instruction:
In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
question:
SECTION 1. SHORT TITLE.

This Act may be cited as the ''Disability Insurance Reform Act of
1994''.

SEC. 2. REFORM OF MONTHLY INSURANCE BENEFITS BASED ON DISABILITY
INVOLVING SUBSTANCE ABUSE.

(a) In General.--Section 225 of the Social Security Act (42 U.S.C.
425) is amended--
(1) by striking the heading and inserting the following:

''additional rules relating to benefits based on disability

''Suspension of Benefits'';

(2) by inserting before subsection (b) the following new
heading:

''Continued Payments During Rehabilitation Program''; and

(3) by adding at the end the following new subsection:

''Nonpayment of Benefits by Reason of Substance Abuse

''(c)(1)(A) Notwithstanding any other provision of this title, no
benefit based on disability under this title shall be paid to any
individual for any month during any period of consecutive months
beginning with a month in which such individual is medically determined
to be a drug addict or an alcoholic and ending with a month as of the
end of which--
''(i) the person, through an outpatient rehabilitation
program, has subsequently undergone treatment appropriate for
such condition for 3 months at an institution or facility
approved by the Secretary for purposes of this subsection, and
has complied with the terms, conditions, and requirements of
such treatment and with the requirements imposed under
paragraph (4); and
''(ii) the Secretary determines that--
''(I) the person has made progress towards
recovery, or has recovered; or
''(II) if the person has not made progress towards
recovery, the person meets such requirements
established in regulations as the Secretary deems
appropriate to effectuate the purposes of this title.
''(B) In any case in which an individual's disability is based in
whole or in part on a medical determination that the individual is a
drug addict or alcoholic, such individual's benefits based on
disability under this title which are otherwise payable for any month
preceding the month in which application for such benefits is made
(pursuant to section 202(j)(1) or the last sentence of section 223(b))
shall be payable only pursuant to a certification of such payment to a
representative payee of such individual pursuant to section 205(j).
''(2) If, after the 3-month treatment period referred to in
paragraph (1)(A), the Secretary determines that the person has not
recovered from the condition treated, then, as a condition of receiving
benefits based on disability under this title for any month after such
period, the person must continue to comply with the terms, conditions,
and requirements of such treatment and with the requirements imposed
under paragraph (4), until the month in which the Secretary determines
that the person has recovered from such condition.
''(3)(A) Notwithstanding any other provision of this title, in the
case of a person who fails to continue treatment as required by
paragraph (2), no benefit based on disability shall be paid under this
title for any month ending after such failure and before the person has
completed 2 weeks of such treatment.
''(B) In the case of a person to whom a benefit based on disability
under this title becomes payable for any month after a month for which
such benefit was not payable under subparagraph (A), and who thereafter
fails to continue treatment as required by paragraph (2), no benefit
based on disability shall be paid under this title for any month ending
after such failure and before the person has completed 2 months of such
treatment.
''(C) In the case of a person to whom a benefit based on disability
under this title becomes payable for any month after a month for which
such benefit was not payable under subparagraph (B), and who thereafter
fails to continue treatment as required by paragraph (2), no benefit
based on disability shall be paid under this title for any month ending
after such failure.
''(4) For purposes of this subsection, the term 'benefit based on
disability' of an individual means a disability insurance benefit of
such individual under section 223 or a child's, widow's, or widower's
insurance benefit of such individual under section 202 based on the
disability of such individual.
''(5) Monthly insurance benefits under this title which would be
payable to any individual (other than the disabled individual to whom
benefits are not payable by reason of this subsection) on the basis of
the wages and self-employment income of such a disabled individual but
for the provisions of paragraph (1), shall be payable as though such
disabled individual were receiving such benefits which are not payable
under this subsection.
''(6) The Secretary shall provide for the monitoring and testing of
all individuals who are receiving benefits under this title and who as
a condition of such benefits are required to be undergoing treatment
and complying with the terms, conditions, and requirements thereof as
described in the preceding provisions of this subsection, in order to
assure such compliance and to determine the extent to which the
imposition of such requirements is contributing to the achievement of
the purposes of this title. The Secretary may retain jurisdiction in
the case of a hearing before the Secretary under this title to the
extent the Secretary determines necessary to carry out the preceding
sentence. The Secretary shall annually submit to the Congress a full
and complete report on the Secretary's activities under this paragraph.
''(7) The Secretary, in consultation with drug and alcohol
treatment professionals, shall develop standards for drug and alcohol
treatment programs, and in consultation with States, shall develop
guidelines to be used to review and evaluate the progress of
participants in such programs.''.
(b) Preservation of Medicare Benefits.--Section 226 of such title
(42 U.S.C. 426) is amended by adding at the end the following:
''(i) For purposes of this section, each person to whom a benefit
for any month is not payable by reason of section 225(c) shall be
treated as entitled to such benefit for such month if such person would
be entitled to such benefit for such month in the absence of such
section.''.
(c) Effective Date.--The amendments made by this section shall
apply to benefits payable for months beginning 90 or more days after
the date of the enactment of this Act.

