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[House Report 114-66]
[From the U.S. Government Publishing Office]

114th Congress       }                             [       Report
                        HOUSE OF REPRESENTATIVES
 1st Session         }                             [       114-66
===================================================================
 
               PREVENT TARGETING AT THE IRS ACT

                                _______
                                

 April 13, 2015.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

Mr. Ryan of Wisconsin, from the Committee on Ways and Means, submitted 
                             the following

                              R E P O R T

                        [To accompany H.R. 709]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Ways and Means, to whom was referred the 
bill (H.R. 709) to provide for the termination of employment of 
employees of the Internal Revenue Service who take certain 
official actions for political purposes, having considered the 
same, report favorably thereon with an amendment and recommend 
that the bill as amended do pass.

                                CONTENTS

                                                                   Page
 I. SUMMARY AND BACKGROUND............................................2
        A. Purpose and Summary...................................     2
        B. Background and Need for Legislation...................     2
        C. Legislative History...................................     2
II. EXPLANATION OF THE BILL...........................................3
        A. Termination of Employment of Internal Revenue Service 
            Employees for Taking Official Actions for Political 
            Purposes (sec. 2 of the bill and sec. 1203(b) of the 
            Code)................................................     3
III.VOTES OF THE COMMITTEE............................................5

IV. BUDGET EFFECTS OF THE BILL........................................5
        A. Committee Estimate of Budgetary Effects...............     5
        B. Statement Regarding New Budget Authority and Tax 
            Expenditures Budget Authority........................     5
        C. Cost Estimate Prepared by the Congressional Budget 
            Office...............................................     5
 V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE........6
        A. Committee Oversight Findings and Recommendations......     6
        B. Statement of General Performance Goals and Objectives.     6
        C. Information Relating to Unfunded Mandates.............     6
        D. Applicability of House Rule XXI 5(b)..................     7
        E. Tax Complexity Analysis...............................     7
        F. Congressional Earmarks, Limited Tax Benefits, and 
            Limited Tariff Benefits..............................     7
        G. Duplication of Federal Programs.......................     7
        H. Disclosure of Directed Rule Makings...................     8
VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED.............8
        A. Text of Existing Law Amended or Repealed by the Bill, 
            as Reported..........................................     8
        B. Changes in Existing Law Proposed by the Bill, as 
            Reported.............................................    10

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Prevent Targeting at the IRS Act''.

SEC. 2. TERMINATION OF EMPLOYMENT OF INTERNAL REVENUE SERVICE EMPLOYEES 
                    FOR TAKING OFFICIAL ACTIONS FOR POLITICAL PURPOSES.

  (a) In General.--Paragraph (10) of section 1203(b) of the Internal 
Revenue Service Restructuring and Reform Act of 1998 is amended to read 
as follows:
          ``(10) performing, delaying, or failing to perform (or 
        threatening to perform, delay, or fail to perform) any official 
        action (including any audit) with respect to a taxpayer for 
        purpose of extracting personal gain or benefit or for a 
        political purpose.''.
  (b) Effective Date.--The amendment made by this section shall take 
effect on the date of the enactment of this Act.

                       I. SUMMARY AND BACKGROUND

                         A. Purpose and Summary

    H.R. 709, reported by the Committee on Ways and Means, 
clarifies that an employee of the Internal Revenue Service 
(``IRS'') may be terminated for using the employee's position 
for a political or personal purpose by performing, delaying, 
threatening or failing to perform any official action 
(including an audit).

