§ 6695 Other assessable penalties with respect to the preparation of tax returns for other persons

OLRC 119-134 · eCFR 2026-10-19 · 17 regs · 11 amending Acts

Enacted 1976 · Pub. L. 94-455 Amended · 11 Acts

197619781984198519891997200720112014201520172018(a) Failure to furnish copy to taxpayer(b) Failure to sign return(c) Failure to furnish identifying number(d) Failure to retain copy or list(e) Failure to file correct information returns(f) Negotiation of check(g) Failure to be diligent in determining eligibility for certain tax benefits(h) Adjustment for inflation
Connections Cited by 0 · Cites 7
    § 6695 Other assessable penalties with respect to the preparation of tax returns for other persons
    § 1.6695-1 Other assessable penalties with respect to the preparation of tax returns for other persons.§ 1.6695-2 Tax return preparer due diligence requirements for certain tax returns and claims.§ 20.6695-1 Other assessable penalties with respect to the preparation of tax returns for other persons.§ 25.6695-1 Other assessable penalties with respect to the preparation of tax returns for other persons.§ 26.6695-1 Other assessable penalties with respect to the preparation of tax returns for other persons.§ 28.6695-1 Other assessable penalties with respect to the preparation of tax returns for other persons.§ 31.6695-1 Other assessable penalties with respect to the preparation of tax returns for other persons.§ 40.6695-1 Other assessable penalties with respect to the preparation of tax returns for other persons.§ 41.6695-1 Other assessable penalties with respect to the preparation of tax returns for other persons.§ 44.6695-1 Other assessable penalties with respect to the preparation of tax returns for other persons.§ 53.6695-1 Other assessable penalties with respect to the preparation of tax returns or claims for refund for other persons.§ 54.6695-1 Other assessable penalties with respect to the preparation of tax returns for other persons.§ 55.6695-1 Other assessable penalties with respect to the preparation of tax returns or claims for refund for other persons.§ 56.6695-1 Other assessable penalties with respect to the preparation of tax returns or claims for refund for other persons.§ 58.6695-1 Other assessable penalties with respect to the preparation of tax returns or claims for refund for other persons.§ 156.6695-1 Other assessable penalties with respect to the preparation of tax returns or claims for refund for other persons.§ 157.6695-1 Other assessable penalties with respect to the preparation of tax returns or claims for refund for other persons.
    Amended 2007
    • 2007 Pub. L. 110-28 Pub. L. 110–28, § 8246(a)(2)(G)(i)(I), struck out “income” before “tax” in section catchline.

    Cases: United States v. Nordbrock, 38 F.3d 440 (9th Cir. 1994)

    Forms: Form 8867; Form 1098-T; Form 1040; Form 8863

    Final rules 12

      (a) Failure to furnish copy to taxpayer Any person who is a tax return preparer with respect to any return or claim for refund who fails to comply with section 6107(a) with respect to such return or claim shall pay a penalty of $50 for such failure, unless it is shown that such failure is due to reasonable cause and not due to willful neglect. The maximum penalty imposed under this subsection on any person with respect to documents filed during any calendar year shall not exceed $25,000.

      Amended 1989, 2007
      • 2007 Pub. L. 110-28 Pub. L. 110–28, § 8246(a)(2)(G)(i)(II), substituted “a tax return preparer” for “an income tax return preparer”.
      • 1989 Pub. L. 101-239 Pub. L. 101–239, § 7733(a)–(c), substituted “$50” for “$25” and inserted at end “The maximum penalty imposed under this subsection on any person with respect to documents filed during any calendar year shall not exceed $25,000.”
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        (b) Failure to sign return Any person who is a tax return preparer with respect to any return or claim for refund, who is required by regulations prescribed by the Secretary to sign such return or claim, and who fails to comply with such regulations with respect to such return or claim shall pay a penalty of $50 for such failure, unless it is shown that such failure is due to reasonable cause and not due to willful neglect. The maximum penalty imposed under this subsection on any person with respect to documents filed during any calendar year shall not exceed $25,000.

