USC Subchapter B

USC Subchapter B
in effect

26 U.S.C. § 6721 Failure to file correct information returns

(a) Imposition of penalty(1) In generalIn the case of a failure described in paragraph (2) by any person with respect to an information return, such person shall pay a penalty of $250 for each return with respect to which such a failure occurs, but the total amount imposed on such person for all such failures during any calendar year shall not exceed $3,000,000. (2) Failures subject to penaltyFor purposes of paragraph (1), the failures described in this paragraph are—(A) any failure to file an information return with the Secretary on or before the required filing date, and (B) any failure to include all of the information required to be shown on the return or the inclusion of incorrect information. (b) Reduction where correction in specified period(1) Correction within 30 daysIf any failure described in subsection (a)(2) is corrected on or before the day 30 days after the required filing date—(A) the penalty imposed by subsection (a) shall be $50 in lieu of $250, and (B) the total amount imposed on the person for all such failures during any calendar year which are so corrected shall not exceed $500,000. (2) Failures corrected on or before August 1If any failure described in subsection (a)(2) is corrected after the 30th day referred to in paragraph (1) but on or before August 1 of the calendar year in which the required filing date occurs—(A) the penalty imposed by subsection (a) shall be $100 in lieu of $250, and (B) the total amount imposed on the person for all such failures during the calendar year which are so corrected shall not exceed $1,500,000. (c) Exceptions for certain de minimis failures(1) Exception for de minimis failure to include all required informationIf—(A) an information return is filed with the Secretary, (B) there is a failure described in subsection (a)(2)(B) (determined after the application of section 6724(a)) with respect to such return, and (C) such failure is corrected on or before August 1 of the calendar year in which the required filing date occurs, for purposes of this section, such return shall be treated as having been filed with all of the correct required information. (2) LimitationThe number of information returns to which paragraph (1) applies for any calendar year shall not exceed the greater of—(A) 10, or (B) one-half of 1 percent of the total number of information returns required to be filed by the person during the calendar year. (3) Safe harbor for certain de minimis errors(A) In generalIf, with respect to an information return filed with the Secretary—(i) there are 1 or more failures described in subsection (a)(2)(B) relating to an incorrect dollar amount, (ii) no single amount in error differs from the correct amount by more than $100, and (iii) no single amount reported for tax withheld on the information return differs from the correct amount by more than $25, then no correction shall be required and, for purposes of this section, such return shall be treated as having been filed with all of the correct required information. (B) ExceptionSubparagraph (A) shall not apply with respect to any incorrect dollar amount to the extent that such error relates to an amount with respect to which an election is made under section 6722(c)(3)(B). (C) Regulatory authorityThe Secretary may issue regulations to prevent the abuse of the safe harbor under this paragraph, including regulations providing that this paragraph shall not apply to the extent necessary to prevent any such abuse. (d) Lower limitations for persons with gross receipts of not more than $5,000,000(1) In generalIf any person meets the gross receipts test of paragraph (2) with respect to any calendar year, with respect to failures during such calendar year—(A) subsection (a)(1) shall be applied by substituting “$1,000,000” for “$3,000,000”, (B) subsection (b)(1)(B) shall be applied by substituting “$175,000” for “$500,000”, and (C) subsection (b)(2)(B) shall be applied by substituting “$500,000” for “$1,500,000”. (2) Gross receipts test(A) In generalA person meets the gross receipts test of this paragraph for any calendar year if the average annual gross receipts of such person for the most recent 3 taxable years ending before such calendar year do not exceed $5,000,000. (B) Certain rules made applicableFor purposes of subparagraph (A), the rules of paragraphs (2) and (3) of section 448(c) shall apply. (e) Penalty in case of intentional disregardIf 1 or more failures described in subsection (a)(2) are due to intentional disregard of the filing requirement (or the correct information reporting requirement), then, with respect to each such failure—(1) subsections (b), (c), and (d) shall not apply, (2) the penalty imposed under subsection (a) shall be $500, or, if greater—(A) in the case of a return other than a return required under section 6045(a), 6041A(b), 6050H, 6050I, 6050J, 6050K, or 6050L, 10 percent of the aggregate amount of the items required to be reported correctly, (B) in the case of a return required to be filed by section 6045(a), 6050K, or 6050L, 5 percent of the aggregate amount of the items required to be reported correctly, (C) in the case of a return required to be filed under section 6050I(a) with respect to any transaction (or related transactions), the greater of—(i) $25,000, or (ii) the amount of cash (within the meaning of section 6050I(d)) received in such transaction (or related transactions) to the extent the amount of such cash does not exceed $100,000, or (D) in the case of a return required to be filed under section 6050V, 10 percent of the value of the benefit of any contract with respect to which information is required to be included on the return, and (3) in the case of any penalty determined under paragraph (2)—(A) the $3,000,000 limitation under subsection (a) shall not apply, and (B) such penalty shall not be taken into account in applying such limitation (or any similar limitation under subsection (b)) to penalties not determined under paragraph (2). (f) Adjustment for inflation(1) In generalIn the case of any failure relating to a return required to be filed in a calendar year beginning after 2014, each of the dollar amounts under subsections (a), (b), (d) (other than paragraph (2)(A) thereof), and (e) shall be increased by an amount equal to such dollar amount multiplied by the cost-of-living adjustment determined under section 1(f)(3) for the calendar year determined by substituting “calendar year 2011” for “calendar year 2016” in subparagraph (A)(ii) thereof. (2) RoundingIf any amount adjusted under paragraph (1)—(A) is not less than $75,000 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 $10, such amount shall be rounded to the next lowest multiple of $10.

