Us Code § 7341 - Penalty for sales to evade tax
Full text of Us Code United States Code § 7341 — Penalty for sales to evade tax, with citation guidance and answers to common questions.
§ 7341. Penalty for sales to evade tax
(a) Nonenforceability of contract
Whenever any person who is liable to pay any tax imposed by this title upon, for, or in respect of, any property sells or causes or allows the same to be sold before such tax is paid, with intent to avoid such tax, or in fraud of the internal revenue laws, any debt contracted in such sale, and any security given therefor, unless the same shall have been bona fide transferred to an innocent holder, shall be void, and the collection thereof shall not be enforced in any court.
(b) Forfeiture of sum paid on contract
If such property has been paid for, in whole or in part, the sum so paid shall be deemed forfeited.
(c) Moiety
Any person who shall sue for the sum so paid (in an action of debt) shall recover from the seller the amount so paid, one-half to his own use and the other half to the use of the United States.
(Aug. 16, 1954, ch. 736, 68A Stat. 872.)
About This Section
26 U.S.C. § 7341 is part of Title 26 of the United States Code. The United States Code is the official codification of federal statutes maintained by the Office of the Law Revision Counsel of the U.S. House of Representatives. Congress amends the Code through new public laws, which are eventually incorporated into the relevant title.
This section may be cited in legal writing as 26 U.S.C. § 7341. For the most current official text, including any recent amendments, use the official source links below. Do not rely on this page as the sole authority for legal citation or litigation.
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