,i  #aac? ,,congress  #b;d ,session  ,h4
 ,r4 #ecch  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,july #ca1 #bjad ,ms4 
,edw>ds 7= h]self1 ,mr4 ,connolly1 ,mr4 
,cumm+s1 ,ms4 ,norton1 ,ms4 ,kaptur1    
,mr4 ,lyn*1 ,mr4 ,ellison1 & ,mr4       
,rangel7 introduc$ ! foll[+ bill2 :i* 0 
ref]r$ to ! ,committee on ,ways &       
,means1 & 9 addition to ! ,committees on
 ,ov]sight & ,gov]nm5t ,re=m & ,=eign   
,affairs1 = a p]iod to be subsequ5tly   
det]m9$ by ! ,speak]1 9 ea* case =      
consid]ation ( su* provisions z fall )9 
! jurisdiction ( ! committee conc]n$  ,a
 ,,bill  ,to repeal ! revis$ annuity    
employee & fur!r revis$ annuity employee
 categories )9 ! ,f$]al ,employees      
,retirem5t ,sy/em1 & = o!r purposes4    
#a4 ,%ort title ,?is ,act may be cit$ z 
! ,f$]al ,employee ,p5sion ,fairness    
,act4  #b4 ,repeal ( ,,f]s revis$ &     
fur!r revis$ annuitant categories  7a7  
,repeal ( annuity computation ,section  
#hdae ( title #e1 ,unit$ ,/ates ,code1  
is am5d$ by /rik+ subsection 7d74  7b7  

,repeal ( annuitant categories ,section 
#hdbb7;a77#c7 ( title #e1 ,unit$ ,/ates 
,code1 is am5d$--  7#a7 by /rik+ o!r ?an
 revis$ annuity employees or fur!r      
revis$ annuity employees2 &  7#b7 by    
/rik+ subp>agraphs 7,b7 & 7,c74  7c7    
,repeal ( ,gov]nm5t contributions       
,section #hdbc7;a7 ( title #e1 ,unit$   
,/ates ,code1 is am5d$ by /rik+ p>agraph
 7#b7 & ins]t+ ! foll[+3  7#b7 ,9       
det]m9+ any normal-co/ p]c5tage to be   
appli$ "u ?is subsection1 am\nts provid$
 = "u section #hdbb %all be tak5 into   
acc\nt4  4  7d7 ,con=m+ am5dm5ts        
,section #hdja ( title #e1 ,unit$ ,/ates
 ,code1 is am5d$--  7#a7 9 p>agraph     
7#ce77;,b71 by /rik+ ! semi-colon at !  
end & ins]t+ 2 &2  7#b7 9 p>agraph      
7#cf71 by /rik+ 2 & at ! end & ins]t+ a 
p]iod2 &  7#c7 by /rik+ p>agraphs 7#cg7 
& 7#ch74  7e7 ,application  7#a7 ,9     
g5]al ,! am5dm5ts made by ?is section   
%all apply on ! fir/ day ( ! fir/ pay   
p]iod beg9n+ aft] ! date ( enactm5t (   
?is ,act4  7#b7 ,treatm5t ( =m] revis$  

or fur!r revis$ annuitants ,any         
individual :o1 z ( ! date ( enactm5t (  
?is ,act1 0 a revis$ annuity employee or
 a fur!r revis$ annuity employee 7b = ! 
am5dm5ts made by ?is section7 %all be   
deem$ to be an employee or ,memb] 7z ^? 
t]ms are def9$ 9 section #hdja ( title  
#e1 ,unit$ ,/ates ,code7 = purposes (   
*apt] #hd ( su* title4  #c4 ,repeal (   
,=eign ,s]vice revis$ or fur!r revis$   
annuity p>ticipant categories  7a7      
,repeal ( annuitant categories ,section 
#hef7;a7 ( ! ,=eign ,s]vice ,act ( #aihj
 7#bb ,u4,s4,c4 #djga;e7a77 is am5d$ by 
/rik+ p>agraph 7#b7 & ins]t+ ! foll[+3  
7#b7 ,! applicable p]c5tage = a         
p>ticipant o!r ?an a revis$ annuity     
p>ticipant or a fur!r revis$ annuity    
p>ticipant %all be z foll[s3 #g4e;,be=e 
,janu>y #a1 #aiii4 #g4ge;,janu>y #a1    
#aiii1 to ,decemb] #ca1 #aiii4          
#g4i;,janu>y #a1 #bjjj1 to ,decemb] #ca1
 #bjjj4 #g4ee;,aft] ,janu>y #aa1 #bjjc4 
4  7b7 ,gov]nm5t contribution ,section  
#heg ( ! ,=eign ,s]vice ,act ( #aihj    

