600* IRC 6721 Failure to File Correct Information Returns

This reference number should only be used for returns and statements due after December 31, 1989.



IRC 6721 provides different penalty rates per failure as well as maximum annual penalties per taxpayer depending on the due date of the return(s). In addition, IRC 6721 provides reduced penalty rates and maximum penalties for small businesses with gross receipts of $5 million or less as well as reduced rates and maximum penalties based on the following: Failures corrected within 30 days after the due date of the information return, and

Failures corrected after the 30th day following the due date of the information but on or before August 1st.

In addition, the penalty rates and maximum penalties are subject to inflationary adjustments for returns required to be filed on or after Jan. 1, 2016. For all rates and maximum penalties as adjusted for inflation, if applicable, refer to Section 10.7 of Document 6209 at http://serp.enterprise.irs.gov/databases/irm.dr/current/6209/section-10-7.html

For other circumstances that may apply, see IRM 20.1.7.8.

603* IRC 6038C Failure of Foreign Corporation Engaged in a U.S. Business to Furnish Information or Maintain Records

See IRM 20.1.9.8. Initial penalty is $10,000 for each taxable year.

If the information is not received within 90 days from notification, a continuation penalty of $10,000 is charged for each 30-day period (or fraction thereof) the failure continues. No maximum penalty amount (assess with PRN 705).

604* IRC 6652(f) Failure of Foreign Person to File Return Regarding Direct Investment in U.S. Real Property Interests

See IRM 20.1.9.12. The penalty applies to returns required under IRC 6039C.

$25 per day. Maximum is the lesser of $25,000, or 5% of the aggregate fair market value of the United States real property investments.

605* IRC 6686 Failure to File Returns or Supply Information by DISC or Former FSC

See IRM 20.1.9.17. $100 for each failure to supply information to shareholders on Schedule K. Maximum $25,000 per calendar year.

$1,000 for each failure to file Form 1120-DISC, Domestic International Sales Corporation Return, Form 1120-IC DISC, Interest Charge Domestic International Sales—Corporation Return or Form 1120-FSC, U.S. Income Tax Return of a Foreign Sales Corporation.

606 IRC 6695A Substantial and Gross Valuation Misstatements Attributable to Incorrect Appraisals Note: Effective Jan. 2010, PRN 581 is used for IRC 6695A penalty assessments.

607* IRC 6721(a) Failure to File Information Returns or Registration Statements by Due Date Caution: Use of PRN 607 is limited to employees of the Bank Secrecy Act (BSA) Program.

See PRN 600 above for an explanation of the applicable penalty rates.

609* IRC 6721(a) Failure to Comply With Certain Information Reporting Requirements-Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business Caution: Use of PRN 609 is limited to employees of the Bank Secrecy Act (BSA) Program. All others use PRN 651

See PRN 651 for an explanation and the applicable penalty rates.

611* IRC 6652(c)(3)(A) Failure to File a Disclosure Required of Tax-Exempt Entity $100** per failure per day.

$50,000** maximum for any 1 disclosure.



**-Subject to annual inflationary adjustments. See additional information at end of exhibit.

612* IRC 6722 Failure to Furnish Correct Payee Statement

For returns required to be filed after December 31, 1989 , a penalty will be imposed for each failure to: Furnish a payee statement on or before the due date to the person to whom the statement must be furnished, Furnish all information required, and Furnish correct information. Note: Only one penalty per statement, regardless of the number of failures per statement.



IRC 6722 provides different penalty rates per failure as well as maximum annual penalties per taxpayer depending on the due date of the return(s). In addition, for statements required to be furnished on or after Jan. 1, 2011, IRC 6722 provides reduced penalty rates and maximum penalties for small businesses with gross receipts of $5 million or less as well as reduced rates and maximum penalties based on the following: Failures corrected within 30 days after the due date of the information return, and

Failures corrected after the 30th day following the due date of the information but on or before August 1st.

In addition, the penalty rates and maximum penalties are subject to inflationary adjustments for returns required to be filed on or after Jan. 1, 2016. For all rates and maximum penalties as adjusted for inflation, if applicable, refer to Section 10.7 of Document 6209 at http://serp.enterprise.irs.gov/databases/irm.dr/current/6209/section-10-7.html.

For failures that are due to intentional disregard : No maximum penalty. No reduction in penalty rate.

