less the electing individual corrects such failure with-
in the time specified by the Secretary). 
‘‘(4) NON-READILY TRADABLE PROPERTY.—For 
purposes of this subsection, the term ‘non-readily 
tradable property’ means any property other than 
property which is readily tradable on an established 
securities market. 
‘‘(5) SECURITY.— 
‘‘(A) IN GENERAL.—No election may be 
made under paragraph (1) with respect to any 
property unless adequate security is provided 
with respect to such property. 
‘‘(B) ADEQUATE SECURITY.—For purposes 
of subparagraph (A), security with respect to 
any property shall be treated as adequate secu-
rity if— 
‘‘(i) it is a bond which is furnished to, 
and accepted by, the Secretary, which is 
conditioned on the payment of tax (and in-
terest thereon), and which meets the re-
quirements of section 6325, or 
‘‘(ii) it is another form of security for 
such payment (including letters of credit) 
that meets such requirements as the Sec-
retary may prescribe. 
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‘‘(6) WAIVER OF CERTAIN RIGHTS.—No elec-
tion may be made under paragraph (1) unless the 
specified electing individual makes an irrevocable 
waiver of any right under any treaty of the United 
States which would preclude assessment or collection 
of any tax imposed by reason of this section. 
‘‘(7) ELECTIONS.—An election under paragraph 
(1) shall only apply to property described in the elec-
tion and, once made, is irrevocable. 
‘‘(8) INTEREST.—For purposes of section 6601, 
the last date for the payment of tax shall be deter-
mined without regard to the election under this sub-
section. 
‘‘(9) SPECIAL
RULE
IF
ELECTION
OF
RESI-
DENCY-BASED
INCOME
TAX
TERMINATES
BEFORE 
PROPERTY
IS
DISPOSED
OF.—In the case of any 
property with respect to which an election under this 
subsection has been made, if the election under sec-
tion 899 with respect to the electing individual ter-
minates before the beginning of the taxable year in 
which such property is disposed of, this section shall 
not apply to such property. 
‘‘(f) SPECIAL RULES.— 
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‘‘(1) TERMINATION OF DEFERRALS, ETC.—In 
the case of any specified electing individual, notwith-
standing any other provision of this title— 
‘‘(A) any time period for acquiring prop-
erty which would result in the reduction in the 
amount of gain recognized with respect to prop-
erty disposed of by the electing individual shall 
terminate on the day before the election date, 
and 
‘‘(B) any extension of time for payment of 
tax shall cease to apply on the day before the 
election date and the unpaid portion of such tax 
shall be due and payable at the time and in the 
manner prescribed by the Secretary. 
‘‘(2) STEP-UP IN BASIS.—Solely for purposes of 
determining any tax imposed by reason of subsection 
(a), property which was held by an individual on the 
date the individual most recently became a resident 
of the United States (within the meaning of section 
7701(b)) shall be treated as having a basis on such 
date of not less than the fair market value of such 
property on such date. The preceding sentence shall 
not apply if the individual elects not to have such 
sentence apply. Such an election, once made, shall 
be irrevocable. 
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‘‘(3) SEPARATE APPLICATION TO EACH ELEC-
TION.—In the case of any individual who makes 
more than 1 election under section 899, this section 
shall be applied separately with respect to each such 
election. 
‘‘(g) TRANSITIONAL RULE.— 
‘‘(1) IN
GENERAL.—This section, and sub-
section (a)(2) and (d)(2) of section 899, shall not 
apply to— 
‘‘(A) any individual if— 
‘‘(i) as of the introduction date, such 
individual meets the ordinary residence 
test under paragraph (2), 
‘‘(ii) such individual has not been a 
resident of the United States (as defined in 
section 7701(b)(1)(A)(ii)) for at least 3 of 
the last 5 taxable years ending before the 
introduction date, and 
‘‘(iii) such individual certifies under 
penalty of perjury that the electing indi-
vidual has met the requirements of this 
title for the last 3 taxable years ending be-
fore the introduction date and submits 
such evidence of such compliance as the 
Secretary may require, and 
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‘‘(B) any individual who has not been a 
resident of the United States (as defined in sec-
tion 7701(b)(1)(A)(ii)) at any time during the 
period beginning on the later of the date such 
individual attains age 25 or March 18, 2010, 
and ending on the date of the enactment of this 
section (and such individual shall be treated as 
described in this subparagraph without regard 
to whether or not such individual has met the 
requirements of this title at any time). 
