SECTION 6. SECTION 6720 PENALTY

Section 6720 imposes penalties on any donee organization required under § 170(f)(12)(A) to furnish an acknowledgment to a donor that knowingly furnishes a false or fraudulent acknowledgment, or knowingly fails to furnish an acknowledgment in the manner, at the time, and showing the information required under § 170(f)(12) or regulations thereunder. The Service and the Treasury Department intend to issue regulations under § 6720 clarifying that the donee organization information report described in section 3 of this notice is an integral part of the acknowledgment requirement. The regulations will clarify the application of the § 6720 penalties to a donee organization that knowingly files a false or fraudulent information report with the Service, or that knowingly fails to file such information report with the Service in the manner, at the time, and showing the information required under § 170(f)(12) or the regulations prescribed thereunder and this notice. The regulations will be effective as of the date of publication of this notice.