PRELIMINARY NOTICE REQUIREMENT.

Sec. 901. PRELIMINARY NOTICE REQUIREMENT. (a) In general.— Section 6672 (relating to failure to collect and pay over tax, or attempt to evade or defeat tax) is amended by redesignating subsection (b) as subsection (c) and by inserting after subsection (a) the following new subsection: “(b) Preliminary Notice Requirement.— “(1) In general.— No penalty shall be imposed under subsection (a) unless the Secretary notifies the taxpayer in writing by mail to an address as determined under section 6212(b) that the taxpayer shall be subject to an assessment of such penalty. “(2) Timing of Notice.— The mailing of the notice described in paragraph (1) shall precede any notice and demand of any penalty under subsection (a) by at least 60 days. “(3) Statute of Limitations.— If a notice described in paragraph (1) with respect to any penalty is mailed before the expiration of the period provided by section 6501 for the assessment of such penalty (determined without regard to this paragraph), the period provided by such section for the assessment of such penalty shall not expire before the later of— 110 STAT. 1466 “(A) the date 90 days after the date on which such notice was mailed, or “(B) if there is a timely protest of the proposed assessment, the date 30 days after the Secretary makes a final administrative determination with respect to such protest. “(4) Exception for Jeopardy.— This subsection shall not apply if the Secretary finds that the collection of the penalty is in jeopardy.”. (b) Effective Date.— The amendment made by subsection (a) shall apply to proposed assessments made after June 30, 1996.