362
under this section shall, insofar as applicable
and not inconsistent with this section, apply in
respect of such payment to the same extent as
if such payment constituted a refund of over-
payments of such tax.
‘‘(B) EXAMINATION OF BOOKS AND WIT-
NESSES.—For the purpose of ascertaining the
correctness of any claim made under this sec-
tion, or the correctness of any payment made in
respect of any such claim, the Secretary shall
have the authority granted by paragraphs (1),
(2), and (3) of section 7602(a) (relating to ex-
amination of books and witnesses) as if the
claimant were the person liable for tax.
‘‘(3) 
COORDINATION
WITH
SECTION
6416,
ETC.—No amount shall be payable under this sec-
tion to any person with respect to any fuel if the
Secretary determines that the amount of tax for
which such payment is sought was not included in
the price paid by such person for such fuel. The
amount which would (but for this sentence) be pay-
able under this section with respect to any fuel shall
be reduced by any other amount which the Secretary
determines is payable under this section, or is re-
363
fundable under any other provision of this title, to
any person with respect to such fuel.
‘‘(4) REGULATIONS.—The Secretary may by
regulations prescribe the conditions, not inconsistent
with the provisions of this section, under which pay-
ments may be made under this section.
‘‘(l) FUELS.—For purposes of this section, the terms
‘gasoline’, ‘diesel fuel’, and ‘aviation fuel’ have the respec-
tive meanings given such terms by sections 4082 and
4092.
‘‘(m) TERMINATION.—Except as otherwise provided
in this section, this section shall not apply to any liquid
purchased after September 30, 1999. The preceding sen-
tence shall not apply to taxes attributable to any Leaking
Underground Storage Tank Trust Fund financing rate.’’
SEC. 803. AUTHORITY TO PROVIDE EXCEPTIONS FROM IN-
FORMATION REPORTING WITH RESPECT TO
DIESEL FUEL AND AVIATION FUEL.
(a) RETURNS BY PRODUCERS AND IMPORTERS.—
Subparagraph (A) of section 4093(c)(4) (relating to re-
turns by producers and importers) is amended by striking
‘‘Each producer’’ and inserting ‘‘Except as provided by
the Secretary by regulations, each producer’’.
(b) RETURNS BY PURCHASERS.—Subparagraph (C)
of section 4093(c)(4) (relating to returns by purchasers)
364
is amended by striking ‘‘Each person’’ and inserting ‘‘Ex-
cept as provided by the Secretary by regulations, each per-
son’’.
SEC. 804. TECHNICAL AND CONFORMING AMENDMENTS.
(1) Sections 6421 and 6427 are hereby re-
pealed.
(2) Section 34 is amended to read as follows:
‘‘SEC. 34. EXCISE TAXES ON FUEL USED FOR EXEMPT PUR-
POSES.
‘‘There shall be allowed as a credit against the tax
imposed by this subtitle for the taxable year an amount
equal to the excess of—
‘‘(1) the aggregate amount payable to the tax-
payer under section 6420 (determined without re-
gard to section 6420(k)(1)) with respect to—
‘‘(A) exempt uses (as defined in section
6420(b)) during such taxable year, and
‘‘(B) qualified diesel-powered highway vehi-
cles purchased during such taxable year, over
‘‘(2) the portion of such amount for which a
claim payable under section 6420(d) is timely filed.’’
(3) Subsection (c) of section 40 is amended by
striking ‘‘subsection (b)(2), (k), or (m)’’ and insert-
ing ‘‘subsection (a)(4) or (b)(4)’’.
365
(4) Paragraph (2) of section 451(e) is amended
by striking ‘‘section 6420(c)(3)’’ and inserting ‘‘sec-
tion 6420(e)(3)’’.
(5) Clause (i) of section 1274(c)(3)(A) is
amended by striking ‘‘section 6420(c)(2)’’ and in-
serting ‘‘section 6420(e)(2)’’.
