HR 6275
6-25-08, Bill Passed House 233-189
110th CONGRESS
2d Session
H. R. 6275
AN ACT
To amend the Internal Revenue Code of 1986 to provide individuals
temporary relief from the alternative minimum tax, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE, ETC.
(a) Short Title- This Act may be cited as the `Alternative Minimum Tax Relief
Act of 2008'.
(b) Reference- Except as otherwise expressly provided, whenever in this Act
an amendment or repeal is expressed in terms of an amendment to, or repeal
of, a section or other provision, the reference shall be considered to be
made to a section or other provision of the Internal Revenue Code of 1986.
(c) Table of Contents- The table of contents for this Act is as follows:
Sec. 1. Short title, etc.
TITLE I--INDIVIDUAL TAX RELIEF
Sec. 101. Extension of increased alternative minimum tax exemption amount.
Sec. 102. Extension of alternative minimum tax relief for nonrefundable
personal credits.
TITLE II--REVENUE PROVISIONS
Sec. 201. Income of partners for performing investment management services
treated as ordinary income received for performance of services.
Sec. 202. Limitation of deduction for income attributable to domestic production
of oil, gas, or primary products thereof.
Sec. 203. Limitation on treaty benefits for certain deductible payments.
Sec. 204. Returns relating to payments made in settlement of payment card
and third party network transactions.
Sec. 205. Application of continuous levy to property sold or leased to the
Federal Government.
Sec. 206. Time for payment of corporate estimated taxes.
TITLE I--INDIVIDUAL TAX RELIEF
SEC. 101. EXTENSION OF INCREASED ALTERNATIVE MINIMUM TAX EXEMPTION AMOUNT.
(a) In General- Paragraph (1) of section 55(d) is amended--
(1) by striking `($66,250 in the case of taxable years beginning in 2007)'
in subparagraph (A) and inserting `($69,950 in the case of taxable years
beginning in 2008)', and
(2) by striking `($44,350 in the case of taxable years beginning in 2007)'
in subparagraph (B) and inserting `($46,200 in the case of taxable years
beginning in 2008)'.
(b) Effective Date- The amendments made by this section shall apply to taxable
years beginning after December 31, 2007.
SEC. 102. EXTENSION OF ALTERNATIVE MINIMUM TAX RELIEF FOR NONREFUNDABLE
PERSONAL CREDITS.
(a) In General- Paragraph (2) of section 26(a) is amended--
(1) by striking `or 2007' and inserting `2007, or 2008', and
(2) by striking `2007' in the heading thereof and inserting `2008'.
(b) Effective Date- The amendments made by this section shall apply to taxable
years beginning after December 31, 2007.
TITLE II--REVENUE PROVISIONS
SEC. 201. INCOME OF PARTNERS FOR PERFORMING INVESTMENT MANAGEMENT SERVICES
TREATED AS ORDINARY INCOME RECEIVED FOR PERFORMANCE OF SERVICES.
(a) In General- Part I of subchapter K of chapter 1 is amended by adding at
the end the following new section:
`SEC. 710. SPECIAL RULES FOR PARTNERS PROVIDING INVESTMENT MANAGEMENT SERVICES
TO PARTNERSHIP.
`(a) Treatment of Distributive Share of Partnership Items- For purposes of
this title, in the case of an investment services partnership interest--
`(1) IN GENERAL- Notwithstanding section 702(b)--
`(A) any net income with respect to such interest for any partnership
taxable year shall be treated as ordinary income for the performance of
services, and
`(B) any net loss with respect to such interest for such year, to the
extent not disallowed under paragraph (2) for such year, shall be treated
as an ordinary loss.
All items of income, gain, deduction, and loss which are taken into account
in computing net income or net loss shall be treated as ordinary income
or ordinary loss (as the case may be).
`(2) TREATMENT OF LOSSES-
`(A) LIMITATION- Any net loss with respect to such interest shall be allowed
for any partnership taxable year only to the extent that such loss does
not exceed the excess (if any) of--
`(i) the aggregate net income with respect to such interest for all
prior partnership taxable years, over
`(ii) the aggregate net loss with respect to such interest not disallowed
under this subparagraph for all prior partnership taxable years.
