|Code Section||Effective Date||Name of Act||Name of Provision||10yr Revenue Estimate ($millions)|
|6677||12/31/2009||The Hiring Incentives to Restore Employment Act||Minimum penalty with respect to failure to report oncertain foreign trusts||*See sec. 1471|
*Note on Revenue Estimate
See section 1471, provision: Reporting on certain foreign accounts.
Minimum penalty with respect to failure to report oncertain foreign trusts
Explanation of Provision
Increase of the minimum penalty with respect to failure to report on certain foreign trusts
Under the provision, the initial penalty for failing to report under section 6048 is the greater of $10,000 or 35 percent of the gross reportable amount in cases (1) and (3) and the greater of $10,000 or five percent of the gross reportable amount in case (2). Thus, an initial penalty of $10,000 may be imposed even where the Secretary has insufficient information to determine the gross reportable amount. The additional $10,000 penalty for every additional 30 days of delinquency continues to apply.
Amendment to the maximum penalty with respect to failure to report on certain foreign trusts
The provision provides that the penalties with respect to failure to report on certain foreign trusts may exceed the gross reportable amount. However, to the extent that a taxpayer provides sufficient information for the Secretary to determine that the aggregate amount of the penalties exceeds the gross reportable amount, the Secretary is required to refund such excess to the taxpayer.