the Internal Revenue Code [chapter 1 of Title 26, I.R.C. 19391, except that where any readjustment of interests occurs in a partnership as defined in section 3797(a) (2) of such code [section 3797(a) (2) of Title 26, I.R.C. 1939] the fiscal year of the partnership or partnerships involved in such readjustment shall be determined in accordance with regulations prescribed by the Board.

(i) Received or accrued and paid or incurred.

The terms "received or accrued" and "paid or incurred" shall be construed according to the method of accounting employed by the contractor or subcontractor in keeping his records, but if no such method of accounting has been employed, or if the method so employed does not, in the opinion of the Board, or, upon redetermination, in the opinion of The Tax Court of the United States, properly reflect his receipts or accruals or payments or obligations, such receipts or accruals or such payments or obligations shall be determined in accordance with such method as in the opinion of the Board, or, upon redetermination, in the opinion of The Tax Court of the United States, does properly reflect such receipts or accruals or such payments or obligations. (j) Person.

The term "person" shall include an individual, firm, corporation, association, partnership, and any organized group of persons whether or not incorporated.

(k) Materials.

The term "materials” shall include raw materials, articles, commodities,, parts, assemblies, products, machinery, equipment, supplies, components, technical data, processes, and other personal property. (1) Agency of the government.

The term "agency of the Government" means any part of the executive branch of the Government or any independent establishment of the Government or part thereof, including any department (whether or not a Department as defined in subsection (a) of this section), any corporation wholly or partly owned by the United States which is an instrumentality of the United States, or any board, bureau, division, service, office, officer, employee, authority, administration, or other establishment of the Government which is not a part of the legislative or judicial branches.

(m) Renegotiation loss carryforwards. (1) Allowance.

Notwithstanding any other provision of this section, the renegotiation loss deduction for any fiscal year ending on or after December 31, 1956, shall be allowed as an item of cost in such fiscal year, under regulations of the Board.

(2) Definitions.

For the purposes of this subsection

(A) The term "renegotiation loss deduction"

means

(i) for any fiscal year ending on or after December 31, 1956, and before January 1, 1959, the sum of the renegotiation loss carryforwards to such fiscal year from the preceding two fiscal years; and

(ii) for any fiscal year ending after December 31, 1958, the sum of the renegotiation loss carryforwards to such fiscal year from the preceding five fiscal years (excluding any fiscal year ending before December 31, 1956).

(B) The term "renegotiation loss" means, for any fiscal year, the excess, if any, of costs (computed without the application of this subsection and the third sentence of subsection (f)) paid or incurred in such fiscal year with respect to receipts or accruals subject to the provisions of this title [sections 1211 to 1224 of this Appendix] over the amount of receipts or accruals subject to the provisions of this title [sections 1211 to 1224 of this Appendix] which were received or accrued in such fiscal year, but only to the extent that such excess did not result from gross inefficiency of the contractor or subcontractor.

(3) Amount of carryforwards to 1956, 1957, and 1958. For the purposes of paragrgaph (2) (A) (1), a renegotiation loss for any fiscal year (hereinafter in this paragraph referred to as the "loss year") shall be a renegotiation loss carryforward to the first fiscal year succeeding the loss year. Such renegotiation loss, after being reduced (but not below zero) by the profits derived from contracts with the Departments and subcontracts in the first fiscal year succeeding the loss year, shall be a renegotiation loss carryforward to the second fiscal year succeeding the loss year. For the purposes of the preceding sentence, the profits derived from contracts with the Departments and subcontracts in the first fiscal year succeeding the loss year shall be computed as follows:

(A) If such first fiscal year ends on or after December 31, 1956, such profits shall be computed by determining the amount of the renegotiation loss deduction for such first fiscal year without regard to the renegotiation loss for the loss year.

(B) If such first fiscal year ends before December 31, 1956, such profits shall be computed without regard to any renegotiation loss for the loss year or any fiscal year preceding the loss year. (4) Amount of carryforwards to fiscal years ending after 1958.

