Amended 1981
- 1981 Pub. L. 97-34 Pub. L. 97–34 struck out “allowances based on itemized deductions” after “withholding” in section catchline.
Cases: Elias v. Connett, 908 F.2d 521 (9th Cir. 1990); Weber v. Commissioner, 122 T.C. 258 (2004)
Forms: Form W-4
(a) Civil penalty In addition to any criminal penalty provided by law, if—
Amended 1981
- 1981 Pub. L. 97-34 Pub. L. 97–34 substituted 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.
Cases: Castillo v. Commissioner, 84 T.C. 405 (1985)
Cited by 4
(1) any individual makes a statement under section 3402 or section 3406 which results in a decrease in the amounts deducted and withheld under chapter 24, and
Amended 1982, 1983
- 1983 Pub. L. 98-67 Pub. L. 98–67 inserted reference to section 3406 and repealed amendments made by Pub. L. 97–248. See 1982 Amendment note below.
- 1982 Pub. L. 97-248 Pub. L. 97–248 provided 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) of Pub. L. 98–67, title I, Aug. 5, 1983, 97 Stat. 369, repealed subtitle A (§§ 301–308) of title III of Pub. L. 97–248 as 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.
(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.
(b) Exception 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—
Amended 1969, 1974, 1981
- 1981 Pub. L. 97-34 Pub. L. 97–34 added subsec. (b) and redesignated former subsec. (b) as (c).
- 1974 Pub. L. 93-406 Pub. L. 93–406 substituted “and certain excise” for “chapter 42.”
- 1969 Pub. L. 91-172 Pub. L. 91–172 inserted reference to chapter 42 taxes.
Cited by 1
(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).
Amended 1981
- 1981 Pub. L. 97-34 Pub. L. 97–34 added subsec. (b) and redesignated former subsec. (b) as (c).