HR 5725 IHCommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to repeal taxes on the income of senior citizens and to improve income security of senior citizens.CommentsClose CommentsPermalink

July 13, 2010CommentsClose CommentsPermalink

Mr. POSEY (for himself and Mrs. BLACKBURN) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concernedCommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to repeal taxes on the income of senior citizens and to improve income security of senior citizens.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.

This Act may be cited as the ‘Senior Citizens Income Security Act of 2010’.CommentsClose CommentsPermalink

SEC. 2. REPEAL OF 1993 INCOME TAX INCREASE ON SOCIAL SECURITY BENEFITS.

(a) Restoration of Prior Law Formula- Subsection (a) of section 86 of the Internal Revenue Code of 1986 is amended to read as follows:CommentsClose CommentsPermalink





‘(a) In General- Gross income for the taxable year of any taxpayer described in subsection (b) (notwithstanding section 207 of the Social Security Act) includes Social Security benefits in an amount equal to the lesser of--CommentsClose CommentsPermalink





‘(1) one-half of the Social Security benefits received during the taxable year, orCommentsClose CommentsPermalink





‘(2) one-half of the excess described in subsection (b)(1).’.CommentsClose CommentsPermalink





(b) Repeal of Adjusted Base Amount- Subsection (c) of section 86 of such Code is amended to read as follows:CommentsClose CommentsPermalink





‘(c) Base Amount- For purposes of this section, the term ‘base amount’ means--CommentsClose CommentsPermalink





‘(1) except as otherwise provided in this subsection, $25,000,CommentsClose CommentsPermalink





‘(2) $32,000 in the case of a joint return, andCommentsClose CommentsPermalink





‘(3) zero in the case of a taxpayer who--CommentsClose CommentsPermalink





‘(A) is married as of the close of the taxable year (within the meaning of section 7703) but does not file a joint return for such year, andCommentsClose CommentsPermalink





‘(B) does not live apart from his spouse at all times during the taxable year.’.CommentsClose CommentsPermalink





(c) Conforming Amendments-CommentsClose CommentsPermalink





(1) Subparagraph (A) of section 871(a)(3) of such Code is amended by striking ‘85 percent’ and inserting ‘50 percent’.CommentsClose CommentsPermalink





(2)(A) Subparagraph (A) of section 121(e)(1) of the Social Security Amendments of 1983 (Public Law 98-21) is amended--CommentsClose CommentsPermalink





(i) by striking ‘(A) There’ and inserting ‘There’;CommentsClose CommentsPermalink





(ii) by striking ‘(i)’ immediately following ‘amounts equivalent to’; andCommentsClose CommentsPermalink





(iii) by striking ‘, less (ii)’ and all that follows and inserting a period.CommentsClose CommentsPermalink





(B) Paragraph (1) of section 121(e) of such Act is amended by striking subparagraph (B).CommentsClose CommentsPermalink





(C) Paragraph (3) of section 121(e) of such Act is amended by striking subparagraph (B) and by redesignating subparagraph (C) as subparagraph (B).CommentsClose CommentsPermalink





(D) Paragraph (2) of section 121(e) of such Act is amended in the first sentence by striking ‘paragraph (1)(A)’ and inserting ‘paragraph (1)’.CommentsClose CommentsPermalink





(d) Maintenance of Transfers to Hospital Insurance Trust Fund-CommentsClose CommentsPermalink





(1) IN GENERAL- There are hereby appropriated to the Hospital Insurance Trust Fund established under section 1817 of the Social Security Act amounts equal to the reduction in revenues to the Treasury by reason of the enactment of this section. Amounts appropriated by the preceding sentence shall be transferred from the general fund at such times and in such manner as to replicate to the extent possible the transfers which would have occurred to such Trust Fund had this section not been enacted.CommentsClose CommentsPermalink





(2) REPORTS- The Secretary of the Treasury or the Secretary’s delegate shall annually report to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate the amounts and timing of the transfers under this subsection.CommentsClose CommentsPermalink





(e) Effective Dates-CommentsClose CommentsPermalink





(1) IN GENERAL- Except as otherwise provided in this subsection, the amendments made by this section shall apply to taxable years beginning after December 31, 2009.CommentsClose CommentsPermalink





(2) SUBSECTION (c)(1)- The amendment made by subsection (c)(1) shall apply to benefits paid after December 31, 2009.CommentsClose CommentsPermalink





(3) SUBSECTION (c)(2)- The amendments made by subsection (c)(2) shall apply to tax liabilities for taxable years beginning after December 31, 2009.CommentsClose CommentsPermalink

SEC. 3. ELIMINATE MANDATORY WITHDRAWALS ON IRAS.

