In the House of Representatives, U. S., 

December 20, 2018. 

Resolved, That the House agree to the amendment of the 

Senate to the bill (H.R. 88) entitled ‘‘An Act to modify the 

boundary of the Shiloh National Military Park located in 

Tennessee and Mississippi, to establish Parker’s Crossroads 

Battlefield as an affiliated area of the National Park System, 

and for other purposes.’’, with the following 

HOUSE AMENDMENT TO SENATE AMENDMENT: 

In lieu of the matter proposed to be inserted by the 

amendment of the Senate, insert the following: 

1 DIVISION A—RETIREMENT, SAV2 INGS, AND OTHER TAX RE3 LIEF ACT OF 2018 

4 SECTION 1. SHORT TITLE, ETC. 

5 (a) SHORT TITLE.—This division may be cited as the 

6 Retirement, Savings, and Other Tax Relief Act of 2018. 

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

8 expressly provided, whenever in this division an amend9 ment or repeal is expressed in terms of an amendment to, 

10 or repeal of, a section or other provision, the reference shall 

11 be considered to be made to a section or other provision 

12 of the Internal Revenue Code of 1986. 
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1 (c) TABLE OF CONTENTS.—The table of contents for 

2 this division is as follows: 

Sec. 1. Short title, etc. 

TITLE I—DISASTER TAX RELIEF 

Sec. 101. Definitions. 

Sec. 102. Special disaster-related rules for use of retirement funds. 

Sec. 103. Employee retention credit for employers affected by qualified disasters. 

Sec. 104. Other disaster-related tax relief provisions. 

Sec. 105. Treatment of certain possessions. 

Sec. 106. Automatic extension of filing deadline. 

TITLE II—RETIREMENT AND SAVINGS 

Subtitle A—Expanding and Preserving Retirement Savings 

Sec. 201. Multiple employer plans; pooled employer plans. 

Sec. 202. Rules relating to election of safe harbor 401(k) status. 

Sec. 203. Certain taxable non-tuition fellowship and stipend payments treated as 

compensation for IRA purposes. 

Sec. 204. Repeal of maximum age for traditional IRA contributions. 

Sec. 205. Qualified employer plans prohibited from making loans through credit 

cards and other similar arrangements. 

Sec. 206. Portability of lifetime income investments. 

Sec. 207. Treatment of custodial accounts on termination of section 403(b) plans. 

Sec. 208. Clarification of retirement income account rules relating to church-controlled organizations. 

Sec. 209. Increase in 10 percent cap for automatic enrollment safe harbor after 

1st plan year. 

Sec. 210. Increase in credit limitation for small employer pension plan startup 

costs. 

Sec. 211. Small employer automatic enrollment credit. 

Sec. 212. Exemption from required minimum distribution rules for individuals 

with certain account balances. 

Sec. 213. Elective deferrals by members of the Ready Reserve of a reserve component of the Armed Forces. 

Subtitle B—Administrative Improvements 

Sec. 221. Plan adopted by filing due date for year may be treated as in effect 

as of close of year. 

Sec. 222. Modification of nondiscrimination rules to protect older, longer service 

participants. 

Sec. 223. Fiduciary safe harbor for selection of lifetime income provider. 

Sec. 224. Disclosure regarding lifetime income. 

Sec. 225. Modification of PBGC premiums for CSEC plans. 

Subtitle C—Other Savings Provisions 

Sec. 231. Expansion of section 529 plans. 

Sec. 232. Penalty-free withdrawals from retirement plans for individuals in case 

of birth of child or adoption. 
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TITLE III—REPEAL OR DELAY OF CERTAIN HEALTH-RELATED 

TAXES 

Sec. 301. Extension of moratorium on medical device excise tax. 

Sec. 302. Delay in implementation of excise tax on high cost employer-sponsored 

health coverage. 

Sec. 303. Extension of suspension of annual fee on health insurance providers. 

Sec. 304. Repeal of excise tax on indoor tanning services. 

TITLE IV—CERTAIN EXPIRING PROVISIONS 

Sec. 401. Railroad track maintenance credit made permanent. 

Sec. 402. Biodiesel and renewable diesel provisions extended and phased out. 

TITLE V—OTHER PROVISIONS 

Sec. 501. Technical amendments relating to Public Law 115–97. 

Sec. 502. Clarification of treatment of veterans as specified group for purposes of 

the low-income housing tax credit. 

Sec. 503. Clarification of general public use requirement for qualified residential 

rental projects. 

Sec. 504. Floor plan financing applicable to certain trailers and campers. 

Sec. 505. Repeal of increase in unrelated business taxable income by disallowed 

fringe. 

Sec. 506. Certain purchases of employee-owned stock disregarded for purposes of 

foundation tax on excess business holdings. 

Sec. 507. Allowing 501(c)(3) organization to make statements relating to political 

campaign in ordinary course of carrying out its tax exempt purpose. 

Sec. 508. Charitable organizations permitted to make collegiate housing and infrastructure grants. 

Sec. 509. Restriction on regulation of contingency fees with respect to tax returns, 

etc. 

1 TITLE I—DISASTER TAX RELIEF 

2 SEC. 101. DEFINITIONS. 

3 For purposes of this title— 

4 (1) GENERAL DEFINITIONS.— 

5 (A) QUALIFIED DISASTER AREA.—The term 

6 ‘‘qualified disaster area’’ means the Hurricane 

7 Florence disaster area; the Hurricane Michael 

8 disaster area; the Typhoon Mangkhut disaster 

9 area; the Typhoon Yutu disaster area; the 

10 Mendocino wildfire disaster area; the Camp and 
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1 Woolsey wildfire disaster area; the Kilauea vol2 canic eruption and earthquakes disaster area; the 

3 Hawaii severe storms, flooding, landslides, and 

4 mudslides disaster area; the Wisconsin severe 

5 storms, tornadoes, straight-line winds, flooding, 

6 and landslides disaster area; the Texas severe 

7 storms and flooding disaster area; the North 

8 Carolina tornado and severe storms disaster 

9 area; the Indiana severe storms and flooding dis10 aster area; the Alabama severe storms and torna11 does disaster area; and the Tropical Storm Gita 

12 disaster area. 

13 (B) QUALIFIED DISASTER ZONE.—The term 

14 ‘‘qualified disaster zone’’ means that portion of 

15 any qualified disaster area which is determined 

16 by the President to warrant individual or indi17 vidual and public assistance from the Federal 

18 Government under the Robert T. Stafford Dis19 aster Relief and Emergency Assistance Act by 

20 reason of the qualified disaster with respect to 

21 such disaster area. 

22 (C) QUALIFIED DISASTER.—The term 

23 ‘‘qualified disaster’’ means, with respect to any 

24 qualified disaster area, the disaster by reason of 
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1 which a major disaster was declared with respect 

2 to such area. 

3 (2) HURRICANE FLORENCE.— 

4 (A) HURRICANE FLORENCE DISASTER

5 AREA.—The term ‘‘Hurricane Florence disaster 

6 area’’ means an area with respect to which a 

7 major disaster has been declared by the President 

8 on or before December 17, 2018, under section 

9 401 of the Robert T. Stafford Disaster Relief and 

10 Emergency Assistance Act by reason of Hurri11 cane Florence. 

12 (B) INCIDENT BEGINNING DATE.—The inci13 dent beginning date of Hurricane Florence is 

14 September 7, 2018. 

15 (C) INCIDENT PERIOD.—The incident pe16 riod of Hurricane Florence is the period begin17 ning on the incident beginning date of Hurri18 cane Florence and ending on October 8, 2018. 

19 (3) HURRICANE MICHAEL.— 

20 (A) HURRICANE MICHAEL DISASTER

21 AREA.—The term ‘‘Hurricane Michael disaster 

22 area’’ means an area with respect to which a 

23 major disaster has been declared by the President 

24 on or before December 17, 2018, under section 

25 401 of the Robert T. Stafford Disaster Relief and 
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1 Emergency Assistance Act by reason of Hurri2 cane Michael. 

3 (B) INCIDENT BEGINNING DATE.—The inci4 dent beginning date of Hurricane Michael is Oc5 tober 7, 2018. 

6 (C) INCIDENT PERIOD.—The incident pe7 riod of Hurricane Michael is the period begin8 ning on the incident beginning date of Hurri9 cane Michael and ending on October 23, 2018. 

10 (4) TYPHOON MANGKHUT.— 

11 (A) TYPHOON MANGKHUT DISASTER

12 AREA.—The term ‘‘Typhoon Mangkhut disaster 

13 area’’ means an area with respect to which a 

14 major disaster has been declared by the President 

15 on or before December 17, 2018, under section 

16 401 of the Robert T. Stafford Disaster Relief and 

17 Emergency Assistance Act by reason of Typhoon 

18 Mangkhut. 

19 (B) INCIDENT BEGINNING DATE.—The inci20 dent beginning date of Typhoon Mangkhut is 

21 September 10, 2018. 

22 (C) INCIDENT PERIOD.—The incident pe23 riod of Typhoon Mangkhut is the period begin24 ning on the incident beginning date of Typhoon 

25 Mangkhut and ending on September 11, 2018. 
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1 (5) TYPHOON YUTU.— 

2 (A) TYPHOON YUTU DISASTER AREA.—The 

3 term ‘‘Typhoon Yutu disaster area’’ means an 

4 area with respect to which a major disaster has 

5 been declared by the President on or before De6 cember 17, 2018, under section 401 of the Robert 

7 T. Stafford Disaster Relief and Emergency As8 sistance Act by reason of Typhoon Yutu. 

9 (B) INCIDENT BEGINNING DATE.—The inci10 dent beginning date of Typhoon Yutu is October 

11 24, 2018. 

12 (C) INCIDENT PERIOD.—The incident pe13 riod of Typhoon Yutu is the period beginning on 

14 the incident beginning date of Typhoon Yutu 

15 and ending on October 26, 2018. 

16 (6) MENDOCINO WILDFIRE.— 

17 (A) MENDOCINO WILDFIRE DISASTER

18 AREA.—The term ‘‘Mendocino wildfire disaster 

19 area’’ means an area with respect to which, dur20 ing the period beginning on August 4, 2018, and 

21 ending on December 17, 2018, a major disaster 

22 has been declared by the President under section 

23 401 of the Robert T. Stafford Disaster Relief and 

24 Emergency Assistance Act by reason of the wild25 fire in California commonly known as the 
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1 Mendocino wildfire of 2018 (including the Carr 

2 wildfire of 2018). 

3 (B) INCIDENT BEGINNING DATE.—The inci4 dent beginning date of the wildfires referred to in 

5 subparagraph (A) is July 23, 2018. 

6 (C) INCIDENT PERIOD.—The incident pe7 riod of the wildfires referred to in subparagraph 

8 (A) is the period beginning on the incident be9 ginning date of such wildfires and ending on 

10 September 19, 2018. 

11 (7) CAMP AND WOOLSEY WILDFIRES.— 

12 (A) CAMP AND WOOLSEY WILDFIRE DIS13 ASTER AREA.—The term ‘‘Camp and Woolsey 

14 wildfire disaster area’’ means an area with re15 spect to which, during the period beginning on 

16 November 12, 2018, and ending on December 17, 

17 2018, a major disaster has been declared by the 

18 President under section 401 of the Robert T. 

19 Stafford Disaster Relief and Emergency Assist20 ance Act by reason of the wildfires in California 

21 commonly known as the Camp and Woolsey 

22 wildfires of 2018 (including the Hill wildfire of 

23 2018). 
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1 (B) INCIDENT BEGINNING DATE.—The inci2 dent beginning date of the wildfires referred to in 

3 subparagraph (A) is November 8, 2018. 

4 (C) INCIDENT PERIOD.—The incident pe5 riod of the wildfires referred to in subparagraph 

6 (A) is the period beginning on the incident be7 ginning date of such wildfires and ending on No8 vember 25, 2018. 

9 (8) KILAUEA VOLCANIC ERUPTION AND EARTH10 QUAKES.— 

11 (A) KILAUEA VOLCANIC ERUPTION AND

12 EARTHQUAKES DISASTER AREA.—The term 

13 ‘‘Kilauea volcanic eruption and earthquakes dis14 aster area’’ means an area with respect to which, 

15 during the period beginning on May 11, 2018, 

16 and ending on December 17, 2018, a major dis17 aster has been declared by the President under 

18 section 401 of the Robert T. Stafford Disaster 

19 Relief and Emergency Assistance Act by reason 

20 of the Kilauea volcanic eruption and earthquakes 

21 occurring in Hawaii during the period begin22 ning on May 3, 2018, and ending on August 17, 

23 2018. 

24 (B) INCIDENT BEGINNING DATE.—The inci25 dent beginning date of the volcanic eruption and 
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1 earthquakes referred to in subparagraph (A) is 

2 May 3, 2018. 

3 (C) INCIDENT PERIOD.—The incident pe4 riod of the volcanic eruption and earthquakes re5 ferred to in subparagraph (A) is the period be6 ginning on the incident beginning date with re7 spect to such eruption and earthquakes and end8 ing on August 17, 2018. 

9 (9) HAWAII SEVERE STORMS, FLOODING, LAND10 SLIDES, AND MUDSLIDES.— 

11 (A) HAWAII SEVERE STORMS, FLOODING, 

12 LANDSLIDES, AND MUDSLIDES DISASTER

13 AREA.—The term ‘‘Hawaii severe storms, flood14 ing, landslides, and mudslides disaster area’’ 

15 means an area with respect to which, during the 

16 period beginning on May 8, 2018, and ending on 

17 December 17, 2018, a major disaster has been de18 clared by the President under section 401 of the 

19 Robert T. Stafford Disaster Relief and Emer20 gency Assistance Act by reason of the severe 

21 storms, flooding, landslides, and mudslides oc22 curring in Hawaii during the period beginning 

23 on April 13, 2018, and ending on April 16, 

24 2018. 
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1 (B) INCIDENT BEGINNING DATE.—The inci2 dent beginning date of the severe storms, flood3 ing, landslides, and mudslides referred to in sub4 paragraph (A) is April 13, 2018. 

5 (C) INCIDENT PERIOD.—The incident pe6 riod of the severe storms, flooding, landslides, 

7 and mudslides referred to in subparagraph (A) 

8 is the period beginning on the incident beginning 

9 date with respect to such severe storms, flooding, 

10 landslides, and mudslides and ending on April 

11 16, 2018. 

12 (10) WISCONSIN SEVERE STORMS, TORNADOES, 

13 STRAIGHT-LINE WINDS, FLOODING, AND LAND14 SLIDES.— 

15 (A) WISCONSIN SEVERE STORMS, TORNA16 DOES, STRAIGHT-LINE WINDS, FLOODING, AND

17 LANDSLIDES DISASTER AREA.—The term ‘‘Wis18 consin severe storms, tornadoes, straight-line 

19 winds, flooding, and landslides disaster area’’ 

20 means an area with respect to which, during the 

21 period beginning on October 18, 2018, and end22 ing on December 17, 2018, a major disaster has 

23 been declared by the President under section 401 

24 of the Robert T. Stafford Disaster Relief and 

25 Emergency Assistance Act by reason of the severe 
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1 storms, tornadoes, straight-line winds, flooding, 

2 and landslides occurring in Wisconsin during 

3 the period beginning on August 17, 2018, and 

4 ending on September 14, 2018. 

5 (B) INCIDENT BEGINNING DATE.—The inci6 dent beginning date of the severe storms, torna7 does, straight-line winds, flooding, and landslides 

8 referred to in subparagraph (A) is August 17, 

9 2018. 

10 (C) INCIDENT PERIOD.—The incident pe11 riod of the severe storms, tornadoes, straight-line 

12 winds, flooding, and landslides referred to in 

13 subparagraph (A) is the period beginning on the 

14 incident beginning date with respect to such se15 vere storms, tornadoes, straight-line winds, flood16 ing, and landslides and ending on September 14, 

17 2018. 

18 (11) TEXAS SEVERE STORMS AND FLOODING.— 

19 (A) TEXAS SEVERE STORMS AND FLOODING

20 DISASTER AREA.—The term ‘‘Texas severe storms 

21 and flooding disaster area’’ means an area with 

22 respect to which, during the period beginning on 

23 July 6, 2018, and ending on December 17, 2018, 

24 a major disaster has been declared by the Presi25 dent under section 401 of the Robert T. Stafford 
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1 Disaster Relief and Emergency Assistance Act by 

2 reason of the severe storms and flooding occur3 ring in Texas during the period beginning on 

4 June 19, 2018, and ending on July 13, 2018. 

5 (B) INCIDENT BEGINNING DATE.—The inci6 dent beginning date of the severe storms and 

7 flooding referred to in subparagraph (A) is June 

8 19, 2018. 

9 (C) INCIDENT PERIOD.—The incident pe10 riod of the severe storms and flooding referred to 

11 in subparagraph (A) is the period beginning on 

12 the incident beginning date with respect to such 

13 severe storms and flooding and ending on July 

14 13, 2018. 

15 (12) NORTH CAROLINA TORNADO AND SEVERE

16 STORMS.— 

17 (A) NORTH CAROLINA TORNADO AND SE18 VERE STORMS DISASTER AREA.—The term 

19 ‘‘North Carolina tornado and severe storms dis20 aster area’’ means an area with respect to which, 

21 during the period beginning on May 8, 2018, 

22 and ending on December 17, 2018, a major dis23 aster has been declared by the President under 

24 section 401 of the Robert T. Stafford Disaster 

25 Relief and Emergency Assistance Act by reason 
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1 of the tornado and severe storms occurring in 

2 North Carolina on April 15, 2018. 

3 (B) INCIDENT BEGINNING DATE; INCIDENT

4 PERIOD.—The incident beginning date, and the 

5 incident period, of the tornado and severe storms 

6 referred to in subparagraph (A) is April 15, 

7 2018. 

8 (13) INDIANA SEVERE STORMS AND FLOODING.— 

9 (A) INDIANA SEVERE STORMS AND FLOOD10 ING DISASTER AREA.—The term ‘‘Indiana severe 

11 storms and flooding disaster area’’ means an 

12 area with respect to which, during the period be13 ginning on May 4, 2018, and ending on Decem14 ber 17, 2018, a major disaster has been declared 

15 by the President under section 401 of the Robert 

16 T. Stafford Disaster Relief and Emergency As17 sistance Act by reason of the severe storms and 

18 flooding occurring in Indiana during the period 

19 beginning on February 14, 2018, and ending on 

20 March 4, 2018. 

21 (B) INCIDENT BEGINNING DATE.—The inci22 dent beginning date of the severe storms and 

23 flooding referred to in subparagraph (A) is Feb24 ruary 14, 2018. 
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1 (C) INCIDENT PERIOD.—The incident pe2 riod of the severe storms and flooding referred to 

3 in subparagraph (A) is the period beginning on 

4 the incident beginning date with respect to such 

5 severe storms and flooding and ending on March 

6 4, 2018. 

7 (14) ALABAMA SEVERE STORMS AND TORNA8 DOES.— 

9 (A) ALABAMA SEVERE STORMS AND TORNA10 DOES DISASTER AREA.—The term ‘‘Alabama se11 vere storms and tornadoes disaster area’’ means 

12 an area with respect to which, during the period 

13 beginning on April 26, 2018, and ending on De14 cember 17, 2018, a major disaster has been de15 clared by the President under section 401 of the 

16 Robert T. Stafford Disaster Relief and Emer17 gency Assistance Act by reason of the severe 

18 storms and tornadoes occurring in Alabama dur19 ing the period beginning on March 19, 2018, and 

20 ending on March 20, 2018. 

21 (B) INCIDENT BEGINNING DATE.—The inci22 dent beginning date of the severe storms and tor23 nadoes referred to in subparagraph (A) is March 

24 19, 2018. 
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1 (C) INCIDENT PERIOD.—The incident pe2 riod of the severe storms and tornadoes referred 

3 to in subparagraph (A) is the period beginning 

4 on the incident beginning date with respect to 

5 such severe storms and tornadoes and ending on 

6 March 20, 2018. 

7 (15) TROPICAL STORM GITA.— 

8 (A) TROPICAL STORM GITA DISASTER

9 AREA.—The term ‘‘Tropical Storm Gita disaster 

10 area’’ means an area with respect to which a 

11 major disaster has been declared by the President 

12 on or before December 17, 2018, under section 

13 401 of the Robert T. Stafford Disaster Relief and 

14 Emergency Assistance Act by reason of Tropical 

15 Storm Gita. 

16 (B) INCIDENT BEGINNING DATE.—The inci17 dent beginning date of Tropical Storm Gita is 

18 February 7, 2018. 

19 (C) INCIDENT PERIOD.—The incident pe20 riod of Tropical Storm Gita is the period begin21 ning on the incident beginning date of Tropical 

22 Storm Gita and ending on February 12, 2018. 
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1 SEC. 102. SPECIAL DISASTER-RELATED RULES FOR USE OF 

2 RETIREMENT FUNDS. 

3 (a) TAX-FAVORED WITHDRAWALS FROM RETIREMENT

4 PLANS.— 

5 (1) IN GENERAL.—Section 72(t) of the Internal 

6 Revenue Code of 1986 shall not apply to any quali7 fied disaster distribution. 

8 (2) AGGREGATE DOLLAR LIMITATION.— 

9 (A) IN GENERAL.—For purposes of this sub10 section, the aggregate amount of distributions re11 ceived by an individual which may be treated as 

12 qualified disaster distributions for any taxable 

13 year shall not exceed the excess (if any) of— 

14 (i) $100,000, over 

15 (ii) the aggregate amounts treated as 

16 qualified disaster distributions received by 

17 such individual for all prior taxable years. 

18 (B) TREATMENT OF PLAN DISTRIBU19 TIONS.—If a distribution to an individual would 

20 (without regard to subparagraph (A)) be a quali21 fied disaster distribution, a plan shall not be 

22 treated as violating any requirement of the In23 ternal Revenue Code of 1986 merely because the 

24 plan treats such distribution as a qualified dis25 aster distribution, unless the aggregate amount 

26 of such distributions from all plans maintained 
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1 by the employer (and any member of any con2 trolled group which includes the employer) to 

3 such individual exceeds $100,000. 

4 (C) CONTROLLED GROUP.—For purposes of 

5 subparagraph (B), the term ‘‘controlled group’’ 

6 means any group treated as a single employer 

7 under subsection (b), (c), (m), or (o) of section 

8 414 of the Internal Revenue Code of 1986. 

9 (D) SPECIAL RULE FOR INDIVIDUALS AF10 FECTED BY MORE THAN ONE DISASTER.—The 

11 limitation of subparagraph (A) shall be applied 

12 separately with respect to distributions made 

13 with respect to each qualified disaster which is 

14 described in a separate paragraph of section 101. 

15 (3) AMOUNT DISTRIBUTED MAY BE REPAID.— 

16 (A) IN GENERAL.—Any individual who re17 ceives a qualified disaster distribution may, at 

18 any time during the 3-year period beginning on 

19 the day after the date on which such distribution 

20 was received, make 1 or more contributions in 

21 an aggregate amount not to exceed the amount 

22 of such distribution to an eligible retirement 

23 plan of which such individual is a beneficiary 

24 and to which a rollover contribution of such dis25 tribution could be made under section 402(c), 
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1 403(a)(4), 403(b)(8), 408(d)(3), or 457(e)(16), of 

2 the Internal Revenue Code of 1986, as the case 

3 may be. 

4 (B) TREATMENT OF REPAYMENTS OF DIS5 TRIBUTIONS FROM ELIGIBLE RETIREMENT PLANS

6 OTHER THAN IRAS.—For purposes of the Inter7 nal Revenue Code of 1986, if a contribution is 

8 made pursuant to subparagraph (A) with respect 

9 to a qualified disaster distribution from an eligi10 ble retirement plan other than an individual re11 tirement plan, then the taxpayer shall, to the ex12 tent of the amount of the contribution, be treated 

13 as having received the qualified disaster distribu14 tion in an eligible rollover distribution (as de15 fined in section 402(c)(4) of such Code) and as 

16 having transferred the amount to the eligible re17 tirement plan in a direct trustee to trustee trans18 fer within 60 days of the distribution. 

19 (C) TREATMENT OF REPAYMENTS OF DIS20 TRIBUTIONS FROM IRAS.—For purposes of the 

21 Internal Revenue Code of 1986, if a contribution 

22 is made pursuant to subparagraph (A) with re23 spect to a qualified disaster distribution from an 

24 individual retirement plan (as defined by section 

25 7701(a)(37) of such Code), then, to the extent of 
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1 the amount of the contribution, the qualified dis2 aster distribution shall be treated as a distribu3 tion described in section 408(d)(3) of such Code 

4 and as having been transferred to the eligible re5 tirement plan in a direct trustee to trustee trans6 fer within 60 days of the distribution. 

7 (4) DEFINITIONS.—For purposes of this sub8 section— 

9 (A) QUALIFIED DISASTER DISTRIBUTION.— 

10 Except as provided in paragraph (2), the term 

11 ‘‘qualified disaster distribution’’ means any dis12 tribution from an eligible retirement plan made 

13 on or after the incident beginning date of a 

14 qualified disaster and before January 1, 2020, to 

15 an individual whose principal place of abode at 

16 any time during the incident period of such 

17 qualified disaster is located in the qualified dis18 aster area with respect to such qualified disaster 

19 and who has sustained an economic loss by rea20 son of such qualified disaster. 

21 (B) ELIGIBLE RETIREMENT PLAN.—The 

22 term ‘‘eligible retirement plan’’ shall have the 

23 meaning given such term by section 402(c)(8)(B) 

24 of the Internal Revenue Code of 1986. 
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1 (5) INCOME INCLUSION SPREAD OVER 3-YEAR PE2 RIOD.— 

3 (A) IN GENERAL.—In the case of any quali4 fied disaster distribution, unless the taxpayer 

5 elects not to have this paragraph apply for any 

6 taxable year, any amount required to be in7 cluded in gross income for such taxable year 

8 shall be so included ratably over the 3-taxable9 year period beginning with such taxable year. 

10 (B) SPECIAL RULE.—For purposes of sub11 paragraph (A), rules similar to the rules of sub12 paragraph (E) of section 408A(d)(3) of the Inter13 nal Revenue Code of 1986 shall apply. 

14 (6) SPECIAL RULES.— 

15 (A) EXEMPTION OF DISTRIBUTIONS FROM

16 TRUSTEE TO TRUSTEE TRANSFER AND WITH17 HOLDING RULES.—For purposes of sections 

18 401(a)(31), 402(f), and 3405 of the Internal Rev19 enue Code of 1986, qualified disaster distribu20 tions shall not be treated as eligible rollover dis21 tributions. 

22 (B) QUALIFIED DISASTER DISTRIBUTIONS

23 TREATED AS MEETING PLAN DISTRIBUTION RE24 QUIREMENTS.—For purposes the Internal Rev25 enue Code of 1986, a qualified disaster distribu-
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1 tion shall be treated as meeting the requirements 

2 of sections 401(k)(2)(B)(I), 403(b)(7)(A)(ii), 

3 403(b)(11), and 457(d)(1)(A) of such Code. 

4 (b) RECONTRIBUTIONS OF WITHDRAWALS FOR HOME

5 PURCHASES.— 

6 (1) RECONTRIBUTIONS.— 

7 (A) IN GENERAL.—Any individual who re8 ceived a qualified distribution may, during the 

9 applicable period, make 1 or more contributions 

10 in an aggregate amount not to exceed the 

11 amount of such qualified distribution to an eligi12 ble retirement plan (as defined in section 

13 402(c)(8)(B) of the Internal Revenue Code of 

14 1986) of which such individual is a beneficiary 

15 and to which a rollover contribution of such dis16 tribution could be made under section 402(c), 

17 403(a)(4), 403(b)(8), or 408(d)(3), of such Code, 

18 as the case may be. 

19 (B) TREATMENT OF REPAYMENTS.—Rules 

20 similar to the rules of subparagraphs (B) and 

21 (C) of subsection (a)(3) shall apply for purposes 

22 of this subsection. 

23 (2) QUALIFIED DISTRIBUTION.—For purposes of 

24 this subsection, the term ‘‘qualified distribution’’ 

25 means any distribution— 
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1 (A) described in section 401(k)(2)(B)(i)(IV), 

2 403(b)(7)(A)(ii) (but only to the extent such dis3 tribution relates to financial hardship), 

4 403(b)(11)(B), or 72(t)(2)(F), of the Internal 

5 Revenue Code of 1986, 

6 (B) which was to be used to purchase or 

7 construct a principal residence in a qualified 

8 disaster area, but which was not so used on ac9 count of the qualified disaster with respect to 

10 such area, and 

11 (C) which was received on or after January 

12 1, 2018, and before the date which is 30 days 

13 after the last day of the incident period of such 

14 qualified disaster. 

15 (3) APPLICABLE PERIOD.—For purposes of this 

16 subsection, the term ‘‘applicable period’’ means, in the 

17 case of a principal residence in a qualified disaster 

18 area with respect to any qualified disaster, the period 

19 beginning on the incident beginning date of such 

20 qualified disaster and ending on February 28, 2019. 

21 (c) LOANS FROM QUALIFIED PLANS.— 

22 (1) INCREASE IN LIMIT ON LOANS NOT TREATED

23 AS DISTRIBUTIONS.—In the case of any loan from a 

24 qualified employer plan (as defined under section 

25 72(p)(4) of the Internal Revenue Code of 1986) to a 
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1 qualified individual made during the period begin2 ning on the date of the enactment of this Act and end3 ing on December 31, 2019— 

4 (A) clause (i) of section 72(p)(2)(A) of such 

5 Code shall be applied by substituting ‘‘$100,000’’ 

6 for ‘‘$50,000’’, and 

7 (B) clause (ii) of such section shall be ap8 plied by substituting ‘‘the present value of the 

9 nonforfeitable accrued benefit of the employee 

10 under the plan’’ for ‘‘one-half of the present 

11 value of the nonforfeitable accrued benefit of the 

12 employee under the plan’’. 

13 (2) DELAY OF REPAYMENT.—In the case of a 

14 qualified individual (with respect to any qualified 

15 disaster) with an outstanding loan on or after the in16 cident beginning date (of such qualified disaster) from 

17 a qualified employer plan (as defined in section 

18 72(p)(4) of the Internal Revenue Code of 1986)— 

19 (A) if the due date pursuant to subpara20 graph (B) or (C) of section 72(p)(2) of such Code 

21 for any repayment with respect to such loan oc22 curs during the period beginning on the incident 

23 beginning date of such qualified disaster and 

24 ending on December 31, 2019, such due date 

25 shall be delayed for 1 year, 
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1 (B) any subsequent repayments with respect 

2 to any such loan shall be appropriately adjusted 

3 to reflect the delay in the due date under para4 graph (1) and any interest accruing during such 

5 delay, and 

6 (C) in determining the 5-year period and 

7 the term of a loan under subparagraph (B) or 

8 (C) of section 72(p)(2) of such Code, the period 

9 described in subparagraph (A) of this paragraph 

10 shall be disregarded. 

11 (3) QUALIFIED INDIVIDUAL.—For purposes of 

12 this subsection, the term ‘‘qualified individual’’ means 

13 any individual— 

14 (A) whose principal place of abode at any 

15 time during the incident period of any qualified 

16 disaster is located in the qualified disaster area 

17 with respect to such qualified disaster, and 

18 (B) who has sustained an economic loss by 

19 reason of such qualified disaster. 

20 (d) PROVISIONS RELATING TO PLAN AMENDMENTS.— 

21 (1) IN GENERAL.—If this subsection applies to 

22 any amendment to any plan or annuity contract, 

23 such plan or contract shall be treated as being oper24 ated in accordance with the terms of the plan during 

25 the period described in paragraph (2)(B)(i). 
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1 (2) AMENDMENTS TO WHICH SUBSECTION AP2 PLIES.— 

3 (A) IN GENERAL.—This subsection shall 

4 apply to any amendment to any plan or annu5 ity contract which is made— 

6 (i) pursuant to any provision of this 

7 section, or pursuant to any regulation 

8 issued by the Secretary or the Secretary of 

9 Labor under any provision of this section, 

10 and 

11 (ii) on or before the last day of the first 

12 plan year beginning on or after January 1, 

13 2020, or such later date as the Secretary 

14 may prescribe. 

15 In the case of a governmental plan (as defined 

16 in section 414(d) of the Internal Revenue Code 

17 of 1986), clause (ii) shall be applied by sub18 stituting the date which is 2 years after the date 

19 otherwise applied under clause (ii). 

20 (B) CONDITIONS.—This subsection shall not 

21 apply to any amendment unless— 

22 (i) during the period— 

23 (I) beginning on the date that this 

24 section or the regulation described in 

25 subparagraph (A)(i) takes effect (or in 
27 

•HR 88 EAH 

1 the case of a plan or contract amend2 ment not required by this section or 

3 such regulation, the effective date speci4 fied by the plan), and 

5 (II) ending on the date described 

6 in subparagraph (A)(ii) (or, if earlier, 

7 the date the plan or contract amend8 ment is adopted), 

9 the plan or contract is operated as if such plan 

10 or contract amendment were in effect, and 

11 (ii) such plan or contract amendment 

12 applies retroactively for such period. 

13 SEC. 103. EMPLOYEE RETENTION CREDIT FOR EMPLOYERS 

14 AFFECTED BY QUALIFIED DISASTERS. 

15 (a) IN GENERAL.—For purposes of section 38 of the 

16 Internal Revenue Code of 1986, in the case of an eligible 

17 employer, the 2018 qualified disaster employee retention 

18 credit shall be treated as a credit listed in subsection (b) 

19 of such section. For purposes of this subsection, the 2018 

20 qualified disaster employee retention credit for any taxable 

21 year is an amount equal to 40 percent of the qualified wages 

22 with respect to each eligible employee of such employer for 

23 such taxable year. For purposes of the preceding sentence, 

24 the amount of qualified wages which may be taken into ac-
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1 count with respect to any individual shall not exceed 

2 $6,000. 

3 (b) DEFINITIONS.—For purposes of this section— 

4 (1) ELIGIBLE EMPLOYER.—The term ‘‘eligible 

5 employer’’ means any employer— 

6 (A) which conducted an active trade or 

7 business in a qualified disaster zone at any time 

8 during the incident period of the qualified dis9 aster with respect to such qualified disaster zone, 

10 and 

11 (B) with respect to whom the trade or busi12 ness described in subparagraph (A) is inoperable 

13 at any time after the incident beginning date of 

14 such qualified disaster, and before January 1, 

15 2019, as a result of damage sustained by reason 

16 of such qualified disaster. 

17 (2) ELIGIBLE EMPLOYEE.—The term ‘‘eligible 

18 employee’’ means with respect to an eligible employer 

19 an employee whose principal place of employment at 

20 any time during the incident period of the qualified 

21 disaster referred to in paragraph (1) with such eligi22 ble employer was in the qualified disaster zone re23 ferred to in such paragraph. 

