
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document affected by Public Law 106-554 Section 1(a)(7)]
[Document affected by Public Law 107-16 Section 402(a)(4)(A)]
[Document affected by Public Law 107-22 Section 1(b)(2)(C)]
[CITE: 26USC6693]

 
                     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. 6693. Failure to provide reports on certain tax-favored 
        accounts or annuities; penalties relating to designated 
        nondeductible contributions
        

(a) Reports

                           (1) In general

        If a person required to file a report under a provision referred 
    to in paragraph (2) fails to file such report at the time and in the 
    manner required by such provision, such person shall pay a penalty 
    of $50 for each failure unless it is shown that such failure is due 
    to reasonable cause.

                           (2) Provisions

        The provisions referred to in this paragraph are--
            (A) subsections (i) and (l) of section 408 (relating to 
        individual retirement plans),
            (B) section 220(h) (relating to Archer MSAs),
            (C) section 529(d) (relating to qualified State tuition 
        programs), and
            (D) section 530(h) (relating to education individual 
        retirement accounts).

This subsection shall not apply to any report which is an information 
return described in section 6724(d)(1)(C)(i) or a payee statement 
described in section 6724(d)(2)(X).

(b) Penalties relating to nondeductible contributions

     (1) Overstatement of designated nondeductible contributions

        Any individual who--
            (A) is required to furnish information under section 
        408(o)(4) as to the amount of designated nondeductible 
        contributions made for any taxable year, and
            (B) overstates the amount of such contributions made for 
        such taxable year,

    shall pay a penalty of $100 for each such overstatement unless it is 
    shown that such overstatement is due to reasonable cause.

                      (2) Failure to file form

        Any individual who fails to file a form required to be filed by 
    the Secretary under section 408(o)(4) shall pay a penalty of $50 for 
    each such failure unless it is shown that such failure is due to 
    reasonable cause.

(c) Penalties relating to simple retirement accounts

                       (1) Employer penalties

        An employer who fails to provide 1 or more notices required by 
    section 408(l)(2)(C) shall pay a penalty of $50 for each day on 
    which such failures continue.

                  (2) Trustee and issuer penalties

        A trustee or issuer who fails--
            (A) to provide 1 or more statements required by the last 
        sentence of section 408(i) shall pay a penalty of $50 for each 
        day on which such failures continue, or
            (B) to provide 1 or more summary descriptions required by 
        section 408(l)(2)(B) shall pay a penalty of $50 for each day on 
        which such failures continue.

                   (3) Reasonable cause exception

        No penalty shall be imposed under this subsection with respect 
    to any failure which the taxpayer shows was due to reasonable cause.

(d) Deficiency procedures not to apply

    Subchapter B of chapter 63 (relating to deficiency procedures for 
income, estate, gift, and certain excise taxes) does not apply to the 
assessment or collection of any penalty imposed by this section.

(Added Pub. L. 93-406, title II, Sec. 2002(f), Sept. 2, 1974, 88 Stat. 
967; amended Pub. L. 96-222, title I, Sec. 101(a)(10)(H), Apr. 1, 1980, 
94 Stat. 203; Pub. L. 98-369, div. A, title I, Sec. 147(b), July 18, 
1984, 98 Stat. 687; Pub. L. 99-514, title XI, Sec. 1102(d)(1), (2)(A), 
(B), Oct. 22, 1986, 100 Stat. 2416; Pub. L. 100-647, title I, 
Sec. 1011(b)(4)(A), (B)(i), Nov. 10, 1988, 102 Stat. 3456, 3457; Pub. L. 
104-188, title I, Secs. 1421(b)(4)(B), 1455(d)(3), Aug. 20, 1996, 110 
Stat. 1796, 1818; Pub. L. 104-191, title III, Sec. 301(g), Aug. 21, 
1996, 110 Stat. 2052; Pub. L. 105-34, title II, Secs. 211(e)(2)(B), (C), 
213(c), title XVI, Secs. 1601(d)(1)(C)(ii), 1602(a)(4), Aug. 5, 1997, 
111 Stat. 812, 816, 1087, 1094; Pub. L. 105-277, div. J, title IV, 
Sec. 4006(c)(4), Oct. 21, 1998, 112 Stat. 2681-913; Pub. L. 106-554, 
Sec. 1(a)(7) [title II, Sec. 202(b)(2)(E)], Dec. 21, 2000, 114 Stat. 
2763, 2763A-629.)


