Criminal Tax Fraud – False Statements
Internal Revenue Code §7206 is the statute which outlines what constitutes criminal tax fraud as a result of false statements. This includes:
- Willfully making a false declaration under penalty of perjury with the knowledge that it is not true in all material matters, including signed returns or documents that contain a written declaration that it was signed under the penalty of perjury. This section applies regardless of a resulting tax deficiency.
- Willfully assisting, obtaining or advising in the preparation or presentation of a return or document that is false in a material matter
- Removing or concealing goods, commodities, or property with the intent to evade the assessment or collection of tax.
A violation of this statue is punishable with a maximum fine of $100,000 for an individual or $500,000 for a corporation, imprisonment of not more than 3 years, or both, plus costs of prosecution. However, 18 USC §3571 increases the maximum fine allowed to $250,000 for an individual.