Page:United States Statutes at Large Volume 101 Part 2.djvu/1257

 PUBLIC LAW 100-203—DEC. 22, 1987

101 STAT. 1330-463

"SEC. 6685. ASSESSABLE PENALTY WITH RESPECT TO PUBLIC INSPECTION REQUIREMENTS FOR CERTAIN TAX-EXEMPT ORGANIZATIONS.

26 USC 6685.

"In addition to the penalty imposed by section 7207 (relating to fraudulent returns, statements, or other documents), any person who is required to comply with the requirements of subsection (d) or (e) of section 6104 and who fails to so comply with respect to any return or application, if such failure is willful, shall pay a penalty of $1,000 with respect to each such return or application.' (2) CLERICAL AMENDMENT.—The table of sections for part I of subchapter B of chapter 68 is amended by striking out the f item relating to section 6685 and inserting in lieu thereof the following: "Sec. 6685. Assessable penalty with respect to public inspection requirements for certain tax-exempt organizations." FURNISHING FRAUDULENT INFORMATION.—Section 7207 (relat-

(c) ing to fraudulent returns, statements, or other documents) is amended by striking out "subsection (d) of section 6104" and inserting in lieu thereof "subsection (d) or (e) of section 6104". (d) EFFECTIVE DATE.—The amendments made by this section shall 26 USC 6652 apply—

note.

(1) to returns for years beginning after December 31, 1986, and (2) on and after the date of the enactment of this Act in the case of applications submitted to the Internal Revenue Service— (A) after July 15, 1987, or (B) on or before July 15, 1987, if the organization has a copy of the application on July 15, 1987. SEC. 10705. REQUIRED DISCLOSURE THAT CERTAIN INFORMATION OR SERVICE AVAILABLE FROM FEDERAL GOVERNMENT.

(a) GENERAL RULE.—Part I of subchapter B of chapter 68 (relating to assessable penalties) is amended by adding at the end thereof the following new section: "SEC. 6711. FAILURE BY TAX-EXEMPT ORGANIZATION TO DISCLOSE THAT CERTAIN INFORMATION OR SERVICE AVAILABLE FROM FEDERAL GOVERNMENT. "(a) IMPOSITION OF PENALTY.—If—

"(1) a tax-exempt organization offers to sell (or solicits money for) specific information or a routine service for any individual which could be readily obtained by such individual free of charge (or for a nominal charge) from an agency of the Federal Government, "(2) the tax-exempt organization, when making such offer or solicitation, fails to make an express statement (in a conspicuous and easily recognizable format) that the information or service can be so obtained, and "(3) such failure is due to intentional disregard of the requirements of this subsection, such organization shall pay a penalty determined under subsection (b) for each day on which such a failure occurred. "(h) AMOUNT OF PENALTY.—The penalty under subsection (a) for any day on which a failure referred to in such subsection occurred shall be the greater of— "(1) $1,000, or

26 USC 6711.

