Internal Revenue Code · 26 U.S.C.
§ 6721. Failure to file correct information returns
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. § 6721
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, 1986 by Pub. L. 99–514
- Last amended
- March 23, 2018 by Pub. L. 115–141
- Amendments
- 10 dated changes in the source credit
- Length
- 6 subsections · 1,321 words · about 6 min to read
- Cross-references
- cites 7; cited by 5 Code sections and 31 other regulations
- Regulations
- 2 issued under this section
In the case of a failure described in paragraph (2) by any person with respect to an information return, such person shall pay a penalty of $250 for each return with respect to which such a failure occurs, but the total amount imposed on such person for all such failures during any calendar year shall not exceed $3,000,000.
Subparagraph (A) shall not apply with respect to any incorrect dollar amount to the extent that such error relates to an amount with respect to which an election is made under section 6722(c)(3)(B).
The Secretary may issue regulations to prevent the abuse of the safe harbor under this paragraph, including regulations providing that this paragraph shall not apply to the extent necessary to prevent any such abuse.
A person meets the gross receipts test of this paragraph for any calendar year if the average annual gross receipts of such person for the most recent 3 taxable years ending before such calendar year do not exceed $5,000,000.
For purposes of subparagraph (A), the rules of paragraphs (2) and (3) of section 448(c) shall apply.
In the case of any failure relating to a return required to be filed in a calendar year beginning after 2014, each of the dollar amounts under subsections (a), (b), (d) (other than paragraph (2)(A) thereof), and (e) 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 2011” for “calendar year 2016” in subparagraph (A)(ii) thereof.
(Added Pub. L. 99–514, title XV, § 1501(a), Oct. 22, 1986, 100 Stat. 2732; amended Pub. L. 100–690, title VII, § 7601(a)(2)(A), Nov. 18, 1988, 102 Stat. 4503; Pub. L. 101–239, title VII, § 7711(a), Dec. 19, 1989, 103 Stat. 2388; Pub. L. 101–508, title XI, § 11318(b), Nov. 5, 1990, 104 Stat. 1388–459; Pub. L. 109–280, title XII, § 1211(b)(2), Aug. 17, 2006, 120 Stat. 1073; Pub. L. 111–240, title II, § 2102(a)–(f), Sept. 27, 2010, 124 Stat. 2561, 2562; Pub. L. 113–295, div. B, title II, § 208(f), Dec. 19, 2014, 128 Stat. 4074; Pub. L. 114–27, title VIII, § 806(a)–(d), June 29, 2015, 129 Stat. 416, 417; Pub. L. 114–113, div. Q, title II, § 202(a), (d), Dec. 18, 2015, 129 Stat. 3076, 3077; Pub. L. 115–97, title I, § 11002(d)(1)(PP), Dec. 22, 2017, 131 Stat. 2061; Pub. L. 115–141, div. U, title I, § 101(f)(2), title IV, § 401(a)(299)(F), Mar. 23, 2018, 132 Stat. 1161, 1198.)
Regulations under this section
Treasury regulations (26 CFR) issued under § 6721
Cross-references
Computed from the citations in the text of Title 26 and 26 CFR.
This section cites 7 other sections
- § 6724(a) Waiver; definitions and special rules
- § 6722(c)(3)(B) Failure to furnish correct payee statements
- § 448(c) Limitation on use of cash method of accounting
- § 6045(a) Returns of brokers
- § 6050I(a) Returns relating to cash received in trade or business, etc.
- § 6050V Returns relating to applicable insurance contracts in which certain exempt organizations hold interests
- § 1(f)(3) Tax imposed
Cited by 5 Code sections
- § 1060(f) Special allocation rules for certain asset acquisitions
- § 6045(g)(2)(B)(iii) Returns of brokers
- § 6047(h)(1) Information relating to certain trusts and annuity plans
- § 6722(d)(2) Failure to furnish correct payee statements
- § 6724(c) Waiver; definitions and special rules
Cited in 31 regulations not issued under it
- § 1.671-4 Method of reporting.
- § 1.671-5 Reporting for widely held fixed investment trusts.
- § 1.1441-1 Requirement for the deduction and withholding of tax on payments to foreign persons.
