In addition to any criminal penalty provided by law, if—
(1)any individual makes a statement under section
3406 which results in a decrease in the amounts deducted and withheld under chapter 24, and
(2)as of the time such statement was made, there was no reasonable basis for such statement,
such individual shall pay a penalty of $500 for such statement.
The Secretary may waive (in whole or in part) the penalty imposed under subsection (a) if the taxes imposed with respect to the individual under subtitle A for the taxable year are equal to or less than the sum of—
(1)the credits against such taxes allowed by part IV of subchapter A of chapter 1, and
(2)the payments of estimated tax which are considered payments on account of such taxes.
(c) Deficiency procedures not to apply
Subchapter B of chapter 63 (relating to deficiency procedures for income, estate, gift, and certain excise taxes) shall not apply in respect to the assessment or collection of any penalty imposed by subsection (a).
1982—Subsec. (a)(1). Pub. L. 97–248provided that, applicable to payments of interest, dividends, and patronage dividends paid or credited after June 30, 1983, par. (1) is amended by inserting “or section
3452(f)(1)(A)” after “section
3402”. Section 102(a), (b) ofPub. L. 98–67, title I, Aug. 5, 1983, 97 Stat. 369, repealed subtitle A (§§ 301–308) of title III of Pub. L. 97–248as of the close of June 30, 1983, and provided that the Internal Revenue Code of 1954 [now 1986] [this title] shall be applied and administered (subject to certain exceptions) as if such subtitle A (and the amendments made by such subtitle A) had not been enacted.
1981—Pub. L. 97–34struck out “allowances based on itemized deductions” after “withholding” in section catchline.
Subsec. (a). Pub. L. 97–34substituted provisions relating to imposition of penalty of $500 for statement under section
3402 resulting in decreased amounts withheld under chapter 24 and no reasonable basis existed for making such statement at the time it was made, for provisions relating to imposition of penalty of $50 for statement under section
3402(f)(1)(F) concerning amount of wages under chapter 24, or itemized deductions under section
3402(m), and provisions setting forth conditions for mitigation of such penalty.
Subsecs. (b), (c). Pub. L. 97–34added subsec. (b) and redesignated former subsec. (b) as (c).
1974—Subsec. (b). Pub. L. 93–406substituted “and certain excise” for “chapter 42.”
1969—Subsec. (b). Pub. L. 91–172inserted reference to chapter 42 taxes.
Effective Date of 1983 Amendment
Amendment by section 107(a) ofPub. L. 98–67effective Aug. 5, 1983, see section 110(c) ofPub. L. 98–67, set out as a note under section
31 of this title.
Effective Date of 1981 Amendment
Pub. L. 97–34, title VII, § 721(d),Aug. 13, 1981, 95 Stat. 341, provided that: “The amendments made by this section [amending sections
7205 of this title] shall apply to acts and failures to act after December 31, 1981.”
Effective Date of 1974 Amendment
Amendment by Pub. L. 93–406applicable, except as otherwise provided in section 1017(c) through (i) ofPub. L. 93–406, for plan years beginning after Sept. 2, 1974, but, in the case of plans in existence on Jan. 1, 1974, amendment by Pub. L. 93–406applicable for plan years beginning after Dec. 31, 1975, see section 1017 ofPub. L. 93–406, set out as an Effective Date; Transitional Rules note under section
410 of this title.
The table below lists the classification updates, since Jan. 3, 2012, for this section. Updates to a broader range of sections may be found at the update page for containing chapter, title, etc.
The most recent Classification Table update that we have noticed was Tuesday, August 13, 2013
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