Summary

Prohibits certain Congressional officials from owning specified financial investments and changes tax rules so those officers are treated under the Internal Revenue Code rules that govern sales of property for conflict-of-interest divestitures. It directs that certificates of divestiture issued by Congressional ethics committees can be used to meet an Internal Revenue Code certificate requirement when covered officials sell or transfer assets to comply with the new conflict-of-interest rules. The measure adds a new chapter to Title 5 to create the prohibition and amends 26 U.S.C. §1043 to integrate the new conflict-of-interest regime with existing tax treatment for such sales.

Key Points

• Creates a new Title 5 chapter that bars certain Congressional officials from owning specified financial investments.
• Amends 26 U.S.C. §1043 to treat the new Title 5 conflict-of-interest statute as a federal conflict-of-interest law for tax purposes.
• Designates covered individuals (per 5 U.S.C. §13151) as "eligible persons" under the tax provision that governs transfers made to resolve conflicts of interest.
• Allows a divestiture certificate issued by a Congressional ethics committee to satisfy the certificate requirement in the tax code for covered individuals.
• Makes a clerical insertion to the table of sections for the new Title 5 chapter.
• Affects covered individuals and Congressional ethics committees by changing how divestiture transactions interact with federal tax rules.
• Does not include specified funding, fiscal-year appropriations, or explicit effective dates for substantive provisions in the provided text.
• Requires coordination between ethics committees and tax administration for compliance and potential tax relief on qualifying transfers.

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