117 S725 IS: Stop Tax Haven Abuse Act
U.S. Senate
2021-03-11
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.
(a)This Act may be cited as the Stop Tax Haven Abuse Act
. (b)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)The table of contents of this Act is as follows: Sec. 1. Short title, etc. TITLE I—Ending corporate offshore tax avoidance Sec. 101. Repeal of check-the-box rules for certain foreign entities and CFC look-thru rules. Sec. 102. Swap payments made from the United States to persons offshore. Sec. 103. Requirement to disclose total corporate taxes paid. Sec. 104. Penalty for election to pay tax on deferred foreign income in installments. Sec. 105. Modifications to base erosion and anti-abuse tax. Sec. 106. Treatment of foreign base company oil related income as subpart F income. Sec. 107. Modifications of foreign tax credit rules applicable to dual capacity taxpayers. Sec. 108. Treatment of intangibles transferred to partnerships. TITLE II—Additional measures to combat tax evasion Sec. 201. Authorizing special measures against foreign jurisdictions, financial institutions, and others that significantly impede United States tax enforcement. Sec. 202. Strengthening the Foreign Account Tax Compliance Act (FATCA). Sec. 203. Reporting United States beneficial owners of foreign owned financial accounts. Sec. 204. Penalty for failing to disclose offshore holdings. Sec. 205. Deadline for anti-money laundering rule for investment advisers. Sec. 206. Anti-money laundering requirements for formation agents. Sec. 207. Strengthening John Doe summons proceedings. Sec. 208. Improving enforcement of foreign financial account reporting. <enum>I</enum><header>Ending corporate offshore tax avoidance</header> <section id="HC0D1B975A6134D5A8CCD408197AB7A02"><enum>101.</enum><header>Repeal of check-the-box rules for certain foreign entities and CFC look-thru rules</header> <subsection id="H4B5B3D88482E4026B1FAB5B97EDA601A"><enum>(a)</enum><header>Check-the-Box rules</header><text>Paragraph (3) of <external-xref legal-doc="usc" parsable-cite="usc/26/7701">section 7701(a)</external-xref> is amended—</text>
<paragraph id="HC70120158C0646659D369CEBBE82D70C"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>and</quote>, and</text></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="H84962F9E303A41788D037D200420783B"><enum>(2)</enum><text display-inline="yes-display-inline">by inserting after <quote>insurance companies</quote> the following:</text>
<quoted-block style="OLC" display-inline="yes-display-inline" id="H70A73866694E4D5299ABEC3B29F52078"><text>, and any foreign business entity that—</text> <subparagraph commented="no" display-inline="no-display-inline" id="H20A1EAAD985149F0BCFDCF1284C93862"><enum>(A)</enum><text display-inline="yes-display-inline">has a single owner that does not have limited liability, or</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H8CC95E935CB44158B592B6AA76B6FF4C"><enum>(B)</enum><text display-inline="yes-display-inline">has one or more members all of which have limited liability</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection commented="no" display-inline="no-display-inline" id="HB19BCC7B3DE44063A16AC4C6EF7CCDEF"><enum>(b)</enum><header>Look-Thru rule</header><text>Subparagraph (C) of <external-xref legal-doc="usc" parsable-cite="usc/26/954">section 954(c)(6)</external-xref> is amended to read as follows:</text>
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<subparagraph commented="no" display-inline="no-display-inline" id="HF99F42D51F0344D483B6B0FE6D3BC95E"><enum>(C)</enum><header>Termination</header><text>Subparagraph (A) shall not apply to dividends, interest, rents, and royalties received or accrued after the date of the enactment of the <short-title>Stop Tax Haven Abuse Act</short-title>.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HF00FB3DFC5AE409EAF78B86C648DCAEB"><enum>(c)</enum><header>Effective date</header> <paragraph id="H89F66E894F2045C588302FC7FF4A746E"><enum>(1)</enum><text>The amendments made by subsection (a) shall take effect on the date of the enactment of this Act.</text></paragraph>
<paragraph id="HE4BD002780764C9D8D98308C62BB647F"><enum>(2)</enum><text>The amendment made by subsection (b) shall apply to payments received after the date of the enactment of this Act.</text></paragraph></subsection></section> <section id="H7755A7ED13DF4095999FAA196F85A2F9"><enum>102.</enum><header>Swap payments made from the United States to persons offshore</header> <subsection id="H4D4331FEFD724B719666C5B4EB7F14FA"><enum>(a)</enum><header>Tax on swap payments received by foreign persons</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/871">Section 871(a)(1)</external-xref> is amended—</text>
<paragraph id="HF84856EFFAAA40218429F404063BD0A4"><enum>(1)</enum><text>by inserting <quote>swap payments (as identified in section 1256(b)(2)(B)),</quote> after <quote>annuities,</quote> in subparagraph (A), and</text></paragraph> <paragraph id="HE622EE1CE12048D4B834C145E2300CD5"><enum>(2)</enum><text>by adding at the end the following new sentence: <quote>In the case of swap payments, the source of a swap payment is determined by reference to the location of the payor.</quote>.</text></paragraph></subsection>
<subsection id="HBC9DD28B8A904091B35D7840DD8F5F37"><enum>(b)</enum><header>Tax on swap payments received by foreign corporations</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/881">Section 881(a)</external-xref> is amended—</text> <paragraph id="HFDF2CD2DBD5D421584C3D8AFCFA021DC"><enum>(1)</enum><text>by inserting <quote>swap payments (as identified in section 1256(b)(2)(B)),</quote> after <quote>annuities,</quote> in paragraph (1), and</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HA4D7128484B442B59F64668B27AED309"><enum>(2)</enum><text>by adding at the end the following new sentence: <quote>In the case of swap payments, the source of a swap payment is determined by reference to the location of the payor.</quote>.</text></paragraph></subsection></section> <section id="H0AE90B8B72FE4E2688AB26D9577C81D8"><enum>103.</enum><header>Requirement to disclose total corporate taxes paid</header> <subsection id="H90C51714A7134EF8988312082E3AD10B"><enum>(a)</enum><header>In general</header><text>Section 13 of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78m">15 U.S.C. 78m</external-xref>) is amended by adding at the end the following new subsection:</text>
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<subsection id="H49ED3316F21E46A8A77E3780EDD380CD"><enum>(s)</enum><header>Disclosure of total corporate taxes paid</header>
<paragraph id="HB80483712FD34DAFA5537E7194248248"><enum>(1)</enum><header>Issuer disclosure requirement</header><text>Each issuer required to file an annual or quarterly report under subsection (a) shall disclose in that report—</text> <subparagraph id="HDC240D9519CA4856B3B2F766DFD7689C"><enum>(A)</enum><text>the total pre-tax profit of the issuer during the period covered by the report;</text></subparagraph>
<subparagraph id="HB421371352ED418EB44BC1160EE5E117"><enum>(B)</enum><text>the total amount paid by the issuer in State taxes during the period covered by the report;</text></subparagraph> <subparagraph id="HF4EEF5D7E3BD415BBD34DBC566E7A073"><enum>(C)</enum><text>the total amount paid by the issuer in Federal taxes during the period covered by the report; and</text></subparagraph>
<subparagraph id="HC350D4AD4C3744C9BEE09C1A6231A467"><enum>(D)</enum><text>the total amount paid by the issuer in foreign taxes during the period covered by the report.</text></subparagraph></paragraph> <paragraph id="H6D7259E329C04AB494766D020B543E2C"><enum>(2)</enum><header>Disclosure of country-by-country reporting information</header><text>Each issuer required to file an annual or quarterly report under subsection (a) shall disclose in that report, for each of its subsidiaries and aggregated on a country-by-country basis—</text>
<subparagraph id="H463632A8E46B4201B16E8CFE792764E8"><enum>(A)</enum><text>revenues generated from transactions with other constituent entities;</text></subparagraph> <subparagraph id="H1AB5C6A8155C4250AF67798ABE0B64A0"><enum>(B)</enum><text>revenues not generated from transactions with other constituent entities;</text></subparagraph>
<subparagraph id="H44708B1F03A048F887A57BCBA58A28E1"><enum>(C)</enum><text>profit or loss before income tax;</text></subparagraph> <subparagraph id="H8C4E1D3A737B4B4F94EF8DFA16DCD053"><enum>(D)</enum><text>total income tax paid on a cash basis to all tax jurisdictions, and any taxes withheld on payments received by the constituent entities;</text></subparagraph>
<subparagraph id="HEBD3C3FE3E824AA6A957310450CD88C3"><enum>(E)</enum><text>total accrued tax expense recorded on taxable profits or losses, reflecting only operations in the relevant annual period and excluding deferred taxes or provisions for uncertain tax liabilities;</text></subparagraph> <subparagraph id="H18DDC8575A3C4997B34A14C6802415CF"><enum>(F)</enum><text>stated capital, except that the stated capital of a permanent establishment must be reported in the tax jurisdiction of residence of the legal entity of which it is a permanent establishment unless there is a defined capital requirement in the permanent establishment tax jurisdiction for regulatory purposes;</text></subparagraph>
<subparagraph id="H77BF7515DDE64AA4B40563C6E118A4AC"><enum>(G)</enum><text>total accumulated earnings, except that accumulated earnings of a permanent establishment must be reported by the legal entity of which it is a permanent establishment;</text></subparagraph> <subparagraph id="H852E669F281741558A3EEE708FFEF44D"><enum>(H)</enum><text>total number of employees on a full-time equivalent basis; and</text></subparagraph>
