Union Calendar No. 67

104TH CONGRESS

1ST SESSION H. R. 1812

[Report No. 104–145]

A BILL

To amend the Internal Revenue Code of 1986 to

zenship.cable to individuals who lose United States citirevise the income, estate, and gift tax rules appliJUNE 16, 1995

Reported with an amendment, committed to the Commitordered to be printed tee of the Whole House on the State of the Union, and
IB

Union Calendar No. 67

104TH CONGRESS

1ST SESSION H. R. 1812

[Report No. 104–145]

To amend the Internal Revenue Code of 1986 to revise the income, estate,

and gift tax rules applicable to individuals who lose United States citizenship.

IN THE HOUSE OF REPRESENTATIVES

JUNE 9, 1995

Mr. ARCHER (for himself and Mrs. JOHNSON of Connecticut) introduced the

following bill; which was referred to the Committee on Ways and Means

JUNE 16, 1995

Reported with an amendment, committed to the Committee of the Whole

House on the State of the Union, and ordered to be printed

[Strike out all after the enacting clause and insert the part printed in italic]

[For text of introduced bill, see copy of bill as introduced on June 9, 1995]

A BILL

To amend the Internal Revenue Code of 1986 to revise

the income, estate, and gift tax rules applicable to individuals who lose United States citizenship.

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

2 This Act may be cited as the ‘‘Expatriation Tax Act

3 of 1995’’.

4 SEC. 2. REVISION OF INCOME, ESTATE, AND GIFT TAXES ON

5 INDIVIDUALS WHO LOSE UNITED STATES

6 CITIZENSHIP.

7 (a) IN GENERAL.—Subsection (a) of section 877 of the

8 Internal Revenue Code of 1986 is amended to read as fol9 lows:

10 ‘‘(a) TREATMENT OF EXPATRIATES.—

11 ‘‘(1) IN GENERAL.—Every nonresident alien in12 dividual who, within the 10-year period immediately

13 preceding the close of the taxable year, lost United

14 States citizenship, unless such loss did not have for 1

15 of its principal purposes the avoidance of taxes under

16 this subtitle or subtitle B, shall be taxable for such

17 taxable year in the manner provided in subsection (b)

18 if the tax imposed pursuant to such subsection exceeds

19 the tax which, without regard to this section, is im20 posed pursuant to section 871.

21 ‘‘(2) CERTAIN INDIVIDUALS TREATED AS HAVING

22 TAX AVOIDANCE PURPOSE.—For purposes of para23 graph (1), an individual shall be treated as having a

24 principal purpose to avoid such taxes if—

25 ‘‘(A) the average annual net income tax (as

26 defined in section 38(c)(1)) of such individual
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1 for the period of 5 taxable years ending before

2 the date of the loss of United States citizenship

3 is greater than $100,000, or

4 ‘‘(B) the net worth of the individual as of

5 such date is $500,000 or more.

6 In the case of the loss of United States citizenship in

7 any calendar year after 1996, such $100,000 and

8 $500,000 amounts shall be increased by an amount

9 equal to such dollar amount multiplied by the cost10 of-living adjustment determined under section 1(f)(3)

11 for such calendar year by substituting ‘1994’ for

12 ‘1992’ in subparagraph (B) thereof. Any increase

13 under the preceding sentence shall be rounded to the

14 nearest multiple of $1,000.’’

15 (b) EXCEPTIONS.—

16 (1) IN GENERAL.—Section 877 of such Code is

17 amended by striking subsection (d), by redesignating

18 subsection (c) as subsection (d), and by inserting after

19 subsection (b) the following new subsection:

20 ‘‘(c) TAX AVOIDANCE NOT PRESUMED IN CERTAIN

21 CASES.—

22 ‘‘(1) IN GENERAL.—Subsection (a)(2) shall not

23 apply to an individual if—
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1 ‘‘(A) such individual is described in a sub2 paragraph of paragraph (2) of this subsection,

3 and

4 ‘‘(B) within the 1-year period beginning on

5 the date of the loss of United States citizenship,

6 such individual submits a ruling request for the

7 Secretary’s determination as to whether such loss

8 has for 1 of its principal purposes the avoidance

9 of taxes under this subtitle or subtitle B.

