H. R. 3151 

One Hundred Sixteenth Congress 

of the 

United States of America 

AT THE FIRST SESSION 

Begun and held at the City of Washington on Thursday, 

the third day of January, two thousand and nineteen 

An Act 

To amend the Internal Revenue Code of 1986 to modernize and improve the Internal 

Revenue Service, and for other purposes. 

Be it enacted by the Senate and House of Representatives of 

the United States of America in Congress assembled, 

SECTION 1. SHORT TITLE; ETC. 

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

First Act’’. 

(b) AMENDMENT OF 1986 CODE.—Except as otherwise expressly 

provided, whenever in this Act an amendment or repeal is expressed 

in terms of an amendment to, or repeal of, a section or other 

provision, the reference shall be considered to be made to a section 

or other provision of the Internal Revenue Code of 1986. 

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

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. 
H. R. 3151—2 

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 

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. 
H. R. 3151—3 

TITLE I—PUTTING TAXPAYERS FIRST 

Subtitle A—Independent Appeals Process 

SEC. 1001. ESTABLISHMENT OF INTERNAL REVENUE SERVICE INDEPENDENT OFFICE OF APPEALS. 

(a) IN GENERAL.—Section 7803 is amended by adding at the 

end the following new subsection: 

‘‘(e) INDEPENDENT OFFICE OF APPEALS.— 

‘‘(1) ESTABLISHMENT.—There is established in the Internal 

Revenue Service an office to be known as the ‘Internal Revenue 

Service Independent Office of Appeals’. 

‘‘(2) CHIEF OF APPEALS.— 

‘‘(A) IN GENERAL.—The Internal Revenue Service Independent Office of Appeals shall be under the supervision 

and direction of an official to be known as the ‘Chief of 

Appeals’. The Chief of Appeals shall report directly to the 

Commissioner of Internal Revenue and shall be entitled 

to compensation at the same rate as the highest rate of 

basic pay established for the Senior Executive Service 

under section 5382 of title 5, United States Code. 

‘‘(B) APPOINTMENT.—The Chief of Appeals shall be 

appointed by the Commissioner of Internal Revenue without regard to the provisions of title 5, United States Code, 

relating to appointments in the competitive service or the 

Senior Executive Service. 

‘‘(C) QUALIFICATIONS.—An individual appointed under 

subparagraph (B) shall have experience and expertise in— 

‘‘(i) administration of, and compliance with, Federal tax laws, 

‘‘(ii) a broad range of compliance cases, and 

‘‘(iii) management of large service organizations. 

‘‘(3) PURPOSES AND DUTIES OF OFFICE.—It shall be the 

function of the Internal Revenue Service Independent Office 

of Appeals to resolve Federal tax controversies without litigation on a basis which— 

‘‘(A) is fair and impartial to both the Government and 

the taxpayer, 

‘‘(B) promotes a consistent application and interpretation of, and voluntary compliance with, the Federal tax 

laws, and 

‘‘(C) enhances public confidence in the integrity and 

efficiency of the Internal Revenue Service. 

‘‘(4) RIGHT OF APPEAL.—The resolution process described 

in paragraph (3) shall be generally available to all taxpayers. 

‘‘(5) LIMITATION ON DESIGNATION OF CASES AS NOT ELIGIBLE

FOR REFERRAL TO INDEPENDENT OFFICE OF APPEALS.— 

‘‘(A) IN GENERAL.—If any taxpayer which is in receipt 

of a notice of deficiency authorized under section 6212 

requests referral to the Internal Revenue Service Independent Office of Appeals and such request is denied, the 

Commissioner of Internal Revenue shall provide such taxpayer a written notice which— 

‘‘(i) provides a detailed description of the facts 

involved, the basis for the decision to deny the request, 
H. R. 3151—4 

and a detailed explanation of how the basis of such 

decision applies to such facts, and 

‘‘(ii) describes the procedures prescribed under 

subparagraph (C) for protesting the decision to deny 

the request. 

‘‘(B) REPORT TO CONGRESS.—The Commissioner of 

Internal Revenue shall submit a written report to Congress 

on an annual basis which includes the number of requests 

described in subparagraph (A) which were denied and the 

reasons (described by category) that such requests were 

denied. 

‘‘(C) PROCEDURES FOR PROTESTING DENIAL OF

REQUEST.—The Commissioner of Internal Revenue shall 

prescribe procedures for protesting to the Commissioner 

of Internal Revenue a denial of a request described in 

subparagraph (A). 

‘‘(D) NOT APPLICABLE TO FRIVOLOUS POSITIONS.—This 

paragraph shall not apply to a request for referral to the 

Internal Revenue Service Independent Office of Appeals 

which is denied on the basis that the issue involved is 

a frivolous position (within the meaning of section 6702(c)). 

‘‘(6) STAFF.— 

‘‘(A) IN GENERAL.—All personnel in the Internal Revenue Service Independent Office of Appeals shall report 

to the Chief of Appeals. 

‘‘(B) ACCESS TO STAFF OF OFFICE OF THE CHIEF

COUNSEL.—The Chief of Appeals shall have authority to 

obtain legal assistance and advice from the staff of the 

Office of the Chief Counsel. The Chief Counsel shall ensure, 

to the extent practicable, that such assistance and advice 

is provided by staff of the Office of the Chief Counsel 

who were not involved in the case with respect to which 

such assistance and advice is sought and who are not 

involved in preparing such case for litigation. 

‘‘(7) ACCESS TO CASE FILES.— 

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

with the Internal Revenue Service Independent Office of 

Appeals has been scheduled upon request of a specified 

taxpayer, the Chief of Appeals shall ensure that such taxpayer is provided access to the nonprivileged portions of 

the case file on record regarding the disputed issues (other 

than documents provided by the taxpayer to the Internal 

Revenue Service) not later than 10 days before the date 

of such conference. 

‘‘(B) TAXPAYER ELECTION TO EXPEDITE CONFERENCE.— 

If the taxpayer so elects, subparagraph (A) shall be applied 

by substituting ‘the date of such conference’ for ‘10 days 

before the date of such conference’. 

‘‘(C) SPECIFIED TAXPAYER.—For purposes of this paragraph— 

‘‘(i) IN GENERAL.—The term ‘specified taxpayer’ 

means— 

‘‘(I) in the case of any taxpayer who is a natural person, a taxpayer whose adjusted gross 

income does not exceed $400,000 for the taxable 

year to which the dispute relates, and 
H. R. 3151—5 

‘‘(II) in the case of any other taxpayer, a taxpayer whose gross receipts do not exceed $5 million 

for the taxable year to which the dispute relates. 

‘‘(ii) AGGREGATION RULE.—Rules similar to the 

rules of section 448(c)(2) shall apply for purposes of 

clause (i)(II).’’. 

(b) CONFORMING AMENDMENTS.— 

(1) The following provisions are each amended by striking 

‘‘Internal Revenue Service Office of Appeals’’ and inserting 

‘‘Internal Revenue Service Independent Office of Appeals’’: 

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

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

(C) Subsections (b)(1) and (d)(3) of section 6330. 

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

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

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

(G) Subsections (a), (b)(1), (b)(2), and (c)(1) of section 

7123. 

(H) Subsections (c)(7)(B)(i) and (g)(2)(A) of section 7430. 

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

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

(2) Section 7430(c)(2) is amended by striking ‘‘Internal Revenue Service Office of Appeals’’ each place it appears and 

inserting ‘‘Internal Revenue Service Independent Office of 

Appeals’’. 

(3) The heading of section 6330(d)(3) is amended by 

inserting ‘‘INDEPENDENT’’ after ‘‘IRS’’. 

(c) OTHER REFERENCES.—Any reference in any provision of 

law, or regulation or other guidance, to the Internal Revenue Service 

Office of Appeals shall be treated as a reference to the Internal 

Revenue Service Independent Office of Appeals. 

(d) SAVINGS PROVISIONS.—Rules similar to the rules of paragraphs (2) through (6) of section 1001(b) of the Internal Revenue 

Service Restructuring and Reform Act of 1998 shall apply for purposes of this section (and the amendments made by this section). 

(e) EFFECTIVE DATE.— 

(1) IN GENERAL.—Except as otherwise provided in this subsection, the amendments made by this section shall take effect 

on the date of the enactment of this Act. 

(2) ACCESS TO CASE FILES.—Section 7803(e)(7) of the 

Internal Revenue Code of 1986, as added by subsection (a), 

shall apply to conferences occurring after the date which is 

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

Subtitle B—Improved Service 

SEC. 1101. COMPREHENSIVE CUSTOMER SERVICE STRATEGY. 

(a) IN GENERAL.—Not later than the date which is 1 year 

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

Treasury (or the Secretary’s delegate) shall submit to Congress 

a written comprehensive customer service strategy for the Internal 

Revenue Service. Such strategy shall include— 

(1) a plan to provide assistance to taxpayers that is secure, 

designed to meet reasonable taxpayer expectations, and adopts 

appropriate best practices of customer service provided in the 
H. R. 3151—6 

private sector, including online services, telephone call back 

services, and training of employees providing customer services; 

(2) a thorough assessment of the services that the Internal 

Revenue Service can co-locate with other Federal services or 

offer as self-service options; 

(3) proposals to improve Internal Revenue Service customer 

service in the short term (the current and following fiscal 

year), medium term (approximately 3 to 5 fiscal years), and 

long term (approximately 10 fiscal years); 

(4) a plan to update guidance and training materials for 

customer service employees of the Internal Revenue Service, 

including the Internal Revenue Manual, to reflect such strategy; 

and 

(5) identified metrics and benchmarks for quantitatively 

measuring the progress of the Internal Revenue Service in 

implementing such strategy. 

(b) UPDATED GUIDANCE AND TRAINING MATERIALS.—Not later 

than 2 years after the date of the enactment of this Act, the 

Secretary of the Treasury (or the Secretary’s delegate) shall make 

available the updated guidance and training materials described 

in subsection (a)(4) (including the Internal Revenue Manual). Such 

updated guidance and training materials (including the Internal 

Revenue Manual) shall be written in a manner so as to be easily 

understood by customer service employees of the Internal Revenue 

Service and shall provide clear instructions. 

SEC. 1102. LOW-INCOME EXCEPTION FOR PAYMENTS OTHERWISE 

REQUIRED IN CONNECTION WITH A SUBMISSION OF AN 

OFFER-IN-COMPROMISE. 

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

the end the following new paragraph: 

‘‘(3) EXCEPTION FOR LOW-INCOME TAXPAYERS.—Paragraph 

(1), and any user fee otherwise required in connection with 

the submission of an offer-in-compromise, shall not apply to 

any offer-in-compromise with respect to a taxpayer who is 

an individual with adjusted gross income, as determined for 

the most recent taxable year for which such information is 

available, which does not exceed 250 percent of the applicable 

poverty level (as determined by the Secretary).’’. 

(b) EFFECTIVE DATE.—The amendment made by this section 

shall apply to offers-in-compromise submitted after the date of 

the enactment of this Act. 

Subtitle C—Sensible Enforcement 

SEC. 1201. INTERNAL REVENUE SERVICE SEIZURE REQUIREMENTS 

WITH RESPECT TO STRUCTURING TRANSACTIONS. 

