,i  #aae? ,,congress  #a/ ,session  ,h4 
,r4 #aicb  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,april #e1 #bjag,mr4  
,doggett 7= himself1 ,mr4 ,blum5au]1    
,ms4 ,bonamici1 ,mr4 ,capuano1 ,mr4     
,c>twright1 ,ms4 ,judy ,*u ( ,cali=nia1 
,mr4 ,cicill9e1 ,mr4 ,coh51 ,mr4        
,cony]s1 ,mr4 ,cumm+s1 ,mr4 ,de,fazio1  
,ms4 ,de,lauro1 ,mr4 ,deut*1 ,mr4       
,ellison1 ,mr4 ,fo/]1 ,mr4 ,grijalva1   
,mr4 ,gutirrez1 ,mr4 ,ha/+s1 ,ms4 ,eddie
 ,b]nice ,johnson ( ,texas1 ,mr4        
,johnson ( ,georgia1 ,ms4 ,kaptur1 ,ms4 
,kelly ( ,ill9ois1 ,mr4 ,langev91 ,mr4  
,l>son ( ,connecticut1 ,ms4 ,lee1 ,mr4  
,lewis ( ,georgia1 ,mr4 ,t$ ,lieu (     
,cali=nia1 ,mr4 ,loebsack1 ,mr4 ,lyn*1  
,ms4 ,mc,collum1 ,ms4 ,moore1 ,mrs4     
,napolitano1 ,ms4 ,norton1 ,mr4         
,pallone1 ,mr4 ,pocan1 ,mr4 ,rask91 ,ms4
 ,roybal-,all>d1 ,mr4 ,ruiz1 ,mr4 ,ryan 
( ,ohio1 ,mr4 ,s>banes1 ,ms4 ,s*ak[sky1 
,ms4 ,slaught]1 ,mr4 ,takano1 ,mr4      
,tonko1 ,ms4 ,tsongas1 ,ms4 ,velzquez1  
,mrs4 ,watson ,coleman1 ,mr4 ,wel*1 ,mr4

 ,higg9s ( ,new ,york1 ,mr4 ,y>mu?1 ,mr4
 ,nadl]1 ,ms4 ,p+ree1 ,mr4 ,huffman1    
,mr4 ,scott ( ,virg9ia1 ,mr4 ,pascrell1 
,mr4 ,mc,govern1 & ,mr4 ,lip9ski7       
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,ways & ,means1 & 9    
addition to ! ,committee on ,f9ancial   
,s]vices1 = 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 end (f%ore corporate tax   
avoidance1 & = o!r purposes4  #a4 ,%ort 
title1 etc  7a7 ,%ort title ,?is ,act   
may be cit$ z ! ,/op ,tax ,hav5 ,abuse  
,act4  7b7 ,am5dm5t ( #aihf code ,except
 z o!rwise expressly provid$1 :5ev] 9   
?is ,act an am5dm5t or repeal is        
express$ 9 t]ms ( an am5dm5t to1 or     
repeal (1 a section or o!r provision1 ! 
ref]5ce %all be consid]$ to be made to a
 section or o!r provision ( ! ,int]nal  
,rev5ue ,code ( #aihf4  7c7 ,table (    
cont5ts ,! table ( cont5ts ( ?is ,act is
 z foll[s3 ,sec4 #a4 ,%ort title1 etc4  

,title ,i--,end+ corporate (f%ore tax   
avoidance ,sec4 #aja4 ,allocation (     
exp5ses & taxes on basis ( repatriation 
( =eign income4 ,sec4 #ajb4 ,excess     
income f transf]s ( intangibles to      
l[-tax$ affiliates treat$ z subp>t ,f   
income4 ,sec4 #ajc4 ,limitations on     
income %ift+ ?r\gh intangible prop]ty   
transf]s4 ,sec4 #ajd4 ,repeal (         
*eck-!-box rules = c]ta9 =eign entities 
& ,,cfc look-?ru rules4 ,sec4 #aje4     
,re/rictions on d$uction = int]e/ exp5se
 ( memb]s ( f9ancial report+ gr\ps )    
excess dome/ic indebt$ness4 ,sec4 #ajf4 
,treatm5t ( =eign corporations manag$ & 
controll$ 9 ! ,unit$ ,/ates z dome/ic   
corporations4 ,sec4 #ajg4 ,swap paym5ts 
made f ! ,unit$ ,/ates to p]sons (f%ore4
 ,sec4 #ajh4 ,modifications to rules    
relat+ to inv]t$ corporations4 ,sec4    
#aji4 ,c\ntry-by-c\ntry report+4 ,title 
,,ii--,additional measures to combat tax
 evasion ,sec4 #bja4 ,au?oriz+ special  
measures aga9/ =eign jurisdictions1     
f9ancial in/itutions1 & o!rs t          

significantly imp$e ,unit$ ,/ates tax   
en=cem5t4 ,sec4 #bjb4 ,/r5g!n+ ! ,=eign 
,acc\nt ,tax ,compliance ,act 7,,fatca74
 ,sec4 #bjc4 ,report+ ,unit$ ,/ates     
b5eficial own]s ( =eign own$ f9ancial   
acc\nts4 ,sec4 #bjd4 ,p5alty = fail+ to 
disclose (f%ore hold+s4 ,sec4 #bje4     
,deadl9e = anti-money laund]+ rule =    
inve/m5t advis]s4 ,sec4 #bjf4           
,anti-money laund]+ requirem5ts =       
=mation ag5ts4 ,sec4 #bjg4 ,/r5g!n+     
,john ,doe summons proce$+s4 ,sec4 #bjh4
 ,improv+ en=cem5t ( =eign f9ancial     
acc\nt report+4  ,i ,end+ corporate     
(f%ore tax avoidance  #aja4 ,allocation 
( exp5ses & taxes on basis (            
repatriation ( =eign income  7a7 ,9     
g5]al ,"p ,,iii ( sub*apt] ,n ( *apt] #a
 is am5d$ by ins]t+ aft] subp>t ,g !    
foll[+ new subp>t3  ,h ,special ,rules =
 ,allocation ( ,=eign-,relat$ ,d$uctions
 & ,=eign ,tax ,cr$its  ,sec4 #ige4     
,d$uctions allocat$ to def]r$ =eign     
income may n (fset ,unit$ ,/ates s\rce  
income4 ,sec4 #igf4 ,am\nt ( =eign taxes

 comput$ on ov]all basis4 ,sec4 #igg4   
,application ( subp>t4  #ige4 ,d$uctions
 allocat$ to def]r$ =eign income may n  
(fset ,unit$ ,/ates s\rce income  7a7   
,curr5t ye> d$uctions ,= purposes ( ?is 
*apt]1 =eign-relat$ d$uctions = any     
taxable ye>-- 7#a7 %all be tak5 into    
acc\nt = su* taxable ye> only to ! ext5t
 t su* d$uctions are allocable to       
curr5tly-tax$ =eign income1 &  7#b7 to !
 ext5t n s all[$1 %all be tak5 into     
acc\nt 9 subsequ5t taxable ye>s z       
provid$ 9 subsection 7b74  ,=eign-relat$
 d$uctions %all be allocat$ to          
curr5tly-tax$ =eign income 9 ! same     
proportion :i* curr5tly-tax$ =eign      
income be>s to ! sum ( curr5tly-tax$    
=eign income & def]r$ =eign income4  7b7
 ,d$uctions relat$ to repatriat$ def]r$ 
=eign income  7#a7 ,9 g5]al ,if !re is  
repatriat$ =eign income = a taxable ye>1
 ! portion ( ! previ\sly def]r$         
d$uctions allocat$ to ! repatriat$ =eign
 income %all be tak5 into acc\nt = !    
taxable ye> z a d$uction allocat$ to    

income f s\rces outside ! ,unit$ ,/ates4
 ,any su* am\nt %all n be includ$ 9     
=eign-relat$ d$uctions = purposes (     
apply+ subsection 7a7 to su* taxable    
ye>4  7#b7 ,portion ( previ\sly def]r$  
d$uctions ,= purposes ( p>agraph 7#a71 !
 portion ( ! previ\sly def]r$ d$uctions 
allocat$ to repatriat$ =eign income is--
  7,a7 ! am\nt :i* be>s ! same          
proportion to su* d$uctions1 z  7,b7 !  
repatriat$ income be>s to ! previ\sly   
def]r$ =eign income4  7c7 ,def9itions & 
special rule ,= purposes ( ?is section--
 7#a7 ,=eign-relat$ d$uctions ,! t]m    
=eign-relat$ d$uctions means ! total    
am\nt ( d$uctions & exp5ses :i* w\ld be 
allocat$ or apportion$ to gross income f
 s\rces )\t ! ,unit$ ,/ates = ! taxable 
ye> if bo? ! curr5tly-tax$ =eign income 
& def]r$ =eign income 7 tak5 into       
acc\nt4  7#b7 ,curr5tly-tax$ =eign      
income ,! t]m curr5tly-tax$ =eign income
 means ! am\nt ( gross income f s\rces  
)\t ! ,unit$ ,/ates = ! taxable ye>     
7det]m9$ )\t reg>d to repatriat$ =eign  

income = su* ye>74  7#c7 ,def]r$ =eign  
income ,! t]m def]r$ =eign income means 
! excess (-- 7,a7 ! am\nt t w\ld be     
includible 9 gross income "u subp>t ,f (
 ?is "p = ! taxable ye> if--  7i7 all   
controll$ =eign corporations 7 treat$ z 
"o controll$ =eign corporation1 &  7ii7 
all e>n+s & pr(its ( all controll$ =eign
 corporations 7 subp>t ,f income 7z     
def9$ 9 section #ieb71 ov]  7,b7 ! sum  
(-- 7i7 all divid5ds receiv$ dur+ !     
taxable ye> f controll$ =eign           
corporations1 plus  7ii7 am\nts         
includible 9 gross income "u section    
#iea7;a74  7#d7 ,previ\sly def]r$ =eign 
income ,! t]m previ\sly def]r$ =eign    
income means ! aggregate am\nt ( def]r$ 
=eign income = all prior taxable ye>s to
 :i* ?is "p applies1 det]m9$ z ( !      
beg9n+ ( ! taxable ye>1 r$uc$ by !      
repatriat$ =eign income = all su* prior 
taxable ye>s4  7#e7 ,repatriat$ =eign   
income ,! t]m repatriat$ =eign income   
means ! am\nt includ$ 9 gross income on 
acc\nt ( di/ributions out ( previ\sly   

