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Title 26 — Internal Revenue CodeRelease 119-73

§6673 Sanctions and costs awarded by courts

Title 26 › Subtitle Subtitle F— - Procedure and Administration › Chapter CHAPTER 68— - ADDITIONS TO THE TAX, ADDITIONAL AMOUNTS, AND ASSESSABLE PENALTIES › Subchapter Subchapter B— - Assessable Penalties › Part PART I— - GENERAL PROVISIONS › § 6673

Last updated Apr 6, 2026|Official source

Summary

The Tax Court can make a taxpayer pay extra costs when the court finds the case was started or kept going mainly to cause delay, the taxpayer’s claim is frivolous or baseless, or the taxpayer unreasonably failed to use available administrative steps. The court can also order a lawyer who needlessly prolonged or harassed the case to pay the extra costs, expenses, and lawyer fees caused by that behavior. If that lawyer represents the IRS Commissioner, the court may order the United States to pay those costs in the same way a district court would. If a taxpayer’s claim under section 7433 is frivolous, a court may make the taxpayer pay up to $10,000 to the United States. Money awards to the United States in other tax cases can be treated by the Secretary as a tax and collected like a tax. Appellate or Supreme Court orders giving money to the United States can be filed in a district court and enforced as a district court judgment, and the Secretary may collect them like a tax.

Full Legal Text

Title 26, §6673

Internal Revenue Code — Source: USLM XML via OLRC

(a)(1)Whenever it appears to the Tax Court that—
(A)proceedings before it have been instituted or maintained by the taxpayer primarily for delay,
(B)the taxpayer’s position in such proceeding is frivolous or groundless, or
(C)the taxpayer unreasonably failed to pursue available administrative remedies,
(2)Whenever it appears to the Tax Court that any attorney or other person admitted to practice before the Tax Court has multiplied the proceedings in any case unreasonably and vexatiously, the Tax Court may require—
(A)that such attorney or other person pay personally the excess costs, expenses, and attorneys’ fees reasonably incurred because of such conduct, or
(B)if such attorney is appearing on behalf of the Commissioner of Internal Revenue, that the United States pay such excess costs, expenses, and attorneys’ fees in the same manner as such an award by a district court.
(b)(1)Whenever it appears to the court that the taxpayer’s position in the proceedings before the court instituted or maintained by such taxpayer under section 7433 is frivolous or groundless, the court may require the taxpayer to pay to the United States a penalty not in excess of $10,000.
(2)In any civil proceeding before any court (other than the Tax Court) which is brought by or against the United States in connection with the determination, collection, or refund of any tax, interest, or penalty under this title, any monetary sanctions, penalties, or costs awarded by the court to the United States may be assessed by the Secretary and, upon notice and demand, may be collected in the same manner as a tax.
(3)In connection with any appeal from a proceeding in the Tax Court or a civil proceeding described in paragraph (2), an order of a United States Court of Appeals or the Supreme Court awarding monetary sanctions, penalties or court costs to the United States may be registered in a district court upon filing a certified copy of such order and shall be enforceable as other district court judgments. Any such sanctions, penalties, or costs may be assessed by the Secretary and, upon notice and demand, may be collected in the same manner as a tax.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

1989—Pub. L. 101–239 substituted “Sanctions and costs awarded by courts” for “Damages assessable for instituting proceedings before the Court primarily for delay, etc.” in section catchline and amended text generally, making changes in substance and structure of subsecs. (a) and (b). 1988—Pub. L. 100–647 struck out “Tax” after “before the” in section catchline, designated existing provisions as subsec. (a), and added subsec. (b). 1986—Pub. L. 99–514 substituted “, that the taxpayer’s position in such proceeding is frivolous or groundless, or that the taxpayer unreasonably failed to pursue available administrative remedies” for “or that the taxpayer’s position in such proceedings is frivolous or groundless”. 1982—Pub. L. 97–248, § 292(d)(2)(A), substituted “primarily for delay, etc.” for “merely for delay” after “Tax Court” in section catchline. Subsec. (a). Pub. L. 97–248, § 292(b), substituted “or maintained by the taxpayer primarily for delay or that the taxpayer’s position in such proceedings is frivolous or groundless, damages in an amount not in excess of $5,000” for “by the taxpayer merely for delay, damages in an amount not in excess of $500” in first sentence. 1976—Pub. L. 94–455 struck out “or his delegate” after “Secretary”.

Statutory Notes and Related Subsidiaries

Effective Date

of 1989 Amendment Pub. L. 101–239, title VII, § 7731(d), Dec. 19, 1989, 103 Stat. 2402, provided that: “The

Amendments

made by this section [amending this section and section 7482 of this title] shall apply to positions taken after December 31, 1989, in proceedings which are pending on, or commenced after such date.”

Effective Date

of 1988 Amendment Pub. L. 100–647, title VI, § 6241(d), Nov. 10, 1988, 102 Stat. 3749, provided that: “The

Amendments

made by this section [enacting section 7433 of this title and amending this section] shall apply to actions by officers or employees of the Internal Revenue Service after the date of the enactment of this Act [Nov. 10, 1988].”

Effective Date

of 1986 Amendment Pub. L. 99–514, title XV, § 1552(b), Oct. 22, 1986, 100 Stat. 2753, provided that: “The amendment made by subsection (a) [amending this section] shall apply to proceedings commenced after the date of the enactment of this Act [Oct. 22, 1986].”

Effective Date

of 1982 AmendmentAmendment by Pub. L. 97–248 applicable to any action or proceeding in the Tax Court commenced after Dec. 31, 1982, or pending in the Tax Court on the day 120 days after July 18, 1984, see section 292(e)(2) of Pub. L. 97–248, as amended, set out as an

Effective Date

note under section 7430 of this title.

Reference

Citations & Metadata

Citation

26 U.S.C. § 6673

Title 26 — Internal Revenue Code

Last Updated

Apr 6, 2026

Release point: 119-73