Deficit Reduction Act of 1984

Summary

Tax Reform Act of 1983 - Title I: Tax-Exempt Entity Leasing - Tax-Exempt Entity Leasing Tax Act of 1983 - Amends the Internal Revenue Code to deny property used by governments, tax-exempt foreign individuals, and other tax-exempt entities accelerated depreciation deductions. Requires that any deductions for depreciation of such property be calculated according to the straight line method. Exempts from such limitation short-term or casual leases of property and property used in an unrelated trade or business. Denies the investment tax credit for property used by foreign governments and other foreign persons. Denies the investment tax credit for rehabilitation expenditures for property which is financed by the proceeds of industrial development bonds. States that the provisions of this Act shall be effective for property placed in service after May 23, 1983, with an exception for binding contracts and mass commuting vehicles financed by tax-exempt securities. Requires the Secretary of the Treasury to conduct a study of the present class lives of certain high technology property. Title II: Life Insurance Provisions - Life Insurance Tax Act of 1983 - Subtitle A: Taxation of Life Insurance Companies - Sets the rate of tax on a life insurance company at the corporate rate on its life insurance company taxable income (LICTI). Sets forth an alternative tax in the case of capital gains. Defines life insurance company taxable income as life insurance gross income reduced by life insurance deductions. Defines life insurance gross income as the sum of: (1) premiums; (2) decreases in certain reserves; and (3) other amounts generally includible by a taxpayer in gross income. Allows three types of deductions: (1) general life insurance deductions; (2) the special life insurance deduction; and (3) the small life insurance company deduction. Sets forth definitions and special rules for each type of deduction. Sets forth rules for the calculation of net increases and decreases in reserves. Requires life insurance companies to use either the accrual method of accounting or a method permitted under regulations which combines an accrual method with another recognized method. Sets forth rules for the amortization of premium and accrual of discount. Sets forth rules for the computation of a company's share and the policyholders' share of investment income. Sets forth rules for the tax treatment of foreign life insurance companies. Requires an adjustment to LICTI where a required surplus held in the United States is less than a specified amount. Sets forth rules for the tax treatment of contiguous country branches of domestic life insurance companies. Provides that LICTI which has an existing policyholders surplus account shall be increased by any direct or indirect distribution to shareholders from such account. Defines "life insurance company" as an insurance company which is engaged in the business of issuing life insurance and annuity contracts or noncancellable contracts of health and life insurance if its life insurance reserves plus unearned premiums and unpaid losses comprise more than 50 percent of its total reserves. Sets forth rules for the tax treatment of variable contracts. Sets forth rules relating to capital gains and losses of a life insurance company. Sets forth the effective date for the provisions of this Act. Provides transitional rules. Subtitle B: Taxation of Life Insurance Products - Redefines "life insurance contract" for purposes of the Internal Revenue Code. Defines such a contract as any contract, which is a life insurance contract under applicable State or foreign law, but only if the contract meets either of two alternatives: (1) a cash value accumulation test; or (2) a test consisting of a guideline premium requirement and a cash value corridor requirement. Specifies requirements of each such test. Sets forth rules for contracts not meeting the life insurance definition. Sets forth transitional rules. Treats as distributed to a contract holder any amount of an annuity contract held by an individual who dies before the annuity starting date. Exempts any such amount from the five-percent penalty tax on a premature distribution from an annuity. Limits the amount of the interest deduction allowed in the case of life insurance loans. Sets forth rules for the calculation of such limit. Extends to former employees and key employees the limitations on group-term life insurance purchased for employees. Subtitle C: Nondeductible Contributions to Individual Retirement Plans - Allows certain nondeductible contributions to individual retirement accounts and annuities. Limits such contributions to the least of: (1) $1,750; (2) the excess of compensation includible in gross income over the amount allowable as a deduction under present rules; or (3) as designated by the taxpayer as a nondeductible contribution. Subtitle D: Studies - Requires the Secretary to report annually to specified committees of the Congress on the revenues received by this Act and to compare the amount of such revenue and the amount anticipated by reason of changes made by the Tax Equity and Fiscal Responsibility Act of 1982 and this Act. Requires the Secretary to make annual reports in the years 1986, 1987, 1988, and 1989 concerning the impact of this Act on specified segments and products of the life insurance industry. Title III: Revision of Private Foundation Provisions - Private Foundation Tax Treatment Revision Act of 1983 - Increases from 20 percent to 30 percent the percentage limitation for individual contributions to private foundations. Allows a five year carryover of excess contributions to private foundations. Allows a deduction for the full fair market value of certain stock contributed to private