[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 2622 Introduced in Senate (IS)]







105th CONGRESS
  2d Session
                                S. 2622

 To amend the Internal Revenue Code of 1986 to extend certain expiring 
                  provisions, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

             October 10 (legislative day, October 2), 1998

   Mr. Roth (for himself, Mr. Moynihan, Mr. Chafee, Mr. Baucus, Mr. 
  Grassley, Mr. Rockefeller, Mr. Hatch, Mr. Breaux, Mr. D'Amato, Mr. 
Conrad, Mr. Murkowski, Mr. Graham, Mr. Jeffords, Ms. Moseley-Braun, Mr. 
 Mack, Mr. Bryan, and Mr. Kerrey) 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 extend certain expiring 
                  provisions, 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. SHORT TITLE; AMENDMENT OF 1986 CODE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Tax Extension Act 
of 1998''.
    (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this Act an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of the Internal Revenue Code of 1986.
    (c) Table of Contents.--

Sec. 1. Short title; amendment of 1986 Code; table of contents.
               TITLE I--EXTENSION OF EXPIRING PROVISIONS

                       Subtitle A--Tax Provisions

Sec. 101. Research credit.
Sec. 102. Work opportunity credit.
Sec. 103. Welfare-to-work credit.
Sec. 104. Contributions of stock to private foundations.
Sec. 105. Subpart F exemption for active financing income.
Sec. 106. Credit for producing fuel from a nonconventional source.
Sec. 107. Disclosure of return information on income contingent student 
                            loans.
                      Subtitle B--Trade Provisions

Sec. 111. Extension of duty-free treatment under General System of 
                            Preferences.
Sec. 112. Trade adjustment assistance.
                     TITLE II--OTHER TAX PROVISIONS

Sec. 201. 100-percent deduction for health insurance costs of self-
                            employed individuals.
Sec. 202. Production flexibility contract payments.
Sec. 203. Income averaging for farmers made permanent.
Sec. 204. Nonrefundable personal credits fully allowed against regular 
                            tax liability during 1998.
                       TITLE III--REVENUE OFFSET

Sec. 301. Treatment of certain deductible liquidating distributions of 
                            regulated investment companies and real 
                            estate investment trusts.
                    TITLE IV--TECHNICAL CORRECTIONS

Sec. 401. Definitions; coordination with other titles.
Sec. 402. Amendments related to Internal Revenue Service Restructuring 
                            and Reform Act of 1998.
Sec. 403. Amendments related to Taxpayer Relief Act of 1997.
Sec. 404. Amendments related to Tax Reform Act of 1984.
Sec. 405. Other amendments.
Sec. 406. Amendments related to Uruguay Round Agreements Act.

               TITLE I--EXTENSION OF EXPIRING PROVISIONS

                       Subtitle A--Tax Provisions

SEC. 101. RESEARCH CREDIT.

    (a) Temporary Extension.--
            (1) In general.--Paragraph (1) of section 41(h) (relating 
        to termination) is amended--
                    (A) by striking ``June 30, 1998'' and inserting 
                ``June 30, 1999'',
                    (B) by striking ``24-month'' and inserting ``36-
                month'', and
                    (C) by striking ``24 months'' and inserting ``36 
                months''.
            (2) Technical amendment.--Subparagraph (D) of section 
        45C(b)(1) is amended by striking ``June 30, 1998'' and 
        inserting ``June 30, 1999''.
    (b) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred after June 30, 1998.

SEC. 102. WORK OPPORTUNITY CREDIT.

    (a) Temporary Extension.--Subparagraph (B) of section 51(c)(4) 
(relating to termination) is amended by striking ``June 30, 1998'' and 
inserting ``June 30, 1999''.
    (b) Effective Date.--The amendment made by this section shall apply 
to individuals who begin work for the employer after June 30, 1998.

SEC. 103. WELFARE-TO-WORK CREDIT.

    Subsection (f) of section 51A (relating to termination) is amended 
by striking ``April 30, 1999'' and inserting ``June 30, 1999''.

SEC. 104. CONTRIBUTIONS OF STOCK TO PRIVATE FOUNDATIONS.

