Title 26 — Internal Revenue CodeRelease 119-73not60

§6712 Failure to Disclose Treaty-based Return Positions

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 › § 6712

Last updated Apr 5, 2026|Official source

Summary

If a taxpayer fails to follow the required disclosure rules, they must pay a penalty of $1,000 for each failure, or $10,000 for each failure if the taxpayer is a C corporation. The IRS can cancel all or part of the penalty if the taxpayer shows reasonable cause and acted in good faith. The penalty is added on top of any other penalties that apply.

Full Legal Text

Title 26, §6712

Internal Revenue Code — Source: USLM XML via OLRC

(a)If a taxpayer fails to meet the requirements of section 6114, there is hereby imposed a penalty equal to $1,000 ($10,000 in the case of a C corporation) on each such failure.

(b)The Secretary may waive all or any part of the penalty provided by this section on a showing by the taxpayer that there was reasonable cause for the failure and that the taxpayer acted in good faith.

(c)The penalty imposed by this section shall be in addition to any other penalty imposed by law.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Codification Another section 6712 was renumbered section 6713 of this title.

Statutory Notes and Related Subsidiaries

Effective Date

Section applicable to taxable periods the due date for filing returns for which (without extension) occurs after Dec. 31, 1988, see section 1012(aa)(5)(D) of Pub. L. 100–647, set out as a note under section 6114 of this title.

Reference

Citations & Metadata

Citation

26 U.S.C. § 6712

Title 26 — Internal Revenue Code

Last Updated

Apr 5, 2026

Release point: 119-73not60