(6) Sections 874(a) and 1366(f)(1) are each
amended by striking ‘‘gasoline and special’’ and in-
serting ‘‘taxable’’.
(7) Paragraph (2) of section 882(c) is amended
by striking ‘‘gasoline’’ and inserting ‘‘taxable fuels’’.
(8) Subsection (b) of section 4042 is amended
by striking paragraph (3) and by redesignating
paragraph (4) as paragraph (3).
(9) Subsection (b) of section 4082 is amended
by striking ‘‘special fuels referred to in section
4041’’ and inserting ‘‘special motor fuels referred to
in section 4041(a)’’.
(10) Section 4083 is amended to read as fol-
lows:
‘‘SEC. 4083. CROSS REFERENCE.
‘‘For provision allowing a credit or refund for gaso-
line used for exempt purposes, see section 6420.’’
366
(11) Subsections (c)(2) and (d)(2) of section
4091 are each amended by striking ‘‘section
6427(f)(1)’’ and inserting ‘‘section 6420(b)(14)’’.
(12) Paragraph (1) of section 4093(c) is
amended by striking ‘‘by the purchaser’’ and all that
follows and inserting ‘‘by the purchaser in an ex-
empt use (as defined in section 6420(b) other than
paragraph (14) thereof).’’
(13) Subparagraph (C) of section 4093(c)(2) is
amended by striking ‘‘section 6427(b)(2)(A)’’ and
inserting ‘‘section 6420(c)(3)(A)’’.
(14) Clause (i) of section 4093(c)(4)(C) is
amended to read as follows:
‘‘(i) whether such use was an exempt
use (as defined in section 6420(b)) and the
amount of fuel so used,’’.
(15) Section 4093 is amended by redesignating
subsection (e) as subsection (f) and by inserting
after subsection (d) the following new subsection:
‘‘(e) USE BY PRODUCER OR IMPORTER.—If any pro-
ducer or importer uses any taxable fuel, then such pro-
ducer or importer shall be liable for tax under section
4091 in the same manner as if such fuel were sold by
him for such use.’’
367
(16) Subsection (f) of section 4093, as redesig-
nated by paragraph (15), is amended to read as fol-
lows:
‘‘(e) CROSS REFERENCE.—
‘‘For provision allowing a credit or refund for
fuel used for exempt purposes, see section 6420.’’
(17) Section 6206 is amended to read as fol-
lows:
‘‘SEC. 6206. SPECIAL RULES APPLICABLE TO EXCESSIVE
FUEL TAX REFUND CLAIMS.
‘‘Any portion of a payment made under section 6420
which constitutes an excessive amount (as defined in sec-
tion 6675(b)), and any civil penalty provided by section
6675, may be assessed and collected as if—
‘‘(1) it were a tax imposed by the section to
which the claim relates, and
‘‘(2) the person making the claim were liable
for such tax.
The period for assessing any such portion, and for assess-
ing any such penalty, shall be 3 years from the last day
prescribed for filing the claim under section 6420.’’
(18) Subparagraph (A) of section 6416(a)(2) is
amended by striking ‘‘(relating to tax on special
fuels)’’ and inserting ‘‘(relating to special motor
fuels and noncommercial aviation gasoline)’’.
368
(19) Paragraph (2) of section 6416(b) is
amended—
(A) in the matter preceding subparagraph
(A) by striking ‘‘subsection (a) or (d) of section
4041’’ and inserting ‘‘section 4041(a)’’, and
(B) in subparagraph (F) by striking ‘‘spe-
cial fuels referred to in section 4041’’ and in-
serting ‘‘special motor fuels referred to in sec-
tion 4041(a)’’.
(20) Paragraph (9) of section 6504 is amended
to read as follows:
‘‘(9) Assessments to recover excessive amounts
paid under section 6420 (relating to certain taxes on
fuels used for exempt purposes) and assessments of
civil penalties under section 6675 for excessive
claims under section 6420, see section 6206.’’