10 ‘‘(2) INDIVIDUALS DESCRIBED.—

11 ‘‘(A) DUAL CITIZENSHIP, ETC.—An individ12 ual is described in this subparagraph if—

13 ‘‘(i) the individual became at birth a

14 citizen of the United States and a citizen of

15 another country and continues to be a citi16 zen of such other country, or

17 ‘‘(ii) the individual becomes (not later

18 than the close of a reasonable period after

19 loss of United States citizenship) a citizen

20 of the country in which—

21 ‘‘(I) such individual was born,

22 ‘‘(II) if such individual is mar23 ried, such individual’s spouse was

24 born, or
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1 ‘‘(III) either of such individual’s

2 parents were born.

3 ‘‘(B) LONG-TERM FOREIGN RESIDENTS.—An

4 individual is described in this subparagraph if,

5 for each year in the 10-year period ending on the

6 date of loss of United States citizenship, the in7 dividual was present in the United States for 30

8 days or less. The rule of section 7701(b)(3)(D)(ii)

9 shall apply for purposes of this subparagraph.

10 ‘‘(C) RENUNCIATION UPON REACHING AGE

11 OF MAJORITY.—An individual is described in

12 this subparagraph if the individual’s loss of

13 United States citizenship occurs before such individual attains age 181 14 ⁄2.

15 ‘‘(D) INDIVIDUALS SPECIFIED IN REGULA16 TIONS.—An individual is described in this sub17 paragraph if the individual is described in a

18 category of individuals prescribed by regulation

19 by the Secretary.’’

20 (2) TECHNICAL AMENDMENT.—Paragraph (1) of

21 section 877(b) of such Code is amended by striking

22 ‘‘subsection (c)’’ and inserting ‘‘subsection (d)’’.

23 (c) TREATMENT OF PROPERTY DISPOSED OF IN NON24 RECOGNITION TRANSACTIONS; TREATMENT OF DISTRIBU25 TIONS FROM CERTAIN CONTROLLED FOREIGN CORPORA-
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1 TIONS.—Subsection (d) of section 877 of such Code, as re2 designated by subsection (b), is amended to read as follows:

3 ‘‘(d) SPECIAL RULES FOR SOURCE, ETC.—For pur4 poses of subsection (b)—

5 ‘‘(1) SOURCE RULES.—The following items of

6 gross income shall be treated as income from sources

7 within the United States:

8 ‘‘(A) SALE OF PROPERTY.—Gains on the

9 sale or exchange of property (other than stock or

10 debt obligations) located in the United States.

11 ‘‘(B) STOCK OR DEBT OBLIGATIONS.—Gains

12 on the sale or exchange of stock issued by a do13 mestic corporation or debt obligations of United

14 States persons or of the United States, a State

15 or political subdivision thereof, or the District of

16 Columbia.

17 ‘‘(C) INCOME OR GAIN DERIVED FROM CON18 TROLLED FOREIGN CORPORATION.—Any income

19 or gain derived from stock in a foreign corpora20 tion but only—

21 ‘‘(i) if the individual losing United

22 States citizenship owned (within the mean23 ing of section 958(a)), or is considered as

24 owning (by applying the ownership rules of

25 section 958(b)), at any time during the 2-
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1 year period ending on the date of the loss

2 of United States citizenship, more than 50

3 percent of—

4 ‘‘(I) the total combined voting

5 power of all classes of stock entitled to

6 vote of such corporation, or

7 ‘‘(II) the total value of the stock of

8 such corporation, and

9 ‘‘(ii) to the extent such income or gain

10 does not exceed the earnings and profits at11 tributable to such stock which were earned

12 or accumulated before the loss of citizenship

13 and during periods that the ownership re14 quirements of clause (i) are met.

15 ‘‘(2) GAIN RECOGNITION ON CERTAIN EX16 CHANGES.—

17 ‘‘(A) IN GENERAL.—In the case of any ex18 change of property to which this paragraph ap19 plies, notwithstanding any other provision of

20 this title, such property shall be treated as sold

21 for its fair market value on the date of such ex22 change, and any gain shall be recognized for the

23 taxable year which includes such date.