Section 5317(c)(2) of title 31, United States Code, is amended— 

(1) by striking ‘‘Any property’’ and inserting the following: 

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

(2) by adding at the end the following: 

‘‘(B) INTERNAL REVENUE SERVICE SEIZURE REQUIRE- MENTS WITH RESPECT TO STRUCTURING TRANSACTIONS.— ‘‘(i) PROPERTY DERIVED FROM AN ILLEGAL SOURCE.— 

Property may only be seized by the Internal Revenue 

Service pursuant to subparagraph (A) by reason of 
H. R. 3151—7 

a claimed violation of section 5324 if the property 

to be seized was derived from an illegal source or 

the funds were structured for the purpose of concealing 

the violation of a criminal law or regulation other 

than section 5324. 

‘‘(ii) NOTICE.—Not later than 30 days after property is seized by the Internal Revenue Service pursuant 

to subparagraph (A), the Internal Revenue Service 

shall— 

‘‘(I) make a good faith effort to find all persons 

with an ownership interest in such property; and 

‘‘(II) provide each such person so found with 

a notice of the seizure and of the person’s rights 

under clause (iv). 

‘‘(iii) EXTENSION OF NOTICE UNDER CERTAIN CIRCUMSTANCES.—The Internal Revenue Service may 

apply to a court of competent jurisdiction for one 30- 

day extension of the notice requirement under clause 

(ii) if the Internal Revenue Service can establish probable cause of an imminent threat to national security 

or personal safety necessitating such extension. 

‘‘(iv) POST-SEIZURE HEARING.—If a person with an 

ownership interest in property seized pursuant to 

subparagraph (A) by the Internal Revenue Service 

requests a hearing by a court of competent jurisdiction 

within 30 days after the date on which notice is provided under subclause (ii), such property shall be 

returned unless the court holds an adversarial hearing 

and finds within 30 days of such request (or such 

longer period as the court may provide, but only on 

request of an interested party) that there is probable 

cause to believe that there is a violation of section 

5324 involving such property and probable cause to 

believe that the property to be seized was derived 

from an illegal source or the funds were structured 

for the purpose of concealing the violation of a criminal 

law or regulation other than section 5324.’’. 

SEC. 1202. EXCLUSION OF INTEREST RECEIVED IN ACTION TO 

RECOVER PROPERTY SEIZED BY THE INTERNAL REVENUE 

SERVICE BASED ON STRUCTURING TRANSACTION. 

(a) IN GENERAL.—Part III of subchapter B of chapter 1 is 

amended by inserting before section 140 the following new section: 

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

SEIZED BY THE INTERNAL REVENUE SERVICE BASED ON 

STRUCTURING TRANSACTION. 

‘‘Gross income shall not include any interest received from 

the Federal Government in connection with an action to recover 

property seized by the Internal Revenue Service pursuant to section 

5317(c)(2) of title 31, United States Code, by reason of a claimed 

violation of section 5324 of such title.’’. 
H. R. 3151—8 

(b) CLERICAL AMENDMENT.—The table of sections for part III 

of subchapter B of chapter 1 is amended by inserting before the 

item relating to section 140 the following new item: 

‘‘Sec. 139H. Interest received in action to recover property seized by the Internal 

Revenue Service based on structuring transaction.’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall apply to interest received on or after the date of the enactment 

of this Act. 

SEC. 1203. CLARIFICATION OF EQUITABLE RELIEF FROM JOINT 

LIABILITY. 

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

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

new paragraph: 

‘‘(7) STANDARD AND SCOPE OF REVIEW.—Any review of a 

determination made under this section shall be reviewed de 

novo by the Tax Court and shall be based upon— 

‘‘(A) the administrative record established at the time 

of the determination, and 

‘‘(B) any additional newly discovered or previously 

unavailable evidence.’’; and 

(2) by amending subsection (f) to read as follows: 

‘‘(f) EQUITABLE RELIEF.— 

‘‘(1) IN GENERAL.—Under procedures prescribed by the Secretary, if— 

‘‘(A) taking into account all the facts and circumstances, it is inequitable to hold the individual liable 

for any unpaid tax or any deficiency (or any portion of 

either), and 

‘‘(B) relief is not available to such individual under 

subsection (b) or (c), 

the Secretary may relieve such individual of such liability. 

‘‘(2) LIMITATION.—A request for equitable relief under this 

subsection may be made with respect to any portion of any 

liability that— 

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

is made before the expiration of the applicable period of 

limitation under section 6502, or 

‘‘(B) has been paid, provided that such request is made 

during the period in which the individual could submit 

a timely claim for refund or credit of such payment.’’. 

(b) EFFECTIVE DATE.—The amendments made by this section 

shall apply to petitions or requests filed or pending on or after 

the date of the enactment of this Act. 

SEC. 1204. MODIFICATION OF PROCEDURES FOR ISSUANCE OF THIRDPARTY SUMMONS. 

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

the end the following flush sentence: 

‘‘The Secretary shall not issue any summons described in the preceding sentence unless the information sought to be obtained is 

narrowly tailored to information that pertains to the failure (or 

potential failure) of the person or group or class of persons referred 

to in paragraph (2) to comply with one or more provisions of 

the internal revenue law which have been identified for purposes 

of such paragraph.’’. 
H. R. 3151—9 

(b) EFFECTIVE DATE.—The amendments made by this section 

shall apply to summonses served after the date that is 45 days 

after the date of the enactment of this Act. 

SEC. 1205. PRIVATE DEBT COLLECTION AND SPECIAL COMPLIANCE 

PERSONNEL PROGRAM. 

(a) CERTAIN TAX RECEIVABLES NOT ELIGIBLE FOR COLLECTION

UNDER TAX COLLECTION CONTRACTS.—Section 6306(d)(3) is 

amended by striking ‘‘or’’ at the end of subparagraph (C) and 

by inserting after subparagraph (D) the following new subparagraphs: 

‘‘(E) a taxpayer substantially all of whose income consists of disability insurance benefits under section 223 of 

the Social Security Act or supplemental security income 

benefits under title XVI of the Social Security Act (including 

supplemental security income benefits of the type described 

in section 1616 of such Act or section 212 of Public Law 

93–66), or 

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

gross income, as determined for the most recent taxable 

year for which such information is available, which does 

not exceed 200 percent of the applicable poverty level (as 

determined by the Secretary),’’. 

(b) DETERMINATION OF INACTIVE TAX RECEIVABLES ELIGIBLE

FOR COLLECTION UNDER TAX COLLECTION CONTRACTS.—Section 

6306(c)(2)(A)(ii) is amended by striking ‘‘more than 1⁄3 of the period 

of the applicable statute of limitation has lapsed’’ and inserting 

‘‘more than 2 years has passed since assessment’’. 

(c) MAXIMUM LENGTH OF INSTALLMENT AGREEMENTS OFFERED

UNDER TAX COLLECTION CONTRACTS.—Section 6306(b)(1)(B) is 

amended by striking ‘‘5 years’’ and inserting ‘‘7 years’’. 

(d) CLARIFICATION THAT SPECIAL COMPLIANCE PERSONNEL PROGRAM ACCOUNT MAY BE USED FOR PROGRAM COSTS.— 

(1) IN GENERAL.—Section 6307(b) is amended— 

(A) in paragraph (2), by striking all that follows ‘‘under 

such program’’ and inserting a period, and 

(B) in paragraph (3), by striking all that follows ‘‘out 

of such account’’ and inserting ‘‘for other than program 

costs.’’. 

(2) COMMUNICATIONS, SOFTWARE, AND TECHNOLOGY COSTS

TREATED AS PROGRAM COSTS.—Section 6307(d)(2)(B) is amended 

by striking ‘‘telecommunications’’ and inserting ‘‘communications, software, technology’’. 

(3) CONFORMING AMENDMENT.—Section 6307(d)(2) is 

amended by striking ‘‘and’’ at the end of subparagraph (A), 

by striking the period at the end of subparagraph (B) and 

inserting ‘‘, and’’, and by inserting after subparagraph (B) the 

following new subparagraph: 

‘‘(C) reimbursement of the Internal Revenue Service 

or other government agencies for the cost of administering 

the qualified tax collection program under section 6306.’’. 

(e) EFFECTIVE DATES.— 

(1) IN GENERAL.—Except as otherwise provided in this subsection, the amendments made by this section shall apply to 

tax receivables identified by the Secretary (or the Secretary’s 

delegate) after December 31, 2020. 
H. R. 3151—10 

(2) MAXIMUM LENGTH OF INSTALLMENT AGREEMENTS.—The 

amendment made by subsection (c) shall apply to contracts 

entered into after the date of the enactment of this Act. 

(3) USE OF SPECIAL COMPLIANCE PERSONNEL PROGRAM

ACCOUNT.—The amendment made by subsection (d) shall apply 

to amounts expended from the special compliance personnel 

program account after the date of the enactment of this Act. 

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

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

follows: 

‘‘(1) GENERAL NOTICE.—An officer or employee of the 

Internal Revenue Service may not contact any person other 

than the taxpayer with respect to the determination or collection of the tax liability of such taxpayer unless such contact 

occurs during a period (not greater than 1 year) which is 

specified in a notice which— 

‘‘(A) informs the taxpayer that contacts with persons 

other than the taxpayer are intended to be made during 

such period, and 

‘‘(B) except as otherwise provided by the Secretary, 

is provided to the taxpayer not later than 45 days before 

the beginning of such period. 

Nothing in the preceding sentence shall prevent the issuance 

of notices to the same taxpayer with respect to the same tax 

liability with periods specified therein that, in the aggregate, 

exceed 1 year. A notice shall not be issued under this paragraph 

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

to contact persons other than the taxpayer during the period 

specified in such notice. The preceding sentence shall not prevent the issuance of a notice if the requirement of such sentence 

is met on the basis of the assumption that the information 

sought to be obtained by such contact will not be obtained 

by other means before such contact.’’. 

(b) EFFECTIVE DATE.—The amendment made by this section 

shall apply to notices provided, and contacts of persons made, 

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

of this Act. 

SEC. 1207. MODIFICATION OF AUTHORITY TO ISSUE DESIGNATED SUMMONS. 

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

by striking ‘‘coordinated examination program’’ and inserting 

‘‘coordinated industry case program’’. 

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

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

‘‘(i) the issuance of such summons is preceded by 

a review and written approval of such issuance by 

the Commissioner of the relevant operating division 

of the Internal Revenue Service and the Chief Counsel 

which— 

‘‘(I) states facts clearly establishing that the 

Secretary has made reasonable requests for the 

information that is the subject of the summons, 

and 

‘‘(II) is attached to such summons,’’. 
H. R. 3151—11 

(c) ESTABLISHMENT THAT REASONABLE REQUESTS FOR INFORMATION WERE MADE.—Subsection (j) of section 6503 is amended by 

adding at the end the following new paragraph: 

‘‘(4) ESTABLISHMENT THAT REASONABLE REQUESTS FOR

INFORMATION WERE MADE.—In any court proceeding described 

in paragraph (3), the Secretary shall establish that reasonable 

requests were made for the information that is the subject 

of the summons.’’. 