foundations where market quotations for such stock are readily available. Exempts from the excise tax on investment income certain operating foundations. Reduces from two percent to one percent the excise tax on investment income where a private foundation meets certain distribution requirements. Limits the amount of certain administrative expenses which may be taken into account as qualifying distributions for purposes of the tax on failure to distribute income. Authorizes the Secretary of the Treasury to abate first-time private foundation taxes (other than the tax on self-dealing) if it is established that the violation of private foundation rules was: (1) due to reasonable cause and not to willful neglect; and (2) has been corrected within the appropriate correction period. Repeals the requirement that a private foundation may support a voter registration drive only if such registration drive is conducted in at least five States. Allows a five year extension of the requirement to dispose of certain excess holdings attributable to large gifts and bequests. Disregards any decrease in percentage holdings attributable to issuance of stock where the decrease is two percent or less. Requires the aggregation of stock holdings of a private foundation and disqualified persons in applying the 95 percent ownership test. Grants a five year period to dispose of excess holdings resulting from certain acquisitions by disqualified persons. Provides that the conducting of certain games of chance by a non-profit organization shall not be treated as an unrelated trade or business. Provides that the penalty tax on self-dealing shall not apply to certain stock purchases. Provides that a person shall cease to be a substantial contributor after 10 years with no connection to a foundation. Title IV: Tax Simplification - Tax Law Simplification and Improvement Act of 1983 - Subtitle A: Revision and Simplification of Estimated Income Tax for Individuals - Amends the Internal Revenue Code to revise provisions dealing with the quarterly payment of estimated tax by individuals. Establishes the amount of the penalty for underpayment of estimated tax at the amount of the underpayment for the period of underpayment, plus interest on such amount. Revises the schedule for the payment of estimated tax installments. Specifies that the amount of the required annual estimated tax payment shall be the lesser of 80 percent of the current tax shown on the taxpayer's return or 100 percent of the preceding year's tax liability. Permits lower estimated tax payments if the taxpayer can show that the installment payments made over the year were adequate for each quarter based on an annualized income concept. Exempts a taxpayer from an estimated tax penalty: (1) where the tax liability is less than $500; (2) where there is no tax liability for the preceding taxable year; or (3) where there is reasonable cause for the underpayment. Exempts a taxpayer from a penalty for underpayment of estimated tax for the fourth quarter if such taxpayer files on or before January 31 of the following taxable year a return and pays any tax liability in full (March 1 for farmers and fishermen). Permits farmers and fishermen to make only one annual estimated tax payment on January 15 of each year. Lowers the percentage of the required estimated tax payment for such farmers and fishermen to 66-2/3 percent of the tax shown on their returns. Requires the Secretary of the Treasury to prescribe regulations to carry out the provisions of this title. Repeals provisions of the Internal Revenue Code dealing with the declaration of estimated tax by individuals, the time for filing declarations of estimated tax, and installment payments of estimated income tax by individuals. Requires that the crediting of a prior year overpayment of income tax against estimated tax shall be determined without regard to a specified Revenue Ruling. Provides that the amendments made by this title shall apply to taxable years beginning after December 31, 1983. Subtitle B: Domestic Relations - Domestic Relations Tax Reform Act of 1983 - Amends the Internal Revenue Code to provide for the nonrecognition of gain from the transfer of property to a spouse or to a former spouse, if such transfer is incident to a divorce. Treats such transfer as a gift for purposes of determining the spouse's basis in such property (same basis as transferor spouse). Requires that any transfer of property under this provision occur within one year after the marriage ceases or be related to the cessation of the marriage. Redefines "alimony or separate maintenance payments" for purposes of determining whether such amounts should be included in gross income. Eliminates requirements that alimony payments must be made on account of a marital obligation imposed under local law and that such payments be made on a periodic basis. Requires that alimony payments be made in cash to a spouse under a divorce or separation agreement. Specifies that the divorce or separation agreement may indicate whether a payment to a spouse is alimony. Prohibits the characterization of a payment to a spouse as alimony if it is made for a transfer of property by the payee spouse or if both spouses are members of the same household at the time of payment. Prohibits payments of alimony to the estate of a deceased spouse. Characterizes a payment to a spouse as alimony if such payment is one of a series of cash payments where it is reasonable to expect that 50 percent of such payments will be made more than one year after the date of the first payment. Requires a spouse paying alimony to furnish the Internal Revenue Service with the taxpayer identification number of the spouse receiving alimony payments. Imposes a $50 fine for each failure to provide such information. Allocates