[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4645 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 4645

 To extend permanently chapter 12 of title 11, United States Code, and 
to amend the Internal Revenue Code of 1986 to facilitate the bankruptcy 
          and debt restructuring process relating to farmers.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 25, 1998

Mr. Smith of Michigan introduced the following bill; which was referred 
to the Committee on the Judiciary, and in addition to the Committee on 
   Ways and Means, 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 extend permanently chapter 12 of title 11, United States Code, and 
to amend the Internal Revenue Code of 1986 to facilitate the bankruptcy 
          and debt restructuring process relating to farmers.

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

SECTION 1. REPEAL OF FAMILY FARMER BANKRUPTCY SUNSET PROVISION.

    Section 302 of the Bankruptcy Judges, United States Trustees, and 
Family Farmer Bankruptcy Act of 1986 (28 U.S.C. 581 note) is amended by 
striking subsection (f).

SEC. 2. TAX RULES RELATING TO ADJUSTMENT OF DEBTS OF A FAMILY FARMER 
              UNDER CHAPTER 12 OF TITLE 11, UNITED STATES CODE.

    (a) In General.--Subsection (a) of section 1398 of the Internal 
Revenue Code of 1986 (relating to rules relating to individuals' title 
11 cases) is amended by striking ``or'' after ``liquidations)'' and 
inserting a comma and by inserting ``, or chapter 12 (relating to 
adjustment of debts of a family farmer with regular annual income)'' 
after ``reorganizations)''.
    (b) Conforming Amendment.--Paragraph (1) of section 1398(b) of such 
Code is amended by striking ``or 11'' and inserting ``, 11, or 12''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 3. INCLUSION OF INCOME IN CONNECTION WITH ABANDONMENT OF PROPERTY 
              OF A DEBTOR IN DEBTOR'S TAXABLE ESTATE.

    (a) In General.--Paragraph (1) of section 1398(e) of the Internal 
Revenue Code of 1986 is amended by adding at the end the following: 
``For purposes of this paragraph, gross income of the estate shall 
include any income in connection with the abandonment of property to 
the debtor under section 554 of title 11, United States Code, which 
arose before the date of such abandonment, and gross income of the 
debtor shall not include any income in connection with such 
abandonment.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to property abandoned after the date of the enactment of this 
Act.
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