II

103D CONGRESS

2D SESSION S. 1898

To amend the Internal Revenue Code of 1986 to make permanent the section

170(e)(5) rules pertaining to gifts of publicly-traded stock to certain

private foundations, and for other purposes.

IN THE SENATE OF THE UNITED STATES

MARCH 8 (legislative day, FEBRUARY 22), 1994

Mr. RIEGLE introduced the following bill; which was read twice and referred

to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to make

permanent the section 170(e)(5) rules pertaining to gifts

of publicly-traded stock to certain private foundations,

and for other purposes.

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

3 SECTION 1. GIFTS OF QUALIFIED APPRECIATED STOCK TO

4 PRIVATE FOUNDATIONS.

5 (a) IN GENERAL.—Paragraph (5) of section 170(e)

6 of the Internal Revenue Code of 1986 is amended by strik7 ing subparagraph (D).
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1 (b) EFFECTIVE DATE.—The amendment made by

2 subsection (a) shall apply to contributions made after De3 cember 31, 1994.

4 SEC. 2. PRIVATE FOUNDATION GRANTS TO FOREIGN ORGA5 NIZATIONS TREATED AS PRIVATE FOUNDA6 TIONS.

7 (a) IN GENERAL.—Paragraph (3) of section 4942(g)

8 of the Internal Revenue Code of 1986 is amended to read

9 as follows:

10 ‘‘(3) CERTAIN CONTRIBUTIONS TO SECTION

11 501(c)(3) ORGANIZATIONS.—For purposes of this sec12 tion, the term ‘qualifying distribution’ includes a

13 contribution to a section 501(c)(3) organization de14 scribed in paragraph (1)(A) (i) or (ii) if—

15 ‘‘(A) not later than the close of the first

16 taxable year after its taxable year in which such

17 contribution is received—

18 ‘‘(i) such organization makes a dis19 tribution equal to the amount of such con20 tribution and such distribution is a qualify21 ing distribution (within the meaning of

22 paragraph (1) or (2), without regard to

23 this paragraph) which is treated under

24 subsection (h) as a distribution out of cor25 pus (or would be so treated if such section
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1 501(c)(3) organization were a private foun2 dation which is not an operating founda3 tion), or

4 ‘‘(ii) in the case of a grant to a for5 eign organization that is not controlled (di6 rectly or indirectly) by the foundation or 1

7 or more disqualified persons (as defined in

8 section 4946) with respect to the founda9 tion, such organization makes expenditures

10 equal to the amount of such contribution

11 to accomplish 1 or more purposes de12 scribed in section 170(c)(2)(B) and the

13 grantor foundation exercises expenditure

14 responsibility with respect to the grant (as

15 defined in section 4945(h)), and

16 ‘‘(B) the private foundation making the

17 contribution obtains adequate records or other

18 sufficient evidence from such organization

19 showing that the requirements of subparagraph

20 (A) are satisfied.’’.

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

22 subsection (a) shall apply to taxable years beginning after

23 December 31, 1992.
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1 SEC. 3. CHANGING DUE DATE FOR FIRST QUARTER ESTI2 MATED TAX PAYMENTS BY PRIVATE FOUNDA3 TIONS.

4 (a) IN GENERAL.—Paragraph (3) of section 6655(g)

5 of the Internal Revenue Code of 1986 is amended by in6 serting after subparagraph (C) the following new subpara7 graph:

8 ‘‘(D) In the case of any private foundation,

9 subsection (c)(2) shall be applied by substitut10 ing ‘May 15’ for ‘April 15 ’. ’’.

11 (b) EFFECTIVE DATE.—The amendment made by

12 subsection (a) shall apply to taxable years beginning after

13 December 31, 1993.

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