Criminal Penalties Assessed by the IRS

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Discussion
The IRS has access to several criminal charges which can be brought against taxpayers. Below, I have provided a brief outline on some of the more common charges.

1. Attempt to evade or defeat tax (§7201 - felony) - Applicable to those who willfully attempt to evade paying income taxes.
   a) Imprisonment for up to 5 years
   b) Fined up to $250,000 for individuals ($500,000 for corporations)
   c) Or both, together with costs of prosecution

2. Willful failure to collect or pay over tax (§7202 - felony) - Failure of a tax collector to collect and remit tax.
   a) Imprisonment for up to 5 years
   b) Fined up to $250,000 for individuals ($500,000 for corporations)
   c) Or both, together with costs of prosecution

3. Willful failure to file return, supply information, or pay tax (§7203 - misdemeanor) - Failure to make a return, keep such records, or supply any information, who willfully fails to pay such estimated tax or tax, make such return, keep such records, or supply such information, at the time required by law or regulations.
   a) Imprisonment for up to 1 year
   b) Fined up to $100,000 for individuals ($200,000 for corporations)
   c) Or both, together with costs of prosecution

4. Fraud and false statements (§7206 - felony) - Applicable to those who willfully makes or assists/counsels/advises in making any return, statement, or other document which includes known materially false information.
   a) Imprisonment for up to 3 years
   b) Fined up to $250,000 for individuals ($500,000 for corporations)
   c) Or both, together with costs of prosecution

5. Attempts to interfere with administration of Internal Revenue laws (§7212 - felony) - Applicable to those who corruptly or by force attempts to intimidate or impede any officer or employee of the United States acting in an official capacity.
   a) Imprisonment for up to 3 years
   b) Fined up to $250,000 for individuals ($500,000 for corporations)
   c) Or both, together with costs of prosecution

6. Conspiracy to commit offense or to defraud the United States (§371 - felony) - Applicable to two or more people who conspire to commit any offense or defraud the United States.
   a) Imprisonment for up to 5 years
   b) Fined up to $250,000 for individuals ($500,000 for corporations)
   c) Or both, together with costs of prosecution

Penalties
https://www.irs.gov/compliance/criminal-investigation/related-statutes-and-penalties-general-fraud

Disclosure
Any accounting, business or tax advice contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues, nor a substitute for a formal opinion, nor is it sufficient to avoid tax-related penalties.