24 ‘‘(B) EXCHANGES TO WHICH PARAGRAPH

25 APPLIES.—This paragraph shall apply to any
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1 exchange during the 10-year period described in

2 subsection (a) if—

3 ‘‘(i) gain would not (but for this para4 graph) be recognized on such exchange in

5 whole or in part for purposes of this sub6 title,

7 ‘‘(ii) income derived from such prop8 erty was from sources within the United

9 States (or, if no income was so derived,

10 would have been from such sources), and

11 ‘‘(iii) income derived from the property

12 acquired in the exchange would be from

13 sources outside the United States.

14 ‘‘(C) EXCEPTION.—Subparagraph (A) shall

15 not apply if the individual enters into an agree16 ment with the Secretary which specifies that any

17 income or gain derived from the property ac18 quired in the exchange (or any other property

19 which has a basis determined in whole or part

20 by reference to such property) during such 10-

21 year period shall be treated as from sources with22 in the United States. If the property transferred

23 in the exchange is disposed of by the person ac24 quiring such property, such agreement shall ter25 minate and any gain which was not recognized
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1 by reason of such agreement shall be recognized

2 as of the date of such disposition.

3 ‘‘(D) SECRETARY MAY EXTEND PERIOD.—

4 To the extent provided in regulations prescribed

5 by the Secretary, subparagraph (B) shall be ap6 plied by substituting the 15-year period begin7 ning 5 years before the loss of United States citi8 zenship for the 10-year period referred to therein.

9 ‘‘(E) SECRETARY MAY REQUIRE RECOGNI10 TION OF GAIN IN CERTAIN CASES.—To the extent

11 provided in regulations prescribed by the Sec12 retary—

13 ‘‘(i) the removal of appreciated tan14 gible personal property from the United

15 States, and

16 ‘‘(ii) any other occurrence which (with17 out recognition of gain) results in a change

18 in the source of the income or gain from

19 property from sources within the United

20 States to sources outside the United States,

21 shall be treated as an exchange to which this

22 paragraph applies.

23 ‘‘(3) SUBSTANTIAL DIMINISHING OF RISKS OF

24 OWNERSHIP.—For purposes of determining whether

25 this section applies to any gain on the sale or ex-
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1 change of any property, the running of the 10-year

2 period described in subsection (a) shall be suspended

3 for any period during which the individual’s risk of

4 loss with respect to the property is substantially di5 minished by—

6 ‘‘(A) the holding of a put with respect to

7 such property (or similar property),

8 ‘‘(B) the holding by another person of a

9 right to acquire the property, or

10 ‘‘(C) a short sale or any other transaction.’’

11 (d) CREDIT FOR FOREIGN TAXES IMPOSED ON UNITED

12 STATES SOURCE INCOME.—

13 (1) Subsection (b) of section 877 of such Code is

14 amended by adding at the end the following new sen15 tence: ‘‘The tax imposed solely by reason of this sec16 tion shall be reduced (but not below zero) by the

17 amount of any income, war profits, and excess profits

18 taxes (within the meaning of section 903) paid to any

19 foreign country or possession of the United States on

20 any income of the taxpayer on which tax is imposed

21 solely by reason of this section.’’

22 (2) Subsection (a) of section 877 of such Code, as

23 amended by subsection (a), is amended by inserting

24 ‘‘(after any reduction in such tax under the last sen25 tence of such subsection)’’ after ‘‘such subsection’’.
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1 (e) COMPARABLE ESTATE AND GIFT TAX TREAT2 MENT.—

3 (1) ESTATE TAX.—

4 (A) IN GENERAL.—Subsection (a) of section

5 2107 of such Code is amended to read as follows:

6 ‘‘(a) TREATMENT OF EXPATRIATES.—

7 ‘‘(1) RATE OF TAX.—A tax computed in accord8 ance with the table contained in section 2001 is here9 by imposed on the transfer of the taxable estate, deter10 mined as provided in section 2106, of every decedent

11 nonresident not a citizen of the United States if,

12 within the 10-year period ending with the date of

13 death, such decedent lost United States citizenship,

14 unless such loss did not have for 1 of its principal

15 purposes the avoidance of taxes under this subtitle or

16 subtitle A.