SEC. 3. RESTRICTION OF FUTURE REPRESENTATIVE PAYEES TO GOVERNMENT
AGENCIES, STATE-LICENCED OR CERTIFIED FACILITIES, OR
STATE-BONDED OR LICENSED COMMUNITY-BASED NONPROFIT SOCIAL
SERVICE AGENCIES.

(a) Restriction to Qualified Organizations.--Section 205(j) of the
Social Security Act (42 U.S.C. 405(j)) is amended--
(1) in paragraph (1), by striking ''another individual, or
an organization,'' and inserting ''a qualified organization'';
(2) in paragraph (2)(A)(i), by striking ''the person'' and
inserting ''the qualified organization'', and by striking
''such person'' and inserting ''representatives of such
qualified organization'';
(3) in paragraph (2)(B)(i), by striking ''person'' each
place it appears in subclause (I) and inserting ''qualified
organization'', by striking ''person's social security account
number (or employer identification number)'' in subclause (II)
and inserting ''qualified organization's employer
identification number'', by striking ''such person'' in
subclause (III) and inserting ''such qualified organization'',
and by striking ''such person'' each place it appears in
subclause (IV) and inserting ''such qualified organization'';
and
(4) by striking paragraph (2)(B)(ii), by redesignating
paragraph (2)(B)(i) (as amended by paragraph (3)) as paragraph
(2)(B), and by redesignating subclauses (I), (II), (III), and
(IV) of paragraph (2)(B) (as redesignated) as clauses (i),
(ii), (iii), and (iv), respectively.
(b) Qualified Organization Defined.--
(1) In general.--Section 205(j)(2)(C)(i) of such Act (42
U.S.C. 405(j)(2)(C)(i)) is amended by striking ''Benefits of an
individual may not be certified for payment to any other person
pursuant to this subsection if--'' and inserting ''For purposes
of this subsection, the term 'qualified organization' means an
agency or instrumentality of a State or a political subdivision
of a State, a nonprofit facility that is licensed or certified
as a care facility under the law of a State or a political
subdivision of a State, and, in connection with services
provided as a representative payee under this subsection in any
State, a community-based nonprofit social service agency which
is bonded or licensed in such State. Except as otherwise
provided in this subsection, such term does not include any
person if--''.
(2) Conforming amendments.--Section 205(j)(2)(C) of such
Act is further amended--
(A) by striking ''subparagraph (B)(i)(III)'' in
clause (i)(I) and inserting ''subparagraph (B)(iii)'',
and by striking ''subparagraph (B)(i)(IV)'' in clause
(i)(II) and inserting ''subparagraph (B)(iv)'';
(B) in clause (iii), by striking subclauses (I) and
(IV), by redesignating subclauses (II), (III), and (V)
as subclauses (I), (II), and (III), respectively, and
by striking ''an individual'' in subclause (III) (as
redesignated) and inserting ''a person''; and
(C) in clause (iv), by striking ''individual'' each
place it appears and inserting ''person''.
(c) Authorization for Fees.--Section 205(j)(4) of such Act (42
U.S.C. 405(j)(4)) is amended--
(1) by striking subparagraph (A) and inserting the
following:
''(4)(A) A qualified organization may collect from an individual a
monthly fee for expenses (including overhead) incurred by such
organization in providing services performed as such individual's
representative payee pursuant to this subsection if such fee does not
exceed 10 percent of the monthly benefit involved. Any agreement
providing for a fee in excess of the amount permitted under this
subparagraph shall be void and shall be treated as misuse by such
organization of such individual's benefits.'';
(2) by striking subparagraph (B);
(3) by redesignating subparagraph (C) as subparagraph (B)
and, in subparagraph (B) (as so redesignated), by striking
''qualified organization'' and inserting ''person''; and
(4) by striking subparagraph (D).
(d) Effective Date.--The amendments made by this section shall
apply with respect to certifications of payments to representative
payees made on or after the date of the enactment of this Act. Section
205(j) of the Social Security Act (42 U.S.C. 405(j)) as in effect
immediately before the date of the enactment of this Act shall continue
to apply, in the case of any person who is then a representative payee
under such section with respect to benefits for which certification of
payment to such person under such section is then in effect, until such
certification ceases to be effective under such section as then in
effect.
answer:
Disability Insurance Reform Act of 1994 - Amends title II (Old Age, Survivors and Disability Insurance) of the Social Security Act to prohibit the payment of benefits based on disability to any individual who is a drug addict or alcoholic until such individual: (1) undergoes appropriate substance abuse treatment at an approved facility; (2) has complied with the terms of such treatment; and (3) either recovers or makes progress towards recovery, with benefits terminated if the individual fails to continue treatment.
Requires lump sum disability payments to be made only through a qualified governmental or nonprofit care facility or community-based social service agency representative payees. Makes other changes with regard to representative payees, including allowing them to collect monthly fees for expenses in providing service.
Requires the Secretary of Health and Human Services to provide for a monitoring and testing program to ensure individual compliance with treatment requirements.

