I 

114TH CONGRESS 

2D SESSION H. R. 5550 

To amend the Internal Revenue Code of 1986 to impose an excise tax 

on United States dollar clearing done for the benefit of Iran or Iranian 

persons. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 21, 2016 

Mr. ROSKAM (for himself, Mr. BOUSTANY, Mr. TIBERI, Mr. BUCHANAN, Mr. 

SAM JOHNSON of Texas, Mr. REICHERT, Mr. YOUNG of Indiana, Mr. 

NUNES, and Mrs. BLACK) 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 impose 

an excise tax on United States dollar clearing done for 

the benefit of Iran or Iranian persons. 

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 ‘‘No Dollars for Aya5 tollahs Act’’. 


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1 SEC. 2. EXCISE TAX ON DOLLAR CLEARING TRANSACTIONS 

2 WITH RESPECT TO IRAN. 

3 (a) IN GENERAL.—Subtitle D of the Internal Rev4 enue Code of 1986 is amended by adding at the end the 

5 following new chapter: 

6 ‘‘CHAPTER 50A—CLEARING 

7 TRANSACTIONS WITH RESPECT TO IRAN 

‘‘Sec. 5000D. Imposition of tax on dollar clearing transactions with respect to 

Iran. 

8 ‘‘SEC. 5000D. IMPOSITION OF TAX ON DOLLAR CLEARING 

9 TRANSACTIONS WITH RESPECT TO IRAN. 

10 ‘‘(a) IMPOSITION OF TAX.—There is hereby imposed 

11 on any United States person who clears or transfers 

12 United States dollars for the direct or indirect benefit of 

13 the Government of Iran or any Iranian person a tax equal 

14 to 100 percent of the dollar amount cleared or transferred. 

15 ‘‘(b) TRANSACTION BY CERTAIN RELATED ENTI16 TIES.—If any United States dollars are so cleared or 

17 transferred by— 

18 ‘‘(1) a foreign member of a United States per19 son’s worldwide affiliated group, or 

20 ‘‘(2) a foreign person who— 

21 ‘‘(A) is not a member of a United States 

22 person’s worldwide affiliated group, but 


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1 ‘‘(B) has a correspondent account or pay2 able-through account for or with such a mem3 ber or a United States person, 

4 such dollars shall be treated for purposes of subsection 

5 (a) as being cleared or transferred by the United States 

6 person. The preceding sentence shall apply with respect 

7 to a foreign person described in paragraph (2) only if the 

8 member or United States person, as the case may be, for 

9 or with whom the account is maintained knew or had rea10 son to know such dollars were being so cleared or trans11 ferred. 

12 ‘‘(c) THRESHOLD LIMITATION.— 

13 ‘‘(1) IN GENERAL.—The tax imposed by sub14 section (a) shall only apply with respect to a United 

15 States person for a calendar year to the extent the 

16 dollar amounts so cleared or transferred during the 

17 calendar year by such United States person (includ18 ing any such amounts treated under subsection (b) 

19 as cleared or transferred by such person) exceed 

20 $1,000,000. 

21 ‘‘(2) MEMBERS OF GROUP.—For purposes of 

22 paragraph (1), amounts cleared or transferred by a 

23 non-foreign member of such person’s worldwide af24 filiated group shall be treated as cleared or trans25 ferred by such person. 


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1 ‘‘(d) DEFINITIONS.—For purposes of this section— 

2 ‘‘(1) WORLDWIDE AFFILIATED GROUP.—The 

3 term ‘worldwide affiliated group’ means an affiliated 

4 group as defined in section 1504(a), determined— 

5 ‘‘(A) by substituting ‘more than 50 per6 cent’ for ‘at least 80 percent’ each place it ap7 pears, and 

8 ‘‘(B) without regard to section 1504(b). 

9 A partnership or any other entity (other than a cor10 poration) shall be treated as a member of a world11 wide affiliated group if such entity is controlled 

12 (within the meaning of section 954(d)(3)) by mem13 bers of such group (including any entity treated as 

14 a member of such group by reason of this sentence). 

15 ‘‘(2) CORRESPONDENT ACCOUNT.—The term 

16 ‘correspondent account’ means an account estab17 lished to receive deposits from, or make payments on 

18 behalf of, a financial institution or handle other fi19 nancial transactions related to such institution. 

