CHAPTER 68-ADDITIONS TO THE TAX, ADDITIONAL AMOUNTS, AND ASSESSABLE PENALTIES (68A Stat. 821, ff.): NOTE: The table of subchapters for Chapter 68 reads as follows (68A Stat. 821): "SUBCHAPTER A. Additions to the tax and additional amounts. "SUBCHAPTER B. Assessable penalties." This table has not been amended. CH. 68, SUBCHAPTER A-ADDITIONS TO THE TAX AND ADDITIONAL AMOUNTS (68A Stat. 821-827): NOTE: The table of sections for Subchapter A of Chapter 68 reads as follows (68A Stat. 821): "Sec. 6651. Failure to file tax return. "Sec. 6652. Failure to file certain information returns. "Sec. 6653. Failure to pay tax. "Sec. 6654. Failure by individual to pay estimated income tax. "Sec. 6655. Failure by corporation to pay estimated income tax. "Sec. 6657. Bad checks. "Sec. 6658. Addition to tax in case of jeopardy. "Sec. 6659. Applicable rules." This table has not been amended. SEC. 6651. FAILURE TO FILE TAX RETURN (68A Stat. 821): 827 Aug. 30, 1957, H.R. 8892, P.L. 85-239, § 1(c)(3), 71 Stat. 521: "(c) If a certificate [waiver certificate by ministers, etc.] filed pursuant to section 1402(e) (3) (A) or (B) of the Internal Revenue Code of 1954 [as added by P.L. 85-239, §1(b), p. 525 above] after the due date of the return (including any extension thereof) for any taxable year is effective for such taxable year or for any preceding taxable year, then "(3) for purposes of section 6651 of such Code (relating to addition to tax for failure to file tax return), the amount of tax required to be shown on the return shall not include such increase in tax" [resulting from the filing of the certificate]. May 14, 1960, H.R. 9660, P.L. 86-470, § 2, 74 Stat. 132: "SEC. 2. . . . Any addition to tax under section 6651, 6654, or 6655 of the Internal Revenue Code of 1954, assessed and collected on or before the date of the enactment of this Act [May 14, 1960], shall not be considered an overpayment solely on the ground that such assessment was invalid, if such assessment would not have been invalid had the amendment made by the first section of this Act [revision of Code section 6659(b), p. 1128 below] applied with respect to such assessment." 827 Section 6651, which has not been amended, reads as follows: "SEC. 6651. FAILURE TO FILE TAX RETURN. "(a) ADDITION TO THE TAX.-In case of failure to file any return required under authority of subchapter A of chapter 61 (other than part III thereof), of subchapter A of chapter 51 (relating to distilled spirits, wines, and beer), or of subchapter A of chapter 52 (relating to tobacco, cigars, cigarettes, and cigarette papers and tubes), or of subchapter A of chapter 53 (relating to machine guns and certain other firearms), on the date prescribed therefor (determined with regard to any extension of time for filing), unless it is shown that such failure is due to reasonable cause and not due to willful neglect, there shall be added to the amount required to be shown as tax on such return 5 percent of the amount of such tax if the failure is for not more than 1 month, with an additional 5 percent for each additional month or fraction thereof during which such failure continues, not exceeding 25 percent in the aggregate. “(b) PENALTY IMPOSED ON NET AMOUNT DUE.-For purposes of subsection (a), the amount of tax required to be shown on the return shall be reduced by the amount of any part of the tax which is paid on or before the date prescribed for payment of the tax and by the amount of any credit against the tax which may be claimed upon the return. "(c) EXCEPTION FOR DECLARATIONS OF ESTIMATED TAX.-This section shall not apply to any failure to file a declaration of estimated tax required by section 6015 or section 6016.' 