PUBLIC LAW 100-647—NOV. 10, 1988

"Sec. 7433. Civil damages for certain unauthorized collection actions.
"Sec. 7434. Cross references."

102 STAT. 3749

(d) EFFECTIVE DATE.—-The amendments made by this section shall 26 USC 6673
apply to actions by officers or employees of the Internal Revenue note.
Service after the date of the enactment of this Act.

SEC. 6242. ASSESSABLE PENALTY FOR IMPROPER DISCLOSURE OR USE
OF INFORMATION BY PREPARERS OF RETURNS.

(a) IN GENERAL.—Part I of subchapter B of chapter 68 of the 1986
Code (relating to assessable penalties) is amended by adding at the
end thereof the following new section:

"SEC. 6712. DISCLOSURE OR USE OF INFORMATION BY PREPARERS OF
RETURNS.

"(a) IMPOSITION OF PENALTY.—If any person who is engaged in the
business of preparing, or providing services in connection with the
preparation of, returns of tax imposed by chapter 1, or any person
who for compensation prepares any such return for any other
person, and who—

"(1) discloses any information furnished to him for, or in
connection with, the preparation of any such return, or

"(2) uses any such information for any purpose other than to
prepare, or assist in preparing, any such return,
shall pay a penalty of $250 for each such disclosure or use, but the
total amount imposed under this subsection on such a person for
any calendar year shall not exceed $10,000.

"(b) EXCEPTIONS.—The rules of section 7216(b) shall apply for
purposes of this section.

"(c) DEFICIENCY PROCEDURES NOT To APPLY.—Subchapter B of
chapter 63 (relating to deficiency procedures for income, estate, gift,
and certain excise taxes) shall not apply in respect of the assessment
or collection of any penalty imposed by this section."

(b) CRIMINAL PENALTY To APPLY ONLY WHERE KNOWING OR RECK-
LESS DISCLOSURE OR USE.—The material preceding paragraph (1) of
section 7216(a) of the 1986 Code is amended by striking out "and
who—" and inserting in lieu thereof "and who knowingly or reck-
lessly—".

(c) CLERICAL AMENDMENT.—The table of sections for part I of
subchapter B of chapter 68 of the 1986 Code is amended by adding at
the end thereof the following new item:

"Sec. 6712. Disclosure or use of information by preparers of returns/'

(d) EFFECTIVE DATE.—The amendments made by this section shall 26 USC 6712
apply to disclosures or uses after December 31,1988. note.

PART IV—TAX COURT JURISDICTION

SEC. 6243. JURISDICTION TO RESTRAIN CERTAIN PREMATURE ASSESS-
MENTS.

(a) IN GENERAL.—Section 6213(a) of the 1986 Code (relating to time
for filing petition and restriction on assessment) is amended by
striking out the period at the end of the last sentence and inserting
in lieu thereof ", including the Tax Court. The Tax Court shall have
no jurisdiction to enjoin any action or proceeding under this subsec-
tion unless a timely petition for a redetermination of the deficiency
has been filed and then only in respect of the deficiency that is the
subject of such petition/'