Bipartisan Budget Act of 2015
PL 114-74 (H.R.1314), enacted 11/02/2015

129 STAT. 584 
PUBLIC LAW 114–74—NOV. 2, 2015 
Public Law 114–74 
114th Congress 
An Act 
To amend the Internal Revenue Code of 1986 to provide for a right to an administra-
tive appeal relating to adverse determinations of tax-exempt status of certain 
organizations. 
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the ‘‘Bipartisan 
Budget Act of 2015’’. 
(b) TABLE OF CONTENTS.—The table of contents of this Act 
is as follows: 
Sec. 1. Short title; table of contents. 
TITLE I—BUDGET ENFORCEMENT 
Sec. 101. Amendments to the Balanced Budget and Emergency Deficit Control Act 
of 1985. 
Sec. 102. Authority for fiscal year 2017 budget resolution in the Senate. 
TITLE II—AGRICULTURE 
Sec. 201. Standard Reinsurance Agreement. 
TITLE III—COMMERCE 
Sec. 301. Debt collection improvements. 
TITLE IV—STRATEGIC PETROLEUM RESERVE 
Sec. 401. Strategic Petroleum Reserve test drawdown and sale notification and def-
inition change. 
Sec. 402. Strategic Petroleum Reserve mission readiness optimization. 
Sec. 403. Strategic Petroleum Reserve drawdown and sale. 
Sec. 404. Energy Security and Infrastructure Modernization Fund. 
TITLE V—PENSIONS 
Sec. 501. Single employer plan annual premium rates. 
Sec. 502. Pension Payment Acceleration. 
Sec. 503. Mortality tables. 
Sec. 504. Extension of current funding stabilization percentages to 2018, 2019, and 
2020. 
TITLE VI—HEALTH CARE 
Sec. 601. Maintaining 2016 Medicare part B premium and deductible levels con-
sistent with actuarially fair rates. 
Sec. 602. Applying the Medicaid additional rebate requirement to generic drugs. 
Sec. 603. Treatment of off-campus outpatient departments of a provider. 
Sec. 604. Repeal of automatic enrollment requirement. 
TITLE VII—JUDICIARY 
Sec. 701. Civil monetary penalty inflation adjustments. 
Sec. 702. Crime Victims Fund. 
Sec. 703. Assets Forfeiture Fund. 
TITLE VIII—SOCIAL SECURITY 
Sec. 801. Short title. 
26 USC 1 note. 
Bipartisan 
Budget Act 
of 2015. 
Nov. 2, 2015 
[H.R. 1314] 
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129 STAT. 585 
PUBLIC LAW 114–74—NOV. 2, 2015 
Subtitle A—Ensuring Correct Payments and Reducing Fraud 
Sec. 811. Expansion of cooperative disability investigations units. 
Sec. 812. Exclusion of certain medical sources of evidence. 
Sec. 813. New and stronger penalties. 
Sec. 814. References to Social Security and Medicare in electronic communications. 
Sec. 815. Change to cap adjustment authority. 
Subtitle B—Promoting Opportunity for Disability Beneficiaries 
Sec. 821. Temporary reauthorization of disability insurance demonstration project 
authority. 
Sec. 822. Modification of demonstration project authority. 
Sec. 823. Promoting opportunity demonstration project. 
Sec. 824. Use of electronic payroll data to improve program administration. 
Sec. 825. Treatment of earnings derived from services. 
Sec. 826. Electronic reporting of earnings. 
Subtitle C—Protecting Social Security Benefits 
Sec. 831. Closure of unintended loopholes. 
Sec. 832. Requirement for medical review. 
Sec. 833. Reallocation of payroll tax revenue. 
Sec. 834. Access to financial information for waivers and adjustments of recovery. 
Subtitle D—Relieving Administrative Burdens and Miscellaneous Provisions 
Sec. 841. Interagency coordination to improve program administration. 
Sec. 842. Elimination of quinquennial determinations relating to wage credits for 
military service prior to 1957. 
Sec. 843. Certification of benefits payable to a divorced spouse of a railroad worker 
to the Railroad Retirement Board. 
Sec. 844. Technical amendments to eliminate obsolete provisions. 
Sec. 845. Reporting requirements to Congress. 
Sec. 846. Expedited examination of administrative law judges. 
TITLE IX—TEMPORARY EXTENSION OF PUBLIC DEBT LIMIT 
Sec. 901. Temporary extension of public debt limit. 
Sec. 902. Restoring congressional authority over the national debt. 
TITLE X—SPECTRUM PIPELINE 
Sec. 1001. Short title. 
Sec. 1002. Definitions. 
Sec. 1003. Rule of construction. 
Sec. 1004. Identification, reallocation, and auction of Federal spectrum. 
Sec. 1005. Additional uses of Spectrum Relocation Fund. 
Sec. 1006. Plans for auction of certain spectrum. 
Sec. 1007. FCC auction authority. 
Sec. 1008. Reports to Congress. 
TITLE XI—REVENUE PROVISIONS RELATED TO TAX COMPLIANCE 
Sec. 1101. Partnership audits and adjustments. 
Sec. 1102. Partnership interests created by gift. 
TITLE XII—DESIGNATION OF SMALL HOUSE ROTUNDA 
Sec. 1201. Designating small House rotunda as ‘‘Freedom Foyer’’. 
TITLE I—BUDGET ENFORCEMENT 
SEC. 101. AMENDMENTS TO THE BALANCED BUDGET AND EMERGENCY 
DEFICIT CONTROL ACT OF 1985. 
(a) REVISED DISCRETIONARY SPENDING LIMITS.—Section 251(c) 
of the Balanced Budget and Emergency Deficit Control Act of 1985 
(2 U.S.C. 901(c)) is amended by striking paragraphs (3) and (4) 
and inserting the following: 
‘‘(3) for fiscal year 2016— 
‘‘(A) for the revised security category, $548,091,000,000 
in new budget authority; and 
‘‘(B) 
for 
the 
revised 
nonsecurity 
category 
$518,491,000,000 in new budget authority; 
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129 STAT. 586 
PUBLIC LAW 114–74—NOV. 2, 2015 
‘‘(4) for fiscal year 2017— 
‘‘(A) for the revised security category, $551,068,000,000 
in new budget authority; and 
‘‘(B) 
for 
the 
revised 
nonsecurity 
category, 
$518,531,000,000 in new budget authority;’’. 
(b) DIRECT SPENDING ADJUSTMENTS FOR FISCAL YEARS 2016 
AND 2017.—Section 251A of the Balanced Budget and Emergency 
Deficit Control Act of 1985 (2 U.S.C. 901a), is amended— 
(1) in paragraph (5)(B), by striking ‘‘paragraph (10)’’ and 
inserting ‘‘paragraphs (10) and (11)’’; and 
(2) by adding at the end the following: 
‘‘(11) IMPLEMENTING
DIRECT
SPENDING
REDUCTIONS
FOR 
FISCAL YEARS 2016 AND 2017.—(A) OMB shall make the calcula-
tions necessary to implement the direct spending reductions 
calculated pursuant to paragraphs (3) and (4) without regard 
to the amendment made to section 251(c) revising the discre-
tionary spending limits for fiscal years 2016 and 2017 by the 
Bipartisan Budget Act of 2015. 
‘‘(B) Paragraph (5)(B) shall not be implemented for fiscal 
years 2016 and 2017.’’. 
(c) EXTENSION OF DIRECT SPENDING REDUCTIONS FOR FISCAL 
YEAR 2025.—Section 251A(6) of the Balanced Budget and Emer-
gency Deficit Control Act of 1985 (2 U.S.C. 901a(6)) is amended— 
(1) in subparagraph (B), in the matter preceding clause 
(i), by striking ‘‘and for fiscal year 2024’’ and by inserting 
‘‘for fiscal year 2024, and for fiscal year 2025’’; 
(2) by striking subparagraph (C) and redesignating 
subparagraph (D) as subparagraph (C); and 
(3) in subparagraph (C) (as so redesignated), by striking 
‘‘fiscal year 2024’’ and inserting ‘‘fiscal year 2025’’. 
(d) OVERSEAS CONTINGENCY OPERATIONS AMOUNTS.—In fiscal 
years 2016 and 2017, the adjustments under section 251(b)(2)(A) 
of the Balanced Budget and Emergency Deficit Control Act of 1985 
(2 U.S.C. 901(b)(2)(A)) for Overseas Contingency Operations/Global 
War on Terrorism appropriations will be as follows: 
(1) For budget function 150— 
(A) for fiscal year 2016, $14,895,000,000; and 
(B) for fiscal year 2017, $14,895,000,000. 
(2) For budget function 050— 
(A) for fiscal year 2016, $58,798,000,000; and 
(B) for fiscal year 2017, $58,798,000,000. 
This subsection shall not affect the applicability of section 
251(b)(2)(A) of the Balanced Budget and Emergency Deficit Control 
Act of 1985. 
SEC. 102. AUTHORITY FOR FISCAL YEAR 2017 BUDGET RESOLUTION 
IN THE SENATE. 
(a) FISCAL YEAR 2017.—For the purpose of enforcing the 
Congressional Budget Act of 1974, after April 15, 2016, and 
enforcing budgetary points of order in prior concurrent resolutions 
on the budget, the allocations, aggregates, and levels provided for 
in subsection (b) shall apply in the Senate in the same manner 
as for a concurrent resolution on the budget for fiscal year 2017 
with appropriate budgetary levels for fiscal years 2018 through 
2026. 
Applicability. 
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129 STAT. 587 
PUBLIC LAW 114–74—NOV. 2, 2015 
(b) COMMITTEE ALLOCATIONS, AGGREGATES, AND LEVELS.—After 
April 15, 2016, but not later than May 15, 2016, the Chairman 
of the Committee on the Budget of the Senate shall file— 
(1) for the Committee on Appropriations, committee alloca-
tions for fiscal year 2017 consistent with discretionary spending 
limits set forth in section 251(c)(4) of the Balanced Budget 
and Emergency Deficit Control Act of 1985, as amended by 
this Act, for the purpose of enforcing section 302 of the Congres-
sional Budget Act of 1974; 
(2) for all committees other than the Committee on Appro-
priations, committee allocations for fiscal years 2017, 2017 
through 2021, and 2017 through 2026 consistent with the most 
recent baseline of the Congressional Budget Office, as adjusted 
for the budgetary effects of any provision of law enacted during 
the period beginning on the date such baseline is issued and 
ending on the date of submission of such statement, for the 
purpose of enforcing section 302 of the Congressional Budget 
Act of 1974; 
(3) aggregate spending levels for fiscal year 2017 in accord-
ance with the allocations established under paragraphs (1) 
and (2), for the purpose of enforcing section 311 of the Congres-
sional Budget Act of 1974; 
(4) aggregate revenue levels for fiscal years 2017, 2017 
through 2021, and 2017 through 2026 consistent with the most 
recent baseline of the Congressional Budget Office, as adjusted 
for the budgetary effects of any provision of law enacted during 
the period beginning on the date such baseline is issued and 
ending on the date of submission of such statement, for the 
purpose of enforcing section 311 of the Congressional Budget 
Act of 1974; and 
(5) levels of Social Security revenues and outlays for fiscal 
years 2017, 2017 through 2021, and 2017 through 2026 con-
sistent with the most recent baseline of the Congressional 
Budget Office, as adjusted for the budgetary effects of any 
provision of law enacted during the period beginning on the 
date such baseline is issued and ending on the date of submis-
sion of such statement, for the purpose of enforcing sections 
302 and 311 of the Congressional Budget Act of 1974. 
