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Sec. 6679. Failure To File Returns, Etc., With Respect To Foreign Corporations Or Foreign Partnerships

I.R.C. § 6679(a) Civil Penalty
I.R.C. § 6679(a)(1) In General
In addition to any criminal penalty provided by law, any person required to file a return under section 6046 or 6046A who fails to file such return at the time provided in such section, or who files a return which does not show the information required pursuant to such section, shall pay a penalty of $10,000, unless it is shown that such failure is due to reasonable cause.
I.R.C. § 6679(a)(2) Increase In Penalty Where Failure Continues After Notification
If any failure described in paragraph (1) continues for more than 90 days after the day on which the Secretary mails notice of such failure to the United States person, such person shall pay a penalty (in addition to the amount required under paragraph (1)) of $10,000 for each 30-day period (or fraction thereof) during which such failure continues after the expiration of such 90-day period. The increase in any penalty under this paragraph shall not exceed $50,000.
I.R.C. § 6679(a)(3) Reduced Penalty For Returns Relating To Foreign Personal Holding Companies
[Repealed. Pub. L. 108-357, title IV, Sec. 413(c)(29)(B), Oct. 22, 2004, 118 Stat. 1418.]
I.R.C. § 6679(b) Deficiency Procedures Not To Apply
Subchapter B of chapter 63 (relating to deficiency procedure for income, estate, gift, and certain excise taxes) shall not apply in respect of the assessment or collection of any penalty imposed by subsection (a).
(Added Pub. L. 87-834, 20(c), Oct. 16, 1962, 76 Stat. 1062, and amended Pub. L. 91-172, title I, 101(j)(54), Dec. 30, 1969, 83 Stat. 532; Pub. L. 93-406, title II, 1016(a)(22), Sept. 2, 1974, 88 Stat. 931; Pub. L. 97-248, title III, 340(b)(1), (2), title IV, 405(b), (c)(2), Sept. 3, 1982, 96 Stat. 634, 670; Pub. L. 97-448, title III, 306(c)(2), Jan. 12, 1983, 96 Stat. 2406; Pub. L. 105-34, title XI, Sec. 1143(b), Aug. 5, 1997, 111 Stat 788; Pub. L. 108-357, title IV, Sec. 413(c)(29), Oct. 22, 2004, 118 Stat. 1418; Pub. L. 115-141, Div. U, title IV, Sec. 401(a)(308), Mar. 23, 2018, 132 Stat. 348.)
BACKGROUND NOTES
AMENDMENTS
2018--Subsec. (a)(1). Pub. L. 115-141, Div. U, Sec. 401(a)(308), amended par. (1) by substituting “section 6046 or 6046A” for “section 6046 and 6046A”.
2004 - Subsec. (a)(1). Pub. L. 108-357, Sec. 413(c)(29)(A), amended par. (1) by substituting “6046 and 6046A” for “6035, 6046, and 6046A”.
Subsec. (a)(3). Pub. L. 108-357, Sec. 413(c)(29)(B), struck par. (3). Before being struck, it read as follows:
“(3) Reduced penalty for returns relating to foreign personal holding companies.--In the case of a return required under section 6035, paragraph (1) shall be applied by substituting ‘$1,000’ for ‘$10,000’, and paragraph (2) shall not apply.
1997--Subsec. (a). Pub. L. 105-34, Sec. 1143(b), amended subsec. (a). Prior to amendment it read as follows:
“(a) Civil penalty
“In addition to any criminal penalty provided by law, any person required to file a return under section 6035, 6046, or 6046A who fails to file such return at the time provided in such section, or who files a return which does not show the information required pursuant to such section, shall pay a penalty of $1,000, unless it is shown that such failure is due to reasonable cause.”
1983--Pub. L. 97-448 amended language of Pub. L. 97-248, 405(b), (c)(2), to clarify an ambiguity created by the conflicting language of 340(b)(1), (2) and 405(b), (c)(2) of Pub. L. 97-248. See 1982 Amendment note below.
