[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 404 Introduced in House (IH)]
103d CONGRESS
1st Session
H. R. 404
To repeal the provisions in the Internal Revenue Code of 1986 relating
to the inclusion of Social Security and certain railroad retirement
benefits in gross income to the extent such provisions do not apply to
nonresident aliens.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 5, 1993
Mr. Solomon introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To repeal the provisions in the Internal Revenue Code of 1986 relating
to the inclusion of Social Security and certain railroad retirement
benefits in gross income to the extent such provisions do not apply to
nonresident aliens.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. REPEAL OF PROVISION WHICH INCLUDES ONE-HALF OF SOCIAL
SECURITY AND RAILROAD RETIREMENT BENEFITS IN GROSS
INCOME.
(a) Repeal of Provision Including Benefits in Gross Income.--
Section 86 of the Internal Revenue Code of 1986 (relating to inclusion
of social security and tier 1 railroad retirement benefits in gross
income) is hereby repealed.
(b) Repeal of Return Requirement.--Section 6050F of such Code
(relating to returns relating to Social Security benefits) is hereby
repealed.
(c) Technical and Conforming Amendments.--
(1) Paragraph (3) of section 72(r) of such Code is amended
to read as follows:
``(3) Tier 1 railroad retirement benefit.--For purposes of
paragraph (1), the term `tier 1 railroad retirement benefit'
means a monthly benefit under section 3(a), 3(f)(3), 4(a), or
4(f) of the Railroad Retirement Act of 1974.''
(2) Paragraph (1) of section 6050G(a) of such Code is
amended by striking out ``86(d)(4)'' and inserting in lieu
thereof ``72(r)(3)''.
(3) The table of sections for part II of subchapter B of
chapter 1 of such Code is amended by striking out the item
relating to section 86.
(4) The table of sections for subpart B of part III of
subchapter A of chapter 61 of such Code is amended by striking
out the item relating to section 6050F.
(d) Effective Date.--The amendments made by this section shall
apply to benefits received after December 31, 1989, in taxable years
beginning after such date.
SEC. 2. TAXATION OF ONE-HALF OF SOCIAL SECURITY BENEFITS PAID TO
NONRESIDENT ALIENS CONTINUED.
(a) In General.--Section 871 of the Internal Revenue Code of 1986
(relating to tax on nonresident alien individuals) is amended by
redesignating subsection (j) as subsection (k) and by inserting after
subsection (i) the following new subsection:
``(j) Social Security Benefit Defined.--
``(1) In general.--For purposes of this section, the term
`social security benefit' means any amount received by the
taxpayer by reason of entitlement to--
``(A) a monthly benefit under title II of the
Social Security Act, or
``(B) a tier 1 railroad retirement benefit.
For purposes of the preceding sentence, the amount received by
any taxpayer shall be determined as if the Social Security Act
did not contain section 203(i) thereof.
``(2) Adjustment for repayments during year.--For purposes
of this section, the amount of Social Security benefits
received during any taxable year shall be reduced by any
repayment made by the taxpayer during the taxable year of a
Social Security benefit previously received by the taxpayer
(whether or not such benefit was received during the taxable
year).
``(3) Workmen's compensation benefits substituted for
social security benefits.--For purposes of this section, if, by
reason of section 224 of the Social Security Act (or by reason
of section 3(a)(1) of the Railroad Retirement Act of 1974), any
Social Security benefit is reduced by reason of the receipt of
a benefit under a workman's compensation act, the term `Social
Security benefit' includes that portion of such benefit
received under the workman's compensation act which equals such
reduction.
``(4) Tier 1 railroad retirement benefit.--For purposes of
paragraph (1), the term `tier 1 railroad retirement benefit'
has the meaning given to such term by section 72(r)(3).''
(b) Technical and Conforming Amendments.--
(1) Paragraph (8) of section 861(a) of such Code is amended
by striking out ``86(d)'' and inserting in lieu thereof
``871(j)''.
(2) Paragraph (3) of subsection (a) of such section 871 is
amended to read as follows:
``(3) Taxation of social security benefits.--For purposes
of this section and section 1441, one-half of any Social
Security benefit shall be included in gross income
(notwithstanding section 207 of the Social Security Act).''
(3) Paragraph (6) of section 6103(h) of such Code is
amended by striking out ``86(d)'' and inserting in lieu thereof
``871(j)''.
(4) Subsection (e) of section 121 of the Social Security
Amendments of 1983 is amended--
(A) in paragraph (1) by striking out ``sections 86
and'' and inserting in lieu thereof ``section'', and
(B) in paragraph (3)(B) by striking out
``86(d)(1)'' and inserting in lieu thereof
``871(j)(1)''.
(c) Effective Date.--The amendments made by this section shall
apply to benefits received during the first taxable year after
enactment of this Act.
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