(c) ADDITIONAL MATTER.—The filing referred to in subsection 
(b) may also include for fiscal year 2017 the matter contained 
in subtitles A and B of title IV of S. Con. Res. 11 (114th Congress) 
updated by 1 fiscal year. 
(d) EXPIRATION.—This section shall expire if a concurrent reso-
lution on the budget for fiscal year 2017 is agreed to by the Senate 
and the House of Representatives pursuant to section 301 of the 
Congressional Budget Act of 1974. 
TITLE II—AGRICULTURE 
SEC. 201. STANDARD REINSURANCE AGREEMENT. 
Section 508(k)(8) of the Federal Crop Insurance Act (7 U.S.C. 
1508(k)(8)) is amended— 
(1) in subparagraph (A), in the matter preceding clause 
(i), by striking ‘‘may renegotiate’’ and all that follows through 
Deadlines. 
Time period. 
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129 STAT. 588 
PUBLIC LAW 114–74—NOV. 2, 2015 
the end of clause (ii) and inserting the following: ‘‘shall renego-
tiate the financial terms and conditions of each Standard 
Reinsurance Agreement— 
‘‘(i) not later than December 31, 2016; and 
‘‘(ii) not less than once during each period of 5 
reinsurance years thereafter.’’; and 
(2) by striking subparagraph (E) and inserting the fol-
lowing: 
‘‘(E) CAP
ON
OVERALL
RATE
OF
RETURN.—Notwith-
standing subparagraph (F), the Board shall ensure that 
the Standard Reinsurance Agreement renegotiated under 
subparagraph (A)(i) establishes a target rate of return for 
the approved insurance providers, taken as a whole, that 
does not exceed 8.9 percent of retained premium for each 
of the 2017 through 2026 reinsurance years.’’. 
TITLE III—COMMERCE 
SEC. 301. DEBT COLLECTION IMPROVEMENTS. 
(a) IN GENERAL.—Section 227(b) of the Communications Act 
of 1934 (47 U.S.C. 227(b)) is amended— 
(1) in paragraph (1)— 
(A) in subparagraph (A)(iii), by inserting ‘‘, unless such 
call is made solely to collect a debt owed to or guaranteed 
by the United States’’ after ‘‘charged for the call’’; and 
(B) in subparagraph (B), by inserting ‘‘, is made solely 
pursuant to the collection of a debt owed to or guaranteed 
by the United States,’’ after ‘‘purposes’’; and 
(2) in paragraph (2)— 
(A) in subparagraph (F), by striking ‘‘and’’ at the end; 
(B) in subparagraph (G), by striking the period at 
the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(H) may restrict or limit the number and duration 
of calls made to a telephone number assigned to a cellular 
telephone service to collect a debt owed to or guaranteed 
by the United States.’’. 
(b) DEADLINE
FOR REGULATIONS.—Not later than 9 months 
after the date of enactment of this Act, the Federal Communications 
Commission, in consultation with the Department of the Treasury, 
shall prescribe regulations to implement the amendments made 
by this section. 
TITLE IV—STRATEGIC PETROLEUM 
RESERVE 
SEC. 401. STRATEGIC PETROLEUM RESERVE TEST DRAWDOWN AND 
SALE NOTIFICATION AND DEFINITION CHANGE. 
(a) NOTICE TO CONGRESS.—Section 161(g) of the Energy Policy 
and Conservation Act (42 U.S.C. 6241(g)) is amended by striking 
paragraph (8) and inserting the following: 
‘‘(8) NOTICE TO CONGRESS.— 
‘‘(A) PRIOR NOTICE.—Not less than 14 days before the 
date on which a test is carried out under this subsection, 
Deadline. 
Consultation. 
47 USC 227 note. 
Deadline. 
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129 STAT. 589 
PUBLIC LAW 114–74—NOV. 2, 2015 
the Secretary shall notify both Houses of Congress of the 
test. 
‘‘(B) EMERGENCY.—The prior notice requirement in 
subparagraph (A) shall not apply if the Secretary deter-
mines that an emergency exists which requires a test to 
be carried out, in which case the Secretary shall notify 
both Houses of Congress of the test as soon as possible. 
‘‘(C) DETAILED DESCRIPTION.— 
‘‘(i) IN GENERAL.—Not later than 180 days after 
the date on which a test is completed under this sub-
section, the Secretary shall submit to both Houses 
of Congress a detailed description of the test. 
‘‘(ii) REPORT.—A detailed description submitted 
under clause (i) may be included as part of a report 
made to the President and Congress under section 
165.’’. 
(b) DEFINITION CHANGE.—Section 3(8)(C)(iii) of the Energy 
Policy and Conservation Act (42 U.S.C. 6202(8)(C)(iii)) is amended 
by striking ‘‘sabotage or an act of God’’ and inserting ‘‘sabotage, 
an act of terrorism, or an act of God’’. 
SEC. 402. STRATEGIC PETROLEUM RESERVE MISSION READINESS 
OPTIMIZATION. 
Not later than 180 days after the date of enactment of this 
Act, the Secretary shall— 
(1) complete a long-range strategic review of the Strategic 
Petroleum Reserve; and 
(2) develop and submit to Congress a proposed action plan, 
including a proposed implementation schedule, that— 
(A) specifies near- and long-term roles of the Strategic 
Petroleum Reserve relative to the energy and economic 
security goals and objectives of the United States; 
(B) describes whether existing legal authorities that 
govern the policies, configuration, and capabilities of the 
Strategic Petroleum Reserve are adequate to ensure that 
the Strategic Petroleum Reserve can meet the current and 
future energy and economic security goals and objectives 
of the United States; 
(C) identifies the configuration and performance 
capabilities of the Strategic Petroleum Reserve and rec-
ommends an action plan to achieve the optimal— 
(i) capacity, location, and composition of petroleum 
products in the Strategic Petroleum Reserve; and 
(ii) storage and distributional capabilities; and 
(D) estimates the resources required to attain and 
maintain the long-term sustainability and operational 
effectiveness of the Strategic Petroleum Reserve. 
SEC. 403. STRATEGIC PETROLEUM RESERVE DRAWDOWN AND SALE. 
(a) DRAWDOWN AND SALE.—Notwithstanding section 161 of the 
Energy Policy and Conservation Act (42 U.S.C. 6241), except as 
provided in subsection (b), the Secretary of Energy shall draw 
down and sell— 
(1) 5,000,000 barrels of crude oil from the Strategic Petro-
leum Reserve during fiscal year 2018; 
(2) 5,000,000 barrels of crude oil from the Strategic Petro-
leum Reserve during fiscal year 2019; 
42 USC 6241. 
Deadline. 
Review. 
Plans. 
Proposed 
schedule. 
Deadline. 
Determination. 
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129 STAT. 590 
PUBLIC LAW 114–74—NOV. 2, 2015 
(3) 5,000,000 barrels of crude oil from the Strategic Petro-
leum Reserve during fiscal year 2020; 
(4) 5,000,000 barrels of crude oil from the Strategic Petro-
leum Reserve during fiscal year 2021; 
(5) 8,000,000 barrels of crude oil from the Strategic Petro-
leum Reserve during fiscal year 2022; 
(6) 10,000,000 barrels of crude oil from the Strategic Petro-
leum Reserve during fiscal year 2023; 
(7) 10,000,000 barrels of crude oil from the Strategic Petro-
leum Reserve during fiscal year 2024; and 
(8) 10,000,000 barrels of crude oil from the Strategic Petro-
leum Reserve during fiscal year 2025. 
(b) EMERGENCY PROTECTION.—The Secretary shall not draw 
down and sell crude oil under this section in amounts that would 
limit the authority to sell petroleum products under section 161(h) 
of the Energy Policy and Conservation Act (42 U.S.C. 6241(h)) 
in the full amount authorized by that subsection. 
(c) PROCEEDS.—Proceeds from a sale under this section shall 
be deposited into the general fund of the Treasury during the 
fiscal year in which the sale occurs. 
SEC. 404. ENERGY SECURITY AND INFRASTRUCTURE MODERNIZATION 
FUND. 
(a) ESTABLISHMENT.—There is hereby established in the 
Treasury of the United States a fund to be known as the Energy 
Security and Infrastructure Modernization Fund (referred to in 
this section as the ‘‘Fund’’), consisting of— 
(1) collections deposited in the Fund under subsection (c); 
and 
(2) amounts otherwise appropriated to the Fund. 
(b) PURPOSE.—The purpose of the Fund is to provide for the 
construction, maintenance, repair, and replacement of Strategic 
Petroleum Reserve facilities. 
(c) COLLECTION AND DEPOSIT OF SALE PROCEEDS IN FUND.— 
(1) DRAWDOWN AND SALE.—Notwithstanding section 161 
of the Energy Policy and Conservation Act (42 U.S.C. 6241), 
to the extent provided in advance in appropriation Acts, the 
Secretary of Energy shall draw down and sell crude oil from 
the Strategic Petroleum Reserve in amounts as authorized 
under subsection (e), except as provided in paragraph (2). 
Amounts received for a sale under this paragraph shall be 
deposited into the Fund during the fiscal year in which the 
sale occurs. Such amounts shall remain available in the Fund 
without fiscal year limitation. 
(2) EMERGENCY PROTECTION.—The Secretary shall not draw 
down and sell crude oil under this subsection in amounts that 
would limit the authority to sell petroleum products under 
section 161(h) of the Energy Policy and Conservation Act (42 
U.S.C. 6241(h)) in the full amount authorized by that sub-
section. 
(d) AUTHORIZED USES OF FUND.— 
(1) IN GENERAL.—Amounts in the Fund may be used for, 
or may be credited as offsetting collections for amounts used 
for, carrying out the program described in paragraph (2)(B), 
to the extent provided in advance in appropriation Acts. 
(2) PROGRAM
TO
MODERNIZE
THE
STRATEGIC
PETROLEUM 
RESERVE.— 
42 USC 6239 
note. 
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129 STAT. 591 
PUBLIC LAW 114–74—NOV. 2, 2015 
(A) FINDINGS.—Congress finds the following: 
(i) The Strategic Petroleum Reserve is one of the 
Nation’s most valuable energy security assets. 
(ii) The age and condition of the Strategic Petro-
leum Reserve have diminished its value as a Federal 
energy security asset. 
(iii) Global oil markets and the location and 
amount of United States oil production and refining 
capacity have dramatically changed in the 40 years 
since the establishment of the Strategic Petroleum 
Reserve. 
(iv) Maximizing the energy security value of the 
Strategic Petroleum Reserve requires a modernized 
infrastructure that meets the drawdown and distribu-
tion needs of changed domestic and international oil 
and refining market conditions. 
(B) PROGRAM.—The Secretary of Energy shall establish 
a Strategic Petroleum Reserve modernization program to 
protect the United States economy from the impacts of 
emergency product supply disruptions. The program may 
include— 
(i) operational improvements to extend the useful 
life of surface and subsurface infrastructure; 
(ii) maintenance of cavern storage integrity; and 
(iii) addition of infrastructure and facilities to opti-
mize the drawdown and incremental distribution 
capacity of the Strategic Petroleum Reserve. 
(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated (and drawdowns and sales under subsection 
(c) in an equal amount are authorized) for carrying out subsection 
(d)(2)(B), $2,000,000,000 for the period encompassing fiscal years 
2017 through 2020. 
