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§6708 — Failure to maintain lists of advisees with respect to reportable transactions

1 cases·1 cited

Statute Text — 26 U.S.C. §6708

(a)Imposition of penalty
(1)In general

If any person who is required to maintain a list under section 6112(a) fails to make such list available upon written request to the Secretary in accordance with section 6112(b) within 20 business days after the date of such request, such person shall pay a penalty of $10,000 for each day of such failure after such 20th day.

(2)Reasonable cause exception

No penalty shall be imposed by paragraph (1) with respect to the failure on any day if such failure is due to reasonable cause.

(b)Penalty in addition to other penalties

The penalty imposed by this section shall be in addition to any other penalty provided by law.

Treasury Regulations

  • Treas. Reg. §Treas. Reg. §301.6708-1 Failure to maintain lists of advisees with respect to reportable transactions
  • Treas. Reg. §Treas. Reg. §301.6708-1(a) In general.
  • Treas. Reg. §Treas. Reg. §301.6708-1(b) Calculation of the 20-business-day period.
  • Treas. Reg. §Treas. Reg. §301.6708-1(c) Making a list available.
  • Treas. Reg. §Treas. Reg. §301.6708-1(d) Failure to make list available.
  • Treas. Reg. §Treas. Reg. §301.6708-1(e) Computation of penalty—(1) In general.
  • Treas. Reg. §Treas. Reg. §301.6708-1(f) Definitions.
  • Treas. Reg. §Treas. Reg. §301.6708-1(g) Reasonable cause—general applicability—(1) Overview.
  • Treas. Reg. §Treas. Reg. §301.6708-1(h) Reasonable cause—special considerations—(1) Material advisor no longer in existence.
  • Treas. Reg. §Treas. Reg. §301.6708-1(i) Effective/applicability date.
  • Treas. Reg. §Treas. Reg. §301.6708-1(v) The person's efforts to ensure that the list furnished to the IRS is accurate and complete.
  • Treas. Reg. §Treas. Reg. §301.6708-1T Failure to maintain list of investors in potentially abusive tax shelters

1 Citing Cases

Vista Hill Investments, LLC, Bobby A. Branch, Tax Matters Partner, Petitioner 159 T.C. No. 5 · 2022

Again, it is the IRS’s act of identifying a transaction as a listed transaction (as it did in Notice 2017-10) that makes section 6707 and 6708 penalties applicable. In sum, by its issuance, Notice 2017-10 creates new substantive reporting obligations for taxpayers and material advisors, including petitioner and the LLCs, the violatio