[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5463 Introduced in House (IH)]







106th CONGRESS
  2d Session
                                H. R. 5463

       To amend the Internal Revenue Code of 1986 to affirm the 
 confidentiality of closing and similar agreements and agreements with 
                          foreign governments.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 12, 2000

  Mr. Houghton (for himself, Mr. Sam Johnson of Texas, and Mr. Levin) 
 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 affirm the 
 confidentiality of closing and similar 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 AND 
              SIMILAR AGREEMENTS AND TO AGREEMENTS WITH FOREIGN 
              GOVERNMENTS.

    (a) Closing and Similar Agreements Treated 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), by inserting ``and'' at the end of subparagraph 
(C), and by inserting after subparagraph (C) the following new 
subparagraph:
                    ``(D) any agreement under section 7121, and any 
                similar agreement, and any background information 
                related to such an agreement or request for such an 
                agreement,''.
    (b) Agreements With Foreign Governments.--
            (1) In general.--Subchapter B of chapter 61 of such Code 
        (relating to miscellaneous provisions) is amended by inserting 
        after section 6104 the following new section:

``SEC. 6105. CONFIDENTIALITY OF INFORMATION ARISING UNDER TREATY 
              OBLIGATIONS.

    ``(a) In General.--Tax convention information shall not be 
disclosed.
    ``(b) Exceptions.--Subsection (a) shall not apply--
            ``(1) to the disclosure of tax convention information to 
        persons or authorities (including courts and administrative 
        bodies) which are entitled to such disclosure pursuant to a tax 
        convention,
            ``(2) to any generally applicable procedural rules 
        regarding applications for relief under a tax convention, or
            ``(3) in any case not described in paragraphs (1) or (2), 
        to the disclosure of any tax convention information not 
        relating to a particular taxpayer if the Secretary determines, 
        after consultation with each other party to the tax convention, 
        that such disclosure would not impair tax administration.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Tax convention information.--The term `tax convention 
        information' means any--
                    ``(A) agreement entered into with the competent 
                authority of one or more foreign governments pursuant 
                to a tax convention,
                    ``(B) application for relief under a tax 
                convention,
                    ``(C) any background information related to such 
                agreement or application,
                    ``(D) document implementing such agreement, and
                    ``(E) any other information exchanged pursuant to a 
                tax convention which is treated as confidential or 
                secret under the tax convention.
            ``(2) Tax convention.--The term `tax convention' means--
                    ``(A) any income tax or gift and estate tax 
                convention, or
                    ``(B) any other convention or bilateral agreement 
                (including multilateral conventions and agreements and 
                any agreement with a possession of the United States) 
                providing for the avoidance of double taxation, the 
                prevention of fiscal evasion, nondiscrimination with 
                respect to taxes, the exchange of tax relevant 
                information with the United States, or mutual 
                assistance in tax matters.
    ``(d) Cross References.--

                                ``For penalties for the unauthorized 
disclosure of tax convention information which is return or return 
information, see sections 7213, 7213A, and 7431.''.
            (2) Clerical amendment.--The table of sections for 
        subchapter B of chapter 61 of such Code is amended by inserting 
        after the item relating to section 6104 the following new item:

                              ``Sec. 6105. Confidentiality of 
                                        information arising under 
                                        treaty obligations.''.
    (c) Exception From Public Inspection as Written Determination.--
            (1) Closing and similar agreements.--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 
                matter referred to in subparagraph (C) or (D) of 
                section 6103(b)(2).''.
            (2) Agreements with foreign governments.--Paragraph (1) of 
        section 6110(l) of such Code is amended by inserting ``or 
        6105'' after ``6104''.
    (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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