II 

116TH CONGRESS 

1ST SESSION H. R. 3151 

IN THE SENATE OF THE UNITED STATES 

JUNE 11, 2019 

Received 

AN ACT 

To amend the Internal Revenue Code of 1986 to modernize 

and improve the Internal Revenue Service, 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, 


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1 SECTION 1. SHORT TITLE; ETC. 

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

3 ‘‘Taxpayer First Act’’. 

4 (b) AMENDMENT OF 1986 CODE.—Except as other5 wise expressly provided, whenever in this Act an amend6 ment or repeal is expressed in terms of an amendment 

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

8 shall be considered to be made to a section or other provi9 sion of the Internal Revenue Code of 1986. 

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

11 this Act is as follows: 

Sec. 1. Short title; etc. 

TITLE I—PUTTING TAXPAYERS FIRST 

Subtitle A—Independent Appeals Process 

Sec. 1001. Establishment of Internal Revenue Service Independent Office of 

Appeals. 

Subtitle B—Improved Service 

Sec. 1101. Comprehensive customer service strategy. 

Sec. 1102. Low-income exception for payments otherwise required in connection 

with a submission of an offer-in-compromise. 

Subtitle C—Sensible Enforcement 

Sec. 1201. Internal Revenue Service seizure requirements with respect to structuring transactions. 

Sec. 1202. Exclusion of interest received in action to recover property seized by 

the Internal Revenue Service based on structuring transaction. 

Sec. 1203. Clarification of equitable relief from joint liability. 

Sec. 1204. Modification of procedures for issuance of third-party summons. 

Sec. 1205. Private debt collection and special compliance personnel program. 

Sec. 1206. Reform of notice of contact of third parties. 

Sec. 1207. Modification of authority to issue designated summons. 

Sec. 1208. Limitation on access of non-Internal Revenue Service employees to 

returns and return information. 

Subtitle D—Organizational Modernization 

Sec. 1301. Office of the National Taxpayer Advocate. 

Sec. 1302. Modernization of Internal Revenue Service organizational structure. 


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Subtitle E—Other Provisions 

Sec. 1401. Return preparation programs for applicable taxpayers. 

Sec. 1402. Provision of information regarding low-income taxpayer clinics. 

Sec. 1403. Notice from IRS regarding closure of taxpayer assistance centers. 

Sec. 1404. Rules for seizure and sale of perishable goods restricted to only perishable goods. 

Sec. 1405. Whistleblower reforms. 

Sec. 1406. Customer service information. 

Sec. 1407. Misdirected tax refund deposits. 

TITLE II—21ST CENTURY IRS 

Subtitle A—Cybersecurity and Identity Protection 

Sec. 2001. Public-private partnership to address identity theft refund fraud. 

Sec. 2002. Recommendations of Electronic Tax Administration Advisory Committee regarding identity theft refund fraud. 

Sec. 2003. Information sharing and analysis center. 

Sec. 2004. Compliance by contractors with confidentiality safeguards. 

Sec. 2005. Identity protection personal identification numbers. 

Sec. 2006. Single point of contact for tax-related identity theft victims. 

Sec. 2007. Notification of suspected identity theft. 

Sec. 2008. Guidelines for stolen identity refund fraud cases. 

Sec. 2009. Increased penalty for improper disclosure or use of information by 

preparers of returns. 

Subtitle B—Development of Information Technology 

Sec. 2101. Management of Internal Revenue Service information technology. 

Sec. 2102. Internet platform for Form 1099 filings. 

Sec. 2103. Streamlined critical pay authority for information technology positions. 

Subtitle C—Modernization of Consent-Based Income Verification System 

Sec. 2201. Disclosure of taxpayer information for third-party income 

verification. 

Sec. 2202. Limit redisclosures and uses of consent-based disclosures of tax return information. 

Subtitle D—Expanded Use of Electronic Systems 

Sec. 2301. Electronic filing of returns. 

Sec. 2302. Uniform standards for the use of electronic signatures for disclosure 

authorizations to, and other authorizations of, practitioners. 

Sec. 2303. Payment of taxes by debit and credit cards. 

Sec. 2304. Authentication of users of electronic services accounts. 

Subtitle E—Other Provisions 

Sec. 2401. Repeal of provision regarding certain tax compliance procedures and 

reports. 

Sec. 2402. Comprehensive training strategy. 

TITLE III—MISCELLANEOUS PROVISIONS 

Subtitle A—Reform of Laws Governing Internal Revenue Service Employees 


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Sec. 3001. Prohibition on rehiring any employee of the Internal Revenue Service who was involuntarily separated from service for misconduct. 

Sec. 3002. Notification of unauthorized inspection or disclosure of returns and 

return information. 

Subtitle B—Provisions Relating to Exempt Organizations 

Sec. 3101. Mandatory e-filing by exempt organizations. 

Sec. 3102. Notice required before revocation of tax-exempt status for failure to 

file return. 

Subtitle C—Revenue Provision 

Sec. 3201. Increase in penalty for failure to file. 

TITLE IV—BUDGETARY EFFECTS 

Sec. 4001. Determination of budgetary effects. 

1 TITLE I—PUTTING TAXPAYERS 

2 FIRST 

3 Subtitle A—Independent Appeals 

4 Process 

5 SEC. 1001. ESTABLISHMENT OF INTERNAL REVENUE SERV6 ICE INDEPENDENT OFFICE OF APPEALS. 

7 (a) IN GENERAL.—Section 7803 is amended by add8 ing at the end the following new subsection: 

9 ‘‘(e) INDEPENDENT OFFICE OF APPEALS.— 

10 ‘‘(1) ESTABLISHMENT.—There is established in 

11 the Internal Revenue Service an office to be known 

12 as the ‘Internal Revenue Service Independent Office 

13 of Appeals’. 

14 ‘‘(2) CHIEF OF APPEALS.— 

15 ‘‘(A) IN GENERAL.—The Internal Revenue 

16 Service Independent Office of Appeals shall be 

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1 cial to be known as the ‘Chief of Appeals’. The 

2 Chief of Appeals shall report directly to the 

3 Commissioner of Internal Revenue and shall be 

4 entitled to compensation at the same rate as 

5 the highest rate of basic pay established for the 

6 Senior Executive Service under section 5382 of 

7 title 5, United States Code. 

8 ‘‘(B) APPOINTMENT.—The Chief of Ap9 peals shall be appointed by the Commissioner of 

10 Internal Revenue without regard to the provi11 sions of title 5, United States Code, relating to 

12 appointments in the competitive service or the 

13 Senior Executive Service. 

14 ‘‘(C) QUALIFICATIONS.—An individual ap15 pointed under subparagraph (B) shall have ex16 perience and expertise in— 

17 ‘‘(i) administration of, and compliance 

18 with, Federal tax laws, 

19 ‘‘(ii) a broad range of compliance 

20 cases, and 

21 ‘‘(iii) management of large service or22 ganizations. 

23 ‘‘(3) PURPOSES AND DUTIES OF OFFICE.—It 

24 shall be the function of the Internal Revenue Service 


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1 Independent Office of Appeals to resolve Federal tax 

2 controversies without litigation on a basis which— 

3 ‘‘(A) is fair and impartial to both the Gov4 ernment and the taxpayer, 

5 ‘‘(B) promotes a consistent application and 

6 interpretation of, and voluntary compliance 

7 with, the Federal tax laws, and 

8 ‘‘(C) enhances public confidence in the in9 tegrity and efficiency of the Internal Revenue 

10 Service. 

11 ‘‘(4) RIGHT OF APPEAL.—The resolution proc12 ess described in paragraph (3) shall be generally 

13 available to all taxpayers. 

14 ‘‘(5) LIMITATION ON DESIGNATION OF CASES

15 AS NOT ELIGIBLE FOR REFERRAL TO INDEPENDENT

16 OFFICE OF APPEALS.— 

17 ‘‘(A) IN GENERAL.—If any taxpayer which 

18 is in receipt of a notice of deficiency authorized 

19 under section 6212 requests referral to the In20 ternal Revenue Service Independent Office of 

21 Appeals and such request is denied, the Com22 missioner of Internal Revenue shall provide 

23 such taxpayer a written notice which— 

24 ‘‘(i) provides a detailed description of 

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1 sion to deny the request, and a detailed ex2 planation of how the basis of such decision 

3 applies to such facts, and 

4 ‘‘(ii) describes the procedures pre5 scribed under subparagraph (C) for pro6 testing the decision to deny the request. 

7 ‘‘(B) REPORT TO CONGRESS.—The Com8 missioner of Internal Revenue shall submit a 

9 written report to Congress on an annual basis 

10 which includes the number of requests described 

11 in subparagraph (A) which were denied and the 

12 reasons (described by category) that such re13 quests were denied. 

14 ‘‘(C) PROCEDURES FOR PROTESTING DE15 NIAL OF REQUEST.—The Commissioner of In16 ternal Revenue shall prescribe procedures for 

17 protesting to the Commissioner of Internal Rev18 enue a denial of a request described in subpara19 graph (A). 

20 ‘‘(D) NOT APPLICABLE TO FRIVOLOUS PO21 SITIONS.—This paragraph shall not apply to a 

22 request for referral to the Internal Revenue 

23 Service Independent Office of Appeals which is 

24 denied on the basis that the issue involved is a 


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1 frivolous position (within the meaning of section 

2 6702(c)). 

3 ‘‘(6) STAFF.— 

4 ‘‘(A) IN GENERAL.—All personnel in the 

5 Internal Revenue Service Independent Office of 

6 Appeals shall report to the Chief of Appeals. 

7 ‘‘(B) ACCESS TO STAFF OF OFFICE OF

8 THE CHIEF COUNSEL.—The Chief of Appeals 

9 shall have authority to obtain legal assistance 

10 and advice from the staff of the Office of the 

11 Chief Counsel. The Chief Counsel shall ensure, 

12 to the extent practicable, that such assistance 

13 and advice is provided by staff of the Office of 

14 the Chief Counsel who were not involved in the 

15 case with respect to which such assistance and 

16 advice is sought and who are not involved in 

17 preparing such case for litigation. 

18 ‘‘(7) ACCESS TO CASE FILES.— 

19 ‘‘(A) IN GENERAL.—In any case in which 

20 a conference with the Internal Revenue Service 

21 Independent Office of Appeals has been sched22 uled upon request of a specified taxpayer, the 

23 Chief of Appeals shall ensure that such tax24 payer is provided access to the nonprivileged 

25 portions of the case file on record regarding the 


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1 disputed issues (other than documents provided 

2 by the taxpayer to the Internal Revenue Serv3 ice) not later than 10 days before the date of 

4 such conference. 

5 ‘‘(B) TAXPAYER ELECTION TO EXPEDITE

6 CONFERENCE.—If the taxpayer so elects, sub7 paragraph (A) shall be applied by substituting 

8 ‘the date of such conference’ for ‘10 days before 

9 the date of such conference’. 

10 ‘‘(C) SPECIFIED TAXPAYER.—For pur11 poses of this paragraph— 

12 ‘‘(i) IN GENERAL.—The term ‘speci13 fied taxpayer’ means— 

14 ‘‘(I) in the case of any taxpayer 

15 who is a natural person, a taxpayer 

16 whose adjusted gross income does not 

17 exceed $400,000 for the taxable year 

18 to which the dispute relates, and 

19 ‘‘(II) in the case of any other 

20 taxpayer, a taxpayer whose gross re21 ceipts do not exceed $5 million for the 

22 taxable year to which the dispute re23 lates. 


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1 ‘‘(ii) AGGREGATION RULE.—Rules 

2 similar to the rules of section 448(c)(2) 

3 shall apply for purposes of clause (i)(II).’’. 

4 (b) CONFORMING AMENDMENTS.— 

5 (1) The following provisions are each amended 

6 by striking ‘‘Internal Revenue Service Office of Ap7 peals’’ and inserting ‘‘Internal Revenue Service 

8 Independent Office of Appeals’’: 

9 (A) Section 6015(c)(4)(B)(ii)(I). 

10 (B) Section 6320(b)(1). 

11 (C) Subsections (b)(1) and (d)(3) of sec12 tion 6330. 

13 (D) Section 6603(d)(3)(B). 

14 (E) Section 6621(c)(2)(A)(i). 

15 (F) Section 7122(e)(2). 

16 (G) Subsections (a), (b)(1), (b)(2), and 

17 (c)(1) of section 7123. 

18 (H) Subsections (c)(7)(B)(i) and (g)(2)(A) 

19 of section 7430. 

20 (I) Section 7522(b)(3). 

21 (J) Section 7612(c)(2)(A). 

22 (2) Section 7430(c)(2) is amended by striking 

23 ‘‘Internal Revenue Service Office of Appeals’’ each 

24 place it appears and inserting ‘‘Internal Revenue 

25 Service Independent Office of Appeals’’. 


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1 (3) The heading of section 6330(d)(3) is 

2 amended by inserting ‘‘INDEPENDENT’’ after ‘‘IRS’’. 

3 (c) OTHER REFERENCES.—Any reference in any pro4 vision of law, or regulation or other guidance, to the Inter5 nal Revenue Service Office of Appeals shall be treated as 

6 a reference to the Internal Revenue Service Independent 

7 Office of Appeals. 

8 (d) SAVINGS PROVISIONS.—Rules similar to the rules 

9 of paragraphs (2) through (6) of section 1001(b) of the 

10 Internal Revenue Service Restructuring and Reform Act 

11 of 1998 shall apply for purposes of this section (and the 

12 amendments made by this section). 

13 (e) EFFECTIVE DATE.— 

14 (1) IN GENERAL.—Except as otherwise pro15 vided in this subsection, the amendments made by 

16 this section shall take effect on the date of the en17 actment of this Act. 

18 (2) ACCESS TO CASE FILES.—Section 

19 7803(e)(7) of the Internal Revenue Code of 1986, as 

20 added by subsection (a), shall apply to conferences 

21 occurring after the date which is 1 year after the 

22 date of the enactment of this Act. 