26 U.S.C. § 6722 Failure to furnish correct payee statements

(a) Imposition of penalty(1) General ruleIn the case of each failure described in paragraph (2) by any person with respect to a payee statement, such person shall pay a penalty of $250 for each statement with respect to which such a failure occurs, but the total amount imposed on such person for all such failures during any calendar year shall not exceed $3,000,000. (2) Failures subject to penaltyFor purposes of paragraph (1), the failures described in this paragraph are—(A) any failure to furnish a payee statement on or before the date prescribed therefor to the person to whom such statement is required to be furnished, and (B) any failure to include all of the information required to be shown on a payee statement or the inclusion of incorrect information. (b) Reduction where correction in specified period(1) Correction within 30 daysIf any failure described in subsection (a)(2) is corrected on or before the day 30 days after the date prescribed for furnishing such statement—(A) the penalty imposed by subsection (a) shall be $50 in lieu of $250, and (B) the total amount imposed on the person for all such failures during any calendar year which are so corrected shall not exceed $500,000. (2) Failures corrected on or before August 1If any failure described in subsection (a)(2) is corrected after the 30th day referred to in paragraph (1) but on or before August 1 of the calendar year in which the date prescribed for furnishing such statement occurs—(A) the penalty imposed by subsection (a) shall be $100 in lieu of $250, and (B) the total amount imposed on the person for all such failures during the calendar year which are so corrected shall not exceed $1,500,000. (c) Exception for de minimis failures(1) In generalIf—(A) a payee statement is furnished to the person to whom such statement is required to be furnished, (B) there is a failure described in subsection (a)(2)(B) (determined after the application of section 6724(a)) with respect to such statement, and (C) such failure is corrected on or before August 1 of the calendar year in which the date prescribed for furnishing such statement occurs, for purposes of this section, such statement shall be treated as having been furnished with all of the correct required information. (2) LimitationThe number of payee statements to which paragraph (1) applies for any calendar year shall not exceed the greater of—(A) 10, or (B) one-half of 1 percent of the total number of payee statements required to be furnished by the person during the calendar year. (3) Safe harbor for certain de minimis errors(A) In generalIf, with respect to any payee statement—(i) there are 1 or more failures described in subsection (a)(2)(B) relating to an incorrect dollar amount, (ii) no single amount in error differs from the correct amount by more than $100, and (iii) no single amount reported for tax withheld on the payee statement differs from the correct amount by more than $25, then no correction shall be required and, for purposes of this section, such statement shall be treated as having been furnished with all of the correct required information. (B) ExceptionSubparagraph (A) shall not apply to any payee statement if the person to whom such statement is required to be furnished makes an election (at such time and in such manner as the Secretary may prescribe) that subparagraph (A) not apply with respect to such statement. (C) Regulatory authorityThe Secretary may issue regulations to prevent the abuse of the safe harbor under this paragraph, including regulations providing that this paragraph shall not apply to the extent necessary to prevent any such abuse. (d) Lower limitations for persons with gross receipts of not more than $5,000,000(1) In generalIf any person meets the gross receipts test of paragraph (2) with respect to any calendar year, with respect to failures during such calendar year—(A) subsection (a)(1) shall be applied by substituting “$1,000,000” for “$3,000,000”, (B) subsection (b)(1)(B) shall be applied by substituting “$175,000” for “$500,000”, and (C) subsection (b)(2)(B) shall be applied by substituting “$500,000” for “$1,500,000”. (2) Gross receipts testA person meets the gross receipts test of this paragraph if such person meets the gross receipts test of section 6721(d)(2). (e) Penalty in case of intentional disregardIf 1 or more failures to which subsection (a) applies are due to intentional disregard of the requirement to furnish a payee statement (or the correct information reporting requirement), then, with respect to each such failure—(1) subsections (b), (c), and (d) shall not apply, (2) the penalty imposed under subsection (a)(1) shall be $500, or, if greater—(A) in the case of a payee statement other than a statement required under section 6045(b), 6041A(e) (in respect of a return required under section 6041A(b)), 6050H(d), 6050J(e), 6050K(b), or 6050L(c), 10 percent of the aggregate amount of the items required to be reported correctly, or (B) in the case of a payee statement required under section 6045(b), 6050K(b), or 6050L(c), 5 percent of the aggregate amount of the items required to be reported correctly, and (3) in the case of any penalty determined under paragraph (2)—(A) the $3,000,000 limitation under subsection (a) shall not apply, and (B) such penalty shall not be taken into account in applying such limitation to penalties not determined under paragraph (2). (f) Adjustment for inflation(1) In generalIn the case of any failure relating to a statement required to be furnished in a calendar year beginning after 2014, each of the dollar amounts under subsections (a), (b), (d)(1), and (e) shall be increased by an amount equal to such dollar amount multiplied by the cost-of-living adjustment determined under section 1(f)(3) for the calendar year determined by substituting “calendar year 2011” for “calendar year 2016” in subparagraph (A)(ii) thereof. (2) RoundingIf any amount adjusted under paragraph (1)—(A) is not less than $75,000 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 $10, such amount shall be rounded to the next lowest multiple of $10.

26 U.S.C. § 6723 Failure to comply with other information reporting requirements

In the case of a failure by any person to comply with a specified information reporting requirement on or before the time prescribed therefor, such person shall pay a penalty of $50 for each such failure, but the total amount imposed on such person for all such failures during any calendar year shall not exceed $100,000.