17 ‘‘(2) CERTAIN INDIVIDUALS TREATED AS HAVING

18 TAX AVOIDANCE PURPOSE.—

19 ‘‘(A) IN GENERAL.—For purposes of para20 graph (1), an individual shall be treated as hav21 ing a principal purpose to avoid such taxes if

22 such individual is so treated under section

23 877(a)(2).
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1 ‘‘(B) EXCEPTION.—Subparagraph (A) shall

2 not apply to a decedent meeting the requirements

3 of section 877(c)(1).’’

4 (B) CREDIT FOR FOREIGN DEATH TAXES.—

5 Subsection (c) of section 2107 of such Code is

6 amended by redesignating paragraph (2) as

7 paragraph (3) and by inserting after paragraph

8 (1) the following new paragraph:

9 ‘‘(2) CREDIT FOR FOREIGN DEATH TAXES.—

10 ‘‘(A) IN GENERAL.—The tax imposed by

11 subsection (a) shall be credited with the amount

12 of any estate, inheritance, legacy, or succession

13 taxes actually paid to any foreign country in re14 spect of any property which is included in the

15 gross estate solely by reason of subsection (b).

16 ‘‘(B) LIMITATION ON CREDIT.—The credit

17 allowed by subparagraph (A) for such taxes paid

18 to a foreign country shall not exceed the lesser

19 of—

20 ‘‘(i) the amount which bears the same

21 ratio to the amount of such taxes actually

22 paid to such foreign country in respect of

23 property included in the gross estate as the

24 value of the property included in the gross

25 estate solely by reason of subsection (b)
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1 bears to the value of all property subjected

2 to such taxes by such foreign country, or

3 ‘‘(ii) such property’s proportionate

4 share of the excess of—

5 ‘‘(I) the tax imposed by subsection

6 (a), over

7 ‘‘(II) the tax which would be im8 posed by section 2101 but for this sec9 tion.

10 ‘‘(C) PROPORTIONATE SHARE.—For pur11 poses of subparagraph (B), a property’s propor12 tionate share is the percentage which the value of

13 the property which is included in the gross estate

14 solely by reason of subsection (b) bears to the

15 total value of the gross estate.’’

16 (C) EXPANSION OF INCLUSION IN GROSS ES17 TATE OF STOCK OF FOREIGN CORPORATIONS.—

18 Paragraph (2) of section 2107(b) of such Code is

19 amended by striking ‘‘more than 50 percent of’’

20 and all that follows and inserting ‘‘more than 50

21 percent of—

22 ‘‘(A) the total combined voting power of all

23 classes of stock entitled to vote of such corpora24 tion, or
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1 ‘‘(B) the total value of the stock of such cor2 poration,’’.

3 (2) GIFT TAX.—

4 (A) IN GENERAL.—Paragraph (3) of section

5 2501(a) of such Code is amended to read as fol6 lows:

7 ‘‘(3) EXCEPTION.—

8 ‘‘(A) CERTAIN INDIVIDUALS.—Paragraph

9 (2) shall not apply in the case of a donor who,

10 within the 10-year period ending with the date

11 of transfer, lost United States citizenship, unless

12 such loss did not have for 1 of its principal pur13 poses the avoidance of taxes under this subtitle or

14 subtitle A.

15 ‘‘(B) CERTAIN INDIVIDUALS TREATED AS

16 HAVING TAX AVOIDANCE PURPOSE.—For pur17 poses of subparagraph (A), an individual shall

18 be treated as having a principal purpose to

19 avoid such taxes if such individual is so treated

20 under section 877(a)(2).

21 ‘‘(C) EXCEPTION FOR CERTAIN INDIVID22 UALS.—Subparagraph (B) shall not apply to a

23 decedent meeting the requirements of section

24 877(c)(1).
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1 ‘‘(D) CREDIT FOR FOREIGN GIFT TAXES.—

2 The tax imposed by this section solely by reason

3 of this paragraph shall be credited with the

4 amount of any gift tax actually paid to any for5 eign country in respect of any gift which is tax6 able under this section solely by reason of this

7 paragraph.’’

