26 U.S.C. § 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 must pay a penalty of $50 for each instrument about 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) about any issue of debt instruments on the date prescribed therefor (determined with regard to any extension of time for filing) must 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 about any issue of debt instruments must 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) must not apply in respect of the assessment or collection of any penalty imposed by this section.