26 U.S.C. § 6724 Waiver; definitions and special rules

(a) Reasonable cause waiverNo penalty shall be imposed under this part with respect to any failure if it is shown that such failure is due to reasonable cause and not to willful neglect. (b) Payment of penaltyAny penalty imposed by this part shall be paid on notice and demand by the Secretary and in the same manner as tax. (c) Special rule for failure to meet magnetic media requirementsNo penalty shall be imposed under section 6721 solely by reason of any failure to comply with the requirements of the regulations prescribed under section 6011(e)(2), except to the extent that such a failure occurs with respect to more than the applicable number (determined under section 6011(e)(5) with respect to the calendar year to which such returns relate) of information returns or with respect to a return described in section 6011(e)(4). (d) DefinitionsFor purposes of this part—(1) Information returnThe term “information return” means—(A) any statement of the amount of payments to another person required by—(i) section 6041(a) or (b) (relating to certain information at source), (ii) section 6042(a)(1) (relating to payments of dividends), (iii) section 6044(a)(1) (relating to payments of patronage dividends), (iv) section 6049(a) (relating to payments of interest), (v) section 6050A(a) (relating to reporting requirements of certain fishing boat operators), (vi) section 6050N(a) (relating to payments of royalties), (vii) section 6051(d) (relating to information returns with respect to income tax withheld), (viii) section 6050R (relating to returns relating to certain purchases of fish), or (ix) section 110(d) (relating to qualified lessee construction allowances for short-term leases), (B) any return required by—(i) section 6041A(a) or (b) (relating to returns of direct sellers), (ii) section 6043A(a) (relating to returns relating to taxable mergers and acquisitions), (iii) section 6045(a) or (d) (relating to returns of brokers), (iv) section 6045B(a) (relating to returns relating to actions affecting basis of specified securities), (v) section 6050H(a) or (h)(1) (relating to mortgage interest received in trade or business from individuals), (vi) section 6050I(a) or (g)(1) (relating to cash received in trade or business, etc.), (vii) section 6050J(a) (relating to foreclosures and abandonments of security), (viii) section 6050K(a) (relating to exchanges of certain partnership interests), (ix) section 6050L(a) (relating to returns relating to certain dispositions of donated property), (x) section 6050P (relating to returns relating to the cancellation of indebtedness by certain financial entities), (xi) section 6050Q (relating to certain long-term care benefits), (xii) section 6050S (relating to returns relating to payments for qualified tuition and related expenses), (xiii) section 6050T (relating to returns relating to credit for health insurance costs of eligible individuals), (xiv) section 6052(a) (relating to reporting payment of wages in the form of group-life insurance), (xv) section 6050V (relating to returns relating to applicable insurance contracts in which certain exempt organizations hold interests), (xvi) section 6053(c)(1) (relating to reporting with respect to certain tips), (xvii) subsection (b) or (e) of section 1060 (relating to reporting requirements of transferors and transferees in certain asset acquisitions), (xviii) section 4101(d) (relating to information reporting with respect to fuels taxes), (xix) subparagraph (C) of section 338(h)(10) (relating to information required to be furnished to the Secretary in case of elective recognition of gain or loss), (xx) section 264(f)(5)(A)(iv) (relating to reporting with respect to certain life insurance and annuity contracts), (xxi) section 6050U (relating to charges or payments for qualified long-term care insurance contracts under combined arrangements), (xxii) section 6039(a) (relating to returns required with respect to certain options), (xxiii) section 6050W (relating to returns to payments made in settlement of payment card transactions), (xxiv) section 6055 (relating to returns relating to information regarding health insurance coverage), (xxv) section 6056 (relating to returns relating to certain employers required to report on health insurance coverage), (xxvi) section 6050Y (relating to returns relating to certain life insurance contract transactions), (xxvii) section 6045A(d) (relating to returns for certain digital assets), (xxviii) section 6050Z (relating to reports relating to long-term care premium statements), or (xxix) section 6050AA(a) (relating to returns relating to applicable passenger vehicle loan interest received in trade or business from individuals), (C) any statement of the amount of payments to another person required to be made to the Secretary under—(i) section 408(i) (relating to reports with respect to individual retirement accounts or annuities), or (ii) section 6047(d) (relating to reports by employers, plan administrators, etc.), and (D) any statement required to be filed with the Secretary under section 6035. Such term also includes any form, statement, or schedule required to be filed with the Secretary under chapter 4 or with respect to any amount from which tax was required to be deducted and withheld under chapter 3 (or from which tax would be required to be so deducted and withheld but for an exemption under this title or any treaty obligation of the United States). (2) Payee statementThe term “payee statement” means any statement required to be furnished under—(A) section 6031(b) or (c), 6034A, or 6037(b) (relating to statements furnished by certain pass-thru entities), (B) section 6039(b) (relating to information required in connection with certain options), (C) section 6041(d) (relating to information at source), (D) section 6041A(e) (relating to returns regarding payments of remuneration for services and direct sales), (E) section 6042(c) (relating to returns regarding payments of dividends and corporate earnings and profits), (F) subsections (b) and (d) of section 6043A (relating to returns relating to taxable mergers and acquisitions), (G) section 6044(e) (relating to returns regarding payments of patronage dividends), (H) section 6045(b) or (d) (relating to returns of brokers), (I) section 6045A (relating to information required in connection with transfers of covered securities to brokers), (J) subsections (c) and (e) of section 6045B (relating to returns relating to actions affecting basis of specified securities), (K) section 6049(c) (relating to returns regarding payments of interest), (L) section 6050A(b) (relating to reporting requirements of certain fishing boat operators), (M) section 6050H(d) or (h)(2) (relating to returns relating to mortgage interest received in trade or business from individuals), (N) section 6050I(e) or paragraph (4) or (5) of section 6050I(g) (relating to cash received in trade or business, etc.), (O) section 6050J(e) (relating to returns relating to foreclosures and abandonments of security), (P) section 6050K(b) (relating to returns relating to exchanges of certain partnership interests), (Q) section 6050L(c) (relating to returns relating to certain dispositions of donated property), (R) section 6050N(b) (relating to returns regarding payments of royalties), (S) section 6050P(d) (relating to returns relating to the cancellation of indebtedness by certain financial entities), (T) section 6050Q(b) (relating to certain long-term care benefits), (U) section 6050R(c) (relating to returns relating to certain purchases of fish), (V) section 6051 (relating to receipts for employees), (W) section 6052(b) (relating to returns regarding payment of wages in the form of group-term life insurance), (X) section 6053(b) or (c) (relating to reports of tips), (Y) section 6048(b)(1)(B) (relating to foreign trust reporting requirements), (Z) section 408(i) (relating to reports with respect to individual retirement plans) to any person other than the Secretary with respect to the amount of payments made to such person, (AA) section 6047(d) (relating to reports by plan administrators) to any person other than the Secretary with respect to the amount of payments made to such person, (BB) section 6050S(d) (relating to returns relating to qualified tuition and related expenses), (CC) section 264(f)(5)(A)(iv) (relating to reporting with respect to certain life insurance and annuity contracts), (DD) section 6050T (relating to returns relating to credit for health insurance costs of eligible individuals), (EE) section 6050U (relating to charges or payments for qualified long-term care insurance contracts under combined arrangements), (FF) section 6050W(f) (relating to returns relating to payments made in settlement of payment card transactions), (GG) section 6055(c) (relating to statements relating to information regarding health insurance coverage), (HH) section 6056(c) (relating to statements relating to certain employers required to report on health insurance coverage), (II) section 6035 (other than a statement described in paragraph (1)(D)), (JJ) section 6226(a)(2) (relating to statements relating to alternative to payment of imputed underpayment by partnership) or under any other provision of this title which provides for the application of rules similar to such section, (KK) subsection (a)(2), (b)(2), or (c)(2) of section 6050Y (relating to returns relating to certain life insurance contract transactions), (LL) section 6050Z (relating to reports relating to long-term care premium statements), (MM) section 6050AA(c) (relating to statements relating to applicable passenger vehicle loan interest received in trade or business from individuals), (NN) section 6039K(c) (relating to disposition of qualified opportunity fund investments), or (OO) section 6039L (relating to information required from certain qualified opportunity zone businesses and qualified rural opportunity zone businesses). Such term also includes any form, statement, or schedule required to be furnished to the recipient of any amount from which tax was required to be deducted and withheld under chapter 3 or 4 (or from which tax would be required to be so deducted and withheld but for an exemption under this title or any treaty obligation of the United States). (3) Specified information reporting requirementThe term “specified information reporting requirement” means—(A) the notice required by section 6050K(c)(1) (relating to requirement that transferor notify partnership of exchange), (B) any requirement contained in the regulations prescribed under section 6109 that a person—(i) include his TIN on any return, statement, or other document (other than an information return or payee statement), (ii) furnish his TIN to another person, or (iii) include on any return, statement, or other document (other than an information return or payee statement) made with respect to another person the TIN of such person,11 So in original. Probably should be followed by “and”. (C) any requirement under section 6109(h) that—(i) a person include on his return the name, address, and TIN of another person, or (ii) a person furnish his TIN to another person. (4) Required filing dateThe term “required filing date” means the date prescribed for filing an information return with the Secretary (determined with regard to any extension of time for filing). (e) Special rule for certain partnership returnsIf any partnership return under section 6031(a) is required under section 6011(e) to be filed on magnetic media or in other machine-readable form, for purposes of this part, each schedule required to be included with such return with respect to each partner shall be treated as a separate information return. (f) Special rule for returns of educational institutions related to higher education tuition and related expensesNo penalty shall be imposed under section 6721 or 6722 solely by reason of failing to provide the TIN of an individual on a return or statement required by section 6050S(a)(1) if the eligible educational institution required to make such return contemporaneously makes a true and accurate certification under penalty of perjury (and in such form and manner as may be prescribed by the Secretary) that it has complied with standards promulgated by the Secretary for obtaining such individual’s TIN. (g) Special rule for reporting certain additional taxesNo penalty shall be imposed under section 6721 or 6722 if—(1) a person makes a return or report under section 6047(d) or 408(i) with respect to any distribution, (2) such distribution is made following a rollover, transfer, or exchange described in section 72(t)(4)(C) or section 72(q)(3)(C), (3) in making such return or report the person relies upon a certification provided by the taxpayer that the distributions satisfy the requirements of section 72(t)(4)(C)(iii) or section 72(q)(3)(B)(iii), as applicable, and (4) such person does not have actual knowledge that the distributions do not satisfy such requirements.

26 U.S.C. § 6725 Failure to report information under section 4101

(a) In generalIn the case of each failure described in subsection (b) by any person with respect to a vessel or facility, such person shall pay a penalty of $10,000 in addition to the tax (if any). (b) Failures subject to penaltyFor purposes of subsection (a), the failures described in this subsection are—(1) any failure to make a report under section 4101(d) on or before the date prescribed therefor, and (2) any failure to include all of the information required to be shown on such report or the inclusion of incorrect information. (c) Reasonable cause exceptionNo penalty shall be imposed under this section with respect to any failure if it is shown that such failure is due to reasonable cause.

