(a) Reports(1) In generalIf 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.
(2) ProvisionsThe provisions referred to in this paragraph are—(A) subsections (i) and (l) of section 408 (relating to individual retirement plans),
(B) section 220(h) (relating to Archer MSAs),
(C) section 223(h) (relating to health savings accounts),
(D) section 529(d) (relating to qualified tuition programs),
(E) section 529A(d) (relating to qualified ABLE programs), and
(F) section 530(h) (relating to Coverdell education savings accounts).
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)(X).
(b) Penalties relating to nondeductible contributions(1) Overstatement of designated nondeductible contributionsAny individual who—(A) is required to furnish information under section 408(o)(4) as to the amount of designated nondeductible contributions made for any taxable year, and
(B) 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.
(2) Failure to file formAny individual who fails to file a form required to be filed by the Secretary under section 408(o)(4) shall pay a penalty of $50 for each such failure unless it is shown that such failure is due to reasonable cause.
(c) Penalties relating to simple retirement accounts(1) Employer penaltiesAn employer who fails to provide 1 or more notices required by section 408(l)(2)(C) shall pay a penalty of $50 for each day on which such failures continue.
(2) Trustee and issuer penaltiesA trustee or issuer who fails—(A) to provide 1 or more statements required by the last sentence of section 408(i) shall pay a penalty of $50 for each day on which such failures continue, or
(B) to provide 1 or more summary descriptions required by section 408(l)(2)(B) shall pay a penalty of $50 for each day on which such failures continue.
(3) Reasonable cause exceptionNo penalty shall be imposed under this subsection with respect to any failure which the taxpayer shows was due to reasonable cause.
(d) Deficiency procedures not to applySubchapter 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.
Structure US Code
Title 26— INTERNAL REVENUE CODE
Subtitle F— Procedure and Administration
CHAPTER 68— ADDITIONS TO THE TAX, ADDITIONAL AMOUNTS, AND ASSESSABLE PENALTIES
Subchapter B— Assessable Penalties
§ 6671. Rules for application of assessable penalties
§ 6672. Failure to collect and pay over tax, or attempt to evade or defeat tax
§ 6673. Sanctions and costs awarded by courts
§ 6674. Fraudulent statement or failure to furnish statement to employee
§ 6675. Excessive claims with respect to the use of certain fuels
§ 6676. Erroneous claim for refund or credit
§ 6677. Failure to file information with respect to certain foreign trusts
§ 6679. Failure to file returns, etc., with respect to foreign corporations or foreign partnerships
§ 6682. False information with respect to withholding
§ 6684. Assessable penalties with respect to liability for tax under chapter 42
§ 6686. Failure to file returns or supply information by DISC or former FSC
§ 6688. Assessable penalties with respect to information required to be furnished under section 7654
§ 6689. Failure to file notice of redetermination of foreign tax
§ 6690. Fraudulent statement or failure to furnish statement to plan participant
§ 6692. Failure to file actuarial report
§ 6694. Understatement of taxpayer’s liability by tax return preparer
§ 6695. Other assessable penalties with respect to the preparation of tax returns for other persons
§ 6695A. Substantial and gross valuation misstatements attributable to incorrect appraisals
§ 6696. Rules applicable with respect to sections 6694, 6695, and 6695A
§ 6698. Failure to file partnership return
§ 6699. Failure to file S corporation return
§ 6700. Promoting abusive tax shelters, etc.
§ 6701. Penalties for aiding and abetting understatement of tax liability
§ 6702. Frivolous tax submissions
§ 6703. Rules applicable to penalties under sections 6700, 6701, and 6702
§ 6704. Failure to keep records necessary to meet reporting requirements under section 6047(d)
§ 6705. Failure by broker to provide notice to payors
§ 6706. Original issue discount information requirements
§ 6707. Failure to furnish information regarding reportable transactions
§ 6707A. Penalty for failure to include reportable transaction information with return
§ 6708. Failure to maintain lists of advisees with respect to reportable transactions
§ 6709. Penalties with respect to mortgage credit certificates
§ 6710. Failure to disclose that contributions are nondeductible
§ 6712. Failure to disclose treaty-based return positions
§ 6713. Disclosure or use of information by preparers of returns
§ 6714. Failure to meet disclosure requirements applicable to quid pro quo contributions
§ 6715. Dyed fuel sold for use or used in taxable use, etc.
§ 6718. Failure to display tax registration on vessels
§ 6719. Failure to register or reregister
§ 6720. Fraudulent acknowledgments with respect to donations of motor vehicles, boats, and airplanes
§ 6720A. Penalty with respect to certain adulterated fuels