II 

115TH CONGRESS 

1ST SESSION S. 1793

To amend the Internal Revenue Code of 1986 to enhance taxpayer rights, 

and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 12, 2017

Mr. GRASSLEY (for himself and Mr. THUNE) introduced the following bill; 

which was read twice and referred to the Committee on Finance 

A BILL

To amend the Internal Revenue Code of 1986 to enhance 

taxpayer rights, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE, ETC. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Taxpayer Bill of Rights Enhancement Act of 2017’’. 

6 (b) AMENDMENT OF 1986 CODE.—Except as other7 wise expressly provided, whenever in this Act an amend8 ment or repeal is expressed in terms of an amendment 

9 to, or repeal of, a section or other provision, the reference 

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•S 1793 IS

1 shall be considered to be made to a section or other provi2 sion of the Internal Revenue Code of 1986. 

3 (c) TABLE OF CONTENTS.—The table of contents for 

4 this Act is as follows:

Sec. 1. Short title, etc. 

TITLE I—THE RIGHT TO PRIVACY 

Sec. 101. Civil damages for unauthorized disclosure or inspection. 

Sec. 102. Compliance by contractors with confidentiality safeguards. 

TITLE II—THE RIGHT TO APPEAL IN AN INDEPENDENT FORUM 

AND TO CHALLENGE THE INTERNAL REVENUE SERVICE POSITION AND BE HEARD 

Sec. 201. Increase in limitations on civil damages for certain unauthorized collection actions. 

Sec. 202. Extension of time limit for contesting IRS levy. 

TITLE III—THE RIGHT TO A FAIR AND JUST TAX SYSTEM 

Sec. 301. Waiver of user fee for installment agreements using automated withdrawals. 

Sec. 302. Individuals held harmless on improper levy on retirement plans. 

Sec. 303. Office of Chief Counsel review of offers-in-compromise. 

Sec. 304. Increase in and expansion of individual estimated tax exception. 

Sec. 305. Modifications to computation of individual estimated tax. 

Sec. 306. Corporate estimated tax. 

Sec. 307. Increase in large corporation threshold for estimated tax payments. 

Sec. 308. Expansion of interest netting. 

Sec. 309. Clarification of application of Federal tax deposit penalty. 

TITLE IV—THE RIGHT TO BE INFORMED 

Sec. 401. Collection activities with respect to joint return disclosable to either 

spouse based on oral request. 

Sec. 402. Mandatory electronic filing for annual returns of exempt organizations. 

TITLE V—THE RIGHT TO QUALITY SERVICE 

Sec. 501. Free electronic filing. 

Sec. 502. Access to appeals.

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1 TITLE I—THE RIGHT TO 

2 PRIVACY 

3 SEC. 101. CIVIL DAMAGES FOR UNAUTHORIZED DISCLO4 SURE OR INSPECTION. 

5 (a) NOTICE TO TAXPAYER.—Subsection (e) of section 

6 7431 is amended by adding at the end the following new 

7 sentences: ‘‘The Secretary shall also notify such taxpayer 

8 if the Internal Revenue Service or, upon notice to the Sec9 retary by a Federal or State agency, if such Federal or 

10 State agency, proposes an administrative determination as 

11 to disciplinary or adverse action against an employee aris12 ing from the employee’s unauthorized inspection or disclo13 sure of the taxpayer’s return or return information. The 

14 notice described in this subsection shall include the date 

15 of the inspection or disclosure and the rights of the tax16 payer under such administrative determination.’’. 

17 (b) PAYMENT AUTHORITY CLARIFIED.—

18 (1) IN GENERAL.—Section 7431 is amended by 

19 adding at the end the following new subsection: 

20 ‘‘(i) PAYMENT AUTHORITY.—Claims pursuant to 

21 subsection (a)(1) shall be payable out of funds appro22 priated under section 1304 of title 31, United States 

23 Code.’’. 

24 (2) ANNUAL REPORTS OF PAYMENTS.—The 

25 Secretary of the Treasury shall annually report to 

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•S 1793 IS

1 the Committee on Finance of the Senate and the 

2 Committee on Ways and Means of the House of 

3 Representatives regarding payments made from the 

4 United States Judgment Fund under section 7431(i) 

5 of the Internal Revenue Code of 1986. 

