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Can you summarize 26 CFR 301.6657-1?
Additions to the Tax and Additional Amounts > Bad checks.
Short Summary
This section of the Code of Federal Regulations governs the penalties for bad checks. It applies to persons who tender a check or money order in payment of any amount receivable under the Code. If a check or money order is not paid upon presentment, a penalty of one percent of the amount of the check or money order, in addition to any other penalties provided by law, shall be paid by the person who tendered such check or money order. However, if the amount of the check or money order is less than $500, the penalty shall be $5 or the amount of the check or money order, whichever amount is lesser. The penalty is to be paid in the same manner as tax upon the issuance of a notice and demand. There is an exemption to the penalty if the person who tendered the check or money order establishes that it was tendered in good faith with reasonable cause to believe that it would be duly paid.
Whom does it apply to?
Persons who tender a check or money order in payment of any amount receivable under the Code
What does it govern?
Penalties for bad checks
What are exemptions?
The penalty shall not apply if the person who tendered the check or money order establishes to the satisfaction of the district director that it was tendered in good faith with reasonable cause to believe that it would be duly paid.
What are the Penalties?
A penalty of one percent of the amount of the check or money order, in addition to any other penalties provided by law, shall be paid by the person who tendered such check or money order. If the amount of the check or money order is less than $500, the penalty shall be $5 or the amount of the check or money order, whichever amount is lesser.
Jurisdiction
U.S. Federal Government