def]r$ =eign income4  7#f7 ,previ\sly   
def]r$ d$uctions ,! t]m previ\sly def]r$
 d$uctions means ! aggregate am\nt (    
=eign-relat$ d$uctions n tak5 into      
acc\nt "u subsection 7a7 = all prior    
taxable ye>s 7det]m9$ z ( ! beg9n+ ( !  
taxable ye>71 r$uc$ by any am\nts tak5  
into acc\nt "u subsection 7b7 = su*     
prior taxable ye>s4  7#g7 ,treatm5t (   
c]ta9 =eign taxes  7,a7 ,paid by        
controll$ =eign corporation ,section #gh
 %all n apply = purposes ( det]m9+      
curr5tly-tax$ =eign income & def]r$     
=eign income4  7,b7 ,paid by taxpay] ,= 
purposes ( det]m9+ curr5tly-tax$ =eign  
income1 gross income f s\rces )\t !     
,unit$ ,/ates %all be r$uc$ by !        
aggregate am\nt ( taxes describ$ 9 !    
applicable p>agraph ( section #ija7;b7  
:i* are paid by ! taxpay] 7)\t reg>d to 
sections #ijb & #ifj7 dur+ ! taxable    
ye>4  7#h7 ,coord9ation ) section #igf  
,9 det]m9+ curr5tly-tax$ =eign income & 
def]r$ =eign income1 ! am\nt ( deem$    
=eign tax cr$its %all be det]m9$ ) reg>d

 to section #igf4  #igf4 ,am\nt ( =eign 
taxes comput$ on ov]all basis  7a7      
,curr5t ye> all[ance ,= purposes ( ?is  
*apt]1 ! am\nt tak5 into acc\nt z =eign 
income taxes = any taxable ye> %all be  
an am\nt :i* be>s ! same ratio to !     
total =eign income taxes = t taxable ye>
 z--  7#a7 ! curr5tly-tax$ =eign income 
= su* taxable ye>1 be>s to  7#b7 ! sum (
 ! curr5tly-tax$ =eign income & def]r$  
=eign income = su* ye>4  ,! portion ( ! 
total =eign income taxes = any taxable  
ye> n tak5 into acc\nt "u ! prec$+      
s5t5ce = a taxable ye> %all only be tak5
 into acc\nt z provid$ 9 subsection 7b7 
7& %all n be tak5 into acc\nt = purposes
 ( apply+ sections #ijb & #ifj74  7b7   
,all[ance relat$ to repatriat$ def]r$   
=eign income  7#a7 ,9 g5]al ,if !re is  
repatriat$ =eign income = any taxable   
ye>1 ! portion ( ! previ\sly def]r$     
=eign income taxes paid or accru$ dur+  
su* taxable ye> %all be tak5 into acc\nt
 = ! taxable ye> z =eign taxes paid or  
accru$4 ,any su* taxes s tak5 into      

acc\nt %all n be includ$ 9 =eign income 
taxes = purposes ( apply+ subsection 7a7
 to su* taxable ye>4  7#b7 ,portion (   
previ\sly def]r$ =eign income taxes ,=  
purposes ( p>agraph 7#a71 ! portion ( ! 
previ\sly def]r$ =eign income taxes     
allocat$ to repatriat$ def]r$ =eign     
income is--  7,a7 ! am\nt :i* be>s !    
same proportion to su* taxes1 z  7,b7 ! 
repatriat$ def]r$ income be>s to !      
previ\sly def]r$ =eign income4  7c7     
,def9itions & special rule ,= purposes (
 ?is section-- 7#a7 ,previ\sly def]r$   
=eign income taxes ,! t]m previ\sly     
def]r$ =eign income taxes means !       
aggregate am\nt ( total =eign income    
taxes n tak5 into acc\nt "u subsection  
7a7 = all prior taxable ye>s 7det]m9$ z 
( ! beg9n+ ( ! taxable ye>71 r$uc$ by   
any am\nts tak5 into acc\nt "u          
subsection 7b7 = su* prior taxable ye>s4
  7#b7 ,total =eign income taxes ,! t]m 
total =eign income taxes means ! sum (  
=eign income taxes paid or accru$ dur+ !
 taxable ye> 7det]m9$ )\t reg>d to      

section #ijd7;c77 plus ! increase 9     
=eign income taxes t w\ld be paid or    
accru$ dur+ ! taxable ye> "u sections   
#ijb & #ifj if--  7,a7 all controll$    
=eign corporations 7 treat$ z "o        
controll$ =eign corporation1 &  7,b7 all
 e>n+s & pr(its ( all controll$ =eign   
corporations 7 subp>t ,f income 7z def9$
 9 section #ieb74  7#c7 ,=eign income   
taxes ,! t]m =eign income taxes means   
any income1 w> pr(its1 or excess pr(its 
taxes paid by ! taxpay] to any =eign    
c\ntry or possession ( ! ,unit$ ,/ates4 
7#d7 ,curr5tly-tax$ =eign income &      
def]r$ =eign income ,! t]ms             
curr5tly-tax$ =eign income & def]r$     
=eign income h ! mean+s giv5 su* t]ms by
 section #ige7;c74  #igg4 ,application (
 subp>t ,?is subp>t--  7#a7 %all be     
appli$ be=e subp>t ,a1 &  7#b7 %all be  
appli$ sep>ately ) respect to !         
categories ( income specifi$ 9 section  
#ijd7;d77#a74  4  7b7 ,cl]ical am5dm5t  
,! table ( subp>ts = "p ,,iii ( subp>t  
,n ( *apt] #a is am5d$ by ins]t+ aft] ! 

item relat+ to subp>t ,g ! foll[+ new   
item3  ,subp>t ,h4 ,special ,rules =    
,allocation ( ,=eign-,relat$ ,d$uctions 
& ,=eign ,tax ,cr$its  4  7c7 ,effective
 date ,! am5dm5ts made by ?is section   
%all apply to taxable ye>s beg9n+ aft] !
 date ( ! enactm5t ( ?is ,act4  #ajb4   
,excess income f transf]s ( intangibles 
to l[-tax$ affiliates treat$ z subp>t ,f
 income  7a7 ,9 g5]al ,subsection 7a7 ( 
section #ied is am5d$ by ins]t+ aft]    
p>agraph 7#c7 ! foll[+ new p>agraph3    
7#d7 ! =eign base company excess        
intangible income = ! taxable ye>       
7det]m9$ "u subsection 7f7 & r$uc$ z    
provid$ 9 subsection 7b77#e771 &  4  7b7
 ,=eign base company excess intangible  
income ,section #ied is am5d$ by ins]t+ 
aft] subsection 7e7 ! foll[+ new        
subsection3  7f7 ,=eign base company    
excess intangible income ,= purposes (  
subsection 7a77#d7 & ?is subsection3    
7#a7 ,=eign base company excess         
intangible income def9$  7,a7 ,9 g5]al  
,! t]m =eign base company excess        

intangible income means1 ) respect to   
any cov]$ intangible1 ! excess (-- 7i7 !
 sum (--  7,i7 gross income f ! sale1   
lease1 lic5se1 or o!r disposition (     
prop]ty 9 :i* su* cov]$ intangible is   
us$ directly or indirectly1 &  7,,ii7   
gross income f ! provision ( s]vices    
relat$ to su* cov]$ intangible or 9     
connection ) prop]ty 9 :i* su* cov]$    
intangible is us$ directly or           
indirectly1 ov]  7ii7 #aej p]c5t ( !    
co/s prop]ly allocat$ & apportion$ to ! 
gross income tak5 into acc\nt "u clause 
7i7 o!r ?an exp5ses = int]e/ & taxes &  
any exp5ses :i* are n directly allocable
 to su* gross income4  7,b7 ,same c\ntry
 income n tak5 into acc\nt ,if-- 7i7 !  
sale1 lease1 lic5se1 or o!r disposition 
( ! prop]ty ref]r$ to 9 subp>agraph     
7,a77i77,i7 is = use1 consumption1 or   
disposition 9 ! c\ntry "u ! laws ( :i* !
 controll$ =eign corporation is creat$  
or organiz$1 or  7ii7 ! s]vices ref]r$  
to 9 subp>agraph 7,a77i77,,ii7 are p]=m$
 9 su* c\ntry1  ! gross income f su*    

sale1 lease1 lic5se1 or o!r disposition1
 or provision ( s]vices1 %all n be tak5 
into acc\nt "u subp>agraph 7,a77i74     
7#b7 ,exception bas$ on effective =eign 
income tax rate  7,a7 ,9 g5]al ,=eign   
base company excess intangible income   
%all n include ! applicable p]c5tage (  
any item ( income receiv$ by a controll$
 =eign corporation if ! taxpay]         
e/abli%es to ! satisfaction ( !         
,secret>y t su* income 0 subject to an  
effective rate ( income tax impos$ by a 
=eign c\ntry 9 excess ( #e p]c5t4  7,b7 
,applicable p]c5tage ,= purposes (      
subp>agraph 7,a71 ! t]m applicable      
p]c5tage means ! ratio 7express$ z a    
p]c5tage71 n great] ?an #ajj p]c5t1 (-- 
7i7 ! numb] ( p]c5tage po9ts by :i* !   
effective rate ( income tax ref]r$ to 9 
subp>agraph 7,a7 exce$s #e p]c5tage     
po9ts1 ov]  7ii7 #aj p]c5tage po9ts4    
7,c7 ,treatm5t ( losses 9 det]m9+       
effective rate ( =eign income tax ,=    
purposes ( det]m9+ ! effective rate (   
income tax impos$ by any =eign c\ntry-- 

7i7 su* effective rate %all be det]m9$  
)\t reg>d to any losses c>ri$ to !      
relevant taxable ye>1 &  7ii7 to ! ext5t
 ! income ) respect to su* intangible   
r$uces losses 9 ! relevant taxable ye>1 
su* effective rate %all be treat$ z be+ 
! effective rate :i* w\ld h be5 impos$  
on su* income )\t reg>d to su* losses4  
7#c7 ,cov]$ intangible ,! t]m cov]$     
intangible means1 ) respect to any      
controll$ =eign corporation1 any        
intangible prop]ty 7z def9$ 9 section   
#icf7;h77#c77;,b77--  7,a7 :i* is sold1 
leas$1 lic5s$1 or o!rwise transf]r$     
7directly or indirectly7 to su*         
controll$ =eign corporation f a relat$  
p]son1 or  7,b7 ) respect to :i* su*    
controll$ =eign corporation & "o or m   
relat$ p]sons has 7directly or          
indirectly7 ent]$ into any %>$ risk or  
developm5t agreem5t 7includ+ any co/ %>+
 agreem5t74  7#d7 ,relat$ p]son ,! t]m  
relat$ p]son has ! mean+ giv5 su* t]m 9 
subsection 7d77#c74  4  7c7 ,sep>ate    
basket = =eign tax cr$it ,subsection 7d7

