[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4069 Referred in Senate (RFS)]
2d Session
H. R. 4069
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 15 (legislative day, May 9), 2002
Received; read twice and referred to the Committee on Finance
_______________________________________________________________________
AN ACT
To amend title II of the Social Security Act to provide for
miscellaneous enhancements in Social Security benefits, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Social Security
Benefit Enhancements for Women Act of 2002''.
(b) Table of Contents.--The table of contents is as follows:
Sec. 1. Short title and table of contents.
TITLE I--BENEFIT ENHANCEMENTS
Sec. 101. Repeal of 7-year restriction on eligibility for widow's and
widower's insurance benefits based on
disability.
Sec. 102. Exemption from two-year waiting period for divorced spouse's
benefits upon other spouse's remarriage.
Sec. 103. Months ending after deceased individual's death disregarded
in applying early retirement rules with
respect to deceased individual for purposes
of limitation on widow's and widower's
benefits.
TITLE II--AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986
Sec. 201. Exclusion from gross income for interest on overpayments of
income tax by individuals.
Sec. 202. Deposits made to suspend running of interest on potential
underpayments.
Sec. 203. Partial payment of tax liability in installment agreements.
TITLE I--BENEFIT ENHANCEMENTS
SEC. 101. REPEAL OF 7-YEAR RESTRICTION ON ELIGIBILITY FOR WIDOW'S AND
WIDOWER'S INSURANCE BENEFITS BASED ON DISABILITY.
(a) Widow's Insurance Benefits.--
(1) In general.--Section 202(e) of the Social Security Act
(42 U.S.C. 402(e)) is amended--
(A) in paragraph (1)(B)(ii), by striking ``which
began before the end of the period specified in
paragraph (4)'';
(B) in paragraph (1)(F)(ii), by striking ``(I) in
the period specified in paragraph (4) and (II)'';
(C) by striking paragraph (4) and by redesignating
paragraphs (5) through (9) as paragraphs (4) through
(8), respectively; and
(D) in paragraph (4)(A)(ii) (as redesignated), by
striking ``whichever'' and all that follows through
``begins'' and inserting ``the first day of the
seventeenth month before the month in which her
application is filed''.
(2) Conforming amendments.--
(A) Section 202(e)(1)(F)(i) of such Act (42 U.S.C.
402(e)(1)(F)(i)) is amended by striking ``paragraph
(5)'' and inserting ``paragraph (4)''.
(B) Section 202(e)(1)(C)(ii)(III) of such Act (42
U.S.C. 402(e)(2)(C)(ii)(III)) is amended by striking
``paragraph (8)'' and inserting ``paragraph (7)''.
(C) Section 202(e)(2)(A) of such Act (42 U.S.C.
402(e)(2)(A)) is amended by striking ``paragraph (7)''
and inserting ``paragraph (6)''.
(D) Section 226(e)(1)(A)(i) of such Act (42 U.S.C.
426(e)(1)(A)(i)) is amended by striking ``202(e)(4),''.
(b) Widower's Insurance Benefits.--
(1) In general.--Section 202(f) of such Act (42 U.S.C.
402(f)) is amended--
(A) in paragraph (1)(B)(ii), by striking ``which
began before the end of the period specified in
paragraph (5)'';
(B) in paragraph (1)(F)(ii), by striking ``(I) in
the period specified in paragraph (5) and (II)'';
(C) by striking paragraph (5) and by redesignating
paragraphs (6) through (9) as paragraphs (5) through
(8), respectively; and
(D) in paragraph (5)(A)(ii) (as redesignated), by
striking ``whichever'' and all that follows through
``begins'' and inserting ``the first day of the
seventeenth month before the month in which his
application is filed''.
(2) Conforming amendments.--
(A) Section 202(f)(1)(F)(i) of such Act (42 U.S.C.
402(f)(1)(F)(i)) is amended by striking ``paragraph
(6)'' and inserting ``paragraph (5)''.
(B) Section 202(f)(1)(C)(ii)(III) of such Act (42
U.S.C. 402(f)(2)(C)(ii)(III)) is amended by striking
``paragraph (8)'' and inserting ``paragraph (7)''.
(C) Section 226(e)(1)(A)(i) of such Act (as amended
by subsection (a)(2)) is further amended by striking
``202(f)(1)(B)(ii), and 202(f)(5)'' and inserting ``and
202(f)(1)(B)(ii)''.
(c) Effective Date.--The amendments made by this section shall
apply with respect to benefits for months after November 2002.
SEC. 102. EXEMPTION FROM TWO-YEAR WAITING PERIOD FOR DIVORCED SPOUSE'S
BENEFITS UPON OTHER SPOUSE'S REMARRIAGE.
