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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 661 Reported in Senate (RS)]

                                                        Calendar No. 96
109th CONGRESS
  1st Session
                                 S. 661

                          [Report No. 109-64]

     To amend the Internal Revenue Code of 1986 to provide for the 
 modernization of the United States Tax Court, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             March 17, 2005

  Mr. Hatch (for himself, Mr. Baucus, Mr. Grassley, and Mrs. Lincoln) 
introduced the following bill; which was read twice and referred to the 
                          Committee on Finance

                             April 28, 2005

              Reported by Mr. Grassley, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL

 
     To amend the Internal Revenue Code of 1986 to provide for the 
 modernization of the United States Tax Court, and for other purposes.

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

<DELETED>SECTION 1. SHORT TITLE; ETC.</DELETED>

<DELETED>    (a) Short Title.--This Act may be cited as the ``United 
States Tax Court Modernization Act''.</DELETED>
<DELETED>    (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this Act an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of the Internal Revenue Code of 1986.</DELETED>
<DELETED>    (c) Table of Contents.--The table of contents for this Act 
is as follows:</DELETED>

<DELETED>Sec. 1. Short title; etc.
                 <DELETED>TITLE I--TAX COURT PROCEDURE

<DELETED>Sec. 101. Jurisdiction of Tax Court over collection due 
                            process cases.
<DELETED>Sec. 102. Authority for special trial judges to hear and 
                            decide certain employment status cases.
<DELETED>Sec. 103. Confirmation of authority of Tax Court to apply 
                            doctrine of equitable recoupment.
<DELETED>Sec. 104. Tax Court filing fee in all cases commenced by 
                            filing petition.
<DELETED>Sec. 105. Amendments to appoint employees.
<DELETED>Sec. 106. Expanded use of Tax Court practice fee for pro se 
                            taxpayers.
         <DELETED>TITLE II--TAX COURT PENSION AND COMPENSATION

<DELETED>Sec. 201. Annuities for survivors of Tax Court judges who are 
                            assassinated.
<DELETED>Sec. 202. Cost-of-living adjustments for Tax Court judicial 
                            survivor annuities.
<DELETED>Sec. 203. Life insurance coverage for Tax Court judges.
<DELETED>Sec. 204. Cost of life insurance coverage for Tax Court judges 
                            age 65 or over.
<DELETED>Sec. 205. Modification of timing of lump-sum payment of 
                            judges' accrued annual leave.
<DELETED>Sec. 206. Participation of Tax Court judges in the Thrift 
                            Savings Plan.
<DELETED>Sec. 207. Exemption of teaching compensation of retired judges 
                            from limitation on outside earned income.
<DELETED>Sec. 208. General provisions relating to magistrate judges of 
                            the Tax Court.
<DELETED>Sec. 209. Annuities to surviving spouses and dependent 
                            children of magistrate judges of the Tax 
                            Court.
<DELETED>Sec. 210. Retirement and annuity program.
<DELETED>Sec. 211. Incumbent magistrate judges of the Tax Court.
<DELETED>Sec. 212. Provisions for recall.
<DELETED>Sec. 213. Effective date.

            <DELETED>TITLE I--TAX COURT PROCEDURE</DELETED>

<DELETED>SEC. 101. JURISDICTION OF TAX COURT OVER COLLECTION DUE 
              PROCESS CASES.</DELETED>

<DELETED>    (a) In General.--Paragraph (1) of section 6330(d) 
(relating to proceeding after hearing) is amended to read as 
follows:</DELETED>
        <DELETED>    ``(1) Judicial review of determination.--The 
        person may, within 30 days of a determination under this 
        section, appeal such determination to the Tax Court (and the 
        Tax Court shall have jurisdiction with respect to such 
        matter).''.</DELETED>
<DELETED>    (b) Effective Date.--The amendment made by this section 
shall apply to determinations made after the date which is 60 days 
after the date of the enactment of this Act.</DELETED>

<DELETED>SEC. 102. AUTHORITY FOR SPECIAL TRIAL JUDGES TO HEAR AND 
              DECIDE CERTAIN EMPLOYMENT STATUS CASES.</DELETED>

<DELETED>    (a) In General.--Section 7443A(b) (relating to proceedings 
which may be assigned to special trial judges) is amended by striking 
``and'' at the end of paragraph (4), by redesignating paragraph (5) as 
paragraph (6), and by inserting after paragraph (4) the following new 
paragraph:</DELETED>
        <DELETED>    ``(5) any proceeding under section 7436(c), 
        and''.</DELETED>
<DELETED>    (b) Conforming Amendment.--Section 7443A(c) is amended by 
striking ``or (4)'' and inserting ``(4), or (5)''.</DELETED>
<DELETED>    (c) Effective Date.--The amendments made by this section 
shall apply to any proceeding under section 7436(c) of the Internal 
Revenue Code of 1986 with respect to which a decision has not become 
final (as determined under section 7481 of such Code) before the date 
of the enactment of this Act.</DELETED>

<DELETED>SEC. 103. CONFIRMATION OF AUTHORITY OF TAX COURT TO APPLY 
              DOCTRINE OF EQUITABLE RECOUPMENT.</DELETED>

<DELETED>    (a) Confirmation of Authority of Tax Court To Apply 
Doctrine of Equitable Recoupment.--Section 6214(b) (relating to 
jurisdiction over other years and quarters) is amended by adding at the 
end the following new sentence: ``Notwithstanding the preceding 
sentence, the Tax Court may apply the doctrine of equitable recoupment 
to the same extent that it is available in civil tax cases before the 
district courts of the United States and the United States Court of 
Federal Claims.''.</DELETED>
<DELETED>    (b) Effective Date.--The amendment made by this section 
shall apply to any action or proceeding in the United States Tax Court 
with respect to which a decision has not become final (as determined 
under section 7481 of the Internal Revenue Code of 1986) as of the date 
of the enactment of this Act.</DELETED>

<DELETED>SEC. 104. TAX COURT FILING FEE IN ALL CASES COMMENCED BY 
              FILING PETITION.</DELETED>

<DELETED>    (a) In General.--Section 7451 (relating to fee for filing 
a Tax Court petition) is amended by striking all that follows 
``petition'' and inserting a period.</DELETED>
<DELETED>    (b) Effective Date.--The amendment made by this section 
shall take effect on the date of the enactment of this Act.</DELETED>

