# § 6704. Failure to keep records necessary to meet reporting requirements under section 6047(d)
**(a)** **Liability for penalty** Any person who—
shall pay a penalty for each calendar year for which there is any failure to keep such records.
**(1)** has a duty to report or may have a duty to report any information under section 6047(d), and
**(2)** fails to keep such records as may be required by regulations prescribed under section 6047(d) for the purpose of providing the necessary data base for either current reporting or future reporting,
**(b)** **Amount of penalty**
**(1)** **In general** The penalty of any person for any calendar year shall be $50, multiplied by the number of individuals with respect to whom such failure occurs in such year.
**(2)** **Maximum amount** The penalty under this section of any person for any calendar year shall not exceed $50,000.
**(c)** **Exceptions**
**(1)** **Reasonable cause** No penalty shall be imposed by this section on any person for any failure which is shown to be due to reasonable cause and not to willful neglect.
**(2)** **Inability to correct previous failure** No penalty shall be imposed by this section on any failure by a person if such failure is attributable to a prior failure which has been penalized under this section and with respect to which the person has made all reasonable efforts to correct the failure.
**(3)** **Pre-1983 failures** January 1, 1983
No penalty shall be imposed by this section on any person for any failure which is attributable to a failure occurring before , if the person has made all reasonable efforts to correct such pre-1983 failure.
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**Source Credit**: (Added Pub. L. 97–248, title III, § 334(c)(1), Sept. 3, 1982, 96 Stat. 627; amended Pub. L. 99–514, title XVIII, § 1848(e)(1), Oct. 22, 1986, 100 Stat. 2857.)
## Editorial Notes
### Amendments
1986— substituted “section 6047(d)” for “section 6047(e)” in section catchline and in subsec. (a).
## Statutory Notes and Related Subsidiaries
### Effective Date of 1986 Amendment
Amendment by effective, except as otherwise provided, as if included in the provisions of the Tax Reform Act of 1984, , to which such amendment relates, see , set out as a note under .
### Effective Date
Section effective , see , set out as a note under .
### Plan Amendments Not Required Until January 1, 1989
For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§ 1101–1147 and 1171–1177] or title XVIII [§§ 1800–1899A] of require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after , see , as amended, set out as a note under .