# 26 U.S.C. § 6724: Waiver; definitions and special rules Source: OLRC release point 119-134 . Cite pinpoints as 26 U.S.C. § 6724(a)(1). ## § 6724(a) Reasonable cause waiver No 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. ## § 6724(b) Payment of penalty Any penalty imposed by this part shall be paid on notice and demand by the Secretary and in the same manner as tax. ## § 6724(c) Special rule for failure to meet magnetic media requirements No 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). ## § 6724(d) Definitions For purposes of this part— **§ 6724(d)(1) Information return.** The term “information return” means— **§ 6724(d)(1)(A)** any statement of the amount of payments to another person required by— **§ 6724(d)(1)(A)(i)** section 6041(a) or (b) (relating to certain information at source), **§ 6724(d)(1)(A)(ii)** section 6042(a)(1) (relating to payments of dividends), **§ 6724(d)(1)(A)(iii)** section 6044(a)(1) (relating to payments of patronage dividends), **§ 6724(d)(1)(A)(iv)** section 6049(a) (relating to payments of interest), **§ 6724(d)(1)(A)(v)** section 6050A(a) (relating to reporting requirements of certain fishing boat operators), **§ 6724(d)(1)(A)(vi)** section 6050N(a) (relating to payments of royalties), **§ 6724(d)(1)(A)(vii)** section 6051(d) (relating to information returns with respect to income tax withheld), **§ 6724(d)(1)(A)(viii)** section 6050R (relating to returns relating to certain purchases of fish), or **§ 6724(d)(1)(A)(ix)** section 110(d) (relating to qualified lessee construction allowances for short-term leases), **§ 6724(d)(1)(B)** any return required by— **§ 6724(d)(1)(B)(i)** section 6041A(a) or (b) (relating to returns of direct sellers), **§ 6724(d)(1)(B)(ii)** section 6043A(a) (relating to returns relating to taxable mergers and acquisitions), **§ 6724(d)(1)(B)(iii)** section 6045(a) or (d) (relating to returns of brokers), **§ 6724(d)(1)(B)(iv)** section 6045B(a) (relating to returns relating to actions affecting basis of specified securities), **§ 6724(d)(1)(B)(v)** section 6050H(a) or (h)(1) (relating to mortgage interest received in trade or business from individuals), **§ 6724(d)(1)(B)(vi)** section 6050I(a) or (g)(1) (relating to cash received in trade or business, etc.), **§ 6724(d)(1)(B)(vii)** section 6050J(a) (relating to foreclosures and abandonments of security), **§ 6724(d)(1)(B)(viii)** section 6050K(a) (relating to exchanges of certain partnership interests), **§ 6724(d)(1)(B)(ix)** section 6050L(a) (relating to returns relating to certain dispositions of donated property), **§ 6724(d)(1)(B)(x)** section 6050P (relating to returns relating to the cancellation of indebtedness by certain financial entities), **§ 6724(d)(1)(B)(xi)** section 6050Q (relating to certain long-term care benefits), **§ 6724(d)(1)(B)(xii)** section 6050S (relating to returns relating to payments for qualified tuition and related expenses), **§ 6724(d)(1)(B)(xiii)** section 6050T (relating to returns relating to credit for health insurance costs of eligible individuals), **§ 6724(d)(1)(B)(xiv)** section 6052(a) (relating to reporting payment of wages in the form of group-life insurance), **§ 6724(d)(1)(B)(xv)** section 6050V (relating to returns relating to applicable insurance contracts in which certain exempt organizations hold interests), **§ 6724(d)(1)(B)(xvi)** section 6053(c)(1) (relating to reporting with respect to certain tips), **§ 6724(d)(1)(B)(xvii)** subsection (b) or (e) of section 1060 (relating to reporting requirements of transferors and transferees in certain asset acquisitions), **§ 6724(d)(1)(B)(xviii)** section 4101(d) (relating to information reporting with respect to fuels taxes), **§ 6724(d)(1)(B)(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), **§ 6724(d)(1)(B)(xx)** section 264(f)(5)(A)(iv) (relating to reporting with respect to certain life insurance and annuity contracts), **§ 6724(d)(1)(B)(xxi)** section 6050U (relating to charges or payments for qualified long-term care insurance contracts under combined arrangements), **§ 6724(d)(1)(B)(xxii)** section 6039(a) (relating to returns required with respect