26 U.S.C. § 6710 — Failure to disclose that contributions are

Page 3812 TITLE 26—INTERNAL REVENUE CODE § 6710 (1) any person makes a material misstatement in any verified written state- ment made under penalties of perjury with re- spect to the issuance of a mortgage credit cer- tificate, and (2) such misstatement is due to the neg- ligence of such person, such person shall pay a penalty of $1,000 for each mortgage credit certificate with respect to which such a misstatement was made. (b) Fraud If a misstatement described in subsection (a)(1) is due to fraud on the part of the person making such misstatement, in addition to any criminal penalty, such person shall pay a pen- alty of $10,000 for each mortgage credit certifi- cate with respect to which such a misstatement is made. (c) Reports Any person required by section 25(g) to file a report with the Secretary who fails to file the report with respect to any mortgage credit cer- tificate at the time and in the manner required by the Secretary shall pay a penalty of $200 for such failure unless it is shown that such failure is due to reasonable cause and not to willful ne- glect. In the case of any report required under the second sentence of section 25(g), the aggre- gate amount of the penalty imposed by the pre- ceding sentence shall not exceed $2,000. (d) Mortgage credit certificate The term ‘‘mortgage credit certificate’’ has the meaning given to such term by section 25(c). (Added Pub. L. 98–369, div. A, title VI, § 612(d)(1), July 18, 1984, 98 Stat. 912, § 6708; renumbered § 6709, Pub. L. 99–514, title XVIII, § 1862(d)(2), Oct. 22, 1986, 100 Stat. 2884.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1986 AMENDMENT Amendment by Pub. L. 99–514 effective, except as oth- erwise provided, as if included in the provisions of the Tax Reform Act of 1984, Pub. L. 98–369, div. A, to which such amendment relates, see section 1881 of Pub. L. 99–514, set out as a note under section 48 of this title. EFFECTIVE DATE Section applicable to interest paid or accrued after Dec. 31, 1984, on indebtedness incurred after Dec. 31, 1984, see section 612(g) of Pub. L. 98–369, set out as a note under section 25 of this title. § 6710. Failure to disclose that contributions are nondeductible (a) Imposition of penalty If there is a failure to meet the requirement of section 6113 with respect to a fundraising solici- tation by (or on behalf of) an organization to which section 6113 applies, such organization shall pay a penalty of $1,000 for each day on which such a failure occurred. The maximum penalty imposed under this subsection on fail- ures by any organization during any calendar year shall not exceed $10,000. (b) 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. (c) $10,000 limitation not to apply where inten- tional disregard If any failure to which subsection (a) applies is due to intentional disregard of the requirement of section 6113— (1) the penalty under subsection (a) for the day on which such failure occurred shall be the greater of— (A) $1,000, or (B) 50 percent of the aggregate cost of the solicitations which occurred on such day and with respect to which there was such a fail- ure, (2) the $10,000 limitation of subsection (a) shall not apply to any penalty under sub- section (a) for the day on which such failure occurred, and (3) such penalty shall not be taken into ac- count in applying such limitation to other penalties under subsection (a). (d) Day on which failure occurs For purposes of this section, any failure to meet the requirement of section 6113 with re- spect to a solicitation— (1) by television or radio, shall be treated as occurring when the solicitation was telecast or broadcast, (2) by mail, shall be treated as occurring when the solicitation was mailed, (3) not by mail but in written or printed form, shall be treated as occurring when the solicitation was distributed, or (4) by telephone, shall be treated as occur- ring when the solicitation was made. (Added Pub. L. 100–203, title X, § 10701(b), Dec. 22, 1987, 101 Stat. 1330–458.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section applicable to solicitations after Jan. 31, 1988, see section 10701(d) of Pub. L. 100–203, set out as a note under section 6113 of this title. § 6711. Failure by tax-exempt organization to dis- close that certain information or service available from Federal Government (a) Imposition of penalty If— (1) a tax-exempt organization offers to sell (or solicits money for) specific information or a routine service for any individual which could be readily obtained by such individual free of charge (or for a nominal charge) from an agency of the Federal Government, (2) the tax-exempt organization, when mak- ing such offer or solicitation, fails to make an express statement (in a conspicuous and easily recognizable format) that the information or service can be so obtained, and (3) such failure is due to intentional dis- regard of the requirements of this subsection, such organization shall pay a penalty deter- mined under subsection (b) for each day on which such a failure occurred. (b) Amount of penalty The penalty under subsection (a) for any day on which a failure referred to in such subsection occurred shall be the greater of—