26 U.S.C. § 6721
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 $250 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 $3,000,000.
For purposes of paragraph (1), the failures described in this paragraph are-
If any failure described in subsection (a)(2) is corrected on or before the day 30 days after the required filing date-
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-
If-
for purposes of this section, such return shall be treated as having been filed with all of the correct required information.
The number of information returns to which paragraph (1) applies for any calendar year shall not exceed the greater of-
If, with respect to an information return filed with the Secretary-
then no correction shall be required and, for purposes of this section, such return shall be treated as having been filed with all of the correct required information.
Subparagraph (A) shall not apply with respect to any incorrect dollar amount to the extent that such error relates to an amount with respect to which an election is made under section 6722(c)(3)(B).
The Secretary may issue regulations to prevent the abuse of the safe harbor under this paragraph, including regulations providing that this paragraph shall not apply to the extent necessary to prevent any such abuse.
If any person meets the gross receipts test of paragraph (2) with respect to any calendar year, with respect to failures during such calendar year-
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.
For purposes of subparagraph (A), the rules of paragraphs (2) and (3) of section 448(c) shall apply.
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-
In the case of any failure relating to a return required to be filed in a calendar year beginning after 2014, each of the dollar amounts under subsections (a), (b), (d) (other than paragraph (2)(A) thereof), and (e) shall be increased by an amount equal to such dollar amount multiplied by the cost-of-living adjustment determined under section 1(f)(3) for the calendar year determined by substituting "calendar year 2011" for "calendar year 2016" in subparagraph (A)(ii) thereof.
If any amount adjusted under paragraph (1)-
26 U.S.C. § 6721
Inflation Adjusted Items for Certain Years For inflation adjustment of certain items in this section, see Revenue Procedures listed in a table under section 1 of this title.
EDITORIAL NOTES
AMENDMENTS2018-Subsec. (c)(3)(A)(iii). Pub. L. 115-141, §101(f)(2), substituted "the information return" for "any information return".Subsec. (f)(1). Pub. L. 115-141, §401(a) (299)(F), inserted "an amount equal to" after "increased by" and "for the calendar year" after "section 1(f)(3)". 2017-Subsec. (f)(1). Pub. L. 115-97 substituted "for 'calendar year 2016' in subparagraph (A)(ii)" for "for 'calendar year 1992' in subparagraph (B)".2015-Subsec. (a)(1). Pub. L. 114-27, §806(a), substituted "$250" for "$100" and "$3,000,000" for "$1,500,000".Subsec. (b)(1)(A). Pub. L. 114-27, §806(b)(1)(A), (B), substituted "$50" for "$30" and "$250" for "$100".Subsec. (b)(1)(B). Pub. L. 114-27, §806(b)(1)(C), substituted "$500,000" for "$250,000". Subsec. (b)(2)(A). Pub. L. 114-27, §806(b)(2)(A), (B), substituted "$100" for "$60" and "$250" for "$100".Subsec. (b)(2)(B). Pub. L. 114-27, §806(b)(2)(C), substituted "$1,500,000" for "$500,000".Subsec. (c). Pub. L. 114-113, §202(d)(1), substituted "Exceptions for certain de minimis failures" for "Exception for de minimis failures to include all required information" in heading. Subsec. (c)(1). Pub. L. 