[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2325 Introduced in House (IH)]







108th CONGRESS
  1st Session
                                H. R. 2325

 To amend the Internal Revenue Code of 1986 to accelerate the increase 
 in the refundability of the child tax credit, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              June 4, 2003

 Ms. DeLauro (for herself, Mr. Alexander, Mr. Emanuel, Mr. Rangel, Mr. 
Hoyer, Mr. Davis of Alabama, Ms. Schakowsky, Mr. Levin, Mr. Stark, Mr. 
  Cardin, Mr. Stenholm, Mr. Jefferson, Mr. Neal of Massachusetts, Mr. 
  Lewis of Georgia, Mr. Spratt, Mr. McDermott, Mr. Brown of Ohio, Mr. 
Oberstar, Mr. Rodriguez, Mr. Olver, Mr. McGovern, Mr. George Miller of 
   California, Mr. Moran of Virginia, Mr. Capuano, Mr. Langevin, Mr. 
Menendez, Mr. Hinchey, Mr. Serrano, Mr. Gonzalez, Mr. Boucher, Mr. Ryan 
of Ohio, Ms. Slaughter, Ms. Woolsey, Mrs. Lowey, Mr. Evans, Ms. Eshoo, 
Mr. Ford, Mr. Engel, Mr. Tanner, Ms. Lee, Mrs. Davis of California, Mr. 
  Tierney, Mr. Lantos, Mr. Baird, Ms. Roybal-Allard, Mr. McNulty, Mr. 
 Sandlin, Mr. Michaud, Mr. Inslee, Mr. Markey, Mr. Grijalva, Mr. Davis 
of Florida, Mr. Blumenauer, Mr. Israel, Mr. Delahunt, Mr. Hoeffel, Mr. 
 Reyes, Mr. Clyburn, Mr. Wynn, Mr. Pallone, Ms. Bordallo, Mr. Conyers, 
   Mr. Pascrell, Ms. Solis, Mr. Cooper, Mrs. Maloney, Mr. Towns, Ms. 
  Corrine Brown of Florida, Mr. Pomeroy, Mr. Doggett, Mr. Berry, Mr. 
    Davis of Tennessee, Mr. Taylor of Mississippi, Mr. Skelton, Mr. 
  Strickland, Mr. Udall of New Mexico, Mr. DeFazio, Mr. Sanders, Ms. 
    Kaptur, Mr. Doyle, Mr. Scott of Virginia, Mr. Abercrombie, Mrs. 
  McCarthy of New York, Ms. DeGette, Mr. Acevedo-Vila, Mr. John, Mrs. 
 Capps, Mr. Crowley, Mr. Edwards, Mr. Cummings, Mr. Scott of Georgia, 
   Mr. Frost, Mr. Kucinich, Mr. Matsui, Mr. Hastings of Florida, Mr. 
   Thompson of Mississippi, Mr. Meehan, Ms. McCollum, Mr. Case, Mr. 
  Hinojosa, Mr. Holt, Mr. Owens, Mr. Cardoza, Mr. Ruppersberger, Mr. 
    Price of North Carolina, Mr. Obey, Mr. Boswell, Mr. Jackson of 
  Illinois, Mr. Lampson, Mr. Pastor, Mr. Ortiz, Mr. Becerra, and Mr. 
   Filner) 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 accelerate the increase 
 in the refundability of the child tax credit, 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.

    This Act may be cited as the ``Working Taxpayer Fairness 
Restoration Act of 2003''.

  TITLE I--ACCELERATION OF INCREASE IN REFUNDABILITY OF THE CHILD TAX 
                                 CREDIT

SEC. 101. ACCELERATION OF INCREASE IN REFUNDABILITY OF THE CHILD TAX 
              CREDIT.

    (a) In General.--Section 24(d)(1)(B)(i) of the Internal Revenue 
Code of 1986 (relating to portion of credit refundable) is amended by 
striking ``(10 percent in the case of taxable years beginning before 
January 1, 2005)''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2002.

                      TITLE II--REVENUE PROVISIONS

            Subtitle A--Enron-Related Tax Shelter Provisions

SEC. 201. LIMITATION ON TRANSFER OR IMPORTATION OF BUILT-IN LOSSES.

