based document that is not authenticated in open court 
by a person with knowledge of such document, or any 
other evidence supplied by a person outside the jurisdic-
tion of a United States court, unless such person appears 
before the court.’’. 
(2) The table of subchapters for chapter 76 is 
amended by inserting after the item relating to sub-
chapter E the following new item: 
‘‘SUBCHAPTER F—PRESUMPTIONS FOR CERTAIN LEGAL PROCEEDINGS’’. 
(b) DEFINITION OF OFFSHORE SECRECY JURISDIC-
TION.—Section 7701(a) is amended by adding at the end 
the following new paragraph: 
‘‘(50) OFFSHORE SECRECY JURISDICTION.— 
‘‘(A) IN GENERAL.—The term ‘offshore se-
crecy jurisdiction’ means any foreign jurisdic-
tion which is listed by the Commissioner of In-
ternal Revenue as an offshore secrecy jurisdic-
tion for purposes of this title. 
‘‘(B) DETERMINATION OF JURISDICTIONS 
ON LIST.—A jurisdiction shall be listed under 
paragraph (A) if the Commissioner determines 
that such jurisdiction has corporate, business, 
bank, or tax secrecy rules and practices which, 
in the judgment of the Commissioner, unrea-
sonably restrict the ability of the United States 
to obtain information relevant to the enforce-
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ment of this title, unless the Commissioner also 
determines that such country has effective in-
formation exchange practices. 
‘‘(C) 
SECRECY
OR
CONFIDENTIALITY 
RULES AND PRACTICES.—For purposes of sub-
paragraph (B), corporate, business, bank, or 
tax secrecy or confidentiality rules and practices 
include both formal laws and regulations and 
informal government or business practices hav-
ing the effect of inhibiting access of law en-
forcement and tax administration authorities to 
beneficial ownership and other financial infor-
mation. 
‘‘(D) 
INEFFECTIVE
INFORMATION
EX-
CHANGE PRACTICES.—For purposes of subpara-
graph (B), a jurisdiction shall be deemed to 
have ineffective information exchange practices 
unless the Commissioner determines, on an an-
nual basis, that— 
‘‘(i) such jurisdiction has in effect a 
treaty or other information exchange 
agreement with the United States that 
provides for the prompt, obligatory, and 
automatic exchange of such information as 
is foreseeably relevant for carrying out the 
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provisions of the treaty or agreement or 
the administration or enforcement of this 
title, 
‘‘(ii) during the 12-month period pre-
ceding the annual determination, the ex-
change of information between the United 
States and such jurisdiction was in prac-
tice adequate to prevent evasion or avoid-
ance of United States income tax by 
United States persons and to enable the 
United States effectively to enforce this 
title, and 
‘‘(iii) during the 12-month period pre-
ceding the annual determination, such ju-
risdiction was not identified by an inter-
governmental group or organization of 
which the United States is a member as 
uncooperative with international tax en-
forcement or information exchange and the 
United States concurs in such identifica-
tion. 
‘‘(E) INITIAL LIST OF OFFSHORE SECRECY 
JURISDICTIONS.—For purposes of this para-
graph, each of the following foreign jurisdic-
tions, which have been previously and publicly 
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identified by the Internal Revenue Service as 
secrecy jurisdictions in Federal court pro-
ceedings, shall be deemed listed by the Commis-
sioner of Internal Revenue as an offshore se-
crecy jurisdiction unless delisted by the Com-
missioner under subparagraph (F)(ii): 
‘‘(i) Anguilla. 
‘‘(ii) Antigua and Barbuda. 
‘‘(iii) Aruba. 
‘‘(iv) Bahamas. 
‘‘(v) Barbados. 
‘‘(vi) Belize. 
‘‘(vii) Bermuda. 
‘‘(viii) British Virgin Islands. 
‘‘(ix) Cayman Islands. 
‘‘(x) Cook Islands. 
‘‘(xi) Costa Rica. 
‘‘(xii) Cyprus. 
‘‘(xiii) Dominica. 
‘‘(xiv) Gibraltar. 
‘‘(xv) Grenada. 
‘‘(xvi) Guernsey/Sark/Alderney. 
‘‘(xvii) Hong Kong. 
‘‘(xviii) Isle of Man. 
‘‘(xix) Jersey. 
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‘‘(xx) Latvia. 
‘‘(xxi) Liechtenstein. 
‘‘(xxii) Luxembourg. 
‘‘(xxiii) Malta. 
