Page:United States Statutes at Large Volume 103 Part 3.djvu/320

 103 STAT. 2388 Improved Penalty Administration and Compliance Tax Act. 26 USC 1 note. PUBLIC LAW 101-239—DEC. 19, 1989 Subtitle G—Revision of Civil Penalties SEC. 7701. SHORT TITLE. This subtitle may be cited as the "Improved Penalty Administra- tion and Compliance Tax Act". PART I—DOCUMENT AND INFORMATION RETURN PENALTIES SEC 7711. UNIFORM PENALTIES FOR FAILURES TO COMPLY WITH CER. TAIN INFORMATION REPORTING REQUIREMENTS. (a) GENERAL RULE.— Part n of subchapter B of chapter 68 (relating to failure to file certain information returns or statements) is amended to read as follows: "PART II—FAILURE TO COMPLY WITH CERTAIN INFORMATION REPORTING REQUIREMENTS "Sec. 6721. Failure to file correct information returns. ^ "Sec. 6722. Failure to furnish correct payee statements. "Sec. 6723. Failure to comply with other information reporting require- ments. "Sec. 6724. Waiver; definitions and special rules. "SEC 6721. FAILURE TO FILE CORRECT INFORMATION RETURNS. "(a) IMPOSITION OP PENALTY.— "(1) IN GENERAL. —In the case of a failure described in para- graph (2) by any person with respect to an information return, such person shall pay a penalty of $50 for each return with respect to which such a failure occurs, but the total amount imposed on such person for all such failures during any cal- endar year shall not exceed $250,000. "(2) FAILURES SUBJECT TO PENALTY. —For purposes of para- graph (1), the failures described in this paragraph are— "(A) any failure to file an information return with the Secretary on or before the required filing date, and "(B) any failure to include all of the ii^ormation required to be shown on the return or the inclusion of incorrect information. "(b) REDUCTION WHERE CORRECTION IN SPECIFIED PERIOD. — "(1) Ck>RRECTiON WTFHiN 30 DAYS. — If any failure described in subsection (a)(2) is corrected on or before the day 30 days after the requiredfilingdate— (A) the penalty imposed by subsection (a) shall be $15 in lieu of $50, and "(B) the total amount imposed on the person for all such failures during any calendar year which are so corrected shall not exceed $75,000. "(2) FAILURES CORRECTED ON OR BEFORE AUGUST i. — If any failure described in subsection (a)(2) is corrected after the 30tn day referred to in paragraph (1) but on or before August 1 of the calendcu* year in which the required filing date occurs— "(A) the penalty imposed by subsection (a) shall be $30 in lieu of $50, and

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