144 
SEC. 103. TREATMENT OF ABLE ACCOUNTS UNDER CER-
TAIN FEDERAL PROGRAMS. 
(a) ACCOUNT FUNDS DISREGARDED FOR PURPOSES 
OF CERTAIN OTHER MEANS-TESTED FEDERAL PRO-
GRAMS.—Notwithstanding any other provision of Federal 
law that requires consideration of 1 or more financial cir-
cumstances of an individual, for the purpose of deter-
mining eligibility to receive, or the amount of, any assist-
ance or benefit authorized by such provision to be provided 
to or for the benefit of such individual, any amount (in-
cluding earnings thereon) in the ABLE account (within 
the meaning of section 529A of the Internal Revenue Code 
of 1986) of such individual, any contributions to the 
ABLE account of the individual, and any distribution for 
qualified disability expenses (as defined in subsection 
(e)(5) of such section) shall be disregarded for such pur-
pose with respect to any period during which such indi-
vidual maintains, makes contributions to, or receives dis-
tributions from such ABLE account, except that, in the 
case of the supplemental security income program under 
title XVI of the Social Security Act— 
(1) a distribution for housing expenses (within 
the meaning of such subsection) shall not be so dis-
regarded, and 
(2) in the case of such program, any amount 
(including such earnings) in such ABLE account
145 
shall be considered a resource of the designated ben-
eficiary to the extent that such amount exceeds 
$100,000. 
(b) SUSPENSION OF SSI BENEFITS DURING PERI-
ODS OF EXCESSIVE ACCOUNT FUNDS.— 
(1) IN GENERAL.—The benefits of an individual 
under the supplemental security income program 
under title XVI of the Social Security Act shall not 
be terminated, but shall be suspended, by reason of 
excess resources of the individual attributable to an 
amount in the ABLE account (within the meaning 
of section 529A of the Internal Revenue Code of 
1986) of the individual not disregarded under sub-
section (a) of this section. 
(2) NO IMPACT ON MEDICAID ELIGIBILITY.—An 
individual who would be receiving payment of such 
supplemental security income benefits but for the 
application of paragraph (1) shall be treated for pur-
poses of title XIX of the Social Security Act as if 
the individual continued to be receiving payment of 
such benefits. 
(c) EFFECTIVE DATE.—This section shall take effect 
on the date of the enactment of this Act.
146 
SEC. 104. TREATMENT OF ABLE ACCOUNTS IN BANK-
RUPTCY. 
(a) EXCLUSION FROM PROPERTY OF THE ESTATE.— 
Section 541(b) of the title 11, United States Code, is 
amended— 
(1) in paragraph (8), by striking ‘‘or’’ at the 
end; 
(2) in paragraph (9), by striking the period at 
the end and inserting a semicolon and ‘‘or’’; and 
(3) by inserting after paragraph (9) the fol-
lowing: 
‘‘(10) funds placed in an account of a qualified 
ABLE program (as defined in section 529A(b) of 
the Internal Revenue Code of 1986) not later than 
365 days before the date of the filing of the petition 
in a case under this title, but— 
‘‘(A) only if the designated beneficiary of 
such account was a child, stepchild, grandchild, 
or stepgrandchild of the debtor for the taxable 
year for which funds were placed in such ac-
count; 
‘‘(B) only to the extent that such funds— 
‘‘(i) are not pledged or promised to 
any entity in connection with any extension 
of credit; and
147 
‘‘(ii) are not excess contributions (as 
described in section 4973(h) of the Inter-
nal Revenue Code of 1986); and 
‘‘(C) in the case of funds placed in all such 
accounts having the same designated bene-
ficiary not earlier than 720 days nor later than 
365 days before such date, only so much of 
such funds as does not exceed $6,225.’’. 
(b) 
DEBTOR’S
MONTHLY
EXPENSES.—Section 
707(b)(2)(A)(ii)(II) of title 11, United States Code, is 
amended by adding at the end ‘‘Such monthly expenses 
may include, if applicable, contributions to an account of 
a qualified ABLE program to the extent such contribu-
tions are not excess contributions (as described in section 
4973(h) of the Internal Revenue Code of 1986) and if the 
designated beneficiary of such account is a child, stepchild, 
grandchild, or stepgrandchild of the debtor.’’. 
