[House Report 113-643]
[From the U.S. Government Publishing Office]
113th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 113-643
======================================================================
PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 5771) TO AMEND THE
INTERNAL REVENUE CODE OF 1986 TO EXTEND CERTAIN EXPIRING PROVISIONS AND
MAKE TECHNICAL CORRECTIONS, AND FOR OTHER PURPOSES, AND PROVIDING FOR
CONSIDERATION OF THE BILL (H.R. 647) TO AMEND THE INTERNAL REVENUE CODE
OF 1986 TO PROVIDE FOR THE TAX TREATMENT OF ABLE ACCOUNTS ESTABLISHED
UNDER STATE PROGRAMS FOR THE CARE OF FAMILY MEMBERS WITH DISABILITIES,
AND FOR OTHER PURPOSES
_______
December 2, 2014.--Referred to the House Calendar and ordered to be
printed
_______
Mr. Sessions, from the Committee on Rules,
submitted the following
R E P O R T
[To accompany H. Res. 766]
The Committee on Rules, having had under consideration
House Resolution 766, by a nonrecord vote, report the same to
the House with the recommendation that the resolution be
adopted.
SUMMARY OF PROVISIONS OF THE RESOLUTION
The resolution provides for consideration of H.R. 5771, the
Tax Increase Prevention Act of 2014, under a closed rule. The
resolution provides one hour of debate equally divided and
controlled by the chair and ranking minority member of the
Committee on Ways and Means. The resolution waives all points
of order against consideration of the bill. The resolution
provides that the amendment printed in part A of this report
shall be considered as adopted, and the bill, as amended, shall
be considered as read. The resolution waives all points of
order against provisions in the bill, as amended. The
resolution provides one motion to recommit with or without
instructions.
Section 2 of the resolution provides for consideration of
H.R. 647, the ABLE Act of 2014, under a closed rule. The
resolution provides one hour of debate equally divided and
controlled by the chair and ranking minority member of the
Committee on Ways and Means. The resolution waives all points
of order against consideration of the bill. The resolution
provides that the amendment in the nature of a substitute
printed in part B of this report shall be considered as
adopted, and the bill, as amended, shall be considered as read.
The resolution waives all points of order against provisions in
the bill, as amended. The resolution provides one motion to
recommit with or without instructions.
The resolution directs the Clerk to, in the engrossment of
H.R. 5771, add the text of H.R. 647, as passed by the House, as
a new matter at the end of H.R. 5771 and make conforming
modifications in the engrossment.
EXPLANATION OF WAIVERS
The waiver of all points of order against consideration of
H.R. 5771 includes a waivers of the following:
Section 302(f) of the Congressional Budget Act of
1974, which prohibits consideration of legislation providing
new budget authority in excess of a committee's 302(a)
allocation;
Section 311 of the Congressional Budget Act of
1974, which prohibits consideration of legislation that would
cause revenues to be less than the level of total revenues for
the first fiscal year or for the total of that first fiscal
year and the ensuing fiscal years for which allocations are
provided; and
Clause 10 of rule XXI, which prohibits the
consideration of legislation if it has the net effect of
increasing mandatory spending over the five or ten-year period.
The waiver is necessary because the bill increases direct
spending over the five and ten-year periods.
Although the resolution waives all points of order against
provisions in H.R. 5771, as amended, the Committee is not aware
of any points of order. The waiver is prophylactic in nature.
The waiver of all points of order against consideration of
H.R. 647 includes a waiver of section 311 of the Congressional
Budget Act of 1974, which prohibits consideration of
legislation that would cause revenues to be less than the level
of total revenues for the first fiscal year or for the total of
that first fiscal year and the ensuing fiscal years for which
allocations are provided.
Although the resolution waives all points of order against
provisions in H.R. 647, as amended, the Committee is not aware
of any points of order. The waiver is prophylactic in nature.
SUMMARY OF THE AMENDMENT TO H.R. 5771 IN PART A CONSIDERED AS ADOPTED
Camp (MI): Inserts a new section 161, which includes an
extension of credit for alternative fuel vehicle refueling
property and strikes a deadwood provision that is inconsistent
with section 205 of the ABLE Act of 2014 (H.R. 647, as
amended), which modifies the Inland Waterways Trust Fund
financing rate.
SUMMARY OF THE AMENDMENT TO H.R. 647 IN PART B CONSIDERED AS ADOPTED
Crenshaw (FL): Makes changes to H.R. 647, as reported by
the Committee on Ways and Means, that include clarifying and
technical changes, a change to a definition, limitations on
investment direction, bankruptcy protection, and provides
offsets for the bill.
PART A--TEXT OF AMENDMENT TO H.R. 5771 CONSIDERED AS ADOPTED
Page 34, after line 4, insert the following (and conform the
table of contents accordingly):
SEC. 161. EXTENSION OF CREDIT FOR ALTERNATIVE FUEL VEHICLE REFUELING
PROPERTY.
(a) In General.--Subsection (g) of section 30C is amended by
striking ``placed in service'' and all that follows and
inserting ``placed in service after December 31, 2014.''.
(b) Effective Date.--The amendment made by this section shall
apply to property placed in service after December 31, 2013.
Page 115, strike line 23 and all that follows though page
116, line 2 (and redesignate the succeeding paragraphs
accordingly).
PART B--TEXT OF AMENDMENT TO H.R. 647 CONSIDERED AS ADOPTED
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; ETC.
(a) Short Title.--This Act may be cited as the ``Achieving a
Better Life Experience Act of 2014'' or the ``ABLE Act of
2014''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this Act an amendment or repeal is
expressed in terms of an amendment to, or repeal of, a section
or other provision, the reference shall be considered to be
made to a section or other provision of the Internal Revenue
Code of 1986.
(c) Table of Contents.--The table of contents of this Act is
as follows:
Sec. 1. Short title; etc.
TITLE I--QUALIFIED ABLE PROGRAMS
Sec. 101. Purposes.
Sec. 102. Qualified ABLE programs.
Sec. 103. Treatment of ABLE accounts under certain Federal programs.
Sec. 104. Treatment of able accounts in bankruptcy.
Sec. 105. Investment direction rule for 529 plans.
TITLE II--OFFSETS
Sec. 201. Correction to workers compensation offset age.
Sec. 202. Accelerated application of relative value targets for
misvalued services in the Medicare physician fee schedule.
Sec. 203. Consistent treatment of vacuum erection systems in Medicare
Parts B and D.
Sec. 204. One-year delay of implementation of oral-only policy under
Medicare ESRD prospective payment system.
