§6703 — Rules applicable to penalties under sections 6700, 6701, and 6702
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Statute Text — 26 U.S.C. §6703
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.
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).
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.
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.
18 Citing Cases
Just as in Moore, in which we held that we did not have jurisdiction to redetermine Federal trust fund taxes, we hold that we do not, in the instant case, have jurisdiction to redetermine the frivolous return penalties assessed pursuant to section 6702.
* * * - 21 - The section 6700 penalty is governed by the procedural rules ofsection 6703, which, in general, removes section 6700 penalty assessments from the deficiencyjurisdiction ofthis Court.7 However, section 6330(d)(1) provides this Court withjurisdiction to review an appeal from the Commissioner's determination to proceed with collection activity regardless ofthe type of underlying tax involved. And we have held that ourjurisdiction includes reviewing the Commissioner's lien and levy act
* * * - 21 - The section 6700 penalty is governed by the procedural rules ofsection 6703, which, in general, removes section 6700 penalty assessments from the deficiencyjurisdiction ofthis Court.7 However, section 6330(d)(1) provides this Court withjurisdiction to review an appeal from the Commissioner's determination to proceed with collection activity regardless ofthe type of underlying tax involved. And we have held that ourjurisdiction includes reviewing the Commissioner's lien and levy act
Jurisdiction The section 6.700 penalty is governed by the procedural rules of section 6703,2 which generally removes section 6700 penalty assessments from the deficiency jurisdiction of this Court . However, section 6330(d)(1)3 provides this Court with jurisdiction to review an appeal from the Commissioner's determination to proceed with collection activity regardless of the type of underlying tax involved . We have held that our jurisdiction includes the right to review the Commissioner's lien
Jurisdiction The section 6700 penalty is governed by the procedural rules of section 6703,2 which generally removes section 6700 penalty assessments from the deficiency jurisdiction of this Court . However, section 6330(d)(1)3 provides this Court with jurisdiction to review an appeal from the Commissioner's determination to proceed with collection activity regardless of the type of underlying tax involved . We have held that our jurisdiction includes the right to review the Commissioner's lien a
hy v. Commissioner, 125 T.C. 301, 320 (2005), a_ffd, 469 F.3d 27 (1st Cir. 2006); see also Goza v. Commissioner, 114 T.C. 176, 181-182 (2000). II. Section 6700 Penalties A. Burden ofProof Section 6700 penalties are subject to the procedural rules ofsection 6703. Section 6703(a) provides that the Secretary bears the burden ofproving a taxpayer's liability with respect to penalties assessed under section 6700. This Court has not decided the appropriate standard ofproofin determining liability unde
eration, or during any subsequent litigation related to denial ofthose claims. The suspension ofthe levy action does not invalidate the issuance ofthe levy notice. Further, the filing ofthe lien notice by respondent is not similarly restricted under section 6703. On July 30, 2015, petitioner timely filed a petition with this Court. OPINION I. Standard ofReview Sections 6320 and 6330 require the Commissioner to notify a taxpayer ifhe has filed a lien or intends to levy on that taxpayer's property
ccordingly, we are satisfied that respondent has met the verification requirements. B. Section 6701 Penalty In 1982 Congress enacted three new assessable penalties, codified in sections 6700-6702, and rules applicable to those penalties, codified in section 6703. See Tax Equity and Fiscal Responsibility Act of 1982, Pub. L. No. 97-248, secs. 320, 322, 324, 326, 96 Stat. at 611-613, 615-617; S. Rept. No. 97-494 (Vol. 1), at 266-267, 270-271, 275-279 (1982), 1982 U.S.C.C.A.N. 781, 1014- 1025. Sect
ccordingly, we are satisfied that respondent has met the verification requirements. B. Section 6701 Penalty In 1982 Congress enacted three new assessable penalties, codified in sections 6700-6702, and rules applicable to those penalties, codified in section 6703. See Tax Equity and Fiscal Responsibility Act of 1982, Pub. L. No. 97-248, secs. 320, 322, 324, 326, 96 Stat. at 611-613, 615-617; S. Rept. No. 97-494 (Vol. 1), at 266-267, 270-271, 275-279 (1982), 1982 U.S.C.C.A.N. 781, 1014- 1025. Sect
Background As part ofa comprehensive plan to combat the proliferation ofabusive tax; shelters, in 1982 Congress enacted three new assessable penalties, which were codified in sections 6700-6702; and section 6703, which sets forth rules applicable to those penalties.
On June 23 and September 1 and 8, 2008, respondent assessed petitioner section 6703 penalties for filing frivolous Federal income tax returns for 2000, 2001, and 2(cid:16)04102re,spectively.
Background As part ofa comprehensive plan to combat the proliferation ofabusive tax shelters, in 1982 Congress enacted three new assessable penalties, which were codified in sections 6700-6702; and section 6703, which sets forth rules applicable to those penalties.
Because the taxpayer does not receive a statutory notice of deficiency before a penalty under section 6702(b) is assessed, the taxpayer may challenge his liability for the penalty in an administrative hearing under section 6320 or 6330.2 Callahan v. Commissioner, 130 T.C. 44, 49-50 (2008). In any proceeding involving the issue of whe
section 6703,3 which generally removes section 6702 penalty assessments from the deficiency jurisdiction of this Court . However, section 6330(d)(1)4 provides this Court with jurisdiction to review an appeal from the Commissioner's determination to proceed with collection activity regardless of the type of underlying tax involved . We have held .th
(i.e., within subtitle F, “Procedure and Administration”) fall outside the deficiency notice regime of sections 6212 to 6214 and thus fall outside this Court’s deficiency jurisdiction. See, e.g., sec. 6682(c) (“Deficiency Procedures Not to Apply”); sec. 6703 (“deficiency procedures * * * shall not apply with respect to the assessment or collection of the penalties provided by sections 6700, 6701, and 6702”); Van Es v. Commissioner, 115 T.C. 324, 329 (2000) (the Tax Court does not have jurisdict
a Petition for Lien or Levy Action.2 In addition to challenging the determination notice pertaining to the proposed levy for 1998 and 1999, the petition included a challenge to the notice pertaining to the collection of civil penalties imposed under section 6703 (frivolous return penalties) for 1997 and 1998.3 Upon respondent’s notifying the Court that the Forms 4340 upon which the determination notice was issued contained errors, we granted respondent’s motion to remand the case to respondent’s
Their appeal to the Court of Appeals for the Fifth Circuit was equally unsuccessful. - 4 - 5, 1994, petitioner informed respondent that she had already paid her taxes for the taxable year 1988. By notice of deficiency dated April 14, 1995, respondent determined a deficiency in petitioner's income tax in the amount of $22,779. Respondent