78 STAT. ]
PUBLIC LAW 88-563-SEPT. 2, 1964
(d) CLERICAL AMENDMENT.—The table of sections for part V of subchapter A of chapter 61 is amended by adding at the end thereof the following: "Sec. 6076. Time for filing interest equalization tax returns," (e) FIRST RETURN PERIOD.—Notwithstanding any provision of section 6011(d)(1) of the Internal Revenue Code of 1954, the first period for which returns shall be made under such section 6011(d)(1) shall be the period commencing July 19, 1963, and ending at the close of the calendar quarter in which the enactment of this Act occurs. SEC. 4. DISALLOWANCE OF DEDUCTION FOR AMOUNT PAID AS INTEREST EQUALIZATION TAX. Section 263(a) (relating to capital expenditures) is amended by adding at the end thereof the following new paragraph: "(3) Any amount paid as tax under section 4911 (relating to imposition of interest equalization tax) except to the extent that any amount attributable to the amount paid as tax is included in gross income for the taxable year." SEC. 5. ORIGINAL ISSUE DISCOUNT. Section 1232(b)(2) (relating to definition of issue price) is amended by inserting before the period at the end of the second sentence thereof the following: "increased by the amount, if any, of tax paid under section 4911 (and not credited, refunded, or reimbursed) on the acquisition of such bond or evidence of indebtedness by the first buyer". SEC. 6. PENALTIES. (a) ASSESSABLE PENALTIES.—Subchapter B of chapter 68 (relating to assessable penalties) is amended by adding at the end thereof the following new sections: "SEC. 6680. FAILURE TO FILE INTEREST EQUALIZATION TAX RETURNS. " I n addition to the penalty imposed by section 7203 (relating to willful failure to file return, supply information, or pay tax) any person who is required under section 6011(d)(1) (relating to interest equalization tax returns) to file a return for any period m respect of which, by reason of the provisions of section 4918, he incurs no liability for payment of the tax imposed by section 4911 and who fails to file such return within the time prescribed by section 6076, shall pay a penalty of $10 or 5 percent of the amount of tax for which he would incur liability for payment under section 4911 but for the provisions of section 4918, whichever is the greater, for each such failure unless it is shown that the failure is due to reasonable cause. The penalty imposed by this section shall not exceed $1,000 for eaxjh failure to file a return. "SEC. 6681. FALSE EQUALIZATION TAX CERTIFICATES. "(a)
FAI>SE CERTIFICATE OF AMERICAN OWNERSHIP.—In addition to
"(b)
LIABILITY or MEMBERS OF NATIONAL SECURITIES EXCHANGES
845
Ante, p. 843.
26 USC 26;
26 USC 1232.
Ij^^^^ ^^^'
26 USC 720i3.
Ante, p. 831. Ante, p. 844.
the criminal penalty imposed by section 7241, any person who willfully Post, p. 847. executes a certificate of American ownership or blanket certificate of American ownership described in section 4918(e) which contains a misstatement of material fact shall be liable to a penalty equal to 125 percent of the amount of tax imposed by section 4911 on the acquisition of the stock or debt obligation involved which, but for the provisions of section 4918, would be payable by the person acquiring the stock or debt obligation. AND ASSOCIATIONS.—A member or member organization of a national securities exchange described in section 4918(c) or a national securities association described in section 4918(d) shall be liable to a penalty equal to 125 percent of the amount of tax imposed by section 4911 on
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