When the Internal Revenue Service suspects that tax evasion or fraud has occurred, they conduct an investigation through their Criminal Investigation Unit. If they find that you have evaded taxes or fraudulent filed taxes, you will be subject to punishment and penalties under Title 26 of the Internal Revenue Code and Title 18 of the United States Code. According to the Internal Revenue Service, of the nearly 1200 cases that have been initiated, roughly 770 have been sentenced with an incarceration rate of 76%, meaning that if found guilty and handed down a sentence, there is an overwhelming chance that the wrongdoer will either serve time in a federal prison, halfway home, on home arrest or ant combination thereof. Conviction under Title 18 of the United States Code can result in criminal penalties such as imprisonment of up to 5 years or fines of up to $250,000, depending on the conviction. 18 USC 371. Title 26 of the Internal Revenue Code contains a number of titles under which an individual or corporation may be prosecuted, including: Attempt to evade or defeat tax, Section 7201; Willful failure to collect or pay over tax, Section 7202; Willful failure to file return, supply information, or pay tax, Section 7203; Providing false statements or fraud, Section 7206(2); and Attempts to interfere with administration of IRS, section 7212(A).