Text: H.R.647 — 113th Congress (2013-2014)All Bill Information (Except Text)

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Engrossed in House (12/03/2014)

 
[Congressional Bills 113th Congress]
[From the U.S. Government Printing Office]
[H.R. 647 Engrossed in House (EH)]

113th CONGRESS
  2d Session
                                H. R. 647

_______________________________________________________________________

                                 AN ACT


 
   To amend the Internal Revenue Code of 1986 to provide for the tax 
  treatment of ABLE accounts established under State programs for the 
   care of family members with disabilities, 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; ETC.

    (a) Short Title.--This Act may be cited as the ``Achieving a Better 
Life Experience Act of 2014'' or the ``ABLE Act of 2014''.
    (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this Act an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of the Internal Revenue Code of 1986.
    (c) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; etc.
                    TITLE I--QUALIFIED ABLE PROGRAMS

Sec. 101. Purposes.
Sec. 102. Qualified ABLE programs.
Sec. 103. Treatment of ABLE accounts under certain Federal programs.
Sec. 104. Treatment of able accounts in bankruptcy.
Sec. 105. Investment direction rule for 529 plans.
                           TITLE II--OFFSETS

Sec. 201. Correction to workers compensation offset age.
Sec. 202. Accelerated application of relative value targets for 
                            misvalued services in the Medicare 
                            physician fee schedule.
Sec. 203. Consistent treatment of vacuum erection systems in Medicare 
                            Parts B and D.
Sec. 204. One-year delay of implementation of oral-only policy under 
                            Medicare ESRD prospective payment system.
Sec. 205. Modification relating to Inland Waterways Trust Fund 
                            financing rate.
Sec. 206. Certified professional employer organizations.
Sec. 207. Exclusion of dividends from controlled foreign corporations 
                            from the definition of personal holding 
                            company income for purposes of the personal 
                            holding company rules.
Sec. 208. Inflation adjustment for certain civil penalties under the 
                            Internal Revenue Code of 1986.
Sec. 209. Increase in continuous levy.

                    TITLE I--QUALIFIED ABLE PROGRAMS

SEC. 101. PURPOSES.

    The purposes of this title are as follows:
            (1) To encourage and assist individuals and families in 
        saving private funds for the purpose of supporting individuals 
        with disabilities to maintain health, independence, and quality 
        of life.
            (2) To provide secure funding for disability-related 
        expenses on behalf of designated beneficiaries with 
        disabilities that will supplement, but not supplant, benefits 
        provided through private insurance, the Medicaid program under 
        title XIX of the Social Security Act, the supplemental security 
        income program under title XVI of such Act, the beneficiary's 
        employment, and other sources.

SEC. 102. QUALIFIED ABLE PROGRAMS.

    (a) In General.--Subchapter F of chapter 1 is amended by inserting 
after section 529 the following new section:

``SEC. 529A. QUALIFIED ABLE PROGRAMS.

