26 U.S.C. § 6679 — Failure to file returns, etc., with respect

Page 3791 TITLE 26—INTERNAL REVENUE CODE § 6679 221(b)(3), Feb. 26, 1964, 78 Stat. 37, 75; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 96–167, § 7(b)(2), Dec. 29, 1979, 93 Stat. 1277; Pub. L. 97–34, title VII, § 723(a)(2), (b)(2), Aug. 13, 1981, 95 Stat. 343, 344; Pub. L. 97–248, title III, §§ 309(b)(3), 311(a)(2), 312(b), 314(b), 315(c), Sept. 3, 1982, 96 Stat. 595, 600, 602, 605, 607; Pub. L. 97–448, title II, § 201(i)(3), Jan. 12, 1983, 96 Stat. 2395; Pub. L. 98–67, title I, § 105(b)(2), Aug. 5, 1983, 97 Stat. 381; Pub. L. 98–369, div. A, title I, §§ 145(b)(3), 146(b)(3), 148(b)(3), 149(b)(2), (3), 155(b)(2)(B), title VII, § 714(f), (q)(3), July 18, 1984, 98 Stat. 685, 686, 689, 690, 693, 961, 966; Pub. L. 99–514, title XVIII, § 1811(c)(1), Oct. 22, 1986, 100 Stat. 2833, related to pen- alties for failure to furnish certain statements. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF REPEAL Repeal applicable to returns the due date for which (determined without regard to extensions) is after Dec. 31, 1986, see section 1501(e) of Pub. L. 99–514, set out as an Effective Date note under section 6721 of this title. § 6679. Failure to file returns, etc., with respect to foreign corporations or foreign partner- ships (a) Civil penalty (1) In general In addition to any criminal penalty provided by law, any person required to file a return under section 6046 or 6046A who fails to file such return at the time provided in such sec- tion, or who files a return which does not show the information required pursuant to such sec- tion, shall pay a penalty of $10,000, unless it is shown that such failure is due to reasonable cause. (2) Increase in penalty where failure continues after notification If any failure described in paragraph (1) con- tinues for more than 90 days after the day on which the Secretary mails notice of such fail- ure to the United States person, such person shall pay a penalty (in addition to the amount required under paragraph (1)) of $10,000 for each 30-day period (or fraction thereof) during which such failure continues after the expira- tion of such 90-day period. The increase in any penalty under this paragraph shall not exceed $50,000. (b) Deficiency procedures not to apply Subchapter B of chapter 63 (relating to defi- ciency procedure for income, estate, gift, and certain excise taxes) shall not apply in respect of the assessment or collection of any penalty imposed by subsection (a). (Added Pub. L. 87–834, § 20(c), Oct. 16, 1962, 76 Stat. 1062; amended Pub. L. 91–172, title I, § 101(j)(54), Dec. 30, 1969, 83 Stat. 532; Pub. L. 93–406, title II, § 1016(a)(22), Sept. 2, 1974, 88 Stat. 931; Pub. L. 97–248, title III, § 340(b)(1), (2), title IV, § 405(b), (c)(2), Sept. 3, 1982, 96 Stat. 634, 670; Pub. L. 97–448, title III, § 306(c)(2), Jan. 12, 1983, 96 Stat. 2406; Pub. L. 105–34, title XI, § 1143(b), Aug. 5, 1997, 111 Stat. 983; Pub. L. 108–357, title IV, § 413(c)(29), Oct. 22, 2004, 118 Stat. 1509; Pub. L. 115–141, div. U, title IV, § 401(a)(308), Mar. 23, 2018, 132 Stat. 1199.) Editorial Notes AMENDMENTS 2018—Subsec. (a)(1). Pub. L. 115–141 substituted ‘‘sec- tion 6046 or 6046A’’ for ‘‘section 6046 and 6046A’’. 2004—Subsec. (a)(1). Pub. L. 108–357, § 413(c)(29)(A), which directed substitution of ‘‘6046 and 6046A’’ for ‘‘6035, 6046, and 6046A’’ was executed by making the sub- stitution for ‘‘6035, 6046, or 6046A’’ to reflect the prob- able intent of Congress. Subsec. (a)(3). Pub. L. 108–357, § 413(c)(29)(B), struck out heading and text of par. (3). Text read as follows: ‘‘In the case of a return required under section 6035, paragraph (1) shall be applied by substituting ‘$1,000’ for ‘$10,000’, and paragraph (2) shall not apply.’’ 1997—Subsec. (a). Pub. L. 105–34 reenacted heading without change and amended text generally. Prior to amendment, text read as follows: ‘‘In addition to any criminal penalty provided by law, any person required to file a return under section 6035, 6046, or 6046A who fails to file such return at the time provided in such section, or who files a return which does not show the information required pursuant to such section, shall pay a penalty of $1,000, unless it is shown that such fail- ure is due to reasonable cause.’’ 