(d) EFFECTIVE DATE.—The amendments made by this section 

shall apply to summonses issued after the date which is 45 days 

after the date of the enactment of this Act. 

SEC. 1208. LIMITATION ON ACCESS OF NON-INTERNAL REVENUE 

SERVICE EMPLOYEES TO RETURNS AND RETURN 

INFORMATION. 

(a) IN GENERAL.—Section 7602 is amended by adding at the 

end the following new subsection: 

‘‘(f) LIMITATION ON ACCESS OF PERSONS OTHER THAN INTERNAL

REVENUE SERVICE OFFICERS AND EMPLOYEES.—The Secretary shall 

not, under the authority of section 6103(n), provide any books, 

papers, records, or other data obtained pursuant to this section 

to any person authorized under section 6103(n), except when such 

person requires such information for the sole purpose of providing 

expert evaluation and assistance to the Internal Revenue Service. 

No person other than an officer or employee of the Internal Revenue 

Service or the Office of Chief Counsel may, on behalf of the Secretary, question a witness under oath whose testimony was obtained 

pursuant to this section.’’. 

(b) EFFECTIVE DATE.—The amendment made by this section— 

(1) shall take effect on the date of the enactment of this 

Act; and 

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

section 6103(n) of the Internal Revenue Code of 1986 merely 

because such contract was in effect before the date of the 

enactment of this Act. 

Subtitle D—Organizational Modernization 

SEC. 1301. OFFICE OF THE NATIONAL TAXPAYER ADVOCATE. 

(a) TAXPAYER ADVOCATE DIRECTIVES.— 

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

at the end the following new paragraph: 

‘‘(5) TAXPAYER ADVOCATE DIRECTIVES.—In the case of any 

Taxpayer Advocate Directive issued by the National Taxpayer 

Advocate pursuant to a delegation of authority from the 

Commissioner of Internal Revenue— 

‘‘(A) the Commissioner or a Deputy Commissioner shall 

modify, rescind, or ensure compliance with such directive 

not later than 90 days after the issuance of such directive, 

and 

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

or rescinded by a Deputy Commissioner, the National Taxpayer Advocate may (not later than 90 days after such 

modification or rescission) appeal to the Commissioner, 

and the Commissioner shall (not later than 90 days after 

such appeal is made) ensure compliance with such directive 
H. R. 3151—12 

as issued by the National Taxpayer Advocate or provide 

the National Taxpayer Advocate with the reasons for any 

modification or rescission made or upheld by the Commissioner pursuant to such appeal.’’. 

(2) REPORT TO CERTAIN COMMITTEES OF CONGRESS

REGARDING DIRECTIVES.—Section 7803(c)(2)(B)(ii) is amended 

by redesignating subclauses (VIII) through (XI) as subclauses 

(IX) through (XII), respectively, and by inserting after subclause 

(VII) the following new subclause: 

‘‘(VIII) identify any Taxpayer Advocate Directive which was not honored by the Internal Revenue Service in a timely manner, as specified 

under paragraph (5);’’. 

(b) NATIONAL TAXPAYER ADVOCATE ANNUAL REPORTS TO CONGRESS.— 

(1) INCLUSION OF MOST SERIOUS TAXPAYER PROBLEMS.— 

Section 7803(c)(2)(B)(ii)(III) is amended by striking ‘‘at least 

20 of the’’ and inserting ‘‘the 10’’. 

(2) COORDINATION WITH TREASURY INSPECTOR GENERAL FOR

TAX ADMINISTRATION.—Section 7803(c)(2) is amended by adding 

at the end the following new subparagraph: 

‘‘(E) COORDINATION WITH TREASURY INSPECTOR GEN- ERAL FOR TAX ADMINISTRATION.—Before beginning any 

research or study, the National Taxpayer Advocate shall 

coordinate with the Treasury Inspector General for Tax 

Administration to ensure that the National Taxpayer Advocate does not duplicate any action that the Treasury 

Inspector General for Tax Administration has already 

undertaken or has a plan to undertake.’’. 

(3) STATISTICAL SUPPORT.— 

(A) IN GENERAL.—Section 6108 is amended by adding 

at the end the following new subsection: 

‘‘(d) STATISTICAL SUPPORT FOR NATIONAL TAXPAYER ADVOCATE.—Upon request of the National Taxpayer Advocate, the Secretary shall, to the extent practicable, provide the National Taxpayer Advocate with statistical support in connection with the 

preparation by the National Taxpayer Advocate of the annual report 

described in section 7803(c)(2)(B)(ii). Such statistical support shall 

include statistical studies, compilations, and the review of information provided by the National Taxpayer Advocate for statistical 

validity and sound statistical methodology.’’. 

(B) DISCLOSURE OF REVIEW.—Section 7803(c)(2)(B)(ii), 

as amended by subsection (a), is amended by striking ‘‘and’’ 

at the end of subclause (XI), by redesignating subclause 

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

(XI) the following new subclause: 

‘‘(XII) with respect to any statistical information included in such report, include a statement 

of whether such statistical information was 

reviewed or provided by the Secretary under section 6108(d) and, if so, whether the Secretary 

determined such information to be statistically 

valid and based on sound statistical methodology; 

and’’. 

(C) CONFORMING AMENDMENT.—Section 

7803(c)(2)(B)(iii) is amended by adding at the end the following: ‘‘The preceding sentence shall not apply with 
H. R. 3151—13 

respect to statistical information provided to the Secretary 

for review, or received from the Secretary, under section 

6108(d).’’. 

(c) SALARY OF NATIONAL TAXPAYER ADVOCATE.—Section 

7803(c)(1)(B)(i) is amended by striking ‘‘, or, if the Secretary of 

the Treasury so determines, at a rate fixed under section 9503 

of such title’’. 

(d) EFFECTIVE DATE.— 

(1) IN GENERAL.—Except as otherwise provided in this subsection, the amendments made by this section shall take effect 

on the date of the enactment of this Act. 

(2) SALARY OF NATIONAL TAXPAYER ADVOCATE.—The amendment made by subsection (c) shall apply to compensation paid 

to individuals appointed as the National Taxpayer Advocate 

after March 31, 2019. 

SEC. 1302. MODERNIZATION OF INTERNAL REVENUE SERVICE 

ORGANIZATIONAL STRUCTURE. 

(a) IN GENERAL.—Not later than September 30, 2020, the Secretary of the Treasury (or the Secretary’s delegate) shall submit 

to Congress a comprehensive written plan to redesign the organization of the Internal Revenue Service. Such plan shall— 

(1) ensure the successful implementation of the priorities 

specified by Congress in this Act; 

(2) prioritize taxpayer services to ensure that all taxpayers 

easily and readily receive the assistance that they need; 

(3) streamline the structure of the agency including minimizing the duplication of services and responsibilities within 

the agency; 

(4) best position the Internal Revenue Service to combat 

cybersecurity and other threats to the Internal Revenue Service; 

and 

(5) address whether the Criminal Investigation Division 

of the Internal Revenue Service should report directly to the 

Commissioner of Internal Revenue. 

(b) REPEAL OF RESTRICTION ON ORGANIZATIONAL STRUCTURE

OF INTERNAL REVENUE SERVICE.—Paragraph (3) of section 1001(a) 

of the Internal Revenue Service Restructuring and Reform Act 

of 1998 shall cease to apply beginning 1 year after the date on 

which the plan described in subsection (a) is submitted to Congress. 

Subtitle E—Other Provisions 

SEC. 1401. RETURN PREPARATION PROGRAMS FOR APPLICABLE TAXPAYERS. 

(a) IN GENERAL.—Chapter 77 is amended by inserting after 

section 7526 the following new section: 

‘‘SEC. 7526A. RETURN PREPARATION PROGRAMS FOR APPLICABLE 

TAXPAYERS. 

‘‘(a) ESTABLISHMENT OF VOLUNTEER INCOME TAX ASSISTANCE

MATCHING GRANT PROGRAM.—The Secretary shall establish a 

Community Volunteer Income Tax Assistance Matching Grant Program under which the Secretary may, subject to the availability 

of appropriated funds, make grants to provide matching funds for 

the development, expansion, or continuation of qualified return 
H. R. 3151—14 

preparation programs assisting applicable taxpayers and members 

of underserved populations. 

‘‘(b) USE OF FUNDS.— 

‘‘(1) IN GENERAL.—Qualified return preparation programs 

may use grants received under this section for— 

‘‘(A) ordinary and necessary costs associated with program operation in accordance with cost principles under 

the applicable Office of Management and Budget circular, 

including— 

‘‘(i) wages or salaries of persons coordinating the 

activities of the program, 

‘‘(ii) developing training materials, conducting 

training, and performing quality reviews of the returns 

prepared under the program, 

‘‘(iii) equipment purchases, and 

‘‘(iv) vehicle-related expenses associated with 

remote or rural tax preparation services, 

‘‘(B) outreach and educational activities described in 

subsection (c)(2)(B), and 

‘‘(C) services related to financial education and capability, asset development, and the establishment of savings 

accounts in connection with tax return preparation. 

‘‘(2) REQUIREMENT OF MATCHING FUNDS.—A qualified return 

preparation program must provide matching funds on a dollarfor-dollar basis for all grants provided under this section. 

Matching funds may include— 

‘‘(A) the salary (including fringe benefits) of individuals 

performing services for the program, 

‘‘(B) the cost of equipment used in the program, and 

‘‘(C) other ordinary and necessary costs associated with 

the program. 

Indirect expenses, including general overhead of any entity 

administering the program, shall not be counted as matching 

funds. 

‘‘(c) APPLICATION.— 

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

section shall submit an application to the Secretary at such 

time, in such manner, and containing such information as 

the Secretary may reasonably require. 

‘‘(2) PRIORITY.—In awarding grants under this section, the 

Secretary shall give priority to applications which demonstrate— 

‘‘(A) assistance to applicable taxpayers, with emphasis 

on outreach to, and services for, such taxpayers, 

‘‘(B) taxpayer outreach and educational activities 

relating to eligibility and availability of income supports 

available through this title, including the earned income 

tax credit, and 

‘‘(C) specific outreach and focus on one or more underserved populations. 

‘‘(3) AMOUNTS TAKEN INTO ACCOUNT.—In determining 

matching grants under this section, the Secretary shall only 

take into account amounts provided by the qualified return 

preparation program for expenses described in subsection (b). 

‘‘(d) PROGRAM ADHERENCE.— 

‘‘(1) IN GENERAL.—The Secretary shall establish procedures 

for, and shall conduct not less frequently than once every 
H. R. 3151—15 

5 calendar years during which a qualified return preparation 

program is operating under a grant under this section, periodic 

site visits— 

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

of this section, and 

‘‘(B) to determine whether the program meets such 

program adherence standards as the Secretary shall by 

regulation or other guidance prescribe. 

‘‘(2) ADDITIONAL REQUIREMENTS FOR GRANT RECIPIENTS NOT

MEETING PROGRAM ADHERENCE STANDARDS.—In the case of any 

qualified return preparation program which— 

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

‘‘(B) is subsequently determined— 

‘‘(i) not to meet the program adherence standards 

described in paragraph (1)(B), or 

‘‘(ii) not to be otherwise carrying out the purposes 

of this section, 

such program shall not be eligible for any additional grants 

under this section unless such program provides sufficient documentation of corrective measures established to address any 

such deficiencies determined. 

