26 U.S.C. § 6651 — Failure to file tax return or to pay tax

Page 3737 TITLE 26—INTERNAL REVENUE CODE § 6651 dition to tax in case of overstatements of pension li- abilities’’, 6660 ‘‘Addition to tax in the case of valu- ation understatement for purposes of estate or gift taxes’’, and 6661 ‘‘Substantial understatement of liabil- ity’’. 1986—Pub. L. 99–514, title XI, § 1138(b), title XV, § 1503(d)(2), Oct. 22, 1986, 100 Stat. 2486, 2743, substituted ‘‘Additions to tax for negligence and fraud’’ for ‘‘Fail- ure to pay tax’’ in item 6653 and added item 6659A. 1984—Pub. L. 98–369, div. A, title I, § 155(c)(2)(B), July 18, 1984, 98 Stat. 695, added item 6660. 1982—Pub. L. 97–248, title III, § 323(b), Sept. 3, 1982, 96 Stat. 615, added item 6661 and redesignated former item 6660 as 6662. See Codification note set out under section 6662 of this title. 1981—Pub. L. 97–34, title VII, §§ 722(a)(2), 724(b)(2), Aug. 13, 1981, 95 Stat. 342, 345, inserted ‘‘or overstate- ment of deposits’’ in item 6656, added item 6659, and re- designated item 6659 as 6660. 1980—Pub. L. 96–589, § 6(e)(2), Dec. 24, 1980, 94 Stat. 3408, added item 6658. 1979—Pub. L. 96–167, § 6(b), Dec. 29, 1979, 93 Stat. 1276, struck out item 6658 ‘‘Addition to tax in case of jeop- ardy’’. 1974—Pub. L. 93–406, title II, § 1031(b)(1)(B)(ii), Sept. 2, 1974, 88 Stat. 946, inserted ‘‘, registration statements, etc.’’ in item 6652. 1969—Pub. L. 91–172, title IX, § 943(c)(5), 83 Stat. 729, inserted ‘‘or pay tax’’ in item 6651. § 6651. Failure to file tax return or to pay tax (a) Addition to the tax In case of failure— (1) to file any return required under author- ity of subchapter A of chapter 61 (other than part III thereof), subchapter A of chapter 51 (relating to distilled spirits, wines, and beer), or of subchapter A of chapter 52 (relating to tobacco, cigars, cigarettes, and cigarette pa- pers and tubes), or of subchapter A of chapter 53 (relating to machine guns and certain other firearms), on the date prescribed therefor (de- termined with regard to any extension of time for filing), unless it is shown that such failure is due to reasonable cause and not due to will- ful neglect, there shall be added to the amount required to be shown as tax on such return 5 percent of the amount of such tax if the fail- ure is for not more than 1 month, with an ad- ditional 5 percent for each additional month or fraction thereof during which such failure continues, not exceeding 25 percent in the ag- gregate; (2) to pay the amount shown as tax on any return specified in paragraph (1) on or before the date prescribed for payment of such tax (determined with regard to any extension of time for payment), unless it is shown that such failure is due to reasonable cause and not due to willful neglect, there shall be added to the amount shown as tax on such return 0.5 percent of the amount of such tax if the fail- ure is for not more than 1 month, with an ad- ditional 0.5 percent for each additional month or fraction thereof during which such failure continues, not exceeding 25 percent in the ag- gregate; or (3) to pay any amount in respect of any tax required to be shown on a return specified in paragraph (1) which is not so shown (including an assessment made pursuant to section 6213(b)) within 21 calendar days from the date of notice and demand therefor (10 business days if the amount for which such notice and demand is made equals or exceeds $100,000), un- less it is shown that such failure is due to rea- sonable cause and not due to willful neglect, there shall be added to the amount of tax stat- ed in such notice and demand 0.5 percent of the amount of such tax if the failure is for not more than 1 month, with an additional 0.5 per- cent for each additional month or fraction thereof during which such failure continues, not exceeding 25 percent in the aggregate. In the case of a failure to file a return of tax im- posed by chapter 1 within 60 days of the date prescribed for filing of such return (determined with regard to any extensions of time for filing), unless it is shown that such failure is due to rea- sonable cause and not due to willful neglect, the addition to tax under paragraph (1) shall not be less than the lesser of $435 or 100 percent