[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: 26CFR301.6688-1]

[Page 423-424]
 
                       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. 301.6688-1  Assessable penalties with respect to information required 

to be furnished under section 7654 on allocation of tax to Guam or the United 
          States.

    (a) In general. Each individual to whom paragraph (a)(2) of Sec. 
301.7654-1 applies for a taxable year who fails to file for such year 
the information return required by paragraph (d) of such section within 
the time prescribed therein, or who files such a return but does not 
show the information required thereon, shall, in addition to any 
criminal penalty provided by law, pay a penalty of $100 for each such 
failure.
    (b) Manner of payment. The penalty set forth in paragraph (a) of 
this section shall be paid in the same manner as tax upon the issuance 
of a notice and demand therefor.
    (c) Reasonable cause. The penalty set forth in paragraph (a) of this 
section shall not apply if it is established, to the satisfaction of the 
district director (or of the Commissioner of Revenue and Taxation of 
Guam if the individual was required to file his return of income tax for 
the taxable year with Guam) that the failure to file the information 
return or furnish the information within the prescribed time was due to 
reasonable cause and not to willful neglect. An individual who wishes to 
avoid the penalty must make an affirmative showing of all facts alleged 
as a reasonable cause for his failure to file the information return on 
time, or furnish the information on time, in the form of a written 
statement containing a declaration that it is made under penalties of 
perjury. Such statement must be filed with the district director (or 
with the Commissioner of Revenue and Taxation, Agana, Guam 96910, if the 
individual was required to file his return of income tax for the taxable 
year with Guam). In determining whether there was reasonable cause for 
failure to furnish the required information, account will be taken of 
the fact that the individual was unable to furnish the required 
information in spite of the exercise of ordinary business care and 
prudence in his effort to furnish the information. An individual will be 
considered to have exercised ordinary business care and prudence in his 
effort to

[[Page 424]]

furnish the required information if he made reasonable efforts to 
furnish the information but was unable to do so because of a lack of 
sufficient facts on which to make a proper determination. See paragraph 
(b) of Sec. 1.935-1 of this chapter (Income Tax Regulations) for the 
rules which specify where returns of income tax must be filed for the 
taxable year by individuals to whom this section applies.
    (d) Effective date. This section shall apply for taxable years 
beginning after December 31, 1972.

[T.D. 7385, 40 FR 50264, Oct. 29, 1975]