[United States Senate Manual, 106th Congress]
[S. Doc. 106-1]
[USCODETITLE]
[Pages 743-762]
[From the U.S. Government Publishing Office, www.gpo.gov]
[[Page 743]]
TITLE 26.--INTERNAL REVENUE CODE
SUBTITLE A.--INCOME TAXES
Chapter 1.--NORMAL TAXES AND SURTAXES
* * * * * * *
Subchapter B.--Computation of Taxable Income
* * * * * * *
Part II.--ITEMS SPECIFICALLY INCLUDED IN GROSS INCOME
* * * * * * *
473
473 Sec. 84. Transfer of appreciated property to political
organization.
473.1
473.1 (a) General rule.
If--
(1) any person transfers property to a
political organization, and
(2) the fair market value of such property
exceeds its adjusted basis,
then for purposes of this chapter the transferor shall be
treated as having sold such property to the political
organization on the date of the transfer, and the transferor
shall be treated as having realized an amount equal to the
fair market value of such property on such date.
473.2
473.2 (b) Basis of property.
In the case of a transfer of property to a political
organization to which subsection (a) applies, the basis of
such property in the hands of the political organization
shall be the same as it would be in the hands of the
transferor, increased by the amount of gain recognized to
the transferor by reason of such transfer.
473.3
473.3 (c) Political organization defined.
For purposes of this section, the term ``political
organization'' has the meaning given to such term by section
527(e)(1). (Jan. 3, 1975, Pub. L. 93-625, Sec. 13(a), 88
Stat. 2120.)
* * * * * * *
Part VI.--ITEMIZED DEDUCTIONS FOR INDIVIDUALS AND
CORPORATIONS
* * * * * * *
474
474 Sec. 162. Trade or business expenses.
474.1
474.1 (a) In general.
There shall be allowed as a deduction all the ordinary
and necessary expenses paid or incurred during the taxable
year in carrying on any trade or business, including--
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(1) a reasonable allowance for salaries or
other compensation for personal services
actually rendered;
(2) traveling expenses (including amounts
expended for meals and lodging other than
amounts which are lavish or extravagant under
the circumstances) while away from home in the
pursuit of a trade or business; and
(3) rentals or other payments required to be
made as a condition to the continued use or
possession, for purposes of the trade or
business, of property to which the taxpayer has
not taken or is not taking title or in which he
has no equity.
For purposes of the preceding sentence, the place of
residence of a Member of Congress (including any Delegate
and Resident Commissioner) within the State, congressional
district, or possession which he represents in Congress
shall be considered his home, but amounts expended by such
Members within each taxable year for living expenses shall
not be deductible for income tax purposes in excess of
$3,000. For purposes of paragraph (2), the taxpayer shall
not be treated as being temporarily away from home during
any period of employment if such period exceeds 1 year. The
preceding sentence shall not apply to any Federal employee
during any period for which such employee is certified by
the Attorney General (or the designee thereof) as traveling
on behalf of the United States in temporary duty status to
investigate or prosecute, or provide support services for
the investigation or prosecution of, a Federal crime. (Aug.
16, 1954, ch. 736, 68A Stat. 45; Oct. 16, 1962, Pub. L. 87-
834, Sec. 4(b), 76 Stat. 960, 976; Oct. 4, 1976, Pub. L. 94-
455, Sec. 1901(c) (4), 90 Stat. 1803; Oct. 1, 1981, Pub. L.
97-51, Sec. 139(b)(1), 95 Stat. 967; July 18, 1982, Pub. L.
97-216, Sec. 215(a), 96 Stat. 194; Oct. 24, 1992, Pub. L.
102-486, Sec. 1938(a), 106 Stat. 3033; Aug. 5, 1997, Pub. L.
105-34, Sec. 1204(a), 111 Stat. 995; July 22, 1998, Pub. L.
105-206, Sec. 6012(a), 112 Stat. 818.)
* * * * * * *
Subchapter F.--Exempt Organizations
* * * * * * *
Part VI.--POLITICAL ORGANIZATIONS
474.5
474.5 Sec. 527. Political organizations.
474.6
474.6 (a) General rule.
A political organization shall be subject to taxation
under this subtitle only to the extent provided in this
section. A political organization shall be considered an
organization exempt from income taxes for the purpose of any
law which refers to organizations exempt from income taxes.
474.7
474.7 (b) Tax imposed.
(1) In general.--A tax is hereby imposed for each
taxable year on the political organization taxable income of
every political organization. Such tax shall be computed by
multiplying the political organization taxable income by the
highest rate of tax specified in section 11(b).
(2) Alternative tax in case of capital gains.--If for
any taxable year any political organization has a net
capital gain, then, in lieu of the tax imposed by paragraph
(1), there is hereby imposed a tax (if such
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a tax is less than the tax imposed by paragraph (1)) which
shall consist of the sum of--
(A) a partial tax, computed as provided by
paragraph (1), on the political organization
taxable income determined by reducing such
income by the amount of such gain, and
(B) an amount determined as provided in
section 1201(a) on such gain.
474.8
474.8 (c) Political organization taxable income defined.
(1) Taxable income defined.--For purposes of this
section, the political organization taxable income of any
organization for any taxable year is an amount equal to the
excess (if any) of--
(A) the gross income for the taxable year
(excluding any exempt function income), over
(B) the deductions allowed by this chapter
which are directly connected with the production
of the gross income (excluding exempt function
income), computed with the modifications
provided in paragraph (2).
(2) Modifications.--For purposes of this subsection--
(A) there shall be allowed a specific
deduction of $100,
(B) no net operating loss deduction shall be
allowed under section 172, and
(C) no deduction shall be allowed under part
VIII of subchapter B (relating to special
deductions for corporations).
(3) Exempt function income.--For purposes of this
subsection, the term ``exempt function income'' means any
amount received as--
(A) a contribution of money or other
property,
(B) membership dues, a membership fee or
assessment from a member of the political
organization,
(C) proceeds from a political fundraising or
entertainment event, or proceeds from the sale
of political campaign materials, which are not
received in the ordinary course of any trade or
business, or
(D) proceeds from the conducting of any
bingo game (as defined in section 513(f)(2)),
to the extent such amount is segregated for use only for the
exempt function of the political organization.