(c) RECORD
OF
DEBTOR’S
INTEREST.—Section 
521(c) of title 11, United States Code, is amended by in-
serting ‘‘, an interest in an account in a qualified ABLE 
program (as defined in section 529A(b) of such Code,’’ 
after ‘‘Internal Revenue Code of 1986)’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to cases commenced
148 
under title 11, United States Code, on or after the date 
of the enactment of this Act. 
SEC. 105. INVESTMENT DIRECTION RULE FOR 529 PLANS. 
(a) AMENDMENTS RELATING TO INVESTMENT DI-
RECTION RULE FOR 529 PLANS.— 
(1) Paragraph (4) of section 529(b) is amended 
by striking ‘‘may not directly or indirectly’’ and all 
that follows and inserting ‘‘may, directly or indi-
rectly, direct the investment of any contributions to 
the program (or any earnings thereon) no more than 
2 times in any calendar year.’’. 
(2) The heading of paragraph (4) of section 
529(b)is amended by striking ‘‘NO’’ and inserting 
‘‘LIMITED’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2014. 
TITLE II—OFFSETS 
SEC. 201. CORRECTION TO WORKERS COMPENSATION OFF-
SET AGE. 
(a) RETIREMENT AGE.—Section 224(a) of the Social 
Security Act (42 U.S.C. 424a(a)) is amended, in the mat-
ter preceding paragraph (1), by striking ‘‘the age of 65’’ 
and inserting ‘‘retirement age (as defined in section 
216(l)(1))’’.
149 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply with respect to any individual 
who attains 65 years of age on or after the date that is 
12 months after the date of the enactment of this Act. 
SEC. 
202. 
ACCELERATED 
APPLICATION 
OF 
RELATIVE 
VALUE TARGETS FOR MISVALUED SERVICES 
IN THE MEDICARE PHYSICIAN FEE SCHED-
ULE. 
Section 1848(c) of the Social Security Act (42 U.S.C. 
1395w–4(c)) is amended— 
(1) in subclause (VIII) of paragraph (2)(B)(v), 
as added by section 220(d)(2) of the Protecting Ac-
cess to Medicare Act of 2014 (Public Law 113– 
93)— 
(A) by striking ‘‘2017’’ and inserting 
‘‘2016’’; and 
(B) by redesignating such subclause as 
subclause (IX); 
(2) in paragraph (2)(O)— 
(A) in the matter preceding clause (i), by 
striking ‘‘2017 through 2020’’ and inserting 
‘‘2016 through 2018’’; 
(B) in clause (iii), by striking ‘‘2017’’ and 
inserting ‘‘2016’’; and
150 
(C) in clause (v), by inserting ‘‘(or, for 
2016, 1.0 percent)’’ after ‘‘0.5 percent’’; and 
(3) in paragraph (7), by striking ‘‘2017’’ and 
inserting ‘‘2016’’. 
SEC. 203. CONSISTENT TREATMENT OF VACUUM ERECTION 
SYSTEMS IN MEDICARE PARTS B AND D. 
Section 1834(a)(1) of the Social Security Act (42 
U.S.C. 1395m(a)(1)) is amended by adding at the end the 
following new subparagraph: 
‘‘(I) TREATMENT
OF
VACUUM
ERECTION 
SYSTEMS.—Effective for items and services fur-
nished on and after July 1, 2015, vacuum erec-
tion systems described as prosthetic devices de-
scribed in section 1861(s)(8) shall be treated in 
the same manner as erectile dysfunction drugs 
are treated for purposes of section 1860D- 
2(e)(2)(A).’’. 
SEC. 204. ONE-YEAR DELAY OF IMPLEMENTATION OF ORAL- 
ONLY POLICY UNDER MEDICARE ESRD PRO-
SPECTIVE PAYMENT SYSTEM. 
Section 632(b)(1) of the American Taxpayer Relief 
Act of 2012 (42 U.S.C. 1395rr note), as amended by sec-
tion 217(a)(1) of the Protecting Access to Medicare Act 
of 2014 (Public Law 113-93), is amended by striking 
‘‘2024’’ and inserting ‘‘2025’’.
151 
SEC. 205. MODIFICATION RELATING TO INLAND WATER-
WAYS TRUST FUND FINANCING RATE. 
