Title 26 — Internal Revenue Code
Part II · Chapter 68 — Additions to the Tax, Additional Amounts, and Assessable Penalties
§ 6726. Failure to comply with information reporting requirements relating to qualified opportunity funds and qualified rural opportunity funds
Statutory text
In general
If any person required to file a return under section 6039K fails to file a complete and correct return under such section in the time and in the manner prescribed therefor, such person shall pay a penalty of $500 for each day during which such failure continues.
Limitation
In general
The maximum penalty under this section on failures with respect to any 1 return shall not exceed $10,000.
Large qualified opportunity funds
In the case of any failure described in subsection (a) with respect to a fund the gross assets of which (determined on the last day of the taxable year) are in excess of $10,000,000, paragraph (1) shall be applied by substituting “$50,000” for “$10,000”.
Penalty in cases of intentional disregard
If a failure described in subsection (a) is due to intentional disregard, then—
subsection (a) shall be applied by substituting “$2,500” for “$500”,
subsection (b)(1) shall be applied by substituting “$50,000” for “$10,000”, and
subsection (b)(2) shall be applied by substituting “$250,000” for “$50,000”.
Inflation adjustment
In general
In the case of any failure relating to a return required to be filed in a calendar year beginning after 2025, each of the dollar amounts in subsections (a), (b), and (c) 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 2024” for “calendar year 2016” in subparagraph (A)(ii) thereof.
Rounding
In general
If the $500 dollar amount in subsection (a) and (c)(1) or the $2,500 amount in subsection (c)(1), after being increased under paragraph (1), is not a multiple of $10, such dollar amount shall be rounded to the next lowest multiple of $10.
Asset threshold
If the $10,000,000 dollar amount in subsection (b)(2), after being increased under paragraph (1), is not a multiple of $10,000, such dollar amount shall be rounded to the next lowest multiple of $10,000.
Other dollar amounts
If any dollar amount in subsection (b) or (c) (other than any amount to which subparagraph (A) or (B) applies), after being increased under paragraph (1), is not a multiple of $1,000, such dollar amount shall be rounded to the next lowest multiple of $1,000.
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. 119–21 title VII § 70421(d)(2)(A) · 139 Stat. 230
Enacted · 26 U.S.C. § 6726
(Added Pub. L. 119–21, title VII, § 70421(d)(2)(A), July 4, 2025, 139 Stat. 230.)
Unresolved: Pub. L. 119–21 was not found in the local Statutes at Large index.
Source evidence
Code source credit
(Added Pub. L. 119–21, title VII, § 70421(d)(2)(A), July 4, 2025, 139 Stat. 230.)
0 of 1 references resolved to an enrolled provision · 1 unresolved
Notes
Inflation Adjusted Items for Certain Years
For inflation adjustment of certain items in this section, see Revenue Procedures listed in a table under section 1 of this title.
Statutory Notes and Related Subsidiaries
Effective Date
Section applicable to taxable years beginning after , see section 70421(d)(5) of Pub. L. 119–21, set out as an Effective Date of 2025 Amendment note under section 6011 of this title.
Credits
(Added Pub. L. 119–21, title VII, § 70421(d)(2)(A), , 139 Stat. 230.)