P U B L I C L A W 9 7 - 2 4 8 — S E P T. 3, 1982
96 S T A T. 627
(1) IN GENERAL.—Subchapter B of chapter 68 (relating to assessable penalties) is amended by adding a t the e n d thereof the following new section: "SEC. 6704. FAILURE TO KEEP RECORDS NECESSARY TO MEET REPORTING REQUIREMENTS UNDER SECTION 6047(e).
26 USC 6704.
"(a) LIABILITY FOR PENALTY.—Any person who— "(1) has a duty to report or may have a duty to report any information under section 6047(e), and "(2) fails to keep such records as may be required by regulations prescribed under section 6047(e) for the purpose of providing the necessary d a t a base for e i the r c u r r e n t reporting or future reporting, shall pay a penalty for each c a l e n d a r year for which the r e is any failure to keep such records. "(b) A M O U N T OF P E N A L T Y. —
"(1) IN GENERAL.—The p e n a l t y of any person for any calendar year shall be $50, multiplied by the n u m b e r of individuals with respect to whom such failure occurs in such year. "(2) MAXIMUM AMOUNT.—The penalty under this section of any person for any c a l e n d a r year shall not exceed $50,000. "(c) EXCEPTIONS. —
"(1) REASONABLE CAUSE.—No p e n a l t y shall be imposed by this section on any person for any failure which is shown to be d u e to reasonable cause and not to willful neglect. "(2) INABILITY
TO CORRECT PREVIOUS
FAILURE.—No
penalty
shall be imposed by t h i s section on any failure by a person if such failure is a t t r i b u t a b l e to a prior failure which has been penalized under this section and with respect to which the person has m a d e all reasonable efforts to correct the failure. "(3) P R E - 1983 FAILURES.—No penalty shall be imposed by this section on any person for any failure which is a t t r i b u t a b l e to a failure occurring before January 1, 1983, if the person has m a d e all reasonable efforts to correct such pre-1983 failure." (2) CLERICAL AMENDMENT.—The table of sections for subchapter B of chapter 68 is amended by adding a t the end thereof the following new section: "Sec. 6704. Failure to keep records necessary to meet reporting requirements under section 6047(e)." (d) COORDINATION
WITH
PAYMENTS OTHER T H A N
VOLUNTARY
WITHHOLDING
ON CERTAIN
WAGES.—Subsection (o) of section 3402
26 USC 3402.
(relating to extension of withholding to certain payments other than wages) is amended by adding at the e n d thereof the following new paragraph: "(6) COORDINATION WITH WITHHOLDING ON DESIGNATED DISTRI-
BUTIONS UNDER SECTION 3405.—This subsection shall not apply to any a m o u n t which is a designated distribution (within the m e a n i n g of section 3405(d)(1))." (e) EFFECTIVE D A T E S. — (1) AMENDMENT MADE BY SUBSECTIONS (a) AND (dt.—Except as
provided in paragraph (4), the amendment made by subsections (a) and (d) shall apply to payments or other distributions made after December 31, 1982. (2) AMENDMENTS MADE BY SUBSECTION
(b).—Except as pro-
vided in paragraph (4), the amendments m a d e by subsection (b) shall t a k e effect on January 1, 1983.
26 USC 3405 ^°^^-
�
