An original bill to amend the Internal Revenue Code of 1986 to increase the limitation on eligibility for the alternative tax for certain small insurance companies.

Bill: 114-s-905
Sponsor: full_name: Sen. Hatch, Orrin G. [R-UT]
Introduced: 2015-04-14
Policy area: Taxation
Subjects: Congressional oversight

Debt collection

Government studies and investigations

Income tax rates

Inflation and prices

Insurance industry and regulation

Medicare

Small business

Tax administration and collection, taxpayers

Transfer and inheritance taxes
Latest action: action_date: 2015-04-14
text: Placed on Senate Legislative Calendar under General Orders. Calendar No. 39.

Summaries:
action_date: 2015-04-14
action_desc: Introduced in Senate
text: <p>This bill amends the Internal Revenue Code to: (1) expand the eligibility of certain small insurance companies (other than life insurance companies) for the alternative corporate income tax by increasing the premium limitation used to determine such eligibility to $2.2 million (from $1.2 million), with an annual inflation adjustment to such increased amount after 2015; and (2) increase from 30% to 45% the rate of the continuous levy on payments to Medicare providers and suppliers for unpaid taxes. The Department of the Treasury must submit to the Senate Finance Committee by February 11, 2016, a report on the abuse of captive insurance companies for estate planning purposes. </p>

action_date: 2015-04-14
action_desc: Reported to Senate without amendment
text: <p>(This measure has not been amended since it was introduced. The summary has been expanded because action occurred on the measure.)</p> <p>(Sec. 1) This bill amends the Internal Revenue Code to expand the eligibility of certain small insurance companies (other than life insurance companies) for the alternative corporate income tax by increasing the premium limitation used to determine such eligibility to $2.2 million (from $1.2 million), with an annual inflation adjustment to such increased amount after 2015. This increase is applicable to taxable years beginning after the enactment of this Act. </p> <p>The Department of the Treasury must submit to the Senate Finance Committee by February 11, 2016, a report on the abuse of captive insurance companies for estate planning purposes, including legislative recommendations for addressing any such abuses. </p> <p>(Sec. 2) This bill also increases from 30% to 45% the rate of the continuous levy on payments made after 180 days after the enactment of this Act to Medicare providers and suppliers for unpaid taxes. </p>

tv_txt: II Calendar No. 39 114th CONGRESS 1st Session S. 905 [Report No. 114–16] IN THE SENATE OF THE UNITED STATES April 14, 2015 Mr. Hatch , from the Committee on Finance , reported the following original bill; which was read twice and placed on the calendar A BILL To amend the Internal Revenue Code of 1986 to increase the limitation on eligibility for the alternative tax for certain small insurance companies.

1. Increase in limitation on eligibility for alternative tax for certain small insurance companies (a) Increase in limitation on premiums (1) In general Clause (i) of section 831(b)(2)(A) of the Internal Revenue Code of 1986 is amended by striking $1,200,000 and inserting $2,200,000 . (2) Inflation Adjustment Paragraph (2) of section 831(b) of such Code is amended by adding at the end the following new subparagraph: (C) Inflation adjustment In the case of any taxable year beginning in a calendar year after 2015, the dollar amount set forth in subparagraph (A)(i) shall be increased by an amount equal to— (i) such dollar amount, multiplied by (ii) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting calendar year 2013 for calendar year 1992 in subparagraph (B) thereof. If the amount as adjusted under the preceding sentence is not a multiple of $50,000, such amount shall be rounded to the next lowest multiple of $50,000. . (b) Study Not later than February 11, 2016, the Secretary of the Treasury shall submit to the Committee on Finance of the Senate a report on the abuse of captive insurance companies for estate planning purposes. Such report shall include legislative recommendations for addressing any such abuses. (c) Effective Date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act. 2. Increase in continuous levy (a) In general Paragraph (3) of section 6331(h) of the Internal Revenue Code of 1986 is amended by striking 30 percent and inserting 45 percent . (b) Effective date The amendment made by this section shall apply to payments made after 180 days after the date of the enactment of this Act.

April 14, 2015 Read twice and placed on the calendar