- § 1.6035-1 Basis information to persons acquiring property from decedent.
- § 1.6045-1 Returns of information of brokers and barter exchanges.
- § 1.6045-2 Furnishing statement required with respect to certain substitute payments.
- § 1.6045-4 Information reporting on real estate transactions.
- § 1.6045-5 Information reporting on payments to attorneys.
- § 1.6045B-1 Returns relating to actions affecting basis of securities.
- § 1.6050H-2 Time, form, and manner of reporting interest received on qualified mortgage.
- § 1.6050I-1 Returns relating to cash in excess of $10,000 received in a trade or business.
- § 1.6050I-2 Returns relating to cash in excess of $10,000 received as bail by court clerks.
- § 1.6050K-1 Returns relating to sales or exchanges of certain partnership interests.
- § 1.6050L-2 Information returns by donees relating to qualified intellectual property contributions.
- § 1.6050P-1 Information reporting for discharges of indebtedness by certain entities.
- § 1.6050S-1 Information reporting for qualified tuition and related expenses.
- § 1.6050S-3 Information reporting for payments of interest on qualified education loans.
- § 1.6050W-1 Information reporting for payments made in settlement of payment card and third party network transactions.
- § 1.6050Y-2 Information reporting by acquirers for reportable policy sale payments.
- § 1.6050Y-3 Information reporting by 6050Y(b) issuers for reportable policy sales and transfers of life insurance contracts to foreign persons.
- § 1.6050Y-4 Information reporting by payors for reportable death benefits.
- § 1.6055-1 Information reporting for minimum essential coverage.
- § 31.3406(j)-1 Taxpayer Identification Number (TIN) matching program.
- § 31.6051-1 Statements for employees.
Show 7 more
- § 31.6051-2 Information returns on Form W-3 and Social Security Administration copies of Forms W-2.
- § 301.1474-1 Required use of electronic form for financial institutions filing Form 1042, Form 1042-S, or Form 8966.
- § 301.6011-2 Required use of electronic form.
- § 301.6056-1 Rules relating to reporting by applicable large employers on health insurance coverage offered under employer-sponsored plans.
- § 301.6109-1 Identifying numbers.
- § 301.6723-1 Failure to comply with other information reporting requirements.
- § 301.6724-1 Reasonable cause.
Amendment history
From the source credit and the official notes, newest first.
- Amended by Pub. L. 115–141Parts changed in 2018: (c)(3)(A)(iii) (f)(1)
- Amended by Pub. L. 115–97Parts changed in 2017: (f)(1)
- Amended by Pub. L. 114–113Parts changed in 2015: (a)(1) (b)(1)(A) (b)(1)(B) (b)(2)(A) (b)(2)(B) (c) (c)(1) (c)(3) (d)(1)(A) (d)(1)(B) (d)(1)(C) (e)(2) (e)(3)(A)
- Amended by Pub. L. 114–27
- Amended by Pub. L. 113–295Parts changed in 2014: (f)(1)
- Amended by Pub. L. 111–240Parts changed in 2010: (a)(1) (b)(1)(A) (b)(1)(B) (b)(2)(A) (b)(2)(B) (d)(1) (d)(1)(A) (d)(1)(B) (d)(1)(C) (e)(2) (e)(3)(A) (f)
- Amended by Pub. L. 109–280Parts changed in 2006: (e)(2)(D)
- Amended by Pub. L. 101–508Parts changed in 1990: (e)(2)
- Amended by Pub. L. 101–239
- Amended by Pub. L. 100–690Parts changed in 1988: (b)(1)(A)
- Added by Pub. L. 99–514
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 II FAILURE TO COMPLY WITH CERTAIN INFORMATION REPORTING REQUIREMENTS
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
Amendments
2018—Subsec. (c)(3)(A)(iii). Pub. L. 115–141, § 101(f)(2), substituted “the information return” for “any information return”.
Subsec. (f)(1). Pub. L. 115–141, § 401(a)(299)(F), inserted “an amount equal to” after “increased by” and “for the calendar year” after “section 1(f)(3)”.