(a) Wife's Insurance Benefits.--Section 202(b)(5)(A) of the Social
Security Act (42 U.S.C. 402(b)(5)(A)) is amended by adding at the end
the following new sentence: ``The criterion for entitlement under
clause (ii) shall be deemed met upon the remarriage of the insured
individual to someone other than the applicant during the 2-year period
referred to in such clause.''.
(b) Husband's Insurance Benefits.--Section 202(c)(5)(A) of such Act
(42 U.S.C. 402(c)(5)(A)) is amended by adding at the end the following
new sentence: ``The criterion for entitlement under clause (ii) shall
be deemed met upon the remarriage of the insured individual to someone
other than the applicant during the 2-year period referred to in such
clause.''.
(c) Conforming Amendment to Exemption of Insured Individual's
Divorced Spouse From Earnings Test as Applied to the Insured
Individual.--Section 203(b)(2)(B) of such Act (42 U.S.C. 403(b)(2)(B))
is amended by adding at the end the following new sentence: ``The
requirement under such clause (ii) shall be deemed met upon the
remarriage of the individual referred to in paragraph (1) to someone
other than the divorced spouse referred to in such clause during the 2-
year period referred to in such clause.''.
(d) Effective Date.--The amendments made by this section shall
apply with respect to benefits for months after November 2002.
SEC. 103. MONTHS ENDING AFTER DECEASED INDIVIDUAL'S DEATH DISREGARDED
IN APPLYING EARLY RETIREMENT RULES WITH RESPECT TO
DECEASED INDIVIDUAL FOR PURPOSES OF LIMITATION ON WIDOW'S
AND WIDOWER'S BENEFITS.
(a) Widow's Insurance Benefits.--Section 202(e)(2)(D)(i) of the
Social Security Act (42 U.S.C. 402(e)(2)(D)(i)) is amended by inserting
after ``applicable,'' the following: ``except that, in applying
paragraph (7) of subsection (q) for purposes of this clause, any month
ending with or after the date of the death of such deceased individual
shall be deemed to be excluded under such paragraph (in addition to
months otherwise excluded under such paragraph),''.
(b) Widower's Insurance Benefits.--Section 202(f)(3)(D)(i) of such
Act (42 U.S.C. 402(f)(3)(D)(i)) is amended by inserting after
``applicable,'' the following: ``except that, in applying paragraph (7)
of subsection (q) for purposes of this clause, any month ending with or
after the date of the death of such deceased individual shall be deemed
to be excluded under such paragraph (in addition to months otherwise
excluded under such paragraph),''.
(c) Effective Date.--The amendments made by this section shall
apply with respect to benefits for months after November 2002.
TITLE II--AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986
SEC. 201. EXCLUSION FROM GROSS INCOME FOR INTEREST ON OVERPAYMENTS OF
INCOME TAX BY INDIVIDUALS.
(a) In General.--Part III of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 (relating to items specifically excluded
from gross income) is amended by inserting after section 139 the
following new section:
``SEC. 139A. EXCLUSION FROM GROSS INCOME FOR INTEREST ON OVERPAYMENTS
OF INCOME TAX BY INDIVIDUALS.
``(a) In General.--In the case of an individual, gross income shall
not include interest paid under section 6611 on any overpayment of tax
imposed by this subtitle.
``(b) Exception.--Subsection (a) shall not apply in the case of a
failure to claim items resulting in the overpayment on the original
return if the Secretary determines that the principal purpose of such
failure is to take advantage of subsection (a).
``(c) Special Rule for Determining Modified Adjusted Gross
Income.--For purposes of this title, interest not included in gross
income under subsection (a) shall not be treated as interest which is
exempt from tax for purposes of sections 32(i)(2)(B) and 6012(d) or any
computation in which interest exempt from tax under this title is added
to adjusted gross income.''.
(b) Clerical Amendment.--The table of sections for part III of
subchapter B of chapter 1 of such Code is amended by inserting after
the item relating to section 139 the following new item:
``Sec. 139A. Exclusion from gross income
for interest on overpayments of
income tax by individuals.''.
(c) Effective Date.--The amendments made by this section shall
apply to interest received after December 31, 2006.
SEC. 202. DEPOSITS MADE TO SUSPEND RUNNING OF INTEREST ON POTENTIAL
UNDERPAYMENTS.
(a) In General.--Subchapter A of chapter 67 of the Internal Revenue
Code of 1986 (relating to interest on underpayments) is amended by
adding at the end the following new section:
``SEC. 6603. DEPOSITS MADE TO SUSPEND RUNNING OF INTEREST ON POTENTIAL
UNDERPAYMENTS, ETC.
