Collapse to view only § 6672. Failure to collect and pay over tax, or attempt to evade or defeat tax
- § 6671. Rules for application of assessable penalties
- § 6672. Failure to collect and pay over tax, or attempt to evade or defeat tax
- § 6673. Sanctions and costs awarded by courts
- § 6674. Fraudulent statement or failure to furnish statement to employee
- § 6675. Excessive claims with respect to the use of certain fuels
- § 6676. Erroneous claim for refund or credit
- § 6677. Failure to file information with respect to certain foreign trusts
- [§ 6678. Repealed.
- § 6679. Failure to file returns, etc., with respect to foreign corporations or foreign partnerships
- [§ 6680. Repealed.
- [§ 6681. Repealed.
- § 6682. False information with respect to withholding
- [§ 6683. Repealed.
- § 6684. Assessable penalties with respect to liability for tax under chapter 42
- § 6685. Assessable penalty with respect to public inspection requirements for certain tax-exempt organizations
- § 6686. Failure to file returns or supply information by DISC or former FSC
- [§ 6687. Repealed.
- § 6688. Assessable penalties with respect to information required to be furnished under section 7654
- § 6689. Failure to file notice of redetermination of foreign tax
- § 6690. Fraudulent statement or failure to furnish statement to plan participant
- [§ 6691. Reserved]
- § 6692. Failure to file actuarial report
- § 6693. Failure to provide reports on certain tax-favored accounts or annuities; penalties relating to designated nondeductible contributions
- § 6694. Understatement of taxpayer’s liability by tax return preparer
- § 6695. Other assessable penalties with respect to the preparation of tax returns for other persons
- § 6695A. Substantial and gross valuation misstatements attributable to incorrect appraisals
- § 6696. Rules applicable with respect to sections 6694, 6695, and 6695A
- [§ 6697. Repealed.
- § 6698. Failure to file partnership return
- [§ 6698A. Repealed.
- § 6699. Failure to file S corporation return
- § 6700. Promoting abusive tax shelters, etc.
- § 6701. Penalties for aiding and abetting understatement of tax liability
- § 6702. Frivolous tax submissions
- § 6703. Rules applicable to penalties under sections 6700, 6701, and 6702
- § 6704. Failure to keep records necessary to meet reporting requirements under section 6047(d)
- § 6705. Failure by broker to provide notice to payors
- § 6706. Original issue discount information requirements
- § 6707. Failure to furnish information regarding reportable transactions
- § 6707A. Penalty for failure to include reportable transaction information with return
- § 6708. Failure to maintain lists of advisees with respect to reportable transactions
- § 6709. Penalties with respect to mortgage credit certificates
- § 6710. Failure to disclose that contributions are nondeductible
- § 6711. Failure by tax-exempt organization to disclose that certain information or service available from Federal Government
- § 6712. Failure to disclose treaty-based return positions
- § 6713. Disclosure or use of information by preparers of returns
- § 6714. Failure to meet disclosure requirements applicable to quid pro quo contributions
- § 6715. Dyed fuel sold for use or used in taxable use, etc.
- § 6715A. Tampering with or failing to maintain security requirements for mechanical dye injection systems
- [§ 6716. Repealed.
- § 6717. Refusal of entry
- § 6718. Failure to display tax registration on vessels
- § 6719. Failure to register or reregister
- § 6720. Fraudulent acknowledgments with respect to donations of motor vehicles, boats, and airplanes
- § 6720A. Penalty with respect to certain adulterated fuels
- § 6720B. Fraudulent identification of exempt use property
- § 6720C. Penalty for failure to notify health plan of cessation of eligibility for continuation coverage premium assistance
§ 6671. Rules for application of assessable penalties
(a) Penalty assessed as tax
(b) Person defined
(Aug. 16, 1954, ch. 736, 68A Stat. 828; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)
§ 6672. Failure to collect and pay over tax, or attempt to evade or defeat tax
(a) General rule
(b) Preliminary notice requirement
(1) In general
(2) Timing of notice
(3) Statute of limitations
If a notice described in paragraph (1) with respect to any penalty is mailed or delivered in person before the expiration of the period provided by section 6501 for the assessment of such penalty (determined without regard to this paragraph), the period provided by such section for the assessment of such penalty shall not expire before the later of—
(A) the date 90 days after the date on which such notice was mailed or delivered in person, or
(B) if there is a timely protest of the proposed assessment, the date 30 days after the Secretary makes a final administrative determination with respect to such protest.
(4) Exception for jeopardy
(c) Extension of period of collection where bond is filed
(1) In general
If, within 30 days after the day on which notice and demand of any penalty under subsection (a) is made against any person, such person—
(A) pays an amount which is not less than the minimum amount required to commence a proceeding in court with respect to his liability for such penalty,
(B) files a claim for refund of the amount so paid, and
(C) furnishes a bond which meets the requirements of paragraph (3),
no levy or proceeding in court for the collection of the remainder of such penalty shall be made, begun, or prosecuted until a final resolution of a proceeding begun as provided in paragraph (2). Notwithstanding the provisions of section 7421(a), the beginning of such proceeding or levy during the time such prohibition is in force may be enjoined by a proceeding in the proper court. Nothing in this paragraph shall be construed to prohibit any counterclaim for the remainder of such penalty in a proceeding begun as provided in paragraph (2).
(2) Suit must be brought to determine liability for penalty
(3) Bond
(4) Suspension of running of period of limitations on collection
(5) Jeopardy collection
(d) Right of contribution where more than 1 person liable for penalty
If more than 1 person is liable for the penalty under subsection (a) with respect to any tax, each person who paid such penalty shall be entitled to recover from other persons who are liable for such penalty an amount equal to the excess of the amount paid by such person over such person’s proportionate share of the penalty. Any claim for such a recovery may be made only in a proceeding which is separate from, and is not joined or consolidated with—
(1) an action for collection of such penalty brought by the United States, or
(2) a proceeding in which the United States files a counterclaim or third-party complaint for the collection of such penalty.
(e) Exception for voluntary board members of tax-exempt organizations
No penalty shall be imposed by subsection (a) on any unpaid, volunteer member of any board of trustees or directors of an organization exempt from tax under subtitle A if such member—
(1) is solely serving in an honorary capacity,
(2) does not participate in the day-to-day or financial operations of the organization, and
(3) does not have actual knowledge of the failure on which such penalty is imposed.
The preceding sentence shall not apply if it results in no person being liable for the penalty imposed by subsection (a).
(Aug. 16, 1954, ch. 736, 68A Stat. 828; Pub. L. 95–628, § 9(a), Nov. 10, 1978, 92 Stat. 3633; Pub. L. 101–239, title VII, §§ 7721(c)(9), 7737(a), Dec. 19, 1989, 103 Stat. 2400, 2404; Pub. L. 104–168, title IX, §§ 901(a), 903(a), 904(a), July 30, 1996, 110 Stat. 1465–1467; Pub. L. 105–206, title III, § 3307(a), (b), July 22, 1998, 112 Stat. 744; Pub. L. 115–141, div. U, title IV, § 401(a)(325)(D), Mar. 23, 2018, 132 Stat. 1200.)
§ 6673. Sanctions and costs awarded by courts
(a) Tax court proceedings
(1) Procedures instituted primarily for delay, etc.
Whenever it appears to the Tax Court that—
(A) proceedings before it have been instituted or maintained by the taxpayer primarily for delay,
(B) the taxpayer’s position in such proceeding is frivolous or groundless, or
(C) the taxpayer unreasonably failed to pursue available administrative remedies,
the Tax Court, in its decision, may require the taxpayer to pay to the United States a penalty not in excess of $25,000.
