A bill to repeal the violation of sovereign nations' laws and privacy matters.

Bill: 114-s-663
Sponsor: full_name: Sen. Paul, Rand [R-KY]
Introduced: 2015-03-04
Policy area: Taxation
Subjects: Bank accounts, deposits, capital

Civil actions and liability

Foreign and international banking

Foreign property

Tax administration and collection, taxpayers

U.S. and foreign investments
Latest action: action_date: 2015-03-04
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2015-03-04
action_desc: Introduced in Senate
text: <p>Amends the Internal Revenue Code, with respect to tax administration requirements for foreign-source income and assets, to repeal:&nbsp; (1) withholding requirements for payments to foreign financial institutions and other foreign entities, (2) information reporting for foreign financial assets, (3) penalties for underpayments of tax attributable to undisclosed foreign financial assets, (4) reporting requirements for shareholders of a passive foreign investment company and U.S. owners of foreign trusts, and (5) the additional penalty for failure to file required notices and information returns for certain foreign trusts. </p>

tv_txt: II 114th CONGRESS 1st Session S. 663 IN THE SENATE OF THE UNITED STATES March 4, 2015 Mr. Paul (for himself and Mr. Wicker ) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To repeal the violation of sovereign nations’ laws and privacy matters.

1. Repeal of withholding and reporting with respect to certain foreign accounts (a) In general The Internal Revenue Code of 1986 is amended by striking chapter 4. (b) Conforming amendments for rules for electronically filed returns Section 6011(e)(4) of such Code is amended— (1) by striking (as defined in section 1471(d)(5)) and inserting (as defined in section 6038D(h)(3)) , and (2) by striking or 1474(a) . (c) Conforming amendment related to substitute dividends Section 871(l) of such Code is amended by striking chapters 3 and 4 both places it appears and inserting chapter 3 . (d) Other Conforming amendments (1) Section 6414 of such Code is amended by striking or 4 . (2) Paragraph (1) of section 6501(b) of such Code is amended by striking 4, . (3) Paragraph (2) of section 6501(b) of such Code is amended— (A) by striking 4, , and (B) by striking and witholding taxes in the heading and inserting taxes and tax imposed by chapter 3 . (4) Paragraph (3) of section 6513(b) of such Code is amended— (A) by striking or 4 , and (B) by striking or 1474(b) . (5) Section 6513(c) of such Code is amended by striking 4, . (6) Section 6611(e)(4) of the Internal Revenue Code of 1986 is amended by striking or 4 . (7) Paragraph (1) of section 6724(d) of such Code is amended by striking under chapter 4 or . (8) Paragraph (2) of section 6724(d) of such Code is amended by striking or 4 . (e) Effective date The amendments made by this section shall apply to payments made after the date of the enactment of this Act. 2. Repeal of information reporting with respect to foreign financial assets (a) In general Subpart A of part III of subchapter A of chapter 61 of the Internal Revenue Code of 1986 is amended by striking section 6038D. (b) Repeal of modification of statute of limitations for significant omission of income in connection with foreign assets (1) Paragraph (1) of section 6501(e) of the Internal Revenue Code of 1986 is amended by striking subparagraph (A) and by redesignating subparagraphs (B) and (C) as subparagraphs (A) and (B), respectively. (2) Subparagraph (A) of section 6501(e) of such Code, as redesignated by paragraph (1), is amended by striking all that precedes clause (i) and inserting the following: (A) General rule If the taxpayer omits from gross income an amount properly included therein which is in excess of 25 percent of the amount of gross income stated in the return, the tax may be assessed, or a proceeding in court for the collection of such tax may be begun without assessment, at any time within 6 years after the return was filed. For purposes of this subparagraph— . (3) Paragraph (2) of section 6501(e) of such Code is amended by striking and such amount is described in clause (i) or (ii) of section 6501(e)(1)(A) and inserting which is in excess of 25 percent of the amount of gross income stated in its return . (4) Paragraph (8) of section 6501(c) is amended— (A) by striking pursuant to an election under section 1295(b) or , (B) by striking 1298(f) , and (C) by striking 6038D, . (c) Clerical amendment The table of sections for subpart A of part III of subchapter A of chapter 61 of such Code is amended by striking the item related to section 6038D. (d) Effective date (1) In general Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act. (2) Returns The amendments made by subsection (b) shall apply to returns filed after the date of the enactment of this Act. 3. Repeal of penalties for underpayments attributable to undisclosed foreign financial assets (a) In general Section 6662 of the Internal Revenue Code of 1986 is amended— (1) in subsection (b), by striking paragraph (7), and (2) by striking subsection (j). (b) Effective date The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act. 4. Repeal of reporting of activities with respect to passive foreign investment companies (a) In general Section 1298 of the Internal Revenue Code of 1986 is amended by striking subsection (f) and by redesignating subsection (g) as subsection (f). (b) Conforming amendment Section 1291(e) of such Code is amended by striking and (d) and inserting , (d), and (f) . (c) Effective date The amendments made by this section shall take effect on the date of the enactment of this Act. 5. Repeal of reporting requirement for United States owners of foreign trusts (a) In general Paragraph (1) of section 6048(b) is amended by striking shall submit such information as the Secretary may prescribe with respect to such trust for such year and . (b) Effective date The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act. 6. Repeal of minimum penalty with respect to failure to report on certain foreign trusts (a) In general Section 6677(a) of the Internal Revenue Code of 1986 is amended— (1) by striking the greater of $10,000 or , and (2) by striking the last sentence and inserting the following: In no event shall the penalty under this subsection with respect to any failure exceed the gross reportable amount. . (b) Effective date The amendments made by this section shall apply to notices and returns required to be filed after the date of the enactment of this Act.