Page:United States Statutes at Large Volume 120.djvu/2991

 120 STAT. 2960

26 USC 7623 note.

26 USC 62 note.

PUBLIC LAW 109–432—DEC. 20, 2006

(A) shall at all times operate at the direction of the Commissioner of Internal Revenue and coordinate and consult with other divisions in the Internal Revenue Service as directed by the Commissioner of Internal Revenue, (B) shall analyze information received from any individual described in section 7623(b) of the Internal Revenue Code of 1986 and either investigate the matter itself or assign it to the appropriate Internal Revenue Service office, and (C) in its sole discretion, may ask for additional assistance from such individual or any legal representative of such individual. (2) REQUEST FOR ASSISTANCE.—The guidance issued under paragraph (1) shall specify that any assistance requested under paragraph (1)(C) shall be under the direction and control of the Whistleblower Office or the office assigned to investigate the matter under paragraph (1)(A). No individual or legal representative whose assistance is so requested may by reason of such request represent himself or herself as an employee of the Federal Government. (c) REPORT BY SECRETARY.—The Secretary of the Treasury shall each year conduct a study and report to Congress on the use of section 7623 of the Internal Revenue Code of 1986, including— (1) an analysis of the use of such section during the preceding year and the results of such use, and (2) any legislative or administrative recommendations regarding the provisions of such section and its application. (d) EFFECTIVE DATE.—The amendments made by subsection (a) shall apply to information provided on or after the date of the enactment of this Act. SEC. 407. FRIVOLOUS TAX SUBMISSIONS.

(a) CIVIL PENALTIES.—Section 6702 is amended to read as follows: ‘‘SEC. 6702. FRIVOLOUS TAX SUBMISSIONS.

‘‘(a) CIVIL PENALTY FOR FRIVOLOUS TAX RETURNS.—A person shall pay a penalty of $5,000 if— ‘‘(1) such person files what purports to be a return of a tax imposed by this title but which— ‘‘(A) does not contain information on which the substantial correctness of the self-assessment may be judged, or ‘‘(B) contains information that on its face indicates that the self-assessment is substantially incorrect, and ‘‘(2) the conduct referred to in paragraph (1)— ‘‘(A) is based on a position which the Secretary has identified as frivolous under subsection (c), or ‘‘(B) reflects a desire to delay or impede the administration of Federal tax laws. ‘‘(b) CIVIL PENALTY FOR SPECIFIED FRIVOLOUS SUBMISSIONS.— ‘‘(1) IMPOSITION OF PENALTY.—Except as provided in paragraph (3), any person who submits a specified frivolous submission shall pay a penalty of $5,000. ‘‘(2) SPECIFIED FRIVOLOUS SUBMISSION.—For purposes of this section— ‘‘(A) SPECIFIED FRIVOLOUS SUBMISSION.—The term ‘specified frivolous submission’ means a specified submission if any portion of such submission—

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