Internal Revenue Code – Section 6698

Sec. 6698. Failure to file partnership return

-STATUTE-

(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 for

any taxable year -

(1) fails to file such return at the time prescribed therefor

(determined with regard to any extension of time for filing), or

(2) files a return which fails to show the information required

under section 6031,

 

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 (!1)

 

(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).

 

-SOURCE-

(Added Pub. L. 95-600, title II, Sec. 211(a), Nov. 6, 1978, 92

Stat. 2817; amended Pub. L. 110-142, Sec. 8(a), (b), Dec. 20, 2007,

121 Stat. 1806; Pub. L. 110-458, title I, Sec. 127(a), Dec. 23,

2008, 122 Stat. 5116; Pub. L. 111-92, Sec. 16(a), Nov. 6, 2009, 123

Stat. 2996.)

 

-COD-

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, Sec. 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96-222, and repealed by Pub.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.

 

 

-MISC1-

AMENDMENTS

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, Sec. 8(a), substituted "12

months" for "5 months" in concluding provisions.

Subsec. (b)(1). Pub. L. 110-142, Sec. 8(b), substituted "$85" for

"$50".

 

EFFECTIVE DATE OF 2009 AMENDMENT

Pub. L. 111-92, Sec. 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, Sec. 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, Sec. 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

Section 211(c) of Pub. L. 95-600 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, Sec. 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."

 

-FOOTNOTE-

 

(!1) So in original. Probably should be followed by a period.

 

 

-End-