<DELETED>SEC. 105. AMENDMENTS TO APPOINT EMPLOYEES.</DELETED>

<DELETED>    (a) In General.--Subsection (a) of section 7471 (relating 
to Tax Court employees) is amended to read as follows:</DELETED>
<DELETED>    ``(a) Appointment and Compensation.--</DELETED>
        <DELETED>    ``(1) Clerk.--The Tax Court may appoint a clerk 
        without regard to the provisions of title 5, United States 
        Code, governing appointments in the competitive service. The 
        clerk shall serve at the pleasure of the Tax Court.</DELETED>
        <DELETED>    ``(2) Law clerks and secretaries.--</DELETED>
                <DELETED>    ``(A) In general.--The judges and special 
                trial judges of the Tax Court may appoint law clerks 
                and secretaries, in such numbers as the Tax Court may 
                approve, without regard to the provisions of title 5, 
                United States Code, governing appointments in the 
                competitive service. Any such law clerk or secretary 
                shall serve at the pleasure of the appointing 
                judge.</DELETED>
                <DELETED>    ``(B) Exemption from federal leave 
                provisions.--A law clerk appointed under this 
                subsection shall be exempt from the provisions of 
                subchapter I of chapter 63 of title 5, United States 
                Code. Any unused sick leave or annual leave standing to 
                the employee's credit as of the effective date of this 
                subsection shall remain credited to the employee and 
                shall be available to the employee upon separation from 
                the Federal Government.</DELETED>
        <DELETED>    ``(3) Other employees.--The Tax Court may appoint 
        necessary employees without regard to the provisions of title 
        5, United States Code, governing appointments in the 
        competitive service. Such employees shall be subject to removal 
        by the Tax Court.</DELETED>
        <DELETED>    ``(4) Pay.--The Tax Court may fix and adjust the 
        compensation for the clerk and other employees of the Tax Court 
        without regard to the provisions of chapter 51, subchapter III 
        of chapter 53, or section 5373 of title 5, United States Code. 
        To the maximum extent feasible, the Tax Court shall compensate 
        employees at rates consistent with those for employees holding 
        comparable positions in the judicial branch.</DELETED>
        <DELETED>    ``(5) Programs.--The Tax Court may establish 
        programs for employee evaluations, incentive awards, flexible 
        work schedules, premium pay, and resolution of employee 
        grievances.</DELETED>
        <DELETED>    ``(6) Discrimination prohibited.--The Tax Court 
        shall--</DELETED>
                <DELETED>    ``(A) prohibit discrimination on the basis 
                of race, color, religion, age, sex, national origin, 
                political affiliation, marital status, or handicapping 
                condition; and</DELETED>
                <DELETED>    ``(B) promulgate procedures for resolving 
                complaints of discrimination by employees and 
                applicants for employment.</DELETED>
        <DELETED>    ``(7) Experts and consultants.--The Tax Court may 
        procure the services of experts and consultants under section 
        3109 of title 5, United States Code.</DELETED>
        <DELETED>    ``(8) Rights to certain appeals reserved.--
        Notwithstanding any other provision of law, an individual who 
        is an employee of the Tax Court on the day before the effective 
        date of this subsection and who, as of that day, was entitled 
        to--</DELETED>
                <DELETED>    ``(A) appeal a reduction in grade or 
                removal to the Merit Systems Protection Board under 
                chapter 43 of title 5, United States Code,</DELETED>
                <DELETED>    ``(B) appeal an adverse action to the 
                Merit Systems Protection Board under chapter 75 of 
                title 5, United States Code,</DELETED>
                <DELETED>    ``(C) appeal a prohibited personnel 
                practice described under section 2302(b) of title 5, 
                United States Code, to the Merit Systems Protection 
                Board under chapter 77 of that title,</DELETED>
                <DELETED>    ``(D) make an allegation of a prohibited 
                personnel practice described under section 2302(b) of 
                title 5, United States Code, with the Office of Special 
                Counsel under chapter 12 of that title for action in 
                accordance with that chapter, or</DELETED>
                <DELETED>    ``(E) file an appeal with the Equal 
                Employment Opportunity Commission under part 1614 of 
                title 29 of the Code of Federal Regulations,</DELETED>
        <DELETED>shall be entitled to file such appeal or make such an 
        allegation so long as the individual remains an employee of the 
        Tax Court.</DELETED>
        <DELETED>    ``(9) Competitive status.--Notwithstanding any 
        other provision of law, any employee of the Tax Court who has 
        completed at least 1 year of continuous service under a non-
        temporary appointment with the Tax Court acquires a competitive 
        status for appointment to any position in the competitive 
        service for which the employee possesses the required 
        qualifications.</DELETED>
        <DELETED>    ``(10) Merit system principles; prohibited 
        personnel practices; and preference eligibles.--Any personnel 
        management system of the Tax Court shall--</DELETED>
                <DELETED>    ``(A) include the principles set forth in 
                section 2301(b) of title 5, United States 
                Code;</DELETED>
                <DELETED>    ``(B) prohibit personnel practices 
                prohibited under section 2302(b) of title 5, United 
                States Code; and</DELETED>
                <DELETED>    ``(C) in the case of any individual who 
                would be a preference eligible in the executive branch, 
                the Tax Court will provide preference for that 
                individual in a manner and to an extent consistent with 
                preference accorded to preference eligibles in the 
                executive branch.''.</DELETED>
<DELETED>    (b) Effective Date.--The amendments made by this section 
shall take effect on the date the United States Tax Court adopts a 
personnel management system after the date of the enactment of this 
Act.</DELETED>

<DELETED>SEC. 106. EXPANDED USE OF TAX COURT PRACTICE FEE FOR PRO SE 
              TAXPAYERS.</DELETED>

<DELETED>    (a) In General.--Section 7475(b) (relating to use of fees) 
is amended by inserting before the period at the end ``and to provide 
services to pro se taxpayers''.</DELETED>
<DELETED>    (b) Effective Date.--The amendment made by this section 
shall take effect on the date of the enactment of this Act.</DELETED>

