,i #aah? ,,congress #b;d ,session ,h4 ,r4 #ajdfh ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,decemb] #ah1 #bjbd,mr4 ,la,hood introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,ways & ,means ,a ,,bill ,to am5d ! ,int]nal ,rev5ue ,code ( #aihf to e/abli% an elective resid5cy-bas$ income tax = nonresid5t citiz5s ( ! ,unit$ ,/ates1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,resid5ce-,bas$ ,taxation = ,am]icans ,abroad ,act 4 #b4 ,e/abli%m5t ( elective resid5cy-bas$ income tax = nonresid5t citiz5s ( ! ,unit$ ,/ates 7a7 ,9 g5]al ,"p ,,ii ( sub*apt] ,n ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new subp>t3 ,e ,resid5cy-bas$ income tax = nonresid5t citiz5s ( ! ,unit$ ,/ates ,sec4 #hii4 ,election by nonresid5t citiz5s ( ! ,unit$ ,/ates to be subject to resid5cy-bas$ income tax rules4,sec4 #hii;,a4 ,imposition ( tax on def]r$ income ( c]ta9 elect+ individuals4,sec4 #hii;,b4 ,c]tificates ( nonresid5cy4,sec4 #hii;,c4 ,regulations4 #hii4 ,election by nonresid5t citiz5s ( ! ,unit$ ,/ates to be subject to resid5cy-bas$ income tax rules 7a7 ,9 g5]al ,9 ! case ( any elect+ individual3 7#a7 ,resid5cy-bas$ income tax ,! rules ( subsection 7b7 %all apply = ! taxable ye> = :i* ! election "u ?is section is made & all subsequ5t taxable ye>s until su* election is t]m9at$ "u subsection 7d74 7#b7 ,application ( tax on def]r$ income ,! rules ( section #hii;,a %all apply z ( ! day be=e ! election date 7z def9$ 9 section #hii;,a74 ,a t]m9ation ( any election "u ?is section %all h no effect on ! application ( section #hii;,a4 7b7 ,application ( resid5cy-,bas$ income tax ,9 ! case ( any elect+ individual1 ! rules ( ?is subsection are z foll[s3 7#a7 ,9 g5]al ,section #ggja7;b77#a7 %all be appli$-- 7,a7 by treat+ any elect+ individual z an ali5 individual1 7,b7 by sub/itut+ n = nei!r a citiz5 ( ! ,unit$ ,/ates nor 9 subp>agraph 7,b71 & 7,c7 by treat+ ! ,unit$ ,/ates z includ+ ! possessions ( ! ,unit$ ,/ates4 7#b7 ,modification ( sub/antial pres5ce te/ ,section #ggja7;b77#c7 %all appli$ )\t reg>d to subp>agraphs 7,b7 & 7,c74 7#c7 ,requirem5t ( tax resid5cy ,not)/&+ section #ggja7;b71 an elect+ individual %all n fail to be treat$ z a resid5t ( ! ,unit$ ,/ates unless su* individual is a tax resid5t ( a =eign c\ntry4 7#d7 ,treatm5t z ,unit$ ,/ates p]sons bas$ on resid5cy ,section #ggja7;a77#cj77;,a7 %all be appli$ )\t reg>d to ! phrase a citiz5 or4 7#e7 ,coord9ation ) ,,fatca )hold+ ,= purposes ( section #adgb1 an elect+ individual ) a c]tificate ( nonresid5cy issu$ "u section #hii;,b %all be treat$ z hav+ e/abli%$ /atus z an individual :o is n a specifi$ ,unit$ ,/ates p]son4 7#f7 ,exemption f c]ta9 report+ & records requirem5ts ) respect to =eign assets & transactions ,sections #fjch;,d & #fjdf1 & section #ecad ( title #ca1 ,unit$ ,/ates ,code1 %all n apply4 7#g7 ,coord9ation ) rules on expatriation ,section #ggja7;a77#ej7 %all n be treat$ z apply+ ) respect to ! application ( ?is subp>t4 7#h7 ,waiv] ( ,treaty sav+ clause ,! ,unit$ ,/ates waives ! application ( ea* sav+ clause 9 any ,unit$ ,/ates income tax treaty ) respect to elect+ individuals4 ,= purposes ( ! prec$+ s5t5ce1 ! t]m sav+ clause means any provision :i* w\ld 7b = ?is p>agraph7 prev5t ! elect+ individual f b5efitt+ f a provision ( ! treaty elim9at+ d\ble taxation4 7c7 ,elect+ individual ,= purposes ( ?is subp>t-- 7#a7 ,9 g5]al ,! t]m elect+ individual means any citiz5 ( ! ,unit$ ,/ates :o has 9 effect an election 7made at su* "t & 9 su* mann] z ! ,secret>y may provide7 to h ! provisions ?is subp>t apply4 7#b7 ,citiz5s born abroad ,9 ! case ( any citiz5 ( ! ,unit$ ,/ates :o is born outside ! ,unit$ ,/ates1 su* individual %all be treat$ z a elect+ individual until su* "t z su* individual becomes a resid5t ( ! ,unit$ ,/ates "u clause 7ii7 or 7iii7 ( section #ggja7;b77#a77;,a74 7#c7 ,exception = ,f$]al employees ,not)/&+ any o!r provision ( ?is subp>t1 an individual %all n be treat$ z an elect+ individual = any taxable ye> if su* individual is employ$ by ! ,f$]al ,gov]nm5t at any "t dur+ su* taxable ye>4 7d7 ,rules relat$ to election 7#a7 ,mann] ( election ,an election "u ?is section %all be made at su* "t & 9 su* mann] z ! ,secret>y may provide &1 once made1 is irrevocable 7b may be t]m9at$ z provid$ 9 ?is section74 7#b7 ,requirem5ts ( election ,an election "u ?is section %all n be effective unless-- 7,a7 ! tax impos$ "u section #hii;,a 7if any7 is paid 7or def]r$ "u section #hii;,a7b77 at su* "t z ! ,secret>y may provide1 & 7,b7 ! elect+ individual c]tifies "u p5alty ( p]jury t ! elect+ individual has met ! requirem5ts ( ?is title = ! #e prec$+ taxable ye>s & submits su* evid5ce ( su* compliance z ! ,secret>y may require4 7#c7 ,t]m9ation ( election ,an election "u ?is section-- 7,a7 %all be t]m9at$ z ( ! close ( ! taxable ye> prec$+ any taxable ye> 7) respect to :i* ! election w\ld o!rwise apply7 = :i* ! elect+ individual is a resid5t ( ! ,unit$ ,/ates "u clause 7ii7 or 7iii7 ( section #ggja7;b77#a77;,b71 & 7,b7 may be t]m9at$ by ! elect+ individual at su* "t & 9 su* mann] z ! ,secret>y may provide4 7e7 ,special rule = %ort-,t]m nonresid5cy ,if an election "u ?is section by an elect+ individual is t]m9at$ be=e ! beg9n+ ( ! f\r? taxable ye> to :i* su* election w\ld o!rwise apply1 subsection 7b7 %all n apply to any taxable ye> to :i* su* election w\ld h o!rwise appli$4 #hii;,a4 ,imposition ( tax on def]r$ income ( c]ta9 elect+ individuals 7a7 ,g5]al rules ,= purposes ( ?is subtitle-- 7#a7 ,deem$ sale ,all prop]ty ( a specifi$ elect+ individual %all be treat$ z sold on ! day be=e ! election date = its fair m>ket value4 7#b7 ,recognition ( ga9 or loss ,9 ! case ( any sale "u p>agraph 7#a7-- 7,a7 not)/&+ any o!r provision ( ?is title1 any ga9 aris+ f su* sale %all be tak5 into acc\nt = ! taxable ye> ( ! sale1 & 7,b7 any loss aris+ f su* sale %all be tak5 