658
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply to the estates of decedents dying
after the date of the enactment of this Act.
SEC. 1317. AUTHORITY TO WAIVE REQUIREMENT OF UNIT-
ED STATES TRUSTEE FOR QUALIFIED DOMES-
TIC TRUSTS.
(a) IN GENERAL.—Subparagraph (A) of section
2056A(a)(1) is amended by inserting ‘‘except as provided
in regulations prescribed by the Secretary,’’ before ‘‘re-
quires’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to estates of decedents dying after
the date of the enactment of this Act.
659
TITLE 
XIV—SIMPLIFICATION
PROVISIONS 
RELATING 
TO
EXCISE TAXES, TAX-EXEMPT
BONDS, AND OTHER MATTERS
Subtitle A—Excise Tax
Simplification
PART I—EXCISE TAXES ON HEAVY TRUCKS AND
LUXURY CARS
SEC. 1401. INCREASE IN DE MINIMIS LIMIT FOR AFTER-
MARKET ALTERATIONS FOR HEAVY TRUCKS
AND LUXURY CARS.
(a) IN
GENERAL.—Sections 4003(a)(3)(C) and
4051(b)(2)(B) (relating to exceptions) are each amended
by striking ‘‘$200’’ and inserting ‘‘$1,000’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall apply to installations on vehicles sold
after the date of the enactment of this Act.
SEC. 1402. CREDIT FOR TIRE TAX IN LIEU OF EXCLUSION
OF VALUE OF TIRES IN COMPUTING PRICE.
(a) IN GENERAL.—Subsection (e) of section 4051 is
amended to read as follows:
‘‘(e) CREDIT AGAINST TAX FOR TIRE TAX.—If—
‘‘(1) tires are sold on or in connection with the
sale of any article, and
660
‘‘(2) tax is imposed by this subchapter on the
sale of such tires,
there shall be allowed as a credit against the tax imposed
by this subchapter an amount equal to the tax (if any)
imposed by section 4071 on such tires.’’.
(b) CONFORMING AMENDMENT.—Subparagraph (B)
of section 4052(b)(1) is amended by striking clause (iii),
by adding ‘‘and’’ at the end of clause (ii), and by redesig-
nating clause (iv) as clause (iii).
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on January 1, 1998.
PART II—PROVISIONS RELATED TO DISTILLED
SPIRITS, WINES, AND BEER
SEC. 1411. CREDIT OR REFUND FOR IMPORTED BOTTLED
DISTILLED 
SPIRITS 
RETURNED 
TO 
DIS-
TILLED SPIRITS PLANT.
(a) IN GENERAL.—Section 5008(c)(1) (relating to
distilled spirits returned to bonded premises) is amended
by striking ‘‘withdrawn from bonded premises on payment
or determination of tax’’ and inserting ‘‘on which tax has
been determined or paid’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect on the 1st day of the 1st
calendar quarter that begins at least 90 days after the
date of the enactment of this Act.
661
SEC. 1412. AUTHORITY TO CANCEL OR CREDIT EXPORT
BONDS WITHOUT SUBMISSION OF RECORDS.
(a) IN GENERAL.—Section 5175(c) (relating to can-
cellation of credit of export bonds) is amended by striking
‘‘on the submission of’’ and all that follows and inserting
‘‘if there is such proof of exportation as the Secretary may
by regulations require.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect on the 1st day of the 1st
calendar quarter that begins at least 90 days after the
date of the enactment of this Act.
SEC. 1413. REPEAL OF REQUIRED MAINTENANCE OF
RECORDS ON PREMISES OF DISTILLED SPIR-
ITS PLANT.
(a) IN GENERAL.—Section 5207(c) (relating to pres-
ervation and inspection) is amended by striking ‘‘shall be
kept on the premises where the operations covered by the
record are carried on and’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect on the 1st day of the 1st
calendar quarter that begins at least 90 days after the
date of the enactment of this Act.
662
SEC. 1414. FERMENTED MATERIAL FROM ANY BREWERY
MAY BE RECEIVED AT A DISTILLED SPIRITS
PLANT.
(a) IN GENERAL.—Section 5222(b)(2) (relating to
receipt) is amended to read as follows:
‘‘(2) beer conveyed without payment of tax
from brewery premises, beer which has been lawfully
removed from brewery premises upon determination
of tax, or’’.
(b) CLARIFICATION OF AUTHORITY TO PERMIT RE-
MOVAL OF BEER WITHOUT PAYMENT OF TAX FOR USE
AS DISTILLING MATERIAL.—Section 5053 (relating to ex-
emptions) is amended by redesignating subsection (f) as
subsection (i) and by inserting after subsection (e) the fol-
lowing new subsection:
‘‘(f) REMOVAL
FOR USE
AS DISTILLING MATE-
RIAL.—Subject to such regulations as the Secretary may
prescribe, beer may be removed from a brewery without
payment of tax to any distilled spirits plant for use as
distilling material.’’.
(c) CLARIFICATION
OF REFUND
AND CREDIT
OF
TAX.—Section 5056 (relating to refund and credit of tax,
or relief from liability) is amended—
(1) by redesignating subsection (c) as sub-
section (d) and by inserting after subsection (b) the
following new subsection:
663
‘‘(c) BEER RECEIVED
AT
A DISTILLED SPIRITS
PLANT.—Any tax paid by any brewer on beer produced
in the United States may be refunded or credited to the
brewer, without interest, or if the tax has not been paid,
the brewer may be relieved of liability therefor, under reg-
ulations as the Secretary may prescribe, if such beer is
received on the bonded premises of a distilled spirits plant
pursuant to the provisions of section 5222(b)(2), for use
in the production of distilled spirits.’’, and
(2) by striking ‘‘or rendering unmerchantable’’
in subsection (d) (as so redesignated) and inserting
‘‘rendering unmerchantable, or receipt on the bond-
ed premises of a distilled spirits plant’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall take effect on the 1st day of the 1st cal-
endar quarter that begins at least 90 days after the date
of the enactment of this Act.
SEC. 1415. REPEAL OF REQUIREMENT FOR WHOLESALE
DEALERS IN LIQUORS TO POST SIGN.
(a) IN GENERAL.—Section 5115 (relating to sign re-
quired on premises) is hereby repealed.
(b) CONFORMING AMENDMENTS.—
(1) Section 5681(a) is amended by striking ‘‘,
and every wholesale dealer in liquors,’’ and by strik-
ing ‘‘section 5115(a) or’’.
664
(2) Section 5681(c) is amended—
(A) by striking ‘‘or wholesale liquor estab-
lishment, on which no sign required by section
5115(a) or’’ and inserting ‘‘on which no sign
required by’’, and
(B) by striking ‘‘or wholesale liquor estab-
lishment, or who’’ and inserting ‘‘or who’’.
(3) The table of sections for subpart D of part
II of subchapter A of chapter 51 is amended by
striking the item relating to section 5115.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on the date of the enactment
of this Act.
SEC. 1416. REFUND OF TAX TO WINE RETURNED TO BOND
NOT LIMITED TO UNMERCHANTABLE WINE.
(a) IN GENERAL.—Section 5044(a) (relating to re-
fund of tax on unmerchantable wine) is amended by strik-
ing ‘‘as unmerchantable’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 5361 is amended by striking
‘‘unmerchantable’’.
(2) The section heading for section 5044 is
amended by striking ‘‘UNMERCHANTABLE’’.
(3) The item relating to section 5044 in the
table of sections for subpart C of part I of sub-
665
chapter A of chapter 51 is amended by striking
‘‘unmerchantable’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on the 1st day of the 1st cal-
endar quarter that begins at least 90 days after the date
of the enactment of this Act.