question:
SECTION 1. SHORT TITLE.

This Act may be cited as the ''Reducing Duplication Overseas Act of
2012''.

SEC. 2. PURPOSE.

The purpose of this Act is to promote high-quality, cost-efficient,
and effective administrative support services to agencies overseas.

SEC. 3. DEFINITIONS.

In this Act:
(1) Agency.--The term ''agency'' means a department,
agency, or independent establishment in the executive branch
performing any foreign affairs functions.
(2) Appropriate congressional committees.--The term
''appropriate congressional committees'' means--
(A) the Committee on Foreign Relations of the
Senate;
(B) the Committee on Homeland Security and
Governmental Affairs of the Senate;
(C) the Committee on Appropriations of the Senate;
(D) the Committee on Foreign Affairs of the House
of Representatives;
(E) the Committee on Oversight and Government
Reform of the House of Representatives; and
(F) the Committee on Appropriations of the House of
Representatives.
(3) International cooperative administrative support
services system.--The term ''International Cooperative
Administrative Support Services system'' means the mechanism
established pursuant to section 23 of the State Department
Basic Authorities Act of 1956 (22 U.S.C. 2695) by which the
United States Government manages and funds administrative
support services at overseas posts.
(4) International cooperative administrative support
services customer agencies.--The term ''International
Cooperative Administrative Support Services customer agencies''
means agencies participating in the International Cooperative
Administrative Support Services system.
(5) International cooperative administrative support
services executive board.--The term ''International Cooperative
Administrative Support Services Executive Board'' means the
highest-level International Cooperative Administrative Support
Services policy-making body comprised of senior representatives
of agencies participating in the International Cooperative
Administrative Support Services system.

SEC. 4. PARTICIPATION IN INTERNATIONAL COOPERATIVE ADMINISTRATIVE
SUPPORT SERVICES SYSTEM.

(a) In General.--Not later than 2 years after the date of the
enactment of this Act, each agency with operations overseas under the
authority of the Chief of Mission pursuant to section 207 of the
Foreign Service Act of 1980 (22 U.S.C. 3927) shall participate in the
International Cooperative Administrative Support Services system for
purposes of obtaining household furniture, furnishings, and appliance
pools services, motor pool services, and management services unless--
(1) the agency provides a detailed explanation for
evaluation and decision by the International Cooperative
Administrative Support Services Executive Board that
describes--
(A) how the agency will provide the service outside
of the International Cooperative Administrative Support
Services system;
(B) the cost to the agency of the service; and
(C) how providing the service outside the
International Cooperative Administrative Support
Services system will not increase overall costs to the
United States Government; or
(2) the agency submits a detailed explanation for
evaluation and decision by the International Cooperative
Administrative Support Services Executive Board certifying that
the mission of the agency cannot be achieved by such
participation in the International Cooperative Administrative
Support Services system.
(b) Rule of Construction.--The motor pool services requirement
under subsection (a) applies to administrative services, and shall not
be construed as superseding, removing, or limiting any statutory or
programmatic requirements related to agency use or procurement of
vehicles.