`(B) CARRYFORWARD- Any net loss for any partnership taxable year which
is not allowed by reason of subparagraph (A) shall be treated as an item
of loss with respect to such partnership interest for the succeeding partnership
taxable year.
`(C) BASIS ADJUSTMENT- No adjustment to the basis of a partnership interest
shall be made on account of any net loss which is not allowed by reason
of subparagraph (A).
`(D) EXCEPTION FOR BASIS ATTRIBUTABLE TO PURCHASE OF A PARTNERSHIP INTEREST-
In the case of an investment services partnership interest acquired by
purchase, paragraph (1)(B) shall not apply to so much of any net loss
with respect to such interest for any taxable year as does not exceed
the excess of--
`(i) the basis of such interest immediately after such purchase, over
`(ii) the aggregate net loss with respect to such interest to which
paragraph (1)(B) did not apply by reason of this subparagraph for all
prior taxable years.
Any net loss to which paragraph (1)(B) does not apply by reason of this
subparagraph shall not be taken into account under subparagraph (A).
`(E) PRIOR PARTNERSHIP YEARS- Any reference in this paragraph to prior
partnership taxable years shall only include prior partnership taxable
years to which this section applies.
`(3) NET INCOME AND LOSS- For purposes of this section--
`(A) NET INCOME- The term `net income' means, with respect to any investment
services partnership interest, for any partnership taxable year, the excess
(if any) of--
`(i) all items of income and gain taken into account by the holder of
such interest under section 702 with respect to such interest for such
year, over
`(ii) all items of deduction and loss so taken into account.
`(B) NET LOSS- The term `net loss' means with respect to such interest
for such year, the excess (if any) of the amount described in subparagraph
(A)(ii) over the amount described in subparagraph (A)(i).
`(b) Dispositions of Partnership Interests-
`(1) GAIN- Any gain on the disposition of an investment services partnership
interest shall be treated as ordinary income for the performance of services.
`(2) LOSS- Any loss on the disposition of an investment services partnership
interest shall be treated as an ordinary loss to the extent of the excess
(if any) of--
`(A) the aggregate net income with respect to such interest for all partnership
taxable years, over
`(B) the aggregate net loss with respect to such interest allowed under
subsection (a)(2) for all partnership taxable years.
`(3) DISPOSITION OF PORTION OF INTEREST- In the case of any disposition
of an investment services partnership interest, the amount of net loss which
otherwise would have (but for subsection (a)(2)(C)) applied to reduce the
basis of such interest shall be disregarded for purposes of this section
for all succeeding partnership taxable years.
`(4) DISTRIBUTIONS OF PARTNERSHIP PROPERTY- In the case of any distribution
of property by a partnership with respect to any investment services partnership
interest held by a partner--
`(A) the excess (if any) of--
`(i) the fair market value of such property at the time of such distribution,
over
`(ii) the adjusted basis of such property in the hands of the partnership,
shall be taken into account as an increase in such partner's distributive
share of the taxable income of the partnership (except to the extent such
excess is otherwise taken into account in determining the taxable income
of the partnership),
`(B) such property shall be treated for purposes of subpart B of part
II as money distributed to such partner in an amount equal to such fair
market value, and
`(C) the basis of such property in the hands of such partner shall be
such fair market value.
Subsection (b) of section 734 shall be applied without regard to the preceding
sentence.
`(5) APPLICATION OF SECTION 751- In applying section 751(a), an investment
services partnership interest shall be treated as an inventory item.
`(c) Investment Services Partnership Interest- For purposes of this section--
`(1) IN GENERAL- The term `investment services partnership interest' means
any interest in a partnership which is held by any person if such person
provides (directly or indirectly) a substantial quantity of any of the following
services with respect to the assets of the partnership in the conduct of
the trade or business of providing such services:
`(A) Advising as to the advisability of investing in, purchasing, or selling
any specified asset.
`(B) Managing, acquiring, or disposing of any specified asset.
`(C) Arranging financing with respect to acquiring specified assets.
