A supplier who certifies falsely faces a penalty
What the document says“then such person shall pay a penalty in the amount determined under subsection (b).”
The section adds a new section 6695B to part I of subchapter B of chapter 68 of the Internal Revenue Code of 1986 imposing a penalty where a person gives a certification under section 7701(a)(52)(D), knows or should know it will be used in a determination, knows or should know it is inaccurate or false about whether the property was produced by a prohibited foreign entity or about the direct costs stated, and that inaccuracy causes an energy credit to be disallowed and an understatement of income tax above the lesser of 5 percent of the tax required to be shown and $100,000.
What the document actually says“then such person shall pay a penalty in the amount determined under subsection (b).”
The person must pay a penalty. Its size is set by the next rule.
The person must have known the paper was wrong. The error must have cost the government tax. The shortfall must top 5 percent of the tax or $100,000.
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