# § 7205. Fraudulent withholding exemption certificate or failure to supply information
**(a)** **Withholding on wages** Any individual required to supply information to his employer under section 3402 who willfully supplies false or fraudulent information, or who willfully fails to supply information thereunder which would require an increase in the tax to be withheld under section 3402, shall, in addition to any other penalty provided by law, upon conviction thereof, be fined not more than $1,000, or imprisoned not more than 1 year, or both.
**(b)** **Backup withholding on interest and dividends** If any individual willfully makes a false certification under paragraph (1) or (2)(C) of section 3406(d), then such individual shall, in addition to any other penalty provided by law, upon conviction thereof, be fined not more than $1,000, or imprisoned not more than 1 year, or both.
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**Source Credit**: (Aug. 16, 1954, ch. 736, 68A Stat. 852; Pub. L. 89–368, title I, § 101(e)(5), Mar. 15, 1966, 80 Stat. 62; Pub. L. 97–34, title VII, § 721(b), Aug. 13, 1981, 95 Stat. 341; Pub. L. 97–248, title III, §§ 306(b), 308(a), Sept. 3, 1982, 96 Stat. 588, 591; Pub. L. 98–67, title I, §§ 102(a), 107(b), Aug. 5, 1983, 97 Stat. 369, 382; Pub. L. 98–369, div. A, title I, § 159(a), July 18, 1984, 98 Stat. 696; Pub. L. 101–239, title VII, § 7711(b)(2), Dec. 19, 1989, 103 Stat. 2393.)
## Editorial Notes
### Amendments
1989—Subsec. (b). amended subsec. (b) generally. Prior to amendment, subsec. (b) read as follows: “If any individual willfully makes—
“(1) any false certification or affirmation on any statement required by a payor in order to meet the due diligence requirements of section 6676(b), or
“(2) a false certification under paragraph (1) or (2)(C) of section 3406(d),
then such individual shall, in addition to any other penalty provided by law, upon conviction thereof, be fined not more than $1,000, or imprisoned not more than 1 year, or both.”
1984— in subsecs. (a) and (b) substituted “in addition to” for “in lieu of” and struck out reference to penalty under section 6682 after “penalty provided by law”.
1983— designated existing provisions as subsec. (a), added subsec. (b), and repealed amendments made by . See 1982 Amendment note below.
1982— provided that, applicable to payments of interest, dividends, and patronage dividends paid or credited after , this section is amended by designating the existing provisions as subsec. (a) with a heading of “Withholding on wages”, and by adding a new subsec. (b). Section 102(a), (b) of , , , repealed subtitle A (§§ 301–308) of title III of as of the close of , and provided that the Internal Revenue Code of 1954 [now 1986] [this title] shall be applied and administered (subject to certain exceptions) as if such subtitle A (and the amendments made by such subtitle A) had not been enacted. Subsec. (b), referred to above, read as follows:
“Any person who—
“(1) willfully files an exemption certificate with any payor under section 3452(f)(1)(A), which is known by him to be fraudulent or to be false as to any material matter, or
“(2) is required to furnish notice under section 3452(f)(1)(B), and willfully fails to furnish such notice in the manner and at the time required pursuant to section 3452(f)(1)(B) or the regulations prescribed thereunder,
shall, in lieu of any penalty otherwise provided, upon conviction thereof, be fined not more than $500, or imprisoned not more than 1 year, or both.”
1981— substituted “$1,000” for “$500”.
1966— substituted “section 3402” and “any other penalty provided by law (except the penalty provided by section 6682)” for “section 3402(f)” and “any penalty otherwise provided” respectively.
## Statutory Notes and Related Subsidiaries
### Effective Date of 1989 Amendment
Amendment by applicable to returns and statements the due date for which (determined without regard to extensions) is after , see , set out as a note under .
### Effective Date of 1984 Amendment
> “The amendments made by this section [amending this section] shall apply to actions and failures to act occurring after the date of the enactment of this Act [
>
> ].”
, , , provided that:
### Effective Date of 1983 Amendment
Amendment by effective , see , set out as a note under .
### Effective Date of 1981 Amendment
Amendment by applicable to acts and failures to act after , see , set out as a note under .