§6726 Failure to Comply with Information Reporting Requirements Relating to Qualified Opportunity Funds and Qualified Rural Opportunity Funds

Summary

People who must file the special information return for qualified opportunity funds must pay a penalty if they don’t file a complete and correct return on time. The normal penalty is $500 for each day the problem continues, but it cannot be more than $10,000 for one return. If the fund had more than $10,000,000 in assets at year end, the cap is $50,000. If the failure was done on purpose (intentional disregard), the daily penalty is $2,500, and the caps rise to $50,000 (general) and $250,000 (for funds over $10,000,000). For returns due in calendar years beginning after 2025, these dollar amounts will be increased for inflation using the cost-of-living rule in section 1(f)(3) with “calendar year 2024” substituted for “calendar year 2016.” After that increase, the daily amounts are rounded down to the next $10, the $10,000,000 asset threshold to the next $10,000, and other caps to the next $1,000.