§ 6707. Failure to furnish information regarding reportable transactions

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.

1. 1984

   Tax Reform Act of 1984

   Pub. L. 98–369 div. A title I § 141(b) · 98 Stat. 494

   Enacted · 26 U.S.C. § 6707

   Added Pub. L. 98–369, div. A, title I, § 141(b), July 18, 1984, 98 Stat. 680

   Source evidence

   Code source credit
   Added Pub. L. 98–369, div. A, title I, § 141(b), July 18, 1984, 98 Stat. 680

   Enacted provision · exact public law section
   (b) Penalties.— Subchapter B of chapter 68 (relating to assessable penalties) is amended by adding at the end thereof the following new section: “SEC. 6707. FAILURE TO FURNISH INFORMATION REGARDING TAX SHELTERS. “(a) Failure To Register Tax Shelter.— “(1) Imposition of penalty.— If a person who is required to Ante, p. 677. register a tax shelter under section 6111(a)— “(A) fails to register such tax shelter on or before the date described in section 611 l(a)(1), or “(B) files false or incomplete information with the Secretary with respect to such registration, such person shall pay a penalty with respect to such registration in the amount determined under paragraph (2). No penalty shall be imposed under the preceding sentence with respect to any failure which is due to reasonable cause. (2) Amount of penalty.— The penalty imposed under paragraph (1) with respect to any tax shelter shall be an amount equal to the greater of— “(A) $500, or “(B) the lesser of (i) 1 percent of the aggregate amount invested in such tax shelter, or (ii) $10,000. The $10,000 limitation in subparagraph (B) shall not apply where there is an intentional disregard of the requirements of section 6111(a). “(b) Failure To Furnish Tax Shelter Identification Number.— “(1) Sellers, etc.— Any person who fails to furnish the identification number of a tax shelter which such person is required to furnish under section 6111(b)(1) shall pay a penalty of $100 for each such failure. “(2) Failure to include number on return.— Any person who fails to include an identification number on a return on which such number is required to be included under section 6111(b)(2) shall pay a penalty of $50 for each such failure, unless such failure is due to reasonable cause.”

2. 1986

   Tax Reform Act of 1986

   Pub. L. 99–514 § 1532(a) · 100 Stat. 2085

   Amended · 26 U.S.C. § 6707(a)(2)

   Pub. L. 99–514, § 1532(a), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “The penalty imposed under paragraph (1) with respect to any tax shelter shall be an amount equal to the greater of—

   Source evidence

   Code amendment note
   Subsec. (a)(2). Pub. L. 99–514, § 1532(a), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “The penalty imposed under paragraph (1) with respect to any tax shelter shall be an amount equal to the greater of—

   “(A) $500, or “(B) the lesser of (i) 1 percent of the aggregate amount invested in such tax shelter, or (ii) $10,000. The $10,000 limitation in subparagraph (B) shall not apply where there is an intentional disregard of the requirements of section 6111(a).”

   Enacted provision · exact public law section
   (a) In General.— Paragraph (2) of section 6707(a) (relating to penalty for failure to register tax shelters) is amended to read as follows: “(2) Amount of penalty.— The penalty imposed under paragraph (1) with respect to any tax shelter shall be an amount equal to the greater of— “(A) 1 percent of the aggregate amount invested in such tax shelter, or “(B) $500.”

3. 1986

   Tax Reform Act of 1986

   Pub. L. 99–514 § 1533(a) · 100 Stat. 2085

   Substituted · 26 U.S.C. § 6707(b)(2)

   Pub. L. 99–514, § 1533(a), substituted “$250” for “$50”

   Source evidence

   Code amendment note
   Subsec. (b)(2). Pub. L. 99–514, § 1533(a), substituted “$250” for “$50”.

   Enacted provision · exact public law section
   (a) In General.— Paragraph (2) of section 6707(b) (relating to penalty for failure to furnish tax shelter identification number) is amended by striking out “$50” and inserting in lieu thereof “$250”.

4. 1997

   Pub. L. 105–34 § 1028(d)(2) · 111 Stat. 788

   Substituted · 26 U.S.C. § 6707(a)(1)

   Pub. L. 105–34, § 1028(d)(2), which directed the substitution of “paragraph (2) or (3), as the case may be” for “paragraph (2)” in subpar. (A) of par. (1), was executed by making the substitution in the concluding provisions of par. (1) to reflect the probable intent of Congress

   Source evidence

   Code amendment note
   Subsec. (a)(1). Pub. L. 105–34, § 1028(d)(2), which directed the substitution of “paragraph (2) or (3), as the case may be” for “paragraph (2)” in subpar. (A) of par. (1), was executed by making the substitution in the concluding provisions of par. (1) to reflect the probable intent of Congress.

