In a tax evasion case in which the taxpayer is charged pursuant to section 7201 of the Code, it is reversible error for the trial court to refuse the taxpayer's request to instruct the jury that willful failure to pay a tax under section 7203 is a lesser included offense, if the facts of the case would permit a reasonable jury to find willful failure to pay and not the additional act of concealment required to prove tax evasion.
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Generally, the Federal Sentencing Guidelines are based upon tax loss. The definition normally does not include interest and penalties. However, when a taxpayer is convicted of a tax offense in which he attempted to evade payment of the tax, interest and penalties, the Court may include interest and penalties in its calculation of tax loss.
Taxpayer attempted to pay tax liens with checks from bank accounts that had been closed. The taxpayer was convicted after a jury trial of tax evasion. The Court sentenced the taxpayer based upon tax loss including interest and penalty since the taxpayer attempted to defraud the IRS for the entire amount.
There is No Requirement That The Government Prove a Taxpayer Had Funds to Pay Tax to Obtain a Conviction Pursuant to Section 7202. Further, the Statute of Limitations for an Offense Under Section7202 is Six Years.