(21) Subsection (h) of section 6511 is amended
by striking paragraphs (5) and (6), by redesignating
paragraph (7) as paragraph (6), and by inserting
after paragraph (4) the following new paragraph:
‘‘(5) For limitations in the case of payments
under section 6420 (relating to certain taxes on
fuels used for exempt purposes), see section
6420(d).’’
369
(22) Subsection (c) of section 6612 is amended
by striking ‘‘6420 (relating to payments in the case
of gasoline used on the farm for farming purposes)
and 6421 (relating to payments in the case of gaso-
line used for certain nonhighway purposes or by
local transit systems)’’ and inserting ‘‘and 6420 (re-
lating to certain taxes on fuels used for exempt pur-
poses)’’.
(23) Subsection (a) of section 6675 is amended
by striking ‘‘section 6420 (relating to gasoline used
on farms), 6421 (relating to gasoline used for cer-
tain nonhighway purposes or by local transit sys-
tems), or 6427 (relating to fuels not used for taxable
purposes)’’ and inserting ‘‘section 6420 (relating to
certain taxes on fuels used for exempt purposes)’’.
(24) Paragraph (1) of section 6675(b) is
amended by striking ‘‘, 6421, or 6427, as the case
may be,’’.
(25) Section 7210 is amended by striking ‘‘sec-
tions 6420(e)(2), 6421(g)(2), 6427(j)(2)’’ and in-
serting ‘‘sections 6420(k)(3)(B)’’.
(26) Section 7603, subsections (b) and (c)(2) of
section 7604, section 7605, and 7610(c) are each
amended 
by 
striking 
‘‘section 
6420(e)(2),
370
6421(g)(2), 6427(j)(2),’’ each place it appears and
inserting ‘‘section 6420(k)(2)(B)’’.
(27) Sections 7605 and 7609(c)(1) are each
amended 
by 
striking 
‘‘section 
6420(e)(2),
6421(g)(2), or 6427(j)(2)’’ and inserting ‘‘section
6420(k)(2)(B)’’.
(28) Paragraph (1) of section 9502(b) is
amended by striking ‘‘subsections (c) and (e) of sec-
tion 4041 (taxes on aviation fuel)’’ and inserting
‘‘section 4041(b) (relating to taxes on noncommer-
cial aviation gasoline)’’.
(29) Paragraph (2) of section 9502(d) is
amended by striking ‘‘fuel used in aircraft’’ and all
that follows and inserting ‘‘fuel used in aircraft,
under section 6420 (relating to certain taxes on
fuels used for exempt purposes).’’
(30) Paragraph (1) of section 9502(e) is
amended by striking ‘‘4041(c)(1) and’’.
(31) Subparagraph (A) of section 9503(b)(1) is
amended to read as follows:
‘‘(A) section 4041 (relating to special
motor fuels and noncommercial aviation
gasoline),’’.
(32) Paragraph (4) of section 9503(b) is
amended to read as follows:
371
‘‘(4) CERTAIN ADDITIONAL TAXES NOT TRANS-
FERRED TO HIGHWAY TRUST FUND.—For purposes
of paragraphs (1) and (2), the taxes imposed by sec-
tions 4041, 4081, and 4091 shall be taken into ac-
count only to the extent attributable to the Highway
Trust Fund financing rates under such sections.’’
(33)(A) Clause (i) of section 9503(c)(2)(A) is
amended to read as follows:
‘‘(i) the amounts paid before July 1,
1996, under section 6420 (relating to cer-
tain taxes on fuels used for exempt pur-
poses) on the basis of claims filed for peri-
ods ending before October 1, 1995, and’’.
(B) For purposes of section 9503(c)(2)(A)(i) of
the Internal Revenue Code of 1986, the reference to
section 6420 shall be treated as including a ref-
erence to sections 6420, 6421, and 6427 of such
Code as in effect before the enactment of this Act.
(34) Clause (ii) of section 9503(c)(2)(A) is
amended by striking ‘‘gasoline, special fuels, and lu-
bricating oil’’ each place it appears and inserting
‘‘taxable fuels’’.