For the purposes of paragraph (2) (A) (ii), a renegotiation loss for any fiscal year (hereinafter in this paragraph referred to as the "loss year") ending on or after December 31, 1956, shall be a renegotiation loss carryforward to each of the five fiscal years following the loss year. The entire amount of such loss shall be carried to the first fiscal year succeeding the loss year. The portion of such loss which shall be carried to each of the other four fiscal years shall be the excess, if any, of the amount of such loss over the sum of the profits derived from contracts with the Departments and subcontracts in each of the prior fiscal years to which such loss may be carried. For the purposes of the preceding sentence, the profits derived from contracts with the Departments and subcontracts in any such prior fiscal year shall be computed by determining the amount of the renegotiation loss deduction without regard to the renegotiation loss for the loss year or for any fiscal year thereafter, and the profits so

computed shall not be considered to be less than zero. (Mar. 23, 1951, ch. 15, Title I, § 103, 65 Stat. 8; Aug. 1, 1956, ch. 821, §§ 3(a), 4, 70 Stat. 786; Sept. 6, 1958, Pub. L. 85–930, § 2(a), 72 Stat. 1789; July 13, 1959, Pub. L. 86-89, § 2, 73 Stat. 210; June 30, 1964, Pub. L. 88-339, § 2(a), 78 Stat. 233.)

AMENDMENTS

1964 Subsec. (a). Pub. L. 88-339, § 2(a) (1), inserted "the Federal Aviation Agency."

Subsec. (b). Pub. L. 88-339, § 2(a) (2), inserted "the Administrator of the Federal Aviation Agency."

1959-Subsec. (m). Pub. L. 86-89, § 2(1), substituted "Renegotiation loss carryforwards" for "Two-year loss carryforward" in catchline.

Subsec. (m) (2) (A). Pub. L. 86-89, § 2(2), designated existing provisions as cl. (1) with limitation to fiscal year ending before Jan. 1, 1959, and added cl. (ii).

Subsec. (m) (3). Pub. L. 86-89, § 2(3), substituted the heading "Amount of carryforwards to 1956, 1957, and 1958." for "Amount of carryforwards." and the introductory words "For the purposes of paragraph (2) (A) (1), a" for "A".

Subsec. (m) (4). Pub. L. 86-89, § 2(4), added subsec. (m) (4).

1958-Subsec. (a). Pub. L. 85-930 included the National Aeronautics and Space Administration.

Subsec. (b). Pub. L. 85-930 included the Administrator of the National Aeronautics and Space Administration. 1956-Subsec. (a). Act Aug. 1, 1956, § 3(a), included the United States Maritime Administration and the Federal Maritime Board, excluded the Department of Commerce, the Reconstruction Finance Corporation, the Canal Zone Government, the Panama Canal Company, and the Housing and Home Finance Agency, and limited the definition to include other agencies only during a national emergency.

Subsec. (b). Act Aug. 1, 1956, § 3(a), restricted the definition to include the Secretary of Commerce only with respect to the Maritime Administration, to include the Federal Maritime Board, and to exclude the Board of Directors of the Reconstruction Finance Corporation, the Governor of the Canal Zone, the president of the Panama Canal Company, and the Housing and Home Finance

The name of the Tax Court of the United States, referred to in text, was changed to the United States Tax Court by Pub. L. 91-172, title IX, § 951 et seq., Dec. 30, 1969, 83 Stat. 730, which changed the status of that Court to a constitutional court of record.

The name of the Federal Aviation Agency has been changed to the Federal Aviation Administration under Pub. L. 89-670, Oct. 15, 1966, 80 Stat. 931, which created the Department of Transportation and created a Federal Aviation Administration to be headed by a Federal Aviation Administrator within such Department. See section 1651 et seq. of Title 49, Transportation.

EFFECTIVE DATE OF 1964 AMENDMENT Section 2(b) of Pub. L. 88-339 provided that: "The amendments made by subsection (a) [to subsecs. (a) and (b) of this section] shall apply to contracts with the Federal Aviation Agency, and related subcontracts, only to the extent of the amounts received or accrued by a contractor or subcontractor after June 30, 1964."

EFFECTIVE DATE OF 1958 AMENDMENT

Section 2(b) of Pub. L. 85-930 provided that: "The amendments made by subsection (a) [to subsecs. (a) and (b) of this section] shall apply only with respect to contracts entered into by the National Aeronautics and Space Administration and to contracts transferred to such Administration from a Department (as defined in section 103 (a) of such Act [subsec. (a) of this section]) under section 301 [sections 2302 and 2303 (a) (5) of Title 10 and sections 511-513 of Title 50] or section 302 [section 2453

of Title 42] of the National Aeronautics and Space Act of 1958, and to related sub-contracts."

