No penalty shall be imposed under this part with respect to any failure if it is shown that such failure is due to reasonable cause and not to willful neglect.
Any penalty imposed by this part shall be paid on notice and demand by the Secretary and in the same manner as tax.
No penalty shall be imposed under section 6721 solely by reason of any failure to comply with the requirements of the regulations prescribed under section 6011(e)(2), except to the extent that such a failure occurs with respect to more than 250 information returns (more than 100 information returns in the case of a partnership having more than 100 partners) or with respect to a return described in section 6011(e)(4).
For purposes of this part—
The term "information return" means—
(A) any statement of the amount of payments to another person required by—
(i) section 6041(a) or (b) (relating to certain information at source),
(ii) section 6042(a)(1) (relating to payments of dividends),
(iii) section 6044(a)(1) (relating to payments of patronage dividends),
(iv) section 6049(a) (relating to payments of interest),
(v) section 6050A(a) (relating to reporting requirements of certain fishing boat operators),
(vi) section 6050N(a) (relating to payments of royalties),
(vii) section 6051(d) (relating to information returns with respect to income tax withheld),
(viii) section 6050R (relating to returns relating to certain purchases of fish), or
(ix) section 110(d) (relating to qualified lessee construction allowances for short-term leases),
(B) any return required by—
(i) section 6041A(a) or (b) (relating to returns of direct sellers),
(ii) section 6043A(a) (relating to returns relating to taxable mergers and acquisitions),
(iii) section 6045(a) or (d) (relating to returns of brokers),
(iv) section 6045B(a) (relating to returns relating to actions affecting basis of specified securities),
(v) section 6050H(a) or (h)(1) (relating to mortgage interest received in trade or business from individuals),
(vi) section 6050I(a) or (g)(1) (relating to cash received in trade or business, etc.),
(vii) section 6050J(a) (relating to foreclosures and abandonments of security),
(viii) section 6050K(a) (relating to exchanges of certain partnership interests),
(ix) section 6050L(a) (relating to returns relating to certain dispositions of donated property),
(x) section 6050P (relating to returns relating to the cancellation of indebtedness by certain financial entities),
(xi) section 6050Q (relating to certain long-term care benefits),
(xii) section 6050S (relating to returns relating to payments for qualified tuition and related expenses),
(xiii) section 6050T (relating to returns relating to credit for health insurance costs of eligible individuals),
(xiv) section 6052(a) (relating to reporting payment of wages in the form of group-life insurance),
(xv) section 6050V (relating to returns relating to applicable insurance contracts in which certain exempt organizations hold interests),
(xvi) section 6053(c)(1) (relating to reporting with respect to certain tips),
(xvii) subsection (b) or (e) of section 1060 (relating to reporting requirements of transferors and transferees in certain asset acquisitions),
(xviii) section 4101(d) (relating to information reporting with respect to fuels taxes),
(xix) subparagraph (C) of section 338(h)(10) (relating to information required to be furnished to the Secretary in case of elective recognition of gain or loss),
(xx) section 264(f)(5)(A)(iv) (relating to reporting with respect to certain life insurance and annuity contracts), or 1
(xxi) section 6050U (relating to charges or payments for qualified long-term care insurance contracts under combined arrangements), and 2
(xxii) section 6039(a) (relating to returns required with respect to certain options),
(xxiii) section 6050W (relating to returns to payments made in settlement of payment card transactions),
(xxiv) section 6055 (relating to returns relating to information regarding health insurance coverage), or
(xxv) section 6056 (relating to returns relating to certain employers required to report on health insurance coverage), and
(C) any statement of the amount of payments to another person required to be made to the Secretary under—
(i) section 408(i) (relating to reports with respect to individual retirement accounts or annuities), or
(ii) section 6047(d) (relating to reports by employers, plan administrators, etc.).