 ( section #ijd is am5d$ by r$esignat+  
p>agraph 7#g7 z p>agraph 7#h7 & by      
ins]t+ aft] p>agraph 7#f7 ! foll[+ new  
p>agraph3  7#g7 ,sep>ate application to 
=eign base company excess intangible    
income  7,a7 ,9 g5]al ,subsections 7a71 
7b71 & 7c7 ( ?is section & sections     
#ijb1 #ijg1 & #ifj %all be appli$       
sep>ately ) respect to ea* item ( income
 :i* is tak5 into acc\nt "u section     
#ied7;a77#d7 z =eign base company excess
 intangible income4  7,b7 ,regulations  
,! ,secret>y may issue su* regulations  
or o!r guidance z is necess>y or        
appropriate to c>ry out ! purposes ( ?is
 subsection1 includ+ regulations or o!r 
guidance :i* provides t relat$ items (  
income may be aggregat$ = purposes ( ?is
 p>agraph4  4  7d7 ,con=m+ am5dm5ts     
7#a7 ,p>agraph 7#d7 ( section #ied7;b7  
is am5d$ by ins]t+ =eign base company   
excess intangible income describ$ 9     
subsection 7a77#d7 or be=e =eign base   
company oil-relat$ income 9 ! la/ s5t5ce
 !re(4  7#b7 ,subsection 7b7 ( section  

#ied is am5d$ by add+ at ! end ! foll[+ 
new p>agraph3  7#g7 ,=eign base company 
excess intangible income n treat$ z     
ano!r k9d ( base company income ,income 
( a corporation :i* is =eign base       
company excess intangible income %all n 
be consid]$ =eign base company income ( 
su* corporation "u p>agraph 7#b71 7#c71 
or 7#e7 ( subsection 7a74  4  7e7       
,effective date ,! am5dm5ts made by ?is 
section %all apply to taxable ye>s      
beg9n+ aft] ! date ( ! enactm5t ( ?is   
,act4  #ajc4 ,limitations on income     
%ift+ ?r\gh intangible prop]ty transf]s 
7a7 ,cl>ification ( def9ition (         
intangible asset ,clause 7vi7 ( section 
#icf7;h77#c77;,b7 is am5d$ by ins]t+    
7includ+ any section #aig intangible    
describ$ 9 subp>agraph 7,a71 7,b71 or   
7,c77i7 ( subsection 7d77#a7 ( su*      
section7 aft] item4  7b7 ,cl>ification (
 all[able valuation me?ods  7#a7 ,=eign 
corporations ,p>agraph 7#b7 ( section   
#cfg7;d7 is am5d$ by add+ at ! end !    
foll[+ new subp>agraph3  7,d7           

,regulatory au?ority ,= purposes ( ! la/
 s5t5ce ( subp>agraph 7,a71 ! ,secret>y 
may require--  7i7 ! valuation (        
transf]s ( intangible prop]ty on an     
aggregate basis1 or  7ii7 ! valuation ( 
su* a transf] on ! basis ( ! reali/ic   
alt]natives to su* a transf]1  9 any    
case 9 :i* ! ,secret>y det]m9es t su*   
basis is ! mo/ reliable means (         
valuation ( su* transf]s4  4  7#b7      
,allocation among taxpay]s ,section #dhb
 is am5d$ by add+ at ! end ! foll[+3 ,= 
purposes ( ! prec$+ s5t5ce1 ! ,secret>y 
may require ! valuation ( transf]s (    
intangible prop]ty on an aggregate basis
 or ! valuation ( su* a transf] on !    
basis ( ! reali/ic alt]natives to su* a 
transf]1 9 any case 9 :i* ! ,secret>y   
det]m9es t su* basis is ! mo/ reliable  
means ( valuation ( su* transf]s44  7c7 
,effective date  7#a7 ,9 g5]al ,!       
am5dm5ts made by ?is section %all apply 
to transf]s 9 taxable ye>s beg9n+ aft] !
 date ( ! enactm5t ( ?is ,act4  7#b7 ,no
 inf]5ce ,no?+ 9 ! am5dm5t made by      

subsection 7a7 %all be con/ru$ to create
 any inf]5ce ) respect to ! application 
( section #icf7;h77#c7 ( ! ,int]nal     
,rev5ue ,code ( #aihf1 or ! au?ority ( !
 ,secret>y ( ! ,treasury to provide     
regulations = su* application1 on or    
be=e ! date ( ! enactm5t ( su* am5dm5t4 
#ajd4 ,repeal ( *eck-!-box rules = c]ta9
 =eign entities & ,,cfc look-?ru rules  
7a7 ,*eck-!-,box rules ,p>agraph 7#c7 ( 
section #ggja7;a7 is am5d$-- 7#a7 by    
/rik+ &1 &  7#b7 by ins]t+ aft]         
insurance companies ! foll[+3 1 & any   
=eign bus9ess entity t-- 7,a7 has a s+le
 own] t does n h limit$ liability1 or   
7,b7 has "o or m memb]s all ( :i* h     
limit$ liability  4  7b7 ,look-,?ru rule
 ,subp>agraph 7,c7 ( section            
#ied7;c77#f7 is am5d$ to read z foll[s3 
7,c7 ,t]m9ation ,subp>agraph 7,a7 %all n
 apply to divid5ds1 int]e/1 r5ts1 &     
royalties receiv$ or accru$ aft] ! date 
( ! enactm5t ( ! ,/op ,tax ,hav5 ,abuse 
,act4  4  7c7 ,effective date  7#a7 ,!  
am5dm5ts made by subsection 7a7 %all    

take effect on ! date ( ! enactm5t ( ?is
 ,act4  7#b7 ,! am5dm5t made by         
subsection 7b7 %all apply to paym5ts    
receiv$ aft] ! date ( ! enactm5t ( ?is  
,act4  #aje4 ,re/rictions on d$uction = 
int]e/ exp5se ( memb]s ( f9ancial       
report+ gr\ps ) excess dome/ic          
indebt$ness  7a7 ,9 g5]al ,section #afc 
is am5d$ by r$esignat+ subsection 7n7 z 
subsection 7o7 & by ins]t+ aft]         
subsection 7m7 ! foll[+ new subsection3 
7n7 ,re/riction on d$uction = int]e/    
exp5se ( memb]s ( f9ancial report+ gr\ps
 ) excess dome/ic indebt$ness  7#a7 ,9  
g5]al ,9 ! case ( any corporation :i* is
 a memb] ( an applicable f9ancial       
report+ gr\p ! common p>5t ( :i* is a   
=eign corporation1 ! d$uction all[$ "u  
?is *apt] = int]e/ paid or accru$ by !  
corporation dur+ ! taxable ye> %all n   
exce$ ! applicable limitation = !       
taxable ye>4  7#b7 ,c>ry=w>d ,any am\nt 
disall[$ "u p>agraph 7#a7 = any taxable 
ye> %all be treat$ z int]e/ paid or     
accru$ 9 ! succe$+ taxable ye>4  7#c7   

,applicable limitation ,= purposes ( ?is
 subsection-- 7,a7 ,9 g5]al ,!          
applicable limitation ) respect to a    
taxpay] = any taxable ye> is ! sum (--  
7i7 ! great] (-- 7,i7 ! taxpay]'s       
allocable %>e ( ! applicable f9ancial   
report+ gr\p's net int]e/ exp5se = !    
taxable ye>1 or  7,,ii7 #aj p]c5t ( !   
taxpay]'s adju/$ taxable income = !     
taxable ye>1 plus  7ii7 ! excess        
limitation c>ry=w>ds to ! taxable ye> f 
any prec$+ taxable ye>4  7,b7           
,limitation n less ?an includible int]e/
 ,! applicable limitation "u subp>agraph
 7,a7 = any taxable ye> %all n be less  
?an ! am\nt ( int]e/ includible 9 !     
gross income ( ! taxpay] = ! taxable    
ye>4  7,c7 ,excess limitation c>ry=w>d  
,if ! applicable limitation ( a taxpay] 
= any taxable ye> 7det]m9$ )\t reg>d to 
c>ry=w>ds "u subp>agraph 7,a77ii77      
exce$s ! int]e/ paid or accru$ by !     
taxpay] dur+ ! taxable ye>1 su* excess  
%all be an excess limitation c>ry=w>d to
 ! #a/ succe$+ taxable ye> & ! #bnd &   

#crd succe$+ taxable ye>s to ! ext5t n  
previ\sly tak5 into acc\nt "u ?is       
p>agraph4  7#d7 ,allocable %>e ( net    
int]e/ exp5se ,= purposes ( ?is         
subsection-- 7,a7 ,9 g5]al ,a taxpay]'s 
allocable %>e ( an applicable f9ancial  
report+ gr\p's net int]e/ exp5se = any  
taxable ye> %all be ! am\nt 7n less ?an 
z]o7 :i* be>s ! same ratio to su* net   
int]e/ exp5se z--  7i7 ! net e>n+s ( !  
taxpay]1 be>s to  7ii7 ! aggregate net  
e>n+s ( all memb]s ( ! applicable       
f9ancial report+ gr\p4  7,b7 ,net e>n+s 
,! t]m net e>n+s means1 ) respect to any
 taxpay]1 ! e>n+s ( ! taxpay]-- 7i7     
comput$ )\t reg>d to any r$uction       
all[able =--  7,i7 net int]e/ exp5se1   
7,,ii7 taxes1 or  7,,iii7 depreciation1 
amortization1 or depletion1 &  7ii7     
comput$ ) su* o!r adju/m5ts z !         
,secret>y may by regulations prescribe4 
7,c7 ,burd5 on taxpay] ,if a taxpay]    
elects n to compute its allocable %>e1  
or fails to e/abli% to ! satisfaction ( 
! ,secret>y ! am\nt ( its allocable %>e1

