Version	Word Count	Changes From Previous Version	Percent Change
Introduced in House	4,792	n/a	n/a
Reported in House	5,171	39	29%
Engrossed in House	5,092	9	8%
Referred in Senate	5,049	5 Show Changes Hide Changes	1%

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HR 5719 EHRFSCommentsClose CommentsPermalink

110th CONGRESS 2d Session H. R. 5719 AN ACT

To amend the Internal Revenue Code of 1986 to conform return preparer penalty standards, delay implementation of withholding taxes on government contractors, enhance taxpayer protections, assist low-income taxpayers, and for other purposes.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE, ETC.

(a) Short Title- This Act may be cited as the `Taxpayer Assistance and Simplification Act of 2008'.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(c) Table of Contents- The table of contents of this Act is as follows:CommentsClose CommentsPermalink





Sec. 1. Short title, etc.CommentsClose CommentsPermalink





Sec. 2. Modification of penalty on understatement of taxpayer's liability by tax return preparer.CommentsClose CommentsPermalink





Sec. 3. Removal of cellular telephones (or similar telecommunications equipment) from listed property.CommentsClose CommentsPermalink





Sec. 4. Delay of application of withholding requirement on certain governmental payments for goods and services.CommentsClose CommentsPermalink





Sec. 5. Elderly and disabled individuals receiving in-home care under certain government programs not subject to employment tax provisions.CommentsClose CommentsPermalink





Sec. 6. Referrals to low income taxpayer clinics permitted.CommentsClose CommentsPermalink





Sec. 7. Programs for the benefit of low-income taxpayers.CommentsClose CommentsPermalink





Sec. 8. EITC outreach.CommentsClose CommentsPermalink





Sec. 9. Prohibition on IRS debt indicators for predatory refund anticipation loans.CommentsClose CommentsPermalink





Sec. 10. Study on delivery of tax refunds.CommentsClose CommentsPermalink





Sec. 11. Extension of time for return of property for wrongful levy.CommentsClose CommentsPermalink





Sec. 12. Individuals held harmless on wrongful levy, etc., on individual retirement plan.CommentsClose CommentsPermalink





Sec. 13. Taxpayer notification of suspected identity theft.CommentsClose CommentsPermalink





Sec. 14. Repeal of authority to enter into private debt collection contracts.CommentsClose CommentsPermalink





Sec. 15. Clarification of IRS unclaimed refund authority.CommentsClose CommentsPermalink





Sec. 16. Prohibition on misuse of Department of the Treasury names and symbols.CommentsClose CommentsPermalink





Sec. 17. Substantiation of amounts paid or distributed out of health savings account.CommentsClose CommentsPermalink





Sec. 18. Certain domestically controlled foreign persons performing services under contract with United States Government treated as American employers.CommentsClose CommentsPermalink





Sec. 19. Time for payment of corporate estimated tax.CommentsClose CommentsPermalink





Sec. 20 GAO study on health savings accounts.CommentsClose CommentsPermalink

SEC. 2. MODIFICATION OF PENALTY ON UNDERSTATEMENT OF TAXPAYER'S LIABILITY BY TAX RETURN PREPARER.

(a) In General- Subsection (a) of section 6694 (relating to understatement due to unreasonable positions) is amended to read as follows:CommentsClose CommentsPermalink





`(a) Understatement Due to Unreasonable Positions-CommentsClose CommentsPermalink





`(1) IN GENERAL- If a tax return preparer--CommentsClose CommentsPermalink





`(A) prepares any return or claim of refund with respect to which any part of an understatement of liability is due to a position described in paragraph (2), andCommentsClose CommentsPermalink





`(B) knew (or reasonably should have known) of the position,CommentsClose CommentsPermalink





such tax return preparer shall pay a penalty with respect to each such return or claim in an amount equal to the greater of $1,000 or 50 percent of the income derived (or to be derived) by the tax return preparer with respect to the return or claim.CommentsClose CommentsPermalink





