New York State Tax Enforcement Actions

In keeping with the continued enforcement and publication of enforcement actions for tax non-filers, the State of New York recently announced that 18 individuals across the state have been arrested on tax evasion charges in coordinated enforcement actions with district attorneys

The defendants have been charged with evading hundreds of thousands of dollars in state income taxes on millions in earnings by not filing tax returns over multiple years. Those arrested include five attorneys, a doctor, a CPA, an anesthesiologist, an annuity underwriter, an English professor and a former Assistant District Attorney. Even though these prosecutions are at the individual level, we continue to see enforcement at both the personal and entity level. Non-filers of any measure are a priority for every state in the Union due to the continuing state budget woes. “Tax evasion by non-filers is a major problem that costs the state hundreds of millions in tax revenues each year,” said Acting Commissioner Woodward in a recent public release. “Non-filers should be aware that the department is determined to investigate and prosecute this misconduct. Using enhanced technology and beefed-up enforcement resources, we will continue to bring these cases. We are fortunate to have the cooperation of district attorneys from across the state. In the past two years the number of income tax prosecutions initiated by the department has increased more than 360 percent.”

Commissioner Woodward stated further in the public release that non-filers have been arrested statewide in connection with this initiative. “Those delinquent taxpayers who are not yet under audit or investigation are encouraged to avoid penalties or criminal prosecution by participating in the department’s Voluntary Disclosure and Compliance Program. It is hoped that today’s cases will encourage such taxpayers to come forward and satisfy their obligations.”

For more information regarding the New York State Voluntary Disclosure Program and other state Disclosure Programs, as well as Amnesty Programs, please contact your tax advisor.