of the amount required to be shown as tax on such re- turn. (b) Penalty imposed on net amount due For purposes of— (1) subsection (a)(1), the amount of tax re- quired to be shown on the return shall be re- duced by the amount of any part of the tax which is paid on or before the date prescribed for payment of the tax and by the amount of any credit against the tax which may be claimed on the return, (2) subsection (a)(2), the amount of tax shown on the return shall, for purposes of computing the addition for any month, be re- duced by the amount of any part of the tax which is paid on or before the beginning of such month and by the amount of any credit against the tax which may be claimed on the return, and (3) subsection (a)(3), the amount of tax stat- ed in the notice and demand shall, for the pur- pose of computing the addition for any month, be reduced by the amount of any part of the tax which is paid before the beginning of such month. (c) Limitations and special rule (1) Additions under more than one paragraph With respect to any return, the amount of the addition under paragraph (1) of subsection (a) shall be reduced by the amount of the addi- tion under paragraph (2) of subsection (a) for any month (or fraction thereof) to which an addition to tax applies under both paragraphs (1) and (2). In any case described in the last sentence of subsection (a), the amount of the addition under paragraph (1) of subsection (a) shall not be reduced under the preceding sen- tence below the amount provided in such last sentence. (2) Amount of tax shown more than amount re- quired to be shown If the amount required to be shown as tax on a return is less than the amount shown as tax on such return, subsections (a)(2) and (b)(2) shall be applied by substituting such lower amount. (d) Increase in penalty for failure to pay tax in certain cases (1) In general In the case of each month (or fraction there- of) beginning after the day described in para- Page 3738 TITLE 26—INTERNAL REVENUE CODE § 6651 graph (2) of this subsection, paragraphs (2) and (3) of subsection (a) shall be applied by sub- stituting ‘‘1 percent’’ for ‘‘0.5 percent’’ each place it appears. (2) Description For purposes of paragraph (1), the day de- scribed in this paragraph is the earlier of— (A) the day 10 days after the date on which notice is given under section 6331(d), or (B) the day on which notice and demand for immediate payment is given under the last sentence of section 6331(a). (e) Exception for estimated tax This section shall not apply to any failure to pay any estimated tax required to be paid by section 6654 or 6655. (f) Increase in penalty for fraudulent failure to file If any failure to file any return is fraudulent, paragraph (1) of subsection (a) shall be applied— (1) by substituting ‘‘15 percent’’ for ‘‘5 per- cent’’ each place it appears, and (2) by substituting ‘‘75 percent’’ for ‘‘25 per- cent’’. (g) Treatment of returns prepared by Secretary under section 6020(b) In the case of any return made by the Sec- retary under section 6020(b)— (1) such return shall be disregarded for pur- poses of determining the amount of the addi- tion under paragraph (1) of subsection (a), but (2) such return shall be treated as the return filed by the taxpayer for purposes of deter- mining the amount of the addition under para- graphs (2) and (3) of subsection (a). (h) Limitation on penalty on individual’s failure to pay for months during period of install- ment agreement In the case of an individual who files a return of tax on or before the due date for the return (including extensions), paragraphs (2) and (3) of subsection (a) shall each be applied by sub- stituting ‘‘0.25’’ for ‘‘0.5’’ each place it appears for purposes of determining the addition to tax for any month during which an installment agreement under section 6159 is in effect for the payment of such tax. (i) Application to imputed underpayment For purposes of this section, any failure to comply with section 6226(b)(4)(A)(ii) shall be treated as a failure to pay the amount described in subclause (II) thereof and such amount shall be treated for purposes of this section as an amount shown as tax on a return specified in subsection (a)(1). (j) Adjustment for