(35) Subparagraph (D) of section 9503(c)(4) is
amended by striking ‘‘section 4041(a)(2)’’ and in-
serting ‘‘section 4041(a)’’.
372
(36) Subparagraph (A) of section 9503(e)(5) is
amended by striking ‘‘section 6427(g)’’ and inserting
‘‘section 6420(j)’’.
(37) Paragraph (1) of section 9508(b) is
amended to read as follows:
‘‘(1) taxes received in the Treasury under sec-
tion 4041 (relating to special motor fuels and non-
commercial aviation gasoline) to the extent attrib-
utable to the Leaking Underground Storage Tank
Trust Fund financing rates applicable under such
section,’’.
(38) Subparagraph (A) of section 9508(c)(2) is
amended by striking ‘‘equivalent to—’’ and all that
follows and inserting the following: ‘‘equivalent to—
‘‘(i) amounts paid under section 6420
(relating to certain taxes on fuels used for
exempt purposes), and
‘‘(ii) credits allowed under section 34,
with respect to so much of the taxes imposed by
sections 4041, 4081, and 4091 as are attrib-
utable to the Leaking Underground Storage
Tank Trust Fund financing rates applicable
under such sections.’’
(39) The table of sections for subpart C of part
IV of subchapter A of chapter 1 is amended by
373
striking the item relating to section 34 and inserting
the following:
‘‘Sec. 34. Excise taxes on fuels used for exempt purposes.’’
(40) The table of sections for subchapter B of
chapter 31 is amended by striking the item relating
to section 4041 and inserting the following:
‘‘Sec. 4041. Special motor fuels and noncommercial aviation gaso-
line.’’
(41) The table of sections for subpart A of part
III of subchapter A of chapter 32 is amended by
striking the item relating to section 4083 and insert-
ing the following:
‘‘Sec. 4083. Cross reference.’’
(42) The table of sections for subchapter B of
chapter 65 is amended by striking the items relating
to sections 6421 and 6427 and by striking the item
relating to section 6420 and inserting the following
new item:
‘‘Sec. 6420. Certain taxes on fuels used for exempt purposes.’’
(43) The table of sections for subchapter A of
chapter 63 is amended by striking the item relating
to section 6206 and inserting the following new
item:
‘‘Sec. 6206. Special rules applicable to excessive fuel tax refund
claims.’’
374
SEC. 805. EFFECTIVE DATE.
The amendments made by this subtitle shall take ef-
fect on January 1, 1994.
Subtitle B—Provisions Related to
Distilled Spirits, Wines, and Beer
SEC. 811. CREDIT OR REFUND FOR IMPORTED BOTTLED
DISTILLED 
SPIRITS 
RETURNED 
TO 
DIS-
TILLED SPIRITS PLANT.
(a) IN GENERAL.—Paragraph (1) of section 5008(c)
(relating to distilled spirits returned to bonded premises)
is amended by striking ‘‘withdrawn from bonded premises
on payment or determination of tax’’ and inserting ‘‘on
which tax has been determined or paid’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect on the 180th day after the
date of the enactment of this Act.
SEC. 812. AUTHORITY TO CANCEL OR CREDIT EXPORT
BONDS WITHOUT SUBMISSION OF RECORDS.
(a) IN GENERAL.—Subsection (c) of section 5175
(relating to export bonds) is amended by striking ‘‘on the
submission of’’ and all that follows and inserting ‘‘if there
is such proof of exportation as the Secretary may by regu-
lations require.’’
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect on the 180th day after the
date of the enactment of this Act.
375
SEC. 813. REPEAL 
OF 
REQUIRED 
MAINTENANCE 
OF
RECORDS ON PREMISES OF DISTILLED SPIR-
ITS PLANT.
(a) IN GENERAL.—Subsection (c) of section 5207
(relating to records and reports) is amended by striking
‘‘shall be kept on the premises where the operations cov-
ered by the record are carried on and’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect on the 180th day after the
date of the enactment of this Act.
