[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3812 Introduced in House (IH)]

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114th CONGRESS
  1st Session
                                H. R. 3812

     To amend the Internal Revenue Code of 1986 to provide for the 
identification of corporate tax haven countries and increased penalties 
 for tax evasion practices in haven countries that ship United States 
                 jobs overseas, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 22, 2015

 Mr. McNerney (for himself and Ms. Lee) introduced the following bill; 
which was referred to the Committee on Ways and Means, and in addition 
to the Committee on Oversight and Government Reform, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
     To amend the Internal Revenue Code of 1986 to provide for the 
identification of corporate tax haven countries and increased penalties 
 for tax evasion practices in haven countries that ship United States 
                 jobs overseas, 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 ``Stop Outsourcing and Create American 
Jobs Act of 2015''.

SEC. 2. IDENTIFYING CORPORATE TAX HAVEN COUNTRIES AND INCREASING 
              PENALTIES FOR TAX EVASION PRACTICES IN HAVEN COUNTRIES 
              THAT SHIP UNITED STATES JOBS OVERSEAS.

    Not later than one year after the date of the enactment of this 
Act, the Secretary of the Treasury shall develop and publish a list of 
countries the Secretary determines to be corporate tax haven countries. 
In developing such list, the Secretary may consider the following 
criteria:
            (1) Tax rate in the country.
            (2) Lack of effective exchange of information between 
        governments.
            (3) Lack of transparency in financial services sector.
            (4) Lack of requirements of substantial economic activity.
            (5) Incentives which may encourage a United States 
        corporation to invest abroad rather than domestically.
            (6) Other factors deemed relevant by the Secretary.
The Secretary shall review and update such list every 3 years.

SEC. 3. INCREASE IN PENALTIES FOR CORPORATE TAX EVASION PRACTICES 
              CONCERNING RETURNS, DOCUMENTS, AND ACTIVITIES RELATING TO 
              TAX HAVEN COUNTRIES.

    (a) Accuracy-Related Penalty on Underpayments.--Section 6662 of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following:
    ``(l) Increase in Penalty in Case of Tax Haven Countries.--
            ``(1) In general.--In the case of any portion of an 
        underpayment by a corporation for a taxable year which involves 
        an undisclosed foreign financial asset located in a tax haven 
        country at any time during such taxable year, subsection (a) 
        shall be applied with respect to such portion by substituting 
        `60 percent' for `20 percent'.
            ``(2) Tax haven country.--For purposes of this subsection, 
        the term `tax haven country' means a country on the list 
        published under section 2(a) of the Stop Outsourcing and Create 
        American Jobs Act of 2015.''.
    (b) Understatements With Respect to Reportable Transactions.--
Section 6662A of such Code is amended by adding at the end the 
following:
    ``(f) Increase in Penalty in Case of Tax Haven Countries.--In the 
case of any portion of a reportable transaction understatement by a 
corporation for a taxable year which involves a transaction that 
originates, terminates, or otherwise occurs in a tax haven country (as 
defined in section 6662(l)(2)), subsection (a) shall be applied with 
respect to such portion by substituting `40 percent' for `20 
percent'.''.
    (c) Fraud Penalty.--Section 6663 of such Code is amended by adding 
at the end the following:
    ``(d) Increase in Penalty in Case of Tax Haven Countries.--In the 
case of any fraud by a corporation involving an activity occurring in a 
tax haven country (as defined in section 6662(l)(2)), subsection (a) 
shall be applied by substituting `100 percent' for `75 percent'.''.
    (d) Erroneous Claim for Credit or Refund.--Section 6676 of such 
Code is amended by redesignating subsection (d) as subsection (e) and 
by inserting after subsection (c) the following new subsection:
    ``(d) Increase in Penalty in Case of Tax Haven Countries.--In the 
case of claim or credit by a corporation for any excessive amount due 
for credits or refunds involving funds held or invested in a tax haven 
country (as defined in section 6662(l)(2)), subsection (a) shall be 
applied by substituting `40 percent' for `20 percent'.''.
    (e) Willful Attempt To Evade or Defeat Tax.--Section 7201 of such 
Code is amended by adding at the end the following new sentence: ``In 
the case of an attempt by a corporation which involves a tax haven 
country (as defined in section 6662(l)(2)), the preceding sentence 
shall be applied by substituting `$1,000,000' for `$500,000'.''.
    (f) Fraud and False Statements.--Section 7206 of such Code is 
amended by adding at the end the following new sentence: ``In the case 
of an offense by a corporation described in the preceding sentence 
which involves a tax haven country (as defined in section 6662(l)(2)), 
the preceding sentence shall be applied by substituting `$1,000,000' 
for `$500,000'.''.
    (g) Fraudulent Returns, Statements, or Other Documents.--Section 
7207 of such Code is amended by adding at the end the following new 
sentence: ``In the case of an offense by a corporation described in 
either of the two preceding sentences which involves a tax haven 
country (as defined in section 6662(l)(2)), the appropriate sentence 
shall be applied by substituting `$150,000' for `$50,000'.''.
    (h) Effective Date.--
            (1) The amendments made by subsections (a) and (b) shall 
        apply to underpayments attributable to transactions entered 
        into after the date on which the list developed under section 2 
        is first published.
            (2) The amendment made by subsection (c) shall apply to 
        returns the due date for which (determined without regard to 
        extensions) is after the date on which the list developed under 
        section 2 is first published.
            (3) The amendment made by subsection (d) shall apply to 
        refunds and credits attributable to transactions entered into 
        after the date on which the list developed under section 2 is 
        first published.
            (4) The amendment made by subsections (e), (f), and (g) 
        shall apply to offenses committed after the date on which the 
        list developed under section 2 is first published.

SEC. 4. PREFERENCES IN GOVERNMENT CONTRACTS.

    (a) Preference.--A Federal department or agency may give a 
preference in the award of a contract for the procurement of goods or 
services in a fiscal year to any potential contractor that has not 
engaged in outsourcing during the fiscal year preceding the fiscal year 
in which the contract is awarded.
    (b) Requirement To Request Outsourcing Information From Potential 
Contractors.--
            (1) In general.--In any solicitation for offers for a 
        contract issued by a Federal department or agency in a fiscal 
        year, the department or agency shall request each offeror for 
        the contract to provide information regarding whether the 
        offeror engaged in outsourcing during the fiscal year preceding 
        the fiscal year in which the contract is to be awarded.
            (2) Penalty and debarment.--Any offeror found to be in 
        violation of paragraph (1), including making a false statement 
        regarding the offeror's engagement in outsourcing--
                    (A) shall, notwithstanding section 1001 of title 
                18, United States Code, be liable to the United States 
                for a civil penalty in an amount not more than the 
                value of the contract the offeror is seeking; and
                    (B) shall be debarred, by the head of the 
                department or agency soliciting the offer, from 
                contracting with the Federal Government for a period of 
                two years starting on the date on which the offeror is 
                found to be in violation of paragraph (1).
            (3) Effective date.--This subsection shall apply to 
        solicitations for contracts issued on and after the date 
        occurring one year after the date of the enactment of this Act.
    (c) Outsourcing Defined.--In this section, the term ``outsourcing'' 
means the laying off of a United States worker from a job, and the 
hiring or contracting for the same job to be performed in a foreign 
country.

SEC. 5. DEFICIT REDUCTION.

    Amounts which the Secretary of the Treasury estimates are received 
in the Treasury by reason of this Act are hereby set aside for the 
reduction of the public debt.
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