§6698 — Failure to file partnership return
8 cases·3 followed·2 distinguished·3 cited—38% support
Statute Text — 26 U.S.C. §6698
In addition to the penalty imposed by section 7203 (relating to willful failure to file return, supply information, or pay tax), if any partnership required to file a return under section 6031, or a partnership adjustment tracking report under section 6226(b)(4)(A), for any taxable year—
fails to file such return, or such report, at the time prescribed therefor (determined with regard to any extension of time for filing), or
files a return or a report which fails to show the information required under section 6031 or 6226(b)(4)(A), respectively,
such partnership shall be liable for a penalty determined under subsection (b) for each month (or fraction thereof) during which such failure continues (but not to exceed 12 months), unless it is shown that such failure is due to reasonable cause.
For purposes of subsection (a), the amount determined under this subsection for any month is the product of—
$195, multiplied by
the number of persons who were partners in the partnership during any part of the taxable year.
The penalty imposed by subsection (a) shall be assessed against the partnership.
Subchapter B of chapter 63 (relating to deficiency procedures for income, estate, gift, and certain excise taxes) shall not apply in respect of the assessment or collection of any penalty imposed by subsection (a).
In the case of any return required to be filed in a calendar year beginning after 2014, the $195 dollar amount under subsection (b)(1) 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 2013” for “calendar year 2016” in subparagraph (A)(ii) thereof.
If any amount adjusted under paragraph (1) is not a multiple of $5, such amount shall be rounded to the next lowest multiple of $5.
8 Citing Cases
In that respect, the agreements at issue in Freddie Mac are distinguishable from SEDAs.
In determining whether the taxpayer had an opportunity to dispute his liability, we note that the regulations distinguish between liabilities that are subject to deficiency procedures and those that are not. Penalties imposed under section 6698(a) are not subject to deficiency procedures.
Section 6698 provides an exception to the penalty for late filing ifit can be shown that the failure is due to reasonable cause.
The sole .issue for decision is whether respondent's determination to sustain the lien filing to collect the penalties assessed is an abuse of discretion .2 We hold it is not .
§ 6698 (imposing penalty for failure to file partnership returns); I.R.C. § 6699 (imposing penalty for failure to file S corporation return). Section 6501 does not need to, as that is not its function. The principal question section 6501 asks is “By when must the Commissioner assess the taxes the Code imposes?” Its principal question is not “What a
He also determined that petitioner is liable for penalties under section 6656 for failing to make tax deposits and under section 6698 for failing to file its partnership returns.