[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6275 Introduced in House (IH)]
110th CONGRESS
2d Session
H. R. 6275
To amend the Internal Revenue Code of 1986 to provide individuals
temporary relief from the alternative minimum tax, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 17, 2008
Mr. Rangel (for himself, Mr. McDermott, Mr. Lewis of Georgia, Mr. Neal
of Massachusetts, Mr. Pomeroy, Mrs. Jones of Ohio, Mr. Blumenauer, Ms.
Berkley, Mr. Crowley, Mr. Van Hollen, Mr. Meek of Florida, Mr. Levin,
and Mr. Larson of Connecticut) introduced the following bill; which was
referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
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.--
``(A) In general.--If--
``(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.--
``(1) In general.--If--
``(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 (as defined in
section 457A(d)(4)).
``(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.
``(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:
``(8) 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.''.
(2) Amount of penalty.--
(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--
``(A) guaranteed'',
(B) by striking the semi-colon 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--
``(A) guaranteed'',
(B) by striking the semi-colon 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.''.
(e) Effective Date.--
(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
transactions are made, and
``(2) the gross amount of the reportable 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 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
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 Transaction.--For purposes of this section--
``(1) In general.--The term `reportable 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.--To the extent
provided by the Secretary in regulations or other
guidance, such term shall not include any foreign
person.
``(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 not be
required to report any information under subsection (a) with respect to
third party network transactions of any participating payee if the
amount which would otherwise be reported under subsection (a)(2) with
respect to such transactions does not exceed $10,000 and the aggregate
number of such transactions does not exceed 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 aggregate amount of payments made 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.
``(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 ``or'' 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 striking ``or'' 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 transactions.''.
(e) Effective Date.--
(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.--The amendment made
by subsection (c) shall apply to amounts paid after December
31, 2011.
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.
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