[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2079 Introduced in House (IH)]

  1st Session
                                H. R. 2079

     To provide amnesty from criminal and civil tax penalties for 
individuals who, within the 6-month amnesty period, notify the Internal 
 Revenue Service of previous non-payments or underpayments of Federal 
             income tax and pay such underpayments in full.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 20, 1995

  Mr. Frisa introduced the following bill; which was referred to the 
 Committee on Ways and Means, and in addition to the Committee on the 
 Judiciary, for a period to be subsequently determined by the Speaker, 
 in each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
     To provide amnesty from criminal and civil tax penalties for 
individuals who, within the 6-month amnesty period, notify the Internal 
 Revenue Service of previous non-payments or underpayments of Federal 
             income tax and pay such underpayments in full.
    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. WAIVER OF CRIMINAL AND CIVIL PENALTIES.

    (a) General Rule.--Notwithstanding any other provision of law, in 
the case of any underpayment of Federal income tax by any individual 
for any taxable year, such individual shall not be liable for any 
criminal or civil penalty or addition to tax with respect to such 
underpayment if--
            (1) during the amnesty period--
                    (A) such individual files a written statement with 
                the Secretary which sets forth--
                            (i) the name, address, and taxpayer 
                        identification number of the individual,
                            (ii) the amount of the underpayment for the 
                        taxable year, and
                            (iii) such information as the Secretary may 
                        require for purposes of determining the correct 
                        amount of the underpayment for the taxable 
                        year, and
                    (B) the individual agrees to a waiver of any 
                restriction on the assessment or collection of such 
                underpayment,
            (2) when filing the statement described in paragraph (1), 
        the individual pays the amount of the underpayment shown on 
        such statement, and
            (3) the individual pays the full amount of the interest 
        payable with respect to the underpayment, not later than--
                    (A) 90 days after the date on which the individual 
                is notified by the Secretary of the amount of such 
                interest, or
                    (B) any other date agreed to by the Secretary and 
                the individual, if such agreement is reached before the 
                expiration of the 90-day period referred to in 
                subparagraph (A).
The preceding sentence shall apply only to the extent that the 
underpayment for the taxable year does not exceed the amount set forth 
on the written statement filed under paragraph (1).
    (b) Amnesty Not To Apply in Certain Cases.--
            (1) Inapplicability if taxpayer contacted before statement 
        filed.--Subsection (a) shall not apply to any underpayment of 
        Federal income tax for any taxable year to the extent that 
        before the statement is filed under subsection (a)(1)--
                    (A) such underpayment was assessed,
                    (B) a notice of deficiency with respect to such 
                underpayment was mailed under section 6212 of the 
                Internal Revenue Code of 1986 and was received by the 
                taxpayer, or
                    (C) the taxpayer received notification from the 
                Secretary that the Secretary had questions about the 
                taxpayer's tax liability for the taxable year.
            (2) Inapplicability if fraud in seeking amnesty or criminal 
        investigation pending.--Subsection (a) shall not apply to any 
        taxpayer if--
                    (A) any representation made by such taxpayer under 
                this section is false or fraudulent in any material 
                respect, or
                    (B) a Justice Department referral (within the 
                meaning of section 7602(c)(2) of the Internal Revenue 
                Code of 1986) is in effect with respect to such 
                taxpayer as of the time such taxpayer files a statement 
                under subsection (a)(1).
    (d) Lack of Prejudice From Filing.--With respect to any taxable 
year which is not the subject of a filing by a taxpayer under 
subsection (a), the Secretary shall not take any action with respect to 
such taxpayer solely by reason of such filing, unless such taxpayer 
agrees to such action.
    (e) Definitions and Special Rules.--For purposes of this section--
            (1) Amnesty period.--The term ``amnesty period'' means the 
        6-month period beginning on July 1, 1996.
            (2) Federal income tax.--The term ``Federal income tax'' 
        means any tax imposed on an individual by chapter 1 or 2 of the 
        Internal Revenue Code of 1986.
            (3) Addition to tax includes additional amount.--The term 
        ``addition to tax'' includes any additional amount.
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury or his delegate.
            (6) Form of statement.--Any statement under subsection 
        (a)(1) shall be filed in such manner and form as the Secretary 
        shall prescribe.
    (e) Underpayments for Which Amnesty Available.--The provisions of 
this section shall apply only to underpayments of Federal income tax 
for taxable years ending before January 1, 1994.
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