SEC. 1417. USE OF ADDITIONAL AMELIORATING MATERIAL
IN CERTAIN WINES.
(a) IN GENERAL.—Section 5384(b)(2)(D) (relating
to ameliorated fruit and berry wines) is amended by strik-
ing ‘‘loganberries, currants, or gooseberries,’’ and insert-
ing ‘‘any fruit or berry with a natural fixed acid of 20
parts per thousand or more (before any correction of such
fruit or berry)’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall take effect on the 1st day of the 1st cal-
endar quarter that begins at least 90 days after the date
of the enactment of this Act.
SEC. 1418. DOMESTICALLY PRODUCED BEER MAY BE WITH-
DRAWN FREE OF TAX FOR USE OF FOREIGN
EMBASSIES, LEGATIONS, ETC.
(a) IN GENERAL.—Section 5053 (relating to exemp-
tions), as amended by section 1414(b), is amended by in-
serting after subsection (f) the following new subsection:
666
‘‘(g) REMOVALS FOR USE OF FOREIGN EMBASSIES,
LEGATIONS, ETC.—
‘‘(1) IN GENERAL.—Subject to such regulations
as the Secretary may prescribe—
‘‘(A) beer may be withdrawn from the
brewery without payment of tax for transfer to
any customs bonded warehouse for entry pend-
ing withdrawal therefrom as provided in sub-
paragraph (B), and
‘‘(B) beer entered into any customs bonded
warehouse under subparagraph (A) may be
withdrawn for consumption in the United
States by, and for the official and family use of,
such foreign governments, organizations, and
individuals as are entitled to withdraw imported
beer from such warehouses free of tax.
Beer transferred to any customs bonded warehouse
under subparagraph (A) shall be entered, stored,
and accounted for in such warehouse under such
regulations and bonds as the Secretary may pre-
scribe, and may be withdrawn therefrom by such
governments, organizations, and individuals free of
tax under the same conditions and procedures as im-
ported beer.
667
‘‘(2) OTHER RULES TO APPLY.—Rules similar
to the rules of paragraphs (2) and (3) of section
5362(e) shall apply for purposes of this subsection.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect on the 1st day of the 1st
calendar quarter that begins at least 90 days after the
date of the enactment of this Act.
SEC. 1419. BEER MAY BE WITHDRAWN FREE OF TAX FOR
DESTRUCTION.
(a) IN GENERAL.—Section 5053 (relating to exemp-
tions), as amended by section 1418(a), is amended by in-
serting after subsection (g) the following new subsection:
‘‘(h) REMOVALS
FOR DESTRUCTION.—Subject to
such regulations as the Secretary may prescribe, beer may
be removed from the brewery without payment of tax for
destruction.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect on the 1st day of the 1st
calendar quarter that begins at least 90 days after the
date of the enactment of this Act.
SEC. 1420. AUTHORITY TO ALLOW DRAWBACK ON EX-
PORTED BEER WITHOUT SUBMISSION OF
RECORDS.
(a) IN GENERAL.—The first sentence of section 5055
(relating to drawback of tax on beer) is amended by strik-
668
ing ‘‘found to have been paid’’ and all that follows and
inserting ‘‘paid on such beer if there is such proof of ex-
portation as the Secretary may by regulations require.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect on the 1st day of the 1st
calendar quarter that begins at least 90 days after the
date of the enactment of this Act.
SEC. 1421. TRANSFER TO BREWERY OF BEER IMPORTED IN
BULK WITHOUT PAYMENT OF TAX.
(a) IN GENERAL.—Part II of subchapter G of chap-
ter 51 is amended by adding at the end the following new
section:
‘‘SEC. 5418. BEER IMPORTED IN BULK.
‘‘Beer imported or brought into the United States in
bulk containers may, under such regulations as the Sec-
retary may prescribe, be withdrawn from customs custody
and transferred in such bulk containers to the premises
of a brewery without payment of the internal revenue tax
imposed on such beer. The proprietor of a brewery to
which such beer is transferred shall become liable for the
tax on the beer withdrawn from customs custody under
this section upon release of the beer from customs custody,
and the importer, or the person bringing such beer into
the United States, shall thereupon be relieved of the liabil-
ity for such tax.’’.
669
(b) CLERICAL AMENDMENT.—The table of sections
for such part II is amended by adding at the end the fol-
lowing new item:
‘‘Sec. 5418. Beer imported in bulk.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on the 1st day of the 1st cal-
endar quarter that begins at least 90 days after the date
of the enactment of this Act.
SEC. 1422. TRANSFER TO BONDED WINE CELLARS OF WINE
IMPORTED IN BULK WITHOUT PAYMENT OF
TAX.
(a) IN GENERAL.—Part II of subchapter F of chap-
ter 51 is amended by inserting after section 5363 the fol-
lowing new section:
‘‘SEC. 5364. WINE IMPORTED IN BULK.
‘‘Wine imported or brought into the United States
in bulk containers may, under such regulations as the Sec-
retary may prescribe, be withdrawn from customs custody
and transferred in such bulk containers to the premises
of a bonded wine cellar without payment of the internal
revenue tax imposed on such wine. The proprietor of a
bonded wine cellar to which such wine is transferred shall
become liable for the tax on the wine withdrawn from cus-
toms custody under this section upon release of the wine
from customs custody, and the importer, or the person
670
bringing such wine into the United States, shall thereupon
be relieved of the liability for such tax.’’.
(b) CLERICAL AMENDMENT.—The table of sections
for such part II is amended by inserting after the item
relating to section 5363 the following new item:
‘‘Sec. 5364. Wine imported in bulk.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on the 1st day of the 1st cal-
endar quarter that begins at least 90 days after the date
of the enactment of this Act.
PART III—OTHER EXCISE TAX PROVISIONS
SEC. 1431. AUTHORITY TO GRANT EXEMPTIONS FROM REG-
ISTRATION REQUIREMENTS.
(a) IN GENERAL.—Section 4222(b)(2) (relating to
export) is amended—
(1) by striking ‘‘in the case of any sale or resale
for export,’’, and
(2) by striking ‘‘EXPORT’’ and inserting
‘‘UNDER REGULATIONS’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall take effect on the date of the enact-
ment of this Act.
SEC. 1432. REPEAL OF EXPIRED PROVISIONS.
(a) PIGGY-BACK TRAILERS.—Section 4051 (relating
to imposition of tax on heavy trucks and trailers sold at
671
retail) is amended by striking subsection (d) and by redes-
ignating subsection (e) as subsection (d).
(b) DEEP SEABED MINING.—
(1) IN GENERAL.—Subchapter F of chapter 36
(relating to tax on removal of hard mineral re-
sources from deep seabed) is hereby repealed.
(2) CONFORMING AMENDMENT.—The table of
subchapters for chapter 36 is amended by striking
the item relating to subchapter F.
(c) OZONE-DEPLETING CHEMICALS.—
(1) Paragraph (1) of section 4681(b) is amend-
ed by striking subparagraphs (B) and (C) and in-
serting the following new subparagraph:
‘‘(B) BASE TAX AMOUNT.—The base tax
amount for purposes of subparagraph (A) with
respect to any sale or use during any calendar
year after 1995 shall be $5.35 increased by 45
cents for each year after 1995.’’.
(2) Subsection (g) of section 4682 is amended
to read as follows:
‘‘(g) CHEMICALS USED AS PROPELLANTS IN ME-
TERED-DOSE INHALERS.—
‘‘(1) EXEMPTION FROM TAX.—
‘‘(A) IN GENERAL.—No tax shall be im-
posed by section 4681 on—
672
‘‘(i) any use of any substance as a
propellant in metered-dose inhalers, or
‘‘(ii) any qualified sale by the manu-
facturer, producer, or importer of any sub-
stance.