474.9
474.9 (d) Certain uses not treated as income to candidate.
For purposes of this title, if any political
organization--
(1) contributes any amount to or for the use
of any political organization which is treated
as exempt from tax under subsection (a) of this
section,
(2) contributes any amount to or for the use
of any organization described in paragraph (1)
or (2) of section 509(a) which is exempt from
tax under section 501(a), or
(3) deposits any amount in the general fund
of the Treasury or in the general funds of any
State or local government,
such amount shall be treated as an amount not diverted for
the personal use of the candidate or any other person. No
deduction shall be allowed under this title for the
contribution or deposit of any amount described in the
preceding sentence.
[[Page 746]]
474.10
474.10 (e) Other definitions.
For purposes of this section--
(1) Political organization.--The term
``political organization'' means a party,
committee, association, fund, or other
organization (whether or not incorporated)
organized and operated primarily for the purpose
of directly or indirectly accepting
contributions or making expenditures, or both,
for an exempt function.
(2) Exempt function.--The term ``exempt
function'' means the function of influencing or
attempting to influence the selection,
nomination, election, or appointment of any
individual to any Federal, State, or local
public office or office in a political
organization, or the election of Presidential or
Vice-Presidential electors, whether or not such
individual or electors are selected, nominated,
elected, or appointed. Such term includes the
making of expenditures relating to an office
described in the preceding sentence which, if
incurred by the individual, would be allowable
as a deduction under section 162(a).
(3) Contributions.--The term
``contributions'' has the meaning given to such
term by section 271(b)(2).
(4) Expenditures.--The term ``expenditures''
has the meaning given to such term by section
271(b)(3).
* * * * * * *
474.11
474.11 (g) Treatment of newsletter funds.
(1) In general.--For purposes of this section, a fund
established and maintained by an individual who holds, has
been elected to, or is a candidate (within the meaning of
paragraph (3)) for nomination or election to, any Federal,
State, or local elective public office for use by such
individual exclusively for the preparation and circulation
of such individual's newsletter shall, except as provided in
paragraph (2), be treated as if such fund constituted a
political organization.
(2) Additional modifications.--In the case of any fund
described in paragraph (1)--
(A) the exempt function shall be only the
preparation and circulation of the newsletter,
and
(B) the specific deduction provided by
subsection (c)(2)(A) shall not be allowed.
(3) Candidate.--For purposes of paragraph (1), the term
``candidate'' means, with respect to any Federal, State, or
local elective public office, an individual who--
(A) publicly announces that he is a
candidate for nomination or election to such
office, and
(B) meets the qualifications prescribed by
law to hold such office.
474.12
474.12 (h) Special rule for principal campaign committees.
(1) In general.--In the case of a political organization
which is a principal campaign committee, paragraph (1) of
subsection (b) shall be applied by substituting ``the
appropriate rates'' for ``the highest rate''.
(2) Principal campaign committee defined.--
(A) In general.--For purposes of this
subsection, the term ``principal campaign
committee'' means the political committee
designated by a candidate for Congress as his
principal campaign committee for purposes of--
[[Page 747]]
(i) section 302(e) of the Federal
Election Campaign Act of 1971 (2 U.S.C.
432(e)), and
(ii) this subsection.
(B) Designation.--A candidate may have only
1 designation in effect under subparagraph
(A)(ii) at any time and such designation--
(i) shall be made at such time and in
such manner as the Secretary may prescribe
by regulations, and
(ii) once made, may be revoked only with
the consent of the Secretary.
Nothing in this subsection shall be
construed to require any designation where there
is only one political committee with respect to
a candidate. (Jan. 3, 1975, Pub. L. 93-625,
Sec. 10(a), 88 Stat. 2116; Oct. 4, 1976, Pub. L.
94-455, Sec. 1901(b)(33)(c), 90 Stat. 1801; Oct.
21, 1978, Pub. L. 95-502, Sec. 302(a), 92 Stat.
1702; Nov. 6, 1978, Pub. L. 95-600,
Sec. 301(b)(6), 92 Stat. 2821; Aug. 13, 1981,
Pub. L. 97-34, Sec. 128, 95 Stat. 203; July 18,
1984, Pub. L. 98-369, Secs. 474(r)(16), 722(c),
98 Stat. 843, 973; Oct. 22, 1986, Pub. L. 99-
514, Sec. 112(b)(1), 100 Stat. 2085; Nov. 10,
1988, Pub. L. 100-647, Sec. 1001(b)(3)(B), 102
Stat. 3349.)
* * * * * * *
Subchapter N.--Tax Based on Income From Sources Within or
Without the United States
* * * * * * *
Part II.--NONRESIDENT ALIENS AND FOREIGN CORPORATIONS
* * * * * * *
Subpart D.--Miscellaneous Provisions
* * * * * * *
474.13
474.13 Sec. 896. Adjustment of tax on nationals, residents, and
corporations of certain foreign countries.
* * * * * * *
474.14
474.14 (d) Notification of Congress required.
No proclamation shall be issued by the President
pursuant to this section unless, at lest 30 days prior to
such proclamation, he has notified the Senate and the House
of Representatives of his intention to issue such
proclamation. (Nov. 13, 1966, Pub. L. 89-809, Sec. 105(b),
80 Stat. 1563.)
[[Page 748]]
Subchapter P.--Capital Gains and Losses
* * * * * * *
Part III.--GENERAL RULES FOR DETERMINING CAPITAL GAINS AND
LOSSES
474.15
474.15 Sec. 1221. Capital asset defined.
(a) In general.--For purposes of this subtitle, the term
``capital asset'' means property held by the taxpayer
(whether or not connected with his trade or business), but
does not include--
* * * * * * *
(5) a publication of the United States Government
(including the Congressional Record) which is received from
the United States Government or any agency thereof, other
than by purchase at the price at which it is offered for
sale to the public, and which is held by--
(A) a taxpayer who so received such
publication, or
(B) a taxpayer in whose hands the basis of
such publication is determined, for purposes of
determining gain from a sale or exchange, in
whole or in part by reference to the basis of
such publication in the hands of a taxpayer
described in subparagraph (A). (Aug. 16, 1954,
ch. 736. 68A Stat. 321; Oct. 4, 1976, Pub. L.