SEC. 5. USE OF ALTERNATE SERVICE PROVIDERS.

The International Cooperative Administrative Support Services
Executive Board shall allow an agency to act as an alternate service
provider for administrative services at an overseas post in place of
the existing International Cooperative Administrative Support Services
provider for purposes of reducing overall costs to the United States
Government if the agency--
(1) demonstrates through a business case that it can
provide the administrative service more efficiently; and
(2) agrees to provide the administrative service to all
other International Cooperative Administrative Support Services
customer agencies at the overseas post.

SEC. 6. REPORTING REQUIREMENTS.

(a) Biennial Report.--
(1) In general.--Not later than 1 year after the date of
the enactment of this Act, and every 2 years thereafter, the
Secretary of State, in consultation with the International
Cooperative Administrative Support Services Executive Board,
shall submit to the appropriate congressional committees a
report on the International Cooperative Administrative Support
Services system.
(2) Content.--The report required under paragraph (1)
shall--
(A) establish performance goals to define the level
of performance to be achieved in providing efficient,
effective, and equitable administrative services to
International Cooperative Administrative Support
Services customer agencies;
(B) establish a balanced set of performance
indicators to be used in measuring or assessing
progress toward each performance goal;
(C) describe how the International Cooperative
Administrative Support Services system ensures the
accuracy and reliability of the data used to measure
progress; and
(D) identify strategies and the resources required
to achieve performance goals.
(b) Comptroller General Review.--
(1) In general.--Not later than 2 years after the date of
the enactment of this Act, the Comptroller General of the
United States shall submit to the appropriate congressional
committees a review of the International Cooperative
Administrative Support Services system.
(2) Content.--The review required under paragraph (1) shall
include--
(A) an evaluation of whether requiring agencies to
participate in the International Cooperative
Administrative Support Services system for household
furniture, furnishings, and appliance pools services
and motor pools services has increased cost-efficiency
and reduced administrative redundancies;
(B) recommendations, if warranted, for further
consolidation of services in the International
Cooperative Administrative Support Services system;
(C) an evaluation of how implementation of this Act
is affecting the performance of International
Cooperative Administrative Support Services customer
agencies; and
(D) recommendations, if warranted, for improving
the International Cooperative Administrative Support
Services system and implementing this Act.
answer:
Reducing Duplication Overseas Act of 2012 - Requires a federal agency that performs any foreign affairs functions and operates overseas to participate in the International Cooperative Administrative Support Services system for purposes of obtaining household furniture, furnishings, and appliance pools services, motor pool services, and management services unless such agency provides a detailed explanation that describes: (1) how such agency will provide the service outside the system, (2) the cost of the service, and (3) how providing the service outside the system will not increase overall costs. Requires such an agency to provide a detailed explanation certifying that the mission of the agency cannot be achieved by participation in the system.

Requires the International Cooperative Administrative Support Services Executive Board to allow an agency to act as an alternative provider for administrative services at an overseas post in place of the system if the agency: (1) demonstratives that it can provide the administrative service more efficiently, and (2) agrees to provide the administrative service to all other International Cooperative Administrative Support Services customer agencies at the overseas post.

Requires the Comptroller General (GAO) to submit a review of the system to specified congressional committees

question:
SECTION 1. SHORT TITLE.

This Act may be cited as the ''Personal Holding Company Tax Repeal
Act of 2004''.

SEC. 2. REPEAL OF PERSONAL HOLDING COMPANY TAX.