‘‘(xxiv) Nauru. 
‘‘(xxv) Netherlands Antilles. 
‘‘(xxvi) Panama. 
‘‘(xxvii) Samoa. 
‘‘(xxviii) St. Kitts and Nevis. 
‘‘(xxix) St. Lucia. 
‘‘(xxx) St. Vincent and the Grena-
dines. 
‘‘(xxxi) Singapore. 
‘‘(xxxii) Switzerland. 
‘‘(xxxiii) Turks and Caicos. 
‘‘(xxxiv) Vanuatu. 
‘‘(F) MODIFICATIONS TO LIST.—The Com-
missioner— 
‘‘(i) shall add to the list under para-
graph (A) jurisdictions which meet the re-
quirements of paragraph (B), and 
‘‘(ii) may remove from such list only 
those jurisdictions which do not meet the 
requirements of paragraph (B).’’. 
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(c) PRESUMPTIONS
FOR SECURITIES LAW PUR-
POSES.—Section 21 of the Securities Exchange Act of 
1934 (15 U.S.C. 78u) is amended by adding at the end 
the following new subsection: 
‘‘(j) PRESUMPTIONS PERTAINING TO CONTROL AND 
BENEFICIAL OWNERSHIP.— 
‘‘(1) CONTROL.—For purposes of any civil judi-
cial or administrative proceeding under this title, 
there shall be a rebuttable presumption that a 
United States person (other than an entity with 
shares regularly traded on an established securities 
market) who directly or indirectly formed, trans-
ferred assets to, was a beneficiary of, or received 
money or property or the use thereof from an entity, 
including a trust, corporation, limited liability com-
pany, partnership, or foundation (other than an en-
tity with shares regularly traded on an established 
securities market), formed, domiciled, or operating 
in an offshore secrecy jurisdiction (as defined in sec-
tion 7701(a)(50) of the Internal Revenue Code of 
1986), exercised control over such entity. The pre-
sumption of control created by this paragraph shall 
not be applied to prevent the Commission from de-
termining or arguing the absence of control. 
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‘‘(2) BENEFICIAL OWNERSHIP.—For purposes 
of any civil judicial or administrative proceeding 
under this title, there shall be a rebuttable presump-
tion that securities that are nominally owned by an 
entity, including a trust, corporation, limited liability 
company, partnership, or foundation (other than an 
entity with shares regularly traded on an established 
securities market), formed, domiciled, or operating 
in an offshore secrecy jurisdiction (as so defined), 
are beneficially owned by any United States person 
(other than an entity with shares regularly traded on 
an established securities market) who directly or in-
directly exercised control over such entity. The pre-
sumption of beneficial ownership created by this 
paragraph shall not be applied to prevent the Com-
mission from determining or arguing the absence of 
beneficial ownership.’’. 
(d) PRESUMPTION FOR REPORTING PURPOSES RE-
LATING
TO FOREIGN FINANCIAL ACCOUNTS.—Section 
5314 of title 31, United States Code, is amended by add-
ing at the end the following: 
‘‘(d) REBUTTABLE PRESUMPTION.—For purposes of 
this section, there shall be a rebuttable presumption that 
any account with a financial institution formed, domiciled, 
or operating in an offshore secrecy jurisdiction (as defined 
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in section 7701(a)(50) of the Internal Revenue Code of 
1986) contains funds in an amount that is at least suffi-
cient to require a report prescribed by regulations under 
this section.’’. 
(e) REGULATORY
AUTHORITY
AND
EFFECTIVE 
DATE.— 
(1) REGULATORY AUTHORITY.—Not later than 
180 days after the date of the enactment of this Act, 
the Secretary of the Treasury and the Chairman of 
the Securities and Exchange Commission shall each 
adopt regulations or other guidance necessary to im-
plement the amendments made by this section. The 
Secretary and the Chairman may by regulation or 
guidance provide that the presumption of control 
shall not extend to particular classes of transactions, 
such as corporate reorganizations or transactions 
below a specified dollar threshold, if either deter-
mines that applying such amendments to such trans-
actions is not necessary to carry out the purposes of 
such amendments. 
(2) EFFECTIVE DATE.—The amendments made 
by this section shall take effect on the date of the 
enactment of this Act. 
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SEC. 102. AUTHORIZING SPECIAL MEASURES AGAINST FOR-
EIGN JURISDICTIONS, FINANCIAL INSTITU-
TIONS, AND OTHERS THAT IMPEDE UNITED 
STATES TAX ENFORCEMENT. 
