Notice of certain transfers to foreign persons

Each United States person who— transfers property to— Subsection (a)(1)(B) shall apply to a transfer by a United States person to a foreign partnership only if— If by reason of an adjustment under section 482 or otherwise, a contribution described in subsection (a)(1) is deemed to have been made, such contribution shall be treated for purposes of this section as having been made not earlier than the date specified by the Secretary. If any United States person fails to furnish the information described in subsection (a) at the time and in the manner required by regulations, such person shall pay a penalty equal to 10 percent of the fair market value of the property at the time of the exchange (and, in the case of a contribution described in subsection (a)(1)(B), such person shall recognize gain as if the contributed property had been sold for such value at the time of such contribution). Paragraph (1) shall not apply to any failure if the United States person shows such failure is due to reasonable cause and not to willful neglect. The penalty under paragraph (1) with respect to any exchange shall not exceed $100,000 unless the failure with respect to such exchange was due to intentional disregard.