(2) Counsel’s liability for excessive costs
Whenever it appears to the Tax Court that any attorney or other person admitted to practice before the Tax Court has multiplied the proceedings in any case unreasonably and vexatiously, the Tax Court may require—
(A) that such attorney or other person pay personally the excess costs, expenses, and attorneys’ fees reasonably incurred because of such conduct, or
(B) if such attorney is appearing on behalf of the Commissioner of Internal Revenue, that the United States pay such excess costs, expenses, and attorneys’ fees in the same manner as such an award by a district court.
(b) Proceedings in other courts
(1) Claims under section 7433
(2) Collection of sanctions and costs
(3) Sanctions and costs awarded by a court of appeals
(Aug. 16, 1954, ch. 736, 68A Stat. 828; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 97–248, title II, § 292(b), (d)(2)(A), Sept. 3, 1982, 96 Stat. 574; Pub. L. 99–514, title XV, § 1552(a), Oct. 22, 1986, 100 Stat. 2753; Pub. L. 100–647, title VI, § 6241(b), Nov. 10, 1988, 102 Stat. 3748; Pub. L. 101–239, title VII, § 7731(a), Dec. 19, 1989, 103 Stat. 2400.)
§ 6674. Fraudulent statement or failure to furnish statement to employee
In addition to the criminal penalty provided by section 7204, any person required under the provisions of section 6051 or 6053(b) to furnish a statement to an employee who willfully furnishes a false or fraudulent statement, or who willfully fails to furnish a statement in the manner, at the time, and showing the information required under section 6051 or 6053(b), or regulations prescribed thereunder, shall for each such failure be subject to a penalty under this subchapter of $50, which shall be assessed and collected in the same manner as the tax on employers imposed by section 3111.
(Aug. 16, 1954, ch. 736, 68A Stat. 828; Pub. L. 89–97, title III, § 313(e)(2)(C), July 30, 1965, 79 Stat. 385.)
§ 6675. Excessive claims with respect to the use of certain fuels
(a) Civil penalty
In addition to any criminal penalty provided by law, if a claim is made under section 6416(a)(4) (relating to certain sales of gasoline), section 6420 (relating to gasoline used on farms), 6421 (relating to gasoline used for certain nonhighway purposes or by local transit systems), or 6427 (relating to fuels not used for taxable purposes) 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 to a penalty in an amount equal to whichever of the following is the greater:
(1) Two times the excessive amount; or
(2) $10.
(b) Excessive amount defined
(1) the amount claimed under section 6416(a)(4), 6420, 6421, or 6427, as the case may be, for any period, exceeds
(2) the amount allowable under such section for such period.
(c) Assessment and collection of penalty
(Added Apr. 2, 1956, ch. 160, § 3, 70 Stat. 90; amended June 29, 1956, ch. 462, title II, § 208(d)(2), 70 Stat. 396; Pub. L. 89–44, title II, § 202(c)(3)(A), June 21, 1965, 79 Stat. 139; Pub. L. 91–258, title II, § 207(d)(8), May 21, 1970, 84 Stat. 249; Pub. L. 95–618, title II, § 233(b)(2)(D), Nov. 9, 1978, 92 Stat. 3191; Pub. L. 97–424, title V, § 515(b)(11)(A)–(C), Jan. 6, 1983, 96 Stat. 2182; Pub. L. 109–59, title XI, § 11163(d)(2), (3), Aug. 10, 2005, 119 Stat. 1975.)
§ 6676. Erroneous claim for refund or credit
(a) Civil penalty
(b) Excessive amount
(c) Noneconomic substance transactions treated as lacking reasonable cause
(d) Coordination with other penalties
(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.)
§ 6677. Failure to file information with respect to certain foreign trusts
(a) Civil penalty
In addition to any criminal penalty provided by law, if any notice or return required to be filed by section 6048—
(1) is not filed on or before the time provided in such section, or
(2) does not include all the information required pursuant to such section or includes incorrect information,
the person required to file such notice or return shall pay a penalty equal to the greater of $10,000 or 35 percent of the gross reportable amount. If any failure described in the preceding sentence continues for more than 90 days after the day on which the Secretary mails notice of such failure to the person required to pay such penalty, such person shall pay a penalty (in addition to the amount determined under the preceding sentence) of $10,000 for each 30-day period (or fraction thereof) during which such failure continues after the expiration of such 90-day period. At such time as the gross reportable amount with respect to any failure can be determined by the Secretary, any subsequent penalty imposed under this subsection with respect to such failure shall be reduced as necessary to assure that the aggregate amount of such penalties do not exceed the gross reportable amount (and to the extent that such aggregate amount already exceeds the gross reportable amount the Secretary shall refund such excess to the taxpayer).
(b) Special rules for returns under section 6048(b)
In the case of a return required under section 6048(b)—
(1) the United States person referred to in such section shall be liable for the penalty imposed by subsection (a), and
(2) subsection (a) shall be applied by substituting “5 percent” for “35 percent”.
(c) Gross reportable amount
For purposes of subsection (a), the term “gross reportable amount” means—
(1) the gross value of the property involved in the event (determined as of the date of the event) in the case of a failure relating to section 6048(a),
(2) the gross value of the portion of the trust’s assets at the close of the year treated as owned by the United States person in the case of a failure relating to section 6048(b)(1), and
(3) the gross amount of the distributions in the case of a failure relating to section 6048(c).
(d) Reasonable cause exception
(e) Deficiency procedures not to apply
(Added Pub. L. 87–834, § 7(g), Oct. 16, 1962, 76 Stat. 988; amended Pub. L. 91–172, title I, § 101(j)(53), Dec. 30, 1969, 83 Stat. 531; Pub. L. 93–406, title II, § 1016(a)(21), Sept. 2, 1974, 88 Stat. 931; Pub. L. 94–455, title X, § 1013(d)(2), Oct. 4, 1976, 90 Stat. 1616; Pub. L. 104–188, title I, § 1901(b), Aug. 20, 1996, 110 Stat. 1907; Pub. L. 111–147, title V, § 535(a), Mar. 18, 2010, 124 Stat. 115.)
[§ 6678. Repealed. Pub. L. 99–514, title XV, § 1501(d)(2), Oct. 22, 1986,
§ 6679. Failure to file returns, etc., with respect to foreign corporations or foreign partnerships
(a) Civil penalty
(1) In general
(2) Increase in penalty where failure continues after notification
(b) Deficiency procedures not to apply
(Added Pub. L. 87–834, § 20(c), Oct. 16, 1962, 76 Stat. 1062; amended Pub. L. 91–172, title I, § 101(j)(54), Dec. 30, 1969, 83 Stat. 532; Pub. L. 93–406, title II, § 1016(a)(22), Sept. 2, 1974, 88 Stat. 931; Pub. L. 97–248, title III, § 340(b)(1), (2), title IV, § 405(b), (c)(2), Sept. 3, 1982, 96 Stat. 634, 670; Pub. L. 97–448, title III, § 306(c)(2), Jan. 12, 1983, 96 Stat. 2406; Pub. L. 105–34, title XI, § 1143(b), Aug. 5, 1997, 111 Stat. 983; Pub. L. 108–357, title IV, § 413(c)(29), Oct. 22, 2004, 118 Stat. 1509; Pub. L. 115–141, div. U, title IV, § 401(a)(308), Mar. 23, 2018, 132 Stat. 1199.)
