§6726 Failure to comply with information reporting requirements relating to qualified opportunity funds and qualified rural opportunity funds

Summary

If a person who must file the report under section 6039K does not file a complete and correct report on time and in the required way, they must pay $500 for each day the failure continues. The penalty for any one return normally cannot be more than $10,000. If the fund’s gross assets (measured on the last day of the tax year) are over $10,000,000, the cap for that return is $50,000. If the failure was intentional, the daily penalty becomes $2,500. The maximum per return becomes $50,000, and for funds with more than $10,000,000 in assets the cap is $250,000. For returns required in calendar years starting after 2025, these dollar amounts will be increased by a cost-of-living adjustment computed under section 1(f)(3) using “calendar year 2024” in place of “calendar year 2016.” After that increase, the daily amounts are rounded down to the nearest $10, the $10,000,000 asset threshold is rounded down to the nearest $10,000, and other adjusted dollar amounts are rounded down to the nearest $1,000.