into acc\nt = ! taxable ye> ( ! sale to ! ext5t o!rwise provid$ by ?is title1 except t section #ajia %all n apply to any su* loss4 ,prop] adju/m5t %all be made 9 ! am\nt ( any ga9 or loss subsequ5tly realiz$ = ga9 or loss tak5 into acc\nt "u ! prec$+ s5t5ce4 7b7 ,specifi$ elect+ individual ,= purposes ( ?is section-- 7#a7 ,9 g5]al ,! t]m specifi$ elect+ individual means any elect+ individual if ! net wor? ( ! individual z ( ! election date exce$s ! basic exclusion am\nt 9 effect "u section #bjaj7;c77#c7 z ( su* date4 7#b7 ,net wor? ,! t]m net wor? means1 ) respect to any elect+ individual1 ! excess 7if any7 (-- 7,a7 ! fair m>ket value ( all assets ( su* individual1 ov] 7,b7 ! indebt$ness ( su* individual4 7c7 ,election date ,= purposes ( ?is section1 ! t]m election date means ! fir/ day ( ! fir/ taxable ye> to :i* ! election "u section #hii applies4 7d7 ,exceptions 7#a7 ,9 g5]al ,subsection 7a7 %all n apply to any int]e/ 9 ! foll[+ prop]ty ( ! specifi$ elect+ individual3 7,a7 ,any def]r$ comp5sation item4 7,b7 ,any qualifi$ retirem5t plan 7z def9$ 9 section #digd7;c774 7,c7 ,any specifi$ tax def]r$ acc\nt4 7,d7 ,any int]e/ 9 a nongrantor tru/4 7,e7 ,any real prop]ty locat$ 9 ! ,unit$ ,/ates4 7,f7 ,any real prop]ty locat$ outside ! ,unit$ ,/ates if1 dur+ ! #e-ye> p]iod end+ on ! election date1 su* prop]ty has be5 own$ & us$ by ! specifi$ elect+ individual z su* individual's pr9cipal resid5ce = p]iods aggregat+ #b ye>s or m4 7#b7 ,def]r$ comp5sation item ,= purposes ( ?is subsection1 ! t]m def]r$ comp5sation item means-- 7,a7 any int]e/ 9 a plan or arrangem5t describ$ 9 section #bai7;g77#e71 7,b7 any int]e/ 9 a =eign p5sion plan or simil> retirem5t arrangem5t or program1 7,c7 any item ( def]r$ comp5sation1 & 7,d7 any prop]ty1 or "r to prop]ty1 :i* ! individual is entitl$ to receive 9 connection ) ! p]=mance ( s]vices to ! ext5t n previ\sly tak5 into acc\nt "u section #hc or 9 accordance ) section #hc4 7#c7 ,specifi$ tax def]r$ acc\nt ,= purposes ( ?is subsection1 ! t]m specifi$ tax def]r$ acc\nt means a qualifi$ tuition program 7z def9$ 9 section #ebi71 a qualifi$ ,,able program 7z def9$ 9 section #ebi;,a71 a ,cov]dell education sav+s acc\nt 7z def9$ 9 section #ecj71 a heal? sav+s acc\nt 7z def9$ 9 section #bbc71 & an ,ar*] ,,msa 7z def9$ 9 section #bbj74 7#d7 ,nongrantor tru/ ,= purposes ( ?is subsection1 ! t]m nongrantor tru/ means ! portion ( any tru/ t ! specifi$ elect+ individual is n consid]$ ! own] ( "u subp>t ,e ( "p ,i ( sub*apt] ,j4 ,! det]m9ation "u ! prec$+ s5t5ce %all be made imm$iately be=e ! election date4 7e7 ,election ,to def] tax 7#a7 ,9 g5]al ,if ! specifi$ elect+ individual elects ! application ( ?is subsection ) respect to any non-readily tradable prop]ty treat$ z sold by reason ( subsection 7a71 ! "t = paym5t ( ! additional tax attributable to su* prop]ty %all be ext5d$ until ! due date ( ! return = ! taxable ye> 9 :i* su* prop]ty is