the personal tax exemption for a dependent child of divorced parents to the parent having custody unless such custodial parent signs a written declaration that he or she will not claim the child as a dependent. Requires that such written declaration be attached to the income tax return of the noncustodial parent claiming the tax exemption. Treats a child of divorced parents as the dependent child of either parent for purposes of the medical expense deduction. Applies these tax rules to taxable years beginning after 1983. Permits a noncustodial parent to continue to claim a tax exemption for a dependent child in cases where such parent entered into an agreement with the custodial parent prior to January 1, 1984 which allocated the exemption to the noncustodial parent, and the noncustodial parent contributes at least $600 to the child's support for the year. Revises requirements relating to the exemption from liability of spouses who have no knowledge of substantial understatements of tax liability of their spouses with respect to jointly reported items of income and community property. Allows an estate tax deduction for transfers of property in settlement of marital or property rights not subject to the gift tax. Provides that income from sheltered workshops shall not be taken into account for purposes of determining the dependency exemption. Subtitle C: Revision of At-Risk Rules - Amends the Internal Revenue Code to revise the at-risk rules on the investment tax credit. Reduces the credit base of property eligible for investment tax credit treatment by the amount of nonqualified nonrecourse financing with respect to such property. Defines "nonqualified nonrecourse financing" (financing in which the taxpayer is protected against loss) as any nonrecourse financing which is not qualified commercial financing. Defines "qualified commercial financing" as any financing with respect to property if: (1) such property is not acquired from a related party (family, controlled corporations etc.); (2) the amount of the nonrecourse financing does not exceed 80 percent of the credit base of the property; and (3) such financing is obtained from certain business lenders or from any Federal, State, or local government. Sets forth special rules for the treatment of S corporation shareholders and partners with respect to the at-risk rules. Provides rules for the treatment of subsequent increases and decreases in nonqualified nonrecourse financing with respect to investment tax credit property. Excludes the active businesses of qualified C corporations from at-risk rules. Defines "qualified C corporation." Subtitle D: Estate Tax Provisions - Amends the Internal Revenue Code to provide a permanent rule for the reformation of charitable split interest instruments for purposes of meeting the requirement for the tax deduction for gifts of split interests to charity. Requires that the charitable and noncharitable interests in the split interest trust generally remain the same before and after the reformation. Treats the premature death of an income beneficiary of a charitable remainder trust as the equivalent of a reformation. Permits the executor of an estate to elect an alternate date for valuing estate property only if such election will result in a decrease of the value of the gross estate and the amount of estate tax liability. Permits the executor to elect an alternate valuation date on a late filed return. Subtitle E: Foreign Tax Provisions - Amends the Internal Revenue Code to define "resident alien" for U.S. tax purposes. Treats any individual as a resident alien if such individual: (1) is a lawful permanent resident of the United States at any time during the calendar year; or (2) is present in the United States for a substantial period of time (at least 183 days during a three year period weighted toward the present year - "substantial presence test"). Exempts an individual from the application of the substantial presence test if such individual is present in the United States for fewer than 183 days and establishes that he has a closer connection with a foreign country than with the United States. Treats foreign government-related individuals, teachers or trainees, or students as nonresident aliens even if they meet the substantial presence test criteria. Authorizes the Secretary to require aliens who claim exemption from the substantial presence test to file statements explaining the basis for their exemption. Prohibits a married couple, both of whom are nonresident aliens, from using community property laws to split the U.S. earned income of one spouse for purposes of computing U.S. tax liability. Eliminates rules which attribute ownership of foreign personal holding company stock held by a nonresident alien to the alien's U.S. blood relatives. Treats stock of a foreign personal holding company owned by a partnership, estate, or trust which is not a U.S. shareholder, or a foreign corporation as being owned proportionately by its partners, beneficiaries, or shareholders, for purposes of the foreign personal holding company rules. Provides that shareholders of controlled foreign corporations will not be subject to taxation at ordinary income rates on previously taxed distributions from such corporations with respect to accumulated earnings and profits of such corporations. Prohibits the crediting of foreign taxes of a controlled foreign corporation that another U.S. taxpayer has already credited. Provides that earnings and profits accumulated by a foreign corporation while controlled by U.S. shareholders are subject to ordinary income treatment whether its owners controlled it directly or indirectly. Coordinates the taxation of foreign corporations in cases where there is a conflict between the application of the foreign