(f) TRANSMISSION
OF DEPARTMENT BUDGET REQUESTS.—The 
Secretary of Energy shall prepare and submit in the Department’s 
annual budget request to Congress— 
(1) an itemization of the amounts of funds necessary to 
carry out subsection (d); and 
(2) a designation of any activities thereunder for which 
a multiyear budget authority would be appropriate. 
(g) SUNSET.—The authority of the Secretary to draw down 
and sell crude oil from the Strategic Petroleum Reserve under 
this section shall expire at the end of fiscal year 2020. 
TITLE V—PENSIONS 
SEC. 501. SINGLE EMPLOYER PLAN ANNUAL PREMIUM RATES. 
(a) FLAT-RATE PREMIUM.— 
(1) IN GENERAL.—Section 4006(a)(3)(A)(i) of the Employee 
Retirement 
Income 
Security 
Act 
of 
1974 
(29 
U.S.C. 
1306(a)(3)(A)(i)) is amended by striking ‘‘and’’ at the end of 
subclause (IV), by striking the period at the end of subclause 
(V) and inserting a semicolon, and by inserting after subclause 
(V) the following: 
‘‘(VI) for plan years beginning after December 
31, 2016, and before January 1, 2018, $69; 
Time periods. 
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129 STAT. 592 
PUBLIC LAW 114–74—NOV. 2, 2015 
‘‘(VII) for plan years beginning after December 
31, 2017, and before January 1, 2019, $74; and 
‘‘(VIII) 
for 
plan 
years 
beginning 
after 
December 31, 2018, $80.’’. 
(2) PREMIUM RATES AFTER 2019.—Section 4006(a)(3)(G) of 
such Act (29 U.S.C. 1306(a)(3)(G)) is amended— 
(A) in the matter preceding clause (i), by striking 
‘‘2016’’ and inserting ‘‘2019’’; and 
(B) in clause (i)(II) by striking ‘‘2014’’ and inserting 
‘‘2017’’. 
(b) VARIABLE-RATE PREMIUM INCREASES.— 
(1) IN
GENERAL.—Section 4006(a)(8)(C) of such Act (29 
U.S.C. 1306(a)(8)(C)) is amended— 
(A) in the subparagraph heading, by striking ‘‘increase 
in 2014 and 2015’’ and inserting ‘‘increases’’; 
(B) in clause (ii), by striking ‘‘and’’ at the end; 
(C) in clause (iii), by striking the period at the end 
and inserting a semicolon; and 
(D) by adding at the end the following: 
‘‘(iv) in the case of plan years beginning in calendar 
year 2017, by $3; 
‘‘(v) in the case of plan years beginning in calendar 
year 2018, by $4; and 
‘‘(vi) in the case of plan years beginning in calendar 
year 2019, by $4.’’. 
(2) CONFORMING AMENDMENTS.—Section 4006(a)(8) of such 
Act (29 U.S.C. 1306(a)(8)) is amended— 
(A) in subparagraph (A)— 
(i) in clause (iii), by striking ‘‘and’’ at the end; 
(ii) in clause (iv), by striking the period at the 
end and inserting a semicolon; and 
(iii) by adding at the end the following: 
‘‘(v) for plan years beginning after calendar year 
2017, the amount in effect for plan years beginning 
in 2017 (determined after application of subparagraph 
(C)); 
‘‘(vi) for plan years beginning after calendar year 
2018, the amount in effect for plan years beginning 
in 2018 (determined after application of subparagraph 
(C)); and 
‘‘(vii) for plan years beginning after calendar year 
2019, the amount in effect for plan years beginning 
in 2019 (determined after application of subparagraph 
(C)).’’; and 
(B) in subparagraph (D)— 
(i) in clause (iii), by striking ‘‘and’’ at the end; 
(ii) in clause (iv), by striking the period at the 
end and inserting a semicolon; and 
(iii) by adding at the end the following: 
‘‘(v) 2015, in the case of plan years beginning after 
calendar year 2017; 
‘‘(vi) 2016, in the case of plan years beginning 
after calendar year 2018; and 
‘‘(vii) 2017, in the case of plan years beginning 
after calendar year 2019.’’. 
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129 STAT. 593 
PUBLIC LAW 114–74—NOV. 2, 2015 
(3) EFFECTIVE DATE.—The amendments made by this sec-
tion shall apply to plan years beginning after December 31, 
2016. 
SEC. 502. PENSION PAYMENT ACCELERATION. 
Notwithstanding section 4007(a) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1307(a)) and section 4007.11 
of title 29, Code of Federal Regulations, for plan years commencing 
after December 31, 2024, and before January 1, 2026, the premium 
due date for such plan years shall be the fifteenth day of the 
ninth calendar month that begins on or after the first day of 
the premium payment year. 
SEC. 503. MORTALITY TABLES. 
(a) CREDIBILITY.—For purposes of subclause (I) of section 
430(h)(3)(C)(iii) of the Internal Revenue Code of 1986 and subclause 
(I) of section 303(h)(3)(C)(iii) of the Employee Retirement Income 
Security Act of 1974, the determination of whether plans have 
credible information shall be made in accordance with established 
actuarial credibility theory, which— 
(1) is materially different from rules under such section 
of such Code, including Revenue Procedure 2007–37, that are 
in effect on the date of the enactment of this Act; and 
(2) permits the use of tables that reflect adjustments to 
the tables described in subparagraphs (A) and (B) of section 
430(h)(3) of such Code, and subparagraphs (A) and (B) of section 
303(h)(3) of such Act, if such adjustments are based on the 
experience described in subclause (II) of section 430(h)(3)(C)(iii) 
of such Code and in subclause (II) of section 303(h)(3)(C)(iii) 
of such Act. 
(b) EFFECTIVE DATE.—This section shall apply to plan years 
beginning after December 31, 2015. 
SEC. 
504. 
EXTENSION 
OF 
CURRENT 
FUNDING 
STABILIZATION 
PERCENTAGES TO 2018, 2019, AND 2020. 
(a) FUNDING STABILIZATION UNDER
THE INTERNAL REVENUE 
CODE
OF
1986.—The 
table 
in 
subclause 
(II) 
of 
section 
430(h)(2)(C)(iv) of the Internal Revenue Code of 1986 is amended 
to read as follows: 
‘‘If the calendar year 
is: 
The applicable min-
imum percentage is: 
The applicable max-
imum percentage is: 
2012, 2013, 2014, 
2015, 2016, 2017, 
2018, 2019, or 
2020.
90% ...........................
110% 
2021 ..........................
85% ...........................
115% 
2022 ..........................
80% ...........................
120% 
2023 ..........................
75% ...........................
125% 
After 2023 ................
70% ...........................
130%’’. 
(b) FUNDING STABILIZATION UNDER EMPLOYEE RETIREMENT 
INCOME SECURITY ACT OF 1974.— 
(1) IN
GENERAL.—The table in subclause (II) of section 
303(h)(2)(C)(iv) of the Employee Retirement Income Security 
26 USC 430. 
Determination. 
26 USC 430 note. 
Time periods. 
29 USC 1307 
note. 
29 USC 1306 
note. 
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129 STAT. 594 
PUBLIC LAW 114–74—NOV. 2, 2015 
Act of 1974 (29 U.S.C. 1083(h)(2)(C)(iv)) is amended to read 
as follows: 
‘‘If the calendar year 
is: 
The applicable min-
imum percentage is: 
The applicable max-
imum percentage is: 
2012, 2013, 2014, 
2015, 2016, 2017, 
2018, 2019, or 
2020.
90% ...........................
110% 
2021 ..........................
85% ...........................
115% 
2022 ..........................
80% ...........................
120% 
2023 ..........................
75% ...........................
125% 
After 2023 ................
70% ...........................
130%’’. 
(2) CONFORMING AMENDMENTS.— 
(A) IN GENERAL.—Section 101(f)(2)(D) of such Act (29 
U.S.C. 1021(f)(2)(D)) is amended— 
(i) in clause (i) by striking ‘‘and the Highway and 
Transportation Funding Act of 2014’’ both places it 
appears and inserting ‘‘, the Highway and Transpor-
tation Funding Act of 2014, and the Bipartisan Budget 
Act of 2015’’; and 
(ii) in clause (ii) by striking ‘‘2020’’ and inserting 
‘‘2023’’. 
(B) STATEMENTS.—The Secretary of Labor shall modify 
the statements required under subclauses (I) and (II) of 
section 101(f)(2)(D)(i) of such Act to conform to the amend-
ments made by this section. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply with respect to plan years beginning after December 
31, 2015. 
TITLE VI—HEALTH CARE 
SEC. 601. MAINTAINING 2016 MEDICARE PART B PREMIUM AND 
DEDUCTIBLE LEVELS CONSISTENT WITH ACTUARIALLY 
FAIR RATES. 
(a) 2016 PREMIUM AND DEDUCTIBLE AND REPAYMENT THROUGH 
FUTURE PREMIUMS.—Section 1839(a) of the Social Security Act (42 
U.S.C. 1395r(a)) is amended— 
(1) in the second sentence of paragraph (1), by striking 
‘‘Such’’ and inserting ‘‘Subject to paragraphs (5) and (6), such’’; 
and 
(2) by adding at the end the following: 
‘‘(5)(A) In applying this part (including subsection (i) and section 
1833(b)), the monthly actuarial rate for enrollees age 65 and over 
for 2016 shall be determined as if subsection (f) did not apply. 
‘‘(B) Subsection (f) shall continue to be applied to paragraph 
(6)(A) (during a repayment month, as described in paragraph (6)(B)) 
and without regard to the application of subparagraph (A). 
‘‘(6)(A) With respect to a repayment month (as described in 
subparagraph (B)), the monthly premium otherwise established 
under paragraph (3) shall be increased by, subject to subparagraph 
(D), $3. 
Applicability. 
26 USC 430 note. 
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129 STAT. 595 
PUBLIC LAW 114–74—NOV. 2, 2015 
‘‘(B) For purposes of this paragraph, a repayment month is 
a month during a year, beginning with 2016, for which a balance 
due amount is computed under subparagraph (C) as greater than 
zero. 
‘‘(C) For purposes of this paragraph, the balance due amount 
computed under this subparagraph, with respect to a month, is 
the amount estimated by the Chief Actuary of the Centers for 
Medicare & Medicaid Services to be equal to— 
‘‘(i) the amount transferred under section 1844(d)(1); plus 
‘‘(ii) the amount that is equal to the aggregate reduction, 
for all individuals enrolled under this part, in the income 
related monthly adjustment amount as a result of the applica-
tion of paragraph (5); minus 
‘‘(iii) the amounts payable under this part as a result 
of the application of this paragraph for preceding months. 
‘‘(D) If the balance due amount computed under subparagraph 
(C), without regard to this subparagraph, for December of a year 
would be less than zero, the Chief Actuary of the Centers for 
Medicare & Medicaid Services shall estimate, and the Secretary 
shall apply, a reduction to the dollar amount increase applied 
under subparagraph (A) for each month during such year in a 
manner such that the balance due amount for January of the 
subsequent year is equal to zero.’’. 
