,i  #aag? ,,congress  #b;d ,session  ,h4
 ,r4 #heeh  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,july #bh1 #bjbb,mr4  
,coh5 7= himself1 ,mr4 ,bey]1 ,mr4      
,c>son1 ,ms4 ,de,lauro1 ,mr4 ,evans1    
,mr4 ,fo/]1 ,mr4 ,g>ca ( ,ill9ois1 ,mr4 
,grijalva1 ,mr4 ,jones1 ,ms4 ,lee (     
,cali=nia1 ,ms4 ,mc,collum1 ,ms4        
,newman1 ,mr4 ,de,fazio1 ,mr4 ,nadl]1   
,ms4 ,s*ak[sky1 ,ms4 ,b>ragn1 ,mr4      
,gomez1 ,ms4 ,norton1 ,ms4 ,port]1 ,ms4 
,tlaib1 ,mrs4 ,watson ,coleman1 ,mr4    
,wel*1 ,mr4 ,g>am5di1 ,mr4 ,danny ,k4   
,davis ( ,ill9ois1 ,mr4 ,y>mu?1 ,mr4    
,mc,govern1 ,ms4 ,cl>ke ( ,new ,york1   
,mr4 ,br5dan ,f4 ,boyle ( ,p5nsylvania1 
,ms4 ,plaskett1 ,mr4 ,takano1 ,mr4      
,m\lton1 ,mrs4 ,c>olyn ,b4 ,maloney (   
,new ,york1 & ,mr4 ,de,saulnier7        
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,ways & ,means  ,a     
,,bill  ,to am5d ! ,int]nal ,rev5ue     
,code ( #aihf to impose a m9imum tax on 
c]ta9 weal?y taxpay]s t takes into      
acc\nt unrealiz$ ga9s4  #a4 ,%ort title 

,?is ,act may be cit$ z ! ,billionaire  
,m9imum ,income ,tax ,act4  #b4 ,m9imum 
tax on c]ta9 weal?y taxpay]s  7a7 ,9    
g5]al ,subtitle ,a ( ! ,int]nal ,rev5ue 
,code ( #aihf is am5d$ by ins]t+ aft]   
*apt] #d ! foll[+ new *apt]3  #e ,m9imum
 tax on c]ta9 weal?y taxpay]s  ,sec4    
#adha4 ,m9imum tax on c]ta9 weal?y      
taxpay]s4,sec4 #adhb4 ,c]ta9 o!rwise    
exempt transf]s by c]ta9 weal?y taxpay]s
 treat$ z taxable4  #adha4 ,m9imum tax  
on c]ta9 weal?y taxpay]s  7a7 ,9 g5]al  
,9 ! case ( an applicable taxpay]1 !re  
is h]eby impos$ 79 addition to any o!r  
tax impos$ by ?is subtitle7 = ea*       
taxable ye> a tax equal to ! excess 7if 
any7 (-- 7#a7 #bj p]c5t ( ! sum (-- 7,a7
 ! taxpay]'s taxable income = su*       
taxable ye>1 plus  7,b7 ! taxpay]'s net 
unrealiz$ ga9 = su* taxable ye>1 ov]    
7#b7 ! sum (-- 7,a7 ! taxpay]'s m9imum  
tax acc\nt balance = su* taxable ye>1   
plus  7,b7 ! taxpay]'s regul> tax       
liability 7z def9$ 9 section #bf7;b77 = 
su* taxable ye>4  7b7 ,limitation on    

m9imum tax ,! tax impos$ "u subsection  
7a7 ) respect to any applicable taxpay] 
7o!r ?an an applicable taxpay] describ$ 
9 subsection 7c77#a77;,b77 = any taxable
 ye> %all n exce$ #dj p]c5t ( ! excess  
describ$ 9 subsection 7c77#a77;,a7 )    
respect to su* taxpay] = su* taxable    
ye>4  7c7 ,applicable taxpay] ,=        
purposes ( ?is section-- 7#a7 ,9 g5]al  
,! t]m applicable taxpay] means-- 7,a7  
any individual = any taxable ye> if !   
taxpay]'s net wor? = su* taxable ye>    
exce$s #ajj1jjj1jjj 7half su* am\nt 9 ! 
case ( a m>ri$ individual fil+ a sep>ate
 return71 &  7,b7 any tru/ or e/ate     
treat$ z an applicable taxpay] "u       
subsection 7g74  7#b7 ,net wor? ,! t]m  
net wor? means1 ) respect to any taxpay]
 = any taxable ye>1 ! excess 7if any71  
det]m9$ z ( ! close ( su* taxable ye>1  
(-- 7,a7 ! e/imat$ value ( all assets ( 
! taxpay] & all tru/ attribut$ assets ( 
! taxpay]1 z det]m9$ "u regulations     
provid$ by ! ,secret>y1 ov]  7,b7 all   
debts 7& su* o!r liabilities z !        

