[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4251 Introduced in House (IH)]







104th CONGRESS
  2d Session
                                H. R. 4251

  To amend the Internal Revenue Code of 1986 to exempt certain small 
businesses from the required use of the electronic fund transfer system 
             for depository taxes, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 27, 1996

  Mr. Hastings of Washington 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 exempt certain small 
businesses from the required use of the electronic fund transfer system 
             for depository taxes, and for other purposes.

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

SECTION 1. EXCEPTION FOR SMALL BUSINESSES FROM REQUIRED USE OF 
              ELECTRONIC FUND TRANSFER SYSTEM.

    (a) In General.--Subsection (h) of section 6302 of the Internal 
Revenue Code of 1986 (relating to use of electronic fund transfer 
system for collection of certain taxes) is amended by redesignating 
paragraphs (3) and (4) as paragraphs (4) and (5), respectively, and by 
inserting after paragraph (2) the following new paragraph:
            ``(3) Exception for small depositors.--
                    ``(A) In general.--A taxpayer who is a small 
                depositor for any calendar year shall not be required 
                to make deposits by electronic fund transfer for taxes 
                attributable to payments made during the following 
                calendar year.
                    ``(B) Small depositor.--A taxpayer is a small 
                depositor for any calendar year if the amount of 
                employment taxes attributable to payments made by such 
                taxpayer during such year is $50,000 or less.''
    (b) Required Percentages of Deposits Frozen at 1996 Level.--
            (1) Subparagraph (B) of section 6302(h)(2) of such Code is 
        amended--
                    (A) by striking ``the applicable required 
                percentage'' in clause (i) and inserting ``20.1 
                percent'', and
                    (B) by striking ``the applicable required 
                percentage'' in clause (ii) and inserting ``30 
                percent''.
            (2) Paragraph (2) of section 6302(h) of such Code is 
        amended by striking subparagraph (C).
    (c) Effective Date.--The amendments made by this section shall take 
effect on July 1, 1997.
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