8 (f) COMPARABLE TREATMENT OF LAWFUL PERMA9 NENT RESIDENTS WHO CEASE TO BE TAXED AS RESI10 DENTS.—

11 (1) IN GENERAL.—Section 877 of such Code is

12 amended by redesignating subsection (e) as subsection

13 (f) and by inserting after subsection (d) the following

14 new subsection:

15 ‘‘(e) COMPARABLE TREATMENT OF LAWFUL PERMA16 NENT RESIDENTS WHO CEASE TO BE TAXED AS RESI17 DENTS.—

18 ‘‘(1) IN GENERAL.—Any long-term resident of

19 the United States who—

20 ‘‘(A) ceases to be a lawful permanent resi21 dent of the United States (within the meaning of

22 section 7701(b)(6)), or

23 ‘‘(B) commences to be treated as a resident

24 of a foreign country under the provisions of a

25 tax treaty between the United States and the for-
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1 eign country and who does not waive the benefits

2 of such treaty applicable to residents of the for3 eign country,

4 shall be treated for purposes of this section and sec5 tions 2107, 2501, and 6039F in the same manner as

6 if such resident were a citizen of the United States

7 who lost United States citizenship on the date of such

8 cessation or commencement.

9 ‘‘(2) LONG-TERM RESIDENT.—For purposes of

10 this subsection, the term ‘long-term resident’ means

11 any individual (other than a citizen of the United

12 States) who is a lawful permanent resident of the

13 United States in at least 8 taxable years during the

14 period of 15 taxable years ending with the taxable

15 year during which the event described in subpara16 graph (A) or (B) of paragraph (1) occurs. For pur17 poses of the preceding sentence, an individual shall

18 not be treated as a lawful permanent resident for any

19 taxable year if such individual is treated as a resi20 dent of a foreign country for the taxable year under

21 the provisions of a tax treaty between the United

22 States and the foreign country and does not waive the

23 benefits of such treaty applicable to residents of the

24 foreign country.

25 ‘‘(3) SPECIAL RULES.—
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1 ‘‘(A) EXCEPTIONS NOT TO APPLY.—Sub2 section (c) shall not apply to an individual who

3 is treated as provided in paragraph (1).

4 ‘‘(B) STEP-UP IN BASIS.—Solely for pur5 poses of determining any tax imposed by reason

6 of this subsection, property which was held by

7 the long-term resident on the date the individual

8 first became a resident of the United States shall

9 be treated as having a basis on such date of not

10 less than the fair market value of such property

11 on such date. The preceding sentence shall not

12 apply if the individual elects not to have such

13 sentence apply. Such an election, once made,

14 shall be irrevocable.

15 ‘‘(4) AUTHORITY TO EXEMPT INDIVIDUALS.—

16 This subsection shall not apply to an individual who

17 is described in a category of individuals prescribed by

18 regulation by the Secretary.

19 ‘‘(5) REGULATIONS.—The Secretary shall pre20 scribe such regulations as may be appropriate to

21 carry out this subsection, including regulations pro22 viding for the application of this subsection in cases

23 where an alien individual becomes a resident of the

24 United States during the 10-year period after being

25 treated as provided in paragraph (1).’’
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1 (2) CONFORMING AMENDMENTS.—

2 (A) Section 2107 of such Code is amended

3 by striking subsection (d), by redesignating sub4 section (e) as subsection (d), and by inserting

5 after subsection (d) (as so redesignated) the fol6 lowing new subsection:

7 ‘‘(e) CROSS REFERENCE.—

‘‘For comparable treatment of long-term lawful

permanent residents who ceased to be taxed as residents, see section 877(e).’’

8 (B) Paragraph (3) of section 2501(a) of

9 such Code (as amended by subsection (e)) is

10 amended by adding at the end the following new

11 subparagraph:

12 ‘‘(E) CROSS REFERENCE.—

‘‘For comparable treatment of long-term lawful

permanent residents who ceased to be taxed as residents, see section 877(e).’’