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1 Subtitle B—Improved Service 

2 SEC. 1101. COMPREHENSIVE CUSTOMER SERVICE STRAT3 EGY. 

4 (a) IN GENERAL.—Not later than the date which is 

5 1 year after the date of the enactment of this Act, the 

6 Secretary of the Treasury (or the Secretary’s delegate) 

7 shall submit to Congress a written comprehensive cus8 tomer service strategy for the Internal Revenue Service. 

9 Such strategy shall include— 

10 (1) a plan to provide assistance to taxpayers 

11 that is secure, designed to meet reasonable taxpayer 

12 expectations, and adopts appropriate best practices 

13 of customer service provided in the private sector, 

14 including online services, telephone call back serv15 ices, and training of employees providing customer 

16 services; 

17 (2) a thorough assessment of the services that 

18 the Internal Revenue Service can co-locate with 

19 other Federal services or offer as self-service op20 tions; 

21 (3) proposals to improve Internal Revenue Serv22 ice customer service in the short term (the current 

23 and following fiscal year), medium term (approxi24 mately 3 to 5 fiscal years), and long term (approxi25 mately 10 fiscal years); 


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1 (4) a plan to update guidance and training ma2 terials for customer service employees of the Internal 

3 Revenue Service, including the Internal Revenue 

4 Manual, to reflect such strategy; and 

5 (5) identified metrics and benchmarks for quan6 titatively measuring the progress of the Internal 

7 Revenue Service in implementing such strategy. 

8 (b) UPDATED GUIDANCE AND TRAINING MATE9 RIALS.—Not later than 2 years after the date of the enact10 ment of this Act, the Secretary of the Treasury (or the 

11 Secretary’s delegate) shall make available the updated 

12 guidance and training materials described in subsection 

13 (a)(4) (including the Internal Revenue Manual). Such up14 dated guidance and training materials (including the In15 ternal Revenue Manual) shall be written in a manner so 

16 as to be easily understood by customer service employees 

17 of the Internal Revenue Service and shall provide clear 

18 instructions. 

19 SEC. 1102. LOW-INCOME EXCEPTION FOR PAYMENTS OTH20 ERWISE REQUIRED IN CONNECTION WITH A 

21 SUBMISSION OF AN OFFER-IN-COMPROMISE. 

22 (a) IN GENERAL.—Section 7122(c) is amended by 

23 adding at the end the following new paragraph: 

24 ‘‘(3) EXCEPTION FOR LOW-INCOME TAX25 PAYERS.—Paragraph (1), and any user fee otherwise 


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1 required in connection with the submission of an 

2 offer-in-compromise, shall not apply to any offer-in3 compromise with respect to a taxpayer who is an in4 dividual with adjusted gross income, as determined 

5 for the most recent taxable year for which such in6 formation is available, which does not exceed 250 

7 percent of the applicable poverty level (as deter8 mined by the Secretary).’’. 

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

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

11 after the date of the enactment of this Act. 

12 Subtitle C—Sensible Enforcement 

13 SEC. 1201. INTERNAL REVENUE SERVICE SEIZURE RE14 QUIREMENTS WITH RESPECT TO STRUC15 TURING TRANSACTIONS. 

16 Section 5317(c)(2) of title 31, United States Code, 

17 is amended— 

18 (1) by striking ‘‘Any property’’ and inserting 

19 the following: 

20 ‘‘(A) IN GENERAL.—Any property’’; and 

21 (2) by adding at the end the following: 

22 ‘‘(B) INTERNAL REVENUE SERVICE SEI23 ZURE REQUIREMENTS WITH RESPECT TO

24 STRUCTURING TRANSACTIONS.— 


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1 ‘‘(i) PROPERTY DERIVED FROM AN IL2 LEGAL SOURCE.—Property may only be 

3 seized by the Internal Revenue Service 

4 pursuant to subparagraph (A) by reason of 

5 a claimed violation of section 5324 if the 

6 property to be seized was derived from an 

7 illegal source or the funds were structured 

8 for the purpose of concealing the violation 

9 of a criminal law or regulation other than 

10 section 5324. 

11 ‘‘(ii) NOTICE.—Not later than 30 

12 days after property is seized by the Inter13 nal Revenue Service pursuant to subpara14 graph (A), the Internal Revenue Service 

15 shall— 

16 ‘‘(I) make a good faith effort to 

17 find all persons with an ownership in18 terest in such property; and 

19 ‘‘(II) provide each such person so 

20 found with a notice of the seizure and 

21 of the person’s rights under clause 

22 (iv). 

23 ‘‘(iii) EXTENSION OF NOTICE UNDER

24 CERTAIN CIRCUMSTANCES.—The Internal 

25 Revenue Service may apply to a court of 


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1 competent jurisdiction for one 30-day ex2 tension of the notice requirement under 

3 clause (ii) if the Internal Revenue Service 

4 can establish probable cause of an immi5 nent threat to national security or personal 

6 safety necessitating such extension. 

7 ‘‘(iv) POST-SEIZURE HEARING.—If a 

8 person with an ownership interest in prop9 erty seized pursuant to subparagraph (A) 

10 by the Internal Revenue Service requests a 

11 hearing by a court of competent jurisdic12 tion within 30 days after the date on which 

13 notice is provided under subclause (ii), 

14 such property shall be returned unless the 

15 court holds an adversarial hearing and 

16 finds within 30 days of such request (or 

17 such longer period as the court may pro18 vide, but only on request of an interested 

19 party) that there is probable cause to be20 lieve that there is a violation of section 

21 5324 involving such property and probable 

22 cause to believe that the property to be 

23 seized was derived from an illegal source or 

24 the funds were structured for the purpose 

25 of concealing the violation of a criminal 


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1 law or regulation other than section 

2 5324.’’. 

3 SEC. 1202. EXCLUSION OF INTEREST RECEIVED IN ACTION 

4 TO RECOVER PROPERTY SEIZED BY THE IN5 TERNAL REVENUE SERVICE BASED ON 

6 STRUCTURING TRANSACTION. 

7 (a) IN GENERAL.—Part III of subchapter B of chap8 ter 1 is amended by inserting before section 140 the fol9 lowing new section: 

10 ‘‘SEC. 139H. INTEREST RECEIVED IN ACTION TO RECOVER 

11 PROPERTY SEIZED BY THE INTERNAL REV12 ENUE SERVICE BASED ON STRUCTURING 

13 TRANSACTION. 

14 ‘‘Gross income shall not include any interest received 

15 from the Federal Government in connection with an action 

16 to recover property seized by the Internal Revenue Service 

17 pursuant to section 5317(c)(2) of title 31, United States 

18 Code, by reason of a claimed violation of section 5324 of 

19 such title.’’. 

20 (b) CLERICAL AMENDMENT.—The table of sections 

21 for part III of subchapter B of chapter 1 is amended by 

22 inserting before the item relating to section 140 the fol23 lowing new item: 

‘‘Sec. 139H. Interest received in action to recover property seized by the Internal Revenue Service based on structuring transaction.’’. 


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

2 this section shall apply to interest received on or after the 

3 date of the enactment of this Act. 

4 SEC. 1203. CLARIFICATION OF EQUITABLE RELIEF FROM 

5 JOINT LIABILITY. 

6 (a) IN GENERAL.—Section 6015 is amended— 

7 (1) in subsection (e), by adding at the end the 

8 following new paragraph: 

9 ‘‘(7) STANDARD AND SCOPE OF REVIEW.—Any 

10 review of a determination made under this section 

11 shall be reviewed de novo by the Tax Court and shall 

12 be based upon— 

13 ‘‘(A) the administrative record established 

14 at the time of the determination, and 

15 ‘‘(B) any additional newly discovered or 

16 previously unavailable evidence.’’; and 

17 (2) by amending subsection (f) to read as fol18 lows: 

19 ‘‘(f) EQUITABLE RELIEF.— 

20 ‘‘(1) IN GENERAL.—Under procedures pre21 scribed by the Secretary, if— 

22 ‘‘(A) taking into account all the facts and 

23 circumstances, it is inequitable to hold the indi24 vidual liable for any unpaid tax or any defi25 ciency (or any portion of either), and 


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1 ‘‘(B) relief is not available to such indi2 vidual under subsection (b) or (c), 

3 the Secretary may relieve such individual of such li4 ability. 

5 ‘‘(2) LIMITATION.—A request for equitable re6 lief under this subsection may be made with respect 

7 to any portion of any liability that— 

8 ‘‘(A) has not been paid, provided that such 

9 request is made before the expiration of the ap10 plicable period of limitation under section 6502, 

11 or 

12 ‘‘(B) has been paid, provided that such re13 quest is made during the period in which the 

14 individual could submit a timely claim for re15 fund or credit of such payment.’’. 

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

17 this section shall apply to petitions or requests filed or 

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

19 SEC. 1204. MODIFICATION OF PROCEDURES FOR ISSUANCE 

20 OF THIRD-PARTY SUMMONS. 

21 (a) IN GENERAL.—Section 7609(f) is amended by 

22 adding at the end the following flush sentence: 

23 ‘‘The Secretary shall not issue any summons described in 

24 the preceding sentence unless the information sought to 

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1 tains to the failure (or potential failure) of the person or 

2 group or class of persons referred to in paragraph (2) to 

3 comply with one or more provisions of the internal revenue 

4 law which have been identified for purposes of such para5 graph.’’. 

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

7 this section shall apply to summonses served after the date 

8 that is 45 days after the date of the enactment of this 

9 Act. 

10 SEC. 1205. PRIVATE DEBT COLLECTION AND SPECIAL COM11 PLIANCE PERSONNEL PROGRAM. 

12 (a) CERTAIN TAX RECEIVABLES NOT ELIGIBLE FOR

13 COLLECTION UNDER TAX COLLECTION CONTRACTS.— 

14 Section 6306(d)(3) is amended by striking ‘‘or’’ at the end 

15 of subparagraph (C) and by inserting after subparagraph 

16 (D) the following new subparagraphs: 

17 ‘‘(E) a taxpayer substantially all of whose 

18 income consists of disability insurance benefits 

19 under section 223 of the Social Security Act or 

20 supplemental security income benefits under 

21 title XVI of the Social Security Act (including 

22 supplemental security income benefits of the 

23 type described in section 1616 of such Act or 

24 section 212 of Public Law 93–66), or 


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1 ‘‘(F) a taxpayer who is an individual with 

2 adjusted gross income, as determined for the 

3 most recent taxable year for which such infor4 mation is available, which does not exceed 200 

5 percent of the applicable poverty level (as deter6 mined by the Secretary),’’. 

7 (b) DETERMINATION OF INACTIVE TAX RECEIV8 ABLES ELIGIBLE FOR COLLECTION UNDER TAX COLLEC9 TION CONTRACTS.—Section 6306(c)(2)(A)(ii) is amended 

by striking ‘‘more than 1 10 ⁄3 of the period of the applicable 

11 statute of limitation has lapsed’’ and inserting ‘‘more than 

12 2 years has passed since assessment’’. 

13 (c) MAXIMUM LENGTH OF INSTALLMENT AGREE14 MENTS OFFERED UNDER TAX COLLECTION CON15 TRACTS.—Section 6306(b)(1)(B) is amended by striking 

16 ‘‘5 years’’ and inserting ‘‘7 years’’. 

17 (d) CLARIFICATION THAT SPECIAL COMPLIANCE

18 PERSONNEL PROGRAM ACCOUNT MAY BE USED FOR

19 PROGRAM COSTS.— 

20 (1) IN GENERAL.—Section 6307(b) is amend21 ed— 

22 (A) in paragraph (2), by striking all that 

23 follows ‘‘under such program’’ and inserting a 

24 period, and 


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1 (B) in paragraph (3), by striking all that 

2 follows ‘‘out of such account’’ and inserting 

3 ‘‘for other than program costs.’’. 

4 (2) COMMUNICATIONS, SOFTWARE, AND TECH5 NOLOGY COSTS TREATED AS PROGRAM COSTS.—Sec6 tion 6307(d)(2)(B) is amended by striking ‘‘tele7 communications’’ and inserting ‘‘communications, 

8 software, technology’’. 

9 (3) CONFORMING AMENDMENT.—Section 

10 6307(d)(2) is amended by striking ‘‘and’’ at the end 

11 of subparagraph (A), by striking the period at the 

12 end of subparagraph (B) and inserting ‘‘, and’’, and 

13 by inserting after subparagraph (B) the following 

14 new subparagraph: 

15 ‘‘(C) reimbursement of the Internal Rev16 enue Service or other government agencies for 

17 the cost of administering the qualified tax col18 lection program under section 6306.’’. 

19 (e) EFFECTIVE DATES.— 

20 (1) IN GENERAL.—Except as otherwise pro21 vided in this subsection, the amendments made by 

22 this section shall apply to tax receivables identified 

23 by the Secretary (or the Secretary’s delegate) after 

24 December 31, 2020. 


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1 (2) MAXIMUM LENGTH OF INSTALLMENT

2 AGREEMENTS.—The amendment made by subsection 

3 (c) shall apply to contracts entered into after the 

4 date of the enactment of this Act. 

5 (3) USE OF SPECIAL COMPLIANCE PERSONNEL

6 PROGRAM ACCOUNT.—The amendment made by sub7 section (d) shall apply to amounts expended from 

8 the special compliance personnel program account 

9 after the date of the enactment of this Act. 

10 SEC. 1206. REFORM OF NOTICE OF CONTACT OF THIRD 

11 PARTIES. 

12 (a) IN GENERAL.—Section 7602(c)(1) is amended to 

13 read as follows: 

14 ‘‘(1) GENERAL NOTICE.—An officer or em15 ployee of the Internal Revenue Service may not con16 tact any person other than the taxpayer with respect 

17 to the determination or collection of the tax liability 

18 of such taxpayer unless such contact occurs during 

19 a period (not greater than 1 year) which is specified 

20 in a notice which— 

21 ‘‘(A) informs the taxpayer that contacts 

22 with persons other than the taxpayer are in23 tended to be made during such period, and 

24 ‘‘(B) except as otherwise provided by the 

25 Secretary, is provided to the taxpayer not later 


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1 than 45 days before the beginning of such pe2 riod. 

