[Congressional Record Volume 144, Number 151 (Wednesday, October 21, 1998)]
[Senate]
[Page S12879]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




    EXEMPTION FROM FEDERAL TAXATION OF REWARD PAID IN UNABOMBER CASE

                                 ______
                                 

                      MOYNIHAN AMENDMENT NO. 3839

  Mr. LOTT (for Mr. Moynihan) proposed an amendment to the bill (H.R. 
2513) to amend the Internal Revenue Code of 1986 to restore and modify 
the provision of the Taxpayer Relief Act of 1997 relating to exempting 
active financing income from foreign personal holding company income 
and to provide for the nonrecognition of gain on the sale of stock in 
agricultural processors to certain farmers' cooperatives; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. EXEMPTION FROM FEDERAL TAXATION OF REWARD PAID IN 
                   UNABOMBER CASE IF USED TO COMPENSATE VICTIMS 
                   AND THEIR FAMILIES OR TO PAY CERTAIN ATTORNEYS' 
                   FEES.

       (a) In General.--For purposes of the Internal Revenue Code 
     of 1986, if the requirements of subsection (b) are met with 
     respect to the amounts received by David R. Kaczynski of 
     Schenectady, New York, and his wife, Linda E. Patrik, from 
     the United States as a reward for information leading to the 
     arrest of Theodore J. Kaczynski in the ``Unabomber'' case, 
     then--
       (1) their gross income shall not include (and no deduction 
     shall be allowed to them with respect to) such amounts; and
       (2) any payment by them to victims and their families in 
     such case shall not be treated as a gift for purposes of 
     subtitle B of such Code and shall not be included in gross 
     income of the recipients.
       (b) Requirements.--For purposes of subsection (a), the 
     requirements of this subsection are met if all of the amounts 
     described in subsection (a) are used only for the following 
     purposes:
       (1) Payment by Mr. David R. Kaczynski and Ms. Linda E. 
     Patrik before September 15, 1998, to their attorneys for 
     attorneys' fees incurred by them in connection with the 
     ``Unabomber'' case.
       (2) Payment by Mr. David R. Kaczynski and Ms. Linda E. 
     Patrik of State and local taxes on such amounts.
       (3) Payment of all remaining amounts by Mr. David R. 
     Kaczynski and Ms. Linda E. Patrik no later than 1 year after 
     the date of the enactment of this Act to the victims and 
     their families in the ``Unabomber'' case or to an irrevocable 
     trust established exclusively for the benefit of such victims 
     and their families.
       (c) Victims and Their Families.--For purposes of this 
     section, the Attorney General of the United States or her 
     delegate shall identify the individuals who are to be treated 
     as victims and their families in the ``Unabomber'' case.
       ``A bill to provide tax-free treatment of reward monies 
     donated to the victims of ``Unabomber'' Theodore Kaczynski.''

                          ____________________