24 (3) QUALIFIED WAGES.—The term ‘‘qualified 

25 wages’’ means wages (as defined in section 51(c)(1) of 
29 

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1 the Internal Revenue Code of 1986, but without re2 gard to section 3306(b)(2)(B) of such Code) paid or 

3 incurred by an eligible employer with respect to an 

4 eligible employee at any time after the incident begin5 ning date of the qualified disaster referred to in para6 graph (1), and before January 1, 2019, which occurs 

7 during the period— 

8 (A) beginning on the date on which the 

9 trade or business described in paragraph (1) 

10 first became inoperable at the principal place of 

11 employment of the employee immediately before 

12 the qualified disaster referred to in such para13 graph, and 

14 (B) ending on the date on which such trade 

15 or business has resumed significant operations at 

16 such principal place of employment. 

17 Such term shall include wages paid without regard to 

18 whether the employee performs no services, performs 

19 services at a different place of employment than such 

20 principal place of employment, or performs services 

21 at such principal place of employment before signifi22 cant operations have resumed. 

23 (c) CERTAIN RULES TO APPLY.—For purposes of this 

24 subsection, rules similar to the rules of sections 51(i)(1), 
30 

•HR 88 EAH 

1 52, and 280C(a), of the Internal Revenue Code of 1986, 

2 shall apply. 

3 (d) EMPLOYEE NOT TAKEN INTO ACCOUNT MORE

4 THAN ONCE.—An employee shall not be treated as an eligi5 ble employee for purposes of this subsection for any period 

6 with respect to any employer if such employer is allowed 

7 a credit under section 51 of the Internal Revenue Code of 

8 1986 with respect to such employee for such period. 

9 SEC. 104. OTHER DISASTER-RELATED TAX RELIEF PROVI10 SIONS. 

11 (a) TEMPORARY SUSPENSION OF LIMITATIONS ON

12 CHARITABLE CONTRIBUTIONS.— 

13 (1) IN GENERAL.—Except as otherwise provided 

14 in paragraph (2), subsection (b) of section 170 of the 

15 Internal Revenue Code of 1986 shall not apply to 

16 qualified contributions and such contributions shall 

17 not be taken into account for purposes of applying 

18 subsections (b) and (d) of such section to other con19 tributions. 

20 (2) TREATMENT OF EXCESS CONTRIBUTIONS.— 

21 For purposes of section 170 of the Internal Revenue 

22 Code of 1986— 

23 (A) INDIVIDUALS.—In the case of an indi24 vidual— 
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1 (i) LIMITATION.—Any qualified con2 tribution shall be allowed only to the extent 

3 that the aggregate of such contributions does 

4 not exceed the excess of the taxpayer’s con5 tribution base (as defined in subparagraph 

6 (H) of section 170(b)(1) of such Code) over 

7 the amount of all other charitable contribu8 tions allowed under section 170(b)(1) of 

9 such Code. 

10 (ii) CARRYOVER.—If the aggregate 

11 amount of qualified contributions made in 

12 the contribution year (within the meaning 

13 of section 170(d)(1) of such Code) exceeds 

14 the limitation of clause (i), such excess shall 

15 be added to the excess described in the por16 tion of subparagraph (A) of such section 

17 which precedes clause (i) thereof for pur18 poses of applying such section. 

19 (B) CORPORATIONS.—In the case of a cor20 poration— 

21 (i) LIMITATION.—Any qualified con22 tribution shall be allowed only to the extent 

23 that the aggregate of such contributions does 

24 not exceed the excess of the taxpayer’s tax25 able income (as determined under para-
32 

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1 graph (2) of section 170(b) of such Code) 

2 over the amount of all other charitable con3 tributions allowed under such paragraph. 

4 (ii) CARRYOVER.—Rules similar to the 

5 rules of subparagraph (A)(ii) shall apply 

6 for purposes of this subparagraph. 

7 (3) QUALIFIED CONTRIBUTIONS.— 

8 (A) IN GENERAL.—For purposes of this sub9 section, the term ‘‘qualified contribution’’ means 

10 any charitable contribution (as defined in sec11 tion 170(c) of the Internal Revenue Code of 

12 1986) if— 

13 (i) such contribution— 

14 (I) is paid during the period be15 ginning on February 7, 2018, and end16 ing on December 31, 2018, in cash to 

17 an organization described in section 

18 170(b)(1)(A) of such Code, and 

19 (II) is made for relief efforts in 

20 one or more qualified disaster areas, 

21 (ii) the taxpayer obtains from such or22 ganization contemporaneous written ac23 knowledgment (within the meaning of sec24 tion 170(f)(8) of such Code) that such con-
33 

•HR 88 EAH 

1 tribution was used (or is to be used) for re2 lief efforts described in clause (i)(II), and 

3 (iii) the taxpayer has elected the appli4 cation of this subsection with respect to such 

5 contribution. 

6 (B) EXCEPTION.—Such term shall not in7 clude a contribution by a donor if the contribu8 tion is— 

9 (i) to an organization described in sec10 tion 509(a)(3) of the Internal Revenue Code 

11 of 1986, or 

12 (ii) for the establishment of a new, or 

13 maintenance of an existing, donor advised 

14 fund (as defined in section 4966(d)(2) of 

15 such Code). 

16 (C) APPLICATION OF ELECTION TO PART17 NERSHIPS AND S CORPORATIONS.—In the case of 

18 a partnership or S corporation, the election 

19 under subparagraph (A)(iii) shall be made sepa20 rately by each partner or shareholder. 

21 (b) SPECIAL RULES FOR QUALIFIED DISASTER-RE22 LATED PERSONAL CASUALTY LOSSES.— 

23 (1) IN GENERAL.—If an individual has a net 

24 disaster loss for any taxable year— 
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1 (A) the amount determined under section 

2 165(h)(2)(A)(ii) of the Internal Revenue Code of 

3 1986 shall be equal to the sum of— 

4 (i) such net disaster loss, and 

5 (ii) so much of the excess referred to in 

6 the matter preceding clause (i) of section 

7 165(h)(2)(A) of such Code (reduced by the 

8 amount in clause (i) of this subparagraph) 

9 as exceeds 10 percent of the adjusted gross 

10 income of the individual, 

11 (B) section 165(h)(1) of such Code shall be 

12 applied by substituting ‘‘$500’’ for ‘‘$500 ($100 

13 for taxable years beginning after December 31, 

14 2009)’’, 

15 (C) the standard deduction determined 

16 under section 63(c) of such Code shall be in17 creased by the net disaster loss, and 

18 (D) section 56(b)(1)(E) of such Code shall 

19 not apply to so much of the standard deduction 

20 as is attributable to the increase under subpara21 graph (C) of this paragraph. 

22 (2) NET DISASTER LOSS.—For purposes of this 

23 subsection, the term ‘‘net disaster loss’’ means the ex24 cess of qualified disaster-related personal casualty 

25 losses over personal casualty gains (as defined in sec-
35 

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1 tion 165(h)(3)(A) of the Internal Revenue Code of 

2 1986). 

3 (3) QUALIFIED DISASTER-RELATED PERSONAL

4 CASUALTY LOSSES.—For purposes of this subsection, 

5 the term ‘‘qualified disaster-related personal casualty 

6 losses’’ means losses described in section 165(c)(3) of 

7 the Internal Revenue Code of 1986 which arise in a 

8 qualified disaster area on or after the incident begin9 ning date of the qualified disaster to which such area 

10 relates, and which are attributable to such qualified 

11 disaster. 

12 (c) SPECIAL RULE FOR DETERMINING EARNED IN13 COME.— 

14 (1) IN GENERAL.—In the case of a qualified in15 dividual, if the earned income of the taxpayer for the 

16 applicable taxable year is less than the earned income 

17 of the taxpayer for the preceding taxable year, the 

18 credits allowed under sections 24(d) and 32 of the In19 ternal Revenue Code of 1986 may, at the election of 

20 the taxpayer, be determined by substituting— 

21 (A) such earned income for the preceding 

22 taxable year, for 

23 (B) such earned income for the applicable 

24 taxable year. 
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1 (2) QUALIFIED INDIVIDUAL.—For purposes of 

2 this subsection, the term ‘‘qualified individual’’ means 

3 any individual whose principal place of abode at any 

4 time during the incident period of any qualified dis5 aster was located— 

6 (A) in the qualified disaster zone with re7 spect to such qualified disaster, or 

8 (B) in the qualified disaster area with re9 spect to such qualified disaster (but outside the 

10 qualified disaster zone with respect to such quali11 fied disaster) and such individual was displaced 

12 from such principal place of abode by reason of 

13 such qualified disaster. 

14 (3) APPLICABLE TAXABLE YEAR.—The term ‘‘ap15 plicable taxable year’’ means, with respect to any 

16 qualified individual, any taxable year which includes 

17 any day during the incident period of the qualified 

18 disaster to which the qualified disaster area referred 

19 to in paragraph (2) relates. 

20 (4) EARNED INCOME.—For purposes of this sub21 section, the term ‘‘earned income’’ has the meaning 

22 given such term under section 32(c) of the Internal 

23 Revenue Code of 1986. 

24 (5) SPECIAL RULES.— 
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1 (A) APPLICATION TO JOINT RETURNS.—For 

2 purposes of paragraph (1), in the case of a joint 

3 return for an applicable taxable year— 

4 (i) such paragraph shall apply if ei5 ther spouse is a qualified individual, and 

6 (ii) the earned income of the taxpayer 

7 for the preceding taxable year shall be the 

8 sum of the earned income of each spouse for 

9 such preceding taxable year. 

10 (B) UNIFORM APPLICATION OF ELECTION.— 

11 Any election made under paragraph (1) shall 

12 apply with respect to both sections 24(d) and 32 

13 of the Internal Revenue Code of 1986. 

14 (C) ERRORS TREATED AS MATHEMATICAL

15 ERROR.—For purposes of section 6213 of the In16 ternal Revenue Code of 1986, an incorrect use on 

17 a return of earned income pursuant to para18 graph (1) shall be treated as a mathematical or 

19 clerical error. 

20 (D) NO EFFECT ON DETERMINATION OF

21 GROSS INCOME, ETC.—Except as otherwise pro22 vided in this subsection, the Internal Revenue 

23 Code of 1986 shall be applied without regard to 

24 any substitution under paragraph (1). 
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1 SEC. 105. TREATMENT OF CERTAIN POSSESSIONS. 

2 (a) PAYMENTS TO GUAM AND THE COMMONWEALTH OF

3 THE NORTHERN MARIANA ISLANDS.—The Secretary of the 

4 Treasury shall pay to Guam and the Commonwealth of the 

5 Northern Mariana Islands amounts equal to the loss to that 

6 possession by reason of the application of the provisions of 

7 this title. Such amounts shall be determined by the Sec8 retary of the Treasury based on information provided by 

9 the government of the respective possession. 

10 (b) PAYMENTS TO AMERICAN SAMOA.— 

11 (1) IN GENERAL.—The Secretary of the Treasury 

12 shall pay to American Samoa amounts estimated by 

13 the Secretary of the Treasury as being equal to the 

14 aggregate benefits that would have been provided to 

15 residents of American Samoa by reason of the provi16 sions of this title if a mirror code tax system had been 

17 in effect in American Samoa. The preceding sentence 

18 shall not apply unless American Samoa has a plan, 

19 which has been approved by the Secretary of the 

20 Treasury, under which American Samoa will 

21 promptly distribute such payments to its residents. 

22 (2) MIRROR CODE TAX SYSTEM.—For purposes 

23 of this subsection, the term ‘‘mirror code tax system’’ 

24 means, with respect to any possession of the United 

25 States, the income tax system of such possession if the 

26 income tax liability of the residents of such possession 
39 

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1 under such system is determined by reference to the 

2 income tax laws of the United States as if such pos3 session were the United States. 

4 (c) TREATMENT OF PAYMENTS.—For purposes of sec5 tion 1324 of title 31, United States Code, the payments 

6 under this section shall be treated in the same manner as 

7 a refund due from a credit provision referred to in sub8 section (b)(2) of such section. 

9 SEC. 106. AUTOMATIC EXTENSION OF FILING DEADLINE. 

10 (a) IN GENERAL.—Section 7508A is amended by add11 ing at the end the following new subsection: 

12 ‘‘(d) MANDATORY 60-DAY EXTENSION.—In the case 

13 of— 

14 ‘‘(1) any individual whose principal place of 

15 abode is in a disaster area (as defined in section 

16 165(i)(5)(B)), and 

17 ‘‘(2) any taxpayer if the taxpayer’s principal 

18 place of business (other than the business of per19 forming services of an employee) is located in a dis20 aster area (as so defined), 

21 the period beginning on the earliest incident date specified 

22 in the declaration to which such area relates and ending 

23 on the date which is 60 days after the latest incident date 

24 so specified shall be disregarded in the same manner as a 

25 period specified under subsection (a).’’. 
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1 (b) EFFECTIVE DATE.—The amendment made by this 

2 section shall apply to Federally declared disasters declared 

3 after December 31, 2017. 

4 TITLE II—RETIREMENT AND 

5 SAVINGS 

6 Subtitle A—Expanding and 

7 Preserving Retirement Savings 

8 SEC. 201. MULTIPLE EMPLOYER PLANS; POOLED EMPLOYER 

9 PLANS. 

10 (a) QUALIFICATION REQUIREMENTS.— 

11 (1) IN GENERAL.—Section 413 is amended by 

12 adding at the end the following new subsection: 

13 ‘‘(e) APPLICATION OF QUALIFICATION REQUIREMENTS

14 FOR CERTAIN MULTIPLE EMPLOYER PLANS WITH POOLED

15 PLAN PROVIDERS.— 

16 ‘‘(1) IN GENERAL.—Except as provided in para17 graph (2), if a defined contribution plan to which 

18 subsection (c) applies— 

19 ‘‘(A) is maintained by employers which 

20 have a common interest other than having adopt21 ed the plan, or 

22 ‘‘(B) in the case of a plan not described in 

23 subparagraph (A), has a pooled plan provider, 

24 then the plan shall not be treated as failing to meet 

25 the requirements under this title applicable to a plan 
41 

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1 described in section 401(a) or to a plan that consists 

2 of individual retirement accounts described in section 

3 408 (including by reason of subsection (c) thereof), 

4 whichever is applicable, merely because one or more 

5 employers of employees covered by the plan fail to 

6 take such actions as are required of such employers 

7 for the plan to meet such requirements. 

8 ‘‘(2) LIMITATIONS.— 

9 ‘‘(A) IN GENERAL.—Paragraph (1) shall 

10 not apply to any plan unless the terms of the 

11 plan provide that in the case of any employer in 

12 the plan failing to take the actions described in 

13 paragraph (1)— 

14 ‘‘(i) the assets of the plan attributable 

15 to employees of such employer (or bene16 ficiaries of such employees) will be trans17 ferred to a plan maintained only by such 

18 employer (or its successor), to an eligible re19 tirement plan as defined in section 

20 402(c)(8)(B) for each individual whose ac21 count is transferred, or to any other ar22 rangement that the Secretary determines is 

23 appropriate, unless the Secretary deter24 mines it is in the best interests of the em25 ployees of such employer (and the bene-
42 

•HR 88 EAH 

1 ficiaries of such employees) to retain the as2 sets in the plan, and 

3 ‘‘(ii) such employer (and not the plan 

4 with respect to which the failure occurred or 

5 any other employer in such plan) shall, ex6 cept to the extent provided by the Secretary, 

7 be liable for any liabilities with respect to 

8 such plan attributable to employees of such 

9 employer (or beneficiaries of such employ10 ees). 

11 ‘‘(B) FAILURES BY POOLED PLAN PRO12 VIDERS.—If the pooled plan provider of a plan 

13 described in paragraph (1)(B) does not perform 

14 substantially all of the administrative duties 

15 which are required of the provider under para16 graph (3)(A)(i) for any plan year, the Secretary 

17 may provide that the determination as to wheth18 er the plan meets the requirements under this 

19 title applicable to a plan described in section 

20 401(a) or to a plan that consists of individual 

21 retirement accounts described in section 408 (in22 cluding by reason of subsection (c) thereof), 

23 whichever is applicable, shall be made in the 

24 same manner as would be made without regard 

25 to paragraph (1). 
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1 ‘‘(3) POOLED PLAN PROVIDER.— 

2 ‘‘(A) IN GENERAL.—For purposes of this 

3 subsection, the term ‘pooled plan provider’ 

4 means, with respect to any plan, a person who— 

5 ‘‘(i) is designated by the terms of the 

6 plan as a named fiduciary (within the 

7 meaning of section 402(a)(2) of the Em8 ployee Retirement Income Security Act of 

9 1974), as the plan administrator, and as 

10 the person responsible to perform all admin11 istrative duties (including conducting prop12 er testing with respect to the plan and the 

13 employees of each employer in the plan) 

14 which are reasonably necessary to ensure 

15 that— 

16 ‘‘(I) the plan meets any require17 ment applicable under the Employee 

18 Retirement Income Security Act of 

19 1974 or this title to a plan described in 

20 section 401(a) or to a plan that con21 sists of individual retirement accounts 

22 described in section 408 (including by 

23 reason of subsection (c) thereof), which24 ever is applicable, and 
44 

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1 ‘‘(II) each employer in the plan 

2 takes such actions as the Secretary or 

3 such person determines are necessary 

4 for the plan to meet the requirements 

5 described in subclause (I), including 

6 providing to such person any disclo7 sures or other information which the 

8 Secretary may require or which such 

9 person otherwise determines are nec10 essary to administer the plan or to 

11 allow the plan to meet such require12 ments, 

13 ‘‘(ii) registers as a pooled plan pro14 vider with the Secretary, and provides such 

15 other information to the Secretary as the 

16 Secretary may require, before beginning op17 erations as a pooled plan provider, 

18 ‘‘(iii) acknowledges in writing that 

19 such person is a named fiduciary (within 

20 the meaning of section 402(a)(2) of the Em21 ployee Retirement Income Security Act of 

22 1974), and the plan administrator, with re23 spect to the plan, and 

24 ‘‘(iv) is responsible for ensuring that 

25 all persons who handle assets of, or who are 
45 

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1 fiduciaries of, the plan are bonded in ac2 cordance with section 412 of the Employee 

3 Retirement Income Security Act of 1974. 

4 ‘‘(B) AUDITS, EXAMINATIONS AND INVES5 TIGATIONS.—The Secretary may perform audits, 

6 examinations, and investigations of pooled plan 

7 providers as may be necessary to enforce and 

8 carry out the purposes of this subsection. 

9 ‘‘(C) AGGREGATION RULES.—For purposes 

10 of this paragraph, in determining whether a per11 son meets the requirements of this paragraph to 

12 be a pooled plan provider with respect to any 

13 plan, all persons who perform services for the 

14 plan and who are treated as a single employer 

15 under subsection (b), (c), (m), or (o) of section 

16 414 shall be treated as one person. 

17 ‘‘(D) TREATMENT OF EMPLOYERS AS PLAN

18 SPONSORS.—Except with respect to the adminis19 trative duties of the pooled plan provider de20 scribed in subparagraph (A)(i), each employer in 

21 a plan which has a pooled plan provider shall 

22 be treated as the plan sponsor with respect to the 

23 portion of the plan attributable to employees of 

24 such employer (or beneficiaries of such employ25 ees). 
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1 ‘‘(4) GUIDANCE.—The Secretary shall issue such 

2 guidance as the Secretary determines appropriate to 

3 carry out this subsection, including guidance— 

4 ‘‘(A) to identify the administrative duties 

5 and other actions required to be performed by a 

6 pooled plan provider under this subsection, 

7 ‘‘(B) which describes the procedures to be 

8 taken to terminate a plan which fails to meet the 

9 requirements to be a plan described in para10 graph (1), including the proper treatment of, 

11 and actions needed to be taken by, any employer 

12 in the plan and the assets and liabilities of the 

13 plan attributable to employees of such employer 

14 (or beneficiaries of such employees), and 

15 ‘‘(C) identifying appropriate cases to which 

16 the rules of paragraph (2)(A) will apply to em17 ployers in the plan failing to take the actions de18 scribed in paragraph (1). 

19 The Secretary shall take into account under subpara20 graph (C) whether the failure of an employer or 

21 pooled plan provider to provide any disclosures or 

22 other information, or to take any other action, nec23 essary to administer a plan or to allow a plan to 

24 meet requirements applicable to the plan under sec25 tion 401(a) or 408, whichever is applicable, has con-
47 

•HR 88 EAH 

1 tinued over a period of time that demonstrates a lack 

2 of commitment to compliance. 

3 ‘‘(5) MODEL PLAN.—The Secretary shall publish 

4 model plan language which meets the requirements of 

5 this subsection and of paragraphs (43) and (44) of 

6 section 3 of the Employee Retirement Income Security 

7 Act of 1974 and which may be adopted in order for 

8 a plan to be treated as a plan described in paragraph 

9 (1)(B).’’. 

10 (2) CONFORMING AMENDMENT.—Section 

11 413(c)(2) is amended by striking ‘‘section 401(a)’’ 

12 and inserting ‘‘sections 401(a) and 408(c)’’. 

13 (3) TECHNICAL AMENDMENT.—Section 408(c) is 

14 amended by inserting after paragraph (2) the fol15 lowing new paragraph: 

16 ‘‘(3) There is a separate accounting for any in17 terest of an employee or member (or spouse of an em18 ployee or member) in a Roth IRA.’’. 

19 (b) NO COMMON INTEREST REQUIRED FOR POOLED

20 EMPLOYER PLANS.—Section 3(2) of the Employee Retire21 ment Income Security Act of 1974 (29 U.S.C. 1002(2)) is 

22 amended by adding at the end the following: 

23 ‘‘(C) A pooled employer plan shall be treat24 ed as— 
48 

•HR 88 EAH 

1 ‘‘(i) a single employee pension benefit 

2 plan or single pension plan; and 

3 ‘‘(ii) a plan to which section 210(a) 

4 applies.’’. 

5 (c) POOLED EMPLOYER PLAN AND PROVIDER DE6 FINED.— 

7 (1) IN GENERAL.—Section 3 of the Employee Re8 tirement Income Security Act of 1974 (29 U.S.C. 

9 1002) is amended by adding at the end the following: 

10 ‘‘(43) POOLED EMPLOYER PLAN.— 

11 ‘‘(A) IN GENERAL.—The term ‘pooled em12 ployer plan’ means a plan— 

13 ‘‘(i) which is an individual account 

14 plan established or maintained for the pur15 pose of providing benefits to the employees 

16 of 2 or more employers; 

17 ‘‘(ii) which is a plan described in sec18 tion 401(a) of the Internal Revenue Code of 

19 1986 which includes a trust exempt from 

20 tax under section 501(a) of such Code or a 

21 plan that consists of individual retirement 

22 accounts described in section 408 of such 

23 Code (including by reason of subsection (c) 

24 thereof); and 
49 

•HR 88 EAH 

1 ‘‘(iii) the terms of which meet the re2 quirements of subparagraph (B). 

3 Such term shall not include a plan maintained 

4 by employers which have a common interest 

5 other than having adopted the plan. 

6 ‘‘(B) REQUIREMENTS FOR PLAN TERMS.— 

7 The requirements of this subparagraph are met 

8 with respect to any plan if the terms of the 

9 plan— 

10 ‘‘(i) designate a pooled plan provider 

11 and provide that the pooled plan provider is 

12 a named fiduciary of the plan; 

13 ‘‘(ii) designate one or more trustees 

14 meeting the requirements of section 

15 408(a)(2) of the Internal Revenue Code of 

16 1986 (other than an employer in the plan) 

17 to be responsible for collecting contributions 

18 to, and holding the assets of, the plan and 

19 require such trustees to implement written 

20 contribution collection procedures that are 

21 reasonable, diligent, and systematic; 

22 ‘‘(iii) provide that each employer in 

23 the plan retains fiduciary responsibility 

24 for— 
50 

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1 ‘‘(I) the selection and monitoring 

2 in accordance with section 404(a) of 

3 the person designated as the pooled 

4 plan provider and any other person 

5 who, in addition to the pooled plan 

6 provider, is designated as a named fi7 duciary of the plan; and 

8 ‘‘(II) to the extent not otherwise 

9 delegated to another fiduciary by the 

10 pooled plan provider and subject to the 

11 provisions of section 404(c), the invest12 ment and management of the portion 

13 of the plan’s assets attributable to the 

14 employees of the employer (or bene15 ficiaries of such employees); 

16 ‘‘(iv) provide that employers in the 

17 plan, and participants and beneficiaries, 

18 are not subject to unreasonable restrictions, 

19 fees, or penalties with regard to ceasing 

20 participation, receipt of distributions, or 

21 otherwise transferring assets of the plan in 

22 accordance with section 208 or paragraph 

23 (44)(C)(i)(II); 

24 ‘‘(v) require— 
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1 ‘‘(I) the pooled plan provider to 

2 provide to employers in the plan any 

3 disclosures or other information which 

4 the Secretary may require, including 

5 any disclosures or other information to 

6 facilitate the selection or any moni7 toring of the pooled plan provider by 

8 employers in the plan; and 

9 ‘‘(II) each employer in the plan to 

10 take such actions as the Secretary or 

11 the pooled plan provider determines 

12 are necessary to administer the plan or 

13 for the plan to meet any requirement 

14 applicable under this Act or the Inter15 nal Revenue Code of 1986 to a plan de16 scribed in section 401(a) of such Code 

17 or to a plan that consists of individual 

18 retirement accounts described in sec19 tion 408 of such Code (including by 

20 reason of subsection (c) thereof), which21 ever is applicable, including providing 

22 any disclosures or other information 

23 which the Secretary may require or 

24 which the pooled plan provider other25 wise determines are necessary to ad-
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1 minister the plan or to allow the plan 

2 to meet such requirements; and 

3 ‘‘(vi) provide that any disclosure or 

4 other information required to be provided 

5 under clause (v) may be provided in elec6 tronic form and will be designed to ensure 

7 only reasonable costs are imposed on pooled 

8 plan providers and employers in the plan. 

9 ‘‘(C) EXCEPTIONS.—The term ‘pooled em10 ployer plan’ does not include— 

11 ‘‘(i) a multiemployer plan; or 

12 ‘‘(ii) a plan established before the date 

13 of the enactment of the Retirement, Savings, 

14 and Other Tax Relief Act of 2018 unless the 

15 plan administrator elects that the plan will 

16 be treated as a pooled employer plan and 

17 the plan meets the requirements of this title 

18 applicable to a pooled employer plan estab19 lished on or after such date. 

20 ‘‘(D) TREATMENT OF EMPLOYERS AS PLAN

21 SPONSORS.—Except with respect to the adminis22 trative duties of the pooled plan provider de23 scribed in paragraph (44)(A)(i), each employer 

24 in a pooled employer plan shall be treated as the 

25 plan sponsor with respect to the portion of the 
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1 plan attributable to employees of such employer 

2 (or beneficiaries of such employees). 

3 ‘‘(44) POOLED PLAN PROVIDER.— 

4 ‘‘(A) IN GENERAL.—The term ‘pooled plan 

5 provider’ means a person who— 

6 ‘‘(i) is designated by the terms of a 

7 pooled employer plan as a named fiduciary, 

8 as the plan administrator, and as the per9 son responsible for the performance of all 

10 administrative duties (including conducting 

11 proper testing with respect to the plan and 

12 the employees of each employer in the plan) 

13 which are reasonably necessary to ensure 

14 that— 

15 ‘‘(I) the plan meets any require16 ment applicable under this Act or the 

17 Internal Revenue Code of 1986 to a 

18 plan described in section 401(a) of 

19 such Code or to a plan that consists of 

20 individual retirement accounts de21 scribed in section 408 of such Code (in22 cluding by reason of subsection (c) 

23 thereof), whichever is applicable; and 

24 ‘‘(II) each employer in the plan 

25 takes such actions as the Secretary or 
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•HR 88 EAH 

1 pooled plan provider determines are 

2 necessary for the plan to meet the re3 quirements described in subclause (I), 

4 including providing the disclosures and 

5 information described in paragraph 

6 (43)(B)(v)(II); 

7 ‘‘(ii) registers as a pooled plan pro8 vider with the Secretary, and provides to 

9 the Secretary such other information as the 

10 Secretary may require, before beginning op11 erations as a pooled plan provider; 

12 ‘‘(iii) acknowledges in writing that 

13 such person is a named fiduciary, and the 

14 plan administrator, with respect to the 

15 pooled employer plan; and 

16 ‘‘(iv) is responsible for ensuring that 

17 all persons who handle assets of, or who are 

18 fiduciaries of, the pooled employer plan are 

19 bonded in accordance with section 412. 

20 ‘‘(B) AUDITS, EXAMINATIONS AND INVES21 TIGATIONS.—The Secretary may perform audits, 

22 examinations, and investigations of pooled plan 

23 providers as may be necessary to enforce and 

24 carry out the purposes of this paragraph and 

25 paragraph (43). 
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1 ‘‘(C) GUIDANCE.—The Secretary shall issue 

2 such guidance as the Secretary determines ap3 propriate to carry out this paragraph and para4 graph (43), including guidance— 

5 ‘‘(i) to identify the administrative du6 ties and other actions required to be per7 formed by a pooled plan provider under ei8 ther such paragraph; and 

9 ‘‘(ii) which requires in appropriate 

10 cases that if an employer in the plan fails 

11 to take the actions required under subpara12 graph (A)(i)(II)— 

13 ‘‘(I) the assets of the plan attrib14 utable to employees of such employer 

15 (or beneficiaries of such employees) are 

16 transferred to a plan maintained only 

17 by such employer (or its successor), to 

18 an eligible retirement plan as defined 

19 in section 402(c)(8)(B) of the Internal 

20 Revenue Code of 1986 for each indi21 vidual whose account is transferred, or 

22 to any other arrangement that the Sec23 retary determines is appropriate in 

24 such guidance; and 
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•HR 88 EAH 

1 ‘‘(II) such employer (and not the 

2 plan with respect to which the failure 

3 occurred or any other employer in such 

4 plan) shall, except to the extent pro5 vided in such guidance, be liable for 

6 any liabilities with respect to such 

7 plan attributable to employees of such 

8 employer (or beneficiaries of such em9 ployees). 

10 The Secretary shall take into account under 

11 clause (ii) whether the failure of an employer or 

12 pooled plan provider to provide any disclosures 

13 or other information, or to take any other action, 

14 necessary to administer a plan or to allow a 

15 plan to meet requirements described in subpara16 graph (A)(i)(II) has continued over a period of 

17 time that demonstrates a lack of commitment to 

18 compliance. The Secretary may waive the re19 quirements of subclause (ii)(I) in appropriate 

20 circumstances if the Secretary determines it is in 

21 the best interests of the employees of the employer 

22 referred to in such clause (and the beneficiaries 

23 of such employees) to retain the assets in the 

24 plan with respect to which the employer’s failure 

25 occurred. 
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1 ‘‘(D) AGGREGATION RULES.—For purposes 

2 of this paragraph, in determining whether a per3 son meets the requirements of this paragraph to 

4 be a pooled plan provider with respect to any 

5 plan, all persons who perform services for the 

6 plan and who are treated as a single employer 

7 under subsection (b), (c), (m), or (o) of section 

8 414 of the Internal Revenue Code of 1986 shall 

9 be treated as one person.’’. 

10 (2) BONDING REQUIREMENTS FOR POOLED EM11 PLOYER PLANS.—The last sentence of section 412(a) 

12 of the Employee Retirement Income Security Act of 

13 1974 (29 U.S.C. 1112(a)) is amended by inserting 

14 ‘‘or in the case of a pooled employer plan (as defined 

15 in section 3(43))’’ after ‘‘section 407(d)(1))’’. 

16 (3) CONFORMING AND TECHNICAL AMEND17 MENTS.—Section 3 of the Employee Retirement In18 come Security Act of 1974 (29 U.S.C. 1002) is 

19 amended— 

20 (A) in paragraph (16)(B)— 

21 (i) by striking ‘‘or’’ at the end of clause 

22 (ii); and 

23 (ii) by striking the period at the end 

24 and inserting ‘‘, or (iv) in the case of a 
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1 pooled employer plan, the pooled plan pro2 vider.’’; and 

3 (B) by striking the second paragraph (41). 

4 (d) POOLED EMPLOYER AND MULTIPLE EMPLOYER

5 PLAN REPORTING.— 

6 (1) ADDITIONAL INFORMATION.—Section 103 of 

7 the Employee Retirement Income Security Act of 

8 1974 (29 U.S.C. 1023) is amended— 

9 (A) in subsection (a)(1)(B), by striking 

10 ‘‘applicable subsections (d), (e), and (f)’’ and in11 serting ‘‘applicable subsections (d), (e), (f), and 

12 (g)’’; and 

13 (B) by amending subsection (g) to read as 

14 follows: 

15 ‘‘(g) ADDITIONAL INFORMATION WITH RESPECT TO

16 POOLED EMPLOYER AND MULTIPLE EMPLOYER PLANS.— 

17 An annual report under this section for a plan year shall 

18 include— 

19 ‘‘(1) with respect to any plan to which section 

20 210(a) applies (including a pooled employer plan), a 

21 list of employers in the plan, a good faith estimate of 

22 the percentage of total contributions made by such 

23 employers during the plan year, and the aggregate ac24 count balances attributable to each employer in the 

25 plan (determined as the sum of the account balances 
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1 of the employees of such employer (and the bene2 ficiaries of such employees)); and 

3 ‘‘(2) with respect to a pooled employer plan, the 

4 identifying information for the person designated 

5 under the terms of the plan as the pooled plan pro6 vider.’’. 

7 (2) SIMPLIFIED ANNUAL REPORTS.—Section 

8 104(a) of the Employee Retirement Income Security 

9 Act of 1974 (29 U.S.C. 1024(a)) is amended by strik10 ing paragraph (2)(A) and inserting the following: 

11 ‘‘(2)(A) With respect to annual reports required 

12 to be filed with the Secretary under this part, the Sec13 retary may by regulation prescribe simplified annual 

14 reports for any pension plan that— 

15 ‘‘(i) covers fewer than 100 participants; or 

16 ‘‘(ii) is a plan described in section 210(a) 

17 that covers fewer than 1,000 participants, but 

18 only if no single employer in the plan has 100 

19 or more participants covered by the plan.’’. 

20 (e) EFFECTIVE DATE.— 

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

22 this section shall apply to plan years beginning after 

23 December 31, 2019. 

24 (2) RULE OF CONSTRUCTION.—Nothing in the 

25 amendments made by subsection (a) shall be con-
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1 strued as limiting the authority of the Secretary of 

2 the Treasury or the Secretary’s delegate (determined 

3 without regard to such amendments) to provide for 

4 the proper treatment of a failure to meet any require5 ment applicable under the Internal Revenue Code of 

6 1986 with respect to one employer (and its employees) 

7 in a multiple employer plan. 

8 SEC. 202. RULES RELATING TO ELECTION OF SAFE HARBOR 

9 401(k) STATUS. 

