[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7300 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 7300

 To provide for the proper application under the Internal Revenue Code 
 of 1986 of the limitations on built-in losses following an ownership 
                           change of a bank.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           November 20, 2008

 Mr. Doggett (for himself, Mr. McDermott, Mr. Stark, Mr. Pascrell, and 
Mr. Lewis of Georgia) introduced the following bill; which was referred 
                   to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To provide for the proper application under the Internal Revenue Code 
 of 1986 of the limitations on built-in losses following an ownership 
                           change of a bank.

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

SECTION 1. FINDINGS.

    Congress finds as follows:
            (1) A delegation of authority to the Secretary of the 
        Treasury, or his delegate, to prescribe such regulations as may 
        be necessary or appropriate to carry out the purposes of a 
        provision of the Internal Revenue Code of 1986 does not 
        authorize the Secretary to exempt from that provision 
        transactions that would be clearly within the scope of the 
        provision.
            (2) Such an exemption is particularly troublesome when it 
        is restricted to particular industries or classes of taxpayers.
            (3) Treasury Notice 2008-83 is inconsistent with the 
        congressional intent behind delegations of regulatory authority 
        of the type described in paragraph (1).
            (4) The legal authority to prescribe Treasury Notice 2008-
        83 is doubtful.
            (5) However, as taxpayers should generally be able to rely 
        on guidance issued by the Secretary of the Treasury or his 
        delegate, legislation is necessary to clarify the force and 
        effect of Treasury Notice 2008-83 and restore the proper 
        application under the Internal Revenue Code of 1986 of the 
        limitation on built-in losses following an ownership change of 
        a bank.

SEC. 2. DETERMINATION OF FORCE AND EFFECT OF TREASURY NOTICE 2008-83 
              EXEMPTING BANKS FROM LIMITATION ON CERTAIN BUILT-IN 
              LOSSES FOLLOWING OWNERSHIP CHANGE.

    (a) In General.--Treasury Notice 2008-83--
            (1) shall be deemed to have the force and effect of law 
        with respect to any ownership change (as defined in section 
        382(g) of the Internal Revenue Code of 1986) occurring during 
        the period beginning on September 30, 2008, and ending on the 
        earlier of the date of first committee action on this bill or 
        the date on which the Chairman of the Committee on Ways and 
        Means of the House of Representatives and the Chairman of the 
        Committee on Finance of the Senate issue a joint statement 
        indicating their intention to terminate the application of such 
        notice, and
            (2) shall have no force or effect with respect to any 
        ownership change during any other period.
    (b) Binding Contracts.--Notwithstanding subsection (a), Treasury 
Notice 2008-83 shall have the force and effect of law with respect to 
any ownership change (as so defined) which occurs pursuant to a written 
binding contract entered into during the period described in subsection 
(a).

SEC. 3. INVESTIGATION OF CONFLICTS OF INTEREST.

    (a) In General.--The Inspector General of the Treasury shall 
conduct an investigation into the circumstances leading to the issuance 
of Treasury Notice 2008-83 and any conflicts of interest involving 
Treasury officials who participated in decisions regarding Treasury 
Notice 2008-83.
    (b) Report.--The Inspector General of the Treasury shall, not later 
than 6 months after the date of the enactment of this Act, report the 
results of the investigation conducted under subsection (a) to the 
Committee on Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate.
                                 <all>