[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 3153 Introduced in Senate (IS)]







107th CONGRESS
  2d Session
                                S. 3153

     To amend the Internal Revenue Code of 1986 to make technical 
                  corrections, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           November 13, 2002

  Mr. Baucus (for himself and Mr. Grassley) 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 make technical 
                  corrections, and for other purposes.

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

SECTION 1. SHORT TITLE; ETC.

    (a) Short Title.--This Act may be cited as the ``Tax Technical 
Corrections Act of 2002''.
    (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this Act an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of the Internal Revenue Code of 1986.
    (c) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; etc.
Sec. 2. Amendments related to Job Creation and Worker Assistance Act of 
                            2002.
Sec. 3. Amendments related to Economic Growth and Tax Relief 
                            Reconciliation Act of 2001.
Sec. 4. Amendment related to Victims of Terrorism Tax Relief Act of 
                            2001.
Sec. 5. Amendments related to Community Renewal Tax Relief Act of 2000.
Sec. 6. Amendments related to Taxpayer Relief Act of 1997.
Sec. 7. Other technical corrections.
Sec. 8. Clerical amendments.

SEC. 2. AMENDMENTS RELATED TO JOB CREATION AND WORKER ASSISTANCE ACT OF 
              2002.

    (a) Amendments Related to Section 101 of the Act.--
            (1) Subparagraph (A) of section 168(k)(2) is amended--
                    (A) by striking ``but only if no written binding 
                contract for the acquisition was in effect before 
                September 11, 2001,'' in clause (iii)(I), and
                    (B) by adding at the end the following new 
                sentence:
                ``Such term shall not include any property with respect 
                to which a written binding contract is in effect before 
                September 11, 2001, for the acquisition of such 
                property or, in the case of property manufactured, 
                constructed, or produced for the taxpayer's own use, 
                for the manufacture, construction, or production of 
                such property.''.
            (2) Clause (ii) of section 168(k)(2)(D) is amended--
                    (A) by inserting ``clause (iii) and'' before 
                ``subparagraph (A)(ii)'',
                    (B) by inserting ``is'' after ``if property'', and
                    (C) by striking ``is'' in subclause (I).
            (3) Subparagraph (D) of section 168(k)(2) is amended by 
        adding at the end the following new clause:
                            ``(iii) Syndication.--For purposes of 
                        subparagraph (A)(ii), if--
                                    ``(I) property is originally placed 
                                in service after September 10, 2001, by 
                                the lessor of such property,
                                    ``(II) such property is sold by 
                                such lessor or any subsequent purchaser 
                                within 3 months after the date so 
                                placed in service, and
                                    ``(III) the user of such property 
                                after the last sale during such 3-month 
                                period remains the same as when such 
                                property was originally placed in 
                                service,
                        such property shall be treated as originally 
                        placed in service not earlier than the date of 
                        such last sale.''.
    (b) Amendments Related to Section 102 of the Act.--
            (1) Subparagraph (H) of section 172(b)(1) is amended by 
        striking ``a taxpayer which has''.
            (2) In the case of a net operating loss for a taxable year 
        ending during 2001--
                    (A) an application under section 6411(a) of the 
                Internal Revenue Code of 1986 with respect to such loss 
                shall not fail to be treated as timely filed if filed 
                before November 1, 2002, and
                    (B) any election made under subsection (b)(3) or 
                (j) of section 172 of such Code may (notwithstanding 
                such subsections) be revoked before November 1, 2002.
            (3) Section 102(c)(2) of the Job Creation and Worker 
        Assistance Act of 2002 (Public Law 107-147) is amended by 
        striking ``before January 1, 2003'' and inserting ``after 
        December 31, 1995''.
            (4)(A) Subclause (I) of section 56(d)(1)(A)(i) is amended 
        by striking ``attributable to carryovers''.
            (B) Subclause (I) of section 56(d)(1)(A)(ii) is amended--
                    (i) by striking ``for taxable years'' and inserting 
                ``from taxable years'', and
                    (ii) by striking ``carryforwards'' and inserting 
                ``carryovers''.
    (c) Amendments Related to Section 301 of the Act.--
            (1) Subparagraph (D) of section 1400L(a)(2) is amended--
                    (A) by striking ``subchapter B'' and inserting 
                ``subchapter A'', and
                    (B) in clause (ii), by striking ``subparagraph 
                (B)'' and inserting ``this paragraph''.
            (2) Subparagraph (A) of section 1400L(b)(2) is amended--
                    (A) by striking ``but only if no written binding 
                contract for the acquisition was in effect before 
                September 11, 2001,'' in clause (iv), and
                    (B) by adding at the end the following new 
                sentence: ``The term `qualified New York Liberty Zone 
                property' shall not include any property with respect 
                to which a written binding contract is in effect before 
                September 11, 2001, for the acquisition of such 
                property or, in the case of property manufactured, 
                constructed, or produced for the taxpayer's own use, 
                for the manufacture, construction, or production of 
                such property.''.
            (3) Paragraph (2) of section 1400L(f) is amended by 
        inserting before the period ``, determined without regard to 
        subparagraph (C)(i) thereof''.
    (d) Amendment Related to Section 405 of the Act.--The last sentence 
of section 4006(a)(3)(E)(iii)(IV) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1306(a)(3)(E)(iii)(IV)) is amended--
            (1) by inserting ``or this subparagraph'' after ``this 
        clause'' both places it appears, and
            (2) by inserting ``(other than sections 4005, 4010, 4011, 
        and 4043)'' after ``subsections''.
    (e) Amendment Related to Section 411 of the Act.--Section 
411(c)(2)(B) of the Job Creation and Worker Assistance Act of 2002 is 
amended by striking ``Paragraph (2)'' and inserting ``Paragraph (1)''.
    (f) Effective Date.--The amendments made by this section shall take 
effect as if included in the provisions of the Job Creation and Worker 
Assistance Act of 2002 to which they relate.

