Title 26 — Internal Revenue CodeRelease 119-73
§6708 Failure to maintain lists of advisees with respect to 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 › § 6708
Summary
If you must keep a list under section 6112(a), you must give that list to the Secretary within 20 business days after a written request. If you do not, you pay $10,000 for each day after the 20th day unless the delay is for reasonable cause. That fine is in addition to any other penalties the law allows.
Full Legal Text
Title 26, §6708
Internal Revenue Code — Source: USLM XML via OLRC
(a)(1)If any person who is required to maintain a list under section 6112(a) fails to make such list available upon written request to the Secretary in accordance with section 6112(b) within 20 business days after the date of such request, such person shall pay a penalty of $10,000 for each day of such failure after such 20th day.
(2)No penalty shall be imposed by paragraph (1) with respect to the failure on any day if such failure is due to reasonable cause.
(b)The penalty imposed by this section shall be in addition to any other penalty provided by law.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Codification Another section 6708 was renumbered section 6709 of this title.
Amendments
2004—Pub. L. 108–357, § 815(b)(5)(A), substituted “advisees with respect to reportable transactions” for “investors in potentially abusive tax shelters” in section catchline. Subsec. (a). Pub. L. 108–357, § 817(a), amended heading and text of subsec. (a) generally. Prior to amendment, text read as follows: “Any person who fails to meet any requirement imposed by section 6112 shall pay a penalty of $50 for each person with respect to whom there is such a failure, unless it is shown that such failure is due to reasonable cause and not due to willful neglect. The maximum penalty imposed under this subsection for any calendar year shall not exceed $100,000.” 1986—Subsec. (a). Pub. L. 99–514 substituted “$100,000” for “$50,000”.
Statutory Notes and Related Subsidiaries
Effective Date
of 2004 AmendmentAmendment by section 815(b)(5)(A) of Pub. L. 108–357 applicable to transactions with respect to which material aid, assistance, or advice referred to in section 6111(b)(1)(A)(i) of this title is provided after Oct. 22, 2004, see section 815(c) of Pub. L. 108–357, set out as a note under section 6111 of this title. Pub. L. 108–357, title VIII, § 817(b), Oct. 22, 2004, 118 Stat. 1584, provided that: “The amendment made by this section [amending this section] shall apply to requests made after the date of the enactment of this Act [Oct. 22, 2004].”
Effective Date
of 1986 Amendment Pub. L. 99–514, title XV, § 1534(b), Oct. 22, 1986, 100 Stat. 2750, provided that: “The
Amendments
made by this section [amending this section] shall apply to failures occurring or continuing after the date of the enactment of this Act [Oct. 22, 1986].”
Effective Date
Section applicable to any interest which is first sold to any investor after Aug. 31, 1984, see section 142(d) of Pub. L. 98–369, set out as a note under section 6112 of this title.
Reference
Citations & Metadata
Citation
26 U.S.C. § 6708
Title 26 — Internal Revenue Code
Last Updated
Apr 6, 2026
Release point: 119-73