
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: 26USC6722]

 
                     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 II--FAILURE TO COMPLY WITH CERTAIN INFORMATION REPORTING 
                              REQUIREMENTS
 
Sec. 6722. Failure to furnish correct payee statements


(a) General rule

    In the case of each failure described in subsection (b) by any 
person with respect to a payee statement, such person shall pay a 
penalty of $50 for each statement with respect to which such a failure 
occurs, but the total amount imposed on such person for all such 
failures during any calendar year shall not exceed $100,000.

(b) Failures subject to penalty

    For purposes of subsection (a), the failures described in this 
subsection are--
        (1) any failure to furnish a payee statement on or before the 
    date prescribed therefor to the person to whom such statement is 
    required to be furnished, and
        (2) any failure to include all of the information required to be 
    shown on a payee statement or the inclusion of incorrect 
    information.

(c) Penalty in case of intentional disregard

    If 1 or more failures to which subsection (a) applies are due to 
intentional disregard of the requirement to furnish a payee statement 
(or the correct information reporting requirement), then, with respect 
to each failure--
        (1) the penalty imposed under subsection (a) shall be $100, or, 
    if greater--
            (A) in the case of a payee statement other than a statement 
        required under section 6045(b), 6041A(e) (in respect of a return 
        required under section 6041A(b)), 6050H(d), 6050J(e), 6050K(b), 
        or 6050L(c), 10 percent of the aggregate amount of the items 
        required to be reported correctly, or
            (B) in the case of a payee statement required under section 
        6045(b), 6050K(b), or 6050L(c), 5 percent of the aggregate 
        amount of the items required to be reported correctly, and

        (2) in the case of any penalty determined under paragraph (1)--
            (A) the $100,000 limitation under subsection (a) shall not 
        apply, and
            (B) such penalty shall not be taken into account in applying 
        such limitation to penalties not determined under paragraph (1).

(Added Pub. L. 99-514, title XV, Sec. 1501(a), Oct. 22, 1986, 100 Stat. 
2733; amended Pub. L. 101-239, title VII, Sec. 7711(a), Dec. 19, 1989, 
103 Stat. 2390.)


                               Amendments

    1989--Pub. L. 101-239 substituted ``correct'' for ``certain'' in 
section catchline and amended text generally, substituting subsecs. (a) 
to (c) for former subsec. (a) stating general rule and subsec. (b) 
relating to failure to notify partnership of exchange of partnership 
interest.


                    Effective Date of 1989 Amendment

    Amendment by Pub. L. 101-239 applicable to returns and statements 
the due date for which (determined without regard to extensions) is 
after Dec. 31, 1989, see section 7711(c) of Pub. L. 101-239, set out as 
a note under section 6721 of this title.


                             Effective Date

    Section applicable to returns the due date for which (determined 
without regard to extensions) is after Dec. 31, 1986, see section 
1501(e) of Pub. L. 99-514, set out as a note under section 6721 of this 
title.

                  Section Referred to in Other Sections

    This section is referred to in section 6047 of this title.