`(D) Any activity in support of any service described in subparagraphs
(A) through (C).
For purposes of this paragraph, the term `specified asset' means securities
(as defined in section 475(c)(2) without regard to the last sentence thereof),
real estate, commodities (as defined in section 475(e)(2))), or options
or derivative contracts with respect to securities (as so defined), real
estate, or commodities (as so defined).
`(2) EXCEPTION FOR CERTAIN CAPITAL INTERESTS-
`(i) a portion of an investment services partnership interest is acquired
on account of a contribution of invested capital, and
`(ii) the partnership makes a reasonable allocation of partnership items
between the portion of the distributive share that is with respect to
invested capital and the portion of such distributive share that is
not with respect to invested capital,
then subsection (a) shall not apply to the portion of the distributive
share that is with respect to invested capital. An allocation will not
be treated as reasonable for purposes of this subparagraph if such allocation
would result in the partnership allocating a greater portion of income
to invested capital than any other partner not providing services would
have been allocated with respect to the same amount of invested capital.
`(B) SPECIAL RULE FOR DISPOSITIONS- In any case to which subparagraph
(A) applies, subsection (b) shall not apply to any gain or loss allocable
to invested capital. The portion of any gain or loss attributable to invested
capital is the proportion of such gain or loss which is based on the distributive
share of gain or loss that would have been allocable to invested capital
under subparagraph (A) if the partnership sold all of its assets immediately
before the disposition.
`(C) INVESTED CAPITAL- For purposes of this paragraph, the term `invested
capital' means, the fair market value at the time of contribution of any
money or other property contributed to the partnership.
`(D) TREATMENT OF CERTAIN LOANS-
`(i) PROCEEDS OF PARTNERSHIP LOANS NOT TREATED AS INVESTED CAPITAL OF
SERVICE PROVIDING PARTNERS- For purposes of this paragraph, an investment
services partnership interest shall not be treated as acquired on account
of a contribution of invested capital to the extent that such capital
is attributable to the proceeds of any loan or other advance made or
guaranteed, directly or indirectly, by any partner or the partnership.
`(ii) LOANS FROM NONSERVICE PROVIDING PARTNERS TO THE PARTNERSHIP TREATED
AS INVESTED CAPITAL- For purposes of this paragraph, any loan or other
advance to the partnership made or guaranteed, directly or indirectly,
by a partner not providing services to the partnership shall be treated
as invested capital of such partner and amounts of income and loss treated
as allocable to invested capital shall be adjusted accordingly.
`(d) Other Income and Gain in Connection With Investment Management Services-
`(A) a person performs (directly or indirectly) investment management
services for any entity,
`(B) such person holds a disqualified interest with respect to such entity,
and
`(C) the value of such interest (or payments thereunder) is substantially
related to the amount of income or gain (whether or not realized) from
the assets with respect to which the investment management services are
performed,
any income or gain with respect to such interest shall be treated as ordinary
income for the performance of services. Rules similar to the rules of subsection
(c)(2) shall apply where such interest was acquired on account of invested
capital in such entity.
`(2) DEFINITIONS- For purposes of this subsection--
`(A) DISQUALIFIED INTEREST- The term `disqualified interest' means, with
respect to any entity--
`(i) any interest in such entity other than indebtedness,
`(ii) convertible or contingent debt of such entity,
`(iii) any option or other right to acquire property described in clause
(i) or (ii), and
`(iv) any derivative instrument entered into (directly or indirectly)
with such entity or any investor in such entity.
Such term shall not include a partnership interest and shall not include
stock in a taxable corporation.
`(B) TAXABLE CORPORATION- The term `taxable corporation' means--
`(i) a domestic C corporation, or
`(ii) a foreign corporation subject to a comprehensive foreign income
tax.
`(C) INVESTMENT MANAGEMENT SERVICES- The term `investment management services'
means a substantial quantity of any of the services described in subsection
(c)(1) which are provided in the conduct of the trade or business of providing
such services.
