[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3667 Introduced in House (IH)]







104th CONGRESS
  2d Session
                                H. R. 3667

 To amend the Internal Revenue Code of 1986 to exclude tips from gross 
                                income.


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                    IN THE HOUSE OF REPRESENTATIVES

                             June 18, 1996

  Mr. Crane 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 exclude tips from gross 
                                income.

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

SECTION 1. EXCLUSION OF TIPS FROM GROSS INCOME.

    (a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to items specifically excluded 
from gross income) is amended by redesignating section 137 as section 
138 and by inserting after section 136 the following new section:

``SEC. 137. TIPS.

    ``(a) In General.--Gross income shall not include tips.
    ``(b) Regulations Prescribed by the Secretary.--The Secretary shall 
prescribe such regulations as may be necessary to carry out the 
purposes of this section.''
    (b) Technical and Conforming Amendments.--The Secretary of the 
Treasury shall, within 90 days after the date of the enactment of this 
Act, submit to the Committee on Ways and Means recommendations for 
technical and conforming amendments to the Internal Revenue Code of 
1986 which the Secretary of the Treasury considers appropriate as a 
result of the amendments made by subsection (a).
    (c) Clerical Amendments.--The table of sections for part III of 
subchapter B of chapter 1 of such Code is amended by striking out the 
item relating to section 137 and by inserting in lieu thereof the 
following:

                              ``Sec. 137. Tips.
                              ``Sec. 138. Cross references to other 
                                        Acts.''

SEC. 2. EFFECTIVE DATE.

    The amendments made by section 1 shall apply to tips received after 
the date of the enactment of this Act.
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