26 U.S.C. § 6675 — Excessive claims with respect to the use

Page 3788 TITLE 26—INTERNAL REVENUE CODE § 6674 the taxpayer’s position in such proceedings is frivolous or groundless, damages in an amount not in excess of $5,000’’ for ‘‘by the taxpayer merely for delay, damages in an amount not in excess of $500’’ in first sentence. 1976—Pub. L. 94–455 struck out ‘‘or his delegate’’ after ‘‘Secretary’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1989 AMENDMENT Pub. L. 101–239, title VII, § 7731(d), Dec. 19, 1989, 103 Stat. 2402, provided that: ‘‘The amendments made by this section [amending this section and section 7482 of this title] shall apply to positions taken after Decem- ber 31, 1989, in proceedings which are pending on, or commenced after such date.’’ EFFECTIVE DATE OF 1988 AMENDMENT Pub. L. 100–647, title VI, § 6241(d), Nov. 10, 1988, 102 Stat. 3749, provided that: ‘‘The amendments made by this section [enacting section 7433 of this title and amending this section] shall apply to actions by offi- cers or employees of the Internal Revenue Service after the date of the enactment of this Act [Nov. 10, 1988].’’ EFFECTIVE DATE OF 1986 AMENDMENT Pub. L. 99–514, title XV, § 1552(b), Oct. 22, 1986, 100 Stat. 2753, provided that: ‘‘The amendment made by subsection (a) [amending this section] shall apply to proceedings commenced after the date of the enact- ment of this Act [Oct. 22, 1986].’’ EFFECTIVE DATE OF 1982 AMENDMENT Amendment by Pub. L. 97–248 applicable to any ac- tion or proceeding in the Tax Court commenced after Dec. 31, 1982, or pending in the Tax Court on the day 120 days after July 18, 1984, see section 292(e)(2) of Pub. L. 97–248, as amended, set out as an Effective Date note under section 7430 of this title. § 6674. Fraudulent statement or failure to furnish statement to employee In addition to the criminal penalty provided by section 7204, any person required under the provisions of section 6051 or 6053(b) to furnish a statement to an employee who willfully fur- nishes a false or fraudulent statement, or who willfully fails to furnish a statement in the manner, at the time, and showing the informa- tion required under section 6051 or 6053(b), or regulations prescribed thereunder, shall for each such failure be subject to a penalty under this subchapter of $50, which shall be assessed and collected in the same manner as the tax on em- ployers imposed by section 3111. (Aug. 16, 1954, ch. 736, 68A Stat. 828; Pub. L. 89–97, title III, § 313(e)(2)(C), July 30, 1965, 79 Stat. 385.) Editorial Notes AMENDMENTS 1965—Pub. L. 89–97 substituted ‘‘6051 or 6053(b)’’ for ‘‘6051’’ wherever appearing. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1965 AMENDMENT Amendment by section 313 of Pub. L. 89–97 applicable only with respect to tips received by employees after 1965, see section 313(f) of Pub. L. 89–97, set out as a note under section 6053 of this title. § 6675. Excessive claims with respect to the use of certain fuels (a) Civil penalty In addition to any criminal penalty provided by law, if a claim is made under section 6416(a)(4) (relating to certain sales of gasoline), section 6420 (relating to gasoline used on farms), 6421 (relating to gasoline used for certain non- highway purposes or by local transit systems), or 6427 (relating to fuels not used for taxable purposes) for an excessive amount, unless it is shown that the claim for such excessive amount is due to reasonable cause, the person making such claim shall be liable to a penalty in an amount equal to whichever of the following is the greater: (1) Two times the excessive amount; or (2) $10. (b) Excessive amount defined For purposes of this section, the term ‘‘exces- sive amount’’ means in the case of any person the amount by which— (1) the amount claimed under section 6416(a)(4), 6420, 6421, or 6427, as the case may be, for any period, exceeds (2) the amount allowable under such section for such period. (c) Assessment and collection of penalty For assessment and collection of penalty provided by subsection (a), see section 6206. (Added