I 
113TH CONGRESS 
1ST SESSION H. R. 3666 
To alleviate the sequestration and to end offshore tax abuses, to preserve 
our national defense and protect American families and businesses from 
devastating cuts, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 5, 2013 
Ms. DELAURO (for herself and Mr. DOGGETT) introduced the following bill; 
which was referred to the Committee on Ways and Means, and in addi-
tion to the Committees on Financial Services and the Budget, for a pe-
riod to be subsequently determined by the Speaker, in each case for con-
sideration of such provisions as fall within the jurisdiction of the com-
mittee concerned 
A BILL 
To alleviate the sequestration and to end offshore tax abuses, 
to preserve our national defense and protect American 
families and businesses from devastating cuts, and for 
other purposes. 
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 
‘‘Sequester Delay and Stop Tax Haven Abuse Act’’. 
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(b) AMENDMENT OF 1986 CODE.—Except as other-
wise expressly provided, whenever in titles II through IV 
of this Act an amendment or repeal is expressed in terms 
of an amendment to, or repeal of, a section or other provi-
sion, the reference shall be considered to be made to a 
section or other provision 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. 
Sec. 2. Findings. 
TITLE I—EXTENSION OF SEQUESTRATION 
Sec. 101. Repeal the 2014 and 2015 sequesters. 
Sec. 102. Modification of discretionary spending caps for fiscal year 2016. 
TITLE II—DETERRING THE USE OF TAX HAVENS FOR TAX 
EVASION 
Sec. 201. Authorizing special measures against foreign jurisdictions, financial 
institutions, and others that significantly impede United States 
tax enforcement. 
Sec. 202. Strengthening the Foreign Account Tax Compliance Act (FATCA). 
Sec. 203. Treatment of foreign corporations managed and controlled in the 
United States as domestic corporations. 
Sec. 204. Reporting United States beneficial owners of foreign owned financial 
accounts. 
Sec. 205. Swap payments made from the United States to persons offshore. 
TITLE III—OTHER MEASURES TO COMBAT TAX HAVEN ABUSES 
Sec. 301. Country-by-country reporting. 
Sec. 302. Penalty for failing to disclose offshore holdings. 
Sec. 303. Deadline for anti-money laundering rule for investment advisers. 
Sec. 304. Anti-money laundering requirements for formation agents. 
Sec. 305. Strengthening John Doe summons proceedings. 
Sec. 306. Improving enforcement of foreign financial account reporting. 
TITLE IV—ENDING CORPORATE OFFSHORE TAX AVOIDANCE 
Sec. 401. Allocation of expenses and taxes on basis of repatriation of foreign 
income. 
Sec. 402. Current taxation of royalties and other income from intangibles re-
ceived from a controlled foreign corporation. 
Sec. 403. Limitations on income shifting through intangible property transfers. 
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Sec. 404. Repeal of check-the-box rules for certain foreign entities and CFC 
look-thru rules. 
Sec. 405. Prohibition on offshore loan abuse. 
SEC. 2. FINDINGS. 
The Congress finds the following: 
(1) Over the last three years, Congress has en-
acted several rounds of spending cuts that are nega-
tively impacting core government programs and serv-
ices including medical research, education, public 
safety, and so much more. These cuts were made 
worse by sequestration, and the impact of sequestra-
tion in 2014 will be worse for the economy, as 
spending cuts will be larger, begin immediately, and 
build on the previous rounds of cuts. 
(2) If sequestration continues into 2014, discre-
tionary spending subject to the Budget Control Act 
caps will be $123 billion or 11 percent lower than 
it was in 2010. 
(3) In October 2013, the International Mone-
tary Fund downwardly revised the GDP growth 
forecast for the United States by 0.2 percent due to 
the expectation that sequestration would remain in 
place through 2014. 
(4) According to the Congressional Budget Of-
fice, repealing the 2014 sequestration cuts would in-
crease real GDP by 0.6 percent and increase em-
ployment by 800,000 jobs. 
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