26 U.S.C. § 6676 — Erroneous claim for refund or credit

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,