I
103D CONGRESS
1ST SESSION
H. R. 404
To repeal the provisions in the Internal Revenue Code of 1986 relating
to the inclusion of Social Security and certain railroad retirement benefits
in gross income to the extent such provisions do not apply to nonresident
aliens.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 5, 1993
Mr. SOLOMON introduced the following bill; which was referred to the
Committee on Ways and Means
A BILL
To repeal the provisions in the Internal Revenue Code of
1986 relating to the inclusion of Social Security and
certain railroad retirement benefits in gross income to
the extent such provisions do not apply to nonresident
aliens.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. REPEAL OF PROVISION WHICH INCLUDES ONE-
HALF OF SOCIAL SECURITY AND RAILROAD
RETIREMENT BENEFITS IN GROSS INCOME.
(a) REPEAL OF PROVISION INCLUDING BENEFITS IN
GROSS INCOME.—Section 86 of the Internal Revenue
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Code of 1986 (relating to inclusion of social security and
tier 1 railroad retirement benefits in gross income) is here-
by repealed.
(b) REPEAL OF RETURN REQUIREMENT.—Section
6050F of such Code (relating to returns relating to Social
Security benefits) is hereby repealed.
(c) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Paragraph (3) of section 72(r) of such Code
is amended to read as follows:
‘‘(3) TIER
RAILROAD
RETIREMENT
BENE-
FIT.—For purposes of paragraph (1), the term ‘tier
1 railroad retirement benefit’ means a monthly bene-
fit under section 3(a), 3(f)(3), 4(a), or 4(f) of the
Railroad Retirement Act of 1974.’’
(2) Paragraph (1) of section 6050G(a) of such
Code is amended by striking out ‘‘86(d)(4)’’ and in-
serting in lieu thereof ‘‘72(r)(3)’’.
(3) The table of sections for part II of sub-
chapter B of chapter 1 of such Code is amended by
striking out the item relating to section 86.
(4) The table of sections for subpart B of part
III of subchapter A of chapter 61 of such Code is
amended by striking out the item relating to section
6050F.
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(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to benefits received after December
31, 1989, in taxable years beginning after such date.
SEC. 2. TAXATION OF ONE-HALF OF SOCIAL SECURITY BEN-
EFITS PAID TO NONRESIDENT ALIENS CON-
TINUED.
(a) IN GENERAL.—Section 871 of the Internal Reve-
nue Code of 1986 (relating to tax on nonresident alien
individuals) is amended by redesignating subsection (j) as
subsection (k) and by inserting after subsection (i) the fol-
lowing new subsection:
‘‘(j) SOCIAL SECURITY BENEFIT DEFINED.—
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘social security benefit’ means any
amount received by the taxpayer by reason of enti-
tlement to—
‘‘(A) a monthly benefit under title II of the
Social Security Act, or
‘‘(B) a tier 1 railroad retirement benefit.
For purposes of the preceding sentence, the amount
received by any taxpayer shall be determined as if
the Social Security Act did not contain section
203(i) thereof.
‘‘(2) ADJUSTMENT FOR REPAYMENTS DURING
YEAR.—For purposes of this section, the amount of
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Social Security benefits received during any taxable
year shall be reduced by any repayment made by the
taxpayer during the taxable year of a Social Security
benefit previously received by the taxpayer (whether
or not such benefit was received during the taxable
year).
‘‘(3) WORKMEN’S
COMPENSATION
BENEFITS
SUBSTITUTED FOR SOCIAL SECURITY BENEFITS.—
For purposes of this section, if, by reason of section
224 of the Social Security Act (or by reason of sec-
tion 3(a)(1) of the Railroad Retirement Act of
1974), any Social Security benefit is reduced by rea-
son of the receipt of a benefit under a workman’s
compensation act, the term ‘Social Security benefit’
includes that portion of such benefit received under
the workman’s compensation act which equals such
reduction.
‘‘(4) TIER
RAILROAD
RETIREMENT
BENE-
FIT.—For purposes of paragraph (1), the term ‘tier
1 railroad retirement benefit’ has the meaning given
to such term by section 72(r)(3).’’
(b) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Paragraph (8) of section 861(a) of such
Code is amended by striking out ‘‘86(d)’’ and insert-
ing in lieu thereof ‘‘871(j)’’.