[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: 26CFR301.6659-1]

[Page 419-420]
 
                       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. 301.6659-1  Applicable rules.

    (a) Additions treated as tax. Except as otherwise provided in the 
Code, any reference in the Code to ``tax'' shall be deemed also to be a 
reference to any addition to the tax, additional amount, or penalty 
imposed by chapter 68 of the Code with respect to such tax. Such 
additions to the tax, additional amounts, and penalties shall become 
payable upon notice and demand therefor and shall be assessed, 
collected, and paid in the same manner as taxes.
    (b) Additions to tax for failure to file return or pay tax. Any 
addition under section 6651 or section 6653 to a tax shall be considered 
a part of such tax for the purpose of the assessment and collection of 
such tax. For applicability of deficiency procedures to additions to the 
tax, see paragraph (c) of this section.
    (c) Deficiency procedures--(1) Addition to the tax for failure to 
file tax return. (i) Subchapter B, chapter 63, of the Code (deficiency 
procedures) applies to the additions to the income estate, gift, and 
chapter 41, 42, 43, and 44 taxes imposed by section 6651 for failure to 
file a tax return to the same extent that it applies to such taxes. 
Accordingly, if there is a deficiency (as defined in section 6211) in 
the tax (apart from the addition to the tax) where a return has not been 
timely filed, deficiency procedures apply to the addition to the tax 
under section 6651. If there is no deficiency in the tax where a return 
has not been timely filed, the addition to the tax under section 6651 
may be assessed and collected without deficiency procedures.

[[Page 420]]

    (ii) The provisions of paragraph (c)(1)(i) of this section may be 
illustrated by the following examples:

    Example 1. A filed his income tax return for the calendar year 1955 
on May 15, 1956, not having been granted an extension of time for such 
filing. His failure to file on time was not due to reasonable cause. The 
return showed a liability of $1,000 and it was determined that A is 
liable under section 6651 for an addition to such tax of $50 (5 percent 
a month for 1 month). The provisions of subchapter B of chapter 63 
(deficiency procedures) do not apply to the assessment and collection of 
the addition to the tax since such provisions are not applicable to the 
tax with respect to which such addition was asserted, there being no 
statutory deficiency for purposes of section 6211.
    Example 2. Assume the same facts as in example 1 and assume further 
that a deficiency of $500 in tax and a further $25 addition to the tax 
under section 6651 is asserted against A for the calendar year 1955. 
Thus, the total addition to the tax under section 6651 is $75. Since the 
provisions of subchapter B of chapter 63 are applicable to the $500 
deficiency, they likewise apply to the $25 addition to the tax asserted 
with respect to such deficiency (but not to the $50 addition to the tax 
under example 1).

    (2) Additions to the tax for negligence or fraud. Subchapter B of 
chapter 63 (deficiency procedures) applies to all additions to the 
income, estate, gift, and chapter 41, 42, 43, and 44 taxes imposed by 
section 6653 (a) and (b) for negligence and fraud.
    (3) Additions to tax for failure to pay estimated income taxes--(i) 
Return filed by taxpayer. The addition to the tax for underpayment of 
estimated income tax imposed by section 6654 (relating to failure by 
individuals to pay estimated income tax) or section 6655 (relating to 
failure by corporations to pay estimated income tax) is determined by 
reference to the tax shown on the return if a return is filed. 
Therefore, such addition may be assessed and collected without regard to 
the provisions of subchapter B of chapter 63 (deficiency procedures) if 
a return is filed since such provisions are not applicable to the 
assessment of the tax shown on the return. Further, since the additions 
to the tax imposed by section 6654 or 6655 are determined solely by 
reference to the amount of tax shown on the return if a return is filed, 
the assertion of a deficiency with respect to any tax not shown on such 
return will not make the provisions of subchapter B of chapter 63 
(deficiency procedures) apply to the assessment and collection of any 
additions to the tax under section 6654 or 6655.
    (ii) No return filed by taxpayer. If the taxpayer has not filed a 
return and his entire income tax liability is asserted as a deficiency 
to which the provisions of subchapter B of chapter 63 apply, such 
provisions likewise will apply to any addition to such tax imposed by 
section 6654 or 6655.

[32 FR 15241, Nov. 3, 1967, as amended by T.D. 7838, 47 FR 44252, Oct. 
7, 1982]

                          Assessable Penalties