Tax Lawyer's Blog

Acting Commissioner of the New York State Department of Taxation and Finance Jamie Woodward issued a press release today announcing the arrests of eighteen people on tax evasion charges:

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 at Hunter College and a former Monroe County Assistant District Attorney. 

The arrests continue the Tax Department’s statewide enforcement initiative targeting those who evade their tax obligations by not filing their state returns. To date 25 other non-filers have been arrested statewide in connection with this initiative. 

“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.  “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.”

New York is hoping that the mass arrests and subsequent press release inspire other tax cheats to come forward voluntarily:

“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. For more information about these programs, go to the department’s website at www.nystax.gov.  It is hoped that today’s cases will encourage such taxpayers to come forward and satisfy their obligations.”

(Hat Tip: Paul Caron)

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