2017—Subsec. (f)(1). Pub. L. 115–97 substituted “for ‘calendar year 2016’ in subparagraph (A)(ii)” for “for ‘calendar year 1992’ in subparagraph (B)”.
2015—Subsec. (a)(1). Pub. L. 114–27, § 806(a), substituted “$250” for “$100” and “$3,000,000” for “$1,500,000”.
Subsec. (b)(1)(A). Pub. L. 114–27, § 806(b)(1)(A), (B), substituted “$50” for “$30” and “$250” for “$100”.
Subsec. (b)(1)(B). Pub. L. 114–27, § 806(b)(1)(C), substituted “$500,000” for “$250,000”.
Subsec. (b)(2)(A). Pub. L. 114–27, § 806(b)(2)(A), (B), substituted “$100” for “$60” and “$250” for “$100”.
Subsec. (b)(2)(B). Pub. L. 114–27, § 806(b)(2)(C), substituted “$1,500,000” for “$500,000”.
Subsec. (c). Pub. L. 114–113, § 202(d)(1), substituted “Exceptions for certain de minimis failures” for “Exception for de minimis failures to include all required information” in heading.
Subsec. (c)(1). Pub. L. 114–113, § 202(d)(2), substituted “Exception for de minimis failure to include all required information” for “In general” in heading.
Subsec. (c)(3). Pub. L. 114–113, § 202(a), added par. (3).
Subsec. (d)(1)(A). Pub. L. 114–27, § 806(c)(1), substituted “$1,000,000” for “$500,000” and “$3,000,000” for “$1,500,000”.
Subsec. (d)(1)(B). Pub. L. 114–27, § 806(c)(2), substituted “$175,000” for “$75,000” and “$500,000” for “$250,000”.
Subsec. (d)(1)(C). Pub. L. 114–27, § 806(c)(3), substituted “$500,000” for “$200,000” and “$1,500,000” for “$500,000”.
Subsec. (e)(2). Pub. L. 114–27, § 806(d)(1), substituted “$500” for “$250”.
Subsec. (e)(3)(A). Pub. L. 114–27, § 806(d)(2), substituted “$3,000,000” for “$1,500,000”.
2014—Subsec. (f)(1). Pub. L. 113–295 substituted “In the case of any failure relating to a return required to be filed in a calendar year beginning after 2014” for “For each fifth calendar year beginning after 2012”.
2010—Subsec. (a)(1). Pub. L. 111–240, § 2102(a), substituted “$100” for “$50” and “$1,500,000” for “$250,000”.
Subsec. (b)(1)(A). Pub. L. 111–240, § 2102(a)(1), (b)(1), substituted “$30” for “$15” and “$100” for “$50”.
Subsec. (b)(1)(B). Pub. L. 111–240, § 2102(b)(2), substituted “$250,000” for “$75,000”.
Subsec. (b)(2)(A). Pub. L. 111–240, § 2102(a)(1), (c)(1), substituted “$60” for “$30” and “$100” for “$50”.
Subsec. (b)(2)(B). Pub. L. 111–240, § 2102(c)(2), substituted “$500,000” for “$150,000”.
Subsec. (d)(1). Pub. L. 111–240, § 2102(d)(2), substituted “such calendar year” for “such taxable year” in introductory provisions.
Subsec. (d)(1)(A). Pub. L. 111–240, § 2102(a)(2), (d)(1)(A), substituted “$500,000” for “$100,000” and “$1,500,000” for “$250,000”.
Subsec. (d)(1)(B). Pub. L. 111–240, § 2102(b)(2), (d)(1)(B), substituted “$75,000” for “$25,000” and “$250,000” for “$75,000”.
Subsec. (d)(1)(C). Pub. L. 111–240, § 2102(c)(2), (d)(1)(C), substituted “$200,000” for “$50,000” and “$500,000” for “$150,000”.
Subsec. (e)(2). Pub. L. 111–240, § 2102(e), substituted “$250” for “$100” in introductory provisions.
Subsec. (e)(3)(A). Pub. L. 111–240, § 2102(a)(2), substituted “$1,500,000” for “$250,000”.
Subsec. (f). Pub. L. 111–240, § 2102(f), added subsec. (f).