6 (c) BURDEN OF PROOF FOR GOOD FAITH EXCEP7 TION RESTS WITH PERSON MAKING INSPECTION OR DIS8 CLOSURE.—Section 7431(b) is amended by adding at the 

9 end the following new flush sentence: 

10 ‘‘In any proceeding involving the existence of a good faith 

11 but erroneous interpretation of section 6103, the burden 

12 of proof with respect to such issue shall be on the person 

13 who made the inspection or disclosure, or in the case of 

14 a suit pursuant to paragraph (a)(1), the United States.’’. 

15 (d) REPORTS.—Subsection (p) of section 6103 is 

16 amended by adding at the end the following new para17 graph: 

18 ‘‘(9) REPORT ON WILLFUL UNAUTHORIZED DIS19 CLOSURE AND INSPECTION.—As part of the report 

20 required by paragraph (3)(C) for each calendar year, 

21 the Secretary shall furnish information regarding 

22 the willful unauthorized disclosure and inspection of 

23 returns and return information, including the num24 ber, status, and results of—

25 ‘‘(A) administrative investigations, 

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•S 1793 IS

1 ‘‘(B) civil lawsuits brought under section 

2 7431 (including the amounts for which such 

3 lawsuits were settled and the amounts of dam4 ages awarded), and 

5 ‘‘(C) criminal prosecutions.’’. 

6 (e) INCREASE IN AMOUNT OF DAMAGES PER VIOLA7 TION.—

8 (1) IN GENERAL.—Subparagraph (A) of section 

9 7431(c)(1) is amended to read as follows: 

10 ‘‘(A) the sum of—

11 ‘‘(i) $5,000 for each act of unauthor12 ized inspection of a return or return infor13 mation with respect to which such defend14 ant is found liable, and 

15 ‘‘(ii) $10,000 for each act of unau16 thorized disclosure of a return or return 

17 information with respect to which such de18 fendant is found liable, or’’. 

19 (2) PUNITIVE DAMAGES.—

20 (A) IN GENERAL.—Section 7431(c) is 

21 amended by redesignating paragraphs (2) and 

22 (3) as paragraphs (3) and (4), respectively, and 

23 by inserting after paragraph (1) the following 

24 new paragraph: 

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1 ‘‘(2) in the case of willful inspection or disclo2 sure or an inspection or disclosure which is the re3 sult of gross negligence, punitive damages, plus’’. 

4 (B) CONFORMING AMENDMENT.—Subpara5 graph (B) of section 7431(c)(1) is amended to 

6 read as follows: 

7 ‘‘(B) the actual damages sustained by the 

8 plaintiff as a result of such unauthorized in9 spection or disclosure, plus’’. 

10 (f) EFFECTIVE DATES.—

11 (1) NOTICE.—The amendment made by sub12 section (a) shall apply to determinations made after 

13 the date which is 180 days after the date of the en14 actment of this Act. 

15 (2) PAYMENT AUTHORITY.—The amendment 

16 made by subsection (b)(1) shall take effect on the 

17 date which is 180 days after the date of the enact18 ment of this Act. 

19 (3) BURDEN OF PROOF.—The amendments 

20 made by subsection (c) shall apply to inspections 

21 and disclosures occurring on and after the date 

22 which is 180 days after the date of the enactment 

23 of this Act. 

24 (4) REPORTS.—Subsection (b)(2) and the 

25 amendment made by subsection (d) shall apply to 

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1 calendar years ending after the date which is 180 

2 days after the date of the enactment of this Act. 

