Civil penalty
Special rules for returns under section 6048(b)
Gross reportable amount
Reasonable cause exception
No penalty shall be imposed by this section on any failure which is shown to be due to reasonable cause and not due to willful neglect. The fact that a foreign jurisdiction would impose a civil or criminal penalty on the taxpayer (or any other person) for disclosing the required information is not reasonable cause.
Deficiency procedures not to apply
Subchapter B of chapter 63 (relating to deficiency procedures 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).
Pub. L. 87–834, § 7(g)76 Stat. 988Pub. L. 91–172, title I, § 101(j)(53)83 Stat. 531Pub. L. 93–406, title II, § 1016(a)(21)88 Stat. 931Pub. L. 94–455, title X, § 1013(d)(2)90 Stat. 1616Pub. L. 104–188, title I, § 1901(b)110 Stat. 1907Pub. L. 111–147, title V, § 535(a)124 Stat. 115(Added , , ; amended , , ; , , ; , , ; , , ; , , .)
Editorial Notes
Amendments
Pub. L. 111–1472010—Subsec. (a). , in concluding provisions, inserted “the greater of $10,000 or” before “35 percent” and substituted “At such time as the gross reportable amount with respect to any failure can be determined by the Secretary, any subsequent penalty imposed under this subsection with respect to such failure shall be reduced as necessary to assure that the aggregate amount of such penalties do not exceed the gross reportable amount (and to the extent that such aggregate amount already exceeds the gross reportable amount the Secretary shall refund such excess to the taxpayer).” for “In no event shall the penalty under this subsection with respect to any failure exceed the gross reportable amount.”
Pub. L. 104–188, § 1901(b)1996—, substituted “information” for “information returns” in section catchline and amended text generally, substituting present provisions for former provisions which related to civil penalty in subsec. (a) and nonapplicability of deficiency procedures in subsec. (b).
Pub. L. 94–4551976—Subsec. (a). inserted “(or, in the case of a failure with respect to section 6048(c), equal to 5 percent of the value of the corpus of the trust at the close of the taxable year)” after “transferred to a trust”.
Pub. L. 93–4061974—Subsec. (b). substituted “and certain excise” for “chapter 42”.
Pub. L. 91–1721969—Subsec. (b). inserted reference to chapter 42 taxes.
Statutory Notes and Related Subsidiaries
Effective Date of 2010 Amendment
Pub. L. 111–147, title V, § 535(b)124 Stat. 115
Effective Date of 1996 Amendment
Pub. L. 104–188section 6048(a) of this titlesection 6048(b) of this titlesection 6048(c) of this titlesection 1901(d) of Pub. L. 104–188section 6048 of this titleAmendment by , to the extent related to , applicable to reportable events (as defined in such section) occurring after , to the extent related to , applicable to taxable years of United States persons beginning after , and to the extent related to , applicable to distributions received after , see , set out as a note under .
Effective Date of 1976 Amendment
Pub. L. 94–455section 1013(f)(1) of Pub. L. 94–455section 679 of this titleAmendment by applicable to taxable years ending after , but only in the case of foreign trusts created after and transfer of property to foreign trusts after , see , set out as a note under .
Effective Date of 1974 Amendment
Pub. L. 93–406Pub. L. 93–406Pub. L. 93–406section 1017 of Pub. L. 93–406section 410 of this titleAmendment by applicable, except as otherwise provided in section 1017(c) through (i) of , for plan years beginning after , but, in the case of plans in existence on , amendment by applicable for plan years beginning after , see , set out as an Effective Date; Transitional Rules note under .
Effective Date of 1969 Amendment
Pub. L. 91–172section 101(k)(1) of Pub. L. 91–172section 4940 of this titleAmendment by effective , see , set out as an Effective Date note under .