# Pub. L. 104-191: changes to the Internal Revenue Code 1996-08-21, 110 Stat. 2048. Source: . ## Legislative history - Bill: [H.R. 3103](https://www.congress.gov/bill/104th-congress/house-bill/3103) - House report: [H. Rept. 104-496](https://www.govinfo.gov/content/pkg/CRPT-104hrpt496/html/CRPT-104hrpt496.htm) - Senate report: [S. Rept. 104-156](https://www.govinfo.gov/content/pkg/CRPT-104srpt156/html/CRPT-104srpt156.htm) - Conference report: [H. Rept. 104-736](https://www.govinfo.gov/content/pkg/CRPT-104hrpt736/html/CRPT-104hrpt736.htm) ## § 62: Adjusted gross income defined - § 62(a)(16): Pub. L. 104–191 added par. (16). ## § 72: Annuities; certain proceeds of endowment and life insurance contracts - § 72(t)(2)(B): Pub. L. 104–191, § 361(c), substituted “, (C), or (D)” for “or (C)”. - § 72(t)(2)(D): Pub. L. 104–191, § 361(b), added subpar. (D). - § 72(t)(3)(A): Pub. L. 104–191, § 361(a), struck out “(B),” after “Subparagraphs (A)(v),”. ## § 101: Certain death benefits - § 101(g): Pub. L. 104–191 added subsec. (g). ## § 104: Compensation for injuries or sickness - § 104(a)(3): Pub. L. 104–191 inserted “(or through an arrangement having the effect of accident or health insurance)” after “accident or health insurance”. ## § 106: Contributions by employer to accident and health plans - § 106: Pub. L. 104–191, § 301(c)(1), amended text generally. Prior to amendment, text read as follows: “Gross income of an employee does not include employer-provided coverage under an accident or health plan.” - § 106(c): Pub. L. 104–191, § 321(c)(2), added subsec. (c). ## § 125: Cafeteria plans - § 125(f): Pub. L. 104–191, § 321(c)(1), inserted at end “Such term shall not include any product which is advertised, marketed, or offered as long-term care insurance.” - § 125(f): Pub. L. 104–191, § 301(d), inserted “106(b),” before “117”. ## § 162: Trade or business expenses - § 162(l)(1): Pub. L. 104–191, § 311(a), amended par. (1) generally. Prior to amendment, par. (1) read as follows: - § 162(l)(2)(C): Pub. L. 104–191, § 322(b)(2)(B), added subpar. (C). ## § 213: Medical, dental, etc., expenses - § 213(d)(1): Pub. L. 104–191, § 322(b)(2)(A), inserted concluding provisions “In the case of a qualified long-term care insurance contract (as defined in section 7702B(b)), only eligible long-term care premiums (as defined in paragraph (10)) shall be taken into account under subparagraph (D).” - § 213(d)(1)(B): Pub. L. 104–191, § 322(a), struck out “or” at end. - § 213(d)(1)(C): Pub. L. 104–191, § 322(a), added subpar. (C). Former subpar. (C) redesignated (D). - § 213(d)(1)(D): Pub. L. 104–191, § 322(b)(1), inserted before period “or for any qualified long-term care insurance contract (as defined in section 7702B(b))”. - § 213(d)(1)(D): Pub. L. 104–191, § 322(a), redesignated subpar. (C) as (D). - § 213(d)(6): Pub. L. 104–191, § 322(b)(3)(A), substituted “subparagraphs (A), (B), and (C)” for “subparagraphs (A) and (B)” in introductory provisions. - § 213(d)(6)(A): Pub. L. 104–191, § 322(b)(3)(B), substituted “paragraph (1)(D)” for “paragraph (1)(C)”. - § 213(d)(7): Pub. L. 104–191, § 322(b)(4), substituted “subparagraphs (A), (B), and (C)” for “subparagraphs (A) and (B)”. - § 213(d)(10), § 213(d)(11): Pub. L. 104–191, § 322(b)(2)(C), added pars. (10) and (11). ## § 220: Archer MSAs - Enacted 26 U.S.C. § 220. ## § 226: Cross reference - § 226: Pub. L. 104–191 renumbered section 220 of this title as this section. ## § 264: Certain amounts paid in connection with insurance contracts - § 264(a)(4): Pub. L. 