Many taxpayers refuse to believe that the IRS does not have the power to send taxpayers to jail for violating the United States’ tax laws. Nothing could be further from the truth.
The following is a list of criminal actions that the IRS could send a taxpayer to jail for:
- Section 7201 crime – A willful attempt to evade or defeat a tax or the payment of tax constitutes a felony and is punishable up to a $100,000 fine and/or 5 years in prison.
- Section 7203 crime – A willful failure to pay an estimated tax, file a tax return, keep records, or supply information constitutes a misdemeanor and is punishable up to $25,000 and/or 1 year in prison
- Section 7206(1) crime – A willful subscribing of a tax return or other statement containing a written declaration that is made under penalties of perjury that the person does not believe to be true or correct constitutes a felony and is punishable up to $100,000 and/or 3 years in prison
- Section 7206(2) crime – A willful aiding and assisting in the preparation of a false return or other document that is fraudulent or false constitutes a felony and is punishable up to $100,000 and/or 3 years in prison
- Section 7212 crime – An attempt to interfere with the administration of the IRS laws by corruption, force, or threats of force constisutes a felony and is punishable up to $5,000 and/or 3 years in prison
- 18 USC 2 crime – Any person who aids, abets, counsels, induces, or procures an offense against the United States will be held federally criminally liable
- 18 USC 371 crime – Any two or more people that make an agreement to either commit a crime or defraud the United States will be held federally criminally liable
- 18 USC 1001 crime – Any statement that is material, false, voluntary, intentional, and known to be false will be held federally criminally liable
The above listed crimes are not a complete list of all of the crimes that a taxpayer could be sent to prison for by the IRS.