IRS Criminal Tax Cases
Failure to File
§ 7203. Willful failure to file return, supply information, or pay taxAny person required under this title to pay any estimated tax or tax, or required by this title or by regulations made under authority thereof to make a return, keep any records, or supply any information, who willfully fails to pay such estimated tax or tax, make such return, keep such records, or supply such information, at the time or times required by law or regulations, shall, in addition to other penalties provided by law, be guilty of a misdemeanor and, upon conviction thereof, shall be fined not more than $25,000 ($100,000 in the case of a corporation), or imprisoned not more than 1 year, or both, together with the costs of prosecution. In the case of any person with respect to whom there is a failure to pay any estimated tax, this section shall not apply to such person with respect to such failure if there is no addition to tax under section 6654 or 6655 with respect to such failure. In the case of a willful violation of any provision of section 6050I, the first sentence of this section shall be applied by substituting “felony” for “misdemeanor” and “5 years” for “1 year”.
This statute actually sets out five different tax misdemeanors, each of which is punishable by up to one year imprisonment: (1) Willful failure to file a required return; (2) Willful failure to pay an estimated tax; (3) Willful failure to pay tax; (4) Willful failure to keep records; and (5) Willful failure to furnish information.
If the willful failure to file involves an IRS Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, it is a felony punishable by up to five years imprisonment.