H. R. 1314—27 
(i) by striking ‘‘In the case of the failure’’ and 
inserting ‘‘(A) In the case of the failure’’; 
(ii) by redesignating subparagraphs (A) through 
(C) as clauses (i) through (iii), respectively; and 
(iii) by adding at the end the following: 
‘‘(B) For purposes of subparagraph (A), the Commissioner of 
Social Security shall find that good cause exists for the failure 
of, or delay by, an individual in submitting a report of an event 
or change in circumstances relevant to eligibility for or amount 
of benefits under this title in any case where— 
‘‘(i) the individual (or another person referred to in para-
graph (1)(B)(iii)(I)) has provided authorization to the Commis-
sioner to access payroll data records related to the individual; 
and 
‘‘(ii) the event or change in circumstance is a change in 
the individual’s employer.’’; and 
(B) by adding at the end the following: 
‘‘(10) An individual who has authorized the Commissioner of 
Social Security to obtain records from a payroll data provider under 
paragraph (1)(B)(iii) (or on whose behalf another person described 
in subclause (I) of such paragraph has provided such authorization) 
shall not be subject to a penalty under section 1129A for any 
omission or error with respect to such individual’s wages as reported 
by the payroll data provider.’’. 
(d) REGULATIONS.—Not later than 1 year after the date of 
the enactment of this Act, the Commissioner of Social Security 
shall prescribe by regulation procedures for implementing the 
Commissioner’s access to and use of information held by payroll 
providers, including— 
(1) guidelines for establishing and maintaining information 
exchanges with payroll providers, pursuant to section 1184 
of the Social Security Act; 
(2) beneficiary authorizations; 
(3) reduced wage reporting responsibilities for individuals 
who authorize the Commissioner to access information held 
by payroll data providers through an information exchange; 
and 
(4) procedures for notifying individuals in writing when 
they become subject to such reduced wage reporting require-
ments and when such reduced wage reporting requirements 
no longer apply to them. 
(e) EFFECTIVE DATE.—The amendments made by this section 
shall take effect on the date that is 1 year after the date of 
the enactment of this Act. 
SEC. 825. TREATMENT OF EARNINGS DERIVED FROM SERVICES. 
(a) IN GENERAL.—Section 223(d)(4) of the Social Security Act 
(42 U.S.C. 423(d)(4)) is amended by adding at the end the following: 
‘‘(C)(i) Subject to clause (ii), in determining when earnings 
derived from services demonstrate an individual’s ability to engage 
in substantial gainful activity, such earnings shall be presumed 
to have been earned— 
‘‘(I) in making a determination of initial entitlement on 
the basis of disability, in the month in which the services 
were performed from which such earnings were derived; and 
‘‘(II) in any other case, in the month in which such earnings 
were paid.
H. R. 1314—28 
‘‘(ii) A presumption made under clause (i) shall not apply to 
a determination described in such clause if— 
‘‘(I) the Commissioner can reasonably establish, based on 
evidence readily available at the time of such determination, 
that the earnings were earned in a different month than when 
paid; or 
‘‘(II) in any case in which there is a determination that 
no benefit is payable due to earnings, after the individual 
is notified of the presumption made and provided with an 
opportunity to submit additional information along with an 
explanation of what additional information is needed, the indi-
vidual shows to the satisfaction of the Commissioner that such 
earnings were earned in another month.’’. 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall take effect upon the date of the enactment of this Act, or 
as soon as practicable thereafter. 
SEC. 826. ELECTRONIC REPORTING OF EARNINGS. 
(a) IN GENERAL.—Not later than September 30, 2017, the 
Commissioner of Social Security shall establish and implement 
a system that— 
(1) allows an individual entitled to a monthly insurance 
benefit based on disability under title II of the Social Security 
Act (or a representative of the individual) to report to the 
Commissioner the individual’s earnings derived from services 
through electronic means, including by telephone and Internet; 
and 
(2) automatically issues a receipt to the individual (or rep-
resentative) after receiving each such report. 
(b) SUPPLEMENTAL SECURITY INCOME REPORTING SYSTEM AS 
MODEL.—The Commissioner shall model the system established 
under subsection (a) on the electronic wage reporting systems for 
recipients of supplemental security income under title XVI of such 
Act. 
Subtitle C—Protecting Social Security 
Benefits 
SEC. 831. CLOSURE OF UNINTENDED LOOPHOLES. 
(a) PRESUMED FILING OF APPLICATION BY INDIVIDUALS ELIGIBLE 
FOR OLD-AGE INSURANCE BENEFITS AND FOR WIFE’S OR HUSBAND’S 
INSURANCE BENEFITS.— 
(1) IN GENERAL.—Section 202(r) of the Social Security Act 
(42 U.S.C. 402(r)) is amended by striking paragraphs (1) and 
(2) and inserting the following: 
‘‘(1) If an individual is eligible for a wife’s or husband’s 
insurance benefit (except in the case of eligibility pursuant 
to clause (ii) of subsection (b)(1)(B) or subsection (c)(1)(B), as 
appropriate), in any month for which the individual is entitled 
to an old-age insurance benefit, such individual shall be deemed 
to have filed an application for wife’s or husband’s insurance 
benefits for such month. 
‘‘(2) If an individual is eligible (but for section 202(k)(4)) 
for an old-age insurance benefit in any month for which the 
individual is entitled to a wife’s or husband’s insurance benefit 
(except in the case of entitlement pursuant to clause (ii) of
H. R. 1314—29 
subsection (b)(1)(B) or subsection (c)(1)(B), as appropriate), such 
individual shall be deemed to have filed an application for 
old-age insurance benefits— 
‘‘(A) for such month, or 
‘‘(B) if such individual is also entitled to a disability 
insurance benefit for such month, in the first subsequent 
month for which such individual is not entitled to a dis-
ability insurance benefit.’’. 
(2) CONFORMING AMENDMENT.—Section 202 of the Social 
Security Act (42 U.S.C. 402) is amended— 
(A) in subsection (b)(1), by striking subparagraph (B) 
and inserting the following: 
‘‘(B)(i) has attained age 62, or 
‘‘(ii) in the case of a wife, has in her care (individually 
or jointly with such individual) at the time of filing such applica-
tion a child entitled to a child’s insurance benefit on the basis 
of the wages and self-employment income of such individual,’’; 
and 
(B) in subsection (c)(1), by striking subparagraph (B) 
and inserting the following: 
‘‘(B)(i) has attained age 62, or 
‘‘(ii) in the case of a husband, has in his care (individually 
or jointly with such individual) at the time of filing such applica-
tion a child entitled to a child’s insurance benefit on the basis 
of the wages and self-employment income of such individual,’’. 
(3) EFFECTIVE DATE.—The amendments made by this sub-
section shall apply with respect to individuals who attain age 
62 in any calendar year after 2015. 
(b) VOLUNTARY SUSPENSION OF BENEFITS.— 
(1) IN GENERAL.—Section 202 of the Social Security Act 
(42 U.S.C. 402) is amended by adding at the end the following: 
‘‘(z) VOLUNTARY SUSPENSION.—(1)(A) Except as otherwise pro-
vided in this subsection, any individual who has attained retirement 
age (as defined in section 216(l)) and is entitled to old-age insurance 
benefits may request that payment of such benefits be suspended— 
‘‘(i) beginning with the month following the month 
in which such request is received by the Commissioner, 
and 
‘‘(ii) ending with the earlier of the month following 
the month in which a request by the individual for a 
resumption of such benefits is so received or the month 
following the month in which the individual attains the 
age of 70. 
‘‘(2) An individual may not suspend such benefits under this 
subsection, and any suspension of such benefits under this sub-
section shall end, effective with respect to any month in which 
the individual becomes subject to— 
‘‘(A) mandatory suspension of such benefits under section 
202(x); 
‘‘(B) termination of such benefits under section 202(n); 
‘‘(C) a penalty under section 1129A imposing nonpayment 
of such benefits; or 
‘‘(D) any other withholding, in whole or in part, of such 
benefits under any other provision of law that authorizes 
recovery of a debt by withholding such benefits.
H. R. 1314—30 
‘‘(3) In the case of an individual who requests that such benefits 
be suspended under this subsection, for any month during the 
period in which the suspension is in effect— 
‘‘(A) no retroactive benefits (as defined in subsection 
(j)(4)(B)(iii)) shall be payable to such individual; 
‘‘(B) no monthly benefit shall be payable to any other 
individual on the basis of such individual’s wages and self- 
employment income; and 
‘‘(C) no monthly benefit shall be payable to such individual 
on the basis of another individual’s wages and self-employment 
income.’’. 
(2) CONFORMING AMENDMENT.—Section 202(w)(2)(B)(ii) of 
the Social Security Act (42 U.S.C. 402(w)(2)(B)(ii)) is amended 
by inserting ‘‘under section 202(z)’’ after ‘‘request’’. 
(3) EFFECTIVE DATE.—The amendments made by this sub-
section shall apply with respect to requests for benefit suspen-
sion submitted beginning at least 180 days after the date 
of the enactment of this Act. 
SEC. 832. REQUIREMENT FOR MEDICAL REVIEW. 
(a) IN GENERAL.—Section 221(h) of the Social Security Act 
(42 U.S.C. 421(h)) is amended to read as follows: 
‘‘(h) An initial determination under subsection (a), (c), (g), or 
(i) shall not be made until the Commissioner of Social Security 
has made every reasonable effort to ensure— 
‘‘(1) in any case where there is evidence which indicates 
the existence of a mental impairment, that a qualified psychia-
trist or psychologist has completed the medical portion of the 
case review and any applicable residual functional capacity 
assessment; and 
‘‘(2) in any case where there is evidence which indicates 
the existence of a physical impairment, that a qualified physi-
cian has completed the medical portion of the case review 
and any applicable residual functional capacity assessment.’’. 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall apply with respect to determinations of disability made on 
or after the date that is 1 year after the date of the enactment 
of this Act. 
