Title 26 — Internal Revenue CodeRelease 119-73
§6676 Erroneous claim for refund or credit
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 › § 6676
Summary
You must pay a penalty equal to 20 percent of any tax refund or credit you claimed that is larger than allowed, unless you can show you had reasonable cause for the mistake. "Excessive amount" means the part of your claim that is more than the law allows for that tax year. If the extra amount comes from transactions listed in section 6662(b)(6), you cannot claim reasonable cause. This rule also does not apply to any part of the extra amount already covered by a penalty under part II of subchapter A of chapter 68.
Full Legal Text
Title 26, §6676
Internal Revenue Code — Source: USLM XML via OLRC
(a)If a claim for refund or credit with respect to income or employment tax is made for an excessive amount, unless it is shown that the claim for such excessive amount is due to reasonable cause, the person making such claim shall be liable for a penalty in an amount equal to 20 percent of the excessive amount.
(b)For purposes of this section, the term “excessive amount” means in the case of any person the amount by which the amount of the claim for refund or credit for any taxable year exceeds the amount of such claim allowable under this title for such taxable year.
(c)For purposes of this section, any excessive amount which is attributable to any transaction described in section 6662(b)(6) shall not be treated as due to reasonable cause.
(d)This section shall not apply to any portion of the excessive amount of a claim for refund or credit which is subject to a penalty imposed under part II of subchapter A of chapter 68.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Codification section 1409(d) of Pub. L. 111–152, which directed the amendment of section 6676 without specifying the act to be amended, was executed to this section, which is section 6676 of the Internal Revenue Code of 1986, to reflect the probable intent of Congress. See 2010 Amendment note below.
Prior Provisions
A prior section 6676, added Pub. L. 87–397, § 1(b), Oct. 5, 1961, 75 Stat. 828; amended Pub. L. 91–172, title I, § 101(j)(52), Dec. 30, 1969, 83 Stat. 531; Pub. L. 93–406, title II, § 1016(a)(20), Sept. 2, 1974, 88 Stat. 931; Pub. L. 97–248, title III, § 316(a), Sept. 3, 1982, 96 Stat. 607; Pub. L. 98–67, title I, § 105(a), Aug. 5, 1983, 97 Stat. 380; Pub. L. 98–369, div. A, title IV, § 422(c), July 18, 1984, 98 Stat. 798; Pub. L. 99–514, title XV, §§ 1501(b), 1523(b)(3), 1524(b), Oct. 22, 1986, 100 Stat. 2736, 2748, 2749; Pub. L. 100–647, title I, § 1015(g), Nov. 10, 1988, 102 Stat. 3570, related to failure to supply identifying numbers, prior to repeal by Pub. L. 101–239, title VII, § 7711(b)(1), (c), Dec. 19, 1989, 103 Stat. 2393, applicable to returns and statements the due date for which (determined without regard to extensions) is after Dec. 31, 1989.
Amendments
2025—Subsec. (a). Pub. L. 119–21 substituted “income or employment tax” for “income tax”. 2018—Subsec. (c). Pub. L. 115–141 substituted “reasonable cause” for “reasonable basis” in heading. 2015—Subsec. (a). Pub. L. 114–113, § 209(c)(1), substituted “is due to reasonable cause” for “has a reasonable basis”. Pub. L. 114–113, § 209(b), struck out “(other than a claim for a refund or credit relating to the earned income credit under section 32)” after “income tax”. Subsec. (c). Pub. L. 114–113, § 209(c)(2), substituted “due to reasonable cause” for “having a reasonable basis”. 2010—Subsecs. (c), (d). Pub. L. 111–152 added subsec. (c) and redesignated former subsec. (c) as (d). See Codification note above.
Statutory Notes and Related Subsidiaries
Effective Date
of 2025 AmendmentAmendment by Pub. L. 119–21 applicable to claims for credit or refund after July 4, 2025, see section 70605(g)(4) of Pub. L. 119–21, set out as an
Enforcement
Provisions With Respect to COVID-Related Employee Retention Credits note under section 3134 of this title.
Effective Date
of 2015 Amendment Pub. L. 114–113, div. Q, title II, § 209(d)(2), Dec. 18, 2015, 129 Stat. 3085, as amended by Pub. L. 115–141, div. U, title I, § 101(k), Mar. 23, 2018, 132 Stat. 1162, provided that: “The
Amendments
made by subsections (b) and (c) [amending this section] shall apply to claims filed after the date of the enactment of this Act [Dec. 18, 2015].”
Effective Date
of 2010 AmendmentAmendment by Pub. L. 111–152 applicable to refunds and credits attributable to transactions entered into after Mar. 30, 2010, see section 1409(e)(4) of Pub. L. 111–152, set out as a note under section 6662 of this title.
Effective Date
Pub. L. 110–28, title VIII, § 8247(c), May 25, 2007, 121 Stat. 204, provided that: “The
Amendments
made by this section [enacting this section] shall apply to any claim filed or submitted after the date of the enactment of this Act [May 25, 2007].”
Reference
Citations & Metadata
Citation
26 U.S.C. § 6676
Title 26 — Internal Revenue Code
Last Updated
Apr 6, 2026
Release point: 119-73