‘‘(B) QUALIFIED SALE.—For purposes of
subparagraph (A), the term ‘qualified sale’
means any sale by the manufacturer, producer,
or importer of any substance—
‘‘(i) for use by the purchaser as a pro-
pellant in metered dose inhalers, or
‘‘(ii) for resale by the purchaser to a
2d purchaser for such use by the 2d pur-
chaser.
The preceding sentence shall apply only if the
manufacturer, producer, and importer, and the
1st and 2d purchasers (if any) meet such reg-
istration requirements as may be prescribed by
the Secretary.
‘‘(2) OVERPAYMENTS.—If any substance on
which tax was paid under this subchapter is used by
any person as a propellant in metered-dose inhalers,
credit or refund without interest shall be allowed to
such person in an amount equal to the tax so paid.
Amounts payable under the preceding sentence with
673
respect to uses during the taxable year shall be
treated as described in section 34(a) for such year
unless claim thereof has been timely filed under this
paragraph.’’.
Subtitle B—Tax-Exempt Bond
Provisions
SEC. 1441. REPEAL OF $100,000 LIMITATION ON UNSPENT
PROCEEDS UNDER 1-YEAR EXCEPTION FROM
REBATE.
Subclause (I) of section 148(f)(4)(B)(ii) (relating to
additional period for certain bonds) is amended by striking
‘‘the lesser of 5 percent of the proceeds of the issue or
$100,000’’ and inserting ‘‘5 percent of the proceeds of the
issue’’.
SEC. 1442. EXCEPTION FROM REBATE FOR EARNINGS ON
BONA FIDE DEBT SERVICE FUND UNDER
CONSTRUCTION BOND RULES.
Subparagraph (C) of section 148(f)(4) is amended by
adding at the end the following new clause:
‘‘(xvii) TREATMENT
OF
BONA
FIDE
DEBT
SERVICE
FUNDS.—If the spending
requirements of clause (ii) are met with re-
spect to the available construction proceeds
of a construction issue, then paragraph (2)
674
shall not apply to earnings on a bona fide
debt service fund for such issue.’’.
SEC. 1443. REPEAL OF DEBT SERVICE-BASED LIMITATION
ON INVESTMENT IN CERTAIN NONPURPOSE
INVESTMENTS.
Subsection (d) of section 148 (relating to special
rules for reasonably required reserve or replacement fund)
is amended by striking paragraph (3).
SEC. 1444. REPEAL OF EXPIRED PROVISIONS.
(a) Paragraph (2) of section 148(c) is amended by
striking subparagraph (B) and by redesignating subpara-
graphs (C), (D), and (E) as subparagraphs (B), (C), and
(D), respectively.
(b) Paragraph (4) of section 148(f) is amended by
striking subparagraph (E).
SEC. 1445. EFFECTIVE DATE.
The amendments made by this subtitle shall apply to
bonds issued after the date of the enactment of this Act.
Subtitle C—Tax Court Procedures
SEC. 
1451. 
OVERPAYMENT 
DETERMINATIONS 
OF 
TAX
COURT.
(a) APPEAL OF ORDER.—Paragraph (2) of section
6512(b) (relating to jurisdiction to enforce) is amended
by adding at the end the following new sentence: ‘‘An
order of the Tax Court disposing of a motion under this
675
paragraph shall be reviewable in the same manner as a
decision of the Tax Court, but only with respect to the
matters determined in such order.’’.
(b) DENIAL OF JURISDICTION REGARDING CERTAIN
CREDITS AND REDUCTIONS.—Subsection (b) of section
6512 (relating to overpayment determined by Tax Court)
is amended by adding at the end the following new para-
graph:
‘‘(4) DENIAL
OF
JURISDICTION
REGARDING
CERTAIN
CREDITS
AND
REDUCTIONS.—The Tax
Court shall have no jurisdiction under this sub-
section to restrain or review any credit or reduction
made by the Secretary under section 6402.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on the date of the enactment
of this Act.
SEC. 1452. REDETERMINATION OF INTEREST PURSUANT TO
MOTION.
(a) IN GENERAL.—Subsection (c) of section 7481
(relating to jurisdiction over interest determinations) is
amended to read as follows:
‘‘(c) JURISDICTION OVER INTEREST DETERMINA-
TIONS.—
‘‘(1) IN GENERAL.—Notwithstanding subsection
(a), if, within 1 year after the date the decision of
676
the Tax Court becomes final under subsection (a) in
a case to which this subsection applies, the taxpayer
files a motion in the Tax Court for a redetermina-
tion of the amount of interest involved, then the Tax
Court may reopen the case solely to determine
whether the taxpayer has made an overpayment of
such interest or the Secretary has made an under-
payment of such interest and the amount thereof.
‘‘(2) CASES TO WHICH THIS SUBSECTION AP-
PLIES.—This subsection shall apply where—
‘‘(A)(i) an assessment has been made by
the Secretary under section 6215 which in-
cludes interest as imposed by this title, and
‘‘(ii) the taxpayer has paid the entire
amount of the deficiency plus interest claimed
by the Secretary, and
‘‘(B) the Tax Court finds under section
6512(b) that the taxpayer has made an over-
payment.
‘‘(3) SPECIAL RULES.—If the Tax Court deter-
mines under this subsection that the taxpayer has
made an overpayment of interest or that the Sec-
retary has made an underpayment of interest, then
that determination shall be treated under section
6512(b)(1) as a determination of an overpayment of
677
tax. An order of the Tax Court redetermining inter-
est, when entered upon the records of the court,
shall be reviewable in the same manner as a decision
of the Tax Court.’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall take effect on the date of the enactment
of this Act.
SEC. 1453. APPLICATION OF NET WORTH REQUIREMENT
FOR AWARDS OF LITIGATION COSTS.
(a) IN GENERAL.—Paragraph (4) of section 7430(c)
(defining prevailing party) is amended by adding at the
end thereof the following new subparagraph:
‘‘(D) SPECIAL RULES FOR APPLYING NET
WORTH
REQUIREMENT.—In applying the re-
quirements of section 2412(d)(2)(B) of title 28,
United States Code, for purposes of subpara-
graph (A)(iii) of this paragraph—
‘‘(i) the net worth limitation in clause
(i) of such section shall apply to—
‘‘(I) an estate but shall be deter-
mined as of the date of the decedent’s
death, and
‘‘(II) a trust but shall be deter-
mined as of the last day of the taxable
year involved in the proceeding, and
678
‘‘(ii) individuals filing a joint return
shall be treated as 1 individual for pur-
poses of clause (i) of such section, except
in the case of a spouse relieved of liability
under section 6013(e).’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to proceedings commenced after
the date of the enactment of this Act.
SEC. 1454. PROCEEDINGS FOR DETERMINATION OF EM-
PLOYMENT STATUS.
(a) IN GENERAL.—Subchapter B of chapter 76 (re-
lating to proceedings by taxpayers and third parties) is
amended by redesignating section 7435 as section 7436
and by inserting after section 7434 the following new sec-
tion:
‘‘SEC. 7435. PROCEEDINGS FOR DETERMINATION OF EM-
PLOYMENT STATUS.
‘‘(a) CREATION OF REMEDY.—If, in connection with
an audit of any person, there is an actual controversy in-
volving a determination by the Secretary as part of an ex-
amination that—
‘‘(1) one or more individuals performing serv-
ices for such person are employees of such person
for purposes of subtitle C, or
679
‘‘(2) such person is not entitled to the treat-
ment under subsection (a) of section 530 of the Rev-
enue Act of 1978 with respect to such an individual,
upon the filing of an appropriate pleading, the Tax Court
may determine whether such a determination by the Sec-
retary is correct. Any such determination by the Tax
Court shall have the force and effect of a decision of the
Tax Court and shall be reviewable as such.