(a) In General- Subsection (a) of section 401 of the Internal Revenue Code of 1986 is amended by striking paragraph (9).CommentsClose CommentsPermalink





(b) Conforming Amendments-CommentsClose CommentsPermalink





(1) Section 403(b)(10) of such Code is amended by striking ‘ sections 401(a)(9)’ and inserting ‘ section’.CommentsClose CommentsPermalink





(2) Subsections (a)(6) and (b)(3) of section 408 of such Code are both amended by striking ‘section 401(a)(9) and’.CommentsClose CommentsPermalink





(3) Section 408A(c)(5) of such Code is amended to read as follows:CommentsClose CommentsPermalink





‘(5) MANDATORY DISTRIBUTION RULES NOT TO APPLY BEFORE DEATH- Notwithstanding subsections (a)(6) and (b)(3) of section 408 (relating to required distributions), the incidental death benefit requirements of section 401(a) shall not apply to any Roth IRA.’.CommentsClose CommentsPermalink





(4) Section 402(c) of such Code is amended--CommentsClose CommentsPermalink





(A) in paragraph (4) by striking subparagraph (B), by inserting ‘and’ at the end of subparagraph (A), and by redesignating subparagraph (C) as subparagraph (B), andCommentsClose CommentsPermalink





(B) in paragraph (11)(A)--CommentsClose CommentsPermalink





(i) by inserting ‘(as in effect on the day before the date of the enactment of this phrase)’ after ‘section 401(a)(9)(E)’, andCommentsClose CommentsPermalink





(ii) by inserting ‘and’ at the end of clause (i), by striking ‘, and’ at the end of clause (ii) and inserting a period, and by striking clause (iii).CommentsClose CommentsPermalink





(5) Section 409(d) of such Code is amended by striking ‘to any distribution required under section 401(a)(9) or’.CommentsClose CommentsPermalink





(6) Section 457(d) of such Code is amended--CommentsClose CommentsPermalink





(A) in paragraph (1) by striking subparagraph (B), by inserting ‘and’ at the end of subparagraph (A), and be redesignating subparagraph (C) as subparagraph (B), andCommentsClose CommentsPermalink





(B) by striking paragraph (2) and redesignating paragraph (3) as paragraph (2).CommentsClose CommentsPermalink





(7) Section 4974(b) of such Code is amended by striking ‘401(a)(9)’.CommentsClose CommentsPermalink

SEC. 4. ELIMINATE PAYROLL TAX FOR MEDICARE AND SOCIAL SECURITY BENEFICIARIES.

(a) In General- Section 3101 of the Internal Revenue Code of 1986 is amended by adding at the end the following:CommentsClose CommentsPermalink





‘(d) Exception- Subsections (a) and (b) shall not apply to any individual who--CommentsClose CommentsPermalink





‘(1) is entitled to benefits under part A of title XVIII of the Social Security Act or is enrolled under part B of such title, orCommentsClose CommentsPermalink





‘(2) is entitled to a monthly insurance benefit under title II of the Social Security Act based on such individual’s wages and self-employment income.’.CommentsClose CommentsPermalink





(b) Self-Employment- Section 1401 of such Code is amended by adding at the end the following new subsection:CommentsClose CommentsPermalink





‘(d) Exception- In the case of any individual who--CommentsClose CommentsPermalink





‘(1) is entitled to benefits under part A of title XVIII of the Social Security Act or is enrolled under part B of such title, orCommentsClose CommentsPermalink





‘(2) is entitled to a monthly insurance benefit under title II of the Social Security Act based on such individual’s wages and self-employment income,CommentsClose CommentsPermalink





subsections (a) and (b) shall be applied for the taxable year by substituting one-half of the percent otherwise specified in such subsections.’.CommentsClose CommentsPermalink





(c) Effective Dates-CommentsClose CommentsPermalink





(1) The amendment made by subsection (a) shall apply to wages paid after December 31, 2009.CommentsClose CommentsPermalink





(2) The amendment made by subsection (b) shall apply to enumeration paid in taxable years ending after the date of the enactment of this Act.CommentsClose CommentsPermalink





(d) Trust Funds Held Harmless- There is hereby appropriated (out of any money in the Treasury not otherwise appropriated) for each fiscal year to each fund under the Social Security Act an amount equal to the reduction in the transfers to such fund for such fiscal year by reason of the amendments made by this section.CommentsClose CommentsPermalink

SEC. 5. AUTHORITY TO ELECT VOUCHER PROGRAM INSTEAD OF MEDICARE PART A ENTITLEMENT.