<subparagraph id="H2DCD2D86D2194A2A9D0EF8186AF01DD8"><enum>(I)</enum><text>net book value of tangible assets, which, for purposes of this section, does not include cash or cash equivalents, intangibles, or financial assets.</text></subparagraph></paragraph> <paragraph id="HADC6B4823B8C428D8145D4A9B2519E26"><enum>(3)</enum><header>Availability of information</header><text>The Commission shall make the information filed with the Commission pursuant to this subsection publicly available through the Commission website in a manner that is searchable, sortable, and downloadable.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H142CE933A2F34F71ADEBE712FAA26E09"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to disclosures made after the date of the enactment of this Act.</text></subsection></section> <section id="HD752F86BEB4B4B34816C05367DE0D19D"><enum>104.</enum><header>Penalty for election to pay tax on deferred foreign income in installments</header> <subsection id="HA3B7E6BF984C45C393216C8B2C95BCBC"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/965">Section 965(h)</external-xref> is amended by adding at the end the following new paragraph:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="H03FB6FE17BF14FBE826FD2798FDEE270">
<paragraph id="HBED48A2C642349919B3A8DD14F85C942"><enum>(7)</enum><header>Penalty</header><text display-inline="yes-display-inline">Interest on installments under this subsection shall be payable as determined under section 6601 by treating the last date prescribed for payment for any installment as the date for payment of the first installment under this subsection.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H58F328FB96914A108236677451D310AB"><enum>(b)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendment made by subsection (a) shall take effect as if included in section 14103 of <external-xref legal-doc="public-law" parsable-cite="pl/115/97">Public Law 115–97</external-xref>.</text></subsection></section>
<section id="HF6FCC5786149438CBA0E75D016D6F2AE"><enum>105.</enum><header>Modifications to base erosion and anti-abuse tax</header>
<subsection id="H460835FAD5C640158A62B225E6C5B4A0"><enum>(a)</enum><header>Reduction of exemption based on annual gross receipts</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/59A">Section 59A(e)(1)(B)</external-xref> is amended by striking <quote>$500,000,000</quote> and inserting <quote>$100,000,000</quote>.</text></subsection> <subsection id="H2D98B451C096436B9BD2308ED2A8357A"><enum>(b)</enum><header>Elimination of exception based on base erosion percentage</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/59">Section 59(e)(1)</external-xref> is amended by inserting <quote>and</quote> at the end of subparagraph (A), by striking <quote>, and</quote> at the end of subparagraph (B) and inserting a period, and by striking subparagraph (C).</text></subsection>
<subsection id="H4668A2D57EC14517993BFD5E45E3AADC"><enum>(c)</enum><header>Certain capitalized amounts included as base erosion payments</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/59A">Section 59A(d)</external-xref> is amended by redesignating paragraphs (4) and (5) as paragraphs (5) and (6), respectively, and by inserting after paragraph (3) the following new paragraph:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="HBEEAA0D61B744204AB3E2B21B1F22BEE"> <paragraph id="H95A62136391948E0AB767DD86D57A1B4"><enum>(4)</enum><header>Certain capitalized amounts</header><text display-inline="yes-display-inline">Such term shall also include any interest, royalty, or any other amount identified by the Secretary that is paid or accrued by the taxpayer to a foreign person which is a related party of the taxpayer and with respect to which the taxpayer increases the value of property under section 1016 or any other provision of this title.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HAF1DC7A2061242ADB7164BC914BB2889"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.</text></subsection></section> <section id="HD50901874B5D4EBC8030246188A897CB"><enum>106.</enum><header>Treatment of foreign base company oil related income as subpart F income</header> <subsection id="HAF0F0F7F0DD747B388677F2B4961D361"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/954">Section 954(a)</external-xref> is amended by striking <quote>and</quote> at the end of paragraph (2), by striking the period at the end of paragraph (3) and inserting <quote>, and</quote>, and by adding at the end the following new paragraph:</text>
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<paragraph id="H4F5A5344D27B4B25A6ADA3A7FDC8CF6E"><enum>(4)</enum><text>the foreign base company oil related income for the taxable year (determined under subsection (g) and reduced as provided in subsection (b)(5)).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HC829B966A8734A5CB300A3897E139F0F"><enum>(b)</enum><header>Foreign base company oil related income</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/954">Section 954</external-xref> is amended by inserting after subsection (e) the following new subsection:</text>
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<subsection id="HBDFB71F0940A40B6992CF1E8CCA0D98B"><enum>(g)</enum><header>Foreign base company oil related income</header><text>For purposes of this section, the term <term>foreign base company oil related income</term> means foreign oil related income (within the meaning of paragraphs (2) and (3) of section 907(c)) other than income derived from a source within a foreign country in connection with—</text> <paragraph id="HDAEB150FD09E42B8B9F3600CE1A73891"><enum>(1)</enum><text>oil or gas which was extracted from an oil or gas well located in such foreign country, or</text></paragraph>
<paragraph id="HB668163E2ACD4575B9266033E1F9EC62"><enum>(2)</enum><text>oil, gas, or a primary product of oil or gas which is sold by the foreign corporation or a related person for use or consumption within such country or is loaded in such country on a vessel or aircraft as fuel for such vessel or aircraft.</text></paragraph><continuation-text continuation-text-level="subsection">Such term shall not include any foreign personal holding company income (as defined in subsection (c)).</continuation-text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HCBBFD61F69BA41ED984397A81F16C75A"><enum>(c)</enum><header>Conforming amendments</header> <paragraph id="H4AD996C7305F4BC0850F399A3B9F4529"><enum>(1)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/952">Section 952(c)(1)(B)(iii)</external-xref> is amended by redesignating subclauses (III) and (IV) as subclauses (IV) and (V), respectively, and by inserting after subclause (II) the following new subclause:</text>
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<subclause id="HC0ED620252074CA087EF6FC8EC20BDB2"><enum>(III)</enum><text>foreign base company oil related income.</text></subclause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H576D3D18984E4F4C95D6FDFF53567132"><enum>(2)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/954">Section 954(b)</external-xref> is amended—</text>
<subparagraph id="H9EFAB739EF0C4DEB8AADCF903D1548CF"><enum>(A)</enum><text>by striking <quote>and the foreign base company services income</quote> in paragraph (5) and inserting <quote>the foreign base company services income, and the foreign base company oil related income</quote>, and</text></subparagraph> <subparagraph id="HF6A30C58E4614290953DFE00876BD08B"><enum>(B)</enum><text>by adding at the end the following new paragraph:</text>
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<paragraph id="H83F15E9D53D54770A389D690580421C5"><enum>(6)</enum><header>Foreign base company oil related income not treated as another kind of base company income</header><text>Income of a corporation which is foreign base company oil related income shall not be considered foreign base company income of such corporation under paragraph (2) or (3) of subsection (a).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection> <subsection commented="no" id="H5BA50A3F345242FFBFF5BE01764722B5"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years of foreign corporations beginning after the date of the enactment of this Act, and to taxable years of United States shareholders in which or with which such taxable years of foreign corporations end.</text></subsection></section>
<section id="H8BDF30CB2F044564ACD2DC70A5428139"><enum>107.</enum><header>Modifications of foreign tax credit rules applicable to dual capacity taxpayers</header>
<subsection id="H5A79C18F78734E70A96A4FAE6076E824"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/901">Section 901</external-xref> of the Internal Revenue Code of 1986 is amended by redesignating subsection (n) as subsection (o) and by inserting after subsection (m) the following new subsection:</text> <quoted-block style="OLC" id="HB8ACAD76F0194E378384562619CE2E6F"> <subsection id="H932F54340CC04836A18941C54981440F"><enum>(n)</enum><header>Special rules relating to dual capacity taxpayers</header> <paragraph id="HB52908233B0A4B0FB582249D06DA4FCC"><enum>(1)</enum><header>General rule</header><text>Notwithstanding any other provision of this chapter, any amount paid or accrued by a dual capacity taxpayer to a foreign country or possession of the United States for any period with respect to combined foreign oil and gas income (as defined in section 907(b)(1)) shall not be considered a tax to the extent such amount exceeds the amount (determined in accordance with regulations) which would have been required to be paid if the taxpayer were not a dual capacity taxpayer.</text></paragraph>
<paragraph id="HD6F00FE15A4C43E6AE455C475546F57E"><enum>(2)</enum><header>Dual capacity taxpayer</header><text>For purposes of this subsection, the term <term>dual capacity taxpayer</term> means, with respect to any foreign country or possession of the United States, a person who—</text> <subparagraph id="HACE3E02F565F4CB09635813E742E6947"><enum>(A)</enum><text>is subject to a levy of such country or possession, and</text></subparagraph>
