PUBLIC LAW 114–74—NOV. 2, 2015 

BIPARTISAN BUDGET ACT OF 2015 


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129 STAT. 584 PUBLIC LAW 114–74—NOV. 2, 2015 

Public Law 114–74 

114th Congress 

An Act 

To amend the Internal Revenue Code of 1986 to provide for a right to an administrative appeal relating to adverse determinations of tax-exempt status of certain 

organizations. 

Be it enacted by the Senate and House of Representatives of 

the United States of America in Congress assembled, 

SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

(a) SHORT TITLE.—This Act may be cited as the ‘‘Bipartisan 

Budget Act of 2015’’. 

(b) TABLE OF CONTENTS.—The table of contents of this Act 

is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—BUDGET ENFORCEMENT 

Sec. 101. Amendments to the Balanced Budget and Emergency Deficit Control Act 

of 1985. 

Sec. 102. Authority for fiscal year 2017 budget resolution in the Senate. 

TITLE II—AGRICULTURE 

Sec. 201. Standard Reinsurance Agreement. 

TITLE III—COMMERCE 

Sec. 301. Debt collection improvements. 

TITLE IV—STRATEGIC PETROLEUM RESERVE 

Sec. 401. Strategic Petroleum Reserve test drawdown and sale notification and definition change. Sec. 402. Strategic Petroleum Reserve mission readiness optimization. 

Sec. 403. Strategic Petroleum Reserve drawdown and sale. 

Sec. 404. Energy Security and Infrastructure Modernization Fund. 

TITLE V—PENSIONS 

Sec. 501. Single employer plan annual premium rates. 

Sec. 502. Pension Payment Acceleration. 

Sec. 503. Mortality tables. 

Sec. 504. Extension of current funding stabilization percentages to 2018, 2019, and 

2020. 

TITLE VI—HEALTH CARE 

Sec. 601. Maintaining 2016 Medicare part B premium and deductible levels consistent with actuarially fair rates. Sec. 602. Applying the Medicaid additional rebate requirement to generic drugs. 

Sec. 603. Treatment of off-campus outpatient departments of a provider. 

Sec. 604. Repeal of automatic enrollment requirement. 

TITLE VII—JUDICIARY 

Sec. 701. Civil monetary penalty inflation adjustments. 

Sec. 702. Crime Victims Fund. 

Sec. 703. Assets Forfeiture Fund. 

TITLE VIII—SOCIAL SECURITY 

Sec. 801. Short title. 

26 USC 1 note. 

Bipartisan 

Budget Act 

of 2015. 

Nov. 2, 2015 

[H.R. 1314] 


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PUBLIC LAW 114–74—NOV. 2, 2015 129 STAT. 585 

Subtitle A—Ensuring Correct Payments and Reducing Fraud 

Sec. 811. Expansion of cooperative disability investigations units. 

Sec. 812. Exclusion of certain medical sources of evidence. 

Sec. 813. New and stronger penalties. 

Sec. 814. References to Social Security and Medicare in electronic communications. 

Sec. 815. Change to cap adjustment authority. 

Subtitle B—Promoting Opportunity for Disability Beneficiaries 

Sec. 821. Temporary reauthorization of disability insurance demonstration project 

authority. 

Sec. 822. Modification of demonstration project authority. 

Sec. 823. Promoting opportunity demonstration project. 

Sec. 824. Use of electronic payroll data to improve program administration. 

Sec. 825. Treatment of earnings derived from services. 

Sec. 826. Electronic reporting of earnings. 

Subtitle C—Protecting Social Security Benefits 

Sec. 831. Closure of unintended loopholes. 

Sec. 832. Requirement for medical review. 

Sec. 833. Reallocation of payroll tax revenue. 

Sec. 834. Access to financial information for waivers and adjustments of recovery. 

Subtitle D—Relieving Administrative Burdens and Miscellaneous Provisions 

Sec. 841. Interagency coordination to improve program administration. 

Sec. 842. Elimination of quinquennial determinations relating to wage credits for 

military service prior to 1957. 

Sec. 843. Certification of benefits payable to a divorced spouse of a railroad worker 

to the Railroad Retirement Board. 

Sec. 844. Technical amendments to eliminate obsolete provisions. 

Sec. 845. Reporting requirements to Congress. 

Sec. 846. Expedited examination of administrative law judges. 

TITLE IX—TEMPORARY EXTENSION OF PUBLIC DEBT LIMIT 

Sec. 901. Temporary extension of public debt limit. 

Sec. 902. Restoring congressional authority over the national debt. 

TITLE X—SPECTRUM PIPELINE 

Sec. 1001. Short title. 

Sec. 1002. Definitions. 

Sec. 1003. Rule of construction. 

Sec. 1004. Identification, reallocation, and auction of Federal spectrum. 

Sec. 1005. Additional uses of Spectrum Relocation Fund. 

Sec. 1006. Plans for auction of certain spectrum. 

Sec. 1007. FCC auction authority. 

Sec. 1008. Reports to Congress. 

TITLE XI—REVENUE PROVISIONS RELATED TO TAX COMPLIANCE 

Sec. 1101. Partnership audits and adjustments. 

Sec. 1102. Partnership interests created by gift. 

TITLE XII—DESIGNATION OF SMALL HOUSE ROTUNDA 

Sec. 1201. Designating small House rotunda as ‘‘Freedom Foyer’’. 

TITLE I—BUDGET ENFORCEMENT 

SEC. 101. AMENDMENTS TO THE BALANCED BUDGET AND EMERGENCY 

DEFICIT CONTROL ACT OF 1985. 

(a) REVISED DISCRETIONARY SPENDING LIMITS.—Section 251(c) 

of the Balanced Budget and Emergency Deficit Control Act of 1985 

(2 U.S.C. 901(c)) is amended by striking paragraphs (3) and (4) 

and inserting the following: 

‘‘(3) for fiscal year 2016— 

‘‘(A) for the revised security category, $548,091,000,000 

in new budget authority; and 

‘‘(B) for the revised nonsecurity category 

$518,491,000,000 in new budget authority; 


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129 STAT. 586 PUBLIC LAW 114–74—NOV. 2, 2015 

‘‘(4) for fiscal year 2017— 

‘‘(A) for the revised security category, $551,068,000,000 

in new budget authority; and 

‘‘(B) for the revised nonsecurity category, 

$518,531,000,000 in new budget authority;’’. 

(b) DIRECT SPENDING ADJUSTMENTS FOR FISCAL YEARS 2016 

AND 2017.—Section 251A of the Balanced Budget and Emergency 

Deficit Control Act of 1985 (2 U.S.C. 901a), is amended— 

(1) in paragraph (5)(B), by striking ‘‘paragraph (10)’’ and 

inserting ‘‘paragraphs (10) and (11)’’; and 

(2) by adding at the end the following: 

‘‘(11) IMPLEMENTING DIRECT SPENDING REDUCTIONS FOR

FISCAL YEARS 2016 AND 2017.—(A) OMB shall make the calculations necessary to implement the direct spending reductions 

calculated pursuant to paragraphs (3) and (4) without regard 

to the amendment made to section 251(c) revising the discretionary spending limits for fiscal years 2016 and 2017 by the 

Bipartisan Budget Act of 2015. 

‘‘(B) Paragraph (5)(B) shall not be implemented for fiscal 

years 2016 and 2017.’’. 

(c) EXTENSION OF DIRECT SPENDING REDUCTIONS FOR FISCAL

YEAR 2025.—Section 251A(6) of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 901a(6)) is amended— 

(1) in subparagraph (B), in the matter preceding clause 

(i), by striking ‘‘and for fiscal year 2024’’ and by inserting 

‘‘for fiscal year 2024, and for fiscal year 2025’’; 

(2) by striking subparagraph (C) and redesignating 

subparagraph (D) as subparagraph (C); and 

(3) in subparagraph (C) (as so redesignated), by striking 

‘‘fiscal year 2024’’ and inserting ‘‘fiscal year 2025’’. 

(d) OVERSEAS CONTINGENCY OPERATIONS AMOUNTS.—In fiscal 

years 2016 and 2017, the adjustments under section 251(b)(2)(A) 

of the Balanced Budget and Emergency Deficit Control Act of 1985 

(2 U.S.C. 901(b)(2)(A)) for Overseas Contingency Operations/Global 

War on Terrorism appropriations will be as follows: 

(1) For budget function 150— 

(A) for fiscal year 2016, $14,895,000,000; and 

(B) for fiscal year 2017, $14,895,000,000. 

(2) For budget function 050— 

(A) for fiscal year 2016, $58,798,000,000; and 

(B) for fiscal year 2017, $58,798,000,000. 

This subsection shall not affect the applicability of section 

251(b)(2)(A) of the Balanced Budget and Emergency Deficit Control 

Act of 1985. 

SEC. 102. AUTHORITY FOR FISCAL YEAR 2017 BUDGET RESOLUTION 

IN THE SENATE. 

(a) FISCAL YEAR 2017.—For the purpose of enforcing the 

Congressional Budget Act of 1974, after April 15, 2016, and 

enforcing budgetary points of order in prior concurrent resolutions 

on the budget, the allocations, aggregates, and levels provided for 

in subsection (b) shall apply in the Senate in the same manner 

as for a concurrent resolution on the budget for fiscal year 2017 

with appropriate budgetary levels for fiscal years 2018 through 

2026. 

Applicability. 


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PUBLIC LAW 114–74—NOV. 2, 2015 129 STAT. 587 

(b) COMMITTEE ALLOCATIONS, AGGREGATES, AND LEVELS.—After 

April 15, 2016, but not later than May 15, 2016, the Chairman 

of the Committee on the Budget of the Senate shall file— 

(1) for the Committee on Appropriations, committee allocations for fiscal year 2017 consistent with discretionary spending 

limits set forth in section 251(c)(4) of the Balanced Budget 

and Emergency Deficit Control Act of 1985, as amended by 

this Act, for the purpose of enforcing section 302 of the Congressional Budget Act of 1974; 

(2) for all committees other than the Committee on Appropriations, committee allocations for fiscal years 2017, 2017 

through 2021, and 2017 through 2026 consistent with the most 

recent baseline of the Congressional Budget Office, as adjusted 

for the budgetary effects of any provision of law enacted during 

the period beginning on the date such baseline is issued and 

ending on the date of submission of such statement, for the 

purpose of enforcing section 302 of the Congressional Budget 

Act of 1974; 

(3) aggregate spending levels for fiscal year 2017 in accordance with the allocations established under paragraphs (1) 

and (2), for the purpose of enforcing section 311 of the Congressional Budget Act of 1974; 

(4) aggregate revenue levels for fiscal years 2017, 2017 

through 2021, and 2017 through 2026 consistent with the most 

recent baseline of the Congressional Budget Office, as adjusted 

for the budgetary effects of any provision of law enacted during 

the period beginning on the date such baseline is issued and 

ending on the date of submission of such statement, for the 

purpose of enforcing section 311 of the Congressional Budget 

Act of 1974; and 

(5) levels of Social Security revenues and outlays for fiscal 

years 2017, 2017 through 2021, and 2017 through 2026 consistent with the most recent baseline of the Congressional 

Budget Office, as adjusted for the budgetary effects of any 

provision of law enacted during the period beginning on the 

date such baseline is issued and ending on the date of submission of such statement, for the purpose of enforcing sections 

302 and 311 of the Congressional Budget Act of 1974. 

(c) ADDITIONAL MATTER.—The filing referred to in subsection 

(b) may also include for fiscal year 2017 the matter contained 

in subtitles A and B of title IV of S. Con. Res. 11 (114th Congress) 

updated by 1 fiscal year. 

(d) EXPIRATION.—This section shall expire if a concurrent resolution on the budget for fiscal year 2017 is agreed to by the Senate 

and the House of Representatives pursuant to section 301 of the 

Congressional Budget Act of 1974. 

TITLE II—AGRICULTURE 

SEC. 201. STANDARD REINSURANCE AGREEMENT. 

Section 508(k)(8) of the Federal Crop Insurance Act (7 U.S.C. 

1508(k)(8)) is amended— 

(1) in subparagraph (A), in the matter preceding clause 

(i), by striking ‘‘may renegotiate’’ and all that follows through 

Deadlines. 

Time period. 


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129 STAT. 588 PUBLIC LAW 114–74—NOV. 2, 2015 

the end of clause (ii) and inserting the following: ‘‘shall renegotiate the financial terms and conditions of each Standard 

Reinsurance Agreement— 

‘‘(i) not later than December 31, 2016; and 

‘‘(ii) not less than once during each period of 5 

reinsurance years thereafter.’’; and 

(2) by striking subparagraph (E) and inserting the following: 

‘‘(E) CAP ON OVERALL RATE OF RETURN.—Notwithstanding subparagraph (F), the Board shall ensure that 

the Standard Reinsurance Agreement renegotiated under 

subparagraph (A)(i) establishes a target rate of return for 

the approved insurance providers, taken as a whole, that 

does not exceed 8.9 percent of retained premium for each 

of the 2017 through 2026 reinsurance years.’’. 

TITLE III—COMMERCE 

SEC. 301. DEBT COLLECTION IMPROVEMENTS. 

(a) IN GENERAL.—Section 227(b) of the Communications Act 

of 1934 (47 U.S.C. 227(b)) is amended— 

(1) in paragraph (1)— 

(A) in subparagraph (A)(iii), by inserting ‘‘, unless such 

call is made solely to collect a debt owed to or guaranteed 

by the United States’’ after ‘‘charged for the call’’; and 

(B) in subparagraph (B), by inserting ‘‘, is made solely 

pursuant to the collection of a debt owed to or guaranteed 

by the United States,’’ after ‘‘purposes’’; and 

(2) in paragraph (2)— 

(A) in subparagraph (F), by striking ‘‘and’’ at the end; 

(B) in subparagraph (G), by striking the period at 

the end and inserting ‘‘; and’’; and 

(C) by adding at the end the following: 

‘‘(H) may restrict or limit the number and duration 

of calls made to a telephone number assigned to a cellular 

telephone service to collect a debt owed to or guaranteed 

by the United States.’’. 

(b) DEADLINE FOR REGULATIONS.—Not later than 9 months 

after the date of enactment of this Act, the Federal Communications 

Commission, in consultation with the Department of the Treasury, 

shall prescribe regulations to implement the amendments made 

by this section. 

TITLE IV—STRATEGIC PETROLEUM 

RESERVE 

SEC. 401. STRATEGIC PETROLEUM RESERVE TEST DRAWDOWN AND 

SALE NOTIFICATION AND DEFINITION CHANGE. 

(a) NOTICE TO CONGRESS.—Section 161(g) of the Energy Policy 

and Conservation Act (42 U.S.C. 6241(g)) is amended by striking 

paragraph (8) and inserting the following: 

‘‘(8) NOTICE TO CONGRESS.— ‘‘(A) PRIOR NOTICE.—Not less than 14 days before the 

date on which a test is carried out under this subsection, 

Deadline. 

Consultation. 

47 USC 227 note. 

Deadline. 


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PUBLIC LAW 114–74—NOV. 2, 2015 129 STAT. 589 

the Secretary shall notify both Houses of Congress of the 

test. 

‘‘(B) EMERGENCY.—The prior notice requirement in 

subparagraph (A) shall not apply if the Secretary determines that an emergency exists which requires a test to 

be carried out, in which case the Secretary shall notify 

both Houses of Congress of the test as soon as possible. 

‘‘(C) DETAILED DESCRIPTION.— ‘‘(i) IN GENERAL.—Not later than 180 days after 

the date on which a test is completed under this subsection, the Secretary shall submit to both Houses 

of Congress a detailed description of the test. 

‘‘(ii) REPORT.—A detailed description submitted 

under clause (i) may be included as part of a report 

made to the President and Congress under section 

165.’’. 

(b) DEFINITION CHANGE.—Section 3(8)(C)(iii) of the Energy 

Policy and Conservation Act (42 U.S.C. 6202(8)(C)(iii)) is amended 

by striking ‘‘sabotage or an act of God’’ and inserting ‘‘sabotage, 

an act of terrorism, or an act of God’’. 

SEC. 402. STRATEGIC PETROLEUM RESERVE MISSION READINESS 

OPTIMIZATION. 

Not later than 180 days after the date of enactment of this 

Act, the Secretary shall— 

(1) complete a long-range strategic review of the Strategic 

Petroleum Reserve; and 

(2) develop and submit to Congress a proposed action plan, 

including a proposed implementation schedule, that— 

(A) specifies near- and long-term roles of the Strategic 

Petroleum Reserve relative to the energy and economic 

security goals and objectives of the United States; 

(B) describes whether existing legal authorities that 

govern the policies, configuration, and capabilities of the 

Strategic Petroleum Reserve are adequate to ensure that 

the Strategic Petroleum Reserve can meet the current and 

future energy and economic security goals and objectives 

of the United States; 

(C) identifies the configuration and performance 

capabilities of the Strategic Petroleum Reserve and recommends an action plan to achieve the optimal— 

(i) capacity, location, and composition of petroleum 

products in the Strategic Petroleum Reserve; and 

(ii) storage and distributional capabilities; and 

(D) estimates the resources required to attain and 

maintain the long-term sustainability and operational 

effectiveness of the Strategic Petroleum Reserve. 

SEC. 403. STRATEGIC PETROLEUM RESERVE DRAWDOWN AND SALE. 

(a) DRAWDOWN AND SALE.—Notwithstanding section 161 of the 

Energy Policy and Conservation Act (42 U.S.C. 6241), except as 

provided in subsection (b), the Secretary of Energy shall draw 

down and sell— 

(1) 5,000,000 barrels of crude oil from the Strategic Petroleum Reserve during fiscal year 2018; 

(2) 5,000,000 barrels of crude oil from the Strategic Petroleum Reserve during fiscal year 2019; 

42 USC 6241. 

Deadline. 

Strategic review. 

Plans. 

Proposed 

schedule. 

Deadline. 

Determination. 


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129 STAT. 590 PUBLIC LAW 114–74—NOV. 2, 2015 

(3) 5,000,000 barrels of crude oil from the Strategic Petroleum Reserve during fiscal year 2020; 

(4) 5,000,000 barrels of crude oil from the Strategic Petroleum Reserve during fiscal year 2021; 

(5) 8,000,000 barrels of crude oil from the Strategic Petroleum Reserve during fiscal year 2022; 

(6) 10,000,000 barrels of crude oil from the Strategic Petroleum Reserve during fiscal year 2023; 

(7) 10,000,000 barrels of crude oil from the Strategic Petroleum Reserve during fiscal year 2024; and 

(8) 10,000,000 barrels of crude oil from the Strategic Petroleum Reserve during fiscal year 2025. 

(b) EMERGENCY PROTECTION.—The Secretary shall not draw 

down and sell crude oil under this section in amounts that would 

limit the authority to sell petroleum products under section 161(h) 

of the Energy Policy and Conservation Act (42 U.S.C. 6241(h)) 

in the full amount authorized by that subsection. 

(c) PROCEEDS.—Proceeds from a sale under this section shall 

be deposited into the general fund of the Treasury during the 

fiscal year in which the sale occurs. 

SEC. 404. ENERGY SECURITY AND INFRASTRUCTURE MODERNIZATION 

FUND. 

(a) ESTABLISHMENT.—There is hereby established in the 

Treasury of the United States a fund to be known as the Energy 

Security and Infrastructure Modernization Fund (referred to in 

this section as the ‘‘Fund’’), consisting of— 

(1) collections deposited in the Fund under subsection (c); 

and 

(2) amounts otherwise appropriated to the Fund. 

(b) PURPOSE.—The purpose of the Fund is to provide for the 

construction, maintenance, repair, and replacement of Strategic 

Petroleum Reserve facilities. 

(c) COLLECTION AND DEPOSIT OF SALE PROCEEDS IN FUND.— 

(1) DRAWDOWN AND SALE.—Notwithstanding section 161 

of the Energy Policy and Conservation Act (42 U.S.C. 6241), 

to the extent provided in advance in appropriation Acts, the 

Secretary of Energy shall draw down and sell crude oil from 

the Strategic Petroleum Reserve in amounts as authorized 

under subsection (e), except as provided in paragraph (2). 

Amounts received for a sale under this paragraph shall be 

deposited into the Fund during the fiscal year in which the 

sale occurs. Such amounts shall remain available in the Fund 

without fiscal year limitation. 

(2) EMERGENCY PROTECTION.—The Secretary shall not draw 

down and sell crude oil under this subsection in amounts that 

would limit the authority to sell petroleum products under 

section 161(h) of the Energy Policy and Conservation Act (42 

U.S.C. 6241(h)) in the full amount authorized by that subsection. 

