26 U.S.C. § 6699 — Failure to file S corporation return
submitted 19 years ago by Pub. L. 110-142 to r/title-26-INTERNAL-REVENUE-CODE · 316 words · no verdicts yet
An S corporation that files its required return 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 shareholders, subject to inflation adjustment.
(a) General rule. In addition to section 7203’s penalty, an S corporation* required to file under section 6037 owes the subsection (b) penalty for each month or part of a month, up to 12 months, if it files late or 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 shareholders* during any part of the taxable year*. (c) Assessment. Assess the penalty against the S corporation*. (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 $195 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 S corporation* required to file a return under section 6037 for any taxable year*—
fails to file such return at the time prescribed therefor (determined with regard to any extension of time for filing), or
files a return which fails to show the information required under section 6037,
such S corporation* 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 shareholders* in the S corporation during any part of the taxable year.
The penalty imposed by subsection (a) shall be assessed against the S corporation.
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. 110–142, § 9(a), Dec. 20, 2007, 121 Stat. 1807; amended Pub. L. 110–458, title I, § 128(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(e), Dec. 19, 2014, 128 Stat. 4073; Pub. L. 115–97, title I, § 11002(d)(1)(OO), Dec. 22, 2017, 131 Stat. 2061; Pub. L. 115–141, div. U, title IV, § 401(a)(299)(E), Mar. 23, 2018, 132 Stat. 1198.)
- 2007Enacted · Pub. L. 110-142 · 121 Stat. 1807
- 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. 1198
A history note hasn’t been published yet. The record shows enactment by Pub. L. 110-142 on 2007-12-20.
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