 = any taxable ye>1 ! allocable %>e %all
 be z]o4  7#e7 ,net int]e/ exp5se & net 
e>n+s det]m9ations ,= purposes ( ?is    
subsection-- 7,a7 ,net int]e/ exp5se    
,any det]m9ation ( net int]e/ exp5se =  
any taxable ye> %all be made--  7i7 on !
 basis ( ! applicable f9ancial /atem5t (
 ! applicable f9ancial report+ gr\p = ! 
la/ f9ancial report+ ye> end+ ) or )9 ! 
taxable ye>1 &  7ii7 "u ,unit$ ,/ates   
tax pr9ciples4  7,b7 ,net e>n+s ,any    
det]m9ation ( net e>n+s = any taxable   
ye> %all be made on ! basis ( !         
applicable f9ancial /atem5t ( !         
applicable f9ancial report+ gr\p = ! la/
 f9ancial report+ ye> end+ ) or )9 !    
taxable ye>4  7,c7 ,applicable f9ancial 
/atem5t ,! t]m applicable f9ancial      
/atem5t means a /atem5t = f9ancial      
report+ purposes :i* is made on ! basis 
(-- 7i7 g5]ally accept$ acc\nt+         
pr9ciples1  7ii7 int]national f9ancial  
report+ /&>ds1 or  7iii7 any o!r me?od  
specifi$ by ! ,secret>y 9 regulations4  
,a /atem5t "u clause 7ii7 or 7iii7 may  

be us$ z an applicable f9ancial /atem5t 
by a gr\p only if !re is no /atem5t ( ! 
gr\p "u any prec$+ clause4  7#f7        
,applicable f9ancial report+ gr\p ,=    
purposes ( ?is subsection-- 7,a7 ,9     
g5]al ,! t]m applicable f9ancial report+
 gr\p means1 ) respect to any           
corporation1 a gr\p ( :i* su*           
corporation is a memb] & :i* files an   
applicable f9ancial /atem5t4  7,b7      
,exception = gr\ps ) m9imal dome/ic net 
int]e/ exp5se ,su* t]m %all n include a 
gr\p if ! aggregate net int]e/ exp5se = 
:i* a d$uction is all[able to all memb]s
 ( ! gr\p "u ?is *apt] 7det]m9$ )\t     
reg>d to ?is subsection or any o!r      
limitation on d$uctibility ( int]e/ "u  
?is *apt]7 is less ?an #e1jjj1jjj4  7,c7
 ,exception = c]ta9 f9ancial entities ,a
 corporation :i* is describ$ 9 section  
#hfd7;f77#d77;,b71 or is treat$ z       
describ$ 9 section #hfd7;f77#d77;,b7 by 
reason ( p>agraph 7#d77;,c7 or 7#e77;,a7
 ( section #hfd7;f7 7)\t reg>d to :e!r  
an election is made "u su* p>agraph     

7#e77;,a771 %all n be treat$ z a memb] (
 an applicable f9ancial report+ gr\p (  
:i* x is o!rwise a memb] & ?is          
subsection %all n apply to su*          
corporation4  7#g7 ,o!r def9itions &    
rules ,= purposes ( ?is subsection--    
7,a7 ,adju/$ taxable income ,! t]m      
adju/$ taxable income has ! mean+ giv5  
su* t]m by subsection 7j77#f77;,a74     
7,b7 ,net int]e/ exp5se ,! t]m net      
int]e/ exp5se has ! mean+ giv5 su* t]m  
by subsection 7j77#f77;,b74  7,c7       
,treatm5t ( affiliat$ gr\p ,all memb]s (
 ! same affiliat$ gr\p 7)9 ! mean+ (    
section #aejd7;a77 %all be treat$ z #a  
taxpay]4  7#h7 ,regulations ,! ,secret>y
 %all prescribe su* regulations z may be
 necess>y to c>ry out ! purposes ( ?is  
section1 includ+ regulations provid+--  
7,a7 = ! coord9ation ( ! application (  
?is subsection & o!r provisions ( ?is   
*apt] relat+ to ! d$uctibility ( int]e/1
  7,b7 = ! waiv] ( c]ta9 adju/m5ts      
requir$ "u ,unit$ ,/ates tax pr9ciples 9
 appropriate cases = purposes ( apply+  

?is subsection1  7,c7 = ! det]m9ation ( 
:i* f9ancial in/itutions are eligible = 
! exception f memb]%ip 9 an applicable  
f9ancial report+ gr\p "u p>agraph       
7#f77;,c7 & ! application ( ?is         
subsection to ! o!r memb]s ( ! gr\p :i* 
are n s except$1 &  7,d7 = ! application
 ( ?is subsection 9 ! case ( pass ?ru   
entities & = ! treatm5t ( pass ?ru      
entities z corporations 9 cases :]e     
necess>y to prev5t ! avoidance ( !      
purposes ( ?is subsection4  4  7b7      
,coord9ation ) limitation on relat$ p>ty
 indebt$ness ,p>agraph 7#b7 ( section   
#afc7;j7 ( ! ,int]nal ,rev5ue ,code (   
#aihf is am5d$ by add+ at ! end ! foll[+
 new subp>agraph3  7,d7 ,coord9ation )  
limitation on excess dome/ic indebt$ness
 ,?is subsection %all n apply to any    
corporation = any taxable ye> to :i*    
subsection 7n7 applies to su*           
corporation4  4  7c7 ,effective date ,! 
am5dm5ts made by ?is section %all apply 
to taxable ye>s beg9n+ aft] ,decemb]    
#ca1 #bjaf4  #ajf4 ,treatm5t ( =eign    

corporations manag$ & controll$ 9 !     
,unit$ ,/ates z dome/ic corporations    
7a7 ,9 g5]al ,section #ggja 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  #ajg4 ,swap paym5ts made f !  
,unit$ ,/ates to p]sons (f%ore  7a7 ,tax
 on swap paym5ts receiv$ by =eign p]sons
 ,section #hga7;a77#a7 is am5d$-- 7#a7  
by ins]t+ swap paym5ts 7z id5tifi$ 9    
section #abef7;b77#b77;,b771 aft]       
annuities1 9 subp>agraph 7,a71 &  7#b7  
by add+ at ! end ! foll[+ new s5t5ce3 ,9
 ! case ( swap paym5ts1 ! s\rce ( a swap
 paym5t is det]m9$ by ref]5ce to !      
location ( ! payor44  7b7 ,tax on swap  
paym5ts receiv$ by =eign corporations   
,section #hha7;a7 is am5d$-- 7#a7 by    

ins]t+ swap paym5ts 7z id5tifi$ 9       
section #abef7;b77#b77;,b771 aft]       
annuities1 9 p>agraph 7#a71 &  7#b7 by  
add+ at ! end ! foll[+ new s5t5ce3 ,9 ! 
case ( swap paym5ts1 ! s\rce ( a swap   
paym5t is det]m9$ by ref]5ce to !       
location ( ! payor44  #ajh4             
,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  #aji4             
,c\ntry-by-c\ntry report+  7a7          
,c\ntry-by-,c\ntry ,report+ ,section #ac
 ( ! ,securities ,ex*ange ,act ( #aicd  
7#ae ,u4,s4,c4 #ghm7 is am5d$ by add+ at

 ! end ! foll[+ new subsection3  7s7    
,disclosure ( f9ancial p]=mance on a    
,c\ntry-by-,c\ntry basis  7#a7 ,rules   
requir$ ,! ,commission %all issue rules 
t require ea* issu] to include 9 an     
annual report fil$ by ! issu] ) !       
,commission in=mation on a              
c\ntry-by-c\ntry basis dur+ ! cov]$     
p]iod = ea* tax jurisdiction1 aggregat$ 
f all subsidi>ies resid+ 9 t            
jurisdiction1 consi/+ (--  7,a7 rev5ues 
f unrelat$ p>ties1 relat$ p>ties1 & 9   
total1  7,b7 pr(it or loss be=e taxes1  
7,c7 income tax accru$ = ! curr5t ye>1  
7,d7 income tax paid 7on a ca% basis71  
7,e7 /at$ capital1  7,f7 accumulat$     
e>n+s1  7,g7 numb] ( employees1  7,h7   
tangible assets o!r ?an ca% or ca%      
equival5ts1 &  7,i7 su* o!r f9ancial    
in=mation z ! ,commission may det]m9e is
 necess>y or appropriate 9 ! public     
int]e/ or = ! protection ( inve/ors4    
7#b7 ,rules relat+ to =eign subsidi>y ,=
 ea* =eign subsidi>y1 ! report requir$  
by p>agraph 7#a7 %all be gr\p$ by       

resid5t jurisdiction 7includ+ a gr\p =  
subsidi>ies resid5t n[h]e71 ! tax       
jurisdiction 7if diff]5t71 & ma9 bus9ess
 activity4  4  7b7 ,rulemak+  7#a7      
,deadl9es ,! ,securities & ,ex*ange     
,commission 79 ?is section ref]r$ to z !
 ,commission7 %all-- 7,a7 n lat] ?an    
#bgj days aft] ! date ( enactm5t ( ?is  
,act1 issue a propos$ rule to c>ry out  
?is section & ! am5dm5t made by ?is     
section2 &  7,b7 n lat] ?an #a ye> aft] 
! date ( enactm5t ( ?is ,act1 issue a   
f9al rule to c>ry out ?is section & !   
am5dm5t made by ?is section4  7#b7 ,data
 =mat ,! in=mation requir$ to be provid$
 by ?is section %all be provid$ by !    
issu] 9 a report 9 a =mat prescrib$ by !
 ,commission1 & su* report %all be made 
available to ! public onl9e1 9 su* =mat 
z ! ,commission %all prescribe4  7#c7   
,effective date ,subsection 7s7 (       
section #ac ( ! ,securities ,ex*ange    
,act ( #aicd1 z add$ by ?is section1    
%all become effective #a ye> aft] ! date
 on :i* ! ,commission issues a f9al rule

 "u ?is section4  ,,ii ,additional      
measures to combat tax evasion  #bja4   
,au?oriz+ special measures aga9/ =eign  
jurisdictions1 f9ancial in/itutions1 &  
o!rs t significantly imp$e ,unit$ ,/ates
 tax en=cem5t ,section #ecah;,a ( title 
#ca1 ,unit$ ,/ates ,code1 is am5d$--    
7#a7 by /rik+ ! section head+ & ins]t+ !
 foll[+3  #ecah;,a4 ,special measures = 
jurisdictions1 f9ancial in/itutions1 or 
int]national transactions t are ( prim>y
 money laund]+ conc]n or significantly  
imp$e ,unit$ ,/ates tax en=cem5t  2     
7#b7 9 subsection 7a71 by /rik+ !       
subsection head+ & ins]t+ ! foll[+3  7a7
 ,special ,measures ,to ,c\nt] ,money   
,laund]+ & ,ef=ts ,to ,significantly    
,imp$e ,unit$ ,/ates ,tax ,en=cem5t  2  
7#c7 9 subsection 7c7--  7,a7 by /rik+ !
 subsection head+ & ins]t+ ! foll[+3    
7c7 ,consultations & in=mation ,to be   
consid]$ 9 f9d+ jurisdictions1          
in/itutions1 types ( acc\nts1 or        
transactions ,to be ( prim>y money      
laund]+ conc]n or ,to be significantly  

imp$+ ,unit$ ,/ates tax en=cem5t  2 &   
7,b7 by ins]t+ at ! end ( p>agraph 7#b7 
!re( ! foll[+ new subp>agraph3  7,c7    
,o!r consid]ations ,! fact t a          
jurisdiction or f9ancial in/itution is  
coop]at+ ) ! ,unit$ ,/ates on implem5t+ 
! requirem5ts specifi$ 9 *apt] #d ( !   
,int]nal ,rev5ue ,code ( #aihf may be   
favorably consid]$ 9 evaluat+ :e!r su*  
jurisdiction or f9ancial in/itution is  
significantly imp$+ ,unit$ ,/ates tax   
en=cem5t4  2  7#d7 9 subsection 7a77#a71
 by ins]t+ or is significantly imp$+    
,unit$ ,/ates tax en=cem5t aft] prim>y  
money laund]+ conc]n2  7#e7 9 subsection
 7a77#d7--  7,a7 9 subp>agraph 7,a7--   
7i7 by ins]t+ 9 matt]s involv+ money    
laund]+1 be=e %all consult2 &  7ii7 by  
/rik+ & at ! end2  7,b7 by r$esignat+   
subp>agraph 7,b7 z subp>agraph 7,c72 &  
7,c7 by ins]t+ aft] subp>agraph 7,a7 !  
foll[+3  7,b7 9 matt]s involv+ ,unit$   
,/ates tax en=cem5t1 %all consult ) !   
,commission] ( ,int]nal ,rev5ue1 !      
,secret>y ( ,/ate1 ! ,attorney ,g5]al ( 