(d) AUTHORIZED USES OF FUND.— (1) IN GENERAL.—Amounts in the Fund may be used for, 

or may be credited as offsetting collections for amounts used 

for, carrying out the program described in paragraph (2)(B), 

to the extent provided in advance in appropriation Acts. 

(2) PROGRAM TO MODERNIZE THE STRATEGIC PETROLEUM

RESERVE.— 

42 USC 6239 

note. 


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PUBLIC LAW 114–74—NOV. 2, 2015 129 STAT. 591 

(A) FINDINGS.—Congress finds the following: 

(i) The Strategic Petroleum Reserve is one of the 

Nation’s most valuable energy security assets. 

(ii) The age and condition of the Strategic Petroleum Reserve have diminished its value as a Federal 

energy security asset. 

(iii) Global oil markets and the location and 

amount of United States oil production and refining 

capacity have dramatically changed in the 40 years 

since the establishment of the Strategic Petroleum 

Reserve. 

(iv) Maximizing the energy security value of the 

Strategic Petroleum Reserve requires a modernized 

infrastructure that meets the drawdown and distribution needs of changed domestic and international oil 

and refining market conditions. 

(B) PROGRAM.—The Secretary of Energy shall establish 

a Strategic Petroleum Reserve modernization program to 

protect the United States economy from the impacts of 

emergency product supply disruptions. The program may 

include— 

(i) operational improvements to extend the useful 

life of surface and subsurface infrastructure; 

(ii) maintenance of cavern storage integrity; and 

(iii) addition of infrastructure and facilities to optimize the drawdown and incremental distribution 

capacity of the Strategic Petroleum Reserve. 

(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 

to be appropriated (and drawdowns and sales under subsection 

(c) in an equal amount are authorized) for carrying out subsection 

(d)(2)(B), $2,000,000,000 for the period encompassing fiscal years 

2017 through 2020. 

(f) TRANSMISSION OF DEPARTMENT BUDGET REQUESTS.—The 

Secretary of Energy shall prepare and submit in the Department’s 

annual budget request to Congress— 

(1) an itemization of the amounts of funds necessary to 

carry out subsection (d); and 

(2) a designation of any activities thereunder for which 

a multiyear budget authority would be appropriate. 

(g) SUNSET.—The authority of the Secretary to draw down 

and sell crude oil from the Strategic Petroleum Reserve under 

this section shall expire at the end of fiscal year 2020. 

TITLE V—PENSIONS 

SEC. 501. SINGLE EMPLOYER PLAN ANNUAL PREMIUM RATES. 

(a) FLAT-RATE PREMIUM.— 

(1) IN GENERAL.—Section 4006(a)(3)(A)(i) of the Employee 

Retirement Income Security Act of 1974 (29 U.S.C. 

1306(a)(3)(A)(i)) is amended by striking ‘‘and’’ at the end of 

subclause (IV), by striking the period at the end of subclause 

(V) and inserting a semicolon, and by inserting after subclause 

(V) the following: 

‘‘(VI) for plan years beginning after December 

31, 2016, and before January 1, 2018, $69; 

Time periods. 


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129 STAT. 592 PUBLIC LAW 114–74—NOV. 2, 2015 

‘‘(VII) for plan years beginning after December 

31, 2017, and before January 1, 2019, $74; and 

‘‘(VIII) for plan years beginning after 

December 31, 2018, $80.’’. 

(2) PREMIUM RATES AFTER 2019.—Section 4006(a)(3)(G) of 

such Act (29 U.S.C. 1306(a)(3)(G)) is amended— 

(A) in the matter preceding clause (i), by striking 

‘‘2016’’ and inserting ‘‘2019’’; and 

(B) in clause (i)(II) by striking ‘‘2014’’ and inserting 

‘‘2017’’. 

(b) VARIABLE-RATE PREMIUM INCREASES.— 

(1) IN GENERAL.—Section 4006(a)(8)(C) of such Act (29 

U.S.C. 1306(a)(8)(C)) is amended— 

(A) in the subparagraph heading, by striking ‘‘increase 

in 2014 and 2015’’ and inserting ‘‘increases’’; 

(B) in clause (ii), by striking ‘‘and’’ at the end; 

(C) in clause (iii), by striking the period at the end 

and inserting a semicolon; and 

(D) by adding at the end the following: 

‘‘(iv) in the case of plan years beginning in calendar 

year 2017, by $3; 

‘‘(v) in the case of plan years beginning in calendar 

year 2018, by $4; and 

‘‘(vi) in the case of plan years beginning in calendar 

year 2019, by $4.’’. 

(2) CONFORMING AMENDMENTS.—Section 4006(a)(8) of such 

Act (29 U.S.C. 1306(a)(8)) is amended— 

(A) in subparagraph (A)— 

(i) in clause (iii), by striking ‘‘and’’ at the end; 

(ii) in clause (iv), by striking the period at the 

end and inserting a semicolon; and 

(iii) by adding at the end the following: 

‘‘(v) for plan years beginning after calendar year 

2017, the amount in effect for plan years beginning 

in 2017 (determined after application of subparagraph 

(C)); 

‘‘(vi) for plan years beginning after calendar year 

2018, the amount in effect for plan years beginning 

in 2018 (determined after application of subparagraph 

(C)); and 

‘‘(vii) for plan years beginning after calendar year 

2019, the amount in effect for plan years beginning 

in 2019 (determined after application of subparagraph 

(C)).’’; and 

(B) in subparagraph (D)— 

(i) in clause (iii), by striking ‘‘and’’ at the end; 

(ii) in clause (iv), by striking the period at the 

end and inserting a semicolon; and 

(iii) by adding at the end the following: 

‘‘(v) 2015, in the case of plan years beginning after 

calendar year 2017; 

‘‘(vi) 2016, in the case of plan years beginning 

after calendar year 2018; and 

‘‘(vii) 2017, in the case of plan years beginning 

after calendar year 2019.’’. 


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PUBLIC LAW 114–74—NOV. 2, 2015 129 STAT. 593 

(3) EFFECTIVE DATE.—The amendments made by this section shall apply to plan years beginning after December 31, 

2016. 

SEC. 502. PENSION PAYMENT ACCELERATION. 

Notwithstanding section 4007(a) of the Employee Retirement 

Income Security Act of 1974 (29 U.S.C. 1307(a)) and section 4007.11 

of title 29, Code of Federal Regulations, for plan years commencing 

after December 31, 2024, and before January 1, 2026, the premium 

due date for such plan years shall be the fifteenth day of the 

ninth calendar month that begins on or after the first day of 

the premium payment year. 

SEC. 503. MORTALITY TABLES. 

(a) CREDIBILITY.—For purposes of subclause (I) of section 

430(h)(3)(C)(iii) of the Internal Revenue Code of 1986 and subclause 

(I) of section 303(h)(3)(C)(iii) of the Employee Retirement Income 

Security Act of 1974, the determination of whether plans have 

credible information shall be made in accordance with established 

actuarial credibility theory, which— 

(1) is materially different from rules under such section 

of such Code, including Revenue Procedure 2007–37, that are 

in effect on the date of the enactment of this Act; and 

(2) permits the use of tables that reflect adjustments to 

the tables described in subparagraphs (A) and (B) of section 

430(h)(3) of such Code, and subparagraphs (A) and (B) of section 

303(h)(3) of such Act, if such adjustments are based on the 

experience described in subclause (II) of section 430(h)(3)(C)(iii) 

of such Code and in subclause (II) of section 303(h)(3)(C)(iii) 

of such Act. 

(b) EFFECTIVE DATE.—This section shall apply to plan years 

beginning after December 31, 2015. 

SEC. 504. EXTENSION OF CURRENT FUNDING STABILIZATION 

PERCENTAGES TO 2018, 2019, AND 2020. 

(a) FUNDING STABILIZATION UNDER THE INTERNAL REVENUE

CODE OF 1986.—The table in subclause (II) of section 

430(h)(2)(C)(iv) of the Internal Revenue Code of 1986 is amended 

to read as follows: 

‘‘If the calendar year 

is: 

The applicable minimum percentage is: The applicable maximum percentage is: 

2012, 2013, 2014, 

2015, 2016, 2017, 

2018, 2019, or 

2020.

90% ........................... 110% 

2021 .......................... 85% ........................... 115% 

2022 .......................... 80% ........................... 120% 

2023 .......................... 75% ........................... 125% 

After 2023 ................ 70% ........................... 130%’’. 

(b) FUNDING STABILIZATION UNDER EMPLOYEE RETIREMENT

INCOME SECURITY ACT OF 1974.— 

(1) IN GENERAL.—The table in subclause (II) of section 

303(h)(2)(C)(iv) of the Employee Retirement Income Security 

26 USC 430. 

Determination. 

26 USC 430 note. 

Time periods. 

29 USC 1307 

note. 

29 USC 1306 

note. 


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129 STAT. 594 PUBLIC LAW 114–74—NOV. 2, 2015 

Act of 1974 (29 U.S.C. 1083(h)(2)(C)(iv)) is amended to read 

as follows: 

‘‘If the calendar year 

is: 

The applicable minimum percentage is: The applicable maximum percentage is: 

2012, 2013, 2014, 

2015, 2016, 2017, 

2018, 2019, or 

2020.

90% ........................... 110% 

2021 .......................... 85% ........................... 115% 

2022 .......................... 80% ........................... 120% 

2023 .......................... 75% ........................... 125% 

After 2023 ................ 70% ........................... 130%’’. 

(2) CONFORMING AMENDMENTS.— 

(A) IN GENERAL.—Section 101(f)(2)(D) of such Act (29 

U.S.C. 1021(f)(2)(D)) is amended— 

(i) in clause (i) by striking ‘‘and the Highway and 

Transportation Funding Act of 2014’’ both places it 

appears and inserting ‘‘, the Highway and Transportation Funding Act of 2014, and the Bipartisan Budget 

Act of 2015’’; and 

(ii) in clause (ii) by striking ‘‘2020’’ and inserting 

‘‘2023’’. 

(B) STATEMENTS.—The Secretary of Labor shall modify 

the statements required under subclauses (I) and (II) of 

section 101(f)(2)(D)(i) of such Act to conform to the amendments made by this section. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall apply with respect to plan years beginning after December 

31, 2015. 

TITLE VI—HEALTH CARE 

SEC. 601. MAINTAINING 2016 MEDICARE PART B PREMIUM AND 

DEDUCTIBLE LEVELS CONSISTENT WITH ACTUARIALLY 

FAIR RATES. 

(a) 2016 PREMIUM AND DEDUCTIBLE AND REPAYMENT THROUGH

FUTURE PREMIUMS.—Section 1839(a) of the Social Security Act (42 

U.S.C. 1395r(a)) is amended— 

(1) in the second sentence of paragraph (1), by striking 

‘‘Such’’ and inserting ‘‘Subject to paragraphs (5) and (6), such’’; 

and 

(2) by adding at the end the following: 

‘‘(5)(A) In applying this part (including subsection (i) and section 

1833(b)), the monthly actuarial rate for enrollees age 65 and over 

for 2016 shall be determined as if subsection (f) did not apply. 

‘‘(B) Subsection (f) shall continue to be applied to paragraph 

(6)(A) (during a repayment month, as described in paragraph (6)(B)) 

and without regard to the application of subparagraph (A). 

‘‘(6)(A) With respect to a repayment month (as described in 

subparagraph (B)), the monthly premium otherwise established 

under paragraph (3) shall be increased by, subject to subparagraph 

(D), $3. 

Applicability. 

26 USC 430 note. 


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PUBLIC LAW 114–74—NOV. 2, 2015 129 STAT. 595 

‘‘(B) For purposes of this paragraph, a repayment month is 

a month during a year, beginning with 2016, for which a balance 

due amount is computed under subparagraph (C) as greater than 

zero. 

‘‘(C) For purposes of this paragraph, the balance due amount 

computed under this subparagraph, with respect to a month, is 

the amount estimated by the Chief Actuary of the Centers for 

Medicare & Medicaid Services to be equal to— 

‘‘(i) the amount transferred under section 1844(d)(1); plus 

‘‘(ii) the amount that is equal to the aggregate reduction, 

for all individuals enrolled under this part, in the income 

related monthly adjustment amount as a result of the application of paragraph (5); minus 

‘‘(iii) the amounts payable under this part as a result 

of the application of this paragraph for preceding months. 

‘‘(D) If the balance due amount computed under subparagraph 

(C), without regard to this subparagraph, for December of a year 

would be less than zero, the Chief Actuary of the Centers for 

Medicare & Medicaid Services shall estimate, and the Secretary 

shall apply, a reduction to the dollar amount increase applied 

under subparagraph (A) for each month during such year in a 

manner such that the balance due amount for January of the 

subsequent year is equal to zero.’’. 

(b) TRANSITIONAL GOVERNMENT CONTRIBUTION.—Section 1844 

of the Social Security Act (42 U.S.C. 1395w) is amended— 

(1) in subsection (a), by adding at the end the following: 

‘‘In applying paragraph (1), the amounts transferred under subsection (d)(1) with respect to enrollees described in subparagraphs 

(A) and (B) of such subsection shall be treated as premiums payable 

and deposited in the Trust Fund under subparagraphs (A) and 

(B), respectively, of paragraph (1).’’; and 

(2) by adding at the end the following: 

‘‘(d)(1) For 2016, there shall be transferred from the General 

Fund to the Trust Fund an amount, as estimated by the Chief 

Actuary of the Centers for Medicare & Medicaid Services, equal 

to the reduction in aggregate premiums payable under this part 

for a month in such year (excluding any changes in amounts collected under section 1839(i)) that is attributable to the application 

of section 1839(a)(5)(A) with respect to— 

‘‘(A) enrollees age 65 and over; and 

‘‘(B) enrollees under age 65. 

Such amounts shall be transferred from time to time as appropriate. 

‘‘(2) Premium increases affected under section 1839(a)(6) shall 

not be taken into account in applying subsection (a). 

‘‘(3) There shall be transferred from the Trust Fund to the 

General Fund of the Treasury amounts equivalent to the additional 

premiums payable as a result of the application of section 1839(a)(6), 

excluding the aggregate payments attributable to the application 

of section 1839(i)(3)(A)(ii)(II).’’. 

(c) CONFORMING APPLICATION OF HIGH INCOME ADJUSTMENTS

TO INCREASED MONTHLY PREMIUM IN SAME MANNER AS FOR REGULAR MEDICARE PREMIUMS.—Section 1839(i)(3)(A)(ii) of the Social 

Security Act (42 U.S.C. 1395r(i)(3)(A)(ii)) is amended— 

(1) by striking ‘‘AMOUNT.—200 percent’’ and inserting the 

following: ‘‘AMOUNT.— 

‘‘(I) 200 percent’’; and 

Applicability. 

Estimate. 

Applicability. 


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129 STAT. 596 PUBLIC LAW 114–74—NOV. 2, 2015 

(2) by striking the period at the end and inserting ‘‘; plus’’; 

and 

(3) by adding at the end the following new subclause: 

‘‘(II) 4 times the amount of the increase in 

the monthly premium under subsection (a)(6) for 

a month in the year.’’. 

(d) CONDITIONAL APPLICATION TO 2017 IF NO SOCIAL SECURITY

COLA FOR 2017.—If there is no increase in the monthly insurance 

benefits payable under title II with respect to December 2016 pursuant to section 215(i), then the amendments made by this section 

shall be applied as if— 

(1) the reference to ‘‘2016’’ in paragraph (5)(A) of section 

1839(a) of the Social Security Act (42 U.S.C. 1395r(a)), as 

added by subsection (a)(2), was a reference to ‘‘2016 and 2017’’; 

(2) the reference to ‘‘a month during a year, beginning 

with 2016’’ in paragraph (6)(B) of section 1839 of such Act 

(42 U.S.C. 1395r(a)), as added by subsection (a)(2), was a reference to ‘‘a month in a year, beginning with 2016 and beginning with 2017, respectively’’; and 

(3) the reference to ‘‘2016’’ in subsection (d)(1) of section 

1844 of such Act (42 U.S.C. 1395w), as added by subsection 

(b)(2), was a reference to ‘‘each of 2016 and 2017’’. 

Any increase in premiums effected under this subsection shall be 

in addition to the increase effected by the amendments made by 

subsection (a). 

(e) CONSTRUCTION REGARDING NO AUTHORITY TO INITIATE

APPLICATION TO YEARS AFTER 2017.—Nothing in subsection (d) 

or the amendments made by this section shall be construed as 

authorizing the Secretary of Health and Human Services to initiate 

application of such subsection or amendments for a year after 

2017. 

SEC. 602. APPLYING THE MEDICAID ADDITIONAL REBATE REQUIREMENT TO GENERIC DRUGS. 

(a) IN GENERAL.—Section 1927(c)(3) of the Social Security Act 

(42 U.S.C. 1396r–8(c)(3)) is amended— 

(1) in subparagraph (A), by striking ‘‘The amount’’ and 

inserting ‘‘Except as provided in subparagraph (C), the 

amount’’; and 

(2) by adding at the end the following new subparagraph: 

‘‘(C) ADDITIONAL REBATE.— 

‘‘(i) IN GENERAL.—The amount of the rebate specified in this paragraph for a rebate period, with respect 

to each dosage form and strength of a covered outpatient drug other than a single source drug or an 

innovator multiple source drug of a manufacturer, shall 

be increased in the manner that the rebate for a dosage 

form and strength of a single source drug or an innovator multiple source drug is increased under subparagraphs (A) and (D) of paragraph (2), except as provided 

in clause (ii). 

‘‘(ii) SPECIAL RULES FOR APPLICATION OF PROVISION.—In applying subparagraphs (A) and (D) of paragraph (2) under clause (i)— 

‘‘(I) the reference in subparagraph (A)(i) of 

such paragraph to ‘1990’ shall be deemed a reference to ‘2014’; 

42 USC 1395r 

note. 

42 USC 1395r 

note. 


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PUBLIC LAW 114–74—NOV. 2, 2015 129 STAT. 597 

‘‘(II) subject to clause (iii), the reference in 

subparagraph (A)(ii) of such paragraph to ‘the calendar quarter beginning July 1, 1990’ shall be 

deemed a reference to ‘the calendar quarter beginning July 1, 2014’; and 

‘‘(III) subject to clause (iii), the reference in 

subparagraph (A)(ii) of such paragraph to ‘September 1990’ shall be deemed a reference to ‘September 2014’; 

‘‘(IV) the references in subparagraph (D) of 

such paragraph to ‘paragraph (1)(A)(ii)’, ‘this paragraph’, and ‘December 31, 2009’ shall be deemed 

references to ‘subparagraph (A)’, ‘this subparagraph’, and ‘December 31, 2014’, respectively; and 

‘‘(V) any reference in such paragraph to a 

‘single source drug or an innovator multiple source 

drug’ shall be deemed to be a reference to a drug 

to which clause (i) applies. 

‘‘(iii) SPECIAL RULE FOR CERTAIN NONINNOVATOR

MULTIPLE SOURCE DRUGS.—In applying paragraph 

(2)(A)(ii)(II) under clause (i) with respect to a covered 

outpatient drug that is first marketed as a drug other 

than a single source drug or an innovator multiple 

source drug after April 1, 2013, such paragraph shall 

be applied— 

‘‘(I) by substituting ‘the applicable quarter’ for 

‘the calendar quarter beginning July 1, 1990’; and 

‘‘(II) by substituting ‘the last month in such 

applicable quarter’ for ‘September 1990’. 

‘‘(iv) APPLICABLE QUARTER DEFINED.—In this subsection, the term ‘applicable quarter’ means, with 

respect to a drug described in clause (iii), the fifth 

full calendar quarter after which the drug is marketed 

as a drug other than a single source drug or an innovator multiple source drug.’’. 

(b) EFFECTIVE DATE.—The amendments made by subsection 

(a) shall apply to rebate periods beginning after the date that 

is one year after the date of the enactment of this Act. 

SEC. 603. TREATMENT OF OFF-CAMPUS OUTPATIENT DEPARTMENTS 

OF A PROVIDER. 

