I 
112TH CONGRESS 
1ST SESSION H. R. 2669 
To restrict the use of offshore tax havens and abusive tax shelters to 
inappropriately avoid Federal taxation, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 27, 2011 
Mr. DOGGETT (for himself, Mr. LEVIN, Mr. LARSON of Connecticut, Ms. 
DELAURO, Mr. VAN HOLLEN, Mr. GEORGE MILLER of California, Mr. 
BLUMENAUER, Mr. MCDERMOTT, Mr. LEWIS of Georgia, Ms. BERKLEY, 
Mr. STARK, Mr. PASCRELL, Mr. WELCH, Ms. SLAUGHTER, Mr. DIN-
GELL, Mr. YARMUTH, Ms. LINDA T. SA´NCHEZ of California, Mr. CON-
YERS, Ms. SCHAKOWSKY, Mr. DAVIS of Illinois, Mr. MCGOVERN, Mr. 
FILNER, Mr. GENE GREEN of Texas, Mr. HINCHEY, Mr. GRIJALVA, Ms. 
HIRONO, Mr. JOHNSON of Georgia, Ms. LEE of California, Ms. MOORE, 
Mr. TIERNEY, Ms. KAPTUR, Ms. EDDIE BERNICE JOHNSON of Texas, 
Mr. DEFAZIO, Mr. TONKO, Mr. SHERMAN, Ms. JACKSON LEE of Texas, 
Mr. PETERS, Mr. RUSH, Mr. FARR, Mr. MORAN, Ms. BALDWIN, Ms. 
EDWARDS, Mr. MARKEY, Mr. HOLT, Mr. FATTAH, Mr. CLEAVER, Mr. 
CUMMINGS, Mr. AL GREEN of Texas, Mr. NADLER, Mr. PAYNE, Ms. 
BASS of California, Ms. SUTTON, Mr. ELLISON, and Mr. ANDREWS) in-
troduced the following bill; which was referred to the Committee on Ways 
and Means, and in addition to the Committee on Financial Services, for 
a period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the com-
mittee concerned 
A BILL 
To restrict the use of offshore tax havens and abusive tax 
shelters to inappropriately avoid Federal taxation, and 
for other purposes. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; ETC. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Stop Tax Haven Abuse Act’’. 
(b) AMENDMENT OF 1986 CODE.—Except as other-
wise expressly provided, whenever in this Act an amend-
ment or repeal is expressed in terms of an amendment 
to, or repeal of, a section or other provision, the reference 
shall be considered to be made to a section or other provi-
sion of the Internal Revenue Code of 1986. 
(c) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows: 
Sec. 1. Short title; etc. 
TITLE I—DETERRING THE USE OF TAX HAVENS FOR TAX 
EVASION 
Sec. 101. Authorizing special measures against foreign jurisdictions, financial 
institutions, and others that impede United States tax enforce-
ment. 
Sec. 102. Strengthening the Foreign Account Tax Compliance Act (FATCA). 
Sec. 103. Treatment of foreign corporations managed and controlled in the 
United States as domestic corporations. 
Sec. 104. Reporting United States beneficial owners of foreign owned financial 
accounts. 
Sec. 105. Credit default swap payments made from the United States to per-
sons offshore. 
Sec. 106. Tax on income of controlled foreign corporation deposited in financial 
account located in the United States. 
TITLE II—OTHER MEASURES TO COMBAT TAX HAVEN AND TAX 
SHELTER ABUSES 
Sec. 201. Country-by-country reporting. 
Sec. 202. Penalty for failing to disclose offshore holdings. 
Sec. 203. Deadline for anti-money laundering rule for hedge funds and private 
equity funds. 
Sec. 204. Anti-money laundering requirements for formation agents. 
Sec. 205. Strengthening John Doe summons proceedings. 
Sec. 206. Improving enforcement of foreign financial account reporting. 
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TITLE III—COMBATING TAX SHELTER PROMOTERS 
Sec. 301. Penalty for promoting abusive tax shelters. 
Sec. 302. Penalty for aiding and abetting the understatement of tax liability. 
Sec. 303. Prohibited fee arrangement. 
Sec. 304. Preventing tax shelter activities by financial institutions. 
Sec. 305. Information sharing for enforcement purposes. 
Sec. 306. Disclosure of information to Congress. 
Sec. 307. Tax opinion standards for tax practitioners. 
TITLE I—DETERRING THE USE 
OF TAX HAVENS FOR TAX 
EVASION 
SEC. 101. AUTHORIZING SPECIAL MEASURES AGAINST FOR-
EIGN JURISDICTIONS, FINANCIAL INSTITU-
TIONS, AND OTHERS THAT IMPEDE UNITED 
STATES TAX ENFORCEMENT. 
(a) IN GENERAL.—Section 5318A of title 31, United 
States Code, is amended— 
(1) by striking the section heading and insert-
ing the following new heading: 
‘‘§ 5318A. Special measures for jurisdictions, financial 
institutions, or international transactions 
that are of primary money laundering 
concern or impede United States tax en-
forcement’’; 
(2) in subsection (a), by striking all before 
paragraph (1) and inserting the following: 
‘‘(a) SPECIAL MEASURES TO COUNTER MONEY 
LAUNDERING AND EFFORTS TO IMPEDE UNITED STATES 
TAX ENFORCEMENT.—’’; 
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(b) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date of the enactment 
of this Act. 
SEC. 102. STRENGTHENING THE FOREIGN ACCOUNT TAX 
COMPLIANCE ACT (FATCA). 
(a) REPORTING ACTIVITIES WITH RESPECT TO PAS-
SIVE
FOREIGN
INVESTMENT
COMPANIES.—Section 
1298(f) is amended by inserting ‘‘, or who directly or indi-
rectly forms, transfers assets to, is a beneficiary of, has 
a beneficial interest in, or receives money or property or 
the use thereof from,’’ after ‘‘shareholder of’’. 