10 (a) LIMITATION OF ANNUAL SAFE HARBOR NOTICE TO

11 MATCHING CONTRIBUTION PLANS.— 

12 (1) IN GENERAL.—Section 401(k)(12)(A) is 

13 amended by striking ‘‘if such arrangement’’ and all 

14 that follows and inserting ‘‘if such arrangement— 

15 ‘‘(i) meets the contribution require16 ments of subparagraph (B) and the notice 

17 requirements of subparagraph (D), or 

18 ‘‘(ii) meets the contribution require19 ments of subparagraph (C).’’. 

20 (2) AUTOMATIC CONTRIBUTION ARRANGE21 MENTS.—Section 401(k)(13)(B) is amended by strik22 ing ‘‘means’’ and all that follows and inserting 

23 ‘‘means a cash or deferred arrangement— 

24 ‘‘(i) which is described in subpara25 graph (D)(i)(I) and meets the applicable re-
61 

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1 quirements of subparagraphs (C) through 

2 (E), or 

3 ‘‘(ii) which is described in subpara4 graph (D)(i)(II) and meets the applicable 

5 requirements of subparagraphs (C) and 

6 (D).’’. 

7 (b) NONELECTIVE CONTRIBUTIONS.—Section 

8 401(k)(12) is amended by redesignating subparagraph (F) 

9 as subparagraph (G), and by inserting after subparagraph 

10 (E) the following new subparagraph: 

11 ‘‘(F) TIMING OF PLAN AMENDMENT FOR EM12 PLOYER MAKING NONELECTIVE CONTRIBU13 TIONS.— 

14 ‘‘(i) IN GENERAL.—Except as provided 

15 in clause (ii), a plan may be amended after 

16 the beginning of a plan year to provide that 

17 the requirements of subparagraph (C) shall 

18 apply to the arrangement for the plan year, 

19 but only if the amendment is adopted— 

20 ‘‘(I) at any time before the 30th 

21 day before the close of the plan year, or 

22 ‘‘(II) at any time before the last 

23 day under paragraph (8)(A) for dis24 tributing excess contributions for the 

25 plan year. 
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1 ‘‘(ii) EXCEPTION WHERE PLAN PRO2 VIDED FOR MATCHING CONTRIBUTIONS.— 

3 Clause (i) shall not apply to any plan year 

4 if the plan provided at any time during the 

5 plan year that the requirements of subpara6 graph (B) or paragraph (13)(D)(i)(I) ap7 plied to the plan year. 

8 ‘‘(iii) 4-PERCENT CONTRIBUTION RE9 QUIREMENT.—Clause (i)(II) shall not apply 

10 to an arrangement unless the amount of the 

11 contributions described in subparagraph (C) 

12 which the employer is required to make 

13 under the arrangement for the plan year 

14 with respect to any employee is an amount 

15 equal to at least 4 percent of the employee’s 

16 compensation.’’. 

17 (c) AUTOMATIC CONTRIBUTION ARRANGEMENTS.— 

18 Section 401(k)(13) is amended by adding at the end the 

19 following: 

20 ‘‘(F) TIMING OF PLAN AMENDMENT FOR EM21 PLOYER MAKING NONELECTIVE CONTRIBU22 TIONS.— 

23 ‘‘(i) IN GENERAL.—Except as provided 

24 in clause (ii), a plan may be amended after 

25 the beginning of a plan year to provide that 
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1 the requirements of subparagraph (D)(i)(II) 

2 shall apply to the arrangement for the plan 

3 year, but only if the amendment is adopt4 ed— 

5 ‘‘(I) at any time before the 30th 

6 day before the close of the plan year, or 

7 ‘‘(II) at any time before the last 

8 day under paragraph (8)(A) for dis9 tributing excess contributions for the 

10 plan year. 

11 ‘‘(ii) EXCEPTION WHERE PLAN PRO12 VIDED FOR MATCHING CONTRIBUTIONS.— 

13 Clause (i) shall not apply to any plan year 

14 if the plan provided at any time during the 

15 plan year that the requirements of subpara16 graph (D)(i)(I) or paragraph (12)(B) ap17 plied to the plan year. 

18 ‘‘(iii) 4-PERCENT CONTRIBUTION RE19 QUIREMENT.—Clause (i)(II) shall not apply 

20 to an arrangement unless the amount of the 

21 contributions described in subparagraph 

22 (D)(i)(II) which the employer is required to 

23 make under the arrangement for the plan 

24 year with respect to any employee is an 
64 

•HR 88 EAH 

1 amount equal to at least 4 percent of the 

2 employee’s compensation.’’. 

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

4 section shall apply to plan years beginning after December 

5 31, 2018. 

6 SEC. 203. CERTAIN TAXABLE NON-TUITION FELLOWSHIP 

7 AND STIPEND PAYMENTS TREATED AS COM8 PENSATION FOR IRA PURPOSES. 

9 (a) IN GENERAL.—Section 219(f)(1) is amended by 

10 adding at the end the following: ‘‘The term ‘compensation’ 

11 shall include any amount included in gross income and 

12 paid to an individual to aid the individual in the pursuit 

13 of graduate or postdoctoral study.’’. 

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

15 section shall apply to taxable years beginning after Decem16 ber 31, 2018. 

17 SEC. 204. REPEAL OF MAXIMUM AGE FOR TRADITIONAL IRA 

18 CONTRIBUTIONS. 

19 (a) IN GENERAL.—Section 219(d) is amended by strik20 ing paragraph (1). 

21 (b) CONFORMING AMENDMENT.—Section 408A(c) is 

22 amended by striking paragraph (4) and by redesignating 

23 paragraphs (5), (6), and (7) as paragraphs (4), (5), and 

24 (6), respectively. 
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1 (c) EFFECTIVE DATE.—The amendments made by this 

2 section shall apply to contributions made for taxable years 

3 beginning after December 31, 2018. 

4 SEC. 205. QUALIFIED EMPLOYER PLANS PROHIBITED FROM 

5 MAKING LOANS THROUGH CREDIT CARDS 

6 AND OTHER SIMILAR ARRANGEMENTS. 

7 (a) IN GENERAL.—Section 72(p)(2) is amended by re8 designating subparagraph (D) as subparagraph (E) and by 

9 inserting after subparagraph (C) the following new sub10 paragraph: 

11 ‘‘(D) PROHIBITION OF LOANS THROUGH

12 CREDIT CARDS AND OTHER SIMILAR ARRANGE13 MENTS.—Notwithstanding subparagraph (A), 

14 paragraph (1) shall apply to any loan which is 

15 made through the use of any credit card or any 

16 other similar arrangement.’’. 

17 (b) EFFECTIVE DATE.—The amendments made by sub18 section (a) shall apply to loans made after the date of the 

19 enactment of this Act. 

20 SEC. 206. PORTABILITY OF LIFETIME INCOME INVEST21 MENTS. 

22 (a) IN GENERAL.—Section 401(a) is amended by in23 serting after paragraph (37) the following new paragraph: 

24 ‘‘(38) PORTABILITY OF LIFETIME INCOME IN25 VESTMENTS.— 
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1 ‘‘(A) IN GENERAL.—Except as may be oth2 erwise provided by regulations, a trust forming 

3 part of a defined contribution plan shall not be 

4 treated as failing to constitute a qualified trust 

5 under this section solely by reason of allowing— 

6 ‘‘(i) qualified distributions of a life7 time income investment, or 

8 ‘‘(ii) distributions of a lifetime income 

9 investment in the form of a qualified plan 

10 distribution annuity contract, 

11 on or after the date that is 90 days prior to the 

12 date on which such lifetime income investment is 

13 no longer authorized to be held as an investment 

14 option under the plan. 

15 ‘‘(B) DEFINITIONS.—For purposes of this 

16 subsection— 

17 ‘‘(i) the term ‘qualified distribution’ 

18 means a direct trustee-to-trustee transfer de19 scribed in paragraph (31)(A) to an eligible 

20 retirement plan (as defined in section 

21 402(c)(8)(B)), 

22 ‘‘(ii) the term ‘lifetime income invest23 ment’ means an investment option which is 

24 designed to provide an employee with elec25 tion rights— 
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•HR 88 EAH 

1 ‘‘(I) which are not uniformly 

2 available with respect to other invest3 ment options under the plan, and 

4 ‘‘(II) which are to a lifetime in5 come feature available through a con6 tract or other arrangement offered 

7 under the plan (or under another eligi8 ble retirement plan (as so defined), if 

9 paid by means of a direct trustee-to10 trustee transfer described in paragraph 

11 (31)(A) to such other eligible retire12 ment plan), 

13 ‘‘(iii) the term ‘lifetime income feature’ 

14 means— 

15 ‘‘(I) a feature which guarantees a 

16 minimum level of income annually (or 

17 more frequently) for at least the re18 mainder of the life of the employee or 

19 the joint lives of the employee and the 

20 employee’s designated beneficiary, or 

21 ‘‘(II) an annuity payable on be22 half of the employee under which pay23 ments are made in substantially equal 

24 periodic payments (not less frequently 

25 than annually) over the life of the em-
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•HR 88 EAH 

1 ployee or the joint lives of the employee 

2 and the employee’s designated bene3 ficiary, and 

4 ‘‘(iv) the term ‘qualified plan distribu5 tion annuity contract’ means an annuity 

6 contract purchased for a participant and 

7 distributed to the participant by a plan or 

8 contract described in subparagraph (B) of 

9 section 402(c)(8) (without regard to clauses 

10 (i) and (ii) thereof).’’. 

11 (b) CASH OR DEFERRED ARRANGEMENT.— 

12 (1) IN GENERAL.—Section 401(k)(2)(B)(i) is 

13 amended by striking ‘‘or’’ at the end of subclause 

14 (IV), by striking ‘‘and’’ at the end of subclause (V) 

15 and inserting ‘‘or’’, and by adding at the end the fol16 lowing new subclause: 

17 ‘‘(VI) except as may be otherwise 

18 provided by regulations, with respect to 

19 amounts invested in a lifetime income 

20 investment (as defined in subsection 

21 (a)(38)(B)(ii)), the date that is 90 

22 days prior to the date that such life23 time income investment may no longer 

24 be held as an investment option under 

25 the arrangement, and’’. 
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1 (2) DISTRIBUTION REQUIREMENT.—Section 

2 401(k)(2)(B), as amended by paragraph (1), is 

3 amended by striking ‘‘and’’ at the end of clause (i), 

4 by striking the semicolon at the end of clause (ii) and 

5 inserting ‘‘, and’’, and by adding at the end the fol6 lowing new clause: 

7 ‘‘(iii) except as may be otherwise pro8 vided by regulations, in the case of amounts 

9 described in clause (i)(VI), will be distrib10 uted only in the form of a qualified dis11 tribution (as defined in subsection 

12 (a)(38)(B)(i)) or a qualified plan distribu13 tion annuity contract (as defined in sub14 section (a)(38)(B)(iv)),’’. 

15 (c) SECTION 403(b) PLANS.— 

16 (1) ANNUITY CONTRACTS.—Section 403(b)(11) is 

17 amended by striking ‘‘or’’ at the end of subparagraph 

18 (B), by striking the period at the end of subparagraph 

19 (C) and inserting ‘‘, or’’, and by inserting after sub20 paragraph (C) the following new subparagraph: 

21 ‘‘(D) except as may be otherwise provided 

22 by regulations, with respect to amounts invested 

23 in a lifetime income investment (as defined in 

24 section 401(a)(38)(B)(ii))— 
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1 ‘‘(i) on or after the date that is 90 

2 days prior to the date that such lifetime in3 come investment may no longer be held as 

4 an investment option under the contract, 

5 and 

6 ‘‘(ii) in the form of a qualified dis7 tribution (as defined in section 

8 401(a)(38)(B)(i)) or a qualified plan dis9 tribution annuity contract (as defined in 

10 section 401(a)(38)(B)(iv)).’’. 

11 (2) CUSTODIAL ACCOUNTS.—Section 

12 403(b)(7)(A) is amended by striking ‘‘if—’’ and all 

13 that follows and inserting ‘‘if the amounts are to be 

14 invested in regulated investment company stock to be 

15 held in that custodial account, and under the custo16 dial account— 

17 ‘‘(i) no such amounts may be paid or 

18 made available to any distributee (unless 

19 such amount is a distribution to which sec20 tion 72(t)(2)(G) applies) before— 

21 ‘‘(I) the employee dies, 

22 ‘‘(II) the employee attains age 

591 23 ⁄2, 

24 ‘‘(III) the employee has a sever25 ance from employment, 
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1 ‘‘(IV) the employee becomes dis2 abled (within the meaning of section 

3 72(m)(7)), 

4 ‘‘(V) in the case of contributions 

5 made pursuant to a salary reduction 

6 agreement (within the meaning of sec7 tion 3121(a)(5)(D)), the employee en8 counters financial hardship, or 

9 ‘‘(VI) except as may be otherwise 

10 provided by regulations, with respect to 

11 amounts invested in a lifetime income 

12 investment (as defined in section 

13 401(a)(38)(B)(ii)), the date that is 90 

14 days prior to the date that such life15 time income investment may no longer 

16 be held as an investment option under 

17 the contract, and 

18 ‘‘(ii) in the case of amounts described 

19 in clause (i)(VI), such amounts will be dis20 tributed only in the form of a qualified dis21 tribution (as defined in section 

22 401(a)(38)(B)(i)) or a qualified plan dis23 tribution annuity contract (as defined in 

24 section 401(a)(38)(B)(iv)).’’. 

25 (d) ELIGIBLE DEFERRED COMPENSATION PLANS.— 
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1 (1) IN GENERAL.—Section 457(d)(1)(A) is 

2 amended by striking ‘‘or’’ at the end of clause (ii), by 

3 inserting ‘‘or’’ at the end of clause (iii), and by add4 ing after clause (iii) the following: 

5 ‘‘(iv) except as may be otherwise pro6 vided by regulations, in the case of a plan 

7 maintained by an employer described in 

8 subsection (e)(1)(A), with respect to 

9 amounts invested in a lifetime income in10 vestment (as defined in section 

11 401(a)(38)(B)(ii)), the date that is 90 days 

12 prior to the date that such lifetime income 

13 investment may no longer be held as an in14 vestment option under the plan,’’. 

15 (2) DISTRIBUTION REQUIREMENT.—Section 

16 457(d)(1) is amended by striking ‘‘and’’ at the end of 

17 subparagraph (B), by striking the period at the end 

18 of subparagraph (C) and inserting ‘‘, and’’, and by 

19 inserting after subparagraph (C) the following new 

20 subparagraph: 

21 ‘‘(D) except as may be otherwise provided 

22 by regulations, in the case of amounts described 

23 in subparagraph (A)(iv), such amounts will be 

24 distributed only in the form of a qualified dis25 tribution (as defined in section 401(a)(38)(B)(i)) 
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1 or a qualified plan distribution annuity contract 

2 (as defined in section 401(a)(38)(B)(iv)).’’. 

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

4 section shall apply to plan years beginning after December 

5 31, 2018. 

6 SEC. 207. TREATMENT OF CUSTODIAL ACCOUNTS ON TER7 MINATION OF SECTION 403(b) PLANS. 

8 Not later than six months after the date of enactment 

9 of this Act, the Secretary of the Treasury shall issue guid10 ance to provide that, if an employer terminates the plan 

11 under which amounts are contributed to a custodial account 

12 under subparagraph (A) of section 403(b)(7), the plan ad13 ministrator or custodian may distribute an individual cus14 todial account in kind to a participant or beneficiary of 

15 the plan and the distributed custodial account shall be 

16 maintained by the custodian on a tax-deferred basis as a 

17 section 403(b)(7) custodial account, similar to the treatment 

18 of fully-paid individual annuity contracts under Revenue 

19 Ruling 2011–7, until amounts are actually paid to the par20 ticipant or beneficiary. The guidance shall provide further 

21 (i) that the section 403(b)(7) status of the distributed custo22 dial account is generally maintained if the custodial ac23 count thereafter adheres to the requirements of section 

24 403(b) that are in effect at the time of the distribution of 

25 the account and (ii) that a custodial account would not be 
74 

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1 considered distributed to the participant or beneficiary if 

2 the employer has any material retained rights under the 

3 account (but the employer would not be treated as retaining 

4 material rights simply because the custodial account was 

5 originally opened under a group contract). 

6 SEC. 208. CLARIFICATION OF RETIREMENT INCOME AC7 COUNT RULES RELATING TO CHURCH-CON8 TROLLED ORGANIZATIONS. 

9 (a) IN GENERAL.—Section 403(b)(9)(B) is amended 

10 by inserting ‘‘(including an employee described in section 

11 414(e)(3)(B))’’ after ‘‘employee described in paragraph 

12 (1)’’. 

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

14 section shall apply to years beginning before, on, or after 

15 the date of the enactment of this Act. 

16 SEC. 209. INCREASE IN 10 PERCENT CAP FOR AUTOMATIC 

17 ENROLLMENT SAFE HARBOR AFTER 1ST PLAN 

18 YEAR. 

19 (a) IN GENERAL.—Section 401(k)(13)(C)(iii) is 

20 amended by striking ‘‘does not exceed 10 percent’’ and in21 serting ‘‘does not exceed 15 percent (10 percent during the 

22 period described in subclause (I))’’. 

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

24 section shall apply to plan years beginning after December 

25 31, 2018. 
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1 SEC. 210. INCREASE IN CREDIT LIMITATION FOR SMALL EM2 PLOYER PENSION PLAN STARTUP COSTS. 

3 (a) IN GENERAL.—Paragraph (1) of section 45E(b) is 

4 amended to read as follows: 

5 ‘‘(1) for the first credit year and each of the 2 

6 taxable years immediately following the first credit 

7 year, the greater of— 

8 ‘‘(A) $500, or 

9 ‘‘(B) the lesser of— 

10 ‘‘(i) $250 for each employee of the eli11 gible employer who is not a highly com12 pensated employee (as defined in section 

13 414(q)) and who is eligible to participate in 

14 the eligible employer plan maintained by 

15 the eligible employer, or 

16 ‘‘(ii) $1,500, and’’. 

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

18 section shall apply to taxable years beginning after Decem19 ber 31, 2018. 

20 SEC. 211. SMALL EMPLOYER AUTOMATIC ENROLLMENT 

21 CREDIT. 

22 (a) IN GENERAL.—Section 45E is amended by adding 

23 at the end the following new subsection:’’. 

24 ‘‘(f) CREDIT FOR AUTO-ENROLLMENT OPTION FOR RE25 TIREMENT SAVINGS OPTIONS.— 
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1 ‘‘(1) IN GENERAL.—The credit allowed under 

2 subsection (a) for any taxable year during an eligible 

3 employer’s retirement auto-enrollment credit period 

4 shall be increased (without regard to subsection (b)) 

5 by $500. 

6 ‘‘(2) RETIREMENT AUTO-ENROLLMENT CREDIT

7 PERIOD.— 

8 ‘‘(A) IN GENERAL.—The retirement auto-en9 rollment credit period with respect to any eligi10 ble employer is the 3-taxable-year period begin11 ning with the first taxable year for which the 

12 employer includes an eligible automatic con13 tribution arrangement (as defined in section 

14 414(w)(3)) in a qualified employer plan (as de15 fined in section 4972(d)) sponsored by the em16 ployer. 

17 ‘‘(B) MAINTENANCE OF ARRANGEMENT.—No 

18 taxable year with respect to an employer shall be 

19 treated as occurring within the retirement auto20 enrollment credit period unless the arrangement 

21 described in subparagraph (A) is included in the 

22 plan for such year. 

23 ‘‘(3) NOT LIMITED TO NEW PLANS.—This sub24 section shall be applied without regard to subsection 

25 (c)(2).’’. 
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1 (b) EFFECTIVE DATE.—The amendments made by this 

2 section shall apply to taxable years beginning after Decem3 ber 31, 2018. 

4 SEC. 212. EXEMPTION FROM REQUIRED MINIMUM DIS5 TRIBUTION RULES FOR INDIVIDUALS WITH 

6 CERTAIN ACCOUNT BALANCES. 

7 (a) IN GENERAL.—Section 401(a)(9) is amended by 

8 adding at the end the following new subparagraph: 

9 ‘‘(H) EXCEPTION FROM REQUIRED MINIMUM

10 DISTRIBUTIONS DURING LIFE OF EMPLOYEE

11 WHERE ASSETS DO NOT EXCEED $50,000.— 

12 ‘‘(i) IN GENERAL.—If on the last day 

13 of any calendar year the aggregate value of 

14 an employee’s entire interest under all ap15 plicable eligible retirement plans does not 

16 exceed $50,000, then the requirements of 

17 subparagraph (A) with respect to any dis18 tribution relating to such year shall not 

19 apply with respect to such employee. 

20 ‘‘(ii) APPLICABLE ELIGIBLE RETIRE21 MENT PLAN.—For purposes of this subpara22 graph, the term ‘applicable eligible retire23 ment plan’ means an eligible retirement 

24 plan (as defined in section 402(c)(8)(B)) 

25 other than a defined benefit plan. 
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1 ‘‘(iii) LIMIT ON REQUIRED MINIMUM

2 DISTRIBUTION.—The required minimum 

3 distribution determined under subpara4 graph (A) for an employee under all appli5 cable eligible retirement plans shall not ex6 ceed an amount equal to the excess of— 

7 ‘‘(I) the aggregate value of an em8 ployee’s entire interest under such 

9 plans on the last day of the calendar 

10 year to which such distribution relates, 

11 over 

12 ‘‘(II) the dollar amount in effect 

13 under clause (i) for such calendar year. 

14 The Secretary in regulations or other guid15 ance may provide how such amount shall be 

16 distributed in the case of an individual 

17 with more than one applicable eligible re18 tirement plan. 

19 ‘‘(iv) INFLATION ADJUSTMENT.—In the 

20 case of any calendar year beginning after 

21 2019, the $50,000 amount in clause (i) shall 

22 be increased by an amount equal to— 

23 ‘‘(I) such dollar amount, multi24 plied by 
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1 ‘‘(II) the cost of living adjustment 

2 determined under section 1(f)(3) for 

3 the calendar year, determined by sub4 stituting ‘calendar year 2018’ for ‘cal5 endar year 2016’ in subparagraph 

6 (A)(ii) thereof. 

7 Any increase determined under this clause 

8 shall be rounded to the next lowest multiple 

9 of $5,000. 

10 ‘‘(v) PLAN ADMINISTRATOR RELIANCE

11 ON EMPLOYEE CERTIFICATION.—An appli12 cable eligible retirement plan described in 

13 clause (iii), (iv), (v), or (vi) of section 

14 402(c)(8)(B) shall not be treated as failing 

15 to meet the requirements of this paragraph 

16 in the case of any failure to make a re17 quired minimum distribution for a cal18 endar year if— 

19 ‘‘(I) the aggregate value of an em20 ployee’s entire interest under all appli21 cable eligible retirement plans of the 

22 employer on the last day of the cal23 endar year to which such distribution 

24 relates does not exceed the dollar 
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1 amount in effect for such year under 

2 clause (i), and 

3 ‘‘(II) the employee certifies that 

4 the aggregate value of the employee’s 

5 entire interest under all applicable eli6 gible retirement plans on the last day 

7 of the calendar year to which such dis8 tribution relates did not exceed the dol9 lar amount in effect for such year 

10 under clause (i). 

11 ‘‘(vi) AGGREGATION RULE.—All em12 ployers treated as a single employer under 

13 subsection (b), (c), (m), or (o) of section 414 

14 shall be treated as a single employer for 

15 purposes of clause (v).’’. 

16 (b) PLAN ADMINISTRATOR REPORTING.—Section 6047 

17 is amended by redesignating subsection (h) as subsection 

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

19 subsection: 

20 ‘‘(h) ACCOUNT BALANCE FOR PARTICIPANTS WHO

21 HAVE ATTAINED AGE 69.— 

22 ‘‘(1) IN GENERAL.—Not later than January 31 

23 of each year, the plan administrator (as defined in 

24 section 414(g)) of each applicable eligible retirement 

25 plan (as defined in section 401(a)(9)(H)) shall make 
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1 a return to the Secretary with respect to each partici2 pant of such plan who has attained age 69 as of the 

3 end of the preceding calendar year which states— 

4 ‘‘(A) the name and plan number of the 

5 plan, 

6 ‘‘(B) the name and address of the plan ad7 ministrator, 

8 ‘‘(C) the name, address, and taxpayer iden9 tification number of the participant, and 

10 ‘‘(D) the account balance of such partici11 pant as of the end of the preceding calendar 

12 year. 

13 ‘‘(2) STATEMENT FURNISHED TO PARTICIPANT.— 

14 Every person required to make a return under para15 graph (1) with respect to a participant shall furnish 

16 a copy of such return to such participant. 

17 ‘‘(3) APPLICATION TO INDIVIDUAL RETIREMENT

18 PLANS AND ANNUITIES.—In the case of an applicable 

19 eligible retirement plan described in clause (i) or (ii) 

20 of section 402(c)(8)(B)— 

21 ‘‘(A) any reference in this subsection to the 

22 plan administrator shall be treated as a ref23 erence to the trustee or issuer, as the case may 

24 be, and 
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1 ‘‘(B) any reference in this subsection to the 

2 participant shall be treated as a reference to the 

3 individual for whom such account or annuity is 

4 maintained.’’. 

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

6 section shall apply to distributions required to be made in 

7 calendar years beginning more than 120 days after the date 

8 of the enactment of this Act. 

9 SEC. 213. ELECTIVE DEFERRALS BY MEMBERS OF THE 

10 READY RESERVE OF A RESERVE COMPONENT 

11 OF THE ARMED FORCES. 

12 (a) IN GENERAL.—Section 402(g) is amended by add13 ing at the end the following new paragraph: 

14 ‘‘(9) ELECTIVE DEFERRALS BY MEMBERS OF

15 READY RESERVE.— 

16 ‘‘(A) IN GENERAL.—In the case of a quali17 fied ready reservist for any taxable year, the lim18 itations of subparagraphs (A) and (C) of para19 graph (1) shall be applied separately with re20 spect to— 

21 ‘‘(i) elective deferrals of such qualified 

22 ready reservist with respect to compensation 

23 described in subparagraph (B), and 

24 ‘‘(ii) all other elective deferrals of such 

25 qualified ready reservist. 
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1 ‘‘(B) QUALIFIED READY RESERVIST.—For 

2 purposes of this paragraph, the term ‘qualified 

3 ready reservist’ means any individual for any 

4 taxable year if such individual received com5 pensation for service as a member of the Ready 

6 Reserve of a reserve component (as defined in 

7 section 101 of title 37, United States Code) dur8 ing such taxable year.’’. 

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

10 section shall apply to plan years beginning after December 

11 31, 2018. 

12 Subtitle B—Administrative 

13 Improvements 

14 SEC. 221. PLAN ADOPTED BY FILING DUE DATE FOR YEAR 

15 MAY BE TREATED AS IN EFFECT AS OF CLOSE 

16 OF YEAR. 

17 (a) IN GENERAL.—Section 401(b) is amended— 

18 (1) by striking ‘‘RETROACTIVE CHANGES IN

19 PLAN.—A stock bonus’’ and inserting ‘‘PLAN AMEND20 MENTS.— 

21 ‘‘(1) CERTAIN RETROACTIVE CHANGES IN

22 PLAN.—A stock bonus’’, and 

23 (2) by adding at the end the following new para24 graph: 
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1 ‘‘(2) ADOPTION OF PLAN.—If an employer adopts 

2 a stock bonus, pension, profit-sharing, or annuity 

3 plan after the close of a taxable year but before the 

4 time prescribed by law for filing the employer’s re5 turn of tax for the taxable year (including extensions 

6 thereof), the employer may elect to treat the plan as 

7 having been adopted as of the last day of the taxable 

8 year.’’. 

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

10 section shall apply to plans adopted for taxable years begin11 ning after December 31, 2018. 

12 SEC. 222. MODIFICATION OF NONDISCRIMINATION RULES 

13 TO PROTECT OLDER, LONGER SERVICE PAR14 TICIPANTS. 

15 (a) IN GENERAL.—Section 401 is amended— 

16 (1) by redesignating subsection (o) as subsection 

17 (p), and 

18 (2) by inserting after subsection (n) the following 

19 new subsection: 

20 ‘‘(o) SPECIAL RULES FOR APPLYING NONDISCRIMINA21 TION RULES TO PROTECT OLDER, LONGER SERVICE AND

22 GRANDFATHERED PARTICIPANTS.— 

23 ‘‘(1) TESTING OF DEFINED BENEFIT PLANS WITH

24 CLOSED CLASSES OF PARTICIPANTS.— 
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1 ‘‘(A) BENEFITS, RIGHTS, OR FEATURES

2 PROVIDED TO CLOSED CLASSES.—A defined ben3 efit plan which provides benefits, rights, or fea4 tures to a closed class of participants shall not 

5 fail to satisfy the requirements of subsection 

6 (a)(4) by reason of the composition of such closed 

7 class or the benefits, rights, or features provided 

8 to such closed class, if— 

9 ‘‘(i) for the plan year as of which the 

10 class closes and the 2 succeeding plan years, 

11 such benefits, rights, and features satisfy the 

12 requirements of subsection (a)(4) (without 

13 regard to this subparagraph but taking into 

14 account the rules of subparagraph (I)), 

15 ‘‘(ii) after the date as of which the 

16 class was closed, any plan amendment 

17 which modifies the closed class or the bene18 fits, rights, and features provided to such 

19 closed class does not discriminate signifi20 cantly in favor of highly compensated em21 ployees, and 

22 ‘‘(iii) the class was closed before April 

23 5, 2017, or the plan is described in sub24 paragraph (C). 
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1 ‘‘(B) AGGREGATE TESTING WITH DEFINED

2 CONTRIBUTION PLANS PERMITTED ON A BENE3 FITS BASIS.— 

4 ‘‘(i) IN GENERAL.—For purposes of de5 termining compliance with subsection (a)(4) 

6 and section 410(b), a defined benefit plan 

7 described in clause (iii) may be aggregated 

8 and tested on a benefits basis with 1 or 

9 more defined contribution plans, including 

10 with the portion of 1 or more defined con11 tribution plans which— 

12 ‘‘(I) provides matching contribu13 tions (as defined in subsection 

14 (m)(4)(A)), 

15 ‘‘(II) provides annuity contracts 

16 described in section 403(b) which are 

17 purchased with matching contributions 

18 or nonelective contributions, or 

19 ‘‘(III) consists of an employee 

20 stock ownership plan (within the 

21 meaning of section 4975(e)(7)) or a tax 

22 credit employee stock ownership plan 

23 (within the meaning of section 409(a)). 

24 ‘‘(ii) SPECIAL RULES FOR MATCHING

25 CONTRIBUTIONS.—For purposes of clause 
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1 (i), if a defined benefit plan is aggregated 

2 with a portion of a defined contribution 

3 plan providing matching contributions— 

4 ‘‘(I) such defined benefit plan 

5 must also be aggregated with any por6 tion of such defined contribution plan 

7 which provides elective deferrals de8 scribed in subparagraph (A) or (C) of 

9 section 402(g)(3), and 

10 ‘‘(II) such matching contributions 

11 shall be treated in the same manner as 

12 nonelective contributions, including for 

13 purposes of applying the rules of sub14 section (l). 

15 ‘‘(iii) PLANS DESCRIBED.—A defined 

16 benefit plan is described in this clause if— 

17 ‘‘(I) the plan provides benefits to 

18 a closed class of participants, 

19 ‘‘(II) for the plan year as of which 

20 the class closes and the 2 succeeding 

21 plan years, the plan satisfies the re22 quirements of section 410(b) and sub23 section (a)(4) (without regard to this 

24 subparagraph but taking into account 

25 the rules of subparagraph (I)), 
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1 ‘‘(III) after the date as of which 

2 the class was closed, any plan amend3 ment which modifies the closed class or 

4 the benefits provided to such closed 

5 class does not discriminate signifi6 cantly in favor of highly compensated 

7 employees, and 

8 ‘‘(IV) the class was closed before 

9 April 5, 2017, or the plan is described 

10 in subparagraph (C). 

11 ‘‘(C) PLANS DESCRIBED.—A plan is de12 scribed in this subparagraph if, taking into ac13 count any predecessor plan— 

14 ‘‘(i) such plan has been in effect for at 

15 least 5 years as of the date the class is 

16 closed, and 

17 ‘‘(ii) during the 5-year period pre18 ceding the date the class is closed, there has 

19 not been a substantial increase in the cov20 erage or value of the benefits, rights, or fea21 tures described in subparagraph (A) or in 

22 the coverage or benefits under the plan de23 scribed in subparagraph (B)(iii) (whichever 

24 is applicable). 
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1 ‘‘(D) DETERMINATION OF SUBSTANTIAL IN2 CREASE FOR BENEFITS, RIGHTS, AND FEA3 TURES.—In applying subparagraph (C)(ii) for 

4 purposes of subparagraph (A)(iii), a plan shall 

5 be treated as having had a substantial increase 

6 in coverage or value of the benefits, rights, or fea7 tures described in subparagraph (A) during the 

8 applicable 5-year period only if, during such pe9 riod— 

10 ‘‘(i) the number of participants covered 

11 by such benefits, rights, or features on the 

12 date such period ends is more than 50 per13 cent greater than the number of such par14 ticipants on the first day of the plan year 

15 in which such period began, or 

16 ‘‘(ii) such benefits, rights, and features 

17 have been modified by 1 or more plan 

18 amendments in such a way that, as of the 

19 date the class is closed, the value of such 

20 benefits, rights, and features to the closed 

21 class as a whole is substantially greater 

22 than the value as of the first day of such 5- 

23 year period, solely as a result of such 

24 amendments. 
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1 ‘‘(E) DETERMINATION OF SUBSTANTIAL IN2 CREASE FOR AGGREGATE TESTING ON BENEFITS

3 BASIS.—In applying subparagraph (C)(ii) for 

4 purposes of subparagraph (B)(iii)(IV), a plan 

5 shall be treated as having had a substantial in6 crease in coverage or benefits during the applica7 ble 5-year period only if, during such period— 

8 ‘‘(i) the number of participants benefit9 ting under the plan on the date such period 

10 ends is more than 50 percent greater than 

11 the number of such participants on the first 

12 day of the plan year in which such period 

13 began, or 

14 ‘‘(ii) the average benefit provided to 

15 such participants on the date such period 

16 ends is more than 50 percent greater than 

17 the average benefit provided on the first day 

18 of the plan year in which such period 

19 began. 

20 ‘‘(F) CERTAIN EMPLOYEES DIS21 REGARDED.—For purposes of subparagraphs (D) 

22 and (E), any increase in coverage or value or in 

23 coverage or benefits, whichever is applicable, 

24 which is attributable to such coverage and value 

25 or coverage and benefits provided to employees— 
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1 ‘‘(i) who became participants as a re2 sult of a merger, acquisition, or similar 

3 event which occurred during the 7-year pe4 riod preceding the date the class is closed, or 

5 ‘‘(ii) who became participants by rea6 son of a merger of the plan with another 

7 plan which had been in effect for at least 5 

8 years as of the date of the merger, 

9 shall be disregarded, except that clause (ii) shall 

10 apply for purposes of subparagraph (D) only if, 

11 under the merger, the benefits, rights, or features 

12 under 1 plan are conformed to the benefits, 

13 rights, or features of the other plan prospectively. 

