Sec. 203. Preparer penalties with respect to preparation of returns and other submissions
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Section 6694 is amended by striking return or claim of refund each place it appears and inserting return, claim of refund, or other submission to the Secretary . Section 6694 , as amended by paragraph (1), is amended by striking return or claim each place it appears and inserting return, claim, or other submission to the Secretary . Subsection
(b)of section 6694 is amended by adding at the end the following new paragraph: In the case of an understatement to which this section applies that is attributable to the tax return preparer’s making a false or fraudulent return or claim for refund without the taxpayer’s knowledge, subsection
(a)shall be applied by substituting 100 percent of the amount of the understatement for 50 percent of the amount derived (or to be derived) by the tax return preparer with respect to the return or claim . This penalty shall be in addition to any other penalties provided by law. . Section 6695 is amended by striking return or claim of refund each place it appears and inserting return, claim of refund, or other submission . Section 6695 , as amended by paragraph (1), is amended by striking return or claim each place it appears and inserting return, claim, or other submission . Subsections (a), (b), and
(c)of section 6695 are each amended by striking $50 and inserting $1,000 . Subsections (a), (b), and
(c)of section 6695 are each amended by striking the last sentence thereof. Subparagraph
(A)of section 7803(d)(2) is amended by striking and at the end of clause (iii), by striking the period at the end of clause
(iv)and inserting , and , and by adding at the end the following new clause: a summary of the penalties assessed and collected during the reporting period under sections 6694 and 6695 and under the regulations promulgated under section 330 of title 31, United States Code, and a review of the procedures by which violations are identified and penalties are assessed under those sections, . The first sentence of paragraph
(4)of section 6109(a) is amended by striking return or claim for refund and inserting return, claim for refund, statement, or other document . The amendment made by paragraph
(1)shall apply to any return, claim for refund, or submission to the Secretary that is filed after the date of the enactment of this Act.
(a)The Secretary of the Treasury shall coordinate the requirements under the regulations promulgated under sections 330 and 330A of title 31, United States Code, with the return requirements of section 6060 of the Internal Revenue Code of 1986. The regulations required by this section shall be prescribed not later than one year after the date of the enactment of this Act.