Tax Attorney in Brooklyn | Defense in a False Invoice Case

In New York, issuing invoices without an actual transfer of goods or services may trigger both tax and criminal liability. 

Such conduct can lead to allegations including:

Filing inaccurate sales tax returns.

Creating or using false business records.

Facilitating improper tax credits or deductions by another party.

Even if the accused did not personally file a fraudulent tax refund claim, prosecutors may argue that the issuance of fabricated invoices enabled tax discrepancies. 

Therefore, exposure may extend beyond civil penalties to potential felony charges, depending on the amount involved and the surrounding facts.

In this matter, the client had issued invoices at the request of a third party distributor, believing that the arrangement was a temporary solution to cash flow issues. 

The client received a commission of approximately $15,000, but there was no evidence that the client personally claimed unlawful tax refunds.

Initially, the client made statements accepting full responsibility. 

Those statements were influenced by assurances from the distributor that financial liabilities would be covered. 

The defense clarified that the early admission did not reflect the complete factual background.

The legal team emphasized:

The context of financial hardship.

The absence of intent to personally evade taxes.

The corrective testimony provided later in the investigation.

By demonstrating that the client ultimately cooperated and corrected the record, counsel worked to restore credibility. 

In New York sentencing practice, cooperation and transparency frequently influence judicial discretion.

At the time of the alleged conduct, the business faced imminent closure. Payroll obligations, rent, and supplier debts exceeded revenue. 

The defense presented documentation showing that the client believed the invoicing arrangement was similar to an outsourced billing accommodation, although that belief was legally mistaken.

Importantly, the client did not orchestrate tax refund filings or sales tax evasion schemes. 

The financial benefit was limited to a commission that did not approach the total face value of the invoices. 

This distinction helped narrow the perceived level of culpability.

Following the investigation, the client voluntarily paid approximately $40,000 toward assessed sales tax liabilities.

For the remaining balance, the client submitted a structured installment plan to the New York tax authorities.

The defense presented evidence that:

Partial tax payments had already been made.

A formal repayment proposal was pending approval.

The client had retained an accountant to ensure accurate future filings.

Such actions signaled that the client was not attempting to evade responsibility. 

Instead, the client was working to correct the consequences of the prior misconduct.

This outcome reflects several factors that frequently shape sentencing in New York tax-related prosecutions:

The degree of intent and knowledge.

The level of personal financial gain.

Cooperation with investigators.

Concrete restitution and compliance efforts.

While every case depends on its unique facts, early intervention by a Tax attorney Brooklyn business owners consult can significantly affect the trajectory of a criminal tax matter.

Prompt legal analysis may limit exposure, frame the narrative accurately, and position the client for a non custodial resolution when circumstances permit.

False invoice allegations in New York are serious, and prosecutors may pursue aggressive penalties.

Nevertheless, a structured defense that combines legal argument, factual clarification, and financial remediation can meaningfully influence the final result.

 With proper preparation and strategic advocacy, outcomes that avoid imprisonment are possible in appropriate cases.