To amend the Internal Revenue Code of 1986 to repeal the taxation of social security and tier 1 railroad retirement benefits.

Repeals Internal Revenue Code provisions that include social security and tier I railroad retirement benefits in the gross (taxable) income of certain taxpayers.

 
HR 4964 IH
101st CONGRESS
2d Session
 H. R. 4964
To amend the Internal Revenue Code of 1986 to repeal the taxation of social
security and tier 1 railroad retirement benefits.
IN THE HOUSE OF REPRESENTATIVES
June 5, 1990
Mr. MCEWEN introduced the following bill; which was referred to the Committee
on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to repeal the taxation of social
security and tier 1 railroad retirement benefits.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
SECTION 1. REPEAL OF TAXATION OF SOCIAL SECURITY AND TIER 1 RAILROAD
RETIREMENT BENEFITS.
  (a) IN GENERAL- Section 86 of the Internal Revenue Code of 1986 (relating
  to taxation of social security and tier 1 railroad retirement benefits)
  is hereby repealed.
  (b) TECHNICAL AND CONFORMING AMENDMENTS-
  (1) Subparagraph (B) of section 22(c)(3) of such Code (relating to treatment
  of certain workmen's compensation benefits) is amended by striking `any
  amount treated as a social security benefit under section 86(d)(3)' and
  inserting the following: `if, by reason of section 224 of the Social Security
  Act (or by reason of section 3(a)(1) of the Railroad Retirement Act of 1974),
  any benefit otherwise payable under title II of the Social Security Act or
  the Railroad Retirement Act of 1974 is reduced by reason of the receipt of
  a benefit under a workmen's compensation act, the portion of such benefit
  received under the workmen's compensation act which equals such reduction'.
  (2) Paragraph (3) of section 72(r) of such Code (defining tier 1 railroad
  retirement benefit) is amended by striking `has the meaning given such term
  by section 86(d)(4)' and inserting the following: `means a monthly benefit
  under section 3(a), 3(f)(3), 4(a), or 4(f) of the Railroad Retirement Act
  of 1974'.
  (3) Paragraph (4) of section 135(c) of such Code (defining modified adjusted
  gross income) is amended by striking `86, 469,' and inserting `469'.
  (4) Subparagraph (E) of section 469(i)(3) of such Code (defining adjusted
  gross income) is amended by striking clause (i) and by redesignating clauses
  (ii), (iii), and (iv) as clauses (i), (ii), and (iii), respectively.
  (5) Paragraph (8) of section 861(a) of such Code (treating social security
  benefits as United States sourced) is hereby repealed.
  (6) Paragraph (3) of section 871(a) of such Code (relating to taxation of
  social security benefits received by nonresident aliens) is hereby repealed.
  (7) Subsection (g) of section 1441 of such Code (relating to withholding
  of tax on nonresident aliens) is hereby repealed.
  (8) Section 6050F of such Code (relating to returns relating to social
  security benefits) is hereby repealed.
  (9) Paragraph (1) of section 6050G(a) of such Code (relating to returns
  relating to certain railroad retirement benefits) is amended by striking
  `tier 1 railroad retirement benefits, as defined in section 86(d)(4)'
  and inserting `monthly benefits under section 3(a), 3(f)(3), 4(a), or 4(f)
  of such Act'.
  (10)(A) Paragraph (6) of section 6103(h) of such Code (relating to
  disclosure) is hereby repealed.
  (B) Paragraph (4) of section 6103(p) of such Code is amended by striking
  `(h)(6),'.
  (C) Subsection (k) of section 1113 of the Right to Financial Privacy Act
  of 1978 (12 U.S.C. 3413) is hereby repealed.
  (11) The table of sections for part II of subchapter B of chapter 1 of
  such Code is amended by striking the item relating to section 86.
  (12) The table of sections for subpart B of part III of subchapter A
  of chapter 61 of such Code is amended by striking the item relating to
  section 6050F.
  (c) EFFECTIVE DATE- The amendments made by this section shall apply to
  benefits received after December 31, 1987, in taxable years ending after
  such date.