26 U.S.C. § 6710 - Failure to Disclose That Contributions Are Nondeductible

(a) Imposition of penalty

If there is a failure to meet the requirement of section 6113 with respect to a fundraising solicitation by (or on behalf of) an organization to which section 6113 applies, such organization shall pay a penalty of $1,000 for each day on which such a failure occurred. The maximum penalty imposed under this subsection on failures by any organization during any calendar year shall not exceed $10,000.

(b) Reasonable cause exception

No penalty shall be imposed under this section with respect to any failure if it is shown that such failure is due to reasonable cause.

(c) $10,000 limitation not to apply where intentional disregard

If any failure to which subsection (a) applies is due to intentional disregard of the requirement of section 6113—

• (1) the penalty under subsection (a) for the day on which such failure occurred shall be the greater of—
  • (A) $1,000, or
  • (B) 50 percent of the aggregate cost of the solicitations which occurred on such day and with respect to which there was such a failure,
• (2) the $10,000 limitation of subsection (a) shall not apply to any penalty under subsection (a) for the day on which such failure occurred, and
• (3) such penalty shall not be taken into account in applying such limitation to other penalties under subsection (a).

(d) Day on which failure occurs

For purposes of this section, any failure to meet the requirement of section 6113 with respect to a solicitation—

• (1) by television or radio, shall be treated as occurring when the solicitation was telecast or broadcast,
• (2) by mail, shall be treated as occurring when the solicitation was mailed,
• (3) not by mail but in written or printed form, shall be treated as occurring when the solicitation was distributed, or
• (4) by telephone, shall be treated as occurring when the solicitation was made.

(Added Pub. L. 100–203, title X, § 10701(b), Dec. 22, 1987, 101 Stat. 1330–458.)