S.Amdt. 5741

This amendment, submitted by Mr. Schiff to bill S. 2, aims to create new rules for agreements made with the President.

Changes to Closing Agreements

The amendment changes Section 7121 of the Internal Revenue Code of 1986 so that certain rules do not apply to agreements with the President, related or affiliated individuals, or parties. These parties include:

• Family or others filing jointly.
• Trusts, parent, sister, or related companies, affiliates, and subsidiaries.

These rules would not apply until one year after the President's term of office ends.

Extension of Statute of Limitations

The amendment adds a new paragraph to Section 6501(c) of the Internal Revenue Code of 1986. This extends the time allowed to begin an assessment or court proceeding for tax collection for tax returns that:

• Belong to the President or a related or affiliated individual or party.
• Are subject to an agreement under section 7121 entered into while the individual was President.

The period to start these proceedings may now begin at any time before the later of three years after the President's term ends or the date otherwise provided in that section.