personal holding company rules and the controlled foreign corporation rules of the Internal Revenue Code. Treats a foreign corporation as a domestic corporation, for income tax purposes, where the foreign corporation and its domestic counterpart are stapled entities. Defines "stapled entities" as any group of two or more entities if more than 50 percent in value of the beneficial ownership in each of such entities consist of stapled interest. Provides rules for determining controlled corporation status and stock ownership of stapled entities, and whether a stapled entity is a real estate investment trust or a regulated investment company. Subtitle F: Miscellaneous Treasury Administrative Provisions - Amends the Internal Revenue Code to require the submission of reports on domestic international sales corporations and possessions corporations on a biennial basis. Requires the submission of the international boycott report every four years. Revises requirements for determining which taxpayers will be included in the high income taxpayer report. Repeals the $1,000,000 limitation on the working capital fund in the Department of the Treasury. Increases the limitation on the real property redemption revolving fund to $10,000,000 (such fund is used by the Internal Revenue Service in exercising redemption rights upon sale of property on which the IRS has a lien). Removes the $1,000,000 limitation on special authority to dispose of obligations. Authorizes the Secretary to accept gifts and bequests of property for purposes of facilitating the work of the Department of the Treasury. Extends the period of court review of IRS jeopardy assessments in cases where the IRS has not been properly notified of court proceedings. Extends the period of time during which additional tax shown on an amended return may be assessed. Allows the placement of a lien on guaranteed drafts issued by financial institutions. Allows the disclosure of windfall profit tax information to State tax agencies. Repeals the occupational tax on the manufacturers of stills and condensers. Requires notice of the manufacture and set up of stills. Allows the disclosure of alcohol fuel producers to administrators of State alcohol laws. Repeals the stamp requirement for distilled spirits. Subtitle G: Tax Court Provisions - Permits taxpayers to be represented in Tax Court by certified public accountants or enrolled agents (authorized to practice before the Internal Revenue Service) in small tax cases. Increases the jurisdictional limit for small tax cases from $5,000 to $10,000. Increases the maximum annuities receivable by dependent survivors of deceased Tax Court judges from $900 per year per family to $4,644 per year per family. Specifies types of cases which the chief judge of the Tax Court may assign to commissioners, subject to review and final decision by a Tax Court judge. Renames commissioners of the Tax Court as special judges. Empowers the Tax Court to take action necessary to prevent the disclosure of trade secrets and other confidential information. Subtitle H: Simplification of Income Tax Credits - Tax Credit Simplification Act of 1983 - Revises provisions of the Internal Revenue Code relating to income tax credits. Groups all credits into nonrefundable personal credits (allowable first against tax liability), foreign tax credit, orphan drug credit and fuel production credit, nonrefundable credits, and business related credits. Combines business credits and the investment tax credit into one general business credit. Establishes the general business credit at 100 percent of the first $25,000 of tax liability and 85 percent of the remaining tax liability. Permits a three year carryback and a 15 year carryforward of unused business credits. Subtitle I: Miscellaneous Simplification Provisions - Allows the tax-free rollover into an individual retirement account of partial distributions from qualified plans or tax-sheltered annuity contracts. Revises rules concerning the tax-treatment of certain transactions between related parties. Extends ordinary loss treatment to losses incurred on the disposal of preferred stock of a small business corporation. (Present law restricts such treatment to common stock.) Allows a medical care income tax deduction for lodging away from home where such lodging is primarily for and essential to medical care. Requires the Secretary of the Treasury to submit to the Congress a study of the advisability of replacing the current income tax system with a simplified gross income tax. Subtitle J: Repeal of Certain Obsolete Provisions - Repeals provisions of the Internal Revenue Code relating to qualified bond purchase plans and retirement bonds with respect to bonds issued after December 31, 1983. Repeals rules relating to gains from the disposition of property used in farming where farm losses offset nonfarm income. Title V: Tax Treatment of Fringe Benefits - Permanent Tax Treatment of Fringe Benefits Act of 1983 - Excludes from gross income any fringe benefit which qualifies as a: (1) no-additional-cost service; (2) qualified employee discount; (3) working condition fringe; or (4) de minimis fringe. Provides definitions and sets forth special rules for such tax exclusion. Limits the income tax deduction for operating on-premises employee recreational facilities. Allows an employer to elect to include the cost of such recreational facilities in employee income in lieu of the disallowance of such income tax deduction. Excludes from gross income reductions in tuition provided by an employer to employees. Title VI: Technical Corrections - Technical Corrections Act of 1983 - Subtitle A: Amendments Related to the Tax Equity and Fiscal Responsibility Act of 1982 - Makes technical corrections to provisions relating to individual taxpayers. Revises