26 U.S.C. § 7203 – Willful Failure to File Return, Supply Information, or Pay Tax
This statute makes it a federal crime to willfully fail to file tax returns, keep required records, supply required information, or pay taxes owed.
What this statute does.
Section 7203 targets willful noncompliance with basic tax obligations. Unlike tax evasion statutes, it focuses on failures to act rather than affirmative schemes or concealment.
The statute applies to anyone who is legally required to:
- File a tax return
- Pay a tax or estimated tax
- Keep required tax records
- Supply information required by the Internal Revenue Code or regulations
Willfulness is required.
The government must prove the failure was willful—a voluntary, intentional violation of a known legal duty. Forgetfulness, misunderstanding, or simple negligence is not enough on its own.
Misdemeanor offense.
A standard violation of § 7203 is a misdemeanor, not a felony.
Penalties.
A conviction may result in:
- Up to 1 year in federal prison
- Up to $25,000 in fines ($100,000 for corporations)
- Payment of costs of prosecution
Criminal penalties are separate from any civil tax liability, penalties, or interest.
Important limitation for estimated taxes.
Section 7203 does not apply to a failure to pay estimated taxes if no civil addition to tax is imposed under §§ 6654 or 6655.
Felony enhancement.
If the violation involves a willful failure to comply with 26 U.S.C. § 6050I (cash transaction reporting), the offense is elevated to a felony with:
- Up to 5 years in prison
If you are facing a federal tax investigation or charge, call (314) 900-HELP or contact our federal criminal defense attorneys to discuss your situation.