26 U.S.C. § 6726 Failure to comply with information reporting requirements relating to qualified opportunity funds and qualified rural opportunity funds

(a) In generalIf any person required to file a return under section 6039K fails to file a complete and correct return under such section in the time and in the manner prescribed therefor, such person shall pay a penalty of $500 for each day during which such failure continues. (b) Limitation(1) In generalThe maximum penalty under this section on failures with respect to any 1 return shall not exceed $10,000. (2) Large qualified opportunity fundsIn the case of any failure described in subsection (a) with respect to a fund the gross assets of which (determined on the last day of the taxable year) are in excess of $10,000,000, paragraph (1) shall be applied by substituting “$50,000” for “$10,000”. (c) Penalty in cases of intentional disregardIf a failure described in subsection (a) is due to intentional disregard, then—(1) subsection (a) shall be applied by substituting “$2,500” for “$500”, (2) subsection (b)(1) shall be applied by substituting “$50,000” for “$10,000”, and (3) subsection (b)(2) shall be applied by substituting “$250,000” for “$50,000”. (d) Inflation adjustment(1) In generalIn the case of any failure relating to a return required to be filed in a calendar year beginning after 2025, each of the dollar amounts in subsections (a), (b), and (c) shall be increased by an amount equal to—(A) such dollar amount, multiplied by (B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year determined by substituting “calendar year 2024” for “calendar year 2016” in subparagraph (A)(ii) thereof. (2) Rounding(A) In generalIf the $500 dollar amount in subsection (a) and (c)(1) or the $2,500 amount in subsection (c)(1), after being increased under paragraph (1), is not a multiple of $10, such dollar amount shall be rounded to the next lowest multiple of $10. (B) Asset thresholdIf the $10,000,000 dollar amount in subsection (b)(2), after being increased under paragraph (1), is not a multiple of $10,000, such dollar amount shall be rounded to the next lowest multiple of $10,000. (C) Other dollar amountsIf any dollar amount in subsection (b) or (c) (other than any amount to which subparagraph (A) or (B) applies), after being increased under paragraph (1), is not a multiple of $1,000, such dollar amount shall be rounded to the next lowest multiple of $1,000.

26 U.S.C. § 6671 Rules for application of assessable penalties

(a) Penalty assessed as taxThe penalties and liabilities provided by this subchapter shall be paid upon notice and demand by the Secretary, and shall be assessed and collected in the same manner as taxes. Except as otherwise provided, any reference in this title to “tax” imposed by this title shall be deemed also to refer to the penalties and liabilities provided by this subchapter. (b) Person definedThe term “person”, as used in this subchapter, includes an officer or employee of a corporation, or a member or employee of a partnership, who as such officer, employee, or member is under a duty to perform the act in respect of which the violation occurs.

26 U.S.C. § 6672 Failure to collect and pay over tax, or attempt to evade or defeat tax

(a) General ruleAny person required to collect, truthfully account for, and pay over any tax imposed by this title who willfully fails to collect such tax, or truthfully account for and pay over such tax, or willfully attempts in any manner to evade or defeat any such tax or the payment thereof, shall, in addition to other penalties provided by law, be liable to a penalty equal to the total amount of the tax evaded, or not collected, or not accounted for and paid over. No penalty shall be imposed under section 6653 or part II of subchapter A of chapter 68 for any offense to which this section is applicable. (b) Preliminary notice requirement(1) In generalNo penalty shall be imposed under subsection (a) unless the Secretary notifies the taxpayer in writing by mail to an address as determined under section 6212(b) or in person that the taxpayer shall be subject to an assessment of such penalty. (2) Timing of noticeThe mailing of the notice described in paragraph (1) (or, in the case of such a notice delivered in person, such delivery) shall precede any notice and demand of any penalty under subsection (a) by at least 60 days. (3) Statute of limitationsIf 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 jeopardyThis subsection shall not apply if the Secretary finds that the collection of the penalty is in jeopardy. (c) Extension of period of collection where bond is filed(1) In generalIf, 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 penaltyIf, within 30 days after the day on which his claim for refund with respect to any penalty under subsection (a) is denied, the person described in paragraph (1) fails to begin a proceeding in the appropriate United States district court (or in the Court of Federal Claims) for the determination of his liability for such penalty, paragraph (1) shall cease to apply with respect to such penalty, effective on the day following the close of the 30-day period referred to in this paragraph. (3) BondThe bond referred to in paragraph (1) shall be in such form and with such sureties as the Secretary may by regulations prescribe and shall be in an amount equal to 1½ times the amount of excess of the penalty assessed over the payment described in paragraph (1). (4) Suspension of running of period of limitations on collectionThe running of the period of limitations provided in section 6502 on the collection by levy or by a proceeding in court in respect of any penalty described in paragraph (1) shall be suspended for the period during which the Secretary is prohibited from collecting by levy or a proceeding in court. (5) Jeopardy collectionIf the Secretary makes a finding that the collection of the penalty is in jeopardy, nothing in this subsection shall prevent the immediate collection of such penalty. (d) Right of contribution where more than 1 person liable for penaltyIf 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 organizationsNo 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).

26 U.S.C. § 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 costsWhenever 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 7433Whenever it appears to the court that the taxpayer’s position in the proceedings before the court instituted or maintained by such taxpayer under section 7433 is frivolous or groundless, the court may require the taxpayer to pay to the United States a penalty not in excess of $10,000. (2) Collection of sanctions and costsIn any civil proceeding before any court (other than the Tax Court) which is brought by or against the United States in connection with the determination, collection, or refund of any tax, interest, or penalty under this title, any monetary sanctions, penalties, or costs awarded by the court to the United States may be assessed by the Secretary and, upon notice and demand, may be collected in the same manner as a tax. (3) Sanctions and costs awarded by a court of appealsIn connection with any appeal from a proceeding in the Tax Court or a civil proceeding described in paragraph (2), an order of a United States Court of Appeals or the Supreme Court awarding monetary sanctions, penalties or court costs to the United States may be registered in a district court upon filing a certified copy of such order and shall be enforceable as other district court judgments. Any such sanctions, penalties, or costs may be assessed by the Secretary and, upon notice and demand, may be collected in the same manner as a tax.

26 U.S.C. § 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.

26 U.S.C. § 6675 Excessive claims with respect to the use of certain fuels

(a) Civil penaltyIn 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), 6427 (relating to fuels not used for taxable purposes), or 6435 (relating to eligible indelibly dyed fuel) 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 definedFor purposes of this section, the term “excessive amount” means in the case of any person the amount by which—(1) the amount claimed under section 6416(a)(4), 6420, 6421, 6427, or 6435, as the case may be, for any period, exceeds (2) the amount allowable under such section for such period. (c) Assessment and collection of penaltyFor assessment and collection of penalty provided by subsection (a), see section 6206.

26 U.S.C. § 6676 Erroneous claim for refund or credit

(a) Civil penaltyIf a claim for refund or credit with respect to income or employment tax is made 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 for a penalty in an amount equal to 20 percent of the excessive amount. (b) Excessive amountFor purposes of this section, the term “excessive amount” means in the case of any person the amount by which the amount of the claim for refund or credit for any taxable year exceeds the amount of such claim allowable under this title for such taxable year. (c) Noneconomic substance transactions treated as lacking reasonable causeFor purposes of this section, any excessive amount which is attributable to any transaction described in section 6662(b)(6) shall not be treated as due to reasonable cause. (d) Coordination with other penaltiesThis section shall not apply to any portion of the excessive amount of a claim for refund or credit which is subject to a penalty imposed under part II of subchapter A of chapter 68.

26 U.S.C. § 6677 Failure to file information with respect to certain foreign trusts

(a) Civil penaltyIn 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 amountFor 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 exceptionNo penalty shall be imposed by this section on any failure which is shown to be due to reasonable cause and not due to willful neglect. The fact that a foreign jurisdiction would impose a civil or criminal penalty on the taxpayer (or any other person) for disclosing the required information is not reasonable cause. (e) Deficiency procedures not to applySubchapter B of chapter 63 (relating to deficiency procedures for income, estate, gift, and certain excise taxes) shall not apply in respect of the assessment or collection of any penalty imposed by subsection (a).