94-455, Sec. 2132 (a), 90 Stat. 1925; Aug. 13,
1981, Pub. L. 97-34, Sec. 505 (a), 95 Stat 331;
Dec. 17, 1999, Pub. L. 106-170, Sec. 532(a), 113
Stat. 1928.
* * * * * * *
SUBTITLE F.--PROCEDURE AND ADMINISTRATION
Chapter 61.--INFORMATION AND RETURNS
* * * * * * *
Subchapter B.--Miscellaneous Provisions
* * * * * * *
475
475 Sec. 6103. Confidentiality and disclosure of returns and
return information.
* * * * * * *
475.1
475.1 (f) Disclosure to committees of Congress.
(1) Committee on Ways and Means, Committee on Finance,
and Joint Committee on Taxation.--Upon written request from
the chairman of the Committee on Ways and Means of the House
of Representatives, the chairman of the Committee on Finance
of the Senate, or the chairman of the Joint Committee on
Taxation, the Secretary shall furnish such committee with
any return or return information specified in such request,
except that any return or return information which can be
associated with, or otherwise identify, directly or
indirectly, a particular taxpayer shall be furnished to such
committee only when sitting in closed executive session
unless such taxpayer otherwise consents in writing to such
disclosure.
(2) Chief of Staff of Joint Committee on Taxation.--Upon
written request by the Chief of Staff of the Joint Committee
on Taxation, the Secretary shall furnish him with any return
or return information speci
[[Page 749]]
fied in such request. Such Chief of Staff may submit such
return or return information to any committee described in
paragraph (1), except that any return or return information
which can be associated with, or otherwise identify,
directly or indirectly, a particular taxpayer shall be
furnished to such committee only when sitting in closed
executive session unless such taxpayer otherwise consents in
writing to such disclosure.
(3) Other committees.--Pursuant to an action by, and
upon written request by the chairman of, a committee of the
Senate or the House of Representatives (other than a
committee specified in paragraph (1)) specially authorized
to inspect any return or return information by a resolution
of the Senate or the House of Representatives or, in the
case of a joint committee (other than the joint committee
specified in paragraph (1)) by concurrent resolution, the
Secretary shall furnish such committee, or a duly authorized
and designated subcommittee thereof, sitting in closed
executive session, with any return or return information
which such resolution authorizes the committee or
subcommittee to inspect. Any resolution described in this
paragraph shall specify the purpose for which the return or
return information is to be furnished and that such
information cannot reasonably be obtained from any other
source.
(4) Agents of committees and submission of information
to Senate or House of Representatives.--
(A) Committees described in paragraph (1).--
Any committee described in paragraph (1) or the
Chief of Staff of the Joint Committee on
Taxation shall have the authority, acting
directly, or by or through such examiners or
agents as the chairman of such committee or such
chief of staff may designate or appoint, to
inspect returns and return information at such
time and in such manner as may be determined by
such chairman or chief of staff. Any return or
return information obtained by or on behalf of
such committee pursuant to the provisions of
this subsection may be submitted by the
committee to the Senate or the House of
Representatives, or to both. The Joint Committee
on Taxation may also submit such return or
return information to any other committee
described in paragraph (1), except that any
return or return information which can be
associated with, or otherwise identify, directly
or indirectly, a particular taxpayer shall be
furnished to such committee only when sitting in
closed executive session unless such taxpayer
otherwise consents in writing to such
disclosure.
(B) Other committees.--Any committee or
subcommittee described in paragraph (3) shall
have the right, acting directly, or by or
through no more than four examiners or agents,
designated or appointed in writing in equal
numbers by the chairman and ranking minority
member of such committee or subcommittee, to
inspect returns and return information at such
time and in such manner as may be determined by
such chairman and ranking minority member. Any
return or return information obtained by or on
behalf of such committee or subcommittee
pursuant to the provisions of this subsection
may be submitted by the committee to the Senate
or the House of Representatives, or to both,
except that any return or return information
which can be associated with, or otherwise
identify, directly or indirectly, a particular
taxpayer, shall be fur
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nished to the Senate or the House of
Representatives only when sitting in closed
executive session unless such taxpayer otherwise
consents in writing to such disclosure.
(5) Disclosure by whistleblower.--Any person who
otherwise has or had access to any return or return
information under this section may disclose such return or
return information to a committee referred to in paragraph
(1) or any individual authorized to receive or inspect
information under paragraph (4)(A) if such person believes
such return or return information may relate to possible
misconduct, maladministration, or taxpayer abuse.
475.2
475.2 (g) Disclosure to President and certain other persons.
* * * * * * *
475.3
475.3 (5) Reporting requirements.--
Within 30 days after the close of each calendar quarter,
the President and the head of any agency requesting returns
and return information under this subsection shall each file
a report with the Joint Committee on Taxation setting forth
the taxpayers with respect to whom such requests were made
during such quarter under this subsection, the returns or
return information involved, and the reasons for such
requests. The President shall not be required to report on
any request for returns and return information pertaining to
an individual who was an officer or employee of the
executive branch of the Federal Government at the time such
request was made. Reports filed pursuant to this paragraph
shall not be disclosed unless the Joint Committee on
Taxation determines that disclosure thereof (including
identifying details) would be in the national interest. Such
reports shall be maintained by the Joint Committee on
Taxation for a period not exceeding 2 years unless, within
such period, the Joint Committee on Taxation determines that
a disclosure to the Congress is necessary. (Pub. L. 105-65,
Title V, (Sec. 542(b), 111 Stat. 1412; July 22, 1998, Pub.
L. 105-206, Title I, Sec. 1101(b), Title III, Secs. 3702(a),
(b), 3708(a), 3711(b), Title VI, Secs. 6007(f)(4), 6009(d),
6012(b)(2), (4), 6019(c), 6023(22), 112 Stat. 696, 776, 777,
778, 781, 810, 812, 819, 823, 826; Oct. 21, 1998, Pub. L.