(a) In General.--Part II of subchapter G of chapter 1 of the
Internal Revenue Code of 1986 (relating to personal holding companies)
is hereby repealed.
(b) Conforming Amendments.--
(1) Section 12(2) of such Code is amended to read as
follows:
''(2) For accumulated earnings tax, see part I of
subchapter G (sec. 531 and following).''.
(2) Section 26(b)(2) of such Code is amended by striking
subparagraph (G) and by redesignating the succeeding
subparagraphs accordingly.
(3) Section 30A(c) of such Code is amended by striking
paragraph (3), by inserting ''or'' at the end of paragraph (2),
and by redesignating paragraph (4) as paragraph (3).
(4) Section 41(e)(7)(E) of such Code is amended by adding
''and'' at the end of clause (i), by striking clause (ii), and
by redesignating clause (iii) as clause (ii).
(5) Section 56(b)(2) of such Code is amended by striking
subparagraph (C) and by redesignating subparagraph (D) as
subparagraph (C).
(6) Section 170(e)(4)(D) of such Code is amended by adding
''and'' at the end of clause (i), by striking clause (ii), and
by redesignating clause (iii) as clause (ii).
(7) Section 111(d) of such Code is amended to read as
follows:
''(d) Special Rules for Accumulated Earnings Tax.--In applying
subsection (a) for the purpose of determining the accumulated earnings
tax under section 531--
''(1) any excluded amount under subsection (a) allowed for
purposes of this subtitle (other than section 531) shall be
allowed whether or not such amount resulted in a reduction of
the tax under section 531 for the prior taxable year, and
''(2) where any excluded amount under subsection (a) was
not allowed as a deduction for the prior taxable year for
purposes of this subtitle other than section 531 but was
allowable for the same taxable year under section 531, then
such excluded amount shall be allowable if it did not result in
a reduction of the tax under section 531.''.
(8)(A) Section 316(b) of such Code is amended by striking
paragraph (2) and by redesignating paragraph (3) as paragraph
(2).
(B) Section 331(b) of such Code is amended by striking
''(other than a distribution referred to in paragraph (2)(B) of
section 316(b))''.
(9) Section 341(d) of such Code is amended--
(A) by striking ''section 544(a)'' and inserting
''section 465(f)'', and
(B) by inserting before the period at the end of
the next to the last sentence ''and such paragraph (2)
shall be applied by inserting 'by or for his partner'
after 'his family'''.
(10) Section 381(c) of such Code is amended by striking
paragraphs (14) and (17).
(11) Section 443(e) of such Code is amended by striking
paragraph (2) and by redesignating paragraphs (3), (4), and (5)
as paragraphs (2), (3), and (4), respectively.
(12) Section 447(g)(4)(A) of such Code is amended by
striking ''other than--'' and all that follows and inserting
''other than an S corporation.''
(13)(A) Section 465(a)(1)(B) of such Code is amended to
read as follows:
''(B) a C corporation which is closely held,''.
(B) Section 465(a)(3) of such Code is amended to read as
follows:
''(3) Closely held determination.--For purposes of
paragraph (1), a corporation is closely held if, at any time
during the last half of the taxable year, more than 50 percent
in value of its outstanding stock is owned, directly or
indirectly, by or for not more than 5 individuals. For purposes
of this paragraph, an organization described in section 401(a),
501(c)(17), or 509(a) or a portion of a trust permanently set
aside or to be used exclusively for the purposes described in
section 642(c) shall be considered an individual.''
(C) Section 465 of such Code is amended by adding at the
end the following new subsection:
''(f) Constructive Ownership Rules.--For purposes of subsection
(a)(3)--
''(1) Stock not owned by individual.--Stock owned, directly
or indirectly, by or for a corporation, partnership, estate, or
trust shall be considered as being owned proportionately by its
shareholders, partners, or beneficiaries.
''(2) Family ownership.--An individual shall be considered
as owning the stock owned, directly or indirectly, by or for
his family. For purposes of this paragraph, the family of an
individual includes only his brothers and sisters (whether by
the whole or half blood), spouse, ancestors, and lineal
descendants.
''(3) Options.--If any person has an option to acquire
stock, such stock shall be considered as owned by such person.
For purposes of this paragraph, an option to acquire such an
option, and each one of a series of such options, shall be
considered as an option to acquire such stock.
''(4) Application of family and option rules.--Paragraphs
(2) and (3) shall be applied if, but only if, the effect is to
make the corporation closely held under subsection (a)(3).
''(5) Constructive ownership as actual ownership.--Stock
constructively owned by a person by reason of the application
of paragraph (1) or (3), shall, for purposes of applying
paragraph (1) or (2), be treated as actually owned by such
person; but stock constructively owned by an individual by
reason of the application of paragraph (2) shall not be treated
as owned by him for purposes of again applying such paragraph
in order to make another the constructive owner of such stock.