26 U.S.C. § 6679 Failure to file returns, etc., with respect to foreign corporations or foreign partnerships

(a) Civil penalty(1) In generalIn addition to any criminal penalty provided by law, any person required to file a return under section 6046 or 6046A who fails to file such return at the time provided in such section, or who files a return which does not show the information required pursuant to such section, shall pay a penalty of $10,000, unless it is shown that such failure is due to reasonable cause. (2) Increase in penalty where failure continues after notificationIf any failure described in paragraph (1) continues for more than 90 days after the day on which the Secretary mails notice of such failure to the United States person, such person shall pay a penalty (in addition to the amount required under paragraph (1)) of $10,000 for each 30-day period (or fraction thereof) during which such failure continues after the expiration of such 90-day period. The increase in any penalty under this paragraph shall not exceed $50,000. (b) Deficiency procedures not to applySubchapter B of chapter 63 (relating to deficiency procedure for income, estate, gift, and certain excise taxes) shall not apply in respect of the assessment or collection of any penalty imposed by subsection (a).

26 U.S.C. § 6682 False information with respect to withholding

(a) Civil penaltyIn 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) ExceptionThe 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 applySubchapter B of chapter 63 (relating to deficiency procedures for income, estate, gift, and certain excise taxes) shall not apply in respect to the assessment or collection of any penalty imposed by subsection (a).

26 U.S.C. § 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.

26 U.S.C. § 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.

26 U.S.C. § 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.

26 U.S.C. § 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.

26 U.S.C. § 6689 Failure to file notice of redetermination of foreign tax

(a) Civil penaltyIf 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 definedFor purposes of this section, the term “foreign tax redetermination” means any redetermination for which a notice is required under subsection (c) of section 905 or paragraph (2) of section 404A(g).

26 U.S.C. § 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.

26 U.S.C. § 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.

26 U.S.C. § 6693 Failure to provide reports on certain tax-favored accounts or annuities; penalties relating to designated nondeductible contributions

(a) Reports(1) In generalIf a person required to file a report under a provision referred to in paragraph (2) fails to file such report at the time and in the manner required by such provision, such person shall pay a penalty of $50 for each failure unless it is shown that such failure is due to reasonable cause. (2) ProvisionsThe 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), (F) section 530(h) (relating to Coverdell education savings accounts), and (G) section 530A(i) (relating to Trump 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 contributionsAny 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 formAny individual who fails to file a form required to be filed by the Secretary under section 408(o)(4) shall pay a penalty of $50 for each such failure unless it is shown that such failure is due to reasonable cause. (c) Penalties relating to simple retirement accounts(1) Employer penaltiesAn employer who fails to provide 1 or more notices required by section 408(l)(2)(C) shall pay a penalty of $50 for each day on which such failures continue. (2) Trustee and issuer penaltiesA 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 exceptionNo penalty shall be imposed under this subsection with respect to any failure which the taxpayer shows was due to reasonable cause. (d) Deficiency procedures not to applySubchapter B of chapter 63 (relating to deficiency procedures for income, estate, gift, and certain excise taxes) does not apply to the assessment or collection of any penalty imposed by this section.

26 U.S.C. § 6694 Understatement of taxpayer’s liability by tax return preparer

(a) Understatement due to unreasonable positions(1) In generalIf 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 generalExcept as otherwise provided in this paragraph, a position is described in this paragraph unless there is or was substantial authority for the position. (B) Disclosed positionsIf the position was disclosed as provided in section 6662(d)(2)(B)(ii)(I) and is not a position to which subparagraph (C) applies, the position is described in this paragraph unless there is a reasonable basis for the position. (C) Tax shelters and reportable transactionsIf the position is with respect to a tax shelter (as defined in section 6662(d)(2)(C)(ii)) or a reportable transaction to which section 6662A applies, the position is described in this paragraph unless it is reasonable to believe that the position would more likely than not be sustained on its merits. (3) Reasonable cause exceptionNo penalty shall be imposed under this subsection if it is shown that there is reasonable cause for the understatement and the tax return preparer acted in good faith. (b) Understatement due to willful or reckless conduct(1) In generalAny 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 conductConduct 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 penaltyThe amount of any penalty payable by any person by reason of this subsection for any return or claim for refund shall be reduced by the amount of the penalty paid by such person by reason of subsection (a). (c) Extension of period of collection where preparer pays 15 percent of penalty(1) In generalIf, within 30 days after the day on which notice and demand of any penalty under subsection (a) or (b) is made against any person who is a tax return preparer, such person pays an amount which is not less than 15 percent of the amount of such penalty and files a claim for refund of the amount so paid, no levy or proceeding in court for the collection of the remainder of such penalty shall be made, begun, or prosecuted until the 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) Preparer must bring suit in district court to determine his liability for penaltyIf, within 30 days after the day on which his claim for refund of any partial payment of any penalty under subsection (a) or (b) is denied (or, if earlier, within 30 days after the expiration of 6 months after the day on which he filed the claim for refund), the tax return preparer fails to begin a proceeding in the appropriate United States district court for the determination of his liability for such penalty, paragraph (1) shall cease to apply with respect to such penalty, effective on the day following the close of the applicable 30-day period referred to in this paragraph. (3) Suspension of running of period of limitations on collectionThe running of the period of limitations provided in section 6502 on the collection by levy or by a proceeding in court in respect of any penalty described in paragraph (1) shall be suspended for the period during which the Secretary is prohibited from collecting by levy or a proceeding in court. (d) Abatement of penalty where taxpayer’s liability not understatedIf at any time there is a final administrative determination or a final judicial decision that there was no understatement of liability in the case of any return or claim for refund with respect to which a penalty under subsection (a) or (b) has been assessed, such assessment shall be abated, and if any portion of such penalty has been paid the amount so paid shall be refunded to the person who made such payment as an overpayment of tax without regard to any period of limitations which, but for this subsection, would apply to the making of such refund. (e) Understatement of liability definedFor purposes of this section, the term “understatement of liability” means any understatement of the net amount payable with respect to any tax imposed by this title or any overstatement of the net amount creditable or refundable with respect to any such tax. Except as otherwise provided in subsection (d), the determination of whether or not there is an understatement of liability shall be made without regard to any administrative or judicial action involving the taxpayer. (f) Cross referenceFor definition of tax return preparer, see section 7701(a)(36).

26 U.S.C. § 6695 Other assessable penalties with respect to the preparation of tax returns for other persons

(a) Failure to furnish copy to taxpayerAny person who is a tax return preparer with respect to any return or claim for refund who fails to comply with section 6107(a) with respect to such return or claim shall pay a penalty of $50 for such failure, 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 documents filed during any calendar year shall not exceed $25,000. (b) Failure to sign returnAny person who is a tax return preparer with respect to any return or claim for refund, who is required by regulations prescribed by the Secretary to sign such return or claim, and who fails to comply with such regulations with respect to such return or claim shall pay a penalty of $50 for such failure, 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 documents filed during any calendar year shall not exceed $25,000. (c) Failure to furnish identifying numberAny person who is a tax return preparer with respect to any return or claim for refund and who fails to comply with section 6109(a)(4) with respect to such return or claim shall pay a penalty of $50 for such failure, 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 documents filed during any calendar year shall not exceed $25,000. (d) Failure to retain copy or listAny person who is a tax return preparer with respect to any return or claim for refund who fails to comply with section 6107(b) with respect to such return or claim shall pay a penalty of $50 for each such failure, 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. (e) Failure to file correct information returnsAny 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 checkAny person who is a tax return preparer who endorses or otherwise negotiates (directly or through an agent) any check made in respect of the taxes imposed by this title which is issued to a taxpayer (other than the tax return preparer) shall pay a penalty of $500 with respect to each such check. The preceding sentence shall not apply with respect to the deposit by a bank (within the meaning of section 581) of the full amount of the check in the taxpayer’s account in such bank for the benefit of the taxpayer. (g) Failure to be diligent in determining eligibility for certain tax benefitsAny 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 generalIn the case of any failure relating to a return or claim for refund filed in a calendar year beginning after 2014, each of the dollar amounts under subsections (a), (b), (c), (d), (e), (f), and (g) shall be increased by an amount equal to such dollar amount multiplied by the cost-of-living adjustment determined under section 1(f)(3) for the calendar year determined by substituting “calendar year 2013” for “calendar year 2016” in subparagraph (A)(ii) thereof. (2) RoundingIf 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.