    <DELETED>TITLE II--TAX COURT PENSION AND COMPENSATION</DELETED>

<DELETED>SEC. 201. ANNUITIES FOR SURVIVORS OF TAX COURT JUDGES WHO ARE 
              ASSASSINATED.</DELETED>

<DELETED>    (a) Eligibility in Case of Death by Assassination.--
Subsection (h) of section 7448 (relating to annuities to surviving 
spouses and dependent children of judges) is amended to read as 
follows:</DELETED>
<DELETED>    ``(h) Entitlement to Annuity.--</DELETED>
        <DELETED>    ``(1) In general.--</DELETED>
                <DELETED>    ``(A) Annuity to surviving spouse.--If a 
                judge described in paragraph (2) is survived by a 
                surviving spouse but not by a dependent child, there 
                shall be paid to such surviving spouse an annuity 
                beginning with the day of the death of the judge or 
                following the surviving spouse's attainment of the age 
                of 50 years, whichever is the later, in an amount 
                computed as provided in subsection (m).</DELETED>
                <DELETED>    ``(B) Annuity to child.--If such a judge 
                is survived by a surviving spouse and a dependent child 
                or children, there shall be paid to such surviving 
                spouse an immediate annuity in an amount computed as 
                provided in subsection (m), and there shall also be 
                paid to or on behalf of each such child an immediate 
                annuity equal to the lesser of--</DELETED>
                        <DELETED>    ``(i) 10 percent of the average 
                        annual salary of such judge (determined in 
                        accordance with subsection (m)), or</DELETED>
                        <DELETED>    ``(ii) 20 percent of such average 
                        annual salary, divided by the number of such 
                        children.</DELETED>
                <DELETED>    ``(C) Annuity to surviving dependent 
                children.--If such a judge leaves no surviving spouse 
                but leaves a surviving dependent child or children, 
                there shall be paid to or on behalf of each such child 
                an immediate annuity equal to the lesser of--</DELETED>
                        <DELETED>    ``(i) 20 percent of the average 
                        annual salary of such judge (determined in 
                        accordance with subsection (m)), or</DELETED>
                        <DELETED>    ``(ii) 40 percent of such average 
                        annual salary, divided by the number of such 
                        children.</DELETED>
        <DELETED>    ``(2) Covered judges.--Paragraph (1) applies to 
        any judge electing under subsection (b)--</DELETED>
                <DELETED>    ``(A) who dies while a judge after having 
                rendered at least 5 years of civilian service computed 
                as prescribed in subsection (n), for the last 5 years 
                of which the salary deductions provided for by 
                subsection (c)(1) or the deposits required by 
                subsection (d) have actually been made or the salary 
                deductions required by the civil service retirement 
                laws have actually been made, or</DELETED>
                <DELETED>    ``(B) who dies by assassination after 
                having rendered less than 5 years of civilian service 
                computed as prescribed in subsection (n) if, for the 
                period of such service, the salary deductions provided 
                for by subsection (c)(1) or the deposits required by 
                subsection (d) have actually been made.</DELETED>
        <DELETED>    ``(3) Termination of annuity.--</DELETED>
                <DELETED>    ``(A) In the case of a surviving spouse.--
                The annuity payable to a surviving spouse under this 
                subsection shall be terminable upon such surviving 
                spouse's death or such surviving spouse's remarriage 
                before attaining age 55.</DELETED>
                <DELETED>    ``(B) In the case of a child.--The annuity 
                payable to a child under this subsection shall be 
                terminable upon (i) the child attaining the age of 18 
                years, (ii) the child's marriage, or (iii) the child's 
                death, whichever first occurs, except that if such 
                child is incapable of self-support by reason of mental 
                or physical disability the child's annuity shall be 
                terminable only upon death, marriage, or recovery from 
                such disability.</DELETED>
                <DELETED>    ``(C) In the case of a dependent child 
                after death of surviving spouse.--In case of the death 
                of a surviving spouse of a judge leaving a dependent 
                child or children of the judge surviving such spouse, 
                the annuity of such child or children shall be 
                recomputed and paid as provided in paragraph 
                (1)(C).</DELETED>
                <DELETED>    ``(D) Recomputation.--In any case in which 
                the annuity of a dependent child is terminated under 
                this subsection, the annuities of any remaining 
                dependent child or children, based upon the service of 
                the same judge, shall be recomputed and paid as though 
                the child whose annuity was so terminated had not 
                survived such judge.</DELETED>
        <DELETED>    ``(4) Special rule for assassinated judges.--In 
        the case of a survivor or survivors of a judge described in 
        paragraph (2)(B), there shall be deducted from the annuities 
        otherwise payable under this section an amount equal to--
        </DELETED>
                <DELETED>    ``(A) the amount of salary deductions 
                provided for by subsection (c)(1) that would have been 
                made if such deductions had been made for 5 years of 
                civilian service computed as prescribed in subsection 
                (n) before the judge's death, reduced by</DELETED>
                <DELETED>    ``(B) the amount of such salary deductions 
                that were actually made before the date of the judge's 
                death.''.</DELETED>
<DELETED>    (b) Definition of Assassination.--Section 7448(a) 
(relating to definitions) is amended by adding at the end the following 
new paragraph:</DELETED>
        <DELETED>    ``(8) The terms `assassinated' and `assassination' 
        mean the killing of a judge that is motivated by the 
        performance by that judge of his or her official 
        duties.''.</DELETED>
<DELETED>    (c) Determination of Assassination.--Subsection (i) of 
section 7448 is amended--</DELETED>
        <DELETED>    (1) by striking the subsection heading and 
        inserting the following:</DELETED>
<DELETED>    ``(i) Determinations by Chief Judge.--</DELETED>
        <DELETED>    ``(1) Dependency and disability.--'',</DELETED>
        <DELETED>    (2) by moving the text 2 ems to the right, 
        and</DELETED>
        <DELETED>    (3) by adding at the end the following new 
        paragraph:</DELETED>
        <DELETED>    ``(2) Assassination.--The chief judge shall 
        determine whether the killing of a judge was an assassination, 
        subject to review only by the Tax Court. The head of any 
        Federal agency that investigates the killing of a judge shall 
        provide information to the chief judge that would assist the 
        chief judge in making such a determination.''.</DELETED>
<DELETED>    (d) Computation of Annuities.--Subsection (m) of section 
7448 is amended--</DELETED>
        <DELETED>    (1) by striking the subsection heading and 
        inserting the following:</DELETED>
<DELETED>    ``(m) Computation of Annuities.--</DELETED>
        <DELETED>    ``(1) In general.--'',</DELETED>
        <DELETED>    (2) by moving the text 2 ems to the right, 
        and</DELETED>
        <DELETED>    (3) by adding at the end the following new 
        paragraph:</DELETED>
        <DELETED>    ``(2) Assassinated judges.--In the case of a judge 
        who is assassinated and who has served less than 3 years, the 
        annuity of the surviving spouse of such judge shall be based 
        upon the average annual salary received by such judge for 
        judicial service.''.</DELETED>
<DELETED>    (e) Other Benefits.--Section 7448 is amended by adding at 
the end the following:</DELETED>
<DELETED>    ``(u) Other Benefits.--In the case of a judge who is 
assassinated, an annuity shall be paid under this section 
notwithstanding a survivor's eligibility for or receipt of benefits 
under chapter 81 of title 5, United States Code, except that the 
annuity for which a surviving spouse is eligible under this section 
shall be reduced to the extent that the total benefits paid under this 
section and chapter 81 of that title for any year would exceed the 
current salary for that year of the office of the judge.''.</DELETED>

<DELETED>SEC. 202. COST-OF-LIVING ADJUSTMENTS FOR TAX COURT JUDICIAL 
              SURVIVOR ANNUITIES.</DELETED>

<DELETED>    (a) In General.--Subsection (s) of section 7448 (relating 
to annuities to surviving spouses and dependent children of judges) is 
amended to read as follows:</DELETED>
<DELETED>    ``(s) Increases in Survivor Annuities.--Each time that an 
increase is made under section 8340(b) of title 5, United States Code, 
in annuities payable under subchapter III of chapter 83 of that title, 
each annuity payable from the survivors annuity fund under this section 
shall be increased at the same time by the same percentage by which 
annuities are increased under such section 8340(b).''.</DELETED>
<DELETED>    (b) Effective Date.--The amendments made by this section 
shall apply with respect to increases made under section 8340(b) of 
title 5, United States Code, in annuities payable under subchapter III 
of chapter 83 of that title, taking effect after the date of the 
enactment of this Act.</DELETED>

