Definition: In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Input: SECTION 1. SHORT TITLE.

This Act may be cited as the ''Stop Outsourcing and Create American
Jobs Act of 2010''.

SEC. 2. IDENTIFYING CORPORATE TAX HAVEN COUNTRIES AND INCREASING
PENALTIES FOR TAX EVASION PRACTICES IN HAVEN COUNTRIES
THAT SHIP UNITED STATES JOBS OVERSEAS.

Not later than one year after the date of the enactment of this
Act, the Secretary of the Treasury shall develop and publish a list of
countries the Secretary determines to be corporate tax haven countries.
In developing such list, the Secretary may consider the following
criteria:
(1) Tax rate in the country.
(2) Lack of effective exchange of information between
governments.
(3) Lack of transparency in financial services sector.
(4) Lack of requirements of substantial economic activity.
(5) Incentives which may encourage a United States
corporation to invest abroad rather than domestically.
(6) Other factors deemed relevant by the Secretary.
The Secretary shall review and update such list every 3 years.

SEC. 3. INCREASE IN PENALTIES FOR CORPORATE TAX EVASION PRACTICES
CONCERNING RETURNS, DOCUMENTS, AND ACTIVITIES RELATING TO
TAX HAVEN COUNTRIES.

(a) Accuracy-Related Penalty on Underpayments.--Section 6662 of the
Internal Revenue Code of 1986 is amended by adding at the end the
following:
''(k) Increase in Penalty in Case of Tax Haven Countries.--
''(1) In general.--In the case of any portion of an
underpayment by a corporation for a taxable year which involves
an undisclosed foreign financial asset located in a tax haven
country at any time during such taxable year, subsection (a)
shall be applied with respect to such portion by substituting
'60 percent' for '20 percent'.
''(2) Tax haven country.--For purposes of this subsection,
the term 'tax haven country' means a country on the list
published under section 2(a) of the Stop Outsourcing and Create
American Jobs Act of 2010.''.
(b) Understatements With Respect to Reportable Transactions.--
Section 6662A of the Internal Revenue Code of 1986 is amended by adding
at the end the following:
''(f) Increase in Penalty in Case of Tax Haven Countries.--In the
case of any portion of a reportable transaction understatement by a
corporation for a taxable year which involves a transaction that
originates, terminates, or otherwise occurs in a tax haven country (as
defined in section 6662(k)(2)), subsection (a) shall be applied with
respect to such portion by substituting '40 percent' for '20
percent'.''.
(c) Fraud Penalty.--Section 6663 of the Internal Revenue Code of
1986 is amended by adding at the end the following:
''(d) Increase in Penalty in Case of Tax Haven Countries.--In the
case of any fraud by a corporation involving an activity occurring in a
tax haven country (as defined in section 6662(k)(2)), subsection (a)
shall be applied by substituting '100 percent' for '75 percent'.''.
(d) Erroneous Claim for Credit or Refund.--Section 6676 of the
Internal Revenue Code of 1986 is amended by redesignating subsection
(d) as subsection (e) and by inserting after subsection (c) the
following new subsection:
''(c) Increase in Penalty in Case of Tax Haven Countries.--In the
case of claim or credit by a corporation for any excessive amount due
for credits or refunds involving funds held or invested in a tax haven
country (as defined in section 6662(k)(2)), subsection (a) shall be
applied by substituting '40 percent' for '20 percent'.''.
(e) Willful Attempt To Evade or Defeat Tax.--Section 7201 of the
Internal Revenue Code of 1986 is amended by adding at the end the
following new sentence: ''In the case of an attempt by a corporation
which involves a tax haven country (as defined in section 6662(k)(2)),
the preceding sentence shall be applied by substituting '$1,000,000'
for '$500,000'''.
(f) Fraud and False Statements.--Section 7206 of the Internal
Revenue Code of 1986 is amended by adding at the end the following new
sentence: ''In the case of an offense by a corporation described in the
preceding sentence which involves a tax haven country (as defined in
section 6662(k)(2)), the preceding sentence shall be applied by
substituting '$1,000,000' for '$500,000'''.
(g) Fraudulent Returns, Statements, or Other Documents.--Section
7207 of the Internal Revenue Code of 1986 is amended by adding at the
end the following new sentence: ''In the case of an offense by a
corporation described in either of the two preceding sentences which
involves a tax haven country (as defined in section 6662(k)(2)), the
appropriate sentence shall be applied by substituting '$150,000' for
'$50,000'''.
(h) Effective Date.--The amendments made by this section shall
apply to--
(1) The amendments made by subsections (a) and (b) shall
apply to underpayments attributable to transactions entered
into after the date on which the list developed under section 2
is first published.
(2) The amendment made by subsection (c) shall apply to
returns the due date for which (determined without regard to
extensions) is after the date on which the list developed under
section 2 is first published.
(3) The amendment made by subsection (d) shall apply to
refunds and credits attributable to transactions entered into
after the date on which the list developed under section 2 is
first published.
(4) The amendment made by subsection (e), (f), and (g)
shall apply to offenses committed after the date on which the
list developed under section 2 is first published.

SEC. 4. PREFERENCES IN GOVERNMENT CONTRACTS.

(a) Preference.--A Federal department or agency may give a
preference in the award of a contract for the procurement of goods or
services in a fiscal year to any potential contractor that has not
engaged in outsourcing during the fiscal year preceding the fiscal year
in which the contract is awarded.
(b) Requirement To Request Outsourcing Information From Potential
Contractors.--
(1) In general.--In any solicitation for offers for a
contract issued by a Federal department or agency in a fiscal
year, the department or agency shall request each offeror for
the contract to provide information regarding whether the
offeror engaged in outsourcing during the fiscal year preceding
the fiscal year in which the contract is to be awarded.
(2) Penalty and debarment.--Any offeror found to be in
violation of paragraph (1), including making a false statement
regarding the offeror's engagement in outsourcing--
(A) shall, notwithstanding section 1001 of title
18, United States Code, be liable to the United States
for a civil penalty in an amount not more than the
value of the contract the offeror is seeking; and
(B) shall be debarred, by the head of the
department or agency soliciting the offer, from
contracting with the Federal Government for a period of
two years starting on the date on which the offeror is
found to be in violation of paragraph (1).
(3) Effective date.--This subsection shall apply to
solicitations for contracts issued on and after the date
occurring one year after the date of the enactment of this Act.
(c) Outsourcing Defined.--In this section, the term ''outsourcing''
means the laying off of a United States worker from a job, and the
hiring or contracting for the same job to be performed in a foreign
country.

SEC. 5. DEFICIT REDUCTION.

Amounts which the Secretary of the Treasury estimates are received
in the Treasury by reason of this Act are hereby set aside for the
reduction of the public debt.
Output:
Stop Outsourcing and Create American Jobs Act of 2010 - Directs the Secretary of the Treasury to develop and publish a list of countries that are tax havens for corporations.

Amends the Internal Revenue Code to increase the penalties on corporations for: (1) underpayment of tax involving an undisclosed foreign financial asset located in a tax haven country; (2) reportable transaction understatements involving transactions in a tax haven country; and (3) fraud, tax evasion, or false statements involving transactions in a tax haven country.

Grants a preference in the award of federal contracts to contractors who have not engaged in outsourcing. Defines "outsourcing" as the laying off of a U.S. worker from a job and the hiring or contracting for the same job to be performed in a foreign country.

Requires revenues generated by this Act to be set aside for the reduction of the public debt.