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PART X—MODIFICATIONS OF RULES RELATING TO SUMMONSES
Sec. 13346. Enrolled agents included as third-party recordkeepers.
Sec. 13347. Safeguards relating to designated summonses.
Sec. 13348. Annual report to Congress concerning designated summonses.
PART XI—RELIEF FROM RETROACTIVE APPLICATION OF TREASURY
DEPARTMENT REGULATIONS
Sec. 13351. Relief from retroactive application of Treasury Department regula-
tions.
PART XII—MISCELLANEOUS PROVISIONS
Sec. 13356. Report on pilot program for appeal of enforcement actions.
Sec. 13357. Phone number of person providing payee Statements required to
be shown on such Statement.
Sec. 13358. Required notice of certain payments.
Sec. 13359. Unauthorized enticement of information disclosure.
Sec. 13360. Annual reminders to taxpayers with outstanding delinquent ac-
counts.
Sec. 13361. 5-year extension of authority for undercover operations.
Sec. 13362. Disclosure of form 8300 information on cash transactions.
Sec. 13363. Disclosure of returns and return information to designee of tax-
payer.
Sec. 13364. Study of netting of interest on overpayments and liabilities.
Sec. 13365. Credit for expenses of certain TCMP audits.
Sec. 13366. Expenses of detection of underpayments and fraud, etc.
Subtitle D—Additional Technical Corrections
Sec. 13401. Reporting of real estate transactions.
Sec. 13402. Clarification of denial of deduction for stock redemption expenses.
Sec. 13403. Clarification of depreciation class for certain energy property.
Sec. 13404. Clerical amendment to section 404.
Sec. 13405. Treatment of certain veterans’ reemployment rights.
Subtitle E—Tax Information Sharing
Sec. 13501. Disclosure of return information for administration of certain vet-
erans programs.
Subtitle F—Revenue Increases
PART I—PROVISIONS RELATING TO BUSINESSES
Sec. 13601. Tax treatment of certain extraordinary dividends.
Sec. 13602. Registration of confidential corporate tax shelters.
Sec. 13603. Denial of deduction for interest on loans with respect to company-
owned insurance.
Sec. 13604. Termination of suspense accounts for family corporations required
to use accrual method of accounting.
Sec. 13605. Termination of Puerto Rico and possession tax credit.
Sec. 13606. Depreciation under income forecast method.
Sec. 13607. Transfers of excess pension assets.
PART II—LEGAL REFORMS
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Sec. 13611. Repeal of exclusion for punitive damages and for damages not at-
tributable to physical injuries or sickness.
Sec. 13612. Reporting of certain payments made to attorneys.
PART III—TREATMENT OF INDIVIDUALS WHO LOSE UNITED STATES
CITIZENSHIP
Sec. 13616. Revision of income, estate, and gift taxes on individuals who lose
United States citizenship.
Sec. 13617. Information on individuals losing United States citizenship.
Sec. 13618. Report on tax compliance by United States citizens and residents
living abroad.
PART IV—REFORMS RELATING TO ENERGY PROVISIONS
Sec. 13621. Termination of credit for electricity produced from certain renew-
able resources.
Sec. 13622. Exclusion for energy conservation subsidies limited to subsidies
with respect to dwelling units.
PART V—REFORMS RELATING TO NONRECOGNITION PROVISIONS
Sec. 13626. Basis adjustment to property held by corporation where stock in
corporation is replacement property under involuntary conver-
sion rules.
Sec. 13627. Expansion of requirement that involuntarily converted property be
replaced with property acquired from an unrelated person.
Sec. 13628. No rollover or exclusion of gain on sale of principal residence which
is attributable to depreciation deductions.
Sec. 13629. Nonrecognition of gain on sale of principal residence by noncitizens
limited to new residences located in the United States.
PART VI—REFORMS RELATING TO GAMING ACTIVITIES
Sec. 13631. Treatment of Indian gaming activities under unrelated business in-
come tax.
Sec. 13632. Repeal of targeted exemption from tax on unrelated trade or busi-
ness income from gambling in certain States.
Sec. 13633. Extension of withholding to certain gambling winnings.
PART VII—OTHER REFORMS
Sec. 13636. Sunset of low-income housing credit.
Sec. 13637. Repeal of credit for contributions to community development
corporations.
Sec. 13638. Repeal of diesel fuel tax rebate to purchasers of diesel-powered
automobiles and light trucks.
Sec. 13639. Application of failure-to-pay penalty to substitute returns.
Sec. 13640. Repeal of special rule for rental use of vacation homes, etc., for
less than 15 days.
Sec. 13641. Election to cease status as qualified scholarship funding
corporation.
Sec. 13642. Certain amounts derived from foreign corporations treated as
unrelated business taxable income.
