Page:United States Statutes at Large Volume 95.djvu/367

 PUBLIC LAW 97-34—AUG. 13, 1981

95 STAT. 341

"SEC. 6682. FALSE INFORMATION WITH RESPECT TO WITHHOLDING. "(a) CIVIL PENALTY.—In addition to any criminal penalty provided

by law, if— "(1) any individual makes a statement under section 3402 which results in a decrease in the amounts deducted and withheld under chapter 24, and 26 USC 340i et {2) as of the time such statement was made, there was no ««9 reasonable basis for such statement, such individual shall pay a penalty of $500 for such statement. "(b) EXCEPTION.—The Secretary may waive (in whole or in part) the penalty imposed under subsection (a) if the taxes imposed with respect to the individual under subtitle A for the taxable year are equal to or less than the sum of— "(1) the credits against such taxes allowed by part IV of subchapter A of chapter 1, and 26 USC 31. "(2) the payments of estimated tax which are considered payments on account of such taxes. "(c) DEFICIENCY PROCEDURES NOT TO APPLY.—Subchapter B of

chapter 63 (relating to deficiency procedures for income, estate, gift, 26 USC 62ii. and certain excise taxes) shall not apply in respect to the assessment or collection of any penalty imposed by subsection (a)." (b) CRIMINAL PENALTY.—Section 7205 (relating to fraudulent with- 26 USC 7205. holding exemption certificate or failure to supply information) is amended by striking out "$500" and inserting in lieu thereof "$1,000". (c) CLERICAL AMENDMENT.—The table of sections for subchapter B of chapter 68 is amended by striking out the item relating to section 6682 and inserting in lieu thereof the following: "Sec. 6682. False information with respect to withholding." (d) EFFECTIVE DATE.—The amendments made by this section shall 26 USC 6682

apply to acts and failures to act after December 31, 1981. ^°^SEC. 722. ADDITIONS TO TAX IN THE CASE OF VALUATION OVERSTATEMENTS, INCREASE IN NEGLIGENCE PENALTY. (a) VALUATION OVERSTATEMENTS.—

(1) IN GENERAL.—Subchapter A of chapter 68 (relating to additions to tax) is amended by redesignating section 6659 as section 6660 and by inserting after section 6658 the following new 26 USC 6660. section: "SEC. 6659. ADDITION TO TAX IN THE CASE OF VALUATION OVERSTATE- 26 USC 6659. MENTS FOR PURPOSES OF THE INCOME TAX. "(a) ADDITION TO THE TAX.—If—

"(1) an individual, or "(2) a closely held corporation or a personal service corporation, has an underpa3mient of the tax imposed by chapter 1 for the taxable year which is attributable to a valuation overstatement, then there shall be added to the tax an amount equal to the applicable percentage of the underpayment so attributable. "(b) APPLICABLE PERCENTAGE DEFINED.—For purposes of subsection (a), the applicable percentage shall be determined under the following table: "If the valuation claimed is the following percent of the correct valuation— 150 percent or more but not more than 200 percent More than 200 percent but not more than 250 percent More than 250 percent

The applicable percentage is: 10 20 30

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