‘‘(b) LIMITATIONS.—
‘‘(1) PETITIONER.—A pleading may be filed
under this section only by the person for whom the
services are performed.
‘‘(2) TIME FOR FILING ACTION.—If the Sec-
retary sends by certified or registered mail notice to
the petitioner of a determination by the Secretary
described in subsection (a), no proceeding may be
initiated under this section with respect to such de-
termination unless the pleading is filed before the
91st day after the date of such mailing.
‘‘(3) NO ADVERSE INFERENCE FROM TREAT-
MENT WHILE ACTION IS PENDING.—If, during the
pendency of any proceeding brought under this sec-
tion, the petitioner changes his treatment for em-
ployment tax purposes of any individual whose em-
ployment status as an employee is involved in such
680
proceeding (or of any individual holding a substan-
tially similar position) to treatment as an employee,
such change shall not be taken into account in the
Tax Court’s determination under this section.
‘‘(c) SMALL CASE PROCEDURES.—
‘‘(1) IN GENERAL.—At the option of the peti-
tioner, concurred in by the Tax Court or a division
thereof before the hearing of the case, proceedings
under this section may (notwithstanding the provi-
sions of section 7453) be conducted subject to the
rules of evidence, practice, and procedure applicable
under section 7463 if the amount of employment
taxes placed in dispute is $10,000 or less for each
calendar quarter involved.
‘‘(2) FINALITY OF DECISIONS.—A decision en-
tered in any proceeding conducted under this sub-
section shall not be reviewed in any other court and
shall not be treated as a precedent for any other
case not involving the same petitioner and the same
determinations.
‘‘(3) CERTAIN RULES TO APPLY.—Rules similar
to the rules of the last sentence of subsection (a),
and subsections (c), (d), and (e), of section 7463
shall apply to proceedings conducted under this sub-
section.
681
‘‘(d) SPECIAL RULES.—
‘‘(1) RESTRICTIONS ON ASSESSMENT AND COL-
LECTION PENDING ACTION, ETC.—The principles of
subsections (a), (b), and (d) of section 6213, section
6214(a), section 6503(a), and section 6512 shall
apply to proceedings brought under this section in
the same manner as if the Secretary’s determination
described in subsection (a) were a notice of defi-
ciency.
‘‘(2) AWARDING
OF
COSTS
AND
CERTAIN
FEES.—Section 7430 shall apply to proceedings
brought under this section.
‘‘(e) EMPLOYMENT TAX.—The term ‘employment
tax’ means any tax imposed by subtitle C.’’.
(b) CONFORMING AMENDMENTS.—
(1) Subsection (d) of section 6511 is amended
by adding at the end the following new paragraph:
‘‘(7) SPECIAL PERIOD OF LIMITATION WITH RE-
SPECT
TO
SELF-EMPLOYMENT
TAX
IN
CERTAIN
CASES.—If—
‘‘(A) the claim for credit or refund relates
to an overpayment of the tax imposed by chap-
ter 2 (relating to the tax on self-employment in-
come) attributable to Tax Court determination
in a proceeding under section 7435, and
682
‘‘(B) the allowance of a credit or refund of
such overpayment is otherwise prevented by the
operation of any law or rule of law other than
section 7122 (relating to compromises),
such credit or refund may be allowed or made if
claim therefor is filed on or before the last day of
the second year after the calendar year in which
such determination becomes final.’’.
(2) Sections 7453 and 7481(b) are each amend-
ed by striking ‘‘section 7463’’ and inserting ‘‘section
7435(c) or 7463’’.
(3) The table of sections for subchapter B of
chapter 76 is amended by striking the last item and
inserting the following:
‘‘Sec. 7435. Proceedings for determination of employment status.
‘‘Sec. 7436. Cross references.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on the date of the enactment
of this Act.
Subtitle D—Other Provisions
SEC. 1461. EXTENSION OF DUE DATE OF FIRST QUARTER
ESTIMATED 
TAX 
PAYMENT 
BY 
PRIVATE
FOUNDATIONS.
(a) IN GENERAL.—Paragraph (3) of section 6655(g)
is amended by adding at the end the following new sen-
tence: ‘‘In the case of a private foundation, subsection
683
(c)(2) shall be applied by substituting ‘May 15’ for ‘April
15’.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply for purposes of determining un-
derpayments of estimated tax for taxable years beginning
after the date of the enactment of this Act.
SEC. 1462. CLARIFICATION OF AUTHORITY TO WITHHOLD
PUERTO RICO INCOME TAXES FROM SALA-
RIES OF FEDERAL EMPLOYEES.
(a) IN GENERAL.—Subsection (c) of section 5517 of
title 5, United States Code, is amended by striking ‘‘or
territory or possession’’ and inserting ‘‘, territory, posses-
sion, or commonwealth’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect on January 1, 1998.
SEC. 1463. CERTAIN NOTICES DISREGARDED UNDER PROVI-
SION INCREASING INTEREST RATE ON LARGE
CORPORATE UNDERPAYMENTS.
(a) GENERAL RULE.—Subparagraph (B) of section
6621(c)(2) (defining applicable date) is amended by add-
ing at the end the following new clause:
‘‘(iii) EXCEPTION
FOR
LETTERS
OR
NOTICES
INVOLVING
SMALL
AMOUNTS.—
For purposes of this paragraph, any letter
or notice shall be disregarded if the
684
amount of the deficiency or proposed defi-
ciency (or the assessment or proposed as-
sessment) set forth in such letter or notice
is not greater than $100,000 (determined
by not taking into account any interest,
penalties, or additions to tax).’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply for purposes of determining in-
terest for periods after December 31, 1997.
TITLE XV—TECHNICAL AMEND-
MENTS RELATED TO SMALL
BUSINESS JOB PROTECTION
ACT OF 1996 AND OTHER LEG-
ISLATION
SEC. 1501. AMENDMENTS RELATED TO SMALL BUSINESS
JOB PROTECTION ACT OF 1996.
(a) AMENDMENTS RELATED TO SUBTITLE A.—
(1) AMENDMENT RELATED TO SECTION 1116.—
Paragraph (1) of section 6050R(c) is amended by
striking ‘‘name and address’’ and inserting ‘‘name,
address, and phone number of the information con-
tact’’.
(2) AMENDMENT
TO
SECTION
1116.—Para-
graphs (1) and (2)(C) of section 1116(b) of the
Small Business Job Protection Act of 1996 shall
685
each be applied as if the reference to chapter 68
were a reference to chapter 61.
(b) AMENDMENT RELATED TO SUBTITLE B.—Sub-
section (c) of section 52 is amended by striking ‘‘targeted
jobs credit’’ and inserting ‘‘work opportunity credit’’.
(c) AMENDMENTS RELATED TO SUBTITLE C.—
(1) AMENDMENT RELATED TO SECTION 1302.—
Subparagraph (B) of section 1361(e)(1) is amended
by striking ‘‘and’’ at the end of clause (i), striking
the period at the end of clause (ii) and inserting ‘‘,
and’’, and adding at the end the following new
clause:
‘‘(iii) any charitable remainder annu-
ity trust or charitable remainder unitrust
(as defined in section 664(d)).’’.
(2) EFFECTIVE DATE FOR SECTION 1307.—
(A) Notwithstanding section 1317 of the
Small Business Job Protection Act of 1996, the
amendments made by subsections (a) and (b) of
section 1307 of such Act shall apply to deter-
minations made after December 31, 1996.