‘‘(2) ORDINARY
RESIDENCE
TEST.—An indi-
vidual meets the ordinary residence test if such indi-
vidual is a tax resident of a foreign country and 
such foreign country is the place where such indi-
vidual regularly, normally, or customarily lives. 
‘‘(3) INTRODUCTION
DATE.—For purposes of 
this subsection, the term ‘introduction date’ means 
the date of the introduction of the bill which, upon 
enactment, enacted this section. 
‘‘SEC. 899B. CERTIFICATES OF NONRESIDENCY. 
‘‘(a) IN GENERAL.—Upon application, the Secretary 
shall issue a certificate of nonresidency— 
‘‘(1) to any electing individual if the Secretary 
determines that an election by such individual under 
section 899 is in effect, and 
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‘‘(2) to any citizen of the United States born in 
a foreign country after the date of the enactment of 
this section. 
‘‘(b) TERMINATION OF CERTIFICATE.—A certificate 
of nonresidency issued under this section shall terminate 
on the first date after such issuance with respect to which 
the individual to whom such certificate is issued— 
‘‘(1) is a resident of the United States (as de-
fined in section 7701(b)(1)(A)(ii)), or 
‘‘(2) in the case of an individual described in 
subsection (a)(1), otherwise ceases to have an elec-
tion in effect under section 899. 
‘‘(c) PUBLICATION
OF CERTIFICATE NUMBERS.— 
The Secretary shall maintain a searchable public database 
and shall— 
‘‘(1) promptly upon the issuance of any certifi-
cate of nonresidency, update such database to in-
clude the certificate number and date of issuance of 
such certificate, and 
‘‘(2) promptly upon the termination of any cer-
tificate of nonresidency, update such database to in-
dicate the termination of such certificate and the 
date of such termination. 
‘‘(d) USER FEES.— 
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‘‘(1) IN GENERAL.—The Secretary shall impose 
a user fee of $100 per application under this section. 
Fees received under this subsection shall be available 
to the Secretary (without need of further appropria-
tion) for the costs of processing applications under 
this section. 
‘‘(2) INFLATION ADJUSTMENT.—In the case of 
any calendar year beginning after 2025, the $100 
amount in paragraph (1) shall be increased by an 
amount equal to— 
‘‘(A) such dollar amount, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for such calendar 
year determined by substituting ‘2024’ for 
‘2016’ in subparagraph (A)(ii) thereof. 
If any increase under the preceding sentence is not 
a multiple of $5, such increase shall be rounded to 
next lowest multiple of $5. 
‘‘(e) REFERENCES.—Except where the context clearly 
indicates to the contrary, any reference in any provision 
of law to a certificate of nonresidency issued under this 
section shall include only such certificates which have not 
been terminated. 
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‘‘SEC. 899C. REGULATIONS. 
‘‘The Secretary shall prescribe such regulations or 
other guidance as may be necessary or appropriate to 
carry out the purposes of this subpart.’’. 
(b) CLERICAL AMENDMENT.—The table of subparts 
for part II of subchapter N of chapter 1 of such Code 
is amended by adding at the end the following new item: 
‘‘SUBPART E—RESIDENCY-BASED INCOME TAX FOR NONRESIDENT CITIZENS 
OF THE UNITED STATES’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to elections made after the date 
of the enactment of this Act for taxable years ending after 
such date. 
SEC. 3. PARTICIPATING FOREIGN FINANCIAL INSTITU-
TIONS PROHIBITED FROM DISCRIMINATING 
AGAINST 
NONRESIDENT 
UNITED 
STATES 
CITIZENS. 
(a) IN GENERAL.—Section 1471(b)(1) of the Internal 
Revenue Code of 1986 is amended by striking ‘‘and’’ at 
the end of subparagraph (E), by striking the period at 
the end of subparagraph (F) and inserting ‘‘, and’’, and 
by inserting after subparagraph (F) the following new 
subparagraph: 
‘‘(G) not to have policies or practices that 
discriminate against opening or maintaining fi-
nancial accounts for individuals who are citizens 
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of the United States and residents of the coun-
try in which the financial account is to be 
opened or maintained.’’. 
(b) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendments made by 
this section shall take effect on the date of the en-
actment of this Act. 
(2) TRANSITION RULE.—During the 1-year pe-
riod beginning on the date of the enactment of this 
Act, an agreement shall not fail to be treated as de-
scribed in section 1471(b)(1) of the Internal Rev-
enue Code of 1986 solely by reason failing to include 
the requirement of subparagraph (G) thereof if the 
institution entering into such agreement satisfies 
such requirement at all times during such period 
without regard to whether such requirement is in-
cluded in such agreement. 
Æ 
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