I.R.C. § 6706(a) Failure To Show Information On Debt Instrument
In the case of a failure to set forth on a debt instrument the information required
to be set forth on such instrument under section 1275(c)(1),
unless it is shown that such failure is due to reasonable cause and not to willful
neglect, the issuer shall pay a penalty of $50 for each instrument with respect to
which such a failure exists.
I.R.C. § 6706(b) Failure To Furnish Information To Secretary
Any issuer who fails to furnish information required under section 1275(c)(2)
with respect to any issue of debt instruments on the date prescribed
therefor (determined with regard to any extension of time for filing)
shall pay a penalty equal to 1 percent of the aggregate issue price of such issue,
unless it is shown that such failure is due to reasonable
cause and not willful neglect. The amount of the penalty imposed under the preceding
sentence with respect to any issue of debt instruments shall not exceed $50,000 for
I.R.C. § 6706(c) Deficiency Procedures Not To Apply
Subchapter B of chapter 63 (relating to deficiency procedures for income, estate,
gift, and certain excise taxes) shall not apply in respect of the assessment or collection
of any penalty imposed by this section.
(Added Pub. L. 98-369, div. A, title I, 41(c)(1), July 18, 1984, 98 Stat. 555.)
Section effective on the day 30 days after July 18, 1984, see section 44(h) of Pub. L. 98-369, set out as a note under section 1271 of this title.
Section Referred to in Other Sections
This section is referred to in section 1275 of this title.