SEC. 814. FERMENTED MATERIAL FROM ANY BREWERY
MAY BE RECEIVED AT A DISTILLED SPIRITS
PLANT.
(a) IN GENERAL.—Paragraph (2) of section 5222(b)
(relating to production, receipt, removal, and use of distill-
ing materials) is amended to read as follows:
‘‘(2) beer conveyed without payment of tax
from brewery premises, beer which has been lawfully
removed from brewery premises upon determination
of tax, or’’.
(b) CLARIFICATION OF AUTHORITY TO PERMIT RE-
MOVAL OF BEER WITHOUT PAYMENT OF TAX FOR USE
AS DISTILLING MATERIAL.—Section 5053 (relating to ex-
emptions) is amended by redesignating subsection (f) as
subsection (i) and by inserting after subsection (e) the fol-
lowing new subsection:
377
(d) EFFECTIVE DATE.—The amendments made by
this section shall take effect on the 180th day after the
date of the enactment of this Act.
SEC. 815. REPEAL OF REQUIREMENT FOR WHOLESALE
DEALERS IN LIQUORS TO POST SIGN.
(a) IN GENERAL.—Section 5115 (relating to sign re-
quired on premises) is hereby repealed.
(b) CONFORMING AMENDMENTS.—
(1) Subsection (a) of section 5681 is amended
by striking ‘‘, and every wholesale dealer in liquors,’’
and by striking ‘‘section 5115(a) or’’.
(2) Subsection (c) of section 5681 is amend-
ed—
(A) by striking ‘‘or wholesale liquor estab-
lishment, on which no sign required by section
5115(a) or’’ and inserting ‘‘on which no sign
required by’’, and
(B) by striking ‘‘or wholesale liquor estab-
lishment, or who’’ and inserting ‘‘or who’’.
(3) The table of sections for subpart D of part
II of subchapter A of chapter 51 is amended by
striking the item relating to section 5115.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on the date of the enactment
of this Act.
378
SEC. 816. REFUND OF TAX TO WINE RETURNED TO BOND
NOT LIMITED TO UNMERCHANTABLE WINE.
(a) IN GENERAL.—Subsection (a) of section 5044
(relating to refund of tax on unmerchantable wine) is
amended by striking ‘‘as unmerchantable’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 5361 is amended by striking
‘‘unmerchantable’’.
(2) The section heading for section 5044 is
amended by striking ‘‘UNMERCHANTABLE’’.
(3) The item relating to section 5044 in the
table of sections for subpart C of part I of sub-
chapter A of chapter 51 is amended by striking
‘‘unmerchantable’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on the 180th day after the
date of the enactment of this Act.
SEC. 817. USE OF ADDITIONAL AMELIORATING MATERIAL
IN CERTAIN WINES.
(a) IN GENERAL.—Subparagraph (D) of section
5384(b)(2) (relating to ameliorated fruit and berry wines)
is amended by striking ‘‘loganberries, currants, or goose-
berries,’’ and inserting ‘‘any fruit or berry with a natural
fixed acid of 20 parts per thousand or more (before any
correction of such fruit or berry)’’.
379
(b) EFFECTIVE DATE.—The amendment made by
this section shall take effect on the 180th day after the
date of the enactment of this Act.
SEC. 818. DOMESTICALLY-PRODUCED BEER MAY BE WITH-
DRAWN FREE OF TAX FOR USE OF FOREIGN
EMBASSIES, LEGATIONS, ETC.
(a) IN GENERAL.—Section 5053 (relating to exemp-
tions) is amended by inserting after subsection (f) the fol-
lowing new subsection:
‘‘(g) REMOVALS FOR USE OF FOREIGN EMBASSIES,
LEGATIONS, ETC.—
‘‘(1) IN GENERAL.—Subject to such regulations
as the Secretary may prescribe—
‘‘(A) beer may be withdrawn from the
brewery without payment of tax for transfer to
any customs bonded warehouse for entry pend-
ing withdrawal therefrom as provided in sub-
paragraph (B), and
‘‘(B) beer entered into any customs bonded
warehouse under subparagraph (A) may be
withdrawn for consumption in the United
States by, and for the official and family use of,
such foreign governments, organizations, and
individuals as are entitled to withdraw imported
beer from such warehouses free of tax.
