I 
113TH CONGRESS 
1ST SESSION H. R. 1554 
To restrict the use of offshore tax havens and abusive tax shelters to 
inappropriately avoid Federal taxation, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 15, 2013 
Mr. DOGGETT (for himself, Ms. BASS, Mr. BECERRA, Mr. BLUMENAUER, Mr. 
CAPUANO, Ms. CHU, Mr. CICILLINE, Mr. CONYERS, Mr. CUMMINGS, Mr. 
DEFAZIO, Ms. DEGETTE, Ms. DELAURO, Mr. DEUTCH, Mr. DINGELL, 
Ms. EDWARDS, Mr. ELLISON, Mr. FARR, Mr. GENE GREEN of Texas, 
Mr. GRIJALVA, Mr. HIGGINS, Mr. HUFFMAN, Ms. EDDIE BERNICE 
JOHNSON of Texas, Mr. JOHNSON of Georgia, Mr. LARSON of Con-
necticut, Ms. LEE of California, Mr. LOEBSACK, Mr. LYNCH, Mr. MAR-
KEY, Ms. MCCOLLUM, Mr. MCDERMOTT, Mr. MCGOVERN, Mr. GEORGE 
MILLER of California, Ms. MOORE, Mr. MORAN, Mr. PASCRELL, Mr. 
PETERS of Michigan, Mr. RUSH, Ms. SCHAKOWSKY, Mr. SHERMAN, Ms. 
SLAUGHTER, Mr. TIERNEY, Mr. TONKO, Ms. TSONGAS, Mr. VAN HOL-
LEN, Mr. WELCH, Mr. YARMUTH, Mr. LANGEVIN, Mr. HOLT, Mr. LIPIN-
SKI, Mr. GUTIERREZ, Mr. LEWIS, Mr. GARAMENDI, Mr. PAYNE, and Mr. 
COHEN) introduced the following bill; which was referred to the Com-
mittee on Ways and Means, and in addition to the Committee on Finan-
cial Services, for a period to be subsequently determined by the Speaker, 
in each case for consideration of such provisions as fall within the juris-
diction of the committee concerned 
A BILL 
To restrict the use of offshore tax havens and abusive tax 
shelters to inappropriately avoid Federal taxation, and 
for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE; ETC. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Stop Tax Haven Abuse Act’’. 
(b) AMENDMENT OF 1986 CODE.—Except as other-
wise expressly provided, whenever in this Act an amend-
ment or repeal is expressed in terms of an amendment 
to, or repeal of, a section or other provision, the reference 
shall be considered to be made to a section or other provi-
sion of the Internal Revenue Code of 1986. 
(c) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows: 
Sec. 1. Short title; etc. 
TITLE I—DETERRING THE USE OF TAX HAVENS FOR TAX 
EVASION 
Sec. 101. Authorizing special measures against foreign jurisdictions, financial 
institutions, and others that significantly impede United States 
tax enforcement. 
Sec. 102. Strengthening the Foreign Account Tax Compliance Act (FATCA). 
Sec. 103. Treatment of foreign corporations managed and controlled in the 
United States as domestic corporations. 
Sec. 104. Reporting United States beneficial owners of foreign owned financial 
accounts. 
Sec. 105. Swap payments made from the United States to persons offshore. 
TITLE II—OTHER MEASURES TO COMBAT TAX HAVEN AND TAX 
SHELTER ABUSES 
Sec. 201. Country-by-country reporting. 
Sec. 202. Penalty for failing to disclose offshore holdings. 
Sec. 203. Deadline for anti-money laundering rule for investment advisers. 
Sec. 204. Anti-money laundering requirements for formation agents. 
Sec. 205. Strengthening John Doe summons proceedings. 
Sec. 206. Improving enforcement of foreign financial account reporting. 
TITLE III—COMBATING TAX SHELTER PROMOTERS 
Sec. 301. Penalty for promoting abusive tax shelters. 
Sec. 302. Penalty for aiding and abetting the understatement of tax liability. 