    ``(a) General Rule.--A qualified ABLE program shall be exempt from 
taxation under this subtitle. Notwithstanding the preceding sentence, 
such program shall be subject to the taxes imposed by section 511 
(relating to imposition of tax on unrelated business income of 
charitable organizations).
    ``(b) Qualified ABLE Program.--For purposes of this section--
            ``(1) In general.--The term `qualified ABLE program' means 
        a program established and maintained by a State, or agency or 
        instrumentality thereof--
                    ``(A) under which a person may make contributions 
                for a taxable year, for the benefit of an individual 
                who is an eligible individual for such taxable year, to 
                an ABLE account which is established for the purpose of 
                meeting the qualified disability expenses of the 
                designated beneficiary of the account,
                    ``(B) which limits a designated beneficiary to 1 
                ABLE account for purposes of this section,
                    ``(C) which allows for the establishment of an ABLE 
                account only for a designated beneficiary who is a 
                resident of such State or a resident of a contracting 
                State, and
                    ``(D) which meets the other requirements of this 
                section.
            ``(2) Cash contributions.--A program shall not be treated 
        as a qualified ABLE program unless it provides that no 
        contribution will be accepted--
                    ``(A) unless it is in cash, or
                    ``(B) except in the case of contributions under 
                subsection (c)(1)(C), if such contribution to an ABLE 
                account would result in aggregate contributions from 
                all contributors to the ABLE account for the taxable 
                year exceeding the amount in effect under section 
                2503(b) for the calendar year in which the taxable year 
                begins.
        For purposes of this paragraph, rules similar to the rules of 
        section 408(d)(4) (determined without regard to subparagraph 
        (B) thereof) shall apply.
            ``(3) Separate accounting.--A program shall not be treated 
        as a qualified ABLE program unless it provides separate 
        accounting for each designated beneficiary.
            ``(4) Limited investment direction.--A program shall not be 
        treated as a qualified ABLE program unless it provides that any 
        designated beneficiary under such program may, directly or 
        indirectly, direct the investment of any contributions to the 
        program (or any earnings thereon) no more than 2 times in any 
        calendar year.
            ``(5) No pledging of interest as security.--A program shall 
        not be treated as a qualified ABLE program if it allows any 
        interest in the program or any portion thereof to be used as 
        security for a loan.
            ``(6) Prohibition on excess contributions.--A program shall 
        not be treated as a qualified ABLE program unless it provides 
        adequate safeguards to prevent aggregate contributions on 
        behalf of a designated beneficiary in excess of the limit 
        established by the State under section 529(b)(6). For purposes 
        of the preceding sentence, aggregate contributions include 
        contributions under any prior qualified ABLE program of any 
        State or agency or instrumentality thereof.
    ``(c) Tax Treatment.--
            ``(1) Distributions.--
                    ``(A) In general.--Any distribution under a 
                qualified ABLE program shall be includible in the gross 
                income of the distributee in the manner as provided 
                under section 72 to the extent not excluded from gross 
                income under any other provision of this chapter.
                    ``(B) Distributions for qualified disability 
                expenses.--For purposes of this paragraph, if 
                distributions from a qualified ABLE program--
                            ``(i) do not exceed the qualified 
                        disability expenses of the designated 
                        beneficiary, no amount shall be includible in 
                        gross income, and
                            ``(ii) in any other case, the amount 
                        otherwise includible in gross income shall be 
                        reduced by an amount which bears the same ratio 
                        to such amount as such expenses bear to such 
                        distributions.
                    ``(C) Change in designated beneficiaries or 
                programs.--
                            ``(i) Rollovers from able accounts.--
                        Subparagraph (A) shall not apply to any amount 
                        paid or distributed from an ABLE account to the 
                        extent that the amount received is paid, not 
                        later than the 60th day after the date of such 
                        payment or distribution, into another ABLE 
                        account for the benefit of the same designated 
                        beneficiary or an eligible individual who is a 
                        family member of the designated beneficiary.
                            ``(ii) Change in designated 
                        beneficiaries.--Any change in the designated 
                        beneficiary of an interest in a qualified ABLE 
                        program during a taxable year shall not be 
                        treated as a distribution for purposes of 
                        subparagraph (A) if the new beneficiary is an 
                        eligible individual for such taxable year and a 
                        member of the family of the former beneficiary.
                            ``(iii) Limitation on certain rollovers.--
                        Clause (i) shall not apply to any transfer if 
                        such transfer occurs within 12 months from the 
                        date of a previous transfer to any qualified 
                        ABLE program for the benefit of the designated 
                        beneficiary.
                    ``(D) Operating rules.--For purposes of applying 
                section 72--
                            ``(i) except to the extent provided by the 
                        Secretary, all distributions during a taxable 
                        year shall be treated as one distribution, and
                            ``(ii) except to the extent provided by the 
                        Secretary, the value of the contract, income on 
                        the contract, and investment in the contract 
                        shall be computed as of the close of the 
                        calendar year in which the taxable year begins.
            ``(2) Gift tax rules.--For purposes of chapters 12 and 13--
                    ``(A) Contributions.--Any contribution to a 
                qualified ABLE program on behalf of any designated 
                beneficiary--
                            ``(i) shall be treated as a completed gift 
                        to such designated beneficiary which is not a 
                        future interest in property, and
                            ``(ii) shall not be treated as a qualified 
                        transfer under section 2503(e).
                    ``(B) Treatment of distributions.--In no event 
                shall a distribution from an ABLE account to such 
                account's designated beneficiary be treated as a 
                taxable gift.
                    ``(C) Treatment of transfer to new designated 
                beneficiary.--The taxes imposed by chapters 12 and 13 
                shall not apply to a transfer by reason of a change in 
                the designated beneficiary under subsection (c)(1)(C).
            ``(3) Additional tax for distributions not used for 
        disability expenses.--
                    ``(A) In general.--The tax imposed by this chapter 
                for any taxable year on any taxpayer who receives a 
                distribution from a qualified ABLE program which is 
                includible in gross income shall be increased by 10 
                percent of the amount which is so includible.
                    ``(B) Exception.--Subparagraph (A) shall not apply 
                if the payment or distribution is made to a beneficiary 
                (or to the estate of the designated beneficiary) on or 
                after the death of the designated beneficiary.
                    ``(C) Contributions returned before certain date.--
                Subparagraph (A) shall not apply to the distribution of 
                any contribution made during a taxable year on behalf 
                of the designated beneficiary if--
                            ``(i) such distribution is received on or 
                        before the day prescribed by law (including 
                        extensions of time) for filing such designated 
                        beneficiary's return for such taxable year, and
                            ``(ii) such distribution is accompanied by 
                        the amount of net income attributable to such 
                        excess contribution.
                Any net income described in clause (ii) shall be 
                included in gross income for the taxable year in which 
                such excess contribution was made.
            ``(4) Loss of able account treatment.--If an ABLE account 
        is established for a designated beneficiary, no account 
        subsequently established for such beneficiary shall be treated 
        as an ABLE account. The preceding sentence shall not apply in 
        the case of an account established for purposes of a rollover 
        described in paragraph (1)(C)(i) of this section if the 
        transferor account is closed as of the end of the 60th day 
        referred to in paragraph (1)(C)(i).
    ``(d) Reports.--
            ``(1) In general.--Each officer or employee having control 
        of the qualified ABLE program or their designee shall make such 
        reports regarding such program to the Secretary and to 
        designated beneficiaries with respect to contributions, 
        distributions, the return of excess contributions, and such 
        other matters as the Secretary may require.
            ``(2) Certain aggregated information.--For research 
        purposes, the Secretary shall make available to the public 
        reports containing aggregate information, by diagnosis and 
        other relevant characteristics, on contributions and 
        distributions from the qualified ABLE program. In carrying out 
        the preceding sentence an item may not be made available to the 
        public if such item can be associated with, or otherwise 
