Tax Increase Prevention Act of 2014 (P.L. 113-295)

 

(1) by striking "January 1, 2014" in subclause (I) and inserting "January 1, 2015", and

(2) by striking "December 31, 2013" in subclause (II) and inserting "December 31, 2014".

 

(1) by striking "January 1, 2015" in subparagraph (A)(iv) and inserting "January 1, 2016", and

(2) by striking "January 1, 2014" each place it appears and inserting "January 1, 2015".

 

(1) IN GENERAL. -- Subclause (II) of section 168(k)(4)(D)(iii) is amended by striking "January 1, 2014" and inserting "January 1, 2015".

(2) ROUND 4 EXTENSION PROPERTY. -- Paragraph (4) of section 168(k) is amended by adding at the end the following new subparagraph:

 

(1) The heading for subsection (k) of section 168 is amended by striking "JANUARY 1, 2014" and inserting "JANUARY 1, 2015".

(2) The heading for clause (ii) of section 168(k)(2)(B) is amended by striking "PRE-JANUARY 1, 2014" and inserting "PRE-JANUARY 1, 2015".

(3) Subparagraph (C) of section 168(n)(2) is amended by striking "January 1, 2014" and inserting "January 1, 2015".

(4) Subparagraph (D) of section 1400L(b)(2) is amended by striking "January 1, 2014" and inserting "January 1, 2015".

(5) Subparagraph (B) of section 1400N(d)(3) is amended by striking "January 1, 2014" and inserting "January 1, 2015".

 

(1) DOLLAR LIMITATION. -- Section 179(b)(1) is amended --

 

(2) REDUCTION IN LIMITATION. -- Section 179(b)(2) is amended --

 

(1) IN GENERAL. -- Section 179(f)(1) is amended by striking "beginning in 2010, 2011, 2012, or 2013" and inserting "beginning after 2009 and before 2015".

(2) CARRYOVER LIMITATION. --

 

(1) by striking "first 8 taxable years" and inserting "first 9 taxable years", and

(2) by striking "January 1, 2014" and inserting "January 1, 2015".

 

(1) IN GENERAL. -- The amendment made by this section shall take effect on January 1, 2014. Notwithstanding the preceding sentence, such amendment shall not apply with respect to the withholding requirement under section 1445 of the Internal Revenue Code of 1986 for any payment made before the date of the enactment of this Act.

(2) AMOUNTS WITHHELD ON OR BEFORE DATE OF ENACTMENT. -- In the case of a regulated investment company --

 

(1) by striking "January 1, 2014" and inserting "January 1, 2015", and

(2) by striking "December 31, 2013" and inserting "December 31, 2014".

 

(1) by striking "January 1, 2014" and inserting "January 1, 2015", and

(2) by striking "AND 2013" in the heading and inserting "2013, AND 2014".

 

(1) by striking "2012 or 2013" and inserting "2012, 2013, or 2014", and

(2) by striking "2012 AND 2013" in the heading and inserting "2012, 2013, AND 2014".

 

(1) by striking "January 1, 2014" each place it appears and inserting "January 1, 2015",

(2) by striking "first 8 taxable years" in paragraph (1) and inserting "first 9 taxable years", and

(3) by striking "first 2 taxable years" in paragraph (2) and inserting "first 3 taxable years".

 

(1) Paragraph (1).

(2) Paragraph (2)(A).

(3) Paragraph (3)(A).

(4) Paragraph (4)(B).

(5) Paragraph (6).

(6) Paragraph (7).

(7) Paragraph (9).

(8) Paragraph (11)(B).

 

(1) Paragraph (6) of section 6426(c) is amended by striking "December 31, 2013" and inserting "December 31, 2014".

(2) Subparagraph (B) of section 6427(e)(6) is amended by striking "December 31, 2013" and inserting "December 31, 2014".

 

(1) IN GENERAL. -- Sections 6426(d)(5) and 6426(e)(3) are each amended by striking "December 31, 2013" and inserting "December 31, 2014".

(2) OUTLAY PAYMENTS FOR ALTERNATIVE FUELS. -- Subparagraph (C) of section 6427(e)(6) is amended by striking "December 31, 2013" and inserting "December 31, 2014".

 

(1) IN GENERAL. -- Sections 6426(d)(5) and 6426(e)(3), as amended by subsection (b), are each amended by striking "(September 30, 2014 in the case of any sale or use involving liquefied hydrogen)".

(2) OUTLAY PAYMENTS FOR ALTERNATIVE FUELS. -- Paragraph (6) of section 6427(e) is amended --

 

(1) IN GENERAL. -- Except as provided in paragraph (2), the amendments made by this section shall apply to fuel sold or used after December 31, 2013.

(2) LIQUEFIED HYDROGEN. -- The amendments made by subsection (c) shall apply to fuel sold or used after September 30, 2014.

 

(1) any biodiesel mixture credit properly determined under section 6426(c) of the Internal Revenue Code of 1986 for periods after December 31, 2013, and before the date of the enactment of this Act, and

(2) any alternative fuel credit properly determined under section 6426(d) of such Code for such periods, such credit shall be allowed, and any refund or payment attributable to such credit (including any payment under section 6427(e) of such Code) shall be made, only in such manner as the Secretary of the Treasury (or the Secretary's delegate) shall provide. Such Secretary shall issue guidance within 30 days after the date of the enactment of this Act providing for a one-time submission of claims covering periods described in the preceding sentence. Such guidance shall provide for a 180-day period for the submission of such claims (in such manner as prescribed by such Secretary) to begin not later than 30 days after such guidance is issued. Such claims shall be paid by such Secretary not later than 60 days after receipt. If such Secretary has not paid pursuant to a claim filed under this subsection within 60 days after the date of the filing of such claim, the claim shall be paid with interest from such date determined by using the overpayment rate and method under section 6621 of such Code.

 

(1) Clause (ii) of section 55(d)(4)(B) is amended by inserting "subparagraphs (A), (B), and (D) of" before "paragraph (1)".

(2) Subparagraph (C) of section 55(d)(4) is amended by striking "increase" and inserting "increased amount".

 

(1) by striking "2011" and inserting "years after 2010", and

(2) by striking "of such allocation" and inserting "of any such allocation".

 

(1) Subsection (c) of section 101 of the Regulated Investment Company Modernization Act of 2010 is amended --

 

"(3) EXCISE TAX. --

 

(2) The first sentence of paragraph (2) of section 852(c) is amended --

 

(1) Paragraph (8) of section 852(b) is amended by redesignating subparagraph (E) as subparagraph (G) and by striking subparagraphs (C) and (D) and inserting the following new subparagraphs:

(2) Subparagraph (G) of section 852(b)(8), as so redesignated, is amended by striking ", (D)(i)(I), and (D)(ii)(I)" and inserting "and (E)".

