((a)) ** Reasonable cause waiver** No penalty shall be imposed under this part with respect to any failure if it is shown that such failure is due to reasonable cause and not to willful neglect.

((b)) ** Payment of penalty** Any penalty imposed by this part shall be paid on notice and demand by the Secretary and in the same manner as tax.

((c)) ** Special rule for failure to meet magnetic media requirements** No penalty shall be imposed under section 6721 solely by reason of any failure to comply with the requirements of the regulations prescribed under section 6011(e)(2), except to the extent that such a failure occurs with respect to more than the applicable number (determined under section 6011(e)(5) with respect to the calendar year to which such returns relate) of information returns or with respect to a return described in section 6011(e)(4).

((d)) ** Definitions** For purposes of this part—

((1)) ** Information return** The term “information return” means—

((A)) any statement of the amount of payments to another person required by—

((i)) section 6041(a) or (b) (relating to certain information at source),

((ii)) section 6042(a)(1) (relating to payments of dividends),

((iii)) section 6044(a)(1) (relating to payments of patronage dividends),

((iv)) section 6049(a) (relating to payments of interest),

((v)) section 6050A(a) (relating to reporting requirements of certain fishing boat operators),

((vi)) section 6050N(a) (relating to payments of royalties),

((vii)) section 6051(d) (relating to information returns with respect to income tax withheld),

((viii)) section 6050R (relating to returns relating to certain purchases of fish), or

((ix)) section 110(d) (relating to qualified lessee construction allowances for short-term leases),

((B)) any return required by—

((i)) section 6041A(a) or (b) (relating to returns of direct sellers),

((ii)) section 6043A(a) (relating to returns relating to taxable mergers and acquisitions),

((iii)) section 6045(a) or (d) (relating to returns of brokers),

((iv)) section 6045B(a) (relating to returns relating to actions affecting basis of specified securities),

((v)) section 6050H(a) or (h)(1) (relating to mortgage interest received in trade or business from individuals),

((vi)) section 6050I(a) or (g)(1) (relating to cash received in trade or business, etc.),

((vii)) section 6050J(a) (relating to foreclosures and abandonments of security),

((viii)) section 6050K(a) (relating to exchanges of certain partnership interests),

((ix)) section 6050L(a) (relating to returns relating to certain dispositions of donated property),

((x)) section 6050P (relating to returns relating to the cancellation of indebtedness by certain financial entities),

((xi)) section 6050Q (relating to certain long-term care benefits),

((xii)) section 6050S (relating to returns relating to payments for qualified tuition and related expenses),

((xiii)) section 6050T (relating to returns relating to credit for health insurance costs of eligible individuals),

((xiv)) section 6052(a) (relating to reporting payment of wages in the form of group-life insurance),

((xv)) section 6050V (relating to returns relating to applicable insurance contracts in which certain exempt organizations hold interests),

((xvi)) section 6053(c)(1) (relating to reporting with respect to certain tips),

((xvii)) subsection (b) or (e) of section 1060 (relating to reporting requirements of transferors and transferees in certain asset acquisitions),

((xviii)) section 4101(d) (relating to information reporting with respect to fuels taxes),

((xix)) subparagraph (C) of section 338(h)(10) (relating to information required to be furnished to the Secretary in case of elective recognition of gain or loss),

((xx)) section 264(f)(5)(A)(iv) (relating to reporting with respect to certain life insurance and annuity contracts),

((xxi)) section 6050U (relating to charges or payments for qualified long-term care insurance contracts under combined arrangements),

((xxii)) section 6039(a) (relating to returns required with respect to certain options),

((xxiii)) section 6050W (relating to returns to payments made in settlement of payment card transactions),

((xxiv)) section 6055 (relating to returns relating to information regarding health insurance coverage),

((xxv)) section 6056 (relating to returns relating to certain employers required to report on health insurance coverage),

((xxvi)) section 6050Y (relating to returns relating to certain life insurance contract transactions),

((xxvii)) section 6045A(d) (relating to returns for certain digital assets),

((xxviii)) section 6050Z (relating to reports relating to long-term care premium statements), or

((xxix)) section 6050AA(a) (relating to returns relating to applicable passenger vehicle loan interest received in trade or business from individuals),

((C)) any statement of the amount of payments to another person required to be made to the Secretary under—

((i)) section 408(i) (relating to reports with respect to individual retirement accounts or annuities), or

((ii)) section 6047(d) (relating to reports by employers, plan administrators, etc.), and

((D)) any statement required to be filed with the Secretary under section 6035.

((2)) ** Payee statement** The term “payee statement” means any statement required to be furnished under—

((A)) section 6031(b) or (c), 6034A, or 6037(b) (relating to statements furnished by certain pass-thru entities),

((B)) section 6039(b) (relating to information required in connection with certain options),

((C)) section 6041(d) (relating to information at source),

((D)) section 6041A(e) (relating to returns regarding payments of remuneration for services and direct sales),

((E)) section 6042(c) (relating to returns regarding payments of dividends and corporate earnings and profits),

((F)) subsections (b) and (d) of section 6043A (relating to returns relating to taxable mergers and acquisitions),

((G)) section 6044(e) (relating to returns regarding payments of patronage dividends),

((H)) section 6045(b) or (d) (relating to returns of brokers),

((I)) section 6045A (relating to information required in connection with transfers of covered securities to brokers),