                               Amendments

    2000--Subsec. (a)(2)(B). Pub. L. 106-554 substituted ``Archer MSAs'' 
for ``medical savings accounts''.
    1998--Subsec. (a)(2)(C), (D). Pub. L. 105-277 substituted 
``section'' for ``Section''.
    1997--Pub. L. 105-34, Sec. 211(e)(2)(C), substituted ``certain tax-
favored'' for ``individual retirement'' in section catchline.
    Subsec. (a). Pub. L. 105-34, Sec. 1602(a)(4), inserted concluding 
provisions.
    Subsec. (a)(2)(C). Pub. L. 105-34, Sec. 211(e)(2)(B), added subpar. 
(C).
    Subsec. (a)(2)(D). Pub. L. 105-34, Sec. 213(c), added subpar. (D).
    Subsec. (c)(2). Pub. L. 105-34, Sec. 1601(d)(1)(C)(ii), inserted 
``and issuer'' before ``penalties'' in heading and ``or issuer'' before 
``who fails'' in introductory provisions.
    1996--Subsec. (a). Pub. L. 104-191 inserted heading and amended text 
generally. Prior to amendment, text read as follows: ``The person 
required by subsection (i) or (l) of section 408 to file a report 
regarding an individual retirement account or individual retirement 
annuity at the time and in the manner required by such subsection shall 
pay a penalty of $50 for each failure unless it is shown that such 
failure is due to reasonable cause. This subsection shall not apply to 
any report which is an information return described in section 
6724(d)(1)(C)(i) or a payee statement described in section 
6724(d)(2)(W).''
    Pub. L. 104-188, Sec. 1455(d)(3), inserted at end ``This subsection 
shall not apply to any report which is an information return described 
in section 6724(d)(1)(C)(i) or a payee statement described in section 
6724(d)(2)(W).''
    Subsecs. (c), (d). Pub. L. 104-188, Sec. 1421(b)(4)(B), added 
subsec. (c) and redesignated former subsec. (c) as (d).
    1988--Pub. L. 100-647, Sec. 1011(b)(4)(B)(i), substituted 
``penalties relating to'' for ``overstatement of'' in section catchline.
    Subsec. (b). Pub. L. 100-647, Sec. 1011(b)(4)(A), substituted 
``Penalties relating to'' for ``Overstatement of designated'' in heading 
and amended text generally. Prior to amendment, text read as follows: 
``Any individual who--
        ``(1) is required to furnish information under section 408(o)(4) 
    as to the amount of designated nondeductible contributions made for 
    any taxable year, and
        ``(2) overstates the amount of such contributions made for such 
    taxable year,
shall pay a penalty of $100 for each such overstatement unless it is 
shown that such overstatement is due to reasonable cause.''
    1986--Pub. L. 99-514, Sec. 1102(d)(2)(B), inserted ``; overstatement 
of designated nondeductible contributions'' in section catchline.
    Subsec. (b). Pub. L. 99-514, Sec. 1102(d)(1), added subsec. (b). 
Former subsec. (b) redesignated (c).
    Subsec. (c). Pub. L. 99-514, Sec. 1102(d)(1), (2)(A), redesignated 
former subsec. (b) as (c) and substituted ``this section'' for 
``subsection (a)''.
    1984--Subsec. (a). Pub. L. 98-369 substituted ``$50'' for ``$10''.
    1980--Subsec. (a). Pub. L. 96-222 substituted ``subsection (i) or 
(l) of section 408 to file'' for ``section 408(i) to file'', and ``such 
subsection shall pay'' for ``section 408(i) shall pay''.