Section 1833(t) of the Social Security Act (42 U.S.C. 1395l(t)) 

is amended— 

(1) in paragraph (1)(B)— 

(A) in clause (iii), by striking ‘‘but’’ at the end; 

(B) in clause (iv), by striking the period at the end 

and inserting ‘‘; and’’; and 

(C) by adding at the end the following new clause: 

‘‘(v) does not include applicable items and services 

(as defined in subparagraph (A) of paragraph (21)) 

that are furnished on or after January 1, 2017, by 

an off-campus outpatient department of a provider (as 

defined in subparagraph (B) of such paragraph).’’; and 

(2) by adding at the end the following new paragraph: 

‘‘(21) SERVICES FURNISHED BY AN OFF-CAMPUS OUTPATIENT

DEPARTMENT OF A PROVIDER.— 

Applicability. 

Time period. 

42 USC 1396r–8. 

Applicability. 


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129 STAT. 598 PUBLIC LAW 114–74—NOV. 2, 2015 

‘‘(A) APPLICABLE ITEMS AND SERVICES.—For purposes 

of paragraph (1)(B)(v) and this paragraph, the term 

‘applicable items and services’ means items and services 

other than items and services furnished by a dedicated 

emergency department (as defined in section 489.24(b) of 

title 42 of the Code of Federal Regulations). 

‘‘(B) OFF-CAMPUS OUTPATIENT DEPARTMENT OF A PROVIDER.— 

‘‘(i) IN GENERAL.—For purposes of paragraph 

(1)(B)(v) and this paragraph, subject to clause (ii), the 

term ‘off-campus outpatient department of a provider’ 

means a department of a provider (as defined in section 

413.65(a)(2) of title 42 of the Code of Federal Regulations, as in effect as of the date of the enactment 

of this paragraph) that is not located— 

‘‘(I) on the campus (as defined in such section 

413.65(a)(2)) of such provider; or 

‘‘(II) within the distance (described in such 

definition of campus) from a remote location of 

a hospital facility (as defined in such section 

413.65(a)(2)). 

‘‘(ii) EXCEPTION.—For purposes of paragraph 

(1)(B)(v) and this paragraph, the term ‘off-campus outpatient department of a provider’ shall not include 

a department of a provider (as so defined) that was 

billing under this subsection with respect to covered 

OPD services furnished prior to the date of the enactment of this paragraph. 

‘‘(C) AVAILABILITY OF PAYMENT UNDER OTHER PAYMENT

SYSTEMS.—Payments for applicable items and services furnished by an off-campus outpatient department of a provider that are described in paragraph (1)(B)(v) shall be 

made under the applicable payment system under this 

part (other than under this subsection) if the requirements 

for such payment are otherwise met. 

‘‘(D) INFORMATION NEEDED FOR IMPLEMENTATION.— 

Each hospital shall provide to the Secretary such information as the Secretary determines appropriate to implement 

this paragraph and paragraph (1)(B)(v) (which may include 

reporting of information on a hospital claim using a code 

or modifier and reporting information about off-campus 

outpatient departments of a provider on the enrollment 

form described in section 1866(j)). 

‘‘(E) LIMITATIONS.—There shall be no administrative 

or judicial review under section 1869, section 1878, or 

otherwise of the following: 

‘‘(i) The determination of the applicable items and 

services under subparagraph (A) and applicable payment systems under subparagraph (C). 

‘‘(ii) The determination of whether a department 

of a provider meets the term described in subparagraph 

(B). 

‘‘(iii) Any information that hospitals are required 

to report pursuant to subparagraph (D).’’. 

Definition. 

Definition. 


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PUBLIC LAW 114–74—NOV. 2, 2015 129 STAT. 599 

SEC. 604. REPEAL OF AUTOMATIC ENROLLMENT REQUIREMENT. 

The Fair Labor Standards Act of 1938 (29 U.S.C. 201 et seq.) 

is amended by repealing section 18A (as added by section 1511 

of the Patient Protection and Affordable Care Act (Public Law 

111–148)). 

TITLE VII—JUDICIARY 

SEC. 701. CIVIL MONETARY PENALTY INFLATION ADJUSTMENTS. 

(a) SHORT TITLE.—This section may be cited as the ‘‘Federal 

Civil Penalties Inflation Adjustment Act Improvements Act of 2015’’. 

(b) AMENDMENTS.—The Federal Civil Penalties Inflation Adjustment Act of 1990 (28 U.S.C. 2461 note) is amended— 

(1) in section 4— 

(A) by striking the matter preceding paragraph (1) 

and inserting the following: 

‘‘(a) IN GENERAL.—Not later than July 1, 2016, and not later 

than January 15 of every year thereafter, and subject to subsections 

(c) and (d), the head of each agency 

shall—’’; 

(B) in paragraph (1)— 

(i) by striking ‘‘by regulation adjust’’ and inserting 

‘‘in accordance with subsection (b), adjust’’; and 

(ii) by striking ‘‘, the Tariff Act of 1930, the Occupational Safety and Health Act of 1970, or the Social 

Security Act’’ and inserting ‘‘ or the Tariff Act of 1930’’; 

(C) in paragraph (2), by striking ‘‘such regulation’’ and 

inserting ‘‘such adjustment’’; and 

(D) by adding at the end the following: 

‘‘(b) PROCEDURES FOR ADJUSTMENTS.— 

‘‘(1) CATCH UP ADJUSTMENT.—For the first adjustment made 

under subsection (a) after the date of enactment of the Federal 

Civil Penalties Inflation Adjustment Act Improvements Act of 

2015— 

‘‘(A) the head of an agency shall adjust civil monetary 

penalties through an interim final rulemaking; and 

‘‘(B) the adjustment shall take effect not later than 

August 1, 2016. 

‘‘(2) SUBSEQUENT ADJUSTMENTS.—For the second adjustment made under subsection (a) after the date of enactment 

of the Federal Civil Penalties Inflation Adjustment Act 

Improvements Act of 2015, and each adjustment thereafter, 

the head of an agency shall adjust civil monetary penalties 

and shall make the adjustment notwithstanding section 553 

of title 5, United States Code. 

‘‘(c) EXCEPTION.—For the first adjustment made under subsection (a) after the date of enactment of the Federal Civil Penalties 

Inflation Adjustment Act Improvements Act of 2015, the head of 

an agency may adjust the amount of a civil monetary penalty 

by less than the otherwise required amount if— 

‘‘(1) the head of the agency, after publishing a notice of 

proposed rulemaking and providing an opportunity for comment, determines in a final rule that— 

‘‘(A) increasing the civil monetary penalty by the otherwise required amount will have a negative economic 

impact; or 

Publication. 

Notice. 

Public comments. 

Determination. 

Regulations. 

Effective date. 

Deadline. 

Regulations. 

Deadlines. 

Federal Civil 

Penalties 

Inflation 

Adjustment Act 

Improvements 

Act of 2015. 

28 USC 1 note. 

28 USC 2461 

note. 

29 USC 218a. 


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129 STAT. 600 PUBLIC LAW 114–74—NOV. 2, 2015 

‘‘(B) the social costs of increasing the civil monetary 

penalty by the otherwise required amount outweigh the 

benefits; and 

‘‘(2) the Director of the Office of Management and Budget 

concurs with the determination of the head of the agency under 

paragraph (1). 

‘‘(d) OTHER ADJUSTMENTS MADE.—If a civil monetary penalty 

subject to a cost-of-living adjustment under this Act is, during 

the 12 months preceding a required cost-of-living adjustment, 

increased by an amount greater than the amount of the adjustment 

required under subsection (a), the head of the agency is not required 

to make the cost-of-living adjustment for that civil monetary penalty 

in that year.’’; 

(2) in section 5— 

(A) in subsection (a), by striking ‘‘to the nearest— 

’’ and all that follows through the end of subsection (a) 

and inserting ‘‘to the nearest multiple of $1.’’; and 

(B) by amending subsection (b) to read as follows: 

‘‘(b) DEFINITION.— 

‘‘(1) IN GENERAL.—Except as provided in paragraph (2), 

for purposes of subsection (a), the term ‘cost-of-living adjustment’ means the percentage (if any) for each civil monetary 

penalty by which— 

‘‘(A) the Consumer Price Index for the month of October 

preceding the date of the adjustment, exceeds 

‘‘(B) the Consumer Price Index for the month of October 

1 year before the month of October referred to in subparagraph (A). 

‘‘(2) INITIAL ADJUSTMENT.— 

‘‘(A) IN GENERAL.—Subject to subparagraph (C), for 

the first inflation adjustment under section 4 made by 

an agency after the date of enactment of the Federal Civil 

Penalties Inflation Adjustment Act Improvements Act of 

2015, the term ‘cost-of-living adjustment’ means the 

percentage (if any) for each civil monetary penalty by which 

the Consumer Price Index for the month of October, 2015 

exceeds the Consumer Price Index for the month of October 

of the calendar year during which the amount of such 

civil monetary penalty was established or adjusted under 

a provision of law other than this Act. 

‘‘(B) APPLICATION OF ADJUSTMENT.—The cost-of-living 

adjustment described in subparagraph (A) shall be applied 

to the amount of the civil monetary penalty as it was 

most recently established or adjusted under a provision 

of law other than this Act. 

‘‘(C) MAXIMUM ADJUSTMENT.—The amount of the 

increase in a civil monetary penalty under subparagraph 

(A) shall not exceed 150 percent of the amount of that 

civil monetary penalty on the date of enactment of the 

Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015.’’; 

(3) in section 6, by striking ‘‘violations which occur’’ and 

inserting ‘‘civil monetary penalties, including those whose associated violation predated such increase, which are assessed’’; 

and 

(4) by adding at the end the following: 

28 USC 2461 

note. 

28 USC 2461 

note. 

Time period. 


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PUBLIC LAW 114–74—NOV. 2, 2015 129 STAT. 601 

‘‘SEC. 7. IMPLEMENTATION AND OVERSIGHT ENHANCEMENTS. 

‘‘(a) OMB GUIDANCE.—Not later than February 29, 2016, not 

later than December 15, 2016, and December 15 of every year 

thereafter, the Director of the Office of Management and Budget 

shall issue guidance to agencies on implementing the inflation 

adjustments required under this Act. 

‘‘(b) AGENCY FINANCIAL REPORTS.—The head of each agency 

shall include in the Agency Financial Report submitted under OMB 

Circular A–136, or any successor thereto, information about the 

civil monetary penalties within the jurisdiction of the agency, 

including the adjustment of the civil monetary penalties by the 

head of the agency under this Act. 

‘‘(c) GAO REVIEW.—The Comptroller General of the United 

States shall annually submit to Congress a report assessing the 

compliance of agencies with the inflation adjustments required 

under this Act, which may be included as part of another report 

submitted to Congress.’’. 

(c) REPEAL.—Section 31001(s) of the Debt Collection Improvement Act of 1996 (28 U.S.C. 2461 note) is amended by striking 

paragraph (2). 

SEC. 702. CRIME VICTIMS FUND. 

There is hereby rescinded and permanently canceled 

$1,500,000,000 of the funds deposited or available in the Crime 

Victims Fund created by section 1402 of the Victims of Crime 

Act of 1984 (42 U.S.C. 10601). 

SEC. 703. ASSETS FORFEITURE FUND. 

Of the amounts deposited in the Department of Justice Assets 

Forfeiture Fund, $746,000,000 are hereby rescinded and permanently cancelled. 

TITLE VIII—SOCIAL SECURITY 

SEC. 801. SHORT TITLE. 

This title may be cited as the ‘‘Social Security Benefit Protection 

and Opportunity Enhancement Act of 2015’’. 

Subtitle A—Ensuring Correct Payments 

and Reducing Fraud 

SEC. 811. EXPANSION OF COOPERATIVE DISABILITY INVESTIGATIONS 

UNITS. 

(a) IN GENERAL.—Not later than October 1, 2022, the Commissioner of Social Security shall take any necessary actions, subject 

to the availability of appropriations, to ensure that cooperative 

disability investigations units have been established, in areas where 

there is cooperation with local law enforcement agencies, that would 

cover each of the 50 States, the District of Columbia, Puerto Rico, 

Guam, the Northern Mariana Islands, the Virgin Islands, and American Samoa. 

(b) REPORT.—Not later than 90 days after the date of the 

enactment of this Act and annually thereafter until the earlier 

of 2022 or the date on which nationwide coverage is achieved, 

the Commissioner of Social Security shall submit to the Committee 

Deadline. 

42 USC 421. 

Social Security 

Benefit 

Protection and 

Opportunity 

Enhancement 

Act of 2015. 

42 USC 1305 

note. 

Rescission. 

Cancellation. 

Rescission. 

Reports. 

28 USC 2461 

note. 

Deadlines. 


dkrause on DSKHT7XVN1PROD with PUBLAWS
129 STAT. 602 PUBLIC LAW 114–74—NOV. 2, 2015 

on Ways and Means of the House of Representatives and the 

Committee on Finance of the Senate a report describing a plan 

to implement the nationwide coverage described in subsection (a) 

and outlining areas where the Social Security Administration did 

not receive the cooperation of local law enforcement agencies. 

SEC. 812. EXCLUSION OF CERTAIN MEDICAL SOURCES OF EVIDENCE. 

(a) IN GENERAL.—Section 223(d)(5) of the Social Security Act 

(42 U.S.C. 423(d)(5)) is amended by adding at the end the following: 

‘‘(C)(i) In making any determination with respect to 

whether an individual is under a disability or continues 

to be under a disability, the Commissioner of Social Security may not consider (except for good cause as determined 

by the Commissioner) any evidence furnished by— 

‘‘(I) any individual or entity who has been convicted 

of a felony under section 208 or under section 1632; 

‘‘(II) any individual or entity who has been 

excluded from participation in any Federal health care 

program under section 1128; or 

‘‘(III) any person with respect to whom a civil 

money penalty or assessment has been imposed under 

section 1129 for the submission of false evidence. 

‘‘(ii) To the extent and at such times as is necessary 

for the effective implementation of clause (i) of this 

subparagraph— 

‘‘(I) the Inspector General of the Social Security 

Administration shall transmit to the Commissioner 

information relating to persons described in subclause 

(I) or (III) of clause (i); 

‘‘(II) the Secretary of Health and Human Services 

shall transmit to the Commissioner information 

relating to persons described in subclause (II) of clause 

(i); and’’. 

(b) REGULATIONS.—Not later than 1 year after the date of 

the enactment of this Act, the Commissioner of Social Security 

shall issue regulations to carry out the amendment made by subsection (a). 

(c) EFFECTIVE DATE.—The amendment made by subsection (a) 

shall apply with respect to determinations of disability made on 

or after the earlier of— 

(1) the effective date of the regulations issued by the 

Commissioner under subsection (b); or 

(2) one year after the date of the enactment of this Act. 

SEC. 813. NEW AND STRONGER PENALTIES. 

(a) CONSPIRACY TO COMMIT SOCIAL SECURITY FRAUD.— (1) AMENDMENT TO TITLE II.—Section 208(a) of the Social 

Security Act (42 U.S.C. 408(a)) is amended— 

(A) in paragraph (7)(C), by striking ‘‘or’’ at the end; 

(B) in paragraph (8), by adding ‘‘or’’ at the end; and 

(C) by inserting after paragraph (8) the following: 

‘‘(9) conspires to commit any offense described in any of 

paragraphs (1) through (4),’’. 

(2) AMENDMENT TO TITLE VIII.—Section 811(a) of such Act 

(42 U.S.C. 1011(a)) is amended— 

(A) in paragraph (3), by striking ‘‘or’’ at the end; 

(B) in paragraph (4), by striking the comma and adding 

‘‘; or’’ at the end; and 

Applicability. 

42 USC 423 note. 

Deadline. 

42 USC 423 note. 

Determination. 


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PUBLIC LAW 114–74—NOV. 2, 2015 129 STAT. 603 

(C) by inserting after paragraph (4) the following: 

‘‘(5) conspires to commit any offense described in any of 

paragraphs (1) through (3),’’. 

(3) AMENDMENT TO TITLE XVI.—Section 1632(a) of such 

Act (42 U.S.C. 1383a(a)) is amended— 

(A) in paragraph (3), by striking ‘‘or’’ at the end; 

(B) in paragraph (4), by adding ‘‘or’’ at the end; and 

(C) by inserting after paragraph (4) the following: 

‘‘(5) conspires to commit any offense described in any of 

paragraphs (1) through (3),’’. 

(b) INCREASED CRIMINAL PENALTIES FOR CERTAIN INDIVIDUALS

VIOLATING POSITIONS OF TRUST.— (1) AMENDMENT TO TITLE II.—Section 208(a) of the Social 

Security Act (42 U.S.C. 408(a)), as amended by subsection 

(a), is further amended by striking the period at the end and 

inserting ‘‘, except that in the case of a person who receives 

a fee or other income for services performed in connection 

with any determination with respect to benefits under this 

title (including a claimant representative, translator, or current 

or former employee of the Social Security Administration), or 

who is a physician or other health care provider who submits, 

or causes the submission of, medical or other evidence in 

connection with any such determination, such person shall 

be guilty of a felony and upon conviction thereof shall be 

fined under title 18, United States Code, or imprisoned for 

not more than ten years, or both.’’. 

(2) AMENDMENT TO TITLE VIII.—Section 811(a) of such Act 

(42 U.S.C. 1011(a)), as amended by subsection (a), is further 

amended by striking the period at the end and inserting ‘‘, 

except that in the case of a person who receives a fee or 

other income for services performed in connection with any 

determination with respect to benefits under this title 

(including a claimant representative, translator, or current or 

former employee of the Social Security Administration), or who 

is a physician or other health care provider who submits, or 

causes the submission of, medical or other evidence in connection with any such determination, such person shall be guilty 

of a felony and upon conviction thereof shall be fined under 

title 18, United States Code, or imprisoned for not more than 

ten years, or both.’’. 

(3) AMENDMENT TO TITLE XVI.—Section 1632(a) of such 

Act (42 U.S.C. 1383a(a)), as amended by subsection (a), is 

further amended by striking the period at the end and inserting 

‘‘, except that in the case of a person who receives a fee 

or other income for services performed in connection with any 

determination with respect to benefits under this title 

(including a claimant representative, translator, or current or 

former employee of the Social Security Administration), or who 

is a physician or other health care provider who submits, or 

causes the submission of, medical or other evidence in connection with any such determination, such person shall be guilty 

of a felony and upon conviction thereof shall be fined under 

title 18, United States Code, or imprisoned for not more than 

ten years, or both.’’. 

(c) INCREASED CIVIL MONETARY PENALTIES FOR CERTAIN

INDIVIDUALS VIOLATING POSITIONS OF TRUST.—Section 1129(a)(1) 

of the Social Security Act (42 U.S.C. 1320a–8(a)(1)) is amended, 


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129 STAT. 604 PUBLIC LAW 114–74—NOV. 2, 2015 

in the matter following subparagraph (C), by inserting after ‘‘withholding disclosure of such fact’’ the following: ‘‘, except that in 

the case of such a person who receives a fee or other income 

for services performed in connection with any such determination 

(including a claimant representative, translator, or current or 

former employee of the Social Security Administration) or who 

is a physician or other health care provider who submits, or causes 

the submission of, medical or other evidence in connection with 

any such determination, the amount of such penalty shall be not 

more than $7,500’’. 

(d) NO BENEFITS PAYABLE TO INDIVIDUALS FOR WHOM A CIVIL

MONETARY PENALTY IS IMPOSED FOR FRAUDULENTLY CONCEALING

WORK ACTIVITY.—Section 222(c)(5) of the Social Security Act (42 

U.S.C. 422(c)(5)) is amended by inserting after ‘‘conviction by a 

Federal court’’ the following: ‘‘, or the imposition of a civil monetary 

penalty under section 1129,’’. 

SEC. 814. REFERENCES TO SOCIAL SECURITY AND MEDICARE IN ELECTRONIC COMMUNICATIONS. 

(a) IN GENERAL.—Section 1140(a)(1) of the Social Security Act 

(42 U.S.C. 1320b–10(a)(1)) is amended by inserting ‘‘(including any 

Internet or other electronic communication)’’ after ‘‘or other communication’’. 

(b) EACH COMMUNICATION TREATED AS SEPARATE VIOLATION.— 

Section 1140(b) of such Act (42 U.S.C. 1320b–10(b)) is amended 

by inserting after the second sentence the following: ‘‘In the case 

of any items referred to in subsection (a)(1) consisting of Internet 

or other electronic communications, each dissemination, viewing, 

or accessing of such a communication which contains one or more 

words, letters, symbols, or emblems in violation of subsection (a) 

shall represent a separate violation’’. 

SEC. 815. CHANGE TO CAP ADJUSTMENT AUTHORITY. 

