Sec. 302. Reduction in excise tax on certain accumulations in qualified retirement plans

209 words·~1 min read·/bill/117/hr/2954/ih/section-302

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Section 4974(a) of the Internal Revenue Code of 1986 is amended by striking 50 percent and inserting 25 percent . Section 4974 of such Code is amended by adding at the end the following new subsection: In the case of a taxpayer who— corrects, during the correction window, a shortfall of distributions from an individual retirement plan which resulted in imposition of a tax under subsection (a), and submits a return, during the correction window, reflecting such tax (as modified by this subsection), the first sentence of subsection

(a)shall be applied by substituting 10 percent for 25 percent . For purposes of this subsection, the term correction window means the period of time beginning on the date on which the tax under subsection

(a)is imposed with respect to a shortfall of distributions from an individual retirement plan, and ending on the earlier of— the date on which the Secretary initiates an audit, or otherwise demands payment, with respect to the shortfall of distributions, or the last day of the second taxable year that begins after the end of the taxable year in which the tax under subsection

(a)is imposed. . The amendments made by this section shall apply to taxable years beginning after December 31, 2021.