Erroneous claim for refund or credit

FederalStatutes

Ask Donna

How this section applies to your facts.

Title 26—INTERNAL REVENUE CODE > Subtitle F—Procedure and Administration > CHAPTER 68—ADDITIONS TO THE TAX, ADDITIONAL AMOUNTS, AND ASSESSABLE PENALTIES > Subchapter B—Assessable Penalties > PART I—GENERAL PROVISIONS

This text was captured on Sep 16, 2026. It is a snapshot, not a live feed, so check the official code before relying on it.

Text

If a claim for refund or credit with respect to income or employment tax is made for an excessive amount, unless it is shown that the claim for such excessive amount is due to reasonable cause, the person making such claim shall be liable for a penalty in an amount equal to 20 percent of the excessive amount.

(Added Pub. L. 110–28, title VIII, § 8247(a) , May 25, 2007 , 121 Stat. 204 ; amended Pub. L. 111–152, title I, § 1409(d) , Mar. 30, 2010 , 124 Stat. 1070 ; Pub. L. 114–113, div. Q, title II, § 209(b) , (c), Dec. 18, 2015 , 129 Stat. 3084 , 3085; Pub. L. 115–141, div. U, title IV, § 401(a)(305) , Mar. 23, 2018 , 132 Stat. 1199 ; Pub. L. 119–21, title VII, § 70605(f) , July 4, 2025 , 139 Stat. 288 .)

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.