[Congressional Record Volume 171, Number 112 (Saturday, June 28, 2025)]
[Senate]
[Page S3975]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 2404. Ms. CORTEZ MASTO submitted an amendment intended to be 
proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to 
the bill H.R. 1, to provide for reconciliation pursuant to title II of 
H. Con. Res. 14; which was ordered to lie on the table; as follows:

       Strike subsection (g) of section 70606 and insert the 
     following:
       (g) Effective Dates.--
       (1) In general.--The provisions of this section shall apply 
     to aid, assistance, and advice provided after July 1, 2021.
       (2) Limitation on credits and refunds.--Subsection (d) 
     shall apply to credits and refunds allowed or made after the 
     date of the enactment of this Act.
       (3) Extension of limitation on assessment.--The amendment 
     made by subsection (e) shall apply to assessments made after 
     the date of the enactment of this Act.
       (4) Amendment to penalty for erroneous claim for refund or 
     credit.--The amendment made by subsection (f) shall apply to 
     claims for credit or refund after the date of the enactment 
     of this Act.
       (h) Increase in Assessable Penalty on Covid-ertc Promoters 
     for Aiding and Abetting Understatements of Tax Liability.--
       (1) In general.--If any COVID-ERTC promoter is subject to 
     penalty under section 6701(a) of the Internal Revenue Code of 
     1986 with respect to any COVID-ERTC document, notwithstanding 
     paragraphs (1) and (2) of section 6701(b) of such Code, the 
     amount of the penalty imposed under such section 6701(a) 
     shall be the greater of--
       (A) $200,000 ($10,000, in the case of a natural person), or
       (B) 75 percent of the gross income derived (or to be 
     derived) by such promoter with respect to the aid, 
     assistance, or advice referred to in section 6701(a)(1) of 
     such Code with respect to such document.
       (2) No inference.--Paragraph (1) shall not be construed to 
     create any inference with respect to the proper application 
     of the knowledge requirement of section 6701(a)(3) of the 
     Internal Revenue Code of 1986.
       (i) Failure to Comply With Due Diligence Requirements 
     Treated as Knowledge for Purposes of Assessable Penalty for 
     Aiding and Abetting Understatement of Tax Liability.--In the 
     case of any COVID-ERTC promoter, the knowledge requirement of 
     section 6701(a)(3) of the Internal Revenue Code of 1986 shall 
     be treated as satisfied with respect to any COVID-ERTC 
     document with respect to which such promoter provided aid, 
     assistance, or advice, if such promoter fails to comply with 
     the due diligence requirements referred to in subsection 
     (c)(1).
       (j) Assessable Penalties for Failure to Disclose 
     Information, Maintain Client Lists, etc.--For purposes of 
     sections 6111, 6112, 6707 and 6708 of the Internal Revenue 
     Code of 1986--
       (1) any COVID-related employee retention tax credit 
     (whether or not the taxpayer claims such COVID-related 
     employee retention tax credit) shall be treated as a listed 
     transaction (and as a reportable transaction) with respect to 
     any COVID-ERTC promoter if such promoter provides any aid, 
     assistance, or advice with respect to any COVID-ERTC document 
     relating to such COVID-related employee retention tax credit, 
     and
       (2) such COVID-ERTC promoter shall be treated as a material 
     advisor with respect to such transaction.
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