3 (5) INCREASE IN DAMAGES.—The amendment 

4 made by subsection (e) shall apply to proceedings 

5 commenced after the date of the enactment of this 

6 Act. 

7 SEC. 102. COMPLIANCE BY CONTRACTORS WITH CONFIDEN8 TIALITY SAFEGUARDS. 

9 (a) IN GENERAL.—Section 6103(p), as amended by 

10 this Act, is amended by adding at the end the following 

11 new paragraph: 

12 ‘‘(10) DISCLOSURE TO CONTRACTORS AND

13 OTHER AGENTS.—Notwithstanding any other provi14 sion of this section, no return or return information 

15 shall be disclosed to any contractor or other agent 

16 of a Federal, State, or local agency unless such 

17 agency, to the satisfaction of the Secretary—

18 ‘‘(A) has requirements in effect which re19 quire each such contractor or other agent which 

20 would have access to returns or return informa21 tion to provide safeguards (within the meaning 

22 of paragraph (4)) to protect the confidentiality 

23 of such returns or return information, 

24 ‘‘(B) agrees to conduct an on-site review 

25 every 3 years (or a mid-point review in the case 

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1 of contracts or agreements of less than 3 years 

2 in duration) of each contractor or other agent 

3 to determine compliance with such require4 ments, 

5 ‘‘(C) submits the findings of the most re6 cent review conducted under subparagraph (B) 

7 to the Secretary as part of the report required 

8 by paragraph (4)(E), and 

9 ‘‘(D) certifies to the Secretary for the most 

10 recent annual period that such contractor or 

11 other agent is in compliance with all such re12 quirements. 

13 The certification required by subparagraph (D) shall 

14 include the name and address of each contractor and 

15 other agent, a description of the contract or agree16 ment with such contractor or other agent, and the 

17 duration of such contract or agreement. The require18 ments of this paragraph shall not apply to disclo19 sures pursuant to subsection (n) for purposes of 

20 Federal tax administration.’’. 

21 (b) CONFORMING AMENDMENT.—Subparagraph (B) 

22 of section 6103(p)(8) is amended by inserting ‘‘or para23 graph (10)’’ after ‘‘subparagraph (A)’’. 

24 (c) EFFECTIVE DATE.—

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1 (1) IN GENERAL.—The amendments made by 

2 this section shall apply to disclosures made after the 

3 date of the enactment of this Act. 

4 (2) CERTIFICATIONS.—The first certification 

5 under section 6103(p)(10)(D) of the Internal Rev6 enue Code of 1986, as added by subsection (a), shall 

7 be made with respect to the portion of calendar year 

8 2017 following the date of the enactment of this 

9 Act. 

10 TITLE II—THE RIGHT TO AP11 PEAL IN AN INDEPENDENT 

12 FORUM AND TO CHALLENGE 

13 THE INTERNAL REVENUE 

14 SERVICE POSITION AND BE 

15 HEARD 

16 SEC. 201. INCREASE IN LIMITATIONS ON CIVIL DAMAGES 

17 FOR CERTAIN UNAUTHORIZED COLLECTION 

18 ACTIONS. 

19 (a) IN GENERAL.—Section 7433(b) is amended by 

20 striking ‘‘$1,000,000 ($100,000’’ and inserting 

21 ‘‘$1,500,000 ($150,000’’. 

22 (b) PUNITIVE DAMAGES IN THE CASE OF RECKLESS

23 OR INTENTIONAL ACTION.—Subsection (b) of section 

24 7433 is amended—

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1 (1) by redesignating paragraphs (1) and (2) as 

2 subparagraphs (A) and (B), respectively, and by 

3 moving such subparagraphs 2 ems to the right, 

4 (2) by striking ‘‘In any action’’ and inserting 

5 the following: 

6 ‘‘(1) IN GENERAL.—In any action’’, and 

7 (3) by adding at the end the following new 

8 paragraph: 

9 ‘‘(2) PUNITIVE DAMAGES FOR WILLFUL AND

10 RECKLESS ACTIONS.—In any action brought under 

11 subsection (a) or petition filed under subsection (e) 

12 in which the defendant is found to be liable and to 

13 have acted recklessly or intentionally, the court may 

14 award the plaintiff punitive damages.’’. 