Sec. 205. Modification relating to Inland Waterways Trust Fund financing
rate.
Sec. 206. Certified professional employer organizations.
Sec. 207. Exclusion of dividends from controlled foreign corporations
from the definition of personal holding company income for
purposes of the personal holding company rules.
Sec. 208. Inflation adjustment for certain civil penalties under the
Internal Revenue Code of 1986.
Sec. 209. Increase in continuous levy.
TITLE I--QUALIFIED ABLE PROGRAMS
SEC. 101. PURPOSES.
The purposes of this title are as follows:
(1) To encourage and assist individuals and families
in saving private funds for the purpose of supporting
individuals with disabilities to maintain health,
independence, and quality of life.
(2) To provide secure funding for disability-related
expenses on behalf of designated beneficiaries with
disabilities that will supplement, but not supplant,
benefits provided through private insurance, the
Medicaid program under title XIX of the Social Security
Act, the supplemental security income program under
title XVI of such Act, the beneficiary's employment,
and other sources.
SEC. 102. QUALIFIED ABLE PROGRAMS.
(a) In General.--Subchapter F of chapter 1 is amended by
inserting after section 529 the following new section:
``SEC. 529A. QUALIFIED ABLE PROGRAMS.
``(a) General Rule.--A qualified ABLE program shall be exempt
from taxation under this subtitle. Notwithstanding the
preceding sentence, such program shall be subject to the taxes
imposed by section 511 (relating to imposition of tax on
unrelated business income of charitable organizations).
``(b) Qualified ABLE Program.--For purposes of this section--
``(1) In general.--The term `qualified ABLE program'
means a program established and maintained by a State,
or agency or instrumentality thereof--
``(A) under which a person may make
contributions for a taxable year, for the
benefit of an individual who is an eligible
individual for such taxable year, to an ABLE
account which is established for the purpose of
meeting the qualified disability expenses of
the designated beneficiary of the account,
``(B) which limits a designated beneficiary
to 1 ABLE account for purposes of this section,
``(C) which allows for the establishment of
an ABLE account only for a designated
beneficiary who is a resident of such State or
a resident of a contracting State, and
``(D) which meets the other requirements of
this section.
``(2) Cash contributions.--A program shall not be
treated as a qualified ABLE program unless it provides
that no contribution will be accepted--
``(A) unless it is in cash, or
``(B) except in the case of contributions
under subsection (c)(1)(C), if such
contribution to an ABLE account would result in
aggregate contributions from all contributors
to the ABLE account for the taxable year
exceeding the amount in effect under section
2503(b) for the calendar year in which the
taxable year begins.
For purposes of this paragraph, rules similar to the
rules of section 408(d)(4) (determined without regard
to subparagraph (B) thereof) shall apply.
``(3) Separate accounting.--A program shall not be
treated as a qualified ABLE program unless it provides
separate accounting for each designated beneficiary.
``(4) Limited investment direction.--A program shall
not be treated as a qualified ABLE program unless it
provides that any designated beneficiary under such
program may, directly or indirectly, direct the
investment of any contributions to the program (or any
earnings thereon) no more than 2 times in any calendar
year.
``(5) No pledging of interest as security.--A program
shall not be treated as a qualified ABLE program if it
allows any interest in the program or any portion
thereof to be used as security for a loan.
``(6) Prohibition on excess contributions.--A program
shall not be treated as a qualified ABLE program unless
it provides adequate safeguards to prevent aggregate
contributions on behalf of a designated beneficiary in
excess of the limit established by the State under
section 529(b)(6). For purposes of the preceding
sentence, aggregate contributions include contributions
under any prior qualified ABLE program of any State or
agency or instrumentality thereof.
``(c) Tax Treatment.--
``(1) Distributions.--
``(A) In general.--Any distribution under a
qualified ABLE program shall be includible in
the gross income of the distributee in the
manner as provided under section 72 to the
extent not excluded from gross income under any
other provision of this chapter.
``(B) Distributions for qualified disability
expenses.--For purposes of this paragraph, if
distributions from a qualified ABLE program--
``(i) do not exceed the qualified
disability expenses of the designated
beneficiary, no amount shall be
includible in gross income, and
``(ii) in any other case, the amount
otherwise includible in gross income
shall be reduced by an amount which
bears the same ratio to such amount as
such expenses bear to such
distributions.
``(C) Change in designated beneficiaries or
programs.--
``(i) Rollovers from able accounts.--
Subparagraph (A) shall not apply to any
amount paid or distributed from an ABLE
account to the extent that the amount
received is paid, not later than the
60th day after the date of such payment
or distribution, into another ABLE
account for the benefit of the same
designated beneficiary or an eligible
individual who is a family member of
the designated beneficiary.
``(ii) Change in designated
beneficiaries.--Any change in the
designated beneficiary of an interest
in a qualified ABLE program during a
taxable year shall not be treated as a
distribution for purposes of
subparagraph (A) if the new beneficiary
is an eligible individual for such
taxable year and a member of the family
of the former beneficiary.
``(iii) Limitation on certain
rollovers.--Clause (i) shall not apply
to any transfer if such transfer occurs
within 12 months from the date of a
previous transfer to any qualified ABLE
program for the benefit of the
designated beneficiary.
``(D) Operating rules.--For purposes of
applying section 72--
``(i) except to the extent provided
by the Secretary, all distributions
during a taxable year shall be treated
as one distribution, and
``(ii) except to the extent provided
by the Secretary, the value of the
contract, income on the contract, and
investment in the contract shall be
computed as of the close of the
calendar year in which the taxable year
begins.
``(2) Gift tax rules.--For purposes of chapters 12
and 13--
``(A) Contributions.--Any contribution to a
qualified ABLE program on behalf of any
designated beneficiary--
``(i) shall be treated as a completed
gift to such designated beneficiary
which is not a future interest in
property, and
``(ii) shall not be treated as a
qualified transfer under section
2503(e).
``(B) Treatment of distributions.--In no
event shall a distribution from an ABLE account
to such account's designated beneficiary be
treated as a taxable gift.
``(C) Treatment of transfer to new designated
beneficiary.--The taxes imposed by chapters 12
and 13 shall not apply to a transfer by reason
of a change in the designated beneficiary under
subsection (c)(1)(C).
``(3) Additional tax for distributions not used for
disability expenses.--
``(A) In general.--The tax imposed by this
chapter for any taxable year on any taxpayer
who receives a distribution from a qualified
ABLE program which is includible in gross
income shall be increased by 10 percent of the
amount which is so includible.
