[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1877 Introduced in Senate (IS)]

103d CONGRESS
  2d Session
                                S. 1877

To amend the Internal Revenue Code of 1986 to clarify the deductibility 
 of interest and similar amounts attributable to deferred compensation.


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                   IN THE SENATE OF THE UNITED STATES

            February 28 (legislative day, February 22), 1994

   Mr. Pryor introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

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                                 A BILL


 
To amend the Internal Revenue Code of 1986 to clarify the deductibility 
 of interest and similar amounts attributable to deferred compensation.

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

SECTION 1. DEDUCTION OF INTEREST AND SIMILAR AMOUNTS ATTRIBUTABLE TO 
              DEFERRED COMPENSATION.

    (a) In General.--Section 404 of the Internal Revenue Code of 1986 
(relating to deductions for compensation under a deferred payment plan) 
is amended by adding at the end the following new subsection:
    ``(m) Deductibility of Interest and Similar Amounts Accrued With 
Respect To Deferred Compensation.--
            ``(1) In general.--For purposes of this chapter, the 
        determination of the taxable year in which a deduction is 
        allowed for amounts described in paragraph (2) shall be made 
        under this section and in the same manner as if such amounts 
        were compensation.
            ``(2) Applicable amounts.--An amount is described in this 
        paragraph if it is--
                    ``(A) interest or a similar amount based on the 
                time value of money, and
                    ``(B) an integral part of the method used to 
                calculate the total amount of deferred compensation to 
                be paid.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to amounts accruing in taxable years beginning before, on, or after the 
date of the enactment of this Act.

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