26 U.S.C. § 7341
Section 7341 · Penalty for sales to evade tax
Amended 1 time on record
Applied in 7 court decisions — leading case 209 F. Supp. 2d 863 - Ploog v. HomeSide Lending, Inc. (2002)
Most recently applied in 816 F. Supp. 2d 778 - Cooper v. Federal Aviation Administration (August 2008)
How often courts cite this section
Court decisions citing this, by year.Markers show enactment, consequential amendments, and circuit splits over this section — watch for a citation surge after a change or a disagreement. The dip in the last several years is a data-coverage gap, not a real trend — our corpus holds fewer opinions from the most recent years, so recent citations are undercounted.
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.
If such property has been paid for, in whole or in part, the sum so paid shall be deemed forfeited.
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.
Editorial notes U.S. Code · Office of the Law Revision Counsel
References in Text
The internal revenue laws, referred to in subsec. (a), are classified generally to this title.
Cross References
Jurisdiction of district court of the United States of proceedings for recovery or enforcement of forfeitures, see section 1355 of Title 28, Judiciary and Judicial Procedure.