   Enacted provision · exact public law section
   (2) Subparagraph (A) of section 6707(a)(1) is amended by striking “paragraph (2)” and inserting “paragraph (2) or (3), as the case may be”.

5. 1997

   Pub. L. 105–34 § 1028(d)(1) · 111 Stat. 788

   Substituted · 26 U.S.C. § 6707(a)(2)

   Pub. L. 105–34, § 1028(d)(1), substituted “Except as provided in paragraph (3), the penalty” for “The penalty”

   Source evidence

   Code amendment note
   Subsec. (a)(2). Pub. L. 105–34, § 1028(d)(1), substituted “Except as provided in paragraph (3), the penalty” for “The penalty”.

   Enacted provision · exact public law section
   (1) Paragraph (2) of section 6707(a) is amended by striking “The penalty” and inserting “Except as provided in paragraph (3), the penalty”.

6. 1997

   Pub. L. 105–34 § 1028(b) · 111 Stat. 788

   Added · 26 U.S.C. § 6707(a)(3)

   Pub. L. 105–34, § 1028(b), added par. (3)

   Source evidence

   Code amendment note
   Subsec. (a)(3). Pub. L. 105–34, § 1028(b), added par. (3).

   Enacted provision · exact public law section
   (b) Penalty.— Subsection (a) of section 6707 (relating to failure to furnish information regarding tax shelters) is amended by adding at the end the following new paragraph: “(3) Confidential arrangements.— “(A) In general.— In the case of a tax shelter (as defined in section 6111(d)), the penalty imposed under paragraph (1) shall be an amount equal to the greater of— “(i) 50 percent of the fees paid to all promoters of the tax shelter with respect to offerings made before the date such shelter is registered under section 6111, or “(ii) $10,000. Clause (i) shall be applied by substituting ‘75 percent’ for ‘50 percent’ in the case of an intentional failure or act described in paragraph (1). “(B) Special rule for participants required to register shelter.— In the case of a person required to register such a tax shelter by reason of section 6111(d)(3)— “(i) such person shall be required to pay the penalty under paragraph (1) only if such person actually participated in such shelter, “(ii) the amount of such penalty shall be determined by taking into account under subparagraph (A)(i) only the fees paid by such person, and “(iii) such penalty shall be in addition to the penalty imposed on any other person for failing to register such shelter”.

7. 2004

   Pub. L. 108–357 title VIII § 816(a) · 118 Stat. 1418

   1. Amended · 26 U.S.C. § 6707

      Pub. L. 108–357 amended section catchline and text generally

   2. Substituted · 26 U.S.C. § 6707

      Pub. L. 108–357 substituting provisions relating to penalty for failure to furnish information regarding reportable transactions for provisions relating to penalty for failure to furnish information regarding tax shelters

   Source evidence

   Code amendment note
   Pub. L. 108–357 amended section catchline and text generally, substituting provisions relating to penalty for failure to furnish information regarding reportable transactions for provisions relating to penalty for failure to furnish information regarding tax shelters.

   Enacted provision · exact public law section
   (a) In General.— Section 6707 (relating to failure to furnish information regarding tax shelters) is amended to read as follows: “SEC. 6707. FAILURE TO FURNISH INFORMATION REGARDING REPORTABLE TRANSACTIONS. “(a) In General.— If a person who is required to file a return under section 6111(a) with respect to any reportable transaction— “(1) fails to file such return on or before the date prescribed therefor, or “(2) files false or incomplete information with the Secretary with respect to such transaction, such person shall pay a penalty with respect to such return in the amount determined under subsection (b). “(b) Amount of Penalty.— “(1) In general.— Except as provided in paragraph (2), the penalty imposed under subsection (a) with respect to any failure shall be $50,000. “(2) Listed transactions.— The penalty imposed under subsection (a) with respect to any listed transaction shall be an amount equal to the greater of— “(A) $200,000, or “(B) 50 percent of the gross income derived by such person with respect to aid, assistance, or advice which is provided with respect to the listed transaction before the date the return is filed under section 6111. Subparagraph (B) shall Applicability. be applied by substituting ‘75 percent’ for ‘50 percent’ in the case of an intentional failure or act described in subsection (a). “(c) Rescission Authority.— The Applicability. provisions of section 6707A(d) (relating to authority of Commissioner to rescind penalty) shall apply to any penalty imposed under this section. “(d) Reportable and Listed Transactions.— For purposes of this section, the terms ‘reportable transaction’ and ‘listed transaction’ have the respective meanings given to such terms by section 6707A(c).” .

   Effective date note
   Pub. L. 108–357, title VIII, § 816(c), Oct. 22, 2004, 118 Stat. 1584, provided that: “The amendments made by this section [amending this section] shall apply to returns the due date for which is after the date of the enactment of this Act [Oct. 22, 2004].”

8 of 8 references resolved to an enrolled provision