TITLE 26 - US CODE - PART II - FAILURE TO COMPLY WITH CERTAIN INFORMATION REPORTING REQUIREMENTS

26 USC 6721 - Failure to file correct information returns

(a) Imposition of penalty 

(1) In general 
In the case of a failure described in paragraph (2) by any person with respect to an information return, such person shall pay a penalty of $50 for each return with respect to which such a failure occurs, but the total amount imposed on such person for all such failures during any calendar year shall not exceed $250,000.
(2) Failures subject to penalty 
For purposes of paragraph (1), the failures described in this paragraph are
(A) any failure to file an information return with the Secretary on or before the required filing date, and
(B) any failure to include all of the information required to be shown on the return or the inclusion of incorrect information.
(b) Reduction where correction in specified period 

(1) Correction within 30 days 
If any failure described in subsection (a)(2) is corrected on or before the day 30 days after the required filing date
(A) the penalty imposed by subsection (a) shall be $15 in lieu of $50, and
(B) the total amount imposed on the person for all such failures during any calendar year which are so corrected shall not exceed $75,000.
(2) Failures corrected on or before August 1 
If any failure described in subsection (a)(2) is corrected after the 30th day referred to in paragraph (1) but on or before August 1 of the calendar year in which the required filing date occurs
(A) the penalty imposed by subsection (a) shall be $30 in lieu of $50, and
(B) the total amount imposed on the person for all such failures during the calendar year which are so corrected shall not exceed $150,000.
(c) Exception for de minimis failures to include all required information 

(1) In general 
If
(A) an information return is filed with the Secretary,
(B) there is a failure described in subsection (a)(2)(B) (determined after the application of section 6724 (a)) with respect to such return, and
(C) such failure is corrected on or before August 1 of the calendar year in which the required filing date occurs,

for purposes of this section, such return shall be treated as having been filed with all of the correct required information.

(2) Limitation 
The number of information returns to which paragraph (1) applies for any calendar year shall not exceed the greater of
(A) 10, or
(B) one-half of 1 percent of the total number of information returns required to be filed by the person during the calendar year.
(d) Lower limitations for persons with gross receipts of not more than $5,000,000 

(1) In general 
If any person meets the gross receipts test of paragraph (2) with respect to any calendar year, with respect to failures during such taxable year
(A) subsection (a)(1) shall be applied by substituting $100,000 for $250,000,
(B) subsection (b)(1)(B) shall be applied by substituting $25,000 for $75,000, and
(C) subsection (b)(2)(B) shall be applied by substituting $50,000 for $150,000.
(2) Gross receipts test 

(A) In general 
A person meets the gross receipts test of this paragraph for any calendar year if the average annual gross receipts of such person for the most recent 3 taxable years ending before such calendar year do not exceed $5,000,000.
(B) Certain rules made applicable 
For purposes of subparagraph (A), the rules of paragraphs (2) and (3) of section 448 (c) shall apply.
(e) Penalty in case of intentional disregard 
If 1 or more failures described in subsection (a)(2) are due to intentional disregard of the filing requirement (or the correct information reporting requirement), then, with respect to each such failure
(1) subsections (b), (c), and (d) shall not apply,
(2) the penalty imposed under subsection (a) shall be $100, or, if greater
(A) in the case of a return other than a return required under section 6045 (a), 6041A (b), 6050H, 6050I, 6050J, 6050K, or 6050L, 10 percent of the aggregate amount of the items required to be reported correctly,
(B) in the case of a return required to be filed by section 6045 (a), 6050K, or 6050L, 5 percent of the aggregate amount of the items required to be reported correctly,
(C) in the case of a return required to be filed under section 6050I (a) with respect to any transaction (or related transactions), the greater of
(i) $25,000, or
(ii) the amount of cash (within the meaning of section 6050I (d)) received in such transaction (or related transactions) to the extent the amount of such cash does not exceed $100,000, or
(D) in the case of a return required to be filed under section 6050V, 10 percent of the value of the benefit of any contract with respect to which information is required to be included on the return, and
(3) in the case of any penalty determined under paragraph (2)
(A) the $250,000 limitation under subsection (a) shall not apply, and
(B) such penalty shall not be taken into account in applying such limitation (or any similar limitation under subsection (b)) to penalties not determined under paragraph (2).

