(

a) Section of the Internal Revenue Code, relating to information with respect to certain foreign corporations, shall apply, except as otherwise provided. (

b) Section 6038(

a) is modified as follows:

(1) The information required to be filed with the Franchise Tax Board under this

section shall be a copy of the information required to be filed with the Internal Revenue Service.

(2) The term “United States person,” as defined in

Section 7701(a)(30) of the Internal Revenue Code, shall be limited to a domestic corporation, as defined in

Section 7701(

a) of the Internal Revenue Code, or a bank, as defined in

Section 23039, that is subject to the tax imposed under

Chapter 2 (commencing with

Section 23101),

Chapter 2.5 (commencing with

Section 23400), or

Chapter 3 (commencing with

Section 23501), of

Part 11. (c)

(1) Unless it is shown that the failure is due to reasonable cause and not due to willful neglect, a penalty shall be imposed under this part for failure to furnish information and that penalty shall be determined in accordance with

Section of the Internal Revenue Code, except as otherwise provided. (

A) Section 6038(

b) of the Internal Revenue Code shall be modified by substituting “$1,000” for “$10,000” in each place it appears. (

B) Section 6038(b)(2) of the Internal Revenue Code shall be modified by substituting “$24,000” for “$50,000.”

(2) No penalty shall be imposed under paragraph (1) if the copy of the information required to be filed with the Internal Revenue Service was not attached to the taxpayer’s return as originally filed but the taxpayer does both of the following: (

A) Furnishes the copy of the information required to be filed with the Internal Revenue Service either upon its own initiative or within days of notification by the Franchise Tax Board of the requirements of this section. (

B) Agrees to attach a copy of the information required to be filed with the Internal Revenue Service to the taxpayer’s original return filed for subsequent taxable years.

(3) All or any portion of the penalty imposed under paragraph (1) may be waived by the Franchise Tax Board when the taxpayer has entered into a voluntary disclosure agreement under

Article 8 (commencing with

Section 19191) of

Chapter 4.

(4) The penalty imposed under this subdivision shall not apply to returns required to be filed for taxable years beginning before January 1, 1998. (

d) This

section shall apply to returns required to be filed for taxable years beginning on or after January 1, 1997.