114-113, §202(d)(2), substituted "Exception for de minimis failure to include all required information" for "In general" in heading.Subsec. (c)(3). Pub. L. 114-113, §202(a), added par. (3).Subsec. (d)(1)(A). Pub. L. 114-27, §806(c)(1), substituted "$1,000,000" for "$500,000" and "$3,000,000" for "$1,500,000".Subsec. (d)(1)(B). Pub. L. 114-27, §806(c)(2), substituted "$175,000" for "$75,000" and "$500,000" for "$250,000".Subsec. (d)(1)(C). Pub. L. 114-27, §806(c)(3), substituted "$500,000" for "$200,000" and "$1,500,000" for "$500,000".Subsec. (e)(2). Pub. L. 114-27, §806(d)(1), substituted "$500" for "$250".Subsec. (e)(3)(A). Pub. L. 114-27, §806(d)(2), substituted "$3,000,000" for "$1,500,000". 2014-Subsec. (f)(1). Pub. L. 113-295 substituted "In the case of any failure relating to a return required to be filed in a calendar year beginning after 2014" for "For each fifth calendar year beginning after 2012".2010-Subsec. (a)(1). Pub. L. 111-240, §2102(a), substituted "$100" for "$50" and "$1,500,000" for "$250,000".Subsec. (b)(1)(A). Pub. L. 111-240, §2102(a)(1), (b)(1), substituted "$30" for "$15" and "$100" for "$50".Subsec. (b)(1)(B). Pub. L. 111-240, §2102(b)(2), substituted "$250,000" for "$75,000".Subsec. (b)(2)(A). Pub. L. 111-240, §2102(a)(1), (c)(1), substituted "$60" for "$30" and "$100" for "$50".Subsec. (b)(2)(B). Pub. L. 111-240, §2102(c)(2), substituted "$500,000" for "$150,000". Subsec. (d)(1). Pub. L. 111-240, §2102(d)(2), substituted "such calendar year" for "such taxable year" in introductory provisions. Subsec. (d)(1)(A). Pub. L. 111-240, §2102(a)(2), (d)(1)(A), substituted "$500,000" for "$100,000" and "$1,500,000" for "$250,000".Subsec. (d)(1)(B). Pub. L. 111-240, §2102(b)(2), (d)(1)(B), substituted "$75,000" for "$25,000" and "$250,000" for "$75,000".Subsec. (d)(1)(C). Pub. L. 111-240, §2102(c)(2), (d)(1)(C), substituted "$200,000" for "$50,000" and "$500,000" for "$150,000".Subsec. (e)(2). Pub. L. 111-240, §2102(e), substituted "$250" for "$100" in introductory provisions.Subsec. (e)(3)(A). Pub. L. 111-240, §2102(a)(2), substituted "$1,500,000" for "$250,000". Subsec. (f). Pub. L. 111-240, §2102(f), added subsec. (f).2006-Subsec. (e)(2)(D). Pub. L. 109-280, which directed the addition of subpar. (D) to section 6721(e)(2), without specifying the act to be amended, was executed by making the addition to subsec. (e)(2) of this section, which is section 6721 of the Internal Revenue Code of 1986, to reflect the probable intent of Congress. 1990-Subsec. (e)(2). Pub. L. 101-508 inserted "6050I," after "6050H," and struck out "or" at end of subpar. (A), substituted "or" for "and" at end of subpar. (B), and added subpar. (C). 1989- Pub. L. 101-239 substituted "correct" for "certain" in section catchline and amended text generally, substituting subsecs. (a) to (e) for former subsec. (a) stating general rule and subsec. (b) relating to penalty in case of intentional disregard. 1988-Subsec. (b)(1)(A). Pub. L. 100-690 inserted "(or, if greater, in the case of a return filed under section 6050I, 10 percent of the taxable income derived from the transaction)" after "reported".
STATUTORY NOTES AND RELATED SUBSIDIARIES
EFFECTIVE DATE OF 2018 AMENDMENT Amendment by section 101(f)(2) of Pub. L. 115-141 effective as if included in the provision of the Protecting Americans from Tax Hikes Act of 2015, div. Q of Pub. L. 114-113, to which such amendment relates, see section 101(s) of Pub. L. 115-141, set out as a note under section 24 of this title.
