Page:United States Statutes at Large Volume 101 Part 2.djvu/1255

 PUBLIC LAW 100-203—DEC. 22, 1987

101 STAT. 1330-461

"(9) such other information with respect to direct or indirect f transfers to, and other direct or indirect transactions and rela., tionships with, other organizations described in section 501(c) (other than paragraph (3) thereof) or section 527 as the Secretary may require to prevent— ^ "(A) diversion of funds from the organization's exempt purpose, or 1 "(B) misallocation of revenues or expenses, and "(10) such other information for purposes of carrying out the internal revenue laws as the Secretary may require." (b) EFFECTIVE DATE.—The amendments made by subsection (a) 26 USC 6033 shall apply to returns for years beginning after December 31, 1987. note. SEC. 10704. PENALTIES.

(a) GENERAL RULE.—Subsection (c) of section 6652 (relating to returns by exempt organizations and by certain trusts) is amended to read as follows: "(c) RETURNS BY EXEMPT ORGANIZATIONS AND BY CERTAIN TRUSTS.— "(1) ANNUAL RETURNS UNDER SECTION 6033.— ' "(A) PENALTY ON ORGANIZATION.—In the case of—

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"(i) a failure to file a return required under section 6033 (relating to returns by exempt organizations) on the date and in the manner prescribed therefor (determined with regard to any extension of time for filing), or "(ii) a failure to include any of the information required to be shown on a return filed under section 6033 or to show the correct information, there shall be paid by the exempt organization $10 for each day during which such failure continues. The maximum penalty under this subparagraph on failures with respect to any 1 return shall not exceed the lesser of $5,000 or 5 percent of the gross receipts of the organization for the year. "(B) MANAGERS.—

"(i) IN GENERAL.—The Secretary may make a written demand on any organization subject to penalty under subparagraph (A) specifying therein a reasonable future date by which the return shall be filed (or the information furnished) for purposes of this subparagraph. "(ii)

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FAILURE TO COMPLY WITH

DEMAND.—If

any

person fails to comply with any demand under clause (i) on or before the date specified in such demand, there shall be paid by the person failing to so comply $10 for each day after the expiration of the time specified in flns^ ~ such demand during which such failure continues. The ' n.: maximum penalty imposed under this subparagraph on '? ••n; all persons for failures with respect to any 1 return shall not exceed $5,000. "(C) PUBLIC INSPECTION OF ANNUAL RETURNS.—In the case V of a failure to comply with the requirements of subsection £A:.> (d) or (e)(1) of section 6104 (relating to public inspection of annual returns) on the date and in the manner prescribed therefor (determined with regard to any extension of time for filing), there shall be paid by the person failing to meet

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