(a) In General- Section 226 of the Social Security Act (42 U.S.C. 426) is amended by adding at the end the following new subsections:CommentsClose CommentsPermalink





‘(k) Waiver of Entitlement and Election of Voucher Program-CommentsClose CommentsPermalink





‘(1) IN GENERAL- Notwithstanding the previous provisions of this section, the Secretary shall establish a procedure under which an individual otherwise entitled under subsection (a) to benefits under part A of title XVIII may waive such entitlement and be automatically enrolled in the Medicare Alternative Voucher Program established under subsection (l) if--CommentsClose CommentsPermalink





‘(A) at the time such waiver is made the individual--CommentsClose CommentsPermalink





‘(i) has a health savings account described in subsection (d) of section 223 of the Internal Revenue Code of 1986; andCommentsClose CommentsPermalink





‘(ii) is enrolled under a high deductible health plan, as defined in subsection (c)(1) of such section; andCommentsClose CommentsPermalink





‘(B) the individual waives such entitlement during the individual’s initial enrollment period described in section 1837(d).CommentsClose CommentsPermalink





‘(2) TREATMENT UNDER THE INTERNAL REVENUE CODE OF 1986- An individual who waives entitlement under paragraph (1) shall not be treated as entitled to benefits under title XVIII for purposes of section 223(b)(7) of the Internal Revenue Code of 1986.CommentsClose CommentsPermalink





‘(3) INELIGIBILITY FOR PART B OR D BENEFITS- An individual shall not be eligible for benefits under part B or D of title XVIII during the period for which the individual waives entitlement under part A of such title under paragraph (1).CommentsClose CommentsPermalink





‘(4) TERMINATION OF WAIVER AND REENROLLMENT UNDER MEDICARE PROGRAM- The Secretary shall establish a procedure under which an individual who waives entitlement under paragraph (1) may terminate such waiver during an annual period that shall be the same as the annual general enrollment period described in section 1837(e). For purposes of applying parts B and D of title XVIII, such individual shall be treated as if the individual were entitled to benefits under part A of such title as of the date such individual terminates the waiver under this paragraph. An individual who has terminated such a waiver may not subsequently make such a waiver.CommentsClose CommentsPermalink





‘(l) Medicare Alternative Voucher Program-CommentsClose CommentsPermalink





‘(1) ESTABLISHMENT OF PROGRAM- The Secretary shall establish a program to be known as the Medicare Alternative Voucher Program (in this subsection referred to as the ‘voucher program’) consistent with this subsection.CommentsClose CommentsPermalink





‘(2) AUTOMATIC ENROLLMENT- An individual who waives entitlement under subsection (k)(1) shall be enrolled in the voucher program for the period during which such waiver is in effect.CommentsClose CommentsPermalink





‘(3) AMOUNT OF VOUCHER-CommentsClose CommentsPermalink





‘(A) AMOUNT BASED ON AGE COHORT-CommentsClose CommentsPermalink





‘(i) IN GENERAL- Subject to clause (ii), for each month that an individual within an age cohort is enrolled in the voucher program, the Secretary shall provide a voucher to such individual in an amount that is equal to the monthly actuarial rate for that month computed under section 1818(d)(1) multiplied by the age cohort adjustment factor for such age cohort under subparagraph (B).CommentsClose CommentsPermalink





‘(ii) MONTHLY LIMIT- The amount of a voucher provided to an individual for a month may not exceed $200.CommentsClose CommentsPermalink





‘(B) AGE COHORT ADJUSTMENT FACTOR- For each age cohort the Secretary shall determine an age cohort adjustment factor equal to the ratio of--CommentsClose CommentsPermalink





