§ 6695. Other assessable penalties with respect to the preparation of tax returns for other persons

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. 1976

   Pub. L. 94–455 title XII § 1203(f) · 90 Stat. 1520

   Enacted · 26 U.S.C. § 6695

   Added Pub. L. 94–455, title XII, § 1203(f), Oct. 4, 1976, 90 Stat. 1692

   Source evidence

   Code source credit
   Added Pub. L. 94–455, title XII, § 1203(f), Oct. 4, 1976, 90 Stat. 1692

   Enacted provision · exact public law section
   (f) Other Assess able Penalties With Respect to the Preparation or Income Tax Returns for Other Persons.— Subchapter B of chapter 68 (relating to assessable penalties) is amended by adding at the end thereof the following new sections: “SEC. 6695. OTHER ASSESSABLE PENALTIES WITH RESPECT TO THE PREPARATION OF INCOME TAX RETURNS FOR OTHER PERSONS. “(a) Failure To Furnish Copy to Taxpayer.— Any person who is an income tax return preparer with respect to any return or claim Ante, p, 1690. for refund who fails to comply with section 6107(a) with respect to such return or claim shall pay a penalty of $25 for such failure, unless it is shown that such failure is due to reasonable cause and not due to willful neglect. “(b) Failure To Sign Return.— Any person who is an income tax return preparer with respect to any return or claim for refund, who is required by regulations prescribed by the Secretary to sign such return or claim, and who fails to comply with such regulations with respect to such return or claim shall pay a penalty of $25 for such failure, unless it is shown that such failure is due to reasonable cause and not due to willful neglect. “(c) Failure To Furnish Identifying Number.— Any person who is an income tax return preparer with respect to any return or claim for refund and who fails to comply with section 6109(a)(4) with respect to such return or claim shall pay a penalty of $25 for such failure, unless it is shown that such failure is due to reasonable cause and not due to willful neglect. “(d) Failure To Retain Copy or List.— Any person who is an income tax return preparer with respect to any return or claim for refund who fails to comply with section 6107 (b) with respect to such return or claim shall pay a penalty of $50 for each such failure, unless it is shown that such failure is due to reasonable cause and not due to willful neglect. The maximum penalty imposed under this subsection on any person with respect to any return period shall not exceed $25,000. “(e) Failure To File Correct Information Return.— Any person required to make a return under section 6060 who fails to comply with the requirements of such section shall pay a penalty of— “(1) $100 for each failure to file a return as required under such section, and “(2) $5 for each failure to set forth an item in the return as required under such section, unless it is shown that such failure is due to reasonable cause, and not due to willful neglect. The maximum penalty imposed under this subsection on any person with respect to any return period shall not exceed $20,000. “(f) Negotiation of Check.— Any person who is an income tax return preparer who endorses or otherwise negotiates (directly or through an agent) any check made in respect of the taxes imposed by subtitle A which is issued to a taxpayer (other than the income tax 26 USC 1. return preparer) shall pay a penalty of $500 with respect to each such check. “SEC. 6696. RULES APPLICABLE WITH RESPECT TO SECTIONS 6694 AND 6695. “(a) Penalties To Be Additional to Ant Other Penalties.— The penalties provided by section 6694 and 6695 shall be in addition to any Ante, p. 1689. Post, p. 1878. Ante, p. 1692. other penalties provided by law. “(b) Deficiency Procedures Not To Apply.— Subchapter B of chapter 63 (relating to deficiency procedures for income, estate, gift, 26 USC 6211. and certain excise taxes) shall not apply with respect to the assessment or collection of the penalties provided by sections 6694 and 6695. “(c) Procedure fob Claiming Refund.— Any claim for credit, or Regulations. refund of any penalty paid under section 6694 or 6695 shall be filed in accordance with regulations prescribed by the Secretary. “(d) Periods of Limitation.— “(1) Assessment.— The amount of any penalty under section 6694(a) or under section 6695 shall be assessed within 3 years after the return or claim for refund with respect to which the penalty is assessed was filed, and no proceeding in court without assessment for the collection of such tax shall be begun after the expiration of such period. in the case of any penalty under section 6694(b), the penalty may be assessed, or a proceeding in court for the collection of the penalty may be begun without assessment, at any time. “(2) Claim for refund.— Except as provided in section 6694 (d), any claim for refund of an overpayment of any penalty assessed under section 6694 or 6695 shall be filed within 3 years from the time the penalty was paid. “(e) Definitions.— For purposes of sections 6694 and 6695— “(1) Return.— The term ‘return’ means any return of any tax imposed by subtitle A. “(2) Claim for refund.— The term ‘claim for refund’ means a claim for refund of, or credit against, any tax imposed by subtitle A”

