
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: 26USC6664]

 
                     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. 6664. Definitions and special rules


(a) Underpayment

    For purposes of this part, the term ``underpayment'' means the 
amount by which any tax imposed by this title exceeds the excess of--
        (1) the sum of--
            (A) the amount shown as the tax by the taxpayer on his 
        return, plus
            (B) amounts not so shown previously assessed (or collected 
        without assessment), over

        (2) the amount of rebates made.

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.

(b) Penalties applicable only where return filed

    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)).

(c) Reasonable cause exception

                           (1) In general

        No penalty shall be imposed under this part 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.

        (2) Special rule for certain valuation overstatements

        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 
    unless--
            (A) the claimed value of the property was based on a 
        qualified appraisal made by a qualified appraiser, and
            (B) in addition to obtaining such appraisal, the taxpayer 
        made a good faith investigation of the value of the contributed 
        property.

                           (3) Definitions

        For purposes of this subsection--

        (A) Charitable deduction property

            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 (2), 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.

        (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).

(Added Pub. L. 101-239, title VII, Sec. 7721(a), Dec. 19, 1989, 103 
Stat. 2398.)

                  Section Referred to in Other Sections

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