        identify, directly or indirectly, a particular individual.
            ``(3) Notice of establishment of able account.--A qualified 
        ABLE program shall submit a notice to the Secretary upon the 
        establishment of an ABLE account. Such notice shall contain the 
        name and State of residence of the designated beneficiary and 
        such other information as the Secretary may require.
            ``(4) Electronic distribution statements.--For purposes of 
        section 4 of the Achieving a Better Life Experience Act of 
        2014, States shall submit electronically on a monthly basis to 
        the Commissioner of Social Security, in the manner specified by 
        the Commissioner, statements on relevant distributions and 
        account balances from all ABLE accounts.
            ``(5) Requirements.--The reports and notices required by 
        paragraphs (1), (2), and (3) shall be filed at such time and in 
        such manner and furnished to such individuals at such time and 
        in such manner as may be required by the Secretary.
    ``(e) Other Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Eligible individual.--An individual is an eligible 
        individual for a taxable year if during such taxable year--
                    ``(A) the individual is entitled to benefits based 
                on blindness or disability under title II or XVI of the 
                Social Security Act, and such blindness or disability 
                occurred before the date on which the individual 
                attained age 26, or
                    ``(B) a disability certification with respect to 
                such individual is filed with the Secretary for such 
                taxable year.
            ``(2) Disability certification.--
                    ``(A) In general.--The term `disability 
                certification' means, with respect to an individual, a 
                certification to the satisfaction of the Secretary by 
                the individual or the parent or guardian of the 
                individual that--
                            ``(i) certifies that--
                                    ``(I) the individual has a 
                                medically determinable physical or 
                                mental impairment, which results in 
                                marked and severe functional 
                                limitations, and which can be expected 
                                to result in death or which has lasted 
                                or can be expected to last for a 
                                continuous period of not less than 12 
                                months, or is blind (within the meaning 
                                of section 1614(a)(2) of the Social 
                                Security Act), and
                                    ``(II) such blindness or disability 
                                occurred before the date on which the 
                                individual attained age 26, and
                            ``(ii) includes a copy of the individual's 
                        diagnosis relating to the individual's relevant 
                        impairment or impairments, signed by a 
                        physician meeting the criteria of section 
                        1861(r)(1) of the Social Security Act.
                    ``(B) Restriction on use of certification.--No 
                inference may be drawn from a disability certification 
                for purposes of establishing eligibility for benefits 
                under title II, XVI, or XIX of the Social Security Act.
            ``(3) Designated beneficiary.--The term `designated 
        beneficiary' in connection with an ABLE account established 
        under a qualified ABLE program means the eligible individual 
        who established an ABLE account and is the owner of such 
        account.
            ``(4) Member of family.--The term `member of the family' 
        means, with respect to any designated beneficiary, an 
        individual who bears a relationship to such beneficiary which 
        is described in subparagraph section 152(d)(2)(B). For purposes 
        of the preceding sentence, a rule similar to the rule of 
        section 152(f)(1)(B) shall apply.
            ``(5) Qualified disability expenses.--The term `qualified 
        disability expenses' means any expenses related to the eligible 
        individual's blindness or disability which are made for the 
        benefit of an eligible individual who is the designated 
        beneficiary, including the following expenses: education, 
        housing, transportation, employment training and support, 
        assistive technology and personal support services, health, 
        prevention and wellness, financial management and 
        administrative services, legal fees, expenses for oversight and 
        monitoring, funeral and burial expenses, and other expenses, 
        which are approved by the Secretary under regulations and 
        consistent with the purposes of this section.
            ``(6) ABLE account.--The term `ABLE account' means an 
        account established by an eligible individual, owned by such 
        eligible individual, and maintained under a qualified ABLE 
        program.
            ``(7) Contracting state.--The term `contracting State' 
        means a State without a qualified ABLE program which has 
        entered into a contract with a State with a qualified ABLE 
        program to provide residents of the contracting State access to 
        a qualified ABLE program.
    ``(f) Transfer to State.--Subject to any outstanding payments due 
for qualified disability expenses, upon the death of the designated 
beneficiary, all amounts remaining in the qualified ABLE account not in 
excess of the amount equal to the total medical assistance paid for the 
designated beneficiary after the establishment of the account, net of 
any premiums paid from the account or paid by or on behalf of the 
beneficiary to a Medicaid Buy-In program under any State Medicaid plan 
established under title XIX of the Social Security Act, shall be 
distributed to such State upon filing of a claim for payment by such 
State. For purposes of this paragraph, the State shall be a creditor of 
an ABLE account and not a beneficiary. Subsection (c)(3) shall not 
apply to a distribution under the preceding sentence.
    ``(g) Regulations.--The Secretary shall prescribe such regulations 
or other guidance as the Secretary determines necessary or appropriate 
to carry out the purposes of this section, including regulations--
            ``(1) to enforce the 1 ABLE account per eligible individual 
        limit,
            ``(2) providing for the information required to be 
        presented to open an ABLE account,
            ``(3) to generally define qualified disability expenses,
            ``(4) developed in consultation with the Commissioner of 
        Social Security, relating to disability certifications and 
        determinations of disability, including those conditions deemed 
        to meet the requirements of subsection (e)(1)(B),
            ``(5) to prevent fraud and abuse with respect to amounts 
        claimed as qualified disability expenses,
            ``(6) under chapters 11, 12, and 13 of this title, and
            ``(7) to allow for transfers from one ABLE account to 
        another ABLE account.''.
    (b) Tax on Excess Contributions.--
            (1) In general.--Subsection (a) of section 4973 (relating 
        to tax on excess contributions to certain tax-favored accounts 
        and annuities) is amended by striking ``or'' at the end of 
        paragraph (4), by inserting ``or'' at the end of paragraph (5), 
        and by inserting after paragraph (5) the following new 
        paragraph:
            ``(6) an ABLE account (within the meaning of section 
        529A),''.
            (2) Excess contribution.--Section 4973 is amended by adding 
        at the end the following new subsection:
    ``(h) Excess Contributions to ABLE Account.--For purposes of this 
section--
            ``(1) In general.--In the case of an ABLE account (within 
        the meaning of section 529A), the term `excess contributions' 
        means the amount by which the amount contributed for the 
        taxable year to such account (other than contributions under 
        section 529A(c)(1)(C)) exceeds the contribution limit under 
        section 529A(b)(2)(B).
            ``(2) Special rule.--For purposes of this subsection, any 
        contribution which is distributed out of the ABLE account in a 
        distribution to which the last sentence of section 529A(b)(2) 
        applies shall be treated as an amount not contributed.''.
    (c) Penalty for Failure to File Reports.--Section 6693(a)(2) is 
amended by striking ``and'' at the end of subparagraph (D), by 
redesignating subparagraph (E) as subparagraph (F), and by inserting 
after subparagraph (D) the following:
                    ``(E) section 529A(d) (relating to qualified ABLE 
                programs), and''.
    (d) Records.--Section 552a(a)(8)(B) of title 5, United States Code, 
is amended--
            (1) in clause (viii), by striking ``or'' at the end;
            (2) in clause (ix), by adding ``or'' at the end; and
            (3) by adding at the end the following new clause:
                            ``(x) matches performed pursuant to section 
                        3(d)(4) of the Achieving a Better Life 
                        Experience Act of 2014;''.
    (e) Other Conforming Amendments.--
            (1) Section 26(b)(2) is amended by striking ``and'' at the 
        end of subparagraph (W), by striking the period at the end of 
        subparagraph (X) and inserting ``, and'', and by inserting 
        after subparagraph (X) the following:
                    ``(Y) section 529A(c)(3)(A) (relating to additional 
                tax on ABLE account distributions not used for 
                qualified disability expenses).''.
            (2) Section 877A is amended--
                    (A) in subsection (e)(2) by inserting ``a qualified 
                ABLE program (as defined in section 529A),'' after 
                ``529),'', and
                    (B) in subsection (g)(6) by inserting 
                ``529A(c)(3),'' after ``529(c)(6),''.
            (3) Section 4965(c) is amended by striking ``or'' at the 
        end of paragraph (6), by striking the period at the end of 
        paragraph (7) and inserting ``, or'', and by inserting after 
        paragraph (7) the following new paragraph:
            ``(8) a program described in section 529A.''.
            (4) The heading for part VIII of subchapter F of chapter 1 
        is amended by striking ``higher education'' and inserting 
        ``certain''.
            (5) The item in the table of parts for subchapter F of 
        chapter 1 relating to part VIII is amended to read as follows:

