TITLE 26 - US CODE - PART I - GENERAL PROVISIONS

26 USC 6671 - Rules for application of assessable penalties

(a) Penalty assessed as tax 
The penalties and liabilities provided by this subchapter shall be paid upon notice and demand by the Secretary, and shall be assessed and collected in the same manner as taxes. Except as otherwise provided, any reference in this title to tax imposed by this title shall be deemed also to refer to the penalties and liabilities provided by this subchapter.
(b) Person defined 
The term person, as used in this subchapter, includes an officer or employee of a corporation, or a member or employee of a partnership, who as such officer, employee, or member is under a duty to perform the act in respect of which the violation occurs.

26 USC 6672 - Failure to collect and pay over tax, or attempt to evade or defeat tax

(a) General rule 
Any person required to collect, truthfully account for, and pay over any tax imposed by this title who willfully fails to collect such tax, or truthfully account for and pay over such tax, or willfully attempts in any manner to evade or defeat any such tax or the payment thereof, shall, in addition to other penalties provided by law, be liable to a penalty equal to the total amount of the tax evaded, or not collected, or not accounted for and paid over. No penalty shall be imposed under section 6653 or part II of subchapter A of chapter 68 for any offense to which this section is applicable.
(b) Preliminary notice requirement 

(1) In general 
No penalty shall be imposed under subsection (a) unless the Secretary notifies the taxpayer in writing by mail to an address as determined under section 6212 (b) or in person that the taxpayer shall be subject to an assessment of such penalty.
(2) Timing of notice 
The mailing of the notice described in paragraph (1) (or, in the case of such a notice delivered in person, such delivery) shall precede any notice and demand of any penalty under subsection (a) by at least 60 days.
(3) Statute of limitations 
If a notice described in paragraph (1) with respect to any penalty is mailed or delivered in person before the expiration of the period provided by section 6501 for the assessment of such penalty (determined without regard to this paragraph), the period provided by such section for the assessment of such penalty shall not expire before the later of
(A) the date 90 days after the date on which such notice was mailed or delivered in person, or
(B) if there is a timely protest of the proposed assessment, the date 30 days after the Secretary makes a final administrative determination with respect to such protest.
(4) Exception for jeopardy 
This subsection shall not apply if the Secretary finds that the collection of the penalty is in jeopardy.
(c) Extension of period of collection where bond is filed 

(1) In general 
If, within 30 days after the day on which notice and demand of any penalty under subsection (a) is made against any person, such person
(A) pays an amount which is not less than the minimum amount required to commence a proceeding in court with respect to his liability for such penalty,
(B) files a claim for refund of the amount so paid, and
(C) furnishes a bond which meets the requirements of paragraph (3),

no levy or proceeding in court for the collection of the remainder of such penalty shall be made, begun, or prosecuted until a final resolution of a proceeding begun as provided in paragraph (2). Notwithstanding the provisions of section 7421 (a), the beginning of such proceeding or levy during the time such prohibition is in force may be enjoined by a proceeding in the proper court. Nothing in this paragraph shall be construed to prohibit any counterclaim for the remainder of such penalty in a proceeding begun as provided in paragraph (2).

(2) Suit must be brought to determine liability for penalty 
If, within 30 days after the day on which his claim for refund with respect to any penalty under subsection (a) is denied, the person described in paragraph (1) fails to begin a proceeding in the appropriate United States district court (or in the Court of Claims)[1] for the determination of his liability for such penalty, paragraph (1) shall cease to apply with respect to such penalty, effective on the day following the close of the 30-day period referred to in this paragraph.
(3) Bond 
The bond referred to in paragraph (1) shall be in such form and with such sureties as the Secretary may by regulations prescribe and shall be in an amount equal to 11/2 times the amount of excess of the penalty assessed over the payment described in paragraph (1).
(4) Suspension of running of period of limitations on collection 
The running of the period of limitations provided in section 6502 on the collection by levy or by a proceeding in court in respect of any penalty described in paragraph (1) shall be suspended for the period during which the Secretary is prohibited from collecting by levy or a proceeding in court.
(5) Jeopardy collection 
If the Secretary makes a finding that the collection of the penalty is in jeopardy, nothing in this subsection shall prevent the immediate collection of such penalty.
(d) Right of contribution where more than 1 person liable for penalty 
If more than 1 person is liable for the penalty under subsection (a) with respect to any tax, each person who paid such penalty shall be entitled to recover from other persons who are liable for such penalty an amount equal to the excess of the amount paid by such person over such persons proportionate share of the penalty. Any claim for such a recovery may be made only in a proceeding which is separate from, and is not joined or consolidated with
(1) an action for collection of such penalty brought by the United States, or
(2) a proceeding in which the United States files a counterclaim or third-party complaint for the collection of such penalty.
(e) Exception for voluntary board members of tax-exempt organizations 
No penalty shall be imposed by subsection (a) on any unpaid, volunteer member of any board of trustees or directors of an organization exempt from tax under subtitle A if such member
(1) is solely serving in an honorary capacity,
(2) does not participate in the day-to-day or financial operations of the organization, and
(3) does not have actual knowledge of the failure on which such penalty is imposed.

The preceding sentence shall not apply if it results in no person being liable for the penalty imposed by subsection (a).

[1] See References in Text note below.

26 USC 6673 - Sanctions and costs awarded by courts

(a) Tax court proceedings 

(1) Procedures instituted primarily for delay, etc. 
Whenever it appears to the Tax Court that
(A) proceedings before it have been instituted or maintained by the taxpayer primarily for delay,
(B) the taxpayers position in such proceeding is frivolous or groundless, or
(C) the taxpayer unreasonably failed to pursue available administrative remedies,

the Tax Court, in its decision, may require the taxpayer to pay to the United States a penalty not in excess of $25,000.

(2) Counsel’s liability for excessive costs 
Whenever it appears to the Tax Court that any attorney or other person admitted to practice before the Tax Court has multiplied the proceedings in any case unreasonably and vexatiously, the Tax Court may require
(A) that such attorney or other person pay personally the excess costs, expenses, and attorneys fees reasonably incurred because of such conduct, or
(B) if such attorney is appearing on behalf of the Commissioner of Internal Revenue, that the United States pay such excess costs, expenses, and attorneys fees in the same manner as such an award by a district court.
(b) Proceedings in other courts 

(1) Claims under section 7433 
Whenever it appears to the court that the taxpayers position in the proceedings before the court instituted or maintained by such taxpayer under section 7433 is frivolous or groundless, the court may require the taxpayer to pay to the United States a penalty not in excess of $10,000.
(2) Collection of sanctions and costs 
In any civil proceeding before any court (other than the Tax Court) which is brought by or against the United States in connection with the determination, collection, or refund of any tax, interest, or penalty under this title, any monetary sanctions, penalties, or costs awarded by the court to the United States may be assessed by the Secretary and, upon notice and demand, may be collected in the same manner as a tax.
(3) Sanctions and costs awarded by a court of appeals 
In connection with any appeal from a proceeding in the Tax Court or a civil proceeding described in paragraph (2), an order of a United States Court of Appeals or the Supreme Court awarding monetary sanctions, penalties or court costs to the United States may be registered in a district court upon filing a certified copy of such order and shall be enforceable as other district court judgments. Any such sanctions, penalties, or costs may be assessed by the Secretary and, upon notice and demand, may be collected in the same manner as a tax.

26 USC 6674 - Fraudulent statement or failure to furnish statement to employee

In addition to the criminal penalty provided by section 7204, any person required under the provisions of section 6051 or 6053 (b) to furnish a statement to an employee who willfully furnishes a false or fraudulent statement, or who willfully fails to furnish a statement in the manner, at the time, and showing the information required under section 6051 or 6053 (b), or regulations prescribed thereunder, shall for each such failure be subject to a penalty under this subchapter of $50, which shall be assessed and collected in the same manner as the tax on employers imposed by section 3111.

