The Congressional Record is a unique source of public documentation. It started in 1873, documenting nearly all the major and minor policies being discussed and debated.
“THRIFT SAVINGS FUND CLARIFICATION ACT” mentioning the U.S. Dept. of Justice was published in the House of Representatives section on pages H5410-H5411 on July 31, 2012.
The publication is reproduced in full below:
THRIFT SAVINGS FUND CLARIFICATION ACT
Mr. CHAFFETZ. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 4365) to amend title 5, United States Code, to make clear that accounts in the Thrift Savings Fund are subject to certain Federal tax levies, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 4365
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. AMENDMENTS.
Section 8437(e)(3) of title 5, United States Code, is amended in the first sentence--
(1) by striking ``659)'' and inserting ``659),''; and
(2) by striking the period at the end and inserting the following: ``, and shall be subject to a Federal tax levy under section 6331 of the Internal Revenue Code of 1986.''.
SEC. 2. DISPOSITION OF AMOUNTS.
Any potential revenue gain attributable to the enactment of this Act, as determined by the Director of the Congressional Budget Office--
(1) shall be deposited in the general fund of the Treasury of the United States; and
(2) shall be used solely for purposes of deficit reduction.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from Utah (Mr. Chaffetz) and the gentlewoman from New York (Mrs. Maloney) each will control 20 minutes.
The Chair recognizes the gentleman from Utah.
General Leave
Mr. CHAFFETZ. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks and include extraneous materials on the bill under consideration.
The SPEAKER pro tempore. Is there objection to the request of the gentleman from Utah?
There was no objection.
Mr. CHAFFETZ. I yield such time as she may consume to the gentlewoman from New York (Ms. Buerkle), the prime sponsor and author of this piece of legislation.
Ms. BUERKLE. Mr. Speaker, I thank the gentleman for yielding to me, and I rise today in support of my legislation, H.R. 4365, which would make Thrift Savings Plans subject to Federal tax levies. Currently, TSP accounts are not listed in the IRS Code provisions identifying property that is exempt from tax. This bill makes clear that the TSP accounts are to be treated the same as 401(k)s and similar retirement and savings accounts held by private sector employees.
This bill is about fairness, Mr. Speaker. It will treat Federal employees the same as private sector employees.
H.R. 4365 adds needed clarification to existing law and provides guidance to the Thrift Board on how to honor IRS levies as they arise. In 2010, the Office of Legal Counsel at the Department of Justice concluded that TSPs are subject to levy. And last week, the Federal Retirement Thrift Investment Board, which oversees TSP accounts, wrote Congress asking that this issue be clarified expeditiously, noting that the lack of clarity is causing significant operational issues.
At the end of 2010, Mr. Speaker, the most recent year for which IRS data is available, 279,000 Federal employees owed $3.4 billion in Federal taxes. And the Joint Committee on Taxation estimates that enacting this legislation would increase revenues by $24 million over the 2012-2022 period.
Mr. Speaker, $24 million may seem like a small figure to some inside the Beltway. However, I believe any savings Congress can produce in today's fiscal environment is significant.
This is a commonsense solution which received bipartisan support in the House Oversight and Government Reform Committee. Similar legislation also received overwhelming support in the Senate. I urge passage of this bill.
Mrs. MALONEY. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, as a member of the Committee on Oversight and Government Reform, I am pleased to join my colleagues in the consideration of H.R. 4365, a bill to amend title 5, United States Code, to make clear that accounts in the Thrift Savings Fund are subject to Federal tax levies.
Current law authorizes the Internal Revenue Service to levy private sector 401(k) retirement plans in order to collect unpaid Federal taxes.
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However, due to an existing ambiguity between the Internal Revenue Code and the authorizing statute for the Federal Thrift Savings Plan, the IRS is unable to garnish TSP accounts to recover unpaid taxes from Federal employees and Members of Congress. In light of this statutory confusion, the Thrift Savings Plan's executive director requested clarification from our committee back in July of 2011 as to whether the TSP should honor Federal levies on TSP accounts.
H.R. 4365 would simply ensure that Federal TSP accounts and private sector 401(k) plans receive equal treatment in the area of tax administration and enforcement by amending the TSP authorizing statute to make clear that TSP fund accounts are, in fact, subject to Federal tax levies by the IRS. In addition, pursuant to an amendment offered by our distinguished ranking member, Mr. Cummings of Maryland, and included in the bill as reported by our committee, any potential revenue derived from the enactment of H.R. 4365 may be used only for the purposes of deficit reduction.
In supporting this bill, I would note that the vast majority of our public servants pay their taxes in a responsible and timely manner. In fact, according to the most recent IRS statistics, the tax delinquency rate among Federal employees in 2010 was 3.33 percent, far lower than that of the general public.
Mr. Speaker, I urge my colleagues on both sides of the aisle to support this reasonable legislation, and I yield back the balance of my time.
Mr. CHAFFETZ. Mr. Speaker, this is a good, commonsense piece of legislation, and I urge its adoption.
I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the gentleman from Utah (Mr. Chaffetz) that the House suspend the rules and pass the bill, H.R. 4365, as amended.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds being in the affirmative, the ayes have it.
Mrs. MALONEY. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further proceedings on this question will be postponed.
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