Sec. 303. Prohibited fee arrangement. 
Sec. 304. Preventing tax shelter activities by financial institutions. 
Sec. 305. Information sharing for enforcement purposes. 
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Sec. 306. Disclosure of information to Congress. 
Sec. 307. Tax opinion standards for tax practitioners. 
TITLE I—DETERRING THE USE 
OF TAX HAVENS FOR TAX 
EVASION 
SEC. 101. AUTHORIZING SPECIAL MEASURES AGAINST FOR-
EIGN JURISDICTIONS, FINANCIAL INSTITU-
TIONS, AND OTHERS THAT SIGNIFICANTLY 
IMPEDE UNITED STATES TAX ENFORCEMENT. 
Section 5318A of title 31, United States Code, is 
amended— 
(1) by striking the section heading and insert-
ing the following: 
‘‘§ 5318A. Special measures for jurisdictions, financial 
institutions, or international transactions 
that are of primary money laundering 
concern or significantly impede United 
States tax enforcement’’; 
(2) in subsection (a), by striking the subsection 
heading and inserting the following: 
‘‘(a) SPECIAL MEASURES TO COUNTER MONEY 
LAUNDERING AND EFFORTS TO SIGNIFICANTLY IMPEDE 
UNITED STATES TAX ENFORCEMENT.—’’; 
(3) in subsection (c)— 
(A) by striking the subsection heading and 
inserting the following: 
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‘‘(c) CONSULTATIONS
AND INFORMATION TO BE 
CONSIDERED IN FINDING JURISDICTIONS, INSTITUTIONS, 
TYPES OF ACCOUNTS, OR TRANSACTIONS TO BE OF PRI-
MARY MONEY LAUNDERING CONCERN OR TO BE SIGNIFI-
CANTLY
IMPEDING
UNITED
STATES
TAX
ENFORCE-
MENT.—’’; and 
(B) by inserting at the end of paragraph 
(2) thereof the following new subparagraph: 
‘‘(C) OTHER CONSIDERATIONS.—The fact 
that a jurisdiction or financial institution is co-
operating with the United States on imple-
menting the requirements specified in chapter 4 
of the Internal Revenue Code of 1986 may be 
favorably considered in evaluating whether such 
jurisdiction or financial institution is signifi-
cantly impeding United States tax enforce-
ment.’’; 
(4) in subsection (a)(1), by inserting ‘‘or is sig-
nificantly impeding United States tax enforcement’’ 
after ‘‘primary money laundering concern’’; 
(5) in subsection (a)(4)— 
(A) in subparagraph (A)— 
(i) by inserting ‘‘in matters involving 
money laundering,’’ before ‘‘shall consult’’; 
and 
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(ii) by striking ‘‘and’’ at the end; 
(B) by redesignating subparagraph (B) as 
subparagraph (C); and 
(C) by inserting after subparagraph (A) 
the following: 
‘‘(B) in matters involving United States 
tax enforcement, shall consult with the Commis-
sioner of the Internal Revenue, the Secretary of 
State, the Attorney General of the United 
States, and in the sole discretion of the Sec-
retary, such other agencies and interested par-
ties as the Secretary may find to be appro-
priate; and’’; 
(6) in each of paragraphs (1)(A), (2), (3), and 
(4) of subsection (b), by inserting ‘‘or to be signifi-
cantly impeding United States tax enforcement’’ 
after ‘‘primary money laundering concern’’ each 
place that term appears; 
(7) in subsection (b), by striking paragraph (5) 
and inserting the following: 
‘‘(5) PROHIBITIONS OR CONDITIONS ON OPEN-
ING OR MAINTAINING CERTAIN CORRESPONDENT OR 
PAYABLE-THROUGH
ACCOUNTS
OR
AUTHORIZING 
CERTAIN PAYMENT CARDS.—If the Secretary finds a 
jurisdiction outside of the United States, 1 or more 
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financial institutions operating outside of the United 
States, or 1 or more classes of transactions within 
or involving a jurisdiction outside of the United 
States to be of primary money laundering concern or 
to be significantly impeding United States tax en-