inflation (1) In general In the case of any return required to be filed in a calendar year beginning after 2020, the $435 dollar amount under subsection (a) shall be increased by an amount equal to such dol- lar amount multiplied by the cost-of-living ad- justment determined under section 1(f)(3) for the calendar year determined by substituting ‘‘calendar year 2019’’ for ‘‘calendar year 2016’’ in subparagraph (A)(ii) thereof. (2) Rounding If any amount adjusted under paragraph (1) is not a multiple of $5, such amount shall be rounded to the next lowest multiple of $5. (Aug. 16, 1954, ch. 736, 68A Stat. 821; Pub. L. 90–364, title I, § 103(e)(4), June 28, 1968, 82 Stat. 264; Pub. L. 91–172, title IX, § 943(a), Dec. 30, 1969, 83 Stat. 727; Pub. L. 92–9, § 3(j)(1), Apr. 1, 1971, 85 Stat. 22; Pub. L. 94–455, title XIX, § 1904(b)(10)(A)(v), Oct. 4, 1976, 90 Stat. 1817; Pub. L. 97–248, title III, § 318(a), (b), Sept. 3, 1982, 96 Stat. 610; Pub. L. 98–369, div. A, title IV, § 412(b)(8), July 18, 1984, 98 Stat. 792; Pub. L. 99–514, title XV, § 1502(a), (b), Oct. 22, 1986, 100 Stat. 2741; Pub. L. 100–203, title X, § 10301(b)(6), Dec. 22, 1987, 101 Stat. 1330–429; Pub. L. 101–239, title VII, § 7741(a), Dec. 19, 1989, 103 Stat. 2404; Pub. L. 104–168, title III, § 303(b)(2), title XIII, § 1301(a), July 30, 1996, 110 Stat. 1458, 1475; Pub. L. 105–206, title III, § 3303(a), July 22, 1998, 112 Stat. 742; Pub. L. 110–245, title III, § 303(a), June 17, 2008, 122 Stat. 1649; Pub. L. 113–295, div. B, title II, § 208(a), Dec. 19, 2014, 128 Stat. 4072; Pub. L. 114–125, title IX, § 921(a), (b), Feb. 24, 2016, 130 Stat. 281; Pub. L. 115–97, title I, § 11002(d)(1)(KK), Dec. 22, 2017, 131 Stat. 2060; Pub. L. 115–141, div. U, title II, § 206(n)(1), title IV, § 401(a)(299)(A), Mar. 23, 2018, 132 Stat. 1181, 1198; Pub. L. 116–25, title III, § 3201(a), (b), July 1, 2019, 133 Stat. 1017; Pub. L. 116–94, div. O, title IV, § 402(a), (b), Dec. 20, 2019, 133 Stat. 3179.) 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 AMENDMENTS 2019—Subsec. (a). Pub. L. 116–94, § 402(a), substituted ‘‘$435’’ for ‘‘$330’’ in concluding provisions. Pub. L. 116–25, § 3201(a), substituted ‘‘$330’’ for ‘‘$205’’ in concluding provisions. Subsec. (j)(1). Pub. L. 116–94, § 402(b), substituted ‘‘$435’’ for ‘‘$330’’. Pub. L. 116–25, § 3201(b), substituted ‘‘2020’’ for ‘‘2014’’, ‘‘$330’’ for ‘‘$205’’, and ‘‘2019’’ for ‘‘2013’’. 2018—Subsec. (i). Pub. L. 115–141, § 206(n)(1), added sub- sec. (i). Former subsec. (i) redesignated (j). Subsec. (j). Pub. L. 115–141, § 401(a)(299)(A), which di- rected amendment of subsec. (i) by inserting ‘‘an amount equal to’’ after ‘‘increased by’’ and ‘‘for the calendar year’’ after ‘‘section 1(f)(3)’’, was executed by making the insertions in subsec. (j) to reflect the prob- able intent of Congress and the redesignation of subsec. (i) as (j) by Pub. L. 115–141, § 206(n)(1), effective as if in- cluded in Pub. L. 114–74. See Amendment and Effective Date of 2018 Amendment notes below. Pub. L. 115–141, § 206(n)(1), redesignated subsec. (i) as (j). 2017—Subsec. (i)(1). Pub. L. 115–97 substituted ‘‘for ‘calendar year 2016’ in subparagraph (A)(ii)’’ for ‘‘for ‘calendar year 1992’ in subparagraph (B)’’. 2016—Subsec. (a). Pub. L. 114–125, § 921(a), substituted ‘‘$205’’ for ‘‘$135’’ in concluding provisions. Subsec. (i)(1). Pub. L. 114–125, § 921(b), substituted ‘‘$205’’ for ‘‘$135’’. 2014—Subsec. (i). Pub. L. 113–295 added subsec. (i). 2008—Subsec. (a). Pub. L. 110–245 substituted ‘‘$135’’ for ‘‘$100’’ in concluding provisions. 1998—Subsec. (h). Pub. L. 105–206 added subsec. (h). 1996—Subsec. (a)(3). Pub. L. 104–168, § 303(b)(2), sub- stituted ‘‘21 calendar days from the date of notice and Page 3739 TITLE 26—INTERNAL REVENUE CODE § 6651 demand therefor (10 business days if the amount for which such notice and demand is made equals or ex- ceeds $100,000)’’ for ‘‘10 days of the date of the notice and demand therefor’’. Subsec. (g). Pub. L. 104–168, § 1301(a), added subsec. (g). 1989—Subsec. (f). Pub. L. 101–239 added subsec. (f). 1987—Subsec. (e). Pub. L. 100–203 substituted ‘‘section 6654 or 6655’’ for ‘‘section 6154 or 6654’’. 