26 USC 6695B - Penalty for substantial misstatements on certification provided by supplier

U.S Code last checked for updates: Aug 17, 2025

§ 6695B.

Penalty for substantial misstatements on certification provided by supplier

(a)

Imposition of penalty

If—

(1)

a person—

(A)

provides a certification described in clause (iii)(II)(bb) of section 7701(a)(52)(D) with respect to any manufactured product, eligible component, or constituent element, material, or subcomponent of an eligible component, and

(B)

knows, or reasonably should have known, that the certification would be used in connection with a determination under such section,

(2)

such person knows, or reasonably should have known, that such certification is inaccurate or false with respect to—

(A)

whether such property was produced or manufactured by a prohibited foreign entity, or

(B)

the total direct costs or total direct material costs of such property that was not produced or manufactured by a prohibited foreign entity that were provided on such certification, and

(3)

the inaccuracy or falsity described in paragraph (2) resulted in the disallowance of an applicable energy credit (as defined in section 6662(m)(2)) and an understatement of income tax (within the meaning of section 6662(d)(2)) for the taxable year in an amount which exceeds the lesser of—

(A)

5 percent of the tax required to be shown on the return for the taxable year, or

(B)

$100,000,

then such person shall pay a penalty in the amount determined under subsection (b).

(b)

Amount of penalty

The amount of the penalty imposed under subsection (a) on any person with respect to a certification shall be equal to the greater of—

(1)

10 percent of the amount of the underpayment (as defined in section 6664(a)) solely attributable to the inaccuracy or falsity described in subsection (a)(2), or

(2)

$5,000.

(c)

Exception

(d)

Definitions

(Added Pub. L. 119–21, title VII, § 70512(k)(1), July 4, 2025, 139 Stat. 268.)

cite as: 26 USC 6695B