Page:United States Statutes at Large Volume 124.djvu/137

 124 STAT. 111 PUBLIC LAW 111–147—MAR. 18, 2010 (1) in subsection (b), by inserting after paragraph (6) the following new paragraph: ‘‘(7) Any undisclosed foreign financial asset understate- ment.’’, and (2) by adding at the end the following new subsection: ‘‘(j) UNDISCLOSED FOREIGN FINANCIAL ASSET UNDERSTATE- MENT.— ‘‘(1) IN GENERAL.—For purposes of this section, the term ‘undisclosed foreign financial asset understatement’ means, for any taxable year, the portion of the understatement for such taxable year which is attributable to any transaction involving an undisclosed foreign financial asset. ‘‘(2) UNDISCLOSED FOREIGN FINANCIAL ASSET.—For purposes of this subsection, the term ‘undisclosed foreign financial asset’ means, with respect to any taxable year, any asset with respect to which information was required to be provided under section 6038, 6038B, 6038D, 6046A, or 6048 for such taxable year but was not provided by the taxpayer as required under the provisions of those sections. ‘‘(3) INCREASE IN PENALTY FOR UNDISCLOSED FOREIGN FINANCIAL ASSET UNDERSTATEMENTS.—In the case of any por- tion of an underpayment which is attributable to any undis- closed foreign financial asset understatement, subsection (a) shall be applied with respect to such portion by substituting ‘40 percent’ for ‘20 percent’.’’. (b) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after the date of the enact- ment of this Act. SEC. 513. MODIFICATION OF STATUTE OF LIMITATIONS FOR SIGNIFI - CANT OMISSION OF INCOME IN CONNECTION WITH FOR- EIGN ASSETS. (a) EXTENSION OF STATUTE OF LIMITATIONS.— (1) IN GENERAL.—Paragraph (1) of section 6501(e) is amended by redesignating subparagraphs (A) and (B) as sub- paragraphs (B) and (C), respectively, and by inserting before subparagraph (B) (as so redesignated) the following new subparagraph: ‘‘(A) GENERAL RULE.—If the taxpayer omits from gross income an amount properly includible therein and— ‘‘(i) such amount is in excess of 25 percent of the amount of gross income stated in the return, or ‘‘(ii) such amount— ‘‘(I) is attributable to one or more assets with respect to which information is required to be reported under section 6038D (or would be so required if such section were applied without regard to the dollar threshold specified in sub- section (a) thereof and without regard to any excep- tions provided pursuant to subsection (h)(1) thereof), and ‘‘(II) is in excess of $5,000, the tax may be assessed, or a proceeding in court for collection of such tax may be begun without assessment, at any time within 6 years after the return was filed.’’. (2) CONFORMING AMENDMENTS.— Time period. 26 USC 6501. Applicability. 26 USC 6662 note.