Volume 9, No. 2 www.antishyster.com email@example.com 972-418-8993
The “bad news” is, that if you area company required to file a return anddo not include all information (that in-cludes identifying numbers for each of your customers) on the forms you sendto an agency of government, pursuantto 26 USC 6721 and 6722, you can befined $50.00.The “good news” is, that there isa loophole for each of those sectionsalso. I’ll go into more detail, if you sodesire, (i.e., if you’re still interested inlearning) in a subsequent “part,” per-haps part II which will follow whentime allows.Respectfully, J.D. Kingston
12 Jul 1998
Thanks for the info. Keep it com-ing! Have a good day,Rick Shoemake
19 Jul 1998
Re: 26 USC 6109 Part III’ve studied a little history and itseems that mankind has had an affinityfor sleeping and eating for some 6000years now! Guess it will always be withus. 8-) It’s admirable to note that you’veplaced “spending time with your fam-ily” in the same category.Your previous P.S. reminds mesomething my father told me when Iwas 17 years old. He said, “Son, youcan be a success in any endeavor youchoose, if every day, you will committo working half a day–and it reallydoesn’t matter which 12 hours it is!”On to the subject matter at hand.In Part I, we learned that pursuant to26 USC 6109, a company is requiredto “request” an identifying numberfrom a customer/employee, but a com-clusion of incorrect information”), thecompany can be fined $50 [26 USC6721(a)( 1)] for each failure but saidfines shall not exceed $250,000!!!Whoa!
26 USC 6721(e) Penalty in caseof
(Emph.added–JK.).If one or more failures describedin 26 USC 6721(a)(2) are due to
(Emphasis added –JK.) of the filing requirement (or thecorrect information reporting require-ment), then, with respect to each suchfailure –26 USC 6721(e)(2) the penaltyimposed under subsection 26 USC6721(a) shall be $100 . . .26 USC 672l(e)(3) in the case of any penalty determined under para-graph 26 USC 6721(2) - 26 USC672l(e)(3)(A) the $250,000 limitationunder 26 USC 6721(a)(l) shall not ap-ply . . .So now, if you omit an identify-ing number with “intentional disregard”[26 USC 6721(e)] your fine (or penalty)is increased from $50 to $100 per oc-currence. The maximum of $250,000is lifted and you may now be fined aninfinite amount!
It’s no wonder companies don’t “re-quest” a number. They see these statutesand they
a number. Who in theirright mind would subject their companyto such huge fines (and still expect to keeptheir jobs–so they can “ sleep, eat, see myfamily, etc.”)?
Sounds pretty grim–so far. I toldyou there was “good news” too. Maybewe’ll get to it next time. Keep balanc-ing the “customer service” with qual-ity “family time.” Wish I would havedone better!Respectfully, J.D. Kingston
25 Jul 1998
26 USC 6109 Part IIIIn Part II, we learned that any per-son who is required to submit a reportthat includes provisions for a TIN [orEIN (Employers Identification Num-ber) or SSN], and omits that informa-tion, is subject to a fine of $50 per oc-currence, but said fine shall not exceed$250,000 in any year! Now, the goodnews, aka the truth.pany is not required to “obtain” an iden-tifying number.Now, suppose you have a cus-tomer with a “non-interest bearing”account and it’s time to file a report withthe banking authorities or some otherentity. Suppose you enter the person’sname on the report and leave blank thecorresponding box that asks for thatperson’s identifying number. Now whathappens?26 USC 6721 is titled “Failure tofile
information returns.” (Em-phasis added. Leaving off a number that
you never obtained
does not make thereturn “incorrect.”)
26 USC 6721(a) Imposition of Pen-alty.
26 USC 6721 (a)(1)
In general.In the case of a failure described in para-graph (a)(2) [below], by any personwith respect to an information return,such person shall pay a penalty of $50for each return with respect to whichsuch a failure occurs, but the totalamount imposed on such person for allsuch failures during any calendar yearshall not exceed $250,000.
26 USC 6721(a)(2)
Failures sub- ject
to penalty. For purposes of paragraph(1), the failures described in this paragraphare —
26 USC 6721(a)(2)(B)
any fail-ure to include all of the information
to be shown on the return or theinclusion of incorrect information.[emph. add.]So, if a company is “required”[26 USC 6721(a)(2)(A)] by its regula-tory authorities, to include “informa-tion” (such as an identifying number)on a return, and it fails to do so (ormakes an innocent mistake by “the in-