- 10 - 2395, repealed section 6661 and replaced it with section 6662. Section 6664 was also enacted, defining the term “underpayment”. Sections 6662(a) and 6664(a) provide, in pertinent part, as follows: SEC. 6662. IMPOSITION OF ACCURACY RELATED PENALTY ON UNDERPAYMENTS. (a) Imposition of Penalty.--If this section applies to any portion of an underpayment of tax required to be shown on a return, there shall be added to the tax an amount equal to 20 percent of the portion of the underpayment to which this section applies. * * * * * * * SEC. 6664. DEFINITIONS AND SPECIAL RULES. (a) Underpayment.--For purposes of this part, the term “underpayment” means the amount by which any tax imposed by this title exceeds the excess of–- (1) the sum of-- (A) the amount shown as the tax by the taxpayer on his return, plus (B) amounts not so shown previously assessed (or collected without assessment), over (2) the amount of rebates made. [Emphasis added.] Section 1.6664-2(d), Income Tax Regs., provides further guidance regarding the phrase “collected without assessment” in section 6664(a)(1)(B): (d) Amounts not so shown previously assessed (or collected without assessment). * * * For purposes of [defining an underpayment for purposes of section 6662], the amount "collected without assessment" is the amount by which the total of the credits allowablePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011