
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC6651]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                Subtitle F--Procedure and Administration
 
  CHAPTER 68--ADDITIONS TO THE TAX, ADDITIONAL AMOUNTS, AND ASSESSABLE 
                                PENALTIES
 
        Subchapter A--Additions to the Tax and Additional Amounts
 
                       PART I--GENERAL PROVISIONS
 
Sec. 6651. Failure to file tax return or to pay tax


(a) Addition to the tax

    In case of failure--
        (1) to file any return required under authority of subchapter A 
    of chapter 61 (other than part III thereof), subchapter A of chapter 
    51 (relating to distilled spirits, wines, and beer), or of 
    subchapter A of chapter 52 (relating to tobacco, cigars, cigarettes, 
    and cigarette papers and tubes), or of subchapter A of chapter 53 
    (relating to machine guns and certain other firearms), on the date 
    prescribed therefor (determined with regard to any extension of time 
    for filing), unless it is shown that such failure is due to 
    reasonable cause and not due to willful neglect, there shall be 
    added to the amount required to be shown as tax on such return 5 
    percent of the amount of such tax if the failure is for not more 
    than 1 month, with an additional 5 percent for each additional month 
    or fraction thereof during which such failure continues, not 
    exceeding 25 percent in the aggregate;
        (2) to pay the amount shown on tax on any return specified in 
    paragraph (1) on or before the date prescribed for payment of such 
    tax (determined with regard to any extension of time for payment), 
    unless it is shown that such failure is due to reasonable cause and 
    not due to willful neglect, there shall be added to the amount shown 
    as tax on such return 0.5 percent of the amount of such tax if the 
    failure is for not more than 1 month, with an additional 0.5 percent 
    for each additional month or fraction thereof during which such 
    failure continues, not exceeding 25 percent in the aggregate; or
        (3) to pay any amount in respect of any tax required to be shown 
    on a return specified in paragraph (1) which is not so shown 
    (including an assessment made pursuant to section 6213(b)) within 21 
    calendar days from the date of notice and demand therefor (10 
    business days if the amount for which such notice and demand is made 
    equals or exceeds $100,000), unless it is shown that such failure is 
    due to reasonable cause and not due to willful neglect, there shall 
    be added to the amount of tax stated in such notice and demand 0.5 
    percent of the amount of such tax if the failure is for not more 
    than 1 month, with an additional 0.5 percent for each additional 
    month or fraction thereof during which such failure continues, not 
    exceeding 25 percent in the aggregate.

In the case of a failure to file a return of tax imposed by chapter 1 
within 60 days of the date prescribed for filing of such return 
(determined with regard to any extensions of time for filing), unless it 
is shown that such failure is due to reasonable cause and not due to 
willful neglect, the addition to tax under paragraph (1) shall not be 
less than the lesser of $100 or 100 percent of the amount required to be 
shown as tax on such return.

(b) Penalty imposed on net amount due

    For purposes of--
        (1) subsection (a)(1), the amount of tax required to be shown on 
    the return shall be reduced by the amount of any part of the tax 
    which is paid on or before the date prescribed for payment of the 
    tax and by the amount of any credit against the tax which may be 
    claimed on the return,
        (2) subsection (a)(2), the amount of tax shown on the return 
    shall, for purposes of computing the addition for any month, be 
    reduced by the amount of any part of the tax which is paid on or 
    before the beginning of such month and by the amount of any credit 
    against the tax which may be claimed on the return, and
        (3) subsection (a)(3), the amount of tax stated in the notice 
    and demand shall, for the purpose of computing the addition for any 
    month, be reduced by the amount of any part of the tax which is paid 
    before the beginning of such month.

(c) Limitations and special rule

             (1) Additions under more than one paragraph

        With respect to any return, the amount of the addition under 
    paragraph (1) of subsection (a) shall be reduced by the amount of 
    the addition under paragraph (2) of subsection (a) for any month (or 
    fraction thereof) to which an addition to tax applies under both 
    paragraphs (1) and (2). In any case described in the last sentence 
    of subsection (a), the amount of the addition under paragraph (1) of 
    subsection (a) shall not be reduced under the preceding sentence 
    below the amount provided in such last sentence.

