[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1863 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                S. 1863

To amend the Internal Revenue Code of 1986 to clarify the treatment for 
    foreign tax credit limitation purposes of certain transfers of 
                          intangible property.


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                   IN THE SENATE OF THE UNITED STATES

            December 20 (legislative day, December 18), 2001

  Mr. Graham introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to clarify the treatment for 
    foreign tax credit limitation purposes of certain transfers of 
                          intangible property.

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

SECTION 1. CLARIFICATION OF TREATMENT OF CERTAIN TRANSFERS OF 
              INTANGIBLE PROPERTY.

    (a) In General.--Subparagraph (C) of section 367(d)(2) of the 
Internal Revenue Code of 1986 (relating to transfer of intangibles 
treated as transfer pursuant to sale of contingent payments) is amended 
by adding at the end the following new sentence: ``For purposes of 
applying the various categories of income described in section 
904(d)(1), any such amount shall be treated in the same manner as if 
such amount were a royalty.''.
    (b) Effective Date; Waiver of Limitations.--
            (1) Effective date.--The amendment made by this section 
        shall take effect as if included in the amendments made by 
        section 1131(b) of the Taxpayer Relief Act of 1997.
            (2) Waiver of limitations.--If refund or credit of any 
        overpayment of tax resulting from the application of the 
        amendment made by this section is prevented at any time before 
        the close of the 1-year period beginning on the date of the 
        enactment of this Act by the operation of any law or rule of 
        law (including res judicata), such refund or credit may 
        nevertheless be made or allowed if claimed therefor is filed 
        before the close of such period.
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