# § 6676. Erroneous claim for refund or credit
**(a)** **Civil penalty** 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.
**(b)** **Excessive amount** For purposes of this section, the term “excessive amount” means in the case of any person the amount by which the amount of the claim for refund or credit for any taxable year exceeds the amount of such claim allowable under this title for such taxable year.
**(c)** **Noneconomic substance transactions treated as lacking reasonable cause** For purposes of this section, any excessive amount which is attributable to any transaction described in section 6662(b)(6) shall not be treated as due to reasonable cause.
**(d)** **Coordination with other penalties** This section shall not apply to any portion of the excessive amount of a claim for refund or credit which is subject to a penalty imposed under part II of subchapter A of chapter 68.
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**Source Credit**: (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.)
## Editorial Notes
### Codification
, which directed the amendment of section 6676 without specifying the act to be amended, was executed to this section, which is section 6676 of the Internal Revenue Code of 1986, to reflect the probable intent of Congress. See 2010 Amendment note below.
### Prior Provisions
A prior section 6676, added , , ; amended , , ; , , ; , , ; , , ; , , ; , §§ 1501(b), 1523(b)(3), 1524(b), , , 2748, 2749; , , , related to failure to supply identifying numbers, prior to repeal by , (c), , , applicable to returns and statements the due date for which (determined without regard to extensions) is after .
### Amendments
2025—Subsec. (a). substituted “income or employment tax” for “income tax”.
2018—Subsec. (c). substituted “reasonable cause” for “reasonable basis” in heading.
2015—Subsec. (a). , substituted “is due to reasonable cause” for “has a reasonable basis”.
, struck out “(other than a claim for a refund or credit relating to the earned income credit under section 32)” after “income tax”.
Subsec. (c). , substituted “due to reasonable cause” for “having a reasonable basis”.
2010—Subsecs. (c), (d). added subsec. (c) and redesignated former subsec. (c) as (d). See Codification note above.
## Statutory Notes and Related Subsidiaries
### Effective Date of 2025 Amendment
Amendment by applicable to claims for credit or refund after , see , set out as an Enforcement Provisions With Respect to COVID-Related Employee Retention Credits note under .
### Effective Date of 2015 Amendment
> “The amendments made by subsections (b) and (c) [amending this section] shall apply to claims filed after the date of the enactment of this Act [
>
> ].”
, , , as amended by , , , provided that:
### Effective Date of 2010 Amendment
Amendment by applicable to refunds and credits attributable to transactions entered into after , see , set out as a note under .
### Effective Date
> “The amendments made by this section [enacting this section] shall apply to any claim filed or submitted after the date of the enactment of this Act [
>
> ].”
, , , provided that: