Stephen Baldwin has been charged with failing to declare New York state income taxes for the last three years.
According to Rockland County District attorney Thomas Zugibee, the 46-year-old actor owes more thn $350,000 (£218,000) in taxes and penalties.
Baldwin was arraigned on Thursday and pleaded not guilty before being released without bail.
He is due back in court on February 5th and Zugibee said he could face up to four years in jail if found guilty.
But his lawyer Russell Yankwitt said Baldwin has not committed a crime.
Baldwin lives in Upper Grandview, NY and is the youngest of the acting Baldwin brothers. He appeared on Celebrity Big Brother in 2010.