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Title 26 — Internal Revenue CodeRelease 119-73

§6709 Penalties with Respect to Mortgage Credit Certificates

Title 26 › Subtitle Subtitle F— Procedure and Administration › Chapter 68— ADDITIONS TO THE TAX, ADDITIONAL AMOUNTS, AND ASSESSABLE PENALTIES › Subchapter B— Assessable Penalties › Part I— GENERAL PROVISIONS › § 6709

Last updated Apr 6, 2026|Official source

Summary

Penalties apply to people who make a material false statement, under penalties of perjury, in paperwork for a mortgage credit certificate when the misstatement comes from negligence. If the misstatement is due to fraud, the person pays a $10,000 penalty for each certificate involved, on top of any criminal penalty. Lenders and others required to file reports about these certificates pay $200 for each report they fail to file on time, unless the failure had reasonable cause and was not willful neglect. For certain reports, the total penalty is capped at $2,000.

Full Legal Text

Title 26, §6709

Internal Revenue Code — Source: USLM XML via OLRC

(a)If—
(1)any person makes a material misstatement in any verified written statement made under penalties of perjury with respect to the issuance of a mortgage credit certificate, and
(2)such misstatement is due to the negligence of such person,
(b)If a misstatement described in subsection (a)(1) is due to fraud on the part of the person making such misstatement, in addition to any criminal penalty, such person shall pay a penalty of $10,000 for each mortgage credit certificate with respect to which such a misstatement is made.
(c)Any person required by section 25(g) to file a report with the Secretary who fails to file the report with respect to any mortgage credit certificate at the time and in the manner required by the Secretary shall pay a penalty of $200 for such failure unless it is shown that such failure is due to reasonable cause and not to willful neglect. In the case of any report required under the second sentence of section 25(g), the aggregate amount of the penalty imposed by the preceding sentence shall not exceed $2,000.
(d)The term “mortgage credit certificate” has the meaning given to such term by section 25(c).

Legislative History

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Effective Date

of 1986 AmendmentAmendment by Pub. L. 99–514 effective, except as otherwise provided, as if included in the provisions of the Tax Reform Act of 1984, Pub. L. 98–369, div. A, to which such amendment relates, see section 1881 of Pub. L. 99–514, set out as a note under section 48 of this title.

Effective Date

Section applicable to interest paid or accrued after Dec. 31, 1984, on indebtedness incurred after Dec. 31, 1984, see section 612(g) of Pub. L. 98–369, set out as a note under section 25 of this title.

Reference

Citations & Metadata

Citation

26 U.S.C. § 6709

Title 26 — Internal Revenue Code

Last Updated

Apr 6, 2026

Release point: 119-73