PRIA, Government Policy, Made Personal

Summary

Makes it a crime to, on purpose, lie in or help make false tax papers or to hide things to avoid taxes. That covers signing a tax return or other document under penalty of perjury that you know is false; helping, advising, or preparing a fraudulent tax return, claim, or other tax document; forging or fraudulently signing bonds, permits, entries, or similar tax papers; moving, hiding, or storing goods or property to evade a tax or a levy; and, when dealing with a tax compromise or closing agreement, hiding property or destroying, altering, or lying about books, records, or statements. A person convicted of any of these crimes is guilty of a felony and can be fined up to $100,000 ($500,000 for a corporation), sentenced to up to 3 years in prison, or both, plus the costs of prosecution.

Title 26, §7206

Internal Revenue Code, Source: USLM XML via OLRC

Any person who—

(1)Declaration under penalties of perjury

Willfully makes and subscribes any return, statement, or other document, which contains or is verified by a written declaration that it is made under the penalties of perjury, and which he does not believe to be true and correct as to every material matter; or

(2)Aid or assistance

Willfully aids or assists in, or procures, counsels, or advises the preparation or presentation under, or in connection with any matter arising under, the internal revenue laws, of a return, affidavit, claim, or other document, which is fraudulent or is false as to any material matter, whether or not such falsity or fraud is with the knowledge or consent of the person authorized or required to present such return, affidavit, claim, or document; or

(3)Fraudulent bonds, permits, and entries

Simulates or falsely or fraudulently executes or signs any bond, permit, entry, or other document required by the provisions of the internal revenue laws, or by any regulation made in pursuance thereof, or procures the same to be falsely or fraudulently executed, or advises, aids in, or connives at such execution thereof; or

(4)Removal or concealment with intent to defraud

Removes, deposits, or conceals, or is concerned in removing, depositing, or concealing, any goods or commodities for or in respect whereof any tax is or shall be imposed, or any property upon which levy is authorized by section 6331, with intent to evade or defeat the assessment or collection of any tax imposed by this title; or

(5)Compromises and closing agreements

In connection with any compromise under section 7122, or offer of such compromise, or in connection with any closing agreement under section 7121, or offer to enter into any such agreement, willfully—

(A)Concealment of property

Conceals from any officer or employee of the United States any property belonging to the estate of a taxpayer or other person liable in respect of the tax, or

(B)Withholding, falsifying, and destroying records

Receives, withholds, destroys, mutilates, or falsifies any book, document, or record, or makes any false statement, relating to the estate or financial condition of the taxpayer or other person liable in respect of the tax;

shall be guilty of a felony and, upon conviction thereof, shall be fined not more than $100,000 ($500,000 in the case of a corporation), or imprisoned not more than 3 years, or both, together with the costs of prosecution.

Notes & Related Subsidiaries

Editorial Notes

Amendments

1982—Pub. L. 97–248 substituted “$100,000 ($500,000 in the case of a corporation)” for “$5,000”.

Statutory Notes and Related Subsidiaries

Effective Date

of 1982 AmendmentAmendment by Pub. L. 97–248 applicable to offenses committed after Sept. 3, 1982, see section 329(e) of Pub. L. 97–248, set out as a note under section 7201 of this title.

§7206 Fraud and False Statements