[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6275 Engrossed in House (EH)]

  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
110th CONGRESS
  2d Session
                                H. R. 6275

_______________________________________________________________________

                                 AN ACT


 
   To amend the Internal Revenue Code of 1986 to provide individuals 
   temporary relief from the alternative minimum tax, 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 ``Alternative 
Minimum Tax Relief Act of 2008''.
    (b) Reference.--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.
                     TITLE I--INDIVIDUAL TAX RELIEF

Sec. 101. Extension of increased alternative minimum tax exemption 
                            amount.
Sec. 102. Extension of alternative minimum tax relief for nonrefundable 
                            personal credits.
                      TITLE II--REVENUE PROVISIONS

Sec. 201. Income of partners for performing investment management 
                            services treated as ordinary income 
                            received for performance of services.
Sec. 202. Limitation of deduction for income attributable to domestic 
                            production of oil, gas, or primary products 
                            thereof.
Sec. 203. Limitation on treaty benefits for certain deductible 
                            payments.
Sec. 204. Returns relating to payments made in settlement of payment 
                            card and third party network transactions.
Sec. 205. Application of continuous levy to property sold or leased to 
                            the Federal Government.
Sec. 206. Time for payment of corporate estimated taxes.

                     TITLE I--INDIVIDUAL TAX RELIEF

SEC. 101. EXTENSION OF INCREASED ALTERNATIVE MINIMUM TAX EXEMPTION 
              AMOUNT.

    (a) In General.--Paragraph (1) of section 55(d) is amended--
            (1) by striking ``($66,250 in the case of taxable years 
        beginning in 2007)'' in subparagraph (A) and inserting 
        ``($69,950 in the case of taxable years beginning in 2008)'', 
        and
            (2) by striking ``($44,350 in the case of taxable years 
        beginning in 2007)'' in subparagraph (B) and inserting 
        ``($46,200 in the case of taxable years beginning in 2008)''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2007.

SEC. 102. EXTENSION OF ALTERNATIVE MINIMUM TAX RELIEF FOR NONREFUNDABLE 
              PERSONAL CREDITS.

    (a) In General.--Paragraph (2) of section 26(a) is amended--
            (1) by striking ``or 2007'' and inserting ``2007, or 
        2008'', and
            (2) by striking ``2007'' in the heading thereof and 
        inserting ``2008''.
    (b)  Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2007.

                      TITLE II--REVENUE PROVISIONS

SEC. 201. INCOME OF PARTNERS FOR PERFORMING INVESTMENT MANAGEMENT 
              SERVICES TREATED AS ORDINARY INCOME RECEIVED FOR 
              PERFORMANCE OF SERVICES.

    (a) In General.--Part I of subchapter K of chapter 1 is amended by 
adding at the end the following new section:

``SEC. 710. SPECIAL RULES FOR PARTNERS PROVIDING INVESTMENT MANAGEMENT 
              SERVICES TO PARTNERSHIP.

