I 
117TH CONGRESS 
2D SESSION 
H. R. 8558 
To amend the Internal Revenue Code of 1986 to impose a minimum tax 
on certain wealthy taxpayers that takes into account unrealized gains. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 28, 2022 
Mr. COHEN (for himself, Mr. BEYER, Mr. CARSON, Ms. DELAURO, Mr. 
EVANS, Mr. FOSTER, Mr. GARCI´A of Illinois, Mr. GRIJALVA, Mr. JONES, 
Ms. LEE of California, Ms. MCCOLLUM, Ms. NEWMAN, Mr. DEFAZIO, 
Mr. NADLER, Ms. SCHAKOWSKY, Ms. BARRAGA´N, Mr. GOMEZ, Ms. NOR-
TON, Ms. PORTER, Ms. TLAIB, Mrs. WATSON COLEMAN, Mr. WELCH, 
Mr. GARAMENDI, Mr. DANNY K. DAVIS of Illinois, Mr. YARMUTH, Mr. 
MCGOVERN, Ms. CLARKE of New York, Mr. BRENDAN F. BOYLE of 
Pennsylvania, Ms. PLASKETT, Mr. TAKANO, Mr. MOULTON, Mrs. CARO-
LYN B. MALONEY of New York, and Mr. DESAULNIER) introduced the 
following bill; which was referred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to impose 
a minimum tax on certain wealthy taxpayers that takes 
into account unrealized gains. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Billionaire Minimum 
Income Tax Act’’. 
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SEC. 2. MINIMUM TAX ON CERTAIN WEALTHY TAXPAYERS. 
(a) IN GENERAL.—Subtitle A of the Internal Rev-
enue Code of 1986 is amended by inserting after chapter 
4 the following new chapter: 
‘‘CHAPTER 5—MINIMUM TAX ON CERTAIN 
WEALTHY TAXPAYERS 
‘‘Sec. 1481. Minimum tax on certain wealthy taxpayers. 
‘‘Sec. 1482. Certain otherwise exempt transfers by certain wealthy taxpayers 
treated as taxable. 
‘‘SEC. 1481. MINIMUM TAX ON CERTAIN WEALTHY TAX-
PAYERS. 
‘‘(a) IN GENERAL.—In the case of an applicable tax-
payer, there is hereby imposed (in addition to any other 
tax imposed by this subtitle) for each taxable year a tax 
equal to the excess (if any) of— 
‘‘(1) 20 percent of the sum of— 
‘‘(A) the taxpayer’s taxable income for 
such taxable year, plus 
‘‘(B) the taxpayer’s net unrealized gain for 
such taxable year, over 
‘‘(2) the sum of— 
‘‘(A) the taxpayer’s minimum tax account 
balance for such taxable year, plus 
‘‘(B) the taxpayer’s regular tax liability (as 
defined in section 26(b)) for such taxable year. 
‘‘(b) LIMITATION ON MINIMUM TAX.—The tax im-
posed under subsection (a) with respect to any applicable 
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taxpayer (other than an applicable taxpayer described in 
subsection (c)(1)(B)) for any taxable year shall not exceed 
40 percent of the excess described in subsection (c)(1)(A) 
with respect to such taxpayer for such taxable year. 
‘‘(c) APPLICABLE TAXPAYER.—For purposes of this 
section— 
‘‘(1) IN GENERAL.—The term ‘applicable tax-
payer’ means— 
‘‘(A) any individual for any taxable year if 
the taxpayer’s net worth for such taxable year 
exceeds $100,000,000 (half such amount in the 
case of a married individual filing a separate re-
turn), and 
‘‘(B) any trust or estate treated as an ap-
plicable taxpayer under subsection (g). 
‘‘(2) NET
WORTH.—The term ‘net worth’ 
means, with respect to any taxpayer for any taxable 
year, the excess (if any), determined as of the close 
of such taxable year, of— 
‘‘(A) the estimated value of all assets of 
the taxpayer and all trust attributed assets of 
the taxpayer, as determined under regulations 
provided by the Secretary, over 
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‘‘(B) all debts (and such other liabilities as 
the Secretary may provide) of the taxpayer and 
all trust attributed debts of the taxpayer. 