380
Beer transferred to any customs bonded warehouse
under subparagraph (A) shall be entered, stored,
and accounted for in such warehouse under such
regulations and bonds as the Secretary may pre-
scribe, and may be withdrawn therefrom by such
governments, organizations, and individuals free of
tax under the same conditions and procedures as im-
ported beer.
‘‘(2) OTHER RULES TO APPLY.—Rules similar
to the rules of paragraphs (2) and (3) of section
5362(e) of such section shall apply for purposes of
this subsection.’’
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect on the 180th day after the
date of the enactment of this Act.
SEC. 819. BEER MAY BE WITHDRAWN FREE OF TAX FOR
DESTRUCTION.
(a) IN GENERAL.—Section 5053 is amended by in-
serting after subsection (g) the following new subsection:
‘‘(h) REMOVALS
FOR DESTRUCTION.—Subject to
such regulations as the Secretary may prescribe, beer may
be removed from the brewery without payment of tax for
destruction.’’
381
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect on the 180th day after the
date of the enactment of this Act.
SEC. 820. AUTHORITY 
TO 
ALLOW 
DRAWBACK 
ON 
EX-
PORTED BEER WITHOUT SUBMISSION OF
RECORDS.
(a) IN GENERAL.—The first sentence of section 5055
(relating to drawback of tax on beer) is amended by strik-
ing ‘‘found to have been paid’’ and all that follows and
inserting ‘‘paid on such beer if there is such proof of ex-
portation as the Secretary may by regulations require.’’
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect on the 180th day after the
date of the enactment of this Act.
SEC. 821. TRANSFER TO BREWERY OF BEER IMPORTED IN
BULK WITHOUT PAYMENT OF TAX.
(a) IN GENERAL.—Part II of subchapter G of chap-
ter 51 is amended by adding at the end thereof the follow-
ing new section:
‘‘SEC. 5418. BEER IMPORTED IN BULK.
‘‘Beer imported or brought into the United States in
bulk containers may, under such regulations as the Sec-
retary may prescribe, be withdrawn from customs custody
and transferred in such bulk containers to the premises
of a brewery without payment of the internal revenue tax
382
imposed on such beer. The proprietor of a brewery to
which such beer is transferred shall become liable for the
tax on the beer withdrawn from customs custody under
this section upon release of the beer from customs custody,
and the importer, or the person bringing such beer into
the United States, shall thereupon be relieved of the liabil-
ity for such tax.’’
(b) CLERICAL AMENDMENT.—The table of sections
for such part II is amended by adding at the end thereof
the following new item:
‘‘Sec. 5418. Beer imported in bulk.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on the 180th day after the
date of the enactment of this Act.
Subtitle C—Other Excise Tax
Provisions
SEC. 831. AUTHORITY TO GRANT EXEMPTIONS FROM REG-
ISTRATION REQUIREMENTS.
(a) IN GENERAL.—The first sentence of section 4222
(relating to registration) is amended to read as follows:
‘‘Except as provided in subsection (b), section 4221 shall
not apply with respect to the sale of any article by or to
any person who is required by the Secretary to be reg-
istered under this section and who is not so registered.’’
383
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply to sales after the 180th day
after the date of the enactment of this Act.
SEC. 832. REPEAL OF EXPIRED PROVISIONS.
(a) PIGGY-BACK TRAILERS.—Section 4051 is amend-
ed by striking subsection (d) and by redesignating sub-
section (e) as subsection (d).
(b) DEEP SEABED MINING.—
(1) Subchapter F of chapter 36 (relating to tax
on removal of hard mineral resources from deep sea-
bed) is hereby repealed.
(2) The table of subchapters for chapter 36 is
amended by striking the item relating to subchapter
F.
