Title 26 — Internal Revenue Code
Part III · Chapter 99 — Coal Industry Health Benefits
§ 9707. Failure to pay premium
Statutory text
Failures to pay
Premiums for eligible beneficiaries
There is hereby imposed a penalty on the failure of any assigned operator to pay any premium required to be paid under section 9704 with respect to any eligible beneficiary.
Contributions required under the mining laws
There is hereby imposed a penalty on the failure of any person to make a contribution required under section 402(h)(5)(B)(ii) of the Surface Mining Control and Reclamation Act of 1977 to a plan referred to in section 402(h)(2)(C) of such Act. For purposes of applying this section, each such required monthly contribution for the hours worked of any individual shall be treated as if it were a premium required to be paid under section 9704 with respect to an eligible beneficiary.
Amount of penalty
The amount of the penalty imposed by subsection (a) on any failure with respect to any eligible beneficiary shall be $100 per day in the noncompliance period with respect to any such failure.
Noncompliance period
For purposes of this section, the term “noncompliance period” means, with respect to any failure to pay any premium or installment thereof, the period—
beginning on the due date for such premium or installment, and
ending on the date of payment of such premium or installment.
Limitations on amount of penalty
In general
No penalty shall be imposed by subsection (a) on any failure during any period for which it is established to the satisfaction of the Secretary of the Treasury that none of the persons responsible for such failure knew, or exercising reasonable diligence would have known, that such failure existed.
Corrections
No penalty shall be imposed by subsection (a) on any failure if—
such failure was due to reasonable cause and not to willful neglect, and
such failure is corrected during the 30-day period beginning on the 1st date that any of the persons responsible for such failure knew, or exercising reasonable diligence would have known, that such failure existed.
Waiver
In the case of a failure that is due to reasonable cause and not to willful neglect, the Secretary of the Treasury may waive all or part of the penalty imposed by subsection (a) for failures to the extent that the Secretary determines, in his sole discretion, that the payment of such penalty would be excessive relative to the failure involved.
Liability for penalty
The person failing to meet the requirements of section 9704 shall be liable for the penalty imposed by subsection (a).
Treatment
For purposes of this title, the penalty imposed by this section shall be treated in the same manner as the tax imposed by section 4980B.
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.
Coal Industry Retiree Health Benefit Act of 1992
Pub. L. 102–486 title XIX § 19143(a) · 106 Stat. 2776
Enacted · 26 U.S.C. § 9707
Added Pub. L. 102–486, title XIX, § 19143(a), Oct. 24, 1992, 106 Stat. 3050
Source evidence
Code source credit
Added Pub. L. 102–486, title XIX, § 19143(a), Oct. 24, 1992, 106 Stat. 3050Enacted provision · exact public law section
(A) Section 401(c) of such Act (30 U.S.C. 1231(c)) is amended by striking “and” at the end of paragraph (11), by redesignating paragraph (12) as paragraph (13), and by adding after paragraph (11) the following new paragraph: “(12) for the purpose described in section 402(h); and”.Small Business Job Protection Act of 1996
Pub. L. 104–188 title I § 1704(t)(65) · 110 Stat. 1755
Struck · 26 U.S.C. § 9707(d)(1)
Pub. L. 104–188 struck out comma after “diligence”
Source evidence
Code amendment note
Subsec. (d)(1). Pub. L. 104–188 struck out comma after “diligence”.Enacted provision · exact public law section
(65) Paragraph(1) of section 9707(d) is amended by striking “diligence,” and inserting “diligence”.Surface Mining Control and Reclamation Act Amendments of 2006
Pub. L. 109–432 div. C title II § 213(b)(1) · 120 Stat. 2922
Amended · 26 U.S.C. § 9707(a)
Pub. L. 109–432 amended heading and text of subsec. (a) generally. Prior to amendment, text read as follows: “There is hereby imposed a penalty on the failure of any assigned operator to pay any premium required to be paid under section 9704 with respect to any eligible beneficiary.”
Source evidence
Code amendment note
Subsec. (a). Pub. L. 109–432 amended heading and text of subsec. (a) generally. Prior to amendment, text read as follows: “There is hereby imposed a penalty on the failure of any assigned operator to pay any premium required to be paid under section 9704 with respect to any eligible beneficiary.”Enacted provision · exact public law section
(1) Failure to pay premiums.— Section 9707(a) of the Internal Revenue Code of 1986 is amended to read as follows: “(a) Failures to Pay.— “(1) Premiums for eligible beneficiaries.— There is hereby imposed a penalty on the failure of any assigned operator to pay any premium required to be paid under section 9704 with respect to any eligible beneficiary. “(2) Contributions required under the mining laws.— There is hereby imposed a penalty on the failure of any person to make a contribution required under section 402(h)(5)(B)(ii) of the Surface Mining Control and Reclamation Act of 1977 to a plan referred to in section 402(h)(2)(C) of such Act. For purposes of applying this section, each such required monthly contribution for the hours worked of any individual shall be treated as if it were a premium required to be paid under section 9704 with respect to an eligible beneficiary.” .
3 of 3 references resolved to an enrolled provision
Editorial Notes
References in Text
Section 402 of the Surface Mining Control and Reclamation Act of 1977, referred to in subsec. (a)(2), is classified to section 1232 of Title 30, Mineral Lands and Mining.
Amendments1996–2006 · 2 rounds
2006
Subsec. (a). Pub. L. 109–432 amended heading and text of subsec. (a) generally. Prior to amendment, text read as follows: “There is hereby imposed a penalty on the failure of any assigned operator to pay any premium required to be paid under section 9704 with respect to any eligible beneficiary.”
1996
Subsec. (d)(1). Pub. L. 104–188 struck out comma after “diligence”.
Credits
1992–2006 · 3 acts
- 1992Added Pub. L. 102–486, title XIX, § 19143(a), , 106 Stat. 3050
- 1996amended Pub. L. 104–188, title I, § 1704(t)(65), , 110 Stat. 1890
- 2006Pub. L. 109–432, div. C, title II, § 213(b)(1), , 120 Stat. 3027.
Show as published
(Added Pub. L. 102–486, title XIX, § 19143(a), , 106 Stat. 3050; amended Pub. L. 104–188, title I, § 1704(t)(65), , 110 Stat. 1890; Pub. L. 109–432, div. C, title II, § 213(b)(1), , 120 Stat. 3027.)