Page:United States Statutes at Large Volume 102 Part 5.djvu/498

 102 STAT. 4504

26 USC 60501 "ote. 26 USC 60501 note.

PUBLIC LAW 100-690—NOV. 18, 1988 (A) Section 6721(b)(l)(A) of the Internal Revenue Code of 1986 is amended by inserting "(or, if greater, in the case of a return filed under section 60501, 10 percent of the taxable income derived from the transaction)" after "reported". (B) Section 7203 of the Internal Revenue Code of 1986 is amended by adding at the end thereof the following sentence: "In the case of a willful violation of any provision of section 60501, the first sentence of this section shall be applied by substituting '5 years' for '1 year'." (3) EFFECTIVE DATE.—The amendments made by this subsection shall apply to actions after the date of the enactment of this Act. (4) No INFERENCE.—No inference shall be drawn from the amendment made by paragraph (1) on the application of the Internal Revenue Code of 1986 without regard to such amendment. 0)) DISCLOSURE OF RETURNS ON CASH TRANSACTIONS.—

(1) IN GENERAL.—Subsection (i) of section 6103 of the Internal Revenue Code of 1986 is amended by adding at the end thereof the following new paragraph: "(8) DISCLOSURE OF RETURNS FILED UNDER SECTION 6050i.—The Secretary may, upon written request, disclose returns filed under section 60501 to officers and employees of any Federal agency whose official duties require such disclosure for the administration of Federal criminal statutes not related to tax administration." (2) CONFORMING AMENDMENTS.—

26 USC 6103 note.

(A) Subparagraph (A) of section 6103(p)(3) of the Internal Revenue Code of 1986 is amended by striking out "or (TXAXii)" and inserting in lieu thereof ", (7)(A)(ii), or (8)". (B) The material preceding subparagraph (A) of section 6103(p)(4) of the Internal Revenue Code of 1986 is amended— (i) by striking out "or (5)" and inserting in lieu thereof "(5), or (8)", and (ii) by striking out "(i)(3)(B)(i)," and inserting in lieu thereof "(i)(3)(B)(i) or (8)". (C) Clause (ii) of section 6103(p)(4)(F) of the Internal Revenue Code of 1986 is amended by striking out "or (5)" and inserting in lieu thereof "(5), or (8)". (3) EFFECTIVE DATE.—The amendments made by this subsection shall apply to requests made on or after the date of the enactment of this Act, but disclosures may be made pursuant to such amendments only during the 2-year period beginning on such date. (c) ENHANCEMENT OF UNDERCOVER CAPABILITIES OF THE INTERNAL REVENUE SERVICE.—

(1) IN GENERAL.—Section 7608(b)(l) of the Internal Revenue Code of 1986 is amended— (A) by striking out "or" before "any other" and inserting a comma, and (B) by inserting ", or any other law for which the Secretary has delegated investigatory authority to the Internal Revenue Service," after "responsible". (2) UNDERCOVER OPERATIONS.—Section 7608 of the Internal Revenue Code of 1986 is amended by adding at the end thereof the following new subsection:

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