I 
114TH CONGRESS 
2D SESSION 
H. R. 5550 
To amend the Internal Revenue Code of 1986 to impose an excise tax 
on United States dollar clearing done for the benefit of Iran or Iranian 
persons. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 21, 2016 
Mr. ROSKAM (for himself, Mr. BOUSTANY, Mr. TIBERI, Mr. BUCHANAN, Mr. 
SAM JOHNSON of Texas, Mr. REICHERT, Mr. YOUNG of Indiana, Mr. 
NUNES, and Mrs. BLACK) introduced the following bill; which was re-
ferred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to impose 
an excise tax on United States dollar clearing done for 
the benefit of Iran or Iranian persons. 
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 ‘‘No Dollars for Aya-
tollahs Act’’. 
VerDate Sep 11 2014 
01:50 Jun 23, 2016
Jkt 059200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H5550.IH
H5550
rfrederick on DSK6VPTVN1PROD with BILLS
SEC. 2. EXCISE TAX ON DOLLAR CLEARING TRANSACTIONS 
WITH RESPECT TO IRAN. 
(a) IN GENERAL.—Subtitle D of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new chapter: 
‘‘CHAPTER 50A—CLEARING 
TRANSACTIONS WITH RESPECT TO IRAN 
‘‘Sec. 5000D. Imposition of tax on dollar clearing transactions with respect to 
Iran. 
‘‘SEC. 5000D. IMPOSITION OF TAX ON DOLLAR CLEARING 
TRANSACTIONS WITH RESPECT TO IRAN. 
‘‘(a) IMPOSITION OF TAX.—There is hereby imposed 
on any United States person who clears or transfers 
United States dollars for the direct or indirect benefit of 
the Government of Iran or any Iranian person a tax equal 
to 100 percent of the dollar amount cleared or transferred. 
‘‘(b) TRANSACTION
BY CERTAIN RELATED ENTI-
TIES.—If any United States dollars are so cleared or 
transferred by— 
‘‘(1) a foreign member of a United States per-
son’s worldwide affiliated group, or 
‘‘(2) a foreign person who— 
‘‘(A) is not a member of a United States 
person’s worldwide affiliated group, but 
VerDate Sep 11 2014 
01:50 Jun 23, 2016
Jkt 059200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H5550.IH
H5550
rfrederick on DSK6VPTVN1PROD with BILLS
‘‘(B) has a correspondent account or pay-
able-through account for or with such a mem-
ber or a United States person, 
such dollars shall be treated for purposes of subsection 
(a) as being cleared or transferred by the United States 
person. The preceding sentence shall apply with respect 
to a foreign person described in paragraph (2) only if the 
member or United States person, as the case may be, for 
or with whom the account is maintained knew or had rea-
son to know such dollars were being so cleared or trans-
ferred. 
‘‘(c) THRESHOLD LIMITATION.— 
‘‘(1) IN GENERAL.—The tax imposed by sub-
section (a) shall only apply with respect to a United 
States person for a calendar year to the extent the 
dollar amounts so cleared or transferred during the 
calendar year by such United States person (includ-
ing any such amounts treated under subsection (b) 
as cleared or transferred by such person) exceed 
$1,000,000. 
‘‘(2) MEMBERS OF GROUP.—For purposes of 
paragraph (1), amounts cleared or transferred by a 
non-foreign member of such person’s worldwide af-
filiated group shall be treated as cleared or trans-
ferred by such person. 
VerDate Sep 11 2014 
01:50 Jun 23, 2016
Jkt 059200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H5550.IH
H5550
rfrederick on DSK6VPTVN1PROD with BILLS
‘‘(d) DEFINITIONS.—For purposes of this section— 
‘‘(1) WORLDWIDE
AFFILIATED
GROUP.—The 
term ‘worldwide affiliated group’ means an affiliated 
group as defined in section 1504(a), determined— 
‘‘(A) by substituting ‘more than 50 per-
cent’ for ‘at least 80 percent’ each place it ap-
pears, and 
‘‘(B) without regard to section 1504(b). 
A partnership or any other entity (other than a cor-
poration) shall be treated as a member of a world-
wide affiliated group if such entity is controlled 
(within the meaning of section 954(d)(3)) by mem-
bers of such group (including any entity treated as 
a member of such group by reason of this sentence). 
‘‘(2) CORRESPONDENT
ACCOUNT.—The term 
‘correspondent account’ means an account estab-
lished to receive deposits from, or make payments on 
behalf of, a financial institution or handle other fi-
nancial transactions related to such institution. 
