Page:United States Statutes at Large Volume 98 Part 1.djvu/730

 98 STAT. 682

PUBLIC LAW 98-369—JULY 18, 1984 (b) PENALTY FOR FAILURE TO MAINTAIN LIST.—Subchapter B of

chapter 68 (relating to assessable penalties) is amended by adding at the end thereof the following new section:

"': 26 USC 6708. Post, p. 912.

"SEC. 6708. FAILURE TO MAINTAIN LISTS OF INVESTORS IN POTENTIALLY ABUSIVE TAX SHELTERS.

"(a) IN GENERAL.—Any person who fails to meet any requirement imposed by section 6112 shall pay a penalty of $50 for each person with respect to whom there is such a failure, unless it is shown that such failure is due to reasonable cause and not due to willful neglect. The maximum penalty imposed under this subsection for any calendar year shall not exceed $50,000. "(b) PENALTY IN ADDITION TO OTHER PENALTIES.—The penalty imposed by this section shall be in addition to any other penalty provided by law."

Ante, p. 681.

(c) CONFORMING AMENDMENTS.—

(1) The table of sections for subchapter B of chapter 61 is amended by striking out the item relating to section 6112 and inserting in lieu thereof the following new items: "Sec. 6112. Organizers and sellers of potentially abusive tax shelters must keep lists of investors. "Sec. 6113. Cross reference."

(2) The table of sections for subchapter B of chapter 68 is «: XA* amended by adding at the end thereof the following new item:

.. SJ

"Sec. 6708. Failure to maintain lists of investors in potentially abusive tax shelters." (d) EFFECTIVE DATE.—The amendments made by this section shall

26 USC 6112 note.

apply to any interest which is first sold to any investor after August 31, 1984. SEC. 143. INCREASE IN PENALTY FOR PROMOTING ABUSIVE TAX SHELTERS; INJUNCTION AGAINST AIDING OR ABETTING UNDERSTATEMENT OF TAX LIABILITY. (a) INCREASE IN PROMOTER PENALTY.—Subsection (a) of section

26 USC 6700.

6700 (relating to promotion of abusive tax shelters) is amended by striking out "10 percent" and inserting in lieu thereof "20 percent'. (b) INJUNCTION AGAINST AIDING OR ABETTING UNDERSTATEMENTS OF TAX LIABILITY.—

26 USC 7408.

26 USC 6700 note. _

.

26 USC 6621.

n

(1) Subsections (a) and O> of section 7408 (relating to action to t) enjoin promoters of abusive tax shelters, etc.) are each amended by inserting "or section 6701 (relating to penalties for aiding and abetting understatement of tax liability)" after "etc.)". (2) Subsection (a) of section 7408 is amended by inserting "or section 6701" before the period at the end of the second sentence. (3) Subsection (b) of section 7408 is amended by inserting before the period "or section 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. SEC. 144. INCREASED RATE OF INTEREST ON SUBSTANTIAL UNDERPAYMENTS ATTRIBUTABLE TO CERTAIN TAX MOTIVATED TRANSACTIONS. (a) GENERAL RULE.—Section 6621 (relating to determination of rate of interest) is amended by adding at the end thereof the following new subsection:

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