§ 6722. Failure to furnish correct payee statements
(a)
Imposition of penalty
(1)
General rule
In the case of each failure described in paragraph (2) by any person with respect to a payee statement, such person shall pay a penalty of $100 for each statement 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
(1)
In general
If—
(A)
a payee statement is furnished to the person to whom such statement is required to be furnished,
(B)
there is a failure described in subsection (a)(2)(B) (determined after the application of section
6724
(a)) with respect to such statement, 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 statement shall be treated as having been furnished with all of the correct required information.
(d)
Lower limitations for persons with gross receipts of not more than $5,000,000
(e)
Penalty in case of intentional disregard
If 1 or more failures to which subsection (a) applies are due to intentional disregard of the requirement to furnish a payee statement (or the correct information reporting requirement), then, with respect to each such failure—
(2)
the penalty imposed under subsection (a)(1) shall be $250, or, if greater—
(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)(1), 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.