26 U.S.C. § 6707A: Penalty for failure to include reportable transaction information with return

Any person who fails to include on any return or statement any information with respect to a reportable transaction which is required under section 6011 to be included with such return or statement shall pay a penalty in the amount determined under subsection (b). Except as otherwise provided in this subsection, the amount of the penalty under subsection (a) with respect to any reportable transaction shall be 75 percent of the decrease in tax shown on the return as a result of such transaction (or which would have resulted from such transaction if such transaction were respected for Federal tax purposes). in the case of a listed transaction, $200,000 ($100,000 in the case of a natural person), or in the case of any other reportable transaction, $50,000 ($10,000 in the case of a natural person). The amount of the penalty under subsection (a) with respect to any transaction shall not be less than $10,000 ($5,000 in the case of a natural person). The term “reportable transaction” means any transaction with respect to which information is required to be included with a return or statement because, as determined under regulations prescribed under section 6011, such transaction is of a type which the Secretary determines as having a potential for tax avoidance or evasion. The term “listed transaction” means a reportable transaction which is the same as, or substantially similar to, a transaction specifically identified by the Secretary as a tax avoidance transaction for purposes of section 6011. the violation is with respect to a reportable transaction other than a listed transaction, and rescinding the penalty would promote compliance with the requirements of this title and effective tax administration. Notwithstanding any other provision of law, any determination under this subsection may not be reviewed in any judicial proceeding. a statement of the facts and circumstances relating to the violation, the reasons for the rescission, and the amount of the penalty rescinded. which is required to file periodic reports under section 13 or 15(d) of the Securities Exchange Act of 1934 or is required to be consolidated with another person for purposes of such reports, and is required to pay a penalty under this section with respect to a listed transaction, is required to pay a penalty under section 6662A with respect to any reportable transaction at a rate prescribed under section 6662A(c), or is required to pay a penalty under section 6662(h) with respect to any reportable transaction and would (but for section 6662A(e)(2)(B)) have been subject to penalty under section 6662A at a rate prescribed under section 6662A(c), The penalty imposed by this section shall be in addition to any other penalty imposed by this title. a summary of the total number and aggregate amount of penalties imposed, and rescinded, under section 6707A of the Internal Revenue Code of 1986, and a description of each penalty rescinded under section 6707(c) of such Code and the reasons therefor.”