S.Amdt. 2404

SA 2404. Ms. CORTEZ MASTO submitted an amendment intended to be
proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to
the bill H.R. 1, to provide for reconciliation pursuant to title II of
H. Con. Res. 14; which was ordered to lie on the table; as follows:

Strike subsection (g) of section 70606 and insert the
following:
(g) Effective Dates.--
(1) In general.--The provisions of this section shall apply
to aid, assistance, and advice provided after July 1, 2021.
(2) Limitation on credits and refunds.--Subsection (d)
shall apply to credits and refunds allowed or made after the
date of the enactment of this Act.
(3) Extension of limitation on assessment.--The amendment
made by subsection (e) shall apply to assessments made after
the date of the enactment of this Act.
(4) Amendment to penalty for erroneous claim for refund or
credit.--The amendment made by subsection (f) shall apply to
claims for credit or refund after the date of the enactment
of this Act.
(h) Increase in Assessable Penalty on Covid-ertc Promoters
for Aiding and Abetting Understatements of Tax Liability.--
(1) In general.--If any COVID-ERTC promoter is subject to
penalty under section 6701(a) of the Internal Revenue Code of
1986 with respect to any COVID-ERTC document, notwithstanding
paragraphs (1) and (2) of section 6701(b) of such Code, the
amount of the penalty imposed under such section 6701(a)
shall be the greater of--
(A) $200,000 ($10,000, in the case of a natural person), or
(B) 75 percent of the gross income derived (or to be
derived) by such promoter with respect to the aid,
assistance, or advice referred to in section 6701(a)(1) of
such Code with respect to such document.
(2) No inference.--Paragraph (1) shall not be construed to
create any inference with respect to the proper application
of the knowledge requirement of section 6701(a)(3) of the
Internal Revenue Code of 1986.
(i) Failure to Comply With Due Diligence Requirements
Treated as Knowledge for Purposes of Assessable Penalty for
Aiding and Abetting Understatement of Tax Liability.--In the
case of any COVID-ERTC promoter, the knowledge requirement of
section 6701(a)(3) of the Internal Revenue Code of 1986 shall
be treated as satisfied with respect to any COVID-ERTC
document with respect to which such promoter provided aid,
assistance, or advice, if such promoter fails to comply with
the due diligence requirements referred to in subsection
(c)(1).
(j) Assessable Penalties for Failure to Disclose
Information, Maintain Client Lists, etc.--For purposes of
sections 6111, 6112, 6707 and 6708 of the Internal Revenue
Code of 1986--
(1) any COVID-related employee retention tax credit
(whether or not the taxpayer claims such COVID-related
employee retention tax credit) shall be treated as a listed
transaction (and as a reportable transaction) with respect to
any COVID-ERTC promoter if such promoter provides any aid,
assistance, or advice with respect to any COVID-ERTC document
relating to such COVID-related employee retention tax credit,
and
(2) such COVID-ERTC promoter shall be treated as a material
advisor with respect to such transaction.
______