[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1814 Introduced in Senate (IS)]

103d CONGRESS
  2d Session
                                S. 1814

 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.


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                   IN THE SENATE OF THE UNITED STATES

             February 1 (legislative day, January 25), 1994

 Mr. Daschle (for himself, Mr. Harkin, Mr. Grassley, Mr. Feingold, Mr. 
        Boren, Mr. Wellstone, Mr. Breaux, Mr. Kohl, Mr. Dole, Mr. 
        Conrad, Mr. Dorgan, and Mr. Durenberger) introduced the 
        following bill; which was read twice and referred to the 
        Committee on Finance

_______________________________________________________________________

                                 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.

    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 the following taxable year, or
                    ``(B) may elect to treat any such payment received 
                in the 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 this section applies to 
payments received after December 31, 1992, as a result of destruction 
or damage occurring after such date.

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