<subparagraph id="H876A69B336B346F2B4EA6F94F5BC7438"><enum>(B)</enum><text>receives (or will receive) directly or indirectly a specific economic benefit (as determined in accordance with regulations) from such country or possession.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H12021CE076974E4A98944D85C65159A4"><enum>(b)</enum><header>Effective date</header> <paragraph id="H7576462862B9489FBFDD600B11BDAC97"><enum>(1)</enum><header>In general</header><text>The amendments made by this section shall apply to taxes paid or accrued in taxable years beginning after December 31, 2020.</text></paragraph>
<paragraph id="H2C7B7868E4F2440ABFFE667402264AE0"><enum>(2)</enum><header>Contrary treaty obligations upheld</header><text>The amendments made by this section shall not apply to the extent contrary to any treaty obligation of the United States.</text></paragraph></subsection></section> <section id="H9902CF9650B64991A7CEEB73BE613F20"><enum>108.</enum><header>Treatment of intangibles transferred to partnerships</header> <subsection id="H30D1C20E9E2C47048C3D8FF0462D25CE"><enum>(a)</enum><header>Repeal of certain regulatory authority</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/367">Section 367(d)</external-xref> is amended by striking paragraph (3).</text></subsection>
<subsection id="H7DE513AD1BA84CACBAB1AAAD0E765831"><enum>(b)</enum><header>Exception to rules providing nonrecognition of gain</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/721">Section 721(d)</external-xref> is amended to read as follows:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="HB5CB98E9CC6E42A39F5357B96732F64C"> <subsection id="HB4F7C91D73DA447E815986354951A38C"><enum>(d)</enum><header>Certain transfers of intangible property to partnerships</header> <paragraph id="H832890CE58844A70AED557AAA82577C8"><enum>(1)</enum><header>In general</header><text>Except as provided in regulations prescribed by the Secretary, if a United States person transfers any intangible property within the meaning of section 367(d)(4) to a specified partnership in an exchange described in this section, subsection (a) shall not apply to the transfer of such property and the provisions of section 367(d)(2) shall apply to such transfer.</text></paragraph>
<paragraph id="H191BCC6941674B499C34A84C4AB77932"><enum>(2)</enum><header>Specified partnership</header><text>For purposes of this subsection, the term <quote>specified partnership</quote> means any partnership if any item of income or gain attributable to intangible property is taken into account in determining any distributive share of such partnership to a person that is not a United States person.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H1BFE10B9A57C4B6D974C22FBE7FE52F9"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to transfers after the date of the enactment of this Act, in taxable years ending after such date.</text></subsection></section>
<enum>II</enum><header>Additional measures to combat tax evasion</header>
<section id="HB5B081A7F7E545A1B07EC13A1A5F222D"><enum>201.</enum><header>Authorizing special measures against foreign jurisdictions, financial institutions, and others that significantly impede United States tax enforcement</header>
<subsection id="HA7FF7B09C8414A46A7D3E8A0D9F6797F"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 5318A of title 31, United States Code, is amended—</text> <paragraph id="HCBEA6EACF4BB4E63913F5EC666F71B27"><enum>(1)</enum><text>by striking the section heading and inserting the following: <quote><header-in-text level="section" style="USC">Special measures for jurisdictions, financial institutions, or international transactions that are of primary money laundering concern or significantly impede United States tax enforcement</header-in-text></quote>;</text></paragraph>
<paragraph id="HECC084C71F2F4967AA105A3019E113C0"><enum>(2)</enum><text>in subsection (a), by striking the subsection heading and inserting the following: <quote><header-in-text level="subsection" style="USC">Special measures To counter money laundering and efforts To significantly impede united states tax enforcement</header-in-text></quote>;</text></paragraph> <paragraph id="H8BD36FEFB6EA43AB8F12723A111CD2B0"><enum>(3)</enum><text>in subsection (c)—</text>
<subparagraph id="H3135816903DA44828685FAD5A83E858A"><enum>(A)</enum><text>by striking the subsection heading and inserting the following: <quote><header-in-text level="subsection" style="USC">Consultations and information To be considered in finding jurisdictions, institutions, types of accounts, or transactions To be of primary money laundering concern or To be significantly impeding United States tax enforcement</header-in-text></quote>; and</text></subparagraph> <subparagraph id="H921BAC2F183643E8AC00186C7EA84468"><enum>(B)</enum><text>in paragraph (2), by adding at the end the following:</text>
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<subparagraph id="HD1409067EA1141528E69880A3F5C03A5"><enum>(C)</enum><header>Other considerations</header><text>The fact that a jurisdiction or financial institution is cooperating with the United States on implementing the requirements specified in <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/4">chapter 4</external-xref> of the Internal Revenue Code of 1986 may be favorably considered in evaluating whether such jurisdiction or financial institution is significantly impeding United States tax enforcement.</text></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="HDD31654E45D941BF9CA29CC871113682"><enum>(4)</enum><text>in subsection (a)(1), by inserting <quote>or is significantly impeding United States tax enforcement</quote> after <quote>primary money laundering concern</quote>;</text></paragraph>
<paragraph id="H74E4CD6D12BB47CBB7ECEDADECDA57E7"><enum>(5)</enum><text>in subsection (a)(4)—</text> <subparagraph id="H9891F6B8E5824EF7874E235E3DF51D78"><enum>(A)</enum><text>in subparagraph (A)—</text>
<clause id="HF7CBF5FF779A4EA6987BE99F0AB16794"><enum>(i)</enum><text>by inserting <quote>in matters involving money laundering,</quote> before <quote>shall consult</quote>; and</text></clause> <clause id="HC91814E4012A4C0A9D678CE44E04D285"><enum>(ii)</enum><text>by striking <quote>and</quote> at the end;</text></clause></subparagraph>
<subparagraph id="H7DEE6BBC60884192B0721DCE57AB48EC"><enum>(B)</enum><text>by redesignating subparagraph (B) as subparagraph (C); and</text></subparagraph> <subparagraph id="HAF277768C42841549AE842105E2261ED"><enum>(C)</enum><text>by inserting after subparagraph (A) the following:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="H69E96398CC194423961B599C89CC39DC">
<subparagraph id="HB61444AE474942B2B6FDD77E6A7915F6"><enum>(B)</enum><text>in matters involving United States tax enforcement, shall consult with the Commissioner of Internal Revenue, the Secretary of State, the Attorney General of the United States, and in the sole discretion of the Secretary, such other agencies and interested parties as the Secretary may find to be appropriate; and</text></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="HEB152C334BD84BB6A9281EB6C68D6BE5"><enum>(6)</enum><text>in each of paragraphs (1)(A), (2), (3), and (4) of subsection (b), by inserting <quote>or to be significantly impeding United States tax enforcement</quote> after <quote>primary money laundering concern</quote> each place that term appears;</text></paragraph>
<paragraph id="H26D04433B5B6454FBFD9877776721B26"><enum>(7)</enum><text>in subsection (b), by striking paragraph (5) and inserting the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="HBEA82714D68D4D59AF6C9AB76ABBA360"> <paragraph id="HA8D0A03E59DD4F8CA332C579A46D50FE"><enum>(5)</enum><header>Prohibitions or conditions on opening or maintaining certain correspondent or payable-through accounts or authorizing certain payment cards</header><text>If the Secretary finds a jurisdiction outside of the United States, 1 or more financial institutions operating outside of the United States, or 1 or more classes of transactions within or involving a jurisdiction outside of the United States to be of primary money laundering concern or to be significantly impeding United States tax enforcement, the Secretary, in consultation with the Secretary of State, the Attorney General of the United States, and the Chairman of the Board of Governors of the Federal Reserve System, may prohibit, or impose conditions upon—</text>
<subparagraph id="H157F1E35B13441FAA22BC5FBC583361F"><enum>(A)</enum><text display-inline="yes-display-inline">the opening or maintaining in the United States of a correspondent account or payable-through account by any domestic financial institution or domestic financial agency for or on behalf of a foreign banking institution, if such correspondent account or payable-through account involves any such jurisdiction or institution, or if any such transaction may be conducted through such correspondent account or payable-through account; or</text></subparagraph> <subparagraph id="H7015B99092774F8C929B2F307EA0186B"><enum>(B)</enum><text>the authorization, approval, or use in the United States of a credit card, charge card, debit card, or similar credit or debit financial instrument by any domestic financial institution, domestic financial agency, or credit card company or association for or on behalf of a foreign banking institution, if such credit card, charge card, debit card, or similar credit or debit financial instrument involves any such jurisdiction or institution, or if any such transaction may be conducted through such credit card, charge card, debit card, or similar credit or debit financial instrument.</text></subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></paragraph>