PART VIII—EXCISE TAX ON AMOUNTS OF PRIVATE EXCESS BENEFITS
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Sec. 13646. Excise taxes for failure by certain charitable organizations to meet
certain qualification requirements.
Sec. 13647. Reporting of certain excise taxes and other information.
Sec. 13648. Exempt organizations required to provide copy of return.
Sec. 13649. Certain organizations required to disclose nonexempt status.
Sec. 13650. Increase in penalties on exempt organizations for failure to file
complete and timely annual returns.
Sec. 13651. Studies.
Subtitle G—Reform of the Earned Income Tax Credit
Sec. 13701. Repeal of earned income credit for individuals without qualifying
children; modifications to credit phaseout.
Sec. 13702. Modification of adjusted gross income used for phaseout.
Sec. 13703. Earned income tax credit denied to individuals not authorized to
be employed in the United States.
Subtitle H—Increase in Public Debt Limit
Sec. 13801. Increase in public debt limit.
Subtitle I—Coal Industry Retiree Health Equity
Sec. 13901. Repeal of reachback provisions of coal industry health benefit
system.
Subtitle A—Extension of Expiring
Provisions, Etc.
PART I—EXTENSIONS THROUGH DECEMBER 31,
1997
SEC. 13101. WORK OPPORTUNITY TAX CREDIT.
(a) AMOUNT OF CREDIT.—Subsection (a) of section
51 is amended by striking ‘‘40 percent’’ and inserting ‘‘35
percent’’.
(b) MEMBERS OF TARGETED GROUPS.—Subsection
(d) of section 51 is amended to read as follows:
‘‘(d) MEMBERS OF TARGETED GROUPS.—For pur-
poses of this subpart—
‘‘(1) IN GENERAL.—An individual is a member
of a targeted group if such individual is—
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‘‘(A) a qualified AFDC recipient,
‘‘(B) a qualified ex-felon,
‘‘(C) a high-risk youth,
‘‘(D) a vocational rehabilitation referral, or
‘‘(E) a qualified summer youth employee.
‘‘(2) QUALIFIED AFDC RECIPIENT.—
‘‘(A) IN
GENERAL.—The term ‘qualified
AFDC recipient’ means any individual who is
certified by the designated local agency as being
a member of a family receiving assistance under
an AFDC program for at least a 9-month pe-
riod ending during the 9-month period ending
on the hiring date.
‘‘(B) AFDC PROGRAM.—For purposes of
this paragraph, the term ‘AFDC program’
means any program providing aid under a State
plan approved under part A of title IV of the
Social Security Act (relating to aid to families
with dependent children) and any successor of
such program.
‘‘(C) SPECIAL RULES FOR VETERANS.—In
the case of a veteran, subparagraph (A) shall be
applied by substituting ‘12-month’ for ‘9-
month’ the second place it appears.
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‘‘(D) VETERAN.—For purposes of sub-
paragraph (C), the term ‘veteran’ means any
individual who is certified by the designated
local agency as—
‘‘(i)(I) having served on active duty
(other than active duty for training) in the
Armed Forces of the United States for a
period of more than 180 days, or
‘‘(II) having been discharged or re-
leased from active duty in the Armed
Forces of the United States for a service-
connected disability, and
‘‘(ii) not having any day during the
60-day period ending on the hiring date
which was a day of extended active duty in
the Armed Forces of the United States.
For purposes of clause (ii), the term ‘extended
active duty’ means a period of more than 90
days during which the individual was on active
duty (other than active duty for training).
‘‘(3) QUALIFIED EX-FELON.—The term ‘quali-
fied ex-felon’ means any individual who is certified
by the designated local agency—
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‘‘(4) FAMILY MEMBERS.—The members of an
individual’s family shall be determined under section
4946(d); except that such members also shall in-
clude the brothers and sisters (whether by the whole
or half blood) of the individual and their spouses.
‘‘(5) TAXABLE PERIOD.—The term ‘taxable pe-
riod’ means, with respect to any excess benefit
transaction, the period beginning with the date on
which the transaction occurs and ending on the ear-
liest of—
‘‘(A) the date of mailing a notice of defi-
ciency under section 6212 with respect to the
tax imposed by subsection (a)(1), or
‘‘(B) the date on which the tax imposed by
subsection (a)(1) is assessed.
‘‘(6) CORRECTION.—The terms ‘correction’ and
‘correct’ mean, with respect to any excess benefit
transaction, undoing the excess benefit to the extent
possible, and where fully undoing the excess benefit
is not possible, such additional corrective action as
is prescribed by the Secretary by regulations.
‘‘(g) TREATMENT OF PREVIOUSLY EXEMPT ORGANI-
ZATIONS.—
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the status of any organization as an applicable