14 ‘‘(G) RULES RELATING TO AVERAGE BEN15 EFIT.—For purposes of subparagraph (E)— 

16 ‘‘(i) the average benefit provided to 

17 participants under the plan will be treated 

18 as having remained the same between the 2 

19 dates described in subparagraph (E)(ii) if 

20 the benefit formula applicable to such par21 ticipants has not changed between such 

22 dates, and 

23 ‘‘(ii) if the benefit formula applicable 

24 to 1 or more participants under the plan 

25 has changed between such 2 dates, then the 
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1 average benefit under the plan shall be con2 sidered to have increased by more than 50 

3 percent only if— 

4 ‘‘(I) the total amount determined 

5 under section 430(b)(1)(A)(i) for all 

6 participants benefitting under the plan 

7 for the plan year in which the 5-year 

8 period described in subparagraph (E) 

9 ends, exceeds 

10 ‘‘(II) the total amount determined 

11 under section 430(b)(1)(A)(i) for all 

12 such participants for such plan year, 

13 by using the benefit formula in effect 

14 for each such participant for the first 

15 plan year in such 5-year period, by 

16 more than 50 percent. 

17 In the case of a CSEC plan (as defined in 

18 section 414(y)), the normal cost of the plan 

19 (as determined under section 433(j)(1)(B)) 

20 shall be used in lieu of the amount deter21 mined under section 430(b)(1)(A)(i). 

22 ‘‘(H) TREATMENT AS SINGLE PLAN.—For 

23 purposes of subparagraphs (E) and (G), a plan 

24 described in section 413(c) shall be treated as a 
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1 single plan rather than as separate plans main2 tained by each employer in the plan. 

3 ‘‘(I) SPECIAL RULES.—For purposes of sub4 paragraphs (A)(i) and (B)(iii)(II), the following 

5 rules shall apply: 

6 ‘‘(i) In applying section 410(b)(6)(C), 

7 the closing of the class of participants shall 

8 not be treated as a significant change in 

9 coverage under section 410(b)(6)(C)(i)(II). 

10 ‘‘(ii) 2 or more plans shall not fail to 

11 be eligible to be aggregated and treated as 

12 a single plan solely by reason of having dif13 ferent plan years. 

14 ‘‘(iii) Changes in the employee popu15 lation shall be disregarded to the extent at16 tributable to individuals who become em17 ployees or cease to be employees, after the 

18 date the class is closed, by reason of a merg19 er, acquisition, divestiture, or similar event. 

20 ‘‘(iv) Aggregation and all other testing 

21 methodologies otherwise applicable under 

22 subsection (a)(4) and section 410(b) may be 

23 taken into account. 

24 The rule of clause (ii) shall also apply for pur25 poses of determining whether plans to which sub-
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1 paragraph (B)(i) applies may be aggregated and 

2 treated as 1 plan for purposes of determining 

3 whether such plans meet the requirements of sub4 section (a)(4) and section 410(b). 

5 ‘‘(J) SPUN-OFF PLANS.—For purposes of 

6 this paragraph, if a portion of a defined benefit 

7 plan described in subparagraph (A) or (B)(iii) 

8 is spun off to another employer and the spun-off 

9 plan continues to satisfy the requirements of— 

10 ‘‘(i) subparagraph (A)(i) or 

11 (B)(iii)(II), whichever is applicable, if the 

12 original plan was still within the 3-year pe13 riod described in such subparagraph at the 

14 time of the spin off, and 

15 ‘‘(ii) subparagraph (A)(ii) or 

16 (B)(iii)(III), whichever is applicable, 

17 the treatment under subparagraph (A) or (B) of 

18 the spun-off plan shall continue with respect to 

19 such other employer. 

20 ‘‘(2) TESTING OF DEFINED CONTRIBUTION

21 PLANS.— 

22 ‘‘(A) TESTING ON A BENEFITS BASIS.—A 

23 defined contribution plan shall be permitted to 

24 be tested on a benefits basis if— 
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1 ‘‘(i) such defined contribution plan 

2 provides make-whole contributions to a 

3 closed class of participants whose accruals 

4 under a defined benefit plan have been re5 duced or eliminated, 

6 ‘‘(ii) for the plan year of the defined 

7 contribution plan as of which the class eli8 gible to receive such make-whole contribu9 tions closes and the 2 succeeding plan years, 

10 such closed class of participants satisfies the 

11 requirements of section 410(b)(2)(A)(i) (de12 termined by applying the rules of para13 graph (1)(I)), 

14 ‘‘(iii) after the date as of which the 

15 class was closed, any plan amendment to 

16 the defined contribution plan which modi17 fies the closed class or the allocations, bene18 fits, rights, and features provided to such 

19 closed class does not discriminate signifi20 cantly in favor of highly compensated em21 ployees, and 

22 ‘‘(iv) the class was closed before April 

23 5, 2017, or the defined benefit plan under 

24 clause (i) is described in paragraph (1)(C) 
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1 (as applied for purposes of paragraph 

2 (1)(B)(iii)(IV)). 

3 ‘‘(B) AGGREGATION WITH PLANS INCLUDING

4 MATCHING CONTRIBUTIONS.— 

5 ‘‘(i) IN GENERAL.—With respect to 1 

6 or more defined contribution plans de7 scribed in subparagraph (A), for purposes of 

8 determining compliance with subsection 

9 (a)(4) and section 410(b), the portion of 

10 such plans which provides make-whole con11 tributions or other nonelective contributions 

12 may be aggregated and tested on a benefits 

13 basis with the portion of 1 or more other de14 fined contribution plans which— 

15 ‘‘(I) provides matching contribu16 tions (as defined in subsection 

17 (m)(4)(A)), 

18 ‘‘(II) provides annuity contracts 

19 described in section 403(b) which are 

20 purchased with matching contributions 

21 or nonelective contributions, or 

22 ‘‘(III) consists of an employee 

23 stock ownership plan (within the 

24 meaning of section 4975(e)(7)) or a tax 
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1 credit employee stock ownership plan 

2 (within the meaning of section 409(a)). 

3 ‘‘(ii) SPECIAL RULES FOR MATCHING

4 CONTRIBUTIONS.—Rules similar to the rules 

5 of paragraph (1)(B)(ii) shall apply for pur6 poses of clause (i). 

7 ‘‘(C) SPECIAL RULES FOR TESTING DE8 FINED CONTRIBUTION PLAN FEATURES PRO9 VIDING MATCHING CONTRIBUTIONS TO CERTAIN

10 OLDER, LONGER SERVICE PARTICIPANTS.—In the 

11 case of a defined contribution plan which pro12 vides benefits, rights, or features to a closed class 

13 of participants whose accruals under a defined 

14 benefit plan have been reduced or eliminated, the 

15 plan shall not fail to satisfy the requirements of 

16 subsection (a)(4) solely by reason of the composi17 tion of the closed class or the benefits, rights, or 

18 features provided to such closed class if the de19 fined contribution plan and defined benefit plan 

20 otherwise meet the requirements of subparagraph 

21 (A) but for the fact that the make-whole con22 tributions under the defined contribution plan 

23 are made in whole or in part through matching 

24 contributions. 
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1 ‘‘(D) SPUN-OFF PLANS.—For purposes of 

2 this paragraph, if a portion of a defined con3 tribution plan described in subparagraph (A) or 

4 (C) is spun off to another employer, the treat5 ment under subparagraph (A) or (C) of the 

6 spun-off plan shall continue with respect to the 

7 other employer if such plan continues to comply 

8 with the requirements of clauses (ii) (if the origi9 nal plan was still within the 3-year period de10 scribed in such clause at the time of the spin off) 

11 and (iii) of subparagraph (A), as determined for 

12 purposes of subparagraph (A) or (C), whichever 

13 is applicable. 

14 ‘‘(3) DEFINITIONS.—For purposes of this sub15 section— 

16 ‘‘(A) MAKE-WHOLE CONTRIBUTIONS.—Ex17 cept as otherwise provided in paragraph (2)(C), 

18 the term ‘make-whole contributions’ means non19 elective allocations for each employee in the class 

20 which are reasonably calculated, in a consistent 

21 manner, to replace some or all of the retirement 

22 benefits which the employee would have received 

23 under the defined benefit plan and any other 

24 plan or qualified cash or deferred arrangement 

25 under subsection (k)(2) if no change had been 
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1 made to such defined benefit plan and such other 

2 plan or arrangement. For purposes of the pre3 ceding sentence, consistency shall not be required 

4 with respect to employees who were subject to dif5 ferent benefit formulas under the defined benefit 

6 plan. 

7 ‘‘(B) REFERENCES TO CLOSED CLASS OF

8 PARTICIPANTS.—References to a closed class of 

9 participants and similar references to a closed 

10 class shall include arrangements under which 1 

11 or more classes of participants are closed, except 

12 that 1 or more classes of participants closed on 

13 different dates shall not be aggregated for pur14 poses of determining the date any such class was 

15 closed. 

16 ‘‘(C) HIGHLY COMPENSATED EMPLOYEE.— 

17 The term ‘highly compensated employee’ has the 

18 meaning given such term in section 414(q).’’. 

19 (b) PARTICIPATION REQUIREMENTS.—Section 

20 401(a)(26) is amended by adding at the end the following 

21 new subparagraph: 

22 ‘‘(I) PROTECTED PARTICIPANTS.— 

23 ‘‘(i) IN GENERAL.—A plan shall be 

24 deemed to satisfy the requirements of sub25 paragraph (A) if— 
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1 ‘‘(I) the plan is amended— 

2 ‘‘(aa) to cease all benefit ac3 cruals, or 

4 ‘‘(bb) to provide future ben5 efit accruals only to a closed class 

6 of participants, 

7 ‘‘(II) the plan satisfies subpara8 graph (A) (without regard to this sub9 paragraph) as of the effective date of 

10 the amendment, and 

11 ‘‘(III) the amendment was adopt12 ed before April 5, 2017, or the plan is 

13 described in clause (ii). 

14 ‘‘(ii) PLANS DESCRIBED.—A plan is 

15 described in this clause if the plan would be 

16 described in subsection (o)(1)(C), as applied 

17 for purposes of subsection (o)(1)(B)(iii)(IV) 

18 and by treating the effective date of the 

19 amendment as the date the class was closed 

20 for purposes of subsection (o)(1)(C). 

21 ‘‘(iii) SPECIAL RULES.—For purposes 

22 of clause (i)(II), in applying section 

23 410(b)(6)(C), the amendments described in 

24 clause (i) shall not be treated as a signifi-
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1 cant change in coverage under section 

2 410(b)(6)(C)(i)(II). 

3 ‘‘(iv) SPUN-OFF PLANS.—For purposes 

4 of this subparagraph, if a portion of a plan 

5 described in clause (i) is spun off to another 

6 employer, the treatment under clause (i) of 

7 the spun-off plan shall continue with respect 

8 to the other employer.’’. 

9 (c) EFFECTIVE DATE.— 

10 (1) IN GENERAL.—Except as provided in para11 graph (2), the amendments made by this section shall 

12 take effect on the date of the enactment of this Act, 

13 without regard to whether any plan modifications re14 ferred to in such amendments are adopted or effective 

15 before, on, or after such date of enactment. 

16 (2) SPECIAL RULES.— 

17 (A) ELECTION OF EARLIER APPLICATION.— 

18 At the election of the plan sponsor, the amend19 ments made by this section shall apply to plan 

20 years beginning after December 31, 2013. 

21 (B) CLOSED CLASSES OF PARTICIPANTS.— 

22 For purposes of paragraphs (1)(A)(iii), 

23 (1)(B)(iii)(IV), and (2)(A)(iv) of section 401(o) 

24 of the Internal Revenue Code of 1986 (as added 

25 by this section), a closed class of participants 
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1 shall be treated as being closed before April 5, 

2 2017, if the plan sponsor’s intention to create 

3 such closed class is reflected in formal written 

4 documents and communicated to participants be5 fore such date. 

6 (C) CERTAIN POST-ENACTMENT PLAN

7 AMENDMENTS.—A plan shall not be treated as 

8 failing to be eligible for the application of section 

9 401(o)(1)(A), 401(o)(1)(B)(iii), or 401(a)(26) of 

10 such Code (as added by this section) to such plan 

11 solely because in the case of— 

12 (i) such section 401(o)(1)(A), the plan 

13 was amended before the date of the enact14 ment of this Act to eliminate 1 or more ben15 efits, rights, or features, and is further 

16 amended after such date of enactment to 

17 provide such previously eliminated benefits, 

18 rights, or features to a closed class of par19 ticipants, or 

20 (ii) such section 401(o)(1)(B)(iii) or 

21 section 401(a)(26), the plan was amended 

22 before the date of the enactment of this Act 

23 to cease all benefit accruals, and is further 

24 amended after such date of enactment to 

25 provide benefit accruals to a closed class of 
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1 participants. Any such section shall only 

2 apply if the plan otherwise meets the re3 quirements of such section and in applying 

4 such section, the date the class of partici5 pants is closed shall be the effective date of 

6 the later amendment. 

7 SEC. 223. FIDUCIARY SAFE HARBOR FOR SELECTION OF 

8 LIFETIME INCOME PROVIDER. 

9 Section 404 of the Employee Retirement Income Secu10 rity Act of 1974 (29 U.S.C. 1104) is amended by adding 

11 at the end the following: 

12 ‘‘(e) SAFE HARBOR FOR ANNUITY SELECTION.— 

13 ‘‘(1) IN GENERAL.—With respect to the selection 

14 of an insurer for a guaranteed retirement income con15 tract, the requirements of subsection (a)(1)(B) will be 

16 deemed to be satisfied if a fiduciary— 

17 ‘‘(A) engages in an objective, thorough, and 

18 analytical search for the purpose of identifying 

19 insurers from which to purchase such contracts; 

20 ‘‘(B) with respect to each insurer identified 

21 under subparagraph (A)— 

22 ‘‘(i) considers the financial capability 

23 of such insurer to satisfy its obligations 

24 under the guaranteed retirement income 

25 contract; and 
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1 ‘‘(ii) considers the cost (including fees 

2 and commissions) of the guaranteed retire3 ment income contract offered by the insurer 

4 in relation to the benefits and product fea5 tures of the contract and administrative 

6 services to be provided under such contract; 

7 and 

8 ‘‘(C) on the basis of such consideration, con9 cludes that— 

10 ‘‘(i) at the time of the selection, the in11 surer is financially capable of satisfying its 

12 obligations under the guaranteed retirement 

13 income contract; and 

14 ‘‘(ii) the relative cost of the selected 

15 guaranteed retirement income contract as 

16 described in subparagraph (B)(ii) is reason17 able. 

18 ‘‘(2) FINANCIAL CAPABILITY OF THE INSURER.— 

19 A fiduciary will be deemed to satisfy the requirements 

20 of paragraphs (1)(B)(i) and (1)(C)(i) if— 

21 ‘‘(A) the fiduciary obtains written represen22 tations from the insurer that— 

23 ‘‘(i) the insurer is licensed to offer 

24 guaranteed retirement income contracts; 
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1 ‘‘(ii) the insurer, at the time of selec2 tion and for each of the immediately pre3 ceding 7 plan years— 

4 ‘‘(I) operates under a certificate of 

5 authority from the insurance commis6 sioner of its domiciliary State which 

7 has not been revoked or suspended; 

8 ‘‘(II) has filed audited financial 

9 statements in accordance with the laws 

10 of its domiciliary State under applica11 ble statutory accounting principles; 

12 ‘‘(III) maintains (and has main13 tained) reserves which satisfies all the 

14 statutory requirements of all States 

15 where the insurer does business; and 

16 ‘‘(IV) is not operating under an 

17 order of supervision, rehabilitation, or 

18 liquidation; 

19 ‘‘(iii) the insurer undergoes, at least 

20 every 5 years, a financial examination 

21 (within the meaning of the law of its domi22 ciliary State) by the insurance commis23 sioner of the domiciliary State (or rep24 resentative, designee, or other party ap25 proved by such commissioner); and 
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1 ‘‘(iv) the insurer will notify the fidu2 ciary of any change in circumstances occur3 ring after the provision of the representa4 tions in clauses (i), (ii), and (iii) which 

5 would preclude the insurer from making 

6 such representations at the time of issuance 

7 of the guaranteed retirement income con8 tract; and 

9 ‘‘(B) after receiving such representations 

10 and as of the time of selection, the fiduciary has 

11 not received any notice described in subpara12 graph (A)(iv) and is in possession of no other in13 formation which would cause the fiduciary to 

14 question the representations provided. 

15 ‘‘(3) NO REQUIREMENT TO SELECT LOWEST

16 COST.—Nothing in this subsection shall be construed 

17 to require a fiduciary to select the lowest cost con18 tract. A fiduciary may consider the value of a con19 tract, including features and benefits of the contract 

20 and attributes of the insurer (including, without limi21 tation, the insurer’s financial strength) in conjunc22 tion with the cost of the contract. 

23 ‘‘(4) TIME OF SELECTION.— 

24 ‘‘(A) IN GENERAL.—For purposes of this 

25 subsection, the time of selection is— 
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1 ‘‘(i) the time that the insurer and the 

2 contract are selected for distribution of ben3 efits to a specific participant or beneficiary; 

4 or 

5 ‘‘(ii) if the fiduciary periodically re6 views the continuing appropriateness of the 

7 conclusion described in paragraph (1)(C) 

8 with respect to a selected insurer, taking 

9 into account the considerations described in 

10 such paragraph, the time that the insurer 

11 and the contract are selected to provide ben12 efits at future dates to participants or bene13 ficiaries under the plan. 

14 Nothing in the preceding sentence shall be con15 strued to require the fiduciary to review the ap16 propriateness of a selection after the purchase of 

17 a contract for a participant or beneficiary. 

18 ‘‘(B) PERIODIC REVIEW.—A fiduciary will 

19 be deemed to have conducted the periodic review 

20 described in subparagraph (A)(ii) if the fidu21 ciary obtains the written representations de22 scribed in clauses (i), (ii), and (iii) of paragraph 

23 (2)(A) from the insurer on an annual basis, un24 less the fiduciary receives any notice described in 

25 paragraph (2)(A)(iv) or otherwise becomes aware 
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1 of facts that would cause the fiduciary to ques2 tion such representations. 

3 ‘‘(5) LIMITED LIABILITY.—A fiduciary which 

4 satisfies the requirements of this subsection shall not 

5 be liable following the distribution of any benefit, or 

6 the investment by or on behalf of a participant or 

7 beneficiary pursuant to the selected guaranteed retire8 ment income contract, for any losses that may result 

9 to the participant or beneficiary due to an insurer’s 

10 inability to satisfy its financial obligations under the 

11 terms of such contract. 

12 ‘‘(6) DEFINITIONS.—For purposes of this sub13 section— 

14 ‘‘(A) INSURER.—The term ‘insurer’ means 

15 an insurance company, insurance service, or in16 surance organization, including affiliates of such 

17 companies. 

18 ‘‘(B) GUARANTEED RETIREMENT INCOME

19 CONTRACT.—The term ‘guaranteed retirement in20 come contract’ means an annuity contract for a 

21 fixed term or a contract (or provision or feature 

22 thereof) which provides guaranteed benefits an23 nually (or more frequently) for at least the re24 mainder of the life of the participant or the joint 

25 lives of the participant and the participant’s 
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1 designated beneficiary as part of an individual 

2 account plan.’’. 

3 SEC. 224. DISCLOSURE REGARDING LIFETIME INCOME. 

4 (a) IN GENERAL.—Subparagraph (B) of section 

5 105(a)(2) of the Employee Retirement Income Security Act 

6 of 1974 (29 U.S.C. 1025(a)(2)) is amended— 

7 (1) in clause (i), by striking ‘‘and’’ at the end; 

8 (2) in clause (ii), by striking ‘‘diversification.’’ 

9 and inserting ‘‘diversification, and’’; and 

10 (3) by inserting at the end the following: 

11 ‘‘(iii) the lifetime income disclosure de12 scribed in subparagraph (D)(i). 

13 In the case of pension benefit statements de14 scribed in clause (i) of paragraph (1)(A), a life15 time income disclosure under clause (iii) of this 

16 subparagraph shall be required to be included in 

17 only one pension benefit statement during any 

18 one 12-month period.’’. 

19 (b) LIFETIME INCOME.—Paragraph (2) of section 

20 105(a) of the Employee Retirement Income Security Act of 

21 1974 (29 U.S.C. 1025(a)) is amended by adding at the end 

22 the following new subparagraph: 

23 ‘‘(D) LIFETIME INCOME DISCLOSURE.— 

24 ‘‘(i) IN GENERAL.— 
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1 ‘‘(I) DISCLOSURE.—A lifetime in2 come disclosure shall set forth the life3 time income stream equivalent of the 

4 total benefits accrued with respect to 

5 the participant or beneficiary. 

6 ‘‘(II) LIFETIME INCOME STREAM

7 EQUIVALENT OF THE TOTAL BENEFITS

8 ACCRUED.—For purposes of this sub9 paragraph, the term ‘lifetime income 

10 stream equivalent of the total benefits 

11 accrued’ means the amount of monthly 

12 payments the participant or bene13 ficiary would receive if the total ac14 crued benefits of such participant or 

15 beneficiary were used to provide life16 time income streams described in sub17 clause (III), based on assumptions 

18 specified in rules prescribed by the Sec19 retary. 

20 ‘‘(III) LIFETIME INCOME

21 STREAMS.—The lifetime income 

22 streams described in this subclause are 

23 a qualified joint and survivor annuity 

24 (as defined in section 205(d)), based on 

25 assumptions specified in rules pre-
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1 scribed by the Secretary, including the 

2 assumption that the participant or 

3 beneficiary has a spouse of equal age, 

4 and a single life annuity. Such lifetime 

5 income streams may have a term cer6 tain or other features to the extent per7 mitted under rules prescribed by the 

8 Secretary. 

9 ‘‘(ii) MODEL DISCLOSURE.—Not later 

10 than 1 year after the date of the enactment 

11 of the Retirement, Savings, and Other Tax 

12 Relief Act of 2018, the Secretary shall issue 

13 a model lifetime income disclosure, written 

14 in a manner so as to be understood by the 

15 average plan participant, which— 

16 ‘‘(I) explains that the lifetime in17 come stream equivalent is only pro18 vided as an illustration; 

19 ‘‘(II) explains that the actual 

20 payments under the lifetime income 

21 stream described in clause (i)(III) 

22 which may be purchased with the total 

23 benefits accrued will depend on numer24 ous factors and may vary substantially 
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1 from the lifetime income stream equiv2 alent in the disclosures; 

3 ‘‘(III) explains the assumptions 

4 upon which the lifetime income stream 

5 equivalent was determined; and 

6 ‘‘(IV) provides such other similar 

7 explanations as the Secretary considers 

8 appropriate. 

9 ‘‘(iii) ASSUMPTIONS AND RULES.—Not 

10 later than 1 year after the date of the enact11 ment of the Retirement, Savings, and Other 

12 Tax Relief Act of 2018, the Secretary 

13 shall— 

14 ‘‘(I) prescribe assumptions which 

15 administrators of individual account 

16 plans may use in converting total ac17 crued benefits into lifetime income 

18 stream equivalents for purposes of this 

19 subparagraph; and 

20 ‘‘(II) issue interim final rules 

21 under clause (i). 

22 In prescribing assumptions under subclause 

23 (I), the Secretary may prescribe a single set 

24 of specific assumptions (in which case the 

25 Secretary may issue tables or factors which 
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1 facilitate such conversions), or ranges of 

2 permissible assumptions. To the extent that 

3 an accrued benefit is or may be invested in 

4 a lifetime income stream described in clause 

5 (i)(III), the assumptions prescribed under 

6 subclause (I) shall, to the extent appro7 priate, permit administrators of individual 

8 account plans to use the amounts payable 

9 under such lifetime income stream as a life10 time income stream equivalent. 

11 ‘‘(iv) LIMITATION ON LIABILITY.—No 

12 plan fiduciary, plan sponsor, or other per13 son shall have any liability under this title 

14 solely by reason of the provision of lifetime 

15 income stream equivalents which are de16 rived in accordance with the assumptions 

17 and rules described in clause (iii) and 

18 which include the explanations contained in 

19 the model lifetime income disclosure de20 scribed in clause (ii). This clause shall 

21 apply without regard to whether the provi22 sion of such lifetime income stream equiva23 lent is required by subparagraph (B)(iii). 

24 ‘‘(v) EFFECTIVE DATE.—The require25 ment in subparagraph (B)(iii) shall apply 
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1 to pension benefit statements furnished more 

2 than 12 months after the latest of the 

3 issuance by the Secretary of— 

4 ‘‘(I) interim final rules under 

5 clause (i); 

6 ‘‘(II) the model disclosure under 

7 clause (ii); or 

8 ‘‘(III) the assumptions under 

9 clause (iii).’’. 

10 SEC. 225. MODIFICATION OF PBGC PREMIUMS FOR CSEC 

11 PLANS. 

12 (a) FLAT RATE PREMIUM.—Subparagraph (A) of sec13 tion 4006(a)(3) of the Employee Retirement Income Secu14 rity Act of 1974 (29 U.S.C. 1306(a)(3)) is amended— 

15 (1) in clause (i), by striking ‘‘plan,’’ and insert16 ing ‘‘plan other than a CSEC plan (as defined in sec17 tion 210(f)(1))’’; 

18 (2) in clause (v), by striking ‘‘or’’ at the end; 

19 (3) in clause (vi), by striking the period at the 

20 end and inserting ‘‘, or’’; and 

21 (4) by adding at the end the following new 

22 clause: 

23 ‘‘(vii) in the case of a CSEC plan (as 

24 defined in section 210(f)(1)), for plan years 

25 beginning after December 31, 2018, for each 
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1 individual who is a participant in such 

2 plan during the plan year an amount equal 

3 to the sum of— 

4 ‘‘(I) the additional premium (if 

5 any) determined under subparagraph 

6 (E), and 

7 ‘‘(II) $19.’’. 

8 (b) VARIABLE RATE PREMIUM.— 

9 (1) UNFUNDED VESTED BENEFITS.— 

10 (A) IN GENERAL.—Subparagraph (E) of 

11 section 4006(a)(3) of the Employee Retirement 

12 Income Security Act of 1974 (29 U.S.C. 

13 1306(a)(3)) is amended by adding at the end the 

14 following new clause: 

15 ‘‘(v) For purposes of clause (ii), in the 

16 case of a CSEC plan (as defined in section 

17 210(f)(1)), the term ‘unfunded vested bene18 fits’ means, for plan years beginning after 

19 December 31, 2018, the excess (if any) of— 

20 ‘‘(I) the funding liability of the 

21 plan as determined under section 

22 306(j)(5)(C) for the plan year by only 

23 taking into account vested benefits, 

24 over 
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1 ‘‘(II) the fair market value of 

2 plan assets for the plan year which are 

3 held by the plan on the valuation 

4 date.’’. 

5 (B) CONFORMING AMENDMENT.—Clause 

6 (iii) of section 4006(a)(3)(E) of such Act (29 

7 U.S.C. 1306(a)(3)(E)) is amended by striking 

8 ‘‘For purposes’’ and inserting ‘‘Except as pro9 vided in clause (v), for purposes’’. 

10 (2) APPLICABLE DOLLAR AMOUNT.— 

11 (A) IN GENERAL.—Paragraph (8) of section 

12 4006(a) of such Act (29 U.S.C. 1306(a)) is 

13 amended by adding at the end the following new 

14 subparagraph: 

15 ‘‘(E) CSEC PLANS.—In the case of a CSEC 

16 plan (as defined in section 210(f)(1)), the appli17 cable dollar amount shall be $9.’’. 

18 (B) CONFORMING AMENDMENT.—Subpara19 graph (A) of section 4006(a)(8) of such Act (29 

20 U.S.C. 1306(a)(8)) is amended by striking ‘‘(B) 

21 and (C)’’ and inserting ‘‘(B), (C), and (E)’’. 
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1 Subtitle C—Other Savings 

2 Provisions 

3 SEC. 231. EXPANSION OF SECTION 529 PLANS. 

4 (a) DISTRIBUTIONS FOR CERTAIN EXPENSES ASSOCI5 ATED WITH REGISTERED APPRENTICESHIP PROGRAMS.— 

6 Section 529(c) of the Internal Revenue Code of 1986 is 

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

8 ‘‘(8) TREATMENT OF CERTAIN EXPENSES ASSOCI9 ATED WITH REGISTERED APPRENTICESHIP PRO10 GRAMS.—Any reference in this subsection to the term 

11 ‘qualified higher education expense’ shall include a 

12 reference to expenses for fees, books, supplies, and 

13 equipment required for the participation of a des14 ignated beneficiary in an apprenticeship program 

15 registered and certified with the Secretary of Labor 

16 under section 1 of the National Apprenticeship Act 

17 (29 U.S.C. 50).’’. 

18 (b) DISTRIBUTIONS FOR CERTAIN HOMESCHOOLING

19 EXPENSES.—Section 529(c)(7) of such Code is amended by 

20 striking ‘‘include a reference to’’ and all that follows and 

21 inserting ‘‘include a reference to— 

22 ‘‘(A) expenses for tuition in connection with 

23 enrollment or attendance of a designated bene24 ficiary at an elementary or secondary public, 

25 private, or religious school, and 
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1 ‘‘(B) expenses, with respect to a designated 

2 beneficiary, for— 

3 ‘‘(i) curriculum and curricular mate4 rials, 

5 ‘‘(ii) books or other instructional mate6 rials, 

7 ‘‘(iii) online educational materials, 

8 ‘‘(iv) tuition for tutoring or edu9 cational classes outside of the home (but 

10 only if the tutor or class instructor is not 

11 related (within the meaning of section 

12 152(d)(2)) to the student), 

13 ‘‘(v) dual enrollment in an institution 

14 of higher education, and 

15 ‘‘(vi) educational therapies for students 

16 with disabilities, 

17 in connection with a homeschool (whether treated 

18 as a homeschool or a private school for purposes 

19 of applicable State law).’’. 

20 (c) DISTRIBUTIONS FOR QUALIFIED EDUCATION LOAN

21 REPAYMENTS.— 

22 (1) IN GENERAL.—Section 529(c) of such Code, 

23 as amended by subsection (a), is amended by adding 

24 at the end the following new paragraph: 
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1 ‘‘(9) TREATMENT OF QUALIFIED EDUCATION

2 LOAN REPAYMENTS.— 

3 ‘‘(A) IN GENERAL.—Any reference in this 

4 subsection to the term ‘qualified higher education 

5 expense’ shall include a reference to amounts 

6 paid as principal or interest on any qualified 

7 education loan (as defined in section 221(d)) of 

8 the designated beneficiary or a sibling of the des9 ignated beneficiary. 

10 ‘‘(B) LIMITATION.—The amount of distribu11 tions treated as a qualified higher education ex12 pense under this paragraph with respect to the 

13 loans of any individual shall not exceed $10,000 

14 (reduced by the amount of distributions so treat15 ed for all prior taxable years). 

16 ‘‘(C) SPECIAL RULES FOR SIBLINGS OF THE

17 DESIGNATED BENEFICIARY.— 

18 ‘‘(i) SEPARATE ACCOUNTING.—For 

19 purposes of subparagraph (B) and sub20 section (d), amounts treated as a qualified 

21 higher education expense with respect to the 

22 loans of a sibling of the designated bene23 ficiary shall be taken into account with re24 spect to such sibling and not with respect to 

25 such designated beneficiary. 
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1 ‘‘(ii) SIBLING DEFINED.—For purposes 

2 of this paragraph, the term ‘sibling’ means 

3 an individual who bears a relationship to 

4 the designated beneficiary which is de5 scribed in section 152(d)(2)(B).’’. 

6 (2) COORDINATION WITH DEDUCTION FOR STU7 DENT LOAN INTEREST.—Section 221(e)(1) of such 

8 Code is amended by adding at the end the following: 

9 ‘‘The deduction otherwise allowable under subsection 

10 (a) (prior to the application of subsection (b)) to the 

11 taxpayer for any taxable year shall be reduced (but 

12 not below zero) by so much of the distributions treated 

13 as a qualified higher education expense under section 

14 529(c)(9) with respect to loans of the taxpayer as 

15 would be includible in gross income under section 

16 529(c)(3)(A) for such taxable year but for such treat17 ment.’’. 

18 (d) DISTRIBUTIONS FOR CERTAIN ELEMENTARY AND

19 SECONDARY SCHOOL EXPENSES IN ADDITION TO TUI20 TION.—Section 529(c)(7)(A), as amended by subsection (b), 

21 is amended to read as follows: 

22 ‘‘(A) expenses described in section 

23 530(b)(3)(A)(i) in connection with enrollment or 

24 attendance of a designated beneficiary at an ele-
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1 mentary or secondary public, private, or reli2 gious school, and’’. 

3 (e) UNBORN CHILDREN ALLOWED AS ACCOUNT BENE4 FICIARIES.—Section 529(e) is amended by adding at the 

5 end the following new paragraph: 

6 ‘‘(6) TREATMENT OF UNBORN CHILDREN.— 

7 ‘‘(A) IN GENERAL.—Nothing shall prevent 

8 an unborn child from being treated as a des9 ignated beneficiary or an individual under this 

10 section. 

11 ‘‘(B) UNBORN CHILD.—For purposes of this 

12 paragraph— 

13 ‘‘(i) IN GENERAL.—The term ‘unborn 

14 child’ means a child in utero. 

15 ‘‘(ii) CHILD IN UTERO.—The term 

16 ‘child in utero’ means a member of the spe17 cies homo sapiens, at any stage of develop18 ment, who is carried in the womb.’’. 

19 (f) EFFECTIVE DATES.— 

20 (1) IN GENERAL.—Except as otherwise provided 

21 in this subsection, the amendments made by this sec22 tion shall apply to distributions made after December 

23 31, 2018. 

24 (2) UNBORN CHILDREN ALLOWED AS ACCOUNT

25 BENEFICIARIES.—The amendment made by subsection 
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1 (e) shall apply to contributions made after December 

2 31, 2018. 

3 SEC. 232. PENALTY-FREE WITHDRAWALS FROM RETIRE4 MENT PLANS FOR INDIVIDUALS IN CASE OF 

5 BIRTH OF CHILD OR ADOPTION. 

6 (a) IN GENERAL.—Section 72(t)(2) is amended by 

7 adding at the end the following new subparagraph: 

8 ‘‘(H) DISTRIBUTIONS FROM RETIREMENT

9 PLANS IN CASE OF BIRTH OF CHILD OR ADOP10 TION.— 

11 ‘‘(i) IN GENERAL.—Any qualified birth 

12 or adoption distribution. 