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

‘‘(1) QUALIFIED RETURN PREPARATION PROGRAM.—The term 

‘qualified return preparation program’ means any program— 

‘‘(A) which provides assistance to individuals, not less 

than 90 percent of whom are applicable taxpayers, in preparing and filing Federal income tax returns, 

‘‘(B) which is administered by a qualified entity, 

‘‘(C) in which all volunteers who assist in the preparation of Federal income tax returns meet the training 

requirements prescribed by the Secretary, and 

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

100 percent of all returns. 

‘‘(2) QUALIFIED ENTITY.— 

‘‘(A) IN GENERAL.—The term ‘qualified entity’ means 

any entity which— 

‘‘(i) is an eligible organization, 

‘‘(ii) is in compliance with Federal tax filing and 

payment requirements, 

‘‘(iii) is not debarred or suspended from Federal 

contracts, grants, or cooperative agreements, and 

‘‘(iv) agrees to provide documentation to substantiate any matching funds provided pursuant to the 

grant program under this section. 

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

organization’ means— 

‘‘(i) an institution of higher education which is 

described in section 102 (other than subsection (a)(1)(C) 

thereof) of the Higher Education Act of 1965 (20 U.S.C. 

1002), as in effect on the date of the enactment of 

this section, and which has not been disqualified from 

participating in a program under title IV of such Act, 

‘‘(ii) an organization described in section 501(c) 

and exempt from tax under section 501(a), 

‘‘(iii) a local government agency, including— 

‘‘(I) a county or municipal government agency, 

and 
H. R. 3151—16 

‘‘(II) an Indian tribe, as defined in section 

4(13) of the Native American Housing Assistance 

and Self-Determination Act of 1996 (25 U.S.C. 

4103(13)), including any tribally designated 

housing entity (as defined in section 4(22) of such 

Act (25 U.S.C. 4103(22))), tribal subsidiary, subdivision, or other wholly owned tribal entity, 

‘‘(iv) a local, State, regional, or national coalition 

(with one lead organization which meets the eligibility 

requirements of clause (i), (ii), or (iii) acting as the 

applicant organization), or 

‘‘(v) in the case of applicable taxpayers and members of underserved populations with respect to which 

no organizations described in the preceding clauses 

are available— 

‘‘(I) a State government agency, or 

‘‘(II) an office providing Cooperative Extension 

services (as established at the land-grant colleges 

and universities under the Smith-Lever Act of May 

8, 1914). 

‘‘(3) APPLICABLE TAXPAYERS.—The term ‘applicable taxpayer’ means a taxpayer whose income for the taxable year 

does not exceed an amount equal to the completed phaseout 

amount under section 32(b) for a married couple filing a joint 

return with three or more qualifying children, as determined 

in a revenue procedure or other published guidance. 

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

population’ includes populations of persons with disabilities, 

persons with limited English proficiency, Native Americans, 

individuals living in rural areas, members of the Armed Forces 

and their spouses, and the elderly. 

‘‘(f) SPECIAL RULES AND LIMITATIONS.— 

‘‘(1) DURATION OF GRANTS.—Upon application of a qualified 

return preparation program, the Secretary is authorized to 

award a multi-year grant not to exceed 3 years. 

‘‘(2) AGGREGATE LIMITATION.—Unless otherwise provided 

by specific appropriation, the Secretary shall not allocate more 

than $30 million per fiscal year (exclusive of costs of administering the program) to grants under this section. 

‘‘(g) PROMOTION OF PROGRAMS.— 

‘‘(1) IN GENERAL.—The Secretary shall promote tax preparation through qualified return preparation programs through 

the use of mass communications and other means. 

‘‘(2) PROVISION OF INFORMATION REGARDING QUALIFIED

RETURN PREPARATION PROGRAMS.—The Secretary may provide 

taxpayers information regarding qualified return preparation 

programs receiving grants under this section. 

‘‘(3) REFERRALS TO LOW-INCOME TAXPAYER CLINICS.—Qualified return preparation programs receiving a grant under this 

section are encouraged, in appropriate cases, to— 

‘‘(A) advise taxpayers of the availability of, and eligibility requirements for receiving, advice and assistance 

from qualified low-income taxpayer clinics receiving 

funding under section 7526, and 

‘‘(B) provide information regarding the location of, and 

contact information for, such clinics.’’. 
H. R. 3151—17 

(b) CLERICAL AMENDMENT.—The table of sections for chapter 

77 is amended by inserting after the item relating to section 7526 

the following new item: 

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

SEC. 1402. PROVISION OF INFORMATION REGARDING LOW-INCOME 

TAXPAYER CLINICS. 

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

the end the following new paragraph: 

‘‘(6) PROVISION OF INFORMATION REGARDING QUALIFIED LOW- INCOME TAXPAYER CLINICS.—Notwithstanding any other provision of law, officers and employees of the Department of the 

Treasury may— 

‘‘(A) advise taxpayers of the availability of, and eligibility requirements for receiving, advice and assistance 

from one or more specific qualified low-income taxpayer 

clinics receiving funding under this section, and 

‘‘(B) provide information regarding the location of, and 

contact information for, such clinics.’’. 

(b) EFFECTIVE DATE.—The amendment made by this section 

shall take effect on the date of the enactment of this Act. 

SEC. 1403. NOTICE FROM IRS REGARDING CLOSURE OF TAXPAYER 

ASSISTANCE CENTERS. 

Not later than 90 days before the date that a proposed closure 

of a Taxpayer Assistance Center would take effect, the Secretary 

of the Treasury (or the Secretary’s delegate) shall— 

(1) make publicly available (including by non-electronic 

means) a notice which— 

(A) identifies the Taxpayer Assistance Center proposed 

for closure and the date of such proposed closure; and 

(B) identifies the relevant alternative sources of taxpayer assistance which may be utilized by taxpayers 

affected by such proposed closure; and 

(2) submit to Congress a written report that includes— 

(A) the information included in the notice described 

in paragraph (1); 

(B) the reasons for such proposed closure; and 

(C) such other information as the Secretary may determine appropriate. 

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

RESTRICTED TO ONLY PERISHABLE GOODS. 

(a) IN GENERAL.—Section 6336 is amended by striking ‘‘or 

become greatly reduced in price or value by keeping, or that such 

property cannot be kept without great expense’’. 

(b) EFFECTIVE DATE.—The amendment made by this section 

shall apply to property seized after the date of the enactment 

of this Act. 

SEC. 1405. WHISTLEBLOWER REFORMS. 

(a) MODIFICATIONS TO DISCLOSURE RULES FOR WHISTLEBLOWERS.— 

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

at the end the following new paragraph: 

‘‘(13) DISCLOSURE TO WHISTLEBLOWERS.— 

‘‘(A) IN GENERAL.—The Secretary may disclose, to any 

individual providing information relating to any purpose 
H. R. 3151—18 

described in paragraph (1) or (2) of section 7623(a), return 

information related to the investigation of any taxpayer 

with respect to whom the individual has provided such 

information, but only to the extent that such disclosure 

is necessary in obtaining information, which is not otherwise reasonably available, with respect to the correct determination of tax liability for tax, or the amount to be collected with respect to the enforcement of any other provision of this title. 

‘‘(B) UPDATES ON WHISTLEBLOWER INVESTIGATIONS.— 

The Secretary shall disclose to an individual providing 

information relating to any purpose described in paragraph 

(1) or (2) of section 7623(a) the following: 

‘‘(i) Not later than 60 days after a case for which 

the individual has provided information has been 

referred for an audit or examination, a notice with 

respect to such referral. 

‘‘(ii) Not later than 60 days after a taxpayer with 

respect to whom the individual has provided information has made a payment of tax with respect to tax 

liability to which such information relates, a notice 

with respect to such payment. 

‘‘(iii) Subject to such requirements and conditions 

as are prescribed by the Secretary, upon a written 

request by such individual— 

‘‘(I) information on the status and stage of 

any investigation or action related to such information, and 

‘‘(II) in the case of a determination of the 

amount of any award under section 7623(b), the 

reasons for such determination. 

Clause (iii) shall not apply to any information if the Secretary determines that disclosure of such information would 

seriously impair Federal tax administration. Information 

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

to a designee of the individual providing such information 

in accordance with guidance provided by the Secretary.’’. 

(2) CONFORMING AMENDMENTS.— 

(A) CONFIDENTIALITY OF INFORMATION.—Section 

6103(a)(3) is amended by striking ‘‘subsection (k)(10)’’ and 

inserting ‘‘paragraph (10) or (13) of subsection (k)’’. 

(B) PENALTY FOR UNAUTHORIZED DISCLOSURE.—Section 

7213(a)(2) is amended by striking ‘‘(k)(10)’’ and inserting 

‘‘(k)(10) or (13)’’. 

(C) COORDINATION WITH AUTHORITY TO DISCLOSE FOR

INVESTIGATIVE PURPOSES.—Section 6103(k)(6) is amended 

by adding at the end the following new sentence: ‘‘This 

paragraph shall not apply to any disclosure to an individual 

providing information relating to any purpose described 

in paragraph (1) or (2) of section 7623(a) which is made 

under paragraph (13)(A).’’. 

(b) PROTECTION AGAINST RETALIATION.—Section 7623 is 

amended by adding at the end the following new subsection: 

‘‘(d) CIVIL ACTION TO PROTECT AGAINST RETALIATION CASES.— ‘‘(1) ANTI-RETALIATION WHISTLEBLOWER PROTECTION FOR

EMPLOYEES.—No employer, or any officer, employee, contractor, 

subcontractor, or agent of such employer, may discharge, 
H. R. 3151—19 

demote, suspend, threaten, harass, or in any other manner 

discriminate against an employee in the terms and conditions 

of employment (including through an act in the ordinary course 

of such employee’s duties) in reprisal for any lawful act done 

by the employee— 

‘‘(A) to provide information, cause information to be 

provided, or otherwise assist in an investigation regarding 

underpayment of tax or any conduct which the employee 

reasonably believes constitutes a violation of the internal 

revenue laws or any provision of Federal law relating to 

tax fraud, when the information or assistance is provided 

to the Internal Revenue Service, the Secretary of the 

Treasury, the Treasury Inspector General for Tax Administration, the Comptroller General of the United States, the 

Department of Justice, the United States Congress, a person with supervisory authority over the employee, or any 

other person working for the employer who has the 

authority to investigate, discover, or terminate misconduct, 

or 

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

any administrative or judicial action taken by the Internal 

Revenue Service relating to an alleged underpayment of 

tax or any violation of the internal revenue laws or any 

provision of Federal law relating to tax fraud. 

‘‘(2) ENFORCEMENT ACTION.— 

‘‘(A) IN GENERAL.—A person who alleges discharge or 

other reprisal by any person in violation of paragraph 

(1) may seek relief under paragraph (3) by— 

‘‘(i) filing a complaint with the Secretary of Labor, 

or 

‘‘(ii) if the Secretary of Labor has not issued a 

final decision within 180 days of the filing of the complaint and there is no showing that such delay is 

due to the bad faith of the claimant, bringing an action 

at law or equity for de novo review in the appropriate 

district court of the United States, which shall have 

jurisdiction over such an action without regard to the 

amount in controversy. 

