124 STAT. 2561 PUBLIC LAW 111–240—SEPT. 27, 2010 Subtitle B—Revenue Provisions PART I—REDUCING THE TAX GAP SEC. 2101. INFORMATION REPORTING FOR RENTAL PROPERTY EXPENSE PAYMENTS. (a) IN GENERAL.—Section 6041 of the Internal Revenue Code of 1986, as amended by section 9006 of the Patient Protection and Affordable Care Act, is amended by redesignating subsections (h) and (i) as subsections (i) and (j), respectively, and by inserting after subsection (g) the following new subsection: ‘‘(h) TREATMENT OF RENTAL PROPERTY EXPENSE PAYMENTS.— ‘‘(1) IN GENERAL.—Solely for purposes of subsection (a) and except as provided in paragraph (2), a person receiving rental income from real estate shall be considered to be engaged in a trade or business of renting property. ‘‘(2) EXCEPTIONS.—Paragraph (1) shall not apply to— ‘‘(A) any individual, including any individual who is an active member of the uniformed services or an employee of the intelligence community (as defined in section 121(d)(9)(C)(iv)), if substantially all rental income is derived from renting the principal residence (within the meaning of section 121) of such individual on a temporary basis, ‘‘(B) any individual who receives rental income of not more than the minimal amount, as determined under regu- lations prescribed by the Secretary, and ‘‘(C) any other individual for whom the requirements of this section would cause hardship, as determined under regulations prescribed by the Secretary.’’. (b) EFFECTIVE DATE.—The amendments made by subsection (a) shall apply to payments made after December 31, 2010. SEC. 2102. INCREASE IN INFORMATION RETURN PENALTIES. (a) FAILURE TO FILE CORRECT INFORMATION RETURNS.— (1) IN GENERAL.—Subsections (a)(1), (b)(1)(A), and (b)(2)(A) of section 6721 of the Internal Revenue Code of 1986 are each amended by striking ‘‘$50’’ and inserting ‘‘$100’’. (2) AGGREGATE ANNUAL LIMITATION.—Subsections (a)(1), (d)(1)(A), and (e)(3)(A) of section 6721 of such Code are each amended by striking ‘‘$250,000’’ and inserting ‘‘$1,500,000’’. (b) REDUCTION WHERE CORRECTION WITHIN 30 DAYS.— (1) IN GENERAL.—Subparagraph (A) of section 6721(b)(1) of the Internal Revenue Code of 1986 is amended by striking ‘‘$15’’ and inserting ‘‘$30’’. (2) AGGREGATE ANNUAL LIMITATION.—Subsections (b)(1)(B) and (d)(1)(B) of section 6721 of such Code are each amended by striking ‘‘$75,000’’ and inserting ‘‘$250,000’’. (c) REDUCTION WHERE CORRECTION ON OR BEFORE AUGUST 1.— (1) IN GENERAL.—Subparagraph (A) of section 6721(b)(2) of the Internal Revenue Code of 1986 is amended by striking ‘‘$30’’ and inserting ‘‘$60’’. (2) AGGREGATE ANNUAL LIMITATION.—Subsections (b)(2)(B) and (d)(1)(C) of section 6721 of such Code are each amended by striking ‘‘$150,000’’ and inserting ‘‘$500,000’’. (d) AGGREGATE ANNUAL LIMITATIONS FOR PERSONS WITH GROSS RECEIPTS OF NOT MORE THAN $5,000,000.— 26 USC 6721. 26 USC 6041 note. Regulations. Ante, p. 855.