105-277, Div. J, Title I, Sec. 1006, Title IV,
Secs. 4002(a), (h), 4006(a), 112 Stat. 2681-900, 2681-906,
2681-907, 2681-912; Dec. 17, 1999, Pub. L. 106-170, Title V,
Sec. 521(a)(1), 113 Stat. 1925.)
* * * * * * *
475.5
475.5 Sec. 6104. Publicity of information required from certain
exempt organizations and certain trusts.
475.6
475.6 (a) Inspection of applications for tax exemption.
(1) Public inspection.--
(A) Organizations described in section
501.--If an organization described in section
501 (c) or (d) is exempt from taxation under
section 501(a) for any taxable year, the
application filed by the organization with
respect to which the Secretary made his
determination that such organization was
entitled to exemption under section 501(a),
together with any papers submitted in support of
such application, and any letter or other
document issued by the Internal Revenue Service
with respect to such application shall be open
to public inspection at the national office of
the Internal Revenue Service. In the case of any
application filed after the date
[[Page 751]]
of the enactment of this subparagraph, a copy of
such application and such letter or document
shall be open to public inspection at the
appropriate field office of the Internal Revenue
Service (determined under regulations prescribed
by the Secretary). Any inspection under this
subparagraph may be made at such times, and in
such manner, as the Secretary shall by
regulations prescribe. After the application of
any organization has been opened to public
inspection under this subparagraph, the
Secretary shall, on the request of any person
with respect to such organization, furnish a
statement indicating the subsection and
paragraph of section 501 which it has been
determined describes such organization.
(B) Pension, etc., plans.--The following
shall be open to public inspection at such times
and in such places as the Secretary may
prescribe:
(i) any application filed with respect
to the qualification of a pension, profit-
sharing, or stock bonus plan under section
401(a) or 403(a), an individual retirement
account described in section 408(a), or an
individual retirement annuity described in
section 408(b),
(ii) any application filed with respect
to the exemption from tax under section
501(a) of an organization forming part of a
plan or account referred to in clause (i),
(iii) any papers submitted in support of
an application referred to in clause (i) or
(ii), and
(iv) any letter or other document issued
by the Internal Revenue Service and dealing
with the qualification referred to in clause
(i) or the exemption from tax referred to in
clause (ii).
Except in the case of a plan participant, this subparagraph
shall not apply to any plan referred to in clause (i) having
not more than 25 participants.
(C) Certain names and compensation not to be
open to public inspection.--In the case of any
application, document, or other papers, referred
to in subparagraph (B), information from which
the compensation (including deferred
compensation) of any individual may be
ascertained shall not be opened to public
inspection under subparagraph (B).
(D) Withholding of certain other
information.--Upon request of the organization
submitting any supporting papers described in
subparagraph (A) or (B), the Secretary shall
withhold from public inspection any information
contained therein which he determines relates to
any trade secret, patent, process, style of
work, or apparatus, of the organization, if he
determines that public disclosure of such
information would adversely affect the
organization. The Secretary shall withhold from
public inspection any information contained in
supporting papers described in subparagraph (A)
or (B) the public disclosure of which he
determines would adversely affect the national
defense.
(2) Inspection by committee of Congress.--Section
6103(f) shall apply with respect to--
(A) the application for exemption of any
organization described in section 501(c) or (d)
which is exempt from taxation under section
501(a) for any taxable year, and any application
referred to in subparagraph (B) of subsection
(a)(1) of this section, and
[[Page 752]]
(B) any other papers which are in the
possession of the Secretary and which relate to
such application,
as if such papers constituted returns. (Sept. 2, 1958, Pub.
L. 85-866, Sec. 75(a) 72 Stat. 1660; Sept. 2, 1974, Pub. L.
93-406, Sec. 1022(g)(1), (2), 88 Stat. 940; Oct. 4, 1976,
Pub. L. 94-455, Secs. 1201(d), 1906(b)(13)(A), 90 Stat.
1667, 1834; Nov. 6, 1978, Pub. L. 95-600, Sec. 703(m), 92
Stat. 2943; July 18, 1984, Pub. L. 98-369 Sec. 491(d)(49),
98 Stat. 852.)
* * * * * * *
Chapter 78.--DISCOVERY OF LIABILITY AND ENFORCEMENT OF TITLE
* * * * * * *
Subchapter A.--Examination and Inspection
* * * * * * *
475.6-1
475.6-1 Sec. 7608. Authority of internal revenue enforcement
officers.
* * * * * * *
475.6-2
475.6-2 (c) Rules relating to undercover operations.
* * * * * * *
(4) Audits.--
(A) The Service shall conduct a detailed financial audit
of each undercover investigative operation which is closed
in each fiscal year; and
(i) submit the results of the audit in
writing to the Secretary; and
(ii) not later than 180 days after such
undercover operation is closed, submit a report
to the Congress concerning such audit.
(B) The Service shall also submit a report annually to
the Congress specifying as to its undercover investigative
operations--
(i) the number, by programs, of undercover
investigative operations pending as of the end
of the 1-year period for which such report is
submitted;
(ii) the number, by programs, of undercover
investigative operations commenced in the 1-year
period for which such report is submitted;
(iii) the number, by programs, of undercover
investigative operations closed in the 1-year
period for which such report is submitted; and
(iv) the following information with respect
to each undercover investigative operation
pending as of the end of the 1-year period for
which such report is submitted or closed during
such 1-year period--
(I) the date the operation began and the
date of the certification referred to in the
last sentence of paragraph (1),
(II) the total expenditures under the
operation and the amount and use of the
proceeds from the operation,
(III) a detailed description of the
operation including the potential violation
being investigated and whether the operation
is being conducted under grand jury
auspices, and
(IV) the results of the operation
including the results of criminal
proceedings.
[[Page 753]]
(Nov. 18, 1988, Pub. L. 100-690, Sec. 7601(c)(2), 102 Stat.
4504; July 30, 1996, Pub. L. 104-168, Sec. 1205(c)(1), 110
Stat. 1471.)