``(B) Exception.--Subparagraph (A) shall not
apply if the payment or distribution is made to
a beneficiary (or to the estate of the
designated beneficiary) on or after the death
of the designated beneficiary.
``(C) Contributions returned before certain
date.--Subparagraph (A) shall not apply to the
distribution of any contribution made during a
taxable year on behalf of the designated
beneficiary if--
``(i) such distribution is received
on or before the day prescribed by law
(including extensions of time) for
filing such designated beneficiary's
return for such taxable year, and
``(ii) such distribution is
accompanied by the amount of net income
attributable to such excess
contribution.
Any net income described in clause (ii) shall
be included in gross income for the taxable
year in which such excess contribution was
made.
``(4) Loss of able account treatment.--If an ABLE
account is established for a designated beneficiary, no
account subsequently established for such beneficiary
shall be treated as an ABLE account. The preceding
sentence shall not apply in the case of an account
established for purposes of a rollover described in
paragraph (1)(C)(i) of this section if the transferor
account is closed as of the end of the 60th day
referred to in paragraph (1)(C)(i).
``(d) Reports.--
``(1) In general.--Each officer or employee having
control of the qualified ABLE program or their designee
shall make such reports regarding such program to the
Secretary and to designated beneficiaries with respect
to contributions, distributions, the return of excess
contributions, and such other matters as the Secretary
may require.
``(2) Certain aggregated information.--For research
purposes, the Secretary shall make available to the
public reports containing aggregate information, by
diagnosis and other relevant characteristics, on
contributions and distributions from the qualified ABLE
program. In carrying out the preceding sentence an item
may not be made available to the public if such item
can be associated with, or otherwise identify, directly
or indirectly, a particular individual.
``(3) Notice of establishment of able account.--A
qualified ABLE program shall submit a notice to the
Secretary upon the establishment of an ABLE account.
Such notice shall contain the name and State of
residence of the designated beneficiary and such other
information as the Secretary may require.
``(4) Electronic distribution statements.--For
purposes of section 4 of the Achieving a Better Life
Experience Act of 2014, States shall submit
electronically on a monthly basis to the Commissioner
of Social Security, in the manner specified by the
Commissioner, statements on relevant distributions and
account balances from all ABLE accounts.
``(5) Requirements.--The reports and notices required
by paragraphs (1), (2), and (3) shall be filed at such
time and in such manner and furnished to such
individuals at such time and in such manner as may be
required by the Secretary.
``(e) Other Definitions and Special Rules.--For purposes of
this section--
``(1) Eligible individual.--An individual is an
eligible individual for a taxable year if during such
taxable year--
``(A) the individual is entitled to benefits
based on blindness or disability under title II
or XVI of the Social Security Act, and such
blindness or disability occurred before the
date on which the individual attained age 26,
or
``(B) a disability certification with respect
to such individual is filed with the Secretary
for such taxable year.
``(2) Disability certification.--
``(A) In general.--The term `disability
certification' means, with respect to an
individual, a certification to the satisfaction
of the Secretary by the individual or the
parent or guardian of the individual that--
``(i) certifies that--
``(I) the individual has a
medically determinable physical
or mental impairment, which
results in marked and severe
functional limitations, and
which can be expected to result
in death or which has lasted or
can be expected to last for a
continuous period of not less
than 12 months, or is blind
(within the meaning of section
1614(a)(2) of the Social
Security Act), and
``(II) such blindness or
disability occurred before the
date on which the individual
attained age 26, and
``(ii) includes a copy of the
individual's diagnosis relating to the
individual's relevant impairment or
impairments, signed by a physician
meeting the criteria of section
1861(r)(1) of the Social Security Act.
``(B) Restriction on use of certification.--
No inference may be drawn from a disability
certification for purposes of establishing
eligibility for benefits under title II, XVI,
or XIX of the Social Security Act.
``(3) Designated beneficiary.--The term `designated
beneficiary' in connection with an ABLE account
established under a qualified ABLE program means the
eligible individual who established an ABLE account and
is the owner of such account.
``(4) Member of family.--The term `member of the
family' means, with respect to any designated
beneficiary, an individual who bears a relationship to
such beneficiary which is described in subparagraph
section 152(d)(2)(B). For purposes of the preceding
sentence, a rule similar to the rule of section
152(f)(1)(B) shall apply.
``(5) Qualified disability expenses.--The term
`qualified disability expenses' means any expenses
related to the eligible individual's blindness or
disability which are made for the benefit of an
eligible individual who is the designated beneficiary,
including the following expenses: education, housing,
transportation, employment training and support,
assistive technology and personal support services,
health, prevention and wellness, financial management
and administrative services, legal fees, expenses for
oversight and monitoring, funeral and burial expenses,
and other expenses, which are approved by the Secretary
under regulations and consistent with the purposes of
this section.
``(6) ABLE account.--The term `ABLE account' means an
account established by an eligible individual, owned by
such eligible individual, and maintained under a
qualified ABLE program.
``(7) Contracting state.--The term `contracting
State' means a State without a qualified ABLE program
which has entered into a contract with a State with a
qualified ABLE program to provide residents of the
contracting State access to a qualified ABLE program.
``(f) Transfer to State.--Subject to any outstanding payments
due for qualified disability expenses, upon the death of the
designated beneficiary, all amounts remaining in the qualified
ABLE account not in excess of the amount equal to the total
medical assistance paid for the designated beneficiary after
the establishment of the account, net of any premiums paid from
the account or paid by or on behalf of the beneficiary to a
Medicaid Buy-In program under any State Medicaid plan
established under title XIX of the Social Security Act, shall
be distributed to such State upon filing of a claim for payment
by such State. For purposes of this paragraph, the State shall
be a creditor of an ABLE account and not a beneficiary.
Subsection (c)(3) shall not apply to a distribution under the
preceding sentence.
``(g) Regulations.--The Secretary shall prescribe such
regulations or other guidance as the Secretary determines
necessary or appropriate to carry out the purposes of this
section, including regulations--
``(1) to enforce the 1 ABLE account per eligible
individual limit,
``(2) providing for the information required to be
presented to open an ABLE account,
``(3) to generally define qualified disability
expenses,
``(4) developed in consultation with the Commissioner
of Social Security, relating to disability
certifications and determinations of disability,
including those conditions deemed to meet the
requirements of subsection (e)(1)(B),
``(5) to prevent fraud and abuse with respect to
amounts claimed as qualified disability expenses,
``(6) under chapters 11, 12, and 13 of this title,
and
``(7) to allow for transfers from one ABLE account to
another ABLE account.''.
