Cases: National Commodity and Barter Ass'n v. United States, 42 F.3d 1406 (10th Cir. 1994); YA Global Investments, LP v. Commissioner (T.C. 2023)
(a) General rule In addition to the penalty imposed by section 7203 (relating to willful failure to file return, supply information, or pay tax), if any partnership required to file a return under section 6031, or a partnership adjustment tracking report under section 6226(b)(4)(A), for any taxable year—
Amended 2007, 2018
- 2018 Pub. L. 115-141 Pub. L. 115–141, § 206(n)(2)(A), inserted “, or a partnership adjustment tracking report under section 6226(b)(4)(A),” after “under section 6031” in introductory provisions.
- 2007 Pub. L. 110-142 Pub. L. 110–142, § 8(a), substituted “12 months” for “5 months” in concluding provisions.
Cases: Vica Technologies, LLC v. Commissioner, T.C. Summ. Op. 2019-7
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(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
Amended 2018
- 2018 Pub. L. 115-141 Pub. L. 115–141, § 206(n)(2)(B), inserted “, or such report,” after “such return”.
(2) files a return or a report which fails to show the information required under section 6031 or 6226(b)(4)(A), respectively,
Amended 2018
- 2018 Pub. L. 115-141 Pub. L. 115–141, § 206(n)(2)(C), inserted “or a report” after “a return” and “or 6226(b)(4)(A), respectively” after “section 6031”.
such partnership shall be liable for a penalty determined under subsection (b) for each month (or fraction thereof) during which such failure continues (but not to exceed 12 months), unless it is shown that such failure is due to reasonable cause.
(b) Amount per month For purposes of subsection (a), the amount determined under this subsection for any month is the product of—
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(1) $195, multiplied by
Amended 2007, 2008, 2009
- 2009 Pub. L. 111-92 Pub. L. 111–92 substituted “$195” for “$89”.
- 2008 Pub. L. 110-458 Pub. L. 110–458 substituted “$89” for “$85”.
- 2007 Pub. L. 110-142 Pub. L. 110–142, § 8(b), substituted “$85” for “$50”.
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(2) the number of persons who were partners in the partnership during any part of the taxable year.
Amended 2018
- 2018 Pub. L. 115-141 Pub. L. 115–141, § 401(a)(313), inserted period at end.
(c) Assessment of penalty The penalty imposed by subsection (a) shall be assessed against the partnership.
(d) Deficiency procedures not to apply Subchapter 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
Amended 2014
- 2014 Pub. L. 113-295 Pub. L. 113–295 added subsec. (e).
(1) In general In 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.
Amended 2017, 2018
- 2018 Pub. L. 115-141 Pub. L. 115–141, § 401(a)(299)(D), inserted “an amount equal to” after “increased by” and “for the calendar year” after “section 1(f)(3)”.
- 2017 Pub. L. 115-97 Pub. L. 115–97 substituted “for ‘calendar year 2016’ in subparagraph (A)(ii)” for “for ‘calendar year 1992’ in subparagraph (B)”.
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(2) Rounding If any amount adjusted under paragraph (1) is not a multiple of $5, such amount shall be rounded to the next lowest multiple of $5.