613* IRC 6679 Failure to File Returns, Etc., With Respect to Foreign Corporations or Foreign Partnerships

See IRM 20.1.9.15. Form 5471, Schedule O, Organization or Reorganization of Foreign Corporation and Acquisitions and Dispositions of Its Stock

Form 8865, Schedule P, Acquisitions, Dispositions, and Changes of Interests in a Foreign Partnership. The initial penalty is assessed at $10,000 per failure.

If failure continues for more than 90 days after notification, penalty is increased by $10,000 for each 30-day period (or fraction thereof) the failure continues. Maximum additional penalty up to $50,000 (assess with PRN 704).

614* IRC 6714 Failure to Meet Disclosure Requirements Applicable to Quid Pro Quo Contributions as Required by IRC 6115

See IRM 20.1.8.2.6. $10 per contribution.

Maximum penalty is $5,000 for a particular fundraising event or mailing.

616* IRC 6682 False Information With Respect to Withholding

See IRM 20.1.10.8. False information on Form W-4, Employee's Withholding Allowance Certificate , and/or Form W-9, Request for Taxpayer Identification Number and Certification .

$500 for each false statement (Form W-4/Form W-9).

618 IRC 6672 Failure to Collect and Pay Over Tax, or an Attempt to Evade or Defeat Tax

See IRM 20.1.10.5. Trust Fund Recovery Program. The penalty is assessed against responsible corporate officers.

100% of the tax required to be collected, accounted for, and paid over.

619* IRC 6038(b)(2) Failure to File Returns With Respect to Foreign Corporations or Foreign Partnerships-Continuation Penalty for Failure to Provide Information After 90-Day Period

See IRM 20.1.9.3.4. The penalty is assessed at $10,000 per 30-day period (or fraction thereof).

$50,000 maximum continuation penalty.

The initial penalty is assessed with PRN 623

621* IRC 6723 Failure to Comply With Other Information Reporting Requirements

For returns and statements required to be filed after December 31, 1989

See IRM 20.1.7.10. A penalty of $50 per failure:

To comply timely with specified information reporting requirements, or

To include correct information. The maximum penalty is $100,000 per year.

623* IRC 6038 Failure to Furnish Information With Respect to Certain Foreign Corporations

See IRM 20.1.9.3.

Failure to file Form 5471, and/or Form 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships Initial penalty is $10,000 per annual accounting period plus FTC reduction.

If failure continues for more than 90 days after notification, penalty is increased by $10,000 for each 30-day period (or fraction thereof) the failure continues. Maximum additional penalty up to $50,000 (assess with PRN 619). Note: PRN 623 was used temporarily in 2009 for systemically-assessed penalties which are now assessed with PRN 599. See IRM 21.8.2.20.2 for additional information.

624 IRC 6695 Other Assessable Penalties With Respect to the Preparation of Income Tax Returns for Other Persons

See IRM 20.1.6.5. Caution: PRNs 714-718 were intended to be used for IRC 6695(a)-(e) assessments but have not yet been activated. We’ll retain the PRN 714-718 descriptions for more detailed information for each of the IRC 6695(a)-(e) penalties, but PRN 624 will continue to be used for assessments under these sections.

Any failure by the preparer to: Furnish a copy of the return to the taxpayer-IRC 6695(a) Sign the return-IRC 6695(b) Furnish the preparer's identifying number-IRC 6695(c) Retain a copy, return or list, as required by IRC 6107(b)-IRC 6695(d) File a correct information return or other requirement of IRC 6060-IRC 6695(e)



These penalties are assessed at $50** per failure, not to exceed: $25,000** per calendar year for IRC 6695(a), IRC 6695(b), and IRC 6695(c)

$25,000** per return period for IRC 6695(d) and IRC 6695(e)



**-Subject to annual inflationary adjustments. See IRM 20.1.6-1 and additional information at end of exhibit.

625* IRC 6038A Information With Respect to Certain Foreign Owned Corporations

Failure to furnish information or maintain records as required by IRC 6038A(a) and IRC 6038A(b). Form 5472, Information Return of a Foreign Owned Corporation.

See IRM 20.1.9.5. Initial penalty is $10,000 for each taxable year with respect to which the failure occurs.

If the failure continues for more than 90 days after notice of failure mailed, an additional $10,000 is imposed for each 30-day period during which the failure continues after the expiration of the original 90 day period (assess with PRN 701).