    (a) In General.--Section 362 of the Internal Revenue Code of 1986 
(relating to basis to corporations) is amended by adding at the end the 
following new subsection:
    ``(e) Limitations on Built-In Losses.--
            ``(1) Limitation on importation of built-in losses.--
                    ``(A) In general.--If in any transaction described 
                in subsection (a) or (b) there would (but for this 
                subsection) be an importation of a net built-in loss, 
                the basis of each property described in subparagraph 
                (B) which is acquired in such transaction shall 
                (notwithstanding subsections (a) and (b)) be its fair 
                market value immediately after such transaction.
                    ``(B) Property described.--For purposes of 
                subparagraph (A), property is described in this 
                subparagraph if--
                            ``(i) gain or loss with respect to such 
                        property is not subject to tax under this 
                        subtitle in the hands of the transferor 
                        immediately before the transfer, and
                            ``(ii) gain or loss with respect to such 
                        property is subject to such tax in the hands of 
                        the transferee immediately after such transfer.
                In any case in which the transferor is a partnership, 
                the preceding sentence shall be applied by treating 
                each partner in such partnership as holding such 
                partner's proportionate share of the property of such 
                partnership.
                    ``(C) Importation of net built-in loss.--For 
                purposes of subparagraph (A), there is an importation 
                of a net built-in loss in a transaction if the 
                transferee's aggregate adjusted bases of property 
                described in subparagraph (B) which is transferred in 
                such transaction would (but for this paragraph) exceed 
                the fair market value of such property immediately 
                after such transaction.''.
            ``(2) Limitation on transfer of built-in losses in section 
        351 transactions.--
                    ``(A) In general.--If--
                            ``(i) property is transferred by a 
                        transferor in any transaction which is 
                        described in subsection (a) and which is not 
                        described in paragraph (1) of this subsection, 
                        and
                            ``(ii) the transferee's aggregate adjusted 
                        bases of such property so transferred would 
                        (but for this paragraph) exceed the fair market 
                        value of such property immediately after such 
                        transaction,
                then, notwithstanding subsection (a), the transferee's 
                aggregate adjusted bases of the property so transferred 
                shall not exceed the fair market value of such property 
                immediately after such transaction.
                    ``(B) Allocation of basis reduction.--The aggregate 
                reduction in basis by reason of subparagraph (A) shall 
                be allocated among the property so transferred in 
                proportion to their respective built-in losses 
                immediately before the transaction.
                    ``(C) Exception for transfers within affiliated 
                group.--Subparagraph (A) shall not apply to any 
                transaction if the transferor owns stock in the 
                transferee meeting the requirements of section 
                1504(a)(2). In the case of property to which 
                subparagraph (A) does not apply by reason of the 
                preceding sentence, the transferor's basis in the stock 
                received for such property shall not exceed its fair 
                market value immediately after the transfer.''.
    (b) Comparable Treatment Where Liquidation.--Paragraph (1) of 
section 334(b) of the Internal Revenue Code of 1986 (relating to 
liquidation of subsidiary) is amended to read as follows:
            ``(1) In general.--If property is received by a corporate 
        distributee in a distribution in a complete liquidation to 
        which section 332 applies (or in a transfer described in 
        section 337(b)(1)), the basis of such property in the hands of 
        such distributee shall be the same as it would be in the hands 
        of the transferor; except that the basis of such property in 
        the hands of such distributee shall be the fair market value of 
        the property at the time of the distribution--
                    ``(A) in any case in which gain or loss is 
                recognized by the liquidating corporation with respect 
                to such property, or
                    ``(B) in any case in which the liquidating 
                corporation is a foreign corporation, the corporate 
                distributee is a domestic corporation, and the 
                corporate distributee's aggregate adjusted bases of 
                property described in section 362(e)(1)(B) which is 
                distributed in such liquidation would (but for this 
                subparagraph) exceed the fair market value of such 
                property immediately after such liquidation.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to transactions after February 13, 2003.

SEC. 202. NO REDUCTION OF BASIS UNDER SECTION 734 IN STOCK HELD BY 
              PARTNERSHIP IN CORPORATE PARTNER.

    (a) In General.--Section 755 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
    ``(c) No Allocation of Basis Decrease to Stock of Corporate 
Partner.--In making an allocation under subsection (a) of any decrease 
in the adjusted basis of partnership property under section 734(b)--
            ``(1) no allocation may be made to stock in a corporation 
        (or any person which is related (within the meaning of section 
        267(b) or 707(b)(1)) to such corporation) which is a partner in 
        the partnership, and
            ``(2) any amount not allocable to stock by reason of 
        paragraph (1) shall be allocated under subsection (a) to other 
        partnership property.
Gain shall be recognized to the partnership to the extent that the 
amount required to be allocated under paragraph (2) to other 
partnership property exceeds the aggregate adjusted basis of such other 
property immediately before the allocation required by paragraph 
(2).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to distributions after February 13, 2003.

