[Senate Report 113-155]
[From the U.S. Government Publishing Office]


                                                       Calendar No. 367
113th Congress  }                                            {   Report
  2d Session    }            SENATE                          {  113-155
_______________________________________________________________________
 
                 TAX TECHNICAL CORRECTIONS ACT OF 2014 

                               __________

                              R E P O R T

                                 of the

                          COMMITTEE ON FINANCE

                          UNITED STATES SENATE


                 [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


                 April 28, 2014.--Ordered to be printed


                                    ----

                        U.S. GOVERNMENT PRINTING OFFICE 

                             WASHINGTON : 2014 



                               CONTENTS


                                                                   Page
I. LEGISLATIVE BACKGROUND........................................     1
    A. Description of Tax Technical Corrections (secs. 1-19 of 
      the bill)..................................................     1
    B. Deadwood Provisions (sec. 20 of the bill).................     8
II. BUDGET EFFECTS OF THE BILL...................................     9
    A. Committee Estimates.......................................     9
    B. Budget Authority and Tax Expenditures.....................     9
    C. Consultation with Congressional Budget Office.............     9
III. VOTES OF THE COMMITTEE......................................     9
IV. REGULATORY IMPACT AND OTHER MATTERS..........................     9
    A. Regulatory Impact.........................................     9
    B. Unfunded Mandates Statement...............................    10
    C. Tax Complexity Analysis...................................    10
V. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED.........    10



                                                       Calendar No. 367
113th Congress  }                                           {    Report
  2d Session    }              SENATE                       {   113-155
=======================================================================

                 TAX TECHNICAL CORRECTIONS ACT OF 2014

                                _______
                                

                 April 28, 2014.--Ordered to be printed

                                _______
                                

               Mr. Wyden, from the Committee on Finance, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 2261]

    The Committee on Finance, having considered an original 
bill, S. 2261, to amend the Internal Revenue Code of 1986 to 
make technical corrections, to remove provisions that are no 
longer applicable, and for other purposes, having considered 
the same, reports favorably thereon and recommends that the 
bill do pass.

                       I. LEGISLATIVE BACKGROUND

    The Senate Committee on Finance marked up original 
legislation (the ``Tax Technical Correction Act'') on April 3, 
2014, and, with a majority and quorum present, ordered the bill 
favorably reported, with amendments on that date. This report 
describes the provisions of the bill.

              A. DESCRIPTION OF TAX TECHNICAL CORRECTIONS

                        (SECS. 1-19 OF THE BILL)

    The bill includes technical corrections to recently enacted 
tax legislation. Except as otherwise provided, the amendments 
made by the technical corrections contained in the bill take 
effect as if included in the original legislation to which each 
amendment relates.

Amendments to the Middle Class Tax Relief and Job Creation Act of 2012 
        (Pub. L. No. 112-96)

    Repeal of certain shifts in the timing of corporate 
estimated tax payments (Act sec. 7001).--The provision corrects 
a reference to the repeal of certain shifts in the timing of 
estimated corporate taxes with respect to the Corporate 
Estimated Tax Shift Act of 2009 (Pub. L. No. 111-42).

Amendments to the American Taxpayer Relief Act of 2012 (Pub. L. No. 
        112-240)

    Capital gain rate for certain high-income individuals (Act 
sec. 102).--The provision contains a conforming amendment to 
the computation of the foreign earned income exclusion.
    Permanent alternative minimum tax relief for individuals 
(Act sec. 104).--The provision clarifies that the exemption 
amount for married individuals filing a separate return is one-
half the exemption amount for married individuals filing a 
joint return, as adjusted for inflation. The provision also 
clarifies that the exemption amount for individuals filing a 
joint return, as adjusted for inflation, is rounded to the 
nearest $100.