626* IRC 6695(f) Negotiation of Check by Tax Return Preparer

See IRM 20.1.6.5.6. Endorses or otherwise negotiates a refund check (with respect to income tax) issued to a taxpayer.

$500** per failure.



**-Subject to annual inflationary adjustments. See IRM 20.1.6-1 and additional information at end of exhibit.

627* IRC 6695(g) Failure by Preparer to Be Diligent in Determining Eligibility for Child Tax Credit (CTC), American Opportunity Tax Credit (AOTC) and Earned Income Credit (EIC)

See IRM 20.1.6.5.7, IRM 20.1.6.5.7.1, and 20.1.6.5.7.2.

A penalty applies for any tax return or claim for refund that fails to satisfy the IRC 6695(g) requirements.

The penalty rate varies depending on the tax year of the return and is subject to annual inflationary adjustments. Refer to IRM 20.1.6-1 for penalty rates.

There is no maximum amount.

628* IRC 6700 Promoting Abusive Tax Shelters

See IRM 20.1.6.13. The penalty is the lesser of $1,000 or 100% of gross income derived (or to be derived) from such activity between 1/1/1990 and 10/22/2004.

For such activities after 10/22/2004, the penalty is the lesser of $1,000 or 100% of gross income derived (or to be derived). In the case of a statement described in IRC 6700(a)(2)(A), the penalty is 50% of gross income derived (or to be derived).

629* IRC 6652(c)(3)(B)(ii) Failure by Entity or Manager to Comply With Written Demand to File a Disclosure Required Under IRC 6033(a)(2)

See IRM 20.1.8.2.1.2. $100** for each day the failure continues after the date specified in the demand.

Maximum penalty is $10,000** with respect to any 1 disclosure.



**-Subject to annual inflationary adjustments. See additional information at end of exhibit.

630* IRC 6720 Donee's Failure to Issue Acknowledgement on Used Vehicle Donation as Required by IRC 170(f)(12)

See IRM 20.1.8.



Multiple calculations. See IRC 6720(1) and IRC 6720(2) for calculations.

631* IRC 6701 Penalties for Aiding and Abetting Understatement of Tax Liability

Aiding and abetting-Preparer

See IRM 20.1.6.14

The penalty is assessed for each document that relates to the tax liability of: Individual-at $1,000, or

Corporate-at $10,000

632* IRC 6705 Failure by a Broker to Provide Notice to Payors

See IRM 20.1.10.11.



$500 for each failure.

633* IRC 6713 Disclosure or Use of Information by Preparers of Returns

See IRM 20.1.6.7. $250 per disclosure or use

Maximum of $10,000 per calendar year

634* IRC 6707 Failure to Furnish Information Regarding Reportable Transactions Required by IRC 6111(a)

See IRM 20.1.6.16.

See IRC 6707A(c) for definitions of reportable and listed transactions. For reportable transactions, the penalty for returns due after 10/22/2004 is $50,000 per failure. For listed transactions, the penalty for returns due after 10/22/2004 is the greater of: $200,000, or

50% of the gross income derived relating to the listed transaction. In the case of an intentional failure or act, 75% of the gross income derived

635 IRC 6651(f) Fraudulent Failure to File Caution: Effective July 2, 2013, PRN 635 is no longer used for IRC 6651(f) assessments. Use PRN 686.

See IRM 20.1.2.2.7.5 for additional information.

636* IRC 6708 Failure to Maintain Lists of Investors/Advisees in Potentially Abusive Tax Shelters Required by IRC 6112(a)

See IRM 20.1.6.18. $10,000 per day, from the 21st day after the list is requested, until a complete list is provided to IRS.

No maximum penalty amount.

637* IRC 6721(a) or IRC 6722(a) Failures for Returns Relating to Higher Education Tuition and Related Expenses as Required by IRC 6050S (Form 1098–E, Student Loan Interest Statement)

See IRM 20.1.7.8 and IRM 20.1.7.9.



IRC 6721 and IRC 6722 provide different penalty rates per failure as well as maximum annual penalties per taxpayer depending on the due date of the return(s) and/or statement(s). In addition, IRC 6721 and IRC 6722 provide reduced penalty rates and maximum penalties for small businesses with gross receipts of $5 million or less as well as reduced rates and maximum penalties based on the following: Failures corrected within 30 days after the due date of the information return, and

Failures corrected after the 30th day following the due date of the information but on or before August 1st. Exception: For IRC 6722, the reduced rates only apply to statements required to be furnished on or after Jan. 1, 2011.

