---
kind: "section"
citation: "26 U.S.C. § 6707A"
title: "26"
title_heading: "Internal Revenue Code"
number: "6707A"
heading: "Penalty for failure to include reportable transaction information with return"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/26/6707A"
units:
  - "Subtitle F — Procedure and Administration"
  - "Chapter 68 — Additions to the Tax, Additional Amounts, and Assessable Penalties"
  - "Subchapter B — Assessable Penalties"
  - "Part I — General Provisions"
---

# §6707A. Penalty for failure to include reportable transaction information with return

- (a) **Imposition of penalty—** Any [person](/usc/26/7701.md?p=a-1) who fails to include on any return or statement any information with respect to a reportable [transaction](/usc/26/7701.md?p=o-5-D) which is required under [section 6011](/usc/26/6011.md) to be included with such return or statement shall pay a penalty in the amount determined under [subsection (b)](#b).
- (b) **Amount of penalty—**
  - (1) **In general—** Except as otherwise provided in this subsection, the amount of the penalty under [subsection (a)](#a) with respect to any reportable [transaction](/usc/26/7701.md?p=o-5-D) shall be 75 percent of the decrease in tax shown on the return as a result of such [transaction](/usc/26/7701.md?p=o-5-D) (or which would have resulted from such [transaction](/usc/26/7701.md?p=o-5-D) if such [transaction](/usc/26/7701.md?p=o-5-D) were respected for Federal tax purposes).
  - (2) **Maximum penalty—** The amount of the penalty under [subsection (a)](#a) with respect to any reportable [transaction](/usc/26/7701.md?p=o-5-D) shall not exceed—
    - (A) in the case of a listed [transaction](/usc/26/7701.md?p=o-5-D), $200,000 ($100,000 in the case of a natural [person](/usc/26/7701.md?p=a-1)), or
    - (B) in the case of any other reportable [transaction](/usc/26/7701.md?p=o-5-D), $50,000 ($10,000 in the case of a natural [person](/usc/26/7701.md?p=a-1)).
  - (3) **Minimum penalty—** The amount of the penalty under [subsection (a)](#a) with respect to any [transaction](/usc/26/7701.md?p=o-5-D) shall not be less than $10,000 ($5,000 in the case of a natural [person](/usc/26/7701.md?p=a-1)).
- (c) **Definitions—** For purposes of this section:
  - (1) **Reportable transaction—** The term “reportable [transaction](/usc/26/7701.md?p=o-5-D)” means any [transaction](/usc/26/7701.md?p=o-5-D) with respect to which information is required to be included with a return or statement because, as determined under regulations prescribed under [section 6011](/usc/26/6011.md), such [transaction](/usc/26/7701.md?p=o-5-D) is of a type which the [Secretary](/usc/26/7701.md?p=a-11-B) determines as having a potential for tax avoidance or evasion.
  - (2) **Listed transaction—** The term “listed [transaction](/usc/26/7701.md?p=o-5-D)” means a reportable [transaction](/usc/26/7701.md?p=o-5-D) which is the same as, or substantially similar to, a [transaction](/usc/26/7701.md?p=o-5-D) specifically identified by the [Secretary](/usc/26/7701.md?p=a-11-B) as a tax avoidance [transaction](/usc/26/7701.md?p=o-5-D) for purposes of section 6011.
- (d) **Authority to rescind penalty—**
  - (1) **In general—** The [Commissioner](/usc/26/7701.md?p=a-13) of Internal Revenue may rescind all or any portion of any penalty imposed by this section with respect to any violation if—
    - (A) the violation is with respect to a reportable [transaction](/usc/26/7701.md?p=o-5-D) other than a listed [transaction](/usc/26/7701.md?p=o-5-D), and
    - (B) rescinding the penalty would promote compliance with the requirements of this title and effective tax administration.
  - (2) **No judicial appeal—** Notwithstanding any other provision of law, any determination under this subsection may not be reviewed in any judicial proceeding.
  - (3) **Records—** If a penalty is rescinded under [paragraph (1)](#d-1), the [Commissioner](/usc/26/7701.md?p=a-13) shall place in the file in the Office of the [Commissioner](/usc/26/7701.md?p=a-13) the opinion of the [Commissioner](/usc/26/7701.md?p=a-13) with respect to the determination, [including](/usc/26/7701.md?p=c)—
    - (A) a statement of the facts and circumstances relating to the violation,
    - (B) the reasons for the rescission, and
    - (C) the amount of the penalty rescinded.
- (e) **Penalty reported to SEC—** In the case of a [person](/usc/26/7701.md?p=a-1)—
  - (1) which is required to file periodic reports under section 13 or 15(d) of the Securities Exchange Act of 1934 or is required to be consolidated with another [person](/usc/26/7701.md?p=a-1) for purposes of such reports, and
  - (2) which—
    - (A) is required to pay a penalty under this section with respect to a listed [transaction](/usc/26/7701.md?p=o-5-D),
    - (B) is required to pay a penalty under [section 6662A](/usc/26/6662A.md) with respect to any reportable [transaction](/usc/26/7701.md?p=o-5-D) at a rate prescribed under [section 6662A(c)](/usc/26/6662A.md?p=c), or
    - (C) is required to pay a penalty under [section 6662(h)](/usc/26/6662.md?p=h) with respect to any reportable [transaction](/usc/26/7701.md?p=o-5-D) and would (but for [section 6662A(e)(2)(B)](/usc/26/6662A.md?p=e-2-B)) have been subject to penalty under [section 6662A](/usc/26/6662A.md) at a rate prescribed under [section 6662A(c)](/usc/26/6662A.md?p=c),