Section 251(b)(2)(B) of the Balanced Budget and Emergency 

Deficit Control Act of 1985 (2 U.S.C. 901(b)(2)(B)) is amended— 

(1) in clause (i)— 

(A) in the matter before subclause (I), by striking ‘‘and 

for the cost associated with conducting redeterminations 

of eligibility under title XVI of the Social Security Act’’ 

and inserting ‘‘, for the cost associated with conducting 

redeterminations of eligibility under title XVI of the Social 

Security Act, for the cost of co-operative disability investigation units, and for the cost associated with the prosecution 

of fraud in the programs and operations of the Social 

Security Administration by Special Assistant United States 

Attorneys’’; 

(B) in subclause (VI), by striking ‘‘$1,309,000,000’’ and 

inserting ‘‘$1,546,000,000’’; 

(C) in subclause (VII), by striking ‘‘$1,309,000,000’’ and 

inserting ‘‘$1,462,000,000’’; 

(D) in subclause (VIII), by striking ‘‘$1,309,000,000’’ 

and inserting ‘‘$1,410,000,000’’; and 

(E) in subclause (X), by striking ‘‘$1,309,000,000’’ and 

inserting ‘‘$1,302,000,000’’; 

(2) in clause (ii)(I), by inserting ‘‘, including work-related 

continuing disability reviews to determine whether earnings 

derived from services demonstrate an individual’s ability to 


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PUBLIC LAW 114–74—NOV. 2, 2015 129 STAT. 605 

engage in substantial gainful activity’’ before the semicolon; 

and 

(3) in clause (ii)(III), by striking ‘‘and redeterminations’’ 

and inserting ‘‘, redeterminations, co-operative disability investigation units, and fraud prosecutions’’. 

Subtitle B—Promoting Opportunity for 

Disability Beneficiaries 

SEC. 821. TEMPORARY REAUTHORIZATION OF DISABILITY INSURANCE 

DEMONSTRATION PROJECT AUTHORITY. 

(a) TERMINATION DATE.—Section 234(d)(2) of the Social Security 

Act (42 U.S.C. 434(d)(2)) is amended by striking ‘‘December 18, 

2005’’ and inserting ‘‘December 31, 2021, and the authority to 

carry out such projects shall terminate on December 31, 2022’’. 

(b) AUTHORITY TO WAIVE COMPLIANCE WITH BENEFITS REQUIREMENTS.—Section 234(c) of such Act is amended by striking 

‘‘December 17, 2005’’ and inserting ‘‘December 30, 2021’’. 

SEC. 822. MODIFICATION OF DEMONSTRATION PROJECT AUTHORITY. 

(a) IN GENERAL.—Section 234(a)(1) of the Social Security Act 

(42 U.S.C. 434(a)(1)) is amended in the matter preceding subparagraph (A) by inserting ‘‘to promote attachment to the labor force 

and’’ after ‘‘designed’’. 

(b) CONGRESSIONAL REVIEW PERIOD.—Section 234(c) of the 

Social Security Act (42 U.S.C. 434(c)), as amended by section 821(b) 

of this Act, is further amended by inserting ‘‘including the objectives 

of the experiment or demonstration project, the expected annual 

and total costs, and the dates on which the experiment or demonstration project is expected to start and finish,’’ after ‘‘thereof,’’ 

(c) ADDITIONAL REQUIREMENTS.—Section 234 of the Social Security Act (42 U.S.C. 434), as amended by subsection (b), is further 

amended by adding at the end the following: 

‘‘(e) ADDITIONAL REQUIREMENTS.—In developing and carrying 

out any experiment or demonstration project under this section, 

the Commissioner may not require any individual to participate 

in such experiment or demonstration project and shall ensure— 

‘‘(1) that the voluntary participation of individuals in such 

experiment or demonstration project is obtained through 

informed written consent which satisfies the requirements for 

informed consent established by the Commissioner for use in 

such experiment or demonstration project in which human subjects are at risk; 

‘‘(2) that any individual’s voluntary agreement to participate in any such experiment or demonstration project may 

be revoked by such individual at any time; and 

‘‘(3) that such experiment or demonstration project is 

expected to yield statistically significant results.’’. 

(d) ANNUAL REPORTING DEADLINE.—Section 234(d)(1) of such 

Act is amended by striking ‘‘June 9’’ and inserting ‘‘September 

30’’. 

SEC. 823. PROMOTING OPPORTUNITY DEMONSTRATION PROJECT. 

Section 234 of the Social Security Act (42 U.S.C. 434), as 

amended by section 822 of this Act, is further amended by adding 

at the end the following: 


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129 STAT. 606 PUBLIC LAW 114–74—NOV. 2, 2015 

‘‘(f) PROMOTING OPPORTUNITY DEMONSTRATION PROJECT.— 

‘‘(1) IN GENERAL.—The Commissioner shall carry out a 

demonstration project under this subsection as described in 

paragraph (2) during a 5-year period beginning not later than 

January 1, 2017. 

‘‘(2) BENEFIT OFFSET.—Under the demonstration project 

described in this paragraph, with respect to any individual 

participating in the project who is otherwise entitled to a benefit 

under section 223(a)(1) for a month— 

‘‘(A) any such benefit otherwise payable to the individual for such month (other than a benefit payable for 

any month prior to the 1st month beginning after the 

date on which the individual’s entitlement to such benefit 

is determined) shall be reduced by $1 for each $2 by which 

the individual’s earnings derived from services paid during 

such month exceeds an amount equal to the individual’s 

impairment-related work expenses for such month (as 

determined under paragraph (3)), except that such benefit 

may not be reduced below $0; 

‘‘(B) no benefit shall be payable under section 202 

on the basis of the wages and self-employment income 

of the individual for any month for which the benefit of 

such individual under section 223(a)(1) is reduced to $0 

pursuant to subparagraph (A); 

‘‘(C) entitlement to any benefit described in subparagraph (A) or (B) shall not terminate due to earnings derived 

from services except following the first month for which 

such benefit has been reduced to $0 pursuant to subparagraph (A) (and the trial work period (as defined in section 

222(c)) and extended period of eligibility shall not apply 

to any such individual for any such month); and 

‘‘(D) in any case in which such an individual is entitled 

to hospital insurance benefits under part A of title XVIII 

by reason of section 226(b) and such individual’s entitlement to a benefit described in subparagraph (A) or (B) 

or status as a qualified railroad retirement beneficiary 

is terminated pursuant to subparagraph (C), such individual shall be deemed to be entitled to such benefits 

or to occupy such status (notwithstanding the termination 

of such entitlement or status) for the period of consecutive 

months throughout all of which the physical or mental 

impairment, on which such entitlement or status was 

based, continues, and throughout all of which such individual would have been entitled to monthly insurance benefits under title II or as a qualified railroad retirement 

beneficiary had such termination of entitlement or status 

not occurred, but not in excess of 93 such months. 

‘‘(3) IMPAIRMENT-RELATED WORK EXPENSES.— 

‘‘(A) IN GENERAL.—For purposes of paragraph (2)(A) 

and except as provided in subparagraph (C), the amount 

of an individual’s impairment-related work expenses for 

a month is deemed to be the minimum threshold amount. 

‘‘(B) MINIMUM THRESHOLD AMOUNT.—In this paragraph, the term ‘minimum threshold amount’ means an 

amount, to be determined by the Commissioner, which 

shall not exceed the amount sufficient to demonstrate that 

Definition. 

Determination. 

Time period. 

Deadline. 


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PUBLIC LAW 114–74—NOV. 2, 2015 129 STAT. 607 

an individual has rendered services in a month, as determined by the Commissioner under section 222(c)(4)(A). The 

Commissioner may test multiple minimum threshold 

amounts. 

‘‘(C) EXCEPTION FOR ITEMIZED IMPAIRMENT-RELATED

WORK EXPENSES.— ‘‘(i) IN GENERAL.—Notwithstanding subparagraph 

(A), in any case in which the amount of such an individual’s itemized impairment-related work expenses (as 

defined in clause (ii)) for a month is greater than 

the minimum threshold amount, the amount of the 

individual’s impairment-related work expenses for the 

month shall be equal to the amount of the individual’s 

itemized impairment-related work expenses (as so 

defined) for the month. 

‘‘(ii) DEFINITION.—In this subparagraph, the term 

‘itemized impairment-related work expenses’ means 

the amount excluded under section 223(d)(4)(A) from 

an individual’s earnings for a month in determining 

whether an individual is able to engage in substantial 

gainful activity by reason of such earnings in such 

month, except that such amount does not include the 

cost to the individual of any item or service for which 

the individual does not provide to the Commissioner 

a satisfactory itemized accounting. 

‘‘(D) LIMITATION.—Notwithstanding the other provisions of this paragraph, for purposes of paragraph (2)(A), 

the amount of an individual’s impairment-related work 

expenses for a month shall not exceed the amount of 

earnings derived from services, prescribed by the Commissioner under regulations issued pursuant to section 

223(d)(4)(A), sufficient to demonstrate an individual’s 

ability to engage in substantial gainful activity.’’. 

SEC. 824. USE OF ELECTRONIC PAYROLL DATA TO IMPROVE PROGRAM 

ADMINISTRATION. 

(a) IN GENERAL.—Title XI of the Social Security Act (42 U.S.C. 

1301 et seq.) is amended by inserting after section 1183 the following: ‘‘ 

‘‘INFORMATION EXCHANGE WITH PAYROLL DATA PROVIDERS

‘‘SEC. 1184. (a) IN GENERAL.—The Commissioner of Social Security may enter into an information exchange with a payroll data 

provider for purposes of— 

‘‘(1) efficiently administering— 

‘‘(A) monthly insurance benefits under subsections 

(d)(1)(B)(ii), (d)(6)(A)(ii), (d)(6)(B), (e)(1)(B)(ii), and 

(f)(1)(B)(ii) of section 202 and subsection (a)(1) of section 

223; and 

‘‘(B) supplemental security income benefits under title 

XVI; and 

‘‘(2) preventing improper payments of such benefits without 

the need for verification by independent or collateral sources. 

‘‘(b) NOTIFICATION REQUIREMENTS.—Before entering into an 

information exchange pursuant to subsection (a), the Commissioner 

shall publish in the Federal Register a notice describing the 

Federal Register, 

publication. 

Notice. 

42 USC 1320e–3. 


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129 STAT. 608 PUBLIC LAW 114–74—NOV. 2, 2015 

information exchange and the extent to which the information 

received through such exchange is— 

‘‘(1) relevant and necessary to— 

‘‘(A) accurately determine entitlement to, and the 

amount of, benefits described under subparagraph (A) of 

subsection (a)(1); 

‘‘(B) accurately determine eligibility for, and the 

amount of, benefits described in subparagraph (B) of such 

subsection; and 

‘‘(C) prevent improper payment of such benefits; and 

‘‘(2) sufficiently accurate, up-to-date, and complete. 

‘‘(c) DEFINITIONS.—For purposes of this section: 

‘‘(1) PAYROLL DATA PROVIDER.—The term ‘payroll data provider’ means payroll providers, wage verification companies, 

and other commercial or non-commercial entities that collect 

and maintain data regarding employment and wages, without 

regard to whether the entity provides such data for a fee 

or without cost. 

‘‘(2) INFORMATION EXCHANGE.—The term ‘information 

exchange’ means the automated comparison of a system of 

records maintained by the Commissioner of Social Security 

with records maintained by a payroll data provider.’’. 

(b) AUTHORIZATION TO ACCESS INFORMATION HELD BY PAYROLL

DATA PROVIDERS.— 

(1) AMENDMENT TO TITLE II.—Section 225 of the Social 

Security Act (42 U.S.C. 425) is amended by adding at the 

end the following: 

‘‘(c) ACCESS TO INFORMATION HELD BY PAYROLL DATA PROVIDERS.—(1) The Commissioner of Social Security may require each 

individual who applies for or is entitled to monthly insurance benefits under subsections (d)(1)(B)(ii), (d)(6)(A)(ii), (d)(6)(B), (e)(1)(B)(ii), 

and (f)(1)(B)(ii) of section 202 and subsection (a)(1) of section 223 

to provide authorization by the individual for the Commissioner 

to obtain from any payroll data provider (as defined in section 

1184(c)(1)) any record held by the payroll data provider with respect 

to the individual whenever the Commissioner determines the record 

is needed in connection with a determination of initial or ongoing 

entitlement to such benefits. 

‘‘(2) An authorization provided by an individual under this 

subsection shall remain effective until the earliest of— 

‘‘(A) the rendering of a final adverse decision on the individual’s application or entitlement to benefits under this title; 

‘‘(B) the termination of the individual’s entitlement to benefits under this title; or 

‘‘(C) the express revocation by the individual of the 

authorization, in a written notification to the Commissioner. 

‘‘(3) The Commissioner of Social Security is not required to 

furnish any authorization obtained pursuant to this subsection to 

the payroll data provider. 

‘‘(4) The Commissioner shall inform any person who provides 

authorization pursuant to this clause of the duration and scope 

of the authorization. 

‘‘(5) If an individual who applies for or is entitled to benefits 

under this title refuses to provide, or revokes, any authorization 

under this subsection, subsection (d) shall not apply to such individual beginning with the first day of the first month in which 

he or she refuses or revokes such authorization.’’. 

Effective date. 

Notification. 

Notification. 

Termination 

date. 

Determination. 


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PUBLIC LAW 114–74—NOV. 2, 2015 129 STAT. 609 

(2) TITLE XVI.—Section 1631(e)(1)(B) of the Social Security 

Act (42 U.S.C. 1383(e)(1)(B)) is amended by adding at the 

end the following: 

‘‘(iii)(I) The Commissioner of Social Security may require each 

applicant for, or recipient of, benefits under this title to provide 

authorization by the applicant, recipient or legal guardian (or by 

any other person whose income or resources are material to the 

determination of the eligibility of the applicant or recipient for 

such benefits) for the Commissioner to obtain from any payroll 

data provider (as defined in section 1184(c)(1)) any record held 

by the payroll data provider with respect to the applicant or 

recipient (or any such other person) whenever the Commissioner 

determines the record is needed in connection with a determination 

of initial or ongoing eligibility or the amount of such benefits. 

‘‘(II) An authorization provided by an applicant, recipient or 

legal guardian (or any other person whose income or resources 

are material to the determination of the eligibility of the applicant 

or recipient) under this clause shall remain effective until the 

earliest of— 

‘‘(aa) the rendering of a final adverse decision on the 

applicant’s application for eligibility for benefits under this 

title; 

‘‘(bb) the cessation of the recipient’s eligibility for benefits 

under this title; 

‘‘(cc) the express revocation by the applicant, or recipient 

(or such other person referred to in subclause (I)) of the 

authorization, in a written notification to the Commissioner; 

or 

‘‘(dd) the termination of the basis upon which the Commissioner considers another person’s income and resources available to the applicant or recipient. 

‘‘(III) The Commissioner of Social Security is not required to 

furnish any authorization obtained pursuant to this clause to the 

payroll data provider. 

‘‘(IV) The Commissioner shall inform any person who provides 

authorization pursuant to this clause of the duration and scope 

of the authorization. 

‘‘(V) If an applicant for, or recipient of, benefits under this 

title (or any such other person referred to in subclause (I)) refuses 

to provide, or revokes, any authorization required by subclause 

(I), paragraph (2)(B) and paragraph (10) shall not apply to such 

applicant or recipient beginning with the first day of the first 

month in which he or she refuses or revokes such authorization.’’. 

(c) REPORTING RESPONSIBILITIES FOR BENEFICIARIES SUBJECT

TO INFORMATION EXCHANGE WITH PAYROLL DATA PROVIDER.— 

(1) AMENDMENT TO TITLE II.—Section 225 of the Social 

Security (42 U.S.C. 425), as amended by subsection (b)(1), is 

further amended by adding at the end the following: 

‘‘(d) An individual who has authorized the Commissioner of 

Social Security to obtain records from a payroll data provider under 

subsection (c) shall not be subject to a penalty under section 1129A 

for any omission or error with respect to such individual’s wages 

as reported by the payroll data provider.’’. 

(2) AMENDMENT TO TITLE XVI.—Section 1631(e) of the Social 

Security Act (42 U.S.C. 1383(e)) is amended— 

(A) in paragraph (2)— 

Effective date. 

Notification. 

Notification. 

Termination 

date. 

Determination. 


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129 STAT. 610 PUBLIC LAW 114–74—NOV. 2, 2015 

(i) by striking ‘‘In the case of the failure’’ and 

inserting ‘‘(A) In the case of the failure’’; 

(ii) by redesignating subparagraphs (A) through 

(C) as clauses (i) through (iii), respectively; and 

(iii) by adding at the end the following: 

‘‘(B) For purposes of subparagraph (A), the Commissioner of 

Social Security shall find that good cause exists for the failure 

of, or delay by, an individual in submitting a report of an event 

or change in circumstances relevant to eligibility for or amount 

of benefits under this title in any case where— 

‘‘(i) the individual (or another person referred to in paragraph (1)(B)(iii)(I)) has provided authorization to the Commissioner to access payroll data records related to the individual; 

and 

‘‘(ii) the event or change in circumstance is a change in 

the individual’s employer.’’; and 

(B) by adding at the end the following: 

‘‘(10) An individual who has authorized the Commissioner of 

Social Security to obtain records from a payroll data provider under 

paragraph (1)(B)(iii) (or on whose behalf another person described 

in subclause (I) of such paragraph has provided such authorization) 

shall not be subject to a penalty under section 1129A for any 

omission or error with respect to such individual’s wages as reported 

by the payroll data provider.’’. 

(d) REGULATIONS.—Not later than 1 year after the date of 

the enactment of this Act, the Commissioner of Social Security 

shall prescribe by regulation procedures for implementing the 

Commissioner’s access to and use of information held by payroll 

providers, including— 

(1) guidelines for establishing and maintaining information 

exchanges with payroll providers, pursuant to section 1184 

of the Social Security Act; 

(2) beneficiary authorizations; 

(3) reduced wage reporting responsibilities for individuals 

who authorize the Commissioner to access information held 

by payroll data providers through an information exchange; 

and 

(4) procedures for notifying individuals in writing when 

they become subject to such reduced wage reporting requirements and when such reduced wage reporting requirements 

no longer apply to them. 

(e) EFFECTIVE DATE.—The amendments made by this section 

shall take effect on the date that is 1 year after the date of 

the enactment of this Act. 

SEC. 825. TREATMENT OF EARNINGS DERIVED FROM SERVICES. 

(a) IN GENERAL.—Section 223(d)(4) of the Social Security Act 

(42 U.S.C. 423(d)(4)) is amended by adding at the end the following: 

‘‘(C)(i) Subject to clause (ii), in determining when earnings 

derived from services demonstrate an individual’s ability to engage 

in substantial gainful activity, such earnings shall be presumed 

to have been earned— 

‘‘(I) in making a determination of initial entitlement on 

the basis of disability, in the month in which the services 

were performed from which such earnings were derived; and 

‘‘(II) in any other case, in the month in which such earnings 

were paid. 

Determinations. 

42 USC 425 note. 

Notification. 

Guidelines. 

Deadline. 

Procedures. 

42 USC 1320e–3 

note. 


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PUBLIC LAW 114–74—NOV. 2, 2015 129 STAT. 611 

‘‘(ii) A presumption made under clause (i) shall not apply to 

a determination described in such clause if— 

‘‘(I) the Commissioner can reasonably establish, based on 

evidence readily available at the time of such determination, 

that the earnings were earned in a different month than when 

paid; or 

‘‘(II) in any case in which there is a determination that 

no benefit is payable due to earnings, after the individual 

is notified of the presumption made and provided with an 

opportunity to submit additional information along with an 

explanation of what additional information is needed, the individual shows to the satisfaction of the Commissioner that such 

earnings were earned in another month.’’. 

(b) EFFECTIVE DATE.—The amendment made by subsection (a) 

shall take effect upon the date of the enactment of this Act, or 

as soon as practicable thereafter. 

SEC. 826. ELECTRONIC REPORTING OF EARNINGS. 

(a) IN GENERAL.—Not later than September 30, 2017, the 

Commissioner of Social Security shall establish and implement 

a system that— 

(1) allows an individual entitled to a monthly insurance 

benefit based on disability under title II of the Social Security 

Act (or a representative of the individual) to report to the 

Commissioner the individual’s earnings derived from services 

through electronic means, including by telephone and Internet; 

and 

(2) automatically issues a receipt to the individual (or representative) after receiving each such report. 

(b) SUPPLEMENTAL SECURITY INCOME REPORTING SYSTEM AS

MODEL.—The Commissioner shall model the system established 

under subsection (a) on the electronic wage reporting systems for 

recipients of supplemental security income under title XVI of such 

Act. 

