Massachusetts Tax Fraud and Tax Evasion Laws

In Massachusetts, tax fraud and tax evasion are serious crimes that carry steep penalties and repercussions. These crimes generally all fall under one of two categories:

  1. Crimes related to the filing of the return;
  2. Crimes related to the failure to file a return.

 

Common tax fraud-related crimes include:

  • Failure to file a tax return;
  • Failure to pay taxes;
  • Filing a false tax return;
  • Tax money laundering.

What Penalties Are Associated With Tax Fraud and Tax Evasion?

Possible penalties for these crimes can be both civil and criminal. State and federal governments aggressively use Massachusetts criminal law to enforce tax violations. In addition to state law penalties, individuals committing tax fraud can also be investigated by the Internal Revenue Service (IRS).

How Can I Report Suspected Tax Fraud Activity?

You may contact either the IRS or the Massachusetts Department of Revenue (see below). To report tax fraud to the IRS, call the Tax Fraud Hotline recording at 1-800-829-0433 or file a written report using Form 3949-A and sending it directly to the IRS. Although you are not required to identify yourself, it is helpful to do so. Your identity will be kept confidential.

The following table highlights the main provisions of Massachusetts tax fraud and tax evasion laws.

See also Financial Crimes, Forgery, Embezzlement, and Fraud.

Code Section

MGL Chapter 62C, Section 73

What is Prohibited Purposefully failing to file any required tax report or return; or filing a false/misleading document in connection with any tax return, audit or investigation or failing to supply the correct information in a timely manner. Also, intentionally evading any tax or failing to pay a tax; or claiming a false exemption.
Penalties Criminal (Felony) including up to five (5) years in prison, $100,000 fine, restitution or misdemeanor depending on the nature of the crime and civil penalties including fines/restitution.
Possible Associated Crimes Embezzlement, forgery, fraud, falsifying business records, grand theft and more.

Where to Report Suspected Tax Fraud

Massachusetts Department of Revenue (DOR) Tax Fraud Hotline 1-800 792-5254

Common Types of Tax Fraud/Tax Evasion

 

  • Underreporting income,
  • Overestimating expenses or deductions
  • failing to collect employment taxes,
  • Making False Statements to Investigators,
  • Violating Employer Withholding requirements,
  • Not filing a yearly tax return.

Get a Free Evaluation of Your Massachusetts Tax Fraud/Evasion Issue

If you are under audit or have been charged with either tax fraud or tax evasion, remember that you have the right to legal representation. In some cases, a tax attorney may be able to straighten out any errors or misunderstandings in your tax filings. In any event, consider having a local tax attorney provide a free evaluation of your Massachusetts tax matters.

Next Steps: Search for a Local Attorney

Contact a qualified attorney.