Loopholes > Federal > Reasonable Cause Penalty Abatement for Quid Pro Quo Disclosures
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Reasonable Cause Penalty Abatement for Quid Pro Quo Disclosures

IRC §6714

Exempts an organization from the $10-per-contribution penalty for failing to provide required disclosures for quid pro quo contributions if the failure is due to reasonable cause.

Eligibility

Available to charitable organizations that can demonstrate a legitimate, non-willful reason for failing to meet the disclosure requirements of section 6115.

Frequently Asked Questions

Who is eligible for the Reasonable Cause Penalty Abatement for Quid Pro Quo Disclosures?

Available to charitable organizations that can demonstrate a legitimate, non-willful reason for failing to meet the disclosure requirements of section 6115.

How does the Reasonable Cause Penalty Abatement for Quid Pro Quo Disclosures work?

Exempts an organization from the $10-per-contribution penalty for failing to provide required disclosures for quid pro quo contributions if the failure is due to reasonable cause.

What law authorizes the Reasonable Cause Penalty Abatement for Quid Pro Quo Disclosures?

The Reasonable Cause Penalty Abatement for Quid Pro Quo Disclosures is authorized under IRC §6714 of the Internal Revenue Code (Title 26, United States Code).

Statutory Text — IRC §6714

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

§ 6714. Failure to meet disclosure requirements applicable to quid pro quo contributions(a) Imposition of penaltyIf an organization fails to meet the disclosure requirement of section 6115 with respect to a quid pro quo contribution, such organization shall pay a penalty of $10 for each contribution in respect of which the organization fails to make the required disclosure, except that the total penalty imposed by this subsection with respect to a particular fundraising event or mailing shall not exceed $5,000. (b) 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. 103–66, title XIII, § 13173(b), Aug. 10, 1993, 107 Stat. 456.) Editorial Notes Codification Another section 6714 was renumbered section 6715 of this title. Statutory Notes and Related Subsidiaries Effective DateSection applicable to quid pro quo contributions made on or after Jan. 1, 1994, see section 13173(d) of Pub. L. 103–66, set out as a note under section 6115 of this title.

Legal Sources

US Code (Official) — 26 USC §6714 → Cornell Law Institute — 26 USC §6714 → Search IRS.gov for IRC §6714 → Treasury Regulations (26 CFR) →
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