Crime

Penalty

Law

Code section

Supreme Court Case(s)
Constitutional references

Jurisdiction of the Federal District Courts

NA

Describes the extent of jurisdiction of the federal district courts relative to civil actions against the United States related to taxes.

26 U.S.C. 7402

Penalty for officers or employees taking more money than is required by law

Shall be dismissed from office or discharged from employment and, upon conviction thereof, shall be fined not more than $10,000, or imprisoned not more than 5 years, or both. The court may in its discretion award out of the fine so imposed an amount, not in excess of one-half thereof, for the use of the informer, if any, who shall be ascertained by the judgment of the court. The court also shall render judgment against the said officer or employee for the amount of damages sustained in favor of the party injured, to be collected by execution. 

a) Unlawful acts of revenue officers or agents Any officer or employee of the United States acting in connection with any revenue law of the United States - (1) who is guilty of any extortion or willful oppression under color of law; or (2) who knowingly demands other or greater sums than are authorized by law, or receives any fee, compensation, or reward, except as by law prescribed, for the performance of any duty; or (3) who with intent to defeat the application of any provision of this title fails to perform any of the duties of his office or employment; or (4) who conspires or colludes with any other person to defraud the United States; or (5) who knowingly makes opportunity for any person to defraud the United States; or (6) who does or omits to do any act with intent to enable any other person to defraud the United States; or (7) who makes or signs any fraudulent entry in any book, or makes or signs any fraudulent certificate, return, or statement; or (8) who, having knowledge or information of the violation of any revenue law by any person, or of fraud committed by any person against the United States under any revenue law, fails to report, in writing, such knowledge or information to the Secretary; or (9) who demands, or accepts, or attempts to collect, directly or indirectly as payment or gift, or otherwise, any sum of money or other thing of value for the compromise, adjustment, or settlement of any charge or complaint for any violation or alleged violation of law, except as expressly authorized by law so to do.

26 U.S.C. §7214

Engaging in monetary transactions in property derived from specified unlawful activity

(b)(1) Except as provided in paragraph (2), the punishment for an offense under this section is a fine under title 18, United States Code, or imprisonment for not more than ten years or both. (2) The court may impose an alternate fine to that imposable under paragraph (1) of not more than twice the amount of the criminally derived property involved in the transaction. 

(a) Whoever, in any of the circumstances set forth in subsection (d), knowingly engages or attempts to engage in a monetary transaction in criminally derived property of a value greater than $10,000 and is derived from specified unlawful activity, shall be punished as provided in subsection (b). (c) In a prosecution for an offense under this section, the Government is not required to prove the defendant knew that the offense from which the criminally derived property was derived was specified unlawful activity. (d) The circumstances referred to in subsection (a) are - (1) that the offense under this section takes place in the United States or in the special maritime and territorial jurisdiction of the United States; or 

18 U.S.C. 1957

Conspiracy against rights 

They shall be fined under this title or imprisoned not more than ten years, or both

If two or more persons conspire to injure, oppress, threaten, or intimidate any person in any State, Territory, Commonwealth, Possession, or District in the free exercise or enjoyment of any right or privilege secured to him by the Constitution or laws of the United States, or because of his having so exercised the same

18 U.S.C. 241

Federally protected rights being violated

Shall be fined under this title, or imprisoned not more than one year, or both.

(b) Whoever, whether or not acting under color of law, by force or threat of force willfully injures, intimidates or interferes with, or attempts to injure, intimidate or interfere with -

(1) any person because he is or has been, or in order to intimidate such person or any other person or any class of persons from - 

   (B) participating in or enjoying any benefit, service, privilege, program, facility, or activity provided or administered by the United States; 

   (C) applying for or enjoying employment, or any perquisite thereof, by any agency of the United States; 

   (D) serving, or attending upon any court in connection with possible service, as a grand or petit juror in any court of the United States.

18 U.S.C. 245

Extortion

Shall be fined under this title or imprisoned not more than three years, or both; but if the amount so extorted or demanded does not exceed $1,000, he shall be fined under this title or imprisoned not more than one year, or both. 