20 ‘‘(3) PAYABLE-THROUGH ACCOUNT.—The term 

21 ‘payable-through account’ means an account, includ22 ing a transaction account (as defined in section 

23 19(b)(1)(C) of the Federal Reserve Act), opened at 

24 a depository institution by another financial institu25 tion by means of which the financial institution perVerDate Sep 11 2014 01:50 Jun 23, 2016 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H5550.IH H5550

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1 mits its customers to engage, either directly or 

2 through a subaccount, in banking activities usually 

3 in connection with the business of banking. 

4 ‘‘(4) ACCOUNT.—The term ‘account’ means a 

5 formal banking or business relationship established 

6 to provide regular services, dealings, and other fi7 nancial transactions and includes a demand deposit, 

8 savings deposit, or other transaction or asset ac9 count and a credit account or other extension of 

10 credit. 

11 ‘‘(5) FINANCIAL INSTITUTION.—The term ‘fi12 nancial institution’ shall have the meaning given 

13 such term under section 5312(a)(2) of title 31, 

14 United States Code. 

15 ‘‘(6) IRANIAN PERSON.—The term ‘Iranian per16 son’ means— 

17 ‘‘(A) any person in Iran, 

18 ‘‘(B) any citizen or resident of Iran, 

19 ‘‘(C) any foreign partnership or foreign 

20 corporation which is organized or operated in 

21 Iran (or is a member of such a person’s world22 wide affiliated group), 

23 ‘‘(D) any foreign trust if— 


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1 ‘‘(i) a court within Iran is able to ex2 ercise primary supervision over the admin3 istration of the trust, and 

4 ‘‘(ii) one or more persons described in 

5 subparagraph (A) or (B) have the author6 ity to control all substantial decisions of 

7 the trust, and 

8 ‘‘(E) any foreign estate a beneficiary of 

9 which is a person described in subparagraph 

10 (A). 

11 ‘‘(e) SPECIAL RULES.— 

12 ‘‘(1) CERTAIN LICENSED TRANSACTIONS.—This 

13 section shall not apply in the case of a transaction 

14 authorized under part 535, 560, or 561 of title 31, 

15 Code of Federal Regulations, as in effect on June 1, 

16 2016. 

17 ‘‘(2) HUMANITARIAN ASSISTANCE.—This sec18 tion shall not apply in the case of any transaction 

19 permitted— 

20 ‘‘(A) under section 413 of the Iran Threat 

21 Reduction and Syria Human Rights Act of 

22 2012, or 

23 ‘‘(B) under a license issued under the 

24 International Emergency Economic Powers Act 

25 (50 U.S.C. 1701 et seq.) if— 


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1 ‘‘(i) such transaction relates solely 

2 to— 

3 ‘‘(I) the provision of agricultural 

4 commodities, food, medicine, or med5 ical devices to Iran, or 

6 ‘‘(II) the provision of humani7 tarian assistance to the people of 

8 Iran, and 

9 ‘‘(ii) the President submits a copy of 

10 the license to the Committee on Ways and 

11 Means of the House of Representatives 

12 and the Committee on Finance of the Sen13 ate, the Committee on Financial Services 

14 of the House of Representatives and the 

15 Committee on Banking, Housing, and 

16 Urban Affairs of the Senate, and the Com17 mittee on Foreign Affairs of the House of 

18 Representatives and the Committee on 

19 Foreign Relations of the Senate. 

20 ‘‘(3) INTELLIGENCE ACTIVITIES.—This section 

21 shall not apply in the case of intelligence activities 

22 subject to reporting requirements under title V of 

23 the National Security Act of 1947 (50 U.S.C. 3091 

24 et seq.). 


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1 ‘‘(4) JOINT AND SEVERAL LIABILITY.—If more 

2 than 1 person is liable under subsection (a) or (b) 

3 with respect to a dollar clearing or transferring 

4 transaction, all such persons shall be jointly and sev5 erally liable under such subsection with respect to 

6 such transaction.’’. 

7 (b) CLERICAL AMENDMENT.—The table of chapters 

8 for subtitle D of such Code is amended by adding at the 

9 end the following new item: 

‘‘CHAPTER 50A. CLEARING TRANSACTIONS WITH RESPECT TO IRAN’’. 

10 (c) EFFECTIVE DATE.—The amendments made by 

11 this section shall apply to transactions after June 21, 

12 2016. 

Æ 


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