60-448-67— -72 SEC. 6651-Continued ANCILLARY PROVISIONS-Continued July 30, 1965, H.R. 6675, P.L. 89-97, § 331(b) (3), 79 Stat. 402: "(b) In the case of a certificate or supplemental certificate filed pursuant to section 1402(e) (5) of the Internal Revenue Code of 1954, as amended by subsection (a) [see p. 530 above] "(3) for purposes of section 6651 of such Code (relating to addition to tax for failure to file tax return), the amount of tax required to be shown on the return shall not include tax under section 1401 of such Code which is due for any taxable year ending before January 1, 1966, solely by reason of the filing of a certificate which is effective under section 1402 (e) (5).” SEC. 6652. FAILURE TO FILE CERTAIN INFORMATION RETURNS (68A Stat. 821-822): (a) (in full) In full.... Sept. 2, 1958, H.R. 8381, P.L. 85-866, § 85, 72 Stat. 1664: "(a) ADDITIONAL AMOUNT.-In case of each failure to file a statement of a payment to another person, required under authority of section 6041 (relating to information at source), section 6042(1) (relating to payments of corporate dividends), section 6044 (relating to patronage dividends), or section 6051(d) (relating to information returns with respect to income tax withheld), on the date prescribed therefor (determined with regard to any extension of time for filing), unless it is shown that such failure is due to reasonable cause and not to willful neglect, there shall be paid (upon notice and demand by the Secretary or his delegate and in the same manner as tax), by the person failing to so file the statement, $1 for each such statement not so filed, but the total amount imposed on the delinquent person for all such failures during any calendar year shall not exceed $1,000." Effective Date: August 17, 1954. (Id., § 1(c)(2), 72 Stat. 1606. See n. 703, p. 972 above.) Oct. 16, 1962, H.R. 10650, P.L. 87-834, § 19(d), 76 Stat. 1057: Amended Sec. 6652 (as amended by P.L. 85-866, § 85) to read as follows: "SEC. 6652. FAILURE TO FILE CERTAIN INFORMATION RETURN "(a) RETURNS RELATING TO PAYMENTS OF DIVIDENDS, INTEREST, AND PATRONAGE DIVIDENDS.-In the case of each failure to file a statement of the aggregate amount of payments to another person required by section 6042 (a) (1) (relating to payments of dividends aggregating $10 or more), section 6044 (a) (1) (relating to payments of patronage dividends aggregating $10 or more), or section 6049 (a)(1) (relating to payments of interest aggregating $10 or more), on the date prescribed therefor (determined with regard to any 829 Section 6652 originally read as follows (68A Stat. 821-822): "SEC. 6652. FAILURE TO FILE CERTAIN INFORMATION RETURNS. "(a) ADDITIONAL AMOUNT.-In case of each failure to file a statement of a payment to another person, required under authority of section 6041 (relating to information at source), section 6042 (relating to payments of corporate dividends), section 6044 (relating to patronage dividends), section 6045 (relating to returns of brokers), or section 6051 (d) (relating to information returns with respect to income tax withheld), unless it is shown that such failure is due to reasonable cause and not to willful neglect, there shall be paid by the person failing to file the statement, upon notice and demand by the Secretary or his delegate and in the same manner as tax, $1 for each such statement not filed, but the total amount imposed on the delinquent person for all such failures during any calendar year shall not exceed $1,000. "(b) ALCOHOL AND TOBACCO TAXES. "For penalties for failure to file certain information returns with respect to alcohol and tobacco taxes, see, generally, subtitle E." SEC. 6652 (revised 1962)-Continued (a). in full) extension of time for filing), unless it is shown that such failure is due to reasonable cause and not to willful neglect, there shall be paid (upon notice and demand by the Secretary or his delegate and in the same manner as tax), by the person failing to so file the statement, $10 for each such statement not so filed, but the total amount imposed on the delinquent person for all such failures during any calendar year shall not exceed $25,000. "(b) OTHER RETURNS.