* * * * * * *
Chapter 79.--DEFINITIONS
475.7
475.7 Sec. 7701. Definitions.
* * * * * * *
475.8
475.8 (j) Tax treatment of Federal Thrift Savings Fund.
(1) In general.--For purposes of this title--
(A) the Thrift Savings Fund shall be treated
as a trust described in section 401(a) which is
exempt from taxation under section 501(a);
(B) any contribution to, or distribution
from, the Thrift Savings Fund shall be treated
in the same manner as contributions to or
distributions from such a trust; and
(C) subject to section 401(k)(4)(B) and any
dollar limitation on the application of section
402(e)(3), contributions to the Thrift Savings
Fund shall not be treated as distributed or made
available to an employee or Member nor as a
contribution made to the Fund by an employee or
Member merely because the employee or Member
has, under the provisions of subchapter III of
chapter 84 of title 5, United States Code, and
section 8351 of such title 5, an election
whether the contribution will be made to the
Thrift Savings Fund or received by the employee
or Member in cash.
(2) Nondiscrimination requirements.--Notwithstanding any
other provision of the law, the Thrift Savings Fund is not
subject to the nondiscrimination requirements applicable to
arrangements described in section 401(k) or to matching
contributions (as described in section 401(m)), so long as
it meets the requirements of this section.
(3) Coordination with Social Security Act.--Paragraph
(1) shall not be construed to provide that any amount of the
employee's or Member's basic pay which is contributed to the
Thrift Savings Fund shall not be included in the term
``wages'' for the purposes of section 209 of the Social
Security Act or section 3121(a) of this title.
(4) Definitions.--For purposes of this subsection, the
terms ``Member'', ``employee'', and ``Thrift Savings Fund''
shall have the same respective meanings as when used in
subchapter III of chapter 84 of title 5, United States Code.
(5) Coordination with other provisions of law.--No
provision of law not contained in this title shall apply for
purposes of determining the treatment under this title of
the Thrift Savings Fund or any contribution to, or
distribution from, such Fund. (Oct. 22, 1986, Pub. L. 99-
514, Sec. 1147(a), 100 Stat. 2493; Dec. 22, 1987, Pub. L.
100-202, Sec. 624(a), 101 Stat. 1329-429; Nov. 10, 1988,
Pub. L. 100-647, Sec. 1011A(m)(1), 102 Stat. 3483; Nov. 5,
1990, Pub. L. 101-508, Sec. 11704(a)(34), 104 Stat. 1388-
519; July 3, 1992, Pub. L. 102-318, Sec. 521(b)(43), 106
Stat. 313.)
* * * * * * *
475.9
475.9 (k) Treatment of certain amounts paid to charity.
In the case of any payment which, except for section
501(b) of the Ethics in Government Act of 1978, might be
made to any officer or employee of the Federal Government
but which is made instead on
[[Page 754]]
behalf of such officer or employee to an organization
described in section 170(c)--
(1) such payment shall not be treated as
received by such officer or employee for all
purposes of this title and for all purposes of
any tax law of a State or political subdivision
thereof, and
(2) no deduction shall be allowed under any
provision of this title (or of any law of a
State or political subdivision thereof) to such
officer or employee by reason of having such
payment made to such organization.
For purposes of this subsection, a Senator, a Representative
in, or a Delegate or Resident Commissioner to, the Congress
shall be treated as an officer or employee of the Federal
Government. (Nov. 30, 1989, Pub. L. 101-194, Sec. 602, 103
Stat. 1762; Aug. 14, 1991, Pub. L. 102-90, Sec. 314(e), 103
Stat. 469-470.)
* * * * * * *
Chapter 80.--GENERAL RULES
* * * * * * *
Subchapter A.--Application of Internal Revenue Laws
* * * * * * *
475.10
475.10 Sec. 7802. Internal Revenue Service Oversight Board.
* * * * * * *
475.11
475.11 (d) Specific responsibilities.
* * * * * * *
(4) Budget.--To--
(A) review and approve the budget request of
the Internal Revenue Service prepared by the
Commissioner;
(B) submit such budget request to the
Secretary of the Treasury; and
(C) ensure that the budget request supports
the annual and long-range strategic plans.
* * * * * * *
The Secretary shall submit the budget request referred to in
paragraph (4)(B) for any fiscal year to the President who
shall submit such request, without revision, to Congress
together with the President's annual budget request for the
Internal Revenue Service for such fiscal year.
* * * * * * *
475.12
475.12 (f) Administrative matters.
* * * * * * *
(3) Reports.--
(A) Annual.--The Oversight Board shall each
year report with respect to the conduct of its
responsibilities under this title to the
President, the Committees on Ways and Means,
Government Reform and Oversight, and
Appropriations of the House of Representatives
and the Committees on Finance, Governmental
Affairs, and Appropriations of the Senate.
(B) Additional report.--Upon a determination
by the Oversight Board under subsection
(c)(1)(B) that the organization and operation of
the Internal Revenue Service are not allowing it
to carry out
[[Page 755]]
its mission, the Oversight Board shall report
such determination to the Committee on Ways and
Means of the House of Representatives and the
Committee on Finance of the Senate. (July 22,
1998, Pub. L. 105-206, Sec. 1101(a), 112 Stat.
691.)
* * * * * * *
475.13
475.13 Sec. 7803. Commissioner of Internal Revenue; other
officials.
* * * * * * *
475.14
475.14 (c) Office of the Taxpayer Advocate.
* * * * * * *
(2) Functions of office.
* * * * * * *
(B) Annual reports.--
(i) Objectives.--Not later than June 30 of
each calendar year, the National Taxpayer
Advocate shall report to the Committee on Ways
and Means of the House of Representatives and
the Committee on Finance of the Senate on the
objectives of the Office of the Taxpayer
Advocate for the fiscal year beginning in such
calendar year. Any such report shall contain
full and substantive analysis, in addition to
statistical information.