''(6) Option rule in lieu of family rule.--If stock may be
considered as owned by an individual under either paragraph (2)
or (3) it shall be considered as owned by him under paragraph
(3).
''(7) Convertible securities.--Outstanding securities
convertible into stock (whether or not convertible during the
taxable year) shall be considered as outstanding stock if the
effect of the inclusion of all such securities is to make the
corporation closely held under subsection (a)(3). The
requirement under the preceding sentence that all convertible
securities must be included if any are to be included shall be
subject to the exception that, where some of the outstanding
securities are convertible only after a later date than in the
case of others, the class having the earlier conversion date
may be included although the others are not included, but no
convertible securities shall be included unless all outstanding
securities having a prior conversion date are also included.''
(D) Section 465(c)(7)(B) of such Code is amended by
striking clause (i) and by redesignating clauses (ii) and (iii)
as clauses (i) and (ii), respectively.
(E) Section 465(c)(7)(G) of such Code is amended to read as
follows:
''(G) Loss of 1 member of affiliated group may not
offset income of personal service corporation.--Nothing
in this paragraph shall permit any loss of a member of
an affiliated group to be used as an offset against the
income of any other member of such group which is a
personal service corporation (as defined in section
269A(b) but determined by substituting '5 percent' for
'10 percent' in section 269A(b)(2)).''
(14) Sections 508(d), 4947, and 4948(c)(4) of such Code are
each amended by striking ''545(b)(2),'' each place it appears.
(15) Section 532(b) of such Code is amended by striking
paragraph (1) and by redesignating paragraphs (2), (3), and (4)
as paragraphs (1), (2), and (3), respectively.
(16) Sections 535(b)(1) and 556(b)(1) of such Code are each
amended by striking ''section 541'' and inserting ''section 541
(as in effect before its repeal)''.
(17)(A) Section 553(a)(1) of such Code is amended by
striking ''section 543(d)'' and inserting ''subsection (c)''.
(B) Section 553 of such Code is amended by adding at the
end the following new subsection:
''(c) Active Business Computer Software Royalties.--
''(1) In general.--For purposes of subsection (a), the term
'active business computer software royalties' means any
royalties--
''(A) received by any corporation during the
taxable year in connection with the licensing of
computer software, and
''(B) with respect to which the requirements of
paragraphs (2), (3), (4), and (5) are met.
''(2) Royalties must be received by corporation actively
engaged in computer software business.--The requirements of
this paragraph are met if the royalties described in paragraph
(1)--
''(A) are received by a corporation engaged in the
active conduct of the trade or business of developing,
manufacturing, or producing computer software, and
''(B) are attributable to computer software which--
''(i) is developed, manufactured, or
produced by such corporation (or its
predecessor) in connection with the trade or
business described in subparagraph (A), or
''(ii) is directly related to such trade or
business.
''(3) Royalties must constitute at least 50 percent of
income.--The requirements of this paragraph are met if the
royalties described in paragraph (1) constitute at least 50
percent of the ordinary gross income of the corporation for the
taxable year.
''(4) Deductions under sections 162 and 174 relating to
royalties must equal or exceed 25 percent of ordinary gross
income.--
''(A) In general.--The requirements of this
paragraph are met if--
''(i) the sum of the deductions allowable
to the corporation under sections 162, 174, and
195 for the taxable year which are properly
allocable to the trade or business described in
paragraph (2) equals or exceeds 25 percent of
the ordinary gross income of such corporation
for such taxable year, or
''(ii) the average of such deductions for
the 5-taxable year period ending with such
taxable year equals or exceeds 25 percent of
the average ordinary gross income of such
corporation for such period.
If a corporation has not been in existence during the
5-taxable year period described in clause (ii), then
the period of existence of such corporation shall be
substituted for such 5-taxable year period.
''(B) Deductions allowable under section 162.--For
purposes of subparagraph (A), a deduction shall not be
treated as allowable under section 162 if it is
specifically allowable under another section.
''(C) Limitation on allowable deductions.--For
purposes of subparagraph (A), no deduction shall be
taken into account with respect to compensation for
personal services rendered by the 5 individual
shareholders holding the largest percentage (by value)
of the outstanding stock of the corporation. For
purposes of the preceding sentence individuals holding
less than 5 percent (by value) of the stock of such
corporation shall not be taken into account.''
(18) Section 561(a) of such Code is amended by striking
paragraph (3), by inserting ''and'' at the end of paragraph