to certain options), **§ 6724(d)(1)(B)(xxiii)** section 6050W (relating to returns to payments made in settlement of payment card transactions), **§ 6724(d)(1)(B)(xxiv)** section 6055 (relating to returns relating to information regarding health insurance coverage), **§ 6724(d)(1)(B)(xxv)** section 6056 (relating to returns relating to certain employers required to report on health insurance coverage), **§ 6724(d)(1)(B)(xxvi)** section 6050Y (relating to returns relating to certain life insurance contract transactions), **§ 6724(d)(1)(B)(xxvii)** section 6045A(d) (relating to returns for certain digital assets), **§ 6724(d)(1)(B)(xxviii)** section 6050Z (relating to reports relating to long-term care premium statements), or **§ 6724(d)(1)(B)(xxix)** section 6050AA(a) (relating to returns relating to applicable passenger vehicle loan interest received in trade or business from individuals), **§ 6724(d)(1)(C)** any statement of the amount of payments to another person required to be made to the Secretary under— **§ 6724(d)(1)(C)(i)** section 408(i) (relating to reports with respect to individual retirement accounts or annuities), or **§ 6724(d)(1)(C)(ii)** section 6047(d) (relating to reports by employers, plan administrators, etc.), and **§ 6724(d)(1)(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). **§ 6724(d)(2) Payee statement.** The term “payee statement” means any statement required to be furnished under— **§ 6724(d)(2)(A)** section 6031(b) or (c), 6034A, or 6037(b) (relating to statements furnished by certain pass-thru entities), **§ 6724(d)(2)(B)** section 6039(b) (relating to information required in connection with certain options), **§ 6724(d)(2)(C)** section 6041(d) (relating to information at source), **§ 6724(d)(2)(D)** section 6041A(e) (relating to returns regarding payments of remuneration for services and direct sales), **§ 6724(d)(2)(E)** section 6042(c) (relating to returns regarding payments of dividends and corporate earnings and profits), **§ 6724(d)(2)(F)** subsections (b) and (d) of section 6043A (relating to returns relating to taxable mergers and acquisitions), **§ 6724(d)(2)(G)** section 6044(e) (relating to returns regarding payments of patronage dividends), **§ 6724(d)(2)(H)** section 6045(b) or (d) (relating to returns of brokers), **§ 6724(d)(2)(I)** section 6045A (relating to information required in connection with transfers of covered securities to brokers), **§ 6724(d)(2)(J)** subsections (c) and (e) of section 6045B (relating to returns relating to actions affecting basis of specified securities), **§ 6724(d)(2)(K)** section 6049(c) (relating to returns regarding payments of interest), **§ 6724(d)(2)(L)** section 6050A(b) (relating to reporting requirements of certain fishing boat operators), **§ 6724(d)(2)(M)** section 6050H(d) or (h)(2) (relating to returns relating to mortgage interest received in trade or business from individuals), **§ 6724(d)(2)(N)** section 6050I(e) or paragraph (4) or (5) of section 6050I(g) (relating to cash received in trade or business, etc.), **§ 6724(d)(2)(O)** section 6050J(e) (relating to returns relating to foreclosures and abandonments of security), **§ 6724(d)(2)(P)** section 6050K(b) (relating to returns relating to exchanges of certain partnership interests), **§ 6724(d)(2)(Q)** section 6050L(c) (relating to returns relating to certain dispositions of donated property), **§ 6724(d)(2)(R)** section 6050N(b) (relating to returns regarding payments of royalties), **§ 6724(d)(2)(S)** section 6050P(d) (relating to returns relating to the cancellation of indebtedness by certain financial entities), **§ 6724(d)(2)(T)** section 6050Q(b) (relating to certain long-term care benefits), **§ 6724(d)(2)(U)** section 6050R(c) (relating to returns relating to certain purchases of fish), **§ 6724(d)(2)(V)** section 6051 (relating to receipts for employees), **§ 6724(d)(2)(W)** section 6052(b) (relating to returns regarding payment of wages in the form of group-term life insurance), **§ 6724(d)(2)(X)** section 6053(b) or (c) (relating to reports of tips), **§ 6724(d)(2)(Y)** section 6048(b)(1)(B) (relating to foreign trust reporting