1982--Pub. L. 97-248, 340(b)(2), 405(c)(2), as amended by Pub. L. 97-448, 306(c)(2)(B), substituted “Failure to file returns, etc., with respect to foreign corporations or foreign partnerships” for “Failure to file returns as to organization or reorganization of foreign corporations and as to acquisitions of their stock” in section catchline.
Subsec. (a). Pub. L. 97-248, 340(b)(1), 405(b), as amended by Pub. L. 97-448, 306(a)(2)(A), substituted “section 6035, 6046, or 6046A” for “section 6046”.
1974--Subsec. (b). Pub. L. 93-406 substituted “and certain excise” for “chapter 42”.
1969--Subsec. (b). Pub. L. 91-172 inserted reference to chapter 42 taxes.
EFFECTIVE DATE OF 2018 AMENDMENT
Amendment by Pub. L. No. 115-141, Div. U, Sec. 401(a)(308), effective March 23, 2018.
EFFECTIVE DATE OF 2004 AMENDMENTS
Amendment by Sec. 413(c)(29) of Pub. L. 108-357 applicable to taxable years of foreign corporations beginning after December 31, 2004, and to taxable years of United States shareholders with or within which such taxable years of foreign corporations end.
EFFECTIVE DATE OF 1997 AMENDMENTS
Amendment by Sec. 1143(b) of Pub. L. 105-34 applicable to transfers and changes after the date of the enactment of this Act [enacted: Aug. 5, 1997].
EFFECTIVE DATE OF 1983 AMENDMENT
Amendment by Pub. L. 97-448 effective as if included in the provisions of the Tax Equity and Fiscal Responsibility Act of 1982, Pub. L. 97-248, to which such amendment relates, see section 311(d) of Pub. L. 97-448, set out as a note under section 31 of this title.
EFFECTIVE DATE OF 1982 AMENDMENT
Amendment by section 340(b)(1), (2) of Pub. L. 97-248 applicable to taxable years of foreign corporations beginning after Sept. 3, 1982, see section 340(c) of Pub. L. 97-248, set out as a note under section 6035 of this title.
Amendment by section 405(b), (c)(2) of Pub. L. 97-248 applicable with respect to acquisitions or dispositions of, or substantial changes in, interests in foreign partnerships occurring after Sept. 3, 1982, see section 407(b) of Pub. L. 97-248, set out as an Effective Date note under section 6046A 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 1969 AMENDMENT
Amendment by 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.
[6680. Repealed. Pub. L. 94-455, title XIX, 1904(b)(10)(A)(vi)(I), Oct. 4, 1976, 90 Stat. 1817]
Section, added Pub. L. 88-563, 6(a), Sept. 2, 1964, 78 Stat. 845, and amended Pub. L. 91-128, 4(h)(1), Nov. 26, 1969, 83 Stat. 268; Pub. L. 92-9, 3(j)(2), Apr. 1, 1971, 85 Stat. 22, related to failure to file interest equalization tax returns.
[6681. Repealed. Pub. L. 94-455, title XIX, 1904(b)(10)(D)(i), Oct. 4, 1976, 90 Stat. 1817]
Section, added Pub. L. 88-563, 6(a), Sept. 2, 1964, 78 Stat. 845, and amended Pub. L. 90-59, 4(d), July 1, 1967, 81 Stat. 155; Pub. L. 90-73, 2(d), Aug. 29, 1967, 81 Stat. 176; Pub. L. 92-9, 3(k)(1)-(3), Apr. 1, 1971, 85 Stat. 22, related to false equalization tax certificates.
Effective Date of Repeal
Section 1904(b)(10)(D)(iii) of Pub. L. 94-455 provided that: “The amendments made by this subparagraph [repealing this section] shall apply with respect to actions occurring after June 30, 1974.”