§6724. Waiver; definitions and special rules — Inbound Citations
26 U.S.C. § 6724
Cited by 53 provisions in release 119-102.
Citations to §6724(a)
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(B) there is a failure described in subsection (a)(2)(B) (determined after the application of section 6724(a)) with respect to such return, and
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(B) there is a failure described in subsection (a)(2)(B) (determined after the application of section 6724(a)) with respect to such statement, and
Citations to §6724(d)(1)
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(B) The Secretary may relieve any organization required under paragraph (1) (other than an organization described in section 509(a)(3)) to file an information return from filing such a return where he determines that such filing is not necessary to the efficient administration of the internal revenue laws.
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(4) The Secretary may relieve any organization required under paragraph (2) to file an information return from filing such a return if the Secretary determines that such filing is not necessary to the efficient administration of the internal revenue laws.
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(5) For receipts, constituting information returns, required to be furnished to employees, see section 6051.
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(1) The term “return” means any tax or information return, declaration of estimated tax, or claim for refund required by, or provided for or permitted under, the provisions of this title which is filed with the Secretary by, on behalf of, or with respect to any person, and any amendment or supplement thereto, including supporting schedules, attachments, or lists which are supplemental to, or part of, the return so filed.
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(5) Upon written request by the Commissioner of Social Security, the Secretary may disclose information returns filed pursuant to part III of subchapter A of chapter 61 of this subtitle for the purpose of—(A) carrying out, in accordance with an agreement entered into pursuant to section 232 of the Social Security Act, an effective return processing program; or(B) providing information regarding the mortality status of individuals for epidemiological and similar research in accordance with section 1106(d) of the Social Security Act.
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(d) In any court proceeding, if a taxpayer asserts a reasonable dispute with respect to any item of income reported on an information return filed with the Secretary under subpart B or C of part III of subchapter A of chapter 61 by a third party and the taxpayer has fully cooperated with the Secretary (including providing, within a reasonable period of time, access to and inspection of all witnesses, information, and documents within the control of the taxpayer as reasonably requested by the Secretary), the Secretary shall have the burden of producing reasonable and probative information concerning such deficiency in addition to such information return.
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(1) As a condition of, and prior to, any transfer of any portion of an eligible credit pursuant to subsection (a), the Secretary may require such information (including, in such form or manner as is determined appropriate by the Secretary, such information returns) or registration as the Secretary deems necessary for purposes of preventing duplication, fraud, improper payments, or excessive payments under this section.
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(e) In the case of failure to file a return or statement required under section 6058 (relating to information required in connection with certain plans of deferred compensation), 6047 (relating to information relating to certain trusts and annuity and bond purchase plans), or 6039D (relating to returns and records with respect to certain fringe benefit plans) on the date and in the manner prescribed therefor (determined with regard to any extension of time for filing), unless it is shown that such failure is due to reasonable cause, there shall be paid (on notice and demand by the Secretary and in the same manner as tax) by the person failing so to file, $250 for each day during which such failure continues, but the total amount imposed under this subsection on any person for failure to file any return shall not exceed $150,000. This subsection shall not apply to any return or statement which is an information return described in section 6724(d)(1)(C)(ii) or a payee statement described in section 6724(d)(2)(AA).
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(m) For penalties for failure to file certain information returns with respect to alcohol and tobacco taxes, see, generally, subtitle E.
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(1) If 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) The 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),(F) section 530(h) (relating to Coverdell education savings accounts), and(G) section 530A(i) (relating to Trump 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).
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(1) In the case of a failure described in paragraph (2) by any person with respect to an information return, such person shall pay a penalty of $250 for each return with respect to which such a failure occurs, but the total amount imposed on such person for all such failures during any calendar year shall not exceed $3,000,000.
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(A) any failure to file an information return with the Secretary on or before the required filing date, and
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(A) an information return is filed with the Secretary,
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(2) The number of information returns to which paragraph (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 information returns required to be filed by the person during the calendar year.
