H.R.4912 - Federal Government - To amend the Internal Revenue Code of 1986 with respect to the treatment of prepaid derivative contracts.

Amends the Internal Revenue Code to set forth rules for the treatment of income, loss, and distributions relating to a prepaid derivative contract. Defines "prepaid derivative contract" as any prepaid contract with a term longer than one year from the date of issue which is a derivative financial instrument with respect to any security, commodity, or financial index.