Reports
In general
If a person required to file a report under a provision referred to in paragraph (2) fails to file such report at the time and in the manner required by such provision, such person shall pay a penalty of $50 for each failure unless it is shown that such failure is due to reasonable cause.
Provisions
Penalties relating to nondeductible contributions
Overstatement of designated nondeductible contributions
Failure to file form
oAny individual who fails to file a form required to be filed by the Secretary under section 408()(4) shall pay a penalty of $50 for each such failure unless it is shown that such failure is due to reasonable cause.
Penalties relating to simple retirement accounts
Employer penalties
lAn employer who fails to provide 1 or more notices required by section 408()(2)(C) shall pay a penalty of $50 for each day on which such failures continue.
Trustee and issuer penalties
Reasonable cause exception
No penalty shall be imposed under this subsection with respect to any failure which the taxpayer shows was due to reasonable cause.
Deficiency procedures not to apply
Subchapter B of chapter 63 (relating to deficiency procedures for income, estate, gift, and certain excise taxes) does not apply to the assessment or collection of any penalty imposed by this section.
Pub. L. 93–406, title II, § 2002(f)88 Stat. 967Pub. L. 96–222, title I, § 101(a)(10)(H)94 Stat. 203Pub. L. 98–369, div. A, title I, § 147(b)98 Stat. 687Pub. L. 99–514, title XI, § 1102(d)(1)100 Stat. 2416Pub. L. 100–647, title I, § 1011(b)(4)(A)102 Stat. 3456Pub. L. 104–188, title I110 Stat. 1796Pub. L. 104–191, title III, § 301(g)110 Stat. 2052Pub. L. 105–34, title II111 Stat. 812Pub. L. 105–277, div. J, title IV, § 4006(c)(4)112 Stat. 2681–913Pub. L. 106–554, § 1(a)(7) [title II, § 202(b)(2)(E)]114 Stat. 2763Pub. L. 107–16, title IV, § 402(a)(4)(A)115 Stat. 60Pub. L. 107–22, § 1(b)(2)(C)115 Stat. 197Pub. L. 108–173, title XII, § 1201(g)117 Stat. 2479Pub. L. 113–295, div. B, title I, § 102(c)128 Stat. 4062Pub. L. 119–21, title VII, § 70204(a)(3)139 Stat. 185(Added , , ; amended , , ; , , ; , (2)(A), (B), , ; , (B)(i), , , 3457; , §§ 1421(b)(4)(B), 1455(d)(3), , , 1818; , , ; , §§ 211(e)(2)(B), (C), 213(c), title XVI, §§ 1601(d)(1)(C)(ii), 1602(a)(4), , , 816, 1087, 1094; , , ; , , , 2763A–629; , , ; , , ; , , ; , , ; , , .)
Editorial Notes
Amendments
Pub. L. 119–212025—Subsec. (a)(2)(G). added subpar. (G).
Pub. L. 113–2952014—Subsec. (a)(2)(E), (F). added subpar. (E) and redesignated former subpar. (E) as (F).
Pub. L. 108–1732003—Subsec. (a)(2)(C) to (E). added subpar. (C) and redesignated former subpars. (C) and (D) as (D) and (E), respectively.
Pub. L. 107–162001—Subsec. (a)(2)(C). substituted “qualified tuition” for “qualified State tuition”.
Pub. L. 107–22Subsec. (a)(2)(D). substituted “Coverdell education savings” for “education individual retirement”.
Pub. L. 106–5542000—Subsec. (a)(2)(B). substituted “Archer MSAs” for “medical savings accounts”.
Pub. L. 105–2771998—Subsec. (a)(2)(C), (D). substituted “section” for “Section”.
Pub. L. 105–34, § 211(e)(2)(C)1997—, substituted “certain tax-favored” for “individual retirement” in section catchline.
Pub. L. 105–34, § 1602(a)(4)Subsec. (a). , inserted concluding provisions.
Pub. L. 105–34, § 211(e)(2)(B)Subsec. (a)(2)(C). , added subpar. (C).
Pub. L. 105–34, § 213(c)Subsec. (a)(2)(D). , added subpar. (D).
Pub. L. 105–34, § 1601(d)(1)(C)(ii)Subsec. (c)(2). , inserted “and issuer” before “penalties” in heading and “or issuer” before “who fails” in introductory provisions.
Pub. L. 104–191l1996—Subsec. (a). inserted heading and amended text generally. Prior to amendment, text read as follows: “The person required by subsection (i) or () of section 408 to file a report regarding an individual retirement account or individual retirement annuity at the time and in the manner required by such subsection shall pay a penalty of $50 for each failure unless it is shown that such failure is due to reasonable cause. This subsection shall not apply to any report which is an information return described in section 6724(d)(1)(C)(i) or a payee statement described in section 6724(d)(2)(W).”
Pub. L. 104–188, § 1455(d)(3), inserted at end “This subsection shall not apply to any report which is an information return described in section 6724(d)(1)(C)(i) or a payee statement described in section 6724(d)(2)(W).”
Pub. L. 104–188, § 1421(b)(4)(B)Subsecs. (c), (d). , added subsec. (c) and redesignated former subsec. (c) as (d).
Pub. L. 100–647, § 1011(b)(4)(B)(i)1988—, substituted “penalties relating to” for “overstatement of” in section catchline.
