Title 26 — Internal Revenue Code
Part I · Chapter 68 — Additions to the Tax, Additional Amounts, and Assessable Penalties
§ 6710. Failure to disclose that contributions are nondeductible
Statutory text
Imposition of penalty
If there is a failure to meet the requirement of section 6113 with respect to a fundraising solicitation by (or on behalf of) an organization to which section 6113 applies, such organization shall pay a penalty of $1,000 for each day on which such a failure occurred. The maximum penalty imposed under this subsection on failures by any organization during any calendar year shall not exceed $10,000.
Reasonable cause exception
No penalty shall be imposed under this section with respect to any failure if it is shown that such failure is due to reasonable cause.
$10,000 limitation not to apply where intentional disregard
If any failure to which subsection (a) applies is due to intentional disregard of the requirement of section 6113—
the penalty under subsection (a) for the day on which such failure occurred shall be the greater of—
$1,000, or
50 percent of the aggregate cost of the solicitations which occurred on such day and with respect to which there was such a failure,
the $10,000 limitation of subsection (a) shall not apply to any penalty under subsection (a) for the day on which such failure occurred, and
such penalty shall not be taken into account in applying such limitation to other penalties under subsection (a).
Day on which failure occurs
For purposes of this section, any failure to meet the requirement of section 6113 with respect to a solicitation—
by television or radio, shall be treated as occurring when the solicitation was telecast or broadcast,
by mail, shall be treated as occurring when the solicitation was mailed,
not by mail but in written or printed form, shall be treated as occurring when the solicitation was distributed, or
by telephone, shall be treated as occurring when the solicitation was made.
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. 100–203 title X § 10701(b) · 101 Stat. 1330
Enacted · 26 U.S.C. § 6710
(Added Pub. L. 100–203, title X, § 10701(b), Dec. 22, 1987, 101 Stat. 1330–458.)
Source evidence
Code source credit
(Added Pub. L. 100–203, title X, § 10701(b), Dec. 22, 1987, 101 Stat. 1330–458.)Enacted provision · exact public law section
(b) Penalty.— Part I of subchapter B of chapter 68 (relating to assessable penalties) is amended by adding at the end thereof the following new section: “SEC. 6710. FAILURE TO DISCLOSE THAT CONTRIBUTIONS ARE NON-DEDUCTIBLE. “(a) Imposition of Penalty.— If there is a failure to meet the requirement of section 6113 with respect to a fundraising solicitation by (or on behalf of) an organization to which section 6113 applies, such organization shall pay a penalty of $1,000 for each day on which such a failure occurred. The maximum penalty imposed under this subsection on failures by any organization during any calendar year shall not exceed $10,000. “(b) Reasonable Cause Exception.— No penalty shall be imposed under this section with respect to any failure if it is shown that such failure is due to reasonable cause. “(c) $10,000 Limitation Not To Apply Where Intentional Disregard.— If any failure to which subsection (a) applies is due to intentional disregard of the requirement of section 6113— “(1) the penalty under subsection (a) for the day on which such failure occurred shall be the greater of— “(A) $1,000, or “(B) 50 percent of the aggregate cost of the solicitations which occurred on such day and with respect to which there was such a failure, “(2) the $10,000 limitation of subsection (a) shall not apply to any penalty under subsection (a) for the day on which such failure occurred, and “(3) such penalty shall not be taken into account in applying such limitation to other penalties under subsection (a). “(d) Day on Which Failure Occurs.— For purposes of this section, any failure to meet the requirement of section 6113 with respect to a solicitation— “(1) by television or radio, shall be treated as occurring when the solicitation was telecast or broadcast, “(2) by mail, shall be treated as occurring when the solicitation was mailed, “(3) not by mail but in written or printed form, shall be treated as occurring when the solicitation was distributed, or “(4) by telephone, shall be treated as occurring when the solicitation was made.”
1 of 1 references resolved to an enrolled provision
Statutory Notes and Related Subsidiaries
Effective Date
Section applicable to solicitations after , see section 10701(d) of Pub. L. 100–203, set out as a note under section 6113 of this title.
Credits
(Added Pub. L. 100–203, title X, § 10701(b), , 101 Stat. 1330–458.)