`(2) UNREASONABLE POSITION-CommentsClose CommentsPermalink





`(A) IN GENERAL- Except as otherwise provided in this paragraph, a position is described in this paragraph unless there is or was substantial authority for the position.CommentsClose CommentsPermalink





`(B) DISCLOSED POSITIONS- If the position was disclosed as provided in section 6662(d)(2)(B)(ii)(I) and is not a position to which subparagraph (C) applies, the position is described in this paragraph unless there is a reasonable basis for the position.CommentsClose CommentsPermalink





`(C) TAX SHELTERS AND REPORTABLE TRANSACTIONS- If the position is with respect to a tax shelter (as defined in section 6662(d)(2)(C)(ii)) or a reportable transaction to which section 6662A applies, the position is described in this paragraph unless it is reasonable to believe that the position would more likely than not be sustained on its merits.CommentsClose CommentsPermalink





`(3) REASONABLE CAUSE EXCEPTION- No penalty shall be imposed under this subsection if it is shown that there is reasonable cause for the understatement and the tax return preparer acted in good faith.'.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by this section shall apply--CommentsClose CommentsPermalink





(1) in the case of a position described in subparagraph (A) or (B) of section 6694(a)(2) of the Internal Revenue Code of 1986 (as amended by this section), to returns prepared after May 25, 2007, andCommentsClose CommentsPermalink





(2) in the case of a position described in subparagraph (C) of such section (as amended by this section), to returns prepared for taxable years ending after the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 3. REMOVAL OF CELLULAR TELEPHONES (OR SIMILAR TELECOMMUNICATIONS EQUIPMENT) FROM LISTED PROPERTY.

(a) In General- Subparagraph (A) of section 280F(d)(4) (defining listed property) is amended by inserting `and' at the end of clause (iv), by striking clause (v), and by redesignating clause (vi) as clause (v).CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 2008.CommentsClose CommentsPermalink

SEC. 4. DELAY OF APPLICATION OF WITHHOLDING REQUIREMENT ON CERTAIN GOVERNMENTAL PAYMENTS FOR GOODS AND SERVICES.

(a) In General- Subsection (b) of section 511 of the Tax Increase Prevention and Reconciliation Act of 2005 is amended by striking `December 31, 2010' and inserting `December 31, 2011'.CommentsClose CommentsPermalink





(b) Report to Congress- Not later than 6 months after the date of the enactment of this Act, the Secretary of the Treasury shall submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate a report with respect to the withholding requirements of section 3402(t) of the Internal Revenue Code of 1986, including a detailed analysis of--CommentsClose CommentsPermalink





(1) the problems, if any, which are anticipated in administering and complying with such requirements,CommentsClose CommentsPermalink





(2) the burdens, if any, that such requirements will place on governments and businesses (taking into account such mechanisms as may be necessary to administer such requirements), andCommentsClose CommentsPermalink





(3) the application of such requirements to small expenditures for services and goods by governments.CommentsClose CommentsPermalink

SEC. 5. ELDERLY AND DISABLED INDIVIDUALS RECEIVING IN-HOME CARE UNDER CERTAIN GOVERNMENT PROGRAMS NOT SUBJECT TO EMPLOYMENT TAX PROVISIONS.

(a) In General- Chapter 25 (relating to general provisions relating to employment taxes) is amended by adding at the end the following new section:CommentsClose CommentsPermalink

`SEC. 3511. ELDERLY AND DISABLED INDIVIDUALS RECEIVING IN-HOME CARE UNDER CERTAIN GOVERNMENT PROGRAMS.