‘(i) the monthly actuarial rate described in section 1818(d)(1) as determined by the Secretary for individuals in such age cohort, toCommentsClose CommentsPermalink





‘(ii) the monthly actuarial rate described in such section.CommentsClose CommentsPermalink





‘(C) AGE COHORT DEFINED- For purposes of this paragraph, an ‘age cohort’ means a group of individuals whose age falls within a span of 5 consecutive years, consistent with the following:CommentsClose CommentsPermalink





‘(i) The first such span begins at age 65.CommentsClose CommentsPermalink





‘(ii) Other spans follow consecutively.CommentsClose CommentsPermalink





‘(4) PERMISSIBLE USE OF VOUCHER- A voucher under paragraph (3) may be used only for the following purposes:CommentsClose CommentsPermalink





‘(A) As a contribution into a health savings account established by such individual, as described in subsection (k)(1)(A).CommentsClose CommentsPermalink





‘(B) For payment of premiums for enrollment of such individual under a high deductible health plan described in such subsection.CommentsClose CommentsPermalink





‘(5) EFFECT OF SUBSEQUENT TERMINATION OF WAIVER- If an individual terminates a waiver under subsection (k)(3), the enrollment of such individual in the voucher program shall be terminated on the date on which the termination becomes effective.’.CommentsClose CommentsPermalink





(b) Amendment of Internal Revenue Code of 1986- Paragraph (7) of section 223(b) of the Internal Revenue Code of 1986 (relating to Medicare eligible individuals) is amended to read as follows:CommentsClose CommentsPermalink





‘(7) MEDICARE ELIGIBLE INDIVIDUALS-CommentsClose CommentsPermalink





‘(A) IN GENERAL- The limitation under this subsection for any month with respect to an individual shall be zero for any month such individual is entitled to benefits under title XVIII of the Social Security Act.CommentsClose CommentsPermalink





‘(B) MEDICARE ALTERNATIVE VOUCHER PROGRAM- In the case of an individual who is enrolled in the Medicare Alternative Voucher Program under section 226(l) of the Social Security Act, the applicable limitation under subparagraphs (A) and (B) of paragraph (2) shall be increased by the amount of the voucher described in paragraph (3) of such section which is contributed to a health savings account of such individual.’.CommentsClose CommentsPermalink





(c) Effective Date-CommentsClose CommentsPermalink





(1) IN GENERAL- The amendment made by subsection (a) shall take effect on the date that is six months after the date of the enactment of this Act and shall apply to an individual who becomes entitled to benefits under part A of title XVIII of the Social Security Act on or after such date of the enactment.CommentsClose CommentsPermalink





(2) AMENDMENT OF INTERNAL REVENUE CODE OF 1986- The amendment made by subsection (b) shall apply to months ending after the date referred to in paragraph (1), in taxable years ending after such date.CommentsClose CommentsPermalink

SEC. 6. PARTIAL EXCLUSION OF INTEREST, DIVIDENDS, AND CAPITAL GAINS RECEIVED BY INDIVIDUALS.

(a) In General- Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 (relating to amounts specifically excluded from gross income) is amended by inserting after section 115 the following new section:CommentsClose CommentsPermalink

‘SEC. 116. PARTIAL EXCLUSION FOR INTEREST, DIVIDENDS, AND CAPITAL GAINS RECEIVED BY INDIVIDUALS.

‘(a) In General- Gross income does not include the sum of amounts received during the taxable year by an individual as--CommentsClose CommentsPermalink





‘(1) dividends from a domestic corporation,CommentsClose CommentsPermalink





‘(2) interest, andCommentsClose CommentsPermalink





‘(3) capital gains.CommentsClose CommentsPermalink





‘(b) Limitation- The aggregate amount excluded under subsection (a) for any taxable year shall not exceed $250 ($500 in the case of a joint return), as identified by the taxpayer on the return of tax for such year.CommentsClose CommentsPermalink





‘(c) Interest- For purposes of this section, the term ‘interest’ means--CommentsClose CommentsPermalink





‘(1) interest on deposits with a bank (as defined in section 581),CommentsClose CommentsPermalink





‘(2) amounts (whether or not designated as interest) paid in respect of deposits, investment certificates, or withdrawable or repurchasable shares, by--CommentsClose CommentsPermalink