SEC. 203. REPEAL OF SPECIAL RULES FOR FASITS.

    (a) In General.--Part V of subchapter M of chapter 1 of the 
Internal Revenue Code of 1986 (relating to financial asset 
securitization investment trusts) is hereby repealed.
    (b) Conforming Amendments.--
            (1) Paragraph (6) of section 56(g) of the Internal Revenue 
        Code of 1986 is amended by striking ``REMIC, or FASIT'' and 
        inserting ``or REMIC''.
            (2) Clause (ii) of section 382(l)(4)(B) of such Code is 
        amended by striking ``a REMIC to which part IV of subchapter M 
        applies, or a FASIT to which part V of subchapter M applies,'' 
        and inserting ``or a REMIC to which part IV of subchapter M 
        applies,''.
            (3) Paragraph (1) of section 582(c) of such Code is amended 
        by striking ``, and any regular interest in a FASIT,''.
            (4) Subparagraph (E) of section 856(c)(5) of such Code is 
        amended by striking the last sentence.
            (5) Paragraph (5) of section 860G(a) of such Code is 
        amended by adding ``and'' at the end of subparagraph (B), by 
        striking ``, and'' at the end of subparagraph (C) and inserting 
        a period, and by striking subparagraph (D).
            (6) Subparagraph (C) of section 1202(e)(4) of such Code is 
        amended by striking ``REMIC, or FASIT'' and inserting ``or 
        REMIC''.
            (7) Subparagraph (C) of section 7701(a)(19) of such Code is 
        amended by adding ``and'' at the end of clause (ix), by 
        striking ``, and'' at the end of clause (x) and inserting a 
        period, and by striking clause (xi).
            (8) The table of parts for subchapter M of chapter 1 of 
        such Code is amended by striking the item relating to part V.
    (c) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall take effect on February 
        14, 2003.
            (2) Exception for existing fasits.--The amendments made by 
        this section shall not apply to any FASIT in existence on the 
        date of the enactment of this Act to the extent that regular 
        interests issued by the FASIT before such date continue to 
        remain outstanding in accordance with the original terms of 
        issuance of such interests.

SEC. 204. EXPANDED DISALLOWANCE OF DEDUCTION FOR INTEREST ON 
              CONVERTIBLE DEBT.

    (a) In General.--Paragraph (2) of section 163(l) of the Internal 
Revenue Code of 1986 is amended by striking ``or a related party'' and 
inserting ``or equity held by the issuer (or any related party) in any 
other person''.
    (b) Exception for Certain Instruments Issued by Dealers in 
Securities.--Section 163(l) of the Internal Revenue Code of 1986 is 
amended by redesignating paragraphs (4) and (5) as paragraphs (5) and 
(6) and by inserting after paragraph (3) the following new paragraph:
            ``(4) Exception for certain instruments issued by dealers 
        in securities.--For purposes of this subsection, the term 
        `disqualified debt instrument' does not include indebtedness 
        issued by a dealer in securities (or a related party) which is 
        payable in, or by reference to, equity (other than equity of 
        the issuer or a related party) held by such dealer in its 
        capacity as a dealer in securities. For purposes of this 
        paragraph, the term `dealer in securities' has the meaning 
        given such term by section 475.''.
    (c) Conforming Amendment.--Paragraph (3) of section 163(l) of the 
Internal Revenue Code of 1986 is amended by striking ``or a related 
party'' in the material preceding subparagraph (A) and inserting ``or 
any other person''.
    (d) Effective Date.--The amendments made by this section shall 
apply to debt instruments issued after February 13, 2003.

SEC. 205. EXPANDED AUTHORITY TO DISALLOW TAX BENEFITS UNDER SECTION 
              269.

    (a) In General.--Subsection (a) of section 269 of the Internal 
Revenue Code of 1986 (relating to acquisitions made to evade or avoid 
income tax) is amended to read as follows:
    ``(a) In General.--If--
            ``(1)(A) any person acquires stock in a corporation, or
            ``(B) any corporation acquires, directly or indirectly, 
        property of another corporation and the basis of such property, 
        in the hands of the acquiring corporation, is determined by 
        reference to the basis in the hands of the transferor 
        corporation, and
            ``(2) the principal purpose for which such acquisition was 
        made is evasion or avoidance of Federal income tax by securing 
        the benefit of a deduction, credit, or other allowance,
then the Secretary may disallow such deduction, credit, or other 
allowance.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to stock and property acquired after February 13, 2003.

