[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5044 Introduced in House (IH)]







106th CONGRESS
  2d Session
                                H. R. 5044

       To amend the Internal Revenue Code of 1986 to clarify the 
confidentiality of certain documents relating to closing agreements and 
                  agreements with foreign governments.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 27, 2000

Mr. Houghton (for himself and Mr. Sam Johnson of Texas) 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 the 
confidentiality of certain documents relating to closing agreements and 
                  agreements with foreign governments.

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

SECTION 1. CONFIDENTIALITY OF CERTAIN DOCUMENTS RELATING TO CLOSING 
              AGREEMENTS AND AGREEMENTS WITH FOREIGN GOVERNMENTS.

    (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 
(B) and by inserting after subparagraph (C) the following new 
subparagraphs:
                    ``(D) any closing agreement under section 7121 and 
                any background file document related to such agreement, 
                and
                    ``(E)(i) any agreement relating to a named taxpayer 
                entered into by the Secretary with the competent 
                authority of a foreign government pursuant to--
                            ``(I) an income tax or gift and estate tax 
                        convention, or
                            ``(II) any other convention or bilateral 
                        agreement providing for the avoidance of double 
                        taxation, the prevention of fiscal evasion, 
                        nondiscrimination with respect to taxes, or the 
                        exchange of tax relevant information with the 
                        United States,
                    ``(ii) any background file information related to 
                such agreement relating to a named taxpayer,
                    ``(iii) any document implementing such agreement 
                relating to a named taxpayer, and
                    ``(iv) any application for relief under any such 
                convention or bilateral agreement,''
    (b) Exception From Public Inspection as Written Determination.--
Paragraph (1) of section 6110(b) of such Code is amended to read as 
follows:
            ``(1) Written determination.--
                    ``(A) In general.--The term `written determination` 
                means a ruling, determination letter, technical advice 
                memorandum, or Chief Counsel advice.
                    ``(B) Exceptions.--Such term shall not include any 
                agreement, document, or application referred to in 
                subparagraph (C), (D), or (E) of section 6103(b)(2).''
    (c) Expansion of Closing Agreement Authority.--Subsection (a) of 
section 7121 of such Code is amended by adding at the end the following 
new sentence: ``Such an agreement may be entered into at any time.''
    (d) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.
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