(3) The first sentence of paragraph (2) of section 852(c), as amended by subsection (a), is amended --

 

(1) Subparagraph (B) of section 4982(e)(6) is amended by inserting before the period at the end the following: "or which determines income by reference to the value of an item on the last day of the taxable year".

(2) Subparagraph (A) of section 4982(e)(7) is amended by striking "such company" and all that follows through "any net ordinary loss" and inserting "such company may elect to determine its ordinary income and net ordinary loss (as defined in paragraph (2)(C)(ii)) for the calendar year without regard to any portion of any net ordinary loss".

 

(1) IN GENERAL. -- Except as provided in paragraph (2), the amendments made by this section shall take effect as if included in the provision of the Regulated Investment Company Modernization Act of 2010 to which they relate.

(2) SAVINGS PROVISION. -- In the case of an election by a regulated investment company under section 852(b)(8) of the Internal Revenue Code of 1986 with respect to any taxable year beginning before the date of the enactment of this Act, such company may treat the amendments made by paragraphs (1) and (2) of subsection (c) as not applying with respect to any such election.

 

(1) Paragraph (1) of section 2801(a) is amended by striking "(or, if greater, the highest rate of tax specified in the table applicable under section 2502(a) as in effect on the date)".

(2) Subsection (f) of section 302 of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 is amended by striking "subsection" and inserting "section".

 

(1) Subsection (h) of section 2102 of the Creating Small Business Jobs Act of 2010 is amended by inserting ", and payee statements required to be furnished," after "information returns required to be filed".

(2) Paragraphs (1) and (2) of subsection (b), and subsection (c)(1)(C), of section 6722 are each amended by striking "the required filing date" and inserting "the date prescribed for furnishing such statement".

(3) Subparagraph (B) of section 6722(c)(2) is amended by striking "filed" and inserting "furnished".

 

(1) Paragraph (6) of section 164(b) is amended by striking subparagraph (E) and by redesignating subparagraphs (F) and (G) as subparagraphs (E) and (F), respectively.

(2) Subparagraphs (E) and (f) of section 164(b)(6), as so redesignated, are each amended by striking "This paragraph" and inserting "Subsection (a)(6)".

 

(1) Subsection (f) of section 30D is amended --

 

(2) Paragraph (3) of section 30D(f) is amended by adding at the end the following: "For purposes of subsection (c), property to which this paragraph applies shall be treated as of a character subject to an allowance for depreciation.".

 

(1) Subsection (b) of section 38 is amended by striking "plus" at the end of paragraph (35), by redesignating paragraph (36) as paragraph (37), and by inserting after paragraph (35) the following new paragraph:

"(36) the portion of the qualified plug-in electric vehicle credit to which section 30(c)(1) applies, plus".

(2)(A) Subsection (e) of section 30 is amended --

 

(1) Paragraph (2) of section 853A(a) is amended by inserting "(determined after the application of this section)" before the comma at the end.

(2) Subsection (a) of section 853A is amended --

 

(3) Subsection (b) of section 853A is amended to read as follows:

 

"(1) the regulated investment company --

 

"(2) each shareholder of such investment company shall --

 

(4) Subsection (c) of section 853A is amended to read as follows:

 

(5) Clause (ii) of section 853A(e)(1)(A) is amended by inserting "other than a qualified bond described in section 54AA(g)" after "as defined in section 54AA(d))".

 

(1) Subparagraph (A) of section 2202(b)(1) of division B of the American Recovery and Reinvestment Act of 2009 is amended by inserting "political subdivision of a State," after "any State,".

(2) Section 2202 of division B of the American Recovery and Reinvestment Act of 2009 is amended by adding at the end the following new subsection:

 

"(1) PAYMENTS TO MIRROR CODE POSSESSIONS. -- The Secretary of the Treasury shall pay to each possession of the United States with a mirror code tax system amounts equal to the loss to that possession by reason of credits allowed under subsection (a) with respect to taxable years beginning in 2009. Such amounts shall be determined by the Secretary of the Treasury based on information provided by the government of the respective possession.

"(2) COORDINATION WITH CREDIT ALLOWED AGAINST UNITED STATES INCOME TAXES. -- No credit shall be allowed against United States income taxes for any taxable year under this section to any person to whom a credit is allowed against taxes imposed by the possession by reason of the credit allowed under subsection (a) for such taxable year.

"(3) DEFINITIONS AND SPECIAL RULES. --

 

(1) AMENDMENT RELATING TO SECTION 1131. -- Paragraph (2) of section 45Q(d) is amended by striking 'Administrator of the Environmental Protection Agency" and all that follows through "shall establish" and inserting "Administrator of the Environmental Protection Agency, the Secretary of Energy, and the Secretary of the Interior, shall establish".

(2) AMENDMENT RELATING TO SECTION 1141. -- Paragraph (37) of section 1016(a) is amended by striking "section 30D(e)(4)" and inserting "section 30D(f)(1)".

(3) AMENDMENT RELATING TO SECTION 3001. -- Subparagraph (A) of section 3001(a)(14) of the American Recovery and Reinvestment Act of 2009 is amended by striking "is amended by redesignating paragraph (9) as paragraph (10)" and inserting ", as amended by this Act, is amended by redesignating paragraphs (9) and (10) as paragraphs (10) and (11), respectively,".

 

(1) Clause (ii) of section 168(i)(18)(A) is amended by striking "10 years" and inserting "16 years".

(2) Clause (ii) of section 168(i)(19)(A) is amended by striking "10 years" and inserting "16 years".

 

(1) Subsection (c) of section 1012 is amended --

 

(2) Paragraph (1) of section 1012(d) is amended --

 

(3) Paragraph (3) of section 1012(d) is amended to read as follows:

"(3) SEPARATE ACCOUNTS; ELECTION FOR TREATMENT AS SINGLE ACCOUNT. --

 

(4) Subsection (g) of section 6045 is amended by adding at the end the following new paragraph:

"(6) SPECIAL RULE FOR CERTAIN STOCK HELD IN CONNECTION WITH DIVIDEND REINVESTMENT PLAN. -- For purposes of this subsection, stock acquired before January 1, 2012, in connection with a dividend reinvestment plan shall be treated as stock described in clause (ii) of paragraph (3)(C) (unless the broker with respect to such stock elects not to have this paragraph apply with respect to such stock).".

 

(1) AMENDMENT RELATING TO SECTION 108. -- Paragraph (2) of section 45(b) is amended by striking "$3 amount" and inserting "$2 amount".

(2) AMENDMENT RELATING TO SECTION 306. --

 

"(1) IN GENERAL. -- The amendment made by subsection (a) shall take effect on January 1, 2008. Notwithstanding the preceding sentence, such amendment shall not apply with respect to the withholding requirement under section 1445 of the Internal Revenue Code of 1986 for any payment made before October 4, 2008.