the definition of regular tax. Limits the special election for intangible drilling and development costs to wells located in the United States. Revises the newspaper and periodical circulation expense tax preference provisions by providing a three-year amortization period (rather than the ten-year period) for individuals to amortize circulation expenses. Makes technical corrections to provisions primarily relating to businesses. Limits the investment tax credit allowed for mineral exploration and development costs to deposits located in the United States. Revises rules relating to corporate preference items relating to capital gains and cost depletion. Revises the definition of interest on debt to carry tax-exempt obligations acquired after December 31, 1982. Requires the adjustment in the bases of an interest in a partnership or an S corporation to take into account the amount of any investment tax credit taken. Includes real property held by a cooperative housing corporation and used for dwelling purposes as property not eligible for the real property construction period income tax deduction. Sets forth rules for pass thru entities in the case of corporate distributions. Redefines "purchase" for purposes of certain stock purchases which are treated as asset acquisitions. Provides that rules relating to the recognition of gain or loss on sales or exchanges in connection with certain liquidations shall apply where a target corporation has adopted a plan for complete liquidation. Authorizes the Secretary of the Treasury to disallow deductions, credits, or other allowances in the case of certain liquidations after qualified stock purchases if the principal purpose of such liquidation is the evasion or avoidance of income tax. Sets forth rules for determining the basis of assets of a target corporation involved in a corporate acquisition. Sets forth rules for determining the amount constituting dividends in the case of redemptions through the use of related corporations. Provides that any assumption of a liability shall not be treated as a distribution of property in the case of distributions incident to the formation of bank holding companies. Makes technical corrections to certain pension provisions. Revises rules relating to actuarial adjustments for retirment income benefits. Revises rules relating to the treatment of loans to participants from qualified pension plans. Increases the amount of the deduction for simplified employee pensions. Revises rules relating to the treatment of self-employed individuals for exclusion of employee's death benefits. Revises the treatment of simplified employee pensions. Revises the definitions of "key employee" and "top heavy plan" for purposes of required distributions before death. Permits distributions to be made to a beneficiary of a participant if the beneficiary is a dependent who is under age 22 or is permanently and totally disabled. Delays the effective date for special rules related to government plans. Delays the effective date for provisions related to inherited individual retirement plans. Allows the award of court costs and attorney's fees for cases in the United States Claims Court. Sets forth penalties for failure to give notice to recipients of certain pension distributions. Subtitle B: Amendments Related to Subchapter S Revision Act of 1982, Etc. - Provides for the nonrecognition of gain or loss on the complete liquidation of a subchapter S corporation or on the distribution of certain stock in a reorganization. Allows an election to not have new passive income rules apply during 1982. Treats a subchapter S corporation as a partnership for purposes of constructive ownership of stock. Sets forth rules for elections for certain short taxable years. Revises rules relating to the ownership of stock in certain inactive corporations. Revises the definition of a qualified subchapter S trust. Subtitle C: Amendments Relating to Highway Revenue Act of 1982 - Provides that the value of used components shall not be taken into account in determining price for purposes of the retail sales tax on heavy trucks and trailers. Provides that the excise tax on gasoline shall apply to gasohol. Provides for floor stocks refunds for tires taxed at lower rate after January 1, 1984. Sets forth rules relating to the overpayments of tax on trucks and tires. Exempts from the retail tax on heavy trucks: (1) camper coaches bodies for self-propelled mobile homes; (2) feed, seed, and fertilizer equipment; (3) ambulances and hearses; (4) concrete mixers; (5) house trailers; (6) trash containers; and (7) rail trailers and rail vans. Exempts from the excise tax on tires any tires with internal wire fastening and tires used on intercity, local, and school buses. Subtitle D: Amendments to Other Laws - Part I: Changes in OASDI, Public Assistance, and Related Provisions of the Social Security Act - Makes certain technical amendments to title II of the Social Security Act (OASDI). Provides that any cost-of-living increase shall be rounded down to the next lower multiple of 10 cents. Part II: Changes in Medicare-Related Provisions of the Social Security Act - Makes certain technical corrections to the medicare provisions of the Social Security Amendments of 1983. Revises rules for the application and implementation of the medicare prospective payment system. Revises rules concerning enrollment and premium penalties with respect to the working aged. Title VII: Tax-Exempt Bond Provisions - Tax Exempt Bond Limitation Act of 1983 - Extends the tax exemption for interest on qualified mortgage bonds to bonds issued prior to January 1, 1989. (Present law limits such exclusion to bonds issued prior to January 1, 1983.) Sets forth reporting requirements for issuers of such bonds. Limits the tax exemption for