7#bb ,u4,s4,c4 #djga;f7 is am5d$ by     
/rik+ subsection 7c74  7c7 ,con=m+      
am5dm5ts ,section #heb ( su* ,act is    
am5d$ 7#bb ,u4,s4,c4 #djga;a7--  7#a7 by
 /rik+ p>agraphs 7#g7 & 7#h72 &  7#b7 by
 r$esignat+ p>agraphs 7#i71 7#aj71 &    
7#aa7 z p>agraphs 7#g71 7#h71 & 7#i71   
respectively4  7d7 ,application  7#a7 ,9
 g5]al ,! am5dm5ts made by ?is section  
%all apply on ! fir/ day ( ! fir/ pay   
p]iod beg9n+ aft] ! date ( enactm5t (   
?is ,act4  7#b7 ,treatm5t ( =m] revis$  
or fur!r revis$ annuitants ,any         
individual :o1 z ( ! date ( enactm5t (  
?is ,act1 0 a revis$ annuity p>ticipant 
or a fur!r revis$ annuity p>ticipant 7b 
= ! am5dm5ts made by ?is section7 %all  
be deem$ to be a p>ticipant 7z t t]m is 
def9$ 9 section #heb ( ! ,=eign ,s]vice 
,act ( #aihj 7#bb ,u4,s4,c4 #djga;a77 = 
purposes ( ! ,=eign ,s]vice p5sion      
sy/em4  #d4 ,treatm5t ( =eign           
corporations manag$ & controll$ 9 !     
,unit$ ,/ates z dome/ic corporations    
7a7 ,9 g5]al ,section #ggja ( ! ,int]nal

 ,rev5ue ,code ( #aihf is am5d$ by      
r$esignat+ subsection 7p7 z subsection  
7q7 & by ins]t+ aft] subsection 7o7 !   
foll[+ new subsection3  7p7 ,c]ta9      
corporations manag$ & controll$ 9 !     
,unit$ ,/ates treat$ z dome/ic = income 
tax  7#a7 ,9 g5]al ,not)/&+ subsection  
7a77#d71 9 ! case ( a corporation       
describ$ 9 p>agraph 7#b7 if--  7,a7 !   
corporation w\ld n o!rwise be treat$ z a
 dome/ic corporation = purposes ( ?is   
title1 b  7,b7 ! managem5t & control ( !
 corporation occurs1 directly or        
indirectly1 prim>ily )9 ! ,unit$ ,/ates1
  !n1 solely = purposes ( *apt] #a 7&   
any o!r provision ( ?is title relat+ to 
*apt] #a71 ! corporation %all be treat$ 
z a dome/ic corporation4  7#b7          
,corporation describ$  7,a7 ,9 g5]al ,a 
corporation is describ$ 9 ?is p>agraph  
if--  7i7 ! /ock ( su* corporation is   
regul>ly trad$ on an e/abli%$ securities
 m>ket1 or  7ii7 ! aggregate gross      
assets ( su* corporation 7or any        
pr$ecessor !re(71 includ+ assets "u     

managem5t = inve/ors1 :e!r held directly
 or indirectly1 at any "t dur+ ! taxable
 ye> or any prec$+ taxable ye> is       
#ej1jjj1jjj or m4  7,b7 ,g5]al exception
 ,a corporation %all n be treat$ z      
describ$ 9 ?is p>agraph if--  7i7 su*   
corporation 0 treat$ z a corporation    
describ$ 9 ?is p>agraph 9 a prec$+      
taxable ye>1  7ii7 su* corporation--    
7,i7 is n regul>ly trad$ on an e/abli%$ 
securities m>ket1 &  7,,ii7 has1 & is   
reasonably expect$ to cont9ue to h1     
aggregate gross assets 7includ+ assets  
"u managem5t = inve/ors1 :e!r held      
directly or indirectly7 ( less ?an      
#ej1jjj1jjj1 &  7iii7 ! ,secret>y grants
 a waiv] to su* corporation "u ?is      
subp>agraph4  7#c7 ,managem5t & control 
7,a7 ,9 g5]al ,! ,secret>y %all         
prescribe regulations = purposes (      
det]m9+ cases 9 :i* ! managem5t &       
control ( a corporation is to be treat$ 
z occurr+ prim>ily )9 ! ,unit$ ,/ates4  
7,b7 ,executive (fic]s & s5ior managem5t
 ,su* regulations %all provide t--  7i7 