Apr. 2, 1956, ch. 160, § 3, 70 Stat. 90; amended June 29, 1956, ch. 462, title II, § 208(d)(2), 70 Stat. 396; Pub. L. 89–44, title II, § 202(c)(3)(A), June 21, 1965, 79 Stat. 139; Pub. L. 91–258, title II, § 207(d)(8), May 21, 1970, 84 Stat. 249; Pub. L. 95–618, title II, § 233(b)(2)(D), Nov. 9, 1978, 92 Stat. 3191; Pub. L. 97–424, title V, § 515(b)(11)(A)–(C), Jan. 6, 1983, 96 Stat. 2182; Pub. L. 109–59, title XI, § 11163(d)(2), (3), Aug. 10, 2005, 119 Stat. 1975.) Editorial Notes AMENDMENTS 2005—Subsec. (a). Pub. L. 109–59, § 11163(d)(2), inserted ‘‘section 6416(a)(4) (relating to certain sales of gaso- line),’’ after ‘‘made under’’ in introductory provisions. Subsec. (b)(1). Pub. L. 109–59, § 11163(d)(3), inserted ‘‘6416(a)(4),’’ after ‘‘under section’’. 1983—Pub. L. 97–424, § 515(b)(11)(C), struck out ‘‘or lu- bricating oil’’ after ‘‘fuels’’ in section catchline. Subsec. (a). Pub. L. 97–424, § 515(b)(11)(A), struck out ‘‘6424 (relating to lubricating oil used for certain non- taxable purposes),’’ after ‘‘systems),’’. Subsec. (b)(1). Pub. L. 97–424, § 515(b)(11)(B), struck out ‘‘6424,’’ after ‘‘6421,’’. 1978—Subsec. (a). Pub. L. 95–618 substituted ‘‘used for certain nontaxable purposes’’ for ‘‘not used in highway motor vehicles’’. 1970—Pub. L. 91–258, § 207(d)(8)(A), substituted ‘‘fuels’’ for ‘‘gasoline’’ in section catchline. Subsec. (a). Pub. L. 91–258, § 207(d)(8)(B), inserted ref- erence to section 6427 relating to fuels not used for tax- able purposes. Subsec. (b)(1). Pub. L. 91–258, § 207(d)(8)(C), inserted reference to section 6427. 1965—Pub. L. 89–44, § 202(c)(3)(A)(i), inserted ‘‘or lubri- cating oil’’ after ‘‘gasoline’’ in section catchline. Subsec. (a). Pub. L. 89–44, § 202(c)(3)(A)(ii), inserted reference to claims made under section 6424. Subsec. (b)(1). Pub. L. 89–44, § 202(c)(3)(A)(iii), inserted reference to amounts claimed under section 6424. 1956—Act June 29, 1956, § 208(d)(2)(A), substituted ‘‘with respect to the use of certain gasoline’’ for ‘‘for gasoline used on farms’’ in section catchline. Page 3789 TITLE 26—INTERNAL REVENUE CODE § 6677 Subsec. (a). Act June 29, 1956, § 208(d)(2)(B), inserted reference to claims made under section 6421. Subsec. (b). Act June 29, 1956, § 208(d)(2)(C), inserted reference to amounts claimed under section 6421. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2005 AMENDMENT Amendment by Pub. L. 109–59 applicable to sales after Dec. 31, 2005, see section 11163(e) of Pub. L. 109–59, set out as a note under section 4101 of this title. EFFECTIVE DATE OF 1983 AMENDMENT Amendment by Pub. L. 97–424 applicable with respect to articles sold after Jan. 6, 1983, see section 515(c) of Pub. L. 97–424, set out as a note under section 34 of this title. EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95–618 effective on first day of first calendar month which begins more than 10 days after Nov. 9, 1978, see section 233(d) of Pub. L. 95–618, set out as a note under section 34 of this title. EFFECTIVE DATE OF 1970 AMENDMENT Amendment by Pub. L. 91–258 effective July 1, 1970, see section 211(a) of Pub. L. 91–258, set out as a note under section 4041 of this title. EFFECTIVE DATE OF 1965 AMENDMENT Amendment by Pub. L. 89–44 effective Jan. 1, 1966, see section 701(a)(1), (2) of Pub. L. 89–44, set out as a note under section 4161 of this title. EFFECTIVE DATE OF 1956 AMENDMENT Amendment by act June 29, 1956, effective June 29, 1956, see section 211 of act June 29, 1956, set out as a note under section 4041 of this title. § 6676. Erroneous claim for refund or credit (a) Civil penalty If a claim for refund or credit with respect to income tax is made for an excessive amount, un- less it is shown that the claim for such excessive amount is due to reasonable cause, the person making such claim shall be liable for a penalty in an amount equal to 20 percent of the exces- sive amount. (b) Excessive amount For purposes of this section, the term ‘‘exces- sive amount’’ means in the case of any person the amount by which the amount of the claim for refund or credit for