interest on qualified veterans' mortgage bonds to bonds issued prior to January 1, 1989. Reduces the State ceiling for qualified mortgage bonds by the aggregate amount of qualified veterans' mortgage bonds issued in the State during the preceding taxable year. Provides that limited equity housing cooperatives are eligible, at the election of the cooperative, for tax-exempt financing as multifamily residential rental housing. Allows State and local governments to elect, for any calendar year beginning after 1983, to exchange all or part of their qualified mortgage bond authority for authority to issue mortgage credit certificates (MCCs) to individuals. Allows individuals who hold such MCCs a nonrefundable Federal income tax credits for not more than 50 percent (but not less than 10 percent) of interest on indebtedness incurred to finance the acquisition (or qualified rehabilitation or improvement) of qualified principal residences. Sets forth definitions, special rules, and requirements for the administration of a MCC program. Subtitle B: Private Activity Bonds - Imposes a ceiling on the maximum amount of industrial development bonds (IDBs) and student loan bonds that each State may issue during any calendar year. Sets the amount of such ceiling at $150 for every individual who is a resident of the State. Sets forth rules for the allocation of such limitation among the various governmental units of the State. Denies the tax exemption for interest on certain obligations if the obligation is Federally guaranteed. Sets forth definitions, special rules, and certain exceptions to such denial. Restricts to $40,000,000 the amount of small issue IDBs that can be issued for a particular beneficiary of IDBs. Provides that IDBs cannot be used for the purchase or acquisition of land or existing facilities. Exempts from such prohibition: (1) the substantial rehabilitation of existing facilities; and (2) the acquisition of farm land by a first time farmer. Denies the tax exemption on interest of a IDB if any portion of the proceeds of the IDB are to be used to provide any airplane, skybox, or other private luxury box, any facility primarily used for gambling, or any store the principal business of which is the sale of alcoholic beverages for consumption off premises. Extends certain rules relating to tax-exempt obligations to bonds which are described in Federal laws other than the Internal Revenue Code. Requires property financed with tax-exempt IDBs to be depreciated using the straight-line method, except for projects for residential rental property. Requires the aggregation of IDB issues for a single project. Extends mortgage subsidy bond arbitrage rules to industrial development bonds and student loan bonds. Increases from $10,000,000 to $15,000,000 the amount of capital expenditures not taken into account where there is an urban development action grant. Specifies that the public approval requirement shall be met in the case of IDBs issued to finance a public airport where the governmental unit which is the owner or operator of the airport. Subtitle C: Obligations of Certain Educational Organizations - Grants tax-exempt status to the obligations issued by a specified university. Title VIII - Miscellaneous Revenue Matters - Allows capital gain treatment for a specified portion of the gain on the sale of condominium units converted from existing structures. Provides that the payment of gift tax by a donee with respect to gifts made before March 4, 1981, would not result in income to the donor whose gift tax liability was discharged. Allows a casualty loss deduction where the taxpayer is ordered to demolish or relocate a residence in an area declared to be a disaster area. Revises the definition of a foreign investment company to include any foreign corporation that is engaged primarily in the business of investing, reinvesting, or trading in securities, commodities, or any interest in commodities or securities, at a time when 50 percent or more of the total combined voting power or value of stock is held directly or indirectly by U.S. persons. Extends the accumulated earnings tax to U.S.-owned foreign corporations. Revises the definition of offsetting position stock to mean any stock of a corporation formed or availed of to take positions in personal property which offset positions taken by shareholders. Applies cash or deferred arrangement rules to pre-ERISA money purchase plans. Title IX - Social Security Disability Benefits Reform - Social Security Disability Benefits Reform Act of 1983 - Subtitle A: Standards of Disability - Amends title II (Old Age, Survivors and Disability Insurance) of the Social Security Act to provide that an individual who is receiving disability benefits or child, widow's or widower's insurance benefits based on disability may be determined not to be entitled to such benefits only if there is substantial evidence: (1) there has been medical improvement in the individual's impairment so that the individual can engage in substantial gainful activity; (2) the individual can engage in substantial activity as a result of advances in medical or vocational therapy or technology; or (3) on the basis of new or improved diagnostic-techniques, the individual's impairment is not considered as disabling as it was at the time of the most recent prior disability determination and the individual can engage in substantial gainful activity. Requires the Secretary of Health and Human Services to conduct a study, in conjunction with the National Academy of Sciences, with respect to the use of subjective evidence of pain in making disability determinations and to submit the study results to specified congressional committees. Requires the Secretary to consider the combined effect of all of an individual's impairments in