13 ‘‘(ii) LIMITATION.—The aggregate 

14 amount which may be treated as qualified 

15 birth or adoption distributions by any indi16 vidual with respect to any birth or adoption 

17 shall not exceed $7,500. 

18 ‘‘(iii) QUALIFIED BIRTH OR ADOPTION

19 DISTRIBUTION.—For purposes of this sub20 paragraph— 

21 ‘‘(I) IN GENERAL.—The term 

22 ‘qualified birth or adoption distribu23 tion’ means any distribution from an 

24 applicable eligible retirement plan to 

25 an individual if made during the 1- 
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1 year period beginning on the date on 

2 which a child of the individual is born 

3 or on which the legal adoption by the 

4 individual of an eligible child is final5 ized. 

6 ‘‘(II) ELIGIBLE CHILD.—The term 

7 ‘eligible child’ means any individual 

8 (other than a child of the taxpayer’s 

9 spouse) who has not attained age 18 or 

10 is physically or mentally incapable of 

11 self-support. 

12 ‘‘(iv) TREATMENT OF PLAN DISTRIBU13 TIONS.— 

14 ‘‘(I) IN GENERAL.—If a distribu15 tion to an individual would (without 

16 regard to clause (ii)) be a qualified 

17 birth or adoption distribution, a plan 

18 shall not be treated as failing to meet 

19 any requirement of this title merely be20 cause the plan treats the distribution 

21 as a qualified birth or adoption dis22 tribution, unless the aggregate amount 

23 of such distributions from all plans 

24 maintained by the employer (and any 

25 member of any controlled group which 
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1 includes the employer) to such indi2 vidual exceeds $7,500. 

3 ‘‘(II) CONTROLLED GROUP.—For 

4 purposes of subclause (I), the term 

5 ‘controlled group’ means any group 

6 treated as a single employer under sub7 section (b), (c), (m), or (o) of section 

8 414. 

9 ‘‘(v) AMOUNT DISTRIBUTED MAY BE

10 REPAID.— 

11 ‘‘(I) IN GENERAL.—Any indi12 vidual who receives a qualified birth or 

13 adoption distribution may make one or 

14 more contributions in an aggregate 

15 amount not to exceed the amount of 

16 such distribution to an applicable eli17 gible retirement plan of which such in18 dividual is a beneficiary and to which 

19 a rollover contribution of such dis20 tribution could be made under section 

21 402(c), 403(a)(4), 403(b)(8), 408(d)(3), 

22 or 457(e)(16), as the case may be. 

23 ‘‘(II) LIMITATION ON CONTRIBU24 TIONS TO APPLICABLE ELIGIBLE RE25 TIREMENT PLANS OTHER THAN
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1 IRAS.—The aggregate amount of con2 tributions made by an individual 

3 under subclause (I) to any applicable 

4 eligible retirement plan which is not 

5 an individual retirement plan shall 

6 not exceed the aggregate amount of 

7 qualified birth or adoption distribu8 tions which are made from such plan 

9 to such individual. Subclause (I) shall 

10 not apply to contributions to any ap11 plicable eligible retirement plan which 

12 is not an individual retirement plan 

13 unless the individual is eligible to 

14 make contributions (other than those 

15 described in subclause (I)) to such ap16 plicable eligible retirement plan. 

17 ‘‘(III) TREATMENT OF REPAY18 MENTS OF DISTRIBUTIONS FROM AP19 PLICABLE ELIGIBLE RETIREMENT

20 PLANS OTHER THAN IRAS.—If a con21 tribution is made under subclause (I) 

22 with respect to a qualified birth or 

23 adoption distribution from an applica24 ble eligible retirement plan other than 

25 an individual retirement plan, then 
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1 the taxpayer shall, to the extent of the 

2 amount of the contribution, be treated 

3 as having received such distribution in 

4 an eligible rollover distribution (as de5 fined in section 402(c)(4)) and as hav6 ing transferred the amount to the ap7 plicable eligible retirement plan in a 

8 direct trustee to trustee transfer within 

9 60 days of the distribution. 

10 ‘‘(IV) TREATMENT OF REPAY11 MENTS FOR DISTRIBUTIONS FROM

12 IRAS.—If a contribution is made under 

13 subclause (I) with respect to a quali14 fied birth or adoption distribution 

15 from an individual retirement plan, 

16 then, to the extent of the amount of the 

17 contribution, such distribution shall be 

18 treated as a distribution described in 

19 section 408(d)(3) and as having been 

20 transferred to the applicable eligible re21 tirement plan in a direct trustee to 

22 trustee transfer within 60 days of the 

23 distribution. 
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1 ‘‘(vi) DEFINITION AND SPECIAL

2 RULES.—For purposes of this subpara3 graph— 

4 ‘‘(I) APPLICABLE ELIGIBLE RE5 TIREMENT PLAN.—The term ‘applica6 ble eligible retirement plan’ means an 

7 eligible retirement plan (as defined in 

8 section 402(c)(8)(B)) other than a de9 fined benefit plan. 

10 ‘‘(II) EXEMPTION OF DISTRIBU11 TIONS FROM TRUSTEE TO TRUSTEE

12 TRANSFER AND WITHHOLDING

13 RULES.—For purposes of sections 

14 401(a)(31), 402(f), and 3405, a quali15 fied birth or adoption distribution 

16 shall not be treated as an eligible roll17 over distribution. 

18 ‘‘(III) TAXPAYER MUST INCLUDE

19 TIN.—A distribution shall not be treat20 ed as a qualified birth or adoption dis21 tribution with respect to any child or 

22 eligible child unless the taxpayer in23 cludes the name, age, and TIN of such 

24 child or eligible child on the taxpayer’s 

25 return of tax for the taxable year. 
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1 ‘‘(IV) DISTRIBUTIONS TREATED

2 AS MEETING PLAN DISTRIBUTION RE3 QUIREMENTS.—Any qualified birth or 

4 adoption distribution shall be treated 

5 as meeting the requirements of sections 

6 401(k)(2)(B)(i), 403(b)(7)(A)(ii), 

7 403(b)(11), and 457(d)(1)(A).’’. 

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

9 section shall apply to distributions made after December 31, 

10 2018. 

11 TITLE III—REPEAL OR DELAY OF 

12 CERTAIN HEALTH-RELATED 

13 TAXES 

14 SEC. 301. EXTENSION OF MORATORIUM ON MEDICAL DE15 VICE EXCISE TAX. 

16 Section 4191(c) of the Internal Revenue Code of 1986 

17 is amended by striking ‘‘December 31, 2019’’ and inserting 

18 ‘‘December 31, 2024’’. 

19 SEC. 302. DELAY IN IMPLEMENTATION OF EXCISE TAX ON 

20 HIGH COST EMPLOYER-SPONSORED HEALTH 

21 COVERAGE. 

22 Section 9001(c) of the Patient Protection and Afford23 able Care Act is amended by striking ‘‘December 31, 2021’’ 

24 and inserting ‘‘December 31, 2022’’. 
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1 SEC. 303. EXTENSION OF SUSPENSION OF ANNUAL FEE ON 

2 HEALTH INSURANCE PROVIDERS. 

3 Section 9010(j)(3) of the Patient Protection and Af4 fordable Care Act is amended by striking ‘‘December 31, 

5 2019’’ and inserting ‘‘December 31, 2021’’. 

6 SEC. 304. REPEAL OF EXCISE TAX ON INDOOR TANNING 

7 SERVICES. 

8 (a) IN GENERAL.—Subtitle D of the Internal Revenue 

9 Code of 1986 is amended by striking chapter 49 and by 

10 striking the item relating to such chapter in the table of 

11 chapters of such subtitle. 

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

13 section shall apply to services performed in calendar quar14 ters beginning more than 30 days after the date of the enact15 ment of this Act. 

16 TITLE IV—CERTAIN EXPIRING 

17 PROVISIONS 

18 SEC. 401. RAILROAD TRACK MAINTENANCE CREDIT MADE 

19 PERMANENT. 

20 (a) CREDIT PERCENTAGE REDUCED.—Section 45G(a) 

21 is amended by striking ‘‘50 percent’’ and inserting ‘‘30 per22 cent’’. 

23 (b) MADE PERMANENT.—Section 45G is amended by 

24 striking subsection (f). 
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1 (c) EFFECTIVE DATE.—The amendments made by this 

2 section shall apply to expenditures paid or incurred during 

3 taxable years beginning after December 31, 2017. 

4 SEC. 402. BIODIESEL AND RENEWABLE DIESEL PROVISIONS 

5 EXTENDED AND PHASED OUT. 

6 (a) INCOME TAX CREDIT.— 

7 (1) IN GENERAL.—Section 40A(g) is amended to 

8 read as follows: 

9 ‘‘(g) PHASE OUT; TERMINATION.— 

10 ‘‘(1) PHASE OUT.—In the case of any sale or use 

11 after December 31, 2021, subsections (b)(1)(A) and 

12 (b)(2)(A) shall be applied by substituting for 

13 ‘$1.00’— 

14 ‘‘(A) ‘$.75’, if such sale or use is before Jan15 uary 1, 2023, 

16 ‘‘(B) ‘$.50’, if such sale or use is after De17 cember 31, 2022, and before January 1, 2024, 

18 and 

19 ‘‘(C) ‘$.33’, if such sale or use is after De20 cember 31, 2023, and before January 1, 2025. 

21 ‘‘(2) TERMINATION.—This section shall not 

22 apply to any sale or use after December 31, 2024.’’. 

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

24 this subsection shall apply to fuel sold or used after 

25 December 31, 2017. 
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1 (b) EXCISE TAX INCENTIVES.— 

2 (1) PHASE OUT.—Section 6426(c)(2) is amended 

3 to read as follows: 

4 ‘‘(2) APPLICABLE AMOUNT.—For purposes of this 

5 subsection, the applicable amount is— 

6 ‘‘(A) $1.00 in the case of any sale or use for 

7 any period before January 1, 2022, 

8 ‘‘(B) $.75 in the case of any sale or use for 

9 any period after December 31, 2021, and before 

10 January 1, 2023, 

11 ‘‘(C) $.50 in the case of any sale or use for 

12 any period after December 31, 2022, and before 

13 January 1, 2024, and 

14 ‘‘(D) $.33 in the case of any sale or use for 

15 any period after December 31, 2023, and before 

16 January 1, 2025.’’. 

17 (2) TERMINATION.— 

18 (A) IN GENERAL.—Section 6426(c)(6) is 

19 amended by striking ‘‘December 31, 2017’’ and 

20 inserting ‘‘December 31, 2024’’. 

21 (B) PAYMENTS.—Section 6427(e)(6)(B) is 

22 amended by striking ‘‘December 31, 2017’’ and 

23 inserting ‘‘December 31, 2024’’. 
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1 (3) EFFECTIVE DATE.—The amendments made 

2 by this subsection shall apply to fuel sold or used 

3 after December 31, 2017. 

4 (4) SPECIAL RULE FOR 2018.—Notwithstanding 

5 any other provision of law, in the case of any bio6 diesel mixture credit properly determined under sec7 tion 6426(c) of the Internal Revenue Code of 1986 for 

8 the period beginning on January 1, 2018, and ending 

9 on December 31, 2018, such credit shall be allowed, 

10 and any refund or payment attributable to such cred11 it (including any payment under section 6427(e) of 

12 such Code) shall be made, only in such manner as the 

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

14 shall provide. Such Secretary shall issue guidance 

15 within 30 days after the date of the enactment of this 

16 Act providing for a one-time submission of claims 

17 covering periods described in the preceding sentence. 

18 Such guidance shall provide for a 180-day period for 

19 the submission of such claims (in such manner as 

20 prescribed by such Secretary) to begin not later than 

21 30 days after such guidance is issued. Such claims 

22 shall be paid by such Secretary not later than 60 

23 days after receipt. If such Secretary has not paid 

24 pursuant to a claim filed under this subsection within 

25 60 days after the date of the filing of such claim, the 
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1 claim shall be paid with interest from such date de2 termined by using the overpayment rate and method 

3 under section 6621 of such Code. 

4 TITLE V—OTHER PROVISIONS 

5 SEC. 501. TECHNICAL AMENDMENTS RELATING TO PUBLIC 

6 LAW 115–97. 

7 (a) AMENDMENT RELATING TO SECTION 11011.—Sec8 tion 852(b) is amended by adding at the end the following: 

9 ‘‘(10) TREATMENT BY SHAREHOLDERS OF QUALI10 FIED REIT DIVIDENDS AND QUALIFIED PUBLICLY

11 TRADED PARTNERSHIP INCOME.— 

12 ‘‘(A) IN GENERAL.—A shareholder of a reg13 ulated investment company shall take into ac14 count for purposes of section 199A(b)(1)(B)— 

15 ‘‘(i) as a qualified REIT dividend the 

16 amount which is reported by the company 

17 (in written statements furnished to its 

18 shareholders) as being attributable to quali19 fied REIT dividends received by the com20 pany, and 

21 ‘‘(ii) as qualified publicly traded part22 nership income the amount which is re23 ported by the company (in written state24 ments furnished to its shareholders) as being 
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1 attributable to qualified publicly traded 

2 partnership income of the company. 

3 ‘‘(B) EXCESS REPORTED AMOUNTS.—Rules 

4 similar to the rules of clauses (ii) and (iii) of 

5 paragraph (5)(A) shall apply for purposes of this 

6 paragraph. 

7 ‘‘(C) NEGATIVE QUALIFIED PUBLICLY TRAD8 ED PARTNERSHIP INCOME REQUIRED TO BE

9 TAKEN INTO ACCOUNT.—If the qualified publicly 

10 traded partnership income of the company is less 

11 than zero, such income shall be reported by the 

12 company under subparagraph (A)(ii). 

13 ‘‘(D) REGULATIONS.—The Secretary shall 

14 issue such regulations or other guidance as may 

15 be necessary or appropriate to carry out the pur16 poses of this paragraph.’’. 

17 (b) AMENDMENTS RELATING TO SECTION 13204.— 

18 (1) Section 168(e)(3)(E) is amended by striking 

19 ‘‘and’’ at the end of clause (v), by striking the period 

20 at the end of clause (vi) and inserting ‘‘, and’’, and 

21 by adding at the end the following new clause: 

22 ‘‘(vii) any qualified improvement 

23 property.’’. 

24 (2) The table contained in subparagraph (B) of 

25 section 168(g)(3) is amended— 
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1 (A) by striking the item relating to sub2 paragraph (D)(v), and 

3 (B) by inserting after the item relating to 

4 subparagraph (E)(vi) the following new item: 

‘‘(E)(vii) ............................................ 20’’. 

5 (c) AMENDMENT RELATING TO SECTION 13302.—Sec6 tion 13302(e)(2) of Public Law 115-97 is amended by strik7 ing ‘‘ending’’ and inserting ‘‘beginning’’. 

8 (d) AMENDMENT RELATING TO SECTION 13307.—Sec9 tion 162(q)(2) is amended by inserting ‘‘in the case of the 

10 taxpayer for whom a deduction is disallowed by reason of 

11 paragraph (1),’’ before ‘‘attorney’s fees’’. 

12 (e) AMENDMENT RELATING TO SECTION 14103.— 

13 (1) IN GENERAL.—Section 965(h) is amended by 

14 adding at the end the following new paragraph: 

15 ‘‘(7) INSTALLMENTS NOT TO PREVENT CREDIT OR

16 REFUND OF OVERPAYMENTS OR INCREASE ESTIMATED

17 TAXES.—If an election is made under paragraph (1) 

18 to pay the net tax liability under this section in in19 stallments— 

20 ‘‘(A) no installment of such net tax liability 

21 shall— 

22 ‘‘(i) in the case of a request for credit 

23 or refund, be taken into account as a liabil24 ity for purposes of determining whether an 

25 overpayment exists for purposes of section 
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1 6402 before the date on which such install2 ment is due, or 

3 ‘‘(ii) for purposes of sections 6425, 

4 6654, and 6655, be treated as a tax imposed 

5 by section 1, section 11, or subchapter L of 

6 chapter 1, and 

7 ‘‘(B) the first sentence of section 6403 shall 

8 not apply with respect to any such installment.’’. 

9 (2) LIMITATION ON PAYMENT OF INTEREST.—In 

10 the case of the portion of any overpayment which ex11 ists by reason of the application of section 965(h)(7) 

12 of the Internal Revenue Code of 1986 (as added by 

13 this subsection)— 

14 (A) if credit or refund of such portion is 

15 made on or before the date which is 45 days after 

16 the date of the enactment of this Act, no interest 

17 shall be allowed or paid under section 6611 of 

18 such Code with respect to such portion, and 

19 (B) if credit or refund of such portion is 

20 made after the date which is 45 days after the 

21 date of the enactment of this Act, no interest 

22 shall be allowed or paid under section 6611 of 

23 such Code with respect to such portion for any 

24 period before the date of the enactment of this 

25 Act. 
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1 (f) AMENDMENTS RELATING TO SECTION 14213.— 

2 (1) Section 958(b) is amended— 

3 (A) by inserting after paragraph (3) the fol4 lowing: 

5 ‘‘(4) Subparagraphs (A), (B), and (C) of section 

6 318(a)(3) shall not be applied so as to consider a 

7 United States person as owning stock which is owned 

8 by a person who is not a United States person.’’, and 

9 (B) by striking ‘‘Paragraph (1)’’ in the last 

10 sentence and inserting ‘‘Paragraphs (1) and 

11 (4)’’. 

12 (2) Subpart F of part III of subchapter N of 

13 chapter 1 is amended by inserting after section 951A 

14 the following new section: 

15 ‘‘SEC. 951B. AMOUNTS INCLUDED IN GROSS INCOME OF 

16 FOREIGN CONTROLLED UNITED STATES 

17 SHAREHOLDERS. 

18 ‘‘(a) IN GENERAL.—In the case of any foreign con19 trolled United States shareholder of a foreign controlled for20 eign corporation— 

21 ‘‘(1) this subpart (other than sections 951A, 

22 951(b), 957, and 965) shall be applied with respect to 

23 such shareholder (separately from, and in addition to, 

24 the application of this subpart without regard to this 

25 section)— 
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1 ‘‘(A) by substituting ‘foreign controlled 

2 United States shareholder’ for ‘United States 

3 shareholder’ each place it appears therein, and 

4 ‘‘(B) by substituting ‘foreign controlled for5 eign corporation’ for ‘controlled foreign corpora6 tion’ each place it appears therein, and 

7 ‘‘(2) sections 951A and 965 shall be applied with 

8 respect to such shareholder — 

9 ‘‘(A) by treating each reference to ‘United 

10 States shareholder’ in such sections as including 

11 a reference to such shareholder, and 

12 ‘‘(B) by treating each reference to ‘con13 trolled foreign corporation’ in such sections as 

14 including a reference to such foreign controlled 

15 foreign corporation. 

16 ‘‘(b) FOREIGN CONTROLLED UNITED STATES SHARE17 HOLDER.—For purposes of this section, the term ‘foreign 

18 controlled United States shareholder’ means, with respect 

19 to any foreign corporation, any United States person which 

20 would be a United States shareholder with respect to such 

21 foreign corporation if— 

22 ‘‘(1) section 951(b) were applied by substituting 

23 ‘more than 50 percent’ for ‘10 percent or more’, and 

24 ‘‘(2) section 958(b) were applied without regard 

25 to paragraph (4) thereof. 
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1 ‘‘(c) FOREIGN CONTROLLED FOREIGN CORPORA2 TION.—For purposes of this section, the term ‘foreign con3 trolled foreign corporation’ means a foreign corporation, 

4 other than a controlled foreign corporation, which would 

5 be a controlled foreign corporation if section 957(a) were 

6 applied— 

7 ‘‘(1) by substituting ‘foreign controlled United 

8 States shareholders’ for ‘United States shareholders’, 

9 and 

10 ‘‘(2) by substituting ‘section 958(b) (other than 

11 paragraph (4) thereof)’ for ‘section 958(b)’. 

12 ‘‘(d) REGULATIONS.—The Secretary shall prescribe 

13 such regulations or other guidance as may be necessary or 

14 appropriate to carry out the purposes of this section, in15 cluding regulations or other guidance— 

16 ‘‘(1) to treat a foreign controlled United States 

17 shareholder or a foreign controlled foreign corporation 

18 as a United States shareholder or as a controlled for19 eign corporation, respectively, for purposes of provi20 sions of this title other than this subpart, and 

21 ‘‘(2) to prevent the avoidance of the purposes of 

22 this section.’’. 

23 (3) The amendments made by paragraphs (1) 

24 and (2) shall apply to— 
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1 (A) the last taxable year of foreign corpora2 tions beginning before January 1, 2018, and 

3 each subsequent taxable year of such foreign cor4 porations, and 

5 (B) taxable years of United States persons 

6 in which or with which such taxable years of for7 eign corporations end. 

8 (g) EFFECTIVE DATES.—Except as otherwise provided 

9 in this section, the amendments made by this section shall 

10 take effect as if included in the provision of Public Law 

11 115-97 to which they relate. 

12 SEC. 502. CLARIFICATION OF TREATMENT OF VETERANS AS 

13 SPECIFIED GROUP FOR PURPOSES OF THE 

14 LOW-INCOME HOUSING TAX CREDIT. 

15 For purposes of section 42(g)(9)(B) of the Internal 

16 Revenue Code of 1986, veterans shall not fail to be treated 

17 as a specified group under a Federal program. 

18 SEC. 503. CLARIFICATION OF GENERAL PUBLIC USE RE19 QUIREMENT FOR QUALIFIED RESIDENTIAL 

20 RENTAL PROJECTS. 

21 (a) IN GENERAL.—Section 142(d)(2) is amended by 

22 adding at the end the following new subparagraph: 

23 ‘‘(F) CLARIFICATION OF GENERAL PUBLIC USE

24 REQUIREMENT.—Rules similar to the rules of section 

25 42(g)(9) shall apply for purposes of this subsection.’’. 
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1 (b) EFFECTIVE DATE.—The amendment made by this 

2 section shall apply to bonds issued before, on, or after the 

3 date of enactment of this Act. 

4 SEC. 504. FLOOR PLAN FINANCING APPLICABLE TO CER5 TAIN TRAILERS AND CAMPERS. 

6 (a) IN GENERAL.—Section 163(j)(9)(C) is amended by 

7 adding at the end the following new flush sentence: 

8 ‘‘Such term shall include any trailer or camper 

9 which is designed to provide temporary living 

10 quarters for recreational, camping, travel, or sea11 sonal use and is designed to be towed by, or af12 fixed to, a motor vehicle.’’. 

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

14 section shall apply to taxable years beginning after Decem15 ber 31, 2017. 

16 SEC. 505. REPEAL OF INCREASE IN UNRELATED BUSINESS 

17 TAXABLE INCOME BY DISALLOWED FRINGE. 

18 (a) IN GENERAL.—Section 512(a) is amended by strik19 ing paragraph (7). 

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

21 section shall take effect as if included in section 13703 of 

22 Public Law 115-97. 
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1 SEC. 506. CERTAIN PURCHASES OF EMPLOYEE-OWNED 

2 STOCK DISREGARDED FOR PURPOSES OF 

3 FOUNDATION TAX ON EXCESS BUSINESS 

4 HOLDINGS. 

5 (a) IN GENERAL.—Section 4943(c)(4)(A) is amended 

6 by adding at the end the following new clause: 

7 ‘‘(v) CERTAIN PURCHASES OF EM8 PLOYEE-OWNED STOCK DISREGARDED.—For 

9 purposes of clause (i), subparagraph (D), 

10 and paragraph (2), any voting stock 

11 which— 

12 ‘‘(I) is not readily tradable on an 

13 established securities market, 

14 ‘‘(II) is purchased by the business 

15 enterprise on or after January 1, 2005, 

16 from a stock bonus or profit sharing 

17 plan described in section 401(a) in 

18 which employees of such business enter19 prise participate, in connection with a 

20 distribution from such plan, and 

21 ‘‘(III) is held by the business en22 terprise as treasury stock, cancelled, or 

23 retired, 

24 shall be treated as outstanding voting stock, 

25 but only to the extent so treating such stock 

26 would not result in permitted holdings ex-
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1 ceeding 49 percent (determined without re2 gard to this clause). The preceding sentence 

3 shall not apply with respect to the purchase 

4 of stock from a plan during the 10-year pe5 riod beginning on the date the plan is estab6 lished.’’ 

7 (b) EFFECTIVE DATE.— 

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

9 this section shall apply to taxable years ending after 

10 the date of enactment of this Act and to purchases by 

11 a business enterprise of voting stock in taxable years 

12 beginning before, on, or after the date of enactment of 

13 this Act. 

14 (2) SPECIAL RULE FOR GRANDFATHERED FOUN15 DATIONS IN CASE OF DECREASE IN OWNERSHIP BY

16 REASON OF PRE-ENACTMENT PURCHASES.—Section 

17 4943(c)(4)(A)(ii) of the Internal Revenue Code of 

18 1986 shall not apply with respect to any decrease in 

19 the percentage of holdings in a business enterprise by 

20 reason of section 4943(c)(4)(A)(v) of such Code (as 

21 added by this section). 
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1 SEC. 507. ALLOWING 501(c)(3) ORGANIZATION TO MAKE 

2 STATEMENTS RELATING TO POLITICAL CAM3 PAIGN IN ORDINARY COURSE OF CARRYING 

4 OUT ITS TAX EXEMPT PURPOSE. 

5 (a) IN GENERAL.—Section 501 of the Internal Revenue 

6 Code of 1986 is amended by adding at the end the following 

7 new subsection: 

8 ‘‘(s) SPECIAL RULE RELATING TO POLITICAL CAM9 PAIGN STATEMENTS OF ORGANIZATION DESCRIBED IN SUB10 SECTION (c)(3).— 

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

12 (c)(3) and sections 170(c)(2), 2055, 2106, 2522, and 

13 4955, an organization shall not fail to be treated as 

14 organized and operated exclusively for a purpose de15 scribed in subsection (c)(3), nor shall it be deemed to 

16 have participated in, or intervened in any political 

17 campaign on behalf of (or in opposition to) any can18 didate for public office, solely because of the content 

19 of any statement which— 

20 ‘‘(A) is made in the ordinary course of the 

21 organization’s regular and customary activities 

22 in carrying out its exempt purpose, and 

23 ‘‘(B) results in the organization incurring 

24 not more than de minimis incremental ex25 penses.’’. 
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1 (b) EFFECTIVE DATE.—The amendments made by this 

2 section shall apply to taxable years ending after the date 

3 of the enactment of this Act. 

4 SEC. 508. CHARITABLE ORGANIZATIONS PERMITTED TO 

5 MAKE COLLEGIATE HOUSING AND INFRA6 STRUCTURE GRANTS. 

7 (a) IN GENERAL.—Section 501, as amended by the 

8 preceding provisions of this Act, is amended by adding at 

9 the end the following new subsection: 

10 ‘‘(t) TREATMENT OF ORGANIZATIONS MAKING COLLE11 GIATE HOUSING AND INFRASTRUCTURE IMPROVEMENT

12 GRANTS.— 

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

14 (c)(3) and sections 170(c)(2)(B), 2055(a)(2), and 

15 2522(a)(2), an organization shall not fail to be treat16 ed as organized and operated exclusively for chari17 table or educational purposes solely because such or18 ganization makes collegiate housing and infrastruc19 ture grants to an organization described in subsection 

20 (c)(7) which applies the grant to its collegiate housing 

21 property. 

22 ‘‘(2) HOUSING AND INFRASTRUCTURE GRANTS.— 

23 For purposes of paragraph (1), collegiate housing and 

24 infrastructure grants are grants to provide, improve, 

25 operate, or maintain collegiate housing property that 
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1 may involve more than incidental social, recreational, 

2 or private purposes, so long as such grants are for 

3 purposes that would be permissible for a dormitory or 

4 other residential facility of the college or university 

5 with which the collegiate housing property is associ6 ated. A grant shall not be treated as a collegiate hous7 ing and infrastructure grant for purposes of para8 graph (1) to the extent that such grant is used to pro9 vide physical fitness facilities. 

10 ‘‘(3) COLLEGIATE HOUSING PROPERTY.—For 

11 purposes of this subsection, collegiate housing prop12 erty is property in which, at the time of a grant or 

13 following the acquisition, lease, construction, or modi14 fication of such property using such grant, substan15 tially all of the residents are full-time students at the 

16 college or university in the community where such 

17 property is located. 

18 ‘‘(4) GRANTS TO CERTAIN ORGANIZATIONS HOLD19 ING TITLE TO PROPERTY, ETC.—For purposes of this 

20 subsection, a collegiate housing and infrastructure 

21 grant to an organization described in subsection 

22 (c)(2) or (c)(7) holding title to property exclusively 

23 for the benefit of an organization described in sub24 section (c)(7) shall be considered a grant to the orga-
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1 nization described in subsection (c)(7) for whose ben2 efit such property is held.’’. 

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

4 section shall apply to grants made in taxable years ending 

5 after the date of the enactment of this Act. 

6 SEC. 509. RESTRICTION ON REGULATION OF CONTINGENCY 

7 FEES WITH RESPECT TO TAX RETURNS, ETC. 

8 The Secretary of the Treasury may not regulate, pro9 hibit, or restrict the use of a contingent fee in connection 

10 with tax returns, claims for refund, or documents in connec11 tion with tax returns or claims for refund prepared on be12 half of a taxpayer. 

13 DIVISION B—TAXPAYER FIRST 

14 ACT OF 2018 

15 SECTION 1. SHORT TITLE; ETC. 

16 (a) SHORT TITLE.—This division may be cited as the 

17 ‘‘Taxpayer First Act of 2018’’. 

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

19 expressly provided, whenever in this division an amend20 ment or repeal is expressed in terms of an amendment to, 

21 or repeal of, a section or other provision, the reference shall 

22 be considered to be made to a section or other provision 

23 of the Internal Revenue Code of 1986. 

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

25 this division is as follows: 

Sec. 1. Short title; etc. 
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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. IRS Free File Program. 

Sec. 1103. 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. 

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. Report on electronic payments. 

Sec. 2006. Identity protection personal identification numbers. 

Sec. 2007. Single point of contact for tax-related identity theft victims. 

Sec. 2008. Notification of suspected identity theft. 

Sec. 2009. Guidelines for stolen identity refund fraud cases. 
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Sec. 2010. 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. Development of online accounts and portals. 

Sec. 2103. Internet platform for Form 1099 filings. 

Sec. 2104. 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. Requirement that electronically prepared paper returns include scannable code. 

Sec. 2305. 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. Electronic record retention. 

Sec. 3002. Prohibition on rehiring any employee of the Internal Revenue Service 

who was involuntarily separated from service for misconduct. 

Sec. 3003. 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—Tax Court 

Sec. 3301. Disqualification of judge or magistrate judge of the Tax Court. 

Sec. 3302. Opinions and judgments. 

Sec. 3303. Title of special trial judge changed to magistrate judge of the Tax 

Court. 

Sec. 3304. Repeal of deadwood related to Board of Tax Appeals. 
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1 TITLE I—PUTTING TAXPAYERS 

2 FIRST 

3 Subtitle A—Independent Appeals 

4 Process 

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

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

8 at the end the following new subsection: 

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

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

11 the Internal Revenue Service an office to be known as 

12 the ‘Internal Revenue Service Independent Office of 

13 Appeals’. 

14 ‘‘(2) CHIEF OF APPEALS.— 

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

16 Service Independent Office of Appeals shall be 

17 under the supervision and direction of an official 

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

19 of Appeals shall report directly to the Commis20 sioner of the Internal Revenue Service and shall 

21 be entitled to compensation at the same rate as 

22 the highest rate of basic pay established for the 

23 Senior Executive Service under section 5382 of 

24 title 5, United States Code. 
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1 ‘‘(B) APPOINTMENT.—The Chief of Appeals 

2 shall be appointed by the Commissioner of the 

3 Internal Revenue Service without regard to the 

4 provisions of title 5, United States Code, relating 

5 to appointments in the competitive service or the 

6 Senior Executive Service. 

7 ‘‘(C) QUALIFICATIONS.—An individual ap8 pointed under subparagraph (B) shall have expe9 rience and expertise in— 

10 ‘‘(i) administration of, and compliance 

11 with, Federal tax laws, 

12 ‘‘(ii) a broad range of compliance 

13 cases, and 

14 ‘‘(iii) management of large service or15 ganizations. 

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

17 shall be the function of the Internal Revenue Service 

18 Independent Office of Appeals to resolve Federal tax 

19 controversies without litigation on a basis which— 

20 ‘‘(A) is fair and impartial to both the Gov21 ernment and the taxpayer, 

22 ‘‘(B) promotes a consistent application and 

23 interpretation of, and voluntary compliance 

24 with, the Federal tax laws, and 
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1 ‘‘(C) enhances public confidence in the in2 tegrity and efficiency of the Internal Revenue 

3 Service. 

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

5 described in paragraph (3) shall be generally avail6 able to all taxpayers. 

7 ‘‘(5) LIMITATION ON DESIGNATION OF CASES AS

8 NOT ELIGIBLE FOR REFERRAL TO INDEPENDENT OF9 FICE OF APPEALS.— 

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

11 is in receipt of a notice of deficiency authorized 

12 under section 6212 requests referral to the Inter13 nal Revenue Service Independent Office of Ap14 peals and such request is denied, the Commis15 sioner of the Internal Revenue Service shall pro16 vide such taxpayer a written notice which— 

17 ‘‘(i) provides a detailed description of 

18 the facts involved, the basis for the decision 

19 to deny the request, and a detailed expla20 nation of how the basis of such decision ap21 plies to such facts, and 

22 ‘‘(ii) describes the procedures pre23 scribed under subparagraph (C) for pro24 testing the decision to deny the request. 
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1 ‘‘(B) REPORT TO CONGRESS.—The Commis2 sioner of the Internal Revenue Service shall sub3 mit a written report to Congress on an annual 

4 basis which includes the number of requests de5 scribed in subparagraph (A) which were denied 

6 and the reasons (described by category) that such 

7 requests were denied. 

8 ‘‘(C) PROCEDURES FOR PROTESTING DE9 NIAL OF REQUEST.—The Commissioner of the 

10 Internal Revenue Service shall prescribe proce11 dures for protesting to the Commissioner of the 

12 Internal Revenue Service a denial of a request 

13 described in subparagraph (A). 

14 ‘‘(D) NOT APPLICABLE TO FRIVOLOUS POSI15 TIONS.—This paragraph shall not apply to a re16 quest for referral to the Internal Revenue Service 

17 Independent Office of Appeals which is denied on 

18 the basis that the issue involved is a frivolous po19 sition (within the meaning of section 6702(c)). 

20 ‘‘(6) STAFF.— 

21 ‘‘(A) IN GENERAL.—All personnel in the In22 ternal Revenue Service Independent Office of Ap23 peals shall report to the Chief of Appeals. 

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

25 CHIEF COUNSEL.—The Chief of Appeals shall 
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1 have authority to obtain legal assistance and ad2 vice from the staff of the Office of the Chief 

3 Counsel. The Chief Counsel shall ensure that 

4 such assistance and advice is provided by staff of 

5 the Office of the Chief Counsel who were not in6 volved in the case with respect to which such as7 sistance and advice is sought and who are not 

8 involved in preparing such case for litigation. 

