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(b) DEFINITIONS AND RULES.—For purposes of this
section—
(1) APPLICABLE PENALTY.—The term ‘‘applica-
ble penalty’’ means any penalty, addition to tax, or
fine imposed under chapter 68 of the Internal Rev-
enue Code of 1986.
(2) FEES AND EXPENSES.—The Secretary of the
Treasury may retain and use an amount not in ex-
cess of 25 percent of all additional interest, penalties,
additions to tax, and fines collected under this section
to be used for enforcement and collection activities of
the Internal Revenue Service. The Secretary shall
keep adequate records regarding amounts so retained
and used. The amount credited as paid by any tax-
payer shall be determined without regard to this
paragraph.
(c) REPORT BY SECRETARY.—The Secretary shall each
year conduct a study and report to Congress on the imple-
mentation of this section during the preceding year, includ-
ing statistics on the number of taxpayers affected by such
implementation and the amount of interest and applicable
penalties asserted, waived, and assessed during such pre-
ceding year.
(d) EFFECTIVE DATE.—The provisions of this section
shall apply to interest, penalties, additions to tax, and fines
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with respect to any taxable year if, as of the date of the
enactment of this Act, the assessment of any tax, penalty,
or interest with respect to such taxable year is not prevented
by the operation of any law or rule of law.
SEC. 5505. MODIFICATION OF INTERACTION BETWEEN SUB-
PART F AND PASSIVE FOREIGN INVESTMENT
COMPANY RULES.
(a) LIMITATION ON EXCEPTION FROM PFIC RULES
FOR UNITED STATES SHAREHOLDERS OF CONTROLLED
FOREIGN
CORPORATIONS.—Paragraph (2) of section
1297(e) (relating to passive foreign investment company)
is amended by adding at the end the following flush sen-
tence:
‘‘Such term shall not include any period if the earn-
ing of subpart F income by such corporation during
such period would result in only a remote likelihood
of an inclusion in gross income under section
951(a)(1)(A)(i).’’.
(b) EFFECTIVE DATE.—The amendment made by this
section shall apply to taxable years of controlled foreign cor-
porations beginning after March 2, 2005, and to taxable
years of United States shareholders with or within which
such taxable years of controlled foreign corporations end.
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SEC. 5506. DECLARATION BY CHIEF EXECUTIVE OFFICER
RELATING TO FEDERAL ANNUAL CORPORATE
INCOME TAX RETURN.
(a) IN GENERAL.—The Federal annual tax return of
a corporation with respect to income shall also include a
declaration signed by the chief executive officer of such cor-
poration (or other such officer of the corporation as the Sec-
retary of the Treasury may designate if the corporation does
not have a chief executive officer), under penalties of per-
jury, that the corporation has in place processes and proce-
dures that ensure that such return complies with the Inter-
nal Revenue Code of 1986 and that the chief executive officer
was provided reasonable assurance of the accuracy of all
material aspects of such return. The preceding sentence
shall not apply to any return of a regulated investment
company (within the meaning of section 851 of such Code).
(b) EFFECTIVE DATE.—This section shall apply to
Federal annual tax returns for taxable years ending after
the date of the enactment of this Act.
SEC. 5507. TREASURY REGULATIONS ON FOREIGN TAX
CREDIT.
(a) IN GENERAL.—Section 901 (relating to taxes of
foreign countries and of possessions of United States) is
amended by redesignating subsection (m) as subsection (n)
and by inserting after subsection (l) the following new sub-
section:
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‘‘(m) REGULATIONS.—The Secretary may prescribe
regulations disallowing a credit under subsection (a) for all
or a portion of any foreign tax, or allocating a foreign tax
among 2 or more persons, in cases where the foreign tax
is imposed on any person in respect of income of another
person or in other cases involving the inappropriate separa-
tion of the foreign tax from the related foreign income.’’.
(b) EFFECTIVE DATE.—The amendments made by this
section shall apply to transactions entered into after the
date of the enactment of this Act.
SEC. 5508. WHISTLEBLOWER REFORMS.