104–191, § 501(a)(1), (b)(1), in introductory provisions, substituted “Except as provided in subsection (d), any” for “Any” and inserted “, or any endowment or annuity contracts owned by the taxpayer covering any individual,” after “the life of any individual”. - § 264(a)(4): Pub. L. 104–191, § 501(a)(2), struck out “to the extent that the aggregate amount of such indebtedness with respect to policies covering such individual exceeds $50,000” after “carried on by the taxpayer” in concluding provisions. - § 264(d): Pub. L. 104–191, § 501(b)(2), added subsec. (d). ## § 501: Exemption from tax on corporations, certain trusts, etc. - § 501(c)(26): Pub. L. 104–191, § 341(a), added par. (26). - § 501(c)(27): Pub. L. 104–191, § 342(a), added par. (27). ## § 807: Rules for certain reserves - § 807(d)(3)(A)(iii): Pub. L. 104–191 inserted “(other than a qualified long-term care insurance contract, as defined in section 7702B(b))” after “insurance contract”. ## § 818: Other definitions and special rules - § 818(g): Pub. L. 104–191 added subsec. (g). ## § 833: Treatment of Blue Cross and Blue Shield organizations, etc. - § 833(c)(4): Pub. L. 104–191 added par. (4). ## § 848: Capitalization of certain policy acquisition expenses - § 848(e)(1)(B)(iv): Pub. L. 104–191 added cl. (iv). ## § 877: Expatriation to avoid tax - § 877(a): Pub. L. 104–191, § 511(a), amended subsec. (a) generally. Prior to amendment, subsec. (a) read as follows: - § 877(a)(1): Pub. L. 104–191, § 511(d)(2), inserted “(after any reduction in such tax under the last sentence of such subsection)” after “such subsection”. - § 877(b): Pub. L. 104–191, § 511(d)(1), inserted at end “The tax imposed solely by reason of this section shall be reduced (but not below zero) by the amount of any income, war profits, and excess profits taxes (within the meaning of section 903) paid to any foreign country or possession of the United States on any income of the taxpayer on which tax is imposed solely by reason of this section.” - § 877(b)(1): Pub. L. 104–191, § 511(b)(2), substituted “subsection (d)” for “subsection (c)”. - § 877(c): Pub. L. 104–191, § 511(b)(1), added subsec. (c). Former subsec. (c) redesignated (d). - § 877(d): Pub. L. 104–191, § 511(c), amended subsec. (d) generally. Prior to amendment, subsec. (d) read as follows: - § 877(d): Pub. L. 104–191, § 511(b)(1), redesignated subsec. (c) as (d) and struck out former subsec. (d) which read as follows: - § 877(e), § 877(f): Pub. L. 104–191, § 511(f)(1), added subsec. (e) and redesignated former subsec. (e) as (f). ## § 2107: Expatriation to avoid tax - § 2107(a): Pub. L. 104–191, § 511(e)(1)(A), substituted “Treatment of expatriates” for “Rate of tax” in heading and amended text generally. Prior to amendment, text read as follows: “A tax computed in accordance with the table contained in section 2001 is hereby imposed on the transfer of the taxable estate, determined as provided in section 2106, of every decedent nonresident not a citizen of the United States dying after November 13, 1966, if after March 8, 1965, and within the 10-year period ending with the date of death such decedent lost United States citizenship, unless such loss did not have for one of its principal purposes the avoidance of taxes under this subtitle or subtitle A.” - § 2107(b)(2): Pub. L. 104–191, § 511(e)(1)(C), substituted “more than 50 percent of—” for “more than 50 percent of the total combined voting power of all classes of stock entitled to vote of such foreign corporation,” and added subpars. (A) and (B). - § 2107(c)(2), § 2107(c)(3): Pub. L. 104–191, § 511(e)(1)(B), added par. (2) and redesignated former par. (2) as (3). - § 2107(d): Pub. L. 104–191, § 511(f)(2)(A), redesignated subsec. (e) as (d) and struck out former subsec. (d) which read as follows: - § 2107(e): Pub. L. 104–191, § 511(f)(2)(A), added subsec. (e). Former subsec. (e) redesignated (d). ## § 2501: Imposition of tax - § 2501(a)(3): Pub. L. 104–191, § 511(e)(2), substituted “Exception” for “Exceptions” in heading and amended text generally. Prior to amendment, text read as follows: “Paragraph (2) shall not apply in the case of a donor who at any time after March 8, 1965, and within the 10-year period ending with the date of transfer lost United States citizenship unless— - § 2501(a)(3): Pub. L. 104–191, § 511(f)(2)(B), added subpar. (E). ## § 3231: Definitions - § 3231(e)(10): Pub. L. 104–191 added par. (10). ## § 3306: Definitions - § 3306(b)(17): Pub. L. 104–191 added par. (17). ## § 3401: Definitions - § 3401(a)(21): Pub. L. 104–191 added par. (21). ## § 4973: Tax on excess contributions to certain tax-favored accounts and annuities - § 4973: Pub. L. 104–191, § 301(e)(1), inserted “medical savings accounts,” after “accounts,” in section catchline. - § 4973(a): Pub. L. 104–191, § 301(e)(1)–(3), struck out “or” at end of par. (1), added par. (2), and redesignated former par. (2) as (3). - § 4973(d): Pub. L. 104–191, § 301(e)(4), added subsec. (d). ## § 4975: Tax on prohibited transactions - § 4975(c)(4): Pub. L. 104–191, § 301(f)(1), added par. (4). - § 4975(e)(1): Pub. L. 104–191, § 301(f)(2), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “For purposes of this section, the term ‘plan’ means a trust described in section 401(a) which forms a part of a plan, or a plan described in section 403(a), which trust or plan is exempt from tax under section 501(a), an individual retirement account described in section 408(a) or an individual retirement annuity described in section 408(b) (or a trust, plan, account, or annuity which, at any time, has been determined by the Secretary to be such a trust, plan, or account).” ## § 4980B: Failure to satisfy continuation coverage requirements of group health plans - § 4980B(f)(2)(B)(i): Pub. L. 104–191, § 421(c)(1)(A), in concluding provisions, substituted “at any time during the first 60 days of continuation coverage under this section” for “at the time of a qualifying event described in paragraph (3)(B)”, struck out “with respect to such event” after “(II) to 18 months”, and inserted “(with respect to all qualified beneficiaries)” after “29 months”. - § 4980B(f)(2)(B)(iv)(I): Pub. L. 104–191, § 421(c)(1)(B), inserted “(other than such an exclusion or limitation which does not apply to (or is satisfied by) such beneficiary by reason of chapter 100 of this title, part 7 of subtitle B of title I of the Employee Retirement Income Security Act of 1974, or title XXVII of the Public Health Service Act)” before “, or”. - § 4980B(f)(2)(B)(v): Pub. L. 104–191, § 421(c)(1)(C), substituted “at any time during the first 60 days of continuation coverage under this section” for “at the time of a qualifying event described in paragraph (3)(B)”. - § 4980B(f)(6)(C): Pub. L. 104–191, § 421(c)(2), substituted “at any time during the first 60 days of continuation coverage under this section” for “at the time of a qualifying event described in paragraph (3)(B)”. - § 4980B(g)(1)(A): Pub. L. 104–191, § 421(c)(3), inserted at end “Such term shall also include a child who is born to or placed