I understood the sections of the law you cited. The law does not specify a specific penalty for that particular issue. This means it defaults to the charachter of how this happened.
if it is a matter of underreporting or act of ommission, then it is penalized according to those acts which is the same as penalties for non reporting of personal income, or corporate income. The penalty formulas are very complicated. We discussed this issue with IRS attorneys at a meeting in Baltimore last week, and it was told to us by IRS attorneys that one can not accurately determine the penalties without a special calculator used by the IRS and not available to the public.
So I can only speak generally about them.
If however, the ommission was by fraud, and the IRS proves Fraud, then the penalties and interest are treated as fraud listed in the schedule.
Not every violatin of the statute carries its own unicque penalty and interest. it is based rather on the charachter of the event.
Since I do not know the details sufficiently to know if this was fraud or a simple ommission, I can not tell you exactly which penalty class this would be. That is why I gave you the list.
In most instances, a first occurance and even a second occurance would be treated as a simple act of ommission.