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Title 26, Internal Revenue CodeRelease 119-110

§6689 Failure to File Notice of Redetermination of Foreign Tax

Title 26 › Subtitle F — Procedure and Administration › CHAPTER 68 — ADDITIONS TO THE TAX, ADDITIONAL AMOUNTS, AND ASSESSABLE PENALTIES › Subchapter B — Assessable Penalties › PART I — GENERAL PROVISIONS › § 6689

Last updated Sep 22, 2026|Official source

Summary

If a taxpayer does not tell the Secretary by the deadline set in the regulations about a foreign tax redetermination, a penalty is added to the tax shortfall from that redetermination. The penalty is 5% if the failure lasts up to one month, plus 5% for each additional month or part of a month, capped at 25%, unless the taxpayer shows a good reason and not willful neglect. Foreign tax redetermination: any redetermination requiring notice under section 905(c) or section 404A(g)(2).

Full Legal Text

Title 26, §6689

Internal Revenue Code, Source: USLM XML via OLRC

(a)Civil penalty
If the taxpayer fails to notify the Secretary (on or before the date prescribed by regulations for giving such notice) of a foreign tax redetermination, unless it is shown that such failure is due to reasonable cause and not due to willful neglect, there shall be added to the deficiency attributable to such redetermination an amount (not in excess of 25 percent of the deficiency) determined as follows—
(1)5 percent of the deficiency if the failure is for not more than 1 month, with
(2)an additional 5 percent of the deficiency for each month (or fraction thereof) during which the failure continues.
(b)Foreign tax redetermination defined
For purposes of this section, the term “foreign tax redetermination” means any redetermination for which a notice is required under subsection (c) of section 905 or paragraph (2) of section 404A(g).

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 6689, added Pub. L. 93–17, § 3(d)(2), Apr. 10, 1973, 87 Stat. 16, related to failure by certain foreign issuers and obligors to comply with United States investment equalization tax requirements, prior to repeal by Pub. L. 94–455, title XIX, § 1904(b)(10)(E)(i), Oct. 4, 1976, 90 Stat. 1817.

Statutory Notes and Related Subsidiaries

Effective Date

For applicability of section with respect to employer contributions or accruals for taxable years beginning after Dec. 31, 1979, election to apply

Amendments

retroactively with respect to foreign subsidiaries, allowance of prior deductions in case of certain funded branch plans, and time and manner for making elections, see section 2(e) of Pub. L. 96–603, set out as a note under section 404A of this title.

Reference

Citations & Metadata

Citation

26 U.S.C. § 6689

Title 26, Internal Revenue Code

Last Updated

Sep 22, 2026

Release point: 119-110