3 Nothing in the preceding sentence shall prevent the 

4 issuance of notices to the same taxpayer with respect 

5 to the same tax liability with periods specified there6 in that, in the aggregate, exceed 1 year. A notice 

7 shall not be issued under this paragraph unless 

8 there is an intent at the time such notice is issued 

9 to contact persons other than the taxpayer during 

10 the period specified in such notice. The preceding 

11 sentence shall not prevent the issuance of a notice 

12 if the requirement of such sentence is met on the 

13 basis of the assumption that the information sought 

14 to be obtained by such contact will not be obtained 

15 by other means before such contact.’’. 

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

17 this section shall apply to notices provided, and contacts 

18 of persons made, after the date which is 45 days after 

19 the date of the enactment of this Act. 

20 SEC. 1207. MODIFICATION OF AUTHORITY TO ISSUE DES21 IGNATED SUMMONS. 

22 (a) IN GENERAL.—Paragraph (1) of section 6503(j) 

23 is amended by striking ‘‘coordinated examination pro24 gram’’ and inserting ‘‘coordinated industry case pro25 gram’’. 


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1 (b) REQUIREMENTS FOR SUMMONS.—Clause (i) of 

2 section 6503(j)(2)(A) is amended to read as follows: 

3 ‘‘(i) the issuance of such summons is 

4 preceded by a review and written approval 

5 of such issuance by the Commissioner of 

6 the relevant operating division of the Inter7 nal Revenue Service and the Chief Counsel 

8 which— 

9 ‘‘(I) states facts clearly estab10 lishing that the Secretary has made 

11 reasonable requests for the informa12 tion that is the subject of the sum13 mons, and 

14 ‘‘(II) is attached to such sum15 mons,’’. 

16 (c) ESTABLISHMENT THAT REASONABLE REQUESTS

17 FOR INFORMATION WERE MADE.—Subsection (j) of sec18 tion 6503 is amended by adding at the end the following 

19 new paragraph: 

20 ‘‘(4) ESTABLISHMENT THAT REASONABLE RE21 QUESTS FOR INFORMATION WERE MADE.—In any 

22 court proceeding described in paragraph (3), the 

23 Secretary shall establish that reasonable requests 

24 were made for the information that is the subject of 

25 the summons.’’. 


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

2 this section shall apply to summonses issued after the date 

3 which is 45 days after the date of the enactment of this 

4 Act. 

5 SEC. 1208. LIMITATION ON ACCESS OF NON-INTERNAL REV6 ENUE SERVICE EMPLOYEES TO RETURNS 

7 AND RETURN INFORMATION. 

8 (a) IN GENERAL.—Section 7602 is amended by add9 ing at the end the following new subsection: 

10 ‘‘(f) LIMITATION ON ACCESS OF PERSONS OTHER

11 THAN INTERNAL REVENUE SERVICE OFFICERS AND EM12 PLOYEES.—The Secretary shall not, under the authority 

13 of section 6103(n), provide any books, papers, records, or 

14 other data obtained pursuant to this section to any person 

15 authorized under section 6103(n), except when such per16 son requires such information for the sole purpose of pro17 viding expert evaluation and assistance to the Internal 

18 Revenue Service. No person other than an officer or em19 ployee of the Internal Revenue Service or the Office of 

20 Chief Counsel may, on behalf of the Secretary, question 

21 a witness under oath whose testimony was obtained pursu22 ant to this section.’’. 

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

24 this section— 


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1 (1) shall take effect on the date of the enact2 ment of this Act; and 

3 (2) shall not fail to apply to a contract in effect 

4 under section 6103(n) of the Internal Revenue Code 

5 of 1986 merely because such contract was in effect 

6 before the date of the enactment of this Act. 

7 Subtitle D—Organizational 

8 Modernization 

9 SEC. 1301. OFFICE OF THE NATIONAL TAXPAYER ADVO10 CATE. 

11 (a) TAXPAYER ADVOCATE DIRECTIVES.— 

12 (1) IN GENERAL.—Section 7803(c) is amended 

13 by adding at the end the following new paragraph: 

14 ‘‘(5) TAXPAYER ADVOCATE DIRECTIVES.—In 

15 the case of any Taxpayer Advocate Directive issued 

16 by the National Taxpayer Advocate pursuant to a 

17 delegation of authority from the Commissioner of In18 ternal Revenue— 

19 ‘‘(A) the Commissioner or a Deputy Com20 missioner shall modify, rescind, or ensure com21 pliance with such directive not later than 90 

22 days after the issuance of such directive, and 

23 ‘‘(B) in the case of any directive which is 

24 modified or rescinded by a Deputy Commis25 sioner, the National Taxpayer Advocate may 


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1 (not later than 90 days after such modification 

2 or rescission) appeal to the Commissioner, and 

3 the Commissioner shall (not later than 90 days 

4 after such appeal is made) ensure compliance 

5 with such directive as issued by the National 

6 Taxpayer Advocate or provide the National 

7 Taxpayer Advocate with the reasons for any 

8 modification or rescission made or upheld by 

9 the Commissioner pursuant to such appeal.’’. 

10 (2) REPORT TO CERTAIN COMMITTEES OF CON11 GRESS REGARDING DIRECTIVES.—Section 

12 7803(c)(2)(B)(ii) is amended by redesignating sub13 clauses (VIII) through (XI) as subclauses (IX) 

14 through (XII), respectively, and by inserting after 

15 subclause (VII) the following new subclause: 

16 ‘‘(VIII) identify any Taxpayer 

17 Advocate Directive which was not 

18 honored by the Internal Revenue 

19 Service in a timely manner, as speci20 fied under paragraph (5);’’. 

21 (b) NATIONAL TAXPAYER ADVOCATE ANNUAL RE22 PORTS TO CONGRESS.— 

23 (1) INCLUSION OF MOST SERIOUS TAXPAYER

24 PROBLEMS.—Section 7803(c)(2)(B)(ii)(III) is 


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1 amended by striking ‘‘at least 20 of the’’ and insert2 ing ‘‘the 10’’. 

3 (2) COORDINATION WITH TREASURY INSPECTOR

4 GENERAL FOR TAX ADMINISTRATION.—Section 

5 7803(c)(2) is amended by adding at the end the fol6 lowing new subparagraph: 

7 ‘‘(E) COORDINATION WITH TREASURY IN8 SPECTOR GENERAL FOR TAX ADMINISTRA9 TION.—Before beginning any research or study, 

10 the National Taxpayer Advocate shall coordi11 nate with the Treasury Inspector General for 

12 Tax Administration to ensure that the National 

13 Taxpayer Advocate does not duplicate any ac14 tion that the Treasury Inspector General for 

15 Tax Administration has already undertaken or 

16 has a plan to undertake.’’. 

17 (3) STATISTICAL SUPPORT.— 

18 (A) IN GENERAL.—Section 6108 is amend19 ed by adding at the end the following new sub20 section: 

21 ‘‘(d) STATISTICAL SUPPORT FOR NATIONAL TAX22 PAYER ADVOCATE.—Upon request of the National Tax23 payer Advocate, the Secretary shall, to the extent prac24 ticable, provide the National Taxpayer Advocate with sta25 tistical support in connection with the preparation by the 


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1 National Taxpayer Advocate of the annual report de2 scribed in section 7803(c)(2)(B)(ii). Such statistical sup3 port shall include statistical studies, compilations, and the 

4 review of information provided by the National Taxpayer 

5 Advocate for statistical validity and sound statistical 

6 methodology.’’. 

7 (B) DISCLOSURE OF REVIEW.—Section 

8 7803(c)(2)(B)(ii), as amended by subsection 

9 (a), is amended by striking ‘‘and’’ at the end of 

10 subclause (XI), by redesignating subclause 

11 (XII) as subclause (XIII), and by inserting 

12 after subclause (XI) the following new sub13 clause: 

14 ‘‘(XII) with respect to any statis15 tical information included in such re16 port, include a statement of whether 

17 such statistical information was re18 viewed or provided by the Secretary 

19 under section 6108(d) and, if so, 

20 whether the Secretary determined 

21 such information to be statistically 

22 valid and based on sound statistical 

23 methodology; and’’. 

24 (C) CONFORMING AMENDMENT.—Section 

25 7803(c)(2)(B)(iii) is amended by adding at the 


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1 end the following: ‘‘The preceding sentence 

2 shall not apply with respect to statistical infor3 mation provided to the Secretary for review, or 

4 received from the Secretary, under section 

5 6108(d).’’. 

6 (c) SALARY OF NATIONAL TAXPAYER ADVOCATE.— 

7 Section 7803(c)(1)(B)(i) is amended by striking ‘‘, or, if 

8 the Secretary of the Treasury so determines, at a rate 

9 fixed under section 9503 of such title’’. 

10 (d) EFFECTIVE DATE.— 

11 (1) IN GENERAL.—Except as otherwise pro12 vided in this subsection, the amendments made by 

13 this section shall take effect on the date of the en14 actment of this Act. 

15 (2) SALARY OF NATIONAL TAXPAYER ADVO16 CATE.—The amendment made by subsection (c) 

17 shall apply to compensation paid to individuals ap18 pointed as the National Taxpayer Advocate after 

19 March 31, 2019. 

20 SEC. 1302. MODERNIZATION OF INTERNAL REVENUE SERV21 ICE ORGANIZATIONAL STRUCTURE. 

22 (a) IN GENERAL.—Not later than September 30, 

23 2020, the Secretary of the Treasury (or the Secretary’s 

24 delegate) shall submit to Congress a comprehensive writVerDate Sep 11 2014 21:55 Jun 13, 2019 Jkt 089200 PO 00000 Frm 00031 Fmt 6652 Sfmt 6201 E:\BILLS\H3151.RDS H3151

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1 ten plan to redesign the organization of the Internal Rev2 enue Service. Such plan shall— 

3 (1) ensure the successful implementation of the 

4 priorities specified by Congress in this Act; 

5 (2) prioritize taxpayer services to ensure that 

6 all taxpayers easily and readily receive the assistance 

7 that they need; 

8 (3) streamline the structure of the agency in9 cluding minimizing the duplication of services and 

10 responsibilities within the agency; 

11 (4) best position the Internal Revenue Service 

12 to combat cybersecurity and other threats to the In13 ternal Revenue Service; and 

14 (5) address whether the Criminal Investigation 

15 Division of the Internal Revenue Service should re16 port directly to the Commissioner of Internal Rev17 enue. 

18 (b) REPEAL OF RESTRICTION ON ORGANIZATIONAL

19 STRUCTURE OF INTERNAL REVENUE SERVICE.—Para20 graph (3) of section 1001(a) of the Internal Revenue Serv21 ice Restructuring and Reform Act of 1998 shall cease to 

22 apply beginning 1 year after the date on which the plan 

23 described in subsection (a) is submitted to Congress. 


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1 Subtitle E—Other Provisions 

2 SEC. 1401. RETURN PREPARATION PROGRAMS FOR APPLI3 CABLE TAXPAYERS. 

4 (a) IN GENERAL.—Chapter 77 is amended by insert5 ing after section 7526 the following new section: 

6 ‘‘SEC. 7526A. RETURN PREPARATION PROGRAMS FOR AP7 PLICABLE TAXPAYERS. 

8 ‘‘(a) ESTABLISHMENT OF VOLUNTEER INCOME TAX

9 ASSISTANCE MATCHING GRANT PROGRAM.—The Sec10 retary shall establish a Community Volunteer Income Tax 

11 Assistance Matching Grant Program under which the Sec12 retary may, subject to the availability of appropriated 

13 funds, make grants to provide matching funds for the de14 velopment, expansion, or continuation of qualified return 

15 preparation programs assisting applicable taxpayers and 

16 members of underserved populations. 

17 ‘‘(b) USE OF FUNDS.— 

18 ‘‘(1) IN GENERAL.—Qualified return prepara19 tion programs may use grants received under this 

20 section for— 

21 ‘‘(A) ordinary and necessary costs associ22 ated with program operation in accordance with 

23 cost principles under the applicable Office of 

24 Management and Budget circular, including— 


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1 ‘‘(i) wages or salaries of persons co2 ordinating the activities of the program, 

3 ‘‘(ii) developing training materials, 

4 conducting training, and performing qual5 ity reviews of the returns prepared under 

6 the program, 

7 ‘‘(iii) equipment purchases, and 

8 ‘‘(iv) vehicle-related expenses associ9 ated with remote or rural tax preparation 

10 services, 

11 ‘‘(B) outreach and educational activities 

12 described in subsection (c)(2)(B), and 

13 ‘‘(C) services related to financial education 

14 and capability, asset development, and the es15 tablishment of savings accounts in connection 

16 with tax return preparation. 

17 ‘‘(2) REQUIREMENT OF MATCHING FUNDS.—A 

18 qualified return preparation program must provide 

19 matching funds on a dollar-for-dollar basis for all 

20 grants provided under this section. Matching funds 

21 may include— 

22 ‘‘(A) the salary (including fringe benefits) 

23 of individuals performing services for the pro24 gram, 


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1 ‘‘(B) the cost of equipment used in the 

2 program, and 

3 ‘‘(C) other ordinary and necessary costs 

4 associated with the program. 

5 Indirect expenses, including general overhead of any 

6 entity administering the program, shall not be 

7 counted as matching funds. 

8 ‘‘(c) APPLICATION.— 

9 ‘‘(1) IN GENERAL.—Each applicant for a grant 

10 under this section shall submit an application to the 

11 Secretary at such time, in such manner, and con12 taining such information as the Secretary may rea13 sonably require. 

