[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 739 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                 S. 739

 To amend the Internal Revenue Code of 1986 to simplify the limitation 
 on using last year's taxes to calculate an individual's estimated tax 
                               payments.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                April 2 (legislative day, March 3), 1993

  Mr. Bumpers 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 simplify the limitation 
 on using last year's taxes to calculate an individual's estimated tax 
                               payments.

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

SECTION 1. SIMPLIFICATION OF INDIVIDUAL ESTIMATED TAX SAFE HARBOR BASED 
              ON LAST YEAR'S TAX.

    (a) In General.--Paragraph (1) of section 6654(d) of the Internal 
Revenue Code of 1986 (relating to amount of required estimated tax 
installments) is amended by striking subparagraphs (C), (D), (E), and 
(F) and by inserting the following new subparagraph:
                    ``(C) Limitation on use of preceding year's tax.--
                            ``(i) In general.--In any case to which 
                        this subparagraph applies, clause (ii) of 
                        subparagraph (B) shall be applied by 
                        substituting `110 percent' for `100 percent'.
                            ``(ii) Cases to which this subparagraph 
                        applies.--This subparagraph shall apply if--
                                    ``(I) the adjusted gross income 
                                shown on the return of the individual 
                                for the preceding taxable year exceeds 
                                the amount of the adjusted gross income 
                                shown on the return of the individual 
                                for the second preceding taxable year 
                                by more than $40,000 ($20,000 in the 
                                case of a married individual filing a 
                                separate return for the preceding 
                                taxable year), and
                                    ``(II) the adjusted gross income 
                                shown on the return of the individual 
                                for the preceding taxable year exceeds 
                                $150,000 ($75,000 in the case of a 
                                married individual filing a separate 
                                return for the preceding taxable 
                                year).''.
    (b) Conforming Amendments.--
            (1) Subparagraph (A) of section 6654(j)(3) is amended by 
        striking ``and subsection (d)(1)(C)(iii) shall not apply'',
            (2) Paragraph (4) of section 6654(l) is amended by striking 
        ``paragraphs (1)(C)(iv) and (2)(B)(i) of subsection (d)'' and 
        inserting ``subsection (d)(2)(B)(i)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1993.

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