Individual penalties

Official source

A penalty of $5,000 is imposed on persons who for a fee, compensation, or as an employee, aid or assist in the giving of fraudulent returns, reports, statements, or other documents [Tax Law § 685(r)]. A penalty of $500 per statement is imposed on an individual who makes a statement that decreases income tax withholding without a reasonable basis (for example, a taxpayer claims excessive withholding allowances resulting in under withholding of tax for the year). This penalty will be waived if the individual’s tax liability is equal to or less than the taxpayer’s credits (including the credits for tax withheld and estimated tax) [Tax Law § 685(s)].

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Individual penalties

Official source

A penalty of $5,000 is imposed on persons who for a fee, compensation, or as an employee, aid or assist in the giving of fraudulent returns, reports, statements, or other documents [Tax Law § 685(r)]. A penalty of $500 per statement is imposed on an individual who makes a statement that decreases income tax withholding without a reasonable basis (for example, a taxpayer claims excessive withholding allowances resulting in under withholding of tax for the year). This penalty will be waived if the individual’s tax liability is equal to or less than the taxpayer’s credits (including the credits for tax withheld and estimated tax) [Tax Law § 685(s)].