Fraudulent Returns, Statements, or Other Documents

A. Fraudulent Returns, Statements, or Other Documents Statute – IRC 7207

Any person who willfully delivers or discloses to the Secretary any list, return, account, statement, or other document, known by him to be fraudulent or to be false as to any material matter, shall be fined* not more than $10,000 ($50,000 in the case of a corporation), or imprisoned not more than 1 year, or both. Any person required pursuant to section 6047(b), section 6104(d) or subsection (i) or (j) of section 527 to furnish any information to the Secretary or any other person who willfully furnishes to the Secretary or such other person any information known by him to be fraudulent or to be false as to any material matter shall be fined not more than $10,000 ($50,000 in the case of a corporation), or imprisoned not more than 1 year, or both.

B. Interpretation of 7207

This crime usually involves false, altered, or fictitious documents that are presented in response to requests for more information while under audit.

The elements of the crime are:

  1. The disclosure to any employee of the IRS of any document;
  2. The document is false or fraudulent as to a material matter; and
  3. Willfulness or knowledge by the individual that the document is false or fraudulent as to a material matter.

The statute of limitations for this crime is 6 years from the date of disclosure of the document to the IRS.

The materiality and willfulness aspects of the crime are similar to other tax crimes.

C. Conclusion

Care must be exercised if you are or suspect you are being investigated by the IRS for this crime. This crime carries a one year sentence in federal prison, and it has elements that are very similar to the more serious evasion charges. If you are or suspect you are being investigated by the IRS, then it is important that you have counsel to assist you in interrogations and investigation. Call our office at (408) 459-8427 for criminal legal representation.