26 U.S.C. § 6721
Failure to file correct information returns
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.
Subparagraph (A) shall not apply with respect to any incorrect dollar amount to the extent that such error relates to an amount with respect to which an election is made under section 6722(c)(3)(B).
The Secretary may issue regulations to prevent the abuse of the safe harbor under this paragraph, including regulations providing that this paragraph shall not apply to the extent necessary to prevent any such abuse.
A person meets the gross receipts test of this paragraph for any calendar year if the average annual gross receipts of such person for the most recent 3 taxable years ending before such calendar year do not exceed $5,000,000.
For purposes of subparagraph (A), the rules of paragraphs (2) and (3) of section 448(c) shall apply.
In the case of any failure relating to a return required to be filed in a calendar year beginning after 2014, each of the dollar amounts under subsections (a), (b), (d) (other than paragraph (2)(A) thereof), and (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) for the calendar year determined by substituting “calendar year 2011” for “calendar year 2016” in subparagraph (A)(ii) thereof.
For inflation adjustment of certain items in this section, see Revenue Procedures listed in a table under section 1 of this title.
2018—Subsec. (c)(3)(A)(iii). Pub. L. 115–141, § 101(f)(2), substituted “the information return” for “any information return”.
Subsec. (f)(1). Pub. L. 115–141, § 401(a)(299)(F), 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(a), substituted “$250” for “$100” and “$3,000,000” for “$1,500,000”.
Subsec. (b)(1)(A). Pub. L. 114–27, § 806(b)(1)(A), (B), substituted “$50” for “$30” and “$250” for “$100”.
Subsec. (b)(1)(B). Pub. L. 114–27, § 806(b)(1)(C), substituted “$500,000” for “$250,000”.
Subsec. (b)(2)(A). Pub. L. 114–27, § 806(b)(2)(A), (B), substituted “$100” for “$60” and “$250” for “$100”.
Subsec. (b)(2)(B). Pub. L. 114–27, § 806(b)(2)(C), substituted “$1,500,000” for “$500,000”.
Subsec. (c). Pub. L. 114–113, § 202(d)(1), substituted “Exceptions for certain de minimis failures” for “Exception for de minimis failures to include all required information” in heading.
Subsec. (c)(1). Pub. L. 114–113, § 202(d)(2), substituted “Exception for de minimis failure to include all required information” for “In general” in heading.
Subsec. (c)(3). Pub. L. 114–113, § 202(a), added par. (3).
Subsec. (d)(1)(A). Pub. L. 114–27, § 806(c)(1), substituted “$1,000,000” for “$500,000” and “$3,000,000” for “$1,500,000”.
Subsec. (d)(1)(B). Pub. L. 114–27, § 806(c)(2), substituted “$175,000” for “$75,000” and “$500,000” for “$250,000”.
Subsec. (d)(1)(C). Pub. L. 114–27, § 806(c)(3), substituted “$500,000” for “$200,000” and “$1,500,000” for “$500,000”.
Subsec. (e)(2). Pub. L. 114–27, § 806(d)(1), substituted “$500” for “$250”.
Subsec. (e)(3)(A). Pub. L. 114–27, § 806(d)(2), substituted “$3,000,000” for “$1,500,000”.
2014—Subsec. (f)(1). Pub. L. 113–295 substituted “In the case of any failure relating to a return required to be filed in a calendar year beginning after 2014” for “For each fifth calendar year beginning after 2012”.
2010—Subsec. (a)(1). Pub. L. 111–240, § 2102(a), substituted “$100” for “$50” and “$1,500,000” for “$250,000”.
Subsec. (b)(1)(A). Pub. L. 111–240, § 2102(a)(1), (b)(1), substituted “$30” for “$15” and “$100” for “$50”.
Subsec. (b)(1)(B). Pub. L. 111–240, § 2102(b)(2), substituted “$250,000” for “$75,000”.
Subsec. (b)(2)(A). Pub. L. 111–240, § 2102(a)(1), (c)(1), substituted “$60” for “$30” and “$100” for “$50”.
Subsec. (b)(2)(B). Pub. L. 111–240, § 2102(c)(2), substituted “$500,000” for “$150,000”.
Subsec. (d)(1). Pub. L. 111–240, § 2102(d)(2), substituted “such calendar year” for “such taxable year” in introductory provisions.
Subsec. (d)(1)(A). Pub. L. 111–240, § 2102(a)(2), (d)(1)(A), substituted “$500,000” for “$100,000” and “$1,500,000” for “$250,000”.
Subsec. (d)(1)(B). Pub. L. 111–240, § 2102(b)(2), (d)(1)(B), substituted “$75,000” for “$25,000” and “$250,000” for “$75,000”.
Subsec. (d)(1)(C). Pub. L. 111–240, § 2102(c)(2), (d)(1)(C), substituted “$200,000” for “$50,000” and “$500,000” for “$150,000”.
Subsec. (e)(2). Pub. L. 111–240, § 2102(e), substituted “$250” for “$100” in introductory provisions.
Subsec. (e)(3)(A). Pub. L. 111–240, § 2102(a)(2), substituted “$1,500,000” for “$250,000”.
Subsec. (f). Pub. L. 111–240, § 2102(f), added subsec. (f).
2006—Subsec. (e)(2)(D). Pub. L. 109–280, which directed the addition of subpar. (D) to section 6721(e)(2), without specifying the act to be amended, was executed by making the addition to subsec. (e)(2) of this section, which is section 6721 of the Internal Revenue Code of 1986, to reflect the probable intent of Congress.
1990—Subsec. (e)(2). Pub. L. 101–508 inserted “6050I,” after “6050H,” and struck out “or” at end of subpar. (A), substituted “or” for “and” at end of subpar. (B), and added subpar. (C).
1989—Pub. L. 101–239 substituted “correct” for “certain” in section catchline and amended text generally, substituting subsecs. (a) to (e) for former subsec. (a) stating general rule and subsec. (b) relating to penalty in case of intentional disregard.
1988—Subsec. (b)(1)(A). Pub. L. 100–690 inserted “(or, if greater, in the case of a return filed under section 6050I, 10 percent of the taxable income derived from the transaction)” after “reported”.
Amendment by section 101(f)(2) 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.
Amendment by Pub. L. 115–97 applicable to taxable years beginning after
Amendment by Pub. L. 114–113 applicable to returns required to be filed, and payee statements required to be provided, after
Pub. L. 114–27, title VIII, § 806(f),
Amendment by Pub. L. 113–295 applicable to returns required to be filed, and statements required to be furnished, after
Pub. L. 111–240, title II, § 2102(h),
Amendment by Pub. L. 109–280 applicable to acquisitions of contracts after
Amendment by Pub. L. 101–508 applicable to amounts received after
Pub. L. 101–239, title VII, § 7711(c),
Amendment by Pub. L. 100–690 applicable to actions after
Pub. L. 99–514, title XV, § 1501(e),