26 U.S.C. § 6708 — Failure to maintain lists of advisees with

Page 3811 TITLE 26—INTERNAL REVENUE CODE § 6709 6662A(e)(2)(B)) have been subject to penalty under section 6662A at a rate prescribed under section 6662A(c), the requirement to pay such penalty shall be disclosed in such reports filed by such person for such periods as the Secretary shall specify. Fail- ure to make a disclosure in accordance with the preceding sentence shall be treated as a failure to which the penalty under subsection (b)(2) ap- plies. (f) Coordination with other penalties The penalty imposed by this section shall be in addition to any other penalty imposed by this title. (Added Pub. L. 108–357, title VIII, § 811(a), Oct. 22, 2004, 118 Stat. 1575; amended Pub. L. 110–172, § 11(a)(41), Dec. 29, 2007, 121 Stat. 2488; Pub. L. 111–240, title II, § 2041(a), Sept. 27, 2010, 124 Stat. 2560.) Editorial Notes REFERENCES IN TEXT Sections 13 and 15(d) of the Securities Exchange Act of 1934, referred to in subsec. (e)(1), are classified to sec- tions 78m and 78o(d), respectively, of Title 15, Com- merce and Trade. AMENDMENTS 2010—Subsec. (b). Pub. L. 111–240 amended subsec. (b) generally. Prior to amendment, subsec. (b) specified the amount of the penalty under subsec. (a), both in gen- eral and with respect to a listed transaction, in the case of a natural person or in any other case. 2007—Subsec. (e)(2)(C). Pub. L. 110–172 substituted ‘‘section 6662A(e)(2)(B)’’ for ‘‘section 6662A(e)(2)(C)’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Pub. L. 111–240, title II, § 2041(b), Sept. 27, 2010, 124 Stat. 2560, provided that: ‘‘The amendment made by this section [amending this section] shall apply to pen- alties assessed after December 31, 2006.’’ EFFECTIVE DATE Pub. L. 108–357, title VIII, § 811(c), Oct. 22, 2004, 118 Stat. 1577, as amended by Pub. L. 109–135, title IV, § 403(w), Dec. 21, 2005, 119 Stat. 2629, provided that: ‘‘The amendments made by this section [enacting this sec- tion] shall apply to returns and statements the due date for which is after the date of the enactment of this Act [Oct. 22, 2004] and which were not filed before such date.’’ REPORT Pub. L. 108–357, title VIII, § 811(d), Oct. 22, 2004, 118 Stat. 1577, provided that: ‘‘The Commissioner of Inter- nal Revenue shall annually report to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate— ‘‘(1) a summary of the total number and aggregate amount of penalties imposed, and rescinded, under section 6707A of the Internal Revenue Code of 1986, and ‘‘(2) a description of each penalty rescinded under section 6707(c) of such Code and the reasons there- for.’’ § 6708. Failure to maintain lists of advisees with respect to reportable transactions (a) Imposition of penalty (1) In general If any person who is required to maintain a list under section 6112(a) fails to make such list available upon written request to the Sec- retary in accordance with section 6112(b) with- in 20 business days after the date of such re- quest, such person shall pay a penalty of $10,000 for each day of such failure after such 20th day. (2) Reasonable cause exception No penalty shall be imposed by paragraph (1) with respect to the failure on any day if such failure is due to reasonable cause. (b) Penalty in addition to other penalties The penalty imposed by this section shall be in addition to any other penalty provided by law. (Added Pub. L. 98–369, div. A, title I, § 142(b), July 18, 1984, 98 Stat. 682; amended Pub. L. 99–514, title XV, § 1534(a), Oct. 22, 1986, 100 Stat. 2750; Pub. L. 108–357, title VIII, §§ 815(b)(5)(A), 817(a), Oct. 22, 2004, 118 Stat. 1583, 1584.) Editorial Notes CODIFICATION Another section 6708 was renumbered section 6709 of this title. AMENDMENTS 2004—Pub. L. 108–357, § 815(b)(5)(A), substituted ‘‘advisees with respect to reportable transactions’’ for ‘‘investors in potentially abusive tax shelters’’ in sec- tion catchline. Subsec. (a). Pub. L. 108–357, § 817(a), amended heading and text of subsec. (a) generally. Prior to amendment, text read as follows: ‘‘Any person who fails to meet any requirement imposed by section 6112 shall pay a pen- alty of $50 for each person with respect to whom there is such a failure, unless it is shown that such failure is due to reasonable cause and not due to willful neglect. The maximum penalty imposed under this subsection for any calendar year shall not exceed $100,000.’’ 1986—Subsec. (a). Pub. L. 99–514 substituted ‘‘$100,000’’ for ‘‘$50,000’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2004 AMENDMENT Amendment by section 815(b)(5)(A) of Pub. L. 108–357 applicable to transactions with respect to which mate- rial aid, assistance, or advice referred to in section 6111(b)(1)(A)(i) of this title is provided after Oct. 22, 2004, see section 815(c) of Pub. L. 108–357, set out as a note under section 6111 of this title. Pub. L. 108–357, title VIII, § 817(b), Oct. 22, 2004, 118 Stat. 1584, provided that: ‘‘The amendment made by this section [amending this section] shall apply to re- quests made after the date of the enactment of this Act [Oct. 22, 2004].’’ EFFECTIVE DATE OF 1986 AMENDMENT Pub. L. 99–514, title XV, § 1534(b), Oct. 22, 1986, 100 Stat. 2750, provided that: ‘‘The amendments made by this section [amending this section] shall apply to fail- ures occurring or continuing after the date of the en- actment of this Act [Oct. 22, 1986].’’ EFFECTIVE DATE Section applicable to any interest which is first sold to any investor after Aug. 31, 1984, see section 142(d) of Pub. L. 98–369, set out as a note under section 6112 of this title. § 6709. Penalties with respect to mortgage credit certificates (a) Negligence If—