# 26 U.S.C. § 6663: Imposition of fraud penalty

Source: OLRC release point 119-134 <https://uscode.house.gov/us/usc/119-134/t26/s6663>. Cite pinpoints as 26 U.S.C. § 6663(a)(1).

## § 6663(a) Imposition of penalty

If any part of any underpayment of tax required to be shown on a return is due to fraud, there shall be added to the tax an amount equal to 75 percent of the portion of the underpayment which is attributable to fraud.

## § 6663(b) Determination of portion attributable to fraud

If the Secretary establishes that any portion of an underpayment is attributable to fraud, the entire underpayment shall be treated as attributable to fraud, except with respect to any portion of the underpayment which the taxpayer establishes (by a preponderance of the evidence) is not attributable to fraud.

## § 6663(c) Special rule for joint returns

In the case of a joint return, this section shall not apply with respect to a spouse unless some part of the underpayment is due to the fraud of such spouse.

## Leading cases

- [Kevin J. Morse v. Commissioner, 419 F.3d 829 (8th Cir. 2005)](https://www.courtlistener.com/opinion/791530/kevin-j-morse-v-commissioner-of-internal-revenue-service/)
- [Feller v. Commissioner, 135 T.C. 497 (2010)](https://www.courtlistener.com/opinion/4561136/feller-v-commissioner/)
- [Estate of Trompeter v. Commissioner, 111 T.C. 57 (1998)](https://www.courtlistener.com/opinion/4695569/estate-of-trompeter-v-commissioner/)

## Connections

Cites: none

Cited by: § 6662 Imposition of accuracy-related penalty on underpayments; § 6662A Imposition of accuracy-related penalty on understatements with respect to reportable transactions

## Amendments

- 1989-12-19: [Pub. L. 101-239](/26/act/101-239.md), 103 Stat. 2397