! ,unit$ ,/ates1 & 9 ! sole discretion (
 ! ,secret>y1 su* o!r ag5cies & int]e/$ 
p>ties z ! ,secret>y may f9d to be      
appropriate2 &  2  7#f7 9 ea* (         
p>agraphs 7#a77;,a71 7#b71 7#c71 & 7#d7 
( subsection 7b71 by ins]t+ or to be    
significantly imp$+ ,unit$ ,/ates tax   
en=cem5t aft] prim>y money laund]+      
conc]n ea* place t t]m appe>s2  7#g7 9  
subsection 7b71 by /rik+ p>agraph 7#e7 &
 ins]t+ ! foll[+3  7#e7 ,prohibitions or
 conditions on op5+ or ma9ta9+ c]ta9    
correspond5t or payable-?r\gh acc\nts or
 au?oriz+ c]ta9 paym5t c>ds ,if !       
,secret>y f9ds a jurisdiction outside ( 
! ,unit$ ,/ates1 #a or m f9ancial       
in/itutions op]at+ outside ( ! ,unit$   
,/ates1 or #a or m classes (            
transactions )9 or involv+ a            
jurisdiction outside ( ! ,unit$ ,/ates  
to be ( prim>y money laund]+ conc]n or  
to be significantly imp$+ ,unit$ ,/ates 
tax en=cem5t1 ! ,secret>y1 9            
consultation ) ! ,secret>y ( ,/ate1 !   
,attorney ,g5]al ( ! ,unit$ ,/ates1 & ! 

,*airman ( ! ,bo>d ( ,gov]nors ( !      
,f$]al ,res]ve ,sy/em1 may prohibit1 or 
impose conditions ^u--  7,a7 ! op5+ or  
ma9ta9+ 9 ! ,unit$ ,/ates ( a           
correspond5t acc\nt or payable-?r\gh    
acc\nt2 or  7,b7 ! au?orization1        
approval1 or use 9 ! ,unit$ ,/ates ( a  
cr$it c>d1 *>ge c>d1 debit c>d1 or      
simil> cr$it or debit f9ancial in/rum5t 
by any dome/ic f9ancial in/itution1     
f9ancial ag5cy1 or cr$it c>d company or 
association1 = or on behalf ( a =eign   
bank+ in/itution1 if su* correspond5t   
acc\nt1 payable-?r\gh acc\nt1 cr$it c>d1
 *>ge c>d1 debit c>d1 or simil> cr$it or
 debit f9ancial in/rum5t1 involves any  
su* jurisdiction or in/itution1 or if   
any su* transaction may be conduct$     
?r\gh su* correspond5t acc\nt1          
payable-?r\gh acc\nt1 cr$it c>d1 *>ge   
c>d1 debit c>d1 or simil> cr$it or debit
 f9ancial in/rum5t4  2  7#h7 9          
subsection 7c77#a71 by ins]t+ or is     
significantly imp$+ ,unit$ ,/ates tax   
en=cem5t aft] prim>y money laund]+      

conc]n2  7#i7 9 subsection              
7c77#b77;,a7--  7,a7 9 clause 7ii71 by  
/rik+ bank secrecy or special regulatory
 advantages & ins]t+ bank1 tax1         
corporate1 tru/1 or f9ancial secrecy or 
regulatory advantages2  7,b7 9 clause   
7iii71 by /rik+ sup]visory & c\nt]-money
 & ins]t+ sup]visory1 int]national tax  
en=cem5t1 & c\nt]-money2  7,c7 9 clause 
7v71 by /rik+ bank+ or secrecy & ins]t+ 
bank+1 tax1 or secrecy2 &  7,d7 9 clause
 7vi71 by ins]t+ 1 tax treaty1 or tax   
in=mation ex*ange agreem5t aft] treaty2 
7#aj7 9 subsection 7c77#b77;,b7-- 7,a7 9
 clause 7i71 by ins]t+ or tax evasion   
aft] money laund]+2 &  7,b7 9 clause    
7iii71 by ins]t+ 1 tax evasion1 aft]    
money laund]+2 &  7#aa7 9 subsection    
7d71 by ins]t+ involv+ money laund]+1 & 
%all notify1 9 writ+1 ! ,committee on   
,f9ance ( ! ,s5ate & ! ,committee on    
,ways & ,means ( ! ,h\se (              
,repres5tatives ( any su* action involv+
 ,unit$ ,/ates tax en=cem5t aft] su*    
action4  #bjb4 ,/r5g!n+ ! ,=eign ,acc\nt

 ,tax ,compliance ,act 7,,fatca7  7a7   
,report+ activities ) respect to passive
 =eign inve/m5t companies ,section      
#abih7;f7 is am5d$ by ins]t+ 1 or :o    
directly or indirectly =ms1 transf]s    
assets to1 is a b5efici>y (1 has a      
b5eficial int]e/ 91 or receives money or
 prop]ty or ! use !re( f1 aft] %>ehold] 
(4  7b7 ,)holdable paym5ts to =eign     
f9ancial in/itutions ,section #adga7;d7 
is am5d$-- 7#a7 by ins]t+ or transaction
 aft] any depository 9 p>agraph         
7#b77;,a71 &  7#b7 by /rik+ or any      
int]e/ & all t foll[s 9 p>agraph        
7#e77;,c7 & ins]t+ d]ivatives1 or any   
int]e/ 7includ+ a futures or =w>d       
contract1 swap1 or option7 9 su*        
securities1 p>tn]%ip int]e/s1           
commodities1 or d]ivatives44  7c7       
,)holdable paym5ts to o!r =eign f9ancial
 in/itutions ,section #adgb is am5d$--  
7#a7 by ins]t+ z a result ( any cu/om]  
id5tification1 anti-money laund]+1      
anti-corruption1 or simil> obligation to
 id5tify acc\nt hold]s1 aft] reason to  

"k1 9 subsection 7b77#b71 &  7#b7 by    
ins]t+ z pos+ a l[ risk ( tax evasion   
aft] ?is subsection 9 subsection        
7c77#a77;,g74  7d7 ,def9itions ,clauses 
7i7 & 7ii7 ( section #adgc7b77;,a7 are  
ea* am5d$ by ins]t+ or z a b5eficial    
own] aft] indirectly4  7e7 ,special     
rules ,section #adgd7;c7 is am5d$-- 7#a7
 by ins]t+ 1 except t in=mation provid$ 
"u section #adga7;c7 or #adgb7;b7 may be
 disclos$ to any ,f$]al law en=cem5t    
ag5cy1 ^u reque/ or ^u ! initiation ( ! 
,secret>y1 to inve/igate or address a   
possible violation ( ,unit$ ,/ates law  
aft] %all apply 9 p>agraph 7#a71 &  7#b7
 by ins]t+ 1 or has _h an agreem5t      
t]m9at$ "u su* section1 aft] section    
#adga7;b7 9 p>agraph 7#b74  7f7         
,in=mation ) respect to =eign f9ancial  
assets ,section #fjch;,d7a7 is am5d$ by 
ins]t+ own]%ip or b5eficial own]%ip aft]
 holds any4  7g7 ,e/abli%+ presumptions 
= entities & transactions involv+       
non-,,fatca in/itutions  7#a7           
,presumptions = tax purposes  7,a7 ,9   

g5]al ,*apt] #gf is am5d$ by ins]t+ aft]
 section #gdia ! foll[+ new sub*apt]3   
,f ,presumptions = c]ta9 legal proce$+s 
,sec4 #gdib4 ,presumptions p]ta9+ to    
entities & transactions involv+         
non-,,fatca in/itutions4  #gdib4        
,presumptions p]ta9+ to entities &      
transactions involv+ non-,,fatca        
in/itutions  7a7 ,control ,= purposes ( 
any ,unit$ ,/ates civil judicial or     
adm9i/rative proce$+ to det]m9e or      
collect tax1 !re %all be a rebuttable   
presumption t a ,unit$ ,/ates p]son :o1 
directly or indirectly1 =m$1 transf]r$  
assets to1 0 a b5efici>y (1 _h a        
b5eficial int]e/ 91 or receiv$ money or 
prop]ty or ! use !re( f an entity1      
includ+ a tru/1 corporation1 limit$     
liability company1 p>tn]%ip1 or         
f\ndation1 t holds an acc\nt1 or 9 any  
o!r mann] has assets1 9 a non-,,fatca   
in/itution1 ex]cis$ control ov] su*     
entity4 ,! presumption ( control creat$ 
by ?is subsection %all n be appli$ to   
prev5t ! ,secret>y f det]m9+ or argu+ ! 

