Title 26 — Internal Revenue Code
Part I · Chapter 68 — Additions to the Tax, Additional Amounts, and Assessable Penalties
§ 6657. Bad checks
Statutory text
If any instrument in payment, by any commercially acceptable means, of any amount receivable under this title is not duly paid, in addition to any other penalties provided by law, there shall be paid as a penalty by the person who tendered such instrument, upon notice and demand by the Secretary, in the same manner as tax, an amount equal to 2 percent of the amount of such instrument, except that if the amount of such instrument is less than $1,250, the penalty under this section shall be $25 or the amount of such instrument, whichever is the lesser. This section shall not apply if the person tendered such instrument in good faith and with reasonable cause to believe that it would be duly paid.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
Aug. 16, 1954, ch. 736, 68A Stat. 826 · 68A Stat. 826
Enacted · 26 U.S.C. § 6657
Aug. 16, 1954, ch. 736, 68A Stat. 826
Source evidence
Code source credit
Aug. 16, 1954, ch. 736, 68A Stat. 826Pub. L. 94–455 title XIX § 1906(b)(13)(A) · 90 Stat. 1520
Struck · 26 U.S.C. § 6657
Pub. L. 94–455 struck out “or his delegate” after “Secretary”
Source evidence
Code amendment note
Pub. L. 94–455 struck out “or his delegate” after “Secretary”.Enacted provision · exact public law section
(A) The Internal Revenue Code of 1954, as amended by this Act, is amended by striking out “Secretary or his delegate” each place it appears and inserting in lieu thereof “Secretary”.Technical and Miscellaneous Revenue Act of 1988
Pub. L. 100–647 title V § 5071(a) · 102 Stat. 3342
Substituted · 26 U.S.C. § 6657
Pub. L. 100–647 substituted “2” for “1”
Substituted · 26 U.S.C. § 6657
Pub. L. 100–647 substituted “$750” for “$500”
Substituted · 26 U.S.C. § 6657
Pub. L. 100–647 substituted “$15” for “$5”
Source evidence
Code amendment note
Pub. L. 100–647 substituted “2” for “1”, “$750” for “$500”, and “$15” for “$5”.Enacted provision · exact public law section
(a) General Rule.— Section 6657 of the 1986 Code (relating to bad checks) is amended— (1) by striking out “1 percent” and inserting in lieu thereof “2 percent”, (2) by striking out “$500” and inserting in lieu thereof “$750”, and (3) by striking out “$5” and inserting in lieu thereof “$15”.Small Business and Work Opportunity Tax Act of 2007
Pub. L. 110–28 title VIII § 8245(a) · 121 Stat. 112
Substituted · 26 U.S.C. § 6657
Pub. L. 110–28 substituted “$1,250” for “$750”
Substituted · 26 U.S.C. § 6657
Pub. L. 110–28 substituted “$25” for “$15”
Source evidence
Code amendment note
Pub. L. 110–28 substituted “$1,250” for “$750” and “$25” for “$15”.Enacted provision · exact public law section
(a) In General.— Section 6657 (relating to bad checks) is amended— (1) by striking “$750” and inserting “$1,250”, and (2) by striking “$15” and inserting “$25”.Homebuyer Assistance and Improvement Act of 2010
Pub. L. 111–198 § 3(a)(2) · 124 Stat. 1356
Substituted · 26 U.S.C. § 6657
Pub. L. 111–198, § 3(a)(2), substituted “such instrument” for “such check” wherever appearing
Source evidence
Code amendment note
Pub. L. 111–198, § 3(a)(2), substituted “such instrument” for “such check” wherever appearing.Enacted provision · exact public law section
(2) by striking “such check” each place it appears and inserting “such instrument”.Effective date note
Pub. L. 111–198, § 3(b), July 2, 2010, 124 Stat. 1356, provided that: “The amendments made by this section [amending this section] shall apply to instruments tendered after the date of the enactment of this Act [July 2, 2010].”Homebuyer Assistance and Improvement Act of 2010
Pub. L. 111–198 § 3(a)(1) · 124 Stat. 1356
Substituted · 26 U.S.C. § 6657
Pub. L. 111–198, § 3(a)(1), substituted “If any instrument in payment, by any commercially acceptable means, of any amount” for “If any check or money order in payment of any amount”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 111–198, § 3(a)(1), substituted “If any instrument in payment, by any commercially acceptable means, of any amount” for “If any check or money order in payment of any amount”.Enacted provision · exact public law section
(1) by striking “If any check or money order in payment of any amount” and inserting “If any instrument in payment, by any commercially acceptable means, of any amount”, andEffective date note
Pub. L. 111–198, § 3(b), July 2, 2010, 124 Stat. 1356, provided that: “The amendments made by this section [amending this section] shall apply to instruments tendered after the date of the enactment of this Act [July 2, 2010].”
8 of 9 references resolved to an enrolled provision · 1 partial
Editorial Notes
Amendments1976–2010 · 4 rounds
2010
Pub. L. 111–198, § 3(a)(2), substituted “such instrument” for “such check” wherever appearing.
Pub. L. 111–198, § 3(a)(1), substituted “If any instrument in payment, by any commercially acceptable means, of any amount” for “If any check or money order in payment of any amount”.
2007
Pub. L. 110–28 substituted “$1,250” for “$750” and “$25” for “$15”.
1988
Pub. L. 100–647 substituted “2” for “1”, “$750” for “$500”, and “$15” for “$5”.
1976
Pub. L. 94–455 struck out “or his delegate” after “Secretary”.
Statutory Notes and Related Subsidiaries
Effective Date of 2010 Amendment
Pub. L. 111–198, § 3(b), , 124 Stat. 1356, provided that: “The amendments made by this section [amending this section] shall apply to instruments tendered after the date of the enactment of this Act [].”
Effective Date of 2007 Amendment
Pub. L. 110–28, title VIII, § 8245(b), , 121 Stat. 200, provided that: “The amendments made by this section [amending this section] apply to checks or money orders received after the date of the enactment of this Act [].”
Effective Date of 1988 Amendment
Pub. L. 100–647, title V, § 5071(b), , 102 Stat. 3681, provided that: “The amendment made by subsection (a) [amending this section] shall apply to checks or money orders received after the date of the enactment of this Act [].”
Credits
1954–2010 · 5 acts
- 1954Aug. 16, 1954, ch. 736, 68A Stat. 826
- 1976Pub. L. 94–455, title XIX, § 1906(b)(13)(A), , 90 Stat. 1834
- 1988Pub. L. 100–647, title V, § 5071(a), , 102 Stat. 3681
- 2007Pub. L. 110–28, title VIII, § 8245(a), , 121 Stat. 200
- 2010Pub. L. 111–198, § 3(a), , 124 Stat. 1356.
Show as published
(Aug. 16, 1954, ch. 736, 68A Stat. 826; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), , 90 Stat. 1834; Pub. L. 100–647, title V, § 5071(a), , 102 Stat. 3681; Pub. L. 110–28, title VIII, § 8245(a), , 121 Stat. 200; Pub. L. 111–198, § 3(a), , 124 Stat. 1356.)