. PUBLIC LAW 101-239—DEC. 19, 1989 103 STAT. 2359 (c) INCREASE IN PENALTY. —Subsection (d) of section 6038A is amended to read as follows: "(d) PENALTY FOR FAILURE TO FURNISH INFORMATION OR MAINTAIN RECORDS. — "(1) IN GENERAL. — If a reporting corporation— "(A) fails to furnish (within the time prescribed by regula- tions) any information described in subsection (b), or "(B) fails to maintain (or cause another to maintain) records as required by subsection (a), such corporation shall pay a penalty of $10,000 for each taxable year with respect to which such failure occurs. "(2) INCREASE IN PENALTY WHERE FAILURE CONTINUES AFTER NOTIFICATION.—I f any failure described in paragraph (1) contin- ues for more than 90 days after the day on which the Secretary mails notice of such failure to the reporting corporation, such corporation shall pay a penalty (in addition to the amount required under paragraph (1)) of $10,000 for each 30-day period (or fraction thereof) during which such failure continues after the expiration of such 90-day period. "(3) REASONABLE CAUSE. —For purposes of this subsection, the time prescribed by regulations to furnish information or main- tain records (and the beginning of the 90-day period after notice by the Secretary) shall be treated as not earlier than the last day on which (as shown to the satisfaction of the Secretary) reasonable cause existed for failure to furnish the information or maintain the records." (d) ENFORCEMENT OF INFORMATION REQUESTS.— Section 6038A is amended by redesignating subsection (e) as subsection (f) and by inserting after subsection (d) the following new subsection: "(e) ENFORCEMENT OF REQUESTS FOR CERTAIN RECORDS. — "(1) AGREEMENT TO TREAT CORPORATION AS AGENT.—The rules of paragraph (3) shall apply to any transaction between the reporting corporation and any related party who is a foreign person unless such related party agrees (in such manner and at such time as the Secretary shall prescribe) to authorize the reporting corporation to act as such related party's limited agent solely for purposes of applying sections 7602, 7603, and 7604 with respect to any request by the Secretary to examine records or produce testimony related to any such transaction or with respect to any summons by the Secretary for such records or testimony. The appearance of persons or production of • records by reason of the reporting corporation being such an agent shall not subject such persons or records to legal process for any purpose other than determining the correct treatment under this title of any transaction between the reporting cor- poration and such related party. "(2) RULES WHERE INFORMATION NOT FURNISHED. —I f^ "(A) for purposes of determining the correct treatment under this title of any transaction between the reporting corporation and a related party who is a foreign person, the Secretary issues a summons to such corporation to produce (either directly or as agent for such related party) any records or testimony, "(B) such summons is not quashed in a proceeding begun under paragraph (4) and is not determined to be invalid in a proceeding begun under section 7604(b) to enforce such summons, and
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