---
kind: "section"
citation: "26 U.S.C. § 6722"
title: "26"
title_heading: "Internal Revenue Code"
number: "6722"
heading: "Failure to furnish correct payee statements"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/26/6722"
units:
  - "Subtitle F — Procedure and Administration"
  - "Chapter 68 — Additions to the Tax, Additional Amounts, and Assessable Penalties"
  - "Subchapter B — Assessable Penalties"
  - "Part II — Failure to Comply with Certain Information Reporting Requirements"
---

# §6722. Failure to furnish correct payee statements

- (a) **Imposition of penalty—**
  - (1) **General rule—** In the case of each failure described in [paragraph (2)](#a-2) by any [person](/usc/26/7701.md?p=a-1) with respect to a [payee statement](/usc/26/6724.md?p=d-2), such [person](/usc/26/7701.md?p=a-1) shall pay a penalty of $250 for each statement with respect to which such a failure occurs, but the total amount imposed on such [person](/usc/26/7701.md?p=a-1) for all such failures during any calendar year shall not exceed $3,000,000.
  - (2) **Failures subject to penalty—** For purposes of [paragraph (1)](#a-1), the failures described in this paragraph are—
    - (A) any failure to furnish a [payee statement](/usc/26/6724.md?p=d-2) on or before the date prescribed therefor to the [person](/usc/26/7701.md?p=a-1) to whom such statement is required to be furnished, and
    - (B) any failure to include all of the information required to be shown on a [payee statement](/usc/26/6724.md?p=d-2) or the inclusion of incorrect information.
- (b) **Reduction where correction in specified period—**
  - (1) **Correction within 30 days—** If any failure described in [subsection (a)(2)](#a-2) is corrected on or before the day 30 days after the date prescribed for furnishing such statement—
    - (A) the penalty imposed by [subsection (a)](#a) shall be $50 in lieu of $250, and
    - (B) the total amount imposed on the [person](/usc/26/7701.md?p=a-1) for all such failures during any calendar year which are so corrected shall not exceed $500,000.
  - (2) **Failures corrected on or before August 1—** If any failure described in [subsection (a)(2)](#a-2) is corrected after the 30th day referred to in [paragraph (1)](#b-1) but on or before August 1 of the calendar year in which the date prescribed for furnishing such statement occurs—
    - (A) the penalty imposed by [subsection (a)](#a) shall be $100 in lieu of $250, and
    - (B) the total amount imposed on the [person](/usc/26/7701.md?p=a-1) for all such failures during the calendar year which are so corrected shall not exceed $1,500,000.
- (c) **Exception for de minimis failures—**
  - (1) **In general—** If—
    - (A) a [payee statement](/usc/26/6724.md?p=d-2) is furnished to the [person](/usc/26/7701.md?p=a-1) to whom such statement is required to be furnished,
    - (B) there is a failure described in [subsection (a)(2)(B)](#a-2-B) (determined after the application of [section 6724(a)](/usc/26/6724.md?p=a)) with respect to such statement, and
    - (C) such failure is corrected on or before August 1 of the calendar year in which the date prescribed for furnishing such statement occurs,

  for purposes of this section, such statement shall be treated as having been furnished with all of the correct required information.

  - (2) **Limitation—** The number of [payee statements](/usc/26/6724.md?p=d-2) to which [paragraph (1)](#c-1) applies for any calendar year shall not exceed the greater of—
    - (A) 10, or
    - (B) one-half of 1 percent of the total number of [payee statements](/usc/26/6724.md?p=d-2) required to be furnished by the [person](/usc/26/7701.md?p=a-1) during the calendar year.
  - (3) **Safe harbor for certain de minimis errors—**
    - (A) **In general—** If, with respect to any [payee statement](/usc/26/6724.md?p=d-2)—
      - (i) there are 1 or more failures described in [subsection (a)(2)(B)](#a-2-B) relating to an incorrect dollar amount,
      - (ii) no single amount in error differs from the correct amount by more than $100, and
      - (iii) no single amount reported for tax withheld on the [payee statement](/usc/26/6724.md?p=d-2) differs from the correct amount by more than $25,

      then no correction shall be required and, for purposes of this section, such statement shall be treated as having been furnished with all of the correct required information.

