View all text of Part I [§ 6671 - § 6720C]
§ 6701. Penalties for aiding and abetting understatement of tax liability
(a) Imposition of penalty
Any person—
(1) who aids or assists in, procures, or advises with respect to, the preparation or presentation of any portion of a return, affidavit, claim, or other document,
(2) who knows (or has reason to believe) that such portion will be used in connection with any material matter arising under the internal revenue laws, and
(3) who knows that such portion (if so used) would result in an understatement of the liability for tax of another person,
shall pay a penalty with respect to each such document in the amount determined under subsection (b).
(b) Amount of penalty
(1) In general
(2) Corporations
(3) Only 1 penalty per person per period
(c) Activities of subordinates
(1) In general
For purposes of subsection (a), the term “procures” includes—
(A) ordering (or otherwise causing) a subordinate to do an act, and
(B) knowing of, and not attempting to prevent, participation by a subordinate in an act.
(2) Subordinate
(d) Taxpayer not required to have knowledge
(e) Certain actions not treated as aid or assistance
(f) Penalty in addition to other penalties
(1) In general
(2) Coordination with return preparer penalties
(3) Coordination with section 6700
(Added Pub. L. 97–248, title III, § 324(a), Sept. 3, 1982, 96 Stat. 615; amended Pub. L. 101–239, title VII, § 7735(a), (b), Dec. 19, 1989, 103 Stat. 2403.)