(a) IN GENERAL.—Section 4042(b)(2)(A) is amend-
ed to read as follows: 
‘‘(A) The Inland Waterways Trust Fund 
financing rate is 29 cents per gallon.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to fuel used after March 31, 2015. 
SEC. 206. CERTIFIED PROFESSIONAL EMPLOYER ORGANI-
ZATIONS. 
(a) EMPLOYMENT TAXES.—Chapter 25 is amended 
by adding at the end the following new section: 
‘‘SEC. 3511. CERTIFIED PROFESSIONAL EMPLOYER ORGANI-
ZATIONS. 
‘‘(a) GENERAL RULES.—For purposes of the taxes, 
and other obligations, imposed by this subtitle— 
‘‘(1) a certified professional employer organiza-
tion shall be treated as the employer (and no other 
person shall be treated as the employer) of any work 
site employee performing services for any customer 
of such organization, but only with respect to remu-
neration remitted by such organization to such work 
site employee, and 
‘‘(2) the exemptions, exclusions, definitions, and 
other rules which are based on type of employer and 
which would (but for paragraph (1)) apply shall
152 
apply with respect to such taxes imposed on such re-
muneration. 
‘‘(b) SUCCESSOR EMPLOYER STATUS.—For purposes 
of sections 3121(a)(1), 3231(e)(2)(C), and 3306(b)(1)— 
‘‘(1) a certified professional employer organiza-
tion entering into a service contract with a customer 
with respect to a work site employee shall be treated 
as a successor employer and the customer shall be 
treated as a predecessor employer during the term 
of such service contract, and 
‘‘(2) a customer whose service contract with a 
certified professional employer organization is termi-
nated with respect to a work site employee shall be 
treated as a successor employer and the certified 
professional employer organization shall be treated 
as a predecessor employer. 
‘‘(c) LIABILITY OF CERTIFIED PROFESSIONAL EM-
PLOYER ORGANIZATION.—Solely for purposes of its liabil-
ity for the taxes and other obligations imposed by this sub-
title— 
‘‘(1) a certified professional employer organiza-
tion shall be treated as the employer of any indi-
vidual (other than a work site employee or a person 
described in subsection (f)) who is performing serv-
ices covered by a contract meeting the requirements
153 
of section 7705(e)(2), but only with respect to remu-
neration remitted by such organization to such indi-
vidual, and 
‘‘(2) the exemptions, exclusions, definitions, and 
other rules which are based on type of employer and 
which would (but for paragraph (1)) apply shall 
apply with respect to such taxes imposed on such re-
muneration. 
‘‘(d) TREATMENT OF CREDITS.— 
‘‘(1) IN GENERAL.—For purposes of any credit 
specified in paragraph (2)— 
‘‘(A) such credit with respect to a work 
site employee performing services for the cus-
tomer applies to the customer, not the certified 
professional employer organization, 
‘‘(B) the customer, and not the certified 
professional employer organization, shall take 
into account wages and employment taxes— 
‘‘(i) paid by the certified professional 
employer organization with respect to the 
work site employee, and 
‘‘(ii) for which the certified profes-
sional employer organization receives pay-
ment from the customer, and
154 
‘‘(C) the certified professional employer or-
ganization shall furnish the customer and the 
Secretary with any information necessary for 
the customer to claim such credit. 
‘‘(2) CREDITS SPECIFIED.—A credit is specified 
in this paragraph if such credit is allowed under— 
‘‘(A) section 41 (credit for increasing re-
search activity), 
‘‘(B) section 45A (Indian employment 
credit), 
‘‘(C) section 45B (credit for portion of em-
ployer social security taxes paid with respect to 
employee cash tips), 
‘‘(D) section 45C (clinical testing expenses 
for certain drugs for rare diseases or condi-
tions), 
‘‘(E) section 45R (employee health insur-
ance expenses of small employers), 
‘‘(F) section 51 (work opportunity credit), 
‘‘(G) section 1396 (empowerment zone em-
ployment credit), and 
‘‘(H) any other section as provided by the 
Secretary. 
‘‘(e) SPECIAL RULE FOR RELATED PARTY.—This 
section shall not apply in the case of a customer which
155 
bears a relationship to a certified professional employer 
organization described in section 267(b) or 707(b). For 
purposes of the preceding sentence, such sections shall be 
applied by substituting ‘10 percent’ for ‘50 percent’. 
