26 U.S. Code § 6695 - Other assessable penalties with respect to the preparation of tax returns for other persons

§ 6695.
Other assessable penalties with respect to the preparation of tax returns for other persons
(a) Failure to furnish copy to taxpayer

Any person who is a tax return preparer with respect to any return or claim for refund who fails to comply with section 6107(a) with respect to such return or claim shall pay a penalty of $50 for such failure, unless it is shown that such failure is due to reasonable cause and not due to willful neglect. The maximum penalty imposed under this subsection on any person with respect to documents filed during any calendar year shall not exceed $25,000.

(b) Failure to sign return

Any person who is a tax return preparer with respect to any return or claim for refund, who is required by regulations prescribed by the Secretary to sign such return or claim, and who fails to comply with such regulations with respect to such return or claim shall pay a penalty of $50 for such failure, unless it is shown that such failure is due to reasonable cause and not due to willful neglect. The maximum penalty imposed under this subsection on any person with respect to documents filed during any calendar year shall not exceed $25,000.

(c) Failure to furnish identifying number

Any person who is a tax return preparer with respect to any return or claim for refund and who fails to comply with section 6109(a)(4) with respect to such return or claim shall pay a penalty of $50 for such failure, unless it is shown that such failure is due to reasonable cause and not due to willful neglect. The maximum penalty imposed under this subsection on any person with respect to documents filed during any calendar year shall not exceed $25,000.

(d) Failure to retain copy or list

Any person who is a tax return preparer with respect to any return or claim for refund who fails to comply with section 6107(b) with respect to such return or claim shall pay a penalty of $50 for each such failure, unless it is shown that such failure is due to reasonable cause and not due to willful neglect. The maximum penalty imposed under this subsection on any person with respect to any return period shall not exceed $25,000.

(e) Failure to file correct information returnsAny person required to make a return under section 6060 who fails to comply with the requirements of such section shall pay a penalty of $50 for—
(1)
each failure to file a return as required under such section, and
(2)
each failure to set forth an item in the return as required under section,
unless it is shown that such failure is due to reasonable cause and not due to willful neglect. The maximum penalty imposed under this subsection on any person with respect to any return period shall not exceed $25,000.
(f) Negotiation of check

Any person who is a tax return preparer who endorses or otherwise negotiates (directly or through an agent) any check made in respect of the taxes imposed by this title which is issued to a taxpayer (other than the tax return preparer) shall pay a penalty of $500 with respect to each such check. The preceding sentence shall not apply with respect to the deposit by a bank (within the meaning of section 581) of the full amount of the check in the taxpayer’s account in such bank for the benefit of the taxpayer.

(g) Failure to be diligent in determining eligibility for earned income credit

Any person who is a tax return preparer with respect to any return or claim for refund who fails to comply with due diligence requirements imposed by the Secretary by regulations with respect to determining eligibility for, or the amount of, the credit allowable by section 32 shall pay a penalty of $500 for each such failure.

(h) Adjustment for inflation
(1) In general

In the case of any failure relating to a return or claim for refund filed in a calendar year beginning after 2014, each of the dollar amounts under subsections (a), (b), (c), (d), (e), (f), and (g) shall be increased by such dollar amount multiplied by the cost-of-living adjustment determined under section 1(f)(3) determined by substituting “calendar year 2013” for “calendar year 1992” in subparagraph (B) thereof.

(2) RoundingIf any amount adjusted under subparagraph (A)— [1]
(A)
is not less than $5,000 and is not a multiple of $500, such amount shall be rounded to the next lowest multiple of $500, and
(B)
is not described in clause (i) [2] and is not a multiple of $5, such amount shall be rounded to the next lowest multiple of $5.


[1]  So in original. Probably should be “paragraph (1)—”.

[2]  So in original. Probably should be “subparagraph (A)”.
Amendments

2014—Subsec. (h). Pub. L. 113–295 added subsec. (h).

2011—Subsec. (g). Pub. L. 112–41 substituted “$500” for “$100”.

2007—Pub. L. 110–28, § 8246(a)(2)(G)(i)(I), struck out “income” before “tax” in section catchline.

Subsecs. (a) to (d). Pub. L. 110–28, § 8246(a)(2)(G)(i)(II), substituted “a tax return preparer” for “an income tax return preparer”.

Subsec. (f). Pub. L. 110–28, § 8246(a)(2)(G)(i)(II), (ii), substituted “a tax return preparer” for “an income tax return preparer”, “this title” for “subtitle A”, and “the tax return preparer” for “the income tax return preparer”.

Subsec. (g). Pub. L. 110–28, § 8246(a)(2)(G)(i)(II), substituted “a tax return preparer” for “an income tax return preparer”.

1997—Subsec. (g). Pub. L. 105–34 added subsec. (g).

1989—Subsecs. (a) to (c). Pub. L. 101–239, § 7733(a)–(c), substituted “$50” for “$25” and inserted at end “The maximum penalty imposed under this subsection on any person with respect to documents filed during any calendar year shall not exceed $25,000.”

