[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5557 Engrossed Amendment Senate (EAS)]
In the Senate of the United States,
November 14, 2002.
Resolved, That the bill from the House of Representatives (H.R.
5557) entitled ``An Act to amend the Internal Revenue Code of 1986 to
provide a special rule for members of the uniformed services and
Foreign Service in determining the exclusion of gain from the sale of a
principal residence and to restore the tax exempt status of death
gratuity payments to members of the uniformed services, and for other
purposes.'', do pass with the following
AMENDMENT:
Page 10, strike out line 10 and insert:
SEC. 8. CLARIFICATION RELATING TO EXCEPTION FROM ADDITIONAL TAX ON
CERTAIN DISTRIBUTIONS FROM QUALIFIED TUITION PROGRAMS,
ETC. ON ACCOUNT OF ATTENDANCE AT MILITARY ACADEMY.
(a) In General.--Subparagraph (B) of section 530(d)(4) of the
Internal Revenue Code of 1986 (relating to exceptions from additional
tax for distributions not used for educational purposes) is amended by
striking ``or'' at the end of clause (iii), by redesignating clause
(iv) as clause (v), and by inserting after clause (iii) the following
new clause:
``(iv) made on account of the attendance of
the account holder at the United States
Military Academy, the United States Naval
Academy, the United States Air Force Academy,
the United States Coast Guard Academy, or the
United States Merchant Marine Academy, to the
extent that the amount of the payment or
distribution does not exceed the costs of
advanced education (as defined by section
2005(e)(3) of title 10, United States Code, as
in effect on the date of the enactment of this
section) attributable to such attendance, or''.
(b) Effective Date.--The amendment made by this section shall take
effect for taxable years beginning after December 31, 2002.
SEC. 9. SUSPENSION OF TAX-EXEMPT STATUS OF DESIGNATED TERRORIST
ORGANIZATIONS.
(a) In General.--Section 501 of the Internal Revenue Code of 1986
(relating to exemption from tax on corporations, certain trusts, etc.)
is amended by redesignating subsection (p) as subsection (q) and by
inserting after subsection (o) the following new subsection:
``(p) Suspension of Tax-Exempt Status of Designated Terrorist
Organizations.--
``(1) In general.--The exemption from tax under subsection
(a) with respect to any organization shall be suspended during
any period in which the organization is a designated terrorist
organization.
``(2) Designated terrorist organization.--For purposes of
this subsection, the term `designated terrorist organization'
means an organization which--
``(A) is designated as a terrorist organization in
or pursuant to an Executive order, or otherwise
designated, under the authority of--
``(i) section 212(a)(3) or 219 of the
Immigration and Nationality Act,
``(ii) the International Emergency Economic
Powers Act, or
``(iii) section 5 of the United Nations
Participation Act, or
``(B) is designated in or pursuant to an Executive
order as supporting terrorist activity (as defined in
section 212(a)(3)(B) of the Immigration and Nationality
Act) or terrorism (as defined in section 140(d)(2) of
the Foreign Relations Authorization Act, Fiscal Years
1988 and 1989).
``(3) Denial of deduction.--No deduction shall be allowed
under section 170, 545(b)(2), 556(b)(2), 642(c), 2055,
2106(a)(2), or 2522 for any contribution to an organization
during the period such organization is a designated terrorist
organization.
``(4) Denial of administrative or judicial challenge of
suspension or denial of deduction.--Notwithstanding section
7428 or any other provision of law, no organization or other
person may challenge a suspension under paragraph (1), a
designation described in paragraph (2), or a denial of a
deduction under paragraph (3) in any administrative or judicial
proceeding relating to the Federal tax liability of such
organization or other person.
``(5) Credit or refund in case of erroneous designation.--
``(A) In general.--If a designation of an
organization pursuant to 1 or more of the provisions of
law described in paragraph (2) is determined to be
erroneous pursuant to such law and the erroneous
designation results in an overpayment of income tax for
any taxable year with respect to such organization,
credit or refund (with interest) with respect to such
overpayment shall be made.
``(B) Waiver of limitations.--If credit or refund
of any overpayment of tax described in subparagraph (A)
is prevented at any time before the close of the 1-year
period beginning on the date of the determination of
such credit or refund by the operation of any law or
rule of law (including res judicata), such refund or
credit may nevertheless be made or allowed if claim
therefor is filed before the close of such period.''.
(b) Notice of Suspensions.--If the tax exemption of any
organization is suspended under section 501(p) of the Internal Revenue
Code of 1986 (as added by subsection (a)), the Internal Revenue Service
shall update the listings of tax-exempt organizations and shall publish
appropriate notice to taxpayers of such suspension and of the fact that
contributions to such organization are not deductible during the period
of such suspension.
(c) Effective Date.--The amendments made by this section shall take
effect on the date of the enactment of this Act.
SEC. 10. ABOVE-THE-LINE DEDUCTION FOR OVERNIGHT TRAVEL EXPENSES OF
NATIONAL GUARD AND RESERVE MEMBERS.
