26 U.S.C. § 6706 — Original issue discount information re-

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 instruments shall not exceed $50,000 for such issue. (c) Deficiency procedures not to apply Subchapter B of chapter 63 (relating to defi- ciency 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. (Added Pub. L. 98–369, div. A, title I, § 41(c)(1), July 18, 1984, 98 Stat. 555.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective on day 30 days after July 18, 1984, see section 44(h) of Pub. L. 98–369, set out as a note under section 1271 of this title. § 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 report- able 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 trans- action, 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 pen- alty 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, assist- ance, or advice which is provided with re- spect to the listed transaction before the date the return is filed under section 6111. Subparagraph (B) shall be applied by sub- stituting ‘‘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 ‘‘re- portable transaction’’ and ‘‘listed transaction’’ have the respective meanings given to such terms by section 6707A(c). (Added Pub. L. 98–369, div. A, title I, § 141(b), July 18, 1984, 98 Stat. 680; amended Pub. L. 99–514, title XV, §§ 1532(a), 1533(a), Oct. 22, 1986, 100 Stat. 2750; Pub. L. 105–34, title X, § 1028(b), (d), Aug. 5, 1997, 111 Stat. 927, 928; Pub. L. 108–357, title VIII, § 816(a), Oct. 22, 2004, 118 Stat. 1583.) Editorial Notes AMENDMENTS 2004—Pub. L. 108–357 amended section catchline and text generally, substituting provisions relating to pen- alty for failure to furnish information regarding report- able transactions for provisions relating to penalty for failure to furnish information regarding tax shelters. 1997—Subsec. (a)(1). Pub. L. 105–34, § 1028(d)(2), which directed the substitution of ‘‘paragraph (2) or (3), as the case may be’’ for ‘‘paragraph (2)’’ in subpar. (A) of par. (1), was executed by making the substitution in the concluding provisions of par. (1) to reflect the probable intent of Congress. Subsec. (a)(2). Pub. L. 105–34, § 1028(d)(1), substituted ‘‘Except as provided in paragraph (3), the penalty’’ for ‘‘The penalty’’. Subsec. (a)(3). Pub. L. 105–34, § 1028(b), added par. (3). 1986—Subsec. (a)(2). Pub. L. 99–514, § 1532(a), amended par. (2) generally. Prior to amendment, par. (2) read as follows: ‘‘The penalty imposed under paragraph (1) with respect to any tax shelter shall be an amount equal to the greater of— ‘‘(A) $500, or ‘‘(B) the lesser of (i) 1 percent of the aggregate amount invested in such tax shelter, or (ii) $10,000.