Title 26 — Internal Revenue CodeRelease 119-73
§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
Summary
If you take a tax return position based on a treaty and fail to disclose it as required, the penalty is $1,000 per failure, or $10,000 for a C corporation. The IRS can waive the penalty if you show reasonable cause and good faith. This penalty stacks on top of any other penalties.
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 6, 2026
Release point: 119-73