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26 U.S.C. § 6706 — Original issue discount information requirements
Federal law — U.S. Code and appendices · legal_authorities
**(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.
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Source file: Laws/federal/codes/united-states-code/title-26/section-6706-original-issue-discount-information-requirements--631bea934a.md
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Source location: Title 26, Chapter 68, § 6706; chapter-068-additions-to-the-tax-additional-amounts-and-assessable-penalties.md
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**(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.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) General rule** For purposes of this title—
(1) **Retirement** — Amounts received by the holder on retirement of any debt instrument shall be considered as amounts received in exchange therefor.
(2) **Ordinary income on sale or exchange where intention to call before maturity**
(A) *In general* — If at the time of original issue there was an intention to call a debt instrument before maturity, any gain realized on the sale or exchange thereof which does not exceed an amount equal to—
(i) the original issue discount, reduced by
(ii) the portion of original issue discount previously includible in the gross income of any holder (without regard to section 1272(a)(7) (or the corresponding provisions of prior law)),
shall be treated as ordinary income.
(B) *Exceptions* — This paragraph shall not apply to—
(i) any tax-exempt obligation, or
(ii) any holder who has purchased the debt instrument at a premium.
(3) **Certain short-term Government obligations**
(A) *In general* — On the sale or exchange of any short-term Government obligation, any gain realized which does not exceed an amount equal to the ratable share of the acquisition discount shall be treated as ordinary income.
(B) *Short-term Government obligation* — For purposes of this paragraph, the term “short-term Government obligation” means any obligation of the United States or any of its possessions, or of a State or any political subdivision thereof, or of the District of Columbia, which has a fixed maturity date not more than 1 year from the date of issue. Such term does not include any tax-exempt obligation.
(C) *Acquisition discount* — For purposes of this paragraph, the term “acquisition discount” means the excess of the stated redemption price at maturity over the t
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 1271
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Federal law — U.S. Code and appendices · legal_authorities
Page 3809
TITLE 26—INTERNAL REVENUE CODE
§ 6707
§ 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.
(Added Pub. L. 98–67, title I, § 104(c)(1), Aug. 5,
1983, 97 Stat. 379.)
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE
Section effective with respect to payments made
after Dec. 31, 1983, see section 110(a) of Pub. L. 98–67, set
out as an Effective Date of 1983 Amendment note under
section 31 of this title.
§ 6706. Original issue discount information re-
quirements
(a) Failure to show information on debt instru-
ment
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 ne-
glect, 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 re-
quired under section 1275(c)(2) with respect to
any issue of debt instruments on the date pre-
scribed 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 ne-
glect. The amount of the penalty imposed under
the preceding sentence with respect to any issue
of debt instr
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 6706
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