EFFECTIVE DATE OF 2017 AMENDMENT Amendment by Pub. L. 115-97 applicable to taxable years beginning after Dec. 31, 2017, see section 11002(e) of Pub. L. 115-97, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 2015 AMENDMENT Amendment by Pub. L. 114-113 applicable to returns required to be filed, and payee statements required to be provided, after Dec. 31, 2016, see section 202(e) of Pub. L. 114-113, set out as a note under section 6045 of this title. Pub. L. 114-27, §806(f), June 29, 2015, 129 Stat. 418, provided that: "The amendments made by this section [amending this section and section 6722 of this title] shall apply with respect to returns and statements required to be filed after December 31, 2015."
EFFECTIVE DATE OF 2014 AMENDMENT Amendment by Pub. L. 113-295 applicable to returns required to be filed, and statements required to be furnished, after Dec. 31, 2014, see section 208(h) of Pub. L. 113-295, set out as a note under section 6651 of this title.
EFFECTIVE DATE OF 2010 AMENDMENT Pub. L. 111-240, §2102(h), Sept. 27, 2010, 124 Stat. 2564, as amended by Pub. L. 113-295, div. A, title II, §207(a)(1), Dec. 19, 2014, 128 Stat. 4027, provided that: "The amendments made by this section [amending this section and section 6722 of this title] shall apply with respect to information returns required to be filed, and payee statements required to be furnished, on or after January 1, 2011."
EFFECTIVE DATE OF 2006 AMENDMENT Amendment by Pub. L. 109-280 applicable to acquisitions of contracts after Aug. 17, 2006, see section 1211(d) of Pub. L. 109-280, set out as an Effective Date note under section 6050V of this title.
EFFECTIVE DATE OF 1990 AMENDMENT Amendment by Pub. L. 101-508 applicable to amounts received after Nov. 5, 1990, see section 11318(e)(1) of Pub. L. 101-508, set out as a note under section 6050I of this title.
EFFECTIVE DATE OF 1989 AMENDMENT Pub. L. 101-239, §7711(c), Dec. 19, 1989, 103 Stat. 2393, provided that: "The amendments made by this section [amending this section and sections 6722 to 6724 and 7205 of this title and repealing sections 6017A, 6676, and 6687 of this title] shall apply to returns and statements the due date for which (determined without regard to extensions) is after December 31, 1989."
EFFECTIVE DATE OF 1988 AMENDMENT Amendment by Pub. L. 100-690 applicable to actions after Nov. 18, 1988, see section 7601(a)(3) of Pub. L. 100-690, set out as a note under section 6050I of this title.
EFFECTIVE DATEPub. L. 99-514, title XV, §1501(e), Oct. 22, 1986, 100 Stat. 2741, provided that: "The amendments made by this section [enacting this section and sections 6722 to 6724 of this title, amending sections 219, 6031, 6033 to 6034A, 6041, 6042 to 6045, 6047, 6049, 6050A to 6050C, 6050E to 6050I, 6050K, 6052, 6057, 6058, 6652, and 6676 of this title, and repealing section 6678 of this title] shall apply to returns the due date for which (determined without regard to extensions) is after December 31, 1986, except that the amendments made by subsections (c)(2), (c)(3), and (c)(5) [amending sections 6042, 6044, and 6049 of this title] shall apply to returns the due [date] for which (determined without regard to extensions) is after the date of the enactment of this Act [Oct. 22, 1986]."
- Internal Revenue Code of 1986
- The term "Internal Revenue Code of 1986" means this title, and the term "Internal Revenue Code of 1939" means the Internal Revenue Code enacted February 10, 1939, as amended.
- Secretary
- The term "Secretary" means the Secretary of the Treasury or his delegate.
- person
- The term "person" shall be construed to mean and include an individual, a trust, estate, partnership, association, company or corporation.
- taxable year
- The term "taxable year" means the calendar year, or the fiscal year ending during such calendar year, upon the basis of which the taxable income is computed under subtitle A. "Taxable year" means, in the case of a return made for a fractional part of a year under the provisions of subtitle A or under regulations prescribed by the Secretary, the period for which such return is made.
- transaction
- The term "transaction" includes a series of transactions.