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  1. IRC
  2. Subtitle F
  3. Chapter 68
  4. Subchapter B
  5. Part I
  6. § 6676

Sec. 6676. Erroneous Claim For Refund Or Credit

I.R.C. § 6676(a) Civil Penalty —
If a claim for refund or credit with respect to income 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.
I.R.C. § 6676(b) 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.
I.R.C. § 6676(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 treated as due to reasonable cause.
I.R.C. § 6676(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 by Pub. L. 110-28, title VIII, Sec. 8247(a), May 25, 2007, 121 Stat. 112; amended by Pub. L. 111-152, Sec. 1409(d), Mar. 30, 2010, 124 Stat. 1029; Pub. L. 114-113, Div. Q, title II, Sec. 209(b), (c), Dec. 18, 2015; Pub. L. 115-141, Div. U, title IV, Sec. 401(a)(305), Mar. 23, 2018, 132 Stat. 348.)
BACKGROUND NOTES
AMENDMENTS
2018 - Subsec. (c). Pub. L. 115-141, Div. U, Sec. 401(a)(305), amended the heading of subsec. (c) by substituting “Reasonable Cause” for “Reasonable Basis”.
2015 - Subsec. (a). Pub. L. 114-113, Div. Q, Sec. 209(b), amended subsec. (a) by striking “(other than a claim for a refund or credit relating to the earned income credit under section 32)”.
Subsec. (a). Pub. L. 114-113, Div. Q, Sec. 209(c)(1), amended subsec. (a) by substituting “is due to reasonable cause” for “has a reasonable basis”.
Subsec. (c). Pub. L. 114-113, Div. Q, Sec. 209(c)(2), amended subsec. (c) by substituting “due to reasonable cause” for “having a reasonable basis”.
2010 - Subsec. (c)-(d). Pub. L. 111-152, Sec. 1409(d), redesignated subsec. (c) and subsec. (d) and added subsec. (c).
EFFECTIVE DATE OF 2018 AMENDMENT
Amendment by Pub. L. 115-141, Div. U, Sec. 401(a)(305), effective March 23, 2018.
EFFECTIVE DATE OF 2015 AMENDMENTS
Amendment by Sec. 209(b) and (c) of Pub. L. 114-113, Div. Q, as amended by Pub. L. 115-141, Div. U, Sec. 101(k), effective for claims filed after the date of the enactment of this Act [Enacted: Dec. 18, 2015].
EFFECTIVE DATE OF 2010 AMENDMENTS
Amendments by Sec. 1409(d) of Pub. L. 111-152 effective for refunds and credits attributable to transactions entered into after the date of the enactment of this Act [Enacted: Mar. 30, 2010].
EFFECTIVE DATE
Effective for any claim filed or submitted after the date of the enactment of this Act [Enacted: May 25, 2007].