26 USC 6722 - Failure to furnish correct payee statements

(a) General rule 
In the case of each failure described in subsection (b) by any person with respect to a payee statement, such person shall pay a penalty of $50 for each statement with respect to which such a failure occurs, but the total amount imposed on such person for all such failures during any calendar year shall not exceed $100,000.
(b) Failures subject to penalty 
For purposes of subsection (a), the failures described in this subsection are
(1) any failure to furnish a payee statement on or before the date prescribed therefor to the person to whom such statement is required to be furnished, and
(2) any failure to include all of the information required to be shown on a payee statement or the inclusion of incorrect information.
(c) Penalty in case of intentional disregard 
If 1 or more failures to which subsection (a) applies are due to intentional disregard of the requirement to furnish a payee statement (or the correct information reporting requirement), then, with respect to each failure
(1) the penalty imposed under subsection (a) shall be $100, or, if greater
(A) in the case of a payee statement other than a statement required under section 6045 (b), 6041A (e) (in respect of a return required under section 6041A (b)), 6050H (d), 6050J (e), 6050K (b), or 6050L (c), 10 percent of the aggregate amount of the items required to be reported correctly, or
(B) in the case of a payee statement required under section 6045 (b), 6050K (b), or 6050L (c), 5 percent of the aggregate amount of the items required to be reported correctly, and
(2) in the case of any penalty determined under paragraph (1)
(A) the $100,000 limitation under subsection (a) shall not apply, and
(B) such penalty shall not be taken into account in applying such limitation to penalties not determined under paragraph (1).

26 USC 6723 - Failure to comply with other information reporting requirements

In the case of a failure by any person to comply with a specified information reporting requirement on or before the time prescribed therefor, such person shall pay a penalty of $50 for each such failure, but the total amount imposed on such person for all such failures during any calendar year shall not exceed $100,000.

26 USC 6724 - Waiver; definitions and special rules

(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.
(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.
(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 250 information returns (more than 100 information returns in the case of a partnership having more than 100 partners).
(d) Definitions 
For purposes of this part
(1) Information return 
The term information return means
(A) any statement of the amount of payments to another person required by
(i) section 6041 (a) or (b) (relating to certain information at source),
(ii) section 6042 (a)(1) (relating to payments of dividends),
(iii) section 6044 (a)(1) (relating to payments of patronage dividends),
(iv) section 6049 (a) (relating to payments of interest),
(v) section 6050A (a) (relating to reporting requirements of certain fishing boat operators),
(vi) section 6050N (a) (relating to payments of royalties),
(vii) section 6051 (d) (relating to information returns with respect to income tax withheld),
(viii) section 6050R (relating to returns relating to certain purchases of fish), or
(ix) section 110 (d) (relating to qualified lessee construction allowances for short-term leases),
(B) any return required by
(i) section 6041A (a) or (b) (relating to returns of direct sellers),
(ii) section 6043A (a) (relating to returns relating to taxable mergers and acquisitions),
(iii) section 6045 (a) or (d) (relating to returns of brokers),
(iv) section 6050H (a) or (h)(1) (relating to mortgage interest received in trade or business from individuals),
(v) section 6050I (a) or (g)(1) (relating to cash received in trade or business, etc.),
(vi) section 6050J (a) (relating to foreclosures and abandonments of security),
(vii) section 6050K (a) (relating to exchanges of certain partnership interests),
(viii) section 6050L (a) (relating to returns relating to certain dispositions of donated property),
(ix) section 6050P (relating to returns relating to the cancellation of indebtedness by certain financial entities),
(x) section 6050Q (relating to certain long-term care benefits),
(xi) section 6050S (relating to returns relating to payments for qualified tuition and related expenses),
(xii) section 6050T (relating to returns relating to credit for health insurance costs of eligible individuals),
(xiii) section 6052 (a) (relating to reporting payment of wages in the form of group-life insurance),
(xiv) section 6050V (relating to returns relating to applicable insurance contracts in which certain exempt organizations hold interests),
(xv) section 6053 (c)(1) (relating to reporting with respect to certain tips),
(xvi) subsection (b) or (e) of section 1060 (relating to reporting requirements of transferors and transferees in certain asset acquisitions),
(xvii) section 4101 (d) (relating to information reporting with respect to fuels taxes),
(xviii) 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),
(xix) [1] section 264 (f)(5)(A)(iv) (relating to reporting with respect to certain life insurance and annuity contracts), or
(xx) section 6050U (relating to charges or payments for qualified long-term care insurance contracts under combined arrangements), and
(xix) [1] section 6039 (a) (relating to returns required with respect to certain options), and
(C) any statement of the amount of payments to another person required to be made to the Secretary under
(i) section 408 (i) (relating to reports with respect to individual retirement accounts or annuities), or
(ii) section 6047 (d) (relating to reports by employers, plan administrators, etc.).