    (a) In General.--Subparagraph (D)(ii) of section 170(e)(5) is 
amended by striking ``June 30, 1998'' and inserting ``June 30, 1999''.
    (b) Effective Date.--The amendment made by this section shall apply 
to contributions made after June 30, 1998.

SEC. 105. SUBPART F EXEMPTION FOR ACTIVE FINANCING INCOME.

    (a) In General.--Paragraph (9) of section 954(h) (relating to 
application) is amended to read as follows:
            ``(9) Application.--This subsection shall apply to--
                    ``(A)(i) the first full taxable year of a foreign 
                corporation beginning after December 31, 1997, and 
                before January 1, 1999, and the taxable year of such 
                corporation immediately following such taxable year, or
                    ``(ii) if a foreign corporation has no such first 
                full taxable year, the first taxable year of such 
                corporation beginning after December 31, 1998, and 
                before January 1, 2000, and
                    ``(B) taxable years of United States shareholders 
                of a foreign corporation with or within which the 
                corporation's taxable years described in subparagraph 
                (A) end.''
    (b) Conforming Amendment.--Section 1175(c) of the Taxpayer Relief 
Act of 1997 is repealed.

SEC. 106. CREDIT FOR PRODUCING FUEL FROM A NONCONVENTIONAL SOURCE.

    (a) In General.--Section 29(g)(1)(A) is amended by striking ``July 
1, 1998'' and inserting ``July 1, 1999''.
    (b) Effective Date.--The amendment made by this section shall apply 
to facilities placed in service after June 30, 1998.

SEC. 107. DISCLOSURE OF RETURN INFORMATION ON INCOME CONTINGENT STUDENT 
              LOANS.

    Subparagraph (D) of section 6103(l)(13) (relating to disclosure of 
return information to carry out income contingent repayment of student 
loans) is amended by striking ``September 30, 1998'' and inserting 
``September 30, 2004''.

           Subtitle B--Extension of Expired Trade Provisions

SEC. 111. EXTENSION OF DUTY-FREE TREATMENT UNDER GENERAL SYSTEM OF 
              PREFERENCES.

    (a) In General.--Section 505 of the Trade Act of 1974 (19 U.S.C. 
2465) is amended by striking ``June 30, 1998'' and inserting ``December 
31, 1999''.
    (b) Effective Date.--
            (1) In general.--The amendments made by this section apply 
        to articles entered on or after October 1, 1998.
            (2) Retroactive application for certain liquidations and 
        reliquidations.--
                    (A) General rule.--Notwithstanding section 514 of 
                the Tariff Act of 1930 or any other provision of law 
                and subject to paragraph (3), any article that was 
                entered--
                            (i) after June 30, 1998, and
                            (ii) before October 1, 1998, and
                to which duty-free treatment under title V of the Trade 
                Act of 1974 would have applied if the entry had been 
                made on June 30, 1998, shall be liquidated or 
                reliquidated as free of duty, and the Secretary of the 
                Treasury shall refund any duty paid with respect to 
                such entry.
                    (B) Limitations on refunds.--No refund shall be 
                made pursuant to this paragraph before October 1, 1998.
                    (C) Entry.--As used in this paragraph, the term 
                ``entry'' includes a withdrawal from warehouse for 
                consumption.
            (3) Requests.--Liquidation or reliquidation may be made 
        under paragraph (2) with respect to an entry only if a request 
        therefor is filed with the Customs Service, within 180 days 
        after the date of enactment of this Act, that contains 
        sufficient information to enable the Customs Service--
                    (A) to locate the entry; or
                    (B) to reconstruct the entry if it cannot be 
                located.

SEC. 112. TRADE ADJUSTMENT ASSISTANCE.

    (a) Authorization of Appropriations.--
            (1) In general.--Section 245 of the Trade Act of 1974 (19 
        U.S.C. 2317) is amended--
                    (A) in subsection (a), by striking ``1993, 1994, 
                1995, 1996, 1997, and 1998,'' and inserting ``1998 and 
                1999,''; and
                    (B) in subsection (b), by striking ``1994, 1995, 
                1996, 1997, and 1998,'' and inserting ``1998 and 
                1999,''.
            (2) Assistance for firms.--Section 256(b) of the Trade Act 
        of 1974 (19 U.S.C. 2346(b)) is amended by striking ``1993, 
        1994, 1995, 1996, 1997, and'' and inserting ``, and 1999,'' 
        after ``1998''.
    (b) Termination.--Section 285(c) of the Trade Act of 1974 (19 
U.S.C. 2271 note preceding) is amended--
            (1) in paragraph (1), by striking ``September 30, 1998'' 
        and inserting ``June 30, 1999''; and
            (2) in paragraph (2)(A), by striking ``the day that is'' 
        and all that follows through ``effective'' and inserting ``June 
        30, 1999''.

