New Mexico Tax Fraud and Tax Evasion Laws

Everyone knows that taxes must be paid every year, but what happens when you purposely avoid paying these taxes? In New Mexico, tax fraud or evasion is against the law and can lead to prison time and fines. The state has specific laws that prohibit tax evasion, failing to file a tax return, and intentionally making, signing, filing, or verifying false or fraudulent tax returns or documents. This is a quick summary of New Mexico's tax fraud and tax evasion laws.

New Mexico Tax Fraud and Evasion Laws

The following table outlines New Mexico's tax fraud and evasion laws.

Code Sections NEW MEXICO STAT. ANN. ยง 7-1-72, 7-7-73
What is Prohibited?

Tax fraud consists of any of the following acts:

  • Willfully and knowingly making a false tax return, statement, or other document.
  • Willfully assisting, procuring, advising, or counseling on the preparation or presentation of a false or fraudulent return or other tax document regardless of the knowledge or consent of the taxpayer or other person preparing the tax return
  • Filing a false tax return electronically
  • Removing, concealing, or releasing a property which is to be levied for payment of taxes with the intent of evading taxes, or aiding or causing any of the above to occur

Tax evasion consists of willfully attempting to evade or defeat a tax or payment. It is also illegal to cause evasion of another person's taxes.

Penalties

For tax fraud, the penalties vary depending upon the amount of the tax owed. If the tax owed was:

  • $250 or less, it is a petty misdemeanor punishable by up to 6 months in prison and up to $500 in fines.
  • Over $250, it is a misdemeanor punishable by up to 1 year in prison and up to $1,000 in fines.
  • Over $500 but not more than $2,500, it is a fourth-degree felony punishable by up to 18 months in prison and up to $5,000 in fines.
  • Over $2,500 but not more than $20,000, it is a third-degree felony punishable by up to 3 years in prison and up to $5,000 in fines.
  • Over $20,000, it is a second-degree felony punishable by up to 9 years in prison and up to $10,000 in fines.

Tax evasion is a felony punishable by up to 5 years in prison and up to $10,000 in fines.

If the person attempted to cause evasion of another person's taxes, it is punishable by a civil penalty equal to the amount of tax that was attempted to be evaded plus penalties and interest.

New Mexico Tax Fraud and Tax Evasion Laws: Related Resources

Tax laws are notoriously difficult to understand. If you would like legal assistance with a tax matter you can contact a New Mexico tax attorney. If you have been charged with tax fraud or tax evasion, you can contact a New Mexico criminal defense attorney. You can also visit FindLaw's section on Tax Evasion and Fraud for more information on this topic.

Next Steps: Search for a Local Attorney

Contact a qualified attorney.