(a) IN GENERAL.—Section 7623 (relating to expenses
of detection of underpayments and fraud, etc.) is
amended—
(1) by striking ‘‘The Secretary’’ and inserting
‘‘(a) IN GENERAL.—The Secretary’’,
(2) by striking ‘‘and’’ at the end of paragraph
(1) and inserting ‘‘or’’,
(3) by striking ‘‘(other than interest)’’, and
(4) by adding at the end the following new sub-
sections:
‘‘(b) AWARDS TO WHISTLEBLOWERS.—
‘‘(1) IN
GENERAL.—If the Secretary proceeds
with any administrative or judicial action described
in subsection (a) based on information brought to the
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Secretary’s attention by an individual, such indi-
vidual shall, subject to paragraph (2), receive as an
award at least 15 percent but not more than 30 per-
cent of the collected proceeds (including penalties, in-
terest, additions to tax, and additional amounts) re-
sulting from the action (including any related ac-
tions) or from any settlement in response to such ac-
tion. The determination of the amount of such award
by the Whistleblower Office shall depend upon the ex-
tent to which the individual substantially contributed
to such action.
‘‘(2) AWARD
IN
CASE
OF
LESS
SUBSTANTIAL
CONTRIBUTION.—
‘‘(A) IN GENERAL.—In the event the action
described in paragraph (1) is one which the
Whistleblower Office determines to be based prin-
cipally on disclosures of specific allegations
(other than information provided by the indi-
vidual described in paragraph (1)) resulting
from a judicial or administrative hearing, from
a governmental report, hearing, audit, or inves-
tigation, or from the news media, the Whistle-
blower Office may award such sums as it con-
siders appropriate, but in no case more than 10
percent of the collected proceeds (including pen-
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alties, interest, additions to tax, and additional
amounts) resulting from the action (including
any related actions) or from any settlement in
response to such action, taking into account the
significance of the individual’s information and
the role of such individual and any legal rep-
resentative of such individual in contributing to
such action.
‘‘(B) 
NONAPPLICATION
OF
PARAGRAPH
WHERE INDIVIDUAL IS ORIGINAL SOURCE OF IN-
FORMATION.—Subparagraph (A) shall not apply
if the information resulting in the initiation of
the action described in paragraph (1) was origi-
nally provided by the individual described in
paragraph (1).
‘‘(3) REDUCTION IN OR DENIAL OF AWARD.—If
the Whistleblower Office determines that the claim for
an award under paragraph (1) or (2) is brought by
an individual who planned and initiated the actions
that led to the underpayment of tax or actions de-
scribed in subsection (a)(2), then the Whistleblower
Office may appropriately reduce such award. If such
individual is convicted of criminal conduct arising
from the role described in the preceding sentence, the
Whistleblower Office shall deny any award.
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‘‘(4) APPEAL OF AWARD DETERMINATION.—Any
determination regarding an award under paragraph
(1), (2), or (3) shall be subject to the filing by the in-
dividual described in such paragraph of a petition for
review with the Tax Court under rules similar to the
rules under section 7463 (without regard to the
amount in dispute) and such review shall be subject
to the rules under section 7461(b)(1).
‘‘(5) APPLICATION OF THIS SUBSECTION.—This
subsection shall apply with respect to any action—
‘‘(A) against any taxpayer, but in the case
of any individual, only if such individual’s gross
income exceeds $200,000 for any taxable year
subject to such action, and
‘‘(B) if the tax, penalties, interest, additions
to tax, and additional amounts in dispute exceed
$20,000.
‘‘(6) ADDITIONAL RULES.—
‘‘(A) NO CONTRACT NECESSARY.—No con-
tract with the Internal Revenue Service is nec-
essary for any individual to receive an award
under this subsection.
‘‘(B) REPRESENTATION.—Any individual
described in paragraph (1) or (2) may be rep-
resented by counsel.
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‘‘(C) AWARD NOT SUBJECT TO INDIVIDUAL
ALTERNATIVE MINIMUM TAX.—No award received
under this subsection shall be included in gross
income for purposes of determining alternative
minimum taxable income.
‘‘(c) WHISTLEBLOWER OFFICE.—
‘‘(1) IN GENERAL.—There is established in the
Internal Revenue Service an office to be known as the
‘Whistleblower Office’ which—
‘‘(A) shall at all times operate at the direc-
tion of the Commissioner and coordinate and
consult with other divisions in the Internal Rev-
enue Service as directed by the Commissioner,
‘‘(B) shall analyze information received
from any individual described in subsection (b)
and either investigate the matter itself or assign
it to the appropriate Internal Revenue Service
office,
‘‘(C) shall monitor any action taken with
respect to such matter,
‘‘(D) shall inform such individual that it
has accepted the individual’s information for
further review,
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‘‘(E) may require such individual and any
legal representative of such individual to not dis-
close any information so provided,
‘‘(F) in its sole discretion, may ask for ad-
ditional assistance from such individual or any
legal representative of such individual, and
‘‘(G) shall determine the amount to be
awarded to such individual under subsection (b).