SEC. 206. MODIFICATIONS OF CERTAIN RULES RELATING TO CONTROLLED FOREIGN 
              CORPORATIONS.

    (a) Limitation on Exception From PFIC Rules for United States 
Shareholders of Controlled Foreign Corporations.--Paragraph (2) of 
section 1297(e) of the Internal Revenue Code of 1986 (relating to 
passive investment company) is amended by adding at the end the 
following flush sentence:
        ``Such term shall not include any period if there is only a 
        remote likelihood of an inclusion in gross income under section 
        951(a)(1)(A)(i) of subpart F income of such corporation for 
        such period.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years on controlled foreign corporation beginning after 
February 13, 2003, and to taxable years of United States shareholder in 
which or with which such taxable years of controlled foreign 
corporations end.

SEC. 207. CONTROLLED ENTITIES INELIGIBLE FOR REIT STATUS.

    (a) In General.--Subsection (a) of section 856 of the Internal 
Revenue Code of 1986 (relating to definition of real estate investment 
trust) is amended by striking ``and'' at the end of paragraph (6), by 
redesignating paragraph (7) as paragraph (8), and by inserting after 
paragraph (6) the following new paragraph:
            ``(7) which is not a controlled entity (as defined in 
        subsection (l)); and''.
    (b) Controlled Entity.--Section 856 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new subsection:
    ``(l) Controlled Entity.--
            ``(1) In general.--For purposes of subsection (a)(7), an 
        entity is a controlled entity if, at any time during the 
        taxable year, one person (other than a qualified entity)--
                    ``(A) in the case of a corporation, owns stock--
                            ``(i) possessing at least 50 percent of the 
                        total voting power of the stock of such 
                        corporation, or
                            ``(ii) having a value equal to at least 50 
                        percent of the total value of the stock of such 
                        corporation, or
                    ``(B) in the case of a trust, owns beneficial 
                interests in the trust which would meet the 
                requirements of subparagraph (A) if such interests were 
                stock.
            ``(2) Qualified entity.--For purposes of paragraph (1), the 
        term `qualified entity' means--
                    ``(A) any real estate investment trust, and
                    ``(B) any partnership in which one real estate 
                investment trust owns at least 50 percent of the 
                capital and profits interests in the partnership.
            ``(3) Attribution rules.--For purposes of this paragraphs 
        (1) and (2)--
                    ``(A) In general.--Rules similar to the rules of 
                subsections (d)(5) and (h)(3) shall apply; except that 
                section 318(a)(3)(C) shall not be applied under such 
                rules to treat stock owned by a qualified entity as 
                being owned by a person which is not a qualified 
                entity.
                    ``(B) Stapled entities.--A group of entities which 
                are stapled entities (as defined in section 269B(c)(2)) 
                shall be treated as one person.
            ``(4) Exception for certain new reits.--
                    ``(A) In general.--The term `controlled entity' 
                shall not include an incubator REIT.
                    ``(B) Incubator reit.--A corporation shall be 
                treated as an incubator REIT for any taxable year 
                during the eligibility period if it meets all the 
                following requirements for such year:
                            ``(i) The corporation elects to be treated 
                        as an incubator REIT.
                            ``(ii) The corporation has only voting 
                        common stock outstanding.
                            ``(iii) Not more than 50 percent of the 
                        corporation's real estate assets consist of 
                        mortgages.
                            ``(iv) From not later than the beginning of 
                        the last half of the second taxable year, at 
                        least 10 percent of the corporation's capital 
                        is provided by lenders or equity investors who 
                        are unrelated to the corporation's largest 
                        shareholder.
                            ``(v) The corporation annually increases 
                        the value of its real estate assets by at least 
                        10 percent.
                            ``(vi) The directors of the corporation 
                        adopt a resolution setting forth an intent to 
                        engage in a going public transaction.
                No election may be made with respect to any REIT if an 
                election under this subsection was in effect for any 
                predecessor of such REIT.
                    ``(C) Eligibility period.--
                            ``(i) In general.--The eligibility period 
                        (for which an incubator REIT election can be 
                        made) begins with the REIT's second taxable 
                        year and ends at the close of the REIT's third 
                        taxable year, except that the REIT may, subject 
                        to clauses (ii), (iii), and (iv), elect to 
                        extend such period for an additional 2 taxable 
                        years.
                            ``(ii) Going public transaction.--A REIT 
                        may not elect to extend the eligibility period 
                        under clause (i) unless it enters into an 
                        agreement with the Secretary that if it does 
                        not engage in a going public transaction by the 
                        end of the extended eligibility period, it 
                        shall pay Federal income taxes for the 2 years 