(b) TRANSITIONAL GOVERNMENT CONTRIBUTION.—Section 1844 
of the Social Security Act (42 U.S.C. 1395w) is amended— 
(1) in subsection (a), by adding at the end the following: 
‘‘In applying paragraph (1), the amounts transferred under sub-
section (d)(1) with respect to enrollees described in subparagraphs 
(A) and (B) of such subsection shall be treated as premiums payable 
and deposited in the Trust Fund under subparagraphs (A) and 
(B), respectively, of paragraph (1).’’; and 
(2) by adding at the end the following: 
‘‘(d)(1) For 2016, there shall be transferred from the General 
Fund to the Trust Fund an amount, as estimated by the Chief 
Actuary of the Centers for Medicare & Medicaid Services, equal 
to the reduction in aggregate premiums payable under this part 
for a month in such year (excluding any changes in amounts col-
lected under section 1839(i)) that is attributable to the application 
of section 1839(a)(5)(A) with respect to— 
‘‘(A) enrollees age 65 and over; and 
‘‘(B) enrollees under age 65. 
Such amounts shall be transferred from time to time as appropriate. 
‘‘(2) Premium increases affected under section 1839(a)(6) shall 
not be taken into account in applying subsection (a). 
‘‘(3) There shall be transferred from the Trust Fund to the 
General Fund of the Treasury amounts equivalent to the additional 
premiums payable as a result of the application of section 1839(a)(6), 
excluding the aggregate payments attributable to the application 
of section 1839(i)(3)(A)(ii)(II).’’. 
(c) CONFORMING APPLICATION OF HIGH INCOME ADJUSTMENTS 
TO INCREASED MONTHLY PREMIUM IN SAME MANNER AS FOR REG-
ULAR MEDICARE PREMIUMS.—Section 1839(i)(3)(A)(ii) of the Social 
Security Act (42 U.S.C. 1395r(i)(3)(A)(ii)) is amended— 
(1) by striking ‘‘AMOUNT.—200 percent’’ and inserting the 
following: ‘‘AMOUNT.— 
‘‘(I) 200 percent’’; and 
Applicability. 
Estimate. 
Applicability. 
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129 STAT. 596 
PUBLIC LAW 114–74—NOV. 2, 2015 
(2) by striking the period at the end and inserting ‘‘; plus’’; 
and 
(3) by adding at the end the following new subclause: 
‘‘(II) 4 times the amount of the increase in 
the monthly premium under subsection (a)(6) for 
a month in the year.’’. 
(d) CONDITIONAL APPLICATION TO 2017 IF NO SOCIAL SECURITY 
COLA FOR 2017.—If there is no increase in the monthly insurance 
benefits payable under title II with respect to December 2016 pursu-
ant to section 215(i), then the amendments made by this section 
shall be applied as if— 
(1) the reference to ‘‘2016’’ in paragraph (5)(A) of section 
1839(a) of the Social Security Act (42 U.S.C. 1395r(a)), as 
added by subsection (a)(2), was a reference to ‘‘2016 and 2017’’; 
(2) the reference to ‘‘a month during a year, beginning 
with 2016’’ in paragraph (6)(B) of section 1839 of such Act 
(42 U.S.C. 1395r(a)), as added by subsection (a)(2), was a ref-
erence to ‘‘a month in a year, beginning with 2016 and begin-
ning with 2017, respectively’’; and 
(3) the reference to ‘‘2016’’ in subsection (d)(1) of section 
1844 of such Act (42 U.S.C. 1395w), as added by subsection 
(b)(2), was a reference to ‘‘each of 2016 and 2017’’. 
Any increase in premiums effected under this subsection shall be 
in addition to the increase effected by the amendments made by 
subsection (a). 
(e) CONSTRUCTION REGARDING NO AUTHORITY
TO INITIATE 
APPLICATION
TO YEARS AFTER 2017.—Nothing in subsection (d) 
or the amendments made by this section shall be construed as 
authorizing the Secretary of Health and Human Services to initiate 
application of such subsection or amendments for a year after 
2017. 
SEC. 602. APPLYING THE MEDICAID ADDITIONAL REBATE REQUIRE-
MENT TO GENERIC DRUGS. 
(a) IN GENERAL.—Section 1927(c)(3) of the Social Security Act 
(42 U.S.C. 1396r–8(c)(3)) is amended— 
(1) in subparagraph (A), by striking ‘‘The amount’’ and 
inserting ‘‘Except as provided in subparagraph (C), the 
amount’’; and 
(2) by adding at the end the following new subparagraph: 
‘‘(C) ADDITIONAL REBATE.— 
‘‘(i) IN GENERAL.—The amount of the rebate speci-
fied in this paragraph for a rebate period, with respect 
to each dosage form and strength of a covered out-
patient drug other than a single source drug or an 
innovator multiple source drug of a manufacturer, shall 
be increased in the manner that the rebate for a dosage 
form and strength of a single source drug or an inno-
vator multiple source drug is increased under subpara-
graphs (A) and (D) of paragraph (2), except as provided 
in clause (ii). 
‘‘(ii) SPECIAL
RULES
FOR
APPLICATION
OF
PROVI-
SION.—In applying subparagraphs (A) and (D) of para-
graph (2) under clause (i)— 
‘‘(I) the reference in subparagraph (A)(i) of 
such paragraph to ‘1990’ shall be deemed a ref-
erence to ‘2014’; 
42 USC 1395r 
note. 
42 USC 1395r 
note. 
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129 STAT. 597 
PUBLIC LAW 114–74—NOV. 2, 2015 
‘‘(II) subject to clause (iii), the reference in 
subparagraph (A)(ii) of such paragraph to ‘the cal-
endar quarter beginning July 1, 1990’ shall be 
deemed a reference to ‘the calendar quarter begin-
ning July 1, 2014’; and 
‘‘(III) subject to clause (iii), the reference in 
subparagraph (A)(ii) of such paragraph to ‘Sep-
tember 1990’ shall be deemed a reference to ‘Sep-
tember 2014’; 
‘‘(IV) the references in subparagraph (D) of 
such paragraph to ‘paragraph (1)(A)(ii)’, ‘this para-
graph’, and ‘December 31, 2009’ shall be deemed 
references to ‘subparagraph (A)’, ‘this subpara-
graph’, and ‘December 31, 2014’, respectively; and 
‘‘(V) any reference in such paragraph to a 
‘single source drug or an innovator multiple source 
drug’ shall be deemed to be a reference to a drug 
to which clause (i) applies. 
‘‘(iii) SPECIAL RULE FOR CERTAIN NONINNOVATOR 
MULTIPLE
SOURCE
DRUGS.—In applying paragraph 
(2)(A)(ii)(II) under clause (i) with respect to a covered 
outpatient drug that is first marketed as a drug other 
than a single source drug or an innovator multiple 
source drug after April 1, 2013, such paragraph shall 
be applied— 
‘‘(I) by substituting ‘the applicable quarter’ for 
‘the calendar quarter beginning July 1, 1990’; and 
‘‘(II) by substituting ‘the last month in such 
applicable quarter’ for ‘September 1990’. 
‘‘(iv) APPLICABLE QUARTER DEFINED.—In this sub-
section, the term ‘applicable quarter’ means, with 
respect to a drug described in clause (iii), the fifth 
full calendar quarter after which the drug is marketed 
as a drug other than a single source drug or an inno-
vator multiple source drug.’’. 
(b) EFFECTIVE DATE.—The amendments made by subsection 
(a) shall apply to rebate periods beginning after the date that 
is one year after the date of the enactment of this Act. 
SEC. 603. TREATMENT OF OFF-CAMPUS OUTPATIENT DEPARTMENTS 
OF A PROVIDER. 
Section 1833(t) of the Social Security Act (42 U.S.C. 1395l(t)) 
is amended— 
(1) in paragraph (1)(B)— 
(A) in clause (iii), by striking ‘‘but’’ at the end; 
(B) in clause (iv), by striking the period at the end 
and inserting ‘‘; and’’; and 
(C) by adding at the end the following new clause: 
‘‘(v) does not include applicable items and services 
(as defined in subparagraph (A) of paragraph (21)) 
that are furnished on or after January 1, 2017, by 
an off-campus outpatient department of a provider (as 
defined in subparagraph (B) of such paragraph).’’; and 
(2) by adding at the end the following new paragraph: 
‘‘(21) SERVICES FURNISHED BY AN OFF-CAMPUS OUTPATIENT 
DEPARTMENT OF A PROVIDER.— 
Applicability. 
Time period. 
42 USC 1396r–8. 
Applicability. 
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129 STAT. 598 
PUBLIC LAW 114–74—NOV. 2, 2015 
‘‘(A) APPLICABLE ITEMS AND SERVICES.—For purposes 
of paragraph (1)(B)(v) and this paragraph, the term 
‘applicable items and services’ means items and services 
other than items and services furnished by a dedicated 
emergency department (as defined in section 489.24(b) of 
title 42 of the Code of Federal Regulations). 
‘‘(B) OFF-CAMPUS OUTPATIENT DEPARTMENT OF A PRO-
VIDER.— 
‘‘(i) IN
GENERAL.—For purposes of paragraph 
(1)(B)(v) and this paragraph, subject to clause (ii), the 
term ‘off-campus outpatient department of a provider’ 
means a department of a provider (as defined in section 
413.65(a)(2) of title 42 of the Code of Federal Regula-
tions, as in effect as of the date of the enactment 
of this paragraph) that is not located— 
‘‘(I) on the campus (as defined in such section 
413.65(a)(2)) of such provider; or 
‘‘(II) within the distance (described in such 
definition of campus) from a remote location of 
a hospital facility (as defined in such section 
413.65(a)(2)). 
‘‘(ii) EXCEPTION.—For purposes of paragraph 
(1)(B)(v) and this paragraph, the term ‘off-campus out-
patient department of a provider’ shall not include 
a department of a provider (as so defined) that was 
billing under this subsection with respect to covered 
OPD services furnished prior to the date of the enact-
ment of this paragraph. 
‘‘(C) AVAILABILITY OF PAYMENT UNDER OTHER PAYMENT 
SYSTEMS.—Payments for applicable items and services fur-
nished by an off-campus outpatient department of a pro-
vider that are described in paragraph (1)(B)(v) shall be 
made under the applicable payment system under this 
part (other than under this subsection) if the requirements 
for such payment are otherwise met. 
‘‘(D) INFORMATION
NEEDED
FOR
IMPLEMENTATION.— 
Each hospital shall provide to the Secretary such informa-
tion as the Secretary determines appropriate to implement 
this paragraph and paragraph (1)(B)(v) (which may include 
reporting of information on a hospital claim using a code 
or modifier and reporting information about off-campus 
outpatient departments of a provider on the enrollment 
form described in section 1866(j)). 
‘‘(E) LIMITATIONS.—There shall be no administrative 
or judicial review under section 1869, section 1878, or 
otherwise of the following: 
‘‘(i) The determination of the applicable items and 
services under subparagraph (A) and applicable pay-
ment systems under subparagraph (C). 
‘‘(ii) The determination of whether a department 
of a provider meets the term described in subparagraph 
(B). 
‘‘(iii) Any information that hospitals are required 
to report pursuant to subparagraph (D).’’. 
Definition. 
Definition. 
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129 STAT. 599 
PUBLIC LAW 114–74—NOV. 2, 2015 
SEC. 604. REPEAL OF AUTOMATIC ENROLLMENT REQUIREMENT. 
The Fair Labor Standards Act of 1938 (29 U.S.C. 201 et seq.) 
is amended by repealing section 18A (as added by section 1511 
of the Patient Protection and Affordable Care Act (Public Law 
111–148)). 