(b) WITHHOLDABLE PAYMENTS TO FOREIGN FINAN-
CIAL INSTITUTIONS.—Section 1471(d) is amended— 
(1) by inserting ‘‘or transaction’’ after ‘‘any de-
pository’’ in paragraph (2)(A), and 
(2) by striking ‘‘or any interest’’ and all that 
follows in paragraph (5)(C) and inserting ‘‘deriva-
tives, or any interest (including a futures or forward 
contract, swap, or option) in such securities, part-
nership interests, commodities, or derivatives.’’. 
(c) WITHHOLDABLE PAYMENTS TO OTHER FOREIGN 
FINANCIAL INSTITUTIONS.—Section 1472 is amended— 
(1) by inserting ‘‘as a result of any customer 
identification, anti-money laundering, anti-corrup-
tion, or similar obligation to identify account hold-
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ers,’’ after ‘‘reason to know,’’ in subsection (b)(2), 
and 
(2) by inserting ‘‘as posing a low risk of tax 
evasion’’ after ‘‘this subsection’’ in subsection 
(c)(1)(G). 
(d) DEFINITIONS.—Clauses (i) and (ii) of section 
1473(2)(A) are each amended by inserting ‘‘or as a bene-
ficial owner’’ after ‘‘indirectly’’. 
(e) SPECIAL RULES.—Section 1474(c) is amended— 
(1) by inserting ‘‘, except that information pro-
vided under sections 1471(c) or 1472(b) may be dis-
closed to any Federal law enforcement agency, upon 
request or upon the initiation of the Secretary, to in-
vestigate or address a possible violation of United 
States law’’ after ‘‘shall apply’’ in paragraph (1), 
and 
(2) by inserting ‘‘, or has had an agreement 
terminated under such section,’’ after ‘‘section 
1471(b)’’ in paragraph (2). 
(f) INFORMATION WITH RESPECT TO FOREIGN FI-
NANCIAL ASSETS.—Section 6038D(a) is amended by in-
serting ‘‘ownership or beneficial ownership’’ after ‘‘holds 
any’’. 
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(g) ESTABLISHING PRESUMPTIONS
FOR ENTITIES 
AND TRANSACTIONS INVOLVING NON-FATCA INSTITU-
TIONS.— 
(1) PRESUMPTIONS FOR TAX PURPOSES.— 
(A) IN GENERAL.—Chapter 76 is amended 
by inserting after section 7491 the following 
new subchapter: 
‘‘Subchapter F—Presumptions for Certain 
Legal Proceedings 
‘‘Sec. 7492. Presumptions pertaining to entities and transactions involving non- 
FATCA institutions. 
‘‘SEC. 7492. PRESUMPTIONS PERTAINING TO ENTITIES AND 
TRANSACTIONS INVOLVING NON-FATCA IN-
STITUTIONS. 
‘‘(a) CONTROL.—For purposes of any United States 
civil judicial or administrative proceeding to determine or 
collect tax, there shall be a rebuttable presumption that 
a United States person (other than an entity with shares 
regularly traded on an established securities market) who, 
directly or indirectly, formed, transferred assets to, was 
a beneficiary of, had a beneficial interest in, or received 
money or property or the use thereof from an entity, in-
cluding a trust, corporation, limited liability company, 
partnership, or foundation (other than an entity with 
shares regularly traded on an established securities mar-
ket), that holds an account, or in any other manner has 
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assets, in a non-FATCA institution, exercised control over 
such entity. The presumption of control created by this 
subsection shall not be applied to prevent the Secretary 
from determining or arguing the absence of control. 
‘‘(b) TRANSFERS OF INCOME.—For purposes of any 
United States civil judicial or administrative proceeding 
to determine or collect tax, there shall be a rebuttable pre-
sumption that any amount or thing of value received by 
a United States person (other than an entity with shares 
regularly traded on an established securities market) di-
rectly or indirectly from an account or from an entity 
(other than an entity with shares regularly traded on an 
established securities market) that holds an account, or 
in any other manner has assets, in a non-FATCA institu-
tion, constitutes income of such person taxable in the year 
of receipt; and any amount or thing of value paid or trans-
ferred by or on behalf of a United States person (other 
than an entity with shares regularly traded on an estab-
lished securities market) directly or indirectly to an ac-
count, or entity (other than an entity with shares regularly 
traded on an established securities market) that holds an 
account, or in any other manner has assets, in a non- 
FATCA institution, represents previously unreported in-
come of such person taxable in the year of the transfer. 
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‘‘(c) REBUTTING
THE PRESUMPTIONS.—The pre-
sumptions established in this section may be rebutted only 
by clear and convincing evidence, including detailed docu-
mentary, testimonial, and transactional evidence, estab-
lishing that— 
‘‘(1) in subsection (a), such taxpayer exercised 
no control, directly or indirectly, over account or en-
tity at the time in question, and 
‘‘(2) in subsection (b), such amounts or things 
of value did not represent income related to such 
United States person. 
Any court having jurisdiction of a civil proceeding in which 
control of such an offshore account or offshore entity or 
the income character of such receipts or amounts trans-
ferred is an issue shall prohibit the introduction by the 
taxpayer of any foreign based document that is not au-
thenticated in open court by a person with knowledge of 
such document, or any other evidence supplied by a person 
outside the jurisdiction of a United States court, unless 
such person appears before the court.’’. 
(B) The table of subchapters for chapter 
76 is amended by inserting after the item relat-
ing to subchapter E the following new item: 
‘‘SUBCHAPTER F—PRESUMPTIONS FOR CERTAIN LEGAL PROCEEDINGS’’. 
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