[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2378 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 2378

  To amend the Internal Revenue Code of 1986 to clarify that advance 
 pricing agreements between taxpayers and the Internal Revenue Service 
                  are confidential return information.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 29, 1999

Mr. Houghton (for himself, Mr. Sam Johnson of Texas, Mr. Levin, and Ms. 
    Dunn) 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 clarify that advance 
 pricing agreements between taxpayers and the Internal Revenue Service 
                  are confidential return information.

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

SECTION 1. ADVANCE PRICING AGREEMENTS ARE CONFIDENTIAL RETURN 
              INFORMATION.

    (a) Treatment as Return Information.--Paragraph (2) of section 
6103(b) of the Internal Revenue Code of 1986 (defining return 
information) is amended by striking ``and'' at the end of subparagraph 
(A), by adding ``and'' at the end of subparagraph (B), and'', and by 
inserting after subparagraph (B) the following new subparagraph:
                    ``(C) any advance pricing agreement entered into by 
                a taxpayer and the Secretary and any background 
                information related to such agreements,''.
    (b) Exception From Public Inspection as Written Determinations.--
Paragraph (1) of section 6110(b) of such Code (defining written 
determination) is amended by adding at the end the following new 
sentence: ``Such term shall not include any advance pricing agreement 
entered into by a taxpayer and the Secretary and any background 
information related to such agreements.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on January 1, 1991.

SEC. 2. REPORT ON ADVANCE PRICING AGREEMENTS AND METHODOLOGIES.

    (a) In General.--The Secretary of the Treasury shall prepare and 
publish a report for each calendar year which sets forth the following:
            (1) The number of advance pricing agreement applications 
        filed during such calendar year.
            (2) With respect to advance pricing agreements which are 
        entered into during such calendar year--
                    (A) the number of such agreements,
                    (B) the number of such agreements that were 
                bilateral or multilateral,
                    (C) the industries to which such agreements 
                applied,
                    (D) the time required to complete each such 
                agreement,
                    (E) the period for which each such agreement is 
                effective, including any retroactive period, and
                    (F) the summary of the methodology used in each 
                such agreement and a hypothetical illustration of the 
                methodology's operation.
            (3) With respect to advance pricing agreements renewed 
        during such calendar year, the information specified in 
        subparagraphs (A) through (E) of paragraph (2).
    (b) Protection of Confidentiality.--In preparing reports under this 
section, the Secretary's primary concern shall be to protect the 
identity of the taxpayer and the confidentiality of the taxpayer's 
return information, trade secrets, and any other information which 
could be used to identify the taxpayer.
    (c) Advance Pricing Agreement Contingent on Agreement on Summary of 
Methodology.--An advance pricing agreement may be entered into only if 
all parties to such agreement agree on the summary and illustration 
referred to in subsection (a)(2)(F) with respect to such agreement.
    (d) Multiple Agreements Using Same or Similar Methodology.--If 2 or 
more advance pricing agreements use the same or a similar methodology, 
the requirement of subsection (a)(2)(F) shall be met if--
            (1) the Secretary includes in the report one summary of 
        such methodology and one hypothetical illustration of such 
        methodology's operation, and
            (2) the Secretary specifies in the report the number of 
        agreements entered into during the calendar year that use such 
        methodology.
    (e) Due Date.--The report under this section for any calendar year 
shall be published in the Federal Register (and otherwise be made 
available to the public) not later than July 1 of the following 
calendar year.
    (f) Application of Section.--This section shall apply to calendar 
years beginning after the date of the enactment of this Act.
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