"(2) AMOUNTS WITHHELD ON OR BEFORE DATE OF ENACTMENT. -- In the case of a regulated investment company --

 

(1) AMENDMENTS RELATING TO SECTION 706. --

 

(2) AMENDMENT RELATING TO SECTION 709. -- Subsection (k) of section 143 is amended by redesignating the second paragraph (12) (relating to special rules for residences destroyed in Federally declared disasters) as paragraph (13).

(3) AMENDMENT RELATING TO SECTION 712. -- Section 712 of the Tax Extenders and Alternative Minimum Tax Relief Act of 2008 is amended by striking "section 702(c)(1)(A)" and inserting "section 702(b)(1)(A)".

 

(1) AMENDMENT RELATING TO SECTION 110. -- Subparagraph (B) of section 121(d) (12) is amended by inserting "of paragraph (9)" after "and (D)".

(2) AMENDMENT RELATING TO SECTION 301. -- Paragraph (2) of section 877(e) is amended by striking "subparagraph (A) or (B) of".

 

(1) by striking "32, or 6428" in subparagraph (L) and inserting "or 32", and

(2) by striking "and" at the end of subparagraph (O), by striking the period at the end of subparagraph (P) and inserting ", and", and by inserting after subparagraph (P) the following new subparagraph:

 

(1) by inserting "of a short taxable year or" after "in cases", and

(2) by striking "AND DISPOSITIONS" and inserting ", DISPOSITIONS, AND SHORT TAXABLE YEARS".

 

(1) by striking "(2 U.S.C. 432(e))" in subsection (h)(2)(A)(i) and inserting "(52 U.S.C. 30102(e))", and

(2) by striking "(2 U.S.C. 431 et seq.)" in sub sections (i)(6) and (j)(5)(A) and inserting "(52 U.S.C. 30101 et seq.)".

 

(1) ADJUSTMENTS IN TAX TABLES SO THAT INFLATION WILL NOT RESULT IN TAX INCREASES. -- Paragraph (7) of section 1(f) is amended to read as follows:

"(7) SPECIAL RULE FOR CERTAIN BRACKETS. -- In prescribing tables under paragraph (1) which apply to taxable years beginning in a calendar year after 1994, the cost-of-living adjustment used in making adjustments to the dollar amounts at which the 36 percent rate bracket begins or at which the 39.6 percent rate bracket begins shall be determined under paragraph (3) by substituting '1993' for '1992'.".

(2) CERTAIN PLUG-IN ELECTRIC VEHICLES. --

 

(3) EARNED INCOME CREDIT. --

 

(4) FIRST-TIME HOMEBUYER CREDIT. -- Section 6213(g)(2), as amended by section 214(a)(2) of this Act, is amended by striking subparagraph (P).

(5) MAKING WORK PAY CREDIT. --

 

(6) GENERAL BUSINESS CREDITS. -- Subsection (d) of section 38 is amended by striking paragraph (3).

(7) LOW-INCOME HOUSING CREDIT. -- Subclause (I) of section 42(h)(3)(C)(ii) is amended by striking "($1.50 for 2001)".

(8) MINIMUM TAX CREDIT. --

 

(9) ADJUSTMENTS BASED ON ADJUSTED CURRENT EARNINGS. -- Clause (ii) of section 56(g)(4)(F) is amended by striking "In the case of any taxable year beginning after December 31, 1992, clause" and inserting "Clause".

(10) ITEMS OF TAX PREFERENCE; DEPLETION. -- Paragraph (1) of section 57(a) is amended by striking "Effective with respect to taxable years beginning after December 31, 1992, this" and inserting "This".

(11) INTANGIBLE DRILLING COSTS. --

 

(12) ENVIRONMENTAL TAX. --

 

(13) STANDARD DEDUCTION. --

 

(14) ANNUITIES; CERTAIN PROCEEDS OF ENDOWMENT AND LIFE INSURANCE CONTRACTS. -- Section 72 is amended --

 

(15) UNEMPLOYMENT COMPENSATION. -- Section 85 is amended by striking subsection (c).

(16) ACCIDENT AND HEALTH PLANS. -- Section 105(f) is amended by striking "or (d)".

(17) FLEXIBLE SPENDING ARRANGEMENTS. -- Section 106(c)(1) is amended by striking "Effective on and after January 1, 1997, gross" and inserting "Gross".

(18) CERTAIN COMBAT ZONE COMPENSATION OF MEMBERS OF THE ARMED FORCES. -- Subsection (c) of section 112 is amended --

 

(19) LEGAL SERVICE PLANS. -- (20) PRINCIPAL RESIDENCE. -- Section 121(b)(3) is amended --

 

(21) CERTAIN REDUCED UNIFORMED SERVICES RETIREMENT PAY. -- Section 122(b)(1) is amended by striking "after December 31, 1965,".

(22) GREAT PLAINS CONSERVATION PROGRAM. -- Section 126(a) is amended by striking paragraph (6) and by redesignating paragraphs (7), (8), (9), and (10) as paragraphs (6), (7), (8), and (9), respectively.

(23) TREBLE DAMAGE PAYMENTS UNDER THE ANTITRUST LAW. -- Section 162(g) is amended by striking the last sentence.

(24) STATE LEGISLATORS' TRAVEL EXPENSES AWAY FROM HOME. -- Paragraph (4) of section 162(h) is amended by striking "For taxable years beginning after December 31, 1980, this" and inserting "This".

(25) INTEREST. --

 

(26) QUALIFIED MOTOR VEHICLE TAXES. -- Section 164, as amended by section 209(c) of this Act, is amended by striking subsections (a)(6) and (b)(6).

(27) DISASTER LOSSES. --

"(5) FEDERALLY DECLARED DISASTERS. -- For purposes of this subsection --

 

(28) CHARITABLE, ETC., CONTRIBUTIONS AND GIFTS. -- Section 170 is amended --

 

(29) AMORTIZABLE BOND PREMIUM. --

 

(30) NET OPERATING LOSS CARRYBACKS, CARRYOVERS, AND CARRYFORWARDS. --

 

(31) RESEARCH AND EXPERIMENTAL EXPENDITURES. -- Subparagraph (A) of section 174(a)(2) is amended to read as follows:

 

(32) AMORTIZATION OF CERTAIN RESEARCH AND EXPERIMENTAL EXPENDITURES. -- Paragraph (2) of section 174(b) is amended by striking "beginning after December 31, 1953".

(33) SOIL AND WATER CONSERVATION EXPENDITURES. -- Paragraph (1) of section 175(d) is amended to read as follows:

"(1) WITHOUT CONSENT. -- A taxpayer may, without the consent of the Secretary, adopt the method provided in this section for the taxpayer's first taxable year for which expenditures described in subsection (a) are paid or incurred.".