26 USC 6675 - Excessive claims with respect to the use of certain fuels

(a) Civil penalty 
In addition to any criminal penalty provided by law, if a claim is made under section 6416 (a)(4) (relating to certain sales of gasoline), section 6420 (relating to gasoline used on farms), 6421 (relating to gasoline used for certain nonhighway purposes or by local transit systems), or 6427 (relating to fuels not used for taxable purposes) for an excessive amount, unless it is shown that the claim for such excessive amount is due to reasonable cause, the person making such claim shall be liable to a penalty in an amount equal to whichever of the following is the greater:
(1) Two times the excessive amount; or
(2) $10.
(b) Excessive amount defined 
For purposes of this section, the term excessive amount means in the case of any person the amount by which
(1) the amount claimed under section 6416 (a)(4), 6420, 6421, or 6427, as the case may be, for any period, exceeds
(2) the amount allowable under such section for such period.
(c) Assessment and collection of penalty 
For assessment and collection of penalty provided by subsection (a), see section 6206.

26 USC 6676 - Erroneous claim for refund or credit

(a) Civil penalty 
If a claim for refund or credit with respect to income tax (other than a claim for a refund or credit relating to the earned income credit under section 32) is made for an excessive amount, unless it is shown that the claim for such excessive amount has a reasonable basis, the person making such claim shall be liable for a penalty in an amount equal to 20 percent of the excessive amount.
(b) Excessive amount 
For purposes of this section, the term excessive amount means in the case of any person the amount by which the amount of the claim for refund or credit for any taxable year exceeds the amount of such claim allowable under this title for such taxable year.
(c) Coordination with other penalties 
This section shall not apply to any portion of the excessive amount of a claim for refund or credit which is subject to a penalty imposed under part II of subchapter A of chapter 68.

26 USC 6677 - Failure to file information with respect to certain foreign trusts

(a) Civil penalty 
In addition to any criminal penalty provided by law, if any notice or return required to be filed by section 6048
(1) is not filed on or before the time provided in such section, or
(2) does not include all the information required pursuant to such section or includes incorrect information,

the person required to file such notice or return shall pay a penalty equal to 35 percent of the gross reportable amount. If any failure described in the preceding sentence continues for more than 90 days after the day on which the Secretary mails notice of such failure to the person required to pay such penalty, such person shall pay a penalty (in addition to the amount determined under the preceding sentence) of $10,000 for each 30-day period (or fraction thereof) during which such failure continues after the expiration of such 90-day period. In no event shall the penalty under this subsection with respect to any failure exceed the gross reportable amount.

(b) Special rules for returns under section 6048 (b) 
In the case of a return required under section 6048 (b)
(1) the United States person referred to in such section shall be liable for the penalty imposed by subsection (a), and
(2) subsection (a) shall be applied by substituting 5 percent for 35 percent.
(c) Gross reportable amount 
For purposes of subsection (a), the term gross reportable amount means
(1) the gross value of the property involved in the event (determined as of the date of the event) in the case of a failure relating to section 6048 (a),
(2) the gross value of the portion of the trusts assets at the close of the year treated as owned by the United States person in the case of a failure relating to section 6048 (b)(1), and
(3) the gross amount of the distributions in the case of a failure relating to section 6048 (c).
(d) Reasonable cause exception 
No penalty shall be imposed by this section on any failure which is shown to be due to reasonable cause and not due to willful neglect. The fact that a foreign jurisdiction would impose a civil or criminal penalty on the taxpayer (or any other person) for disclosing the required information is not reasonable cause.
(e) 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).

26 USC 6678 - Repealed. Pub. L. 99514, title XV, 1501(d)(2), Oct. 22, 1986, 100 Stat. 2740]

Section, added Pub. L. 87–834, § 19(e), Oct. 16, 1962, 76 Stat. 1058; amended Pub. L. 88–272, title II, §§ 204(c)(2), 221 (b)(3), Feb. 26, 1964, 78 Stat. 37, 75; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 96–167, § 7(b)(2), Dec. 29, 1979, 93 Stat. 1277; Pub. L. 97–34, title VII, § 723(a)(2), (b)(2), Aug. 13, 1981, 95 Stat. 343, 344; Pub. L. 97–248, title III, §§ 309(b)(3), 311 (a)(2), 312 (b), 314 (b), 315 (c), Sept. 3, 1982, 96 Stat. 595, 600, 602, 605, 607; Pub. L. 97–448, title II, § 201(i)(3), Jan. 12, 1983, 96 Stat. 2395; Pub. L. 98–67, title I, § 105(b)(2), Aug. 5, 1983, 97 Stat. 381; Pub. L. 98–369, div. A, title I, 145(b)(3), 146 (b)(3), 148 (b)(3), 149 (b)(2), (3), 155 (b)(2)(B), title VII, 714(f), (q)(3), July 18, 1984, 98 Stat. 685, 686, 689, 690, 693, 961, 966; Pub. L. 99–514, title XVIII, § 1811(c)(1), Oct. 22, 1986, 100 Stat. 2833, related to penalties for failure to furnish certain statements.

26 USC 6679 - Failure to file returns, etc., with respect to foreign corporations or foreign partnerships

(a) Civil penalty 

(1) In general 
In addition to any criminal penalty provided by law, any person required to file a return under section[1] 6046 and 6046A who fails to file such return at the time provided in such section, or who files a return which does not show the information required pursuant to such section, shall pay a penalty of $10,000, unless it is shown that such failure is due to reasonable cause.
(2) Increase in penalty where failure continues after notification 
If any failure described in paragraph (1) continues for more than 90 days after the day on which the Secretary mails notice of such failure to the United States person, such person shall pay a penalty (in addition to the amount required under paragraph (1)) of $10,000 for each 30-day period (or fraction thereof) during which such failure continues after the expiration of such 90-day period. The increase in any penalty under this paragraph shall not exceed $50,000.
(b) Deficiency procedures not to apply 
Subchapter B of chapter 63 (relating to deficiency procedure 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).
[1] So in original. Probably should be “sections”.

26 USC 6680 - Repealed. Pub. L. 94455, title XIX, 1904(b)(10)(A)(vi)(I), Oct. 4, 1976, 90 Stat. 1817]

Section, added Pub. L. 88–563, § 6(a), Sept. 2, 1964, 78 Stat. 845; amended Pub. L. 91–128, § 4(h)(1), Nov. 26, 1969, 83 Stat. 268; Pub. L. 92–9, § 3(j)(2), Apr. 1, 1971, 85 Stat. 22, related to failure to file interest equalization tax returns.

26 USC 6681 - Repealed. Pub. L. 94455, title XIX, 1904(b)(10)(D)(i), Oct. 4, 1976, 90 Stat. 1817]

Section, added Pub. L. 88–563, § 6(a), Sept. 2, 1964, 78 Stat. 845; amended Pub. L. 90–59, § 4(d), July 1, 1967, 81 Stat. 155; Pub. L. 90–73, § 2(d), Aug. 29, 1967, 81 Stat. 176; Pub. L. 92–9, § 3(k)(1)(3), Apr. 1, 1971, 85 Stat. 22, related to false equalization tax certificates.

26 USC 6682 - False information with respect to withholding

(a) Civil penalty 
In addition to any criminal penalty provided by law, if
(1) any individual makes a statement under section 3402 or section 3406 which results in a decrease in the amounts deducted and withheld under chapter 24, and
(2) as of the time such statement was made, there was no reasonable basis for such statement,

such individual shall pay a penalty of $500 for such statement.

