shall pay a penalty with respect to each such document in the amount determined under subsection (b).
Except 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-
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.
For 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.
Except as provided by paragraphs (2) and (3), the penalty imposed by this section shall be in addition to any other penalty provided by law.
26 U.S.C. § 6701
AMENDMENTS1989-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 AMENDMENT Pub. 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]."
- The term "corporation" includes associations, joint-stock companies, and insurance companies.
- The term "person" shall be construed to mean and include an individual, a trust, estate, partnership, association, company or corporation.
- The term "taxpayer" means any person subject to any internal revenue tax.