26 U.S.C. § 6672 : US Code - Section 6672: Failure to collect and pay over tax, or attempt to evade or defeat tax

Search 26 U.S.C. § 6672 : US Code - Section 6672: Failure to collect and pay over tax, or attempt to evade or defeat tax

(a) General rule
Any person required to collect, truthfully account for, and pay
over any tax imposed by this title who willfully fails to collect
such tax, or truthfully account for and pay over such tax, or
willfully attempts in any manner to evade or defeat any such tax or
the payment thereof, shall, in addition to other penalties provided
by law, be liable to a penalty equal to the total amount of the tax
evaded, or not collected, or not accounted for and paid over. No
penalty shall be imposed under section 6653 or part II of
subchapter A of chapter 68 for any offense to which this section is
applicable.
(b) Preliminary notice requirement
(1) In general
No penalty shall be imposed under subsection (a) unless the
Secretary notifies the taxpayer in writing by mail to an address
as determined under section 6212(b) or in person that the
taxpayer shall be subject to an assessment of such penalty.
(2) Timing of notice
The mailing of the notice described in paragraph (1) (or, in
the case of such a notice delivered in person, such delivery)
shall precede any notice and demand of any penalty under
subsection (a) by at least 60 days.
(3) Statute of limitations
If a notice described in paragraph (1) with respect to any
penalty is mailed or delivered in person before the expiration of
the period provided by section 6501 for the assessment of such
penalty (determined without regard to this paragraph), the period
provided by such section for the assessment of such penalty shall
not expire before the later of -
(A) the date 90 days after the date on which such notice was
mailed or delivered in person, or
(B) if there is a timely protest of the proposed assessment,
the date 30 days after the Secretary makes a final
administrative determination with respect to such protest.
(4) Exception for jeopardy
This subsection shall not apply if the Secretary finds that the
collection of the penalty is in jeopardy.
(c) Extension of period of collection where bond is filed
(1) In general
If, within 30 days after the day on which notice and demand of
any penalty under subsection (a) is made against any person, such
person -
(A) pays an amount which is not less than the minimum amount
required to commence a proceeding in court with respect to his
liability for such penalty,
(B) files a claim for refund of the amount so paid, and
(C) furnishes a bond which meets the requirements of
paragraph (3),
no levy or proceeding in court for the collection of the
remainder of such penalty shall be made, begun, or prosecuted
until a 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) Suit must be brought to determine liability for penalty
If, within 30 days after the day on which his claim for refund
with respect to any penalty under subsection (a) is denied, the
person described in paragraph (1) fails to begin a proceeding in
the appropriate United States district court (or in the Court of
Claims) (!1) 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 30-day
period referred to in this paragraph.
(3) Bond
The bond referred to in paragraph (1) shall be in such form and
with such sureties as the Secretary may by regulations prescribe
and shall be in an amount equal to 1 1/2 times the amount of
excess of the penalty assessed over the payment described in
paragraph (1).
(4) 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.
(5) Jeopardy collection
If the Secretary makes a finding that the collection of the
penalty is in jeopardy, nothing in this subsection shall prevent
the immediate collection of such penalty.
(d) Right of contribution where more than 1 person liable for
penalty
If more than 1 person is liable for the penalty under subsection
(a) with respect to any tax, each person who paid such penalty
shall be entitled to recover from other persons who are liable for
such penalty an amount equal to the excess of the amount paid by
such person over such person's proportionate share of the penalty.
Any claim for such a recovery may be made only in a proceeding
which is separate from, and is not joined or consolidated with -
(1) an action for collection of such penalty brought by the
United States, or
(2) a proceeding in which the United States files a
counterclaim or third-party complaint for the collection of such
penalty.
(e) Exception for voluntary board members of tax-exempt
organizations
No penalty shall be imposed by subsection (a) on any unpaid,
volunteer member of any board of trustees or directors of an
organization exempt from tax under subtitle A if such member -
(1) is solely serving in an honorary capacity,
(2) does not participate in the day-to-day or financial
operations of the organization, and
(3) does not have actual knowledge of the failure on which such
penalty is imposed.
The preceding sentence shall not apply if it results in no person
being liable for the penalty imposed by subsection (a).