(b) Tax on Excess Contributions.--
(1) In general.--Subsection (a) of section 4973
(relating to tax on excess contributions to certain
tax-favored accounts and annuities) is amended by
striking ``or'' at the end of paragraph (4), by
inserting ``or'' at the end of paragraph (5), and by
inserting after paragraph (5) the following new
paragraph:
``(6) an ABLE account (within the meaning of section
529A),''.
(2) Excess contribution.--Section 4973 is amended by
adding at the end the following new subsection:
``(h) Excess Contributions to ABLE Account.--For purposes of
this section--
``(1) In general.--In the case of an ABLE account
(within the meaning of section 529A), the term `excess
contributions' means the amount by which the amount
contributed for the taxable year to such account (other
than contributions under section 529A(c)(1)(C)) exceeds
the contribution limit under section 529A(b)(2)(B).
``(2) Special rule.--For purposes of this subsection,
any contribution which is distributed out of the ABLE
account in a distribution to which the last sentence of
section 529A(b)(2) applies shall be treated as an
amount not contributed.''.
(c) Penalty for Failure to File Reports.--Section 6693(a)(2)
is amended by striking ``and'' at the end of subparagraph (D),
by redesignating subparagraph (E) as subparagraph (F), and by
inserting after subparagraph (D) the following:
``(E) section 529A(d) (relating to qualified
ABLE programs), and''.
(d) Records.--Section 552a(a)(8)(B) of title 5, United States
Code, is amended--
(1) in clause (viii), by striking ``or'' at the end;
(2) in clause (ix), by adding ``or'' at the end; and
(3) by adding at the end the following new clause:
``(x) matches performed pursuant to
section 3(d)(4) of the Achieving a
Better Life Experience Act of 2014;''.
(e) Other Conforming Amendments.--
(1) Section 26(b)(2) is amended by striking ``and''
at the end of subparagraph (W), by striking the period
at the end of subparagraph (X) and inserting ``, and'',
and by inserting after subparagraph (X) the following:
``(Y) section 529A(c)(3)(A) (relating to
additional tax on ABLE account distributions
not used for qualified disability expenses).''.
(2) Section 877A is amended--
(A) in subsection (e)(2) by inserting ``a
qualified ABLE program (as defined in section
529A),'' after ``529),'', and
(B) in subsection (g)(6) by inserting
``529A(c)(3),'' after ``529(c)(6),''.
(3) Section 4965(c) is amended by striking ``or'' at
the end of paragraph (6), by striking the period at the
end of paragraph (7) and inserting ``, or'', and by
inserting after paragraph (7) the following new
paragraph:
``(8) a program described in section 529A.''.
(4) The heading for part VIII of subchapter F of
chapter 1 is amended by striking ``HIGHER EDUCATION''
and inserting ``CERTAIN''.
(5) The item in the table of parts for subchapter F
of chapter 1 relating to part VIII is amended to read
as follows:
``Part VIII. Certain Savings Entities.''.
(6) The table of sections for part VIII of subchapter
F of chapter 1 is amended by inserting after the item
relating to section 529 the following new item:
``Sec. 529A. Qualified ABLE programs.''.
(7) Paragraph (4) of section 1027(g) of the Consumer
Financial Protection Act of 2010 (12 U.S.C. 5517(g)(4))
is amended by inserting ``, 529A'' after ``529''.
(f) Effective Date.--
(1) In general.--The amendments made by this section
shall apply to taxable years beginning after December
31, 2014.
(2) Regulations.--The Secretary of the Treasury (or
the Secretary's designee) shall promulgate the
regulations or other guidance required under section
529A(g) of the Internal Revenue Code of 1986, as added
by subsection (a), not later than 6 months after the
date of the enactment of this Act.
SEC. 103. TREATMENT OF ABLE ACCOUNTS UNDER CERTAIN FEDERAL PROGRAMS.
(a) Account Funds Disregarded for Purposes of Certain Other
Means-Tested Federal Programs.--Notwithstanding any other
provision of Federal law that requires consideration of 1 or
more financial circumstances of an individual, for the purpose
of determining eligibility to receive, or the amount of, any
assistance or benefit authorized by such provision to be
provided to or for the benefit of such individual, any amount
(including earnings thereon) in the ABLE account (within the
meaning of section 529A of the Internal Revenue Code of 1986)
of such individual, any contributions to the ABLE account of
the individual, and any distribution for qualified disability
expenses (as defined in subsection (e)(5) of such section)
shall be disregarded for such purpose with respect to any
period during which such individual maintains, makes
contributions to, or receives distributions from such ABLE
account, except that, in the case of the supplemental security
income program under title XVI of the Social Security Act--
(1) a distribution for housing expenses (within the
meaning of such subsection) shall not be so
disregarded, and
(2) in the case of such program, any amount
(including such earnings) in such ABLE account shall be
considered a resource of the designated beneficiary to
the extent that such amount exceeds $100,000.
(b) Suspension of SSI Benefits During Periods of Excessive
Account Funds.--
(1) In general.--The benefits of an individual under
the supplemental security income program under title
XVI of the Social Security Act shall not be terminated,
but shall be suspended, by reason of excess resources
of the individual attributable to an amount in the ABLE
account (within the meaning of section 529A of the
Internal Revenue Code of 1986) of the individual not
disregarded under subsection (a) of this section.
(2) No impact on medicaid eligibility.--An individual
who would be receiving payment of such supplemental
security income benefits but for the application of
paragraph (1) shall be treated for purposes of title
XIX of the Social Security Act as if the individual
continued to be receiving payment of such benefits.
(c) Effective Date.--This section shall take effect on the
date of the enactment of this Act.
SEC. 104. TREATMENT OF ABLE ACCOUNTS IN BANKRUPTCY.
(a) Exclusion From Property of the Estate.--Section 541(b) of
the title 11, United States Code, is amended--
(1) in paragraph (8), by striking ``or'' at the end;
(2) in paragraph (9), by striking the period at the
end and inserting a semicolon and ``or''; and
(3) by inserting after paragraph (9) the following:
``(10) funds placed in an account of a qualified ABLE
program (as defined in section 529A(b) of the Internal
Revenue Code of 1986) not later than 365 days before
the date of the filing of the petition in a case under
this title, but--
``(A) only if the designated beneficiary of
such account was a child, stepchild,
grandchild, or stepgrandchild of the debtor for
the taxable year for which funds were placed in
such account;
``(B) only to the extent that such funds--
``(i) are not pledged or promised to
any entity in connection with any
extension of credit; and
``(ii) are not excess contributions
(as described in section 4973(h) of the
Internal Revenue Code of 1986); and
``(C) in the case of funds placed in all such
accounts having the same designated beneficiary
not earlier than 720 days nor later than 365
days before such date, only so much of such
funds as does not exceed $6,225.''.
