§6689 — Failure to file notice of redetermination of foreign tax
4 cases·3 followed·1 cited—75% support
Statute Text — 26 U.S.C. §6689
If the taxpayer fails to notify the Secretary (on or before the date prescribed by regulations for giving such notice) of a foreign tax redetermination, unless it is shown that such failure is due to reasonable cause and not due to willful neglect, there shall be added to the deficiency attributable to such redetermination an amount (not in excess of 25 percent of the deficiency) determined as follows—
5 percent of the deficiency if the failure is for not more than 1 month, with
an additional 5 percent of the deficiency for each month (or fraction thereof) during which the failure continues.
For purposes of this section, the term “foreign tax redetermination” means any redetermination for which a notice is required under subsection (c) of section 905 or paragraph (2) of section 404A(g).
Treasury Regulations
- Treas. Reg. §Treas. Reg. §301.6689-1 Failure to file notice of redetermination of foreign income taxes
- Treas. Reg. §Treas. Reg. §301.6689-1(a) Application of civil penalty.
- Treas. Reg. §Treas. Reg. §301.6689-1(b) Amount of the penalty.
- Treas. Reg. §Treas. Reg. §301.6689-1(c) Foreign tax redetermination defined.
- Treas. Reg. §Treas. Reg. §301.6689-1(d) Reasonable cause.
- Treas. Reg. §Treas. Reg. §301.6689-1(e) Applicability date.
4 Citing Cases
Section 6689 provides a strong incentive for taxpayers to comply with their self-reporting obligations under section 905(c)(1), imposing a penalty up to 25% ofthe deficiency for failure to provide the notice required by section 905(c)(1) unless it is shownthat such failure is due to reasonable cause and not due to willf
Section 6689 provides a strong incentive for taxpayers to comply with their self-reporting obligations under section 905(c)(1), imposing an assessable penalty up to 25% ofthe deficiency for failure to provide the notice required by section 905(c)(1) unless it is shown that such failure is due to reasonable cause and not due to willful neglect. With
■ Section 6689 provides a strong incentive for taxpayers to comply with their self-reporting obligations under section 905(c)(1), imposing a penalty up to 25% of the deficiency for failure to provide the notice required by section 905(c)(1) unless it is shown that such failure is due to reasonable cause and not due to willful neglect. With exceptions
d to the Court in the trials conducted by Judge Tannenwald could be reassigned to another Judge without the need for a retrial or the presentation of additional evidence. - 3 - AIC Holding Co. and Subsidiaries Taxable year Penalty ending Deficiency sec. 6689 Dec. 31, 1976 $659,483 --- Dec. 31, 1977 1,798,443 --- Dec. 31, 1978 1,420,787 --- Dec. 31, 1979 3,160,729 --- Dec. 31, 1980 12,418,363 $23,145 Dec. 31, 1981 10,660,213 5,227 Dec. 31, 1982 3,885,657 --- Dec. 31, 1983 4,024,241 --- The issues