I.R.C. § 6672(a) General Rule —
Any person required to collect, truthfully account for, and pay over any tax imposed
by this title who willfully fails to collect such tax, or truthfully account for
and pay over such tax, or willfully attempts in any manner to evade or defeat any
such tax or the payment thereof, shall, in addition to other penalties provided by
law, be liable to a penalty equal to the total amount of the tax evaded, or not collected,
or not accounted for and paid over. No penalty shall be imposed under section 6653 or part II of subchapter A of chapter 68 for any offense to which this section is
applicable.
I.R.C. § 6672(b) Preliminary Notice Requirement
I.R.C. § 6672(b)(1) In General —
No penalty shall be imposed under subsection (a) unless the Secretary notifies
the taxpayer in writing by mail to an address as determined under section 6212(b)
or in person that the taxpayer shall be subject to an assessment of such penalty.
I.R.C. § 6672(b)(2) Timing Of Notice —
The mailing of the notice described in paragraph (1)
(or, in the case of such a notice delivered in person, such delivery)
shall precede any notice and demand of any penalty under subsection
(a) by at least 60 days.
I.R.C. § 6672(b)(3) Statute Of Limitations —
If a notice described in paragraph (1) with respect to any penalty is mailed or
delivered in person before the expiration of the period provided by section 6501 for the assessment of such penalty (determined without regard to this
paragraph), the period provided by such section for the assessment of such penalty
shall not expire before the later of—
I.R.C. § 6672(b)(3)(A) —
the date 90 days after the date on which such notice was mailed or delivered in
person, or
I.R.C. § 6672(b)(3)(B) —
if there is a timely protest of the proposed assessment, the date 30 days after
the Secretary makes
a final administrative determination with respect to such protest.
I.R.C. § 6672(b)(4) Exception For Jeopardy —
This subsection shall not apply if the Secretary finds that the collection of the
penalty is in jeopardy.
I.R.C. § 6672(c) Extension Of Period Of Collection Where Bond Is Filed
I.R.C. § 6672(c)(1) In General —
If, within 30 days after the day on which notice and demand of any penalty under
subsection (a) is made against any person, such person--
I.R.C. § 6672(c)(1)(A) —
pays an amount which is not less than the minimum amount required to commence a proceeding
in court with respect to his liability for such penalty,
I.R.C. § 6672(c)(1)(B) —
files a claim for refund of the amount so paid, and
I.R.C. § 6672(c)(1)(C) —
furnishes a bond which meets the requirements of paragraph (3),
no levy or proceeding in court for
the collection of the remainder of such penalty shall be made, begun, or prosecuted
until a final resolution of a proceeding begun as provided in paragraph (2). Notwithstanding
the provisions of section 7421(a), the beginning of such proceeding or levy during the time such prohibition is in
force may be enjoined by a proceeding in the proper court. Nothing in this paragraph
shall be construed to prohibit any counterclaim for the
remainder of such penalty in a proceeding begun as provided in paragraph
(2).
I.R.C. § 6672(c)(2) Suit Must Be Brought To Determine Liability For Penalty —
If, within 30 days after the day on which his claim for refund with respect to any
penalty under subsection (a) is denied, the person described in paragraph (1) fails
to begin a proceeding in the appropriate United States district court (or in the
Court of Federal Claims) for the determination of his liability for such penalty,
paragraph (1) shall cease to apply with respect to such penalty, effective on the
day following the close of the 30-day period referred to in this paragraph.
I.R.C. § 6672(c)(3) Bond —
The bond referred to in paragraph (1) shall be in such form and with such sureties
as the Secretary may by regulations prescribe and shall be in an amount equal to
11/2 times the amount of excess of the penalty assessed over the payment described
in paragraph (1).
I.R.C. § 6672(c)(4) Suspension Of Running Of Period Of Limitations On Collection —
The running of the period of limitations provided in section 6502 on the collection by levy or by a proceeding in court in respect of any penalty
described in paragraph (1) shall be suspended for the period during which the Secretary
is prohibited from collecting by levy or a proceeding in court.
I.R.C. § 6672(c)(5) Jeopardy Collection —
If the Secretary makes a finding that the collection of the penalty is in jeopardy,
nothing in this subsection shall prevent the immediate collection of such penalty.
I.R.C. § 6672(d) Right Of Contribution Where More Than 1 Person Liable For Penalty —
If more than 1 person is liable for the penalty under
subsection (a) with respect to any tax, each person who paid such
penalty shall be entitled to recover from other persons who are liable for such
penalty an amount equal to the excess of the amount paid by such person over such
person's proportionate share of the penalty. Any claim for such a recovery may be
made only in a proceeding which is separate from, and is not joined or consolidated
with—
I.R.C. § 6672(d)(1) —
an action for collection of such penalty brought by the United States, or
I.R.C. § 6672(d)(2) —
a proceeding in which the United States files a counterclaim or third-party complaint
for the collection of such penalty.