,secret>y may provide7 ( ! taxpay] & all
 tru/ attribut$ debts ( ! taxpay]4  7#c7
 ,tru/ attribut$ assets ,! t]m tru/     
attribut$ assets means1 ) respect to any
 taxpay]-- 7,a7 any asset ( a tru/ :i*  
su* taxpay] is treat$ z own+ "u subp>t  
,e ( "p ,i ( sub*apt] ,j ( *apt] #a1 &  
7,b7 any asset ( a tru/ 7o!r ?an a tru/ 
:i* a p]son o!r ?an ! taxpay] is treat$ 
z own+ "u su* subp>t7 t is di/ributable 
to ! taxpay] or f :i* income is         
di/ributable to ! taxpay] 9 :ole or 9   
"p1 :e!r or n ! taxpay]'s di/ribution   
rights are subject to a cont+5cy1 unless
 t cont+5cy is ! dea? ( ano!r tru/      
b5efici>y4  7#d7 ,tru/ attribut$ debts  
,! t]m tru/ attribut$ debts means1 )    
respect to any taxpay]-- 7,a7 any debt  
7& su* o!r liabilities z ! ,secret>y may
 provide7 ( a tru/ describ$ 9 p>agraph  
7#c77;,a71 &  7,b7 any debt 7& su* o!r  
liabilities z ! ,secret>y may provide7 )
 respect to an asset describ$ 9 p>agraph
 7#c77;,b7 if ! hold]s ( su* debt h a "r
 to repaym5t :i* is s5ior to !          

di/ribution rights ( ! taxpay]4  7#e7   
,gratuit\s transf]s  7,a7 ,9 g5]al ,9 ! 
case ( any asset :i* 0 transf]r$ by !   
taxpay] dur+ ! #e-ye> p]iod end+ ) !    
close ( ! taxable ye> = :i* ! taxpay]'s 
net wor? is det]m9$ 7& :i* is n o!rwise 
tak5 into acc\nt 9 det]m9+ su* net      
wor?71 su* taxpay]'s net wor? 7z det]m9$
 = purposes ( ?is section7 %all be-- 7i7
 increas$ by ! value ( su* transf]r$    
asset at ! "t ( transf]1  7ii7 decreas$ 
7b n 9 excess ( ! am\nt ( ! increase "u 
clause 7i77 by ! am\nt paid 9           
consid]ation = su* asset by ! transf]ee1
  7iii7 9 ! case ( any decrease "u      
clause 7ii71 increas$ to ! ext5t ( any  
liability ( ! transf]ee to ! transf]or  
or relat$ p>ty 7z def9$ "u section      
#bfg7;b77 ( ! transf]or1 incurr$ 9      
connection ) ! transf] ( su* asset1 to !
 ext5t t ! "r to collect su* liability  
is n already reflect$ 9 ! net weal? ( ! 
transf]or1 &  7iv7 increas$ by ! value (
 any su* transf]r$ asset transf]r$ ) a  
purpose t 0 9 sub/antial "p to avoid    

tax1 to ! ext5t n already includ$ z an  
increase "u clause 7i7 or 7iii74  7,b7  
,exceptions ,subp>agraph 7,a7 %all n    
apply ) respect to any transf] ( an     
asset to-- 7i7 an organization describ$ 
9 section #agj7;c71  7ii7 a sp\se or =m]
 sp\se if section #ajda applies to su*  
transf]1 or  7iii7 a sp\se if bo? sp\ses
 are applicable taxpay]s at ! "t ( su*  
transf]4  7,c7 ,special rule reg>d+     
transf] to avoid tax ,= purposes (      
subp>agraph 7,a77iv71 if "o or m        
transf]s ( assets w\ld 7b = ?is s5t5ce7 
r$uce ! tax impos$ "u ?is section & !   
taxpay] reta9s a sub/antial degree (    
control ov] su* assets1 ! purpose ( su* 
transf]s %all be treat$ z avoidance (   
tax unless ! taxpay] %[s o!rwise by cle>
 & conv9c+ evid5ce4  7d7 ,m9imum tax    
acc\nt balance ,= purposes ( ?is        
section1 ! t]m m9imum tax acc\nt balance
 means1 ) respect to any taxpay] = any  
taxable ye>1 ! excess 7if any7 (-- 7#a7 
! aggregate am\nt ( tax impos$ "u ?is   
section ) respect to ! taxpay] = all    

prior taxable ye>s1 ov]  7#b7 ! sum (-- 
7,a7 ! aggregate cr$its all[$ "u        
sections #be;,e & #cf;,c ) respect to ! 
taxpay] = all prior taxable ye>s1 &     
7,b7 ! aggregate r$uctions describ$ 9   
subsection 7h77#f7 ) respect to !       
taxpay] = all prior taxable ye>s4  7e7  
,net unrealiz$ ga9  7#a7 ,9 g5]al ,=    
purposes ( ?is section1 ! t]m net       
unrealiz$ ga9 means1 ) respect to any   
taxpay] = any taxable ye>1 ! excess 7if 
any7 (-- 7,a7 ! aggregate ga9s :i* w\ld 
be recogniz$ if su* taxpay] sold ea*    
asset held at ! close ( su* taxable ye> 
7includ+ any asset describ$ 9 subsection
 7c77#c77;,a77 = su* asset's e/imat$    
value at su* "t1 ov]  7,b7 ! aggregate  
losses :i* w\ld be s recogniz$4  7#b7   
,e/imat$ value ,= purposes ( ?is        
section-- 7,a7 ,9 g5]al ,except z       
o!rwise provid$ 9 ?is subsection1 ! t]m 
e/imat$ value means fair m>ket value    
det]m9$ 9 su* mann] z ! ,secret>y may   
provide4  7,b7 ,non-readily tradable    
assets  7i7 ,default me?od ,9 ! abs5ce (

 regulations or o!r guidance "u clause  
7iii7 or 7iv7 7& only 9 su* abs5ce71 !  
e/imat$ value ( a non-readily tradable  
asset %all be det]m9$ by beg9n+ ) !     
greate/ 7det]m9$ aft] adju/m5t "u clause
 7ii77 (-- 7,i7 ! orig9al basis am\nt1  
7,,ii7 ! adju/$ co/ basis am\nt1 or     
7,,iii7 ! mo/ rec5t fair m>ket valuation
 am\nt4  7ii7 ,adju/m5t = deem$         
appreciation ,ea* am\nt describ$ 9      
subclauses 7,i71 7,,ii71 & 7,,iii7 (    
clause 7i7 %all be sep>ately increas$ by
 a rate ( appreciation equal to ! sum   
(-- 7,i7 ! annual rate ( int]e/ det]m9$ 
by ! ,secret>y to be equival5t to !     
av]age ( ! #e-ye> con/ant maturity      
,treasury yields1 z publi%$ by ! ,bo>d (
 ,gov]nors ( ! ,f$]al ,res]ve ,sy/em1 = 
! #e-ye> p]iod end+ on ,septemb] #cj ( !
 cal5d> ye> end+ be=e ! date ) respect  
to :i* ! e/imat$ value is det]m9$1 plus 
7,,ii7 #b p]c5tage po9ts1  = ! p]iod    
beg9n+ on ! date ) respect to :i* su*   
am\nt relates & end+ on ! date ) respect
 to :i* ! e/imat$ value is det]m9$4     