13 (g) EFFECTIVE DATE.—

14 (1) IN GENERAL.—The amendments made by

15 this section shall apply to—

16 (A) individuals losing United States citi17 zenship (within the meaning of section 877 of the

18 Internal Revenue Code of 1986) on or after Feb19 ruary 6, 1995, and

20 (B) long-term residents of the United States

21 with respect to whom an event described in sub-
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1 paragraph (A) or (B) of section 877(e)(1) of such

2 Code occurs on or after June 13, 1995.

3 (2) SPECIAL RULE.—

4 (A) IN GENERAL.—In the case of an indi5 vidual who performed an act of expatriation

6 specified in paragraph (1), (2), (3), or (4) of sec7 tion 349(a) of the Immigration and Nationality

8 Act (8 U.S.C. 1481(a)(1)–(4)) before February 6,

9 1995, but who did not, on or before such date,

10 furnish to the United States Department of State

11 a signed statement of voluntary relinquishment

12 of United States nationality confirming the per13 formance of such act, the amendments made by

14 this section shall apply to such individual except

15 that—

16 (i) the 10-year period described in sec17 tion 877(a) of such Code shall not expire be18 fore the end of the 10-year period beginning

19 on the date such statement is so furnished,

20 and

21 (ii) the 1-year period referred to in sec22 tion 877(c) of such Code, as amended by

23 this section, shall not expire before the date

24 which is 1 year after the date of the enact25 ment of this Act.
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1 (B) EXCEPTION.—Subparagraph (A) shall

2 not apply if the individual establishes to the sat3 isfaction of the Secretary of the Treasury that

4 such loss of United States citizenship occurred

5 before February 6, 1994.

6 SEC. 3. INFORMATION ON INDIVIDUALS LOSING UNITED

7 STATES CITIZENSHIP.

8 (a) IN GENERAL.—Subpart A of part III of subchapter

9 A of chapter 61 of the Internal Revenue Code of 1986 is

10 amended by inserting after section 6039E the following new

11 section:

12 ‘‘SEC. 6039F. INFORMATION ON INDIVIDUALS LOSING

13 UNITED STATES CITIZENSHIP.

14 ‘‘(a) IN GENERAL.—Notwithstanding any other provi15 sion of law, any individual who loses United States citizen16 ship (within the meaning of section 877(a)) shall provide

17 a statement which includes the information described in

18 subsection (b). Such statement shall be—

19 ‘‘(1) provided not later than the earliest date of

20 any act referred to in subsection (c), and

21 ‘‘(2) provided to the person or court referred to

22 in subsection (c) with respect to such act.

23 ‘‘(b) INFORMATION TO BE PROVIDED.—Information

24 required under subsection (a) shall include—

25 ‘‘(1) the taxpayer’s TIN,
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1 ‘‘(2) the mailing address of such individual’s

2 principal foreign residence,

3 ‘‘(3) the foreign country in which such individ4 ual is residing,

5 ‘‘(4) the foreign country of which such individual

6 is a citizen,

7 ‘‘(5) in the case of an individual having a net

8 worth of at least the dollar amount applicable under

9 section 877(a)(2)(B), information detailing the assets

10 and liabilities of such individual, and

11 ‘‘(6) such other information as the Secretary

12 may prescribe.

13 ‘‘(c) ACTS DESCRIBED.—For purposes of this section,

14 the acts referred to in this subsection are—

15 ‘‘(1) the individual’s renunciation of his United

16 States nationality before a diplomatic or consular of17 ficer of the United States pursuant to paragraph (5)

18 of section 349(a) of the Immigration and Nationality

19 Act (8 U.S.C. 1481(a)(5)),

20 ‘‘(2) the individual’s furnishing to the United

21 States Department of State a signed statement of vol22 untary relinquishment of United States nationality

23 confirming the performance of an act of expatriation

24 specified in paragraph (1), (2), (3), or (4) of section
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1 349(a) of the Immigration and Nationality Act (8

2 U.S.C. 1481(a)(1)–(4)),

3 ‘‘(3) the issuance by the United States Depart4 ment of State of a certificate of loss of nationality to

