26 USC 6693 - Failure to provide reports on certain tax-favored accounts or annuities; penalties relating to designated nondeductible contributions

U.S Code last checked for updates: Jan 18, 2025

§ 6693.

Failure to provide reports on certain tax-favored accounts or annuities; penalties relating to designated nondeductible contributions

(a)

Reports

(1)

In general

(2)

Provisions

The provisions referred to in this paragraph are—

(A)

subsections (i) and (l) of section 408 (relating to individual retirement plans),

(B)

section 220(h) (relating to Archer MSAs),

(C)

section 223(h) (relating to health savings accounts),

(D)

section 529(d) (relating to qualified tuition programs),

(E)

section 529A(d) (relating to qualified ABLE programs), and

(F)

section 530(h) (relating to Coverdell education savings accounts).

This subsection shall not apply to any report which is an information return described in section 6724(d)(1)(C)(i) or a payee statement described in section 6724(d)(2)(X).

(b)

Penalties relating to nondeductible contributions

(1)

Overstatement of designated nondeductible contributions

Any individual who—

(A)

is required to furnish information under section 408(o)(4) as to the amount of designated nondeductible contributions made for any taxable year, and

(B)

overstates the amount of such contributions made for such taxable year,

shall pay a penalty of $100 for each such overstatement unless it is shown that such overstatement is due to reasonable cause.

(2)

Failure to file form

(c)

Penalties relating to simple retirement accounts

(1)

Employer penalties

(2)

Trustee and issuer penalties

A trustee or issuer who fails—

(A)

to provide 1 or more statements required by the last sentence of section 408(i) shall pay a penalty of $50 for each day on which such failures continue, or

(B)

to provide 1 or more summary descriptions required by section 408(l)(2)(B) shall pay a penalty of $50 for each day on which such failures continue.

(3)

Reasonable cause exception

(d)

Deficiency procedures not to apply

(Added Pub. L. 93–406, title II, § 2002(f), Sept. 2, 1974, 88 Stat. 967; amended Pub. L. 96–222, title I, § 101(a)(10)(H), Apr. 1, 1980, 94 Stat. 203; Pub. L. 98–369, div. A, title I, § 147(b), July 18, 1984, 98 Stat. 687; Pub. L. 99–514, title XI, § 1102(d)(1), (2)(A), (B), Oct. 22, 1986, 100 Stat. 2416; Pub. L. 100–647, title I, § 1011(b)(4)(A), (B)(i), Nov. 10, 1988, 102 Stat. 3456, 3457; Pub. L. 104–188, title I, §§ 1421(b)(4)(B), 1455(d)(3), Aug. 20, 1996, 110 Stat. 1796, 1818; Pub. L. 104–191, title III, § 301(g), Aug. 21, 1996, 110 Stat. 2052; Pub. L. 105–34, title II, §§ 211(e)(2)(B), (C), 213(c), title XVI, §§ 1601(d)(1)(C)(ii), 1602(a)(4), Aug. 5, 1997, 111 Stat. 812, 816, 1087, 1094; Pub. L. 105–277, div. J, title IV, § 4006(c)(4), Oct. 21, 1998, 112 Stat. 2681–913; Pub. L. 106–554, § 1(a)(7) [title II, § 202(b)(2)(E)], Dec. 21, 2000, 114 Stat. 2763, 2763A–629; Pub. L. 107–16, title IV, § 402(a)(4)(A), June 7, 2001, 115 Stat. 60; Pub. L. 107–22, § 1(b)(2)(C), July 26, 2001, 115 Stat. 197; Pub. L. 108–173, title XII, § 1201(g), Dec. 8, 2003, 117 Stat. 2479; Pub. L. 113–295, div. B, title I, § 102(c), Dec. 19, 2014, 128 Stat. 4062.)

cite as: 26 USC 6693