[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4488 Introduced in House (IH)]







107th CONGRESS
  2d Session
                                H. R. 4488

   To amend the unrelated business taxable income provisions of the 
                     Internal Revenue Code of 1986.


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                    IN THE HOUSE OF REPRESENTATIVES

                             April 18, 2002

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

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                                 A BILL


 
   To amend the unrelated business taxable income provisions of the 
                     Internal Revenue Code of 1986.

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

SECTION 1. MODIFICATIONS TO SECTION 512(B)(13).

    (a) In General.--Paragraph 13 of section 512(b) of the Internal 
Revenue Code of 1986 (relating to special rules for certain amounts 
received from controlled entities) is amended by redesignating 
subparagraph (E) as subparagraph (F) and by inserting after 
subparagraph (D) the following new subparagraph:
                    ``(E) Paragraph to apply only to excess payments.--
                            ``(i) In general.--Subparagraph (A) shall 
                        apply only to the portion of a specified 
                        payment received by the controlling 
                        organization that exceeds the amount which 
                        would have been paid if such payment met the 
                        requirements prescribed under section 482.
                            ``(ii) Addition to tax for valuation 
                        misstatements.--The tax imposed by this chapter 
                        on the controlling organization shall be 
                        increased by an amount equal to 20 percent of 
                        such excess.''.
    (b) Effective Date.--The amendments made by this section are 
effective as if included in section 1041(a) of the Taxpayer Relief Act 
of 1997 (Public Law 105-34).
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