of designation of new beneficiary The taxes imposed by chapters 12 and 13 shall apply to a transfer by reason of a change in the designated beneficiary under the program (or a rollover to the account of a new beneficiary) unless the new beneficiary is— (i) assigned to the same generation as (or a higher generation than) the old beneficiary (determined in accordance with section 2651), and (ii) a member of the family of the old beneficiary. (6) Additional tax for distributions not used for qualified downpayment assistance (A) In general The tax imposed by this chapter for any taxable year on any taxpayer who receives a payment or distribution from a qualified first-time homeowner assistance program which is includible in gross income shall be increased by 10 percent of the amount which is so includible. (B) Exceptions Subparagraph (A) shall not apply if the payment or distribution is— (i) made to a beneficiary (or to the estate of the designated beneficiary) on or after the death of the designated beneficiary, (ii) attributable to the designated beneficiary’s being disabled (within the meaning of section 72(m)(7)), or (iii) an amount which is includible in gross income solely by application of paragraph (2)(C)(i)(II) for the taxable year. (C) Contributions returned before certain date Subparagraph (A) shall not apply to the distribution of any contribution made during a taxable year on behalf of the designated beneficiary if— (i) such distribution is made before the first day of the sixth month of the taxable year following the taxable year, and (ii) such distribution is accompanied by the amount of net income attributable to such excess contribution. Any net income described in clause (ii) shall be included in gross income for the taxable year in which such excess contribution was made. (e) Reports Each officer or employee having control of the qualified distribution under a qualified first-time homeowner assistance program or their designee shall make such reports regarding such program to the Secretary and to