Reasonable Cause Penalty Abatement for Fuel Reporting

IRC §6725

Taxpayers can avoid a $10,000 penalty for failing to report information regarding vessels or facilities under section 4101 by demonstrating the failure was due to reasonable cause.

Eligibility

Applies to persons required to report on fuel vessels or facilities who miss deadlines or provide incorrect information but have a justifiable excuse.

Frequently Asked Questions

Who is eligible for the Reasonable Cause Penalty Abatement for Fuel Reporting?

Applies to persons required to report on fuel vessels or facilities who miss deadlines or provide incorrect information but have a justifiable excuse.

How does the Reasonable Cause Penalty Abatement for Fuel Reporting work?

Taxpayers can avoid a $10,000 penalty for failing to report information regarding vessels or facilities under section 4101 by demonstrating the failure was due to reasonable cause.

What law authorizes the Reasonable Cause Penalty Abatement for Fuel Reporting?

The Reasonable Cause Penalty Abatement for Fuel Reporting is authorized under IRC §6725 of the Internal Revenue Code (Title 26, United States Code).

Statutory Text — IRC §6725

Source: Internal Revenue Code, Title 26, United States Code

§ 6725. Failure to report information under section 4101(a) In generalIn the case of each failure described in subsection (b) by any person with respect to a vessel or facility, such person shall pay a penalty of $10,000 in addition to the tax (if any). (b) Failures subject to penaltyFor purposes of subsection (a), the failures described in this subsection are—(1) any failure to make a report under section 4101(d) on or before the date prescribed therefor, and (2) any failure to include all of the information required to be shown on such report or the inclusion of incorrect information. (c) Reasonable cause exceptionNo penalty shall be imposed under this section with respect to any failure if it is shown that such failure is due to reasonable cause. (Added Pub. L. 108–357, title VIII, § 863(d)(1), Oct. 22, 2004, 118 Stat. 1620.) Statutory Notes and Related Subsidiaries Effective DateSection applicable to penalties imposed after Dec. 31, 2004, see section 863(e) of Pub. L. 108–357, set out as a note under section 6719 of this title.

Legal Sources

US Code (Official) — 26 USC §6725 → Cornell Law Institute — 26 USC §6725 → Search IRS.gov for IRC §6725 → Treasury Regulations (26 CFR) →

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