26 U.S.C. § 6696 — Rules applicable with respect to sections

Page 3801 TITLE 26—INTERNAL REVENUE CODE § 6696 208(h) of Pub. L. 113–295, set out as a note under section 6651 of this title. EFFECTIVE DATE OF 2011 AMENDMENT Amendment by Pub. L. 112–41 applicable to returns required to be filed after Dec. 31, 2011, see section 501(b) of Pub. L. 112–41, set out in a note under section 3805 of Title 19, Customs Duties. EFFECTIVE DATE OF 2007 AMENDMENT Amendment by Pub. L. 110–28 applicable to returns prepared after May 25, 2007, see section 8246(c) of Pub. L. 110–28, set out as a note under section 6060 of this title. EFFECTIVE DATE OF 1997 AMENDMENT Amendment by Pub. L. 105–34 applicable to taxable years beginning after Dec. 31, 1996, see section 1085(e)(1) of Pub. L. 105–34, set out as a note under section 32 of this title. EFFECTIVE DATE OF 1989 AMENDMENT Pub. L. 101–239, title VII, § 7733(e), Dec. 19, 1989, 103 Stat. 2403, provided that: ‘‘The amendments made by this section [amending this section] shall apply to doc- uments prepared after December 31, 1989.’’ EFFECTIVE DATE OF 1985 AMENDMENT Amendment by Pub. L. 99–44 effective as if included in the amendments made by section 179(b) of Pub. L. 98–369, see section 6(a) of Pub. L. 99–44, set out as a note under section 274 of this title. EFFECTIVE DATE OF 1984 AMENDMENT Amendment by Pub. L. 98–369 applicable to taxable years beginning after Dec. 31, 1984, see section 179(d)(2) of Pub. L. 98–369, set out as an Effective Date note under section 280F of this title. EFFECTIVE DATE OF 1978 AMENDMENT Pub. L. 95–600, title VII, § 701(cc)(3), Nov. 6, 1978, 92 Stat. 2924, provided that: ‘‘The amendments made by this subsection [amending this section and section 7701 of this title] shall apply to documents prepared after December 31, 1976.’’ REPEAL OF REGULATIONS COVERING SUBSTANTIATION BY ADEQUATE CONTEMPORANEOUS RECORDS Regulations issued before May 24, 1985, to carry out the amendment of subsec. (b) of this section by section 179(b)(2) of Pub. L. 98–369 to have no force and effect, see section 1(c) of Pub. L. 99–44, set out as a note under section 274 of this title. § 6695A. Substantial and gross valuation misstatements attributable to incorrect ap- praisals (a) Imposition of penalty If— (1) a person prepares an appraisal of the value of property and such person knows, or reasonably should have known, that the ap- praisal would be used in connection with a re- turn or a claim for refund, and (2) the claimed value of the property on a re- turn or claim for refund which is based on such appraisal results in a substantial valu- ation misstatement under chapter 1 (within the meaning of section 6662(e)), a substantial estate or gift tax valuation understatement (within the meaning of section 6662(g)), or a gross valuation misstatement (within the meaning of section 6662(h)), with respect to such property, then such person shall pay a penalty in the amount determined under subsection (b). (b) Amount of penalty The amount of the penalty imposed under sub- section (a) on any person with respect to an ap- praisal shall be equal to the lesser of— (1) the greater of— (A) 10 percent of the amount of the under- payment (as defined in section 6664(a)) at- tributable to the misstatement described in subsection (a)(2), or (B) $1,000, or (2) 125 percent of the gross income received by the person described in subsection (a)(1) from the preparation of the appraisal. (c) Exception No penalty shall be imposed under subsection (a) if the person establishes to the satisfaction of the Secretary that the value established in the appraisal was more likely than not the prop- er value. (Added Pub. L. 109–280, title XII, § 1219(b)(1), Aug. 17, 2006, 120 Stat. 1084; amended Pub. L. 