Amendments to the Regulated Investment Company Modernization Act of 
        2010 (Pub. L. 111-325)

    Capital loss carryovers (Act sec. 101).--The Act provided 
capital loss carryover treatment for a regulated investment 
company (``RIC'') similar to the net capital loss carryovers 
applicable to individuals. The provision is effective for 
taxable years beginning after December 22, 2010. The Internal 
Revenue Service ruled that this provision is effective for 
purposes of the excise tax under section 4982 for calendar 
years after 2010.\1\ Thus, the provision applies to 1-year 
periods beginning after October 31, 2010, which are taken into 
account in computing the excise tax for calendar years 
beginning after 2010.
---------------------------------------------------------------------------
    \1\Rev. Rul. 2012-29, 2012-42 I. R. B. 475.
---------------------------------------------------------------------------
    Capital losses carryovers under the Act are used prior to 
capital losses carryovers under the provisions of prior law. As 
a result of the interaction of these rules, there are 
situations where capital loss carryovers may expire for 
purposes of the excise tax but not for purposes of determining 
investment company taxable income.
    The provision allows a RIC to elect to delay the new 
capital loss carryover provisions for purposes of section 4982 
for one calendar year so that the provision will apply to 1-
year periods beginning after October 31, 2011, which are taken 
into account in computing the excise tax for calendar years 
beginning after 2011. The provision also provides that the 
capital loss carryovers of a RIC will not prevent the RIC from 
having sufficient earnings and profits to make the required 
distribution of its capital gain net income under section 4982 
(as provided in section 852(c)(2)).
    Spillover dividends (Act sec. 304).--The Act provides that 
a spillover dividend must be declared before the later of the 
15th day of the 9th month following the close of the taxable 
year or the extended due date for filing the return for the 
taxable year. The provision provides the declaration may be 
made on or before the relevant date.
    Certain late year losses (Act sec. 308).--Under prior law, 
for purposes of determining the amount of a net capital gain 
dividend, the amount of net capital gain for a taxable year was 
determined without regard to any net capital loss or net long-
term capital loss attributable to transactions after October 31 
of the taxable year, and the post-October net capital loss or 
net long-term capital loss was treated as arising on the first 
day of the RIC's next taxable year.\2\ The Act provided a 
similar rule with respect to the post-October net short-term 
capital loss.
---------------------------------------------------------------------------
    \2\Treas. Reg. 1.852-11 provides rules relating to the treatment of 
losses attributable to periods after October 31 of a taxable year. 
Also, Notice 97-64, 1997-2 C.B. 323, provides guidance on the 
application of the multiple tax rates under section 1(h) to capital 
gain dividends of RICs.
---------------------------------------------------------------------------
    The provision provides that the post-October capital loss 
means the net capital loss for the portion of the taxable year 
after October 31, or if there is no such loss, the net post-
October net long-term capital loss or the net post-October 
short-term net capital loss.
    Under prior law, to the extent provided in regulations, a 
RIC could elect to push the post-October net foreign currency 
losses and the net reduction in the value of stock in a PFIC 
(passive foreign investment company) with respect to which an 
election is in effect under section 1296(k) forward to the next 
taxable year. Regulations had been issued allowing RICs to 
elect to defer all or part of any post-October net foreign 
currency losses for the portion of the taxable year after 
October 31 to the first day of the succeeding taxable year. The 
Act expanded this rule to provide that any late-year ordinary 
loss may be deferred.
    The provision corrects the definition of late-year ordinary 
loss by defining the loss to be the sum of the post-October 
specified loss (if any) and the post-December ordinary loss (if 
any).
    The provision does not apply to an election made before the 
date of enactment of this Act for a taxable year ending before 
that date where the election to defer losses was made in 
accordance with the provisions of present law as now in effect.
    Deferral of certain gains and losses for excise tax 
purposes (Act sec. 402).--For purposes of the section 4982 
excise tax, the Act applies the mark to market provisions of 
the Code and regulations thereunder as if the taxable year 
ended on October 31. Also the Act allows a taxable year RIC, 
except as provided in regulations, to elect to ``push'' any net 
ordinary loss (determined without regard to ordinary gains and 
losses which are automatically ``pushed'' to the next calendar 
year) attributable to the portion of the calendar year after 
the beginning of the taxable year which begins in the calendar 
year to the first day of the next calendar year.
    The provision provides that any rule which determines 
income by reference to the value of an item on the last day of 
the taxable year is treated as a mark to market provision for 
which value will be determined on October 31 for purposes of 
the excise tax.
    The provision allows a RIC to elect to push any portion of 
a net ordinary loss to the next calendar year in determining 
its ordinary income or net ordinary loss for a calendar year.

Amendments to the Tax Relief, Unemployment Insurance Reauthorization, 
        and Job Creation Act of 2010 (Pub. L. No. 111-312)

    Indexing of amount of reduction of marriage penalty for 
earned income credit (Act sec. 103.--The earned income tax 
credit in section 32 of the Code is clarified to provide that 
the $5,000 amount by which the phase-out thresholds for married 
couples filing jointly are increased are indexed for inflation 
for all taxable years after 2009, not just taxable years 
beginning in 2010.