SEC. 833. REALLOCATION OF PAYROLL TAX REVENUE. 
(1) WAGES.—Section 201(b)(1) of the Social Security Act 
(42 U.S.C. 401(b)(1)) is amended by striking ‘‘and (R) 1.80 
per centum of the wages (as so defined) paid after December 
31, 1999, and so reported’’ and inserting ‘‘(R) 1.80 per centum 
of the wages (as so defined) paid after December 31, 1999, 
and before January 1, 2016, and so reported, (S) 2.37 per 
centum of the wages (as so defined) paid after December 31, 
2015, and before January 1, 2019, and so reported, and (T) 
1.80 per centum of the wages (as so defined) paid after 
December 31, 2018, and so reported,’’. 
(2) SELF-EMPLOYMENT INCOME.—Section 201(b)(2) of such 
Act (42 U.S.C. 401(b)(2)) is amended by striking ‘‘and (R) 1.80 
per centum of the amount of self-employment income (as so 
defined) so reported for any taxable year beginning after 
December 31, 1999’’ and inserting ‘‘(R) 1.80 per centum of 
the amount of self-employment income (as so defined) so 
reported for any taxable year beginning after December 31, 
1999, and before January 1, 2016, (S) 2.37 per centum of
H. R. 1314—31 
the amount of self-employment income (as so defined) so 
reported for any taxable year beginning after December 31, 
2015, and before January 1, 2019, and (T) 1.80 per centum 
of the amount of self-employment income (as so defined) so 
reported for any taxable year beginning after December 31, 
2018’’. 
(3) EFFECTIVE DATE.—The amendments made by this sec-
tion shall apply with respect to wages paid after December 
31, 2015, and self-employment income for taxable years begin-
ning after such date. 
SEC. 834. ACCESS TO FINANCIAL INFORMATION FOR WAIVERS AND 
ADJUSTMENTS OF RECOVERY. 
(a) ACCESS
TO FINANCIAL INFORMATION
FOR OLD-AGE, SUR-
VIVORS, AND DISABILITY INSURANCE WAIVERS.—Section 204(b) of 
the Social Security Act (42 U.S.C. 404(b)) is amended to read 
as follows: 
‘‘(b)(1) In any case in which more than the correct amount 
of payment has been made, there shall be no adjustment of pay-
ments to, or recovery by the United States from, any person who 
is without fault if such adjustment or recovery would defeat the 
purpose of this title or would be against equity and good conscience. 
‘‘(2) In making for purposes of this subsection any determination 
of whether any individual is without fault, the Commissioner of 
Social Security shall specifically take into account any physical, 
mental, educational, or linguistic limitation such individual may 
have (including any lack of facility with the English language). 
‘‘(3)(A) In making for purposes of this subsection any determina-
tion of whether such adjustment or recovery would defeat the 
purpose of this title, the Commissioner of Social Security shall 
require an individual to provide authorization for the Commissioner 
to obtain (subject to the cost reimbursement requirements of section 
1115(a) of the Right to Financial Privacy Act) from any financial 
institution (within the meaning of section 1101(1) of such Act) 
any financial record (within the meaning of section 1101(2) of 
such Act) held by the institution with respect to such individual 
whenever the Commissioner determines the record is needed in 
connection with a determination with respect to such adjustment 
or recovery. 
‘‘(B) Notwithstanding section 1104(a)(1) of the Right to Finan-
cial Privacy Act, an authorization provided by an individual pursu-
ant this paragraph shall remain effective until the earlier of— 
‘‘(i) the rendering of a final decision on whether adjustment 
or recovery would defeat the purpose of this title; or 
‘‘(ii) the express revocation by the individual of the 
authorization, in a written notification to the Commissioner. 
‘‘(C)(i) An authorization obtained by the Commissioner of Social 
Security pursuant this paragraph shall be considered to meet the 
requirements of the Right to Financial Privacy Act for purposes 
of section 1103(a) of such Act, and need not be furnished to the 
financial institution, notwithstanding section 1104(a) of such Act. 
‘‘(ii) The certification requirements of section 1103(b) of the 
Right to Financial Privacy Act shall not apply to requests by the 
Commissioner of Social Security pursuant to an authorization pro-
vided under this paragraph.
H. R. 1314—32 
‘‘(iii) A request by the Commissioner pursuant to an authoriza-
tion provided under this paragraph is deemed to meet the require-
ments of section 1104(a)(3) of the Right to Financial Privacy Act 
and the flush language of section 1102 of such Act. 
‘‘(D) The Commissioner shall inform any person who provides 
authorization pursuant to this paragraph of the duration and scope 
of the authorization. 
‘‘(E) If an individual refuses to provide, or revokes, any 
authorization for the Commissioner of Social Security to obtain 
from any financial institution any financial record, the Commis-
sioner may, on that basis, determine that adjustment or recovery 
would not defeat the purpose of this title.’’. 
(b) ACCESS
TO FINANCIAL INFORMATION
FOR SUPPLEMENTAL 
SECURITY INCOME WAIVERS.— 
(1) IN GENERAL.—Section 1631(b)(1)(B) of the Social Secu-
rity Act (42 U.S.C. 1383(b)(1)(B)) is amended by adding at 
the end the following: ‘‘In making for purposes of this subpara-
graph a determination of whether an adjustment or recovery 
would defeat the purpose of this title, the Commissioner of 
Social Security shall require an individual to provide authoriza-
tion for the Commissioner to obtain (subject to the cost 
reimbursement requirements of section 1115(a) of the Right 
to Financial Privacy Act) from any financial institution (within 
the meaning of section 1101(1) of such Act) any financial record 
(within the meaning of section 1101(2) of such Act) held by 
the institution with respect to such individual whenever the 
Commissioner determines that the record is needed in connec-
tion with a determination with respect to such adjustment 
or recovery, under the terms and conditions established under 
subsection (e)(1)(B).’’. 
(2) CONFORMING AMENDMENT.—Section 1631(e)(1)(B)(ii)(V) 
of such Act (42 U.S.C. 1383(e)(1)(B)(ii)(V)) is amended by 
inserting ‘‘, determine that adjustment or recovery on account 
of an overpayment with respect to the applicant or recipient 
would not defeat the purpose of this title, or both’’ before 
the period at the end. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply with respect to determinations made on or after the 
date that is 3 months after the date of the enactment of this 
section. 
Subtitle D—Relieving Administrative 
Burdens and Miscellaneous Provisions 
SEC. 841. INTERAGENCY COORDINATION TO IMPROVE PROGRAM 
ADMINISTRATION. 
(a) IN GENERAL.—Title XI of the Social Security Act (42 U.S.C. 
1301 et seq.) is amended by inserting after section 1127 the fol-
lowing: 
‘‘INTERAGENCY COORDINATION TO IMPROVE PROGRAM 
ADMINISTRATION 
‘‘SEC. 1127A. (a) COORDINATION AGREEMENT.—Notwithstanding 
any other provision of law, including section 207 of this Act, the 
Commissioner of Social Security (referred to in this section as
H. R. 1314—33 
‘the Commissioner’) and the Director of the Office of Personnel 
Management (referred to in this section as ‘the Director’) shall 
enter into an agreement under which a system is established to 
carry out the following procedure: 
‘‘(1) The Director shall notify the Commissioner when any 
individual is determined to be entitled to a monthly disability 
annuity payment pursuant to subchapter V of chapter 84 of 
subpart G of part III of title 5, United States Code, and shall 
certify that such individual has provided the authorization 
described in subsection (f). 
‘‘(2) If the Commissioner determines that an individual 
described in paragraph (1) is also entitled to past-due benefits 
under section 223, the Commissioner shall notify the Director 
of such fact. 
‘‘(3) Not later than 30 days after receiving a notification 
described in paragraph (2) with respect to an individual, the 
Director shall provide the Commissioner with the total amount 
of any disability annuity overpayments made to such individual, 
as well as any other information (in such form and manner 
as the Commissioner shall require) that the Commissioner 
determines is necessary to carry out this section. 
‘‘(4) If the Director provides the Commissioner with the 
information described in paragraph (3) in a timely manner, 
the Commissioner may withhold past-due benefits under section 
223 to which such individual is entitled and may pay the 
amount described in paragraph (3) to the Office of Personnel 
Management for any disability annuity overpayments made 
to such individual. 
‘‘(5) The Director shall credit any amount received under 
paragraph (4) with respect to an individual toward any dis-
ability annuity overpayment owed by such individual. 
‘‘(b) LIMITATIONS.— 
‘‘(1) PRIORITY OF OTHER REDUCTIONS.—Benefits shall only be 
withheld under this section after any other reduction applicable 
under this Act, including sections 206(a)(4), 224, and 1127(a). 
‘‘(2) TIMELY NOTIFICATION REQUIRED.—The Commissioner may 
not withhold benefits under this section if the Director does not 
provide the notice described in subsection (a)(3) within the time 
period described in such subsection. 
‘‘(c) DELAYED
PAYMENT
OF
PAST-DUE
BENEFITS.—If the 
Commissioner is required to make a notification described in sub-
section (a)(2) with respect to an individual, the Commissioner shall 
not make any payment of past-due benefits under section 223 
to such individual until after the period described in subsection 
(a)(3). 
‘‘(d) REVIEW.—Notwithstanding section 205 or any other provi-
sion of law, any determination regarding the withholding of past- 
due benefits under this section shall only be subject to adjudication 
and review by the Director under section 8461 of title 5, United 
States Code. 