‘‘(2) FUNDING FOR OFFICE.—There is authorized
to be appropriated $10,000,000 for each fiscal year
for the Whistleblower Office. These funds shall be used
to maintain the Whistleblower Office and also to re-
imburse other Internal Revenue Service offices for re-
lated costs, such as costs of investigation and collec-
tion.
‘‘(3) REQUEST FOR ASSISTANCE.—
‘‘(A) IN
GENERAL.—Any assistance re-
quested under paragraph (1)(F) shall be under
the direction and control of the Whistleblower Of-
fice or the office assigned to investigate the mat-
ter under subparagraph (A). To the extent the
disclosure of any returns or return information
to the individual or legal representative is re-
quired for the performance of such assistance,
such disclosure shall be pursuant to a contract
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entered into between the Secretary and the re-
cipients of such disclosure subject to section
6103(n). No individual or legal representative
whose assistance is so requested may by reason
of such request represent himself or herself as an
employee of the Federal Government.
‘‘(B) FUNDING OF ASSISTANCE.—From the
amounts available for expenditure under sub-
section (b), the Whistleblower Office may, with
the agreement of the individual described in sub-
section (b), reimburse the costs incurred by any
legal representative of such individual in pro-
viding assistance described in subparagraph (A).
‘‘(d) REPORT BY SECRETARY.—The Secretary shall
each year conduct a study and report to Congress on the
use of this section, including—
‘‘(1) an analysis of the use of this section during
the preceding year and the results of such use, and
‘‘(2) any legislative or administrative rec-
ommendations regarding the provisions of this section
and its application.’’.
(b) EFFECTIVE DATE.—The amendments made by this
section shall apply to information provided on or after the
date of the enactment of this Act.
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SEC. 5509. DENIAL OF DEDUCTION FOR CERTAIN FINES,
PENALTIES, AND OTHER AMOUNTS.
(a) IN GENERAL.—Subsection (f) of section 162 (relat-
ing to trade or business expenses) is amended to read as
follows:
‘‘(f) FINES, PENALTIES, AND OTHER AMOUNTS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), no deduction otherwise allowable shall be
allowed under this chapter for any amount paid or
incurred (whether by suit, agreement, or otherwise)
to, or at the direction of, a government or entity de-
scribed in paragraph (4) in relation to the violation
of any law or the investigation or inquiry by such
government or entity into the potential violation of
any law.
‘‘(2) EXCEPTION
FOR
AMOUNTS
CONSTITUTING
RESTITUTION.—Paragraph (1) shall not apply to any
amount which—
‘‘(A) the taxpayer establishes constitutes res-
titution (including remediation of property) for
damage or harm caused by or which may be
caused by the violation of any law or the poten-
tial violation of any law, and
‘‘(B) is identified as restitution in the court
order or settlement agreement.
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Identification pursuant to subparagraph (B) alone
shall not satisfy the requirement under subparagraph
(A). This paragraph shall not apply to any amount
paid or incurred as reimbursement to the government
or entity for the costs of any investigation or litiga-
tion.
‘‘(3) EXCEPTION
FOR
AMOUNTS
PAID
OR
IN-
CURRED
AS
THE
RESULT
OF
CERTAIN
COURT
OR-
DERS.—Paragraph (1) shall not apply to any
amount paid or incurred by order of a court in a suit
in which no government or entity described in para-
graph (4) is a party.
‘‘(4) CERTAIN NONGOVERNMENTAL REGULATORY
ENTITIES.—An entity is described in this paragraph
if it is—
‘‘(A) a nongovernmental entity which exer-
cises self-regulatory powers (including imposing
sanctions) in connection with a qualified board
or exchange (as defined in section 1256(g)(7)), or
‘‘(B) to the extent provided in regulations,
a nongovernmental entity which exercises self-
regulatory powers (including imposing sanc-
tions) as part of performing an essential govern-
mental function.
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‘‘(5) EXCEPTION FOR TAXES DUE.—Paragraph
(1) shall not apply to any amount paid or incurred
as taxes due.’’.