                 B. Background and Need for Legislation

    In 1998, Congress enacted the IRS Restructuring and Reform 
Act of 1998 (Pub. L. 105-206), which included a list of ``10 
Deadly Sins,'' conduct for which an IRS employee must be 
terminated unless such dismissal is overruled personally by the 
IRS Commissioner. Under current law, an IRS employee who has 
been found to have threatened to audit a taxpayer for the 
purpose of the employee's personal gain or benefit is subject 
to dismissal. The bill expands grounds for termination of 
employment of an IRS employee to include an IRS employee 
performing, delaying, or failing to perform any official action 
(including an audit) for the purpose of extracting personal 
gain or benefit, or for a political purpose. In the course of 
the Committee's investigation of IRS's targeting of certain 
social-welfare organizations, it was apparent that there is a 
gap in the law such that an IRS employee's use of his or her 
official position for political purposes does not constitute 
misconduct requiring mandatory termination.

                         C. Legislative History

Background

    H.R. 709 was introduced on February 4, 2015, and was 
referred to the Committee on Ways and Means. The same 
legislation, H.R. 2565, passed the House of Representatives in 
the 113th Congress under suspension of the rules by voice vote 
on July 31, 2014.

Committee action

    The Committee on Ways and Means marked up H.R. 709, the 
``Prevent Targeting at the IRS Act,'' on March 25, 2015, and 
ordered the bill, as amended, favorably reported (with a quorum 
being present).

Committee hearings

    The need for reform of the rules governing IRS employee 
conduct to prevent political targeting was discussed during 
multiple Committee hearings during the 113th Congress:
     Full Committee Hearing on IRS Targeting 
Conservative Groups (May 17, 2013).
     Full Committee Hearing Organizations Targeted by 
Internal Revenue Service for Their Personal Beliefs (June 4, 
2013).
     Full Committee Hearing on the Status of Internal 
Revenue Service's Review of Taxpayer Targeting Practices (June 
27, 2013).
     Oversight Subcommittee Hearing on the IRS Exempt 
Organizations Division Post-U.S. Treasury Inspector General for 
Tax Administration Audit Report (September 18, 2013).
     Oversight Subcommittee Hearing with IRS 
Commissioner Koskinen (February 5, 2014).
     Oversight Subcommittee Hearing on the IRS 
Operations and the 2014 Tax Return Filing Season (May 7, 2014).
     Full Committee Hearing with IRS Commissioner 
Koskinen (June 20, 2014).

                      II. EXPLANATION OF THE BILL

A. Termination of Employment of Internal Revenue Service Employees for 
Taking Official Actions for Political Purposes (sec. 2 of the bill and 
                       sec. 1203(b) of the Code)

                              PRESENT LAW

    The IRS Restructuring and Reform Act of 1998 (the 
``Restructuring Act'')\1\ requires the IRS to terminate an 
employee for certain proven violations committed by the 
employee in connection with the performance of official duties. 
The violations include: (1) willful failure to obtain the 
required approval signatures on documents authorizing the 
seizure of a taxpayer's home, personal belongings, or business 
assets; (2) providing a false statement under oath material to 
a matter involving a taxpayer; (3) with respect to a taxpayer, 
taxpayer representative, or other IRS employee, the violation 
of any right under the U.S. Constitution, or any civil right 
established under titles VI or VII of the Civil Rights Act of 
1964, title IX of the Educational Amendments of 1972, the Age 
Discrimination in Employment Act of 1967, the Age 
Discrimination Act of 1975, sections 501 or 504 of the 
Rehabilitation Act of 1973 and title I of the Americans with 
Disabilities Act of 1990; (4) falsifying or destroying 
documents to conceal mistakes made by any employee with respect 
to a matter involving a taxpayer or a taxpayer representative; 
(5) assault or battery on a taxpayer or other IRS employee, but 
only if there is a criminal conviction or a final judgment by a 
court in a civil case, with respect to the assault or battery; 
(6) violations of the Internal Revenue Code, Treasury 
Regulations, or policies of the IRS (including the Internal 
Revenue Manual) for the purpose of retaliating or harassing a 
taxpayer or other IRS employee; (7) willful misuse of section 
6103 for the purpose of concealing data from a Congressional 
inquiry; (8) willful failure to file any tax return required 
under the Code on or before the due date (including extensions) 
unless failure is due to reasonable cause; (9) willful 
understatement of Federal tax liability, unless such 
understatement is due to reasonable cause; and (10) threatening 
to take an official action, such as an audit, or delay or fail 
to take official action with respect to a taxpayer for the 
purpose of extracting personal gain or benefit.
---------------------------------------------------------------------------
    \1\Pub. L. No. 105-206, sec. 1203(b), July 22, 1998.
---------------------------------------------------------------------------
    The Act provides non-delegable authority to the 
Commissioner to determine that mitigating factors exist that, 
in the Commissioner's sole discretion, mitigate against 
terminating the employee. The Act also provides that the 
Commissioner, in his sole discretion, may establish a procedure 
to determine whether an individual should be referred for such 
a determination by the Commissioner. The Treasury Inspector 
General (``IG'') is required to track employee terminations and 
terminations that would have occurred had the Commissioner not 
determined that there were mitigating factors and include such 
information in the IG's annual report.

