§ 6721. Failure to file correct information returns
(a)
Imposition of penalty
(1)
In general
In the case of a failure described in paragraph (2) by any person with respect to an information return, such person shall pay a penalty of $100 for each return with respect to which such a failure occurs, but the total amount imposed on such person for all such failures during any calendar year shall not exceed $1,500,000.
(b)
Reduction where correction in specified period
(1)
Correction within 30 days
If any failure described in subsection (a)(2) is corrected on or before the day 30 days after the required filing date—
(c)
Exception for de minimis failures to include all required information
(1)
In general
If—
(B)
there is a failure described in subsection (a)(2)(B) (determined after the application of section
6724
(a)) with respect to such return, and
(C)
such failure is corrected on or before August 1 of the calendar year in which the required filing date occurs,
for purposes of this section, such return shall be treated as having been filed with all of the correct required information.
(d)
Lower limitations for persons with gross receipts of not more than $5,000,000
(1)
In general
If any person meets the gross receipts test of paragraph (2) with respect to any calendar year, with respect to failures during such calendar year—
(e)
Penalty in case of intentional disregard
If 1 or more failures described in subsection (a)(2) are due to intentional disregard of the filing requirement (or the correct information reporting requirement), then, with respect to each such failure—
(2)
the penalty imposed under subsection (a) shall be $250, or, if greater—
(A)
in the case of a return other than a return required under section
6045
(a),
6041A
(b),
6050H,
6050I,
6050J,
6050K, or
6050L,
10 percent of the aggregate amount of the items required to be reported correctly,
(B)
in the case of a return required to be filed by section
6045
(a),
6050K, or
6050L,
5 percent of the aggregate amount of the items required to be reported correctly,
(C)
in the case of a return required to be filed under section
6050I
(a) with respect to any transaction (or related transactions), the greater of—
(D)
in the case of a return required to be filed under section
6050V,
10 percent of the value of the benefit of any contract with respect to which information is required to be included on the return, and
(f)
Adjustment for inflation
(1)
In general
For each fifth calendar year beginning after 2012, each of the dollar amounts under subsections (a), (b), (d) (other than paragraph (2)(A) thereof), and (e) shall be increased by such dollar amount multiplied by the cost-of-living adjustment determined under section
1
(f)(3) determined by substituting “calendar year 2011” for “calendar year 1992” in subparagraph (B) thereof.