Failure to furnish copy to taxpayer
Any person who is a tax return preparer with respect to any return or claim for refund who fails to comply with section 6107(a) with respect to such return or claim shall pay a penalty of $50 for such 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 on any person with respect to documents filed during any calendar year shall not exceed $25,000.
Failure to sign return
Any person who is a tax return preparer with respect to any return or claim for refund, who is required by regulations prescribed by the Secretary to sign such return or claim, and who fails to comply with such regulations with respect to such return or claim shall pay a penalty of $50 for such 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 on any person with respect to documents filed during any calendar year shall not exceed $25,000.
Failure to furnish identifying number
Any person who is a tax return preparer with respect to any return or claim for refund and who fails to comply with section 6109(a)(4) with respect to such return or claim shall pay a penalty of $50 for such 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 on any person with respect to documents filed during any calendar year shall not exceed $25,000.
Failure to retain copy or list
Any person who is a tax return preparer with respect to any return or claim for refund who fails to comply with section 6107(b) with respect to such return or claim shall pay a penalty of $50 for each such 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 on any person with respect to any return period shall not exceed $25,000.
Failure to file correct information returns
Negotiation of check
Any person who is a tax return preparer who endorses or otherwise negotiates (directly or through an agent) any check made in respect of the taxes imposed by this title which is issued to a taxpayer (other than the tax return preparer) shall pay a penalty of $500 with respect to each such check. The preceding sentence shall not apply with respect to the deposit by a bank (within the meaning of section 581) of the full amount of the check in the taxpayer’s account in such bank for the benefit of the taxpayer.
Failure to be diligent in determining eligibility for certain tax benefits
Adjustment for inflation
In general
In the case of any failure relating to a return or claim for refund filed in a calendar year beginning after 2014, each of the dollar amounts under subsections (a), (b), (c), (d), (e), (f), and (g) shall be increased by an amount equal to such dollar amount multiplied by the cost-of-living adjustment determined under section 1(f)(3) for the calendar year determined by substituting “calendar year 2013” for “calendar year 2016” in subparagraph (A)(ii) thereof.
Rounding
Pub. L. 94–455, title XII, § 1203(f)90 Stat. 1692 Pub. L. 95–600, title VII, § 701(cc)(1)92 Stat. 2923 Pub. L. 98–369, div. A, title I, § 179(b)(2)98 Stat. 718 Pub. L. 99–44, § 1(b)99 Stat. 77 Pub. L. 101–239, title VII, § 7733(a)103 Stat. 2402 Pub. L. 105–34, title X, § 1085(a)(2)111 Stat. 956 Pub. L. 110–28, title VIII, § 8246(a)(2)(G)(i)121 Stat. 202 Pub. L. 112–41, title V, § 501(a)125 Stat. 459 Pub. L. 113–295, div. B, title II, § 208(c)128 Stat. 4073 Pub. L. 114–113, div. Q, title II, § 207(a)129 Stat. 3082 Pub. L. 115–97, title I131 Stat. 2058 Pub. L. 115–141, div. U, title IV, § 401(a)(299)(C)132 Stat. 1198 (Added , , ; amended , , ; , , ; , , ; –(d), , , 2403; , , ; , (ii), , ; , , ; , , ; , , ; , §§ 11001(b), 11002(d)(1)(MM), , , 2060; , (309), (310), , , 1199.)
Inflation Adjusted Items for Certain Years
section 1 of this titleFor inflation adjustment of certain items in this section, see Revenue Procedures listed in a table under .
Editorial Notes
Amendments
Pub. L. 115–141, § 401(a)(299)(C)2018—Subsec. (h)(1). , inserted “an amount equal to” after “increased by” and “for the calendar year” after “section 1(f)(3)”.
Pub. L. 115–141, § 401(a)(309)Subsec. (h)(2). , substituted “paragraph (1)” for “subparagraph (A)” in introductory provisions.
Pub. L. 115–141, § 401(a)(310)Subsec. (h)(2)(B). , substituted “subparagraph (A)” for “clause (i)”.
Pub. L. 115–97, § 11001(b)2017—Subsec. (g). , amended subsec. (g) generally. Prior to amendment, text read as follows: “Any person who is a tax return preparer with respect to any return or claim for refund who fails to comply with due diligence requirements imposed by the Secretary by regulations with respect to determining eligibility for, or the amount of, the credit allowable by section 24, 25A(a)(1), or 32 shall pay a penalty of $500 for each such failure.”
Pub. L. 115–97, § 11002(d)(1)(MM)Subsec. (h)(1). , substituted “for ‘calendar year 2016’ in subparagraph (A)(ii)” for “for ‘calendar year 1992’ in subparagraph (B)”.
Pub. L. 114–1132015—Subsec. (g). inserted “child tax credit; American Opportunity Tax Credit; and” before “earned income credit” in heading and substituted “section 24, 25A(a)(1), or 32” for “section 32” in text.
