118 STAT. 1583 PUBLIC LAW 108–357—OCT. 22, 2004 (4) The item relating to section 6112 in the table of sections for subchapter B of chapter 61 is amended to read as follows: ‘‘Sec. 6112. Material advisors of reportable transactions must keep lists of advisees, etc.’’. (5)(A) The heading for section 6708 is amended to read as follows: ‘‘SEC. 6708. FAILURE TO MAINTAIN LISTS OF ADVISEES WITH RESPECT TO REPORTABLE TRANSACTIONS.’’ (B) The item relating to section 6708 in the table of sections for part I of subchapter B of chapter 68 is amended to read as follows: ‘‘Sec. 6708. Failure to maintain lists of advisees with respect to reportable transactions.’’. (c) EFFECTIVE DATE.—The amendments made by this section shall apply to transactions with respect to which material aid, assistance, or advice referred to in section 6111(b)(1)(A)(i) of the Internal Revenue Code of 1986 (as added by this section) is provided after the date of the enactment of this Act. SEC. 816. FAILURE TO FURNISH INFORMATION REGARDING REPORT ABLE TRANSACTIONS. (a) IN GENERAL.—Section 6707 (relating to failure to furnish information regarding tax shelters) is amended to read as follows: ‘‘SEC. 6707. FAILURE TO FURNISH INFORMATION REGARDING REPORT ABLE TRANSACTIONS. ‘‘(a) IN GENERAL.—If a person who is required to file a return under section 6111(a) with respect to any reportable transaction— ‘‘(1) fails to file such return on or before the date prescribed therefor, or ‘‘(2) files false or incomplete information with the Secretary with respect to such transaction, such person shall pay a penalty with respect to such return in the amount determined under subsection (b). ‘‘(b) AMOUNT OF PENALTY.— ‘‘(1) IN GENERAL.—Except as provided in paragraph (2), the penalty imposed under subsection (a) with respect to any failure shall be $50,000. ‘‘(2) LISTED TRANSACTIONS.—The penalty imposed under subsection (a) with respect to any listed transaction shall be an amount equal to the greater of— ‘‘(A) $200,000, or ‘‘(B) 50 percent of the gross income derived by such person with respect to aid, assistance, or advice which is provided with respect to the listed transaction before the date the return is filed under section 6111. Subparagraph (B) shall be applied by substituting ‘75 percent’ for ‘50 percent’ in the case of an intentional failure or act described in subsection (a). ‘‘(c) RESCISSION AUTHORITY.—The provisions of section 6707A(d) (relating to authority of Commissioner to rescind penalty) shall apply to any penalty imposed under this section. ‘‘(d) REPORTABLE AND LISTED TRANSACTIONS.—For purposes of this section, the terms ‘reportable transaction’ and ‘listed trans action’ have the respective meanings given to such terms by section 6707A(c).’’. Applicability. Applicability. 26 USC 6111 note.
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