2. 1978

   Pub. L. 95–600 title VII § 701(cc)(1) · 92 Stat. 2763

   Inserted · 26 U.S.C. § 6695(f)

   Pub. L. 95–600 inserted provision relating to deposits by a bank

   Source evidence

   Code amendment note
   Subsec. (f). Pub. L. 95–600 inserted provision relating to deposits by a bank.

   Enacted provision · exact public law section
   (1) Negotiation of checks by bank.— Subsection (f) of section 6695 (relating to negotiation of check) is amended by adding at 26 USC 6695. the end thereof the following new sentence: “The preceding sentence shall not apply with respect to the deposit by a bank (within the meaning of section 581) of the full amount of the 26 USC 581. check in the taxpayer’s account in such bank for the benefit of the taxpayer.”

3. 1984

   Tax Reform Act of 1984

   Pub. L. 98–369 div. A title I § 179(b)(2) · 98 Stat. 494

   1. Amended · 26 U.S.C. § 6695(b)

      Pub. L. 98–369 amended subsec. (b) generally

   2. Substituted · 26 U.S.C. § 6695(b)

      Pub. L. 98–369 substituting provisions dealing with failure to inform taxpayer of certain recordkeeping requirements of section 274(d) of this title or to sign returns, for provisions dealing with failure to sign returns. See 1985 Amendment note above

   Source evidence

   Code amendment note
   Subsec. (b). Pub. L. 98–369 amended subsec. (b) generally, substituting provisions dealing with failure to inform taxpayer of certain recordkeeping requirements of section 274(d) of this title or to sign returns, for provisions dealing with failure to sign returns. See 1985 Amendment note above.

   Enacted provision · exact public law section
   (2) Duties of return preparers.— Subsection (b) of section 6695 (relating to failure to sign return) is amended to read as follows: “(b) Failure To Inform Taxpayer of Certain Recordkeeping Requirements or To Sign Return.— Any person who is an income tax return preparer with respect to any return or claim for refund and who is required by regulations to sign such return or claim— “(1) shall advise the taxpayer of the substantiation requirements of section 274(d) and obtain written confirmation from the taxpayer that such requirements were met with respect to any deduction or credit claimed on such return or claim for refund, and “(2) shall sign such return or claim for refund. Any person who fails to comply with the requirements of the preceding sentence with respect to any return or claim shall pay a penalty of $25 for such failure, unless it is shown that such failure is due to reasonable cause and not to willful neglect.”

4. 1985

   Pub. L. 99–44 § 1(b) · 99 Stat. 77

   Repealed · 26 U.S.C. § 6695(b)

   Pub. L. 99–44 repealed Pub. L. 98–369, § 179(b)(2), which amended subsec. (b), and provided that the Internal Revenue Code of 1954 [now 1986] [this title] shall be applied and administered as if section 179(b)(2) (and the amendments made by such section) had not been enacted. See 1984 Amendment note and Effective Date of 1985 Amendment note below

   Source evidence

   Code amendment note
   Subsec. (b). Pub. L. 99–44 repealed Pub. L. 98–369, § 179(b)(2), which amended subsec. (b), and provided that the Internal Revenue Code of 1954 [now 1986] [this title] shall be applied and administered as if section 179(b)(2) (and the amendments made by such section) had not been enacted. See 1984 Amendment note and Effective Date of 1985 Amendment note below.