5 the individual, or

6 ‘‘(4) the cancellation by a court of the United

7 States of a naturalized citizen’s certificate of natu8 ralization.

9 ‘‘(d) PENALTY.—Any individual failing to provide a

10 statement required under subsection (a) shall be subject to

11 a penalty for each year (of the 10-year period beginning

12 on the date of loss of United States citizenship) during any

13 portion of which such failure continues in an amount equal

14 to the greater of—

15 ‘‘(1) 5 percent of the tax required to be paid

16 under section 877 for the taxable year ending during

17 such year, or

18 ‘‘(2) $1,000,

19 unless it is shown that such failure is due to reasonable

20 cause and not to willful neglect.

21 ‘‘(e) INFORMATION TO BE PROVIDED TO SEC22 RETARY.—Notwithstanding any other provision of law—

23 ‘‘(1) any Federal agency or court which collects

24 (or is required to collect) the statement under sub25 section (a) shall provide to the Secretary—
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1 ‘‘(A) a copy of any such statement, and

2 ‘‘(B) the name (and any other identifying

3 information) of any individual refusing to com4 ply with the provisions of subsection (a),

5 ‘‘(2) the Secretary of State shall provide to the

6 Secretary a copy of each certificate as to the loss of

7 American nationality under section 358 of the Immi8 gration and Nationality Act which is approved by the

9 Secretary of State, and

10 ‘‘(3) the Federal agency primarily responsible for

11 administering the immigration laws shall provide to

12 the Secretary the name of each lawful permanent resi13 dent of the United States (within the meaning of sec14 tion 7701(b)(6)) whose status as such has been re15 voked or has been administratively or judicially de16 termined to have been abandoned.

17 Notwithstanding any other provision of law, not later than

18 30 days after the close of each calendar quarter, the Sec19 retary shall publish in the Federal Register the name of

20 each individual losing United States citizenship (within the

21 meaning of section 877(a)) with respect to whom the Sec22 retary receives information under the preceding sentence

23 during such quarter.

24 ‘‘(f) REPORTING BY LONG-TERM LAWFUL PERMANENT

25 RESIDENTS WHO CEASE TO BE TAXED AS RESIDENTS.—
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1 In lieu of applying the last sentence of subsection (a), any

2 individual who is required to provide a statement under

3 this section by reason of section 877(e)(1) shall provide such

4 statement with the return of tax imposed by chapter 1 for

5 the taxable year during which the event described in such

6 section occurs.

7 ‘‘(g) EXEMPTION.—The Secretary may by regulations

8 exempt any class of individuals from the requirements of

9 this section if he determines that applying this section to

10 such individuals is not necessary to carry out the purposes

11 of this section.’’

12 (b) CLERICAL AMENDMENT.—The table of sections for

13 such subpart A is amended by inserting after the item relat14 ing to section 6039E the following new item:

‘‘Sec. 6039F. Information on individuals losing United States citizenship.’’

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

16 section shall apply to—

17 (1) individuals losing United States citizenship

18 (within the meaning of section 877 of the Internal

19 Revenue Code of 1986) after the date of the enactment

20 of this Act, and

21 (2) long-term residents of the United States with

22 respect to whom an event described in subparagraph

23 (A) or (B) of section 877(e)(1) of such Code occurs

24 after such date.
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1 SEC. 4. REPORT ON TAX COMPLIANCE BY UNITED STATES

2 CITIZENS AND RESIDENTS LIVING ABROAD.

3 Not later than 90 days after the date of the enactment

4 of this Act, the Secretary of the Treasury shall prepare and

5 submit to the Committee on Ways and Means of the House

6 of Representatives and the Committee on Finance of the

7 Senate a report—

8 (1) describing the compliance with subtitle A of

9 the Internal Revenue Code of 1986 by citizens and

10 lawful permanent residents of the United States

11 (within the meaning of section 7701(b)(6) of such

12 Code) residing outside the United States, and

13 (2) recommending measures to improve such

14 compliance (including improved coordination between

15 executive branch agencies).

HR 1812 RH——2