Internal Revenue Code · 26 U.S.C.
§ 6707A. Penalty for failure to include reportable transaction information with return
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. § 6707A
At a glance
Read from the text, the source credit and the official notes. Not part of the law.
- Status
- In force
- Added
- October 22, 2004 by Pub. L. 108–357
- Last amended
- September 27, 2010 by Pub. L. 111–240
- Amendments
- 2 dated changes in the source credit
- Length
- 6 subsections · 680 words · about 3 min to read
- Defines
- 2 terms
- Cross-references
- cites 3; cited by 7 Code sections and 8 other regulations
- Regulations
- 1 issued under this section
Any person who fails to include on any return or statement any information with respect to a reportable transaction which is required under section 6011 to be included with such return or statement shall pay a penalty in the amount determined under subsection (b).
Except as otherwise provided in this subsection, the amount of the penalty under subsection (a) with respect to any reportable transaction shall be 75 percent of the decrease in tax shown on the return as a result of such transaction (or which would have resulted from such transaction if such transaction were respected for Federal tax purposes).
The term “reportable transaction” means any transaction with respect to which information is required to be included with a return or statement because, as determined under regulations prescribed under section 6011, such transaction is of a type which the Secretary determines as having a potential for tax avoidance or evasion.
The term “listed transaction” means a reportable transaction which is the same as, or substantially similar to, a transaction specifically identified by the Secretary as a tax avoidance transaction for purposes of section 6011.
Notwithstanding any other provision of law, any determination under this subsection may not be reviewed in any judicial proceeding.
The penalty imposed by this section shall be in addition to any other penalty imposed by this title.
(Added Pub. L. 108–357, title VIII, § 811(a), Oct. 22, 2004, 118 Stat. 1575; amended Pub. L. 110–172, § 11(a)(41), Dec. 29, 2007, 121 Stat. 2488; Pub. L. 111–240, title II, § 2041(a), Sept. 27, 2010, 124 Stat. 2560.)
Terms defined here
Where the text says “the term … means”. Select a term to jump to its definition.
Regulations under this section
Treasury regulations (26 CFR) issued under § 6707A
Cross-references
Computed from the citations in the text of Title 26 and 26 CFR.
This section cites 3 other sections
- § 6011 General requirement of return, statement, or list
- § 6662A Imposition of accuracy-related penalty on understatements with respect to reportable transactions
- § 6662(h) Imposition of accuracy-related penalty on underpayments
Cited by 7 Code sections
- § 4965(e)(1)(B) Excise tax on certain tax-exempt entities entering into prohibited tax shelter transactions
- § 6111(b)(2) Disclosure of reportable transactions
- § 6112(a) Material advisors of reportable transactions must keep lists of advisees, etc.
- § 6501(c)(10) Limitations on assessment and collection
- § 6662A(d) Imposition of accuracy-related penalty on understatements with respect to reportable transactions
- § 6664(d)(3)(C) Definitions and special rules
- § 6707(c) Failure to furnish information regarding reportable transactions
Cited in 8 regulations not issued under it
- § 53.4965-3 Prohibited tax shelter transactions.
- § 301.6011(g)-1 Disclosure by taxable party to the tax-exempt entity.
- § 301.6404-4 Suspension of interest and certain penalties when the Internal Revenue Service does not timely contact the taxpayer.
- § 301.6501(c)-1 Exceptions to general period of limitations on assessment and collection.
- § 301.6707-1 Failure to furnish information regarding reportable transactions.
- § 301.6708-1 Failure to maintain lists of advisees with respect to reportable transactions.
- § 301.6751(b)-1 Supervisory and higher level official approval for penalties.
- § 301.7803-2 Internal Revenue Service Independent Office of Appeals resolution of Federal tax controversies without litigation.
Amendment history
From the source credit and the official notes, newest first.
Where it sits in the Code
- Subtitle F Procedure and Administration
- Chapter 68 ADDITIONS TO THE TAX, ADDITIONAL AMOUNTS, AND ASSESSABLE PENALTIES
- Subchapter B Assessable Penalties
- Part I GENERAL PROVISIONS
Nearby sections
- § 6704 Failure to keep records necessary to meet reporting requirements under section 6047(d)
- § 6705 Failure by broker to provide notice to payors
- § 6706 Original issue discount information requirements
- § 6707 Failure to furnish information regarding reportable transactions
- § 6707A Penalty for failure to include reportable transaction information with return
- § 6708 Failure to maintain lists of advisees with respect to reportable transactions
- § 6709 Penalties with respect to mortgage credit certificates
- § 6710 Failure to disclose that contributions are nondeductible
- § 6711 Failure by tax-exempt organization to disclose that certain information or service available from Federal Government
Official notes
Show the Law Revision Counsel's notes (amendments, effective dates)
Editorial Notes
References in Text
Sections 13 and 15(d) of the Securities Exchange Act of 1934, referred to in subsec. (e)(1), are classified to sections 78m and 78o(d), respectively, of Title 15, Commerce and Trade.
Amendments
2010—Subsec. (b). Pub. L. 111–240 amended subsec. (b) generally. Prior to amendment, subsec. (b) specified the amount of the penalty under subsec. (a), both in general and with respect to a listed transaction, in the case of a natural person or in any other case.
2007—Subsec. (e)(2)(C). Pub. L. 110–172 substituted “section 6662A(e)(2)(B)” for “section 6662A(e)(2)(C)”.
Statutory Notes and Related Subsidiaries
Effective Date of 2010 Amendment
Pub. L. 111–240, title II, § 2041(b), Sept. 27, 2010, 124 Stat. 2560, provided that: “The amendment made by this section [amending this section] shall apply to penalties assessed after December 31, 2006.”
Effective Date
Pub. L. 108–357, title VIII, § 811(c), Oct. 22, 2004, 118 Stat. 1577, as amended by Pub. L. 109–135, title IV, § 403(w), Dec. 21, 2005, 119 Stat. 2629, provided that: “The amendments made by this section [enacting this section] shall apply to returns and statements the due date for which is after the date of the enactment of this Act [Oct. 22, 2004] and which were not filed before such date.”
Report
Pub. L. 108–357, title VIII, § 811(d), Oct. 22, 2004, 118 Stat. 1577, provided that:
“The Commissioner of Internal Revenue shall annually report to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate—“(1) a summary of the total number and aggregate amount of penalties imposed, and rescinded, under section 6707A of the Internal Revenue Code of 1986, and“(2) a description of each penalty rescinded under section 6707(c) of such Code and the reasons therefor.”