(34) CLEAN-FUEL VEHICLES. --

 

"(7) REFERENCE. -- For purposes of this section, any reference to section 179A shall be treated as a reference to such section as in effect immediately before its repeal.".

 

(35) QUALIFIED DISASTER EXPENSES. -- Part VI of subchapter A of chapter 1 is amended by striking section 198A (and by striking the item relating to such section in the table of sections for such part).

(36) ACTIVITIES NOT ENGAGED IN FOR PROFIT. -- Section 183(e)(1) is amended by striking the last sentence.

(37) DOMESTIC PRODUCTION ACTIVITIES. --

 

(38) RETIREMENT SAVINGS. --

 

(39) REPORTS REGARDING QUALIFIED VOLUNTARY RETIREMENT CONTRIBUTIONS. --

 

(40) INTEREST ON EDUCATION LOANS. -- Paragraph (1) of section 221(b) is amended by striking "shall not exceed" and all that follows and inserting "shall not exceed $2,500.".

(41) DIVIDENDS RECEIVED ON CERTAIN PREFERRED STOCK; AND DIVIDENDS PAID ON CERTAIN PREFERRED STOCK OF PUBLIC UTILITIES. --

 

"(5) COMPUTATION OF DEDUCTION FOR DIVIDENDS RECEIVED. -- The deductions allowed by section 243 (relating to dividends received by corporations) and 245 (relating to dividends received from certain foreign corporations) shall be computed without regard to section 246(b) (relating to limitation on aggregate amount of deductions).".

 

"(1) IN GENERAL. -- In the case of any dividend received from a 20-percent owned corporation, subsection (a)(1) shall be applied by substituting '80 percent' for '70 percent'.".

 

(42) ORGANIZATION EXPENSES. -- Section 248(c) is amended by striking "beginning after December 31, 1953," and by striking the last sentence.

(43) BOND REPURCHASE PREMIUM. -- Section 249(b)(1) is amended by striking ", in the case of bonds or other evidences of indebtedness issued after February 28, 1913,".

(44) AMOUNT OF GAIN WHERE LOSS PREVIOUSLY DISALLOWED. -- Section 267(d) is amended by striking "(or by reason of section 24(b) of the Internal Revenue Code of 1939)" in paragraph (1), by striking "after December 31, 1953," in paragraph (2), by striking the second sentence, and by striking "or by reason of section 118 of the Internal Revenue Code of 1939" in the last sentence.

(45) ACQUISITIONS MADE TO EVADE OR AVOID INCOME TAX. -- Paragraphs (1) and (2) of section 269(a) are each amended by striking "or acquired on or after October 8, 1940,".

(46) MEALS AND ENTERTAINMENT. -- Paragraph (3) of section 274(n) is amended --

 

(47) INTEREST ON INDEBTEDNESS INCURRED BY CORPORATIONS TO ACQUIRE STOCK OR ASSETS OF ANOTHER CORPORATION. -- (48) BANK HOLDING COMPANIES. --

 

(49) EFFECT ON EARNINGS AND PROFITS. -- Subsection (d) of section 312 is amended by striking paragraph (2) and redesignating paragraph (3) as paragraph (2).

(50) DISQUALIFIED STOCK. -- Paragraph (3) of section 355(d) is amended by striking "after October 9, 1990, and" each place it appears.

(51) BASIS TO CORPORATIONS. -- Section 362 is amended by striking "on or after June 22, 1954" in subsection (a) and by striking ", on or after June 22, 1954," each place it appears in subsection (c).

(52) TEMPORARY WAIVER OF MINIMUM REQUIRED DISTRIBUTION. -- Section 401(a)(9) is amended by striking subparagraph (H).

(53) INDIVIDUAL RETIREMENT ACCOUNTS. -- Clause (i) of section 408(p)(2)(E) is amended to read as follows:

(54) TAX CREDIT EMPLOYEE STOCK OWNERSHIP PLANS. -- Section 409 is amended by striking subsection (q).

(55) CATCH-UP CONTRIBUTIONS. -- Clauses (i) and (ii) of section 414(v)(2)(B) are amended to read as follows:

(56) EMPLOYEE STOCK PURCHASE PLANS. -- Section 423(a) is amended by striking "after December 31, 1963,".

(57) PENSION RELATED TRANSITION RULES. --

 

(58) LIMITATION ON DEDUCTIONS FOR CERTAIN FARMING. -- "(3) FARMING. -- For purposes of this subsection, the term 'farming' has the meaning given to such term by section 464(e).

"(4) LIMITED ENTREPRENEUR. -- For purposes of this subsection, the term 'limited entrepreneur' means a person who --

 

(59) DEDUCTIONS LIMITED TO AMOUNT AT RISK. -- Subparagraph (A) of section 465(c)(3) is amended by striking "In the case of taxable years beginning after December 31, 1978, this" and inserting "This".

(60) PASSIVE ACTIVITY LOSSES AND CREDITS LIMITED. --

 

(61) ADJUSTMENTS REQUIRED BY CHANGES IN METHOD OF ACCOUNTING. -- Section 481(b)(3) is amended by striking subparagraph (C).

(62) EXEMPTION PROM TAX ON CORPORATIONS, CERTAIN TRUSTS, ETC. -- Section 501 is amended by striking subsection (s).

(63) REQUIREMENTS FOR EXEMPTION. --

 

"(1) GENERAL RULE. -- An organization described in paragraph (17) or (18) of section 501(c), or described in section 401(a) and referred to in section 4975(g) (2) or (3), shall not be exempt from taxation under section 501(a) if it has engaged in a prohibited transaction.".

 

(64) ACCUMULATED TAXABLE INCOME. -- Paragraph (1) of section 535(b) and paragraph (1) of section 545(b) are each amended by striking "section 531" and all that follows and inserting "section 531 or the personal holding company tax imposed by section 541.".

(65) DEFINITION OF PROPERTY. -- Subsection (b) of section 614 is amended --

 

(66) AMOUNTS RECEIVED BY SURVIVING ANNUITANT UNDER JOINT AND SURVIVOR ANNUITY CONTRACT. -- Subparagraph (A) of section 691(d)(1) is amended by striking "after December 31, 1953, and".

(67) INCOME TAXES OF MEMBERS OF ARMED FORCES ON DEATH. -- Section 692(a)(1) is amended by striking "after June 24, 1950".

(68) SPECIAL RULES FOR COMPUTING RESERVES. -- Paragraph (7) of section 807(e) is amended by striking subparagraph (B) and redesignating subparagraph (C) as subparagraph (B).

(69) INSURANCE COMPANY TAXABLE INCOME. --

 

(70) CAPITALIZATION OF CERTAIN POLICY ACQUISITION EXPENSES. -- Section 848 is amended by striking subsection (j).

