AMENDMENTS RELATED TO HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY ACT OF 1996.

SEC. 1602. AMENDMENTS RELATED TO HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY ACT OF 1996. (a) Amendments P elated to Section 301.— (1) Paragraph (2) of section 26(b) is amended by striking “and” at the end of subparagraph (N), by striking the period at the end of subparagraph (O) and inserting and”, and by adding at the end the following new subparagraph: “(P) section 220(f)(4) (relating to additional tax on medical savings account distributions not used for qualified medical expenses).”. (2) Paragraph (3) of section 220(c) is amended by striking subparagraph (A) and redesignating subparagraphs (B) through (D) as subparagraphs (A) through (C), respectively.111 STAT. 1094 (3) Subparagraph (C) of section 220(d)(2) is amended by striking “an eligible individual” and inserting “described in clauses (i) and (ii) of subsection (c)(1)(A)”. (4) Subsection (a) of section 6693 is amended by adding at the end the following new sentence: “This subsection shall not apply to any report which is an information return described in section 6724(d)(1)(C)(i) or a payee statement described in section 6724(d)(2)(X).”. (5) Paragraph (4) of section 4975(c) is amended by striking “if, with respect to such transaction” and all that follows and inserting the following: “if section 220(e)(2) applies to such transaction.”. (b) Amendment Related to Section 321.—Subparagraph (B) of section 7702B(c)(2) is amended in the last sentence by inserting “described in subparagraph (A)(i)” after “chronically ill individual”. (c) Amendments Related to Section 322.—Subparagraph (B) of section 162(1)(2) is amended by adding at the end the following new sentence: “The preceding sentence shall be applied separately with respect to— “(i) plans which include coverage for qualified longterm care services (as defined in section 7702B(c)) or are qualified long-term care insurance contracts (as defined in section 7702B(b)), and “(ii) plans which do not include such coverage and are not such contracts.”. (d) Amendments Related to Section 323.— (1) Paragraph (1) of section 6050Q(b) is amended by inserting “, address, and phone number of the information contact” after “name”. (2)(A) Paragraph (2) of section 6724(d) is amended by striking so much as follows subparagraph (Q) and precedes the last sentence, and inserting the following new subparagraphs: “(R) section 6050R(c) (relating to returns relating to certain purchases of fish), “(S) section 6051 (relating to receipts for employees), “(T) section 6052(b) (relating to returns regarding payment of wages in the form of group-term life insurance), “(U) section 6053(b) or (c) (relating to reports of tips), “(V) section 6048(b)(1)(B) (relating to foreign trust reporting requirements), “(W) section 4093(c)(4)(B) (relating to certain purchasers of diesel and aviation fuels), “(X) section 408(i) (relating to reports with respect to individual retirement plans) to any person other than the Secretary with respect to the amount of payments made to such person, or “(Y) section 6047(d) (relating to reports by plan administrators) to any person other than the Secretary with respect to the amount of payments made to such person.”. (B) Subsection (e) of section 6652 is amended in the last sentence by striking “section 6724(d)(2)(X)” and inserting “section 6724(d)(2)(Y)”. (e) Amendment Related to Section 325.—Clauses (ii) and (iii) of section 7702B(g)(4)(B) are each amended by striking “Secretary” and inserting “appropriate State regulatory agency”. (f) Amendments Related to Section 501.—111 STAT. 1095 (1) Paragraph (4) of section 264(a) is amended by striking subparagraph (A) and all that follows through “by the taxpayer.” and inserting the following: “(A) is or was an officer or employee, or “(B) is or was financially interested in, any trade or business carried on (currently or formerly) by the taxpayer.”. (2) The last 2 sentences of section 264(d)(2)(B)(ii) are amended to read as follows: “For purposes of subclause (II), the term ‘applicable period’ means the 12-month period beginning on the date the policy is issued (and each successive 12-month period thereafter) unless the taxpayer elects a number of months (not greater than 12) other than such 12-month period to be its applicable period. Such an election shall be made not later than the 90th day after the date of the enactment of this sentence and, if made, shall apply to the taxpayer’s first taxable year ending on or after October 13, 1995, and all subsequent taxable years unless revoked with the consent of the Secretary.”. (3) Subparagraph (B) of section 264(d)(4) is amended by striking “the employer” and inserting “the taxpayer”. (4) Subsection (c) of section 501 of the Health Insurance Portability and Accountability Act of 1996 is amended by striking paragraph (3). (5) Paragraph (2) of section 501(d) of such Act is amended by striking “no additional premiums” and all that follows and inserting the following: “a lapse occurring after October 13, 1995, by reason of no additional premiums being received under the contract.”. (g) Amendments Related to Section 511.— (1) Subparagraph (B) of section 877(d)(2) is amended by striking “the 10-year period described in subsection (a)” and inserting “the 10-year period beginning on the date the individual loses United States citizenship”. (2) Subparagraph (D) of section 877(d)(2) is amended by adding at the end the following new sentence: “In the case of any exchange occurring during such 5 years, any gain recognized under this subparagraph shall be recognized immediately after such loss of citizenship.”. (3) Paragraph (3) of section 877(d) is amended by inserting “and the period applicable under paragraph (2)” after “subsection (a)”. (4) Subparagraph (A) of section 877(d)(4) is amended— (A) by inserting “during the 10-year period beginning on the date the individual loses United States citizenship” after “contributes property” in clause (i), (B) by inserting “immediately before such contribution” after “from such property”, and (C) by striking “during the 10-year period referred to in subsection (a),”. (5) Subparagraph (C) of section 2501(a)(3) is amended by striking “decedent” and inserting “donor”. (6)(A) Clause (i) of section 2107(c)(2)(B) is amended by striking “such foreign country in respect of property included in the gross estate as the value of the property” and inserting 111 STAT. 1096“such foreign country as the value of the property subjected to such taxes by such foreign country and”. (B) Subparagraph (C) of section 2107(c)(2) is amended to read as follows: “(C) Proportionate share.—In the case of property which is included in the gross estate solely by reason of subsection (b), such property’s proportionate share is the percentage which the value of such property bears to the total value of all property included in the gross estate solely by reason of subsection (b).”. (h) Amendments Related to Section 512.— (1) Subpart A of part III of subchapter A of chapter 61 is amended by redesignating the section 6039F added by section 512 of the Health Insurance Portability and Accountability Act of 1996 as section 6039G and by moving such section 6039G to immediately after the section 6039F added by section 1905 of the Small Business Job Protection Act of 1996. (2) The table of sections for subpart A of part III of subchapter A of chapter 61 is amended by striking the item relating to the section 6039F related to information on individuals losing United States citizenship and inserting after the item relating to the section 6039F related to notice of large gifts received from foreign persons the following new item: “Sec. 6039G. Information on individuals losing United States citizenship.”. (3) Paragraph (1) of section 877(e) is amended by striking “6039F” and inserting “6039G”. (i) Effective Date.—The amendments made by this section shall take effect as if included in the provisions of the Health Insurance Portability and Accountability Act of 1996 to which such amendments relate.