15 (c) PERIOD FOR BRINGING ACTION.—Paragraph (3) 

16 of section 7433(d) is amended by striking ‘‘the date the 

17 right of action accrues’’ and inserting ‘‘the later of the 

18 date of on which administrative remedies available within 

19 the Internal Revenue Service have been exhausted or the 

20 date on which the taxpayer reasonably could have discov21 ered that the actions of the officer or employee were done 

22 in disregard of a provision of this title or any regulation 

23 promulgated under this title’’. 

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1 (d) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply in the case of proceedings com3 menced after the date of the enactment of this Act. 

4 SEC. 202. EXTENSION OF TIME LIMIT FOR CONTESTING IRS 

5 LEVY. 

6 (a) EXTENSION OF TIME FOR RETURN OF PROPERTY

7 SUBJECT TO LEVY.—Subsection (b) of section 6343 is 

8 amended by striking ‘‘9 months’’ and inserting ‘‘2 years’’. 

9 (b) PERIOD OF LIMITATION ON SUITS.—Subsection 

10 (c) of section 6532 is amended—

11 (1) by striking ‘‘9 months’’ in paragraph (1) 

12 and inserting ‘‘2 years’’, and 

13 (2) by striking ‘‘9-month’’ in paragraph (2) and 

14 inserting ‘‘2-year’’. 

15 (c) EFFECTIVE DATE.—The amendments made by 

16 this section shall apply to—

17 (1) levies made after the date of the enactment 

18 of this Act, and 

19 (2) levies made on or before such date if the 9-

20 month period has not expired under section 6343(b) 

21 of the Internal Revenue Code of 1986 (without re22 gard to this section) as of such date. 

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1 TITLE III—THE RIGHT TO A FAIR 

2 AND JUST TAX SYSTEM 

3 SEC. 301. WAIVER OF USER FEE FOR INSTALLMENT AGREE4 MENTS USING AUTOMATED WITHDRAWALS. 

5 (a) IN GENERAL.—Section 6159 is amended by re6 designating subsections (e) and (f) as subsections (f) and 

7 (g), respectively, and by inserting after subsection (d) the 

8 following new subsection: 

9 ‘‘(e) WAIVER OF USER FEES FOR INSTALLMENT

10 AGREEMENTS USING AUTOMATED WITHDRAWALS.—In 

11 the case of a taxpayer who enters into an installment 

12 agreement in which automated installment payments are 

13 agreed to, the Secretary shall waive the fee (if any) for 

14 entering into the installment agreement.’’. 

15 (b) EFFECTIVE DATE.—The amendments made by 

16 this section shall apply to agreements entered into on or 

17 after the date which is 180 days after the date of the en18 actment of this Act. 

19 SEC. 302. INDIVIDUALS HELD HARMLESS ON IMPROPER 

20 LEVY ON RETIREMENT PLANS. 

21 (a) IN GENERAL.—Section 6343 is amended by add22 ing at the end the following new subsection: 

23 ‘‘(f) INDIVIDUALS HELD HARMLESS ON WRONGFUL

24 LEVY, ETC. ON RETIREMENT PLAN.—

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1 ‘‘(1) IN GENERAL.—If the Secretary determines 

2 that an individual’s account or benefit under an eli3 gible retirement plan (as defined in section 

4 402(c)(8)(B)) has been levied upon in a case to 

5 which subsection (b) or (d)(2)(A) applies and prop6 erty or an amount of money is returned to the indi7 vidual—

8 ‘‘(A) the individual may contribute such 

9 property or an amount equal to the sum of—

10 ‘‘(i) the amount of money so returned 

11 by the Secretary, and 

12 ‘‘(ii) interest paid under subsection (c) 

13 on such amount of money, 

14 into such eligible retirement plan if such con15 tribution is permitted by the plan, or into an in16 dividual retirement plan (other than an endow17 ment contract) to which a rollover contribution 

18 of a distribution from such eligible retirement 

19 plan is permitted, but only if such contribution 

20 is made not later than the due date (not includ21 ing extensions) for filing the return of tax for 

22 the taxable year in which such property or 

23 amount of money is returned, and 

24 ‘‘(B) the Secretary shall, at the time such 

25 property or amount of money is returned, notify 

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1 such individual that a contribution described in 

2 subparagraph (A) may be made. 

