Page:United States Statutes at Large Volume 102 Part 4.djvu/562

 102 STAT. 3532

PUBLIC LAW 100-647—NOV. 10, 1988 (D) The amendments made by section 1214 of the Reform Act; except for purposes of determining the amount of the foreign tax credit. (E) The amendment made by section 1241(a) of the Reform Act to the extent that, under a treaty obligation of the United States, interest described in section 884(fKlXA) of the 1986 Code (as added by such amendment) which is in excess of amounts deducted would be treated as other than United States source. (F) The amendment made by section 1241(b)(2)(A) of the Reform Act. (G) The amendment made by section 1241(a) of the Reform Act to the extent such amendment relates to section 884(f)(l)(B) of the 1986 Code. (H) The amendments made by section 1242 of the Reform Act to the extent they relate to paragraph (7) of section 864(c) of the 1986 Code. (I) The amendment made by section 1247(a) of the Reform Act. (J) The amendments made by section 123 of the Reform Act.

26 USC 861 note.

(4) TREATMENT OF TECHNICAL CORRECTIONS.—For purpOSeS o f

paragraphs (2) and (3), any amendment made by this title shall be treated as if it had been included in the provision of the Reform Act to which such amendment relates. (5) REPORTING OF CERTAIN TREATY-BASED RETURN POSITIONS.—

(A) Subchapter B of chapter 61 of the 1986 Code is amended by redesignating section 6114 as section 6115 and by inserting after section 6113 the following new section: "SEC. 6114. TREATY-BASED RETURN POSITIONS.

"(a) IN GENERAL.—Each taxpayer who, with respect to any tax imposed by this title, takes the position that a treaty of the United States overrules (or otherwise modifies) an internal revenue law of the United States shall disclose (in such manner as the Secretary may prescribe) such position— "(1) on the return of tax for such tax (or any statement attached to such return), or "(2) if no return of tax is reqiiired to be filed, in such form as the Secretary may prescribe. "(b) WAIVER AUTHORITY.—The Secretary may by r^ulations waive the requirements of subsection (a) with respect to classes of cases for which the Secretary determines that the waiver will not impede the assessment and collection of tax." (B) Part I of subchapter B of chapter 68 of the 1986 Code is amended by adding at the end thereof the following new section: "SEC. 6712. FAILURE TO DISCLOSE TREATY-BASED RETURN POSITIONS.

Law enforcement and crime.

"(a) GENERAL RULE.—If a taxpayer fails to meet the requirements of section 6114, there is hereby imposed a penalty equal to $1,000 ($10,000 i n the case of a C corporation) on each such failure. "(b) AUTHORITY TO WAIVE.—The Secret«uy may waive all or any

part of the penalty provided by this section on a showing by the taxpayer that there w a s reasonable cause for the failure and that the taxpayer acted in good faith.

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