come, and the foreign base company oil related 
income’’, and 
(B) by adding at the end the following new 
paragraph: 
‘‘(6) FOREIGN BASE COMPANY OIL RELATED IN-
COME NOT TREATED AS ANOTHER KIND OF BASE 
COMPANY INCOME.—Income of a corporation which 
is foreign base company oil related income shall not 
be considered foreign base company income of such 
corporation under paragraph (2) or (3) of subsection 
(a).’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years of foreign corpora-
tions beginning after the date of the enactment of this 
Act, and to taxable years of United States shareholders 
in which or with which such taxable years of foreign cor-
porations end. 
SEC. 107. MODIFICATIONS OF FOREIGN TAX CREDIT RULES 
APPLICABLE TO DUAL CAPACITY TAXPAYERS. 
(a) IN GENERAL.—Section 901 of the Internal Rev-
enue Code of 1986 is amended by redesignating subsection 
(n) as subsection (o) and by inserting after subsection (m) 
the following new subsection: 
‘‘(n) SPECIAL RULES RELATING TO DUAL CAPACITY 
TAXPAYERS.— 
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‘‘(1) GENERAL
RULE.—Notwithstanding any 
other provision of this chapter, any amount paid or 
accrued by a dual capacity taxpayer to a foreign 
country or possession of the United States for any 
period with respect to combined foreign oil and gas 
income (as defined in section 907(b)(1)) shall not be 
considered a tax to the extent such amount exceeds 
the amount (determined in accordance with regula-
tions) which would have been required to be paid if 
the taxpayer were not a dual capacity taxpayer. 
‘‘(2) DUAL
CAPACITY
TAXPAYER.—For pur-
poses of this subsection, the term ‘dual capacity tax-
payer’ means, with respect to any foreign country or 
possession of the United States, a person who— 
‘‘(A) is subject to a levy of such country or 
possession, and 
‘‘(B) receives (or will receive) directly or 
indirectly a specific economic benefit (as deter-
mined in accordance with regulations) from 
such country or possession.’’. 
(b) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendments made by 
this section shall apply to taxes paid or accrued in 
taxable years beginning after December 31, 2020. 
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(2) 
CONTRARY
TREATY
OBLIGATIONS 
UPHELD.—The amendments made by this section 
shall not apply to the extent contrary to any treaty 
obligation of the United States. 
SEC. 108. TREATMENT OF INTANGIBLES TRANSFERRED TO 
PARTNERSHIPS. 
(a) REPEAL
OF CERTAIN REGULATORY AUTHOR-
ITY.—Section 367(d) is amended by striking paragraph 
(3). 
(b) EXCEPTION TO RULES PROVIDING NONRECOGNI-
TION OF GAIN.—Section 721(d) is amended to read as fol-
lows: 
‘‘(d) CERTAIN TRANSFERS OF INTANGIBLE PROP-
ERTY TO PARTNERSHIPS.— 
‘‘(1) IN GENERAL.—Except as provided in regu-
lations prescribed by the Secretary, if a United 
States person transfers any intangible property with-
in the meaning of section 367(d)(4) to a specified 
partnership in an exchange described in this section, 
subsection (a) shall not apply to the transfer of such 
property and the provisions of section 367(d)(2) 
shall apply to such transfer. 
‘‘(2) SPECIFIED PARTNERSHIP.—For purposes 
of this subsection, the term ‘specified partnership’ 
means any partnership if any item of income or gain 
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attributable to intangible property is taken into ac-
count in determining any distributive share of such 
partnership to a person that is not a United States 
person.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to transfers after the date of the 
enactment of this Act, in taxable years ending after such 
date. 