forcement, the Secretary, in consultation with the 
Secretary of State, the Attorney General of the 
United States, and the Chairman of the Board of 
Governors of the Federal Reserve System, may pro-
hibit, or impose conditions upon— 
‘‘(A) the opening or maintaining in the 
United States of a correspondent account or 
payable-through account; or 
‘‘(B) the authorization, approval, or use in 
the United States of a credit card, charge card, 
debit card, or similar credit or debit financial 
instrument by any domestic financial institu-
tion, financial agency, or credit card company 
or association, for or on behalf of a foreign 
banking institution, if such correspondent ac-
count, payable-through account, credit card, 
charge card, debit card, or similar credit or 
debit financial instrument, involves any such ju-
risdiction or institution, or if any such trans-
action may be conducted through such cor-
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respondent account, payable-through account, 
credit card, charge card, debit card, or similar 
credit or debit financial instrument.’’; 
(8) in subsection (c)(1), by inserting ‘‘or is sig-
nificantly impeding United States tax enforcement’’ 
after ‘‘primary money laundering concern’’; 
(9) in subsection (c)(2)(A)— 
(A) in clause (ii), by striking ‘‘bank secrecy 
or special regulatory advantages’’ and inserting 
‘‘bank, tax, corporate, trust, or financial secrecy 
or regulatory advantages’’; 
(B) in clause (iii), by striking ‘‘supervisory 
and counter-money’’ and inserting ‘‘supervisory, 
international tax enforcement, and counter- 
money’’; 
(C) in clause (v), by striking ‘‘banking or 
secrecy’’ and inserting ‘‘banking, tax, or se-
crecy’’; and 
(D) in clause (vi), by inserting ‘‘, tax trea-
ty, or tax information exchange agreement’’ 
after ‘‘treaty’’; 
(10) in subsection (c)(2)(B)— 
(A) in clause (i), by inserting ‘‘or tax eva-
sion’’ after ‘‘money laundering’’; and 
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(B) in clause (iii), by inserting ‘‘, tax eva-
sion,’’ after ‘‘money laundering’’; and 
(11) in subsection (d), by inserting ‘‘involving 
money laundering, and shall notify, in writing, the 
Committee on Finance of the Senate and the Com-
mittee on Ways and Means of the House of Rep-
resentatives of any such action involving United 
States tax enforcement’’ after ‘‘such action’’. 
SEC. 102. STRENGTHENING THE FOREIGN ACCOUNT TAX 
COMPLIANCE ACT (FATCA). 
(a) REPORTING ACTIVITIES WITH RESPECT TO PAS-
SIVE
FOREIGN
INVESTMENT
COMPANIES.—Section 
1298(f) is amended by inserting ‘‘, or who directly or indi-
rectly forms, transfers assets to, is a beneficiary of, has 
a beneficial interest in, or receives money or property or 
the use thereof from,’’ after ‘‘shareholder of’’. 
(b) WITHHOLDABLE PAYMENTS TO FOREIGN FINAN-
CIAL INSTITUTIONS.—Section 1471(d) is amended— 
(1) by inserting ‘‘or transaction’’ after ‘‘any de-
pository’’ in paragraph (2)(A), and 
(2) by striking ‘‘or any interest’’ and all that 
follows in paragraph (5)(C) and inserting ‘‘deriva-
tives, or any interest (including a futures or forward 
contract, swap, or option) in such securities, part-
nership interests, commodities, or derivatives.’’. 
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(c) WITHHOLDABLE PAYMENTS TO OTHER FOREIGN 
FINANCIAL INSTITUTIONS.—Section 1472 is amended— 
(1) by inserting ‘‘as a result of any customer 
identification, anti-money laundering, anti-corrup-
tion, or similar obligation to identify account hold-
ers,’’ after ‘‘reason to know,’’ in subsection (b)(2), 
and 
(2) by inserting ‘‘as posing a low risk of tax 
evasion’’ after ‘‘this subsection’’ in subsection 
(c)(1)(G). 
