CUT Loopholes Act
Latest action · Feb 7, 2012 Read twice and referred to the Committee on Finance.
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.
- IntroducedFeb 7, 2012
- Passed SenateNot reached
- Passed HouseNot reached
- To the PresidentNot reached
- Became lawNot reached
Summary
Cut Unjustified Tax Loopholes Act or the CUT Loopholes Act - Authorizes the Secretary of the Treasury to impose restrictions on foreign jurisdictions or financial institutions operating in the United States that are of primary 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; (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 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; (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); (9) limit the employer tax deduction for stock options granted to employees to the value of such options as recorded on the employer's books at the time such options were granted; and (10) apply the $1 million limitation on the employer tax deduction for employee remuneration to stock option compensation.
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 holdings or transactions 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 private and venture capital 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.
Imposes new restrictions on U.S. corporations and other entities with foreign income with respect to: (1) tax deductions allocable to deferred foreign income, (2) the recalculation of foreign income taxes, (3) intangible property transferred overseas, and (4) tax evasion activities by U.S. corporations reincorporating in a foreign country.
Cosponsors 3
Members who signed on, in the order they did. Signatures ran from Feb 7, 2012 to Mar 5, 2012, with 1 there on the day it was introduced.
| Seat | Cosponsor | Signed on | |
|---|---|---|---|
| D-ND | Kent Conrad | Original | Feb 7, 2012 |
| D-AK | Mark Begich | Feb 16, 2012 | |
| D-RI | Sheldon Whitehouse | Mar 5, 2012 |
Actions 3
Everything that happened, newest first.
- Feb 7, 2012Introduced in Senate
- Feb 7, 2012Read twice and referred to the Committee on Finance.
- Feb 7, 2012Sponsor introductory remarks on measure. (CR S389-390)
Related bills 3
Companion bills and other measures the record links to this one.
| Bill | Title | Relationship | Latest action |
|---|---|---|---|
| S 1346 | Stop Tax Haven Abuse Act | Related bill | Jul 12, 2011 |
| S 1375 | Ending Excessive Corporate Deductions for Stock Options Act | Related bill | Jul 14, 2011 |
| HR 2669 | Stop Tax Haven Abuse Act | Related bill | Aug 22, 2011 |
Subjects
Assigned by the Library of Congress. Policy area: Taxation.
- Accounting and auditing
- Administrative law and regulatory procedures
- Administrative remedies
- Bank accounts, deposits, capital
- Banking and financial institutions regulation
- Civil actions and liability
- Congressional oversight
- Corporate finance and management
- Credit and credit markets
- Department of the Treasury
- Evidence and witnesses
- Financial services and investments
- Foreign and international banking
- Foreign and international corporations
- Fraud offenses and financial crimes
- Income tax credits
- Income tax deductions
- Income tax rates
- Jurisdiction and venue
- Lawyers and legal services
- Legal fees and court costs
- Securities
- Securities and Exchange Commission (SEC)
- Tax administration and collection, taxpayers
- Taxation
- Taxation of foreign income
- Wages and earnings
Text 1
Each version as it was printed, newest first.
- Feb 7, 2012Introduced in Senate
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.