26 U.S.C. § 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) ExceptionNo penalty shall be imposed under subsection (a) if the person establishes to the satisfaction of the Secretary that the value established in the appraisal was more likely than not the proper value.

26 U.S.C. § 6695B Penalty for substantial misstatements on certification provided by supplier

(a) Imposition of penaltyIf—(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 penaltyThe 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) ExceptionNo penalty shall be imposed under subsection (a) if the person establishes to the satisfaction of the Secretary that any inaccuracy or falsity described in subsection (a)(2) is due to a reasonable cause and not willful neglect. (d) DefinitionsAny term used in this section which is also used in section 7701(a)(52) shall have the meaning given such term in such section.

26 U.S.C. § 6696 Rules applicable with respect to sections 6694, 6695, 6695A, and 6695B

(a) Penalties to be additional to any other penaltiesThe penalties provided by sections 6694, 6695, 6695A, and 6695B shall be in addition to any other penalties provided by law. (b) Deficiency procedures not to applySubchapter B of chapter 63 (relating to deficiency procedures for income, estate, gift, and certain excise taxes) shall not apply with respect to the assessment or collection of the penalties provided by sections 6694, 6695, 6695A, and 6695B. (c) Procedure for claiming refundAny claim for credit or refund of any penalty paid under section 6694, 6695, 6695A, or 6695B shall be filed in accordance with regulations prescribed by the Secretary. (d) Periods of limitation(1) AssessmentThe amount of any penalty under section 6694(a), 6695, or 6695A shall be assessed within 3 years (or, in the case of any penalty under section 6695B, 6 years) after the return or claim for refund with respect to which the penalty is assessed was filed, and no proceeding in court without assessment for the collection of such tax shall be begun after the expiration of such period. In the case of any penalty under section 6694(b), the penalty may be assessed, or a proceeding in court for the collection of the penalty may be begun without assessment, at any time. (2) Claim for refundExcept as provided in section 6694(d), any claim for refund of an overpayment of any penalty assessed under section 6694, 6695, or 6695A shall be filed within 3 years (or, in the case of any claim for refund of an overpayment of any penalty assessed under section 6695B, 6 years) from the time the penalty was paid. (e) DefinitionsFor purposes of sections 6694, 6695, 6695A, and 6695B—(1) ReturnThe term “return” means any return of any tax imposed by this title, any administrative adjustment request under section 6227, and any partnership adjustment tracking report under section 6226(b)(4)(A). (2) Claim for refundThe term “claim for refund” means a claim for refund of, or credit against, any tax imposed by this title.

26 U.S.C. § 6698 Failure to file partnership return

(a) General ruleIn 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 monthFor 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 penaltyThe penalty imposed by subsection (a) shall be assessed against the partnership. (d) Deficiency procedures not to applySubchapter B of chapter 63 (relating to deficiency procedures for income, estate, gift, and certain excise taxes) shall not apply in respect of the assessment or collection of any penalty imposed by subsection (a). (e) Adjustment for inflation(1) In generalIn the case of any return required to be filed in a calendar year beginning after 2014, the $195 dollar amount under subsection (b)(1) shall be increased by an amount equal to such dollar amount multiplied by the cost-of-living adjustment determined under section 1(f)(3) for the calendar year determined by substituting “calendar year 2013” for “calendar year 2016” in subparagraph (A)(ii) thereof. (2) RoundingIf any amount adjusted under paragraph (1) is not a multiple of $5, such amount shall be rounded to the next lowest multiple of $5.

26 U.S.C. § 6699 Failure to file S corporation return

(a) General ruleIn 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 monthFor 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 penaltyThe penalty imposed by subsection (a) shall be assessed against the S corporation. (d) Deficiency procedures not to applySubchapter B of chapter 63 (relating to deficiency procedures for income, estate, gift, and certain excise taxes) shall not apply in respect of the assessment or collection of any penalty imposed by subsection (a). (e) Adjustment for inflation(1) In generalIn the case of any return required to be filed in a calendar year beginning after 2014, the $195 dollar amount under subsection (b)(1) shall be increased by an amount equal to such dollar amount multiplied by the cost-of-living adjustment determined under section 1(f)(3) for the calendar year determined by substituting “calendar year 2013” for “calendar year 2016” in subparagraph (A)(ii) thereof. (2) RoundingIf any amount adjusted under paragraph (1) is not a multiple of $5, such amount shall be rounded to the next lowest multiple of $5.

26 U.S.C. § 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 waiveThe Secretary may waive all or any part of the penalty provided by subsection (a) with respect to any gross valuation overstatement on a showing that there was a reasonable basis for the valuation and that such valuation was made in good faith. (c) Penalty in addition to other penaltiesThe penalty imposed by this section shall be in addition to any other penalty provided by law.

26 U.S.C. § 6701 Penalties for aiding and abetting understatement of tax liability

(a) Imposition of penaltyAny 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 generalExcept as provided in paragraph (2), the amount of the penalty imposed by subsection (a) shall be $1,000. (2) CorporationsIf the return, affidavit, claim, or other document relates to the tax liability of a corporation, the amount of the penalty imposed by subsection (a) shall be $10,000. (3) Only 1 penalty per person per periodIf any person is subject to a penalty under subsection (a) with respect to any document relating to any taxpayer for any taxable period (or where there is no taxable period, any taxable event), such person shall not be subject to a penalty under subsection (a) with respect to any other document relating to such taxpayer for such taxable period (or event). (c) Activities of subordinates(1) In generalFor 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) SubordinateFor purposes of paragraph (1), the term “subordinate” means any other person (whether or not a director, officer, employee, or agent of the taxpayer involved) over whose activities the person has direction, supervision, or control. (d) Taxpayer not required to have knowledgeSubsection (a) shall apply whether or not the understatement is with the knowledge or consent of the persons authorized or required to present the return, affidavit, claim, or other document. (e) Certain actions not treated as aid or assistanceFor purposes of subsection (a)(1), a person furnishing typing, reproducing, or other mechanical assistance with respect to a document shall not be treated as having aided or assisted in the preparation of such document by reason of such assistance. (f) Penalty in addition to other penalties(1) In generalExcept as provided by paragraphs (2) and (3), the penalty imposed by this section shall be in addition to any other penalty provided by law. (2) Coordination with return preparer penaltiesNo penalty shall be assessed under subsection (a) or (b) of section 6694 on any person with respect to any document for which a penalty is assessed on such person under subsection (a). (3) Coordination with section 6700No penalty shall be assessed under section 6700 on any person with respect to any document for which a penalty is assessed on such person under subsection (a).

26 U.S.C. § 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 penaltyExcept as provided in paragraph (3), any person who submits a specified frivolous submission shall pay a penalty of $5,000. (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 submissionIf the Secretary provides a person with notice that a submission is a specified frivolous submission and such person withdraws such submission within 30 days after such notice, the penalty imposed under paragraph (1) shall not apply with respect to such submission. (c) Listing of frivolous positionsThe Secretary shall prescribe (and periodically revise) a list of positions which the Secretary has identified as being frivolous for purposes of this subsection. The Secretary shall not include in such list any position that the Secretary determines meets the requirement of section 6662(d)(2)(B)(ii)(II). (d) Reduction of penaltyThe Secretary may reduce the amount of any penalty imposed under this section if the Secretary determines that such reduction would promote compliance with and administration of the Federal tax laws. (e) Penalties in addition to other penaltiesThe penalties imposed by this section shall be in addition to any other penalty provided by law. (f) Partnership adjustmentsAn administrative adjustment request under section 6227 and a partnership adjustment tracking report under section 6226(b)(4)(A) shall be treated as a return for purposes of this section.