(b) EFFECTIVE DATE.—The amendment made by this
section shall apply to amounts paid or incurred on or after
the date of the enactment of this Act, except that such
amendment shall not apply to amounts paid or incurred
under any binding order or agreement entered into before
such date. Such exception shall not apply to an order or
agreement requiring court approval unless the approval
was obtained before such date.
SEC. 5510. FREEZE OF INTEREST SUSPENSION RULES WITH
RESPECT TO LISTED TRANSACTIONS.
(a) IN GENERAL.—Paragraph (2) of section 903(d) of
the American Jobs Creation Act of 2005 is amended to read
as follows:
‘‘(2) EXCEPTION FOR REPORTABLE OR LISTED
TRANSACTIONS.—
‘‘(A) IN GENERAL.—The amendments made
by subsection (c) shall apply with respect to in-
terest accruing after October 3, 2004.
‘‘(B) SPECIAL RULE FOR CERTAIN LISTED
TRANSACTIONS.—
‘‘(i) IN GENERAL.—Except as provided
in clause (ii) or (iii), in the case of any
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listed transaction, the amendments made by
subsection (c) shall also apply with respect
to interest accruing on or before October 3,
2004.
‘‘(ii) PARTICIPANTS
IN
SETTLEMENT
INITIATIVES.—Clause (i) shall not apply to
a listed transaction if, as of May 9, 2005—
‘‘(I) the taxpayer is participating
in a published settlement initiative
which is offered by the Secretary of the
Treasury or his delegate to a group of
similarly situated taxpayers claiming
benefits from the listed transaction, or
‘‘(II) the taxpayer has entered
into a settlement agreement pursuant
to such an initiative with respect to
the tax liability arising in connection
with the listed transaction.
Subclause (I) shall not apply to the tax-
payer if, after May 9, 2005, the taxpayer
withdraws from, or terminates, participa-
tion in the initiative or the Secretary or his
delegate determines that a settlement agree-
ment will not be reached pursuant to the
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initiative within a reasonable period of
time.
‘‘(iii) CLOSED TRANSACTIONS.—Clause
(i) shall not apply to a listed transaction if,
as of May 9, 2005—
‘‘(I) the assessment of all Federal
income taxes for the taxable year in
which the tax liability to which the in-
terest relates arose is prevented by the
operation of any law or rule of law, or
‘‘(II) a closing agreement under
section 7121 has been entered into with
respect to the tax liability arising in
connection 
with 
the 
listed 
trans-
action.’’.
(b) EFFECTIVE DATE.—The amendment made by this
section shall take effect as if included in the provisions of
the American Jobs Creation Act of 2004 to which it relates.
SEC. 5511. MODIFICATIONS OF EFFECTIVE DATES OF LEAS-
ING PROVISIONS OF THE AMERICAN JOBS
CREATION ACT OF 2004.
(a) REPEAL OF EXCEPTION FOR QUALIFIED TRANS-
PORTATION PROPERTY.—Section 849(b) of the American
Jobs Creation Act of 2004 is amended by striking para-
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graphs (1) and (2) and by redesignating paragraphs (3)
and (4) as paragraphs (1) and (2).
(b) EFFECTIVE DATE.—The amendments made by this
section shall take effect as if included in the enactment of
the American Jobs Creation Act of 2004.
SEC. 5512. IMPOSITION OF MARK-TO-MARKET TAX ON INDI-
VIDUALS WHO EXPATRIATE.
(a) IN GENERAL.—Subpart A of part II of subchapter
N of chapter 1 is amended by inserting after section 877
the following new section:
‘‘SEC. 877A. TAX RESPONSIBILITIES OF EXPATRIATION.
‘‘(a) 
GENERAL
RULES.—For 
purposes 
of 
this
subtitle—
‘‘(1) MARK TO MARKET.—Except as provided in
subsections (d) and (f), all property of a covered expa-
triate to whom this section applies shall be treated as
sold on the day before the expatriation date for its
fair market value.
‘‘(2) RECOGNITION OF GAIN OR LOSS.—In the
case of any sale under paragraph (1)—
‘‘(A) notwithstanding any other provision of
this title, any gain arising from such sale shall
be taken into account for the taxable year of the
sale, and
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‘‘(B) any loss arising from such sale shall
be taken into account for the taxable year of the
sale to the extent otherwise provided by this title,
except that section 1091 shall not apply to any
such loss.
