Title 26 — Internal Revenue CodeRelease 119-73
§6695 Other assessable penalties with respect to the preparation of tax returns for other persons
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 › § 6695
Summary
Tax preparers must pay money penalties if they break certain rules when they prepare returns or refund claims for other people. A $50 penalty applies for failures to follow rules about filing or giving required information, and for failures to follow signing and identifying rules. Those $50 penalties have a $25,000 cap for the year for the rules listed in parts (a), (b), and (c). A $50 penalty also applies for failures under another filing rule in part (d), with a $25,000 cap for each return period. If a preparer who should file a return under section 6060 fails to file or to list a required item, there is a $50 penalty for each failure. A preparer who endorses or cashes a taxpayer’s tax check pays $500 for each check, unless a bank deposits the full check into the taxpayer’s account. Penalties also apply if a preparer fails the required due diligence checks for claiming head-of-household status or certain credits. The dollar amounts above are increased for returns filed after 2014 for inflation using the cost-of-living rule in section 1(f)(3) with “calendar year 2013” substituted for “calendar year 2016.” After adjustment, if an amount is at least $5,000 and not a multiple of $500 it is rounded down to the next lower multiple of $500. Otherwise, if not covered by that rule and not a multiple of $5, it is rounded down to the next lower multiple of $5.
Full Legal Text
Title 26, §6695
Internal Revenue Code — Source: USLM XML via OLRC
(a)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.
(b)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.
(c)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.
(d)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.
(e)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—
(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,
(f)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.
(g)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—
(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,
(h)(1)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.
(2)If any amount adjusted under paragraph (1)—
(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
(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.
Legislative History
Notes & Related Subsidiaries
Inflation Adjusted Items for Certain YearsFor inflation adjustment of certain items in this section, see Revenue Procedures listed in a table under section 1 of this title.
Editorial Notes
Amendments
2018—Subsec. (h)(1). 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)”. Subsec. (h)(2). Pub. L. 115–141, § 401(a)(309), substituted “paragraph (1)” for “subparagraph (A)” in introductory provisions. Subsec. (h)(2)(B). Pub. L. 115–141, § 401(a)(310), substituted “subparagraph (A)” for “clause (i)”. 2017—Subsec. (g). 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.” Subsec. (h)(1). 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)”. 2015—Subsec. (g). 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. 2014—Subsec. (h). Pub. L. 113–295 added subsec. (h). 2011—Subsec. (g). Pub. L. 112–41 substituted “$500” for “$100”. 2007—Pub. L. 110–28, § 8246(a)(2)(G)(i)(I), struck out “income” before “tax” in section catchline. Subsecs. (a) to (d). Pub. L. 110–28, § 8246(a)(2)(G)(i)(II), substituted “a tax return preparer” for “an income tax return preparer”. Subsec. (f). 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”. Subsec. (g). Pub. L. 110–28, § 8246(a)(2)(G)(i)(II), substituted “a tax return preparer” for “an income tax return preparer”. 1997—Subsec. (g). Pub. L. 105–34 added subsec. (g). 1989—Subsecs. (a) to (c). 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.” Subsec. (e). 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.” 1985—Subsec. (b). 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—Subsec. (b). 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. 1978—Subsec. (f). Pub. L. 95–600 inserted provision relating to deposits by a bank.
Statutory Notes and Related Subsidiaries
Effective Date
of 2017 AmendmentAmendment by section 11001(b) of Pub. L. 115–97 applicable to taxable years beginning after Dec. 31, 2017, see section 11001(c) of Pub. L. 115–97, set out as a note under section 1 of this title. Amendment by section 11002(d)(1)(MM) of Pub. L. 115–97 applicable to taxable years beginning after Dec. 31, 2017, see section 11002(e) of Pub. L. 115–97, set out as a note under section 1 of this title.
Effective Date
of 2015 Amendment Pub. L. 114–113, div. Q, title II, § 207(c), Dec. 18, 2015, 129 Stat. 3083, provided that: “The amendment made by this section [amending this section] shall apply to taxable years beginning after December 31, 2015.”
Effective Date
of 2014 AmendmentAmendment by Pub. L. 113–295 applicable to returns or claims for refund filed after Dec. 31, 2014, see section 208(h) of Pub. L. 113–295, set out as a note under section 6651 of this title.
Effective Date
of 2011 AmendmentAmendment by Pub. L. 112–41 applicable to returns required to be filed after Dec. 31, 2011, see section 501(b) of Pub. L. 112–41, set out in a note under section 3805 of Title 19, Customs Duties.
Effective Date
of 2007 AmendmentAmendment by Pub. L. 110–28 applicable to returns prepared after May 25, 2007, see section 8246(c) of Pub. L. 110–28, set out as a note under section 6060 of this title.
Effective Date
of 1997 AmendmentAmendment by Pub. L. 105–34 applicable to taxable years beginning after Dec. 31, 1996, see section 1085(e)(1) of Pub. L. 105–34, set out as a note under section 32 of this title.
Effective Date
of 1989 Amendment Pub. L. 101–239, title VII, § 7733(e), Dec. 19, 1989, 103 Stat. 2403, provided that: “The
Amendments
made by this section [amending this section] shall apply to documents prepared after December 31, 1989.”
Effective Date
of 1985 AmendmentAmendment by Pub. L. 99–44 effective as if included in the
Amendments
made by section 179(b) of Pub. L. 98–369, see section 6(a) of Pub. L. 99–44, set out as a note under section 274 of this title.
Effective Date
of 1984 AmendmentAmendment by Pub. L. 98–369 applicable to taxable years beginning after Dec. 31, 1984, see section 179(d)(2) of Pub. L. 98–369, set out as an
Effective Date
note under section 280F of this title.
Effective Date
of 1978 Amendment Pub. L. 95–600, title VII, § 701(cc)(3), Nov. 6, 1978, 92 Stat. 2924, provided that: “The
Amendments
made by this subsection [amending this section and section 7701 of this title] shall apply to documents prepared after December 31, 1976.” Repeal of
Regulations
Covering Substantiation by Adequate Contemporaneous Records
Regulations
issued before May 24, 1985, to carry out the amendment of subsec. (b) of this section by section 179(b)(2) of Pub. L. 98–369 to have no force and effect, see section 1(c) of Pub. L. 99–44, set out as a note under section 274 of this title.
Reference
Citations & Metadata
Citation
26 U.S.C. § 6695
Title 26 — Internal Revenue Code
Last Updated
Apr 6, 2026
Release point: 119-73