   Enacted provision · exact public law section
   (b) Provisions Relating to Return Preparers and Negligence Penalty.— Paragraphs (2) and (3) of section 179(b) of the Tax Reform Act of 1984 are hereby repealed, and the Internal Revenue Code of 98 Stat. 713. 26 USC 6695, 6653. 26 USC 6653 note. 26 USC 274 note. 1954 shall be applied and administered as if such paragraphs (and the amendments made by such paragraphs) had not been enacted.

5. 1989

   Improved Penalty Administration and Compliance Tax Act

   Pub. L. 101–239 § 7733(a) · 103 Stat. 2106

   1. Substituted · 26 U.S.C. § 6695(a)(c)

      Pub. L. 101–239, § 7733(a)–(c), substituted “$50” for “$25”

   2. Inserted · 26 U.S.C. § 6695(a)(c)

      Pub. L. 101–239, § 7733(a)–(c), inserted at end “The maximum penalty imposed under this subsection on any person with respect to documents filed during any calendar year shall not exceed $25,000.”

   Source evidence

   Code amendment note
   Subsecs. (a) to (c). Pub. L. 101–239, § 7733(a)–(c), substituted “$50” for “$25” and inserted at end “The maximum penalty imposed under this subsection on any person with respect to documents filed during any calendar year shall not exceed $25,000.”

   Enacted provision · exact public law section
   (a) Failure To Furnish Copy to Taxpayer.— Subsection (a) of section 6695 is amended— (1) by striking “$25” and inserting “$50”, and (2) by adding at the end thereof the following new sentence: “The maximum penalty imposed under this subsection on any person with respect to documents filed during any calendar year shall not exceed $25,000.”

6. 1989

   Improved Penalty Administration and Compliance Tax Act

   Pub. L. 101–239 § 7733(d) · 103 Stat. 2106

   1. Substituted · 26 U.S.C. § 6695(e)

      Pub. L. 101–239, § 7733(d), substituted “returns” for “return” in heading

   2. Amended · 26 U.S.C. § 6695(e)

      Pub. L. 101–239, § 7733(d), amended text generally. Prior to amendment, text read as follows: “Any person required to make a return under section 6060 who fails to comply with the requirements of such section shall pay a penalty of—

   Source evidence

   Code amendment note
   Subsec. (e). Pub. L. 101–239, § 7733(d), substituted “returns” for “return” in heading and amended text generally. Prior to amendment, text read as follows: “Any person required to make a return under section 6060 who fails to comply with the requirements of such section shall pay a penalty of—

   “(1) $100 for each failure to file a return as required under such section, and “(2) $5 for each failure to set forth an item in the return as required under such section, unless it is shown that such failure is due to reasonable cause and not due to willful neglect. The maximum penalty imposed under this subsection on any person with respect to any return period shall not exceed $20,000.”

   Enacted provision · exact public law section
   (d) Failure To FILE Correct Information Returns.— Subsection (e) of section 6695 is amended to read as follows: “(e) Failure To File Correct Information Returns.— Any person required to make a return under section 6060 who fails to comply with the requirements of such section shall pay a penalty of $50 for— “(1) each failure to file a return as required under such section, and “(2) each failure to set forth an item in the return as required under section, unless it is shown that such failure is due to reasonable cause and not due to willful neglect. The maximum penalty imposed under this subsection on any person with respect to any return period shall not exceed $25,000.”

7. 1997

   Pub. L. 105–34 title X § 1085(a)(2) · 111 Stat. 788

   Added · 26 U.S.C. § 6695(g)

   Pub. L. 105–34 added subsec. (g)

   Source evidence

   Code amendment note
   Subsec. (g). Pub. L. 105–34 added subsec. (g).

