§6693 — Failure to provide reports on certain tax-favored accounts or annuities; penalties relating to designated nondeductible contributions
Statute Text — 26 U.S.C. §6693
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.
The provisions referred to in this paragraph are—
subsections (i) and (
l
) of section 408 (relating to individual retirement plans),
section 220(h) (relating to Archer MSAs),
section 223(h) (relating to health savings accounts),
section 529(d) (relating to qualified tuition programs),
section 529A(d) (relating to qualified ABLE programs),
section 530(h) (relating to Coverdell education savings accounts), and
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).
Any individual who—
is required to furnish information under section 408(
o
)(4) as to the amount of designated nondeductible contributions made for any taxable year, and
overstates the amount of such contributions made for such taxable year,
shall pay a penalty of $100 for each such overstatement unless it is shown that such overstatement is due to reasonable cause.
Any individual who fails to file a form required to be filed by the Secretary under section 408(o)(4) shall pay a penalty of $50 for each such failure unless it is shown that such failure is due to reasonable cause.
An employer who fails to provide 1 or more notices required by section 408(l)(2)(C) shall pay a penalty of $50 for each day on which such failures continue.
A trustee or issuer who fails—
to provide 1 or more statements required by the last sentence of section 408(i) shall pay a penalty of $50 for each day on which such failures continue, or
to provide 1 or more summary descriptions required by section 408(
l
)(2)(B) shall pay a penalty of $50 for each day on which such failures continue.
No penalty shall be imposed under this subsection with respect to any failure which the taxpayer shows was due to reasonable cause.
Subchapter B of chapter 63 (relating to deficiency procedures for income, estate, gift, and certain excise taxes) does not apply to the assessment or collection of any penalty imposed by this section.
Treasury Regulations
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Treas. Reg. §301.6693-1Penalty for failure to provide reports and documents concerning individual retirement accounts or annuities
(a) In general—(1) Annual reports, etc. The trustee of an individual retirement account described in section 408(a), or the issuer of an individual retirement annuity described in section 408(b), who fails to furnish or file a report or any other document required under section 408(i) and § 1.408-5 within the time and in the manner prescribed for furnishing or filing such item shall pay a penalty of $10 for each failure unless it is shown that such failure is due to reasonable cause.
(2) Disclosure statements. The trustee of an individual retirement account described in section 408(a), or the issuer of an individual retirement annuity described in section 408(b), who fails to furnish or file a disclosure statement, a governing instrument, an amendment to either, or any other document required under section 408(i) and § 1.408-6, within the time and in the manner prescribed for furnishing or filing such item, shall pay a penalty of $10 for each failure unless it is shown that such failure is due to reasonable cause.
(b) Showing of reasonable cause. The penalty imposed by section 6693 shall not apply to any person with respect to a failure to furnish or file a report, statement, or other document within the time and in the manner prescribed if it is established to the satisfaction of the district director that such failure was due to reasonable cause. An affirmative showing of reasonable cause must be made in the form of a written statement, containing a declaration by such person that it is made under the penalties of perjury and setting forth all the facts alleged to constitute reasonable cause.
(c) Deficiency procedures not to apply. The penalty imposed by section 6693 may be assessed and collected without regard to the deficiency procedures provided by subchapter B of chapter 63 of the Code.
(d) Other penalties. The penalties of section 6693 and this section are in lieu of any penalty imposed by section 6652(f) for violation of section 6047(d), with respect to any failure to furnish or file described in this section.
(e) Effective date. This section shall take effect on January 1, 1975.
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Treas. Reg. §301.6693-1(a)In general—(1) Annual reports, etc.
In general—(1) Annual reports, etc. The trustee of an individual retirement account described in section 408(a), or the issuer of an individual retirement annuity described in section 408(b), who fails to furnish or file a report or any other document required under section 408(i) and § 1.408-5 within the time and in the manner prescribed for furnishing or filing such item shall pay a penalty of $10 for each failure unless it is shown that such failure is due to reasonable cause.
(2) Disclosure statements. The trustee of an individual retirement account described in section 408(a), or the issuer of an individual retirement annuity described in section 408(b), who fails to furnish or file a disclosure statement, a governing instrument, an amendment to either, or any other document required under section 408(i) and § 1.408-6, within the time and in the manner prescribed for furnishing or filing such item, shall pay a penalty of $10 for each failure unless it is shown that such failure is due to reasonable cause.
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Treas. Reg. §301.6693-1(b)Showing of reasonable cause.
Showing of reasonable cause. The penalty imposed by section 6693 shall not apply to any person with respect to a failure to furnish or file a report, statement, or other document within the time and in the manner prescribed if it is established to the satisfaction of the district director that such failure was due to reasonable cause. An affirmative showing of reasonable cause must be made in the form of a written statement, containing a declaration by such person that it is made under the penalties of perjury and setting forth all the facts alleged to constitute reasonable cause.
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Treas. Reg. §301.6693-1(c)Deficiency procedures not to apply.
Deficiency procedures not to apply. The penalty imposed by section 6693 may be assessed and collected without regard to the deficiency procedures provided by subchapter B of chapter 63 of the Code.
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Treas. Reg. §301.6693-1(d)Other penalties.
Other penalties. The penalties of section 6693 and this section are in lieu of any penalty imposed by section 6652(f) for violation of section 6047(d), with respect to any failure to furnish or file described in this section.
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Treas. Reg. §301.6693-1(e)Effective date.
Effective date. This section shall take effect on January 1, 1975.
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No citing cases found in the corpus.