26 U.S.C. § 7205

Fraudulent withholding exemption certificate or failure to supply information

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(a) Withholding on wages

Any individual required to supply information to his employer under section 3402 who willfully supplies false or fraudulent information, or who willfully fails to supply information thereunder which would require an increase in the tax to be withheld under section 3402, shall, in addition to any other penalty provided by law, upon conviction thereof, be fined not more than $1,000, or imprisoned not more than 1 year, or both.

(b) Backup withholding on interest and dividends

If any individual willfully makes a false certification under paragraph (1) or (2)(C) of section 3406(d), then such individual shall, in addition to any other penalty provided by law, upon conviction thereof, be fined not more than $1,000, or imprisoned not more than 1 year, or both.

(Aug. 16, 1954, ch. 736, 68A Stat. 852; Pub. L. 89–368, title I, § 101(e)(5), Mar. 15, 1966, 80 Stat. 62; Pub. L. 97–34, title VII, § 721(b), Aug. 13, 1981, 95 Stat. 341; Pub. L. 97–248, title III, §§ 306(b), 308(a), Sept. 3, 1982, 96 Stat. 588, 591; Pub. L. 98–67, title I, §§ 102(a), 107(b), Aug. 5, 1983, 97 Stat. 369, 382; Pub. L. 98–369, div. A, title I, § 159(a), July 18, 1984, 98 Stat. 696; Pub. L. 101–239, title VII, § 7711(b)(2), Dec. 19, 1989, 103 Stat. 2393.)Editorial NotesAmendments

1989—Subsec. (b). Pub. L. 101–239 amended subsec. (b) generally. Prior to amendment, subsec. (b) read as follows: “If any individual willfully makes—

“(1) any false certification or affirmation on any statement required by a payor in order to meet the due diligence requirements of section 6676(b), or

“(2) a false certification under paragraph (1) or (2)(C) of section 3406(d),

then such individual shall, in addition to any other penalty provided by law, upon conviction thereof, be fined not more than $1,000, or imprisoned not more than 1 year, or both.”

1984—Pub. L. 98–369 in subsecs. (a) and (b) substituted “in addition to” for “in lieu of” and struck out reference to penalty under section 6682 after “penalty provided by law”.

1983—Pub. L. 98–67 designated existing provisions as subsec. (a), added subsec. (b), and repealed amendments made by Pub. L. 97–248. See 1982 Amendment note below.

1982—Pub. L. 97–248 provided that, applicable to payments of interest, dividends, and patronage dividends paid or credited after June 30, 1983, this section is amended by designating the existing provisions as subsec. (a) with a heading of “Withholding on wages”, and by adding a new subsec. (b). Section 102(a), (b) of Pub. L. 98–67, title I, Aug. 5, 1983, 97 Stat. 369, repealed subtitle A (§§ 301–308) of title III of Pub. L. 97–248 as of the close of June 30, 1983, and provided that the Internal Revenue Code of 1954 [now 1986] [this title] shall be applied and administered (subject to certain exceptions) as if such subtitle A (and the amendments made by such subtitle A) had not been enacted. Subsec. (b), referred to above, read as follows:

“(b) Withholding of interest and dividends

“Any person who—

“(1) willfully files an exemption certificate with any payor under section 3452(f)(1)(A), which is known by him to be fraudulent or to be false as to any material matter, or

“(2) is required to furnish notice under section 3452(f)(1)(B), and willfully fails to furnish such notice in the manner and at the time required pursuant to section 3452(f)(1)(B) or the regulations prescribed thereunder,

shall, in lieu of any penalty otherwise provided, upon conviction thereof, be fined not more than $500, or imprisoned not more than 1 year, or both.”

1981—Pub. L. 97–34 substituted “$1,000” for “$500”.

1966—Pub. L. 89–368 substituted “section 3402” and “any other penalty provided by law (except the penalty provided by section 6682)” for “section 3402(f)” and “any penalty otherwise provided” respectively.

Statutory Notes and Related SubsidiariesEffective Date of 1989 Amendment

Amendment by Pub. L. 101–239 applicable to returns and statements the due date for which (determined without regard to extensions) is after Dec. 31, 1989, see section 7711(c) of Pub. L. 101–239, set out as a note under section 6721 of this title.

Effective Date of 1984 Amendment

Pub. L. 98–369, div. A, title I, § 159(b), July 18, 1984, 98 Stat. 696, provided that: “The amendments made by this section [amending this section] shall apply to actions and failures to act occurring after the date of the enactment of this Act [July 18, 1984].”

Effective Date of 1983 Amendment

Amendment by section 107(b) of Pub. L. 98–67 effective Aug. 5, 1983, see section 110(c) of Pub. L. 98–67, set out as a note under section 31 of this title.