(a) Deduction Allowed.--Section 162 of the Internal Revenue Code of
1986 (relating to certain trade or business expenses) is amended by
redesignating subsection (p) as subsection (q) and inserting after
subsection (o) the following new subsection:
``(p) Treatment of Expenses of Members of Reserve Component of
Armed Forces of the United States.--For purposes of subsection (a)(2),
in the case of an individual who performs services as a member of a
reserve component of the Armed Forces of the United States at any time
during the taxable year, such individual shall be deemed to be away
from home in the pursuit of a trade or business for any period during
which such individual is away from home in connection with such
services.''.
(b) Deduction Allowed Whether or Not Taxpayer Elects To Itemize.--
Section 62(a)(2) (relating to certain trade and business deductions of
employees) is amended by adding at the end the following new
subparagraph:
``(E) Certain expenses of members of reserve
components of the armed forces of the united states.--
The deductions allowed by section 162 which consist of
expenses, not in excess of $1,500, paid or incurred by
the taxpayer in connection with the performance of
services by such taxpayer as a member of a reserve
component of the Armed Forces of the United States for
any period during which such individual is more than
100 miles away from home in connection with such
services.''.
(c) Effective Date.--The amendments made by this section shall
apply to amounts paid or incurred in taxable years beginning after
December 31, 2002.
SEC. 11. EXTENSION OF INTERNAL REVENUE SERVICE USER FEES.
(a) In General.--Chapter 77 of the Internal Revenue Code of 1986
(relating to miscellaneous provisions) is amended by adding at the end
the following new section:
``SEC. 7527. INTERNAL REVENUE SERVICE USER FEES.
``(a) General Rule.--The Secretary shall establish a program
requiring the payment of user fees for--
``(1) requests to the Internal Revenue Service for ruling
letters, opinion letters, and determination letters, and
``(2) other similar requests.
``(b) Program Criteria.--
``(1) In general.--The fees charged under the program
required by subsection (a)--
``(A) shall vary according to categories (or
subcategories) established by the Secretary,
``(B) shall be determined after taking into account
the average time for (and difficulty of) complying with
requests in each category (and subcategory), and
``(C) shall be payable in advance.
``(2) Exemptions, etc.--
``(A) In general.--The Secretary shall provide for
such exemptions (and reduced fees) under such program
as the Secretary determines to be appropriate.
``(B) Exemption for certain requests regarding
pension plans.--The Secretary shall not require payment
of user fees under such program for requests for
determination letters with respect to the qualified
status of a pension benefit plan maintained solely by 1
or more eligible employers or any trust which is part
of the plan. The preceding sentence shall not apply to
any request--
``(i) made after the later of--
``(I) the fifth plan year the
pension benefit plan is in existence,
or
``(II) the end of any remedial
amendment period with respect to the
plan beginning within the first 5 plan
years, or
``(ii) made by the sponsor of any prototype
or similar plan which the sponsor intends to
market to participating employers.
``(C) Definitions and special rules.--For purposes
of subparagraph (B)--
``(i) Pension benefit plan.--The term
`pension benefit plan' means a pension, profit-
sharing, stock bonus, annuity, or employee
stock ownership plan.
``(ii) Eligible employer.--The term
`eligible employer' means an eligible employer
(as defined in section 408(p)(2)(C)(i)(I))
which has at least 1 employee who is not a
highly compensated employee (as defined in
section 414(q)) and is participating in the
plan. The determination of whether an employer
is an eligible employer under subparagraph (B)
shall be made as of the date of the request
described in such subparagraph.
``(iii) Determination of average fees
charged.--For purposes of any determination of
average fees charged, any request to which
subparagraph (B) applies shall not be taken
into account.
``(3) Average fee requirement.--The average fee charged
under the program required by subsection (a) shall not be less
than the amount determined under the following table:
Average
``Category Fee
Employee plan ruling and opinion.............. $250
Exempt organization ruling.................... $350
Employee plan determination................... $300
Exempt organization determination............. $275
Chief counsel ruling.......................... $200.
``(c) Termination.--No fee shall be imposed under this section with
respect to requests made after September 30, 2012.''.
(b) Conforming Amendments.--
(1) The table of sections for chapter 77 of the Internal
Revenue Code of 1986 is amended by adding at the end the
following new item:
``Sec. 7527. Internal Revenue Service
user fees.''.
(2) Section 10511 of the Revenue Act of 1987 is repealed.
(3) Section 620 of the Economic Growth and Tax Relief
Reconciliation Act of 2001 is repealed.
(c) Limitations.--Notwithstanding any other provision of law, any
fees collected pursuant to section 7527 of the Internal Revenue Code of
1986, as added by subsection (a), shall not be expended by the Internal
Revenue Service unless provided by an appropriations Act.
(d) Effective Date.--The amendments made by this section shall
apply to requests made after the date of the enactment of this Act.
SEC. 12. 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 the Internal Revenue Code of 1986 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.
SEC. 13. PROTECTION OF SOCIAL SECURITY.
Attest:
Secretary.
107th CONGRESS
2d Session
H. R. 5557
_______________________________________________________________________
AMENDMENT