[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: 26CFR301.6684-1]

[Page 422]
 
                       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. 301.6684-1  Assessable penalties with respect to liability for tax 
under chapter 42.

    (a) In general. If any person (as defined in section 7701(a)(1)) 
becomes liable for tax under any section of chapter 42 (other than 
section 4940 or 4948(a)), relating to private foundations, by reason of 
any act or failure to act which is not due to reasonable cause and 
either--
    (1) Such person has theretofore (at any time) been liable for tax 
under any section of such chapter (other than section 4940 or 4948(a)), 
or
    (2) Such act or failure to act is both willful and flagrant,

then such person shall be liable for a penalty equal to the amount of 
such tax.
    (b) Showing of reasonable cause. The penalty imposed by section 6684 
shall not apply to any person with respect to a violation of any section 
of chapter 42 if it is established to the satisfaction of the district 
director or director of the internal revenue service center that such 
violation was due to reasonable cause. An affirmative showing of 
reasonable cause must be made in the form of a written statement, 
containing a declaration by such person that it is made under the 
penalties of perjury, setting forth all the facts alleged as reasonable 
cause.
    (c) Willful and flagrant. For purposes of this section, the term 
``willful and flagrant'' has the same meaning as such term possesses in 
section 507(a)(2)(A) and the regulations thereunder.
    (d) Effective date. This section shall take effect on January 1, 
1970.

[T.D. 7127, 36 FR 11504, June 15, 1971]