1983—Pub. L. 97–448 amended language of Pub. L. 97–248, § 405(b), (c)(2), to clarify an ambiguity created by the conflicting language of §§ 340(b)(1), (2) and 405(b), (c)(2) of Pub. L. 97–248. See 1982 Amendment note below. 1982—Pub. L. 97–248, §§ 340(b)(2), 405(c)(2), as amended by Pub. L. 97–448, § 306(c)(2)(B), substituted ‘‘Failure to file returns, etc., with respect to foreign corporations or foreign partnerships’’ for ‘‘Failure to file returns as to organization or reorganization of foreign corpora- tions and as to acquisitions of their stock’’ in section catchline. Subsec. (a). Pub. L. 97–248, §§ 340(b)(1), 405(b), as amended by Pub. L. 97–448, § 306(a)(2)(A), substituted ‘‘section 6035, 6046, or 6046A’’ for ‘‘section 6046’’. 1974—Subsec. (b). Pub. L. 93–406 substituted ‘‘and cer- tain excise’’ for ‘‘chapter 42’’. 1969—Subsec. (b). Pub. L. 91–172 inserted reference to chapter 42 taxes. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2004 AMENDMENT Amendment by Pub. L. 108–357 applicable to taxable years of foreign corporations beginning after Dec. 31, 2004, and to taxable years of United States shareholders with or within which such taxable years of foreign cor- porations end, see section 413(d)(1) of Pub. L. 108–357, set out as an Effective and Termination Dates of 2004 Amendments note under section 1 of this title. EFFECTIVE DATE OF 1997 AMENDMENT Amendment by Pub. L. 105–34 applicable to transfers and changes after Aug. 5, 1997, see section 1143(c) of Pub. L. 105–34, set out as a note under section 6046A of this title. EFFECTIVE DATE OF 1983 AMENDMENT Amendment by Pub. L. 97–448 effective as if included in the provisions of the Tax Equity and Fiscal Respon- sibility Act of 1982, Pub. L. 97–248, to which such amendment relates, see section 311(d) of Pub. L. 97–448, set out as a note under section 31 of this title. EFFECTIVE DATE OF 1982 AMENDMENT Pub. L. 97–248, title III, § 340(c), Sept. 3, 1982, 96 Stat. 634, provided that: ‘‘The amendment made by this sec- tion [amending this section and section 6035 of this title] shall apply to taxable years of foreign corpora- tions beginning after the date of the enactment of this Act [Sept. 3, 1982].’’ Amendment by section 405(b), (c)(2) of Pub. L. 97–248 applicable with respect to acquisitions or dispositions of, or substantial changes in, interests in foreign part- Page 3792 TITLE 26—INTERNAL REVENUE CODE [§ 6680 nerships occurring after Sept. 3, 1982, see section 407(b) of Pub. L. 97–248, set out as an Effective Date note under section 6046A of this title. EFFECTIVE DATE OF 1974 AMENDMENT Amendment by Pub. L. 93–406 applicable, except as otherwise provided in section 1017(c) through (i) of Pub. L. 93–406, for plan years beginning after Sept. 2, 1974, but, in the case of plans in existence on Jan. 1, 1974, amendment by Pub. L. 93–406 applicable for plan years beginning after Dec. 31, 1975, see section 1017 of Pub. L. 93–406, set out as an Effective Date; Transitional Rules note under section 410 of this title. EFFECTIVE DATE OF 1969 AMENDMENT Amendment by Pub. L. 91–172 effective Jan. 1, 1970, see section 101(k)(1) of Pub. L. 91–172, set out as an Ef- fective Date note under section 4940 of this title. [§ 6680. Repealed. Pub. L. 94–455, title XIX, § 1904(b)(10)(A)(vi)(I), Oct. 4, 1976, 90 Stat. 1817] Section, added Pub. L. 88–563, § 6(a), Sept. 2, 1964, 78 Stat. 845; amended Pub. L. 91–128, § 4(h)(1), Nov. 26, 1969, 83 Stat. 268; Pub. L. 92–9, § 3(j)(2), Apr. 1, 1971, 85 Stat. 22, related to failure to file interest equalization tax re- turns. [§ 6681. Repealed. Pub. L. 94–455, title XIX, § 1904(b)(10)(D)(i), Oct. 4, 1976, 90 Stat. 1817] Section, added Pub. L. 88–563, § 6(a), Sept. 2, 1964, 78 Stat. 845; amended Pub. L. 90–59, § 4(d), July 1, 1967, 81 Stat. 155; Pub. L. 90–73, § 2(d), Aug. 29, 1967, 81 Stat. 176; Pub. L. 92–9, § 3(k)(1)–(3), Apr. 1, 1971, 85 Stat. 22, related to false equalization tax certificates. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF REPEAL Pub. L. 94–455, title XIX, § 1904(b)(10)(D)(iii), Oct. 4, 1976, 90 Stat. 1817, provided that: ‘‘The amendments made by this subparagraph [repealing this section] shall apply with respect to actions occurring after June 30, 1974.’’ § 6682. False information with respect to with- holding (a) Civil penalty In addition to any criminal penalty provided by law, if— (1) any individual makes a statement under section 3402 or section 3406 which results in a decrease in the amounts deducted and with- held under chapter 24, and (2) as of the time such statement was made, there was no reasonable basis for such state- ment, such individual shall pay a penalty of $500 for such statement. (b) Exception The Secretary may waive (in whole or in part) the penalty imposed under subsection (a) if the taxes imposed with respect to the individual under subtitle A for the taxable year are equal to or less than the sum of— (1) the credits against such taxes allowed by part IV of subchapter A of chapter 1, and (2) the payments of estimated tax which are considered payments on account of such taxes. (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 to the assessment or collection of any penalty imposed by subsection (a). (Added Pub. L. 89–368, title I, § 101(e)(4)(A), Mar. 15, 1966, 80 Stat. 61; amended Pub. L. 91–172, title I, § 101(j)(55), Dec. 30, 1969, 83 Stat. 532; Pub. L. 93–406, title II, § 1016(a)(23), Sept. 2, 1974, 88 Stat. 931; Pub. L. 97–34, title VII, § 721(a), Aug. 13, 1981, 95 Stat. 340; Pub. L. 97–248, title III, §§ 306(a), 308(a), Sept. 3, 1982, 96 Stat. 588, 591; Pub. L. 98–67, title I, §§ 102(a), 107(a), Aug. 5, 1983, 97 Stat. 369, 382.) Editorial Notes AMENDMENTS 1983—Subsec. (a)(1). Pub. L. 98–67 inserted reference to section 3406 and repealed amendments made by Pub. L. 97–248. See 1982 Amendment note below. 1982—Subsec. (a)(1). Pub. L. 97–248 provided that, ap- plicable to payments of interest, dividends, and patron- age dividends paid or credited after June 30, 1983, par. (1) is amended by inserting ‘‘or section 3452(f)(1)(A)’’ after ‘‘section 3402’’. Section 102(a), (b) of Pub. L. 98–67, title I, Aug. 5, 1983, 97 Stat. 369, repealed subtitle A (§§ 301–308) of title III of Pub. L. 97–248 as of the close of June 30, 1983, and provided that the Internal Revenue Code of 1954 [now 1986] [this title] shall be applied and administered (subject to certain exceptions) as if such subtitle A (and the amendments made by such subtitle A) had not been enacted. 1981—Pub. L. 97–34 struck out ‘‘allowances based on itemized deductions’’ after ‘‘withholding’’ in section catchline. Subsec. (a). Pub. L. 97–34 substituted provisions relat- ing to imposition of penalty of $500 for statement under section 3402 resulting in decreased amounts withheld under chapter 24 and no reasonable basis existed for making such statement at the time it was made, for provisions relating to imposition of penalty of $50 for statement under section 3402(f)(1)(F) concerning amount of wages under chapter 24, or itemized deduc- tions under section 3402(m), and provisions setting forth conditions for mitigation of such penalty. Subsecs. (b), (c). Pub. L. 97–34 added subsec. (b) and redesignated former subsec. (b) as (c). 1974—Subsec. (b). Pub. L. 93–406 substituted ‘‘and cer- tain excise’’ for ‘‘chapter 42.’’ 1969—Subsec. (b). Pub. L. 91–172 inserted reference to chapter 42 taxes. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1983 AMENDMENT Amendment by section 107(a) of Pub. L. 98–67 effec- tive Aug. 5, 1983, see section 110(c) of Pub. L. 98–67, set out as a note under section 31 of this title. EFFECTIVE DATE OF 1981 AMENDMENT Pub. L. 97–34, title VII, § 721(d), Aug. 13, 1981, 95 Stat. 341, provided that: ‘‘The amendments made by this sec- tion [amending sections 6682 and 7205 of this title] shall apply to acts and failures to act after December 31, 1981.’’ EFFECTIVE DATE OF 1974 AMENDMENT Amendment by Pub. L. 93–406 applicable, except as otherwise provided in section 1017(c) through (i) of Pub. L. 93–406, for plan years beginning after Sept. 2, 1974, but, in the case of plans in existence on Jan. 1, 1974, amendment by Pub. L. 93–406 applicable for plan years beginning after Dec. 31, 1975, see section 1017 of Pub. L. 93–406, set out as an Effective Date; Transitional Rules note under section 410 of this title. EFFECTIVE DATE OF 1969 AMENDMENT Amendment by Pub. L. 91–172 effective Jan. 1, 1970, see section 101(k)(1) of Pub. L. 91–172, set out as an Ef- fective Date note under section 4940 of this title.