Table Of Content

General Explanations of the Administration's Revenue Proposals Department of the Treasury February 1998 %<M LIBRARY N*}- TABLE OF CONTENTS , Ml Make Child Care More Affordable c ^ Expanding theChild andDependentCareTaxCredit 1 Employer Creditfor Expenses of Supporting Employee Child Care 3 Promote Energy Efficiency and Improye the Environment Provide TaxCreditforEnergy-efficientBuilding Equipment 5 ProvideTaxCredit for PurchaseofNew Energy Efficient Homes 7 ProvideTaxCreditforHigh-fuel-economy Vehicles 8 Equalize Treatmentof Parking andTransitBenefits 10 ProvideInvestmentTax CreditFor combinedHeatand Power (CHP) Systems 11 ProvideTaxCreditforReplacementOf certain CircuitBreakerEquipment 13 ProvideTaxCreditfor Certain Perfluorocompound (PFC) and Hydrofluorocarbon (HFC) Recycling Equipment 14 Provide TaxCreditforRooftop Solar Equipment 15 ExtendWindandBiomass TaxCredit 16 Promote Expanded Retirment Savings ExpandedAccesstoPayroll Deduction for Retirement Savings 17 Small BusinessTax Credit for RetirementPlan Start-Up Expenses 18 The SmartPlan -- A SimplifiedPension Plan for Small Business 19 FasterVestingof Employer Matching Contributions 24 Pension Rightto Know Proposals 25 Simplified Method for Improving Benefits ofNonhighly Compensated Employees underthe Safe Harbor for401(k) Plans 28 Simplify Definition of Highly Compensated Employee 30 SimplifyBenefitLimits forMultiemployerPlans under Section 415 31 SimplifyFull FundingLimitation forMultiemployerPlans 32 Eliminate Partial Termination Rules for Multiemployer Plans 33 Education Initiatives Tax Credits forHoldersof Qualified School modernization Bonds andQualifiedZoneAcademy Bonds 34 Exclusionfor Employer-ProvidedEducational Assistance 37 Eliminating Taxon Forgiveness of Direct StudentLoans SubjecttoIncome ContingentRepayment 38 Low Income Housing Credit Increase Low-IncomeHousing Tax Credit per Capita Cap 39 Extend Expiring Provisions Extendthe Work OpportunityTax Credit 40 ExtendtheWelfare-to-Work Tax Credit 41 ExtendtheR&E TaxCredit 42 ExtendtheDeduction Provided For Contributionsof Appreciated StocktoPrivate Foundations 43 MakePermanenttheExpenspng of Brownfields Remediation Costs 44 Miscellaneous Provisions Extend andModify Puerto RicoTax Credit (Section 30A) 45 Specialized Small Business Investment CompanyTaxIncentives 46 Accelerateand ExpandIncentivesAvailableToTwo New EmpowermentZones 48 Make First $2,000 of SeverancePay Exemptfrom IncomeTax 49 Simplify The TaxLaws Optional Self-Employment Contributions Act (SECA)computations 50 Provide StatutoryHedging and Other Rulesto Ensure business Property Is Treated as Ordinary Property 52 ClarifyRules Relating to Certain Disclaimers 54 Simplifythe ForeignTax CreditLimitation forDividends from 10/50 Companies 55 InterestTreatment forDividendsPaid by Certain Regulated investment companies to foreignpersons 57 Enhance Taxpayers' Rights Suspend Collection by Levy DuringRefund Suit 58 Suspend Collection by LevyWhile Offer in Compromise Is Pending 59 Suspend Collectionto Permit Resolution of Disputes astoLiability 60 Require DistrictCounselApproval of Certain Third-Party Collection Activities 61 Require Management Approval of Levies on Certain Assets 62 Require District Counsel Review of Jeopardy and Termination Assessmenrs andJeopardy Levies 63 Require Management Approval of Sales of Perishable Goods 64 Codify Certain FairDebtCollection Procedures 65 ModifyPayment of Taxes 66 Require Disclosures Relating to Extension of Statutes of Limitation by Agreement 67 Publish LivingAllowance Schedules Relatingto Offers in Compromise 68 EnsureAvailabilityof InstallmentAgreements 69 Increase Superpriority DollarLimits 70 Permit PersonalDeliveryof Section 6672(b)Notices 71 Allow TaxpayerstoQuashAll Third-Party Summonses 72 Require Disclosure of Criteria forExamination Selection 73 Prohibit ThreatofAuditto Coerce Tip Reporting Alternative CommitmentAgreements 74 Permit Service of SummonsesbyMail 75 Allow Suits forDamagesIf TheIRS Violates CertainBankruptcyProcedures 76 Increase TaxCourt's"Small Case"Limit 77 Provide