[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5109 Introduced in House (IH)]

103d CONGRESS
  2d Session
                                H. R. 5109

 To amend the Internal Revenue Code of 1986 to provide that a taxpayer 
  may elect to include in income crop insurance proceeds and disaster 
payments in the year of the disaster or in the following year, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 27, 1994

  Mr. Minge 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 that a taxpayer 
  may elect to include in income crop insurance proceeds and disaster 
payments in the year of the disaster or in the following year, 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. SPECIAL RULE FOR CROP INSURANCE PROCEEDS AND DISASTER 
              PAYMENTS.

    (a) In General.--Section 451(d) of the Internal Revenue Code of 
1986 (relating to special rule for crop insurance proceeds and disaster 
payments) is amended to read as follows:
    ``(d) Special Rule for Crop Insurance Proceeds and Disaster 
Payments.--
            ``(1) General rule.--In the case of any payment described 
        in paragraph (2), a taxpayer reporting on the cash receipts and 
        disbursements method of accounting--
                    ``(A) may elect to treat any such payment received 
                in the taxable year of destruction or damage of crops 
                as having been received in the following taxable year 
                if the taxpayer establishes that, under the taxpayer's 
                practice, income from such crops involved would have 
                been reported in a following taxable year, or
                    ``(B) may elect to treat any such payment received 
                in a taxable year following the taxable year of the 
                destruction or damage of crops as having been received 
                in the taxable year of destruction or damage, if the 
                taxpayer establishes that, under the taxpayer's 
                practice, income from such crops involved would have 
                been reported in the taxable year of destruction or 
                damage.
            ``(2) Payments described.--For purposes of this subsection, 
        a payment is described in this paragraph if such payment--
                    ``(A) is insurance proceeds received on account of 
                destruction or damage to crops, or
                    ``(B) is disaster assistance received under any 
                Federal law as a result of--
                            ``(i) destruction or damage to crops caused 
                        by drought, flood, or other natural disaster, 
                        or
                            ``(ii) inability to plant crops because of 
                        such a disaster.''.
    (b) Effective Date.--The amendment made by subsection (a) applies 
to payments received after December 31, 1992, as a result of 
destruction or damage occurring after such date.

SEC. 2. MODIFICATION OF EXCEPTION FROM ACCRUAL METHOD OF ACCOUNTING FOR 
              FAMILY CORPORATIONS.

    (a) In General.--Clause (ii) of section 447(d)(2)(A) of the 
Internal Revenue Code of 1986 (relating to special rules for family 
corporations) is amended to read as follows:
                            ``(ii) by substituting for `$1,000,000'--
                                    ``(I) `$25,000,000' in the case of 
                                prior taxable years beginning after 
                                December 31, 1985, and before January 
                                1, 1994, and
                                    ``(II) `$17,000,000' in the case of 
                                prior taxable years beginning after 
                                December 31, 1993.''
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after December 31, 1994.
                                 <all>