Amendments to the Creating Small Business Jobs Act of 2010 (Pub. L. No. 
        111-240)

    Failure to furnish correct payee statements (Act sec. 
2102).--The provision clarifies that the effective date for the 
amendments to both section 6721 and section 6722 apply with 
respect to both information returns required to be filed and 
payee statements required to be furnished on or after January 
1, 2011.

Amendments to the American Recovery and Reinvestment Act of 2009, 
        Division B (Pub. L. No. 111-5)

    Refundable portion of child credit for certain taxable 
years (Act sec. 1003).--The child tax credit in section 24 of 
the Code is clarified regarding the determination of the 
refundable credit in any taxable years beginning after 2008 and 
before 2018. The provision provides that, to the extent that 
the child credit exceeds the taxpayer's tax liability, the 
taxpayer is eligible for a refundable credit equal to 15 
percent of earned income in excess of $3,000 not indexed for 
inflation (in lieu of $10,000 indexed for inflation). The 
present-law alternative formula for families with three or more 
children is unchanged.
    American Opportunity Tax Credit (Act sec. 1004).--The Act 
includes a reference to ``tuition, fees, and course 
materials.'' The reference to course materials was intended to 
apply to the Hope credit, but not to the Lifetime learning 
credit. The provision corrects this reference to the inclusion 
of course materials so that it applies only to the Hope credit 
and not to the Lifetime learning credit.
    Deduction for State sales tax and excise tax on the 
purchase of certain motor vehicles (Act sec. 1008).--The Act 
provides an itemized deduction and increased standard deduction 
for qualified motor vehicle taxes. The provision strikes Code 
section 164(b)(6)(E) (which refers to the last sentence of 
section 164(a)) as inoperative, because the taxes referred to 
in that last sentence do not include qualified motor vehicle 
taxes.
    Coordination with renewable energy grants (Act sec. 
1104).--The provision provides that grants in lieu of energy 
credits under section 1603 of the Act are not includible in 
alternative minimum taxable income (including adjusted current 
earnings of a corporation). This treatment is consistent with 
the treatment of energy credits.
    Credits for certain vehicles and refueling property (Act 
secs. 1141 and 1142, and secs. 1341 and 1342 of the Energy Tax 
Incentives Act of 2005 (Pub. L. No. 109-58)).--The provisions 
conform the rules relating to the amount of basis reduction, as 
well as the reduction of other credits and deductions, on 
account of the credits for certain vehicles and refueling 
property under sections 30, 30B, 30C, and 30D of the Code.
    Qualifying advanced energy project credit (Act sec. 
1302).--The provision restores missing words, clarifying that 
the amount subject to the limitation in Code section 48C(b)(3) 
is the amount which is treated as the qualified investment.
    Regulated investment companies allowed to pass through tax 
credit bond credits (Act sec. 1541).--The provision clarifies 
that a regulated investment company electing to pass through 
credits on tax credit bonds, and its shareholders, are treated 
in a manner similar to that which would occur if the company 
distributed to its shareholders an amount of money equal to the 
amount of the credits passed through.
    Special credit for certain government retirees (Act sec. 
2202).--The provision clarifies the credit with respect to 
treatment of the U.S. possessions. The provision is intended to 
operate in a manner similar to the operation of the Making Work 
Pay Credit with respect to the U.S. possessions (see H.R. Rep. 
111-16, February 12, 2009, at 516-517).

Amendments to the Emergency Economic Stabilization Act of 2008 (Pub. L. 
        No 110-343)