requirements), **§ 6724(d)(2)(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, **§ 6724(d)(2)(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, **§ 6724(d)(2)(BB)** section 6050S(d) (relating to returns relating to qualified tuition and related expenses), **§ 6724(d)(2)(CC)** section 264(f)(5)(A)(iv) (relating to reporting with respect to certain life insurance and annuity contracts), **§ 6724(d)(2)(DD)** section 6050T (relating to returns relating to credit for health insurance costs of eligible individuals), **§ 6724(d)(2)(EE)** section 6050U (relating to charges or payments for qualified long-term care insurance contracts under combined arrangements), **§ 6724(d)(2)(FF)** section 6050W(f) (relating to returns relating to payments made in settlement of payment card transactions), **§ 6724(d)(2)(GG)** section 6055(c) (relating to statements relating to information regarding health insurance coverage), **§ 6724(d)(2)(HH)** section 6056(c) (relating to statements relating to certain employers required to report on health insurance coverage), **§ 6724(d)(2)(II)** section 6035 (other than a statement described in paragraph (1)(D)), **§ 6724(d)(2)(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, **§ 6724(d)(2)(KK)** subsection (a)(2), (b)(2), or (c)(2) of section 6050Y (relating to returns relating to certain life insurance contract transactions), **§ 6724(d)(2)(LL)** section 6050Z (relating to reports relating to long-term care premium statements), **§ 6724(d)(2)(MM)** section 6050AA(c) (relating to statements relating to applicable passenger vehicle loan interest received in trade or business from individuals), **§ 6724(d)(2)(NN)** section 6039K(c) (relating to disposition of qualified opportunity fund investments), or **§ 6724(d)(2)(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). **§ 6724(d)(3) Specified information reporting requirement.** The term “specified information reporting requirement” means— **§ 6724(d)(3)(A)** the notice required by section 6050K(c)(1) (relating to requirement that transferor notify partnership of exchange), **§ 6724(d)(3)(B)** any requirement contained in the regulations prescribed under section 6109 that a person— **§ 6724(d)(3)(B)(i)** include his TIN on any return, statement, or other document (other than an information return or payee statement), **§ 6724(d)(3)(B)(ii)** furnish his TIN to another person, or **§ 6724(d)(3)(B)(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, [OLRC note: So in original. Probably should be followed by “and”.] **§ 6724(d)(3)(C)** any requirement under section 6109(h) that— **§ 6724(d)(3)(C)(i)** a person include on his return the name, address, and TIN of another person, or **§ 6724(d)(3)(C)(ii)** a person furnish his TIN to another person. **§ 6724(d)(4) Required filing date.** The 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). ## § 6724(e) Special rule for certain partnership returns If 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. ## § 6724(f) Special rule for returns of educational institutions related to higher education tuition and related expenses No 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. ## § 6724(g) Special rule for reporting certain additional taxes No penalty shall be imposed under section 6721 or 6722 if— **§ 6724(g)(1)** a person makes a return or report under section 6047(d) or 408(i) with respect to any distribution, **§ 6724(g)(2)** such distribution is made following a rollover, transfer, or exchange described in section 72(t)(4)(C) or section 72(q)(3)(C), **§ 6724(g)(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 **§ 6724(g)(4)** such person does not have actual knowledge that the distributions do not satisfy such requirements. ## Regulations - [Treas. Reg. § 301.6724-1](/26/reg/301.6724-1.md): Reasonable cause. (interprets § 6724) ## Forms named in the regulations - [Form 1099-INT](https://www.irs.gov/pub/irs-pdf/f1099int.pdf) - [Form W-9](https://www.irs.gov/pub/irs-pdf/fw9.pdf) ## Final rules - [88 FR 87696](https://www.federalregister.gov/documents/2023/12/19/2023-27283/de-minimis-error-safe-harbor-exceptions-to-penalties-for-failure-to-file-correct-information-returns) (2023): De