[Code of Federal Regulations]
[Title 26, Volume 18]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR301.6678-1]

[Page 421]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 301_PROCEDURE AND ADMINISTRATION--Table of Contents
 
   Additions to the Tax, Additional Amounts, and Assessable Penalties
 
Sec. 301.6678-1  Failure to furnish statements to payees.

    (a) In general. In the case of each failure to furnish a statement 
required--
    (1) Under section 6042(c) and Sec. 1.6042-4 to a person with 
respect to whom a return has been made under section 6042(a)(1), 
relating to information returns with respect to payment of dividends 
aggregating $10 or more in a calendar year,
    (2) Under section 6044(e) and Sec. 1.6044-5 to a person with 
respect to whom a return has been made under section 6044(a)(1), 
relating to information returns with respect to certain payments by 
cooperatives aggregating $10 or more in a calendar year,
    (3) Under section 6049(c) and Sec. 1.6049-3 to a person with 
respect to whom a return has been made under section 6049(a)(1), 
relating to information returns with respect to payments of interest 
aggregating $10 or more in a calendar year,
    (4) Under section 6039(b) and Sec. 1.6039-2 to a person with 
respect to whom a return has been made under section 6039(a), relating 
to information returns with respect to certain stock option transactions 
occurring in a calendar year, or
    (5) Under section 6052(b) and Sec. 1.6052-2 to a person with 
respect to whom a return has been made under section 6052(a), relating 
to information returns with respect to payment of wages in the form of 
group-term life insurance provided for an employee on his life, within 
the time prescribed for furnishing such statement (determined with 
regard to any extension of time for furnishing), there shall be paid by 
the person failing to so furnish the statement $10 for each such 
statement not so furnished. However, the total amount imposed on the 
delinquent person for all such failures during a calendar year shall not 
exceed $25,000.
    (b) Manner of payment. The penalty imposed under section 6678 and 
this section on any person shall be paid in the same manner as tax upon 
the issuance of a notice and demand therefor.
    (c) Showing of reasonable cause. The penalty imposed by section 6678 
shall not apply with respect to a failure to furnish a statement within 
the time prescribed if it is established to the satisfaction of the 
district director or the director of the regional service center that 
such failure was due to reasonable cause and not to willful neglect. An 
affirmative showing of reasonable cause must be made in the form of a 
written statement, containing a declaration that it is made under the 
penalties of perjury, setting forth all the facts alleged as a 
reasonable cause.