(b) Exception 
The Secretary may waive (in whole or in part) the penalty imposed under subsection (a) if the taxes imposed with respect to the individual under subtitle A for the taxable year are equal to or less than the sum of
(1) the credits against such taxes allowed by part IV of subchapter A of chapter 1, and
(2) the payments of estimated tax which are considered payments on account of such taxes.
(c) 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 to the assessment or collection of any penalty imposed by subsection (a).

26 USC 6683 - Repealed. Pub. L. 109135, title IV, 403(n)(3)(A), Dec. 21, 2005, 119 Stat. 2626]

Section, added Pub. L. 89–809, title I, § 104(h)(4)(A), Nov. 13, 1966, 80 Stat. 1560; amended Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 105–34, title XII, § 1281(c), Aug. 5, 1997, 111 Stat. 1037, related to failure of foreign corporation to file return of personal holding company tax.

26 USC 6684 - Assessable penalties with respect to liability for tax under chapter 42

If any person becomes liable for tax under any section of chapter 42 (relating to private foundations and certain other tax-exempt organizations) by reason of any act or failure to act which is not due to reasonable cause and either
(1) such person has theretofore been liable for tax under such chapter, or
(2) such act or failure to act is both willful and flagrant,

then such person shall be liable for a penalty equal to the amount of such tax.

26 USC 6685 - Assessable penalty with respect to public inspection requirements for certain tax-exempt organizations

In addition to the penalty imposed by section 7207 (relating to fraudulent returns, statements, or other documents), any person who is required to comply with the requirements of subsection (d) of section 6104 and who fails to so comply with respect to any return or application, if such failure is willful, shall pay a penalty of $5,000 with respect to each such return or application.

26 USC 6686 - Failure to file returns or supply information by DISC or former FSC

In addition to the penalty imposed by section 7203 (relating to willful failure to file return, supply information, or pay tax) any person required to supply information or to file a return under section 6011 (c) who fails to supply such information or file such return at the time prescribed by the Secretary, or who files a return which does not show the information required, shall pay a penalty of $100 for each failure to supply information (but the total amount imposed on the delinquent person for all such failures during any calendar year shall not exceed $25,000) or a penalty of $1,000 for each failure to file a return, unless it is shown that such failure is due to reasonable cause.

26 USC 6687 - Repealed. Pub. L. 101239, title VII, 7711(b)(1), Dec. 19, 1989, 103 Stat. 2393]

Section, added Pub. L. 92–512, title I, § 144(b)(1), Oct. 20, 1972, 86 Stat. 936, related to failure to supply information with respect to place of residence.

26 USC 6688 - Assessable penalties with respect to information required to be furnished under section 7654

In addition to any criminal penalty provided by law, any person described in section 7654 (a) who is required under section 937 (c) or by regulations prescribed under section 7654 to furnish information and who fails to comply with such requirement at the time prescribed by such regulations unless it is shown that such failure is due to reasonable cause and not to willful neglect, shall pay (upon notice and demand by the Secretary and in the same manner as tax) a penalty of $1,000 for each such failure.

26 USC 6689 - Failure to file notice of redetermination of foreign tax

(a) Civil penalty 
If the taxpayer fails to notify the Secretary (on or before the date prescribed by regulations for giving such notice) of a foreign tax redetermination, unless it is shown that such failure is due to reasonable cause and not due to willful neglect, there shall be added to the deficiency attributable to such redetermination an amount (not in excess of 25 percent of the deficiency) determined as follows
(1) 5 percent of the deficiency if the failure is for not more than 1 month, with
(2) an additional 5 percent of the deficiency for each month (or fraction thereof) during which the failure continues.
(b) Foreign tax redetermination defined 
For purposes of this section, the term foreign tax redetermination means any redetermination for which a notice is required under subsection (c) of section 905 or paragraph (2) of section 404A (g).

26 USC 6690 - Fraudulent statement or failure to furnish statement to plan participant

Any person required under section 6057 (e) to furnish a statement to a participant who willfully furnishes a false or fraudulent statement, or who willfully fails to furnish a statement in the manner, at the time, and showing the information required under section 6057 (e), or regulations prescribed thereunder, shall for each such act, or for each such failure, be subject to a penalty under this subchapter of $50, which shall be assessed and collected in the same manner as the tax on employers imposed by section 3111.

26 USC 6691 - Reserved]

26 USC 6692 - Failure to file actuarial report

The plan administrator (as defined in section 414(g)) of each defined benefit plan to which section 412 applies who fails to file the report required by section 6059 at the time and in the manner required by section 6059, shall pay a penalty of $1,000 for each such failure unless it is shown that such failure is due to reasonable cause.

26 USC 6693 - Failure to provide reports on certain tax-favored accounts or annuities; penalties relating to designated nondeductible contributions

(a) Reports 

(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
(A) subsections (i) and (l) of section 408 (relating to individual retirement plans),
(B) section 220 (h) (relating to Archer MSAs),
(C) section 223 (h) (relating to health savings accounts),
(D) section 529 (d) (relating to qualified tuition programs), and
(E) section 530 (h) (relating to Coverdell education savings accounts).

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 

(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.
(c) Penalties relating to simple retirement accounts 

(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
(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.

26 USC 6694 - Understatement of taxpayers liability by tax return preparer

(a) Understatement due to unreasonable positions 

(1) In general 
Any tax return preparer who prepares any return or claim for refund with respect to which any part of an understatement of liability is due to a position described in paragraph (2) shall pay a penalty with respect to each such return or claim in an amount equal to the greater of
(A) $1,000, or
(B) 50 percent of the income derived (or to be derived) by the tax return preparer with respect to the return or claim.
(2) Unreasonable position 
A position is described in this paragraph if
(A) the tax return preparer knew (or reasonably should have known) of the position,
(B) there was not a reasonable belief that the position would more likely than not be sustained on its merits, and
(C) 
(i) the position was not disclosed as provided in section 6662 (d)(2)(B)(ii), or
(ii) there was no reasonable basis for the position.
(3) Reasonable cause exception 
No penalty shall be imposed under this subsection if it is shown that there is reasonable cause for the understatement and the tax return preparer acted in good faith.
(b) Understatement due to willful or reckless conduct 

(1) In general 
Any tax return preparer who prepares any return or claim for refund with respect to which any part of an understatement of liability is due to a conduct described in paragraph (2) shall pay a penalty with respect to each such return or claim in an amount equal to the greater of
(A) $5,000, or
(B) 50 percent of the income derived (or to be derived) by the tax return preparer with respect to the return or claim.
(2) Willful or reckless conduct 
Conduct described in this paragraph is conduct by the tax return preparer which is
(A) a willful attempt in any manner to understate the liability for tax on the return or claim, or
(B) a reckless or intentional disregard of rules or regulations.
(3) Reduction in penalty 
The amount of any penalty payable by any person by reason of this subsection for any return or claim for refund shall be reduced by the amount of the penalty paid by such person by reason of subsection (a).
(c) Extension of period of collection where preparer pays 15 percent of penalty 

