Title 26, Internal Revenue CodeRelease 119-110
§6705 Failure by Broker to Provide Notice to Payors
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 › § 6705
Summary
Anyone required by section 3406(d)(2)(B) who intentionally fails to notify a payor owes $500 for each failure, and that fine is in addition to any other legal penalties.
Full Legal Text
Title 26, §6705
Internal Revenue Code, Source: USLM XML via OLRC
(a)In general
Any person required under section 3406(d)(2)(B) to provide notice to any payor who willfully fails to provide such notice to such payor shall pay a penalty of $500 for each such failure.
(b)Penalty in addition to other penalties
Any penalty imposed by this section shall be in addition to any other penalty provided by law.
Legislative History
Notes & Related Subsidiaries
Statutory Notes and Related Subsidiaries
Effective Date
Section effective with respect to payments made after Dec. 31, 1983, see section 110(a) of Pub. L. 98–67, set out as an
Effective Date
of 1983 Amendment note under section 31 of this title.
Reference
Citations & Metadata
Citation
26 U.S.C. § 6705
Title 26, Internal Revenue Code
Last Updated
Sep 22, 2026
Release point: 119-110