TITLE VII—JUDICIARY 
SEC. 701. CIVIL MONETARY PENALTY INFLATION ADJUSTMENTS. 
(a) SHORT TITLE.—This section may be cited as the ‘‘Federal 
Civil Penalties Inflation Adjustment Act Improvements Act of 2015’’. 
(b) AMENDMENTS.—The Federal Civil Penalties Inflation Adjust-
ment Act of 1990 (28 U.S.C. 2461 note) is amended— 
(1) in section 4— 
(A) by striking the matter preceding paragraph (1) 
and inserting the following: 
‘‘(a) IN GENERAL.—Not later than July 1, 2016, and not later 
than January 15 of every year thereafter, and subject to subsections 
(c) 
and 
(d), 
the 
head 
of 
each 
agency 
shall—’’; 
(B) in paragraph (1)— 
(i) by striking ‘‘by regulation adjust’’ and inserting 
‘‘in accordance with subsection (b), adjust’’; and 
(ii) by striking ‘‘, the Tariff Act of 1930, the Occupa-
tional Safety and Health Act of 1970, or the Social 
Security Act’’ and inserting ‘‘ or the Tariff Act of 1930’’; 
(C) in paragraph (2), by striking ‘‘such regulation’’ and 
inserting ‘‘such adjustment’’; and 
(D) by adding at the end the following: 
‘‘(b) PROCEDURES FOR ADJUSTMENTS.— 
‘‘(1) CATCH UP ADJUSTMENT.—For the first adjustment made 
under subsection (a) after the date of enactment of the Federal 
Civil Penalties Inflation Adjustment Act Improvements Act of 
2015— 
‘‘(A) the head of an agency shall adjust civil monetary 
penalties through an interim final rulemaking; and 
‘‘(B) the adjustment shall take effect not later than 
August 1, 2016. 
‘‘(2) SUBSEQUENT
ADJUSTMENTS.—For the second adjust-
ment made under subsection (a) after the date of enactment 
of the Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015, and each adjustment thereafter, 
the head of an agency shall adjust civil monetary penalties 
and shall make the adjustment notwithstanding section 553 
of title 5, United States Code. 
‘‘(c) EXCEPTION.—For the first adjustment made under sub-
section (a) after the date of enactment of the Federal Civil Penalties 
Inflation Adjustment Act Improvements Act of 2015, the head of 
an agency may adjust the amount of a civil monetary penalty 
by less than the otherwise required amount if— 
‘‘(1) the head of the agency, after publishing a notice of 
proposed rulemaking and providing an opportunity for com-
ment, determines in a final rule that— 
‘‘(A) increasing the civil monetary penalty by the other-
wise required amount will have a negative economic 
impact; or 
Publication. 
Notice. 
Public comments. 
Determination. 
Regulations. 
Effective date. 
Deadline. 
Regulations. 
Deadlines. 
Federal Civil 
Penalties 
Inflation 
Adjustment Act 
Improvements 
Act of 2015. 
28 USC 1 note. 
28 USC 2461 
note. 
29 USC 218a. 
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129 STAT. 600 
PUBLIC LAW 114–74—NOV. 2, 2015 
‘‘(B) the social costs of increasing the civil monetary 
penalty by the otherwise required amount outweigh the 
benefits; and 
‘‘(2) the Director of the Office of Management and Budget 
concurs with the determination of the head of the agency under 
paragraph (1). 
‘‘(d) OTHER ADJUSTMENTS MADE.—If a civil monetary penalty 
subject to a cost-of-living adjustment under this Act is, during 
the 12 months preceding a required cost-of-living adjustment, 
increased by an amount greater than the amount of the adjustment 
required under subsection (a), the head of the agency is not required 
to make the cost-of-living adjustment for that civil monetary penalty 
in that year.’’; 
(2) in section 5— 
(A) in subsection (a), by striking ‘‘to the nearest— 
’’ and all that follows through the end of subsection (a) 
and inserting ‘‘to the nearest multiple of $1.’’; and 
(B) by amending subsection (b) to read as follows: 
‘‘(b) DEFINITION.— 
‘‘(1) IN GENERAL.—Except as provided in paragraph (2), 
for purposes of subsection (a), the term ‘cost-of-living adjust-
ment’ means the percentage (if any) for each civil monetary 
penalty by which— 
‘‘(A) the Consumer Price Index for the month of October 
preceding the date of the adjustment, exceeds 
‘‘(B) the Consumer Price Index for the month of October 
1 year before the month of October referred to in subpara-
graph (A). 
‘‘(2) INITIAL ADJUSTMENT.— 
‘‘(A) IN
GENERAL.—Subject to subparagraph (C), for 
the first inflation adjustment under section 4 made by 
an agency after the date of enactment of the Federal Civil 
Penalties Inflation Adjustment Act Improvements Act of 
2015, the term ‘cost-of-living adjustment’ means the 
percentage (if any) for each civil monetary penalty by which 
the Consumer Price Index for the month of October, 2015 
exceeds the Consumer Price Index for the month of October 
of the calendar year during which the amount of such 
civil monetary penalty was established or adjusted under 
a provision of law other than this Act. 
‘‘(B) APPLICATION OF ADJUSTMENT.—The cost-of-living 
adjustment described in subparagraph (A) shall be applied 
to the amount of the civil monetary penalty as it was 
most recently established or adjusted under a provision 
of law other than this Act. 
‘‘(C) MAXIMUM
ADJUSTMENT.—The amount of the 
increase in a civil monetary penalty under subparagraph 
(A) shall not exceed 150 percent of the amount of that 
civil monetary penalty on the date of enactment of the 
Federal Civil Penalties Inflation Adjustment Act Improve-
ments Act of 2015.’’; 
(3) in section 6, by striking ‘‘violations which occur’’ and 
inserting ‘‘civil monetary penalties, including those whose asso-
ciated violation predated such increase, which are assessed’’; 
and 
(4) by adding at the end the following: 
28 USC 2461 
note. 
28 USC 2461 
note. 
Time period. 
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129 STAT. 601 
PUBLIC LAW 114–74—NOV. 2, 2015 
‘‘SEC. 7. IMPLEMENTATION AND OVERSIGHT ENHANCEMENTS. 
‘‘(a) OMB GUIDANCE.—Not later than February 29, 2016, not 
later than December 15, 2016, and December 15 of every year 
thereafter, the Director of the Office of Management and Budget 
shall issue guidance to agencies on implementing the inflation 
adjustments required under this Act. 
‘‘(b) AGENCY FINANCIAL REPORTS.—The head of each agency 
shall include in the Agency Financial Report submitted under OMB 
Circular A–136, or any successor thereto, information about the 
civil monetary penalties within the jurisdiction of the agency, 
including the adjustment of the civil monetary penalties by the 
head of the agency under this Act. 
‘‘(c) GAO REVIEW.—The Comptroller General of the United 
States shall annually submit to Congress a report assessing the 
compliance of agencies with the inflation adjustments required 
under this Act, which may be included as part of another report 
submitted to Congress.’’. 
(c) REPEAL.—Section 31001(s) of the Debt Collection Improve-
ment Act of 1996 (28 U.S.C. 2461 note) is amended by striking 
paragraph (2). 
SEC. 702. CRIME VICTIMS FUND. 
There 
is 
hereby 
rescinded 
and 
permanently 
canceled 
$1,500,000,000 of the funds deposited or available in the Crime 
Victims Fund created by section 1402 of the Victims of Crime 
Act of 1984 (42 U.S.C. 10601). 
SEC. 703. ASSETS FORFEITURE FUND. 
Of the amounts deposited in the Department of Justice Assets 
Forfeiture Fund, $746,000,000 are hereby rescinded and perma-
nently cancelled. 
TITLE VIII—SOCIAL SECURITY 
SEC. 801. SHORT TITLE. 
This title may be cited as the ‘‘Social Security Benefit Protection 
and Opportunity Enhancement Act of 2015’’. 
Subtitle A—Ensuring Correct Payments 
and Reducing Fraud 
SEC. 811. EXPANSION OF COOPERATIVE DISABILITY INVESTIGATIONS 
UNITS. 
(a) IN GENERAL.—Not later than October 1, 2022, the Commis-
sioner of Social Security shall take any necessary actions, subject 
to the availability of appropriations, to ensure that cooperative 
disability investigations units have been established, in areas where 
there is cooperation with local law enforcement agencies, that would 
cover each of the 50 States, the District of Columbia, Puerto Rico, 
Guam, the Northern Mariana Islands, the Virgin Islands, and Amer-
ican Samoa. 
(b) REPORT.—Not later than 90 days after the date of the 
enactment of this Act and annually thereafter until the earlier 
of 2022 or the date on which nationwide coverage is achieved, 
the Commissioner of Social Security shall submit to the Committee 
Deadline. 
42 USC 421. 
Social Security 
Benefit 
Protection and 
Opportunity 
Enhancement 
Act of 2015. 
42 USC 1305 
note. 
Rescission. 
Cancellation. 
Rescission. 
Reports. 
28 USC 2461 
note. 
Deadlines. 
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129 STAT. 602 
PUBLIC LAW 114–74—NOV. 2, 2015 
on Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate a report describing a plan 
to implement the nationwide coverage described in subsection (a) 
and outlining areas where the Social Security Administration did 
not receive the cooperation of local law enforcement agencies. 
SEC. 812. EXCLUSION OF CERTAIN MEDICAL SOURCES OF EVIDENCE. 
(a) IN GENERAL.—Section 223(d)(5) of the Social Security Act 
(42 U.S.C. 423(d)(5)) is amended by adding at the end the following: 
‘‘(C)(i) In making any determination with respect to 
whether an individual is under a disability or continues 
to be under a disability, the Commissioner of Social Secu-
rity may not consider (except for good cause as determined 
by the Commissioner) any evidence furnished by— 
‘‘(I) any individual or entity who has been convicted 
of a felony under section 208 or under section 1632; 
‘‘(II) any individual or entity who has been 
excluded from participation in any Federal health care 
program under section 1128; or 
‘‘(III) any person with respect to whom a civil 
money penalty or assessment has been imposed under 
section 1129 for the submission of false evidence. 
‘‘(ii) To the extent and at such times as is necessary 
for the effective implementation of clause (i) of this 
subparagraph— 
‘‘(I) the Inspector General of the Social Security 
Administration shall transmit to the Commissioner 
information relating to persons described in subclause 
(I) or (III) of clause (i); 
‘‘(II) the Secretary of Health and Human Services 
shall transmit to the Commissioner information 
relating to persons described in subclause (II) of clause 
(i); and’’. 
(b) REGULATIONS.—Not later than 1 year after the date of 
the enactment of this Act, the Commissioner of Social Security 
shall issue regulations to carry out the amendment made by sub-
section (a). 
(c) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall apply with respect to determinations of disability made on 
or after the earlier of— 
(1) the effective date of the regulations issued by the 
Commissioner under subsection (b); or 
(2) one year after the date of the enactment of this Act. 
SEC. 813. NEW AND STRONGER PENALTIES. 
(a) CONSPIRACY TO COMMIT SOCIAL SECURITY FRAUD.— 
(1) AMENDMENT TO TITLE II.—Section 208(a) of the Social 
Security Act (42 U.S.C. 408(a)) is amended— 
(A) in paragraph (7)(C), by striking ‘‘or’’ at the end; 
(B) in paragraph (8), by adding ‘‘or’’ at the end; and 
(C) by inserting after paragraph (8) the following: 
‘‘(9) conspires to commit any offense described in any of 
paragraphs (1) through (4),’’. 
