2017 US 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
Sec. 6701 - Penalties for aiding and abetting understatement of tax liability
26 U.S.C. § 6701 (2017) |
§6701. Penalties for aiding and abetting understatement of tax liability |
(a) Imposition of penalty
Any person— (1) who aids or assists in, procures, or advises with respect to, the preparation or presentation of any portion of a return, affidavit, claim, or other document, (2) who knows (or has reason to believe) that such portion will be used in connection with any material matter arising under the internal revenue laws, and (3) who knows that such portion (if so used) would result in an understatement of the liability for tax of another person, shall pay a penalty with respect to each such document in the amount determined under subsection (b). (b) Amount of penalty (1) In generalExcept as provided in paragraph (2), the amount of the penalty imposed by subsection (a) shall be $1,000. If the return, affidavit, claim, or other document relates to the tax liability of a corporation, the amount of the penalty imposed by subsection (a) shall be $10,000. If any person is subject to a penalty under subsection (a) with respect to any document relating to any taxpayer for any taxable period (or where there is no taxable period, any taxable event), such person shall not be subject to a penalty under subsection (a) with respect to any other document relating to such taxpayer for such taxable period (or event). For purposes of subsection (a), the term "procures" includes— (A) ordering (or otherwise causing) a subordinate to do an act, and (B) knowing of, and not attempting to prevent, participation by a subordinate in an act. For purposes of paragraph (1), the term "subordinate" means any other person (whether or not a director, officer, employee, or agent of the taxpayer involved) over whose activities the person has direction, supervision, or control. Subsection (a) shall apply whether or not the understatement is with the knowledge or consent of the persons authorized or required to present the return, affidavit, claim, or other document. (e) Certain actions not treated as aid or assistanceFor purposes of subsection (a)(1), a person furnishing typing, reproducing, or other mechanical assistance with respect to a document shall not be treated as having aided or assisted in the preparation of such document by reason of such assistance. (f) Penalty in addition to other penalties (1) In generalExcept as provided by paragraphs (2) and (3), the penalty imposed by this section shall be in addition to any other penalty provided by law. No penalty shall be assessed under subsection (a) or (b) of section 6694 on any person with respect to any document for which a penalty is assessed on such person under subsection (a). No penalty shall be assessed under section 6700 on any person with respect to any document for which a penalty is assessed on such person under subsection (a). |
(Added Pub. L. 97–248, title III, §324(a), Sept. 3, 1982, 96 Stat. 615; amended Pub. L. 101–239, title VII, §7735(a), (b), Dec. 19, 1989, 103 Stat. 2403.) |
AMENDMENTS
1989—Subsec. (a)(1). Pub. L. 101–239, §7735(a)(1), struck out "in connection with any matter arising under the internal revenue laws" after "other document". Subsec. (a)(2). Pub. L. 101–239, §7735(a)(2), inserted "(or has reason to believe)" after "who knows". Subsec. (a)(3). Pub. L. 101–239, §7735(a)(3), substituted "would result" for "will result". Subsec. (f)(1). Pub. L. 101–239, §7735(b)(2), substituted "paragraphs (2) and (3)" for "paragraph (2)". Subsec. (f)(3). Pub. L. 101–239, §7735(b)(1), added par. (3). EFFECTIVE DATE OF 1989 AMENDMENTPub. L. 101–239, title VII, §7735(c), Dec. 19, 1989, 103 Stat. 2404, provided that: "The amendments made by this section [amending this section] shall take effect on December 31, 1989." EFFECTIVE DATEPub. L. 97–248, title III, §324(c), Sept. 3, 1982, 96 Stat. 616, provided that: "The amendments made by this section [enacting this section] shall take effect on the day after the date of the enactment of this Act [Sept. 3, 1982]." |
United States Code, 2012 Edition, Supplement 5, Title 26 - INTERNAL REVENUE CODE |
Bills and Statutes |
United States Code |
Y 1.2/5: |
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 Sec. 6701 - Penalties for aiding and abetting understatement of tax liability |
section 6701 |
2017 |
January 12, 2018 |
No |
standard |
96 Stat. 615, 616 103 Stat. 2403, 2404 |
Public Law 97-248, Public Law 101-239 |