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H.R. 5713 (107th): Tax Technical Corrections Act of 2002


The text of the bill below is as of Nov 13, 2002 (Introduced).


HR 5713 IH

107th CONGRESS

2d Session

H. R. 5713

To amend the Internal Revenue Code of 1986 to make technical corrections, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

NOVEMBER 13, 2002

Mr. THOMAS (for himself and Mr. RANGEL) 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 make technical corrections, and for other purposes.

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

SECTION 1. SHORT TITLE; ETC.

    (a) SHORT TITLE- This Act may be cited as the ‘Tax Technical Corrections Act of 2002’.

    (b) AMENDMENT OF 1986 CODE- Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986.

    (c) TABLE OF CONTENTS- The table of contents for this Act is as follows:

      Sec. 1. Short title; etc.

      Sec. 2. Amendments related to Job Creation and Worker Assistance Act of 2002.

      Sec. 3. Amendments related to Economic Growth and Tax Relief Reconciliation Act of 2001.

      Sec. 4. Amendment related to Victims of Terrorism Tax Relief Act of 2001.

      Sec. 5. Amendments related to Community Renewal Tax Relief Act of 2000.

      Sec. 6. Amendments related to Taxpayer Relief Act of 1997.

      Sec. 7. Other technical corrections.

      Sec. 8. Clerical amendments.

SEC. 2. AMENDMENTS RELATED TO JOB CREATION AND WORKER ASSISTANCE ACT OF 2002.

    (a) AMENDMENTS RELATED TO SECTION 101 OF THE ACT-

      (1) Subparagraph (A) of section 168(k)(2) is amended--

        (A) by striking ‘but only if no written binding contract for the acquisition was in effect before September 11, 2001,’ in clause (iii)(I), and

        (B) by adding at the end the following new sentence:

        ‘Such term shall not include any property with respect to which a written binding contract is in effect before September 11, 2001, for the acquisition of such property or, in the case of property manufactured, constructed, or produced for the taxpayer’s own use, for the manufacture, construction, or production of such property.’.

      (2) Clause (ii) of section 168(k)(2)(D) is amended--

        (A) by inserting ‘clause (iii) and’ before ‘subparagraph (A)(ii)’,

        (B) by inserting ‘is’ after ‘if property’, and

        (C) by striking ‘is’ in subclause (I).

      (3) Subparagraph (D) of section 168(k)(2) is amended by adding at the end the following new clause:

          ‘(iii) SYNDICATION- For purposes of subparagraph (A)(ii), if--

            ‘(I) property is originally placed in service after September 10, 2001, by the lessor of such property,

            ‘(II) such property is sold by such lessor or any subsequent purchaser within 3 months after the date so placed in service, and

            ‘(III) the user of such property after the last sale during such 3-month period remains the same as when such property was originally placed in service,

          such property shall be treated as originally placed in service not earlier than the date of such last sale.’.

    (b) AMENDMENTS RELATED TO SECTION 102 OF THE ACT-

      (1) Subparagraph (H) of section 172(b)(1) is amended by striking ‘a taxpayer which has’.

      (2) In the case of a net operating loss for a taxable year ending during 2001--

        (A) an application under section 6411(a) of the Internal Revenue Code of 1986 with respect to such loss shall not fail to be treated as timely filed if filed before November 1, 2002, and

        (B) any election made under subsection (b)(3) or (j) of section 172 of such Code may (notwithstanding such subsections) be revoked before November 1, 2002.

      (3) Section 102(c)(2) of the Job Creation and Worker Assistance Act of 2002 (Public Law 107-147) is amended by striking ‘before January 1, 2003’ and inserting ‘after December 31, 1995’.

      (4)(A) Subclause (I) of section 56(d)(1)(A)(i) is amended by striking ‘attributable to carryovers’.

      (B) Subclause (I) of section 56(d)(1)(A)(ii) is amended--

        (i) by striking ‘for taxable years’ and inserting ‘from taxable years’, and

        (ii) by striking ‘carryforwards’ and inserting ‘carryovers’.

