
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC6679]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                Subtitle F--Procedure and Administration
 
  CHAPTER 68--ADDITIONS TO THE TAX, ADDITIONAL AMOUNTS, AND ASSESSABLE 
                                PENALTIES
 
                   Subchapter B--Assessable Penalties
 
                       PART I--GENERAL PROVISIONS
 
Sec. 6679. Failure to file returns, etc., with respect to 
        foreign corporations or foreign partnerships
        

(a) Civil penalty

                           (1) In general

        In addition to any criminal penalty provided by law, any person 
    required to file a return under section 6035, 6046, or 6046A who 
    fails to file such return at the time provided in such section, or 
    who files a return which does not show the information required 
    pursuant to such section, shall pay a penalty of $10,000, unless it 
    is shown that such failure is due to reasonable cause.

       (2) Increase in penalty where failure continues after 
                                notification

        If any failure described in paragraph (1) continues for more 
    than 90 days after the day on which the Secretary mails notice of 
    such failure to the United States person, such person shall pay a 
    penalty (in addition to the amount required under paragraph (1)) of 
    $10,000 for each 30-day period (or fraction thereof) during which 
    such failure continues after the expiration of such 90-day period. 
    The increase in any penalty under this paragraph shall not exceed 
    $50,000.

    (3) Reduced penalty for returns relating to foreign personal 
                              holding companies

        In the case of a return required under section 6035, paragraph 
    (1) shall be applied by substituting ``$1,000'' for ``$10,000'', and 
    paragraph (2) shall not apply.

(b) Deficiency procedures not to apply

    Subchapter B of chapter 63 (relating to deficiency procedure for 
income, estate, gift, and certain excise taxes) shall not apply in 
respect of the assessment or collection of any penalty imposed by 
subsection (a).

(Added Pub. L. 87-834, Sec. 20(c), Oct. 16, 1962, 76 Stat. 1062; amended 
Pub. L. 91-172, title I, Sec. 101(j)(54), Dec. 30, 1969, 83 Stat. 532; 
Pub. L. 93-406, title II, Sec. 1016(a)(22), Sept. 2, 1974, 88 Stat. 931; 
Pub. L. 97-248, title III, Sec. 340(b)(1), (2), title IV, Sec. 405(b), 
(c)(2), Sept. 3, 1982, 96 Stat. 634, 670; Pub. L. 97-448, title III, 
Sec. 306(c)(2), Jan. 12, 1983, 96 Stat. 2406; Pub. L. 105-34, title XI, 
Sec. 1143(b), Aug. 5, 1997, 111 Stat. 983.)


                               Amendments

    1997--Subsec. (a). Pub. L. 105-34 reenacted heading without change 
and amended text generally. Prior to amendment, text read as follows: 
``In addition to any criminal penalty provided by law, any person 
required to file a return under section 6035, 6046, or 6046A who fails 
to file such return at the time provided in such section, or who files a 
return which does not show the information required pursuant to such 
section, shall pay a penalty of $1,000, unless it is shown that such 
failure is due to reasonable cause.''
    1983--Pub. L. 97-448 amended language of Pub. L. 97-248, 
Sec. 405(b), (c)(2), to clarify an ambiguity created by the conflicting 
language of Secs. 340(b)(1), (2) and 405(b), (c)(2) of Pub. L. 97-248. 
See 1982 Amendment note below.
    1982--Pub. L. 97-248, Secs. 340(b)(2), 405(c)(2), as amended by Pub. 
L. 97-448, Sec. 306(c)(2)(B), substituted ``Failure to file returns, 
etc., with respect to foreign corporations or foreign partnerships'' for 
``Failure to file returns as to organization or reorganization of 
foreign corporations and as to acquisitions of their stock'' in section 
catchline.
    Subsec. (a). Pub. L. 97-248, Secs. 340(b)(1), 405(b), as amended by 
Pub. L. 97-448, Sec. 306(a)(2)(A), substituted ``section 6035, 6046, or 
6046A'' for ``section 6046''.
    1974--Subsec. (b). Pub. L. 93-406 substituted ``and certain excise'' 
for ``chapter 42''.
    1969--Subsec. (b). Pub. L. 91-172 inserted reference to chapter 42 
taxes.


                    Effective Date of 1997 Amendment

    Amendment by Pub. L. 105-34 applicable to transfers and changes 
after Aug. 5, 1997, see section 1143(c) of Pub. L. 105-34, set out as a 
note under section 6046A of this title.


                    Effective Date of 1983 Amendment

    Amendment by Pub. L. 97-448 effective as if included in the 
provisions of the Tax Equity and Fiscal Responsibility Act of 1982, Pub. 
L. 97-248, to which such amendment relates, see section 311(d) of Pub. 
L. 97-448, set out as a note under section 31 of this title.


                    Effective Date of 1982 Amendment

    Amendment by section 340(b)(1), (2) of Pub. L. 97-248 applicable to 
taxable years of foreign corporations beginning after Sept. 3, 1982, see 
section 340(c) of Pub. L. 97-248, set out as a note under section 6035 
of this title.
    Amendment by section 405(b), (c)(2) of Pub. L. 97-248 applicable 
with respect to acquisitions or dispositions of, or substantial changes 
in, interests in foreign partnerships occurring after Sept. 3, 1982, see 
section 407(b) of Pub. L. 97-248, set out as an Effective Date note 
under section 6046A of this title.


                    Effective Date of 1974 Amendment

    Amendment by Pub. L. 93-406 applicable, except as otherwise provided 
in section 1017(c) through (i) of Pub. L. 93-406, for plan years 
beginning after Sept. 2, 1974, but, in the case of plans in existence on 
Jan. 1, 1974, amendment by Pub. L. 93-406 applicable for plan years 
beginning after Dec. 31, 1975, see section 1017 of Pub. L. 93-406, set 
out as an Effective Date; Transitional Rules note under section 410 of 
this title.


                    Effective Date of 1969 Amendment

    Amendment by Pub. L. 91-172 effective Jan. 1, 1970, see section 
101(k)(1) of Pub. L. 91-172, set out as an Effective Date note under 
section 4940 of this title.

                  Section Referred to in Other Sections

    This section is referred to in section 6046A of this title.
