Title 26, Internal Revenue CodeRelease 119-102
§7268 Possession with Intent to Sell in Fraud of Law or to Evade Tax
Title 26 › Subtitle F — Procedure and Administration › CHAPTER 75 — CRIMES, OTHER OFFENSES, AND FORFEITURES › Subchapter B — Other Offenses › § 7268
Summary
Anyone who has items that the law taxes and plans to sell them to cheat the tax rules or to avoid paying those taxes must pay a penalty. The penalty is $500 or at least twice the amount of taxes they tried to evade.
Full Legal Text
Title 26, §7268
Internal Revenue Code, Source: USLM XML via OLRC
Every person who shall have in his custody or possession any goods, wares, merchandise, articles, or objects on which taxes are imposed by law, for the purpose of selling the same in fraud of the internal revenue laws, or with design to avoid payment of the taxes imposed thereon, shall be liable to a penalty of $500 or not less than double the amount of taxes fraudulently attempted to be evaded.
Reference
Citations & Metadata
Citation
26 U.S.C. § 7268
Title 26, Internal Revenue Code
Last Updated
Aug 21, 2026
Release point: 119-102