14 ‘‘(2) PRIORITY.—In awarding grants under this 

15 section, the Secretary shall give priority to applica16 tions which demonstrate— 

17 ‘‘(A) assistance to applicable taxpayers, 

18 with emphasis on outreach to, and services for, 

19 such taxpayers, 

20 ‘‘(B) taxpayer outreach and educational 

21 activities relating to eligibility and availability 

22 of income supports available through this title, 

23 including the earned income tax credit, and 

24 ‘‘(C) specific outreach and focus on one or 

25 more underserved populations. 


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1 ‘‘(3) AMOUNTS TAKEN INTO ACCOUNT.—In de2 termining matching grants under this section, the 

3 Secretary shall only take into account amounts pro4 vided by the qualified return preparation program 

5 for expenses described in subsection (b). 

6 ‘‘(d) PROGRAM ADHERENCE.— 

7 ‘‘(1) IN GENERAL.—The Secretary shall estab8 lish procedures for, and shall conduct not less fre9 quently than once every 5 calendar years during 

10 which a qualified return preparation program is op11 erating under a grant under this section, periodic 

12 site visits— 

13 ‘‘(A) to ensure the program is carrying out 

14 the purposes of this section, and 

15 ‘‘(B) to determine whether the program 

16 meets such program adherence standards as the 

17 Secretary shall by regulation or other guidance 

18 prescribe. 

19 ‘‘(2) ADDITIONAL REQUIREMENTS FOR GRANT

20 RECIPIENTS NOT MEETING PROGRAM ADHERENCE

21 STANDARDS.—In the case of any qualified return 

22 preparation program which— 

23 ‘‘(A) is awarded a grant under this section, 

24 and 

25 ‘‘(B) is subsequently determined— 


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1 ‘‘(i) not to meet the program adher2 ence standards described in paragraph 

3 (1)(B), or 

4 ‘‘(ii) not to be otherwise carrying out 

5 the purposes of this section, 

6 such program shall not be eligible for any additional 

7 grants under this section unless such program pro8 vides sufficient documentation of corrective meas9 ures established to address any such deficiencies de10 termined. 

11 ‘‘(e) DEFINITIONS.—For purposes of this section— 

12 ‘‘(1) QUALIFIED RETURN PREPARATION PRO13 GRAM.—The term ‘qualified return preparation pro14 gram’ means any program— 

15 ‘‘(A) which provides assistance to individ16 uals, not less than 90 percent of whom are ap17 plicable taxpayers, in preparing and filing Fed18 eral income tax returns, 

19 ‘‘(B) which is administered by a qualified 

20 entity, 

21 ‘‘(C) in which all volunteers who assist in 

22 the preparation of Federal income tax returns 

23 meet the training requirements prescribed by 

24 the Secretary, and 


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1 ‘‘(D) which uses a quality review process 

2 which reviews 100 percent of all returns. 

3 ‘‘(2) QUALIFIED ENTITY.— 

4 ‘‘(A) IN GENERAL.—The term ‘qualified 

5 entity’ means any entity which— 

6 ‘‘(i) is an eligible organization, 

7 ‘‘(ii) is in compliance with Federal tax 

8 filing and payment requirements, 

9 ‘‘(iii) is not debarred or suspended 

10 from Federal contracts, grants, or coopera11 tive agreements, and 

12 ‘‘(iv) agrees to provide documentation 

13 to substantiate any matching funds pro14 vided pursuant to the grant program under 

15 this section. 

16 ‘‘(B) ELIGIBLE ORGANIZATION.—The term 

17 ‘eligible organization’ means— 

18 ‘‘(i) an institution of higher education 

19 which is described in section 102 (other 

20 than subsection (a)(1)(C) thereof) of the 

21 Higher Education Act of 1965 (20 U.S.C. 

22 1002), as in effect on the date of the en23 actment of this section, and which has not 

24 been disqualified from participating in a 

25 program under title IV of such Act, 


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1 ‘‘(ii) an organization described in sec2 tion 501(c) and exempt from tax under 

3 section 501(a), 

4 ‘‘(iii) a local government agency, in5 cluding— 

6 ‘‘(I) a county or municipal gov7 ernment agency, and 

8 ‘‘(II) an Indian tribe, as defined 

9 in section 4(13) of the Native Amer10 ican Housing Assistance and Self-De11 termination Act of 1996 (25 U.S.C. 

12 4103(13)), including any tribally des13 ignated housing entity (as defined in 

14 section 4(22) of such Act (25 U.S.C. 

15 4103(22))), tribal subsidiary, subdivi16 sion, or other wholly owned tribal en17 tity, 

18 ‘‘(iv) a local, State, regional, or na19 tional coalition (with one lead organization 

20 which meets the eligibility requirements of 

21 clause (i), (ii), or (iii) acting as the appli22 cant organization), or 

23 ‘‘(v) in the case of applicable tax24 payers and members of underserved popu25 lations with respect to which no organizaVerDate Sep 11 2014 21:55 Jun 13, 2019 Jkt 089200 PO 00000 Frm 00039 Fmt 6652 Sfmt 6201 E:\BILLS\H3151.RDS H3151

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1 tions described in the preceding clauses are 

2 available— 

3 ‘‘(I) a State government agency, 

4 or 

5 ‘‘(II) an office providing Cooper6 ative Extension services (as estab7 lished at the land-grant colleges and 

8 universities under the Smith-Lever 

9 Act of May 8, 1914). 

10 ‘‘(3) APPLICABLE TAXPAYERS.—The term ‘ap11 plicable taxpayer’ means a taxpayer whose income 

12 for the taxable year does not exceed an amount 

13 equal to the completed phaseout amount under sec14 tion 32(b) for a married couple filing a joint return 

15 with three or more qualifying children, as deter16 mined in a revenue procedure or other published 

17 guidance. 

18 ‘‘(4) UNDERSERVED POPULATION.—The term 

19 ‘underserved population’ includes populations of per20 sons with disabilities, persons with limited English 

21 proficiency, Native Americans, individuals living in 

22 rural areas, members of the Armed Forces and their 

23 spouses, and the elderly. 

24 ‘‘(f) SPECIAL RULES AND LIMITATIONS.— 


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1 ‘‘(1) DURATION OF GRANTS.—Upon application 

2 of a qualified return preparation program, the Sec3 retary is authorized to award a multi-year grant not 

4 to exceed 3 years. 

5 ‘‘(2) AGGREGATE LIMITATION.—Unless other6 wise provided by specific appropriation, the Sec7 retary shall not allocate more than $30 million per 

8 fiscal year (exclusive of costs of administering the 

9 program) to grants under this section. 

10 ‘‘(g) PROMOTION OF PROGRAMS.— 

11 ‘‘(1) IN GENERAL.—The Secretary shall pro12 mote tax preparation through qualified return prepa13 ration programs through the use of mass commu14 nications and other means. 

15 ‘‘(2) PROVISION OF INFORMATION REGARDING

16 QUALIFIED RETURN PREPARATION PROGRAMS.—The 

17 Secretary may provide taxpayers information regard18 ing qualified return preparation programs receiving 

19 grants under this section. 

20 ‘‘(3) REFERRALS TO LOW-INCOME TAXPAYER

21 CLINICS.—Qualified return preparation programs re22 ceiving a grant under this section are encouraged, in 

23 appropriate cases, to— 

24 ‘‘(A) advise taxpayers of the availability of, 

25 and eligibility requirements for receiving, advice 


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1 and assistance from qualified low-income tax2 payer clinics receiving funding under section 

3 7526, and 

4 ‘‘(B) provide information regarding the lo5 cation of, and contact information for, such 

6 clinics.’’. 

7 (b) CLERICAL AMENDMENT.—The table of sections 

8 for chapter 77 is amended by inserting after the item re9 lating to section 7526 the following new item: 

‘‘Sec. 7526A. Return preparation programs for applicable taxpayers.’’. 

10 SEC. 1402. PROVISION OF INFORMATION REGARDING LOW11 INCOME TAXPAYER CLINICS. 

12 (a) IN GENERAL.—Section 7526(c) is amended by 

13 adding at the end the following new paragraph: 

14 ‘‘(6) PROVISION OF INFORMATION REGARDING

15 QUALIFIED LOW-INCOME TAXPAYER CLINICS.—Not16 withstanding any other provision of law, officers and 

17 employees of the Department of the Treasury may— 

18 ‘‘(A) advise taxpayers of the availability of, 

19 and eligibility requirements for receiving, advice 

20 and assistance from one or more specific quali21 fied low-income taxpayer clinics receiving fund22 ing under this section, and 

23 ‘‘(B) provide information regarding the lo24 cation of, and contact information for, such 

25 clinics.’’. 


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

2 this section shall take effect on the date of the enactment 

3 of this Act. 

4 SEC. 1403. NOTICE FROM IRS REGARDING CLOSURE OF 

5 TAXPAYER ASSISTANCE CENTERS. 

6 Not later than 90 days before the date that a pro7 posed closure of a Taxpayer Assistance Center would take 

8 effect, the Secretary of the Treasury (or the Secretary’s 

9 delegate) shall— 

10 (1) make publicly available (including by non11 electronic means) a notice which— 

12 (A) identifies the Taxpayer Assistance 

13 Center proposed for closure and the date of 

14 such proposed closure; and 

15 (B) identifies the relevant alternative 

16 sources of taxpayer assistance which may be 

17 utilized by taxpayers affected by such proposed 

18 closure; and 

19 (2) submit to Congress a written report that in20 cludes— 

21 (A) the information included in the notice 

22 described in paragraph (1); 

23 (B) the reasons for such proposed closure; 

24 and 


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1 (C) such other information as the Sec2 retary may determine appropriate. 

3 SEC. 1404. RULES FOR SEIZURE AND SALE OF PERISHABLE 

4 GOODS RESTRICTED TO ONLY PERISHABLE 

5 GOODS. 

6 (a) IN GENERAL.—Section 6336 is amended by strik7 ing ‘‘or become greatly reduced in price or value by keep8 ing, or that such property cannot be kept without great 

9 expense’’. 

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

11 this section shall apply to property seized after the date 

12 of the enactment of this Act. 

13 SEC. 1405. WHISTLEBLOWER REFORMS. 

14 (a) MODIFICATIONS TO DISCLOSURE RULES FOR

15 WHISTLEBLOWERS.— 

16 (1) IN GENERAL.—Section 6103(k) is amended 

17 by adding at the end the following new paragraph: 

18 ‘‘(13) DISCLOSURE TO WHISTLEBLOWERS.— 

19 ‘‘(A) IN GENERAL.—The Secretary may 

20 disclose, to any individual providing information 

21 relating to any purpose described in paragraph 

22 (1) or (2) of section 7623(a), return informa23 tion related to the investigation of any taxpayer 

24 with respect to whom the individual has pro25 vided such information, but only to the extent 


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1 that such disclosure is necessary in obtaining 

2 information, which is not otherwise reasonably 

3 available, with respect to the correct determina4 tion of tax liability for tax, or the amount to be 

5 collected with respect to the enforcement of any 

6 other provision of this title. 

7 ‘‘(B) UPDATES ON WHISTLEBLOWER IN8 VESTIGATIONS.—The Secretary shall disclose to 

9 an individual providing information relating to 

10 any purpose described in paragraph (1) or (2) 

11 of section 7623(a) the following: 

12 ‘‘(i) Not later than 60 days after a 

13 case for which the individual has provided 

14 information has been referred for an audit 

15 or examination, a notice with respect to 

16 such referral. 

17 ‘‘(ii) Not later than 60 days after a 

18 taxpayer with respect to whom the indi19 vidual has provided information has made 

20 a payment of tax with respect to tax liabil21 ity to which such information relates, a no22 tice with respect to such payment. 

23 ‘‘(iii) Subject to such requirements 

24 and conditions as are prescribed by the 


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1 Secretary, upon a written request by such 

2 individual— 

3 ‘‘(I) information on the status 

4 and stage of any investigation or ac5 tion related to such information, and 

6 ‘‘(II) in the case of a determina7 tion of the amount of any award 

8 under section 7623(b), the reasons for 

9 such determination. 

10 Clause (iii) shall not apply to any information 

11 if the Secretary determines that disclosure of 

12 such information would seriously impair Fed13 eral tax administration. Information described 

14 in clauses (i), (ii), and (iii) may be disclosed to 

15 a designee of the individual providing such in16 formation in accordance with guidance provided 

17 by the Secretary.’’. 

18 (2) CONFORMING AMENDMENTS.— 

19 (A) CONFIDENTIALITY OF INFORMA20 TION.—Section 6103(a)(3) is amended by strik21 ing ‘‘subsection (k)(10)’’ and inserting ‘‘para22 graph (10) or (13) of subsection (k)’’. 

23 (B) PENALTY FOR UNAUTHORIZED DIS24 CLOSURE.—Section 7213(a)(2) is amended by 


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1 striking ‘‘(k)(10)’’ and inserting ‘‘(k)(10) or 

2 (13)’’. 

3 (C) COORDINATION WITH AUTHORITY TO

4 DISCLOSE FOR INVESTIGATIVE PURPOSES.— 

5 Section 6103(k)(6) is amended by adding at the 

6 end the following new sentence: ‘‘This para7 graph shall not apply to any disclosure to an in8 dividual providing information relating to any 

9 purpose described in paragraph (1) or (2) of 

10 section 7623(a) which is made under paragraph 

11 (13)(A).’’. 

