< Back to H.R. 4256 (104th Congress, 1995–1996)

Text of To amend the Internal Revenue Code of 1986 to provide for the abatement of interest on deficiencies attributable to certain ...

...attributable to certain partnership items.

This bill was introduced on September 27, 1996, in a previous session of Congress, but was not enacted. The text of the bill below is as of Sep 27, 1996 (Introduced).

Source: GPO

HR 4256 IH

104th CONGRESS

2d Session

H. R. 4256

To amend the Internal Revenue Code of 1986 to provide for the abatement of interest on deficiencies attributable to certain partnership items.

IN THE HOUSE OF REPRESENTATIVES

September 27, 1996

Mr. LAUGHLIN introduced the following bill; which was referred to the Committee on Ways and Means


A BILL

To amend the Internal Revenue Code of 1986 to provide for the abatement of interest on deficiencies attributable to certain partnership items.

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

SECTION 1. ABATEMENT OF INTEREST ON DEFICIENCIES ATTRIBUTABLE TO CERTAIN PARTNERSHIP ITEMS.

    (a) IN GENERAL- Section 6404 of the Internal Revenue Code of 1986 is amended by redesignating subsections (f) and (g) as subsections (g) and (h), respectively, and by inserting after subsection (e) the following new subsection:

    ‘(f) ABATEMENT OF INTEREST ATTRIBUTABLE TO CERTAIN PARTNERSHIP ITEMS-

      ‘(1) IN GENERAL- In the case of any assessment of interest on any deficiency in income tax attributable to a partnership item, the Secretary shall abate such portion, if any, of such interest which constitutes suspended partnership item interest.

      ‘(2) SUSPENDED PARTNERSHIP ITEM INTEREST- For purposes of this subsection, the term ‘suspended partnership item interest’ means interest accruing for the period during which a judicial proceeding is pending pursuant to section 6226 with respect to the deficiency referred to in paragraph (1), but only to the extent that, during the pendency of such proceeding, a non-indictable criminal investigation is also pending.

      ‘(3) NON-INDICTABLE CRIMINAL INVESTIGATION- For purposes of this subsection, the term ‘non-indictable criminal investigation’ means an investigation by the Internal Revenue Service, the Department of Justice, or a grand jury, of any potential criminal violation of United States tax laws involving matters related to the partnership which is the subject of the judicial proceeding referred to in paragraph (2), if such investigation does not result in the indictment of any partner in such partnership.

      ‘(4) PENDENCY OF NON-INDICTABLE CRIMINAL INVESTIGATION- For purposes of this subsection, a non-indictable criminal investigation shall be deemed pending--

        ‘(A) from the date of the Internal Revenue Service or the Department of Justice authorizes such investigation,

        ‘(B) to the last date on which each person under investigation either has been indicted or has been notified in writing that such investigation of him or her has terminated.

      ‘(5) CONVERTED PARTNERSHIP ITEMS- A partnership item subsequently converted to or otherwise treated as a nonpartnership item shall nonetheless be deemed a partnership item for purposes of paragraph (1).’.

    (b) EFFECTIVE DATE- The amendment made by subsection (a) shall apply to interest on deficiencies in income tax attributable to--

      (1) partnership items, and

      (2) partnership items subsequently converted to or otherwise treated as nonpartnership items,

    with respect to a partnership which is the subject of a judicial proceeding under section 6226 of the Internal Revenue Code of 1986 pending on or commencing after the date of the enactment of this Act.