
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: 26USC6704]

 
                     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. 6704. Failure to keep records necessary to meet reporting 
        requirements under section 6047(d)
        

(a) Liability for penalty

    Any person who--
        (1) has a duty to report or may have a duty to report any 
    information under section 6047(d), and
        (2) fails to keep such records as may be required by regulations 
    prescribed under section 6047(d) for the purpose of providing the 
    necessary data base for either current reporting or future 
    reporting,

shall pay a penalty for each calendar year for which there is any 
failure to keep such records.

(b) Amount of penalty

                           (1) In general

        The penalty of any person for any calendar year shall be $50, 
    multiplied by the number of individuals with respect to whom such 
    failure occurs in such year.

                         (2) Maximum amount

        The penalty under this section of any person for any calendar 
    year shall not exceed $50,000.

(c) Exceptions

                        (1) Reasonable cause

        No penalty shall be imposed by this section on any person for 
    any failure which is shown to be due to reasonable cause and not to 
    willful neglect.

              (2) Inability to correct previous failure

        No penalty shall be imposed by this section on any failure by a 
    person if such failure is attributable to a prior failure which has 
    been penalized under this section and with respect to which the 
    person has made all reasonable efforts to correct the failure.

                        (3) Pre-1983 failures

        No penalty shall be imposed by this section on any person for 
    any failure which is attributable to a failure occurring before 
    January 1, 1983, if the person has made all reasonable efforts to 
    correct such pre-1983 failure.

(Added Pub. L. 97-248, title III, Sec. 334(c)(1), Sept. 3, 1982, 96 
Stat. 627; amended Pub. L. 99-514, title XVIII, Sec. 1848(e)(1), Oct. 
22, 1986, 100 Stat. 2857.)


                               Amendments

    1986--Pub. L. 99-514 substituted ``section 6047(d)'' for ``section 
6047(e)'' in section catchline and in subsec. (a).


                    Effective Date of 1986 Amendment

    Amendment by Pub. L. 99-514 effective, except as otherwise provided, 
as if included in the provisions of the Tax Reform Act of 1984, Pub. L. 
98-369, div. A, to which such amendment relates, see section 1881 of 
Pub. L. 99-514, set out as a note under section 48 of this title.


                             Effective Date

    Section effective Jan. 1, 1985, see section 334(e)(3) of Pub. L. 97-
248, set out as a note under section 3405 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 section 6047 of this title.