‘‘(B) PROCEDURE.— 

‘‘(i) IN GENERAL.—An action under subparagraph 

(A)(i) shall be governed under the rules and procedures 

set forth in section 42121(b) of title 49, United States 

Code. 

‘‘(ii) EXCEPTION.—Notification made under section 

42121(b)(1) of title 49, United States Code, shall be 

made to the person named in the complaint and to 

the employer. 

‘‘(iii) BURDENS OF PROOF.—An action brought 

under subparagraph (A)(ii) shall be governed by the 

legal burdens of proof set forth in section 42121(b) 

of title 49, United States Code, except that in applying 

such section— 

‘‘(I) ‘behavior described in paragraph (1)’ shall 

be substituted for ‘behavior described in paragraphs (1) through (4) of subsection (a)’ each place 

it appears in paragraph (2)(B) thereof, and 
H. R. 3151—20 

‘‘(II) ‘a violation of paragraph (1)’ shall be substituted for ‘a violation of subsection (a)’ each place 

it appears. 

‘‘(iv) STATUTE OF LIMITATIONS.—A complaint under 

subparagraph (A)(i) shall be filed not later than 180 

days after the date on which the violation occurs. 

‘‘(v) JURY TRIAL.—A party to an action brought 

under subparagraph (A)(ii) shall be entitled to trial 

by jury. 

‘‘(3) REMEDIES.— 

‘‘(A) IN GENERAL.—An employee prevailing in any 

action under paragraph (2)(A) shall be entitled to all relief 

necessary to make the employee whole. 

‘‘(B) COMPENSATORY DAMAGES.—Relief for any action 

under subparagraph (A) shall include— 

‘‘(i) reinstatement with the same seniority status 

that the employee would have had, but for the reprisal, 

‘‘(ii) the sum of 200 percent of the amount of back 

pay and 100 percent of all lost benefits, with interest, 

and 

‘‘(iii) compensation for any special damages sustained as a result of the reprisal, including litigation 

costs, expert witness fees, and reasonable attorney fees. 

‘‘(4) RIGHTS RETAINED BY EMPLOYEE.—Nothing in this section shall be deemed to diminish the rights, privileges, or 

remedies of any employee under any Federal or State law, 

or under any collective bargaining agreement. 

‘‘(5) NONENFORCEABILITY OF CERTAIN PROVISIONS WAIVING

RIGHTS AND REMEDIES OR REQUIRING ARBITRATION OF DISPUTES.— 

‘‘(A) WAIVER OF RIGHTS AND REMEDIES.—The rights 

and remedies provided for in this subsection may not be 

waived by any agreement, policy form, or condition of 

employment, including by a predispute arbitration agreement. 

‘‘(B) PREDISPUTE ARBITRATION AGREEMENTS.—No 

predispute arbitration agreement shall be valid or enforceable, if the agreement requires arbitration of a dispute 

arising under this subsection.’’. 

(c) EFFECTIVE DATE.— 

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

(a) shall apply to disclosures made after the date of the enactment of this Act. 

(2) CIVIL PROTECTION.—The amendment made by subsection (b) shall take effect on the date of the enactment of 

this Act. 

SEC. 1406. CUSTOMER SERVICE INFORMATION. 

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

shall provide helpful information to taxpayers placed on hold during 

a telephone call to any Internal Revenue Service help line, including 

the following: 

(1) Information about common tax scams. 

(2) Information on where and how to report tax scams. 

(3) Additional advice on how taxpayers can protect themselves from identity theft and tax scams. 
H. R. 3151—21 

SEC. 1407. MISDIRECTED TAX REFUND DEPOSITS. 

Section 6402 is amended by adding at the end the following 

new subsection: 

‘‘(n) MISDIRECTED DIRECT DEPOSIT REFUND.—Not later than 

the date which is 6 months after the date of the enactment of 

the Taxpayer First Act, the Secretary shall prescribe regulations 

to establish procedures to allow for— 

‘‘(1) taxpayers to report instances in which a refund made 

by the Secretary by electronic funds transfer was not transferred to the account of the taxpayer; 

‘‘(2) coordination with financial institutions for the purpose 

of— 

‘‘(A) identifying the accounts to which transfers 

described in paragraph (1) were made; and 

‘‘(B) recovery of the amounts so transferred; and 

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

the taxpayer.’’. 

TITLE II—21ST CENTURY IRS 

Subtitle A—Cybersecurity and Identity 

Protection 

SEC. 2001. PUBLIC-PRIVATE PARTNERSHIP TO ADDRESS IDENTITY 

THEFT REFUND FRAUD. 

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

shall work collaboratively with the public and private sectors to 

protect taxpayers from identity theft refund fraud. 

SEC. 2002. RECOMMENDATIONS OF ELECTRONIC TAX ADMINISTRATION ADVISORY COMMITTEE REGARDING IDENTITY 

THEFT REFUND FRAUD. 

The Secretary of the Treasury shall ensure that the advisory 

group convened by the Secretary pursuant to section 2001(b)(2) 

of the Internal Revenue Service Restructuring and Reform Act 

of 1998 (commonly known as the Electronic Tax Administration 

Advisory Committee) studies (including by providing organized 

public forums) and makes recommendations to the Secretary 

regarding methods to prevent identity theft and refund fraud. 

SEC. 2003. INFORMATION SHARING AND ANALYSIS CENTER. 

(a) IN GENERAL.—The Secretary of the Treasury (or the Secretary’s delegate) may participate in an information sharing and 

analysis center to centralize, standardize, and enhance data compilation and analysis to facilitate sharing actionable data and 

information with respect to identity theft tax refund fraud. 

(b) DEVELOPMENT OF PERFORMANCE METRICS.—The Secretary 

of the Treasury (or the Secretary’s delegate) shall develop metrics 

for measuring the success of such center in detecting and preventing 

identity theft tax refund fraud. 

(c) DISCLOSURE.— 

(1) IN GENERAL.—Section 6103(k), as amended by this Act, 

is amended by adding at the end the following new paragraph: 

‘‘(14) DISCLOSURE OF RETURN INFORMATION FOR PURPOSES

OF CYBERSECURITY AND THE PREVENTION OF IDENTITY THEFT

TAX REFUND FRAUD.— 
H. R. 3151—22 

‘‘(A) IN GENERAL.—Under such procedures and subject 

to such conditions as the Secretary may prescribe, the 

Secretary may disclose specified return information to 

specified ISAC participants to the extent that the Secretary 

determines such disclosure is in furtherance of effective 

Federal tax administration relating to the detection or 

prevention of identity theft tax refund fraud, validation 

of taxpayer identity, authentication of taxpayer returns, 

or detection or prevention of cybersecurity threats. 

‘‘(B) SPECIFIED ISAC PARTICIPANTS.—For purposes of 

this paragraph— 

‘‘(i) IN GENERAL.—The term ‘specified ISAC participant’ means— 

‘‘(I) any person designated by the Secretary 

as having primary responsibility for a function 

performed with respect to the information sharing 

and analysis center described in section 2003(a) 

of the Taxpayer First Act, and 

‘‘(II) any person subject to the requirements 

of section 7216 and which is a participant in such 

information sharing and analysis center. 

‘‘(ii) INFORMATION SHARING AGREEMENT.—Such 

term shall not include any person unless such person 

has entered into a written agreement with the Secretary setting forth the terms and conditions for the 

disclosure of information to such person under this 

paragraph, including requirements regarding the 

protection and safeguarding of such information by 

such person. 

‘‘(C) SPECIFIED RETURN INFORMATION.—For purposes 

of this paragraph, the term ‘specified return information’ 

means— 

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

with a case of potential identity theft refund fraud— 

‘‘(I) in the case of such return filed electronically, the internet protocol address, device identification, email domain name, speed of completion, 

method of authentication, refund method, and such 

other return information related to the electronic 

filing characteristics of such return as the Secretary may identify for purposes of this subclause, 

and 

‘‘(II) in the case of such return prepared by 

a tax return preparer, identifying information with 

respect to such tax return preparer, including the 

preparer taxpayer identification number and electronic filer identification number of such preparer, 

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

with a case of a identity theft refund fraud which 

has been confirmed by the Secretary (pursuant to such 

procedures as the Secretary may provide), the information referred to in subclauses (I) and (II) of clause 

(i), the name and taxpayer identification number of 

the taxpayer as it appears on the return, and any 

bank account and routing information provided for 

making a refund in connection with such return, and 
H. R. 3151—23 

‘‘(iii) in the case of any cybersecurity threat to 

the Internal Revenue Service, information similar to 

the information described in subclauses (I) and (II) 

of clause (i) with respect to such threat. 

‘‘(D) RESTRICTION ON USE OF DISCLOSED INFORMATION.— 

‘‘(i) DESIGNATED THIRD PARTIES.—Any return 

information received by a person described in subparagraph (B)(i)(I) shall be used only for the purposes of 

and to the extent necessary in— 

‘‘(I) performing the function such person is 

designated to perform under such subparagraph, 

‘‘(II) facilitating disclosures authorized under 

subparagraph (A) to persons described in subparagraph (B)(i)(II), and 

‘‘(III) facilitating disclosures authorized under 

subsection (d) to participants in such information 

sharing and analysis center. 

‘‘(ii) RETURN PREPARERS.—Any return information 

received by a person described in subparagraph 

(B)(i)(II) shall be treated for purposes of section 7216 

as information furnished to such person for, or in 

connection with, the preparation of a return of the 

tax imposed under chapter 1. 

‘‘(E) DATA PROTECTION AND SAFEGUARDS.—Return 

information disclosed under this paragraph shall be subject 

to such protections and safeguards as the Secretary may 

require in regulations or other guidance or in the written 

agreement referred to in subparagraph (B)(ii). Such written 

agreement shall include a requirement that any unauthorized access to information disclosed under this paragraph, 

and any breach of any system in which such information 

is held, be reported to the Treasury Inspector General 

for Tax Administration.’’. 

(2) APPLICATION OF CIVIL AND CRIMINAL PENALTIES.— 

(A) Section 6103(a)(3), as amended by this Act, is 

amended by striking ‘‘or (13)’’ and inserting ‘‘, (13), or 

(14)’’. 

(B) Section 7213(a)(2), as amended by this Act, is 

amended by striking ‘‘or (13)’’ and inserting ‘‘, (13), or 

(14)’’. 

SEC. 2004. COMPLIANCE BY CONTRACTORS WITH CONFIDENTIALITY 

SAFEGUARDS. 

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

the end the following new paragraph: 

‘‘(9) DISCLOSURE TO CONTRACTORS AND OTHER AGENTS.— 

Notwithstanding any other provision of this section, no return 

or return information shall be disclosed to any contractor or 

other agent of a Federal, State, or local agency unless such 

agency, to the satisfaction of the Secretary— 

‘‘(A) has requirements in effect which require each 

such contractor or other agent which would have access 

to returns or return information to provide safeguards 

(within the meaning of paragraph (4)) to protect the confidentiality of such returns or return information, 
H. R. 3151—24 

‘‘(B) agrees to conduct an on-site review every 3 years 

(or a mid-point review in the case of contracts or agreements of less than 3 years in duration) of each contractor 

or other agent to determine compliance with such requirements, 

‘‘(C) submits the findings of the most recent review 

conducted under subparagraph (B) to the Secretary as part 

of the report required by paragraph (4)(E), and 

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

annual period that such contractor or other agent is in 

compliance with all such requirements. 

