INCREASE IN PENALTIES ON EXEMPT ORGANIZATIONS FOR FAILURE TO FILE COMPLETE AND TIMELY ANNUAL RETURNS.

Sec. 1314. INCREASE IN PENALTIES ON EXEMPT ORGANIZATIONS FOR FAILURE TO FILE COMPLETE AND TIMELY ANNUAL RETURNS. (a) In general.— Subparagraph (A) of section 6652(c)(1) (relating to annual returns under section 6033) is amended by striking “$10” and inserting “$20” and by striking “$5,000” and inserting “$10,000”. (b) Larger Penalty on Organizations Having Gross Receipts in Excess of $1,000,000.— Subparagraph (A) of section 6652(c)(1) is amended by adding at the end the following new sentence: “In the case of an organization having gross receipts exceeding $1,000,000 for any year, with respect to the return required under section 6033 for such year, the first sentence of this subparagraph shall be applied by substituting ‘$100’ for ‘$20’ and, in lieu of applying the second sentence of this subparagraph, the maximum penalty under this subparagraph shall not exceed $50,000.”. 110 STAT. 1481 (c) Effective Date.— The amendments made by this section 26 use 6652 shall apply to returns for taxable years ending on or after the note. date of the enactment of this Act.