[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: 26CFR301.6679-1]

[Page 421-422]
 
                       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. 301.6679-1  Failure to file returns, etc. with respect to foreign 

corporations or foreign partnerships for taxable years beginning after 
September 3, 1982.

    (a) Civil penalty--(1) In general. In addition to any criminal 
penalty provided by law, each U.S. citizen, resident, or person filing a 
separate or joint information return or on whose behalf a return is 
filed, pursuant to sections 6035,

[[Page 422]]

6046, or 6046A, and the regulations thereunder, who fails to file such a 
return within the time provided, or who files a return which does not 
show the required information, shall pay a penalty of $1,000, unless 
such failure is shown to be due to reasonable cause.
    (2) Joint return. The penalty imposed by section 6679 and this 
section shall apply to each U.S. citizen, resident, or person filing a 
joint return pursuant to the provisions of section 6035, 6046, or 6046A, 
which does not show the required information.
    (3) Showing of reasonable cause. The district director, the director 
of the Internal Revenue service center, and the director of 
International Operations are authorized to make the determination that 
such failure was due to a reasonable cause and that, accordingly, the 
penalty imposed by section 6679 shall not apply. 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. If the 
taxpayer exercises ordinary business care and prudence and is 
nevertheless unable to furnish any item of information required under 
section 6035, 6046, or 6046A and the regulations thereunder, such 
failure shall be considered due to a reasonable cause. In determining 
the extent of a taxpayer's ability to obtain information, the percentage 
of stock owned by such taxpayer and the nature of the other interests in 
the foreign corporation will be considered.
    (b) Deficiency procedures not to apply. The penalty imposed by 
section 6679 may be assessed and collected without regard to the 
deficiency procedures provided by subchapter B of chapter 63 of the 
Code.

[32 FR 15421, Nov. 3, 1967, as amended by T.D. 7288, 38 FR 27215, Oct. 
1, 1973; T.D. 7542, 43 FR 18552, May 1, 1978; T.D. 8028, 50 FR 23409, 
June 4, 1985]