Title 26 — Internal Revenue CodeRelease 119-73
§7304 Penalty for fraudulently claiming drawback
Title 26 › Subtitle Subtitle F— - Procedure and Administration › Chapter CHAPTER 75— - CRIMES, OTHER OFFENSES, AND FORFEITURES › Subchapter Subchapter C— - Forfeitures › Part PART I— - PROPERTY SUBJECT TO FORFEITURE › § 7304
Summary
If someone lies to get a tax refund (a drawback) on goods that had no internal tax paid, or claims more refund than the tax actually paid, they must pay a penalty. The Secretary chooses whether the penalty is three times the wrong amount or $500.
Full Legal Text
Title 26, §7304
Internal Revenue Code — Source: USLM XML via OLRC
Whenever any person fraudulently claims or seeks to obtain an allowance of drawback on goods, wares, or merchandise on which no internal tax shall have been paid, or fraudulently claims any greater allowance of drawback than the tax actually paid, he shall forfeit triple the amount wrongfully or fraudulently claimed or sought to be obtained, or the sum of $500, at the election of the Secretary.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Amendments
1976—Pub. L. 94–455 struck out “or his delegate” after “Secretary”.
Reference
Citations & Metadata
Citation
26 U.S.C. § 7304
Title 26 — Internal Revenue Code
Last Updated
Apr 6, 2026
Release point: 119-73