7iii7 ,regulations ,9 ! case ( any      
non-readily tradable asset1 ! e/imat$   
value ( su* asset %all be det]m9$ by su*
 me?od z ! ,secret>y may prescribe 9    
regulations or o!r guidance4 ,su* me?od 
may require a s+le valuation me?od )    
respect to any su* asset or may provide 
"o or m options = valu+ any su* asset & 
may 7b is n requir$ to7 include "o or m 
( ! foll[+3 7,i7 ,requir$ =mulaic       
valuations bas$ on any ( ! orig9al basis
 am\nt 7gross$ up by a =mula71 o!r      
adju/$ co/ basis am\nts 7pot5tially     
adju/$ by a =mula71 mo/ rec5t fair m>ket
 valuation am\nt 7gross$ up by a =mula71
 or =mulaic multiple ( book value or o!r
 f9ancial /atem5t valuation4  7,,ii7    
,any valuation me?od utiliz$ ) respect  
to illiquid taxpay]s "u subsection 7f71 
includ+ any me?od "u ! special valuation
 regime & ! rule t a valuation may be   
*all5g$ by ! taxpay] only ^u a %[+ (    
cle> & conv9c+ error4  7iv7 ,c]ta9      
requir$ applications ( illiquid taxpay] 
rules ,! ,secret>y may issue regulations

 or o!r guidance :i* require c]ta9      
taxpay]s :i* hold "o or m non-readily   
tradable assets to apply "o or m ( !    
rules applicable to illiquid taxpay]s "u
 p>agraph 7#d7 & subsection 7h7 7)\t    
reg>d to :e!r ! taxpay] makes ! election
 describ$ 9 p>agraph 7#d7 or any        
election "u subsection 7h77 ) respect to
 all or any portion ( su* assets4 ,!    
,secret>y may require calculation &     
paym5t ( e/imat$ annual taxes on su*    
assets to ! ext5t t ! ,secret>y det]m9es
 t do+ s w\ld be/ advance ! goal (      
m9imiz+ gam+ by taxpay]s4  7v7          
,recapture ( depreciation & amortization
 p]mitt$ ,no?+ 9 ?is subsection %all be 
con/ru$ to prev5t ! det]m9ation ( ga9s &
 losses = purposes ( ?is subsection )   
respect to any asset on ! basis ( !     
adju/$ basis ( su* asset 7aft] tak+ into
 acc\nt any r$uctions 9 su* basis =     
depreciation or amortization74  7#c7    
,non-readily tradable asset ,= purposes 
( ?is section1 ! t]m non-readily        
tradable asset means any asset :i* is "p

 ( any class ( assets ) respect to :i* !
 ,secret>y has det]m9$ t m&atory annual 
valuations are inappropriate = purposes 
( ?is section4  7#d7 ,illiquid taxpay]s 
7,a7 ,9 g5]al ,9 ! case ( an illiquid   
taxpay] :i* makes ! election describ$ 9 
subp>agraph 7,b7-- 7i7 ! net unrealiz$  
ga9 ( su* taxpay] %all be det]m9$ by    
only tak+ into acc\nt ! unrealiz$ ga9s  
7& losses7 on assets o!r ?an non-readily
 tradable assets1 &  7ii7 su* taxpay]   
%all be subject to ! requirem5ts (      
subsection 7f7 ) respect to all         
non-readily tradable assets held by !   
taxpay]4  7,b7 ,illiquid taxpay] ,=     
purposes ( ?is subsection1 ! t]m        
illiquid taxpay] means any taxpay] = any
 taxable ye> if ! e/imat$ value ( all   
assets o!r ?an non-readily tradable     
assets ( ! taxpay] z ( ! close ( su*    
taxable ye> does n exce$ #bj p]c5t ( !  
taxpay]'s net wor? = su* taxable ye>4   
7,c7 ,election ,any election made "u ?is
 p>agraph %all be made at su* "t & 9 su*
 mann] z ! ,secret>y may provide &1 once

 made ) respect to any asset1 may be    
revok$ only ) ! cons5t ( ! ,secret>y 7& 
subject to su* requirem5ts z ! ,secret>y
 may provide to ensure prop] taxation ( 
ga9s & losses ) respect to su* assets74 
,if ! ,secret>y det]m9es t x is consi/5t
 ) ! purposes ( ?is section1 ! ,secret>y
 may p]mit an illiquid taxpay] to elect 
to apply ?is p>agraph 7& subsection 7f77
 ) respect to su* portion ( non-readily 
tradable assets ( ! taxpay] z !         
,secret>y det]m9es is consi/5t ) su*    
purposes4  7f7 ,unliquidat$ ,tax ,res]ve
 ,acc\nts  7#a7 ,9 g5]al ,! ,secret>y   
%all issue regulations or o!r guidance  
"u :i*1 9 ! case ( any taxpay] subject  
to ! requirem5ts ( ?is subsection       
7includ+ by reason ( subsection         
7e77#b77;,b77iv7 or 7e77#d7 or p>agraph 
7#b77,k7 ( ?is subsection71 ! taxpay]'s 
tax liability "u ?is section1 & ! tim+ (
 any su* liability1 ) respect to any    
non-readily tradable assets held by su* 
taxpay] are det]m9$ on ! basis ( !      
,unliquidat$ ,tax ,res]ve ,acc\nt rules 