`(D) COMPREHENSIVE FOREIGN INCOME TAX- The term `comprehensive foreign
income tax' means, with respect to any foreign corporation, the income
tax of a foreign country if--
`(i) such corporation is eligible for the benefits of a comprehensive
income tax treaty between such foreign country and the United States,
or
`(ii) such corporation demonstrates to the satisfaction of the Secretary
that such foreign country has a comprehensive income tax.
`(e) Regulations- The Secretary shall prescribe such regulations as are necessary
or appropriate to carry out the purposes of this section, including regulations
to--
`(1) prevent the avoidance of the purposes of this section, and
`(2) coordinate this section with the other provisions of this subchapter.
`(f) Cross Reference- For 40 percent no fault penalty on certain underpayments
due to the avoidance of this section, see section 6662.'.
(b) Application to Real Estate Investment Trusts-
(1) IN GENERAL- Subsection (c) of section 856 is amended by adding at the
end the following new paragraph:
`(9) EXCEPTION FROM RECHARACTERIZATION OF INCOME FROM INVESTMENT SERVICES
PARTNERSHIP INTERESTS-
`(A) IN GENERAL- Paragraphs (2), (3), and (4) shall be applied without
regard to section 710 (relating to special rules for partners providing
investment management services to partnership).
`(B) SPECIAL RULE FOR PARTNERSHIPS OWNED BY REITS- Section 7704 shall
be applied without regard to section 710 in the case of a partnership
which meets each of the following requirements:
`(i) Such partnership is treated as publicly traded under section 7704
solely by reason of interests in such partnership being convertible
into interests in a real estate investment trust which is publicly traded.
`(ii) 50 percent or more of the capital and profits interests of such
partnership are owned, directly or indirectly, at all times during the
taxable year by such real estate investment trust (determined with the
application of section 267(c)).
`(iii) Such partnership meets the requirements of paragraphs (2), (3),
and (4) (applied without regard to section 710).'.
(2) CONFORMING AMENDMENT- Paragraph (4) of section 7704(d) is amended by
inserting `(determined without regard to section 856(c)(8))' after `856(c)(2)'.
(c) Imposition of Penalty on Underpayments-
(1) IN GENERAL- Subsection (b) of section 6662 is amended by inserting after
paragraph (5) the following new paragraph:
`(6) The application of subsection (d) of section 710 or the regulations
prescribed under section 710(e) to prevent the avoidance of the purposes
of section 710.'.
(A) IN GENERAL- Section 6662 is amended by adding at the end the following
new subsection:
`(i) Increase in Penalty in Case of Property Transferred for Investment Management
Services- In the case of any portion of an underpayment to which this section
applies by reason of subsection (b)(6), subsection (a) shall be applied with
respect to such portion by substituting `40 percent' for `20 percent'.'.
(B) CONFORMING AMENDMENTS- Subparagraph (B) of section 6662A(e)(2) is
amended--
(i) by striking `section 6662(h)' and inserting `subsection (h) or (i)
of section 6662', and
(ii) by striking `GROSS VALUATION MISSTATEMENT PENALTY' in the heading
and inserting `CERTAIN INCREASED UNDERPAYMENT PENALTIES'.
(3) REASONABLE CAUSE EXCEPTION NOT APPLICABLE- Subsection (c) of section
6664 is amended--
(A) by redesignating paragraphs (2) and (3) as paragraphs (3) and (4),
respectively,
(B) by striking `paragraph (2)' in paragraph (4), as so redesignated,
and inserting `paragraph (3)', and
(C) by inserting after paragraph (1) the following new paragraph:
`(2) EXCEPTION- Paragraph (1) shall not apply to any portion of an underpayment
to which this section applies by reason of subsection (b)(6).'.
(d) Conforming Amendments-
(1) Subsection (d) of section 731 is amended by inserting `section 710(b)(4)
(relating to distributions of partnership property),' before `section 736'.
(2) Section 741 is amended by inserting `or section 710 (relating to special
rules for partners providing investment management services to partnership)'
before the period at the end.
(3) Paragraph (13) of section 1402(a) is amended--
(A) by striking `other than guaranteed' and inserting `other than--
(B) by striking the semicolon at the end and inserting `, and', and
(C) by adding at the end the following new subparagraph:
`(B) any income treated as ordinary income under section 710 received
by an individual who provides investment management services (as defined
in section 710(d)(2));'.
