REASONABLE CAUSE EXCEPTION FOR CERTAIN PENALTIES.

SEC. 1281. REASONABLE CAUSE EXCEPTION FOR CERTAIN PENALTIES. (a) Information on Deductible Employee Contributions.—Subsection (g) of section 6652 (relating to information required in connection with deductible employee contributions) is amended by adding at the end the following new sentence: “No penalty shall be imposed under this subsection on any failure which is shown to be due to reasonable cause and not willful neglect.”. (b) Reports on Status as Qualified Small Business.—Subsection (k) of section 6652 (relating to failure to make reports required under section 1202) is amended by adding at the end the following new sentence: “No penalty shall be imposed under this subsection on any failure which is shown to be due to reasonable cause and not willful neglect.”. (c) Returns of Personal Holding Company Tax by Foreign Corporations.—Section 6683 (relating to failure of foreign corporation to file return of personal holding company tax) is amended by adding at the encl the following new sentence: “No penalty shall be imposed under this section on any failure which is shown to be due to reasonable cause and not willful neglect.”. (d) Failure To Make Required Payments.—Subparagraph (A) of section 7519(f)(4) is amended by adding at the end the following new sentence: “No penalty shall be imposed under this subparagraph on any failure which is shown to be due to reasonable cause and not willful neglect.”. (e) Effective Date.—The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.