(d) DEFINITIONS.—Clauses (i) and (ii) of section 
1473(2)(A) are each amended by inserting ‘‘or as a bene-
ficial owner’’ after ‘‘indirectly’’. 
(e) SPECIAL RULES.—Section 1474(c) is amended— 
(1) by inserting ‘‘, except that information pro-
vided under sections 1471(c) or 1472(b) may be dis-
closed to any Federal law enforcement agency, upon 
request or upon the initiation of the Secretary, to in-
vestigate or address a possible violation of United 
States law’’ after ‘‘shall apply’’ in paragraph (1), 
and 
(2) by inserting ‘‘, or has had an agreement 
terminated under such section,’’ after ‘‘section 
1471(b)’’ in paragraph (2). 
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(f) INFORMATION WITH RESPECT TO FOREIGN FI-
NANCIAL ASSETS.—Section 6038D(a) is amended by in-
serting ‘‘ownership or beneficial ownership’’ after ‘‘holds 
any’’. 
(g) ESTABLISHING PRESUMPTIONS
FOR ENTITIES 
AND TRANSACTIONS INVOLVING NON-FATCA INSTITU-
TIONS.— 
(1) PRESUMPTIONS FOR TAX PURPOSES.— 
(A) IN GENERAL.—Chapter 76 is amended 
by inserting after section 7491 the following 
new subchapter: 
‘‘Subchapter F—Presumptions for Certain 
Legal Proceedings 
‘‘Sec. 7492. Presumptions pertaining to entities and transactions involving non- 
FATCA institutions. 
‘‘SEC. 7492. PRESUMPTIONS PERTAINING TO ENTITIES AND 
TRANSACTIONS INVOLVING NON-FATCA IN-
STITUTIONS. 
‘‘(a) CONTROL.—For purposes of any United States 
civil judicial or administrative proceeding to determine or 
collect tax, there shall be a rebuttable presumption that 
a United States person (other than an entity with shares 
regularly traded on an established securities market) who, 
directly or indirectly, formed, transferred assets to, was 
a beneficiary of, had a beneficial interest in, or received 
money or property or the use thereof from an entity, in-
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cluding a trust, corporation, limited liability company, 
partnership, or foundation (other than an entity with 
shares regularly traded on an established securities mar-
ket), that holds an account, or in any other manner has 
assets, in a non-FATCA institution, exercised control over 
such entity. The presumption of control created by this 
subsection shall not be applied to prevent the Secretary 
from determining or arguing the absence of control. 
‘‘(b) TRANSFERS OF INCOME.—For purposes of any 
United States civil judicial or administrative proceeding 
to determine or collect tax, there shall be a rebuttable pre-
sumption that any amount or thing of value received by 
a United States person (other than an entity with shares 
regularly traded on an established securities market) di-
rectly or indirectly from an account or from an entity 
(other than an entity with shares regularly traded on an 
established securities market) that holds an account, or 
in any other manner has assets, in a non-FATCA institu-
tion, constitutes income of such person taxable in the year 
of receipt; and any amount or thing of value paid or trans-
ferred by or on behalf of a United States person (other 
than an entity with shares regularly traded on an estab-
lished securities market) directly or indirectly to an ac-
count, or entity (other than an entity with shares regularly 
traded on an established securities market) that holds an 
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account, or in any other manner has assets, in a non- 
FATCA institution, represents previously unreported in-
come of such person taxable in the year of the transfer. 
‘‘(c) REBUTTING
THE PRESUMPTIONS.—The pre-
sumptions established in this section may be rebutted only 
by clear and convincing evidence, including detailed docu-
mentary, testimonial, and transactional evidence, estab-
lishing that— 
‘‘(1) in subsection (a), such taxpayer exercised 
no control, directly or indirectly, over account or en-
tity at the time in question, and 
‘‘(2) in subsection (b), such amounts or things 
of value did not represent income related to such 
United States person. 