‘‘(3) TRUST ATTRIBUTED ASSETS.—The term 
‘trust attributed assets’ means, with respect to any 
taxpayer— 
‘‘(A) any asset of a trust which such tax-
payer is treated as owning under subpart E of 
part I of subchapter J of chapter 1, and 
‘‘(B) any asset of a trust (other than a 
trust which a person other than the taxpayer is 
treated as owning under such subpart) that is 
distributable to the taxpayer or from which in-
come is distributable to the taxpayer in whole 
or in part, whether or not the taxpayer’s dis-
tribution rights are subject to a contingency, 
unless that contingency is the death of another 
trust beneficiary. 
‘‘(4) TRUST
ATTRIBUTED
DEBTS.—The term 
‘trust attributed debts’ means, with respect to any 
taxpayer— 
‘‘(A) any debt (and such other liabilities as 
the Secretary may provide) of a trust described 
in paragraph (3)(A), and 
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‘‘(B) any debt (and such other liabilities as 
the Secretary may provide) with respect to an 
asset described in paragraph (3)(B) if the hold-
ers of such debt have a right to repayment 
which is senior to the distribution rights of the 
taxpayer. 
‘‘(5) GRATUITOUS TRANSFERS.— 
‘‘(A) IN
GENERAL.—In the case of any 
asset which was transferred by the taxpayer 
during the 5-year period ending with the close 
of the taxable year for which the taxpayer’s net 
worth is determined (and which is not otherwise 
taken into account in determining such net 
worth), such taxpayer’s net worth (as deter-
mined for purposes of this section) shall be— 
‘‘(i) increased by the value of such 
transferred asset at the time of transfer, 
‘‘(ii) decreased (but not in excess of 
the amount of the increase under clause 
(i)) by the amount paid in consideration 
for such asset by the transferee, 
‘‘(iii) in the case of any decrease 
under clause (ii), increased to the extent of 
any liability of the transferee to the trans-
feror or related party (as defined under 
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section 267(b)) of the transferor, incurred 
in connection with the transfer of such 
asset, to the extent that the right to collect 
such liability is not already reflected in the 
net wealth of the transferor, and 
‘‘(iv) increased by the value of any 
such transferred asset transferred with a 
purpose that was in substantial part to 
avoid tax, to the extent not already in-
cluded as an increase under clause (i) or 
(iii). 
‘‘(B) 
EXCEPTIONS.—Subparagraph 
(A) 
shall not apply with respect to any transfer of 
an asset to— 
‘‘(i) an organization described in sec-
tion 170(c), 
‘‘(ii) a spouse or former spouse if sec-
tion 1041 applies to such transfer, or 
‘‘(iii) a spouse if both spouses are ap-
plicable taxpayers at the time of such 
transfer. 
‘‘(C) SPECIAL
RULE
REGARDING
TRANS-
FER TO AVOID TAX.—For purposes of subpara-
graph (A)(iv), if one or more transfers of assets 
would (but for this sentence) reduce the tax im-
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‘‘(A) the aggregate gains which would be 
recognized if such taxpayer sold each asset held 
at the close of such taxable year (including any 
asset described in subsection (c)(3)(A)) for such 
asset’s estimated value at such time, over 
‘‘(B) the aggregate losses which would be 
so recognized. 
‘‘(2) ESTIMATED VALUE.—For purposes of this 
section— 
‘‘(A) IN GENERAL.—Except as otherwise 
provided in this subsection, the term ‘estimated 
value’ means fair market value determined in 
such manner as the Secretary may provide. 
‘‘(B) NON-READILY TRADABLE ASSETS.— 
‘‘(i) DEFAULT METHOD.—In the ab-
sence of regulations or other guidance 
under clause (iii) or (iv) (and only in such 
absence), the estimated value of a non- 
readily tradable asset shall be determined 
by beginning with the greatest (determined 
after adjustment under clause (ii)) of— 
‘‘(I) the original basis amount, 
‘‘(II) the adjusted cost basis 
amount, or 
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‘‘(III) the most recent fair mar-
ket valuation amount. 