3 ‘‘(2) TREATMENT AS ROLLOVER.—The distribu4 tion on account of the levy and any contribution 

5 under paragraph (1) with respect to the return of 

6 such distribution shall be treated for purposes of 

7 this title as if such distribution and contribution 

8 were described in section 402(c), 402A(c)(3), 

9 403(a)(4), 403(b)(8), 408(d)(3), 408A(d)(3), or 

10 457(e)(16), whichever is applicable; except that—

11 ‘‘(A) the contribution shall be treated as 

12 having been made for the taxable year in which 

13 the distribution on account of the levy occurred, 

14 and the interest paid under subsection (c) shall 

15 be treated as earnings within the plan after the 

16 contribution and shall not be included in gross 

17 income, and 

18 ‘‘(B) such contribution shall not be taken 

19 into account under section 408(d)(3)(B). 

20 ‘‘(3) REFUND, ETC., OF INCOME TAX ON

21 LEVY.—

22 ‘‘(A) IN GENERAL.—If any amount is in23 cludible in gross income for a taxable year by 

24 reason of a distribution on account of a levy re25 ferred to in paragraph (1) and any portion of 

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1 such amount is treated as a rollover contribu2 tion under paragraph (2), any tax imposed by 

3 chapter 1 on such portion shall not be assessed, 

4 and if assessed shall be abated, and if collected 

5 shall be credited or refunded as an overpayment 

6 made on the due date for filing the return of 

7 tax for such taxable year. 

8 ‘‘(B) EXCEPTION.—Subparagraph (A) 

9 shall not apply to a rollover contribution under 

10 this subsection which is made from an eligible 

11 retirement plan which is not a Roth IRA or a 

12 designated Roth account (within the meaning of 

13 section 402A) to a Roth IRA or a designated 

14 Roth account under an eligible retirement plan. 

15 ‘‘(4) INTEREST.—Notwithstanding subsection 

16 (d), interest shall be allowed under subsection (c) in 

17 a case in which the Secretary makes a determination 

18 described in subsection (d)(2)(A) with respect to a 

19 levy upon an individual retirement plan. 

20 ‘‘(5) TREATMENT OF INHERITED ACCOUNTS.—

21 For purposes of paragraph (1)(A), section 

22 408(d)(3)(C) shall be disregarded in determining 

23 whether an individual retirement plan is a plan to 

24 which a rollover contribution of a distribution from 

25 the plan levied upon is permitted.’’. 

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1 (b) EFFECTIVE DATE.—The amendment made by 

2 this section shall apply to amounts paid under subsections 

3 (b), (c), and (d)(2)(A) of section 6343 of the Internal Rev4 enue Code of 1986 after December 31, 2017. 

5 SEC. 303. OFFICE OF CHIEF COUNSEL REVIEW OF OFFERS6 IN-COMPROMISE. 

7 (a) IN GENERAL.—Section 7122(b) is amended by 

8 striking ‘‘Whenever a compromise’’ and all that follows 

9 through ‘‘his delegate’’ and inserting ‘‘If the Secretary de10 termines that an opinion of the General Counsel for the 

11 Department of the Treasury, or the Counsel’s delegate, 

12 is required with respect to a compromise, there shall be 

13 placed on file in the office of the Secretary such opinion’’. 

14 (b) CONFORMING AMENDMENTS.—Section 7122(b) is 

15 amended by striking the second and third sentences. 

16 (c) EFFECTIVE DATE.—The amendments made by 

17 this section shall apply to offers-in-compromise submitted 

18 or pending on or after the date of the enactment of this 

19 Act. 

20 SEC. 304. INCREASE IN AND EXPANSION OF INDIVIDUAL ES21 TIMATED TAX EXCEPTION. 

22 (a) IN GENERAL.—Paragraph (1) of section 6654(e) 

23 is amended to read as follows: 

24 ‘‘(1) WHERE TAX IS SMALL AMOUNT.—

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1 ‘‘(A) IN GENERAL.—No addition to tax 

2 shall be imposed under subsection (a) for any 

3 taxable year if—

4 ‘‘(i) the excess (if any) of the tax 

5 shown on the return for such taxable year 

6 (or, if no return is filed, the tax) over the 

7 sum of—

8 ‘‘(I) the estimated tax paid for 

9 such taxable year, plus 

10 ‘‘(II) credit allowable under sec11 tion 31, is less than 

12 ‘‘(ii) $2,000. 

