§ 6693. Failure to provide reports on certain tax-favored accounts or annuities; penalties relating to designated nondeductible contributions
(a) Reports
(1) In general
If a person required to file a report under a provision referred to in paragraph (2) fails to file such report at the time and in the manner required by such provision, such person shall pay a penalty of $50 for each failure unless it is shown that such failure is due to reasonable cause.
(2) Provisions
The provisions referred to in this paragraph are—
(A)subsections (i) and (l) of section
408 (relating to individual retirement plans),
(C)section
223(h) (relating to health savings accounts),
(D)section
529(d) (relating to qualified tuition programs), and
(E)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
Any individual who fails to file a form required to be filed by the Secretary under section
408(o)(4) shall pay a penalty of $50 for each such failure unless it is shown that such failure is due to reasonable cause.
(c) Penalties relating to simple retirement accounts
(1) Employer penalties
An employer who fails to provide 1 or more notices required by section
408(l)(2)(C) shall pay a penalty of $50 for each day on which such failures continue.
(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
No penalty shall be imposed under this subsection with respect to any failure which the taxpayer shows was due to reasonable cause.
(d) Deficiency procedures not to apply
Subchapter B of chapter 63 (relating to deficiency procedures for income, estate, gift, and certain excise taxes) does not apply to the assessment or collection of any penalty imposed by this section.