dispos$ ( 7or1 9 ! case ( prop]ty dispos$ ( 9 a transaction 9 :i* ga9 is n recogniz$ 9 :ole or 9 "p1 until su* o!r date z ! ,secret>y may prescribe74 7#b7 ,det]m9ation ( tax ) respect to prop]ty ,= purposes ( p>agraph 7#a71 ! additional tax attributable to any prop]ty is an am\nt :i* be>s ! same ratio to ! additional tax impos$ by ?is *apt] = ! taxable ye> solely by reason ( subsection 7a7 z ! ga9 tak5 into acc\nt "u subsection 7a7 ) respect to su* prop]ty be>s to ! total ga9 tak5 into acc\nt "u subsection 7a7 ) respect to all prop]ty to :i* subsection 7a7 applies4 7#c7 ,t]m9ation ( ext5sion ,! due date = paym5t ( tax may n be ext5d$ "u ?is subsection lat] ?an ! due date = ! return ( tax impos$ by ?is *apt] = ! taxable ye> :i* includes ! date ( dea? ( ! specifi$ elect+ individual 7or1 if e>li]1 ! "t t ! security provid$ ) respect to ! prop]ty fails to meet ! requirem5ts ( p>agraph 7#d71 unless ! elect+ individual corrects su* failure )9 ! "t specifi$ by ! ,secret>y74 7#d7 ,non-readily tradable prop]ty ,= purposes ( ?is subsection1 ! t]m non-readily tradable prop]ty means any prop]ty o!r ?an prop]ty :i* is readily tradable on an e/abli%$ securities m>ket4 7#e7 ,security 7,a7 ,9 g5]al ,no election may be made "u p>agraph 7#a7 ) respect to any prop]ty unless adequate security is provid$ ) respect to su* prop]ty4 7,b7 ,adequate security ,= purposes ( subp>agraph 7,a71 security ) respect to any prop]ty %all be treat$ z adequate security if-- 7i7 x is a bond :i* is furni%$ to1 & accept$ by1 ! ,secret>y1 :i* is condition$ on ! paym5t ( tax 7& int]e/ !reon71 & :i* meets ! requirem5ts ( section #fcbe1 or 7ii7 x is ano!r =m ( security = su* paym5t 7includ+ lett]s ( cr$it7 t meets su* requirem5ts z ! ,secret>y may prescribe4 7#f7 ,waiv] ( c]ta9 rights ,no election may be made "u p>agraph 7#a7 unless ! specifi$ elect+ individual makes an irrevocable waiv] ( any "r "u any treaty ( ! ,unit$ ,/ates :i* w\ld preclude assessm5t or collection ( any tax impos$ by reason ( ?is section4 7#g7 ,elections ,an election "u p>agraph 7#a7 %all only apply to prop]ty describ$ 9 ! election &1 once made1 is irrevocable4 7#h7 ,int]e/ ,= purposes ( section #ffja1 ! la/ date = ! paym5t ( tax %all be det]m9$ )\t reg>d to ! election "u ?is subsection4 7#i7 ,special rule if election ( resid5cy-bas$ income tax t]m9ates be=e prop]ty is dispos$ ( ,9 ! case ( any prop]ty ) respect to :i* an election "u ?is subsection has be5 made1 if ! election "u section #hii ) respect to ! elect+ individual t]m9ates be=e ! beg9n+ ( ! taxable ye> 9 :i* su* prop]ty is dispos$ (1 ?is section %all n apply to su* prop]ty4 7f7 ,special rules 7#a7 ,t]m9ation ( def]rals1 etc ,9 ! case ( any specifi$ elect+ individual1 not)/&+ any o!r provision ( ?is title-- 7,a7 any "t p]iod = acquir+ prop]ty :i* w\ld result 9 ! r$uction 9 ! am\nt ( ga9 recogniz$ ) respect to prop]ty dispos$ ( by ! elect+ individual %all t]m9ate on ! day be=e ! election date1 & 7,b7 any ext5sion ( "t = paym5t ( tax %all cease to apply on ! day be=e ! election date & ! unpaid portion ( su* tax %all be due & payable at ! "t & 9 ! mann] prescrib$ by ! ,secret>y4 7#b7 ,/ep-up 9 basis ,solely = purposes ( det]m9+ any tax impos$ by reason ( subsection 7a71 prop]ty :i* 0 held by an individual on ! date ! individual mo/ rec5tly became a resid5t ( ! ,unit$ ,/ates 7)9 ! mean+ ( section #ggja7;b77 %all be treat$ z hav+ a basis on su* date ( n less ?an ! fair m>ket value ( su* prop]ty on su* date4 ,! prec$+ s5t5ce %all n apply if ! individual elects n to h su* s5t5ce apply4 ,su* an election1 once made1 %all be irrevocable4 7#c7 ,sep>ate application to ea* election ,9 ! case ( any individual :o makes m ?an #a election "u section #hii1 ?is section %all be appli$ sep>ately ) respect to ea* su* election4 7g7 ,transitional rule 7#a7 ,9 g5]al ,?is section1 & subsection 7a77#b7 & 7d77#b7 ( section #hii1 %all n apply to-- 7,a7 any individual if-- 7i7 z ( ! introduction date1 su* individual meets ! ord9>y resid5ce te/ "u p>agraph 7#b71 7ii7 su* individual has n be5 a resid5t ( ! ,unit$ ,/ates 7z def9$ 9 section #ggja7;b77#a77;,a77ii77 = at lea/ #c ( ! la/ #e taxable ye>s end+ be=e ! introduction date1 & 7iii7 su* individual c]tifies "u p5alty ( p]jury t ! elect+ individual has met ! requirem5ts ( ?is title = ! la/ #c taxable ye>s end+ be=e ! introduction date & submits su* evid5ce ( su* compliance z ! ,secret>y may require1 & 7,b7 any individual :o has n be5 a resid5t ( ! ,unit$ ,/ates 7z def9$ 9 section #ggja7;b77#a77;,a77ii77 at any "t dur+ ! p]iod beg9n+ on ! lat] ( ! date su* individual atta9s age #be or ,m>* #ah1 #bjaj1 & end+ on ! date ( ! enactm5t ( ?is section 7& su* individual %all be treat$ z describ$ 9 ?is subp>agraph )\t reg>d to :e!r or n su* individual has met ! requirem5ts ( ?is title at any "t74 7#b7 ,ord9>y resid5ce te/ ,an individual meets ! ord9>y resid5ce te/ if su* individual is a tax resid5t ( a =eign c\ntry & su* =eign c\ntry is ! place :]e su* individual regul>ly1 normally1 or cu/om>ily lives4 7#c7 ,introduction date ,= purposes ( ?is subsection1 ! t]m introduction date means ! date ( ! introduction ( ! bill :i*1 ^u enactm5t1 enact$ ?is section4 #hii;,b4 ,c]tificates ( nonresid5cy 7a7 ,9 g5]al ,^u application1 ! ,secret>y %all issue a c]tificate ( nonresid5cy-- 7#a7 to any elect+ individual if ! ,secret>y det]m9es t an election by su* individual "u section #hii is 9 effect1 & 7#b7 to any citiz5 ( ! ,unit$ ,/ates born 9 a =eign c\ntry aft] ! date ( ! enactm5t ( ?is section4 7b7 ,t]m9ation ( c]tificate ,a c]tificate ( nonresid5cy issu$ "u ?is section %all t]m9ate on ! fir/ date aft] su* issuance ) respect to :i* ! individual to :om su* c]tificate is issu$-- 7#a7 is a resid5t ( ! ,unit$ ,/ates 7z def9$ 9 section #ggja7;b77#a77;,a77ii771 or 7#b7 9 ! case ( an individual describ$ 9 subsection 7a77#a71 o!rwise ceases