‘‘(ii) ADJUSTMENT FOR DEEMED AP-
PRECIATION.—Each amount described in 
subclauses (I), (II), and (III) of clause (i) 
shall be separately increased by a rate of 
appreciation equal to the sum of— 
‘‘(I) the annual rate of interest 
determined by the Secretary to be 
equivalent to the average of the 5-year 
constant maturity Treasury yields, as 
published by the Board of Governors 
of the Federal Reserve System, for 
the 5-year period ending on Sep-
tember 30 of the calendar year ending 
before the date with respect to which 
the estimated value is determined, 
plus 
‘‘(II) 2 percentage points, 
for the period beginning on the date with 
respect to which such amount relates and 
ending on the date with respect to which 
the estimated value is determined. 
‘‘(iii) REGULATIONS.—In the case of 
any non-readily tradable asset, the esti-
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mated value of such asset shall be deter-
mined by such method as the Secretary 
may prescribe in regulations or other guid-
ance. Such method may require a single 
valuation method with respect to any such 
asset or may provide one or more options 
for valuing any such asset and may (but is 
not required to) include one or more of the 
following: 
‘‘(I) Required formulaic valu-
ations based on any of the original 
basis amount (grossed up by a for-
mula), other adjusted cost basis 
amounts (potentially adjusted by a 
formula), most recent fair market 
valuation amount (grossed up by a 
formula), or formulaic multiple of 
book value or other financial state-
ment valuation. 
‘‘(II) Any valuation method uti-
lized with respect to illiquid taxpayers 
under subsection (f), including any 
method under the special valuation re-
gime and the rule that a valuation 
may be challenged by the taxpayer 
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only upon a showing of clear and con-
vincing error. 
‘‘(iv) CERTAIN
REQUIRED
APPLICA-
TIONS OF ILLIQUID TAXPAYER RULES.— 
The Secretary may issue regulations or 
other guidance which require certain tax-
payers which hold one or more non-readily 
tradable assets to apply one or more of the 
rules applicable to illiquid taxpayers under 
paragraph (4) and subsection (h) (without 
regard to whether the taxpayer makes the 
election described in paragraph (4) or any 
election under subsection (h)) with respect 
to all or any portion of such assets. The 
Secretary may require calculation and pay-
ment of estimated annual taxes on such as-
sets to the extent that the Secretary deter-
mines that doing so would best advance 
the goal of minimizing gaming by tax-
payers. 
‘‘(v) RECAPTURE
OF
DEPRECIATION 
AND AMORTIZATION PERMITTED.—Nothing 
in this subsection shall be construed to 
prevent the determination of gains and 
losses for purposes of this subsection with 
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respect to any asset on the basis of the ad-
justed basis of such asset (after taking into 
account any reductions in such basis for 
depreciation or amortization). 
‘‘(3) NON-READILY
TRADABLE
ASSET.—For 
purposes of this section, the term ‘non-readily 
tradable asset’ means any asset which is part of any 
class of assets with respect to which the Secretary 
has determined that mandatory annual valuations 
are inappropriate for purposes of this section. 
‘‘(4) ILLIQUID TAXPAYERS.— 
‘‘(A) IN GENERAL.—In the case of an il-
liquid taxpayer which makes the election de-
scribed in subparagraph (B)— 
‘‘(i) the net unrealized gain of such 
taxpayer shall be determined by only tak-
ing into account the unrealized gains (and 
losses) on assets other than non-readily 
tradable assets, and 
‘‘(ii) such taxpayer shall be subject to 
the requirements of subsection (f) with re-
spect to all non-readily tradable assets held 
by the taxpayer. 
‘‘(B) ILLIQUID TAXPAYER.—For purposes 
of this subsection, the term ‘illiquid taxpayer’ 
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means any taxpayer for any taxable year if the 
estimated value of all assets other than non- 
readily tradable assets of the taxpayer as of the 
close of such taxable year does not exceed 20 
percent of the taxpayer’s net worth for such 
taxable year. 
