Connecticut Tax Fraud and Tax Evasion Laws

"Tax fraud" and "tax evasion" are terms that are often used interchangeably, however, tax fraud is technically a type of tax evasion. Tax evasion occurs whenever a taxpayer intentionally attempts to underpay his or her taxes. When the taxpayer willfully makes fraudulent statements on their tax return in order to evade a tax, then tax fraud has been committed.

The following charts highlight Connecticut's main tax fraud and tax evasion laws.

Code Section

Connecticut General Statutes section 12-736: Penalty for Fraud

What's Prohibited?

  • Willfully attempting to evade any required tax, or
  • Failing to pay, sign and return any return, or to supply any required information with the intent to defraud

Penalties

Punishable by a penalty equal to the total amount evaded, and/or a fine of up to $1,000.

Code Section

Connecticut General Statutes section 12-737: Penalties for Willful Violations

What's Prohibited?

  1. Willfully failing pay any tax, make a return, or supply required records, or
  1. Willfully submitting any list, return, account, statement, or other document that you know is fraudulent or false in any material detail

Limitation

An offender can't be charged with an offense under both (a) and (b) for the same tax period, but an offender can be charged for both offenses upon the same information.

Penalties

  1. Punishable by a fine of up to $1,000 and/or imprisonment for up to one year.
  1. Punishable by a fine of up to $5,000 and/or imprisonment of up to five years.

Mistakes Aren't Considered Tax Fraud

Although it is important to try to fill out your tax forms correctly, mistakes that are made in good faith aren't considered to be tax fraud in Connecticut. The laws outlined in the tables above note that it is illegal to willfully evade paying taxes with the intent to defraud. In other words, in order to be convicted of tax evasion the prosecution will have to prove that you intentionally tried to evade paying a tax.

How Do You Report Tax Fraud?

You can report suspected tax fraud to the Connecticut Department of Revenue Services (DRS) by completing their referral form. Reports can be submitted anonymously, but if you do chooses to submit identifying information it will be kept confidential.

Additional Resources

State laws change frequently. For case specific information regarding Connecticut's tax fraud and tax evasion laws contact a local tax attorney.

Next Steps: Search for a Local Attorney

Contact a qualified attorney.