(1) In general 
If, within 30 days after the day on which notice and demand of any penalty under subsection (a) or (b) is made against any person who is a tax return preparer, such person pays an amount which is not less than 15 percent of the amount of such penalty and files a claim for refund of the amount so paid, no levy or proceeding in court for the collection of the remainder of such penalty shall be made, begun, or prosecuted until the final resolution of a proceeding begun as provided in paragraph (2). Notwithstanding the provisions of section 7421 (a), the beginning of such proceeding or levy during the time such prohibition is in force may be enjoined by a proceeding in the proper court. Nothing in this paragraph shall be construed to prohibit any counterclaim for the remainder of such penalty in a proceeding begun as provided in paragraph (2).
(2) Preparer must bring suit in district court to determine his liability for penalty 
If, within 30 days after the day on which his claim for refund of any partial payment of any penalty under subsection (a) or (b) is denied (or, if earlier, within 30 days after the expiration of 6 months after the day on which he filed the claim for refund), the tax return preparer fails to begin a proceeding in the appropriate United States district court for the determination of his liability for such penalty, paragraph (1) shall cease to apply with respect to such penalty, effective on the day following the close of the applicable 30-day period referred to in this paragraph.
(3) Suspension of running of period of limitations on collection 
The running of the period of limitations provided in section 6502 on the collection by levy or by a proceeding in court in respect of any penalty described in paragraph (1) shall be suspended for the period during which the Secretary is prohibited from collecting by levy or a proceeding in court.
(d) Abatement of penalty where taxpayer’s liability not understated 
If at any time there is a final administrative determination or a final judicial decision that there was no understatement of liability in the case of any return or claim for refund with respect to which a penalty under subsection (a) or (b) has been assessed, such assessment shall be abated, and if any portion of such penalty has been paid the amount so paid shall be refunded to the person who made such payment as an overpayment of tax without regard to any period of limitations which, but for this subsection, would apply to the making of such refund.
(e) Understatement of liability defined 
For purposes of this section, the term understatement of liability means any understatement of the net amount payable with respect to any tax imposed by this title or any overstatement of the net amount creditable or refundable with respect to any such tax. Except as otherwise provided in subsection (d), the determination of whether or not there is an understatement of liability shall be made without regard to any administrative or judicial action involving the taxpayer.
(f) Cross reference 
For definition of tax return preparer, see section 7701 (a)(36).

26 USC 6695 - Other assessable penalties with respect to the preparation of tax returns for other persons

(a) Failure to furnish copy to taxpayer 
Any person who is a tax return preparer with respect to any return or claim for refund who fails to comply with section 6107 (a) with respect to such return or claim shall pay a penalty of $50 for such failure, unless it is shown that such failure is due to reasonable cause and not due to willful neglect. The maximum penalty imposed under this subsection on any person with respect to documents filed during any calendar year shall not exceed $25,000.
(b) Failure to sign return 
Any person who is a tax return preparer with respect to any return or claim for refund, who is required by regulations prescribed by the Secretary to sign such return or claim, and who fails to comply with such regulations with respect to such return or claim shall pay a penalty of $50 for such failure, unless it is shown that such failure is due to reasonable cause and not due to willful neglect. The maximum penalty imposed under this subsection on any person with respect to documents filed during any calendar year shall not exceed $25,000.
(c) Failure to furnish identifying number 
Any person who is a tax return preparer with respect to any return or claim for refund and who fails to comply with section 6109 (a)(4) with respect to such return or claim shall pay a penalty of $50 for such failure, unless it is shown that such failure is due to reasonable cause and not due to willful neglect. The maximum penalty imposed under this subsection on any person with respect to documents filed during any calendar year shall not exceed $25,000.
(d) Failure to retain copy or list 
Any person who is a tax return preparer with respect to any return or claim for refund who fails to comply with section 6107 (b) with respect to such return or claim shall pay a penalty of $50 for each such failure, unless it is shown that such failure is due to reasonable cause and not due to willful neglect. The maximum penalty imposed under this subsection on any person with respect to any return period shall not exceed $25,000.
(e) Failure to file correct information returns 
Any person required to make a return under section 6060 who fails to comply with the requirements of such section shall pay a penalty of $50 for
(1) each failure to file a return as required under such section, and
(2) each failure to set forth an item in the return as required under section,

unless it is shown that such failure is due to reasonable cause and not due to willful neglect. The maximum penalty imposed under this subsection on any person with respect to any return period shall not exceed $25,000.

(f) Negotiation of check 
Any person who is a tax return preparer who endorses or otherwise negotiates (directly or through an agent) any check made in respect of the taxes imposed by this title which is issued to a taxpayer (other than the tax return preparer) shall pay a penalty of $500 with respect to each such check. The preceding sentence shall not apply with respect to the deposit by a bank (within the meaning of section 581) of the full amount of the check in the taxpayers account in such bank for the benefit of the taxpayer.
(g) Failure to be diligent in determining eligibility for earned income credit 
Any person who is a tax return preparer with respect to any return or claim for refund who fails to comply with due diligence requirements imposed by the Secretary by regulations with respect to determining eligibility for, or the amount of, the credit allowable by section 32 shall pay a penalty of $100 for each such failure.

26 USC 6695A - Substantial and gross valuation misstatements attributable to incorrect appraisals

(a) Imposition of penalty 
If
(1) a person prepares an appraisal of the value of property and such person knows, or reasonably should have known, that the appraisal would be used in connection with a return or a claim for refund, and
(2) the claimed value of the property on a return or claim for refund which is based on such appraisal results in a substantial valuation misstatement under chapter 1 (within the meaning of section 6662 (e)), a substantial estate or gift tax valuation understatement (within the meaning of section 6662 (g)), or a gross valuation misstatement (within the meaning of section 6662 (h)), with respect to such property,

then such person shall pay a penalty in the amount determined under subsection (b).

(b) Amount of penalty 
The amount of the penalty imposed under subsection (a) on any person with respect to an appraisal shall be equal to the lesser of
(1) the greater of
(A) 10 percent of the amount of the underpayment (as defined in section 6664 (a)) attributable to the misstatement described in subsection (a)(2), or
(B) $1,000, or
(2) 125 percent of the gross income received by the person described in subsection (a)(1) from the preparation of the appraisal.
(c) Exception 
No penalty shall be imposed under subsection (a) if the person establishes to the satisfaction of the Secretary that the value established in the appraisal was more likely than not the proper value.

26 USC 6696 - Rules applicable with respect to sections 6694, 6695, and 6695A

(a) Penalties to be additional to any other penalties 
The penalties provided by section[1] 6694, 6695, and 6695A shall be in addition to any other penalties provided by law.
(b) 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 with respect to the assessment or collection of the penalties provided by sections 6694, 6695, and 6695A.
(c) Procedure for claiming refund 
Any claim for credit or refund of any penalty paid under section 6694, 6695, or 6695A shall be filed in accordance with regulations prescribed by the Secretary.
(d) Periods of limitation 

(1) Assessment 
The amount of any penalty under section 6694 (a), section[2] 6695, or 6695A shall be assessed within 3 years after the return or claim for refund with respect to which the penalty is assessed was filed, and no proceeding in court without assessment for the collection of such tax shall be begun after the expiration of such period. In the case of any penalty under section 6694 (b), the penalty may be assessed, or a proceeding in court for the collection of the penalty may be begun without assessment, at any time.
(2) Claim for refund 
Except as provided in section 6694 (d), any claim for refund of an overpayment of any penalty assessed under section 6694, 6695, or 6695A shall be filed within 3 years from the time the penalty was paid.
(e) Definitions 
For purposes of sections 6694, 6695, and 6695A
(1) Return 
The term return means any return of any tax imposed by this title.
(2) Claim for refund 
The term claim for refund means a claim for refund of, or credit against, any tax imposed by this title.
[1] So in original. Probably should be “sections”.
[2] So in original. The word “section” probably should not appear.

26 USC 6697 - Assessable penalties with respect to liability for tax of regulated investment companies

(a) Civil penalty 
In addition to any other penalty provided by law, any regulated investment company whose tax liability for any taxable year is deemed to be increased pursuant to section 860 (c)(1)(A) shall pay a penalty in an amount equal to the amount of the interest (for which such company is liable) which is attributable solely to such increase.
(b) 50-percent limitation 
The penalty payable under this section with respect to any determination shall not exceed one-half of the amount of the deduction allowed by section 860 (a) for such taxable year.
(c) Deficiency procedures not to apply 
Subchapter B of chapter 63 (relating to deficiency procedure 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).