               ``Part VIII. Certain Savings Entities.''.

            (6) The table of sections for part VIII of subchapter F of 
        chapter 1 is amended by inserting after the item relating to 
        section 529 the following new item:

``Sec. 529A. Qualified ABLE programs.''.
            (7) Paragraph (4) of section 1027(g) of the Consumer 
        Financial Protection Act of 2010 (12 U.S.C. 5517(g)(4)) is 
        amended by inserting ``, 529A'' after ``529''.
    (f) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to taxable years beginning after December 31, 2014.
            (2) Regulations.--The Secretary of the Treasury (or the 
        Secretary's designee) shall promulgate the regulations or other 
        guidance required under section 529A(g) of the Internal Revenue 
        Code of 1986, as added by subsection (a), not later than 6 
        months after the date of the enactment of this Act.

SEC. 103. TREATMENT OF ABLE ACCOUNTS UNDER CERTAIN FEDERAL PROGRAMS.

    (a) Account Funds Disregarded for Purposes of Certain Other Means-
Tested Federal Programs.--Notwithstanding any other provision of 
Federal law that requires consideration of 1 or more financial 
circumstances of an individual, for the purpose of determining 
eligibility to receive, or the amount of, any assistance or benefit 
authorized by such provision to be provided to or for the benefit of 
such individual, any amount (including earnings thereon) in the ABLE 
account (within the meaning of section 529A of the Internal Revenue 
Code of 1986) of such individual, any contributions to the ABLE account 
of the individual, and any distribution for qualified disability 
expenses (as defined in subsection (e)(5) of such section) shall be 
disregarded for such purpose with respect to any period during which 
such individual maintains, makes contributions to, or receives 
distributions from such ABLE account, except that, in the case of the 
supplemental security income program under title XVI of the Social 
Security Act--
            (1) a distribution for housing expenses (within the meaning 
        of such subsection) shall not be so disregarded, and
            (2) in the case of such program, any amount (including such 
        earnings) in such ABLE account shall be considered a resource 
        of the designated beneficiary to the extent that such amount 
        exceeds $100,000.
    (b) Suspension of SSI Benefits During Periods of Excessive Account 
Funds.--
            (1) In general.--The benefits of an individual under the 
        supplemental security income program under title XVI of the 
        Social Security Act shall not be terminated, but shall be 
        suspended, by reason of excess resources of the individual 
        attributable to an amount in the ABLE account (within the 
        meaning of section 529A of the Internal Revenue Code of 1986) 
        of the individual not disregarded under subsection (a) of this 
        section.
            (2) No impact on medicaid eligibility.--An individual who 
        would be receiving payment of such supplemental security income 
        benefits but for the application of paragraph (1) shall be 
        treated for purposes of title XIX of the Social Security Act as 
        if the individual continued to be receiving payment of such 
        benefits.
    (c) Effective Date.--This section shall take effect on the date of 
the enactment of this Act.

SEC. 104. TREATMENT OF ABLE ACCOUNTS IN BANKRUPTCY.

    (a) Exclusion From Property of the Estate.--Section 541(b) of the 
title 11, United States Code, is amended--
            (1) in paragraph (8), by striking ``or'' at the end;
            (2) in paragraph (9), by striking the period at the end and 
        inserting a semicolon and ``or''; and
            (3) by inserting after paragraph (9) the following:
            ``(10) funds placed in an account of a qualified ABLE 
        program (as defined in section 529A(b) of the Internal Revenue 
        Code of 1986) not later than 365 days before the date of the 
        filing of the petition in a case under this title, but--
                    ``(A) only if the designated beneficiary of such 
                account was a child, stepchild, grandchild, or 
                stepgrandchild of the debtor for the taxable year for 
                which funds were placed in such account;
                    ``(B) only to the extent that such funds--
                            ``(i) are not pledged or promised to any 
                        entity in connection with any extension of 
                        credit; and
                            ``(ii) are not excess contributions (as 
                        described in section 4973(h) of the Internal 
                        Revenue Code of 1986); and
                    ``(C) in the case of funds placed in all such 
                accounts having the same designated beneficiary not 
                earlier than 720 days nor later than 365 days before 
                such date, only so much of such funds as does not 
                exceed $6,225.''.
    (b) Debtor's Monthly Expenses.--Section 707(b)(2)(A)(ii)(II) of 
title 11, United States Code, is amended by adding at the end ``Such 
monthly expenses may include, if applicable, contributions to an 
account of a qualified ABLE program to the extent such contributions 
are not excess contributions (as described in section 4973(h) of the 
Internal Revenue Code of 1986) and if the designated beneficiary of 
such account is a child, stepchild, grandchild, or stepgrandchild of 
the debtor.''.
    (c) Record of Debtor's Interest.--Section 521(c) of title 11, 
United States Code, is amended by inserting ``, an interest in an 
account in a qualified ABLE program (as defined in section 529A(b) of 
such Code,'' after ``Internal Revenue Code of 1986)''.
    (d) Effective Date.--The amendments made by this section shall 
apply with respect to cases commenced under title 11, United States 
Code, on or after the date of the enactment of this Act.

SEC. 105. INVESTMENT DIRECTION RULE FOR 529 PLANS.

    (a) Amendments Relating to Investment Direction Rule for 529 
Plans.--
            (1) Paragraph (4) of section 529(b) is amended by striking 
        ``may not directly or indirectly'' and all that follows and 
        inserting ``may, directly or indirectly, direct the investment 
        of any contributions to the program (or any earnings thereon) 
        no more than 2 times in any calendar year.''.
            (2) The heading of paragraph (4) of section 529(b)is 
        amended by striking ``No'' and inserting ``Limited''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2014.

                           TITLE II--OFFSETS

SEC. 201. CORRECTION TO WORKERS COMPENSATION OFFSET AGE.

    (a) Retirement Age.--Section 224(a) of the Social Security Act (42 
U.S.C. 424a(a)) is amended, in the matter preceding paragraph (1), by 
striking ``the age of 65'' and inserting ``retirement age (as defined 
in section 216(l)(1))''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to any individual who attains 65 years of age on or 
after the date that is 12 months after the date of the enactment of 
this Act.

SEC. 202. ACCELERATED APPLICATION OF RELATIVE VALUE TARGETS FOR 
              MISVALUED SERVICES IN THE MEDICARE PHYSICIAN FEE 
              SCHEDULE.