<paragraph id="H1B77608CDC244CE59104D26FB8ED3198"><enum>(8)</enum><text>in subsection (c)(1), by inserting <quote>or is significantly impeding United States tax enforcement</quote> after <quote>primary money laundering concern</quote>;</text></paragraph> <paragraph id="H4BFF426A4FDC4181A90DEED035DF98F4"><enum>(9)</enum><text>in subsection (c)(2)(A)—</text>
<subparagraph id="HE1A4B658BF194E9FB68F74E8F4F25A19"><enum>(A)</enum><text>in clause (ii), by striking <quote>bank secrecy or special regulatory advantages</quote> and inserting <quote>bank, tax, corporate, trust, or financial secrecy or regulatory advantages</quote>;</text></subparagraph> <subparagraph id="H19CE1A3085854643ADB55D37A4CE1CC9"><enum>(B)</enum><text>in clause (iii), by striking <quote>supervisory and counter-money</quote> and inserting <quote>supervisory, international tax enforcement, and counter-money</quote>;</text></subparagraph>
<subparagraph id="H281A4033EA584FECAEA91C57554C49BF"><enum>(C)</enum><text>in clause (v), by striking <quote>banking or secrecy</quote> and inserting <quote>banking, tax, or secrecy</quote>; and</text></subparagraph> <subparagraph id="H96E431E518704A6CB14DFA92BA90E60B"><enum>(D)</enum><text>in clause (vi), by inserting <quote>, tax treaty, or tax information exchange agreement</quote> after <quote>treaty</quote>;</text></subparagraph></paragraph>
<paragraph id="H138011AFF2D44DB4BCBD69667B7615B2"><enum>(10)</enum><text>in subsection (c)(2)(B)—</text> <subparagraph id="H8A47ECF984DE40E3BF2533055A74F7A6"><enum>(A)</enum><text>in clause (i), by inserting <quote>or tax evasion</quote> after <quote>money laundering</quote>; and</text></subparagraph>
<subparagraph id="H6B1FA05F80864F6F86F5C2C58F70C65A"><enum>(B)</enum><text>in clause (iii), by inserting <quote>, tax evasion,</quote> after <quote>money laundering</quote>; and</text></subparagraph></paragraph> <paragraph id="H06B6FE9B0F7B4E978A26B2CDB348512A"><enum>(11)</enum><text>in subsection (d), by inserting <quote>involving money laundering, and shall notify, in writing, the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives of any such action involving United States tax enforcement</quote> after <quote>such action</quote>.</text></paragraph></subsection>
<subsection id="H5EDDFA39AF2F4C17B1FB274E0D864C84"><enum>(b)</enum><header>Clerical amendment</header><text>The table of contents for <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/31/53">chapter 53</external-xref> of title 31, United States Code, is amended by striking the item relating to section 5318A and inserting the following:</text> <quoted-block style="USC" display-inline="no-display-inline" id="H321AD93D094F4B2486F9E66DA87D90EF"> <toc regeneration="no-regeneration"> <toc-entry level="section">5318A. Special measures for jurisdictions, financial institutions, or international transactions that are of primary money laundering concern or significantly impede United States tax enforcement.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section> <section commented="no" display-inline="no-display-inline" id="HE95CC80F96E24CF793325281911B3E69"><enum>202.</enum><header>Strengthening the Foreign Account Tax Compliance Act (FATCA)</header> <subsection commented="no" display-inline="no-display-inline" id="H98443D3162794D63AF3F832A45463289"><enum>(a)</enum><header>Reporting activities with respect to passive foreign investment companies</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/1298">Section 1298(f)</external-xref> is amended by inserting <quote>, or who directly or indirectly forms, transfers assets to, is a beneficiary of, has a beneficial interest in, or receives money or property or the use thereof from,</quote> after <quote>shareholder of</quote>.</text></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H282C2EF369804C5A9804646B721428B6"><enum>(b)</enum><header>Withholdable payments to foreign financial institutions</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/1471">Section 1471(d)</external-xref> is amended—</text> <paragraph commented="no" display-inline="no-display-inline" id="H4DAA598CA0EA4D0EB4E060C1F0C7F3CE"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (2)(A), by inserting <quote>or transaction</quote> after <quote>any depository</quote>, and</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H6CB2B4426A7C41278695B1E1AE8D9390"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (5)(C), by striking <quote>or any interest</quote> and all that follows and inserting <quote>derivatives, or any interest (including a futures or forward contract, swap, or option) in such securities, partnership interests, commodities, or derivatives.</quote>.</text></paragraph></subsection> <subsection commented="no" display-inline="no-display-inline" id="H25275FEEB03B44059F8F38D3269C8B76"><enum>(c)</enum><header>Withholdable payments to other foreign financial institutions</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/1472">Section 1472</external-xref> is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H6F850786BB144375ACC530474150D834"><enum>(1)</enum><text display-inline="yes-display-inline">by inserting <quote>as a result of any customer identification, anti-money laundering, anti-corruption, or similar obligation to identify account holders,</quote> after <quote>reason to know,</quote> in subsection (b)(2), and</text></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="H32CD42CD91504F759E082A0D80E84A60"><enum>(2)</enum><text display-inline="yes-display-inline">by inserting <quote>as posing a low risk of tax evasion</quote> after <quote>this subsection</quote> in subsection (c)(1)(G).</text></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H06B4F04ED80F407183DF4394A41F0BCE"><enum>(d)</enum><header>Definitions</header><text display-inline="yes-display-inline">Clauses (i) and (ii) of section 1473(2)(A) are each amended by inserting <quote>or as a beneficial owner</quote> after <quote>indirectly</quote>.</text></subsection> <subsection commented="no" display-inline="no-display-inline" id="H8DCDF9110C6340BE91F9CA7BBC2567A3"><enum>(e)</enum><header>Special rules</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/1474">Section 1474(c)</external-xref> is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HF88ED2E40DE14D8085F90BEB97A104F3"><enum>(1)</enum><text display-inline="yes-display-inline">by inserting <quote>, except that information provided under section 1471(c) or 1472(b) may be disclosed to any Federal law enforcement agency, upon request or upon the initiation of the Secretary, to investigate or address a possible violation of United States law</quote> after <quote>shall apply</quote> in paragraph (1), and</text></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="HB2F4B4A6237B43FCA87F7894618D2BFE"><enum>(2)</enum><text display-inline="yes-display-inline">by inserting <quote>, or has had an agreement terminated under such section,</quote> after <quote>section 1471(b)</quote> in paragraph (2).</text></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H5581582C33FD4DF189DEDB5A7C921462"><enum>(f)</enum><header>Information with respect to foreign financial assets</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/6038D">Section 6038D(a)</external-xref> is amended by inserting <quote>ownership or beneficial ownership</quote> after <quote>holds any</quote>.</text></subsection> <subsection id="H2FB563D06EA64B5789DE1B832E7509DC"><enum>(g)</enum><header>Establishing presumptions for entities and transactions involving non-FATCA institutions</header> <paragraph id="H0C09D018DC804C51ABBCF2D09FB90FF4"><enum>(1)</enum><header>Presumptions for tax purposes</header> <subparagraph id="H96FCC4EF86AC4B639B25CEF9B41EC8C5"><enum>(A)</enum><header>In general</header><text><external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/76">Chapter 76</external-xref> is amended by inserting after section 7491 the following new subchapter:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="HEBB11E70523B46A3A663DF004DBC370C">
<subchapter id="H0045A9C750E04DAF81B5B73FD83D7CCA"><enum>F</enum><header>Presumptions for certain legal proceedings</header>
<toc>
<toc-entry idref="H3C426325882741DFBB7A89D98154B80B" level="section">Sec. 7492. Presumptions pertaining to entities and transactions involving non-FATCA institutions.</toc-entry></toc>
<section id="H3C426325882741DFBB7A89D98154B80B"><enum>7492.</enum><header>Presumptions pertaining to entities and transactions involving non-FATCA institutions</header>
<subsection id="HF30C66A728234067B9C05D5B3DD99F92"><enum>(a)</enum><header>Control</header><text>For purposes of any United States civil judicial or administrative proceeding to determine or collect tax, there shall be a rebuttable presumption that a United States person who, directly or indirectly, formed, transferred assets to, was a beneficiary of, had a beneficial interest in, or received money or property or the use thereof from an entity, including a trust, corporation, limited liability company, partnership, or foundation, that holds an account, or in any other manner has assets, in a non-FATCA institution, exercised control over such entity. The presumption of control created by this subsection shall not be applied to prevent the Secretary from determining or arguing the absence of control.</text></subsection> <subsection id="H5324F12AC38340D492ADCA85C4B5A576"><enum>(b)</enum><header>Transfers of income</header><text>For purposes of any United States civil judicial or administrative proceeding to determine or collect tax, there shall be a rebuttable presumption that any amount or thing of value received by a United States person directly or indirectly from an account or from an entity that holds an account, or in any other manner has assets, in a non-FATCA institution, constitutes income of such person taxable in the year of receipt; and any amount or thing of value paid or transferred by or on behalf of a United States person directly or indirectly to an account, or entity that holds an account, or in any other manner has assets, in a non-FATCA institution, represents previously unreported income of such person taxable in the year of the transfer.</text></subsection>
