26 USC 7206 – Fraud and False Statements Translated
The first element the government must prove beyond a reasonable doubt is that a person made and subscribed and filed a tax return. A tax return is made and subscribed to at the time it is signed. A tax return is filed at the time it is delivered to the Internal Revenue Service.
The second element the government must prove beyond a reasonable doubt is that the return contained a declaration that it was made under penalty of perjury. To satisfy this element, the government must prove that the face of the return contained a statement indicating that the return was made under penalty of perjury.
The third element the government must prove beyond a reasonable doubt is that the return was false regarding a material matter. An income tax return may be false not only by reason of understatement of income, but also because of an overstatement of lawful deductions or because deductible expenses are mischaracterized on the return. The false statement in the return must be material. This means it must be essential to an accurate determination of an individuals’s tax liability. However, the government does not need to prove the existence of a tax deficiency or loss to the government.
The fourth element the government must prove beyond a reasonable doubt is that the individual did not believe the return was true and correct as to that material matter. Whether the individual believed the return to be true and correct as to that material matter may be proven by individuals’s conduct and by all of the facts and circumstances surrounding the case.
The government is not required to prove that all of the items alleged are materially false: proof that a single item is materially false is sufficient. However, the jury must agree with each all of the other jurors that the same item is materially false. Unless the jury unanimously agrees that the government has proved the same item was materially false beyond a reasonable doubt, the jury must find the defendant not guilty.
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26 USC 7206 Defined
Any person who–
(1) Declaration under penalties of perjury.–Willfully makes and subscribes any return, statement, or other document, which contains or is verified by a written declaration that it is made under the penalties of perjury, and which he does not believe to be true and correct as to every material matter; or
(2) Aid or assistance.–Willfully aids or assists in, or procures, counsels, or advises the preparation or presentation under, or in connection with any matter arising under, the internal revenue laws, of a return, affidavit, claim, or other document, which is fraudulent or is false as to any material matter, whether or not such falsity or fraud is with the knowledge or consent of the person authorized or required to present such return, affidavit, claim, or document; or
(3) Fraudulent bonds, permits, and entries.–Simulates or falsely or fraudulently executes or signs any bond, permit, entry, or other document required by the provisions of the internal revenue laws, or by any regulation made in pursuance thereof, or procures the same to be falsely or fraudulently executed, or advises, aids in, or connives at such execution thereof; or
(4) Removal or concealment with intent to defraud.–Removes, deposits, or conceals, or is concerned in removing, depositing, or concealing, any goods or commodities for or in respect whereof any tax is or shall be imposed, or any property upon which levy is authorized by section 6331, with intent to evade or defeat the assessment or collection of any tax imposed by this title; or
(5) Compromises and closing agreements.–In connection with any compromise under section 7122, or offer of such compromise, or in connection with any closing agreement under section 7121, or offer to enter into any such agreement, willfully–
(A) Concealment of property.–Conceals from any officer or employee of the United States any property belonging to the estate of a taxpayer or other person liable in respect of the tax, or
(B) Withholding, falsifying, and destroying records.–Receives, withholds, destroys, mutilates, or falsifies any book, document, or record, or makes any false statement, relating to the estate or financial condition of the taxpayer or other person liable in respect of the tax; shall be guilty of a felony and, upon conviction thereof, shall be fined not more than $100,000 ($500,000 in the case of a corporation), or imprisoned not more than 3 years, or both, together with the costs of prosecution.