(2) AMENDMENT TO TITLE VIII.—Section 811(a) of such Act 
(42 U.S.C. 1011(a)) is amended— 
(A) in paragraph (3), by striking ‘‘or’’ at the end; 
(B) in paragraph (4), by striking the comma and adding 
‘‘; or’’ at the end; and 
Applicability. 
42 USC 423 note. 
Deadline. 
42 USC 423 note. 
Determination. 
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129 STAT. 603 
PUBLIC LAW 114–74—NOV. 2, 2015 
(C) by inserting after paragraph (4) the following: 
‘‘(5) conspires to commit any offense described in any of 
paragraphs (1) through (3),’’. 
(3) AMENDMENT
TO
TITLE
XVI.—Section 1632(a) of such 
Act (42 U.S.C. 1383a(a)) is amended— 
(A) in paragraph (3), by striking ‘‘or’’ at the end; 
(B) in paragraph (4), by adding ‘‘or’’ at the end; and 
(C) by inserting after paragraph (4) the following: 
‘‘(5) conspires to commit any offense described in any of 
paragraphs (1) through (3),’’. 
(b) INCREASED CRIMINAL PENALTIES FOR CERTAIN INDIVIDUALS 
VIOLATING POSITIONS OF TRUST.— 
(1) AMENDMENT TO TITLE II.—Section 208(a) of the Social 
Security Act (42 U.S.C. 408(a)), as amended by subsection 
(a), is further amended by striking the period at the end and 
inserting ‘‘, except that in the case of a person who receives 
a fee or other income for services performed in connection 
with any determination with respect to benefits under this 
title (including a claimant representative, translator, or current 
or former employee of the Social Security Administration), or 
who is a physician or other health care provider who submits, 
or causes the submission of, medical or other evidence in 
connection with any such determination, such person shall 
be guilty of a felony and upon conviction thereof shall be 
fined under title 18, United States Code, or imprisoned for 
not more than ten years, or both.’’. 
(2) AMENDMENT TO TITLE VIII.—Section 811(a) of such Act 
(42 U.S.C. 1011(a)), as amended by subsection (a), is further 
amended by striking the period at the end and inserting ‘‘, 
except that in the case of a person who receives a fee or 
other income for services performed in connection with any 
determination with respect to benefits under this title 
(including a claimant representative, translator, or current or 
former employee of the Social Security Administration), or who 
is a physician or other health care provider who submits, or 
causes the submission of, medical or other evidence in connec-
tion with any such determination, such person shall be guilty 
of a felony and upon conviction thereof shall be fined under 
title 18, United States Code, or imprisoned for not more than 
ten years, or both.’’. 
(3) AMENDMENT
TO
TITLE
XVI.—Section 1632(a) of such 
Act (42 U.S.C. 1383a(a)), as amended by subsection (a), is 
further amended by striking the period at the end and inserting 
‘‘, except that in the case of a person who receives a fee 
or other income for services performed in connection with any 
determination with respect to benefits under this title 
(including a claimant representative, translator, or current or 
former employee of the Social Security Administration), or who 
is a physician or other health care provider who submits, or 
causes the submission of, medical or other evidence in connec-
tion with any such determination, such person shall be guilty 
of a felony and upon conviction thereof shall be fined under 
title 18, United States Code, or imprisoned for not more than 
ten years, or both.’’. 
(c) INCREASED
CIVIL
MONETARY
PENALTIES
FOR
CERTAIN 
INDIVIDUALS VIOLATING POSITIONS OF TRUST.—Section 1129(a)(1) 
of the Social Security Act (42 U.S.C. 1320a–8(a)(1)) is amended, 
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129 STAT. 604 
PUBLIC LAW 114–74—NOV. 2, 2015 
in the matter following subparagraph (C), by inserting after ‘‘with-
holding disclosure of such fact’’ the following: ‘‘, except that in 
the case of such a person who receives a fee or other income 
for services performed in connection with any such determination 
(including a claimant representative, translator, or current or 
former employee of the Social Security Administration) or who 
is a physician or other health care provider who submits, or causes 
the submission of, medical or other evidence in connection with 
any such determination, the amount of such penalty shall be not 
more than $7,500’’. 
(d) NO BENEFITS PAYABLE TO INDIVIDUALS FOR WHOM A CIVIL 
MONETARY PENALTY IS IMPOSED FOR FRAUDULENTLY CONCEALING 
WORK ACTIVITY.—Section 222(c)(5) of the Social Security Act (42 
U.S.C. 422(c)(5)) is amended by inserting after ‘‘conviction by a 
Federal court’’ the following: ‘‘, or the imposition of a civil monetary 
penalty under section 1129,’’. 
SEC. 814. REFERENCES TO SOCIAL SECURITY AND MEDICARE IN ELEC-
TRONIC COMMUNICATIONS. 
(a) IN GENERAL.—Section 1140(a)(1) of the Social Security Act 
(42 U.S.C. 1320b–10(a)(1)) is amended by inserting ‘‘(including any 
Internet or other electronic communication)’’ after ‘‘or other commu-
nication’’. 
(b) EACH COMMUNICATION TREATED AS SEPARATE VIOLATION.— 
Section 1140(b) of such Act (42 U.S.C. 1320b–10(b)) is amended 
by inserting after the second sentence the following: ‘‘In the case 
of any items referred to in subsection (a)(1) consisting of Internet 
or other electronic communications, each dissemination, viewing, 
or accessing of such a communication which contains one or more 
words, letters, symbols, or emblems in violation of subsection (a) 
shall represent a separate violation’’. 
SEC. 815. CHANGE TO CAP ADJUSTMENT AUTHORITY. 
Section 251(b)(2)(B) of the Balanced Budget and Emergency 
Deficit Control Act of 1985 (2 U.S.C. 901(b)(2)(B)) is amended— 
(1) in clause (i)— 
(A) in the matter before subclause (I), by striking ‘‘and 
for the cost associated with conducting redeterminations 
of eligibility under title XVI of the Social Security Act’’ 
and inserting ‘‘, for the cost associated with conducting 
redeterminations of eligibility under title XVI of the Social 
Security Act, for the cost of co-operative disability investiga-
tion units, and for the cost associated with the prosecution 
of fraud in the programs and operations of the Social 
Security Administration by Special Assistant United States 
Attorneys’’; 
(B) in subclause (VI), by striking ‘‘$1,309,000,000’’ and 
inserting ‘‘$1,546,000,000’’; 
(C) in subclause (VII), by striking ‘‘$1,309,000,000’’ and 
inserting ‘‘$1,462,000,000’’; 
(D) in subclause (VIII), by striking ‘‘$1,309,000,000’’ 
and inserting ‘‘$1,410,000,000’’; and 
(E) in subclause (X), by striking ‘‘$1,309,000,000’’ and 
inserting ‘‘$1,302,000,000’’; 
(2) in clause (ii)(I), by inserting ‘‘, including work-related 
continuing disability reviews to determine whether earnings 
derived from services demonstrate an individual’s ability to 
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129 STAT. 605 
PUBLIC LAW 114–74—NOV. 2, 2015 
engage in substantial gainful activity’’ before the semicolon; 
and 
(3) in clause (ii)(III), by striking ‘‘and redeterminations’’ 
and inserting ‘‘, redeterminations, co-operative disability inves-
tigation units, and fraud prosecutions’’. 
Subtitle B—Promoting Opportunity for 
Disability Beneficiaries 
SEC. 821. TEMPORARY REAUTHORIZATION OF DISABILITY INSURANCE 
DEMONSTRATION PROJECT AUTHORITY. 
(a) TERMINATION DATE.—Section 234(d)(2) of the Social Security 
Act (42 U.S.C. 434(d)(2)) is amended by striking ‘‘December 18, 
2005’’ and inserting ‘‘December 31, 2021, and the authority to 
carry out such projects shall terminate on December 31, 2022’’. 
(b) AUTHORITY TO WAIVE COMPLIANCE WITH BENEFITS REQUIRE-
MENTS.—Section 234(c) of such Act is amended by striking 
‘‘December 17, 2005’’ and inserting ‘‘December 30, 2021’’. 
SEC. 822. MODIFICATION OF DEMONSTRATION PROJECT AUTHORITY. 
(a) IN GENERAL.—Section 234(a)(1) of the Social Security Act 
(42 U.S.C. 434(a)(1)) is amended in the matter preceding subpara-
graph (A) by inserting ‘‘to promote attachment to the labor force 
and’’ after ‘‘designed’’. 
(b) CONGRESSIONAL REVIEW PERIOD.—Section 234(c) of the 
Social Security Act (42 U.S.C. 434(c)), as amended by section 821(b) 
of this Act, is further amended by inserting ‘‘including the objectives 
of the experiment or demonstration project, the expected annual 
and total costs, and the dates on which the experiment or dem-
onstration project is expected to start and finish,’’ after ‘‘thereof,’’ 
(c) ADDITIONAL REQUIREMENTS.—Section 234 of the Social Secu-
rity Act (42 U.S.C. 434), as amended by subsection (b), is further 
amended by adding at the end the following: 
‘‘(e) ADDITIONAL REQUIREMENTS.—In developing and carrying 
out any experiment or demonstration project under this section, 
the Commissioner may not require any individual to participate 
in such experiment or demonstration project and shall ensure— 
‘‘(1) that the voluntary participation of individuals in such 
experiment or demonstration project is obtained through 
informed written consent which satisfies the requirements for 
informed consent established by the Commissioner for use in 
such experiment or demonstration project in which human sub-
jects are at risk; 
‘‘(2) that any individual’s voluntary agreement to partici-
pate in any such experiment or demonstration project may 
be revoked by such individual at any time; and 
‘‘(3) that such experiment or demonstration project is 
expected to yield statistically significant results.’’. 
(d) ANNUAL REPORTING DEADLINE.—Section 234(d)(1) of such 
Act is amended by striking ‘‘June 9’’ and inserting ‘‘September 
30’’. 
SEC. 823. PROMOTING OPPORTUNITY DEMONSTRATION PROJECT. 
Section 234 of the Social Security Act (42 U.S.C. 434), as 
amended by section 822 of this Act, is further amended by adding 
at the end the following: 
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129 STAT. 606 
PUBLIC LAW 114–74—NOV. 2, 2015 
‘‘(f) PROMOTING OPPORTUNITY DEMONSTRATION PROJECT.— 
‘‘(1) IN
GENERAL.—The Commissioner shall carry out a 
demonstration project under this subsection as described in 
paragraph (2) during a 5-year period beginning not later than 
January 1, 2017. 