‘‘(e) DISABILITY ANNUITY OVERPAYMENT DEFINED.—For pur-
poses of this section, the term ‘disability annuity overpayment’ 
means the amount of the reduction under section 8452(a)(2) of 
title 5, United States Code, applicable to a monthly annuity pay-
ment made to an individual pursuant to subchapter V of chapter 
84 of subpart G of part III of such title due to the individual’s
H. R. 1314—34 
concurrent entitlement to a disability insurance benefit under sec-
tion 223 during such month. 
‘‘(f) AUTHORIZATION TO WITHHOLD BENEFITS.—The authoriza-
tion described in this subsection, with respect to an individual, 
is written authorization provided by the individual to the Director 
which authorizes the Commissioner to withhold past-due benefits 
under section 223 to which such individual is entitled in order 
to pay the amount withheld to the Office of Personnel Management 
for any disability overpayments made to such individual. 
‘‘(g) EXPENSES.—The Director shall pay to the Social Security 
Administration an amount equal to the amount estimated by the 
Commissioner as the total cost incurred by the Social Security 
Administration in carrying out this section for each calendar 
quarter.’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to past-due disability insurance benefits payable on 
or after the date that is 1 year after the date of the enactment 
of this section. 
SEC. 
842. 
ELIMINATION 
OF 
QUINQUENNIAL 
DETERMINATIONS 
RELATING TO WAGE CREDITS FOR MILITARY SERVICE 
PRIOR TO 1957. 
Section 217(g)(2) of the Social Security Act (42 U.S.C. 417(g)(2)) 
is amended— 
(1) by inserting ‘‘through 2010’’ after ‘‘each fifth year there-
after’’; and 
(2) by inserting after the first sentence the following: ‘‘The 
Secretary of Health and Human Services shall revise the 
amount determined under paragraph (1) with respect to the 
Federal Hospital Insurance Trust Fund under title XVIII in 
2015 and each fifth year thereafter through such date, and 
using such data, as the Secretary determines appropriate on 
the basis of the amount of benefits and administrative expenses 
actually paid from such Trust Fund under title XVIII and 
the relevant actuarial assumptions set forth in the report of 
the Board of Trustees of such Trust Fund for such year under 
section 1817(b).’’. 
SEC. 843. CERTIFICATION OF BENEFITS PAYABLE TO A DIVORCED 
SPOUSE OF A RAILROAD WORKER TO THE RAILROAD 
RETIREMENT BOARD. 
Section 205(i) of the Social Security Act (42 U.S.C. 405(i)) 
is amended by inserting ‘‘or divorced wife or divorced husband’’ 
after ‘‘the wife or husband’’. 
SEC. 844. TECHNICAL AMENDMENTS TO ELIMINATE OBSOLETE PROVI-
SIONS. 
(a) ELIMINATION OF REFERENCE IN SECTION 226 TO A REPEALED 
PROVISION.—Section 226 of the Social Security Act (42 U.S.C. 426) 
is amended— 
(1) by striking subsection (i); and 
(2) by redesignating subsection (j) as subsection (i). 
(b) ELIMINATION
OF
REFERENCE
IN
SECTION
226A TO
A 
REPEALED PROVISION.—Section 226A of such Act (42 U.S.C. 426– 
1) is amended by striking the second subsection (c).
H. R. 1314—35 
SEC. 845. REPORTING REQUIREMENTS TO CONGRESS. 
(a) REPORT ON FRAUD AND IMPROPER PAYMENT PREVENTION 
ACTIVITIES.—Section 704(b) of the Social Security Act (42 U.S.C. 
904(b)) is amended by adding at the end the following: 
‘‘(3) For each fiscal year beginning with 2016 and ending 
with 2021, the Commissioner shall include in the annual budget 
prepared pursuant to subparagraph (A) a report describing 
the purposes for which amounts made available for purposes 
described in section 251(b)(2)(B) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 for the fiscal year were 
expended by the Social Security Administration and the pur-
poses for which the Commissioner plans for the Administration 
to expend such funds in the succeeding fiscal year, including— 
‘‘(A) the total such amount expended; 
‘‘(B) the amount expended on co-operative disability 
investigation units; 
‘‘(C) the number of cases of fraud prevented by co- 
operative disability investigation units and the amount 
expended on such cases (as reported to the Commissioner 
by the Inspector General of the Social Security Administra-
tion); 
‘‘(D) the number of felony cases prosecuted under sec-
tion 208 (as reported to the Commissioner by the Inspector 
General) and the amount expended by the Social Security 
Administration in supporting the prosecution of such cases; 
‘‘(E) the amount of such felony cases successfully pros-
ecuted (as reported to the Commissioner by the Inspector 
General) and the amount expended by the Social Security 
Administration in supporting the prosecution of such cases; 
‘‘(F) the amount expended on and the number of com-
pleted— 
‘‘(i) continuing disability reviews conducted by 
mail; 
‘‘(ii) redeterminations conducted by mail; 
‘‘(iii) medical continuing disability reviews con-
ducted pursuant to section 221(i); 
‘‘(iv) medical continuing disability reviews con-
ducted pursuant to 1614(a)(3)(H); 
‘‘(v) redeterminations conducted pursuant to sec-
tion 1611(c); and 
‘‘(vi) work-related continuing disability reviews to 
determine whether earnings derived from services 
demonstrate an individual’s ability to engage in 
substantial gainful activity; 
‘‘(G) the number of cases of fraud identified for which 
benefits were terminated as a result of medical continuing 
disability reviews (as reported to the Commissioner by 
the Inspector General), work-related continuing disability 
reviews, and redeterminations, and the amount of resulting 
savings for each such type of review or redetermination; 
and 
‘‘(H) the number of work-related continuing disability 
reviews in which a beneficiary improperly reported 
earnings derived from services for more than 3 consecutive 
months, and the amount of resulting savings.’’. 
(b) 
REPORT
ON
WORK-RELATED
CONTINUING
DISABILITY 
REVIEWS.—The Commissioner of Social Security shall annually
H. R. 1314—36 
submit to the Committee on Ways and Means of the House of 
Representatives and the Committee on Finance of the Senate a 
report on the number of work-related continuing disability reviews 
conducted each year to determine whether earnings derived from 
services demonstrate an individual’s ability to engage in substantial 
gainful activity. Such report shall include— 
(1) the number of individuals receiving benefits based on 
disability under title II of such Act for whom reports of earnings 
were received from any source by the Commissioner in the 
previous calendar year, reported as a total number and sepa-
rately by the source of the report; 
(2) the number of individuals for whom such reports 
resulted in a determination to conduct a work-related con-
tinuing disability review, and the basis on which such deter-
minations were made; 
(3) in the case of a beneficiary selected for a work-related 
continuing disability review on the basis of a report of earnings 
from any source— 
(A) the average number of days— 
(i) between the receipt of the report and the initi-
ation of the review; 
(ii) between the initiation and the completion of 
the review; and 
(iii) the average amount of overpayment, if any; 
(B) the number of such reviews completed during such 
calendar year, and the number of such reviews that 
resulted in a suspension or termination of benefits; 
(C) the number of such reviews initiated in the current 
year that had not been completed as of the end of such 
calendar year; 
(D) the number of such reviews initiated in a prior 
year that had not been completed as of the end of such 
calendar year; 
(4) the total savings to the Trust Funds and the Treasury 
generated from benefits suspended or terminated as a result 
of such reviews; and 
(5) with respect to individuals for whom a work-related 
continuing disability review was completed during such cal-
endar year— 
(A) the number who participated in the Ticket to Work 
program under section 1148 during such calendar year; 
(B) the number who used any program work incentives 
during such calendar year; and 
(C) the number who received vocational rehabilitation 
services during such calendar year with respect to which 
the Commissioner of Social Security reimbursed a State 
agency under section 222(d). 
(c) REPORT
ON
OVERPAYMENT
WAIVERS.—Not later than 
January 1 of each calendar year, the Commissioner of Social Secu-
rity shall submit to the Committee on Ways and Means of the 
House of Representatives and the Committee on Finance of the 
Senate a report on— 
(1) the number and total value of overpayments recovered 
or scheduled to be recovered by the Social Security Administra-
tion during the previous fiscal year of benefits under title 
II and title XVI, respectively, including the terms and condi-
tions of repayment of such overpayments; and
H. R. 1314—37 
(2) the number and total value of overpayments waived 
by the Social Security Administration during the previous fiscal 
year of benefits under title II and title XVI, respectively. 
SEC. 
846. 
EXPEDITED 
EXAMINATION 
OF 
ADMINISTRATIVE 
LAW 
JUDGES. 
(a) IN GENERAL.—Notwithstanding any other provision of law, 
the Office of Personnel Management shall, upon request of the 
Commissioner of Social Security, expeditiously administer a suffi-
cient number of competitive examinations, as determined by the 
Commissioner, for the purpose of identifying an adequate number 
of candidates to be appointed as Administrative Law Judges under 
section 3105 of title 5, United States Code. The first such examina-
tion shall take place not later than April 1, 2016 and other examina-
tions shall take place at such time or times requested by the 
Commissioner, but not later than December 31, 2022. Such 
examinations shall proceed even if one or more individuals who 
took a prior examination have appealed an adverse determination 
and one or more of such appeals have not concluded, provided 
that— 
(1) the Commissioner of Social Security has made a deter-
mination that delaying the examination poses a significant 
risk that an adequate number of Administrative Law Judges 
will not be available to meet the need of the Social Security 
Administration to reduce or prevent a backlog of cases awaiting 
a hearing; 
(2) an individual whose appeal is pending is provided an 
option to continue their appeal or elects to take the new exam-
ination, in which case the appeal is considered vacated; and 
(3) an individual who decides to continue his or her appeal 
and who ultimately prevails in the appeal shall receive expedi-
tious consideration for hire by the Office Personnel Manage-
ment and the Commissioner of Social Security. 
(b) PAYMENT OF COSTS.—Notwithstanding any other provision 
of law, the Commissioner of Social Security shall pay the full 
cost associated with each examination conducted pursuant to sub-
section (a). 
