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

Summary

People who must file the form under section 6039K must pay $500 for each day they do not file a complete and correct return. The penalty for one return cannot be more than $10,000. If the fund’s gross assets on the last day of the tax year are more than $10,000,000, that cap is $50,000. If the failure is intentional, the daily penalty is $2,500, and the caps are $50,000 (usual) and $250,000 (large funds). For returns required in calendar years that begin after 2025, all dollar amounts are raised by the cost-of-living adjustment under section 1(f)(3) using calendar year 2024 instead of 2016. After that increase, the $500 and $2,500 amounts round down to the next $10, the $10,000,000 asset threshold rounds down to the next $10,000, and other dollar amounts in the caps round down to the next $1,000.