US Code

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

26 U.S.C. § 6707

Failure to furnish information regarding reportable transactions

(a)

In general

If a person who is required to file a return under section 6111(a) with respect to any reportable transaction—
(1)
fails to file such return on or before the date prescribed therefor, or
(2)
files false or incomplete information with the Secretary with respect to such transaction,
such person shall pay a penalty with respect to such return in the amount determined under subsection (b).
(b)

Amount of penalty

(1)

In general

Except as provided in paragraph (2), the penalty imposed under subsection (a) with respect to any failure shall be $50,000.

(2)

Listed transactions

The penalty imposed under subsection (a) with respect to any listed transaction shall be an amount equal to the greater of—
(A)
$200,000, or
(B)
50 percent of the gross income derived by such person with respect to aid, assistance, or advice which is provided with respect to the listed transaction before the date the return is filed under section 6111.
Subparagraph (B) shall be applied by substituting “75 percent” for “50 percent” in the case of an intentional failure or act described in subsection (a).
(c)

Rescission authority

The provisions of section 6707A(d) (relating to authority of Commissioner to rescind penalty) shall apply to any penalty imposed under this section.

(d)

Reportable and listed transactions

For purposes of this section, the terms “reportable transaction” and “listed transaction” have the respective meanings given to such terms by section 6707A(c).

Pub. L. 98–369, div. A, title I, § 141(b)98 Stat. 680Pub. L. 99–514, title XV100 Stat. 2750Pub. L. 105–34, title X, § 1028(b)111 Stat. 927Pub. L. 108–357, title VIII, § 816(a)118 Stat. 1583(Added , , ; amended , §§ 1532(a), 1533(a), , ; , (d), , , 928; , , .)

Editorial Notes

Amendments

Pub. L. 108–3572004— amended section catchline and text generally, substituting provisions relating to penalty for failure to furnish information regarding reportable transactions for provisions relating to penalty for failure to furnish information regarding tax shelters.

Pub. L. 105–34, § 1028(d)(2)1997—Subsec. (a)(1). , which directed the substitution of “paragraph (2) or (3), as the case may be” for “paragraph (2)” in subpar. (A) of par. (1), was executed by making the substitution in the concluding provisions of par. (1) to reflect the probable intent of Congress.

Pub. L. 105–34, § 1028(d)(1)Subsec. (a)(2). , substituted “Except as provided in paragraph (3), the penalty” for “The penalty”.

Pub. L. 105–34, § 1028(b)Subsec. (a)(3). , added par. (3).

Pub. L. 99–514, § 1532(a)1986—Subsec. (a)(2). , amended par. (2) generally. Prior to amendment, par. (2) read as follows: “The penalty imposed under paragraph (1) with respect to any tax shelter shall be an amount equal to the greater of—

“(A) $500, or

“(B) the lesser of (i) 1 percent of the aggregate amount invested in such tax shelter, or (ii) $10,000.

The $10,000 limitation in subparagraph (B) shall not apply where there is an intentional disregard of the requirements of section 6111(a).”

Pub. L. 99–514, § 1533(a)Subsec. (b)(2). , substituted “$250” for “$50”.

Statutory Notes and Related Subsidiaries

Effective Date of 2004 Amendment

Pub. L. 108–357, title VIII, § 816(c)118 Stat. 1584

“The amendments made by this section [amending this section] shall apply to returns the due date for which is after the date of the enactment of this Act [].”
, , , provided that:

Effective Date of 1997 Amendment

Pub. L. 105–34section 6111(d) of this titlePub. L. 105–34, § 1028section 1028(e) of Pub. L. 105–34section 6111 of this titleAmendment by applicable to any tax shelter, as defined in , interests in which are offered to potential participants after Secretary of the Treasury prescribes guidance with respect to meeting requirements added by amendments made by , see , set out as a note under .

Effective Date of 1986 Amendment

Pub. L. 99–514, title XV, § 1532(b)100 Stat. 2750

“The amendment made by this section [amending this section] shall apply to failures with respect to tax shelters interests in which are first offered for sale after the date of the enactment of this Act [].”
, , , provided that:

Pub. L. 99–514, title XV, § 1533(b)100 Stat. 2750

“The amendment made by this section [amending this section] shall apply to returns filed after the date of the enactment of this Act [Oct 22, 1986].”
, , , provided that:

Effective Date

section 6111 of this titlesection 141(d) of Pub. L. 98–369section 6111 of this titleSection applicable to tax shelters (within the meaning of ), any interest in which is first sold to any investor after , see , set out as a note under .