Section 5318A of title 31, United States Code, is 
amended— 
(1) by striking the section heading and insert-
ing the following: 
‘‘§ 5318A. Special measures for jurisdictions, financial 
institutions, or international transactions 
that are of primary money laundering 
concern or impede United States tax en-
forcement’’; 
(2) in subsection (a), by striking the subsection 
heading and inserting the following: 
‘‘(a) SPECIAL MEASURES TO COUNTER MONEY 
LAUNDERING AND EFFORTS TO IMPEDE UNITED STATES 
TAX ENFORCEMENT.—’’; 
(3) in subsection (c), by striking the subsection 
heading and inserting the following: 
‘‘(c) CONSULTATIONS
AND INFORMATION TO BE 
CONSIDERED IN FINDING JURISDICTIONS, INSTITUTIONS, 
TYPES OF ACCOUNTS, OR TRANSACTIONS TO BE OF PRI-
MARY MONEY LAUNDERING CONCERN OR TO BE IMPED-
ING UNITED STATES TAX ENFORCEMENT.—’’; 
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(4) in subsection (a)(1), by inserting ‘‘or is im-
peding United States tax enforcement’’ after ‘‘pri-
mary money laundering concern’’; 
(5) in subsection (a)(4)— 
(A) in subparagraph (A)— 
(i) by inserting ‘‘in matters involving 
money laundering,’’ before ‘‘shall consult’’; 
and 
(ii) by striking ‘‘and’’ at the end; 
(B) by redesignating subparagraph (B) as 
subparagraph (C); and 
(C) by inserting after subparagraph (A) 
the following: 
‘‘(B) in matters involving United States 
tax enforcement, shall consult with the Commis-
sioner of the Internal Revenue Service, the Sec-
retary of State, the Attorney General of the 
United States, and in the sole discretion of the 
Secretary, such other agencies and interested 
parties as the Secretary may find to be appro-
priate; and’’; 
(6) in each of paragraphs (1)(A), (2), (3), and 
(4) of subsection (b), by inserting ‘‘or to be imped-
ing United States tax enforcement’’ after ‘‘primary 
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money laundering concern’’ each place that term ap-
pears; 
(7) in subsection (b), by striking paragraph (5) 
and inserting the following: 
‘‘(5) PROHIBITIONS OR CONDITIONS ON OPEN-
ING OR MAINTAINING CERTAIN CORRESPONDENT OR 
PAYABLE-THROUGH
ACCOUNTS
OR
AUTHORIZING 
CERTAIN PAYMENT CARDS.—If the Secretary finds a 
jurisdiction outside of the United States, 1 or more 
financial institutions operating outside of the United 
States, or 1 or more classes of transactions within 
or involving a jurisdiction outside of the United 
States to be of primary money laundering concern or 
to be impeding United States tax enforcement, the 
Secretary, in consultation with the Secretary of 
State, the Attorney General of the United States, 
and the Chairman of the Board of Governors of the 
Federal Reserve System, may prohibit, or impose 
conditions upon— 
‘‘(A) the opening or maintaining in the 
United States of a correspondent account or 
payable-through account; or 
‘‘(B) the authorization, approval, or use in 
the United States of a credit card, charge card, 
debit card, or similar credit or debit financial 
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instrument by any domestic financial institu-
tion, financial agency, or credit card company 
or association, for or on behalf of a foreign 
banking institution, if such correspondent ac-
count, payable-through account, credit card, 
charge card, debit card, or similar credit or 
debit financial instrument, involves any such ju-
risdiction or institution, or if any such trans-
action may be conducted through such cor-
respondent account, payable-through account, 
credit card, charge card, debit card, or similar 
credit or debit financial instrument.’’; and 
(8) in subsection (c)(1), by inserting ‘‘or is im-
peding United States tax enforcement’’ after ‘‘pri-
mary money laundering concern’’; 
(9) in subsection (c)(2)(A)— 
(A) in clause (ii), by striking ‘‘bank secrecy 
or special regulatory advantages’’ and inserting 
‘‘bank, tax, corporate, trust, or financial secrecy 
or regulatory advantages’’; 
(B) in clause (iii), by striking ‘‘supervisory 
and counter-money’’ and inserting ‘‘supervisory, 
international tax enforcement, and counter- 
money’’; 
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(C) in clause (v), by striking ‘‘banking or 
secrecy’’ and inserting ‘‘banking, tax, or se-
crecy’’; and 
(D) in clause (vi), by inserting ‘‘, tax trea-
ty, or tax information exchange agreement’’ 
after ‘‘treaty’’; 
(10) in subsection (c)(2)(B)— 
(A) in clause (i), by inserting ‘‘or tax eva-
sion’’ after ‘‘money laundering’’; and 
(B) in clause (iii), by inserting ‘‘, tax eva-
sion,’’ after ‘‘money laundering’’; and 
(11) in subsection (d), by inserting ‘‘involving 
money laundering, and shall notify, in writing, the 
Committee on Finance of the Senate and the Com-
mittee on Ways and Means of the House of Rep-
resentatives of any such action involving United 
States tax enforcement’’ after ‘‘such action’’. 