Subtitle C—Protecting Social Security 

Benefits 

SEC. 831. CLOSURE OF UNINTENDED LOOPHOLES. 

(a) PRESUMED FILING OF APPLICATION BY INDIVIDUALS ELIGIBLE

FOR OLD-AGE INSURANCE BENEFITS AND FOR WIFE’S OR HUSBAND’S

INSURANCE BENEFITS.— 

(1) IN GENERAL.—Section 202(r) of the Social Security Act 

(42 U.S.C. 402(r)) is amended by striking paragraphs (1) and 

(2) and inserting the following: 

‘‘(1) If an individual is eligible for a wife’s or husband’s 

insurance benefit (except in the case of eligibility pursuant 

to clause (ii) of subsection (b)(1)(B) or subsection (c)(1)(B), as 

appropriate), in any month for which the individual is entitled 

to an old-age insurance benefit, such individual shall be deemed 

to have filed an application for wife’s or husband’s insurance 

benefits for such month. 

‘‘(2) If an individual is eligible (but for section 202(k)(4)) 

for an old-age insurance benefit in any month for which the 

individual is entitled to a wife’s or husband’s insurance benefit 

(except in the case of entitlement pursuant to clause (ii) of 

Deadline. 

42 USC 423 note. 

42 USC 423 note. 


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129 STAT. 612 PUBLIC LAW 114–74—NOV. 2, 2015 

subsection (b)(1)(B) or subsection (c)(1)(B), as appropriate), such 

individual shall be deemed to have filed an application for 

old-age insurance benefits— 

‘‘(A) for such month, or 

‘‘(B) if such individual is also entitled to a disability 

insurance benefit for such month, in the first subsequent 

month for which such individual is not entitled to a disability insurance benefit.’’. 

(2) CONFORMING AMENDMENT.—Section 202 of the Social 

Security Act (42 U.S.C. 402) is amended— 

(A) in subsection (b)(1), by striking subparagraph (B) 

and inserting the following: 

‘‘(B)(i) has attained age 62, or 

‘‘(ii) in the case of a wife, has in her care (individually 

or jointly with such individual) at the time of filing such application a child entitled to a child’s insurance benefit on the basis 

of the wages and self-employment income of such individual,’’; 

and 

(B) in subsection (c)(1), by striking subparagraph (B) 

and inserting the following: 

‘‘(B)(i) has attained age 62, or 

‘‘(ii) in the case of a husband, has in his care (individually 

or jointly with such individual) at the time of filing such application a child entitled to a child’s insurance benefit on the basis 

of the wages and self-employment income of such individual,’’. 

(3) EFFECTIVE DATE.—The amendments made by this subsection shall apply with respect to individuals who attain age 

62 in any calendar year after 2015. 

(b) VOLUNTARY SUSPENSION OF BENEFITS.— 

(1) IN GENERAL.—Section 202 of the Social Security Act 

(42 U.S.C. 402) is amended by adding at the end the following: 

‘‘(z) VOLUNTARY SUSPENSION.—(1)(A) Except as otherwise provided in this subsection, any individual who has attained retirement 

age (as defined in section 216(l)) and is entitled to old-age insurance 

benefits may request that payment of such benefits be suspended— 

‘‘(i) beginning with the month following the month 

in which such request is received by the Commissioner, 

and 

‘‘(ii) ending with the earlier of the month following 

the month in which a request by the individual for a 

resumption of such benefits is so received or the month 

following the month in which the individual attains the 

age of 70. 

‘‘(2) An individual may not suspend such benefits under this 

subsection, and any suspension of such benefits under this subsection shall end, effective with respect to any month in which 

the individual becomes subject to— 

‘‘(A) mandatory suspension of such benefits under section 

202(x); 

‘‘(B) termination of such benefits under section 202(n); 

‘‘(C) a penalty under section 1129A imposing nonpayment 

of such benefits; or 

‘‘(D) any other withholding, in whole or in part, of such 

benefits under any other provision of law that authorizes 

recovery of a debt by withholding such benefits. 

Termination 

date. 

Termination 

date. 

Effective date. 

Applicability. 

42 USC 402 note. 


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PUBLIC LAW 114–74—NOV. 2, 2015 129 STAT. 613 

‘‘(3) In the case of an individual who requests that such benefits 

be suspended under this subsection, for any month during the 

period in which the suspension is in effect— 

‘‘(A) no retroactive benefits (as defined in subsection 

(j)(4)(B)(iii)) shall be payable to such individual; 

‘‘(B) no monthly benefit shall be payable to any other 

individual on the basis of such individual’s wages and selfemployment income; and 

‘‘(C) no monthly benefit shall be payable to such individual 

on the basis of another individual’s wages and self-employment 

income.’’. 

(2) CONFORMING AMENDMENT.—Section 202(w)(2)(B)(ii) of 

the Social Security Act (42 U.S.C. 402(w)(2)(B)(ii)) is amended 

by inserting ‘‘under section 202(z)’’ after ‘‘request’’. 

(3) EFFECTIVE DATE.—The amendments made by this subsection shall apply with respect to requests for benefit suspension submitted beginning at least 180 days after the date 

of the enactment of this Act. 

SEC. 832. REQUIREMENT FOR MEDICAL REVIEW. 

(a) IN GENERAL.—Section 221(h) of the Social Security Act 

(42 U.S.C. 421(h)) is amended to read as follows: 

‘‘(h) An initial determination under subsection (a), (c), (g), or 

(i) shall not be made until the Commissioner of Social Security 

has made every reasonable effort to ensure— 

‘‘(1) in any case where there is evidence which indicates 

the existence of a mental impairment, that a qualified psychiatrist or psychologist has completed the medical portion of the 

case review and any applicable residual functional capacity 

assessment; and 

‘‘(2) in any case where there is evidence which indicates 

the existence of a physical impairment, that a qualified physician has completed the medical portion of the case review 

and any applicable residual functional capacity assessment.’’. 

(b) EFFECTIVE DATE.—The amendment made by subsection (a) 

shall apply with respect to determinations of disability made on 

or after the date that is 1 year after the date of the enactment 

of this Act. 

SEC. 833. REALLOCATION OF PAYROLL TAX REVENUE. 

(1) WAGES.—Section 201(b)(1) of the Social Security Act 

(42 U.S.C. 401(b)(1)) is amended by striking ‘‘and (R) 1.80 

per centum of the wages (as so defined) paid after December 

31, 1999, and so reported’’ and inserting ‘‘(R) 1.80 per centum 

of the wages (as so defined) paid after December 31, 1999, 

and before January 1, 2016, and so reported, (S) 2.37 per 

centum of the wages (as so defined) paid after December 31, 

2015, and before January 1, 2019, and so reported, and (T) 

1.80 per centum of the wages (as so defined) paid after 

December 31, 2018, and so reported,’’. 

(2) SELF-EMPLOYMENT INCOME.—Section 201(b)(2) of such 

Act (42 U.S.C. 401(b)(2)) is amended by striking ‘‘and (R) 1.80 

per centum of the amount of self-employment income (as so 

defined) so reported for any taxable year beginning after 

December 31, 1999’’ and inserting ‘‘(R) 1.80 per centum of 

the amount of self-employment income (as so defined) so 

reported for any taxable year beginning after December 31, 

1999, and before January 1, 2016, (S) 2.37 per centum of 

Time periods. 

Applicability. 

42 USC 421 note. 

Determination. 

Applicability. 

42 USC 402 note. 


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129 STAT. 614 PUBLIC LAW 114–74—NOV. 2, 2015 

the amount of self-employment income (as so defined) so 

reported for any taxable year beginning after December 31, 

2015, and before January 1, 2019, and (T) 1.80 per centum 

of the amount of self-employment income (as so defined) so 

reported for any taxable year beginning after December 31, 

2018’’. 

(3) EFFECTIVE DATE.—The amendments made by this section shall apply with respect to wages paid after December 

31, 2015, and self-employment income for taxable years beginning after such date. 

SEC. 834. ACCESS TO FINANCIAL INFORMATION FOR WAIVERS AND 

ADJUSTMENTS OF RECOVERY. 

(a) ACCESS TO FINANCIAL INFORMATION FOR OLD-AGE, SURVIVORS, AND DISABILITY INSURANCE WAIVERS.—Section 204(b) of 

the Social Security Act (42 U.S.C. 404(b)) is amended to read 

as follows: 

‘‘(b)(1) In any case in which more than the correct amount 

of payment has been made, there shall be no adjustment of payments to, or recovery by the United States from, any person who 

is without fault if such adjustment or recovery would defeat the 

purpose of this title or would be against equity and good conscience. 

‘‘(2) In making for purposes of this subsection any determination 

of whether any individual is without fault, the Commissioner of 

Social Security shall specifically take into account any physical, 

mental, educational, or linguistic limitation such individual may 

have (including any lack of facility with the English language). 

‘‘(3)(A) In making for purposes of this subsection any determination of whether such adjustment or recovery would defeat the 

purpose of this title, the Commissioner of Social Security shall 

require an individual to provide authorization for the Commissioner 

to obtain (subject to the cost reimbursement requirements of section 

1115(a) of the Right to Financial Privacy Act) from any financial 

institution (within the meaning of section 1101(1) of such Act) 

any financial record (within the meaning of section 1101(2) of 

such Act) held by the institution with respect to such individual 

whenever the Commissioner determines the record is needed in 

connection with a determination with respect to such adjustment 

or recovery. 

‘‘(B) Notwithstanding section 1104(a)(1) of the Right to Financial Privacy Act, an authorization provided by an individual pursuant this paragraph shall remain effective until the earlier of— 

‘‘(i) the rendering of a final decision on whether adjustment 

or recovery would defeat the purpose of this title; or 

‘‘(ii) the express revocation by the individual of the 

authorization, in a written notification to the Commissioner. 

‘‘(C)(i) An authorization obtained by the Commissioner of Social 

Security pursuant this paragraph shall be considered to meet the 

requirements of the Right to Financial Privacy Act for purposes 

of section 1103(a) of such Act, and need not be furnished to the 

financial institution, notwithstanding section 1104(a) of such Act. 

‘‘(ii) The certification requirements of section 1103(b) of the 

Right to Financial Privacy Act shall not apply to requests by the 

Commissioner of Social Security pursuant to an authorization provided under this paragraph. 

Notification. 

Termination. 

Determinations. 

Applicability. 

42 USC 404. 


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PUBLIC LAW 114–74—NOV. 2, 2015 129 STAT. 615 

‘‘(iii) A request by the Commissioner pursuant to an authorization provided under this paragraph is deemed to meet the requirements of section 1104(a)(3) of the Right to Financial Privacy Act 

and the flush language of section 1102 of such Act. 

‘‘(D) The Commissioner shall inform any person who provides 

authorization pursuant to this paragraph of the duration and scope 

of the authorization. 

‘‘(E) If an individual refuses to provide, or revokes, any 

authorization for the Commissioner of Social Security to obtain 

from any financial institution any financial record, the Commissioner may, on that basis, determine that adjustment or recovery 

would not defeat the purpose of this title.’’. 

(b) ACCESS TO FINANCIAL INFORMATION FOR SUPPLEMENTAL

SECURITY INCOME WAIVERS.— (1) IN GENERAL.—Section 1631(b)(1)(B) of the Social Security Act (42 U.S.C. 1383(b)(1)(B)) is amended by adding at 

the end the following: ‘‘In making for purposes of this subparagraph a determination of whether an adjustment or recovery 

would defeat the purpose of this title, the Commissioner of 

Social Security shall require an individual to provide authorization for the Commissioner to obtain (subject to the cost 

reimbursement requirements of section 1115(a) of the Right 

to Financial Privacy Act) from any financial institution (within 

the meaning of section 1101(1) of such Act) any financial record 

(within the meaning of section 1101(2) of such Act) held by 

the institution with respect to such individual whenever the 

Commissioner determines that the record is needed in connection with a determination with respect to such adjustment 

or recovery, under the terms and conditions established under 

subsection (e)(1)(B).’’. 

(2) CONFORMING AMENDMENT.—Section 1631(e)(1)(B)(ii)(V) 

of such Act (42 U.S.C. 1383(e)(1)(B)(ii)(V)) is amended by 

inserting ‘‘, determine that adjustment or recovery on account 

of an overpayment with respect to the applicant or recipient 

would not defeat the purpose of this title, or both’’ before 

the period at the end. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall apply with respect to determinations made on or after the 

date that is 3 months after the date of the enactment of this 

section. 

Subtitle D—Relieving Administrative 

Burdens and Miscellaneous Provisions 

SEC. 841. INTERAGENCY COORDINATION TO IMPROVE PROGRAM 

ADMINISTRATION. 

(a) IN GENERAL.—Title XI of the Social Security Act (42 U.S.C. 

1301 et seq.) is amended by inserting after section 1127 the following: 

‘‘INTERAGENCY COORDINATION TO IMPROVE PROGRAM

ADMINISTRATION

‘‘SEC. 1127A. (a) COORDINATION AGREEMENT.—Notwithstanding 

any other provision of law, including section 207 of this Act, the 

Commissioner of Social Security (referred to in this section as 

Contracts. 

Procedure. 

42 USC 

1320a–6a. 

Applicability. 

42 USC 404 note. 

Determination. 

Records. 

Notification. 


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129 STAT. 616 PUBLIC LAW 114–74—NOV. 2, 2015 

‘the Commissioner’) and the Director of the Office of Personnel 

Management (referred to in this section as ‘the Director’) shall 

enter into an agreement under which a system is established to 

carry out the following procedure: 

‘‘(1) The Director shall notify the Commissioner when any 

individual is determined to be entitled to a monthly disability 

annuity payment pursuant to subchapter V of chapter 84 of 

subpart G of part III of title 5, United States Code, and shall 

certify that such individual has provided the authorization 

described in subsection (f). 

‘‘(2) If the Commissioner determines that an individual 

described in paragraph (1) is also entitled to past-due benefits 

under section 223, the Commissioner shall notify the Director 

of such fact. 

‘‘(3) Not later than 30 days after receiving a notification 

described in paragraph (2) with respect to an individual, the 

Director shall provide the Commissioner with the total amount 

of any disability annuity overpayments made to such individual, 

as well as any other information (in such form and manner 

as the Commissioner shall require) that the Commissioner 

determines is necessary to carry out this section. 

‘‘(4) If the Director provides the Commissioner with the 

information described in paragraph (3) in a timely manner, 

the Commissioner may withhold past-due benefits under section 

223 to which such individual is entitled and may pay the 

amount described in paragraph (3) to the Office of Personnel 

Management for any disability annuity overpayments made 

to such individual. 

‘‘(5) The Director shall credit any amount received under 

paragraph (4) with respect to an individual toward any disability annuity overpayment owed by such individual. 

‘‘(b) LIMITATIONS.— 

‘‘(1) PRIORITY OF OTHER REDUCTIONS.—Benefits shall only be 

withheld under this section after any other reduction applicable 

under this Act, including sections 206(a)(4), 224, and 1127(a). 

‘‘(2) TIMELY NOTIFICATION REQUIRED.—The Commissioner may 

not withhold benefits under this section if the Director does not 

provide the notice described in subsection (a)(3) within the time 

period described in such subsection. 

‘‘(c) DELAYED PAYMENT OF PAST-DUE BENEFITS.—If the 

Commissioner is required to make a notification described in subsection (a)(2) with respect to an individual, the Commissioner shall 

not make any payment of past-due benefits under section 223 

to such individual until after the period described in subsection 

(a)(3). 

‘‘(d) REVIEW.—Notwithstanding section 205 or any other provision of law, any determination regarding the withholding of pastdue benefits under this section shall only be subject to adjudication 

and review by the Director under section 8461 of title 5, United 

States Code. 

‘‘(e) DISABILITY ANNUITY OVERPAYMENT DEFINED.—For purposes of this section, the term ‘disability annuity overpayment’ 

means the amount of the reduction under section 8452(a)(2) of 

title 5, United States Code, applicable to a monthly annuity payment made to an individual pursuant to subchapter V of chapter 

84 of subpart G of part III of such title due to the individual’s 

Deadline. 

Determination. 

Notification. 

Notification. 

Certification. 


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PUBLIC LAW 114–74—NOV. 2, 2015 129 STAT. 617 

concurrent entitlement to a disability insurance benefit under section 223 during such month. 

‘‘(f) AUTHORIZATION TO WITHHOLD BENEFITS.—The authorization described in this subsection, with respect to an individual, 

is written authorization provided by the individual to the Director 

which authorizes the Commissioner to withhold past-due benefits 

under section 223 to which such individual is entitled in order 

to pay the amount withheld to the Office of Personnel Management 

for any disability overpayments made to such individual. 

‘‘(g) EXPENSES.—The Director shall pay to the Social Security 

Administration an amount equal to the amount estimated by the 

Commissioner as the total cost incurred by the Social Security 

Administration in carrying out this section for each calendar 

quarter.’’. 

(b) EFFECTIVE DATE.—The amendment made by this section 

shall apply to past-due disability insurance benefits payable on 

or after the date that is 1 year after the date of the enactment 

of this section. 

SEC. 842. ELIMINATION OF QUINQUENNIAL DETERMINATIONS 

RELATING TO WAGE CREDITS FOR MILITARY SERVICE 

PRIOR TO 1957. 

Section 217(g)(2) of the Social Security Act (42 U.S.C. 417(g)(2)) 

is amended— 

(1) by inserting ‘‘through 2010’’ after ‘‘each fifth year thereafter’’; and 

(2) by inserting after the first sentence the following: ‘‘The 

Secretary of Health and Human Services shall revise the 

amount determined under paragraph (1) with respect to the 

Federal Hospital Insurance Trust Fund under title XVIII in 

2015 and each fifth year thereafter through such date, and 

using such data, as the Secretary determines appropriate on 

the basis of the amount of benefits and administrative expenses 

actually paid from such Trust Fund under title XVIII and 

the relevant actuarial assumptions set forth in the report of 

the Board of Trustees of such Trust Fund for such year under 

section 1817(b).’’. 

SEC. 843. CERTIFICATION OF BENEFITS PAYABLE TO A DIVORCED 

SPOUSE OF A RAILROAD WORKER TO THE RAILROAD 

RETIREMENT BOARD. 

Section 205(i) of the Social Security Act (42 U.S.C. 405(i)) 

is amended by inserting ‘‘or divorced wife or divorced husband’’ 

after ‘‘the wife or husband’’. 

SEC. 844. TECHNICAL AMENDMENTS TO ELIMINATE OBSOLETE PROVISIONS. 

(a) ELIMINATION OF REFERENCE IN SECTION 226 TO A REPEALED

PROVISION.—Section 226 of the Social Security Act (42 U.S.C. 426) 

is amended— 

(1) by striking subsection (i); and 

(2) by redesignating subsection (j) as subsection (i). 

(b) ELIMINATION OF REFERENCE IN SECTION 226A TO A

REPEALED PROVISION.—Section 226A of such Act (42 U.S.C. 426– 

1) is amended by striking the second subsection (c). 

Applicability. 

42 USC 

1320a–6a note. 


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129 STAT. 618 PUBLIC LAW 114–74—NOV. 2, 2015 

SEC. 845. REPORTING REQUIREMENTS TO CONGRESS. 

(a) REPORT ON FRAUD AND IMPROPER PAYMENT PREVENTION

ACTIVITIES.—Section 704(b) of the Social Security Act (42 U.S.C. 