TITLE 
II—ADDITIONAL 
MEAS-
URES TO COMBAT TAX EVA-
SION 
SEC. 201. AUTHORIZING SPECIAL MEASURES AGAINST FOR-
EIGN JURISDICTIONS, FINANCIAL INSTITU-
TIONS, AND OTHERS THAT SIGNIFICANTLY 
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: ‘‘Special measures for juris-
dictions, financial institutions, or inter-
national transactions that are of primary 
money laundering concern or signifi-
cantly impede United States tax enforce-
ment’’; 
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(2) in subsection (a), by striking the subsection 
heading and inserting the following: ‘‘SPECIAL 
MEASURES TO COUNTER MONEY LAUNDERING AND 
EFFORTS
TO
SIGNIFICANTLY
IMPEDE
UNITED 
STATES TAX ENFORCEMENT’’; 
(3) in subsection (c)— 
(A) by striking the subsection heading and 
inserting the following: ‘‘CONSULTATIONS AND 
INFORMATION TO BE CONSIDERED IN FINDING 
JURISDICTIONS, INSTITUTIONS, TYPES OF AC-
COUNTS, OR TRANSACTIONS TO BE OF PRI-
MARY MONEY LAUNDERING CONCERN OR TO 
BE SIGNIFICANTLY IMPEDING UNITED STATES 
TAX ENFORCEMENT’’; and 
(B) in paragraph (2), by adding at the end 
the following: 
‘‘(C) OTHER CONSIDERATIONS.—The fact 
that a jurisdiction or financial institution is co-
operating with the United States on imple-
menting the requirements specified in chapter 4 
of the Internal Revenue Code of 1986 may be 
favorably considered in evaluating whether such 
jurisdiction or financial institution is signifi-
cantly impeding United States tax enforce-
ment.’’; 
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(4) in subsection (a)(1), by inserting ‘‘or is sig-
nificantly impeding United States tax enforcement’’ 
after ‘‘primary money laundering concern’’; 
(5) in subsection (a)(4)— 
(A) in subparagraph (A)— 
(i) by inserting ‘‘in matters involving 
money laundering,’’ before ‘‘shall consult’’; 
and 
(ii) by striking ‘‘and’’ at the end; 
(B) by redesignating subparagraph (B) as 
subparagraph (C); and 
(C) by inserting after subparagraph (A) 
the following: 
‘‘(B) in matters involving United States 
tax enforcement, shall consult with the Commis-
sioner of Internal Revenue, the Secretary of 
State, the Attorney General of the United 
States, and in the sole discretion of the Sec-
retary, such other agencies and interested par-
ties as the Secretary may find to be appro-
priate; and’’; 
(6) in each of paragraphs (1)(A), (2), (3), and 
(4) of subsection (b), by inserting ‘‘or to be signifi-
cantly impeding United States tax enforcement’’ 
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after ‘‘primary money laundering concern’’ each 
place that term appears; 
(7) in subsection (b), by striking paragraph (5) 
and inserting the following: 
‘‘(5) PROHIBITIONS OR CONDITIONS ON OPEN-
ING OR MAINTAINING CERTAIN CORRESPONDENT OR 
PAYABLE-THROUGH
ACCOUNTS
OR
AUTHORIZING 
CERTAIN PAYMENT CARDS.—If the Secretary finds a 
jurisdiction outside of the United States, 1 or more 
financial institutions operating outside of the United 
States, or 1 or more classes of transactions within 
or involving a jurisdiction outside of the United 
States to be of primary money laundering concern or 
to be significantly impeding United States tax en-
forcement, the Secretary, in consultation with the 
Secretary of State, the Attorney General of the 
United States, and the Chairman of the Board of 
Governors of the Federal Reserve System, may pro-
hibit, or impose conditions upon— 
‘‘(A) the opening or maintaining in the 
United States of a correspondent account or 
payable-through account by any domestic finan-
cial institution or domestic financial agency for 
or on behalf of a foreign banking institution, if 
such correspondent account or payable-through 
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account involves any such jurisdiction or insti-
tution, or if any such transaction may be con-
ducted through such correspondent account or 
payable-through account; or 
‘‘(B) the authorization, approval, or use in 
the United States of a credit card, charge card, 
debit card, or similar credit or debit financial 
instrument by any domestic financial institu-
tion, domestic financial agency, or credit card 
company or association for or on behalf of a 
foreign banking institution, if such credit card, 
charge card, debit card, or similar credit or 
debit financial instrument involves any such ju-
risdiction or institution, or if any such trans-
action may be conducted through such credit 
card, charge card, debit card, or similar credit 
or debit financial instrument.’’; 
(8) in subsection (c)(1), by inserting ‘‘or is sig-
nificantly impeding United States tax enforcement’’ 
after ‘‘primary money laundering concern’’; 
(9) in subsection (c)(2)(A)— 
(A) in clause (ii), by striking ‘‘bank secrecy 
or special regulatory advantages’’ and inserting 
‘‘bank, tax, corporate, trust, or financial secrecy 
or regulatory advantages’’; 
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(B) in clause (iii), by striking ‘‘supervisory 
and counter-money’’ and inserting ‘‘supervisory, 
international tax enforcement, and counter- 
money’’; 
(C) in clause (v), by striking ‘‘banking or 
secrecy’’ and inserting ‘‘banking, tax, or se-
crecy’’; and 
(D) in clause (vi), by inserting ‘‘, tax trea-
ty, or tax information exchange agreement’’ 
after ‘‘treaty’’; 
(10) in subsection (c)(2)(B)— 
(A) in clause (i), by inserting ‘‘or tax eva-
sion’’ after ‘‘money laundering’’; and 
(B) in clause (iii), by inserting ‘‘, tax eva-
sion,’’ after ‘‘money laundering’’; and 
(11) in subsection (d), by inserting ‘‘involving 
money laundering, and shall notify, in writing, the 
Committee on Finance of the Senate and the Com-
mittee on Ways and Means of the House of Rep-
resentatives of any such action involving United 
States tax enforcement’’ after ‘‘such action’’. 