Whoever, being an officer, or employee of the United States or any department or agency thereof, or representing himself to be or assuming to act as such, under color or pretense of office or employment commits or attempts an act of extortion.

18 U.S.C. 872

Receiving the proceeds of Extortion

Shall be imprisoned not more than 3 years, fined under this title, or both. 

A person who receives, possesses, conceals, or disposes of any money or other property which was obtained from the commission of any offense under this chapter that is punishable by imprisonment for more than 1 year, knowing the same to have been unlawfully obtained

18 U.S.C. 880

Mailing Threatening Communications

Shall be fined under this title or imprisoned not more than two years, or both.

Whoever, with intent to extort from any person any money or other thing of value, knowingly so deposits or causes to be delivered, as aforesaid, any communication, with or without a name or designating mark subscribed thereto, addressed to any other person and containing any threat to injure the property or reputation of the addressee or of another, or the reputation of a deceased person, or any threat to accuse the addressee or any other person of a crime

18 U.S.C. 876

Blackmail

Shall be fined under this title or imprisoned not more than one year, or both. 

Whoever, under a threat of informing, or as a consideration for not informing, against any violation of any law of the United States, demands or receives any money or other valuable thing. 

18 U.S.C. 873

Retaliating against a witness, victim, or an informant 

Shall be fined under this title or imprisoned not more than ten years, or both. (c) If the retaliation occurred because of attendance at or testimony in a criminal case, the maximum term of imprisonment which may be imposed for the offense under this section shall be the higher of that otherwise provided by law or the maximum term that could have been imposed for any offense charged in such case. (d) There is extraterritorial Federal jurisdiction over an offense under this section. 

(b) Whoever knowingly engages in any conduct and thereby causes bodily injury to another person or damages the tangible property of another person, or threatens to do so, with intent to retaliate against any person for - (1) the attendance of a witness or party at an official proceeding, or any testimony given or any record, document, or other object produced by a witness in an official proceeding; or (2) any information relating to the commission or possible commission of a Federal offense or a violation of conditions of probation, parole, or release pending judicial proceedings given by a person to a law enforcement officer; or attempts to do so.

18 U.S.C. 1513

False writings

Shall be fined under this title or imprisoned not more than one year, or both. 

Whoever, being a public officer or other person authorized by any law of the United States to make or give a certificate or other writing, knowingly makes and delivers as true such a certificate or writing, containing any statement which he knows to be false, in a case where the punishment thereof is not elsewhere expressly provided by law.

18 U.S.C. 1018

Officers of U.S. concerned with collection or disbursement using public funds for a private trade or business 

Shall be imprisoned for one year or fined and shall be permanently removed from public and unable to hold another job

Whoever, being an officer of the United States concerned in the collection or the disbursement of the revenues thereof, carries on any trade or business in the funds or debts of the United States, or of any State, or in any public property of either, shall be fined under this title or imprisoned not more than one year, or both.

18 U.S.C. 1901

Searches without a warrant

Shall be fined for a first offense not more than $1,000; and, for a subsequent offense, shall be fined under this title or imprisoned not more than one year, or both. 

Whoever, being an officer, agent, or employee of the United States or any department or agency thereof, engaged in the enforcement of any law of the United States, searches any private dwelling used and occupied as such dwelling without a warrant directing such search, or maliciously and without reasonable cause searches any other building or property without a search warrant.

18 U.S.C. 2236

Taking of property that is not based on law

None listed

(1) Rule I. An exaction by the U.S. Government, which is not based upon law, statutory or otherwise, is a taking of property without due process of law, in violation of the Fifth Amendment to the U.S. Constitution. Accordingly, an Appeals representative in his or her conclusions of fact or application of the law, shall hew to the law and the recognized standards of legal construction. It shall be his or her duty to determine the correct amount of the tax, with strict impartiality as between the taxpayer and the Government, and without favoritism or discrimination as between taxpayers. 

26 CFR § 601.106(f)(1)

Retaliating against or harassing a taxpayer

Charged with misconduct and employment terminated.