26 USC 6698 - Failure to file partnership return

(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 for any taxable year
(1) fails to file such return at the time prescribed therefor (determined with regard to any extension of time for filing), or
(2) files a return which fails to show the information required under 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
(1) $85, multiplied by
(2) the number of persons who were partners in the partnership during any part of the taxable year[1]
(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).
[1] So in original. Probably should be followed by a period.

26 USC 6698A - Repealed. Pub. L. 96223, title IV, 401(a), Apr. 2, 1980, 94 Stat. 299]

Section, added Pub. L. 94–455, title XX, § 2005(d)(2), Oct. 4, 1976, 90 Stat. 1878, 6694; renumbered 6698 and amended Pub. L. 95–600, title VII, § 702(r)(1)(A), (B), Nov. 6, 1978, 92 Stat. 2938; renumbered 6698A, Pub. L. 96–222, title I, § 107(a)(2)(D), Apr. 1, 1980, 94 Stat. 223, related to failure of an executor to file information with respect to carryover basis property. Repeal was achieved by repealing section 2005(d)(2) of Pub. L. 94–455 and section 702(r)(1)(A), (B) of Pub. L. 95–600 and the amendments made by those sections.

26 USC 6699 - Failure to file S corporation return

(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 S corporation required to file a return under section 6037 for any taxable year
(1) fails to file such return at the time prescribed therefor (determined with regard to any extension of time for filing), or
(2) files a return which fails to show the information required under section 6037,

such S corporation 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
(1) $85, multiplied by
(2) the number of persons who were shareholders in the S corporation during any part of the taxable year.
(c) Assessment of penalty 
The penalty imposed by subsection (a) shall be assessed against the S corporation.
(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).

26 USC 6700 - Promoting abusive tax shelters, etc.

(a) Imposition of penalty 
Any person who
(1) 
(A) organizes (or assists in the organization of)
(i) a partnership or other entity,
(ii) any investment plan or arrangement, or
(iii) any other plan or arrangement, or
(B) participates (directly or indirectly) in the sale of any interest in an entity or plan or arrangement referred to in subparagraph (A), and
(2) makes or furnishes or causes another person to make or furnish (in connection with such organization or sale)
(A) a statement with respect to the allowability of any deduction or credit, the excludability of any income, or the securing of any other tax benefit by reason of holding an interest in the entity or participating in the plan or arrangement which the person knows or has reason to known is false or fraudulent as to any material matter, or
(B) a gross valuation overstatement as to any material matter,

shall pay, with respect to each activity described in paragraph (1), a penalty equal to the $1,000 or, if the person establishes that it is lesser, 100 percent of the gross income derived (or to be derived) by such person from such activity. For purposes of the preceding sentence, activities described in paragraph (1)(A) with respect to each entity or arrangement shall be treated as a separate activity and participation in each sale described in paragraph (1)(B) shall be so treated. Notwithstanding the first sentence, if an activity with respect to which a penalty imposed under this subsection involves a statement described in paragraph (2)(A), the amount of the penalty shall be equal to 50 percent of the gross income derived (or to be derived) from such activity by the person on which the penalty is imposed.

(b) Rules relating to penalty for gross valuation overstatements 

(1) Gross valuation overstatement defined 
For purposes of this section, the term gross valuation overstatement means any statement as to the value of any property or services if
(A) the value so stated exceeds 200 percent of the amount determined to be the correct valuation, and
(B) the value of such property or services is directly related to the amount of any deduction or credit allowable under chapter 1 to any participant.
(2) Authority to waive 
The Secretary may waive all or any part of the penalty provided by subsection (a) with respect to any gross valuation overstatement on a showing that there was a reasonable basis for the valuation and that such valuation was made in good faith.
(c) Penalty in addition to other penalties 
The penalty imposed by this section shall be in addition to any other penalty provided by law.

26 USC 6701 - Penalties for aiding and abetting understatement of tax liability

(a) Imposition of penalty 
Any person
(1) who aids or assists in, procures, or advises with respect to, the preparation or presentation of any portion of a return, affidavit, claim, or other document,
(2) who knows (or has reason to believe) that such portion will be used in connection with any material matter arising under the internal revenue laws, and
(3) who knows that such portion (if so used) would result in an understatement of the liability for tax of another person,

shall pay a penalty with respect to each such document in the amount determined under subsection (b).

(b) Amount of penalty 

(1) In general 
Except as provided in paragraph (2), the amount of the penalty imposed by subsection (a) shall be $1,000.
(2) Corporations 
If the return, affidavit, claim, or other document relates to the tax liability of a corporation, the amount of the penalty imposed by subsection (a) shall be $10,000.
(3) Only 1 penalty per person per period 
If any person is subject to a penalty under subsection (a) with respect to any document relating to any taxpayer for any taxable period (or where there is no taxable period, any taxable event), such person shall not be subject to a penalty under subsection (a) with respect to any other document relating to such taxpayer for such taxable period (or event).
(c) Activities of subordinates 

(1) In general 
For purposes of subsection (a), the term procures includes
(A) ordering (or otherwise causing) a subordinate to do an act, and
(B) knowing of, and not attempting to prevent, participation by a subordinate in an act.
(2) Subordinate 
For purposes of paragraph (1), the term subordinate means any other person (whether or not a director, officer, employee, or agent of the taxpayer involved) over whose activities the person has direction, supervision, or control.
(d) Taxpayer not required to have knowledge 
Subsection (a) shall apply whether or not the understatement is with the knowledge or consent of the persons authorized or required to present the return, affidavit, claim, or other document.
(e) Certain actions not treated as aid or assistance 
For purposes of subsection (a)(1), a person furnishing typing, reproducing, or other mechanical assistance with respect to a document shall not be treated as having aided or assisted in the preparation of such document by reason of such assistance.
(f) Penalty in addition to other penalties 

(1) In general 
Except as provided by paragraphs (2) and (3), the penalty imposed by this section shall be in addition to any other penalty provided by law.
(2) Coordination with return preparer penalties 
No penalty shall be assessed under subsection (a) or (b) of section 6694 on any person with respect to any document for which a penalty is assessed on such person under subsection (a).
(3) Coordination with section 6700 
No penalty shall be assessed under section 6700 on any person with respect to any document for which a penalty is assessed on such person under subsection (a).

26 USC 6702 - Frivolous tax submissions

(a) Civil penalty for frivolous tax returns 
A person shall pay a penalty of $5,000 if
(1) such person files what purports to be a return of a tax imposed by this title but which
(A) does not contain information on which the substantial correctness of the self-assessment may be judged, or
(B) contains information that on its face indicates that the self-assessment is substantially incorrect, and
(2) the conduct referred to in paragraph (1)
(A) is based on a position which the Secretary has identified as frivolous under subsection (c), or
(B) reflects a desire to delay or impede the administration of Federal tax laws.
(b) Civil penalty for specified frivolous submissions 

(1) Imposition of penalty 
Except as provided in paragraph (3), any person who submits a specified frivolous submission shall pay a penalty of $5,000.
(2) Specified frivolous submission 
For purposes of this section
(A) Specified frivolous submission 
The term specified frivolous submission means a specified submission if any portion of such submission
(i) is based on a position which the Secretary has identified as frivolous under subsection (c), or
(ii) reflects a desire to delay or impede the administration of Federal tax laws.
(B) Specified submission 
The term specified submission means
(i) a request for a hearing under
(I) section 6320 (relating to notice and opportunity for hearing upon filing of notice of lien), or
(II) section 6330 (relating to notice and opportunity for hearing before levy), and
(ii) an application under
(I) section 6159 (relating to agreements for payment of tax liability in installments),
(II) section 7122 (relating to compromises), or
(III) section 7811 (relating to taxpayer assistance orders).
(3) Opportunity to withdraw submission 
If the Secretary provides a person with notice that a submission is a specified frivolous submission and such person withdraws such submission within 30 days after such notice, the penalty imposed under paragraph (1) shall not apply with respect to such submission.
(c) Listing of frivolous positions 
The Secretary shall prescribe (and periodically revise) a list of positions which the Secretary has identified as being frivolous for purposes of this subsection. The Secretary shall not include in such list any position that the Secretary determines meets the requirement of section 6662 (d)(2)(B)(ii)(II).
(d) Reduction of penalty 
The Secretary may reduce the amount of any penalty imposed under this section if the Secretary determines that such reduction would promote compliance with and administration of the Federal tax laws.
(e) Penalties in addition to other penalties 
The penalties imposed by this section shall be in addition to any other penalty provided by law.

