26 USC 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
Terms Used In 26 USC 7341
- Fraud: Intentional deception resulting in injury to another.
- person: as used in this chapter includes an officer or employee of a corporation, or a member or employee of a partnership, who as such officer, employee, or member is under a duty to perform the act in respect of which the violation occurs. See 26 USC 7343
- United States: when used in a geographical sense includes only the States and the District of Columbia. See 26 USC 7701
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.