PUBLIC LAW 97-248—SEPT. 3, 1982
96 STAT. 615
"(3) COORDINATION WITH PENALTY IMPOSED BY SECTION 6659.— For purposes of determining the amount of the addition to tax assessed under subsection (a), there shall not be taken into account that portion of the substantial understatement on which a penalty is imposed under section 6659 (relating to 95 Stat. 341. addition to tax in the case of valuation overstatements). "(c) AUTHORITY TO WAIVE.—The Secretary may waive all or any part of the addition to tax provided by this section on a showing by the taxpayer that there was reasonable cause for the understatement (or part thereof) and that the taxpayer acted in good faith." (b) CONFORMING AMENDMENT.—The table of sections for subchapter A of chapter 68 is amended by striking out the last item and inserting in lieu thereof the following: "Sec. 6661. Substantial understatement of liability. "Sec. 6662. Applicable rules."
(c) EFFECTIVE DATE.—The amendments made by this section shall 26 USC 6661 apply to returns the due date (determined without regard to exten- "°^®sion) for filing of which is after December 31, 1982. SEC. 324. PENALTIES FOR DOCUMENTS UNDERSTATING TAX LIABILITY. (a) GENERAL RULE.—Subchapter B of chapter 68 (relating to assessable penalties) is amended by inserting after section 6700 the following new section: "SEC. 6701. PENALTIES FOR AIDING AND ABETTING UNDERSTATEMENT OF 26 USC 6701. TAX LIABILITY. "(a) IMPOSITION OF PENALTY.—Any person—
"(1) who aids or assists in, procures, or advises with respect to, the preparation or presentation of any portion of a return, affidavit, claim, or other document in connection with any matter arising under the internal revenue laws, "(2) who knows that such portion will be used in connection with any material matter arising under the internal revenue laws, and "(3) who knows that such portion (if so used) will result in an understatement of the liability for tax of another person, shall pay a penalty with respect to each such document in the amount determined under subsection (b). "(b) AMOUNT OF PENALTY.—
"(1) IN GENERAL.—Except as provided in paragraph (2), the amount of the penalty imposed by subsection (a) shall be $1,000. "(2) CORPORATIONS.—If the return, affidavit, claim, or other document relates to the tax liability of a corporation, the amount of the penalty imposed by subsection (a) shall be $10,000. "(3) ONLY i PENALTY PER PERSON PER PERIOD.—If any person is subject to a penalty under subsection (a) with respect to any document relating to any taxpayer for any taxable period (or where there is no taxable period, any taxable event), such person shall not be subject to a penalty under subsection (a) with respect to any other document relating to such taxpayer for such taxable period (or event). "(c) ACTIVITIES OF SUBORDINATES.—
"(1) IN GENERAL.—For purposes of subsection (a), the term 'procures' includes— "(A) ordering (or otherwise causing) a subordinate to do an act, and
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