§6050X Information with Respect to Certain Fines, Penalties, and Other Amounts

Summary

When a government or certain covered organizations settle a lawsuit or make an agreement about breaking a law, they must tell the tax agency about the money paid. They must file a report in the form the tax agency requires. The report must show three things: the total amount paid because of the case, any part that is restitution or repair of property, and any part paid to come into compliance with a law involved in the investigation. The rule applies when the total money in the orders and agreements is $600 or more. The tax agency can change that $600 amount if needed. The report must be filed when the agreement is made, as the tax agency decides. The government or covered organization must also give each person in the case a written statement with the government or entity’s name and the same payment details sent to the tax agency. That statement must be given at the same time the report is sent. "Appropriate official" means the officer or employee in charge of the case or a person they name to handle it.