(ii) Activities.--Not later than December 31
of each calendar year, the National Taxpayer
Advocate shall report to the Committee on Ways
and Means of the House of Representatives and
the Committee on Finance of the Senate on the
activities of the Office of the Taxpayer
Advocate during the fiscal year ending during
such calendar year. (July 22, 1998, Pub. L. 105-
206, Sec. 1102(a), 112 Stat. 697.)
* * * * * * *
475.15
475.15 Sec. 7805. Rules and regulations.
* * * * * * *
475.16
475.16 (b) Retroactivity of regulations.
* * * * * * *
(6) Congressional authorization.--The limitation of
paragraph (1) may be superseded by a legislative grant from
Congress authorizing the Secretary to prescribe the
effective date with respect to any regulation. (July 30,
1996, Pub. L. 104-168, Sec. 1101(a), 110 Stat. 1468.)
* * * * * * *
SUBTITLE G.--THE JOINT COMMITTEE ON TAXATION
Chapter 91.--ORGANIZATION AND MEMBERSHIP OF THE JOINT
COMMITTEE
476
476 Sec. 8001. Authorization.
There shall be a joint congressional committee known as
the Joint Committee on Taxation (hereinafter in this
subtitle referred to as the ``Joint Committee''). (Aug. 16,
1954, ch. 736, 68A Stat. 925; Oct. 4, 1976, Pub. L. 94-455,
Sec. 1907(a)(1), 90 Stat. 1835.)
[[Page 756]]
476.1
476.1 Sec. 8002. Membership.
476.2
476.2 (a) Number and selection.
The Joint Committee shall be composed of 10 members as
follows:
(1) From Committee on Finance.--Five members who are
members of the Committee on Finance of the Senate, three
from the majority and two from the minority party, to be
chosen by such Committee; and
(2) From Committee on Ways and Means.--Five members who
are members of the Committee on Ways and Means of the House
of Representatives, three from the majority and two from the
minority party, to be chosen by such Committee.
476.3
476.3 (b) Tenure of office.
(1) General limitation.--No person shall continue to
serve as a member of the Joint Committee after he has ceased
to be a member of the committee by which he was chosen,
except that--
(2) Exception.--The members chosen by the Committee on
Ways and Means who have been reelected to the House of
Representatives may continue to serve as members of the
Joint Committee notwithstanding the expiration of the
Congress.
476.4
476.4 (c) Vacancies.
A vacancy in the Joint Committee--
(1) Effect.--Shall not affect the power of
the remaining members to execute the functions
of the Joint Committee; and
(2) Manner of filling.--Shall be filled in
the same manner as the original selection,
except that--
(A) Adjournment or recess of Congress.--
In case of a vacancy during an adjournment
or recess of Congress for a period of more
than 2 weeks, the members of the Joint
Committee who are members of the Committee
entitled to fill such vacancy may designate
a member of such Committee to serve until
his successor is chosen by such Committee;
and
(B) Expiration of Congress.--In the case
of a vacancy after the expiration of a
Congress which would be filled by the
Committee on Ways and Means, the members of
such Committee who are continuing to serve
as members of the Joint Committee may
designate a person who, immediately prior to
such expiration, was a member of such
Committee and who is reelected to the House
of Representatives, to serve until his
successor is chosen by such Committee.
476.5
476.5 (d) Allowances.
The members shall serve without compensation in addition
to that received for their services as members of Congress;
but they shall be reimbursed for travel, subsistence, and
other necessary expenses incurred by them in the performance
of the duties vested in the Joint Committee, other than
expenses in connection with meetings of the Joint Committee
held in the District of Columbia during such times as the
Congress is in session. (Aug. 16, 1954, ch. 736, 68A Stat.
925.)
476.6
476.6 Sec. 8003. Election of chairman and vice chairman.
The Joint Committee shall elect a chairman and vice
chairman from among its members. (Aug. 16, 1954, ch. 736,
68A Stat. 926.)
[[Page 757]]
476.7
476.7 Sec. 8004. Appointment and compensation of staff.
Except as otherwise provided by law, the Joint Committee
shall have power to appoint and fix the compensation of the
Chief of Staff of the Joint Committee and such experts and
clerical, stenographic, and other assistants as it deems
advisable. (Aug. 16, 1954, ch. 736, 68A Stat. 926; Oct. 4,
1976, Pub. L. 94-455, Sec. 1907(a)(2), 90 Stat. 1835.)
476.8
476.8 Sec. 8005. Payment of expenses.
The expenses of the Joint Committee shall be paid one-
half from the contingent fund of the Senate and one-half
from the contingent fund of the House of Representatives,
upon vouchers signed by the chairman or the vice chairman.
(Aug. 16, 1954, ch. 736, 68A Stat. 926.)
Chapter 92.--POWERS AND DUTIES OF THE JOINT COMMITTEE
477
477 Sec. 8021. Powers.
477.1
477.1 (a) To obtain data and inspect income returns.
For powers of the Joint Committee to obtain
and inspect income returns, see section 6103(f).
477.2
477.2 (b) Relating to hearings and sessions.
The Joint Committee, or any subcommittee thereof, is
authorized--
(1) To hold.--To hold hearings and to sit
and act at such places and times;
(2) To require attendance of witnesses and
production of books.--To require by subpoena (to
be issued under the signature of the chairman or
vice chairman) or otherwise the attendance of
such witnesses and the production of such books,
papers, and documents;
(3) To administer oaths.--To administer such
oaths; and
(4) To take testimony.--To take such
testimony;
as it deems advisable.
477.3
477.3 (c) To procure printing and binding.
The Joint Committee, or any subcommittee thereof, is
authorized to have such printing and binding done as it
deems advisable.
477.4
477.4 (d) To make expenditures.
The Joint Committee, or any subcommittee thereof, is
authorized to make such expenditures as it deems advisable.
(e) Investigations.--
The Joint Committee shall review all requests (other
than requests by the chairman or ranking member of a
committee or subcommittee) for investigations of the
Internal Revenue Service by the General Accounting Office,
and approve such requests when appropriate, with a view
towards eliminating overlapping investigations, ensuring
that the General Accounting Office has the capacity to
handle the investigation, and ensuring that investigations
focus on areas of primary importance to tax administration.
[[Page 758]]
(f) Relating to Joint Reviews.
