26 USC 6702 - Frivolous tax submissions

View all text of Part I [§ 6671 - § 6720C]

§ 6702. Frivolous tax submissions

(a) Civil penalty for frivolous tax returnsA 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

(2) Specified frivolous submissionFor purposes of this section—

(A) Specified frivolous submissionThe 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 submissionThe 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 withdraw submission

(d) Reduction of penalty

(e) Penalties in addition to other penalties

(f) Partnership adjustments

(Added Pub. L. 97–248, title III, § 326(a), Sept. 3, 1982, 96 Stat. 617; amended Pub. L. 109–432, div. A, title IV, § 407(a), Dec. 20, 2006, 120 Stat. 2960; Pub. L. 115–141, div. U, title II, § 206(n)(4), Mar. 23, 2018, 132 Stat. 1182.)