                     TITLE II--OTHER TAX PROVISIONS

SEC. 201. 100-PERCENT DEDUCTION FOR HEALTH INSURANCE COSTS OF SELF-
              EMPLOYED INDIVIDUALS.

    (a) In General.--Subparagraph (B) of section 162(l)(1) (relating to 
special rules for health insurance costs of self-employed individuals) 
is amended to read as follows:
                    ``(B) Applicable percentage.--For purposes of 
                subparagraph (A), the applicable percentage shall be--
                            ``(i) 45 percent for taxable years 
                        beginning in 1999 and 2000,
                            ``(ii) 70 percent for taxable years 
                        beginning in 2001, and
                            ``(iii) 100 percent for taxable years 
                        beginning after December 31, 2001.''
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 1998.

SEC. 202. PRODUCTION FLEXIBILITY CONTRACT PAYMENTS.

    (a) In General.--The options under paragraphs (2) and (3) of 
section 112(d) of the Federal Agriculture Improvement and Reform Act of 
1996 (7 U.S.C. 7212(d) (2) and (3)), as in effect on the date of the 
enactment of this Act, shall be disregarded in determining the taxable 
year for which any payment under a production flexibility contract 
under subtitle B of title I of such Act (as so in effect) is properly 
includible in gross income for purposes of the Internal Revenue Code of 
1986.
    (b) Effective Date.--Subsection (a) shall apply to taxable years 
ending after December 31, 1995.

SEC. 203. INCOME AVERAGING FOR FARMERS MADE PERMANENT.

    Subsection (c) of section 933 of the Taxpayer Relief Act of 1997 is 
amended by striking ``, and before January 1, 2001''.

SEC. 204. NONREFUNDABLE PERSONAL CREDITS FULLY ALLOWED AGAINST REGULAR 
              TAX LIABILITY DURING 1998.

    (a) In General.--Subsection (a) of section 26 is amended by adding 
at the end the following flush sentence:
``For purposes of paragraph (2), the taxpayer's tentative minimum tax 
for any taxable year beginning during 1998 shall be treated as being 
zero.''
    (b) Conforming Amendment.--Section 24(d)(2) is amended by striking 
``The credit'' and ``For taxable years beginning after December 31, 
1998, the credit''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1997.

                       TITLE III--REVENUE OFFSET

SEC. 301. TREATMENT OF CERTAIN DEDUCTIBLE LIQUIDATING DISTRIBUTIONS OF 
              REGULATED INVESTMENT COMPANIES AND REAL ESTATE INVESTMENT 
              TRUSTS.

    (a) In General.--Section 332 (relating to complete liquidations of 
subsidiaries) is amended by adding at the end the following new 
subsection:
    ``(c) Deductible Liquidating Distributions of Regulated Investment 
Companies and Real Estate Investment Trusts.--If a corporation receives 
a distribution from a regulated investment company or a real estate 
investment trust which is considered under subsection (b) as being in 
complete liquidation of such company or trust, then, notwithstanding 
any other provision of this chapter, such corporation shall recognize 
and treat as a dividend from such company or trust an amount equal to 
the deduction for dividends paid allowable to such company or trust by 
reason of such distribution.''
    (b) Conforming Amendments.--
            (1) The material preceding paragraph (1) of section 332(b) 
        is amended by striking ``subsection (a)'' and inserting ``this 
        section''.
            (2) Paragraph (1) of section 334(b) is amended by striking 
        ``section 332(a)'' and inserting ``section 332''.
    (c) Effective Date.--The amendments made by this section shall 
apply to distributions after May 21, 1998.

                    TITLE IV--TECHNICAL CORRECTIONS

SEC. 401. DEFINITIONS; COORDINATION WITH OTHER TITLES.

