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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4841 Introduced in House (IH)]

  2d Session
                                H. R. 4841

  To amend the Internal Revenue Code of 1986 to simplify certain tax 
                         rules for individuals.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             July 15, 2004

  Mr. Burns 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 simplify certain tax 
                         rules for individuals.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Tax Simplification for Americans Act 
of 2004''.

SEC. 2. BIRTHDAY RULE FOR DETERMINING ATTAINMENT OF AGE.

    (a) In General.--Section 7701 of the Internal Revenue Code of 1986 
is amended by redesignating subsection (n) as subsection (o) and by 
inserting after subsection (m) the following new subsection:
    ``(n) Attainment of Age.--
            ``(1) In general.--For purposes of this title (other than 
        the sections referred to in paragraph (2)), an individual shall 
        be treated as attaining an age on the date of the anniversary 
        of such individual's birth which corresponds to such age.
            ``(2) Coordination with social security act.--For purposes 
        of sections 220(f)(4)(C), 223(f)(4)(C), and 415(b)(8), an 
        individual shall be treated as attaining an age on the day 
        which such individual is treated as attaining such age under 
        the relevant provisions of the Social Security Act.''.
    (b) Effective Date.--The amendments made by this section shall 
apply for purposes of determining an individual's age on days on or 
after January 1, 2005.
    (c) Transition Rule.--The Secretary of the Treasury may provide for 
purposes of any provision of the Internal Revenue Code of 1986 that an 
individual be treated as attaining an age on the day before the date of 
the anniversary of such individual's birth which corresponds to such 
age if the Secretary determines that such individual took any action 
during the period beginning on January 1, 2003, and ending on the date 
of the enactment of this Act in reasonable reliance on such treatment.

SEC. 3. HEAD OF HOUSEHOLD FILING STATUS CHANGED TO SINGLE HEAD OF 
              HOUSEHOLD.

    (a) In General.--The following provisions of the Internal Revenue 
Code of 1986 are each amended by striking ``head of a household'' each 
place it appears and inserting ``single head of household'':
            (1) Subsection (b) of section 1.
            (2) Paragraphs (1) and (3) of section 2(b).
            (3) The table in section 25B(b).
            (4) Clause (iii) of section 151(c)(6)(B).
            (5) Clauses (ii) and (iii) of section 151(d)(3)(C).
            (6) Subparagraph (A) of section 6012(a)(1).
    (b) Other Conforming Amendments.--
            (1) Subparagraph (B) of section 63(c)(2) of such Code is 
        amended by striking ``head of household'' and inserting 
        ``single head of household''.
            (2) Section 1 of such Code is amended--
                    (A) in the heading for subsection (b) by inserting 
                ``Single'' before ``Heads'',
                    (B) in subsection (c) by inserting ``single'' 
                before ``head'', and
                    (C) in the heading of subsection (c) by inserting 
                ``single'' before ``heads''.
            (3) The heading for section 2(b) of such Code is amended to 
        read as follows: ``Definition of Single Head of Household''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2004.

SEC. 4. EXPANDED AVAILABILITY OF 1040EZ AND 1040A.

    (a) In General.--Chapter 77 of the Internal Revenue Code of 1986 
(relating to miscellaneous provisions) is amended by adding at the end 
the following new section:

``SEC. 7529. DOLLAR THRESHOLD FOR THE USE OF FORMS 1040EZ AND 1040A.

    ``(a) In General.--An individual shall not be ineligible to use 
Form 1040EZ and Form 1040A for filing individual income tax returns on 
the basis of--
            ``(1) the amount of the taxpayer's taxable interest income, 
        or
            ``(2) the amount of the taxpayer's taxable income,
so long as the taxpayer's taxable income does not exceed $100,000.
    ``(b) Inflation Adjustment.--In the case of any taxable year 
beginning in a calendar year after 2004, the $100,000 dollar amount in 
subsection (a) shall be increased by an amount equal to--
            ``(1) such dollar amount, multiplied by
            ``(2) the cost-of-living adjustment determined under 
        section 1(f)(3) for such calendar year by substituting 
        `calendar year 2003' for `calendar year 1992' in subparagraph 
        (B) thereof.
If any amount as adjusted under the preceding sentence is not a 
multiple of $10,000, such amount shall be rounded to the nearest 
multiple of $10,000.''.
    (b) Clerical Amendment.--The table of sections for chapter 77 of 
such Code is amended by adding at the end the following new item:

                              ``Sec. 7529. Dollar threshold for the use 
                                        of forms 1040EZ and 1040A.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2003.

