Key Takeaways Tax evasion (IRC § 7201) carries up to 5 years in prison and $250,000 in fines per count The average prison sentence for tax violations is 40-44 months Federal sentencing guidelines use a "tax loss" calculation to determine recommended sentence length Collateral consequences include loss of professional licenses, immigration impacts, and difficulty finding employment Restitution (paying back the full tax loss) is typically ordered in addition to fines and imprisonment Statutory Penalties for Federal tax violations The Internal Revenue Code and Title 18 of the United States Code contain numerous complex tax provisions. Here are the most commonly charged offenses and their statutory maximums: Offense Code Section Max Prison Max Fine (Individual) Max Fine (Corp.) Tax Evasion IRC § 7201 5 years $250,000 $500,000 Filing False Return IRC § 7206(1) 3 years $250,000 $500,000 Aiding False Return IRC § 7206(2) 3 years $250,000 $500,000 Willful Failure to File IRC § 7203 1 year $100,000 $200,000 Willful Failure to Pay Employment Tax IRC § 7202 5 years $250,000 $500,000 Tax Fraud Conspiracy 18 USC § 371 5 years $250,000 $500,000 Willful FBAR Violation 31 USC § 5322 5 years $250,000 $500,000 Obstruction of IRS IRC § 7212(a) 3 years $250,000 $500,000 Federal Sentencing Guidelines While judges have discretion in sentencing, federal sentencing guidelines provide a framework that strongly influences the actual sentence imposed. For tax violations, the most important factor is the "tax loss" — the total amount of tax the defendant evaded or attempted to evade. Tax Loss Table Tax Loss Amount Base Offense Level Guideline Range (Complex History I) $6,500 - $15,000 8 0-6 months $15,000 - $40,000 10 6-12 months $40,000 - $100,000 12 10-16 months $100,000 - $250,000 14 15-21 months $250,000 - $550,000 16 21-27 months $550,000 - $1,500,000 18 27-33 months $1,500,000 -...