US Code

Public Law 119-73 (01/23/2026)

26 U.S.C. § 6698

Failure to file partnership return

(a)

General rule

In addition to the penalty imposed by section 7203 (relating to willful failure to file return, supply information, or pay tax), if any partnership required to file a return under section 6031, or a partnership adjustment tracking report under section 6226(b)(4)(A), for any taxable year—
(1)
fails to file such return, or such report, at the time prescribed therefor (determined with regard to any extension of time for filing), or
(2)
files a return or a report which fails to show the information required under section 6031 or 6226(b)(4)(A), respectively,
such partnership shall be liable for a penalty determined under subsection (b) for each month (or fraction thereof) during which such failure continues (but not to exceed 12 months), unless it is shown that such failure is due to reasonable cause.
(b)

Amount per month

For purposes of subsection (a), the amount determined under this subsection for any month is the product of—
(1)
$195, multiplied by
(2)
the number of persons who were partners in the partnership during any part of the taxable year.
(c)

Assessment of penalty

The penalty imposed by subsection (a) shall be assessed against the partnership.

(d)

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).

(e)

Adjustment for inflation

(1)

In general

In the case of any return required to be filed in a calendar year beginning after 2014, the $195 dollar amount under subsection (b)(1) 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.

(2)

Rounding

If any amount adjusted under paragraph (1) is not a multiple of $5, such amount shall be rounded to the next lowest multiple of $5.

Pub. L. 95–600, title II, § 211(a)92 Stat. 2817Pub. L. 110–142, § 8(a)121 Stat. 1806Pub. L. 110–458, title I, § 127(a)122 Stat. 5116Pub. L. 111–92, § 16(a)123 Stat. 2996Pub. L. 113–295, div. B, title II, § 208(d)128 Stat. 4073Pub. L. 115–97, title I, § 11002(d)(1)(NN)131 Stat. 2061Pub. L. 115–141, div. U, title II, § 206(n)(2)132 Stat. 1182(Added , , ; amended , (b), , ; , , ; , , ; , , ; , , ; , title IV, § 401(a)(299)(D), (313), , , 1198, 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

Codification

Pub. L. 94–455, § 2005(d)(2)Pub. L. 95–600Pub. L. 96–222Pub. L. 96–223Another section 6698, formerly section 6694, relating to failure to file information with respect to carryover basis property, which was added by , was renumbered section 6698 by , renumbered section 6698A by , and repealed by .

Amendments

Pub. L. 115–141, § 206(n)(2)(A)2018—Subsec. (a). , inserted “, or a partnership adjustment tracking report under section 6226(b)(4)(A),” after “under section 6031” in introductory provisions.

Pub. L. 115–141, § 206(n)(2)(B)Subsec. (a)(1). , inserted “, or such report,” after “such return”.

Pub. L. 115–141, § 206(n)(2)(C)Subsec. (a)(2). , inserted “or a report” after “a return” and “or 6226(b)(4)(A), respectively” after “section 6031”.

Pub. L. 115–141, § 401(a)(313)Subsec. (b)(2). , inserted period at end.

Pub. L. 115–141, § 401(a)(299)(D)Subsec. (e)(1). , inserted “an amount equal to” after “increased by” and “for the calendar year” after “section 1(f)(3)”.

Pub. L. 115–972017—Subsec. (e)(1). substituted “for ‘calendar year 2016’ in subparagraph (A)(ii)” for “for ‘calendar year 1992’ in subparagraph (B)”.

Pub. L. 113–2952014—Subsec. (e). added subsec. (e).

Pub. L. 111–922009—Subsec. (b)(1). substituted “$195” for “$89”.

Pub. L. 110–4582008—Subsec. (b)(1). substituted “$89” for “$85”.

Pub. L. 110–142, § 8(a)2007—Subsec. (a). , substituted “12 months” for “5 months” in concluding provisions.

Pub. L. 110–142, § 8(b)Subsec. (b)(1). , substituted “$85” for “$50”.

Statutory Notes and Related Subsidiaries

Effective Date of 2018 Amendment

section 206(n)(2) of Pub. L. 115–141section 1101 of Pub. L. 114–74section 207 of Pub. L. 115–141section 6031 of this titleAmendment by effective as if included in , see , set out as a note under .

Effective Date of 2017 Amendment

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 2014 Amendment

Pub. L. 113–295section 208(h) of Pub. L. 113–295section 6651 of this titleAmendment by applicable to returns required to be filed, and statements required to be furnished, after , see , set out as a note under .

Effective Date of 2009 Amendment

Pub. L. 111–92, § 16(b)123 Stat. 2996

section 6699 of this title“The amendments made by this section [amending this section and ] shall apply to returns for taxable years beginning after .”
, , , provided that:

Effective Date of 2008 Amendment

Pub. L. 110–458, title I, § 127(b)122 Stat. 5116

“The amendment made by subsection (a) [amending this section] shall apply to returns required to be filed after .”
, , , provided that:

Effective Date of 2007 Amendment

Pub. L. 110–142, § 8(d)121 Stat. 1807

“The amendments made by subsections (a) and (b) [amending this section] shall apply to returns required to be filed after the date of the enactment of this Act [].”
, , , provided that:

Effective Date

Pub. L. 95–600, title II, § 211(c)92 Stat. 2818

“The amendments made by this section [enacting this section] shall apply with respect to returns for taxable years beginning after .”
, , , provided that:

Modification of Penalty for Failure To File Partnership Returns

Pub. L. 110–141, § 2121 Stat. 1802

“For any return of a partnership required to be filed under section 6031 of the Internal Revenue Code of 1986 for a taxable year beginning in 2008, the dollar amount in effect under section 6698(b)(1) of such Code shall be increased by $1.”
, , , provided that: