-CITE- 26 USC CHAPTER 68 - ADDITIONS TO THE TAX, ADDITIONAL AMOUNTS, AND ASSESSABLE PENALTIES 01/02/2006 -EXPCITE- TITLE 26 - INTERNAL REVENUE CODE Subtitle F - Procedure and Administration CHAPTER 68 - ADDITIONS TO THE TAX, ADDITIONAL AMOUNTS, AND ASSESSABLE PENALTIES -HEAD- CHAPTER 68 - ADDITIONS TO THE TAX, ADDITIONAL AMOUNTS, AND ASSESSABLE PENALTIES -MISC1- Subchapter Sec.(!1) A. Additions to the tax and additional amounts 6651 B. Assessable penalties 6671 C. Procedural requirements 6751 AMENDMENTS 1998 - Pub. L. 105-206, title III, Sec. 3306(b), July 22, 1998, 112 Stat. 744, added item for subchapter C. -FOOTNOTE- (!1) Section numbers editorially supplied. -End- -CITE- 26 USC Subchapter A - Additions to the Tax and Additional Amounts 01/02/2006 -EXPCITE- TITLE 26 - INTERNAL REVENUE CODE Subtitle F - Procedure and Administration CHAPTER 68 - ADDITIONS TO THE TAX, ADDITIONAL AMOUNTS, AND ASSESSABLE PENALTIES Subchapter A - Additions to the Tax and Additional Amounts -HEAD- SUBCHAPTER A - ADDITIONS TO THE TAX AND ADDITIONAL AMOUNTS -MISC1- Part I. General provisions. II. Accuracy-related and fraud penalties. III. Applicable rules. AMENDMENTS 1989 - Pub. L. 101-239, title VII, Sec. 7721(c)(13), Dec. 19, 1989, 103 Stat. 2400, added part analysis consisting of parts I to III. -End- -CITE- 26 USC PART I - GENERAL PROVISIONS 01/02/2006 -EXPCITE- TITLE 26 - INTERNAL REVENUE CODE Subtitle F - Procedure and Administration CHAPTER 68 - ADDITIONS TO THE TAX, ADDITIONAL AMOUNTS, AND ASSESSABLE PENALTIES Subchapter A - Additions to the Tax and Additional Amounts PART I - GENERAL PROVISIONS -HEAD- PART I - GENERAL PROVISIONS -MISC1- Sec. 6651. Failure to file tax return or pay tax.(!1) 6652. Failure to file certain information returns, registration statements, etc. 6653. Failure to pay stamp tax. 6654. Failure by individual to pay estimated income tax. 6655. Failure by corporation to pay estimated income tax. 6656. Failure to make deposit of taxes. 6657. Bad checks. 6658. Coordination with title 11. [6659 to 6661. Repealed.] AMENDMENTS 1996 - Pub. L. 104-188, title I, Sec. 1704(t)(19), Aug. 20, 1996, 110 Stat. 1888, struck out item 6662 "Applicable rules". 1989 - Pub. L. 101-239, title VII, Secs. 7721(c)(13), (14), 7742(b), Dec. 19, 1989, 103 Stat. 2400, 2405, added part heading, substituted "Failure to pay stamp tax" for "Additions to tax for negligence and fraud" in item 6653, substituted "of taxes" for "of taxes or over-statement of deposits" in item 6656, and struck out items 6659 "Addition to tax in the case of valuation overstatements for purposes of the income tax", 6659A "Addition to tax in case of overstatements of pension liabilities", 6660 "Addition to tax in the case of valuation understatement for purposes of estate or gift taxes", and 6661 "Substantial understatement of liability". 1986 - Pub. L. 99-514, title XI, Sec. 1138(b), title XV, Sec. 1503(d)(2), Oct. 22, 1986, 100 Stat. 2486, 2743, substituted "Additions to tax for negligence and fraud" for "Failure to pay tax" in item 6653 and added item 6659A. 1984 - Pub. L. 98-369, div. A, title I, Sec. 155(c)(2)(B), July 18, 1984, 98 Stat. 695, added item 6660. 1982 - Pub. L. 97-248, title III, Sec. 323(b), Sept. 3, 1982, 96 Stat. 615, added item 6661 and redesignated former item 6660 as 6662. See Codification note set out under section 6662 of this title. 1981 - Pub. L. 97-34, title VII, Secs. 722(a)(2), 724(b)(2), Aug. 13, 1981, 95 Stat. 342, 345, inserted "or overstatement of deposits" in item 6656, added item 6659, and redesignated item 6659 as 6660. 1980 - Pub. L. 96-589, Sec. 6(e)(2), Dec. 24, 1980, 94 Stat. 3408, added item 6658. 1979 - Pub. L. 96-167, Sec. 6(b), Dec. 29, 1979, 93 Stat. 1276, struck out item 6658 "Addition to tax in case of jeopardy". 1974 - Pub. L. 93-406, title II, Sec. 1031(b)(1)(B)(ii), Sept. 2, 1974, 88 Stat. 946, inserted ", registration statements, etc." in item 6652. 1969 - Pub. L. 91-172, title IX, Sec. 943(c)(5), 83 Stat. 729, inserted "or pay tax" in item 6651. -FOOTNOTE- (!1) So in original. Does not conform to section catchline. -End- -CITE- 26 USC Sec. 6651 01/02/2006 -EXPCITE- TITLE 26 - INTERNAL REVENUE CODE Subtitle F - Procedure and Administration CHAPTER 68 - ADDITIONS TO THE TAX, ADDITIONAL AMOUNTS, AND ASSESSABLE PENALTIES Subchapter A - Additions to the Tax and Additional Amounts PART I - GENERAL PROVISIONS -HEAD- Sec. 6651. Failure to file tax return or to pay tax -STATUTE- (a) Addition to the tax In case of failure - (1) to file any return required under authority of subchapter A of chapter 61 (other than part III thereof), subchapter A of chapter 51 (relating to distilled spirits, wines, and beer), or of subchapter A of chapter 52 (relating to tobacco, cigars, cigarettes, and cigarette papers and tubes), or of subchapter A of chapter 53 (relating to machine guns and certain other firearms), on the date prescribed therefor (determined with regard to any extension of time for filing), unless it is shown that such failure is due to reasonable cause and not due to willful neglect, there shall be added to the amount required to be shown as tax on such return 5 percent of the amount of such tax if the failure is for not more than 1 month, with an additional 5 percent for each additional month or fraction thereof during which such failure continues, not exceeding 25 percent in the aggregate; (2) to pay the amount shown on tax on any return specified in paragraph (1) on or before the date prescribed for payment of such tax (determined with regard to any extension of time for payment), unless it is shown that such failure is due to reasonable cause and not due to willful neglect, there shall be added to the amount shown as tax on such return 0.5 percent of the amount of such tax if the failure is for not more than 1 month, with an additional 0.5 percent for each additional month or fraction thereof during which such failure continues, not exceeding 25 percent in the aggregate; or (3) to pay any amount in respect of any tax required to be shown on a return specified in paragraph (1) which is not so shown (including an assessment made pursuant to section 6213(b)) within 21 calendar days from the date of notice and demand therefor (10 business days if the amount for which such notice and demand is made equals or exceeds $100,000), unless it is shown that such failure is due to reasonable cause and not due to willful neglect, there shall be added to the amount of tax stated in such notice and demand 0.5 percent of the amount of such tax if the failure is for not more than 1 month, with an additional 0.5 percent for each additional month or fraction thereof during which such failure continues, not exceeding 25 percent in the aggregate. In the case of a failure to file a return of tax imposed by chapter 1 within 60 days of the date prescribed for filing of such return (determined with regard to any extensions of time for filing), unless it is shown that such failure is due to reasonable cause and not due to willful neglect, the addition to tax under paragraph (1) shall not be less than the lesser of $100 or 100 percent of the amount required to be shown as tax on such return. (b) Penalty imposed on net amount due For purposes of - (1) subsection (a)(1), the amount of tax required to be shown on the return shall be reduced by the amount of any part of the tax which is paid on or before the date prescribed for payment of the tax and by the amount of any credit against the tax which may be claimed on the return, (2) subsection (a)(2), the amount of tax shown on the return shall, for purposes of computing the addition for any month, be reduced by the amount of any part of the tax which is paid on or before the beginning of such month and by the amount of any credit against the tax which may be claimed on the return, and (3) subsection (a)(3), the amount of tax stated in the notice and demand shall, for the purpose of computing the addition for any month, be reduced by the amount of any part of the tax which is paid before the beginning of such month. (c) Limitations and special rule (1) Additions under more than one paragraph With respect to any return, the amount of the addition under paragraph (1) of subsection (a) shall be reduced by the amount of the addition under paragraph (2) of subsection (a) for any month (or fraction thereof) to which an addition to tax applies under both paragraphs (1) and (2). In any case described in the last sentence of subsection (a), the amount of the addition under paragraph (1) of subsection (a) shall not be reduced under the preceding sentence below the amount provided in such last sentence. (2) Amounts of tax shown more than amount required to be shown If the amount required to be shown as tax on a return is less than the amount shown as tax on such return, subsections (a)(2) and (b)(2) shall be applied by substituting such lower amount. (d) Increase in penalty for failure to pay tax in certain cases (1) In general In the case of each month (or fraction thereof) beginning after the day described in paragraph (2) of this subsection, paragraphs (2) and (3) of subsection (a) shall be applied by substituting "1 percent" for "0.5 percent" each place it appears. (2) Description For purposes of paragraph (1), the day described in this paragraph is the earlier of - (A) the day 10 days after the date on which notice is given under section 6331(d), or (B) the day on which notice and demand for immediate payment is given under the last sentence of section 6331(a). (e) Exception for estimated tax This section shall not apply to any failure to pay any estimated tax required to be paid by section 6654 or 6655. (f) Increase in penalty for fraudulent failure to file If any failure to file any return is fraudulent, paragraph (1) of subsection (a) shall be applied - (1) by substituting "15 percent" for "5 percent" each place it appears, and (2) by substituting "75 percent" for "25 percent". (g) Treatment of returns prepared by Secretary under section 6020(b) In the case of any return made by the Secretary under section 6020(b) - (1) such return shall be disregarded for purposes of determining the amount of the addition under paragraph (1) of subsection (a), but (2) such return shall be treated as the return filed by the taxpayer for purposes of determining the amount of the addition under paragraphs (2) and (3) of subsection (a). (h) Limitation on penalty on individual's failure to pay for months during period of installment agreement In the case of an individual who files a return of tax on or before the due date for the return (including extensions), paragraphs (2) and (3) of subsection (a) shall each be applied by substituting "0.25" for "0.5" each place it appears for purposes of determining the addition to tax for any month during which an installment agreement under section 6159 is in effect for the payment of such tax. -SOURCE- (Aug. 16, 1954, ch. 736, 68A Stat. 821; Pub. L. 90-364, title I, Sec. 103(e)(4), June 28, 1968, 82 Stat. 264; Pub. L. 91-172, title IX, Sec. 943(a), Dec. 30, 1969, 83 Stat. 727; Pub. L. 92-9, Sec. 3(j)(1), Apr. 1, 1971, 85 Stat. 22; Pub. L. 94-455, title XIX, Sec. 1904(b)(10)(A)(v), Oct. 4, 1976, 90 Stat. 1817; Pub. L. 97-248, title III, Sec. 318(a), (b), Sept. 3, 1982, 96 Stat. 610; Pub. L. 98-369, div. A, title IV, Sec. 412(b)(8), July 18, 1984, 98 Stat. 792; Pub. L. 99-514, title XV, Sec. 1502(a), (b), Oct. 22, 1986, 100 Stat. 2741; Pub. L. 100-203, title X, Sec. 10301(b)(6), Dec. 22, 1987, 101 Stat. 1330-429; Pub. L. 101-239, title VII, Sec. 7741(a), Dec. 19, 1989, 103 Stat. 2404; Pub. L. 104-168, title III, Sec. 303(b)(2), title XIII, Sec. 1301(a), July 30, 1996, 110 Stat. 1458, 1475; Pub. L. 105-206, title III, Sec. 3303(a), July 22, 1998, 112 Stat. 742.) -MISC1- AMENDMENTS 1998 - Subsec. (h). Pub. L. 105-206 added subsec. (h). 1996 - Subsec. (a)(3). Pub. L. 104-168, Sec. 303(b)(2), substituted "21 calendar days from the date of notice and demand therefor (10 business days if the amount for which such notice and demand is made equals or exceeds $100,000)" for "10 days of the date of the notice and demand therefor". Subsec. (g). Pub. L. 104-168, Sec. 1301(a), added subsec. (g). 1989 - Subsec. (f). Pub. L. 101-239 added subsec. (f). 1987 - Subsec. (e). Pub. L. 100-203 substituted "section 6654 or 6655" for "section 6154 or 6654". 1986 - Subsec. (c)(1). Pub. L. 99-514, Sec. 1502(b), amended par. (1) generally, striking out the designation "(A)" before "With respect to", inserting "(or fraction thereof)", and striking out subpar. (B) which read as follows: "With respect to any return, the maximum amount of the addition permitted under paragraph (3) of subsection (a) shall be reduced by the amount of the addition under paragraph (1) of subsection (a) (determined without regard to the last sentence of such subsection) which is attributable to the tax for which the notice and demand is made and which is not paid within 10 days of notice and demand." Subsecs. (d), (e). Pub. L. 99-514, Sec. 1502(a), added subsec. (d) and redesignated former subsec. (d) as (e). 1984 - Subsec. (d). Pub. L. 98-369 in amending subsec. (d) generally, substituted in heading "estimated tax" for "declarations of estimated tax", struck out provisions making section inapplicable to any failure to file a declaration of estimated tax required by section 6015 or to any failure to pay any estimated tax required to be paid by section 6153, and made section inapplicable to any failure to pay any estimated tax required to be paid by section 6654. 1982 - Subsec. (a). Pub. L. 97-248, Sec. 318(a), inserted provision that, in the case of a failure to file a return of tax imposed by chapter 1 within 60 days of the date prescribed for filing of such return (determined with regard to any extensions of time for filing), unless it is shown that such failure is due to reasonable cause and not due to willful neglect, the addition to tax under par. (1) shall not be less than the lesser of $100 or 100 percent of the amount required to be shown as tax on such return. Subsec. (c)(1)(A). Pub. L. 97-248, Sec. 318(b)(1), inserted provision that in any case described in last sentence of subsec. (a), the amount of the addition under par. (1) of subsec. (a) shall not be reduced under first sentence of this subpar. below the amount provided in such last sentence. Subsec. (c)(1)(B). Pub. L. 97-248, Sec. 318(b)(2), inserted "(determined without regard to the last sentence of such subsection)" after "paragraph (1) of subsection (a)". 1976 - Subsec. (e). Pub. L. 94-455 struck out subsec. (e) which related to certain interest equalization tax returns. 1971 - Subsec. (e). Pub. L. 92-9 added subsec. (e). 1969 - Subsec. (a). Pub. L. 91-172 designated existing provisions as par. (1) and added pars. (2) and (3). Subsec. (b). Pub. L. 91-172 designated existing provisions as par. (1) and added pars. (2) and (3). Subsecs. (c), (d). Pub. L. 91-172 added subsec. (c), redesignated former subsec. (c) as (d) and struck out reference to section 6016 of this title and provided that this section would not be applicable for failure to pay any estimated tax required under section 6153 or 6154 of this title. 1968 - Subsec. (c). Pub. L. 90-364 struck out reference to section 6016. EFFECTIVE DATE OF 1998 AMENDMENT Pub. L. 105-206, title III, Sec. 3303(b), July 22, 1998, 112 Stat. 742, provided that: "The amendment made by this section [amending this section] shall apply for purposes of determining additions to the tax for months beginning after December 31, 1999." EFFECTIVE DATE OF 1996 AMENDMENT Amendment by section 303(b)(2) of Pub. L. 104-168 applicable in case of any notice and demand given after Dec. 31, 1996, see section 303(c) of Pub. L. 104-168, set out as a note under section 6601 of this title. Section 1301(b) of Pub. L. 104-168 provided that: "The amendment made by subsection (a) [amending this section] shall apply in the case of any return the due date for which (determined without regard to extensions) is after the date of the enactment of this Act [July 30, 1996]." EFFECTIVE DATE OF 1989 AMENDMENT Section 7741(b) of Pub. L. 101-239 provided that: "The amendment made by subsection (a) [amending this section] shall apply in the case of failures to file returns the due date for which (determined without regard to extensions) is after December 31, 1989." EFFECTIVE DATE OF 1987 AMENDMENT Amendment by Pub. L. 100-203 applicable to taxable years beginning after Dec. 31, 1987, see section 10301(c) of Pub. L. 100- 203, set out as a note under section 585 of this title. EFFECTIVE DATE OF 1986 AMENDMENT Section 1502(c) of Pub. L. 99-514 provided that: "(1) Subsection (a). - The amendments made by subsection (a) [amending this section] shall apply - "(A) to failures to pay which begin after December 31, 1986, and "(B) to failures to pay which begin on or before December 31, 1986, if after December 31, 1986 - "(i) notice (or renotice) under section 6331(d) of the Internal Revenue Code of 1954 [now 1986] is given with respect to such failure, or "(ii) notice and demand for immediate payment of the underpayment is made under the last sentence of section 6331(a) of such Code. In the case of a failure to pay described in subparagraph (B), paragraph (2) of section 6651(d) of such Code (as added by subsection (a)) shall be applied by taking into account the first notice (or renotice) after December 31, 1986. "(2) Subsection (b). - The amendment made by subsection (b) [amending this section] shall apply to amounts assessed after December 31, 1986, with respect to failures to pay which begin before, on, or after such date." EFFECTIVE DATE OF 1984 AMENDMENT Amendment by Pub. L. 98-369 applicable with respect to taxable years beginning after Dec. 31, 1984, see section 414(a)(1) of Pub. L. 98-369, set out as a note under section 6654 of this title. EFFECTIVE DATE OF 1982 AMENDMENT Section 318(c) of Pub. L. 97-248 provided that: "The amendments made by this section [amending this section] shall apply to returns the due date for filing of which (including extensions) is after December 31, 1982." EFFECTIVE DATE OF 1971 AMENDMENT Section 3(j)(3) of Pub. L. 92-9 provided that: "The amendments made by this subsection [amending this section and section 6680 of this title] shall apply with respect to returns required to be filed on or after the date of the enactment of this Act [Apr. 1, 1971]." EFFECTIVE DATE OF 1969 AMENDMENT Section 943(d) of Pub. L. 91-172 provided that: "The amendments made by subsections (a) [amending this section] and (c) [amending sections 3121, 5684, and 6653 of this title] shall apply with respect to returns the date prescribed by law (without regard to any extension of time) for filing of which is after December 31, 1969, and with respect to notices and demands for payment of tax made after December 31, 1969. The amendment made by subsection (b) [amending section 6656 of this title] shall apply with respect to deposits the time for making of which is after December 31, 1969." EFFECTIVE DATE OF 1968 AMENDMENT Amendment by Pub. L. 90-364 applicable with respect to taxable years beginning after Dec. 31, 1967, except as provided by section 104 of Pub. L. 90-364, see section 103(f) of Pub. L. 90-364, set out as a note under section 243 of this title. ILLEGAL TAX PROTESTER DESIGNATION Pub. L. 105-206, title III, Sec. 3707, July 22, 1998, 112 Stat. 778, provided that: "(a) Prohibition. - The officers and employees of the Internal Revenue Service - "(1) shall not designate taxpayers as illegal tax protesters (or any similar designation); and "(2) in the case of any such designation made on or before the date of the enactment of this Act [July 22, 1998] - "(A) shall remove such designation from the individual master file; and "(B) shall disregard any such designation not located in the individual master file. "(b) Designation of Nonfilers Allowed. - An officer or employee of the Internal Revenue Service may designate any appropriate taxpayer as a nonfiler, but shall remove such designation once the taxpayer has filed income tax returns for 2 consecutive taxable years and paid all taxes shown on such returns. "(c) Effective Date. - The provisions of this section shall take effect on the date of the enactment of this Act [July 22, 1998], except that the removal of any designation under subsection (a)(2)(A) shall not be required to begin before January 1, 1999." -End- -CITE- 26 USC Sec. 6652 01/02/2006 -EXPCITE- TITLE 26 - INTERNAL REVENUE CODE Subtitle F - Procedure and Administration CHAPTER 68 - ADDITIONS TO THE TAX, ADDITIONAL AMOUNTS, AND ASSESSABLE PENALTIES Subchapter A - Additions to the Tax and Additional Amounts PART I - GENERAL PROVISIONS -HEAD- Sec. 6652. Failure to file certain information returns, registration statements, etc. -STATUTE- (a) Returns with respect to certain payments aggregating less than $10 In the case of each failure to file a statement of a payment to another person required under the authority of - (1) section 6042(a)(2) (relating to payments of dividends aggregating less than $10), or (2) section 6044(a)(2) (relating to payments of patronage dividends aggregating less than $10), on the date prescribed therefor (determined with regard to any extension of time for filing), unless it is shown that such failure is due to reasonable cause and not to willful neglect, there shall be paid (upon notice and demand by the Secretary and in the same manner as tax) by the person failing to so file the statement, $1 for each such statement not so filed, but the total amount imposed on the delinquent person for all such failures during the calendar year shall not exceed $1,000. (b) Failure to report tips In the case of failure by an employee to report to his employer on the date and in the manner prescribed therefor any amount of tips required to be so reported by section 6053(a) which are wages (as defined in section 3121(a)) or which are compensation (as defined in section 3231(e)), unless it is shown that such failure is due to reasonable cause and not due to willful neglect, there shall be paid by the employee, in addition to the tax imposed by section 3101 or section 3201 (as the case may be) with respect to the amount of tips which he so failed to report, an amount equal to 50 percent of such tax. (c) Returns by exempt organizations and by certain trusts (1) Annual returns under section 6033 or 6012(a)(6) (A) Penalty on organization In the case of - (i) a failure to file a return required under section 6033 (relating to returns by exempt organizations) or section 6012(a)(6) (relating to returns by political organizations) on the date and in the manner prescribed therefor (determined with regard to any extension of time for filing), or (ii) a failure to include any of the information required to be shown on a return filed under section 6033 or section 6012(a)(6) or to show the correct information, there shall be paid by the exempt organization $20 for each day during which such failure continues. The maximum penalty under this subparagraph on failures with respect to any 1 return shall not exceed the lesser of $10,000 or 5 percent of the gross receipts of the organization for the year. In the case of an organization having gross receipts exceeding $1,000,000 for any year, with respect to the return required under section 6033 or section 6012(a)(6) for such year, the first sentence of this subparagraph shall be applied by substituting "$100" for "$20" and, in lieu of applying the second sentence of this subparagraph, the maximum penalty under this subparagraph shall not exceed $50,000. (B) Managers (i) In general The Secretary may make a written demand on any organization subject to penalty under subparagraph (A) specifying therein a reasonable future date by which the return shall be filed (or the information furnished) for purposes of this subparagraph. (ii) Failure to comply with demand If any person fails to comply with any demand under clause (i) on or before the date specified in such demand, there shall be paid by the person failing to so comply $10 for each day after the expiration of the time specified in such demand during which such failure continues. The maximum penalty imposed under this subparagraph on all persons for failures with respect to any 1 return shall not exceed $5,000. (C) Public inspection of annual returns and reports In the case of a failure to comply with the requirements of section 6104(d) with respect to any annual return on the date and in the manner prescribed therefor (determined with regard to any extension of time for filing) or report required under section 527(j), there shall be paid by the person failing to meet such requirements $20 for each day during which such failure continues. The maximum penalty imposed under this subparagraph on all persons for failures with respect to any 1 return or report shall not exceed $10,000. (D) Public inspection of applications for exemption and notice of status In the case of a failure to comply with the requirements of section 6104(d) with respect to any exempt status application materials (as defined in such section) or notice materials (as defined in such section) on the date and in the manner prescribed therefor, there shall be paid by the person failing to meet such requirements $20 for each day during which such failure continues. (2) Returns under section 6034 or 6043(b) (A) Penalty on organization or trust In the case of a failure to file a return required under section 6034 (relating to returns by certain trusts) or section 6043(b) (relating to terminations, etc., of exempt organizations), on the date and in the manner prescribed therefor (determined with regard to any extension of time for filing), there shall be paid by the exempt organization or trust failing so to file $10 for each day during which such failure continues, but the total amount imposed under this subparagraph on any organization or trust for failure to file any 1 return shall not exceed $5,000. (B) Managers The Secretary may make written demand on an organization or trust failing to file under subparagraph (A) specifying therein a reasonable future date by which such filing shall be made for purposes of this subparagraph. If such filing is not made on or before such date, there shall be paid by the person failing so to file $10 for each day after the expiration of the time specified in the written demand during which such failure continues, but the total amount imposed under this subparagraph on all persons for failure to file any 1 return shall not exceed $5,000. (3) Reasonable cause exception No penalty shall be imposed under this subsection with respect to any failure if it is shown that such failure is due to reasonable cause. (4) Other special rules (A) Treatment as tax Any penalty imposed under this subsection shall be paid on notice and demand of the Secretary and in the same manner as tax. (B) Joint and several liability If more than 1 person is liable under this subsection for any penalty with respect to any failure, all such persons shall be jointly and severally liable with respect to such failure. (C) Person For purposes of this subsection, the term "person" means any officer, director, trustee, employee, or other individual who is under a duty to perform the act in respect of which the violation occurs. (d) Annual registration and other notification by pension plan (1) Registration In the case of any failure to file a registration statement required under section 6057(a) (relating to annual registration of certain plans) which includes all participants required to be included in such statement, on the date prescribed therefor (determined without regard to any extension of time for filing), unless it is shown that such failure is due to reasonable cause, there shall be paid (on notice and demand by the Secretary and in the same manner as tax) by the person failing so to file, an amount equal to $1 for each participant with respect to whom there is a failure to file, multiplied by the number of days during which such failure continues, but the total amount imposed under this paragraph on any person for any failure to file with respect to any plan year shall not exceed $5,000. (2) Notification of change of status In the case of failure to file a notification required under section 6057(b) (relating to notification of change of status) on the date prescribed therefor (determined without regard to any extension of time for filing), unless it is shown that such failure is due to reasonable cause, there shall be paid (on notice and demand by the Secretary and in the same manner as tax) by the person failing so to file, $1 for each day during which such failure continues, but the total amounts imposed under this paragraph on any person for failure to file any notification shall not exceed $1,000. (e) Information required in connection with certain plans of deferred compensation, etc. In the case of failure to file a return or statement required under section 6058 (relating to information required in connection with certain plans of deferred compensation), 6047 (relating to information relating to certain trusts and annuity and bond purchase plans), or 6039D (relating to returns and records with respect to certain fringe benefit plans) on the date and in the manner prescribed therefor (determined with regard to any extension of time for filing), unless it is shown that such failure is due to reasonable cause, there shall be paid (on notice and demand by the Secretary and in the same manner as tax) by the person failing so to file, $25 for each day during which such failure continues, but the total amount imposed under this subsection on any person for failure to file any return shall not exceed $15,000. This subsection shall not apply to any return or statement which is an information return described in section 6724(d)(1)(C)(ii) or a payee statement described in section 6724(d)(2)(Y). (f) Returns required under section 6039C (1) In general In the case of each failure to make a return required by section 6039C which contains the information required by such section on the date prescribed therefor (determined with regard to any extension of time for filing), unless it is shown that such failure is due to reasonable cause and not to willful neglect, the amount determined under paragraph (2) shall be paid (upon notice and demand by the Secretary and in the same manner as tax) by the person failing to make such return. (2) Amount of penalty For purposes of paragraph (1), the amount determined under this paragraph with respect to any failure shall be $25 for each day during which such failure continues. (3) Limitation The amount determined under paragraph (2) with respect to any person for failing to meet the requirements of section 6039C for any calendar year shall not exceed the lesser of - (A) $25,000, or (B) 5 percent of the aggregate of the fair market value of the United States real property interests owned by such person at any time during such year. For purposes of the preceding sentence, fair market value shall be determined as of the end of the calendar year (or, in the case of any property disposed of during the calendar year, as of the date of such disposition). (g) Information required in connection with deductible employee contributions In the case of failure to make a report required by section 219(f)(4) which contains the information required by such section on the date prescribed therefor (determined with regard to any extension of time for filing), there shall be paid (on notice and demand by the Secretary and in the same manner as tax) by the person failing so to file, an amount equal to $25 for each participant with respect to whom there was a failure to file such information, multiplied by the number of years during which such failure continues, but the total amount imposed under this subsection on any person for failure to file shall not exceed $10,000. No penalty shall be imposed under this subsection on any failure which is shown to be due to reasonable cause and not willful neglect. (h) Failure to give notice to recipients of certain pension, etc., distributions In the case of each failure to provide notice as required by section 3405(e)(10)(B), at the time prescribed therefor, unless it is shown that such failure is due to reasonable cause and not to willful neglect, there shall be paid, on notice and demand of the Secretary and in the same manner as tax, by the person failing to provide such notice, an amount equal to $10 for each such failure, but the total amount imposed on such person for all such failures during any calendar year shall not exceed $5,000. (i) Failure to give written explanation to recipients of certain qualifying rollover distributions In the case of each failure to provide a written explanation as required by section 402(f), at the time prescribed therefor, unless it is shown that such failure is due to reasonable cause and not to willful neglect, there shall be paid, on notice and demand of the Secretary and in the same manner as tax, by the person failing to provide such written explanation, an amount equal to $100 for each such failure, but the total amount imposed on such person for all such failures during any calendar year shall not exceed $50,000. (j) Failure to file certification with respect to certain residential rental projects In the case of each failure to provide a certification as required by section 142(d)(7) at the time prescribed therefor, unless it is shown that such failure is due to reasonable cause and not to willful neglect, there shall be paid, on notice and demand of the Secretary and in the same manner as tax, by the person failing to provide such certification, an amount equal to $100 for each such failure. (k) (!1) Failure to make reports required under section 1202 In the case of a failure to make a report required under section 1202(d)(1)(C) which contains the information required by such section on the date prescribed therefor (determined with regard to any extension of time for filing), there shall be paid (on notice and demand by the Secretary and in the same manner as tax) by the person failing to make such report, an amount equal to $50 for each report with respect to which there was such a failure. In the case of any failure due to negligence or intentional disregard, the preceding sentence shall be applied by substituting "$100" for "$50". In the case of a report covering periods in 2 or more years, the penalty determined under preceding provisions of this subsection shall be multiplied by the number of such years. No penalty shall be imposed under this subsection on any failure which is shown to be due to reasonable cause and not willful neglect. (l) Failure to file return with respect to certain corporate transactions In the case of any failure to make a return required under section 6043(c) containing the information required by such section on the date prescribed therefor (determined with regard to any extension of time for filing), unless it is shown that such failure is due to reasonable cause, there shall be paid (on notice and demand by the Secretary and in the same manner as tax) by the person failing to file such return, an amount equal to $500 for each day during which such failure continues, but the total amount imposed under this subsection with respect to any return shall not exceed $100,000. (m) Alcohol and tobacco taxes For penalties for failure to file certain information returns with respect to alcohol and tobacco taxes, see, generally, subtitle E. -SOURCE- (Aug. 16, 1954, ch. 736, 68A Stat. 821; Pub. L. 85-866, title I, Sec. 85, Sept. 2, 1958, 72 Stat. 1664; Pub. L. 87-834, Sec. 19(d), Oct. 16, 1962, 76 Stat. 1057; Pub. L. 88-272, title II, Sec. 221(b)(2), Feb. 26, 1964, 78 Stat. 74; Pub. L. 89-97, title III, Sec. 313(e)(2)(B), (3), July 30, 1965, 79 Stat. 385; Pub. L. 89- 212, Sec. 2(e), Sept. 29, 1965, 79 Stat. 859; Pub. L. 91-172, title I, Sec. 101(d)(4), Dec. 30, 1969, 83 Stat. 522; Pub. L. 93- 406, title II, Sec. 1031(b)(1)(A), (B)(i), Sept. 2, 1974, 88 Stat. 945, 946; Pub. L. 94-455, title XII, Sec. 1207(e)(3)(B), (C), title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1708, 1834; Pub. L. 96-167, Sec. 7(b)(1), Dec. 29, 1979, 93 Stat. 1277; Pub. L. 96- 223, title I, Sec. 101(d)(2)(A), Apr. 2, 1980, 94 Stat. 251; Pub. L. 96-499, title XI, Sec. 1123(b), Dec. 5, 1980, 94 Stat. 2689; Pub. L. 96-603, Sec. 1(d)(2), Dec. 28, 1980, 94 Stat. 3504; Pub. L. 97-34, title III, Sec. 311(f), title VII, Sec. 723(a)(1), (3), (4), Aug. 13, 1981, 95 Stat. 281, 343, 344; Pub. L. 97-248, title III, Secs. 309(b)(2), 315(a), (b), Sept. 3, 1982, 96 Stat. 595, 605, 606; Pub. L. 97-448, title II, Sec. 201(i)(2), Jan. 12, 1983, 96 Stat. 2395; Pub. L. 98-67, title I, Sec. 105(b)(1), Aug. 5, 1983, 97 Stat. 380; Pub. L. 98-369, div. A, title I, Secs. 145(b)(1), (2), 146(b)(1), (2), 148(b)(1), (2), 149(b)(1), 155(b)(2)(A), title IV, Sec. 491(d)(50), title V, Sec. 531(b)(4)(B), title VII, Sec. 714(j)(3), July 18, 1984, 98 Stat. 685, 686, 688, 689, 693, 852, 882, 963; Pub. L. 98-397, title II, Sec. 207(b), Aug. 23, 1984, 98 Stat. 1450; Pub. L. 98-611, Sec. 1(d)(2), Oct. 31, 1984, 98 Stat. 3177; Pub. L. 98-612, Sec. 1(b)(2), Oct. 31, 1984, 98 Stat. 3181; Pub. L. 99-514, title XI, Sec. 1151(b), title XIII, Sec. 1301(g), title XV, Sec. 1501(d)(1)(A), title XVII, Sec. 1702(b), title XVIII, Secs. 1810(f)(9), 1811(c)(2), Oct. 22, 1986, 100 Stat. 2502, 2656, 2740, 2774, 2828, 2833; Pub. L. 100-203, title X, Secs. 10502(d)(11), 10704(a), Dec. 22, 1987, 101 Stat. 1330-444, 1330- 461; Pub. L. 100-647, title I, Secs. 1011B(a)(10), 1017(b), 1018(u)(36), title III, Sec. 3021(a)(10), Nov. 10, 1988, 102 Stat. 3484, 3575, 3592, 3630; Pub. L. 101-140, title II, Sec. 203(a)(1), Nov. 8, 1989, 103 Stat. 830; Pub. L. 101-239, title VII, Secs. 7208(b)(2), 7841(d)(5), Dec. 19, 1989, 103 Stat. 2338, 2428; Pub. L. 102-318, title V, Sec. 522(b)(2)(F), July 3, 1992, 106 Stat. 314; Pub. L. 103-66, title XIII, Sec. 13113(c), Aug. 10, 1993, 107 Stat. 429; Pub. L. 104-168, title XIII, Secs. 1314(a), (b), July 30, 1996, 110 Stat. 1480; Pub. L. 104-188, title I, Secs. 1455(c), (d)(2), 1704(s), Aug. 20, 1996, 110 Stat. 1818, 1887; Pub. L. 105- 34, title XII, Sec. 1281(a), (b), title XVI, Sec. 1602(d)(2)(B), Aug. 5, 1997, 111 Stat. 1037, 1094; Pub. L. 105-277, div. J, title I, Sec. 1004(b)(2)(B), (C), Oct. 21, 1998, 112 Stat. 2681-890; Pub. L. 106-230, Secs. 1(c), 2(c), 3(c), July 1, 2000, 114 Stat. 479, 482, 483.) -COD- CODIFICATION Pub. L. 101-140, Sec. 203(a)(1), amended this section to read as if the amendments made by section 1151(b) of Pub. L. 99-514 (enacting subsec. (l)) had not been enacted. Subsequent to enactment by Pub. L. 99-514, subsec. (l) was amended by Pub. L. 100- 203, Pub. L. 100-647, and Pub. L. 101-239. See 1989, 1988, and 1987 Amendment notes below. -MISC1- AMENDMENTS 2000 - Subsec. (c)(1). Pub. L. 106-230, Sec. 3(c)(4), inserted "or 6012(a)(6)" after "section 6033" in heading. Subsec. (c)(1)(A). Pub. L. 106-230, Sec. 3(c)(3), inserted "or section 6012(a)(6)" after "section 6033" in last sentence. Subsec. (c)(1)(A)(i). Pub. L. 106-230, Sec. 3(c)(1), inserted "or section 6012(a)(6) (relating to returns by political organizations)" after "organizations)". Subsec. (c)(1)(A)(ii). Pub. L. 106-230, Sec. 3(c)(2), inserted "or section 6012(a)(6)" after "section 6033". Subsec. (c)(1)(C). Pub. L. 106-230, Sec. 2(c), in heading inserted "and reports" after "returns" and in text inserted "or report required under section 527(j)" after "filing)" and "or report" after "1 return". Subsec. (c)(1)(D). Pub. L. 106-230, Sec. 1(c), in heading inserted "and notice of status" after "exemption" and in text inserted "or notice materials (as defined in such section)" after "section)". 1998 - Subsec. (c)(1)(C). Pub. L. 105-277, Sec. 1004(b)(2)(B), substituted "section 6104(d) with respect to any annual return" for "subsection (d) or (e)(1) of section 6104 (relating to public inspection of annual returns)". Subsec. (c)(1)(D). Pub. L. 105-277, Sec. 1004(b)(2)(C), substituted "section 6104(d) with respect to any exempt status application materials (as defined in such section)" for "section 6104(e)(2) (relating to public inspection of applications for exemption)". 1997 - Subsec. (e). Pub. L. 105-34, Sec. 1602(d)(2)(B), substituted "section 6724(d)(2)(Y)" for "section 6724(d)(2)(X)". Subsec. (g). Pub. L. 105-34, Sec. 1281(a), inserted at end "No penalty shall be imposed under this subsection on any failure which is shown to be due to reasonable cause and not willful neglect." Subsec. (k). Pub. L. 105-34, Sec. 1281(b), inserted at end "No penalty shall be imposed under this subsection on any failure which is shown to be due to reasonable cause and not willful neglect." 1996 - Subsec. (c)(1)(A). Pub. L. 104-168 in concluding provisions, substituted "$20" for "$10" and "$10,000" for "$5,000" and inserted at end "In the case of an organization having gross receipts exceeding $1,000,000 for any year, with respect to the return required under section 6033 for such year, the first sentence of this subparagraph shall be applied by substituting '$100' for '$20' and, in lieu of applying the second sentence of this subparagraph, the maximum penalty under this subparagraph shall not exceed $50,000." Subsec. (c)(1)(C). Pub. L. 104-188, Sec. 1704(s)(1), substituted "$20" for "$10" and "$10,000" for "$5,000". Subsec. (c)(1)(D). Pub. L. 104-188, Sec. 1704(s)(2), substituted "$20" for "$10". Subsec. (e). Pub. L. 104-188, Sec. 1455(d)(2), inserted at end "This subsection shall not apply to any return or statement which is an information return described in section 6724(d)(1)(C)(ii) or a payee statement described in section 6724(d)(2)(X)." Subsec. (i). Pub. L. 104-188, Sec. 1455(c), substituted "$100" and "$50,000" for "the $10" and "$5,000", respectively. 1993 - Subsec. (k). Pub. L. 103-66, which directed amendment of section by adding subsec. (k) before the last subsection, was executed by adding subsec. (k) after subsec. (j) to reflect the probable intent of Congress. 1992 - Subsec. (h). Pub. L. 102-318 substituted "3405(e)(10)(B)" for "3405(d)(10)(B)". 1989 - Subsec. (k). Pub. L. 101-239, Sec. 7841(d)(5)(B), redesignated the subsec. (k), relating to alcohol and tobacco taxes, as (l). Pub. L. 101-239, Sec. 7841(d)(5)(A), redesignated the subsection relating to information with respect to includible employee benefits as (k), see Codification note above. Pub. L. 101-140 amended this section to read as if amendments by Pub. L. 99-514, Sec. 1151(b), had not been enacted, see Codification note above and 1986 Amendment note below. Subsec. (l). Pub. L. 101-239, Sec. 7208(b)(2), added subsec. (l) and redesignated former subsec. (l) as (m). Pub. L. 101-239, Sec. 7841(d)(5)(B), redesignated subsec. (k), relating to alcohol and tobacco taxes, as (l). Subsec. (m). Pub. L. 101-239, Sec. 7208(b)(2), redesignated subsec. (l) as (m). 1988 - Subsec. (j). Pub. L. 100-647, Sec. 1017(b), amended subsec. (j) as it existed prior to its repeal by Pub. L. 100-203, Sec. 10502(d)(11), by inserting "(and the corresponding provision of section 4041(d)(1))" after "section 4041(a)(1)", see 1987 Amendment note below. Subsec. (k)(2)(B). Pub. L. 100-647, Sec. 3021(a)(10), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: "the employer-provided benefit (within the meaning of section 89 without regard to subsection (g)(3) thereof) with respect to the employee to whom such failure relates." See Codification note above. Pub. L. 100-647, Sec. 1011B(a)(10), substituted "subsection (g)(3)(C)(i)" for "subsection (g)(3)". See Codification note above. Subsec. (k)(4). Pub. L. 100-647, Sec. 1018(u)(36), substituted "or part II of subchapter B of this chapter" for "or section 6678". See Codification note above. 1987 - Subsec. (c). Pub. L. 100-203, Sec. 10704(a), amended subsec. (c) generally, revising and restating as pars. (1) to (4) provisions of former pars. (1) to (3). Subsec. (j). Pub. L. 100-203, Sec. 10502(d)(11), struck out subsec. (j), as added by section 1702(b) of Pub. L. 99-514, which related to failure to give written notice to certain sellers of diesel fuel. Subsecs. (k), (l). Pub. L. 100-203, Sec. 10502(d)(11), redesignated subsec. (l), relating to information with respect to includible employee benefits, as (k), and directed the redesignation of a nonexistent subsec. (m) as (l). See Codification note above. 1986 - Subsec. (a). Pub. L. 99-514, Sec. 1501(d)(1)(A), redesignated subsec. (b) as (a), substituted "Returns with respect to certain payments aggregating less than $10" for "Other returns" in heading, and struck out former subsec. (a) which provided penalties for failure to file returns relating to information at source, payments of dividends, etc. and certain transfers of stock. Pub. L. 99-514, Sec. 1811(c)(2), inserted "(other than by subsection (d) of such section)" in par. (3)(A)(ii). Subsecs. (b) to (f). Pub. L. 99-514, Sec. 1501(d)(1)(A)(i), redesignated subsecs. (c) to (f) as (b) to (e), respectively. Former subsec. (b) redesignated (a). Subsec. (g). Pub. L. 99-514, Sec. 1501(d)(1)(A)(i), redesignated subsec. (h) as (g). Former subsec. (g) redesignated (f). Pub. L. 99-514, Sec. 1810(f)(9)(C), struck out "etc.," after "Returns" in heading. Subsec. (g)(1). Pub. L. 99-514, Sec. 1810(f)(9)(A), in amending par. (1) generally, struck out "(A)" after "In the case of each failure", and struck out "(B) to furnish a statement required by section 6039C(b)(3)," before "on the date required". Subsec. (g)(3). Pub. L. 99-514, Sec. 1810(f)(9)(B), in amending par. (3) generally, designated former subpar. (B) of par. (3) as the entire paragraph, struck out former subpar. (A) setting a limitation of $25,000 with respect to each subsection for failure to meet the requirements of subsection (a) or (b) of section 6039C, struck out former subpar. (B) heading "For failure to meet requirements of section 6039C(c)" and in text substituted "requirements of section 6039C" for "requirements of subsection (c) of section 6039C" and inserted "(A)" before "$25,000" and "(B)" before "5 percent". Subsecs. (h), (i). Pub. L. 99-514, Sec. 1501(d)(1)(A)(i), redesignated subsecs. (i) and (j) as (h) and (i), respectively. Former subsec. (h) redesignated (g). Subsec. (j). Pub. L. 99-514, Sec. 1702(b), added subsec. (j) relating to failure to give written notice to certain sellers of diesel fuel, and redesignated former subsec. (j), relating to alcohol and tobacco taxes, as (k). Pub. L. 99-514, Sec. 1301(g), added subsec. (j) relating to failure to file certification with respect to certain residential projects. Pub. L. 99-514, Sec. 1501(d)(1)(A)(i), redesignated subsec. (k), relating to alcohol and tobacco taxes, as (j). Former subsec. (j), relating to failure to give written explanation to recipients of certain qualifying rollover distributions, redesignated (i). Such subsec. (j), relating to alcohol and tobacco taxes, was subsequently redesignated as subsec. (k) by section 1301(g) of Pub. L. 99-514, and also by section 1702(b) of Pub. L. 99-514, both of which added a new subsec. (j), see above. Subsec. (k). Pub. L. 99-514, Sec. 1501(d)(1)(A)(i), redesignated subsec. (k), relating to alcohol and tobacco taxes, as (j). Subsequently, such subsec. (j) was redesignated as subsec. (k) by section 1301(g) of Pub. L. 99-514, and also by section 1702(b) of Pub. L. 99-514. Subsecs. (l), (m). Pub. L. 99-514, Sec. 1151(b), directed the redesignation of a nonexistent subsec. (l) as (m), and added a new subsec. (l) relating to information with respect to includible employee benefits. 1984 - Subsec. (a)(1)(B)(v). Pub. L. 98-369, Sec. 145(b)(1), added cl. (v). Subsec. (a)(1)(B)(vi). Pub. L. 98-369, Sec. 146(b)(1), added cl. (vi). Subsec. (a)(1)(B)(vii). Pub. L. 98-369, Sec. 148(b)(1), added cl. (vii). Subsec. (a)(1)(B)(viii). Pub. L. 98-369, Sec. 149(b)(1), added cl. (viii). Subsec. (a)(1)(B)(ix). Pub. L. 98-369, Sec. 155(b)(2)(A), added cl. (ix). Subsec. (a)(3)(A)(iii). Pub. L. 98-369, Sec. 148(b)(2), substituted ", 6050I, or 6050J" for "or 6050I". Pub. L. 98-369, Sec. 146(b)(2), substituted ", 6050H or 6050I" for "or section 6050H". Pub. L. 98-369, Sec. 145(b)(2), inserted "or section 6050H" after "section 6041A(b)". Subsec. (f). Pub. L. 98-611, Sec. 1(d)(2), and Pub. L. 98-612, Sec. 1(b)(2), made identical amendments, substituting "6039D (relating to returns and records with respect to certain fringe benefit plans)" for "125(h) (relating to information with respect to cafeteria plans)". Pub. L. 98-369, Sec. 531(b)(4)(B)(i), which directed the amendment of subsec. (f) by striking out "or 6047 (relating to information relating to certain trusts and annuity and bond purchase plans)" and inserting in lieu thereof ", 6047 (relating to information relating to certain trusts and annuity and bond purchase plans), or 125(h) (relating to information with respect to cafeteria plans)", was executed by substituting the quoted phrase for "or 6047 (relating to information relating to certain trusts and annuity plans)", as the probable intent of Congress. Pub. L. 98-369, Sec. 531(b)(4)(B)(ii), inserted "; etc." in heading. Pub. L. 98-369, Sec. 491(d)(50), struck out "and bond purchase" after "trusts and annuity". Subsec. (i). Pub. L. 98-369, Sec. 714(j)(3), added subsec. (i). Former subsec. (i), relating to alcohol and tobacco taxes, redesignated (j). Subsec. (j). Pub. L. 98-397, Sec. 207(b), added subsec. (j). Former subsec. (j), relating to alcohol and tobacco taxes, redesignated (k). Pub. L. 98-369, Sec. 714(j)(3), redesignated former subsec. (i), relating to alcohol and tobacco taxes, as (j). Subsec. (k). Pub. L. 98-397, Sec. 207(b), redesignated subsec. (j), relating to alcohol and tobacco taxes, as (k). 1983 - Subsec. (a)(1)(A). Pub. L. 98-67, Sec. 105(b)(1)(B), struck out cls. (ii), (iii), and (iv), redesignated cls. (v) and (vi) as (ii) and (iii), respectively, and in cl. (iii), as so redesignated, struck out "6042(e), 6044(f), 6049(e), or" before "6051(d)". Subsec. (a)(2), (3). Pub. L. 98-67, Sec. 105(b)(1)(A), (C), added par. (2), redesignated former par. (2) as (3), and in par. (3), as so redesignated, inserted references to paragraph (2) in provisions preceding subpar. (A) and in provisions of subpar. (A) preceding cl. (i). Subsec. (a). Pub. L. 97-448, which directed that "or" be struck out at end of subpar. (F) of par. (1), "or" be inserted at end of par. (2), a new par. (3) be added, and that in provision following par. (3), "paragraph (2) or (3)" be substituted for "paragraph (2)", was executed by striking out "or" at end of subpar. (A)(vi) of par. (1), inserting "or" at end of subpar. (B)(iv) of par. (1), redesignating par. (3) as subpar. (C) and adding such subpar. (C), to par. (1), and in provision following subpar. (C) substituting "subparagraph (B) or (C)" for "subparagraph (B)", to reflect the probable intent of Congress and the intervening amendment of subsec. (a) by section 315(a) of Pub. L. 97-248 which redesignated former par. (1) as subpar. (A), former subpars. (A) to (F) as cls. (i) to (vi), and former par. (2) as subpar. (B), and in provision following subpar. (B) as so redesignated, substituted "subparagraph (B)" for "paragraph (2)". 1982 - Subsec. (a). Pub. L. 97-248, Sec. 315(a), designated existing provisions as par. (1) with a heading "In general", redesignated former par. (1) as subpar. (A), in subpar. (A) as so redesignated struck out "aggregate" before "amount", redesignated former subpars. (A) through (F) as cls. (i) through (vi), respectively, in cls. (ii) and (iii) as so redesignated struck out "aggregating $10 or more" after "dividends", in cl. (iv) as so redesignated substituted "(a)" for "(a)(1)" and struck out "aggregating $10 or more" after "interest", in cl. (vi) as so redesignated inserted "6042(e), 6044(f), 6049(e), or" before "6051(d)", redesignated former par. (2) as subpar. (B), in subpar. (B) as so redesignated designated from "section 6052(a)" through the end of the parenthesis as cl. (iii) and struck out "with respect to group-term life insurance on the life of an employee" thereafter, added cls. (i), (ii), and (iv), in text after cl. (iv) substituted "subparagraph (A)" for "paragraph (1)", "subparagraph (B)" for "paragraph (2)", "$50 for each such failure" for "$10 for each such failure", and "shall not exceed $50,000" for "shall not exceed $25,000", and added par. (2). Subsec. (b). Pub. L. 97-248, Sec. 309(b)(2), struck out pars. (3) and (4) which referred to section 6049(a)(2) and section 6049(a)(3), respectively, as sources of authority for the requirement of filing a statement of payment to another person. Subsec. (f). Pub. L. 97-248, Sec. 315(b), substituted "$25" and "$15,000" for "$10" and "$5,000", respectively. 1981 - Subsec. (a). Pub. L. 97-34, Sec. 723(a)(4), inserted in heading "information at source," before "payments of dividends". Subsec. (a)(1). Pub. L. 97-34, Sec. 723(a)(1), added subpars. (A), (E), and (F), and redesignated former subpars. (A) to (C) as (B) to (D), respectively. Subsec. (b). Pub. L. 97-34, Sec. 723(a)(3), substituted provisions relating to failure to file required statement of payment to another person under authority of section 6042(a)(2), 6044(a)(2), or 6049(a)(2) or (3), and imposition of penalties with a maximum of $1,000 for all failures during the calendar year, for provisions relating to failure to file required statement of payment to another person under authority of section 6041, 6042(a)(2), 6044(a)(2), 6049(a)(2) or (3), 6050A(a) or (b), 6050C, 6051(d), or 6053(b), and imposition of penalties with a maximum of $1,000 for all failures during the calendar year. Subsecs. (h), (i). Pub. L. 97-34, Sec. 311(f), added subsec. (h) and redesignated former subsec. (h) as (i). 1980 - Subsec. (b). Pub. L. 96-223 inserted reference to statement required by section 6050C (relating to information regarding windfall profit tax on crude oil). Subsec. (d)(3). Pub. L. 96-603 substituted in heading "returns" for "reports" and in text "failure to comply" for "failure to file a report required under section 6056 (relating to annual reports by private foundations) or to comply", "failing to meet such requirements" for "failing so to file or meet the publicity requirement", and "failure with respect" for "failure to file or comply with the requirements of section 6104(d) with regard". Subsecs. (g), (h). Pub. L. 96-499 added subsec. (g) and redesignated former subsec. (g) as (h). 1979 - Subsec. (a). Pub. L. 96-167 inserted "or" after "$10 or more)," in par. (1), struck out par. (2) relating to failure to make a return required by section 6039(a) with respect to a transfer of stock or a transfer of legal title to stock, redesignated par. (3) as (2), and in closing provision substituted "return referred to in paragraph (2)" for "return referred to in paragraph (2) or (3)". 1976 - Subsec. (a). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out "or his delegate" after "Secretary". Subsec. (b). Pub. L. 94-455, Secs. 1207(e)(3)(B), (C), 1906(b)(13)(A), inserted "in the case of each failure to make a return required by section 6050A(a) (relating to reporting requirements of certain fishing boat operators)," after "income tax withheld)," and "or section 6050A(b) (relating to statements furnished by certain fishing boat operators)," after "respect to tips)," and struck out "or his delegate" after "Secretary". Subsecs. (d) to (f). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out "or his delegate" after "Secretary" wherever appearing. 1974 - Pub. L. 93-406, Sec. 1031(b)(1)(B)(i), inserted ", registration statements, etc." in section catchline. Subsecs. (e) to (g). Pub. L. 93-406, Sec. 1031(b)(1)(A), added subsecs. (e) and (f) and redesignated former subsec. (e) as (g). 1969 - Subsecs. (d), (e). Pub. L. 91-172 added subsec. (d) and redesignated former subsec. (d) as (e). 1965 - Subsec. (b). Pub. L. 89-97, Sec. 313(e)(2)(B), inserted "and in the case of each failure to furnish a statement required by section 6053(b) (relating to statements furnished by employers with respect to tips)," after "income tax withheld).". Subsec. (c). Pub. L. 89-212 inserted "or which are compensation (as defined in section 3231(e))" and "or section 3201 (as the case may be)". Pub. L. 89-97, Sec. 313(e)(3), added subsec. (c). Former subsec. (c) redesignated (d). Subsec. (d). Pub. L. 89-97, Sec. 313(e)(3), redesignated former subsec. (c) as (d). 1964 - Subsec. (a). Pub. L. 88-272 provided a penalty for failure to make a return required by section 6039(a) with respect to a transfer of stock or a transfer of legal title to stock, and by section 6052(a) with respect to group-term life insurance on the life of an employee. 1962 - Subsec. (a). Pub. L. 87-834 added subsec. (a). Former subsec. (a) redesignated (b). Subsec. (b). Pub. L. 87-834 redesignated former subsec. (a) as (b), and substituted "section 6042(a)(2) (relating to payments of dividends aggregating less than $10), section 6044(a)(2) (relating to payments of patronage dividends aggregating less than $10), section 6049(a)(2) (relating to payments of interest aggregating less than $10), section 6049(a)(3) (relating to other payments of interest by corporations), or section 6051(d) (relating to information returns with respect to income tax withheld)" for "section 6042(1) (relating to payments of corporate dividends), section 6044 (relating to patronage dividends), or section 6051(d) (relating to information returns with respect to income tax withheld)". Former subsec. (b) redesignated (c). Subsec. (c). Pub. L. 87-834 redesignated former subsec. (b) as (c). 1958 - Subsec. (a). Pub. L. 85-866 substituted "section 6042(1)" for "section 6042" and "(upon notice and demand by the Secretary or his delegate and in the same manner as tax), by the person failing to so file the statement, $1 for each such statement not so filed" for "by the person failing to file the statement, upon notice and demand by the Secretary or his delegate and in the same manner as tax, $1 for each such statement not filed", deleted "section 6045 (relating to returns of brokers)" after "patronage dividends)" and inserted "on the date prescribed therefor (determined with regard to any extension of time for filing)" after "income tax withheld),". EFFECTIVE DATE OF 2000 AMENDMENT Amendment by section 1(c) of Pub. L. 106-230 effective July 1, 2000, see section 1(d) of Pub. L. 106-230, set out as a note under section 527 of this title. Amendment by section 3(c) of Pub. L. 106-230 applicable to returns for taxable years beginning after June 30, 2000, see section 3(d) of Pub. L. 106-230, set out as a note under section 6012 of this title. EFFECTIVE DATE OF 1998 AMENDMENT Amendment by Pub. L. 105-277 applicable to requests made after the later of Dec. 31, 1998, or the 60th day after the Secretary of the Treasury first issues the regulations referred to in section 6104(d)(4) of this title, see section 1004(b)(3) of Pub. L. 105- 277, set out as a note under section 6104 of this title. EFFECTIVE DATE OF 1997 AMENDMENT Section 1281(e) of Pub. L. 105-34 provided that: "The amendments made by this section [amending this section and sections 6683 and 7519 of this title] shall apply to taxable years beginning after the date of the enactment of this Act [Aug. 5, 1997]." Amendment by section 1602(d)(2)(B) of Pub. L. 105-34 effective as if included in the provisions of the Health Insurance Portability and Accountability Act of 1996, Pub. L. 104-191, to which such amendment relates, see section 1602(i) of Pub. L. 105-34, set out as a note under section 26 of this title. EFFECTIVE DATE OF 1996 AMENDMENTS Amendment by section 1455(c), (d)(2) of Pub. L. 104-188 applicable to returns, reports, and other statements the due date for which (determined without regard to extensions) is after Dec. 31, 1996, see section 1455(e) of Pub. L. 104-188, set out as a note under section 408 of this title. Section 1314(c) of Pub. L. 104-168 provided that: "The amendments made by this section [amending this section] shall apply to returns for taxable years ending on or after the date of the enactment of this Act [July 30, 1996]." EFFECTIVE DATE OF 1993 AMENDMENT Amendment by Pub. L. 103-66 applicable to stock issued after Aug. 10, 1993, see section 13113(e) of Pub. L. 103-66, set out as a note under section 53 of this title. EFFECTIVE DATE OF 1992 AMENDMENT Amendment by Pub. L. 102-318 applicable, except as otherwise provided, to distributions after Dec. 31, 1992, see section 522(d) of Pub. L. 102-318, set out as a note under section 401 of this title. EFFECTIVE DATE OF 1989 AMENDMENTS Amendment by section 7208(b)(2) of Pub. L. 101-239 applicable to transactions after Mar. 31, 1990, see section 7208(b)(4) of Pub. L. 101-239, set out as a note under section 6043 of this title. Amendment by Pub. L. 101-140 effective as if included in section 1151 of Pub. L. 99-514, see section 203(c) of Pub. L. 101-140, set out as a note under section 79 of this title. EFFECTIVE DATE OF 1988 AMENDMENT Amendment by sections 1011B(a)(10), 1017(b), 1018(u)(36) of Pub. L. 100-647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99-514, to which such amendment relates, see section 1019(a) of Pub. L. 100- 647, set out as a note under section 1 of this title. Amendment by section 3021(a)(10) of Pub. L. 100-647 effective as if included in the amendments by section 1151 of Pub. L. 99-514, see section 3021(d)(1) of Pub. L. 100-647, set out as a note under section 129 of this title. EFFECTIVE DATE OF 1987 AMENDMENT Amendment by section 10502(d)(11) of Pub. L. 100-203 applicable to sales after Mar. 31, 1988, see section 10502(e) of Pub. L. 100- 203, set out as a note under section 40 of this title. Section 10704(d) of Pub. L. 100-203 provided that: "The amendments made by this section [amending this section and sections 6685 and 7207 of this title] shall apply - "(1) to returns for years beginning after December 31, 1986, and "(2) on and after the date of the enactment of this Act [Dec. 22, 1987] in the case of applications submitted to the Internal Revenue Service - "(A) after July 15, 1987, or "(B) on or before July 15, 1987, if the organization has a copy of the application on July 15, 1987." EFFECTIVE DATE OF 1986 AMENDMENT Amendment by section 1151(b) of Pub. L. 99-514 applicable to years beginning after Dec. 31, 1988, with certain qualifications and exceptions, see section 1151(k) of Pub. L. 99-514, as amended, set out as a note under section 79 of this title. Amendment by section 1301(g) of Pub. L. 99-514 applicable to bonds issued after Aug. 15, 1986, except as otherwise provided, see sections 1311 to 1318 of Pub. L. 99-514, set out as an Effective Date; Transitional Rules note under section 141 of this title. Amendment by section 1501(d)(1)(A) of Pub. L. 99-514 applicable to returns the due date for which (determined without regard to extensions) is after Dec. 31, 1986, see section 1501(e) of Pub. L. 99-514, set out as an Effective Date note under section 6721 of this title. Amendment by section 1702(b) of Pub. L. 99-514 applicable to sales after first calendar quarter beginning more than 60 days after Oct. 22, 1986, see section 1702(c) of Pub. L. 99-514, set out as a note under section 4041 of this title. Amendment by sections 1810(f)(9) and 1811(c)(2) of Pub. L. 99-514 effective, except as otherwise provided, as if included in the provisions of the Tax Reform Act of 1984, Pub. L. 98-369, div. A, to which such amendment relates, see section 1881 of Pub. L. 99- 514, set out as a note under section 48 of this title. EFFECTIVE DATE OF 1984 AMENDMENTS Amendment by Pub. L. 98-612 effective Jan. 1, 1985, see section 1(d)(2) of Pub. L. 98-612. Amendment by Pub. L. 98-611 effective Jan. 1, 1985, see section 1(g)(2) of Pub. L. 98-611, set out as a note under section 127 of this title. Amendment by Pub. L. 98-397 applicable to distributions after Dec. 31, 1984, see section 302(c) of Pub. L. 98-397, set out as a note under section 1001 of Title 29, Labor. Amendment by section 145(b)(1), (2) of Pub. L. 98-369 applicable to amounts received after Dec. 31, 1984, see section 145(d) of Pub. L. 98-369, set out as an Effective Date note under section 6050H of this title. Amendment by section 146(b)(1), (2) of Pub. L. 98-369 applicable to amounts received after Dec. 31, 1984, see section 146(d) of Pub. L. 98-369, set out as an Effective Date note under section 6050I of this title. Amendment by section 148(b)(1), (2) of Pub. L. 98-369 applicable with respect to acquisitions of property and abandonments of property after Dec. 31, 1984, see section 148(d) of Pub. L. 98-369, set out as an Effective Date note under section 6050J of this title. Amendment by section 149(b)(1) of Pub. L. 98-369 applicable with respect to exchanges after Dec. 31, 1984, see section 149(d) of Pub. L. 98-369, set out as an Effective Date note under section 6050K of this title. Amendment by section 155(b)(2)(A) of Pub. L. 98-369 applicable to contributions made after Dec. 31, 1984, in taxable years ending after such date, see section 155(d)(1) of Pub. L. 98-369, set out as an Effective Date note under section 6050L of this title. Amendment by section 491(d)(50) of Pub. L. 98-369 applicable to obligations issued after Dec. 31, 1983, see section 491(f)(1) of Pub. L. 98-369, set out as a note under section 62 of this title. Amendment by section 531(b)(4)(B) of Pub. L. 98-369 effective Jan. 1, 1985, see section 531(h) of Pub. L. 98-369, set out as an Effective Date note under section 132 of this title. Amendment by section 714(j)(3) of Pub. L. 98-369 effective as if included in the provision of the Tax Equity and Fiscal Responsibility Act of 1982, Pub. L. 97-248, to which such amendment relates, see section 715 of Pub. L. 98-369, set out as a note under section 31 of this title. EFFECTIVE DATE OF 1983 AMENDMENTS Amendment by Pub. L. 98-67 applicable with respect to payments made after Dec. 31, 1983, see section 110(a) of Pub. L. 98-67, set out as a note under section 31 of this title. Pub. L. 97-448, title II, Sec. 203(a), (b), Jan. 12, 1983, 96 Stat. 2397, as amended by Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: "(a) General Rule. - Except as provided in subsection (b), any amendment made by this title [amending this section and sections 44D, 46, 48, 193, 613A, 4988, 4989, 4991-4997, 6015, 6154, 6654, 6655, and 6678 of this title, enacting provisions set out as notes under section 4996 of this title, and amending a provision set out as a note under section 44E of this title] shall take effect as if it had been included in the provision of the Crude Oil Windfall Profit Tax Act of 1980 [Pub. L. 96-223] to which such amendment relates. "(b) Exceptions. - "(1) Definition of independent producer. - The amendment made by section 201(d)(1) [amending section 4992 of this title] shall take effect on January 1, 1983. "(2) Penalty provision. - The amendments made by section 201(i) [amending this section and sections 4997 and 6678 of this title] shall apply with respect to returns and statements the due dates for which (without regard to extensions) are after the date of the enactment of this Act [Jan. 12, 1983]. "(3) Amendments to section 613a. - "(A) The amendment made by section 202(d)(1) [amending section 613A of this title] shall apply to transfers in taxable years ending after December 31, 1974, but only for purposes of applying section 613A of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] to periods after December 31, 1979. "(B) The amendment made by section 202(d)(2) [amending section 613A of this title] shall apply to bulk sales after September 18, 1982. "(4) No withholding by reason of condensate provision. - No withholding of tax shall be required under section 4995 of the Internal Revenue Code of 1986 by reason of the amendment made by section 201(h)(2)(A) of this Act [amending section 4996 of this title] before the date on which regulations with respect to such amendment are published in the Federal Register." EFFECTIVE DATE OF 1982 AMENDMENT Amendment by section 309(b)(2) of Pub. L. 97-248 applicable to amounts paid (or treated as paid) after Dec. 31, 1982, see section 309(c) of Pub. L. 97-248, set out as a note under section 6049 of this title. Section 315(d) of Pub. L. 97-248 provided that: "The amendments made by this section [amending this section and section 6678 of this title] shall apply with respect to returns or statements the due date for the filing of which (without regard to extensions) is after December 31, 1982." EFFECTIVE DATE OF 1981 AMENDMENT Amendment by section 311(f) of Pub. L. 97-34 applicable to taxable years beginning after Dec. 31, 1981, see section 311(i)(1) of Pub. L. 97-34, set out as a note under section 219 of this title. Section 723(c) of Pub. L. 97-34 provided that: "The amendments made by this section [amending this section and sections 6041 and 6678 of this title] shall apply to returns and statements required to be furnished after December 31, 1981." EFFECTIVE DATE OF 1980 AMENDMENTS Amendment by Pub. L. 96-603 applicable to taxable years beginning after Dec. 31, 1980, see section 1(f) of Pub. L. 96-603, set out as a note under section 6033 of this title. Amendment by Pub. L. 96-499, applicable to 1980 and subsequent calendar years, with 1980 being treated as beginning on June 19, 1980, and ending on Dec. 31, 1980, see section 1125(b) of Pub. L. 96-499, set out as an Effective Date note under section 897 of this title. Amendment by Pub. L. 96-223 applicable to periods after Feb. 29, 1980, see section 101(i) of Pub. L. 96-223, set out as a note under section 6161 of this title. EFFECTIVE DATE OF 1979 AMENDMENT Section 7(c) of Pub. L. 96-167 provided that: "The amendments made by this section [amending this section and sections 6039 and 6678 of this title] shall apply with respect to calendar years beginning after 1979." EFFECTIVE DATE OF 1976 AMENDMENT Amendment by section 1207(e)(3)(B), (C) of Pub. L. 94-455 applicable to calendar years beginning after Oct. 4, 1976, see section 1207(f)(4) of Pub. L. 94-455, set out as a note under section 3121 of this title. EFFECTIVE DATE OF 1974 AMENDMENT Amendment by Pub. L. 93-406 effective Sept. 2, 1974, see section 1034 of Pub. L. 93-406, set out as an Effective Date note under section 6057 of this title. EFFECTIVE DATE OF 1969 AMENDMENT Amendment by Pub. L. 91-172 applicable to taxable years beginning after Dec. 31, 1969, see section 101(k)(2)(B) of Pub. L. 91-172, set out as an Effective Date note under section 4940 of this title. EFFECTIVE DATE OF 1965 AMENDMENTS Amendment by Pub. L. 89-212 effective only with respect to tips received after 1965, see section 6 of Pub. L. 89-212, set out as a note under section 3201 of this title. Amendment by Pub. L. 89-97 applicable only with respect to tips received by employees after 1965, see section 313(f) of Pub. L. 89- 97, set out as an Effective Date note under section 6053 of this title. EFFECTIVE DATE OF 1964 AMENDMENT Amendment by Pub. L. 88-272 applicable to group-term life insurance provided after Dec. 31, 1963, in taxable years ending after such date, see section 204(d) of Pub. L. 88-272, set out as an Effective Date note under section 79 of this title. Amendment by Pub. L. 88-272 applicable to taxable years ending after Dec. 31, 1963, except for par. (2) of subsec. (a) which shall apply to stock transferred pursuant to options exercised on or after Jan. 1, 1964, see section 221(e) of Pub. L. 88-272, set out as a note under section 421 of this title. EFFECTIVE DATE OF 1962 AMENDMENT Amendment by Pub. L. 87-834 applicable to payments of dividends and interest made on or after Jan. 1, 1963, and to payments of amounts described in section 6044(b) of this title made on or after Jan. 1, 1963, with respect to patronage occurring on or after the first day of the first taxable year of the cooperative beginning on or after Jan. 1, 1963, see section 19(h) of Pub. L. 87-834, set out as a note under section 6042 of this title. EFFECTIVE DATE OF 1958 AMENDMENT Amendment by Pub. L. 85-866 effective Aug. 17, 1954, see section 1(c)(2) of Pub. L. 85-866, set out as a note under section 165 of this title. NONENFORCEMENT OF AMENDMENT MADE BY SECTION 1151 OF PUB. L. 99-514 FOR FISCAL YEAR 1990 No monies appropriated by Pub. L. 101-136 to be used to implement or enforce section 1151 of Pub. L. 99-514 or the amendments made by such section, see section 528 of Pub. L. 101-136, set out as a note under section 89 of this title. PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1998 For provisions directing that if any amendments made by subtitle D [Secs. 1401-1465] of title I of Pub. L. 104-188 require an amendment to any plan or annuity contract, such amendment shall not be required to be made before the first day of the first plan year beginning on or after Jan. 1, 1998, see section 1465 of Pub. L. 104- 188, set out as a note under section 401 of this title. PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1994 For provisions directing that if any amendments made by subtitle B [Secs. 521-523] of title V of Pub. L. 102-318 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1994, see section 523 of Pub. L. 102-318, set out as a note under section 401 of this title. PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989 For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or title XVIII [Secs. 1800-1899A] of Pub. L. 99-514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. L. 99-514, as amended, set out as a note under section 401 of this title. -FOOTNOTE- (!1) See 1993 Amendment note below. -End- -CITE- 26 USC Sec. 6653 01/02/2006 -EXPCITE- TITLE 26 - INTERNAL REVENUE CODE Subtitle F - Procedure and Administration CHAPTER 68 - ADDITIONS TO THE TAX, ADDITIONAL AMOUNTS, AND ASSESSABLE PENALTIES Subchapter A - Additions to the Tax and Additional Amounts PART I - GENERAL PROVISIONS -HEAD- Sec. 6653. Failure to pay stamp tax -STATUTE- Any person (as defined in section 6671(b)) who - (1) willfully fails to pay any tax imposed by this title which is payable by stamp, coupons, tickets, books, or other devices or methods prescribed by this title or by regulations under the authority of this title, or (2) willfully attempts in any manner to evade or defeat any such tax or the payment thereof, shall, in addition to other penalties provided by law, be liable for a penalty of 50 percent of the total amount of the underpayment of the tax. -SOURCE- (Aug. 16, 1954, ch. 736, 68A Stat. 822; Pub. L. 85-866, title I, Sec. 86, Sept. 2, 1958, 72 Stat. 1665; Pub. L. 91-172, title I, Sec. 101(j)(50), title IX, Sec. 943(c)(6), Dec. 30, 1969, 83 Stat. 531, 729; Pub. L. 91-679, Sec. 2, Jan. 12, 1971, 84 Stat. 2063; Pub. L. 93-406, title II, Sec. 1016(a)(18), Sept. 2, 1974, 88 Stat. 931; Pub. L. 96-223, title I, Sec. 101(f)(8), Apr. 2, 1980, 94 Stat. 253; Pub. L. 97-34, title V, Sec. 501(b), title VII, Sec. 722(b)(1), Aug. 13, 1981, 95 Stat. 326, 342; Pub. L. 97-248, title III, Sec. 325(a), Sept. 3, 1982, 96 Stat. 616; Pub. L. 97-448, title I, Secs. 105(a)(1)(D), 107(a)(3), Jan. 12, 1983, 96 Stat. 2384, 2391; Pub. L. 98-67, title I, Sec. 106, Aug. 5, 1983, 97 Stat. 382; Pub. L. 98-369, div. A, title I, Sec. 179(b)(3), July 18, 1984, 98 Stat. 718; Pub. L. 99-44, Sec. 1(b), May 24, 1985, 99 Stat. 77; Pub. L. 99-514, title XV, Sec. 1503(a), (b), (c)(2), (3), (d)(1), Oct. 22, 1986, 100 Stat. 2742, 2743; Pub. L. 100-647, title I, Sec. 1015(b)(2)(A), (B), (3), Nov. 10, 1988, 102 Stat. 3569; Pub. L. 101-239, title VII, Sec. 7721(c)(1), Dec. 19, 1989, 103 Stat. 2399.) -MISC1- AMENDMENTS 1989 - Pub. L. 101-239 substituted "Failure to pay stamp tax" for "Additions to tax for negligence and fraud" in section catchline and amended text generally, substituting a single par. for former subsecs. (a) to (g). 1988 - Subsec. (a)(1). Pub. L. 100-647, Sec. 1015(b)(2)(A), amended par. (1) generally. Prior to amendment, par. (1) read as follows: "If any part of any underpayment (as defined in subsection (c)) is due to negligence or disregard of rules or regulations, there shall be added to the tax an amount equal to the sum of - "(A) 5 percent of the underpayment, and "(B) an amount equal to 50 percent of the interest payable under section 6601 with respect to the portion of such underpayment which is attributable to negligence for the period beginning on the last date prescribed by law for payment of such underpayment (determined without regard to any extension) and ending on the date of the assessment of the tax (or, if earlier, the date of the payment of the tax)." Subsec. (b)(1). Pub. L. 100-647, Sec. 1015(b)(2)(B), amended par. (1) generally. Prior to amendment, par. (1) read as follows: "If any part of any underpayment (as defined in subsection (c)) of tax required to be shown on a return is due to fraud, there shall be added to the tax an amount equal to the sum of - "(A) 75 percent of the portion of the underpayment which is attributable to fraud, and "(B) an amount equal to 50 percent of the interest payable under section 6601 with respect to such portion for the period beginning on the last day prescribed by law for payment of such underpayment (determined without regard to any extension) and ending on the date of the assessment of the tax or, if earlier, the date of the payment of the tax." Subsec. (g). Pub. L. 100-647, Sec. 1015(b)(3), inserted at end "If any penalty is imposed under subsection (a) by reason of the preceding sentence, only the portion of the underpayment which is attributable to the failure described in the preceding sentence shall be taken into account in determining the amount of the penalty under subsection (a)." 1986 - Pub. L. 99-514, Sec. 1503(d)(1), substituted "Additions to tax for negligence and fraud" for "Failure to pay tax" in section catchline. Subsec. (a). Pub. L. 99-514, Sec. 1503(a), added subsec. (a) and struck out former subsec. (a) which added percentage to tax due for underpayment of taxes where negligence or intentional disregard of rules and regulations with respect to income, gift, or windfall profit taxes was involved, and also provided additional interest penalty for portion of underpayment attributable to negligence, etc. Subsec. (b). Pub. L. 99-514, Sec. 1503(b), added subsec. (b) and struck out former subsec. (b) which added percentage to tax due for underpayment of taxes where fraud was involved, and also provided for additional interest penalty, but stated that there would be no negligence addition where there was addition for fraud, and concluded with special rule for joint returns. Subsec. (d). Pub. L. 99-514, Sec. 1503(c)(2), substituted "portion of the underpayment which is attributable to fraud" for "same underpayment". Subsec. (f). Pub. L. 99-514, Sec. 1503(c)(3), struck out "or intentional disregard of rules and regulations (but without intent to defraud)" after "underpayment due to negligence". Subsec. (g). Pub. L. 99-514, Sec. 1503(b), amended subsec. (g) generally, substituting provisions relating to special rule for amounts shown on information returns for provisions relating to special rule in case of interest or dividend payments, and struck out provision that penalty was to apply only to portion of underpayment due to failure to include interest or dividend payment. 1985 - Subsec. (h). Pub. L. 99-44 repealed Pub. L. 98-369, Sec. 179(b)(3), which added subsec. (h), and provided that the Internal Revenue Code of 1954 [now 1986] [this title] shall be applied and administered as if section 179(b)(3) (and the amendments made by such section) had not been enacted. See 1984 Amendment note and Effective Date of 1985 Amendment note below. 1984 - Subsec. (h). Pub. L. 98-369 added subsec. (h) which provided for a special rule in the case of underpayment attributable to failure to meet the substantiation requirements of section 274(d) of this title. See 1985 Amendment note above. 1983 - Subsec. (a)(2)(B). Pub. L. 97-448, Sec. 107(a)(3), inserted "(or, if earlier, the date of the payment of the tax)" after "assessment of the tax". Subsec. (f). Pub. L. 97-448, Sec. 105(a)(1)(D), redesignated subsec. (g), added by Pub. L. 97-34, as (f) and substituted "unrecognized gain" for "unrealized gain" in heading. Subsec. (g). Pub. L. 98-67 added subsec. (g). Pub. L. 97-448, Sec. 105(a)(1)(D), redesignated subsec. (g), added by Pub. L. 97-34, as (f). 1982 - Subsec. (b). Pub. L. 97-248 designated first sentence of existing provisions as par. (1) with heading "In general", struck out second sentence which provided that in the case of income taxes and gift taxes, the amount under this subsec. shall be in lieu of any amount determined under subsec. (a), added pars. (2) and (3), designated last sentence as par. (4) with heading "Special rule for joint returns", and in par. (4) as so designated substituted "of the spouse" for "of a spouse". 1981 - Subsec. (a). Pub. L. 97-34, Sec. 722(b)(1), designated existing provisions as par. (1), inserted heading, struck out "(relating to income taxes and gift taxes)", and added par. (2) after "subtitle B". Subsec. (g). Pub. L. 97-34, Sec. 501(b), added subsec. (g). 1980 - Subsec. (a). Pub. L. 96-223 substituted ", gift, or windfall profit taxes" for "or gift taxes" in heading, and in text substituted "," for "or" before "by chapter 12" and inserted ", or by chapter 45 (relating to windfall profit tax)" before "is due to negligence". 1974 - Subsec. (c)(1). Pub. L. 93-406 substituted "certain excise" for "chapter 42" in heading and text. 1971 - Subsec. (b). Pub. L. 91-679 inserted sentence making subsection inapplicable, in the case of a joint return under section 6013 of this title, with respect to the tax of a spouse unless some part of the underpayment is due to the fraud of such spouse. 1969 - Subsec. (c)(1). Pub. L. 91-172, Sec. 101(j)(50), inserted reference to chapter 42 taxes in heading and text. Subsec. (d). Pub. L. 91-172, Sec. 943(c)(6), inserted "or pay tax" after "such return". 