§ 6702. Frivolous tax submissions
(a)
Civil penalty for frivolous tax returns
A person shall pay a penalty of $5,000 if—
(b)
Civil penalty for specified frivolous submissions
(1)
Imposition of penalty
Except as provided in paragraph (3), any person who submits a specified frivolous submission shall pay a penalty of $5,000.
(2)
Specified frivolous submission
For purposes of this section—
(A)
Specified frivolous submission
The term “specified frivolous submission” means a specified submission if any portion of such submission—
(3)
Opportunity to withdraw submission
If the Secretary provides a person with notice that a submission is a specified frivolous submission and such person withdraws such submission within 30 days after such notice, the penalty imposed under paragraph (1) shall not apply with respect to such submission.
(c)
Listing of frivolous positions
The Secretary shall prescribe (and periodically revise) a list of positions which the Secretary has identified as being frivolous for purposes of this subsection. The Secretary shall not include in such list any position that the Secretary determines meets the requirement of section
6662
(d)(2)(B)(ii)(II).
(d)
Reduction of penalty
The Secretary may reduce the amount of any penalty imposed under this section if the Secretary determines that such reduction would promote compliance with and administration of the Federal tax laws.
(e)
Penalties in addition to other penalties
The penalties imposed by this section shall be in addition to any other penalty provided by law.