
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC6657]

 
                     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. 6657. Bad checks

    If any check or money order in payment of any amount receivable 
under this title is not duly paid, in addition to any other penalties 
provided by law, there shall be paid as a penalty by the person who 
tendered such check, upon notice and demand by the Secretary, in the 
same manner as tax, an amount equal to 2 percent of the amount of such 
check, except that if the amount of such check is less than $750, the 
penalty under this section shall be $15 or the amount of such check, 
whichever is the lesser. This section shall not apply if the person 
tendered such check in good faith and with reasonable cause to believe 
that it would be duly paid.

(Aug. 16, 1954, ch. 736, 68A Stat. 826; Pub. L. 94-455, title XIX, 
Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 100-647, title 
V, Sec. 5071(a), Nov. 10, 1988, 102 Stat. 3681.)


                               Amendments

    1988--Pub. L. 100-647 substituted ``2'' for ``1'', ``$750'' for 
``$500'', and ``$15'' for ``$5''.
    1976--Pub. L. 94-455 struck out ``or his delegate'' after 
``Secretary''.


                    Effective Date of 1988 Amendment

    Section 5071(b) of Pub. L. 100-647 provided that: ``The amendment 
made by subsection (a) [amending this section] shall apply to checks or 
money orders received after the date of the enactment of this Act [Nov. 
10, 1988].''
