HR 2669 · 112th Congress 2011–2013, ended

Stop Tax Haven Abuse Act

Introduced Jul 27, 2011 Originated House Sponsor Lloyd Doggett D-TX

Latest action · Aug 22, 2011 Referred to the Subcommittee on Capital Markets and Government Sponsored Enterprises.

Progress

Where this bill reached, and when. A stage with no date was not reached; one that failed a vote and later carried shows the date it carried.

IntroducedJul 27, 2011
Passed HouseNot reached
Passed SenateNot reached
To the PresidentNot reached
Became lawNot reached

Summary

Stop Tax Haven Abuse Act - Authorizes the Secretary of the Treasury to impose restrictions on foreign jurisdictions or financial institutions operating in the United States that are of prime money laundering concern or that impede U.S. tax enforcement.

Amends the Internal Revenue Code to: (1) establish a rebuttable presumption against the validity of transactions by institutions that do not comply with reporting requirements under the Foreign Account Tax Compliance Act (FATCA), (2) treat certain foreign corporations managed and controlled primarily in the United States as domestic corporations for tax purposes, (3) require tax withholding agents and financial institutions to report certain information about beneficial owners of foreign-owned financial accounts, (4) treat credit default swap payments sent offshore as taxable U.S. source income, (5) allow the use of tax return information to evaluate foreign financial account reports, (6) increase penalties for promoting abusive tax shelters and for aiding and abetting the understatement of tax liability, (7) prohibit tax advisor contingent fee agreements for obtaining a tax savings or benefit, and (8) impose additional requirements for third party summonses used to obtain information in tax investigations that do not identify the person with respect to whose liability the summons is issued (i.e., John Doe summons).

Amends the Securities Exchange Act of 1934 to: (1) require corporations registered with the Securities and Exchange Commission (SEC) to report annually, on a country-by country basis, on employees, sales, financing, tax obligations, and tax payments; and (2) authorize a fine of up to $1 million for failure to disclose any holding or transaction involving equity or debt instruments known to involve a foreign entity that would otherwise be subject to disclosure requirements.

Requires the Secretary to publish a proposed rule in the Federal Register requiring unregistered investment companies, including hedge funds or private equity funds, to establish anti-money laundering programs and submit suspicious activity reports.

Extends anti-money laundering requirements to persons engaged in the business of forming new businesses or other legal entities.

Requires federal banking agencies and the SEC to develop examination techniques to detect and prevent abusive tax shelter activities or the aiding or abetting of tax evasion by financial institutions.

Requires the Secretary to: (1) disclose tax return information to federal financial regulators for purposes of tax shelter investigations; (2) disclose to Congress documents relating to a determination to grant, deny, revoke, or restore the tax-exempt status of an organization; and (3) expand the standards applicable to tax practitioners for issuing written advice on transactions which have a potential for tax avoidance or evasion.

Cosponsors 77

Members who signed on, in the order they did. Signatures ran from Jul 27, 2011 to Dec 13, 2012; 53 are original cosponsors, there from the day it was introduced.

