Title 26, Internal Revenue CodeRelease 119-102
§6657 Bad Checks
Title 26 › Subtitle F — Procedure and Administration › CHAPTER 68 — ADDITIONS TO THE TAX, ADDITIONAL AMOUNTS, AND ASSESSABLE PENALTIES › Subchapter A — Additions to the Tax and Additional Amounts › PART I — GENERAL PROVISIONS › § 6657
Summary
If a payment you gave under this title isn't paid, you must pay a penalty after the Secretary demands: 2% of the amount, but if under $1,250 the penalty is $25 or the amount, whichever is less; no penalty if in good faith you reasonably believed it would be paid.
Full Legal Text
Title 26, §6657
Internal Revenue Code, Source: USLM XML via OLRC
If any instrument in payment, by any commercially acceptable means, of any amount receivable under this title is not duly paid, in addition to any other penalties provided by law, there shall be paid as a penalty by the person who tendered such instrument, upon notice and demand by the Secretary, in the same manner as tax, an amount equal to 2 percent of the amount of such instrument, except that if the amount of such instrument is less than $1,250, the penalty under this section shall be $25 or the amount of such instrument, whichever is the lesser. This section shall not apply if the person tendered such instrument in good faith and with reasonable cause to believe that it would be duly paid.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Amendments
2010—Pub. L. 111–198, § 3(a)(2), substituted “such instrument” for “such check” wherever appearing. Pub. L. 111–198, § 3(a)(1), substituted “If any instrument in payment, by any commercially acceptable means, of any amount” for “If any check or money order in payment of any amount”. 2007—Pub. L. 110–28 substituted “$1,250” for “$750” and “$25” for “$15”. 1988—Pub. L. 100–647 substituted “2” for “1”, “$750” for “$500”, and “$15” for “$5”. 1976—Pub. L. 94–455 struck out “or his delegate” after “Secretary”.
Statutory Notes and Related Subsidiaries
Effective Date
of 2010 Amendment Pub. L. 111–198, § 3(b), July 2, 2010, 124 Stat. 1356, provided that: “The
Amendments
made by this section [amending this section] shall apply to instruments tendered after the date of the enactment of this Act [July 2, 2010].”
Effective Date
of 2007 Amendment Pub. L. 110–28, title VIII, § 8245(b), May 25, 2007, 121 Stat. 200, provided that: “The
Amendments
made by this section [amending this section] apply to checks or money orders received after the date of the enactment of this Act [May 25, 2007].”
Effective Date
of 1988 Amendment Pub. L. 100–647, title V, § 5071(b), Nov. 10, 1988, 102 Stat. 3681, provided that: “The amendment made by subsection (a) [amending this section] shall apply to checks or money orders received after the date of the enactment of this Act [Nov. 10, 1988].”
Reference
Citations & Metadata
Citation
26 U.S.C. § 6657
Title 26, Internal Revenue Code
Last Updated
Aug 21, 2026
Release point: 119-102