<DELETED>SEC. 203. LIFE INSURANCE COVERAGE FOR TAX COURT 
              JUDGES.</DELETED>

<DELETED>    (a) In General.--Section 7447 (relating to retirement of 
judges) is amended by adding at the end the following new 
subsection:</DELETED>
        <DELETED>    ``(j) Life Insurance Coverage.--For purposes of 
        chapter 87 of title 5, United States Code (relating to life 
        insurance), any individual who is serving as a judge of the Tax 
        Court or who is retired under this section is deemed to be an 
        employee who is continuing in active employment.''.</DELETED>
<DELETED>    (b) Effective Date.--The amendment made by this section 
shall apply to any individual serving as a judge of the United States 
Tax Court or to any retired judge of the United States Tax Court on the 
date of the enactment of this Act.</DELETED>

<DELETED>SEC. 204. COST OF LIFE INSURANCE COVERAGE FOR TAX COURT JUDGES 
              AGE 65 OR OVER.</DELETED>

<DELETED>    Section 7472 (relating to expenditures) is amended by 
inserting after the first sentence the following new sentence: 
``Notwithstanding any other provision of law, the Tax Court is 
authorized to pay on behalf of its judges, age 65 or over, any increase 
in the cost of Federal Employees' Group Life Insurance imposed after 
April 24, 1999, including any expenses generated by such payments, as 
authorized by the chief judge in a manner consistent with such payments 
authorized by the Judicial Conference of the United States pursuant to 
section 604(a)(5) of title 28, United States Code.''.</DELETED>

<DELETED>SEC. 205. MODIFICATION OF TIMING OF LUMP-SUM PAYMENT OF 
              JUDGES' ACCRUED ANNUAL LEAVE.</DELETED>

<DELETED>    (a) In General.--Section 7443 (relating to membership of 
the Tax Court) is amended by adding at the end the following new 
subsection:</DELETED>
<DELETED>    ``(h) Lump-Sum Payment of Judges' Accrued Annual Leave.--
Notwithstanding the provisions of sections 5551 and 6301 of title 5, 
United States Code, when an individual subject to the leave system 
provided in chapter 63 of that title is appointed by the President to 
be a judge of the Tax Court, the individual shall be entitled to 
receive, upon appointment to the Tax Court, a lump-sum payment from the 
Tax Court of the accumulated and accrued current annual leave standing 
to the individual's credit as certified by the agency from which the 
individual resigned.''.</DELETED>
<DELETED>    (b) Effective Date.--The amendment made by this section 
shall apply to any judge of the United States Tax Court who has an 
outstanding leave balance on the date of the enactment of this Act and 
to any individual appointed by the President to serve as a judge of the 
United States Tax Court after such date.</DELETED>

<DELETED>SEC. 206. PARTICIPATION OF TAX COURT JUDGES IN THE THRIFT 
              SAVINGS PLAN.</DELETED>

<DELETED>    (a) In General.--Section 7447 (relating to retirement of 
judges), as amended by this Act, is amended by adding at the end the 
following new subsection:</DELETED>
<DELETED>    ``(k) Thrift Savings Plan.--</DELETED>
        <DELETED>    ``(1) Election to contribute.--</DELETED>
                <DELETED>    ``(A) In general.--A judge of the Tax 
                Court may elect to contribute to the Thrift Savings 
                Fund established by section 8437 of title 5, United 
                States Code.</DELETED>
                <DELETED>    ``(B) Period of election.--An election may 
                be made under this paragraph only during a period 
provided under section 8432(b) of title 5, United States Code, for 
individuals subject to chapter 84 of such title.</DELETED>
        <DELETED>    ``(2) Applicability of title 5 provisions.--Except 
        as otherwise provided in this subsection, the provisions of 
        subchapters III and VII of chapter 84 of title 5, United States 
        Code, shall apply with respect to a judge who makes an election 
        under paragraph (1).</DELETED>
        <DELETED>    ``(3) Special rules.--</DELETED>
                <DELETED>    ``(A) Amount contributed.--The amount 
                contributed by a judge to the Thrift Savings Fund in 
                any pay period shall not exceed the maximum percentage 
                of such judge's basic pay for such period as allowable 
                under section 8440f of title 5, United States Code. 
                Basic pay does not include any retired pay paid 
                pursuant to this section.</DELETED>
                <DELETED>    ``(B) Contributions for benefit of 
                judge.--No contributions may be made for the benefit of 
                a judge under section 8432(c) of title 5, United States 
                Code.</DELETED>
                <DELETED>    ``(C) Applicability of section 8433(b) of 
                title 5 whether or not judge retires.--Section 8433(b) 
                of title 5, United States Code, applies with respect to 
                a judge who makes an election under paragraph (1) and 
                who either--</DELETED>
                        <DELETED>    ``(i) retires under subsection 
                        (b), or</DELETED>
                        <DELETED>    ``(ii) ceases to serve as a judge 
                        of the Tax Court but does not retire under 
                        subsection (b).</DELETED>
                <DELETED>Retirement under subsection (b) is a 
                separation from service for purposes of subchapters III 
                and VII of chapter 84 of that title.</DELETED>
                <DELETED>    ``(D) Applicability of section 8351(b)(5) 
                of title 5.--The provisions of section 8351(b)(5) of 
                title 5, United States Code, shall apply with respect 
                to a judge who makes an election under paragraph 
                (1).</DELETED>
                <DELETED>    ``(E) Exception.--Notwithstanding 
                subparagraph (C), if any judge retires under this 
                section, or resigns without having met the age and 
                service requirements set forth under subsection (b)(2), 
                and such judge's nonforfeitable account balance is less 
                than an amount that the Executive Director of the 
                Office of Personnel Management prescribes by 
                regulation, the Executive Director shall pay the 
                nonforfeitable account balance to the participant in a 
                single payment.''.</DELETED>
<DELETED>    (b) Effective Date.--The amendment made by this section 
shall take effect on the date of the enactment of this Act, except that 
United States Tax Court judges may only begin to participate in the 
Thrift Savings Plan at the next open season beginning after such 
date.</DELETED>

<DELETED>SEC. 207. EXEMPTION OF TEACHING COMPENSATION OF RETIRED JUDGES 
              FROM LIMITATION ON OUTSIDE EARNED INCOME.</DELETED>

<DELETED>    (a) In General.--Section 7447 (relating to retirement of 
judges), as amended by this Act, is amended by adding at the end the 
following new subsection:</DELETED>
<DELETED>    ``(l) Teaching Compensation of Retired Judges.--For 
purposes of the limitation under section 501(a) of the Ethics in 
Government Act of 1978 (5 U.S.C. App.), any compensation for teaching 
approved under section 502(a)(5) of such Act shall not be treated as 
outside earned income when received by a judge of the Tax Court who has 
retired under subsection (b) for teaching performed during any calendar 
year for which such a judge has met the requirements of subsection (c), 
as certified by the chief judge of the Tax Court.''.</DELETED>
<DELETED>    (b) Effective Date.--The amendment made by this section 
shall apply to any individual serving as a retired judge of the United 
States Tax Court on or after the date of the enactment of this 
Act.</DELETED>