‘‘(C) 
ELECTION.—Any 
election 
made 
under this paragraph shall be made at such 
time and in such manner as the Secretary may 
provide and, once made with respect to any 
asset, may be revoked only with the consent of 
the Secretary (and subject to such requirements 
as the Secretary may provide to ensure proper 
taxation of gains and losses with respect to 
such assets). If the Secretary determines that it 
is consistent with the purposes of this section, 
the Secretary may permit an illiquid taxpayer 
to elect to apply this paragraph (and subsection 
(f)) with respect to such portion of non-readily 
tradable assets of the taxpayer as the Secretary 
determines is consistent with such purposes. 
‘‘(f) UNLIQUIDATED TAX RESERVE ACCOUNTS.— 
‘‘(1) IN GENERAL.—The Secretary shall issue 
regulations or other guidance under which, in the 
case of any taxpayer subject to the requirements of 
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‘‘(C) The deemed rate of return for pur-
poses of subparagraph (B)(ii)(I) shall be the es-
timated investment rate of return for the entire 
economy as determined by the Secretary, or if 
the Secretary provides that the notional interest 
percentage should be determined separately 
with respect to any class of assets, such other 
rate of return as the Secretary determines ap-
propriate for such asset class. 
‘‘(D) Any sale, or other transfer, of any 
ULTRA asset shall be treated as a distribution 
from the ULTRA, except that the Secretary 
shall provide rules for treating transfers made 
in the ordinary course of a trade or business 
and exchanges of non-readily tradable assets as 
other than distributions. 
‘‘(E) Except as otherwise provided by the 
Secretary, an increase in debt shall be treated 
as a distribution from the ULTRA and any 
subsequent decrease in debt shall be taken into 
account as a reduction in distributions from the 
ULTRA or as a credit against tax (as the Sec-
retary determines appropriate). 
‘‘(F) Any distribution from the ULTRA 
shall result in an increase in the taxable income 
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of the taxpayer equal to the product of the esti-
mated value of the distribution multiplied by 
the notional interest percentage at the time of 
the distribution. 
‘‘(G) A taxpayer may elect to pay liabilities 
under this subsection in advance and proper 
credit shall be provided for any such liabilities 
so paid in advance upon resolution of the 
ULTRA. 
‘‘(H) The Secretary shall establish a spe-
cial valuation regime for purposes of deter-
mining the estimated value of any distribution 
of a non-tradable asset from an ULTRA. Such 
special valuation regime shall ensure valuation 
accuracy, minimize the potential for under-valu-
ation, and minimize the potential for taxpayer 
gaming. Such regime may include the use of 
appraisers employed by the Secretary, formulaic 
valuations, or any other method designed to en-
sure valuation accuracy and minimize the po-
tential for gaming. Any estimated value deter-
mined under such special valuation regime may 
be challenged by the taxpayer only upon a 
showing of clear and convincing error. In place 
of the standard due process safeguards, a tax-
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payer may opt to reject such special valuations 
(under rules and procedures to be determined 
by the Secretary) and instead maintain the non- 
tradable asset within an ULTRA. 
‘‘(I) If a taxpayer is subject to the require-
ments of this subsection with respect to any as-
sets, such taxpayer shall remain subject to the 
requirements of this subsection (without regard 
to whether or not such taxpayer ceases to be an 
applicable taxpayer) until the ULTRA is re-
solved and all liabilities with respect to such 
ULTRA have been paid. For purposes of this 
subsection, an ULTRA shall be treated as re-
solved upon the death of the taxpayer, the dis-
tribution of all assets of the ULTRA, a deter-
mination by the Secretary that further treat-
ment as an ULTRA is inconsistent with the 
purposes of this section, or a determination by 
the Secretary described in subparagraph (J). 
‘‘(J) If the Secretary determines, upon ap-
plication by the taxpayer, that the resolution of 
an ULTRA is not inconsistent with the pur-
poses of this section— 
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‘‘(i) all remaining assets of such 
ULTRA shall be treated as distributed, 
and 
‘‘(ii) such ULTRA shall be treated as 
resolved. 
