§ 6673. Sanctions and costs awarded by courts

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.

1. 1954

   Aug. 16, 1954, ch. 736, 68A Stat. 828 · 68A Stat. 828

   Enacted · 26 U.S.C. § 6673

   Aug. 16, 1954, ch. 736, 68A Stat. 828

   Source evidence

   Code source credit
   Aug. 16, 1954, ch. 736, 68A Stat. 828

2. 1976

   Pub. L. 94–455 title XIX § 1906(b)(13)(A) · 90 Stat. 1520

   Struck · 26 U.S.C. § 6673

   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”.

3. 1982

   Pub. L. 97–248 § 292(d)(2)(A) · 96 Stat. 324

   Substituted · 26 U.S.C. § 6673

   Pub. L. 97–248, § 292(d)(2)(A), substituted “primarily for delay, etc.” for “merely for delay” after “Tax Court” in section catchline

   Source evidence

   Code amendment note
   Pub. L. 97–248, § 292(d)(2)(A), substituted “primarily for delay, etc.” for “merely for delay” after “Tax Court” in section catchline.

   Enacted provision · exact public law section
   (A) The section heading of section 6673 is amended by 26 USC 6673. striking out “merely for delay.” and inserting in lieu thereof “primarily for delay, etc.”.

4. 1982

   Pub. L. 97–248 § 292(b) · 96 Stat. 324

   Substituted · 26 U.S.C. § 6673(a)

   Pub. L. 97–248, § 292(b), substituted “or maintained by the taxpayer primarily for delay or that the taxpayer’s position in such proceedings is frivolous or groundless, damages in an amount not in excess of $5,000” for “by the taxpayer merely for delay, damages in an amount not in excess of $500” in first sentence

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 97–248, § 292(b), substituted “or maintained by the taxpayer primarily for delay or that the taxpayer’s position in such proceedings is frivolous or groundless, damages in an amount not in excess of $5,000” for “by the taxpayer merely for delay, damages in an amount not in excess of $500” in first sentence.

   Enacted provision · exact public law section
   (b) Penalty for Using Tax Court Proceedings for Delay; Penalty for Frivolous or Groundless Proceeding.— The first sentence of section 6673 (relating to damages assessable by instituting 26 USC 6673. proceedings before the Tax Court merely for delay) is amended to read as follows: “Whenever it appears to the Tax Court that proceedings before it have been instituted or maintained by the taxpayer primarily for delay or that the taxpayer’s position in such proceedings is frivolous or groundless, damages in an amount not in excess of $5,000 shall be awarded to the United States by the Tax Court in its decision.”.

5. 1986

   Tax Reform Act of 1986

   Pub. L. 99–514 title XV § 1552(a) · 100 Stat. 2085

   Substituted · 26 U.S.C. § 6673

   Pub. L. 99–514 substituted “, that the taxpayer’s position in such proceeding is frivolous or groundless, or that the taxpayer unreasonably failed to pursue available administrative remedies” for “or that the taxpayer’s position in such proceedings is frivolous or groundless”

   Source evidence

   Code amendment note
   Pub. L. 99–514 substituted “, that the taxpayer’s position in such proceeding is frivolous or groundless, or that the taxpayer unreasonably failed to pursue available administrative remedies” for “or that the taxpayer’s position in such proceedings is frivolous or groundless”.

   Enacted provision · exact public law section
   (a) General Rule.— Section 6673 (relating to damages assessable for instituting proceedings before the Tax Court primarily for delay, etc.) is amended by striking out “or that the taxpayer’s position in such proceedings is frivolous or groundless” and inserting in lieu thereof”, that the taxpayer’s position in such proceeding is frivolous or groundless, or that the taxpayer unreasonably failed to pursue available administrative remedies”.

6. 1988

   Omnibus Taxpayer Bill of Rights

   Pub. L. 100–647 title VI § 6241(b) · 102 Stat. 3342

   1. Struck · 26 U.S.C. § 6673

      Pub. L. 100–647 struck out “Tax” after “before the” in section catchline

   2. Amended · 26 U.S.C. § 6673

      Pub. L. 100–647 designated existing provisions as subsec. (a)

   3. Added · 26 U.S.C. § 6673

      Pub. L. 100–647 added subsec. (b)

   Source evidence

   Code amendment note
   Pub. L. 100–647 struck out “Tax” after “before the” in section catchline, designated existing provisions as subsec. (a), and added subsec. (b).