! managem5t & control ( a corporation   
%all be treat$ z occurr+ prim>ily )9 !  
,unit$ ,/ates if sub/antially all ( !   
executive (fic]s & s5ior managem5t ( !  
corporation :o ex]cise day-to-day       
responsibility = mak+ decisions involv+ 
/rategic1 f9ancial1 & op]ational        
policies ( ! corporation are locat$     
prim>ily )9 ! ,unit$ ,/ates1 &  7ii7    
individuals :o are n executive (fic]s & 
s5ior managem5t ( ! corporation 7includ+
 individuals :o are (fic]s or employees 
( o!r corporations 9 ! same *a9 (       
corporations z ! corporation7 %all be   
treat$ z executive (fic]s & s5ior       
managem5t if su* individuals ex]cise !  
day-to-day responsibilities ( !         
corporation describ$ 9 clause 7i74  7,c7
 ,corporations prim>ily hold+ inve/m5t  
assets ,su* regulations %all also       
provide t ! managem5t & control ( a     
corporation %all be treat$ z occurr+    
prim>ily )9 ! ,unit$ ,/ates if--  7i7 ! 
assets ( su* corporation 7directly or   
indirectly7 consi/ prim>ily ( assets be+

 manag$ on behalf ( inve/ors1 &  7ii7   
decisions ab\t h[ to inve/ ! assets are 
made 9 ! ,unit$ ,/ates4  4  7b7         
,effective date ,! am5dm5ts made by ?is 
section %all apply to taxable ye>s      
beg9n+ on or aft] ! date :i* is #b ye>s 
aft] ! date ( ! enactm5t ( ?is ,act1    
:e!r or n regulations are issu$ "u      
section #ggja7p77#c7 ( ! ,int]nal       
,rev5ue ,code ( #aihf1 z add$ by ?is    
section4  #e4 ,modifications to rules   
relat+ to inv]t$ corporations  7a7 ,9   
g5]al ,subsection 7b7 ( section #ghgd ( 
! ,int]nal ,rev5ue ,code ( #aihf is     
am5d$ to read z foll[s3  7b7 ,inv]t$    
corporations treat$ z dome/ic           
corporations  7#a7 ,9 g5]al ,not)/&+    
section #ggja7;a77#d71 a =eign          
corporation %all be treat$ = purposes ( 
?is title z a dome/ic corporation if--  
7,a7 su* corporation w\ld be a surrogate
 =eign corporation if subsection 7a77#b7
 7 appli$ by sub/itut+ #hj p]c5t = #fj  
p]c5t1 or  7,b7 su* corporation is an   
inv]t$ dome/ic corporation4  7#b7       

,inv]t$ dome/ic corporation ,= purposes 
( ?is subsection1 a =eign corporation   
%all be treat$ z an inv]t$ dome/ic      
corporation if1 pursuant to a plan 7or a
 s]ies ( relat$ transactions7--  7,a7 ! 
entity completes aft] ,may #h1 #bjad1 ! 
direct or indirect acquisition (--  7i7 
sub/antially all ( ! prop]ties held     
directly or indirectly by a dome/ic     
corporation1 or  7ii7 sub/antially all (
 ! assets (1 or sub/antially all ( !    
prop]ties con/itut+ a trade or bus9ess  
(1 a dome/ic p>tn]%ip1 &  7,b7 aft] !   
acquisition1 ei!r--  7i7 m ?an #ej p]c5t
 ( ! /ock 7by vote or value7 ( ! entity 
is held--  7,i7 9 ! case ( an           
acquisition ) respect to a dome/ic      
corporation1 by =m] %>ehold]s ( !       
dome/ic corporation by reason ( hold+   
/ock 9 ! dome/ic corporation1 or  7,,ii7
 9 ! case ( an acquisition ) respect to 
a dome/ic p>tn]%ip1 by =m] p>tn]s ( !   
dome/ic p>tn]%ip by reason ( hold+ a    
capital or pr(its int]e/ 9 ! dome/ic    
p>tn]%ip1 or  7ii7 ! managem5t & control

 ( ! exp&$ affiliat$ gr\p :i* includes !
 entity occurs1 directly or indirectly1 
prim>ily )9 ! ,unit$ ,/ates1 & su* exp&$
 affiliat$ gr\p has significant dome/ic 
bus9ess activities4  7#c7 ,exception =  
corporations ) sub/antial bus9ess       
activities 9 =eign c\ntry ( organization
 ,a =eign corporation describ$ 9        
p>agraph 7#b7 %all n be treat$ z an     
inv]t$ dome/ic corporation if aft] !    
acquisition ! exp&$ affiliat$ gr\p :i*  
includes ! entity has sub/antial bus9ess
 activities 9 ! =eign c\ntry 9 :i* or "u
 ! law ( :i* ! entity is creat$ or      
organiz$ :5 comp>$ to ! total bus9ess   
activities ( su* exp&$ affiliat$ gr\p4  
,= purposes ( subsection                
7a77#b77;,b77iii7 & ! prec$+ s5t5ce1 !  
t]m sub/antial bus9ess activities %all h
 ! mean+ giv5 su* t]m "u regulations 9  
effect on ,may #h1 #bjad1 except t !    
,secret>y may issue regulations increas+
 ! ?re%old p]c5t 9 any ( ! te/s "u su*  
regulations = det]m9+ if bus9ess        
activities con/itute sub/antial bus9ess 