    Section 1848(c) of the Social Security Act (42 U.S.C. 1395w-4(c)) 
is amended--
            (1) in subclause (VIII) of paragraph (2)(B)(v), as added by 
        section 220(d)(2) of the Protecting Access to Medicare Act of 
        2014 (Public Law 113-93)--
                    (A) by striking ``2017'' and inserting ``2016''; 
                and
                    (B) by redesignating such subclause as subclause 
                (IX);
            (2) in paragraph (2)(O)--
                    (A) in the matter preceding clause (i), by striking 
                ``2017 through 2020'' and inserting ``2016 through 
                2018'';
                    (B) in clause (iii), by striking ``2017'' and 
                inserting ``2016''; and
                    (C) in clause (v), by inserting ``(or, for 2016, 
                1.0 percent)'' after ``0.5 percent''; and
            (3) in paragraph (7), by striking ``2017'' and inserting 
        ``2016''.

SEC. 203. CONSISTENT TREATMENT OF VACUUM ERECTION SYSTEMS IN MEDICARE 
              PARTS B AND D.

     Section 1834(a)(1) of the Social Security Act (42 U.S.C. 
1395m(a)(1)) is amended by adding at the end the following new 
subparagraph:
                    ``(I) Treatment of vacuum erection systems.--
                Effective for items and services furnished on and after 
                July 1, 2015, vacuum erection systems described as 
                prosthetic devices described in section 1861(s)(8) 
                shall be treated in the same manner as erectile 
                dysfunction drugs are treated for purposes of section 
                1860D-2(e)(2)(A).''.

SEC. 204. ONE-YEAR DELAY OF IMPLEMENTATION OF ORAL-ONLY POLICY UNDER 
              MEDICARE ESRD PROSPECTIVE PAYMENT SYSTEM.

    Section 632(b)(1) of the American Taxpayer Relief Act of 2012 (42 
U.S.C. 1395rr note), as amended by section 217(a)(1) of the Protecting 
Access to Medicare Act of 2014 (Public Law 113-93), is amended by 
striking ``2024'' and inserting ``2025''.

SEC. 205. MODIFICATION RELATING TO INLAND WATERWAYS TRUST FUND 
              FINANCING RATE.

    (a) In General.--Section 4042(b)(2)(A) is amended to read as 
follows:
                    ``(A) The Inland Waterways Trust Fund financing 
                rate is 29 cents per gallon.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to fuel used after March 31, 2015.

SEC. 206. CERTIFIED PROFESSIONAL EMPLOYER ORGANIZATIONS.

    (a) Employment Taxes.--Chapter 25 is amended by adding at the end 
the following new section:

``SEC. 3511. CERTIFIED PROFESSIONAL EMPLOYER ORGANIZATIONS.

    ``(a) General Rules.--For purposes of the taxes, and other 
obligations, imposed by this subtitle--
            ``(1) a certified professional employer organization shall 
        be treated as the employer (and no other person shall be 
        treated as the employer) of any work site employee performing 
        services for any customer of such organization, but only with 
        respect to remuneration remitted by such organization to such 
        work site employee, and
            ``(2) the exemptions, exclusions, definitions, and other 
        rules which are based on type of employer and which would (but 
        for paragraph (1)) apply shall apply with respect to such taxes 
        imposed on such remuneration.
    ``(b) Successor Employer Status.--For purposes of sections 
3121(a)(1), 3231(e)(2)(C), and 3306(b)(1)--
            ``(1) a certified professional employer organization 
        entering into a service contract with a customer with respect 
        to a work site employee shall be treated as a successor 
        employer and the customer shall be treated as a predecessor 
        employer during the term of such service contract, and
            ``(2) a customer whose service contract with a certified 
        professional employer organization is terminated with respect 
        to a work site employee shall be treated as a successor 
        employer and the certified professional employer organization 
        shall be treated as a predecessor employer.
    ``(c) Liability of Certified Professional Employer Organization.--
Solely for purposes of its liability for the taxes and other 
obligations imposed by this subtitle--
            ``(1) a certified professional employer organization shall 
        be treated as the employer of any individual (other than a work 
        site employee or a person described in subsection (f)) who is 
        performing services covered by a contract meeting the 
        requirements of section 7705(e)(2), but only with respect to 
        remuneration remitted by such organization to such individual, 
        and
            ``(2) the exemptions, exclusions, definitions, and other 
        rules which are based on type of employer and which would (but 
        for paragraph (1)) apply shall apply with respect to such taxes 
        imposed on such remuneration.
    ``(d) Treatment of Credits.--
            ``(1) In general.--For purposes of any credit specified in 
        paragraph (2)--
                    ``(A) such credit with respect to a work site 
                employee performing services for the customer applies 
                to the customer, not the certified professional 
                employer organization,
                    ``(B) the customer, and not the certified 
                professional employer organization, shall take into 
                account wages and employment taxes--
                            ``(i) paid by the certified professional 
                        employer organization with respect to the work 
                        site employee, and
                            ``(ii) for which the certified professional 
                        employer organization receives payment from the 
                        customer, and
                    ``(C) the certified professional employer 
                organization shall furnish the customer and the 
                Secretary with any information necessary for the 
                customer to claim such credit.
            ``(2) Credits specified.--A credit is specified in this 
        paragraph if such credit is allowed under--
                    ``(A) section 41 (credit for increasing research 
                activity),
                    ``(B) section 45A (Indian employment credit),
                    ``(C) section 45B (credit for portion of employer 
                social security taxes paid with respect to employee 
                cash tips),
                    ``(D) section 45C (clinical testing expenses for 
                certain drugs for rare diseases or conditions),
                    ``(E) section 45R (employee health insurance 
                expenses of small employers),
                    ``(F) section 51 (work opportunity credit),
                    ``(G) section 1396 (empowerment zone employment 
                credit), and
                    ``(H) any other section as provided by the 
                Secretary.
    ``(e) Special Rule for Related Party.--This section shall not apply 
in the case of a customer which bears a relationship to a certified 
professional employer organization described in section 267(b) or 
707(b). For purposes of the preceding sentence, such sections shall be 
applied by substituting `10 percent' for `50 percent'.
    ``(f) Special Rule for Certain Individuals.--For purposes of the 
taxes imposed under this subtitle, an individual with net earnings from 
self-employment derived from the customer's trade or business 
(including a partner in a partnership that is a customer) is not a work 
site employee with respect to remuneration paid by a certified 
professional employer organization.
    ``(g) Reporting Requirements and Obligations.--The Secretary shall 
develop such reporting and recordkeeping rules, regulations, and 
procedures as the Secretary determines necessary or appropriate to 
ensure compliance with this title by certified professional employer 
organizations or persons that have been so certified. Such rules shall 
include--
            ``(1) notification of the Secretary in such manner as the 
        Secretary shall prescribe in the case of the commencement or 
        termination of a service contract described in section 
        7705(e)(2) between such a person and a customer, and the 
        employer identification number of such customer,
            ``(2) such information as the Secretary determines 
        necessary for the customer to claim the credits identified in 
        subsection (d) and the manner in which such information is to 
        be provided, as prescribed by the Secretary, and
            ``(3) such other information as the Secretary determines is 
        essential to promote compliance with respect to the credits 
        identified in subsection (d) and section 3302, and
shall be designed in a manner which streamlines, to the extent 
possible, the application of requirements of this section and section 
7705, the exchange of information between a certified professional 
employer organization and its customers, and the reporting and 
recordkeeping obligations of the certified professional employer 
organization.
    ``(h) Regulations.--The Secretary shall prescribe such regulations 
as may be necessary or appropriate to carry out the purposes of this 
section.''.
    (b) Certified Professional Employer Organization Defined.--Chapter 
79 is amended by adding at the end the following new section:

