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Title 26 — Internal Revenue CodeRelease 119-73

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

Title 26 › Subtitle Subtitle F— Procedure and Administration › Chapter 61— INFORMATION AND RETURNS › Subchapter A— Returns and Records › Part III— INFORMATION RETURNS › Subpart B— Information Concerning Transactions With Other Persons › § 6050X

Last updated Apr 6, 2026|Official source

Summary

When a government (or certain self-regulatory entities) settles with or wins a court order against someone over a violation of law, it must report the deal to the IRS if the total involved is $600 or more. The report covers the amount required to be paid, how much of it counts as restitution or remediation of property, and how much is for coming into compliance with the law that was violated. This matters because those categories control what the payer may deduct under section 162(f). The IRS can adjust the $600 threshold to keep administration efficient. The official handling the case files the return when the agreement is entered into, and must also give each party to the suit or agreement a written statement showing the government's name and the same information sent to the IRS.

Full Legal Text

Title 26, §6050X

Internal Revenue Code — Source: USLM XML via OLRC

(a)(1)The appropriate official of any government or any entity described in section 162(f)(5) which is involved in a suit or agreement described in paragraph (2) shall make a return in such form as determined by the Secretary setting forth—
(A)the amount required to be paid as a result of the suit or agreement to which paragraph (1) of section 162(f) applies,
(B)any amount required to be paid as a result of the suit or agreement which constitutes restitution or remediation of property, and
(C)any amount required to be paid as a result of the suit or agreement for the purpose of coming into compliance with any law which was violated or involved in the investigation or inquiry.
(2)(A)A suit or agreement is described in this paragraph if—
(i)it is—
(I)a suit with respect to a violation of any law over which the government or entity has authority and with respect to which there has been a court order, or
(II)an agreement which is entered into with respect to a violation of any law over which the government or entity has authority, or with respect to an investigation or inquiry by the government or entity into the potential violation of any law over which such government or entity has authority, and
(ii)the aggregate amount involved in all court orders and agreements with respect to the violation, investigation, or inquiry is $600 or more.
(B)The Secretary shall adjust the $600 amount in subparagraph (A)(ii) as necessary in order to ensure the efficient administration of the internal revenue laws.
(3)The return required under this subsection shall be filed at the time the agreement is entered into, as determined by the Secretary.
(b)Every person required to make a return under subsection (a) shall furnish to each person who is a party to the suit or agreement a written statement showing—
(1)the name of the government or entity, and
(2)the information supplied to the Secretary under subsection (a)(1).
(c)For purposes of this section, the term “appropriate official” means the officer or employee having control of the suit, investigation, or inquiry or the person appropriately designated for purposes of this section.

Legislative History

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Effective Date

Pub. L. 115–97, title I, § 13306(b)(3), Dec. 22, 2017, 131 Stat. 2129, provided that: “The

Amendments

made by this subsection [enacting this section] shall apply to amounts paid or incurred on or after the date of the enactment of this Act [Dec. 22, 2017], except that such

Amendments

shall not apply to amounts paid or incurred under any binding order or agreement entered into before such date. Such exception shall not apply to an order or agreement requiring court approval unless the approval was obtained before such date.”

Reference

Citations & Metadata

Citation

26 U.S.C. § 6050X

Title 26 — Internal Revenue Code

Last Updated

Apr 6, 2026

Release point: 119-73