The certification required by subparagraph (D) shall include 

the name and address of each contractor or other agent, a 

description of the contract or agreement with such contractor 

or other agent, and the duration of such contract or agreement. 

The requirements of this paragraph shall not apply to disclosures pursuant to subsection (n) for purposes of Federal tax 

administration.’’. 

(b) CONFORMING AMENDMENT.—Section 6103(p)(8)(B) is 

amended by inserting ‘‘or paragraph (9)’’ after ‘‘subparagraph (A)’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall apply to disclosures made after December 31, 2022. 

SEC. 2005. IDENTITY PROTECTION PERSONAL IDENTIFICATION NUMBERS. 

(a) IN GENERAL.—Subject to subsection (b), the Secretary of 

the Treasury or the Secretary’s delegate (hereafter referred to in 

this section as the ‘‘Secretary’’) shall establish a program to issue, 

upon the request of any individual, a number which may be used 

in connection with such individual’s social security number (or 

other identifying information with respect to such individual as 

determined by the Secretary) to assist the Secretary in verifying 

such individual’s identity. 

(b) REQUIREMENTS.— (1) ANNUAL EXPANSION.—For each calendar year beginning 

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

shall provide numbers through the program described in subsection (a) to individuals residing in such States as the Secretary deems appropriate, provided that the total number of 

States served by such program during such year is greater 

than the total number of States served by such program during 

the preceding year. 

(2) NATIONWIDE AVAILABILITY.—Not later than 5 years after 

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

ensure that the program described in subsection (a) is made 

available to any individual residing in the United States. 

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

THEFT VICTIMS. 

(a) IN GENERAL.—The Secretary of the Treasury (or the Secretary’s delegate) shall establish and implement procedures to 

ensure that any taxpayer whose return has been delayed or otherwise adversely affected due to tax-related identity theft has a single 

point of contact at the Internal Revenue Service throughout the 

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

track the taxpayer’s case to completion and coordinate with other 

Internal Revenue Service employees to resolve case issues as quickly 

as possible. 
H. R. 3151—25 

(b) SINGLE POINT OF CONTACT.— 

(1) IN GENERAL.—For purposes of subsection (a), the single 

point of contact shall consist of a team or subset of specially 

trained employees who— 

(A) have the ability to work across functions to resolve 

the issues involved in the taxpayer’s case; and 

(B) shall be accountable for handling the case until 

its resolution. 

(2) TEAM OR SUBSET.—The employees included within the 

team or subset described in paragraph (1) may change as 

required to meet the needs of the Internal Revenue Service, 

provided that procedures have been established to— 

(A) ensure continuity of records and case history; and 

(B) notify the taxpayer when appropriate. 

SEC. 2007. NOTIFICATION OF SUSPECTED IDENTITY THEFT. 

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

end the following new section: 

‘‘SEC. 7529. NOTIFICATION OF SUSPECTED IDENTITY THEFT. 

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

been or may have been an unauthorized use of the identity of 

any individual, the Secretary shall, without jeopardizing an investigation relating to tax administration— 

‘‘(1) as soon as practicable— 

‘‘(A) notify the individual of such determination, 

‘‘(B) provide instructions on how to file a report with 

law enforcement regarding the unauthorized use, 

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

to permit law enforcement to access personal information 

of the individual during the investigation, 

‘‘(D) provide information regarding actions the individual may take in order to protect the individual from 

harm relating to the unauthorized use, and 

‘‘(E) offer identity protection measures to the individual, such as the use of an identity protection personal 

identification number, and 

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

(1) is provided (or, if not available at such time, as soon as 

practicable thereafter), issue additional notifications to such 

individual (or such individual’s designee) regarding— 

‘‘(A) whether an investigation has been initiated in 

regards to such unauthorized use, 

‘‘(B) whether the investigation substantiated an 

unauthorized use of the identity of the individual, and 

‘‘(C) whether— 

‘‘(i) any action has been taken against a person 

relating to such unauthorized use, or 

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

prosecution of such person and, to the extent such 

information is available, whether such person has been 

criminally charged by indictment or information. 

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

‘‘(1) IN GENERAL.—For purposes of this section, the 

unauthorized use of the identity of an individual includes the 

unauthorized use of the identity of the individual to obtain 

employment. 
H. R. 3151—26 

‘‘(2) DETERMINATION OF EMPLOYMENT-RELATED IDENTITY

THEFT.—For purposes of this section, in making a determination 

as to whether there has been or may have been an unauthorized 

use of the identity of an individual to obtain employment, 

the Secretary shall review any information— 

‘‘(A) obtained from a statement described in section 

6051 or an information return relating to compensation 

for services rendered other than as an employee, or 

‘‘(B) provided to the Internal Revenue Service by the 

Social Security Administration regarding any statement 

described in section 6051, 

which indicates that the social security account number provided on such statement or information return does not correspond with the name provided on such statement or information return or the name on the tax return reporting the income 

which is included on such statement or information return.’’. 

(b) ADDITIONAL MEASURES.— 

(1) EXAMINATION OF BOTH PAPER AND ELECTRONIC STATEMENTS AND RETURNS.—The Secretary of the Treasury (or the 

Secretary’s delegate) shall examine the statements, information 

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

Internal Revenue Code of 1986 (as added by subsection (a)) 

for any evidence of employment-related identity theft, regardless of whether such statements or returns are submitted electronically or on paper. 

(2) IMPROVEMENT OF EFFECTIVE RETURN PROCESSING PROGRAM WITH SOCIAL SECURITY ADMINISTRATION.—Section 232 of 

the Social Security Act (42 U.S.C. 432) is amended by inserting 

after the third sentence the following: ‘‘For purposes of carrying 

out the return processing program described in the preceding 

sentence, the Commissioner of Social Security shall request, 

not less than annually, such information described in section 

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

necessary to ensure the accuracy of the records maintained 

by the Commissioner of Social Security related to the amounts 

of wages paid to, and the amounts of self-employment income 

derived by, individuals.’’. 

(3) UNDERREPORTING OF INCOME.—The Secretary of the 

Treasury (or the Secretary’s delegate) shall establish procedures 

to ensure that income reported in connection with the unauthorized use of a taxpayer’s identity is not taken into account 

in determining any penalty for underreporting of income by 

the victim of identity theft. 

(c) CLERICAL AMENDMENT.—The table of sections for chapter 

77 is amended by adding at the end the following new item: 

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

(d) EFFECTIVE DATE.—The amendments made by this section 

shall apply to determinations made after the date that is 6 months 

after the date of the enactment of this Act. 

SEC. 2008. GUIDELINES FOR STOLEN IDENTITY REFUND FRAUD CASES. 

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

enactment of this Act, the Secretary of the Treasury (or the Secretary’s delegate), in consultation with the National Taxpayer Advocate, shall develop and implement publicly available guidelines 

for management of cases involving stolen identity refund fraud 
H. R. 3151—27 

in a manner that reduces the administrative burden on taxpayers 

who are victims of such fraud. 

(b) STANDARDS AND PROCEDURES TO BE CONSIDERED.—The 

guidelines described in subsection (a) may include— 

(1) standards for— 

(A) the average length of time in which a case involving 

stolen identity refund fraud should be resolved; 

(B) the maximum length of time, on average, a taxpayer who is a victim of stolen identity refund fraud and 

is entitled to a tax refund which has been stolen should 

have to wait to receive such refund; and 

(C) the maximum number of offices and employees 

within the Internal Revenue Service with whom a taxpayer 

who is a victim of stolen identity refund fraud should 

be required to interact in order to resolve a case; 

(2) standards for opening, assigning, reassigning, or closing 

a case involving stolen identity refund fraud; and 

(3) procedures for implementing and accomplishing the 

standards described in paragraphs (1) and (2), and measures 

for evaluating such procedures and determining whether such 

standards have been successfully implemented. 

SEC. 2009. INCREASED PENALTY FOR IMPROPER DISCLOSURE OR USE 

OF INFORMATION BY PREPARERS OF RETURNS. 

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

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

(c) and (d), respectively; and 

(2) by inserting after subsection (a) the following new subsection: 

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

RELATING TO IDENTITY THEFT.— 

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

described in subsection (a) that is made in connection with 

a crime relating to the misappropriation of another person’s 

taxpayer identity (as defined in section 6103(b)(6)), whether 

or not such crime involves any tax filing, subsection (a) shall 

be applied— 

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

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

‘‘(2) SEPARATE APPLICATION OF TOTAL PENALTY LIMITATION.—The limitation on the total amount of the penalty under 

subsection (a) shall be applied separately with respect to disclosures or uses to which this subsection applies and to which 

it does not apply.’’. 

(b) CRIMINAL PENALTY.—Section 7216(a) is amended by striking 

‘‘$1,000’’ and inserting ‘‘$1,000 ($100,000 in the case of a disclosure 

or use to which section 6713(b) applies)’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall apply to disclosures or uses on or after the date of the 

enactment of this Act. 
H. R. 3151—28 

Subtitle B—Development of Information 

Technology 

SEC. 2101. MANAGEMENT OF INTERNAL REVENUE SERVICE INFORMATION TECHNOLOGY. 

(a) DUTIES AND RESPONSIBILITIES OF INTERNAL REVENUE

SERVICE CHIEF INFORMATION OFFICER.—Section 7803, as amended 

by section 1001, is amended by adding at the end the following 

new subsection: 

‘‘(f) INTERNAL REVENUE SERVICE CHIEF INFORMATION

OFFICER.— 

‘‘(1) IN GENERAL.—There shall be in the Internal Revenue 

Service an Internal Revenue Service Chief Information Officer 

(hereafter referred to in this subsection as the ‘IRS CIO’) who 

shall be appointed by the Commissioner of Internal Revenue. 

‘‘(2) CENTRALIZED RESPONSIBILITY FOR INTERNAL REVENUE

SERVICE INFORMATION TECHNOLOGY.—The Commissioner of 

Internal Revenue (and the Secretary) shall act through the 

IRS CIO with respect to all development, implementation, and 

maintenance of information technology for the Internal Revenue 

Service. Any reference in this subsection to the IRS CIO which 

directs the IRS CIO to take any action, or to assume any 

responsibility, shall be treated as a reference to the Commissioner of Internal Revenue acting through the IRS CIO. 

‘‘(3) GENERAL DUTIES AND RESPONSIBILITIES.—The IRS CIO 

shall— 

‘‘(A) be responsible for the development, implementation, and maintenance of information technology for the 

Internal Revenue Service, 

‘‘(B) ensure that the information technology of the 

Internal Revenue Service is secure and integrated, 

‘‘(C) maintain operational control of all information 

technology for the Internal Revenue Service, 

‘‘(D) be the principal advocate for the information technology needs of the Internal Revenue Service, and 

‘‘(E) consult with the Chief Procurement Officer of the 

Internal Revenue Service to ensure that the information 

technology acquired for the Internal Revenue Service is 

consistent with— 

‘‘(i) the goals and requirements specified in subparagraphs (A) through (D), and 

‘‘(ii) the strategic plan developed under paragraph 

(4). 

