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Sec. 6708. Failure To Maintain Lists Of Advisees With Respect To Reportable Transactions

I.R.C. § 6708(a) Imposition Of Penalty
I.R.C. § 6708(a)(1) In General
If any person who is required to maintain a list under section 6112(a) fails to make such list available upon written request to the Secretary in accordance with section 6112(b) within 20 business days after the date of such request, such person shall pay a penalty of $10,000 for each day of such failure after such 20th day.
I.R.C. § 6708(a)(2) Reasonable Cause Exception
No penalty shall be imposed by paragraph (1) with respect to the failure on any day if such failure is due to reasonable cause.
I.R.C. § 6708(b) Penalty In Addition To Other Penalties
The penalty imposed by this section shall be in addition to any other penalty provided by law.
(Added Pub. L. 98-369, div. A, title I, 142(b), July 18, 1984, 98 Stat. 682, and amended Pub. L. 99-514, title XV, 1534(a), Oct. 22, 1986, 100 Stat. 2750; Pub. L. 108-357, title VIII, 815(b), 817(a), Oct. 22, 2004, 118 Stat. 1418.)
Background Notes
Codification
Another section 6708 was renumbered section 6709 of this title.
Amendments
2004--Sec. 6708. Pub. L. 108-357, Sec. 815(b)(5), amended the heading for Sec. 6708. Prior to amendment the heading read as follows:
“Failure to maintain lists of investors in potentially abusive tax shelters”.
Subsec. (a). Pub. L. 108-357, Sec. 817(a), amended subsec. (a). Prior to amendment it read as follows:
“(a) In general
“Any person who fails to meet any requirement imposed by section 6112 shall pay a penalty of $50 for each person with respect to whom there is such a failure, unless it is shown that such failure is due to reasonable cause and not due to willful neglect. The maximum penalty imposed under this subsection for any calendar year shall not exceed $100,000.”
1986--Subsec. (a). Pub. L. 99-514 substituted “$100,000” for “$50,000”.
Effective Date of 2004 Amendments
Amendment by Section 815(b) of Pub. L. 108-357 applicable to transactions with respect to which material aid, assistance, or advice referred to in section 6111(b)(1)(A)(i) of the Internal Revenue Code of 1986 (as added by this section) is provided after the date of the enactment of this Act [Encted: Oct. 22, 2004].
Amendment by Section 817(a) of Pub. L. 108-357 applicable to requests made after the date of the enactment of this Act [Enacted: Oct. 22, 2004].
Effective Date of 1986 Amendment
Section 1534(b) of Pub. L. 99-514 provided that: “The amendments made by this section [amending this section] shall apply to failures occurring or continuing after the date of the enactment of this Act [Oct. 22, 1986].”
REPORT ON TAX SHELTER PENALTIES AND CERTAIN OTHER ENFORCEMENT ACTIONS
Section 2103 of Pub. L. 111-240 provided:
“(a) In General.—The Commissioner of Internal Revenue, in consultation with the Secretary of the Treasury, shall submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate an annual report on the penalties assessed by the Internal Revenue Service during the preceding year under each of the following provisions of the Internal Revenue Code of 1986:
“(1) Section 6662A (relating to accuracy-related penalty on understatements with respect to reportable transactions).
“(2) Section 6700(a) (relating to promoting abusive tax shelters).
“(3) Section 6707 (relating to failure to furnish information regarding reportable transactions).
“(4) Section 6707A (relating to failure to include reportable transaction information with return).
“(5) Section 6708 (relating to failure to maintain lists of advisees with respect to reportable transactions).
“(b) Additional Information.—The report required under subsection (a) shall also include information on the following with respect to each year:
“(1) Any action taken under section 330(b) of title 31, United States Code, with respect to any reportable transaction (as defined in section 6707A(c) of the Internal Revenue Code of 1986).
“(2) Any extension of the time for assessment of tax enforced, or assessment of any amount under such an extension, under paragraph (10) of section 6501(c) of the Internal Revenue Codeof 1986.
“(c) Date of Report.—The first report required under subsection (a) shall be submitted not later than December 31, 2010.”
Effective Date
Section applicable to any interest which is first sold to any investor after Aug. 31, 1984, see section 142(d) of Pub. L. 98-369, set out as a note under section 6112 of this title.