1958 - Subsec. (c)(1). Pub. L. 85-866, inserted "on or" after "such return was filed". EFFECTIVE DATE OF 1989 AMENDMENT Amendment by Pub. L. 101-239 applicable to returns the due date for which (determined without regard to extensions) is after Dec. 31, 1989, see section 7721(d) of Pub. L. 101-239, set out as a note under section 461 of this title. EFFECTIVE DATE OF 1988 AMENDMENT Amendment by section 1015(b)(2)(A), (B) of Pub. L. 100-647 applicable to returns the due date for which (determined without regard to extensions) is after Dec. 31, 1988, see section 1015(b)(4) of Pub. L. 100-647, set out as a note under section 6013 of this title. Amendment by section 1015(b)(3) of Pub. L. 100-647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99-514, to which such amendment relates, see section 1019(a) of Pub. L. 100-647, set out as a note under section 1 of this title. EFFECTIVE DATE OF 1986 AMENDMENT Section 1503(e) of Pub. L. 99-514 provided that: "The amendments made by this section [amending this section and section 6222 of this title] shall apply to returns the due date for which (determined without regard to extensions) is after December 31, 1986." EFFECTIVE DATE OF 1985 AMENDMENT Amendment by Pub. L. 99-44 effective as if included in the amendments made by section 179(b) of Pub. L. 98-369, see section 6(a) of Pub. L. 99-44, set out as a note under section 274 of this title. EFFECTIVE DATE OF 1984 AMENDMENT Amendment by Pub. L. 98-369 applicable to taxable years beginning after Dec. 31, 1984, see section 179(d)(2) of Pub. L. 98-369, set out as an Effective Date note under section 280F of this title. EFFECTIVE DATE OF 1983 AMENDMENTS Amendment by Pub. L. 98-67 applicable with respect to payments made after Dec. 31, 1983, see section 110(a) of Pub. L. 98-67, set out as a note under section 31 of this title. Amendment by Pub. L. 97-448 effective, except as otherwise provided, as if it had been included in the provision of the Economic Recovery Tax Act of 1981, Pub. L. 97-34, to which such amendment relates, see section 109 of Pub. L. 97-448, set out as a note under section 1 of this title. EFFECTIVE DATE OF 1982 AMENDMENT Section 325(b) of Pub. L. 97-248 provided that: "The amendment made by subsection (a) [amending this section] shall apply with respect to taxes the last day prescribed by law for payment of which (determined without regard to any extension) is after the date of enactment of this Act [Sept. 3, 1982]." EFFECTIVE DATE OF 1981 AMENDMENT Amendment by section 501(b) of Pub. L. 97-34 applicable to property acquired and positions established by the taxpayer after June 23, 1981, in taxable years ending after such date, and applicable when so elected with respect to property held on June 23, 1981, see section 508 of Pub. L. 97-34, set out as an Effective Date note under section 1092 of this title. Section 722(b)(2) of Pub. L. 97-34 provided that: "The amendment made by paragraph (1) [amending this section] shall apply to taxes the last date prescribed for payment of which is after December 31, 1981." EFFECTIVE DATE OF 1980 AMENDMENT Amendment by Pub. L. 96-223 applicable to periods after Feb. 29, 1980, see section 101(i) of Pub. L. 96-223, set out as a note under section 6161 of this title. EFFECTIVE DATE OF 1974 AMENDMENT Amendment by Pub. L. 93-406 applicable, except as otherwise provided in section 1017(c) through (i) of Pub. L. 93-406, for plan years beginning after Sept. 2, 1974, but, in the case of plans in existence on Jan. 1, 1974, amendment by Pub. L. 93-406 applicable for plan years beginning after Dec. 31, 1975, see section 1017 of Pub. L. 93-406, set out as an Effective Date; Transitional Rules note under section 410 of this title. EFFECTIVE DATE OF 1971 AMENDMENT Amendment by Pub. L. 91-679 applicable to all taxable years to which this title applies, see section 3 of Pub. L. 91-679, set out as a note under section 6013 of this title. EFFECTIVE DATE OF 1969 AMENDMENT Amendment by section 101(j)(50) of Pub. L. 91-172 effective Jan. 1, 1970, see section 101(k)(1) of Pub. L. 91-172, set out as an Effective Date note under section 4940 of this title. Amendment by section 943(c)(6) of Pub. L. 91-172 applicable with respect to tax returns the date prescribed by law for filing of which is after Dec. 31, 1969, see section 943(d) of Pub. L. 91-172, set out as a note under section 6651 of this title. EFFECTIVE DATE OF 1958 AMENDMENT Amendment by Pub. L. 85-866 effective Aug. 17, 1954, see section 1(c)(2) of Pub. L. 85-866, set out as a note under section 165 of this title. REPEAL OF REGULATIONS COVERING SUBSTANTIATION BY ADEQUATE CONTEMPORANEOUS RECORDS Regulations issued before May 24, 1985, to carry out subsec. (h) of this section as added by section 179(b)(3) of Pub. L. 98-369 to have no force and effect, see section 1(c) of Pub. L. 99-44, set out as a note under section 274 of this title. -End- -CITE- 26 USC Sec. 6654 01/02/2006 -EXPCITE- TITLE 26 - INTERNAL REVENUE CODE Subtitle F - Procedure and Administration CHAPTER 68 - ADDITIONS TO THE TAX, ADDITIONAL AMOUNTS, AND ASSESSABLE PENALTIES Subchapter A - Additions to the Tax and Additional Amounts PART I - GENERAL PROVISIONS -HEAD- Sec. 6654. Failure by individual to pay estimated income tax -STATUTE- (a) Addition to the tax Except as otherwise provided in this section, in the case of any underpayment of estimated tax by an individual, there shall be added to the tax under chapter 1 and the tax under chapter 2 for the taxable year an amount determined by applying - (1) the underpayment rate established under section 6621, (2) to the amount of the underpayment, (3) for the period of the underpayment. (b) Amount of underpayment; period of underpayment For purposes of subsection (a) - (1) Amount The amount of the underpayment shall be the excess of - (A) the required installment, over (B) the amount (if any) of the installment paid on or before the due date for the installment. (2) Period of underpayment The period of the underpayment shall run from the due date for the installment to whichever of the following dates is the earlier - (A) the 15th day of the 4th month following the close of the taxable year, or (B) with respect to any portion of the underpayment, the date on which such portion is paid. (3) Order of crediting payments For purposes of paragraph (2)(B), a payment of estimated tax shall be credited against unpaid required installments in the order in which such installments are required to be paid. (c) Number of required installments; due dates For purposes of this section - (1) Payable in 4 installments There shall be 4 required installments for each taxable year. (2) Time for payment of installments In the case of the following The due date is: required installments: -------------------------------------------------------------------- 1st April 15 2nd June 15 3rd September 15 4th January 15 of the following taxable year. -------------------------------------------------------------------- (d) Amount of required installments For purposes of this section - (1) Amount (A) In general Except as provided in paragraph (2), the amount of any required installment shall be 25 percent of the required annual payment. (B) Required annual payment For purposes of subparagraph (A), the term "required annual payment" means the lesser of - (i) 90 percent of the tax shown on the return for the taxable year (or, if no return is filed, 90 percent of the tax for such year), or (ii) 100 percent of the tax shown on the return of the individual for the preceding taxable year. Clause (ii) shall not apply if the preceding taxable year was not a taxable year of 12 months or if the individual did not file a return for such preceding taxable year. (C) Limitation on use of preceding year's tax (i) In general If the adjusted gross income shown on the return of the individual for the preceding taxable year beginning in any calendar year exceeds $150,000, clause (ii) of subparagraph (B) shall be applied by substituting the applicable percentage for "100 percent". For purposes of the preceding sentence, the applicable percentage shall be determined in accordance with the following table: The If the preceding taxable applicable year begins in: percentage is: 1998 105 1999 108.6 2000 110 2001 112 2002 or thereafter 110. This clause shall not apply in the case of a preceding taxable year beginning in calendar year 1997. (ii) Separate returns In the case of a married individual (within the meaning of section 7703) who files a separate return for the taxable year for which the amount of the installment is being determined, clause (i) shall be applied by substituting "$75,000" for "$150,000". (iii) Special rule In the case of an estate or trust, adjusted gross income shall be determined as provided in section 67(e). (2) Lower required installment where annualized income installment is less than amount determined under paragraph (1) (A) In general In the case of any required installment, if the individual establishes that the annualized income installment is less than the amount determined under paragraph (1) - (i) the amount of such required installment shall be the annualized income installment, and (ii) any reduction in a required installment resulting from the application of this subparagraph shall be recaptured by increasing the amount of the next required installment determined under paragraph (1) by the amount of such reduction (and by increasing subsequent required installments to the extent that the reduction has not previously been recaptured under this clause). (B) Determination of annualized income installment In the case of any required installment, the annualized income installment is the excess (if any) of - (i) an amount equal to the applicable percentage of the tax for the taxable year computed by placing on an annualized basis the taxable income, alternative minimum taxable income, and adjusted self-employment income for months in the taxable year ending before the due date for the installment, over (ii) the aggregate amount of any prior required installments for the taxable year. (C) Special rules For purposes of this paragraph - (i) Annualization The taxable income, alternative minimum taxable income, and adjusted self-employment income shall be placed on an annualized basis under regulations prescribed by the Secretary. (ii) Applicable percentage In the case of the following The applicable required installments: percentage is: 1st 22.5 2nd 45 3rd 67.5 4th 90. (iii) Adjusted self-employment income The term "adjusted self-employment income" means self- employment income (as defined in section 1402(b)); except that section 1402(b) shall be applied by placing wages (within the meaning of section 1402(b)) for months in the taxable year ending before the due date for the installment on an annualized basis consistent with clause (i). (D) Treatment of subpart F and section 936 income (i) In general Any amounts required to be included in gross income under section 936(h) or 951(a) (and credits properly allocable thereto) shall be taken into account in computing any annualized income installment under subparagraph (B) in a manner similar to the manner under which partnership income inclusions (and credits properly allocable thereto) are taken into account. (ii) Prior year safe harbor If a taxpayer elects to have this clause apply to any taxable year - (I) clause (i) shall not apply, and (II) for purposes of computing any annualized income installment for such taxable year, the taxpayer shall be treated as having received ratably during such taxable year items of income and credit described in clause (i) in an amount equal to the amount of such items shown on the return of the taxpayer for the preceding taxable year (the second preceding taxable year in the case of the first and second required installments for such taxable year). (e) Exceptions (1) Where tax is small amount No addition to tax shall be imposed under subsection (a) for any taxable year if the tax shown on the return for such taxable year (or, if no return is filed, the tax), reduced by the credit allowable under section 31, is less than $1,000. (2) Where no tax liability for preceding taxable year No addition to tax shall be imposed under subsection (a) for any taxable year if - (A) the preceding taxable year was a taxable year of 12 months, (B) the individual did not have any liability for tax for the preceding taxable year, and (C) the individual was a citizen or resident of the United States throughout the preceding taxable year. (3) Waiver in certain cases (A) In general No addition to tax shall be imposed under subsection (a) with respect to any underpayment to the extent the Secretary determines that by reason of casualty, disaster, or other unusual circumstances the imposition of such addition to tax would be against equity and good conscience. (B) Newly retired or disabled individuals No addition to tax shall be imposed under subsection (a) with respect to any underpayment if the Secretary determines that - (i) the taxpayer - (I) retired after having attained age 62, or (II) became disabled, in the taxable year for which estimated payments were required to be made or in the taxable year preceding such taxable year, and (ii) such underpayment was due to reasonable cause and not to willful neglect. (f) Tax computed after application of credits against tax For purposes of this section, the term "tax" means - (1) the tax imposed by chapter 1 (other than any increase in such tax by reason of section 143(m)), plus (2) the tax imposed by chapter 2, minus (3) the credits against tax provided by part IV of subchapter A of chapter 1, other than the credit against tax provided by section 31 (relating to tax withheld on wages). (g) Application of section in case of tax withheld on wages (1) In general For purposes of applying this section, the amount of the credit allowed under section 31 for the taxable year shall be deemed a payment of estimated tax, and an equal part of such amount shall be deemed paid on each due date for such taxable year, unless the taxpayer establishes the dates on which all amounts were actually withheld, in which case the amounts so withheld shall be deemed payments of estimated tax on the dates on which such amounts were actually withheld. (2) Separate application The taxpayer may apply paragraph (1) separately with respect to - (A) wage withholding, and (B) all other amounts withheld for which credit is allowed under section 31. (h) Special rule where return filed on or before January 31 If, on or before January 31 of the following taxable year, the taxpayer files a return for the taxable year and pays in full the amount computed on the return as payable, then no addition to tax shall be imposed under subsection (a) with respect to any underpayment of the 4th required installment for the taxable year. (i) Special rules for farmers and fishermen For purposes of this section - (1) In general If an individual is a farmer or fisherman for any taxable year - (A) there shall be only 1 required installment for the taxable year, (B) the due date for such installment shall be January 15 of the following taxable year, (C) the amount of such installment shall be equal to the required annual payment determined under subsection (d)(1)(B) by substituting "66 2/3 percent" for "90 percent" and without