      (2) Amounts of tax shown more than amount required to be 
                                    shown

        If the amount required to be shown as tax on a return is less 
    than the amount shown as tax on such return, subsections (a)(2) and 
    (b)(2) shall be applied by substituting such lower amount.

(d) Increase in penalty for failure to pay tax in certain cases

                           (1) In general

        In the case of each month (or fraction thereof) beginning after 
    the day described in paragraph (2) of this subsection, paragraphs 
    (2) and (3) of subsection (a) shall be applied by substituting ``1 
    percent'' for ``0.5 percent'' each place it appears.

                           (2) Description

        For purposes of paragraph (1), the day described in this 
    paragraph is the earlier of--
            (A) the day 10 days after the date on which notice is given 
        under section 6331(d), or
            (B) the day on which notice and demand for immediate payment 
        is given under the last sentence of section 6331(a).

(e) Exception for estimated tax

    This section shall not apply to any failure to pay any estimated tax 
required to be paid by section 6654 or 6655.

(f) Increase in penalty for fraudulent failure to file

    If any failure to file any return is fraudulent, paragraph (1) of 
subsection (a) shall be applied--
        (1) by substituting ``15 percent'' for ``5 percent'' each place 
    it appears, and
        (2) by substituting ``75 percent'' for ``25 percent''.

(g) Treatment of returns prepared by Secretary under section 6020(b)

    In the case of any return made by the Secretary under section 
6020(b)--
        (1) such return shall be disregarded for purposes of determining 
    the amount of the addition under paragraph (1) of subsection (a), 
    but
        (2) such return shall be treated as the return filed by the 
    taxpayer for purposes of determining the amount of the addition 
    under paragraphs (2) and (3) of subsection (a).

(h) Limitation on penalty on individual's failure to pay for months 
        during period of installment agreement

    In the case of an individual who files a return of tax on or before 
the due date for the return (including extensions), paragraphs (2) and 
(3) of subsection (a) shall each be applied by substituting ``0.25'' for 
``0.5'' each place it appears for purposes of determining the addition 
to tax for any month during which an installment agreement under section 
6159 is in effect for the payment of such tax.

(Aug. 16, 1954, ch. 736, 68A Stat. 821; Pub. L. 90-364, title I, 
Sec. 103(e)(4), June 28, 1968, 82 Stat. 264; Pub. L. 91-172, title IX, 
Sec. 943(a), Dec. 30, 1969, 83 Stat. 727; Pub. L. 92-9, Sec. 3(j)(1), 
Apr. 1, 1971, 85 Stat. 22; Pub. L. 94-455, title XIX, 
Sec. 1904(b)(10)(A)(v), Oct. 4, 1976, 90 Stat. 1817; Pub. L. 97-248, 
title III, Sec. 318(a), (b), Sept. 3, 1982, 96 Stat. 610; Pub. L. 98-
369, div. A, title IV, Sec. 412(b)(8), July 18, 1984, 98 Stat. 792; Pub. 
L. 99-514, title XV, Sec. 1502(a), (b), Oct. 22, 1986, 100 Stat. 2741; 
Pub. L. 100-203, title X, Sec. 10301(b)(6), Dec. 22, 1987, 101 Stat. 
1330-429; Pub. L. 101-239, title VII, Sec. 7741(a), Dec. 19, 1989, 103 
Stat. 2404; Pub. L. 104-168, title III, Sec. 303(b)(2), title XIII, 
Sec. 1301(a), July 30, 1996, 110 Stat. 1458, 1475; Pub. L. 105-206, 
title III, Sec. 3303(a), July 22, 1998, 112 Stat. 742.)