Such term also includes any form, statement, or schedule required to be filed with the Secretary under chapter 4 or with respect to any amount from which tax was required to be deducted and withheld under chapter 3 (or from which tax would be required to be so deducted and withheld but for an exemption under this title or any treaty obligation of the United States).3
The term "payee statement" means any statement required to be furnished under—
(A) section 6031(b) or (c), 6034A, or 6037(b) (relating to statements furnished by certain pass-thru entities),
(B) section 6039(b) (relating to information required in connection with certain options),
(C) section 6041(d) (relating to information at source),
(D) section 6041A(e) (relating to returns regarding payments of remuneration for services and direct sales),
(E) section 6042(c) (relating to returns regarding payments of dividends and corporate earnings and profits),
(F) subsections (b) and (d) of section 6043A (relating to returns relating to taxable mergers and acquisitions).4
(G) section 6044(e) (relating to returns regarding payments of patronage dividends),
(H) section 6045(b) or (d) (relating to returns of brokers),
(I) section 6045A (relating to information required in connection with transfers of covered securities to brokers),
(J) subsections (c) and (e) of section 6045B (relating to returns relating to actions affecting basis of specified securities),
(K) section 6049(c) (relating to returns regarding payments of interest),
(L) section 6050A(b) (relating to reporting requirements of certain fishing boat operators),
(M) section 6050H(d) or (h)(2) relating 5 to returns relating to mortgage interest received in trade or business from individuals),
(N) section 6050I(e) or paragraph (4) or (5) of section 6050I(g) (relating to cash received in trade or business, etc.),
(O) section 6050J(e) (relating to returns relating to foreclosures and abandonments of security),
(P) section 6050K(b) (relating to returns relating to exchanges of certain partnership interests),
(Q) section 6050L(c) (relating to returns relating to certain dispositions of donated property),
(R) section 6050N(b) (relating to returns regarding payments of royalties),
(S) section 6050P(d) (relating to returns relating to the cancellation of indebtedness by certain financial entities),
(T) section 6050Q(b) (relating to certain long-term care benefits),
(U) section 6050R(c) (relating to returns relating to certain purchases of fish),
(V) section 6051 (relating to receipts for employees),
(W) section 6052(b) (relating to returns regarding payment of wages in the form of group-term life insurance),
(X) section 6053(b) or (c) (relating to reports of tips),
(Y) section 6048(b)(1)(B) (relating to foreign trust reporting requirements),
(Z) section 408(i) (relating to reports with respect to individual retirement plans) to any person other than the Secretary with respect to the amount of payments made to such person,
(AA) section 6047(d) (relating to reports by plan administrators) to any person other than the Secretary with respect to the amount of payments made to such person,
(BB) section 6050S(d) (relating to returns relating to qualified tuition and related expenses),
(CC) section 264(f)(5)(A)(iv) (relating to reporting with respect to certain life insurance and annuity contracts),
(DD) section 6050T (relating to returns relating to credit for health insurance costs of eligible individuals) 6
(EE) section 6050U (relating to charges or payments for qualified long-term care insurance contracts under combined arrangements),
(FF) section 6050W(c) (relating to returns relating to payments made in settlement of payment card transactions),
(GG) section 6055(c) (relating to statements relating to information regarding health insurance coverage), or
(HH) section 6056(c) (relating to statements relating to certain employers required to report on health insurance coverage).
Such term also includes any form, statement, or schedule required to be furnished to the recipient of any amount from which tax was required to be deducted and withheld under chapter 3 or 4 (or from which tax would be required to be so deducted and withheld but for an exemption under this title or any treaty obligation of the United States).
The term "specified information reporting requirement" means—
(A) the notice required by section 6050K(c)(1) (relating to requirement that transferor notify partnership of exchange),
(B) any requirement contained in the regulations prescribed under section 6109 that a person—
(i) include his TIN on any return, statement, or other document (other than an information return or payee statement),
(ii) furnish his TIN to another person, or
(iii) include on any return, statement, or other document (other than an information return or payee statement) made with respect to another person the TIN of such person,
(C) any requirement contained in the regulations prescribed under section 215 that a person—
(i) furnish his TIN to another person, or
(ii) include on his return the TIN of another person, and
(D) any requirement under section 6109(h) that—
(i) a person include on his return the name, address, and TIN of another person, or
(ii) a person furnish his TIN to another person.
