Page:United States Statutes at Large Volume 118.djvu/1605

 118 STAT. 1575 PUBLIC LAW 108–357—OCT. 22, 2004 recommendations to address all abuses identified in the study. Not later than June 30, 2005, such Secretary or delegate shall submit to the Congress a report of such study. (b) INCOME TAX TREATIES.—The Secretary of the Treasury or the Secretary’s delegate shall conduct a study of United States income tax treaties to identify any inappropriate reductions in United States withholding tax that provide opportunities for shifting income out of the United States, and to evaluate whether existing anti abuse mechanisms are operating properly. The study shall include specific recommendations to address all inappropriate uses of tax treaties. Not later than June 30, 2005, such Secretary or delegate shall submit to the Congress a report of such study. (c) EFFECTIVENESS OF CORPORATE EXPATRIATION PROVISIONS.— The Secretary of the Treasury or the Secretary’s delegate shall conduct a study of the effectiveness of the provisions of this title on corporate expatriation. The study shall include such rec ommendations as such Secretary or delegate may have to improve the effectiveness of such provisions in carrying out the purposes of this title. Not later than December 31, 2006, such Secretary or delegate shall submit to the Congress a report of such study. Subtitle B—Provisions Relating to Tax Shelters Part I—Taxpayer Related Provisions SEC. 811. PENALTY FOR FAILING TO DISCLOSE REPORTABLE TRANS ACTIONS. (a) IN GENERAL.—Part I of subchapter B of chapter 68 (relating to assessable penalties) is amended by inserting after section 6707 the following new section: ‘‘SEC. 6707A. PENALTY FOR FAILURE TO INCLUDE REPORTABLE TRANSACTION INFORMATION WITH RETURN. ‘‘(a) IMPOSITION OF PENALTY.—Any person who fails to include on any return or statement any information with respect to a reportable transaction which is required under section 6011 to be included with such return or statement shall pay a penalty in the amount determined under subsection (b). ‘‘(b) AMOUNT OF PENALTY.— ‘‘(1) IN GENERAL.—Except as provided in paragraph (2), the amount of the penalty under subsection (a) shall be— ‘‘(A) $10,000 in the case of a natural person, and ‘‘(B) $50,000 in any other case. ‘‘(2) LISTED TRANSACTION.—The amount of the penalty under subsection (a) with respect to a listed transaction shall be— ‘‘(A) $100,000 in the case of a natural person, and ‘‘(B) $200,000 in any other case. ‘‘(c) DEFINITIONS.—For purposes of this section: ‘‘(1) REPORTABLE TRANSACTION.—The term ‘reportable transaction’ means any transaction with respect to which information is required to be included with a return or state ment because, as determined under regulations prescribed under section 6011, such transaction is of a type which the

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