‘‘(2) BENEFIT
OFFSET.—Under the demonstration project 
described in this paragraph, with respect to any individual 
participating in the project who is otherwise entitled to a benefit 
under section 223(a)(1) for a month— 
‘‘(A) any such benefit otherwise payable to the indi-
vidual for such month (other than a benefit payable for 
any month prior to the 1st month beginning after the 
date on which the individual’s entitlement to such benefit 
is determined) shall be reduced by $1 for each $2 by which 
the individual’s earnings derived from services paid during 
such month exceeds an amount equal to the individual’s 
impairment-related work expenses for such month (as 
determined under paragraph (3)), except that such benefit 
may not be reduced below $0; 
‘‘(B) no benefit shall be payable under section 202 
on the basis of the wages and self-employment income 
of the individual for any month for which the benefit of 
such individual under section 223(a)(1) is reduced to $0 
pursuant to subparagraph (A); 
‘‘(C) entitlement to any benefit described in subpara-
graph (A) or (B) shall not terminate due to earnings derived 
from services except following the first month for which 
such benefit has been reduced to $0 pursuant to subpara-
graph (A) (and the trial work period (as defined in section 
222(c)) and extended period of eligibility shall not apply 
to any such individual for any such month); and 
‘‘(D) in any case in which such an individual is entitled 
to hospital insurance benefits under part A of title XVIII 
by reason of section 226(b) and such individual’s entitle-
ment to a benefit described in subparagraph (A) or (B) 
or status as a qualified railroad retirement beneficiary 
is terminated pursuant to subparagraph (C), such indi-
vidual shall be deemed to be entitled to such benefits 
or to occupy such status (notwithstanding the termination 
of such entitlement or status) for the period of consecutive 
months throughout all of which the physical or mental 
impairment, on which such entitlement or status was 
based, continues, and throughout all of which such indi-
vidual would have been entitled to monthly insurance bene-
fits under title II or as a qualified railroad retirement 
beneficiary had such termination of entitlement or status 
not occurred, but not in excess of 93 such months. 
‘‘(3) IMPAIRMENT-RELATED WORK EXPENSES.— 
‘‘(A) IN GENERAL.—For purposes of paragraph (2)(A) 
and except as provided in subparagraph (C), the amount 
of an individual’s impairment-related work expenses for 
a month is deemed to be the minimum threshold amount. 
‘‘(B) MINIMUM
THRESHOLD
AMOUNT.—In this para-
graph, the term ‘minimum threshold amount’ means an 
amount, to be determined by the Commissioner, which 
shall not exceed the amount sufficient to demonstrate that 
Definition. 
Determination. 
Time period. 
Deadline. 
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129 STAT. 607 
PUBLIC LAW 114–74—NOV. 2, 2015 
an individual has rendered services in a month, as deter-
mined by the Commissioner under section 222(c)(4)(A). The 
Commissioner may test multiple minimum threshold 
amounts. 
‘‘(C) EXCEPTION
FOR
ITEMIZED
IMPAIRMENT-RELATED 
WORK EXPENSES.— 
‘‘(i) IN GENERAL.—Notwithstanding subparagraph 
(A), in any case in which the amount of such an individ-
ual’s itemized impairment-related work expenses (as 
defined in clause (ii)) for a month is greater than 
the minimum threshold amount, the amount of the 
individual’s impairment-related work expenses for the 
month shall be equal to the amount of the individual’s 
itemized impairment-related work expenses (as so 
defined) for the month. 
‘‘(ii) DEFINITION.—In this subparagraph, the term 
‘itemized impairment-related work expenses’ means 
the amount excluded under section 223(d)(4)(A) from 
an individual’s earnings for a month in determining 
whether an individual is able to engage in substantial 
gainful activity by reason of such earnings in such 
month, except that such amount does not include the 
cost to the individual of any item or service for which 
the individual does not provide to the Commissioner 
a satisfactory itemized accounting. 
‘‘(D) LIMITATION.—Notwithstanding the other provi-
sions of this paragraph, for purposes of paragraph (2)(A), 
the amount of an individual’s impairment-related work 
expenses for a month shall not exceed the amount of 
earnings derived from services, prescribed by the Commis-
sioner under regulations issued pursuant to section 
223(d)(4)(A), sufficient to demonstrate an individual’s 
ability to engage in substantial gainful activity.’’. 
SEC. 824. USE OF ELECTRONIC PAYROLL DATA 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 1183 the fol-
lowing: ‘‘ 
‘‘INFORMATION EXCHANGE WITH PAYROLL DATA PROVIDERS 
‘‘SEC. 1184. (a) IN GENERAL.—The Commissioner of Social Secu-
rity may enter into an information exchange with a payroll data 
provider for purposes of— 
‘‘(1) efficiently administering— 
‘‘(A) monthly insurance benefits under subsections 
(d)(1)(B)(ii), 
(d)(6)(A)(ii), 
(d)(6)(B), 
(e)(1)(B)(ii), 
and 
(f)(1)(B)(ii) of section 202 and subsection (a)(1) of section 
223; and 
‘‘(B) supplemental security income benefits under title 
XVI; and 
‘‘(2) preventing improper payments of such benefits without 
the need for verification by independent or collateral sources. 
‘‘(b) NOTIFICATION REQUIREMENTS.—Before entering into an 
information exchange pursuant to subsection (a), the Commissioner 
shall publish in the Federal Register a notice describing the 
Federal Register, 
publication. 
Notice. 
42 USC 1320e–3. 
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129 STAT. 608 
PUBLIC LAW 114–74—NOV. 2, 2015 
information exchange and the extent to which the information 
received through such exchange is— 
‘‘(1) relevant and necessary to— 
‘‘(A) accurately determine entitlement to, and the 
amount of, benefits described under subparagraph (A) of 
subsection (a)(1); 
‘‘(B) accurately determine eligibility for, and the 
amount of, benefits described in subparagraph (B) of such 
subsection; and 
‘‘(C) prevent improper payment of such benefits; and 
‘‘(2) sufficiently accurate, up-to-date, and complete. 
‘‘(c) DEFINITIONS.—For purposes of this section: 
‘‘(1) PAYROLL DATA PROVIDER.—The term ‘payroll data pro-
vider’ means payroll providers, wage verification companies, 
and other commercial or non-commercial entities that collect 
and maintain data regarding employment and wages, without 
regard to whether the entity provides such data for a fee 
or without cost. 
‘‘(2) INFORMATION
EXCHANGE.—The term ‘information 
exchange’ means the automated comparison of a system of 
records maintained by the Commissioner of Social Security 
with records maintained by a payroll data provider.’’. 
(b) AUTHORIZATION TO ACCESS INFORMATION HELD BY PAYROLL 
DATA PROVIDERS.— 
(1) AMENDMENT TO TITLE II.—Section 225 of the Social 
Security Act (42 U.S.C. 425) is amended by adding at the 
end the following: 
‘‘(c) ACCESS TO INFORMATION HELD BY PAYROLL DATA PRO-
VIDERS.—(1) The Commissioner of Social Security may require each 
individual who applies for or is entitled to monthly insurance bene-
fits under subsections (d)(1)(B)(ii), (d)(6)(A)(ii), (d)(6)(B), (e)(1)(B)(ii), 
and (f)(1)(B)(ii) of section 202 and subsection (a)(1) of section 223 
to provide authorization by the individual for the Commissioner 
to obtain from any payroll data provider (as defined in section 
1184(c)(1)) any record held by the payroll data provider with respect 
to the individual whenever the Commissioner determines the record 
is needed in connection with a determination of initial or ongoing 
entitlement to such benefits. 
‘‘(2) An authorization provided by an individual under this 
subsection shall remain effective until the earliest of— 
‘‘(A) the rendering of a final adverse decision on the individ-
ual’s application or entitlement to benefits under this title; 
‘‘(B) the termination of the individual’s entitlement to bene-
fits under this title; or 
‘‘(C) the express revocation by the individual of the 
authorization, in a written notification to the Commissioner. 
‘‘(3) The Commissioner of Social Security is not required to 
furnish any authorization obtained pursuant to this subsection to 
the payroll data provider. 
‘‘(4) The Commissioner shall inform any person who provides 
authorization pursuant to this clause of the duration and scope 
of the authorization. 
‘‘(5) If an individual who applies for or is entitled to benefits 
under this title refuses to provide, or revokes, any authorization 
under this subsection, subsection (d) shall not apply to such indi-
vidual beginning with the first day of the first month in which 
he or she refuses or revokes such authorization.’’. 
Effective date. 
Notification. 
Notification. 
Termination 
date. 
Determination. 
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129 STAT. 609 
PUBLIC LAW 114–74—NOV. 2, 2015 
(2) TITLE XVI.—Section 1631(e)(1)(B) of the Social Security 
Act (42 U.S.C. 1383(e)(1)(B)) is amended by adding at the 
end the following: 
‘‘(iii)(I) The Commissioner of Social Security may require each 
applicant for, or recipient of, benefits under this title to provide 
authorization by the applicant, recipient or legal guardian (or by 
any other person whose income or resources are material to the 
determination of the eligibility of the applicant or recipient for 
such benefits) for the Commissioner to obtain from any payroll 
data provider (as defined in section 1184(c)(1)) any record held 
by the payroll data provider with respect to the applicant or 
recipient (or any such other person) whenever the Commissioner 
determines the record is needed in connection with a determination 
of initial or ongoing eligibility or the amount of such benefits. 
‘‘(II) An authorization provided by an applicant, recipient or 
legal guardian (or any other person whose income or resources 
are material to the determination of the eligibility of the applicant 
or recipient) under this clause shall remain effective until the 
earliest of— 
‘‘(aa) the rendering of a final adverse decision on the 
applicant’s application for eligibility for benefits under this 
title; 
‘‘(bb) the cessation of the recipient’s eligibility for benefits 
under this title; 
‘‘(cc) the express revocation by the applicant, or recipient 
(or such other person referred to in subclause (I)) of the 
authorization, in a written notification to the Commissioner; 
or 
‘‘(dd) the termination of the basis upon which the Commis-
sioner considers another person’s income and resources avail-
able to the applicant or recipient. 
‘‘(III) The Commissioner of Social Security is not required to 
furnish any authorization obtained pursuant to this clause to the 
payroll data provider. 
‘‘(IV) The Commissioner shall inform any person who provides 
authorization pursuant to this clause of the duration and scope 
of the authorization. 
‘‘(V) If an applicant for, or recipient of, benefits under this 
title (or any such other person referred to in subclause (I)) refuses 
to provide, or revokes, any authorization required by subclause 
(I), paragraph (2)(B) and paragraph (10) shall not apply to such 
applicant or recipient beginning with the first day of the first 
month in which he or she refuses or revokes such authorization.’’. 
(c) REPORTING RESPONSIBILITIES FOR BENEFICIARIES SUBJECT 
TO INFORMATION EXCHANGE WITH PAYROLL DATA PROVIDER.— 
(1) AMENDMENT TO TITLE II.—Section 225 of the Social 
Security (42 U.S.C. 425), as amended by subsection (b)(1), is 
further amended by adding at the end the following: 
‘‘(d) An individual who has authorized the Commissioner of 
Social Security to obtain records from a payroll data provider under 
subsection (c) 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.’’. 
(2) AMENDMENT TO TITLE XVI.—Section 1631(e) of the Social 
Security Act (42 U.S.C. 1383(e)) is amended— 
(A) in paragraph (2)— 
Effective date. 
Notification. 
Notification. 
Termination 
date. 
Determination. 
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129 STAT. 610 
PUBLIC LAW 114–74—NOV. 2, 2015 
(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. 
Determinations. 
42 USC 425 note. 
Notification. 
Guidelines. 
Deadline. 
Procedures. 
42 USC 1320e–3 
note. 
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129 STAT. 611 
PUBLIC LAW 114–74—NOV. 2, 2015 
‘‘(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 
Deadline. 
42 USC 423 note. 
42 USC 423 note. 
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129 STAT. 612 
PUBLIC LAW 114–74—NOV. 2, 2015 
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. 
Termination 
date. 
Termination 
date. 
