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

§ 301.6693-1 Penalty for failure to provide reports and documents concerning individual retirement accounts or annuities.

Amended 1986, 1988, 1997

1997 Pub. L. 105-34 Pub. L. 105–34, § 211(e)(2)(C), substituted “certain tax-favored” for “individual retirement” in section catchline.
1988 Pub. L. 100-647 Pub. L. 100–647, § 1011(b)(4)(B)(i), substituted “penalties relating to” for “overstatement of” in section catchline.
1986 Pub. L. 99-514 Pub. L. 99–514, § 1102(d)(2)(B), inserted “; overstatement of designated nondeductible contributions” in section catchline.

(a) Reports

Amended 1980, 1984, 1996, 1997

1997 Pub. L. 105-34 Pub. L. 105–34, § 1602(a)(4), inserted concluding provisions.
1996 Pub. L. 104-191 Pub. L. 104–191 inserted heading and amended text generally. Prior to amendment, text read as follows: “The person required by subsection (i) or (l) of section 408 to file a report regarding an individual retirement account or individual retirement annuity at the time and in the manner required by such subsection shall pay a penalty of $50 for each failure unless it is shown that such failure is due to reasonable cause. 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)(W).”
1996 Pub. L. 104-188 Pub. L. 104–188, § 1455(d)(3), inserted at end “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)(W).”
1984 Pub. L. 98-369 Pub. L. 98–369 substituted “$50” for “$10”.
1980 Pub. L. 96-222 Pub. L. 96–222 substituted “subsection (i) or (l) of section 408 to file” for “section 408(i) to file”, and “such subsection shall pay” for “section 408(i) shall pay”.

Cited by 1

(1) In general If 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) Provisions The provisions referred to in this paragraph are—

Cited by 1

(A) subsections (i) and (l) of section 408 (relating to individual retirement plans),

(B) section 220(h) (relating to Archer MSAs),

Amended 2000

2000 Pub. L. 106-554 Pub. L. 106–554 substituted “Archer MSAs” for “medical savings accounts”.

Amended 1997, 1998, 2001, 2003

2003 Pub. L. 108-173 Pub. L. 108–173 added subpar. (C) and redesignated former subpars. (C) and (D) as (D) and (E), respectively.
2001 Pub. L. 107-16 Pub. L. 107–16 substituted “qualified tuition” for “qualified State tuition”.
1998 Pub. L. 105-277 Pub. L. 105–277 substituted “section” for “Section”.
1997 Pub. L. 105-34 Pub. L. 105–34, § 211(e)(2)(B), added subpar. (C).

(D) section 529(d) (relating to qualified tuition programs),

Amended 1997, 1998, 2001, 2003

2003 Pub. L. 108-173 Pub. L. 108–173 added subpar. (C) and redesignated former subpars. (C) and (D) as (D) and (E), respectively.
2001 Pub. L. 107-22 Pub. L. 107–22 substituted “Coverdell education savings” for “education individual retirement”.
1998 Pub. L. 105-277 Pub. L. 105–277 substituted “section” for “Section”.
1997 Pub. L. 105-34 Pub. L. 105–34, § 213(c), added subpar. (D).

(E) section 529A(d) (relating to qualified ABLE programs),

Amended 2003, 2014

2014 Pub. L. 113-295 Pub. L. 113–295 added subpar. (E) and redesignated former subpar. (E) as (F).
2003 Pub. L. 108-173 Pub. L. 108–173 added subpar. (C) and redesignated former subpars. (C) and (D) as (D) and (E), respectively.

(F) section 530(h) (relating to Coverdell education savings accounts), and

Amended 2014

2014 Pub. L. 113-295 Pub. L. 113–295 added subpar. (E) and redesignated former subpar. (E) as (F).

(G) section 530A(i) (relating to Trump accounts).

Amended 2025

2025 Pub. L. 119-21 Pub. L. 119–21 added subpar. (G).

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

Amended 1986, 1988

1988 Pub. L. 100-647 Pub. L. 100–647, § 1011(b)(4)(A), substituted “Penalties relating to” for “Overstatement of designated” in heading and amended text generally. Prior to amendment, text read as follows: “Any individual who—
“(1) is required to furnish information under section 408(o)(4) as to the amount of designated nondeductible contributions made for any taxable year, and
“(2) 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.”
1986 Pub. L. 99-514 Pub. L. 99–514, § 1102(d)(1), added subsec. (b). Former subsec. (b) redesignated (c).

Cited by 1

(1) Overstatement of designated nondeductible contributions Any individual who—

(A) is required to furnish information under section 408(o)(4) as to the amount of designated nondeductible contributions made for any taxable year, and

(B) overstates the amount of such contributions made for such taxable year,

shall pay a penalty of $100 for each such overstatement unless it is shown that such overstatement is due to reasonable cause.

(2) Failure to file form Any 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.

Amended 1986, 1996

1996 Pub. L. 104-188 Pub. L. 104–188, § 1421(b)(4)(B), added subsec. (c) and redesignated former subsec. (c) as (d).
1986 Pub. L. 99-514 Pub. L. 99–514, § 1102(d)(1), (2)(A), redesignated former subsec. (b) as (c) and substituted “this section” for “subsection (a)”.

(1) Employer penalties An 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 penalties A trustee or issuer who fails—

Amended 1997

1997 Pub. L. 105-34 Pub. L. 105–34, § 1601(d)(1)(C)(ii), inserted “and issuer” before “penalties” in heading and “or issuer” before “who fails” in introductory provisions.

(A) to provide 1 or more statements required by the last sentence of section 408(i) shall pay a penalty of $50 for each day on which such failures continue, or

(B) to provide 1 or more summary descriptions required by section 408(l)(2)(B) shall pay a penalty of $50 for each day on which such failures continue.

(3) Reasonable cause exception No 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 apply Subchapter 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.

Amended 1996

1996 Pub. L. 104-188 Pub. L. 104–188, § 1421(b)(4)(B), added subsec. (c) and redesignated former subsec. (c) as (d).