,,ii #aaith ,,congress #b;d ,session ,s4 #dfaf ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,may #ba1 #bjbf,mr4 ,wyden 7for himself and ,mr4 ,schumer7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to impose a tax on specified settlement fund payments1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,stop ,letting ,united ,states ,heads ,funnel ,unauthorized ,nontransparent ,dollars ,act of #bjbf or the ,,slush ,,fund ,act of #bjbf4 #b4 ,imposition of tax on specified settlement fund payments 7a7 ,in general ,subtitle ,d of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new chapter3 #ej;,b ,specified settlement fund payments ,sec4 #ejjj;,e4 ,imposition of tax on specified settlement fund payments4 #ejjj;,e4 ,imposition of tax on specified settlement fund payments 7a7 ,in general ,there is hereby imposed on any taxpayer for any taxable year a tax equal to #ajj percent of any specified settlement fund payment received by such taxpayer during such taxable year4 7b7 ,specified settlement fund payment ,for purposes of this section-- 7#a7 ,in general ,the term specified settlement fund payment means1 with respect to any taxpayer for any taxable year1 any amount received by such taxpayer during such taxable year from any fund1 trust1 or account the assets of which are derived from the outcome 7whether by settlement1 verdict1 or otherwise7 of any civil action which was filed by a specified person against the ,united ,states 7or any agency or instrumentality thereof74 7#b7 ,specified person 7,a7 ,in general ,the term specified person means-- 7i7 any individual who has served as ,president of the ,united ,states1 7ii7 any member of the family of such individual1 and 7iii7 any person controlled 7based on principles similar to the principles which apply for purposes of section #eb7;b77 by one or more individuals described in clause 7i7 or 7ii74 7,b7 ,member of the family ,the term member of the family means1 with respect to any individual described in subparagraph 7,a77i7-- 7i7 the spouse of such individual1 and 7ii7 any individual who bears a relationship to such individual which is described in subparagraphs 7,a7 through 7,g7 of section #aeb7;d77#b74 7c7 ,special rules 7#a7 ,administrative provisions ,for purposes of subtitle ,f1 any tax imposed by this section shall be treated as a tax imposed by subtitle ,a4 7#b7 ,exclusion from gross income ,for purposes of chapter #a1 the gross income of any taxpayer for any taxable year shall not include any specified settlement fund payment received by such taxpayer during such taxable year4 4 7b7 ,no deduction from income tax ,section #bge7;a77#f7 of such ,code is amended by inserting #ej;,b1 after #ej;,a14 7c7 ,failure ,to pay tax on specified settlement fund payments ,part ,i of subchapter ,a of chapter #fh of such ,code is amended by adding at the end the following new section3 #fffj4 ,failure to pay tax on specified settlement fund payments ,any taxpayer who1 with respect to any taxable year-- 7#a7 willfully fails to pay the tax imposed by section #ejjj;,e7a71 or 7#b7 willfully attempts in any manner to evade or defeat such tax or the payment thereof1 shall1 in addition to other penalties provided by law1 be liable for a penalty of #ej percent of such tax for such taxable year4 4 7d7 ,clerical amendments 7#a7 ,the table of chapters for subtitle ,d of such ,code is amended by adding at the end the following new item3 ,chapter #ej;,b--,specified settlement fund payments 4 7#b7 ,the table of sections for part ,i of subchapter ,a of chapter #fh of such ,code is amended by adding at the end the following new item3 ,sec4 #fffj4 ,failure to pay tax on specified settlement fund payments4 4 7e7 ,effective dates 7#a7 ,in general ,except as provided by paragraph 7#b71 the amendments made by this section shall apply with respect to amounts received on or after ,may #bj1 #bjbf4 7#b7 ,failure to pay tax on specified settlement fund payments ,the amendment made by subsection 7c7 shall apply with respect to taxable years ending on or after ,may #bj1 #bjbf4 #c4 ,returns relating to specified settlement fund payments 7a7 ,in general ,subpart ,b of part ,,iii of subchapter ,a of chapter #fa of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #fjej;,,bb4 ,returns relating to specified settlement fund payments 7a7 ,requirement of reporting ,every trustee1 administrator1 or other fiduciary who makes any specified settlement fund payment 7as defined in section #ejjj;,e7b77 to any taxpayer during any taxable year shall make a return1 according to the forms and regulations prescribed by the ,secretary1 setting forth-- 7#a7 the aggregate amount of such payments received by such taxpayer during such taxable year1 and 7#b7 the name and address of such taxpayer4 7b7 ,statements ,to be furnished with respect to whom information is required ,every person required to make a return under subsection 7a7 shall furnish to each taxpayer whose name is required to be set forth in such return a written statement-- 7#a7 showing the identity of the trustee1 administrator1 or other fiduciary making the specified settlement fund payment1 7#b7 showing the aggregate amount of such payments received by such taxpayer required to be shown on the return1 and 7#c7 notifying that such payments are subject to the tax imposed by section #ejjj;,e7a74 ,the written statement required under the preceding sentence shall be furnished to the taxpayer on or before ,january #ca of the year following the taxable year for which the return under subsection 7a7 was required to be made4 7c7 ,public disclosure of returns ,the ,secretary shall1 not later than #a month following receipt of a return under subsection 7a71 make such return publicly available 7in such form and manner as the ,secretary determines appropriate74 4 7b7 ,failure ,to file return with respect to specified settlement fund payments ,section #ffeb of such ,code is amended by adding at the end the following new subsection3 7q7 ,failure ,to file return with respect to specified settlement fund payments ,in the case of any failure to make a return required under section #fjej;,,bb which contains the information required by such section on the date prescribed therefor1 unless it is shown that such failure is due to reasonable cause1 there shall be paid 7on notice and demand by the ,secretary and in the same manner as tax7 by the person failing to file such return1 an amount equal to #aj1jjj for each such failure4 4 7c7 ,clerical amendment ,the table of sections for subpart ,b of part ,,iii of subchapter ,a of chapter #fa of such ,code is amended by adding at the end the following new item3 ,sec4 #fjej;,,bb4 ,returns relating to specified settlement fund payments4 4 7d7 ,effective dates 7#a7 ,in general ,except as provided by paragraph 7#b71 the amendments made by this section shall apply with respect to amounts paid on or after ,may #bj1 #bjbf4 7#b7 ,failure to file return with respect to specified settlement fund payments ,the amendment made by subsection 7b7 shall apply with respect to taxable years ending on or after ,may #bj1 #bjbf4