Failure to comply
(2) Failure to comply. A failure to comply with the requirements of section 6038B includes (i) The failure to report at the proper time and in the proper manner any information required to be reported under the rules of this section; and (ii) The provision of false or inaccurate information in purported compliance with the requirements of this section. (3) Reasonable cause exception. Under section 6038B(c)(2) and this section, the provisions of paragraph (h)(1) of this section will not apply if the United States person shows, in a timely manner, that a failure to comply was due to reasonable cause and not willful neglect. A United States person's statement that the failure to comply was due to reasonable cause and not willful neglect will be considered timely only if, promptly after the United States person becomes aware of the failure, an amended return is filed for the taxable year to which the failure relates that includes the information that should have been included with the original return for such taxable year or that otherwise complies with the rules of this section, and that includes a written statement explaining the reasons for the failure to comply. If any taxable year of the United States person is under examination when the amended return is filed, a copy of the amended return must be delivered to the Internal Revenue Service personnel conducting the examination when the amended return is filed. If no taxable year of the United States person is under examination when the amended return is filed, a copy of the amended return must be delivered to the Director of Field Operations, Cross Border Activities Practice Area of Large Business & International (or any successor to the roles and responsibilities of such position, as appropriate) (Director). Whether a failure to comply was due to reasonable cause and not willful neglect will be determined by the Director under all the facts and circumstances. (4) Statute of limitations. For exceptions to the limitations on assessment in the event of a failure to provide information under section 6038B, see section 6501(c)(8). (i) Definitions(1) Appreciated property. Appreciated property is property that has a fair market value in excess of basis. (2) Domestic partnership. A domestic partnership is a partnership described in section 7701(a)(4). (3) Foreign partnership. A foreign partnership is a partnership described in section 7701(a)(5). (4) Related person. Persons are related persons if they bear a relationship described in section 267(b)(1) through (3) or (10) through (12), after application of section 267(c) (except for (c)(3)), or in section 707(b)(1)(B). (5) Substituted basis property. Substituted basis property is property described in section 7701(a)(42). (6) Taxpayer-initiated adjustment. A taxpayer-initiated adjustment is a section 482 adjustment that is made by the taxpayer pursuant to 1.482-1(a)(3). (7) United States person. A United States person is a person described in section 7701(a)(30).