26 U.S.C. § 7206 — Fraud and false statements

Page 3851 TITLE 26—INTERNAL REVENUE CODE § 7206 EFFECTIVE DATE OF 1982 AMENDMENT Amendment by section 329(b) of Pub. L. 97–248 appli- cable to offenses committed after Sept. 3, 1982, see sec- tion 329(e) of Pub. L. 97–248, set out as a note under sec- tion 7201 of this title. EFFECTIVE DATE OF 1968 AMENDMENT Amendment by Pub. L. 90–364 applicable with respect to taxable years beginning after Dec. 31, 1967, except as provided by section 104 of Pub. L. 90–364, see section 103(f) of Pub. L. 90–364, set out as a note under section 243 of this title. § 7204. Fraudulent statement or failure to make statement to employees In lieu of any other penalty provided by law (except the penalty provided by section 6674) any person required under the provisions of section 6051 to furnish a statement who willfully fur- nishes a false or fraudulent statement or who willfully fails to furnish a statement in the manner, at the time, and showing the informa- tion required under section 6051, or regulations prescribed thereunder, shall, for each such of- fense, upon conviction thereof, be fined not more than $1,000, or imprisoned not more than 1 year, or both. (Aug. 16, 1954, ch. 736, 68A Stat. 852.) § 7205. Fraudulent withholding exemption certifi- cate or failure to supply information (a) Withholding on wages Any individual required to supply information to his employer under section 3402 who willfully supplies false or fraudulent information, or who willfully fails to supply information thereunder which would require an increase in the tax to be withheld under section 3402, shall, in addition to any other penalty provided by law, upon convic- tion thereof, be fined not more than $1,000, or imprisoned not more than 1 year, or both. (b) Backup withholding on interest and divi- dends If any individual willfully makes a false cer- tification under paragraph (1) or (2)(C) of section 3406(d), then such individual shall, in addition to any other penalty provided by law, upon convic- tion thereof, be fined not more than $1,000, or imprisoned not more than 1 year, or both. (Aug. 16, 1954, ch. 736, 68A Stat. 852; Pub. L. 89–368, title I, § 101(e)(5), Mar. 15, 1966, 80 Stat. 62; Pub. L. 97–34, title VII, § 721(b), Aug. 13, 1981, 95 Stat. 341; Pub. L. 97–248, title III, §§ 306(b), 308(a), Sept. 3, 1982, 96 Stat. 588, 591; Pub. L. 98–67, title I, §§ 102(a), 107(b), Aug. 5, 1983, 97 Stat. 369, 382; Pub. L. 98–369, div. A, title I, § 159(a), July 18, 1984, 98 Stat. 696; Pub. L. 101–239, title VII, § 7711(b)(2), Dec. 19, 1989, 103 Stat. 2393.) Editorial Notes AMENDMENTS 1989—Subsec. (b). Pub. L. 101–239 amended subsec. (b) generally. Prior to amendment, subsec. (b) read as fol- lows: ‘‘If any individual willfully makes— ‘‘(1) any false certification or affirmation on any statement required by a payor in order to meet the due diligence requirements of section 6676(b), or ‘‘(2) a false certification under paragraph (1) or (2)(C) of section 3406(d), then such individual shall, in addition to any other penalty provided by law, upon conviction thereof, be fined not more than $1,000, or imprisoned not more than 1 year, or both.’’ 1984—Pub. L. 98–369 in subsecs. (a) and (b) substituted ‘‘in addition to’’ for ‘‘in lieu of’’ and struck out ref- erence to penalty under section 6682 after ‘‘penalty pro- vided by law’’. 1983—Pub. L. 98–67 designated existing provisions as subsec. (a), added subsec. (b), and repealed amendments made by Pub. L. 97–248. See 1982 Amendment note below. 