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Sec. 6693. Failure To Provide Reports On Certain Tax-Favored Accounts Or Annuities; Penalties Relating To Designated Nondeductible Contributions

I.R.C. § 6693(a) Reports
I.R.C. § 6693(a)(1) In General
If a person required to file a report under a provision referred to in paragraph (2) fails to file such report at the time and in the manner required by such provision, such person shall pay a penalty of $50 for each failure unless it is shown that such failure is due to reasonable cause.
I.R.C. § 6693(a)(2) Provisions
The provisions referred to in this paragraph are—
I.R.C. § 6693(a)(2)(A)
subsections (i) and (l) of section 408 (relating to individual retirement plans),
I.R.C. § 6693(a)(2)(B)
section 220(h) (relating to Archer MSAs),
I.R.C. § 6693(a)(2)(C)
section 223(h) (relating to health savings accounts),
I.R.C. § 6693(a)(2)(D)
section 529(d) (relating to qualified tuition programs),
I.R.C. § 6693(a)(2)(E)
section 529A(d) (relating to qualified ABLE programs), and
I.R.C. § 6693(a)(2)(F)
section 530(h) (relating to Coverdell education savings accounts).
This subsection shall not apply to any report which is an information return described in section 6724(d)(1)(C)(i) or a payee statement described in section 6724(d)(2)(X).
I.R.C. § 6693(b) Penalties Relating To Nondeductible Contributions
I.R.C. § 6693(b)(1) Overstatement Of Designated Nondeductible Contributions
Any individual who—
I.R.C. § 6693(b)(1)(A)
is required to furnish information under section 408(o)(4) as to the amount of designated nondeductible contributions made for any taxable year, and
I.R.C. § 6693(b)(1)(B)
overstates the amount of such contributions made for such taxable year,
shall pay a penalty of $100 for each such overstatement unless it is shown that such overstatement is due to reasonable cause.
I.R.C. § 6693(b)(2) Failure To File Form
Any individual who fails to file a form required to be filed by the Secretary under section 408(o)(4) shall pay a penalty of $50 for each such failure unless it is shown that such failure is due to reasonable cause.
I.R.C. § 6693(c) Penalties Relating To Simple Retirement Accounts
I.R.C. § 6693(c)(1) Employer Penalties
An employer who fails to provide 1 or more notices required by section 408(l)(2)(C) shall pay a penalty of $50 for each day on which such failures continue.
I.R.C. § 6693(c)(2) Trustee And Issuer Penalties
A trustee or issuer who fails—
I.R.C. § 6693(c)(2)(A)
to provide 1 or more statements required by the last sentence of section 408(i) shall pay a penalty of $50 for each day on which such failures continue, or
I.R.C. § 6693(c)(2)(B)
to provide 1 or more summary descriptions required by section 408(l)(2)(B) shall pay a penalty of $50 for each day on which such failures continue.
I.R.C. § 6693(c)(3) Reasonable Cause Exception
No penalty shall be imposed under this subsection with respect to any failure which the taxpayer shows was due to reasonable cause.
I.R.C. § 6693(d) Deficiency Procedures Not To Apply
Subchapter B of chapter 63 (relating to deficiency procedures for income, estate, gift, and certain excise taxes) does not apply to the assessment or collection of any penalty imposed by this section.
(Added by Pub. L. 93-406, title II, 2002(f), Sept. 2, 1974, 88 Stat. 967, and amended Pub. L. 96-222, title I, 101(a)(10)(H), Apr. 1, 1980, 94 Stat. 203; Pub. L. 98-369, div. A, title I, 147(b), July 18, 1984, 98 Stat. 687; Pub. L. 99-514, title XI, 1102(d)(1), (2)(A), (B), Oct. 22, 1986, 100 Stat. 2416; Pub. L. 100-647, title I, 1011(b)(4)(A), (B)(i), Nov. 10, 1988, 102 Stat. 3456, 3457; Pub. L. 104-188, title I, Sec. 1421(b)(4)(B), 1455(d)(3), Aug. 20, 1996, 110 Stat. 1755 ;Pub. L. 105-34, title II, XVI, , Sec. 211, 213(c), 1602(a)(4). 1601(d)(1)(C)(ii), Aug. 5, 1997, 111 Stat 788; Pub. L. 105-277, title IV, Sec. 4006(c)(4), Oct. 21, 1998, 112 Stat 2681; Pub. L. 106-554, Sec. 202, Dec. 21, 2000, 114 Stat. 273; Pub. L. 107-16, Sec. 402(a)(4)(A), June 7, 2001, 115 Stat. 38; Pub. L. 107-22, Sec. 1(b)(2)(C), July 26, 2001, 115 Stat. 196; Pub. L. 108-173, title XII, Sec. 1201(g), Dec. 8, 2003, 117 Stat. 2066; Pub. L. 113-295, Div. B, title II, Sec. 102(c), Dec. 19, 2014, 128 Stat. 4010.)
