26 U.S.C. § 6712 — Failure to disclose treaty-based return po-

Page 3813 TITLE 26—INTERNAL REVENUE CODE § 6713 (1) $1,000, or (2) 50 percent of the aggregate cost of the of- fers and solicitations referred to in subsection (a)(1) which occurred on such day and with re- spect to which there was such a failure. (c) Definitions For purposes of this section— (1) Tax-exempt organization The term ‘‘tax-exempt organization’’ means any organization which— (A) is described in subsection (c) or (d) of section 501 and exempt from taxation under section 501(a), or (B) is a political organization (as defined in section 527(e)). (2) Day on which failure occurs The day on which any failure referred to in subsection (a) occurs shall be determined under rules similar to the rules of section 6710(d). (Added Pub. L. 100–203, title X, § 10705(a), Dec. 22, 1987, 101 Stat. 1330–463.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Pub. L. 100–203, title X, § 10705(c), Dec. 22, 1987, 101 Stat. 1330–464, provided that: ‘‘The amendments made by this section [enacting this section] shall apply to of- fers and solicitations after January 31, 1988.’’ § 6712. Failure to disclose treaty-based return po- sitions (a) General rule If a taxpayer fails to meet the requirements of section 6114, there is hereby imposed a penalty equal to $1,000 ($10,000 in the case of a C corpora- tion) on each such failure. (b) Authority to waive The Secretary may waive all or any part of the penalty provided by this section on a show- ing by the taxpayer that there was reasonable cause for the failure and that the taxpayer acted in good faith. (c) Penalty in addition to other penalties The penalty imposed by this section shall be in addition to any other penalty imposed by law. (Added Pub. L. 100–647, title I, § 1012(aa)(5)(B), Nov. 10, 1988, 102 Stat. 3532.) Editorial Notes CODIFICATION Another section 6712 was renumbered section 6713 of this title. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section applicable to taxable periods the due date for filing returns for which (without extension) occurs after Dec. 31, 1988, see section 1012(aa)(5)(D) of Pub. L. 100–647, set out as a note under section 6114 of this title. § 6713. Disclosure or use of information by pre- parers of returns (a) Imposition of penalty If any person who is engaged in the business of preparing, or providing services in connection with the preparation of, returns of tax imposed by chapter 1, or any person who for compensa- tion prepares any such return for any other per- son, and who— (1) discloses any information furnished to him for, or in connection with, the preparation of any such return, or (2) uses any such information for any pur- pose other than to prepare, or assist in pre- paring, any such return, shall pay a penalty of $250 for each such disclo- sure or use, but the total amount imposed under this subsection on such a person for any cal- endar year shall not exceed $10,000. (b) Enhanced penalty for improper use or disclo- sure relating to identity theft (1) In general In the case of a disclosure or use described in subsection (a) that is made in connection with a crime relating to the misappropriation of another person’s taxpayer identity (as defined in section 6103(b)(6)), whether or not such crime involves any tax filing, subsection (a) shall be applied— (A) by substituting ‘‘$1,000’’ for ‘‘$250’’, and (B) by substituting ‘‘$50,000’’ for ‘‘$10,000’’. (2) Separate application of total penalty limita- tion The limitation on the total amount of the penalty under subsection (a) shall be applied separately with respect to disclosures or uses to which this subsection applies and to which it does not apply. (c) Exceptions The rules of section 7216(b) shall apply for pur- poses of this section. (d) Deficiency procedures not to apply Subchapter B of chapter 63 (relating to defi- ciency procedures for income, estate, gift, and certain excise taxes) shall not apply in respect of the assessment or collection of any penalty imposed by this section. (Added Pub. L. 100–647, title VI, § 6242(a), Nov. 10, 1988, 102 Stat. 3749, § 6712; renumbered § 6713, Pub. L. 101–239, title VII, § 7816(v)(1), Dec. 19, 1989, 103 Stat. 2423; amended Pub. L. 116–25, title II, § 2009(a), July 1, 2019, 133 Stat. 1007.) Editorial Notes AMENDMENTS 2019—Subsecs. (b) to (d). Pub. L. 116–25 added subsec. (b) and redesignated former subsecs. (b) and (c) as (c) and (d), respectively. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2019 AMENDMENT Pub. L. 116–25, title II, § 2009(c), July 1, 2019, 133 Stat. 1007, provided that: ‘‘The amendments made by this section [amending this section and section 7216 of this title] shall apply to disclosures or uses on or after the date of the enactment of this Act [July 1, 2019].’’ EFFECTIVE DATE Pub. L. 100–647, title VI, § 6242(d), Nov. 10, 1988, 102 Stat. 3749, provided that: ‘‘The amendments made by this section [enacting this section and amending sec-