determining whether such individual is unable to engage in substantial gainful activity. Subtitle B: Disability Determination Process - Requires the Secretary to revise the criteria under the category "Mental Disorders" in the "Listing of Impairments" in effect under part 404 of title 20 of the Code of Federal Regulations which are used to make individualized determinations of disability for purposes of determining eligibility for disability benefits under title II of the Social Security Act. Prohibits the Social Security Administration from carrying out continuing eligibility reviews with respect to individuals previously determined to be under a disability due to mental impairment until such revisions have been established by final regulation. Makes such prohibition inapplicable in any case involving fraud or where an individual is engaged in substantial gainful activity. Sets forth requirements for the redetermination of disability determinations made after the enactment of this Act and before the date on which the Secretary's revisions are established by final resolution. Provides that an initial disability determination by the Secretary or by a State agency which is unfavorable to a disability benefit applicant shall remain pending until after notice and opportunity for review. Requires that such a determination contain a statement of the case which indicates the basis of the disability determination, the right to a review, and the right to submit additional medical evidence before such review. Entitles the applicant or the applicant's spouse, divorced spouse, surviving divorced spouse, surviving spouse, surviving divorced mother, child, or parent to a review of a pending disability determination upon request and upon a showing that his or her rights may be prejudiced by such determination. Sets forth procedural requirements with respect to such a review. Requires the Secretary or the State agency to affirm or modify a pending disability determination on the basis of such a review. Provides that an initial decision by the Secretary as to an individual's eligibility for disability benefits which is based upon an initial disability determination and which is unfavorable to such individual shall contain a statement of the case which indicates the basis of such decision, the individual's right to a hearing, and the individual's right to submit additional evidence before or at such hearing. Entitles an individual who is dissatisfied with an initial decision by the Secretary to judicial review. Requires the Secretary to conduct demonstration projects in at least five States implementing the amendments made by this Act. Requires the Secretary to report to specified congressional committees on such projects. Removes certain time restrictions on the continued payment of disability benefits during the appeal process. Requires the Secretary to study and report to specified congressional committees on: (1) the effect of the continued payment of benefits during the appeal process upon the expenditures of the Federal Disability Insurance Trust Fund, the Federal Old-Age and Survivors Trust Fund, the Federal Hospital Insurance Trust Fund, and the Federal Supplementary Medical Insurance Trust Fund; and (2) the rate of appeals to administrative law judges of unfavorable disability benefit entitlement determinations. Provides that a disability determination in the case of an individual with a mental impairment shall be made only after a qualified psychiatrist or psychologist employed by the State agency or the Secretary has made the proper medical evaluation. Requires the Secretary to prescribe standards with respect to consultative examinations which must be obtained for disability determinations. Subtitle C: Miscellaneous Provisions - Provides for the application of Federal rulemaking and administrative procedure requirements to disability determinations under title II of the Social Security Act. Amends title VII (Administration) of such Act to specify court orders by a U.S. court of appeals with which the Secretary and the Department of Health and Human Services must comply, unless there is a review by the U.S. Supreme Court. Expands the types of cases with respect to which States may be reimbursed by the Secretary for the costs of furnishing vocational rehabilitation services. Establishes in the Department of Health and Human Services an Advisory Council on the Medical Aspects of Disability, which shall advise and make recommendations to the Secretary on disability standards, policies, and procedures. Terminates the Council on December 31, 1985. Amends title VII of the Social Security Act to require that each report by the Secretary to Congress on the administration of the Social Security Act contain a description of the current status of the disability insurance program under title II of such Act. Requires the Secretary to establish enough attorney adviser positions in the Department of Health and Human Services to insure adequate opportunity for career advancement for attorneys in the Social Security Administration. Requires that such attorneys be given qualifying experience for appointment to administrative law judge positions. Requires the Secretary to report to specified congressional committees with respect to complying with these requirements. Title X: Medicare Budget Reconciliation Amendments - Medicare Budget Reconciliation Amendments of 1983 - Title I: Medicare Reconciliation Amendments - Part A: Payment and Coverage-Related Changes - Requires the establishment of a fee schedule for all laboratory services except those for hospital inpatients. Bases payment on such fee schedule unless the actual charge is lower. Allows such schedule to be initially established on a carrier or regional basis. Requires the Secretary to