13 ‘‘(B) EXCEPTION.—

14 ‘‘(i) IN GENERAL.—No amount of es15 timated tax paid for a taxable year shall be 

16 taken into account under subparagraph 

17 (A)(i)(I) after the first due date (as deter18 mined under subsection (c)(2)) for which 

19 the individual’s required installment was 

20 greater than zero and more than 10 per21 cent of the required installment was not 

22 paid by such date. 

23 ‘‘(ii) ORDER OF CREDITING PAY24 MENTS.—In determining whether a pay25 ment was made for purposes of clause (i), 

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1 a payment of estimated tax shall be cred2 ited against unpaid required installments 

3 in the order in which such installments are 

4 required to be paid.’’. 

5 (b) EFFECTIVE DATE.—The amendments made by 

6 this section shall apply to taxable years beginning after 

7 December 31, 2017. 

8 SEC. 305. MODIFICATIONS TO COMPUTATION OF INDI9 VIDUAL ESTIMATED TAX. 

10 (a) IN GENERAL.—Section 6654 is amended by strik11 ing subsections (a) and (b) and inserting the following: 

12 ‘‘(a) ADDITION TO THE TAX.—

13 ‘‘(1) IN GENERAL.—Except as otherwise pro14 vided in this section, in the case of any under15 payment of estimated tax by an individual for a tax16 able year, there shall be added to the tax under 

17 chapter 1, the tax under chapter 2, and the tax 

18 under chapter 2A for such taxable year the sum of 

19 the amounts determined under paragraph (2) for 

20 each day for which there is an underpayment. 

21 ‘‘(2) AMOUNT OF ADDITION TO TAX.—The 

22 amount determined under this paragraph for any 

23 day shall be the product of—

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1 ‘‘(A) the underpayment rate established 

2 under subsection (b)(2) for such day, multiplied 

3 by 

4 ‘‘(B) the amount of the underpayment for 

5 such day. 

6 ‘‘(b) AMOUNT OF UNDERPAYMENT; UNDERPAYMENT

7 RATE.—For purposes of subsection (a)—

8 ‘‘(1) AMOUNT.—The amount of underpayment 

9 on any day shall be the excess (if any) of—

10 ‘‘(A) the sum of the required installments 

11 for the taxable year the due dates for which are 

12 on or before such day, over 

13 ‘‘(B) the sum of the amounts of estimated 

14 tax payments made for such taxable year on or 

15 before such day. 

16 ‘‘(2) DETERMINATION OF UNDERPAYMENT

17 RATE.—

18 ‘‘(A) IN GENERAL.—The underpayment 

19 rate with respect to any day in an installment 

20 underpayment period shall be the under21 payment rate established under section 6621 

22 for the first day of the calendar quarter in 

23 which such installment underpayment period 

24 begins. 

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1 ‘‘(B) INSTALLMENT UNDERPAYMENT PE2 RIOD.—For purposes of subparagraph (A), the 

3 term ‘installment underpayment period’ means 

4 the period beginning on the day after the due 

5 date for a required installment and ending on 

6 the due date for the subsequent required in7 stallment (or in the case of the 4th required in8 stallment, the 15th day of the 4th month fol9 lowing the close of a taxable year). 

10 ‘‘(C) DAILY RATE.—The rate determined 

11 under subparagraph (A) shall be applied on a 

12 daily basis and shall be based on the assump13 tion of 365 days in a calendar year. 

14 ‘‘(3) TERMINATION OF ESTIMATED TAX UNDER15 PAYMENT.—No day after the end of the installment 

16 underpayment period for the 4th required install17 ment specified in paragraph (2)(B) for a taxable 

18 year shall be treated as a day of underpayment with 

19 respect to such taxable year.’’. 

