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

Source: OLRC release point 119-134 <https://uscode.house.gov/us/usc/119-134/t26/s6707>. Cite pinpoints as 26 U.S.C. § 6707(a)(1).

## § 6707(a) In general

If a person who is required to file a return under section 6111(a) with respect to any reportable transaction—

**§ 6707(a)(1)** fails to file such return on or before the date prescribed therefor, or

**§ 6707(a)(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).

## § 6707(b) Amount of penalty

**§ 6707(b)(1) In general.** Except as provided in paragraph (2), the penalty imposed under subsection (a) with respect to any failure shall be $50,000.

**§ 6707(b)(2) Listed transactions.** The penalty imposed under subsection (a) with respect to any listed transaction shall be an amount equal to the greater of—

**§ 6707(b)(2)(A)** $200,000, or

**§ 6707(b)(2)(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).

## § 6707(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.

## § 6707(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).

## Regulations

- [Treas. Reg. § 301.6707-1](/26/reg/301.6707-1.md): Failure to furnish information regarding reportable transactions. (interprets § 6707)

## Forms named in the regulations

- [Form 8918](https://www.irs.gov/pub/irs-pdf/f8918.pdf)
- [Form 8886](https://www.irs.gov/pub/irs-pdf/f8886.pdf)

## Final rules

- [79 FR 44282](https://www.federalregister.gov/documents/2014/07/31/2014-17932/material-advisor-penalty-for-failure-to-furnish-information-regarding-reportable-transactions) (2014): Material Advisor Penalty for Failure To Furnish Information Regarding Reportable Transactions

## Leading cases

- [Larson v. United States, 888 F.3d 578 (2d Cir. 2018)](https://www.courtlistener.com/opinion/4492488/larson-v-united-states/)

## Connections

Cites: § 6111 Disclosure of reportable transactions; § 6707A Penalty for failure to include reportable transaction information with return

Cited by: none

## Amendments

- 1984-07-18: [Pub. L. 98-369](/26/act/98-369.md), 98 Stat. 680
- 1986-10-22: [Pub. L. 99-514](/26/act/99-514.md), 100 Stat. 2750
- 1997-08-05: [Pub. L. 105-34](/26/act/105-34.md), 111 Stat. 927
- 2004-10-22: [Pub. L. 108-357](/26/act/108-357.md), 118 Stat. 1583