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Delaware Tax Fraud and Tax Evasion Laws

Under Delaware's tax code section 571, it is illegal to willfully attempt, in any manner, to evade or defeat a tax. In other words, it is illegal to commit, or attempt to commit, tax evasion. Tax evasion is a broad term that encompasses the criminal act of tax fraud. The table below outlines Delaware's main tax fraud laws.

Code Section

Delaware Code section 574: Fraud and False Statements

What's Prohibited?

 

  • Willfully making any return, statement, or other document which contains a written declaration that it is made under the penalties of perjury, and which the person doesn't believe to be true and correct as to every material matter
  • Willfully aiding or assisting in, or procuring, counseling, or advising the preparation or presentation of a return, affidavit, claim, or other document which is fraudulent or false as to any material matter, whether or not the falsity or fraud is done with the knowledge or consent of the person authorized or required to submit the document at issue
  • Fraudulently signing or procuring a bond, permit, entry, or other document
  • Procuring a bond, permit, entry, or other document that was falsely or fraudulently executed, or advising or aiding in the execution of such a document, or
  • Removing, depositing, or concealing any goods or commodities with the intent to evade or defeat the assessment or collection of a tax

Penalties

Tax fraud is a class E felony.

Statute of Limitations

There is a statute of limitations, or a time limit, on when a case can be brought for tax fraud or tax evasion in Delaware. Any person who commits tax fraud or tax evasion in Delaware must be prosecuted within six years of the commission of the offense.

Federal Tax Evasion Law

Under federal law it is also illegal to attempt to evade or defeat a tax. Any person who willfully attempts in any manner to evade or defeat any federal tax is guilty of a felony and will be punished by a fined up to $100,000 ($500,000 in the case of a corporation), and/or imprisonment for up to five years.

Additional Resources

State laws change frequently. For case specific information regarding Delaware's tax fraud and tax evasion laws contact a local criminal defense lawyer or tax attorney.

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