Pub. L. 100–647, § 1011(b)(4)(A)Subsec. (b). , substituted “Penalties relating to” for “Overstatement of designated” in heading and amended text generally. Prior to amendment, text read as follows: “Any individual who—
o“(1) is required to furnish information under section 408()(4) as to the amount of designated nondeductible contributions made for any taxable year, and
“(2) overstates the amount of such contributions made for such taxable year,
shall pay a penalty of $100 for each such overstatement unless it is shown that such overstatement is due to reasonable cause.”
Pub. L. 99–514, § 1102(d)(2)(B)1986—, inserted “; overstatement of designated nondeductible contributions” in section catchline.
Pub. L. 99–514, § 1102(d)(1)Subsec. (b). , added subsec. (b). Former subsec. (b) redesignated (c).
Pub. L. 99–514, § 1102(d)(1)Subsec. (c). , (2)(A), redesignated former subsec. (b) as (c) and substituted “this section” for “subsection (a)”.
Pub. L. 98–3691984—Subsec. (a). substituted “$50” for “$10”.
Pub. L. 96–222l1980—Subsec. (a). substituted “subsection (i) or () of section 408 to file” for “section 408(i) to file”, and “such subsection shall pay” for “section 408(i) shall pay”.
Statutory Notes and Related Subsidiaries
Effective Date of 2025 Amendment
Pub. L. 119–21section 70204(e) of Pub. L. 119–21section 128 of this titleAmendment by applicable to taxable years beginning after , see , set out as an Effective Date note under .
Effective Date of 2014 Amendment
Pub. L. 113–295section 102(f)(1) of Pub. L. 113–295section 552a of Title 5Amendment by applicable to taxable years beginning after , see , set out as a note under , Government Organization and Employees.
Effective Date of 2003 Amendment
Pub. L. 108–173section 1201(k) of Pub. L. 108–173section 62 of this titleAmendment by applicable to taxable years beginning after , see , set out as a note under .
Effective Date of 2001 Amendments
Pub. L. 107–22section 1(c) of Pub. L. 107–22section 26 of this titleAmendment by effective , see , set out as an Effective and Termination Dates of 2001 Amendment note under .
Pub. L. 107–16section 402(h) of Pub. L. 107–16section 72 of this titleAmendment by applicable to taxable years beginning after , see , set out as a note under .
Effective Date of 1997 Amendment
Pub. L. 105–34section 211(f) of Pub. L. 105–34section 529 of this titleAmendment by section 211(e)(2)(B), (C) of effective , see , set out as a note under .
section 213(c) of Pub. L. 105–34section 213(f) of Pub. L. 105–34section 26 of this titleAmendment by applicable to taxable years beginning after , see , set out as a note under .
section 1601(d)(1)(C)(ii) of Pub. L. 105–34Pub. L. 104–188section 1601(j) of Pub. L. 105–34section 23 of this titleAmendment by effective as if included in the provisions of the Small Business Job Protection Act of 1996, , to which it relates, see , set out as a note under .
section 1602(a)(4) of Pub. L. 105–34Pub. L. 104–191section 1602(i) of Pub. L. 105–34section 26 of this titleAmendment by effective as if included in the provisions of the Health Insurance Portability and Accountability Act of 1996, , to which such amendment relates, see , set out as a note under .
Effective Date of 1996 Amendments
Pub. L. 104–191section 301(j) of Pub. L. 104–191section 62 of this titleAmendment by applicable to taxable years beginning after , see , set out as a note under .
section 1421(b)(4)(B) of Pub. L. 104–188section 1421(e) of Pub. L. 104–188section 72 of this titleAmendment by applicable to taxable years beginning after , see , set out as a note under .
section 1455(d)(3) of Pub. L. 104–188section 1455(e) of Pub. L. 104–188section 408 of this titleAmendment by applicable to returns, reports, and other statements the due date for which (determined without regard to extensions) is after , see , set out as a note under .
Effective Date of 1988 Amendment
Pub. L. 100–647Pub. L. 99–514section 1019(a) of Pub. L. 100–647section 1 of this titleAmendment by effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, , to which such amendment relates, see , set out as a note under .
Effective Date of 1986 Amendment
Pub. L. 99–514section 1102(g) of Pub. L. 99–514section 219 of this titleAmendment by applicable to contributions and distributions for taxable years beginning after , see , set out as a note under .
Effective Date of 1984 Amendment
Pub. L. 98–369section 147(d)(2) of Pub. L. 98–369section 219 of this titleAmendment by applicable to failures occurring after , see , set out as a note under .
Effective Date of 1980 Amendment
Pub. L. 96–222, title I, § 101(b)(1)(F)94 Stat. 205
Effective Date
section 2002(i)(2) of Pub. L. 93–406section 4973 of this titleSection effective , see , set out as a note under .
Plan Amendments Not Required Until January 1, 1998
Pub. L. 104–188section 1465 of Pub. L. 104–188section 401 of this titleFor provisions directing that if any amendments made by subtitle D [§§ 1401–1465] of title I of require an amendment to any plan or annuity contract, such amendment shall not be required to be made before the first day of the first plan year beginning on or after , see , set out as a note under .
Plan Amendments Not Required Until January 1, 1989
Pub. L. 99–514section 1140 of Pub. L. 99–514section 401 of this titleFor provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§ 1101–1147 and 1171–1177] or title XVIII [§§ 1800–1899A] of require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after , see , as amended, set out as a note under .