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U.S. Federal Income Tax

Subjugation by taxation

Penalty Statutes for Willful Failure to Execute a Required Duty

Table of Contents

Internal Revenue Code
CHAPTER 75 - CRIMES, OTHER OFFENSES, AND FORFEITURES
Subchapter A - Crimes
PART I - GENERAL PROVISIONS

        The following four sections of the IRC are found in chapter 75.  (Highlighted in red to show important connections between the chapter 75 IRC penalty statutes and the ever so important definition section.)

Internal Revenue Code
Sec. 7201. Attempt to evade or defeat tax

Any person who willfully attempts in any manner to evade or defeat any tax imposed by this title or the payment thereof shall, in addition to other penalties provided by law, be guilty of a felony and, upon conviction thereof, [shall have bad things happen blah, blah.]

        Bad things can only happen if there is, in fact, actually a tax imposed upon the person named by the IRC.  This IRC section does NOT create the duty listed.

Internal Revenue Code
Sec. 7202. Willful failure to collect or pay over tax

Any person required under this title to collect, account for, and pay over any tax imposed by this title who willfully fails to collect or truthfully account for and pay over such tax shall, in addition to other penalties provided by law, be guilty of a felony and, upon conviction thereof, [shall have bad things happen blah, blah.]

        Bad things can only happen if there is, in fact, actually a requirement by the IRC upon the person named to collect, account for, and pay over any tax.  This IRC section does NOT create the duty listed.

Internal Revenue Code
Sec. 7203. Willful failure to file return, supply information, or
pay tax

Any person required under this title to pay any estimated tax or tax, or required by this title or by regulations made under authority thereof to make a return, keep any records, or supply any information, who willfully fails to pay such estimated tax or tax, make such return, keep such records, or supply such information, at the time or times required by law or regulations, shall, in addition to other penalties provided by law, be guilty of a misdemeanor and, upon conviction thereof,  [shall have bad things happen blah, blah.]

        Bad things can only happen if there is, in fact, actually a requirement by the IRC upon the person named to pay a tax.  This IRC section does NOT create the duty listed.

        In this next IRC section, we are going to look at the person(s) to whom the above penalty statutes apply.

TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 75 - CRIMES, OTHER OFFENSES, AND FORFEITURES
Subchapter D - Miscellaneous Penalty and Forfeiture Provisions
Sec. 7343. Definition of term "person"

The [statutory] term "person" as used in this chapter includes an officer or employee of a corporation, or a member or employee of a partnership, who as such officer, employee, or member is under a duty to perform the act in respect of which the violation occurs.

          The "person" named by statute, to which the chapter 75 penalty statutes apply, are:

  • An officer of a corporation who as such officer is under a duty to perform the required act;
  • An employee of a corporation who as such employee is under a duty to perform the required act;
  • A member of a partnership who as such partner is under a duty to perform the required act;
  • An employee of a partnership who as such employee is under a duty to perform the required act.

        Do you see an individual in their private capacity?  Do you see an individual NOT in their capacity as an officer, partner, or employee?

        To argue that includes is a word of expansion is to argue that the term expands to include individuals that are already contained within the generic meaning of the word "person".  If the generic meaning of the word person is meant, there would be no need for expansion. 

        If officers, partners, and employees are NOT persons until IRC section 7343 activates, then neither are you and I.  And if it takes the activation of this IRC section to bring the listed officers, partners, and employees within the term person, it will likewise take the activation of a statute to just as specifically bring you and I within the term.

        The root word of includes means to enclose. Much like the fence of a corral includes (encloses) the herd of horses, the term "person" includes (encloses) the specific officers, partners, and employees listed.  Unless used with supporting words such as "includes but is not limited to" or "also includes", the term includes is a word of limitation. 

        Elsewhere on this web site is an expansive examination of the words includes and including however, this section's use of the word includes trumps all the other examinations of the words includes and including to show just how limiting the word actually is.

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