<DELETED>SEC. 208. GENERAL PROVISIONS RELATING TO MAGISTRATE JUDGES OF 
              THE TAX COURT.</DELETED>

<DELETED>    (a) Title of Special Trial Judge Changed to Magistrate 
Judge of the Tax Court.--The heading of section 7443A is amended to 
read as follows:</DELETED>

<DELETED>``SEC. 7443A. MAGISTRATE JUDGES OF THE TAX COURT.''.</DELETED>

<DELETED>    (b) Appointment, Tenure, and Removal.--Subsection (a) of 
section 7443A is amended to read as follows:</DELETED>
<DELETED>    ``(a) Appointment, Tenure, and Removal.--</DELETED>
        <DELETED>    ``(1) Appointment.--The chief judge may, from time 
        to time, appoint and reappoint magistrate judges of the Tax 
        Court for a term of 8 years. The magistrate judges of the Tax 
        Court shall proceed under such rules as may be promulgated by 
        the Tax Court.</DELETED>
        <DELETED>    ``(2) Removal.--Removal of a magistrate judge of 
        the Tax Court during the term for which he or she is appointed 
        shall be only for incompetency, misconduct, neglect of duty, or 
        physical or mental disability, but the office of a magistrate 
        judge of the Tax Court shall be terminated if the judges of the 
        Tax Court determine that the services performed by the 
        magistrate judge of the Tax Court are no longer needed. Removal 
        shall not occur unless a majority of all the judges of the Tax 
        Court concur in the order of removal. Before any order of 
        removal shall be entered, a full specification of the charges 
        shall be furnished to the magistrate judge of the Tax Court, 
        and he or she shall be accorded by the judges of the Tax Court 
        an opportunity to be heard on the charges.''.</DELETED>
<DELETED>    (c) Salary.--Section 7443A(d) (relating to salary) is 
amended by striking ``90'' and inserting ``92''.</DELETED>
<DELETED>    (d) Exemption From Federal Leave Provisions.--Section 
7443A is amended by adding at the end the following new 
subsection:</DELETED>
<DELETED>    ``(f) Exemption From Federal Leave Provisions.--</DELETED>
        <DELETED>    ``(1) In general.--A magistrate judge of the Tax 
        Court appointed under this section shall be exempt from the 
        provisions of subchapter I of chapter 63 of title 5, United 
        States Code.</DELETED>
        <DELETED>    ``(2) Treatment of unused leave.--</DELETED>
                <DELETED>    ``(A) After service as magistrate judge.--
                If an individual who is exempted under paragraph (1) 
                from the subchapter referred to in such paragraph was 
                previously subject to such subchapter and, without a 
                break in service, again becomes subject to such 
subchapter on completion of the individual's service as a magistrate 
judge, the unused annual leave and sick leave standing to the 
individual's credit when such individual was exempted from this 
subchapter is deemed to have remained to the individual's 
credit.</DELETED>
                <DELETED>    ``(B) Computation of annuity.--In 
                computing an annuity under section 8339 of title 5, 
                United States Code, the total service of an individual 
                specified in subparagraph (A) who retires on an 
                immediate annuity or dies leaving a survivor or 
                survivors entitled to an annuity includes, without 
                regard to the limitations imposed by subsection (f) of 
                such section 8339, the days of unused sick leave 
                standing to the individual's credit when such 
                individual was exempted from subchapter I of chapter 63 
                of title 5, United States Code, except that these days 
                will not be counted in determining average pay or 
                annuity eligibility.</DELETED>
                <DELETED>    ``(C) Lump sum payment.--Any accumulated 
                and current accrued annual leave or vacation balances 
                credited to a magistrate judge as of the date of the 
                enactment of this subsection shall be paid in a lump 
                sum at the time of separation from service pursuant to 
                the provisions and restrictions set forth in section 
                5551 of title 5, United States Code, and related 
                provisions referred to in such section.''.</DELETED>
<DELETED>    (e) Conforming Amendments.--</DELETED>
        <DELETED>    (1) The heading of subsection (b) of section 7443A 
        is amended by striking ``Special Trial Judges'' and inserting 
        ``Magistrate Judges of the Tax Court''.</DELETED>
        <DELETED>    (2) Section 7443A(b) is amended by striking 
        ``special trial judges of the court'' and inserting 
        ``magistrate judges of the Tax Court''.</DELETED>
        <DELETED>    (3) Subsections (c) and (d) of section 7443A are 
        amended by striking ``special trial judge'' and inserting 
        ``magistrate judge of the Tax Court'' each place it 
        appears.</DELETED>
        <DELETED>    (4) Section 7443A(e) is amended by striking 
        ``special trial judges'' and inserting ``magistrate judges of 
        the Tax Court''.</DELETED>
        <DELETED>    (5) Section 7456(a) is amended by striking 
        ``special trial judge'' each place it appears and inserting 
        ``magistrate judge''.</DELETED>
        <DELETED>    (6) Subsection (c) of section 7471 is amended--
        </DELETED>
                <DELETED>    (A) by striking the subsection heading and 
                inserting ``Magistrate Judges of the Tax Court.--'', 
                and</DELETED>
                <DELETED>    (B) by striking ``special trial judges'' 
                and inserting ``magistrate judges''.</DELETED>

<DELETED>SEC. 209. ANNUITIES TO SURVIVING SPOUSES AND DEPENDENT 
              CHILDREN OF MAGISTRATE JUDGES OF THE TAX COURT.</DELETED>