(1) In general.--The Chief of Staff, and the
staff of the Joint Committee, shall provide such
assistance as is required for joint reviews
described in paragraph (2).
(2) Joint reviews.--Before June 1 of each
calendar year after 1998 and before 2004, there
shall be a joint review of the strategic plans
and budget for the Internal Revenue Service and
such other matters as the Chairman of the Joint
Committee deems appropriate. Such joint review
shall be held at the call of the Chairman of the
Joint Committee and shall include two members of
the majority and one member of the minority from
each of the Committees on Finance,
Appropriations, and Governmental Affairs of the
Senate, and the Committees on Ways and Means,
Appropriations, and Government Reform and
Oversight of the House of Representatives.
(Aug. 16, 1954, ch. 736, 68A Stat. 927; Oct. 4, 1976, Pub.
L. 94-455, Sec. 1907(a)(3), 90 Stat. 1835; Nov. 10, 1988,
Pub. L. 100-647, Sec. 1018(s)(1), 102 Stat. 3586; July 22,
1998, Pub. L. 105-206, Sec. 4001(a), 112 Stat. 783.)
477.5
477.5 Sec. 8022. Duties.
It shall be the duty of the Joint Committee--
477.6
477.6 (1) Investigation.--
(A) Operation and effects of law.--To
investigate the operation and effects of the
Federal system of internal revenue taxes;
(B) Administration.--To investigate the
administration of such taxes by the Internal
Revenue Service or any executive department,
establishment, or agency charged with their
administration; and
(C) Other investigations.--To make such
other investigations in respect of such system
of taxes as the Joint Committee may deem
necessary.
477.7
477.7 (2) Simplification of law.--
(A) Investigation of methods.--To
investigate measures and methods for the
simplification of such taxes, particularly the
income tax; and
(B) Publication of proposals.--To publish,
from time to time, for public examination and
analysis, proposed measures and methods for the
simplification of such taxes.
477.8
477.8 (3) Reports.--
(A) To report, from time to time, to the
Committee on Finance and the Committee on Ways
and Means, and, in its discretion, to the Senate
or House of Representatives, or both, the
results of its investigations, together with
such recommendations as it may deem advisable.
(B) Subject to amounts specifically
appropriated to carry out this subparagraph, to
report, at least once each Congress, to the
Committee on Finance and the Committee on Ways
and Means on the overall state of the Federal
tax system, together with recommendations with
respect to possible simplification proposals and
other matters relating to the administration of
the Federal tax system as it may deem advisable.
(C) To report, for each calendar year after
1998 and before 2004, to the Committees on
Finance, Appropriations, and Governmental
[[Page 759]]
Affairs of the Senate, and to the Committees on
Ways and Means, Appropriations, and Government
Reform and Oversight of the House of
Representatives, with respect to--
(i) strategic and business plans for the
Internal Revenue Service;
(ii) progress of the Internal Revenue
Service in meeting its objectives;
(iii) the budget for the Internal
Revenue Service and whether it supports its
objectives;
(iv) progress of the Internal Revenue
Service in improving taxpayer service and
compliance;
(v) progress of the Internal Revenue
Service on technology modernization; and
(vi) the annual filing season.
477.9
477.9 (4) Cross reference.--
For duties of the Joint Committee relating
to refunds of income and estate taxes, see
section 6405. (Aug. 16, 1954, ch. 736, 68A Stat.
927; July 22, 1998, Pub. L. 105-206,
Sec. 4002(a), 112 Stat. 784.)
478
478 Sec. 8023. Additional powers to obtain data.
478.1
478.1 (a) Securing of data.
The Joint Committee or the Chief of Staff of the Joint
Committee, upon approval of the Chairman or Vice Chairman,
is authorized to secure directly from the Internal Revenue
Service or the office of the Chief Counsel for the Internal
Revenue Service, or directly from any executive department,
board, bureau, agency, independent establishment, or
instrumentality of the Government, information, suggestions,
rulings, data, estimates, and statistics, for the purpose of
making investigations, reports, and studies relating to
internal revenue taxation. In the investigation by the Joint
Committee on Taxation of the administration of the internal
revenue taxes by the Internal Revenue Service, the Chief of
Staff of the Joint Committee on Taxation is authorized to
secure directly from the Internal Revenue Service such tax
returns, or copies of tax returns, and other relevant
information, as the Chief of Staff deems necessary for such
investigation, and the Internal Revenue Service is
authorized and directed to furnish such tax returns and
information to the Chief of Staff together with a brief
report, with respect to each return, as to any action taken
or proposed to be taken by the Service as a result of any
audit of the return.
478.2
478.2 (b) Furnishing of data.
The Internal Revenue Service, the office of the Chief
Counsel for the Internal Revenue Service, executive
departments, boards, bureaus, agencies, independent
establishments, and instrumentalities are authorized and
directed to furnish such information, suggestions, rulings,
data, estimates, and statistics directly to the Joint
Committee or to the Chief of Staff of the Joint Committee,
upon request made pursuant to this section.
478.3
478.3 (c) Application of subsections (a) and (b).
Subsections (a) and (b) shall be applied in accordance
with their provisions without regard to any reorganization
plan becoming effective on, before, or after the date of the
enactment of this subsection. (Aug. 16, 1954, ch. 736, 68A
Stat. 928; Sept. 22, 1959, Pub. L. 86-368, Sec. 2(b),
[[Page 760]]
73 Stat. 648; Oct. 4, 1976, Pub. L. 94-455, Secs. 1210(c),
1907(a)(4), 90 Stat. 1711, 1835.)
* * * * * * *
SUBTITLE H.--FINANCING OF PRESIDENTIAL ELECTION CAMPAIGNS
Chapter 95.--PRESIDENTIAL ELECTION CAMPAIGN FUND
* * * * * * *
478.5
478.5 Sec. 9009. Reports to Congress; regulations.
478.6
478.6 (a) Reports.