9 ‘‘(7) ACCESS TO CASE FILES.— 

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

11 conference with the Internal Revenue Service 

12 Independent Office of Appeals has been scheduled 

13 upon request of a specified taxpayer, the Chief of 

14 Appeals shall ensure that such taxpayer is pro15 vided access to the nonprivileged portions of the 

16 case file on record regarding the disputed issues 

17 (other than documents provided by the taxpayer 

18 to the Internal Revenue Service) not later than 

19 10 days before the date of such conference. 

20 ‘‘(B) TAXPAYER ELECTION TO EXPEDITE

21 CONFERENCE.—If the taxpayer so elects, sub22 paragraph (A) shall be applied by substituting 

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

24 the date of such conference’. 
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1 ‘‘(C) SPECIFIED TAXPAYER.—For purposes 

2 of this paragraph— 

3 ‘‘(i) IN GENERAL.—The term ‘specified 

4 taxpayer’ means— 

5 ‘‘(I) in the case of any taxpayer 

6 who is a natural person, a taxpayer 

7 whose adjusted gross income does not 

8 exceed $400,000 for the taxable year to 

9 which the dispute relates, and 

10 ‘‘(II) in the case of any other tax11 payer, a taxpayer whose gross receipts 

12 do not exceed $5,000,000 for the tax13 able year to which the dispute relates. 

14 ‘‘(ii) AGGREGATION RULE.—Rules 

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

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

17 (b) CONFORMING AMENDMENTS.— 

18 (1) The following provisions are each amended 

19 by striking ‘‘Internal Revenue Service Office of Ap20 peals’’ and inserting ‘‘Internal Revenue Service Inde21 pendent Office of Appeals’’: 

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

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

24 (C) Subsections (b)(1) and (d)(3) of section 

25 6330. 
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1 (D) Section 6603(d)(3)(B). 

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

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

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

5 (c)(1) of section 7123. 

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

7 of section 7430. 

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

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

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

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

12 place it appears and inserting ‘‘Internal Revenue 

13 Service Independent Office of Appeals’’. 

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

15 by inserting ‘‘INDEPENDENT’’ after ‘‘IRS’’. 

16 (c) OTHER REFERENCES.—Any reference in any pro17 vision of law, or regulation or other guidance, to the Inter18 nal Revenue Service Office of Appeals shall be treated as 

19 a reference to the Internal Revenue Service Independent Of20 fice of Appeals. 

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

22 of paragraphs (2) through (6) of section 1001(b) of the In23 ternal Revenue Service Restructuring and Reform Act of 

24 1998 shall apply for purposes of this section (and the 

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

2 (1) IN GENERAL.—Except as otherwise provided 

3 in this subsection, the amendments made by this sec4 tion shall take effect on the date of the enactment of 

5 this Act. 

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

7 of the Internal Revenue Code of 1986, as added by 

8 subsection (a), shall apply to conferences occurring 

9 after the date which is 1 year after the date of the en10 actment of this Act. 

11 Subtitle B—Improved Service 

12 SEC. 1101. COMPREHENSIVE CUSTOMER SERVICE STRAT13 EGY. 

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

15 1 year after the date of the enactment of this Act, the Sec16 retary of the Treasury shall submit to Congress a written 

17 comprehensive customer service strategy for the Internal 

18 Revenue Service. Such strategy shall include— 

19 (1) a plan to provide assistance to taxpayers 

20 that is secure, designed to meet reasonable taxpayer 

21 expectations, and adopts appropriate best practices of 

22 customer service provided in the private sector, in23 cluding online services, telephone call back services, 

24 and training of employees providing customer serv25 ices, 
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1 (2) a thorough assessment of the services that the 

2 Internal Revenue Service can co-locate with other 

3 Federal services or offer as self-service options, 

4 (3) proposals to improve Internal Revenue Serv5 ice customer service in the short term (the current 

6 and following fiscal year), medium term (approxi7 mately 3 to 5 fiscal years), and long term (approxi8 mately 10 fiscal years), 

9 (4) a plan to update guidance and training ma10 terials for customer service employees of the Internal 

11 Revenue Service, including the Internal Revenue 

12 Manual, to reflect such strategy, and 

13 (5) identified metrics and benchmarks for quan14 titatively measuring the progress of the Internal Rev15 enue Service in implementing such strategy. 

16 (b) UPDATED GUIDANCE AND TRAINING MATE17 RIALS.—Not later than 2 years after the date of the enact18 ment of this Act, the Secretary of the Treasury (or the Sec19 retary’s delegate) shall make available the updated guidance 

20 and training materials described in subsection (a)(4) (in21 cluding the Internal Revenue Manual). Such updated guid22 ance and training materials (including the Internal Rev23 enue Manual) shall be written in a manner so as to be eas24 ily understood by customer service employees of the Internal 

25 Revenue Service and shall provide clear instructions. 
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1 SEC. 1102. IRS FREE FILE PROGRAM. 

2 (a) IN GENERAL.— 

3 (1) The Secretary of the Treasury, or the Sec4 retary’s delegate, shall continue to operate the IRS 

5 Free File Program as established by the Internal Rev6 enue Service and published in the Federal Register on 

7 November 4, 2002 (67 Fed. Reg. 67247), including 

8 any subsequent agreements and governing rules estab9 lished pursuant thereto. 

10 (2) The IRS Free File Program shall continue to 

11 provide free commercial-type online individual in12 come tax preparation and electronic filing services to 

13 the lowest 70 percent of taxpayers by adjusted gross 

14 income. The number of taxpayers eligible to receive 

15 such services each year shall be calculated by the In16 ternal Revenue Service annually based on prior year 

17 aggregate taxpayer adjusted gross income data. 

18 (3) In addition to the services described in para19 graph (2), and in the same manner, the IRS Free 

20 File Program shall continue to make available to all 

21 taxpayers (without regard to income) a basic, online 

22 electronic fillable forms utility. 

23 (4) The IRS Free File Program shall continue to 

24 work cooperatively with the private sector to provide 

25 the free individual income tax preparation and the 
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1 electronic filing services described in paragraphs (2) 

2 and (3). 

3 (5) The IRS Free File Program shall work coop4 eratively with State government agencies to enhance 

5 and expand the use of the program to provide needed 

6 benefits to the taxpayer while reducing the cost of 

7 processing returns. 

8 (b) INNOVATIONS.—The Secretary of the Treasury, or 

9 the Secretary’s delegate, shall work with the private sector 

10 through the IRS Free File Program to identify and imple11 ment, consistent with applicable law, innovative new pro12 gram features to improve and simplify the taxpayer’s expe13 rience with completing and filing individual income tax re14 turns through voluntary compliance. 

15 SEC. 1103. LOW-INCOME EXCEPTION FOR PAYMENTS OTH16 ERWISE REQUIRED IN CONNECTION WITH A 

17 SUBMISSION OF AN OFFER-IN-COMPROMISE. 

18 (a) IN GENERAL.—Section 7122(c) is amended by add19 ing at the end the following new paragraph: 

20 ‘‘(3) EXCEPTION FOR LOW-INCOME TAX21 PAYERS.—Paragraph (1), and any user fee otherwise 

22 required in connection with the submission of an 

23 offer-in-compromise, shall not apply to any offer-in24 compromise with respect to a taxpayer who is an in25 dividual with adjusted gross income, as determined 
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1 for the most recent taxable year for which such infor2 mation is available, which does not exceed 250 per3 cent of the applicable poverty level (as determined by 

4 the Secretary).’’. 

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

6 section shall apply to offers-in-compromise submitted after 

7 the date of the enactment of this Act. 

8 Subtitle C—Sensible Enforcement 

9 SEC. 1201. INTERNAL REVENUE SERVICE SEIZURE RE10 QUIREMENTS WITH RESPECT TO STRUC11 TURING TRANSACTIONS. 

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

13 amended— 

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

15 following: 

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

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

18 ‘‘(B) INTERNAL REVENUE SERVICE SEIZURE

19 REQUIREMENTS WITH RESPECT TO STRUCTURING

20 TRANSACTIONS.— 

21 ‘‘(i) PROPERTY DERIVED FROM AN IL22 LEGAL SOURCE.—Property may only be 

23 seized by the Internal Revenue Service pur24 suant to subparagraph (A) by reason of a 

25 claimed violation of section 5324 if the 
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1 property to be seized was derived from an 

2 illegal source or the funds were structured 

3 for the purpose of concealing the violation of 

4 a criminal law or regulation other than sec5 tion 5324. 

6 ‘‘(ii) NOTICE.—Not later than 30 days 

7 after property is seized by the Internal Rev8 enue Service pursuant to subparagraph (A), 

9 the Internal Revenue Service shall— 

10 ‘‘(I) make a good faith effort to 

11 find all persons with an ownership in12 terest in such property; and 

13 ‘‘(II) provide each such person so 

14 found with a notice of the seizure and 

15 of the person’s rights under clause (iv). 

16 ‘‘(iii) EXTENSION OF NOTICE UNDER

17 CERTAIN CIRCUMSTANCES.—The Internal 

18 Revenue Service may apply to a court of 

19 competent jurisdiction for one 30-day exten20 sion of the notice requirement under clause 

21 (ii) if the Internal Revenue Service can es22 tablish probable cause of an imminent 

23 threat to national security or personal safe24 ty necessitating such extension. 
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1 ‘‘(iv) POST-SEIZURE HEARING.—If a 

2 person with an ownership interest in prop3 erty seized pursuant to subparagraph (A) 

4 by the Internal Revenue Service requests a 

5 hearing by a court of competent jurisdiction 

6 within 30 days after the date on which no7 tice is provided under subclause (ii), such 

8 property shall be returned unless the court 

9 holds an adversarial hearing and finds 

10 within 30 days of such request (or such 

11 longer period as the court may provide, but 

12 only on request of an interested party) that 

13 there is probable cause to believe that there 

14 is a violation of section 5324 involving such 

15 property and probable cause to believe that 

16 the property to be seized was derived from 

17 an illegal source or the funds were struc18 tured for the purpose of concealing the vio19 lation of a criminal law or regulation other 

20 than section 5324.’’. 
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1 SEC. 1202. EXCLUSION OF INTEREST RECEIVED IN ACTION 

2 TO RECOVER PROPERTY SEIZED BY THE IN3 TERNAL REVENUE SERVICE BASED ON 

4 STRUCTURING TRANSACTION. 

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

6 1 is amended by inserting before section 140 the following 

7 new section: 

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

9 PROPERTY SEIZED BY THE INTERNAL REV10 ENUE SERVICE BASED ON STRUCTURING 

11 TRANSACTION. 

12 ‘‘Gross income shall not include any interest received 

13 from the Federal Government in connection with an action 

14 to recover property seized by the Internal Revenue Service 

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

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

17 such title.’’. 

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

19 part III of subchapter B of chapter 1 is amended by insert20 ing before the item relating to section 140 the following new 

21 item: 

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

Revenue Service based on structuring transaction.’’. 

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

23 section shall apply to interest received on or after the date 

24 of the enactment of this Act. 
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1 SEC. 1203. CLARIFICATION OF EQUITABLE RELIEF FROM 

2 JOINT LIABILITY. 

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

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

5 following new paragraph: 

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

7 review of a determination made under this section 

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

9 be based upon— 

10 ‘‘(A) the administrative record established 

11 at the time of the determination, and 

12 ‘‘(B) any additional newly discovered or 

13 previously unavailable evidence.’’, and 

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

15 ‘‘(f) EQUITABLE RELIEF.— 

16 ‘‘(1) IN GENERAL.—Under procedures prescribed 

17 by the Secretary, if— 

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

19 circumstances, it is inequitable to hold the indi20 vidual liable for any unpaid tax or any defi21 ciency (or any portion of either), and 

22 ‘‘(B) relief is not available to such indi23 vidual under subsection (b) or (c), 

24 the Secretary may relieve such individual of such li25 ability. 
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1 ‘‘(2) LIMITATION.—A request for equitable relief 

2 under this subsection may be made with respect to 

3 any portion of any liability that— 

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

5 request is made before the expiration of the ap6 plicable period of limitation under section 6502, 

7 or 

8 ‘‘(B) has been paid, provided that such re9 quest is made during the period in which the in10 dividual could submit a timely claim for refund 

11 or credit of such payment.’’. 

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

13 section shall apply to petitions or requests filed or pending 

14 on or after the date of the enactment of this Act. 

15 SEC. 1204. MODIFICATION OF PROCEDURES FOR ISSUANCE 

16 OF THIRD-PARTY SUMMONS. 

17 (a) IN GENERAL.—Section 7609(f) is amended by add18 ing at the end the following flush sentence: 

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

20 the preceding sentence unless the information sought to be 

21 obtained is narrowly tailored to information that pertains 

22 to the failure (or potential failure) of the person or group 

23 or class of persons referred to in paragraph (2) to comply 

24 with one or more provisions of the internal revenue law 
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1 which have been identified for purposes of such para2 graph.’’. 

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

4 section shall apply to summonses served after the date of 

5 the enactment of this Act. 

6 SEC. 1205. PRIVATE DEBT COLLECTION AND SPECIAL COM7 PLIANCE PERSONNEL PROGRAM. 

8 (a) CERTAIN TAX RECEIVABLES NOT ELIGIBLE FOR

9 COLLECTION UNDER TAX COLLECTION CONTRACTS.—Sec10 tion 6306(d)(3) is amended by striking ‘‘or’’ at the end of 

11 subparagraph (C) and by inserting after subparagraph (D) 

12 the following new subparagraphs: 

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

14 income consists of disability insurance benefits 

15 under section 223 of the Social Security Act or 

16 supplemental security income benefits under title 

17 XVI of the Social Security Act (including sup18 plemental security income benefits of the type de19 scribed in section 1616 of such Act or section 212 

20 of Public Law 93-66), or 

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

22 adjusted gross income, as determined for the 

23 most recent taxable year for which such informa24 tion is available, which does not exceed 200 per-
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1 cent of the applicable poverty level (as deter2 mined by the Secretary).’’. 

3 (b) DETERMINATION OF INACTIVE TAX RECEIVABLES

4 ELIGIBLE FOR COLLECTION UNDER TAX COLLECTION CON5 TRACTS.—Section 6306(c)(2)(A)(ii) is amended by striking 

‘‘more than 1 6 ⁄3 of the period of the applicable statute of limi7 tation has lapsed’’ and inserting ‘‘more than 2 years has 

8 passed since assessment’’. 

9 (c) MAXIMUM LENGTH OF INSTALLMENT AGREEMENTS

10 OFFERED UNDER TAX COLLECTION CONTRACTS.—Section 

11 6306(b)(1)(B) is amended by striking ‘‘5 years’’ and insert12 ing ‘‘7 years’’. 

13 (d) CLARIFICATION THAT SPECIAL COMPLIANCE PER14 SONNEL PROGRAM ACCOUNT MAY BE USED FOR PROGRAM

15 COSTS.— 

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

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

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

19 period, and 

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

21 follows ‘‘out of such account’’ and inserting ‘‘for 

22 other than program costs’’. 

23 (2) COMMUNICATIONS, SOFTWARE, AND TECH24 NOLOGY COSTS TREATED AS PROGRAM COSTS.—Sec25 tion 6307(d)(2)(B) is amended by striking ‘‘tele-
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1 communications’’ and inserting ‘‘communications, 

2 software, technology’’. 

3 (3) CONFORMING AMENDMENT.—Section 

4 6307(d)(2) is amended by striking ‘‘and’’ at the end 

5 of subparagraph (A), by striking the period at the end 

6 of subparagraph (B) and inserting ‘‘, and’’, and by 

7 inserting after subparagraph (B) the following new 

8 subparagraph: 

9 ‘‘(C) reimbursement of the Internal Revenue 

10 Service or other government agencies for the cost 

11 of administering the qualified tax collection pro12 gram under section 6306.’’. 

13 (e) EFFECTIVE DATES.— 

14 (1) IN GENERAL.—Except as otherwise provided 

15 in this subsection, the amendments made by this sec16 tion shall apply to tax receivables identified by the 

17 Secretary (or the Secretary’s delegate) after December 

18 31, 2019. 

19 (2) MAXIMUM LENGTH OF INSTALLMENT AGREE20 MENTS.—The amendment made by subsection (c) 

21 shall apply to contracts entered into after the date of 

22 the enactment of this Act. 

23 (3) USE OF SPECIAL COMPLIANCE PERSONNEL

24 PROGRAM ACCOUNT.—The amendment made by sub25 section (d) shall apply to amounts expended from the 
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1 special compliance personnel program account after 

2 the date of the enactment of this Act. 

3 SEC. 1206. REFORM OF NOTICE OF CONTACT OF THIRD PAR4 TIES. 

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

6 read as follows: 

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

8 of the Internal Revenue Service may not contact any 

9 person other than the taxpayer with respect to the de10 termination or collection of the tax liability of such 

11 taxpayer unless such contact occurs during a period 

12 (not greater than 1 year) which is specified in a no13 tice which— 

14 ‘‘(A) informs the taxpayer that contacts 

15 with persons other than the taxpayer are in16 tended to be made during such period, and 

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

18 Secretary, is provided to the taxpayer not later 

19 than 45 days before the beginning of such period. 

20 Nothing in the preceding sentence shall prevent the 

21 issuance of notices to the same taxpayer with respect 

22 to the same tax liability with periods specified therein 

23 that, in the aggregate, exceed 1 year. A notice shall 

24 not be issued under this paragraph unless there is an 

25 intent at the time such notice is issued to contact per-
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1 sons other than the taxpayer during the period speci2 fied in such notice. The preceding sentence shall not 

3 prevent the issuance of a notice if the requirement of 

4 such sentence is met on the basis of the assumption 

5 that the information sought to be obtained by such 

6 contact will not be obtained by other means before 

7 such contact.’’. 

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

9 section shall apply to notices provided, and contacts of per10 sons made, after the date which is 45 days after the date 

11 of the enactment of this Act. 

12 SEC. 1207. MODIFICATION OF AUTHORITY TO ISSUE DES13 IGNATED SUMMONS. 

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

15 amended by striking ‘‘coordinated examination program’’ 

16 and inserting ‘‘coordinated industry case program’’. 

17 (b) REQUIREMENTS FOR SUMMONS.—Clause (i) of sec18 tion 6503(j)(2)(A) is amended to read as follows: 

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

20 preceded by a review and written approval 

21 of such issuance by the Commissioner of the 

22 relevant operating division of the Internal 

23 Revenue Service and the Chief Counsel 

24 which— 
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1 ‘‘(I) states facts clearly estab2 lishing that the Secretary has made 

3 reasonable requests for the information 

4 that is the subject of the summons, and 

5 ‘‘(II) is attached to such sum6 mons,’’. 

7 (c) ESTABLISHMENT THAT REASONABLE REQUESTS

8 FOR INFORMATION WERE MADE.—Subsection (j) of section 

9 6503 is amended by adding at the end the following new 

10 paragraph: 

11 ‘‘(4) ESTABLISHMENT THAT REASONABLE RE12 QUESTS FOR INFORMATION WERE MADE.—In any 

13 court proceeding described in paragraph (3), the Sec14 retary shall establish that reasonable requests were 

15 made for the information that is the subject of the 

16 summons.’’. 

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

18 section shall apply to summonses issued after the date of 

19 the enactment of this Act. 

20 SEC. 1208. LIMITATION ON ACCESS OF NON-INTERNAL REV21 ENUE SERVICE EMPLOYEES TO RETURNS AND 

22 RETURN INFORMATION. 

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

24 at the end the following new subsection: 
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1 ‘‘(f) LIMITATION ON ACCESS OF PERSONS OTHER

2 THAN INTERNAL REVENUE SERVICE OFFICERS AND EM3 PLOYEES.—The Secretary shall not, under the authority of 

4 section 6103(n), provide any books, papers, records, or other 

5 data obtained pursuant to this section to any person au6 thorized under section 6103(n), except when such person re7 quires such information for the sole purpose of providing 

8 expert evaluation and assistance to the Internal Revenue 

9 Service. No person other than an officer or employee of the 

10 Internal Revenue Service or the Office of Chief Counsel 

11 may, on behalf of the Secretary, question a witness under 

12 oath whose testimony was obtained pursuant to this sec13 tion.’’. 

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

15 section— 

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

17 of this Act, and 

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

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

20 of 1986 merely because such contract was in effect be21 fore the date of the enactment of this Act. 
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1 Subtitle D—Organizational 

2 Modernization 

3 SEC. 1301. OFFICE OF THE NATIONAL TAXPAYER ADVO4 CATE. 

5 (a) TAXPAYER ADVOCATE DIRECTIVES.— 

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

7 by adding at the end the following new paragraph: 

8 ‘‘(5) TAXPAYER ADVOCATE DIRECTIVES.—In the 

9 case of any Taxpayer Advocate Directive issued by 

10 the National Taxpayer Advocate pursuant to a dele11 gation of authority from the Commissioner of the In12 ternal Revenue Service— 

13 ‘‘(A) the Commissioner or a Deputy Com14 missioner shall modify, rescind, or ensure com15 pliance with such directive not later than 90 

16 days after the issuance of such directive, and 

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

18 modified or rescinded by a Deputy Commis19 sioner, the National Taxpayer Advocate may 

20 (not later than 90 days after such modification 

21 or rescission) appeal to the Commissioner and 

22 the Commissioner shall (not later than 90 days 

23 after such appeal is made) ensure compliance 

24 with such directive as issued by the National 

25 Taxpayer Advocate or provide the National Tax-
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1 payer Advocate with a detailed description of the 

2 reasons for any modification or rescission made 

3 or upheld by the Commissioner pursuant to such 

4 appeal.’’. 

5 (2) REPORT TO CERTAIN COMMITTEES OF CON6 GRESS REGARDING DIRECTIVES.—Section 

7 7803(c)(2)(B)(ii) is amended by redesignating sub8 clauses (VIII) through (XI) as subclauses (IX) through 

9 (XII), respectively, and by inserting after subclause 

10 (VII) the following new subclause: 

11 ‘‘(VIII) identify any Taxpayer 

12 Advocate Directive which was not hon13 ored by the Internal Revenue Service 

14 in a timely manner, as specified under 

15 paragraph (5);’’. 

16 (b) NATIONAL TAXPAYER ADVOCATE ANNUAL RE17 PORTS TO CONGRESS.— 

18 (1) INCLUSION OF MOST SERIOUS TAXPAYER

19 PROBLEMS.—Section 7803(c)(2)(B)(ii)(III) is amend20 ed by striking ‘‘at least 20 of the’’ and inserting ‘‘the 

21 10’’. 

22 (2) COORDINATION WITH TREASURY INSPECTOR

23 GENERAL FOR TAX ADMINISTRATION.—Section 

24 7803(c)(2) is amended by adding at the end the fol25 lowing new subparagraph: 
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1 ‘‘(E) COORDINATION WITH TREASURY IN2 SPECTOR GENERAL FOR TAX ADMINISTRATION.— 

3 Before beginning any research or study, the Na4 tional Taxpayer Advocate shall coordinate with 

5 the Treasury Inspector General for Tax Admin6 istration to ensure that the National Taxpayer 

7 Advocate does not duplicate any action that the 

8 Treasury Inspector General for Tax Administra9 tion has already undertaken or has a plan to un10 dertake.’’. 

11 (3) STATISTICAL SUPPORT.— 

12 (A) IN GENERAL.—Section 6108 is amended 

13 by adding at the end the following new sub14 section: 

15 ‘‘(d) STATISTICAL SUPPORT FOR NATIONAL TAXPAYER

16 ADVOCATE.—The Secretary shall, upon request of the Na17 tional Taxpayer Advocate, provide the National Taxpayer 

18 Advocate with statistical support in connection with the 

19 preparation by the National Taxpayer Advocate of the an20 nual report described in section 7803(c)(2)(B)(ii). Such sta21 tistical support shall include statistical studies, compila22 tions, and the review of information provided by the Na23 tional Taxpayer Advocate for statistical validity and sound 

24 statistical methodology.’’. 
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1 (B) DISCLOSURE OF REVIEW.—Section 

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

3 is amended by redesignating subclause (XII) as 

4 subclause (XIII) and by inserting after subclause 

5 (XI) the following new subclause: 

6 ‘‘(XII) with respect to any statis7 tical information included in such re8 port, include a statement of whether 

9 such statistical information was re10 viewed or provided by the Secretary 

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

12 whether the Secretary determined such 

13 information to be statistically valid 

14 and based on sound statistical method15 ology.’’. 

16 (C) CONFORMING AMENDMENT.—Section 

17 7803(c)(2)(B)(iii) is amended by adding at the 

18 end the following: ‘‘The preceding sentence shall 

19 not apply with respect to statistical information 

20 provided to the Secretary for review, or received 

21 from the Secretary, under section 6108(d).’’. 

22 (c) SALARY OF NATIONAL TAXPAYER ADVOCATE.—Sec23 tion 7803(c)(1)(B)(i) is amended by striking ‘‘, or, if the 

24 Secretary of the Treasury so determines, at a rate fixed 

25 under section 9503 of such title’’. 
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1 (d) EFFECTIVE DATE.— 

2 (1) IN GENERAL.—Except as otherwise provided 

3 in this subsection, the amendments made by this sec4 tion shall take effect on the date of the enactment of 

5 this Act. 

6 (2) SALARY OF NATIONAL TAXPAYER ADVO7 CATE.—The amendment made by subsection (c) shall 

8 apply to compensation paid to individuals appointed 

9 as the National Taxpayer Advocate after the date of 

10 the enactment of this Act. 

11 SEC. 1302. MODERNIZATION OF INTERNAL REVENUE SERV12 ICE ORGANIZATIONAL STRUCTURE. 

13 (a) IN GENERAL.—Not later than September 30, 2020, 

14 the Commissioner of the Internal Revenue Service shall sub15 mit to Congress a comprehensive written plan to redesign 

16 the organization of the Internal Revenue Service. Such plan 

17 shall— 

18 (1) ensure the successful implementation of the 

19 priorities specified by Congress in this Act, 

20 (2) prioritize taxpayer services to ensure that all 

21 taxpayers easily and readily receive the assistance 

22 that they need, 

23 (3) streamline the structure of the agency includ24 ing minimizing the duplication of services and re25 sponsibilities within the agency, 
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1 (4) best position the Internal Revenue Service to 

2 combat cybersecurity and other threats to the Internal 

3 Revenue Service, and 

4 (5) address whether the Criminal Investigation 

5 Division of the Internal Revenue Service should re6 port directly to the Commissioner. 

7 (b) REPEAL OF RESTRICTION ON ORGANIZATIONAL

8 STRUCTURE OF INTERNAL REVENUE SERVICE.—Para9 graph (3) of section 1001(a) of the Internal Revenue Service 

10 Restructuring and Reform Act of 1998 shall cease to apply 

11 beginning 1 year after the date on which the Commissioner 

12 of the Internal Revenue Service submits to Congress the 

13 plan described in subsection (a). 

14 Subtitle E—Other Provisions 

15 SEC. 1401. RETURN PREPARATION PROGRAMS FOR APPLI16 CABLE TAXPAYERS. 

17 (a) IN GENERAL.—Chapter 77 is amended by insert18 ing after section 7526 the following new section: 

19 ‘‘SEC. 7526A. RETURN PREPARATION PROGRAMS FOR APPLI20 CABLE TAXPAYERS. 

21 ‘‘(a) ESTABLISHMENT OF VOLUNTEER INCOME TAX

22 ASSISTANCE MATCHING GRANT PROGRAM.—The Secretary 

23 shall establish a Community Volunteer Income Tax Assist24 ance Matching Grant Program under which the Secretary 

25 may, subject to the availability of appropriated funds, make 
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1 grants to provide matching funds for the development, ex2 pansion, or continuation of qualified return preparation 

3 programs assisting applicable taxpayers and members of 

4 underserved populations. 

5 ‘‘(b) USE OF FUNDS.— 

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

7 programs may use grants received under this section 

8 for— 

9 ‘‘(A) ordinary and necessary costs associ10 ated with program operation in accordance with 

11 cost principles under the applicable Office of 

12 Management and Budget circular, including— 

13 ‘‘(i) wages or salaries of persons co14 ordinating the activities of the program, 

15 ‘‘(ii) developing training materials, 

16 conducting training, and performing qual17 ity reviews of the returns prepared under 

18 the program, 

19 ‘‘(iii) equipment purchases, and 

20 ‘‘(iv) vehicle-related expenses associated 

21 with remote or rural tax preparation serv22 ices, 

23 ‘‘(B) outreach and educational activities de24 scribed in subsection (c)(2)(B), and 
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1 ‘‘(C) services related to financial education 

2 and capability, asset development, and the estab3 lishment of savings accounts in connection with 

4 tax return preparation. 

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

6 qualified return preparation program must provide 

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

8 grants provided under this section. Matching funds 

9 may include— 

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

11 of individuals performing services for the pro12 gram, 

13 ‘‘(B) the cost of equipment used in the pro14 gram, and 

15 ‘‘(C) other ordinary and necessary costs as16 sociated with the program. 

17 Indirect expenses, including general overhead of any 

18 entity administering the program, shall not be count19 ed as matching funds. 

20 ‘‘(c) APPLICATION.— 

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

22 under this section shall submit an application to the 

23 Secretary at such time, in such manner, and con24 taining such information as the Secretary may rea25 sonably require. 
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1 ‘‘(2) PRIORITY.—In awarding grants under this 

2 section, the Secretary shall give priority to applica3 tions which demonstrate— 

4 ‘‘(A) assistance to applicable taxpayers, 

5 with emphasis on outreach to, and services for, 

6 such taxpayers, 

7 ‘‘(B) taxpayer outreach and educational ac8 tivities relating to eligibility and availability of 

9 income supports available through this title, in10 cluding the earned income tax credit, and 

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

12 more underserved populations. 

13 ‘‘(3) AMOUNTS TAKEN INTO ACCOUNT.—In deter14 mining matching grants under this section, the Sec15 retary shall only take into account amounts provided 

16 by the qualified return preparation program for ex17 penses described in subsection (b). 

18 ‘‘(d) PROGRAM ADHERENCE.— 

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

20 procedures for, and shall conduct not less frequently 

21 than once every 5 calendar years during which a 

22 qualified return preparation program is operating 

23 under a grant under this section, periodic site vis24 its— 
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1 ‘‘(A) to ensure the program is carrying out 

2 the purposes of this section, and 

3 ‘‘(B) to determine whether the program 

4 meets such program adherence standards as the 

5 Secretary shall by regulation or other guidance 

6 prescribe. 

7 ‘‘(2) ADDITIONAL REQUIREMENTS FOR GRANT

8 RECIPIENTS NOT MEETING PROGRAM ADHERENCE

9 STANDARDS.—In the case of any qualified return 

10 preparation program which— 

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

12 and 

13 ‘‘(B) is subsequently determined— 

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

15 standards described in paragraph (1)(B), or 

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

17 the purposes of this section, 

18 such program shall not be eligible for any additional 

19 grants under this section unless such program pro20 vides sufficient documentation of corrective measures 

21 established to address any such deficiencies deter22 mined. 

23 ‘‘(e) DEFINITIONS.—For purposes of this section— 
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1 ‘‘(1) QUALIFIED RETURN PREPARATION PRO2 GRAM.—The term ‘qualified return preparation pro3 gram’ means any program— 

4 ‘‘(A) which provides assistance to individ5 uals, not less than 90 percent of whom are appli6 cable taxpayers, in preparing and filing Federal 

7 income tax returns, 

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

9 entity, 

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

11 the preparation of Federal income tax returns 

12 meet the training requirements prescribed by the 

13 Secretary, and 

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

15 which reviews 100 percent of all returns. 

16 ‘‘(2) QUALIFIED ENTITY.— 

17 ‘‘(A) IN GENERAL.—The term ‘qualified en18 tity’ means any entity which— 

19 ‘‘(i) is an eligible organization, 

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

21 filing and payment requirements, 

22 ‘‘(iii) is not debarred or suspended 

23 from Federal contracts, grants, or coopera24 tive agreements, and 
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1 ‘‘(iv) agrees to provide documentation 

2 to substantiate any matching funds pro3 vided pursuant to the grant program under 

4 this section. 

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

6 ‘eligible organization’ means— 

7 ‘‘(i) an institution of higher education 

8 which is described in section 102 (other 

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

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

11 1002), as in effect on the date of the enact12 ment of this section, and which has not been 

13 disqualified from participating in a pro14 gram under title IV of such Act, 

15 ‘‘(ii) an organization described in sec16 tion 501(c) and exempt from tax under sec17 tion 501(a), 

18 ‘‘(iii) a local government agency, in19 cluding— 

20 ‘‘(I) a county or municipal gov21 ernment agency, and 

22 ‘‘(II) an Indian tribe, as defined 

23 in section 4(13) of the Native Amer24 ican Housing Assistance and Self-De25 termination Act of 1996 (25 U.S.C. 
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1 4103(13)), including any tribally des2 ignated housing entity (as defined in 

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

4 4103(22))), tribal subsidiary, subdivi5 sion, or other wholly owned tribal enti6 ty, 

7 ‘‘(iv) a local, State, regional, or na8 tional coalition (with one lead organization 

9 which meets the eligibility requirements of 

10 clause (i), (ii), or (iii) acting as the appli11 cant organization), or 

12 ‘‘(v) in the case of applicable taxpayers 

13 and members of underserved populations 

14 with respect to which no organizations de15 scribed in the preceding clauses are avail16 able— 

17 ‘‘(I) a State government agency, 

18 or 

19 ‘‘(II) an office providing Coopera20 tive Extension services (as established 

21 at the land-grant colleges and univer22 sities under the Smith-Lever Act of 

23 May 8, 1914). 

24 ‘‘(3) APPLICABLE TAXPAYERS.—The term ‘appli25 cable taxpayer’ means a taxpayer whose income for 
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1 the taxable year does not exceed an amount equal to 

2 the completed phaseout amount under section 32(b) 

3 for a married couple filing a joint return with three 

4 or more qualifying children, as determined in a rev5 enue procedure or other published guidance. 

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

7 ‘underserved population’ includes populations of per8 sons with disabilities, persons with limited English 

9 proficiency, Native Americans, individuals living in 

10 rural areas, members of the Armed Forces and their 

11 spouses, and the elderly. 

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

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

14 of a qualified return preparation program, the Sec15 retary is authorized to award a multi-year grant not 

16 to exceed 3 years. 

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

18 provided by specific appropriation, the Secretary 

19 shall not allocate more than $30,000,000 per fiscal 

20 year (exclusive of costs of administering the program) 

21 to grants under this section. 

22 ‘‘(g) PROMOTION OF PROGRAMS.— 

23 ‘‘(1) IN GENERAL.—The Secretary shall promote 

24 tax preparation through qualified return preparation 
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1 programs through the use of mass communications 

2 and other means. 

