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(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: Scenario Penalty Per Return Calendar Year Maximum General Rule (§ 6721(a)(1)) $280 $3,392,000 Corrected on or before 30 days after required filing date (§ 6721(b)(1))

$50

$565,000 Corrected after 30th day but on or before August 1 (§ 6721(b)(2))

$110

$1,696,000

(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: Scenario Penalty Per Return Calendar Year Maximum General Rule (§ 6721(d)(1)(A)) $280 $1,130,500 Corrected on or before 30 days after required filing date (§ 6721(d)(1)(B))

$50

$197,500 Corrected after 30th day but on or before August 1 (§ 6721(d)(1)(C))

$110

$565,000

(3) for failure to file correct information returns due to intentional disregard of the filing requirement (or the correct information reporting requirement): 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) $560, 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) $560, or (ii) 5% of aggregate amount of items required to be reported correctly

No limit

Return required to be filed under § 6050I(a) (§ 6721(e)(2)(C)) Greater of (i) $28,260, or (ii) amount of cash No limit