(4) Paragraph (12) of section 211(a) of the Social Security Act is amended--
(A) by striking `other than guaranteed' and inserting `other than--
(B) by striking the semicolon at the end and inserting `, and', and
(C) by adding at the end the following new subparagraph:
`(B) any income treated as ordinary income under section 710 of the Internal
Revenue Code of 1986 received by an individual who provides investment
management services (as defined in section 710(d)(2) of such Code);'.
(5) The table of sections for part I of subchapter K of chapter 1 is amended
by adding at the end the following new item:
`Sec. 710. Special rules for partners providing investment management services
to partnership.'.
(1) IN GENERAL- Except as otherwise provided in this subsection, the amendments
made by this section shall apply to taxable years ending after June 18,
2008.
(2) PARTNERSHIP TAXABLE YEARS WHICH INCLUDE EFFECTIVE DATE- In applying
section 710(a) of the Internal Revenue Code of 1986 (as added by this section)
in the case of any partnership taxable year which includes June 18, 2008,
the amount of the net income referred to in such section shall be treated
as being the lesser of the net income for the entire partnership taxable
year or the net income determined by only taking into account items attributable
to the portion of the partnership taxable year which is after such date.
(3) DISPOSITIONS OF PARTNERSHIP INTERESTS- Section 710(b) of the Internal
Revenue Code of 1986 (as added by this section) shall apply to dispositions
and distributions after June 18, 2008.
(4) OTHER INCOME AND GAIN IN CONNECTION WITH INVESTMENT MANAGEMENT SERVICES-
Section 710(d) of such Code (as added by this section) shall take effect
on June 18, 2008.
(5) PUBLICLY TRADED PARTNERSHIPS- For purposes of applying section 7704,
the amendments made by this section shall apply to taxable years beginning
after December 31, 2010.
SEC. 202. LIMITATION OF DEDUCTION FOR INCOME ATTRIBUTABLE TO DOMESTIC PRODUCTION
OF OIL, GAS, OR PRIMARY PRODUCTS THEREOF.
(a) Denial of Deduction for Major Integrated Oil Companies for Income Attributable
to Domestic Production of Oil, Gas, or Primary Products Thereof-
(1) IN GENERAL- Subparagraph (B) of section 199(c)(4) (relating to exceptions)
is amended by striking `or' at the end of clause (ii), by striking the period
at the end of clause (iii) and inserting `, or', and by inserting after
clause (iii) the following new clause:
`(iv) in the case of any major integrated oil company (as defined in
section 167(h)(5)(B)), the production, refining, processing, transportation,
or distribution of oil, gas, or any primary product thereof during any
taxable year described in section 167(h)(5)(B).'.
(2) PRIMARY PRODUCT- Section 199(c)(4)(B) is amended by adding at the end
the following flush sentence:
`For purposes of clause (iv), the term `primary product' has the same
meaning as when used in section 927(a)(2)(C), as in effect before its
repeal.'.
(b) Limitation on Oil Related Qualified Production Activities Income for Taxpayers
Other Than Major Integrated Oil Companies-
(1) IN GENERAL- Section 199(d) is amended by redesignating paragraph (9)
as paragraph (10) and by inserting after paragraph (8) the following new
paragraph:
`(9) SPECIAL RULE FOR TAXPAYERS WITH OIL RELATED QUALIFIED PRODUCTION ACTIVITIES
INCOME-
`(A) IN GENERAL- If a taxpayer (other than a major integrated oil company
(as defined in section 167(h)(5)(B))) has oil related qualified production
activities income for any taxable year beginning after 2009, the amount
of the deduction under subsection (a) shall be reduced by 3 percent of
the least of--
`(i) the oil related qualified production activities income of the taxpayer
for the taxable year,
`(ii) the qualified production activities income of the taxpayer for
the taxable year, or
`(iii) taxable income (determined without regard to this section).