(b) Debtor's Monthly Expenses.--Section 707(b)(2)(A)(ii)(II)
of title 11, United States Code, is amended by adding at the
end ``Such monthly expenses may include, if applicable,
contributions to an account of a qualified ABLE program to the
extent such contributions are not excess contributions (as
described in section 4973(h) of the Internal Revenue Code of
1986) and if the designated beneficiary of such account is a
child, stepchild, grandchild, or stepgrandchild of the
debtor.''.
(c) Record of Debtor's Interest.--Section 521(c) of title 11,
United States Code, is amended by inserting ``, an interest in
an account in a qualified ABLE program (as defined in section
529A(b) of such Code,'' after ``Internal Revenue Code of
1986)''.
(d) Effective Date.--The amendments made by this section
shall apply with respect to cases commenced under title 11,
United States Code, on or after the date of the enactment of
this Act.
SEC. 105. INVESTMENT DIRECTION RULE FOR 529 PLANS.
(a) Amendments Relating to Investment Direction Rule for 529
Plans.--
(1) Paragraph (4) of section 529(b) is amended by
striking ``may not directly or indirectly'' and all
that follows and inserting ``may, directly or
indirectly, direct the investment of any contributions
to the program (or any earnings thereon) no more than 2
times in any calendar year.''.
(2) The heading of paragraph (4) of section 529(b)is
amended by striking ``No'' and inserting ``Limited''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31, 2014.
TITLE II--OFFSETS
SEC. 201. CORRECTION TO WORKERS COMPENSATION OFFSET AGE.
(a) Retirement Age.--Section 224(a) of the Social Security
Act (42 U.S.C. 424a(a)) is amended, in the matter preceding
paragraph (1), by striking ``the age of 65'' and inserting
``retirement age (as defined in section 216(l)(1))''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply with respect to any individual who attains 65 years
of age on or after the date that is 12 months after the date of
the enactment of this Act.
SEC. 202. ACCELERATED APPLICATION OF RELATIVE VALUE TARGETS FOR
MISVALUED SERVICES IN THE MEDICARE PHYSICIAN FEE
SCHEDULE.
Section 1848(c) of the Social Security Act (42 U.S.C. 1395w-
4(c)) is amended--
(1) in subclause (VIII) of paragraph (2)(B)(v), as
added by section 220(d)(2) of the Protecting Access to
Medicare Act of 2014 (Public Law 113-93)--
(A) by striking ``2017'' and inserting
``2016''; and
(B) by redesignating such subclause as
subclause (IX);
(2) in paragraph (2)(O)--
(A) in the matter preceding clause (i), by
striking ``2017 through 2020'' and inserting
``2016 through 2018'';
(B) in clause (iii), by striking ``2017'' and
inserting ``2016''; and
(C) in clause (v), by inserting ``(or, for
2016, 1.0 percent)'' after ``0.5 percent''; and
(3) in paragraph (7), by striking ``2017'' and
inserting ``2016''.
SEC. 203. CONSISTENT TREATMENT OF VACUUM ERECTION SYSTEMS IN MEDICARE
PARTS B AND D.
Section 1834(a)(1) of the Social Security Act (42 U.S.C.
1395m(a)(1)) is amended by adding at the end the following new
subparagraph:
``(I) Treatment of vacuum erection systems.--
Effective for items and services furnished on
and after July 1, 2015, vacuum erection systems
described as prosthetic devices described in
section 1861(s)(8) shall be treated in the same
manner as erectile dysfunction drugs are
treated for purposes of section 1860D-
2(e)(2)(A).''.
SEC. 204. ONE-YEAR DELAY OF IMPLEMENTATION OF ORAL-ONLY POLICY UNDER
MEDICARE ESRD PROSPECTIVE PAYMENT SYSTEM.
Section 632(b)(1) of the American Taxpayer Relief Act of 2012
(42 U.S.C. 1395rr note), as amended by section 217(a)(1) of the
Protecting Access to Medicare Act of 2014 (Public Law 113-93),
is amended by striking ``2024'' and inserting ``2025''.
SEC. 205. MODIFICATION RELATING TO INLAND WATERWAYS TRUST FUND
FINANCING RATE.
(a) In General.--Section 4042(b)(2)(A) is amended to read as
follows:
``(A) The Inland Waterways Trust Fund
financing rate is 29 cents per gallon.''.
(b) Effective Date.--The amendment made by this section shall
apply to fuel used after March 31, 2015.
SEC. 206. CERTIFIED PROFESSIONAL EMPLOYER ORGANIZATIONS.
(a) Employment Taxes.--Chapter 25 is amended by adding at the
end the following new section:
``SEC. 3511. CERTIFIED PROFESSIONAL EMPLOYER ORGANIZATIONS.
``(a) General Rules.--For purposes of the taxes, and other
obligations, imposed by this subtitle--
``(1) a certified professional employer organization
shall be treated as the employer (and no other person
shall be treated as the employer) of any work site
employee performing services for any customer of such
organization, but only with respect to remuneration
remitted by such organization to such work site
employee, and
``(2) the exemptions, exclusions, definitions, and
other rules which are based on type of employer and
which would (but for paragraph (1)) apply shall apply
with respect to such taxes imposed on such
remuneration.
``(b) Successor Employer Status.--For purposes of sections
3121(a)(1), 3231(e)(2)(C), and 3306(b)(1)--
``(1) a certified professional employer organization
entering into a service contract with a customer with
respect to a work site employee shall be treated as a
successor employer and the customer shall be treated as
a predecessor employer during the term of such service
contract, and
``(2) a customer whose service contract with a
certified professional employer organization is
terminated with respect to a work site employee shall
be treated as a successor employer and the certified
professional employer organization shall be treated as
a predecessor employer.
``(c) Liability of Certified Professional Employer
Organization.--Solely for purposes of its liability for the
taxes and other obligations imposed by this subtitle--
``(1) a certified professional employer organization
shall be treated as the employer of any individual
(other than a work site employee or a person described
in subsection (f)) who is performing services covered
by a contract meeting the requirements of section
7705(e)(2), but only with respect to remuneration
remitted by such organization to such individual, and
``(2) the exemptions, exclusions, definitions, and
other rules which are based on type of employer and
which would (but for paragraph (1)) apply shall apply
with respect to such taxes imposed on such
remuneration.