(71) TAX ON NONRESIDENT ALIEN INDIVIDUALS. -- Subparagraph (B) of section 871(a)(1) is amended to read as follows:

 

(72) LIMITATION ON CREDIT. -- Paragraph (2) of section 904(d) is amended by striking subparagraph (J).

(73) FOREIGN EARNED INCOME. -- Clause (i) of section 911(b)(2)(D) is amended to read as follows:

(74) BASIS OF PROPERTY ACQUIRED PROM DECEDENT. --

 

"(2) in the case of an election under section 2032, its value at the applicable valuation date prescribed by such section,".

 

(75) ADJUSTED BASIS. -- Section 1016(a) is amended by striking paragraph (12).

(76) PROPERTY ON WHICH LESSEE HAS MADE IMPROVEMENTS. -- Section 1019 is amended by striking the last sentence.

(77) INVOLUNTARY CONVERSION. -- Section 1033 is amended by striking subsection (j) and by redesignating subsections (k) and (l) as subsections (j) and (k), respectively.

(78) PROPERTY ACQUIRED DURING AFFILIATION. -- Section 1051 is hereby repealed, and the table of sections for part IV of subchapter O of chapter 1 is amended by striking the item relating to section 1051.

(79) CAPITAL GAINS AND LOSSES. -- Section 1222 is amended by striking the last sentence.

(80) HOLDING PERIOD OF PROPERTY. --

 

(81) PROPERTY USED IN THE TRADE OR BUSINESS AND INVOLUNTARY CONVERSIONS. -- Subparagraph (A) of section 1231(c)(2) is amended by striking "beginning after December 31, 1981".

(82) SALE OR EXCHANGE OF PATENTS. -- Section 1235 is amended --

 

(83) DEALERS IN SECURITIES. -- Subsection (b) of section 1236 is amended by striking "after November 19, 1951,".

(84) SALE OF PATENTS. -- Subsection (a) of section 1249 is amended by striking "after December 31, 1962,".

(85) GAIN FROM DISPOSITION OF FARMLAND. -- Paragraph (1) of section 1252(a) is amended --

 

(86) TREATMENT OF AMOUNTS RECEIVED ON RETIREMENT OR SALE OR EXCHANGE OF DEBT INSTRUMENTS. -- Subsection (c) of section 1271 is amended to read as follows:

 

"(1) IN GENERAL. -- On the sale or exchange of debt instruments issued by a government or political subdivision thereof after December 31, 1954, and before July 2, 1982, or by a corporation after December 31, 1954, and on or before May 27, 1969, any gain realized which does not exceed --

 

"(2) SUBSECTION (a)(2)(A) NOT TO APPLY. -- Subsection (a)(2)(A) shall not apply to any debt instrument referred to in paragraph (1) of this subsection.

"(3) CROSS REFERENCE. -- For current inclusion of original issue discount, see section 1272.".

(87) AMOUNT AND METHOD OF ADJUSTMENT. -- Section 1314 is amended by striking subsection (d) and by redesignating subsection (e) as subsection (d).

(88) ELECTION; REVOCATION; TERMINATION. -- Clause (iii) of section 1362(d)(3)(A) is amended by striking "unless" and all that follows and inserting "unless the corporation was an S corporation for such taxable year.".

(89) OLD-AGE, SURVIVORS, AND DISABILITY INSURANCE. -- Subsection (a) of section 1401 is amended by striking "the following percent" and all that follows and inserting "12.4 percent of the amount of the self-employment income for such taxable year.".

(90) HOSPITAL INSURANCE. -- Paragraph (1) of section 1401(b) is amended by striking: "the following percent" and all that follows and inserting "2.9 percent of the amount of the self-employment income for such taxable year.".

(91) MINISTERS, MEMBERS OF RELIGIOUS ORDERS, AND CHRISTIAN SCIENCE PRACTITIONERS. -- Paragraph (3) of section 1402(e) is amended --

 

(92) WITHHOLDING OF TAX ON NONRESIDENT ALIENS. -- The first sentence of subsection (b) of section 1441 and the first sentence of paragraph (5) of section 1441(c) are each amended by striking "gains subject to tax" and all that follows through "October 4, 1966" and inserting "and gains subject to tax under section 871(a)(1)(D)".

(93) AFFILIATED GROUP DEFINED. -- Subparagraph (A) of section 1504(a)(3) is amended by striking "for a taxable year which includes any period after December 31, 1984" in clause (i) and by striking "in a taxable year beginning after December 31, 1984" in clause (ii).

(94) DISALLOWANCE OF THE BENEFITS OF THE GRADUATED CORPORATE RATES AND ACCUMULATED EARNINGS CREDIT. --

(95) CREDIT FOR STATE DEATH TAXES. -- (96) GROSS ESTATE. -- Subsection (c) of section 2031 is amended by striking paragraph (3) and by amending paragraph (1)(B) to read as follows: (97)(A) Part IV of subchapter A of chapter 11 is amended by striking section 2057 (and by striking the item relating to such section in the table of sections for such subpart).

 

(98) PROPERTY WITHIN THE UNITED STATES. -- Subsection (c) of section 2104 is amended by striking "With respect to estates of decedents dying after December 31, 1969, deposits" and inserting "Deposits".

(99) FICA TAXES. --

(100) RAILROAD RETIREMENT. --

(B) Subsection (b) of section 3211 is amended to read as follows:

(C) Subsection (b) of section 3221 is amended to read as follows:

(101) CREDITS AGAINST FEDERAL UNEMPLOYMENT TAX. --

 

(102) DOMESTIC SERVICE EMPLOYMENT TAXES. -- Section 3510(b) is amended by striking paragraph (4).

(103) LUXURY PASSENGER AUTOMOBILES. --

(104) TRANSPORTATION BY AIR. -- Section 4261(e) is amended --

 

(105) TAXES ON FAILURE TO DISTRIBUTE INCOME. --

 

(106) TAXES ON TAXABLE EXPENDITURES. -- Section 4945(f) is amended by striking "(excluding therefrom any preceding taxable year which begins before January 1, 1970)".

(107) DEFINITIONS AND SPECIAL RULES. -- Section 4682(h) is amended --

(108) RETURNS. -- Subsection (a) of section 6039D is amended by striking "beginning after December 31, 1984,".

(109) INFORMATION RETURNS. -- Subsection (c) of section 6060 is amended by striking " 'year' " and all that follows and inserting "year.".

(110) COLLECTION. -- Section 6302 is amended --

"(3) COORDINATION WITH OTHER ELECTRONIC FUND TRANSFER REQUIREMENTS. -- Under regulations, any tax required to be paid by electronic fund transfer under section 5061(e) or 5703(b) shall be paid in such a manner as to ensure that the requirements of the second sentence of paragraph (1)(A) of this subsection are satisfied.".

