26 U.S.C. § 9707 — Failure to pay premium
submitted 34 years ago by Pub. L. 102-486 to r/title-26-INTERNAL-REVENUE-CODE · 450 words · no verdicts yet
A person who fails to pay a required Combined Fund premium or specified mining-law contribution owes a daily penalty. The section defines the penalty period and exceptions for lack of knowledge, reasonable cause, timely correction, or excessive penalties.
(a)(1) A penalty is imposed when an assigned operator fails to pay a section 9704 premium for an eligible beneficiary*.
(2) A penalty is also imposed when a person fails to make a required section 402(h)(5)(B)(ii) mining-law contribution to a covered plan. Each required monthly contribution for an individual’s hours is treated as a section 9704 premium for an eligible beneficiary.
(b) The penalty is $100 per day during the noncompliance period for each failure concerning an eligible beneficiary.
(c) “Noncompliance period” means the period beginning on the premium or installment’s due date and ending when it is paid.
(d)(1) No penalty applies for a period if the Treasury Secretary* is satisfied that no responsible person knew, or would have known using reasonable diligence, that the failure existed.
(2) No penalty applies if the failure had reasonable cause and was not willful neglect and was corrected within 30 days after the first responsible person knew, or would have known using reasonable diligence, that it existed.
(3) For a failure with reasonable cause and no willful neglect, the Secretary may waive all or part of the penalty if, in the Secretary’s sole discretion, the penalty would be excessive compared with the failure.
(e) The person failing to meet section 9704’s requirements owes the penalty.
(f) For this title, this penalty is treated like the tax imposed by section 4980B.
There is hereby imposed a penalty on the failure of any assigned operator to pay any premium required to be paid under section 9704 with respect to any eligible beneficiary*.
There is hereby imposed a penalty on the failure of any person to make a contribution required under section 402(h)(5)(B)(ii) of the Surface Mining Control and Reclamation Act of 1977 to a plan referred to in section 402(h)(2)(C) of such Act. For purposes of applying this section, each such required monthly contribution for the hours worked of any individual shall be treated as if it were a premium required to be paid under section 9704 with respect to an eligible beneficiary.
The amount of the penalty imposed by subsection (a) on any failure with respect to any eligible beneficiary shall be $100 per day in the noncompliance period with respect to any such failure.
For purposes of this section, the term “noncompliance period” means, with respect to any failure to pay any premium or installment thereof, the period—
beginning on the due date for such premium or installment, and
ending on the date of payment of such premium or installment.
No penalty shall be imposed by subsection (a) on any failure during any period for which it is established to the satisfaction of the Secretary of the Treasury* that none of the persons responsible for such failure knew, or exercising reasonable diligence would have known, that such failure existed.
No penalty shall be imposed by subsection (a) on any failure if—
such failure was due to reasonable cause and not to willful neglect, and
such failure is corrected during the 30-day period beginning on the 1st date that any of the persons responsible for such failure knew, or exercising reasonable diligence would have known, that such failure existed.
In the case of a failure that is due to reasonable cause and not to willful neglect, the Secretary* of the Treasury may waive all or part of the penalty imposed by subsection (a) for failures to the extent that the Secretary determines, in his sole discretion, that the payment of such penalty would be excessive relative to the failure involved.
The person failing to meet the requirements of section 9704 shall be liable for the penalty imposed by subsection (a).
For purposes of this title, the penalty imposed by this section shall be treated in the same manner as the tax imposed by section 4980B.
Source credit: (Added Pub. L. 102–486, title XIX, § 19143(a), Oct. 24, 1992, 106 Stat. 3050; amended Pub. L. 104–188, title I, § 1704(t)(65), Aug. 20, 1996, 110 Stat. 1890; Pub. L. 109–432, div. C, title II, § 213(b)(1), Dec. 20, 2006, 120 Stat. 3027.)
- 1992Enacted · Pub. L. 102-486 · 106 Stat. 3050
- 1996Amended · Pub. L. 104-188 · 110 Stat. 1890
- 2006Amended · Pub. L. 109-432 · 120 Stat. 3027
A history note hasn’t been published yet. The record shows enactment by Pub. L. 102-486 on 1992-10-24.
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