26 USC 6703 - Rules applicable to penalties under sections 6700, 6701, and 6702

(a) Burden of proof 
In any proceeding involving the issue of whether or not any person is liable for a penalty under section 6700, 6701, or 6702, the burden of proof with respect to such issue shall be on the Secretary.
(b) Deficiency procedures not to apply 
Subchapter B of chapter 63 (relating to deficiency procedures) shall not apply with respect to the assessment or collection of the penalties provided by sections 6700, 6701, and 6702.
(c) Extension of period of collection where person pays 15 percent of penalty 

(1) In general 
If, within 30 days after the day on which notice and demand of any penalty under section 6700 or 6701 is made against any person, such person pays an amount which is not less than 15 percent of the amount of such penalty and files a claim for refund of the amount so paid, no levy or proceeding in court for the collection of the remainder of such penalty shall be made, begun, or prosecuted until the final resolution of a proceeding begun as provided in paragraph (2). Notwithstanding the provisions of section 7421 (a), the beginning of such proceeding or levy during the time such prohibition is in force may be enjoined by a proceeding in the proper court. Nothing in this paragraph shall be construed to prohibit any counterclaim for the remainder of such penalty in a proceeding begun as provided in paragraph (2).
(2) Person must bring suit in district court to determine his liability for penalty 
If, within 30 days after the day on which his claim for refund of any partial payment of any penalty under section 6700 or 6701 is denied (or, if earlier, within 30 days after the expiration of 6 months after the day on which he filed the claim for refund), the person fails to begin a proceeding in the appropriate United States district court for the determination of his liability for such penalty, paragraph (1) shall cease to apply with respect to such penalty, effective on the day following the close of the applicable 30-day period referred to in this paragraph.
(3) Suspension of running of period of limitations on collection 
The running of the period of limitations provided in section 6502 on the collection by levy or by a proceeding in court in respect of any penalty described in paragraph (1) shall be suspended for the period during which the Secretary is prohibited from collecting by levy or a proceeding in court.

26 USC 6704 - Failure to keep records necessary to meet reporting requirements under section 6047(d)

(a) Liability for penalty 
Any person who
(1) has a duty to report or may have a duty to report any information under section 6047 (d), and
(2) fails to keep such records as may be required by regulations prescribed under section 6047 (d) for the purpose of providing the necessary data base for either current reporting or future reporting,

shall pay a penalty for each calendar year for which there is any failure to keep such records.

(b) Amount of penalty 

(1) In general 
The penalty of any person for any calendar year shall be $50, multiplied by the number of individuals with respect to whom such failure occurs in such year.
(2) Maximum amount 
The penalty under this section of any person for any calendar year shall not exceed $50,000.
(c) Exceptions 

(1) Reasonable cause 
No penalty shall be imposed by this section on any person for any failure which is shown to be due to reasonable cause and not to willful neglect.
(2) Inability to correct previous failure 
No penalty shall be imposed by this section on any failure by a person if such failure is attributable to a prior failure which has been penalized under this section and with respect to which the person has made all reasonable efforts to correct the failure.
(3) Pre-1983 failures 
No penalty shall be imposed by this section on any person for any failure which is attributable to a failure occurring before January 1, 1983, if the person has made all reasonable efforts to correct such pre-1983 failure.

26 USC 6705 - Failure by broker to provide notice to payors

(a) In general 
Any person required under section 3406 (d)(2)(B) to provide notice to any payor who willfully fails to provide such notice to such payor shall pay a penalty of $500 for each such failure.
(b) Penalty in addition to other penalties 
Any penalty imposed by this section shall be in addition to any other penalty provided by law.

26 USC 6706 - Original issue discount information requirements

(a) Failure to show information on debt instrument 
In the case of a failure to set forth on a debt instrument the information required to be set forth on such instrument under section 1275 (c)(1), unless it is shown that such failure is due to reasonable cause and not to willful neglect, the issuer shall pay a penalty of $50 for each instrument with respect to which such a failure exists.
(b) Failure to furnish information to Secretary 
Any issuer who fails to furnish information required under section 1275 (c)(2) with respect to any issue of debt instruments on the date prescribed therefor (determined with regard to any extension of time for filing) shall pay a penalty equal to 1 percent of the aggregate issue price of such issue, unless it is shown that such failure is due to reasonable cause and not willful neglect. The amount of the penalty imposed under the preceding sentence with respect to any issue of debt instruments shall not exceed $50,000 for such issue.
(c) 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 this section.

26 USC 6707 - Failure to furnish information regarding reportable transactions

(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
(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).

(b) Amount of penalty 

(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
(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.

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).

26 USC 6707A - Penalty for failure to include reportable transaction information with return

(a) Imposition of penalty 
Any person who fails to include on any return or statement any information with respect to a reportable transaction which is required under section 6011 to be included with such return or statement shall pay a penalty in the amount determined under subsection (b).
(b) Amount of penalty 

(1) In general 
Except as provided in paragraph (2), the amount of the penalty under subsection (a) shall be
(A) $10,000 in the case of a natural person, and
(B) $50,000 in any other case.
(2) Listed transaction 
The amount of the penalty under subsection (a) with respect to a listed transaction shall be
(A) $100,000 in the case of a natural person, and
(B) $200,000 in any other case.
(c) Definitions 
For purposes of this section:
(1) Reportable transaction 
The term reportable transaction means any transaction with respect to which information is required to be included with a return or statement because, as determined under regulations prescribed under section 6011, such transaction is of a type which the Secretary determines as having a potential for tax avoidance or evasion.
(2) Listed transaction 
The term listed transaction means a reportable transaction which is the same as, or substantially similar to, a transaction specifically identified by the Secretary as a tax avoidance transaction for purposes of section 6011.
(d) Authority to rescind penalty 

(1) In general 
The Commissioner of Internal Revenue may rescind all or any portion of any penalty imposed by this section with respect to any violation if
(A) the violation is with respect to a reportable transaction other than a listed transaction, and
(B) rescinding the penalty would promote compliance with the requirements of this title and effective tax administration.
(2) No judicial appeal 
Notwithstanding any other provision of law, any determination under this subsection may not be reviewed in any judicial proceeding.
(3) Records 
If a penalty is rescinded under paragraph (1), the Commissioner shall place in the file in the Office of the Commissioner the opinion of the Commissioner with respect to the determination, including
(A) a statement of the facts and circumstances relating to the violation,
(B) the reasons for the rescission, and
(C) the amount of the penalty rescinded.
(e) Penalty reported to SEC 
In the case of a person
(1) which is required to file periodic reports under section 13 or 15(d) of the Securities Exchange Act of 1934 or is required to be consolidated with another person for purposes of such reports, and
(2) which
(A) is required to pay a penalty under this section with respect to a listed transaction,
(B) is required to pay a penalty under section 6662A with respect to any reportable transaction at a rate prescribed under section 6662A (c), or
(C) is required to pay a penalty under section 6662 (h) with respect to any reportable transaction and would (but for section 6662A (e)(2)(B)) have been subject to penalty under section 6662A at a rate prescribed under section 6662A (c),

the requirement to pay such penalty shall be disclosed in such reports filed by such person for such periods as the Secretary shall specify. Failure to make a disclosure in accordance with the preceding sentence shall be treated as a failure to which the penalty under subsection (b)(2) applies.

