Page:United States Statutes at Large Volume 85.djvu/52

 22

PUBLIC LAW 92-9-APR. 1, 1971

[85 STAT.

"(2) CLASSIFICATIONS.—For purposes of paragraph (1), debt obligations may be classified according to—' " (A) type of debt obligation, " (B) period of maturity, " (C) category of obligee, " (D) category of obligor, " (E) aggregate amounts subject to tax or not subject to tax, or " (F) other criteria similar to any of the foregoing. " (b) RATES OF TAX.—The rates of tax which may be specified in an

9fi n^r iQ^^• note.

Executive order issued under this section shall not exceed the rate applicable to debt obligations having a period remaining to maturity of at least 1 year, but less than 1^4 years. "(c) APPLICABILITY OF EXECUTIVE ORDER.—Any Executive order issued under this section shall apply with respect to acquisitions made after the date on which such Executive order is issued, except that in the case of any such order which subjects acquisitions to the tax which are not then subject to the tax, or which increases a rate of tax (as in effect without regard to such order), to the extent specified in such order, rules similar to the rules prescribed in paragraphs (2), (3), and (4) of section 3(c) of the Interest Equalization Tax Extension Act of 1967 shall apply. (ci) KEGULATIONS.—llie Secretary or his delegate may prescribe such regulations (not inconsistent with the provisions of this section or any Executive order issued and in effect under this section) as may be necessary to carry out the provisions of this section." (2) The table of sections for subchapter A of chapter 41 is amended by adding at the end thereof the following new item: "Sec. 4921. Debt obligations with maturity of less than a year." (j) PENALTY FOR FAILURE To F I L E QUARTERLY RETURN OR R E M I T TAX.—

83 Stat. 727.

81 Stat. 148.

83 Stat. 268.

^ ^ Section 6651 is amended by adding at the end thereof the following new subsection: "(e) CERTAIN INTEREST EQUALIZATION TAX RETURNS.—The provisions of this section shall apply with respect to returns of amounts withheld under section 4918(e)(7) (relating to withholding of interest equalization tax by participating firms) in the same manner and to the same extent as they apply with respect to returns specified in subsection (a)(1)." (£) Section 6680 is amended— (A) by inserting " (a) IN GENERAL.—" immediately before " I n addition"; and (B) by adding at the end thereof the following new subsection: "(b)

CROSS R E F E R E N C E. — 'Tor additions and penalties in case of failure to file interest equalization tax returns or pay or remit, see section 665L"

Effective date.

^3^ 'pj^g amendments made by this subsection shall apply with respect to returns required to be filed on or after the date of the enactment of this Act. (k) ELIMINATION OF KNOWLEDGE REQUIREMENT REGARDING FILING OF FALSE INTEREST EQUALIZATION T A X CERTIFICATES.—

81 Stat. 155, 176.

(1) Section 6681(a) is amended— (A) by striking out "knowingly"; and (B) by striking out "shall be liable" and inserting in lieu thereof "shall, unless it is shown that such action is due to reasonable cause and not due to willful neglect, be liable".

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