‘(A) a mutual savings bank, cooperative bank, domestic building and loan association, industrial loan association or bank, or credit union, orCommentsClose CommentsPermalink





‘(B) any other savings or thrift institution which is chartered and supervised under Federal or State law, the deposits or accounts in which are insured under Federal or State law or which are protected and guaranteed under State law,CommentsClose CommentsPermalink





‘(3) interest on--CommentsClose CommentsPermalink





‘(A) evidences of indebtedness (including bonds, debentures, notes, and certificates) issued by a domestic corporation in registered form, andCommentsClose CommentsPermalink





‘(B) to the extent provided in regulations prescribed by the Secretary, other evidences of indebtedness issued by a domestic corporation of a type offered by corporations to the public,CommentsClose CommentsPermalink





‘(4) interest on obligations of the United States, a State, or a political subdivision of a State (not excluded from gross income of the taxpayer under any other provision of law), andCommentsClose CommentsPermalink





‘(5) interest attributable to participation shares in a trust established and maintained by a corporation established pursuant to Federal law.CommentsClose CommentsPermalink





‘(d) Dividends- For purposes of this section, the term ‘dividend’ means qualified dividend income (as defined in paragraph (11)(B) of section 1(h)) (determined without regard to paragraph (13) thereof).CommentsClose CommentsPermalink





‘(e) Special Rules- For purposes of this section--CommentsClose CommentsPermalink





‘(1) DISTRIBUTIONS FROM REGULATED INVESTMENT COMPANIES AND REAL ESTATE INVESTMENT TRUSTS- Subsection (a) shall apply with respect to distributions by--CommentsClose CommentsPermalink





‘(A) regulated investment companies to the extent provided in section 854(c), andCommentsClose CommentsPermalink





‘(B) real estate investment trusts to the extent provided in section 857(c)(3).CommentsClose CommentsPermalink





‘(2) DISTRIBUTIONS BY A TRUST- For purposes of subsection (a), the amount of interest properly allocable to a beneficiary under section 652 or 662 shall be deemed to have been received by the beneficiary ratably on the same date that the interest was received by the estate or trust.CommentsClose CommentsPermalink





‘(3) CERTAIN NONRESIDENT ALIENS INELIGIBLE FOR EXCLUSION- In the case of a nonresident alien individual, subsection (a) shall apply only--CommentsClose CommentsPermalink





‘(A) in determining the tax imposed for the taxable year pursuant to section 871(b)(1) and only in respect of interest which are effectively connected with the conduct of a trade or business within the United States, orCommentsClose CommentsPermalink





‘(B) in determining the tax imposed for the taxable year pursuant to section 877(b).’.CommentsClose CommentsPermalink





(b) Conforming Amendments-CommentsClose CommentsPermalink





(1) The table of sections for part III of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 115 the following new item:CommentsClose CommentsPermalink





‘Sec. 116. Partial exclusion for interest, dividends, and capital gains received by individuals.’.CommentsClose CommentsPermalink





(2) Subsection (h) of section 1 of such Code is amended by adding at the end the following:CommentsClose CommentsPermalink





‘(13) COORDINATION WITH PARTIAL EXCLUSION FOR INTEREST, DIVIDENDS, AND CAPITAL GAINS RECEIVED BY INDIVIDUALS- For purposes of this section, dividends and capital gains excluded from gross income by section 116 shall not be taken into account.’.CommentsClose CommentsPermalink





(3) Paragraph (2) of section 265(a) of such Code is amended by inserting before the period at the end thereof the following: ‘, or to purchase or carry obligations or shares, or to make deposits, to the extent the interest thereon is excludable from gross income under section 116’.CommentsClose CommentsPermalink





(4) Subsection (c) of section 584 of such Code is amended by adding at the end thereof the following new sentence: ‘The proportionate share of each participant in the amount of interest received by the common trust fund and to which section 116 applies shall be considered for purposes of such section as having been received by such participant.’.CommentsClose CommentsPermalink





(5) Subsection (a) of section 643 of such Code is amended by redesignating paragraph (7) as paragraph (8) and by inserting after paragraph (6) the following new paragraph:CommentsClose CommentsPermalink





‘(7) INTEREST- There shall be included the amount of any interest excluded from gross income pursuant to section 116.’.CommentsClose CommentsPermalink





(6) Section 854 of such Code is amended by adding at the end thereof the following new subsection:CommentsClose CommentsPermalink