    ``(a) Treatment of Distributive Share of Partnership Items.--For 
purposes of this title, in the case of an investment services 
partnership interest--
            ``(1) In general.--Notwithstanding section 702(b)--
                    ``(A) any net income with respect to such interest 
                for any partnership taxable year shall be treated as 
                ordinary income for the performance of services, and
                    ``(B) any net loss with respect to such interest 
                for such year, to the extent not disallowed under 
                paragraph (2) for such year, shall be treated as an 
                ordinary loss.
        All items of income, gain, deduction, and loss which are taken 
        into account in computing net income or net loss shall be 
        treated as ordinary income or ordinary loss (as the case may 
        be).
            ``(2) Treatment of losses.--
                    ``(A) Limitation.--Any net loss with respect to 
                such interest shall be allowed for any partnership 
                taxable year only to the extent that such loss does not 
                exceed the excess (if any) of--
                            ``(i) the aggregate net income with respect 
                        to such interest for all prior partnership 
                        taxable years, over
                            ``(ii) the aggregate net loss with respect 
                        to such interest not disallowed under this 
                        subparagraph for all prior partnership taxable 
                        years.
                    ``(B) Carryforward.--Any net loss for any 
                partnership taxable year which is not allowed by reason 
                of subparagraph (A) shall be treated as an item of loss 
                with respect to such partnership interest for the 
                succeeding partnership taxable year.
                    ``(C) Basis adjustment.--No adjustment to the basis 
                of a partnership interest shall be made on account of 
                any net loss which is not allowed by reason of 
                subparagraph (A).
                    ``(D) Exception for basis attributable to purchase 
                of a partnership interest.--In the case of an 
                investment services partnership interest acquired by 
                purchase, paragraph (1)(B) shall not apply to so much 
                of any net loss with respect to such interest for any 
                taxable year as does not exceed the excess of--
                            ``(i) the basis of such interest 
                        immediately after such purchase, over
                            ``(ii) the aggregate net loss with respect 
                        to such interest to which paragraph (1)(B) did 
                        not apply by reason of this subparagraph for 
                        all prior taxable years.
                Any net loss to which paragraph (1)(B) does not apply 
                by reason of this subparagraph shall not be taken into 
                account under subparagraph (A).
                    ``(E) Prior partnership years.--Any reference in 
                this paragraph to prior partnership taxable years shall 
                only include prior partnership taxable years to which 
                this section applies.
            ``(3) Net income and loss.--For purposes of this section--
                    ``(A) Net income.--The term `net income' means, 
                with respect to any investment services partnership 
                interest, for any partnership taxable year, the excess 
                (if any) of--
                            ``(i) all items of income and gain taken 
                        into account by the holder of such interest 
                        under section 702 with respect to such interest 
                        for such year, over
                            ``(ii) all items of deduction and loss so 
                        taken into account.
                    ``(B) Net loss.--The term `net loss' means with 
                respect to such interest for such year, the excess (if 
                any) of the amount described in subparagraph (A)(ii) 
                over the amount described in subparagraph (A)(i).
    ``(b) Dispositions of Partnership Interests.--
            ``(1) Gain.--Any gain on the disposition of an investment 
        services partnership interest shall be treated as ordinary 
        income for the performance of services.
            ``(2) Loss.--Any loss on the disposition of an investment 
        services partnership interest shall be treated as an ordinary 
        loss to the extent of the excess (if any) of--
                    ``(A) the aggregate net income with respect to such 
                interest for all partnership taxable years, over
                    ``(B) the aggregate net loss with respect to such 
                interest allowed under subsection (a)(2) for all 
                partnership taxable years.
            ``(3) Disposition of portion of interest.--In the case of 
        any disposition of an investment services partnership interest, 
        the amount of net loss which otherwise would have (but for 
        subsection (a)(2)(C)) applied to reduce the basis of such 
        interest shall be disregarded for purposes of this section for 
        all succeeding partnership taxable years.
            ``(4) Distributions of partnership property.--In the case 
        of any distribution of property by a partnership with respect 
        to any investment services partnership interest held by a 
        partner--
                    ``(A) the excess (if any) of--
                            ``(i) the fair market value of such 
                        property at the time of such distribution, over
                            ``(ii) the adjusted basis of such property 
                        in the hands of the partnership,
                shall be taken into account as an increase in such 
                partner's distributive share of the taxable income of 
                the partnership (except to the extent such excess is 
                otherwise taken into account in determining the taxable 
                income of the partnership),
                    ``(B) such property shall be treated for purposes 
                of subpart B of part II as money distributed to such 
                partner in an amount equal to such fair market value, 
                and
                    ``(C) the basis of such property in the hands of 
                such partner shall be such fair market value.
        Subsection (b) of section 734 shall be applied without regard 
        to the preceding sentence.
            ``(5) Application of section 751.--In applying section 
        751(a), an investment services partnership interest shall be 
        treated as an inventory item.
    ``(c) Investment Services Partnership Interest.--For purposes of 
this section--
            ``(1) In general.--The term `investment services 
        partnership interest' means any interest in a partnership which 
        is held by any person if such person provides (directly or 
        indirectly) a substantial quantity of any of the following 
        services with respect to the assets of the partnership in the 
        conduct of the trade or business of providing such services:
                    ``(A) Advising as to the advisability of investing 
                in, purchasing, or selling any specified asset.
                    ``(B) Managing, acquiring, or disposing of any 
                specified asset.
                    ``(C) Arranging financing with respect to acquiring 
                specified assets.
                    ``(D) Any activity in support of any service 
                described in subparagraphs (A) through (C).
        For purposes of this paragraph, the term `specified asset' 
        means securities (as defined in section 475(c)(2) without 
        regard to the last sentence thereof), real estate, commodities 
        (as defined in section 475(e)(2))), or options or derivative 
        contracts with respect to securities (as so defined), real 
        estate, or commodities (as so defined).
            ``(2) Exception for certain capital interests.--
                    ``(A) In general.--If--
                            ``(i) a portion of an investment services 
                        partnership interest is acquired on account of 
                        a contribution of invested capital, and
                            ``(ii) the partnership makes a reasonable 
                        allocation of partnership items between the 
                        portion of the distributive share that is with 
                        respect to invested capital and the portion of 
                        such distributive share that is not with 
                        respect to invested capital,
                then subsection (a) shall not apply to the portion of 
                the distributive share that is with respect to invested 
                capital. An allocation will not be treated as 
                reasonable for purposes of this subparagraph if such 
                allocation would result in the partnership allocating a 
                greater portion of income to invested capital than any 
                other partner not providing services would have been 
                allocated with respect to the same amount of invested 
                capital.
                    ``(B) Special rule for dispositions.--In any case 
                to which subparagraph (A) applies, subsection (b) shall 
                not apply to any gain or loss allocable to invested 
                capital. The portion of any gain or loss attributable 
                to invested capital is the proportion of such gain or 
                loss which is based on the distributive share of gain 
                or loss that would have been allocable to invested 
                capital under subparagraph (A) if the partnership sold 
                all of its assets immediately before the disposition.
                    ``(C) Invested capital.--For purposes of this 
                paragraph, the term `invested capital' means, the fair 
                market value at the time of contribution of any money 
                or other property contributed to the partnership.
                    ``(D) Treatment of certain loans.--
                            ``(i) Proceeds of partnership loans not 
                        treated as invested capital of service 
                        providing partners.--For purposes of this 
