102 STAT. 3618 >
PUBLIC LAW 100-647—NOV. 10, 1988 on failures on any day during the noncompliance period with respect to a qualified beneficiary shall be $100. "(B) SPECIAL RULE WHERE MORE THAN i QUALIFIED BENE-
FICIARY.—If there is more than 1 qualified beneficiary with respect to the same qualifying event, the maximum amount of tax imposed by subsection (a) on all failures on any day during the noncompliance period with respect to such qualified beneficiaries shall be $200. "(4) OVERALL LIMITATION FOR UNINTENTIONAL FAILURES.—In
the case of failures which are due to reasonable cause and not to willful neglect— "(A) SINGLE EMPLOYER PLANS.—
"(i) IN GENERAL.—In the case of failures with respect to plans other than multiemployer plans, the tax imposed by subsection (a) for failures during the taxable year of the employer shall not exceed the amount equal to the lesser of^ "(I) 10 percent of the aggregate amount paid or incurred by the employer (or predecessor employer) during the preceding taxable year for group health plans, or "(II) $500,000. "(ii) TAXABLE YEARS IN THE CASE OF CERTAIN CONTROLLED GROUPS.—For purposes of this subparagraph, if
not all persons who are treated as a single employer for purposes of this section have the same taxable year, the taxable years taken into account shall be determined under principles similar to the principles of section 1561. "(B) MULTIEMPLOYER PLANS.—
"(i) IN GENERAL.—In the case of fgdlures with respect to a multiemployer plan, the tax imposed by subsection (a) for failures during the taxable year of the trust forming part of such plan shall not exceed the amount equal to the lesser of— "(I) 10 percent of the amount paid or incurred by such trust during such taxable year to provide medical care (as defined in section 213(d)) directly or through insurance, reimbursement, or otherwise, or "(II) $500,000. For purposes of the preceding sentence, all plans of which the same trust forms a part shall be treated as 1 plan. "(ii) SPECIAL RULE FOR EMPLOYERS REQUIRED TO PAY
TAX.—If an employer is assessed a tax imposed by subsection (a) by reason of a failure with respect to a multiemployer plan, the limit shall be determined under subparagraph (A) (and not under this subparagraph) and as if such plan were not a multiemployer plan. "(C) SPECIAL RULE FOR PERSONS PROVIDING BENEFITS.—In
the case of a person described in subsection (e)(l)(B) (and not subsection (e)(l)(A)), the aggregate amount of tax imposed by subsection (a) for failures during a taxable year with respect to all plans shall not exceed $2,000,000.
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