            Division B, the Energy Improvement and Extension Act of 
                    2008
    Credit for steel industry fuel (Act Div. B sec. 108).--The 
provision clarifies that coke and coke gas produced using fuel 
qualifying for a steel industry fuel credit is not eligible for 
the credit under present-law section 45K(g).
    Temporary increase in coal excise tax; funding of Black 
Lung Disability Trust Fund (Act Div. B sec. 113).--The 
provision clarifies that the term ``trust fund'' means the 
Black Lung Disability Trust Fund.
    Accelerated recovery period for depreciation of smart 
meters and smart grid systems (Act Div. B. sec. 306).--The 
provision clarifies that the accelerated recovery period for 
smart meters and smart grid systems does not apply to property 
with a class life less than 16 years.
    Special depreciation allowance for certain reuse and 
recycling property (Act Div. B sec. 308).--Consistent with the 
intent of the Act, the provision clarifies that a taxpayer does 
not qualify for the special depreciation allowance under this 
provision if it elects out of bonus depreciation under Code 
section 168(k)(4), which permits a taxpayer to accelerate the 
recognition of AMT and research credits in lieu of claiming 
bonus depreciation. This conforms to the parallel rule in 
section 168(n)(2)(B)(i)(1) (excluding such property from the 
definition of qualified disaster assistance property) under the 
national disaster provisions.
    Special rules in case of foreign oil and gas income (Act 
Div. B sec. 402).--The Act expands the FOGEI rules to apply to 
all foreign income from production and other activity related 
to the sale of oil and gas product (the sum of prior-law FORI 
and FOGEI). A transition rule in the Act unintentionally fails 
to properly apply pre-effective date law to pre-2009 credit 
carryforwards. The provision clarifies that pre-2009 credits 
carried forward to post-2008 years continue to be governed by 
prior law for purposes of determining the amount of 
carryforward credits eligible to be claimed in a post-2008 
year.
    Broker reporting of customer's basis in securities 
transactions (Act Div. B sec. 403).--The provision makes 
conforming changes necessitated by the deletion of the defined 
term ``open-end fund,'' so that the provision refers to 
regulated investment companies rather than open-end funds.
    The Act provides a definition of a dividend reinvestment 
plan (``DRP''), and also permits use of average cost basis for 
stock acquired after December 31, 2010 in connection with a 
DRP. The Act further provides that stock acquired before 2012 
for which an average basis method is permissible is treated as 
a separate account from any such stock acquired after 2011, and 
provides an election for a regulated investment company to 
treat as a single account all stock held by a customer without 
regard to the date of acquisition of the stock. For stock for 
which an average basis method is permissible, the Act's basis 
reporting requirements apply to stock acquired after December 
31, 2011. The provision conforms the effective date for the 
availability of an average basis method for DRP stock to the 
effective date for the basis reporting requirement for stock 
for which an average basis method is permissible by making the 
former rule applicable to DRP stock acquired after December 31, 
2011 (rather than December 31, 2010). The provision makes a 
conforming change to the effective date provision applicable to 
required basis reporting related to DRP stock. Under this 
change, unless a broker elects otherwise, basis reporting for 
DRP stock remains mandatory, as under the Act, only for stock 
acquired on or after January 1, 2012.
    The provision also clarifies that if an election is made to 
treat as a single account all stock acquired in connection with 
a DRP, the average basis method is permissible with respect to 
all such stock without regard to the date of acquisition of the 
stock.
            Division C, Tax Extenders and Alternative Minimum Tax 
                    Relief Act of 2008
    Qualified investment entities (Act Div. C sec. 208).--The 
Act generally extends the inclusion of a RIC within the 
definition of a ``qualified investment entity'' under the 
FIRPTA rules of section 897 through December 31, 2009. The Act 
imposes withholding tax on certain RIC distributions to foreign 
shareholders; however, distributions may have been made after 
the provision had expired on December 31, 2007, but before the 
extension was enacted. The provision clarifies that no 
withholding is required for distributions that were made on or 
before the date of enactment (October 4, 2008). The provision 
also clarifies that a RIC is not liable to a foreign 
shareholder to whom a distribution was made before October 4, 
2008, for amounts that were withheld from such a distribution 
and paid over to the Secretary.
    Extension of 15-year straight-line cost recovery for 
qualified leasehold improvements and qualified restaurant 
improvements; 15-year straight-line cost recovery for certain 
improvements to retail space (Act Div. C sec. 305).--The Act 
expands the application of the 15-year MACRS recovery period to 
restaurant property, for property placed in service after 
December 31, 2008, and to a new category of retail improvement 
property, also for property placed in service after December 
31, 2008. Both of these rules provide that bonus depreciation 
generally is not available for such property. The provision 
clarifies, however, that assets that qualify as both qualified 
leasehold improvement property and either qualified restaurant 
property or qualified retail improvement property qualify for 
bonus depreciation, consistent with the legislative intent with 
respect to assets that overlap in this manner.