   Enacted provision · exact public law section
   (2) Due diligence requirement on income tax return preparers.— Section 6695 is amended by adding at the end the following new subsection: “(g) Failure To Be Diligent in Determining Eligibility for Earned Income Credit.— Any person who is an income tax return preparer with respect to any return or claim for refund who fails to comply with due diligence requirements imposed by the Secretary by regulations with respect to determining eligibility for, or the amount of, the credit allowable by section 32 shall pay a penalty of $100 for each such failure.”.

8. 2007

   Small Business and Work Opportunity Tax Act of 2007

   Pub. L. 110–28 § 8246(a)(2)(G)(i)(I) · 121 Stat. 112

   Struck · 26 U.S.C. § 6695

   Pub. L. 110–28, § 8246(a)(2)(G)(i)(I), struck out “income” before “tax” in section catchline

   Source evidence

   Code amendment note
   Pub. L. 110–28, § 8246(a)(2)(G)(i)(I), struck out “income” before “tax” in section catchline.

   Enacted provision · exact public law section
   (I) by striking “income” in the heading, and

9. 2007

   Small Business and Work Opportunity Tax Act of 2007

   Pub. L. 110–28 § 8246(a)(2)(G)(i)(II) · 121 Stat. 112

   Substituted · 26 U.S.C. § 6695(a)(d)

   Pub. L. 110–28, § 8246(a)(2)(G)(i)(II), substituted “a tax return preparer” for “an income tax return preparer”

   Source evidence

   Code amendment note
   Subsecs. (a) to (d). Pub. L. 110–28, § 8246(a)(2)(G)(i)(II), substituted “a tax return preparer” for “an income tax return preparer”.

   Enacted provision · exact public law section
   (II) by striking “an income tax return preparer” each place it appears and inserting “a tax return preparer”.

10. 2007

    Small Business and Work Opportunity Tax Act of 2007

    Pub. L. 110–28 § 8246(a)(2)(G)(i)(II) · 121 Stat. 112

    1. Substituted · 26 U.S.C. § 6695(f)

       Pub. L. 110–28, § 8246(a)(2)(G)(i)(II), (ii), substituted “a tax return preparer” for “an income tax return preparer”

    2. Substituted · 26 U.S.C. § 6695(f)

       Pub. L. 110–28, § 8246(a)(2)(G)(i)(II), (ii), substituted “this title” for “subtitle A”

    3. Substituted · 26 U.S.C. § 6695(f)

       Pub. L. 110–28, § 8246(a)(2)(G)(i)(II), (ii), substituted “the tax return preparer” for “the income tax return preparer”

    Source evidence

    Code amendment note
    Subsec. (f). Pub. L. 110–28, § 8246(a)(2)(G)(i)(II), (ii), substituted “a tax return preparer” for “an income tax return preparer”, “this title” for “subtitle A”, and “the tax return preparer” for “the income tax return preparer”.

    Enacted provision · exact public law section
    (II) by striking “an income tax return preparer” each place it appears and inserting “a tax return preparer”.

11. 2007

    Small Business and Work Opportunity Tax Act of 2007

    Pub. L. 110–28 § 8246(a)(2)(G)(i)(II) · 121 Stat. 112

    Substituted · 26 U.S.C. § 6695(g)

    Pub. L. 110–28, § 8246(a)(2)(G)(i)(II), substituted “a tax return preparer” for “an income tax return preparer”

    Source evidence

    Code amendment note
    Subsec. (g). Pub. L. 110–28, § 8246(a)(2)(G)(i)(II), substituted “a tax return preparer” for “an income tax return preparer”.

    Enacted provision · exact public law section
    (II) by striking “an income tax return preparer” each place it appears and inserting “a tax return preparer”.

12. 2011

    United States–Korea Free Trade Agreement Implementation Act

    Pub. L. 112–41 title V § 501(a) · 125 Stat. 459

    Substituted · 26 U.S.C. § 6695(g)

    Pub. L. 112–41 substituted “$500” for “$100”

    Source evidence

    Code amendment note
    Subsec. (g). Pub. L. 112–41 substituted “$500” for “$100”.