Such term also includes any form, statement, or schedule required to be filed with the Secretary 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).

(2) Payee statement 
The term payee statement means any statement required to be furnished under
(A) section 6031 (b) or (c), 6034A, or 6037 (b) (relating to statements furnished by certain pass-thru entities),
(B) section 6039 (b) (relating to information required in connection with certain options),
(C) section 6041 (d) (relating to information at source),
(D) section 6041A (e) (relating to returns regarding payments of remuneration for services and direct sales),
(E) section 6042 (c) (relating to returns regarding payments of dividends and corporate earnings and profits),
(F) subsections (b) and (d) of section 6043A (relating to returns relating to taxable mergers and acquisitions).[2]
(G) section 6044 (e) (relating to returns regarding payments of patronage dividends),
(H) section 6045 (b) or (d) (relating to returns of brokers),
(I) section 6049 (c) (relating to returns regarding payments of interest),
(J) section 6050A (b) (relating to reporting requirements of certain fishing boat operators),
(K) section 6050H (d) or (h)(2) relating[3] to returns relating to mortgage interest received in trade or business from individuals),
(L) section 6050I (e) or paragraph (4) or (5) of section 6050I (g) (relating to cash received in trade or business, etc.),
(M) section 6050J (e) (relating to returns relating to foreclosures and abandonments of security),
(N) section 6050K (b) (relating to returns relating to exchanges of certain partnership interests),
(O) section 6050L (c) (relating to returns relating to certain dispositions of donated property),
(P) section 6050N (b) (relating to returns regarding payments of royalties),
(Q) section 6050P (d) (relating to returns relating to the cancellation of indebtedness by certain financial entities),
(R) section 6050Q (b) (relating to certain long-term care benefits),
(S) section 6050R (c) (relating to returns relating to certain purchases of fish),
(T) section 6051 (relating to receipts for employees),
(U) section 6052 (b) (relating to returns regarding payment of wages in the form of group-term life insurance),
(V) section 6053 (b) or (c) (relating to reports of tips),
(W) section 6048 (b)(1)(B) (relating to foreign trust reporting requirements),
(X) 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,
(Y) 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,
(Z) section 6050S (d) (relating to returns relating to qualified tuition and related expenses),
(AA) section 264 (f)(5)(A)(iv) (relating to reporting with respect to certain life insurance and annuity contracts),
(BB) section 6050T (relating to returns relating to credit for health insurance costs of eligible individuals)[4]
(CC) section 6050U (relating to charges or payments for qualified long-term care insurance contracts under combined arrangements).

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 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).

(3) Specified information reporting requirement 
The term specified information reporting requirement means
(A) the notice required by section 6050K (c)(1) (relating to requirement that transferor notify partnership of exchange),
(B) any requirement contained in the regulations prescribed under section 6109 that a person
(i) include his TIN on any return, statement, or other document (other than an information return or payee statement),
(ii) furnish his TIN to another person, or
(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,
(C) any requirement contained in the regulations prescribed under section 215 that a person
(i) furnish his TIN to another person, or
(ii) include on his return the TIN of another person, and
(D) any requirement under section 6109 (h) that
(i) a person include on his return the name, address, and TIN of another person, or
(ii) a person furnish his TIN to another person.
(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).
(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.
[1] So in original. Two cls. (xix) have been enacted.
[2] So in original. The period probably should be a comma.
[3] So in original. Probably should be preceded by an opening parenthesis.
[4] So in original. A comma and the word “or” probably should appear.

26 USC 6725 - Failure to report information under section 4101

(a) In general 
In the case of each failure described in subsection (b) by any person with respect to a vessel or facility, such person shall pay a penalty of $10,000 in addition to the tax (if any).
(b) Failures subject to penalty 
For purposes of subsection (a), the failures described in this subsection are
(1) any failure to make a report under section 4101 (d) on or before the date prescribed therefor, and
(2) any failure to include all of the information required to be shown on such report or the inclusion of incorrect information.
(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.