SEC. 3. AMENDMENTS RELATED TO ECONOMIC GROWTH AND TAX RELIEF 
              RECONCILIATION ACT OF 2001.

    (a) Amendment Related to Section 401 of the Act.--Clause (i) of 
section 530(d)(2)(C) is amended by striking ``higher'' after 
``qualified''.
    (b) Amendment Related to Section 611 of the Act.--Section 
415(d)(4)(A) is amended by adding at the end the following new 
sentence: ``This subparagraph shall also apply for purposes of any 
provision of this title that provides for adjustments in accordance 
with the method contained in this subsection, except to the extent 
provided in such provision.''.
    (c) Amendment Related to Section 637 of the Act.--Section 
408(p)(6)(A)(i) is amended by adding at the end the following new 
sentence: ``For purposes of the preceding sentence, amounts described 
in section 6051(a)(3) shall be determined without regard to section 
3401(a)(3).''.
    (d) Effective Date.--The amendments made by this section shall take 
effect as if included in the provisions of the Economic Growth and Tax 
Relief Reconciliation Act of 2001 to which they relate.

SEC. 4. AMENDMENT RELATED TO VICTIMS OF TERRORISM TAX RELIEF ACT OF 
              2001.

    (a) Amendment Related to Section 201 of the Act.--Clause (iv) of 
section 6103(i)(7)(B) is amended by inserting ``and subparagraph (A)'' 
after ``this subparagraph''.
    (b) Effective Date.--The amendment made by this section shall take 
effect as if included in section 201 of the Victims of Terrorism Tax 
Relief Act of 2001.

SEC. 5. AMENDMENTS RELATED TO COMMUNITY RENEWAL TAX RELIEF ACT OF 2000.