``SEC. 7705. CERTIFIED PROFESSIONAL EMPLOYER ORGANIZATIONS.

    ``(a) In General.--For purposes of this title, the term `certified 
professional employer organization' means a person who applies to be 
treated as a certified professional employer organization for purposes 
of section 3511 and has been certified by the Secretary as meeting the 
requirements of subsection (b).
    ``(b) Certification Requirements.--A person meets the requirements 
of this subsection if such person--
            ``(1) demonstrates that such person (and any owner, 
        officer, and other persons as may be specified in regulations) 
        meets such requirements as the Secretary shall establish, 
        including requirements with respect to tax status, background, 
        experience, business location, and annual financial audits,
            ``(2) agrees that it will satisfy the bond and independent 
        financial review requirements of subsection (c) on an ongoing 
        basis,
            ``(3) agrees that it will satisfy such reporting 
        obligations as may be imposed by the Secretary,
            ``(4) computes its taxable income using an accrual method 
        of accounting unless the Secretary approves another method,
            ``(5) agrees to verify on such periodic basis as the 
        Secretary may prescribe that it continues to meet the 
        requirements of this subsection, and
            ``(6) agrees to notify the Secretary in writing within such 
        time as the Secretary may prescribe of any change that 
        materially affects the continuing accuracy of any agreement or 
        information that was previously made or provided under this 
        subsection.
    ``(c) Bond and Independent Financial Review.--
            ``(1) In general.--An organization meets the requirements 
        of this paragraph if such organization--
                    ``(A) meets the bond requirements of paragraph (2), 
                and
                    ``(B) meets the independent financial review 
                requirements of paragraph (3).
            ``(2) Bond.--
                    ``(A) In general.--A certified professional 
                employer organization meets the requirements of this 
                paragraph if the organization has posted a bond for the 
                payment of taxes under subtitle C (in a form acceptable 
                to the Secretary) that is in an amount at least equal 
                to the amount specified in subparagraph (B).
                    ``(B) Amount of bond.--For the period April 1 of 
                any calendar year through March 31 of the following 
                calendar year, the amount of the bond required is equal 
                to the greater of--
                            ``(i) 5 percent of the organization's 
                        liability under section 3511 for taxes imposed 
                        by subtitle C during the preceding calendar 
                        year (but not to exceed $1,000,000), or
                            ``(ii) $50,000.
            ``(3) Independent financial review requirements.--A 
        certified professional employer organization meets the 
        requirements of this paragraph if such organization--
                    ``(A) has, as of the most recent audit date, caused 
                to be prepared and provided to the Secretary (in such 
                manner as the Secretary may prescribe) an opinion of an 
                independent certified public accountant as to whether 
                the certified professional employer organization's 
                financial statements are presented fairly in accordance 
                with generally accepted accounting principles, and
                    ``(B) provides to the Secretary an assertion 
                regarding Federal employment tax payments and an 
                examination level attestation on such assertion from an 
                independent certified public accountant not later than 
                the last day of the second month beginning after the 
                end of each calendar quarter.
        Such assertion shall state that the organization has withheld 
        and made deposits of all taxes imposed by chapters 21, 22, and 
        24 in accordance with regulations imposed by the Secretary for 
        such calendar quarter and such examination level attestation 
        shall state that such assertion is fairly stated, in all 
        material respects.
            ``(4) Controlled group rules.--For purposes of the 
        requirements of paragraphs (2) and (3), all certified 
        professional employer organizations that are members of a 
        controlled group within the meaning of sections 414(b) and (c) 
        shall be treated as a single organization.
            ``(5) Failure to file assertion and attestation.--If the 
        certified professional employer organization fails to file the 
        assertion and attestation required by paragraph (3) with 
        respect to any calendar quarter, then the requirements of 
        paragraph (3) with respect to such failure shall be treated as 
        not satisfied for the period beginning on the due date for such 
        attestation.
            ``(6) Audit date.--For purposes of paragraph (3)(A), the 
        audit date shall be six months after the completion of the 
        organization's fiscal year.
    ``(d) Suspension and Revocation Authority.--The Secretary may 
suspend or revoke a certification of any person under subsection (b) 
for purposes of section 3511 if the Secretary determines that such 
person is not satisfying the agreements or requirements of subsections 
(b) or (c), or fails to satisfy applicable accounting, reporting, 
payment, or deposit requirements.
    ``(e) Work Site Employee.--For purposes of this title--
            ``(1) In general.--The term `work site employee' means, 
        with respect to a certified professional employer organization, 
        an individual who--
                    ``(A) performs services for a customer pursuant to 
                a contract which is between such customer and the 
                certified professional employer organization and which 
                meets the requirements of paragraph (2), and
                    ``(B) performs services at a work site meeting the 
                requirements of paragraph (3).
            ``(2) Service contract requirements.--A contract meets the 
        requirements of this paragraph with respect to an individual 
        performing services for a customer if such contract is in 
        writing and provides that the certified professional employer 
        organization shall--
                    ``(A) assume responsibility for payment of wages to 
                such individual, without regard to the receipt or 
                adequacy of payment from the customer for such 
                services,
                    ``(B) assume responsibility for reporting, 
                withholding, and paying any applicable taxes under 
                subtitle C, with respect to such individual's wages, 
                without regard to the receipt or adequacy of payment 
                from the customer for such services,
                    ``(C) assume responsibility for any employee 
                benefits which the service contract may require the 
                certified professional employer organization to 
                provide, without regard to the receipt or adequacy of 
                payment from the customer for such benefits,
                    ``(D) assume responsibility for recruiting, hiring, 
                and firing workers in addition to the customer's 
                responsibility for recruiting, hiring, and firing 
                workers,
                    ``(E) maintain employee records relating to such 
                individual, and
                    ``(F) agree to be treated as a certified 
                professional employer organization for purposes of 
                section 3511 with respect to such individual.
            ``(3) Work site coverage requirement.--The requirements of 
        this paragraph are met with respect to an individual if at 
        least 85 percent of the individuals performing services for the 
        customer at the work site where such individual performs 
        services are subject to 1 or more contracts with the certified 
        professional employer organization which meet the requirements 
        of paragraph (2) (but not taking into account those individuals 
        who are excluded employees within the meaning of section 
        414(q)(5)).
    ``(f) Public Disclosure.--The Secretary shall make available to the 
public the name and address of--
            ``(1) each person certified as a professional employer 
        organization under subsection (a), and
            ``(2) each person whose certification as a professional 
        employer organization is suspended or revoked under subsection 
        (d).
    ``(g) Determination of Employment Status.--Except to the extent 
necessary for purposes of section 3511, nothing in this section shall 
be construed to affect the determination of who is an employee or 
employer for purposes of this title.
    ``(h) Regulations.--The Secretary shall prescribe such regulations 
as may be necessary or appropriate to carry out the purposes of this 
section.''.
    (c) Conforming Amendments.--
            (1) Section 3302 is amended by adding at the end the 
        following new subsection:
    ``(h) Treatment of Certified Professional Employer Organizations.--
If a certified professional employer organization (as defined in 
section 7705), or a customer of such organization, makes a contribution 
to the State's unemployment fund with respect to wages paid to a work 
site employee, such certified professional employer organization shall 
be eligible for the credits available under this section with respect 
to such contribution.''.
            (2) Section 3303(a) is amended--
                    (A) by striking the period at the end of paragraph 
                (3) and inserting ``; and'' and by inserting after 
                paragraph (3) the following new paragraph:
            ``(4) if the taxpayer is a certified professional employer 
        organization (as defined in section 7705) that is treated as 
        the employer under section 3511, such certified professional 
        employer organization is permitted to collect and remit, in 
        accordance with paragraphs (1), (2), and (3), contributions 
        during the taxable year to the State unemployment fund with 
        respect to a work site employee.'', and
                    (B) in the last sentence--
                            (i) by striking ``paragraphs (1), (2), and 
                        (3)'' and inserting ``paragraphs (1), (2), (3), 
                        and (4)'', and
                            (ii) by striking ``paragraph (1), (2), or 
                        (3)'' and inserting ``paragraph (1), (2), (3), 
                        or (4)''.
            (3) Section 6053(c) is amended by adding at the end the 
        following new paragraph:
            ``(8) Certified professional employer organizations.--For 
        purposes of any report required by this subsection, in the case 
        of a certified professional employer organization that is 
        treated under section 3511 as the employer of a work site 
        employee, the customer with respect to whom a work site 
        employee performs services shall be the employer for purposes 
        of reporting under this section and the certified professional 
        employer organization shall furnish to the customer and the 
        Secretary any information the Secretary prescribes as necessary 
        to complete such reporting no later than such time as the 
        Secretary shall prescribe.''.
            (4) Section 6652 is amended by adding at the end the 
        following new subsection:
    ``(n) Failure to Make Reports Required Under Sections 3511, 
6053(c)(8), and 7705.--In the case of a failure to make a report 
required under section 3511, 6053(c)(8), or 7705 which contains the 
information required by such section on the date prescribed therefor 
(determined with regard to any extension of time for filing), there 
shall be paid (on notice and demand by the Secretary and in the same 
manner as tax) by the person failing to make such report, an amount 
equal to $50 for each report with respect to which there was such a 
failure. In the case of any failure due to negligence or intentional 
disregard the preceding sentence shall be applied by substituting 
`$100' for `$50'.''.
    (d) Clerical Amendments.--
            (1) The table of sections for chapter 25 is amended by 
        adding at the end the following new item:

``Sec. 3511. Certified professional employer organizations.''.
            (2) The table of sections for chapter 79 is amended by 
        inserting after the item relating to section 7704 the following 
        new item:

``Sec. 7705. Certified professional employer organizations.''.
    (f) User Fees.--Section 7528(b) is amended by adding at the end the 
following new paragraph:
            ``(4) Certified professional employer organizations.--The 
        fee charged under the program in connection with the 
        certification by the Secretary of a professional employer 
        organization under section 7705 shall be an annual fee not to 
        exceed $1,000 per year.''.
    (g) Effective Dates.--
            (1) In general.--The amendments made by this section shall 
        apply with respect to wages for services performed on or after 
        January 1 of the first calendar year beginning more than 12 
        months after the date of the enactment of this Act.
            (2) Certification program.--The Secretary of the Treasury 
        shall establish the certification program described in section 
        7705(b) of the Internal Revenue Code of 1986, as added by 
        subsection (b), not later than 6 months before the effective 
        date determined under paragraph (1).
    (h) No Inference.--Nothing contained in this section or the 
amendments made by this section shall be construed to create any 
inference with respect to the determination of who is an employee or 
employer--
            (1) for Federal tax purposes (other than the purposes set 
        forth in the amendments made by this section), or
            (2) for purposes of any other provision of law.

SEC. 207. EXCLUSION OF DIVIDENDS FROM CONTROLLED FOREIGN CORPORATIONS 
              FROM THE DEFINITION OF PERSONAL HOLDING COMPANY INCOME 
              FOR PURPOSES OF THE PERSONAL HOLDING COMPANY RULES.

    (a) In General.--Section 543(a)(1) is amended--
            (1) by redesignating subparagraphs (C) and (D) as 
        subparagraphs (D) and (E), respectively, and
            (2) by inserting after subparagraph (B) the following:
                    ``(C) dividends received by a United States 
                shareholder (as defined in section 951(b)) from a 
                controlled foreign corporation (as defined in section 
                957(a)),''.
    (b) Effective Date.--The amendments made by this Act shall apply to 
taxable years ending on or after the date of the enactment of this Act.

SEC. 208. INFLATION ADJUSTMENT FOR CERTAIN CIVIL PENALTIES UNDER THE 
              INTERNAL REVENUE CODE OF 1986.