The term "required filing date" means the date prescribed for filing an information return with the Secretary (determined with regard to any extension of time for filing).
If any partnership return under section 6031(a) is required under section 6011(e) to be filed on magnetic media or in other machine-readable form, for purposes of this part, each schedule required to be included with such return with respect to each partner shall be treated as a separate information return.
(Added Pub. L. 99–514, title XV, §1501(a), Oct. 22, 1986, 100 Stat. 2734; amended Pub. L. 100–418, title I, §1941(b)(2)(M), Aug. 23, 1988, 102 Stat. 1323; Pub. L. 100–647, title I, §§1006(h)(3)(A), 1015(a), title III, §3001(b)(1), (2), Nov. 10, 1988, 102 Stat. 3410, 3568, 3614; Pub. L. 101–239, title VII, §§7711(a), 7811(c)(3), 7813(a), Dec. 19, 1989, 103 Stat. 2391, 2407, 2412; Pub. L. 101–508, title XI, §§11212(e)(1), 11323(b)(2), (c)(2), Nov. 5, 1990, 104 Stat. 1388–432, 1388–465; Pub. L. 102–486, title XIX, §1933(b), Oct. 24, 1992, 106 Stat. 3031; Pub. L. 103–66, title XIII, §13252(b), Aug. 10, 1993, 107 Stat. 532; Pub. L. 103–322, title II, §20415(b)(1), (2), Sept. 13, 1994, 108 Stat. 1833; Pub. L. 104–188, title I, §§1116(b)(2)(A), (B), 1455(a), 1615(a)(2)(B), 1702(b)(1), (c)(2), 1704(j)(3), 1901(c)(1), Aug. 20, 1996, 110 Stat. 1764, 1817, 1853, 1868, 1869, 1881, 1908; Pub. L. 104–191, title III, §323(b), Aug. 21, 1996, 110 Stat. 2062; Pub. L. 105–34, title II, §201(c)(2), title XII, §§1213(b), 1223(b), title XVI, §1602(d)(2)(A), Aug. 5, 1997, 111 Stat. 805, 1001, 1019, 1094; Pub. L. 105–206, title VI, §§6004(a)(3), 6010(o)(4)(B), (C), 6012(b)(5), (d), July 22, 1998, 112 Stat. 792, 816, 819; Pub. L. 106–554, §1(a)(7) [title III, §319(23)], Dec. 21, 2000, 114 Stat. 2763, 2763A–647; Pub. L. 107–210, div. A, title II, §202(c)(2), Aug. 6, 2002, 116 Stat. 962; Pub. L. 108–357, title VIII, §§805(b), 853(d)(2)(L), (M), Oct. 22, 2004, 118 Stat. 1574, 1613; Pub. L. 109–280, title VIII, §844(d)(2), title XII, §1211(b)(1), Aug. 17, 2006, 120 Stat. 1012, 1073; Pub. L. 109–432, div. A, title IV, §403(c)(1), (2), Dec. 20, 2006, 120 Stat. 2955; Pub. L. 110–172, §11(b)(2), Dec. 29, 2007, 121 Stat. 2488; Pub. L. 110–289, div. C, title III, §3091(b), July 30, 2008, 122 Stat. 2910; Pub. L. 110–343, div. B, title IV, §403(c)(2), (d)(2), Oct. 3, 2008, 122 Stat. 3858, 3860; Pub. L. 111–147, title V, §§501(c)(6), (7), 522(b), Mar. 18, 2010, 124 Stat. 106, 113; Pub. L. 111–148, title I, §§1502(b), 1514(b), title X, §10108(j)(3)(E), (F), Mar. 23, 2010, 124 Stat. 251, 257, 915.)
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