I 
114TH CONGRESS 
2D SESSION 
H. R. 5935 
To repeal the violation of sovereign nations’ laws and privacy matters. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 6, 2016 
Mr. MEADOWS (for himself, Mr. MULVANEY, and Mr. DUNCAN of South Caro-
lina) introduced the following bill; which was referred to the Committee 
on Ways and Means 
A BILL 
To repeal the violation of sovereign nations’ laws and privacy 
matters. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. REPEAL OF WITHHOLDING AND REPORTING 
WITH RESPECT TO CERTAIN FOREIGN AC-
COUNTS. 
(a) IN GENERAL.—The Internal Revenue Code of 
1986 is amended by striking chapter 4. 
(b) CONFORMING AMENDMENTS
FOR RULES
FOR 
ELECTRONICALLY FILED RETURNS.—Section 6011(e)(4) 
of such Code is amended— 
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(1) by striking ‘‘(as defined in section 
1471(d)(5))’’ and inserting ‘‘(as defined in section 
6038D(h)(3))’’, and 
(2) by striking ‘‘or 1474(a)’’. 
(c) CONFORMING AMENDMENT RELATED TO SUB-
STITUTE DIVIDENDS.—Section 871(l) of such Code is 
amended by striking ‘‘chapters 3 and 4’’ both places it 
appears and inserting ‘‘chapter 3’’. 
(d) OTHER CONFORMING AMENDMENTS.— 
(1) Section 6414 of such Code is amended by 
striking ‘‘or 4’’. 
(2) Paragraph (1) of section 6501(b) of such 
Code is amended by striking ‘‘4,’’. 
(3) Paragraph (2) of section 6501(b) of such 
Code is amended— 
(A) by striking ‘‘4,’’, and 
(B) by striking ‘‘AND WITHOLDING TAXES’’ 
in the heading and inserting ‘‘TAXES AND TAX 
IMPOSED BY CHAPTER 3’’. 
(4) Paragraph (3) of section 6513(b) of such 
Code is amended— 
(A) by striking ‘‘or 4’’, and 
(B) by striking ‘‘or 1474(b)’’. 
(5) Section 6513(c) of such Code is amended by 
striking ‘‘4,’’. 
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(6) Section 6611(e)(4) of such Code is amended 
by striking ‘‘or 4’’. 
(7) Paragraph (1) of section 6724(d) of such 
Code is amended by striking ‘‘under chapter 4 or’’. 
(8) Paragraph (2) of section 6724(d) of such 
Code is amended by striking ‘‘or 4’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to payments made after the date 
of the enactment of this Act. 
SEC. 2. REPEAL OF INFORMATION REPORTING WITH RE-
SPECT TO FOREIGN FINANCIAL ASSETS. 
(a) IN GENERAL.—Subpart A of part III of sub-
chapter A of chapter 61 of the Internal Revenue Code of 
1986 is amended by striking section 6038D. 
(b) REPEAL OF MODIFICATION OF STATUTE OF LIM-
ITATIONS
FOR SIGNIFICANT OMISSION
OF INCOME
IN 
CONNECTION WITH FOREIGN ASSETS.— 
(1) Paragraph (1) of section 6501(e) of the In-
ternal Revenue Code of 1986 is amended by striking 
subparagraph (A) and by redesignating subpara-
graphs (B) and (C) as subparagraphs (A) and (B), 
respectively. 
(2) Subparagraph (A) of section 6501(e) of 
such Code, as redesignated by paragraph (1), is 
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amended by striking all that precedes clause (i) and 
inserting the following: 
‘‘(A) GENERAL
RULE.—If the taxpayer 
omits from gross income an amount properly 
included therein which is in excess of 25 per-
cent of the amount of gross income stated in 
the return, the tax may be assessed, or a pro-
ceeding in court for the collection of such tax 
may be begun without assessment, at any time 
within 6 years after the return was filed. For 
purposes of this subparagraph—’’. 
(3) Paragraph (2) of section 6501(e) of such 
Code is amended by striking ‘‘and such amount is 
described 
in 
clause 
(i) 
or 
(ii) 
of 
section 
6501(e)(1)(A)’’ and inserting ‘‘which is in excess of 
25 percent of the amount of gross income stated in 
its return’’. 
(4) Paragraph (8) of section 6501(c) of such 
Code is amended— 
(A) by striking ‘‘pursuant to an election 
under section 1295(b) or’’, 
(B) by striking ‘‘1298(f)’’, and 
(C) by striking ‘‘6038D,’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart A of part III of subchapter A of chapter 61 
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of such Code is amended by striking the item related to 
section 6038D. 
(d) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section 
shall apply to taxable years ending after the date of 
the enactment of this Act. 
(2) RETURNS.—The amendments made by sub-
section (b) shall apply to returns filed after the date 
of the enactment of this Act. 
SEC. 3. REPEAL OF PENALTIES FOR UNDERPAYMENTS AT-
TRIBUTABLE TO UNDISCLOSED FOREIGN FI-
NANCIAL ASSETS. 
(a) IN GENERAL.—Section 6662 of the Internal Rev-
enue Code of 1986 is amended— 
(1) in subsection (b), by striking paragraph (7), 
and 
(2) by striking subsection (j). 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years ending after the 
date of the enactment of this Act. 
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SEC. 6. REPEAL OF MINIMUM PENALTY WITH RESPECT TO 
FAILURE TO REPORT ON CERTAIN FOREIGN 
TRUSTS. 
(a) IN GENERAL.—Section 6677(a) of the Internal 
Revenue Code of 1986 is amended— 
(1) by striking ‘‘the greater of $10,000 or’’, 
and 
(2) by striking the last sentence and inserting 
the following: ‘‘In no event shall the penalty under 
this subsection with respect to any failure exceed the 
gross reportable amount.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to notices and returns required to 
be filed after the date of the enactment of this Act. 
Æ 
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