                           REASONS FOR CHANGE

    The Committee has found examples of IRS employees selecting 
taxpayers for examination or taken other adverse official 
actions with respect to taxpayers on the basis of their names 
or policy positions. Such conduct is unacceptable, yet present 
law does not clearly provide for the Commissioner to dismiss 
employees on the basis of such conduct, although similar 
conduct motivated by personal gain is within the scope of the 
offenses for which the Restructuring Act prescribes termination 
of employment. The Committee believes it is imperative that the 
public trust that actions of the IRS are not politically 
motivated, and that such trust is undermined by the lack of 
clear direction to the Commissioner that such conduct is 
punishable by termination.

                        EXPLANATION OF PROVISION

    The provision amends the Restructuring Act to expand the 
scope of the violation concerning an IRS employee threatening 
to audit a taxpayer for the purpose of extracting personal gain 
or benefit to include actions taken for political purposes. As 
a result, the provision requires the IRS to terminate an 
employee who, for political purposes or personal gain, 
undertakes official action with respect to a taxpayer or, 
depending on the circumstances, fails to do so, delays action 
or threatens to perform, delay or omit such official action. 
Official actions for purposes of this provision include audits 
or examinations.

                             EFFECTIVE DATE

    The provision is effective on the date of enactment.

                      III. VOTES OF THE COMMITTEE

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, the following statement is made 
concerning the vote of the Committee on Ways and Means in its 
consideration of H.R. 709, the ``Prevent Targeting at the IRS 
Act,'' on March 25, 2015.
    The Chairman's amendment in the nature of a substitute was 
adopted by a voice vote (with a quorum being present).
    The bill, H.R. 709, as amended, was ordered favorably 
reported to the House of Representatives by a voice vote (with 
a quorum being present).

                     IV. BUDGET EFFECTS OF THE BILL

               A. Committee Estimate of Budgetary Effects

    In compliance with clause 3(d) of rule XIII of the Rules of 
the House of Representatives, the following statement is made 
concerning the effects on the budget of the bill, H.R. 709 as 
reported.
    The bill, as reported, is estimated to have no effect on 
Federal budget receipts for fiscal years 2015-2025.
    Pursuant to clause 8 of rule XIII of the Rules of the House 
of Representatives, the following statement is made by the 
Joint Committee on Taxation with respect to the provisions of 
the bill amending the Internal Revenue Code of 1986: the gross 
budgetary effect (before incorporating macroeconomic effects) 
in any fiscal year is less than 0.25 percent of the current 
projected gross domestic product of the United States for that 
fiscal year; therefore, the bill is not ``major legislation'' 
for purposes of requiring that the estimate include the 
budgetary effects of changes in economic output, employment, 
capital stock and other macroeconomic variables.

B. Statement Regarding New Budget Authority and Tax Expenditures Budget 
                               Authority

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee states that the 
bill involves no new or increased budget authority. The 
Committee further states that there are no new or increased tax 
expenditures.