(b) CLERICAL AMENDMENT.—The table of contents 
for chapter 53 of title 31, United States Code, is amended 
by striking the item relating to section 5318A and insert-
ing the following: 
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‘‘5318A. Special measures for jurisdictions, financial institutions, or inter-
national transactions that are of primary money laundering 
concern or significantly impede United States tax enforce-
ment.’’. 
SEC. 202. 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) in paragraph (2)(A), by inserting ‘‘or trans-
action’’ after ‘‘any depository’’, and 
(2) in paragraph (5)(C), by striking ‘‘or any in-
terest’’ and all that follows 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 section 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 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 there-
of from an entity, including a trust, corporation, limited 
liability company, partnership, or foundation, that holds 
an account, or in any other manner has assets, in a non- 
FATCA institution, exercised control over such entity. The 
presumption of control created by this subsection shall not 
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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 directly or indirectly from an ac-
count or from an entity that holds an account, or in any 
other manner has assets, in a non-FATCA institution, 
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 directly 
or indirectly to an account, or entity that holds an ac-
count, 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. 
‘‘(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 
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‘‘(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’’. 
(2) DEFINITION OF NON-FATCA INSTITUTION.— 
Section 7701(a) is amended by adding at the end 
the following new paragraph: 
‘‘(51) NON-FATCA
INSTITUTION.—The term 
‘non-FATCA institution’ means any foreign financial 
institution that does not meet the reporting require-
ments of section 1471(b).’’. 
(3) PRESUMPTIONS FOR SECURITIES LAW PUR-
POSES.—Section 21 of the Securities Exchange Act 
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of 1934 (15 U.S.C. 78u) is amended by adding at 
the end the following new subsection: 
‘‘(j) PRESUMPTIONS PERTAINING TO CONTROL AND 
BENEFICIAL OWNERSHIP.— 
‘‘(1) CONTROL.—For purposes of any civil judi-
cial or administrative proceeding under this title, 
there shall be a rebuttable presumption that a 
United States person 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, including 
a trust, corporation, limited liability company, part-
nership, or foundation, that holds an account, or in 
any other manner has assets, in a non-FATCA insti-
tution (as defined in section 7701(a)(51) of the In-
ternal Revenue Code of 1986), exercised control over 
such entity. The presumption of control created by 
this paragraph shall not be applied to prevent the 
Commission from determining or arguing the ab-
sence of control. 
‘‘(2) BENEFICIAL OWNERSHIP.—For purposes 
of any civil judicial or administrative proceeding 
under this title, there shall be a rebuttable presump-
tion that securities that are nominally owned by an 
entity, including a trust, corporation, limited liability 
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company, partnership, or foundation, and that are 
held in a non-FATCA institution (as so defined), are 
beneficially owned by any United States person who 
directly or indirectly exercised control over such enti-
ty. The presumption of beneficial ownership created 
by this paragraph shall not be applied to prevent the 
Commission from determining or arguing the ab-
sence of beneficial ownership.’’. 
(4) PRESUMPTION FOR REPORTING PURPOSES 
RELATING TO FOREIGN FINANCIAL ACCOUNTS.—Sec-
tion 5314 of title 31, United States Code, is amend-
ed by adding at the end the following new sub-
section: 
‘‘(d) REBUTTABLE PRESUMPTION.—For purposes of 
this section, there shall be a rebuttable presumption that 
any account with a non-FATCA institution (as defined in 
section 7701(a)(51) of the Internal Revenue Code of 
1986) contains funds in an amount that is at least suffi-
cient to require a report prescribed by regulations under 
this section.’’. 
(5) REGULATORY AUTHORITY.—Not later than 
180 days after the date of enactment of this Act, the 
Secretary of the Treasury and the Chairman of the 
Securities and Exchange Commission shall each 
adopt regulations or other guidance necessary to im-
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plement the amendments made by this subsection. 
The Secretary and the Chairman may, by regulation 
or guidance, provide that the presumption of control 
shall not extend to particular classes of transactions, 
such as corporate reorganizations or transactions 
below a specified dollar threshold, if either deter-
mines that applying such amendments to such trans-
actions is not necessary to carry out the purposes of 
such amendments. 
(h) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date which is 180 days 
after the date of enactment of this Act, whether or not 
regulations are issued under subsection (g)(5). 
SEC. 203. REPORTING UNITED STATES BENEFICIAL OWN-
ERS OF FOREIGN OWNED FINANCIAL AC-
COUNTS. 
(a) IN GENERAL.—Subpart B of part III of sub-
chapter A of chapter 61 is amended by inserting after sec-
tion 6045B the following new sections: 
‘‘SEC. 6045C. RETURNS REGARDING UNITED STATES BENE-
FICIAL OWNERS OF FINANCIAL ACCOUNTS 
LOCATED IN THE UNITED STATES AND HELD 
IN THE NAME OF A FOREIGN ENTITY. 
‘‘(a) REQUIREMENT OF RETURN.—If— 
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