Many criminal tax cases focus on taxpayers who file false returns. But federal law also targets the professionals and advisors who help prepare those returns.
Under IRC §7206(2), it is a felony to willfully aid, assist, procure, counsel, or advise the preparation of a tax return or document that is fraudulent or materially false. The statute applies not only to tax preparers but to anyone who knowingly participates in creating or submitting false information to the IRS.
For tax professionals, business advisors, payroll providers, and even company employees involved in preparing tax filings, IRC §7206(2) carries serious risk.
📘 Reference: IRC §7206
What IRC §7206(2) Criminalizes?
Section 7206(2) makes it a felony for any person to willfully aid, assist, procure, counsel, or advise in the preparation or presentation of a tax return or document that is fraudulent or materially false. The statute applies broadly to different types of tax returns. Section 7206(2) often used against tax preparers.
Penalties for Violating IRC §7206(2)
Conviction under §7206(2) carries significant penalties, including:
- Felony Charges – Convictions are felonies.
- Prison Time – Up to 3 years imprisonment.
- Fines – Up to $100,000 for individuals, or $500,000 for corporations.
- Costs – The defendant may be liable for the costs of prosecution.
When to Hire a Criminal Tax Attorney?
You should seek legal counsel immediately if IRS special agents contact you, if clients report being interviewed by investigators, or if a civil audit raises concerns about possible fraud. Obtaining legal representation at the earliest stage is critical, as early intervention can significantly influence whether criminal charges are ultimately filed.
📘 Reference: IRS Form 2848, Power of Attorney
Need help with a similar issue? Contact our firm today for a consultation.
Section §7206(2) criminalizes assisting in the preparation or filing of false tax returns. The statute applies broadly to tax professionals and anyone who knowingly participates in submitting materially false information to the IRS.
Because each false return may be charged as a separate felony, the potential consequences can be severe.
If you believe you may be under investigation for assisting in the preparation of false tax returns, early legal intervention can significantly affect the outcome.
Contact Pelham PLLC immediately for confidential criminal tax defense.
FAQs
What is IRC §7206(2)?
It is a federal felony that criminalizes willfully helping prepare or file a materially false tax return.
Who can be charged under IRC §7206(2)?
Tax preparers, CPAs, bookkeepers, payroll providers, and anyone who knowingly assists in filing a false return.
What are the penalties under §7206(2)?
Up to three years in federal prison per count, plus fines.
Can tax preparers lose their licenses after conviction?
Yes. Convictions often lead to loss of professional licenses and bans from preparing returns.
When should I hire a criminal tax attorney?
Immediately if IRS Criminal Investigation contacts you or fraud allegations arise.
