
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: 26USC6663]

 
                     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 II--ACCURACY-RELATED AND FRAUD PENALTIES
 
Sec. 6663. Imposition of fraud penalty


(a) Imposition of penalty

    If any part of any underpayment of tax required to be shown on a 
return is due to fraud, there shall be added to the tax an amount equal 
to 75 percent of the portion of the underpayment which is attributable 
to fraud.

(b) Determination of portion attributable to fraud

    If the Secretary establishes that any portion of an underpayment is 
attributable to fraud, the entire underpayment shall be treated as 
attributable to fraud, except with respect to any portion of the 
underpayment which the taxpayer establishes (by a preponderance of the 
evidence) is not attributable to fraud.

(c) Special rule for joint returns

    In the case of a joint return, this section shall not apply with 
respect to a spouse unless some part of the underpayment is due to the 
fraud of such spouse.

(Added Pub. L. 101-239, title VII, Sec. 7721(a), Dec. 19, 1989, 103 
Stat. 2397.)

                  Section Referred to in Other Sections

    This section is referred to in section 6662 of this title.
