I

104TH CONGRESS

1ST SESSION H. R. 1183

To amend title II of the Social Security Act to provide more appropriate

remedies for failures to report information relating to the earnings test.

IN THE HOUSE OF REPRESENTATIVES

MARCH 9, 1995

Mrs. MALONEY introduced the following bill; which was referred to the

Committee on Ways and Means

A BILL

To amend title II of the Social Security Act to provide

more appropriate remedies for failures to report information relating to the earnings test.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Social Security Sanc5 tions Reform Act of 1995’’.

6 SEC. 2. ADJUSTMENT IN PENALTIES FOR FAILURE TO FILE

7 REQUIRED REPORTS RELATING TO THE

8 EARNINGS TEST.

9 (a) PENALTY FOR FAILURE TO REPORT CERTAIN

10 EVENTS.—Section 203(g) of the Social Security Act (42
2

•HR 1183 IH

1 U.S.C. 403(g)) is amended by striking paragraphs (1),

2 (2), and (3) and inserting the following new paragraphs:

3 ‘‘(1) if such failure is the first one with respect

4 to which an additional deduction is imposed by this

5 subsection, such additional deduction shall be equal

6 to 10 percent of the lesser of—

7 ‘‘(A) the amount of his benefit or benefits

8 for the first month of the period for which there

9 is a failure to report even though such failure

10 is with respect to more than one month, or

11 ‘‘(B) the excess earnings for the taxable

12 year involved; and

13 ‘‘(2) if such failure is the second or a subse14 quent one for which an additional deduction is im15 posed under this subsection, such additional deduc16 tion shall be equal to the greater of—

17 ‘‘(A) the amount of his benefit or benefits

18 for the first month of the period for which there

19 is a failure to report even though the failure to

20 report is with respect to more than two months,

21 or

22 ‘‘(B) the excess earnings for the taxable

23 year involved;’’.

24 (b) FAILURE TO REPORT EARNINGS.—Section

25 203(h)(2) of such Act (42 U.S.C. 403(h)(2)) is amended
3

•HR 1183 IH

1 by striking subparagraphs (A), (B), and (C) and inserting

2 the following:

3 ‘‘(A) if such failure is the first one with respect

4 to which an additional deduction is imposed under

5 this paragraph, such additional deduction shall be

6 equal to 10 percent of the lesser of—

7 ‘‘(i) the amount of his benefit or benefits

8 for the last month of such year for which he

9 was entitled to a benefit under section 202, or

10 ‘‘(ii) the excess earnings for such year; and

11 ‘‘(B) if such failure is the second or a subse12 quent one for which an additional deduction is im13 posed under this paragraph, such additional deduc14 tion shall be equal to the greater of—

15 ‘‘(i) the amount of his benefit or benefits

16 for the last month of such year for which he

17 was entitled to a benefit under section 202, or

18 ‘‘(ii) the excess earnings for such year;’’.

19 SEC. 3. EFFECTIVE DATE.

20 The amendments made by this Act shall apply with

21 respect to failures to report for periods or taxable years

22 ending after the date of the enactment of this Act.

Æ