SEC. 5. SIMPLIFICATION THROUGH ELIMINATION OF INOPERATIVE PROVISIONS.

    (a) In General.--
            (1) Adjustments in tax tables so that inflation will not 
        result in tax increases.--Paragraph (7) of section 1(f) of the 
        Internal Revenue Code of 1986 is amended to read as follows:
            ``(7) Special rule for certain brackets.--In prescribing 
        tables under paragraph (1) which apply to taxable years 
        beginning in a calendar year after 1994, the cost-of-living 
        adjustment used in making adjustments to the dollar amounts at 
        which the 36 percent rate bracket begins or at which the 39.6 
        percent rate bracket begins shall be determined under paragraph 
        (3) by substituting `1993' for `1992'.''.
            (2) Earned income credit.--Paragraph (1) of section 32(b) 
        of such Code is amended--
                    (A) by striking subparagraphs (B) and (C), and
                    (B) in subparagraph (A) by striking ``(A) In 
                general.--In the case of taxable years beginning after 
                1995'' and moving the table 2 ems to the left.
            (3) Annuities; certain proceeds of endowment and life 
        insurance contracts.--Section 72 of such Code is amended--
                    (A) in subsection (c)(4) by striking ``; except 
                that if such date was before January 1, 1954, then the 
                annuity starting date is January 1, 1954'', and
                    (B) in subsection (g)(3) by striking ``January 1, 
                1954, or'' and ``, whichever is later''.
            (4) Accident and health plans.--Section 105(f) of such Code 
        is amended by striking ``or (d)''.
            (5) Flexible spending arrangements.--Section 106(c)(1) of 
        such Code is amended by striking ``Effective on and after 
        January 1, 1997, gross'' and inserting ``Gross''.
            (6) Certain combat zone compensation of members of the 
        armed forces.--Subsection (c) of section 112 of such Code is 
        amended--
                    (A) by striking ``(after June 24, 1950)'' in 
                paragraph (2), and
                    (B) striking ``such zone;'' and all that follows in 
                paragraph (3) and inserting ``such zone.''.
            (7) Principal residence.--Section 121(b)(3) of such Code is 
        amended--
                    (A) by striking subparagraph (B), and
                    (B) in subparagraph (A) by striking ``(A) In 
                general.--'' and moving the text 2 ems to the left.
            (8) Certain reduced uniformed services retirement pay.--
        Section 122(b)(1) of such Code is amended by striking ``after 
        December 31, 1965,''.
            (9) Mortgage revenue bonds for residences in federal 
        disaster areas.--Section 143(k) of such Code is amended by 
        striking paragraph (11).
            (10) State legislators' travel expenses away from home.--
        Paragraph (4) of section 162(h) of such Code is amended by 
        striking ``For taxable years beginning after December 31, 1980, 
        this'' and inserting ``This''.
            (11) Health insurance costs of self-employed individuals.--
        Paragraph (1) of section 162(l) of such Code is amended to read 
        as follows:
            ``(1) Allowance of deduction.--In the case of an individual 
        who is an employee within the meaning of section 401(c)(1), 
        there shall be allowed as a deduction under this section an 
        amount equal to 100 percent of the amount paid during the 
        taxable year for insurance which constitutes medical care for 
        the taxpayer and the taxpayer's spouse and dependents.''.
            (12) Interest.--
                    (A) Section 163 of such Code is amended--
                            (i) by striking paragraph (6) of subsection 
                        (d), and
                            (ii) by striking paragraph (5) of 
                        subsection (h).
                    (B) Section 56(b)(1)(C) of such Code is amended by 
                striking clause (ii) and by redesignating clauses 
                (iii), (iv), and (v) as clauses (ii), (iii), and (iv), 
                respectively.
            (13) Amounts received by surviving annuitant under joint 
        and survivor annuity contract.--Subparagraph (A) of section 
