Page:United States Statutes at Large Volume 96 Part 1.djvu/658

 96 STAT. 616

PUBLIC LAW 97-248—SEPT. 3, 1982 "(B) knowing of, and not attempting to prevent, participation by a subordinate in an act. "(2) SUBORDINATE.—For purposes of paragraph (1), the term 'subordinate' means any other person (whether or not a director, officer, employee, or agent of the taxpayer involved) over whose activities the person has direction, supervision, or control. "(d) TAXPAYER NOT REQUIRED TO HAVE KNOWLEDGE.—Subsection

(a) shall apply whether or not the understatement is with the knowledge or consent of the persons authorized or required to present the return, affidavit, claim, or other document. "(e) CERTAIN ACTIONS NOT TREATED AS AID OR ASSISTANCE.—For

purposes of subsection (a)(1), a person furnishing typing, reproducing, or other mechanical assistance with respect to a document shall not be treated as having aided or assisted in the preparation of such document by reason of such assistance. "(f) PENALTY IN ADDITION TO OTHER PENALTIES.—

"(1) IN GENERAL.—Except as provided by paragraph (2), the penalty imposed by this section shall be in addition to any other penalty provided by law. "(2) COORDINATION WITH RETURN PREPARER PENALTIES.—No

penalty shall be assessed under subsection (a) or (b) of section 6694 on any person with respect to any document for which a penalty is assessed on such person under subsection (a)." (b) CLERICAL AMENDMENT.—The table of sections for subchapter B of chapter 68 is amended by inserting after the item relating to section 6700 the following new item: "Sec. 6701. Penalties for aiding and abetting understatement of tax liability."

26 USC 6701 ^°^^-

(c) EFFECTIVE DATE.—The amendments made by this section shall take effect on the day after the date of the enactment of this Act. (d) CROSS REFERENCE.— For provisions relating to burden of proof and prepayment forum, see section 6703 of the Internal Revenue Code of 1954, as added by section 333 of this Act. SEC. 325. FRAUD PENALTY.

26 USC 6653.

(a) GENERAL RULE.—Subsection (b) of section 6653 (relating to fraud penalty) is amended to read as follows: "(b) FRAUD.—

"(1) IN GENERAL.—If any part of any underpayment (as defined in subsection (c)) of tax required to be shown on a return is due to fraud, there shall be added to the tax an amount equal to 50 percent of the underpayment. "(2)

ADDITIONAL

AMOUNT

FOR PORTION

ATTRIBUTABLE TO

FRAUD.—There shall be added to the tax (in addition to the amount determined under paragraph (1)) an amount equal to 50 percent of the interest payable under section 6601— "(A) with respect to the portion of the underpayment described in paragraph (1) which is attributable to fraud, and "(B) for the period beginning on the last day prescribed by law for payment of such underpayment (determined without regard to any extension) and ending on the date of the assessment of the tax (or, if earlier, the date of the payment of the tax).

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