                    Effective Date of 1997 Amendment

    Amendment by section 211(e)(2)(B), (C) of Pub. L. 105-34 effective 
Jan. 1, 1998, see section 211(f) of Pub. L. 105-34, set out as a note 
under section 529 of this title.
    Amendment by section 213(c) of Pub. L. 105-34 applicable to taxable 
years beginning after Dec. 31, 1997, see section 213(f) of Pub. L. 105-
34, set out as a note under section 26 of this title.
    Amendment by section 1601(d)(1)(C)(ii) of Pub. L. 105-34 effective 
as if included in the provisions of the Small Business Job Protection 
Act of 1996, Pub. L. 104-188, to which it relates, see section 1601(j) 
of Pub. L. 105-34, set out as a note under section 23 of this title.
    Amendment by section 1602(a)(4) of Pub. L. 105-34 effective as if 
included in the provisions of the Health Insurance Portability and 
Accountability Act of 1996, Pub. L. 104-191, to which such amendment 
relates, see section 1602(i) of Pub. L. 105-34, set out as a note under 
section 26 of this title.


                    Effective Date of 1996 Amendments

    Amendment by Pub. L. 104-191 applicable to taxable years beginning 
after Dec. 31, 1996, see section 301(j) of Pub. L. 104-191, set out as a 
note under section 62 of this title.
    Amendment by section 1421(b)(4)(B) of Pub. L. 104-188 applicable to 
taxable years beginning after Dec. 31, 1996, see section 1421(e) of Pub. 
L. 104-188, set out as a note under section 72 of this title.
    Amendment by section 1455(d)(3) of Pub. L. 104-188 applicable to 
returns, reports, and other statements the due date for which 
(determined without regard to extensions) is after Dec. 31, 1996, see 
section 1455(e) of Pub. L. 104-188, set out as a note under section 408 
of this title.


                    Effective Date of 1988 Amendment

    Amendment by Pub. L. 100-647 effective, except as otherwise 
provided, as if included in the provision of the Tax Reform Act of 1986, 
Pub. L. 99-514, to which such amendment relates, see section 1019(a) of 
Pub. L. 100-647, set out as a note under section 1 of this title.


                    Effective Date of 1986 Amendment

    Amendment by Pub. L. 99-514 applicable to contributions and 
distributions for taxable years beginning after Dec. 31, 1986, see 
section 1102(g) of Pub. L. 99-514, set out as a note under section 219 
of this title.


                    Effective Date of 1984 Amendment

    Amendment by Pub. L. 98-369 applicable to failures occurring after 
July 18, 1984, see section 147(d)(2) of Pub. L. 98-369, set out as a 
note under section 219 of this title.


                    Effective Date of 1980 Amendment

    Section 101(b)(1)(F) of Pub. L. 96-222 provided that: ``The 
amendment made by subparagraph (I) of subsection (a)(10) [probably means 
subpar. (H) of subsec. (a)(10), which amended this section] shall apply 
with respect to failures occuring [sic] after the date of the enactment 
of this Act [Apr. 1, 1980].''


                             Effective Date

    Section effective Jan. 1, 1975, see section 2002(i)(2) of Pub. L. 
93-406, set out as a note under section 4973 of this title.


           Plan Amendments Not Required Until January 1, 1998

    For provisions directing that if any amendments made by subtitle D 
[Secs. 1401-1465] of title I of Pub. L. 104-188 require an amendment to 
any plan or annuity contract, such amendment shall not be required to be 
made before the first day of the first plan year beginning on or after 
Jan. 1, 1998, see section 1465 of Pub. L. 104-188, set out as a note 
under section 401 of this title.


           Plan Amendments Not Required Until January 1, 1989

    For provisions directing that if any amendments made by subtitle A 
or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or title XVIII 
[Secs. 1800-1899A] of Pub. L. 99-514 require an amendment to any plan, 
such plan amendment shall not be required to be made before the first 
plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. 
L. 99-514, as amended, set out as a note under section 401 of this 
title.

                  Section Referred to in Other Sections

    This section is referred to in sections 220, 408 of this title.