EFFECTIVE DATE OF 1956 AMENDMENT Section 3 (b) of act Aug. 1, 1956, provided that: "The amendment made by subsection (a) [to subsecs. (a) and (b) shall take effect on December 31, 1956."

ABOLITION OF FEDERAL MARITIME Board

Section 304 of 1961 Reorg. Plan No. 7, effective Aug. 12, 1961, 26 F.R. 7315, 75 Stat. 840, set out in the Appendix to Title 5, Government Organization and Employees, abolished the Federal Maritime Board, including the offices of the members of the Board. Functions of the Board were transferred either to the Federal Maritime Commission or to the Secretary of Commerce by sections 103 and 202 of 1961 Reorg. Plan No. 7.

AGENCIES WITHIN THE TERM "DEPARTMENT"

Ex. Ord. No. 10260, June 27, 1951, 16 F.R. 6271, as amended by Ex. Ord. No. 10773, July 1, 1958, 23 F.R. 5061; Ex. Ord. No. 10782, Sept. 6, 1958, 23 F.R. 6971; Ex. Ord. No. 11051. Sept. 27, 1962, 27 F.R. 9683; Ex. Ord. No. 10294, Sept. 28, 1951, 16 F.R. 9927; Ex. Ord. No. 10299, Oct. 31, 1951, 16 F.R. 11135; Ex. Ord. No. 10369, June 30, 1952, 17 F.R. 5932; Ex. Ord. No. 10567, Sept. 29, 1954, 19 F.R. 6361, which were formerly set out under this section and which designated the National Advisory Committee for Aeronautics, the Tennessee Valley Authority, the United States Coast Guard, the Defense Materials Procurement Agency, the Bureau of Mines, the Geological Survey, the Bonneville Power Administration, the Bureau of Reclamation, and the Federal Facilities Corporation to be within the term "Department" as defined in subsection (a) of this section are eliminated since they preceded the amendment of this section by act Aug. 1, 1956, which empowered the President, during a national emergency proclaimed by him or declared by the Congress after Aug. 1, 1956, to designate as a "Department" any other agency of the Government exercising functions having a direct and immediate connection with the national defense.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1211, 1212, 1214 to 1224 of this Appendix.

§ 1214. Renegotiation clause in contracts.

Subject to section 106 (a) [section 1216 (a) of this Appendix] the Secretary of each Department specifically named in section 103 (a) [section 1213 (a) of this Appendix] shall insert in each contract made by such Department thirty days or more after the date of the enactment of this Act [March 23, 19511, and the Secretary of each Department designated by the President under section 103 (a) [section 1213 (a) of this Appendix] shall insert in each contract made by such Department thirty days or more after the date of such designation, a provision under which the contractor agrees

(1) to the elimination of excessive profits through renegotiation;

(2) that there may be withheld by the United States from amounts otherwise due the contractor, or that he will repay to the United States, if paid to him, any excessive profits;

(3) that he will insert in each subcontract described in section 103(g) [section 1213(g) of this Appendix] a provision under which the subcontractor agrees

(A) to the elimination of excessive profits through renegotiation;

(B) that there may be withheld by the contractor for the United States from amounts otherwise due to the subcontractor, or that the subcontractor will repay to the United States, if paid to him, any excessive profits;

(C) that the contractor shall be relieved of all liability to the subcontractor on account of any amount so withheld, or so repaid by the subcontractor to the United States;

(D) that he will insert in each subcontract described in section 103(g) [section 1213(g) of this Appendix] provisions corresponding to those of subparagraphs (A), (B), and (C) of this paragraph, and to those of this subparagraph;

(4) that there may be withheld by the United States from amounts otherwise due the contractor or that he will repay to the United States, as the Secretary may direct, any amounts which under section 105(b) (1) (C) [section 1215(b) (1) (C) of this Appendix] the contractor is directed to withhold from a subcontractor and which are actually unpaid at the time the contractor receives such direction.

The obligations assumed by the contractor or subcontractor under paragraph (1) or (3) (A) of this section, as the case may be, agreeing to the elimination of excessive profits through renegotiation shall be binding on him only if the contract or subcontract, as the case may be, is subject to this title [sections 1211 to 1224 of this Appendix]. A provision inserted in a contract or subcontract, which recites in substance that the contract or subcontract shall be deemed to contain all the provisions required by this section shall be sufficient compliance with this section. Whether or not the provisions specified in this section are inserted in a contract with a Department or subcontract, to which this title [sections 1211 to 1224 of this Appendix] is applicable, such contract or subcontract, as the case may be, shall be considered as having been made subject to this title [sections 1211 to 1224 of this Appendix] in the same manner and to the same extent as if such provisions had been inserted. (Mar. 23, 1951, ch. 15, title I, § 104, 65 Stat. 11.)