20 (b) EFFECTIVE DATE.—The amendments made by 

21 this section shall apply to taxable years beginning after 

22 December 31, 2017. 

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1 SEC. 306. CORPORATE ESTIMATED TAX. 

2 (a) INCREASE IN SMALL TAX AMOUNT EXCEP3 TION.—Section 6655(f) is amended by striking ‘‘$500’’ 

4 and inserting ‘‘$2,000’’. 

5 (b) EFFECTIVE DATE.—The amendment made by 

6 this section shall apply to taxable years beginning after 

7 December 31, 2017. 

8 SEC. 307. INCREASE IN LARGE CORPORATION THRESHOLD 

9 FOR ESTIMATED TAX PAYMENTS. 

10 (a) IN GENERAL.—Section 6655(g)(2) is amended—

11 (1) by striking ‘‘$1,000,000’’ in subparagraph 

12 (A) and inserting ‘‘$1,500,000’’, 

13 (2) by striking ‘‘the $1,000,000 amount speci14 fied in subparagraph (A)’’ in subparagraph (B)(ii) 

15 and inserting ‘‘the amount in effect for the taxable 

16 year under subparagraph (A)’’, and 

17 (3) by inserting after subparagraph (B) the fol18 lowing new subparagraph: 

19 ‘‘(C) INFLATION ADJUSTMENT.—

20 ‘‘(i) IN GENERAL.—In the case of any 

21 taxable year beginning in a calendar year 

22 after 2018, the $1,500,000 amount in sub23 paragraph (A) shall be increased by an 

24 amount equal to—

25 ‘‘(I) such dollar amount, multi26 plied by 

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1 ‘‘(II) the cost-of-living adjust2 ment determined under section 1(f)(3) 

3 for the calendar year in which the tax4 able year begins, determined by sub5 stituting ‘calendar year 2017’ for ‘cal6 endar year 1992’ in subparagraph (B) 

7 thereof. 

8 ‘‘(ii) ROUNDING.—If any dollar 

9 amount, after being increased under para10 graph (1), is not a multiple of $1,000, 

11 such dollar amount shall be rounded to the 

12 next lowest multiple of $1,000.’’. 

13 (b) EFFECTIVE DATE.—The amendments made by 

14 this section shall apply to taxable years beginning after 

15 December 31, 2017. 

16 SEC. 308. EXPANSION OF INTEREST NETTING. 

17 (a) IN GENERAL.—Subsection (d) of section 6621 is 

18 amended by adding at the end the following new sentence: 

19 ‘‘Solely for purposes of the preceding sentence, section 

20 6611(e) shall not apply.’’. 

21 (b) EFFECTIVE DATE.—The amendment made by 

22 this section shall apply to interest accrued after December 

23 31, 2017. 

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1 SEC. 309. CLARIFICATION OF APPLICATION OF FEDERAL 

2 TAX DEPOSIT PENALTY. 

3 Nothing in section 6656 of the Internal Revenue 

4 Code of 1986 shall be construed to permit the percentage 

5 specified in subsection (b)(1)(A)(iii) thereof to apply other 

6 than in a case where the failure is for more than 15 days. 

7 TITLE IV—THE RIGHT TO BE 

8 INFORMED 

9 SEC. 401. COLLECTION ACTIVITIES WITH RESPECT TO 

10 JOINT RETURN DISCLOSABLE TO EITHER 

11 SPOUSE BASED ON ORAL REQUEST. 

12 (a) IN GENERAL.—Paragraph (8) of section 6103(e) 

13 is amended by striking ‘‘in writing’’ the first place it ap14 pears. 

15 (b) EFFECTIVE DATE.—The amendment made by 

16 this section shall apply to requests made after the date 

17 of the enactment of this Act. 

18 SEC. 402. MANDATORY ELECTRONIC FILING FOR ANNUAL 

19 RETURNS OF EXEMPT ORGANIZATIONS. 

20 (a) IN GENERAL.—Section 6033 is amended by re21 designating subsection (n) as subsection (o) and by insert22 ing after subsection (m) the following new subsection: 

23 ‘‘(n) MANDATORY ELECTRONIC FILING.—Any orga24 nization required to file a return under this section shall 

25 file such return in electronic form.’’. 

