Title 26 — Internal Revenue Code
Part I · Chapter 68 — Additions to the Tax, Additional Amounts, and Assessable Penalties
§ 6689. Failure to file notice of redetermination of foreign tax
Statutory text
Civil penalty
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.
Foreign tax redetermination defined
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).
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
Pub. L. 96–603 § 2(c)(2) · 94 Stat. 3503
Enacted · 26 U.S.C. § 6689
(Added Pub. L. 96–603, § 2(c)(2), Dec. 28, 1980, 94 Stat. 3509.)
Source evidence
Code source credit
(Added Pub. L. 96–603, § 2(c)(2), Dec. 28, 1980, 94 Stat. 3509.)Enacted provision · exact public law section
(2) Civil penalty for failure to notify.— Subchapter B of chapter 68 of such Code (relating to assessable penalties) is amended by inserting after section 6688 the following new section: “SEC. 6689. FAILURE TO FILE NOTICE OF REDETERMINATION OF FOREIGN TAX. “(a) Civil Penalty.— 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— “(1) 5 percent of the deficiency if the failure is for not more than 1 month, with “(2) an additional 5 percent of the deficiency for each month (or fraction thereof) during which the failure continues. “(b) Foreign Tax Redetermination Defined.— For purposes of this section, the term ‘foreign tax 26 USC 905, Ante, p. 3505. redetermination’ means any redetermination for which a notice is required under subsection (c) of section 905 or paragraph (2) of section 404A(g).”
1 of 1 references resolved to an enrolled provision
Editorial Notes
Prior Provisions
A prior section 6689, added Pub. L. 93–17, § 3(d)(2), , 87 Stat. 16, related to failure by certain foreign issuers and obligors to comply with United States investment equalization tax requirements, prior to repeal by Pub. L. 94–455, title XIX, § 1904(b)(10)(E)(i), , 90 Stat. 1817.
Statutory Notes and Related Subsidiaries
Effective Date
For applicability of section with respect to employer contributions or accruals for taxable years beginning after , election to apply amendments retroactively with respect to foreign subsidiaries, allowance of prior deductions in case of certain funded branch plans, and time and manner for making elections, see section 2(e) of Pub. L. 96–603, set out as a note under section 404A of this title.
Credits
(Added Pub. L. 96–603, § 2(c)(2), , 94 Stat. 3509.)