U.S. Code > Title 26 Internal Revenue Code > Subtitle F—Procedure and Administration (§§ 6001—7874) > CHAPTER 68—ADDITIONS TO THE TAX, ADDITIONAL AMOUNTS, AND ASSESSABLE PENALTIES (§§ 6651—6751) > Subchapter B—Assessable Penalties (§§ 6671—6725) > PART I—GENERAL PROVISIONS (§§ 6671—6720C) > § 6676. Erroneous claim for refund or credit

§ 6676. Erroneous claim for refund or credit

(a) Civil penalty
If a claim for refund or credit with respect to income tax (other than a claim for a refund or credit relating to the earned income credit under section 32) is made for an excessive amount, unless it is shown that the claim for such excessive amount has a reasonable basis, the person making such claim shall be liable for a penalty in an amount equal to 20 percent of the excessive amount.
(b) Excessive amount
For purposes of this section, the term “excessive amount” means in the case of any person the amount by which the amount of the claim for refund or credit for any taxable year exceeds the amount of such claim allowable under this title for such taxable year.
(c) Noneconomic substance transactions treated as lacking reasonable basis
For purposes of this section, any excessive amount which is attributable to any transaction described in section 6662 (b)(6) shall not be treated as having a reasonable basis.
(d) Coordination with other penalties
This section shall not apply to any portion of the excessive amount of a claim for refund or credit which is subject to a penalty imposed under part II of subchapter A of chapter 68.