        Amended 1984, 1985, 1989, 2007
        • 2007 Pub. L. 110-28 Pub. L. 110–28, § 8246(a)(2)(G)(i)(II), substituted “a tax return preparer” for “an income tax return preparer”.
        • 1989 Pub. L. 101-239 Pub. L. 101–239, § 7733(a)–(c), substituted “$50” for “$25” and inserted at end “The maximum penalty imposed under this subsection on any person with respect to documents filed during any calendar year shall not exceed $25,000.”
        • 1985 Pub. L. 99-44 Pub. L. 99–44 repealed Pub. L. 98–369, § 179(b)(2), which amended subsec. (b), and provided that the Internal Revenue Code of 1954 [now 1986] [this title] shall be applied and administered as if section 179(b)(2) (and the amendments made by such section) had not been enacted. See 1984 Amendment note and Effective Date of 1985 Amendment note below.
        • 1984 Pub. L. 98-369 Pub. L. 98–369 amended subsec. (b) generally, substituting provisions dealing with failure to inform taxpayer of certain recordkeeping requirements of section 274(d) of this title or to sign returns, for provisions dealing with failure to sign returns. See 1985 Amendment note above.
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          (c) Failure to furnish identifying number Any person who is a tax return preparer with respect to any return or claim for refund and who fails to comply with section 6109(a)(4) with respect to such return or claim shall pay a penalty of $50 for such failure, unless it is shown that such failure is due to reasonable cause and not due to willful neglect. The maximum penalty imposed under this subsection on any person with respect to documents filed during any calendar year shall not exceed $25,000.

          Amended 1989, 2007
          • 2007 Pub. L. 110-28 Pub. L. 110–28, § 8246(a)(2)(G)(i)(II), substituted “a tax return preparer” for “an income tax return preparer”.
          • 1989 Pub. L. 101-239 Pub. L. 101–239, § 7733(a)–(c), substituted “$50” for “$25” and inserted at end “The maximum penalty imposed under this subsection on any person with respect to documents filed during any calendar year shall not exceed $25,000.”
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            (d) Failure to retain copy or list Any person who is a tax return preparer with respect to any return or claim for refund who fails to comply with section 6107(b) with respect to such return or claim shall pay a penalty of $50 for each such failure, unless it is shown that such failure is due to reasonable cause and not due to willful neglect. The maximum penalty imposed under this subsection on any person with respect to any return period shall not exceed $25,000.

            Amended 2007
            • 2007 Pub. L. 110-28 Pub. L. 110–28, § 8246(a)(2)(G)(i)(II), substituted “a tax return preparer” for “an income tax return preparer”.
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              (e) Failure to file correct information returns Any person required to make a return under section 6060 who fails to comply with the requirements of such section shall pay a penalty of $50 for—

              Amended 1989
              • 1989 Pub. L. 101-239 Pub. L. 101–239, § 7733(d), substituted “returns” for “return” in heading and amended text generally. Prior to amendment, text read as follows: “Any person required to make a return under section 6060 who fails to comply with the requirements of such section shall pay a penalty of—

                “(1) $100 for each failure to file a return as required under such section, and

                “(2) $5 for each failure to set forth an item in the return as required under such section,

                unless it is shown that such failure is due to reasonable cause and not due to willful neglect. The maximum penalty imposed under this subsection on any person with respect to any return period shall not exceed $20,000.”

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                (1) each failure to file a return as required under such section, and

                (2) each failure to set forth an item in the return as required under section,

                unless it is shown that such failure is due to reasonable cause and not due to willful neglect. The maximum penalty imposed under this subsection on any person with respect to any return period shall not exceed $25,000.

                (f) Negotiation of check Any person who is a tax return preparer who endorses or otherwise negotiates (directly or through an agent) any check made in respect of the taxes imposed by this title which is issued to a taxpayer (other than the tax return preparer) shall pay a penalty of $500 with respect to each such check. The preceding sentence shall not apply with respect to the deposit by a bank (within the meaning of section 581) of the full amount of the check in the taxpayer’s account in such bank for the benefit of the taxpayer.

