‘‘(IV) a chronically ill individual 
(within 
the 
meaning 
of 
section 
7702B(c)(2), except that the require-
ments of subparagraph (A)(i) thereof 
shall only be treated as met if there is 
a certification that, as of such date, 
the period of inability described in 
such subparagraph with respect to the 
individual is an indefinite one which is 
reasonably expected to be lengthy in 
nature), or 
‘‘(V) an individual not described 
in any of the preceding subclauses 
who is not more than 10 years young-
er than the employee. 
‘‘(iii) 
SPECIAL
RULE
FOR
CHIL-
DREN.—Subject to subparagraph (F), an 
individual described in clause (ii)(II) shall 
cease to be an eligible designated bene-
ficiary as of the date the individual reaches 
majority and any remainder of the portion 
of the individual’s interest to which sub-
paragraph (H)(ii) applies shall be distrib-
uted within 10 years after such date.
‘‘(iv) TIME FOR DETERMINATION OF 
ELIGIBLE
DESIGNATED
BENEFICIARY.— 
The determination of whether a designated 
beneficiary is an eligible designated bene-
ficiary shall be made as of the date of 
death of the employee.’’. 
(3) EFFECTIVE DATES.— 
(A) IN GENERAL.—Except as provided in 
this paragraph and paragraphs (4) and (5), the 
amendments made by this subsection shall 
apply to distributions with respect to employees 
who die after December 31, 2019. 
(B) 
COLLECTIVE
BARGAINING
EXCEP-
TION.—In the case of a plan maintained pursu-
ant to one or more collective bargaining agree-
ments between employee representatives and 
one or more employers ratified before the date 
of enactment of this Act, the amendments made 
by this subsection shall apply to distributions 
with respect to employees who die in calendar 
years beginning after the earlier of— 
(i) the later of— 
(I) the date on which the last of 
such collective bargaining agreements 
terminates (determined without re-
gard to any extension thereof agreed 
to on or after the date of the enact-
ment of this Act); or 
(II) December 31, 2019; or 
(ii) December 31, 2021. 
For purposes of clause (i)(I), any plan amend-
ment made pursuant to a collective bargaining 
agreement relating to the plan which amends 
the plan solely to conform to any requirement 
added by this section shall not be treated as a 
termination of such collective bargaining agree-
ment. 
(C) GOVERNMENTAL PLANS.—In the case 
of a governmental plan (as defined in section 
414(d) of the Internal Revenue Code of 1986), 
subparagraph (A) shall be applied by sub-
stituting ‘‘December 31, 2021’’ for ‘‘December 
31, 2019’’. 
(4) EXCEPTION FOR CERTAIN EXISTING ANNU-
ITY CONTRACTS.— 
(A) IN GENERAL.—The amendments made 
by this subsection shall not apply to a qualified 
annuity which is a binding annuity contract in 
effect on the date of enactment of this Act and 
at all times thereafter.
(B) QUALIFIED
ANNUITY.—For purposes 
of this paragraph, the term ‘‘qualified annuity’’ 
means, with respect to an employee, an annu-
ity— 
(i) which is a commercial annuity (as 
defined in section 3405(e)(6) of the Inter-
nal Revenue Code of 1986); 
(ii) under which the annuity payments 
are made over the life of the employee or 
over the joint lives of such employee and a 
designated beneficiary (or over a period 
not extending beyond the life expectancy of 
such employee or the joint life expectancy 
of such employee and a designated bene-
ficiary) in accordance with the regulations 
described in section 401(a)(9)(A)(ii) of 
such Code (as in effect before such amend-
ments) and which meets the other require-
ments of section 401(a)(9) of such Code 
(as so in effect) with respect to such pay-
ments; and 
(iii) with respect to which— 
(I) annuity payments to the em-
ployee have begun before the date of 
enactment of this Act, and the em-
ployee has made an irrevocable elec-
tion before such date as to the method 
and amount of the annuity payments 
to the employee or any designated 
beneficiaries; or 
(II) if subclause (I) does not 
apply, the employee has made an ir-
revocable election before the date of 
enactment of this Act as to the meth-
od and amount of the annuity pay-
ments to the employee or any des-
ignated beneficiaries. 
(5) 
EXCEPTION
FOR
CERTAIN
BENE-
FICIARIES.— 
(A) IN GENERAL.—If an employee dies be-
fore the effective date, then, in applying the 
amendments made by this subsection to such 
employee’s designated beneficiary who dies after 
such date— 
(i) such amendments shall apply to 
any beneficiary of such designated bene-
ficiary; and 
(ii) the designated beneficiary shall be 
treated as an eligible designated bene-
ficiary for purposes of applying section
401(a)(9)(H)(ii) of the Internal Revenue 
Code of 1986 (as in effect after such 
amendments). 
(B) EFFECTIVE DATE.—For purposes of 
this paragraph, the term ‘‘effective date’’ means 
the first day of the first calendar year to which 
the amendments made by this subsection apply 
to a plan with respect to employees dying on or 
after such date. 
