During the course of discovery or a support trial, a judge learns that a witness or a party has unreported “under-the-table” income. Instinctively, a trial judge may recoil: The federal1 and state2 taxing authorities should be informed.

But the judicial decision to report tax evasion or other illegal conduct to “appropriate authorities” is more complicated, with an overlay of ethical rules and practical complications that caution judicial restraint.

Judicial Discretion