West Virginia Tax Fraud and Tax Evasion Laws

The following acts constite tax fraud or evasion:

• Failing to pay taxes or file a tax return or report more than 30 days after the due date
• Knowingly filing a false or fraudulent return, report, or other tax document
• Knowingly delivering/disclosing a false document in order to assist in the collection of an improper credit, refund, deduction, or exemption
• Failing to collect or withhold a tax
• Willfully failing to maintain tax records or supply tax information
• Misusing a tax exemption
• Aiding a person in committing tax fraud or evasion
• A person who is required to, but fails to do any of the following on behalf of the third party: collect, withhold, account for, or pay taxes

Failing to pay taxes or file a tax return or report is a misdemeanor punishable by up to $2,500 in fines. Each failure is a separate offense.

Knowingly filing a false return or other tax document, assisting in disclosing or delivering a filing a false return or document, or otherwise evading taxes is a felony punishable by up to 3 years in prison and up to $10,000 in fines.

Failing to collect, withhold, account for, or pay tax on behalf of another person is a felony if the amount unpaid is $1,000 or more and punishable by up to 3 years in prison and up to $25,000 in fines. If the amount is under $1,000, it is a misdemeanor punishable by up to 6 months in prison and up to $5,000 in fines. Each failure is a separate offense.

Failing to collect or withhold a tax is a misdemeanor punishable by up to 6 month in prison and up to $500 in fines. Each month or fraction thereof during which the tax is not collected or withheld is a separate offense.

Failing to maintain tax records or supply tax information, misusing a tax exemption, and aiding a person in committing tax fraud or evasion are misdemeanors punishable by up to 6 months in prison and up to $1,000 in fines.