904(b)) is amended by adding at the end the following: 

‘‘(3) For each fiscal year beginning with 2016 and ending 

with 2021, the Commissioner shall include in the annual budget 

prepared pursuant to subparagraph (A) a report describing 

the purposes for which amounts made available for purposes 

described in section 251(b)(2)(B) of the Balanced Budget and 

Emergency Deficit Control Act of 1985 for the fiscal year were 

expended by the Social Security Administration and the purposes for which the Commissioner plans for the Administration 

to expend such funds in the succeeding fiscal year, including— 

‘‘(A) the total such amount expended; 

‘‘(B) the amount expended on co-operative disability 

investigation units; 

‘‘(C) the number of cases of fraud prevented by cooperative disability investigation units and the amount 

expended on such cases (as reported to the Commissioner 

by the Inspector General of the Social Security Administration); 

‘‘(D) the number of felony cases prosecuted under section 208 (as reported to the Commissioner by the Inspector 

General) and the amount expended by the Social Security 

Administration in supporting the prosecution of such cases; 

‘‘(E) the amount of such felony cases successfully prosecuted (as reported to the Commissioner by the Inspector 

General) and the amount expended by the Social Security 

Administration in supporting the prosecution of such cases; 

‘‘(F) the amount expended on and the number of completed— 

‘‘(i) continuing disability reviews conducted by 

mail; 

‘‘(ii) redeterminations conducted by mail; 

‘‘(iii) medical continuing disability reviews conducted pursuant to section 221(i); 

‘‘(iv) medical continuing disability reviews conducted pursuant to 1614(a)(3)(H); 

‘‘(v) redeterminations conducted pursuant to section 1611(c); and 

‘‘(vi) work-related continuing disability reviews to 

determine whether earnings derived from services 

demonstrate an individual’s ability to engage in 

substantial gainful activity; 

‘‘(G) the number of cases of fraud identified for which 

benefits were terminated as a result of medical continuing 

disability reviews (as reported to the Commissioner by 

the Inspector General), work-related continuing disability 

reviews, and redeterminations, and the amount of resulting 

savings for each such type of review or redetermination; 

and 

‘‘(H) the number of work-related continuing disability 

reviews in which a beneficiary improperly reported 

earnings derived from services for more than 3 consecutive 

months, and the amount of resulting savings.’’. 

(b) REPORT ON WORK-RELATED CONTINUING DISABILITY

REVIEWS.—The Commissioner of Social Security shall annually 

42 USC 421 note. 

Time period. 


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PUBLIC LAW 114–74—NOV. 2, 2015 129 STAT. 619 

submit to the Committee on Ways and Means of the House of 

Representatives and the Committee on Finance of the Senate a 

report on the number of work-related continuing disability reviews 

conducted each year to determine whether earnings derived from 

services demonstrate an individual’s ability to engage in substantial 

gainful activity. Such report shall include— 

(1) the number of individuals receiving benefits based on 

disability under title II of such Act for whom reports of earnings 

were received from any source by the Commissioner in the 

previous calendar year, reported as a total number and separately by the source of the report; 

(2) the number of individuals for whom such reports 

resulted in a determination to conduct a work-related continuing disability review, and the basis on which such determinations were made; 

(3) in the case of a beneficiary selected for a work-related 

continuing disability review on the basis of a report of earnings 

from any source— 

(A) the average number of days— 

(i) between the receipt of the report and the initiation of the review; 

(ii) between the initiation and the completion of 

the review; and 

(iii) the average amount of overpayment, if any; 

(B) the number of such reviews completed during such 

calendar year, and the number of such reviews that 

resulted in a suspension or termination of benefits; 

(C) the number of such reviews initiated in the current 

year that had not been completed as of the end of such 

calendar year; 

(D) the number of such reviews initiated in a prior 

year that had not been completed as of the end of such 

calendar year; 

(4) the total savings to the Trust Funds and the Treasury 

generated from benefits suspended or terminated as a result 

of such reviews; and 

(5) with respect to individuals for whom a work-related 

continuing disability review was completed during such calendar year— 

(A) the number who participated in the Ticket to Work 

program under section 1148 during such calendar year; 

(B) the number who used any program work incentives 

during such calendar year; and 

(C) the number who received vocational rehabilitation 

services during such calendar year with respect to which 

the Commissioner of Social Security reimbursed a State 

agency under section 222(d). 

(c) REPORT ON OVERPAYMENT WAIVERS.—Not later than 

January 1 of each calendar year, the Commissioner of Social Security shall submit to the Committee on Ways and Means of the 

House of Representatives and the Committee on Finance of the 

Senate a report on— 

(1) the number and total value of overpayments recovered 

or scheduled to be recovered by the Social Security Administration during the previous fiscal year of benefits under title 

II and title XVI, respectively, including the terms and conditions of repayment of such overpayments; and 

42 USC 404 note. 


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129 STAT. 620 PUBLIC LAW 114–74—NOV. 2, 2015 

(2) the number and total value of overpayments waived 

by the Social Security Administration during the previous fiscal 

year of benefits under title II and title XVI, respectively. 

SEC. 846. EXPEDITED EXAMINATION OF ADMINISTRATIVE LAW 

JUDGES. 

(a) IN GENERAL.—Notwithstanding any other provision of law, 

the Office of Personnel Management shall, upon request of the 

Commissioner of Social Security, expeditiously administer a sufficient number of competitive examinations, as determined by the 

Commissioner, for the purpose of identifying an adequate number 

of candidates to be appointed as Administrative Law Judges under 

section 3105 of title 5, United States Code. The first such examination shall take place not later than April 1, 2016 and other examinations shall take place at such time or times requested by the 

Commissioner, but not later than December 31, 2022. Such 

examinations shall proceed even if one or more individuals who 

took a prior examination have appealed an adverse determination 

and one or more of such appeals have not concluded, provided 

that— 

(1) the Commissioner of Social Security has made a determination that delaying the examination poses a significant 

risk that an adequate number of Administrative Law Judges 

will not be available to meet the need of the Social Security 

Administration to reduce or prevent a backlog of cases awaiting 

a hearing; 

(2) an individual whose appeal is pending is provided an 

option to continue their appeal or elects to take the new examination, in which case the appeal is considered vacated; and 

(3) an individual who decides to continue his or her appeal 

and who ultimately prevails in the appeal shall receive expeditious consideration for hire by the Office Personnel Management and the Commissioner of Social Security. 

(b) PAYMENT OF COSTS.—Notwithstanding any other provision 

of law, the Commissioner of Social Security shall pay the full 

cost associated with each examination conducted pursuant to subsection (a). 

TITLE IX—TEMPORARY EXTENSION OF 

PUBLIC DEBT LIMIT 

SEC. 901. TEMPORARY EXTENSION OF PUBLIC DEBT LIMIT. 

(a) IN GENERAL.—Section 3101(b) of title 31, United States 

Code, shall not apply for the period beginning on the date of 

the enactment of this Act and ending on March 15, 2017. 

(b) SPECIAL RULE RELATING TO OBLIGATIONS ISSUED DURING

EXTENSION PERIOD.—Effective March 16, 2017, the limitation in 

effect under section 3101(b) of title 31, United States Code, shall 

be increased to the extent that— 

(1) the face amount of obligations issued under chapter 

31 of such title and the face amount of obligations whose 

principal and interest are guaranteed by the United States 

Government (except guaranteed obligations held by the Secretary of the Treasury) outstanding on March 16, 2017, exceeds 

(2) the face amount of such obligations outstanding on 

the date of the enactment of this Act. 

Effective date. 

31 USC 3101 

note. 

Time period. 

Deadlines. 

42 USC 904 note. 


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SEC. 902. RESTORING CONGRESSIONAL AUTHORITY OVER THE 

NATIONAL DEBT. 

(a) EXTENSION LIMITED TO NECESSARY OBLIGATIONS.—An 

obligation shall not be taken into account under section 901(b)(1) 

unless the issuance of such obligation was necessary to fund a 

commitment incurred pursuant to law by the Federal Government 

that required payment before March 16, 2017. 

(b) PROHIBITION ON CREATION OF CASH RESERVE DURING

EXTENSION PERIOD.—The Secretary of the Treasury shall not issue 

obligations during the period specified in section 901(a) for the 

purpose of increasing the cash balance above normal operating 

balances in anticipation of the expiration of such period. 

TITLE X—SPECTRUM PIPELINE 

SEC. 1001. SHORT TITLE. 

This title may be cited as the ‘‘Spectrum Pipeline Act of 2015’’. 

SEC. 1002. DEFINITIONS. 

In this title: 

(1) ASSISTANT SECRETARY.—The term ‘‘Assistant Secretary’’ 

means the Assistant Secretary of Commerce for Communications and Information. 

(2) COMMISSION.—The term ‘‘Commission’’ means the Federal Communications Commission. 

(3) FEDERAL ENTITY.—The term ‘‘Federal entity’’ has the 

meaning given such term in section 113(l) of the National 

Telecommunications and Information Administration Organization Act (47 U.S.C. 923(l)). 

(4) SECRETARY.—The term ‘‘Secretary’’ means the Secretary 

of Commerce. 

SEC. 1003. RULE OF CONSTRUCTION. 

Each range of frequencies described in this title shall be construed to be inclusive of the upper and lower frequencies in the 

range. 

SEC. 1004. IDENTIFICATION, REALLOCATION, AND AUCTION OF FEDERAL SPECTRUM. 

(a) IDENTIFICATION OF SPECTRUM.—Not later than January 1, 

2022, the Secretary shall submit to the President and to the 

Commission a report identifying 30 megahertz of electromagnetic 

spectrum (in bands of not less than 10 megahertz of contiguous 

frequencies) below the frequency of 3 gigahertz (except for the 

spectrum between the frequencies of 1675 megahertz and 1695 

megahertz) for reallocation from Federal use to non-Federal use 

or shared Federal and non-Federal use, or a combination thereof. 

(b) CLEARING OF SPECTRUM.—The President shall— 

(1) not later than January 1, 2022, begin the process of 

withdrawing or modifying the assignment to a Federal Government station of the electromagnetic spectrum identified under 

subsection (a); and 

(2) not later than 30 days after completing the withdrawal 

or modification, notify the Commission that the withdrawal 

or modification is complete. 

(c) REALLOCATION AND AUCTION.— 

(1) IN GENERAL.—The Commission shall— 

Notifications. 

President. 

Deadlines. 

Deadline. 

Reports. 

47 USC 921 note. 

47 USC 921 note. 

47 USC 921 note. 

47 USC 901 note. 

Spectrum 

Pipeline Act 

of 2015. 

31 USC 3101 

note. 


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(A) reallocate the electromagnetic spectrum identified 

under subsection (a) for non-Federal use or shared Federal 

and non-Federal use, or a combination thereof; and 

(B) notwithstanding paragraph (15)(A) of section 309(j) 

of the Communications Act of 1934 (47 U.S.C. 309(j)), not 

later than July 1, 2024, begin a system of competitive 

bidding under such section to grant new initial licenses 

for the use of such spectrum, subject to flexible-use service 

rules. 

(2) PROCEEDS TO COVER 110 PERCENT OF FEDERAL RELOCA- TION OR SHARING COSTS.—Nothing in paragraph (1) shall be 

construed to relieve the Commission from the requirements 

of section 309(j)(16)(B) of the Communications Act of 1934 

(47 U.S.C. 309(j)(16)(B)). 

SEC. 1005. ADDITIONAL USES OF SPECTRUM RELOCATION FUND. 

(a) IN GENERAL.—Section 118 of the National Telecommunications and Information Administration Organization Act (47 U.S.C. 

928) is amended— 

(1) by redesignating subsection (g) as subsection (i); and 

(2) by inserting after subsection (f) the following: 

‘‘(g) ADDITIONAL PAYMENTS FOR RESEARCH AND DEVELOPMENT

AND PLANNING ACTIVITIES.— 

‘‘(1) AMOUNTS AVAILABLE.—Notwithstanding subsections (c) 

through (e)— 

‘‘(A) there are appropriated from the Fund on the date 

of the enactment of the Spectrum Pipeline Act of 2015, 

and available to the Director of OMB for use in accordance 

with paragraph (2), not more than $500,000,000 from 

amounts in the Fund on such date of enactment; and 

‘‘(B) there are appropriated from the Fund after such 

date of enactment, and available to the Director of OMB 

for use in accordance with such paragraph, not more than 

10 percent of the amounts deposited in the Fund after 

such date of enactment. 

‘‘(2) USE OF AMOUNTS.— 

‘‘(A) IN GENERAL.—The Director of OMB may use 

amounts made available under paragraph (1) to make payments requested by Federal entities for research and 

development, engineering studies, economic analyses, 

activities with respect to systems, or other planning activities intended to improve the efficiency and effectiveness 

of the spectrum use of Federal entities in order to make 

available frequencies described in subparagraph (C) for 

reallocation for non-Federal use or shared Federal and 

non-Federal use, or a combination thereof, and for auction 

in accordance with such reallocation. 

‘‘(B) SYSTEMS THAT IMPROVE EFFICIENCY AND

EFFECTIVENESS OF FEDERAL SPECTRUM USE.—For purposes 

of a payment under subparagraph (A) for activities with 

respect to systems that improve the efficiency and effectiveness of the spectrum use of Federal entities, such systems 

include the following: 

‘‘(i) Systems that have increased functionality or 

that increase the ability of a Federal entity to 

accommodate spectrum sharing with non-Federal entities. 

Appropriation 

authorization. 

Deadline. 


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‘‘(ii) Systems that consolidate functions or services 

that have been provided using separate systems. 

‘‘(iii) Non-spectrum technology or systems. 

‘‘(C) FREQUENCIES DESCRIBED.—The frequencies 

described in this subparagraph are, with respect to a payment under subparagraph (A), frequencies that— 

‘‘(i) are assigned to a Federal entity; and 

‘‘(ii) at the time of the activities conducted with 

such payment, are not identified for auction. 

‘‘(D) CONDITIONS.—The Director of OMB may not make 

a payment to a Federal entity under subparagraph (A)— 

‘‘(i) unless— 

‘‘(I) the Federal entity has submitted to the 

Technical Panel established under section 

113(h)(3) a plan describing the activities that the 

Federal entity will conduct with such payment; 

‘‘(II) the Technical Panel has approved such 

plan under subparagraph (E); and 

‘‘(III) the Director of OMB has submitted the 

plan approved under subparagraph (E) to the 

congressional committees described in subsection 

(d)(2)(C); and 

‘‘(ii) until 60 days have elapsed after submission 

of the plan under clause (i)(III). 

‘‘(E) REVIEW BY TECHNICAL PANEL.— 

‘‘(i) IN GENERAL.—Not later than 120 days after 

a Federal entity submits a plan under subparagraph 

(D)(i)(I) to the Technical Panel established under section 113(h)(3), the Technical Panel shall approve or 

disapprove such plan. 

‘‘(ii) CRITERIA FOR REVIEW.—In considering 

whether to approve or disapprove a plan under this 

subparagraph, the Technical Panel shall consider 

whether— 

‘‘(I) the activities that the Federal entity will 

conduct with the payment will— 

‘‘(aa) increase the probability of relocation 

from or sharing of Federal spectrum; 

‘‘(bb) facilitate an auction intended to 

occur not later than 8 years after the payment; 

and 

‘‘(cc) increase the net expected auction proceeds in an amount not less than the time 

value of the amount of the payment; and 

‘‘(II) the transfer will leave sufficient amounts 

in the Fund for the other purposes of the Fund. 

‘‘(h) PRIORITIZATION OF PAYMENTS.—In determining whether 

to make payments under subsections (f) and (g), the Director of 

OMB shall, to the extent practicable, prioritize payments under 

subsection (g).’’. 

(b) ADMINISTRATIVE SUPPORT FOR TECHNICAL PANEL.—Section 

113(h)(3)(C) of the National Telecommunications and Information 

Administration Organization Act (47 U.S.C. 923(h)(3)(C)) is 

amended by striking ‘‘this subsection and subsection (i)’’ and 

inserting ‘‘this subsection, subsection (i), and section 118(g)(2)(E)’’. 

Deadline. 

Plans. 


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129 STAT. 624 PUBLIC LAW 114–74—NOV. 2, 2015 

(c) ELIGIBLE FEDERAL ENTITIES.—Section 113 of the National 

Telecommunications and Information Administration Organization 

Act (47 U.S.C. 923) is amended— 

(1) in subsection (g)— 

(A) in paragraph (1)— 

(i) by striking ‘‘authorized to use a band of eligible 

frequencies described in paragraph (2) and’’; 

(ii) by inserting ‘‘eligible’’ after ‘‘auction of’’; 

(iii) by inserting ‘‘eligible’’ after ‘‘reallocation of’’; 

and 

(B) in paragraph (3)(A), by striking ‘‘previously 

assigned to such entity or the sharing of spectrum frequencies assigned to such entity’’ and inserting ‘‘or the 

sharing of spectrum frequencies’’; and 

(2) in subsection (h)(1), by striking ‘‘authorized to use any 

such frequency’’. 

SEC. 1006. PLANS FOR AUCTION OF CERTAIN SPECTRUM. 

(a) REPORTS TO CONGRESS.—In accordance with each paragraph 

of subsection (c), the Commission, in coordination with the Assistant 

Secretary, shall submit to the Committee on Energy and Commerce 

of the House of Representatives and the Committee on Commerce, 

Science, and Transportation of the Senate a report containing a 

proposed plan for the assignment of new licenses for non-Federal 

use of the spectrum identified under such paragraph, including— 

(1) an assessment of the operations of Federal entities 

that operate Federal Government stations authorized to use 

such spectrum; 

(2) an estimated timeline for the competitive bidding 

process; and 

(3) a proposed plan for balance between unlicensed and 

licensed use. 

(b) INFORMATION FOR ASSESSMENT OF FEDERAL ENTITY OPERATIONS.—The Assistant Secretary, in coordination with the affected 

Federal entities, shall provide to the Commission the necessary 

information to carry out subsection (a)(1). 

(c) REPORT DEADLINES; IDENTIFICATION OF SPECTRUM.—The 

Commission shall submit reports under subsection (a) as follows: 

(1) Not later than January 1, 2022, for at least 50 megahertz of spectrum (in bands of not less than 10 megahertz 

of contiguous frequencies) below 6 gigahertz, to be identified 

by the Commission, in coordination with the Assistant Secretary, from spectrum other than the spectrum identified under 

section 1004(a). 

(2) Not later than January 1, 2024, for at least 50 megahertz of spectrum (in bands of not less than 10 megahertz 

of contiguous frequencies) below 6 gigahertz, to be identified 

by the Commission, in coordination with the Assistant Secretary, from spectrum other than the spectrum identified under 

paragraph (1) or section 1004(a). 

SEC. 1007. FCC AUCTION AUTHORITY. 

Section 309(j)(11) of the Communications Act of 1934 (47 U.S.C. 

309(j)(11)) is amended by inserting before the period at the end 

the following: ‘‘, except that, with respect to the electromagnetic 

spectrum identified under section 1004(a) of the Spectrum Pipeline 

Act of 2015, such authority shall expire on September 30, 2025’’. 

Expiration date. 


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PUBLIC LAW 114–74—NOV. 2, 2015 129 STAT. 625 

SEC. 1008. REPORTS TO CONGRESS. 

Not later than 3 years after the date of the enactment of 

this Act, the Commission shall submit to Congress— 

(1) a report containing an analysis of the results of the 

rules changes relating to the frequencies between 3550 megahertz and 3650 megahertz; and 

(2) a report containing an analysis of proposals to promote 

and identify additional spectrum bands that can be shared 

between incumbent uses and new licensed, and unlicensed services under such rules and identification of at least 1 gigahertz 

between 6 gigahertz and 57 GHz for such use. 

TITLE XI—REVENUE PROVISIONS 

RELATED TO TAX COMPLIANCE 

SEC. 1101. PARTNERSHIP AUDITS AND ADJUSTMENTS. 

(a) REPEAL OF TEFRA PARTNERSHIP AUDIT RULES.—Chapter 

63 of the Internal Revenue Code of 1986 is amended by striking 

subchapter C (and by striking the item relating to such subchapter 

in the table of subchapters for such chapter). 

(b) REPEAL OF ELECTING LARGE PARTNERSHIP RULES.— 

(1) IN GENERAL.—Subchapter K of chapter 1 of such Code 

is amended by striking part IV (and by striking the item 

relating to such part in the table of parts for such subchapter). 

(2) ASSESSMENT RULES RELATING TO ELECTING LARGE PARTNERSHIPS.—Chapter 63 of such Code is amended by striking 

subchapter D (and by striking the item relating to such subchapter in the table of subchapters for such chapter). 

(c) PARTNERSHIP AUDIT REFORM.— 

(1) IN GENERAL.—Chapter 63 of such Code, as amended 

by the preceding provisions of this section, is amended by 

inserting after subchapter B the following new subchapter: 

‘‘Subchapter C—Treatment of Partnerships 

‘‘PART I—IN GENERAL

‘‘PART II—PARTNERSHIP ADJUSTMENTS

‘‘PART III—PROCEDURE

‘‘PART IV—DEFINITIONS AND SPECIAL RULES

‘‘PART I—IN GENERAL 

‘‘Sec. 6221. Determination at partnership level. 

‘‘Sec. 6222. Partner’s return must be consistent with partnership return. 

‘‘Sec. 6223. Designation of partnership representative. 

‘‘SEC. 6221. DETERMINATION AT PARTNERSHIP LEVEL. 