BACKGROUND NOTES
AMENDMENTS
2014--Subsec. (a)(2)(D)-(F). Pub. L. 113-295, Div. B, Sec. 102(c), amended par. (2) by striking “and” at the end of subpar. (D), by redesignating subpar. (E) as subpar. (F), and by adding a new subpar. (E).
2003--Subsec. (a)(2)(C)-(E). Pub. L. 108-173, Sec. 1201(g), amended par. (2) by redesignating subpar. (C) and (D) as subpar. (D) and (E), and added a new subpar. (C).
2001--Subsec. (a)(2)(D). Pub. L. 107-22, Sec. 1(b)(2)(C), amended subpar. (D) by substituting “Coverdell education savings" for “education individual retirement”.
Subsec. (a)(2)(C). Pub. L. 107-16, Sec. 402(a)(4)(A), amended subpar. (C) by striking “State”.
2000--Subsec. (a)(2)(B). Pub. L. 106-554, Sec. 202(b)(2)(E), amended subpar. (B) by substituting “Archer MSAs” for “medical savings accounts”.
1998--Sec. 6693(a)(2). Pub. L. 105-277, Sec. 4006(c)(4), amended par. (2) by substituting “section” for “Section” in subpars. (C) and (D).
1997--Sec. 6693. Pub. L. 105-34, Sec. 211(e)(2)(C), substituted “certain tax-favored” for “individual retirement” in the heading of Section 6693.
Subsec. (a). Pub. L. 105-34, Sec. 1602(a)(4), added a new sentence at the end.
Subsec. (a)(2)(A)-(C). Pub. L. 105-34, Sec. 211(e)(2)(B), amended par. (2) by striking “and” at the end of subpar. (A); by substituting “, and” for “.” at the end of subpar. (B); and by adding subpar. (C).
Subsec. (a)(2)(B)-(D). Pub. L. 105-34, Sec. 213(c), amended par. (2) by striking “and” at the end of subpar. (B); by substituting “, and” for “.” at the end of subpar. (C); and by adding subpar. (D).
Subsec. (c)(2). Pub. L. 105-34, Sec. 1601(d)(1)(C)(ii), amended par. (2) by inserting “and issuer” after “trustee” in the heading, and by inserting “or issuer” after “trustee”.
1996--Subsec. (a). Pub. L. 104-191, Sec. 301(g), amended subsec. (a). Before amendment, it read as follows:
“(a) The person required by subsection (i) or (l) of section 408 to file a report regarding an individual retirement account or individual retirement annuity at the time and in the manner required by such subsection shall pay a penalty of $50 for each failure unless it is shown that such failure is due to reasonable cause.”
Subsec. (a). Pub. L. 104-188, Sec. 1455(d)(3), added a new sentence at the end.
Subsec. (c). Pub. L. 104-188, Sec. 1421(b)(4)(B), redesignated subsection (c) as subsection (d), and inserted after subsection (b) a new subsection (c).
1988--Pub. L. 100-647, 1011(b)(4)(B)(i), substituted “penalties relating to” for “overstatement of” in section catchline.
Subsec. (b). Pub. L. 100-647, 1011(b)(4)(A), substituted “Penalties relating to” for “Overstatement of designated” in heading and amended text generally. Prior to amendment, text read as follows: “Any individual who--
“(1) is required to furnish information under section 408(o)(4) as to the amount of designated nondeductible contributions made for any taxable year, and
“(2) overstates the amount of such contributions made for such taxable year, shall pay a penalty of $100 for each such overstatement unless it is shown that such overstatement is due to reasonable cause.”
1986--Pub. L. 99-514, 1102(d)(2)(B), inserted “;overstatement of designated nondeductible contributions” in section catchline.
Subsec. (b). Pub. L. 99-514, 1102(d)(1), added subsec. (b). Former subsec. (b) redesignated (c).
Subsec. (c). Pub. L. 99-514, 1102(d)(1), (2)(A), redesignated former subsec. (b) as (c) and substituted “this section” for “subsection (a)”.
1984--Subsec. (a). Pub. L. 98-369 substituted “$50" for “$10”.