    (a) Definitions.--For purposes of this title--
            (1) 1986 code.--The term ``1986 Code'' means the Internal 
        Revenue Code of 1986.
            (2) 1998 act.--The term ``1998 Act'' means the Internal 
        Revenue Service Restructuring and Reform Act of 1998 (Public 
        Law 105-206).
            (3) 1997 act.--The term ``1997 Act'' means the Taxpayer 
        Relief Act of 1997 (Public Law 105-34).
    (b) Coordination With Other Titles.--For purposes of applying the 
amendments made by any title of this Act other than this title, the 
provisions of this title shall be treated as having been enacted 
immediately before the provisions of such other titles.

SEC. 402. AMENDMENTS RELATED TO INTERNAL REVENUE SERVICE RESTRUCTURING 
              AND REFORM ACT OF 1998.

    (a) Amendment Related to Section 1101 of 1998 Act.--Paragraph (5) 
of section 6103(h) of the 1986 Code, as added by section 1101(b) of the 
1998 Act, is redesignated as paragraph (6).
    (b) Amendment Related to Section 3001 of 1998 Act.--Paragraph (2) 
of section 7491(a) of the 1986 Code is amended by adding at the end the 
following flush sentence:
        ``Subparagraph (C) shall not apply to any qualified revocable 
        trust (as defined in section 645(b)(1)) with respect to 
        liability for tax for any taxable year ending after the date of 
        the decedent's death and before the applicable date (as defined 
        in section 645(b)(2)).''.
    (c) Amendments Related to Section 3201 of 1998 Act.--
            (1) Section 7421(a) of the 1986 Code is amended by striking 
        ``6015(d)'' and inserting ``6015(e)''.
            (2) Subparagraph (A) of section 6015(e)(3) is amended by 
        striking ``of this section'' and inserting ``of subsection (b) 
        or (f)''.
    (d) Amendment Related to Section 3301 of 1998 Act.--Paragraph (2) 
of section 3301(c) of the 1998 Act is amended by striking ``The 
amendments'' and inserting ``Subject to any applicable statute of 
limitation not having expired with regard to either a tax underpayment 
or a tax overpayment, the amendments''.
    (e) Amendment Related to Section 3401 of 1998 Act.--Section 3401(c) 
of the 1998 Act is amended--
            (1) in paragraph (1), by striking ``7443(b)'' and inserting 
        ``7443A(b)''; and
            (2) in paragraph (2), by striking ``7443(c)'' and inserting 
        ``7443A(c)''.
    (f) Amendment Related to Section 3433 of 1998 Act.--Section 7421(a) 
of the 1986 Code is amended by inserting ``6331(i),'' after 
``6246(b),''.
    (g) Amendment Related to Section 3467 of 1998 Act.--The subsection 
(d) of section 6159 of the 1986 Code relating to cross reference is 
redesignated as subsection (e).
    (h) Amendment Related to Section 3708 of 1998 Act.--Subparagraph 
(A) of section 6103(p)(3) of the 1986 Code is amended by inserting 
``(f)(5),'' after ``(c), (e),''.
    (i) Amendments Related to Section 5001 of 1998 Act.--
            (1) Subparagraph (B) of section 1(h)(13) of the 1986 Code 
        is amended by striking ``paragraph (7)(A)'' and inserting 
        ``paragraph (7)(A)(i)''.
            (2)(A) Subparagraphs (A)(i)(II), (A)(ii)(II), and (B)(ii) 
        of section 1(h)(13) of the 1986 Code shall not apply to any 
        distribution after December 31, 1997, by a regulated investment 
        company or a real estate investment trust with respect to--
                    (i) gains and losses recognized directly by such 
                company or trust, and
                    (ii) amounts properly taken into account by such 
                company or trust by reason of holding (directly or 
                indirectly) an interest in another such company or 
                trust to the extent that such subparagraphs did not 
                apply to such other company or trust with respect to 
                such amounts.
            (B) Subparagraph (A) shall not apply to any distribution 
        which is treated under section 852(b)(7) or 857(b)(8) of the 
        1986 Code as received on December 31, 1997.
            (C) For purposes of subparagraph (A), any amount which is 
        includible in gross income of its shareholders under section 
        852(b)(3)(D) or 857(b)(3)(D) of the 1986 Code after December 
        31, 1997, shall be treated as distributed after such date.
            (D)(i) For purposes of subparagraph (A), in the case of a 
        qualified partnership with respect to which a regulated 
        investment company meets the holding requirement of clause 
        (iii)--
                    (I) the subparagraphs referred to in subparagraph 
                (A) shall not apply to gains and losses recognized 
                directly by such partnership for purposes of 
                determining such company's distributive share of such 
                gains and losses, and
                    (II) such company's distributive share of such 
                gains and losses (as so determined) shall be treated as 
                recognized directly by such company.
        The preceding sentence shall apply only if the qualified 
        partnership provides the company with written documentation of 
        such distributive share as so determined.
            (ii) For purposes of clause (i), the term ``qualified 
        partnership'' means, with respect to a regulated investment 
        company, any partnership if--
                    (I) the partnership is an investment company 
                registered under the Investment Company Act of 1940,
                    (II) the regulated investment company is permitted 
                to invest in such partnership by reason of section 
                12(d)(1)(E) of such Act or an exemptive order of the 
                Securities and Exchange Commission under such section, 
                and
                    (III) the regulated investment company and the 
                partnership have the same taxable year.
            (iii) A regulated investment company meets the holding 
        requirement of this clause with respect to a qualified 
        partnership if (as of January 1, 1998)--
                    (I) the value of the interests of the regulated 
                investment company in such partnership is 35 percent or 
                more of the value of such company's total assets, or
                    (II) the value of the interests of the regulated 
                investment company in such partnership and all other 
                qualified partnerships is 90 percent or more of the 
                value of such company's total assets.
            (3) Paragraph (13) of section 1(h) of the 1986 Code is 
        amended by adding at the end the following new subparagraph:
                    ``(D) Charitable remainder trusts.--Subparagraphs 
                (A) and (B)(ii) shall not apply to any capital gain 
                distribution made by a trust described in section 
                664.''
    (j) Amendment Related to Section 7004 of 1998 Act.--Clause (i) of 
section 408A(c)(3)(C) of the 1986 Code, as amended by section 7004 of 
the 1998 Act, is amended by striking the period at the end of subclause 
(II) and inserting ``, and''.
    (k) Effective Date.--The amendments made by this section shall take 
effect as if included in the provisions of the 1998 Act to which they 
relate.