    (c) AMENDMENTS RELATED TO SECTION 301 OF THE ACT-

      (1) Subparagraph (D) of section 1400L(a)(2) is amended--

        (A) by striking ‘subchapter B’ and inserting ‘subchapter A’, and

        (B) in clause (ii), by striking ‘subparagraph (B)’ and inserting ‘this paragraph’.

      (2) Subparagraph (A) of section 1400L(b)(2) is amended--

        (A) by striking ‘but only if no written binding contract for the acquisition was in effect before September 11, 2001,’ in clause (iv), and

        (B) by adding at the end the following new sentence: ‘The term ‘qualified New York Liberty Zone property’ shall not include any property with respect to which a written binding contract is in effect before September 11, 2001, for the acquisition of such property or, in the case of property manufactured, constructed, or produced for the taxpayer’s own use, for the manufacture, construction, or production of such property.’.

      (3) Paragraph (2) of section 1400L(f) is amended by inserting before the period ‘, determined without regard to subparagraph (C)(i) thereof’.

    (d) AMENDMENT RELATED TO SECTION 405 OF THE ACT- The last sentence of section 4006(a)(3)(E)(iii)(IV) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1306(a)(3)(E)(iii)(IV)) is amended--

      (1) by inserting ‘or this subparagraph’ after ‘this clause’ both places it appears, and

      (2) by inserting ‘(other than sections 4005, 4010, 4011, and 4043)’ after ‘subsections’.

    (e) AMENDMENT RELATED TO SECTION 411 OF THE ACT- Section 411(c)(2)(B) of the Job Creation and Worker Assistance Act of 2002 is amended by striking ‘Paragraph (2)’ and inserting ‘Paragraph (1)’.

    (f) EFFECTIVE DATE- The amendments made by this section shall take effect as if included in the provisions of the Job Creation and Worker Assistance Act of 2002 to which they relate.

SEC. 3. AMENDMENTS RELATED TO ECONOMIC GROWTH AND TAX RELIEF RECONCILIATION ACT OF 2001.

    (a) AMENDMENT RELATED TO SECTION 401 OF THE ACT- Clause (i) of section 530(d)(2)(C) is amended by striking ‘higher’ after ‘qualified’.

    (b) AMENDMENT RELATED TO SECTION 611 OF THE ACT- Section 415(d)(4)(A) is amended by adding at the end the following new sentence: ‘This subparagraph shall also apply for purposes of any provision of this title that provides for adjustments in accordance with the method contained in this subsection, except to the extent provided in such provision.’.

    (c) AMENDMENT RELATED TO SECTION 637 OF THE ACT- Section 408(p)(6)(A)(i) is amended by adding at the end the following new sentence: ‘For purposes of the preceding sentence, amounts described in section 6051(a)(3) shall be determined without regard to section 3401(a)(3).’.

    (d) EFFECTIVE DATE- The amendments made by this section shall take effect as if included in the provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 to which they relate.

SEC. 4. AMENDMENT RELATED TO VICTIMS OF TERRORISM TAX RELIEF ACT OF 2001.

    (a) AMENDMENT RELATED TO SECTION 201 OF THE ACT- Clause (iv) of section 6103(i)(7)(B) is amended by inserting ‘and subparagraph (A)’ after ‘this subparagraph’.

    (b) EFFECTIVE DATE- The amendment made by this section shall take effect as if included in section 201 of the Victims of Terrorism Tax Relief Act of 2001.

SEC. 5. AMENDMENTS RELATED TO COMMUNITY RENEWAL TAX RELIEF ACT OF 2000.

    (a) AMENDMENTS RELATED TO SECTION 401 OF THE ACT-

      (1) Subsection (c) of section 1234B is amended by adding at the end the following new sentence: ‘The Secretary may prescribe regulations regarding the status of contracts the value of which are determined directly or indirectly by reference to an index which becomes (or ceases to be) a narrow-based security index (as defined for purposes of section 1256(g)(6)).’.

      (2) Paragraph (6) of section 1256(g) is amended by adding at the end the following new sentence: ‘The Secretary may prescribe regulations regarding the status of options the value of which are determined directly or indirectly by reference to an index which becomes (or ceases to be) a narrow-based security index (as so defined).’.