<subsection id="H21368F0AE529474F86FCE808D6367A4D"><enum>(c)</enum><header>Rebutting the presumptions</header><text>The presumptions established in this section may be rebutted only by clear and convincing evidence, including detailed documentary, testimonial, and transactional evidence, establishing that—</text> <paragraph id="H62C6AB57D2FC4C0985C04C451ED2A89F"><enum>(1)</enum><text>in subsection (a), such taxpayer exercised no control, directly or indirectly, over account or entity at the time in question, and</text></paragraph>
<paragraph id="H6AA6CB70EEA54FD2A51780516F3B2E52"><enum>(2)</enum><text>in subsection (b), such amounts or things of value did not represent income related to such United States person.</text></paragraph><continuation-text continuation-text-level="subsection">Any court having jurisdiction of a civil proceeding in which control of such an offshore account or offshore entity or the income character of such receipts or amounts transferred is an issue shall prohibit the introduction by the taxpayer of any foreign based document that is not authenticated in open court by a person with knowledge of such document, or any other evidence supplied by a person outside the jurisdiction of a United States court, unless such person appears before the court.</continuation-text></subsection></section></subchapter><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph> <subparagraph id="HDED958D39CC9417899DB3D703E49F637"><enum>(B)</enum><text>The table of subchapters for <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/76">chapter 76</external-xref> is amended by inserting after the item relating to subchapter E the following new item:</text>
<quoted-block style="OLC" id="HFB5DD70FC33E42F6AB8280AE60B1789F">
<toc>
<toc-entry idref="H0045A9C750E04DAF81B5B73FD83D7CCA" level="subchapter">Subchapter F. Presumptions for certain legal proceedings</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph>
<paragraph id="H18F4FCE4659A44DEBA0A8763B2703191"><enum>(2)</enum><header>Definition of non-fatca institution</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/7701">Section 7701(a)</external-xref> is amended by adding at the end the following new paragraph:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H4164C23FAFB740CAB5886638B4C30DB2"> <paragraph id="H7B0B1EAEF55A411C8091F56F704763C1"><enum>(51)</enum><header>Non-fatca institution</header><text>The term <term>non-FATCA institution</term> means any foreign financial institution that does not meet the reporting requirements of section 1471(b).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph>
<paragraph commented="no" id="HB86FECB3839641479D641D3C954B2FDB"><enum>(3)</enum><header>Presumptions for securities law purposes</header><text>Section 21 of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78u">15 U.S.C. 78u</external-xref>) is amended by adding at the end the following new subsection:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H6ACD29CF3F7E4BAAA2E0E4DAAB89A9DD"> <subsection id="H1DA55649A2BA4348930E4C7D67F9F3F6"><enum>(j)</enum><header>Presumptions pertaining to control and beneficial ownership</header> <paragraph id="H8BAAE422F81847669706FD211E962D68"><enum>(1)</enum><header>Control</header><text>For purposes of any civil judicial or administrative proceeding under this title, there shall be a rebuttable presumption that a United States person who, directly or indirectly, formed, transferred assets to, was a beneficiary of, had a beneficial interest in, or received money or property or the use thereof from an entity, including a trust, corporation, limited liability company, partnership, or foundation, that holds an account, or in any other manner has assets, in a non-FATCA institution (as defined in <external-xref legal-doc="usc" parsable-cite="usc/26/7701">section 7701(a)(51)</external-xref> of the Internal Revenue Code of 1986), exercised control over such entity. The presumption of control created by this paragraph shall not be applied to prevent the Commission from determining or arguing the absence of control.</text></paragraph>
<paragraph id="HCD1580E6A34046FFBCC27D26514DAF82"><enum>(2)</enum><header>Beneficial ownership</header><text>For purposes of any civil judicial or administrative proceeding under this title, there shall be a rebuttable presumption that securities that are nominally owned by an entity, including a trust, corporation, limited liability company, partnership, or foundation, and that are held in a non-FATCA institution (as so defined), are beneficially owned by any United States person who directly or indirectly exercised control over such entity. The presumption of beneficial ownership created by this paragraph shall not be applied to prevent the Commission from determining or arguing the absence of beneficial ownership.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H656CF54B03064EB696258086F92DBCAA"><enum>(4)</enum><header>Presumption for reporting purposes relating to foreign financial accounts</header><text>Section 5314 of title 31, United States Code, is amended by adding at the end the following new subsection:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="H0110DFBF5A554B93BA8800486389CC70">
<subsection id="H34143BC87C574C63A03D62E5FB92C918"><enum>(d)</enum><header>Rebuttable presumption</header><text>For purposes of this section, there shall be a rebuttable presumption that any account with a non-FATCA institution (as defined in <external-xref legal-doc="usc" parsable-cite="usc/26/7701">section 7701(a)(51)</external-xref> of the Internal Revenue Code of 1986) contains funds in an amount that is at least sufficient to require a report prescribed by regulations under this section.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H15E159489A7D4E4799D447E976FA766B"><enum>(5)</enum><header>Regulatory authority</header><text>Not later than 180 days after the date of enactment of this Act, the Secretary of the Treasury and the Chairman of the Securities and Exchange Commission shall each adopt regulations or other guidance necessary to implement the amendments made by this subsection. The Secretary and the Chairman may, by regulation or guidance, provide that the presumption of control shall not extend to particular classes of transactions, such as corporate reorganizations or transactions below a specified dollar threshold, if either determines that applying such amendments to such transactions is not necessary to carry out the purposes of such amendments.</text></paragraph></subsection>
<subsection id="HA24765CBF5274BF8B50CFF651761A2F5"><enum>(h)</enum><header>Effective date</header><text>The amendments made by this section shall take effect on the date which is 180 days after the date of enactment of this Act, whether or not regulations are issued under subsection (g)(5).</text></subsection></section> <section commented="no" display-inline="no-display-inline" id="HC46AF015B4C245308DA2BD7444FA644E"><enum>203.</enum><header>Reporting United States beneficial owners of foreign owned financial accounts</header> <subsection id="H954ADECCDB654513BD87104EA9F77C74"><enum>(a)</enum><header>In general</header><text>Subpart B of part III of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/61">chapter 61</external-xref> is amended by inserting after section 6045B the following new sections:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="H1AAB589B92814A8BAAF54562D6454790">
<section id="HD176B1A9BC8E418E86801F17DC0AC4B1"><enum>6045C.</enum><header>Returns regarding United States beneficial owners of financial accounts located in the United States and held in the name of a foreign entity</header>
<subsection id="H1A7374C1374A45AE8B7CADF816506807"><enum>(a)</enum><header>Requirement of return</header><text>If—</text> <paragraph id="H9ADCD740652944B0927A7E395E0BF4BD"><enum>(1)</enum><text>any withholding agent under sections 1441 and 1442 has the control, receipt, custody, disposal, or payment of any amount constituting gross income from sources within the United States of any foreign entity, including a trust, corporation, limited liability company, partnership, or foundation (other than an entity with shares regularly traded on an established securities market), and</text></paragraph>
<paragraph id="HF61CD83A997F4AB199EB0F780E0BA630"><enum>(2)</enum><text>such withholding agent determines for purposes of title 14, 18, or 31 of the United States Code that a United States person has any beneficial interest in the foreign entity or in the account in such entity's name (hereafter in this section referred to as <term>United States beneficial owner</term>),</text></paragraph><continuation-text continuation-text-level="subsection">then the withholding agent shall make a return according to the forms or regulations prescribed by the Secretary.</continuation-text></subsection> <subsection id="H33EBAD6C767B4EA2BED1AE89772B1406"><enum>(b)</enum><header>Required information</header><text>For purposes of subsection (a) the information required to be included on the return shall include—</text>
<paragraph id="HD0967C9181BA4454AB9DA53D7D65C52F"><enum>(1)</enum><text>the name, address, and, if known, the taxpayer identification number of the United States beneficial owner,</text></paragraph> <paragraph id="H77F6F14B50A0447CABF078AFA4124E81"><enum>(2)</enum><text>the known facts pertaining to the relationship of such United States beneficial owner to the foreign entity and the account,</text></paragraph>