‘‘(f) SPECIAL RULE FOR CERTAIN INDIVIDUALS.— 
For purposes of the taxes imposed under this subtitle, an 
individual with net earnings from self-employment derived 
from the customer’s trade or business (including a partner 
in a partnership that is a customer) is not a work site 
employee with respect to remuneration paid by a certified 
professional employer organization. 
‘‘(g) REPORTING
REQUIREMENTS
AND
OBLIGA-
TIONS.—The Secretary shall develop such reporting and 
recordkeeping rules, regulations, and procedures as the 
Secretary determines necessary or appropriate to ensure 
compliance with this title by certified professional em-
ployer organizations or persons that have been so certified. 
Such rules shall include— 
‘‘(1) notification of the Secretary in such man-
ner as the Secretary shall prescribe in the case of 
the commencement or termination of a service con-
tract described in section 7705(e)(2) between such a 
person and a customer, and the employer identifica-
tion number of such customer,
156 
‘‘(2) such information as the Secretary deter-
mines necessary for the customer to claim the cred-
its identified in subsection (d) and the manner in 
which such information is to be provided, as pre-
scribed by the Secretary, and 
‘‘(3) such other information as the Secretary 
determines is essential to promote compliance with 
respect to the credits identified in subsection (d) and 
section 3302, and 
shall be designed in a manner which streamlines, to the 
extent possible, the application of requirements of this sec-
tion and section 7705, the exchange of information be-
tween a certified professional employer organization and 
its customers, and the reporting and recordkeeping obliga-
tions of the certified professional employer organization. 
‘‘(h) REGULATIONS.—The Secretary shall prescribe 
such regulations as may be necessary or appropriate to 
carry out the purposes of this section.’’. 
(b) CERTIFIED PROFESSIONAL EMPLOYER ORGANI-
ZATION DEFINED.—Chapter 79 is amended by adding at 
the end the following new section: 
‘‘SEC. 7705. CERTIFIED PROFESSIONAL EMPLOYER ORGANI-
ZATIONS. 
‘‘(a) IN GENERAL.—For purposes of this title, the 
term ‘certified professional employer organization’ means
158 
any change that materially affects the continuing ac-
curacy of any agreement or information that was 
previously made or provided under this subsection. 
‘‘(c) BOND
AND INDEPENDENT FINANCIAL RE-
VIEW.— 
‘‘(1) IN GENERAL.—An organization meets the 
requirements of this paragraph if such organiza-
tion— 
‘‘(A) meets the bond requirements of para-
graph (2), and 
‘‘(B) meets the independent financial re-
view requirements of paragraph (3). 
‘‘(2) BOND.— 
‘‘(A) IN
GENERAL.—A certified profes-
sional employer organization meets the require-
ments of this paragraph if the organization has 
posted a bond for the payment of taxes under 
subtitle C (in a form acceptable to the Sec-
retary) that is in an amount at least equal to 
the amount specified in subparagraph (B). 
‘‘(B) AMOUNT OF BOND.—For the period 
April 1 of any calendar year through March 31 
of the following calendar year, the amount of 
the bond required is equal to the greater of—
159 
‘‘(i) 5 percent of the organization’s li-
ability under section 3511 for taxes im-
posed by subtitle C during the preceding 
calendar 
year 
(but 
not 
to 
exceed 
$1,000,000), or 
‘‘(ii) $50,000. 
‘‘(3) INDEPENDENT
FINANCIAL
REVIEW
RE-
QUIREMENTS.—A certified professional employer or-
ganization meets the requirements of this paragraph 
if such organization— 
‘‘(A) has, as of the most recent audit date, 
caused to be prepared and provided to the Sec-
retary (in such manner as the Secretary may 
prescribe) an opinion of an independent cer-
tified public accountant as to whether the cer-
tified professional employer organization’s fi-
nancial statements are presented fairly in ac-
cordance with generally accepted accounting 
principles, and 
‘‘(B) provides to the Secretary an assertion 
regarding Federal employment tax payments 
and an examination level attestation on such 
assertion from an independent certified public 
accountant not later than the last day of the
160 
second month beginning after the end of each 
calendar quarter. 
