Page:United States Statutes at Large Volume 124.djvu/141

 124 STAT. 115 PUBLIC LAW 111–147—MAR. 18, 2010 prescribe with respect to such trust for such year and’’ before ‘‘shall be responsible to ensure’’. (b) EFFECTIVE DATE.—The amendment made by this section shall apply to taxable years beginning after the date of the enact- ment of this Act. SEC. 535. MINIMUM PENALTY WITH RESPECT TO FAILURE TO REPORT ON CERTAIN FOREIGN TRUSTS. (a) IN GENERAL.—Subsection (a) of section 6677 is amended— (1) by inserting ‘‘the greater of $10,000 or’’ before ‘‘35 percent’’, and (2) by striking the last sentence and inserting the following: ‘‘At such time as the gross reportable amount with respect to any failure can be determined by the Secretary, any subse- quent penalty imposed under this subsection with respect to such failure shall be reduced as necessary to assure that the aggregate amount of such penalties do not exceed the gross reportable amount (and to the extent that such aggregate amount already exceeds the gross reportable amount the Sec- retary shall refund such excess to the taxpayer).’’ (b) EFFECTIVE DATE.—The amendments made by this section shall apply to notices and returns required to be filed after December 31, 2009. PART V—SUBSTITUTE DIVIDENDS AND DIVI- DEND EQUIVALENT PAYMENTS RECEIVED BY FOREIGN PERSONS TREATED AS DIVI- DENDS SEC. 541. SUBSTITUTE DIVIDENDS AND DIVIDEND EQUIVALENT PAY- MENTS RECEIVED BY FOREIGN PERSONS TREATED AS DIVIDENDS. (a) IN GENERAL.—Section 871 is amended by redesignating subsection (l) as subsection (m) and by inserting after subsection (k) the following new subsection: ‘‘(l) TREATMENT OF DIVIDEND EQUIVALENT PAYMENTS.— ‘‘(1) IN GENERAL.—For purposes of subsection (a), sections 881 and 4948(a), and chapters 3 and 4, a dividend equivalent shall be treated as a dividend from sources within the United States. ‘‘(2) DIVIDEND EQUIVALENT.—For purposes of this sub- section, the term ‘dividend equivalent’ means— ‘‘(A) any substitute dividend made pursuant to a securi- ties lending or a sale-repurchase transaction that (directly or indirectly) is contingent upon, or determined by reference to, the payment of a dividend from sources within the United States, ‘‘(B) any payment made pursuant to a specified notional principal contract that (directly or indirectly) is contingent upon, or determined by reference to, the payment of a dividend from sources within the United States, and ‘‘(C) any other payment determined by the Secretary to be substantially similar to a payment described in subparagraph (A) or (B). Definitions. Applicability. 26 USC 6677 note. 26 USC 6677. Applicability. 26 USC 6048 note.