Internal Revenue Code:Sec. 9707. Failure to pay premium

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Location in Internal Revenue Code

     TITLE 26 - INTERNAL REVENUE CODE
      Subtitle J - Coal Industry Health Benefits
       CHAPTER 99 - COAL INDUSTRY HEALTH BENEFITS
        Subchapter B - Combined Benefit Fund
         PART III - ENFORCEMENT
       

Statute

    Sec. 9707. Failure to pay premium

    (a) Failures to Pay.--
            (1) Premiums for eligible beneficiaries.--There is hereby 
        imposed a penalty on the failure of any assigned operator to pay 
        any premium required to be paid under section 9704 with respect 
        to any eligible beneficiary.
            (2) <<NOTE: Penalty.>> Contributions required under the 
        mining laws.--There is hereby imposed a penalty on the failure 
        of any person to make a contribution required under section 
        402(h)(5)(B)(ii) of the Surface Mining Control and Reclamation 
        Act of 1977 to a plan referred to in section 402(h)(2)(C) of 
        such Act. For purposes of applying this section, each such 
        required monthly contribution for the hours worked of any 
        individual shall be treated as if it were a premium required to 
        be paid under section 9704 with respect to an eligible 
        beneficiary.
    (b) Amount of penalty
      The amount of the penalty imposed by subsection (a) on any
    failure with respect to any eligible beneficiary shall be $100 per
    day in the noncompliance period with respect to any such failure.
    (c) Noncompliance period
      For purposes of this section, the term ''noncompliance period''
    means, with respect to any failure to pay any premium or
    installment thereof, the period -
        (1) beginning on the due date for such premium or installment,
      and
        (2) ending on the date of payment of such premium or
      installment.
    (d) Limitations on amount of penalty
      (1) In general
        No penalty shall be imposed by subsection (a) on any failure
      during any period for which it is established to the satisfaction
      of the Secretary of the Treasury that none of the persons
      responsible for such failure knew, or exercising reasonable
      diligence would have known, that such failure existed.
      (2) Corrections
        No penalty shall be imposed by subsection (a) on any failure if
      -
          (A) such failure was due to reasonable cause and not to
        willful neglect, and
          (B) such failure is corrected during the 30-day period
        beginning on the 1st date that any of the persons responsible
        for such failure knew, or exercising reasonable diligence would
        have known, that such failure existed.
      (3) Waiver
        In the case of a failure that is due to reasonable cause and
      not to willful neglect, the Secretary of the Treasury may waive
      all or part of the penalty imposed by subsection (a) for failures
      to the extent that the Secretary determines, in his sole
      discretion, that the payment of such penalty would be excessive
      relative to the failure involved.
    (e) Liability for penalty
      The person failing to meet the requirements of section 9704 shall
    be liable for the penalty imposed by subsection (a).
    (f) Treatment
      For purposes of this title, the penalty imposed by this section
    shall be treated in the same manner as the tax imposed by section
    4980B.
 

Sources

    (Added Pub. L. 102-486, title XIX, Sec. 19143(a), Oct. 24, 1992,
    106 Stat. 3050; amended Pub. L. 104-188, title I, Sec. 1704(t)(65),
    Aug. 20, 1996, 110 Stat. 1890.)
 

Miscellaneous

                                 AMENDMENTS

2006 - Tax Relief and Health Care Act of 2006 (P.L. 109-432)
Section 213(b) Enforcement of Obligations.--
            (1) Failure to pay premiums.--Section 9707(a) of the 
        Internal Revenue Code of 1986 is amended to read as follows:
    ``(a) Failures to Pay.--
            ``(1) Premiums for eligible beneficiaries.--There is hereby 
        imposed a penalty on the failure of any assigned operator to pay 
        any premium required to be paid under section 9704 with respect 
        to any eligible beneficiary.
            ``(2) <<NOTE: Penalty.>> Contributions required under the 
        mining laws.--There is hereby imposed a penalty on the failure 
        of any person to make a contribution required under section 
        402(h)(5)(B)(ii) of the Surface Mining Control and Reclamation 
        Act of 1977 to a plan referred to in section 402(h)(2)(C) of 
        such Act. For purposes of applying this section, each such 
        required monthly contribution for the hours worked of any 
        individual shall be treated as if it were a premium required to 
        be paid under section 9704 with respect to an eligible 
        beneficiary.''.

      1996 - Subsec. (d)(1). Pub. L. 104-188 struck out comma after
    ''diligence''.