(B) In no event shall the 120-day period
referred to in section 1377(b)(1)(B) of the In-
ternal Revenue Code of 1986 (as added by such
section 1307) expire before the end of the 120-
686
day period beginning on the date of the enact-
ment of this Act.
(3) AMENDMENT RELATED TO SECTION 1308.—
Subparagraph (A) of section 1361(b)(3) is amended
by striking ‘‘For purposes of this title’’ and inserting
‘‘Except as provided in regulations prescribed by the
Secretary, for purposes of this title’’.
(4) 
AMENDMENTS
RELATED
TO
SECTION
1316.—
(A) Paragraph (2) of section 512(e) is
amended by striking ‘‘within the meaning of
section 1012’’ and inserting ‘‘as defined in sec-
tion 1361(e)(1)(C)’’.
(B) Paragraph (7) of section 1361(c) is re-
designated as paragraph (6).
(C) 
Subparagraph 
(B) 
of 
section
1361(b)(1) is amended by striking ‘‘subsection
(c)(7)’’ and inserting ‘‘subsection (c)(6)’’.
(D) Paragraph (1) of section 512(e) is
amended by striking ‘‘section 1361(c)(7)’’ and
inserting ‘‘section 1361(e)(6)’’.
(d) AMENDMENTS RELATED TO SUBTITLE D.—
(1) 
AMENDMENTS
RELATED
TO
SECTION
1421.—
687
(A) Subsection (i) of section 408 is amend-
ed in the last sentence by striking ‘‘30 days’’
and inserting ‘‘31 days’’.
(B) 
Subparagraph 
(H) 
of 
section
408(k)(6) is amended by striking ‘‘if the terms
of such pension’’ and inserting ‘‘of an employer
if the terms of simplified employee pensions of
such employer’’.
(C)(i) 
Subparagraph 
(B) 
of 
section
408(l)(2) is amended—
(I) by inserting ‘‘and the issuer of an
annuity established under such an arrange-
ment’’ after ‘‘under subsection (p)’’, and
(II) in clause (i), by inserting ‘‘or is-
suer’’ after ‘‘trustee’’.
(ii) Paragraph (2) of section 6693(c) is
amended—
(I) by inserting ‘‘or issuer’’ after
‘‘trustee’’, and
(II) in the heading, by inserting ‘‘AND
ISSUER’’ after ‘‘trustee’’.
(D) Subsection (p) of section 408 is
amended by adding at the end the following
new paragraph:
688
‘‘(8) COORDINATION
WITH
MAXIMUM
LIMITA-
TION UNDER SUBSECTION (a).—In the case of any
simple retirement account, subsections (a)(1) and
(b)(2) shall be applied by substituting ‘the sum of
the dollar amount in effect under paragraph
(2)(A)(ii) of this subsection and the employer con-
tribution required under subparagraph (A)(iii) or
(B)(i) of paragraph (2) of this subsection, whichever
is applicable’ for ‘$2,000’.’’.
(E) Clause (i) of section 408(p)(2)(D) is
amended by adding at the end the following
new sentence: ‘‘If only individuals other than
employees described in subparagraph (A) or (B)
of section 410(b)(3) are eligible to participate
in such arrangement, then the preceding sen-
tence shall be applied without regard to any
qualified plan in which only employees so de-
scribed are eligible to participate.’’.
(F) Subparagraph (D) of section 408(p)(2)
is amended by adding at the end the following
new clause:
‘‘(iii) GRACE PERIOD.—In the case of
an employer who establishes and maintains
a plan under this subsection for 1 or more
years and who fails to meet the require-
689
ments of this subparagraph for any subse-
quent year due to any acquisition, disposi-
tion, or similar transaction involving an-
other such employer, rules similar to the
rules of section 410(b)(6)(C) shall apply
for purposes of this subparagraph.’’.
(G) Paragraph (5) of section 408(p) is
amended in the text preceding subparagraph
(A) by striking ‘‘simplified’’ and inserting ‘‘sim-
ple’’.
(2) 
AMENDMENTS
RELATED
TO
SECTION
1422.—
(A) Clause (ii) of section 401(k)(11)(D) is
amended by striking the period and inserting
‘‘if such plan allows only contributions required
under this paragraph.’’.
(B) Paragraph (11) of section 401(k) is
amended by adding at the end the following
new subparagraph:
‘‘(E) COST-OF-LIVING ADJUSTMENT.—The
Secretary shall adjust the $6,000 amount under
subparagraph (B)(i)(I) at the same time and in
the 
same 
manner 
as 
under 
section
408(p)(2)(E).’’.
690
(C) Subparagraph (A) of section 404(a)(3)
is amended—
(i) in clause (i), by striking ‘‘not in
excess of’’ and all that follows and insert-
ing the following: ‘‘not in excess of the
greater of—
‘‘(I) 15 percent of the compensa-
tion otherwise paid or accrued during
the taxable year to the beneficiaries
under the stock bonus or profit-shar-
ing plan, or
‘‘(II) the amount such employer
is required to contribute to such trust
under section 401(k)(11) for such
year.’’, and
(ii) in clause (ii), by striking ‘‘15 per-
cent’’ and all that follows and inserting the
following ‘‘the amount described in sub-
clause (I) or (II) of clause (i), whichever is
greater, with respect to such taxable
year.’’.
(D) 
Subparagraph 
(B) 
of 
section
401(k)(11) is amended by adding at the end
the following new clause:
691
‘‘(iii) 
ADMINISTRATIVE
REQUIRE-
MENTS.—
‘‘(I) IN GENERAL.—Rules similar
to the rules of subparagraphs (B) and
(C) of section 408(p)(5) shall apply
for purposes of this subparagraph.
‘‘(II) NOTICE OF ELECTION PE-
RIOD.—The requirements of this sub-
paragraph shall not be treated as met
with respect to any year unless the
employer notifies each employee eligi-
ble to participate, within a reasonable
period of time before the 60th day be-
fore the beginning of such year (and,
for the first year the employee is so
eligible, the 60th day before the first
day such employee is so eligible), of
the rules similar to the rules of sec-
tion 408(p)(5)(C) which apply by rea-
son of subclause (I).’’.
(3) AMENDMENT RELATED TO SECTION 1433.—
The heading of paragraph (11) of section 401(m) is
amended by striking ‘‘ALTERNATIVE’’ and inserting
‘‘ADDITIONAL ALTERNATIVE’’.
692
(4) AMENDMENT RELATED TO SECTION 1462.—
The paragraph (7) of section 414(q) added by sec-
tion 1462 of the Small Business Job Protection Act
of 1996 is redesignated as paragraph (9).
(5) CLARIFICATION OF SECTION 1450.—
(A) Section 403(b)(11) of the Internal
Revenue Code of 1986 shall not apply with re-
spect to a distribution from a contract de-
scribed in section 1450(b)(1) of such Act to the
extent that such distribution is not includible in
income by reason of section 403(b)(8) of such
Code (determined after the application of sec-
tion 1450(b)(2) of such Act).
(B) This paragraph shall apply as if in-
cluded in section 1450 of the Small Business
Job Protection Act of 1996.
(e) AMENDMENT RELATED TO SUBTITLE E.—Sub-
paragraph (A) of section 956(b)(1) is amended by insert-
ing ‘‘to the extent such amount was accumulated in prior
taxable years’’ after ‘‘section 316(a)(1)’’.