Amendments to the Heroes Earnings Assistance and Relief Tax Act of 2008 
        (Pub. L. No. 110-245)

    Special period of limitation when uniformed services 
retired pay is reduced as result of award of disability 
compensation (Act sec. 106).--The provision clarifies that the 
date June 17, 2008 (date of enactment), applies for purposes of 
the portion of the transition rule specifying what date should 
be substituted for the date of the determination.
    Disposition of unused health benefits in flexible spending 
accounts (Act sec. 114).--The Act provides that a plan does not 
fail to be treated as a cafeteria plan or health FSA merely 
because the plan provides for qualified reservist 
distributions. The provision clarifies that a plan does not 
fail to be treated as an accident or health plan under Code 
section 105 merely because it provides for qualified reservist 
distributions.

Amendments to the Economic Stimulus Act of 2008 (Pub. L. No. 110-185)

    2008 recovery rebates for individuals (Act sec. 101).--The 
provision clarifies that summary assessment procedures can 
apply with respect to any taxpayer identification number under 
the provision (not just in the case of limited age errors).

Amendments to the Tax Technical Corrections Act of 2007 (Pub. L. No. 
        110-172)

    Act section 4(c).--The provision reinstates a part of Code 
section 911, relating to the netting of disallowed deductions 
against excluded income, that was inadvertently deleted by the 
Act.

Amendments to the Tax Relief and Health Care Act of 2006 (Pub. L. No. 
        109-432)

    WOTC and Indian employment credit (Act sec. 105).--Code 
section 45A(b)(1)(B) coordinates the Indian employment credit 
with WOTC. It provides that wages are not taken into account 
during the one-year period beginning on the date the individual 
begins work for the employer if wages are taken into account 
under WOTC. In 2006, a second year was added to WOTC for long-
term family assistance recipients (section 51(e)). The 
provision clarifies that the two-year period is taken into 
account for purposes of section 45A(b)(1)(B) if any portion of 
wages are taken into account under subsection (e)(1)(A) of 
section 51.

Amendments to the Safe, Accountable, Flexible, Efficient Transportation 
        Equity Act of 2005: A Legacy for Users (SAFETY-LU) (Pub. L. No. 
        109-59)

    Transfer to Highway Trust Fund of amounts equivalent to 
certain taxes and penalties (Act sec. 11161).--The taxes on 
aviation fuel and aviation gasoline, imposed on removal from a 
terminal directly into the fuel tank of an aircraft, are 
credited to the Airport and Airways Trust Fund (sec. 
9502(b)(1)(D)). The provision makes a technical amendment to 
section 9503(b)(1)(D) to clarify that the Highway Trust Fund is 
not credited with these same amounts.

Amendments to the American Jobs Creation Act of 2004 (Pub. L. No. 108-
        357)

    ETI and 199 circularity (Act sec. 101).--The provision 
incorporates an ordering rule for purposes of section 114 of 
the Code that requires the computation of the section 114 
extraterritorial income (``ETI'') exclusion without regard to 
the section 199 deduction. Under this ordering rule, a taxpayer 
must first compute the amount of the section 114 exclusion, 
determined without regard to the section 199 deduction, before 
the taxpayer computes its section 199 deduction. As under 
present law, any amount excluded from gross income pursuant to 
section 114 continues to be taken into account in determining 
qualified production activities income (``QPAI''). The 
provision is consistent with technical corrections previously 
made to provide ordering rules to avoid circular calculations 
resulting from the interaction between the computations under 
section 199 and sections 163(j), 170, and 613A.
    Section 199 W-2 wages (Act sec. 102).--Section 199(b)(2)(A) 
provides that the amounts included as W-2 wages are only those 
amounts paid during the calendar year ending during the taxable 
year of a taxpayer. In some instances, this results in taxable 
years in which no W-2 wages are included (e.g., short years 
that do not include December 31). Consequently, in such 
instances, the taxpayer may be precluded from claiming a 
section 199 deduction due to the W-2 wage limitation. Although 
section 199(b)(3) provides the Secretary with authority to 
address cases in which there may be a short taxable year as a 
result of a taxpayer's acquisition or disposition of a trade or 
business (or a major portion of a separate unit of a trade or 
business), it does not provide explicit authority to address 
other circumstances that result in a short taxable year (e.g., 
change in accounting period).
    The provision provides the Secretary the authority to issue 
guidance for short taxable years (outside of the context of an 
acquisition or disposition) permitting the allocation of W-2 
wages to a short taxable year that does not include the end of 
a calendar year. For example, the Secretary may issue guidance 
that permits a taxpayer to allocate a portion of the annual W-2 
wages to a short taxable year that does not include the end of 
the calendar year and the full amount of such W-2 wages to the 
subsequent 12-month taxable year that includes such calendar 
year end.