`(a) In General- In the case of amounts paid under a home care service program to a home care service provider by the fiscal administrator of such program--CommentsClose CommentsPermalink





`(1) the home care service recipient shall not be liable for the payment of any taxes imposed under this subtitle with respect to amounts paid for the provision of services under such program, andCommentsClose CommentsPermalink





`(2) the fiscal administrator shall be so liable.CommentsClose CommentsPermalink





`(b) Definitions- For purposes of this section--CommentsClose CommentsPermalink





`(1) HOME CARE SERVICE PROGRAM- The term `home care service program' means a State or local government program--CommentsClose CommentsPermalink





`(A) any portion of which is funded with Federal funds, andCommentsClose CommentsPermalink





`(B) under which domestic services are provided to elderly or disabled individuals in their homes.CommentsClose CommentsPermalink





Such term shall not include any program to the extent home care service recipients make payments to the home care service providers for such in-home domestic services.CommentsClose CommentsPermalink





`(2) HOME CARE SERVICE PROVIDER- The term `home care service provider' means any individual who provides domestic services to a home care service recipient under a home care service program.CommentsClose CommentsPermalink





`(3) HOME CARE SERVICE RECIPIENT- The term `home care service recipient' means any individual receiving domestic services under a home care service program.CommentsClose CommentsPermalink





`(4) FISCAL ADMINISTRATOR- The term `fiscal administrator' means any person or governmental entity who pays amounts under a home care service program to home care service providers for the provision of domestic services under such program.CommentsClose CommentsPermalink





`(c) Returns by Fiscal Administrator- For purposes of this section--CommentsClose CommentsPermalink





`(1) IN GENERAL- Returns relating to taxes imposed or amounts required to be withheld under this subtitle shall be made under the identifying number of the fiscal administrator.CommentsClose CommentsPermalink





`(2) IDENTIFICATION OF SERVICE RECIPIENT- The fiscal administrator shall, to the extent required under regulations prescribed by the Secretary, make a return setting forth--CommentsClose CommentsPermalink





`(A) the name, address, and identifying number of each home care service recipient for whom amounts are paid by such fiscal administrator under the home care services program, andCommentsClose CommentsPermalink





`(B) such other information as the Secretary may require.CommentsClose CommentsPermalink





`(d) Regulations- The Secretary may prescribe such regulations or other guidance as may be necessary to carry out the purposes of this section, including requiring deposits of any tax imposed under this subtitle.'.CommentsClose CommentsPermalink





(b) Service Recipient Identification Return Treated as Information Return- Paragraph (3) of section 6724(d) is amended by striking `and' at the end of subparagraph (C)(ii), by striking the period at the end of subparagraph (D)(ii) and inserting `, and', and by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





`(E) any requirement under section 3511(c)(2).'.CommentsClose CommentsPermalink





(c) Clerical Amendment- The table of sections for chapter 25 is amended by adding at the end the following new item:CommentsClose CommentsPermalink





`Sec. 3511. Elderly and disabled individuals receiving in-home care under certain government programs.'.CommentsClose CommentsPermalink





(d) Effective Date- The amendments made by this section shall apply to amounts paid after December 31, 2008.CommentsClose CommentsPermalink

SEC. 6. REFERRALS TO LOW INCOME TAXPAYER CLINICS PERMITTED.

(a) In General- Subsection (c) of section 7526 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





`(6) TREASURY EMPLOYEES PERMITTED TO REFER TAXPAYERS TO QUALIFIED LOW-INCOME TAXPAYER CLINICS- Notwithstanding any other provision of law, officers and employees of the Department of the Treasury may refer taxpayers for advice and assistance to qualified low-income taxpayer clinics receiving funding under this section.'.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by this section shall apply to referrals made after the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 7. PROGRAMS FOR THE BENEFIT OF LOW-INCOME TAXPAYERS.

(a) Volunteer Income Tax Assistance Programs- Chapter 77 (relating to miscellaneous provisions) is amended by inserting after section 7526 the following new section:CommentsClose CommentsPermalink

`SEC. 7526A. VOLUNTEER INCOME TAX ASSISTANCE PROGRAMS.