      C. Cost Estimate Prepared by the Congressional Budget Office

    In compliance with clause 3(c)(3) of rule XIII of the Rules 
of the House of Representatives, requiring a cost estimate 
prepared by the CBO, the following statement by CBO is 
provided.

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, April 3, 2015.
Hon. Paul Ryan,
Chairman, Committee on Ways and Means,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 709, the Prevent 
Targeting at the IRS Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Matthew 
Pickford.
            Sincerely,
                                                Keith Hall,
                                                          Director.
    Enclosure.

H.R. 709--Prevent Targeting at the IRS Act

    H.R. 709 would amend federal law to expand the reasons that 
Internal Revenue Service (IRS) employees may be terminated to 
include taking official actions for political purposes. CBO 
estimates that enacting the bill would have no significant 
impact on the federal budget.
    Under current law, there are 10 violations that, if proven, 
can lead to the termination of an IRS employee. The decision to 
terminate an employee is subject to the discretion of the IRS 
commissioner who can determine if mitigating factors exist. 
H.R. 709 would expand the violations to include targeting 
taxpayers for political purposes. CBO estimates that 
implementing the legislation would have no significant impact 
on the federal budget because we expect the bill's provisions 
would apply to a small number of employees. CBO and the staff 
of the Joint Committee on Taxation (JCT) estimate that enacting 
the bill would not affect direct spending or revenues; 
therefore, pay-as-you-go procedures do not apply.
    CBO and JCT have determined that H.R. 709 contains no 
intergovernmental or private-sector mandates as defined in the 
Unfunded Mandates Reform Act and would not affect the budgets 
of state, local, or tribal governments.
    The CBO staff contact for this estimate is Matthew 
Pickford. The estimate was approved by Theresa Gullo, Assistant 
Director for Budget Analysis.

     V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE

          A. Committee Oversight Findings and Recommendations

    With respect to clause 3(c)(1) of rule XIII of the Rules of 
the House of Representatives (relating to oversight findings), 
the Committee advises that it was as a result of the 
Committee's review of the provisions of H.R. 709 that the 
Committee concluded that it is appropriate to report the bill, 
as amended, favorably to the House of Representatives with the 
recommendation that the bill do pass.

        B. Statement of General Performance Goals and Objectives

    With respect to clause 3(c)(4) of rule XIII of the Rules of 
the House of Representatives, the Committee advises that the 
bill contains no measure that authorizes funding, so no 
statement of general performance goals and objectives for which 
any measure authorizes funding is required.

              C. Information Relating to Unfunded Mandates

    This information is provided in accordance with section 423 
of the Unfunded Mandates Reform Act of 1995 (Pub. L. No. 104-
4). The Committee has determined that the bill does not contain 
Federal mandates on the private sector. The Committee has 
determined that the bill does not impose a Federal 
intergovernmental mandate on State, local, or tribal 
governments.

                D. Applicability of House Rule XXI 5(b)

    Rule XXI 5(b) of the Rules of the House of Representatives 
provides, in part, that ``A bill or joint resolution, 
amendment, or conference report carrying a Federal income tax 
rate increase may not be considered as passed or agreed to 
unless so determined by a vote of not less than three-fifths of 
the Members voting, a quorum being present.'' The Committee has 
carefully reviewed the bill, and states that the bill does not 
involve any Federal income tax rate increases within the 
meaning of the rule.

                       E. Tax Complexity Analysis

    The following statement is made pursuant to clause 3(h)(1) 
of rule XIII of the Rules of the House of Representatives. 
Section 4022(b) of the Internal Revenue Service Restructuring 
and Reform Act of 1998 requires the staff of the Joint 
Committee on Taxation (in consultation with the Internal 
Revenue Service and the Treasury Department) to provide a tax 
complexity analysis. The complexity analysis is required for 
all legislation reported by the Senate Committee on Finance, 
the House Committee on Ways and Means, or any committee of 
conference if the legislation includes a provision that 
directly or indirectly amends the Internal Revenue Code and has 
widespread applicability to individuals or small businesses.
    Pursuant to clause 3(h)(1) of rule XIII of the Rules of the 
House of Representatives, the staff of the Joint Committee on 
Taxation has determined that a complexity analysis is not 
required under section 4022(b) of the IRS Reform Act because 
the bill contains no provisions that amend the Internal Revenue 
Code and that have ``widespread applicability'' to individuals 
or small businesses, within the meaning of the rule.

