Page 26

- 26 -

.51 Failure to File Correct Information Returns. For tax years beginning in 2017, the penalty amounts under § 6721 are: (1) for persons with average annual gross receipts for the most recent three taxable years of more than $5,000,000, for failure to file correct information returns are: Scenario Penalty Per Return Calendar Year Maximum General Rule (§ 6721(a)(1)) $260 $3,218,500 Corrected on or before 30 days after required filing date (§ 6721(b)(1))

$50

$536,000 Corrected after 30th day but on or before August 1 (§ 6721(b)(2))

$100

$1,609,000

(2) for persons with average annual gross receipts for the most recent three taxable years of $5,000,000 or less, for failure to file correct information returns are: Scenario Penalty Per Return Calendar Year Maximum General Rule (§ 6721(d)(1)(A)) $260 $1,072,500 Corrected on or before 30 days after required filing date (§ 6721(d)(1)(B))

$50

$187,500 Corrected after 30th day but on or before August 1 (§ 6721(d)(1)(C))

$100

$536,000

(3) for failure to file correct information returns due to intentional disregard of the filing requirement (or the correct information reporting requirement) are: Scenario Penalty Per Return Calendar Year Maximum Return other than a return required to be filed under §§ 6045(a), 6041A(b), 6050H, 6050I, 6050J, 6050K, or 6050L (§ 6721(e)(2)(A)) Greater of (i) $530, or (ii) 10% of aggregate amount of items required to be reported correctly No limit Return required to be filed under §§ 6045(a), 6050K, or 6050L (§ 6721(e)(2)(B)) Greater of (i) $530, or (ii) 5% of aggregate amount of No limit