3 ‘‘(2) PROVISION OF INFORMATION REGARDING

4 QUALIFIED RETURN PREPARATION PROGRAMS.—The 

5 Secretary may provide taxpayers information regard6 ing qualified return preparation programs receiving 

7 grants under this section. 

8 ‘‘(3) VITA GRANTEE REFERRAL.—Qualified re9 turn preparation programs receiving a grant under 

10 this section are encouraged, in appropriate cases, to— 

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

12 and eligibility requirements for receiving, advice 

13 and assistance from qualified low-income tax14 payer clinics receiving funding under section 

15 7526, and 

16 ‘‘(B) provide information regarding the lo17 cation of, and contact information for, such clin18 ics.’’. 

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

20 chapter 77 is amended by inserting after the item relating 

21 to section 7526 the following new item: 

‘‘Sec. 7526A. Return preparation programs for applicable taxpayers.’’. 
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1 SEC. 1402. PROVISION OF INFORMATION REGARDING LOW2 INCOME TAXPAYER CLINICS. 

3 (a) IN GENERAL.—Section 7526(c) of the Internal 

4 Revenue Code of 1986 is amended by adding at the end 

5 the following new paragraph: 

6 ‘‘(6) PROVISION OF INFORMATION REGARDING

7 QUALIFIED LOW-INCOME TAXPAYER CLINICS.—Not8 withstanding any other provision of law, officers and 

9 employees of the Department of the Treasury may— 

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

11 and eligibility requirements for receiving, advice 

12 and assistance from one or more specific quali13 fied low-income taxpayer clinics receiving fund14 ing under this section, and 

15 ‘‘(B) provide information regarding the lo16 cation of, and contact information for, such clin17 ics.’’. 

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

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

20 Act. 

21 SEC. 1403. NOTICE FROM IRS REGARDING CLOSURE OF TAX22 PAYER ASSISTANCE CENTERS. 

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

24 closure of a Taxpayer Assistance Center would take effect, 

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

26 shall— 
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1 (1) make publicly available (including by non2 electronic means) a notice which— 

3 (A) identifies the Taxpayer Assistance Cen4 ter proposed for closure and the date of such pro5 posed closure, and 

6 (B) identifies the relevant alternative 

7 sources of taxpayer assistance which may be uti8 lized by taxpayers affected by such proposed clo9 sure, and 

10 (2) submit to Congress a written report that in11 cludes— 

12 (A) the information included in the notice 

13 described in paragraph (1), 

14 (B) the reasons for such proposed closure, 

15 and 

16 (C) such other information as the Secretary 

17 may determine appropriate. 

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

19 GOODS RESTRICTED TO ONLY PERISHABLE 

20 GOODS. 

21 (a) IN GENERAL.—Section 6336 of the Internal Rev22 enue Code of 1986 is amended by striking ‘‘or become great23 ly reduced in price or value by keeping, or that such prop24 erty cannot be kept without great expense’’. 
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1 (b) EFFECTIVE DATE.—The amendment made by this 

2 section shall apply to property seized after the date of the 

3 enactment of this Act. 

4 SEC. 1405. WHISTLEBLOWER REFORMS. 

5 (a) MODIFICATIONS TO DISCLOSURE RULES FOR

6 WHISTLEBLOWERS.— 

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

8 by adding at the end the following new paragraph: 

9 ‘‘(13) DISCLOSURE TO WHISTLEBLOWERS.— 

10 ‘‘(A) IN GENERAL.—The Secretary may dis11 close, to any individual providing information 

12 relating to any purpose described in paragraph 

13 (1) or (2) of section 7623(a), return information 

14 related to the investigation of any taxpayer with 

15 respect to whom the individual has provided 

16 such information, but only to the extent that 

17 such disclosure is necessary in obtaining infor18 mation, which is not otherwise reasonably avail19 able, with respect to the correct determination of 

20 tax liability for tax, or the amount to be collected 

21 with respect to the enforcement of any other pro22 vision of this title. 

23 ‘‘(B) UPDATES ON WHISTLEBLOWER INVES24 TIGATIONS.—The Secretary shall disclose to an 

25 individual providing information relating to 
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1 any purpose described in paragraph (1) or (2) 

2 of section 7623(a) the following: 

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

4 for which the individual has provided infor5 mation has been referred for an audit or ex6 amination, a notice with respect to such re7 ferral. 

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

9 taxpayer with respect to whom the indi10 vidual has provided information has made 

11 a payment of tax with respect to tax liabil12 ity to which such information relates, a no13 tice with respect to such payment. 

14 ‘‘(iii) Subject to such requirements and 

15 conditions as are prescribed by the Sec16 retary, upon a written request by such indi17 vidual— 

18 ‘‘(I) information on the status 

19 and stage of any investigation or ac20 tion related to such information, and 

21 ‘‘(II) in the case of a determina22 tion of the amount of any award under 

23 section 7623(b), the reasons for such 

24 determination. 
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1 Clause (iii) shall not apply to any information 

2 if the Secretary determines that disclosure of 

3 such information would seriously impair Federal 

4 tax administration. Information described in 

5 clauses (i), (ii), and (iii) may be disclosed to a 

6 designee of the individual providing such infor7 mation in accordance with guidance provided by 

8 the Secretary.’’. 

9 (2) CONFORMING AMENDMENTS.— 

10 (A) CONFIDENTIALITY OF INFORMATION.— 

11 Section 6103(a)(3) is amended by striking ‘‘sub12 section (k)(10)’’ and inserting ‘‘paragraph (10) 

13 or (13) of subsection (k)’’. 

14 (B) PENALTY FOR UNAUTHORIZED DISCLO15 SURE.—Section 7213(a)(2) is amended by strik16 ing ‘‘(k)(10)’’ and inserting ‘‘(k)(10) or (13)’’. 

17 (C) COORDINATION WITH AUTHORITY TO

18 DISCLOSE FOR INVESTIGATIVE PURPOSES.—Sec19 tion 6103(k)(6) is amended by adding at the end 

20 the following new sentence: ‘‘This paragraph 

21 shall not apply to any disclosure to an indi22 vidual providing information relating to any 

23 purpose described in paragraph (1) or (2) of sec24 tion 7623(a) which is made under paragraph 

25 (13)(A).’’. 
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1 (b) PROTECTION AGAINST RETALIATION.—Section 

2 7623 is amended by adding at the end the following new 

3 subsection: 

4 ‘‘(d) CIVIL ACTION TO PROTECT AGAINST RETALIA5 TION CASES.— 

6 ‘‘(1) ANTI-RETALIATION WHISTLEBLOWER PRO7 TECTION FOR EMPLOYEES.—No employer, or any offi8 cer, employee, contractor, subcontractor, or agent of 

9 such employer, may discharge, demote, suspend, 

10 threaten, harass, or in any other manner discrimi11 nate against an employee in the terms and conditions 

12 of employment (including through an act in the ordi13 nary course of such employee’s duties) in reprisal for 

14 any lawful act done by the employee— 

15 ‘‘(A) to provide information, cause informa16 tion to be provided, or otherwise assist in an in17 vestigation regarding underpayment of tax or 

18 any conduct which the employee reasonably be19 lieves constitutes a violation of the internal rev20 enue laws or any provision of Federal law relat21 ing to tax fraud, when the information or assist22 ance is provided to the Internal Revenue Service, 

23 the Secretary of Treasury, the Treasury Inspec24 tor General for Tax Administration, the Comp25 troller General of the United States, the Depart-
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1 ment of Justice, the United States Congress, a 

2 person with supervisory authority over the em3 ployee, or any other person working for the em4 ployer who has the authority to investigate, dis5 cover, or terminate misconduct, or 

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

7 assist in any administrative or judicial action 

8 taken by the Internal Revenue Service relating to 

9 an alleged underpayment of tax or any violation 

10 of the internal revenue laws or any provision of 

11 Federal law relating to tax fraud. 

12 ‘‘(2) ENFORCEMENT ACTION.— 

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

14 discharge or other reprisal by any person in vio15 lation of paragraph (1) may seek relief under 

16 paragraph (3) by— 

17 ‘‘(i) filing a complaint with the Sec18 retary of Labor, or 

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

20 issued a final decision within 180 days of 

21 the filing of the complaint and there is no 

22 showing that such delay is due to the bad 

23 faith of the claimant, bringing an action at 

24 law or equity for de novo review in the ap25 propriate district court of the United 
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1 States, which shall have jurisdiction over 

2 such an action without regard to the 

3 amount in controversy. 

4 ‘‘(B) PROCEDURE.— 

5 ‘‘(i) IN GENERAL.—An action under 

6 subparagraph (A)(i) shall be governed 

7 under the rules and procedures set forth in 

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

9 Code. 

10 ‘‘(ii) EXCEPTION.—Notification made 

11 under section 42121(b)(1) of title 49, United 

12 States Code, shall be made to the person 

13 named in the complaint and to the em14 ployer. 

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

16 brought under subparagraph (A)(ii) shall be 

17 governed by the legal burdens of proof set 

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

19 States Code, except that in applying such 

20 section— 

21 ‘‘(I) ‘behavior described in para22 graph (1)’ shall be substituted for ‘be23 havior described in paragraphs (1) 

24 through (4) of subsection (a)’ each 
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1 place it appears in paragraph (2)(B) 

2 thereof, and 

3 ‘‘(II) ‘a violation of paragraph 

4 (1)’ shall be substituted for ‘a violation 

5 of subsection (a)’ each place it appears. 

6 ‘‘(iv) STATUTE OF LIMITATIONS.—A 

7 complaint under subparagraph (A)(i) shall 

8 be filed not later than 180 days after the 

9 date on which the violation occurs. 

10 ‘‘(v) JURY TRIAL.—A party to an ac11 tion brought under subparagraph (A)(ii) 

12 shall be entitled to trial by jury. 

13 ‘‘(3) REMEDIES.— 

14 ‘‘(A) IN GENERAL.—An employee prevailing 

15 in any action under paragraph (2)(A) shall be 

16 entitled to all relief necessary to make the em17 ployee whole. 

18 ‘‘(B) COMPENSATORY DAMAGES.—Relief for 

19 any action under subparagraph (A) shall in20 clude— 

21 ‘‘(i) reinstatement with the same se22 niority status that the employee would have 

23 had, but for the reprisal, 
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1 ‘‘(ii) the sum of 200 percent of the 

2 amount of back pay and 100 percent of all 

3 lost benefits, with interest, and 

4 ‘‘(iii) compensation for any special 

5 damages sustained as a result of the re6 prisal, including litigation costs, expert wit7 ness fees, and reasonable attorney fees. 

8 ‘‘(4) RIGHTS RETAINED BY EMPLOYEE.—Nothing 

9 in this section shall be deemed to diminish the rights, 

10 privileges, or remedies of any employee under any 

11 Federal or State law, or under any collective bar12 gaining agreement. 

13 ‘‘(5) NONENFORCEABILITY OF CERTAIN PROVI14 SIONS WAIVING RIGHTS AND REMEDIES OR REQUIRING

15 ARBITRATION OF DISPUTES.— 

16 ‘‘(A) WAIVER OF RIGHTS AND REMEDIES.— 

17 The rights and remedies provided for in this sub18 section may not be waived by any agreement, 

19 policy form, or condition of employment, includ20 ing by a predispute arbitration agreement. 

21 ‘‘(B) PREDISPUTE ARBITRATION AGREE22 MENTS.—No predispute arbitration agreement 

23 shall be valid or enforceable, if the agreement re24 quires arbitration of a dispute arising under this 

25 subsection.’’. 
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1 (c) EFFECTIVE DATE.— 

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

3 subsection (a) shall apply to disclosures made after 

4 the date of the enactment of this Act. 

5 (2) CIVIL PROTECTION.—The amendment made 

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

7 enactment of this Act. 

8 SEC. 1406. CUSTOMER SERVICE INFORMATION. 

9 The Secretary of the Treasury (or the Secretary’s dele10 gate) shall provide helpful information to taxpayers placed 

11 on hold during a telephone call to any Internal Revenue 

12 Service help line, including the following: 

13 (1) Information about common tax scams. 

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

15 scams. 

16 (3) Additional advice on how taxpayers can pro17 tect themselves from identity theft and tax scams. 

18 SEC. 1407. MISDIRECTED TAX REFUND DEPOSITS. 

19 Section 6402 is amended by adding at the end the fol20 lowing new subsection: 

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

22 later than the date which is 6 month after the date of the 

23 enactment of the Taxpayer First Act of 2018, the Secretary 

24 shall prescribe regulations to establish procedures to allow 

25 for— 
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1 ‘‘(1) taxpayers to report instances in which a re2 fund made by the Secretary by electronic funds trans3 fer was erroneously delivered to an account at a fi4 nancial institution for which the taxpayer is not the 

5 owner; 

6 ‘‘(2) coordination with financial institutions for 

7 the purpose of— 

8 ‘‘(A) identifying erroneous payments de9 scribed in paragraph (1); and 

10 ‘‘(B) recovery of the erroneously transferred 

11 amounts; and 

12 ‘‘(3) the refund to be delivered to the correct ac13 count of the taxpayer.’’. 

14 TITLE II—21ST CENTURY IRS 

15 Subtitle A—Cybersecurity and 

16 Identity Protection 

17 SEC. 2001. PUBLIC-PRIVATE PARTNERSHIP TO ADDRESS 

18 IDENTITY THEFT REFUND FRAUD. 

19 The Secretary of the Treasury (or the Secretary’s dele20 gate) shall work collaboratively with the public and private 

21 sectors to protect taxpayers from identity theft refund fraud. 
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1 SEC. 2002. RECOMMENDATIONS OF ELECTRONIC TAX AD2 MINISTRATION ADVISORY COMMITTEE RE3 GARDING IDENTITY THEFT REFUND FRAUD. 

4 The Secretary of the Treasury shall ensure that the ad5 visory group convened by the Secretary pursuant to section 

6 2001(b)(2) of the Internal Revenue Service Restructuring 

7 and Reform Act of 1998 (commonly known as the Electronic 

8 Tax Administration Advisory Committee) studies (includ9 ing by providing organized public forums) and makes rec10 ommendations to the Secretary regarding methods to pre11 vent identity theft and refund fraud. 

12 SEC. 2003. INFORMATION SHARING AND ANALYSIS CENTER. 

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

14 the Secretary’s delegate) may participate in an information 

15 sharing and analysis center to centralize, standardize, and 

16 enhance data compilation and analysis to facilitate sharing 

17 actionable data and information with respect to identity 

18 theft tax refund fraud. 

19 (b) DEVELOPMENT OF PERFORMANCE METRICS.—The 

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

21 develop metrics for measuring the success of such center in 

22 detecting and preventing identity theft tax refund fraud. 

23 (c) DISCLOSURE.— 

24 (1) IN GENERAL.—Section 6103(k), as amended 

25 by this Act, is amended by adding at the end the fol26 lowing new paragraph: 
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1 ‘‘(14) DISCLOSURE OF RETURN INFORMATION

2 FOR PURPOSES OF CYBERSECURITY AND THE PREVEN3 TION OF IDENTITY THEFT TAX REFUND FRAUD.— 

4 ‘‘(A) IN GENERAL.—Under such procedures 

5 and subject to such conditions as the Secretary 

6 may prescribe, the Secretary may disclose speci7 fied return information to specified ISAC par8 ticipants to the extent that the Secretary deter9 mines such disclosure is in furtherance of effec10 tive Federal tax administration relating to the 

11 detection or prevention of identity theft tax re12 fund fraud, validation of taxpayer identity, au13 thentication of taxpayer returns, or detection or 

14 prevention of cybersecurity threats. 

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

16 purposes of this paragraph— 

17 ‘‘(i) IN GENERAL.—The term ‘specified 

18 ISAC participant’ means— 

19 ‘‘(I) any person designated by the 

20 Secretary as having primary responsi21 bility for a function performed with re22 spect to the information sharing and 

23 analysis center described in section 

24 2003(a) of the Taxpayer First Act of 

25 2018, and 
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1 ‘‘(II) any person subject to the re2 quirements of section 7216 and which 

3 is a participant in such information 

4 sharing and analysis center. 

5 ‘‘(ii) INFORMATION SHARING AGREE6 MENT.—Such term shall not include any 

7 person unless such person has entered into 

8 a written agreement with the Secretary set9 ting forth the terms and conditions for the 

10 disclosure of information to such person 

11 under this paragraph, including require12 ments regarding the protection and safe13 guarding of such information by such per14 son. 

15 ‘‘(C) SPECIFIED RETURN INFORMATION.— 

16 For purposes of this paragraph, the term ‘speci17 fied return information’ means— 

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

19 connection with a case of potential identity 

20 theft refund fraud— 

21 ‘‘(I) in the case of such return 

22 filed electronically, the internet pro23 tocol address, device identification, 

24 email domain name, speed of comple25 tion, method of authentication, refund 
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1 method, and such other return infor2 mation related to the electronic filing 

3 characteristics of such return as the 

4 Secretary may identify for purposes of 

5 this subclause, and 

6 ‘‘(II) in the case of such return 

7 prepared by a tax return preparer, 

8 identifying information with respect to 

9 such tax return preparer, including the 

10 preparer taxpayer identification num11 ber and electronic filer identification 

12 number of such preparer, 

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

14 in connection with a case of a identity theft 

15 refund fraud which has been confirmed by 

16 the Secretary (pursuant to such procedures 

17 as the Secretary may provide), the informa18 tion referred to in subclauses (I) and (II) of 

19 clause (i), the name and taxpayer identi20 fication number of the taxpayer as it ap21 pears on the return, and any bank account 

22 and routing information provided for mak23 ing a refund in connection with such re24 turn, and 
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1 ‘‘(iii) in the case of any cybersecurity 

2 threat to the Internal Revenue Service, in3 formation similar to the information de4 scribed in subclauses (I) and (II) of clause 

5 (i) with respect to such threat. 

6 ‘‘(D) RESTRICTION ON USE OF DISCLOSED

7 INFORMATION.— 

8 ‘‘(i) DESIGNATED THIRD PARTIES.— 

9 Any return information received by a per10 son described in subparagraph (B)(i)(I) 

11 shall be used only for the purposes of and 

12 to the extent necessary in— 

13 ‘‘(I) performing the function such 

14 person is designated to perform under 

15 such subparagraph, 

16 ‘‘(II) facilitating disclosures au17 thorized under subparagraph (A) to 

18 persons described in subparagraph 

19 (B)(i)(II), and 

20 ‘‘(III) facilitating disclosures au21 thorized under subsection (d) to par22 ticipants in such information sharing 

23 and analysis center. 

24 ‘‘(ii) RETURN PREPARERS.—Any re25 turn information received by a person de-
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1 scribed in subparagraph (B)(i)(II) shall be 

2 treated for purposes of section 7216 as in3 formation furnished to such person for, or 

4 in connection with, the preparation of a re5 turn of the tax imposed under chapter 1. 

6 ‘‘(E) DATA PROTECTION AND SAFE7 GUARDS.—Return information disclosed under 

8 this paragraph shall be subject to such protec9 tions and safeguards as the Secretary may re10 quire in regulations or other guidance or in the 

11 written agreement referred to in subparagraph 

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

13 requirement that any unauthorized access to in14 formation disclosed under this paragraph, and 

15 any breach of any system in which such infor16 mation is held, be reported to the Treasury In17 spector General for Tax Administration.’’. 

18 (2) APPLICATION OF CIVIL AND CRIMINAL PEN19 ALTIES.— 

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

21 Act, is amended by striking ‘‘or (13)’’ and in22 serting ‘‘(13), or (14)’’. 

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

24 Act, is amended by striking ‘‘or (13)’’ and in25 serting ‘‘(13), or (14)’’. 
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1 SEC. 2004. COMPLIANCE BY CONTRACTORS WITH CON2 FIDENTIALITY SAFEGUARDS. 

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

4 adding at the end the following new paragraph: 

5 ‘‘(9) DISCLOSURE TO CONTRACTORS AND OTHER

6 AGENTS.—Notwithstanding any other provision of 

7 this section, no return or return information shall be 

8 disclosed to any contractor or other agent of a Fed9 eral, State, or local agency unless such agency, to the 

10 satisfaction of the Secretary— 

11 ‘‘(A) has requirements in effect which re12 quire each such contractor or other agent which 

13 would have access to returns or return informa14 tion to provide safeguards (within the meaning 

15 of paragraph (4)) to protect the confidentiality 

16 of such returns or return information, 

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

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

19 of contracts or agreements of less than 3 years in 

20 duration) of each contractor or other agent to de21 termine compliance with such requirements, 

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

23 review conducted under subparagraph (B) to the 

24 Secretary as part of the report required by para25 graph (4)(E), and 
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1 ‘‘(D) certifies to the Secretary for the most 

2 recent annual period that such contractor or 

3 other agent is in compliance with all such re4 quirements. 

5 The certification required by subparagraph (D) shall 

6 include the name and address of each contractor or 

7 other agent, a description of the contract or agreement 

8 with such contractor or other agent, and the duration 

9 of such contract or agreement. The requirements of 

10 this paragraph shall not apply to disclosures pursu11 ant to subsection (n) for purposes of Federal tax ad12 ministration.’’. 

13 (b) CONFORMING AMENDMENT.—Section 

14 6103(p)(8)(B) is amended by inserting ‘‘or paragraph (9)’’ 

15 after ‘‘subparagraph (A)’’. 

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

17 section shall apply to disclosures made after December 31, 

18 2022. 

19 SEC. 2005. REPORT ON ELECTRONIC PAYMENTS. 

20 Not later than 2 years after the date of the enactment 

21 of this Act, the Secretary of the Treasury (or the Secretary’s 

22 delegate), in coordination with the Bureau of Fiscal Service 

23 and the Internal Revenue Service, and in consultation with 

24 private sector financial institutions, shall submit a written 

25 report to Congress describing how the government can uti-
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1 lize new payment platforms to increase the number of tax 

2 refunds paid by electronic funds transfer. Such report shall 

3 weigh the interests of reducing identity theft tax refund 

4 fraud, reducing the Federal Government’s costs in deliv5 ering tax refunds, the costs and any associated fees charged 

6 to taxpayers (including monthly and point-of-service fees) 

7 to access their tax refunds, the impact on individuals who 

8 do not have access to financial accounts or institutions, and 

9 ensuring payments are made to accounts at a financial in10 stitution that complies with section 21 of the Federal De11 posit Insurance Act, chapter 2 of title I of Public Law 91– 

12 508, and subchapter II of chapter 53 of title 31, United 

13 States Code (commonly referred to collectively as the ‘‘Bank 

14 Secrecy Act’’) and the USA PATRIOT Act. Such report 

15 shall include any legislative recommendations necessary to 

16 accomplish these goals. 

17 SEC. 2006. IDENTITY PROTECTION PERSONAL IDENTIFICA18 TION NUMBERS. 

19 (a) IN GENERAL.—Subject to subsection (b), the Sec20 retary of the Treasury or the Secretary’s delegate (hereafter 

21 referred to in this section as the ‘‘Secretary’’) shall establish 

22 a program to issue, upon the request of any individual, a 

23 number which may be used in connection with such indi24 vidual’s social security number (or other identifying infor25 mation with respect to such individual as determined by 
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1 the Secretary) to assist the Secretary in verifying such indi2 vidual’s identity. 

3 (b) REQUIREMENTS.— 

4 (1) ANNUAL EXPANSION.—For each calendar 

5 year beginning after the date of the enactment of this 

6 Act, the Secretary shall provide numbers through the 

7 program described in subsection (a) to individuals re8 siding in such States as the Secretary deems appro9 priate, provided that the total number of States served 

10 by such program during such year is greater than the 

11 total number of States served by such program during 

12 the preceding year. 

13 (2) NATIONWIDE AVAILABILITY.—Not later than 

14 5 years after the date of the enactment of this Act, the 

15 Secretary shall ensure that the program described in 

16 subsection (a) is made available to any individual re17 siding in the United States. 

18 SEC. 2007. SINGLE POINT OF CONTACT FOR TAX-RELATED 

19 IDENTITY THEFT VICTIMS. 

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

21 the Secretary’s delegate) shall establish and implement pro22 cedures to ensure that any taxpayer whose return has been 

23 delayed or otherwise adversely affected due to tax-related 

24 identity theft has a single point of contact at the Internal 

25 Revenue Service throughout the processing of the taxpayer’s 
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1 case. The single point of contact shall track the taxpayer’s 

2 case to completion and coordinate with other Internal Rev3 enue Service employees to resolve case issues as quickly as 

4 possible. 

5 (b) SINGLE POINT OF CONTACT.— 

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

7 (a), the single point of contact shall consist of a team 

8 or subset of specially trained employees who— 

9 (A) have the ability to work across func10 tions to resolve the issues involved in the tax11 payer’s case; and 

12 (B) shall be accountable for handling the 

13 case until its resolution. 

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

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

16 may change as required to meet the needs of the Inter17 nal Revenue Service, provided that procedures have 

18 been established to— 

19 (A) ensure continuity of records and case 

20 history; and 

21 (B) notify the taxpayer when appropriate. 

22 SEC. 2008. NOTIFICATION OF SUSPECTED IDENTITY THEFT. 

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

24 at the end the following new section: 
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1 ‘‘SEC. 7529. NOTIFICATION OF SUSPECTED IDENTITY 

2 THEFT. 

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

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

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

6 jeopardizing an investigation relating to tax administra7 tion— 

8 ‘‘(1) as soon as practicable, notify the individual 

9 of such determination and provide— 

10 ‘‘(A) instructions on how to file a report 

11 with law enforcement regarding the unauthorized 

12 use of the identity of the individual, 

13 ‘‘(B) the identification of any forms nec14 essary for the individual to complete and submit 

15 to law enforcement to permit access to personal 

16 information of the individual during the inves17 tigation, 

18 ‘‘(C) information regarding actions the in19 dividual may take in order to protect the indi20 vidual from harm relating to such unauthorized 

21 use, and 

22 ‘‘(D) an offer of identity protection meas23 ures to be provided to the individual by the In24 ternal Revenue Service, such as the use of an 

25 identity protection personal identification num26 ber, and 
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1 ‘‘(2) at the time the information described in 

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

3 time, as soon as practicable thereafter), issue addi4 tional notifications to such individual (or such indi5 vidual’s designee) regarding— 

6 ‘‘(A) whether an investigation has been ini7 tiated in regards to such unauthorized use, 

8 ‘‘(B) whether the investigation substantiated 

9 an unauthorized use of the identity of the indi10 vidual, and 

11 ‘‘(C) whether— 

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

13 a person relating to such unauthorized use, 

14 or 

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

16 criminal prosecution of such person and, to 

17 the extent such information is available, 

18 whether such person has been criminally 

19 charged by indictment or information. 

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

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

22 the unauthorized use of the identity of an individual 

23 includes the unauthorized use of the identity of the in24 dividual to obtain employment. 
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1 ‘‘(2) DETERMINATION OF EMPLOYMENT-RELATED

2 IDENTITY THEFT.—For purposes of this section, in 

3 making a determination as to whether there has been 

4 or may have been an unauthorized use of the identity 

5 of an individual to obtain employment, the Secretary 

6 shall review any information— 

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

8 section 6051 or an information return relating 

9 to compensation for services rendered other than 

10 as an employee, or 

11 ‘‘(B) provided to the Internal Revenue Serv12 ice by the Social Security Administration re13 garding any statement described in section 6051, 

14 which indicates that the social security account num15 ber provided on such statement or information return 

16 does not correspond with the name provided on such 

17 statement or information return or the name on the 

18 tax return reporting the income which is included on 

19 such statement or information return.’’. 

20 (b) ADDITIONAL MEASURES.— 

21 (1) EXAMINATION OF BOTH PAPER AND ELEC22 TRONIC STATEMENTS AND RETURNS.—The Secretary 

23 of the Treasury (or the Secretary’s delegate) shall ex24 amine the statements, information returns, and tax 

25 returns described in section 7529(b)(2) of the Internal 
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1 Revenue Code of 1986 (as added by subsection (a)) for 

2 any evidence of employment-related identity theft, re3 gardless of whether such statements or returns are 

4 submitted electronically or on paper. 

5 (2) IMPROVEMENT OF EFFECTIVE RETURN PROC6 ESSING PROGRAM WITH SOCIAL SECURITY ADMINIS7 TRATION.—Section 232 of the Social Security Act (42 

8 U.S.C. 432) is amended by inserting after the third 

9 sentence the following: ‘‘For purposes of carrying out 

10 the return processing program described in the pre11 ceding sentence, the Commissioner of Social Security 

12 shall request, not less than annually, such informa13 tion described in section 7529(b)(2) of the Internal 

14 Revenue Code of 1986 as may be necessary to ensure 

15 the accuracy of the records maintained by the Com16 missioner of Social Security related to the amounts of 

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

18 income derived by, individuals.’’. 

19 (3) UNDERREPORTING OF INCOME.—The Sec20 retary (or the Secretary’s delegate) shall establish pro21 cedures to ensure that income reported in connection 

22 with the unauthorized use of a taxpayer’s identity is 

23 not taken into account in determining any penalty 

24 for underreporting of income by the victim of identity 

25 theft. 
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1 (c) CLERICAL AMENDMENT.—The table of sections for 

2 chapter 77 is amended by adding at the end the following 

3 new item: 

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

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

5 section shall apply to determinations made after the date 

6 that is 6 months after the date of the enactment of this Act. 

7 SEC. 2009. GUIDELINES FOR STOLEN IDENTITY REFUND 

8 FRAUD CASES. 

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

10 of the enactment of this Act, the Secretary (or the Sec11 retary’s delegate), in consultation with the National Tax12 payer Advocate, shall develop and implement publicly 

13 available guidelines for management of cases involving sto14 len identity refund fraud in a manner that reduces the ad15 ministrative burden on taxpayers who are victims of such 

16 fraud. 

17 (b) STANDARDS AND PROCEDURES TO BE CONSID18 ERED.—The guidelines described in subsection (a) may in19 clude— 

20 (1) standards for— 

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

22 case involving stolen identity refund fraud 

23 should be resolved; 

24 (B) the maximum length of time, on aver25 age, a taxpayer who is a victim of stolen iden-
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1 tity refund fraud and is entitled to a tax refund 

2 which has been stolen should have to wait to re3 ceive such refund; and 

4 (C) the maximum number of offices and em5 ployees within the Internal Revenue Service with 

6 whom a taxpayer who is a victim of stolen iden7 tity refund fraud should be required to interact 

8 in order to resolve a case; 

9 (2) standards for opening, assigning, reas10 signing, or closing a case involving stolen identity re11 fund fraud; and 

12 (3) procedures for implementing and accom13 plishing the standards described in paragraphs (1) 

14 and (2), and measures for evaluating such procedures 

15 and determining whether such standards have been 

16 successfully implemented. 

17 SEC. 2010. INCREASED PENALTY FOR IMPROPER DISCLO18 SURE OR USE OF INFORMATION BY PRE19 PARERS OF RETURNS. 

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

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

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

23 (2) by inserting after subsection (a) the following 

24 new subsection: 
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1 ‘‘(b) ENHANCED PENALTY FOR IMPROPER USE OR

2 DISCLOSURE RELATING TO IDENTITY THEFT.— 

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

4 use described in subsection (a) that is made in con5 nection with a crime relating to the misappropriation 

6 of another person’s taxpayer identity (as defined in 

7 section 6103(b)(6)), whether or not such crime in8 volves any tax filing, subsection (a) shall be ap9 plied— 

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

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

12 ‘‘(2) SEPARATE APPLICATION OF TOTAL PENALTY

13 LIMITATION.—The limitation on the total amount of 

14 the penalty under subsection (a) shall be applied sep15 arately with respect to disclosures or uses to which 

16 this subsection applies and to which it does not 

17 apply.’’. 

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

19 by striking ‘‘$1,000’’ and inserting ‘‘$1,000 ($100,000 in 

20 the case of a disclosure or use to which section 6713(b) ap21 plies)’’. 

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

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

24 date of the enactment of this Act. 
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1 Subtitle B—Development of 

2 Information Technology 

3 SEC. 2101. MANAGEMENT OF INTERNAL REVENUE SERVICE 

4 INFORMATION TECHNOLOGY. 

5 (a) DUTIES AND RESPONSIBILITIES OF INTERNAL

6 REVENUE SERVICE CHIEF INFORMATION OFFICER.—Sec7 tion 7803, as amended by section 1001, is amended by add8 ing at the end the following new subsection: 

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

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

13 Chief Information Officer (hereafter referred to in this 

14 subsection as the ‘IRS CIO’) who shall be appointed 

15 by the Commissioner of the Internal Revenue Service. 

16 ‘‘(2) CENTRALIZED RESPONSIBILITY FOR INTER17 NAL REVENUE SERVICE INFORMATION TECHNOLOGY.— 

18 The Commissioner of the Internal Revenue Service 

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

20 with respect to all development, implementation, and 

21 maintenance of information technology for the Inter22 nal Revenue Service. Any reference in this subsection 

23 to the IRS CIO which directs the IRS CIO to take 

24 any action, or to assume any responsibility, shall be 
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1 treated as a reference to the Commissioner of the In2 ternal Revenue Service acting through the IRS CIO. 

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

5 ‘‘(A) be responsible for the development, im6 plementation, and maintenance of information 

7 technology for the Internal Revenue Service, 

8 ‘‘(B) ensure that the information technology 

9 of the Internal Revenue Service is secure and in10 tegrated, 

11 ‘‘(C) maintain operational control of all in12 formation technology for the Internal Revenue 

13 Service, 

14 ‘‘(D) be the principal advocate for the infor15 mation technology needs of the Internal Revenue 

16 Service, and 

17 ‘‘(E) consult with the Chief Procurement 

18 Officer of the Internal Revenue Service to ensure 

19 that the information technology acquired for the 

20 Internal Revenue Service is consistent with— 

21 ‘‘(i) the goals and requirements speci22 fied in subparagraphs (A) through (D), and 

23 ‘‘(ii) the strategic plan developed under 

24 paragraph (4). 

25 ‘‘(4) STRATEGIC PLAN.— 
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1 ‘‘(A) IN GENERAL.—The IRS CIO shall de2 velop and implement a multiyear strategic plan 

3 for the information technology needs of the Inter4 nal Revenue Service. Such plan shall— 

5 ‘‘(i) include performance measurements 

6 of such technology and of the implementa7 tion of such plan, 

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

9 enterprise architecture of the information 

10 technology of the Internal Revenue Service, 

11 ‘‘(iii) include and take into account 

12 the resources needed to accomplish such 

13 plan, 

14 ‘‘(iv) take into account planned major 

15 acquisitions of information technology by 

16 the Internal Revenue Service, including 

17 Customer Account Data Engine 2 and the 

18 Enterprise Case Management System, and 

19 ‘‘(v) align with the needs and strategic 

20 plan of the Internal Revenue Service. 