prescrib$ by ! ,secret>y "u ?is         
subsection4  7#b7 ,unliquidat$ ,tax     
,res]ve ,acc\nt rules ,! ,unliquidat$   
,tax ,res]ve ,acc\nt rules prescrib$ by 
! ,secret>y "u ?is subsection %all1     
except z o!rwise provid$ by ! ,secret>y1
 be consi/5t ) ! foll[+3 7,a7 ,any      
taxpay] subject to ?is subsection %all  
be treat$ z hav+ an ,unliquidat$ ,tax   
,res]ve ,acc\nt 7h]eaft] 9 ?is          
subsection ref]r$ to z an ,,ultra7 :i*  
consi/s ( ! non-readily tradable assets 
held by su* taxpay] 7or1 z ! case may   
be1 to ! portion ( su* assets describ$ 9
 subsection 7e77#b77;,b77iv7 or         
7e77#d77;,c77 7h]eaft] 9 ?is subsection 
ref]r$ to z ! ,,ultra assets74  7,b7    
,except z provid$ 9 subp>agraph 7,k7--  
7i7 9 ! case ( ! fir/ ye> 9 :i* a       
taxpay] becomes subject to ?is          
subsection & s has assets 9 ! ,,ultra1 !
 notional int]e/ p]c5tage ( ! ,,ultra   
%all be #bj p]c5t 7#j p]c5t 9 ! case ( a
 taxpay] :i* elects to recognize all    
unrealiz$ ga9s ( all assets 9 ! ,,ultra 

^u initiation ( ! ,,ultra71 &  7ii7 at !
 end ( ! fir/ ye> 9 :i* a taxpay]       
becomes subject to ?is subsection & s   
has assets 9 ! ,,ultra & at ! end ( ea* 
subsequ5t ye> dur+ :i* ! taxpay]        
cont9ues to be subject to ?is subsection
 & h assets 9 ! ,,ultra1 ! notional     
int]e/ p]c5tage ( ! ,,ultra %all be     
increas$ annually by an am\nt equal to !
 product (-- 7,i7 ! deem$ rate ( return 
multipli$ by #bj p]c5t1 multipli$ by    
7,,ii7 #a m9us ! notional int]e/        
p]c5tage imm$iately prior to ! increase4
  7,c7 ,! deem$ rate ( return = purposes
 ( subp>agraph 7,b77ii77,i7 %all be !   
e/imat$ inve/m5t rate ( return = !      
entire economy z det]m9$ by ! ,secret>y1
 or if ! ,secret>y provides t ! notional
 int]e/ p]c5tage %\ld be det]m9$        
sep>ately ) respect to any class (      
assets1 su* o!r rate ( return z !       
,secret>y det]m9es appropriate = su*    
asset class4  7,d7 ,any sale1 or o!r    
transf]1 ( any ,,ultra asset %all be    
treat$ z a di/ribution f ! ,,ultra1     

except t ! ,secret>y %all provide rules 
= treat+ transf]s made 9 ! ord9>y c\rse 
( a trade or bus9ess & ex*anges (       
non-readily tradable assets z o!r ?an   
di/ributions4  7,e7 ,except z o!rwise   
provid$ by ! ,secret>y1 an increase 9   
debt %all be treat$ z a di/ribution f ! 
,,ultra & any subsequ5t decrease 9 debt 
%all be tak5 into acc\nt z a r$uction 9 
di/ributions f ! ,,ultra or z a cr$it   
aga9/ tax 7z ! ,secret>y det]m9es       
appropriate74  7,f7 ,any di/ribution f !
 ,,ultra %all result 9 an increase 9 !  
taxable income ( ! taxpay] equal to !   
product ( ! e/imat$ value ( !           
di/ribution multipli$ by ! notional     
int]e/ p]c5tage at ! "t ( ! di/ribution4
  7,g7 ,a taxpay] may elect to pay      
liabilities "u ?is subsection 9 advance 
& prop] cr$it %all be provid$ = any su* 
liabilities s paid 9 advance ^u         
resolution ( ! ,,ultra4  7,h7 ,!        
,secret>y %all e/abli% a special        
valuation regime = purposes ( det]m9+ ! 
e/imat$ value ( any di/ribution ( a     

non-tradable asset f an ,,ultra4 ,su*   
special valuation regime %all ensure    
valuation accuracy1 m9imize ! pot5tial =
 "u-valuation1 & m9imize ! pot5tial =   
taxpay] gam+4 ,su* regime may include ! 
use ( apprais]s employ$ by ! ,secret>y1 
=mulaic valuations1 or any o!r me?od    
design$ to ensure valuation accuracy &  
m9imize ! pot5tial = gam+4 ,any e/imat$ 
value det]m9$ "u su* special valuation  
regime may be *all5g$ by ! taxpay] only 
^u a %[+ ( cle> & conv9c+ error4 ,9     
place ( ! /&>d due process safegu>ds1 a 
taxpay] may opt to reject su* special   
valuations 7"u rules & proc$ures to be  
det]m9$ by ! ,secret>y7 & in/ead ma9ta9 
! non-tradable asset )9 an ,,ultra4     
7,i7 ,if a taxpay] is subject to !      
requirem5ts ( ?is subsection ) respect  
to any assets1 su* taxpay] %all rema9   
subject to ! requirem5ts ( ?is          
subsection 7)\t reg>d to :e!r or n su*  
taxpay] ceases to be an applicable      
taxpay]7 until ! ,,ultra is resolv$ &   
all liabilities ) respect to su* ,,ultra