[§ 6680. Repealed. Pub. L. 94–455, title XIX, § 1904(b)(10)(A)(vi)(I), Oct. 4, 1976, 90 Stat. 1817]
[§ 6681. Repealed. Pub. L. 94–455, title XIX, § 1904(b)(10)(D)(i), Oct. 4, 1976, 90 Stat. 1817]
§ 6682. False information with respect to withholding
(a) Civil penalty
In addition to any criminal penalty provided by law, if—
(1) any individual makes a statement under section 3402 or section 3406 which results in a decrease in the amounts deducted and withheld under chapter 24, and
(2) as of the time such statement was made, there was no reasonable basis for such statement,
such individual shall pay a penalty of $500 for such statement.
(b) Exception
The Secretary may waive (in whole or in part) the penalty imposed under subsection (a) if the taxes imposed with respect to the individual under subtitle A for the taxable year are equal to or less than the sum of—
(1) the credits against such taxes allowed by part IV of subchapter A of chapter 1, and
(2) the payments of estimated tax which are considered payments on account of such taxes.
(c) Deficiency procedures not to apply
(Added Pub. L. 89–368, title I, § 101(e)(4)(A), Mar. 15, 1966, 80 Stat. 61; amended Pub. L. 91–172, title I, § 101(j)(55), Dec. 30, 1969, 83 Stat. 532; Pub. L. 93–406, title II, § 1016(a)(23), Sept. 2, 1974, 88 Stat. 931; Pub. L. 97–34, title VII, § 721(a), Aug. 13, 1981, 95 Stat. 340; Pub. L. 97–248, title III, §§ 306(a), 308(a), Sept. 3, 1982, 96 Stat. 588, 591; Pub. L. 98–67, title I, §§ 102(a), 107(a), Aug. 5, 1983, 97 Stat. 369, 382.)
[§ 6683. Repealed. Pub. L. 109–135, title IV, § 403(n)(3)(A), Dec. 21, 2005, 119 Stat. 2626]
§ 6684. Assessable penalties with respect to liability for tax under chapter 42
If any person becomes liable for tax under any section of chapter 42 (relating to private foundations and certain other tax-exempt organizations) by reason of any act or failure to act which is not due to reasonable cause and either—
(1) such person has theretofore been liable for tax under such chapter, or
(2) such act or failure to act is both willful and flagrant,
then such person shall be liable for a penalty equal to the amount of such tax.
(Added Pub. L. 91–172, title I, § 101(c), Dec. 30, 1969, 83 Stat. 519; amended Pub. L. 100–203, title X, § 10712(c)(4), Dec. 22, 1987, 101 Stat. 1330–467.)
§ 6685. Assessable penalty with respect to public inspection requirements for certain tax-exempt organizations
In addition to the penalty imposed by section 7207 (relating to fraudulent returns, statements, or other documents), any person who is required to comply with the requirements of subsection (d) of section 6104 and who fails to so comply with respect to any return or application, if such failure is willful, shall pay a penalty of $5,000 with respect to each such return or application.
(Added Pub. L. 91–172, title I, § 101(e)(4), Dec. 30, 1969, 83 Stat. 524; amended Pub. L. 96–603, § 1(d)(4), Dec. 28, 1980, 94 Stat. 3504; Pub. L. 100–203, title X, § 10704(b)(1), Dec. 22, 1987, 101 Stat. 1330–462; Pub. L. 104–168, title XIII, § 1313(b), July 30, 1996, 110 Stat. 1480; Pub. L. 105–277, div. J, title I, § 1004(b)(2)(D), Oct. 21, 1998, 112 Stat. 2681–890.)
§ 6686. Failure to file returns or supply information by DISC or former FSC
In addition to the penalty imposed by section 7203 (relating to willful failure to file return, supply information, or pay tax) any person required to supply information or to file a return under section 6011(c) who fails to supply such information or file such return at the time prescribed by the Secretary, or who files a return which does not show the information required, shall pay a penalty of $100 for each failure to supply information (but the total amount imposed on the delinquent person for all such failures during any calendar year shall not exceed $25,000) or a penalty of $1,000 for each failure to file a return, unless it is shown that such failure is due to reasonable cause.
(Added Pub. L. 92–178, title V, § 504(d), Dec. 10, 1971, 85 Stat. 551; amended Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 98–369, div. A, title VIII, § 801(d)(15)(A), July 18, 1984, 98 Stat. 997; Pub. L. 110–172, § 11(g)(21), Dec. 29, 2007, 121 Stat. 2491.)
[§ 6687. Repealed. Pub. L. 101–239, title VII, § 7711(b)(1), Dec. 19, 1989, 103 Stat. 2393]
§ 6688. Assessable penalties with respect to information required to be furnished under section 7654
In addition to any criminal penalty provided by law, any person described in section 7654(a) who is required under section 937(c) or by regulations prescribed under section 7654 to furnish information and who fails to comply with such requirement at the time prescribed by such regulations unless it is shown that such failure is due to reasonable cause and not to willful neglect, shall pay (upon notice and demand by the Secretary and in the same manner as tax) a penalty of $1,000 for each such failure.
(Added Pub. L. 92–606, § 1(c), Oct. 31, 1972, 86 Stat. 1496, § 6687; renumbered § 6688, Pub. L. 93–406, title II, § 1016(b)(4), Sept. 2, 1974, 88 Stat. 932; amended Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 108–357, title VIII, § 908(b), Oct. 22, 2004, 118 Stat. 1656.)
§ 6689. Failure to file notice of redetermination of foreign tax
(a) Civil penalty
If the taxpayer fails to notify the Secretary (on or before the date prescribed by regulations for giving such notice) of a foreign tax redetermination, unless it is shown that such failure is due to reasonable cause and not due to willful neglect, there shall be added to the deficiency attributable to such redetermination an amount (not in excess of 25 percent of the deficiency) determined as follows—
(1) 5 percent of the deficiency if the failure is for not more than 1 month, with
(2) an additional 5 percent of the deficiency for each month (or fraction thereof) during which the failure continues.
(b) Foreign tax redetermination defined
(Added Pub. L. 96–603, § 2(c)(2), Dec. 28, 1980, 94 Stat. 3509.)
§ 6690. Fraudulent statement or failure to furnish statement to plan participant
Any person required under section 6057(e) to furnish a statement to a participant who willfully furnishes a false or fraudulent statement, or who willfully fails to furnish a statement in the manner, at the time, and showing the information required under section 6057(e), or regulations prescribed thereunder, shall for each such act, or for each such failure, be subject to a penalty under this subchapter of $50, which shall be assessed and collected in the same manner as the tax on employers imposed by section 3111.
(Added Pub. L. 93–406, title II, § 1031(b)(2)(A), Sept. 2, 1974, 88 Stat. 946.)
[§ 6691. Reserved]
§ 6692. Failure to file actuarial report
The plan administrator (as defined in section 414(g)) of each defined benefit plan to which section 412 applies who fails to file the report required by section 6059 at the time and in the manner required by section 6059, shall pay a penalty of $1,000 for each such failure unless it is shown that such failure is due to reasonable cause.
(Added Pub. L. 93–406, title II, § 1033(b), Sept. 2, 1974, 88 Stat. 948.)
§ 6693. Failure to provide reports on certain tax-favored accounts or annuities; penalties relating to designated nondeductible contributions
(a) Reports
(1) In general
(2) Provisions
The provisions referred to in this paragraph are—
(A) subsections (i) and (l) of section 408 (relating to individual retirement plans),
(B) section 220(h) (relating to Archer MSAs),
(C) section 223(h) (relating to health savings accounts),
(D) section 529(d) (relating to qualified tuition programs),
(E) section 529A(d) (relating to qualified ABLE programs), and
(F) section 530(h) (relating to Coverdell education savings accounts).