Such assertion shall state that the organization has 
withheld and made deposits of all taxes imposed by 
chapters 21, 22, and 24 in accordance with regula-
tions imposed by the Secretary for such calendar 
quarter and such examination level attestation shall 
state that such assertion is fairly stated, in all mate-
rial respects. 
‘‘(4) CONTROLLED
GROUP
RULES.—For pur-
poses of the requirements of paragraphs (2) and (3), 
all certified professional employer organizations that 
are members of a controlled group within the mean-
ing of sections 414(b) and (c) shall be treated as a 
single organization. 
‘‘(5) FAILURE TO FILE ASSERTION AND ATTES-
TATION.—If the certified professional employer orga-
nization fails to file the assertion and attestation re-
quired by paragraph (3) with respect to any cal-
endar quarter, then the requirements of paragraph 
(3) with respect to such failure shall be treated as 
not satisfied for the period beginning on the due 
date for such attestation.
161 
‘‘(6) AUDIT DATE.—For purposes of paragraph 
(3)(A), the audit date shall be six months after the 
completion of the organization’s fiscal year. 
‘‘(d) SUSPENSION AND REVOCATION AUTHORITY.— 
The Secretary may suspend or revoke a certification of 
any person under subsection (b) for purposes of section 
3511 if the Secretary determines that such person is not 
satisfying the agreements or requirements of subsections 
(b) or (c), or fails to satisfy applicable accounting, report-
ing, payment, or deposit requirements. 
‘‘(e) WORK SITE EMPLOYEE.—For purposes of this 
title— 
‘‘(1) IN GENERAL.—The term ‘work site em-
ployee’ means, with respect to a certified profes-
sional employer organization, an individual who— 
‘‘(A) performs services for a customer pur-
suant to a contract which is between such cus-
tomer and the certified professional employer 
organization and which meets the requirements 
of paragraph (2), and 
‘‘(B) performs services at a work site 
meeting the requirements of paragraph (3). 
‘‘(2) SERVICE
CONTRACT
REQUIREMENTS.—A 
contract meets the requirements of this paragraph 
with respect to an individual performing services for
162 
a customer if such contract is in writing and pro-
vides that the certified professional employer organi-
zation shall— 
‘‘(A) assume responsibility for payment of 
wages to such individual, without regard to the 
receipt or adequacy of payment from the cus-
tomer for such services, 
‘‘(B) assume responsibility for reporting, 
withholding, and paying any applicable taxes 
under subtitle C, with respect to such individ-
ual’s wages, without regard to the receipt or 
adequacy of payment from the customer for 
such services, 
‘‘(C) assume responsibility for any em-
ployee benefits which the service contract may 
require the certified professional employer orga-
nization to provide, without regard to the re-
ceipt or adequacy of payment from the cus-
tomer for such benefits, 
‘‘(D) assume responsibility for recruiting, 
hiring, and firing workers in addition to the 
customer’s responsibility for recruiting, hiring, 
and firing workers, 
‘‘(E) maintain employee records relating to 
such individual, and
163 
‘‘(F) agree to be treated as a certified pro-
fessional employer organization for purposes of 
section 3511 with respect to such individual. 
‘‘(3) WORK SITE COVERAGE REQUIREMENT.— 
The requirements of this paragraph are met with re-
spect to an individual if at least 85 percent of the 
individuals performing services for the customer at 
the work site where such individual performs serv-
ices are subject to 1 or more contracts with the cer-
tified professional employer organization which meet 
the requirements of paragraph (2) (but not taking 
into account those individuals who are excluded em-
ployees within the meaning of section 414(q)(5)). 
‘‘(f) PUBLIC
DISCLOSURE.—The Secretary shall 
make available to the public the name and address of— 
‘‘(1) each person certified as a professional em-
ployer organization under subsection (a), and 
‘‘(2) each person whose certification as a pro-
fessional employer organization is suspended or re-
voked under subsection (d). 
‘‘(g) DETERMINATION OF EMPLOYMENT STATUS.— 
Except to the extent necessary for purposes of section 
3511, nothing in this section shall be construed to affect 
the determination of who is an employee or employer for 
purposes of this title.