  F. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
                                Benefits

    With respect to clause 9 of rule XXI of the Rules of the 
House of Representatives, the Committee has carefully reviewed 
the provisions of the bill, and states that the provisions of 
the bill do not contain any congressional earmarks, limited tax 
benefits, or limited tariff benefits within the meaning of the 
rule.

                   G. Duplication of Federal Programs

    In compliance with Sec. 3(g)(2) of H. Res. 5 (114th 
Congress), the Committee states that no provision of the bill 
establishes or reauthorizes: (1) a program of the Federal 
Government known to be duplicative of another Federal program, 
(2) a program included in any report from the Government 
Accountability Office to Congress pursuant to section 21 of 
Public Law 111-139, or (3) a program related to a program 
identified in the most recent Catalog of Federal Domestic 
Assistance, published pursuant to the Federal Program 
Information Act (Public Law 95-220, as amended by Public Law 
98-169).

                 H. Disclosure of Directed Rule Makings

    In compliance with Sec. 3(i) of H. Res. 5 (114th Congress), 
the following statement is made concerning directed rule 
makings: The Committee estimates that the bill requires no 
directed rule makings within the meaning of such section.

       VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

  A. Text of Existing Law Amended or Repealed by the Bill, as Reported

    In compliance with clause 3(e)(1)(A) of rule XIII of the 
Rules of the House of Representatives, the text of each section 
proposed to be amended or repealed by the bill, as reported, is 
shown below:

   Text of Existing Law Amended or Repealed by the Bill, as Reported

  In compliance with clause 3(e)(1)(A) of rule XIII of the 
Rules of the House of Representatives, the text of each section 
proposed to be amended or repealed by the bill, as reported, is 
shown below:

 SECTION 1203 OF THE INTERNAL REVENUE SERVICE RESTRUCTURING AND REFORM 
                              ACT OF 1998

SEC. 1203. TERMINATION OF EMPLOYMENT FOR MISCONDUCT.

