Call
Yes, you can go to jail for tax evasion. In New Mexico and across the U.S., tax evasion is a serious criminal offense. Whether it’s willful underreporting, failing to file returns, or concealing income, these acts can lead to harsh penalties, including prison time.
Amador Law Firm lawyer often gets asked how tax law violations are treated locally. If you’re concerned about past returns or are already under investigation, here’s what you need to know.
What Is Tax Evasion?
Tax evasion involves intentionally avoiding the payment of legally due taxes. It differs from an honest mistake. The key word here is “willful.” If you knowingly hide income or claim false deductions, you could face charges under both state and federal tax fraud laws.
Examples of tax evasion include:
- Underreporting income from freelance or cash jobs
- Claiming fake business expenses
- Using offshore accounts to hide earnings
- Not filing tax returns for multiple years
This is different from tax avoidance, which is legal and involves using legitimate deductions or loopholes.
Is Tax Evasion a Federal Crime?
Yes. The IRS can prosecute federal tax evasion under 26 U.S. Code § 7201. A conviction could land you in federal prison for up to 5 years, along with fines up to $100,000 for individuals. Corporate tax fraud penalties are even higher.
If you owe federal taxes, you can still get charged—even if you’re located in Albuquerque. The IRS works closely with state agencies like the New Mexico Taxation and Revenue Department to detect fraud.
Felony Tax Evasion vs. Petty Misdemeanor in NM
Under New Mexico tax fraud laws, the severity of the offense depends on how much you owe or concealed.
Here’s how it breaks down:
- Petty misdemeanor (NM): Often applies to first-time or low-level infractions. Punishable by up to 6 months in jail and a $500 fine.
- Felony tax evasion: If large sums are involved, or if the offense is repeated or egregious, prosecutors can pursue felony charges. This may result in years of prison, massive fines, and asset seizures.
If you’ve received a notice from New Mexico Tax and Revenue in Albuquerque, take it seriously. Ignoring it can escalate a civil penalty into a criminal matter.
How Long Can You Go to Prison for Tax Evasion?
Under federal law, the sentence can be up to 5 years per offense. That means if you filed multiple false returns, each one may count as a separate charge. In New Mexico, felony charges can also bring multi-year sentences depending on the amount and the court’s discretion.
If the tax evasion includes other crimes, like money laundering or wire fraud, additional charges and longer sentences may apply.
Taxes in Albuquerque, New Mexico – Who Investigates?
State-level investigations are often conducted by the Tax Fraud Investigations Division of New Mexico’s Taxation and Revenue Department in Albuquerque. This office monitors suspicious filings, unregistered businesses, and irregularities in New Mexico tax returns.
Federal agencies like the IRS Criminal Investigation Division may step in for more severe cases. If you’re being audited or investigated, it’s important to speak with a criminal defense attorney immediately.
How Do I Report Income Tax Fraud?
If you suspect someone is committing tax fraud, you can report them:
- To the IRS: Use Form 3949-A (Information Referral)
- To New Mexico Tax and Revenue: Call 1-866-809-2335 or use their anonymous online form
Keep in mind, false reports can also be considered fraudulent. Always submit accurate information.
What To Do If You’re Accused of Tax Fraud
If you’ve been contacted by New Mexico Tax and Revenue Albuquerque, or the IRS, do not ignore it. Even if you made a mistake, responding early with legal guidance can reduce your risk of criminal prosecution.
An experienced criminal defense attorney in Albuquerque can:
- Review your tax filings
- Contact investigators on your behalf
- Negotiate settlements or payment plans
- Fight charges in court if needed
Amador Law Firm understands how high the stakes are. We handle white-collar crime and criminal defense cases with care and discretion. Our goal is to protect your rights, and your future.
Want to speak to us directly? Visit our office or contact us today for a consultation.
FAQ: Tax Evasion in New Mexico
Can you go to jail for tax evasion in New Mexico?
Yes. Jail time depends on the amount and intent. Petty misdemeanors may lead to 6 months in jail, while felony tax evasion can result in years in prison.
Is tax evasion a felony?
In many cases, yes. Especially if the amount involved is high or the evasion is repeated or fraudulent.
What’s the difference between tax fraud and tax evasion?
Tax fraud refers to illegal acts like falsifying documents or returns. Tax evasion is the act of deliberately avoiding tax. Both can be prosecuted under similar laws.
How long can you go to jail for federal tax evasion?
Up to 5 years per offense under federal law, plus fines.
Can the state and IRS both charge me?
Yes. You could face both federal and state charges for the same or related offenses.