26 U.S.C. § 6703
Section 6703 · Rules applicable to penalties under sections 6700, 6701, and 6702
Amended 2 times on record
Applied in 195 court decisions — leading case Coleman v. Commissioner (1986)
Most recently applied in James Tarpey v. United States (August 2023)
Applied most in the Ninth Circuit Circuit (26 decisions)
Cases citing this section usually also cite 26 U.S.C. § 6702 · 26 U.S.C. § 6700 · 26 U.S.C. § 7422
How often courts cite this section
Court decisions citing this, by year.Markers show enactment, consequential amendments, and circuit splits over this section — watch for a citation surge after a change or a disagreement. The dip in the last several years is a data-coverage gap, not a real trend — our corpus holds fewer opinions from the most recent years, so recent citations are undercounted.
In any proceeding involving the issue of whether or not any person is liable for a penalty under section 6700, 6701, or 6702, the burden of proof with respect to such issue shall be on the Secretary.
Subchapter B of chapter 63 (relating to deficiency procedures) shall not apply with respect to the assessment or collection of the penalties provided by sections 6700, 6701, and 6702.
(1) In general
If, within 30 days after the day on which notice and demand of any penalty under section 6700 or 6701 is made against any person, such person pays an amount which is not less than 15 percent of the amount of such penalty and files a claim for refund of the amount so paid, no levy or proceeding in court for the collection of the remainder of such penalty shall be made, begun, or prosecuted until the final resolution of a proceeding begun as provided in paragraph (2). Notwithstanding the provisions of section 7421(a), the beginning of such proceeding or levy during the time such prohibition is in force may be enjoined by a proceeding in the proper court. Nothing in this paragraph shall be construed to prohibit any counterclaim for the remainder of such penalty in a proceeding begun as provided in paragraph (2).
(2) Person must bring suit in district court to determine his liability for penalty
If, within 30 days after the day on which his claim for refund of any partial payment of any penalty under section 6700 or 6701 is denied (or, if earlier, within 30 days after the expiration of 6 months after the day on which he filed the claim for refund), the person fails to begin a proceeding in the appropriate United States district court for the determination of his liability for such penalty, paragraph (1) shall cease to apply with respect to such penalty, effective on the day following the close of the applicable 30-day period referred to in this paragraph.
(3) Suspension of running of period of limitations on collection
The running of the period of limitations provided in section 6502 on the collection by levy or by a proceeding in court in respect of any penalty described in paragraph (1) shall be suspended for the period during which the Secretary is prohibited from collecting by levy or a proceeding in court.
Editorial notes U.S. Code · Office of the Law Revision Counsel
Amendments
1989—Subsec. (c)(1). Pub. L. 101–239, §7737(a), inserted at end “Nothing in this paragraph shall be construed to prohibit any counterclaim for the remainder of such penalty in a proceeding begun as provided in paragraph (2).”
Pub. L. 101–239, §7736(a), substituted “section 6700 or 6701” for “section 6700, 6701, or 6702”.
Subsec. (c)(2). Pub. L. 101–239, §7736(a), substituted “section 6700 or 6701” for “section 6700, 6701, or 6702”.
Effective Date of 1989 Amendment
Section 7736(b) of Pub. L. 101–239 provided that: “The amendment made by subsection (a) [amending this section] shall apply to returns filed after December 31, 1989.”
Effective Date
Section 322(c) of Pub. L. 97–248 provided that: “The amendments made by this section [enacting this section] shall take effect on the day after the date of the enactment of this Act [Sept. 3, 1982].”