Lance Wallach : About

Lance Wallach : About

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    Lance Wallach, Expert Witness
    Form 8886
    US CODE 6707A-PENALTY FOR FAILURE TO INCLUDE REPORTABLE TRANSACTION INFORMATION WITH RETURN LANCE WALLACH TAX AUDIT CONSULTATION

    (a) Imposition of penalty
    Any person who fails to include on any return or statement any information with respect to a reportable transaction which is required under section 6011 to be included with such return or statement shall pay a penalty in the amount determined under subsection (b).
    (b) Amount of penalty
    (1) In general
    Except as otherwise provided in this subsection, the amount of the penalty under subsection (a) with respect to any reportable transaction shall be 75 percent of the decrease in tax shown on the return as a result of such transaction (or which would have resulted from such transaction if such transaction were respected for Federal tax purposes).
    (2) Maximum penalty
    The amount of the penalty under subsection (a) with respect to any reportable transaction shall not exceed—
    (A) in the case of a listed transaction, $200,000 ($100,000 in the case of a natural person), or
    (B) in the case of any other reportable transaction, $50,000 ($10,000 in the case of a natural person).
    (3) Minimum penalty
    The amount of the penalty under subsection (a) with respect to any transaction shall not be less than $10,000 ($5,000 in the case of a natural person).
    (c) Definitions
    For purposes of this section:
    (1) Reportable transaction
    The term “reportable transaction” means any transaction with respect to which information is required to be included with a return or statement because, as determined under regulations prescribed under section 6011, such transaction is of a type which the Secretary determines as having a potential for tax avoidance or evasion.
    (2) Listed transaction
    The term “listed transaction” means a reportable transaction which is the same as, or substantially similar to, a transaction specifically identified by the Secretary as a tax avoidance transaction for purposes of section 6011.
    (d) Authority to rescind penalty
    (1) In general
    The Commissioner of Internal Revenue may rescind all or any portion of any penalty imposed by this section with respect to any violation if—
    (A) the violation is with respect to a reportable transaction other than a listed transaction, and
    (B) rescinding the penalty would promote compliance with the requirements of this title and effective tax administration.
    (2) No judicial appeal
    Notwithstanding any other provision of law, any determination under this subsection may not be reviewed in any judicial proceeding.
    (3) Records
    If a penalty is rescinded under paragraph (1), the Commissioner shall place in the file in the Office of the Commissioner the opinion of the Commissioner with respect to the determination, including—
    (A) a statement of the facts and circ

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