Failing to file costs $500 a day, more for intentional disregard
What the document says“such person shall pay a penalty of $500 for each day during which such failure continues.”
The section adds a new section 6726 to part II of subchapter B of chapter 68 of the Internal Revenue Code of 1986 imposing a penalty of $500 a day where a person required to file under section 6039K fails to file a complete and correct return on time and in the manner prescribed. The maximum for any one return is $10,000, or $50,000 where the fund's gross assets on the last day of the taxable year exceed $10,000,000. Where the failure is due to intentional disregard the daily figure becomes $2,500 and the caps become $50,000 and $250,000. The figures rise with prices for returns due in a calendar year after 2025.
What the document actually says“such person shall pay a penalty of $500 for each day during which such failure continues.”
The fine is $500 for each day the failure goes on.
One return may not draw more than $10,000. For a large fund the cap is $50,000. A failure on purpose costs five times as much.
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