Title II — Pub. L. 114-41

SEC. 2001. Extension of Highway Trust Fund Expenditure Authority.

(a)

Highway Trust Fund.— Section 9503 of the Internal Revenue Code of 1986 is amended—

(1)

by striking “ August 1, 2015” in subsections (b)(6)(B), (c)(1), and (e)(3) and inserting “ October 30, 2015”, and

(2)

by striking “ Highway and Transportation Funding Act of 2015” in subsections (c)(1) and (e)(3) and inserting “ Surface Transportation and Veterans Health Care Choice Improvement Act of 2015”.

(b)

Sport Fish Restoration and Boating Trust Fund.— Section 9504 of such Code is amended—

(1)

by striking “ Highway and Transportation Funding Act of 2015” each place it appears in subsection (b)(2) and inserting “ Surface Transportation and Veterans Health Care Choice Improvement Act of 2015”, and

(2)

by striking “ August 1, 2015” in subsection (d)(2) and inserting “ October 30, 2015”.

(c)

Leaking Underground Storage Tank Trust Fund.— Section 9508(e)(2) of such Code is amended by striking “ August 1, 2015” and inserting “ October 30, 2015”.

SEC. 2002. Funding of Highway Trust Fund.

Section 9503(f) of the Internal Revenue Code of 1986 is amended by redesignating paragraph (7) as paragraph (8) and by inserting after paragraph (6) the following new paragraph:

“(7) Additional sums.—Out of money in the Treasury not otherwise appropriated, there is hereby appropriated—

“(A) $6,068,000,000 to the Highway Account (as defined in subsection (e)(5)(B)) in the Highway Trust Fund; and

“(B) $2,000,000,000 to the Mass Transit Account in the Highway Trust Fund.”

SEC. 2003. Modification of Mortgage Reporting Requirements.

(a)

Information Return Requirements.— Section 6050H(b)(2) of the Internal Revenue Code of 1986 is amended by striking “ and” at the end of subparagraph (C), by redesignating subparagraph (D) as subparagraph (G) and by inserting after subparagraph (C) the following new subparagraphs:

“(D) the amount of outstanding principal on the mortgage as of the beginning of such calendar year,

“(E) the date of the origination of the mortgage,

“(F) the address (or other description in the case of property without an address) of the property which secures the mortgage, and”

(b)

Statements to Individuals.— Section 6050H(d)(2) of such Code is amended by striking “ subsection (b)(2)(C)” and inserting “ subparagraphs (C), (D), (E), and (F) of subsection (b)(2)”.

(c)

Effective Date.— The amendments made by this section shall apply to returns required to be made, and statements required to be furnished, after December 31, 2016.

SEC. 2004. Consistent Basis Reporting Between Estate and Person Acquiring Property from Decedent.

(a)

Property Acquired From a Decedent.— Section 1014 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:

“(f) Basis Must Be Consistent With Estate Tax Return.—For purposes of this section—

“(1) In general.—The basis of any property to which subsection (a) applies shall not exceed—

“(A) in the case of property the final value of which has been determined for purposes of the tax imposed by chapter 11 on the estate of such decedent, such value, and

“(B) in the case of property not described in subparagraph (A) and with respect to which a statement has been furnished under section 6035(a) identifying the value of such property, such value.

“(2) Exception.—Paragraph (1) shall only apply to any property whose inclusion in the decedent’s estate increased the liability for the tax imposed by chapter 11 (reduced by credits allowable against such tax) on such estate.

“(3) Determination.—For purposes of paragraph (1), the basis of property has been determined for purposes of the tax imposed by chapter 11 if—

“(A) the value of such property is shown on a return under section 6018 and such value is not contested by the Secretary before the expiration of the time for assessing a tax under chapter 11,

“(B) in a case not described in subparagraph (A), the value is specified by the Secretary and such value is not timely contested by the executor of the estate, or

“(C) the value is determined by a court or pursuant to a settlement agreement with the Secretary.

“(4) Regulations.—The Secretary may by regulations provide exceptions to the application of this subsection.”

(b)

Information Reporting.—

(1)

In general.— Subpart A of part III of subchapter A of chapter 61 of such Code is amended by inserting after section 6034A the following new section:

“SEC. 6035. BASIS INFORMATION TO PERSONS ACQUIRING PROPERTY FROM DECEDENT.