to h an election 9 effect "u section #hii4 7c7 ,publication ( c]tificate numb]s ,! ,secret>y %all ma9ta9 a se>*able public database & %all-- 7#a7 promptly ^u ! issuance ( any c]tificate ( nonresid5cy1 update su* database to include ! c]tificate numb] & date ( issuance ( su* c]tificate1 & 7#b7 promptly ^u ! t]m9ation ( any c]tificate ( nonresid5cy1 update su* database to indicate ! t]m9ation ( su* c]tificate & ! date ( su* t]m9ation4 7d7 ,us] fees 7#a7 ,9 g5]al ,! ,secret>y %all impose a us] fee ( #ajj p] application "u ?is section4 ,fees receiv$ "u ?is subsection %all be available to ! ,secret>y 7)\t ne$ ( fur!r appropriation7 = ! co/s ( process+ applications "u ?is section4 7#b7 ,inflation adju/m5t ,9 ! case ( any cal5d> ye> beg9n+ aft] #bjbe1 ! #ajj am\nt 9 p>agraph 7#a7 %all be increas$ by an am\nt equal to-- 7,a7 su* doll> am\nt1 multipli$ by 7,b7 ! co/-(-liv+ adju/m5t det]m9$ "u section #a7;f77#c7 = su* cal5d> ye> det]m9$ by sub/itut+ #bjbd = #bjaf 9 subp>agraph 7,a77ii7 !re(4 ,if any increase "u ! prec$+ s5t5ce is n a multiple ( #e1 su* increase %all be r\nd$ to next l[e/ multiple ( #e4 7e7 ,ref]5ces ,except :]e ! context cle>ly indicates to ! contr>y1 any ref]5ce 9 any provision ( law to a c]tificate ( nonresid5cy issu$ "u ?is section %all include only su* c]tificates :i* h n be5 t]m9at$4 #hii;,c4 ,regulations ,! ,secret>y %all prescribe su* regulations or o!r guidance z may be necess>y or appropriate to c>ry out ! purposes ( ?is subp>t4 4 7b7 ,cl]ical am5dm5t ,! table ( subp>ts = "p ,,ii ( sub*apt] ,n ( *apt] #a ( su* ,code is am5d$ by add+ at ! end ! foll[+ new item3 ,subp>t ,e--,resid5cy-bas$ income tax = nonresid5t citiz5s ( ! ,unit$ ,/ates 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to elections made aft] ! date ( ! enactm5t ( ?is ,act = taxable ye>s end+ aft] su* date4 #c4 ,p>ticipat+ =eign f9ancial in/itutions prohibit$ f discrim9at+ aga9/ nonresid5t ,unit$ ,/ates citiz5s 7a7 ,9 g5]al ,section #adga7;b77#a7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ & at ! end ( subp>agraph 7,e71 by /rik+ ! p]iod at ! end ( subp>agraph 7,f7 & ins]t+ 1 &1 & by ins]t+ aft] subp>agraph 7,f7 ! foll[+ new subp>agraph3 7,g7 n to h policies or practices t discrim9ate aga9/ op5+ or ma9ta9+ f9ancial acc\nts = individuals :o are citiz5s ( ! ,unit$ ,/ates & resid5ts ( ! c\ntry 9 :i* ! f9ancial acc\nt is to be op5$ or ma9ta9$4 4 7b7 ,effective date 7#a7 ,9 g5]al ,! am5dm5ts made by ?is section %all take effect on ! date ( ! enactm5t ( ?is ,act4 7#b7 ,transition rule ,dur+ ! #a-ye> p]iod beg9n+ on ! date ( ! enactm5t ( ?is ,act1 an agreem5t %all n fail to be treat$ z describ$ 9 section #adga7;b77#a7 ( ! ,int]nal ,rev5ue ,code ( #aihf solely by reason fail+ to include ! requirem5t ( subp>agraph 7,g7 !re( if ! in/itution ent]+ into su* agreem5t satisfies su* requirem5t at all times dur+ su* p]iod )\t reg>d to :e!r su* requirem5t is includ$ 9 su* agreem5t4