<DELETED>    (a) Definitions.--Section 7448(a) (relating to 
definitions), as amended by this Act, is amended by redesignating 
paragraphs (5), (6), (7), and (8) as paragraphs (7), (8), (9), and 
(10), respectively, and by inserting after paragraph (4) the following 
new paragraphs:</DELETED>
        <DELETED>    ``(5) The term `magistrate judge' means a judicial 
        officer appointed pursuant to section 7443A, including any 
        individual receiving an annuity under section 7443B, or 
        chapters 83 or 84, as the case may be, of title 5, United 
        States Code, whether or not performing judicial duties under 
        section 7443C.</DELETED>
        <DELETED>    ``(6) The term `magistrate judge's salary' means 
        the salary of a magistrate judge received under section 
        7443A(d), any amount received as an annuity under section 
        7443B, or chapters 83 or 84, as the case may be, of title 5, 
        United States Code, and compensation received under section 
        7443C.''.</DELETED>
<DELETED>    (b) Election.--Subsection (b) of section 7448 (relating to 
annuities to surviving spouses and dependent children of judges) is 
amended--</DELETED>
        <DELETED>    (1) by striking the subsection heading and 
        inserting the following:</DELETED>
<DELETED>    ``(b) Election.--</DELETED>
        <DELETED>    ``(1) Judges.--'',</DELETED>
        <DELETED>    (2) by moving the text 2 ems to the right, 
        and</DELETED>
        <DELETED>    (3) by adding at the end the following new 
        paragraph:</DELETED>
        <DELETED>    ``(2) Magistrate judges.--Any magistrate judge may 
        by written election filed with the chief judge bring himself or 
        herself within the purview of this section. Such election shall 
        be filed not later than the later of 6 months after--</DELETED>
                <DELETED>    ``(A) 6 months after the date of the 
                enactment of this paragraph,</DELETED>
                <DELETED>    ``(B) the date the judge takes office, 
                or</DELETED>
                <DELETED>    ``(C) the date the judge 
                marries.''.</DELETED>
<DELETED>    (c) Conforming Amendments.--</DELETED>
        <DELETED>    (1) The heading of section 7448 is amended by 
        inserting ``and magistrate judges'' after ``judges''.</DELETED>
        <DELETED>    (2) The item relating to section 7448 in the table 
        of sections for part I of subchapter C of chapter 76 is amended 
        by inserting ``and magistrate judges'' after 
        ``judges''.</DELETED>
        <DELETED>    (3) Subsections (c)(1), (d), (f), (g), (h), (j), 
        (m), (n), and (u) of section 7448, as amended by this Act, are 
        each amended--</DELETED>
                <DELETED>    (A) by inserting ``or magistrate judge'' 
                after ``judge'' each place it appears other than in the 
                phrase ``chief judge'', and</DELETED>
                <DELETED>    (B) by inserting ``or magistrate judge's'' 
                after ``judge's'' each place it appears.</DELETED>
        <DELETED>    (4) Section 7448(c) is amended--</DELETED>
                <DELETED>    (A) in paragraph (1), by striking ``Tax 
                Court judges'' and inserting ``Tax Court judicial 
                officers'',</DELETED>
                <DELETED>    (B) in paragraph (2)--</DELETED>
                        <DELETED>    (i) in subparagraph (A), by 
                        inserting ``and section 7443A(d)'' after 
                        ``(a)(4)'', and</DELETED>
                        <DELETED>    (ii) in subparagraph (B), by 
                        striking ``subsection (a)(4)'' and inserting 
                        ``subsections (a)(4) and (a)(6)''.</DELETED>
        <DELETED>    (5) Section 7448(g) is amended by inserting ``or 
        section 7443B'' after ``section 7447'' each place it appears, 
        and by inserting ``or an annuity'' after ``retired 
        pay''.</DELETED>
        <DELETED>    (6) Section 7448(j)(1) is amended--</DELETED>
                <DELETED>    (A) in subparagraph (A), by striking 
                ``service or retired'' and inserting ``service, 
                retired'', and by inserting ``, or receiving any 
                annuity under section 7443B or chapters 83 or 84 of 
                title 5, United States Code,'' after ``section 7447'', 
                and</DELETED>
                <DELETED>    (B) in the last sentence, by striking 
                ``subsections (a)(6) and (7)'' and inserting 
                ``paragraphs (8) and (9) of subsection (a)''.</DELETED>
        <DELETED>    (7) Section 7448(m)(1), as amended by this Act, is 
        amended--</DELETED>
                <DELETED>    (A) by inserting ``or any annuity under 
                section 7443B or chapters 83 or 84 of title 5, United 
                States Code'' after ``7447(d)'', and</DELETED>
                <DELETED>    (B) by inserting ``or 7443B(m)(1)(B) after 
                ``7447(f)(4)''.</DELETED>
        <DELETED>    (8) Section 7448(n) is amended by inserting ``his 
        years of service pursuant to any appointment under section 
        7443A,'' after ``of the Tax Court,''.</DELETED>
        <DELETED>    (9) Section 3121(b)(5)(E) is amended by inserting 
        ``or magistrate judge'' before ``of the United States Tax 
        Court''.</DELETED>
        <DELETED>    (10) Section 210(a)(5)(E) of the Social Security 
        Act is amended by inserting ``or magistrate judge'' before ``of 
        the United States Tax Court''.</DELETED>

<DELETED>SEC. 210. RETIREMENT AND ANNUITY PROGRAM.</DELETED>

<DELETED>    (a) Retirement and Annuity Program.--Part I of subchapter 
C of chapter 76 is amended by inserting after section 7443A the 
following new section:</DELETED>