    Enacted provision · exact public law section
    (a) In General.— Section 6695(g) of the Internal Revenue Code of 26 USC 6695. 1986 is amended by striking “$100” and inserting “$500”.

13. 2014

    Tax Technical Corrections Act of 2014

    Pub. L. 113–295 div. B title II § 208(c) · 128 Stat. 4010

    Added · 26 U.S.C. § 6695(h)

    Pub. L. 113–295 added subsec. (h)

    Source evidence

    Code amendment note
    Subsec. (h). Pub. L. 113–295 added subsec. (h).

    Enacted provision · exact public law section
    SEC. 208. CLERICAL AMENDMENT RELATING TO HIRING INCENTIVES TO RESTORE EMPLOYMENT ACT. (a) Amendment Relating to Section 512.— Paragraph (1) of section 512(a) of the Hiring Incentives to Restore Employment Act 26 USC 6662. is amended by striking “after paragraph (6)” and inserting “after paragraph (5)”. (b) Effective Date.— The amendment made by this section shall take effect as if included in the provision of the Hiring Incentives to Restore Employment Act to which it relates.

14. 2015

    Department of Justice Appropriations Act, 2016

    Pub. L. 114–113 div. Q title II § 207(a) · 129 Stat. 2242

    1. Inserted · 26 U.S.C. § 6695(g)

       Pub. L. 114–113 inserted “child tax credit; American Opportunity Tax Credit; and” before “earned income credit” in heading

    2. Substituted · 26 U.S.C. § 6695(g)

       Pub. L. 114–113 substituted “section 24, 25A(a)(1), or 32” for “section 32” in text

    Source evidence

    Code amendment note
    Subsec. (g). Pub. L. 114–113 inserted “child tax credit; American Opportunity Tax Credit; and” before “earned income credit” in heading and substituted “section 24, 25A(a)(1), or 32” for “section 32” in text.

    Enacted provision · exact public law section
    Sec. 207. None of the funds made available under this title may be used by the Federal Bureau of Prisons or the United States Marshals Service for the purpose of transporting an individual who is a prisoner pursuant to conviction for crime under State or Federal law and is classified as a maximum or high security prisoner, other than to a prison or other facility certified by the Federal Bureau of Prisons as appropriately secure for housing such a prisoner.

15. 2017

    Pub. L. 115–97 § 11001(b) · 131 Stat. 2054

    Amended · 26 U.S.C. § 6695(g)

    Pub. L. 115–97, § 11001(b), amended subsec. (g) generally. Prior to amendment, text read as follows: “Any person who is a tax return preparer with respect to any return or claim for refund who fails to comply with due diligence requirements imposed by the Secretary by regulations with respect to determining eligibility for, or the amount of, the credit allowable by section 24, 25A(a)(1), or 32 shall pay a penalty of $500 for each such failure.”

    Source evidence

    Code amendment note
    Subsec. (g). Pub. L. 115–97, § 11001(b), amended subsec. (g) generally. Prior to amendment, text read as follows: “Any person who is a tax return preparer with respect to any return or claim for refund who fails to comply with due diligence requirements imposed by the Secretary by regulations with respect to determining eligibility for, or the amount of, the credit allowable by section 24, 25A(a)(1), or 32 shall pay a penalty of $500 for each such failure.”

    Enacted provision · exact public law section
    (b) Due Diligence Tax Preparer Requirement With Respect to Head of Household Filing Status.— Subsection (g) of section 6695 is amended 26 USC 6695. to read as follows: “(g) Failure to Be Diligent in Determining Eligibility for Certain Tax Benefits.— Any person who is a tax return preparer with respect to any return or claim for refund who fails to comply with due diligence requirements imposed by the Secretary by regulations with respect to determining— “(1) eligibility to file as a head of household (as defined in section 2(b)) on the return, or “(2) eligibility for, or the amount of, the credit allowable by section 24, 25A(a)(1), or 32, shall pay a penalty of $500 for each such failure.” .