‘‘(4) STRATEGIC PLAN.— 

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

implement a multiyear strategic plan for the information 

technology needs of the Internal Revenue Service. Such 

plan shall— 

‘‘(i) include performance measurements of such 

technology and of the implementation of such plan, 

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

architecture of the information technology of the 

Internal Revenue Service, 

‘‘(iii) include and take into account the resources 

needed to accomplish such plan, 
H. R. 3151—29 

‘‘(iv) take into account planned major acquisitions 

of information technology by the Internal Revenue 

Service, and 

‘‘(v) align with the needs and strategic plan of 

the Internal Revenue Service. 

‘‘(B) PLAN UPDATES.—The IRS CIO shall, not less frequently than annually, review and update the strategic 

plan under subparagraph (A) (including the plan for an 

integrated enterprise architecture described in subparagraph (A)(ii)) to take into account the development of new 

information technology and the needs of the Internal Revenue Service. 

‘‘(5) SCOPE OF AUTHORITY.— 

‘‘(A) INFORMATION TECHNOLOGY.—For purposes of this 

subsection, the term ‘information technology’ has the 

meaning given such term by section 11101 of title 40, 

United States Code. 

‘‘(B) INTERNAL REVENUE SERVICE.—Any reference in 

this subsection to the Internal Revenue Service includes 

a reference to all components of the Internal Revenue 

Service, including— 

‘‘(i) the Office of the Taxpayer Advocate, 

‘‘(ii) the Criminal Investigation Division of the 

Internal Revenue Service, and 

‘‘(iii) except as otherwise provided by the Secretary 

with respect to information technology related to matters described in subsection (b)(3)(B), the Office of the 

Chief Counsel.’’. 

(b) INDEPENDENT VERIFICATION AND VALIDATION OF THE CUSTOMER ACCOUNT DATA ENGINE 2 AND ENTERPRISE CASE MANAGEMENT SYSTEM.— 

(1) IN GENERAL.—The Commissioner of Internal Revenue 

shall enter into a contract with an independent reviewer to 

verify and validate the implementation plans (including the 

performance milestones and cost estimates included in such 

plans) developed for the Customer Account Data Engine 2 

and the Enterprise Case Management System. 

(2) DEADLINE FOR COMPLETION.—Such contract shall 

require that such verification and validation be completed not 

later than the date which is 1 year after the date of the 

enactment of this Act. 

(3) APPLICATION TO PHASES OF CADE 2.— 

(A) IN GENERAL.—Paragraphs (1) and (2) shall not 

apply to phase 1 of the Customer Account Data Engine 

2 and shall apply separately to each other phase. 

(B) DEADLINE FOR COMPLETING PLANS.—Not later than 

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

Commissioner of Internal Revenue shall complete the 

development of plans for all phases of the Customer 

Account Data Engine 2. 

(C) DEADLINE FOR COMPLETION OF VERIFICATION AND

VALIDATION OF PLANS.—In the case of any phase after 

phase 2 of the Customer Account Data Engine 2, paragraph 

(2) shall be applied by substituting ‘‘the date on which 

the plan for such phase was completed’’ for ‘‘the date of 

the enactment of this Act’’. 
H. R. 3151—30 

(c) COORDINATION OF IRS CIO AND CHIEF PROCUREMENT

OFFICER OF THE INTERNAL REVENUE SERVICE.— 

(1) IN GENERAL.—The Chief Procurement Officer of the 

Internal Revenue Service shall— 

(A) identify all significant IRS information technology 

acquisitions and provide written notification to the Internal 

Revenue Service Chief Information Officer (hereafter 

referred to in this subsection as the ‘‘IRS CIO’’) of each 

such acquisition in advance of such acquisition, and 

(B) regularly consult with the IRS CIO regarding 

acquisitions of information technology for the Internal Revenue Service, including meeting with the IRS CIO 

regarding such acquisitions upon request. 

(2) SIGNIFICANT IRS INFORMATION TECHNOLOGY ACQUISITIONS.—For purposes of this subsection, the term ‘‘significant 

IRS information technology acquisitions’’ means— 

(A) any acquisition of information technology for the 

Internal Revenue Service in excess of $1 million; and 

(B) such other acquisitions of information technology 

for the Internal Revenue Service (or categories of such 

acquisitions) as the IRS CIO, in consultation with the 

Chief Procurement Officer of the Internal Revenue Service, 

may identify. 

(3) SCOPE.—Terms used in this subsection which are also 

used in section 7803(f) of the Internal Revenue Code of 1986 

(as added by subsection (a)) shall have the same meaning 

as when used in such section. 

SEC. 2102. INTERNET PLATFORM FOR FORM 1099 FILINGS. 

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

of the Treasury or the Secretary’s delegate (hereafter referred to 

in this section as the ‘‘Secretary’’) shall make available an internet 

website or other electronic media, with a user interface and 

functionality similar to the Business Services Online Suite of Services provided by the Social Security Administration, that provides 

access to resources and guidance provided by the Internal Revenue 

Service and allows persons to— 

(1) prepare and file Forms 1099; 

(2) prepare Forms 1099 for distribution to recipients other 

than the Internal Revenue Service; and 

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

Forms 1099. 

(b) ELECTRONIC SERVICES TREATED AS SUPPLEMENTAL; APPLICATION OF SECURITY STANDARDS.—The Secretary shall ensure that 

the services described in subsection (a)— 

(1) are a supplement to, and not a replacement for, other 

services provided by the Internal Revenue Service to taxpayers; 

and 

(2) comply with applicable security standards and guidelines. 

SEC. 2103. STREAMLINED CRITICAL PAY AUTHORITY FOR INFORMATION TECHNOLOGY POSITIONS. 

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

adding at the end the following new section: 
H. R. 3151—31 

‘‘SEC. 7812. STREAMLINED CRITICAL PAY AUTHORITY FOR INFORMATION TECHNOLOGY POSITIONS. 

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

of the information technology operations of the Internal Revenue 

Service— 

‘‘(1) section 9503 of title 5, United States Code, shall be 

applied— 

‘‘(A) by substituting ‘during the period beginning on 

the date of the enactment of section 7812 of the Internal 

Revenue Code of 1986, and ending on September 30, 2025’ 

for ‘Before September 30, 2013 in subsection (a)’, 

‘‘(B) without regard to subparagraph (B) of subsection 

(a)(1), and 

‘‘(C) by substituting ‘the date of the enactment of the 

Taxpayer First Act’ for ‘June 1, 1998’ in subsection (a)(6), 

‘‘(2) section 9504 of such title 5 shall be applied by substituting ‘During the period beginning on the date of the enactment of section 7812 of the Internal Revenue Code of 1986, 

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

2013’ each place it appears in subsections (a) and (b), and 

‘‘(3) section 9505 of such title shall be applied— 

‘‘(A) by substituting ‘During the period beginning on 

the date of the enactment of section 7812 of the Internal 

Revenue Code of 1986, and ending on September 30, 2025’ 

for ‘Before September 30, 2013’ in subsection (a), and 

‘‘(B) by substituting ‘the information technology operations’ for ‘significant functions’ in subsection (a).’’. 

(b) CLERICAL AMENDMENT.—The table of sections for subchapter 

A of chapter 80 is amended by adding at the end the following 

new item: 

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

Subtitle C—Modernization of ConsentBased Income Verification System 

SEC. 2201. DISCLOSURE OF TAXPAYER INFORMATION FOR THIRDPARTY INCOME VERIFICATION. 

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

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

the Treasury or the Secretary’s delegate (hereafter referred to in 

this section as the ‘‘Secretary’’) shall implement a program to ensure 

that any qualified disclosure— 

(1) is fully automated and accomplished through the internet; and 

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

(b) QUALIFIED DISCLOSURE.—For purposes of this section, the 

term ‘‘qualified disclosure’’ means a disclosure under section 6103(c) 

of the Internal Revenue Code of 1986 of returns or return information by the Secretary to a person seeking to verify the income 

or creditworthiness of a taxpayer who is a borrower in the process 

of a loan application. 

(c) APPLICATION OF SECURITY STANDARDS.—The Secretary shall 

ensure that the program described in subsection (a) complies with 

applicable security standards and guidelines. 
H. R. 3151—32 

(d) USER FEE.— (1) IN GENERAL.—During the 2-year period beginning on 

the first day of the sixth calendar month beginning after the 

date of the enactment of this Act, the Secretary shall assess 

and collect a fee for qualified disclosures (in addition to any 

other fee assessed and collected for such disclosures) at such 

rates as the Secretary determines are sufficient to cover the 

costs related to implementing the program described in subsection (a), including the costs of any necessary infrastructure 

or technology. 

(2) DEPOSIT OF COLLECTIONS.—Amounts received from fees 

assessed and collected under paragraph (1) shall be deposited 

in, and credited to, an account solely for the purpose of carrying 

out the activities described in subsection (a). Such amounts 

shall be available to carry out such activities without need 

of further appropriation and without fiscal year limitation. 

SEC. 2202. LIMIT REDISCLOSURES AND USES OF CONSENT-BASED 

DISCLOSURES OF TAX RETURN INFORMATION. 

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

the end the following: ‘‘Persons designated by the taxpayer under 

this subsection to receive return information shall not use the 

information for any purpose other than the express purpose for 

which consent was granted and shall not disclose return information 

to any other person without the express permission of, or request 

by, the taxpayer.’’. 

(b) APPLICATION OF PENALTIES.—Section 6103(a)(3) is amended 

by inserting ‘‘subsection (c),’’ after ‘‘return information under’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall apply to disclosures made after the date which is 180 days 

after the date of the enactment of this Act. 

Subtitle D—Expanded Use of Electronic 

Systems 

SEC. 2301. ELECTRONIC FILING OF RETURNS. 

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

‘‘250’’ and inserting ‘‘the applicable number of’’. 

(b) APPLICABLE NUMBER.—Section 6011(e) is amended by 

striking paragraph (5) and inserting the following new paragraphs: 

‘‘(5) APPLICABLE NUMBER.— ‘‘(A) IN GENERAL.—For purposes of paragraph (2)(A), 

the applicable number shall be— 

‘‘(i) except as provided in subparagraph (B), in 

the case of calendar years before 2021, 250, 

‘‘(ii) in the case of calendar year 2021, 100, and 

‘‘(iii) in the case of calendar years after 2021, 10. 

‘‘(B) SPECIAL RULE FOR PARTNERSHIPS FOR 2018, 2019, 

2020, AND 2021.—In the case of a partnership, for any calendar year before 2022, the applicable number shall be— 

‘‘(i) in the case of calendar year 2018, 200, 

‘‘(ii) in the case of calendar year 2019, 150, 

‘‘(iii) in the case of calendar year 2020, 100, and 

‘‘(iv) in the case of calendar year 2021, 50. 

