[Congressional Record Volume 140, Number 21 (Wednesday, March 2, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: March 2, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                         ADDITIONAL STATEMENTS

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      NONQUALIFIED DEFERRED COMPENSATION CLARIFICATION ACT OF 1994

 Mr. PRYOR. Mr. President, on February 28, 1994, I introduced 
the Nonqualified Deferred Compensation Clarification Act of 1994, S. 
1877, in order to clarify the confusion created over treatment of 
interest under a nonqualified compensation plan in the wake of the 
December 1993 Ninth Circuit Court ruling in Albertson's versus 
Commissioner.
  The bill was referred to the Finance Committee, of which I am a 
member. I am happy to have Senator David Boren as a cosponsor, and I 
look forward to working with the chairman and my colleagues on the 
Finance Committee, and all of my colleagues in the Senate to resolve 
this issue.
  Mr. President, I ask that a copy of S. 1877 be included in the 
Record.
  The text of S. 1877 follows:

                                S. 1877

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

     SECTION 1. DEDUCTION OF INTEREST AND SIMILAR AMOUNTS 
                   ATTRIBUTABLE TO DEFERRED COMPENSATION.

       (a) In General.--Section 404 of the Internal Revenue Code 
     of 1986 (relating to deductions for compensation under a 
     deferred payment plan) is amended by adding at the end the 
     following new subsection:
       ``(m) Deductibility of Interest and Similar Amounts Accrued 
     With Respect To Deferred Compensation.--
       ``(1) In general.--For purposes of this chapter, the 
     determination of the taxable year in which a deduction is 
     allowed for amounts described in paragraph (2) shall be made 
     under this section and in the same manner as if such amounts 
     were compensation.
       ``(2) Applicable amounts.--An amount is described in this 
     paragraph if it is--
       ``(A) interest or a similar amount based on the time value 
     of money, and--
       ``(B) an integral part of the method used to calculate the 
     total amount of deferred compensation to be paid.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to amounts accruing in taxable years beginning 
     before, on, or after the date of the enactment of this 
     Act.

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