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103D CONGRESS
1ST SESSION
H. R. 3033
Relating to the valuation of stock received by certain employees in connection
with the performance of services as employees.
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 9, 1993
Mr. HALL of Texas introduced the following bill; which was referred to the
Committee on Ways and Means
A BILL
Relating to the valuation of stock received by certain employ-
ees in connection with the performance of services as
employees.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. VALUATION OF CERTAIN STOCK.
(a) GENERAL RULE.—If—
(1) stock in a corporation was on March 24,
1981, transferred by such corporation to an em-
ployee of such corporation,
(2) such transfer was in connection with an ini-
tial public offering of stock in such corporation,
(3) the employee receiving such stock was sub-
ject to restrictions as to its transferability which
were imposed in connection with such public offer-
ing, and
(4) on April 15, 1982, the fair market value of
such stock was less than 50 percent of its fair mar-
ket value on March 24, 1981,
the amount includable in the gross income of the employee
under section 83 of the Internal Revenue Code of 1986
by reason of the receipt of such stock shall be determined
by using its fair market value on April 15, 1982 (or, if
earlier, the date on which the employee disposed of such
stock).
(b) STATUTE OF LIMITATIONS.—
(1) OVERPAYMENTS.—If refund or credit of any
overpayment of tax resulting from the application of
subsection (a) is prevented at any time before the
close of the 1-year period beginning on the date of
the enactment of this Act by the operation of any
law or rule of law (including res judicata), refund or
credit of such overpayment (to the extent attrib-
utable to the application of subsection (a)) shall,
nevertheless, be made or allowed if claim therefor is
filed before the close of such 1-year period.
(2) DEFICIENCIES.—If the assessment of any
deficiency of tax resulting from the application of
subsection (a) is prevented at any time before the
close of the 1-year period referred to in paragraph
(1) by the operation of any law or rule of law (in-
cluding res judicata), assessment of such deficiency
(to the extent attributable to the application of sub-
section (a)) may, nevertheless, be made within such
1-year period.
(c) OTHER SPECIAL RULES.—
(1) WAIVER
OF
PENALTIES
WHERE
STOCK
SOLD.—If any stock to which subsection (a) applies
was sold by the employee before the date of the en-
actment of this Act, no penalty shall be imposed
under subchapter A of chapter 68 of such Code by
reason of any underpayment of tax to the extent at-
tributable to the application of subsection (a).
(2) SECRETARY
TO
OPEN
CLOSING
AGREE-
MENTS.—Notwithstanding section 7121(b) of such
Code, the Secretary of the Treasury or his delegate
shall, at the request of any individual to whom sub-
section (a) applies, reopen any agreement referred to
in section 7121(a) of such Code entered into by such
individual for purposes of giving effect to this sec-
tion.
(d) EFFECTIVE DATE.—This section shall apply to
taxable years ending after March 24, 1981.
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