(1), and by striking '', and'' at the end of paragraph (2) and
inserting a period.
(19) Section 562(b) of such Code is amended to read as
follows:
''(b) Distributions in Liquidation.--Except in the case of a
foreign personal holding company described in section 552--
''(1) in the case of amounts distributed in liquidation,
the part of such distribution which is properly chargeable to
earnings and profits accumulated after February 28, 1913, shall
be treated as a dividend for purposes of computing the
dividends paid deduction, and
''(2) in the case of a complete liquidation occurring
within 24 months after the adoption of a plan of liquidation,
any distribution within such period pursuant to such plan
shall, to the extent of the earnings and profits (computed
without regard to capital losses) of the corporation for the
taxable year in which such distribution is made, be treated as
a dividend for purposes of computing the dividends paid
deduction.
For purposes of paragraph (1), a liquidation includes a redemption of
stock to which section 302 applies. Except to the extent provided in
regulations, the preceding sentence shall not apply in the case of any
mere holding or investment company which is not a regulated investment
company.''
(20) Section 563 of such Code is amended by striking
subsection (b).
(21) Section 564 of such Code is hereby repealed.
(22) Section 631(c) of such Code is amended by striking
''or section 545(b)(5)''.
(23) Section 852(b)(1) of such Code is amended by striking
''which is a personal holding company (as defined in section
542) or''.
(24)(A) Section 856(h)(1) of such Code is amended to read
as follows:
''(1) In general.--For purposes of subsection (a)(6), a
corporation, trust, or association is closely held if the stock
ownership requirement of section 465(a)(3) is met.''
(B) Section 856(h)(3)(A)(i) of such Code is amended by
striking ''section 542(a)(2)'' and inserting ''section
465(a)(3)''.
(C) Paragraph (3) of section 856(h) of such Code is amended
by striking subparagraph (B) and by redesignating subparagraphs
(C) and (D) as subparagraphs (B) and (C), respectively.
(D) Subparagraph (C) of section 856(h)(3) of such Code, as
redesignating by the preceding subparagraph, is amended by
striking ''subparagraph (C)'' and inserting ''subparagraph
(B)''.
(25) The last sentence of section 882(c)(2) of such Code is
amended to read as follows: ''The preceding sentence shall not
be construed to deny the credit provided by section 33 for tax
withheld at source or the credit provided by section 34 for
certain uses of gasoline.''.
(26) Section 936(a)(3) of such Code is amended by striking
subparagraph (C), by inserting ''or'' at the end of
subparagraph (B), and by redesignating subparagraph (D) as
subparagraph (C).
(27) Section 992(d) of such Code is amended by striking
paragraph (2) and by redesignating succeeding paragraphs
accordingly.
(28) Section 992(e) of such Code is amended by striking
''and section 541 (relating to personal holding company tax)''.
(29) Section 1202(e)(8) of such Code is amended by striking
''section 543(d)(1)'' and inserting ''section 553(c)(1)''.
(30) Section 1362(d)(3)(C)(iii) of such Code is amended by
adding at the end the following new sentence: ''References to
section 542 in the preceding sentence shall be treated as
references to such section as in effect on the day before its
repeal.''
(31) Section 1504(c)(2)(B) of such Code is amended by
adding ''and'' at the end of clause (i), by striking clause
(ii), and by redesignating clause (iii) as clause (ii).
(32) Section 2057(e)(2)(C) of such Code is amended by
adding at the end the following new sentence: ''References to
sections 542 and 543 in the preceding sentence shall be treated
as references to such sections as in effect on the day before
their repeal.''
(33) Sections 6422 of such Code is amended by striking
paragraph (3) and by redesignating paragraphs (4) through (12)
and paragraphs (3) through (11), respectively.
(34) Section 6501 of such Code is amended by striking
subsection (f).
(35) Section 6503(k) of such Code is amended by striking
paragraph (1) and by redesignating paragraphs (2) through (5)
as paragraphs (1) through (4), respectively.
(36) Section 6515 of such Code is amended by striking
paragraph (1) and by redesignating paragraphs (2) through (6)
as paragraphs (1) through (5), respectively.
(37) Subsections (d)(1)(B) and (e)(2) of section 6662 of
such Code are each amended by striking ''or a personal holding
company (as defined in section 542)''.
(38) Section 6683 of such Code is hereby repealed.
(c) Clerical Amendments.--
(1) The table of parts for subchapter G of chapter 1 of
such Code is amended by striking the item relating to part II.
(2) The table of sections for part IV of such subchapter G
of such Code is amended by striking the item relating to
section 564.
(3) The table of sections for part I of subchapter B of
chapter 68 of such Code is amended by striking the item
relating to section 6683.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2004.
answer:
Personal Holding Company Tax Repeal Act of 2004 - Amends the Internal Revenue Code to repeal the tax on personal holding companies.