I
106TH CONGRESS
2D SESSION
H. R. 5463
To amend the Internal Revenue Code of 1986 to affirm the confidentiality
of closing and similar agreements and agreements with foreign governments.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 12, 2000
Mr. HOUGHTON (for himself, Mr. SAM JOHNSON of Texas, and Mr. LEVIN)
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 affirm
the confidentiality of closing and similar agreements and
agreements with foreign governments.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. CONFIDENTIALITY OF CERTAIN DOCUMENTS
RELATING TO CLOSING AND SIMILAR AGREE-
MENTS AND TO AGREEMENTS WITH FOREIGN
GOVERNMENTS.
(a) CLOSING AND SIMILAR AGREEMENTS TREATED
AS RETURN INFORMATION.—Paragraph (2) of section
6103(b) of the Internal Revenue Code of 1986 (defining
return information) is amended by striking ‘‘and’’ at the
end of subparagraph (B), by inserting ‘‘and’’ at the end
of subparagraph (C), and by inserting after subparagraph
(C) the following new subparagraph:
‘‘(D) any agreement under section 7121,
and any similar agreement, and any back-
ground information related to such an agree-
ment or request for such an agreement,’’.
(b) AGREEMENTS WITH FOREIGN GOVERNMENTS.—
(1) IN GENERAL.—Subchapter B of chapter 61
of such Code (relating to miscellaneous provisions) is
amended by inserting after section 6104 the fol-
lowing new section:
‘‘SEC. 6105. CONFIDENTIALITY OF INFORMATION ARISING
UNDER TREATY OBLIGATIONS.
‘‘(a) IN GENERAL.—Tax convention information shall
not be disclosed.
‘‘(b) EXCEPTIONS.—Subsection (a) shall not apply—
‘‘(1) to the disclosure of tax convention infor-
mation to persons or authorities (including courts
and administrative bodies) which are entitled to such
disclosure pursuant to a tax convention,
‘‘(2) to any generally applicable procedural
rules regarding applications for relief under a tax
convention, or
‘‘(3) in any case not described in paragraphs
(1) or (2), to the disclosure of any tax convention
information not relating to a particular taxpayer if
the Secretary determines, after consultation with
each other party to the tax convention, that such
disclosure would not impair tax administration.
‘‘(c) DEFINITIONS.—For purposes of this section—
‘‘(1) TAX
CONVENTION
INFORMATION.—The
term ‘tax convention information’ means any—
‘‘(A) agreement entered into with the com-
petent authority of one or more foreign govern-
ments pursuant to a tax convention,
‘‘(B) application for relief under a tax con-
vention,
‘‘(C) any background information related
to such agreement or application,
‘‘(D) document implementing such agree-
ment, and
‘‘(E) any other information exchanged pur-
suant to a tax convention which is treated as
confidential or secret under the tax convention.
‘‘(2) TAX CONVENTION.—The term ‘tax conven-
tion’ means—
‘‘(A) any income tax or gift and estate tax
convention, or
‘‘(B) any other convention or bilateral
agreement (including multilateral conventions
and agreements and any agreement with a pos-
session of the United States) providing for the
avoidance of double taxation, the prevention of
fiscal evasion, nondiscrimination with respect to
taxes, the exchange of tax relevant information
with the United States, or mutual assistance in
tax matters.
‘‘(d) CROSS REFERENCES.—
‘‘For penalties for the unauthorized disclosure of
tax convention information which is return or re-
turn information, see sections 7213, 7213A, and
7431.’’.
(2) CLERICAL AMENDMENT.—The table of sec-
tions for subchapter B of chapter 61 of such Code
is amended by inserting after the item relating to
section 6104 the following new item:
‘‘Sec. 6105. Confidentiality of information arising under treaty
obligations.’’.
(c) EXCEPTION FROM PUBLIC INSPECTION AS WRIT-
TEN DETERMINATION.—
(1) CLOSING
AND
SIMILAR
AGREEMENTS.—
Paragraph (1) of section 6110(b) of such Code is
amended to read as follows:
‘‘(1) WRITTEN DETERMINATION.—
‘‘(A) IN GENERAL.—The term ‘written de-
termination’ means a ruling, determination let-
ter, technical advice memorandum, or Chief
Counsel advice.
‘‘(B) EXCEPTIONS.—Such term shall not
include any matter referred to in subparagraph
(C) or (D) of section 6103(b)(2).’’.
(2) AGREEMENTS
WITH
FOREIGN
GOVERN-
MENTS.—Paragraph (1) of section 6110(l) of such
Code is amended by inserting ‘‘or 6105’’ after
‘‘6104’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall take effect on the date of the enactment
of this Act.
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