[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3033 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 3033

  Relating to the valuation of stock received by certain employees in 
       connection with the performance of services as employees.


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                    IN THE HOUSE OF REPRESENTATIVES

                           September 9, 1993

Mr. Hall of Texas introduced the following bill; which was referred to 
                    the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
  Relating to the valuation of stock received by certain employees in 
       connection with the performance of services as employees.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. VALUATION OF CERTAIN STOCK.

    (a) General Rule.--If--
            (1) stock in a corporation was on March 24, 1981, 
        transferred by such corporation to an employee of such 
        corporation,
            (2) such transfer was in connection with an initial public 
        offering of stock in such corporation,
            (3) the employee receiving such stock was subject to 
        restrictions as to its transferability which were imposed in 
        connection with such public offering, and
            (4) on April 15, 1982, the fair market value of such stock 
        was less than 50 percent of its fair market value on March 24, 
        1981,
the amount includable in the gross income of the employee under section 
83 of the Internal Revenue Code of 1986 by reason of the receipt of 
such stock shall be determined by using its fair market value on April 
15, 1982 (or, if earlier, the date on which the employee disposed of 
such stock).
    (b) Statute of Limitations.--
            (1) Overpayments.--If refund or credit of any overpayment 
        of tax resulting from the application of subsection (a) is 
        prevented at any time before the close of the 1-year period 
        beginning on the date of the enactment of this Act by the 
        operation of any law or rule of law (including res judicata), 
        refund or credit of such overpayment (to the extent 
        attributable to the application of subsection (a)) shall, 
        nevertheless, be made or allowed if claim therefor is filed 
        before the close of such 1-year period.
            (2) Deficiencies.--If the assessment of any deficiency of 
        tax resulting from the application of subsection (a) is 
        prevented at any time before the close of the 1-year period 
        referred to in paragraph (1) by the operation of any law or 
        rule of law (including res judicata), assessment of such 
        deficiency (to the extent attributable to the application of 
        subsection (a)) may, nevertheless, be made within such 1-year 
        period.
    (c) Other Special Rules.--
            (1) Waiver of penalties where stock sold.--If any stock to 
        which subsection (a) applies was sold by the employee before 
        the date of the enactment of this Act, no penalty shall be 
        imposed under subchapter A of chapter 68 of such Code by reason 
        of any underpayment of tax to the extent attributable to the 
        application of subsection (a).
            (2) Secretary to open closing agreements.--Notwithstanding 
        section 7121(b) of such Code, the Secretary of the Treasury or 
        his delegate shall, at the request of any individual to whom 
        subsection (a) applies, reopen any agreement referred to in 
        section 7121(a) of such Code entered into by such individual 
        for purposes of giving effect to this section.
    (d) Effective Date.--This section shall apply to taxable years 
ending after March 24, 1981.

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