Penalties that Apply to ExSTARS Reporting
IRC § 6719 -failure to register with IRS on Form 637
- $10,000 for each failure to register, and
- $1,000 a day for each day the failure continues.
IRC § 6725 provides a $10,000 penalty for each failure to report with respect to a vessel or facility. The penalty applies to any:
Failure to make a report on or before the due date;
Failure to include all of the required information; and /or
Inclusion of incorrect information on the report (if errors are corrected within 15 days, the filing will be treated as correct as of the date of the original filing if timely filed)
Exception to Penalties
The penalty shall not be imposed with respect to any failure if it is shown that such failure is due to reasonable cause.
Conditions Under Which Abatement of Penalties Will be Considered
Requests for abatement of penalties for “reasonable cause” must be made in writing and include a detailed description of the causes of the failure. In general, penalty abatement requests will not be considered until all ExSTARS reports for all periods due have been filed and accepted. Any outstanding “must fix” errors must have been corrected.