`(a) In General- The Secretary may, subject to the availability of appropriated funds, make grants to provide matching funds for the development, expansion, or continuation of volunteer income tax assistance programs.CommentsClose CommentsPermalink





`(b) Volunteer Income Tax Assistance Program- For purposes of this section, the term `volunteer income tax assistance program' means a program--CommentsClose CommentsPermalink





`(1) which does not charge taxpayers for its return preparation services,CommentsClose CommentsPermalink





`(2) which operates programs to assist low and moderate-income (as determined by the Secretary) taxpayers in preparing and filing their Federal income tax returns, andCommentsClose CommentsPermalink





`(3) in which all of the volunteers who assist in the preparation of Federal income tax returns meet the requirements prescribed by the Secretary.CommentsClose CommentsPermalink





`(c) Special Rules and Limitations-CommentsClose CommentsPermalink





`(1) AGGREGATE LIMITATION- Unless otherwise provided by specific appropriation, the Secretary shall not allocate more than $10,000,000 per year (exclusive of costs of administering the program) to grants under this section.CommentsClose CommentsPermalink





`(2) OTHER APPLICABLE RULES- Rules similar to the rules under paragraphs (2) through (6) of section 7526(c) shall apply with respect to the awarding of grants to volunteer income tax assistance programs.'.CommentsClose CommentsPermalink





(b) Increase in Authorized Grants for Low-Income Taxpayer Clinics- Paragraph (1) of section 7526(c) (relating to aggregate limitation) is amended by striking `$6,000,000' and inserting `$10,000,000'.CommentsClose CommentsPermalink





(c) Clerical Amendments-CommentsClose CommentsPermalink





(1) Section 7526(c)(5) is amended by inserting `qualified' before `low-income'.CommentsClose CommentsPermalink





(2) The table of sections for chapter 77 is amended by inserting after the item relating to section 7526 the following new item:CommentsClose CommentsPermalink





`Sec. 7526A. Volunteer income tax assistance programs.'.CommentsClose CommentsPermalink





(d) Effective Date- The amendments made by this section shall take effect on the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 8. EITC OUTREACH.

(a) In General- Section 32 (relating to earned income) is amended by adding at the end the following new subsection:CommentsClose CommentsPermalink





`(n) Notification of Potential Eligibility for Credit and Refund-CommentsClose CommentsPermalink





`(1) IN GENERAL- To the extent possible and on an annual basis, the Secretary shall provide to each taxpayer who--CommentsClose CommentsPermalink





`(A) for any preceding taxable year for which credit or refund is not precluded by section 6511, andCommentsClose CommentsPermalink





`(B) did not claim the credit under subsection (a) but may be allowed such credit for any such taxable year based on return or return information (as defined in section 6103(b)) available to the Secretary,CommentsClose CommentsPermalink





notice that such taxpayer may be eligible to claim such credit and a refund for such taxable year.CommentsClose CommentsPermalink





`(2) NOTICE- Notice provided under paragraph (1) shall be in writing and sent to the last known address of the taxpayer.'.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by this section shall take effect on the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 9. PROHIBITION ON IRS DEBT INDICATORS FOR PREDATORY REFUND ANTICIPATION LOANS.

(a) In General- Subsection (f) of section 6011 (relating to promotion of electronic filing) is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





`(3) PROHIBITION ON IRS DEBT INDICATORS FOR PREDATORY REFUND ANTICIPATION LOANS-CommentsClose CommentsPermalink





`(A) IN GENERAL- In carrying out any program under this subsection, the Secretary shall not provide a debt indicator to any person with respect to any refund anticipation loan if the Secretary determines that the business practices of such person involve refund anticipation loans and related charges and fees that are predatory.CommentsClose CommentsPermalink





`(B) REFUND ANTICIPATION LOAN- For purposes of this paragraph, the term `refund anticipation loan' means a loan of money or of any other thing of value to a taxpayer secured by the taxpayer's anticipated receipt of a Federal tax refund.CommentsClose CommentsPermalink





`(C) IRS DEBT INDICATOR- For purposes of this paragraph, the term `debt indicator' means a notification provided through a tax return's acknowledgment file that a refund will be offset to repay debts for delinquent Federal or State taxes, student loans, child support, or other Federal agency debt.'.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by this section shall take effect on the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 10. STUDY ON DELIVERY OF TAX REFUNDS.