110–172, §§ 3(e)(1), 11(a)(40), Dec. 29, 2007, 121 Stat. 2474, 2488.) Editorial Notes CODIFICATION Section 1219(b)(1) of Pub. L. 109–280, which directed the addition of section 6695A at the end of part I of sub- chapter B of chapter 68, without specifying the act to be amended, was executed by adding section 6695A at the end of part I of subchapter B of chapter 68 of this title, which consists of the Internal Revenue Code of 1986, to reflect the probable intent of Congress. AMENDMENTS 2007—Subsec. (a). Pub. L. 110–172, § 11(a)(40), des- ignated the words ‘‘then such person shall pay a pen- alty in the amount determined under subsection (b).’’, appearing in par. (2), as concluding provisions of sub- sec. (a). Subsec. (a)(2). Pub. L. 110–172, § 3(e)(1), inserted ‘‘a substantial estate or gift tax valuation understatement (within the meaning of section 6662(g)),’’ before ‘‘or a gross valuation misstatement’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2007 AMENDMENT Amendment by section 3(e)(1) of Pub. L. 110–172 effec- tive as if included in the provisions of the Pension Pro- tection Act of 2006, Pub. L. 109–280, to which such amendment relates, see section 3(j) of Pub. L. 110–172, set out as a note under section 170 of this title. EFFECTIVE DATE Section applicable to appraisals prepared with re- spect to returns or submissions filed after Aug. 17, 2006, with special rule for certain easements, see section 1219(e)(2), (3) of Pub. L. 109–280, set out as an Effective Date of 2006 Amendments note under section 170 of this title. § 6696. Rules applicable with respect to sections 6694, 6695, and 6695A (a) Penalties to be additional to any other pen- alties The penalties provided by sections 6694, 6695, and 6695A shall be in addition to any other pen- alties provided by law. Page 3802 TITLE 26—INTERNAL REVENUE CODE [§ 6697 (b) Deficiency procedures not to apply Subchapter B of chapter 63 (relating to defi- ciency procedures for income, estate, gift, and certain excise taxes) shall not apply with re- spect to the assessment or collection of the pen- alties provided by sections 6694, 6695, and 6695A. (c) Procedure for claiming refund Any claim for credit or refund of any penalty paid under section 6694, 6695, or 6695A shall be filed in accordance with regulations prescribed by the Secretary. (d) Periods of limitation (1) Assessment The amount of any penalty under section 6694(a), 6695, or 6695A shall be assessed within 3 years after the return or claim for refund with respect to which the penalty is assessed was filed, and no proceeding in court without assessment for the collection of such tax shall be begun after the expiration of such period. In the case of any penalty under section 6694(b), the penalty may be assessed, or a pro- ceeding in court for the collection of the pen- alty may be begun without assessment, at any time. (2) Claim for refund Except as provided in section 6694(d), any claim for refund of an overpayment of any penalty assessed under section 6694, 6695, or 6695A shall be filed within 3 years from the time the penalty was paid. (e) Definitions For purposes of sections 6694, 6695, and 6695A— (1) Return The term ‘‘return’’ means any return of any tax imposed by this title, any administrative adjustment request under section 6227, and any partnership adjustment tracking report under section 6226(b)(4)(A). (2) Claim for refund The term ‘‘claim for refund’’ means a claim for refund of, or credit against, any tax im- posed by this title. (Added Pub. L. 94–455, title XII, § 1203(f), Oct. 4, 1976, 90 Stat. 1693; amended Pub. L. 109–280, title XII, § 1219(b)(2), Aug. 17, 2006, 120 Stat. 1084; Pub. L. 110–28, title VIII, § 8246(a)(2)(H), May 25, 2007, 121 Stat. 202; Pub. L. 110–172, § 