Sec. 5102. Manager-level accuracy-related penalty on underpayment of unrelated business income tax
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Section 6662 is amended by adding at the end the following new subsection: In the case of any substantial underpayment of income tax which is attributable to the tax imposed by section 511 on the unrelated business taxable income of an organization for the taxable year, there is hereby imposed a tax with respect to such organization an amount equal to 5 percent of such underpayment to which the underpayment relates. Such tax shall be paid by any manager of the organization. For purposes of this subsection, the term manager means any officer, director, trustee, employee, or other individual who is under a duty to perform an act in respect of which the underpayment relates.
If more than one person is liable under paragraph
(1)with respect to an underpayment, all such persons shall be jointly and severally liable under such paragraph with respect to such underpayment With respect to any substantial underpayment of income tax for a taxable year, the maximum amount of the tax added by paragraph
(1)shall not exceed $20,000. . Section 6662A is amended by adding at the end the following new subsection: In the case of any portion of a reportable transaction understatement of the tax imposed by section 511 to which this section applies, there is hereby imposed a tax in an amount equal to 10 percent of such portion of the underpayment to which the reportable transaction understatement occurs. Such tax shall be paid by any manager of the organization. For purposes of this subsection, the term manager means any officer, director, trustee, employee, or other individual who is under a duty to perform an act in respect of which such understatement occurs. If more than one person is liable under paragraph
(1)with respect to an understatement, all such persons shall be jointly and severally liable under such paragraph with respect to such understatement. With respect to any understatement of tax to which this section applies, the maximum amount of the tax added by paragraph
(1)shall not exceed $40,000 . Section 6662 is amended— by striking the flush matter at the end of subsection (b), and by adding at the end the following new subsection: This section shall not apply to any portion of an underpayment on which a penalty is imposed under section 6663. Except as provided in paragraph
(1)or (2)(B) of section 6662A(e), this section shall not apply to the portion of any underpayment which is attributable to a reportable transaction understatement on which a penalty is imposed under section 6662A. . The amendments made by this section shall apply to taxable years beginning after December 31, 2014.