Obstruction of the Internal Revenue Laws

Obstruction of internal revenue laws—sometimes called the “Omnibus Clause”—is one of the IRS’s and DOJ’s most flexible enforcement tools. The statute makes it a felony to corruptly obstruct or impede the due administration of the Internal Revenue Code. Prosecutors often use it when they believe someone interfered with an IRS audit, investigation, or collection effort.

What is Obstruction of Internal Revenue Laws?

Under 26 U.S.C. 7212(a), it is a crime to “corruptly” obstruct or impede, or attempt to obstruct or impede, the administration of the Internal Revenue Code.

The statute has been used in cases where the government claims the defendant:

  • Hid or destroyed records during an audit

  • Submitted false documents to an IRS agent

  • Encouraged others to lie to investigators

  • Interfered with IRS summons enforcement

  • Engaged in schemes designed to conceal income or assets after learning of an IRS investigation

Common Examples

Prosecutors have brought obstruction charges in cases involving:

  • False documents: creating or submitting sham invoices or contracts during an audit.

  • Witness interference: coaching employees or clients to give false statements to IRS-CI agents.

  • Asset concealment: moving funds offshore after an IRS summons issues.

  • Threats or intimidation: attempting to deter IRS agents from conducting audits or investigations.

  • Tax shelter promotion: taking steps to cover up or disguise the true purpose of a shelter once the IRS begins investigating.

Why These Cases Are Serious

  • Felony Offense: conviction carries up to 3 years in prison, fines, and restitution

  • Broad Scope: The statute allows prosecutors to charge obstruction in broad range of circumstances even where no other tax crime is charged

  • Add-On Charge: DOJ often layers obstruction on top of tax evasion, conspiracy, or false return charges, potentially increasing exposure.

Because obstruction of internal revenue laws under 26 U.S.C. § 7212(a) is a catch-all statute, it’s one of the government’s most flexible—and most dangerous—tools. It can be charged when prosecutors believe someone interfered with the IRS’s ability to assess or collect tax, even indirectly. That same breadth, however, gives the defense room to fight: by showing there was no corrupt intent, no actual interference, or that the conduct was simply the lawful exercise of rights—like challenging an audit, asserting privilege, or declining to waive confidentiality. When the stakes are high, Mendoza Defense is here to help.