with respect to the proper application of the knowledge requirement of section 6701(a)(3) of the Internal Revenue Code of 1986. (b) Failure to comply with due diligence requirements treated as knowledge for purposes of assessable penalty for aiding and abetting understatement of tax liability In the case of any COVID–ERTC promoter, the knowledge requirement of section 6701(a)(3) of the Internal Revenue Code of 1986 shall be treated as satisfied with respect to any COVID–ERTC document with respect to which such promoter provided aid, assistance, or advice, if such promoter fails to comply with the due diligence requirements referred to in subsection (c)(1). (c) Assessable penalty for failure to comply with due diligence requirements (1) In general Any COVID–ERTC promoter which provides aid, assistance, or advice with respect to any COVID–ERTC document and which fails to comply with due diligence requirements imposed by the Secretary with respect to determining eligibility for, or the amount of, any COVID-related employee retention tax credit, shall pay a penalty of $1,000 for each such failure. (2) Due diligence requirements Except as otherwise provided by the Secretary, the due diligence requirements referred to in paragraph (1) shall be similar to the due diligence requirements imposed under section 6695(g). (3) Restriction to documents used in connection with returns or claims for refund Paragraph (1) shall not apply with respect to any COVID–ERTC document unless such document constitutes, or relates to, a return or claim for refund. (4) Treatment as assessable penalty, etc For purposes of the Internal Revenue Code of 1986, the penalty imposed under paragraph (1) shall be treated in the same manner as a penalty imposed under section 6695(g). (5) Secretary For purposes of this subsection, the term Secretary means the Secretary of the Treasury or the Secretary’s delegate. (d) Assessable penalties for failure to disclose information, maintain client lists, etc For purposes of sections 6111, 6112, 6707 and 6708 of