S.Amdt. 2404

As your analyst, I look out for us and want to make sure we hold our elected officials accountable. Here is what Ms. Cortez Masto's amendment, numbered SA 2404, aims to change and add to the bill based strictly on the text provided:

• Strike subsection (g) of section 70606 and replace it with a new subsection (g) that sets specific effective dates for provisions, limitations on credits and refunds, an extension of the limitation on assessment, and an amendment to penalties for erroneous claims for refunds or credits.

• Add a new subsection (h) that increases the assessable penalty on COVID-ERTC promoters for aiding and abetting understatements of tax liability. This sets the penalty amount to the greater of $200,000 ($10,000 for a natural person) or 75 percent of the gross income derived or to be derived by the promoter.

• Add a new subsection (i) treating the failure to comply with due diligence requirements as satisfying the knowledge requirement for penalties regarding the understatement of tax liability for COVID-ERTC promoters.

• Add a new subsection (j) that creates assessable penalties for failure to disclose information and maintain client lists. It treats any COVID-related employee retention tax credit as a listed and reportable transaction for any COVID-ERTC promoter, and treats the promoter as a material advisor.