  (a) In General.--Subject to subsection (c), the Commissioner 
of Internal Revenue shall terminate the employment of any 
employee of the Internal Revenue Service if there is a final 
administrative or judicial determination that such employee 
committed any act or omission described under subsection (b) in 
the performance of the employee's official duties. Such 
termination shall be a removal for cause on charges of 
misconduct.
  (b) Acts or Omissions.--The acts or omissions referred to 
under subsection (a) are--
          (1) willful failure to obtain the required approval 
        signatures on documents authorizing the seizure of a 
        taxpayer's home, personal belongings, or business 
        assets;
          (2) providing a false statement under oath with 
        respect to a material matter involving a taxpayer or 
        taxpayer representative;
          (3) with respect to a taxpayer, taxpayer 
        representative, or other employee of the Internal 
        Revenue Service, the violation of--
                  (A) any right under the Constitution of the 
                United States; or
                  (B) any civil right established under--
                          (i) title VI or VII of the Civil 
                        Rights Act of 1964;
                          (ii) title IX of the Education 
                        Amendments of 1972;
                          (iii) the Age Discrimination in 
                        Employment Act of 1967;
                          (iv) the Age Discrimination Act of 
                        1975;
                          (v) section 501 or 504 of the 
                        Rehabilitation Act of 1973; or
                          (vi) title I of the Americans with 
                        Disabilities Act of 1990;
          (4) falsifying or destroying documents to conceal 
        mistakes made by any employee with respect to a matter 
        involving a taxpayer or taxpayer representative;
          (5) assault or battery on a taxpayer, taxpayer 
        representative, or other employee of the Internal 
        Revenue Service, but only if there is a criminal 
        conviction, or a final judgment by a court in a civil 
        case, with respect to the assault or battery;
          (6) violations of the Internal Revenue Code of 1986, 
        Department of Treasury regulations, or policies of the 
        Internal Revenue Service (including the Internal 
        Revenue Manual) for the purpose of retaliating against, 
        or harassing, a taxpayer, taxpayer representative, or 
        other employee of the Internal Revenue Service;
          (7) willful misuse of the provisions of section 6103 
        of the Internal Revenue Code of 1986 for the purpose of 
        concealing information from a congressional inquiry;
          (8) willful failure to file any return of tax 
        required under the Internal Revenue Code of 1986 on or 
        before the date prescribed therefor (including any 
        extensions), unless such failure is due to reasonable 
        cause and not to willful neglect;
          (9) willful understatement of Federal tax liability, 
        unless such understatement is due to reasonable cause 
        and not to willful neglect; and
          (10) threatening to audit a taxpayer for the purpose 
        of extracting personal gain or benefit.
  (c) Determination of Commissioner.--
          (1) In General.--The Commissioner of Internal Revenue 
        may take a personnel action other than termination for 
        an act or omission under subsection (a).
          (2) Discretion.--The exercise of authority under 
        paragraph (1) shall be at the sole discretion of the 
        Commissioner of Internal Revenue and may not be 
        delegated to any other officer. The Commissioner of 
        Internal Revenue, in his sole discretion, may establish 
        a procedure which will be used to determine whether an 
        individual should be referred to the Commissioner of 
        Internal Revenue for a determination by the 
        Commissioner under paragraph (1).
          (3) No appeal.--Any determination of the Commissioner 
        of Internal Revenue under this subsection may not be 
        appealed in any administrative or judicial proceeding.
  (d) Definition.--For purposes of the provisions described in 
clauses (i), (ii), and (iv) of subsection (b)(3)(B), references 
to a program or activity receiving Federal financial assistance 
or an education program or activity receiving Federal financial 
assistance shall include any program or activity conducted by 
the Internal Revenue Service for a taxpayer.
  (e) Individuals Performing Services Under a Qualified Tax 
Collection Contract.--An individual shall cease to be permitted 
to perform any services under any qualified tax collection 
contract (as defined in section 6306(b) of the Internal Revenue 
Code of 1986) if there is a final determination by the 
Secretary of the Treasury under such contract that such 
individual committed any act or omission described under 
subsection (b) in connection with the performance of such 
services.

      B. Changes in Existing Law Proposed by the Bill, as Reported

    In compliance with clause 3(e)(1)(B) of rule XIII of the 
Rules of the House of Representatives, changes in existing law 
proposed by the bill, as reported, are shown as follows 
(existing law proposed to be omitted is enclosed in black 
brackets, new matter is printed in italic, existing law in 
which no change is proposed is shown in roman):

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e)(1)(B) of rule XIII of the 
Rules of the House of Representatives, changes in existing law 
proposed by the bill, as reported, are shown as follows 
(existing law proposed to be omitted is enclosed in black 
brackets, new matter is printed in italic, and existing law in 
which no change is proposed is shown in roman):

 SECTION 1203 OF THE INTERNAL REVENUE SERVICE RESTRUCTURING AND REFORM 
                              ACT OF 1998

SEC. 1203. TERMINATION OF EMPLOYMENT FOR MISCONDUCT.

