INCREASE IN PENALTY FOR FRAUDULENT FAILURE TO FILE.

SEC. 7741. INCREASE IN PENALTY FOR FRAUDULENT FAILURE TO FILE. (a) General Rule.—Section 6651 (relating to failure to file tax return or pay tax) is amended by adding at the end thereof the following new subsection: “(f) Increase in Penalty for Fraudulent Failure to File.—If any failure to file any return is fraudulent, paragraph (1) of subsection (a) shall be applied— 103 STAT. 2405 “(1) by substituting ‘15 percent’ for ‘5 percent’ each place it appears, and “(2) by substituting ‘75 percent’ for ‘25 percent’.” (b) Effective Date.—The amendment made by subsection (a) shall apply in the case of failures to file returns the due date for which (determined without regard to extensions) is after December 31, 1989.