Maryland Tax Fraud and Tax Evasion Laws
Tax fraud or tax evasion is a form of white collar crime that’s prohibited in Maryland. Typically, tax evasion occurs by intentionally not paying or underpaying your taxes. For example, a person who intentionally completes a tax forms inaccurately in order to owe less in taxes to the state has committed tax fraud.
Who Enforces Tax Fraud Laws in Maryland?
The Comptroller of Maryland collects taxes for the state. If an individual taxpayer doesn’t pay his or her taxes, the comptroller can enforce tax compliance.
Maryland Tax Fraud and Tax Evasion Laws: Statutes
The following table outlines some of the main individual tax fraud laws in Maryland.
|Code Sections||Maryland General Tax Code, Sections 13-703: False Returns, 13-704: Fraudulent Failure to File Return, 13-705: Frivolous Income Tax Return, 13-716: Estate Tax Underpayment Penalty, 13-1001: Willful Failure to File Return, 13-1002: Willfully Filing False Return, 13-1024: Willful Failure to Provide Information
Maryland Property Tax Code, Sections 14-1002: Willful Failure to Provide Information, 14-1004: Willfully Providing False Information or Answer, 14-1006: Willful Failure to Submit Property Tax Report, 14-1009: Willful Failure to Answer Interrogatory, and 14-1012: Misrepresenting Consideration on Recorded Instrument
|Prohibitions and Penalties||
A sample of the Maryland tax evasion laws that effect consumers and their penalties include:
The following property tax evasion laws can be punished by up to 18 months imprisonment, a $5,000 fine, and prosecution for perjury is also possible.
Additionally, misrepresenting how much was paid by showing written evidence of a greater or lesser recordation tax (tax for recording an instrument with land records like a deed or conveyance) paid than required, can be punished by up to 6 months in jail and a fine up to $500.
Note: In Maryland, felonies and misdemeanors that can be punished by imprisonment can usually be prosecuted at any time, thus a crime you committed long ago can come back to haunt you.
|Time Limits to Collect Back Taxes||
Typically, the tax collector must assess taxes (including income and estate taxes) within three years of the date it’s filed or due. However, if a person was intentionally evading taxes or filed an incomplete return, the assessment can be made at any time. That is, there’s no statute of limitations, or law limiting the time for collection.
Note: State laws change constantly, it’s important to verify the accuracy of these laws by conducting your own legal research or consulting with a qualified Maryland tax attorney or criminal defense attorney.
Maryland Tax Fraud and Tax Evasion Laws: Related Resources
- Maryland Personal Income Tax Laws
- Maryland Probate and Estate Taxes Laws
- Income Tax: Fraud vs. Negligence
Get Legal Help with Your Maryland Tax Fraud/Evasion Case
Tax evasion and tax fraud are very serious charges that can lead to steep fines and lengthy prison sentences. If you've been charged with either crime, or are currently under audit, it's in your best interests to get in touch with a local tax attorney to discuss your situation and received personalized legal advice.
Next Steps: Search for a Local Attorney
Contact a qualified attorney.