TITLE IX—TEMPORARY EXTENSION OF 
PUBLIC DEBT LIMIT 
SEC. 901. TEMPORARY EXTENSION OF PUBLIC DEBT LIMIT. 
(a) IN GENERAL.—Section 3101(b) of title 31, United States 
Code, shall not apply for the period beginning on the date of 
the enactment of this Act and ending on March 15, 2017. 
(b) SPECIAL RULE RELATING TO OBLIGATIONS ISSUED DURING 
EXTENSION PERIOD.—Effective March 16, 2017, the limitation in 
effect under section 3101(b) of title 31, United States Code, shall 
be increased to the extent that— 
(1) the face amount of obligations issued under chapter 
31 of such title and the face amount of obligations whose 
principal and interest are guaranteed by the United States 
Government (except guaranteed obligations held by the Sec-
retary of the Treasury) outstanding on March 16, 2017, exceeds 
(2) the face amount of such obligations outstanding on 
the date of the enactment of this Act.
H. R. 1314—38 
SEC. 
902. 
RESTORING 
CONGRESSIONAL 
AUTHORITY 
OVER 
THE 
NATIONAL DEBT. 
(a) EXTENSION
LIMITED
TO
NECESSARY
OBLIGATIONS.—An 
obligation shall not be taken into account under section 901(b)(1) 
unless the issuance of such obligation was necessary to fund a 
commitment incurred pursuant to law by the Federal Government 
that required payment before March 16, 2017. 
(b) PROHIBITION
ON CREATION
OF CASH RESERVE DURING 
EXTENSION PERIOD.—The Secretary of the Treasury shall not issue 
obligations during the period specified in section 901(a) for the 
purpose of increasing the cash balance above normal operating 
balances in anticipation of the expiration of such period. 
TITLE X—SPECTRUM PIPELINE 
SEC. 1001. SHORT TITLE. 
This title may be cited as the ‘‘Spectrum Pipeline Act of 2015’’. 
SEC. 1002. DEFINITIONS. 
In this title: 
(1) ASSISTANT SECRETARY.—The term ‘‘Assistant Secretary’’ 
means the Assistant Secretary of Commerce for Communica-
tions and Information. 
(2) COMMISSION.—The term ‘‘Commission’’ means the Fed-
eral Communications Commission. 
(3) FEDERAL ENTITY.—The term ‘‘Federal entity’’ has the 
meaning given such term in section 113(l) of the National 
Telecommunications and Information Administration Organiza-
tion Act (47 U.S.C. 923(l)). 
(4) SECRETARY.—The term ‘‘Secretary’’ means the Secretary 
of Commerce. 
SEC. 1003. RULE OF CONSTRUCTION. 
Each range of frequencies described in this title shall be con-
strued to be inclusive of the upper and lower frequencies in the 
range. 
SEC. 1004. IDENTIFICATION, REALLOCATION, AND AUCTION OF FED-
ERAL SPECTRUM. 
(a) IDENTIFICATION OF SPECTRUM.—Not later than January 1, 
2022, the Secretary shall submit to the President and to the 
Commission a report identifying 30 megahertz of electromagnetic 
spectrum (in bands of not less than 10 megahertz of contiguous 
frequencies) below the frequency of 3 gigahertz (except for the 
spectrum between the frequencies of 1675 megahertz and 1695 
megahertz) for reallocation from Federal use to non-Federal use 
or shared Federal and non-Federal use, or a combination thereof. 
(b) CLEARING OF SPECTRUM.—The President shall— 
(1) not later than January 1, 2022, begin the process of 
withdrawing or modifying the assignment to a Federal Govern-
ment station of the electromagnetic spectrum identified under 
subsection (a); and 
(2) not later than 30 days after completing the withdrawal 
or modification, notify the Commission that the withdrawal 
or modification is complete. 
(c) REALLOCATION AND AUCTION.— 
(1) IN GENERAL.—The Commission shall—
H. R. 1314—39 
(A) reallocate the electromagnetic spectrum identified 
under subsection (a) for non-Federal use or shared Federal 
and non-Federal use, or a combination thereof; and 
(B) notwithstanding paragraph (15)(A) of section 309(j) 
of the Communications Act of 1934 (47 U.S.C. 309(j)), not 
later than July 1, 2024, begin a system of competitive 
bidding under such section to grant new initial licenses 
for the use of such spectrum, subject to flexible-use service 
rules. 
(2) PROCEEDS TO COVER 110 PERCENT OF FEDERAL RELOCA-
TION OR SHARING COSTS.—Nothing in paragraph (1) shall be 
construed to relieve the Commission from the requirements 
of section 309(j)(16)(B) of the Communications Act of 1934 
(47 U.S.C. 309(j)(16)(B)). 
SEC. 1005. ADDITIONAL USES OF SPECTRUM RELOCATION FUND. 
(a) IN GENERAL.—Section 118 of the National Telecommuni-
cations and Information Administration Organization Act (47 U.S.C. 
928) is amended— 
(1) by redesignating subsection (g) as subsection (i); and 
(2) by inserting after subsection (f) the following: 
‘‘(g) ADDITIONAL PAYMENTS FOR RESEARCH AND DEVELOPMENT 
AND PLANNING ACTIVITIES.— 
‘‘(1) AMOUNTS AVAILABLE.—Notwithstanding subsections (c) 
through (e)— 
‘‘(A) there are appropriated from the Fund on the date 
of the enactment of the Spectrum Pipeline Act of 2015, 
and available to the Director of OMB for use in accordance 
with paragraph (2), not more than $500,000,000 from 
amounts in the Fund on such date of enactment; and 
‘‘(B) there are appropriated from the Fund after such 
date of enactment, and available to the Director of OMB 
for use in accordance with such paragraph, not more than 
10 percent of the amounts deposited in the Fund after 
such date of enactment. 
‘‘(2) USE OF AMOUNTS.— 
‘‘(A) IN
GENERAL.—The Director of OMB may use 
amounts made available under paragraph (1) to make pay-
ments requested by Federal entities for research and 
development, engineering studies, economic analyses, 
activities with respect to systems, or other planning activi-
ties intended to improve the efficiency and effectiveness 
of the spectrum use of Federal entities in order to make 
available frequencies described in subparagraph (C) for 
reallocation for non-Federal use or shared Federal and 
non-Federal use, or a combination thereof, and for auction 
in accordance with such reallocation. 
‘‘(B) 
SYSTEMS
THAT
IMPROVE
EFFICIENCY
AND 
EFFECTIVENESS OF FEDERAL SPECTRUM USE.—For purposes 
of a payment under subparagraph (A) for activities with 
respect to systems that improve the efficiency and effective-
ness of the spectrum use of Federal entities, such systems 
include the following: 
‘‘(i) Systems that have increased functionality or 
that increase the ability of a Federal entity to 
accommodate spectrum sharing with non-Federal enti-
ties.
H. R. 1314—40 
‘‘(ii) Systems that consolidate functions or services 
that have been provided using separate systems. 
‘‘(iii) Non-spectrum technology or systems. 
‘‘(C) 
FREQUENCIES
DESCRIBED.—The 
frequencies 
described in this subparagraph are, with respect to a pay-
ment under subparagraph (A), frequencies that— 
‘‘(i) are assigned to a Federal entity; and 
‘‘(ii) at the time of the activities conducted with 
such payment, are not identified for auction. 
‘‘(D) CONDITIONS.—The Director of OMB may not make 
a payment to a Federal entity under subparagraph (A)— 
‘‘(i) unless— 
‘‘(I) the Federal entity has submitted to the 
Technical 
Panel 
established 
under 
section 
113(h)(3) a plan describing the activities that the 
Federal entity will conduct with such payment; 
‘‘(II) the Technical Panel has approved such 
plan under subparagraph (E); and 
‘‘(III) the Director of OMB has submitted the 
plan approved under subparagraph (E) to the 
congressional committees described in subsection 
(d)(2)(C); and 
‘‘(ii) until 60 days have elapsed after submission 
of the plan under clause (i)(III). 
‘‘(E) REVIEW BY TECHNICAL PANEL.— 
‘‘(i) IN GENERAL.—Not later than 120 days after 
a Federal entity submits a plan under subparagraph 
(D)(i)(I) to the Technical Panel established under sec-
tion 113(h)(3), the Technical Panel shall approve or 
disapprove such plan. 
‘‘(ii) 
CRITERIA
FOR
REVIEW.—In 
considering 
whether to approve or disapprove a plan under this 
subparagraph, the Technical Panel shall consider 
whether— 
‘‘(I) the activities that the Federal entity will 
conduct with the payment will— 
‘‘(aa) increase the probability of relocation 
from or sharing of Federal spectrum; 
‘‘(bb) facilitate an auction intended to 
occur not later than 8 years after the payment; 
and 
‘‘(cc) increase the net expected auction pro-
ceeds in an amount not less than the time 
value of the amount of the payment; and 
‘‘(II) the transfer will leave sufficient amounts 
in the Fund for the other purposes of the Fund. 
‘‘(h) PRIORITIZATION
OF PAYMENTS.—In determining whether 
to make payments under subsections (f) and (g), the Director of 
OMB shall, to the extent practicable, prioritize payments under 
subsection (g).’’. 
(b) ADMINISTRATIVE SUPPORT FOR TECHNICAL PANEL.—Section 
113(h)(3)(C) of the National Telecommunications and Information 
Administration Organization Act (47 U.S.C. 923(h)(3)(C)) is 
amended by striking ‘‘this subsection and subsection (i)’’ and 
inserting ‘‘this subsection, subsection (i), and section 118(g)(2)(E)’’.