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 1211 to 1213, 1215 to 1224 of this Appendix.

§ 1215. Renegotiation proceedings. (a) Proceedings before Board.

Renegotiation proceedings shall be commenced by the mailing of notice to that effect, in such form as may be prescribed by regulation, by registered mail or by certified mail to the contractor or subcontractor. The Board shall endeavor to make an agreement with the contractor or subcontractor with respect to the elimination of excessive profits received or accrued, and with respect to such other matters relating thereto as the Board deems advisable. Any such agreement, if made, may, with the consent of the contractor or subcontractor, also include provisions with respect to the elimination of excessive profits likely to be received or accrued. If the Board does not make an agreement with respect to the elimination of excessive profits received or accrued, it shall issue and enter an order determining the amount, if any, of such excessive profits, and forthwith give notice thereof by registered mail or by certified mail to the contractor or subcontractor. In the absence of the filing of a petition with The

Tax Court of the United States under the provisions of and within the time limit prescribed in section 108 [section 1218 of this Appendix], such order shall be final and conclusive and shall not be subject to review or redetermination by any court or other agency. The Board shall exercise its powers with respect to the aggregate of the amounts received or accrued during the fiscal year (or such other period as may be fixed by mutual agreement) by a contractor or subcontractor under contracts with the Departments and subcontracts, and not separately with respect to amounts received or accrued under separate contracts with the Departments or subcontracts, except that the Board may exercise such powers separately with respect to amounts received or accrued by the contractor or subcontractor under or any one more separate contracts with the Departments or subcontracts at the request of the contractor or subcontractor. By agreement with any contractor or subcontractor, and pursuant to regulations promulgated by it, the Board may in its discretion conduct renegotiation on a consolidated basis in order properly to reflect excessive profits of two or more related contractors or subcontractors. Renegotiation shall be conducted on a consolidated basis with a parent and its subsidiary corporations which constitute an affiliated group under section 141(d) of the Internal Revenue Code [section 141(d) of Title 26, I.R.C. 1939] if all of the corporations included in such affiliated group request renegotiation on such basis and consent to such regulations as the Board shall prescribe with respect to (1) the determination and elimination of excessive profits of such affiliated group, and (2) the determination of the amount of the excessive profits of such affiliated group allocable, for the purposes of section 3806 of the Internal Revenue Code [section 3806 of Title 26, I.R.C. 19391, to each corporation included in such affiliated group. Whenever the Board makes a determination with respect to the amount of excessive profits, and such determination is made by order, it shall, at the resquest of the contractor or subcontractor, as the case may be, prepare and furnish such contractor or subcontractor with a statement of such determination, of the facts used as a basis therefor, and of its reasons for such determination. Such statement shall not be used in The Tax Court of the United States as proof of the facts or conclusions stated therein.

(b) Methods of eliminating excess profits. (1) General procedures.

Upon the making of an agreement, or the entry of an order, under subsection (a) of this section by the Board, or the entry of an order under section 108 [section 1218 of this Appendix] by The Tax Court of the United States, determining excessive profits, the Board shall forthwith authorize and direct the Secretaries or any of them to eliminate such excessive profits

(A) by reductions in the amounts otherwise payable to the contractor under contracts with the Departments, or by other revision of their terms;

(B) by withholding from amounts otherwise due to the contractor any amount of such excessive profits;

(C) by directing any person having a contract with any agency of the Government, or any subcontractor thereunder, to withhold for the account of the United States from any amounts otherwise due from such person or such subcontractor to a contractor, or subcontractor, having excessive profits to be eliminated, and every such person or subcontractor receiving such direction shall withhold and pay over to the United States the amounts so required to be withheld;

(D) by recovery from the contractor or subcontractor, or from any person or subcontractor directed under subparagraph (C) of this subsection to withhold for the account of the United States, through payment, repayment, credit, or suit any amount of such excessive profits realized by the contractor or subcontractor or directed under subparagraph (C) [of this subsection] to be withheld for the account of the United States; or (E) by any combination of these methods, as is deemed desirable.

(2) Interest.

