Page:United States Statutes at Large Volume 96 Part 1.djvu/673

 PUBLIC LAW 97-248—SEPT. 3, 1982 SEC.

96 STAT. 631

338. PENALTY FOR FAILURE TO FURNISH INFORMATION WITH RESPECT TO CERTAIN P OREIGN CORPORATIONS.

(a) IN GENERAL.—Section 6038 (relating to information with respect to certain foreign corporations) is amended by redesignating subsections (b), (c), and (d) as subsections (c), (d), and (e), respectively, and by inserting after subsection (a) the following new subsection:

26 USC 6038.

"(b) DOLLAR PENALTY FOR F A I L U R E TO F U R N I S H INFORMATION. —

"(1) IN GENERAL.—If any person fails to furnish, within the time prescribed under paragraph (2) of subsection (a), any information with respect to any foreign corporation required under paragraph (1) of subsection (a), such person shall pay a penalty of $1,000 for each annual accounting period with respect to which such failure exists. "(2) INCREASE I N PENALTY WHERE FAILURE CONTINUES AFTER

NOTIFICATION.—If any failure described in paragraph (1) continues for more than 90 days after the day on which the Secretary mails notice of such failure to the United States person, such person shall pay a penalty (in addition to the a m o u n t required under paragraph (1)) of $1,000 for each 30-day period (or fraction thereof) during which such failure continues with respect to any annual accounting period after the expiration of such 90-day period. The increase in any penalty under this paragraph shall not exceed $24,000." (b) COORDINATION

WITH

EXISTING

REDUCTION

IN FOREIGN T A X

CREDIT.—Subsection (c) of section 6038 (as redesignated by subsection (a)) is amended— (1) by inserting " and sub.section (b)" after "subsection" in paragraph (3)(B), and (2) by redesignating paragraph (3) as paragraph (4) and by inserting after paragraph (2) the following new paragraph: "(3) COORDINATION WITH SUBSECTION (b).—The a m o u n t of the

reduction which (but for this paragraph) would be made under paragraph (1) with respect to any annual accounting period shall be reduced by the a m o u n t of the penalty imposed by subsection (b) with respect to such period." (c) T E C H N I C A L AMENDMENTS. —

(1) The subsection heading of subsection (c) of section 6038 (as redesignated by subsection (a)) is amended to read as follows: "(c) P E N A L T Y OF R E D U C I N G FOREIGN T A X C R E D I T. — ".

(2) Paragraph (1) of section 6038(a) is amended by striking out "within the m e a n i n g of subsection (d)(1)" and inserting in lieu thereof "within the m e a n i n g of subsection (e)(1)". (3) The last sentence of paragraph (1) of section 6038(c) (as redesignated by subsection (a)) is amended by inserting "of such failure" after "notice". (d) EFFECTIVE DATE.—The amendments made by this section shall apply with respect to information for annual accounting periods ending after the date of the e n a c t m e n t of this Act. SEC. 339. INFORMATION REQUIREMENTS WITH RESPECT TO CERTAIN FOR EIGN-OWNED CORPORATIONS.

(a) GENERAL RULE. — Subpart A of part III of subchapter A of chapter 61 is amended by inserting after section 6038 the following new section:

97-200 O—84—pt. 1

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26 USC 6038 "°*'^-

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