For purposes of this part, the term "underpayment" means the amount by which any tax imposed by this title exceeds the excess of-
For purposes of paragraph (2), the term "rebate" means so much of an abatement, credit, refund, or other repayment, as was made on the ground that the tax imposed was less than the excess of the amount specified in paragraph (1) over the rebates previously made. A rule similar to the rule of section 6211(b)(4) shall apply for purposes of this subsection.
The penalties provided in this part shall apply only in cases where a return of tax is filed (other than a return prepared by the Secretary under the authority of section 6020(b)).
No penalty shall be imposed under section 6662 or 6663 with respect to any portion of an underpayment if it is shown that there was a reasonable cause for such portion and that the taxpayer acted in good faith with respect to such portion.
Paragraph (1) shall not apply to any portion of an underpayment which is attributable to one or more transactions described in section 6662(b)(6) or to any disallowance of a deduction described in section 6662(b)(10).
In the case of any underpayment attributable to a substantial or gross valuation overstatement under chapter 1 with respect to charitable deduction property, paragraph (1) shall not apply. The preceding sentence shall not apply to a substantial valuation overstatement under chapter 1 if-
For purposes of this subsection-
The term "charitable deduction property" means any property contributed by the taxpayer in a contribution for which a deduction was claimed under section 170. For purposes of paragraph (3), such term shall not include any securities for which (as of the date of the contribution) market quotations are readily available on an established securities market.
The term "qualified appraisal" has the meaning given such term by section 170(f)(11)(E)(i).
The term "qualified appraiser" has the meaning given such term by section 170(f)(11)(E)(ii).
No penalty shall be imposed under section 6662A with respect to any portion of a reportable transaction understatement if it is shown that there was a reasonable cause for such portion and that the taxpayer acted in good faith with respect to such portion.
Paragraph (1) shall not apply to any portion of a reportable transaction understatement which is attributable to one or more transactions described in section 6662(b)(6).
Paragraph (1) shall not apply to any reportable transaction understatement unless-
A taxpayer failing to adequately disclose in accordance with section 6011 shall be treated as meeting the requirements of subparagraph (A) if the penalty for such failure was rescinded under section 6707A(d).
For purposes of paragraph (3)(C)-
A taxpayer shall be treated as having a reasonable belief with respect to the tax treatment of an item only if such belief-
An opinion of a tax advisor may not be relied upon to establish the reasonable belief of a taxpayer if-
A tax advisor is described in this clause if the tax advisor-
For purposes of clause (i), an opinion is disqualified if the opinion-
26 U.S.C. § 6664
EDITORIAL NOTES
CODIFICATION Section 1409(c) of Pub. L. 111-152, which directed the amendment of section 6664 without specifying the act to be amended, was executed to this section, which is section 6664 of the Internal Revenue Code of 1986, to reflect the probable intent of Congress. See 2010 Amendment notes below.Section 1219(a)(3), (c)(2) of Pub. L. 109-280, which directed the amendment of section 6664 without specifying the act to be amended, was executed to this section, which is section 6664 of the Internal Revenue Code of 1986, to reflect the probable intent of Congress. See 2006 Amendment notes below.
