Title 26 — Internal Revenue CodeRelease 119-73
§6707 Failure to furnish information regarding reportable transactions
Title 26 › Subtitle Subtitle F— - Procedure and Administration › Chapter CHAPTER 68— - ADDITIONS TO THE TAX, ADDITIONAL AMOUNTS, AND ASSESSABLE PENALTIES › Subchapter Subchapter B— - Assessable Penalties › Part PART I— - GENERAL PROVISIONS › § 6707
Summary
If a person who must file a return under section 6111(a) about a reportable transaction misses the filing deadline or gives false or incomplete information, they must pay a penalty. The usual penalty is $50,000. For a listed transaction, the penalty is whichever is larger: $200,000 or 50 percent of the gross income the person made from helping, advising, or assisting with the listed transaction before the return was filed. The IRS Commissioner can cancel a penalty under the rules in section 6707A(d). The meanings of “reportable transaction” and “listed transaction” are the ones in section 6707A(c).
Full Legal Text
Title 26, §6707
Internal Revenue Code — Source: USLM XML via OLRC
(a)If a person who is required to file a return under section 6111(a) with respect to any reportable transaction—
(1)fails to file such return on or before the date prescribed therefor, or
(2)files false or incomplete information with the Secretary with respect to such transaction,
(b)(1)Except as provided in paragraph (2), the penalty imposed under subsection (a) with respect to any failure shall be $50,000.
(2)The penalty imposed under subsection (a) with respect to any listed transaction shall be an amount equal to the greater of—
(A)$200,000, or
(B)50 percent of the gross income derived by such person with respect to aid, assistance, or advice which is provided with respect to the listed transaction before the date the return is filed under section 6111.
(c)The provisions of section 6707A(d) (relating to authority of Commissioner to rescind penalty) shall apply to any penalty imposed under this section.
(d)For purposes of this section, the terms “reportable transaction” and “listed transaction” have the respective meanings given to such terms by section 6707A(c).
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Amendments
2004—Pub. L. 108–357 amended section catchline and text generally, substituting provisions relating to penalty for failure to furnish information regarding reportable transactions for provisions relating to penalty for failure to furnish information regarding tax shelters. 1997—Subsec. (a)(1). Pub. L. 105–34, § 1028(d)(2), which directed the substitution of “paragraph (2) or (3), as the case may be” for “paragraph (2)” in subpar. (A) of par. (1), was executed by making the substitution in the concluding provisions of par. (1) to reflect the probable intent of Congress. Subsec. (a)(2). Pub. L. 105–34, § 1028(d)(1), substituted “Except as provided in paragraph (3), the penalty” for “The penalty”. Subsec. (a)(3). Pub. L. 105–34, § 1028(b), added par. (3). 1986—Subsec. (a)(2). Pub. L. 99–514, § 1532(a), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “The penalty imposed under paragraph (1) with respect to any tax shelter shall be an amount equal to the greater of— “(A) $500, or “(B) the lesser of (i) 1 percent of the aggregate amount invested in such tax shelter, or (ii) $10,000. The $10,000 limitation in subparagraph (B) shall not apply where there is an intentional disregard of the requirements of section 6111(a).” Subsec. (b)(2). Pub. L. 99–514, § 1533(a), substituted “$250” for “$50”.
Statutory Notes and Related Subsidiaries
Effective Date
of 2004 Amendment Pub. L. 108–357, title VIII, § 816(c), Oct. 22, 2004, 118 Stat. 1584, provided that: “The
Amendments
made by this section [amending this section] shall apply to returns the due date for which is after the date of the enactment of this Act [Oct. 22, 2004].”
Effective Date
of 1997 AmendmentAmendment by Pub. L. 105–34 applicable to any tax shelter, as defined in section 6111(d) of this title, interests in which are offered to potential participants after Secretary of the Treasury prescribes guidance with respect to meeting requirements added by
Amendments
made by Pub. L. 105–34, § 1028, see section 1028(e) of Pub. L. 105–34, set out as a note under section 6111 of this title.
Effective Date
of 1986 Amendment Pub. L. 99–514, title XV, § 1532(b), Oct. 22, 1986, 100 Stat. 2750, provided that: “The amendment made by this section [amending this section] shall apply to failures with respect to tax shelters interests in which are first offered for sale after the date of the enactment of this Act [Oct. 22, 1986].” Pub. L. 99–514, title XV, § 1533(b), Oct. 22, 1986, 100 Stat. 2750, provided that: “The amendment made by this section [amending this section] shall apply to returns filed after the date of the enactment of this Act [Oct 22, 1986].”
Effective Date
Section applicable to tax shelters (within the meaning of section 6111 of this title), any interest in which is first sold to any investor after Aug. 31, 1984, see section 141(d) of Pub. L. 98–369, set out as a note under section 6111 of this title.
Reference
Citations & Metadata
Citation
26 U.S.C. § 6707
Title 26 — Internal Revenue Code
Last Updated
Apr 6, 2026
Release point: 119-73