1986—Subsec. (c)(1). Pub. L. 99–514, § 1502(b), amended par. (1) generally, striking out the designation ‘‘(A)’’ before ‘‘With respect to’’, inserting ‘‘(or fraction there- of)’’, and striking out subpar. (B) which read as follows: ‘‘With respect to any return, the maximum amount of the addition permitted under paragraph (3) of sub- section (a) shall be reduced by the amount of the addi- tion under paragraph (1) of subsection (a) (determined without regard to the last sentence of such subsection) which is attributable to the tax for which the notice and demand is made and which is not paid within 10 days of notice and demand.’’ Subsecs. (d), (e). Pub. L. 99–514, § 1502(a), added subsec. (d) and redesignated former subsec. (d) as (e). 1984—Subsec. (d). Pub. L. 98–369 in amending subsec. (d) generally, substituted in heading ‘‘estimated tax’’ for ‘‘declarations of estimated tax’’, struck out provi- sions making section inapplicable to any failure to file a declaration of estimated tax required by section 6015 or to any failure to pay any estimated tax required to be paid by section 6153, and made section inapplicable to any failure to pay any estimated tax required to be paid by section 6654. 1982—Subsec. (a). Pub. L. 97–248, § 318(a), inserted pro- vision that, in the case of a failure to file a return of tax imposed by chapter 1 within 60 days of the date pre- scribed for filing of such return (determined with re- gard to any extensions of time for filing), unless it is shown that such failure is due to reasonable cause and not due to willful neglect, the addition to tax under par. (1) shall not be less than the lesser of $100 or 100 percent of the amount required to be shown as tax on such return. Subsec. (c)(1)(A). Pub. L. 97–248, § 318(b)(1), inserted provision that in any case described in last sentence of subsec. (a), the amount of the addition under par. (1) of subsec. (a) shall not be reduced under first sentence of this subpar. below the amount provided in such last sentence. Subsec. (c)(1)(B). Pub. L. 97–248, § 318(b)(2), inserted ‘‘(determined without regard to the last sentence of such subsection)’’ after ‘‘paragraph (1) of subsection (a)’’. 1976—Subsec. (e). Pub. L. 94–455 struck out subsec. (e) which related to certain interest equalization tax re- turns. 1971—Subsec. (e). Pub. L. 92–9 added subsec. (e). 1969—Subsec. (a). Pub. L. 91–172 designated existing provisions as par. (1) and added pars. (2) and (3). Subsec. (b). Pub. L. 91–172 designated existing provi- sions as par. (1) and added pars. (2) and (3). Subsecs. (c), (d). Pub. L. 91–172 added subsec. (c), re- designated former subsec. (c) as (d) and struck out ref- erence to section 6016 of this title and provided that this section would not be applicable for failure to pay any estimated tax required under section 6153 or 6154 of this title. 1968—Subsec. (c). Pub. L. 90–364 struck out reference to section 6016. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2019 AMENDMENT Pub. L. 116–94, div. O, title IV, § 402(c), Dec. 20, 2019, 133 Stat. 3180, provided that: ‘‘The amendments made by this section [amending this section] shall apply to returns the due date for which (including extensions) is after December 31, 2019.’’ Pub. L. 116–25, title III, § 3201(c), July 1, 2019, 133 Stat. 1017, provided that: ‘‘The amendments made by this section [amending this section] shall apply to returns required to be filed after December 31, 2019.’’ EFFECTIVE DATE OF 2018 AMENDMENT Amendment by section 206(n)(1) of Pub. L. 115–141 ef- fective as if included in section 1101 of Pub. L. 114–74, see section 207 of Pub. L. 115–141, set out as a note under section 6031 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 2016 AMENDMENT Pub. L. 114–125, title IX, § 921(c), Feb. 24, 2016, 130 Stat. 281, provided that: ‘‘The amendments made by this sec- tion [amending this section] shall apply to returns re- quired to be filed in calendar years after 2015.’’ EFFECTIVE DATE OF 2014 AMENDMENT Pub. L. 113–295, div. B, title II, § 208(h), Dec. 19, 2014, 128 Stat. 4074, as amended by Pub. L. 115–141, div. U, title I, § 105(a), Mar. 23, 2018, 132 Stat. 1170, provided that: ‘‘(1) IN GENERAL.—Except as provided in paragraph (2), the amendments made by this section [amending this section and sections 6652, 6695, 6698, 6699, 6721, and 6722 of this title] shall apply to returns required to be filed, and statements required to be furnished, after Decem- ber 31, 2014. ‘‘(2) SUBSECTION (c).