 h be5 paid4 ,= purposes ( ?is          
subsection1 an ,,ultra %all be treat$ z 
resolv$ ^u ! dea? ( ! taxpay]1 !        
di/ribution ( all assets ( ! ,,ultra1 a 
det]m9ation by ! ,secret>y t fur!r      
treatm5t z an ,,ultra is inconsi/5t ) ! 
purposes ( ?is section1 or a det]m9ation
 by ! ,secret>y describ$ 9 subp>agraph  
7,j74  7,j7 ,if ! ,secret>y det]m9es1 ^u
 application by ! taxpay]1 t !          
resolution ( an ,,ultra is n inconsi/5t 
) ! purposes ( ?is section-- 7i7 all    
rema9+ assets ( su* ,,ultra %all be     
treat$ z di/ribut$1 &  7ii7 su* ,,ultra 
%all be treat$ z resolv$4  7,k7 ,^u !   
resolution ( ! ,,ultra1 !re %all be     
impos$ on ! taxpay] a tax 7or a refund (
 taxes previ\sly paid may be aw>d$7 z   
det]m9$ by ! ,secret>y by apply+ a      
retrospective =mula det]m9$ by !        
,secret>y to elim9ate ! entire tax      
advantage ( def]ral4 ,su* tax %all be   
det]m9$ 9 a mann] to take into acc\nt   
prior di/ributions f ! ,,ultra & any tax
 previ\sly impos$ !reon & any liability 

"u ?is subsection :i* is paid 9 advance 
"u subp>agraph 7,g74  7,l7 ,if1 ^u !    
dea? ( a taxpay]1 an heir ( ,,ultra     
assets elects to initiate a c>ry-ov]    
,,ultra = su* inh]it$ assets-- 7i7 su*  
assets %all n be tak5 into acc\nt "u    
subp>agraph 7,j7 ^u ! resolution ( !    
dec$5t's ,,ultra1  7ii7 su* heir's      
c>ry-ov] ,,ultra %all beg9 ) a notional 
int]e/ p]c5tage equal to t ( ! dec$5t's 
,,ultra at ! "t ( dea?1 &  7iii7 su*    
c>ry-ov] ,,ultra %all be ma9ta9$        
sep>ately f any ,,ultra o!rwise ma9ta9$ 
by su* heir4  7g7 ,treatm5t ( tru/s &   
e/ates z applicable taxpay]s ,= purposes
 ( ?is *apt]-- 7#a7 ,9 g5]al ,any tru/  
7o!r ?an a tru/ ! assets ( :i* are      
treat$ z own$ by ano!r taxpay] "u subp>t
 ,e ( "p ,i ( sub*apt] ,j ( *apt] #a7 or
 applicable e/ate %all be treat$ z an   
applicable taxpay] = purposes ( ?is     
*apt] if any assets ( ! tru/ are tru/   
attribut$ assets ) respect to any       
applicable taxpay]4  7#b7 ,applicable   
e/ate ,an e/ate is an applicable e/ate  

beg9n+ ) ! ?ird taxable ye> foll[+ !    
date ( dea? ( ! dec$5t if ! dec$5t 0 an 
applicable taxpay] = any taxable ye>    
end+ dur+ ! #e-ye> p]iod end+ on ! date 
( ! dec$5t's dea?4  7#c7 ,tru/s acquir+ 
,unit$ ,/ates b5efici>ies  7,a7 ,9 g5]al
 ,if p>agraph 7#a7 applies to a tru/ = a
 transf]or or b5efici>y's taxable ye>1 &
 p>agraph 7#a7 w\ld h appli$ to ! tru/ =
 any ( ! prec$+ #aj taxable ye>s 7o!r   
?an ye>s prior to ! effective date ( ?is
 section7 b = ! fact t 9 su* ye> or ye>s
 !re 0 no ,unit$ ,/ates b5efici>y = any 
portion ( ! tru/1 !n ! transf]or %all be
 treat$ z hav+ income = ! taxable ye>   
equal to-- 7i7 ! aggregate increases 9 !
 tax impos$ "u ?is title = ea* su* prior
 taxable ye> 7beg9n+ aft] ! date ( !    
enactm5t ( ?is *apt]7 :i* w\ld h occurr$
 if p>agraph 7#a7 _h appli$ to su* tru/ 
= su* ye>1 plus  7ii7 int]e/ on su*     
increase det]m9$ ) respect to ea* su*   
taxable ye> det]m9$ at ! und]paym5t     
rate4  7,b7 ,no liv+ transf]or ,9 ! ev5t
 t subp>agraph 7,a7 w\ld apply1 b = !   

fact t !re is no liv+ transf]or1 !n ea* 
b5efici>y ( su* tru/1 o!r ?an a cont+5t 
b5efici>y1 %all be treat$ z hav+ income 
= ! taxable ye> equal to-- 7i7 !        
aggregate increases 9 ! tax impos$ "u   
?is title = ea* su* prior taxable ye>   
7beg9n+ aft] ! date ( ! enactm5t ( ?is  
*apt]7 :i* w\ld h occurr$ if p>agraph   
7#a7 _h appli$ to su* tru/1 b only to ! 
ext5t ( su* increases 9 tax :i* w\ld h  
occurr$ ) respect to su* portion ( tru/ 
assets z are di/ributable to !          
b5efici>y1 or su* portion ( tru/ income 
z is di/ributable to ! b5efici>y 7:e!r  
or n su* assets or income are s         
di/ribut$71 plus  7ii7 int]e/ on su*    
increase det]m9$ ) respect to ea* su*   
taxable ye> det]m9$ at ! und]paym5t     
rate4  7,c7 ,cont+5t b5efici>ies ,9 !   
ev5t t no tax is impos$ on a b5efici>y  
"u subp>agraph 7,b7 because su*         
b5efici>y is cont+5t1 !n 9 ! fir/       
taxable ye> 9 :i* su* b5efici>y is no   
long] cont+5t1 su* b5efici>y %all be    
treat$ z hav+ income = ! taxable ye>    

