Tax Controversy and Litigation
Call for Free Consultation (410) 727-6600

Contact Us for a Free Consultation

Contact Us for a Free Consultation
Sending

Maryland Tax Crimes

Individuals can be, and are, charged criminally by the federal government for tax offenses. Convictions can result in substantial jail time, hefty fines, and a court order to pay unpaid taxes to the United States Treasury. In addition, the state of Maryland also can, and does, prosecute individuals for tax crimes.

Criminal Failure to File

  • Failure to file state income tax returns
  • Failure to file required sale and use tax returns
  • Failure to file income tax withholding returns

Income Tax Fraud

Imagine you own and operate a liquor store in your neighborhood.  You report the business as a sole proprietorship on your individual income tax return.  Many customers pay using credit cards; however, some pay with cash.  In order to reduce your gross receipts and the taxes due, you fail to deposit all of the cash in your business bank account and you fail to tell your tax return preparer about it.  This could result in consequences you never considered.  In addition to potential federal charges, the failure to report all of the cash receipts of your liquor business could result in you being investigated and charged with:

  • Filing false state income tax returns
  • Filing false sales and use tax returns
  • Evasion of sales and use tax
  • Perjury

Other sales and use tax offenses in Maryland include:

  • Evasion of sales and use tax
  • Filing false sales and use tax returns
  • Failure to file required sale and use tax returns
  • Failure to collect or pay over sale and use tax
  • Failure to maintain sales and use tax records

Tax Return Preparer Offenses

You operate an income tax return preparation business.  Your client wants to report that he has a side business, in addition to his primary occupation, which generates income that is greatly exceeded by the expenses he claims to have incurred.  The client admits that the business does not exist and he is trying to inflate his tax refund.  If you prepare and file the return despite knowing it contains false information, you could potentially face the following Maryland criminal charges, in addition to federal charges:

  • Preparing a false return
  • Assisting in the preparation of a false return
  • Causing a false return to be prepared
  • Causing false claims for tax refunds to be made

Employment Tax Offenses

Suppose you run a construction business.  While your business has been improving, you find it difficult to pay employer withholding taxes and other day-to-day operational expenses.  Therefore, you pay some employees in cash and you simply omit others from your payroll records.  On top of potential federal charges, you could face state criminal charges for:

  • Failure to file Maryland income tax withholding returns
  • Failure to withhold Maryland income tax
  • Failure to pay the withheld taxes over to Maryland

For more information or to make an appointment, call Brian Crepeau at 410.649.4981 or email bcrepeau@rosenbergmartin.com.

Talk to a Baltimore Tax Attorney Today

If you are seeking counsel for a tax related legal matter, contact the Rosenberg Martin Greenberg Tax Controversy experts.

Tax Controversy News

Jun 22, 2017

New 2017 Tax Laws Will Affect 2018 Filings

For most tax filers, the dust has settled after the 2017 filing of 2016 taxes. Now is the time to get acquainted with some of the changes that will affect 2017 taxes, filed in early 2018. The changes will affect income calculations, deductions and exemptions, ultimately impacting how much many individuals and families will see…

Jun 7, 2017

Maryland Leads the Nation by Offering Energy Storage System Tax Credit

On May 4, 2017, Maryland became the first state in the nation to offer a tax credit to offset certain costs of installing an energy storage system. The idea behind the legislation is to encourage alternatives to the traditional electronic grid – if the utility providers are disrupted, third parties can take up the task…

May 31, 2017

Foreign-Owned Domestic Disregarded Entities Face New Reporting Rules

The Treasury Department and the Internal Revenue Service recently finalized a notable shift in the way foreign-owned domestic disregarded entities are treated for tax purposes; changes which impose new reporting requirements with which compliance must be achieved. The tax professionals at Rosenberg Martin Greenberg can help provide entities impacted by these rules with legal counsel…

Rosenberg Martin Greenberg

25 South Charles Street, 21st Floor MD 21201
Phone: 410-727-6600
Map & Directions

Rosenberg Martin Greenberg

705 Melvin Avenue Annapolis, MD 21401
Phone: 410-727-6600
Map & Directions