
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: 26USC6703]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                Subtitle F--Procedure and Administration
 
  CHAPTER 68--ADDITIONS TO THE TAX, ADDITIONAL AMOUNTS, AND ASSESSABLE 
                                PENALTIES
 
                   Subchapter B--Assessable Penalties
 
                       PART I--GENERAL PROVISIONS
 
Sec. 6703. Rules applicable to penalties under sections 6700, 
        6701, and 6702
        

(a) Burden of proof

    In any proceeding involving the issue of whether or not any person 
is liable for a penalty under section 6700, 6701, or 6702, the burden of 
proof with respect to such issue shall be on the Secretary.

(b) Deficiency procedures not to apply

    Subchapter B of chapter 63 (relating to deficiency procedures) shall 
not apply with respect to the assessment or collection of the penalties 
provided by sections 6700, 6701, and 6702.

(c) Extension of period of collection where person pays 15 percent of 
        penalty

                           (1) In general

        If, within 30 days after the day on which notice and demand of 
    any penalty under section 6700 or 6701 is made against any person, 
    such person pays an amount which is not less than 15 percent of the 
    amount of such penalty and files a claim for refund of the amount so 
    paid, no levy or proceeding in court for the collection of the 
    remainder of such penalty shall be made, begun, or prosecuted until 
    the final resolution of a proceeding begun as provided in paragraph 
    (2). Notwithstanding the provisions of section 7421(a), the 
    beginning of such proceeding or levy during the time such 
    prohibition is in force may be enjoined by a proceeding in the 
    proper court. Nothing in this paragraph shall be construed to 
    prohibit any counterclaim for the remainder of such penalty in a 
    proceeding begun as provided in paragraph (2).

     (2) Person must bring suit in district court to determine 
                          his liability for penalty

        If, within 30 days after the day on which his claim for refund 
    of any partial payment of any penalty under section 6700 or 6701 is 
    denied (or, if earlier, within 30 days after the expiration of 6 
    months after the day on which he filed the claim for refund), the 
    person fails to begin a proceeding in the appropriate United States 
    district court for the determination of his liability for such 
    penalty, paragraph (1) shall cease to apply with respect to such 
    penalty, effective on the day following the close of the applicable 
    30-day period referred to in this paragraph.

       (3) Suspension of running of period of limitations on 
                                 collection

        The running of the period of limitations provided in section 
    6502 on the collection by levy or by a proceeding in court in 
    respect of any penalty described in paragraph (1) shall be suspended 
    for the period during which the Secretary is prohibited from 
    collecting by levy or a proceeding in court.

(Added Pub. L. 97-248, title III, Sec. 322(a), Sept. 3, 1982, 96 Stat. 
612; amended Pub. L. 101-239, title VII, Secs. 7736(a), 7737(a), Dec. 
19, 1989, 103 Stat. 2404.)


                               Amendments

    1989--Subsec. (c)(1). Pub. L. 101-239, Sec. 7737(a), inserted at end 
``Nothing in this paragraph shall be construed to prohibit any 
counterclaim for the remainder of such penalty in a proceeding begun as 
provided in paragraph (2).''
    Pub. L. 101-239, Sec. 7736(a), substituted ``section 6700 or 6701'' 
for ``section 6700, 6701, or 6702''.
    Subsec. (c)(2). Pub. L. 101-239, Sec. 7736(a), substituted ``section 
6700 or 6701'' for ``section 6700, 6701, or 6702''.


                    Effective Date of 1989 Amendment

    Section 7736(b) of Pub. L. 101-239 provided that: ``The amendment 
made by subsection (a) [amending this section] shall apply to returns 
filed after December 31, 1989.''


                             Effective Date

    Section 322(c) of Pub. L. 97-248 provided that: ``The amendments 
made by this section [enacting this section] shall take effect on the 
day after the date of the enactment of this Act [Sept. 3, 1982].''
