| Home > 106th Congressional Bills > H.R. 2128 (ih) To provide for the periodic review of the efficiency and public need [Introduced in House] ...
H.R. 2128 (ih) To provide for the periodic review of the efficiency and public need [Introduced in House] ...
108th CONGRESS 1st Session H. R. 2127 To amend the Internal Revenue Code of 1986 to repeal tax benefits relating to company-owned life insurance. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES May 15, 2003 Mr. Emanuel (for himself, Mr. Franks of Arizona, Mr. Green of Texas, Mr. Hinchey, Mr. Payne, Mr. Ryan of Ohio, Mr. Grijalva, Mr. Markey, Ms. DeLauro, Mr. Frost, Mr. Lantos, Ms. Kilpatrick, Mr. DeFazio, Ms. Lee, and Mr. Smith of Washington) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committees on Energy and Commerce, and Education and the Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned _______________________________________________________________________ A BILL To amend the Internal Revenue Code of 1986 to repeal tax benefits relating to company-owned life insurance. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Taxpayer Savings and Employee Notification Act of 2003''. SEC. 2. REPEAL TAX BENEFITS RELATING TO COMPANY-OWNED LIFE INSURANCE. (a) Inclusion of Life Insurance Investment Gains.--Section 72 of the Internal Revenue Code of 1986 (relating to annuities; certain proceeds of endowment and life insurance contracts) is amended by inserting after subsection (j) the following new subsection: ``(k) Treatment of Nonqualified Company-Owned Life Insurance Contracts.-- ``(1) In general.--In the case of a nonqualified company- owned life insurance contract, the income on the contract (as determined under section 7702(g)) for any taxable year shall be includible in gross income for such year. ``(2) Nonqualified company-owned life insurance contract.-- For the purposes of paragraph (1)-- ``(A) In general.--The term `nonqualified company- owned life insurance contract' means any life insurance policy or endowment contract held by any entity engaged in a trade or business. ``(B) Exceptions.--Such term shall not include-- ``(i) any policy or contract covering the life solely of individuals who are key persons (as defined in section 264(e)(3)), ``(ii) any contract which is acquired by the estate of a decedent by reason of the death of the decedent, ``(iii) any contract which is held under a plan described in section 401(a) or 403(a), under a program described in section 403(b), or under an individual retirement plan, ``(iv) any contract which is a qualified funding asset (as defined in section 130(d), but without regard to whether there is a qualified assignment), and ``(v) any contract which is purchased by an employer upon the termination of a plan described in section 401(a) or 403(a) and is held by the employer until all amounts under such contract are distributed to the employee for whom such contract was purchased or the employee's beneficiary. ``(C) Contracts held by natural persons, partnerships, and s corporations.--Rules similar to the rules of section 264(f)(5) shall apply.''. (b) Repeal of Exclusion for Death Benefits.--Section 101 of such Code (relating to certain death benefits) is amended by adding at the end the following new subsection: ``(j) Proceeds of Nonqualified Company-Owned Life Insurance.-- Notwithstanding any other provision of this section, there shall be included in gross income amounts received under a nonqualified company- owned life insurance contract (as defined in section 72(k)) to the extent that such amounts exceed the sum of-- ``(1) the income on the contract (as determined under section 7702(g)) which as been previously included in income, plus ``(2) the premiums paid (as defined in section 7702(f)(1)) under the contract. Amounts included in gross income under the preceding sentence shall be so included under section 72.''. (c) Information Reporting.--Section 6047 of such Code (relating to information relating to certain trusts and annuity plans) is amended by redesignating subsection (g) as subsection (h) and by inserting after subsection (f) the following new subsection: ``(g) Nonqualified Company-Owned Life Insurance Contracts.--The Secretary shall require the issuer of nonqualified company-owned life insurance contracts to make such returns and reports regarding such contracts (as defined in section 72(k)) to the Secretary, beneficiaries of such contracts, and such other persons as the Secretary may prescribe.''. (d) Reduction in Public Debt.--The increase in Federal receipts in the United States Treasury by reason of the amendments made by this section shall be used solely for reduction of the public debt and for such purpose the Secretary of the Treasury shall deposit an amount equal to such receipts in the account established under section 3113 of title 31, United States Code. (e) Effective Date.--The amendments made by this section shall apply to contracts entered into after the date of the enactment of this Act. SEC. 3. DISCLOSURE. (a) In General.--Not later than 60 days before the date of purchase of a nonqualified company-owned life insurance contract (as defined by section 72(k) of the Internal Revenue Code of 1986) by an entity on one or more of its employees, the entity shall provide to each such employee a written disclosure that shall contain the following information: (1) A statement that the company plans to purchase such contract on the life of the employee. (2) The identity of the insurance carrier with respect to such contract. (3) The amount of the benefit under such contract. (4) The name of the beneficiary under such contract. (b) Objection to Purchase of Contract.--If such employee notifies such entity in writing before the date of purchase of such contract that the employee objects to the purchase, then the entity shall not purchase the contract. (c) Enforcement.-- (1) Unfair or deceptive act or practice.--A violation of either subsection (a) or (b) shall be treated as a violation of a rule defining an unfair or deceptive act or practice prescribed under section 18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)). (2) Actions by the federal trade commission.--The Federal Trade Commission shall enforce this section in the same manner, by the same means, and with the same jurisdiction, powers, and duties as though all applicable terms and provisions of the Federal Trade Commission Act (15 U.S.C. 41 et seq.) were incorporated into and made a part of this Act. (d) Effective Date.--This section shall apply to contracts entered into after the date of the enactment of this Act. SEC. 4. RULE OF CONSTRUCTION. Nothing in this Act, or the amendments made by this Act, shall be construed to affect any case in controversy, or any investigation by the Secretary of the Treasury, relating to any leveraged company-owned life insurance contract entered into on or before the date of the enactment of this Act. <all>
Other Popular 106th Congressional Bills Documents:
|GovRecords.org presents information on various agencies of the United States Government. Even though all information is believed to be credible and accurate, no guarantees are made on the complete accuracy of our government records archive. Care should be taken to verify the information presented by responsible parties. Please see our reference page for congressional, presidential, and judicial branch contact information. GovRecords.org values visitor privacy. Please see the privacy page for more information.|
Supreme Court Decisions
104th Congressional Documents
105th Congressional Documents
106th Congressional Documents
107th Congressional Documents
108th Congressional Documents
1994 Presidential Documents