§ 6662A. Imposition of accuracy-related penalty on understatements with respect to reportable transactions
(a)
Imposition of penalty
If a taxpayer has a reportable transaction understatement for any taxable year, there shall be added to the tax an amount equal to 20 percent of the amount of such understatement.
(b)
Reportable transaction understatement
For purposes of this section—
(1)
In general
The term “reportable transaction understatement” means the sum of—
(A)
the product of—
(B)
the amount of the decrease (if any) in the aggregate amount of credits determined under subtitle A which results from a difference between the taxpayer’s treatment of an item to which this section applies (as shown on the taxpayer’s return of tax) and the proper tax treatment of such item.
For purposes of subparagraph (A), any reduction of the excess of deductions allowed for the taxable year over gross income for such year, and any reduction in the amount of capital losses which would (without regard to section
1211) be allowed for such year, shall be treated as an increase in taxable income.
(e)
Special rules
(1)
Coordination with penalties, etc., on other understatements
(2)
Coordination with other penalties
(A)
Coordination with fraud penalty
This section shall not apply to any portion of an understatement on which a penalty is imposed under section
6663.
(3)
Special rule for amended returns
Except as provided in regulations, in no event shall any tax treatment included with an amendment or supplement to a return of tax be taken into account in determining the amount of any reportable transaction understatement if the amendment or supplement is filed after the earlier of the date the taxpayer is first contacted by the Secretary regarding the examination of the return or such other date as is specified by the Secretary.
[1] See References in Text note below.