‘‘(3) PAYABLE-THROUGH ACCOUNT.—The term 
‘payable-through account’ means an account, includ-
ing a transaction account (as defined in section 
19(b)(1)(C) of the Federal Reserve Act), opened at 
a depository institution by another financial institu-
tion by means of which the financial institution per-
VerDate Sep 11 2014 
01:50 Jun 23, 2016
Jkt 059200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H5550.IH
H5550
rfrederick on DSK6VPTVN1PROD with BILLS
mits its customers to engage, either directly or 
through a subaccount, in banking activities usually 
in connection with the business of banking. 
‘‘(4) ACCOUNT.—The term ‘account’ means a 
formal banking or business relationship established 
to provide regular services, dealings, and other fi-
nancial transactions and includes a demand deposit, 
savings deposit, or other transaction or asset ac-
count and a credit account or other extension of 
credit. 
‘‘(5) FINANCIAL INSTITUTION.—The term ‘fi-
nancial institution’ shall have the meaning given 
such term under section 5312(a)(2) of title 31, 
United States Code. 
‘‘(6) IRANIAN PERSON.—The term ‘Iranian per-
son’ means— 
‘‘(A) any person in Iran, 
‘‘(B) any citizen or resident of Iran, 
‘‘(C) any foreign partnership or foreign 
corporation which is organized or operated in 
Iran (or is a member of such a person’s world-
wide affiliated group), 
‘‘(D) any foreign trust if— 
VerDate Sep 11 2014 
01:50 Jun 23, 2016
Jkt 059200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H5550.IH
H5550
rfrederick on DSK6VPTVN1PROD with BILLS
‘‘(i) a court within Iran is able to ex-
ercise primary supervision over the admin-
istration of the trust, and 
‘‘(ii) one or more persons described in 
subparagraph (A) or (B) have the author-
ity to control all substantial decisions of 
the trust, and 
‘‘(E) any foreign estate a beneficiary of 
which is a person described in subparagraph 
(A). 
‘‘(e) SPECIAL RULES.— 
‘‘(1) CERTAIN LICENSED TRANSACTIONS.—This 
section shall not apply in the case of a transaction 
authorized under part 535, 560, or 561 of title 31, 
Code of Federal Regulations, as in effect on June 1, 
2016. 
‘‘(2) HUMANITARIAN
ASSISTANCE.—This sec-
tion shall not apply in the case of any transaction 
permitted— 
‘‘(A) under section 413 of the Iran Threat 
Reduction and Syria Human Rights Act of 
2012, or 
‘‘(B) under a license issued under the 
International Emergency Economic Powers Act 
(50 U.S.C. 1701 et seq.) if— 
VerDate Sep 11 2014 
01:50 Jun 23, 2016
Jkt 059200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H5550.IH
H5550
rfrederick on DSK6VPTVN1PROD with BILLS
‘‘(i) such transaction relates solely 
to— 
‘‘(I) the provision of agricultural 
commodities, food, medicine, or med-
ical devices to Iran, or 
‘‘(II) the provision of humani-
tarian assistance to the people of 
Iran, and 
‘‘(ii) the President submits a copy of 
the license to the Committee on Ways and 
Means of the House of Representatives 
and the Committee on Finance of the Sen-
ate, the Committee on Financial Services 
of the House of Representatives and the 
Committee on Banking, Housing, and 
Urban Affairs of the Senate, and the Com-
mittee on Foreign Affairs of the House of 
Representatives and the Committee on 
Foreign Relations of the Senate. 
‘‘(3) INTELLIGENCE ACTIVITIES.—This section 
shall not apply in the case of intelligence activities 
subject to reporting requirements under title V of 
the National Security Act of 1947 (50 U.S.C. 3091 
et seq.). 
VerDate Sep 11 2014 
01:50 Jun 23, 2016
Jkt 059200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H5550.IH
H5550
rfrederick on DSK6VPTVN1PROD with BILLS
‘‘(4) JOINT AND SEVERAL LIABILITY.—If more 
than 1 person is liable under subsection (a) or (b) 
with respect to a dollar clearing or transferring 
transaction, all such persons shall be jointly and sev-
erally liable under such subsection with respect to 
such transaction.’’. 
(b) CLERICAL AMENDMENT.—The table of chapters 
for subtitle D of such Code is amended by adding at the 
end the following new item: 
‘‘CHAPTER 50A. CLEARING TRANSACTIONS WITH RESPECT TO IRAN’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to transactions after June 21, 
2016. 
Æ 
VerDate Sep 11 2014 
01:50 Jun 23, 2016
Jkt 059200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6301
E:\BILLS\H5550.IH
H5550
rfrederick on DSK6VPTVN1PROD with BILLS