Internal Revenue Code · 26 U.S.C.
§ 7341. Penalty for sales to evade tax
Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).
Cite as 26 U.S.C. § 7341
At a glance
Read from the text, the source credit and the official notes. Not part of the law.
- Status
- In force
- Length
- 3 subsections · 171 words · about 1 min to read
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.
If such property has been paid for, in whole or in part, the sum so paid shall be deemed forfeited.
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.)
Where it sits in the Code
- Subtitle F Procedure and Administration
- Chapter 75 CRIMES, OTHER OFFENSES, AND FORFEITURES
- Subchapter D Miscellaneous Penalty and Forfeiture Provisions