                        paragraph, an investment services partnership 
                        interest shall not be treated as acquired on 
                        account of a contribution of invested capital 
                        to the extent that such capital is attributable 
                        to the proceeds of any loan or other advance 
                        made or guaranteed, directly or indirectly, by 
                        any partner or the partnership.
                            ``(ii) Loans from nonservice providing 
                        partners to the partnership treated as invested 
                        capital.--For purposes of this paragraph, any 
                        loan or other advance to the partnership made 
                        or guaranteed, directly or indirectly, by a 
                        partner not providing services to the 
                        partnership shall be treated as invested 
                        capital of such partner and amounts of income 
                        and loss treated as allocable to invested 
                        capital shall be adjusted accordingly.
    ``(d) Other Income and Gain in Connection With Investment 
Management Services.--
            ``(1) In general.--If--
                    ``(A) a person performs (directly or indirectly) 
                investment management services for any entity,
                    ``(B) such person holds a disqualified interest 
                with respect to such entity, and
                    ``(C) the value of such interest (or payments 
                thereunder) is substantially related to the amount of 
                income or gain (whether or not realized) from the 
                assets with respect to which the investment management 
                services are performed,
        any income or gain with respect to such interest shall be 
        treated as ordinary income for the performance of services. 
        Rules similar to the rules of subsection (c)(2) shall apply 
        where such interest was acquired on account of invested capital 
        in such entity.
            ``(2) Definitions.--For purposes of this subsection--
                    ``(A) Disqualified interest.--The term 
                `disqualified interest' means, with respect to any 
                entity--
                            ``(i) any interest in such entity other 
                        than indebtedness,
                            ``(ii) convertible or contingent debt of 
                        such entity,
                            ``(iii) any option or other right to 
                        acquire property described in clause (i) or 
                        (ii), and
                            ``(iv) any derivative instrument entered 
                        into (directly or indirectly) with such entity 
                        or any investor in such entity.
                Such term shall not include a partnership interest and 
                shall not include stock in a taxable corporation.
                    ``(B) Taxable corporation.--The term `taxable 
                corporation' means--
                            ``(i) a domestic C corporation, or
                            ``(ii) a foreign corporation subject to a 
                        comprehensive foreign income tax.
                    ``(C) Investment management services.--The term 
                `investment management services' means a substantial 
                quantity of any of the services described in subsection 
                (c)(1) which are provided in the conduct of the trade 
                or business of providing such services.
                    ``(D) Comprehensive foreign income tax.--The term 
                `comprehensive foreign income tax' means, with respect 
                to any foreign corporation, the income tax of a foreign 
                country if--
                            ``(i) such corporation is eligible for the 
                        benefits of a comprehensive income tax treaty 
                        between such foreign country and the United 
                        States, or
                            ``(ii) such corporation demonstrates to the 
                        satisfaction of the Secretary that such foreign 
                        country has a comprehensive income tax.
    ``(e) Regulations.--The Secretary shall prescribe such regulations 
as are necessary or appropriate to carry out the purposes of this 
section, including regulations to--
            ``(1) prevent the avoidance of the purposes of this 
        section, and
            ``(2) coordinate this section with the other provisions of 
        this subchapter.
    ``(f) Cross Reference.--For 40 percent no fault penalty on certain 
underpayments due to the avoidance of this section, see section 
6662.''.
    (b) Application to Real Estate Investment Trusts.--
            (1) In general.--Subsection (c) of section 856 is amended 
        by adding at the end the following new paragraph:
            ``(9) Exception from recharacterization of income from 
        investment services partnership interests.--
                    ``(A) In general.--Paragraphs (2), (3), and (4) 
                shall be applied without regard to section 710 
                (relating to special rules for partners providing 
                investment management services to partnership).
                    ``(B) Special rule for partnerships owned by 
                reits.--Section 7704 shall be applied without regard to 
                section 710 in the case of a partnership which meets 
                each of the following requirements:
                            ``(i) Such partnership is treated as 
                        publicly traded under section 7704 solely by 
                        reason of interests in such partnership being 
                        convertible into interests in a real estate 
                        investment trust which is publicly traded.
                            ``(ii) 50 percent or more of the capital 
                        and profits interests of such partnership are 
                        owned, directly or indirectly, at all times 
                        during the taxable year by such real estate 
                        investment trust (determined with the 
                        application of section 267(c)).
                            ``(iii) Such partnership meets the 
                        requirements of paragraphs (2), (3), and (4) 
                        (applied without regard to section 710).''.
            (2) Conforming amendment.--Paragraph (4) of section 7704(d) 
        is amended by inserting ``(determined without regard to section 
        856(c)(8))'' after ``856(c)(2)''.
    (c) Imposition of Penalty on Underpayments.--
            (1) In general.--Subsection (b) of section 6662 is amended 
        by inserting after paragraph (5) the following new paragraph:
            ``(6) The application of subsection (d) of section 710 or 
        the regulations prescribed under section 710(e) to prevent the 
        avoidance of the purposes of section 710.''.
            (2) Amount of penalty.--
                    (A) In general.--Section 6662 is amended by adding 
                at the end the following new subsection:
    ``(i) Increase in Penalty in Case of Property Transferred for 
Investment Management Services.--In the case of any portion of an 
underpayment to which this section applies by reason of subsection 
(b)(6), subsection (a) shall be applied with respect to such portion by 
substituting `40 percent' for `20 percent'.''.
                    (B) Conforming amendments.--Subparagraph (B) of 
                section 6662A(e)(2) is amended--
                            (i) by striking ``section 6662(h)'' and 
                        inserting ``subsection (h) or (i) of section 
                        6662'', and
                            (ii) by striking ``gross valuation 
                        misstatement penalty'' in the heading and 
                        inserting ``certain increased underpayment 
                        penalties''.
            (3) Reasonable cause exception not applicable.--Subsection 
        (c) of section 6664 is amended--
                    (A) by redesignating paragraphs (2) and (3) as 
                paragraphs (3) and (4), respectively,
                    (B) by striking ``paragraph (2)'' in paragraph (4), 
                as so redesignated, and inserting ``paragraph (3)'', 
                and
                    (C) by inserting after paragraph (1) the following 
                new paragraph:
            ``(2) Exception.--Paragraph (1) shall not apply to any 
        portion of an underpayment to which this section applies by 
        reason of subsection (b)(6).''.
    (d) Conforming Amendments.--
            (1) Subsection (d) of section 731 is amended by inserting 
        ``section 710(b)(4) (relating to distributions of partnership 
        property),'' before ``section 736''.
            (2) Section 741 is amended by inserting ``or section 710 
        (relating to special rules for partners providing investment 
        management services to partnership)'' before the period at the 
        end.
            (3) Paragraph (13) of section 1402(a) is amended--
                    (A) by striking ``other than guaranteed'' and 
                inserting ``other than--
                    ``(A) guaranteed'',
                    (B) by striking the semicolon at the end and 
                inserting ``, and'', and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(B) any income treated as ordinary income under 
                section 710 received by an individual who provides 
                investment management services (as defined in section 
                710(d)(2));''.
            (4) Paragraph (12) of section 211(a) of the Social Security 
        Act is amended--
                    (A) by striking ``other than guaranteed'' and 
                inserting ``other than--
                    ``(A) guaranteed'',
                    (B) by striking the semicolon at the end and 
                inserting ``, and'', and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(B) any income treated as ordinary income under 
                section 710 of the Internal Revenue Code of 1986 
                received by an individual who provides investment 
                management services (as defined in section 710(d)(2) of 
                such Code);''.
            (5) The table of sections for part I of subchapter K of 
        chapter 1 is amended by adding at the end the following new 
        item:

``Sec. 710. Special rules for partners providing investment management 
                            services to partnership.''.
    (e) Effective Date.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply to 
        taxable years ending after June 18, 2008.
            (2) Partnership taxable years which include effective 
        date.--In applying section 710(a) of the Internal Revenue Code 
        of 1986 (as added by this section) in the case of any 
        partnership taxable year which includes June 18, 2008, the 
        amount of the net income referred to in such section shall be 
        treated as being the lesser of the net income for the entire 
        partnership taxable year or the net income determined by only 
        taking into account items attributable to the portion of the 
        partnership taxable year which is after such date.
            (3) Dispositions of partnership interests.--Section 710(b) 
        of the Internal Revenue Code of 1986 (as added by this section) 
        shall apply to dispositions and distributions after June 18, 
        2008.
            (4) Other income and gain in connection with investment 
        management services.--Section 710(d) of such Code (as added by 
        this section) shall take effect on June 18, 2008.
            (5) Publicly traded partnerships.--For purposes of applying 
        section 7704, the amendments made by this section shall apply 
        to taxable years beginning after December 31, 2010.

SEC. 202. LIMITATION OF DEDUCTION FOR INCOME ATTRIBUTABLE TO DOMESTIC 
              PRODUCTION OF OIL, GAS, OR PRIMARY PRODUCTS THEREOF.