<paragraph id="H259E656130B44959A43B60A8BB506802"><enum>(3)</enum><text>the gross amount of income from sources within the United States (including gross proceeds from brokerage transactions), and</text></paragraph> <paragraph id="H34FC2EBEEB114C99B2F500F5BBCA07EE"><enum>(4)</enum><text>such other information as the Secretary may by forms or regulations provide.</text></paragraph></subsection>
<subsection id="HD22583049DCF4D4187D553635E9C5595"><enum>(c)</enum><header>Statements To Be furnished to beneficial owners with respect to whom information is required To Be reported</header><text>A withholding agent required to make a return under subsection (a) shall furnish to each United States beneficial owner whose name is required to be set forth in such return a statement showing—</text> <paragraph id="H1ED5F80E78BC4B768004B6D5DDA68599"><enum>(1)</enum><text>the name, address, and telephone number of the information contact of the person required to make such return, and</text></paragraph>
<paragraph id="H031DF7DDF14C4E5797DD66CC02E8AFF7"><enum>(2)</enum><text>the information required to be shown on such return with respect to such United States beneficial owner.</text></paragraph><continuation-text continuation-text-level="subsection">The written statement required under the preceding sentence shall be furnished to the United States beneficial owner on or before January 31 of the year following the calendar year for which the return under subsection (a) was required to be made. In the event the person filing such return does not have a current address for the United States beneficial owner, such written statement may be mailed to the address of the foreign entity.</continuation-text></subsection></section> <section id="HFE0D0F22D6A84E5BB5D13C928716059F"><enum>6045D.</enum><header>Returns by financial institutions regarding establishment of accounts at non-FATCA institutions</header> <subsection id="HA19CB4DF28214B3B90340F29C5288F79"><enum>(a)</enum><header>Requirement of return</header><text>Any financial institution directly or indirectly opening a bank, brokerage, or other financial account for or on behalf of an offshore entity, including a trust, corporation, limited liability company, partnership, or foundation (other than an entity with shares regularly traded on an established securities market), in a non-FATCA institution (as defined in section 7701(a)(51)) at the direction of, on behalf of, or for the benefit of a United States person shall make a return according to the forms or regulations prescribed by the Secretary.</text></subsection>
<subsection id="HB5D0D4963CA4447D8A8DF990ED08B8BC"><enum>(b)</enum><header>Required information</header><text>For purposes of subsection (a) the information required to be included on the return shall include—</text> <paragraph id="H6751D2C01CA0452EA1CBC3E3269E42D2"><enum>(1)</enum><text>the name, address, and taxpayer identification number of such United States person,</text></paragraph>
<paragraph id="H49D6735AE8054F598224CB828BA639C8"><enum>(2)</enum><text>the name and address of the financial institution at which a financial account is opened, the type of account, the account number, the name under which the account was opened, and the amount of the initial deposit,</text></paragraph> <paragraph id="H8FE8808756824C5DB7AF005BFFEBA8B6"><enum>(3)</enum><text>if the account is held in the name of an entity, the name and address of such entity, the type of entity, and the name and address of any company formation agent or other professional employed to form or acquire the entity, and</text></paragraph>
<paragraph id="HDF1818E60DA24D508E4452B3FE4931C9"><enum>(4)</enum><text>such other information as the Secretary may by forms or regulations provide.</text></paragraph></subsection> <subsection id="H3EEE05F9BEE047B6A562812B5442CE12"><enum>(c)</enum><header>Statements To be furnished to United States persons with respect to whom information is required To be reported</header><text>A financial institution required to make a return under subsection (a) shall furnish to each United States person whose name is required to be set forth in such return a statement showing—</text>
<paragraph id="HB84F47D873944C03BEEA9AFA9E1F7908"><enum>(1)</enum><text>the name, address, and telephone number of the information contact of the person required to make such return, and</text></paragraph> <paragraph id="HB9C67B123DCC45F5A4CE19E6FCC622C6"><enum>(2)</enum><text>the information required to be shown on such return with respect to such United States person.</text></paragraph><continuation-text continuation-text-level="subsection">The written statement required under the preceding sentence shall be furnished to such United States 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.</continuation-text></subsection>
<subsection id="HB72E67E5C5164E09934F18F94EA9AC25"><enum>(d)</enum><header>Exemption</header><text>The Secretary may by regulations exempt any class of United States persons or any class of accounts or entities from the requirements of this section if the Secretary determines that applying this section to such persons, accounts, or entities is not necessary to carry out the purposes of this section.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HADCC1BFF083244D983C6784A4EDCF3CF"><enum>(b)</enum><header>Penalties</header> <paragraph id="H29A97D17649D4F86A5CFB0ABE59972FA"><enum>(1)</enum><header>Returns</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6724">Section 6724(d)(1)(B)</external-xref> is amended by striking <quote>or</quote> at the end of clause (xxv), by striking <quote>and</quote> at the end of clause (xxvi), and by adding after clause (xxvi) the following new clauses:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="H1EC913CF69E94283ACDE4576734AEB1E">
<clause id="H0A5B9F043A5247E9870B8340DCE947A2"><enum>(xxvii)</enum><text>section 6045C(a) (relating to returns regarding United States beneficial owners of financial accounts located in the United States and held in the name of a foreign entity), or</text></clause> <clause id="H2D92A907B4484D388AA6EFF42E6C54C2"><enum>(xxviii)</enum><text>section 6045D(a) (relating to returns by financial institutions regarding establishment of accounts at non-FATCA institutions), and</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph>
<paragraph id="H2371198D9513401389617708EE44F40B"><enum>(2)</enum><header>Payee statements</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6724">Section 6724(d)(2)</external-xref> is amended by redesignating the second subparagraph (JJ) as (KK), by striking <quote>or</quote> at the end of subparagraph (JJ), by striking the period at the end of subparagraph (KK), and by inserting after subparagraph (KK) the following new subparagraphs:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H45866E62776F4F7FA0BD1BD56F515575"> <subparagraph id="HA3C63148999449CF812B5F98FC70EF77"><enum>(LL)</enum><text>section 6045C(c) (relating to returns regarding United States beneficial owners of financial accounts located in the United States and held in the name of a foreign entity), or</text></subparagraph>
<subparagraph id="HE3E15004F3244DCA8FCC5C3B69E9B51D"><enum>(MM)</enum><text>section 6045D(c) (relating to returns by financial institutions regarding establishment of accounts at non-FATCA institutions).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="HA02E46BC43324AA7A3A02955AAF22117"><enum>(c)</enum><header>Clerical amendment</header><text>The table of sections for subpart B of part III of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/61">chapter 61</external-xref> is amended by inserting after the item relating to section 6045B the following new items:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="HC404534B1DD94650B08AA06368B55BA8">
<toc>
<toc-entry bold="off" level="section">Sec. 6045C. Returns regarding United States beneficial owners of financial accounts located in the United States and held in the name of a foreign entity.</toc-entry>
<toc-entry bold="off" level="section">Sec. 6045D. Returns by financial institutions regarding establishment of accounts at non-FATCA institutions.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection commented="no" id="H6312E418C2AE4BD99AB28AF381FEF8F2"><enum>(d)</enum><header>Additional penalties</header>
<paragraph commented="no" id="H9C5D92B0727245D2AE17125D05BCA916"><enum>(1)</enum><header>Additional penalties on banks</header><text>Section 5239(b)(1) of the Revised Statutes of the United States (<external-xref legal-doc="usc" parsable-cite="usc/12/93">12 U.S.C. 93(b)(1)</external-xref>) is amended by inserting <quote>or any of the provisions of <external-xref legal-doc="usc" parsable-cite="usc/26/6045D">section 6045D</external-xref> of the Internal Revenue Code of 1986,</quote> after <quote>any regulation issued pursuant to,</quote>.</text></paragraph> <paragraph commented="no" id="HA3BA3CCB38DD4F68808E76429C6EE6E1"><enum>(2)</enum><header>Additional penalties on securities firms</header><text>Section 21(d)(3)(A) of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78u">15 U.S.C. 78u(d)(3)(A)</external-xref>) is amended by inserting <quote>any of the provisions of <external-xref legal-doc="usc" parsable-cite="usc/26/6045D">section 6045D</external-xref> of the Internal Revenue Code of 1986,</quote> after <quote>the rules or regulations thereunder,</quote>.</text></paragraph></subsection>
<subsection id="H78E03697A9944F17A51FCEE7A99EF711"><enum>(e)</enum><header>Regulatory authority and effective date</header>