‘‘(K) Upon the resolution of the ULTRA, 
there shall be imposed on the taxpayer a tax (or 
a refund of taxes previously paid may be award-
ed) as determined by the Secretary by applying 
a retrospective formula determined by the Sec-
retary to eliminate the entire tax advantage of 
deferral. Such tax shall be determined in a 
manner to take into account prior distributions 
from the ULTRA and any tax previously im-
posed thereon and any liability under this sub-
section which is paid in advance under subpara-
graph (G). 
‘‘(L) If, upon the death of a taxpayer, an 
heir of ULTRA assets elects to initiate a carry- 
over ULTRA for such inherited assets— 
‘‘(i) such assets shall not be taken 
into account under subparagraph (J) upon 
the resolution of the decedent’s ULTRA, 
‘‘(ii) such heir’s carry-over ULTRA 
shall begin with a notional interest per-
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centage equal to that of the decedent’s 
ULTRA at the time of death, and 
‘‘(iii) such carry-over ULTRA shall be 
maintained separately from any ULTRA 
otherwise maintained by such heir. 
‘‘(g) TREATMENT OF TRUSTS AND ESTATES AS AP-
PLICABLE TAXPAYERS.—For purposes of this chapter— 
‘‘(1) IN GENERAL.—Any trust (other than a 
trust the assets of which are treated as owned by 
another taxpayer under subpart E of part I of sub-
chapter J of chapter 1) or applicable estate shall be 
treated as an applicable taxpayer for purposes of 
this chapter if any assets of the trust are trust at-
tributed assets with respect to any applicable tax-
payer. 
‘‘(2) APPLICABLE ESTATE.—An estate is an ap-
plicable estate beginning with the third taxable year 
following the date of death of the decedent if the de-
cedent was an applicable taxpayer for any taxable 
year ending during the 5-year period ending on the 
date of the decedent’s death. 
‘‘(3) TRUSTS
ACQUIRING
UNITED
STATES 
BENEFICIARIES.— 
‘‘(A) IN GENERAL.—If paragraph (1) ap-
plies to a trust for a transferor or beneficiary’s 
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taxable year, and paragraph (1) would have ap-
plied to the trust for any of the preceding 10 
taxable years (other than years prior to the ef-
fective date of this section) but for the fact that 
in such year or years there was no United 
States beneficiary for any portion of the trust, 
then the transferor shall be treated as having 
income for the taxable year equal to— 
‘‘(i) the aggregate increases in the tax 
imposed under this title for each such prior 
taxable year (beginning after the date of 
the enactment of this chapter) which would 
have occurred if paragraph (1) had applied 
to such trust for such year, plus 
‘‘(ii) interest on such increase deter-
mined with respect to each such taxable 
year determined at the underpayment rate. 
‘‘(B) NO
LIVING
TRANSFEROR.—In the 
event that subparagraph (A) would apply, but 
for the fact that there is no living transferor, 
then each beneficiary of such trust, other than 
a contingent beneficiary, shall be treated as 
having income for the taxable year equal to— 
‘‘(i) the aggregate increases in the tax 
imposed under this title for each such prior 
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taxable year (beginning after the date of 
the enactment of this chapter) which would 
have occurred if paragraph (1) had applied 
to such trust, but only to the extent of 
such increases in tax which would have oc-
curred with respect to such portion of trust 
assets as are distributable to the bene-
ficiary, or such portion of trust income as 
is distributable to the beneficiary (whether 
or not such assets or income are so distrib-
uted), plus 
‘‘(ii) interest on such increase deter-
mined with respect to each such taxable 
year determined at the underpayment rate. 
‘‘(C) 
CONTINGENT
BENEFICIARIES.—In 
the event that no tax is imposed on a bene-
ficiary under subparagraph (B) because such 
beneficiary is contingent, then in the first tax-
able year in which such beneficiary is no longer 
contingent, such beneficiary shall be treated as 
having income for the taxable year equal to the 
amount that would have been imposed under 
subparagraph (B), plus interest on such in-
crease determined with respect to each such 
taxable year determined at the underpayment 
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rate, but in no case will such tax and interest 
be imposed with respect to any portion of trust 
assets or income previously subject to tax under 
this section. 