`(B) OIL RELATED QUALIFIED PRODUCTION ACTIVITIES INCOME- The term `oil
related qualified production activities income' means for any taxable
year the qualified production activities income which is attributable
to the production, refining, processing, transportation, or distribution
of oil, gas, or any primary product thereof during such taxable year.'.
(2) CONFORMING AMENDMENT- Section 199(d)(2) (relating to application to
individuals) is amended by striking `subsection (a)(1)(B)' and inserting
`subsections (a)(1)(B) and (d)(9)(A)(iii)'.
(c) Effective Date- The amendments made by this section shall apply to taxable
years beginning after December 31, 2008.
SEC. 203. LIMITATION ON TREATY BENEFITS FOR CERTAIN DEDUCTIBLE PAYMENTS.
(a) In General- Section 894 (relating to income affected by treaty) is amended
by adding at the end the following new subsection:
`(d) Limitation on Treaty Benefits for Certain Deductible Payments-
`(1) IN GENERAL- In the case of any deductible related-party payment, any
withholding tax imposed under chapter 3 (and any tax imposed under subpart
A or B of this part) with respect to such payment may not be reduced under
any treaty of the United States unless any such withholding tax would be
reduced under a treaty of the United States if such payment were made directly
to the foreign parent corporation.
`(2) DEDUCTIBLE RELATED-PARTY PAYMENT- For purposes of this subsection,
the term `deductible related-party payment' means any payment made, directly
or indirectly, by any person to any other person if the payment is allowable
as a deduction under this chapter and both persons are members of the same
foreign controlled group of entities.
`(3) FOREIGN CONTROLLED GROUP OF ENTITIES- For purposes of this subsection--
`(A) IN GENERAL- The term `foreign controlled group of entities' means
a controlled group of entities the common parent of which is a foreign
corporation.
`(B) CONTROLLED GROUP OF ENTITIES- The term `controlled group of entities'
means a controlled group of corporations as defined in section 1563(a)(1),
except that--
`(i) `more than 50 percent' shall be substituted for `at least 80 percent'
each place it appears therein, and
`(ii) the determination shall be made without regard to subsections
(a)(4) and (b)(2) of section 1563.
A partnership or any other entity (other than a corporation) shall be
treated as a member of a controlled group of entities if such entity is
controlled (within the meaning of section 954(d)(3)) by members of such
group (including any entity treated as a member of such group by reason
of this sentence).
`(4) FOREIGN PARENT CORPORATION- For purposes of this subsection, the term
`foreign parent corporation' means, with respect to any deductible related-party
payment, the common parent of the foreign controlled group of entities referred
to in paragraph (3)(A).
`(5) REGULATIONS- The Secretary may prescribe such regulations or other
guidance as are necessary or appropriate to carry out the purposes of this
subsection, including regulations or other guidance which provide for--
`(A) the treatment of two or more persons as members of a foreign controlled
group of entities if such persons would be the common parent of such group
if treated as one corporation, and
`(B) the treatment of any member of a foreign controlled group of entities
as the common parent of such group if such treatment is appropriate taking
into account the economic relationships among such entities.'.
(b) Effective Date- The amendment made by this section shall apply to payments
made after the date of the enactment of this Act.
SEC. 204. RETURNS RELATING TO PAYMENTS MADE IN SETTLEMENT OF PAYMENT CARD
AND THIRD PARTY NETWORK TRANSACTIONS.
(a) In General- Subpart B of part III of subchapter A of chapter 61 is amended
by adding at the end the following new section:
`SEC. 6050W. RETURNS RELATING TO PAYMENTS MADE IN SETTLEMENT OF PAYMENT
CARD AND THIRD PARTY NETWORK TRANSACTIONS.
`(a) In General- Each payment settlement entity shall make a return for each
calendar year setting forth--
`(1) the name, address, and TIN of each participating payee to whom one
or more payments in settlement of reportable payment transactions are made,
and
`(2) the gross amount of the reportable payment transactions with respect
to each such participating payee.
Such return shall be made at such time and in such form and manner as the
Secretary may require by regulations.