                               Amendments

    1998--Subsec. (h). Pub. L. 105-206 added subsec. (h).
    1996--Subsec. (a)(3). Pub. L. 104-168, Sec. 303(b)(2), substituted 
``21 calendar days from the date of notice and demand therefor (10 
business days if the amount for which such notice and demand is made 
equals or exceeds $100,000)'' for ``10 days of the date of the notice 
and demand therefor''.
    Subsec. (g). Pub. L. 104-168, Sec. 1301(a), added subsec. (g).
    1989--Subsec. (f). Pub. L. 101-239 added subsec. (f).
    1987--Subsec. (e). Pub. L. 100-203 substituted ``section 6654 or 
6655'' for ``section 6154 or 6654''.
    1986--Subsec. (c)(1). Pub. L. 99-514, Sec. 1502(b), amended par. (1) 
generally, striking out the designation ``(A)'' before ``With respect 
to'', inserting ``(or fraction thereof)'', and striking out subpar. (B) 
which read as follows: ``With respect to any return, the maximum amount 
of the addition permitted under paragraph (3) of subsection (a) shall be 
reduced by the amount of the addition under paragraph (1) of subsection 
(a) (determined without regard to the last sentence of such subsection) 
which is attributable to the tax for which the notice and demand is made 
and which is not paid within 10 days of notice and demand.''
    Subsecs. (d), (e). Pub. L. 99-514, Sec. 1502(a), added subsec. (d) 
and redesignated former subsec. (d) as (e).
    1984--Subsec. (d). Pub. L. 98-369 in amending subsec. (d) generally, 
substituted in heading ``estimated tax'' for ``declarations of estimated 
tax'', struck out provisions making section inapplicable to any failure 
to file a declaration of estimated tax required by section 6015 or to 
any failure to pay any estimated tax required to be paid by section 
6153, and made section inapplicable to any failure to pay any estimated 
tax required to be paid by section 6654.
    1982--Subsec. (a). Pub. L. 97-248, Sec. 318(a), inserted provision 
that, in the case of a failure to file a return of tax imposed by 
chapter 1 within 60 days of the date prescribed for filing of such 
return (determined with regard to any extensions of time for filing), 
unless it is shown that such failure is due to reasonable cause and not 
due to willful neglect, the addition to tax under par. (1) shall not be 
less than the lesser of $100 or 100 percent of the amount required to be 
shown as tax on such return.
    Subsec. (c)(1)(A). Pub. L. 97-248, Sec. 318(b)(1), inserted 
provision that in any case described in last sentence of subsec. (a), 
the amount of the addition under par. (1) of subsec. (a) shall not be 
reduced under first sentence of this subpar. below the amount provided 
in such last sentence.
    Subsec. (c)(1)(B). Pub. L. 97-248, Sec. 318(b)(2), inserted 
``(determined without regard to the last sentence of such subsection)'' 
after ``paragraph (1) of subsection (a)''.
    1976--Subsec. (e). Pub. L. 94-455 struck out subsec. (e) which 
related to certain interest equalization tax returns.
    1971--Subsec. (e). Pub. L. 92-9 added subsec. (e).
    1969--Subsec. (a). Pub. L. 91-172 designated existing provisions as 
par. (1) and added pars. (2) and (3).
    Subsec. (b). Pub. L. 91-172 designated existing provisions as par. 
(1) and added pars. (2) and (3).
    Subsecs. (c), (d). Pub. L. 91-172 added subsec. (c), redesignated 
former subsec. (c) as (d) and struck out reference to section 6016 of 
this title and provided that this section would not be applicable for 
failure to pay any estimated tax required under section 6153 or 6154 of 
this title.
    1968--Subsec. (c). Pub. L. 90-364 struck out reference to section 
6016.


                    Effective Date of 1998 Amendment

    Pub. L. 105-206, title III, Sec. 3303(b), July 22, 1998, 112 Stat. 
742, provided that: ``The amendment made by this section [amending this 
section] shall apply for purposes of determining additions to the tax 
for months beginning after December 31, 1999.''


                    Effective Date of 1996 Amendment

    Amendment by section 303(b)(2) of Pub. L. 104-168 applicable in case 
of any notice and demand given after Dec. 31, 1996, see section 303(c) 
of Pub. L. 104-168, set out as a note under section 6601 of this title.
    Section 1301(b) of Pub. L. 104-168 provided that: ``The amendment 
made by subsection (a) [amending this section] shall apply in the case 
of any return the due date for which (determined without regard to 
extensions) is after the date of the enactment of this Act [July 30, 
1996].''


                    Effective Date of 1989 Amendment

    Section 7741(b) of Pub. L. 101-239 provided that: ``The amendment 
made by subsection (a) [amending this section] shall apply in the case 
of failures to file returns the due date for which (determined without 
regard to extensions) is after December 31, 1989.''


