Page:United States Statutes at Large Volume 100 Part 3.djvu/926

 100 STAT. 2734

PUBLIC LAW 99-514—OCT. 22, 1986

"(B) such penalty shall not be taken into account in applying the $20,000 limitation to penalties not determined under paragraph (1). "(c) COORDINATION WITH SECTION 6676.—No penalty shall be imposed under subsection (a) or (b) with respect to any return or statement if a penalty is imposed under section 6676 (relating to failure to supply identifying number) with respect to such return or statement. "SEC. 6724. WAIVER; DEFINITIONS AND SPECIAL RULES.

"(a) REASONABLE CAUSE WAIVER.—No penalty shall be imposed under this part with respect to any failure if it is shown that such failure is due to reasonable cause and not to willful neglect. "(b) PAYMENT OF PENALTY.—Any penalty imposed by this part shall be paid on notice and demand by the Secretary and in the same manner as tax. "(c) SPECIAL RULES FOR FAILURE To FILE INTEREST AND DIVIDEND RETURNS OR STATEMENTS.— "(1) HIGHER STANDARDS FOR WAIVER.—In the case of any

interest or dividend return or statement— "(A) subsection (a) shall not apply, but "(B) no penalty shall be imposed under this part if it is shown that the person otherwise liable for such penalty exercised due diligence in attempting to satisfy the requirement with respect to such return or statement. "(2) LIMITATIONS NOT TO APPLY.—In the case of any interest or dividend return or statement— "(A) the $100,000 limitations of sections 6721(a) and 6722(a) and the $20,000 limitation of section 6723(a) shall not apply (and any penalty imposed on any failure involving such a return or statement shall not be taken into account in applying such limitations to other penalties), and "(B) penalties imposed with respect to such returns or statements shall not be taken into account for purposes of applying such limitations with respect to other returns or statements. "(3) SELF ASSESSMENT.—Any penalty imposed under this part on any person with respect to an interest or dividend return or statement— "(A) shall be assessed and collected in the same manner as an excise tax imposed by subtitle D, and "(B) shall be due and payable on April 1 of the calendar year following the calendar year for which such return or statement is required. "(4) DEFICIENCY PROCEDURES NOT TO APPLY.—Subchapter B of

chapter 63 (relating to deficiency procedures for income, estate, gift, and certain excise taxes) shall not apply in respect of the assessment or collection of any penalty imposed under this part with respect to an interest or dividend return or statement. "(5) INTEREST OR DIVIDEND RETURN OR STATEMENT.—For purposes of this subsection, the term "interest or dividend return or statement' means— "(A) any return required by section 6042(a)(1), 6044(a)(1), or 6049(a), and "^B) any statement required under section 6042(c), 6044(e), or 6049(c).

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