The Commission shall, as soon as practicable after each
presidential election, submit a full report to the Senate
and House of Representatives setting forth--
(1) the qualified campaign expenses (shown
in such detail as the Commission determines
necessary) incurred by the candidates of each
political party and their authorized committees;
(2) the amounts certified by it under
section 9005 for payment to the eligible
candidates for each political party;
(3) the amount of payments, if any, required
from such candidates under section 9007, and the
reasons for each payment required;
(4) the expensees incurred by the national
committee of a major party or minor party with
respect to a presidential nominating convention;
(5) the amounts certified by it under
section 9008(g) for payment to each such
committee; and
(6) the amount of payments, if any, required
from such committees under section 9008(h), and
the reasons for each such payment.
Each report submitted pursuant to this section shall be
printed as a Senate document.
478.7
478.7 (b) Regulations, etc.
The Commission is authorized to prescribe such rules and
regulations in accordance with the provisions of subsection
(c), to conduct such examinations and audits (in addition to
the examinations and audits required by section 9007(a)), to
conduct such investigations, and to require the keeping and
submission of such books, records, and information, as it
deems necessary to carry out the functions and duties
imposed on it by this chapter.
478.8
478.8 (c) Review of regulations.
(1) The Commission, before prescribing any rule or
regulation under subsection (b), shall transmit a statement
with respect to such rule or regulation to the Senate and to
the House of Representatives, in accordance with the
provisions of this subsection. Such statement shall set
forth the proposed rule or regulation and shall contain a
detailed explanation and justification of such rule or
regulation.
(2) If either such House does not, through appropriate
action, disapprove the proposed rule or regulation set forth
in such statement no later than 30 legislative days after
receipt of such statement, then the Commission may prescribe
such rule or regulation. Whenever a committee of the House
of Representatives reports any resolution relating to any
such rule or regulation, it is at any time thereafter in
order
[[Page 761]]
(even though a previous motion to the same effect has been
disagreed to) to move to proceed to the consideration of the
resolution. The motion is highly privileged and is not
debatable. An amendment to the motion is not in order, and
it is not in order to move to reconsider the vote by which
the motion is agreed to or disagreed to. The Commission may
not prescribe any rule or regulation which is disapproved by
either such House under this paragraph.
(3) For purposes of this subsection, the term
``legislative days'' does not include any calendar day on
which both Houses of the Congress are not in session.
(4) For purposes of this subsection, the term ``rule or
regulation'' means a provision or series of interrelated
provisions stating a single separable rule of law. (Dec. 10,
1971, Pub. L. 92-178, Sec. 801, 85 Stat. 569; Oct. 15, 1974,
Pub. L. 93-443, Secs. 404(c)(12), (13), 406(b), 88 Stat.
1292, 1296; May 11, 1976, Pub. L. 94-283, Sec. 304(a), 90
Stat. 498.)
* * * * * * *
Chapter 96.--PRESIDENTIAL PRIMARY MATCHING PAYMENT ACCOUNT
* * * * * * *
478.10
478.10 Sec. 9039. Reports to Congress; regulations.
478.11
478.11 (a) Reports.
The Commission shall, as soon as practicable after each
matching payment period, submit a full report to the Senate
and House of Representatives setting forth--
(1) the qualified campaign expenses (shown
in such detail as the Commission determines
necessary) incurred by the candidates of each
political party and their authorized committees,
(2) the amounts certified by it under
section 9036 for payment to each eligible
candidate, and
(3) the amount of payments, if any, required
from candidates under section 9038, and the
reasons for each payment required.
Each report submitted pursuant to this section shall be
printed as a Senate document.
478.12
478.12 (b) Regulations, etc.
The Commission is authorized to prescribe rules and
regulations in accordance with the provisions of subsection
(c), to conduct examinations and audits (in addition to the
examinations and audits required by section 9038(a)), to
conduct investigations, and to require the keeping and
submission of any books, records, and information, which it
determines to be necessary to carry out its responsibilities
under this chapter.
478.13
478.13 (c) Review of regulations.
(1) The Commission, before prescribing any rule or
regulation under subsection (b), shall transmit a statement
with respect to such rule or regulation to the Senate and to
the House of Representatives, in accordance with the
provisions of this subsection. Such statement shall set
forth the proposed rule or regulation and shall contain a
detailed explanation and justification of such rule or
regulation.
(2) If either such House does not, through appropriate
action, disapprove the proposed rule or regulation set forth
in such statement
[[Page 762]]
no later than 30 legislative days after receipt of such
statement, then the Commission may prescribe such rule or
regulation. Whenever a committee of the House of
Representatives reports any resolution relating to any such
rule or regulation, it is at any time thereafter in order
(even though a previous motion to the same effect has been
disagreed to) to move to proceed to the consideration of the
resolution. The motion is highly privileged and is not
debatable. An amendment to the motion is not in order, and
it is not in order to move to reconsider the vote by which
the motion is agreed to or disagreed to. The Commission may
not prescribe any rule or regulation which is disapproved by
either such House under this paragraph.
(3) For purposes of this subsection, the term
``legislative days'' does not include any calendar day on
which both Houses of the Congress are not in session.
(4) For purposes of this subsection, the term ``rule or
regulation'' means a provision or series of interrelated
provisions stating a single separable rule of law. (Oct. 15,
1974, Pub. L. 93-443, Sec. 408(c), 88 Stat. 1301; May 11,
1976, Pub. L. 94-283, Sec. 304(b), 90 Stat. 499.)
* * * * * * *
SUBTITLE I.--TRUST FUND CODE
Chapter 98.--TRUST FUND CODE
* * * * * * *
Subchapter B.--General Provisions
* * * * * * *
478.14
478.14 Sec. 9602. Management of trust funds.
478.15
478.15 (a) Report.
It shall be the duty of the Secretary of the Treasury to
hold each Trust Fund established by subchapter A, and (after
consultation with any other trustees of the Trust Fund) to
report to the Congress each year on the financial condition
and the results of the operations of each such Trust Fund
during the preceding fiscal year and on its expected
condition and operations during the next 5 fiscal years.
Such report shall be printed as a House document of the
session of the Congress to which the report is made. (Dec.
29, 1981, Pub. L. 97-119, Sec. 103(a), 95 Stat. 1638.)