SEC. 103. ALLOWING MORE TIME FOR INVESTIGATIONS IN-
VOLVING 
OFFSHORE 
SECRECY 
JURISDIC-
TIONS. 
(a) IN GENERAL.—Section 6501(c) is amended by 
adding at the end the following new paragraph: 
‘‘(11) RETURNS
INVOLVING
OFFSHORE
SE-
CRECY JURISDICTIONS.—In the case of a return for 
a year in which the taxpayer directly or indirectly 
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formed, owned, transferred assets to, was a bene-
ficiary of, or received money or property or the use 
thereof from a financial account or an entity (other 
than an entity with shares regularly traded on an es-
tablished securities market), including a trust, cor-
poration, limited liability company, partnership, or 
foundation (other than an entity with shares regu-
larly traded on an established securities market) 
formed, located, domiciled or operating in an off-
shore secrecy jurisdiction, the tax may be assessed, 
or a proceeding in court for the collection of such 
tax may be begun without assessment, at any time 
within 6 years after the return was filed.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to— 
(1) returns filed after the date of the enactment 
of this Act, and 
(2) returns filed on or before such date if the 
period specified in section 6501 of the Internal Rev-
enue Code of 1986 (determined without regard to 
the amendments made by subsection (a)) for assess-
ment of such taxes has not expired as of such date. 
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SEC. 104. REPORTING UNITED STATES BENEFICIAL OWN-
ERS OF FOREIGN OWNED FINANCIAL AC-
COUNTS. 
(a) IN GENERAL.—Subpart B of part III of sub-
chapter A of chapter 61 is amended by inserting after sec-
tion 6045 the following new sections: 
‘‘SEC. 6045A. RETURNS REGARDING UNITED STATES BENE-
FICIAL OWNERS OF FOREIGN OWNED FINAN-
CIAL ACCOUNTS. 
‘‘(a) REQUIREMENT OF RETURN.—If— 
‘‘(1) any withholding agent under sections 1441 
and 1442 has the control, receipt, custody, disposal, 
or payment of any amount constituting gross income 
from sources within the United States of any foreign 
entity, including a trust, corporation, limited liability 
company, partnership, or foundation (other than an 
entity with shares regularly traded on an established 
securities market), and 
‘‘(2) such withholding agent determines for pur-
poses of titles 14, 18, or 31 of the United States 
Code that a United States person has any beneficial 
interest in the foreign entity or in the account in 
such entity’s name (hereafter in this section referred 
to as ‘United States beneficial owner’), 
then the withholding agent shall make a return according 
to the forms or regulations prescribed by the Secretary. 
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‘‘(b) REQUIRED INFORMATION.—For purposes of 
subsection (a) the information required to be included on 
the return shall include— 
‘‘(1) the name, address, and, if known, the tax-
payer identification number of the United States 
beneficial owner, 
‘‘(2) the known facts pertaining to the relation-
ship of such United States beneficial owner to the 
foreign entity and the account, 
‘‘(3) the gross amount of income from sources 
within the United States (including gross proceeds 
from brokerage transactions), and 
‘‘(4) such other information as the Secretary 
may by forms or regulations provide. 
‘‘(c) STATEMENTS TO BE FURNISHED TO BENE-
FICIAL OWNERS WITH RESPECT TO WHOM INFORMATION 
IS REQUIRED TO BE REPORTED.—A withholding agent 
required to make a return under subsection (a) shall fur-
nish to each United States beneficial owner whose name 
is required to be set forth in such return a statement 
showing— 
‘‘(1) the name, address, and telephone number 
of the information contact of the person required to 
make such return, and 
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‘‘(2) the information required to be shown on 
such return with respect to such United States bene-
ficial owner. 