    (a) Denial of Deduction for Major Integrated Oil Companies for 
Income Attributable to Domestic Production of Oil, Gas, or Primary 
Products Thereof.--
            (1) In general.--Subparagraph (B) of section 199(c)(4) 
        (relating to exceptions) is amended by striking ``or'' at the 
        end of clause (ii), by striking the period at the end of clause 
        (iii) and inserting ``, or'', and by inserting after clause 
        (iii) the following new clause:
                            ``(iv) in the case of any major integrated 
                        oil company (as defined in section 
                        167(h)(5)(B)), the production, refining, 
                        processing, transportation, or distribution of 
                        oil, gas, or any primary product thereof during 
                        any taxable year described in section 
                        167(h)(5)(B).''.
            (2) Primary product.--Section 199(c)(4)(B) is amended by 
        adding at the end the following flush sentence:
                ``For purposes of clause (iv), the term `primary 
                product' has the same meaning as when used in section 
                927(a)(2)(C), as in effect before its repeal.''.
    (b) Limitation on Oil Related Qualified Production Activities 
Income for Taxpayers Other Than Major Integrated Oil Companies.--
            (1) In general.--Section 199(d) is amended by redesignating 
        paragraph (9) as paragraph (10) and by inserting after 
        paragraph (8) the following new paragraph:
            ``(9) Special rule for taxpayers with oil related qualified 
        production activities income.--
                    ``(A) In general.--If a taxpayer (other than a 
                major integrated oil company (as defined in section 
                167(h)(5)(B))) has oil related qualified production 
                activities income for any taxable year beginning after 
                2009, the amount of the deduction under subsection (a) 
                shall be reduced by 3 percent of the least of--
                            ``(i) the oil related qualified production 
                        activities income of the taxpayer for the 
                        taxable year,
                            ``(ii) the qualified production activities 
                        income of the taxpayer for the taxable year, or
                            ``(iii) taxable income (determined without 
                        regard to this section).
                    ``(B) Oil related qualified production activities 
                income.--The term `oil related qualified production 
                activities income' means for any taxable year the 
                qualified production activities income which is 
                attributable to the production, refining, processing, 
                transportation, or distribution of oil, gas, or any 
                primary product thereof during such taxable year.''.
            (2) Conforming amendment.--Section 199(d)(2) (relating to 
        application to individuals) is amended by striking ``subsection 
        (a)(1)(B)'' and inserting ``subsections (a)(1)(B) and 
        (d)(9)(A)(iii)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2008.

