§6662A. Imposition of accuracy-related penalty on understatements with respect to reportable transactions — Inbound Citations
26 U.S.C. § 6662A
Cited by 11 provisions in release 119-102.
Citations to 26 U.S.C. § 6662A as a whole
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(A) For purposes of paragraph (1), the term “understatement” means the excess of—(i) the amount of the tax required to be shown on the return for the taxable year, over(ii) the amount of the tax imposed which is shown on the return, reduced by any rebate (within the meaning of section 6211(b)(2)).The excess under the preceding sentence shall be determined without regard to items to which section 6662A applies.
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(1) No penalty shall be imposed under section 6662A with respect to any portion of a reportable transaction understatement 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.
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(C) If the position is with respect to a tax shelter (as defined in section 6662(d)(2)(C)(ii)) or a reportable transaction to which section 6662A applies, the position is described in this paragraph unless it is reasonable to believe that the position would more likely than not be sustained on its merits.
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(B) is required to pay a penalty under section 6662A with respect to any reportable transaction at a rate prescribed under section 6662A(c), or
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(C) is required to pay a penalty under section 6662(h) with respect to any reportable transaction and would (but for section 6662A(e)(2)(B)) have been subject to penalty under section 6662A at a rate prescribed under section 6662A(c),
Citations to §6662A(b)
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(m) No deduction shall be allowed under this chapter for any interest paid or accrued under section 6601 on any underpayment of tax which is attributable to the portion of any reportable transaction understatement (as defined in section 6662A(b)) with respect to which the requirement of section 6664(d)(2)(A)1 is not met.
Citations to §6662A(c)
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(B) is required to pay a penalty under section 6662A with respect to any reportable transaction at a rate prescribed under section 6662A(c), or
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(C) is required to pay a penalty under section 6662(h) with respect to any reportable transaction and would (but for section 6662A(e)(2)(B)) have been subject to penalty under section 6662A at a rate prescribed under section 6662A(c),
Citations to §6662A(e)(1)
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(b) This section shall apply to the portion of any underpayment which is attributable to 1 or more of the following:(1) Negligence or disregard of rules or regulations.(2) Any substantial understatement of income tax.(3) Any substantial valuation misstatement under chapter 1.(4) Any substantial overstatement of pension liabilities.(5) Any substantial estate or gift tax valuation understatement.(6) Any disallowance of claimed tax benefits by reason of a transaction lacking economic substance (within the meaning of section 7701(o)) or failing to meet the requirements of any similar rule of law.(7) Any undisclosed foreign financial asset understatement.(8) Any inconsistent estate basis.(9) Any overstatement of the deduction provided in section 170(p).(10) Any disallowance of a deduction by reason of section 170(h)(7).This section shall not apply to any portion of an underpayment on which a penalty is imposed under section 6663. Except as provided in paragraph (1) or (2)(B) of section 6662A(e), this section shall not apply to the portion of any underpayment which is attributable to a reportable transaction understatement on which a penalty is imposed under section 6662A.
Citations to §6662A(e)(2)(B)
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(b) This section shall apply to the portion of any underpayment which is attributable to 1 or more of the following:(1) Negligence or disregard of rules or regulations.(2) Any substantial understatement of income tax.(3) Any substantial valuation misstatement under chapter 1.(4) Any substantial overstatement of pension liabilities.(5) Any substantial estate or gift tax valuation understatement.(6) Any disallowance of claimed tax benefits by reason of a transaction lacking economic substance (within the meaning of section 7701(o)) or failing to meet the requirements of any similar rule of law.(7) Any undisclosed foreign financial asset understatement.(8) Any inconsistent estate basis.(9) Any overstatement of the deduction provided in section 170(p).(10) Any disallowance of a deduction by reason of section 170(h)(7).This section shall not apply to any portion of an underpayment on which a penalty is imposed under section 6663. Except as provided in paragraph (1) or (2)(B) of section 6662A(e), this section shall not apply to the portion of any underpayment which is attributable to a reportable transaction understatement on which a penalty is imposed under section 6662A.
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(C) is required to pay a penalty under section 6662(h) with respect to any reportable transaction and would (but for section 6662A(e)(2)(B)) have been subject to penalty under section 6662A at a rate prescribed under section 6662A(c),