Nevada Tax Fraud and Tax Evasion Laws

When a taxpayer intentionally doesn't pay, or underpays, taxes then the crime of tax evasion has been committed. Although the terms "tax evasion" and "tax fraud" are often used interchangeably, tax fraud is actually a particular type of tax evasion where a taxpayer intentionally makes misrepresentations on a tax return. Fraud offenses include some sort of false statement, misrepresentation, or deceitful conduct, and can only be committed by an intentional act. Therefore, mistakes or acts of negligence can't amount to tax fraud.

Tax Fraud and Tax Evasion in Nevada

The following chart outlines Nevada's main tax fraud and tax evasion law.

Code Section

Nevada Revised Statutes section 360.340: Fraud or Intentional Evasion of a Tax

What's Prohibited?

Failing to pay a tax (or part of a tax) due to fraud or an intent to evade the tax.

Penalties

  • A 25% penalty is added to the tax owed, or
  • A penalty of three times the tax owed if the tax evaded was imposed pursuant to chapter 372 or 374 with respect to the sale, storage, use, or other consumption of any vehicle, vessel, or aircraft

Common Examples of Tax Fraud

Tax fraud comes in many shapes and sizes, but some of the more common types of tax fraud include intentionally doing any of the following:

  • Failing to file a tax return
  • Underreporting income earned
  • Claiming to be a resident of another state while living in Nevada
  • Overstating expenses (in order to reduce income)
  • Making false or fraudulent claims for tax refunds
  • Under-reporting sales
  • Selling beer or tobacco without paying the excise tax
  • Operating a business under someone else's name in order to avoid taxes
  • Paying cash wages to employees in order to evade taxes
  • Collecting and not remitting sales taxes

Reporting Suspected Tax Fraud

Suspected tax fraud in Nevada should be reported to the Internal Revenue Service (IRS) via this form.

Additional Resources

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

Next Steps: Search for a Local Attorney

Contact a qualified attorney.