SEC. 203. LIMITATION ON TREATY BENEFITS FOR CERTAIN DEDUCTIBLE 
              PAYMENTS.

    (a) In General.--Section 894 (relating to income affected by 
treaty) is amended by adding at the end the following new subsection:
    ``(d) Limitation on Treaty Benefits for Certain Deductible 
Payments.--
            ``(1) In general.--In the case of any deductible related-
        party payment, any withholding tax imposed under chapter 3 (and 
        any tax imposed under subpart A or B of this part) with respect 
        to such payment may not be reduced under any treaty of the 
        United States unless any such withholding tax would be reduced 
        under a treaty of the United States if such payment were made 
        directly to the foreign parent corporation.
            ``(2) Deductible related-party payment.--For purposes of 
        this subsection, the term `deductible related-party payment' 
        means any payment made, directly or indirectly, by any person 
        to any other person if the payment is allowable as a deduction 
        under this chapter and both persons are members of the same 
        foreign controlled group of entities.
            ``(3) Foreign controlled group of entities.--For purposes 
        of this subsection--
                    ``(A) In general.--The term `foreign controlled 
                group of entities' means a controlled group of entities 
                the common parent of which is a foreign corporation.
                    ``(B) Controlled group of entities.--The term 
                `controlled group of entities' means a controlled group 
                of corporations as defined in section 1563(a)(1), 
                except that--
                            ``(i) `more than 50 percent' shall be 
                        substituted for `at least 80 percent' each 
                        place it appears therein, and
                            ``(ii) the determination shall be made 
                        without regard to subsections (a)(4) and (b)(2) 
                        of section 1563.
                A partnership or any other entity (other than a 
                corporation) shall be treated as a member of a 
                controlled group of entities if such entity is 
                controlled (within the meaning of section 954(d)(3)) by 
                members of such group (including any entity treated as 
                a member of such group by reason of this sentence).
            ``(4) Foreign parent corporation.--For purposes of this 
        subsection, the term `foreign parent corporation' means, with 
        respect to any deductible related-party payment, the common 
        parent of the foreign controlled group of entities referred to 
        in paragraph (3)(A).
            ``(5) Regulations.--The Secretary may prescribe such 
        regulations or other guidance as are necessary or appropriate 
        to carry out the purposes of this subsection, including 
        regulations or other guidance which provide for--
                    ``(A) the treatment of two or more persons as 
                members of a foreign controlled group of entities if 
                such persons would be the common parent of such group 
                if treated as one corporation, and
                    ``(B) the treatment of any member of a foreign 
                controlled group of entities as the common parent of 
                such group if such treatment is appropriate taking into 
                account the economic relationships among such 
                entities.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to payments made after the date of the enactment of this Act.

SEC. 204. RETURNS RELATING TO PAYMENTS MADE IN SETTLEMENT OF PAYMENT 
              CARD AND THIRD PARTY NETWORK TRANSACTIONS.

    (a) In General.--Subpart B of part III of subchapter A of chapter 
61 is amended by adding at the end the following new section:

``SEC. 6050W. RETURNS RELATING TO PAYMENTS MADE IN SETTLEMENT OF 
              PAYMENT CARD AND THIRD PARTY NETWORK TRANSACTIONS.