Interest at the rate of 4 per centum per annum shall accrue and be paid on the amount of such excessive profits from the thirtieth day after the date of the order of the Board or from the date fixed for repayment by the agreement with the contractor or subcontractor to the date of repayment, and on amounts required to be withheld by any person or subcontractor for the account of the United States pursuant to paragraph (1)(C) of this subsection, from the date payment is demanded by the Secretaries or any of them to the date of payment. When The Tax Court of the United States, under section 108 [section 1218 of this Appendix], redetermines the amount of excessive profits received or accrued by a contractor or subcontractor, interest at the rate of 4 per centum per annum shall accrue and be paid by such contractor or subcontractor as follows:

(A) When the amount of excessive profits determined by the Tax Court is greater than the amount determined by the Board, interest shall accrue and be paid on the amount determined by the Board from the thirtieth day after the date of the order of the Board to the date of repayment and, in addition thereto, interest shall accrue and be paid on the additional amount determined by the Tax Court from the date of its order determining such excessive profits to the date of repayment.

(B) When the amount of excessive profits determined by the Tax Court is equal to the amount determined by the Board, interest shall accrue and be paid on such amount from the thirtieth day after the date of the order of the Board to the date of repayment.

(C) When the amount of excessive profits determined by the Tax Court is less than the amount determined by the Board, interest shall accrue and be paid on such lesser amount from the thirtieth day after the date of the order of the Board to the date of repayment, except that no interest shall accrue or be payable on such lesser amount if such lesser amount is not in excess of an amount which the contractor or subcontractor tendered in pay

ment prior to the issuance of the order of the Board.

(3) Suits for recovery.

Actions on behalf of the United States may be brought in the appropriate courts of the United States to recover, (A) from the contractor or subcontractor, any amount of such excessive profits and accrued interest not withheld or eliminated by some other method under this subsection, and (B) from any person or subcontractor who has been directed under paragraph (1)(C) of this subsection to withhold for the account of the United States, the amounts required to be withheld under such paragraph, together with accrued interest thereon.

(4) Liability of sureties.

The surety under a contract or subcontract shall not be liable for the repayment of any excessive profits thereon.

(5) Liability of assignees.

Nothing herein contained shall be construed (A) to authorize any Department or agency of the Government, except to the extent provided in the Assignment of Claims Act of 1940, as now or hereafter amended [section 203 of Title 31 and section 15 of Title 411, to withhold from any assignee referred to in said Act [section 203 of Title 31 and section 15 of Title 411, any moneys due or to become due, or to recover any moneys paid, to such assignee under any contract with any Department or agency where such moneys have been assigned pursuant to such Act [section 203 of Title 31 and section 15 of Title 411, or (B) to authorize any Department or agency of the Government to direct the withholding pursuant to this Act [sections 1211 to 1233 of this Appendix], or to recover pursuant to this Act [sections 1211 to 1233 of this Appendix], from any bank, trust company or other financing institution (including any Federal lending agency) which is an assignee under any subcontract, any moneys due or to become due or paid to any such assignee under such subcontract.

(6) Indemnification.

Each person is indemnified by the United States against all claims on account of amounts withheld by such person pursuant to this subsection from a contractor or subcontractor and paid over to the United States.

(7) Treatment of recoveries.

All money recovered by way of repayment or suit under this subsection shall be covered into the Treasury as miscellaneous receipts. Upon the withholding of any amount of excessive profits or the crediting of any amount of excessive profits against amounts otherwise due a contractor from appropriations from the Treasury, the Secretary shall certify the amount thereof to the Treasury and the appropriations of his Department shall be reduced by an amount equal to the amount so withheld or credited. The amount of such reductions shall be transferred to the surplus fund of the Treasury.

(8) Credit for taxes paid.

In eliminating excessive profits, the Secretary shall allow the contractor or subcontractor credit

for Federal income and excess profits taxes as provided in section 3806 of the Internal Revenue Code [section 3806 of Title 26, I.R.C. 1939].

(c) Periods of limitations.