abs5ce ( control4  7b7 ,transf]s (      
income ,= purposes ( any ,unit$ ,/ates  
civil judicial or adm9i/rative proce$+  
to det]m9e or collect tax1 !re %all be a
 rebuttable presumption t any am\nt or  
?+ ( value receiv$ by a ,unit$ ,/ates   
p]son directly or indirectly f an acc\nt
 or f an entity t holds an acc\nt1 or 9 
any o!r mann] has assets1 9 a           
non-,,fatca in/itution1 con/itutes      
income ( su* p]son taxable 9 ! ye> (    
receipt2 & any am\nt or ?+ ( value paid 
or transf]r$ by or on behalf ( a ,unit$ 
,/ates p]son directly or indirectly to  
an acc\nt1 or entity t holds an acc\nt1 
or 9 any o!r mann] has assets1 9 a      
non-,,fatca in/itution1 repres5ts       
previ\sly unreport$ income ( su* p]son  
taxable 9 ! ye> ( ! transf]4  7c7       
,rebutt+ ! presumptions ,! presumptions 
e/abli%$ 9 ?is section may be rebutt$   
only by cle> & conv9c+ evid5ce1 includ+ 
detail$ docum5t>y1 te/imonial1 &        
transactional evid5ce1 e/abli%+ t--     
7#a7 9 subsection 7a71 su* taxpay]      

ex]cis$ no control1 directly or         
indirectly1 ov] acc\nt or entity at ! "t
 9 "q1 &  7#b7 9 subsection 7b71 su*    
am\nts or ?+s ( value did n repres5t    
income relat$ to su* ,unit$ ,/ates      
p]son4  ,any c\rt hav+ jurisdiction ( a 
civil proce$+ 9 :i* control ( su* an    
(f%ore acc\nt or (f%ore entity or !     
income "* ( su* receipts or am\nts      
transf]r$ is an issue %all prohibit !   
introduction by ! taxpay] ( any =eign   
bas$ docum5t t is n au!nticat$ 9 op5    
c\rt by a p]son ) k ( su* docum5t1 or   
any o!r evid5ce suppli$ by a p]son      
outside ! jurisdiction ( a ,unit$ ,/ates
 c\rt1 unless su* p]son appe>s be=e !   
c\rt4  4  7,b7 ,! table ( sub*apt]s =   
*apt] #gf is am5d$ by ins]t+ aft] ! item
 relat+ to sub*apt] ,e ! foll[+ new     
item3  ,sub*apt] ,f4 ,presumptions =    
c]ta9 legal proce$+s  4  7#b7 ,def9ition
 ( non-fatca in/itution ,section        
#ggja7;a7 is am5d$ by add+ at ! end !   
foll[+ new p>agraph3  7#ea7 ,non-fatca  
in/itution ,! t]m non-,,fatca in/itution

 means any =eign f9ancial in/itution t  
does n meet ! report+ requirem5ts (     
section #adga7;b74  4  7#c7             
,presumptions = securities law purposes 
,section #ba ( ! ,securities ,ex*ange   
,act ( #aicd 7#ae ,u4,s4,c4 #ghu7 is    
am5d$ by add+ at ! end ! foll[+ new     
subsection3  7j7 ,presumptions p]ta9+ to
 control & b5eficial own]%ip  7#a7      
,control ,= purposes ( any civil        
judicial or adm9i/rative proce$+ "u ?is 
title1 !re %all be a rebuttable         
presumption t a ,unit$ ,/ates p]son :o1 
directly or indirectly1 =m$1 transf]r$  
assets to1 0 a b5efici>y (1 _h a        
b5eficial int]e/ 91 or receiv$ money or 
prop]ty or ! use !re( f an entity1      
includ+ a tru/1 corporation1 limit$     
liability company1 p>tn]%ip1 or         
f\ndation1 t holds an acc\nt1 or 9 any  
o!r mann] has assets1 9 a non-,,fatca   
in/itution 7z def9$ 9 section           
#ggja7;a77#ea7 ( ! ,int]nal ,rev5ue     
,code ( #aihf71 ex]cis$ control ov] su* 
entity4 ,! presumption ( control creat$ 

by ?is p>agraph %all n be appli$ to     
prev5t ! ,commission f det]m9+ or argu+ 
! abs5ce ( control4  7#b7 ,b5eficial    
own]%ip ,= purposes ( any civil judicial
 or adm9i/rative proce$+ "u ?is title1  
!re %all be a rebuttable presumption t  
securities t are nom9ally own$ by an    
entity1 includ+ a tru/1 corporation1    
limit$ liability company1 p>tn]%ip1 or  
f\ndation1 & t are held 9 a non-,,fatca 
in/itution 7z s def9$71 are b5eficially 
own$ by any ,unit$ ,/ates p]son :o      
directly or indirectly ex]cis$ control  
ov] su* entity4 ,! presumption (        
b5eficial own]%ip creat$ by ?is p>agraph
 %all n be appli$ to prev5t !           
,commission f det]m9+ or argu+ ! abs5ce 
( b5eficial own]%ip4  4  7#d7           
,presumption = report+ purposes relat+  
to =eign f9ancial acc\nts ,section #ecad
 ( title #ca1 ,unit$ ,/ates ,code1 is   
am5d$ by add+ at ! end ! foll[+ new     
subsection3  7d7 ,rebuttable presumption
 ,= purposes ( ?is section1 !re %all be 
a rebuttable presumption t any acc\nt ) 

a non-,,fatca in/itution 7z def9$ 9     
section #ggja7;a77#ea7 ( ! ,int]nal     
,rev5ue ,code ( #aihf7 conta9s funds 9  
an am\nt t is at lea/ suffici5t to      
require a report prescrib$ by           
regulations "u ?is section4  4  7#e7    
,regulatory au?ority ,n lat] ?an #ahj   
days aft] ! date ( enactm5t ( ?is ,act1 
! ,secret>y ( ! ,treasury & ! ,*airman (
 ! ,securities & ,ex*ange ,commission   
%all ea* adopt regulations or o!r       
guidance necess>y to implem5t ! am5dm5ts
 made by ?is subsection4 ,! ,secret>y & 
! ,*airman may1 by regulation or        
guidance1 provide t ! presumption (     
control %all n ext5d to p>ticul> classes
 ( transactions1 su* z corporate        
reorganizations or transactions bel[ a  
specifi$ doll> ?re%old1 if ei!r det]m9es
 t apply+ su* am5dm5ts to su*           
transactions is n necess>y to c>ry out !
 purposes ( su* am5dm5ts4  7h7          
,effective date ,! am5dm5ts made by ?is 
section %all take effect on ! date :i*  
is #ahj days aft] ! date ( enactm5t (   

?is ,act1 :e!r or n regulations are     
issu$ "u subsection 7g77#e74  #bjc4     
,report+ ,unit$ ,/ates b5eficial own]s (
 =eign own$ f9ancial acc\nts  7a7 ,9    
g5]al ,subp>t ,b ( "p ,,iii ( sub*apt]  
,a ( *apt] #fa is am5d$ by ins]t+ aft]  
section #fjde;,b ! foll[+ new sections3 
#fjde;,c4 ,returns reg>d+ ,unit$ ,/ates 
b5eficial own]s ( f9ancial acc\nts      
locat$ 9 ! ,unit$ ,/ates & held 9 ! "n (
 a =eign entity  7a7 ,requirem5t (      
return ,if-- 7#a7 any )hold+ ag5t "u    
sections #adda & #addb has ! control1   
receipt1 cu/ody1 disposal1 or paym5t (  
any am\nt con/itut+ gross income f      
s\rces )9 ! ,unit$ ,/ates ( any =eign   
entity1 includ+ a tru/1 corporation1    
limit$ liability company1 p>tn]%ip1 or  
f\ndation 7o!r ?an an entity ) %>es     
regul>ly trad$ on an e/abli%$ securities
 m>ket71 &  7#b7 su* )hold+ ag5t        
det]m9es = purposes ( title #ad1 #ah1 or
 #ca ( ! ,unit$ ,/ates ,code t a ,unit$ 
,/ates p]son has any b5eficial int]e/ 9 
! =eign entity or 9 ! acc\nt 9 su*      

entity's "n 7h]eaft] 9 ?is section      
ref]r$ to z ,unit$ ,/ates b5eficial     
own]71  !n ! )hold+ ag5t %all make a    
return accord+ to ! =ms or regulations  
prescrib$ by ! ,secret>y4  7b7 ,requir$ 
in=mation ,= purposes ( subsection 7a7 !
 in=mation requir$ to be includ$ on !   
return %all include-- 7#a7 ! "n1        
address1 &1 if kn[n1 ! taxpay]          
id5tification numb] ( ! ,unit$ ,/ates   
b5eficial own]1  7#b7 ! kn[n facts      
p]ta9+ to ! relation%ip ( su* ,unit$    
,/ates b5eficial own] to ! =eign entity 
& ! acc\nt1  7#c7 ! gross am\nt ( income
 f s\rces )9 ! ,unit$ ,/ates 7includ+   
gross proce$s f brok]age transactions71 
&  7#d7 su* o!r in=mation z ! ,secret>y 
may by =ms or regulations provide4  7c7 
,/atem5ts ,to ,be furni%$ to b5eficial  
own]s ) respect to :om in=mation is     
requir$ ,to ,be report$ ,a )hold+ ag5t  
requir$ to make a return "u subsection  
7a7 %all furni% to ea* ,unit$ ,/ates    
b5eficial own] ^: "n is requir$ to be   
set =? 9 su* return a /atem5t %[+--     

7#a7 ! "n1 address1 & telephone numb] ( 
! in=mation contact ( ! p]son requir$ to
 make su* return1 &  7#b7 ! in=mation   
requir$ to be %[n on su* return )       
respect to su* ,unit$ ,/ates b5eficial  
own]4  ,! writt5 /atem5t requir$ "u !   
prec$+ s5t5ce %all be furni%$ to !      
,unit$ ,/ates b5eficial own] on or be=e 
,janu>y #ca ( ! ye> foll[+ ! cal5d> ye> 
= :i* ! return "u subsection 7a7 0      
requir$ to be made4 ,9 ! ev5t ! p]son   
fil+ su* return does n h a curr5t       
address = ! ,unit$ ,/ates b5eficial     
own]1 su* writt5 /atem5t may be mail$ to
 ! address ( ! =eign entity4  #fjde;,d4 
,returns by f9ancial in/itutions reg>d+ 
e/abli%m5t ( acc\nts 9 non-,,fatca      
in/itutions  7a7 ,requirem5t ( return   
,any f9ancial in/itution directly or    
indirectly op5+ a bank1 brok]age1 or o!r
 f9ancial acc\nt = or on behalf ( an    
(f%ore entity1 includ+ a tru/1          
corporation1 limit$ liability company1  
p>tn]%ip1 or f\ndation 7o!r ?an an      
entity ) %>es regul>ly trad$ on an      

