SEC. 31001. DEBT — Internal Revenue Bulletin 1996-38

IMPROVEMENT ACT OF 1996.

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(g)(2) INTERNAL REVENUE CODE OF 1986.—Subparagraph (A) of section 6103(1)(10) of the Internal Revenue Code of 1986 (26 U.S.C. 6103(1)(10)) is amended by inserting ‘‘and to officers and employees of the Department of the Treasury in connection with such reduction’’ after ‘‘6402’’.

(i)(2) INCLUDED FEDERAL LOAN PROGRAM DEFINED.—Subparagraph (C) of section 6103(1)(3) of the Internal Revenue Code of 1986 (relating to disclosure that applicant for Federal loan has tax delinquent account) is amended to read as follows:

‘‘(C) INCLUDED FEDERAL LOAN PROGRAM DEFINED.—For purposes of this paragraph, the term ‘included Federal loan program’ means any program under which the United States or a Federal agency makes, guarantees, or insures loans.’’.

- - - - (m)(2) RETURNS RELATING TO

CANCELLATION OF INDEBTEDNESS BY CERTAIN ENTITIES.—

(A) IN GENERAL.—Subsection (a) of section 6050P of the Internal Revenue Code of 1986 (relating to returns relating to the cancellation of indebtedness by certain financial entities) is amended by striking ‘‘applicable financial entity’’ and inserting ‘‘applicable entity’’.

(B) ENTITIES TO WHICH REQUIREMENT APPLIES.—Subsection (c) of section 6050P of such Code is amended—

(i) by redesignating paragraphs (1) and (2) as paragraphs (2) and (3), respectively, and inserting before paragraph (2) (as so redesignated) the following new paragraph:

‘‘(1) APPLICABLE ENTITY.— The term ‘applicable entity’ means—

‘‘(A) an executive, judicial, or legislative agency (as defined in section 3701(a)(4) of title 31, United States Code), and

‘‘(B) an applicable financial entity.’’, and

(ii) in paragraph (3), as so redesignated, by striking ‘‘(1)(B)’’ and inserting ‘‘(1)(A) or (2)(B)’’.

‘‘(e) ALTERNATIVE PROCEDURE.—In lieu of making a return

required under subsection (a), an agency described in subsection (c)(1)(A) may submit to the Secretary (at such time and in such form as the Secretary may by regulations prescribe) information sufficient for the Secretary to complete such a return on behalf of such agency. Upon receipt of such information, the Secretary shall complete such return and provide a copy of such return to such agency.’’

(D) CONFORMING AMENDMENTS.—

(i) Subsection (d) of section 6050P of such Code is amended by striking ‘‘applicable financial entity’’ and inserting ‘‘applicable entity’’.

(ii) The heading of section 6050P of such Code is amended to read as follows:

‘‘SEC. 6050P. RETURNS RELATING TO THE CANCELLATION OF INDEBTEDNESS BY CERTAIN ENTITIES.’’

(iii) 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 6050P and inserting the following new item:

‘‘Section 6050P. Returns relating to the cancellation of indebtedness by certain entities.’’

(n) Effective October 1, 1995, section 11 of the Administrative Dispute Resolution Act (Public Law 101–552, U.S.C. 571 note) shall not apply to the amendment made by section 8(b) of such Act.

- - - - (u)(2) FEDERAL AGENCY DEFINED.—Section 6402(f) of the Internal

Revenue Code of 1986 (26 U.S.C. 6402(f)) is amended to read as follows: ‘‘(f) FEDERAL AGENCY.—For purposes of this section, the term ‘Federal agency’ means a department, agency or instrumentality of the United States, and includes a Government corporation (as such term is defined in section 103 of title 5, United States Code).’’.

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1 This publication of the law is restricted to ‘‘(e) ALTERNATIVE PROCE- Approved April 26, 1996. excerpts involving tax matters. DURE.—In lieu of making a return

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