This subsection shall not apply to any report which is an information return described in section 6724(d)(1)(C)(i) or a payee statement described in section 6724(d)(2)(X).
(b) Penalties relating to nondeductible contributions
(1) Overstatement of designated nondeductible contributions
Any individual who—
(A) is required to furnish information under section 408(o)(4) as to the amount of designated nondeductible contributions made for any taxable year, and
(B) overstates the amount of such contributions made for such taxable year,
shall pay a penalty of $100 for each such overstatement unless it is shown that such overstatement is due to reasonable cause.
(2) Failure to file form
(c) Penalties relating to simple retirement accounts
(1) Employer penalties
(2) Trustee and issuer penalties
A trustee or issuer who fails—
(A) to provide 1 or more statements required by the last sentence of section 408(i) shall pay a penalty of $50 for each day on which such failures continue, or
(B) to provide 1 or more summary descriptions required by section 408(l)(2)(B) shall pay a penalty of $50 for each day on which such failures continue.
(3) Reasonable cause exception
(d) Deficiency procedures not to apply
(Added Pub. L. 93–406, title II, § 2002(f), Sept. 2, 1974, 88 Stat. 967; amended Pub. L. 96–222, title I, § 101(a)(10)(H), Apr. 1, 1980, 94 Stat. 203; Pub. L. 98–369, div. A, title I, § 147(b), July 18, 1984, 98 Stat. 687; Pub. L. 99–514, title XI, § 1102(d)(1), (2)(A), (B), Oct. 22, 1986, 100 Stat. 2416; Pub. L. 100–647, title I, § 1011(b)(4)(A), (B)(i), Nov. 10, 1988, 102 Stat. 3456, 3457; Pub. L. 104–188, title I, §§ 1421(b)(4)(B), 1455(d)(3), Aug. 20, 1996, 110 Stat. 1796, 1818; Pub. L. 104–191, title III, § 301(g), Aug. 21, 1996, 110 Stat. 2052; Pub. L. 105–34, title II, §§ 211(e)(2)(B), (C), 213(c), title XVI, §§ 1601(d)(1)(C)(ii), 1602(a)(4), Aug. 5, 1997, 111 Stat. 812, 816, 1087, 1094; Pub. L. 105–277, div. J, title IV, § 4006(c)(4), Oct. 21, 1998, 112 Stat. 2681–913; Pub. L. 106–554, § 1(a)(7) [title II, § 202(b)(2)(E)], Dec. 21, 2000, 114 Stat. 2763, 2763A–629; Pub. L. 107–16, title IV, § 402(a)(4)(A), June 7, 2001, 115 Stat. 60; Pub. L. 107–22, § 1(b)(2)(C), July 26, 2001, 115 Stat. 197; Pub. L. 108–173, title XII, § 1201(g), Dec. 8, 2003, 117 Stat. 2479; Pub. L. 113–295, div. B, title I, § 102(c), Dec. 19, 2014, 128 Stat. 4062.)
§ 6694. Understatement of taxpayer’s liability by tax return preparer
(a) Understatement due to unreasonable positions
(1) In general
If a tax return preparer—
(A) prepares any return or claim of refund with respect to which any part of an understatement of liability is due to a position described in paragraph (2), and
(B) knew (or reasonably should have known) of the position,
such tax return preparer shall pay a penalty with respect to each such return or claim in an amount equal to the greater of $1,000 or 50 percent of the income derived (or to be derived) by the tax return preparer with respect to the return or claim.
(2) Unreasonable position
(A) In general
(B) Disclosed positions
(C) Tax shelters and reportable transactions
(3) Reasonable cause exception
(b) Understatement due to willful or reckless conduct
(1) In general
Any tax return preparer who prepares any return or claim for refund with respect to which any part of an understatement of liability is due to a conduct described in paragraph (2) shall pay a penalty with respect to each such return or claim in an amount equal to the greater of—
(A) $5,000, or
(B) 75 percent of the income derived (or to be derived) by the tax return preparer with respect to the return or claim.
(2) Willful or reckless conduct
Conduct described in this paragraph is conduct by the tax return preparer which is—
(A) a willful attempt in any manner to understate the liability for tax on the return or claim, or
(B) a reckless or intentional disregard of rules or regulations.
(3) Reduction in penalty
(c) Extension of period of collection where preparer pays 15 percent of penalty
(1) In general
(2) Preparer must bring suit in district court to determine his liability for penalty
(3) Suspension of running of period of limitations on collection
(d) Abatement of penalty where taxpayer’s liability not understated
(e) Understatement of liability defined
(f) Cross reference
(Added Pub. L. 94–455, title XII, § 1203(b)(1), Oct. 4, 1976,
§ 6695. Other assessable penalties with respect to the preparation of tax returns for other persons
(a) Failure to furnish copy to taxpayer
(b) Failure to sign return
(c) Failure to furnish identifying number
(d) Failure to retain copy or list
(e) Failure to file correct information returns
Any person required to make a return under section 6060 who fails to comply with the requirements of such section shall pay a penalty of $50 for—
(1) each failure to file a return as required under such section, and
(2) each failure to set forth an item in the return as required under section,
unless it is shown that such failure is due to reasonable cause and not due to willful neglect. The maximum penalty imposed under this subsection on any person with respect to any return period shall not exceed $25,000.
(f) Negotiation of check
(g) Failure to be diligent in determining eligibility for certain tax benefits
Any person who is a tax return preparer with respect to any return or claim for refund who fails to comply with due diligence requirements imposed by the Secretary by regulations with respect to determining—
(1) eligibility to file as a head of household (as defined in section 2(b)) on the return, or
(2) eligibility for, or the amount of, the credit allowable by section 24, 25A(a)(1), or 32,
shall pay a penalty of $500 for each such failure.
(h) Adjustment for inflation
(1) In general
(2) Rounding
If any amount adjusted under paragraph (1)—
(A) is not less than $5,000 and is not a multiple of $500, such amount shall be rounded to the next lowest multiple of $500, and
(B) is not described in subparagraph (A) and is not a multiple of $5, such amount shall be rounded to the next lowest multiple of $5.
(Added Pub. L. 94–455, title XII, § 1203(f), Oct. 4, 1976, 90 Stat. 1692; amended Pub. L. 95–600, title VII, § 701(cc)(1), Nov. 6, 1978, 92 Stat. 2923; Pub. L. 98–369, div. A, title I, § 179(b)(2), July 18, 1984, 98 Stat. 718; Pub. L. 99–44, § 1(b), May 24, 1985, 99 Stat. 77; Pub. L. 101–239, title VII, § 7733(a)–(d), Dec. 19, 1989, 103 Stat. 2402, 2403; Pub. L. 105–34, title X, § 1085(a)(2), Aug. 5, 1997, 111 Stat. 956; Pub. L. 110–28, title VIII, § 8246(a)(2)(G)(i), (ii), May 25, 2007, 121 Stat. 202; Pub. L. 112–41, title V, § 501(a), Oct. 21, 2011, 125 Stat. 459; Pub. L. 113–295, div. B, title II, § 208(c), Dec. 19, 2014, 128 Stat. 4073; Pub. L. 114–113, div. Q, title II, § 207(a), Dec. 18, 2015, 129 Stat. 3082; Pub. L. 115–97, title I, §§ 11001(b), 11002(d)(1)(MM), Dec. 22, 2017, 131 Stat. 2058, 2060; Pub. L. 115–141, div. U, title IV, § 401(a)(299)(C), (309), (310), Mar. 23, 2018, 132 Stat. 1198, 1199.)