“(a) Information With Respect to Property Acquired From Decedents.—

“(1) In general.—The executor of any estate required to file a return under section 6018(a) shall furnish to the Secretary and to each person acquiring any interest in property included in the decedent’s gross estate for Federal estate tax purposes a statement identifying the value of each interest in such property as reported on such return and such other information with respect to such interest as the Secretary may prescribe.

“(2) Statements by beneficiaries.—Each person required to file a return under section 6018(b) shall furnish to the Secretary and to each other person who holds a legal or beneficial interest in the property to which such return relates a statement identifying the information described in paragraph (1).

“(3) Time for furnishing statement.—

“(A) In general.—Each statement required to be furnished under paragraph (1) or (2) shall be furnished at such time as the Secretary may prescribe, but in no case at a time later than the earlier of—

“(i) the date which is 30 days after the date on which the return under section 6018 was required to be filed (including extensions, if any), or

“(ii) the date which is 30 days after the date such return is filed.

“(B) Adjustments.—In any case in which there is an adjustment to the information required to be included on a statement filed under paragraph (1) or (2) after such statement has been filed, a supplemental statement under such paragraph shall be filed not later than the date which is 30 days after such adjustment is made.

“(b) Regulations.—The Secretary shall prescribe such regulations as necessary to carry out this section, including regulations relating to—

“(1) the application of this section to property with regard to which no estate tax return is required to be filed, and

“(2) situations in which the surviving joint tenant or other recipient may have better information than the executor regarding the basis or fair market value of the property.”

(2)

Penalty for failure to file.—

(A)

Return.— Section 6724(d)(1) of such Code is amended by striking “ and” at the end of subparagraph (B), by striking the period at the end of subparagraph (C) and inserting “ , and”, and by adding at the end the following new subparagraph:

“(D) any statement required to be filed with the Secretary under section 6035.”

(B)

Statement.— Section 6724(d)(2) of such Code is amended by striking “ or” at the end of subparagraph (GG), by striking the period at the end of subparagraph (HH) and inserting “ , or”, and by adding at the end the following new subparagraph:

“(II) section 6035 (other than a statement described in paragraph (1)(D)).”

(3)

Clerical amendment.— The table of sections for subpart A of part III of subchapter A of chapter 61 of such Code is amended by inserting after the item relating to section 6034A the following new item:

“Sec. 6035. Basis information to persons acquiring property from decedent.”.

(c)

Penalty for Inconsistent Reporting.—

(1)

In general.— Section 6662(b) of such Code is amended by inserting after paragraph (7) the following new paragraph:

“(8) Any inconsistent estate basis.”

(2)

Inconsistent basis reporting.— Section 6662 of such Code is amended by adding at the end the following new subsection:

“(k) Inconsistent Estate Basis Reporting.—For purposes of this section, there is an ‘inconsistent estate basis’ if the basis of property claimed on a return exceeds the basis as determined under section 1014(f).”

(d)

Effective Date.— The amendments made by this section shall apply to property with respect to which an estate tax return is filed after the date of the enactment of this Act.

SEC. 2005. Clarification of 6-Year Statute of Limitations in Case of Overstatement of Basis.

(a)

In General.— Section 6501(e)(1)(B) of the Internal Revenue Code of 1986 is amended—

(1)

by striking “ and” at the end of clause (i), by redesignating clause (ii) as clause (iii), and by inserting after clause (i) the following new clause:

“(ii) An understatement of gross income by reason of an overstatement of unrecovered cost or other basis is an omission from gross income; and”

, and

(2)

by inserting “ (other than in the case of an overstatement of unrecovered cost or other basis)” in clause (iii) (as so redesignated) after “ In determining the amount omitted from gross income”.

(b)

Effective Date.— The amendments made by this section shall apply to—

(1)

returns filed after the date of the enactment of this Act, and

(2)

returns filed on or before such date if the period specified in section 6501 of the Internal Revenue Code of 1986 (determined without regard to such amendments) for assessment of the taxes with respect to which such return relates has not expired as of such date.

SEC. 2006. Tax Return Due Dates.

(a)

Due Dates for Returns of Partnerships, S Corporations, and C Corporations.—

(1)

Partnerships and s corporations.—

(A)

In general.— So much of subsection (b) of 6072 of the Internal Revenue Code of 1986 as precedes the second sentence thereof is amended to read as follows:

“(b) Returns of Partnerships and S Corporations.—Returns of partnerships under section 6031 and returns of S corporations under sections 6012 and 6037 made on the basis of the calendar year shall be filed on or before the 15th day of March following the close of the calendar year, and such returns made on the basis of a fiscal year shall be filed on or before the 15th day of the third month following the close of the fiscal year.”