21 ‘‘(B) PLAN UPDATES.—The IRS CIO shall, 

22 not less frequently than annually, review and 

23 update the strategic plan under subparagraph 

24 (A) (including the plan for an integrated enter25 prise architecture described in subparagraph 
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1 (A)(ii)) to take into account the development of 

2 new information technology and the needs of the 

3 Internal Revenue Service. 

4 ‘‘(5) SCOPE OF AUTHORITY.— 

5 ‘‘(A) INFORMATION TECHNOLOGY.—For 

6 purposes of this subsection, the term ‘information 

7 technology’ has the meaning given such term by 

8 section 11101 of title 40, United States Code. 

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

10 reference in this subsection to the Internal Rev11 enue Service includes a reference to all compo12 nents of the Internal Revenue Service, includ13 ing— 

14 ‘‘(i) the Office of the Taxpayer Advo15 cate, 

16 ‘‘(ii) the Criminal Investigation Divi17 sion of the Internal Revenue Service, and 

18 ‘‘(iii) except as otherwise provided by 

19 the Secretary with respect to information 

20 technology related to matters described in 

21 subsection (b)(3)(B), the Office of the Chief 

22 Counsel.’’. 

23 (b) INDEPENDENT VERIFICATION AND VALIDATION OF

24 THE CUSTOMER ACCOUNT DATA ENGINE 2 AND ENTER25 PRISE CASE MANAGEMENT SYSTEM.— 
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1 (1) IN GENERAL.—The Commissioner of the In2 ternal Revenue Service shall enter into a contract 

3 with an independent reviewer to verify and validate 

4 the implementation plans (including the performance 

5 milestones and cost estimates included in such plans) 

6 developed for the Customer Account Data Engine 2 

7 and the Enterprise Case Management System. 

8 (2) DEADLINE FOR COMPLETION.—Such contract 

9 shall require that such verification and validation be 

10 completed not later than the date which is 1 year 

11 after the date of the enactment of this Act. 

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

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

14 shall not apply to phase 1 of the Customer Ac15 count Data Engine 2 and shall apply separately 

16 to each other phase. 

17 (B) DEADLINE FOR COMPLETING PLANS.— 

18 Not later than 1 year after the date of the enact19 ment of this Act, the Commissioner of the Inter20 nal Revenue Service shall complete the develop21 ment of plans for all phases of the Customer Ac22 count Data Engine 2. 

23 (C) DEADLINE FOR COMPLETION OF

24 VERIFICATION AND VALIDATION OF PLANS.—In 

25 the case of any phase after phase 2 of the Cus-
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1 tomer Account Data Engine 2, paragraph (2) 

2 shall be applied by substituting ‘‘the date on 

3 which the plan for such phase was completed’’ 

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

5 (c) COORDINATION OF IRS CIO AND CHIEF PROCURE6 MENT OFFICER OF THE INTERNAL REVENUE SERVICE.— 

7 (1) IN GENERAL.—The Chief Procurement Offi8 cer of the Internal Revenue Service shall— 

9 (A) identify all significant IRS information 

10 technology acquisitions and provide written noti11 fication to the Internal Revenue Service Chief 

12 Information Officer (hereafter referred to in this 

13 subsection as the ‘‘IRS CIO’’) of each such acqui14 sition in advance of such acquisition, and 

15 (B) regularly consult with the IRS CIO re16 garding acquisitions of information technology 

17 for the Internal Revenue Service, including meet18 ing with the IRS CIO regarding such acquisi19 tions upon request. 

20 (2) SIGNIFICANT IRS INFORMATION TECHNOLOGY

21 ACQUISITIONS.—For purposes of this subsection, the 

22 term ‘‘significant IRS information technology acqui23 sitions’’ means— 
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1 (A) any acquisition of information tech2 nology for the Internal Revenue Service in excess 

3 of $1,000,000, and 

4 (B) such other acquisitions of information 

5 technology for the Internal Revenue Service (or 

6 categories of such acquisitions) as the IRS CIO, 

7 in consultation with the Chief Procurement Offi8 cer of the Internal Revenue Service, may iden9 tify. 

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

11 are also used in section 7803(f) of the Internal Rev12 enue Code of 1986 (as amended by subsection (a)) 

13 shall have the same meaning as when used in such 

14 section. 

15 SEC. 2102. DEVELOPMENT OF ONLINE ACCOUNTS AND POR16 TALS. 

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

18 the Secretary’s delegate (hereafter referred to in this section 

19 as the ‘‘Secretary’’) shall— 

20 (1) develop secure individualized online accounts 

21 to provide services to taxpayers and their designated 

22 return preparers, including obtaining taxpayer infor23 mation, making payment of taxes, sharing docu24 mentation, and (to the extent feasible) addressing and 

25 correcting issues, and 
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1 (2) develop a process for the acceptance of tax 

2 forms, and supporting documentation, in digital or 

3 other electronic format. 

4 (b) ELECTRONIC SERVICES TREATED AS SUPPLE5 MENTAL; APPLICATION OF SECURITY STANDARDS.—The 

6 Secretary shall ensure that the processes described in sub7 section (a)— 

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

9 for, other services provided by the Internal Revenue 

10 Service to taxpayers, including face-to-face taxpayer 

11 assistance and services provided by phone, and 

12 (2) comply with applicable security standards 

13 and guidelines. 

14 (c) PROCESS FOR DEVELOPING ONLINE ACCOUNTS.— 

15 (1) DEVELOPMENT OF PLAN.—Not later than 1 

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

17 Secretary shall submit to Congress a written report 

18 describing the Secretary’s plan for developing the se19 cure individualized online accounts described in sub20 section (a)(1). Such plan shall address the feasibility 

21 of taxpayers addressing and correcting issues through 

22 such accounts and whether access to such accounts 

23 should be restricted and in what manner. 

24 (2) DEADLINE.—The Secretary shall make every 

25 reasonable effort to make the secure individualized on-
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1 line accounts described in subsection (a)(1) available 

2 to taxpayers by December 31, 2023. 

3 SEC. 2103. INTERNET PLATFORM FOR FORM 1099 FILINGS. 

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

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

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

7 shall make available an Internet website or other electronic 

8 media, with a user interface and functionality similar to 

9 the Business Services Online Suite of Services provided by 

10 the Social Security Administration, that will provide access 

11 to resources and guidance provided by the Internal Revenue 

12 Service and will allow persons to— 

13 (1) prepare and file Forms 1099, 

14 (2) prepare Forms 1099 for distribution to re15 cipients other than the Internal Revenue Service, and 

16 (3) maintain a record of completed and sub17 mitted Forms 1099. 

18 (b) ELECTRONIC SERVICES TREATED AS SUPPLE19 MENTAL; APPLICATION OF SECURITY STANDARDS.—The 

20 Secretary shall ensure that the services described in sub21 section (a)— 

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

23 for, other services provided by the Internal Revenue 

24 Service to taxpayers, and 
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1 (2) comply with applicable security standards 

2 and guidelines. 

3 SEC. 2104. STREAMLINED CRITICAL PAY AUTHORITY FOR 

4 INFORMATION TECHNOLOGY POSITIONS. 

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

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

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

8 INFORMATION TECHNOLOGY POSITIONS. 

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

10 functionality of the information technology operations of 

11 the Internal Revenue Service— 

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

13 shall be applied— 

14 ‘‘(A) by substituting ‘during the period be15 ginning on the date of the enactment of section 

16 7812 of the Internal Revenue Code of 1986, and 

17 ending on September 30, 2023’ for ‘Before Sep18 tember 30, 2013 in subsection (a)’, 

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

20 subsection (a)(1), and 

21 ‘‘(C) by substituting ‘the date of the enact22 ment of the Taxpayer First Act of 2018’ for 

23 ‘June 1, 1998’ in subsection (a)(6), 

24 ‘‘(2) section 9504 of such title 5 shall be applied 

25 by substituting ‘During the period beginning on the 
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1 date of the enactment of section 7812 of the Internal 

2 Revenue Code of 1986, and ending on September 30, 

3 2023’ for ‘Before September 30, 2013’ each place it 

4 appears in subsections (a) and (b), and 

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

6 ‘‘(A) by substituting ‘During the period be7 ginning on the date of the enactment of section 

8 7812 of the Internal Revenue Code of 1986, and 

9 ending on September 30, 2023’ for ‘Before Sep10 tember 30, 2013’ in subsection (a), and 

11 ‘‘(B) by substituting ‘the information tech12 nology operations’ for ‘significant functions’ in 

13 subsection (a).’’. 

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

15 subchapter A of chapter 80 is amended by adding at the 

16 end the following new item: 

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

17 Subtitle C—Modernization of Con18 sent-based Income Verification 

19 System 

20 SEC. 2201. DISCLOSURE OF TAXPAYER INFORMATION FOR 

21 THIRD-PARTY INCOME VERIFICATION. 

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

23 of the 2-year period described in subsection (d)(1), the Sec24 retary of the Treasury or the Secretary’s delegate (hereafter 
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1 referred to in this section as the ‘‘Secretary’’) shall imple2 ment a program to ensure that any qualified disclosure— 

3 (1) is fully automated and accomplished through 

4 the Internet, and 

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

6 practicable. 

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

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

9 under section 6103(c) of the Internal Revenue Code of 1986 

10 of returns or return information by the Secretary to a per11 son seeking to verify the income or creditworthiness of a 

12 taxpayer who is a borrower in the process of a loan applica13 tion. 

14 (c) APPLICATION OF SECURITY STANDARDS.—The Sec15 retary shall ensure that the program described in subsection 

16 (a) complies with applicable security standards and guide17 lines. 

18 (d) USER FEE.— 

19 (1) IN GENERAL.—During the 2-year period be20 ginning on the first day of the 6th calendar month be21 ginning after the date of the enactment of this Act, 

22 the Secretary shall assess and collect a fee for quali23 fied disclosures (in addition to any other fee assessed 

24 and collected for such disclosures) at such rates as the 

25 Secretary determines are sufficient to cover the costs 
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1 related to implementing the program described in 

2 subsection (a), including the costs of any necessary 

3 infrastructure or technology. 

4 (2) DEPOSIT OF COLLECTIONS.—Amounts re5 ceived from fees assessed and collected under para6 graph (1) shall be deposited in, and credited to, an 

7 account solely for the purpose of carrying out the ac8 tivities described in subsection (a). Such amounts 

9 shall be available to carry out such activities without 

10 need of further appropriation and without fiscal year 

11 limitation. 

12 SEC. 2202. LIMIT REDISCLOSURES AND USES OF CONSENT13 BASED DISCLOSURES OF TAX RETURN INFOR14 MATION. 

15 (a) IN GENERAL.—Section 6103(c) is amended by add16 ing at the end the following: ‘‘Persons designated by the tax17 payer under this subsection to receive return information 

18 shall not use the information for any purpose other than 

19 the express purpose for which consent was granted and shall 

20 not disclose return information to any other person without 

21 the express permission of, or request by, the taxpayer.’’. 

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

23 is amended by inserting ‘‘subsection (c),’’ after ‘‘return in24 formation under’’. 
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1 (c) EFFECTIVE DATE.—The amendments made by this 

2 section shall apply to disclosures made after the date of the 

3 enactment of this Act. 

4 Subtitle D—Expanded Use of 

5 Electronic Systems 

6 SEC. 2301. ELECTRONIC FILING OF RETURNS. 

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

8 by striking ‘‘250’’ and inserting ‘‘the applicable number of’’. 

9 (b) APPLICABLE NUMBER.—Section 6011(e) is amend10 ed by striking paragraph (5) and inserting the following 

11 new paragraphs: 

12 ‘‘(5) APPLICABLE NUMBER.— 

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

15 ‘‘(i) except as provided in subpara16 graph (B), in the case of calendar years be17 fore 2020, 250, 

18 ‘‘(ii) in the case of calendar year 2020, 

19 100, and 

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

21 after 2020, 10. 

22 ‘‘(B) SPECIAL RULE FOR PARTNERSHIPS

23 FOR 2018 AND 2019.—In the case of a partnership, 

24 for any calendar year before 2020, the applicable 

25 number shall be— 
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1 ‘‘(i) in the case of calendar year 2018, 

2 200, and 

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

4 150. 

5 ‘‘(6) PARTNERSHIPS REQUIRED TO FILE ON MAG6 NETIC MEDIA.—Notwithstanding paragraph (2)(A), 

7 the Secretary shall require partnerships having more 

8 than 100 partners to file returns on magnetic 

9 media.’’. 

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

11 Section 6011(e)(3) is amended by adding at the end the 

12 following new subparagraph: 

13 ‘‘(D) EXCEPTION FOR CERTAIN PREPARERS

14 LOCATED IN AREAS WITHOUT INTERNET AC15 CESS.—The Secretary may waive the require16 ment of subparagraph (A) if the Secretary deter17 mines, on the basis of an application by the tax 

18 return preparer, that the preparer cannot meet 

19 such requirement by reason of being located in a 

20 geographic area which does not have access to 

21 internet service (other than dial-up or satellite 

22 service).’’. 

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

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

25 Act. 
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1 SEC. 2302. UNIFORM STANDARDS FOR THE USE OF ELEC2 TRONIC SIGNATURES FOR DISCLOSURE AU3 THORIZATIONS TO, AND OTHER AUTHORIZA4 TIONS OF, PRACTITIONERS. 

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

6 ‘‘(3) PUBLISHED GUIDANCE.— 

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

8 publish guidance as appropriate to define and 

9 implement any waiver of the signature require10 ments or any method adopted under paragraph 

11 (1). 

12 ‘‘(B) ELECTRONIC SIGNATURES FOR DIS13 CLOSURE AUTHORIZATIONS TO, AND OTHER AU14 THORIZATIONS OF, PRACTITIONERS.—Not later 

15 than 6 months after the date of the enactment of 

16 this subparagraph, the Secretary shall publish 

17 guidance to establish uniform standards and 

18 procedures for the acceptance of taxpayers’ sig19 natures appearing in electronic form with re20 spect to any request for disclosure of a taxpayer’s 

21 return or return information under section 

22 6103(c) to a practitioner or any power of attor23 ney granted by a taxpayer to a practitioner. 

24 ‘‘(C) PRACTITIONER.—For purposes of sub25 paragraph (B), the term ‘practitioner’ means 

26 any individual in good standing who is regu-
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1 lated under section 330 of title 31, United States 

2 Code.’’. 

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

4 CARDS. 

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

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

7 the extent that the Secretary ensures that any such fee or 

8 other consideration is fully recouped by the Secretary in 

9 the form of fees paid to the Secretary by persons paying 

10 taxes imposed under subtitle A with credit, debit, or charge 

11 cards pursuant to such contract. Notwithstanding the pre12 ceding sentence, the Secretary shall seek to minimize the 

13 amount of any fee or other consideration that the Secretary 

14 pays under any such contract.’’. 

15 SEC. 2304. REQUIREMENT THAT ELECTRONICALLY PRE16 PARED PAPER RETURNS INCLUDE SCAN17 NABLE CODE. 

18 (a) IN GENERAL.—Subsection (e) of section 6011, as 

19 amended by this Act, is amended by adding at the end the 

20 following new paragraph: 

21 ‘‘(7) SPECIAL RULE FOR RETURNS PREPARED

22 ELECTRONICALLY AND SUBMITTED ON PAPER.—The 

23 Secretary shall require that any return of tax which 

24 is prepared electronically, but is printed and filed on 
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1 paper, bear a code which can, when scanned, convert 

2 such return to electronic format.’’. 

3 (b) CONFORMING AMENDMENT.—Paragraph (1) of sec4 tion 6011(e) is amended by striking ‘‘paragraph (3)’’ and 

5 inserting ‘‘paragraphs (3) and (7)’’. 

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

7 section shall apply to returns of tax the due date for which 

8 (determined without regard to extensions) is after December 

9 31, 2020. 

10 SEC. 2305. AUTHENTICATION OF USERS OF ELECTRONIC 

11 SERVICES ACCOUNTS. 

12 Beginning 180 days after the date of the enactment 

13 of this Act, the Secretary of the Treasury (or the Secretary’s 

14 delegate) shall verify the identity of any individual opening 

15 an e-Services account with the Internal Revenue Service be16 fore such individual is able to use the e-Services tools. 

17 Subtitle E—Other Provisions 

18 SEC. 2401. REPEAL OF PROVISION REGARDING CERTAIN 

19 TAX COMPLIANCE PROCEDURES AND RE20 PORTS. 

21 Section 2004 of the Internal Revenue Service Restruc22 turing and Reform Act of 1998 (26 U.S.C. 6012 note) is 

23 repealed. 
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1 SEC. 2402. COMPREHENSIVE TRAINING STRATEGY. 

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

3 of this Act, the Commissioner of Internal Revenue shall sub4 mit to Congress a written report providing a comprehensive 

5 training strategy for employees of the Internal Revenue 

6 Service, including— 

7 (1) a plan to streamline current training proc8 esses, including an assessment of the utility of further 

9 consolidating internal training programs, technology, 

10 and funding, 

11 (2) a plan to develop annual training regarding 

12 taxpayer rights, including the role of the Office of the 

13 Taxpayer Advocate, for employees that interface with 

14 taxpayers and their managers, 

15 (3) a plan to improve technology-based training, 

16 (4) proposals to— 

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

18 and efficient resolution of taxpayer disputes for 

19 employees that interface with taxpayers and 

20 their managers, and 

21 (B) ensure consistency of skill development 

22 and employee evaluation throughout the Internal 

23 Revenue Service, and 

24 (5) a thorough assessment of the funding nec25 essary to implement such strategy. 
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1 TITLE III—MISCELLANEOUS 

2 PROVISIONS 

3 Subtitle A—Reform of Laws Gov4 erning Internal Revenue Service 

5 Employees 

6 SEC. 3001. ELECTRONIC RECORD RETENTION. 

7 (a) RETENTION OF RECORDS.— 

8 (1) IN GENERAL.—Email records of the Internal 

9 Revenue Service shall be retained in an appropriate 

10 electronic system that supports records management 

11 and litigation requirements, including the capability 

12 to identify, retrieve, and retain the records, in accord13 ance with the requirements described in paragraph 

14 (2). 

15 (2) REQUIREMENTS.— 

16 (A) PRIOR TO CERTIFICATION.—The Com17 missioner of Internal Revenue and the Chief 

18 Counsel for the Internal Revenue Service shall 

19 retain all email records generated on or after the 

20 date of the enactment of this Act and before the 

21 date on which the Treasury Inspector General for 

22 Tax Administration makes the certification 

23 under subsection (c)(1). 

24 (B) PRINCIPAL OFFICERS AND SPECIFIED

25 EMPLOYEES.—Not later than December 31, 2019, 
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1 the Commissioner of Internal Revenue and the 

2 Chief Counsel for the Internal Revenue Service 

3 shall maintain email records of all principal of4 ficers and specified employees of the Internal 

5 Revenue Service for a period of not less than 15 

6 years beginning on the date such record was gen7 erated. 

8 (b) TRANSMISSION OF RECORDS TO THE NATIONAL

9 ARCHIVES.—Not later than 15 years after the date on which 

10 an email record of a principal officer or specified employee 

11 of the Internal Revenue Service is generated, the Commis12 sioner of Internal Revenue and the Chief Counsel for the 

13 Internal Revenue Service shall transfer such email record 

14 to the Archivist of the United States. 

15 (c) COMPLIANCE.— 

16 (1) CERTIFICATION.—On the date that the Treas17 ury Inspector General for Tax Administration deter18 mines that the Internal Revenue Service has a pro19 gram in place that complies with the requirements of 

20 subsections (a)(2)(B) and (b), the Treasury Inspector 

21 General for Tax Administration shall certify to the 

22 Committee on Ways and Means of the House of Rep23 resentatives and the Committee on Finance of the 

24 Senate that the Internal Revenue Service is in com25 pliance with such requirements. 
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1 (2) REPORTS.— 

2 (A) INTERIM REPORT.—Not later than De3 cember 31, 2019, the Treasury Inspector General 

4 for Tax Administration shall submit a report to 

5 the Committee on Ways and Means of the House 

6 of Representatives and the Committee on Fi7 nance of the Senate on the steps being taken by 

8 the Commissioner of Internal Revenue and the 

9 Chief Counsel for the Internal Revenue Service to 

10 comply with the requirements of subsections 

11 (a)(2)(B) and (b). 

12 (B) FINAL REPORT.—Not later than April 

13 1, 2020, the Treasury Inspector General for Tax 

14 Administration shall submit a report to the 

15 Committee on Ways and Means of the House of 

16 Representatives and the Committee on Finance 

17 of the Senate describing whether the Internal 

18 Revenue Service is in compliance with the re19 quirements of subsections (a)(2)(B) and (b). 

20 (d) DEFINITIONS.—For purposes of this section— 

21 (1) PRINCIPAL OFFICER.—The term ‘‘principal 

22 officer’’ means, with respect to the Internal Revenue 

23 Service— 

24 (A) any employee whose position is listed 

25 under the Internal Revenue Service in the most 
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1 recent version of the United States Government 

2 Manual published by the Office of the Federal 

3 Register; 

4 (B) any employee who is a senior staff 

5 member reporting directly to the Commissioner 

6 of Internal Revenue or the Chief Counsel for the 

7 Internal Revenue Service; and 

8 (C) any associate counsel, deputy counsel, 

9 or division head in the Office of the Chief Coun10 sel for the Internal Revenue Service. 

11 (2) SPECIFIED EMPLOYEE.—The term ‘‘specified 

12 employee’’ means, with respect to the Internal Rev13 enue Service, any employee who— 

14 (A) holds a Senior Executive Service posi15 tion (as defined in section 3132 of title 5, United 

16 States Code) in the Internal Revenue Service or 

17 the Office of Chief Counsel for the Internal Rev18 enue Service; and 

19 (B) is not a principal officer of the Internal 

20 Revenue Service. 
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1 SEC. 3002. PROHIBITION ON REHIRING ANY EMPLOYEE OF 

2 THE INTERNAL REVENUE SERVICE WHO WAS 

3 INVOLUNTARILY SEPARATED FROM SERVICE 

4 FOR MISCONDUCT. 

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

6 at the end the following new subsection: 

7 ‘‘(d) PROHIBITION ON REHIRING EMPLOYEES INVOL8 UNTARILY SEPARATED.—The Commissioner may not hire 

9 any individual previously employed by the Commissioner 

10 who was removed for misconduct under this subchapter or 

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

12 whose employment was terminated under section 1203 of 

13 the Internal Revenue Service Restructuring and Reform Act 

14 of 1998 (26 U.S.C. 7804 note).’’. 

15 (b) EFFECTIVE DATE.—The amendment made by sub16 section (a) shall apply with respect to the hiring of employ17 ees after the date of the enactment of this Act. 

18 SEC. 3003. NOTIFICATION OF UNAUTHORIZED INSPECTION 

19 OR DISCLOSURE OF RETURNS AND RETURN 

20 INFORMATION. 

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

22 amended by adding at the end the following new sentences: 

23 ‘‘The Secretary shall also notify such taxpayer if the Inter24 nal Revenue Service or a Federal or State agency (upon 

25 notice to the Secretary by such Federal or State agency) 

26 proposes an administrative determination as to discipli-
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1 nary or adverse action against an employee arising from 

2 the employee’s unauthorized inspection or disclosure of the 

3 taxpayer’s return or return information. The notice de4 scribed in this subsection shall include the date of the unau5 thorized inspection or disclosure and the rights of the tax6 payer under such administrative determination.’’. 

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

8 section shall apply to determinations proposed after the 

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

10 this Act. 

11 Subtitle B—Provisions Relating to 

12 Exempt Organizations 

13 SEC. 3101. MANDATORY E-FILING BY EXEMPT ORGANIZA14 TIONS. 

15 (a) IN GENERAL.—Section 6033 is amended by redes16 ignating subsection (n) as subsection (o) and by inserting 

17 after subsection (m) the following new subsection: 

18 ‘‘(n) MANDATORY ELECTRONIC FILING.—Any organi19 zation required to file a return under this section shall file 

20 such return in electronic form.’’. 

21 (b) CONFORMING AMENDMENT.—Paragraph (7) of sec22 tion 527(j) is amended by striking ‘‘if the organization has’’ 

23 and all that follows through ‘‘such calendar year’’. 

24 (c) INSPECTION OF ELECTRONICALLY FILED ANNUAL

25 RETURNS.—Subsection (b) of section 6104 is amended by 
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1 adding at the end the following: ‘‘Any annual return re2 quired to be filed electronically under section 6033(n) shall 

3 be made available by the Secretary to the public as soon 

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

5 (d) EFFECTIVE DATE.— 

6 (1) IN GENERAL.—Except as provided in para7 graph (2), the amendments made by this section shall 

8 apply to taxable years beginning after the date of the 

9 enactment of this Act. 

10 (2) TRANSITIONAL RELIEF.— 

11 (A) SMALL ORGANIZATIONS.— 

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

13 small organizations, or any other organiza14 tions for which the Secretary of the Treas15 ury or the Secretary’s delegate (hereafter re16 ferred to in this paragraph as the ‘‘Sec17 retary’’) determines the application of the 

18 amendments made by this section would 

19 cause undue burden without a delay, the 

20 Secretary may delay the application of such 

21 amendments, but such delay shall not apply 

22 to any taxable year beginning on or after 

23 the date 2 years after of the enactment of 

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

4 (I) the gross receipts of which for 

5 the taxable year are less than 

6 $200,000; and 

7 (II) the aggregate gross assets of 

8 which at the end of the taxable year 

9 are less than $500,000. 

10 (B) ORGANIZATIONS FILING FORM 990–T.— 

11 In the case of any organization described in sec12 tion 511(a)(2) of the Internal Revenue Code of 

13 1986 which is subject to the tax imposed by sec14 tion 511(a)(1) of such Code on its unrelated 

15 business taxable income, or any organization re16 quired to file a return under section 6033 of such 

17 Code and include information under subsection 

18 (e) thereof, the Secretary may delay the applica19 tion of the amendments made by this section, but 

20 such delay shall not apply to any taxable year 

21 beginning on or after the date 2 years after of 

22 the enactment of this Act. 
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1 SEC. 3102. NOTICE REQUIRED BEFORE REVOCATION OF TAX 

2 EXEMPT STATUS FOR FAILURE TO FILE RE3 TURN. 

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

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

6 ‘‘(A) NOTICE.— 

7 ‘‘(i) IN GENERAL.—After an organiza8 tion described in subsection (a)(1) or (i) 

9 fails to file the annual return or notice re10 quired under either subsection for 2 consecu11 tive years, the Secretary shall notify the or12 ganization— 

13 ‘‘(I) that the Internal Revenue 

14 Service has no record of such a return 

15 or notice from such organization for 2 

16 consecutive years, and 

17 ‘‘(II) about the revocation that 

18 will occur under subparagraph (B) if 

19 the organization fails to file such a re20 turn or notice by the due date for the 

21 next such return or notice required to 

22 be filed. 

23 The notification under the preceding sen24 tence shall include information about how 

25 to comply with the filing requirements 

26 under subsection (a)(1) and (i). 
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1 ‘‘(B) REVOCATION.—If an organization’’. 

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

3 section shall apply to failures to file returns or notices for 

4 2 consecutive years if the return or notice for the second 

5 year is required to be filed after December 31, 2018. 

6 Subtitle C—Tax Court 

7 SEC. 3301. DISQUALIFICATION OF JUDGE OR MAGISTRATE 

8 JUDGE OF THE TAX COURT. 

9 (a) IN GENERAL.—Part II of subchapter C of chapter 

10 76 is amended by adding at the end the following new sec11 tion: 

12 ‘‘SEC. 7467. DISQUALIFICATION OF JUDGE OR MAGISTRATE 

13 JUDGE OF THE TAX COURT. 

14 ‘‘Section 455 of title 28, United States Code, shall 

15 apply to judges and magistrate judges of the Tax Court and 

16 to proceedings of the Tax Court.’’. 

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

18 such part is amended by adding at the end the following 

19 new item: 

‘‘Sec. 7467. Disqualification of judge or magistrate judge of the Tax Court.’’. 

20 SEC. 3302. OPINIONS AND JUDGMENTS. 

21 (a) IN GENERAL.—Section 7459 is amended by strik22 ing all the precedes subsection (c) and inserting the fol23 lowing: 
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1 ‘‘SEC. 7459. OPINIONS AND JUDGMENTS. 

2 ‘‘(a) REQUIREMENT.—An opinion upon any pro3 ceeding instituted before the Tax Court and a judgment 

4 thereon shall be made as quickly as practicable. The judg5 ment shall be made by a judge in accordance with the opin6 ion of the Tax Court, and such judgment so made shall, 

7 when entered, be the judgment of the Tax Court. 

8 ‘‘(b) INCLUSION OF FINDINGS OF FACT IN OPINION.— 

9 It shall be the duty of the Tax Court and of each division 

10 to include in its opinion or memorandum opinion upon 

11 any proceeding, its findings of fact. The Tax Court shall 

12 issue in writing all of its findings of fact, opinions, and 

13 memorandum opinions. Subject to such conditions as the 

14 Tax Court may by rule provide, the requirements of this 

15 subsection and of section 7460 are met if findings of fact 

16 or opinion are stated orally and recorded in the transcript 

17 of the proceedings.’’. 

18 (b) REFERENCES.—Section 7459 is amended by redes19 ignating subsection (g) as subsection (h) and by inserting 

20 after subsection (f) the following new subsection: 

21 ‘‘(g) REFERENCES.—Any reference in this title to a 

22 decision or report of the Tax Court shall be treated as a 

23 reference to a judgment or opinion of the Tax Court, respec24 tively.’’. 
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1 (c) CONFORMING AMENDMENT.—The item relating to 

2 section 7459 in the table of sections for part II of subchapter 

3 C of chapter 76 is amended to read as follows: 

‘‘Sec. 7459. Opinions and judgments.’’. 

4 (d) CONTINUING EFFECT OF LEGAL DOCUMENTS.—All 

5 orders, decisions, reports, rules, permits, agreements, 

6 grants, contracts, certificates, licenses, registrations, privi7 leges, and other administrative actions, in connection with 

8 the Tax Court, which are in effect at the time this section 

9 takes effect, or were final before the effective date of this 

10 section and are to become effective on or after the effective 

11 date of this section, shall continue in effect according to 

12 their terms until modified, terminated, superseded, set 

13 aside, or revoked in accordance with law by the Tax Court. 

14 SEC. 3303. TITLE OF SPECIAL TRIAL JUDGE CHANGED TO 

15 MAGISTRATE JUDGE OF THE TAX COURT. 

16 (a) IN GENERAL.—Section 7443A is amended— 

17 (1) by striking ‘‘special trial judges’’ in sub18 sections (a) and (e) and inserting ‘‘magistrate judges 

19 of the Tax Court’’, 

20 (2) by striking ‘‘special trial judges of the court’’ 

21 in subsection (b) and inserting ‘‘magistrate judges of 

22 the Tax Court’’, and 

23 (3) by striking ‘‘special trial judge’’ in sub24 sections (c) and (d) and inserting ‘‘magistrate judge 

25 of the Tax Court’’. 
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1 (b) CONFORMING AMENDMENTS.— 

2 (1) The heading of section 7443A is amended by 

3 striking ‘‘SPECIAL TRIAL JUDGES’’ and inserting 

4 ‘‘MAGISTRATE JUDGES OF THE TAX COURT’’. 

5 (2) The heading of section 7443A(b) is amended 

6 by striking ‘‘SPECIAL TRIAL JUDGES’’ and inserting 

7 ‘‘MAGISTRATE JUDGES OF THE TAX COURT’’. 

8 (3) The item relating to section 7443A in the 

9 table of sections for part I of subchapter C of chapter 

10 76 is amended to read as follows: 

‘‘Sec. 7443A. Magistrate judges of the Tax Court.’’. 

11 (4) The heading of section 7448 is amended by 

12 striking ‘‘SPECIAL TRIAL JUDGES’’ and inserting 

13 ‘‘MAGISTRATE JUDGES OF THE TAX COURT’’. 

14 (5) Section 7448 is amended— 

15 (A) by striking ‘‘special trial judge’s’’ each 

16 place it appears in subsections (a)(6), (c)(1), (d), 

17 and (m)(1) and inserting ‘‘magistrate judge of 

18 the Tax Court’s’’, and 

19 (B) by striking ‘‘special trial judge’’ each 

20 place it appears other than in subsection (n) and 

21 inserting ‘‘magistrate judge of the Tax Court’’. 

22 (6) Section 7448(n) is amended— 

23 (A) by striking ‘‘special trial judge which 

24 are allowable’’ and inserting ‘‘magistrate judge 

25 of the Tax Court which are allowable’’, and 
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1 (B) by striking ‘‘special trial judge of the 

2 Tax Court’’ both places it appears and inserting 

3 ‘‘magistrate judge of the Tax Court’’. 

4 (7) The heading of section 7448(b)(2) is amended 

5 by striking ‘‘SPECIAL TRIAL JUDGES’’ and inserting 

6 ‘‘MAGISTRATE JUDGES OF THE TAX COURT’’. 

7 (8) The item relating to section 7448 in the table 

8 of sections for part I of subchapter C of chapter 76 

9 is amended to read as follows: 

‘‘Sec. 7448. Annuities to surviving spouses and dependent children of judges and 

magistrate judges of the Tax Court.’’. 

10 (9) Section 7456(a) is amended— 

11 (A) by striking ‘‘special trial judge’’ each 

12 place it appears and inserting ‘‘magistrate 

13 judge’’, and 

14 (B) by striking ‘‘(or by the clerk’’ and in15 serting ‘‘of the Tax Court (or by the clerk’’. 

16 (10) Section 7466(a) is amended by striking 

17 ‘‘special trial judge’’ and inserting ‘‘magistrate 

18 judge’’. 

19 (11) Section 7470A is amended by striking ‘‘spe20 cial trial judges’’ both places it appears in subsections 

21 (a) and (b) and inserting ‘‘magistrate judges’’. 

22 (12) Section 7471(a)(2)(A) is amended by strik23 ing ‘‘special trial judges’’ and inserting ‘‘magistrate 

24 judges’’. 
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1 (13) Section 7471(c) is amended— 

2 (A) by striking ‘‘SPECIAL TRIAL JUDGES’’ 

3 in the heading and inserting ‘‘MAGISTRATE

4 JUDGES OF THE TAX COURT’’, and 

5 (B) by striking ‘‘special trial judges’’ and 

6 inserting ‘‘magistrate judges’’. 

7 SEC. 3304. REPEAL OF DEADWOOD RELATED TO BOARD OF 

8 TAX APPEALS. 

9 (a) Section 7459, as amended by this Act, is amended 

10 by striking subsection (f) and by redesignating subsections 

11 (g) and (h) as subsections (f) and (g), respectively. 

12 (b) Section 7447(a)(3) is amended to read as follows: 

13 ‘‘(3) In any determination of length of service as 

14 judge or as a judge of the Tax Court of the United 

15 States there shall be included all periods (whether or 

16 not consecutive) during which an individual served as 

17 judge.’’. 

Attest: 

Clerk. 

115TH CONGRESS 

2D SESSION H.R. 88 

HOUSE AMENDMENT TO 

SENATE AMENDMENT