PUBLIC LAW 100-647—NOV. 10, 1988
102 STAT. 3569
"(i) such sum shall be treated as the amount shown on the joint return, "(ii) any negligence (or disregard of rules or regulations) on either separate return shall be treated as negligence (or such disregard) on the joint return, and "(iii) any fraud on either separate return shall be treated as fraud on the joint return." (2)(A) Paragraph (1) of section 6653(a) of the 1986 Code is amended to read as follows: "(1) IN GENERAL.—If any part of any underpayment (as defined in subsection (c)) of tax required to be shown on a return is due to negligence (or disregard of rules or regulations), there shall be added to the tax an amount equal to 5 percent of the underpayment." (B) Paragraph (1) of section 6653(b) of the 1986 Code is amended to read as follows: "(1) IN GENERAL.—If any part of any underpayment (as defined in subsection (c)) of t8ix required to be shown on a return is due to fraud, there shall be added to the tax an amount equal to 75 percent of the portion of the underpa3ntnent which is attributable to fraud." (C) Paragraph (2) of section 6601(e) of the 1986 Code is amend; ed by striking out "6659" each place it appears and inserting in lieu thereof "6653, 6659". (3) Subsection (g) of section 6653 of the 1986 (Dode is amended by adding at the end thereof the following new sentence: "If any penalty is imposed under subsection (a) by reason of the preceding sentence, only the portion of the underpayment which is attributable to the failure described in the preceding sentence shall be taken into account in determining the amount of the penalty under subsection (a)." (4) The amendments made by this subsection (other than paragraph (3)) shall apply to returns the due date for which (determined without regard to extensions) is after December 31, 1988. (c) AMENDMENT RELATED TO SECTION 1504 OF THE REFORM ACT.—
The repeal made by section 8002(c) of the Omnibus Budget Reconciliation Act of 1986 shall take effect as if the Tax Reform Act of 1986 had been enacted on the day before the date of the enactment of the Omnibus Budget Reconciliation Act of 1986.
Fraud.
Fraud.
26 USC 6001 note.
Effective date. 26 USC 6661 note.
(d) AMENDMENTS RELATED TO SECTION 1511 OF THE REFORM ACT.—
Section 6621 of the 1986 C!ode is amended— (1) by striking out "short-term Federal rate" each place it appears in subsections (a) and (b)(1) and inserting in lieu thereof "Federal short-term rate", and (2) by striking out "SHORT-TERM FEDERAL RATE" in the heading of subsection (b) and inserting in lieu thereof "FEDERAL SHORT-TERM RATE". (e) AMENDMENTS RELATED TO SECTION 1521 OF THE REFORM ACT.—
(I)(A) Paragraph (1) of section 6045(c) of the 1986 Code is amended by adding at the end thereof the following new sentence: "A person shall not be treated as a broker with respect to Agriculture and activities consisting of managing a farm on behalf of another agricultural commodities. person."
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