SEC. 403. AMENDMENTS RELATED TO TAXPAYER RELIEF ACT OF 1997.

    (a) Amendments Related to Section 202 of 1997 Act.--
            (1) Paragraph (2) of section 163(h) of the 1986 Code is 
        amended by striking ``and'' at the end of subparagraph (D), by 
        striking the period at the end of subparagraph (E) and 
        inserting ``, and'', and by adding at the end the following new 
        subparagraph:
                    ``(F) any interest allowable as a deduction under 
                section 221 (relating to interest on educational 
                loans).''
            (2)(A) Subparagraph (C) of section 221(b)(2) of the 1986 
        Code is amended--
                    (i) by striking ``135, 137,'' in clause (i),
                    (ii) by inserting ``135, 137,'' after ``sections 
                86,'' in clause (ii), and
                    (iii) by striking the last sentence.
            (B) Sections 86(b)(2)(A), 135(c)(4)(A), and 
        219(g)(3)(A)(ii) of the 1986 Code are each amended by inserting 
        ``221,'' after ``137,''.
            (C) Subparagraph (A) of section 137(b)(3) of the 1986 Code 
        is amended by inserting ``221,'' before ``911,''.
            (D) Clause (iii) of section 469(i)(3)(E) of the 1986 Code 
        is amended to read as follows:
                            ``(iii) the amounts allowable as a 
                        deduction under sections 219 and 221, and''.
            (3) The last sentence of section 221(e)(1) of the 1986 Code 
        is amended by inserting before the period ``or to any person by 
        reason of a loan under any qualified employer plan (as defined 
        in section 72(p)(4)) or under any contract referred to in 
        section 72(p)(5)''.
    (b) Provision Related to Section 311 of 1997 Act.--In the case of 
any capital gain distribution made after 1997 by a trust to which 
section 664 of the 1986 Code applies with respect to amounts properly 
taken into account by such trust during 1997, paragraphs (5)(A)(i)(I), 
(5)(A)(ii)(I), and (13)(A) of section 1(h) of the 1986 Code (as in 
effect for taxable years ending on December 31, 1997) shall not apply.
    (c) Amendment Related to Section 506 of 1997 Act.--Section 
2001(f)(2) of the 1986 Code is amended by adding at the end the 
following:
        ``For purposes of subparagraph (A), the value of an item shall 
        be treated as shown on a return if the item is disclosed in the 
        return, or in a statement attached to the return, in a manner 
        adequate to apprise the Secretary of the nature of such 
        item.''.
    (d) Amendments Related to Section 904 of 1997 Act.--
            (1) Paragraph (1) of section 9510(c) of the 1986 Code is 
        amended to read as follows:
            ``(1) In general.--Amounts in the Vaccine Injury 
        Compensation Trust Fund shall be available, as provided in 
        appropriation Acts, only for--
                    ``(A) the payment of compensation under subtitle 2 
                of title XXI of the Public Health Service Act (as in 
                effect on August 5, 1997) for vaccine-related injury or 
                death with respect to any vaccine--
                            ``(i) which is administered after September 
                        30, 1988, and
                            ``(ii) which is a taxable vaccine (as 
                        defined in section 4132(a)(1)) at the time 
                        compensation is paid under such subtitle 2, or
                    ``(B) the payment of all expenses of administration 
                (but not in excess of $9,500,000 for any fiscal year) 
                incurred by the Federal Government in administering 
                such subtitle.''.
            (2) Section 9510(b) of the 1986 Code is amended by adding 
        at the end the following new paragraph:
            ``(3) Limitation on transfers to vaccine injury 
        compensation trust fund.--No amount may be appropriated to the 
