PUBLIC LAW 97-248—SEPT. 3, 1982
96 STAT. 617
"(3) N o NEGLIGENCE ADDITION WHEN THERE IS ADDITION FOR FRAUD.—The addition to tax under this subsection shall be in lieu of any a m o u n t determined under subsection (a). "(4) SPECIAL RULE FOR JOINT R E T U R N S. — I n the case of a joint
r e t u r n under section 6013, this subsection shall not apply with respect to the tax of the spouse unless some part of the underp a y m e n t is due to the fraud of such spouse." (b) EFFECTIVE D A T E. — The amendment m a d e by subsection (a) 26 USC 6653 shall apply with respect to taxes the last day prescribed by law for "° ^' payment of which (determined without regard to any extension) is after the date of e n a c t m e n t of this Act. SEC. 326. PENALTY FOR FRIVOLOUS RETURNS. (a) GENERAL
RULE.—Subchapter
B of chapter
68 ( r e l a t i n g
to
assessable penalties) is amended by inserting after section 6701 the following new section: "SEC. 6702. FRIVOLOUS INCOME TAX RETURN.
26 USC 6702.
"(a) C IV I L PENALTY.—If—
"(1) any individual files w h a t p u r p o r t s to be a r e t u r n of the tax imposed by subtitle A b u t which— "(A) does not contain information on which the substantial correctness of the self-assessment may be judged, or "(B) contains information that on its face indicates that the self-assessment is substantially incorrect; and "(2) the conduct referred to in paragraph (1) is d u e to— "(A) a position which is frivolous, or "(B) a desire (which a p p e a r s on the purported r e t u r n) to delay or impede the administration of Federal income tax laws, the n such individual shall pay a penalty of $500. "(b) PENALTY
IN ADDITION TO OTHER P E N A L T I E S. — The
penalty
imposed by subsection (a) shall be in addition to any other penalty provided by law." (b) CLERICAL AMENDMENT. — The t a b l e of sections for subchapter B
of chapter 68 is amended by inserting after the item relating to section 6701 the following new item: "Sec. ()702. Frivolous income tax return."
(c) EFFECTIVE D A T E. — The amendments m a d e by this section shall apply with respect to documents filed after the date of the enactm e n t of this Act.
26 USC 6702 "°*'^"
(d) CROSS R E F E R E N C E. — For provisions relating to burden of proof and prepayment forum,.see section 67().'J of the Internal Revenue Code of 19.^4, as added by section 33.3 of this Act. SEC. 327. R E L I E F FROM CRIMINAL PENALTY FOR F A I L U R E TO F I L E ESTI.MATED TAX W H E R E T A X P A Y E R F A L L S WITHIN STATUTORY EXCEPTIONS.
Section 7203 (relating to willful failure to file r e t u r n, supply information, or pay tax) is amended by adding a t the end thereof the following new sentence: "In the case of any person with respect to whom the r e is a failure to pay any estimated tax, this section shall not apply to such person with respect to such failure if the r e is no addition to tax under section 6654 or 6655 with respect to such failure."
26 USC 7203.
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