Civil penalty
If a claim for refund or credit with respect to income or employment tax is made 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 for a penalty in an amount equal to 20 percent of the excessive amount.
Excessive amount
For purposes of this section, the term “excessive 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.
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 treated as due to reasonable cause.
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.
Pub. L. 110–28, title VIII, § 8247(a)121 Stat. 204Pub. L. 111–152, title I, § 1409(d)124 Stat. 1070Pub. L. 114–113, div. Q, title II, § 209(b)129 Stat. 3084Pub. L. 115–141, div. U, title IV, § 401(a)(305)132 Stat. 1199Pub. L. 119–21, title VII, § 70605(f)139 Stat. 288(Added , , ; amended , , ; , (c), , , 3085; , , ; , , .)
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 reflect the probable intent of Congress. See 2010 Amendment note below.
Prior Provisions
Pub. L. 87–397, § 1(b)75 Stat. 828Pub. L. 91–172, title I, § 101(j)(52)83 Stat. 531Pub. L. 93–406, title II, § 1016(a)(20)88 Stat. 931Pub. L. 97–248, title III, § 316(a)96 Stat. 607Pub. L. 98–67, title I, § 105(a)97 Stat. 380Pub. L. 98–369, div. A, title IV, § 422(c)98 Stat. 798Pub. L. 99–514, title XV100 Stat. 2736Pub. L. 100–647, title I, § 1015(g)102 Stat. 3570Pub. L. 101–239, title VII, § 7711(b)(1)103 Stat. 2393A prior section 6676, added , , ; amended , , ; , , ; , , ; , , ; , , ; , §§ 1501(b), 1523(b)(3), 1524(b), , , 2748, 2749; , , , related to failure to supply identifying numbers, prior to repeal by , (c), , , applicable to returns and statements the due date for which (determined without regard to extensions) is after .
Amendments
Pub. L. 119–212025—Subsec. (a). substituted “income or employment tax” for “income tax”.
Pub. L. 115–1412018—Subsec. (c). substituted “reasonable cause” for “reasonable basis” in heading.
Pub. L. 114–113, § 209(c)(1)2015—Subsec. (a). , substituted “is due to reasonable cause” for “has a reasonable basis”.
Pub. L. 114–113, § 209(b), struck out “(other than a claim for a refund or credit relating to the earned income credit under section 32)” after “income tax”.
Pub. L. 114–113, § 209(c)(2)Subsec. (c). , substituted “due to reasonable cause” for “having a reasonable basis”.
Pub. L. 111–1522010—Subsecs. (c), (d). added subsec. (c) and redesignated former subsec. (c) as (d). See Codification note above.
Statutory Notes and Related Subsidiaries
Effective Date of 2025 Amendment
Pub. L. 119–21section 70605(g)(4) of Pub. L. 119–21section 3134 of this titleAmendment by applicable to claims for credit or refund after , see , set out as an Enforcement Provisions With Respect to COVID-Related Employee Retention Credits note under .
Effective Date of 2015 Amendment
Pub. L. 114–113, div. Q, title II, § 209(d)(2)129 Stat. 3085Pub. L. 115–141, div. U, title I, § 101(k)132 Stat. 1162
Effective Date of 2010 Amendment
Pub. L. 111–152section 1409(e)(4) of Pub. L. 111–152section 6662 of this titleAmendment by applicable to refunds and credits attributable to transactions entered into after , see , set out as a note under .
Effective Date
Pub. L. 110–28, title VIII, § 8247(c)121 Stat. 204