        Vaccine Injury Compensation Trust Fund on and after the date of 
        any expenditure from the Trust Fund which is not permitted by 
        this section. The determination of whether an expenditure is so 
        permitted shall be made without regard to--
                    ``(A) any provision of law which is not contained 
                or referenced in this title or in a revenue Act, and
                    ``(B) whether such provision of law is a 
                subsequently enacted provision or directly or 
                indirectly seeks to waive the application of this 
                paragraph.''.
    (e) Amendments Related to Section 915 of 1997 Act.--
            (1) Section 915 of the 1997 Act is amended--
                    (A) in subsection (b), by inserting ``or 1998'' 
                after ``1997'', and
                    (B) by amending subsection (d) to read as follows:
    ``(d) Effective Date.--This section shall apply to taxable years 
ending with or within calendar year 1997.''.
            (2) Paragraph (2) of section 6404(h) of the 1986 Code is 
        amended by inserting ``Robert T. Stafford'' before 
        ``Disaster''.
    (f) Amendments Related to Section 1012 of 1997 Act.--
            (1) Paragraph (2) of section 351(c) of the 1986 Code, as 
        amended by section 6010(c) of the 1998 Act, is amended by 
        inserting ``, or the fact that the corporation whose stock was 
        distributed issues additional stock,'' after ``dispose of part 
        or all of the distributed stock''.
            (2) Clause (ii) of section 368(a)(2)(H) of the 1986 Code, 
        as amended by section 6010(c) of the 1998 Act, is amended by 
        inserting ``, or the fact that the corporation whose stock was 
        distributed issues additional stock,'' after ``dispose of part 
        or all of the distributed stock''.
    (g) Provision Related to Section 1042 of 1997 Act.--Rules similar 
to the rules of section 1.1502-75(d)(5) of the Treasury Regulations 
shall apply with respect to any organization described in section 
1042(b) of the 1997 Act.
    (h) Amendment Related to Section 1082 of 1997 Act.--Subparagraph 
(F) of section 172(b)(1) of the 1986 Code is amended by adding at the 
end the following new clause:
                            ``(iv) Coordination with paragraph (2).--
                        For purposes of applying paragraph (2), an 
                        eligible loss for any taxable year shall be 
                        treated in a manner similar to the manner in 
                        which a specified liability loss is treated.''
    (i) Amendment Related to Section 1084 of 1997 Act.--Paragraph (3) 
of section 264(f) of the 1986 Code is amended by adding at the end the 
following flush sentence:
        ``If the amount described in subparagraph (A) with respect to 
        any policy or contract does not reasonably approximate its 
        actual value, the amount taken into account under subparagraph 
        (A) shall be the greater of the amount of the insurance company 
        liability or the insurance company reserve with respect to such 
        policy or contract (as determined for purposes of the annual 
        statement approved by the National Association of Insurance 
        Commissioners) or shall be such other amount as is determined 
        by the Secretary.''
    (j) Amendment Related to Section 1175 of 1997 Act.--Subparagraph 
(C) of section 954(e)(2) of the 1986 Code is amended by striking 
``subsection (h)(8)'' and inserting ``subsection (h)(9)''.
    (k) Amendment Related to Section 1205 of 1997 Act.--Paragraph (2) 
of section 6311(d) of the 1986 Code is amended by striking ``under such 
contracts'' in the last sentence and inserting ``under any such 
contract for the use of credit, debit, or charge cards for the payment 
of taxes imposed by subtitle A''.
    (l) Effective Date.--The amendments made by this section shall take 
effect as if included in the provisions of the 1997 Act to which they 
relate.