26 U.S.C. § 6703 Rules applicable to penalties under sections 6700, 6701, and 6702

(a) Burden of proofIn any proceeding involving the issue of whether or not any person is liable for a penalty under section 6700, 6701, or 6702, the burden of proof with respect to such issue shall be on the Secretary. (b) Deficiency procedures not to applySubchapter B of chapter 63 (relating to deficiency procedures) shall not apply with respect to the assessment or collection of the penalties provided by sections 6700, 6701, and 6702. (c) Extension of period of collection where person pays 15 percent of penalty(1) In generalIf, within 30 days after the day on which notice and demand of any penalty under section 6700 or 6701 is made against any person, such person pays an amount which is not less than 15 percent of the amount of such penalty and files a claim for refund of the amount so paid, no levy or proceeding in court for the collection of the remainder of such penalty shall be made, begun, or prosecuted until the 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) Person must bring suit in district court to determine his liability for penaltyIf, within 30 days after the day on which his claim for refund of any partial payment of any penalty under section 6700 or 6701 is denied (or, if earlier, within 30 days after the expiration of 6 months after the day on which he filed the claim for refund), the person fails to begin a proceeding in the appropriate United States district court for the determination of his liability for such penalty, paragraph (1) shall cease to apply with respect to such penalty, effective on the day following the close of the applicable 30-day period referred to in this paragraph. (3) Suspension of running of period of limitations on collectionThe running of the period of limitations provided in section 6502 on the collection by levy or by a proceeding in court in respect of any penalty described in paragraph (1) shall be suspended for the period during which the Secretary is prohibited from collecting by levy or a proceeding in court.

26 U.S.C. § 6704 Failure to keep records necessary to meet reporting requirements under section 6047(d)

(a) Liability for penaltyAny 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 generalThe penalty of any person for any calendar year shall be $50, multiplied by the number of individuals with respect to whom such failure occurs in such year. (2) Maximum amountThe penalty under this section of any person for any calendar year shall not exceed $50,000. (c) Exceptions(1) Reasonable causeNo penalty shall be imposed by this section on any person for any failure which is shown to be due to reasonable cause and not to willful neglect. (2) Inability to correct previous failureNo penalty shall be imposed by this section on any failure by a person if such failure is attributable to a prior failure which has been penalized under this section and with respect to which the person has made all reasonable efforts to correct the failure. (3) Pre-1983 failuresNo penalty shall be imposed by this section on any person for any failure which is attributable to a failure occurring before January 1, 1983, if the person has made all reasonable efforts to correct such pre-1983 failure.

26 U.S.C. § 6705 Failure by broker to provide notice to payors

(a) In generalAny person required under section 3406(d)(2)(B) to provide notice to any payor who willfully fails to provide such notice to such payor shall pay a penalty of $500 for each such failure. (b) Penalty in addition to other penaltiesAny penalty imposed by this section shall be in addition to any other penalty provided by law.

26 U.S.C. § 6706 Original issue discount information requirements

(a) Failure to show information on debt instrumentIn the case of a failure to set forth on a debt instrument the information required to be set forth on such instrument under section 1275(c)(1), unless it is shown that such failure is due to reasonable cause and not to willful neglect, the issuer shall pay a penalty of $50 for each instrument with respect to which such a failure exists. (b) Failure to furnish information to SecretaryAny issuer who fails to furnish information required under section 1275(c)(2) with respect to any issue of debt instruments on the date prescribed therefor (determined with regard to any extension of time for filing) shall pay a penalty equal to 1 percent of the aggregate issue price of such issue, unless it is shown that such failure is due to reasonable cause and not willful neglect. The amount of the penalty imposed under the preceding sentence with respect to any issue of debt instruments shall not exceed $50,000 for such issue. (c) Deficiency procedures not to applySubchapter B of chapter 63 (relating to deficiency procedures for income, estate, gift, and certain excise taxes) shall not apply in respect of the assessment or collection of any penalty imposed by this section.

26 U.S.C. § 6707 Failure to furnish information regarding reportable transactions

(a) In generalIf 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 generalExcept as provided in paragraph (2), the penalty imposed under subsection (a) with respect to any failure shall be $50,000. (2) Listed transactionsThe 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 authorityThe provisions of section 6707A(d) (relating to authority of Commissioner to rescind penalty) shall apply to any penalty imposed under this section. (d) Reportable and listed transactionsFor purposes of this section, the terms “reportable transaction” and “listed transaction” have the respective meanings given to such terms by section 6707A(c).

26 U.S.C. § 6707A Penalty for failure to include reportable transaction information with return

(a) Imposition of penaltyAny person who fails to include on any return or statement any information with respect to a reportable transaction which is required under section 6011 to be included with such return or statement shall pay a penalty in the amount determined under subsection (b). (b) Amount of penalty(1) In generalExcept as otherwise provided in this subsection, the amount of the penalty under subsection (a) with respect to any reportable transaction shall be 75 percent of the decrease in tax shown on the return as a result of such transaction (or which would have resulted from such transaction if such transaction were respected for Federal tax purposes). (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 penaltyThe amount of the penalty under subsection (a) with respect to any transaction shall not be less than $10,000 ($5,000 in the case of a natural person). (c) DefinitionsFor purposes of this section:(1) Reportable transactionThe term “reportable transaction” means any transaction with respect to which information is required to be included with a return or statement because, as determined under regulations prescribed under section 6011, such transaction is of a type which the Secretary determines as having a potential for tax avoidance or evasion. (2) Listed transactionThe term “listed transaction” means a reportable transaction which is the same as, or substantially similar to, a transaction specifically identified by the Secretary as a tax avoidance transaction for purposes of section 6011. (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 appealNotwithstanding any other provision of law, any determination under this subsection may not be reviewed in any judicial proceeding. (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 penaltiesThe penalty imposed by this section shall be in addition to any other penalty imposed by this title.

26 U.S.C. § 6708 Failure to maintain lists of advisees with respect to reportable transactions

(a) Imposition of penalty(1) In generalIf any person who is required to maintain a list under section 6112(a) fails to make such list available upon written request to the Secretary in accordance with section 6112(b) within 20 business days after the date of such request, such person shall pay a penalty of $10,000 for each day of such failure after such 20th day. (2) Reasonable cause exceptionNo penalty shall be imposed by paragraph (1) with respect to the failure on any day if such failure is due to reasonable cause. (b) Penalty in addition to other penaltiesThe penalty imposed by this section shall be in addition to any other penalty provided by law.

26 U.S.C. § 6709 Penalties with respect to mortgage credit certificates

(a) NegligenceIf—(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) FraudIf a misstatement described in subsection (a)(1) is due to fraud on the part of the person making such misstatement, in addition to any criminal penalty, such person shall pay a penalty of $10,000 for each mortgage credit certificate with respect to which such a misstatement is made. (c) ReportsAny person required by section 25(g) to file a report with the Secretary who fails to file the report with respect to any mortgage credit certificate at the time and in the manner required by the Secretary shall pay a penalty of $200 for such failure unless it is shown that such failure is due to reasonable cause and not to willful neglect. In the case of any report required under the second sentence of section 25(g), the aggregate amount of the penalty imposed by the preceding sentence shall not exceed $2,000. (d) Mortgage credit certificateThe term “mortgage credit certificate” has the meaning given to such term by section 25(c).