<DELETED>``SEC. 7443B. RETIREMENT FOR MAGISTRATE JUDGES OF THE TAX 
              COURT.</DELETED>

<DELETED>    ``(a) Retirement Based on Years of Service.--A magistrate 
judge of the Tax Court to whom this section applies and who retires 
from office after attaining the age of 65 years and serving at least 14 
years, whether continuously or otherwise, as such magistrate judge 
shall, subject to subsection (f), be entitled to receive, during the 
remainder of the magistrate judge's lifetime, an annuity equal to the 
salary being received at the time the magistrate judge leaves 
office.</DELETED>
<DELETED>    ``(b) Retirement Upon Failure of Reappointment.--A 
magistrate judge of the Tax Court to whom this section applies who is 
not reappointed following the expiration of the term of office of such 
magistrate judge, and who retires upon the completion of the term 
shall, subject to subsection (f), be entitled to receive, upon 
attaining the age of 65 years and during the remainder of such 
magistrate judge's lifetime, an annuity equal to that portion of the 
salary being received at the time the magistrate judge leaves office 
which the aggregate number of years of service, not to exceed 14, bears 
to 14, if--</DELETED>
        <DELETED>    ``(1) such magistrate judge has served at least 1 
        full term as a magistrate judge, and</DELETED>
        <DELETED>    ``(2) not earlier than 9 months before the date on 
        which the term of office of such magistrate judge expires, and 
        not later than 6 months before such date, such magistrate judge 
        notified the chief judge of the Tax Court in writing that such 
        magistrate judge was willing to accept reappointment to the 
        position in which such magistrate judge was serving.</DELETED>
<DELETED>    ``(c) Service of at Least 8 Years.--A magistrate judge of 
the Tax Court to whom this section applies and who retires after 
serving at least 8 years, whether continuously or otherwise, as such a 
magistrate judge shall, subject to subsection (f), be entitled to 
receive, upon attaining the age of 65 years and during the remainder of 
the magistrate judge's lifetime, an annuity equal to that portion of 
the salary being received at the time the magistrate judge leaves 
office which the aggregate number of years of service, not to exceed 
14, bears to 14. Such annuity shall be reduced by 
</DELETED>\<DELETED>1/6</DELETED>\ <DELETED>of 1 percent for each full 
month such magistrate judge was under the age of 65 at the time the 
magistrate judge left office, except that such reduction shall not 
exceed 20 percent.</DELETED>
<DELETED>    ``(d) Retirement for Disability.--A magistrate judge of 
the Tax Court to whom this section applies, who has served at least 5 
years, whether continuously or otherwise, as such a magistrate judge, 
and who retires or is removed from office upon the sole ground of 
mental or physical disability shall, subject to subsection (f), be 
entitled to receive, during the remainder of the magistrate judge's 
lifetime, an annuity equal to 40 percent of the salary being received 
at the time of retirement or removal or, in the case of a magistrate 
judge who has served for at least 10 years, an amount equal to that 
proportion of the salary being received at the time of retirement or 
removal which the aggregate number of years of service, not to exceed 
14, bears to 14.</DELETED>
<DELETED>    ``(e) Cost-of-Living Adjustments.--A magistrate judge of 
the Tax Court who is entitled to an annuity under this section is also 
entitled to a cost-of-living adjustment in such annuity, calculated and 
payable in the same manner as adjustments under section 8340(b) of 
title 5, United States Code, except that any such annuity, as increased 
under this subsection, may not exceed the salary then payable for the 
position from which the magistrate judge retired or was 
removed.</DELETED>
<DELETED>    ``(f) Election; Annuity in Lieu of Other Annuities.--
</DELETED>
        <DELETED>    ``(1) In general.--A magistrate judge of the Tax 
        Court shall be entitled to an annuity under this section if the 
        magistrate judge elects an annuity under this section by 
        notifying the chief judge of the Tax Court not later than the 
        later of--</DELETED>
                <DELETED>    ``(A) 5 years after the magistrate judge 
                of the Tax Court begins judicial service, or</DELETED>
                <DELETED>    ``(B) 5 years after the date of the 
                enactment of this subsection.</DELETED>
        <DELETED>Such notice shall be given in accordance with 
        procedures prescribed by the Tax Court.</DELETED>
        <DELETED>    ``(2) Annuity in lieu of other annuity.--A 
        magistrate judge who elects to receive an annuity under this 
        section shall not be entitled to receive--</DELETED>
                <DELETED>    ``(A) any annuity to which such magistrate 
                judge would otherwise have been entitled under 
                subchapter III of chapter 83, or under chapter 84 
                (except for subchapters III and VII), of title 5, 
                United States Code, for service performed as a 
                magistrate or otherwise,</DELETED>
                <DELETED>    ``(B) an annuity or salary in senior 
                status or retirement under section 371 or 372 of title 
                28, United States Code,</DELETED>
                <DELETED>    ``(C) retired pay under section 7447, 
                or</DELETED>
                <DELETED>    ``(D) retired pay under section 7296 of 
                title 38, United States Code.</DELETED>
        <DELETED>    ``(3) Coordination with title 5.--A magistrate 
        judge of the Tax Court who elects to receive an annuity under 
        this section--</DELETED>
                <DELETED>    ``(A) shall not be subject to deductions 
                and contributions otherwise required by section 8334(a) 
                of title 5, United States Code,</DELETED>
                <DELETED>    ``(B) shall be excluded from the operation 
                of chapter 84 (other than subchapters III and VII) of 
                such title 5, and</DELETED>
                <DELETED>    ``(C) is entitled to a lump-sum credit 
                under section 8342(a) or 8424 of such title 5, as the 
                case may be.</DELETED>
<DELETED>    ``(g) Calculation of Service.--For purposes of calculating 
an annuity under this section--</DELETED>
        <DELETED>    ``(1) service as a magistrate judge of the Tax 
        Court to whom this section applies may be credited, 
        and</DELETED>
        <DELETED>    ``(2) each month of service shall be credited as 
        </DELETED>\<DELETED>1/12</DELETED>\ <DELETED>of a year, and the 
        fractional part of any month shall not be credited.</DELETED>
<DELETED>    ``(h) Covered Positions and Service.--This section applies 
to any magistrate judge of the Tax Court or special trial judge of the 
Tax Court appointed under this subchapter, but only with respect to 
service as such a magistrate judge or special trial judge after a date 
not earlier than 9</DELETED>\<DELETED>1/2</DELETED>\ <DELETED>years 
before the date of the enactment of this subsection.</DELETED>
<DELETED>    ``(i) Payments Pursuant to Court Order.--</DELETED>
        <DELETED>    ``(1) In general.--Payments under this section 
        which would otherwise be made to a magistrate judge of the Tax 
        Court based upon his or her service shall be paid (in whole or 
        in part) by the chief judge of the Tax Court to another person 
        if and to the extent expressly provided for in the terms of any 
        court decree of divorce, annulment, or legal separation, or the 
        terms of any court order or court-approved property settlement 
        agreement incident to any court decree of divorce, annulment, 
        or legal separation. Any payment under this paragraph to a 
        person bars recovery by any other person.</DELETED>
        <DELETED>    ``(2) Requirements for payment.--Paragraph (1) 
        shall apply only to payments made by the chief judge of the Tax 
        Court after the date of receipt by the chief judge of written 
        notice of such decree, order, or agreement, and such additional 
        information as the chief judge may prescribe.</DELETED>
        <DELETED>    ``(3) Court defined.--For purposes of this 
        subsection, the term `court' means any court of any State, the 
        District of Columbia, the Commonwealth of Puerto Rico, Guam, 
        the Northern Mariana Islands, or the Virgin Islands, and any 
        Indian tribal court or courts of Indian offense.</DELETED>
<DELETED>    ``(j) Deductions, Contributions, and Deposits.--</DELETED>
        <DELETED>    ``(1) Deductions.--Beginning with the next pay 
        period after the chief judge of the Tax Court receives a notice 
        under subsection (f) that a magistrate judge of the Tax Court 
        has elected an annuity under this section, the chief judge 
        shall deduct and withhold 1 percent of the salary of such 
        magistrate judge. Amounts shall be so deducted and withheld in 
        a manner determined by the chief judge. Amounts deducted and 
        withheld under this subsection shall be deposited in the 
        Treasury of the United States to the credit of the Tax Court 
        Judicial Officers' Retirement Fund. Deductions under this 
        subsection from the salary of a magistrate judge shall 
        terminate upon the retirement of the magistrate judge or upon 
        completion of 14 years of service for which contributions under 
        this section have been made, whether continuously or otherwise, 
        as calculated under subsection (g), whichever occurs 
        first.</DELETED>
        <DELETED>    ``(2) Consent to deductions; discharge of 
        claims.--Each magistrate judge of the Tax Court who makes an 
        election under subsection (f) shall be deemed to consent and 