SEC. 404. AMENDMENTS RELATED TO TAX REFORM ACT OF 1984.

    (a) In General.--Subparagraph (C) of section 172(d)(4) of the 1986 
Code is amended to read as follows:
                    ``(C) any deduction for casualty or theft losses 
                allowable under paragraph (2) or (3) of section 165(c) 
                shall be treated as attributable to the trade or 
                business; and''.
    (b) Conforming Amendments.--
            (1) Paragraph (3) of section 67(b) of the 1986 Code is 
        amended by striking ``for losses described in subsection (c)(3) 
        or (d) of section 165'' and inserting ``for casualty or theft 
        losses described in paragraph (2) or (3) of section 165(c) or 
        for losses described in section 165(d)''.
            (2) Paragraph (3) of section 68(c) of the 1986 Code is 
        amended by striking ``for losses described in subsection (c)(3) 
        or (d) of section 165'' and inserting ``for casualty or theft 
        losses described in paragraph (2) or (3) of section 165(c) or 
        for losses described in section 165(d)''.
            (3) Paragraph (1) of section 873(b) is amended to read as 
        follows:
            ``(1) Losses.--The deduction allowed by section 165 for 
        casualty or theft losses described in paragraph (2) or (3) of 
        section 165(c), but only if the loss is of property located 
        within the United States.''
    (c) Effective Dates.--
            (1) The amendments made by subsections (a) and (b)(3) shall 
        apply to taxable years beginning after December 31, 1983.
            (2) The amendment made by subsection (b)(1) shall apply to 
        taxable years beginning after December 31, 1986.
            (3) The amendment made by subsection (b)(2) shall apply to 
        taxable years beginning after December 31, 1990.

SEC. 405. OTHER AMENDMENTS.

