§6695B Penalty for substantial misstatements on certification provided by supplier

Summary

It punishes a person who gives a supplier certification about a manufactured product or part that they knew, or should have known, would be used to claim an energy tax credit, when the certification is false about whether a banned foreign entity made the item or about the item’s direct costs. If that false certification causes the credit to be denied and makes the tax understatement bigger than the smaller of 5 percent of the tax shown on the return or $100,000, a penalty applies. The penalty equals the larger of 10 percent of the tax underpayment caused by the false statement or $5,000. No penalty applies if the person proves the mistake was for a reasonable cause and not willful neglect. Words used here that also appear in the other tax rule keep the same meanings.