S. 2075 (112th): CUT Loopholes Act

Feb 07, 2012 (112th Congress, 2011–2013)
Died (Referred to Committee)
Carl Levin
Senior Senator from Michigan
Read Text »
Last Updated
Feb 07, 2012
84 pages
Related Bills
S. 268 (113th) was a re-introduction of this bill in a later Congress.

Referred to Committee
Last Action: Feb 11, 2013

H.R. 2669 (Related)
Stop Tax Haven Abuse Act

Referred to Committee
Last Action: Jul 27, 2011


This bill was introduced on February 7, 2012, in a previous session of Congress, but was not enacted.

Introduced Feb 07, 2012
Referred to Committee Feb 07, 2012
Full Title

A bill to close unjustified corporate tax loopholes, and for other purposes.


No summaries available.

3 cosponsors (3D) (show)

Senate Finance

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Primary Source

THOMAS.gov (The Library of Congress)

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GovTrack’s Bill Summary

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Library of Congress Summary

The summary below was written by the Congressional Research Service, which is a nonpartisan division of the Library of Congress.

Cut Unjustified Tax Loopholes Act or the CUT Loopholes Act - Authorizes the Secretary of the Treasury to impose restrictions on foreign jurisdictions or financial institutions operating in the United States that are of primary money laundering concern or that impede U.S. tax enforcement.
Amends the Internal Revenue Code to:
(1) establish a rebuttable presumption against the validity of transactions by institutions that do not comply with reporting requirements under the Foreign Account Tax Compliance Act;
(2) treat certain foreign corporations managed and controlled primarily in the United States as domestic corporations for tax purposes;
(3) require tax withholding agents and financial institutions to report certain information about beneficial owners of foreign-owned financial accounts;
(4) treat swap payments sent offshore as taxable U.S. source income;
(5) allow the use of tax return information to evaluate foreign financial account reports;
(6) increase penalties for promoting abusive tax shelters and for aiding and abetting the understatement of tax liability;
(7) prohibit tax advisor contingent fee agreements for obtaining a tax savings or benefit;
(8) impose additional requirements for third party summonses used to obtain information in tax investigations that do not identify the person with respect to whose liability the summons is issued (i.e., John Doe summons);
(9) limit the employer tax deduction for stock options granted to employees to the value of such options as recorded on the employer's books at the time such options were granted; and
(10) apply the $1 million limitation on the employer tax deduction for employee remuneration to stock option compensation.
Amends the Securities Exchange Act of 1934 to: (1) require corporations registered with the Securities and Exchange Commission (SEC) to report annually, on a country-by country basis, on employees, sales, financing, tax obligations, and tax payments; and (2) authorize a fine of up to $1 million for failure to disclose any holdings or transactions involving equity or debt instruments known to involve a foreign entity that would otherwise be subject to disclosure requirements.
Requires the Secretary to publish a proposed rule in the Federal Register requiring private and venture capital funds to establish anti-money laundering programs and submit suspicious activity reports.
Extends anti-money laundering requirements to persons engaged in the business of forming new businesses or other legal entities.
Requires federal banking agencies and the SEC to develop examination techniques to detect and prevent abusive tax shelter activities or the aiding or abetting of tax evasion by financial institutions.
Requires the Secretary to: (1) disclose tax return information to federal financial regulators for purposes of tax shelter investigations; (2) disclose to Congress documents relating to a determination to grant, deny, revoke, or restore the tax-exempt status of an organization; and (3) expand the standards applicable to tax practitioners for issuing written advice on transactions which have a potential for tax avoidance or evasion.
Imposes new restrictions on U.S. corporations and other entities with foreign income with respect to: (1) tax deductions allocable to deferred foreign income, (2) the recalculation of foreign income taxes, (3) intangible property transferred overseas, and (4) tax evasion activities by U.S. corporations reincorporating in a foreign country.

House Republican Conference Summary

The summary below was written by the House Republican Conference, which is the caucus of Republicans in the House of Representatives.

No summary available.

House Democratic Caucus Summary

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