26 U.S.C. § 6698 — Failure to file partnership return
submitted 48 years ago by Pub. L. 95-600 to r/title-26-INTERNAL-REVENUE-CODE · 330 words · no verdicts yet
A partnership that files its required return or partnership adjustment tracking report late or without required information owes a monthly penalty for up to 12 months, unless reasonable cause is shown. The monthly amount is $195 times the number of partners, subject to inflation adjustment.
(a) General rule. In addition to section 7203’s penalty, a partnership* required to file a section 6031 return or section 6226(b)(4)(A) partnership adjustment tracking report owes the subsection (b) penalty for each month or part of a month, up to 12 months, if it files late or files without required information. No penalty applies if reasonable cause caused the failure. (b) Amount per month. Multiply $195 by the number of people who were partners during any part of the taxable year*. (c) Assessment. Assess the penalty against the partnership. (d) Deficiency* procedures. Subchapter B of chapter 63 does not apply to assessing or collecting it. (e) Inflation. For returns due in calendar years after 2014, adjust the $195 amount using the specified section 1(f)(3) cost-of-living formula, substituting calendar year 2013 for 2016; if the result is not a $5 multiple, round down to the next $5.
In addition to the penalty imposed by section 7203 (relating to willful failure to file return, supply information, or pay tax), if any partnership* required to file a return under section 6031, or a partnership adjustment tracking report under section 6226(b)(4)(A), for any taxable year*—
fails to file such return, or such report, at the time prescribed therefor (determined with regard to any extension of time for filing), or
files a return or a report which fails to show the information required under section 6031 or 6226(b)(4)(A), respectively,
such partnership shall be liable for a penalty determined under subsection (b) for each month (or fraction thereof) during which such failure continues (but not to exceed 12 months), unless it is shown that such failure is due to reasonable cause.
For purposes of subsection (a), the amount determined under this subsection for any month is the product of—
$195, multiplied by
the number of persons who were partners in the partnership during any part of the taxable year.
The penalty imposed by subsection (a) shall be assessed against the partnership.
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 subsection (a).
In the case of any return required to be filed in a calendar year beginning after 2014, the $195 dollar amount under subsection (b)(1) shall be increased by an amount equal to such dollar amount multiplied by the cost-of-living adjustment determined under section 1(f)(3) for the calendar year determined by substituting “calendar year 2013” for “calendar year 2016” in subparagraph (A)(ii) thereof.
If any amount adjusted under paragraph (1) is not a multiple of $5, such amount shall be rounded to the next lowest multiple of $5.
Source credit: (Added Pub. L. 95–600, title II, § 211(a), Nov. 6, 1978, 92 Stat. 2817; amended Pub. L. 110–142, § 8(a), (b), Dec. 20, 2007, 121 Stat. 1806; Pub. L. 110–458, title I, § 127(a), Dec. 23, 2008, 122 Stat. 5116; Pub. L. 111–92, § 16(a), Nov. 6, 2009, 123 Stat. 2996; Pub. L. 113–295, div. B, title II, § 208(d), Dec. 19, 2014, 128 Stat. 4073; Pub. L. 115–97, title I, § 11002(d)(1)(NN), Dec. 22, 2017, 131 Stat. 2061; Pub. L. 115–141, div. U, title II, § 206(n)(2), title IV, § 401(a)(299)(D), (313), Mar. 23, 2018, 132 Stat. 1182, 1198, 1199.)
- 1978Enacted · Pub. L. 95-600 · 92 Stat. 2817
- 2007Amended · Pub. L. 110-142 · 121 Stat. 1806
- 2008Amended · Pub. L. 110-458 · 122 Stat. 5116
- 2009Amended · Pub. L. 111-92 · 123 Stat. 2996
- 2014Amended · Pub. L. 113-295 · 128 Stat. 4073
- 2017Amended · Pub. L. 115-97 · 131 Stat. 2061
- 2018Amended · Pub. L. 115-141 · 132 Stat. 1182, 1198, 1199
A history note hasn’t been published yet. The record shows enactment by Pub. L. 95-600 on 1978-11-06.
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