Statutes of Limitation for Criminal Prosecution
- General statute of limitation for criminal offenses arising under Internal Revenue Code is three years. IRC
§ 6531.
- Failure to keep records. IRC § 7203.
- Failure to supply information. IRC § 7203.
- Supplying false withholding exemption certificate. IRC § 7205.
- A six-year statute of limitations applies to:
- Willfully attempting to evade or defeat any tax. IRC
§ 7201.
- Willfully failing to pay any tax or file any tax return. IRC § 7203.
- Aiding or abetting the preparation of a false return, claim, or other document. IRC
§ 7206(2).
- Submitting false documents. IRC
§ 7207.
- Interfering with the administration of the tax laws. IRC
§ 7212(a).
- Unlawful acts of IRS employees. IRC
§ 7214(a).
- Failure to collect, account for or pay over. IRC § 7202.
- Delivery or disclosure of false documents. IRC § 7207.
- Conspiracy to commit tax evasion. 18 U.S.C. § 371.
- Note - six-year statute of limitations for criminal tax evasion under IRC
§ 7201 begins running on the day the last affirmative act is committed. U.S. v. Beacon Brass Co., Inc., 344 U.S. 43 (1952).
- For example, if a taxpayer committed tax evasion by failing to report income, placed the unreported income in a foreign bank account, then failed to report the foreign account (Schedule B, Part III) on each of his subsequent tax returns, thereby committing "affirmative acts" of evasion, then the statutory period limiting prosecution would not expire until six years from the last tax return that fails to report the foreign bank account.
- "Affirmative acts" of evasion can also be found in, e.g., false statements to IRS agents, hiding of sources of income and avoiding recording of transactions.
Computation of statutory limitations periods for criminal tax matters can require knowledge of applicable case law. Consult with your tax attorney. |
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