(111) ABATEMENTS. -- Section 6404(f) is amended by striking paragraph (3).

(112) 2008 RECOVERY REBATE FOR INDIVIDUALS. --

 

(113) ADVANCE PAYMENT OF PORTION OF INCREASED CHILD CREDIT FOR 2003. -- Subchapter B of chapter 65 is amended by striking section 6429 (and by striking the item relating to such section in the table of sections for such subchapter).

(114) FAILURE BY CORPORATION TO PAY ESTIMATED INCOME TAX. -- Clause (i) of section 6655(g)(4)(A) is amended by striking "(or the corresponding provisions of prior law)".

(115) RETIREMENT. -- Section 7447(i)(3)(B)(ii) is amended by striking "at 4 percent per annum to December 31, 1947, and 3 percent per annum thereafter", and inserting "at 3 percent per annum".

(116) ANNUITIES TO SURVIVING SPOUSES AND DEPENDENT CHILDREN OF JUDGES. --

 

(117) MERCHANT MARINE CAPITAL CONSTRUCTION FUNDS. -- Paragraph (4) of section 7518(g) is amended by striking "any nonqualified withdrawal" and all that follows through " 'shall be determined" and inserting "any nonqualified withdrawal shall be determined".

(118) VALUATION TABLES. --

(119) DEFINITION OF EMPLOYEE. -- Section 7701(a)(20) is amended by striking "chapter 21" and all that follows and inserting "chapter 21.".

 

(1) GENERAL RULE. -- Except as otherwise provided in subsection (a) or paragraph (2) of this subsection, the amendments made by this section shall take effect on the date of enactment of this Act.

(2) SAVINGS PROVISION. -- If --

 

"(1) IN GENERAL. -- The term 'qualified ABLE program' means a program established and maintained by a State, or agency or instrumentality thereof --

 

"(2) CASH CONTRIBUTIONS. -- A program shall not be treated as a qualified ABLE program unless it provides that no contribution will be accepted --

 

For purposes of this paragraph, rules similar to the rules of section 408(d)(4) (determined without regard to subparagraph (B) thereof) shall apply.

"(3) SEPARATE ACCOUNTING. -- A program shall not be treated as a qualified ABLE program unless it provides separate accounting for each designated beneficiary.

"(4) LIMITED INVESTMENT DIRECTION. -- A program shall not be treated as a qualified ABLE program unless it provides that any designated beneficiary under such program may, directly or indirectly, direct the investment of any contributions to the program (or any earnings thereon) no more than 2 times in any calendar year.

"(5) NO PLEDGING OF INTEREST AS SECURITY. -- A program shall not be treated as a qualified ABLE program if it allows any interest in the program or any portion thereof to be used as security for a loan.

"(6) PROHIBITION ON EXCESS CONTRIBUTIONS. -- A program shall not be treated as a qualified ABLE program unless it provides adequate safeguards to prevent aggregate contributions on behalf of a designated beneficiary in excess of the limit established by the State under section 529(b)(6). For purposes of the preceding sentence, aggregate contributions include contributions under any prior qualified ABLE program of any State or agency or instrumentality thereof.

 

"(1) DISTRIBUTIONS. -- "(2) GIFT TAX RULES. -- For purposes of chapters 12 and 13 --

 

"(3) ADDITIONAL TAX FOR DISTRIBUTIONS NOT USED FOR DISABILITY EXPENSES. -- Any net income described in clause (ii) shall be included in gross income for the taxable year in which such excess contribution was made.

"(4) LOSS OF ABLE ACCOUNT TREATMENT. -- If an ABLE account is established for a designated beneficiary, no account subsequently established for such beneficiary shall be treated as an ABLE account. The preceding sentence shall not apply in the case of an account established for purposes of a roll-over described in paragraph (1)(C)(i) of this section if the transferor account is closed as of the end of the 60th day referred to in paragraph (1)(C)(i).

 

"(1) IN GENERAL. -- Each officer or employee having control of the qualified ABLE program or their designee shall make such reports regarding such program to the Secretary and to designated beneficiaries with respect to contributions, distributions, the return of excess contributions, and such other matters as the Secretary may require.

"(2) CERTAIN AGGREGATED INFORMATION. -- For research purposes, the Secretary shall make available to the public reports containing aggregate information, by diagnosis and other relevant characteristics, on contributions and distributions from the qualified ABLE program. In carrying out the preceding sentence an item may not be made available to the public if such item can be associated with, or otherwise identify, directly or indirectly, a particular individual.

"(3) NOTICE OF ESTABLISHMENT OF ABLE ACCOUNT. -- A qualified ABLE program shall submit a notice to the Secretary upon the establishment of an ABLE account. Such notice shall contain the name and State of residence of the designated beneficiary and such other information as the Secretary may require.

"(4) ELECTRONIC DISTRIBUTION STATEMENTS. -- For purposes of section 4 of the Achieving a Better Life Experience Act of 2014, States shall submit electronically on a monthly basis to the Commissioner of Social Security, in the manner specified by the Commissioner, statements on relevant distributions and account balances from all ABLE accounts.

"(5) REQUIREMENTS. -- The reports and notices required by paragraphs (1), (2), and (3) shall be filed at such time and in such manner and furnished to such individuals at such time and in such manner as may be required by the Secretary.

 

"(1) ELIGIBLE INDIVIDUAL. -- An individual is an eligible individual for a taxable year if during such taxable year --

 

"(2) DISABILITY CERTIFICATION. --

 

"(3) DESIGNATED BENEFICIARY. -- The term 'designated beneficiary' in connection with an ABLE account established under a qualified ABLE program means the eligible individual who established an ABLE account and is the owner of such account.

"(4) MEMBER OF FAMILY. -- The term 'member of the family' means, with respect to any designated beneficiary, an individual who bears a relationship to such beneficiary which is described in subparagraph section 152(d)(2)(B). For purposes of the preceding sentence, a rule similar to the rule of section 152(f)(1)(B) shall apply.

"(5) QUALIFIED DISABILITY EXPENSES. -- The term 'qualified disability expenses' means any expenses related to the eligible individual's blindness or disability which are made for the benefit of an eligible individual who is the designated beneficiary, including the following expenses: education, housing, transportation, employment training and support, assistive technology and personal support services, health, prevention and wellness, financial management and administrative services, legal fees, expenses for oversight and monitoring, funeral and burial expenses, and other expenses, which are approved by the Secretary under regulations and consistent with the purposes of this section.

"(6) ABLE ACCOUNT. -- The term 'ABLE account' means an account established by an eligible individual, owned by such eligible individual, and maintained under a qualified ABLE program.

"(7) CONTRACTING STATE. -- The term 'contracting State' means a State without a qualified ABLE program which has entered into a contract with a State with a qualified ABLE program to provide residents of the contracting State access to a qualified ABLE program.