  the requirement to pay such penalty shall be disclosed in such reports filed by such [person](/usc/26/7701.md?p=a-1) for such periods as the [Secretary](/usc/26/7701.md?p=a-11-B) shall specify. Failure to make a disclosure in accordance with the preceding sentence shall be treated as a failure to which the penalty under [subsection (b)(2)](#b-2) applies.

- (f) **Coordination with other penalties—** The penalty imposed by this section shall be in addition to any other penalty imposed by this title.

## Source credit

(Added Pub. L. 108–357, title VIII, § 811(a), Oct. 22, 2004, 118 Stat. 1575; amended Pub. L. 110–172, § 11(a)(41), Dec. 29, 2007, 121 Stat. 2488; Pub. L. 111–240, title II, § 2041(a), Sept. 27, 2010, 124 Stat. 2560.)

## Notes

### Editorial Notes

### References in Text

Sections 13 and 15(d) of the Securities Exchange Act of 1934, referred to in subsec. (e)(1), are classified to sections 78m and 78o(d), respectively, of Title 15, Commerce and Trade.

### Amendments

2010—Subsec. (b). Pub. L. 111–240 amended subsec. (b) generally. Prior to amendment, subsec. (b) specified the amount of the penalty under subsec. (a), both in general and with respect to a listed transaction, in the case of a natural person or in any other case.

2007—Subsec. (e)(2)(C). Pub. L. 110–172 substituted “section 6662A(e)(2)(B)” for “section 6662A(e)(2)(C)”.

### Statutory Notes and Related Subsidiaries

### Effective Date of 2010 Amendment

Pub. L. 111–240, title II, § 2041(b), Sept. 27, 2010, 124 Stat. 2560, provided that: “The amendment made by this section [amending this section] shall apply to penalties assessed after December 31, 2006.”

### Effective Date

Pub. L. 108–357, title VIII, § 811(c), Oct. 22, 2004, 118 Stat. 1577, as amended by Pub. L. 109–135, title IV, § 403(w), Dec. 21, 2005, 119 Stat. 2629, provided that: “The amendments made by this section [enacting this section] shall apply to returns and statements the due date for which is after the date of the enactment of this Act [Oct. 22, 2004] and which were not filed before such date.”

### Report

Pub. L. 108–357, title VIII, § 811(d), Oct. 22, 2004, 118 Stat. 1577, provided that: “The Commissioner of Internal Revenue shall annually report to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate— a summary of the total number and aggregate amount of penalties imposed, and rescinded, under section 6707A of the Internal Revenue Code of 1986, and a description of each penalty rescinded under section 6707(c) of such Code and the reasons therefor.”