Civil penalty
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 section, or who files a return which does not show the information required pursuant to such section, shall pay a penalty of $10,000, unless it is shown that such failure is due to reasonable cause.
Increase in penalty where failure continues after notification
If any failure described in paragraph (1) continues for more than 90 days after the day on which the Secretary mails notice of such failure 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 expiration of such 90-day period. The increase in any penalty under this paragraph shall not exceed $50,000.
Deficiency procedures not to apply
Subchapter B of chapter 63 (relating to deficiency 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).
Pub. L. 87–834, § 20(c)76 Stat. 1062Pub. L. 91–172, title I, § 101(j)(54)83 Stat. 532Pub. L. 93–406, title II, § 1016(a)(22)88 Stat. 931Pub. L. 97–248, title III, § 340(b)(1)96 Stat. 634Pub. L. 97–448, title III, § 306(c)(2)96 Stat. 2406Pub. L. 105–34, title XI, § 1143(b)111 Stat. 983Pub. L. 108–357, title IV, § 413(c)(29)118 Stat. 1509Pub. L. 115–141, div. U, title IV, § 401(a)(308)132 Stat. 1199(Added , , ; amended , , ; , , ; , (2), title IV, § 405(b), (c)(2), , , 670; , , ; , , ; , , ; , , .)
Editorial Notes
Amendments
Pub. L. 115–1412018—Subsec. (a)(1). substituted “section 6046 or 6046A” for “section 6046 and 6046A”.
Pub. L. 108–357, § 413(c)(29)(A)2004—Subsec. (a)(1). , which directed substitution of “6046 and 6046A” for “6035, 6046, and 6046A” was executed by making the substitution for “6035, 6046, or 6046A” to reflect the probable intent of Congress.
Pub. L. 108–357, § 413(c)(29)(B)Subsec. (a)(3). , 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.”
Pub. L. 105–341997—Subsec. (a). 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 failure is due to reasonable cause.”
Pub. L. 97–448Pub. L. 97–248, § 405(b)Pub. L. 97–2481983— amended language of , (c)(2), to clarify an ambiguity created by the conflicting language of §§ 340(b)(1), (2) and 405(b), (c)(2) of . See 1982 Amendment note below.
Pub. L. 97–248Pub. L. 97–448, § 306(c)(2)(B)1982—, §§ 340(b)(2), 405(c)(2), as amended by , 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 corporations and as to acquisitions of their stock” in section catchline.
Pub. L. 97–248Pub. L. 97–448, § 306(a)(2)(A)Subsec. (a). , §§ 340(b)(1), 405(b), as amended by , substituted “section 6035, 6046, or 6046A” for “section 6046”.
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 2004 Amendment
Pub. L. 108–357section 413(d)(1) of Pub. L. 108–357section 1 of this titleAmendment by applicable to taxable years of foreign corporations beginning after , and to taxable years of United States shareholders with or within which such taxable years of foreign corporations end, see , set out as an Effective and Termination Dates of 2004 Amendments note under .
Effective Date of 1997 Amendment
Pub. L. 105–34section 1143(c) of Pub. L. 105–34section 6046A of this titleAmendment by applicable to transfers and changes after , see , set out as a note under .
Effective Date of 1983 Amendment
Pub. L. 97–448Pub. L. 97–248section 311(d) of Pub. L. 97–448section 31 of this titleAmendment by effective as if included in the provisions of the Tax Equity and Fiscal Responsibility Act of 1982, , to which such amendment relates, see , set out as a note under .
Effective Date of 1982 Amendment
Pub. L. 97–248, title III, § 340(c)96 Stat. 634
Pub. L. 97–248section 407(b) of Pub. L. 97–248section 6046A of this titleAmendment by section 405(b), (c)(2) of applicable with respect to acquisitions or dispositions of, or substantial changes in, interests in foreign partnerships occurring after , see , set out as an Effective Date 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 .