e/abli%$ securities m>ket71 9 a         
non-,,fatca in/itution 7z def9$ 9       
section #ggja7;a77#ea77 at ! direction  
(1 on behalf (1 or = ! b5efit ( a ,unit$
 ,/ates p]son %all make a return accord+
 to ! =ms or regulations prescrib$ by ! 
,secret>y4  7b7 ,requir$ in=mation ,=   
purposes ( subsection 7a7 ! in=mation   
requir$ to be includ$ on ! return %all  
include-- 7#a7 ! "n1 address1 & taxpay] 
id5tification numb] ( su* ,unit$ ,/ates 
p]son1  7#b7 ! "n & address ( ! f9ancial
 in/itution at :i* a f9ancial acc\nt is 
op5$1 ! type ( acc\nt1 ! acc\nt numb]1 !
 "n "u :i* ! acc\nt 0 op5$1 & ! am\nt ( 
! initial deposit1  7#c7 if ! acc\nt is 
held 9 ! "n ( an entity1 ! "n & address 
( su* entity1 ! type ( entity1 & ! "n & 
address ( any company =mation ag5t or   
o!r pr(essional employ$ to =m or acquire
 ! entity1 &  7#d7 su* o!r in=mation z !
 ,secret>y may by =ms or regulations    
provide4  7c7 ,/atem5ts ,to be furni%$  
to ,unit$ ,/ates p]sons ) respect to :om
 in=mation is requir$ ,to be report$ ,a 

f9ancial in/itution requir$ to make a   
return "u subsection 7a7 %all furni% to 
ea* ,unit$ ,/ates p]son ^: "n is requir$
 to be set =? 9 su* return a /atem5t    
%[+--  7#a7 ! "n1 address1 & telephone  
numb] ( ! in=mation contact ( ! p]son   
requir$ to make su* return1 &  7#b7 !   
in=mation requir$ to be %[n on su*      
return ) respect to su* ,unit$ ,/ates   
p]son4  ,! writt5 /atem5t requir$ "u !  
prec$+ s5t5ce %all be furni%$ to su*    
,unit$ ,/ates p]son on or be=e ,janu>y  
#ca ( ! ye> foll[+ ! cal5d> ye> = :i* ! 
return "u subsection 7a7 0 requir$ to be
 made4  7d7 ,exemption ,! ,secret>y may 
by regulations exempt any class ( ,unit$
 ,/ates p]sons or any class ( acc\nts or
 entities f ! requirem5ts ( ?is section 
if ! ,secret>y det]m9es t apply+ ?is    
section to su* p]sons1 acc\nts1 or      
entities is n necess>y to c>ry out !    
purposes ( ?is section4  4  7b7         
,p5alties  7#a7 ,returns ,section       
#fgbd7;d77#a77;,b7 is am5d$ by /rik+ or 
at ! end ( clause 7xxiv71 by /rik+ & at 

! end ( clause 7xxv71 & by add+ aft]    
clause 7xxv7 ! foll[+ new clauses3      
7xxvi7 section #fjde;,c7a7 7relat+ to   
returns reg>d+ ,unit$ ,/ates b5eficial  
own]s ( f9ancial acc\nts locat$ 9 !     
,unit$ ,/ates & held 9 ! "n ( a =eign   
entity71 or  7xxvii7 section #fjde;,d7a7
 7relat+ to returns by f9ancial         
in/itutions reg>d+ e/abli%m5t ( acc\nts 
at non-,,fatca in/itutions71 &  4  7#b7 
,payee /atem5ts ,section #fgbd7;d77#b7  
is am5d$ by /rik+ or at ! end (         
subp>agraph 7,,gg71 by /rik+ ! p]iod at 
! end ( subp>agraph 7,,hh71 & by ins]t+ 
aft] subp>agraph 7,,hh7 ! foll[+ new    
subp>agraphs3  7,,ii7 section           
#fjde;,c7c7 7relat+ to returns reg>d+   
,unit$ ,/ates b5eficial own]s ( f9ancial
 acc\nts locat$ 9 ! ,unit$ ,/ates & held
 9 ! "n ( a =eign entity71 or  7,,jj7   
section #fjde;,d7c7 7relat+ to returns  
by f9ancial in/itutions reg>d+          
e/abli%m5t ( acc\nts at non-,,fatca     
in/itutions74  4  7c7 ,cl]ical am5dm5t  
,! table ( sections = subp>t ,b ( "p    

,,iii ( sub*apt] ,a ( *apt] #fa is am5d$
 by ins]t+ aft] ! item relat+ to section
 #fjde;,b ! foll[+ new items3  ,sec4    
#fjde;,c4 ,returns reg>d+ ,unit$ ,/ates 
b5eficial own]s ( f9ancial acc\nts      
locat$ 9 ! ,unit$ ,/ates & held 9 ! "n (
 a =eign entity4 ,sec4 #fjde;,d4        
,returns by f9ancial in/itutions reg>d+ 
e/abli%m5t ( acc\nts at non-,,fatca     
in/itutions4  4  7d7 ,additional        
p5alties  7#a7 ,additional p5alties on  
banks ,section #ebci7;b77#a7 ( ! ,revis$
 ,/atutes ( ! ,unit$ ,/ates 7#ab        
,u4,s4,c4 #ic7;b77#a77 is am5d$ by      
ins]t+ or any ( ! provisions ( section  
#fjde;,d ( ! ,int]nal ,rev5ue ,code (   
#aihf1 aft] any regulation issu$        
pursuant to14  7#b7 ,additional p5alties
 on securities firms ,section           
#ba7;d77#c77;,a7 ( ! ,securities        
,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4    
#ghu7d77#c77;,a77 is am5d$ by ins]t+ any
 ( ! provisions ( section #fjde;,d ( !  
,int]nal ,rev5ue ,code ( #aihf1 aft] !  
rules or regulations !reund]14  7e7     

,regulatory au?ority & effective date   
7#a7 ,regulatory ,au?ority ,n lat] ?an  
#ahj days aft] ! date ( ! enactm5t ( ?is
 ,act1 ! ,secret>y ( ! ,treasury %all   
adopt regulations1 =ms1 or o!r guidance 
necess>y to implem5t ?is section4  7#b7 
,effective ,date ,section #fjde;,c ( !  
,int]nal ,rev5ue ,code ( #aihf 7z add$  
by ?is section7 & ! am5dm5t made by     
subsection 7d77#a7 %all take effect )   
respect to am\nts paid into =eign own$  
acc\nts locat$ 9 ! ,unit$ ,/ates aft]   
,decemb] #ca ( ! ye> ( ! date ( !       
enactm5t ( ?is ,act4 ,section #fjde;,d (
 su* ,code 7z s add$7 & ! am5dm5t made  
by subsection 7d77#b7 %all take effect )
 respect to acc\nts op5$ aft] ,decemb]  
#ca ( ! ye> ( ! date ( ! enactm5t ( ?is 
,act4  #bjd4 ,p5alty = fail+ to disclose
 (f%ore hold+s  7a7 ,securities ,ex*ange
 ,act ( #aicd ,section #ba7;d77#c77;,b7 
( ! ,securities ,ex*ange ,act ( #aicd   
7#ae ,u4,s4,c4 #ghu7d77#c77;,b77 is     
am5d$ by add+ at ! end ! foll[+3  7iv7  
,f\r? ti] ,not)/&+ clauses 7i71 7ii71 & 

7iii71 = ea* violation1 ! am\nt ( !     
p5alty %all n exce$ #a1jjj1jjj = any    
natural p]son or #aj1jjj1jjj = any o!r  
p]son1 if--  7,i7 su* p]son directly or 
indirectly controll$ any =eign entity1  
includ+ any tru/1 corporation1 limit$   
liability company1 p>tn]%ip1 or         
f\ndation ?r\gh :i* an issu] pur*as$1   
sold1 or held equity or debt in/rum5ts2 
7,,ii7 su* p]son kn[+ly or recklessly   
fail$ to disclose any su* hold+1        
pur*ase1 or sale by ! issu]2 &  7,,iii7 
! hold+1 pur*ase1 or sale w\ld h be5    
o!rwise subject to disclosure by ! issu]
 or su* p]son "u ?is title4  4  7b7     
,securities ,act ( #aicc ,section       
#bj7;d77#b7 ( ! ,securities ,act ( #aicc
 7#ae ,u4,s4,c4 #ggt7d77#b77 is am5d$ by
 add+ at ! end ! foll[+3  7,d7 ,f\r? ti]
 ,not)/&+ subp>agraphs 7,a71 7,b71 &    
7,c71 = ea* violation1 ! am\nt ( !      
p5alty %all n exce$ #a1jjj1jjj = any    
natural p]son or #aj1jjj1jjj = any o!r  
p]son1 if--  7i7 su* p]son directly or  
indirectly controll$ any =eign entity1  

includ+ any tru/1 corporation1 limit$   
liability company1 p>tn]%ip1 or         
f\ndation ?r\gh :i* an issu] pur*as$1   
sold1 or held equity or debt in/rum5ts2 
7ii7 su* p]son kn[+ly or recklessly     
fail$ to disclose any su* hold+1        
pur*ase1 or sale by ! issu]2 &  7iii7 ! 
hold+1 pur*ase1 or sale w\ld h be5      
o!rwise subject to disclosure by ! issu]
 or su* p]son "u ?is title4  4  7c7     
,inve/m5t ,advis]s ,act ( #aidj ,section
 #bjc7;i77#b7 ( ! ,inve/m5t ,advis]s    
,act ( #aidj 7#ae ,u4,s4,c4             
#hj;b-#c7;i77#b77 is am5d$ by add+ at ! 
end ! foll[+3  7,d7 ,f\r? ti] ,not)/&+  
subp>agraphs 7,a71 7,b71 & 7,c71 = ea*  
violation1 ! am\nt ( ! p5alty %all n    
exce$ #a1jjj1jjj = any natural p]son or 
#aj1jjj1jjj = any o!r p]son1 if--  7i7  
su* p]son directly or indirectly        
controll$ any =eign entity1 includ+ any 
tru/1 corporation1 limit$ liability     
company1 p>tn]%ip1 or f\ndation ?r\gh   
:i* an issu] pur*as$1 sold1 or held     
equity or debt in/rum5ts2  7ii7 su*     

p]son kn[+ly or recklessly fail$ to     
disclose any su* hold+1 pur*ase1 or sale
 by ! issu]2 &  7iii7 ! hold+1 pur*ase1 
or sale w\ld h be5 o!rwise subject to   
disclosure by ! issu] or su* p]son "u   
?is title4  4  #bje4 ,deadl9e =         
anti-money laund]+ rule = inve/m5t      
advis]s  7a7 ,anti-,money laund]+       
obligations = inve/m5t advis]s ,section 
#ecab7;a77#b7 ( title #ca1 ,unit$ ,/ates
 ,code1 is am5d$-- 7#a7 9 subp>agraph   
7,y71 by /rik+ or at ! end2  7#b7 by    
r$esignat+ subp>agraph 7,z7 z           
subp>agraph 7,,bb72 &  7#c7 by ins]t+   
aft] subp>agraph 7,y7 ! foll[+3  7,z7 an
 inve/m5t advis]2  4  7b7 ,rules requir$
 ,! ,secret>y ( ! ,treasury %all--  7#a7
 9 consultation ) ! ,*airman ( !        
,securities & ,ex*ange ,commission & !  
,*airman ( ! ,commodity ,futures ,trad+ 
,commission1 n lat] ?an #ahj days aft] !
 date ( enactm5t ( ?is ,act1 publi% a   
propos$ rule 9 ! ,f$]al ,regi/] to c>ry 
out ! am5dm5ts made by ?is section2 &   
7#b7 n lat] ?an #bgj days aft] ! date ( 

