,i  #aai? ,,congress  #b;d ,session  ,h4
 ,r4 #geei  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,febru>y #ab1         
#bjbf,mr4 ,au/9 ,scott ( ,georgia       
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,ways & ,means  ,a     
,,bill  ,to am5d ! ,int]nal ,rev5ue     
,code ( #aihf to d5y d$uction = outs\rc+
 paym5ts4  #a4 ,d5ial ( income tax      
d$uction on outs\rc+ paym5ts  7a7 ,9    
g5]al ,"p ,,ix ( sub*apt] ,b ( *apt] #a 
( ! ,int]nal ,rev5ue ,code ( #aihf is   
am5d$ by add+ at ! end ! foll[+ new     
section3  #bhj;,i4 ,outs\rc+ paym5ts    
7a7 ,9 g5]al ,no d$uction %all be all[$ 
"u ?is *apt] = any outs\rc+ paym5t4  7b7
 ,outs\rc+ paym5t ,= purposes ( ?is     
section-- 7#a7 ,9 g5]al ,! t]m outs\rc+ 
paym5t means any premium1 fee1 royalty1 
s]vice *>ge1 or o!r paym5t made-- 7,a7 9
 ! c\rse ( a trade or bus9ess1  7,b7 to 
a =eign p]son1 &  7,c7 ) respect to     
labor or s]vices ! b5efit ( :i* is      
direct$1 directly or indirectly1 to     
consum]s locat$ 9 ! ,unit$ ,/ates4  7#b7

 ,mix$ paym5ts ,9 ! case ( any paym5t to
 a =eign p]son ) respect to :i* labor or
 s]vices are direct$ to consum]s bo? )9 
& )\t ! ,unit$ ,/ates1 ! am\nt treat$ z 
an outs\rc+ paym5t %all n exce$ ! am\nt 
equal to ! product ( su* paym5t & a     
fraction-- 7,a7 ! num]ator ( :i* is !   
am\nt ( labor or s]vices ) respect to   
su* paym5t direct$ to consum]s )9 !     
,unit$ ,/ates1 to  7,b7 ! labor or      
s]vices ) respect to su* paym5t direct$ 
to all consum]s4  7c7 ,=eign p]son ,=   
purposes ( ?is section1 ! t]m =eign     
p]son means any p]son :o is n a ,unit$  
,/ates p]son1 except t su* t]m %all n   
include any corporation or p>tn]%ip :i* 
is organiz$ "u ! laws ( a possession ( !
 ,unit$ ,/ates4  7d7 ,regulations & o!r 
guidance ,! ,secret>y %all prescribe su*
 regulations & o!r guidance z may be    
necess>y or appropriate to c>ry out ?is 
section1 includ+ regulations or guidance
 to prev5t ! avoidance or abuse ( !     
purposes ( ?is section1 includ+ ?r\gh ! 
use ( transf] pric+ arrangem5ts4  4  7b7

 ,cl]ical am5dm5t ,! table ( section =  
"p ,,ix ( sub*apt] ,b ( *apt] #a ( !    
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by add+ at ! end ! foll[+ new item3     
,sec4 #bhj;,i4 ,outs\rc+ paym5ts4  4    
7c7 ,effective date ,! am5dm5ts made by 
?is section %all apply to paym5ts made  
aft] ,decemb] #ca1 #bjbe1 9 taxable ye>s
 end+ aft] su* date4