H. R. 1314—41 
(c) ELIGIBLE FEDERAL ENTITIES.—Section 113 of the National 
Telecommunications and Information Administration Organization 
Act (47 U.S.C. 923) is amended— 
(1) in subsection (g)— 
(A) in paragraph (1)— 
(i) by striking ‘‘authorized to use a band of eligible 
frequencies described in paragraph (2) and’’; 
(ii) by inserting ‘‘eligible’’ after ‘‘auction of’’; 
(iii) by inserting ‘‘eligible’’ after ‘‘reallocation of’’; 
and 
(B) in paragraph (3)(A), by striking ‘‘previously 
assigned to such entity or the sharing of spectrum fre-
quencies assigned to such entity’’ and inserting ‘‘or the 
sharing of spectrum frequencies’’; and 
(2) in subsection (h)(1), by striking ‘‘authorized to use any 
such frequency’’. 
SEC. 1006. PLANS FOR AUCTION OF CERTAIN SPECTRUM. 
(a) REPORTS TO CONGRESS.—In accordance with each paragraph 
of subsection (c), the Commission, in coordination with the Assistant 
Secretary, shall submit to the Committee on Energy and Commerce 
of the House of Representatives and the Committee on Commerce, 
Science, and Transportation of the Senate a report containing a 
proposed plan for the assignment of new licenses for non-Federal 
use of the spectrum identified under such paragraph, including— 
(1) an assessment of the operations of Federal entities 
that operate Federal Government stations authorized to use 
such spectrum; 
(2) an estimated timeline for the competitive bidding 
process; and 
(3) a proposed plan for balance between unlicensed and 
licensed use. 
(b) INFORMATION FOR ASSESSMENT OF FEDERAL ENTITY OPER-
ATIONS.—The Assistant Secretary, in coordination with the affected 
Federal entities, shall provide to the Commission the necessary 
information to carry out subsection (a)(1). 
(c) REPORT DEADLINES; IDENTIFICATION
OF SPECTRUM.—The 
Commission shall submit reports under subsection (a) as follows: 
(1) Not later than January 1, 2022, for at least 50 mega-
hertz of spectrum (in bands of not less than 10 megahertz 
of contiguous frequencies) below 6 gigahertz, to be identified 
by the Commission, in coordination with the Assistant Sec-
retary, from spectrum other than the spectrum identified under 
section 1004(a). 
(2) Not later than January 1, 2024, for at least 50 mega-
hertz of spectrum (in bands of not less than 10 megahertz 
of contiguous frequencies) below 6 gigahertz, to be identified 
by the Commission, in coordination with the Assistant Sec-
retary, from spectrum other than the spectrum identified under 
paragraph (1) or section 1004(a). 
SEC. 1007. FCC AUCTION AUTHORITY. 
Section 309(j)(11) of the Communications Act of 1934 (47 U.S.C. 
309(j)(11)) is amended by inserting before the period at the end 
the following: ‘‘, except that, with respect to the electromagnetic 
spectrum identified under section 1004(a) of the Spectrum Pipeline 
Act of 2015, such authority shall expire on September 30, 2025’’.
H. R. 1314—44 
underpayment were on account of a mathematical or clerical error 
appearing on the partner’s return. Paragraph (2) of section 6213(b) 
shall not apply to any assessment of an underpayment referred 
to in the preceding sentence. 
‘‘(c) EXCEPTION
FOR NOTIFICATION
OF INCONSISTENT TREAT-
MENT.— 
‘‘(1) IN GENERAL.—In the case of any item referred to in 
subsection (a), if— 
‘‘(A)(i) the partnership has filed a return but the part-
ner’s treatment on the partner’s return is (or may be) 
inconsistent with the treatment of the item on the partner-
ship return, or 
‘‘(ii) the partnership has not filed a return, and 
‘‘(B) the partner files with the Secretary a statement 
identifying the inconsistency, 
subsections (a) and (b) shall not apply to such item. 
‘‘(2) PARTNER
RECEIVING
INCORRECT
INFORMATION.—A 
partner shall be treated as having complied with subparagraph 
(B) of paragraph (1) with respect to an item if the partner— 
‘‘(A) demonstrates to the satisfaction of the Secretary 
that the treatment of the item on the partner’s return 
is consistent with the treatment of the item on the state-
ment furnished to the partner by the partnership, and 
‘‘(B) elects to have this paragraph apply with respect 
to that item. 
‘‘(d) FINAL DECISION ON CERTAIN POSITIONS NOT BINDING ON 
PARTNERSHIP.—Any final decision with respect to an inconsistent 
position identified under subsection (c) in a proceeding to which 
the partnership is not a party shall not be binding on the partner-
ship. 
‘‘(e) ADDITION TO TAX FOR FAILURE TO COMPLY WITH SECTION.— 
For addition to tax in the case of a partner’s disregard of the 
requirements of this section, see part II of subchapter A of chapter 
68. 
‘‘SEC. 6223. PARTNERS BOUND BY ACTIONS OF PARTNERSHIP. 
‘‘(a) DESIGNATION
OF PARTNERSHIP REPRESENTATIVE.—Each 
partnership shall designate (in the manner prescribed by the Sec-
retary) a partner (or other person) with a substantial presence 
in the United States as the partnership representative who shall 
have the sole authority to act on behalf of the partnership under 
this subchapter. In any case in which such a designation is not 
in effect, the Secretary may select any person as the partnership 
representative. 
‘‘(b) BINDING EFFECT.—A partnership and all partners of such 
partnership shall be bound— 
‘‘(1) by actions taken under this subchapter by the partner-
ship, and 
‘‘(2) by any final decision in a proceeding brought under 
this subchapter with respect to the partnership. 
‘‘PART II—PARTNERSHIP ADJUSTMENTS 
‘‘Sec. 6225. Partnership adjustment by Secretary. 
‘‘Sec. 6226. Alternative to payment of imputed underpayment by partnership. 
‘‘Sec. 6227. Administrative adjustment request by partnership.
H. R. 1314—45 
‘‘SEC. 6225. PARTNERSHIP ADJUSTMENT BY SECRETARY. 
‘‘(a) IN GENERAL.—In the case of any adjustment by the Sec-
retary in the amount of any item of income, gain, loss, deduction, 
or credit of a partnership, or any partner’s distributive share 
thereof— 
‘‘(1) the partnership shall pay any imputed underpayment 
with respect to such adjustment in the adjustment year as 
provided in section 6232, and 
‘‘(2) any adjustment that does not result in an imputed 
underpayment shall be taken into account by the partnership 
in the adjustment year— 
‘‘(A) except as provided in subparagraph (B), as a reduc-
tion in non-separately stated income or an increase in 
non-separately stated loss (whichever is appropriate) under 
section 702(a)(8), or 
‘‘(B) in the case of an item of credit, as a separately 
stated item. 
‘‘(b) DETERMINATION OF IMPUTED UNDERPAYMENTS.—For pur-
poses of this subchapter— 
‘‘(1) IN GENERAL.—Except as provided in subsection (c), 
any imputed underpayment with respect to any partnership 
adjustment for any reviewed year shall be determined— 
‘‘(A) by netting all adjustments of items of income, 
gain, loss, or deduction and multiplying such net amount 
by the highest rate of tax in effect for the reviewed year 
under section 1 or 11, 
‘‘(B) by treating any net increase or decrease in loss 
under subparagraph (A) as a decrease or increase, respec-
tively, in income, and 
‘‘(C) by taking into account any adjustments to items 
of credit as an increase or decrease, as the case may be, 
in the amount determined under subparagraph (A). 
‘‘(2) ADJUSTMENTS TO DISTRIBUTIVE SHARES OF PARTNERS 
NOT NETTED.—In the case of any adjustment which reallocates 
the distributive share of any item from one partner to another, 
such adjustment shall be taken into account under paragraph 
(1) by disregarding— 
‘‘(A) any decrease in any item of income or gain, and 
‘‘(B) any increase in any item of deduction, loss, or 
credit. 
‘‘(c) MODIFICATION OF IMPUTED UNDERPAYMENTS.— 
‘‘(1) IN GENERAL.—The Secretary shall establish procedures 
under which the imputed underpayment amount may be modi-
fied consistent with the requirements of this subsection. 
‘‘(2) AMENDED RETURNS OF PARTNERS.— 
‘‘(A) IN GENERAL.—Such procedures shall provide that 
if— 
‘‘(i) one or more partners file returns (notwith-
standing section 6511) for the taxable year of the part-
ners which includes the end of the reviewed year of 
the partnership, 
‘‘(ii) such returns take into account all adjustments 
under subsection (a) properly allocable to such partners 
(and for any other taxable year with respect to which 
any tax attribute is affected by reason of such adjust-
ments), and
H. R. 1314—46 
‘‘(iii) payment of any tax due is included with 
such return, 
then the imputed underpayment amount shall be deter-
mined without regard to the portion of the adjustments 
so taken into account. 
‘‘(B) REALLOCATION
OF
DISTRIBUTIVE
SHARE.—In the 
case of any adjustment which reallocates the distributive 
share of any item from one partner to another, paragraph 
(2) shall apply only if returns are filed by all partners 
affected by such adjustment. 
‘‘(3) TAX-EXEMPT PARTNERS.—Such procedures shall provide 
for determining the imputed underpayment without regard to 
the portion thereof that the partnership demonstrates is allo-
cable to a partner that would not owe tax by reason of its 
status as a tax-exempt entity (as defined in section 168(h)(2)). 
‘‘(4) MODIFICATION OF APPLICABLE HIGHEST TAX RATES.— 
‘‘(A) IN GENERAL.—Such procedures shall provide for 
taking into account a rate of tax lower than the rate 
of tax described in subsection (b)(1)(A) with respect to 
any portion of the imputed underpayment that the partner-
ship demonstrates is allocable to a partner which— 
‘‘(i) in the case of ordinary income, is a C corpora-
tion, or 
‘‘(ii) in the case of a capital gain or qualified divi-
dend, is an individual. 