Clerical corrections

    The bill makes clerical and typographical corrections.

                         B. DEADWOOD PROVISIONS

                         (SEC. 20 OF THE BILL)

    A number of provisions in the Internal Revenue Code are not 
used in computing current taxes and are thus obsolete. These 
provisions are referred to as ``deadwood''. The bill repeals 16 
sections of the Code and repeals or amends portions of more 
than 100 other sections of the Code to remove deadwood. The 
bill does not change substantive law.
    The amendments relating to deadwood made by the bill are 
effective on the date of enactment. The bill includes savings 
provisions to mitigate the effects of repealing the deadwood 
items in the event those items have any remaining applicability 
to past transactions. For example, if a transfer of property 
took place before the date of enactment, the basis of the 
property is not changed by reason of any provision of the bill 
which amends a Code section relating to the determination of 
basis.

                     II. BUDGET EFFECTS OF THE BILL


                         A. COMMITTEE ESTIMATES

    In compliance with paragraph 11(a) of rule XXVI of the 
Standing Rules of the Senate, the following statement is made 
concerning the estimated budget effects of the revenue 
provisions of the ``Tax Technical Corrections Act of 2014'' as 
reported. The bill has no revenue effect.

                B. BUDGET AUTHORITY AND TAX EXPENDITURES

Budget authority

    In compliance with section 308(a)(1) of the Budget Act, the 
Committee states that no provisions of the bill as reported 
involve new or increased budget authority.

Tax expenditures

    In compliance with section 308(a)(2) of the Budget Act, the 
Committee states that no provisions of the bill contain tax 
expenditures.

            C. CONSULTATION WITH CONGRESSIONAL BUDGET OFFICE

    In accordance with section 403 of the Budget Act, the 
Committee advises that the Congressional Budget Office has not 
submitted a statement on the bill. The letter from the 
Congressional Budget Office will be provided separately.

                      III. VOTES OF THE COMMITTEE

    Final Passage of the Tax Technical Corrections Act of 
2014--agreed to by voice vote.

                IV. REGULATORY IMPACT AND OTHER MATTERS


                          A. REGULATORY IMPACT

    Pursuant to paragraph 11(b) of rule XXVI of the Standing 
Rules of the Senate, the Committee makes the following 
statement concerning the regulatory impact that might be 
incurred in carrying out the provisions of the bill as amended.

Impact on individuals and businesses, personal privacy and paperwork

    The bill provides for technical corrections to the Internal 
Revenue Code of 1986, as amended. The bill should not result in 
any additional regulation with respect to individuals and 
businesses, and should not result in additional recordkeeping 
responsibilities for individuals and businesses beyond that 
required for present law.

                     B. UNFUNDED MANDATES STATEMENT

    This information is provided in accordance with section 423 
of the Unfunded Mandates Reform Act of 1995 (Pub. L. No. 104-
4).
    The Committee has determined that the tax provisions of the 
reported bill do not contain Federal private sector mandates or 
Federal intergovernmental mandates on State, local, or tribal 
governments within the meaning of Public Law 104-4, the 
Unfunded Mandates Reform Act of 1995. The costs required to 
comply with each Federal private sector mandate generally are 
no greater than the aggregate estimated budget effects of the 
provision.

                       C. TAX COMPLEXITY ANALYSIS

    Section 4022(b) of the Internal Revenue Service Reform and 
Restructuring Act of 1998 (the ``IRS Reform Act'') requires the 
staff of the Joint Committee on Taxation (in consultation with 
the Internal Revenue Service and the Treasury Department) to 
provide a tax complexity analysis. The complexity analysis is 
required for all legislation reported by the Senate Committee 
on Finance, the House Committee on Ways and Means, or any 
committee of conference if the legislation includes a provision 
that directly or indirectly amends the Internal Revenue Code 
and has widespread applicability to individuals or small 
businesses.
    The staff of the Joint Committee on Taxation has determined 
that no provision of the bill has widespread applicability to 
individuals or small businesses.

        V. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

    In the opinion of the Committee, it is necessary in order 
to expedite the business of the Senate, to dispense with the 
requirements of paragraph 12 of rule XXVI of the Standing Rules 
of the Senate (relating to the showing of changes in existing 
law made by the bill as reported by the Committee).

                                  
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