[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4019 Introduced in House (IH)]

103d CONGRESS
  2d Session
                                H. R. 4019

To amend the Internal Revenue Code of 1986 to permit certain severance 
        payments to be included in income over a 4-year period.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 11, 1994

 Mr. Hinchey 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 permit certain severance 
        payments to be included in income over a 4-year period.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Tax Fairness for Displaced Workers 
Act''.

SEC. 2. ELECTION TO INCLUDE CERTAIN SEVERANCE PAYMENTS IN INCOME OVER 
              4-YEAR PERIOD.

    (a) General Rule.--Section 451 of the Internal Revenue Code of 1986 
(relating to general rule for taxable year of inclusion) is amended by 
adding at the end the following new subsection:
    ``(h) Election To Include Certain Severance Payments in Income Over 
4-Year Period.--
            ``(1) In general.--If an individual makes an election under 
        this paragraph with respect to any qualified severance payment, 
        such payment shall be included in gross income ratably over the 
        4-taxable-year period beginning with the taxable year in which 
        such payment is received.
            ``(2) Qualified separation payment.--For purposes of this 
        subsection, the term `qualified separation payment' means any 
        payment received by an individual if--
                    ``(A) such payment was paid by such individual's 
                employer on account of such individual's separation 
                from employment, and
                    ``(B) such separation was in connection with a 
                reduction in the work force of the employer.
        The aggregate amount taken into account under the preceding 
        sentence with respect to any separation from employment shall 
        not exceed $50,000.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to payments received on or after January 1, 1993.

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