(a) In General- The Secretary of the Treasury, in consultation with the National Taxpayer Advocate, shall conduct a study on the feasibility of delivering tax refunds on debit cards, prepaid cards, and other electronic means to assist individuals that do not have access to financial accounts or institutions.CommentsClose CommentsPermalink





(b) Report- Not later than 1 year after the date of the enactment of this Act, the Secretary of the Treasury shall submit a report to Congress containing the results of the study conducted under subsection (a).CommentsClose CommentsPermalink

SEC. 11. EXTENSION OF TIME FOR RETURN OF PROPERTY FOR WRONGFUL LEVY.

(a) Extension of Time for Return of Property Subject to Levy- Subsection (b) of section 6343 (relating to return of property) is amended by striking `9 months' and inserting `2 years'.CommentsClose CommentsPermalink





(b) Period of Limitation on Suits- Subsection (c) of section 6532 (relating to suits by persons other than taxpayers) is amended--CommentsClose CommentsPermalink





(1) in paragraph (1) by striking `9 months' and inserting `2 years', andCommentsClose CommentsPermalink





(2) in paragraph (2) by striking `9-month' and inserting `2-year'.CommentsClose CommentsPermalink





(c) Effective Date- The amendments made by this section shall apply to--CommentsClose CommentsPermalink





(1) levies made after the date of the enactment of this Act, andCommentsClose CommentsPermalink





(2) levies made on or before such date if the 9-month period has not expired under section 6343(b) of the Internal Revenue Code of 1986 (without regard to this section) as of such date.CommentsClose CommentsPermalink

SEC. 12. INDIVIDUALS HELD HARMLESS ON WRONGFUL LEVY, ETC., ON INDIVIDUAL RETIREMENT PLAN.

(a) In General- Section 6343 (relating to authority to release levy and return property) is amended by adding at the end the following new subsection:CommentsClose CommentsPermalink





`(f) Individuals Held Harmless on Wrongful Levy, etc. on Individual Retirement Plan-CommentsClose CommentsPermalink





`(1) IN GENERAL- If the Secretary determines that an individual retirement plan has been levied upon in a case to which subsection (b) or (d)(2)(A) applies, an amount equal to the sum of--CommentsClose CommentsPermalink





`(A) the amount of money returned by the Secretary on account of such levy, andCommentsClose CommentsPermalink





`(B) interest paid under subsection (c) on such amount of money,CommentsClose CommentsPermalink





may be deposited into such individual retirement plan or any other individual retirement plan (other than an endowment contract) to which a rollover from the plan levied upon is permitted. An amount may not be deposited into a Roth IRA under the preceding sentence unless the individual retirement plan levied upon was a Roth IRA at the time of such levy.CommentsClose CommentsPermalink





`(2) TREATMENT AS ROLLOVER- If amounts are deposited into an individual retirement plan under paragraph (1) not later than the 60th day after the date on which the individual receives the amounts under paragraph (1)--CommentsClose CommentsPermalink





`(A) such deposit shall be treated as a rollover described in section 408(d)(3)(A)(i),CommentsClose CommentsPermalink





`(B) to the extent the deposit includes interest paid under subsection (c), such interest shall not be includible in gross income, andCommentsClose CommentsPermalink





`(C) such deposit shall not be taken into account under section 408(d)(3)(B).CommentsClose CommentsPermalink





For purposes of subparagraph (B), an amount shall be treated as interest only to the extent that the amount deposited exceeds the amount of the levy.CommentsClose CommentsPermalink





`(3) REFUND, ETC., OF INCOME TAX ON LEVY- If any amount is includible in gross income for a taxable year by reason of a levy referred to in paragraph (1) and any portion of such amount is treated as a rollover under paragraph (2), any tax imposed by chapter 1 on such portion shall not be assessed, and if assessed shall be abated, and if collected shall be credited or refunded as an overpayment made on the due date for filing the return of tax for such taxable year.CommentsClose CommentsPermalink





`(4) INTEREST- Notwithstanding subsection (d), interest shall be allowed under subsection (c) in a case in which the Secretary makes a determination described in subsection (d)(2)(A) with respect to a levy upon an individual retirement plan.'.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by this section shall apply to amounts paid under subsections (b), (c), and (d)(2)(A) of section 6343 of the Internal Revenue Code of 1986 after the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 13. TAXPAYER NOTIFICATION OF SUSPECTED IDENTITY THEFT.