equal to ! am\nt t w\ld h be5 impos$ "u 
subp>agraph 7,b71 plus int]e/ on su*    
increase det]m9$ ) respect to ea* su*   
taxable ye> det]m9$ at ! und]paym5t     
rate1 b 9 no case w su* tax & int]e/ be 
impos$ ) respect to any portion ( tru/  
assets or income previ\sly subject to   
tax "u ?is section4  7,d7 ,cont+5t ,=   
purposes ( ?is p>agraph1 a b5efici>y's  
int]e/ 9 a tru/ %all be treat$ z cont+5t
 if 7& only if7 su* int]e/ dep5ds on !  
outcome ( unc]ta9 future ev5ts 7o!r ?an 
! discretion ( ! tru/ee to det]m9e !    
tim+ ( ! di/ribution ( income74  7h7    
,election ,to pay liability 9 in/allm5ts
  7#a7 ,9 g5]al ,a taxpay] may elect to 
pay ! tax impos$ "u subsection 7a7 or   
7g7 = any taxable ye> 9 #e equal annual 
in/allm5ts 79 ! case ( ! taxpay]'s fir/ 
taxable ye> beg9n+ 9 #bjbc1 #i equal    
annual in/allm5ts74  7#b7 ,date = paym5t
 ( in/allm5ts ,if an election is made "u
 p>agraph 7#a71 ! fir/ in/allm5t %all be
 paid on or be=e ! due date 7det]m9$ )\t
 reg>d to any ext5sion ( "t = fil+ !    

return7 = ! return ( tax = ! taxable ye>
 describ$ 9 subsection 7a7 & ea* succe$+
 in/allm5t %all be paid on or be=e ! due
 date 7z s det]m9$7 = ! return ( tax = !
 taxable ye> foll[+ ! taxable ye> )     
respect to :i* ! prec$+ in/allm5t 0     
made4  7#c7 ,accel]ation ( paym5t  7,a7 
,9 g5]al ,if !re is an addition to tax =
 failure to timely pay any in/allm5t    
requir$ "u ?is subsection 7o!r ?an by   
reason ( a timely election made "u      
p>agraph 7#e771 a bankruptcy ( ! taxpay]
 7includ+ 9 a title #aa or simil> case71
 or any simil> circum/ance1 !n ! unpaid 
portion ( all rema9+ in/allm5ts %all be 
due on ! date ( su* ev5t 7or 9 ! case ( 
a title #aa or simil> case1 ! day be=e !
 petition is fil$74  7,b7 ,paym5t )9 #f 
mon?s ,9 ! case ( ! paym5t ( any        
in/allm5t requir$ "u ?is subsection dur+
 ! #f-mon? p]iod beg9n+ on ! due date ( 
su* in/allm5t1 subp>agraph 7,a7 %all n  
apply & rules simil> to ! rules (       
section #faff7;g77#c77;,b7 %all apply4  
7#d7 ,proration ( defici5cy to          

in/allm5ts ,if an election is made "u   
p>agraph 7#a7 to pay tax impos$ "u      
subsection 7a7 9 in/allm5ts & a         
defici5cy has be5 assess$ ) respect to  
su* tax1 ! defici5cy %all be prorat$ to 
! in/allm5ts payable "u p>agraph 7#a74  
,! "p ( ! defici5cy s prorat$ to any    
in/allm5t ! date = paym5t ( :i* has n   
arriv$ %all be collect$ at ! same "t z1 
& z a "p (1 su* in/allm5t4 ,! "p ( !    
defici5cy s prorat$ to any in/allm5t !  
date = paym5t ( :i* has arriv$ %all be  
paid ^u notice & dem& f ! ,secret>y4    
,?is subsection %all n apply if !       
defici5cy is due to neglig5ce1 to       
int5tional disreg>d ( rules &           
regulations1 or to fraud ) int5t to     
evade tax4  7#e7 ,election ,any election
 "u p>agraph 7#a7 %all be made at su* "t
 & 9 su* mann] z ! ,secret>y %all       
provide4  7#f7 ,r$uction ( in/allm5t    
paym5ts to ext5t m9imum acc\nt balance  
is 9 excess ( expect$ recogniz$ ga9 ,if 
! m9imum acc\nt balance ( ! taxpay] =   
any taxable ye> 7r$uc$ by ! am\nt ( any 

cr$it all[$ "u section #be;,e = su*     
taxable ye>7 exce$s #bj p]c5t ( !       
taxpay]'s net unrealiz$ ga9 = su*       
taxable ye>1 su* excess %all be appli$  
to r$uce ! am\nt ( any in/allm5t paym5ts
 ( ! taxpay] ! date = paym5t ( :i* has n
 yet arriv$ 7)\t reg>d to ! taxable ye> 
to :i* su* in/allm5t paym5t relates74   
,any r$uction "u ! prec$+ s5t5ce %all be
 appli$ to in/allm5t paym5ts on a       
la/-due1 fir/-r$uc$ basis4  7i7         
,in=mation report+ ,! ,secret>y %all1 n 
lat] ?an #a ye> aft] ! date ( ! enactm5t
 ( ?is section1 issue regulations-- 7#a7
 requir+ su* p]sons z ! ,secret>y       
det]m9es appropriate to file a return ) 
! ,secret>y :i* include su* in=mation z 
! ,secret>y det]m9es necess>y to c>ry   
out ?is section1 includ+ ! provision (  
applicable f9ancial /atem5ts 7)9 ! mean+
 ( section #dea7;b771 o!r f9ancial or   
acc\nt+ /atem5ts1 insurance valuations1 
or simil> docum5ts1 &  7#b7 requir+     
p]sons requir$ to file returns "u       
p>agraph 7#a7 to furni% /atem5ts to su* 

