[Congressional Record Volume 156, Number 20 (Tuesday, February 9, 2010)]
[Senate]
[Pages S541-S542]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SMALL BUSINESS PENALTY FAIRNESS ACT OF 2009
Mr. REID. Mr. President, I ask unanimous consent that the Senate
Finance Committee be discharged from further consideration of S. 2917
and that the Senate then proceed to its consideration.
The PRESIDING OFFICER. Without objection, it is so ordered. The clerk
will report the bill by title. The legislative clerk read as follows:
A bill (S. 2917) to amend the Internal Revenue Code of 1986
to modify the penalty for failure to disclose certain
reportable transactions and the penalty for submitting a bad
check to the Internal Revenue Service, to modify certain
rules relating to Federal vendors, and for other purposes.
There being no objection, the Senate proceeded to consider the bill.
Mr. REID. I ask unanimous consent that the bill be read three times,
passed, the motion to reconsider be laid upon the table, and that any
statements relating to this matter be printed in the Record.
[[Page S542]]
The PRESIDING OFFICER. Without objection, it is so ordered.
The bill (S. 2917) was ordered to be engrossed for a third reading,
was read the third time, and passed, as follows:
S. 2917
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Small Business Penalty
Fairness Act of 2009''.
SEC. 2. LIMITATION ON PENALTY FOR FAILURE TO DISCLOSE
REPORTABLE TRANSACTIONS BASED ON RESULTING TAX
BENEFITS.
(a) In General.--Subsection (b) of section 6707A of the
Internal Revenue Code of 1986 is amended to read as follows:
``(b) Amount of Penalty.--
``(1) In general.--Except as otherwise provided in this
subsection, the amount of the penalty under subsection (a)
with respect to any reportable transaction shall be 75
percent of the decrease in tax shown on the return as a
result of such transaction (or which would have resulted from
such transaction if such transaction were respected for
Federal tax purposes).
``(2) Maximum penalty.--The amount of the penalty under
subsection (a) with respect to any reportable transaction
shall not exceed--
``(A) in the case of a listed transaction, $200,000
($100,000 in the case of a natural person), or
``(B) in the case of any other reportable transaction,
$50,000 ($10,000 in the case of a natural person).
``(3) Minimum penalty.--The amount of the penalty under
subsection (a) with respect to any transaction shall not be
less than $10,000 ($5,000 in the case of a natural
person).''.
(b) Effective Date.--The amendment made by this section
shall apply to penalties assessed after December 31, 2006.
SEC. 3. REPORT ON TAX SHELTER PENALTIES AND CERTAIN OTHER
ENFORCEMENT ACTIONS.
(a) In General.--The Commissioner of Internal Revenue, in
consultation with the Secretary of the Treasury, shall submit
to the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate an
annual report on the penalties assessed by the Internal
Revenue Service during the preceding year under each of the
following provisions of the Internal Revenue Code of 1986:
(1) Section 6662A (relating to accuracy-related penalty on
understatements with respect to reportable transactions).
(2) Section 6700(a) (relating to promoting abusive tax
shelters).
(3) Section 6707 (relating to failure to furnish
information regarding reportable transactions).
(4) Section 6707A (relating to failure to include
reportable transaction information with return).
(5) Section 6708 (relating to failure to maintain lists of
advisees with respect to reportable transactions).
(b) Additional Information.--The report required under
subsection (a) shall also include information on the
following with respect to each year:
(1) Any action taken under section 330(b) of title 31,
United States Code, with respect to any reportable
transaction (as defined in section 6707A(c) of the Internal
Revenue Code of 1986).
(2) Any extension of the time for assessment of tax
enforced, or assessment of any amount under such an
extension, under paragraph (10) of section 6501(c) of the
Internal Revenue Code of 1986.
(c) Date of Report.--The first report required under
subsection (a) shall be submitted not later than June 1,
2010.
SEC. 4. APPLICATION OF BAD CHECKS PENALTY TO ELECTRONIC
PAYMENTS.
(a) In General.--Section 6657 of the Internal Revenue Code
of 1986 is amended--
(1) by striking ``If any check or money order in payment of
any amount'' and inserting ``If any instrument in payment, by
any commercially acceptable means, of any amount'', and
(2) by striking ``such check'' each place it appears and
inserting ``such instrument''.
(b) Effective Dates.--The amendments made by this section
shall apply to instruments tendered after the date of the
enactment of this Act.
SEC. 5. APPLICATION OF LEVY TO PAYMENTS TO FEDERAL VENDORS
RELATING TO PROPERTY.
(a) In General.--Section 6331(h)(3) of the Internal Revenue
Code of 1986 is amended by striking ``goods or services'' and
inserting ``property, goods, or services''.
(b) Effective Date.--The amendment made by this section
shall apply to levies approved after the date of the
enactment of this Act.
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