                        of the extended eligibility period as if it had 
                        not made an incubator REIT election and had 
                        ceased to qualify as a REIT for those 2 taxable 
                        years.
                            ``(iii) Returns, interest, and notice.--
                                    ``(I) Returns.--In the event the 
                                corporation ceases to be treated as a 
                                REIT by operation of clause (ii), the 
                                corporation shall file any appropriate 
                                amended returns reflecting the change 
                                in status within 3 months of the close 
                                of the extended eligibility period.
                                    ``(II) Interest.--Interest shall be 
                                payable on any tax imposed by reason of 
                                clause (ii) for any taxable year but, 
                                unless there was a finding under 
                                subparagraph (D), no substantial 
                                underpayment penalties shall be 
                                imposed.
                                    ``(III) Notice.--The corporation 
                                shall, at the same time it files its 
                                returns under subclause (I), notify its 
                                shareholders and any other persons 
                                whose tax position is, or may 
                                reasonably be expected to be, affected 
                                by the change in status so they also 
                                may file any appropriate amended 
                                returns to conform their tax treatment 
                                consistent with the corporation's loss 
of REIT status.
                                    ``(IV) Regulations.--The Secretary 
                                shall provide appropriate regulations 
                                setting forth transferee liability and 
                                other provisions to ensure collection 
                                of tax and the proper administration of 
                                this provision.
                            ``(iv) Clauses (ii) and (iii) shall not 
                        apply if the corporation allows its incubator 
                        REIT status to lapse at the end of the initial 
                        2-year eligibility period without engaging in a 
                        going public transaction if the corporation is 
                        not a controlled entity as of the beginning of 
                        its fourth taxable year. In such a case, the 
                        corporation's directors may still be liable for 
                        the penalties described in subparagraph (D) 
                        during the eligibility period.
                    ``(D) Special penalties.--If the Secretary 
                determines that an incubator REIT election was filed 
                for a principal purpose other than as part of a 
                reasonable plan to undertake a going public 
                transaction, an excise tax of $20,000 shall be imposed 
                on each of the corporation's directors for each taxable 
                year for which an election was in effect.
                    ``(E) Going public transaction.--For purposes of 
                this paragraph, a going public transaction means--
                            ``(i) a public offering of shares of the 
                        stock of the incubator REIT;
                            ``(ii) a transaction, or series of 
                        transactions, that results in the stock of the 
                        incubator REIT being regularly traded on an 
                        established securities market and that results 
                        in at least 50 percent of such stock being held 
                        by shareholders who are unrelated to persons 
                        who held such stock before it began to be so 
                        regularly traded; or
                            ``(iii) any transaction resulting in 
                        ownership of the REIT by 200 or more persons 
                        (excluding the largest single shareholder) who 
                        in the aggregate own at least 50 percent of the 
                        stock of the REIT.
                For the purposes of this subparagraph, the rules of 
                paragraph (3) shall apply in determining the ownership 
                of stock.
                    ``(F) Definitions.--The term `established 
                securities market' shall have the meaning set forth in 
                the regulations under section 897.''.
    (c) Conforming Amendment.--Paragraph (2) of section 856(h) of the 
Internal Revenue Code of 1986 is amended by striking ``and (6)'' each 
place it appears and inserting ``, (6), and (7)''.
    (d) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to taxable years ending after May 8, 2003.
            (2) Exception for existing controlled entities.--The 
        amendments made by this section shall not apply to any entity 
        which is a controlled entity (as defined in section 856(l) of 
        the Internal Revenue Code of 1986, as added by this section) as 
        of May 8, 2003, which is a real estate investment trust for the 
        taxable year which includes such date, and which has 
        significant business assets or activities as of such date. For 
        purposes of the preceding sentence, an entity shall be treated 
        as such a controlled entity on May 8, 2003, if it becomes such 
        an entity after such date in a transaction--
                    (A) made pursuant to a written agreement which was 
                binding on such date and at all times thereafter, or
                    (B) described on or before such date in a filing 
                with the Securities and Exchange Commission required 
                solely by reason of the transaction.