o!r p]sons z ! ,secret>y det]m9es       
appropriate :i* conta9 all or a portion 
( ! in=mation conta9$ 9 su* return4  7j7
 ,regulations ,! ,secret>y %all issue   
su* regulations or o!r guidance z may be
 necess>y or appropriate to c>ry out !  
purposes ?is section & sections #be;,e &
 #cf;,c1 includ+ regulations or o!r     
guidance to-- 7#a7 require report+ (    
basis & e/imat$ value ( assets1         
aggregat$ by asset class or o!rwise1    
held by ! applicable taxpay]1 &         
liabilities ( ! applicable taxpay]1 z ( 
! close ( ! taxable ye>1 9 su* mann] z !
 ,secret>y may provide1  7#b7 disc\rage 
applicable taxpay]s f inappropriately   
conv]t+ assets into assets :i* are      
non-readily tradable assets1  7#c7 treat
 assets held directly or indirectly by !
 applicable taxpay] z held by !         
applicable taxpay]1  7#d7 9 su*         
circum/ances z ! ,secret>y det]m9es !re 
is a reasonable risk ( an int5t to avoid
 tax1 treat assets own$ or controll$ by 
p]sons relat$ to ! applicable taxpay] z 

own$ by ! applicable taxpay]1  7#e7     
provide = ! application ( su* sections )
 respect to m>ri$ individuals1 includ+  
rules ) respect to-- 7,a7 individuals ^:
 m>ital or jo9t return fil+ /atus       
*anges1 &  7,b7 ! transf] ( an          
individual's m9imum tax acc\nt balance  
to ! individual's sp\se or o!rwise ^u ! 
dea? ( su* individual1  7#f7 provide t !
 tax impos$ "u ?is section %all n be    
tak5 into acc\nt 9 det]m9+ ! am\nt ( any
 requir$ paym5t ( e/imat$ tax or 9      
satisfy+ ! safe h>bor to avoid a p5alty 
= ! und]paym5t ( e/imat$ tax1 &  7#g7 if
 ! ,secret>y det]m9es appropriate to    
c>ry out ! purposes ( ?is section1      
provide = ! sep>ate application ( su*   
sections ) respect to diff]5t classes ( 
assets4  7k7 ,/&>ds = mak+ c]ta9        
det]m9ations ,= purposes ( mak+ any     
det]m9ation describ$ 9 subsection       
7e77#b77;,a71 7e77#b77;,b77iii71        
7e77#c71 7f77#b77;,c71 or 7f77#b77;,d71 
! ,secret>y %all balance ! goals (      
ensur+ valuation accuracy1 m9imiz+ !    

pot5tial = taxpay] gam+1 & avoid+ unduly
 excessive compliance & adm9i/rative    
co/s4  #adhb4 ,c]ta9 o!rwise exempt     
transf]s by c]ta9 weal?y taxpay]s treat$
 z taxable  7a7 ,9 g5]al ,not)/&+ any   
o!r provision ( ?is title1 9 ! case (   
any specifi$ transf] by a cov]$ taxpay]1
 ga9 %all be recogniz$ by su* cov]$     
taxpay] 9 an am\nt equal to ! excess 7if
 any7 ( ! e/imat$ value 7z def9$ 9      
section #adha7;e77#b77 ( ! prop]ty      
transf]r$ ov] ! adju/$ basis ( su*      
prop]ty4  7b7 ,specifi$ transf] ,=      
purposes ( ?is section1 ! t]m specifi$  
transf] means any gift1 *>itable        
contribution1 beque/1 or o!r transf] ^u 
dea?4  7c7 ,cov]$ taxpay] ,= purposes ( 
?is section1 ! t]m cov]$ taxpay] means1 
) respect to any taxable ye>1 any       
taxpay] :i* is an applicable taxpay] =  
su* taxable ye> or 0 an applicable      
taxpay] = any ( ! #aj taxable ye>s      
imm$iately prec$+ su* taxable ye>4  7d7 
,regulations ,! ,secret>y %all issue su*
 regulations or o!r guidance z may be   

necess>y or appropriate to c>ry out !   
purposes ( ?is section1 includ+         
regulations or o!r guidance t provide = 
exceptions ) respect to-- 7#a7 transf]s 
:i* are de m9imis or :i* o!rwise d n    
pose a risk ( circumv5t+ ! purposes (   
?is *apt]1 &  7#b7 taxpay]s :i* d n pose
 su* a risk4  4  7b7 ,cr$it aga9/ taxes 
on recogniz$ ga9s ,subp>t ,a ( "p ,,iv (
 sub*apt] ,a ( *apt] #a ( ! ,int]nal    
,rev5ue ,code ( #aihf is am5d$ by ins]t+
 aft] section #be;,d ! foll[+ new       
section3  #be;,e4 ,m9imum tax on c]ta9  
weal?y taxpay]s cr$it$ aga9/ recogniz$  
ga9s ,9 ! case ( an individual 7includ+ 
any e/ate or tru/71 !re %all be all[$ z 
a cr$it aga9/ ! tax impos$ by ?is *apt] 
= ! taxable ye> an am\nt equal to !     
less] (-- 7#a7 ! taxpay]'s m9imum tax   
acc\nt balance 7z def9$ 9 section #adha7
 = su* taxable ye> det]m9$1 9 ! case (  
any tax impos$ "u section #adha )       
respect to :i* an election is made "u   
su* section to pay su* tax 9 in/allm5ts1
 by only tak+ into acc\nt s mu* ( su*   