‘(c) Treatment Under Section 116 for Other Dividends and Taxable Interest-CommentsClose CommentsPermalink





‘(1) IN GENERAL- For purposes of section 116, in the case of any dividend (other than a dividend described in subsection (a)) received from a regulated investment company which meets the requirements of section 852 for the taxable year in which it paid the dividend--CommentsClose CommentsPermalink





‘(A) the entire amount of such dividend shall be treated as interest if the aggregate interest received by such company during the taxable year equals or exceeds 75 percent of its gross income,CommentsClose CommentsPermalink





‘(B) the entire amount of such dividend shall be treated as interest if the aggregate interest received by such company during the taxable year equals or exceeds 75 percent of its gross income, orCommentsClose CommentsPermalink





‘(C) if subparagraphs (A) and (B) do not apply, a portion of such dividend shall be treated as a dividend (and a portion of such dividend shall be treated as interest) based on the portion of the company’s gross income which consists of aggregate dividends or aggregate interest, as the case may be.CommentsClose CommentsPermalink





For purposes of the preceding sentence, gross income and aggregate interest received shall each be reduced by so much of the deduction allowable by section 163 for the taxable year as does not exceed aggregate interest received for the taxable year.CommentsClose CommentsPermalink





‘(2) NOTICE TO SHAREHOLDERS- The amount of any distribution by a regulated investment company which may be taken into account as a dividend and as interest for purposes of the exclusion under section 116 shall not exceed the amount so designated by the company in a written notice to its shareholders mailed not later than 45 days after the close of its taxable year.CommentsClose CommentsPermalink





‘(3) DEFINITIONS- For purposes of this subsection--CommentsClose CommentsPermalink





‘(A) The term ‘gross income’ does not include gain from the sale or other disposition of stock or securities.CommentsClose CommentsPermalink





‘(B) The term ‘aggregate dividends received’ includes only dividends described in section 116(d).CommentsClose CommentsPermalink





‘(C) The term ‘aggregate interest received’ includes only interest described in section 116(c).’.CommentsClose CommentsPermalink





(7) Subsection (c) of section 857 of such Code is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(3) TREATMENT AS INTEREST-CommentsClose CommentsPermalink





‘(A) IN GENERAL- For purposes of section 116, in the case of a dividend (other than a capital gain dividend, as defined in subsection (b)(3)(C)) received from a real estate investment trust which meets the requirements of this part for the taxable year in which it paid the dividend--CommentsClose CommentsPermalink





‘(i) such dividend shall be treated as interest if the aggregate interest received by the real estate investment trust for the taxable year equals or exceeds 75 percent of its gross income, orCommentsClose CommentsPermalink





‘(ii) if clause (i) does not apply, the portion of such dividend which bears the same ratio to the amount of such dividend as the aggregate interest received bears to gross income shall be treated as interest.CommentsClose CommentsPermalink





‘(B) ADJUSTMENTS TO GROSS INCOME AND AGGREGATE INTEREST RECEIVED- For purposes of paragraph (2)--CommentsClose CommentsPermalink





‘(i) gross income does not include the net capital gain,CommentsClose CommentsPermalink





‘(ii) gross income and aggregate interest received shall each be reduced by so much of the deduction allowable by section 163 for the taxable year (other than for interest on mortgages on real property owned by the real estate investment trust) as does not exceed aggregate interest received by the taxable year, andCommentsClose CommentsPermalink





‘(iii) gross income shall be reduced by the sum of the taxes imposed by paragraphs (4), (5), and (6) of section 857(b).CommentsClose CommentsPermalink





‘(C) AGGREGATE INTEREST RECEIVED- The term ‘aggregate interest received’ includes only interest described in section 116(c).CommentsClose CommentsPermalink





‘(D) NOTICE TO SHAREHOLDERS- The amount of any distribution by a real estate investment trust which may be taken into account as interest for purposes of the exclusion under section 116 shall not exceed the amount so designated by the trust in a written notice to its shareholders mailed not later than 45 days after the close of its taxable year.’.CommentsClose CommentsPermalink





(8) The heading for subsection (c) of section 857 of such Code is amended by inserting ‘and Interest’ after ‘Dividends’.CommentsClose CommentsPermalink





(c) Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2009.CommentsClose CommentsPermalink