A bill to amend the Internal Revenue Code of 1954 with respect to the tax treatment of expenses in attending foreign conventions.

(Reported to House from the Committee on Ways and Means with amendment, H. Rept. 95-1684)

Amends the Internal Revenue Code to allow a deduction for business expenses allocable to attendance at an unlimited number of foreign conventions or meetings held outside the North American area only if the taxpayer establishes that any such meeting is directly related to the active conduct of his trade or business and that it is more reasonable for such meeting to be held outside the North American area than within it. Prohibits any deduction for conventions, seminars, or meetings held on board a vessel.

Limits the deduction for food, lodging, and other subsistence expenses to no more than 125 percent of the Federal per diem allowance for the convention site.

Prohibits a deduction for advertising expenses paid in a foreign country if: (1) that foreign country denies such a deduction to its taxpayers for expenses paid to boardcasting stations in the United States; and (2) such denial affects United States commerce. Permits such a deduction if the President certifies to Congress that the foreign government recognizes that the denial of such deduction affects U.S. commerce and is willing to negotiate with the United States to mitigate the situation.