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 Ohio, tax evasion is considered a serious criminal offense, both under federal and state law. Federally, as per the Internal Revenue Code (26 U.S.C. §7201), 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. Similarly, under Ohio state law, tax evasion related to state taxes such as income, property, sales, franchise, payroll, and other state-imposed taxes is also illegal. The specific statutes and penalties for tax evasion under Ohio law vary depending on the type of tax and the amount involved, but they also carry severe consequences including fines, imprisonment, or both. It is important for individuals and entities in Ohio to comply with both federal and state tax laws to avoid these penalties.
