[Code of Federal Regulations]
[Title 26, Volume 18]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR301.6653-1]

[Page 417-418]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 301_PROCEDURE AND ADMINISTRATION--Table of Contents
 
   Additions to the Tax, Additional Amounts, and Assessable Penalties
 
Sec. 301.6653-1  Failure to pay tax.

    (a) Negligence or intentional disregard of rules and regulations 
with respect to income or gift taxes. If any part of any underpayment, 
as defined in section 6653(c)(1) and paragraph (c)(1) of this section, 
of any income tax imposed by subtitle A of the Code, or gift tax imposed 
by chapter 12, subtitle B, of the Code, is due to negligence or 
intentional disregard of rules and regulations, but without intent to 
defraud, there shall be added to the tax an amount equal to 5 percent of 
the underpayment.
    (b) Fraud. (1) If any part of any underpayment of tax, as defined in 
section 6653(c) and paragraph (c) of this section, required to be shown 
on a return is due to fraud, there shall be added to the tax an amount 
equal to 50 percent of the underpayment.
    (2) If a 50 percent addition to the tax for fraud is assessed under 
section 6653(b) with respect to an underpayment--
    (i) The addition to the tax under section 6651, relating to failure 
to file a tax return, will not be assessed with respect to the same 
underpayment, and
    (ii) In the case of the income taxes imposed by subtitle A and the 
gift tax imposed by chapter 12 of subtitle B, the 5 percent addition to 
the tax under section 6653(a), relating to negligence and intentional 
disregard of rules and regulations, will not be assessed with respect to 
the same underpayment.
    (c) Definition of underpayment--(1) Income, estate, gift, and 
chapter 41, 42, 43, and 44 taxes. In the case of income, estate, gift, 
and chapter 41, 42, 43, and 44 taxes, an underpayment for purposes of 
section 6653 and this section is--

[[Page 418]]

    (i) The total amount of all deficiencies as defined in section 6211, 
if a return was filed on or before the last date (determined with regard 
to any extension of time) prescribed for filing such return, or
    (ii) The amount of the tax imposed by subtitle A or B, or chapter 
41, 42, 43, or 44, as the case may be, if a return was not filed on or 
before the last date (determined with regard to any extension of time) 
prescribed for filing such return.

However, for purposes of paragraph (c)(1)(i) of this section, any amount 
of additional tax shown on the amended return, so called, filed after 
the due date of the return is a deficiency.
    (2) Other taxes. In the case of any tax other than an income, 
estate, gift or chapter 41, 42, 43, or 44 tax, an underpayment for 
purposes of section 6653 and this section is the amount by which the tax 
imposed exceeds--
    (i) In the case of any tax with respect to which the taxpayer is 
required to file a return, the sum of (a) the amount shown as tax by the 
taxpayer upon his return filed in respect of such tax, but only if the 
return is filed on or before the last date (determined with regard to 
any extension of time) prescribed for filing such return, plus (b) any 
amount not shown on a return filed by the taxpayer which is paid in 
respect of such tax prior to the date prescribed for filing the return. 
The ``amount shown as tax by the taxpayer upon his return'' for the 
purposes of this subparagraph shall be determined without regard to any 
credit for an overpayment for any prior tax return period, and without 
regard to any adjustment made under section 6205(a), or section 6413(a), 
relating to special rules applicable to certain employment taxes.
    (ii) In the case of any tax payable by stamp, the amount paid (on or 
before the date prescribed for payment) in respect of such tax.

The amounts specified in subdivisions (i) and (ii) of this subparagraph 
shall be reduced, for purposes of determining the amount of the 
underpayment, by the amount of any rebates made. For purposes of this 
subparagraph, the term ``rebates'' means so much of an abatement, 
credit, refund, or other repayment as was made on the ground that the 
tax imposed was less than the excess of the amount specified in 
subdivision (i) or (ii) of this subparagraph, whichever is applicable, 
over any rebates previously made.
    (d) No delinquency penalty if fraud assessed. See paragraph (b)(2) 
of this section.
    (e) Failure to pay stamp tax. Any person (as defined in section 
6671(b)) who willfully fails to pay any tax payable by stamp, coupons, 
tickets, books or other devices or methods prescribed by the Code or 
regulations promulgated thereunder, or willfully attempts in any manner 
to evade or defeat any such tax or the payment thereof, shall, in 
addition to other penalties provided by law, be liable to a penalty of 
50 percent of the total amount of the underpayment of the tax.
    (f) Joint returns. No person filing a joint return shall be held 
liable for a fraud penalty except for his own personal fraudulent 
conduct. Thus, for the fraud penalty to apply to a taxpayer who files a 
joint return some part of the underpayment in such return must be due to 
the fraud of such taxpayer. A taxpayer shall not be subject to the fraud 
penalty solely by reason of the fraud of a spouse and his filing of a 
joint return with such spouse.

[32 FR 15241, Nov. 3, 1967, as amended by T.D. 7320, 39 FR 28279, Aug. 
6, 1974; 39 FR 29353, Aug. 15, 1974; T.D. 7838, 47 FR 44252, Oct. 7, 
1982]