(f) AMENDMENTS RELATED TO SUBTITLE F.—
(1) 
AMENDMENTS
RELATED
TO
SECTION
1601.—
(A) The heading of section 30A is amend-
ed to read as follows:
693
‘‘SEC. 30A. PUERTO RICO ECONOMIC ACTIVITY CREDIT.’’.
(B) The table of sections for subpart B of
part IV of subchapter A of chapter 1 is amend-
ed in the item relating to section 30A by strik-
ing ‘‘Puerto Rican’’ and inserting ‘‘Puerto
Rico’’.
(C) Paragraph (1) of section 55(c) is
amended by striking ‘‘Puerto Rican’’ and in-
serting ‘‘Puerto Rico’’.
(2) 
AMENDMENTS
RELATED
TO
SECTION
1606.—
(A) Clause (ii) of section 9503(c)(2)(A) is
amended by striking ‘‘(or with respect to quali-
fied diesel-powered highway vehicles purchased
before January 1, 1999)’’.
(B) 
Subparagraph 
(A) 
of 
section
9503(e)(5) is amended by striking ‘‘; except
that’’ and all that follows and inserting a pe-
riod.
(3) 
AMENDMENTS
RELATED
TO
SECTION
1607.—
(A) Subsection (f) of section 4001 (relat-
ing to phasedown of tax on luxury passenger
automobiles) is amended—
(i) by inserting ‘‘and section 4003(a)’’
after ‘‘subsection (a)’’, and
694
(ii) by inserting ‘‘, each place it ap-
pears,’’ before ‘‘the percentage’’.
(B) Subsection (g) of section 4001 (relat-
ing to termination) is amended by striking ‘‘tax
imposed by this section’’ and inserting ‘‘taxes
imposed by this section and section 4003’’ and
by striking ‘‘or use’’ and inserting ‘‘, use, or in-
stallation’’.
(4) 
AMENDMENTS
RELATED
TO
SECTION
1609.—
(A) Subsection (l) of section 4041 is
amended—
(i) by inserting ‘‘or a fixed-wing air-
craft’’ after ‘‘helicopter’’, and
(ii) in the heading, by striking ‘‘HELI-
COPTER’’.
(B) 
The 
last 
sentence 
of 
section
4041(a)(2) is amended by striking ‘‘section
4081(a)(2)(A)’’ 
and 
inserting 
‘‘section
4081(a)(2)(A)(i)’’.
(C) Subsection (b) of section 4092 is
amended by striking ‘‘section 4041(c)(4)’’ and
inserting ‘‘section 4041(c)(2)’’.
695
(D) Subsection (g) of section 4261 (as re-
designated by title X) is amended by inserting
‘‘on that flight’’ after ‘‘dedicated’’.
(E) Paragraph (1) of section 1609(h) of
such Act is amended by striking ‘‘paragraph
(3)(A)(i)’’ and inserting ‘‘paragraph (3)(A)’’.
(F) Paragraph (4) of section 1609(h) of
such Act is amended by inserting before the pe-
riod ‘‘or exclusively for the use described in sec-
tion 4092(b) of such Code’’.
(5) 
AMENDMENTS
RELATED
TO
SECTION
1616.—
(A) Subparagraph (A) of section 593(e)(1)
is amended by inserting ‘‘(and, in the case of
an S corporation, the accumulated adjustments
account, as defined in section 1368(e)(1))’’
after ‘‘1951,’’.
(B) Paragraph (7) of section 1374(d) is
amended by adding at the end the following
new sentence: ‘‘For purposes of applying this
section to any amount includible in income by
reason of section 593(e), the preceding sentence
shall be applied without regard to the phrase
‘10-year’.’’.
696
(6) 
AMENDMENTS
RELATED
TO
SECTION
1621.—
(A) 
Subparagraph 
(A) 
of 
section
860L(b)(1) is amended in the text preceding
clause (i) by striking ‘‘after the startup date’’
and inserting ‘‘on or after the startup date’’.
(B) Paragraph (2) of section 860L(d) is
amended by striking ‘‘section 860I(c)(2)’’ and
inserting ‘‘section 860I(b)(2)’’.
(C) 
Subparagraph 
(B) 
of 
section
860L(e)(2) is amended by inserting ‘‘other than
foreclosure property’’ after ‘‘any permitted
asset’’.
(D) 
Subparagraph 
(A) 
of 
section
860L(e)(3) is amended by striking ‘‘if the
FASIT’’ and all that follows and inserting the
following new flush text after clause (ii):
‘‘if the FASIT were treated as a REMIC and
permitted assets (other than cash or cash
equivalents) were treated as qualified mort-
gages.’’.
(E)(i) Paragraph (3) of section 860L(e) is
amended by adding at the end the following
new subparagraph:
697
‘‘(D) INCOME
FROM
DISPOSITIONS
OF
FORMER
HEDGE
ASSETS.—Paragraph (2)(A)
shall not apply to income derived from the dis-
position of—
‘‘(i) an asset which was described in
subsection (c)(1)(D) when first acquired by
the FASIT but on the date of such disposi-
tion was no longer described in subsection
(c)(1)(D)(ii), or
‘‘(ii) a contract right to acquire an
asset described in clause (i).’’.
(ii) 
Subparagraph 
(A) 
of 
section
860L(e)(2) is amended by inserting ‘‘except as
provided in paragraph (3),’’ before ‘‘the re-
ceipt’’.
(g) AMENDMENTS RELATED TO SUBTITLE G.—
(1) EXTENSION OF PERIOD FOR CLAIMING RE-
FUNDS FOR ALCOHOL FUELS.—Notwithstanding sec-
tion 6427(i)(3)(C) of the Internal Revenue Code of
1986, a claim filed under section 6427(f) of such
Code for any period after September 30, 1995, and
before October 1, 1996, shall be treated as timely
filed if filed before the 60th day after the date of the
enactment of this Act.
698
(2) AMENDMENTS
TO
SECTIONS
1703
AND
1704.—Sections 1703(n)(8) and 1704(j)(4)(B) of the
Small Business Job Protection Act of 1996 shall
each be applied as if such sections referred to sec-
tion 1702 instead of section 1602.
(h) AMENDMENTS RELATED TO SUBTITLE H.—
(1) 
AMENDMENTS
RELATED
TO
SECTION
1806.—
(A) Subparagraph (B) of section 529(e)(1)
is amended by striking ‘‘subsection (c)(2)(C)’’
and inserting ‘‘subsection (c)(3)(C)’’.
(B) Subparagraph (C) of section 529(e)(1)
is amended by inserting ‘‘(or agency or instru-
mentality thereof)’’ after ‘‘local government’’.
(C) Paragraph (2) of section 1806(c) of
the Small Business Job Protection Act of 1996
is amended by striking so much of the first sen-
tence as follows subparagraph (B)(ii) and in-
serting the following:
‘‘then such program (as in effect on August 20,
1996) shall be treated as a qualified State tuition
program with respect to contributions (and earnings
allocable thereto) pursuant to contracts entered into
under such program before the first date on which
such program meets such requirements (determined
699
without regard to this paragraph) and the provisions
of such program (as so in effect) shall apply in lieu
of section 529(b) of the Internal Revenue Code of
1986 with respect to such contributions and earn-
ings.’’.
(2) 
AMENDMENTS
RELATED
TO
SECTION
1807.—
(A) Paragraph (2) of section 23(a) is
amended to read as follows:
‘‘(2) YEAR
CREDIT
ALLOWED.—The credit
under paragraph (1) with respect to any expense
shall be allowed—
‘‘(A) in the case of any expense paid or in-
curred before the taxable year in which such
adoption becomes final, for the taxable year fol-
lowing the taxable year during which such ex-
pense is paid or incurred, and
‘‘(B) in the case of an expense paid or in-
curred during or after the taxable year in which
such adoption becomes final, for the taxable
year in which such expense is paid or in-
curred.’’.