Seat	Cosponsor		Signed on
D-TX	Al Green	Original	Jul 27, 2011
D-CA	Barbara Lee	Original	Jul 27, 2011
D-OH	Betty Sutton	Original	Jul 27, 2011
D-NJ	Bill Pascrell, Jr.	Original	Jul 27, 2011
D-CA	Bob Filner	Original	Jul 27, 2011
D-IL	Bobby L. Rush	Original	Jul 27, 2011
D-CA	Brad Sherman	Original	Jul 27, 2011
D-PA	Chaka Fattah	Original	Jul 27, 2011
D-MD	Chris Van Hollen	Original	Jul 27, 2011
D-IL	Danny K. Davis	Original	Jul 27, 2011
D-NJ	Donald M. Payne	Original	Jul 27, 2011
D-MD	Donna F. Edwards	Original	Jul 27, 2011
D-OR	Earl Blumenauer	Original	Jul 27, 2011
D-TX	Eddie Bernice Johnson	Original	Jul 27, 2011
D-MA	Edward J. Markey	Original	Jul 27, 2011
D-MD	Elijah E. Cummings	Original	Jul 27, 2011
D-MO	Emanuel Cleaver	Original	Jul 27, 2011
D-CA	Fortney Pete Stark	Original	Jul 27, 2011
D-MI	Gary C. Peters	Original	Jul 27, 2011
D-TX	Gene Green	Original	Jul 27, 2011
D-CA	George Miller	Original	Jul 27, 2011
D-WI	Gwen Moore	Original	Jul 27, 2011
D-GA	Henry C. "Hank" Johnson, Jr.	Original	Jul 27, 2011
D-MA	James P. McGovern	Original	Jul 27, 2011
D-VA	James P. Moran	Original	Jul 27, 2011
D-IL	Janice D. Schakowsky	Original	Jul 27, 2011
D-NY	Jerrold Nadler	Original	Jul 27, 2011
D-WA	Jim McDermott	Original	Jul 27, 2011
D-KY	John A. Yarmuth	Original	Jul 27, 2011
D-CT	John B. Larson	Original	Jul 27, 2011
D-MI	John Conyers, Jr.	Original	Jul 27, 2011
D-MI	John D. Dingell	Original	Jul 27, 2011
D-MA	John F. Tierney	Original	Jul 27, 2011
D-GA	John Lewis	Original	Jul 27, 2011
D-CA	Karen Bass	Original	Jul 27, 2011
D-MN	Keith Ellison	Original	Jul 27, 2011
D-CA	Linda T. Sánchez	Original	Jul 27, 2011
D-NY	Louise McIntosh Slaughter	Original	Jul 27, 2011
D-OH	Marcy Kaptur	Original	Jul 27, 2011
D-NY	Maurice D. Hinchey	Original	Jul 27, 2011
D-HI	Mazie K. Hirono	Original	Jul 27, 2011
D-NY	Paul Tonko	Original	Jul 27, 2011
D-OR	Peter A. DeFazio	Original	Jul 27, 2011
D-VT	Peter Welch	Original	Jul 27, 2011
D-AZ	Raúl M. Grijalva	Original	Jul 27, 2011
D-NJ	Robert E. Andrews	Original	Jul 27, 2011
D-CT	Rosa L. DeLauro	Original	Jul 27, 2011
D-NJ	Rush Holt	Original	Jul 27, 2011
D-CA	Sam Farr	Original	Jul 27, 2011
D-MI	Sander M. Levin	Original	Jul 27, 2011
D-TX	Sheila Jackson Lee	Original	Jul 27, 2011
D-NV	Shelley Berkley	Original	Jul 27, 2011
D-WI	Tammy Baldwin	Original	Jul 27, 2011
D-IA	David Loebsack		Aug 1, 2011
D-OH	Marcia L. Fudge		Aug 1, 2011
D-FL	Theodore E. Deutch		Aug 1, 2011
D-IA	Bruce L. Braley		Feb 17, 2012
D-RI	James R. Langevin		Feb 17, 2012
D-IL	Jerry F. Costello		Feb 17, 2012
D-IL	Jesse L. Jackson, Jr.		Feb 17, 2012
D-CA	John Garamendi		Feb 17, 2012
D-PA	Robert A. Brady		Feb 17, 2012
D-NJ	Steven R. Rothman		Feb 17, 2012
D-IL	Daniel Lipinski		Mar 8, 2012
D-RI	David N. Cicilline		Mar 8, 2012
D-MI	Hansen Clarke		Mar 8, 2012
D-MA	John W. Olver		Mar 8, 2012
D-CA	Judy Chu		Mar 8, 2012
D-MA	Michael E. Capuano		Mar 8, 2012
D-MA	William R. Keating		Mar 8, 2012
D-NJ	Frank Pallone, Jr.		Sep 21, 2012
D-IL	Luis V. Gutierrez		Sep 21, 2012
D-NM	Ben Ray Luján		Dec 13, 2012
D-ME	Chellie Pingree		Dec 13, 2012
D-CO	Diana DeGette		Dec 13, 2012
D-IA	Leonard L. Boswell		Dec 13, 2012
D-MA	Niki Tsongas		Dec 13, 2012

Committees 2

Where it was sent and what each committee and subcommittee did with it, in order.

Chamber	Committee	What it did
House	Ways and Means Committee	Referred Jul 27, 2011
House	Financial Services Committee	Referred Jul 27, 2011
	Consumer Protection and Financial Institutions Subcommittee	Referred Aug 22, 2011
	Capital Markets Subcommittee	Referred Aug 22, 2011

Actions 4

Everything that happened, newest first.

Aug 22, 2011Referred to the Subcommittee on Financial Institutions and Consumer Credit.
Aug 22, 2011Referred to the Subcommittee on Capital Markets and Government Sponsored Enterprises.
Jul 27, 2011Introduced in House
Jul 27, 2011Referred to the Committee on Ways and Means, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Research

What has been written about this bill: committee reports, cost estimates, the sponsor’s authority statement, printed hearings and the Congressional Research Service’s work.

Constitutional authority

Congress has the power to enact this legislation pursuant to the following: This bill is enacted pursuant to Clause 1 of Section 8 of Article I of the United States Constitution.

The sponsor’s statement, as printed in the page H5661.

CRS reports 1

Congressional Research Service work that CRS links to this bill or the law it became, newest first.

Cite it 1

Products on other subjects that cite it, usually among other measures.

Product	Title	Kind	Published
R42927	An Analysis of Where American Companies Report Profits: Indications of Profit Shifting Archived	Report	Jan 18, 2013

Related bills 2

Companion bills and other measures the record links to this one.

Bill	Title	Relationship	Latest action
S 1346	Stop Tax Haven Abuse Act	Identical bill	Jul 12, 2011
S 2075	CUT Loopholes Act	Related bill	Feb 7, 2012

Titles 2

Every title it has carried, official and short, at each stage.

Official Title as Introduced: To restrict the use of offshore tax havens and abusive tax shelters to inappropriately avoid Federal taxation, and for other purposes.
Short Titles as Introduced: Stop Tax Haven Abuse Act

Subjects

Assigned by the Library of Congress. Policy area: Taxation.

Text 1

Each version as it was printed, newest first.

Jul 27, 2011Introduced in House

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Everything here is as published by Congress: the summary is the Congressional Research Service's, the action wording is the clerks', and the subjects are the Library of Congress's. How far it got is read from the actions themselves, taking the most recent one of each kind, so a bill that failed a vote and later passed is shown as having passed. Records come from this bill on Congress.gov and govinfo.gov; cost estimates are the Congressional Budget Office's, and the hearings are the printed hearings GovInfo publishes, which can appear months after the hearing.