<paragraph id="HA68FBD503B804486BAEF7AEC7FAA6A29"><enum>(1)</enum><header>Regulatory Authority</header><text>Not later than 180 days after the date of the enactment of this Act, the Secretary of the Treasury shall adopt regulations, forms, or other guidance necessary to implement this section.</text></paragraph> <paragraph id="HE122D15C0CFC40208E755DB89408FBB9"><enum>(2)</enum><header>Effective Date</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/6045C">Section 6045C</external-xref> of the Internal Revenue Code of 1986 (as added by this section) and the amendment made by subsection (d)(1) shall take effect with respect to amounts paid into foreign owned accounts located in the United States after December 31 of the year of the date of the enactment of this Act. Section 6045D of such Code (as so added) and the amendment made by subsection (d)(2) shall take effect with respect to accounts opened after December 31 of the year of the date of the enactment of this Act. Section 6045D of such Code (as so added) and the amendment made by subsection (d)(2) shall take effect with respect to accounts opened after December 31 of the year of the date of the enactment of this Act, whether or not regulations are issued under Section 6045D.</text></paragraph></subsection></section>
<section id="HF3E5C6F61002460DAA6F596F8D71E73D"><enum>204.</enum><header>Penalty for failing to disclose offshore holdings</header>
<subsection id="H3CD8509FD8CD485788EB3420F855D84D"><enum>(a)</enum><header>Securities Exchange Act of 1934</header><text>Section 21(d)(3)(B) of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78u">15 U.S.C. 78u(d)(3)(B)</external-xref>) is amended by adding at the end the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="HA0F2F3BE23C5425F878FAE5079F5656D"> <clause id="H2253C5F61FA24516B6A0116DC54E0A0D"><enum>(iv)</enum><header>Fourth tier</header><text>Notwithstanding clauses (i), (ii), and (iii), for each such violation, the amount of penalty shall not exceed $1,000,000 for any natural person or $10,000,000 for any other person, if—</text>
<subclause id="HF8231521FFCD49AFAD1B1D93A1F1AB3D"><enum>(I)</enum><text>such person directly or indirectly controlled any foreign entity, including any trust, corporation, limited liability company, partnership, or foundation through which an issuer purchased, sold, or held equity or debt instruments;</text></subclause> <subclause id="H4B934EDD7C88408796563D9D41F0D4AF"><enum>(II)</enum><text>such person knowingly or recklessly failed to disclose any such holding, purchase, or sale by the issuer; and</text></subclause>
<subclause id="H4C559D4F01454ADF8F5C297F59C43173"><enum>(III)</enum><text>the holding, purchase, or sale would have been otherwise subject to disclosure by the issuer or such person under this title.</text></subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HC44151936E28433796950C369ADD27B3"><enum>(b)</enum><header>Securities Act of 1933</header><text>Section 20(d)(2) of the Securities Act of 1933 (<external-xref legal-doc="usc" parsable-cite="usc/15/77t">15 U.S.C. 77t(d)(2)</external-xref>) is amended by adding at the end the following:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="HE2DE151EB4464825B289820C2F65AC7C">
<subparagraph id="H8C9DCFA4B34A4CE98B589FF29153E404"><enum>(D)</enum><header>Fourth tier</header><text>Notwithstanding subparagraphs (A), (B), and (C), for each such violation, the amount of penalty shall not exceed $1,000,000 for any natural person or $10,000,000 for any other person, if—</text> <clause id="H6CCFDCE1FF854C08AC16ABE4C112F388"><enum>(i)</enum><text>such person directly or indirectly controlled any foreign entity, including any trust, corporation, limited liability company, partnership, or foundation through which an issuer purchased, sold, or held equity or debt instruments;</text></clause>
<clause id="H79EB1B041A9E42AA8573A35FE575D0A9"><enum>(ii)</enum><text>such person knowingly or recklessly failed to disclose any such holding, purchase, or sale by the issuer; and</text></clause> <clause id="HD3A954E6701F4A969717C7D2B6FB8F14"><enum>(iii)</enum><text>the holding, purchase, or sale would have been otherwise subject to disclosure by the issuer or such person under this title.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HE7BF7ECE3BFF46479D33F9F8298E52A3"><enum>(c)</enum><header>Investment Advisers Act of 1940</header><text>Section 203(i)(2) of the Investment Advisers Act of 1940 (<external-xref legal-doc="usc" parsable-cite="usc/15/80b-3">15 U.S.C. 80b–3(i)(2)</external-xref>) is amended by adding at the end the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="HAFE60323A0064A3A946DB7F11947F0F3"> <subparagraph id="HC0D393FE1FFB4902A073A2FC113CDAF9"><enum>(D)</enum><header>Fourth tier</header><text>Notwithstanding subparagraphs (A), (B), and (C), for each such violation, the amount of penalty shall not exceed $1,000,000 for any natural person or $10,000,000 for any other person, if—</text>
<clause id="H4894D7C8D93F43E9A5EDDE90240AE3C2"><enum>(i)</enum><text>such person directly or indirectly controlled any foreign entity, including any trust, corporation, limited liability company, partnership, or foundation through which an issuer purchased, sold, or held equity or debt instruments;</text></clause> <clause id="H7EFDC15E59924B6B9D37C85E286E69CD"><enum>(ii)</enum><text>such person knowingly or recklessly failed to disclose any such holding, purchase, or sale by the issuer; and</text></clause>
<clause id="HC48745AFDB9F49C59F4F3EF1A3FA16D0"><enum>(iii)</enum><text>the holding, purchase, or sale would have been otherwise subject to disclosure by the issuer or such person under this title.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section> <section id="H074ABBFAB0BA43758810AB60E8A61F00"><enum>205.</enum><header>Deadline for anti-money laundering rule for investment advisers</header> <subsection id="HA0108701CB9449AFB290EDFE6E66D2DD"><enum>(a)</enum><header>Anti-Money laundering obligations for investment advisers</header><text>Section 5312(a)(2) of title 31, United States Code, is amended—</text>
<paragraph id="H68CDBF41C2474C439DD0F5AA37CA5177"><enum>(1)</enum><text>in subparagraph (Y), by striking <quote>or</quote> at the end;</text></paragraph> <paragraph id="H4B48FB183E8B44B1896912419211C5C4"><enum>(2)</enum><text>by redesignating subparagraph (Z) as subparagraph (BB); and</text></paragraph>
<paragraph id="H1AD6AFF6486D4578A50F4E6A353E24CE"><enum>(3)</enum><text>by inserting after subparagraph (Y) the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="HB1A14E05F1DB46D0A5839D301B2D27BF"> <subparagraph id="H605C1EB06E78495CAE2ABD11E99B9293"><enum>(Z)</enum><text>an investment adviser (as defined in section 202(a) of the Investment Advisers Act of 1940);</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="HD62C6D5EC480450D8AC5206921AB7D1F"><enum>(b)</enum><header>Rules required</header><text>The Secretary of the Treasury shall—</text> <paragraph id="H6D68FFBEA1334434A413E3AA3325FDE8"><enum>(1)</enum><text>in consultation with the Securities and Exchange Commission and the Commodity Futures Trading Commission, not later than 180 days after the date of enactment of this Act, publish a proposed rule in the Federal Register to carry out the amendments made by this section; and</text></paragraph>
<paragraph id="H9EA10E826D28432D9852395D8201C5B9"><enum>(2)</enum><text>not later than 270 days after the date of enactment of this Act, publish a final rule in the Federal Register on the matter described in paragraph (1).</text></paragraph></subsection> <subsection id="HFEAFE89426C940668A317C8E443BBB7C"><enum>(c)</enum><header>Contents</header><text>The final rule published under this section shall require, at a minimum, each investment adviser (as defined in section 202(a)(11) of the Investment Advisers Act of 1940 (<external-xref legal-doc="usc" parsable-cite="usc/15/80b-2">15 U.S.C. 80b–2(a)(11)</external-xref>)) registered with the Securities and Exchange Commission pursuant to section 203 of that Act (<external-xref legal-doc="usc" parsable-cite="usc/15/80b-3">15 U.S.C. 80b–3</external-xref>)—</text>
<paragraph id="H5D52056468CA4EC387450D5D92C82E69"><enum>(1)</enum><text>to submit suspicious activity reports and establish an anti-money laundering program under subsections (g) and (h), respectively, of section 5318 of title 31, United States Code; and</text></paragraph> <paragraph id="H7B63A595CB294113944E16A1BDC1393B"><enum>(2)</enum><text>to comply with—</text>
<subparagraph id="H5E8254510FEF4813B0E10F4551865AAB"><enum>(A)</enum><text>the customer identification program requirements under section 5318(l) of title 31, United States Code; and</text></subparagraph> <subparagraph id="H52A2DE9FFF1143DF8906DE04FC279D58"><enum>(B)</enum><text>the due diligence requirements under section 5318(i) of title 31, United States Code.</text></subparagraph></paragraph></subsection></section>
<section id="H44FF37858C87454DA8ABC2383E3F4926"><enum>206.</enum><header>Anti-money laundering requirements for formation agents</header>
<subsection id="HB771F90229EE45E8979D97226BC173C3"><enum>(a)</enum><header>Anti-Money laundering obligations for formation agents</header><text>Section 5312(a)(2) of title 31, United States Code, as amended by section 205 of this Act, is amended by inserting after subparagraph (Z) the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H06A93EA9E7CE44788C6CC3C70F342321"> <subparagraph id="H614382044D044665BC83E5673329AD12"><enum>(AA)</enum><text>any person engaged in the business of forming new corporations, limited liability companies, partnerships, trusts, or other legal entities; or</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H5AA3E7C900884834987EBE005ECDB907"><enum>(b)</enum><header>Deadline for anti-Money laundering rule for formation agents</header>