The written statement required under the preceding sen-
tence shall be furnished to the United States beneficial 
owner on or before January 31 of the year following the 
calendar year for which the return under subsection (a) 
was required to be made. In the event the person filing 
such return does not have a current address for the United 
States beneficial owner, such written statement may be 
mailed to the address of the foreign entity. 
‘‘(d) CROSS REFERENCE.— 
‘‘For provisions relating to penalties for failure to file re-
turns and reports, see sections 6721, 7203, and 7206(1). 
‘‘SEC. 6045B. RETURNS BY FINANCIAL INSTITUTIONS RE-
GARDING ESTABLISHMENT OF ACCOUNTS 
AND CREATION OF ENTITIES IN OFFSHORE 
SECRECY JURISDICTIONS. 
‘‘(a) REQUIREMENT OF RETURN.—Any financial in-
stitution directly or indirectly— 
‘‘(1) opening a bank, brokerage, or other finan-
cial account, or 
‘‘(2) forming or acquiring an entity, including a 
trust, corporation, limited liability company, partner-
ship, or foundation (other than an entity with shares 
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regularly traded on an established securities mar-
ket), 
in an offshore secrecy jurisdiction at the direction of, on 
behalf of, or for the benefit of a United States person shall 
make a return according to the forms or regulations pre-
scribed by the Secretary. 
‘‘(b) REQUIRED INFORMATION.—For purposes of 
subsection (a) the information required to be included on 
the return shall include— 
‘‘(1) the name, address, and taxpayer identifica-
tion number of such United States person, 
‘‘(2) the name and address of the financial in-
stitution at which a financial account is opened, the 
type of account, the account number, the name 
under which the account was opened, and the 
amount of the initial deposit, 
‘‘(3) the name and address of an entity formed 
or acquired, the type of entity, and the name and 
address of any company formation agent or other 
professional employed to form or acquire the entity, 
and 
‘‘(4) such other information as the Secretary 
may by forms or regulations provide. 
‘‘(c) STATEMENTS TO BE FURNISHED TO UNITED 
STATES PERSONS WITH RESPECT TO WHOM INFORMA-
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TION IS REQUIRED TO BE REPORTED.—A financial insti-
tution required to make a return under subsection (a) 
shall furnish to each United States person whose name 
is required to be set forth in such return a statement 
showing— 
‘‘(1) the name, address, and telephone number 
of the contact information of the person required to 
make such return, and 
‘‘(2) the information required to be shown on 
such return with respect to such United States per-
son. 
The written statement required under the preceding sen-
tence shall be furnished to such United States person on 
or before January 31 of the year following the calendar 
year for which the return under subsection (a) was re-
quired to be made. 
‘‘(d) EXEMPTION.—The Secretary may by regula-
tions exempt any class of United States persons or any 
class of accounts or entities from the requirements of this 
section if the Secretary determines that applying this sec-
tion to such persons, accounts, or entities is not necessary 
to carry out the purposes of this section. 
‘‘(e) CROSS REFERENCE.— 
‘‘For provisions relating to penalties for failure to file returns and reports re-
quired under this section, see sections 6721, 7203, and 
7206(1).’’. 
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(b) CLERICAL AMENDMENT.—The table of sections 
for such subpart is amended by inserting after the item 
relating to section 6045 the following new items: 
‘‘Sec. 6045A. Returns regarding United States beneficial owners of foreign 
owned financial accounts. 
‘‘Sec. 6045B. Returns by financial institutions regarding establishment of ac-
counts and creation of entities in offshore secrecy jurisdic-
tions.’’. 
(c) ADDITIONAL PENALTIES.— 
(1) ADDITIONAL PENALTIES ON BANKS.—Sec-
tion 5239(b)(1) of the Revised Statutes (12 U.S.C. 
93(b)(1)) is amended by inserting ‘‘or any of the 
provisions of section 6045B of the Internal Revenue 
Code of 1986,’’ after ‘‘any regulation issued pursu-
ant to,’’. 
(2) ADDITIONAL
PENALTIES
ON
SECURITIES 
FIRMS.—Section 21(d)(3)(A) of the Securities Ex-
change Act of 1934 (15 U.S.C. 78u(d)(3)(A)) is 
amended by inserting ‘‘any of the provisions of sec-
tion 6045B of the Internal Revenue Code of 1986,’’ 
after ‘‘the rules or regulations thereunder,’’. 