 

"(1) to enforce the 1 ABLE account per eligible individual limit,

"(2) providing for the information required to be presented to open an ABLE account,

"(3) to generally define qualified disability expenses,

"(4) developed in consultation with the Commissioner of Social Security, relating to disability certifications and determinations of disability, including those conditions deemed to meet the requirements of subsection (e)(1)(B),

"(5) to prevent fraud and abuse with respect to amounts claimed as qualified disability expenses,

"(6) under chapters 11, 12, and 13 of this title, and

"(7) to allow for transfers from one ABLE account to another ABLE account.".

 

(1) IN GENERAL. -- Subsection (a) of section 4973 (relating to tax on excess contributions to certain tax-favored accounts and annuities) is amended by striking "or" at the end of paragraph (4), by inserting "or" at the end of paragraph (5), and by inserting after paragraph (5) the following new paragraph:

"(6) an ABLE account (within the meaning of section 529A),".

(2) EXCESS CONTRIBUTION. -- Section 4973 is amended by adding at the end the following new subsection:

 

"(1) IN GENERAL. -- In the case of an ABLE account (within the meaning of section 529A), the term 'excess contributions' means the amount by which the amount contributed for the taxable year to such account (other than contributions under section 529A(c)(1)(C)) exceeds the contribution limit under section 529A(b)(2)(B).

"(2) SPECIAL RULE. -- For purposes of this subsection, any contribution which is distributed out of the ABLE account in a distribution to which the last sentence of section 529A(b)(2) applies shall be treated as an amount not contributed.".

 

(1) in clause (viii), by striking "or" at the end;

(2) in clause (ix), by adding "or" at the end; and

(3) by adding at the end the following new clause:

 

(1) Section 26(b)(2) is amended by striking "and" at the end of subparagraph (W), by striking the period at the end of subparagraph (X) and inserting ", and", and by inserting after subparagraph (X) the following:

 

(2) Section 877A is amended --

 

(3) Section 4965(c) is amended by striking "or" at the end of paragraph (6), by striking the period at the end of paragraph (7) and inserting ", or", and by inserting after paragraph (7) the following new paragraph:

"(8) a program described in section 529A.".

(4) The heading for part VIII of subchapter F of chapter 1 is amended by striking "HIGHER EDUCATION" and inserting "CERTAIN".

(5) The item in the table of parts for sub-chapter F of chapter 1 relating to part VIII is amended to read as follows:

(7) Paragraph (4) of section 1027(g) of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5517(g)(4)) is amended by inserting ", 529A" after "529".

 

(1) IN GENERAL. -- The amendments made by this section shall apply to taxable years beginning after December 31, 2014.

(2) REGULATIONS. -- The Secretary of the Treasury (or the Secretary's designee) shall promulgate the regulations or other guidance required under section 529A(g) of the Internal Revenue Code of 1986, as added by subsection (a), not later than 6 months after the date of the enactment of this Act.

 

(1) a distribution for housing expenses (within the meaning of such subsection) shall not be so disregarded, and

(2) in the case of such program, any amount (including such earnings) in such ABLE account shall be considered a resource of the designated beneficiary to the extent that such amount exceeds $100,000.

 

(1) IN GENERAL. -- The benefits of an individual under the supplemental security income program under title XVI of the Social Security Act shall not be terminated, but shall be suspended, by reason of excess resources of the individual attributable to an amount in the ABLE account (within the meaning of section 529A of the Internal Revenue Code of 1986) of the individual not disregarded under subsection (a) of this section.

(2) NO IMPACT ON MEDICAID ELIGIBILITY. -- An individual who would be receiving payment of such supplemental security income benefits but for the application of paragraph (1) shall be treated for purposes of title XIX of the Social Security Act as if the individual continued to be receiving payment of such benefits.

 

(1) in paragraph (8), by striking "or" at the end;

(2) in paragraph (9), by striking the period at the end and inserting a semicolon and "or"; and

(3) by inserting after paragraph (9) the following:

"(10) funds placed in an account of a qualified ABLE program (as defined in section 529A(b) of the Internal Revenue Code of 1986) not later than 365 days before the date of the filing of the petition in a case under this title, but --

 

(1) Paragraph (4) of section 529(b) is amended by striking "may not directly or indirectly" and all that follows and inserting "may, directly or indirectly, direct the investment of any contributions to the program (or any earnings thereon) no more than 2 times in any calendar year.".

(2) The heading of paragraph (4) of section 529(b)is amended by striking "NO" and inserting "LIMITED".

 

(A) by striking "2017" and inserting "2016"; and

(B) by redesignating such subclause as subclause (IX);

 

(A) in the matter preceding clause (i), by striking "2017 through 2020" and inserting "2016 through 2018";

(B) in clause (iii), by striking "2017" and inserting "2016"; and

(C) in clause (v), by inserting "(or, for 2016, 1.0 percent)" after "0.5 percent"; and

 

"(1) a certified professional employer organization shall be treated as the employer (and no other person shall be treated as the employer) of any work site employee performing services for any customer of such organization, but only with respect to remuneration remitted by such organization to such work site employee, and

"(2) the exemptions, exclusions, definitions, and other rules which are based on type of employer and which would (but for paragraph (1)) apply shall apply with respect to such taxes imposed on such remuneration.

 

"(1) a certified professional employer organization entering into a service contract with a customer with respect to a work site employee shall be treated as a successor employer and the customer shall be treated as a predecessor employer during the term of such service contract, and

"(2) a customer whose service contract with a certified professional employer organization is terminated with respect to a work site employee shall be treated as a successor employer and the certified professional employer organization shall be treated as a predecessor employer.

 

"(1) a certified professional employer organization shall be treated as the employer of any individual (other than a work site employee or a person described in subsection (f)) who is performing services covered by a contract meeting the requirements of section 7705(e)(2), but only with respect to remuneration remitted by such organization to such individual, and

"(2) the exemptions, exclusions, definitions, and other rules which are based on type of employer and which would (but for paragraph (1)) apply shall apply with respect to such taxes imposed on such remuneration.

 

"(1) IN GENERAL. -- For purposes of any credit specified in paragraph (2) --

 

"(2) CREDITS SPECIFIED. -- A credit is specified in this paragraph if such credit is allowed under --

 

"(1) notification of the Secretary in such manner as the Secretary shall prescribe in the case of the commencement or termination of a service contract described in section 7705(e)(2) between such a person and a customer, and the employer identification number of such customer,

"(2) such information as the Secretary determines necessary for the customer to claim the credits identified in subsection (d) and the manner in which such information is to be provided, as prescribed by the Secretary, and

"(3) such other information as the Secretary determines is essential to promote compliance with respect to the credits identified in subsection (d) and section 3302, and

 

"(1) demonstrates that such person (and any owner, officer, and other persons as may be specified in regulations) meets such requirements as the Secretary shall establish, including requirements with respect to tax status, background, experience, business location, and annual financial audits,

"(2) agrees that it will satisfy the bond and independent financial review requirements of subsection (c) on an ongoing basis,

"(3) agrees that it will satisfy such reporting obligations as may be imposed by the Secretary,

"(4) computes its taxable income using an accrual method of accounting unless the Secretary approves another method,

"(5) agrees to verify on such periodic basis as the Secretary may prescribe that it continues to meet the requirements of this subsection, and

"(6) agrees to notify the Secretary in writing within such time as the Secretary may prescribe of any change that materially affects the continuing accuracy of any agreement or information that was previously made or provided under this subsection.