for adoption with the covered employee during the period of continuation coverage under this section.” - § 4980B(g)(2): Pub. L. 104–191, § 321(d)(1), inserted at end “Such term shall not include any plan substantially all of the coverage under which is for qualified long-term care services (as defined in section 7702B(c)).” ## § 4980C: Requirements for issuers of qualified long-term care insurance contracts - Enacted 26 U.S.C. § 4980C. ## § 4980D: Failure to meet certain group health plan requirements - Enacted 26 U.S.C. § 4980D. ## § 4980E: Failure of employer to make comparable Archer MSA contributions - Enacted 26 U.S.C. § 4980E. ## § 6039G: Information on individuals losing United States citizenship - Enacted 26 U.S.C. § 6039G. ## § 6050Q: Certain long-term care benefits - Enacted 26 U.S.C. § 6050Q. ## § 6051: Receipts for employees - § 6051(a)(11): Pub. L. 104–191 added par. (11). ## § 6693: Failure to provide reports on certain tax-favored accounts or annuities; penalties relating to designated nondeductible contributions - § 6693(a): Pub. L. 104–191 inserted heading and amended text generally. Prior to amendment, text read as follows: “The person required by subsection (i) or (l) of section 408 to file a report regarding an individual retirement account or individual retirement annuity at the time and in the manner required by such subsection shall pay a penalty of $50 for each failure unless it is shown that such failure is due to reasonable cause. 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)(W).” ## § 6724: Waiver; definitions and special rules - § 6724(d)(1)(B)(ix), § 6724(d)(1)(B)(x): Pub. L. 104–191, § 323(b)(1), added cl. (ix) and redesignated former cl. (ix) as (x). Former cl. (x) redesignated (xi). - § 6724(d)(1)(B)(xi): Pub. L. 104–191, § 323(b)(1), redesignated cl. (x) as (xi). Former cl. (xi) redesignated (xii). - § 6724(d)(1)(B)(xii): Pub. L. 104–191, § 323(b)(1), redesignated cl. (xi) as (xii). Former cl. (xii) redesignated (xiii). - § 6724(d)(1)(B)(xiii): Pub. L. 104–191, § 323(b)(1), redesignated cl. (xii) as (xiii). Former cl. (xiii) redesignated (xiv). - § 6724(d)(1)(B)(xiv), § 6724(d)(1)(B)(xv): Pub. L. 104–191, § 323(b)(1), redesignated cls. (xiii) and (xiv) as (xiv) and (xv), respectively. - § 6724(d)(2)(Q): Pub. L. 104–191, § 323(b)(2), added subpar. (Q). Former subpar. (Q) redesignated (R). - § 6724(d)(2)(R): Pub. L. 104–191, § 323(b)(2), redesignated subpar. (Q) as (R). Former subpar. (R) redesignated (S). - § 6724(d)(2)(S): Pub. L. 104–191, § 323(b)(2), redesignated subpar. (R) as (S). Former subpar. (S) redesignated (T). - § 6724(d)(2)(T): Pub. L. 104–191, § 323(b)(2), redesignated subpar. (S) as (T). Former subpar. (T) redesignated (U). - § 6724(d)(2)(U): Pub. L. 104–191, § 323(d)(1), redesignated subpar. (T), relating to section 6053(b) or (c), as (U). ## § 7702B: Treatment of qualified long-term care insurance - Enacted 26 U.S.C. § 7702B. - § 7702B(g): Pub. L. 104–191, § 325, added subsec. (g). ## § 9801: Increased portability through limitation on preexisting condition exclusions - Enacted 26 U.S.C. § 9801. ## § 9802: Prohibiting discrimination against individual participants and beneficiaries based on health status - Enacted 26 U.S.C. § 9802. ## § 9803: Guaranteed renewability in multi­employer plans and certain multiple employer welfare arrangements - Enacted 26 U.S.C. § 9803. ## § 9831: General exceptions - Enacted 26 U.S.C. § 9831. ## § 9832: Definitions - Enacted 26 U.S.C. § 9832. ## § 9833: Regulations - Enacted 26 U.S.C. § 9833.