[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1250 Introduced in House (IH)]







108th CONGRESS
  1st Session
                                H. R. 1250

To amend the Internal Revenue Code of 1986 to modify the exemption from 
 the self-employment tax for certain termination payments received by 
                     former insurance sales agents.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 12, 2003

Mr. Ryan of Wisconsin (for himself, Mr. Weller, Mr. Kleczka, Mr. Petri, 
Mr. Green of Wisconsin, and Ms. Baldwin) 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 modify the exemption from 
 the self-employment tax for certain termination payments received by 
                     former insurance sales agents.

    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 ``Former Insurance Agents Tax Equity 
Act of 2003''.

SEC. 2. MODIFICATION OF EXEMPTION FROM SELF-EMPLOYMENT TAX FOR CERTAIN 
              TERMINATION PAYMENTS RECEIVED BY FORMER INSURANCE SALES 
              AGENTS.

    (a) Internal Revenue Code.--Paragraph (4) of section 1402(k) of the 
Internal Revenue Code of 1986 (relating to codification of treatment of 
certain termination payments received by former insurance salesmen) is 
amended to read as follows:
            ``(4) the amount of such payment depends primarily on 
        policies sold by or credited to the account of such individual 
        or the extent to which such policies remain in force for some 
        period after such termination, or both.''.
    (b) Social Security Act.--Paragraph (4) of section 211(j) of the 
Social Security Act is amended to read as follows:
            ``(4) the amount of such payment depends primarily on 
        policies sold by or credited to the account of such individual 
        or the extent to which such policies remain in force for some 
        period after such termination, or both.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to payments after December 31, 2003.
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