(b) PROVISIONS
RELATING
TO
PLAN
AMEND-
MENTS.— 
(1) IN GENERAL.—If this subsection applies to 
any plan amendment— 
(A) such plan shall be treated as being op-
erated in accordance with the terms of the plan 
during the period described in paragraph 
(2)(B)(i); and 
(B) except as provided by the Secretary of 
the Treasury, such plan shall not fail to meet 
the requirements of section 411(d)(6) of the In-
ternal Revenue Code of 1986 and section 
204(g) of the Employee Retirement Income Se-
curity Act of 1974 by reason of such amend-
ment.
(2) AMENDMENTS TO WHICH SUBSECTION AP-
PLIES.— 
(A) IN
GENERAL.—This subsection shall 
apply to any amendment to any plan or which 
is made— 
(i) pursuant to any amendment made 
by this section or pursuant to any regula-
tion issued by the Secretary of the Treas-
ury under this section or such amend-
ments; and 
(ii) on or before the last day of the 
first plan year beginning after December 
31, 2021, or such later date as the Sec-
retary of the Treasury may prescribe. 
In the case of a governmental or collectively 
bargained plan to which subparagraph (B) or 
(C) of subsection (a)(4) applies, clause (ii) shall 
be applied by substituting the date which is 2 
years after the date otherwise applied under 
such clause. 
(B) CONDITIONS.—This subsection shall 
not apply to any amendment unless— 
(i) during the period— 
(I) beginning on the date the leg-
islative or regulatory amendment de-
scribed in paragraph (1)(A) takes ef-
fect (or in the case of a plan amend-
ment not required by such legislative 
or regulatory amendment, the effec-
tive date specified by the plan); and 
(II) ending on the date described 
in subparagraph (A)(ii) (or, if earlier, 
the date the plan amendment is 
adopted), 
the plan is operated as if such plan amend-
ment were in effect; and 
(ii) such plan amendment applies 
retroactively for such period. 
SEC. 10. INCREASE IN PENALTY FOR FAILURE TO FILE. 
(a) IN GENERAL.—The second sentence of section 
6651(a) of the Internal Revenue Code of 1986, as amend-
ed by the Taxpayer First Act, is amended by striking 
‘‘$330’’ and inserting ‘‘$435’’. 
(b) INFLATION ADJUSTMENT.—Section 6651(j)(1) of 
such Code, as amended by such Act, is amended by strik-
ing ‘‘$330’’ and inserting ‘‘$435’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to returns the due date for which 
(including extensions) is after December 31, 2019.
SEC. 11. INCREASED PENALTIES FOR FAILURE TO FILE RE-
TIREMENT PLAN RETURNS. 
(a) IN GENERAL.—Subsection (e) of section 6652 of 
the Internal Revenue Code of 1986 is amended— 
(1) by striking ‘‘$25’’ and inserting ‘‘$250’’; 
and 
(2) by striking ‘‘$15,000’’ and inserting 
‘‘$150,000’’. 
(b) ANNUAL REGISTRATION STATEMENT AND NOTI-
FICATION OF CHANGES.—Subsection (d) of section 6652 
of the Internal Revenue Code of 1986 is amended— 
(1) by striking ‘‘$1’’ both places it appears in 
paragraphs (1) and (2) and inserting ‘‘$10’’; 
(2) by striking ‘‘$5,000’’ in paragraph (1) and 
inserting ‘‘$50,000’’; and 
(3) by striking ‘‘$1,000’’ in paragraph (2) and 
inserting ‘‘$10,000’’. 
(c) FAILURE TO PROVIDE NOTICE.—Subsection (h) 
of section 6652 of the Internal Revenue Code of 1986 is 
amended— 
(1) by striking ‘‘$10’’ and inserting ‘‘$100’’; 
and 
(2) 
by 
striking 
‘‘$5,000’’ 
and 
inserting 
‘‘$50,000’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to returns, statements, and notifi-
cations required to be filed, and notices required to be pro-
vided, after December 31, 2019. 
SEC. 12. INCREASE INFORMATION SHARING TO ADMIN-
ISTER EXCISE TAXES. 
(a) IN GENERAL.—Section 6103(o) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new paragraph: 
‘‘(3) TAXES IMPOSED BY SECTION 4481.—Re-
turns and return information with respect to taxes 
imposed by section 4481 shall be open to inspection 
by or disclosure to officers and employees of United 
States Customs and Border Protection of the De-
partment of Homeland Security whose official duties 
require such inspection or disclosure for purposes of 
administering such section.’’. 
(b) CONFORMING AMENDMENTS.—Paragraph (4) of 
section 6103(p) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘or (o)(1)(A)’’ each place it appears 
and inserting ‘‘, (o)(1)(A), or (o)(3)’’. 
Passed the House of Representatives July 24, 2019. 
Attest: 
Clerk.
116TH CONGRESS 
1ST SESSION 
H. R. 397 
AN ACT 
To amend the Internal Revenue Code of 1986 to 
create a Pension Rehabilitation Trust Fund, to 
establish a Pension Rehabilitation Administration 
within the Department of the Treasury to make 
loans to multiemployer defined benefit plans, and 
for other purposes.