`(b) Payment Settlement Entity- For purposes of this section--
`(1) IN GENERAL- The term `payment settlement entity' means--
`(A) in the case of a payment card transaction, the merchant acquiring
bank, and
`(B) in the case of a third party network transaction, the third party
settlement organization.
`(2) MERCHANT ACQUIRING BANK- The term `merchant acquiring bank' means the
bank or other organization which has the contractual obligation to make
payment to participating payees in settlement of payment card transactions.
`(3) THIRD PARTY SETTLEMENT ORGANIZATION- The term `third party settlement
organization' means the central organization which has the contractual obligation
to make payment to participating payees of third party network transactions.
`(4) SPECIAL RULES RELATED TO INTERMEDIARIES- For purposes of this section--
`(A) AGGREGATED PAYEES- In any case where reportable payment transactions
of more than one participating payee are settled through an intermediary--
`(i) such intermediary shall be treated as the participating payee for
purposes of determining the reporting obligations of the payment settlement
entity with respect to such transactions, and
`(ii) such intermediary shall be treated as the payment settlement entity
with respect to the settlement of such transactions with the participating
payees.
`(B) ELECTRONIC PAYMENT FACILITATORS- In any case where an electronic
payment facilitator or other third party makes payments in settlement
of reportable payment transactions on behalf of the payment settlement
entity, the return under subsection (a) shall be made by such electronic
payment facilitator or other third party in lieu of the payment settlement
entity.
`(c) Reportable Payment Transaction- For purposes of this section--
`(1) IN GENERAL- The term `reportable payment transaction' means any payment
card transaction and any third party network transaction.
`(2) PAYMENT CARD TRANSACTION- The term `payment card transaction' means
any transaction in which a payment card is accepted as payment.
`(3) THIRD PARTY NETWORK TRANSACTION- The term `third party network transaction'
means any transaction which is settled through a third party payment network.
`(d) Other Definitions- For purposes of this section--
`(1) PARTICIPATING PAYEE-
`(A) IN GENERAL- The term `participating payee' means--
`(i) in the case of a payment card transaction, any person who accepts
a payment card as payment, and
`(ii) in the case of a third party network transaction, any person who
accepts payment from a third party settlement organization in settlement
of such transaction.
`(B) EXCLUSION OF FOREIGN PERSONS- Except as provided by the Secretary
in regulations or other guidance, such term shall not include any person
with a foreign address.
`(C) INCLUSION OF GOVERNMENTAL UNITS- The term `person' includes any governmental
unit (and any agency or instrumentality thereof).
`(2) PAYMENT CARD- The term `payment card' means any card which is issued
pursuant to an agreement or arrangement which provides for--
`(A) one or more issuers of such cards,
`(B) a network of persons unrelated to each other, and to the issuer,
who agree to accept such cards as payment, and
`(C) standards and mechanisms for settling the transactions between the
merchant acquiring banks and the persons who agree to accept such cards
as payment.
The acceptance as payment of any account number or other indicia associated
with a payment card shall be treated for purposes of this section in the
same manner as accepting such payment card as payment.
`(3) THIRD PARTY PAYMENT NETWORK- The term `third party payment network'
means any agreement or arrangement--
`(A) which involves the establishment of accounts with a central organization
for the purpose of settling transactions between persons who establish
such accounts,
`(B) which provides for standards and mechanisms for settling such transactions,
`(C) which involves a substantial number of persons unrelated to such
central organization who provide goods or services and who have agreed
to settle transactions for the provision of such goods or services pursuant
to such agreement or arrangement, and
`(D) which guarantees persons providing goods or services pursuant to
such agreement or arrangement that such persons will be paid for providing
such goods or services.
Such term shall not include any agreement or arrangement which provides
for the issuance of payment cards.
`(e) Exception for De Minimis Payments by Third Party Settlement Organizations-
A third party settlement organization shall be required to report any information
under subsection (a) with respect to third party network transactions of any
participating payee only if--
`(1) the amount which would otherwise be reported under subsection (a)(2)
with respect to such transactions exceeds $10,000, and
`(2) the aggregate number of such transactions exceeds 200.
