
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC7205]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                Subtitle F--Procedure and Administration
 
           CHAPTER 75--CRIMES, OTHER OFFENSES, AND FORFEITURES
 
                          Subchapter A--Crimes
 
                       PART I--GENERAL PROVISIONS
 
Sec. 7205. Fraudulent withholding exemption certificate or 
        failure to supply information
        

(a) Withholding on wages

    Any individual required to supply information to his employer under 
section 3402 who willfully supplies false or fraudulent information, or 
who willfully fails to supply information thereunder which would require 
an increase in the tax to be withheld under section 3402, shall, in 
addition to any other penalty provided by law, upon conviction thereof, 
be fined not more than $1,000, or imprisoned not more than 1 year, or 
both.

(b) Backup withholding on interest and dividends

    If any individual willfully makes a false certification under 
paragraph (1) or (2)(C) of section 3406(d), then such individual shall, 
in addition to any other penalty provided by law, upon conviction 
thereof, be fined not more than $1,000, or imprisoned not more than 1 
year, or both.

(Aug. 16, 1954, ch. 736, 68A Stat. 852; Pub. L. 89-368, title I, 
Sec. 101(e)(5), Mar. 15, 1966, 80 Stat. 62; Pub. L. 97-34, title VII, 
Sec. 721(b), Aug. 13, 1981, 95 Stat. 341; Pub. L. 97-248, title III, 
Secs. 306(b), 308(a), Sept. 3, 1982, 96 Stat. 588, 591; Pub. L. 98-67, 
title I, Secs. 102(a), 107(b), Aug. 5, 1983, 97 Stat. 369, 382; Pub. L. 
98-369, div. A, title I, Sec. 159(a), July 18, 1984, 98 Stat. 696; Pub. 
L. 101-239, title VII, Sec. 7711(b)(2), Dec. 19, 1989, 103 Stat. 2393.)


                               Amendments

    1989--Subsec. (b). Pub. L. 101-239 amended subsec. (b) generally. 
Prior to amendment, subsec. (b) read as follows: ``If any individual 
willfully makes--
        ``(1) any false certification or affirmation on any statement 
    required by a payor in order to meet the due diligence requirements 
    of section 6676(b), or
        ``(2) a false certification under paragraph (1) or (2)(C) of 
    section 3406(d),
then such individual shall, in addition to any other penalty provided by 
law, upon conviction thereof, be fined not more than $1,000, or 
imprisoned not more than 1 year, or both.''
    1984--Pub. L. 98-369 in subsecs. (a) and (b) substituted ``in 
addition to'' for ``in lieu of'' and struck out reference to penalty 
under section 6682 after ``penalty provided by law''.
    1983--Pub. L. 98-67 designated existing provisions as subsec. (a), 
added subsec. (b), and repealed amendments made by Pub. L. 97-248. See 
1982 Amendment note below.
    1982--Pub. L. 97-248 provided that, applicable to payments of 
interest, dividends, and patronage dividends paid or credited after June 
30, 1983, this section is amended by designating the existing provisions 
as subsec. (a) with a heading of ``Withholding on wages'', and by adding 
a new subsec. (b). Section 102(a), (b) of Pub. L. 98-67, title I, Aug. 
5, 1983, 97 Stat. 369, repealed subtitle A (Secs. 301-308) of title III 
of Pub. L. 97-248 as of the close of June 30, 1983, and provided that 
the Internal Revenue Code of 1954 [now 1986] [this title] shall be 
applied and administered (subject to certain exceptions) as if such 
subtitle A (and the amendments made by such subtitle A) had not been 
enacted. Subsec. (b), referred to above, read as follows:
  ``(b) Withholding of interest and dividends
        ``Any person who--
            ``(1) willfully files an exemption certificate with any 
        payor under section 3452(f)(1)(A), which is known by him to be 
        fraudulent or to be false as to any material matter, or
            ``(2) is required to furnish notice under section 
        3452(f)(1)(B), and willfully fails to furnish such notice in the 
        manner and at the time required pursuant to section 
        3452(f)(1)(B) or the regulations prescribed thereunder,
    shall, in lieu of any penalty otherwise provided, upon conviction 
    thereof, be fined not more than $500, or imprisoned not more than 1 
    year, or both.''

    1981--Pub. L. 97-34 substituted ``$1,000'' for ``$500''.
    1966--Pub. L. 89-368 substituted ``section 3402'' and ``any other 
penalty provided by law (except the penalty provided by section 6682)'' 
for ``section 3402(f)'' and ``any penalty otherwise provided'' 
respectively.


                    Effective Date of 1989 Amendment

    Amendment by Pub. L. 101-239 applicable to returns and statements 
the due date for which (determined without regard to extensions) is 
after Dec. 31, 1989, see section 7711(c) of Pub. L. 101-239, set out as 
a note under section 6721 of this title.


                    Effective Date of 1984 Amendment

    Section 159(b) of Pub. L. 98-369 provided that: ``The amendments 
made by this section [amending this section] shall apply to actions and 
failures to act occurring after the date of the enactment of this Act 
[July 18, 1984].''


                    Effective Date of 1983 Amendment

    Amendment by section 107(b) of Pub. L. 98-67 effective Aug. 5, 1983, 
see section 110(c) of Pub. L. 98-67, set out as a note under section 31 
of this title.


                    Effective Date of 1981 Amendment

    Amendment by Pub. L. 97-34 applicable to acts and failures to act 
after Dec. 31, 1981, see section 721(d) of Pub. L. 97-34, set out as a 
note under section 6682 of this title.

                  Section Referred to in Other Sections

    This section is referred to in section 3406 of this title; title 7 
section 12a.