-In the case of each failure to file a statement of a payment to another person required under authority of section 6041 (relating to certain information at source), section 6042 (a)(2) (relating to payments of dividends aggregating less than $10), section 6044 (a) (2) (relating to payments of patronage dividends aggregating less than $10), section 6049 (a)(2) (relating to payments of interest aggregating less than $10), section 6049 (a)(3) (relating to other payments of interest by corporations), or section 6051(d) (relating to information returns with respect to income tax withheld), on the date prescribed therefor (determined with regard to any extension of time for filing), unless it is shown that such failure is due to reasonable cause and not to willful neglect, there shall be paid (upon notice and demand by the Secretary or his delegate and in the same manner as tax) by the person failing to so file the statement, $1 for each such statement not so filed, but the total amount imposed on the delinquent person for all such failures during the calendar year shall not exceed $1,000. "(c) ALCOHOL AND TOBACCO TAXES. "For penalties for failure to file certain information returns with respect to alcohol and tobacco taxes, see, generally, subtitle E." Applicability: Payments of dividends and interest made on or after January 1, 1963. (Id., § 19(h)(1), 76 Stat. 1057.) Feb. 26, 1964, H.R. 8363, P.L. 88-272, § 221(b) (2), 78 Stat. 74: Amended Sec. 6652(a) (as revised by P.L. 87-834, § 19(d)) to read as follows: "(a) RETURNS RELATING TO PAYMENTS OF DIVIDENDS, ETC., and CERTAIN TRANSFERS OF STOCK.-In the case of each failure "(1) to file a statement of the aggregate amount of payments to another person required by section 6042 (a) (1) (relating to payments of dividends aggregating $10 or more), section 6044 (a)(1) (relating to payments of patronage dividends aggregating $10 or more), or section 6049 (a) (1) (relating to payments of interest aggregating $10 or more), "(2) to make a return required by section 6039 (a) (relating to reporting information in connection with certain options) with respect to a transfer of stock or a transfer of legal title to stock, or "(3) to make a return required by section 6052 (a) (relating to reporting payment of wages in the form of group-term life insurance) with respect to group-term life insurance on the life of an employee, on the date prescribed therefor (determined with regard to any extension of time for filing), unless it is shown that such failure is due to reasonable cause and not to willful neglect, there shall be paid (upon notice and demand by the Secretary or his delegate and in the same manner as tax), by the person failing to file a statement referred to in paragraph (1) or failing to make a return referred to in paragraph SEC. 6652 (revised 1962)-Continued (a) (revised 1964)-Continued (b) (in part) (c).. added) Do.... (in part) (2) or (3), $10 for each such failure, but the total amount imposed on the delinquent person for all such failures during any calendar year shall not exceed $25,000." Applicability: In general, taxable years ending after December 31, 1963, but paragraph (2) "shall apply to stock transferred pursuant to options exercised on or after January 1, 1964." (Id., § 221 (e) (1) and (2), 78 Stat. 75. See n. 117, pp. 226-227 above.) Section 204 (d) of P.L. 88-272 contained the following provision: "Paragraph (3) of section 6652 (a) of the Internal Revenue Code of 1964 (as amended by section 221 (b) (2) of this Act), shall apply with respect to group-term life insurance provided after December 31, 1963, in taxable years ending after such date." See n. 23 relating to the applicability of the amendment adding the new Code section 79, pp. 64-65 above. July 30, 1965, H.R. 6675, P.L. 89-97, § 313(e) (2) (B), 79 Stat. 385: Amended Sec. 6652(b) (as revised by P.L. 87-834, § 19(d)) by inserting after "income tax withheld)," the following: "and in the case of each failure to furnish a statement required by section 6053(b) (relating to statements furnished by employers with respect to tips),". Applicability: Only with respect to tips received by employees after 1965. July 30, 1965, H.R. 6675, P.L. 89-97, § 313(e) (3), 79 Stat. 385: "(c) FAILURE TO REPORT TIPS.