With tax season upon us, it's a very good question: is criminal tax fraud something that happens by mistake? Am I going to face prosecution and jail time just for misunderstanding a complex tax law or not being very good at arithmetic? Call 888.535.3686 now or contact us by filling out this form, to retain the Lento Law Firm's Criminal Defense Team for skilled and experienced handling of criminal tax fraud charges while you consider this tax law primer.

The Difference Between Fraud and Mistake

In the law, fraud is generally one thing, while mistake is another. Fraud typically involves intentional, deliberate, or willful deception, purposely aimed to avoid a known obligation or for an illicit gain. Mistake, on the other hand, involves an error or omission due to a lack of knowledge or information. Fraud is deliberate, while mistake is innocent.

Drawing a Difficult Line

The line between fraud and mistake, though, can sometimes be hard to draw. One must look into the mind of the alleged wrongdoer. Even a scammer who purposefully swindles a gullible victim out of the victim's life savings will generally deny the intent to cheat the victim out of anything, although the dishonest intent will be obvious. A taxpayer who fails to report windfall income that the taxpayer didn't expect to earn will likewise deny the intent to do so more credibly than an obvious scammer.

The Intent Element of Criminal Tax Fraud

Criminal tax fraud or tax evasion, whether a federal charge or state charge, generally requires knowledge of the tax obligation and deliberate, intentional action to avoid it, not just a mistake. For instance, the federal tax evasion statute 26 USC 7201 applies only to “any person who willfully attempts” to evade the tax. See also the New Jersey tax evasion statute Section 54:52-10, applying only to a person who files a false state tax return “with the intent to evade” a tax.

The various state and federal tax fraud and tax evasion statutes vary but generally use synonyms like deliberately, intentionally, willfully, knowingly, or purposefully when describing the necessary guilty state of mind. Beware, though: you may incur significant civil tax penalties, not incarceration but monetary penalties, for accidentally failing to pay a tax.

Premier Criminal Defense Available

If you face criminal tax fraud or tax evasion charges, our attorneys have the substantial criminal tax law knowledge, skills, and experience necessary for your best defense. We know how to help our clients prove when they lack the guilty state of mind that the tax statutes require.

Do not retain unqualified or inexperienced counsel. Get the best available defense. Retain the Lento Law Firm's Criminal Defense Team if you face criminal tax fraud or evasion charges. Call 888.535.3686 now or fill out this contact form for the representation you need for your best possible outcome to serious criminal charges in New Jersey.