Every tax return is signed “under penalty of perjury.” That signature is more than a formality — it forms the legal basis for one of the IRS’s most powerful criminal statutes. A misstatement on a tax return becomes a criminal offense under IRC §7206(1) when it is a false, material matter that is willfully made with the specific intent to violate the law and is submitted under a written declaration of penalties of perjury.
Learn what qualifies as filing a false return under IRC §7206(1), the penalties, and how a tax attorney can help resolve it before criminal prosecution.
📘 Official IRS References: IRC §7206(1) — Fraud and False Statements
Elements of the Crime: Filing False Return Under IRC §7206(1)
To secure a conviction under §7206(1), federal prosecutors must prove five elements beyond a reasonable doubt:
| Element | Explanation |
|---|---|
| 1️⃣ Made and Signed a Return | The taxpayer prepared or authorized the return. |
| 2️⃣ Return Was Under Penalty of Perjury | The taxpayer signed knowing the declaration was true and correct. |
| 3️⃣ False Material Statement | Information on the return was materially false (i.e., income, deduction, or credit). |
| 4️⃣ Knowledge of Falsity | The taxpayer knew the statement was false when signing. |
| 5️⃣ Willfulness | The taxpayer acted intentionally, not through mistake or negligence. |
Understanding Willfulness and Materiality
“Willfulness” again means a voluntary, intentional violation of a known duty, not as a result of accident, negligence, or inadvertence. Materiality, meanwhile, means the false information matters to determining the tax owed.
💡 Note: Even if a preparer inserted the false info, the taxpayer’s signature certifies accuracy. The IRS can still prosecute under §7206(1).
Penalties and Consequences Under IRC §7206(1)
A violation of IRC §7206(1) is a felony offense. Upon conviction, an individual may face the following severe penalties:
- Fines – A fine of up to $100,000 (or $500,000 for a corporation)
- Prison – Imprisonment for up to three years
Why Legal Representation Matters?
Only attorneys offer federal privilege — vital when the IRS suspects criminal conduct. CPAs and enrolled agents can be subpoenaed to testify.
| Potential Situation | Potential Attorney’s Role |
|---|---|
| Filed incorrect or false returns | Conduct confidential review |
| IRS contact or audit begins | Intervene as legal representative |
| Special Agent involvement | Negotiate voluntary disclosure |
| DOJ Tax Division referral | Seek civil resolution |
| Potential preparer liability | Dual representation strategy |
📘 Reference: Form 2848 – Power of Attorney
Need help with a similar issue? Contact our firm today for a consultation.
Filing a false return under IRC § 7206(1) is a felony offense, often referred to as “tax perjury,” that applies to individuals who willfully make and subscribe a false tax return or other document under the penalties of perjury.
Contact Pelham PLLC today for a confidential consultation. Our federal tax attorneys represent individuals and businesses facing false return allegations, audits, and IRS Criminal Investigations nationwide.
FAQs
Do I have to owe tax to be charged?
No. A conviction under § 7206(1) does not require the government to prove that a tax deficiency (an actual amount of unpaid tax) existed, only that a false statement was made regarding a material matter.
