26 USC 7212: Interference With Tax Law Administration
An analysis of 26 USC 7212, the federal law prohibiting the obstruction of tax administration, from direct threats to more subtle corrupt endeavors.
Federal law safeguards the administration of the U.S. tax system from interference. The statute 26 U.S.C. § 7212 criminalizes actions aimed at obstructing or impeding the administration of internal revenue laws. This protects the physical safety of Internal Revenue Service (IRS) personnel and maintains the integrity of the tax assessment and collection process against threats, force, and corrupt actions.
Interference with Federal Officers and Tax Administration
Subsection (a) directly addresses corrupt or forcible attempts to interfere with federal tax administration. One of its prohibitions makes it a crime to intimidate or impede any officer or employee of the United States acting in an official capacity under the tax code. This can include direct physical actions or explicit threats of bodily harm made against an IRS agent or their family, such as threatening an agent during an audit.
The statute also contains a broader “Omnibus Clause,” which criminalizes any act that “corruptly or by force or threats of force… obstructs or impede, or endeavors to obstruct or impede, the due administration” of the tax code. The word “corruptly” is defined by courts as acting with the intent to secure an unlawful advantage or benefit.
For a violation to occur, the government must prove the obstructive conduct was linked to a specific, pending IRS action, like an audit. The clause does not apply to actions that merely interfere with general tax administration. Examples of such conduct include hiding records sought by the IRS or instructing a witness to provide false information. The term “endeavors” means any attempt, so the government does not have to prove it was successful.
Forcible Rescue of Seized Property
Subsection (b) establishes the offense of forcible rescue of seized property, making it illegal to rescue, or attempt to rescue, any property after it has been lawfully seized by the IRS to satisfy a tax debt. A legal seizure occurs when the IRS takes possession of an asset, such as a personal vehicle, funds held in a bank account, or real estate.
The “forcible” nature of the rescue is a primary element of this offense. This implies the use of force to retake the property, distinguishing it from a legal challenge to the seizure, such as filing a claim with the IRS or initiating a wrongful levy suit in court.
A violation involves a taxpayer physically taking back an asset that is under IRS control. For example, if the IRS places an official seizure tag on a vehicle and the owner uses a tow truck to move it to a hidden location to prevent its sale, that action would constitute a forcible rescue.
Penalties for Violation
Penalties are specific to the subsection under which a person is convicted. A violation of subsection (a), covering corrupt or forcible interference, is a felony. A conviction under this provision faces a fine of up to $5,000 and imprisonment for up to three years. If the offense was committed using only threats of force, the penalties are reduced to a maximum fine of $3,000 and imprisonment of not more than one year.
Under the Criminal Fine Enforcement Act of 1984, the maximum fines for these felonies were increased. For offenses committed after December 31, 1984, the maximum fine for an individual is $250,000 and $500,000 for a corporation. An alternative fine may be imposed, calculated as not more than twice the gross financial gain from the offense or twice the pecuniary loss suffered by another party.
A conviction for the forcible rescue of seized property under subsection (b) carries different penalties. This offense can result in a fine of up to $500 or double the value of the rescued property, whichever is greater. In addition, a person convicted may be imprisoned for up to two years.