111th CONGRESS
2d Session
S. 2917
AN ACT
To amend the Internal Revenue Code of 1986 to modify the penalty for failure to disclose certain reportable transactions and the penalty for submitting a bad check to the Internal Revenue Service, to modify certain rules relating to Federal vendors, and for other purposes.
Short title
This Act may be cited as the
Small Business Penalty Fairness Act of
2009
.
Limitation on penalty for failure to disclose reportable transactions based on resulting tax benefits
In general
Subsection (b) of section 6707A of the Internal Revenue Code of 1986 is amended to read as follows:
Amount of penalty
In general
Except as otherwise provided in this subsection, the amount of the penalty under subsection (a) with respect to any reportable transaction shall be 75 percent of the decrease in tax shown on the return as a result of such transaction (or which would have resulted from such transaction if such transaction were respected for Federal tax purposes).
Maximum penalty
The amount of the penalty under subsection (a) with respect to any reportable transaction shall not exceed—
in the case of a listed transaction, $200,000 ($100,000 in the case of a natural person), or
in the case of any other reportable transaction, $50,000 ($10,000 in the case of a natural person).
Minimum penalty
The amount of the penalty under subsection (a) with respect to any transaction shall not be less than $10,000 ($5,000 in the case of a natural person).
.
Effective date
The amendment made by this section shall apply to penalties assessed after December 31, 2006.
Report on tax shelter penalties and certain other enforcement actions
In general
The Commissioner of Internal Revenue, in consultation with the Secretary of the Treasury, shall submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate an annual report on the penalties assessed by the Internal Revenue Service during the preceding year under each of the following provisions of the Internal Revenue Code of 1986:
Section 6662A (relating to accuracy-related penalty on understatements with respect to reportable transactions).
Section 6700(a) (relating to promoting abusive tax shelters).
Section 6707 (relating to failure to furnish information regarding reportable transactions).
Section 6707A (relating to failure to include reportable transaction information with return).
Section 6708 (relating to failure to maintain lists of advisees with respect to reportable transactions).
Additional information
The report required under subsection (a) shall also include information on the following with respect to each year:
Any action taken under section 330(b) of title 31, United States Code, with respect to any reportable transaction (as defined in section 6707A(c) of the Internal Revenue Code of 1986).
Any extension of the time for assessment of tax enforced, or assessment of any amount under such an extension, under paragraph (10) of section 6501(c) of the Internal Revenue Code of 1986.
Date of report
The first report required under subsection (a) shall be submitted not later than June 1, 2010.
Application of bad checks penalty to electronic payments
In general
Section 6657 of the Internal Revenue Code of 1986 is amended—
by striking If any check or money
order in payment of any amount
and inserting If any instrument
in payment, by any commercially acceptable means, of any amount
,
and
by striking such check
each
place it appears and inserting such instrument
.
Effective dates
The amendments made by this section shall apply to instruments tendered after the date of the enactment of this Act.
Application of levy to payments to Federal vendors relating to property
In general
Section 6331(h)(3) of the Internal Revenue
Code of 1986 is amended by striking goods or services
and
inserting property, goods, or services
.
Effective date
The amendment made by this section shall apply to levies approved after the date of the enactment of this Act.
Passed the Senate February 9 (legislative day, February 8), 2010.
Secretary