                    Effective Date of 1987 Amendment

    Amendment by Pub. L. 100-203 applicable to taxable years beginning 
after Dec. 31, 1987, see section 10301(c) of Pub. L. 100-203, set out as 
a note under section 585 of this title.


                    Effective Date of 1986 Amendment

    Section 1502(c) of Pub. L. 99-514 provided that:
    ``(1) Subsection (a).--The amendments made by subsection (a) 
[amending this section] shall apply--
        ``(A) to failures to pay which begin after December 31, 1986, 
    and
        ``(B) to failures to pay which begin on or before December 31, 
    1986, if after December 31, 1986--
            ``(i) notice (or renotice) under section 6331(d) of the 
        Internal Revenue Code of 1954 [now 1986] is given with respect 
        to such failure, or
            ``(ii) notice and demand for immediate payment of the 
        underpayment is made under the last sentence of section 6331(a) 
        of such Code.
In the case of a failure to pay described in subparagraph (B), paragraph 
(2) of section 6651(d) of such Code (as added by subsection (a)) shall 
be applied by taking into account the first notice (or renotice) after 
December 31, 1986.
    ``(2) Subsection (b).--The amendment made by subsection (b) 
[amending this section] shall apply to amounts assessed after December 
31, 1986, with respect to failures to pay which begin before, on, or 
after such date.''


                    Effective Date of 1984 Amendment

    Amendment by Pub. L. 98-369 applicable with respect to taxable years 
beginning after Dec. 31, 1984, see section 414(a)(1) of Pub. L. 98-369, 
set out as a note under section 6654 of this title.


                    Effective Date of 1982 Amendment

    Section 318(c) of Pub. L. 97-248 provided that: ``The amendments 
made by this section [amending this section] shall apply to returns the 
due date for filing of which (including extensions) is after December 
31, 1982.''


                    Effective Date of 1971 Amendment

    Section 3(j)(3) of Pub. L. 92-9 provided that: ``The amendments made 
by this subsection [amending this section and section 6680 of this 
title] shall apply with respect to returns required to be filed on or 
after the date of the enactment of this Act [Apr. 1, 1971].''


                    Effective Date of 1969 Amendment

    Section 943(d) of Pub. L. 91-172 provided that: ``The amendments 
made by subsections (a) [amending this section] and (c) [amending 
sections 3121, 5684, and 6653 of this title] shall apply with respect to 
returns the date prescribed by law (without regard to any extension of 
time) for filing of which is after December 31, 1969, and with respect 
to notices and demands for payment of tax made after December 31, 1969. 
The amendment made by subsection (b) [amending section 6656 of this 
title] shall apply with respect to deposits the time for making of which 
is after December 31, 1969.''


                    Effective Date of 1968 Amendment

    Amendment by Pub. L. 90-364 applicable with respect to taxable years 
beginning after Dec. 31, 1967, except as provided by section 104 of Pub. 
L. 90-364, see section 103(f) of Pub. L. 90-364, set out as a note under 
section 243 of this title.


                    Illegal Tax Protester Designation

    Pub. L. 105-206, title III, Sec. 3707, July 22, 1998, 112 Stat. 778, 
provided that:
    ``(a) Prohibition.--The officers and employees of the Internal 
Revenue Service--
        ``(1) shall not designate taxpayers as illegal tax protesters 
    (or any similar designation); and
        ``(2) in the case of any such designation made on or before the 
    date of the enactment of this Act [July 22, 1998]--
            ``(A) shall remove such designation from the individual 
        master file; and
            ``(B) shall disregard any such designation not located in 
        the individual master file.
    ``(b) Designation of Nonfilers Allowed.--An officer or employee of 
the Internal Revenue Service may designate any appropriate taxpayer as a 
nonfiler, but shall remove such designation once the taxpayer has filed 
income tax returns for 2 consecutive taxable years and paid all taxes 
shown on such returns.
    ``(c) Effective Date.--The provisions of this section shall take 
effect on the date of the enactment of this Act [July 22, 1998], except 
that the removal of any designation under subsection (a)(2)(A) shall not 
be required to begin before January 1, 1999.''

                  Section Referred to in Other Sections

    This section is referred to in sections 3121, 5684, 5761, 6013, 
6404, 6601, 6658, 6665, 6751, 7518 of this title; title 30 section 932; 
title 46 App. section 1177.