 

"(1) IN GENERAL. -- An organization meets the requirements of this paragraph if such organization --

 

"(2) BOND. -- "(3) INDEPENDENT FINANCIAL REVIEW REQUIREMENTS. -- A certified professional employer organization meets the requirements of this paragraph if such organization --

 

Such assertion shall state that the organization has withheld and made deposits of all taxes imposed by chapters 21, 22, and 24 in accordance with regulations imposed by the Secretary for such calendar quarter and such examination level attestation shall state that such assertion is fairly stated, in all material respects.

"(4) CONTROLLED GROUP RULES. -- For purposes of the requirements of paragraphs (2) and (3), all certified professional employer organizations that are members of a controlled group within the meaning of sections 414(b) and (c) shall be treated as a single organization.

"(5) FAILURE TO FILE ASSERTION AND ATTESTATION. -- If the certified professional employer organization fails to file the assertion and attestation required by paragraph (3) with respect to any calendar quarter, then the requirements of paragraph (3) with respect to such failure shall be treated as not satisfied for the period beginning on the due date for such attestation.

"(6) AUDIT DATE. -- For purposes of paragraph (3)(A), the audit date shall be six months after the completion of the organization's fiscal year.

 

"(1) IN GENERAL. -- The term 'work site employee' means, with respect to a certified professional employer organization, an individual who --

 

"(2) SERVICE CONTRACT REQUIREMENTS. -- A contract meets the requirements of this paragraph with respect to an individual performing services for a customer if such contract is in writing and provides that the certified professional employer organization shall --

 

"(3) WORK SITE COVERAGE REQUIREMENT. -- The requirements of this paragraph are met with respect to an individual if at least 85 percent of the individuals performing services for the customer at the work site where such individual performs services are subject to 1 or more contracts with the certified professional employer organization which meet the requirements of paragraph (2) (but not taking into account those individuals who are excluded employees within the meaning of section 414(q)(5)).

 

"(1) each person certified as a professional employer organization under subsection (a), and

"(2) each person whose certification as a professional employer organization is suspended or revoked under subsection (d).

 

(1) Section 3302 is amended by adding at the end the following new subsection:

 

(2) Section 3303(a) is amended --

 

"(4) if the taxpayer is a certified professional employer organization (as defined in section 7705) that is treated as the employer under section 3511, such certified professional employer organization is permitted to collect and remit, in accordance with paragraphs (1), (2), and (3), contributions during the taxable year to the State unemployment fund with respect to a work site employee.", and (3) Section 6053(c) is amended by adding at the end the following new paragraph:

"(8) CERTIFIED PROFESSIONAL EMPLOYER ORGANIZATIONS. -- For purposes of any report required by this subsection, in the case of a certified professional employer organization that is treated under section 3511 as the employer of a work site employee, the customer with respect to whom a work site employee performs services shall be the employer for purposes of reporting under this section and the certified professional employer organization shall furnish to the customer and the Secretary any information the Secretary prescribes as necessary to complete such reporting no later than such time as the Secretary shall prescribe.".

(4) Section 6652 is amended by adding at the end the following new subsection:

 

(1) The table of sections for chapter 25 is amended by adding at the end the following new item:

 

(1) IN GENERAL. -- The amendments made by this section shall apply with respect to wages for services performed on or after January 1 of the first calendar year beginning more than 12 months after the date of the enactment of this Act.

(2) CERTIFICATION PROGRAM. -- The Secretary of the Treasury shall establish the certification program described in section 7705(b) of the Internal Revenue Code of 1986, as added by subsection (b), not later than 6 months before the effective date determined under paragraph (1).

 

(1) for Federal tax purposes (other than the purposes set forth in the amendments made by this section), or

(2) for purposes of any other provision of law.

 

(1) by redesignating subparagraphs (C) and (D) as subparagraphs (D) and (E), respectively, and

(2) by inserting after subparagraph (B) the following:

"(1) IN GENERAL. -- In the case of any return required to be filed in a calendar year beginning after 2014, the $135 dollar amount under subsection (a) shall be increased by such dollar amount multiplied by the cost-of-living adjustment determined under section 1(f)(3) determined by substituting 'calendar year 2013' for 'calendar year 1992' in sub-paragraph (B) thereof.

"(2) ROUNDING. -- If any amount adjusted under paragraph (1) is not a multiple of $5, such amount shall be rounded to the next lowest multiple of $5.".

 

(1) IN GENERAL. -- Section 6652(c) is amended by adding at the end the following new paragraph:

"(6) ADJUSTMENT FOR INFLATION. --

(2) CONFORMING AMENDMENTS. --

 

"(1) IN GENERAL. -- In the case of any failure relating to a return or claim for refund filed in a calendar year beginning after 2014, each of the dollar amounts under subsections (a), (b), (c), (d), (e), (f), and (g) shall be increased by such dollar amount multiplied by the cost-of-living adjustment determined under section 1(f)(3) determined by substituting 'calendar year 2013' for 'calendar year 1992' in subparagraph (B) thereof.

"(2) ROUNDING. -- If any amount adjusted under subparagraph (A) --

 

"(1) IN GENERAL. -- In the case of any return required to be filed in a calendar year beginning after 2014, the $195 dollar amount under subsection (b)(1) shall be increased by such dollar amount multiplied by the cost-of-living adjustment determined under section 1(f)(3) determined by substituting 'calendar year 2013' for 'calendar year 1992' in subparagraph (B) thereof.

"(2) ROUNDING. -- If any amount adjusted under paragraph (1) is not a multiple of $5, such amount shall be rounded to the next lowest multiple of $5.".

 

"(1) IN GENERAL. -- In the case of any return required to be filed in a calendar year beginning after 2014, the $195 dollar amount under subsection (b)(1) shall be increased by such dollar amount multiplied by the cost-of-living adjustment determined under section 1(f)(3) determined by substituting 'calendar year 2013' for 'calendar year 1992' in sub-paragraph (B) thereof.

"(2) ROUNDING. -- If any amount adjusted under paragraph (1) is not a multiple of $5, such amount shall be rounded to the next lowest multiple of $5.".