``(a) Authority To Make Deposits Other Than As Payment of Tax.--A
taxpayer may make a cash deposit with the Secretary which may be used
by the Secretary to pay any tax imposed under subtitle A or B or
chapter 41, 42, 43, or 44 which has not been assessed at the time of
the deposit. Such a deposit shall be made in such manner as the
Secretary shall prescribe.
``(b) No Interest Imposed.--To the extent that such deposit is used
by the Secretary to pay tax, for purposes of section 6601 (relating to
interest on underpayments), the tax shall be treated as paid when the
deposit is made.
``(c) Return of Deposit.--Except in a case where the Secretary
determines that collection of tax is in jeopardy, the Secretary shall
return to the taxpayer any amount of the deposit (to the extent not
used for a payment of tax) which the taxpayer requests in writing.
``(d) Payment of Interest.--
``(1) In general.--For purposes of section 6611 (relating
to interest on overpayments), a deposit which is returned to a
taxpayer shall be treated as a payment of tax for any period to
the extent (and only to the extent) attributable to a
disputable tax for such period. Under regulations prescribed by
the Secretary, rules similar to the rules of section 6611(b)(2)
shall apply.
``(2) Disputable tax.--
``(A) In general.--For purposes of this section,
the term `disputable tax' means the amount of tax
specified at the time of the deposit as the taxpayer's
reasonable estimate of the maximum amount of any tax
attributable to disputable items.
``(B) Safe harbor based on 30-day letter.--In the
case of a taxpayer who has been issued a 30-day letter,
the maximum amount of tax under subparagraph (A) shall
not be less than the amount of the proposed deficiency
specified in such letter.
``(3) Other definitions.--For purposes of paragraph (2)--
``(A) Disputable item.--The term `disputable item'
means any item of income, gain, loss, deduction, or
credit if the taxpayer--
``(i) has a reasonable basis for its
treatment of such item, and
``(ii) reasonably believes that the
Secretary also has a reasonable basis for
disallowing the taxpayer's treatment of such
item.
``(B) 30-day letter.--The term `30-day letter'
means the first letter of proposed deficiency which
allows the taxpayer an opportunity for administrative
review in the Internal Revenue Service Office of
Appeals.
``(4) Rate of interest.--The rate of interest allowable
under this subsection shall be the Federal short-term rate
determined under section 6621(b), compounded daily.
``(e) Use of Deposits.--
``(1) Payment of tax.--Except as otherwise provided by the
taxpayer, deposits shall be treated as used for the payment of
tax in the order deposited.
``(2) Returns of deposits.--Deposits shall be treated as
returned to the taxpayer on a last-in, first-out basis.''.
(b) Clerical Amendment.--The table of sections for subchapter A of
chapter 67 of such Code is amended by adding at the end the following
new item:
``Sec. 6603. Deposits made to suspend
running of interest on
potential underpayments,
etc.''.
(c) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to deposits made after the date of the enactment of this
Act.
(2) Coordination with deposits made under revenue procedure
84-58.--In the case of an amount held by the Secretary of the
Treasury or his delegate on the date of the enactment of this
Act as a deposit in the nature of a cash bond deposit pursuant
to Revenue Procedure 84-58, the date that the taxpayer
identifies such amount as a deposit made pursuant to section
6603 of the Internal Revenue Code (as added by this Act) shall
be treated as the date such amount is deposited for purposes of
such section 6603.
SEC. 203. PARTIAL PAYMENT OF TAX LIABILITY IN INSTALLMENT AGREEMENTS.
(a) In General.--
(1) Section 6159(a) of the Internal Revenue Code of 1986
(relating to authorization of agreements) is amended--
(A) by striking ``satisfy liability for payment
of'' and inserting ``make payment on'', and
(B) by inserting ``full or partial'' after
``facilitate''.
(2) Section 6159(c) of such Code (relating to Secretary
required to enter into installment agreements in certain cases)
is amended in the matter preceding paragraph (1) by inserting
``full'' before ``payment''.
(b) Requirement To Review Partial Payment Agreements Every Two
Years.--Section 6159 of such Code is amended by redesignating
subsections (d) and (e) as subsections (e) and (f), respectively, and
inserting after subsection (c) the following new subsection:
``(d) Secretary Required To Review Installment Agreements for
Partial Collection Every Two Years.--In the case of an agreement
entered into by the Secretary under subsection (a) for partial
collection of a tax liability, the Secretary shall review the agreement
at least once every 2 years.''.
(c) Effective Date.--The amendments made by this section shall
apply to agreements entered into on or after the date of the enactment
of this Act.
Passed the House of Representatives May 14, 2002.
Attest:
JEFF TRANDAHL,
Clerk.