Internal Revenue Code:Sec. 6702. Frivolous tax submissions

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Contents


Location in Internal Revenue Code


     TITLE 26 - INTERNAL REVENUE CODE
      Subtitle F - Procedure and Administration
       CHAPTER 68 - ADDITIONS TO THE TAX, ADDITIONAL AMOUNTS, AND
             ASSESSABLE PENALTIES
         Subchapter B - Assessable Penalties
          PART I - GENERAL PROVISIONS
        

Statute


        SEC. 6702. FRIVOLOUS TAX SUBMISSIONS.

    (a) Civil Penalty for Frivolous Tax Returns.--A person shall pay a 
      penalty of $5,000 if--
            (1) such person files what purports to be a return of a 
        tax imposed by this title 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)--
                    (A) is based on a position which the Secretary has 
                identified as frivolous under subsection (c), or
                    (B) reflects a desire to delay or impede the 
                administration of Federal tax laws.
    (b) Civil Penalty for Specified Frivolous Submissions.--
            (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.
            (2) Specified frivolous submission.--For purposes of this 
        section--
                    (A) Specified frivolous submission.--The term 
                `specified frivolous submission' means a specified 
                submission if any portion of such submission--
                          (i) is based on a position which the 
                      Secretary has identified as frivolous under 
                      subsection (c), or
                          (ii) reflects a desire to delay or impede 
                      the administration of Federal tax laws.
                    (B) Specified submission.--The term `specified 
                submission' means--
                          (i) a request for a hearing under--
                                    (I) section 6320 (relating to 
                                notice and opportunity for hearing upon 
                                filing of notice of lien), or
                                    (II) section 6330 (relating to 
                                notice and opportunity for hearing 
                                before levy), and
                          (ii) an application under--
                                    (I) section 6159 (relating to 
                                agreements for payment of tax liability 
                                in installments),
                                    (II) section 7122 (relating to 
                                compromises), or
                                    (III) section 7811 (relating to 
                                taxpayer assistance orders).
            (3) Opportunity to <<NOTE: Deadline.>> 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.
    (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).
    (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.
    (e) Penalties in Addition to Other Penalties.--The penalties 
imposed by this section shall be in addition to any other penalty 
provided by law.
 

Sources

    (Added Pub. L. 97-248, title III, Sec. 326(a), Sept. 3, 1982, 96
    Stat. 617.)
 

Miscellaneous

                                 AMENDMENTS

2006 - Tax Relief and Health Care Act of 2006 (P.L. 109-432)
SEC. 407. FRIVOLOUS TAX SUBMISSIONS.
    (a) Civil Penalties.--Section 6702 is amended to read as follows:
``SEC. 6702. FRIVOLOUS TAX SUBMISSIONS.

    ``(a) Civil Penalty for Frivolous Tax Returns.--A person shall pay a 
penalty of $5,000 if--
            ``(1) such person files what purports to be a return of a 
        tax imposed by this title 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)--
                    ``(A) is based on a position which the Secretary has 
                identified as frivolous under subsection (c), or
                    ``(B) reflects a desire to delay or impede the 
                administration of Federal tax laws.

    ``(b) Civil Penalty for Specified Frivolous Submissions.--
            ``(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.
            ``(2) Specified frivolous submission.--For purposes of this 
        section--
                    ``(A) Specified frivolous submission.--The term 
                `specified frivolous submission' means a specified 
                submission if any portion of such submission--
                          ``(i) is based on a position which the 
                      Secretary has identified as frivolous under 
                      subsection (c), or
                          ``(ii) reflects a desire to delay or impede 
                      the administration of Federal tax laws.
                    ``(B) Specified submission.--The term `specified 
                submission' means--
                          ``(i) a request for a hearing under--
                                    ``(I) section 6320 (relating to 
                                notice and opportunity for hearing upon 
                                filing of notice of lien), or
                                    ``(II) section 6330 (relating to 
                                notice and opportunity for hearing 
                                before levy), and
                          ``(ii) an application under--
                                    ``(I) section 6159 (relating to 
                                agreements for payment of tax liability 
                                in installments),
                                    ``(II) section 7122 (relating to 
                                compromises), or
                                    ``(III) section 7811 (relating to 
                                taxpayer assistance orders).
            ``(3) Opportunity to <<NOTE: Deadline.>> 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.

    ``(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).
    ``(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.
    ``(e) Penalties in Addition to Other Penalties.--The penalties 
imposed by this section shall be in addition to any other penalty 
provided by law.''.
    (e) Clerical Amendment.--The table of sections for part I of 
subchapter B of chapter 68 is amended by striking the item relating to 
section 6702 and inserting the following new item:
``Sec. 6702. Frivolous tax submissions.''.

                               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).''
 

References

                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 6703 of this title.
 

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