((J)) subsections (c) and (e) of section 6045B (relating to returns relating to actions affecting basis of specified securities),

((K)) section 6049(c) (relating to returns regarding payments of interest),

((L)) section 6050A(b) (relating to reporting requirements of certain fishing boat operators),

((M)) section 6050H(d) or (h)(2) (relating to returns relating to mortgage interest received in trade or business from individuals),

((N)) section 6050I(e) or paragraph (4) or (5) of section 6050I(g) (relating to cash received in trade or business, etc.),

((O)) section 6050J(e) (relating to returns relating to foreclosures and abandonments of security),

((P)) section 6050K(b) (relating to returns relating to exchanges of certain partnership interests),

((Q)) section 6050L(c) (relating to returns relating to certain dispositions of donated property),

((R)) section 6050N(b) (relating to returns regarding payments of royalties),

((S)) section 6050P(d) (relating to returns relating to the cancellation of indebtedness by certain financial entities),

((T)) section 6050Q(b) (relating to certain long-term care benefits),

((U)) section 6050R(c) (relating to returns relating to certain purchases of fish),

((V)) section 6051 (relating to receipts for employees),

((W)) section 6052(b) (relating to returns regarding payment of wages in the form of group-term life insurance),

((X)) section 6053(b) or (c) (relating to reports of tips),

((Y)) section 6048(b)(1)(B) (relating to foreign trust reporting requirements),

((Z)) section 408(i) (relating to reports with respect to individual retirement plans) to any person other than the Secretary with respect to the amount of payments made to such person,

((AA)) section 6047(d) (relating to reports by plan administrators) to any person other than the Secretary with respect to the amount of payments made to such person,

((BB)) section 6050S(d) (relating to returns relating to qualified tuition and related expenses),

((CC)) section 264(f)(5)(A)(iv) (relating to reporting with respect to certain life insurance and annuity contracts),

((DD)) section 6050T (relating to returns relating to credit for health insurance costs of eligible individuals),

((EE)) section 6050U (relating to charges or payments for qualified long-term care insurance contracts under combined arrangements),

((FF)) section 6050W(f) (relating to returns relating to payments made in settlement of payment card transactions),

((GG)) section 6055(c) (relating to statements relating to information regarding health insurance coverage),

((HH)) section 6056(c) (relating to statements relating to certain employers required to report on health insurance coverage),

((II)) section 6035 (other than a statement described in paragraph (1)(D)),

((JJ)) section 6226(a)(2) (relating to statements relating to alternative to payment of imputed underpayment by partnership) or under any other provision of this title which provides for the application of rules similar to such section,

((KK)) subsection (a)(2), (b)(2), or (c)(2) of section 6050Y (relating to returns relating to certain life insurance contract transactions),

((LL)) section 6050Z (relating to reports relating to long-term care premium statements),

((MM)) section 6050AA(c) (relating to statements relating to applicable passenger vehicle loan interest received in trade or business from individuals),

((NN)) section 6039K(c) (relating to disposition of qualified opportunity fund investments), or

((OO)) section 6039L (relating to information required from certain qualified opportunity zone businesses and qualified rural opportunity zone businesses).

((3)) ** Specified information reporting requirement** The term “specified information reporting requirement” means—

((A)) the notice required by section 6050K(c)(1) (relating to requirement that transferor notify partnership of exchange),

((B)) any requirement contained in the regulations prescribed under section 6109 that a person—

((i)) include his TIN on any return, statement, or other document (other than an information return or payee statement),

((ii)) furnish his TIN to another person, or

((iii)) include on any return, statement, or other document (other than an information return or payee statement) made with respect to another person the TIN of such person,

((C)) any requirement under section 6109(h) that—

((i)) a person include on his return the name, address, and TIN of another person, or

((ii)) a person furnish his TIN to another person.

((4)) ** Required filing date** The term “required filing date” means the date prescribed for filing an information return with the Secretary (determined with regard to any extension of time for filing).

((e)) ** Special rule for certain partnership returns** If any partnership return under section 6031(a) is required under section 6011(e) to be filed on magnetic media or in other machine-readable form, for purposes of this part, each schedule required to be included with such return with respect to each partner shall be treated as a separate information return.

((f)) ** Special rule for returns of educational institutions related to higher education tuition and related expenses** No penalty shall be imposed under section 6721 or 6722 solely by reason of failing to provide the TIN of an individual on a return or statement required by section 6050S(a)(1) if the eligible educational institution required to make such return contemporaneously makes a true and accurate certification under penalty of perjury (and in such form and manner as may be prescribed by the Secretary) that it has complied with standards promulgated by the Secretary for obtaining such individual’s TIN.

((g)) ** Special rule for reporting certain additional taxes** No penalty shall be imposed under section 6721 or 6722 if—

((1)) a person makes a return or report under section 6047(d) or 408(i) with respect to any distribution,

((2)) such distribution is made following a rollover, transfer, or exchange described in section 72(t)(4)(C) or section 72(q)(3)(C),

((3)) in making such return or report the person relies upon a certification provided by the taxpayer that the distributions satisfy the requirements of section 72(t)(4)(C)(iii) or section 72(q)(3)(B)(iii), as applicable, and

((4)) such person does not have actual knowledge that the distributions do not satisfy such requirements.