Minimis Error Safe Harbor Exceptions to Penalties for Failure To File Correct Information Returns or Furnish Correct Payee Statements - [79 FR 63811](https://www.federalregister.gov/documents/2014/10/27/2014-25475/removal-of-the-qualified-payment-card-agent-program) (2014): Removal of the Qualified Payment Card Agent Program - [69 FR 41938](https://www.federalregister.gov/documents/2004/07/13/04-15751/information-reporting-and-backup-withholding-for-payment-card-transactions) (2004): Information Reporting and Backup Withholding for Payment Card Transactions - [69 FR 7567](https://www.federalregister.gov/documents/2004/02/18/04-3544/electronic-payee-statements) (2004): Electronic Payee Statements - [68 FR 22594](https://www.federalregister.gov/documents/2003/04/29/03-10403/receipt-of-multiple-notices-with-respect-to-incorrect-taxpayer-identification-numbers) (2003): Receipt of Multiple Notices With Respect to Incorrect Taxpayer Identification Numbers - [62 FR 53387](https://www.federalregister.gov/documents/1997/10/14/97-25998/general-revision-of-regulations-relating-to-withholding-of-tax-on-certain-us-source-income-paid-to) (1997): General Revision of Regulations Relating to Withholding of Tax on Certain U.S. Source Income Paid to Foreign Persons and Related Collection, Refunds, and Credits; Revision of Information Reporting and Backup Withholding Regulations; and Removal of Regulations Under Part 35a and of Certain Regulations Under Income Tax Treaties ## Leading cases - [Gerald B. Lefcourt, P.C. v. United States, 125 F.3d 79 (2d Cir. 1997)](https://www.courtlistener.com/opinion/746429/gerald-b-lefcourt-pc-v-united-states/) - [Weber v. Leaseway Dedicated Logistics, Inc., 166 F.3d 1223 (10th Cir. 1999)](https://www.courtlistener.com/opinion/761485/don-m-weber-ii-v-leaseway-dedicated-logistics-inc-/) ## Proposed regulations (not in force) - [Prop. Treas. Reg. § 301.6724-1](/26/prop/301.6724-1_01-1293.md): Reasonable cause. (REG-107186-00, proposed 2001-02-14) - [Prop. Treas. Reg. § 301.6724-1](/26/prop/301.6724-1_03-17229.md): Reasonsable cause. (REG-141669-02, proposed 2003-07-09) - [Prop. Treas. Reg. § 301.6724-1](/26/prop/301.6724-1_2016-18032.md): Reasonable cause. (REG-131418-14, proposed 2016-08-02) - [Prop. Treas. Reg. § 301.6724-1](/26/prop/301.6724-1_2016-18100.md): Reasonable cause. (REG-103058-16, proposed 2016-08-02) - [Prop. Treas. Reg. § 301.6724-1](/26/prop/301.6724-1_2026-18574.md): Reasonable cause. (REG-115420-18, proposed 2026-09-11) ## Connections Cites: § 72 Annuities; certain proceeds of endowment and life insurance contracts; § 110 Qualified lessee construction allowances for short-term leases; § 264 Certain amounts paid in connection with insurance contracts; § 338 Certain stock purchases treated as asset acquisitions; § 408 Individual retirement accounts; § 1060 Special allocation rules for certain asset acquisitions; § 4101 Registration and bond; § 6011 General requirement of return, statement, or list; § 6031 Return of partnership income; § 6035 Basis information to persons acquiring property from decedent; § 6039 Returns required in connection with certain options; § 6039K Returns with respect to qualified opportunity funds and qualified rural opportunity funds; § 6039L Information required from qualified opportunity zone businesses and qualified rural opportunity zone businesses; § 6041 Information at source; § 6041A Returns regarding payments of remuneration for services and direct sales; § 6042 Returns regarding payments of dividends and corporate earnings and profits; § 6043A Returns relating to taxable mergers and acquisitions; § 6044 Returns regarding payments of patronage dividends; § 6045 Returns of brokers; § 6045A Information required in connection with transfers of covered securities to brokers; § 6045B Returns relating to actions affecting basis of specified securities; § 6047 Information relating to certain trusts and annuity plans; § 6048 Information with respect to certain foreign trusts; § 6049 Returns regarding payments of interest; § 6050A Reporting requirements of certain fishing boat