26 U.S.C. § 6710 Failure to disclose that contributions are nondeductible

(a) Imposition of penaltyIf there is a failure to meet the requirement of section 6113 with respect to a fundraising solicitation by (or on behalf of) an organization to which section 6113 applies, such organization shall pay a penalty of $1,000 for each day on which such a failure occurred. The maximum penalty imposed under this subsection on failures by any organization during any calendar year shall not exceed $10,000. (b) Reasonable cause exceptionNo penalty shall be imposed under this section with respect to any failure if it is shown that such failure is due to reasonable cause. (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.

26 U.S.C. § 6711 Failure by tax-exempt organization to disclose that certain information or service available from Federal Government

(a) Imposition of penaltyIf—(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 penaltyThe 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) DefinitionsFor purposes of this section—(1) Tax-exempt organizationThe 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 occursThe day on which any failure referred to in subsection (a) occurs shall be determined under rules similar to the rules of section 6710(d).

26 U.S.C. § 6712 Failure to disclose treaty-based return positions

(a) General ruleIf a taxpayer fails to meet the requirements of section 6114, there is hereby imposed a penalty equal to $1,000 ($10,000 in the case of a C corporation) on each such failure. (b) Authority to waiveThe Secretary may waive all or any part of the penalty provided by this section on a showing by the taxpayer that there was reasonable cause for the failure and that the taxpayer acted in good faith. (c) Penalty in addition to other penaltiesThe penalty imposed by this section shall be in addition to any other penalty imposed by law.

26 U.S.C. § 6713 Disclosure or use of information by preparers of returns

(a) Imposition of penaltyIf 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 generalIn 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 limitationThe limitation on the total amount of the penalty under subsection (a) shall be applied separately with respect to disclosures or uses to which this subsection applies and to which it does not apply. (c) ExceptionsThe rules of section 7216(b) shall apply for purposes of this section. (d) Deficiency procedures not to applySubchapter B of chapter 63 (relating to deficiency procedures for income, estate, gift, and certain excise taxes) shall not apply in respect of the assessment or collection of any penalty imposed by this section.

26 U.S.C. § 6714 Failure to meet disclosure requirements applicable to quid pro quo contributions

(a) Imposition of penaltyIf an organization fails to meet the disclosure requirement of section 6115 with respect to a quid pro quo contribution, such organization shall pay a penalty of $10 for each contribution in respect of which the organization fails to make the required disclosure, except that the total penalty imposed by this subsection with respect to a particular fundraising event or mailing shall not exceed $5,000. (b) Reasonable cause exceptionNo penalty shall be imposed under this section with respect to any failure if it is shown that such failure is due to reasonable cause.

26 U.S.C. § 6715 Dyed fuel sold for use or used in taxable use, etc.

(a) Imposition of penaltyIf—(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 generalExcept 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 violationsIn determining the penalty under subsection (a) on any person, paragraph (1) shall be applied by increasing the amount in paragraph (1)(A) by the product of such amount and the number of prior penalties (if any) imposed by this section on such person (or a related person or any predecessor of such person or related person). (c) DefinitionsFor purposes of this section—(1) Dyed fuelThe term “dyed fuel” means any dyed diesel fuel or kerosene, whether or not the fuel was dyed pursuant to section 4082. (2) Nontaxable useThe term “nontaxable use” has the meaning given such term by section 4082(b). (d) Joint and several liability of certain officers and employeesIf a penalty is imposed under this section on any business entity, each officer, employee, or agent of such entity who willfully participated in any act giving rise to such penalty shall be jointly and severally liable with such entity for such penalty. (e) No administrative appeal for third and subsequent violationsIn 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.

26 U.S.C. § 6715A Tampering with or failing to maintain security requirements for mechanical dye injection systems

(a) Imposition of penalty(1) TamperingIf any person tampers with a mechanical dye injection system used to indelibly dye fuel for purposes of section 4082, such person shall pay a penalty in addition to the tax (if any). (2) Failure to maintain security requirementsIf any operator of a mechanical dye injection system used to indelibly dye fuel for purposes of section 4082 fails to maintain the security standards for such system as established by the Secretary, then such operator shall pay a penalty in addition to the tax (if any). (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 generalIf a penalty is imposed under this section on any business entity, each officer, employee, or agent of such entity or other contracting party who willfully participated in any act giving rise to such penalty shall be jointly and severally liable with such entity for such penalty. (2) Affiliated groupsIf a business entity described in paragraph (1) is part of an affiliated group (as defined in section 1504(a)), the parent corporation of such entity shall be jointly and severally liable with such entity for the penalty imposed under this section.

26 U.S.C. § 6717 Refusal of entry

(a) In generalIn addition to any other penalty provided by law, any person who refuses to admit entry or refuses to permit any other action by the Secretary authorized by section 4083(d)(1) shall pay a penalty of $1,000 for such refusal. (b) Joint and several liability(1) In generalIf a penalty is imposed under this section on any business entity, each officer, employee, or agent of such entity or other contracting party who willfully participated in any act giving rise to such penalty shall be jointly and severally liable with such entity for such penalty. (2) Affiliated groupsIf a business entity described in paragraph (1) is part of an affiliated group (as defined in section 1504(a)), the parent corporation of such entity shall be jointly and severally liable with such entity for the penalty imposed under this section. (c) Reasonable cause exceptionNo penalty shall be imposed under this section with respect to any failure if it is shown that such failure is due to reasonable cause.

26 U.S.C. § 6718 Failure to display tax registration on vessels

(a) Failure to display registrationEvery operator of a vessel who fails to display proof of registration pursuant to section 4101(a)(3) shall pay a penalty of $500 for each such failure. With respect to any vessel, only one penalty shall be imposed by this section during any calendar month. (b) Multiple violationsIn determining the penalty under subsection (a) on any person, subsection (a) shall be applied by increasing the amount in subsection (a) by the product of such amount and the aggregate number of penalties (if any) imposed with respect to prior months by this section on such person (or a related person or any predecessor of such person or related person). (c) Reasonable cause exceptionNo penalty shall be imposed under this section with respect to any failure if it is shown that such failure is due to reasonable cause.

26 U.S.C. § 6719 Failure to register or reregister

(a) Failure to register or reregisterEvery person who is required to register or reregister under section 4101 and fails to do so shall pay a penalty in addition to the tax (if any). (b) Amount of penaltyThe 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 exceptionNo penalty shall be imposed under this section with respect to any failure if it is shown that such failure is due to reasonable cause.

26 U.S.C. § 6720 Fraudulent acknowledgments with respect to donations of motor vehicles, boats, and airplanes

Any 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.

26 U.S.C. § 6720A Penalty with respect to certain adulterated fuels

(a) In generalAny person who knowingly transfers for resale, sells for resale, or holds out for resale any liquid for use in a diesel-powered highway vehicle or a diesel-powered train which does not meet applicable EPA regulations (as defined in section 45H(c)(3)), shall pay a penalty of $10,000 for each such transfer, sale, or holding out for resale, in addition to the tax on such liquid (if any). (b) Penalty in the case of retailersAny person who knowingly holds out for sale (other than for resale) any liquid described in subsection (a), shall pay a penalty of $10,000 for each such holding out for sale, in addition to the tax on such liquid (if any).

26 U.S.C. § 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.

26 U.S.C. § 6720C Penalty for failure to notify health plan of cessation of eligibility for continuation coverage premium assistance

(a) In generalExcept in the case of a failure described in subsection (b) or (c), any person required to notify a group health plan under section 9501(a)(2)(B) of the American Rescue Plan Act of 2021 who fails to make such a notification at such time and in such manner as the Secretary of Labor may require shall pay a penalty of $250 for each such failure. (b) Intentional failureIn 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 exceptionNo penalty shall be imposed under this section with respect to any failure if it is shown that such failure is due to reasonable cause and not to willful neglect.