§ 6695A. Substantial and gross valuation misstatements attributable to incorrect appraisals
(a) Imposition of penaltyIf—
(1) a person prepares an appraisal of the value of property and such person knows, or reasonably should have known, that the appraisal would be used in connection with a return or a claim for refund, and
(2) the claimed value of the property on a return or claim for refund which is based on such appraisal results in a substantial valuation misstatement under chapter 1 (within the meaning of section 6662(e)), a substantial estate or gift tax valuation understatement (within the meaning of section 6662(g)), or a gross valuation misstatement (within the meaning of section 6662(h)), with respect to such property,
then such person shall pay a penalty in the amount determined under subsection (b).
(b) Amount of penaltyThe amount of the penalty imposed under subsection (a) on any person with respect to an appraisal shall be equal to the lesser of—
(1) the greater of—
(A) 10 percent of the amount of the underpayment (as defined in section 6664(a)) attributable to the misstatement described in subsection (a)(2), or
(B) $1,000, or
(2) 125 percent of the gross income received by the person described in subsection (a)(1) from the preparation of the appraisal.
(c) Exception
(Added Pub. L. 109–280, title XII, § 1219(b)(1), Aug. 17, 2006, 120 Stat. 1084; amended Pub. L. 110–172, §§ 3(e)(1), 11(a)(40), Dec. 29, 2007, 121 Stat. 2474, 2488.)
§ 6696. Rules applicable with respect to sections 6694, 6695, and 6695A
(a) Penalties to be additional to any other penalties
(b) Deficiency procedures not to apply
(c) Procedure for claiming refund
(d) Periods of limitation
(1) Assessment
(2) Claim for refund
(e) Definitions
For purposes of sections 6694, 6695, and 6695A—
(1) Return
(2) Claim for refund
(Added Pub. L. 94–455, title XII, § 1203(f), Oct. 4, 1976, 90 Stat. 1693; amended Pub. L. 109–280, title XII, § 1219(b)(2), Aug. 17, 2006, 120 Stat. 1084; Pub. L. 110–28, title VIII, § 8246(a)(2)(H), May 25, 2007, 121 Stat. 202; Pub. L. 110–172, § 3(e)(2), Dec. 29, 2007, 121 Stat. 2474; Pub. L. 115–141, div. U, title II, § 206(n)(3), title IV, § 401(a)(311), (312), Mar. 23, 2018, 132 Stat. 1182, 1199.)
[§ 6697. Repealed. Pub. L. 111–325, title V, § 501(a), Dec. 22, 2010, 124 Stat. 3554]
§ 6698. Failure to file partnership return
(a) General rule
In addition to the penalty imposed by section 7203 (relating to willful failure to file return, supply information, or pay tax), if any partnership required to file a return under section 6031, or a partnership adjustment tracking report under section 6226(b)(4)(A), for any taxable year—
(1) fails to file such return, or such report, at the time prescribed therefor (determined with regard to any extension of time for filing), or
(2) files a return or a report which fails to show the information required under section 6031 or 6226(b)(4)(A), respectively,
such partnership shall be liable for a penalty determined under subsection (b) for each month (or fraction thereof) during which such failure continues (but not to exceed 12 months), unless it is shown that such failure is due to reasonable cause.
(b) Amount per month
For purposes of subsection (a), the amount determined under this subsection for any month is the product of—
(1) $195, multiplied by
(2) the number of persons who were partners in the partnership during any part of the taxable year.
(c) Assessment of penalty
(d) Deficiency procedures not to apply
(e) Adjustment for inflation
(1) In general
(2) Rounding
(Added Pub. L. 95–600, title II, § 211(a), Nov. 6, 1978, 92 Stat. 2817; amended Pub. L. 110–142, § 8(a), (b), Dec. 20, 2007, 121 Stat. 1806; Pub. L. 110–458, title I, § 127(a), Dec. 23, 2008, 122 Stat. 5116; Pub. L. 111–92, § 16(a), Nov. 6, 2009, 123 Stat. 2996; Pub. L. 113–295, div. B, title II, § 208(d), Dec. 19, 2014, 128 Stat. 4073; Pub. L. 115–97, title I, § 11002(d)(1)(NN), Dec. 22, 2017, 131 Stat. 2061; Pub. L. 115–141, div. U, title II, § 206(n)(2), title IV, § 401(a)(299)(D), (313), Mar. 23, 2018, 132 Stat. 1182, 1198, 1199.)
[§ 6698A. Repealed. Pub. L. 96–223, title IV, § 401(a), Apr. 2, 1980, 94 Stat. 299]
§ 6699. Failure to file S corporation return
(a) General rule
In addition to the penalty imposed by section 7203 (relating to willful failure to file return, supply information, or pay tax), if any S corporation required to file a return under section 6037 for any taxable year—
(1) fails to file such return at the time prescribed therefor (determined with regard to any extension of time for filing), or
(2) files a return which fails to show the information required under section 6037,
such S corporation shall be liable for a penalty determined under subsection (b) for each month (or fraction thereof) during which such failure continues (but not to exceed 12 months), unless it is shown that such failure is due to reasonable cause.
(b) Amount per month
For purposes of subsection (a), the amount determined under this subsection for any month is the product of—
(1) $195, multiplied by
(2) the number of persons who were shareholders in the S corporation during any part of the taxable year.
(c) Assessment of penalty
(d) Deficiency procedures not to apply
(e) Adjustment for inflation
(1) In general
(2) Rounding
(Added Pub. L. 110–142, § 9(a), Dec. 20, 2007, 121 Stat. 1807; amended Pub. L. 110–458, title I, § 128(a), Dec. 23, 2008, 122 Stat. 5116; Pub. L. 111–92, § 16(a), Nov. 6, 2009, 123 Stat. 2996; Pub. L. 113–295, div. B, title II, § 208(e), Dec. 19, 2014, 128 Stat. 4073; Pub. L. 115–97, title I, § 11002(d)(1)(OO), Dec. 22, 2017, 131 Stat. 2061; Pub. L. 115–141, div. U, title IV, § 401(a)(299)(E), Mar. 23, 2018, 132 Stat. 1198.)
§ 6700. Promoting abusive tax shelters, etc.
(a) Imposition of penaltyAny person who—
(1)
(A) organizes (or assists in the organization of)—
(i) a partnership or other entity,
(ii) any investment plan or arrangement, or
(iii) any other plan or arrangement, or
(B) participates (directly or indirectly) in the sale of any interest in an entity or plan or arrangement referred to in subparagraph (A), and
(2) makes or furnishes or causes another person to make or furnish (in connection with such organization or sale)—
(A) a statement with respect to the allowability of any deduction or credit, the excludability of any income, or the securing of any other tax benefit by reason of holding an interest in the entity or participating in the plan or arrangement which the person knows or has reason to know is false or fraudulent as to any material matter, or
(B) a gross valuation overstatement as to any material matter,
shall pay, with respect to each activity described in paragraph (1), a penalty equal to $1,000 or, if the person establishes that it is lesser, 100 percent of the gross income derived (or to be derived) by such person from such activity. For purposes of the preceding sentence, activities described in paragraph (1)(A) with respect to each entity or arrangement shall be treated as a separate activity and participation in each sale described in paragraph (1)(B) shall be so treated. Notwithstanding the first sentence, if an activity with respect to which a penalty imposed under this subsection involves a statement described in paragraph (2)(A), the amount of the penalty shall be equal to 50 percent of the gross income derived (or to be derived) from such activity by the person on which the penalty is imposed.