‘‘(6) PARTNERSHIPS REQUIRED TO FILE ON MAGNETIC

MEDIA.—Notwithstanding paragraph (2)(A), the Secretary shall 
H. R. 3151—33 

require partnerships having more than 100 partners to file 

returns on magnetic media.’’. 

(c) RETURNS FILED BY A TAX RETURN PREPARER.—Section 

6011(e)(3) is amended by adding at the end the following new 

subparagraph: 

‘‘(D) EXCEPTION FOR CERTAIN PREPARERS LOCATED IN

AREAS WITHOUT INTERNET ACCESS.—The Secretary may 

waive the requirement of subparagraph (A) if the Secretary 

determines, on the basis of an application by the tax return 

preparer, that the preparer cannot meet such requirement 

by reason of being located in a geographic area which 

does not have access to internet service (other than dialup or satellite service).’’. 

(d) CONFORMING AMENDMENT.—Section 6724(c) is amended by 

striking ‘‘250 information returns (more than 100 information 

returns in the case of a partnership having more than 100 partners)’’ 

and inserting ‘‘the applicable number (determined under section 

6011(e)(5) with respect to the calendar year to which such returns 

relate) of information returns’’. 

(e) EFFECTIVE DATE.—The amendments made by this section 

shall take effect on the date of the enactment of this Act. 

SEC. 2302. UNIFORM STANDARDS FOR THE USE OF ELECTRONIC SIGNATURES FOR DISCLOSURE AUTHORIZATIONS TO, AND 

OTHER AUTHORIZATIONS OF, PRACTITIONERS. 

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

‘‘(3) PUBLISHED GUIDANCE.— 

‘‘(A) IN GENERAL.—The Secretary shall publish guidance as appropriate to define and implement any waiver 

of the signature requirements or any method adopted under 

paragraph (1). 

‘‘(B) ELECTRONIC SIGNATURES FOR DISCLOSURE

AUTHORIZATIONS TO, AND OTHER AUTHORIZATIONS OF, 

PRACTITIONERS.—Not later than 6 months after the date 

of the enactment of this subparagraph, the Secretary shall 

publish guidance to establish uniform standards and procedures for the acceptance of taxpayers’ signatures appearing 

in electronic form with respect to any request for disclosure 

of a taxpayer’s return or return information under section 

6103(c) to a practitioner or any power of attorney granted 

by a taxpayer to a practitioner. 

‘‘(C) PRACTITIONER.—For purposes of subparagraph (B), 

the term ‘practitioner’ means any individual in good 

standing who is regulated under section 330 of title 31, 

United States Code.’’. 

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

Section 6311(d)(2) is amended by adding at the end the following: ‘‘The preceding sentence shall not apply to the extent that 

the Secretary ensures that any such fee or other consideration 

is fully recouped by the Secretary in the form of fees paid to 

the Secretary by persons paying taxes imposed under subtitle A 

with credit, debit, or charge cards pursuant to such contract. Notwithstanding the preceding sentence, the Secretary shall seek to 

minimize the amount of any fee or other consideration that the 

Secretary pays under any such contract.’’. 
H. R. 3151—34 

SEC. 2304. AUTHENTICATION OF USERS OF ELECTRONIC SERVICES 

ACCOUNTS. 

Beginning 180 days after the date of the enactment of this 

Act, the Secretary of the Treasury (or the Secretary’s delegate) 

shall verify the identity of any individual opening an e-Services 

account with the Internal Revenue Service before such individual 

is able to use the e-Services tools. 

Subtitle E—Other Provisions 

SEC. 2401. REPEAL OF PROVISION REGARDING CERTAIN TAX COMPLIANCE PROCEDURES AND REPORTS. 

Section 2004 of the Internal Revenue Service Restructuring 

and Reform Act of 1998 (26 U.S.C. 6012 note) is repealed. 

SEC. 2402. COMPREHENSIVE TRAINING STRATEGY. 

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

Act, the Commissioner of Internal Revenue shall submit to Congress 

a written report providing a comprehensive training strategy for 

employees of the Internal Revenue Service, including— 

(1) a plan to streamline current training processes, 

including an assessment of the utility of further consolidating 

internal training programs, technology, and funding; 

(2) a plan to develop annual training regarding taxpayer 

rights, including the role of the Office of the Taxpayer Advocate, 

for employees that interface with taxpayers and the direct 

managers of such employees; 

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

(4) proposals to— 

(A) focus employee training on early, fair, and efficient 

resolution of taxpayer disputes for employees that interface 

with taxpayers and the direct managers of such employees; 

and 

(B) ensure consistency of skill development and 

employee evaluation throughout the Internal Revenue 

Service; and 

(5) a thorough assessment of the funding necessary to 

implement such strategy. 

TITLE III—MISCELLANEOUS 

PROVISIONS 

Subtitle A—Reform of Laws Governing 

Internal Revenue Service Employees 

SEC. 3001. PROHIBITION ON REHIRING ANY EMPLOYEE OF THE 

INTERNAL REVENUE SERVICE WHO WAS INVOLUNTARILY 

SEPARATED FROM SERVICE FOR MISCONDUCT. 

(a) IN GENERAL.—Section 7804 is amended by adding at the 

end the following new subsection: 

‘‘(d) PROHIBITION ON REHIRING EMPLOYEES INVOLUNTARILY

SEPARATED.—The Commissioner may not hire any individual previously employed by the Commissioner who was removed for misconduct under this subchapter or chapter 43 or chapter 75 of 
H. R. 3151—35 

title 5, United States Code, or whose employment was terminated 

under section 1203 of the Internal Revenue Service Restructuring 

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

(b) EFFECTIVE DATE.—The amendment made by subsection (a) 

shall apply with respect to the hiring of employees after the date 

of the enactment of this Act. 

SEC. 3002. NOTIFICATION OF UNAUTHORIZED INSPECTION OR DISCLOSURE OF RETURNS AND RETURN INFORMATION. 

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

by adding at the end the following new sentences: ‘‘The Secretary 

shall also notify such taxpayer if the Internal Revenue Service 

or a Federal or State agency (upon notice to the Secretary by 

such Federal or State agency) proposes an administrative determination as to disciplinary or adverse action against an employee 

arising from the employee’s unauthorized inspection or disclosure 

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

in this subsection shall include the date of the unauthorized inspection or disclosure and the rights of the taxpayer under such administrative determination.’’. 

(b) EFFECTIVE DATE.—The amendment made by this section 

shall apply to determinations proposed after the date which is 

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

Subtitle B—Provisions Relating to Exempt 

Organizations 

SEC. 3101. MANDATORY E-FILING BY EXEMPT ORGANIZATIONS. 

(a) IN GENERAL.—Section 6033 is amended by redesignating 

subsection (n) as subsection (o) and by inserting after subsection 

(m) the following new subsection: 

‘‘(n) MANDATORY ELECTRONIC FILING.—Any organization 

required to file a return under this section shall file such return 

in electronic form.’’. 

(b) OTHER REPORTS AND RETURNS.— 

(1) POLITICAL ORGANIZATIONS.—Section 527(j)(7) is 

amended by striking ‘‘if the organization has’’ and all that 

follows through ‘‘such calendar year’’. 

(2) UNRELATED BUSINESS INCOME TAX RETURNS.—Section 

6011 is amended by redesignating subsection (h) as subsection 

(i) and by inserting after subsection (g) the following new 

subsection: 

‘‘(h) MANDATORY E-FILING OF UNRELATED BUSINESS INCOME

TAX RETURN.—Any organization required to file an annual return 

under this section which relates to any tax imposed by section 

511 shall file such return in electronic form.’’. 

(c) INSPECTION OF ELECTRONICALLY FILED ANNUAL RETURNS.— Section 6104(b) is amended by adding at the end the following: 

‘‘Any annual return required to be filed electronically under section 

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

as soon as practicable in a machine readable format.’’. 

(d) EFFECTIVE DATE.— 

(1) IN GENERAL.—Except as provided in paragraph (2), the 

amendments made by this section shall apply to taxable years 

beginning after the date of the enactment of this Act. 

(2) TRANSITIONAL RELIEF.— 
H. R. 3151—36 

(A) SMALL ORGANIZATIONS.— 

(i) IN GENERAL.—In the case of any small organizations, or any other organizations for which the Secretary of the Treasury or the Secretary’s delegate (hereafter referred to in this paragraph as the ‘‘Secretary’’) 

determines the application of the amendments made 

by this section would cause undue burden without 

a delay, the Secretary may delay the application of 

such amendments, but such delay shall not apply to 

any taxable year beginning on or after the date that 

is 2 years after the enactment of this Act. 

(ii) SMALL ORGANIZATION.—For purposes of clause 

(i), the term ‘‘small organization’’ means any organization— 

(I) the gross receipts of which for the taxable 

year are less than $200,000; and 

(II) the aggregate gross assets of which at 

the end of the taxable year are less than $500,000. 

(B) ORGANIZATIONS FILING FORM 990–T.—In the case 

of any organization described in section 511(a)(2) of the 

Internal Revenue Code of 1986 which is subject to the 

tax imposed by section 511(a)(1) of such Code on its unrelated business taxable income, or any organization required 

to file a return under section 6033 of such Code and include 

information under subsection (e) thereof, the Secretary may 

delay the application of the amendments made by this 

section, but such delay shall not apply to any taxable 

year beginning on or after the date that is 2 years after 

the enactment of this Act. 

SEC. 3102. NOTICE REQUIRED BEFORE REVOCATION OF TAX-EXEMPT 

STATUS FOR FAILURE TO FILE RETURN. 

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

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

‘‘(A) NOTICE.—If an organization described in subsection (a)(1) or (i) fails to file the annual return or notice 

required under either subsection for 2 consecutive years, 

the Secretary shall notify the organization— 

‘‘(i) that the Internal Revenue Service has no 

record of such a return or notice from such organization 

for 2 consecutive years, and 

‘‘(ii) about the revocation that will occur under 

subparagraph (B) if the organization fails to file such 

a return or notice by the due date for the next such 

return or notice required to be filed. 

The notification under the preceding sentence shall include 

information about how to comply with the filing requirements under subsections (a)(1) and (i). 

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

(b) EFFECTIVE DATE.—The amendment made by this section 

shall apply to failures to file returns or notices for 2 consecutive 

years if the return or notice for the second year is required to 

be filed after December 31, 2019. 
H. R. 3151—37 

Subtitle C—Revenue Provision 

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

(a) IN GENERAL.—The second sentence of subsection (a) of section 6651 is amended by striking ‘‘$205’’ and inserting ‘‘$330’’. 

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

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

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

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

(c) EFFECTIVE DATE.—The amendments made by this section 

shall apply to returns required to be filed after December 31, 

2019. 

TITLE IV—BUDGETARY EFFECTS 

SEC. 4001. DETERMINATION OF BUDGETARY EFFECTS. 

The budgetary effects of this Act, for the purpose of complying 

with the Statutory Pay-As-You-Go Act of 2010, shall be determined 

by reference to the latest statement titled ‘‘Budgetary Effects of 

PAYGO Legislation’’ for this Act, submitted for printing in the 

Congressional Record by the Chairman of the House Budget Committee, provided that such statement has been submitted prior 

to the vote on passage. 

Speaker of the House of Representatives. 

Vice President of the United States and

President of the Senate.