In addition, the penalty rates and maximum penalties are subject to inflationary adjustments for returns required to be filed on or after Jan. 1, 2016. For all rates and maximum penalties as adjusted for inflation, if applicable, refer to Section 10.7 of Document 6209 at http://serp.enterprise.irs.gov/databases/irm.dr/current/6209/section-10-7.html.

638* IRC 6721 Failures Related to Form 8027, Employer’s Annual Information Return of Tip Income and Allocated Tips, as Required by IRC 6053

See IRM 20.1.7.8.



IRC 6721 provides different penalty rates per failure as well as maximum annual penalties per taxpayer depending on the due date of the return(s). In addition, IRC 6721 provides reduced penalty rates and maximum penalties for small businesses with gross receipts of $5 million or less as well as reduced rates and maximum penalties based on the following: Failures corrected within 30 days after the due date of the information return, and

Failures corrected after the 30th day following the due date of the information but on or before August 1st.

In addition, the penalty rates and maximum penalties are subject to inflationary adjustments for returns required to be filed on or after Jan. 1, 2016. For all rates and maximum penalties as adjusted for inflation, if applicable, refer to Section 10.7 of Document 6209 at http://serp.enterprise.irs.gov/databases/irm.dr/current/6209/section-10-7.html. Exception: In the case of intentional disregard, there are no reduced penalty rates or maximum penalty.

639* IRC 6704(b) Failure to Keep Records Necessary to Meet Reporting Requirements Under IRC 6047(d)

See IRM 20.1.8.4. $50 per calendar year, multiplied by the number of failures.

Maximum penalty for any person for any calendar year is $50,000.

642 IRC 6722(e) Failure to Furnish Payee Statements-Intentional Disregard

See IRM 20.1.7.9.1.

The penalty is the greater of: The applicable rate reflected in Section 10.7 of Document 6209 depending on the statement due date, or

10% of the amount of income required to be reported on payee statements for dividends, patronage dividends, interest, fishing boat operators, royalties, and wage and tax statements, or

5% of the amount required to be reported on the payee statements for brokers, exchange of partnership interest, or disposition of donated property payments

There is no maximum penalty amount.

643* IRC 6673(a) Sanctions and Costs Awarded by Courts

See IRM 20.1.10.6.1. Tax Court determined that the proceedings before it have been instituted by the taxpayer primarily for delay, etc.

Court awarded sanctions, penalties, or costs not to exceed $25,000

644* IRC 6673(b) Sanctions and Costs Awarded by Courts (IRC 7433)

See IRM 20.1.10.6.2. A Court (other than the Tax Court) determination that the taxpayer filed frivolous suit against the United States.

Court awarded sanctions, penalties, or costs not to exceed $10,000

645* IRC 6694(a) Understatement of Taxpayer’s Liability by Tax Return Preparer

See IRM 20.1.6.4.

The penalty is assessed against a tax return preparer. The penalty is based on an understatement of liability due to an unreasonable position that the tax return preparer knew (or should have known) was unreasonable. No maximum penalty amount. For income tax returns or claims prepared on or prior to May 25, 2007, the penalty is $250 per return or claim. For tax returns or claims prepared after May 25, 2007, the penalty is the greater of: $1,000, or

50% of the income derived, or to be derived, per return or claim

647* IRC 6710 Failure to Disclose That Contributions Are Nondeductible as Required by IRC 6113

See IRM 20.1.8.2.4. $1,000 for each day the failure occurs. Maximum penalty is $10,000 per calendar year.

If the failure is due to intentional disregard, the penalty for each day the failure occurs is the greater of $1,000 or 50% of the aggregate cost of the solicitations. The $10,000 limitation does not apply if the failure is due to intentional disregard.

648* IRC 6707A Failure to Include Reportable Transaction Information With Return (Form 8886, Reportable Transaction Disclosure Statement)

See IRM 20.1.6.17.