Equitable Tolling 78 RequireNoticeof Deficiencyto Specify TaxCourtFiling Deadlines 79 AllowactionsforRefund with Respectto CertainEstates Which HaveElectedtheInstallmentMethodofPayment 80 ExpandAuthoritytoAward Costs and Fees 81 ExpandAuthority toIssueTaxpayerAssistanceOrders 82 ProvideNewRemedyforThird Parties Who Claim That theIRS Has FiledanErroneous Lien 83 AllowDamage SuitsbyPersons OtherthantheTaxpayer 85 Suspend Collection in Certain JointLiability Cases 86 Require Explanation ofJointand Several Liability 87 Relieve Innocent Spouseof Liabilityin Certain Cases 88 Allow "Global" InterestNetting of Under- and Over-Payments 90 FacilitateArchiving of IRS Records 91 Clarify Authorityto Prescribe Mannerof Making Elections 92 Grant IRS Broad AuthoritytoEnterinto Cooperative agreements with statetaxing agencies 93 ProvideClinics forLow-Income Taxpayers 94 Provide Procedures forRelease of Field ServiceAdvice 95 Revenue Measures DeferDeduction for InterestAnd OriginalIssue Discount on Convertible Debt 97 Eliminate Dividends-Received Deduction forCertain Preferred Stock 98 Repeal Percentage Depletion forNon-Fuel Minerals Mined on Federal andFormerly Federal Lands 100 Repeal Tax-Free Conversions of Large C Corporationsto S Corporations 101 . . Replace Sales SourceRules with Activity-BasedRule 103 Modify Rules RelatingtoForeign Oil and Gas Extraction Income 104 Repeal Lowerof CostorMarket Inventory accounting Method 06 1 Increase PenaltiesforFailureto File Correct Information Returns 107 Tightenthe SubstantialUnderstatementPenalty for Large Corporations 108 . Repeal Exemption for Withholding on Gambling Winnings from Bingo and Keno in Excess of $5,000 109 Reinstate Oil SpillExcise Tax 110 ModifyDepositRequirementforFUTA Ill Extend ProRata Disallowance of Tax-ExemptInterestExpense thatAppliesto BankstoAllFinancialIntermediaries 112 Increasethe Proration Percentage for Property Casualty (P&C) Insurance Companies 113 PrecludeCertainTaxpayersfromPrematurelyClaimingLossesfromReceivables orfrom Creating Reserves for Bad Debts 114 Restrict SpecialNetOperating Loss Carryback Rules For Specified Liability Losses 116 Freeze Grandfathered Status of StapledorPaired Share REITS 118 RestrictImpermissibleBusinesses Indirectly Conducted by REITS 119 ModifyTreatmentofClosely Held REITS 120 ModifyDepreciationMethod forTax-ExemptUseProperty 121 Impose Excise TaxonPurchase of Structured Settlements 122 ClarifyandExpandMath ErrorProcedures 123 Clarifythe Meaning of "SubjectTo"Liabilitiesunder Section 357(c) 125 Simplify FosterChildDefinition underEITC 127 Clarify Tie-BreakerRule under EITC 128 EliminateNon-Business Valuation Discounts 129 Eliminate "Crummey"Rule 130 Eliminate GiftTaxExemptionfor PersonalResidence Trusts 131 Include Qualified Terminable InterestProperty (QTIP) trustAssetsin Surviving Spouse'sEstate 132 Apply 7.7 PercentCapitalization Rate to Credit Life Insurance Premiums ..133 Modify Corporate-OwnedLife Insurance (COLI) Rules 134 Modify Reserve Rules forAnnuityContracts 136 Tax Certain Exchanges of Insurance Contracts and Reallocationsof Assets Within Variable Insurance Contracts 138 Reduce "InvestmentintheContract"for Mortality and Expense Charges on Certain Insurance Contracts 140 Amend 80/20 Company Rules 142 Prescribe Regulatory DirectivetoAddressTaxAvoidance involving Foreign Built-pnLosses 143 Prescribe Regulatory DirectivetoAddressTax avoidance Through Useof Hybrids 144 ModifyForeign OfficeMaterial Participation Exception Applicable to Inventory Sales attributable toNonresident'sU.S. Office 147 StopAbuse of CFC Exception to Ownership Requirements Of Section 883 ... 148 OtherMeasures Affecting Receipts Reinstate EnvironmentalTaxImposedon Corporate Taxable Income and Depositedinthe Hazardous Substance Superfund TrustFund ..150 Reinstate Excise Taxes Deposited fnThe hazardous Substance SuperfundTrustFund 151 — Extend Excise Taxeson Gasoline, Diesel Fuel, and Special Motor Fuels 152 Convert Excise Taxes Deposited inthe Airportand Airwaytrust Fund to Cost-Based UserFees Assessed for Federal Aviation Administration (FAA) Services 153