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(B) one-half of 1 percent of the total number of information returns required to be filed by the person during the calendar year.
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(A) If, with respect to an information return filed with the Secretary—(i) there are 1 or more failures described in subsection (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 information return differs from the correct amount by more than $25,then no correction shall be required and, for purposes of this section, such return shall be treated as having been filed with all of the correct required information.
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(iii) no single amount reported for tax withheld on the information return differs from the correct amount by more than $25,
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(a) If any person willfully files a fraudulent information return with respect to payments purported to be made to any other person, such other person may bring a civil action for damages against the person so filing such return.
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(1) any actual damages sustained by the plaintiff as a proximate result of the filing of the fraudulent information return (including any costs attributable to resolving deficiencies asserted as a result of such filing),
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(1) 6 years after the date of the filing of the fraudulent information return, or
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(2) 1 year after the date such fraudulent information return would have been discovered by exercise of reasonable care.
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(e) The decision of the court awarding damages in an action brought under subsection (a) shall include a finding of the correct amount which should have been reported in the information return.
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(f) For purposes of this section, the term “information return” means any statement described in section 6724(d)(1)(A).
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(2) any notice generated out of any information return matching program, and
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(2) For purposes of this section, in making a determination as to whether there has been or may have been an unauthorized use of the identity of an individual to obtain employment, the Secretary shall review any information—(A) obtained from a statement described in section 6051 or an information return relating to compensation for services rendered other than as an employee, or(B) provided to the Internal Revenue Service by the Social Security Administration regarding any statement described in section 6051,which indicates that the social security account number provided on such statement or information return does not correspond with the name provided on such statement or information return or the name on the tax return reporting the income which is included on such statement or information return.
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(A) obtained from a statement described in section 6051 or an information return relating to compensation for services rendered other than as an employee, or
Citations to §6724(d)(1)(A)
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(f) For purposes of this section, the term “information return” means any statement described in section 6724(d)(1)(A).
Citations to §6724(d)(1)(C)(i)
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(1) If 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) The 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),(F) section 530(h) (relating to Coverdell education savings accounts), and(G) section 530A(i) (relating to Trump 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).
Citations to §6724(d)(1)(C)(ii)
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(e) In the case of failure to file a return or statement required under section 6058 (relating to information required in connection with certain plans of deferred compensation), 6047 (relating to information relating to certain trusts and annuity and bond purchase plans), or 6039D (relating to returns and records with respect to certain fringe benefit plans) on the date and in the manner prescribed therefor (determined with regard to any extension of time for filing), unless it is shown that such failure is due to reasonable cause, there shall be paid (on notice and demand by the Secretary and in the same manner as tax) by the person failing so to file, $250 for each day during which such failure continues, but the total amount imposed under this subsection on any person for failure to file any return shall not exceed $150,000. This subsection shall not apply to any return or statement which is an information return described in section 6724(d)(1)(C)(ii) or a payee statement described in section 6724(d)(2)(AA).
Citations to §6724(d)(2)
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(C) The term “payee statement” has the meaning given to such term by section 6724(d)(2).
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(e) In the case of failure to file a return or statement required under section 6058 (relating to information required in connection with certain plans of deferred compensation), 6047 (relating to information relating to certain trusts and annuity and bond purchase plans), or 6039D (relating to returns and records with respect to certain fringe benefit plans) on the date and in the manner prescribed therefor (determined with regard to any extension of time for filing), unless it is shown that such failure is due to reasonable cause, there shall be paid (on notice and demand by the Secretary and in the same manner as tax) by the person failing so to file, $250 for each day during which such failure continues, but the total amount imposed under this subsection on any person for failure to file any return shall not exceed $150,000. This subsection shall not apply to any return or statement which is an information return described in section 6724(d)(1)(C)(ii) or a payee statement described in section 6724(d)(2)(AA).
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(1) If 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) The 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),(F) section 530(h) (relating to Coverdell education savings accounts), and(G) section 530A(i) (relating to Trump 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).
