Nebraska Tax Fraud and Tax Evasion Laws

The Nebraska Department of Revenue defines tax fraud as a deliberate attempt to evade tax laws by not collecting, reporting, or paying a legally imposed tax. The terms "tax fraud" and "tax evasion" are often used interchangeably to describe the crime of intentionally underpaying taxes. It is important to note that tax fraud can only be committed if the offender intended to cheat on his or her taxes.

Tax codes can be complicated and mistakes are often made, however, honest mistakes don't amount to a fraudulent act. The table below provides of brief overview of Nebraska's main tax fraud and tax evasion laws.

Code Section

Nebraska Revised Statute section 77-2790: Income Tax Evasion

What's Prohibited?

  • If any part of a tax deficiency is the result of fraud, then there can be a penalty equal to fifty percent of the deficiency.
  • If any part of a requested refund is overstated as a result of fraud, then there can be a penalty equal to fifty percent of the overstatement of the refund.
  • If any taxpayer, with the intent to evade or defeat any income tax claims too many exemptions, or in any way overstates the amount of withholding, he or she is guilty of a Class II misdemeanor.
  • If any person with a fraudulent intent fails to pay (or to withhold and pay) any income tax, make any estimated tax payment, or supply required information, may be fined up to $1,000.
  • Any person who aids, procures, advises, or assists in the preparation of a return, affidavit, refund claim, or other document with the knowledge that its use will result in the material understatement of the tax liability of another person, can be penalized up to $1,000 for each separate return or other document.

Penalties

Additionally, income tax evasion is a class IV felony that is punishable by imprisonment for up to five years, and/or a fine of up to $10,000.

Report Tax Fraud

Tax fraud in Nebraska should be reported to the Nebraska Department of Revenue. You can report suspected fraud via email, telephone, mail, or in person. When filing a report it is helpful to provide as much information as possible including the name and address of the suspected fraudster, when the suspected fraud took place, and copies of any documents relating to the actives that you're reporting. For more information visit the Nebraska Department of Revenue's website.

Additional Resources

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

Next Steps: Search for a Local Attorney

Contact a qualified attorney.