1982—Pub. L. 97–248 provided that, applicable to pay- ments of interest, dividends, and patronage dividends paid or credited after June 30, 1983, this section is amended by designating the existing provisions as sub- sec. (a) with a heading of ‘‘Withholding on wages’’, and by adding a new subsec. (b). Section 102(a), (b) of Pub. L. 98–67, title I, Aug. 5, 1983, 97 Stat. 369, repealed sub- title A (§§ 301–308) of title III of Pub. L. 97–248 as of the close of June 30, 1983, and provided that the Internal Revenue Code of 1954 [now 1986] [this title] shall be ap- plied and administered (subject to certain exceptions) as if such subtitle A (and the amendments made by such subtitle A) had not been enacted. Subsec. (b), re- ferred to above, read as follows: ‘‘(b) Withholding of interest and dividends ‘‘Any person who— ‘‘(1) willfully files an exemption certificate with any payor under section 3452(f)(1)(A), which is known by him to be fraudulent or to be false as to any material matter, or ‘‘(2) is required to furnish notice under section 3452(f)(1)(B), and willfully fails to furnish such no- tice in the manner and at the time required pursu- ant to section 3452(f)(1)(B) or the regulations pre- scribed thereunder, shall, in lieu of any penalty otherwise provided, upon conviction thereof, be fined not more than $500, or imprisoned not more than 1 year, or both.’’ 1981—Pub. L. 97–34 substituted ‘‘$1,000’’ for ‘‘$500’’. 1966—Pub. L. 89–368 substituted ‘‘section 3402’’ and ‘‘any other penalty provided by law (except the penalty provided by section 6682)’’ for ‘‘section 3402(f)’’ and ‘‘any penalty otherwise provided’’ respectively. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1989 AMENDMENT Amendment by Pub. L. 101–239 applicable to returns and statements the due date for which (determined without regard to extensions) is after Dec. 31, 1989, see section 7711(c) of Pub. L. 101–239, set out as a note under section 6721 of this title. EFFECTIVE DATE OF 1984 AMENDMENT Pub. L. 98–369, div. A, title I, § 159(b), July 18, 1984, 98 Stat. 696, provided that: ‘‘The amendments made by this section [amending this section] shall apply to ac- tions and failures to act occurring after the date of the enactment of this Act [July 18, 1984].’’ EFFECTIVE DATE OF 1983 AMENDMENT Amendment by section 107(b) of Pub. L. 98–67 effec- tive Aug. 5, 1983, see section 110(c) of Pub. L. 98–67, set out as a note under section 31 of this title. EFFECTIVE DATE OF 1981 AMENDMENT Amendment by Pub. L. 97–34 applicable to acts and failures to act after Dec. 31, 1981, see section 721(d) of Pub. L. 97–34, set out as a note under section 6682 of this title. § 7206. Fraud and false statements Any person who— (1) Declaration under penalties of perjury Willfully makes and subscribes any return, statement, or other document, which contains Page 3852 TITLE 26—INTERNAL REVENUE CODE § 7207 or is verified by a written declaration that it is made under the penalties of perjury, and which he does not believe to be true and cor- rect as to every material matter; or (2) Aid or assistance Willfully aids or assists in, or procures, counsels, or advises the preparation or presen- tation under, or in connection with any mat- ter arising under, the internal revenue laws, of a return, affidavit, claim, or other document, which is fraudulent or is false as to any mate- rial matter, whether or not such falsity or fraud is with the knowledge or consent of the person authorized or required to present such return, affidavit, claim, or document; or (3) Fraudulent bonds, permits, and entries Simulates or falsely or fraudulently exe- cutes or signs any bond, permit, entry, or other document required by the provisions of the internal revenue laws, or by any regula- tion made in pursuance thereof, or procures the same to be falsely or fraudulently exe- cuted, or advises, aids in, or connives at such execution thereof; or (4) Removal or concealment with intent to de- fraud Removes, deposits, or conceals, or is con- cerned in removing, depositing, or concealing, any goods or commodities for or in respect whereof any tax is or shall be imposed, or any property upon which levy is authorized by sec- tion 6331, with intent to evade or defeat the as- sessment or collection of any tax imposed by this title; or (5) Compromises and closing agreements In connection with any compromise under section 7122, or offer of such compromise, or in connection with any closing agreement under section 7121, or offer to enter into any such agreement, willfully— (A) Concealment of property Conceals from any