164 
‘‘(h) REGULATIONS.—The Secretary shall prescribe 
such regulations as may be necessary or appropriate to 
carry out the purposes of this section.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 3302 is amended by adding at the 
end the following new subsection: 
‘‘(h) TREATMENT OF CERTIFIED PROFESSIONAL EM-
PLOYER ORGANIZATIONS.—If a certified professional em-
ployer organization (as defined in section 7705), or a cus-
tomer of such organization, makes a contribution to the 
State’s unemployment fund with respect to wages paid to 
a work site employee, such certified professional employer 
organization shall be eligible for the credits available 
under this section with respect to such contribution.’’. 
(2) Section 3303(a) is amended— 
(A) by striking the period at the end of 
paragraph (3) and inserting ‘‘; and’’ and by in-
serting after paragraph (3) the following new 
paragraph: 
‘‘(4) if the taxpayer is a certified professional 
employer organization (as defined in section 7705) 
that is treated as the employer under section 3511, 
such certified professional employer organization is 
permitted to collect and remit, in accordance with 
paragraphs (1), (2), and (3), contributions during
165 
the taxable year to the State unemployment fund 
with respect to a work site employee.’’, and 
(B) in the last sentence— 
(i) by striking ‘‘paragraphs (1), (2), 
and (3)’’ and inserting ‘‘paragraphs (1), 
(2), (3), and (4)’’, and 
(ii) by striking ‘‘paragraph (1), (2), or 
(3)’’ and inserting ‘‘paragraph (1), (2), 
(3), or (4)’’. 
(3) Section 6053(c) is amended by adding at 
the end the following new paragraph: 
‘‘(8) CERTIFIED PROFESSIONAL EMPLOYER OR-
GANIZATIONS.—For purposes of any report required 
by this subsection, in the case of a certified profes-
sional employer organization that is treated under 
section 3511 as the employer of a work site em-
ployee, the customer with respect to whom a work 
site employee performs services shall be the employer 
for purposes of reporting under this section and the 
certified professional employer organization shall 
furnish to the customer and the Secretary any infor-
mation the Secretary prescribes as necessary to com-
plete such reporting no later than such time as the 
Secretary shall prescribe.’’.
166 
(4) Section 6652 is amended by adding at the 
end the following new subsection: 
‘‘(n) FAILURE
TO
MAKE
REPORTS
REQUIRED 
UNDER SECTIONS 3511, 6053(c)(8), AND 7705.—In the 
case of a failure to make a report required under section 
3511, 6053(c)(8), or 7705 which contains the information 
required by such section on the date prescribed therefor 
(determined with regard to any extension of time for fil-
ing), there shall be paid (on notice and demand by the 
Secretary and in the same manner as tax) by the person 
failing to make such report, an amount equal to $50 for 
each report with respect to which there was such a failure. 
In the case of any failure due to negligence or intentional 
disregard the preceding sentence shall be applied by sub-
stituting ‘$100’ for ‘$50’.’’. 
(d) CLERICAL AMENDMENTS.— 
(1) The table of sections for chapter 25 is 
amended by adding at the end the following new 
item: 
‘‘Sec. 3511. Certified professional employer organizations.’’. 
(2) The table of sections for chapter 79 is 
amended by inserting after the item relating to sec-
tion 7704 the following new item: 
‘‘Sec. 7705. Certified professional employer organizations.’’. 
(f) USER FEES.—Section 7528(b) is amended by 
adding at the end the following new paragraph:
167 
‘‘(4) CERTIFIED PROFESSIONAL EMPLOYER OR-
GANIZATIONS.—The fee charged under the program 
in connection with the certification by the Secretary 
of a professional employer organization under sec-
tion 7705 shall be an annual fee not to exceed 
$1,000 per year.’’. 
(g) EFFECTIVE DATES.— 
(1) IN GENERAL.—The amendments made by 
this section shall apply with respect to wages for 
services performed on or after January 1 of the first 
calendar year beginning more than 12 months after 
the date of the enactment of this Act. 
(2) CERTIFICATION PROGRAM.—The Secretary 
of the Treasury shall establish the certification pro-
gram described in section 7705(b) of the Internal 
Revenue Code of 1986, as added by subsection (b), 
not later than 6 months before the effective date de-
termined under paragraph (1). 
(h) NO INFERENCE.—Nothing contained in this sec-
tion or the amendments made by this section shall be con-
strued to create any inference with respect to the deter-
mination of who is an employee or employer— 
(1) for Federal tax purposes (other than the 
purposes set forth in the amendments made by this 
section), or
168 
(2) for purposes of any other provision of law. 