12 (b) PROTECTION AGAINST RETALIATION.—Section 

13 7623 is amended by adding at the end the following new 

14 subsection: 

15 ‘‘(d) CIVIL ACTION TO PROTECT AGAINST RETALIA16 TION CASES.— 

17 ‘‘(1) ANTI-RETALIATION WHISTLEBLOWER PRO18 TECTION FOR EMPLOYEES.—No employer, or any of19 ficer, employee, contractor, subcontractor, or agent 

20 of such employer, may discharge, demote, suspend, 

21 threaten, harass, or in any other manner discrimi22 nate against an employee in the terms and condi23 tions of employment (including through an act in the 

24 ordinary course of such employee’s duties) in re25 prisal for any lawful act done by the employee— 


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1 ‘‘(A) to provide information, cause infor2 mation to be provided, or otherwise assist in an 

3 investigation regarding underpayment of tax or 

4 any conduct which the employee reasonably be5 lieves constitutes a violation of the internal rev6 enue laws or any provision of Federal law relat7 ing to tax fraud, when the information or as8 sistance is provided to the Internal Revenue 

9 Service, the Secretary of the Treasury, the 

10 Treasury Inspector General for Tax Adminis11 tration, the Comptroller General of the United 

12 States, the Department of Justice, the United 

13 States Congress, a person with supervisory au14 thority over the employee, or any other person 

15 working for the employer who has the authority 

16 to investigate, discover, or terminate mis17 conduct, or 

18 ‘‘(B) to testify, participate in, or otherwise 

19 assist in any administrative or judicial action 

20 taken by the Internal Revenue Service relating 

21 to an alleged underpayment of tax or any viola22 tion of the internal revenue laws or any provi23 sion of Federal law relating to tax fraud. 

24 ‘‘(2) ENFORCEMENT ACTION.— 


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1 ‘‘(A) IN GENERAL.—A person who alleges 

2 discharge or other reprisal by any person in vio3 lation of paragraph (1) may seek relief under 

4 paragraph (3) by— 

5 ‘‘(i) filing a complaint with the Sec6 retary of Labor, or 

7 ‘‘(ii) if the Secretary of Labor has not 

8 issued a final decision within 180 days of 

9 the filing of the complaint and there is no 

10 showing that such delay is due to the bad 

11 faith of the claimant, bringing an action at 

12 law or equity for de novo review in the ap13 propriate district court of the United 

14 States, which shall have jurisdiction over 

15 such an action without regard to the 

16 amount in controversy. 

17 ‘‘(B) PROCEDURE.— 

18 ‘‘(i) IN GENERAL.—An action under 

19 subparagraph (A)(i) shall be governed 

20 under the rules and procedures set forth in 

21 section 42121(b) of title 49, United States 

22 Code. 

23 ‘‘(ii) EXCEPTION.—Notification made 

24 under section 42121(b)(1) of title 49, 

25 United States Code, shall be made to the 


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1 person named in the complaint and to the 

2 employer. 

3 ‘‘(iii) BURDENS OF PROOF.—An ac4 tion brought under subparagraph (A)(ii) 

5 shall be governed by the legal burdens of 

6 proof set forth in section 42121(b) of title 

7 49, United States Code, except that in ap8 plying such section— 

9 ‘‘(I) ‘behavior described in para10 graph (1)’ shall be substituted for ‘be11 havior described in paragraphs (1) 

12 through (4) of subsection (a)’ each 

13 place it appears in paragraph (2)(B) 

14 thereof, and 

15 ‘‘(II) ‘a violation of paragraph 

16 (1)’ shall be substituted for ‘a viola17 tion of subsection (a)’ each place it 

18 appears. 

19 ‘‘(iv) STATUTE OF LIMITATIONS.—A 

20 complaint under subparagraph (A)(i) shall 

21 be filed not later than 180 days after the 

22 date on which the violation occurs. 

23 ‘‘(v) JURY TRIAL.—A party to an ac24 tion brought under subparagraph (A)(ii) 

25 shall be entitled to trial by jury. 


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1 ‘‘(3) REMEDIES.— 

2 ‘‘(A) IN GENERAL.—An employee pre3 vailing in any action under paragraph (2)(A) 

4 shall be entitled to all relief necessary to make 

5 the employee whole. 

6 ‘‘(B) COMPENSATORY DAMAGES.—Relief 

7 for any action under subparagraph (A) shall in8 clude— 

9 ‘‘(i) reinstatement with the same se10 niority status that the employee would 

11 have had, but for the reprisal, 

12 ‘‘(ii) the sum of 200 percent of the 

13 amount of back pay and 100 percent of all 

14 lost benefits, with interest, and 

15 ‘‘(iii) compensation for any special 

16 damages sustained as a result of the re17 prisal, including litigation costs, expert wit18 ness fees, and reasonable attorney fees. 

19 ‘‘(4) RIGHTS RETAINED BY EMPLOYEE.—Noth20 ing in this section shall be deemed to diminish the 

21 rights, privileges, or remedies of any employee under 

22 any Federal or State law, or under any collective 

23 bargaining agreement. 


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1 ‘‘(5) NONENFORCEABILITY OF CERTAIN PROVI2 SIONS WAIVING RIGHTS AND REMEDIES OR REQUIR3 ING ARBITRATION OF DISPUTES.— 

4 ‘‘(A) WAIVER OF RIGHTS AND REM5 EDIES.—The rights and remedies provided for 

6 in this subsection may not be waived by any 

7 agreement, policy form, or condition of employ8 ment, including by a predispute arbitration 

9 agreement. 

10 ‘‘(B) PREDISPUTE ARBITRATION AGREE11 MENTS.—No predispute arbitration agreement 

12 shall be valid or enforceable, if the agreement 

13 requires arbitration of a dispute arising under 

14 this subsection.’’. 

15 (c) EFFECTIVE DATE.— 

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

17 subsection (a) shall apply to disclosures made after 

18 the date of the enactment of this Act. 

19 (2) CIVIL PROTECTION.—The amendment made 

20 by subsection (b) shall take effect on the date of the 

21 enactment of this Act. 

22 SEC. 1406. CUSTOMER SERVICE INFORMATION. 

23 The Secretary of the Treasury (or the Secretary’s 

24 delegate) shall provide helpful information to taxpayers 


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1 placed on hold during a telephone call to any Internal Rev2 enue Service help line, including the following: 

3 (1) Information about common tax scams. 

4 (2) Information on where and how to report tax 

5 scams. 

6 (3) Additional advice on how taxpayers can pro7 tect themselves from identity theft and tax scams. 

8 SEC. 1407. MISDIRECTED TAX REFUND DEPOSITS. 

9 Section 6402 is amended by adding at the end the 

10 following new subsection: 

11 ‘‘(n) MISDIRECTED DIRECT DEPOSIT REFUND.—Not 

12 later than the date which is 6 months after the date of 

13 the enactment of the Taxpayer First Act, the Secretary 

14 shall prescribe regulations to establish procedures to allow 

15 for— 

16 ‘‘(1) taxpayers to report instances in which a 

17 refund made by the Secretary by electronic funds 

18 transfer was not transferred to the account of the 

19 taxpayer; 

20 ‘‘(2) coordination with financial institutions for 

21 the purpose of— 

22 ‘‘(A) identifying the accounts to which 

23 transfers described in paragraph (1) were 

24 made; and 


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1 ‘‘(B) recovery of the amounts so trans2 ferred; and 

3 ‘‘(3) the refund to be delivered to the correct 

4 account of the taxpayer.’’. 

5 TITLE II—21ST CENTURY IRS 

6 Subtitle A—Cybersecurity and 

7 Identity Protection 

8 SEC. 2001. PUBLIC-PRIVATE PARTNERSHIP TO ADDRESS 

9 IDENTITY THEFT REFUND FRAUD. 

10 The Secretary of the Treasury (or the Secretary’s 

11 delegate) shall work collaboratively with the public and 

12 private sectors to protect taxpayers from identity theft re13 fund fraud. 

14 SEC. 2002. RECOMMENDATIONS OF ELECTRONIC TAX AD15 MINISTRATION ADVISORY COMMITTEE RE16 GARDING IDENTITY THEFT REFUND FRAUD. 

17 The Secretary of the Treasury shall ensure that the 

18 advisory group convened by the Secretary pursuant to sec19 tion 2001(b)(2) of the Internal Revenue Service Restruc20 turing and Reform Act of 1998 (commonly known as the 

21 Electronic Tax Administration Advisory Committee) stud22 ies (including by providing organized public forums) and 

23 makes recommendations to the Secretary regarding meth24 ods to prevent identity theft and refund fraud. 


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1 SEC. 2003. INFORMATION SHARING AND ANALYSIS CENTER. 

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

3 the Secretary’s delegate) may participate in an informa4 tion sharing and analysis center to centralize, standardize, 

5 and enhance data compilation and analysis to facilitate 

6 sharing actionable data and information with respect to 

7 identity theft tax refund fraud. 

8 (b) DEVELOPMENT OF PERFORMANCE METRICS.— 

9 The Secretary of the Treasury (or the Secretary’s dele10 gate) shall develop metrics for measuring the success of 

11 such center in detecting and preventing identity theft tax 

12 refund fraud. 

13 (c) DISCLOSURE.— 

14 (1) IN GENERAL.—Section 6103(k), as amend15 ed by this Act, is amended by adding at the end the 

16 following new paragraph: 

17 ‘‘(14) DISCLOSURE OF RETURN INFORMATION

18 FOR PURPOSES OF CYBERSECURITY AND THE PRE19 VENTION OF IDENTITY THEFT TAX REFUND

20 FRAUD.— 

21 ‘‘(A) IN GENERAL.—Under such proce22 dures and subject to such conditions as the Sec23 retary may prescribe, the Secretary may dis24 close specified return information to specified 

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1 ance of effective Federal tax administration re2 lating to the detection or prevention of identity 

3 theft tax refund fraud, validation of taxpayer 

4 identity, authentication of taxpayer returns, or 

5 detection or prevention of cybersecurity threats. 

6 ‘‘(B) SPECIFIED ISAC PARTICIPANTS.—For 

7 purposes of this paragraph— 

8 ‘‘(i) IN GENERAL.—The term ‘speci9 fied ISAC participant’ means— 

10 ‘‘(I) any person designated by 

11 the Secretary as having primary re12 sponsibility for a function performed 

13 with respect to the information shar14 ing and analysis center described in 

15 section 2003(a) of the Taxpayer First 

16 Act, and 

17 ‘‘(II) any person subject to the 

18 requirements of section 7216 and 

19 which is a participant in such infor20 mation sharing and analysis center. 

21 ‘‘(ii) INFORMATION SHARING AGREE22 MENT.—Such term shall not include any 

23 person unless such person has entered into 

24 a written agreement with the Secretary 

25 setting forth the terms and conditions for 


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1 the disclosure of information to such per2 son under this paragraph, including re3 quirements regarding the protection and 

4 safeguarding of such information by such 

5 person. 

6 ‘‘(C) SPECIFIED RETURN INFORMATION.— 

7 For purposes of this paragraph, the term ‘spec8 ified return information’ means— 

9 ‘‘(i) in the case of a return which is 

10 in connection with a case of potential iden11 tity theft refund fraud— 

12 ‘‘(I) in the case of such return 

13 filed electronically, the internet pro14 tocol address, device identification, 

15 email domain name, speed of comple16 tion, method of authentication, refund 

17 method, and such other return infor18 mation related to the electronic filing 

19 characteristics of such return as the 

20 Secretary may identify for purposes of 

21 this subclause, and 

22 ‘‘(II) in the case of such return 

23 prepared by a tax return preparer, 

24 identifying information with respect to 

25 such tax return preparer, including 


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1 the preparer taxpayer identification 

2 number and electronic filer identifica3 tion number of such preparer, 

4 ‘‘(ii) in the case of a return which is 

5 in connection with a case of a identity 

6 theft refund fraud which has been con7 firmed by the Secretary (pursuant to such 

8 procedures as the Secretary may provide), 

9 the information referred to in subclauses 

10 (I) and (II) of clause (i), the name and 

11 taxpayer identification number of the tax12 payer as it appears on the return, and any 

13 bank account and routing information pro14 vided for making a refund in connection 

15 with such return, and 

16 ‘‘(iii) in the case of any cybersecurity 

17 threat to the Internal Revenue Service, in18 formation similar to the information de19 scribed in subclauses (I) and (II) of clause 

20 (i) with respect to such threat. 

21 ‘‘(D) RESTRICTION ON USE OF DISCLOSED

22 INFORMATION.— 

23 ‘‘(i) DESIGNATED THIRD PARTIES.— 

24 Any return information received by a per25 son described in subparagraph (B)(i)(I) 


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1 shall be used only for the purposes of and 

2 to the extent necessary in— 

3 ‘‘(I) performing the function such 

4 person is designated to perform under 

5 such subparagraph, 

6 ‘‘(II) facilitating disclosures au7 thorized under subparagraph (A) to 

8 persons described in subparagraph 

9 (B)(i)(II), and 

10 ‘‘(III) facilitating disclosures au11 thorized under subsection (d) to par12 ticipants in such information sharing 

13 and analysis center. 

14 ‘‘(ii) RETURN PREPARERS.—Any re15 turn information received by a person de16 scribed in subparagraph (B)(i)(II) shall be 

17 treated for purposes of section 7216 as in18 formation furnished to such person for, or 

19 in connection with, the preparation of a re20 turn of the tax imposed under chapter 1. 

21 ‘‘(E) DATA PROTECTION AND SAFE22 GUARDS.—Return information disclosed under 

23 this paragraph shall be subject to such protec24 tions and safeguards as the Secretary may re25 quire in regulations or other guidance or in the 


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1 written agreement referred to in subparagraph 

2 (B)(ii). Such written agreement shall include a 

3 requirement that any unauthorized access to in4 formation disclosed under this paragraph, and 

5 any breach of any system in which such infor6 mation is held, be reported to the Treasury In7 spector General for Tax Administration.’’. 

8 (2) APPLICATION OF CIVIL AND CRIMINAL PEN9 ALTIES.— 

10 (A) Section 6103(a)(3), as amended by 

11 this Act, is amended by striking ‘‘or (13)’’ and 

12 inserting ‘‘, (13), or (14)’’. 