    (a) Failure to File Tax Return or Pay Tax.--Section 6651 is amended 
by adding at the end the following new subsection:
    ``(i) Adjustment for Inflation.--
            ``(1) In general.--In the case of any return required to be 
        filed in a calendar year beginning after 2014, the $135 dollar 
        amount under subsection (a) shall be increased by such dollar 
        amount multiplied by the cost-of-living adjustment determined 
        under section 1(f)(3) determined by substituting `calendar year 
        2013' for `calendar year 1992' in subparagraph (B) thereof.
            ``(2) Rounding.--If any amount adjusted under paragraph (1) 
        is not a multiple of $5, such amount shall be rounded to the 
        next lowest multiple of $5.''.
    (b) Failure to File Certain Information Returns, Registration 
Statements, etc.--
            (1) In general.--Section 6652(c) is amended by adding at 
        the end the following new paragraph:
            ``(6) Adjustment for inflation.--
                    ``(A) In general.--In the case of any failure 
                relating to a return required to be filed in a calendar 
                year beginning after 2014, each of the dollar amounts 
                under paragraphs (1), (2), and (3) shall be increased 
                by such dollar amount multiplied by the cost-of-living 
                adjustment determined under section 1(f)(3) determined 
                by substituting `calendar year 2013' for `calendar year 
                1992' in subparagraph (B) thereof.
                    ``(B) Rounding.--If any amount adjusted under 
                subparagraph (A)--
                            ``(i) is not less than $5,000 and is not a 
                        multiple of $500, such amount shall be rounded 
                        to the next lowest multiple of $500, and
                            ``(ii) is not described in clause (i) and 
                        is not a multiple of $5, such amount shall be 
                        rounded to the next lowest multiple of $5.''.
            (2) Conforming amendments.--
                    (A) The last sentence of section 6652(c)(1)(A) is 
                amended by striking ``the first sentence of this 
                subparagraph shall be applied by substituting `$100' 
                for `$20' and'' and inserting ``in applying the first 
                sentence of this subparagraph, the amount of the 
                penalty for each day during which a failure continues 
                shall be $100 in lieu of the amount otherwise 
                specified, and''.
                    (B) Section 6652(c)(2)(C)(ii) is amended by 
                striking ``the first sentence of paragraph (1)(A)'' and 
                all that follows and inserting ``in applying the first 
                sentence of paragraph (1)(A), the amount of the penalty 
                for each day during which a failure continues shall be 
                $100 in lieu of the amount otherwise specified, and in 
                lieu of applying the second sentence of paragraph 
                (1)(A), the maximum penalty under paragraph (1)(A) 
                shall not exceed $50,000, and''.
    (c) Other Assessable Penalties With Respect to the Preparation of 
Tax Returns for Other Persons.--Section 6695 is amended by adding at 
the end the following new subsection:
    ``(h) Adjustment for Inflation.--
            ``(1) In general.--In the case of any failure relating to a 
        return or claim for refund filed in a calendar year beginning 
        after 2014, each of the dollar amounts under subsections (a), 
        (b), (c), (d), (e), (f), and (g) shall be increased by such 
        dollar amount multiplied by the cost-of-living adjustment 
        determined under section 1(f)(3) determined by substituting 
        `calendar year 2013' for `calendar year 1992' in subparagraph 
        (B) thereof.
            ``(2) Rounding.--If any amount adjusted under subparagraph 
        (A)--
                    ``(A) is not less than $5,000 and is not a multiple 
                of $500, such amount shall be rounded to the next 
                lowest multiple of $500, and
                    ``(B) is not described in clause (i) and is not a 
                multiple of $5, such amount shall be rounded to the 
                next lowest multiple of $5.''.
    (d) Failure to File Partnership Return.--Section 6698 is amended by 
adding at the end the following new subsection:
    ``(e) Adjustment for Inflation.--
            ``(1) In general.--In the case of any return required to be 
        filed in a calendar year beginning after 2014, the $195 dollar 
        amount under subsection (b)(1) shall be increased by such 
        dollar amount multiplied by the cost-of-living adjustment 
        determined under section 1(f)(3) determined by substituting 
        `calendar year 2013' for `calendar year 1992' in subparagraph 
        (B) thereof.
            ``(2) Rounding.--If any amount adjusted under paragraph (1) 
        is not a multiple of $5, such amount shall be rounded to the 
        next lowest multiple of $5.''.
    (e) Failure to File S Corporation Return.--Section 6699 is amended 
by adding at the end the following new subsection:
    ``(e) Adjustment for Inflation.--
            ``(1) In general.--In the case of any return required to be 
        filed in a calendar year beginning after 2014, the $195 dollar 
        amount under subsection (b)(1) shall be increased by such 
        dollar amount multiplied by the cost-of-living adjustment 
        determined under section 1(f)(3) determined by substituting 
        `calendar year 2013' for `calendar year 1992' in subparagraph 
        (B) thereof.
            ``(2) Rounding.--If any amount adjusted under paragraph (1) 
        is not a multiple of $5, such amount shall be rounded to the 
        next lowest multiple of $5.''.
    (f) Failure to File Correct Information Returns.--Section 
6721(f)(1) is amended by striking ``For each fifth calendar year 
beginning after 2012'' and inserting ``In the case of any failure 
relating to a return required to be filed in a calendar year beginning 
after 2014''.
    (g) Failure to Furnish Correct Payee Statements.--Section 
6722(f)(1) is amended by striking ``For each fifth calendar year 
beginning after 2012'' and inserting ``In the case of any failure 
relating to a statement required to be furnished in a calendar year 
beginning after 2014''.
    (h) Effective Date.--The amendments made by this section shall 
apply to returns required to be filed after December 31, 2014.

SEC. 209. INCREASE IN CONTINUOUS LEVY.

    (a) In General.--Paragraph (3) of section 6331(h) is amended by 
striking the period at the end and inserting ``and by substituting `30 
percent' for `15 percent' in the case of any specified payment due to a 
Medicare provider or supplier under title XVIII of the Social Security 
Act.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to payments made after 180 days after the date of the enactment of this 
Act.

            Passed the House of Representatives December 3, 2014.

            Attest:

                                                                 Clerk.
113th CONGRESS

  2d Session

                               H. R. 647

_______________________________________________________________________

                                 AN ACT

   To amend the Internal Revenue Code of 1986 to provide for the tax 
  treatment of ABLE accounts established under State programs for the 
   care of family members with disabilities, and for other purposes.