[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 572 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 572

  To remove any doubt that split-dollar insurance arrangements are an 
 unwarranted tax avoidance scheme and are prohibited under current law.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 4, 1999

 Mr. Kleczka introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
  To remove any doubt that split-dollar insurance arrangements are an 
 unwarranted tax avoidance scheme and are prohibited under current law.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Charitable Integrity Restoration 
Act''.

SEC. 2. CLARIFICATION OF PROHIBITION OF CHARITABLE SPLIT-DOLLAR 
              INSURANCE AND OTHER PERSONAL BENEFIT ARRANGEMENTS.

    (a) In General.--Nothing in the Internal Revenue Code of 1986 or in 
any other provision of law shall be construed to permit any deduction 
under section 170, 545(b)(2), 556(b)(2), 642(c), 2055, 2106(a)(2), or 
2522 of such Code for any transfer of money or property directly or 
indirectly to a charitable organization if there is a reasonable 
expectation that as a consequence of such transfer the organization 
will directly or indirectly--
            (1) purchase a life insurance, endowment, or annuity 
        contract benefiting the donor or any designee of the donor, or
            (2) engage in any other transaction which provides a 
        personal benefit directly or indirectly to the donor or any 
        designee of the donor.
    (b) Impact on Exempt Status.--Any purchase, or the engaging in any 
transaction, which results under subsection (a) in the disallowance of 
a deduction shall be treated for purposes of section 501 of the 
Internal Revenue Code of 1986 as an expenditure which inures to the 
benefit of a private individual.
    (c) Effective Dates.--
            (1) Contributions.--Subsection (a) shall apply to all 
        contributions, whether made before, on, or after the date of 
        the enactment of this Act.
            (2) Payments, etc.--Subsection (b) shall apply to payments 
        made, and other transactions engaged in, after February 4, 
        1999.
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