Delaware Code (Titles 8, 9, 25, 30)

30 Del. C. § 536

Accuracy-related penalty

Official textdelcode.delaware.gov15 subsections

# (a)

If this section applies to any portion of an underpayment of any tax imposed by this title or Title 4 required to be shown on a return, there shall be added to the tax an amount equal to 20% (40% in the case of gross valuation misstatements) of the portion of the underpayment to which this section applies.

# (b)

This section shall apply to the portion of any underpayment which is attributable to 1 or more of the following:

# (1)

Negligence or disregard of rules and regulations.

# (2)

Any substantial understatement of tax.

# (3)

Any substantial valuation misstatement with regard to any tax imposed by Chapter 11 or Chapter 19 of this title.

# (4)

Any substantial estate or gift tax valuation understatement with respect to any tax imposed by Chapter 15 of this title [repealed].

# (c)

For purposes of subsection (b) of this section, the following terms shall have the meanings ascribed to such terms in § 6662 of the Internal Revenue Code (26 U.S.C. § 6662), or successor provisions, except that “$1,500” shall be substituted for “$5,000” and “$3,000” shall be substituted for “$10,000” each place such dollar amounts appear in the said § 6662:

# (1)

“Negligence”;

# (2)

“Disregard”;

# (3)

“Substantial understatement of income tax”;

# (4)

“Substantial valuation misstatement”;

# (5)

“Substantial estate or gift tax valuation understatement”; and

# (6)

“Gross valuation misstatement.”

# (d)

For purposes of determining under subsection (b) of this section whether a portion of any underpayment is attributable to 1 or more of the items specified in paragraphs (b)(1)-(4) of this section, the provisions of § 6662 of the Internal Revenue Code (26 U.S.C. § 6662), or successor provisions, shall be applied in the same manner as if such provisions were applicable to the taxes imposed by this title or Title 4.

# (e)

For purposes of this section, “underpayment” shall have the meaning ascribed to such term in § 6664(a) of the Internal Revenue Code (26 U.S.C. § 6664(a)), or successor provisions. The penalty prescribed by this section shall apply only in cases where a return of tax is filed.

Amendment history

68 Del. Laws, c. 187, § 1; 71 Del. Laws, c. 353, § 15; 71 Del. Laws, c. 385, § 9

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