(b) Rules relating to penalty for gross valuation overstatements
(1) Gross valuation overstatement definedFor purposes of this section, the term “gross valuation overstatement” means any statement as to the value of any property or services if—
(A) the value so stated exceeds 200 percent of the amount determined to be the correct valuation, and
(B) the value of such property or services is directly related to the amount of any deduction or credit allowable under chapter 1 to any participant.
(2) Authority to waive
(c) Penalty in addition to other penalties
(Added Pub. L. 97–248, title III, § 320(a), Sept. 3, 1982, 96 Stat. 611; amended Pub. L. 98–369, div. A, title I, § 143(a), July 18, 1984, 98 Stat. 682; Pub. L. 101–239, title VII, § 7734(a), Dec. 19, 1989, 103 Stat. 2403; Pub. L. 108–357, title VIII, § 818(a), Oct. 22, 2004, 118 Stat. 1584; Pub. L. 115–141, div. U, title IV, § 401(a)(314), Mar. 23, 2018, 132 Stat. 1199.)
§ 6701. Penalties for aiding and abetting understatement of tax liability
(a) Imposition of penalty
Any person—
(1) who aids or assists in, procures, or advises with respect to, the preparation or presentation of any portion of a return, affidavit, claim, or other document,
(2) who knows (or has reason to believe) that such portion will be used in connection with any material matter arising under the internal revenue laws, and
(3) who knows that such portion (if so used) would result in an understatement of the liability for tax of another person,
shall pay a penalty with respect to each such document in the amount determined under subsection (b).
(b) Amount of penalty
(1) In general
(2) Corporations
(3) Only 1 penalty per person per period
(c) Activities of subordinates
(1) In general
For purposes of subsection (a), the term “procures” includes—
(A) ordering (or otherwise causing) a subordinate to do an act, and
(B) knowing of, and not attempting to prevent, participation by a subordinate in an act.
(2) Subordinate
(d) Taxpayer not required to have knowledge
(e) Certain actions not treated as aid or assistance
(f) Penalty in addition to other penalties
(1) In general
(2) Coordination with return preparer penalties
(3) Coordination with section 6700
(Added Pub. L. 97–248, title III, § 324(a), Sept. 3, 1982, 96 Stat. 615; amended Pub. L. 101–239, title VII, § 7735(a), (b), Dec. 19, 1989, 103 Stat. 2403.)
§ 6702. Frivolous tax submissions
(a) Civil penalty for frivolous tax returnsA person shall pay a penalty of $5,000 if—
(1) such person files what purports to be a return of a tax imposed by this title but which—
(A) does not contain information on which the substantial correctness of the self-assessment may be judged, or
(B) contains information that on its face indicates that the self-assessment is substantially incorrect, and
(2) the conduct referred to in paragraph (1)—
(A) is based on a position which the Secretary has identified as frivolous under subsection (c), or
(B) reflects a desire to delay or impede the administration of Federal tax laws.
(b) Civil penalty for specified frivolous submissions
(1) Imposition of penalty
(2) Specified frivolous submissionFor purposes of this section—
(A) Specified frivolous submissionThe term “specified frivolous submission” means a specified submission if any portion of such submission—
(i) is based on a position which the Secretary has identified as frivolous under subsection (c), or
(ii) reflects a desire to delay or impede the administration of Federal tax laws.
(B) Specified submissionThe term “specified submission” means—
(i) a request for a hearing under—(I) section 6320 (relating to notice and opportunity for hearing upon filing of notice of lien), or(II) section 6330 (relating to notice and opportunity for hearing before levy), and
(ii) an application under—(I) section 6159 (relating to agreements for payment of tax liability in installments),(II) section 7122 (relating to compromises), or(III) section 7811 (relating to taxpayer assistance orders).
(3) Opportunity to withdraw submission
(c) Listing of frivolous positions
(d) Reduction of penalty
(e) Penalties in addition to other penalties
(f) Partnership adjustments
(Added Pub. L. 97–248, title III, § 326(a), Sept. 3, 1982, 96 Stat. 617; amended Pub. L. 109–432, div. A, title IV, § 407(a), Dec. 20, 2006, 120 Stat. 2960; Pub. L. 115–141, div. U, title II, § 206(n)(4), Mar. 23, 2018, 132 Stat. 1182.)
§ 6703. Rules applicable to penalties under sections 6700, 6701, and 6702
(a) Burden of proof
(b) Deficiency procedures not to apply
(c) Extension of period of collection where person pays 15 percent of penalty
(1) In general
(2) Person must bring suit in district court to determine his liability for penalty
(3) Suspension of running of period of limitations on collection
(Added Pub. L. 97–248, title III, § 322(a), Sept. 3, 1982, 96 Stat. 612; amended Pub. L. 101–239, title VII, §§ 7736(a), 7737(a), Dec. 19, 1989, 103 Stat. 2404.)
§ 6704. Failure to keep records necessary to meet reporting requirements under section 6047(d)
(a) Liability for penalty
Any person who—
(1) has a duty to report or may have a duty to report any information under section 6047(d), and
(2) fails to keep such records as may be required by regulations prescribed under section 6047(d) for the purpose of providing the necessary data base for either current reporting or future reporting,
shall pay a penalty for each calendar year for which there is any failure to keep such records.
(b) Amount of penalty
(1) In general
(2) Maximum amount
(c) Exceptions
(1) Reasonable cause
(2) Inability to correct previous failure
(3) Pre-1983 failures
(Added Pub. L. 97–248, title III, § 334(c)(1), Sept. 3, 1982, 96 Stat. 627; amended Pub. L. 99–514, title XVIII, § 1848(e)(1), Oct. 22, 1986, 100 Stat. 2857.)
§ 6705. Failure by broker to provide notice to payors
(a) In general
(b) Penalty in addition to other penalties
(Added Pub. L. 98–67, title I, § 104(c)(1), Aug. 5, 1983, 97 Stat. 379.)
§ 6706. Original issue discount information requirements
(a) Failure to show information on debt instrument
(b) Failure to furnish information to Secretary
(c) Deficiency procedures not to apply
(Added Pub. L. 98–369, div. A, title I, § 41(c)(1), July 18, 1984, 98 Stat. 555.)
§ 6707. Failure to furnish information regarding reportable transactions
(a) In general
If a person who is required to file a return under section 6111(a) with respect to any reportable transaction—
(1) fails to file such return on or before the date prescribed therefor, or
(2) files false or incomplete information with the Secretary with respect to such transaction,
such person shall pay a penalty with respect to such return in the amount determined under subsection (b).
(b) Amount of penalty
(1) In general
(2) Listed transactions
The penalty imposed under subsection (a) with respect to any listed transaction shall be an amount equal to the greater of—
(A) $200,000, or
(B) 50 percent of the gross income derived by such person with respect to aid, assistance, or advice which is provided with respect to the listed transaction before the date the return is filed under section 6111.
Subparagraph (B) shall be applied by substituting “75 percent” for “50 percent” in the case of an intentional failure or act described in subsection (a).
(c) Rescission authority
(d) Reportable and listed transactions
(Added Pub. L. 98–369, div. A, title I, § 141(b), July 18, 1984, 98 Stat. 680; amended Pub. L. 99–514, title XV, §§ 1532(a), 1533(a), Oct. 22, 1986, 100 Stat. 2750; Pub. L. 105–34, title X, § 1028(b), (d), Aug. 5, 1997, 111 Stat. 927, 928; Pub. L. 108–357, title VIII, § 816(a), Oct. 22, 2004, 118 Stat. 1583.)