Any court having jurisdiction of a civil proceeding in which 
control of such an offshore account or offshore entity or 
the income character of such receipts or amounts trans-
ferred is an issue shall prohibit the introduction by the 
taxpayer of any foreign based document that is not au-
thenticated in open court by a person with knowledge of 
such document, or any other evidence supplied by a person 
outside the jurisdiction of a United States court, unless 
such person appears before the court.’’. 
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(B) The table of subchapters for chapter 
76 is amended by inserting after the item relat-
ing to subchapter E the following new item: 
‘‘SUBCHAPTER F—PRESUMPTIONS FOR CERTAIN LEGAL PROCEEDINGS’’. 
(2) DEFINITION OF NON-FATCA INSTITUTION.— 
Section 7701(a) is amended by adding at the end 
the following new paragraph: 
‘‘(51) NON-FATCA
INSTITUTION.—The term 
‘non-FATCA institution’ means any financial insti-
tution that does not meet the reporting requirements 
of section 1471(b).’’. 
(3) PRESUMPTIONS FOR SECURITIES LAW PUR-
POSES.—Section 21 of the Securities Exchange Act 
of 1934 (15 U.S.C. 78u) is amended by adding at 
the end the following new subsection: 
‘‘(j) PRESUMPTIONS PERTAINING TO CONTROL AND 
BENEFICIAL OWNERSHIP.— 
‘‘(1) CONTROL.—For purposes of any civil judi-
cial or administrative proceeding under this title, 
there shall be a rebuttable presumption that a 
United States person (other than an entity with 
shares regularly traded on an established securities 
market) who, directly or indirectly, formed, trans-
ferred assets to, was a beneficiary of, had a bene-
ficial interest in, or received money or property or 
the use thereof from an entity, including a trust, 
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corporation, limited liability company, partnership, 
or foundation (other than an entity with shares reg-
ularly traded on an established securities market), 
that holds an account, or in any other manner has 
assets, in a non-FATCA institution (as defined in 
section 7701(a)(51) of the Internal Revenue Code of 
1986), exercised control over such entity. The pre-
sumption of control created by this paragraph shall 
not be applied to prevent the Commission from de-
termining or arguing the absence of control. 
‘‘(2) BENEFICIAL OWNERSHIP.—For purposes 
of any civil judicial or administrative proceeding 
under this title, there shall be a rebuttable presump-
tion that securities that are nominally owned by an 
entity, including a trust, corporation, limited liability 
company, partnership, or foundation (other than an 
entity with shares regularly traded on an established 
securities market), and that are held in a non- 
FATCA institution (as so defined), are beneficially 
owned by any United States person (other than an 
entity with shares regularly traded on an established 
securities market) who directly or indirectly exer-
cised control over such entity. The presumption of 
beneficial ownership created by this paragraph shall 
not be applied to prevent the Commission from de-
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termining or arguing the absence of beneficial own-
ership.’’. 
(4) PRESUMPTION FOR REPORTING PURPOSES 
RELATING TO FOREIGN FINANCIAL ACCOUNTS.—Sec-
tion 5314 of title 31, United States Code, is amend-
ed by adding at the end the following new sub-
section: 
‘‘(d) REBUTTABLE PRESUMPTION.—For purposes of 
this section, there shall be a rebuttable presumption that 
any account with a non-FATCA institution (as defined in 
section 7701(a)(51) of the Internal Revenue Code of 
1986) contains funds in an amount that is at least suffi-
cient to require a report prescribed by regulations under 
this section.’’. 
(5) REGULATORY AUTHORITY.—Not later than 
180 days after the date of the enactment of this Act, 
the Secretary of the Treasury and the Chairman of 
the Securities and Exchange Commission shall each 
adopt regulations or other guidance necessary to im-
plement the amendments made by this subsection. 
The Secretary and the Chairman may by regulation 
or guidance provide that the presumption of control 
shall not extend to particular classes of transactions, 
such as corporate reorganizations or transactions 
below a specified dollar threshold, if either deter-
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