tax z has be5 paid z ( ! close ( su*    
taxable ye>1 &  7#b7 ! excess 7if any7  
(-- 7,a7 ! taxpay]'s regul> tax 7z def9$
 9 section #bf7;b77 = su* taxable ye>1  
ov]  7,b7 ! am\nt :i* w\ld be det]m9$ "u
 subp>agraph 7,a7 if ! taxpay] did n    
recognize any ga9 or loss = su* taxable 
ye>4  4  7c7 ,refund ( excess m9imum tax
 on c]ta9 weal?y taxpay]s ,subp>t ,c (  
"p ,,iv ( sub*apt] ,a ( *apt] #a ( !    
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by ins]t+ aft] section #cf;,b ! foll[+  
new section3  #cf;,c4 ,cr$it = excess   
m9imum tax on c]ta9 weal?y taxpay]s ,9 !
 case ( an individual 7includ+ any e/ate
 or tru/71 !re %all be all[$ z a cr$it  
aga9/ ! tax impos$ by ?is subtitle = any
 taxable ye> an am\nt equal to ! excess 
7if any7 (-- 7#a7 ! am\nt describ$ 9    
section #be;,e7#a7 = su* taxable ye>1   
ov]  7#b7 ! sum (-- 7,a7 #bj p]c5t ( !  
taxpay]'s net unrealiz$ ga9 7z def9$ 9  
section #adha7 = su* taxable ye>1  7,b7 
! aggregate cr$its all[$ "u section     
#be;,e = su* taxable ye> & all prior    

taxable ye>s1 &  7,c7 ! aggregate       
r$uctions det]m9$ "u section            
#adha7;h77#f7 = su* taxable ye> & all   
prior taxable ye>s4  4  7d7 ,p5alties = 
failure ,to report  7#a7 ,returns       
,section #fgbd7;d77#a77;,d7 ( ! ,int]nal
 ,rev5ue ,code ( #aihf is am5d$ by      
ins]t+ #adha7;i77#a7 or be=e #fjee4     
7#b7 ,/atem5ts ,section #fgbd7;d77#b7 ( 
su* ,code is am5d$-- 7,a7 9 subp>agraph 
7,,ii71 by /rik+ or at ! end1  7,b7 9 ! 
fir/ subp>agraph 7,,jj71 by /rik+ !     
p]iod at ! end & ins]t+ a comma1  7,c7 9
 ! second subp>agraph 7,,jj7-- 7i7 by   
r$esignat+ su* subp>agraph z subp>agraph
 7,,kk71 &  7ii7 by /rik+ ! p]iod at !  
end & ins]t+ 1 or1 &  7,d7 by add+ at ! 
end ! foll[+ new subp>agraph3  7,,ll7   
section #adha7;i77#b7 7relat+ to        
/atem5ts relat+ to m9imum tax on c]ta9  
weal?y taxpay]s74  4  7e7 ,con=m+       
am5dm5ts  7#a7 ,section                 
#fbaa7;b77#d77;,a7 ( ! ,int]nal ,rev5ue 
,code ( #aihf is am5d$ by ins]t+ #cf;,c1
 aft] #cf;,b14  7#b7 ,p>agraph 7#b7 (   

section #acbd7;b7 ( title #ca1 ,unit$   
,/ates ,code1 is am5d$ by ins]t+ #cf;,c1
 aft] #cf;,b14  7#c7 ,! table ( *apt]s =
 subtitle ,a ( ! ,int]nal ,rev5ue ,code 
( #aihf is am5d$ by ins]t+ aft] ! item  
relat+ to *apt] #d ! foll[+ new item3   
,*apt] #e4 ,m9imum tax on c]ta9 weal?y  
taxpay]s4  4  7#d7 ,! table ( sections =
 subp>t ,a ( "p ,,iv ( sub*apt] ,a (    
*apt] #a ( ! ,int]nal ,rev5ue ,code (   
#aihf is am5d$ by ins]t+ aft] ! item    
relat+ to section #be;,d ! foll[+ new   
item3  ,sec4 #be;,e4 ,m9imum tax on     
c]ta9 weal?y taxpay]s cr$it$ aga9/      
recogniz$ ga9s4  4  7#e7 ,! table (     
sections = subp>t ,c ( "p ,,iv (        
sub*apt] ,a ( *apt] #a ( ! ,int]nal     
,rev5ue ,code ( #aihf is am5d$ by ins]t+
 aft] ! item relat+ to section #cf;,b ! 
foll[+ new item3  ,sec4 #cf;,c4 ,cr$it =
 excess m9imum tax on c]ta9 weal?y      
taxpay]s4  4  7f7 ,s5se ( ,congress     
reg>d+ ,/ate resid5cy rules ,x is ! s5se
 ( ,congress t ! taxation by ! sev]al   
,/ates ( extreme weal? is 9 ! public    

int]e/ & t sil5ce on ! "p ( ,congress   
%all n be con/ru$ to impose any b>ri] to
 ! use ( reasonable resid5cy rules1     
includ+ su* rules t apportion a tax on  
deem$ sales or extreme weal? ov] no m   
?an five ye>s1 by ! sev]al ,/ates or !  
,di/rict ( ,columbia4  7g7 ,effective   
date ,! am5dm5ts made by ?is section    
%all apply to taxable ye>s beg9n+ aft] !
 date ( ! enactm5t ( ?is ,act4