Pub. L. 113–2952014—Subsec. (h). added subsec. (h).
Pub. L. 112–412011—Subsec. (g). substituted “$500” for “$100”.
Pub. L. 110–28, § 8246(a)(2)(G)(i)(I)2007—, struck out “income” before “tax” in section catchline.
Pub. L. 110–28, § 8246(a)(2)(G)(i)(II)Subsecs. (a) to (d). , substituted “a tax return preparer” for “an income tax return preparer”.
Pub. L. 110–28, § 8246(a)(2)(G)(i)(II)Subsec. (f). , (ii), substituted “a tax return preparer” for “an income tax return preparer”, “this title” for “subtitle A”, and “the tax return preparer” for “the income tax return preparer”.
Pub. L. 110–28, § 8246(a)(2)(G)(i)(II)Subsec. (g). , substituted “a tax return preparer” for “an income tax return preparer”.
Pub. L. 105–341997—Subsec. (g). added subsec. (g).
Pub. L. 101–239, § 7733(a)1989—Subsecs. (a) to (c). –(c), substituted “$50” for “$25” and inserted at end “The maximum penalty imposed under this subsection on any person with respect to documents filed during any calendar year shall not exceed $25,000.”
Pub. L. 101–239, § 7733(d)Subsec. (e). , substituted “returns” for “return” in heading and amended text generally. Prior to amendment, text read as follows: “Any person required to make a return under section 6060 who fails to comply with the requirements of such section shall pay a penalty of—
“(1) $100 for each failure to file a return as required under such section, and
“(2) $5 for each failure to set forth an item in the return as required under such section,
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 on any person with respect to any return period shall not exceed $20,000.”
Pub. L. 99–44Pub. L. 98–369, § 179(b)(2)1985—Subsec. (b). repealed , which amended subsec. (b), and provided that the Internal Revenue Code of 1954 [now 1986] [this title] shall be applied and administered as if section 179(b)(2) (and the amendments made by such section) had not been enacted. See 1984 Amendment note and Effective Date of 1985 Amendment note below.
Pub. L. 98–369section 274(d) of this title1984—Subsec. (b). amended subsec. (b) generally, substituting provisions dealing with failure to inform taxpayer of certain recordkeeping requirements of or to sign returns, for provisions dealing with failure to sign returns. See 1985 Amendment note above.
Pub. L. 95–6001978—Subsec. (f). inserted provision relating to deposits by a bank.
Statutory Notes and Related Subsidiaries
Effective Date of 2017 Amendment
section 11001(b) of Pub. L. 115–97section 11001(c) of Pub. L. 115–97section 1 of this titleAmendment by applicable to taxable years beginning after , see , set out as a note under .
section 11002(d)(1)(MM) of Pub. L. 115–97section 11002(e) of Pub. L. 115–97section 1 of this titleAmendment by applicable to taxable years beginning after , see , set out as a note under .
Effective Date of 2015 Amendment
Pub. L. 114–113, div. Q, title II, § 207(c)129 Stat. 3083
Effective Date of 2014 Amendment
Pub. L. 113–295section 208(h) of Pub. L. 113–295section 6651 of this titleAmendment by applicable to returns or claims for refund filed after , see , set out as a note under .
Effective Date of 2011 Amendment
Pub. L. 112–41section 501(b) of Pub. L. 112–41section 3805 of Title 19Amendment by applicable to returns required to be filed after , see , set out in a note under , Customs Duties.
Effective Date of 2007 Amendment
Pub. L. 110–28section 8246(c) of Pub. L. 110–28section 6060 of this titleAmendment by applicable to returns prepared after , see , set out as a note under .
Effective Date of 1997 Amendment
Pub. L. 105–34section 1085(e)(1) of Pub. L. 105–34section 32 of this titleAmendment by applicable to taxable years beginning after , see , set out as a note under .
Effective Date of 1989 Amendment
Pub. L. 101–239, title VII, § 7733(e)103 Stat. 2403
Effective Date of 1985 Amendment
Pub. L. 99–44section 179(b) of Pub. L. 98–369section 6(a) of Pub. L. 99–44section 274 of this titleAmendment by effective as if included in the amendments made by , see , set out as a note under .
Effective Date of 1984 Amendment
Pub. L. 98–369section 179(d)(2) of Pub. L. 98–369section 280F of this titleAmendment by applicable to taxable years beginning after , see , set out as an Effective Date note under .
Effective Date of 1978 Amendment
Pub. L. 95–600, title VII, § 701(cc)(3)92 Stat. 2924
Repeal of Regulations Covering Substantiation by Adequate Contemporaneous Records
section 179(b)(2) of Pub. L. 98–369section 1(c) of Pub. L. 99–44section 274 of this titleRegulations issued before , to carry out the amendment of subsec. (b) of this section by to have no force and effect, see , set out as a note under .