Proper adjustment shall be made in the amount of
any gain or loss subsequently realized for gain or loss
taken into account under the preceding sentence.
‘‘(3) EXCLUSION FOR CERTAIN GAIN.—
‘‘(A) IN GENERAL.—The amount which, but
for this paragraph, would be includible in the
gross income of any individual by reason of this
section shall be reduced (but not below zero) by
$600,000. For purposes of this paragraph, allo-
cable expatriation gain taken into account under
subsection (f)(2) shall be treated in the same
manner as an amount required to be includible
in gross income.
‘‘(B) COST-OF-LIVING ADJUSTMENT.—
‘‘(i) IN GENERAL.—In the case of an
expatriation date occurring in any calendar
year after 2005, the $600,000 amount under
subparagraph (A) shall be increased by an
amount equal to—
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‘‘(I) such dollar amount, multi-
plied by
‘‘(II) the cost-of-living adjustment
determined under section 1(f)(3) for
such calendar year, determined by sub-
stituting ‘calendar year 2004’ for ‘cal-
endar year 1992’ in subparagraph (B)
thereof.
‘‘(ii) 
ROUNDING
RULES.—If 
any
amount after adjustment under clause (i) is
not a multiple of $1,000, such amount shall
be rounded to the next lower multiple of
$1,000.
‘‘(4) ELECTION TO CONTINUE TO BE TAXED AS
UNITED STATES CITIZEN.—
‘‘(A) IN GENERAL.—If a covered expatriate
elects the application of this paragraph—
‘‘(i) this section (other than this para-
graph and subsection (i)) shall not apply to
the expatriate, but
‘‘(ii) in the case of property to which
this section would apply but for such elec-
tion, the expatriate shall be subject to tax
under this title in the same manner as if
the individual were a United States citizen.
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‘‘(B) REQUIREMENTS.—Subparagraph (A)
shall not apply to an individual unless the
individual—
‘‘(i) provides security for payment of
tax in such form and manner, and in such
amount, as the Secretary may require,
‘‘(ii) consents to the waiver of any
right of the individual under any treaty of
the United States which would preclude as-
sessment or collection of any tax which may
be imposed by reason of this paragraph,
and
‘‘(iii) complies with such other require-
ments as the Secretary may prescribe.
‘‘(C) ELECTION.—An election under sub-
paragraph (A) shall apply to all property to
which this section would apply but for the elec-
tion and, once made, shall be irrevocable. Such
election shall also apply to property the basis of
which is determined in whole or in part by ref-
erence to the property with respect to which the
election was made.
‘‘(b) ELECTION TO DEFER TAX.—
‘‘(1) IN GENERAL.—If the taxpayer elects the ap-
plication of this subsection with respect to any prop-
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erty treated as sold by reason of subsection (a), the
payment of the additional tax attributable to such
property shall be postponed until the due date of the
return for the taxable year in which such property is
disposed of (or, in the case of property disposed of in
a transaction in which gain is not recognized in
whole or in part, until such other date as the Sec-
retary may prescribe).
‘‘(2) DETERMINATION OF TAX WITH RESPECT TO
PROPERTY.—For purposes of paragraph (1), the addi-
tional tax attributable to any property is an amount
which bears the same ratio to the additional tax im-
posed by this chapter for the taxable year solely by
reason of subsection (a) as the gain taken into ac-
count under subsection (a) with respect to such prop-
erty bears to the total gain taken into account under
subsection (a) with respect to all property to which
subsection (a) applies.
‘‘(3) TERMINATION OF POSTPONEMENT.—No tax
may be postponed under this subsection later than the
due date for the return of tax imposed by this chapter
for the taxable year which includes the date of death
of the expatriate (or, if earlier, the time that the secu-
rity provided with respect to the property fails to
meet the requirements of paragraph (4), unless the
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taxpayer corrects such failure within the time speci-
fied by the Secretary).
‘‘(4) SECURITY.—
‘‘(A) IN
GENERAL.—No election may be
made under paragraph (1) with respect to any
property unless adequate security is provided to
the Secretary with respect to such property.
‘‘(B) ADEQUATE SECURITY.—For purposes
of subparagraph (A), security with respect to
any property shall be treated as adequate secu-
rity if—
‘‘(i) it is a bond in an amount equal
to the deferred tax amount under paragraph
(2) for the property, or
‘‘(ii) the taxpayer otherwise establishes
to the satisfaction of the Secretary that the
security is adequate.