Effective Date of 1981 Amendment

Amendment by Pub. L. 97–34 applicable to acts and failures to act after Dec. 31, 1981, see section 721(d) of Pub. L. 97–34, set out as a note under section 6682 of this title.

Notes of Decisions

Cited in 114 cases (1 in the last 5 years), 1970–2025 · leading case: Kansas v. Garcia, 140 S. Ct. 791 (2020).

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Kansas v. Garcia, 140 S. Ct. 791 (2020). · cites it 4× “26 U.S.C. § 7205 . Kansas uses a tax-withholding form (K-4) that is similar to the federal form.”

United States v. Walter A. Connor, Jr., 898 F.2d 942 (3rd Cir. 1990). · cites it 13× “Connor argues that he can not be charged with a felony for the years 1982 to 1984 when the basis of the charge is providing his employer with fraudulent W-4s because the provision of the Code directly applicable to willfully supplying false or fraudulent information to an…”

United States v. Gordon S. Buttorff & Charles A. Dodge, 572 F.2d 619 (8th Cir. 1978). · cites it 4× “Dodge appeal from their convictions, after a joint jury trial, on various counts of aiding and abetting several persons (the principals) in the filing of false or fraudulent income tax *622 related forms, in violation of 26 U.S.C. § 7205 1 and 18 U.S.C. § 2 . 2 Buttorff was…”

United States v. Joe Raymond Brooks, 174 F.3d 950 (8th Cir. 1999). · cites it 4× “1981), where we held that 26 U.S.C. § 7205 , not charged in this case, provides the exclusive penalty for submitting false W-4s to one’s employer.”

United States v. Richard Lyle Kelley, 539 F.2d 1199 (9th Cir. 1976). · cites it 4× “*1201 WALLACE, Circuit Judge: Kelley appeals from his conviction after a jury trial on two counts of willfully supplying false information on withholding exemption certificates in violation of 26 U.S.C. § 7205 . 1 He raises three principal issues.”

United States v. Lyle B. Snider, United States of Am. v. Lyle B. Snider, & Sue T. Snider, 502 F.2d 645 (4th Cir. 1974). · cites it 6× “73-1938 defendant engaged in hyperbole — claiming 3 billion dependents on a tax withholding form — and was charged with a violation of 26 U.S.C. § 7205 . In the latter criminal tax case we hold the government failed to prove an essential element of the offense.”

United States v. Paul M. Drefke, United States of Am. v. Richard O. Jameson, 707 F.2d 978 (8th Cir. 1983). · cites it 3× “§ 7203 and for filing false withholding exemption certificates for the years 1979, 1980 and 1981 in violation of 26 U.S.C. § 7205 . They were arrested at the same time but tried separately before juries, 1 Jameson approximately two weeks after Drefke.”

United States v. Robert R. Romero, 640 F.2d 1014 (9th Cir. 1981). · cites it 2× “§ 7203 (1976) and, in Counts VI and VII, with willfully supplying false withholding certificates for the years 1976 and 1977, in violation of 26 U.S.C. § 7205 (1976). On January 10, 1980, the District Court dismissed the counts under 26 U.”

United States v. Nancy E. Wilson, United States of Am. v. Buddy Rex Wilson, 639 F.2d 500 (9th Cir. 1981). · cites it 2× “The Wilsons, who were charged with filing false withholding statements during 1979 in violation of 26 U.S.C. § 7205 , moved to dismiss the indictment on grounds of selective prosecution.”

United States v. Richard Lee Williams, United States of Am. v. Jack A. Terrell, United States of Am. v. Raymon L. Terrell, 644 F.2d 696 (8th Cir. 1981). · cites it 3× “1 In addition, Raymon Ter *697 rell and Williams appeal their convictions, each on one count, for filing false withholding exemption certificates (W-4 forms), in violation of 26 U.S.C. § 7205 (1976). 2 In 1979 Williams and Raymon Terrell filed false withholding exemption…”

United States v. Richard Michael Simkanin, 420 F.3d 397 (5th Cir. 2005). “In Bass , the defendant was charged with willfully submitting false or fraudulent income tax withholding exemption statements to employers in violation of 26 U.S.C. § 7205 . 784 F.2d at 1283 . The defendant asserted as one of his defenses that he could not be held criminally…”

United States v. Dean S. Hazel, (81-1616), James G. Lott, (81-1630), 696 F.2d 473 (6th Cir. 1983). · cites it 2× “Hazel, specifically, was indicted for filing false withholding certificates with his employer in 1979 and 1980 in violation of 26 U.S.C. § 7205 . The certificates contained a signed statement by Hazel that he had no tax liability during the previous year and anticipated none in…”

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