    (a) Amendments Related to Section 6103 of 1986 Code.--
            (1) Subsection (j) of section 6103 of the 1986 Code is 
        amended by adding at the end the following new paragraph:
            ``(5) Department of agriculture.--Upon request in writing 
        by the Secretary of Agriculture, the Secretary shall furnish 
        such returns, or return information reflected thereon, as the 
        Secretary may prescribe by regulation to officers and employees 
        of the Department of Agriculture whose official duties require 
        access to such returns or information for the purpose of, but 
        only to the extent necessary in, structuring, preparing, and 
        conducting the census of agriculture pursuant to the Census of 
        Agriculture Act of 1997 (Public Law 105-113).''.
            (2) Paragraph (4) of section 6103(p) of the 1986 Code is 
        amended by striking ``(j)(1) or (2)'' in the material preceding 
        subparagraph (A) and in subparagraph (F) and inserting 
        ``(j)(1), (2), or (5)''.
            (3) The amendments made by this subsection shall apply to 
        requests made on or after the date of the enactment of this 
        Act.
    (b) Amendment Related to Section 9004 of Transportation Equity Act 
for the 21st Century.--
            (1) Paragraph (2) of section 9503(f) of the 1986 Code is 
        amended to read as follows:
            ``(2) notwithstanding section 9602(b), obligations held by 
        such Fund after September 30, 1998, shall be obligations of the 
        United States which are not interest-bearing.''
            (2) The amendment made by paragraph (1) shall take effect 
        on October 1, 1998.
    (c) Amendment Related to Treasury and General Government 
Appropriations Act, 1999.--
            (1) The Treasury and General Government Appropriations Act, 
        1999 is amended by striking section 804 (relating to technical 
        and clarifying amendments relating to judicial retirement 
        program).
            (2) The amendment made by paragraph (1) shall take effect 
        as if such section 804 had never been enacted.
    (d) Clerical Amendments.--
            (1) Clause (i) of section 51(d)(6)(B) of the 1986 Code is 
        amended by striking ``rehabilitation plan'' and inserting 
        ``plan for employment''. The reference to ``plan for 
        employment'' in such clause shall be treated as including a 
        reference to the rehabilitation plan referred to in such clause 
        as in effect before the amendment made by the preceding 
        sentence.
            (2) Paragraph (3) of section 56(a) of the 1986 Code is 
        amended by striking ``section 460(b)(2)'' and inserting 
        ``section 460(b)(1)'' and by striking ``section 460(b)(4)'' and 
        inserting ``section 460(b)(3)''.
            (3) Paragraph (10) of section 2031(c) of the 1986 Code is 
        amended by striking ``section 2033A(e)(3)'' and inserting 
        ``section 2057(e)(3)''.
            (4) Subparagraphs (C) and (D) of section 6693(a)(2) of the 
        1986 Code are each amended by striking ``Section'' and 
        inserting ``section''.

SEC. 406. AMENDMENTS RELATED TO URUGUAY ROUND AGREEMENTS ACT.

    (a) Inapplicability of Assignment Prohibition.--Section 207 of the 
Social Security Act (42 U.S.C. 407) is amended by adding at the end the 
following new subsection:
    ``(c) Nothing in this section shall be construed to prohibit 
withholding taxes from any benefit under this title, if such 
withholding is done pursuant to a request made in accordance with 
section 3402(p)(1) of the Internal Revenue Code of 1986 by the person 
entitled to such benefit or such person's representative payee.''.
    (b) Proper Allocation of Costs of Withholding Between the Trust 
Funds and the General Fund.--Section 201(g) of such Act (42 U.S.C. 
401(g)) is amended--
            (1) by inserting before the period in paragraph (1)(A)(ii) 
        the following: ``and the functions of the Social Security 
        Administration in connection with the withholding of taxes from 
        benefits, as described in section 207(c), pursuant to requests 
        by persons entitled to such benefits or such persons' 
        representative payee'';
            (2) by inserting before the period at the end of paragraph 
        (1)(A) the following: ``and the functions of the Social 
        Security Administration in connection with the withholding of 
        taxes from benefits, as described in section 207(c), pursuant 
        to requests by persons entitled to such benefits or such 
        persons' representative payee'';
            (3) in paragraph (1)(B)(i)(I), by striking ``subparagraph 
        (A)),'' and inserting ``subparagraph (A)) and the functions of 
        the Social Security Administration in connection with the 
        withholding of taxes from benefits, as described in section 
        207(c), pursuant to requests by persons entitled to such 
        benefits or such persons' representative payee,'';
            (4) in paragraph (1)(C)(iii), by inserting before the 
        period the following: ``and the functions of the Social 
        Security Administration in connection with the withholding of 
        taxes from benefits, as described in section 207(c), pursuant 
        to requests by persons entitled to such benefits or such 
        persons' representative payee'';
            (5) in paragraph (1)(D), by inserting after ``section 232'' 
        the following: ``and the functions of the Social Security 
        Administration in connection with the withholding of taxes from 
        benefits as described in section 207(c)''; and
            (6) in paragraph (4), by inserting after the first sentence 
        the following: ``The Board of Trustees of such Trust Funds 
        shall prescribe the method of determining the costs which 
        should be borne by the general fund in the Treasury of carrying 
        out the functions of the Social Security Administration in 
        connection with the withholding of taxes from benefits, as 
        described in section 207(c), pursuant to requests by persons 
        entitled to such benefits or such persons' representative 
        payee.''.
    (c) Effective Date.--The amendments made by subsection (b) shall 
apply to benefits paid on or after the first day of the second month 
beginning after the month in which this Act is enacted.
                                 <all>