I.R.C. § 6702(a) Civil Penalty For Frivolous Tax Returns —
A person shall pay a penalty of $5,000 if--
I.R.C. § 6702(a)(1) —
such person files what purports to be a return of a tax imposed by this title
but which--
I.R.C. § 6702(a)(1)(A) —
does not contain information on which the substantial correctness of the
self-assessment may be judged, or
I.R.C. § 6702(a)(1)(B) —
contains information that on its face indicates that the self-assessment is
substantially incorrect, and
I.R.C. § 6702(a)(2) —
the conduct referred to in paragraph
(1)--
I.R.C. § 6702(a)(2)(A) —
is based on a position which the Secretary has identified as frivolous under
subsection (c), or
I.R.C. § 6702(a)(2)(B) —
reflects a desire to delay or impede the administration of Federal tax laws.
I.R.C. § 6702(b) Civil Penalty For Specified Frivolous Submissions
I.R.C. § 6702(b)(1) Imposition Of Penalty —
Except as provided in paragraph (3), any person
who submits a specified frivolous submission shall pay a penalty of $5,000.
I.R.C. § 6702(b)(2) Specified Frivolous Submission —
For purposes of this section--
I.R.C. § 6702(b)(2)(A) Specified Frivolous Submission —
The term “specified frivolous submission” means a specified submission if
any portion of such submission--
I.R.C. § 6702(b)(2)(A)(i) —
is based on a position which the Secretary has identified as frivolous
under subsection (c), or
I.R.C. § 6702(b)(2)(A)(ii) —
reflects a desire to delay or impede the administration of Federal tax laws.
I.R.C. § 6702(b)(2)(B) Specified Submission —
The term “specified submission” means--
I.R.C. § 6702(b)(2)(B)(i) —
a request for a hearing under--
I.R.C. § 6702(b)(2)(B)(i)(I) —
section 6320 (relating to notice and opportunity for hearing upon filing of notice
of lien), or
I.R.C. § 6702(b)(2)(B)(i)(II) —
section 6330 (relating to notice and opportunity for hearing before levy), and
I.R.C. § 6702(b)(2)(B)(ii) —
an application under--
I.R.C. § 6702(b)(2)(B)(ii)(I) —
section 6159 (relating to agreements for payment of tax liability in installments),
I.R.C. § 6702(b)(2)(B)(ii)(II) —
section 7122 (relating to compromises), or
I.R.C. § 6702(b)(2)(B)(ii)(III) —
section 7811 (relating to taxpayer assistance
orders).
I.R.C. § 6702(b)(3) Opportunity To Withdraw Submission —
If the Secretary provides a person with notice that a submission is a specified
frivolous submission and such
person withdraws such submission within 30 days after such notice, the penalty
imposed under paragraph (1) shall not apply with respect to such submission.
I.R.C. § 6702(c) Listing Of Frivolous Positions —
The Secretary shall prescribe (and periodically revise) a list of positions which
the Secretary has identified as
being frivolous for purposes of this subsection. The Secretary shall not include
in such list any position that the Secretary determines meets the requirement
of section 6662(d)(2)(B)(ii)(II).
I.R.C. § 6702(d) Reduction Of Penalty —
The Secretary may reduce the amount of any penalty
imposed under this section if the Secretary determines that such reduction would
promote compliance with and administration of the Federal tax laws.
I.R.C. § 6702(e) Penalties In Addition To Other Penalties —
The penalties imposed by this section shall be in addition to any other penalty
provided by law.
I.R.C. § 6702(f) Partnership Adjustments —
An administrative adjustment request under section 6227 and a partnership adjustment
tracking report under section 6226(b)(4)(A)
shall be treated as a return for purposes of this section.
(Added Pub. L. 97-248, title III, 326(a), Sept. 3, 1982, 96 Stat. 617; amended by Pub. L. 109-432, div. A, title IV, Sec. 407(a), Dec. 20, 2006, 120 Stat. 2922; Pub. L. 115-141, Div. U, title II, Sec. 206(n)(4), Mar. 23, 2018, 132 Stat. 348.)
Background Notes
AMENDMENTS
2018 - Subsec. (f). Pub. L. 115-141, Div. U, Sec. 206(n)(4), added subsec. (f).
2006 - Pub. L. 109-432, Sec. 407(a), amended Sec. 6702. Before amendment, it read as follows:
“Sec. 6702. Frivolous income tax return
“(a) Civil penalty
“If--
“(1) any individual files what purports to be a return of the tax imposed by subtitle
A but which--
“(A) does not contain information on which the substantial correctness of the self-assessment
may be judged, or
“(B) contains information that on its face indicates that the self-assessment is substantially
incorrect; and
“(2) the conduct referred to in paragraph (1) is due to--
“(A) a position which is frivolous, or
“(B) a desire (which appears on the purported return)
to delay or impede the administration of Federal income tax laws, then such individual
shall pay a penalty of $500.
“(b) Penalty in addition to other penalties
“The penalty imposed by subsection (a) shall be in addition to any other penalty provided
by law.”
EFFECTIVE DATE OF 2018 AMENDMENT
Amendment by Pub. L. 115-141, Div. U, Sec. 206(n), effective as if included in section 1101 of the Bipartisan
Budget Act of 2015 [Pub. L. 114-74].
EFFECTIVE DATE OF 2006 AMENDMENT
Amendment by Sec. 407(a) of Pub. L. 109-432 effective for submissions made and issues raised after the date on which the Secretary
first prescribes a list under section 6702(c) of the Internal Revenue Code of 1986, as amended by subsection (a).
EFFECTIVE DATE
Section 326(c) of Pub. L. 97-248 provided that: “The amendments made by this section
[enacting this section] shall apply with respect to documents filed after the date
of the enactment of this Act [Sept. 3, 1982].”
Section Referred to in Other Sections
This section is referred to in section 6703 of this title.
