American employer with respect to such services per-
formed by such employee. 
‘‘(2) DOMESTICALLY CONTROLLED GROUP OF 
ENTITIES.—For purposes of this subsection— 
‘‘(A) IN
GENERAL.—The term ‘domesti-
cally controlled group of entities’ means a con-
trolled group of entities the common parent of 
which is a domestic corporation. 
‘‘(B) CONTROLLED GROUP OF ENTITIES.— 
The term ‘controlled group of entities’ means a 
controlled group of corporations as defined in 
section 1563(a)(1), except that— 
‘‘(i) ‘more than 50 percent’ shall be 
substituted for ‘at least 80 percent’ each 
place it appears therein, and 
‘‘(ii) the determination shall be made 
without regard to subsections (a)(4) and 
(b)(2) of section 1563. 
A partnership or any other entity (other than a 
corporation) shall be treated as a member of a 
controlled group of entities if such entity is con-
trolled 
(within 
the 
meaning 
of 
section 
954(d)(3)) by members of such group (includ-
ing any entity treated as a member of such 
group by reason of this sentence).
‘‘(3) LIABILITY OF COMMON PARENT.—In the 
case of a foreign person who is a member of any do-
mestically controlled group of entities, the common 
parent of such group shall be jointly and severally 
liable for any tax under this chapter for which such 
foreign person is liable by reason of this subsection, 
and for any penalty imposed on such person by this 
title with respect to any failure to pay such tax or 
to file any return or statement with respect to such 
tax or wages subject to such tax. No deduction shall 
be allowed under this title for any liability imposed 
by the preceding sentence. 
‘‘(4) COORDINATION.—Paragraph (1) shall not 
apply to any services which are covered by an agree-
ment under subsection (l). 
‘‘(5) CROSS REFERENCE.—For relief from taxes 
in cases covered by certain international agreements, 
see sections 3101(c) and 3111(c).’’. 
(b) SOCIAL SECURITY BENEFITS.—Subsection (e) of 
section 210 of the Social Security Act (42 U.S.C. 410(e)) 
is amended— 
(1) by striking ‘‘(e) The term’’ and inserting 
‘‘(e)(1) The term’’, 
(2) by redesignating clauses (1) through (6) as 
clauses (A) through (F), respectively, and
(3) by adding at the end the following new 
paragraph: 
‘‘(2)(A) If any employee of a foreign person is per-
forming services in connection with a contract between the 
United States Government (or any instrumentality there-
of) and any member of any domestically controlled group 
of entities which includes such foreign person, such foreign 
person shall be treated as an American employer with re-
spect to such services performed by such employee. 
‘‘(B) For purposes of this paragraph— 
‘‘(i) The term ‘domestically controlled group of 
entities’ means a controlled group of entities the 
common parent of which is a domestic corporation. 
‘‘(ii) The term ‘controlled group of entities’ 
means a controlled group of corporations as defined 
in section 1563(a)(1) of the Internal Revenue Code 
of 1986, except that— 
‘‘(I) ‘more than 50 percent’ shall be sub-
stituted for ‘at least 80 percent’ each place it 
appears therein, and 
‘‘(II) the determination shall be made 
without regard to subsections (a)(4) and (b)(2) 
of section 1563 of such Code. 
A partnership or any other entity (other than a cor-
poration) shall be treated as a member of a con-
trolled group of entities if such entity is controlled 
(within the meaning of section 954(d)(3) of such 
Code) by members of such group (including any en-
tity treated as a member of such group by reason of 
this sentence).’’. 
(c) EFFECTIVE DATE.—The amendment made by 
this section shall apply to services performed after the 
date of the enactment of this Act. 
SEC. 19. TIME FOR PAYMENT OF CORPORATE ESTIMATED 
TAX. 
The percentage under subparagraph (C) of section 
401(1) of the Tax Increase Prevention and Reconciliation 
Act of 2005 in effect on the date of the enactment of this 
Act is increased by 0.25 percentage points. 
SEC. 20 GAO STUDY ON HEALTH SAVINGS ACCOUNTS. 
(a) IN GENERAL.—The Comptroller General of the 
United States shall conduct a study of the use of distribu-
tions from health savings accounts. 
(b) SUBMISSION OF REPORT.—Not later than 1 year 
after the date of the enactment of this Act, the Comp-
troller General shall submit a report on the findings of 
the study conducted under subsection (a) and shall include 
therein recommendations (if any) relating to such find-
ings. The report shall be submitted to the Committee on
Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate. 
Passed the House of Representatives April 15, 2008. 
Attest: 
Clerk.