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 West Virginia, as in all states, tax evasion is considered a serious criminal offense. At the federal level, under 26 U.S.C. § 7201, any individual or entity that willfully attempts to evade or defeat any tax imposed by the Internal Revenue Code may be charged with a felony. Conviction can result in 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 West Virginia state law, tax evasion related to state taxes such as income, property, sales, franchise, payroll, and other state-imposed taxes is also illegal. The state has its own statutes and penalties for tax evasion, which are enforced by the West Virginia State Tax Department. Penalties for state tax evasion can include fines, imprisonment, or both, depending on the severity of the offense and the amount of tax owed.