New Mexico Tax Fraud and Tax Evasion Laws

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.

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.