``(d) Treatment of Credits.--
``(1) In general.--For purposes of any credit
specified in paragraph (2)--
``(A) such credit with respect to a work site
employee performing services for the customer
applies to the customer, not the certified
professional employer organization,
``(B) the customer, and not the certified
professional employer organization, shall take
into account wages and employment taxes--
``(i) paid by the certified
professional employer organization with
respect to the work site employee, and
``(ii) for which the certified
professional employer organization
receives payment from the customer, and
``(C) the certified professional employer
organization shall furnish the customer and the
Secretary with any information necessary for
the customer to claim such credit.
``(2) Credits specified.--A credit is specified in
this paragraph if such credit is allowed under--
``(A) section 41 (credit for increasing
research activity),
``(B) section 45A (Indian employment credit),
``(C) section 45B (credit for portion of
employer social security taxes paid with
respect to employee cash tips),
``(D) section 45C (clinical testing expenses
for certain drugs for rare diseases or
conditions),
``(E) section 45R (employee health insurance
expenses of small employers),
``(F) section 51 (work opportunity credit),
``(G) section 1396 (empowerment zone
employment credit), and
``(H) any other section as provided by the
Secretary.
``(e) Special Rule for Related Party.--This section shall not
apply in the case of a customer which bears a relationship to a
certified professional employer organization described in
section 267(b) or 707(b). For purposes of the preceding
sentence, such sections shall be applied by substituting `10
percent' for `50 percent'.
``(f) Special Rule for Certain Individuals.--For purposes of
the taxes imposed under this subtitle, an individual with net
earnings from self-employment derived from the customer's trade
or business (including a partner in a partnership that is a
customer) is not a work site employee with respect to
remuneration paid by a certified professional employer
organization.
``(g) Reporting Requirements and Obligations.--The Secretary
shall develop such reporting and recordkeeping rules,
regulations, and procedures as the Secretary determines
necessary or appropriate to ensure compliance with this title
by certified professional employer organizations or persons
that have been so certified. Such rules shall include--
``(1) notification of the Secretary in such manner as
the Secretary shall prescribe in the case of the
commencement or termination of a service contract
described in section 7705(e)(2) between such a person
and a customer, and the employer identification number
of such customer,
``(2) such information as the Secretary determines
necessary for the customer to claim the credits
identified in subsection (d) and the manner in which
such information is to be provided, as prescribed by
the Secretary, and
``(3) such other information as the Secretary
determines is essential to promote compliance with
respect to the credits identified in subsection (d) and
section 3302, and
shall be designed in a manner which streamlines, to the extent
possible, the application of requirements of this section and
section 7705, the exchange of information between a certified
professional employer organization and its customers, and the
reporting and recordkeeping obligations of the certified
professional employer organization.
``(h) Regulations.--The Secretary shall prescribe such
regulations as may be necessary or appropriate to carry out the
purposes of this section.''.
(b) Certified Professional Employer Organization Defined.--
Chapter 79 is amended by adding at the end the following new
section:
``SEC. 7705. CERTIFIED PROFESSIONAL EMPLOYER ORGANIZATIONS.
``(a) In General.--For purposes of this title, the term
`certified professional employer organization' means a person
who applies to be treated as a certified professional employer
organization for purposes of section 3511 and has been
certified by the Secretary as meeting the requirements of
subsection (b).
``(b) Certification Requirements.--A person meets the
requirements of this subsection if such person--
``(1) demonstrates that such person (and any owner,
officer, and other persons as may be specified in
regulations) meets such requirements as the Secretary
shall establish, including requirements with respect to
tax status, background, experience, business location,
and annual financial audits,
``(2) agrees that it will satisfy the bond and
independent financial review requirements of subsection
(c) on an ongoing basis,
``(3) agrees that it will satisfy such reporting
obligations as may be imposed by the Secretary,
``(4) computes its taxable income using an accrual
method of accounting unless the Secretary approves
another method,
``(5) agrees to verify on such periodic basis as the
Secretary may prescribe that it continues to meet the
requirements of this subsection, and
``(6) agrees to notify the Secretary in writing
within such time as the Secretary may prescribe of any
change that materially affects the continuing accuracy
of any agreement or information that was previously
made or provided under this subsection.
``(c) Bond and Independent Financial Review.--
``(1) In general.--An organization meets the
requirements of this paragraph if such organization--
``(A) meets the bond requirements of
paragraph (2), and
``(B) meets the independent financial review
requirements of paragraph (3).
``(2) Bond.--
``(A) In general.--A certified professional
employer organization meets the requirements of
this paragraph if the organization has posted a
bond for the payment of taxes under subtitle C
(in a form acceptable to the Secretary) that is
in an amount at least equal to the amount
specified in subparagraph (B).
``(B) Amount of bond.--For the period April 1
of any calendar year through March 31 of the
following calendar year, the amount of the bond
required is equal to the greater of--
``(i) 5 percent of the organization's
liability under section 3511 for taxes
imposed by subtitle C during the
preceding calendar year (but not to
exceed $1,000,000), or
``(ii) $50,000.
``(3) Independent financial review requirements.--A
certified professional employer organization meets the
requirements of this paragraph if such organization--
``(A) has, as of the most recent audit date,
caused to be prepared and provided to the
Secretary (in such manner as the Secretary may
prescribe) an opinion of an independent
certified public accountant as to whether the
certified professional employer organization's
financial statements are presented fairly in
accordance with generally accepted accounting
principles, and
``(B) provides to the Secretary an assertion
regarding Federal employment tax payments and
an examination level attestation on such
assertion from an independent certified public
accountant not later than the last day of the
second month beginning after the end of each
calendar quarter.
Such assertion shall state that the organization has
withheld and made deposits of all taxes imposed by
chapters 21, 22, and 24 in accordance with regulations
imposed by the Secretary for such calendar quarter and
such examination level attestation shall state that
such assertion is fairly stated, in all material
respects.
``(4) Controlled group rules.--For purposes of the
requirements of paragraphs (2) and (3), all certified
professional employer organizations that are members of
a controlled group within the meaning of sections
414(b) and (c) shall be treated as a single
organization.
``(5) Failure to file assertion and attestation.--If
the certified professional employer organization fails
to file the assertion and attestation required by
paragraph (3) with respect to any calendar quarter,
then the requirements of paragraph (3) with respect to
such failure shall be treated as not satisfied for the
period beginning on the due date for such attestation.
