Page:United States Statutes at Large Volume 111 Part 1.djvu/1061

 PUBLIC LAW 105-34—AUG. 5, 1997 111 STAT. 1037 (6) Section 851 is amended by striking subsection (g) and redesignating subsection (h) as subsection (g). (7) Subsection (g) of section 851 (as redesignated by paragraph (6)) is amended by striking paragraph (3). (8) Section 817(h)(2) is amended— (A) by striking "851(b)(4)" in subparagraph (A) and inserting "851(b)(3)", and (B) by striking "851(b)(4)(A)(ir in subparagraph (B) and inserting "851(b)(3)(A)(i)". (9) Section 1092(f)(2) is amended by striking "Except for purposes of section 851(b)(3), the" and inserting "The". (c) EFFECTIVE DATE. —The amendments made by this section 26 USC 817 note. shall apply to taxable years beginning after the date of the enactment of this Act. Subtitle F—Taxpayer Protections SEC. 1281. REASONABLE CAUSE EXCEPTION FOR CERTAIN PENALTIES. (a) INFORMATION ON DEDUCTIBLE EMPLOYEE CONTRIBUTIONS. — Subsection (g) of section 6652 (relating to information required in connection with deductible employee contributions) is amended by adding at the end the following new sentence: "No penalty shall be imposed under this subsection on any failure which is shown to be due to reasonable cause and not willful neglect.". (b) REPORTS ON STATUS AS QUALIFIED SMALL BUSINESS. — Subsection (k) of section 6652 (relating to failure to make reports required under section 1202) is amended by adding at the end the following new sentence: "No penalty shall be imposed under this subsection on any failure which is shown to be due to reasonable cause and not willful neglect.". (c) RETURNS OF PERSONAL HOLDING COMPANY TAX BY FOREIGN CORPORATIONS.— Section 6683 (relating to failure of foreign corporation to file return of personal holding company tax) is amended by adding at the end the following new sentence: "No penalty shall be imposed under this section on any failure which is shown to be due to reasonable cause and not willful neglect.". (d) FAILURE TO MAKE REQUIRED PAYMENTS. —Subparagraph (A) of section 7519(f)(4) is amended by adding at the end the following new sentence: "No penalty shall be imposed under this subparagraph on any failure which is shown to be due to reasonable cause and not willful neglect.", (e) EFFECTIVE DATE.—The amendments made by this section 26 USC 6652 shall apply to taxable years beginning after the date of the enact- ^^te. ment of this Act. SEC 1282. CLARIFICATION OF PERIOD FOR FILING CLAIMS FOR REFUNDS. (a) IN GENERAL.— Paragraph (3) of section 6512(b) (relating to overpayment determined by Tax Court) is amended by adding at the end the following flush sentence: "In a case described in subparagraph (B) where the date of the mailing of the notice of deficiency is during the third year after the due date (with extensions) for filing the return . of tax and no return was filed before such date, the applicable period under subsections (a) and (b)(2) of section 6511 shall be 3 years.".

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