§ 6724. Waiver; definitions and special rules
(a)
Reasonable cause waiver
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.
(b)
Payment of penalty
Any penalty imposed by this part shall be paid on notice and demand by the Secretary and in the same manner as tax.
(c)
Special rule for failure to meet magnetic media requirements
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).
(d)
Definitions
For purposes of this part—
(1)
Information return
The term “information return” means—
(B)
any return required by—
(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),
(x)
section
6050P (relating to returns relating to the cancellation of indebtedness by certain financial entities),
(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),
(xvii)
subsection (b) or (e) of section
1060 (relating to reporting requirements of transferors and transferees in certain asset acquisitions),
(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]
(xxiii)
section
6050W (relating to returns to payments made in settlement of payment card transactions), 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 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]
(2)
Payee statement
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),
(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]
(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),
(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.),
(S)
section
6050P
(d) (relating to returns relating to the cancellation of indebtedness by certain financial entities),
(W)
section
6052
(b) (relating to returns regarding payment of wages in the form of group-term life insurance),
(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,
(CC)
section
264
(f)(5)(A)(iv) (relating to reporting with respect to certain life insurance and annuity contracts),
[See main edition for text of (L) to (AA)]
(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), or
(FF)
section
6050W
(c) (relating to returns relating to payments made in settlement of payment card transactions).
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 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)
Specified information reporting requirement
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—
(e)
Special rule for certain partnership returns
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.
[1] So in original. The word “or” probably should not appear.
[2] So in original. The word “and” probably should not appear.
[3] So in original. Provision probably should be set flush with par. (1).
[4] So in original. The period probably should be a comma.
[5] So in original. Probably should be preceded by an opening parenthesis.
[6] So in original. A comma probably should appear.