Fraudulent intent to evade tax

Sec. 4. The penalty for failure to file a return or to make full payment with that return with the fraudulent intent of evading the tax is one

hundred percent (100%) of the tax owing. Fraudulent intent encompasses the making of a misrepresentation of a material fact (See 45 IAC

15-5-7(f)(3)) which is known (See 45 IAC 15-5-7(f)(3)(B)) to be false, or believed not to be true, in order to evade taxes.

Negligence, whether slight or great, is not equivalent to the intent required. An act is fraudulent if it is an actual, intentional wrongdoing, and the

intent required is the specific purpose of evading tax believed to be owing.

(Department of State Revenue; 45 IAC 15-11-

4; filed Oct 1, 1987, 1:30 pm: 11 IR 544)