Page:United States Statutes at Large Volume 120.djvu/402

 PUBLIC LAW 109–222—MAY 17, 2006

120 STAT. 371

the entity has become a party to the transaction. Such term shall not include a transaction which is a prohibited reportable transaction at the time the entity became a party to the transaction. ‘‘(f) REGULATORY AUTHORITY.—The Secretary is authorized to promulgate regulations which provide guidance regarding the determination of the allocation of net income or proceeds of a taxexempt entity attributable to a transaction to various periods, including before and after the listing of the transaction or the date which is 90 days after the date of the enactment of this section. ‘‘(g) COORDINATION WITH OTHER TAXES AND PENALTIES.—The tax imposed by this section is in addition to any other tax, addition to tax, or penalty imposed under this title.’’. (2) CONFORMING AMENDMENT.—The table of subchapters for chapter 42 is amended by adding at the end the following new item: ‘‘SUBCHAPTER F. TAX SHELTER TRANSACTIONS.’’. (b) DISCLOSURE REQUIREMENTS.— (1) DISCLOSURE BY ENTITY TO THE INTERNAL REVENUE SERVICE.— (A) IN GENERAL.—Section 6033(a) (relating to organiza-

26 USC 6033.

tions required to file) is amended by redesignating paragraph (2) as paragraph (3) and by inserting after paragraph (1) the following new paragraph: ‘‘(2) BEING A PARTY TO CERTAIN REPORTABLE TRANSACTIONS.—Every tax-exempt entity described in section 4965(c) shall file (in such form and manner and at such time as determined by the Secretary) a disclosure of— ‘‘(A) such entity’s being a party to any prohibited tax shelter transaction (as defined in section 4965(e)), and ‘‘(B) the identity of any other party to such transaction which is known by such tax-exempt entity.’’. (B) CONFORMING AMENDMENT.—Section 6033(a)(1) is amended by striking ‘‘paragraph (2)’’ and inserting ‘‘paragraph (3)’’. (2) DISCLOSURE BY OTHER TAXPAYERS TO THE TAX-EXEMPT ENTITY.—Section 6011 (relating to general requirement of return, statement, or list) is amended by redesignating subsection (g) as subsection (h) and by inserting after subsection (f) the following new subsection: ‘‘(g) DISCLOSURE OF REPORTABLE TRANSACTION TO TAX-EXEMPT ENTITY.—Any taxable party to a prohibited tax shelter transaction (as defined in section 4965(e)(1)) shall by statement disclose to any tax-exempt entity (as defined in section 4965(c)) which is a party to such transaction that such transaction is such a prohibited tax shelter transaction.’’. (c) PENALTY FOR NONDISCLOSURE.— (1) IN GENERAL.—Section 6652(c) (relating to returns by exempt organizations and by certain trusts) is amended by redesignating paragraphs (3) and (4) as paragraphs (4) and (5), respectively, and by inserting after paragraph (2) the following new paragraph: ‘‘(3) DISCLOSURE UNDER SECTION 6033(a)(2).— ‘‘(A) PENALTY ON ENTITIES.—In the case of a failure to file a disclosure required under section 6033(a)(2), there shall be paid by the tax-exempt entity (the entity manager

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