Amended 2004
- 2004 Pub. L. 108-357 Pub. L. 108–357 amended section catchline and text generally, substituting provisions relating to penalty for failure to furnish information regarding reportable transactions for provisions relating to penalty for failure to furnish information regarding tax shelters.
Cases: Larson v. United States, 888 F.3d 578 (2d Cir. 2018)
Final rules 1
(a) In general If a person who is required to file a return under section 6111(a) with respect to any reportable transaction—
(1) fails to file such return on or before the date prescribed therefor, or
Amended 1997
- 1997 Pub. L. 105-34 Pub. L. 105–34, § 1028(d)(2), which directed the substitution of “paragraph (2) or (3), as the case may be” for “paragraph (2)” in subpar. (A) of par. (1), was executed by making the substitution in the concluding provisions of par. (1) to reflect the probable intent of Congress.
(2) files false or incomplete information with the Secretary with respect to such transaction,
Amended 1986, 1997
- 1997 Pub. L. 105-34 Pub. L. 105–34, § 1028(d)(1), substituted “Except as provided in paragraph (3), the penalty” for “The penalty”.
- 1986 Pub. L. 99-514 Pub. L. 99–514, § 1532(a), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “The penalty imposed under paragraph (1) with respect to any tax shelter shall be an amount equal to the greater of—
“(A) $500, or
“(B) the lesser of (i) 1 percent of the aggregate amount invested in such tax shelter, or (ii) $10,000.
The $10,000 limitation in subparagraph (B) shall not apply where there is an intentional disregard of the requirements of section 6111(a).”
such person shall pay a penalty with respect to such return in the amount determined under subsection (b).
Amended 1997
- 1997 Pub. L. 105-34 Pub. L. 105–34, § 1028(b), added par. (3).
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(b) Amount of penalty
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(1) In general Except as provided in paragraph (2), the penalty imposed under subsection (a) with respect to any failure shall be $50,000.
(2) Listed transactions The penalty imposed under subsection (a) with respect to any listed transaction shall be an amount equal to the greater of—
Amended 1986
- 1986 Pub. L. 99-514 Pub. L. 99–514, § 1533(a), substituted “$250” for “$50”.
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(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.
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Subparagraph (B) shall be applied by substituting “75 percent” for “50 percent” in the case of an intentional failure or act described in subsection (a).
(c) Rescission authority The 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 transactions For purposes of this section, the terms “reportable transaction” and “listed transaction” have the respective meanings given to such terms by section 6707A(c).