officer or employee of the United States any property belonging to the estate of a taxpayer or other person lia- ble in respect of the tax, or (B) Withholding, falsifying, and destroying records Receives, withholds, destroys, mutilates, or falsifies any book, document, or record, or makes any false statement, relating to the estate or financial condition of the tax- payer or other person liable in respect of the tax; shall be guilty of a felony and, upon conviction thereof, shall be fined not more than $100,000 ($500,000 in the case of a corporation), or impris- oned not more than 3 years, or both, together with the costs of prosecution. (Aug. 16, 1954, ch. 736, 68A Stat. 852; Pub. L. 97–248, title III, § 329(c), Sept. 3, 1982, 96 Stat. 618.) Editorial Notes AMENDMENTS 1982—Pub. L. 97–248 substituted ‘‘$100,000 ($500,000 in the case of a corporation)’’ for ‘‘$5,000’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1982 AMENDMENT Amendment by Pub. L. 97–248 applicable to offenses committed after Sept. 3, 1982, see section 329(e) of Pub. L. 97–248, set out as a note under section 7201 of this title. § 7207. Fraudulent returns, statements, or other documents Any person who willfully delivers or discloses to the Secretary any list, return, account, state- ment, or other document, known by him to be fraudulent or to be false as to any material mat- ter, shall be fined not more than $10,000 ($50,000 in the case of a corporation), or imprisoned not more than 1 year, or both. Any person required pursuant to section 6047(b), section 6104(d), or subsection (i) or (j) of section 527 to furnish any information to the Secretary or any other per- son who willfully furnishes to the Secretary or such other person any information known by him to be fraudulent or to be false as to any ma- terial matter shall be fined not more than $10,000 ($50,000 in the case of a corporation), or imprisoned not more than 1 year, or both. (Aug. 16, 1954, ch. 736, 68A Stat. 853; Pub. L. 87–792, § 7(m)(3), Oct. 10, 1962, 76 Stat. 831; Pub. L. 91–172, title I, § 101(e)(5), Dec. 30, 1969, 83 Stat. 524; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 96–603, § 1(d)(5), Dec. 28, 1980, 94 Stat. 3505; Pub. L. 97–248, title III, § 329(d), Sept. 3, 1982, 96 Stat. 619; Pub. L. 98–369, div. A, title IV, § 491(d)(51), July 18, 1984, 98 Stat. 852; Pub. L. 100–203, title X, § 10704(c), Dec. 22, 1987, 101 Stat. 1330–463; Pub. L. 105–277, div. J, title I, § 1004(b)(2)(E), Oct. 21, 1998, 112 Stat. 2681–890; Pub. L. 107–276, § 6(d), Nov. 2, 2002, 116 Stat. 1933.) Editorial Notes AMENDMENTS 2002—Pub. L. 107–276 substituted ‘‘pursuant to section 6047(b), section 6104(d), or subsection (i) or (j) of section 527’’ for ‘‘pursuant to subsection (b) of section 6047 or pursuant to subsection (d) of section 6104’’. 1998—Pub. L. 105–277 struck out ‘‘or (e)’’ after ‘‘sub- section (d)’’. 1987—Pub. L. 100–203 inserted reference to subsec. (e) of section 6104. 1984—Pub. L. 98–369 struck out ‘‘or (c)’’ after ‘‘sub- section (b)’’. 1982—Pub. L. 97–248 substituted ‘‘$10,000 ($50,000 in the case of a corporation)’’ for ‘‘$1,000’’ wherever appearing. 1980—Pub. L. 96–603 substituted ‘‘subsection (b) or (c) of section 6047 or pursuant to subsection (d) of section 6104’’ for ‘‘sections 6047(b) or (c), 6056, or 6104(d)’’. 1976—Pub. L. 94–455 struck out ‘‘or his delegate’’ after ‘‘Secretary’’. 1969—Pub. L. 91–172 substituted ‘‘sections 6047(b) or (c), 6056, or 6104(d)’’ for ‘‘section 6047(b) or (c)’’. 1962—Pub. L. 87–792 inserted sentence providing that any person required pursuant to section 6047(b) or (c) to furnish any information to the Secretary or any other person who willfully furnishes to the Secretary or such other person any information known by him to be fraudulent or to be false as to any material matter shall be fined not more than $1,000, or imprisoned not more than 1 year, or both. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2002 AMENDMENT Pub. L. 107–276, § 6(h)(3), Nov. 2, 2002, 116 Stat. 1934, provided that: ‘‘The amendment made by subsection (d)