Phoenix Tax Fraud Attorney

Tax Fraud Penalties

In most tax audits, the IRS only interested in collecting the taxes owed, which includes interest and penalties. Tax fraud can be punishable by both criminal and civil penalties.

The following are penalties for various types of tax fraud:

• Title 26 USC § 7201 – Attempt to evade or defeat tax (felony)
  • Prison sentence of five years
  • Or fine of up to $250,000 for individuals and $500,000 for corporations
  • Or both, along with prosecution costs
• Title 26 USC § 7202 – Willful failure to collect or pay over tax (felony)
  • Prison sentence of five years
  • Or fine of up to $250,000 for individuals and $500,000 for corporations
  • Or both, along with prosecution costs
• Title 26 USC § 7203 – Willful failure to file return, supply information, or pay tax
  • Prison sentence of one year
  • Or fine of up to $100,000 for individuals and $200,000 for corporations
  • Or both, along with prosecution costs
  • Title 26 USC § 7206 – Fraud and false statements
    • Prison sentence of three years
    • Or fine of up to $250,000 for individuals and $500,000 for corporations
    • Or both, along with prosecution costs
  • Title 26 USC § 7212(A) – Attempts to interfere with administration of Internal Revenue laws
    • Prison sentence of three years
    • Or fine of up to $250,000 for individuals and $500,000 for corporations
    • Or both, along with prosecution costs
  • Title 18 USC § 371 – Conspiracy to commit offense or to defraud United States
    • Prison sentence of five years
    • Or fine of up to $250,000 for individuals and $500,000 for corporations
    • Or both, along with prosecution costs