   Enacted provision · exact public law section
   (b) Damages for Frivolous or Groundless Claims.— (1) In general.— Section 6673 of the 1986 Code (relating to damages assessable for instituting proceedings before the Tax Court primarily for delay, etc.) is amended by inserting “(a) In General.—” before “Whenever” and by adding at the end thereof the following new subsection: “(b) Claims Under Section 7433.— Whenever it appears to the court that the taxpayer’s position in proceedings before the court instituted or maintained by such taxpayer under section 7433 is frivolous or groundless, damages in an amount not in excess of $10,000 shall be awarded to the United States by the court in the court’s decision. Damages so awarded shall be assessed at the same time as the decision and shall be paid upon notice and demand from the Secretary.” (2) Clerical amendment.— The heading for section 6673 of the 1986 Code is amended by striking out “TAX”.

7. 1989

   Improved Penalty Administration and Compliance Tax Act

   Pub. L. 101–239 title VII § 7731(a) · 103 Stat. 2106

   1. Substituted · 26 U.S.C. § 6673

      Pub. L. 101–239 substituted “Sanctions and costs awarded by courts” for “Damages assessable for instituting proceedings before the Court primarily for delay, etc.” in section catchline

   2. Amended · 26 U.S.C. § 6673

      Pub. L. 101–239 amended text generally, making changes in substance and structure of subsecs. (a) and (b)

   Source evidence

   Code amendment note
   Pub. L. 101–239 substituted “Sanctions and costs awarded by courts” for “Damages assessable for instituting proceedings before the Court primarily for delay, etc.” in section catchline and amended text generally, making changes in substance and structure of subsecs. (a) and (b).

   Enacted provision · exact public law section
   (a) General Rule.— Section 6673 (relating to damages assessable for instituting proceedings before the Tax Court primarily for delay, etc.) is amended to read as follows: “SEC. 6673. SANCTIONS AND COSTS AWARDED BY COURTS. “(a) Tax Court Proceedings.— “(1) Procedures instituted primarily for delay, etc.— Whenever it appears to the Tax Court that— “(A) proceedings before it have been instituted or maintained by the taxpayer primarily for delay, “(B) the taxpayer’s position in such proceeding is frivolous or groundless, or “(C) the taxpayer unreasonably failed to pursue available administrative remedies, the Tax Court, in its decision, may require the taxpayer to pay to the United States a penalty not in excess of $25,000. “(2) Counsel’s liability for excessive costs.— Whenever it appears to the Tax Court that any attorney or other person admitted to practice before the Tax Court has multiplied the proceedings in any case unreasonably and vexatiously, the Tax Court may require— “(A) that such attorney or other person pay personally the excess costs, expenses, and attorneys’ fees reasonably incurred because of such conduct, or “(B) if such attorney is appearing on behalf of the Commissioner of Internal Revenue, that the United States pay such excess costs, expenses, and attorneys’ fees in the same manner as such an award by a district court. “(b) Proceedings in Other Courts.— “(1) Claims under section 7433.— Whenever it appears to the court that the taxpayer’s position in the proceedings before the court instituted or maintained by such taxpayer under section 7433 is frivolous or groundless, the court may require the taxpayer to pay to the United States a penalty not in excess of $10,000. “(2) Collection of sanctions and costs.— In any civil proceeding before any court (other than the Tax Court) which is brought by or against the United States in connection with the determination, collection, or refund of any tax, interest, or penalty under this title, any monetary sanctions, penalties, or costs awarded by the court to the United States may be assessed by the Secretary and, upon notice and demand, may be collected in the same manner as a tax. “(3) Sanctions and costs awarded by a court of appeals.— In connection with any appeal from a proceeding in the Tax Court or a civil proceeding described in paragraph (2), an order of a United States Court of Appeals or the Supreme Court awarding monetary sanctions, penalties or court costs to the United States may be registered in a district court upon filing a certified copy of such order and shall be enforceable as other district court judgments. Any such sanctions, penalties, or costs may be assessed by the Secretary and, upon notice and demand, may be collected in the same manner as a tax.”

   Effective date note
   Pub. L. 101–239, title VII, § 7731(d), Dec. 19, 1989, 103 Stat. 2402, provided that: “The amendments made by this section [amending this section and section 7482 of this title] shall apply to positions taken after December 31, 1989, in proceedings which are pending on, or commenced after such date.”

9 of 10 references resolved to an enrolled provision · 1 partial