Page:United States Statutes at Large Volume 90 Part 2.djvu/222

 90 STAT. 1690

PUBLIC LAW 94-455—OCT. 4, 1976 section 6502 on the collection by levy or by a proceeding i n court in respect of any penalty described i n paragraph (1) shall be suspended for the period during which the Secretary is prohibited from collecting by levy o r a proceeding i n court. "(d)

ABATEMENT o r P E N A L T Y W H E R E TAXPAYER'S LIABILITY N O T

UNDERSTATED.—If at any time there is a final administrative determination or a final judicial decision that there was no understatement of liability i n the case of any r e t u r n o r claim for refund w i t h respect to which a penalty under subsection (a) o r (b) has been assessed, such assessment shall be abated, and if any portion of such penalty has been paid the amount so paid shall be refunded to the person who made such payment as a n overpayment of tax without r e g a r d to any period of limitations which, b u t for t h i s subsection, would a p p l y to the making of such refund. " (e) UNDERSTATEMENT OF LIABILITY D E F I N E D. — For purposes of t h i s

26 USC 1. J

section, the term 'understatement of liability' means any understatement of the n e t amount payable with respect to any tax imposed by subtitle A or any overstatement of the net amount creditable or refundable with respect to any such tax. Except as otherwise provided in subsection (d), the determination of whether or not there is a n understatement of liability shall be made without r e g a r d to any administrative or judicial action involving the taxpayer. " (f) CROSS R E F E R E N C E. —

"For definition of income tax return preparer, see section 7701 (a)(36)."

Ante, p. 1688.

(2) BURDEN OF PROOF UNDER 0694(b).—

26 USC 7428. 26 USC 7427.

Ante, p. 1689.

(A) Subchapter B of chapter 76 (relating to proceedings by taxpayers and t h i r d parties) is amended by redesignating section 7427 as section 7428 and by inserting after section 7426 the following new section: "SEC. 7427. INCOME TAX RETURN PREPARERS. " I n any proceeding involving the issue of whether or not an income tax return preparer has willfully attempted in any manner to understate the liability for tax (within the meaning of section 6 6 9 4 (b)), the burden of proof in respect to such issue shall be upon the Secretary." (B) The table of sections for such subchapter B is amended by striking out the last item and inserting in lieu thereof the following: "Sec. 7427. Income tax return preparers. "Sec. 7428. Cross references." (c) PREI'ARER M U S T FUTINISH C O P Y OF R E T U R N TO TAXPAYER AND M U S T R E T A I N COPY OR L I S T. — Subchapter B of chapter 61 ( r e l a t i n g

26 USC 6107

to information and returns) is amended by inserting after section 6106 the following new section: "SEC. 6107. INCOME TAX RETURN PREPARER MUST FURNISH COPY OF RETURN TO TAXPAYER AND MUST RETAIN A COPY OR LIST. "(a)

FuKxisiiiNG COPY TO TAXPAYER.—Any

person

who is an

income tax return p i e p a r e r with respect to any return or claim for refund shall furnish a completed copy of such r e t u r n or claim to the taxpayer not later than the time such return or claim is presented for such taxpayer's signature. "(b)

COPY OR L I S T To B E RETAINED BY I N C O M E T A X RETURN

PREPARER.—Any person w h o is an income tax r e t u r n preparer with