I.R.C. § 6672(e) Exception For Voluntary Board Members Of Tax-Exempt Organizations —
No penalty shall be imposed by subsection (a) on any
unpaid, volunteer member of any board of trustees or directors of an organization
exempt from tax under subtitle A if such member—
I.R.C. § 6672(e)(1) —
is solely serving in an honorary capacity,
I.R.C. § 6672(e)(2) —
does not participate in the day-to-day or financial operations of the organization,
and
I.R.C. § 6672(e)(3) —
does not have actual knowledge of the failure on which such penalty is imposed.
The preceding sentence shall not apply if it results in no person being liable for
the penalty imposed by subsection
(a).
(Aug. 16, 1954, ch. 736, 68A Stat. 828; Nov. 10, 1978,
Pub. L. 95-628, Sec. 9(a), 92 Stat. 3633; Dec. 19, 1989, Pub. L. 101-239,
title VII, Sec. 7721(c)(9), 7737(a), 103 Stat. 2400, 2404; Pub. L. 105-206, title III, Sec. 3307, July 22, 1998, 112 Stat 685; Pub. L. 115-141, Div. U, title IV, Sec. 401(a)(325)(D), Mar. 23, 2018, 132 Stat. 348.)
BACKGROUND NOTES
AMENDMENTS
2018--Subsec. (c)(2). Pub. L. 115-141, Div. U, Sec. 401(a)(325)(D), amended par. (2) by substituting “Court of Federal
Claims”
for “Court of Claims”.
1998--Subsec. (b)(1). Pub. L. 105-206, Sec. 3307(a) inserted
“or in person” after “section 6212(b)”.
Subsec. (b)(2). Pub. L. 105-206, Sec. 3307(b)(1) inserted “(or, in the case of such a notice delivered in person, such delivery)”
after “paragraph
(1)”.
Subsec. (b)(3). Pub. L. 105-206, Sec. 3307(b)(2) inserted “or delivered in person"
after each occurrence of “mailed”.
1996--Subsec. (b), (c). Pub. L. 104-168, Sec. 901(a), redesignated subsec. (b) as subsec. (c) and added a new subsec. (b).
Subsec. (d). Pub. L. 104-168, Sec. 903(a), added subsec. (d).
Subsec. (e). Pub. L. 104-168, Sec. 904(a), added subsec. (e).
1989--Subsec. (a). Pub. L. 101-239, Sec. 7721(c)(9), inserted ‘or part II of subchapter A of chapter 68’ after ‘under section 6653’.
Subsec. (b)(1). Pub. L. 101-239, Sec. 7737(a), inserted at end ‘Nothing in this paragraph shall be construed to prohibit any counterclaim
for the remainder of such penalty in a proceeding begun as provided in paragraph
(2).’
1978--Pub. L. 95-628 designated existing provisions as subsec. (a), added subsec. (a) heading, and added
subsec. (b).
EFFECTIVE DATE OF 2018 AMENDMENTS
Amendment by Section 401(a)(325)(D) of Pub. L. 115-141, Div. U, effective March 23, 2018.
EFFECTIVE DATE OF 1998 AMENDMENTS
Amendment by Section 3307 of Pub. L. 105-206 effective on the date of enactment [Enacted: July 22, 1998].
EFFECTIVE DATE OF 1996 AMENDMENTS
Amendment by section 901(a) of Pub. L. 104-168 applicable to proposed assessments made after June 30, 1996.
Amendment by section 903(a) of Pub. L. 104-168 applicable to penalties assessed after the date of the enactment of this Act [Enacted:
July 30, 1996].
EFFECTIVE DATE OF 1989 AMENDMENTS
Amendment by section 7721(c)(9) of Pub. L. 101-239 applicable to returns the due date for which (determined without regard to extensions)
is after Dec. 31, 1989, see section 7721(d) of Pub. L. 101-239, set out as a note under section 461 of this title.
Section 7737(b) of Pub. L. 101-239 provided that: ‘The amendment made by subsection
(a) (amending this section and sections 6694 and 6703 of this title)
shall take effect on the date of the enactment of this Act (Dec. 19, 1989).’
EFFECTIVE DATE OF 1978 AMENDMENTS
Section 9(c) of Pub. L. 95-628 provided that: ‘The amendments made by this section
(amending this section and sections 7103 and 7421 of this title) shall apply with
respect to penalties assessed more than 60 days after the date of the enactment of
this Act (Nov. 10, 1978).’