(a) In General- Chapter 77 (relating to miscellaneous provisions) is amended by adding at the end the following new section:CommentsClose CommentsPermalink

`SEC. 7529. NOTIFICATION OF SUSPECTED IDENTITY THEFT.

`If, in the course of an investigation under the internal revenue laws, the Secretary determines that there was or may have been an unauthorized use of the identity of the taxpayer or a dependent of the taxpayer, the Secretary shall, to the extent permitted by law--CommentsClose CommentsPermalink





`(1) as soon as practicable and without jeopardizing such investigation, notify the taxpayer of such determination, andCommentsClose CommentsPermalink





`(2) if any person is criminally charged by indictment or information with respect to such unauthorized use, notify such taxpayer as soon as practicable of such charge.'.CommentsClose CommentsPermalink





(b) Clerical Amendment- The table of sections for chapter 77 is amended by adding at the end the following new item:CommentsClose CommentsPermalink





`Sec. 7529. Notification of suspected identity theft.'.CommentsClose CommentsPermalink





(c) Effective Date- The amendments made by this section shall apply to determinations made after the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 14. REPEAL OF AUTHORITY TO ENTER INTO PRIVATE DEBT COLLECTION CONTRACTS.

(a) In General- Subchapter A of chapter 64 is amended by striking section 6306.CommentsClose CommentsPermalink





(b) Conforming Amendments-CommentsClose CommentsPermalink





(1) Subchapter B of chapter 76 is amended by striking section 7433A.CommentsClose CommentsPermalink





(2) Section 7811 is amended by striking subsection (g).CommentsClose CommentsPermalink





(3) Section 1203 of the Internal Revenue Service Restructuring Act of 1998 is amended by striking subsection (e).CommentsClose CommentsPermalink





(4) The table of sections for subchapter A of chapter 64 is amended by striking the item relating to section 6306.CommentsClose CommentsPermalink





(5) The table of sections for subchapter B of chapter 76 is amended by striking the item relating to section 7433A.CommentsClose CommentsPermalink





(c) Effective Date-CommentsClose CommentsPermalink





(1) IN GENERAL- Except as otherwise provided in this subsection, the amendments made by this section shall take effect on the date of the enactment of this Act.CommentsClose CommentsPermalink





(2) EXCEPTION FOR EXISTING CONTRACTS, ETC- The amendments made by this section shall not apply to any contract which was entered into before March 1, 2008, and is not renewed or extended on or after such date.CommentsClose CommentsPermalink





(3) UNAUTHORIZED CONTRACTS AND EXTENSIONS TREATED AS VOID- Any qualified tax collection contract (as defined in section 6306 of the Internal Revenue Code of 1986, as in effect before its repeal) which is entered into on or after March 1, 2008, and any extension or renewal on or after such date of any qualified tax collection contract (as so defined), shall be void.CommentsClose CommentsPermalink

SEC. 15. CLARIFICATION OF IRS UNCLAIMED REFUND AUTHORITY.

Paragraph (1) of section 6103(m) (relating to tax refunds) is amended by inserting `, and through any other means of mass communication,' after `media'.CommentsClose CommentsPermalink

SEC. 16. PROHIBITION ON MISUSE OF DEPARTMENT OF THE TREASURY NAMES AND SYMBOLS.