In no event shall the lower rate determined under the 
preceding sentence be less than the highest rate in effect 
with respect to the income and taxpayer described in clause 
(i) or clause (ii), as the case may be. For purposes of 
clause (ii), an S corporation shall be treated as an indi-
vidual. 
‘‘(B) PORTION OF IMPUTED UNDERPAYMENT TO WHICH 
LOWER RATE APPLIES.— 
‘‘(i) IN
GENERAL.—Except as provided in clause 
(ii), the portion of the imputed underpayment to which 
the lower rate applies with respect to a partner under 
subparagraph (A) shall be determined by reference 
to the partners’ distributive share of items to which 
the imputed underpayment relates. 
‘‘(ii) RULE IN CASE OF VARIED TREATMENT OF ITEMS 
AMONG PARTNERS.—If the imputed underpayment is 
attributable to the adjustment of more than 1 item, 
and any partner’s distributive share of such items is 
not the same with respect to all such items, then 
the portion of the imputed underpayment to which 
the lower rate applies with respect to a partner under 
subparagraph (A) shall be determined by reference 
to the amount which would have been the partner’s 
distributive share of net gain or loss if the partnership 
had sold all of its assets at their fair market value 
as of the close of the reviewed year of the partnership. 
‘‘(5) OTHER
PROCEDURES
FOR
MODIFICATION
OF
IMPUTED 
UNDERPAYMENT.—The Secretary may by regulations or guid-
ance provide for additional procedures to modify imputed under-
payment amounts on the basis of such other factors as the 
Secretary determines are necessary or appropriate to carry 
out the purposes of this subsection.
H. R. 1314—47 
‘‘(6) YEAR AND DAY FOR SUBMISSION TO SECRETARY.—Any-
thing required to be submitted pursuant to paragraph (1) shall 
be submitted to the Secretary not later than the close of the 
270-day period beginning on the date on which the notice 
of a proposed partnership adjustment is mailed under section 
6231 unless such period is extended with the consent of the 
Secretary. 
‘‘(7) DECISION
OF
SECRETARY.—Any modification of the 
imputed underpayment amount under this subsection shall be 
made only upon approval of such modification by the Secretary. 
‘‘(d) DEFINITIONS.—For purposes of this subchapter— 
‘‘(1) REVIEWED YEAR.—The term ‘reviewed year’ means the 
partnership taxable year to which the item being adjusted 
relates. 
‘‘(2) ADJUSTMENT YEAR.—The term ‘adjustment year’ means 
the partnership taxable year in which— 
‘‘(A) in the case of an adjustment pursuant to the 
decision of a court in a proceeding brought under section 
6234, such decision becomes final, 
‘‘(B) in the case of an administrative adjustment 
request under section 6227, such administrative adjust-
ment request is made, or 
‘‘(C) in any other case, notice of the final partnership 
adjustment is mailed under section 6231. 
‘‘SEC. 6226. ALTERNATIVE TO PAYMENT OF IMPUTED UNDERPAYMENT 
BY PARTNERSHIP. 
‘‘(a) IN GENERAL.—If the partnership— 
‘‘(1) not later than 45 days after the date of the notice 
of final partnership adjustment, elects the application of this 
section with respect to an imputed underpayment, and 
‘‘(2) at such time and in such manner as the Secretary 
may provide, furnishes to each partner of the partnership for 
the reviewed year and to the Secretary a statement of the 
partner’s share of any adjustment to income, gain, loss, deduc-
tion, or credit (as determined in the notice of final partnership 
adjustment), 
section 6225 shall not apply with respect to such underpayment 
and each such partner shall take such adjustment into account 
as provided in subsection (b). The election under paragraph (1) 
shall be made in such manner as the Secretary may provide and, 
once made, shall be revocable only with the consent of the Secretary. 
‘‘(b) ADJUSTMENTS TAKEN INTO ACCOUNT BY PARTNER.— 
‘‘(1) TAX IMPOSED IN YEAR OF STATEMENT.—Each partner’s 
tax imposed by chapter 1 for the taxable year which includes 
the date the statement was furnished under subsection (a) 
shall be increased by the aggregate of the adjustment amounts 
determined under paragraph (2) for the taxable years referred 
to therein. 
‘‘(2) ADJUSTMENT
AMOUNTS.—The adjustment amounts 
determined under this paragraph are— 
‘‘(A) in the case of the taxable year of the partner 
which includes the end of the reviewed year, the amount 
by which the tax imposed under chapter 1 would increase 
if the partner’s share of the adjustments described in sub-
section (a) were taken into account for such taxable year, 
plus
H. R. 1314—48 
‘‘(B) in the case of any taxable year after the taxable 
year referred to in subparagraph (A) and before the taxable 
year referred to in paragraph (1), the amount by which 
the tax imposed under chapter 1 would increase by reason 
of the adjustment to tax attributes under paragraph (3). 
‘‘(3) ADJUSTMENT OF TAX ATTRIBUTES.—Any tax attribute 
which would have been affected if the adjustments described 
in subsection (a) were taken into account for the taxable year 
referred to in paragraph (2)(A) shall— 
‘‘(A) in the case of any taxable year referred to in 
paragraph (2)(B), be appropriately adjusted for purposes 
of applying such paragraph, and 
‘‘(B) in the case of any subsequent taxable year, be 
appropriately adjusted. 
‘‘(c) PENALTIES AND INTEREST.— 
‘‘(1) PENALTIES.—Notwithstanding subsections (a) and (b), 
any penalties, additions to tax, or additional amount shall 
be determined as provided under section 6221 and the partners 
of the partnership for the reviewed year shall be liable for 
any such penalty, addition to tax, or additional amount. 
‘‘(2) INTEREST.—In the case of an imputed underpayment 
with respect to which the application of this section is elected, 
interest shall be determined— 
‘‘(A) at the partner level, 
‘‘(B) from the due date of the return for the taxable 
year to which the increase is attributable (determined by 
taking into account any increases attributable to a change 
in tax attributes for a taxable year under subsection (b)(2)), 
and 
‘‘(C) at the underpayment rate under section 6621(a)(2), 
determined by substituting ‘5 percentage points’ for ‘3 
percentage points’ in subparagraph (B) thereof. 
‘‘SEC. 6227. ADMINISTRATIVE ADJUSTMENT REQUEST BY PARTNER-
SHIP. 
‘‘(a) IN GENERAL.—A partnership may file a request for an 
administrative adjustment in the amount of one or more items 
of income, gain, loss, deduction, or credit of the partnership for 
any partnership taxable year. 
‘‘(b) ADJUSTMENT.—Any such adjustment under subsection (a) 
shall be determined and taken into account for the partnership 
taxable year in which the administrative adjustment request is 
made— 
‘‘(1) by the partnership under rules similar to the rules 
of section 6225 (other than paragraphs (2), (6) and (7) of sub-
section (c) thereof) for the partnership taxable year in which 
the administrative adjustment request is made, or 
‘‘(2) by the partnership and partners under rules similar 
to the rules of section 6226 (determined without regard to 
the substitution described in subsection (c)(2)(C) thereof). 
In the case of an adjustment that would not result in an imputed 
underpayment, paragraph (1) shall not apply and paragraph (2) 
shall apply with appropriate adjustments. 
‘‘(c) PERIOD OF LIMITATIONS.—A partnership may not file such 
a request more than 3 years after the later of— 
‘‘(1) the date on which the partnership return for such 
year is filed, or
H. R. 1314—49 
‘‘(2) the last day for filing the partnership return for such 
year (determined without regard to extensions). 
In no event may a partnership file such a request after a notice 
of an administrative proceeding with respect to the taxable year 
is mailed under section 6231. 
‘‘PART 1—PROCEDURE 
‘‘Sec. 6231. Notice of proceedings and adjustment. 
‘‘Sec. 6232. Assessment, collection, and payment. 
‘‘Sec. 6233. Interest and penalties. 
‘‘Sec. 6234. Judicial review of partnership adjustment. 
‘‘Sec. 6235. Period of limitations on making adjustments. 
‘‘SEC. 6231. NOTICE OF PROCEEDINGS AND ADJUSTMENT. 
‘‘(a) IN GENERAL.—The Secretary shall mail to the partnership 
and the partnership representative— 
‘‘(1) notice of any administrative proceeding initiated at 
the partnership level with respect to an adjustment of any 
item of income, gain, loss, deduction, or credit of a partnership 
for a partnership taxable year, or any partner’s distributive 
share thereof, 
‘‘(2) notice of any proposed partnership adjustment 
resulting from such proceeding, and 
‘‘(3) notice of any final partnership adjustment resulting 
from such proceeding. 
Any notice of a final partnership adjustment shall not be mailed 
earlier than 270 days after the date on which the notice of the 
proposed partnership adjustment is mailed. Such notices shall be 
sufficient if mailed to the last known address of the partnership 
representative or the partnership (even if the partnership has termi-
nated its existence). The first sentence shall apply to any proceeding 
with respect to an administrative adjustment request filed by a 
partnership under section 6227. 
‘‘(b) FURTHER NOTICES RESTRICTED.—If the Secretary mails 
a notice of a final partnership adjustment to any partnership for 
any partnership taxable year and the partnership files a petition 
under section 6234 with respect to such notice, in the absence 
of a showing of fraud, malfeasance, or misrepresentation of a mate-
rial fact, the Secretary shall not mail another such notice to such 
partnership with respect to such taxable year. 
‘‘(c) AUTHORITY TO RESCIND NOTICE WITH PARTNERSHIP CON-
SENT.—The Secretary may, with the consent of the partnership, 
rescind any notice of a partnership adjustment mailed to such 
partnership. Any notice so rescinded shall not be treated as a 
notice of a partnership adjustment for purposes of this subchapter, 
and the taxpayer shall have no right to bring a proceeding under 
section 6234 with respect to such notice. 