The section provides that IRS employees must be charged with misconduct and terminated if there has been a judicial or final administrative determination that the employee committed any of the following acts or omissions: 

1. willful failure to obtain the required approval signatures on documents authorizing the seizure of a taxpayer’s home, personal belongings, or business assets; 
2. providing a false statement under oath with respect to a material matter involving a taxpayer or taxpayer representative; 
3. with respect to a taxpayer, taxpayer representative, or other employee of the Internal Revenue Service, the violation of -- 

1. any right under the Constitution of the United States; or 
2. any civil right established under -- 

1. title VI or VII of the Civil Rights Act of 1964; 
2. title IX of the Education Amendments of 1972; 
3. the Age Discrimination in Employment Act of 1967; 
4. the Age Discrimination Act of 1975; 
5. section 501 or 504 of the Rehabilitation Act of 1973; or 
6. title I of the Americans with Disabilities Act of 1990; 

4. falsifying or destroying documents to conceal mistakes made by any employee with respect to a matter involving a taxpayer or taxpayer representative; 
5. assault or battery on a taxpayer, taxpayer representative, or other employee of the Internal Revenue Service, but only if there is a criminal conviction, or a final judgment by a court in a civil case, with respect to the assault or battery; 
6. violations of the Internal Revenue Code of 1986, Department of Treasury regulations, or policies of the Internal Revenue Service (including the Internal Revenue Manual) for the purpose of retaliating against, or harassing, a taxpayer, taxpayer representative, or other employee of the Internal Revenue Service; 
7. willful misuse of the provisions of section 6103 of the Internal Revenue Code of 1986 for the purpose of concealing information from a congressional inquiry, 
8. willful failure to file any return of tax required under the Internal Revenue Code of 1986 on or before the date prescribed therefor (including any extensions), unless such failure is due to reasonable cause and not to willful neglect, 
9. willful understatement of Federal tax liability, unless such understatement is due to reasonable cause and not to willful neglect, and 
10. threatening to audit a taxpayer for the purpose of extracting personal gain or benefit. 

The Commissioner has the sole discretion, which he cannot delegate, to determine whether to take a personnel action other than termination for the described acts or omissions. Such determination may not be appealed in any administrative or judicial proceeding. 

(See http://www.irs.gov/prod/tax_regs/rra-1203.html)

Section 1203, IRS Restructuring and Reform Act of 1998

Civil damages for certain unauthorized collection actions 

(b) Damages In any action brought under subsection (a) or petition filed under subsection (e), upon a finding of liability on the part of the defendant, the defendant shall be liable to the plaintiff in an amount equal to the lesser of $1,000,000 ($100,000, in the case of negligence) or the sum of - (1) actual, direct economic damages sustained by the plaintiff as a proximate result of the reckless or intentional or negligent actions of the officer or employee, and (2) the costs of the action. (c) Payment authority Claims pursuant to this section shall be payable out of funds appropriated under section 1304 of title 31, United States Code. (d) Limitations (1) Requirement that administrative remedies be exhausted A judgment for damages shall not be awarded under subsection (b) unless the court determines that the plaintiff has exhausted the administrative remedies available to such plaintiff within the Internal Revenue Service. (2) Mitigation of damages The amount of damages awarded under subsection (b)(1) shall be reduced by the amount of such damages which could have reasonably been mitigated by the plaintiff. (3) Period for bringing action Notwithstanding any other provision of law, an action to enforce liability created under this section may be brought without regard to the amount in controversy and may be brought only within 2 years after the date the right of action accrues. (e) Actions for violations of certain bankruptcy procedures (1) In general If, in connection with any collection of Federal tax with respect to a taxpayer, any officer or employee of the Internal Revenue Service willfully violates any provision of section 362 (relating to automatic stay) or 524 (relating to effect of discharge) of title 11, United States Code (or any successor provision), or any regulation promulgated under such provision, such taxpayer may petition the bankruptcy court to recover damages against the United States. (2) Remedy to be exclusive (A) In general Except as provided in subparagraph (B), notwithstanding section 105 of such title 11, such petition shall be the exclusive remedy for recovering damages resulting from such actions. (B) Certain other actions permitted Subparagraph (A) shall not apply to an action under section 362(h) of such title 11 for a violation of a stay provided by section 362 of such title; except that - (i) administrative and litigation costs in connection with such an action may only be awarded under section 7430; and (ii) administrative costs may be awarded only if incurred on or after the date that the bankruptcy petition is filed.