enactm5t ( ?is ,act1 publi% a f9al rule 
9 ! ,f$]al ,regi/] on ! matt] describ$ 9
 p>agraph 7#a74  7c7 ,cont5ts ,! f9al   
rule publi%$ "u ?is section %all        
require1 at a m9imum1 ea* inve/m5t      
advis] 7z def9$ 9 section #bjb7;a77#aa7 
( ! ,inve/m5t ,advis]s ,act ( #aidj 7#ae
 ,u4,s4,c4 #hj;b-#b7;a77#aa777 regi/]$ )
 ! ,securities & ,ex*ange ,commission   
pursuant to section #bjc ( t ,act 7#ae  
,u4,s4,c4 #hj;b-#c7--  7#a7 to submit   
suspici\s activity reports & e/abli% an 
anti-money laund]+ program "u           
subsections 7g7 & 7h71 respectively1 (  
section #ecah ( title #ca1 ,unit$ ,/ates
 ,code2 &  7#b7 to comply )-- 7,a7 !    
cu/om] id5tification program requirem5ts
 "u section #ecah7l7 ( title #ca1 ,unit$
 ,/ates ,code2 &  7,b7 ! due dilig5ce   
requirem5ts "u section #ecah7;i7 ( title
 #ca1 ,unit$ ,/ates ,code4  #bjf4       
,anti-money laund]+ requirem5ts =       
=mation ag5ts  7a7 ,anti-,money laund]+ 
obligations = =mation ag5ts ,section    
#ecab7;a77#b7 ( title #ca1 ,unit$ ,/ates

 ,code1 z am5d$ by section #bjc ( ?is   
,act1 is am5d$ by ins]t+ aft]           
subp>agraph 7,z7 ! foll[+3  7,,aa7 any  
p]son engag$ 9 ! bus9ess ( =m+ new      
corporations1 limit$ liability          
companies1 p>tn]%ips1 tru/s1 or o!r     
legal entities2 or  4  7b7 ,deadl9e =   
anti-,money laund]+ rule = =mation ag5ts
  7#a7 ,propos$ rule ,! ,secret>y ( !   
,treasury1 9 consultation ) ! ,attorney 
,g5]al ( ! ,unit$ ,/ates1 ! ,secret>y ( 
,homel& ,security1 & ! ,commission] (   
,int]nal ,rev5ue1 %all--  7,a7 n lat]   
?an #abj days aft] ! date ( enactm5t (  
?is ,act1 publi% a propos$ rule 9 !     
,f$]al ,regi/] requir+ p]sons describ$ 9
 section #ecab7;a77#b77;,,aa7 ( title   
#ca1 ,unit$ ,/ates ,code1 z add$ by ?is 
section1 to e/abli% anti-money laund]+  
programs "u section #ecah7;h7 ( t title2
 &  7,b7 n lat] ?an #bgj days aft] !    
date ( enactm5t ( ?is ,act1 publi% a    
f9al rule 9 ! ,f$]al ,regi/] on ! matt] 
describ$ 9 subp>agraph 7,a74  7#b7      
,exclusions ,! rule promulgat$ "u ?is   

subsection %all exclude f ! category (  
p]sons engag$ 9 ! bus9ess ( =m+ new     
corporations or o!r entities--  7,a7 any
 gov]nm5t ag5cy2 &  7,b7 any attorney or
 law firm t uses a paid =mation ag5t    
op]at+ )9 ! ,unit$ ,/ates to =m su*     
corporations or o!r entities4  #bjg4    
,/r5g!n+ ,john ,doe summons proce$+s    
7a7 ,9 g5]al ,subsection 7f7 ( section  
#gfji is am5d$ to read z foll[s3  7f7   
,additional requirem5t 9 ! case ( a     
,john ,doe summons  7#a7 ,g5]al ,rule   
,any summons describ$ 9 subsection      
7c77#a7 :i* does n id5tify ! p]son )    
respect to ^: liability ! summons is    
issu$ may be s]v$ only aft] a c\rt      
proce$+ 9 :i* ! ,secret>y e/abli%es t-- 
7,a7 ! summons relates to ! inve/igation
 ( a p>ticul> p]son or asc]ta9able gr\p 
or class ( p]sons1  7,b7 !re is a       
reasonable basis = believ+ t su* p]son  
or gr\p or class ( p]sons may fail or   
may h fail$ to comply ) any provision ( 
any int]nal rev5ue law1 &  7,c7 !       
in=mation s\ght to be obta9$ f !        

exam9ation ( ! records or te/imony 7& ! 
id5tity ( ! p]son or p]sons ) respect to
 ^: liability ! summons is issu$7 is n  
readily available f o!r s\rces4  7#b7   
,exception ,p>agraph 7#a7 %all n apply  
to any summons :i* specifies t x is     
limit$ to in=mation reg>d+ a ,unit$     
,/ates correspond5t acc\nt 7z def9$ 9   
section #ecah;,a7e77#a77;,b7 ( title    
#ca1 ,unit$ ,/ates ,code7 or a ,unit$   
,/ates payable-?r\gh acc\nt 7z def9$ 9  
section #ecah;,a7e77#a77;,c7 ( su*      
title7 ( a f9ancial in/itution t is held
 at a non-,,fatca in/itution 7z def9$ 9 
section #ggja7;a77#ea774  7#c7          
,presumption 9 cases involv+ non-fatca  
in/itutions ,= purposes ( ?is section1 9
 any case 9 :i* ! p>ticul> p]son or     
asc]ta9able gr\p or class ( p]sons h    
f9ancial acc\nts 9 or transactions      
relat$ to a non-,,fatca in/itution 7z   
def9$ 9 section #ggja7;a77#ea771 !re    
%all be a presumption t !re is a        
reasonable basis = believ+ t su* p]son  
or gr\p or class ( p]sons may fail or   

may h fail$ to comply ) provisions (    
int]nal rev5ue law4  7#d7 ,project ,john
 ,doe summonses  7,a7 ,9 g5]al ,not)/&+ 
! requirem5ts ( p>agraph 7#a71 !        
,secret>y may issue a summons describ$ 9
 p>agraph 7#a7 if ! summons--  7i7      
relates to a project :i* is approv$ "u  
subp>agraph 7,b71  7ii7 is issu$ to a   
p]son :o is a memb] ( ! gr\p or class   
e/abli%$ "u subp>agraph 7,b77i71 &      
7iii7 is issu$ )9 #c ye>s ( ! date on   
:i* su* project 0 approv$ "u subp>agraph
 7,b74  7,b7 ,approval ( projects ,a    
project may only be approv$ "u ?is      
subp>agraph aft] a c\rt proce$+ 9 :i* ! 
,secret>y e/abli%es t--  7i7 any summons
 issu$ ) respect to ! project w be issu$
 to a memb] ( an asc]ta9able gr\p or    
class ( p]sons1 &  7ii7 any summons     
issu$ ) respect to su* project w meet ! 
requirem5ts ( p>agraph 7#a74  7,c7      
,ext5sion ,^u application ( ! ,secret>y1
 ! c\rt may ext5d ! "t = issu+ su*      
summonses "u subp>agraph 7,a77i7 =      
additional #c-ye> p]iods1 b only if !   

c\rt cont9ues to ex]cise ov]sight ( su* 
project "u subp>agraph 7,d74  7,d7      
,ongo+ c\rt ov]sight ,dur+ any p]iod 9  
:i* ! ,secret>y is au?oriz$ to issue    
summonses 9 relation to a project       
approv$ "u subp>agraph 7,b7 7includ+    
dur+ any ext5sion "u subp>agraph 7,c771 
! ,secret>y %all report annually to !   
c\rt on ! use ( su* au?ority1 provide   
copies ( all summonses ) su* report1 &  
comply ) ! c\rt's direction ) respect to
 ! issuance ( any ,john ,doe summons "u 
su* project4  4  7b7 ,jurisdiction (    
c\rt  7#a7 ,9 g5]al ,p>agraph 7#a7 (    
section #gfji7;h7 is am5d$ by ins]t+    
aft] ! fir/ s5t5ce ! foll[+ new s5t5ce3 
,any ,unit$ ,/ates di/rict c\rt 9 :i* a 
memb] ( ! gr\p or class to :i* a summons
 may be issu$ resides or is f\nd %all h 
jurisdiction to he> & det]m9e ! approval
 ( a project "u subsection              
7f77#d77;,b744  7#b7 ,con=m+ am5dm5t ,! 
fir/ s5t5ce ( section #gfji7;h77#a7 is  
am5d$ by /rik+ 7f7 & ins]t+ 7f77#a74    
7c7 ,effective date ,! am5dm5ts made by 

?is section %all apply to summonses     
issu$ aft] ! date ( ! enactm5t ( ?is    
,act4  #bjh4 ,improv+ en=cem5t ( =eign  
f9ancial acc\nt report+  7a7 ,cl>ify+ ! 
connection ( =eign f9ancial acc\nt      
report+ to tax adm9i/ration ,p>agraph   
7#d7 ( section #fajc7;b7 is am5d$ by    
add+ at ! end ! foll[+ new s5t5ce3 ,=   
purposes ( subp>agraph 7,a77i71 section 
#ecad ( title #ca1 ,unit$ ,/ates ,code1 
& sections #ecba & #ecbb ( su* title 7z 
su* sections p]ta9 to su* section       
#ecad71 %all be consid]$ relat$ /atutes4
 4  7b7 ,simplify+ ! calculation ( =eign
 f9ancial acc\nt report+ p5alties       
,section #ecba7;a77#e77;,d77ii7 ( title 
#ca1 ,unit$ ,/ates ,code1 is am5d$ by   
/rik+ ! balance 9 ! acc\nt at ! "t ( !  
violation & ins]t+ ! highe/ balance 9 ! 
acc\nt dur+ ! report+ p]iod to :i* !    
violation relates4  7c7 ,cl>ify+ ! use (
 suspici\s activity reports "u ! ,bank  
,secrecy ,act = civil tax law en=cem5t  
,section #ecai ( title #ca1 ,unit$      
,/ates ,code1 is am5d$ by ins]t+ ! civil

 & crim9al en=cem5t divisions ( !       
,int]nal ,rev5ue ,s]vice1 aft] includ+4