2006—Subsec. (e)(2)(D). Pub. L. 109–280, which directed the addition of subpar. (D) to section 6721(e)(2), without specifying the act to be amended, was executed by making the addition to subsec. (e)(2) of this section, which is section 6721 of the Internal Revenue Code of 1986, to reflect the probable intent of Congress.
1990—Subsec. (e)(2). Pub. L. 101–508 inserted “6050I,” after “6050H,” and struck out “or” at end of subpar. (A), substituted “or” for “and” at end of subpar. (B), and added subpar. (C).
1989—Pub. L. 101–239 substituted “correct” for “certain” in section catchline and amended text generally, substituting subsecs. (a) to (e) for former subsec. (a) stating general rule and subsec. (b) relating to penalty in case of intentional disregard.
1988—Subsec. (b)(1)(A). Pub. L. 100–690 inserted “(or, if greater, in the case of a return filed under section 6050I, 10 percent of the taxable income derived from the transaction)” after “reported”.
Statutory Notes and Related Subsidiaries
Effective Date of 2018 Amendment
Amendment by section 101(f)(2) of Pub. L. 115–141 effective as if included in the provision of the Protecting Americans from Tax Hikes Act of 2015, div. Q of Pub. L. 114–113, to which such amendment relates, see section 101(s) of Pub. L. 115–141, set out as a note under section 24 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 2015 Amendment
Amendment by Pub. L. 114–113 applicable to returns required to be filed, and payee statements required to be provided, after Dec. 31, 2016, see section 202(e) of Pub. L. 114–113, set out as a note under section 6045 of this title.
Pub. L. 114–27, title VIII, § 806(f), June 29, 2015, 129 Stat. 418, provided that: “The amendments made by this section [amending this section and section 6722 of this title] shall apply with respect to returns and statements required to be filed after December 31, 2015.”
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 2010 Amendment
Pub. L. 111–240, title II, § 2102(h), Sept. 27, 2010, 124 Stat. 2564, as amended by Pub. L. 113–295, div. A, title II, § 207(a)(1), Dec. 19, 2014, 128 Stat. 4027, provided that: “The amendments made by this section [amending this section and section 6722 of this title] shall apply with respect to information returns required to be filed, and payee statements required to be furnished, on or after January 1, 2011.”
Effective Date of 2006 Amendment
Amendment by Pub. L. 109–280 applicable to acquisitions of contracts after Aug. 17, 2006, see section 1211(d) of Pub. L. 109–280, set out as an Effective Date note under section 6050V of this title.
Effective Date of 1990 Amendment
Amendment by Pub. L. 101–508 applicable to amounts received after Nov. 5, 1990, see section 11318(e)(1) of Pub. L. 101–508, set out as a note under section 6050I of this title.
Effective Date of 1989 Amendment
Pub. L. 101–239, title VII, § 7711(c), Dec. 19, 1989, 103 Stat. 2393, provided that: “The amendments made by this section [amending this section and sections 6722 to 6724 and 7205 of this title and repealing sections 6017A, 6676, and 6687 of this title] shall apply to returns and statements the due date for which (determined without regard to extensions) is after December 31, 1989.”
Effective Date of 1988 Amendment
Amendment by Pub. L. 100–690 applicable to actions after Nov. 18, 1988, see section 7601(a)(3) of Pub. L. 100–690, set out as a note under section 6050I of this title.
Effective Date
Pub. L. 99–514, title XV, § 1501(e), Oct. 22, 1986, 100 Stat. 2741, provided that: “The amendments made by this section [enacting this section and sections 6722 to 6724 of this title, amending sections 219, 6031, 6033 to 6034A, 6041, 6042 to 6045, 6047, 6049, 6050A to 6050C, 6050E to 6050I, 6050K, 6052, 6057, 6058, 6652, and 6676 of this title, and repealing section 6678 of this title] shall apply to returns the due date for which (determined without regard to extensions) is after December 31, 1986, except that the amendments made by subsections (c)(2), (c)(3), and (c)(5) [amending sections 6042, 6044, and 6049 of this title] shall apply to returns the due [date] for which (determined without regard to extensions) is after the date of the enactment of this Act [Oct. 22, 1986].”