regard to subparagraph (C) of subsection (d)(1), and (D) subsection (h) shall be applied - (i) by substituting "March 1" for "January 31", and (ii) by treating the required installment described in subparagraph (A) of this paragraph as the 4th required installment. (2) Farmer or fisherman defined An individual is a farmer or fisherman for any taxable year if - (A) the individual's gross income from farming or fishing (including oyster farming) for the taxable year is at least 66 2/3 percent of the total gross income from all sources for the taxable year, or (B) such individual's gross income from farming or fishing (including oyster farming) shown on the return of the individual for the preceding taxable year is at least 66 2/3 percent of the total gross income from all sources shown on such return. (j) Special rules for nonresident aliens In the case of a nonresident alien described in section 6072(c): (1) Payable in 3 installments There shall be 3 required installments for the taxable year. (2) Time for payment of installments The due dates for required installments under this subsection shall be determined under the following table: In the case of the following The due date is: required installments: -------------------------------------------------------------------- 1st June 15 2nd September 15 3rd January 15 of the following taxable year. -------------------------------------------------------------------- (3) Amount of required installments (A) First required installment In the case of the first required installment, subsection (d) shall be applied by substituting "50 percent" for "25 percent" in subsection (d)(1)(A). (B) Determination of applicable percentage The applicable percentage for purposes of subsection (d)(2) shall be determined under the following table: In the case of the following The applicable required installments: percentage is: 1st 45 2nd 67.5 3rd 90. (k) Fiscal years and short years (1) Fiscal years In applying this section to a taxable year beginning on any date other than January 1, there shall be substituted, for the months specified in this section, the months which correspond thereto. (2) Short taxable year This section shall be applied to taxable years of less than 12 months in accordance with regulations prescribed by the Secretary. (l) Estates and trusts (1) In general Except as otherwise provided in this subsection, this section shall apply to any estate or trust. (2) Exception for estates and certain trusts With respect to any taxable year ending before the date 2 years after the date of the decedent's death, this section shall not apply to - (A) the estate of such decedent, or (B) any trust - (i) all of which was treated (under subpart E of part I of subchapter J of chapter 1) as owned by the decedent, and (ii) to which the residue of the decedent's estate will pass under his will (or, if no will is admitted to probate, which is the trust primarily responsible for paying debts, taxes, and expenses of administration). (3) Exception for charitable trusts and private foundations This section shall not apply to any trust which is subject to the tax imposed by section 511 or which is a private foundation. (4) Special rule for annualizations In the case of any estate or trust to which this section applies, subsection (d)(2)(B)(i) shall be applied by substituting "ending before the date 1 month before the due date for the installment" for "ending before the due date for the installment". (m) Regulations The Secretary shall prescribe such regulations as may be necessary to carry out the purposes of this section. -SOURCE- (Aug. 16, 1954, ch. 736, 68A Stat. 823; Pub. L. 87-682, Sec. 1(a)(4), Sept. 25, 1962, 76 Stat. 575; Pub. L. 89-368, title I, Secs. 102(b)(1)-(3), 103(a), Mar. 15, 1966, 80 Stat. 62-64; Pub. L. 91-172, title III, Sec. 301(b)(13), Dec. 30, 1969, 83 Stat. 586; Pub. L. 92-5, title II, Sec. 203(b)(7), Mar. 17, 1971, 85 Stat. 11; Pub. L. 92-336, title II, Sec. 203(b)(7), July 1, 1972, 86 Stat. 420; Pub. L. 93-66, title II, Sec. 203(b)(7), (d), July 9, 1973, 87 Stat. 153; Pub. L. 93-233, Sec. 5(b)(7), (d), Dec. 31, 1973, 87 Stat. 954; Pub. L. 93-625, Sec. 7(c), Jan. 3, 1975, 88 Stat. 2115; Pub. L. 94-455, title XIX, Sec. 1906(a)(35), (b)(13)(A), Oct. 4, 1976, 90 Stat. 1829, 1834; Pub. L. 95-30, title I, Sec. 102(b)(16), May 23, 1977, 91 Stat. 139; Pub. L. 95-600, title IV, Sec. 421(e)(9), Nov. 6, 1978, 92 Stat. 2877; Pub. L. 97-34, title VI, Sec. 601(a)(6)(A), title VII, Sec. 725(b), (c)(5), Aug. 13, 1981, 95 Stat. 336, 346; Pub. L. 97-248, title II, Sec. 207(d)(7), formerly Sec. 207(c)(7), title III, Secs. 307(a)(14), 308(a), 328(a), Sept. 3, 1982, 96 Stat. 420, 590, 591, 618, renumbered Sec. 207(d)(7), Pub. L. 97-448, title III, Sec. 306(a)(1)(A)(i), Jan. 12, 1983, 96 Stat. 2400; Pub. L. 97-448, title I, Secs. 106(a)(4)(C), 107(c)(1), title II, Sec. 201(j)(3), Jan. 12, 1983, 96 Stat. 2390, 2391, 2396; Pub. L. 98-67, title I, Sec. 102(a), Aug. 5, 1983, 97 Stat. 369; Pub. L. 98-369, div. A, title IV, Sec. 411, July 18, 1984, 98 Stat. 788; Pub. L. 99-514, title XIV, Sec. 1404(a), title XV, Secs. 1511(c)(14), 1541(a), (b), title XVIII, Sec. 1841, Oct. 22, 1986, 100 Stat. 2713, 2745, 2751, 2852; Pub. L. 100-418, title I, Sec. 1941(b)(6)(A), Aug. 23, 1988, 102 Stat. 1324; Pub. L. 100-647, title I, Sec. 1014(d)(1), (2), title IV, Sec. 4005(g)(5), Nov. 10, 1988, 102 Stat. 3560, 3651; Pub. L. 101- 239, title VII, Sec. 7811(j)(5), (6), Dec. 19, 1989, 103 Stat. 2411, 2412; Pub. L. 102-164, title IV, Sec. 403(a), (b), Nov. 15, 1991, 105 Stat. 1062, 1064; Pub. L. 103-66, title XIII, Sec. 13214(a), (b), Aug. 10, 1993, 107 Stat. 475; Pub. L. 103-465, title VII, Sec. 711(b), Dec. 8, 1994, 108 Stat. 4998; Pub. L. 105-34, title X, Sec. 1091(a), title XII, Sec. 1202(a), Aug. 5, 1997, 111 Stat. 962, 994; Pub. L. 105-277, div. J, title II, Sec. 2003(a), Oct. 21, 1998, 112 Stat. 2681-901; Pub. L. 106-170, title V, Sec. 531(a), Dec. 17, 1999, 113 Stat. 1928.) -MISC1- AMENDMENTS 1999 - Subsec. (d)(1)(C)(i). Pub. L. 106-170 in table substituted items assigning applicable percentages of 108.6 for 1999 and 110 for 2000 for item assigning applicable percentage of 106 for 1999 or 2000. 1998 - Subsec. (d)(1)(C)(i). Pub. L. 105-277 in table substituted items assigning applicable percentages of 105 for 1998 and 106 for 1999 or 2000 for item assigning applicable percentage of 105 for 1998, 1999, or 2000. 1997 - Subsec. (d)(1)(C)(i). Pub. L. 105-34, Sec. 1091(a), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: "If the adjusted gross income shown on the return of the individual for the preceding taxable year exceeds $150,000, clause (ii) of subparagraph (B) shall be applied by substituting '110 percent' for '100 percent'." Subsec. (e)(1). Pub. L. 105-34, Sec. 1202(a), substituted "$1,000" for "$500". 1994 - Subsec. (d)(2)(D). Pub. L. 103-465 added subpar. (D). 1993 - Subsec. (d)(1)(C) to (F). Pub. L. 103-66, Sec. 13214(a), added subpar. (C) and struck out former subpars. (C) to (F) which related to limitation on use of preceding year's tax, modified adjusted gross income for current year, qualified pass-thru item, and other definitions and special rules, respectively. Subsec. (j)(3)(A). Pub. L. 103-66, Sec. 13214(b)(1), struck out before period at end "and subsection (d)(1)(C)(iii) shall not apply". Subsec. (l)(4). Pub. L. 103-66, Sec. 13214(b)(2), substituted "subsection (d)(2)(B)(i)" for "paragraphs (1)(C)(iv) and (2)(B)(i) of subsection (d)". 1991 - Subsec. (d)(1)(C) to (F). Pub. L. 102-164, Sec. 403(a), added subpars. (C) to (F). Subsec. (i)(1)(C). Pub. L. 102-164, Sec. 403(b)(1), amended subpar. (C) generally. Prior to amendment, subpar. (C) read as follows: "the amount of such installment shall be equal to the required annual payment (determined under subsection (d)(1)(B) by substituting '66 2/3 percent' for '90 percent', and". Subsec. (j)(3)(A). Pub. L. 102-164, Sec. 403(b)(2), inserted before period at end "and subsection (d)(1)(C)(iii) shall not apply". Subsec. (l)(4). Pub. L. 102-164, Sec. 403(b)(3), substituted "paragraphs (l)(C)(iv) and (2)(B)(i) of subsection (d)" for "subsection (d)(2)(B)(i)". 1989 - Subsec. (l)(1). Pub. L. 101-239, Sec. 7811(j)(5), substituted "this section shall" for "this subsection shall". Subsec. (l)(2)(B)(ii). Pub. L. 101-239, Sec. 7811(j)(6), inserted before period at end "(or, if no will is admitted to probate, which is the trust primarily responsible for paying debts, taxes, and expenses of administration)". 1988 - Subsec. (f)(1). Pub. L. 100-647, Sec. 4005(g)(5), inserted "(other than any increase in such tax by reason of section 143(m))" after "chapter 1". Subsec. (f)(3). Pub. L. 100-418 amended par. (3) generally. Prior to amendment par. (3) read as follows: "the sum of - "(A) the credits against tax allowed by part IV of subchapter A of chapter 1, other than the credit against tax provided by section 31 (relating to tax withheld on wages), plus "(B) to the extent allowed under regulations prescribed by the Secretary, any overpayment of the tax imposed by section 4986 (determined without regard to section 4995(a)(4)(B))." Subsec. (l). Pub. L. 100-647, Sec. 1014(d)(2), substituted "Estates and trusts" for "Trusts and certain estates" in heading and amended text generally. Prior to amendment, text read as follows: "This section shall apply to - "(1) any trust, and "(2) any estate with respect to any taxable year ending 2 or more years after the date of the death of the decedent's death." Pub. L. 100-647, Sec. 1014(d)(1), made clarifying amendment to directory language of Pub. L. 99-514, Sec. 1404(a), to reflect prior redesignation of subsec. (k) as (l) by section 1841 of Pub. L. 99-514, see 1986 Amendment note below. 1986 - Subsec. (a)(1). Pub. L. 99-514, Sec. 1511(c)(14), substituted "the underpayment rate established under section 6621" for "the applicable annual rate established under section 6621". Subsec. (d)(1)(B)(i). Pub. L. 99-514, Sec. 1541(a), substituted "90 percent" for "80 percent" in two places. Subsec. (d)(2)(C)(ii). Pub. L. 99-514, Sec. 1541(b)(1), in table of applicable percentages increased applicable percentages from "20" to "22.5", from "40" to "45", from "60" to "67.5", and from "80" to "90", respectively. Subsec. (i)(1)(C). Pub. L. 99-514, Sec. 1541(b)(2), substituted "90 percent" for "80 percent". Subsec. (j). Pub. L. 99-514, Sec. 1841, added subsec. (j). Former subsec. (j) redesignated (k). Subsec. (j)(3)(B). Pub. L. 99-514, Sec. 1541(b)(3), which directed the amendment of the table in subpar. (B) by substituting "45" for "40", "65.5" for "60", and "90" for "80", could not be executed because the higher figures appear in the text as enacted by section 1841 of Pub. L. 99-514. Subsec. (k). Pub. L. 99-514, Sec. 1841, redesignated former subsec. (j) as (k). Former subsec. (k) redesignated (l). Subsec. (l). Pub. L. 99-514, Sec. 1404(a), as amended by Pub. L. 100-647, Sec. 1014(d)(1), amended subsec. (l) generally. Prior to amendment, subsec. (l) read as follows: "This section shall not apply to any estate or trust." Pub. L. 99-514, Sec. 1841, redesignated subsec. (k) as (l). Former subsec. (l) redesignated (m). Subsec. (m). Pub. L. 99-514, Sec. 1841, redesignated former subsec. (l) as (m). 1984 - Subsec. (a). Pub. L. 98-369 amended subsec. (a) generally, setting out the exception provision as initial phrase, previously set out as second phrase, substituting "subsection (d)" for "this section"; and substituting "determined by applying - " and provisions designated cls. (1) to (3) for provisions reading "determined at an annual rate established under section 6621 upon the amount of the underpayment (determined under subsection (b)) for the period of the underpayment (determined under subsection (c)))". Subsec. (b). Pub. L. 98-369 amended subsec. (b) generally, substituting provisions relating to amount and period of underpayment for provisions relating only to amount of underpayment. Subsec. (c). Pub. L. 98-369 amended subsec. (c) generally, substituting provisions relating to number of required installments and due dates for provisions respecting period of underpayment. See subsec. (b)(2) of this section. Subsec. (d). Pub. L. 98-369 amended subsec. (d) generally, substituting provisions relating to amount of required installments for provisions designated "Exception" and describing conditions for nonimposition of an addition to the tax with respect to any underpayment of any installment. Subsec. (e). Pub. L. 98-369 amended subsec. (e) generally, substituting provisions relating to exceptions for provisions relating to application of section in case of tax withheld on wages. See subsec. (g) of this section. Subsec. (f). Pub. L. 98-369 amended subsec. (f) generally, substituting provisions relating to tax computed after application of credits against tax for provisions relating to exception where tax is small amount. See subsec. (e)(1) of this section. Subsec. (g). Pub. L. 98-369 amended subsec. (g) generally, substituting provisions relating to application of section in case of tax withheld on wages for provisions relating to tax computed after application of credits against tax. See subsec. (f) of this section. Subsec. (h). Pub. L. 98-369 amended subsec. (h) generally, substituting provisions relating to special rule for returns filed on or before January 31 for provisions relating to exception for no tax liability for preceding taxable year. See subsec. (e)(2) of this section. Subsec. (i). Pub. L. 98-369 amended subsec. (i) generally, substituting provisions relating to special rules for farmers and fishermen for provisions relating to short taxable year. See subsec. (j)(2) of this section. Subsecs. (j) to (l). Pub. L. 98-369, in amending section generally, added subsecs. (j) to (l). 1983 - Subsec. (e)(1). Pub. L. 98-67 repealed amendments made by Pub. L. 97-248. See 1982 Amendment note below. Subsec. (f)(1). Pub. L. 97-448, Sec. 107(c