any taxable year exceeds the amount of such claim allowable under this title for such taxable year. (c) Noneconomic substance transactions treated as lacking reasonable cause For purposes of this section, any excessive amount which is attributable to any transaction described in section 6662(b)(6) shall not be treat- ed as due to reasonable cause. (d) Coordination with other penalties This section shall not apply to any portion of the excessive amount of a claim for refund or credit which is subject to a penalty imposed under part II of subchapter A of chapter 68. (Added Pub. L. 110–28, title VIII, § 8247(a), May 25, 2007, 121 Stat. 204; amended Pub. L. 111–152, title I, § 1409(d), Mar. 30, 2010, 124 Stat. 1070; Pub. L. 114–113, div. Q, title II, § 209(b), (c), Dec. 18, 2015, 129 Stat. 3084, 3085; Pub. L. 115–141, div. U, title IV, § 401(a)(305), Mar. 23, 2018, 132 Stat. 1199.) Editorial Notes CODIFICATION Section 1409(d) of Pub. L. 111–152, which directed the amendment of section 6676 without specifying the act to be amended, was executed to this section, which is section 6676 of the Internal Revenue Code of 1986, to re- flect the probable intent of Congress. See 2010 Amend- ment note below. PRIOR PROVISIONS A prior section 6676, added Pub. L. 87–397, § 1(b), Oct. 5, 1961, 75 Stat. 828; amended Pub. L. 91–172, title I, § 101(j)(52), Dec. 30, 1969, 83 Stat. 531; Pub. L. 93–406, title II, § 1016(a)(20), Sept. 2, 1974, 88 Stat. 931; Pub. L. 97–248, title III, § 316(a), Sept. 3, 1982, 96 Stat. 607; Pub. L. 98–67, title I, § 105(a), Aug. 5, 1983, 97 Stat. 380; Pub. L. 98–369, div. A, title IV, § 422(c), July 18, 1984, 98 Stat. 798; Pub. L. 99–514, title XV, §§ 1501(b), 1523(b)(3), 1524(b), Oct. 22, 1986, 100 Stat. 2736, 2748, 2749; Pub. L. 100–647, title I, § 1015(g), Nov. 10, 1988, 102 Stat. 3570, related to failure to supply identifying numbers, prior to repeal by Pub. L. 101–239, title VII, § 7711(b)(1), (c), Dec. 19, 1989, 103 Stat. 2393, applicable to returns and statements the due date for which (determined without regard to exten- sions) is after Dec. 31, 1989. AMENDMENTS 2018—Subsec. (c). Pub. L. 115–141 substituted ‘‘reason- able cause’’ for ‘‘reasonable basis’’ in heading. 2015—Subsec. (a). Pub. L. 114–113, § 209(c)(1), sub- stituted ‘‘is due to reasonable cause’’ for ‘‘has a reason- able basis’’. Pub. L. 114–113, § 209(b), struck out ‘‘(other than a claim for a refund or credit relating to the earned in- come credit under section 32)’’ after ‘‘income tax’’. Subsec. (c). Pub. L. 114–113, § 209(c)(2), substituted ‘‘due to reasonable cause’’ for ‘‘having a reasonable basis’’. 2010—Subsecs. (c), (d). Pub. L. 111–152 added subsec. (c) and redesignated former subsec. (c) as (d). See Codi- fication note above. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2015 AMENDMENT Pub. L. 114–113, div. Q, title II, § 209(d)(2), Dec. 18, 2015, 129 Stat. 3085, as amended by Pub. L. 115–141, div. U, title I, § 101(k), Mar. 23, 2018, 132 Stat. 1162, provided that: ‘‘The amendments made by subsections (b) and (c) [amending this section] shall apply to claims filed after the date of the enactment of this Act [Dec. 18, 2015].’’ EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111–152 applicable to refunds and credits attributable to transactions entered into after Mar. 30, 2010, see section 1409(e)(4) of Pub. L. 111–152, set out as a note under section 6662 of this title. EFFECTIVE DATE Pub. L. 110–28, title VIII, § 8247(c), May 25, 2007, 121 Stat. 204, provided that: ‘‘The amendments made by this section [enacting this section] shall apply to any claim filed or submitted after the date of the enact- ment of this Act [May 25, 2007].’’ § 6677. Failure to file information with respect to certain foreign trusts (a) Civil penalty In addition to any criminal penalty provided by law, if any notice or return required to be filed by section 6048— (1) is not filed on or before the time provided in such section, or (2) does not include all the information re- quired pursuant to such section or includes in- correct information,