In the absence of fraud or malfeasance or willful misrepresentation of a material fact, no proceeding to determine the amount of excessive profits for any fiscal year shall be commenced more than one year after a financial statement under subsection (e) (1) of this section is filed with the Board with respect to such year, and, in the absence of fraud or malfeasance or willful misrepresentation of a material fact, if such proceeding is not commenced prior to the expiration of one year following the date upon which such statement is so filed, all liabilities of the contractor or subcontractor for excessive profits received or accrued during such fiscal year shall thereupon be discharged. If an agreement or order determining the amount of excessive profits is not made within two years following the commencement of the renegotiation proceeding, then, in the absence of fraud or malfeasance or willful misrepresentation of a material fact, upon the expiration of such two years all liabilities of the contractor or subcontractor for excessive profits with respect to which such proceeding was commenced shall thereupon be discharged, except that (1) if an order is made within such two years pursuant to a delegation of authority under subsection (d) of section 107 [section 1217 (d) of this Appendix], such two-year limitation shall not apply to review of such order by the Board, and (2) such twoyear period may be extended by mutual agreement. (d) Agreements to eliminate excessive profits.

For the purpose of this title [sections 1211 to 1224 of this Appendix] the Board may make final or other agreements with a contractor or subcontractor for the elimination of excessive profits and for the discharge of any liability for excessive profits under this title Isaid sections]. Such agreements may contain such terms and conditions as the Board deems advisable. Any such agreement shall be conclusive according to its terms; and, except upon a showing of fraud or malfeasance or a willful misrepresentation of a material fact, (1) such agreement shall not for the purposes of this title [said sections] be reopened as to the matters agreed upon, and shall not be modified by any officer, employee, or agent of the United States, and (2) such agreement and any determination made in accordance therewith shall not be annulled, modified, set aside, or disregarded in any suit, action, or proceeding. Notwithstanding any other provision of this title [said sections], however, the Board shall have the power, pursuant to regulations promulgated by it, to modify any agreement or order for the purpose of extending the time for payment of sums due under such agreement or order, and shall also have the power to set aside and declare null and void any such agreement if, upon a request made to the Board within three years from the date of such agreement, the Board finds as a fact that the aggregate of the amounts received or accrued by the other party to such agreement during the fiscal year covered by such agreement was not more than the minimum amounts subject to renegotiation specified in section

105 (f) [subsection (f) of this section] for such fiscal year.

(e) Information available to Board.

(1) Furnishing of financial statements, etc.

Every person who holds contracts or subcontracts, to which the provisions of this title [sections 1211 to 1224 of this Appendix] are applicable, shall, in such form and detail as the Board may by regulations prescribe, file with the Board, on or before the first day of the fifth calendar month following the close of his fiscal year, a financial statement setting forth such information as the Board may by regulations prescribe as necessary to carry out this title [sections 1211 to 1244 of this Appendix]. The preceding sentence shall not apply to any such person with respect to a fiscal year if the aggregate of the amounts received or accrued under such contracts and subcontracts during such fiscal year by him, and all persons under control of or controlling or under common control with him, is not more than the applicable amount prescribed in subsection (f) (1) or (2) of this section; but any person to whom this sentence applies may, if he so elects, file with the Board for such fiscal year a financial statement setting forth such information as the Board may by regulations prescribe as necessary to carry out this title [sections 1211 to 1224 of this Appendix]. Any person who, but for the provisions of section 106(e) (1) (A) [section 1216(e) (1) (A) of this Appendix], would not be relieved for a fiscal year from the filing requirements of the first sentence of this paragraph by reason of the preceding sentence shall furnish for such fiscal year such information with respect to the application of such provisions (and with respect to the aggregate specified in the preceding sentence) as the Board may by regulations prescribed as necessary to carry out this title [sections 1211 to 1224 of this Appendix]. The Board may require any person who holds contracts or subcontracts to which the provisions of this title [sections 1211 to 1224 of this Appendix] are applicable (whether or not such person has filed a financial statement under this paragraph) to furnish any information, records, or data which are determined by the Board to be necessary to carry out this title [sections 1211 to 1224 of this Appendix] and which the Board specifically requests such person to furnish. Such information, records, or data may not be required with respect to any fiscal year after the date on which all liabilities of such person for excessive profits received or accrued during such fiscal year are discharged. Any person who willfully fails or refuses to furnish any statement, information, records, or data required of him under this subsection, or who knowingly furnishes any statement, information, records, or data pursuant to this subsection containing information which is false or misleading in any material respect, shall, upon conviction thereof, be punished by a fine of not more than $10,000 or imprisonment for not more than one year, or both.

(2) Audit of books and records.

For the purpose of this title [sections 1211 to 1224 of this Appendix], the Board shall have the right to audit the books and records of any contractor or