Tax evasion is the criminal offense of a person or entity using illegal methods to avoid paying the person or entity’s true tax liability. The Internal Revenue Code—a federal statute located in the United States Code—states that “[a]ny person who willfully attempts in any manner to evade or defeat any tax imposed by this title or the payment thereof shall, in addition to other penalties provided by law, 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 5 years, or both, together with the costs of prosecution.” 26 U.S.C. §7201.

Tax evasion is also a criminal offense under state law when a person or en,tity uses illegal methods to avoid paying state income, property, sales, franchise, payroll, and other taxes.

In Montana, tax evasion is considered a serious criminal offense, both under federal and state law. Federally, the Internal Revenue Code (26 U.S.C. §7201) stipulates that any individual or entity that willfully attempts to evade or defeat any tax or its payment is committing a felony. The penalties for such an offense can include a fine of up to $100,000 for individuals ($500,000 for corporations), imprisonment for up to 5 years, or both, along with the costs of prosecution. At the state level, Montana has its own tax statutes that criminalize the evasion of state taxes, which include income, property, sales, franchise, payroll, and other state-imposed taxes. The specific penalties and procedures for dealing with tax evasion in Montana are governed by state tax laws and are enforced by the Montana Department of Revenue. Individuals or entities found guilty of evading state taxes may face fines, imprisonment, or other penalties as prescribed by Montana law.