Text: H.R.5557 — 107th Congress (2001-2002)All Information (Except Text)

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Engrossed Amendment Senate (11/14/2002)

 
[Congressional Bills 107th Congress]
[From the U.S. Government Printing 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