Subsec. (e). Pub. L. 101–239, § 7733(d), substituted “returns” for “return” in heading and amended text generally. Prior to amendment, text read as follows: “Any person required to make a return under section 6060 who fails to comply with the requirements of such section shall pay a penalty of—

“(1) $100 for each failure to file a return as required under such section, and

“(2) $5 for each failure to set forth an item in the return as required under such section,

unless it is shown that such failure is due to reasonable cause and not due to willful neglect. The maximum penalty imposed under this subsection on any person with respect to any return period shall not exceed $20,000.”

1985—Subsec. (b). Pub. L. 99–44 repealed Pub. L. 98–369, § 179(b)(2), which amended subsec. (b), and provided that the Internal Revenue Code of 1954 [now 1986] [this title] shall be applied and administered as if section 179(b)(2) (and the amendments made by such section) had not been enacted. See 1984 Amendment note and Effective Date of 1985 Amendment note below.

1984—Subsec. (b). Pub. L. 98–369 amended subsec. (b) generally, substituting provisions dealing with failure to inform taxpayer of certain recordkeeping requirements of section 274(d) of this title or to sign returns, for provisions dealing with failure to sign returns. See 1985 Amendment note above.

1978—Subsec. (f). Pub. L. 95–600 inserted provision relating to deposits by a bank.

Effective Date of 2014 Amendment

Amendment by Pub. L. 113–295 applicable to returns required to be filed after Dec. 31, 2014, see section 208(h) of Pub. L. 113–295, set out as a note under section 6651 of this title.

Effective Date of 2011 Amendment

Amendment by Pub. L. 112–41 applicable to returns required to be filed after Dec. 31, 2011, see section 501(b) of Pub. L. 112–41, set out in a note under section 3805 of Title 19, Customs Duties.

Effective Date of 2007 Amendment

Amendment by Pub. L. 110–28 applicable to returns prepared after May 25, 2007, see section 8246(c) of Pub. L. 110–28, set out as a note under section 6060 of this title.

Effective Date of 1997 Amendment

Amendment by Pub. L. 105–34 applicable to taxable years beginning after Dec. 31, 1996, see section 1085(e)(1) of Pub. L. 105–34, set out as a note under section 32 of this title.

Effective Date of 1989 Amendment

Pub. L. 101–239, title VII, § 7733(e), Dec. 19, 1989, 103 Stat. 2403, provided that:

“The amendments made by this section [amending this section] shall apply to documents prepared after December 31, 1989.”

Effective Date of 1985 Amendment

Amendment by Pub. L. 99–44 effective as if included in the amendments made by section 179(b) of Pub. L. 98–369, see section 6(a) of Pub. L. 99–44, set out as a note under section 274 of this title.

Effective Date of 1984 Amendment

Amendment by Pub. L. 98–369 applicable to taxable years beginning after Dec. 31, 1984, see section 179(d)(2) of Pub. L. 98–369, set out as an Effective Date note under section 280F of this title.

Effective Date of 1978 Amendment

Pub. L. 95–600, title VII, § 701(cc)(3), Nov. 6, 1978, 92 Stat. 2924, provided that:

“The amendments made by this subsection [amending this section and section 7701 of this title] shall apply to documents prepared after December 31, 1976.”

Repeal of Regulations Covering Substantiation by Adequate Contemporaneous Records

Regulations issued before May 24, 1985, to carry out the amendment of subsec. (b) of this section by section 179(b)(2) of Pub. L. 98–369 to have no force and effect, see section 1(c) of Pub. L. 99–44, set out as a note under section 274 of this title.

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26 CFR - Internal Revenue

26 CFR Part 1 - INCOME TAXES

26 CFR Part 20 - ESTATE TAX; ESTATES OF DECEDENTS DYING AFTER AUGUST 16, 1954

26 CFR Part 22 - TEMPORARY ESTATE TAX REGULATIONS UNDER THE ECONOMIC RECOVERY TAX ACT OF 1981

26 CFR Part 26 - GENERATION-SKIPPING TRANSFER TAX REGULATIONS UNDER THE TAX REFORM ACT OF 1986

26 CFR Part 31 - EMPLOYMENT TAXES AND COLLECTION OF INCOME TAX AT SOURCE

26 CFR Part 40 - EXCISE TAX PROCEDURAL REGULATIONS

26 CFR Part 41 - EXCISE TAX ON USE OF CERTAIN HIGHWAY MOTOR VEHICLES

26 CFR Part 44 - TAXES ON WAGERING; EFFECTIVE JANUARY 1, 1955

26 CFR Part 53 - FOUNDATION AND SIMILAR EXCISE TAXES

26 CFR Part 54 - PENSION EXCISE TAXES

26 CFR Part 55 - EXCISE TAX ON REAL ESTATE INVESTMENT TRUSTS AND REGULATED INVESTMENT COMPANIES

26 CFR Part 56 - PUBLIC CHARITY EXCISE TAXES

26 CFR Part 156 - EXCISE TAX ON GREENMAIL

26 CFR Part 157 - EXCISE TAX ON STRUCTURED SETTLEMENT FACTORING TRANSACTIONS

 

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