(B) Subparagraph (B) of section 23(b)(2)
is amended by striking ‘‘determined—’’ and all
that follows and inserting the following: ‘‘deter-
700
mined without regard to sections 911, 931, and
933.’’.
(C) Paragraph (1) of section 137(b) (relat-
ing to adoption assistance programs) is amend-
ed by striking ‘‘amount excludable from gross
income’’ and inserting ‘‘of the amounts paid or
expenses incurred which may be taken into ac-
count’’.
(D)(i) 
Subparagraph 
(C) 
of 
section
414(n)(3) is amended by inserting ‘‘137,’’ after
‘‘132,’’.
(ii) Paragraph (2) of section 414(t) is
amended by inserting ‘‘137,’’ after ‘‘132,’’.
(iii) Paragraph (1) of section 6039D(d) is
amended by striking ‘‘or 129’’ and inserting
‘‘129, or 137’’.
(i) AMENDMENTS RELATED TO SUBTITLE I.—
(1) AMENDMENT RELATED TO SECTION 1901.—
Subsection (b) of section 6048 is amended in the
heading by striking ‘‘GRANTOR’’ and inserting
‘‘OWNER’’.
(2) 
AMENDMENTS
RELATED
TO
SECTION
1903.—
701
Clauses 
(ii) 
and 
(iii) 
of 
section
679(a)(3)(C) are each amended by inserting ‘‘,
owner,’’ after ‘‘grantor’’.
(3) 
AMENDMENTS
RELATED
TO
SECTION
1907.—
(A) Clause (ii) of section 7701(a)(30)(E)
is amended by striking ‘‘fiduciaries’’ and insert-
ing ‘‘persons’’.
(B) Subsection (b) of section 641 is
amended by adding at the end the following
new sentence: ‘‘For purposes of this subsection,
a foreign trust or foreign estate shall be treated
as a nonresident alien individual who is not
present in the United States at any time.’’.
(4) EFFECTIVE DATE RELATED TO SUBTITLE
I.—The Secretary of the Treasury may by regula-
tions or other administrative guidance provide that
the amendments made by section 1907(a) of the
Small Business Job Protection Act of 1996 shall not
apply to a trust with respect to a reasonable period
beginning on the date of the enactment of such Act,
if—
(A) such trust is in existence on August
20, 1996, and is a United States person for
purposes of the Internal Revenue Code of 1986
702
on such date (determined without regard to
such amendments),
(B) no election is in effect under section
1907(a)(3)(B) of such Act with respect to such
trust,
(C) before the expiration of such reason-
able period, such trust makes the modifications
necessary to be treated as a United States per-
son for purposes of such Code (determined with
regard to such amendments), and
(D) such trust meets such other conditions
as the Secretary may require.
(j) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section
shall take effect as if included in the provisions of
the Small Business Job Protection Act of 1996 to
which they relate.
(2) CERTAIN ADMINISTRATIVE REQUIREMENTS
WITH RESPECT TO CERTAIN PENSION PLANS.—The
amendment made by subsection (d)(2)(D) shall
apply to calendar years beginning after the date of
the enactment of this Act.
703
SEC. 1502. AMENDMENTS RELATED TO HEALTH INSURANCE
PORTABILITY AND ACCOUNTABILITY ACT OF
1996.
(a) AMENDMENTS RELATED TO SECTION 301.—
(1) Paragraph (2) of section 26(b) is amended
by striking ‘‘and’’ at the end of subparagraph (N),
by striking the period at the end of subparagraph
(O) and inserting ‘‘, and’’, and by adding at the end
the following new subparagraph:
‘‘(P) section 220(f)(4) (relating to addi-
tional tax on medical savings account distribu-
tions not used for qualified medical expenses).’’.
(2) Paragraph (3) of section 220(c) is amended
by striking subparagraph (A) and redesignating sub-
paragraphs (B) through (D) as subparagraphs (A)
through (C), respectively.
(3) Subparagraph (C) of section 220(d)(2) is
amended by striking ‘‘an eligible individual’’ and in-
serting ‘‘described in clauses (i) and (ii) of sub-
section (c)(1)(A)’’.
(4) Subsection (a) of section 6693 is amended
by adding at the end the following new sentence:
‘‘This subsection shall not apply to any report which is
an 
information 
return 
described 
in 
section
6724(d)(1)(C)(i) or a payee statement described in section
6724(d)(2)(X).’’.
705
graph (Q) and precedes the last sentence, and in-
serting the following new subparagraphs:
‘‘(R) section 6050R(c) (relating to returns
relating to certain purchases of fish),
‘‘(S) section 6051 (relating to receipts for
employees),
‘‘(T) section 6052(b) (relating to returns
regarding payment of wages in the form of
group-term life insurance),
‘‘(U) section 6053(b) or (c) (relating to re-
ports of tips),
‘‘(V) section 6048(b)(1)(B) (relating to
foreign trust reporting requirements),
‘‘(W) section 4093(c)(4)(B) (relating to
certain purchasers of diesel and aviation fuels),
‘‘(X) section 408(i) (relating to reports
with respect to individual retirement plans) to
any person other than the Secretary with re-
spect to the amount of payments made to such
person, or
‘‘(Y) section 6047(d) (relating to reports
by plan administrators) to any person other
than the Secretary with respect to the amount
of payments made to such person.’’.
706
(B) Subsection (e) of section 6652 is amended
in 
the 
last 
sentence 
by 
striking 
‘‘section
6724(d)(2)(X)’’ 
and 
inserting 
‘‘section
6724(d)(2)(Y)’’.
(e) AMENDMENT
RELATED
TO
SECTION
325.—
Clauses (ii) and (iii) of section 7702B(g)(4)(B) are each
amended by striking ‘‘Secretary’’ and inserting ‘‘appro-
priate State regulatory agency’’.
(f) AMENDMENTS RELATED TO SECTION 501.—
(1) Paragraph (4) of section 264(a) is amended
by striking subparagraph (A) and all that follows
through ‘‘by the taxpayer.’’ and inserting the follow-
ing:
‘‘(A) is or was an officer or employee, or
‘‘(B) is or was financially interested in,
any trade or business carried on (currently or for-
merly) by the taxpayer.’’.
(2) 
The 
last 
sentences 
of 
section
264(d)(2)(B)(ii) are amended to read as follows:
‘‘For purposes of subclause (II), the term
‘applicable period’ means the 12-month pe-
riod beginning on the date the policy is is-
sued (and each successive 12-month period
thereafter) unless the taxpayer elects a
number of months (not greater than 12)
707
other than such 12-month period to be its
applicable period. Such an election shall be
made not later than the 90th day after the
date of the enactment of this sentence and,
if made, shall apply to the taxpayer’s first
taxable year ending on or after October 13,
1995, and all subsequent taxable years un-
less revoked with the consent of the Sec-
retary.’’.
(3) Subparagraph (B) of section 264(d)(4) is
amended by striking ‘‘the employer’’ and inserting
‘‘the taxpayer’’.
(4) Subsection (c) of section 501 of the Health
Insurance Portability and Accountability Act of
1996 is amended by striking paragraph (3).
(5) Paragraph (2) of section 501(d) of such Act
is amended by striking ‘‘no additional premiums’’
and all that follows and inserting the following: ‘‘a
lapse occurring by reason of no additional premiums
being received under the contract after October 13,
1995.’’.
(g) AMENDMENTS RELATED TO SECTION 511.—
(1) Subparagraph (B) of section 877(d)(2) is
amended by striking ‘‘the 10-year period described
in subsection (a)’’ and inserting ‘‘the 10-year period
708
beginning on the date the individual loses United
States citizenship’’.
