[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 570 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                 S. 570

  To amend the Internal Revenue Code of 1986 to exempt certain small 
     businesses from the mandatory electronic fund transfer system.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 14, 1997

    Mr. Nickles (for himself, Mr. Breaux, Mr. Mack, Mr. Baucus, Mr. 
 D'Amato, Mr. Bond, Mr. DeWine, Mr. Cochran, Mr. Enzi, Mr. Hagel, and 
  Mr. Thomas) 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 exempt certain small 
     businesses from the mandatory electronic fund transfer system.

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

SECTION 1. EXEMPTION OF CERTAIN SMALL BUSINESSES FROM ELECTRONIC FUND 
              TRANSFER REQUIREMENTS.

    (a) In General.--Section 6302(h)(2) of the Internal Revenue Code of 
1986 (relating to use of electronic fund transfer system for collection 
of certain taxes) is amended to read as follows:
            ``(2) Taxpayers subject to system.--
                    ``(A) In general.--The regulations referred to in 
                paragraph (1) shall only require taxpayers to use the 
                electronic funds transfer system for a calendar year if 
                the aggregate amount of depository taxes of such 
                taxpayer for the second preceding calendar year 
                exceeded the applicable dollar amount.
                    ``(B) Applicable dollar amount.--For purposes of 
                subparagraph (A)--

``If the 2d preceding                                    The applicable
  calendar year is:                                   dollar amount is:
    1995..........................................         $47,000,000 
    1996..........................................          30,000,000 
    1997..........................................          20,000,000 
    1998..........................................          10,000,000 
    1999 or later.................................           5,000,000.
                    ``(C) Aggregation rule.--All persons treated as a 
                single employer under subsections (a) and (b) of 
                section 52 shall be treated as a single taxpayer for 
                purposes of subparagraph (A).
                    ``(D) Voluntary compliance.--The Secretary shall 
                encourage taxpayers not described in subparagraph (A) 
                to participate in the electronic funds transfer system. 
                The participation of such taxpayers shall be 
                voluntary.''
    (b) Conforming Amendment.--Section 6302(h)(4) of such Code is 
amended to read as follows:
            ``(4) Coordination with other electronic fund transfer 
        requirements.--Under regulations, any tax required to be paid 
        by electronic fund transfer under section 5061(e) or 5703(b) 
        shall be paid in such a manner as to ensure that the 
        requirements of the second sentence of paragraph (1)(A) are 
        met.''
    (c) Reports.--The Secretary of the Treasury or his delegate shall 
submit annual reports to the Committee on Finance of the Senate and the 
Committee on Ways and Means of the House of Representatives. Such 
reports shall provide an analysis of the progress being made in 
implementing the electronic funds transfer system under section 6302(h) 
of the Internal Revenue Code of 1986, including, but not limited to, 
information with respect to--
            (1) the number and nature of any penalties imposed on 
        taxpayers due to noncompliance with such system,
            (2) any administrative efficiencies accruing to the Federal 
        Government by reason of such system, and
            (3) the amount of any additional costs imposed on 
        businesses to comply with such system.
    (d) Effective Date.--The amendments made by this section shall 
apply to deposits required to be made on and after the date of the 
enactment of this Act.
                                 <all>