13 (B) Section 7213(a)(2), as amended by 

14 this Act, is amended by striking ‘‘or (13)’’ and 

15 inserting ‘‘, (13), or (14)’’. 

16 SEC. 2004. COMPLIANCE BY CONTRACTORS WITH CON17 FIDENTIALITY SAFEGUARDS. 

18 (a) IN GENERAL.—Section 6103(p) is amended by 

19 adding at the end the following new paragraph: 

20 ‘‘(9) DISCLOSURE TO CONTRACTORS AND

21 OTHER AGENTS.—Notwithstanding any other provi22 sion of this section, no return or return information 

23 shall be disclosed to any contractor or other agent 

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

25 agency, to the satisfaction of the Secretary— 


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1 ‘‘(A) has requirements in effect which re2 quire each such contractor or other agent which 

3 would have access to returns or return informa4 tion to provide safeguards (within the meaning 

5 of paragraph (4)) to protect the confidentiality 

6 of such returns or return information, 

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

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

9 of contracts or agreements of less than 3 years 

10 in duration) of each contractor or other agent 

11 to determine compliance with such require12 ments, 

13 ‘‘(C) submits the findings of the most re14 cent review conducted under subparagraph (B) 

15 to the Secretary as part of the report required 

16 by paragraph (4)(E), and 

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

18 recent annual period that such contractor or 

19 other agent is in compliance with all such re20 quirements. 

21 The certification required by subparagraph (D) shall 

22 include the name and address of each contractor or 

23 other agent, a description of the contract or agree24 ment with such contractor or other agent, and the 

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1 ments of this paragraph shall not apply to disclo2 sures pursuant to subsection (n) for purposes of 

3 Federal tax administration.’’. 

4 (b) CONFORMING AMENDMENT.—Section 

5 6103(p)(8)(B) is amended by inserting ‘‘or paragraph 

6 (9)’’ after ‘‘subparagraph (A)’’. 

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

8 this section shall apply to disclosures made after Decem9 ber 31, 2022. 

10 SEC. 2005. IDENTITY PROTECTION PERSONAL IDENTIFICA11 TION NUMBERS. 

12 (a) IN GENERAL.—Subject to subsection (b), the Sec13 retary of the Treasury or the Secretary’s delegate (here14 after referred to in this section as the ‘‘Secretary’’) shall 

15 establish a program to issue, upon the request of any indi16 vidual, a number which may be used in connection with 

17 such individual’s social security number (or other identi18 fying information with respect to such individual as deter19 mined by the Secretary) to assist the Secretary in 

20 verifying such individual’s identity. 

21 (b) REQUIREMENTS.— 

22 (1) ANNUAL EXPANSION.—For each calendar 

23 year beginning after the date of the enactment of 

24 this Act, the Secretary shall provide numbers 

25 through the program described in subsection (a) to 


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1 individuals residing in such States as the Secretary 

2 deems appropriate, provided that the total number 

3 of States served by such program during such year 

4 is greater than the total number of States served by 

5 such program during the preceding year. 

6 (2) NATIONWIDE AVAILABILITY.—Not later 

7 than 5 years after the date of the enactment of this 

8 Act, the Secretary shall ensure that the program de9 scribed in subsection (a) is made available to any in10 dividual residing in the United States. 

11 SEC. 2006. SINGLE POINT OF CONTACT FOR TAX-RELATED 

12 IDENTITY THEFT VICTIMS. 

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

14 the Secretary’s delegate) shall establish and implement 

15 procedures to ensure that any taxpayer whose return has 

16 been delayed or otherwise adversely affected due to tax17 related identity theft has a single point of contact at the 

18 Internal Revenue Service throughout the processing of the 

19 taxpayer’s case. The single point of contact shall track the 

20 taxpayer’s case to completion and coordinate with other 

21 Internal Revenue Service employees to resolve case issues 

22 as quickly as possible. 

23 (b) SINGLE POINT OF CONTACT.— 


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1 (1) IN GENERAL.—For purposes of subsection 

2 (a), the single point of contact shall consist of a 

3 team or subset of specially trained employees who— 

4 (A) have the ability to work across func5 tions to resolve the issues involved in the tax6 payer’s case; and 

7 (B) shall be accountable for handling the 

8 case until its resolution. 

9 (2) TEAM OR SUBSET.—The employees included 

10 within the team or subset described in paragraph (1) 

11 may change as required to meet the needs of the In12 ternal Revenue Service, provided that procedures 

13 have been established to— 

14 (A) ensure continuity of records and case 

15 history; and 

16 (B) notify the taxpayer when appropriate. 

17 SEC. 2007. NOTIFICATION OF SUSPECTED IDENTITY THEFT. 

18 (a) IN GENERAL.—Chapter 77 is amended by adding 

19 at the end the following new section: 

20 ‘‘SEC. 7529. NOTIFICATION OF SUSPECTED IDENTITY 

21 THEFT. 

22 ‘‘(a) IN GENERAL.—If the Secretary determines that 

23 there has been or may have been an unauthorized use of 

24 the identity of any individual, the Secretary shall, without 


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1 jeopardizing an investigation relating to tax administra2 tion— 

3 ‘‘(1) as soon as practicable— 

4 ‘‘(A) notify the individual of such deter5 mination, 

6 ‘‘(B) provide instructions on how to file a 

7 report with law enforcement regarding the un8 authorized use, 

9 ‘‘(C) identify any steps to be taken by the 

10 individual to permit law enforcement to access 

11 personal information of the individual during 

12 the investigation, 

13 ‘‘(D) provide information regarding actions 

14 the individual may take in order to protect the 

15 individual from harm relating to the unauthor16 ized use, and 

17 ‘‘(E) offer identity protection measures to 

18 the individual, such as the use of an identity 

19 protection personal identification number, and 

20 ‘‘(2) at the time the information described in 

21 paragraph (1) is provided (or, if not available at 

22 such time, as soon as practicable thereafter), issue 

23 additional notifications to such individual (or such 

24 individual’s designee) regarding— 


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1 ‘‘(A) whether an investigation has been ini2 tiated in regards to such unauthorized use, 

3 ‘‘(B) whether the investigation substan4 tiated an unauthorized use of the identity of the 

5 individual, and 

6 ‘‘(C) whether— 

7 ‘‘(i) any action has been taken against 

8 a person relating to such unauthorized use, 

9 or 

10 ‘‘(ii) any referral has been made for 

11 criminal prosecution of such person and, to 

12 the extent such information is available, 

13 whether such person has been criminally 

14 charged by indictment or information. 

15 ‘‘(b) EMPLOYMENT-RELATED IDENTITY THEFT.— 

16 ‘‘(1) IN GENERAL.—For purposes of this sec17 tion, the unauthorized use of the identity of an indi18 vidual includes the unauthorized use of the identity 

19 of the individual to obtain employment. 

20 ‘‘(2) DETERMINATION OF EMPLOYMENT-RE21 LATED IDENTITY THEFT.—For purposes of this sec22 tion, in making a determination as to whether there 

23 has been or may have been an unauthorized use of 

24 the identity of an individual to obtain employment, 

25 the Secretary shall review any information— 


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1 ‘‘(A) obtained from a statement described 

2 in section 6051 or an information return relat3 ing to compensation for services rendered other 

4 than as an employee, or 

5 ‘‘(B) provided to the Internal Revenue 

6 Service by the Social Security Administration 

7 regarding any statement described in section 

8 6051, 

9 which indicates that the social security account num10 ber provided on such statement or information re11 turn does not correspond with the name provided on 

12 such statement or information return or the name 

13 on the tax return reporting the income which is in14 cluded on such statement or information return.’’. 

15 (b) ADDITIONAL MEASURES.— 

16 (1) EXAMINATION OF BOTH PAPER AND ELEC17 TRONIC STATEMENTS AND RETURNS.—The Sec18 retary of the Treasury (or the Secretary’s delegate) 

19 shall examine the statements, information returns, 

20 and tax returns described in section 7529(b)(2) of 

21 the Internal Revenue Code of 1986 (as added by 

22 subsection (a)) for any evidence of employment-re23 lated identity theft, regardless of whether such state24 ments or returns are submitted electronically or on 

25 paper. 


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1 (2) IMPROVEMENT OF EFFECTIVE RETURN

2 PROCESSING PROGRAM WITH SOCIAL SECURITY AD3 MINISTRATION.—Section 232 of the Social Security 

4 Act (42 U.S.C. 432) is amended by inserting after 

5 the third sentence the following: ‘‘For purposes of 

6 carrying out the return processing program de7 scribed in the preceding sentence, the Commissioner 

8 of Social Security shall request, not less than annu9 ally, such information described in section 

10 7529(b)(2) of the Internal Revenue Code of 1986 as 

11 may be necessary to ensure the accuracy of the 

12 records maintained by the Commissioner of Social 

13 Security related to the amounts of wages paid to, 

14 and the amounts of self-employment income derived 

15 by, individuals.’’. 

16 (3) UNDERREPORTING OF INCOME.—The Sec17 retary of the Treasury (or the Secretary’s delegate) 

18 shall establish procedures to ensure that income re19 ported in connection with the unauthorized use of a 

20 taxpayer’s identity is not taken into account in de21 termining any penalty for underreporting of income 

22 by the victim of identity theft. 

23 (c) CLERICAL AMENDMENT.—The table of sections 

24 for chapter 77 is amended by adding at the end the fol25 lowing new item: 

‘‘Sec. 7529. Notification of suspected identity theft.’’. 


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

2 this section shall apply to determinations made after the 

3 date that is 6 months after the date of the enactment of 

4 this Act. 

5 SEC. 2008. GUIDELINES FOR STOLEN IDENTITY REFUND 

6 FRAUD CASES. 

7 (a) IN GENERAL.—Not later than 1 year after the 

8 date of the enactment of this Act, the Secretary of the 

9 Treasury (or the Secretary’s delegate), in consultation 

10 with the National Taxpayer Advocate, shall develop and 

11 implement publicly available guidelines for management of 

12 cases involving stolen identity refund fraud in a manner 

13 that reduces the administrative burden on taxpayers who 

14 are victims of such fraud. 

15 (b) STANDARDS AND PROCEDURES TO BE CONSID16 ERED.—The guidelines described in subsection (a) may in17 clude— 

18 (1) standards for— 

19 (A) the average length of time in which a 

20 case involving stolen identity refund fraud 

21 should be resolved; 

22 (B) the maximum length of time, on aver23 age, a taxpayer who is a victim of stolen iden24 tity refund fraud and is entitled to a tax refund 


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1 which has been stolen should have to wait to re2 ceive such refund; and 

3 (C) the maximum number of offices and 

4 employees within the Internal Revenue Service 

5 with whom a taxpayer who is a victim of stolen 

6 identity refund fraud should be required to 

7 interact in order to resolve a case; 

8 (2) standards for opening, assigning, reas9 signing, or closing a case involving stolen identity re10 fund fraud; and 

11 (3) procedures for implementing and accom12 plishing the standards described in paragraphs (1) 

13 and (2), and measures for evaluating such proce14 dures and determining whether such standards have 

15 been successfully implemented. 

16 SEC. 2009. INCREASED PENALTY FOR IMPROPER DISCLO17 SURE OR USE OF INFORMATION BY PRE18 PARERS OF RETURNS. 

19 (a) IN GENERAL.—Section 6713 is amended— 

20 (1) by redesignating subsections (b) and (c) as 

21 subsections (c) and (d), respectively; and 

22 (2) by inserting after subsection (a) the fol23 lowing new subsection: 

24 ‘‘(b) ENHANCED PENALTY FOR IMPROPER USE OR

25 DISCLOSURE RELATING TO IDENTITY THEFT.— 


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1 ‘‘(1) IN GENERAL.—In the case of a disclosure 

2 or use described in subsection (a) that is made in 

3 connection with a crime relating to the misappro4 priation of another person’s taxpayer identity (as de5 fined in section 6103(b)(6)), whether or not such 

6 crime involves any tax filing, subsection (a) shall be 

7 applied— 

8 ‘‘(A) by substituting ‘$1,000’ for ‘$250’, 

9 and 

10 ‘‘(B) by substituting ‘$50,000’ for 

11 ‘$10,000’. 

12 ‘‘(2) SEPARATE APPLICATION OF TOTAL PEN13 ALTY LIMITATION.—The limitation on the total 

14 amount of the penalty under subsection (a) shall be 

15 applied separately with respect to disclosures or uses 

16 to which this subsection applies and to which it does 

17 not apply.’’. 

18 (b) CRIMINAL PENALTY.—Section 7216(a) is amend19 ed by striking ‘‘$1,000’’ and inserting ‘‘$1,000 ($100,000 

20 in the case of a disclosure or use to which section 6713(b) 

21 applies)’’. 

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

23 this section shall apply to disclosures or uses on or after 

24 the date of the enactment of this Act. 


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1 Subtitle B—Development of 

2 Information Technology 

3 SEC. 2101. MANAGEMENT OF INTERNAL REVENUE SERVICE 

4 INFORMATION TECHNOLOGY. 

5 (a) DUTIES AND RESPONSIBILITIES OF INTERNAL

6 REVENUE SERVICE CHIEF INFORMATION OFFICER.—Sec7 tion 7803, as amended by section 1001, is amended by 

8 adding at the end the following new subsection: 

9 ‘‘(f) INTERNAL REVENUE SERVICE CHIEF INFORMA10 TION OFFICER.— 

11 ‘‘(1) IN GENERAL.—There shall be in the Inter12 nal Revenue Service an Internal Revenue Service 

13 Chief Information Officer (hereafter referred to in 

14 this subsection as the ‘IRS CIO’) who shall be ap15 pointed by the Commissioner of Internal Revenue. 

