What are the penalties for tax fraud?

In New Mexico, tax fraud is a serious offense that can result in serious penalties. Tax fraud is a type of white-collar crime and is defined as the deliberate misrepresentation or omission of information on a tax return or other document to avoid paying taxes or to receive a larger refund. Tax fraud may be charged as either a state or federal crime, depending on the circumstances. If prosecuted and convicted on a state level, a person could face up to nine years in prison for each count of tax fraud. If prosecuted and convicted on a federal level, the maximum penalty is five years in prison for each count of tax fraud. In addition, those convicted of tax fraud may be required to pay a fine, restitution, or both as well as court costs and other fees. Depending on the extent of fraud, restitution could amount to a large sum. Other civil and criminal penalties may also apply, including denial of certain benefits, such as social security and passport restrictions. It is important to note that the Internal Revenue Service (IRS) can initiate and carry out audits of taxpayers and corporations before any court proceedings and may impose substantial fines and other penalties at the conclusion of an audit. Tax fraud is a serious crime with consequences that can include significant fines, jail time, and other penalties. It is important to understand the laws and consequences associated with tax fraud and to seek professional advice if any questions arise.

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What are the penalties for tax fraud?

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