You are referring to 26 U.S. Code § 7203, which is a significant section of the U.S. Internal Revenue Code dealing with criminal offenses.
The full title is: “Willful failure to file return, supply information, or pay tax.”
In simple terms, this statute makes it a federal crime (generally a misdemeanor, but sometimes a felony) for any person who is required by law to take certain actions and willfully fails to do so.
📜 Key Elements of 26 U.S.C. § 7203
The statute covers four separate criminal acts:
- Willful failure to file a tax return. (The most common charge under this section.)
- Willful failure to pay an estimated tax or tax.
- Willful failure to keep records required by the Internal Revenue Code.
- Willful failure to supply information required by the Internal Revenue Code.
The key legal element in all these offenses is willfulness, meaning the person knew of their legal duty but voluntarily and intentionally violated that duty. Negligence or even gross negligence is not enough to prove a violation of this criminal statute.
📝 Related IRS Form 7203
It is also worth noting that the number 7203 is used for an IRS tax form:
- IRS Form 7203 is titled S Corporation Shareholder Stock and Debt Basis Limitations. S corporation shareholders use this form to calculate limits on the amount of losses, deductions, and credits they can claim on their individual tax returns based on their basis in the S corporation.
Given the context of your previous question about an LLC (Gonen Corp) purchase, the Form 7203 may be relevant to the shareholders of the acquiring corporation, but the tax code Section 7203 is the criminal statute.
Disclaimer: I am an AI, not a tax professional or attorney. This information is for general knowledge only and should not be considered legal or financial advice. For specific tax questions or advice, you must consult with a qualified tax advisor or attorney.