Sec. 301. Penalty for promoting abusive tax shelters
258 words·~1 min read·
/bill/113/hr/1554/ih/section-301·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 6700 is amended— by redesignating subsections
(b)and
(c)as subsections
(d)and (e), respectively, by striking a penalty and all that follows through the period in the first sentence of subsection
(a)and inserting a penalty determined under subsection
(b), and by inserting after subsection
(a)the following new subsections: The amount of the penalty imposed by subsection
(a)shall not exceed 150 percent of the gross income derived (or to be derived) from such activity by the person or persons subject to such penalty. The penalty amount determined under paragraph
(1)shall be calculated with respect to each instance of an activity described in subsection (a), each instance in which income was derived by the person or persons subject to such penalty, and each person who participated in such an activity. If more than 1 person is liable under subsection
(a)with respect to such activity, all such persons shall be jointly and severally liable for the penalty under such subsection. The payment of any penalty imposed under this section or the payment of any amount to settle or avoid the imposition of such penalty shall not be considered an ordinary and necessary expense in carrying on a trade or business for purposes of this title and shall not be deductible by the person who is subject to such penalty or who makes such payment. . Section 6700(a) is amended by striking the last sentence. The amendments made by this section shall apply to activities after the date of the enactment of this Act.