‘‘(D) CONTINGENT.—For purposes of this 
paragraph, a beneficiary’s interest in a trust 
shall be treated as contingent if (and only if) 
such interest depends on the outcome of uncer-
tain future events (other than the discretion of 
the trustee to determine the timing of the dis-
tribution of income). 
‘‘(h) ELECTION TO PAY LIABILITY
IN INSTALL-
MENTS.— 
‘‘(1) IN GENERAL.—A taxpayer may elect to 
pay the tax imposed under subsection (a) or (g) for 
any taxable year in 5 equal annual installments (in 
the case of the taxpayer’s first taxable year begin-
ning in 2023, 9 equal annual installments). 
‘‘(2) DATE FOR PAYMENT OF INSTALLMENTS.— 
If an election is made under paragraph (1), the first 
installment shall be paid on or before the due date 
(determined without regard to any extension of time 
for filing the return) for the return of tax for the 
taxable year described in subsection (a) and each 
succeeding installment shall be paid on or before the 
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due date (as so determined) for the return of tax for 
the taxable year following the taxable year with re-
spect to which the preceding installment was made. 
‘‘(3) ACCELERATION OF PAYMENT.— 
‘‘(A) IN GENERAL.—If there is an addition 
to tax for failure to timely pay any installment 
required under this subsection (other than by 
reason of a timely election made under para-
graph (5)), a bankruptcy of the taxpayer (in-
cluding in a title 11 or similar case), or any 
similar circumstance, then the unpaid portion 
of all remaining installments shall be due on 
the date of such event (or in the case of a title 
11 or similar case, the day before the petition 
is filed). 
‘‘(B) PAYMENT
WITHIN
MONTHS.—In 
the case of the payment of any installment re-
quired under this subsection during the 6- 
month period beginning on the due date of such 
installment, subparagraph (A) shall not apply 
and rules similar to the rules of section 
6166(g)(3)(B) shall apply. 
‘‘(4) PRORATION OF DEFICIENCY TO INSTALL-
MENTS.—If an election is made under paragraph (1) 
to pay tax imposed under subsection (a) in install-
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ments and a deficiency has been assessed with re-
spect to such tax, the deficiency shall be prorated to 
the installments payable under paragraph (1). The 
part of the deficiency so prorated to any installment 
the date for payment of which has not arrived shall 
be collected at the same time as, and as a part of, 
such installment. The part of the deficiency so pro-
rated to any installment the date for payment of 
which has arrived shall be paid upon notice and de-
mand from the Secretary. This subsection shall not 
apply if the deficiency is due to negligence, to inten-
tional disregard of rules and regulations, or to fraud 
with intent to evade tax. 
‘‘(5) ELECTION.—Any election under paragraph 
(1) shall be made at such time and in such manner 
as the Secretary shall provide. 
‘‘(6) REDUCTION OF INSTALLMENT PAYMENTS 
TO EXTENT MINIMUM ACCOUNT BALANCE IS IN EX-
CESS OF EXPECTED RECOGNIZED GAIN.—If the min-
imum account balance of the taxpayer for any tax-
able year (reduced by the amount of any credit al-
lowed under section 25E for such taxable year) ex-
ceeds 20 percent of the taxpayer’s net unrealized 
gain for such taxable year, such excess shall be ap-
plied to reduce the amount of any installment pay-
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ments of the taxpayer the date for payment of which 
has not yet arrived (without regard to the taxable 
year to which such installment payment relates). 
Any reduction under the preceding sentence shall be 
applied to installment payments on a last-due, first- 
reduced basis. 
‘‘(i) INFORMATION
REPORTING.—The Secretary 
shall, not later than 1 year after the date of the enactment 
of this section, issue regulations— 
‘‘(1) requiring such persons as the Secretary 
determines appropriate to file a return with the Sec-
retary which include such information as the Sec-
retary determines necessary to carry out this sec-
tion, including the provision of applicable financial 
statements (within the meaning of section 451(b)), 
other financial or accounting statements, insurance 
valuations, or similar documents, and 
‘‘(2) requiring persons required to file returns 
under paragraph (1) to furnish statements to such 
other persons as the Secretary determines appro-
priate which contain all or a portion of the informa-
tion contained in such return. 