    ``(a) In General.--Each payment settlement entity shall make a 
return for each calendar year setting forth--
            ``(1) the name, address, and TIN of each participating 
        payee to whom one or more payments in settlement of reportable 
        payment transactions are made, and
            ``(2) the gross amount of the reportable payment 
        transactions with respect to each such participating payee.
Such return shall be made at such time and in such form and manner as 
the Secretary may require by regulations.
    ``(b) Payment Settlement Entity.--For purposes of this section--
            ``(1) In general.--The term `payment settlement entity' 
        means--
                    ``(A) in the case of a payment card transaction, 
                the merchant acquiring bank, and
                    ``(B) in the case of a third party network 
                transaction, the third party settlement organization.
            ``(2) Merchant acquiring bank.--The term `merchant 
        acquiring bank' means the bank or other organization which has 
        the contractual obligation to make payment to participating 
        payees in settlement of payment card transactions.
            ``(3) Third party settlement organization.--The term `third 
        party settlement organization' means the central organization 
        which has the contractual obligation to make payment to 
        participating payees of third party network transactions.
            ``(4) Special rules related to intermediaries.--For 
        purposes of this section--
                    ``(A) Aggregated payees.--In any case where 
                reportable payment transactions of more than one 
                participating payee are settled through an 
                intermediary--
                            ``(i) such intermediary shall be treated as 
                        the participating payee for purposes of 
                        determining the reporting obligations of the 
                        payment settlement entity with respect to such 
                        transactions, and
                            ``(ii) such intermediary shall be treated 
                        as the payment settlement entity with respect 
                        to the settlement of such transactions with the 
                        participating payees.
                    ``(B) Electronic payment facilitators.--In any case 
                where an electronic payment facilitator or other third 
                party makes payments in settlement of reportable 
                payment transactions on behalf of the payment 
                settlement entity, the return under subsection (a) 
                shall be made by such electronic payment facilitator or 
                other third party in lieu of the payment settlement 
                entity.
    ``(c) Reportable Payment Transaction.--For purposes of this 
section--
            ``(1) In general.--The term `reportable payment 
        transaction' means any payment card transaction and any third 
        party network transaction.
            ``(2) Payment card transaction.--The term `payment card 
        transaction' means any transaction in which a payment card is 
        accepted as payment.
            ``(3) Third party network transaction.--The term `third 
        party network transaction' means any transaction which is 
        settled through a third party payment network.
    ``(d) Other Definitions.--For purposes of this section--
            ``(1) Participating payee.--
                    ``(A) In general.--The term `participating payee' 
                means--
                            ``(i) in the case of a payment card 
                        transaction, any person who accepts a payment 
                        card as payment, and
                            ``(ii) in the case of a third party network 
                        transaction, any person who accepts payment 
                        from a third party settlement organization in 
                        settlement of such transaction.
                    ``(B) Exclusion of foreign persons.--Except as 
                provided by the Secretary in regulations or other 
                guidance, such term shall not include any person with a 
                foreign address.
                    ``(C) Inclusion of governmental units.--The term 
                `person' includes any governmental unit (and any agency 
                or instrumentality thereof).
            ``(2) Payment card.--The term `payment card' means any card 
        which is issued pursuant to an agreement or arrangement which 
        provides for--
                    ``(A) one or more issuers of such cards,
                    ``(B) a network of persons unrelated to each other, 
                and to the issuer, who agree to accept such cards as 
                payment, and
                    ``(C) standards and mechanisms for settling the 
                transactions between the merchant acquiring banks and 
                the persons who agree to accept such cards as payment.
        The acceptance as payment of any account number or other 
        indicia associated with a payment card shall be treated for 
        purposes of this section in the same manner as accepting such 
        payment card as payment.
            ``(3) Third party payment network.--The term `third party 
        payment network' means any agreement or arrangement--
                    ``(A) which involves the establishment of accounts 
                with a central organization for the purpose of settling 
                transactions between persons who establish such 
                accounts,
                    ``(B) which provides for standards and mechanisms 
                for settling such transactions,
                    ``(C) which involves a substantial number of 
                persons unrelated to such central organization who 
                provide goods or services and who have agreed to settle 
                transactions for the provision of such goods or 
                services pursuant to such agreement or arrangement, and
                    ``(D) which guarantees persons providing goods or 
                services pursuant to such agreement or arrangement that 
                such persons will be paid for providing such goods or 
                services.
        Such term shall not include any agreement or arrangement which 
        provides for the issuance of payment cards.
    ``(e) Exception for De Minimis Payments by Third Party Settlement 
Organizations.--A third party settlement organization shall be required 
to report any information under subsection (a) with respect to third 
party network transactions of any participating payee only if--
            ``(1) the amount which would otherwise be reported under 
        subsection (a)(2) with respect to such transactions exceeds 
        $10,000, and
            ``(2) the aggregate number of such transactions exceeds 
        200.
    ``(f) Statements To Be Furnished to Persons With Respect to Whom 
Information Is Required.--Every person required to make a return under 
subsection (a) shall furnish to each person with respect to whom such a 
return is required a written statement showing--
            ``(1) the name, address, and phone number of the 
        information contact of the person required to make such return, 
        and
            ``(2) the gross amount of the reportable payment 
        transactions with respect to the person required to be shown on 
        the return.
The written statement required under the preceding sentence shall be 
furnished to the person on or before January 31 of the year following 
the calendar year for which the return under subsection (a) was 
required to be made. Such statement may be furnished electronically.
    ``(g) Regulations.--The Secretary may prescribe such regulations or 
other guidance as may be necessary or appropriate to carry out this 
section, including rules to prevent the reporting of the same 
transaction more than once.''.
    (b) Penalty for Failure To File.--
            (1) Return.--Subparagraph (B) of section 6724(d)(1) is 
        amended--
                    (A) by striking ``and'' at the end of clause (xx),
                    (B) by redesignating the clause (xix) that follows 
                clause (xx) as clause (xxi),
                    (C) by striking ``and'' at the end of clause (xxi), 
                as redesignated by subparagraph (B) and inserting 
                ``or'', and
                    (D) by adding at the end the following:
                            ``(xxii) section 6050W (relating to returns 
                        to payments made in settlement of payment card 
                        transactions), and''.
            (2) Statement.--Paragraph (2) of section 6724(d) is amended 
        by inserting a comma at the end of subparagraph (BB), by 
        striking the period at the end of the subparagraph (CC) and 
        inserting ``, or'', and by inserting after subparagraph (CC) 
        the following:
                    ``(DD) section 6050W(c) (relating to returns 
                relating to payments made in settlement of payment card 
                transactions).''.
    (c) Application of Backup Withholding.--Paragraph (3) of section 
3406(b) is amended by striking ``or'' at the end of subparagraph (D), 
by striking the period at the end of subparagraph (E) and inserting ``, 
or'', and by adding at the end the following new subparagraph:
                    ``(F) section 6050W (relating to returns relating 
                to payments made in settlement of payment card 
                transactions).''.
    (d) Clerical Amendment.--The table of sections for subpart B of 
part III of subchapter A of chapter 61 is amended by inserting after 
the item relating to section 6050V the following:

