Title 26 — Internal Revenue CodeRelease 119-73not60
§6663 Imposition of Fraud Penalty
Title 26 › Subtitle 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 II— ACCURACY-RELATED AND FRAUD PENALTIES › § 6663
Summary
A 75% penalty is added to any tax underpayment that is caused by fraud. If the IRS proves any fraud, the whole underpayment is treated as fraud unless the taxpayer shows it is more likely than not that some part is not. On joint returns, a spouse is liable only for fraud they caused.
Full Legal Text
Title 26, §6663
Internal Revenue Code — Source: USLM XML via OLRC
(a)If any part of any underpayment of tax required to be shown on a return is due to fraud, there shall be added to the tax an amount equal to 75 percent of the portion of the underpayment which is attributable to fraud.
(b)If the Secretary establishes that any portion of an underpayment is attributable to fraud, the entire underpayment shall be treated as attributable to fraud, except with respect to any portion of the underpayment which the taxpayer establishes (by a preponderance of the evidence) is not attributable to fraud.
(c)In the case of a joint return, this section shall not apply with respect to a spouse unless some part of the underpayment is due to the fraud of such spouse.
Legislative History
Notes & Related Subsidiaries
Statutory Notes and Related Subsidiaries
Effective Date
Section applicable to returns the due date for which (determined without regard to extensions) is after Dec. 31, 1989, see section 7721(d) of Pub. L. 101–239, set out as an
Effective Date
of 1989 Amendment note under section 461 of this title.
Reference
Citations & Metadata
Citation
26 U.S.C. § 6663
Title 26 — Internal Revenue Code
Last Updated
Apr 5, 2026
Release point: 119-73not60