For each failure to include information with respect to a reportable transaction, the penalty is 75 percent of the decrease in tax shown on the return as a result of the reportable transaction with the following maximum and minimum penalty amounts: For listed transactions (see IRC 6707A(c)(2)), the maximum penalty is: $100,000 in the case of a natural person, or

$200,000 for all other taxpayers. For any other reportable transaction (see IRC 6707A(c)(1)), the maximum penalty is: $10,000 in the case of a natural person, or

$50,000 for all other taxpayers The minimum penalty for both listed and any other reportable transaction is: $5,000 in the case of a natural person, or

$10,000 for all other taxpayers

649* IRC 6652(l) Failure by Corporation to File Returns Required by IRC 6043(c) (Form 8806, Information Return for Acquisition of Control or Substantial Change in Capital Structure)

See IRM 20.1.10.3.5. $500 per day per failure

Maximum $100,000

650* IRC 6694(b) Willful or Reckless Understatement of Taxpayer’s Liability by Tax Return Preparer

See IRM 20.1.6.4.

The penalty is assessed if any part of the understatement is due to willful or reckless conduct or intentional disregard of the rules or regulations in preparing the return or claim for refund. The penalty is reduced by any amount of penalty paid under IRC 6694(a).

No maximum penalty amount. For income tax returns or claims prepared on or before May 25, 2007, the penalty is $1,000 per return or claim. For tax returns or claims prepared after May 25, 2007, the penalty is the greater of: $5,000, or

75% of the income derived, or to be derived, per return or claim (50% for tax years ending on or before Dec. 18, 2015)

651* IRC 6721(a) Failure to Comply With Certain Information Reporting Requirements-Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business.

See IRM 20.1.7.8.

The penalty is assessed for each Form 8300 not timely and/or correctly filed as required by IRC 6050I.



IRC 6721 provides different penalty rates per failure as well as maximum annual penalties per taxpayer depending on the due date of the return(s). In addition, IRC 6721 provides reduced penalty rates and maximum penalties for small businesses with gross receipts of $5 million or less as well as reduced rates and maximum penalties based on the following: Failures corrected within 30 days after the due date of the information return, and

Failures corrected after the 30th day following the due date of the information but on or before August 1st.

In addition, the penalty rates and maximum penalties are subject to inflationary adjustments for returns required to be filed on or after Jan. 1, 2016. For all rates and maximum penalties as adjusted for inflation, if applicable, refer to Section 10.7 of Document 6209 at http://serp.enterprise.irs.gov/databases/irm.dr/current/6209/section-10-7.html

652* IRC 6721(e)(2)(C) Intentional Disregard of the Failure to Comply With Certain Information Reporting Requirements-Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business

See IRM 20.1.7.8.2(8). Note: This reference number is used to assess the intentional disregard penalty when Form 8300 is not timely and/or correctly filed.

The penalty is assessed at the greater of: $25,000**, or

The amount of cash received in such transaction, to the extent the cash does not exceed $100,000**.

The maximum yearly limitations under IRC 6721 shall not apply.



**-Subject to annual inflationary adjustments. See additional information at end of exhibit.

653* IRC 6722(a) Failure to Furnish Correct Statements Required by IRC 6050I(e)-Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business

See IRM 20.1.7.9.



IRC 6722 provides different penalty rates per failure as well as maximum annual penalties per taxpayer depending on the due date of the return(s) or statement(s). In addition, IRC 6722 provides reduced penalty rates and maximum penalties for small businesses with gross receipts of $5 million or less as well as reduced rates and maximum penalties based on the following: Failures corrected within 30 days after the due date of the information return, and

Failures corrected after the 30th day following the due date of the information but on or before August 1st. Exception: The reduced penalty rates don’t apply to returns or statements due on or before Jan. 1, 2011.

In addition, the penalty rates and maximum penalties are subject to inflationary adjustments for returns required to be filed on or after Jan. 1, 2016. For all rates and maximum penalties as adjusted for inflation, if applicable, refer to Section 10.7 of Document 6209 at http://serp.enterprise.irs.gov/databases/irm.dr/current/6209/section-10-7.html.

654* IRC 6722(e) Intentional Disregard of the Requirement to Furnish a Correct Payee Statement Required by IRC 6050I(e)-Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business

See IRM 20.1.7.9.1. The intentional disregard penalty is the greater of: The applicable rate reflected in Section 10.7 of Document 6209 depending on the statement due date, or

10 percent of the amount required to be reported correctly on the statement The maximum yearly limitation does not apply.

655* IRC 6717(a) Penalty for Refusal to Permit Entry or Examination Allowed by IRC 4083(d)(1)

See IRM 20.1.11.8.2. A penalty of $1,000 for each refusal to admit entry or to permit examination.