1980--Subsec. (a). Pub. L. 96-222 substituted “subsection (i) or (l) of section 408 to file” for “section 408(i) to file”, and “such subsection shall pay” for “section 408(i) shall pay”.
EFFECTIVE DATE OF 2014 AMENDMENTS
Amendments by Pub. L. 113-295, Div. B, Sec. 102(c), effective for taxable years beginning after December 31, 2014.
EFFECTIVE DATE OF 2003 AMENDMENTS
Amendments by Sec. 1201(g) of Pub. L. 108-173 effective for taxable years beginning after December 31, 2003.
EFFECTIVE DATE OF 2001 AMENDMENTS
Amendment by Sec. 1 of Pub. L. 107-22 effective on the date of the enactment of this Act [Enacted: July 26, 2001].
Amendments by Sec. 402 of Pub. L. 107-16 effective for taxable years beginning after December 31, 2001.
Section 901 (Sunset of Provisions of Act) of Pub. L. 107-16, as amended by Pub. L. 107-358 and Pub. L. 111-312, Sec. 101(a), and struck by Pub. L. 112-240, Sec. 101(a)(1) (effective for taxable, plan, or limitation years beginning after Dec. 31, 2012, and estates of decedents dying, gifts made, or generation skipping transfers after Dec. 31, 2012), provided that:
“(a) IN GENERAL.--All provisions of, and amendments made by, this Act shall not apply--
“(1) to taxable, plan, or limitation years beginning after December 31, 2012, or
“(2) in the case of title V, to estates of decedents dying, gifts made, or generation skipping transfers, after December 31, 2012.
“(b) APPLICATION OF CERTAIN LAWS.--The Internal Revenue Code of 1986 and the Employee Retirement Income Security Act of 1974 shall be applied and administered to years, estates, gifts, and transfers described in subsection (a) as if the provisions and amendments described in subsection (a) had never been enacted.
“(c) EXCEPTION.-Subsection (a) shall not apply to section 803 (relating to no federal income tax on restitution received by victims of the Nazi regime or their heirs or estates).”
QUALIFIED TUITION PROGRAMS
Section 1304(a) of Pub. L. 109-280 provided that:
“(a) Permanent Extension of Modifications- Section 901 of the Economic Growth and Tax Relief Reconciliation Act of 2001 (relating to sunset provisions) shall not apply to section 402 of such Act (relating to modifications to qualified tuition programs).”
EFFECTIVE DATE OF 1998 AMENDMENTS
Amendments by Sec. 4006(c)(4) of Pub. L. 105-277 effective on the date of the enactment of this Act [Oct. 21, 1998].
EFFECTIVE DATE OF 1997 AMENDMENTS
Amendments by Sec. 211(e)(2) of Pub. L. 105-34 effective on January 1, 1998.
Amendments by Sec. 213(c) of Pub. L. 105-34 applicable to taxable years beginning after December 31, 1997.
Amendment by Sec. 1601(d)(1)(C)(ii) of Pub. L. 105-34 effective as if included in the provisions of the Small Business Job Protection Act of 1996 to which it relates.
Amendment by Sec. 1602(a)(4) of Pub. L. 105-34 effective as if included in the provisions of the Health Insurance Portability and Accountability Act of 1996 to which it relates.
EFFECTIVE DATE OF 1996 AMENDMENT
Amendment by Pub. L. 104-191 effective for taxable years beginning after Dec. 31, 1996.
Section 1455(e) of Pub. L. 104-188 provided that: “The amendments made by this section shall apply to returns, reports, and other statements the due date for which (determined without regard to extensions) is after December 31, 1996.”
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by 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
Amendment by Pub. L. 99-514 applicable to contributions and distributions for taxable years beginning after Dec. 31, 1986, see section 1102(g) of Pub. L. 99-514, set out as a note under section 219 of this title.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 applicable to failures occurring after July 18, 1984, see section 147(d)(2) of Pub. L. 98-369, set out as a note under section 219 of this title.
EFFECTIVE DATE OF 1980 AMENDMENT
Section 101(b)(1)(F) of Pub. L. 96-222 provided that: “The amendment made by subparagraph (I) of subsection (a)(10) [probably means subpar. (H) of subsec. (a)(10), which amended this section] shall apply with respect to failures occurring after the date of the enactment of this Act [Apr. 1, 1980].”
EFFECTIVE DATE
Section effective Jan. 1, 1975, see section 2002(i)(2) of Pub. L. 93-406, set out as a note under section 4973 of this title.
PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989
For provisions directing that if any amendments made by section 1102 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, set out as a note under section 401 of this title.