      Subtitle B--Extension of Internal Revenue Service User Fees

SEC. 211. EXTENSION OF INTERNAL REVENUE SERVICE USER FEES.

    (a) In General.--Chapter 77 of the Internal Revenue Code of 1986 
(relating to miscellaneous provisions) is amended by adding at the end 
the following new section:

``SEC. 7528. INTERNAL REVENUE SERVICE USER FEES.

    ``(a) General Rule.--The Secretary shall establish a program 
requiring the payment of user fees for--
            ``(1) requests to the Internal Revenue Service for ruling 
        letters, opinion letters, and determination letters, and
            ``(2) other similar requests.
    ``(b) Program Criteria.--
            ``(1) In general.--The fees charged under the program 
        required by subsection (a)--
                    ``(A) shall vary according to categories (or 
                subcategories) established by the Secretary,
                    ``(B) shall be determined after taking into account 
                the average time for (and difficulty of) complying with 
                requests in each category (and subcategory), and
                    ``(C) shall be payable in advance.
            ``(2) Exemptions, etc.--
                    ``(A) In general.--The Secretary shall provide for 
                such exemptions (and reduced fees) under such program 
                as the Secretary determines to be appropriate.
                    ``(B) Exemption for certain requests regarding 
                pension plans.--The Secretary shall not require payment 
                of user fees under such program for requests for 
                determination letters with respect to the qualified 
                status of a pension benefit plan maintained solely by 1 
                or more eligible employers or any trust which is part 
                of the plan. The preceding sentence shall not apply to 
                any request--
                            ``(i) made after the later of--
                                    ``(I) the fifth plan year the 
                                pension benefit plan is in existence, 
                                or
                                    ``(II) the end of any remedial 
                                amendment period with respect to the 
                                plan beginning within the first 5 plan 
                                years, or
                            ``(ii) made by the sponsor of any prototype 
                        or similar plan which the sponsor intends to 
                        market to participating employers.
                    ``(C) Definitions and special rules.--For purposes 
                of subparagraph (B)--
                            ``(i) Pension benefit plan.--The term 
                        `pension benefit plan' means a pension, profit-
                        sharing, stock bonus, annuity, or employee 
                        stock ownership plan.
                            ``(ii) Eligible employer.--The term 
                        `eligible employer' means an eligible employer 
                        (as defined in section 408(p)(2)(C)(i)(I)) 
                        which has at least 1 employee who is not a 
                        highly compensated employee (as defined in 
                        section 414(q)) and is participating in the 
                        plan. The determination of whether an employer 
                        is an eligible employer under subparagraph (B) 
                        shall be made as of the date of the request 
                        described in such subparagraph.
                            ``(iii) Determination of average fees 
                        charged.--For purposes of any determination of 
                        average fees charged, any request to which 
                        subparagraph (B) applies shall not be taken 
                        into account.
            ``(3) Average fee requirement.--The average fee charged 
        under the program required by subsection (a) shall not be less 
        than the amount determined under the following table:

``Category                                                  Average Fee
    Employee plan ruling and opinion..............                $250 
    Exempt organization ruling....................                $350 
    Employee plan determination...................                $300 
    Exempt organization determination.............                $275 
    Chief counsel ruling..........................                $200.
    ``(c) Termination.--No fee shall be imposed under this section with 
respect to requests made after September 30, 2013.''.
    (b) Conforming Amendments.--
            (1) The table of sections for chapter 77 of the Internal 
        Revenue Code of 1986 is amended by adding at the end the 
        following new item:

                              ``Sec. 7528. Internal Revenue Service 
                                        user fees.''.
            (2) Section 10511 of the Revenue Act of 1987 is repealed.
            (3) Section 620 of the Economic Growth and Tax Relief 
        Reconciliation Act of 2001 is repealed.
    (c) Limitations.--Notwithstanding any other provision of law, any 
fees collected pursuant to section 7528 of the Internal Revenue Code of 
1986, as added by subsection (a), shall not be expended by the Internal 
Revenue Service unless provided by an appropriations Act.
    (d) Effective Date.--The amendments made by this section shall 
apply to requests made after the date of the enactment of this Act.
                                 <all>