A penalty of $1,000 for each refusal to admit entry or to permit examination if the refusal is related to any place where taxable fuel is stored or produced.

656* IRC 6715 Dyed Fuel Sold for Use or Used in Taxable Use, Etc.

See IRM 20.1.11.6.

Generally, the penalty is assessed on any dyed fuel (nontaxable use) that is sold, used, or held for sale or use, for a taxable use. 1st offense, the penalty is the greater of: $1,000, or

$10 for each gallon of dyed fuel involved Subsequent violations, the penalty is the greater of: $1,000 multiplied by the sum of one plus the number of prior violations assessed per IRC 6715 on that person (or any related person or predecessor of that person or related person), or

$10 for each gallon of dyed fuel involved

657* IRC 6718 Failure to Display Tax Registration on Vessels

See IRM 20.1.11.8.4.

The penalty is assessed on any vessel required to display proof of registration as required by IRC 4101(a)(3) and fails to do so. The penalty is: $500 per vessel for the initial one month failure to display.

For multiple monthly violations: $500, plus the amount derived by multiplying $500 times the number of monthly penalties previously imposed.

658* IRC 6652(c)(2)(A) Failure to File Information Return Required by IRC 6034 (relating to returns by certain trusts) or IRC 6043(b) (relating to terminations, etc., of exempt organizations)

See IRM 20.1.8.2.1.1. $10** per day per return

Maximum penalty is $5,000** per return



**-Subject to annual inflationary adjustments. See additional information at end of exhibit.

659* IRC 6677 Failure to File Information With Respect to Certain Foreign Trusts as Required by IRC 6048-Form 3520, Annual Return to Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts

See IRM 20.1.9.13. Initial penalty is 35% of gross reportable amount. Note: For notices and returns due after 12/31/2009, the initial penalty is the greater of 35% of the gross reportable amount, or $10,000. If failure continues for more than 90 days after notice, $10,000 for each 30-day period (or fraction thereof) the failure continues after the expiration of the 90-day period (assess with PRN 702. Total penalty cannot exceed gross reportable amount.

660* IRC 6677(b) Form 3520-AAnnual Return of Foreign Trust With a U.S. Owner-IRC 6048(b)

See IRM 20.1.9.14. Initial penalty is 5% of gross reportable amount. Note: For notices and returns due after 12/31/2009, the initial penalty is the greater of 5% of the gross reportable amount, or $10,000. If failure continues for more than 90 days after notice, $10,000 for each 30-day period (or fraction thereof) the failure continues after the expiration of the 90-day period (assess with PRN 703). Total penalty cannot exceed gross reportable amount.

661* IRC 6675 Excessive Claims With Respect to the Use of Certain Fuels-Per IRC 6416(a)(4), IRC 6420, IRC 6421, or IRC 6427

See IRM 20.1.11.5.

The penalty is the greater of: Two times the excessive amount, or

$10

662*

(BMF) IRC 527(j)(1) Failure to Make Required Disclosure of Expenditures and Contributions (Form 8872, Political Organization Report of Contributions and Expenditures)

See IRM 20.1.8.2.7. 35% of amount relating to failure.

Also see IRC 6652(c).

663*

(BMF) IRC 6652(c)(1)(A) Failures Related to Annual Returns Required by IRC 6033(a)(1) (Exempt Organizations) and IRC 6012(a)(6) (Political Organizations) For organizations with gross receipts of $1,000,000** or less, the penalty is: $20** per day during which such failure continues

Maximum penalty is the lesser of $10,000** or 5% of the gross receipts For organizations with gross receipts of more than $1,000,000**, the penalty is: $100** per day during which such failure continues

Maximum penalty is $50,000**

**-Subject to annual inflationary adjustments. See additional information at end of exhibit.

664* IRC 6712 Failure to Disclose Treaty-Based Return Position as Required by IRC 6114

See IRM 20.1.9.20. $10,000 per failure for C corporations

$1,000 per failure for all other taxpayers

665* IRC 6715A Tampering With, or Failing to Maintain Security Requirements, for Mechanical Dye Injection Systems

See IRM 20.1.11.7. For IRC 6715A(a)(1) (Tampering), the penalty is the greater of: $25,000, or

$10 for each gallon of fuel involved For IRC 6715A(a)(2) (Failure to Maintain Security Requirements), the penalty is: $1,000 per failure, and

$1,000 per day for failing to correct the violation for each day after which such violation was discovered or such person should have reasonably known of such violation

666* IRC 6702(a) Frivolous Return Caution: Only PRN 666 assesses IRC 6702(a) after 1/24/2005

See IRM 20.1.10.10.1.

