States that nothing in specified Internal Revenue Code provisions concerning the disallowance of the charitable deduction contribution shall be construed to permit a deduction for a transfer to or for the use of a charitable organization if the organization pays or has paid, or there is an understanding that any person will pay, personal benefit contract premiums on the transferor's behalf. Subjects such non-deductible payments to an excise tax.
[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 630 Introduced in House (IH)]
106th CONGRESS
1st Session
H. R. 630
To amend the Internal Revenue Code of 1986 to reiterate the denial of
the charitable contribution deduction for transfers associated with
split-dollar insurance arrangements.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 9, 1999
Mr. Archer (for himself and Mr. Rangel) introduced the following bill;
which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to reiterate the denial of
the charitable contribution deduction for transfers associated with
split-dollar insurance arrangements.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. CHARITABLE SPLIT-DOLLAR LIFE INSURANCE, ANNUITY, AND
ENDOWMENT CONTRACTS.
(a) In General.--Subsection (f) of section 170 of the Internal
Revenue Code of 1986 (relating to disallowance of deduction in certain
cases and special rules) is amended by adding at the end the following
new paragraph:
``(10) Split-dollar life insurance, annuity, and endowment
contracts.--
``(A) In general.--Nothing in this section or in
section 545(b)(2), 556(b)(2), 642(c), 2055, 2106(a)(2),
or 2522 shall be construed to allow a deduction, and no
deduction shall be allowed, for any transfer to or for
the use of an organization described in subsection (c)
if in connection with such transfer--
``(i) the organization directly or
indirectly pays, or has previously paid, any
premium on any personal benefit contract with
respect to the transferor, or
``(ii) there is an understanding or
expectation that any person will directly or
indirectly pay any premium on any personal
benefit contract with respect to the
transferor.
``(B) Personal benefit contract.--For purposes of
subparagraph (A), the term `personal benefit contract'
means, with respect to the transferor, any life
insurance, annuity, or endowment contract if any direct
or indirect beneficiary under such contract is the
transferor, any member of the transferor's family, or
any other person (other than an organization described
in subsection (c)) designated by the transferor.
``(C) Excise tax on premiums paid.--
``(i) In general.--There is hereby imposed
on any organization described in subsection (c)
an excise tax equal to the premiums paid by
such organization on any life insurance,
annuity, or endowment contract if the payment
of premiums on such contract is in connection
with a transfer for which a deduction is not
allowable under subparagraph (A).
``(ii) Payments by other persons.--For
purposes of clause (i), payments made by any
other person pursuant to an understanding or
expectation referred to in subparagraph (A)
shall be treated as made by the organization.
``(iii) Reporting.--Any organization on
which tax is imposed by clause (i) with respect
to any premium shall file an annual return
which includes--
``(I) the amount of such premiums
paid during the year and the name and
TIN of each beneficiary under the
contract to which the premium relates,
and
``(II) such other information as
the Secretary may require.
The penalties applicable to returns required
under section 6033 shall apply to returns
required under this clause. Returns required
under this clause shall be furnished at such
time and in such manner as the Secretary shall
by forms or regulations require.
``(D) Regulations.--The Secretary shall prescribe
such regulations as may be necessary to carry out the
purposes of this paragraph.''
(b) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendment made by this section shall apply to
transfers made after February 8, 1999.
(2) Excise tax.--Except as provided in paragraph (3) of
this subsection, section 170(f)(10)(C) of the Internal Revenue
Code of 1986 (as added by this section) shall apply to premiums
paid after the date of the enactment of this Act.
(3) Reporting.--Clause (iii) of such section 170(f)(10)(C)
shall apply to premiums paid after February 8, 1999 (determined
as if the tax imposed by such section applies to premiums paid
after such date).
<all>
Introduced in House
Introduced in House
Sponsor introductory remarks on measure. (CR E161)
Referred to the House Committee on Ways and Means.
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