§ 6707A. Penalty for failure to include reportable transaction information with return
(a) Imposition of penalty
(b) Amount of penalty
(1) In general
(2) Maximum penaltyThe amount of the penalty under subsection (a) with respect to any reportable transaction shall not exceed—
(A) in the case of a listed transaction, $200,000 ($100,000 in the case of a natural person), or
(B) in the case of any other reportable transaction, $50,000 ($10,000 in the case of a natural person).
(3) Minimum penalty
(c) DefinitionsFor purposes of this section:
(1) Reportable transaction
(2) Listed transaction
(d) Authority to rescind penalty
(1) In generalThe Commissioner of Internal Revenue may rescind all or any portion of any penalty imposed by this section with respect to any violation if—
(A) the violation is with respect to a reportable transaction other than a listed transaction, and
(B) rescinding the penalty would promote compliance with the requirements of this title and effective tax administration.
(2) No judicial appeal
(3) RecordsIf a penalty is rescinded under paragraph (1), the Commissioner shall place in the file in the Office of the Commissioner the opinion of the Commissioner with respect to the determination, including—
(A) a statement of the facts and circumstances relating to the violation,
(B) the reasons for the rescission, and
(C) the amount of the penalty rescinded.
(e) Penalty reported to SECIn the case of a person—
(1) which is required to file periodic reports under section 13 or 15(d) of the Securities Exchange Act of 1934 or is required to be consolidated with another person for purposes of such reports, and
(2) which—
(A) is required to pay a penalty under this section with respect to a listed transaction,
(B) is required to pay a penalty under section 6662A with respect to any reportable transaction at a rate prescribed under section 6662A(c), or
(C) is required to pay a penalty under section 6662(h) with respect to any reportable transaction and would (but for section 6662A(e)(2)(B)) have been subject to penalty under section 6662A at a rate prescribed under section 6662A(c),
the requirement to pay such penalty shall be disclosed in such reports filed by such person for such periods as the Secretary shall specify. Failure to make a disclosure in accordance with the preceding sentence shall be treated as a failure to which the penalty under subsection (b)(2) applies.
(f) Coordination with other penalties
(Added Pub. L. 108–357, title VIII, § 811(a), Oct. 22, 2004, 118 Stat. 1575; amended Pub. L. 110–172, § 11(a)(41), Dec. 29, 2007, 121 Stat. 2488; Pub. L. 111–240, title II, § 2041(a), Sept. 27, 2010, 124 Stat. 2560.)
§ 6708. Failure to maintain lists of advisees with respect to reportable transactions
(a) Imposition of penalty
(1) In general
(2) Reasonable cause exception
(b) Penalty in addition to other penalties
(Added Pub. L. 98–369, div. A, title I, § 142(b), July 18, 1984, 98 Stat. 682; amended Pub. L. 99–514, title XV, § 1534(a), Oct. 22, 1986, 100 Stat. 2750; Pub. L. 108–357, title VIII, §§ 815(b)(5)(A), 817(a), Oct. 22, 2004, 118 Stat. 1583, 1584.)
§ 6709. Penalties with respect to mortgage credit certificates
(a) Negligence
If—
(1) any person makes a material misstatement in any verified written statement made under penalties of perjury with respect to the issuance of a mortgage credit certificate, and
(2) such misstatement is due to the negligence of such person,
such person shall pay a penalty of $1,000 for each mortgage credit certificate with respect to which such a misstatement was made.
(b) Fraud
(c) Reports
(d) Mortgage credit certificate
(Added Pub. L. 98–369, div. A, title VI, § 612(d)(1), July 18, 1984, 98 Stat. 912, § 6708; renumbered § 6709, Pub. L. 99–514, title XVIII, § 1862(d)(2), Oct. 22, 1986, 100 Stat. 2884.)
§ 6710. Failure to disclose that contributions are nondeductible
(a) Imposition of penalty
(b) Reasonable cause exception
(c) $10,000 limitation not to apply where intentional disregardIf any failure to which subsection (a) applies is due to intentional disregard of the requirement of section 6113—
(1) the penalty under subsection (a) for the day on which such failure occurred shall be the greater of—
(A) $1,000, or
(B) 50 percent of the aggregate cost of the solicitations which occurred on such day and with respect to which there was such a failure,
(2) the $10,000 limitation of subsection (a) shall not apply to any penalty under subsection (a) for the day on which such failure occurred, and
(3) such penalty shall not be taken into account in applying such limitation to other penalties under subsection (a).
(d) Day on which failure occursFor purposes of this section, any failure to meet the requirement of section 6113 with respect to a solicitation—
(1) by television or radio, shall be treated as occurring when the solicitation was telecast or broadcast,
(2) by mail, shall be treated as occurring when the solicitation was mailed,
(3) not by mail but in written or printed form, shall be treated as occurring when the solicitation was distributed, or
(4) by telephone, shall be treated as occurring when the solicitation was made.
(Added Pub. L. 100–203, title X, § 10701(b), Dec. 22, 1987, 101 Stat. 1330–458.)
§ 6711. Failure by tax-exempt organization to disclose that certain information or service available from Federal Government
(a) Imposition of penalty
If—
(1) a tax-exempt organization offers to sell (or solicits money for) specific information or a routine service for any individual which could be readily obtained by such individual free of charge (or for a nominal charge) from an agency of the Federal Government,
(2) the tax-exempt organization, when making such offer or solicitation, fails to make an express statement (in a conspicuous and easily recognizable format) that the information or service can be so obtained, and
(3) such failure is due to intentional disregard of the requirements of this subsection,
such organization shall pay a penalty determined under subsection (b) for each day on which such a failure occurred.
(b) Amount of penalty
The penalty under subsection (a) for any day on which a failure referred to in such subsection occurred shall be the greater of—
(1) $1,000, or
(2) 50 percent of the aggregate cost of the offers and solicitations referred to in subsection (a)(1) which occurred on such day and with respect to which there was such a failure.
(c) Definitions
For purposes of this section—
(1) Tax-exempt organization
The term “tax-exempt organization” means any organization which—
(A) is described in subsection (c) or (d) of section 501 and exempt from taxation under section 501(a), or
(B) is a political organization (as defined in section 527(e)).
(2) Day on which failure occurs
(Added Pub. L. 100–203, title X, § 10705(a), Dec. 22, 1987, 101 Stat. 1330–463.)
§ 6712. Failure to disclose treaty-based return positions
(a) General rule
(b) Authority to waive
(c) Penalty in addition to other penalties
(Added Pub. L. 100–647, title I, § 1012(aa)(5)(B), Nov. 10, 1988, 102 Stat. 3532.)
§ 6713. Disclosure or use of information by preparers of returns
(a) Imposition of penalty
If any person who is engaged in the business of preparing, or providing services in connection with the preparation of, returns of tax imposed by chapter 1, or any person who for compensation prepares any such return for any other person, and who—
(1) discloses any information furnished to him for, or in connection with, the preparation of any such return, or
(2) uses any such information for any purpose other than to prepare, or assist in preparing, any such return,
shall pay a penalty of $250 for each such disclosure or use, but the total amount imposed under this subsection on such a person for any calendar year shall not exceed $10,000.
