PROCEDURE AND ADMINISTRATION.

SEC. 504. PROCEDURE AND ADMINISTRATION. (a) Returns—Section 6011 (relating to general requirement of return, statement, or list) is amended by redesignating subsection (e) as subsection (f) and by adding a new subsection (e) which reads as follows: “(e) Returns, Etc., of DISCS and Former DISCS— “(1) Records and information—A DISC or former DISC shall for the taxable year— “(A) furnish such information to persons who were shareholders at any time during such taxable year, and to the Secretary or his delegate, and 85 Stat. 551 “(B) keep such records, as may be required by regulations prescribed by the Secretary or his delegate. “(2) Returns—A DISC shall file for the taxable year such returns as may be prescribed by the Secretary or his delegate by forms or regulations.” (b) Returns of Corporations—Section 6072(b) (relating to returns of corporations) is amended by adding at the end thereof the following: “Returns required for a taxable year by section 6011(e) (2) (relating to returns of a DISC) shall be filed on or before the fifteenth day of the ninth month following the close of the taxable year.” (c) Certain Income Tax Returns of DISC.—Section 6501(g) (relating to certain income tax returns of corporations) is amended by adding at the end thereof the following new paragraph: “(3) DISC.—If a corporation determines in good faith that it is a DISC (as defined in section 992(a)) and files a return as such under section 6011(e)(2) and if such corporation is there-after held to be a corporation which is not a DISC for the tax-able year for which the return is filed, such return shall lie deemed the return of a corporation which is not a DISC for purposes of this section.” (d) Failure of DISC To File Returns—Subchapter B of chapter 68 (relating to assessable penalties) is amended by adding at the end thereof the following new section: “SEC. 6686. FAILURE OF DISC TO FILE RETURNS.“In addition to the penalty imposed by section 7203 (relating to willful failure to file return, supply information, or pay tax) any person required to supply information or to file a return under section 6011 (e) who fails to supply such information or file such return at the time prescribed by the Secretary or his delegate, or who files a return which does not show the information required, shall pay a penalty of $100 for each failure to supply information (but the total amount imposed on the delinquent person for all such failures during any calendar year shall not exceed $25,000) or a penalty of $1,000 for each failure to file a return, unless it is shown that such failure is due to reasonable cause.”