26 U.S.C. § 7201 – Attempt to Evade or Defeat Tax (Tax Evasion)
This statute makes willful tax evasion a federal felony, covering any intentional attempt to evade taxes or their payment.
What this statute does.
Section 7201 is the government’s primary criminal tax evasion statute. It applies to any person who willfully attempts—by any means—to evade or defeat:
- The assessment of a tax, or
- The payment of a tax
The statute reaches far beyond false tax returns. It captures any affirmative act designed to conceal income, mislead the IRS, or obstruct tax collection.
The three required elements.
To secure a conviction, the government must prove:
- A tax deficiency (tax owed and unpaid)
- A willful intent to evade or defeat the tax
- An affirmative act of evasion (not mere nonpayment)
Common affirmative acts include false returns, offshore concealment, nominee accounts, double books, or deliberate cash structuring.
Willfulness is the battlefield.
“Willful” means a voluntary, intentional violation of a known legal duty. Good-faith misunderstandings, reliance on advisors, or accounting errors can be powerful defenses when supported by evidence.
Penalties.
A conviction under § 7201 carries:
- Up to 5 years in federal prison
- Up to $100,000 in fines for individuals
- Up to $500,000 in fines for corporations
- Mandatory payment of prosecution costs
These penalties apply in addition to civil tax penalties, interest, and potential restitution.
Why § 7201 is treated seriously.
Tax evasion charges often anchor broader investigations involving:
- Money laundering
- Fraud or false statements
- RICO predicates
- Asset forfeiture
Once a case crosses from civil audit to criminal investigation, exposure escalates quickly.
If you are under IRS criminal investigation or facing tax evasion charges, call (314) 900-HELP or contact our federal criminal defense attorneys immediately.