AMENDMENTS2022-Subsec. (c)(2). Pub. L. 117-328 inserted "or to any disallowance of a deduction described in section 6662(b)(10)" before period at end.2015-Subsec. (a). Pub. L. 114-113 inserted at end "A rule similar to the rule of section 6211(b)(4) shall apply for purposes of this subsection."2010-Subsec. (c)(2) to (4). Pub. L. 111-152, §1409(c)(1)(A), (C), added par. (2) and redesignated former pars. (2) and (3) as (3) and (4), respectively. See Codification note above.Subsec. (c)(4)(A). Pub. L. 111-152, §1409(c)(1)(B), substituted "paragraph (3)" for "paragraph (2)". See Codification note above.Subsec. (d)(2), (3). Pub. L. 111-152, §1409(c)(2)(A), (C), added par. (2) and redesignated former par. (2) as (3). Former par. (3) redesignated (4). See Codification note above.Subsec. (d)(4). Pub. L. 111-152, §1409(c)(2)(B), substituted "paragraph (3)(C)" for "paragraph (2)(C)" in introductory provisions. See Codification note above. Pub. L. 111-152, §1409(c)(2)(A), redesignated par. (3) as (4). See Codification note above.2006-Subsec. (c)(2). Pub. L. 109-280, §1219(a)(3), substituted "paragraph (1) shall not apply. The preceding sentence shall not apply to a substantial valuation overstatement under chapter 1 if-" for "paragraph (1) shall not apply unless-" in introductory provisions. See Codification note above.Subsec. (c)(3)(B), (C). Pub. L. 109-280, §1219(c)(2), amended subpars. (B) and (C) generally. Prior to amendment, subpars. (B) and (C) read as follows:"(B) QUALIFIED APPRAISER.-The term 'qualified appraiser' means any appraiser meeting the requirements of the regulations prescribed under section 170(a)(1)."(C) QUALIFIED APPRAISAL.-The term 'qualified appraisal' means any appraisal meeting the requirements of the regulations prescribed under section 170(a)(1)."See Codification note above.2004-Subsec. (c). Pub. L. 108-357, §812(c)(2)(B), inserted "for underpayments" after "exception" in heading.Subsec. (c)(1). Pub. L. 108-357, §812(c)(2)(A), substituted "section 6662 or 6663" for "this part".Subsec. (d). Pub. L. 108-357, §812(c)(1), added subsec. (d).
STATUTORY NOTES AND RELATED SUBSIDIARIES
EFFECTIVE DATE OF 2022 AMENDMENT Amendment by Pub. L. 117-328 applicable to contributions made after Dec. 29, 2022, see section 605(c)(1) of Pub. L. 117-328, set out as a note under section 170 of this title.
EFFECTIVE DATE OF 2015 AMENDMENT Pub. L. 114-113, div. Q, title II, §209(d)(1), Dec. 18, 2015, 129 Stat. 3085, provided that: "The amendment made by subsection (a) [amending this section] shall apply to-"(A) returns filed after the date of the enactment of this Act [Dec. 18, 2015], and"(B) returns filed on or before such date if the period specified in section 6501 of the Internal Revenue Code of 1986 for assessment of the taxes with respect to which such return relates has not expired as of such date."
EFFECTIVE DATE OF 2010 AMENDMENT Amendment by section 1409(c)(1) of Pub. L. 111-152 applicable to underpayments attributable to transactions entered into after Mar. 30, 2010, see section 1409(e)(2) of Pub. L. 111-152, set out as a note under section 6662 of this title.Amendment by section 1409(c)(2) of Pub. L. 111-152 applicable to understatements attributable to transactions entered into after Mar. 30, 2010, see section 1409(e)(3) of Pub. L. 111-152, set out as a note under section 6662 of this title.
EFFECTIVE DATE OF 2006 AMENDMENT Amendment by section 1219(a)(3) of Pub. L. 109-280 applicable to returns filed after Aug. 17, 2006, with special rule for certain easements, see section 1219(e)(1), (3), of Pub. L. 109-280, set out as a note under section 170 of this title.Amendment by section 1219(c)(2) of Pub. L. 109-280 applicable to appraisals prepared with respect to returns or submissions filed after Aug. 17, 2006, see section 1219(e)(2) of Pub. L. 109-280, set out as a note under section 170 of this title.
EFFECTIVE DATE OF 2004 AMENDMENT Amendment by Pub. L. 108-357 applicable to taxable years ending after Oct. 22, 2004, with special rule for application of subsec. (d)(3)(B) [now (d)(4)(B)] of this section, see section 812(f) of Pub. L. 108-357, as amended, set out as a note under section 6662 of this title.
EFFECTIVE DATESection applicable to returns the due date for which (determined without regard to extensions) is after Dec. 31, 1989, see section 7721(d) of Pub. L. 101-239, set out as an Effective Date of 1989 Amendment note under section 461 of this title.
- Internal Revenue Code of 1986
- The term "Internal Revenue Code of 1986" means this title, and the term "Internal Revenue Code of 1939" means the Internal Revenue Code enacted February 10, 1939, as amended.
- Secretary
- The term "Secretary" means the Secretary of the Treasury or his delegate.
- person
- The term "person" shall be construed to mean and include an individual, a trust, estate, partnership, association, company or corporation.
- taxpayer
- The term "taxpayer" means any person subject to any internal revenue tax.
- transaction
- The term "transaction" includes a series of transactions.