(d) REGULATORY
AUTHORITY
AND
EFFECTIVE 
DATE.— 
(1) REGULATORY AUTHORITY.—Not later than 
180 days after the date of the enactment of this Act, 
the Secretary of the Treasury shall adopt regula-
tions, forms, or other guidance necessary to imple-
ment this section. 
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(2) EFFECTIVE DATE.—Section 6045A of the 
Internal Revenue Code of 1986 (as added by this 
section) and the amendment made by subsection 
(c)(1) shall take effect with respect to amounts paid 
into foreign owned accounts after December 31 of 
the year of the date of the enactment of this Act. 
Section 6045B of such Code (as so added) and the 
amendment made by subsection (c)(2) shall take ef-
fect with respect to accounts opened or entities 
formed or acquired after December 31 of the year 
of the date of the enactment of this Act. 
SEC. 105. PREVENTING MISUSE OF FOREIGN TRUSTS FOR 
TAX EVASION. 
(a) ATTRIBUTION OF TRUST PROTECTOR POWERS 
TO GRANTORS.—Section 672 is amended by redesignating 
subsection (f) as subsection (g) and by inserting after sub-
section (e) the following new subsection: 
‘‘(f) GRANTOR TREATED AS HOLDING ANY POWER 
OR INTEREST OF TRUST PROTECTOR OR ENFORCER.— 
For purposes of this subpart, a grantor shall be treated 
as holding any power or interest held by any trust pro-
tector or trust enforcer or similar person appointed to ad-
vise, influence, oversee, or veto the actions of the trustee.’’. 
(b) TREATMENT OF UNITED STATES RECIPIENTS OF 
FOREIGN TRUST ASSETS AS TRUST BENEFICIARIES.— 
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Section 679 is amended by redesignating subsections (c) 
and (d) as subsections (d) and (e), respectively, and by 
inserting after subsection (b) the following new subsection: 
‘‘(c) CERTAIN UNITED STATES PERSONS TREATED 
AS BENEFICIARIES.—Any United States person receiving 
from a foreign trust cash or other property, or receiving 
the use thereof, shall be treated as a beneficiary of such 
trust regardless of whether such person is a named bene-
ficiary, except to the extent that such person paid fair 
market value for the benefit received.’’. 
(c) TREATMENT OF FOREIGN TRUST TRANSFERS OF 
REAL ESTATE, ARTWORK, OR JEWELRY CONSISTENTLY 
WITH TRANSFERS OF SECURITIES.—Section 643(i)(1) is 
amended by striking ‘‘or marketable securities’’ and in-
serting ‘‘or other property, including real estate, market-
able securities, artwork, jewelry, and other personal prop-
erty,’’. 
(d) TREATMENT OF TRUSTS WITH FUTURE OR CON-
TINGENT
UNITED
STATES
BENEFICIARIES.—Section 
679(a)(1) is amended— 
(1) by inserting ‘‘or for any subsequent year’’ 
after ‘‘such year’’, and 
(2) by inserting ‘‘(including a contingent bene-
ficiary)’’ after ‘‘beneficiary’’. 
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SEC. 106. LIMITATION ON LEGAL OPINION PROTECTION 
FROM PENALTIES WITH RESPECT TO TRANS-
ACTIONS INVOLVING OFFSHORE SECRECY 
JURISDICTIONS. 
(a) IN GENERAL.—Section 6664 is amended by add-
ing at the end the following new subsection: 
‘‘(e) CERTAIN OPINIONS MAY NOT BE RELIED 
UPON.—For purposes of this part, an opinion of a tax 
advisor may not be relied upon to establish that there was 
reasonable cause for any portion of an underpayment, or 
that the taxpayer acted in good faith with respect to such 
portion, if such portion is attributable to a transaction any 
part of which involves an entity or financial account in 
an offshore secrecy jurisdiction.’’. 
(b) REGULATORY AUTHORITY.—The Secretary of the 
Treasury may by regulation or guidance provide that sub-
section (e) of section 6664 of the Internal Revenue Code 
of 1986, as added by subsection (a), does not apply to 
legal opinions that express a confidence level that substan-
tially exceeds the ‘‘more likely than not’’ confidence level; 
or that such subsection does not apply to classes of trans-
actions, such as corporate reorganizations, where the Sec-
retary determines that applying such subsection to such 
transactions is not necessary to carry out the purposes of 
such subsection. 
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