    - (B) **Exception—** [Subparagraph (A)](#c-3-A) shall not apply to any [payee statement](/usc/26/6724.md?p=d-2) if the [person](/usc/26/7701.md?p=a-1) to whom such statement is required to be furnished makes an election (at such time and in such manner as the [Secretary](/usc/26/7701.md?p=a-11-B) may prescribe) that [subparagraph (A)](#c-3-A) not apply with respect to such statement.
    - (C) **Regulatory authority—** The [Secretary](/usc/26/7701.md?p=a-11-B) may issue regulations to prevent the abuse of the safe harbor under this paragraph, [including](/usc/26/7701.md?p=c) regulations providing that this paragraph shall not apply to the extent necessary to prevent any such abuse.
- (d) **Lower limitations for persons with gross receipts of not more than $5,000,000—**
  - (1) **In general—** If any [person](/usc/26/7701.md?p=a-1) meets the gross receipts test of [paragraph (2)](#d-2) with respect to any calendar year, with respect to failures during such calendar year—
    - (A) [subsection (a)(1)](#a-1) shall be applied by substituting “$1,000,000” for “$3,000,000”,
    - (B) [subsection (b)(1)(B)](#b-1-B) shall be applied by substituting “$175,000” for “$500,000”, and
    - (C) [subsection (b)(2)(B)](#b-2-B) shall be applied by substituting “$500,000” for “$1,500,000”.
  - (2) **Gross receipts test—** A [person](/usc/26/7701.md?p=a-1) meets the gross receipts test of this paragraph if such [person](/usc/26/7701.md?p=a-1) meets the gross receipts test of [section 6721(d)(2)](/usc/26/6721.md?p=d-2).
- (e) **Penalty in case of intentional disregard—** If 1 or more failures to which [subsection (a)](#a) applies are due to intentional disregard of the requirement to furnish a [payee statement](/usc/26/6724.md?p=d-2) (or the correct information reporting requirement), then, with respect to each such failure—
  - (1) subsections [(b)](#b), [(c)](#c), and [(d)](#d) shall not apply,
  - (2) the penalty imposed under [subsection (a)(1)](#a-1) shall be $500, or, if greater—
    - (A) in the case of a [payee statement](/usc/26/6724.md?p=d-2) other than a statement required under section [6045(b)](/usc/26/6045.md?p=b), [6041A(e)](/usc/26/6041A.md?p=e) (in respect of a return required under [section 6041A(b)](/usc/26/6041A.md?p=b)), 6050H(d), 6050J(e), 6050K(b), or 6050L(c), 10 percent of the aggregate amount of the items required to be reported correctly, or
    - (B) in the case of a [payee statement](/usc/26/6724.md?p=d-2) required under section [6045(b)](/usc/26/6045.md?p=b), [6050K(b)](/usc/26/6050K.md?p=b), or [6050L(c)](/usc/26/6050L.md?p=c), [5](/usc/26/5.md) percent of the aggregate amount of the items required to be reported correctly, and
  - (3) in the case of any penalty determined under [paragraph (2)](#e-2)—
    - (A) the $3,000,000 limitation under [subsection (a)](#a) shall not apply, and
    - (B) such penalty shall not be taken into account in applying such limitation to penalties not determined under [paragraph (2)](#e-2).
- (f) **Adjustment for inflation—**
  - (1) **In general—** In the case of any failure relating to a statement required to be furnished in a calendar year beginning after 2014, each of the dollar amounts under subsections [(a)](#a), [(b)](#b), [(d)(1)](#d-1), and [(e)](#e) shall be increased by an amount equal to such dollar amount multiplied by the cost-of-living adjustment determined under [section 1(f)(3)](/usc/26/1.md?p=f-3) for the calendar year determined by substituting “calendar year 2011” for “calendar year 2016” in subparagraph (A)(ii) thereof.
  - (2) **Rounding—** If any amount adjusted under [paragraph (1)](#f-1)—
    - (A) is not less than $75,000 and is not a multiple of $500, such amount shall be rounded to the next lowest multiple of $500, and
    - (B) is not described in [subparagraph (A)](#f-2-A) and is not a multiple of $10, such amount shall be rounded to the next lowest multiple of $10.

## Source credit

(Added Pub. L. 99–514, title XV, § 1501(a), Oct. 22, 1986, 100 Stat. 2733; amended Pub. L. 101–239, title VII, § 7711(a), Dec. 19, 1989, 103 Stat. 2390; Pub. L. 111–240, title II, § 2102(g), Sept. 27, 2010, 124 Stat. 2562; Pub. L. 113–295, div. A, title II, § 207(a)(2), (3), div. B, title II, § 208(g), Dec. 19, 2014, 128 Stat. 4027, 4028, 4074; Pub. L. 114–27, title VIII, § 806(e), June 29, 2015, 129 Stat. 417; Pub. L. 114–113, div. Q, title II, § 202(b), Dec. 18, 2015, 129 Stat. 3077; Pub. L. 115–97, title I, § 11002(d)(1)(QQ), Dec. 22, 2017, 131 Stat. 2061; Pub. L. 115–141, div. U, title I, § 101(f)(1), title IV, § 401(a)(299)(G), Mar. 23, 2018, 132 Stat. 1161, 1198.)

## Notes

### Inflation Adjusted Items for Certain Years

For inflation adjustment of certain items in this section, see Revenue Procedures listed in a table under section 1 of this title.

### Editorial Notes

### Amendments

2018—Subsec. (c)(3)(A). Pub. L. 115–141, § 101(f)(1)(B), substituted “furnished” for “filed” in concluding provisions.

Subsec. (c)(3)(A)(iii). Pub. L. 115–141, § 101(f)(1)(A), substituted “the payee statement” for “any information return”.

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

2017—Subsec. (f)(1). Pub. L. 115–97 substituted “for ‘calendar year 2016’ in subparagraph (A)(ii)” for “for ‘calendar year 1992’ in subparagraph (B)”.