SEC. 207. EXCLUSION OF DIVIDENDS FROM CONTROLLED 
FOREIGN CORPORATIONS FROM THE DEFINI-
TION OF PERSONAL HOLDING COMPANY IN-
COME FOR PURPOSES OF THE PERSONAL 
HOLDING COMPANY RULES. 
(a) IN GENERAL.—Section 543(a)(1) is amended— 
(1) by redesignating subparagraphs (C) and 
(D) as subparagraphs (D) and (E), respectively, and 
(2) by inserting after subparagraph (B) the fol-
lowing: 
‘‘(C) dividends received by a United States 
shareholder (as defined in section 951(b)) from 
a controlled foreign corporation (as defined in 
section 957(a)),’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this Act shall apply to taxable years ending on or after 
the date of the enactment of this Act. 
SEC. 208. INFLATION ADJUSTMENT FOR CERTAIN CIVIL 
PENALTIES UNDER THE INTERNAL REVENUE 
CODE OF 1986. 
(a) FAILURE TO FILE TAX RETURN OR PAY TAX.— 
Section 6651 is amended by adding at the end the fol-
lowing new subsection: 
‘‘(i) ADJUSTMENT FOR INFLATION.—
169 
‘‘(1) IN GENERAL.—In the case of any return 
required to be filed in a calendar year beginning 
after 2014, the $135 dollar amount under subsection 
(a) shall be increased by such dollar amount multi-
plied by the cost-of-living adjustment determined 
under section 1(f)(3) determined by substituting 
‘calendar year 2013’ for ‘calendar year 1992’ in sub-
paragraph (B) thereof. 
‘‘(2) ROUNDING.—If any amount adjusted 
under paragraph (1) is not a multiple of $5, such 
amount shall be rounded to the next lowest multiple 
of $5.’’. 
(b) FAILURE TO FILE CERTAIN INFORMATION RE-
TURNS, REGISTRATION STATEMENTS, ETC.— 
(1) IN GENERAL.—Section 6652(c) is amended 
by adding at the end the following new paragraph: 
‘‘(6) ADJUSTMENT FOR INFLATION.— 
‘‘(A) IN
GENERAL.—In the case of any 
failure relating to a return required to be filed 
in a calendar year beginning after 2014, each 
of the dollar amounts under paragraphs (1), 
(2), and (3) shall be increased by such dollar 
amount multiplied by the cost-of-living adjust-
ment determined under section 1(f)(3) deter-
mined by substituting ‘calendar year 2013’ for
170 
‘calendar year 1992’ in subparagraph (B) 
thereof. 
‘‘(B) ROUNDING.—If any amount adjusted 
under subparagraph (A)— 
‘‘(i) is not less than $5,000 and is not 
a multiple of $500, such amount shall be 
rounded to the next lowest multiple of 
$500, and 
‘‘(ii) is not described in clause (i) and 
is not a multiple of $5, such amount shall 
be rounded to the next lowest multiple of 
$5.’’. 
(2) CONFORMING AMENDMENTS.— 
(A) 
The 
last 
sentence 
of 
section 
6652(c)(1)(A) is amended by striking ‘‘the first 
sentence of this subparagraph shall be applied 
by substituting ‘$100’ for ‘$20’ and’’ and in-
serting ‘‘in applying the first sentence of this 
subparagraph, the amount of the penalty for 
each day during which a failure continues shall 
be $100 in lieu of the amount otherwise speci-
fied, and’’. 
(B) Section 6652(c)(2)(C)(ii) is amended 
by striking ‘‘the first sentence of paragraph 
(1)(A)’’ and all that follows and inserting ‘‘in
171 
applying the first sentence of paragraph (1)(A), 
the amount of the penalty for each day during 
which a failure continues shall be $100 in lieu 
of the amount otherwise specified, and in lieu of 
applying the second sentence of paragraph 
(1)(A), the maximum penalty under paragraph 
(1)(A) shall not exceed $50,000, and’’. 