                Amended 1978, 2007
                • 2007 Pub. L. 110-28 Pub. L. 110–28, § 8246(a)(2)(G)(i)(II), (ii), substituted “a tax return preparer” for “an income tax return preparer”, “this title” for “subtitle A”, and “the tax return preparer” for “the income tax return preparer”.
                • 1978 Pub. L. 95-600 Pub. L. 95–600 inserted provision relating to deposits by a bank.

                Cases: United States v. ITS Financial, LLC, 592 F. App'x 387 (6th Cir. 2014); United States v. Elsass, 978 F. Supp. 2d 901 (S.D. Ohio 2013)

                Cited by 17

                  (g) Failure to be diligent in determining eligibility for certain tax benefits Any person who is a tax return preparer with respect to any return or claim for refund who fails to comply with due diligence requirements imposed by the Secretary by regulations with respect to determining—

                  Amended 1997, 2007, 2011, 2015, 2017
                  • 2017 Pub. L. 115-97 Pub. L. 115–97, § 11001(b), amended subsec. (g) generally. Prior to amendment, text read as follows: “Any person who is a tax return preparer with respect to any return or claim for refund who fails to comply with due diligence requirements imposed by the Secretary by regulations with respect to determining eligibility for, or the amount of, the credit allowable by section 24, 25A(a)(1), or 32 shall pay a penalty of $500 for each such failure.”
                  • 2015 Pub. L. 114-113 Pub. L. 114–113 inserted “child tax credit; American Opportunity Tax Credit; and” before “earned income credit” in heading and substituted “section 24, 25A(a)(1), or 32” for “section 32” in text.
                  • 2011 Pub. L. 112-41 Pub. L. 112–41 substituted “$500” for “$100”.
                  • 2007 Pub. L. 110-28 Pub. L. 110–28, § 8246(a)(2)(G)(i)(II), substituted “a tax return preparer” for “an income tax return preparer”.
                  • 1997 Pub. L. 105-34 Pub. L. 105–34 added subsec. (g).
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                    (1) eligibility to file as a head of household (as defined in section 2(b)) on the return, or

                    (2) eligibility for, or the amount of, the credit allowable by section 24, 25A(a)(1), or 32,

                    shall pay a penalty of $500 for each such failure.

                    (h) Adjustment for inflation

                    Amended 2014
                    Cited by 1

                      (1) In general In the case of any failure relating to a return or claim for refund filed in a calendar year beginning after 2014, each of the dollar amounts under subsections (a), (b), (c), (d), (e), (f), and (g) shall be increased by an amount equal to such dollar amount multiplied by the cost-of-living adjustment determined under section 1(f)(3) for the calendar year determined by substituting “calendar year 2013” for “calendar year 2016” in subparagraph (A)(ii) thereof.

                      Amended 2017, 2018
                      • 2018 Pub. L. 115-141 Pub. L. 115–141, § 401(a)(299)(C), inserted “an amount equal to” after “increased by” and “for the calendar year” after “section 1(f)(3)”.
                      • 2017 Pub. L. 115-97 Pub. L. 115–97, § 11002(d)(1)(MM), substituted “for ‘calendar year 2016’ in subparagraph (A)(ii)” for “for ‘calendar year 1992’ in subparagraph (B)”.
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                        (2) Rounding If any amount adjusted under paragraph (1)—

                        Amended 2018
                        • 2018 Pub. L. 115-141 Pub. L. 115–141, § 401(a)(309), substituted “paragraph (1)” for “subparagraph (A)” in introductory provisions.

                        (A) is not less than $5,000 and is not a multiple of $500, such amount shall be rounded to the next lowest multiple of $500, and

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                          (B) is not described in subparagraph (A) and is not a multiple of $5, such amount shall be rounded to the next lowest multiple of $5.

                          Amended 2018
                          • 2018 Pub. L. 115-141 Pub. L. 115–141, § 401(a)(310), substituted “subparagraph (A)” for “clause (i)”.