Section 7202, here, criminalizes the following conduct:
Any person required under this title to collect, account for, and pay over any tax imposed by this title who willfully fails to collect or truthfully account for and pay over such tax shall, in addition to other penalties provided by law, be guilty of a felony [balance omitted]
Like evasion, section 7202, [enhanced version available to lexis.com subscribers], is a 5-year felony offense. It is the most serious offense chargeable specifically for payroll tax fraud so common in the business world. Much of that fraud could possibly be charged as a conspiracy or tax evasion or, possibly, tax obstruction under Section 7212(a), [enhanced version available to lexis.com subscribers]. But Section 7202 is the targeted serious tax crime for this particular conduct.
I would have thought that it is a "no brainer" that this serious conduct involves fraud or deceit and thus would be an aggravated felony, just as tax evasion is. But, apparently, I am wrong.
View Jack Townsend's opinion in its entirety on the Federal Tax Crimes blog site.
For additional insight, explore Tax Crimes, authored by Jack Townsend and available at the LexisNexis® Store
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