``(6) Audit date.--For purposes of paragraph (3)(A),
the audit date shall be six months after the completion
of the organization's fiscal year.
``(d) Suspension and Revocation Authority.--The Secretary may
suspend or revoke a certification of any person under
subsection (b) for purposes of section 3511 if the Secretary
determines that such person is not satisfying the agreements or
requirements of subsections (b) or (c), or fails to satisfy
applicable accounting, reporting, payment, or deposit
requirements.
``(e) Work Site Employee.--For purposes of this title--
``(1) In general.--The term `work site employee'
means, with respect to a certified professional
employer organization, an individual who--
``(A) performs services for a customer
pursuant to a contract which is between such
customer and the certified professional
employer organization and which meets the
requirements of paragraph (2), and
``(B) performs services at a work site
meeting the requirements of paragraph (3).
``(2) Service contract requirements.--A contract
meets the requirements of this paragraph with respect
to an individual performing services for a customer if
such contract is in writing and provides that the
certified professional employer organization shall--
``(A) assume responsibility for payment of
wages to such individual, without regard to the
receipt or adequacy of payment from the
customer for such services,
``(B) assume responsibility for reporting,
withholding, and paying any applicable taxes
under subtitle C, with respect to such
individual's wages, without regard to the
receipt or adequacy of payment from the
customer for such services,
``(C) assume responsibility for any employee
benefits which the service contract may require
the certified professional employer
organization to provide, without regard to the
receipt or adequacy of payment from the
customer for such benefits,
``(D) assume responsibility for recruiting,
hiring, and firing workers in addition to the
customer's responsibility for recruiting,
hiring, and firing workers,
``(E) maintain employee records relating to
such individual, and
``(F) agree to be treated as a certified
professional employer organization for purposes
of section 3511 with respect to such
individual.
``(3) Work site coverage requirement.--The
requirements of this paragraph are met with respect to
an individual if at least 85 percent of the individuals
performing services for the customer at the work site
where such individual performs services are subject to
1 or more contracts with the certified professional
employer organization which meet the requirements of
paragraph (2) (but not taking into account those
individuals who are excluded employees within the
meaning of section 414(q)(5)).
``(f) Public Disclosure.--The Secretary shall make available
to the public the name and address of--
``(1) each person certified as a professional
employer organization under subsection (a), and
``(2) each person whose certification as a
professional employer organization is suspended or
revoked under subsection (d).
``(g) Determination of Employment Status.--Except to the
extent necessary for purposes of section 3511, nothing in this
section shall be construed to affect the determination of who
is an employee or employer for purposes of this title.
``(h) Regulations.--The Secretary shall prescribe such
regulations as may be necessary or appropriate to carry out the
purposes of this section.''.
(c) Conforming Amendments.--
(1) Section 3302 is amended by adding at the end the
following new subsection:
``(h) Treatment of Certified Professional Employer
Organizations.--If a certified professional employer
organization (as defined in section 7705), or a customer of
such organization, makes a contribution to the State's
unemployment fund with respect to wages paid to a work site
employee, such certified professional employer organization
shall be eligible for the credits available under this section
with respect to such contribution.''.
(2) Section 3303(a) is amended--
(A) by striking the period at the end of
paragraph (3) and inserting ``; and'' and by
inserting after paragraph (3) the following new
paragraph:
``(4) if the taxpayer is a certified professional
employer organization (as defined in section 7705) that
is treated as the employer under section 3511, such
certified professional employer organization is
permitted to collect and remit, in accordance with
paragraphs (1), (2), and (3), contributions during the
taxable year to the State unemployment fund with
respect to a work site employee.'', and
(B) in the last sentence--
(i) by striking ``paragraphs (1),
(2), and (3)'' and inserting
``paragraphs (1), (2), (3), and (4)'',
and
(ii) by striking ``paragraph (1),
(2), or (3)'' and inserting ``paragraph
(1), (2), (3), or (4)''.
(3) Section 6053(c) is amended by adding at the end
the following new paragraph:
``(8) Certified professional employer
organizations.--For purposes of any report required by
this subsection, in the case of a certified
professional employer organization that is treated
under section 3511 as the employer of a work site
employee, the customer with respect to whom a work site
employee performs services shall be the employer for
purposes of reporting under this section and the
certified professional employer organization shall
furnish to the customer and the Secretary any
information the Secretary prescribes as necessary to
complete such reporting no later than such time as the
Secretary shall prescribe.''.
(4) Section 6652 is amended by adding at the end the
following new subsection:
``(n) Failure to Make Reports Required Under Sections 3511,
6053(c)(8), and 7705.--In the case of a failure to make a
report required under section 3511, 6053(c)(8), or 7705 which
contains the information required by such section on the date
prescribed therefor (determined with regard to any extension of
time for filing), there shall be paid (on notice and demand by
the Secretary and in the same manner as tax) by the person
failing to make such report, an amount equal to $50 for each
report with respect to which there was such a failure. In the
case of any failure due to negligence or intentional disregard
the preceding sentence shall be applied by substituting `$100'
for `$50'.''.
(d) Clerical Amendments.--
(1) The table of sections for chapter 25 is amended
by adding at the end the following new item:
``Sec. 3511. Certified professional employer organizations.''.
(2) The table of sections for chapter 79 is amended
by inserting after the item relating to section 7704
the following new item:
``Sec. 7705. Certified professional employer organizations.''.
(f) User Fees.--Section 7528(b) is amended by adding at the
end the following new paragraph:
``(4) Certified professional employer
organizations.--The fee charged under the program in
connection with the certification by the Secretary of a
professional employer organization under section 7705
shall be an annual fee not to exceed $1,000 per
year.''.
(g) Effective Dates.--
(1) In general.--The amendments made by this section
shall apply with respect to wages for services
performed on or after January 1 of the first calendar
year beginning more than 12 months after the date of
the enactment of this Act.
(2) Certification program.--The Secretary of the
Treasury shall establish the certification program
described in section 7705(b) of the Internal Revenue
Code of 1986, as added by subsection (b), not later
than 6 months before the effective date determined
under paragraph (1).
(h) No Inference.--Nothing contained in this section or the
amendments made by this section shall be construed to create
any inference with respect to the determination of who is an
employee or employer--
(1) for Federal tax purposes (other than the purposes
set forth in the amendments made by this section), or
(2) for purposes of any other provision of law.