‘‘(j) REGULATIONS.—The Secretary shall issue such 
regulations or other guidance as may be necessary or ap-
propriate to carry out the purposes this section and sec-
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tions 25E and 36C, including regulations or other guid-
ance to— 
‘‘(1) require reporting of basis and estimated 
value of assets, aggregated by asset class or other-
wise, held by the applicable taxpayer, and liabilities 
of the applicable taxpayer, as of the close of the tax-
able year, in such manner as the Secretary may pro-
vide, 
‘‘(2) discourage applicable taxpayers from inap-
propriately converting assets into assets which are 
non-readily tradable assets, 
‘‘(3) treat assets held directly or indirectly by 
the applicable taxpayer as held by the applicable tax-
payer, 
‘‘(4) in such circumstances as the Secretary de-
termines there is a reasonable risk of an intent to 
avoid tax, treat assets owned or controlled by per-
sons related to the applicable taxpayer as owned by 
the applicable taxpayer, 
‘‘(5) provide for the application of such sections 
with respect to married individuals, including rules 
with respect to— 
‘‘(A) individuals whose marital or joint re-
turn filing status changes, and 
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‘‘(B) the transfer of an individual’s min-
imum tax account balance to the individual’s 
spouse or otherwise upon the death of such in-
dividual, 
‘‘(6) provide that the tax imposed under this 
section shall not be taken into account in deter-
mining the amount of any required payment of esti-
mated tax or in satisfying the safe harbor to avoid 
a penalty for the underpayment of estimated tax, 
and 
‘‘(7) if the Secretary determines appropriate to 
carry out the purposes of this section, provide for 
the separate application of such sections with re-
spect to different classes of assets. 
‘‘(k) STANDARDS
FOR MAKING CERTAIN DETER-
MINATIONS.—For purposes of making any determination 
described in subsection (e)(2)(A), (e)(2)(B)(iii), (e)(3), 
(f)(2)(C), or (f)(2)(D), the Secretary shall balance the 
goals of ensuring valuation accuracy, minimizing the po-
tential for taxpayer gaming, and avoiding unduly excessive 
compliance and administrative costs. 
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‘‘SEC. 1482. CERTAIN OTHERWISE EXEMPT TRANSFERS BY 
CERTAIN WEALTHY TAXPAYERS TREATED AS 
TAXABLE. 
‘‘(a) IN GENERAL.—Notwithstanding any other pro-
vision of this title, in the case of any specified transfer 
by a covered taxpayer, gain shall be recognized by such 
covered taxpayer in an amount equal to the excess (if any) 
of the estimated value (as defined in section 1481(e)(2)) 
of the property transferred over the adjusted basis of such 
property. 
‘‘(b) SPECIFIED TRANSFER.—For purposes of this 
section, the term ‘specified transfer’ means any gift, chari-
table contribution, bequest, or other transfer upon death. 
‘‘(c) COVERED TAXPAYER.—For purposes of this sec-
tion, the term ‘covered taxpayer’ means, with respect to 
any taxable year, any taxpayer which is an applicable tax-
payer for such taxable year or was an applicable taxpayer 
for any of the 10 taxable years immediately preceding such 
taxable year. 
‘‘(d) REGULATIONS.—The Secretary shall issue such 
regulations or other guidance as may be necessary or ap-
propriate to carry out the purposes of this section, includ-
ing regulations or other guidance that provide for excep-
tions with respect to— 
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‘‘(1) transfers which are de minimis or which 
otherwise do not pose a risk of circumventing the 
purposes of this chapter, and 
‘‘(2) taxpayers which do not pose such a risk.’’. 
(b) CREDIT
AGAINST
TAXES
ON
RECOGNIZED 
GAINS.—Subpart A of part IV of subchapter A of chapter 
1 of the Internal Revenue Code of 1986 is amended by 
inserting after section 25D the following new section: 
‘‘SEC. 25E. MINIMUM TAX ON CERTAIN WEALTHY TAX-
PAYERS CREDITED AGAINST RECOGNIZED 
GAINS. 
