
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC6706]

 
                     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. 6706. Original issue discount information requirements


(a) Failure to show information on debt instrument

    In the case of a failure to set forth on a debt instrument the 
information required to be set forth on such instrument under section 
1275(c)(1), unless it is shown that such failure is due to reasonable 
cause and not to willful neglect, the issuer shall pay a penalty of $50 
for each instrument with respect to which such a failure exists.

(b) Failure to furnish information to Secretary

    Any issuer who fails to furnish information required under section 
1275(c)(2) with respect to any issue of debt instruments on the date 
prescribed therefor (determined with regard to any extension of time for 
filing) shall pay a penalty equal to 1 percent of the aggregate issue 
price of such issue, unless it is shown that such failure is due to 
reasonable cause and not willful neglect. The amount of the penalty 
imposed under the preceding sentence with respect to any issue of debt 
instruments shall not exceed $50,000 for such issue.

(c) Deficiency procedures not to apply

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

(Added Pub. L. 98-369, div. A, title I, Sec. 41(c)(1), July 18, 1984, 98 
Stat. 555.)


                             Effective Date

    Section effective on day 30 days after July 18, 1984, see section 
44(h) of Pub. L. 98-369, set out as a note under section 1271 of this 
title.

                  Section Referred to in Other Sections

    This section is referred to in section 1275 of this title.