SEC. 207. EXCLUSION OF DIVIDENDS FROM CONTROLLED FOREIGN CORPORATIONS
FROM THE DEFINITION OF PERSONAL HOLDING COMPANY
INCOME FOR PURPOSES OF THE PERSONAL HOLDING COMPANY
RULES.
(a) In General.--Section 543(a)(1) is amended--
(1) by redesignating subparagraphs (C) and (D) as
subparagraphs (D) and (E), respectively, and
(2) by inserting after subparagraph (B) the
following:
``(C) dividends received by a United States
shareholder (as defined in section 951(b)) from
a controlled foreign corporation (as defined in
section 957(a)),''.
(b) Effective Date.--The amendments made by this Act shall
apply to taxable years ending on or after the date of the
enactment of this Act.
SEC. 208. INFLATION ADJUSTMENT FOR CERTAIN CIVIL PENALTIES UNDER THE
INTERNAL REVENUE CODE OF 1986.
(a) Failure to File Tax Return or Pay Tax.--Section 6651 is
amended by adding at the end the following new subsection:
``(i) Adjustment for Inflation.--
``(1) In general.--In the case of any return required
to be filed in a calendar year beginning after 2014,
the $135 dollar amount under subsection (a) shall be
increased by such dollar amount multiplied by the cost-
of-living adjustment determined under section 1(f)(3)
determined by substituting `calendar year 2013' for
`calendar year 1992' in subparagraph (B) thereof.
``(2) Rounding.--If any amount adjusted under
paragraph (1) is not a multiple of $5, such amount
shall be rounded to the next lowest multiple of $5.''.
(b) Failure to File Certain Information Returns, Registration
Statements, etc.--
(1) In general.--Section 6652(c) is amended by adding
at the end the following new paragraph:
``(6) Adjustment for inflation.--
``(A) In general.--In the case of any failure
relating to a return required to be filed in a
calendar year beginning after 2014, each of the
dollar amounts under paragraphs (1), (2), and
(3) shall be increased by such dollar amount
multiplied by the cost-of-living adjustment
determined under section 1(f)(3) determined by
substituting `calendar year 2013' for `calendar
year 1992' in subparagraph (B) thereof.
``(B) Rounding.--If any amount adjusted under
subparagraph (A)--
``(i) is not less than $5,000 and is
not a multiple of $500, such amount
shall be rounded to the next lowest
multiple of $500, and
``(ii) is not described in clause (i)
and is not a multiple of $5, such
amount shall be rounded to the next
lowest multiple of $5.''.
(2) Conforming amendments.--
(A) The last sentence of section
6652(c)(1)(A) is amended by striking ``the
first sentence of this subparagraph shall be
applied by substituting `$100' for `$20' and''
and inserting ``in applying the first sentence
of this subparagraph, the amount of the penalty
for each day during which a failure continues
shall be $100 in lieu of the amount otherwise
specified, and''.
(B) Section 6652(c)(2)(C)(ii) is amended by
striking ``the first sentence of paragraph
(1)(A)'' and all that follows and inserting
``in applying the first sentence of paragraph
(1)(A), the amount of the penalty for each day
during which a failure continues shall be $100
in lieu of the amount otherwise specified, and
in lieu of applying the second sentence of
paragraph (1)(A), the maximum penalty under
paragraph (1)(A) shall not exceed $50,000,
and''.
(c) Other Assessable Penalties With Respect to the
Preparation of Tax Returns for Other Persons.--Section 6695 is
amended by adding at the end the following new subsection:
``(h) Adjustment for Inflation.--
``(1) In general.--In the case of any failure
relating to a return or claim for refund filed in a
calendar year beginning after 2014, each of the dollar
amounts under subsections (a), (b), (c), (d), (e), (f),
and (g) shall be increased by such dollar amount
multiplied by the cost-of-living adjustment determined
under section 1(f)(3) determined by substituting
`calendar year 2013' for `calendar year 1992' in
subparagraph (B) thereof.
``(2) Rounding.--If any amount adjusted under
subparagraph (A)--
``(A) is not less than $5,000 and is not a
multiple of $500, such amount shall be rounded
to the next lowest multiple of $500, and
``(B) is not described in clause (i) and is
not a multiple of $5, such amount shall be
rounded to the next lowest multiple of $5.''.
(d) Failure to File Partnership Return.--Section 6698 is
amended by adding at the end the following new subsection:
``(e) Adjustment for Inflation.--
``(1) In general.--In the case of any return required
to be filed in a calendar year beginning after 2014,
the $195 dollar amount under subsection (b)(1) shall be
increased by such dollar amount multiplied by the cost-
of-living adjustment determined under section 1(f)(3)
determined by substituting `calendar year 2013' for
`calendar year 1992' in subparagraph (B) thereof.
``(2) Rounding.--If any amount adjusted under
paragraph (1) is not a multiple of $5, such amount
shall be rounded to the next lowest multiple of $5.''.
(e) Failure to File S Corporation Return.--Section 6699 is
amended by adding at the end the following new subsection:
``(e) Adjustment for Inflation.--
``(1) In general.--In the case of any return required
to be filed in a calendar year beginning after 2014,
the $195 dollar amount under subsection (b)(1) shall be
increased by such dollar amount multiplied by the cost-
of-living adjustment determined under section 1(f)(3)
determined by substituting `calendar year 2013' for
`calendar year 1992' in subparagraph (B) thereof.
``(2) Rounding.--If any amount adjusted under
paragraph (1) is not a multiple of $5, such amount
shall be rounded to the next lowest multiple of $5.''.
(f) Failure to File Correct Information Returns.--Section
6721(f)(1) is amended by striking ``For each fifth calendar
year beginning after 2012'' and inserting ``In the case of any
failure relating to a return required to be filed in a calendar
year beginning after 2014''.
(g) Failure to Furnish Correct Payee Statements.--Section
6722(f)(1) is amended by striking ``For each fifth calendar
year beginning after 2012'' and inserting ``In the case of any
failure relating to a statement required to be furnished in a
calendar year beginning after 2014''.
(h) Effective Date.--The amendments made by this section
shall apply to returns required to be filed after December 31,
2014.
SEC. 209. INCREASE IN CONTINUOUS LEVY.
(a) In General.--Paragraph (3) of section 6331(h) is amended
by striking the period at the end and inserting ``and by
substituting `30 percent' for `15 percent' in the case of any
specified payment due to a Medicare provider or supplier under
title XVIII of the Social Security Act.''.
(b) Effective Date.--The amendment made by this section shall
apply to payments made after 180 days after the date of the
enactment of this Act.