<paragraph id="H7C0CB3D0C7814A338BAE377DA84233BB"><enum>(1)</enum><header>Proposed rule</header><text>The Secretary of the Treasury, in consultation with the Attorney General of the United States, the Secretary of Homeland Security, and the Commissioner of Internal Revenue, shall—</text> <subparagraph id="HA8A46310A250458DA26B76AA637FC5DD"><enum>(A)</enum><text>not later than 120 days after the date of enactment of this Act, publish a proposed rule in the Federal Register requiring persons described in section 5312(a)(2)(AA) of title 31, United States Code, as added by this section, to establish anti-money laundering programs under <external-xref legal-doc="usc" parsable-cite="usc/26/5318">section 5318(h)</external-xref> of that title; and</text></subparagraph>
<subparagraph id="HC9282F842497431B8A3196D89D5CAA56"><enum>(B)</enum><text>not later than 270 days after the date of enactment of this Act, publish a final rule in the Federal Register on the matter described in subparagraph (A).</text></subparagraph></paragraph> <paragraph id="HCF98ACDAAE0F4B608DF2C29E003C8934"><enum>(2)</enum><header>Exclusions</header><text>The rule promulgated under this subsection shall exclude from the category of persons engaged in the business of forming new corporations or other entities—</text>
<subparagraph id="HAC8EAE3635704423862C0420C8DE7ECE"><enum>(A)</enum><text>any government agency; and</text></subparagraph> <subparagraph id="HCDE5D22E2FF748AFA6D6A0764770222A"><enum>(B)</enum><text>any attorney or law firm that uses a paid formation agent operating within the United States to form such corporations or other entities.</text></subparagraph></paragraph></subsection></section>
<section id="H43E691C2701C4AB9A9088CF5C99286D7"><enum>207.</enum><header>Strengthening John Doe summons proceedings</header>
<subsection id="HF43F286326484873BB4EEC1ED62EAA41"><enum>(a)</enum><header>In general</header><text>Subsection (f) of <external-xref legal-doc="usc" parsable-cite="usc/26/7609">section 7609</external-xref> is amended to read as follows:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="HE29CCEBCA83B436D820E42ED5589FCB3"> <subsection id="H0A4FD0C3117B4DE3ACD8B157901BB6A7"><enum>(f)</enum><header>Additional requirement in the case of a John Doe summons</header> <paragraph id="H2046BB09EABD4A209C511BEDE2E35E49"><enum>(1)</enum><header>General Rule</header><text>Any summons described in subsection (c)(1) which does not identify the person with respect to whose liability the summons is issued may be served only after a court proceeding in which the Secretary establishes that—</text>
<subparagraph id="H10D7743D047346CCB1CD9C7AAF5E7294"><enum>(A)</enum><text>the summons relates to the investigation of a particular person or ascertainable group or class of persons,</text></subparagraph> <subparagraph id="H1D40F181BFD949EC8262C35DA902D15F"><enum>(B)</enum><text>there is a reasonable basis for believing that such person or group or class of persons may fail or may have failed to comply with any provision of any internal revenue law, and</text></subparagraph>
<subparagraph id="H54798A5BE06E41198A1DC10F18041551"><enum>(C)</enum><text>the information sought to be obtained from the examination of the records or testimony (and the identity of the person or persons with respect to whose liability the summons is issued) is not readily available from other sources.</text></subparagraph></paragraph> <paragraph id="H06F645816EBE44F0A1D7B081D1DC6D47"><enum>(2)</enum><header>Exception</header><text>Paragraph (1) shall not apply to any summons which specifies that it is limited to information regarding a United States correspondent account (as defined in section 5318A(e)(1)(B) of title 31, United States Code) or a United States payable-through account (as defined in <external-xref legal-doc="usc" parsable-cite="usc/26/5318A">section 5318A(e)(1)(C)</external-xref> of such title) of a financial institution that is held at a non-FATCA institution (as defined in section 7701(a)(51)).</text></paragraph>
<paragraph id="HACCF5EFB6A304BA3A111A8D8F06B2C25"><enum>(3)</enum><header>Presumption in cases involving non-fatca institutions</header><text>For purposes of this section, in any case in which the particular person or ascertainable group or class of persons have financial accounts in or transactions related to a non-FATCA institution (as defined in section 7701(a)(51)), there shall be a presumption that there is a reasonable basis for believing that such person or group or class of persons may fail or may have failed to comply with provisions of internal revenue law.</text></paragraph> <paragraph id="H0C21469325894D07996ADBE867BB0412"><enum>(4)</enum><header>Project John Doe summonses</header> <subparagraph id="H842068B4EAD94AAB84C7B1DB2AD666F1"><enum>(A)</enum><header>In general</header><text>Notwithstanding the requirements of paragraph (1), the Secretary may issue a summons described in paragraph (1) if the summons—</text>
<clause id="H6055E8FC9BE34460B4375FD6D7F70898"><enum>(i)</enum><text>relates to a project which is approved under subparagraph (B),</text></clause> <clause id="HEAE6300FD060474F8F64EB8CE6F00142"><enum>(ii)</enum><text>is issued to a person who is a member of the group or class established under subparagraph (B)(i), and</text></clause>
<clause id="H035E90A87EFD47F98A9E8C9462C51922"><enum>(iii)</enum><text>is issued within 3 years of the date on which such project was approved under subparagraph (B).</text></clause></subparagraph> <subparagraph id="H73A51DEF47F942178ACAF99A4DF76C48"><enum>(B)</enum><header>Approval of projects</header><text>A project may only be approved under this subparagraph after a court proceeding in which the Secretary establishes that—</text>
<clause id="H4F19526B09E24D33A6A8E56DF758BDAF"><enum>(i)</enum><text>any summons issued with respect to the project will be issued to a member of an ascertainable group or class of persons, and</text></clause> <clause id="H24B8440269D84A54B5225200DE5CB52F"><enum>(ii)</enum><text>any summons issued with respect to such project will meet the requirements of paragraph (1).</text></clause></subparagraph>
<subparagraph id="HDC31B8EFCF2348CB9EDABB3143C39CD8"><enum>(C)</enum><header>Extension</header><text>Upon application of the Secretary, the court may extend the time for issuing such summonses under subparagraph (A)(i) for additional 3-year periods, but only if the court continues to exercise oversight of such project under subparagraph (D).</text></subparagraph> <subparagraph id="HDFC78CBD97644B4A9206A865F6D09450"><enum>(D)</enum><header>Ongoing court oversight</header><text>During any period in which the Secretary is authorized to issue summonses in relation to a project approved under subparagraph (B) (including during any extension under subparagraph (C)), the Secretary shall report annually to the court on the use of such authority, provide copies of all summonses with such report, and comply with the court's direction with respect to the issuance of any John Doe summons under such project.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HF90A83EBEAD94C499CE762D9AE64230D"><enum>(b)</enum><header>Jurisdiction of court</header>
<paragraph id="H79E632FC12914CC2AA03C1400C31B257"><enum>(1)</enum><header>In general</header><text>Paragraph (1) of <external-xref legal-doc="usc" parsable-cite="usc/26/7609">section 7609(h)</external-xref> is amended by inserting after the first sentence the following new sentence: <quote>Any United States district court in which a member of the group or class to which a summons may be issued resides or is found shall have jurisdiction to hear and determine the approval of a project under subsection (f)(4)(B).</quote>.</text></paragraph> <paragraph id="HDF2ED36E5FC0467C9452445CC2682411"><enum>(2)</enum><header>Conforming amendment</header><text>The first sentence of <external-xref legal-doc="usc" parsable-cite="usc/26/7609">section 7609(h)(1)</external-xref> is amended by striking <quote>(f)</quote> and inserting <quote>(f)(1)</quote>.</text></paragraph></subsection>
<subsection id="HE8E17F385AF34C1F8A8F86778A4D61D7"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to summonses issued after the date of the enactment of this Act.</text></subsection></section> <section id="H5BE8AE9BF19C4EC787E0F0135CD935A5"><enum>208.</enum><header>Improving enforcement of foreign financial account reporting</header> <subsection id="H0784DEF598C5435E9FB7CC93DD1C1E98"><enum>(a)</enum><header>Clarifying the connection of foreign financial account reporting to tax administration</header><text>Paragraph (4) of <external-xref legal-doc="usc" parsable-cite="usc/26/6103">section 6103(b)</external-xref> is amended by adding at the end the following new sentence:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="H97761528F4AC4422A68D49502F995D51">
<quoted-block-continuation-text quoted-block-continuation-text-level="paragraph">For purposes of subparagraph (A)(i), section 5314 of title 31, United States Code, and <external-xref legal-doc="usc" parsable-cite="usc/26/5321">sections 5321</external-xref> and <external-xref legal-doc="usc" parsable-cite="usc/26/5322">5322</external-xref> of such title (as such sections pertain to such section 5314), shall be considered related statutes.</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H2F4F8203762346E5858F7318E96DEDD0"><enum>(b)</enum><header>Simplifying the calculation of foreign financial account reporting penalties</header><text>Section 5321(a)(5)(D)(ii) of title 31, United States Code, is amended by striking <quote>the balance in the account at the time of the violation</quote> and inserting <quote>the highest balance in the account during the reporting period to which the violation relates</quote>.</text></subsection> <subsection commented="no" display-inline="no-display-inline" id="H4C5415FDFDAB425DAC3DF64781DE0FE3"><enum>(c)</enum><header>Clarifying the use of suspicious activity reports under the Bank Secrecy Act for civil tax law enforcement</header><text>Section 5319 of title 31, United States Code, is amended by inserting <quote>the civil and criminal enforcement divisions of the Internal Revenue Service,</quote> after <quote>including</quote>.</text></subsection></section>