3(e)(2), Dec. 29, 2007, 121 Stat. 2474; Pub. L. 115–141, div. U, title II, § 206(n)(3), title IV, § 401(a)(311), (312), Mar. 23, 2018, 132 Stat. 1182, 1199.) Editorial Notes CODIFICATION Section 1219(b)(2) of Pub. L. 109–280, which directed the amendment of section 6696 without specifying the act to be amended, was executed to this section, which is section 6696 of the Internal Revenue Code of 1986, to reflect the probable intent of Congress. See 2006 Amendment note below. AMENDMENTS 2018—Subsec. (a). Pub. L. 115–141, § 401(a)(311), sub- stituted ‘‘sections 6694,’’ for ‘‘section 6694,’’. Subsec. (d)(1). Pub. L. 115–141, § 401(a)(312), substituted ‘‘6695,’’ for ‘‘section 6695,’’. Subsec. (e)(1). Pub. L. 115–141, § 206(n)(3), inserted ‘‘, any administrative adjustment request under sec- tion 6227, and any partnership adjustment tracking re- port under section 6226(b)(4)(A)’’ before period at end. 2007—Subsec. (d)(1). Pub. L. 110–172 substituted ‘‘, section 6695, or 6695A’’ for ‘‘or under section 6695’’. Subsec. (e). Pub. L. 110–28 substituted ‘‘this title’’ for ‘‘subtitle A’’ in pars. (1) and (2). 2006—Pub. L. 109–280 substituted ‘‘6694, 6695, and 6695A’’ for ‘‘6694 and 6695’’ wherever appearing in sec- tion catchline and text and ‘‘6694, 6695, or 6695A’’ for ‘‘6694 or 6695’’ wherever appearing in text. See Codifica- tion note above. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2018 AMENDMENT Amendment by section 206(n)(3) of Pub. L. 115–141 ef- fective as if included in section 1101 of Pub. L. 114–74, see section 207 of Pub. L. 115–141, set out as a note under section 6031 of this title. EFFECTIVE DATE OF 2007 AMENDMENT Amendment by Pub. L. 110–172 effective as if included in the provisions of the Pension Protection Act of 2006, Pub. L. 109–280, to which such amendment relates, see section 3(j) of Pub. L. 110–172, set out as a note under section 170 of this title. Amendment by Pub. L. 110–28 applicable to returns prepared after May 25, 2007, see section 8246(c) of Pub. L. 110–28, set out as a note under section 6060 of this title. EFFECTIVE DATE OF 2006 AMENDMENT Amendment by Pub. L. 109–280 applicable to apprais- als prepared with respect to returns or submissions filed after Aug. 17, 2006, with special rule for certain easements, see section 1219(e)(2), (3) of Pub. L. 109–280, set out as a note under section 170 of this title. [§ 6697. Repealed. Pub. L. 111–325, title V, § 501(a), Dec. 22, 2010, 124 Stat. 3554] Section, added Pub. L. 94–455, title XVI, § 1601(b)(1), Oct. 4, 1976, 90 Stat. 1745; amended Pub. L. 95–600, title III, § 362(b), Nov. 6, 1978, 92 Stat. 2851; Pub. L. 99–514, title VI, § 667(a), Oct. 22, 1986, 100 Stat. 2305, related to assessable penalties with respect to liability for tax of regulated investment companies. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF REPEAL Repeal applicable to taxable years beginning after Dec. 22, 2010, see section 501(c) of Pub. L. 111–325, set out as an Effective Date of 2010 Amendment note under sec- tion 860 of this title. § 6698. Failure to file partnership return (a) General rule In addition to the penalty imposed by section 7203 (relating to willful failure to file return, supply information, or pay tax), if any partner- ship required to file a return under section 6031, or a partnership adjustment tracking report under section 6226(b)(4)(A), for any taxable year— (1) fails to file such return, or such report, at the time prescribed therefor (determined with regard to any extension of time for filing), or (2) files a return or a report which fails to show the information required under section 6031 or 6226(b)(4)(A), respectively, such partnership shall be liable for a penalty de- termined under subsection (b) for each month