The penalty is assessed per frivolous document. On a Married Filing Joint frivolous return, the penalty is assessed on each spouse. The penalty is: $500 per document for filings and submissions prior to Mar. 17, 2007.

$5,000 per document for filings and submissions after Mar. 16, 2007.

667* IRC 6725 Failure to Report Information Under IRC 4101 (failure to report a vessel/facility)

See IRM 20.1.11.8.7.



$10,000 per failure.

668* IRC 6039F(c) Failure to File Form 3520, Annual Return to Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts, to Report Receipt of Foreign Gifts

See IRM 20.1.9.10. 5% of the amount of the foreign gift for each month the failure continues

Maximum penalty cannot exceed 25% of the amount of the gift

669*

(IMF) IRC 6688 Failure to File Form 8898, Statement for Individuals Who Begin or End Bona Fide Residence in a U.S. Possession, Regarding Residence in a US Possession as Required by IRC 937(c)

See IRM 20.1.9.18.



$1,000 per failure.

670* IRC 6719 Failure to Register or Reregister as Required by IRC 4101

See IRM 20.1.11.8.5. $10,000 for each initial failure, and

$1,000 for each day thereafter the failure continues

671*

(IMF) IRC 6039G Failure to File Form 8854, Initial and Annual Expatriation Information Statement, Regarding Expatriate/Residency Report

See IRM 20.1.9.11.



$10,000 per failure.

672* IRC 6721 Failures in Regard to Information Returns Relating to Taxable Mergers and Acquisitions as Required by IRC 6043A

See IRM 20.1.7.8.



IRC 6721 provides different penalty rates per failure as well as maximum annual penalties per taxpayer depending on the due date of the return(s). In addition, IRC 6721 provides reduced penalty rates and maximum penalties for small businesses with gross receipts of $5 million or less as well as reduced rates and maximum penalties based on the following: Failures corrected within 30 days after the due date of the information return, and

Failures corrected after the 30th day following the due date of the information but on or before August 1st.

In addition, the penalty rates and maximum penalties are subject to inflationary adjustments for returns required to be filed on or after Jan. 1, 2016. For all rates and maximum penalties as adjusted for inflation, if applicable, refer to Section 10.7 of Document 6209 at http://serp.enterprise.irs.gov/databases/irm.dr/current/6209/section-10-7.html. Note: In the case of intentional disregard, there is no maximum penalty amount.

673* IRC 6720A Resale of Certain Adulterated Diesel Fuels

See IRM 20.1.11.8.6.



$10,000 for each transfer, sale, or holding out for resale.

674* IRC 6723 Failure by Transferor to Notify Partnership of Exchange as Required by IRC 6050K(c) A penalty of $50 is imposed for each failure to comply timely with specified information reporting requirements.

The maximum penalty for failure to comply with all specified information reporting requirements is $100,000 per year.

676* IRC 6038B Notice of Certain Transfers to Foreign Persons (Failure to File Form 926, Return by a U.S. Transferor of Property to a Foreign Corporation) (Failure to File Form 8865, Schedule O, Transfer of Property to a Foreign Partnership)

See IRM 20.1.9.7. 10% of the fair market value of the property transferred at the time of exchange.

Maximum $100,000.

No maximum if failure is due to intentional disregard.

677 IRC 6677(b) Failure to File Part II of Form 3520

See IRM 20.1.9.13. 5% of the gross reportable amount.

If the failure continues for more than 90 days, a continuation rate of $10,000 applies for each 30-day period the failure continues.

The continuation penalty is assessed with PRN 706.

The total penalty cannot exceed the gross reportable amount.

678* IRC 6706(a) Failure to Show Information on Debt Instrument Required by IRC 1275(c)(1) (reported on Form 8281, Information Return for Publicly Offered Original Issue Discount Instruments)

See IRM 20.1.10.12.1.



$50 for each instrument to which a failure exists.