(c) OTHER ASSESSABLE PENALTIES WITH RESPECT 
TO THE PREPARATION OF TAX RETURNS FOR OTHER 
PERSONS.—Section 6695 is amended by adding at the end 
the following new subsection: 
‘‘(h) ADJUSTMENT FOR INFLATION.— 
‘‘(1) IN GENERAL.—In the case of any failure 
relating to a return or claim for refund filed in a 
calendar year beginning after 2014, each of the dol-
lar amounts under subsections (a), (b), (c), (d), (e), 
(f), and (g) shall be increased by such dollar amount 
multiplied by the cost-of-living adjustment deter-
mined under section 1(f)(3) determined by sub-
stituting ‘calendar year 2013’ for ‘calendar year 
1992’ in subparagraph (B) thereof. 
‘‘(2) ROUNDING.—If any amount adjusted 
under subparagraph (A)—
172 
‘‘(A) is not less than $5,000 and is not a 
multiple of $500, such amount shall be rounded 
to the next lowest multiple of $500, and 
‘‘(B) is not described in clause (i) and is 
not a multiple of $5, such amount shall be 
rounded to the next lowest multiple of $5.’’. 
(d) FAILURE TO FILE PARTNERSHIP RETURN.—Sec-
tion 6698 is amended by adding at the end the following 
new subsection: 
‘‘(e) ADJUSTMENT FOR INFLATION.— 
‘‘(1) IN GENERAL.—In the case of any return 
required to be filed in a calendar year beginning 
after 2014, the $195 dollar amount under subsection 
(b)(1) shall be increased by such dollar amount mul-
tiplied by the cost-of-living adjustment determined 
under section 1(f)(3) determined by substituting 
‘calendar year 2013’ for ‘calendar year 1992’ in sub-
paragraph (B) thereof. 
‘‘(2) ROUNDING.—If any amount adjusted 
under paragraph (1) is not a multiple of $5, such 
amount shall be rounded to the next lowest multiple 
of $5.’’. 
(e) FAILURE TO FILE S CORPORATION RETURN.— 
Section 6699 is amended by adding at the end the fol-
lowing new subsection:
173 
‘‘(e) ADJUSTMENT FOR INFLATION.— 
‘‘(1) IN GENERAL.—In the case of any return 
required to be filed in a calendar year beginning 
after 2014, the $195 dollar amount under subsection 
(b)(1) shall be increased by such dollar amount mul-
tiplied by the cost-of-living adjustment determined 
under section 1(f)(3) determined by substituting 
‘calendar year 2013’ for ‘calendar year 1992’ in sub-
paragraph (B) thereof. 
‘‘(2) ROUNDING.—If any amount adjusted 
under paragraph (1) is not a multiple of $5, such 
amount shall be rounded to the next lowest multiple 
of $5.’’. 
(f) FAILURE TO FILE CORRECT INFORMATION RE-
TURNS.—Section 6721(f)(1) is amended by striking ‘‘For 
each fifth calendar year beginning after 2012’’ and insert-
ing ‘‘In the case of any failure relating to a return re-
quired to be filed in a calendar year beginning after 
2014’’. 
(g) FAILURE TO FURNISH CORRECT PAYEE STATE-
MENTS.—Section 6722(f)(1) is amended by striking ‘‘For 
each fifth calendar year beginning after 2012’’ and insert-
ing ‘‘In the case of any failure relating to a statement 
required to be furnished in a calendar year beginning after 
2014’’.
174 
(h) EFFECTIVE DATE.—The amendments made by 
this section shall apply to returns required to be filed after 
December 31, 2014. 
SEC. 209. INCREASE IN CONTINUOUS LEVY. 
(a) IN GENERAL.—Paragraph (3) of section 6331(h) 
is amended by striking the period at the end and inserting 
‘‘and by substituting ‘30 percent’ for ‘15 percent’ in the 
case of any specified payment due to a Medicare provider 
or supplier under title XVIII of the Social Security Act.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to payments made after 180 days 
after the date of the enactment of this Act. 
Passed the House of Representatives December 3, 
2014. 
Attest: 
Clerk.
113TH CONGRESS 
2D SESSION 
H. R. 5771 
AN ACT 
To amend the Internal Revenue Code of 1986 to 
extend certain expiring provisions and make tech-
nical corrections, to amend the Internal Revenue 
Code of 1986 to provide for the tax treatment of 
ABLE accounts established under State pro-
grams for the care of family members with dis-
abilities, and for other purposes.