Internal Revenue Code · 26 U.S.C.

§ 6698. Failure to file partnership return

In force Text current through Public Law 119-121 (October 9, 2026) release point 119-121

Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).

Cite as 26 U.S.C. § 6698

At a glance

Read from the text, the source credit and the official notes. Not part of the law.

Status: In force
Added: November 6, 1978 by Pub. L. 95–600
Last amended: March 23, 2018 by Pub. L. 115–141
Amendments: 6 dated changes in the source credit
Length: 5 subsections · 434 words · about 2 min to read
Cross-references: cites 4; cited by 0 Code sections and 3 other regulations

¶(a) General rule In addition to the penalty imposed by section 7203 (relating to willful failure to file return, supply information, or pay tax), if any partnership required to file a return under section 6031, or a partnership adjustment tracking report under section 6226(b)(4)(A), for any taxable year—

¶(1) fails to file such return, or such report, at the time prescribed therefor (determined with regard to any extension of time for filing), or

¶(2) files a return or a report which fails to show the information required under section 6031 or 6226(b)(4)(A), respectively,

such partnership shall be liable for a penalty determined under subsection (b) for each month (or fraction thereof) during which such failure continues (but not to exceed 12 months), unless it is shown that such failure is due to reasonable cause.

¶(b) Amount per month For purposes of subsection (a), the amount determined under this subsection for any month is the product of—

¶(1) $195, multiplied by

¶(2) the number of persons who were partners in the partnership during any part of the taxable year.

¶(c) Assessment of penalty

The penalty imposed by subsection (a) shall be assessed against the partnership.

¶(d) 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 subsection (a).

¶(e) Adjustment for inflation

¶(1) In general

In the case of any return required to be filed in a calendar year beginning after 2014, the $195 dollar amount under subsection (b)(1) shall be increased by an amount equal to such dollar amount multiplied by the cost-of-living adjustment determined under section 1(f)(3) for the calendar year determined by substituting “calendar year 2013” for “calendar year 2016” in subparagraph (A)(ii) thereof.

¶(2) Rounding

If any amount adjusted under paragraph (1) is not a multiple of $5, such amount shall be rounded to the next lowest multiple of $5.

(Added Pub. L. 95–600, title II, § 211(a), Nov. 6, 1978, 92 Stat. 2817; amended Pub. L. 110–142, § 8(a), (b), Dec. 20, 2007, 121 Stat. 1806; Pub. L. 110–458, title I, § 127(a), Dec. 23, 2008, 122 Stat. 5116; Pub. L. 111–92, § 16(a), Nov. 6, 2009, 123 Stat. 2996; Pub. L. 113–295, div. B, title II, § 208(d), Dec. 19, 2014, 128 Stat. 4073; Pub. L. 115–97, title I, § 11002(d)(1)(NN), Dec. 22, 2017, 131 Stat. 2061; Pub. L. 115–141, div. U, title II, § 206(n)(2), title IV, § 401(a)(299)(D), (313), Mar. 23, 2018, 132 Stat. 1182, 1198, 1199.)

Cross-references

Computed from the citations in the text of Title 26 and 26 CFR.

This section cites 4 other sections

Cited in 3 regulations not issued under it

Amendment history

From the source credit and the official notes, newest first.

March 23, 2018Amended by Pub. L. 115–141Parts changed in 2018: (a) (a)(1) (a)(2) (b)(2) (e)(1)
December 22, 2017Amended by Pub. L. 115–97Parts changed in 2017: (e)(1)
December 19, 2014Amended by Pub. L. 113–295Parts changed in 2014: (e)
November 6, 2009Amended by Pub. L. 111–92Parts changed in 2009: (b)(1)
December 23, 2008Amended by Pub. L. 110–458Parts changed in 2008: (b)(1)
December 20, 2007Amended by Pub. L. 110–142Parts changed in 2007: (a) (b)(1)
November 6, 1978Added by Pub. L. 95–600

Where it sits in the Code

Nearby sections

Official notes

Show the Law Revision Counsel's notes (amendments, effective dates)

Inflation Adjusted Items for Certain Years

For inflation adjustment of certain items in this section, see Revenue Procedures listed in a table under section 1 of this title.

