IRS Penalties - Tax Fraud Penalties

Tax Fraud Penalties

Intentional filing of materially false tax returns is considered tax fraud, and is a criminal offence. Any person convicted of committing tax fraud, or aiding and abetting another in committing tax fraud, may be subject to forfeiture of property and/or jail time. Conviction and sentencing is through the court system. Responsibility for prosecution falls to the U.S. Department of Justice not the Internal Revenue Service.

Penalties may be assessed against tax protesters who raise arguments that income tax laws are not valid or for filing frivolous returns or court petitions.

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