2015—Subsec. (a)(1). Pub. L. 114–27, § 806(e)(1), substituted “$250” for “$100” and “$3,000,000” for “$1,500,000”.

Subsec. (b)(1)(A). Pub. L. 114–27, § 806(e)(2)(A)(i), (ii), substituted “$50” for “$30” and “$250” for “$100”.

Subsec. (b)(1)(B). Pub. L. 114–27, § 806(e)(2)(A)(iii), substituted “$500,000” for “$250,000”.

Subsec. (b)(2)(A). Pub. L. 114–27, § 806(e)(2)(B)(i), (ii), substituted “$100” for “$60” and “$250” for “$100”.

Subsec. (b)(2)(B). Pub. L. 114–27, § 806(e)(2)(B)(iii), substituted “$1,500,000” for “$500,000”.

Subsec. (c)(3). Pub. L. 114–113 added par. (3).

Subsec. (d)(1)(A). Pub. L. 114–27, § 806(e)(3)(A), substituted “$1,000,000” for “$500,000” and “$3,000,000” for “$1,500,000”.

Subsec. (d)(1)(B). Pub. L. 114–27, § 806(e)(3)(B), substituted “$175,000” for “$75,000” and “$500,000” for “$250,000”.

Subsec. (d)(1)(C). Pub. L. 114–27, § 806(e)(3)(C), substituted “$500,000” for “$200,000” and “$1,500,000” for “$500,000”.

Subsec. (e)(2). Pub. L. 114–27, § 806(e)(4)(A), substituted “$500” for “$250” in introductory provisions.

Subsec. (e)(3)(A). Pub. L. 114–27, § 806(e)(4)(B), substituted “$3,000,000” for “$1,500,000”.

2014—Subsecs. (b)(1), (2), (c)(1)(C). Pub. L. 113–295, § 207(a)(2), substituted “the date prescribed for furnishing such statement” for “the required filing date”.

Subsec. (c)(2)(B). Pub. L. 113–295, § 207(a)(3), substituted “furnished” for “filed”.

Subsec. (f)(1). Pub. L. 113–295, § 208(g), substituted “In the case of any failure relating to a statement required to be furnished in a calendar year beginning after 2014” for “For each fifth calendar year beginning after 2012”.

2010—Pub. L. 111–240 amended section generally. Prior to amendment, section related to: in subsec. (a), general rule for imposition of penalty for failure to furnish correct payee statements; in subsec. (b), failures subject to penalty; and, in subsec. (c), penalty in case of intentional disregard.

1989—Pub. L. 101–239 substituted “correct” for “certain” in section catchline and amended text generally, substituting subsecs. (a) to (c) for former subsec. (a) stating general rule and subsec. (b) relating to failure to notify partnership of exchange of partnership interest.

### Statutory Notes and Related Subsidiaries

### Effective Date of 2018 Amendment

Amendment by section 101(f)(1) of Pub. L. 115–141 effective as if included in the provision of the Protecting Americans from Tax Hikes Act of 2015, div. Q of Pub. L. 114–113, to which such amendment relates, see section 101(s) of Pub. L. 115–141, set out as a note under section 24 of this title.

### Effective Date of 2017 Amendment

Amendment by Pub. L. 115–97 applicable to taxable years beginning after Dec. 31, 2017, see section 11002(e) of Pub. L. 115–97, set out as a note under section 1 of this title.

### Effective Date of 2015 Amendment

Amendment by Pub. L. 114–113 applicable to returns required to be filed, and payee statements required to be provided, after Dec. 31, 2016, see section 202(e) of Pub. L. 114–113, set out as a note under section 6045 of this title.

Amendment by Pub. L. 114–27 applicable with respect to returns and statements required to be filed after Dec. 31, 2015, see section 806(f) of Pub. L. 114–27, set out as a note under section 6721 of this title.

### Effective Date of 2014 Amendment

Pub. L. 113–295, div. A, title II, § 207(b), Dec. 19, 2014, 128 Stat. 4028, provided that: “The amendments made by this section [amending this section and provisions set out as a note under section 6721 of this title] shall take effect as if included in the provision of the Creating Small Business Jobs Act of 2010 [Pub. L. 111–240, title II] to which they relate.”

Amendment by section 208(g) of Pub. L. 113–295 applicable to returns required to be filed, and statements required to be furnished, after Dec. 31, 2014, see section 208(h) of Pub. L. 113–295, set out as a note under section 6651 of this title.

### Effective Date of 2010 Amendment

Amendment by Pub. L. 111–240 applicable with respect to information returns required to be filed, and payee statements required to be furnished, on or after Jan. 1, 2011, see section 2102(h) of Pub. L. 111–240, set out as a note under section 6721 of this title.

### Effective Date of 1989 Amendment

Amendment by Pub. L. 101–239 applicable to returns and statements the due date for which (determined without regard to extensions) is after Dec. 31, 1989, see section 7711(c) of Pub. L. 101–239, set out as a note under section 6721 of this title.

### Effective Date

Section applicable to returns the due date for which (determined without regard to extensions) is after Dec. 31, 1986, see section 1501(e) of Pub. L. 99–514, set out as a note under section 6721 of this title.