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26 U.S.C. § 6726 — Failure to comply with information reporting requirements relating to qualified opportunity funds and qualified rural opportunity funds

submitted 1 year ago by Pub. L. 119-21 to r/title-26-INTERNAL-REVENUE-CODE · 386 words · no verdicts yet

in plain englishAI-generated · not legal advice

A person who fails to file a complete and correct qualified-opportunity-fund return owes $500 per day, subject to caps. The caps and daily amount increase for intentional disregard, large funds, and inflation under the section’s formulas.

(a) A person required to file a section 6039K return who does not file a complete and correct return on time and in the required way must pay $500 for each day the failure continues.

(b) (1) The maximum for one return is $10,000. (2) If the fund’s gross assets on the last day of the taxable year exceed $10,000,000, the maximum is $50,000 instead.

(c) If the failure is intentional disregard, apply (a) using $2,500 instead of $500, (b)(1) using $50,000 instead of $10,000, and (b)(2) using $250,000 instead of $50,000.

(d) (1) For a return due in a calendar year after 2025, increase each dollar amount in (a), (b), and (c) by that amount multiplied by the cost-of-living adjustment under section 1(f)(3), calculated using calendar year 2024 instead of calendar year 2016 in section 1(f)(3)(A)(ii). (2) Round the adjusted daily amounts of $500 and $2,500 down to the next multiple of $10; round the adjusted $10,000,000 asset threshold down to the next multiple of $10,000; and round every other adjusted amount in (b) or (c) down to the next multiple of $1,000.

the actual law source: uscode.house.gov ↗public domain
(a) In general

If any person required to file a return under section 6039K fails to file a complete and correct return under such section in the time and in the manner prescribed therefor, such person shall pay a penalty of $500 for each day during which such failure continues.

(b) Limitation
(1) In general

The maximum penalty under this section on failures with respect to any 1 return shall not exceed $10,000.

(2) Large qualified opportunity funds

In the case of any failure described in subsection (a) with respect to a fund the gross assets of which (determined on the last day of the taxable year) are in excess of $10,000,000, paragraph (1) shall be applied by substituting “$50,000” for “$10,000”.

(c) Penalty in cases of intentional disregard

If a failure described in subsection (a) is due to intentional disregard, then—

(1)

subsection (a) shall be applied by substituting “$2,500” for “$500”,

(2)

subsection (b)(1) shall be applied by substituting “$50,000” for “$10,000”, and

(3)

subsection (b)(2) shall be applied by substituting “$250,000” for “$50,000”.

(d) Inflation adjustment
(1) In general

In the case of any failure relating to a return required to be filed in a calendar year beginning after 2025, each of the dollar amounts in subsections (a), (b), and (c) shall be increased by an amount equal to—

(A)

such dollar amount, multiplied by

(B)

the cost-of-living adjustment determined under section 1(f)(3) for the calendar year determined by substituting “calendar year 2024” for “calendar year 2016” in subparagraph (A)(ii) thereof.

(2) Rounding
(A) In general

If the $500 dollar amount in subsection (a) and (c)(1) or the $2,500 amount in subsection (c)(1), after being increased under paragraph (1), is not a multiple of $10, such dollar amount shall be rounded to the next lowest multiple of $10.

(B) Asset threshold

If the $10,000,000 dollar amount in subsection (b)(2), after being increased under paragraph (1), is not a multiple of $10,000, such dollar amount shall be rounded to the next lowest multiple of $10,000.

(C) Other dollar amounts

If any dollar amount in subsection (b) or (c) (other than any amount to which subparagraph (A) or (B) applies), after being increased under paragraph (1), is not a multiple of $1,000, such dollar amount shall be rounded to the next lowest multiple of $1,000.

Source credit: (Added Pub. L. 119–21, title VII, § 70421(d)(2)(A), July 4, 2025, 139 Stat. 230.)

history & why it existsrecord from the source credit
  • 2025Enacted · Pub. L. 119-21 · 139 Stat. 230

A history note hasn’t been published yet. The record shows enactment by Pub. L. 119-21 on 2025-07-04.

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