    Effective date note
    Amendment by section 11001(b) of Pub. L. 115–97 applicable to taxable years beginning after Dec. 31, 2017, see section 11001(c) of Pub. L. 115–97, set out as a note under section 1 of this title. Amendment by section 11002(d)(1)(MM) of Pub. L. 115–97 applicable to taxable years beginning after Dec. 31, 2017, see section 11002(e) of Pub. L. 115–97, set out as a note under section 1 of this title.

16. 2017

    Pub. L. 115–97 § 11002(d)(1)(MM) · 131 Stat. 2054

    Substituted · 26 U.S.C. § 6695(h)(1)

    Pub. L. 115–97, § 11002(d)(1)(MM), substituted “for ‘calendar year 2016’ in subparagraph (A)(ii)” for “for ‘calendar year 1992’ in subparagraph (B)”

    Source evidence

    Code amendment note
    Subsec. (h)(1). Pub. L. 115–97, § 11002(d)(1)(MM), substituted “for ‘calendar year 2016’ in subparagraph (A)(ii)” for “for ‘calendar year 1992’ in subparagraph (B)”.

    Enacted provision · exact public law section
    (MM) Section 6695(h)(1).

    Effective date note
    Amendment by section 11001(b) of Pub. L. 115–97 applicable to taxable years beginning after Dec. 31, 2017, see section 11001(c) of Pub. L. 115–97, set out as a note under section 1 of this title. Amendment by section 11002(d)(1)(MM) of Pub. L. 115–97 applicable to taxable years beginning after Dec. 31, 2017, see section 11002(e) of Pub. L. 115–97, set out as a note under section 1 of this title.

17. 2018

    Energy and Water Development and Related Agencies Appropriations Act, 2018

    Pub. L. 115–141 § 401(a)(299)(C) · 132 Stat. 348

    Inserted · 26 U.S.C. § 6695(h)(1)

    Pub. L. 115–141, § 401(a)(299)(C), inserted “an amount equal to” after “increased by” and “for the calendar year” after “section 1(f)(3)”

    Source evidence

    Code amendment note
    Subsec. (h)(1). Pub. L. 115–141, § 401(a)(299)(C), inserted “an amount equal to” after “increased by” and “for the calendar year” after “section 1(f)(3)”.

    Enacted provision · exact public law section
    Sec. 401. The Nuclear Regulatory Commission shall comply with the July 5, 2011, version of Chapter VI of its Internal Commission Procedures when responding to Congressional requests for information.

18. 2018

    Energy and Water Development and Related Agencies Appropriations Act, 2018

    Pub. L. 115–141 § 401(a)(309) · 132 Stat. 348

    Substituted · 26 U.S.C. § 6695(h)(2)

    Pub. L. 115–141, § 401(a)(309), substituted “paragraph (1)” for “subparagraph (A)” in introductory provisions

    Source evidence

    Code amendment note
    Subsec. (h)(2). Pub. L. 115–141, § 401(a)(309), substituted “paragraph (1)” for “subparagraph (A)” in introductory provisions.

    Enacted provision · exact public law section
    Sec. 401. The Nuclear Regulatory Commission shall comply with the July 5, 2011, version of Chapter VI of its Internal Commission Procedures when responding to Congressional requests for information.

19. 2018

    Energy and Water Development and Related Agencies Appropriations Act, 2018

    Pub. L. 115–141 § 401(a)(310) · 132 Stat. 348

    Substituted · 26 U.S.C. § 6695(h)(2)(B)

    Pub. L. 115–141, § 401(a)(310), substituted “subparagraph (A)” for “clause (i)”

    Source evidence

    Code amendment note
    Subsec. (h)(2)(B). Pub. L. 115–141, § 401(a)(310), substituted “subparagraph (A)” for “clause (i)”.

    Enacted provision · exact public law section
    Sec. 401. The Nuclear Regulatory Commission shall comply with the July 5, 2011, version of Chapter VI of its Internal Commission Procedures when responding to Congressional requests for information.

25 of 25 references resolved to an enrolled provision