‘‘SEC. 6232. ASSESSMENT, COLLECTION, AND PAYMENT. 
‘‘(a) IN
GENERAL.—Any imputed underpayment shall be 
assessed and collected in the same manner as if it were a tax 
imposed for the adjustment year by subtitle A, except that in 
the case of an administrative adjustment request to which section 
6227(b)(1) applies, the underpayment shall be paid when the request 
is filed. 
‘‘(b) LIMITATION ON ASSESSMENT.—Except as otherwise provided 
in this chapter, no assessment of a deficiency may be made (and 
no levy or proceeding in any court for the collection of any amount
H. R. 1314—50 
resulting from such adjustment may be made, begun or prosecuted) 
before— 
‘‘(1) the close of the 90th day after the day on which 
a notice of a final partnership adjustment was mailed, and 
‘‘(2) if a petition is filed under section 6234 with respect 
to such notice, the decision of the court has become final. 
‘‘(c) PREMATURE ACTION MAY BE ENJOINED.—Notwithstanding 
section 7421(a), any action which violates subsection (b) may be 
enjoined in the proper court, including the Tax Court. The Tax 
Court shall have no jurisdiction to enjoin any action under this 
subsection unless a timely petition has been filed under section 
6234 and then only in respect of the adjustments that are the 
subject of such petition. 
‘‘(d) EXCEPTIONS TO RESTRICTIONS ON ADJUSTMENTS.— 
‘‘(1) ADJUSTMENTS
ARISING
OUT
OF
MATH
OR
CLERICAL 
ERRORS.— 
‘‘(A) IN GENERAL.— If the partnership is notified that, 
on account of a mathematical or clerical error appearing 
on the partnership return, an adjustment to a item is 
required, rules similar to the rules of paragraphs (1) and 
(2) of section 6213(b) shall apply to such adjustment. 
‘‘(B) SPECIAL RULE.—If a partnership is a partner in 
another partnership, any adjustment on account of such 
partnership’s failure to comply with the requirements of 
section 6222(a) with respect to its interest in such other 
partnership shall be treated as an adjustment referred 
to in subparagraph (A), except that paragraph (2) of section 
6213(b) shall not apply to such adjustment. 
‘‘(2) PARTNERSHIP MAY WAIVE RESTRICTIONS.—The partner-
ship may at any time (whether or not any notice of partnership 
adjustment has been issued), by a signed notice in writing 
filed with the Secretary, waive the restrictions provided in 
subsection (b) on the making of any partnership adjustment. 
‘‘(e) LIMIT WHERE NO PROCEEDING BEGUN.—If no proceeding 
under section 6234 is begun with respect to any notice of a final 
partnership adjustment during the 90-day period described in sub-
section (b) thereof, the amount for which the partnership is liable 
under section 6225 shall not exceed the amount determined in 
accordance with such notice. 
‘‘SEC. 6233. INTEREST AND PENALTIES. 
‘‘(a) INTEREST AND PENALTIES DETERMINED FROM REVIEWED 
YEAR.— 
‘‘(1) IN GENERAL.—Except to the extent provided in section 
6226(c), in the case of a partnership adjustment for a reviewed 
year— 
‘‘(A) interest shall be computed under paragraph (2), 
and 
‘‘(B) the partnership shall be liable for any penalty, 
addition to tax, or additional amount as provided in para-
graph (3). 
‘‘(2) DETERMINATION
OF
AMOUNT
OF
INTEREST.—The 
interest computed under this paragraph with respect to any 
partnership adjustment is the interest which would be deter-
mined under chapter 67 for the period beginning on the day 
after the return due date for the reviewed year and ending 
on the return due date for the adjustment year (or, if earlier,
H. R. 1314—51 
the date payment of the imputed underpayment is made). 
Proper adjustments in the amount determined under the pre-
ceding sentence shall be made for adjustments required for 
partnership taxable years after the reviewed year and before 
the adjustment year by reason of such partnership adjustment. 
‘‘(3) PENALTIES.—Any penalty, addition to tax, or additional 
amount shall be determined at the partnership level as if 
such partnership had been an individual subject to tax under 
chapter 1 for the reviewed year and the imputed underpayment 
were an actual underpayment (or understatement) for such 
year. 
‘‘(b) INTEREST AND PENALTIES WITH RESPECT TO ADJUSTMENT 
YEAR RETURN.— 
‘‘(1) IN GENERAL.—In the case of any failure to pay an 
imputed underpayment on the date prescribed therefor, the 
partnership shall be liable— 
‘‘(A) for interest as determined under paragraph (2), 
and 
‘‘(B) for any penalty, addition to tax, or additional 
amount as determined under paragraph (3). 
‘‘(2) INTEREST.—Interest determined under this paragraph 
is the interest that would be determined by treating the 
imputed underpayment as an underpayment of tax imposed 
in the adjustment year. 
‘‘(3) PENALTIES.—Penalties, additions to tax, or additional 
amounts determined under this paragraph are the penalties, 
additions to tax, or additional amounts that would be deter-
mined— 
‘‘(A) by applying section 6651(a)(2) to such failure to 
pay, and 
‘‘(B) by treating the imputed underpayment as an 
underpayment of tax for purposes of part II of subchapter 
A of chapter 68. 
‘‘SEC. 6234. JUDICIAL REVIEW OF PARTNERSHIP ADJUSTMENT. 
‘‘(a) IN GENERAL.—Within 90 days after the date on which 
a notice of a final partnership adjustment is mailed under section 
6231 with respect to any partnership taxable year, the partnership 
may file a petition for a readjustment for such taxable year with— 
‘‘(1) the Tax Court, 
‘‘(2) the district court of the United States for the district 
in which the partnership’s principal place of business is located, 
or 
‘‘(3) the Claims Court. 
‘‘(b) JURISDICTIONAL REQUIREMENT FOR BRINGING ACTION IN 
DISTRICT COURT OR CLAIMS COURT.— 
‘‘(1) IN GENERAL.—A readjustment petition under this sec-
tion may be filed in a district court of the United States 
or the Claims Court only if the partnership filing the petition 
deposits with the Secretary, on or before the date the petition 
is filed, the amount of the imputed underpayment (as of the 
date of the filing of the petition) if the partnership adjustment 
was made as provided by the notice of final partnership adjust-
ment. The court may by order provide that the jurisdictional 
requirements of this paragraph are satisfied where there has 
been a good faith attempt to satisfy such requirement and
H. R. 1314—52 
any shortfall of the amount required to be deposited is timely 
corrected. 
‘‘(2) INTEREST
PAYABLE.—Any amount deposited under 
paragraph (1), while deposited, shall not be treated as a pay-
ment of tax for purposes of this title (other than chapter 67). 
‘‘(c) SCOPE OF JUDICIAL REVIEW.—A court with which a petition 
is filed in accordance with this section shall have jurisdiction to 
determine all items of income, gain, loss, deduction, or credit of 
the partnership for the partnership taxable year to which the notice 
of final partnership adjustment relates, the proper allocation of 
such items among the partners, and the applicability of any penalty, 
addition to tax, or additional amount for which the partnership 
may be liable under this subchapter. 
‘‘(d) DETERMINATION OF COURT REVIEWABLE.—Any determina-
tion by a court under this section shall have the force and effect 
of a decision of the Tax Court or a final judgment or decree of 
the district court or the Claims Court, as the case may be, and 
shall be reviewable as such. The date of any such determination 
shall be treated as being the date of the court’s order entering 
the decision. 
‘‘(e) EFFECT
OF DECISION DISMISSING ACTION.—If an action 
brought under this section is dismissed other than by reason of 
a rescission under section 6231(c), the decision of the court dis-
missing the action shall be considered as its decision that the 
notice of final partnership adjustment is correct, and an appropriate 
order shall be entered in the records of the court. 
‘‘SEC. 6235. PERIOD OF LIMITATIONS ON MAKING ADJUSTMENTS. 
‘‘(a) IN GENERAL.—Except as otherwise provided in this section, 
no adjustment under this subpart for any partnership taxable year 
may be made after the later of— 
‘‘(1) the date which is 3 years after the latest of— 
‘‘(A) the date on which the partnership return for such 
taxable year was filed, 
‘‘(B) the return due date for the taxable year, or 
‘‘(C) the date on which the partnership filed an 
administrative adjustment request with respect to such 
year under section 6227, or 
‘‘(2) in the case of any modification of an imputed under-
payment under section 6225(c), the date that is 270 days (plus 
the number of days of any extension consented to by the Sec-
retary under paragraph (4) thereof) after the date on which 
everything required to be submitted to the Secretary pursuant 
to such section is so submitted, or 
‘‘(3) in the case of any notice of a proposed partnership 
adjustment under section 6231(a)(2), the date that is 270 days 
after the date of such notice. 
‘‘(b) EXTENSION BY AGREEMENT.—The period described in sub-
section (a) (including an extension period under this subsection) 
may be extended by an agreement entered into by the Secretary 
and the partnership before the expiration of such period. 
‘‘(c) SPECIAL RULE IN CASE OF FRAUD, ETC.— 
‘‘(1) FALSE RETURN.—In the case of a false or fraudulent 
partnership return with intent to evade tax, the adjustment 
may be made at any time. 
‘‘(2) SUBSTANTIAL OMISSION OF INCOME.—If any partnership 
omits from gross income an amount properly includible therein
H. R. 1314—53 
and such amount is described in section 6501(e)(1)(A), sub-
section (a) shall be applied by substituting ‘6 years’ for ‘3 
years’. 
‘‘(3) NO RETURN.—In the case of a failure by a partnership 
to file a return for any taxable year, the adjustment may 
be made at any time. 
