WASHINGTON, D.C. - Sen. Rand Paul today reintroduced S.663, a bill to repeal certain provisions of the Foreign Account Tax Compliance Act (FATCA) and put an end to a defective bill that does not accomplish its objective of ending tax evasion.
 
Text for bill, S.663, can be found below.
 
"FATCA is in complete violation of every Americans' constitutional right to privacy and adds burdensome regulations that negatively impact our economy. It is a defective law which disregards  the mutual respect of sovereignty among nations and drains money from the federal treasury, on top of discouraging overseas investment in the United States. My bill will reverse the negative aspects FATCA has on the economy, prevent the government from bulk collecting U.S. Citizen's financial data, and preserve the constitutional rights for all Americans," Sen. Paul said.  
 
TEXT:
 
To repeal the violation of sovereign nations' laws and privacy matters.
 
SECTION 1. REPEAL OF WITHHOLDING AND REPORTING WITH RESPECT TO CERTAIN FOREIGN ACCOUNTS.
 
(a) In General- The Internal Revenue Code of 1986 is amended by striking chapter 4.
 
(b) Conforming Amendments for Rules for Electronically Filed Returns- Section 6011(e)(4) of such Code is amended--
 
(1) by striking '(as defined in section 1471(d)(5))' and inserting '(as defined in section 6038D(h)(3))', and
 
(2) by striking 'or 1474(a)'.
 
(c) Conforming Amendment Related to Substitute Dividends- Section 871(l) of such Code is amended by striking 'chapters 3 and 4' both places it appears and inserting 'chapter 3'.
 
(d) Other Conforming Amendments-
 
(1) Section 6414 of such Code is amended by striking 'or 4'.
 
(2) Paragraph (1) of section 6501(b) of such Code is amended by striking '4,'.
 
(3) Paragraph (2) of section 6501(b) of such Code is amended--
 
                                    (A) by striking '4,', and
 
(B) by striking 'AND WITHOLDING TAXES' in the heading and inserting 'TAXES AND TAX IMPOSED BY CHAPTER 3'.
 
(4) Paragraph (3) of section 6513(b) of such Code is amended--
 
            (A) by striking 'or 4', and
 
            (B) by striking 'or 1474(b)'.
 
(5) Section 6513(c) of such Code is amended by striking '4,'.
 
(6) Section 6611(e)(4) of the Internal Revenue Code of 1986 is amended by striking 'or 4'.
 
(7) Paragraph (1) of section 6724(d) of such Code is amended by striking 'under chapter 4 or'.
 
(8) Paragraph (2) of section 6724(d) of such Code is amended by striking 'or 4'.
 
(e) Effective Date- The amendments made by this section shall apply to payments made after the date of the enactment of this Act.
 
SEC. 2. REPEAL OF INFORMATION REPORTING WITH RESPECT TO FOREIGN FINANCIAL ASSETS.
 
(a) In General- Subpart A of part III of subchapter A of chapter 61 of the Internal Revenue Code of 1986 is amended by striking section 6038D.
 
(b) Repeal of Modification of Statute of Limitations for Significant Omission of Income in Connection With Foreign Assets-
 
(1) Paragraph (1) of section 6501(e) of the Internal Revenue Code of 1986 is amended by striking subparagraph (A) and by redesignating subparagraphs (B) and (C) as subparagraphs (A) and (B), respectively.
 
(2) Subparagraph (A) of section 6501(e) of such Code, as redesignated by paragraph (1), is amended by striking all that precedes clause (i) and inserting the following:
 
'(A) GENERAL RULE- If the taxpayer omits from gross income an amount properly included therein which is in excess of 25 percent of the amount of gross income stated in the return, the tax may be assessed, or a proceeding in court for the collection of such tax may be begun without assessment, at any time within 6 years after the return was filed. For purposes of this subparagraph--'.
 
(3) Paragraph (2) of section 6501(e) of such Code is amended by striking 'and such amount is described in clause (i) or (ii) of section 6501(e)(1)(A)' and inserting 'which is in excess of 25 percent of the amount of gross income stated in its return'.
 
(4) Paragraph (8) of section 6501(c) is amended--
 
            (A) by striking 'pursuant to an election under section 1295(b) or',
 
            (B) by striking '1298(f)', and
 
            (C) by striking '6038D,'.
 
(c) Clerical Amendment- The table of sections for subpart A of part III of subchapter A of chapter 61 of such Code is amended by striking the item related to section 6038D.
 
(d) Effective Date-
 
(1) IN GENERAL- Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act.
 
(2) RETURNS- The amendments made by subsection (b) shall apply to returns filed after the date of the enactment of this Act.
 
SEC. 3. REPEAL OF PENALTIES FOR UNDERPAYMENTS ATTRIBUTABLE TO UNDISCLOSED FOREIGN FINANCIAL ASSETS.
 
(a) In General- Section 6662 of the Internal Revenue Code of 1986 is amended--
 
(1) in subsection (b), by striking paragraph (7), and
 
(2) by striking subsection (j).
 
(b) Effective Date- The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act.
 
SEC. 4. REPEAL OF REPORTING OF ACTIVITIES WITH RESPECT TO PASSIVE FOREIGN INVESTMENT COMPANIES.
 
(a) In General- Section 1298 of the Internal Revenue Code of 1986 is amended by striking subsection (f) and by redesignating subsection (g) as subsection (f).
 
(b) Conforming Amendment- Section 1291(e) of such Code is amended by striking 'and (d)' and inserting ', (d), and (f)'.
 
(c) Effective Date- The amendments made by this section shall take effect on the date of the enactment of this Act.
 
SEC. 5. REPEAL OF REPORTING REQUIREMENT FOR UNITED STATES OWNERS OF FOREIGN TRUSTS.
 
(a) In General- Paragraph (1) of section 6048(b) is amended by striking 'shall submit such information as the Secretary may prescribe with respect to such trust for such year and'.
 
(b) Effective Date- The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act.
 
SEC. 6. REPEAL OF MINIMUM PENALTY WITH RESPECT TO FAILURE TO REPORT ON CERTAIN FOREIGN TRUSTS.
 
(a) In General- Section 6677(a) of the Internal Revenue Code of 1986 is amended--
 
(1) by striking 'the greater of $10,000 or', and
 
(2) by striking the last sentence and inserting the following: 'In no event shall the penalty under this subsection with respect to any failure exceed the gross reportable amount.'.
 
(b) Effective Date- The amendments made by this section shall apply to notices and returns required to be filed after the date of the enactment of this Act.