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1 (b) INSPECTION OF ELECTRONICALLY FILED AN2 NUAL RETURNS.—Subsection (b) of section 6104 is 

3 amended by adding at the end the following: ‘‘Any annual 

4 return required to be filed electronically under section 

5 6033(n) shall be made available by the Secretary to the 

6 public in machine readable format.’’. 

7 (c) EFFECTIVE DATE.—

8 (1) IN GENERAL.—Except as provided in para9 graph (2), the amendments made by this section 

10 shall apply to taxable years beginning after the date 

11 of the enactment of this Act. 

12 (2) TRANSITIONAL RELIEF.—

13 (A) SMALL ORGANIZATIONS.—

14 (i) IN GENERAL.—In the case of any 

15 small organizations, or any other organiza16 tions for which the Secretary determines 

17 the application of the amendments made 

18 by subsection (a) would cause undue bur19 den without a delay, the Secretary may 

20 delay the application of such amendments, 

21 but not later than taxable years beginning 

22 2 years after the date of the enactment of 

23 this Act. 

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1 (ii) SMALL ORGANIZATION.—For pur2 poses of clause (i), the term ‘‘small organi3 zation’’ means any organization—

4 (I) the gross receipts of which for 

5 the taxable year are less than 

6 $200,000, and 

7 (II) the aggregate gross assets of 

8 which at the end of the taxable year 

9 are less than $500,000. 

10 (B) ORGANIZATIONS FILING FORM 990–

11 T.—In the case of any organization described 

12 in section 511(a)(2) of the Internal Revenue 

13 Code of 1986 which is subject to the tax im14 posed by section 511(a)(1) of such Code on its 

15 unrelated business taxable income, or any orga16 nization required to file a return under section 

17 6033 of such Code and include information 

18 under subsection (e) thereof, the Secretary may 

19 delay the application of the amendments made 

20 by this section, but not later than taxable years 

21 beginning 2 years after the date of the enact22 ment of this Act. 

26

•S 1793 IS

1 TITLE V—THE RIGHT TO 

2 QUALITY SERVICE 

3 SEC. 501. FREE ELECTRONIC FILING. 

4 (a) IN GENERAL.—The Secretary of the Treasury (or 

5 the Secretary’s delegate) shall, in cooperation with the pri6 vate sector technology industry, maintain a program that 

7 provides free individual income tax preparation and elec8 tronic filing services to low-income taxpayers and elderly 

9 taxpayers. 

10 (b) REQUIREMENTS OF PROGRAM.—The Secretary 

11 shall by regulation or other guidance prescribe with re12 spect to the program—

13 (1) the qualifications, selection process, and 

14 contract term for businesses participating in the pro15 gram, 

16 (2) a process for periodic review of businesses 

17 participating in the program, 

18 (3) procedures for terminating business partici19 pation in the program for failure to comply with any 

20 program requirements, and 

21 (4) such other procedures as the Secretary de22 termines are necessary or appropriate to carry out 

23 the purposes of the program. 

24 (c) FREE FILE PROGRAM.—The Internal Revenue 

25 Service Free File program, as set forth in the notice pubVerDate 0ct 09 2002 22:14 Sep 13, 2017 Jkt 069200 PO 00000 Frm 00026 Fmt 6652 Sfmt 6201 E:\BILLS\S1793.IS S1793
27

•S 1793 IS

1 lished in the Federal Register on November 4, 2002 (67 

2 Fed. Reg. 67247), shall be treated as meeting the require3 ments of subsection (a). 

4 SEC. 502. ACCESS TO APPEALS. 

5 Subsection (b) of section 3465 of the Internal Rev6 enue Service Restructuring and Reform Act of 1998 is 

7 amended by striking ‘‘an appeals officer is regularly avail8 able within each State’’ and inserting ‘‘there is at least 

9 one appeals officer and one settlement officer located and 

10 permanently available in each State, the District of Co11 lumbia, and Puerto Rico’’.

Æ