(a) In General- Subsection (a) of section 333 of title 31, United States Code, is amended by inserting `Internet domain address,' after `solicitation,' both places it appears.CommentsClose CommentsPermalink





(b) Penalty for Misuse by Electronic Means- Subsections (c)(2) and (d)(1) of section 333 of such Code are each amended by inserting `or any other mass communications by electronic means,' after `telecast,'.CommentsClose CommentsPermalink





(c) Effective Date- The amendments made by this section shall apply with respect to violations occurring after the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 17. SUBSTANTIATION OF AMOUNTS PAID OR DISTRIBUTED OUT OF HEALTH SAVINGS ACCOUNT.

(a) In General- Paragraph (1) of section 223(f) (relating to amounts used for qualified medical expenses) is amended by inserting `(and, in the case of amounts paid or distributed after December 31, 2010, substantiated in a manner similar to the substantiation required for flexible spending arrangements as related to account beneficiary substantiation requirements)' after `account beneficiary'.CommentsClose CommentsPermalink





(b) Reports- Subsection (h) of section 223 (relating to reports) is amended--CommentsClose CommentsPermalink





(1) by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively,CommentsClose CommentsPermalink





(2) by moving the text of subparagraphs (A) and (B) (as so redesignated) and the last sentence 2 ems to the right,CommentsClose CommentsPermalink





(3) by striking `(h) Reports- The Secretary may require--' and inserting the following:CommentsClose CommentsPermalink





`(h) Reports-CommentsClose CommentsPermalink





`(1) IN GENERAL- The Secretary may require--', andCommentsClose CommentsPermalink





(4) by adding at the end the following new paragraph:CommentsClose CommentsPermalink





`(2) RELATING TO SUBSTANTIATION- Not later than January 15 of each calendar year after 2011, the trustee of a health savings account shall make a report regarding such account to the Secretary and the account beneficiary setting forth--CommentsClose CommentsPermalink





`(A) the name, address, and identifying number of the account beneficiary, andCommentsClose CommentsPermalink





`(B) the amount paid or distributed out of such account for the preceding calendar year not substantiated in accordance with subsection (f)(1).'.CommentsClose CommentsPermalink





(c) Effective Date- The amendments made by this section shall apply with respect to amounts paid or distributed out of health savings accounts after December 31, 2010.CommentsClose CommentsPermalink

SEC. 18. CERTAIN DOMESTICALLY CONTROLLED FOREIGN PERSONS PERFORMING SERVICES UNDER CONTRACT WITH UNITED STATES GOVERNMENT TREATED AS AMERICAN EMPLOYERS.

(a) FICA Taxes- Section 3121 (relating to definitions) is amended by adding at the end the following new subsection:CommentsClose CommentsPermalink





`(z) Treatment of Certain Foreign Persons as American Employers-CommentsClose CommentsPermalink





`(1) IN GENERAL- If any employee of a foreign person is performing services in connection with a contract between the United States Government (or any instrumentality thereof) and any member of any domestically controlled group of entities which includes such foreign person, such foreign person shall be treated for purposes of this chapter as an American employer with respect to such services performed by such employee.CommentsClose CommentsPermalink





`(2) DOMESTICALLY CONTROLLED GROUP OF ENTITIES- For purposes of this subsection--CommentsClose CommentsPermalink





`(A) IN GENERAL- The term `domestically controlled group of entities' means a controlled group of entities the common parent of which is a domestic corporation.CommentsClose CommentsPermalink





`(B) CONTROLLED GROUP OF ENTITIES- The term `controlled group of entities' means a controlled group of corporations as defined in section 1563(a)(1), except that--CommentsClose CommentsPermalink





`(i) `more than 50 percent' shall be substituted for `at least 80 percent' each place it appears therein, andCommentsClose CommentsPermalink





`(ii) the determination shall be made without regard to subsections (a)(4) and (b)(2) of section 1563.CommentsClose CommentsPermalink





A partnership or any other entity (other than a corporation) shall be treated as a member of a controlled group of entities if such entity is controlled (within the meaning of section 954(d)(3)) by members of such group (including any entity treated as a member of such group by reason of this sentence).CommentsClose CommentsPermalink