(B)

Conforming amendment.— Section 6072(a) of such Code is amended by striking “ 6017, or 6031” and inserting “ or 6017”.

(2)

Conforming amendments relating to c corporation due date of 15th day of fourth month following taxable year.—

(A)

Section 170(a)(2)(B) of such Code is amended by striking “ third month” and inserting “ fourth month”.

(B)

Section 563 of such Code is amended by striking “ third month” each place it appears and inserting “ fourth month”.

(C)

Section 1354(d)(1)(B)(i) of such Code is amended by striking “ 3d month” and inserting “ 4th month”.

(D)

Subsections (a) and (c) of section 6167 of such Code are each amended by striking “ third month” and inserting “ fourth month”.

(E)

Section 6425(a)(1) of such Code is amended by striking “ third month” and inserting “ fourth month”.

(F)

Subsections (b)(2)(A), (g)(3), and (h)(1) of section 6655 of such Code are each amended by striking “ 3rd month” and inserting “ 4th month”.

(G)

Section 6655(g)(4) of such Code is amended by redesignating subparagraph (E) as subparagraph (F) and by inserting after subparagraph (D) the following new subparagraph:

“(E) Subsection (b)(2)(A) shall be applied by substituting ‘3rd month’ for ‘4th month’.”

(3)

Effective dates.—

(A)

In general.— Except as provided in subparagraph (B), the amendments made by this subsection shall apply to returns for taxable years beginning after December 31, 2015.

(B)

Special rule for c corporations with fiscal years ending on june 30.— In the case of any C corporation with a taxable year ending on June 30, the amendments made by this subsection shall apply to returns for taxable years beginning after December 31, 2025.

(b)

Modification of Due Dates by Regulation.— In the case of returns for taxable years beginning after December 31, 2015, the Secretary of the Treasury, or the Secretary’s designee, shall modify appropriate regulations to provide as follows:

(1)

The maximum extension for the returns of partnerships filing Form 1065 shall be a 6-month period ending on September 15 for calendar year taxpayers.

(2)

The maximum extension for the returns of trusts filing Form 1041 shall be a 5½-month period ending on September 30 for calendar year taxpayers.

(3)

The maximum extension for the returns of employee benefit plans filing Form 5500 shall be an automatic 3½-month period ending on November 15 for calendar year plans.

(4)

The maximum extension for the returns of organizations exempt from income tax filing Form 990 (series) shall be an automatic 6-month period ending on November 15 for calendar year filers.

(5)

The maximum extension for the returns of organizations exempt from income tax that are required to file Form 4720 returns of excise taxes shall be an automatic 6-month period beginning on the due date for filing the return (without regard to any extensions).

(6)

The maximum extension for the returns of trusts required to file Form 5227 shall be an automatic 6-month period beginning on the due date for filing the return (without regard to any extensions).

(7)

The maximum extension for filing Form 6069, Return of Excise Tax on Excess Contributions to Black Lung Benefit Trust Under Section 4953 and Computation of Section 192 Deduction, shall be an automatic 6-month period beginning on the due date for filing the return (without regard to any extensions).

(8)

The maximum extension for a taxpayer required to file Form 8870 shall be an automatic 6-month period beginning on the due date for filing the return (without regard to any extensions).

(9)

The due date of Form 3520–A, Annual Information Return of a Foreign Trust with a United States Owner, shall be the 15th day of the 3d month after the close of the trust’s taxable year, and the maximum extension shall be a 6-month period beginning on such day.

(10)

The due date of Form 3520, Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts, for calendar year filers shall be April 15 with a maximum extension for a 6-month period ending on October 15.

(11)

The due date of FinCEN Report 114 (relating to Report of Foreign Bank and Financial Accounts) shall be April 15 with a maximum extension for a 6-month period ending on October 15 and with provision for an extension under rules similar to the rules in Treas. Reg. section 1.6081–5. For any taxpayer required to file such Form for the first time, any penalty for failure to timely request for, or file, an extension, may be waived by the Secretary.