16 ‘‘(2) CENTRALIZED RESPONSIBILITY FOR IN17 TERNAL REVENUE SERVICE INFORMATION TECH18 NOLOGY.—The Commissioner of Internal Revenue 

19 (and the Secretary) shall act through the IRS CIO 

20 with respect to all development, implementation, and 

21 maintenance of information technology for the Inter22 nal Revenue Service. Any reference in this sub23 section to the IRS CIO which directs the IRS CIO 

24 to take any action, or to assume any responsibility, 


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1 shall be treated as a reference to the Commissioner 

2 of Internal Revenue acting through the IRS CIO. 

3 ‘‘(3) GENERAL DUTIES AND RESPONSIBIL4 ITIES.—The IRS CIO shall— 

5 ‘‘(A) be responsible for the development, 

6 implementation, and maintenance of informa7 tion technology for the Internal Revenue Serv8 ice, 

9 ‘‘(B) ensure that the information tech10 nology of the Internal Revenue Service is secure 

11 and integrated, 

12 ‘‘(C) maintain operational control of all in13 formation technology for the Internal Revenue 

14 Service, 

15 ‘‘(D) be the principal advocate for the in16 formation technology needs of the Internal Rev17 enue Service, and 

18 ‘‘(E) consult with the Chief Procurement 

19 Officer of the Internal Revenue Service to en20 sure that the information technology acquired 

21 for the Internal Revenue Service is consistent 

22 with— 

23 ‘‘(i) the goals and requirements speci24 fied in subparagraphs (A) through (D), 

25 and 


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1 ‘‘(ii) the strategic plan developed 

2 under paragraph (4). 

3 ‘‘(4) STRATEGIC PLAN.— 

4 ‘‘(A) IN GENERAL.—The IRS CIO shall 

5 develop and implement a multiyear strategic 

6 plan for the information technology needs of the 

7 Internal Revenue Service. Such plan shall— 

8 ‘‘(i) include performance measure9 ments of such technology and of the imple10 mentation of such plan, 

11 ‘‘(ii) include a plan for an integrated 

12 enterprise architecture of the information 

13 technology of the Internal Revenue Service, 

14 ‘‘(iii) include and take into account 

15 the resources needed to accomplish such 

16 plan, 

17 ‘‘(iv) take into account planned major 

18 acquisitions of information technology by 

19 the Internal Revenue Service, and 

20 ‘‘(v) align with the needs and stra21 tegic plan of the Internal Revenue Service. 

22 ‘‘(B) PLAN UPDATES.—The IRS CIO 

23 shall, not less frequently than annually, review 

24 and update the strategic plan under subpara25 graph (A) (including the plan for an integrated 


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1 enterprise architecture described in subpara2 graph (A)(ii)) to take into account the develop3 ment of new information technology and the 

4 needs of the Internal Revenue Service. 

5 ‘‘(5) SCOPE OF AUTHORITY.— 

6 ‘‘(A) INFORMATION TECHNOLOGY.—For 

7 purposes of this subsection, the term ‘informa8 tion technology’ has the meaning given such 

9 term by section 11101 of title 40, United States 

10 Code. 

11 ‘‘(B) INTERNAL REVENUE SERVICE.—Any 

12 reference in this subsection to the Internal Rev13 enue Service includes a reference to all compo14 nents of the Internal Revenue Service, includ15 ing— 

16 ‘‘(i) the Office of the Taxpayer Advo17 cate, 

18 ‘‘(ii) the Criminal Investigation Divi19 sion of the Internal Revenue Service, and 

20 ‘‘(iii) except as otherwise provided by 

21 the Secretary with respect to information 

22 technology related to matters described in 

23 subsection (b)(3)(B), the Office of the 

24 Chief Counsel.’’. 


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1 (b) INDEPENDENT VERIFICATION AND VALIDATION

2 OF THE CUSTOMER ACCOUNT DATA ENGINE 2 AND EN3 TERPRISE CASE MANAGEMENT SYSTEM.— 

4 (1) IN GENERAL.—The Commissioner of Inter5 nal Revenue shall enter into a contract with an inde6 pendent reviewer to verify and validate the imple7 mentation plans (including the performance mile8 stones and cost estimates included in such plans) de9 veloped for the Customer Account Data Engine 2 

10 and the Enterprise Case Management System. 

11 (2) DEADLINE FOR COMPLETION.—Such con12 tract shall require that such verification and valida13 tion be completed not later than the date which is 

14 1 year after the date of the enactment of this Act. 

15 (3) APPLICATION TO PHASES OF CADE 2.— 

16 (A) IN GENERAL.—Paragraphs (1) and (2) 

17 shall not apply to phase 1 of the Customer Ac18 count Data Engine 2 and shall apply separately 

19 to each other phase. 

20 (B) DEADLINE FOR COMPLETING

21 PLANS.—Not later than 1 year after the date of 

22 the enactment of this Act, the Commissioner of 

23 Internal Revenue shall complete the develop24 ment of plans for all phases of the Customer 

25 Account Data Engine 2. 


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1 (C) DEADLINE FOR COMPLETION OF

2 VERIFICATION AND VALIDATION OF PLANS.—In 

3 the case of any phase after phase 2 of the Cus4 tomer Account Data Engine 2, paragraph (2) 

5 shall be applied by substituting ‘‘the date on 

6 which the plan for such phase was completed’’ 

7 for ‘‘the date of the enactment of this Act’’. 

8 (c) COORDINATION OF IRS CIO AND CHIEF PRO9 CUREMENT OFFICER OF THE INTERNAL REVENUE SERV10 ICE.— 

11 (1) IN GENERAL.—The Chief Procurement Offi12 cer of the Internal Revenue Service shall— 

13 (A) identify all significant IRS information 

14 technology acquisitions and provide written no15 tification to the Internal Revenue Service Chief 

16 Information Officer (hereafter referred to in 

17 this subsection as the ‘‘IRS CIO’’) of each such 

18 acquisition in advance of such acquisition, and 

19 (B) regularly consult with the IRS CIO re20 garding acquisitions of information technology 

21 for the Internal Revenue Service, including 

22 meeting with the IRS CIO regarding such ac23 quisitions upon request. 

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1 section, the term ‘‘significant IRS information tech2 nology acquisitions’’ means— 

3 (A) any acquisition of information tech4 nology for the Internal Revenue Service in ex5 cess of $1 million; and 

6 (B) such other acquisitions of information 

7 technology for the Internal Revenue Service (or 

8 categories of such acquisitions) as the IRS CIO, 

9 in consultation with the Chief Procurement Of10 ficer of the Internal Revenue Service, may iden11 tify. 

12 (3) SCOPE.—Terms used in this subsection 

13 which are also used in section 7803(f) of the Inter14 nal Revenue Code of 1986 (as added by subsection 

15 (a)) shall have the same meaning as when used in 

16 such section. 

17 SEC. 2102. INTERNET PLATFORM FOR FORM 1099 FILINGS. 

18 (a) IN GENERAL.—Not later than January 1, 2023, 

19 the Secretary of the Treasury or the Secretary’s delegate 

20 (hereafter referred to in this section as the ‘‘Secretary’’) 

21 shall make available an internet website or other electronic 

22 media, with a user interface and functionality similar to 

23 the Business Services Online Suite of Services provided 

24 by the Social Security Administration, that provides access 


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1 to resources and guidance provided by the Internal Rev2 enue Service and allows persons to— 

3 (1) prepare and file Forms 1099; 

4 (2) prepare Forms 1099 for distribution to re5 cipients other than the Internal Revenue Service; 

6 and 

7 (3) maintain a record of completed, filed, and 

8 distributed Forms 1099. 

9 (b) ELECTRONIC SERVICES TREATED AS SUPPLE10 MENTAL; APPLICATION OF SECURITY STANDARDS.—The 

11 Secretary shall ensure that the services described in sub12 section (a)— 

13 (1) are a supplement to, and not a replacement 

14 for, other services provided by the Internal Revenue 

15 Service to taxpayers; and 

16 (2) comply with applicable security standards 

17 and guidelines. 

18 SEC. 2103. STREAMLINED CRITICAL PAY AUTHORITY FOR 

19 INFORMATION TECHNOLOGY POSITIONS. 

20 (a) IN GENERAL.—Subchapter A of chapter 80 is 

21 amended by adding at the end the following new section: 


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1 ‘‘SEC. 7812. STREAMLINED CRITICAL PAY AUTHORITY FOR 

2 INFORMATION TECHNOLOGY POSITIONS. 

3 ‘‘In the case of any position which is critical to the 

4 functionality of the information technology operations of 

5 the Internal Revenue Service— 

6 ‘‘(1) section 9503 of title 5, United States 

7 Code, shall be applied— 

8 ‘‘(A) by substituting ‘during the period be9 ginning on the date of the enactment of section 

10 7812 of the Internal Revenue Code of 1986, 

11 and ending on September 30, 2025’ for ‘Before 

12 September 30, 2013 in subsection (a)’, 

13 ‘‘(B) without regard to subparagraph (B) 

14 of subsection (a)(1), and 

15 ‘‘(C) by substituting ‘the date of the enact16 ment of the Taxpayer First Act’ for ‘June 1, 

17 1998’ in subsection (a)(6), 

18 ‘‘(2) section 9504 of such title 5 shall be ap19 plied by substituting ‘During the period beginning 

20 on the date of the enactment of section 7812 of the 

21 Internal Revenue Code of 1986, and ending on Sep22 tember 30, 2025’ for ‘Before September 30, 2013’ 

23 each place it appears in subsections (a) and (b), and 

24 ‘‘(3) section 9505 of such title shall be ap25 plied— 


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1 ‘‘(A) by substituting ‘During the period be2 ginning on the date of the enactment of section 

3 7812 of the Internal Revenue Code of 1986, 

4 and ending on September 30, 2025’ for ‘Before 

5 September 30, 2013’ in subsection (a), and 

6 ‘‘(B) by substituting ‘the information tech7 nology operations’ for ‘significant functions’ in 

8 subsection (a).’’. 

9 (b) CLERICAL AMENDMENT.—The table of sections 

10 for subchapter A of chapter 80 is amended by adding at 

11 the end the following new item: 

‘‘Sec. 7812. Streamlined critical pay authority for information technology positions.’’. 

12 Subtitle C—Modernization of Con13 sent-Based Income Verification 

14 System 

15 SEC. 2201. DISCLOSURE OF TAXPAYER INFORMATION FOR 

16 THIRD-PARTY INCOME VERIFICATION. 

17 (a) IN GENERAL.—Not later than 1 year after the 

18 close of the 2-year period described in subsection (d)(1), 

19 the Secretary of the Treasury or the Secretary’s delegate 

20 (hereafter referred to in this section as the ‘‘Secretary’’) 

21 shall implement a program to ensure that any qualified 

22 disclosure— 

23 (1) is fully automated and accomplished 

24 through the internet; and 


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1 (2) is accomplished in as close to real-time as 

2 is practicable. 

3 (b) QUALIFIED DISCLOSURE.—For purposes of this 

4 section, the term ‘‘qualified disclosure’’ means a disclosure 

5 under section 6103(c) of the Internal Revenue Code of 

6 1986 of returns or return information by the Secretary 

7 to a person seeking to verify the income or creditworthi8 ness of a taxpayer who is a borrower in the process of 

9 a loan application. 

10 (c) APPLICATION OF SECURITY STANDARDS.—The 

11 Secretary shall ensure that the program described in sub12 section (a) complies with applicable security standards and 

13 guidelines. 

14 (d) USER FEE.— 

15 (1) IN GENERAL.—During the 2-year period be16 ginning on the first day of the sixth calendar month 

17 beginning after the date of the enactment of this 

18 Act, the Secretary shall assess and collect a fee for 

19 qualified disclosures (in addition to any other fee as20 sessed and collected for such disclosures) at such 

21 rates as the Secretary determines are sufficient to 

22 cover the costs related to implementing the program 

23 described in subsection (a), including the costs of 

24 any necessary infrastructure or technology. 


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1 (2) DEPOSIT OF COLLECTIONS.—Amounts re2 ceived from fees assessed and collected under para3 graph (1) shall be deposited in, and credited to, an 

4 account solely for the purpose of carrying out the 

5 activities described in subsection (a). Such amounts 

6 shall be available to carry out such activities without 

7 need of further appropriation and without fiscal year 

8 limitation. 

9 SEC. 2202. LIMIT REDISCLOSURES AND USES OF CONSENT10 BASED DISCLOSURES OF TAX RETURN INFOR11 MATION. 

12 (a) IN GENERAL.—Section 6103(c) is amended by 

13 adding at the end the following: ‘‘Persons designated by 

14 the taxpayer under this subsection to receive return infor15 mation shall not use the information for any purpose other 

16 than the express purpose for which consent was granted 

17 and shall not disclose return information to any other per18 son without the express permission of, or request by, the 

19 taxpayer.’’. 

20 (b) APPLICATION OF PENALTIES.—Section 

21 6103(a)(3) is amended by inserting ‘‘subsection (c),’’ after 

22 ‘‘return information under’’. 

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

24 this section shall apply to disclosures made after the date 


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1 which is 180 days after the date of the enactment of this 

2 Act. 

3 Subtitle D—Expanded Use of 

4 Electronic Systems 

5 SEC. 2301. ELECTRONIC FILING OF RETURNS. 

6 (a) IN GENERAL.—Section 6011(e)(2)(A) is amended 

7 by striking ‘‘250’’ and inserting ‘‘the applicable number 

8 of’’. 

9 (b) APPLICABLE NUMBER.—Section 6011(e) is 

10 amended by striking paragraph (5) and inserting the fol11 lowing new paragraphs: 

12 ‘‘(5) APPLICABLE NUMBER.— 

13 ‘‘(A) IN GENERAL.—For purposes of para14 graph (2)(A), the applicable number shall be— 

15 ‘‘(i) except as provided in subpara16 graph (B), in the case of calendar years 

17 before 2021, 250, 

18 ‘‘(ii) in the case of calendar year 

19 2021, 100, and 

20 ‘‘(iii) in the case of calendar years 

21 after 2021, 10. 