(f) Coordination with other penalties 
The penalty imposed by this section shall be in addition to any other penalty imposed by this title.

26 USC 6708 - Failure to maintain lists of advisees with respect to reportable transactions

(a) Imposition of penalty 

(1) In general 
If any person who is required to maintain a list under section 6112 (a) fails to make such list available upon written request to the Secretary in accordance with section 6112 (b) within 20 business days after the date of such request, such person shall pay a penalty of $10,000 for each day of such failure after such 20th day.
(2) Reasonable cause exception 
No penalty shall be imposed by paragraph (1) with respect to the failure on any day if such failure is due to reasonable cause.
(b) Penalty in addition to other penalties 
The penalty imposed by this section shall be in addition to any other penalty provided by law.

26 USC 6709 - Penalties with respect to mortgage credit certificates

(a) Negligence 
If
(1) any person makes a material misstatement in any verified written statement made under penalties of perjury with respect to the issuance of a mortgage credit certificate, and
(2) such misstatement is due to the negligence of such person,

such person shall pay a penalty of $1,000 for each mortgage credit certificate with respect to which such a misstatement was made.

(b) Fraud 
If a misstatement described in subsection (a)(1) is due to fraud on the part of the person making such misstatement, in addition to any criminal penalty, such person shall pay a penalty of $10,000 for each mortgage credit certificate with respect to which such a misstatement is made.
(c) Reports 
Any person required by section 25 (g) to file a report with the Secretary who fails to file the report with respect to any mortgage credit certificate at the time and in the manner required by the Secretary shall pay a penalty of $200 for such failure unless it is shown that such failure is due to reasonable cause and not to willful neglect. In the case of any report required under the second sentence of section 25 (g), the aggregate amount of the penalty imposed by the preceding sentence shall not exceed $2,000.
(d) Mortgage credit certificate 
The term mortgage credit certificate has the meaning given to such term by section 25 (c).

26 USC 6710 - Failure to disclose that contributions are nondeductible

(a) Imposition of penalty 
If there is a failure to meet the requirement of section 6113 with respect to a fundraising" target="_blank" title="fundraising">fundraising solicitation by (or on behalf of) an organization to which section 6113 applies, such organization shall pay a penalty of $1,000 for each day on which such a failure occurred. The maximum penalty imposed under this subsection on failures by any organization during any calendar year shall not exceed $10,000.
(b) Reasonable cause exception 
No penalty shall be imposed under this section with respect to any failure if it is shown that such failure is due to reasonable cause.
(c) $10,000 limitation not to apply where intentional disregard 
If any failure to which subsection (a) applies is due to intentional disregard of the requirement of section 6113
(1) the penalty under subsection (a) for the day on which such failure occurred shall be the greater of
(A) $1,000, or
(B) 50 percent of the aggregate cost of the solicitations which occurred on such day and with respect to which there was such a failure,
(2) the $10,000 limitation of subsection (a) shall not apply to any penalty under subsection (a) for the day on which such failure occurred, and
(3) such penalty shall not be taken into account in applying such limitation to other penalties under subsection (a).
(d) Day on which failure occurs 
For purposes of this section, any failure to meet the requirement of section 6113 with respect to a solicitation
(1) by television or radio, shall be treated as occurring when the solicitation was telecast or broadcast,
(2) by mail, shall be treated as occurring when the solicitation was mailed,
(3) not by mail but in written or printed form, shall be treated as occurring when the solicitation was distributed, or
(4) by telephone, shall be treated as occurring when the solicitation was made.

26 USC 6711 - Failure by tax-exempt organization to disclose that certain information or service available from Federal Government

(a) Imposition of penalty 
If
(1) a tax-exempt organization offers to sell (or solicits money for) specific information or a routine service for any individual which could be readily obtained by such individual free of charge (or for a nominal charge) from an agency of the Federal Government,
(2) the tax-exempt organization, when making such offer or solicitation, fails to make an express statement (in a conspicuous and easily recognizable format) that the information or service can be so obtained, and
(3) such failure is due to intentional disregard of the requirements of this subsection,

such organization shall pay a penalty determined under subsection (b) for each day on which such a failure occurred.

(b) Amount of penalty 
The penalty under subsection (a) for any day on which a failure referred to in such subsection occurred shall be the greater of
(1) $1,000, or
(2) 50 percent of the aggregate cost of the offers and solicitations referred to in subsection (a)(1) which occurred on such day and with respect to which there was such a failure.
(c) Definitions 
For purposes of this section
(1) Tax-exempt organization 
The term tax-exempt organization means any organization which
(A) is described in subsection (c) or (d) of section 501 and exempt from taxation under section 501 (a), or
(B) is a political organization (as defined in section 527 (e)).
(2) Day on which failure occurs 
The day on which any failure referred to in subsection (a) occurs shall be determined under rules similar to the rules of section 6710 (d).

26 USC 6712 - Failure to disclose treaty-based return positions

(a) General rule 
If a taxpayer fails to meet the requirements of section 6114, there is hereby imposed a penalty equal to $1,000 ($10,000 in the case of a C corporation) on each such failure.
(b) Authority to waive 
The Secretary may waive all or any part of the penalty provided by this section on a showing by the taxpayer that there was reasonable cause for the failure and that the taxpayer acted in good faith.
(c) Penalty in addition to other penalties 
The penalty imposed by this section shall be in addition to any other penalty imposed by law.

26 USC 6713 - Disclosure or use of information by preparers of returns

(a) Imposition of penalty 
If any person who is engaged in the business of preparing, or providing services in connection with the preparation of, returns of tax imposed by chapter 1, or any person who for compensation prepares any such return for any other person, and who
(1) discloses any information furnished to him for, or in connection with, the preparation of any such return, or
(2) uses any such information for any purpose other than to prepare, or assist in preparing, any such return,

shall pay a penalty of $250 for each such disclosure or use, but the total amount imposed under this subsection on such a person for any calendar year shall not exceed $10,000.

(b) Exceptions 
The rules of section 7216 (b) shall apply for purposes of this section.
(c) 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 this section.

26 USC 6714 - Failure to meet disclosure requirements applicable to quid pro quo contributions

(a) Imposition of penalty 
If an organization fails to meet the disclosure requirement of section 6115 with respect to a quid pro quo contribution, such organization shall pay a penalty of $10 for each contribution in respect of which the organization fails to make the required disclosure, except that the total penalty imposed by this subsection with respect to a particular fundraising" target="_blank" title="fundraising">fundraising event or mailing shall not exceed $5,000.
(b) Reasonable cause exception 
No penalty shall be imposed under this section with respect to any failure if it is shown that such failure is due to reasonable cause.

26 USC 6715 - Dyed fuel sold for use or used in taxable use, etc.

(a) Imposition of penalty 
If
(1) any dyed fuel is sold or held for sale by any person for any use which such person knows or has reason to know is not a nontaxable use of such fuel,
(2) any dyed fuel is held for use or used by any person for a use other than a nontaxable use and such person knew, or had reason to know, that such fuel was so dyed,
(3) any person willfully alters, chemically or otherwise, or attempts to so alter, the strength or composition of any dye or marking done pursuant to section 4082 in any dyed fuel, or
(4) any person who has knowledge that a dyed fuel which has been altered as described in paragraph (3) sells or holds for sale such fuel for any use which the person knows or has reason to know is not a nontaxable use of such fuel,

then such person shall pay a penalty in addition to the tax (if any).

