Under the tax law, taxpayers may be subject to both civil and criminal penalties for underpaying their tax liability (e.g., due to fraud).

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This is true. Underpaying taxes due to fraud can lead to both civil and criminal penalties under the tax law. Civil penalties typically involve fines and repayment of taxes along with interest, while criminal penalties can result in fines, imprisonment, or both.

Under the Tax Law, Taxpayers May Be Subject to Both