    (b) EFFECTIVE DATE- The amendments made by this section shall take effect as if included in section 401 of the Community Renewal Tax Relief Act of 2000.

SEC. 6. AMENDMENTS RELATED TO TAXPAYER RELIEF ACT OF 1997.

    (a) AMENDMENTS RELATED TO SECTION 1001 OF THE ACT-

      (1) Paragraph (2) of section 1259(c) is amended by striking ‘The term ‘constructive sale’ shall not include any contract’ and inserting ‘A taxpayer shall not be treated as having made a constructive sale solely because the taxpayer enters into a contract’.

      (2) Subparagraphs (A) and (B)(i) of section 1259(c)(3) are each amended by striking ‘be treated as a constructive sale’ and inserting ‘cause a constructive sale’.

      (3) Clause (i) of section 1259(c)(3)(A) is amended by striking ‘before the end of’ and inserting ‘on or before’.

      (4) Clause (ii) of section 1259(c)(3)(B) is amended by striking ‘substantially similar’.

      (5) Subclause (I) of section 1259(c)(3)(B)(ii) is amended to read as follows:

            ‘(I) which would (but for this subparagraph) cause the requirement of subparagraph (A)(iii) not to be met with respect to the transaction described in clause (i) of this subparagraph,’.

      (6) Subclause (II) of such section is amended by inserting ‘on or’ before ‘before the 30th day’.

      (7) The heading for subparagraph (B) of section 1259(c)(3) is amended by striking ‘POSITIONS WHICH ARE REESTABLISHED’ and inserting ‘CERTAIN CLOSED TRANSACTIONS WHERE RISK OF LOSS ON APPRECIATED FINANCIAL POSITION DIMINISHED’.

    (b) AMENDMENT RELATED TO SECTION 1031 OF THE ACT- Section 4261(e)(4) is amended by adding at the end the following new subparagraph:

        ‘(D) SPECIAL RULE FOR AMOUNTS PAID FOR DOMESTIC SEGMENTS BEGINNING AFTER 2002- If an amount is paid during a calendar year for a domestic segment beginning in a later calendar year, then the rate of tax under subsection (b) on such amount shall be the rate in effect for the calendar year in which such amount is paid.’

    (c) EFFECTIVE DATE-

      (1) AMENDMENTS RELATED TO SECTION 1001- The amendments made by subsection (a) shall take effect as if included in section 1001 of the Taxpayer Relief Act of 1997.

      (2) AMENDMENTS RELATED TO SECTION 1031- The amendment made by subsection (b) shall apply to segments beginning after December 31, 2002.

SEC. 7. OTHER TECHNICAL CORRECTIONS.

    (a) DEFINITION OF VALID TAXPAYER IDENTIFICATION NUMBER FOR EARNED INCOME CREDIT- Section 32(m) is amended to read as follows:

    ‘(m) IDENTIFICATION NUMBERS- Solely for purposes of subsections (c)(1)(F) and (c)(3)(D), a taxpayer identification number means a social security number assigned by the Social Security Administration--

      ‘(1) to a citizen of the United States, or

      ‘(2) to an individual pursuant to subclause (I) (or that portion of subclause (III) that relates to subclause (I)) of section 205(c)(2)(B)(i) of the Social Security Act.’.

    (b) EFFECTIVE DATE- The amendment made by this subsection shall apply to taxable years beginning after the date of the enactment of this Act.

SEC. 8. CLERICAL AMENDMENTS.

    (a) The heading for subparagraph (F) of section 168(k)(2) is amended by striking ‘MINIUMUM’ and inserting ‘MINIMUM’.

    (b) The item relating to section 1234B in the table of sections for subpart IV of subchapter P of chapter 1 is amended to read as follows:

‘Sec. 1234B. Gains or losses from securities futures contracts.’.

    (c) Section 156(c) of the Community Renewal Tax Relief Act of 2000 (114 Stat. 2763A-623) is amended in the first sentence by inserting ‘than’ after ‘not later’.