(b) Amount of penalty 

(1) In general 
Except as provided in paragraph (2), the amount of the penalty under subsection (a) on each act shall be the greater of
(A) $1,000, or
(B) $10 for each gallon of the dyed fuel involved.
(2) Multiple violations 
In determining the penalty under subsection (a) on any person, paragraph (1) shall be applied by increasing the amount in paragraph (1)(A) by the product of such amount and the number of prior penalties (if any) imposed by this section on such person (or a related person or any predecessor of such person or related person).
(c) Definitions 
For purposes of this section
(1) Dyed fuel 
The term dyed fuel means any dyed diesel fuel or kerosene, whether or not the fuel was dyed pursuant to section 4082.
(2) Nontaxable use 
The term nontaxable use has the meaning given such term by section 4082 (b).
(d) Joint and several liability of certain officers and employees 
If a penalty is imposed under this section on any business entity, each officer, employee, or agent of such entity who willfully participated in any act giving rise to such penalty shall be jointly and severally liable with such entity for such penalty.
(e) No administrative appeal for third and subsequent violations 
In the case of any person who is found to be subject to the penalty under this section after a chemical analysis of such fuel and who has been penalized under this section at least twice after the date of the enactment of this subsection, no administrative appeal or review shall be allowed with respect to such finding except in the case of a claim regarding
(1) fraud or mistake in the chemical analysis, or
(2) mathematical calculation of the amount of the penalty.

26 USC 6715A - Tampering with or failing to maintain security requirements for mechanical dye injection systems

(a) Imposition of penalty 

(1) Tampering 
If any person tampers with a mechanical dye injection system used to indelibly dye fuel for purposes of section 4082, such person shall pay a penalty in addition to the tax (if any).
(2) Failure to maintain security requirements 
If any operator of a mechanical dye injection system used to indelibly dye fuel for purposes of section 4082 fails to maintain the security standards for such system as established by the Secretary, then such operator shall pay a penalty in addition to the tax (if any).
(b) Amount of penalty 
The amount of the penalty under subsection (a) shall be
(1) for each violation described in paragraph (1), the greater of
(A) $25,000, or
(B) $10 for each gallon of fuel involved, and
(2) for each
(A) failure to maintain security standards described in paragraph (2), $1,000, and
(B) failure to correct a violation described in paragraph (2), $1,000 per day for each day after which such violation was discovered or such person should have reasonably known of such violation.
(c) Joint and several liability 

(1) In general 
If a penalty is imposed under this section on any business entity, each officer, employee, or agent of such entity or other contracting party who willfully participated in any act giving rise to such penalty shall be jointly and severally liable with such entity for such penalty.
(2) Affiliated groups 
If a business entity described in paragraph (1) is part of an affiliated group (as defined in section 1504 (a)), the parent corporation of such entity shall be jointly and severally liable with such entity for the penalty imposed under this section.

26 USC 6716 - Failure to file information with respect to certain transfers at death and gifts

(a) Information required to be furnished to the Secretary 
Any person required to furnish any information under section 6018 who fails to furnish such information on the date prescribed therefor (determined with regard to any extension of time for filing) shall pay a penalty of $10,000 ($500 in the case of information required to be furnished under section 6018 (b)(2)) for each such failure.
(b) Information required to be furnished to beneficiaries 
Any person required to furnish in writing to each person described in section 6018 (e) or 6019 (b) the information required under such section who fails to furnish such information shall pay a penalty of $50 for each such failure.
(c) Reasonable cause exception 
No penalty shall be imposed under subsection (a) or (b) with respect to any failure if it is shown that such failure is due to reasonable cause.
(d) Intentional disregard 
If any failure under subsection (a) or (b) is due to intentional disregard of the requirements under sections 6018 and 6019 (b), the penalty under such subsection shall be 5 percent of the fair market value (as of the date of death or, in the case of section 6019 (b), the date of the gift) of the property with respect to which the information is required.
(e) 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 this section.

26 USC 6717 - Refusal of entry

(a) In general 
In addition to any other penalty provided by law, any person who refuses to admit entry or refuses to permit any other action by the Secretary authorized by section 4083 (d)(1) shall pay a penalty of $1,000 for such refusal.
(b) Joint and several liability 

(1) In general 
If a penalty is imposed under this section on any business entity, each officer, employee, or agent of such entity or other contracting party who willfully participated in any act giving rise to such penalty shall be jointly and severally liable with such entity for such penalty.
(2) Affiliated groups 
If a business entity described in paragraph (1) is part of an affiliated group (as defined in section 1504 (a)), the parent corporation of such entity shall be jointly and severally liable with such entity for the penalty imposed under this section.
(c) Reasonable cause exception 
No penalty shall be imposed under this section with respect to any failure if it is shown that such failure is due to reasonable cause.

26 USC 6718 - Failure to display tax registration on vessels

(a) Failure to display registration 
Every operator of a vessel who fails to display proof of registration pursuant to section 4101 (a)(3) shall pay a penalty of $500 for each such failure. With respect to any vessel, only one penalty shall be imposed by this section during any calendar month.
(b) Multiple violations 
In determining the penalty under subsection (a) on any person, subsection (a) shall be applied by increasing the amount in subsection (a) by the product of such amount and the aggregate number of penalties (if any) imposed with respect to prior months by this section on such person (or a related person or any predecessor of such person or related person).
(c) Reasonable cause exception 
No penalty shall be imposed under this section with respect to any failure if it is shown that such failure is due to reasonable cause.

26 USC 6719 - Failure to register or reregister

(a) Failure to register or reregister 
Every person who is required to register or reregister under section 4101 and fails to do so shall pay a penalty in addition to the tax (if any).
(b) Amount of penalty 
The amount of the penalty under subsection (a) shall be
(1) $10,000 for each initial failure to register or reregister, and
(2) $1,000 for each day thereafter such person fails to register or reregister.
(c) Reasonable cause exception 
No penalty shall be imposed under this section with respect to any failure if it is shown that such failure is due to reasonable cause.

26 USC 6720 - Fraudulent acknowledgments with respect to donations of motor vehicles, boats, and airplanes

Any donee organization required under section 170 (f)(12)(A) to furnish a contemporaneous written acknowledgment to a donor which knowingly furnishes a false or fraudulent acknowledgment, or which knowingly fails to furnish such acknowledgment in the manner, at the time, and showing the information required under section 170 (f)(12), or regulations prescribed thereunder, shall for each such act, or for each such failure, be subject to a penalty equal to
(1) in the case of an acknowledgment with respect to a qualified vehicle to which section 170 (f)(12)(A)(ii) applies, the greater of
(A) the product of the highest rate of tax specified in section 1 and the sales price stated on the acknowledgment, or
(B) the gross proceeds from the sale of such vehicle, and
(2) in the case of an acknowledgment with respect to any other qualified vehicle to which section 170 (f)(12) applies, the greater of
(A) the product of the highest rate of tax specified in section 1 and the claimed value of the vehicle, or
(B) $5,000.

26 USC 6720A - Penalty with respect to certain adulterated fuels

(a) In general 
Any person who knowingly transfers for resale, sells for resale, or holds out for resale any liquid for use in a diesel-powered highway vehicle or a diesel-powered train which does not meet applicable EPA regulations (as defined in section 45H (c)(3)), shall pay a penalty of $10,000 for each such transfer, sale, or holding out for resale, in addition to the tax on such liquid (if any).
(b) Penalty in the case of retailers 
Any person who knowingly holds out for sale (other than for resale) any liquid described in subsection (a), shall pay a penalty of $10,000 for each such holding out for sale, in addition to the tax on such liquid (if any).

26 USC 6720B - Fraudulent identification of exempt use property

In addition to any criminal penalty provided by law, any person who identifies applicable property (as defined in section 170 (e)(7)(C)) as having a use which is related to a purpose or function constituting the basis for the donees exemption under section 501 and who knows that such property is not intended for such a use shall pay a penalty of $10,000.