‘‘(4) RETURN FILED BY SECRETARY.—For purposes of this 
section, a return executed by the Secretary under subsection 
(b) of section 6020 on behalf of the partnership shall not be 
treated as a return of the partnership. 
‘‘(d) SUSPENSION WHEN SECRETARY MAILS NOTICE OF ADJUST-
MENT.—If notice of a final partnership adjustment with respect 
to any taxable year is mailed under section 6231, the running 
of the period specified in subsection (a) (as modified by the other 
provisions of this section) shall be suspended— 
‘‘(1) for the period during which an action may be brought 
under section 6234 (and, if a petition is filed under such section 
with respect to such notice, until the decision of the court 
becomes final), and 
‘‘(2) for 1 year thereafter. 
‘‘PART 2—DEFINITIONS AND SPECIAL RULES 
‘‘Sec. 6241. Definitions and special rules. 
‘‘SEC. 6241. DEFINITIONS AND SPECIAL RULES. 
‘‘For purposes of this subchapter— 
‘‘(1) PARTNERSHIP.—The term ‘partnership’ means any part-
nership required to file a return under section 6031(a). 
‘‘(2) PARTNERSHIP
ADJUSTMENT.—The term ‘partnership 
adjustment’ means any adjustment in the amount of any item 
of income, gain, loss, deduction, or credit of a partnership, 
or any partner’s distributive share thereof. 
‘‘(3) RETURN DUE DATE.—The term ‘return due date’ means, 
with respect to the taxable year, the date prescribed for filing 
the partnership return for such taxable year (determined with-
out regard to extensions). 
‘‘(4) PAYMENTS
NONDEDUCTIBLE.—No deduction shall be 
allowed under subtitle A for any payment required to be made 
by a partnership under this subchapter. 
‘‘(5) PARTNERSHIPS HAVING PRINCIPAL PLACE OF BUSINESS 
OUTSIDE UNITED STATES.—For purposes of sections 6234, a prin-
cipal place of business located outside the United States shall 
be treated as located in the District of Columbia. 
‘‘(6) PARTNERSHIPS IN CASES UNDER TITLE 11 OF UNITED 
STATES CODE.— 
‘‘(A) SUSPENSION OF PERIOD OF LIMITATIONS ON MAKING 
ADJUSTMENT, ASSESSMENT, OR COLLECTION.—The running 
of any period of limitations provided in this subchapter 
on making a partnership adjustment (or provided by section 
6501 or 6502 on the assessment or collection of any imputed 
underpayment determined under this subchapter) shall, 
in a case under title 11 of the United States Code, be 
suspended during the period during which the Secretary 
is prohibited by reason of such case from making the adjust-
ment (or assessment or collection) and—
H. R. 1314—54 
‘‘(i) for adjustment or assessment, 60 days there-
after, and 
‘‘(ii) for collection, 6 months thereafter. 
A rule similar to the rule of section 6213(f)(2) shall apply 
for purposes of section 6232(b). 
‘‘(B) SUSPENSION OF PERIOD OF LIMITATION FOR FILING 
FOR JUDICIAL REVIEW.—The running of the period specified 
in section 6234 shall, in a case under title 11 of the United 
States Code, be suspended during the period during which 
the partnership is prohibited by reason of such case from 
filing a petition under section 6234 and for 60 days there-
after. 
‘‘(7) TREATMENT WHERE PARTNERSHIP CEASES TO EXIST.— 
If a partnership ceases to exist before a partnership adjustment 
under this subchapter takes effect, such adjustment shall be 
taken into account by the former partners of such partnership 
under regulations prescribed by the Secretary. 
‘‘(8) EXTENSION TO ENTITIES FILING PARTNERSHIP RETURN.— 
If a partnership return is filed by an entity for a taxable 
year but it is determined that the entity is not a partnership 
(or that there is no entity) for such year, then, to the extent 
provided in regulations, the provisions of this subchapter are 
hereby extended in respect of such year to such entity and 
its items and to persons holding an interest in such entity.’’. 
(2) CLERICAL AMENDMENT.—The table of subchapters for 
chapter 63 of the Internal Revenue Code of 1986, as amended 
by the preceding provisions of this section, is amended by 
inserting after the item relating to subchapter B the following 
new item: 
‘‘SUBCHAPTER C. TREATMENT OF PARTNERSHIPS.’’. 
(d) BINDING
NATURE
OF
PARTNERSHIP
ADJUSTMENT
PRO-
CEEDINGS.—Section 6330(c)(4) of such Code is amended by striking 
‘‘or’’ at the end of subparagraph (A), by striking the period at 
the end of subparagraph (B) and inserting ‘‘; or’’, and by inserting 
after subparagraph (B) the following new subparagraph: 
‘‘(C) a final determination has been made with respect 
to such issue in a proceeding brought under subchapter 
C of chapter 63.’’. 
(e) RESTRICTION ON AUTHORITY TO AMEND PARTNER INFORMA-
TION STATEMENTS.—Section 6031(b) of such Code is amended by 
adding at the end the following: ‘‘Except as provided in the proce-
dures under section 6225(c), with respect to statements under sec-
tion 6226, or as otherwise provided by the Secretary, information 
required to be furnished by the partnership under this subsection 
may not be amended after the due date of the return under sub-
section (a) to which such information relates.’’. 
(f) CONFORMING AMENDMENTS.— 
(1) Section 6031(b) of such Code is amended by striking 
the last sentence. 
(2) Section 6422 of such Code is amended by striking para-
graph (12). 
(3) Section 6501(n) of such Code is amended by striking 
paragraphs (2) and (3) and by striking ‘‘CROSS REFERENCES’’ 
and all that follows through ‘‘For period of limitations’’ and 
inserting ‘‘CROSS REFERENCE.—For period of limitations’’.
H. R. 1314—55 
(4) Section 6503(a)(1) of such Code is amended by striking 
‘‘(or section 6229’’ and all that follows through ‘‘of section 
6230(a))’’. 
(5) Section 6504 of such Code is amended by striking para-
graph (11). 
(6) Section 6511 of such Code is amended by striking sub-
section (g). 
(7) Section 6512(b)(3) of such Code is amended by striking 
the second sentence. 
(8) Section 6515 of such Code is amended by striking para-
graph (6). 
(9) Section 6601(c) of such Code is amended by striking 
the last sentence. 
(10) Section 7421(a) of such Code is amended by striking 
‘‘6225(b), 6246(b)’’ and inserting ‘‘6232(c)’’. 
(11) Section 7422 of such Code is amended by striking 
subsection (h). 
(12) Section 7459(c) of such Code is amended by striking 
‘‘section 6226’’ and all that follows through ‘‘or 6252’’ and 
inserting ‘‘section 6234’’. 
(13) Section 7482(b)(1) of such Code is amended— 
(A) in subparagraph (E), by striking ‘‘section 6226, 
6228, 6247, or 6252’’ and inserting ‘‘section 6234’’, 
(B) by striking subparagraph (F), by striking ‘‘or’’ at 
the end of subparagraph (E) and inserting a period, and 
by inserting ‘‘or’’ at the end of subparagraph (D), and 
(C) in the last sentence, by striking ‘‘section 6226, 
6228(a), or 6234(c)’’ and inserting ‘‘section 6234’’. 
(14) Section 7485(b) of such Code is amended by striking 
‘‘section 6226, 6228(a), 6247, or 6252’’ and inserting ‘‘section 
6234’’. 
(g) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as otherwise provided in this sub-
section, the amendments made by this section shall apply to 
returns filed for partnership taxable years beginning after 
December 31, 2017. 
(2) ADMINISTRATIVE ADJUSTMENT REQUESTS.—In the case 
of administrative adjustment request under section 6227 of 
such Code, the amendments made by this section shall apply 
to requests with respect to returns filed for partnership taxable 
years beginning after December 31, 2017. 
(3) ADJUSTED
PARTNERS
STATEMENTS.—In the case of a 
partnership electing the application of section 6226 of such 
Code, the amendments made by this section shall apply to 
elections with respect to returns filed for partnership taxable 
years beginning after December 31, 2017. 
(4) ELECTION.—A partnership may elect (at such time and 
in such form and manner as the Secretary of the Treasury 
may prescribe) for the amendments made by this section (other 
than the election under section 6221(b) of such Code (as added 
by this Act)) to apply to any return of the partnership filed 
for partnership taxable years beginning after the date of the 
enactment of this Act and before January 1, 2018. 
SEC. 1102. PARTNERSHIP INTERESTS CREATED BY GIFT. 
(a) IN GENERAL.—Section 761(b) of the Internal Revenue Code 
of 1986 is amended by adding at the end the following: ‘‘In the
H. R. 1314—56 
case of a capital interest in a partnership in which capital is 
a material income-producing factor, whether a person is a partner 
with respect to such interest shall be determined without regard 
to whether such interest was derived by gift from any other person.’’. 
(b) CONFORMING AMENDMENTS.—Section 704(e) of such Code 
is amended— 
(1) by striking paragraph (1) and by redesignating para-
graphs (2) and (3) as paragraphs (1) and (2), respectively, 
(2) by striking ‘‘this section’’ in paragraph (2) (as so redesig-
nated) and inserting ‘‘this subsection’’, and 
(3) by striking ‘‘FAMILY PARTNERSHIPS’’ in the heading and 
inserting ‘‘PARTNERSHIP INTERESTS CREATED BY GIFT’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to partnership taxable years beginning after December 
31, 2015. 
TITLE XII—DESIGNATION OF SMALL 
HOUSE ROTUNDA 
SEC. 1201. DESIGNATING SMALL HOUSE ROTUNDA AS ‘‘FREEDOM 
FOYER’’. 
The first floor of the area of the House of Representatives 
wing of the United States Capitol known as the small House 
rotunda is designated the ‘‘Freedom Foyer’’. 
Speaker of the House of Representatives. 
Vice President of the United States and
President of the Senate.