‘‘(a) IN GENERAL.—Any adjustment to items of income, gain, 

loss, deduction, or credit of a partnership for a partnership taxable 

year (and any partner’s distributive share thereof) shall be determined, any tax attributable thereto shall be assessed and collected, 

and the applicability of any penalty, addition to tax, or additional 

amount which relates to an adjustment to any such item or share 

shall be determined, at the partnership level pursuant to this 

subchapter. 

26 USC 6221. 

26 USC 

prec. 6621. 

26 USC 

prec. 6221. 

26 USC 2601, 

6221–6231, 6233, 

6234. 


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129 STAT. 626 PUBLIC LAW 114–74—NOV. 2, 2015 

‘‘(b) ELECTION OUT FOR CERTAIN PARTNERSHIPS WITH 100 OR

FEWER PARTNERS, ETC.— ‘‘(1) IN GENERAL.—This subchapter shall not apply with 

respect to any partnership for any taxable year if— 

‘‘(A) the partnership elects the application of this subsection for such taxable year, 

‘‘(B) for such taxable year the partnership is required 

to furnish 100 or fewer statements under section 6031(b) 

with respect to its partners, 

‘‘(C) each of the partners of such partnership is an 

individual, a C corporation, any foreign entity that would 

be treated as a C corporation were it domestic, an S corporation, or an estate of a deceased partner, 

‘‘(D) the election— 

‘‘(i) is made with a timely filed return for such 

taxable year, and 

‘‘(ii) includes (in the manner prescribed by the 

Secretary) a disclosure of the name and taxpayer 

identification number of each partner of such partnership, and 

‘‘(E) the partnership notifies each such partner of such 

election in the manner prescribed by the Secretary. 

‘‘(2) SPECIAL RULES RELATING TO CERTAIN PARTNERS.— 

‘‘(A) S CORPORATION PARTNERS.—In the case of a 

partner that is an S corporation— 

‘‘(i) the partnership shall only be treated as 

meeting the requirements of paragraph (1)(C) with 

respect to such partner if such partnership includes 

(in the manner prescribed by the Secretary) a disclosure of the name and taxpayer identification number 

of each person with respect to whom such S corporation 

is required to furnish a statement under section 

6037(b) for the taxable year of the S corporation ending 

with or within the partnership taxable year for which 

the application of this subsection is elected, and 

‘‘(ii) the statements such S corporation is required 

to so furnish shall be treated as statements furnished 

by the partnership for purposes of paragraph (1)(B). 

‘‘(B) FOREIGN PARTNERS.—For purposes of paragraph 

(1)(D)(ii), the Secretary may provide for alternative identification of any foreign partners. 

‘‘(C) OTHER PARTNERS.—The Secretary may by regulation or other guidance prescribe rules similar to the rules 

of subparagraph (A) with respect to any partners not 

described in such subparagraph or paragraph (1)(C). 

‘‘SEC. 6222. PARTNER’S RETURN MUST BE CONSISTENT WITH PARTNERSHIP RETURN. 

‘‘(a) IN GENERAL.—A partner shall, on the partner’s return, 

treat each item of income, gain, loss, deduction, or credit attributable to a partnership in a manner which is consistent with 

the treatment of such income, gain, loss, deduction, or credit on 

the partnership return. 

‘‘(b) UNDERPAYMENT DUE TO INCONSISTENT TREATMENT

ASSESSED AS MATH ERROR.—Any underpayment of tax by a partner 

by reason of failing to comply with the requirements of subsection 

(a) shall be assessed and collected in the same manner as if such 

26 USC 6222. 

Notification. 


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PUBLIC LAW 114–74—NOV. 2, 2015 129 STAT. 627 

underpayment were on account of a mathematical or clerical error 

appearing on the partner’s return. Paragraph (2) of section 6213(b) 

shall not apply to any assessment of an underpayment referred 

to in the preceding sentence. 

‘‘(c) EXCEPTION FOR NOTIFICATION OF INCONSISTENT TREATMENT.— 

‘‘(1) IN GENERAL.—In the case of any item referred to in 

subsection (a), if— 

‘‘(A)(i) the partnership has filed a return but the partner’s treatment on the partner’s return is (or may be) 

inconsistent with the treatment of the item on the partnership return, or 

‘‘(ii) the partnership has not filed a return, and 

‘‘(B) the partner files with the Secretary a statement 

identifying the inconsistency, 

subsections (a) and (b) shall not apply to such item. 

‘‘(2) PARTNER RECEIVING INCORRECT INFORMATION.—A 

partner shall be treated as having complied with subparagraph 

(B) of paragraph (1) with respect to an item if the partner— 

‘‘(A) demonstrates to the satisfaction of the Secretary 

that the treatment of the item on the partner’s return 

is consistent with the treatment of the item on the statement furnished to the partner by the partnership, and 

‘‘(B) elects to have this paragraph apply with respect 

to that item. 

‘‘(d) FINAL DECISION ON CERTAIN POSITIONS NOT BINDING ON

PARTNERSHIP.—Any final decision with respect to an inconsistent 

position identified under subsection (c) in a proceeding to which 

the partnership is not a party shall not be binding on the partnership. 

‘‘(e) ADDITION TO TAX FOR FAILURE TO COMPLY WITH SECTION.— 

For addition to tax in the case of a partner’s disregard of the 

requirements of this section, see part II of subchapter A of chapter 

68. 

‘‘SEC. 6223. PARTNERS BOUND BY ACTIONS OF PARTNERSHIP. 

‘‘(a) DESIGNATION OF PARTNERSHIP REPRESENTATIVE.—Each 

partnership shall designate (in the manner prescribed by the Secretary) a partner (or other person) with a substantial presence 

in the United States as the partnership representative who shall 

have the sole authority to act on behalf of the partnership under 

this subchapter. In any case in which such a designation is not 

in effect, the Secretary may select any person as the partnership 

representative. 

‘‘(b) BINDING EFFECT.—A partnership and all partners of such 

partnership shall be bound— 

‘‘(1) by actions taken under this subchapter by the partnership, and 

‘‘(2) by any final decision in a proceeding brought under 

this subchapter with respect to the partnership. 

‘‘PART II—PARTNERSHIP ADJUSTMENTS 

‘‘Sec. 6225. Partnership adjustment by Secretary. 

‘‘Sec. 6226. Alternative to payment of imputed underpayment by partnership. 

‘‘Sec. 6227. Administrative adjustment request by partnership. 

26 USC 

prec. 6225. 

26 USC 6223. 


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129 STAT. 628 PUBLIC LAW 114–74—NOV. 2, 2015 

‘‘SEC. 6225. PARTNERSHIP ADJUSTMENT BY SECRETARY. 

‘‘(a) IN GENERAL.—In the case of any adjustment by the Secretary in the amount of any item of income, gain, loss, deduction, 

or credit of a partnership, or any partner’s distributive share 

thereof— 

‘‘(1) the partnership shall pay any imputed underpayment 

with respect to such adjustment in the adjustment year as 

provided in section 6232, and 

‘‘(2) any adjustment that does not result in an imputed 

underpayment shall be taken into account by the partnership 

in the adjustment year— 

‘‘(A) except as provided in subparagraph (B), as a reduction in non-separately stated income or an increase in 

non-separately stated loss (whichever is appropriate) under 

section 702(a)(8), or 

‘‘(B) in the case of an item of credit, as a separately 

stated item. 

‘‘(b) DETERMINATION OF IMPUTED UNDERPAYMENTS.—For purposes of this subchapter— 

‘‘(1) IN GENERAL.—Except as provided in subsection (c), 

any imputed underpayment with respect to any partnership 

adjustment for any reviewed year shall be determined— 

‘‘(A) by netting all adjustments of items of income, 

gain, loss, or deduction and multiplying such net amount 

by the highest rate of tax in effect for the reviewed year 

under section 1 or 11, 

‘‘(B) by treating any net increase or decrease in loss 

under subparagraph (A) as a decrease or increase, respectively, in income, and 

‘‘(C) by taking into account any adjustments to items 

of credit as an increase or decrease, as the case may be, 

in the amount determined under subparagraph (A). 

‘‘(2) ADJUSTMENTS TO DISTRIBUTIVE SHARES OF PARTNERS

NOT NETTED.—In the case of any adjustment which reallocates 

the distributive share of any item from one partner to another, 

such adjustment shall be taken into account under paragraph 

(1) by disregarding— 

‘‘(A) any decrease in any item of income or gain, and 

‘‘(B) any increase in any item of deduction, loss, or 

credit. 

‘‘(c) MODIFICATION OF IMPUTED UNDERPAYMENTS.— 

‘‘(1) IN GENERAL.—The Secretary shall establish procedures 

under which the imputed underpayment amount may be modified consistent with the requirements of this subsection. 

‘‘(2) AMENDED RETURNS OF PARTNERS.— 

‘‘(A) IN GENERAL.—Such procedures shall provide that 

if— 

‘‘(i) one or more partners file returns (notwithstanding section 6511) for the taxable year of the partners which includes the end of the reviewed year of 

the partnership, 

‘‘(ii) such returns take into account all adjustments 

under subsection (a) properly allocable to such partners 

(and for any other taxable year with respect to which 

any tax attribute is affected by reason of such adjustments), and 

Procedures. 

26 USC 6225. 


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PUBLIC LAW 114–74—NOV. 2, 2015 129 STAT. 629 

‘‘(iii) payment of any tax due is included with 

such return, 

then the imputed underpayment amount shall be determined without regard to the portion of the adjustments 

so taken into account. 

‘‘(B) REALLOCATION OF DISTRIBUTIVE SHARE.—In the 

case of any adjustment which reallocates the distributive 

share of any item from one partner to another, paragraph 

(2) shall apply only if returns are filed by all partners 

affected by such adjustment. 

‘‘(3) TAX-EXEMPT PARTNERS.—Such procedures shall provide 

for determining the imputed underpayment without regard to 

the portion thereof that the partnership demonstrates is allocable to a partner that would not owe tax by reason of its 

status as a tax-exempt entity (as defined in section 168(h)(2)). 

‘‘(4) MODIFICATION OF APPLICABLE HIGHEST TAX RATES.— ‘‘(A) IN GENERAL.—Such procedures shall provide for 

taking into account a rate of tax lower than the rate 

of tax described in subsection (b)(1)(A) with respect to 

any portion of the imputed underpayment that the partnership demonstrates is allocable to a partner which— 

‘‘(i) in the case of ordinary income, is a C corporation, or 

‘‘(ii) in the case of a capital gain or qualified dividend, is an individual. 

In no event shall the lower rate determined under the 

preceding sentence be less than the highest rate in effect 

with respect to the income and taxpayer described in clause 

(i) or clause (ii), as the case may be. For purposes of 

clause (ii), an S corporation shall be treated as an individual. 

‘‘(B) PORTION OF IMPUTED UNDERPAYMENT TO WHICH

LOWER RATE APPLIES.— 

‘‘(i) IN GENERAL.—Except as provided in clause 

(ii), the portion of the imputed underpayment to which 

the lower rate applies with respect to a partner under 

subparagraph (A) shall be determined by reference 

to the partners’ distributive share of items to which 

the imputed underpayment relates. 

‘‘(ii) RULE IN CASE OF VARIED TREATMENT OF ITEMS

AMONG PARTNERS.—If the imputed underpayment is 

attributable to the adjustment of more than 1 item, 

and any partner’s distributive share of such items is 

not the same with respect to all such items, then 

the portion of the imputed underpayment to which 

the lower rate applies with respect to a partner under 

subparagraph (A) shall be determined by reference 

to the amount which would have been the partner’s 

distributive share of net gain or loss if the partnership 

had sold all of its assets at their fair market value 

as of the close of the reviewed year of the partnership. 

‘‘(5) OTHER PROCEDURES FOR MODIFICATION OF IMPUTED

UNDERPAYMENT.—The Secretary may by regulations or guidance provide for additional procedures to modify imputed underpayment amounts on the basis of such other factors as the 

Secretary determines are necessary or appropriate to carry 

out the purposes of this subsection. 

Determination. 

Applicability. 


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129 STAT. 630 PUBLIC LAW 114–74—NOV. 2, 2015 

‘‘(6) YEAR AND DAY FOR SUBMISSION TO SECRETARY.—Anything required to be submitted pursuant to paragraph (1) shall 

be submitted to the Secretary not later than the close of the 

270-day period beginning on the date on which the notice 

of a proposed partnership adjustment is mailed under section 

6231 unless such period is extended with the consent of the 

Secretary. 

‘‘(7) DECISION OF SECRETARY.—Any modification of the 

imputed underpayment amount under this subsection shall be 

made only upon approval of such modification by the Secretary. 

‘‘(d) DEFINITIONS.—For purposes of this subchapter— 

‘‘(1) REVIEWED YEAR.—The term ‘reviewed year’ means the 

partnership taxable year to which the item being adjusted 

relates. 

‘‘(2) ADJUSTMENT YEAR.—The term ‘adjustment year’ means 

the partnership taxable year in which— 

‘‘(A) in the case of an adjustment pursuant to the 

decision of a court in a proceeding brought under section 

6234, such decision becomes final, 

‘‘(B) in the case of an administrative adjustment 

request under section 6227, such administrative adjustment request is made, or 

‘‘(C) in any other case, notice of the final partnership 

adjustment is mailed under section 6231. 

‘‘SEC. 6226. ALTERNATIVE TO PAYMENT OF IMPUTED UNDERPAYMENT 

BY PARTNERSHIP. 

‘‘(a) IN GENERAL.—If the partnership— 

‘‘(1) not later than 45 days after the date of the notice 

of final partnership adjustment, elects the application of this 

section with respect to an imputed underpayment, and 

‘‘(2) at such time and in such manner as the Secretary 

may provide, furnishes to each partner of the partnership for 

the reviewed year and to the Secretary a statement of the 

partner’s share of any adjustment to income, gain, loss, deduction, or credit (as determined in the notice of final partnership 

adjustment), 

section 6225 shall not apply with respect to such underpayment 

and each such partner shall take such adjustment into account 

as provided in subsection (b). The election under paragraph (1) 

shall be made in such manner as the Secretary may provide and, 

once made, shall be revocable only with the consent of the Secretary. 

‘‘(b) ADJUSTMENTS TAKEN INTO ACCOUNT BY PARTNER.— 

‘‘(1) TAX IMPOSED IN YEAR OF STATEMENT.—Each partner’s 

tax imposed by chapter 1 for the taxable year which includes 

the date the statement was furnished under subsection (a) 

shall be increased by the aggregate of the adjustment amounts 

determined under paragraph (2) for the taxable years referred 

to therein. 

‘‘(2) ADJUSTMENT AMOUNTS.—The adjustment amounts 

determined under this paragraph are— 

‘‘(A) in the case of the taxable year of the partner 

which includes the end of the reviewed year, the amount 

by which the tax imposed under chapter 1 would increase 

if the partner’s share of the adjustments described in subsection (a) were taken into account for such taxable year, 

plus 

Deadline. 

Notice. 

26 USC 6226. 

Deadline. 

Time period. 


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PUBLIC LAW 114–74—NOV. 2, 2015 129 STAT. 631 

‘‘(B) in the case of any taxable year after the taxable 

year referred to in subparagraph (A) and before the taxable 

year referred to in paragraph (1), the amount by which 

the tax imposed under chapter 1 would increase by reason 

of the adjustment to tax attributes under paragraph (3). 

‘‘(3) ADJUSTMENT OF TAX ATTRIBUTES.—Any tax attribute 

which would have been affected if the adjustments described 

in subsection (a) were taken into account for the taxable year 

referred to in paragraph (2)(A) shall— 

‘‘(A) in the case of any taxable year referred to in 

paragraph (2)(B), be appropriately adjusted for purposes 

of applying such paragraph, and 

‘‘(B) in the case of any subsequent taxable year, be 

appropriately adjusted. 

‘‘(c) PENALTIES AND INTEREST.— ‘‘(1) PENALTIES.—Notwithstanding subsections (a) and (b), 

any penalties, additions to tax, or additional amount shall 

be determined as provided under section 6221 and the partners 

of the partnership for the reviewed year shall be liable for 

any such penalty, addition to tax, or additional amount. 

‘‘(2) INTEREST.—In the case of an imputed underpayment 

with respect to which the application of this section is elected, 

interest shall be determined— 

‘‘(A) at the partner level, 

‘‘(B) from the due date of the return for the taxable 

year to which the increase is attributable (determined by 

taking into account any increases attributable to a change 

in tax attributes for a taxable year under subsection (b)(2)), 

and 

‘‘(C) at the underpayment rate under section 6621(a)(2), 

determined by substituting ‘5 percentage points’ for ‘3 

percentage points’ in subparagraph (B) thereof. 

‘‘SEC. 6227. ADMINISTRATIVE ADJUSTMENT REQUEST BY PARTNERSHIP. 

‘‘(a) IN GENERAL.—A partnership may file a request for an 

administrative adjustment in the amount of one or more items 

of income, gain, loss, deduction, or credit of the partnership for 

any partnership taxable year. 

‘‘(b) ADJUSTMENT.—Any such adjustment under subsection (a) 

shall be determined and taken into account for the partnership 

taxable year in which the administrative adjustment request is 

made— 

‘‘(1) by the partnership under rules similar to the rules 

of section 6225 (other than paragraphs (2), (6) and (7) of subsection (c) thereof) for the partnership taxable year in which 

the administrative adjustment request is made, or 

‘‘(2) by the partnership and partners under rules similar 

to the rules of section 6226 (determined without regard to 

the substitution described in subsection (c)(2)(C) thereof). 

In the case of an adjustment that would not result in an imputed 

underpayment, paragraph (1) shall not apply and paragraph (2) 

shall apply with appropriate adjustments. 

‘‘(c) PERIOD OF LIMITATIONS.—A partnership may not file such 

a request more than 3 years after the later of— 

‘‘(1) the date on which the partnership return for such 

year is filed, or 

Applicability. 

Determination. 

26 USC 6227. 

Determination. 


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129 STAT. 632 PUBLIC LAW 114–74—NOV. 2, 2015 

‘‘(2) the last day for filing the partnership return for such 

year (determined without regard to extensions). 

In no event may a partnership file such a request after a notice 

of an administrative proceeding with respect to the taxable year 

is mailed under section 6231. 

‘‘PART 1—PROCEDURE 

‘‘Sec. 6231. Notice of proceedings and adjustment. 

‘‘Sec. 6232. Assessment, collection, and payment. 

‘‘Sec. 6233. Interest and penalties. 

‘‘Sec. 6234. Judicial review of partnership adjustment. 

‘‘Sec. 6235. Period of limitations on making adjustments. 

‘‘SEC. 6231. NOTICE OF PROCEEDINGS AND ADJUSTMENT. 

‘‘(a) IN GENERAL.—The Secretary shall mail to the partnership 

and the partnership representative— 

‘‘(1) notice of any administrative proceeding initiated at 

the partnership level with respect to an adjustment of any 

item of income, gain, loss, deduction, or credit of a partnership 

for a partnership taxable year, or any partner’s distributive 

share thereof, 

‘‘(2) notice of any proposed partnership adjustment 

resulting from such proceeding, and 

‘‘(3) notice of any final partnership adjustment resulting 

from such proceeding. 

Any notice of a final partnership adjustment shall not be mailed 

earlier than 270 days after the date on which the notice of the 

proposed partnership adjustment is mailed. Such notices shall be 

sufficient if mailed to the last known address of the partnership 

representative or the partnership (even if the partnership has terminated its existence). The first sentence shall apply to any proceeding 

with respect to an administrative adjustment request filed by a 

partnership under section 6227. 

‘‘(b) FURTHER NOTICES RESTRICTED.—If the Secretary mails 

a notice of a final partnership adjustment to any partnership for 

any partnership taxable year and the partnership files a petition 

under section 6234 with respect to such notice, in the absence 

of a showing of fraud, malfeasance, or misrepresentation of a material fact, the Secretary shall not mail another such notice to such 

partnership with respect to such taxable year. 

‘‘(c) AUTHORITY TO RESCIND NOTICE WITH PARTNERSHIP CONSENT.—The Secretary may, with the consent of the partnership, 

rescind any notice of a partnership adjustment mailed to such 

partnership. Any notice so rescinded shall not be treated as a 

notice of a partnership adjustment for purposes of this subchapter, 

and the taxpayer shall have no right to bring a proceeding under 

section 6234 with respect to such notice. 

‘‘SEC. 6232. ASSESSMENT, COLLECTION, AND PAYMENT. 