(2) Subparagraph (D) of section 877(d)(2) is
amended by adding at the end the following new
sentence: ‘‘In the case of any exchange occurring
during such 5 years, any gain recognized under this
subparagraph shall be recognized immediately after
such loss of citizenship.’’.
(3) Paragraph (3) of section 877(d) is amended
by inserting ‘‘and the period applicable under para-
graph (2)’’ after ‘‘subsection (a)’’.
(4) Subparagraph (A) of section 877(d)(4) is
amended—
(A) by inserting ‘‘during the 10-year pe-
riod beginning on the date the individual loses
United States citizenship’’ after ‘‘contributes
property’’ in clause (i),
(B) by inserting ‘‘immediately before such
contribution’’ after ‘‘from such property’’, and
(C) by striking ‘‘during the 10-year period
referred to in subsection (a),’’.
(5) Subparagraph (C) of section 2501(a)(3) is
amended by striking ‘‘decedent’’ and inserting
‘‘donor’’.
709
(6)(A) Clause (i) of section 2107(c)(2)(A) is
amended by striking ‘‘such foreign country in re-
spect of property included in the gross estate’’ and
inserting ‘‘such foreign country’’.
(B) Subparagraph (C) of section 2107(c)(2) is
amended to read as follows:
‘‘(C) PROPORTIONATE
SHARE.—In the
case of property which is included in the gross
estate solely by reason of subsection (b), such
property’s proportionate share is the percentage
which the value of such property bears to the
total value of all property included in the gross
estate solely by reason of subsection (b).’’.
(h) AMENDMENTS RELATED TO SECTION 512.—
(1) Subpart A of part III of subchapter A of
chapter 61 is amended by redesignating the section
6039F added by section 512 of the Health Insur-
ance Portability and Accountability Act of 1996 as
section 6039G and by moving such section 6039G to
immediately after the section 6039F added by sec-
tion 1905 of the Small Business Job Protection Act
of 1996.
(2) The table of sections for subpart A of part
III of subchapter A of chapter 61 is amended by
striking the item relating to the section 6039F relat-
710
ed to information on individuals losing United States
citizenship and inserting after the item relating to
the section 6039F related to notice of large gifts re-
ceived from foreign persons the following new item:
‘‘Sec. 6039G. Information on individuals losing United States citi-
zenship.’’.
(3) Paragraph (1) of section 877(e) is amended
by striking ‘‘6039F’’ and inserting ‘‘6039G’’.
(i) EFFECTIVE DATE.—The amendments made by
this section shall take effect as if included in the provisions
of the Health Insurance Portability and Accountability
Act of 1996 to which such amendments relate.
SEC. 1503. AMENDMENTS RELATED TO TAXPAYER BILL OF
RIGHTS 2.
(a) AMENDMENT RELATED TO SECTION 1311.—Sub-
section (b) of section 4962 is amended by striking ‘‘sub-
chapter A or C’’ and inserting ‘‘subchapter A, C, or D’’.
(b) AMENDMENTS RELATED TO SECTION 1312.—
(1)(A) Paragraph (10) of section 6033(b) is
amended by striking all that precedes subparagraph
(A) and inserting the following:
‘‘(10) the respective amounts (if any) of the
taxes imposed on the organization, or any organiza-
tion manager of the organization, during the taxable
year under any of the following provisions (and the
respective amounts (if any) of reimbursements paid
711
by the organization during the taxable year with re-
spect to taxes imposed on any such organization
manager under any of such provisions):’’.
(B) Subparagraph (C) of section 6033(b)(10) is
amended by adding at the end the following: ‘‘except
to the extent that, by reason of section 4962, the
taxes imposed under such section are not required to
be paid or are credited or refunded,’’.
(2) Paragraph (11) of section 6033(b) is
amended to read as follows:
‘‘(11) the respective amounts (if any) of—
‘‘(A) the taxes imposed with respect to the
organization on any organization manager, or
any disqualified person, during the taxable year
under section 4958 (relating to taxes on private
excess benefit from certain charitable organiza-
tions), and
‘‘(B) reimbursements paid by the organiza-
tion during the taxable year with respect to
taxes imposed under such section,
except to the extent that, by reason of section 4962,
the taxes imposed under such section are not re-
quired to be paid or are credited or refunded,’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect as if included in the provisions
712
of the Taxpayer Bill of Rights 2 to which such amend-
ments relate.
SEC. 1504. MISCELLANEOUS PROVISIONS.
(a) AMENDMENTS RELATED
TO ENERGY POLICY
ACT OF 1992.—
(1) Paragraph (1) of section 263(a) is amended
by striking ‘‘or’’ at the end of subparagraph (F), by
striking the period at the end of subparagraph (G)
and inserting ‘‘; or’’, and by adding at the end the
following new subparagraph:
‘‘(H) expenditures for which a deduction is
allowed under section 179A.’’.
(2) Subparagraph (B) of section 312(k)(3) is
amended—
(A) by striking ‘‘179’’ in the heading and
the first place it appears in the text and insert-
ing ‘‘179 or 179A’’, and
(B) by striking ‘‘179’’ the last place it ap-
pears and inserting ‘‘179 or 179A, as the case
may be’’.
(3) Paragraphs (2)(C) and (3)(C) of section
1245(a) are each amended by inserting ‘‘179A,’’
after ‘‘179,’’.
(4) The amendments made by this subsection
shall take effect as if included in the amendments
713
made by section 1913 of the Energy Policy Act of
1992.
(b) AMENDMENTS RELATED TO URUGUAY ROUND
AGREEMENTS ACT.—
(1) Paragraph (1) of section 6621(a) is amend-
ed in the last sentence by striking ‘‘subsection
(c)(3))’’ and inserting ‘‘subsection (c)(3), applied by
substituting ‘overpayment’ for ‘underpayment’)’’.
(2) Subclause (II) of section 412(m)(5)(E)(ii) is
amended by striking ‘‘clause (i)’’ and inserting ‘‘sub-
clause (I)’’.
(3) Subparagraph (A) of section 767(d)(3) of
the Uruguay Round Agreements Act is amended in
the last sentence by striking ‘‘(except that’’ and all
that follows through ‘‘into account)’’.
(4) The amendments made by this subsection
shall take effect as if included in the sections of the
Uruguay Round Agreements Act to which they re-
late.
(c) AMENDMENT RELATED TO OMNIBUS BUDGET
RECONCILIATION ACT OF 1993.—
(1) Paragraph (6) of section 168(j) (defining
Indian reservation) is amended by adding at the end
the following new flush sentence:
714
‘‘For purposes of the preceding sentence, such sec-
tion 3(d) shall be applied by treating the term
‘former Indian reservations in Oklahoma’ as includ-
ing only lands which are within the jurisdictional
area of an Oklahoma Indian tribe (as determined by
the Secretary of the Interior) and are recognized by
such Secretary as eligible for trust land status under
25 CFR Part 151 (as in effect on the date of the
enactment of this sentence).’’.
(2) The amendment made by paragraph (1)
shall apply as if included in the amendments made
by section 13321 of the Omnibus Budget Reconcili-
ation Act of 1993, except that such amendment shall
not apply—
(A) with respect to property (with an ap-
plicable recovery period under section 168(j) of
the Internal Revenue Code of 1986 of 6 years
or less) held by the taxpayer if the taxpayer
claimed the benefits of section 168(j) of such
Code with respect to such property on a return
filed before March 18, 1997, but only if such
return is the first return of tax filed for the
taxable year in which such property was placed
in service, or