Internal Revenue Code (Title 26 U.S.C.)
26 U.S.C. § 7341
Penalty for sales to evade tax
# (a)
Nonenforceability of contract Whenever any person who is liable to pay any tax imposed by this title upon, for, or in respect of, any property sells or causes or allows the same to be sold before such tax is paid, with intent to avoid such tax, or in fraud of the internal revenue laws, any debt contracted in such sale, and any security given therefor, unless the same shall have been bona fide transferred to an innocent holder, shall be void, and the collection thereof shall not be enforced in any court.
# (b)
Forfeiture of sum paid on contract If such property has been paid for, in whole or in part, the sum so paid shall be deemed forfeited.
# (c)
Moiety Any person who shall sue for the sum so paid (in an action of debt) shall recover from the seller the amount so paid, one-half to his own use and the other half to the use of the United States.
Source: view the official text
Nearby sections (25 sections)
- 7301 · Property subject to tax
- 7302 · Property used in violation of internal revenue laws
- 7303 · Other property subject to forfeiture
- 7304 · Penalty for fraudulently claiming drawback
- 7321 · Authority to seize property subject to forfeiture
- 7322 · Delivery of seized personal property to United States marshal
- 7323 · Judicial action to enforce forfeiture
- 7324 · Special disposition of perishable goods
- 7325 · Personal property valued at $100,000 or less
- 7326 · [§7326. Repealed. Pub. L. 115–141, div. U, title IV,…
- 7327 · Customs laws applicable
- 7328 · Cross references
- 7341 · Penalty for sales to evade tax
- 7342 · Penalty for refusal to permit entry or examination
- 7343 · Definition of term "person"
- 7344 · Extended application of penalties relating to officers of the…
- 7345 · Revocation or denial of passport in case of certain tax…
- 7401 · Authorization
- 7402 · Jurisdiction of district courts
- 7403 · Action to enforce lien or to subject property to payment of tax
- 7404 · Authority to bring civil action for estate taxes
- 7405 · Action for recovery of erroneous refunds
- 7406 · Disposition of judgments and moneys recovered
- 7407 · Action to enjoin tax return preparers
- 7408 · Actions to enjoin specified conduct related to tax shelters and…