‘‘(a) IN GENERAL.—Any imputed underpayment shall be 

assessed and collected in the same manner as if it were a tax 

imposed for the adjustment year by subtitle A, except that in 

the case of an administrative adjustment request to which section 

6227(b)(1) applies, the underpayment shall be paid when the request 

is filed. 

‘‘(b) LIMITATION ON ASSESSMENT.—Except as otherwise provided 

in this chapter, no assessment of a deficiency may be made (and 

no levy or proceeding in any court for the collection of any amount 

26 USC 6232. 

Deadline. 

Mailings. 

26 USC 6231. 

26 USC 6231 

note. 


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PUBLIC LAW 114–74—NOV. 2, 2015 129 STAT. 633 

resulting from such adjustment may be made, begun or prosecuted) 

before— 

‘‘(1) the close of the 90th day after the day on which 

a notice of a final partnership adjustment was mailed, and 

‘‘(2) if a petition is filed under section 6234 with respect 

to such notice, the decision of the court has become final. 

‘‘(c) PREMATURE ACTION MAY BE ENJOINED.—Notwithstanding 

section 7421(a), any action which violates subsection (b) may be 

enjoined in the proper court, including the Tax Court. The Tax 

Court shall have no jurisdiction to enjoin any action under this 

subsection unless a timely petition has been filed under section 

6234 and then only in respect of the adjustments that are the 

subject of such petition. 

‘‘(d) EXCEPTIONS TO RESTRICTIONS ON ADJUSTMENTS.— ‘‘(1) ADJUSTMENTS ARISING OUT OF MATH OR CLERICAL

ERRORS.— 

‘‘(A) IN GENERAL.— If the partnership is notified that, 

on account of a mathematical or clerical error appearing 

on the partnership return, an adjustment to a item is 

required, rules similar to the rules of paragraphs (1) and 

(2) of section 6213(b) shall apply to such adjustment. 

‘‘(B) SPECIAL RULE.—If a partnership is a partner in 

another partnership, any adjustment on account of such 

partnership’s failure to comply with the requirements of 

section 6222(a) with respect to its interest in such other 

partnership shall be treated as an adjustment referred 

to in subparagraph (A), except that paragraph (2) of section 

6213(b) shall not apply to such adjustment. 

‘‘(2) PARTNERSHIP MAY WAIVE RESTRICTIONS.—The partnership may at any time (whether or not any notice of partnership 

adjustment has been issued), by a signed notice in writing 

filed with the Secretary, waive the restrictions provided in 

subsection (b) on the making of any partnership adjustment. 

‘‘(e) LIMIT WHERE NO PROCEEDING BEGUN.—If no proceeding 

under section 6234 is begun with respect to any notice of a final 

partnership adjustment during the 90-day period described in subsection (b) thereof, the amount for which the partnership is liable 

under section 6225 shall not exceed the amount determined in 

accordance with such notice. 

‘‘SEC. 6233. INTEREST AND PENALTIES. 

‘‘(a) INTEREST AND PENALTIES DETERMINED FROM REVIEWED

YEAR.— 

‘‘(1) IN GENERAL.—Except to the extent provided in section 

6226(c), in the case of a partnership adjustment for a reviewed 

year— 

‘‘(A) interest shall be computed under paragraph (2), 

and 

‘‘(B) the partnership shall be liable for any penalty, 

addition to tax, or additional amount as provided in paragraph (3). 

‘‘(2) DETERMINATION OF AMOUNT OF INTEREST.—The 

interest computed under this paragraph with respect to any 

partnership adjustment is the interest which would be determined under chapter 67 for the period beginning on the day 

after the return due date for the reviewed year and ending 

on the return due date for the adjustment year (or, if earlier, 

Time period. 

26 USC 6233. 

Notice. 

Notification. 

Applicability. 

Courts. 

Time period. 


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129 STAT. 634 PUBLIC LAW 114–74—NOV. 2, 2015 

the date payment of the imputed underpayment is made). 

Proper adjustments in the amount determined under the preceding sentence shall be made for adjustments required for 

partnership taxable years after the reviewed year and before 

the adjustment year by reason of such partnership adjustment. 

‘‘(3) PENALTIES.—Any penalty, addition to tax, or additional 

amount shall be determined at the partnership level as if 

such partnership had been an individual subject to tax under 

chapter 1 for the reviewed year and the imputed underpayment 

were an actual underpayment (or understatement) for such 

year. 

‘‘(b) INTEREST AND PENALTIES WITH RESPECT TO ADJUSTMENT

YEAR RETURN.— 

‘‘(1) IN GENERAL.—In the case of any failure to pay an 

imputed underpayment on the date prescribed therefor, the 

partnership shall be liable— 

‘‘(A) for interest as determined under paragraph (2), 

and 

‘‘(B) for any penalty, addition to tax, or additional 

amount as determined under paragraph (3). 

‘‘(2) INTEREST.—Interest determined under this paragraph 

is the interest that would be determined by treating the 

imputed underpayment as an underpayment of tax imposed 

in the adjustment year. 

‘‘(3) PENALTIES.—Penalties, additions to tax, or additional 

amounts determined under this paragraph are the penalties, 

additions to tax, or additional amounts that would be determined— 

‘‘(A) by applying section 6651(a)(2) to such failure to 

pay, and 

‘‘(B) by treating the imputed underpayment as an 

underpayment of tax for purposes of part II of subchapter 

A of chapter 68. 

‘‘SEC. 6234. JUDICIAL REVIEW OF PARTNERSHIP ADJUSTMENT. 

‘‘(a) IN GENERAL.—Within 90 days after the date on which 

a notice of a final partnership adjustment is mailed under section 

6231 with respect to any partnership taxable year, the partnership 

may file a petition for a readjustment for such taxable year with— 

‘‘(1) the Tax Court, 

‘‘(2) the district court of the United States for the district 

in which the partnership’s principal place of business is located, 

or 

‘‘(3) the Claims Court. 

‘‘(b) JURISDICTIONAL REQUIREMENT FOR BRINGING ACTION IN

DISTRICT COURT OR CLAIMS COURT.— 

‘‘(1) IN GENERAL.—A readjustment petition under this section may be filed in a district court of the United States 

or the Claims Court only if the partnership filing the petition 

deposits with the Secretary, on or before the date the petition 

is filed, the amount of the imputed underpayment (as of the 

date of the filing of the petition) if the partnership adjustment 

was made as provided by the notice of final partnership adjustment. The court may by order provide that the jurisdictional 

requirements of this paragraph are satisfied where there has 

been a good faith attempt to satisfy such requirement and 

Deadline. 

26 USC 6234. 

Determination. 

Determination. 


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PUBLIC LAW 114–74—NOV. 2, 2015 129 STAT. 635 

any shortfall of the amount required to be deposited is timely 

corrected. 

‘‘(2) INTEREST PAYABLE.—Any amount deposited under 

paragraph (1), while deposited, shall not be treated as a payment of tax for purposes of this title (other than chapter 67). 

‘‘(c) SCOPE OF JUDICIAL REVIEW.—A court with which a petition 

is filed in accordance with this section shall have jurisdiction to 

determine all items of income, gain, loss, deduction, or credit of 

the partnership for the partnership taxable year to which the notice 

of final partnership adjustment relates, the proper allocation of 

such items among the partners, and the applicability of any penalty, 

addition to tax, or additional amount for which the partnership 

may be liable under this subchapter. 

‘‘(d) DETERMINATION OF COURT REVIEWABLE.—Any determination by a court under this section shall have the force and effect 

of a decision of the Tax Court or a final judgment or decree of 

the district court or the Claims Court, as the case may be, and 

shall be reviewable as such. The date of any such determination 

shall be treated as being the date of the court’s order entering 

the decision. 

‘‘(e) EFFECT OF DECISION DISMISSING ACTION.—If an action 

brought under this section is dismissed other than by reason of 

a rescission under section 6231(c), the decision of the court dismissing the action shall be considered as its decision that the 

notice of final partnership adjustment is correct, and an appropriate 

order shall be entered in the records of the court. 

‘‘SEC. 6235. PERIOD OF LIMITATIONS ON MAKING ADJUSTMENTS. 

‘‘(a) IN GENERAL.—Except as otherwise provided in this section, 

no adjustment under this subpart for any partnership taxable year 

may be made after the later of— 

‘‘(1) the date which is 3 years after the latest of— 

‘‘(A) the date on which the partnership return for such 

taxable year was filed, 

‘‘(B) the return due date for the taxable year, or 

‘‘(C) the date on which the partnership filed an 

administrative adjustment request with respect to such 

year under section 6227, or 

‘‘(2) in the case of any modification of an imputed underpayment under section 6225(c), the date that is 270 days (plus 

the number of days of any extension consented to by the Secretary under paragraph (4) thereof) after the date on which 

everything required to be submitted to the Secretary pursuant 

to such section is so submitted, or 

‘‘(3) in the case of any notice of a proposed partnership 

adjustment under section 6231(a)(2), the date that is 270 days 

after the date of such notice. 

‘‘(b) EXTENSION BY AGREEMENT.—The period described in subsection (a) (including an extension period under this subsection) 

may be extended by an agreement entered into by the Secretary 

and the partnership before the expiration of such period. 

‘‘(c) SPECIAL RULE IN CASE OF FRAUD, ETC.— 

‘‘(1) FALSE RETURN.—In the case of a false or fraudulent 

partnership return with intent to evade tax, the adjustment 

may be made at any time. 

‘‘(2) SUBSTANTIAL OMISSION OF INCOME.—If any partnership 

omits from gross income an amount properly includible therein 

Applicability. 

26 USC 6235. 


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129 STAT. 636 PUBLIC LAW 114–74—NOV. 2, 2015 

and such amount is described in section 6501(e)(1)(A), subsection (a) shall be applied by substituting ‘6 years’ for ‘3 

years’. 

‘‘(3) NO RETURN.—In the case of a failure by a partnership 

to file a return for any taxable year, the adjustment may 

be made at any time. 

‘‘(4) RETURN FILED BY SECRETARY.—For purposes of this 

section, a return executed by the Secretary under subsection 

(b) of section 6020 on behalf of the partnership shall not be 

treated as a return of the partnership. 

‘‘(d) SUSPENSION WHEN SECRETARY MAILS NOTICE OF ADJUSTMENT.—If notice of a final partnership adjustment with respect 

to any taxable year is mailed under section 6231, the running 

of the period specified in subsection (a) (as modified by the other 

provisions of this section) shall be suspended— 

‘‘(1) for the period during which an action may be brought 

under section 6234 (and, if a petition is filed under such section 

with respect to such notice, until the decision of the court 

becomes final), and 

‘‘(2) for 1 year thereafter. 

‘‘PART 2—DEFINITIONS AND SPECIAL RULES 

‘‘Sec. 6241. Definitions and special rules. 

‘‘SEC. 6241. DEFINITIONS AND SPECIAL RULES. 

‘‘For purposes of this subchapter— 

‘‘(1) PARTNERSHIP.—The term ‘partnership’ means any partnership required to file a return under section 6031(a). 

‘‘(2) PARTNERSHIP ADJUSTMENT.—The term ‘partnership 

adjustment’ means any adjustment in the amount of any item 

of income, gain, loss, deduction, or credit of a partnership, 

or any partner’s distributive share thereof. 

‘‘(3) RETURN DUE DATE.—The term ‘return due date’ means, 

with respect to the taxable year, the date prescribed for filing 

the partnership return for such taxable year (determined without regard to extensions). 

‘‘(4) PAYMENTS NONDEDUCTIBLE.—No deduction shall be 

allowed under subtitle A for any payment required to be made 

by a partnership under this subchapter. 

‘‘(5) PARTNERSHIPS HAVING PRINCIPAL PLACE OF BUSINESS

OUTSIDE UNITED STATES.—For purposes of sections 6234, a principal place of business located outside the United States shall 

be treated as located in the District of Columbia. 

‘‘(6) PARTNERSHIPS IN CASES UNDER TITLE 11 OF UNITED

STATES CODE.— 

‘‘(A) SUSPENSION OF PERIOD OF LIMITATIONS ON MAKING

ADJUSTMENT, ASSESSMENT, OR COLLECTION.—The running 

of any period of limitations provided in this subchapter 

on making a partnership adjustment (or provided by section 

6501 or 6502 on the assessment or collection of any imputed 

underpayment determined under this subchapter) shall, 

in a case under title 11 of the United States Code, be 

suspended during the period during which the Secretary 

is prohibited by reason of such case from making the adjustment (or assessment or collection) and— 

Applicability. 

26 USC 6241. 

26 USC 

prec. 6241. 

Time period. 


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PUBLIC LAW 114–74—NOV. 2, 2015 129 STAT. 637 

‘‘(i) for adjustment or assessment, 60 days thereafter, and 

‘‘(ii) for collection, 6 months thereafter. 

A rule similar to the rule of section 6213(f)(2) shall apply 

for purposes of section 6232(b). 

‘‘(B) SUSPENSION OF PERIOD OF LIMITATION FOR FILING

FOR JUDICIAL REVIEW.—The running of the period specified 

in section 6234 shall, in a case under title 11 of the United 

States Code, be suspended during the period during which 

the partnership is prohibited by reason of such case from 

filing a petition under section 6234 and for 60 days thereafter. 

‘‘(7) TREATMENT WHERE PARTNERSHIP CEASES TO EXIST.— 

If a partnership ceases to exist before a partnership adjustment 

under this subchapter takes effect, such adjustment shall be 

taken into account by the former partners of such partnership 

under regulations prescribed by the Secretary. 

‘‘(8) EXTENSION TO ENTITIES FILING PARTNERSHIP RETURN.— 

If a partnership return is filed by an entity for a taxable 

year but it is determined that the entity is not a partnership 

(or that there is no entity) for such year, then, to the extent 

provided in regulations, the provisions of this subchapter are 

hereby extended in respect of such year to such entity and 

its items and to persons holding an interest in such entity.’’. 

(2) CLERICAL AMENDMENT.—The table of subchapters for 

chapter 63 of the Internal Revenue Code of 1986, as amended 

by the preceding provisions of this section, is amended by 

inserting after the item relating to subchapter B the following 

new item: 

‘‘SUBCHAPTER C. TREATMENT OF PARTNERSHIPS.’’. 

(d) BINDING NATURE OF PARTNERSHIP ADJUSTMENT PROCEEDINGS.—Section 6330(c)(4) of such Code is amended by striking 

‘‘or’’ at the end of subparagraph (A), by striking the period at 

the end of subparagraph (B) and inserting ‘‘; or’’, and by inserting 

after subparagraph (B) the following new subparagraph: 

‘‘(C) a final determination has been made with respect 

to such issue in a proceeding brought under subchapter 

C of chapter 63.’’. 

(e) RESTRICTION ON AUTHORITY TO AMEND PARTNER INFORMATION STATEMENTS.—Section 6031(b) of such Code is amended by 

adding at the end the following: ‘‘Except as provided in the procedures under section 6225(c), with respect to statements under section 6226, or as otherwise provided by the Secretary, information 

required to be furnished by the partnership under this subsection 

may not be amended after the due date of the return under subsection (a) to which such information relates.’’. 

(f) CONFORMING AMENDMENTS.— 

(1) Section 6031(b) of such Code is amended by striking 

the last sentence. 

(2) Section 6422 of such Code is amended by striking paragraph (12). 

(3) Section 6501(n) of such Code is amended by striking 

paragraphs (2) and (3) and by striking ‘‘CROSS REFERENCES’’ 

and all that follows through ‘‘For period of limitations’’ and 

inserting ‘‘CROSS REFERENCE.—For period of limitations’’. 

Determination. 

26 USC 6330. 

26 USC 

prec. 6201. 


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129 STAT. 638 PUBLIC LAW 114–74—NOV. 2, 2015 

(4) Section 6503(a)(1) of such Code is amended by striking 

‘‘(or section 6229’’ and all that follows through ‘‘of section 

6230(a))’’. 

(5) Section 6504 of such Code is amended by striking paragraph (11). 

(6) Section 6511 of such Code is amended by striking subsection (g). 

(7) Section 6512(b)(3) of such Code is amended by striking 

the second sentence. 

(8) Section 6515 of such Code is amended by striking paragraph (6). 

(9) Section 6601(c) of such Code is amended by striking 

the last sentence. 

(10) Section 7421(a) of such Code is amended by striking 

‘‘6225(b), 6246(b)’’ and inserting ‘‘6232(c)’’. 

(11) Section 7422 of such Code is amended by striking 

subsection (h). 

(12) Section 7459(c) of such Code is amended by striking 

‘‘section 6226’’ and all that follows through ‘‘or 6252’’ and 

inserting ‘‘section 6234’’. 

(13) Section 7482(b)(1) of such Code is amended— 

(A) in subparagraph (E), by striking ‘‘section 6226, 

6228, 6247, or 6252’’ and inserting ‘‘section 6234’’, 

(B) by striking subparagraph (F), by striking ‘‘or’’ at 

the end of subparagraph (E) and inserting a period, and 

by inserting ‘‘or’’ at the end of subparagraph (D), and 

(C) in the last sentence, by striking ‘‘section 6226, 

6228(a), or 6234(c)’’ and inserting ‘‘section 6234’’. 

(14) Section 7485(b) of such Code is amended by striking 

‘‘section 6226, 6228(a), 6247, or 6252’’ and inserting ‘‘section 

6234’’. 

(g) EFFECTIVE DATE.— 

(1) IN GENERAL.—Except as otherwise provided in this subsection, the amendments made by this section shall apply to 

returns filed for partnership taxable years beginning after 

December 31, 2017. 

(2) ADMINISTRATIVE ADJUSTMENT REQUESTS.—In the case 

of administrative adjustment request under section 6227 of 

such Code, the amendments made by this section shall apply 

to requests with respect to returns filed for partnership taxable 

years beginning after December 31, 2017. 

(3) ADJUSTED PARTNERS STATEMENTS.—In the case of a 

partnership electing the application of section 6226 of such 

Code, the amendments made by this section shall apply to 

elections with respect to returns filed for partnership taxable 

years beginning after December 31, 2017. 

(4) ELECTION.—A partnership may elect (at such time and 

in such form and manner as the Secretary of the Treasury 

may prescribe) for the amendments made by this section (other 

than the election under section 6221(b) of such Code (as added 

by this Act)) to apply to any return of the partnership filed 

for partnership taxable years beginning after the date of the 

enactment of this Act and before January 1, 2018. 

SEC. 1102. PARTNERSHIP INTERESTS CREATED BY GIFT. 

(a) IN GENERAL.—Section 761(b) of the Internal Revenue Code 

of 1986 is amended by adding at the end the following: ‘‘In the 

Determination. 

Applicability. 

26 USC 6221 

note. 

26 USC 6503. 


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PUBLIC LAW 114–74—NOV. 2, 2015 129 STAT. 639 

LEGISLATIVE HISTORY—H.R. 1314: 

HOUSE REPORTS: No. 114–67 (Comm. on Ways and Means). 

CONGRESSIONAL RECORD, Vol. 161 (2015): 

Apr. 15, considered and passed House. 

May 14, 18–22, considered and passed Senate, amended. 

June 12, House failed to concur in Senate amendment. 

Oct. 28, House concurred in Senate amendment with an amendment. Senate 

considered House amendment. 

Oct. 29, 30, Senate considered and concurred in House amendment. 

DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2015): 

Nov. 2, Presidential remarks. 

Æ 

case of a capital interest in a partnership in which capital is 

a material income-producing factor, whether a person is a partner 

with respect to such interest shall be determined without regard 

to whether such interest was derived by gift from any other person.’’. 

(b) CONFORMING AMENDMENTS.—Section 704(e) of such Code 

is amended— 

(1) by striking paragraph (1) and by redesignating paragraphs (2) and (3) as paragraphs (1) and (2), respectively, 

(2) by striking ‘‘this section’’ in paragraph (2) (as so redesignated) and inserting ‘‘this subsection’’, and 

(3) by striking ‘‘FAMILY PARTNERSHIPS’’ in the heading and 

inserting ‘‘PARTNERSHIP INTERESTS CREATED BY GIFT’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall apply to partnership taxable years beginning after December 

31, 2015. 

TITLE XII—DESIGNATION OF SMALL 

HOUSE ROTUNDA 

SEC. 1201. DESIGNATING SMALL HOUSE ROTUNDA AS ‘‘FREEDOM 

FOYER’’. 

The first floor of the area of the House of Representatives 

wing of the United States Capitol known as the small House 

rotunda is designated the ‘‘Freedom Foyer’’. 

Approved November 2, 2015. 

40 USC 5101 

note. 

Applicability. 

26 USC 704. 

26 USC 704. 


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