[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4474 Introduced in House (IH)]







107th CONGRESS
  2d Session
                                H. R. 4474

 To amend the Internal Revenue Code of 1986 to exclude income derived 
   from certain wagers on horse races from the gross income of a non-
                       resident alien individual.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 17, 2002

 Mr. McCrery 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 exclude income derived 
   from certain wagers on horse races from the gross income of a non-
                       resident alien individual.

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

SECTION 1. EXCLUSION OF INCOME DERIVED FROM CERTAIN WAGERS ON HORSE 
              RACES FROM GROSS INCOME OF NONRESIDENT ALIEN INDIVIDUALS.

    (a) In General.--Section 872(b) of the Internal Revenue Code of 
1986 is amended by redesignating paragraphs (5), (6), and (7) as 
paragraphs (6), (7), and (8), respectively, and inserting after 
paragraph (4) the following new paragraph:
            ``(5) Income derived from wagering transactions in certain 
        parimutuel pools.--Gross income derived by a nonresident alien 
        individual from a legal wagering transaction initiated outside 
        the United States in a parimutuel pool with respect to a live 
        horse race in the United States.''.
    (b) Conforming Amendment.--Section 883(a)(4) of such Code is 
amended by striking ``(5), (6), and (7)'' and inserting ``(6), (7), and 
(8)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to proceeds from wagering transactions after September 30, 2002.
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