22 ‘‘(B) SPECIAL RULE FOR PARTNERSHIPS

23 FOR 2018, 2019, 2020, AND 2021.—In the case of 

24 a partnership, for any calendar year before 

25 2022, the applicable number shall be— 


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1 ‘‘(i) in the case of calendar year 2018, 

2 200, 

3 ‘‘(ii) in the case of calendar year 

4 2019, 150, 

5 ‘‘(iii) in the case of calendar year 

6 2020, 100, and 

7 ‘‘(iv) in the case of calendar year 

8 2021, 50. 

9 ‘‘(6) PARTNERSHIPS REQUIRED TO FILE ON

10 MAGNETIC MEDIA.—Notwithstanding paragraph 

11 (2)(A), the Secretary shall require partnerships hav12 ing more than 100 partners to file returns on mag13 netic media.’’. 

14 (c) RETURNS FILED BY A TAX RETURN PRE15 PARER.—Section 6011(e)(3) is amended by adding at the 

16 end the following new subparagraph: 

17 ‘‘(D) EXCEPTION FOR CERTAIN PRE18 PARERS LOCATED IN AREAS WITHOUT INTER19 NET ACCESS.—The Secretary may waive the re20 quirement of subparagraph (A) if the Secretary 

21 determines, on the basis of an application by 

22 the tax return preparer, that the preparer can23 not meet such requirement by reason of being 

24 located in a geographic area which does not 


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1 have access to internet service (other than dial2 up or satellite service).’’. 

3 (d) CONFORMING AMENDMENT.—Section 6724(c) is 

4 amended by striking ‘‘250 information returns (more than 

5 100 information returns in the case of a partnership hav6 ing more than 100 partners)’’ and inserting ‘‘the applica7 ble number (determined under section 6011(e)(5) with re8 spect to the calendar year to which such returns relate) 

9 of information returns’’. 

10 (e) EFFECTIVE DATE.—The amendments made by 

11 this section shall take effect on the date of the enactment 

12 of this Act. 

13 SEC. 2302. UNIFORM STANDARDS FOR THE USE OF ELEC14 TRONIC SIGNATURES FOR DISCLOSURE AU15 THORIZATIONS TO, AND OTHER AUTHORIZA16 TIONS OF, PRACTITIONERS. 

17 Section 6061(b)(3) is amended to read as follows: 

18 ‘‘(3) PUBLISHED GUIDANCE.— 

19 ‘‘(A) IN GENERAL.—The Secretary shall 

20 publish guidance as appropriate to define and 

21 implement any waiver of the signature require22 ments or any method adopted under paragraph 

23 (1). 

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1 THORIZATIONS OF, PRACTITIONERS.—Not later 

2 than 6 months after the date of the enactment 

3 of this subparagraph, the Secretary shall pub4 lish guidance to establish uniform standards 

5 and procedures for the acceptance of taxpayers’ 

6 signatures appearing in electronic form with re7 spect to any request for disclosure of a tax8 payer’s return or return information under sec9 tion 6103(c) to a practitioner or any power of 

10 attorney granted by a taxpayer to a practi11 tioner. 

12 ‘‘(C) PRACTITIONER.—For purposes of 

13 subparagraph (B), the term ‘practitioner’ 

14 means any individual in good standing who is 

15 regulated under section 330 of title 31, United 

16 States Code.’’. 

17 SEC. 2303. PAYMENT OF TAXES BY DEBIT AND CREDIT 

18 CARDS. 

19 Section 6311(d)(2) is amended by adding at the end 

20 the following: ‘‘The preceding sentence shall not apply to 

21 the extent that the Secretary ensures that any such fee 

22 or other consideration is fully recouped by the Secretary 

23 in the form of fees paid to the Secretary by persons paying 

24 taxes imposed under subtitle A with credit, debit, or 

25 charge cards pursuant to such contract. Notwithstanding 


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1 the preceding sentence, the Secretary shall seek to mini2 mize the amount of any fee or other consideration that 

3 the Secretary pays under any such contract.’’. 

4 SEC. 2304. AUTHENTICATION OF USERS OF ELECTRONIC 

5 SERVICES ACCOUNTS. 

6 Beginning 180 days after the date of the enactment 

7 of this Act, the Secretary of the Treasury (or the Sec8 retary’s delegate) shall verify the identity of any individual 

9 opening an e-Services account with the Internal Revenue 

10 Service before such individual is able to use the e-Services 

11 tools. 

12 Subtitle E—Other Provisions 

13 SEC. 2401. REPEAL OF PROVISION REGARDING CERTAIN 

14 TAX COMPLIANCE PROCEDURES AND RE15 PORTS. 

16 Section 2004 of the Internal Revenue Service Re17 structuring and Reform Act of 1998 (26 U.S.C. 6012 

18 note) is repealed. 

19 SEC. 2402. COMPREHENSIVE TRAINING STRATEGY. 

20 Not later than 1 year after the date of the enactment 

21 of this Act, the Commissioner of Internal Revenue shall 

22 submit to Congress a written report providing a com23 prehensive training strategy for employees of the Internal 

24 Revenue Service, including— 


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1 (1) a plan to streamline current training proc2 esses, including an assessment of the utility of fur3 ther consolidating internal training programs, tech4 nology, and funding; 

5 (2) a plan to develop annual training regarding 

6 taxpayer rights, including the role of the Office of 

7 the Taxpayer Advocate, for employees that interface 

8 with taxpayers and the direct managers of such em9 ployees; 

10 (3) a plan to improve technology-based training; 

11 (4) proposals to— 

12 (A) focus employee training on early, fair, 

13 and efficient resolution of taxpayer disputes for 

14 employees that interface with taxpayers and the 

15 direct managers of such employees; and 

16 (B) ensure consistency of skill development 

17 and employee evaluation throughout the Inter18 nal Revenue Service; and 

19 (5) a thorough assessment of the funding nec20 essary to implement such strategy. 


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1 TITLE III—MISCELLANEOUS 

2 PROVISIONS 

3 Subtitle A—Reform of Laws Gov4 erning Internal Revenue Serv5 ice Employees 

6 SEC. 3001. PROHIBITION ON REHIRING ANY EMPLOYEE OF 

7 THE INTERNAL REVENUE SERVICE WHO WAS 

8 INVOLUNTARILY SEPARATED FROM SERVICE 

9 FOR MISCONDUCT. 

10 (a) IN GENERAL.—Section 7804 is amended by add11 ing at the end the following new subsection: 

12 ‘‘(d) PROHIBITION ON REHIRING EMPLOYEES INVOL13 UNTARILY SEPARATED.—The Commissioner may not hire 

14 any individual previously employed by the Commissioner 

15 who was removed for misconduct under this subchapter 

16 or chapter 43 or chapter 75 of title 5, United States Code, 

17 or whose employment was terminated under section 1203 

18 of the Internal Revenue Service Restructuring and Reform 

19 Act of 1998 (26 U.S.C. 7804 note).’’. 

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

21 subsection (a) shall apply with respect to the hiring of em22 ployees after the date of the enactment of this Act. 


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1 SEC. 3002. NOTIFICATION OF UNAUTHORIZED INSPECTION 

2 OR DISCLOSURE OF RETURNS AND RETURN 

3 INFORMATION. 

4 (a) IN GENERAL.—Subsection (e) of section 7431 is 

5 amended by adding at the end the following new sen6 tences: ‘‘The Secretary shall also notify such taxpayer if 

7 the Internal Revenue Service or a Federal or State agency 

8 (upon notice to the Secretary by such Federal or State 

9 agency) proposes an administrative determination as to 

10 disciplinary or adverse action against an employee arising 

11 from the employee’s unauthorized inspection or disclosure 

12 of the taxpayer’s return or return information. The notice 

13 described in this subsection shall include the date of the 

14 unauthorized inspection or disclosure and the rights of the 

15 taxpayer under such administrative determination.’’. 

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

17 this section shall apply to determinations proposed after 

18 the date which is 180 days after the date of the enactment 

19 of this Act. 

20 Subtitle B—Provisions Relating to 

21 Exempt Organizations 

22 SEC. 3101. MANDATORY E-FILING BY EXEMPT ORGANIZA23 TIONS. 

24 (a) IN GENERAL.—Section 6033 is amended by re25 designating subsection (n) as subsection (o) and by insert26 ing after subsection (m) the following new subsection: 


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1 ‘‘(n) MANDATORY ELECTRONIC FILING.—Any orga2 nization required to file a return under this section shall 

3 file such return in electronic form.’’. 

4 (b) OTHER REPORTS AND RETURNS.— 

5 (1) POLITICAL ORGANIZATIONS.—Section 

6 527(j)(7) is amended by striking ‘‘if the organization 

7 has’’ and all that follows through ‘‘such calendar 

8 year’’. 

9 (2) UNRELATED BUSINESS INCOME TAX RE10 TURNS.—Section 6011 is amended by redesignating 

11 subsection (h) as subsection (i) and by inserting 

12 after subsection (g) the following new subsection: 

13 ‘‘(h) MANDATORY E-FILING OF UNRELATED BUSI14 NESS INCOME TAX RETURN.—Any organization required 

15 to file an annual return under this section which relates 

16 to any tax imposed by section 511 shall file such return 

17 in electronic form.’’. 

18 (c) INSPECTION OF ELECTRONICALLY FILED AN19 NUAL RETURNS.—Section 6104(b) is amended by adding 

20 at the end the following: ‘‘Any annual return required to 

21 be filed electronically under section 6033(n) shall be made 

22 available by the Secretary to the public as soon as prac23 ticable in a machine readable format.’’. 

24 (d) EFFECTIVE DATE.— 


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1 (1) IN GENERAL.—Except as provided in para2 graph (2), the amendments made by this section 

3 shall apply to taxable years beginning after the date 

4 of the enactment of this Act. 

5 (2) TRANSITIONAL RELIEF.— 

6 (A) SMALL ORGANIZATIONS.— 

7 (i) IN GENERAL.—In the case of any 

8 small organizations, or any other organiza9 tions for which the Secretary of the Treas10 ury or the Secretary’s delegate (hereafter 

11 referred to in this paragraph as the ‘‘Sec12 retary’’) determines the application of the 

13 amendments made by this section would 

14 cause undue burden without a delay, the 

15 Secretary may delay the application of 

16 such amendments, but such delay shall not 

17 apply to any taxable year beginning on or 

18 after the date that is 2 years after the en19 actment of this Act. 

20 (ii) SMALL ORGANIZATION.—For pur21 poses of clause (i), the term ‘‘small organi22 zation’’ means any organization— 

23 (I) the gross receipts of which for 

24 the taxable year are less than 

25 $200,000; and 


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1 (II) the aggregate gross assets of 

2 which at the end of the taxable year 

3 are less than $500,000. 

4 (B) ORGANIZATIONS FILING FORM 990– 

5 T.—In the case of any organization described in 

6 section 511(a)(2) of the Internal Revenue Code 

7 of 1986 which is subject to the tax imposed by 

8 section 511(a)(1) of such Code on its unrelated 

9 business taxable income, or any organization re10 quired to file a return under section 6033 of 

11 such Code and include information under sub12 section (e) thereof, the Secretary may delay the 

13 application of the amendments made by this 

14 section, but such delay shall not apply to any 

15 taxable year beginning on or after the date that 

16 is 2 years after the enactment of this Act. 

17 SEC. 3102. NOTICE REQUIRED BEFORE REVOCATION OF 

18 TAX-EXEMPT STATUS FOR FAILURE TO FILE 

19 RETURN. 

20 (a) IN GENERAL.—Section 6033(j)(1) is amended by 

21 striking ‘‘If an organization’’ and inserting the following: 

22 ‘‘(A) NOTICE.—If an organization de23 scribed in subsection (a)(1) or (i) fails to file 

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1 ther subsection for 2 consecutive years, the Sec2 retary shall notify the organization— 

3 ‘‘(i) that the Internal Revenue Service 

4 has no record of such a return or notice 

5 from such organization for 2 consecutive 

6 years, and 

7 ‘‘(ii) about the revocation that will 

8 occur under subparagraph (B) if the orga9 nization fails to file such a return or notice 

10 by the due date for the next such return 

11 or notice required to be filed. 

12 The notification under the preceding sentence 

13 shall include information about how to comply 

14 with the filing requirements under subsections 

15 (a)(1) and (i). 

16 ‘‘(B) REVOCATION.—If an organization’’. 

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

18 this section shall apply to failures to file returns or notices 

19 for 2 consecutive years if the return or notice for the sec20 ond year is required to be filed after December 31, 2019. 

21 Subtitle C—Revenue Provision 

22 SEC. 3201. INCREASE IN PENALTY FOR FAILURE TO FILE. 

23 (a) IN GENERAL.—The second sentence of subsection 

24 (a) of section 6651 is amended by striking ‘‘$205’’ and 

25 inserting ‘‘$330’’. 


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1 (b) INFLATION ADJUSTMENT.—Section 6651(j)(1) is 

2 amended— 

3 (1) by striking ‘‘2014’’ and inserting ‘‘2020’’, 

4 (2) by striking ‘‘$205’’ and inserting ‘‘$330’’, 

5 and 

6 (3) by striking ‘‘2013’’ and inserting ‘‘2019’’. 

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

8 this section shall apply to returns required to be filed after 

9 December 31, 2019. 

10 TITLE IV—BUDGETARY EFFECTS 

11 SEC. 4001. DETERMINATION OF BUDGETARY EFFECTS. 

12 The budgetary effects of this Act, for the purpose of 

13 complying with the Statutory Pay-As-You-Go Act of 2010, 

14 shall be determined by reference to the latest statement 

15 titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 

16 Act, submitted for printing in the Congressional Record 

17 by the Chairman of the House Budget Committee, pro18 vided that such statement has been submitted prior to the 

19 vote on passage. 

Passed the House of Representatives June 10, 2019. 

Attest: CHERYL L. JOHNSON, 

Clerk. 


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