    (a) Amendments Related to Section 401 of the Act.--
            (1) Subsection (c) of section 1234B is amended by adding at 
        the end the following new sentence: ``The Secretary may 
        prescribe regulations regarding the status of contracts the 
        value of which are determined directly or indirectly by 
        reference to an index which becomes (or ceases to be) a narrow-
based security index (as defined for purposes of section 
1256(g)(6)).''.
            (2) Paragraph (6) of section 1256(g) is amended by adding 
        at the end the following new sentence: ``The Secretary may 
        prescribe regulations regarding the status of options the value 
        of which are determined directly or indirectly by reference to 
        an index which becomes (or ceases to be) a narrow-based 
        security index (as so defined).''.
    (b) Effective Date.--The amendments made by this section shall take 
effect as if included in section 401 of the Community Renewal Tax 
Relief Act of 2000.

SEC. 6. AMENDMENTS RELATED TO TAXPAYER RELIEF ACT OF 1997.

    (a) Amendments Related to Section 1001 of the Act.--
            (1) Paragraph (2) of section 1259(c) is amended by striking 
        ``The term `constructive sale' shall not include any contract'' 
        and inserting ``A taxpayer shall not be treated as having made 
        a constructive sale solely because the taxpayer enters into a 
        contract''.
            (2) Subparagraphs (A) and (B)(i) of section 1259(c)(3) are 
        each amended by striking ``be treated as a constructive sale'' 
        and inserting ``cause a constructive sale''.
            (3) Clause (i) of section 1259(c)(3)(A) is amended by 
        striking ``before the end of'' and inserting ``on or before''.
            (4) Clause (ii) of section 1259(c)(3)(B) is amended by 
        striking ``substantially similar''.
            (5) Subclause (I) of section 1259(c)(3)(B)(ii) is amended 
        to read as follows:
                                    ``(I) which would (but for this 
                                subparagraph) cause the requirement of 
                                subparagraph (A)(iii) not to be met 
                                with respect to the transaction 
                                described in clause (i) of this 
                                subparagraph,''.
            (6) Subclause (II) of such section is amended by inserting 
        ``on or'' before ``before the 30th day''.
            (7) The heading for subparagraph (B) of section 1259(c)(3) 
        is amended by striking ``positions which are reestablished'' 
        and inserting ``certain closed transactions where risk of loss 
        on appreciated financial position diminished''.
    (b) Amendment Related to Section 1031 of the Act.--Section 
4261(e)(4) is amended by adding at the end the following new 
subparagraph:
                    ``(D) Special rule for amounts paid for domestic 
                segments beginning after 2002.--If an amount is paid 
                during a calendar year for a domestic segment beginning 
                in a later calendar year, then the rate of tax under 
                subsection (b) on such amount shall be the rate in 
                effect for the calendar year in which such amount is 
                paid.''
    (c) Effective Date.--
            (1) Amendments related to section 1001.--The amendments 
        made by subsection (a) shall take effect as if included in 
        section 1001 of the Taxpayer Relief Act of 1997.
            (2) Amendments related to section 1031.--The amendment made 
        by subsection (b) shall apply to segments beginning after 
        December 31, 2002.

SEC. 7. OTHER TECHNICAL CORRECTIONS.

    (a) Definition of Valid Taxpayer Identification Number for Earned 
Income Credit.--Section 32(m) is amended to read as follows:
    ``(m) Identification Numbers.--Solely for purposes of subsections 
(c)(1)(F) and (c)(3)(D), a taxpayer identification number means a 
social security number assigned by the Social Security Administration--
            ``(1) to a citizen of the United States, or
            ``(2) to an individual pursuant to subclause (I) (or that 
        portion of subclause (III) that relates to subclause (I)) of 
        section 205(c)(2)(B)(i) of the Social Security Act.''.
    (b) Effective Date.--The amendment made by this subsection shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 8. CLERICAL AMENDMENTS.

    (a) The heading for subparagraph (F) of section 168(k)(2) is 
amended by striking ``miniumum'' and inserting ``minimum''.
    (b) The item relating to section 1234B in the table of sections for 
subpart IV of subchapter P of chapter 1 is amended to read as follows:

        ``Sec. 1234B. Gains or losses from securities futures 
                            contracts.''.
    (c) Section 156(c) of the Community Renewal Tax Relief Act of 2000 
(114 Stat. 2763A-623) is amended in the first sentence by inserting 
``than'' after ``not later''.
                                 <all>