Tax evasion is the criminal offense of a person or entity using illegal methods to avoid paying the person or entity’s true tax liability. The Internal Revenue Code—a federal statute located in the United States Code—states that “[a]ny 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 be fined not more than $100,000 ($500,000 in the case of a corporation), or imprisoned not more than 5 years, or both, together with the costs of prosecution.” 26 U.S.C. §7201.

Tax evasion is also a criminal offense under state law when a person or en,tity uses illegal methods to avoid paying state income, property, sales, franchise, payroll, and other taxes.

In New Hampshire, tax evasion is considered a serious criminal offense both at the federal and state level. Federally, under 26 U.S.C. §7201, any individual or entity that willfully attempts to evade or defeat any tax imposed by the Internal Revenue Code may be charged with a felony. Penalties can include a fine of up to $100,000 for individuals ($500,000 for corporations), imprisonment for up to 5 years, or both, along with the costs of prosecution. While New Hampshire does not have a general state income tax or sales tax, it does impose taxes such as property taxes, business taxes, and interest and dividends taxes. Evading these state taxes would also constitute a criminal offense under state law. The specific statutes and penalties for state tax evasion in New Hampshire would be detailed in the state's tax code and enforced by the New Hampshire Department of Revenue Administration. An attorney specializing in tax law could provide detailed guidance on the matter and represent individuals or entities accused of tax evasion.