TITLE IX—ADMINISTRATIVE
PROVISIONS
Subtitle A—General Provisions
SEC. 901. SIMPLIFICATION OF EMPLOYMENT TAXES ON
DOMESTIC SERVICES.
(a) THRESHOLD REQUIREMENT FOR SOCIAL SECU-
RITY TAXES.—
(1) Subparagraph (B) of section 3121(a)(7)
(defining wages) is amended to read as follows:
‘‘(B) cash remuneration paid by an em-
ployer in any calendar year to an employee for
384
domestic service in a private home of the em-
ployer, if the cash remuneration paid in such
year by the employer to the employee for such
service is less than $300. As used in this sub-
paragraph, the term ‘domestic service in a pri-
vate home of the employer’ does not include
service described in subsection (g)(5);’’
(2) Subparagraph (B) of section 209(a)(6) of
the Social Security Act is amended to read as fol-
lows:
‘‘(B) Cash remuneration paid by an em-
ployer in any calendar year to an employee for
domestic service in a private home of the em-
ployer, if the cash remuneration paid in such
year by the employer to the employee for such
service is less than $300. As used in this sub-
paragraph, the term ‘domestic service in a pri-
vate home of the employer’ does not include
service described in section 210(f)(5).’’
(3) The second sentence of section 3102(a) is
amended—
(A) by striking ‘‘calendar quarter’’ each
place it appears and inserting ‘‘calendar year’’,
and
385
(B) by striking ‘‘$50’’ and inserting
‘‘$300’’.
(b) COORDINATION OF COLLECTION OF DOMESTIC
SERVICE EMPLOYMENT WITH COLLECTION OF INCOME
TAXES.—
(1) IN GENERAL.—Chapter 25 (relating to gen-
eral provisions relating to employment taxes) is
amended by adding at the end thereof the following
new section:
‘‘SEC. 3510. COORDINATION OF COLLECTION OF DOMESTIC
SERVICE EMPLOYMENT TAXES WITH COLLEC-
TION OF INCOME TAXES.
‘‘(a) GENERAL RULE.—Except as otherwise provided
in this section—
‘‘(1) returns with respect to domestic service
employment taxes shall be made on a calendar year
basis,
‘‘(2) any such return for any calendar year
shall be filed on or before the 15th day of the fourth
month following the close of the employer’s taxable
year which begins in such calendar year, and
‘‘(3) no requirement to make deposits (or to
pay installments under section 6157) shall apply
with respect to such taxes.
386
‘‘(b) DOMESTIC SERVICE EMPLOYMENT TAXES SUB-
JECT TO ESTIMATED TAX PROVISIONS.—
‘‘(1) IN GENERAL.—Solely for purposes of sec-
tion 6654, domestic service employment taxes im-
posed with respect to any calendar year shall be
treated as a tax imposed by chapter 2 for the tax-
able year of the employer which begins in such cal-
endar year.
‘‘(2) ANNUALIZATION.—Under regulations pre-
scribed by the Secretary, appropriate adjustments
shall be made in the application of section
6654(d)(2) in respect of the amount treated as tax
under paragraph (1).
‘‘(3) TRANSITIONAL
RULE.—For purposes of
applying section 6654 to a taxable year beginning in
1992, the amount referred to in clause (ii) of section
6654(d)(1)(B) shall be increased by 90 percent of
the amount treated as tax under paragraph (1) for
such taxable year.
‘‘(c) DOMESTIC SERVICE EMPLOYMENT TAXES.—
For purposes of this section, the term ‘domestic service
employment taxes’ means—
‘‘(1) any taxes imposed by chapter 21 or 23 on
remuneration paid for domestic service in a private
home of the employer, and
387
‘‘(2) any amount withheld from such remunera-
tion pursuant to an agreement under section
3402(p).
For purposes of this subsection, the term ‘domestic service
in a private home of the employer’ does not include service
described in section 3121(g)(5).