—The amendment made by sub- section (c) [amending section 6695 of this title] shall apply to returns or claims for refund filed after Decem- ber 31, 2014.’’ [Pub. L. 115–141, div. U, title I, § 105(b), Mar. 23, 2018, 132 Stat. 1170, provided that: ‘‘The amendments made by this section [amending section 208(h) of div. B of Pub. L. 113–295, set out above] shall take effect as if in- cluded in section 208 of the Stephen Beck, Jr., ABLE Act of 2014 [div. B of Pub. L. 113–295].’’] EFFECTIVE DATE OF 2008 AMENDMENT Pub. L. 110–245, title III, § 303(b), June 17, 2008, 122 Stat. 1649, provided that: ‘‘The amendment made by this section [amending this section] shall apply to re- turns required to be filed after December 31, 2008.’’ EFFECTIVE DATE OF 1998 AMENDMENT Pub. L. 105–206, title III, § 3303(b), July 22, 1998, 112 Stat. 742, provided that: ‘‘The amendment made by this section [amending this section] shall apply for purposes of determining additions to the tax for months begin- ning after December 31, 1999.’’ EFFECTIVE DATE OF 1996 AMENDMENT Amendment by section 303(b)(2) of Pub. L. 104–168 ap- plicable in case of any notice and demand given after Dec. 31, 1996, see section 303(c) of Pub. L. 104–168, set out as a note under section 6601 of this title. Pub. L. 104–168, title XIII, § 1301(b), July 30, 1996, 110 Stat. 1475, provided that: ‘‘The amendment made by subsection (a) [amending this section] shall apply in the case of any return the due date for which (deter- mined without regard to extensions) is after the date of the enactment of this Act [July 30, 1996].’’ EFFECTIVE DATE OF 1989 AMENDMENT Pub. L. 101–239, title VII, § 7741(b), Dec. 19, 1989, 103 Stat. 2405, provided that: ‘‘The amendment made by subsection (a) [amending this section] shall apply in the case of failures to file returns the due date for which (determined without regard to extensions) is after December 31, 1989.’’ EFFECTIVE DATE OF 1987 AMENDMENT Amendment by Pub. L. 100–203 applicable to taxable years beginning after Dec. 31, 1987, see section 10301(c) of Pub. L. 100–203, set out as a note under section 585 of this title. Page 3740 TITLE 26—INTERNAL REVENUE CODE § 6652 EFFECTIVE DATE OF 1986 AMENDMENT Pub. L. 99–514, title XV, § 1502(c), Oct. 22, 1986, 100 Stat. 2741, provided that: ‘‘(1) SUBSECTION (a).—The amendments made by sub- section (a) [amending this section] shall apply— ‘‘(A) to failures to pay which begin after December 31, 1986, and ‘‘(B) to failures to pay which begin on or before De- cember 31, 1986, if after December 31, 1986— ‘‘(i) notice (or renotice) under section 6331(d) of the Internal Revenue Code of 1954 [now 1986] is given with respect to such failure, or ‘‘(ii) notice and demand for immediate payment of the underpayment is made under the last sen- tence of section 6331(a) of such Code. In the case of a failure to pay described in subpara- graph (B), paragraph (2) of section 6651(d) of such Code (as added by subsection (a)) shall be applied by taking into account the first notice (or renotice) after Decem- ber 31, 1986. ‘‘(2) SUBSECTION (b).—The amendment made by sub- section (b) [amending this section] shall apply to amounts assessed after December 31, 1986, with respect to failures to pay which begin before, on, or after such date.’’ EFFECTIVE DATE OF 1984 AMENDMENT Amendment by Pub. L. 98–369 applicable with respect to taxable years beginning after Dec. 31, 1984, see sec- tion 414(a)(1) of Pub. L. 98–369, set out as a note under section 6654 of this title. EFFECTIVE DATE OF 1982 AMENDMENT Pub. L. 97–248, title III, § 318(c), Sept. 3, 1982, 96 Stat. 610, provided that: ‘‘The amendments made by this sec- tion [amending this section] shall apply to returns the due date for filing of which (including extensions) is after December 31, 1982.’’ EFFECTIVE DATE OF 1971 AMENDMENT Pub. L. 92–9, § 3(j)(3), Apr. 1, 1971, 85 Stat. 22, provided that: ‘‘The amendments made by this subsection [amending this section and section 6680 of this title] shall apply with respect to returns required to be filed on or after the date of the enactment of this Act [Apr. 1, 1971].’’ EFFECTIVE DATE OF 1969 AMENDMENT Pub. L. 91–172, title IX, § 943(d), Dec. 30, 1969, 83 Stat. 729, provided that: ‘‘The amendments made by sub- sections (a) [amending this section] and (c) [amending sections 3121, 5684, and 6653 of this title] shall apply with respect to returns the date prescribed by law (without regard to any extension of time) for filing of which is after December 31, 1969, and with respect to notices and demands for payment of tax made after De- cember 31, 1969. The amendment made by subsection (b) [amending section 6656 of this title] shall apply with re- spect to deposits the time for making of which is after December 31, 1969.’’ EFFECTIVE DATE OF 1968 AMENDMENT Amendment by Pub. L. 90–364 applicable with respect to taxable years beginning after Dec. 31, 1967, except as provided by section 104 of Pub. L. 90–364, see section 103(f) of Pub. L. 90–364, set out as a note under section 243 of this title. ILLEGAL TAX PROTESTER DESIGNATION Pub. L. 105–206, title III, § 3707, July 22, 1998, 112 Stat. 778, provided that: ‘‘(a) PROHIBITION.—The officers and employees of the Internal Revenue Service— ‘‘(1) shall not designate taxpayers as illegal tax pro- testers (or any similar designation); and ‘‘(2) in the case of any such designation made on or before the date of the enactment of this Act [July 22, 1998]— ‘‘(A) shall remove such designation from the indi- vidual master file; and ‘‘(B) shall disregard any such designation not lo- cated in the individual master file. ‘‘(b) DESIGNATION OF NONFILERS ALLOWED.—An officer or employee of the Internal Revenue Service may des- ignate any appropriate taxpayer as a nonfiler, but shall remove such designation once the taxpayer has filed in- come tax returns for 2 consecutive taxable years and paid all taxes shown on such returns. ‘‘(c) EFFECTIVE DATE.—The provisions of this section shall take effect on the date of the enactment of this Act [July 22, 1998], except that the removal of any des- ignation under subsection (a)(2)(A) shall not be re- quired to begin before January 1, 1999.’’ § 6652. Failure to file certain information re- turns, registration statements, etc. (a) Returns with respect to certain payments ag- gregating less than $10 In the case of each failure to file a statement of a payment to another person required under the authority of— (1) section 6042(a)(2) (relating to payments of dividends aggregating less than $10), or (2) section 6044(a)(2) (relating to payments of patronage dividends aggregating less than $10), on the date prescribed therefor (determined with regard to any extension of time for filing), un- less it is shown that such failure is due to rea- sonable cause and not to willful neglect, there shall be paid (upon notice and demand by the Secretary and in the same manner as tax) by the person failing to so file the statement, $1 for each such statement not so filed, but the total amount imposed on the delinquent person for all such failures during the calendar year shall not exceed $1,000. (b) Failure to report tips In the case of failure by an employee to report to his employer on the date and in the manner prescribed therefor any amount of tips required to be so reported by section 6053(a) which are wages (as defined in section 3121(a)) or which are compensation (as defined in section 3231(e)), un- less it is shown that such failure is due to rea- sonable cause and not due to willful neglect, there shall be paid by the employee, in addition to the tax imposed by section 3101 or section 3201 (as the case may be) with respect to the amount of tips which he so failed to report, an amount equal to 50 percent of such tax. (c) Returns by exempt organizations and by cer- tain trusts (1) Annual returns under section 6033(a)(1) or 6012(a)(6) (A) Penalty on organization In the case of— (i) a failure to file a return required under section 6033(a)(1) (relating to returns by exempt organizations) or section 6012(a)(6) (relating to returns by political organizations) on the date and in the man- ner prescribed therefor (determined with regard to any extension of time for filing), or (ii) a failure to include any of the infor- mation required to be shown on a return filed under section 6033(a)(1) or section