(c)

Corporations Permitted Statutory Automatic 6-Month Extension of Income Tax Returns.—

(1)

In general.— Section 6081(b) of such Code is amended—

(A)

by striking “ 3 months” and inserting “ 6 months”, and

(B)

by adding at the end the following: “ In the case of any return for a taxable year of a C corporation which ends on December 31 and begins before January 1, 2026, the first sentence of this subsection shall be applied by substituting ‘5 months’ for ‘6 months’. In the case of any return for a taxable year of a C corporation which ends on June 30 and begins before January 1, 2026, the first sentence of this subsection shall be applied by substituting ‘7 months’ for ‘6 months’.”.

(2)

Effective date.— The amendments made by this subsection shall apply to returns for taxable years beginning after December 31, 2015.

SEC. 2007. Transfers of Excess Pension Assets to Retiree Health Accounts.

(a)

In General.— Section 420(b)(4) of the Internal Revenue Code of 1986 is amended by striking “ December 31, 2021” and inserting “ December 31, 2025”.

(b)

Conforming ERISA Amendments.—

(1)

Sections 101(e)(3), 403(c)(1), and 408(b)(13) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1021(e)(3), 1103(c)(1), 1108(b)(13)) are each amended by striking “ MAP–21’ ” and inserting “ Surface Transportation and Veterans Health Care Choice Improvement Act of 2015”.

(2)

Section 408(b)(13) of such Act (29 U.S.C. 1108(b)(13)) is amended by striking “ January 1, 2022” and inserting “ January 1, 2026”.

SEC. 2008. Equalization of Highway Trust Fund Excise Taxes on Liquefied Natural Gas, Liquefied Petroleum Gas, and Compressed Natural Gas.

(a)

Liquefied Petroleum Gas.—

(1)

In general.— Section 4041(a)(2)(B) of the Internal Revenue Code of 1986 is amended by striking “ and” at the end of clause (i), by redesignating clause (ii) as clause (iii), and by inserting after clause (i) the following new clause:

“(ii) in the case of liquefied petroleum gas, 18.3 cents per energy equivalent of a gallon of gasoline, and”

(2)

Energy equivalent of a gallon of gasoline.— Section 4041(a)(2) of such Code is amended by adding at the end the following:

“(C) Energy equivalent of a gallon of gasoline.—For purposes of this paragraph, the term ‘energy equivalent of a gallon of gasoline’ means, with respect to a liquefied petroleum gas fuel, the amount of such fuel having a Btu content of 115,400 (lower heating value). For purposes of the preceding sentence, a Btu content of 115,400 (lower heating value) is equal to 5.75 pounds of liquefied petroleum gas.”

(b)

Liquefied Natural Gas.—

(1)

In general.— Section 4041(a)(2)(B) of such Code, as amended by subsection (a)(1), is amended by striking “ and” at the end of clause (ii), by striking the period at the end of clause (iii) and inserting “ , and” and by inserting after clause (iii) the following new clause:

“(iv) in the case of liquefied natural gas, 24.3 cents per energy equivalent of a gallon of diesel.”

(2)

Energy equivalent of a gallon of diesel.— Section 4041(a)(2) of such Code, as amended by subsection (a)(2), is amended by adding at the end the following:

“(D) Energy equivalent of a gallon of diesel.—For purposes of this paragraph, the term ‘energy equivalent of a gallon of diesel’ means, with respect to a liquefied natural gas fuel, the amount of such fuel having a Btu content of 128,700 (lower heating value). For purposes of the preceding sentence, a Btu content of 128,700 (lower heating value) is equal to 6.06 pounds of liquefied natural gas.”

(3)

Conforming amendments.— Section 4041(a)(2)(B)(iii) of such Code, as redesignated by subsection (a)(1), is amended—

(A)

by striking “ liquefied natural gas,”, and

(B)

by striking “ peat), and” and inserting “ peat) and”.

(c)

Energy Equivalent of a Gallon of Gasoline to Compressed Natural Gas.— Section 4041(a)(3) of such Code is amended by adding at the end the following:

“(D) Energy equivalent of a gallon of gasoline.—For purposes of this paragraph, the term ‘energy equivalent of a gallon of gasoline’ means 5.66 pounds of compressed natural gas.”

(d)

Effective Date.— The amendments made by this section shall apply to any sale or use of fuel after December 31, 2015.

Title II — Revenue Provisions

TITLE II Revenue Provisions