‘‘(d) EXCEPTION WHERE EMPLOYER LIABLE FOR
OTHER EMPLOYMENT TAXES.—To the extent provided in
regulations prescribed by the Secretary, this section shall
not apply to any employer for any calendar year if such
employer is liable for any tax under this subtitle with re-
spect to remuneration for services other than domestic
service in a private home of the employer.
‘‘(e) GENERAL REGULATORY AUTHORITY.—The Sec-
retary shall prescribe such regulations as may be nec-
essary or appropriate to carry out the purposes of this
section. Such regulations may treat domestic service em-
ployment taxes as taxes imposed by chapter 1 for purposes
of coordinating the assessment and collection of such em-
ployment taxes with the assessment and collection of do-
mestic employers’ income taxes.
‘‘(f) AUTHORITY TO ENTER INTO AGREEMENTS TO
COLLECT STATE UNEMPLOYMENT TAXES.—
‘‘(1) IN
GENERAL.—The Secretary is hereby
authorized to enter into an agreement with any
388
State to collect, as the agent of such State, such
State’s unemployment taxes imposed on remunera-
tion paid for domestic service in a private home of
the employer. Any taxes to be collected by the Sec-
retary pursuant to such an agreement shall be treat-
ed as domestic service employment taxes for pur-
poses of this section.
‘‘(2) TRANSFERS
TO
STATE
ACCOUNT.—Any
amount collected under an agreement referred to in
paragraph (1) shall be transferred by the Secretary
to the account of the State in the Unemployment
Trust Fund.
‘‘(3) SUBTITLE
F
MADE
APPLICABLE.—For
purposes of subtitle F, any amount required to be
collected under an agreement under paragraph (1)
shall be treated as a tax imposed by chapter 23.
‘‘(4) STATE.—For purposes of this subsection,
the term ‘State’ has the meaning given such term by
section 3306(j)(1).’’
(2) CLERICAL AMENDMENT.—The table of sec-
tions for chapter 25 is amended by adding at the
end thereof the following:
‘‘Sec. 3510. Coordination of collection of domestic service employ-
ment taxes with collection of income taxes.’’
389
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to remuneration paid in calendar
years after 1993.
SEC. 902. USE OF REPRODUCTIONS OF RETURNS STORED
IN DIGITAL IMAGE FORMAT.
(a) IN GENERAL.—Paragraph (2) of section 6103(p)
(relating to procedure and recordkeeping) is amended by
adding at the end thereof the following new subparagraph:
‘‘(D) REPRODUCTION
FROM
DIGITAL
IM-
AGES.—For purposes of this paragraph, the
term ‘reproduction’ includes a reproduction
from digital images.’’
(b) STUDY.—The Comptroller General of the United
States shall conduct a study of available digital image
technology for the purpose of determining the extent to
which reproductions of documents stored using that tech-
nology accurately reflect the data on the original document
and the appropriate period for retaining the original docu-
ment. Not later than 1 year after the date of the enact-
ment of this Act, a report on the results of such study
shall be submitted to the Committee on Ways and Means
of the House of Representatives and the Committee on
Finance of the Senate.
395
by not taking into account any interest,
penalties, or additions to tax).’’
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply for purposes of determining in-
terest for periods after December 31, 1990.
SEC. 907. SPECIAL RULE FOR CORPORATE ESTIMATED
TAXES WHERE NO LIABILITY FOR PRECED-
ING YEAR.
(a) GENERAL RULES.—Paragraph (1) of section
6655(d) (relating to amount of required installments) is
amended—
(1) by striking the last sentence of subpara-
graph (B), and
(2) by adding at the end thereof the following
new subparagraph:
‘‘(C) SPECIAL RULES.—
‘‘(i) Clause (ii) of subparagraph (B)
shall apply only if the preceding taxable
year was a taxable year of 12 months and
the corporation filed a return for such pre-
ceding taxable year.
‘‘(ii) If—
‘‘(I) the requirements of clause
(i) are met with respect to the preced-
ing taxable year,