---
kind: "section"
citation: "26 U.S.C. § 6703"
title: "26"
title_heading: "Internal Revenue Code"
number: "6703"
heading: "Rules applicable to penalties under sections 6700, 6701, and 6702"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/26/6703"
units:
  - "Subtitle F — Procedure and Administration"
  - "Chapter 68 — Additions to the Tax, Additional Amounts, and Assessable Penalties"
  - "Subchapter B — Assessable Penalties"
  - "Part I — General Provisions"
---

# §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](/usc/26/7701.md?p=a-1) is liable for a penalty under section [6700](/usc/26/6700.md), [6701](/usc/26/6701.md), or [6702](/usc/26/6702.md), the burden of proof with respect to such issue shall be on the [Secretary](/usc/26/7701.md?p=a-11-B).
- (b) **Deficiency procedures not to apply—** Subchapter B of [chapter 63](/usc/26/chstF/ch63.md) (relating to [deficiency](/usc/26/6211.md?p=a) procedures) shall not apply with respect to the assessment or collection of the penalties provided by sections [6700](/usc/26/6700.md), [6701](/usc/26/6701.md), 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](/usc/26/6700.md) or [6701](/usc/26/6701.md) is made against any [person](/usc/26/7701.md?p=a-1), such [person](/usc/26/7701.md?p=a-1) 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](/usc/26/7701.md?p=a-21) 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)](#c-2). Notwithstanding the provisions of [section 7421(a)](/usc/26/7421.md?p=a), the beginning of such proceeding or [levy](/usc/26/7701.md?p=a-21) 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)](#c-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](/usc/26/6700.md) or [6701](/usc/26/6701.md) 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](/usc/26/7701.md?p=a-1) fails to begin a proceeding in the appropriate [United States](/usc/26/7701.md?p=a-9) district court for the determination of his liability for such penalty, [paragraph (1)](#c-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](/usc/26/6502.md) on the collection by [levy](/usc/26/7701.md?p=a-21) or by a proceeding in court in respect of any penalty described in [paragraph (1)](#c-1) shall be suspended for the period during which the [Secretary](/usc/26/7701.md?p=a-11-B) is prohibited from collecting by [levy](/usc/26/7701.md?p=a-21) or a proceeding in court.

## Source credit

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

## Notes

### Editorial Notes

### Amendments

1989—Subsec. (c)(1). Pub. L. 101–239, § 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, § 7736(a), substituted “section 6700 or 6701” for “section 6700, 6701, or 6702”.

Subsec. (c)(2). Pub. L. 101–239, § 7736(a), substituted “section 6700 or 6701” for “section 6700, 6701, or 6702”.

### Statutory Notes and Related Subsidiaries

### Effective Date of 1989 Amendment

Pub. L. 101–239, title VII, § 7736(b), Dec. 19, 1989, 103 Stat. 2404, provided that: “The amendment made by subsection (a) [amending this section] shall apply to returns filed after December 31, 1989.”

### Effective Date

Pub. L. 97–248, title III, § 322(c), Sept. 3, 1982, 96 Stat. 613, 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].”