`(f) Statements To Be Furnished to Persons With Respect to Whom Information
Is Required- Every person required to make a return under subsection (a) shall
furnish to each person with respect to whom such a return is required a written
statement showing--
`(1) the name, address, and phone number of the information contact of the
person required to make such return, and
`(2) the gross amount of the reportable payment transactions with respect
to the person required to be shown on the return.
The written statement required under the preceding sentence shall be furnished
to the person on or before January 31 of the year following the calendar year
for which the return under subsection (a) was required to be made. Such statement
may be furnished electronically.
`(g) Regulations- The Secretary may prescribe such regulations or other guidance
as may be necessary or appropriate to carry out this section, including rules
to prevent the reporting of the same transaction more than once.'.
(b) Penalty for Failure To File-
(1) RETURN- Subparagraph (B) of section 6724(d)(1) is amended--
(A) by striking `and' at the end of clause (xx),
(B) by redesignating the clause (xix) that follows clause (xx) as clause
(xxi),
(C) by striking `and' at the end of clause (xxi), as redesignated by subparagraph
(B) and inserting `or', and
(D) by adding at the end the following:
`(xxii) section 6050W (relating to returns to payments made in settlement
of payment card transactions), and'.
(2) STATEMENT- Paragraph (2) of section 6724(d) is amended by inserting
a comma at the end of subparagraph (BB), by striking the period at the end
of the subparagraph (CC) and inserting `, or', and by inserting after subparagraph
(CC) the following:
`(DD) section 6050W(c) (relating to returns relating to payments made
in settlement of payment card transactions).'.
(c) Application of Backup Withholding- Paragraph (3) of section 3406(b) is
amended by striking `or' at the end of subparagraph (D), by striking the period
at the end of subparagraph (E) and inserting `, or', and by adding at the
end the following new subparagraph:
`(F) section 6050W (relating to returns relating to payments made in settlement
of payment card transactions).'.
(d) Clerical Amendment- The table of sections for subpart B of part III of
subchapter A of chapter 61 is amended by inserting after the item relating
to section 6050V the following:
`Sec. 6050W. Returns relating to payments made in settlement of payment
card and third party network transactions.'.
(1) IN GENERAL- Except as otherwise provided in this subsection, the amendments
made by this section shall apply to returns for calendar years beginning
after December 31, 2010.
(2) APPLICATION OF BACKUP WITHHOLDING-
(A) IN GENERAL- The amendment made by subsection (c) shall apply to amounts
paid after December 31, 2011.
(B) ELIGIBILITY FOR TIN MATCHING PROGRAM- Solely for purposes of carrying
out any TIN matching program established by the Secretary under section
3406(i) of the Internal Revenue Code of 1986--
(i) the amendments made this section shall be treated as taking effect
on the date of the enactment of this Act, and
(ii) each person responsible for setting the standards and mechanisms
referred to in section 6050W(d)(2)(C) of such Code, as added by this
section, for settling transactions involving payment cards shall be
treated in the same manner as a payment settlement entity.
SEC. 205. APPLICATION OF CONTINUOUS LEVY TO PROPERTY SOLD OR LEASED TO THE
FEDERAL GOVERNMENT.
(a) In General- Paragraph (3) of section 6331(h) is amended by striking `goods'
and inserting `property'.
(b) Effective Date- The amendment made by this section shall apply to levies
approved after the date of the enactment of this Act.
SEC. 206. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.
(a) Repeal of Adjustment for 2012- Subparagraph (B) of section 401(1) of the
Tax Increase Prevention and Reconciliation Act of 2005 is amended by striking
the percentage contained therein and inserting `100 percent'.
(b) Modification of Adjustment for 2013- The percentage under subparagraph
(C) of section 401(1) of the Tax Increase Prevention and Reconciliation Act
of 2005 in effect on the date of the enactment of this Act is increased by
59.5 percentage points.
Passed the House of Representatives June 25, 2008.
Attest:
Clerk.
110th CONGRESS
2d Session
H. R. 6275
AN ACT
To amend the Internal Revenue Code of 1986 to provide individuals temporary
relief from the alternative minimum tax, and for other purposes.
END
