I 

115TH CONGRESS 

1ST SESSION H. R. 2136 

To amend the Internal Revenue Code of 1986 to provide an exception from 

certain reporting requirements with respect to the foreign accounts of 

individuals who live abroad. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 25, 2017 

Mrs. CAROLYN B. MALONEY of New York introduced the following bill; which 

was referred to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to provide 

an exception from certain reporting requirements with 

respect to the foreign accounts of individuals who live 

abroad. 

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

3 SECTION 1. EXCEPTION TO CERTAIN REPORTING REQUIRE4 MENTS APPLICABLE TO FOREIGN FINANCIAL 

5 INSTITUTIONS WITH RESPECT TO CERTAIN 

6 INDIVIDUALS WHO LIVE ABROAD. 

7 (a) IN GENERAL.—Section 1471(d)(1) of the Inter8 nal Revenue Code of 1986 is amended by redesignating 


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1 subparagraph (C) as subparagraph (D) and by inserting 

2 after subparagraph (B) the following new subparagraph: 

3 ‘‘(C) EXCEPTION FOR CERTAIN INDIVID4 UALS WHO LIVE ABROAD.— 

5 ‘‘(i) IN GENERAL.—Unless the foreign 

6 financial institution elects to not have this 

7 subparagraph apply, such term shall not 

8 include any depository account maintained 

9 by such financial institution if each holder 

10 of such account is— 

11 ‘‘(I) a natural person, and 

12 ‘‘(II) a qualified individual with 

13 respect to a foreign country in which 

14 such foreign financial institution is li15 censed to conduct business. 

16 ‘‘(ii) QUALIFIED INDIVIDUAL.—For 

17 purposes of this subparagraph, an indi18 vidual is a qualified individual with respect 

19 to any foreign country if such individual 

20 would be a qualified individual under sec21 tion 911(d) if the only foreign country 

22 taken into account under such section were 

23 such foreign country.’’. 

24 (b) EFFECTIVE DATE.— 


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

2 this section shall take effect on the date of the en3 actment of this Act. 

4 (2) MODIFICATION OF AGREEMENTS.—At the 

5 request of any foreign financial institution, the Sec6 retary of the Treasury (or the Secretary’s delegate) 

7 shall, as promptly as is practicable, modify any 

8 agreement which is in effect between the Secretary 

9 and such foreign financial institution under section 

10 1471 of the Internal Revenue Code of 1986 to take 

11 into account the amendments made by this section. 

12 SEC. 2. EXCEPTION FOR CERTAIN INDIVIDUALS WHO LIVE 

13 ABROAD TO CERTAIN REPORTING REQUIRE14 MENTS APPLICABLE TO INDIVIDUALS WITH 

15 FOREIGN FINANCIAL ASSETS. 

16 (a) IN GENERAL.—Section 6038D of the Internal 

17 Revenue Code of 1986 is amended by redesignating sub18 section (h) as subsection (i) and by inserting after sub19 section (g) the following new subsection: 

20 ‘‘(h) EXCEPTION FOR CERTAIN FINANCIAL AC21 COUNTS OF INDIVIDUALS LIVING ABROAD.— 

22 ‘‘(1) IN GENERAL.—In the case of a qualified 

23 individual with respect to any foreign country, sub24 section (a) shall not apply to such individual for any 

25 taxable year if such individual would not be required 


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1 to provide any information under such subsection for 

2 such taxable year if the qualified foreign accounts in 

3 which such individual holds an interest were not 

4 taken into account as specified foreign financial as5 sets for purposes of this section. 

6 ‘‘(2) QUALIFIED FOREIGN ACCOUNT.—For pur7 poses of this subsection, the term ‘qualified foreign 

8 account’ means, with respect to any qualified indi9 vidual, any account described in subsection (b)(1) 

10 which is maintained by a financial institution which 

11 is licensed to conduct business in the foreign country 

12 with respect to which such individual is a qualified 

13 individual. 

14 ‘‘(3) QUALIFIED INDIVIDUAL.—For purposes of 

15 this subsection, an individual is a qualified indi16 vidual with respect to any foreign country if such in17 dividual would be a qualified individual under sec18 tion 911(d) if the only foreign country taken into ac19 count under such section were such foreign coun20 try.’’. 

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

22 this section shall apply to taxable years beginning after 

23 the date of the enactment of this Act. 

Æ 


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