‘‘In the case of an individual (including any estate 
or trust), there shall be allowed as a credit against the 
tax imposed by this chapter for the taxable year an 
amount equal to the lesser of— 
‘‘(1) the taxpayer’s minimum tax account bal-
ance (as defined in section 1481) for such taxable 
year determined, in the case of any tax imposed 
under section 1481 with respect to which an election 
is made under such section to pay such tax in in-
stallments, by only taking into account so much of 
such tax as has been paid as of the close of such 
taxable year, and 
‘‘(2) the excess (if any) of— 
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‘‘(A) the taxpayer’s regular tax (as defined 
in section 26(b)) for such taxable year, over 
‘‘(B) the amount which would be deter-
mined under subparagraph (A) if the taxpayer 
did not recognize any gain or loss for such tax-
able year.’’. 
(c) REFUND OF EXCESS MINIMUM TAX ON CERTAIN 
WEALTHY TAXPAYERS.—Subpart C of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after section 36B the fol-
lowing new section: 
‘‘SEC. 36C. CREDIT FOR EXCESS MINIMUM TAX ON CERTAIN 
WEALTHY TAXPAYERS. 
‘‘In the case of an individual (including any estate 
or trust), there shall be allowed as a credit against the 
tax imposed by this subtitle for any taxable year an 
amount equal to the excess (if any) of— 
‘‘(1) the amount described in section 25E(1) for 
such taxable year, over 
‘‘(2) the sum of— 
‘‘(A) 20 percent of the taxpayer’s net unre-
alized gain (as defined in section 1481) for such 
taxable year, 
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‘‘(B) the aggregate credits allowed under 
section 25E for such taxable year and all prior 
taxable years, and 
‘‘(C) the aggregate reductions determined 
under section 1481(h)(6) for such taxable year 
and all prior taxable years.’’. 
(d) PENALTIES FOR FAILURE TO REPORT.— 
(1) RETURNS.—Section 6724(d)(1)(D) of the 
Internal Revenue Code of 1986 is amended by in-
serting ‘‘1481(i)(1) or’’ before ‘‘6055’’. 
(2) STATEMENTS.—Section 6724(d)(2) of such 
Code is amended— 
(A) in subparagraph (II), by striking ‘‘or’’ 
at the end, 
(B) in the first subparagraph (JJ), by 
striking the period at the end and inserting a 
comma, 
(C) in the second subparagraph (JJ)— 
(i) by redesignating such subpara-
graph as subparagraph (KK), and 
(ii) by striking the period at the end 
and inserting ‘‘, or’’, and 
(D) by adding at the end the following new 
subparagraph: 
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‘‘(LL) section 1481(i)(2) (relating to state-
ments relating to minimum tax on certain 
wealthy taxpayers).’’. 
(e) CONFORMING AMENDMENTS.— 
(1) Section 6211(b)(4)(A) of the Internal Rev-
enue Code of 1986 is amended by inserting ‘‘36C,’’ 
after ‘‘36B,’’. 
(2) Paragraph (2) of section 1324(b) of title 
31, United States Code, is amended by inserting 
‘‘36C,’’ after ‘‘36B,’’. 
(3) The table of chapters for subtitle A of the 
Internal Revenue Code of 1986 is amended by in-
serting after the item relating to chapter 4 the fol-
lowing new item: 
‘‘CHAPTER 5. MINIMUM TAX ON CERTAIN WEALTHY TAXPAYERS.’’. 
(4) The table of sections for subpart A of part 
IV of subchapter A of chapter 1 of the Internal Rev-
enue Code of 1986 is amended by inserting after the 
item relating to section 25D the following new item: 
‘‘Sec. 25E. Minimum tax on certain wealthy taxpayers credited against recog-
nized gains.’’. 
(5) The table of sections for subpart C of part 
IV of subchapter A of chapter 1 of the Internal Rev-
enue Code of 1986 is amended by inserting after the 
item relating to section 36B the following new item: 
‘‘Sec. 36C. Credit for excess minimum tax on certain wealthy taxpayers.’’. 
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