678* IRC 6706(b) Failure to Furnish Information to Secretary Required by IRC 1275(c)(2) (reported on Form 8281, Information Return for Publicly Offered Original Issue Discount Instruments)

See IRM 20.1.10.12.3. 1% of the aggregate issue price of debt instrument amount.

Maximum $50,000.

679*

(IMF) IRC 6039E Failure by Passport and Immigration Applicants to Provide Information Concerning Residence Status

See IRM 20.1.9.21.



$500 for each failure to provide the required information.

680 IRC 6662 Accuracy-Related Penalties

See IRM 20.1.5.

See PRNs 786-792 for IRC 6662(c)-(h) assessments input after 2014 .



For assessments input after 2014, use PRN 680 if the following are true: The penalty is imposed for substantial understatement of income tax under IRC 6662(d), and

Negligence under IRC 6662(c) is a secondary consideration. Note: See IRM 20.1.5.3.2(8).



For assessments input before 2015, penalties assessed with PRN 680 were computed as follows: For IRC 6662(c) through IRC 6662(g), the penalty is 20% of the underpayment

For IRC 6662(h) (Gross Valuation Misstatements), the penalty is 40% of the underpayment

To reverse assessments input with PRN 680, when applicable, a TC 680 for a negative amount must be input. Do not use PRNs 786-792 to reverse PRN 680 assessments.

681 IRC 6662A Accuracy-Related Penalty on Understatements With Respect to Reportable Transactions

See IRM 20.1.5.15. 20% of reportable transaction understatement.

30% for nondisclosed listed or other avoidance transactions.

683 IRC 6662(j) Undisclosed Foreign Financial Asset Understatement

See IRM 20.1.5.13. 40% if any portion of an underpayment is attributable to any undisclosed foreign financial asset

684 IRC 7519(f)(4) Required Payments for Entities Electing Not to Have Required Taxable Year (IRC 444 Elections)

See IRM 20.1.10.17. The penalty is assessed for failing to make a timely election payment

The penalty is assessed at 10 percent of the underpaid amount and is assessed on MFT 15 with TC 246

686 IRC 6651(f) Fraudulent Failure to File

See IRM 20.1.2.2.7.5 and IRM 25.1.7. 15 percent of unpaid tax for each month the return is late, not to exceed 75 percent (5 months).

For any month where the FTP penalty also applies, the FFTF penalty is reduced by the amount of the FTP penalty for that month.

687 IRC 6676 Penalty for Erroneous Claim for Refund or Credit Caution: PRN 687 is used for Married Filing Joint assessments only. All others use PRN 565

See IRM 20.1.5.16.3 and IRM 20.1.5.16.6 . 20% of the excessive amount of the claim.

Assessed with Form 3870, Request for Adjustment.

688 IRC 6721(a)(2)(A) Failure to File Partnership Return Using Electronic Media

See IRM 20.1.2.4 and IRM 21.7.4.4.2.8.1. Applies to partnerships with over 100 partners.

Penalty is systemically assessed with TC 246 and PRN 688.

The penalty rate and maximum penalty varies depending on the due date of the return. For returns due on or after Jan. 1, 2016, the penalty rate and maximum penalties are subject to annual inflationary adjustments. See IRM 20.1.2.4 for penalty rates and maximum penalties.

690 N/A Insurance Provider Fee (IPF) Late Filing Penalty

See IRM 25.21.2.9(1). Applicable under section 9010(g)(2)(A) of the Patient Protection and Affordable Care Act of 2010 (ACA).

Penalty is $10,000 plus the lesser of: $1,000 for each day the failure continues, or The amount of the fee for which the report was required.



691 N/A Insurance Provider Fee (IPF) Accuracy-Related Penalty

See IRM 25.21.2.9(2). Applicable under section 9010(g)(3)(A) of the Patient Protection and Affordable Care Act of 2010 (ACA).

The penalty is equal to the excess of: The amount of the covered entity’s fee for the fee year that should have been paid in the absence of the understatement, over The amount of the fee determined based on the understatement.



692 IRC 5000A Individual Shared Responsibility Payment

See IRM 20.1.11.2. The penalty applies for failure to maintain minimum essential coverage required under IRC 5000A(a).

The penalty rate varies depending on the taxable year. Refer to IRM 20.1.11.2.1 for the penalty rates.

697 IRC 6672 Trust Fund Recovery Penalty - Payment by Related Responsible Party

See IRM 5.7.7.5.1.