Instructions: 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 ''Small Business Penalty Fairness Act
of 2009''.

SEC. 2. LIMITATION ON PENALTY FOR FAILURE TO DISCLOSE REPORTABLE
TRANSACTIONS BASED ON RESULTING TAX BENEFITS.

(a) In General.--Subsection (b) of section 6707A of the Internal
Revenue Code of 1986 is amended to read as follows:
''(b) Amount of Penalty.--
''(1) In general.--Except as otherwise provided in this
subsection, the amount of the penalty under subsection (a) with
respect to any reportable transaction shall be 75 percent of
the decrease in tax shown on the return as a result of such
transaction (or which would have resulted from such transaction
if such transaction were respected for Federal tax purposes).
''(2) Maximum penalty.--The amount of the penalty under
subsection (a) with respect to any reportable transaction shall
not exceed--
''(A) in the case of a listed transaction, $200,000
($100,000 in the case of a natural person), or
''(B) in the case of any other reportable
transaction, $50,000 ($10,000 in the case of a natural
person).
''(3) Minimum penalty.--The amount of the penalty under
subsection (a) with respect to any transaction shall not be
less than $10,000 ($5,000 in the case of a natural person).''.
(b) Effective Date.--The amendment made by this section shall apply
to penalties assessed after December 31, 2006.

SEC. 3. REPORT ON TAX SHELTER PENALTIES AND CERTAIN OTHER ENFORCEMENT
ACTIONS.

(a) In General.--The Commissioner of Internal Revenue, in
consultation with the Secretary of the Treasury, shall submit to the
Committee on Ways and Means of the House of Representatives and the
Committee on Finance of the Senate an annual report on the penalties
assessed by the Internal Revenue Service during the preceding year
under each of the following provisions of the Internal Revenue Code of
1986:
(1) Section 6662A (relating to accuracy-related penalty on
understatements with respect to reportable transactions).
(2) Section 6700(a) (relating to promoting abusive tax
shelters).
(3) Section 6707 (relating to failure to furnish
information regarding reportable transactions).
(4) Section 6707A (relating to failure to include
reportable transaction information with return).
(5) Section 6708 (relating to failure to maintain lists of
advisees with respect to reportable transactions).
(b) Additional Information.--The report required under subsection
(a) shall also include information on the following with respect to
each year:
(1) Any action taken under section 330(b) of title 31,
United States Code, with respect to any reportable transaction
(as defined in section 6707A(c) of the Internal Revenue Code of
1986).
(2) Any extension of the time for assessment of tax
enforced, or assessment of any amount under such an extension,
under paragraph (10) of section 6501(c) of the Internal Revenue
Code of 1986.
(c) Date of Report.--The first report required under subsection (a)
shall be submitted not later than June 1, 2010.

SEC. 4. APPLICATION OF BAD CHECKS PENALTY TO ELECTRONIC PAYMENTS.

(a) In General.--Section 6657 of the Internal Revenue Code of 1986
is amended--
(1) by striking ''If any check or money order in payment of
any amount'' and inserting ''If any instrument in payment, by
any commercially acceptable means, of any amount'', and
(2) by striking ''such check'' each place it appears and
inserting ''such instrument''.
(b) Effective Dates.--The amendments made by this section shall
apply to instruments tendered after the date of the enactment of this
Act.

SEC. 5. APPLICATION OF LEVY TO PAYMENTS TO FEDERAL VENDORS RELATING TO
PROPERTY.

(a) In General.--Section 6331(h)(3) of the Internal Revenue Code of
1986 is amended by striking ''goods or services'' and inserting
''property, goods, or services''.
(b) Effective Date.--The amendment made by this section shall apply
to levies approved after the date of the enactment of this Act.

Passed the Senate February 9 (legislative day, February 8),
2010.

Attest:

Secretary.
111th CONGRESS

2d Session

S. 2917

_______________________________________________________________________

AN ACT

To amend the Internal Revenue Code of 1986 to modify the penalty for
failure to disclose certain reportable transactions and the penalty for
submitting a bad check to the Internal Revenue Service, to modify
certain rules relating to Federal vendors, and for other purposes.
Output:
Small Business Penalty Fairness Act of 2009 - Amends the Internal Revenue Code to limit the penalty for failure to disclose a reportable transaction (a transaction determined by the Internal Revenue Service [IRS] as having a potential for tax avoidance or evasion) to 75% of the decrease in tax shown on the return as a result of such transaction. Sets forth a maximum penalty for failure to report a reportable transaction and a minimum and maximum penalty for failure to report a listed transaction (a transaction specifically identified by the IRS as a tax avoidance transaction).

Requires the Commissioner of Internal Revenue to report by June 1, 2010, and then annually, to Congress on penalties relating to abusive tax shelters and reportable transactions.

Extends the penalty for tendering a bad check to the Internal Revenue Service to any commercially acceptable payment instrument (including electronic payments).

Expands the continuous tax levy on payments to vendors for goods and services to include payments for all property, goods, or services.