Effective date. 
Applicability. 
42 USC 402 note. 
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129 STAT. 613 
PUBLIC LAW 114–74—NOV. 2, 2015 
‘‘(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 
Time periods. 
Applicability. 
42 USC 421 note. 
Determination. 
Applicability. 
42 USC 402 note. 
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129 STAT. 614 
PUBLIC LAW 114–74—NOV. 2, 2015 
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. 
Notification. 
Termination. 
Determinations. 
Applicability. 
42 USC 404. 
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129 STAT. 615 
PUBLIC LAW 114–74—NOV. 2, 2015 
‘‘(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 
Contracts. 
Procedure. 
42 USC 
1320a–6a. 
Applicability. 
42 USC 404 note. 
Determination. 
Records. 
Notification. 
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129 STAT. 616 
PUBLIC LAW 114–74—NOV. 2, 2015 
‘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 
Deadline. 
Determination. 
Notification. 
Notification. 
Certification. 
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129 STAT. 617 
PUBLIC LAW 114–74—NOV. 2, 2015 
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). 
Applicability. 
42 USC 
1320a–6a note. 
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129 STAT. 618 
PUBLIC LAW 114–74—NOV. 2, 2015 
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 
42 USC 421 note. 
Time period. 
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129 STAT. 619 
PUBLIC LAW 114–74—NOV. 2, 2015 
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 
42 USC 404 note. 
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129 STAT. 620 
PUBLIC LAW 114–74—NOV. 2, 2015 
(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. 
Effective date. 
31 USC 3101 
note. 
Time period. 
Deadlines. 
42 USC 904 note. 
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129 STAT. 621 
PUBLIC LAW 114–74—NOV. 2, 2015 
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— 
Notifications. 
President. 
Deadlines. 
Deadline. 
Reports. 
47 USC 921 note. 
47 USC 921 note. 
47 USC 921 note. 
47 USC 901 note. 
Spectrum 
Pipeline Act 
of 2015. 
31 USC 3101 
note. 
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129 STAT. 622 
PUBLIC LAW 114–74—NOV. 2, 2015 
(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. 
Appropriation 
authorization. 
Deadline. 
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129 STAT. 623 
PUBLIC LAW 114–74—NOV. 2, 2015 
‘‘(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)’’. 
Deadline. 
Deadline. 
Plans. 
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129 STAT. 624 
PUBLIC LAW 114–74—NOV. 2, 2015 
(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’’. 
Expiration date. 
Coordination. 
Timeline. 
Assessment. 
Coordination. 
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129 STAT. 625 
PUBLIC LAW 114–74—NOV. 2, 2015 
SEC. 1008. REPORTS TO CONGRESS. 
Not later than 3 years after the date of the enactment of 
this Act, the Commission shall submit to Congress— 
(1) a report containing an analysis of the results of the 
rules changes relating to the frequencies between 3550 mega-
hertz and 3650 megahertz; and 
(2) a report containing an analysis of proposals to promote 
and identify additional spectrum bands that can be shared 
between incumbent uses and new licensed, and unlicensed serv-
ices under such rules and identification of at least 1 gigahertz 
between 6 gigahertz and 57 GHz for such use. 
TITLE XI—REVENUE PROVISIONS 
RELATED TO TAX COMPLIANCE 
SEC. 1101. PARTNERSHIP AUDITS AND ADJUSTMENTS. 
(a) REPEAL OF TEFRA PARTNERSHIP AUDIT RULES.—Chapter 
63 of the Internal Revenue Code of 1986 is amended by striking 
subchapter C (and by striking the item relating to such subchapter 
in the table of subchapters for such chapter). 
(b) REPEAL OF ELECTING LARGE PARTNERSHIP RULES.— 
(1) IN GENERAL.—Subchapter K of chapter 1 of such Code 
is amended by striking part IV (and by striking the item 
relating to such part in the table of parts for such subchapter). 
(2) ASSESSMENT RULES RELATING TO ELECTING LARGE PART-
NERSHIPS.—Chapter 63 of such Code is amended by striking 
subchapter D (and by striking the item relating to such sub-
chapter in the table of subchapters for such chapter). 
(c) PARTNERSHIP AUDIT REFORM.— 
(1) IN GENERAL.—Chapter 63 of such Code, as amended 
by the preceding provisions of this section, is amended by 
inserting after subchapter B the following new subchapter: 
‘‘Subchapter C—Treatment of Partnerships 
‘‘PART I—IN GENERAL 
‘‘PART II—PARTNERSHIP ADJUSTMENTS 
‘‘PART III—PROCEDURE 
‘‘PART IV—DEFINITIONS AND SPECIAL RULES 
‘‘PART I—IN GENERAL 
‘‘Sec. 6221. Determination at partnership level. 
‘‘Sec. 6222. Partner’s return must be consistent with partnership return. 
‘‘Sec. 6223. Designation of partnership representative. 
‘‘SEC. 6221. DETERMINATION AT PARTNERSHIP LEVEL. 
‘‘(a) IN GENERAL.—Any adjustment to items of income, gain, 
loss, deduction, or credit of a partnership for a partnership taxable 
year (and any partner’s distributive share thereof) shall be deter-
mined, any tax attributable thereto shall be assessed and collected, 
and the applicability of any penalty, addition to tax, or additional 
amount which relates to an adjustment to any such item or share 
shall be determined, at the partnership level pursuant to this 
subchapter. 
26 USC 6221. 
26 USC 
prec. 6221. 
26 USC 
prec. 6201. 
26 USC 
prec. 701. 
26 USC 
prec. 6201. 
Analysis. 
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129 STAT. 626 
PUBLIC LAW 114–74—NOV. 2, 2015 
‘‘(b) ELECTION OUT FOR CERTAIN PARTNERSHIPS WITH 100 OR 
FEWER PARTNERS, ETC.— 
‘‘(1) IN GENERAL.—This subchapter shall not apply with 
respect to any partnership for any taxable year if— 
‘‘(A) the partnership elects the application of this sub-
section for such taxable year, 
‘‘(B) for such taxable year the partnership is required 
to furnish 100 or fewer statements under section 6031(b) 
with respect to its partners, 
‘‘(C) each of the partners of such partnership is an 
individual, a C corporation, any foreign entity that would 
be treated as a C corporation were it domestic, an S cor-
poration, or an estate of a deceased partner, 
‘‘(D) the election— 
‘‘(i) is made with a timely filed return for such 
taxable year, and 
‘‘(ii) includes (in the manner prescribed by the 
Secretary) a disclosure of the name and taxpayer 
identification number of each partner of such partner-
ship, and 
‘‘(E) the partnership notifies each such partner of such 
election in the manner prescribed by the Secretary. 
‘‘(2) SPECIAL RULES RELATING TO CERTAIN PARTNERS.— 
‘‘(A) S CORPORATION
PARTNERS.—In the case of a 
partner that is an S corporation— 
‘‘(i) the partnership shall only be treated as 
meeting the requirements of paragraph (1)(C) with 
respect to such partner if such partnership includes 
(in the manner prescribed by the Secretary) a disclo-
sure of the name and taxpayer identification number 
of each person with respect to whom such S corporation 
is required to furnish a statement under section 
6037(b) for the taxable year of the S corporation ending 
with or within the partnership taxable year for which 
the application of this subsection is elected, and 
‘‘(ii) the statements such S corporation is required 
to so furnish shall be treated as statements furnished 
by the partnership for purposes of paragraph (1)(B). 
‘‘(B) FOREIGN PARTNERS.—For purposes of paragraph 
(1)(D)(ii), the Secretary may provide for alternative identi-
fication of any foreign partners. 
‘‘(C) OTHER PARTNERS.—The Secretary may by regula-
tion or other guidance prescribe rules similar to the rules 
of subparagraph (A) with respect to any partners not 
described in such subparagraph or paragraph (1)(C). 
‘‘SEC. 6222. PARTNER’S RETURN MUST BE CONSISTENT WITH PARTNER-
SHIP RETURN. 
‘‘(a) IN GENERAL.—A partner shall, on the partner’s return, 
treat each item of income, gain, loss, deduction, or credit attrib-
utable to a partnership in a manner which is consistent with 
the treatment of such income, gain, loss, deduction, or credit on 
the partnership return. 
‘‘(b) 
UNDERPAYMENT
DUE
TO
INCONSISTENT
TREATMENT 
ASSESSED AS MATH ERROR.—Any underpayment of tax by a partner 
by reason of failing to comply with the requirements of subsection 
(a) shall be assessed and collected in the same manner as if such 
26 USC 6222. 
Notification. 
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129 STAT. 627 
PUBLIC LAW 114–74—NOV. 2, 2015 
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. 
26 USC 
prec. 6225. 
26 USC 6223. 
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129 STAT. 628 
PUBLIC LAW 114–74—NOV. 2, 2015 
‘‘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 
Procedures. 
26 USC 6225. 
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129 STAT. 629 
PUBLIC LAW 114–74—NOV. 2, 2015 
‘‘(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. 
Determination. 
Applicability. 
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129 STAT. 630 
PUBLIC LAW 114–74—NOV. 2, 2015 
‘‘(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 
Deadline. 
Notice. 
26 USC 6226. 
Deadline. 
Time period. 
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129 STAT. 631 
PUBLIC LAW 114–74—NOV. 2, 2015 
‘‘(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 
Applicability. 
Determination. 
26 USC 6227. 
Determination. 
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129 STAT. 632 
PUBLIC LAW 114–74—NOV. 2, 2015 
‘‘(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 
26 USC 6232. 
Deadline. 
Mailings. 
26 USC 6231. 
26 USC 6231 
note. 
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129 STAT. 633 
PUBLIC LAW 114–74—NOV. 2, 2015 
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, 
Time period. 
26 USC 6233. 
Notice. 
Notification. 
Applicability. 
Courts. 
Time period. 
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129 STAT. 634 
PUBLIC LAW 114–74—NOV. 2, 2015 
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 
Deadline. 
26 USC 6234. 
Determination. 
Determination. 
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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 
Applicability. 
26 USC 6235. 
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PUBLIC LAW 114–74—NOV. 2, 2015 
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— 
Applicability. 
26 USC 6241. 
26 USC 
prec. 6241. 
Time period. 
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129 STAT. 637 
PUBLIC LAW 114–74—NOV. 2, 2015 
‘‘(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’’. 
Determination. 
26 USC 6330. 
26 USC 
prec. 6201. 
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129 STAT. 638 
PUBLIC LAW 114–74—NOV. 2, 2015 
(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 
Determination. 
Applicability. 
26 USC 6221 
note. 
26 USC 6503. 
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129 STAT. 639 
PUBLIC LAW 114–74—NOV. 2, 2015 
LEGISLATIVE HISTORY—H.R. 1314: 
HOUSE REPORTS: No. 114–67 (Comm. on Ways and Means). 
CONGRESSIONAL RECORD, Vol. 161 (2015): 
Apr. 15, considered and passed House. 
May 14, 18–22, considered and passed Senate, amended. 
June 12, House failed to concur in Senate amendment. 
Oct. 28, House concurred in Senate amendment with an amendment. Senate 
considered House amendment. 
Oct. 29, 30, Senate considered and concurred in House amendment. 
DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2015): 
Nov. 2, Presidential remarks. 
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’’. 
Approved November 2, 2015. 
40 USC 5101 
note. 
Applicability. 
26 USC 704. 
26 USC 704. 
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