
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC7341]

 
                     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. 7341. Penalty for sales to evade tax


(a) Nonenforceability of contract

    Whenever any person who is liable to pay any tax imposed by this 
title upon, for, or in respect of, any property sells or causes or 
allows the same to be sold before such tax is paid, with intent to avoid 
such tax, or in fraud of the internal revenue laws, any debt contracted 
in such sale, and any security given therefor, unless the same shall 
have been bona fide transferred to an innocent holder, shall be void, 
and the collection thereof shall not be enforced in any court.

(b) Forfeiture of sum paid on contract

    If such property has been paid for, in whole or in part, the sum so 
paid shall be deemed forfeited.

(c) Moiety

    Any person who shall sue for the sum so paid (in an action of debt) 
shall recover from the seller the amount so paid, one-half to his own 
use and the other half to the use of the United States.

(Aug. 16, 1954, ch. 736, 68A Stat. 872.)