        691(d)(1) of such Code is amended by striking ``after December 
        31, 1953, and''.
            (14) Income taxes of members of armed forces on death.--
        Section 692(a)(1) of such Code is amended by striking ``after 
        June 24, 1950''.
            (15) Tax on nonresident alien individuals.--Subparagraph 
        (B) of section 871(a)(1) of such Code is amended to read as 
        follows:
                    ``(B) gains described in subsection (b) or (c) of 
                section 631,''.
            (16) Old-age, survivors, and disability insurance.--
        Subsection (a) of section 1401 of such Code is amended by 
        striking ``the following percent'' and all that follows and 
        inserting ``12.4 percent of the amount of the self-employment 
        income for such taxable year.''.
            (17) Hospital insurance.--Subsection (b) of section 1401 of 
        such Code is amended by striking ``the following percent'' and 
        all that follows and inserting ``2.9 percent of the amount of 
        the self-employment income for such taxable year.''.
            (18) Ministers, members of religious orders, and christian 
        science practitioners.--Paragraph (3) of section 1402(e) of 
        such Code is amended by striking ``whichever of the following 
        dates is later: (A)'' and by striking ``; or (B)'' and all that 
        follows and inserting a period.
            (19) Withholding of tax on nonresident aliens.--The first 
        sentence of subsection (b) of section 1441 of such Code and the 
        first sentence of paragraph (5) of section 1441(c) of such Code 
        are each amended by striking ``gains subject to tax'' and all 
        that follows through ``October 4, 1966'' and inserting ``and 
        gains subject to tax under section 871(a)(1)(D)''.
            (20) Retirement.--Section 7447(i)(3)(B)(ii) of such Code is 
        amended by striking ``at 4 percent per annum to December 31, 
        1947, and at 3 percent per annum thereafter'', and inserting 
        ``at 3 percent per annum''.
            (21) Annuities to surviving spouses and dependent children 
        of judges.--
                    (A) Paragraph (2) of section 7448(a) of such Code 
                is amended by striking ``or under section 1106 of the 
                Internal Revenue Code of 1939'' and by striking ``or 
                pursuant to section 1106(d) of the Internal Revenue 
                Code of 1939''.
                    (B) Subsection (g) of section 7448 of such Code is 
                amended by striking ``or other than pursuant to section 
                1106 of the Internal Revenue Code of 1939''.
                    (C) Subsections (g), (j)(1), and (j)(2) of section 
                7448 of such Code are each amended by striking ``at 4 
                percent per annum to December 31, 1947, and at 3 
                percent per annum thereafter'' and inserting ``at 3 
                percent per annum''.
    (b) Effective Date.--
            (1) General rule.--Except as otherwise provided in 
        paragraph (2), the amendments made by subsection (a) shall take 
        effect on the date of enactment of this Act.
            (2) Savings provision.--If--
                    (A) any provision amended or repealed by subsection 
                (a) applied to--
                            (i) any transaction occurring before the 
                        date of the enactment of this Act,
                            (ii) any property acquired before such date 
                        of enactment, or
                            (iii) any item of income, loss, deduction, 
                        or credit taken into account before such date 
                        of enactment, and
                    (B) the treatment of such transaction, property, or 
                item under such provision would (without regard to the 
                amendments made by subsection (a)) affect the liability 
                for tax for periods ending after such date of 
                enactment,
        nothing in the amendments made by subsection (a) shall be 
        construed to affect the treatment of such transaction, 
        property, or item for purposes of determining liability for tax 
        for periods ending after such date of enactment.
                                 <all>
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