‘‘(5) WAIVER OF CERTAIN RIGHTS.—No election
may be made under paragraph (1) unless the tax-
payer consents to the waiver of any right under any
treaty of the United States which would preclude as-
sessment or collection of any tax imposed by reason
of this section.
‘‘(6) ELECTIONS.—An election under paragraph
(1) shall only apply to property described in the elec-
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tion and, once made, is irrevocable. An election may
be made under paragraph (1) with respect to an in-
terest in a trust with respect to which gain is re-
quired to be recognized under subsection (f)(1).
‘‘(7) INTEREST.—For purposes of section 6601—
‘‘(A) the last date for the payment of tax
shall be determined without regard to the election
under this subsection, and
‘‘(B) section 6621(a)(2) shall be applied by
substituting ‘5 percentage points’ for ‘3 percent-
age points’ in subparagraph (B) thereof.
‘‘(c) COVERED EXPATRIATE.—For purposes of this
section—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the term ‘covered expatriate’ means an ex-
patriate.
‘‘(2) EXCEPTIONS.—An individual shall not be
treated as a covered expatriate if—
‘‘(A) the individual—
‘‘(i) became at birth a citizen of the
United States and a citizen of another
country and, as of the expatriation date,
continues to be a citizen of, and is taxed as
a resident of, such other country, and
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‘‘(ii) has not been a resident of the
United States (as defined in section
7701(b)(1)(A)(ii)) during the 5 taxable
years ending with the taxable year during
which the expatriation date occurs, or
‘‘(B)(i) the individual’s relinquishment of
United States citizenship occurs before such indi-
vidual attains age 181⁄2, and
‘‘(ii) the individual has been a resident of
the United States (as so defined) for not more
than 5 taxable years before the date of relin-
quishment.
‘‘(d) EXEMPT PROPERTY; SPECIAL RULES FOR PEN-
SION PLANS.—
‘‘(1) EXEMPT PROPERTY.—This section shall not
apply to the following:
‘‘(A) UNITED STATES REAL PROPERTY IN-
TERESTS.—Any United States real property in-
terest (as defined in section 897(c)(1)), other
than stock of a United States real property hold-
ing corporation which does not, on the day before
the expatriation date, meet the requirements of
section 897(c)(2).
‘‘(B) SPECIFIED PROPERTY.—Any property
or interest in property not described in subpara-
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graph (A) which the Secretary specifies in regu-
lations.
‘‘(2) SPECIAL RULES FOR CERTAIN RETIREMENT
PLANS.—
‘‘(A) IN GENERAL.—If a covered expatriate
holds on the day before the expatriation date any
interest in a retirement plan to which this para-
graph applies—
‘‘(i) such interest shall not be treated
as sold for purposes of subsection (a)(1), but
‘‘(ii) an amount equal to the present
value of the expatriate’s nonforfeitable ac-
crued benefit shall be treated as having been
received by such individual on such date as
a distribution under the plan.
‘‘(B) TREATMENT
OF
SUBSEQUENT
DIS-
TRIBUTIONS.—In the case of any distribution on
or after the expatriation date to or on behalf of
the covered expatriate from a plan from which
the expatriate was treated as receiving a dis-
tribution under subparagraph (A), the amount
otherwise includible in gross income by reason of
the subsequent distribution shall be reduced by
the excess of the amount includible in gross in-
come under subparagraph (A) over any portion
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of such amount to which this subparagraph pre-
viously applied.
‘‘(C) TREATMENT
OF
SUBSEQUENT
DIS-
TRIBUTIONS BY PLAN.—For purposes of this title,
a retirement plan to which this paragraph ap-
plies, and any person acting on the plan’s behalf,
shall treat any subsequent distribution described
in subparagraph (B) in the same manner as
such distribution would be treated without re-
gard to this paragraph.
‘‘(D) APPLICABLE PLANS.—This paragraph
shall apply to—
‘‘(i) any qualified retirement plan (as
defined in section 4974(c)),
‘‘(ii) an eligible deferred compensation
plan (as defined in section 457(b)) of an el-
igible 
employer 
described 
in 
section
457(e)(1)(A), and
‘‘(iii) to the extent provided in regula-
tions, any foreign pension plan or similar
retirement arrangements or programs.
‘‘(e) DEFINITIONS.—For purposes of this section—
‘‘(1) 
EXPATRIATE.—The 
term 
‘expatriate’
means—