operators; § 6050H Returns relating to mortgage interest received in trade or business from individuals; § 6050I Returns relating to cash received in trade or business, etc.; § 6050J Returns relating to foreclosures and abandonments of security; § 6050K Returns relating to exchanges of certain partnership interests; § 6050L Returns relating to certain donated property; § 6050N Returns regarding payments of royalties; § 6050P Returns relating to the cancellation of indebtedness by certain entities; § 6050Q Certain long-term care benefits; § 6050R Returns relating to certain purchases of fish; § 6050S Returns relating to higher education tuition and related expenses; § 6050T Returns relating to credit for health insurance costs of eligible individuals; § 6050U Charges or payments for qualified long-term care insurance contracts under combined arrangements; § 6050V Returns relating to applicable insurance contracts in which certain exempt organizations hold interests; § 6050W Returns relating to payments made in settlement of payment card and third party network transactions; § 6050Y Returns relating to certain life insurance contract transactions; § 6050Z Reports relating to long-term care premium statements; § 6051 Receipts for employees; § 6052 Returns regarding payment of wages in the form of group-term life insurance; § 6053 Reporting of tips; § 6055 Reporting of health insurance coverage; § 6056 Certain employers required to report on health insurance coverage; § 6109 Identifying numbers; § 6226 Alternative to payment of imputed underpayment by partnership; § 6721 Failure to file correct information returns Cited by: § 904 Limitation on credit; § 6652 Failure to file certain information returns, registration statements, etc.; § 6693 Failure to provide reports on certain tax-favored accounts or annuities; penalties relating to designated nondeductible contributions; § 6721 Failure to file correct information returns; § 6722 Failure to furnish correct payee statements; § 7434 Civil damages for fraudulent filing of information returns ## Amendments - 1986-10-22: [Pub. L. 99-514](/26/act/99-514.md), 100 Stat. 2734 - 1988-08-23: [Pub. L. 100-418](/26/act/100-418.md), 102 Stat. 1323 - 1988-11-10: [Pub. L. 100-647](/26/act/100-647.md), 102 Stat. 3410 - 1989-12-19: [Pub. L. 101-239](/26/act/101-239.md), 103 Stat. 2391 - 1990-11-05: [Pub. L. 101-508](/26/act/101-508.md), 104 Stat. 1388 - 1992-10-24: [Pub. L. 102-486](/26/act/102-486.md), 106 Stat. 3031 - 1993-08-10: [Pub. L. 103-66](/26/act/103-66.md), 107 Stat. 532 - 1994-09-13: [Pub. L. 103-322](/26/act/103-322.md), 108 Stat. 1833 - 1996-08-20: [Pub. L. 104-188](/26/act/104-188.md), 110 Stat. 1764 - 1996-08-21: [Pub. L. 104-191](/26/act/104-191.md), 110 Stat. 2062 - 1997-08-05: [Pub. L. 105-34](/26/act/105-34.md), 111 Stat. 805 - 1998-07-22: [Pub. L. 105-206](/26/act/105-206.md), 112 Stat. 792 - 2000-12-21: [Pub. L. 106-554](/26/act/106-554.md), 114 Stat. 2763 - 2002-08-06: [Pub. L. 107-210](/26/act/107-210.md), 116 Stat. 962 - 2004-10-22: [Pub. L. 108-357](/26/act/108-357.md), 118 Stat. 1574 - 2006-08-17: [Pub. L. 109-280](/26/act/109-280.md), 120 Stat. 1012 - 2006-12-20: [Pub. L. 109-432](/26/act/109-432.md), 120 Stat. 2955 - 2007-12-29: [Pub. L. 110-172](/26/act/110-172.md), 121 Stat. 2488 - 2008-07-30: [Pub. L. 110-289](/26/act/110-289.md), 122 Stat. 2910 - 2008-10-03: [Pub. L. 110-343](/26/act/110-343.md), 122 Stat. 3858 - 2010-03-18: [Pub. L. 111-147](/26/act/111-147.md), 124 Stat. 106 - 2010-03-23: [Pub. L. 111-148](/26/act/111-148.md), 124 Stat. 251 - 2014-12-19: [Pub. L. 113-295](/26/act/113-295.md), 128 Stat. 4036 - 2015-06-29: [Pub. L. 114-27](/26/act/114-27.md), 129 Stat. 416 - 2015-07-31: [Pub. L. 114-41](/26/act/114-41.md), 129 Stat. 456 - 2017-12-22: [Pub. L. 115-97](/26/act/115-97.md), 131 Stat. 2089 - 2018-03-23: [Pub. L. 115-141](/26/act/115-141.md), 132 Stat. 1182 - 2019-07-01: [Pub. L. 116-25](/26/act/116-25.md), 133 Stat. 1013 - 2021-11-15: [Pub. L. 117-58](/26/act/117-58.md), 135 Stat. 1340 - 2022-12-29: [Pub. L. 117-328](/26/act/117-328.md), 136 Stat. 5357 - 2025-07-04: [Pub. L. 119-21](/26/act/119-21.md), 139 Stat. 179