§6704 Failure to Keep Records Necessary to Meet Reporting Requirements Under Section 6047(d)

Summary

People who must—or might have to—report information under section 6047(d) must keep the records that the rules under that section require so reports can be made now or in the future. If they fail, the penalty is $50 for each individual affected that year, up to $50,000 total for the year. No penalty applies if the failure was due to reasonable cause and not willful neglect. No penalty applies if the failure is tied to an earlier failure that was already penalized and the person has made all reasonable efforts to fix it. Failures that happened before January 1, 1983 also carry no penalty if the person has made all reasonable efforts to correct them.