PENALTY FOR FAILING TO DISCLOSE REPORTABLE TRANSACTIONS.

SEC. 811. PENALTY FOR FAILING TO DISCLOSE REPORTABLE TRANSACTIONS.(a) In General.—Part I of subchapter B of chapter 68 (relating to assessable penalties) is amended by inserting after section 6707 the following new section:“SEC. 6707A. PENALTY FOR FAILURE TO INCLUDE REPORTABLE TRANSACTION INFORMATION WITH RETURN.“(a) Imposition of Penalty.—Any person who fails to include on any return or statement any information with respect to a reportable transaction which is required under section 6011 to be included with such return or statement shall pay a penalty in the amount determined under subsection (b).“(b) Amount of Penalty.—“(1) In general.—Except as provided in paragraph (2), the amount of the penalty under subsection (a) shall be—“(A) $10,000 in the case of a natural person, and“(B) $50,000 in any other case.“(2) Listed transaction.—The amount of the penalty under subsection (a) with respect to a listed transaction shall be—“(A) $100,000 in the case of a natural person, and“(B) $200,000 in any other case.“(c) Definitions.—For purposes of this section:“(1) Reportable transaction.—The term ‘reportable transaction’ means any transaction with respect to which information is required to be included with a return or statement because, as determined under regulations prescribed under section 6011, such transaction is of a type which the 118 STAT. 1576 Secretary determines as having a potential for tax avoidance or evasion. “(2) Listed transaction.—The term ‘listed transaction’ means a reportable transaction which is the same as, or substantially similar to, a transaction specifically identified by the Secretary as a tax avoidance transaction for purposes of section 6011.“(d) Authority To Rescind Penalty.—“(1) In general.—The Commissioner of Internal Revenue may rescind all or any portion of any penalty imposed by this section with respect to any violation if—“(A) the violation is with respect to a reportable transaction other than a listed transaction, and“(B) rescinding the penalty would promote compliance with the requirements of this title and effective tax administration.“(2) No judicial appeal.—Notwithstanding any other provision of law, any determination under this subsection may not be reviewed in any judicial proceeding.“(3) Records.—If a penalty is rescinded under paragraph (1), the Commissioner shall place in the file in the Office of the Commissioner the opinion of the Commissioner with respect to the determination, including—“(A) a statement of the facts and circumstances relating to the violation,“(B) the reasons for the rescission, and“(C) the amount of the penalty rescinded.“(e) Penalty Reported to SEC.—In the case of a person—“(1) which is required to file periodic reports under section 13 or 15(d) of the Securities Exchange Act of 1934 or is required to be consolidated with another person for purposes of such reports, and“(2) which—“(A) is required to pay a penalty under this section with respect to a listed transaction,“(B) is required to pay a penalty under section 6662A with respect to any reportable transaction at a rate prescribed under section 6662A(c), or“(C) is required to pay a penalty under section 6662(h) with respect to any reportable transaction and would (but for section 6662A(e)(2)(C)) have been subject to penalty under section 6662A at a rate prescribed under section 6662A(c), the requirement to pay such penalty shall be disclosed in such reports filed by such person for such periods as the Secretary shall specify. Failure to make a disclosure in accordance with the preceding sentence shall be treated as a failure to which the penalty under subsection (b)(2) applies.“(f) Coordination With Other Penalties.—The penalty imposed by this section shall be in addition to any other penalty imposed by this title.”.118 STAT. 1577(b) Conforming Amendment.—The table of sections for part I of subchapter B of chapter 68 is amended by inserting after the item relating to section 6707 the following: “Sec. 6707A. Penalty for failure to include reportable transaction information with return.”. (c) Effective Date.—The amendments made by this section shall apply to returns and statements the due date for which is after the date of the enactment of this Act.(d) Report.—The Commissioner of Internal Revenue shall annually report to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate—(1) a summary of the total number and aggregate amount of penalties imposed, and rescinded, under section 6707A of the Internal Revenue Code of 1986, and(2) a description of each penalty rescinded under section 6707(c) of such Code and the reasons therefor.