``Sec. 6050W. Returns relating to payments made in settlement of 
                            payment card and third party network 
                            transactions.''.
    (e) Effective Date.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply to 
        returns for calendar years beginning after December 31, 2010.
            (2) Application of backup withholding.--
                    (A) In general.--The amendment made by subsection 
                (c) shall apply to amounts paid after December 31, 
                2011.
                    (B) Eligibility for tin matching program.--Solely 
                for purposes of carrying out any TIN matching program 
                established by the Secretary under section 3406(i) of 
                the Internal Revenue Code of 1986--
                            (i) the amendments made this section shall 
                        be treated as taking effect on the date of the 
                        enactment of this Act, and
                            (ii) each person responsible for setting 
                        the standards and mechanisms referred to in 
                        section 6050W(d)(2)(C) of such Code, as added 
                        by this section, for settling transactions 
                        involving payment cards shall be treated in the 
                        same manner as a payment settlement entity.

SEC. 205. APPLICATION OF CONTINUOUS LEVY TO PROPERTY SOLD OR LEASED TO 
              THE FEDERAL GOVERNMENT.

    (a) In General.--Paragraph (3) of section 6331(h) is amended by 
striking ``goods'' and inserting ``property''.
    (b) Effective Date.--The amendment made by this section shall apply 
to levies approved after the date of the enactment of this Act.

SEC. 206. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.

    (a) Repeal of Adjustment for 2012.--Subparagraph (B) of section 
401(1) of the Tax Increase Prevention and Reconciliation Act of 2005 is 
amended by striking the percentage contained therein and inserting 
``100 percent''.
    (b) Modification of Adjustment for 2013.--The percentage under 
subparagraph (C) of section 401(1) of the Tax Increase Prevention and 
Reconciliation Act of 2005 in effect on the date of the enactment of 
this Act is increased by 59.5 percentage points.

            Passed the House of Representatives June 25, 2008.

            Attest:

                                                                 Clerk.
110th CONGRESS

  2d Session

                               H. R. 6275

_______________________________________________________________________

                                 AN ACT

   To amend the Internal Revenue Code of 1986 to provide individuals 
   temporary relief from the alternative minimum tax, and for other 
                               purposes.