  (a) In General.--Subject to subsection (c), the Commissioner 
of Internal Revenue shall terminate the employment of any 
employee of the Internal Revenue Service if there is a final 
administrative or judicial determination that such employee 
committed any act or omission described under subsection (b) in 
the performance of the employee's official duties. Such 
termination shall be a removal for cause on charges of 
misconduct.
  (b) Acts or Omissions.--The acts or omissions referred to 
under subsection (a) are--
          (1) willful failure to obtain the required approval 
        signatures on documents authorizing the seizure of a 
        taxpayer's home, personal belongings, or business 
        assets;
          (2) providing a false statement under oath with 
        respect to a material matter involving a taxpayer or 
        taxpayer representative;
          (3) with respect to a taxpayer, taxpayer 
        representative, or other employee of the Internal 
        Revenue Service, the violation of--
                  (A) any right under the Constitution of the 
                United States; or
                  (B) any civil right established under--
                          (i) title VI or VII of the Civil 
                        Rights Act of 1964;
                          (ii) title IX of the Education 
                        Amendments of 1972;
                          (iii) the Age Discrimination in 
                        Employment Act of 1967;
                          (iv) the Age Discrimination Act of 
                        1975;
                          (v) section 501 or 504 of the 
                        Rehabilitation Act of 1973; or
                          (vi) title I of the Americans with 
                        Disabilities Act of 1990;
          (4) falsifying or destroying documents to conceal 
        mistakes made by any employee with respect to a matter 
        involving a taxpayer or taxpayer representative;
          (5) assault or battery on a taxpayer, taxpayer 
        representative, or other employee of the Internal 
        Revenue Service, but only if there is a criminal 
        conviction, or a final judgment by a court in a civil 
        case, with respect to the assault or battery;
          (6) violations of the Internal Revenue Code of 1986, 
        Department of Treasury regulations, or policies of the 
        Internal Revenue Service (including the Internal 
        Revenue Manual) for the purpose of retaliating against, 
        or harassing, a taxpayer, taxpayer representative, or 
        other employee of the Internal Revenue Service;
          (7) willful misuse of the provisions of section 6103 
        of the Internal Revenue Code of 1986 for the purpose of 
        concealing information from a congressional inquiry;
          (8) willful failure to file any return of tax 
        required under the Internal Revenue Code of 1986 on or 
        before the date prescribed therefor (including any 
        extensions), unless such failure is due to reasonable 
        cause and not to willful neglect;
          (9) willful understatement of Federal tax liability, 
        unless such understatement is due to reasonable cause 
        and not to willful neglect; and
          [(10) threatening to audit a taxpayer for the purpose 
        of extracting personal gain or benefit.]
          (10) performing, delaying, or failing to perform (or 
        threatening to perform, delay, or fail to perform) any 
        official action (including any audit) with respect to a 
        taxpayer for purpose of extracting personal gain or 
        benefit or for a political purpose.
  (c) Determination of Commissioner.--
          (1) In General.--The Commissioner of Internal Revenue 
        may take a personnel action other than termination for 
        an act or omission under subsection (a).
          (2) Discretion.--The exercise of authority under 
        paragraph (1) shall be at the sole discretion of the 
        Commissioner of Internal Revenue and may not be 
        delegated to any other officer. The Commissioner of 
        Internal Revenue, in his sole discretion, may establish 
        a procedure which will be used to determine whether an 
        individual should be referred to the Commissioner of 
        Internal Revenue for a determination by the 
        Commissioner under paragraph (1).
          (3) No appeal.--Any determination of the Commissioner 
        of Internal Revenue under this subsection may not be 
        appealed in any administrative or judicial proceeding.
  (d) Definition.--For purposes of the provisions described in 
clauses (i), (ii), and (iv) of subsection (b)(3)(B), references 
to a program or activity receiving Federal financial assistance 
or an education program or activity receiving Federal financial 
assistance shall include any program or activity conducted by 
the Internal Revenue Service for a taxpayer.
  (e) Individuals Performing Services Under a Qualified Tax 
Collection Contract.--An individual shall cease to be permitted 
to perform any services under any qualified tax collection 
contract (as defined in section 6306(b) of the Internal Revenue 
Code of 1986) if there is a final determination by the 
Secretary of the Treasury under such contract that such 
individual committed any act or omission described under 
subsection (b) in connection with the performance of such 
services.

                               [all]
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