`(3) LIABILITY OF COMMON PARENT- In the case of a foreign person who is a member of any domestically controlled group of entities, the common parent of such group shall be jointly and severally liable for any tax under this chapter for which such foreign person is liable by reason of this subsection, and for any penalty imposed on such person by this title with respect to any failure to pay such tax or to file any return or statement with respect to such tax or wages subject to such tax. No deduction shall be allowed under this title for any liability imposed by the preceding sentence.CommentsClose CommentsPermalink





`(4) COORDINATION- Paragraph (1) shall not apply to any services which are covered by an agreement under subsection (l).CommentsClose CommentsPermalink





`(5) CROSS REFERENCE- For relief from taxes in cases covered by certain international agreements, see sections 3101(c) and 3111(c).'.CommentsClose CommentsPermalink





(b) Social Security Benefits- Subsection (e) of section 210 of the Social Security Act (42 U.S.C. 410(e)) is amended--CommentsClose CommentsPermalink





(1) by striking `(e) The term' and inserting `(e)(1) The term',CommentsClose CommentsPermalink





(2) by redesignating clauses (1) through (6) as clauses (A) through (F), respectively, andCommentsClose CommentsPermalink





(3) by adding at the end the following new paragraph:CommentsClose CommentsPermalink





`(2)(A) If any employee of a foreign person is performing services in connection with a contract between the United States Government (or any instrumentality thereof) and any member of any domestically controlled group of entities which includes such foreign person, such foreign person shall be treated as an American employer with respect to such services performed by such employee.CommentsClose CommentsPermalink





`(B) For purposes of this paragraph--CommentsClose CommentsPermalink





`(i) The term `domestically controlled group of entities' means a controlled group of entities the common parent of which is a domestic corporation.CommentsClose CommentsPermalink





`(ii) The term `controlled group of entities' means a controlled group of corporations as defined in section 1563(a)(1) of the Internal Revenue Code of 1986, except that--CommentsClose CommentsPermalink





`(I) `more than 50 percent' shall be substituted for `at least 80 percent' each place it appears therein, andCommentsClose CommentsPermalink





`(II) the determination shall be made without regard to subsections (a)(4) and (b)(2) of section 1563 of such Code.CommentsClose CommentsPermalink





A partnership or any other entity (other than a corporation) shall be treated as a member of a controlled group of entities if such entity is controlled (within the meaning of section 954(d)(3) of such Code) by members of such group (including any entity treated as a member of such group by reason of this sentence).'.CommentsClose CommentsPermalink





(c) Effective Date- The amendment made by this section shall apply to services performed after the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 19. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAX.

The percentage under subparagraph (C) of section 401(1) of the Tax Increase Prevention and Reconciliation Act of 2005 in effect on the date of the enactment of this Act is increased by 0.25 percentage points.CommentsClose CommentsPermalink

SEC. 20 GAO STUDY ON HEALTH SAVINGS ACCOUNTS.

(a) In General- The Comptroller General of the United States shall conduct a study of the use of distributions from health savings accounts.CommentsClose CommentsPermalink





(b) Submission of Report- Not later than 1 year after the date of the enactment of this Act, the Comptroller General shall submit a report on the findings of the study conducted under subsection (a) and shall include therein recommendations (if any) relating to such findings. The report shall be submitted to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate.CommentsClose CommentsPermalink

Passed the House of Representatives April 15, 2008.CommentsClose CommentsPermalink

Attest:CommentsClose CommentsPermalink

Clerk.

110th CONGRESS2d SessionH. R. 5719AN ACTTo amend the Internal Revenue Code of 1986 to conform return preparer penalty standards, delay implementation of withholding taxes on government contractors, enhance taxpayer protections, assist low-income taxpayers, and for other purposes LORRAINE C. MILLER, CommentsClose CommentsPermalink

Clerk.CommentsClose CommentsPermalink