If, in connection with any collection of Federal tax with respect to a taxpayer, any officer or employee of the Internal Revenue Service recklessly or intentionally, or by reason of negligence, disregards any provision of this title, or any regulation promulgated under this title, such taxpayer may bring a civil action for damages against the United States in a district court of the United States. Except as provided in section 7432, such civil action shall be the exclusive remedy for recovering damages resulting from such actions. 

26 USC § 7433

Fraud

Fine and imprisonment not more than one year or both..

Sec. 1018. Official certificates or writings 

Whoever, being a public officer or other person authorized by any law of the United States to make or give a certificate or other writing, knowingly makes and delivers as true such a certificate or writing, containing any statement which he knows to be false, in a case where the punishment thereof is not elsewhere expressly provided by law, shall be fined under this title or imprisoned not more than one year, or both. 

18 U.S.C. Sec. 1018

Sale or receipt of stolen goods 

Shall be fined under this title or imprisoned not more than ten years, or both. 

Sec. 2315. Sale or receipt of stolen goods, securities, moneys, or fraudulent State tax stamps 

Whoever receives, possesses, conceals, stores, barters, sells, or disposes of any goods, wares, or merchandise, securities, or money of the value of $5,000 or more, or pledges or accepts as security for a loan any goods, wares, or merchandise, or securities, of the value of $500 or more, which have crossed a State or United States boundary after being stolen, unlawfully converted, or taken, knowing the same to have been stolen, unlawfully converted, or taken; or
Whoever receives, possesses, conceals, stores, barters, sells, or disposes of any falsely made, forged, altered, or counterfeited securities or tax stamps, or pledges or accepts as security for a loan any falsely made, forged, altered, or counterfeited securities or tax stamps, moving as, or which are a part of, or which constitute interstate or foreign commerce, knowing the same to have been so falsely made, forged, altered, or counterfeited; or
Whoever receives in interstate or foreign commerce, or conceals, stores, barters, sells, or disposes of, any tool, implement, or thing used or intended to be used in falsely making, forging, altering, or counterfeiting any security or tax stamp, or any part thereof, moving as, or which is a part of, or which constitutes interstate or foreign commerce, knowing that the same is fitted to be used, or has been used, in falsely making, forging, altering, or counterfeiting any security or tax stamp, or any part thereof -
Shall be fined under this title or imprisoned not more than ten years, or both.
This section shall not apply to any falsely made, forged, altered, counterfeited, or spurious representation of an obligation or other security of the United States or of an obligation, bond, certificate, security, treasury note, bill, promise to pay, or bank note, issued by any foreign government. This section also shall not apply to any falsely made, forged, altered, counterfeited, or spurious representation of any bank note or bill issued by a bank or corporation of any foreign country which is intended by the laws or usage of such country to circulate as money.
For purposes of this section, the term ''State'' includes a State of the United States, the District of Columbia, and any commonwealth, territory, or possession of the United States. 

18 U.S.C. Sec. 2315

Frauds and swindles

shall be fined not more than $1,000,000 or imprisoned not more than 30 years, or both. 

Sec. 1341. Frauds and swindles 

Whoever, having devised or intending to devise any scheme or artifice to defraud, or for obtaining money or property by means of false or fraudulent pretenses, representations, or promises, or to sell, dispose of, loan, exchange, alter, give away, distribute, supply, or furnish or procure for unlawful use any counterfeit or spurious coin, obligation, security, or other article, or anything represented to be or intimated or held out to be such counterfeit or spurious article, for the purpose of executing such scheme or artifice or attempting so to do, places in any post office or authorized depository for mail matter, any matter or thing whatever to be sent or delivered by the Postal Service, or deposits or causes to be deposited any matter or thing whatever to be sent or delivered by any private or commercial interstate carrier, or takes or receives therefrom, any such matter or thing, or knowingly causes to be delivered by mail or such carrier according to the direction thereon, or at the place at which it is directed to be delivered by the person to whom it is addressed, any such matter or thing, shall be fined under this title or imprisoned not more than five years, or both. If the violation affects a financial institution, such person shall be fined not more than $1,000,000 or imprisoned not more than 30 years, or both. 