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(1) In the case of each failure described in paragraph (2) by any person with respect to a payee statement, such person 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 for all such failures during any calendar year shall not exceed $3,000,000.
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(A) any failure to furnish a payee statement on or before the date prescribed therefor to the person to whom such statement is required to be furnished, and
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(B) any failure to include all of the information required to be shown on a payee statement or the inclusion of incorrect information.
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(A) a payee statement is furnished to the person to whom such statement is required to be furnished,
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(2) The number of payee statements to which paragraph (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 required to be furnished by the person during the calendar year.
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(B) one-half of 1 percent of the total number of payee statements required to be furnished by the person during the calendar year.
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(A) If, with respect to any payee statement—(i) there are 1 or more failures described in subsection (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 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.
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(iii) no single amount reported for tax withheld on the payee statement differs from the correct amount by more than $25,
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(B) Subparagraph (A) shall not apply to any payee statement if the person to whom such statement is required to be furnished makes an election (at such time and in such manner as the Secretary may prescribe) that subparagraph (A) not apply with respect to such statement.
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(e) If 1 or more failures to which subsection (a) applies are due to intentional disregard of the requirement to furnish a payee statement (or the correct information reporting requirement), then, with respect to each such failure—(2) the penalty imposed under subsection (a)(1) shall be $500, or, if greater—(A) in the case of a payee statement other than a statement required under section 6045(b), 6041A(e) (in respect of a return required under section 6041A(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 required under section 6045(b), 6050K(b), or 6050L(c), 5 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)—(A) the $3,000,000 limitation under subsection (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).
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(A) in the case of a payee statement other than a statement required under section 6045(b), 6041A(e) (in respect of a return required under section 6041A(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
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(B) in the case of a payee statement required under section 6045(b), 6050K(b), or 6050L(c), 5 percent of the aggregate amount of the items required to be reported correctly, and
Citations to §6724(d)(2)(AA)
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(e) In the case of failure to file a return or statement required under section 6058 (relating to information required in connection with certain plans of deferred compensation), 6047 (relating to information relating to certain trusts and annuity and bond purchase plans), or 6039D (relating to returns and records with respect to certain fringe benefit plans) on the date and in the manner prescribed therefor (determined with regard to any extension of time for filing), unless it is shown that such failure is due to reasonable cause, there shall be paid (on notice and demand by the Secretary and in the same manner as tax) by the person failing so to file, $250 for each day during which such failure continues, but the total amount imposed under this subsection on any person for failure to file any return shall not exceed $150,000. This subsection shall not apply to any return or statement which is an information return described in section 6724(d)(1)(C)(ii) or a payee statement described in section 6724(d)(2)(AA).
Citations to §6724(d)(2)(X)
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(1) If 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) The 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),(F) section 530(h) (relating to Coverdell education savings accounts), and(G) section 530A(i) (relating to Trump 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).
Citations to §6724(d)(3)
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In the case of a failure by any person to comply with a specified information reporting requirement on or before the time prescribed therefor, such person shall pay a penalty of $50 for each such failure, but the total amount imposed on such person for all such failures during any calendar year shall not exceed $100,000.
Citations to §6724(d)(4)
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(A) any failure to file an information return with the Secretary on or before the required filing date, and
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(1) If any failure described in subsection (a)(2) is corrected on or before the day 30 days after the required filing date—(A) the penalty imposed by subsection (a) shall be $50 in lieu of $250, and(B) the total amount imposed on the person for all such failures during any calendar year which are so corrected shall not exceed $500,000.
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(2) If any failure described in subsection (a)(2) is corrected after the 30th day referred to in paragraph (1) but on or before August 1 of the calendar year in which the required filing date occurs—(A) the penalty imposed by subsection (a) shall be $100 in lieu of $250, and(B) the total amount imposed on the person for all such failures during the calendar year which are so corrected shall not exceed $1,500,000.
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(C) such failure is corrected on or before August 1 of the calendar year in which the required filing date occurs,