develop and implement a national fee schedule within three years after enactment of this Act. Makes permanent existing temporary provisions which fix the proportion of the part B medicare costs financed by enrollees at 25 percent of program costs. Provides medicare coverage of hepatitis B vaccine for medicare beneficiaries when the vaccine is administered in a hospital or renal dialysis facility. Requires the Secretary to issue, before February 1, 1984, revisions to the current guidelines on the frequency of transtelephonic monitoring of implanted pacemakers which are reasonable and necessary. Limits payments under medicare for such procedure if the Secretary has failed to revise such guidelines by the specified date. Requires the Secretary, by regulation, to deny coverage under medicare for debridement of mycotic toenails if performed more frequently than once every 60 days, unless the medical necessity for more frequent treatment is documented by a physician. Allows payments to hospitals under part A of medicare for the operation of mobile intensive care units if certain conditions are met. Part B: Miscellaneous Administrative Changes - Provides for the appointment by the President (rather than the Secretary of Health and Human Services) of the Administrator of the Health Care Financing Administration. Sets forth the pay level for the Administrator. Permits limited provider representation on peer review organizations (PRO's). Permits a physician who has a financial interest in an agency which is a sole community home health agency to carry out the certification and plan-of-care functions for patients who will receive services from the agency. Repeals certain special tuberculosis treatment requirements. Allows part B payments to be made to a health benefits plan, if the beneficiary agrees, and if the physician or supplier accepts the plan's payment as payment in full. Includes podiatrists in the definition of "physician" for outpatient physical therapy services. Includes podiatrists and dentists in the definition of "physician" for outpatient ambulatory surgery. Allows physical therapists to establish medicare qualified plans for physical therapy. Increases from $10,000 to $50,000 the minimum amount of any agreement between a medicare provider and a subcontractor before the Secretary or Comptroller General must have access to the subcontractor's records. Establishes the statutory right of medicare to recover directly from a liable third party, if the beneficiary himself does not do so, and to pay a beneficiary, or on the beneficiary's behalf, pending recovery where such third party is not expected to pay promptly. Extends the Secretary's authority to rely on accrediting organizations in determining whether rural health clinics, laboratories, clinics, rehabilitation agencies, including outpatient rehabilitation facilities, and public health agencies meet medicare requirements. Sets forth rules for the confidentiality of accreditation surveys. Limits to 30 days coverage for services furnished by a home health agency whose agreement has been terminated. Extends the Secretary's authority to exclude from medicare participation (and to direct State agencies to exclude from medicaid participation) any entity in which ownership or controlling interest is held by a person convicted of program related criminal offenses, or in which an officer, director, agent, or managing employee was convicted of such criminal offense. Eliminates the Health Insurance Benefits Advisory Council. Requires the Secretary to designate one 30-day period in which all health maintenance organizations (HMO's) in an area participating in medicare must have an open enrollment period. Specifies a deadline of July 1, 1985, for a report to Congress on including payment for physicians' services to hospital inpatients in DRG payment amounts. Provides intermediate sanctions for noncompliance with requirements for end-stage renal disease facilities. Removes the costs of nurse anesthetists from DRG-based payments. Sets forth rules for the determination of hospital area wage indexes. Revises the definition of bona fide emergency services for purposes of the limitations on payment for hospital outpatient services. Delays from October 1, 1983, to April 1, 1984, the effective date for single-rate for skilled nursing facilities. Title XI: Trade Adjustment Assistance - Amends the Trade Act of 1974 to begin the period for the 26-week additional trade readjustment allowances with the first week the worker is in training if that training has not been approved until after the last week of entitlement to basic benefits. Increases the maximum job search allowance from $600 to $800. Increases the maximum relocation allowance from $600 to $800. Extends eligibility for industry-wide technical assistance to industries in which a substantial number of workers have been certified for trade adjustment assistance. Increases from $2,000,000 to $10,000,000 the amount of assistance that can be provided annually to a single industry.

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6 official files

• Public Law (PDF)

  Public Law · EN · 19 July 1984

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• Conference report filed in House

  summary · EN · 26 June 1984

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• Passed House amended

  summary · EN · 11 April 1984

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• Reported to House amended, Part II

  summary · EN · 5 March 1984

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• Reported to House with amendment(s)

  summary · EN · 21 October 1983

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• Introduced in House

  summary · EN · 20 October 1983

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