| Clients, with unreported income, may subject tax | | | | 7203.) |
| preparers to criminal penalties, fines, costs of | | | | 3) Any person who willfully aids or assists in, or |
| prosecution and up to 10 years imprisonment (2 | | | | procures, counsels, or advises the preparation or |
| felonies, 2 misdemeanors): | | | | presentation of a return, affidavit, claim, or other |
| 1) Any person who willfully attempts in any manner to | | | | document under the tax laws that is fraudulent or false |
| evade or defeat any tax or payment of any tax | | | | as to any material matter is guilty of a felony. This |
| imposed by the Code is guilty of a felony. A person | | | | provision applies regardless of whether or not the |
| convicted of tax evasion may be fined up to $100,000 | | | | taxpayer knows or consents to the falsity or fraud. A |
| ($500,000 for a corporation) or imprisoned not more | | | | person convicted of this offense may be fined up to |
| than five years or both, together with the costs of | | | | $100,000 ($500,000 for a corporation) or imprisoned |
| prosecution. This penalty is in addition to any other | | | | not more than three years or both, together with the |
| penalties provided by law. (IRS § 7201.) | | | | costs of prosecution. (IRC § 7206.) |
| 2) Any person required by the Code or regulations to | | | | 4) Any person who fails to comply with a summons |
| file a return, keep any records or supply any | | | | issued under the Code that calls for testimony or for |
| information who willfully fails to file the return, keep the | | | | the production of books or documents and neglects to |
| records or supply the information is guilty of a | | | | appear or to produce the books or documents has |
| misdemeanor. A person convicted of this offense may | | | | committed a crime. A person convicted of this offense |
| be fined up to $25,000 ($100,000 for a corporation) or | | | | may be fined not more than $1,000 or imprisoned not |
| imprisoned not more than one year or both, together | | | | more than one year or both, together with costs of |
| with the costs of prosecution. This penalty is in addition | | | | prosecution. (IRC § 7210. |
| to any other penalties provided by law. (IRC § | | | | |