18 U.S.C. 1341

Property used in violation of internal revenue laws

Loss of all property

Sec. 7302. Property used in violation of internal revenue laws 

It shall be unlawful to have or possess any property intended for use in violating the provisions of the internal revenue laws, or regulations prescribed under such laws, or which has been so used, and no property rights shall exist in any such property. A search warrant may issue as provided in chapter 205 of title 18 of the United States Code and the Federal Rules of Criminal Procedure for the seizure of such property. Nothing in this section shall in any manner limit or affect any criminal or forfeiture provision of the internal revenue laws, or of any other law. The seizure and forfeiture of any property under the provisions of this section and the disposition of such property subsequent to seizure and forfeiture, or the disposition of the proceeds from the sale of such property, shall be in accordance with existing laws or those hereafter in existence relating to seizures, forfeitures, and disposition of property or proceeds, for violation of the internal revenue laws. 

26 U.S.C. 7302

Civil damages for failure to release lien

(b) Damages

In any action brought under subsection (a), upon a finding of liability on the part of the defendant, the defendant shall be liable to the plaintiff in an amount equal to the sum of - 

(1) actual, direct economic damages sustained by the plaintiff which, but for the actions of the defendant, would not have been sustained, plus 

(2) the costs of the action.

(a) In general 

If any officer or employee of the Internal Revenue Service knowingly, or by reason of negligence, fails to release a lien under section 6325 on property of the taxpayer, such taxpayer may bring a civil action for damages against the United States in a district court of the United States.

 (c) Payment authority 

Claims pursuant to this section shall be payable out of funds appropriated under section 1304 of title 31, United States Code. 

(d) Limitations 

(1) Requirement that administrative remedies be exhausted 

A judgment for damages shall not be awarded under subsection 

(b) unless the court determines that the plaintiff has exhausted the administrative remedies available to such plaintiff within the Internal Revenue Service. 

(2) Mitigation of damages 

The amount of damages awarded under subsection (b)(1) shall be reduced by the amount of such damages which could have reasonably been mitigated by the plaintiff. 

(3) Period for bringing action 

Notwithstanding any other provision of law, an action to enforce liability created under this section may be brought without regard to the amount in controversy and may be brought only within 2 years after the date the right of action accrues. 

(e) Notice of failure to release lien 

The Secretary shall by regulation prescribe reasonable procedures for a taxpayer to notify the Secretary of the failure to release a lien under section 6325 on property of the taxpayer.

26 U.S.C. 7432

Continuing financial crimes enterprise

Shall be fined not more than $10,000,000 if an individual, or $20,000,000 if an organization, and imprisoned for a term of not less than 10 years and which may be life. 

(a) Whoever - 

  (1) organizes, manages, or supervises a continuing financial crimes enterprise; and\

  (2) receives $5,000,000 or more in gross receipts from such     enterprise during any 24-month period, shall be fined not more than $10,000,000 if an individual, or $20,000,000 if an organization, and imprisoned for a term of not less  than 10 years and which may be life.

(b) For purposes of subsection (a), the term ''continuing  financial crimes enterprise'' means a series of violations  under section 215, 656, 657, 1005, 1006, 1007, 1014,  1032, or 1344 of this title, or section 1341 or 1343  affecting a financial institution, committed by at least 4  persons acting in concert. 

18 U.S.C. 225

Slavery (of a financial nature)

Shall be fined under this title or imprisoned not more than 10 years, or both. 

Sec. 1581. Peonage; obstructing enforcement 

(a) Whoever holds or returns any person to a condition of peonage, or arrests any person with the intent of placing him in or returning him to a condition of peonage, shall be fined under this title or imprisoned not more than 10 years, or both. 