-In the case of failure by an employee to report to his employer on the date and in the manner prescribed therefor any amount of tips required to be so reported by section 6053(a) which are wages (as defined in section 3121(a)), unless it is shown that such failure is due to reasonable cause and not due to willful neglect, there shall be paid by the employee, in addition to the tax imposed by section 3101 with respect to the amount of tips which he so failed to report, an amount equal to 50 percent of such tax." Applicability: Only with respect to tips received by employees after 1965. Sept. 29, 1965, H.R. 10874, P.L. 89-212, § 2(e), 79 Stat. 859: "or which are compensation (as defined in section 3231(e))”, and (2) by inserting after "section 3101" the following: "or section 3201 (as the case may be)". SEC. 6653. FAILURE TO PAY TAX (68A Stat. 822-823): (c)(1)______ Sept. 2, 1958, H.R. 8381, P.L. 85-866, § 86, 72 Stat. 1665: (in part) Amended subsection (c) (1) 829 of Sec. 6653 by inserting "on or" after "such return was filed". Effective Date: August 17, 1954. (Id., § 1(c)(2), 72 Stat. 1606. Applicability: See n. 703, p. 972 above. SEC. 6654. FAILURE BY INDIVIDUAL TO PAY ESTIMATED IN (b) ___. (in part) COME TAX (68A Stat. 823–825): Sept. 25, 1962, H.R. 6413, P.L. 87-682, 1(a) (4), 76 Stat. 575: "or fishing" after "from farming". Applicability: Only with respect to taxable years beginning after December 31, 1962. (Id., § 2, 76 Stat. 575.) (d)(1)(C)___ Sept. 25, 1962, H.R. 6413, P.L. 87-682, § 1(a)(4), 76 Stat. 575: 829 Subsection (c) (1) of Section 6653 originally read as follows (68A Stat. 822): "(c) DEFINITION OF UNDERPAYMENT.-For purposes of this section, the term 'underpayment' means "(1) INCOME, ESTATE, AND GIFT TAXES.-In the case of a tax to which section 6211 (relating to income, estate, and gift taxes) is applicable, a deficiency as defined in that section (except that, for this purpose, the tax shown on a return referred to in section 6211(a)(1)(A) shall be taken into account only if such return was filed before the last day prescribed for the filing of such return, determined with regard to any extension of time for such filing), and”. 830 Subsection (b) of section 6654 originally read as follows (68A Stat. 823): "(b) AMOUNT OF UNDERPAYMENT. For purposes of subsection (a), the amount of the underpayment shall be the excess of "(1) The amount of the installment which would be required to be paid if the estimated tax were equal to 70 percent (66% percent in the case of individuals referred to in section 6073(b), relating to income from farming) of the tax shown on the return for the taxable year or, if no return was filed, 70 percent (6633 percent in the case of individuals referred to in section 6073(b), relating to income from farming) of the tax for such year, over "(2) The amount, if any, of the installment paid on or before the last date prescribed for such payment." 831 Subsection (d)(1)(C) of section 6654 originally read as follows (68A Stat. 824): "(C) An amount equal to 70 percent (66% percent in the case of individuals referred to in section 6073(b), relating to income from farming) of the tax for the taxable year computed by placing on an annualized basis the taxable income for the months in the taxable year ending before the month in which the installment is required to be paid. For purposes of this subparagraph, the taxable income shall be placed on an annualized basis by "(i) multiplying by 12 (or, in the case of a taxable year of less than 12 months, the number of months in the taxable year) the taxable income (computed without deduction of personal exemptions) for the months in the taxable year ending before the month in which the installment is required to be paid, "(ii) dividing the resulting amount by the number of months in the taxable year ending before the month in which such installment date falls, and "(iii) deducting from such amount the deductions for personal exemptions allowable for the taxable year (such personal exemptions being determined as of the last date prescribed for payment of the installment); or". |