(b) Enhanced penalty for improper use or disclosure relating to identity theft
(1) In general
In the case of a disclosure or use described in subsection (a) that is made in connection with a crime relating to the misappropriation of another person’s taxpayer identity (as defined in section 6103(b)(6)), whether or not such crime involves any tax filing, subsection (a) shall be applied—
(A) by substituting “$1,000” for “$250”, and
(B) by substituting “$50,000” for “$10,000”.
(2) Separate application of total penalty limitation
(c) Exceptions
(d) Deficiency procedures not to apply
(Added Pub. L. 100–647, title VI, § 6242(a), Nov. 10, 1988, 102 Stat. 3749, § 6712; renumbered § 6713, Pub. L. 101–239, title VII, § 7816(v)(1), Dec. 19, 1989, 103 Stat. 2423; amended Pub. L. 116–25, title II, § 2009(a), July 1, 2019, 133 Stat. 1007.)
§ 6714. Failure to meet disclosure requirements applicable to quid pro quo contributions
(a) Imposition of penalty
(b) Reasonable cause exception
(Added Pub. L. 103–66, title XIII, § 13173(b), Aug. 10, 1993, 107 Stat. 456.)
§ 6715. Dyed fuel sold for use or used in taxable use, etc.
(a) Imposition of penalty
If—
(1) any dyed fuel is sold or held for sale by any person for any use which such person knows or has reason to know is not a nontaxable use of such fuel,
(2) any dyed fuel is held for use or used by any person for a use other than a nontaxable use and such person knew, or had reason to know, that such fuel was so dyed,
(3) any person willfully alters, chemically or otherwise, or attempts to so alter, the strength or composition of any dye or marking done pursuant to section 4082 in any dyed fuel, or
(4) any person who has knowledge that a dyed fuel which has been altered as described in paragraph (3) sells or holds for sale such fuel for any use which the person knows or has reason to know is not a nontaxable use of such fuel,
then such person shall pay a penalty in addition to the tax (if any).
(b) Amount of penalty
(1) In general
Except as provided in paragraph (2), the amount of the penalty under subsection (a) on each act shall be the greater of—
(A) $1,000, or
(B) $10 for each gallon of the dyed fuel involved.
(2) Multiple violations
(c) Definitions
For purposes of this section—
(1) Dyed fuel
(2) Nontaxable use
(d) Joint and several liability of certain officers and employees
(e) No administrative appeal for third and subsequent violations
In the case of any person who is found to be subject to the penalty under this section after a chemical analysis of such fuel and who has been penalized under this section at least twice after the date of the enactment of this subsection, no administrative appeal or review shall be allowed with respect to such finding except in the case of a claim regarding—
(1) fraud or mistake in the chemical analysis, or
(2) mathematical calculation of the amount of the penalty.
(Added Pub. L. 103–66, title XIII, § 13242(b)(1), Aug. 10, 1993, 107 Stat. 520, § 6714; renumbered § 6715, Pub. L. 104–188, title I, § 1703(n)(9)(A), Aug. 20, 1996, 110 Stat. 1877; amended Pub. L. 105–34, title X, § 1032(e)(11), Aug. 5, 1997, 111 Stat. 935; Pub. L. 108–357, title VIII, §§ 855(a), 856(a), (b), Oct. 22, 2004, 118 Stat. 1616, 1617.)
§ 6715A. Tampering with or failing to maintain security requirements for mechanical dye injection systems
(a) Imposition of penalty
(1) Tampering
(2) Failure to maintain security requirements
(b) Amount of penaltyThe amount of the penalty under subsection (a) shall be—
(1) for each violation described in paragraph (1), the greater of—
(A) $25,000, or
(B) $10 for each gallon of fuel involved, and
(2) for each—
(A) failure to maintain security standards described in paragraph (2), $1,000, and
(B) failure to correct a violation described in paragraph (2), $1,000 per day for each day after which such violation was discovered or such person should have reasonably known of such violation.
(c) Joint and several liability
(1) In general
(2) Affiliated groups
(Added Pub. L. 108–357, title VIII, § 854(c)(1), Oct. 22, 2004, 118 Stat. 1615.)
[§ 6716. Repealed. Pub. L. 111–312, title III, § 301(a), Dec. 17, 2010, 124 Stat. 3300]
§ 6717. Refusal of entry
(a) In general
(b) Joint and several liability
(1) In general
(2) Affiliated groups
(c) Reasonable cause exception
(Added Pub. L. 108–357, title VIII, § 859(a), Oct. 22, 2004, 118 Stat. 1617.)
§ 6718. Failure to display tax registration on vessels
(a) Failure to display registration
(b) Multiple violations
(c) Reasonable cause exception
(Added and amended Pub. L. 108–357, title VIII, §§ 861(b)(1), 862(b), Oct. 22, 2004, 118 Stat. 1618, 1619.)
§ 6719. Failure to register or reregister
(a) Failure to register or reregister
(b) Amount of penalty
The amount of the penalty under subsection (a) shall be—
(1) $10,000 for each initial failure to register or reregister, and
(2) $1,000 for each day thereafter such person fails to register or reregister.
(c) Reasonable cause exception
(Added Pub. L. 108–357, title VIII, § 863(c)(1), Oct. 22, 2004, 118 Stat. 1620; amended Pub. L. 109–59, title XI, § 11164(b)(1), Aug. 10, 2005, 119 Stat. 1975.)
§ 6720. Fraudulent acknowledgments with respect to donations of motor vehicles, boats, and airplanesAny donee organization required under section 170(f)(12)(A) to furnish a contemporaneous written acknowledgment to a donor which knowingly furnishes a false or fraudulent acknowledgment, or which knowingly fails to furnish such acknowledgment in the manner, at the time, and showing the information required under section 170(f)(12), or regulations prescribed thereunder, shall for each such act, or for each such failure, be subject to a penalty equal to—
(1) in the case of an acknowledgment with respect to a qualified vehicle to which section 170(f)(12)(A)(ii) applies, the greater of—
(A) the product of the highest rate of tax specified in section 1 and the sales price stated on the acknowledgment, or
(B) the gross proceeds from the sale of such vehicle, and
(2) in the case of an acknowledgment with respect to any other qualified vehicle to which section 170(f)(12) applies, the greater of—
(A) the product of the highest rate of tax specified in section 1 and the claimed value of the vehicle, or
(B) $5,000.
(Added Pub. L. 108–357, title VIII, § 884(b)(1), Oct. 22, 2004, 118 Stat. 1634.)
§ 6720A. Penalty with respect to certain adulterated fuels
(a) In general
(b) Penalty in the case of retailers
(Added Pub. L. 109–59, title XI, § 11167(a), Aug. 10, 2005, 119 Stat. 1977.)
§ 6720B. Fraudulent identification of exempt use property
In addition to any criminal penalty provided by law, any person who identifies applicable property (as defined in section 170(e)(7)(C)) as having a use which is related to a purpose or function constituting the basis for the donee’s exemption under section 501 and who knows that such property is not intended for such a use shall pay a penalty of $10,000.
(Added Pub. L. 109–280, title XII, § 1215(c)(1), Aug. 17, 2006, 120 Stat. 1079.)
§ 6720C. Penalty for failure to notify health plan of cessation of eligibility for continuation coverage premium assistance
(a) In general
(b) Intentional failure
In the case of any such failure that is fraudulent, such person shall pay a penalty equal to the greater of—
(1) $250, or
(2) 110 percent of the premium assistance provided under section 9501(a)(1)(A) of the American Rescue Plan Act of 2021 after termination of eligibility under such section.
(c) Reasonable cause exception
(Added Pub. L. 117–2, title IX, § 9501(b)(2)(A), Mar. 11, 2021, 135 Stat. 137.)