activities = purposes ( ?is p>agraph4   
7#d7 ,managem5t & control ,= purposes ( 
p>agraph 7#b77;,b77ii7--  7,a7 ,9 g5]al 
,! ,secret>y %all prescribe regulations 
= purposes ( det]m9+ cases 9 :i* !      
managem5t & control ( an exp&$ affiliat$
 gr\p is to be treat$ z occurr+1        
directly or indirectly1 prim>ily )9 !   
,unit$ ,/ates4 ,! regulations prescrib$ 
"u ! prec$+ s5t5ce %all apply to p]iods 
aft] ,may #h1 #bjad4  7,b7 ,executive   
(fic]s & s5ior managem5t ,su*           
regulations %all provide t ! managem5t &
 control ( an exp&$ affiliat$ gr\p %all 
be treat$ z occurr+1 directly or        
indirectly1 prim>ily )9 ! ,unit$ ,/ates 
if sub/antially all ( ! executive (fic]s
 & s5ior managem5t ( ! exp&$ affiliat$  
gr\p :o ex]cise day-to-day              
responsibility = mak+ decisions involv+ 
/rategic1 f9ancial1 & op]ational        
policies ( ! exp&$ affiliat$ gr\p are   
bas$ or prim>ily locat$ )9 ! ,unit$     
,/ates4 ,individuals :o 9 fact ex]cise  
su* day-to-day responsibilities %all be 

treat$ z executive (fic]s & s5ior       
managem5t reg>dless ( _! title4  7#e7   
,significant dome/ic bus9ess activities 
,= purposes ( p>agraph 7#b77;,b77ii71 an
 exp&$ affiliat$ gr\p has significant   
dome/ic bus9ess activities if at lea/   
#be p]c5t (--  7,a7 ! employees ( ! gr\p
 are bas$ 9 ! ,unit$ ,/ates1  7,b7 !    
employee comp5sation incurr$ by ! gr\p  
is incurr$ ) respect to employees bas$ 9
 ! ,unit$ ,/ates1  7,c7 ! assets ( !    
gr\p are locat$ 9 ! ,unit$ ,/ates1 or   
7,d7 ! income ( ! gr\p is d]iv$ 9 !     
,unit$ ,/ates1  det]m9$ 9 ! same mann] z
 su* det]m9ations are made = purposes ( 
det]m9+ sub/antial bus9ess activities "u
 regulations ref]r$ to 9 p>agraph 7#c7 z
 9 effect on ,may #h1 #bjad1 b appli$ by
 treat+ all ref]5ces 9 su* regulations  
to =eign c\ntry & relevant =eign c\ntry 
z ref]5ces to ! ,unit$ ,/ates4 ,!       
,secret>y may issue regulations decreas+
 ! ?re%old p]c5t 9 any ( ! te/s "u su*  
regulations = det]m9+ if bus9ess        
activities con/itute significant dome/ic

 bus9ess activities = purposes ( ?is    
p>agraph4  4  7b7 ,con=m+ am5dm5ts  7#a7
 ,clause 7i7 ( section                  
#ghgd7;a77#b77;,b7 ( su* ,code is am5d$ 
by /rik+ aft] ,m>* #d1 #bjjc1 & ins]t+  
aft] ,m>* #d1 #bjjc1 & be=e ,may #i1    
#bjad14  7#b7 ,subsection 7c7 ( section 
#ghgd ( su* ,code is am5d$--  7,a7 9    
p>agraph 7#b7--  7i7 by /rik+ subsection
 7a77#b77;,b77ii7 & ins]t+ subsections  
7a77#b77;,b77ii7 & 7b77#b77;,b77i71 &   
7ii7 by ins]t+ or 7b77#b77;,a7 aft]     
7a77#b77;,b77i7 9 subp>agraph 7,b71     
7,b7 9 p>agraph 7#c71 by ins]t+ or      
7b77#b77;,b77i71 z ! case may be1 aft]  
7a77#b77;,b77ii71  7,c7 9 p>agraph 7#e71
 by /rik+ subsection 7a77#b77;,b77ii7 & 
ins]t+ subsections 7a77#b77;,b77ii7 &   
7b77#b77;,b77i71 &  7,d7 9 p>agraph     
7#f71 by ins]t+ or inv]t$ dome/ic       
corporation1 z ! case may be1 aft]      
surrogate =eign corporation4  7c7       
,effective date ,! am5dm5ts made by ?is 
section %all apply to taxable ye>s end+ 
aft] ,may #h1 #bjad4