 (b) Whoever obstructs, or attempts to obstruct, or in any  way interferes with or prevents the enforcement of this section, shall be liable to the penalties prescribed in subsection (a). 

18 U.S.C. 1581;

Thirteenth Amendment;

197 U.S. 207, 215 (slavery for indebtedness);

240 U.S. 328 (compelled government labor)

Conflict of interest

Any justice, judge, or magistrate of the United States shall disqualify himself in any proceeding in which his impartiality might reasonably be questioned. 

(a) Any justice, judge, or magistrate of the United States shall disqualify himself in any proceeding in which his impartiality might reasonably be questioned. 

(b) He shall also disqualify himself in the following circumstances: 

   (1) Where he has a personal bias or prejudice concerning a party, or personal knowledge of disputed evidentiary facts concerning the proceeding; 

  (2) Where in private practice he served as lawyer in the matter in controversy, or a lawyer with whom he previously practiced law served during such association as a lawyer concerning the matter, or the judge or such lawyer has been a material witness concerning it; 

  (3) Where he has served in governmental employment and in such capacity participated as counsel, adviser or material witness concerning the proceeding or expressed an opinion concerning the merits of the particular case in  controversy; 

  (4) He knows that he, individually or as a fiduciary, or his spouse or minor child residing in his household, has a financial interest in the subject matter in controversy or in a party to the proceeding, or any other interest that could be substantially affected by the outcome of the  proceeding; 

  (5) He or his spouse, or a person within the third degree of      relationship to either of them, or the spouse of such a person: 

       (i) Is a party to the proceeding, or an officer, director, or             trustee of a party; 

     (ii) Is acting as a lawyer in the proceeding; 

       (iii) Is known by the judge to have an interest that could 

              be substantially affected by the outcome of the proceeding; 

      (iv) Is to the judge's knowledge likely to be a material  witness in the proceeding. 

(c) A judge should inform himself about his personal and fiduciary financial interests, and make a reasonable effort to inform himself about the personal financial interests of his spouse and minor children residing in his household. 

(d) For the purposes of this section the following words or phrases shall have the meaning indicated: 

  (1) ''proceeding'' includes pretrial, trial, appellate review,  or other stages of litigation; 

  (2) the degree of relationship is calculated according to the civil law system; 

  (3) ''fiduciary'' includes such relationships as executor,        administrator, trustee, and guardian; 

  (4) ''financial interest'' means ownership of a legal or equitable interest, however small, or a relationship as director, adviser, or other active participant in the affairs of a party, except that: 

       (i) Ownership in a mutual or common investment fund that holds securities is not a ''financial interest'' in such securities unless the judge participates in the management of the fund; 

       (ii) An office in an educational, religious, charitable, fraternal, or civic organization is not a ''financial interest'' in securities held by the organization; 

       (iii) The proprietary interest of a policyholder in a mutual insurance company, of a depositor in a mutual savings association, or a similar proprietary interest, is a ''financial interest'' in the organization only if the outcome of the proceeding could substantially affect the value of the interest; 

       (iv) Ownership of government securities is a ''financial          interest'' in the issuer only if the outcome of the proceeding could substantially affect the value of the securities. 

(e) No justice, judge, or magistrate shall accept from the parties to the proceeding a waiver of any ground for disqualification enumerated in subsection (b). Where the ground for disqualification arises only under subsection 

      (a), waiver may be accepted provided it is preceded by a full disclosure on the record of the basis for disqualification. 

(f) Notwithstanding the preceding provisions of this section, if any justice, judge, magistrate, or bankruptcy judge to  whom a matter has been assigned would be disqualified, after substantial judicial time has been devoted to the matter, because of the appearance or discovery, after the  matter was assigned to him or her, that he or she individually or as a fiduciary, or his or her spouse or minor child residing in his or her household, has a financial interest in a party (other than an interest that  could be substantially affected by the outcome), disqualification is not required if the justice, judge, magistrate, bankruptcy judge, spouse or minor child, as the case may be, divests himself or herself of the interest  that provides the grounds for the disqualification. 

28 U.S.C. 455