26 CFR § 25.6694-3 - Penalty for understatement due to willful, reckless, or intentional conduct.

---
identifier: "/us/cfr/t26/s25.6694-3"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "26 CFR § 25.6694-3 - Penalty for understatement due to willful, reckless, or intentional conduct."
title_number: 26
title_name: "Internal Revenue"
section_number: "25.6694-3"
section_name: "Penalty for understatement due to willful, reckless, or intentional conduct."
chapter_name: "INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY"
subchapter_number: "B"
subchapter_name: "ESTATE AND GIFT TAXES"
part_number: "25"
part_name: "GIFT TAX; GIFTS MADE AFTER DECEMBER 31, 1954"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "26 U.S.C. 7805."
regulatory_source: "T.D. 6334, 23 FR 8904, Nov. 15, 1958; 25 FR 14021, Dec. 31, 1960, unless otherwise noted."
cfr_part: "25"
---


# 25.6694-3 Penalty for understatement due to willful, reckless, or intentional conduct.

(a) *In general.* A person who is a tax return preparer of any return or claim for refund of gift tax under chapter 12 of subtitle B of the Internal Revenue Code (Code) shall be subject to penalties under section 6694(b) of the Code in the manner stated in § 1.6694-3 of this chapter.

(b) *Effective/applicability date.* This section is applicable to returns and claims for refund filed, and advice provided, after December 31, 2008.

[T.D. 9436, 73 FR 78452, Dec. 22, 2008]