Editorial Notes

Codification

Another section 6698, formerly section 6694, relating to failure to file information with respect to carryover basis property, which was added by Pub. L. 94–455, § 2005(d)(2), was renumbered section 6698 by Pub. L. 95–600, renumbered section 6698A by Pub. L. 96–222, and repealed by Pub. L. 96–223.

Amendments

2018—Subsec. (a). Pub. L. 115–141, § 206(n)(2)(A), inserted “, or a partnership adjustment tracking report under section 6226(b)(4)(A),” after “under section 6031” in introductory provisions.

Subsec. (a)(1). Pub. L. 115–141, § 206(n)(2)(B), inserted “, or such report,” after “such return”.

Subsec. (a)(2). Pub. L. 115–141, § 206(n)(2)(C), inserted “or a report” after “a return” and “or 6226(b)(4)(A), respectively” after “section 6031”.

Subsec. (b)(2). Pub. L. 115–141, § 401(a)(313), inserted period at end.

Subsec. (e)(1). Pub. L. 115–141, § 401(a)(299)(D), inserted “an amount equal to” after “increased by” and “for the calendar year” after “section 1(f)(3)”.

2017—Subsec. (e)(1). Pub. L. 115–97 substituted “for ‘calendar year 2016’ in subparagraph (A)(ii)” for “for ‘calendar year 1992’ in subparagraph (B)”.

2014—Subsec. (e). Pub. L. 113–295 added subsec. (e).

2009—Subsec. (b)(1). Pub. L. 111–92 substituted “$195” for “$89”.

2008—Subsec. (b)(1). Pub. L. 110–458 substituted “$89” for “$85”.

2007—Subsec. (a). Pub. L. 110–142, § 8(a), substituted “12 months” for “5 months” in concluding provisions.

Subsec. (b)(1). Pub. L. 110–142, § 8(b), substituted “$85” for “$50”.

Effective Date of 2018 Amendment

Amendment by section 206(n)(2) of Pub. L. 115–141 effective as if included in section 1101 of Pub. L. 114–74, see section 207 of Pub. L. 115–141, set out as a note under section 6031 of this title.

Effective Date of 2017 Amendment

Amendment by Pub. L. 115–97 applicable to taxable years beginning after Dec. 31, 2017, see section 11002(e) of Pub. L. 115–97, set out as a note under section 1 of this title.

Effective Date of 2014 Amendment

Amendment by Pub. L. 113–295 applicable to returns required to be filed, and statements required to be furnished, after Dec. 31, 2014, see section 208(h) of Pub. L. 113–295, set out as a note under section 6651 of this title.

Effective Date of 2009 Amendment

Pub. L. 111–92, § 16(b), Nov. 6, 2009, 123 Stat. 2996, provided that: “The amendments made by this section [amending this section and section 6699 of this title] shall apply to returns for taxable years beginning after December 31, 2009.”

Effective Date of 2008 Amendment

Pub. L. 110–458, title I, § 127(b), Dec. 23, 2008, 122 Stat. 5116, provided that: “The amendment made by subsection (a) [amending this section] shall apply to returns required to be filed after December 31, 2008.”

Effective Date of 2007 Amendment

Pub. L. 110–142, § 8(d), Dec. 20, 2007, 121 Stat. 1807, provided that: “The amendments made by subsections (a) and (b) [amending this section] shall apply to returns required to be filed after the date of the enactment of this Act [Dec. 20, 2007].”

Effective Date

Pub. L. 95–600, title II, § 211(c), Nov. 6, 1978, 92 Stat. 2818, provided that: “The amendments made by this section [enacting this section] shall apply with respect to returns for taxable years beginning after December 31, 1978.”

Modification of Penalty for Failure To File Partnership Returns

Pub. L. 110–141, § 2, Dec. 19, 2007, 121 Stat. 1802, provided that: “For any return of a partnership required to be filed under section 6031 of the Internal Revenue Code of 1986 for a taxable year beginning in 2008, the dollar amount in effect under section 6698(b)(1) of such Code shall be increased by $1.”