        agree to the deductions from salary which are made under 
        paragraph (1). Payment of such salary less such deductions (and 
        any deductions made under section 7448) is a full and complete 
        discharge and acquittance of all claims and demands for all 
        services rendered by such magistrate judge during the period 
        covered by such payment, except the right to those benefits to 
        which the magistrate judge is entitled under this section (and 
        section 7448).</DELETED>
<DELETED>    ``(k) Deposits for Prior Service.--Each magistrate judge 
of the Tax Court who makes an election under subsection (f) may 
deposit, for service performed before such election for which 
contributions may be made under this section, an amount equal to 1 
percent of the salary received for that service. Credit for any period 
covered by that service may not be allowed for purposes of an annuity 
under this section until a deposit under this subsection has been made 
for that period.</DELETED>
<DELETED>    ``(l) Individual Retirement Records.--The amounts deducted 
and withheld under subsection (j), and the amounts deposited under 
subsection (k), shall be credited to individual accounts in the name of 
each magistrate judge of the Tax Court from whom such amounts are 
received, for credit to the Tax Court Judicial Officers' Retirement 
Fund.</DELETED>
<DELETED>    ``(m) Annuities Affected in Certain Cases.--</DELETED>
        <DELETED>    ``(1) 1-year forfeiture for failure to perform 
        judicial duties.--Subject to paragraph (3), any magistrate 
        judge of the Tax Court who retires under this section and who 
        fails to perform judicial duties required of such individual by 
        section 7443C shall forfeit all rights to an annuity under this 
        section for a 1-year period which begins on the 1st day on 
        which such individual fails to perform such duties.</DELETED>
        <DELETED>    ``(2) Permanent forfeiture of retired pay where 
        certain non-government services performed.--Subject to 
        paragraph (3), any magistrate judge of the Tax Court who 
        retires under this section and who thereafter performs (or 
        supervises or directs the performance of) legal or accounting 
        services in the field of Federal taxation for the individual's 
        client, the individual's employer, or any of such employer's 
clients, shall forfeit all rights to an annuity under this section for 
all periods beginning on or after the first day on which the individual 
performs (or supervises or directs the performance of) such services. 
The preceding sentence shall not apply to any civil office or 
employment under the Government of the United States.</DELETED>
        <DELETED>    ``(3) Forfeitures not to apply where individual 
        elects to freeze amount of annuity.--</DELETED>
                <DELETED>    ``(A) In general.--If a magistrate judge 
                of the Tax Court makes an election under this 
                paragraph--</DELETED>
                        <DELETED>    ``(i) paragraphs (1) and (2) (and 
                        section 7443C) shall not apply to such 
                        magistrate judge beginning on the date such 
                        election takes effect, and</DELETED>
                        <DELETED>    ``(ii) the annuity payable under 
                        this section to such magistrate judge, for 
                        periods beginning on or after the date such 
                        election takes effect, shall be equal to the 
                        annuity to which such magistrate judge is 
                        entitled on the day before such effective 
                        date.</DELETED>
                <DELETED>    ``(B) Election requirements.--An election 
                under subparagraph (A)--</DELETED>
                        <DELETED>    ``(i) may be made by a magistrate 
                        judge of the Tax Court eligible for retirement 
                        under this section, and</DELETED>
                        <DELETED>    ``(ii) shall be filed with the 
                        chief judge of the Tax Court.</DELETED>
                <DELETED>Such an election, once it takes effect, shall 
                be irrevocable.</DELETED>
                <DELETED>    ``(C) Effective date of election.--Any 
                election under subparagraph (A) shall take effect on 
                the first day of the first month following the month in 
                which the election is made.</DELETED>
        <DELETED>    ``(4) Accepting other employment.--Any magistrate 
        judge of the Tax Court who retires under this section and 
        thereafter accepts compensation for civil office or employment 
        under the United States Government (other than for the 
        performance of functions as a magistrate judge of the Tax Court 
        under section 7443C) shall forfeit all rights to an annuity 
        under this section for the period for which such compensation 
        is received. For purposes of this paragraph, the term 
        `compensation' includes retired pay or salary received in 
        retired status.</DELETED>
<DELETED>    ``(n) Lump-Sum Payments.--</DELETED>
        <DELETED>    ``(1) Eligibility.--</DELETED>
                <DELETED>    ``(A) In general.--Subject to paragraph 
                (2), an individual who serves as a magistrate judge of 
                the Tax Court and--</DELETED>
                        <DELETED>    ``(i) who leaves office and is not 
                        reappointed as a magistrate judge of the Tax 
                        Court for at least 31 consecutive 
                        days,</DELETED>
                        <DELETED>    ``(ii) who files an application 
                        with the chief judge of the Tax Court for 
                        payment of a lump-sum credit,</DELETED>
                        <DELETED>    ``(iii) is not serving as a 
                        magistrate judge of the Tax Court at the time 
                        of filing of the application, and</DELETED>
                        <DELETED>    ``(iv) will not become eligible to 
                        receive an annuity under this section within 31 
                        days after filing the application,</DELETED>
                <DELETED>is entitled to be paid the lump-sum credit. 
                Payment of the lump-sum credit voids all rights to an 
                annuity under this section based on the service on 
                which the lump-sum credit is based, until that 
                individual resumes office as a magistrate judge of the 
                Tax Court.</DELETED>
                <DELETED>    ``(B) Payment to survivors.--Lump-sum 
                benefits authorized by subparagraphs (C), (D), and (E) 
                of this paragraph shall be paid to the person or 
                persons surviving the magistrate judge of the Tax Court 
                and alive on the date title to the payment arises, in 
                the order of precedence set forth in subsection (o) of 
                section 376 of title 28, United States Code, and in 
                accordance with the last 2 sentences of paragraph (1) 
                of that subsection. For purposes of the preceding 
                sentence, the term `judicial official' as used in 
                subsection (o) of such section 376 shall be deemed to 
                mean `magistrate judge of the Tax Court' and the terms 
                `Administrative Office of the United States Courts' and 
                `Director of the Administrative Office of the United 
                States Courts' shall be deemed to mean `chief judge of 
                the Tax Court'.</DELETED>
                <DELETED>    ``(C) Payment upon death of judge before 
                receipt of annuity.--If a magistrate judge of the Tax 
                Court dies before receiving an annuity under this 
                section, the lump-sum credit shall be paid.</DELETED>
                <DELETED>    ``(D) Payment of annuity remainder.--If 
                all annuity rights under this section based on the 
                service of a deceased magistrate judge of the Tax Court 
                terminate before the total annuity paid equals the 
                lump-sum credit, the difference shall be 
                paid.</DELETED>
                <DELETED>    ``(E) Payment upon death of judge during 
                receipt of annuity.--If a magistrate judge of the Tax 
                Court who is receiving an annuity under this section 
                dies, any accrued annuity benefits remaining unpaid 
                shall be paid.</DELETED>
                <DELETED>    ``(F) Payment upon termination.--Any 
                accrued annuity benefits remaining unpaid on the 
                termination, except by death, of the annuity of a 
                magistrate judge of the Tax Court shall be paid to that 
                individual.</DELETED>
                <DELETED>    ``(G) Payment upon accepting other 
                employment.--Subject to paragraph (2), a magistrate 
                judge of the Tax Court who forfeits rights to an 
                annuity under subsection (m)(4) before the total 
                annuity paid equals the lump-sum credit shall be 
                entitled to be paid the difference if the magistrate 
                judge of the Tax Court files an application with the 
                chief judge of the Tax Court for payment of that 
                difference. A payment under this subparagraph voids all 
                rights to an annuity on which the payment is 
                based.</DELETED>
        <DELETED>    ``(2) Spouses and former spouses.--</DELETED>
                <DELETED>    ``(A) In general.--Payment of the lump-sum 
                credit under paragraph (1)(A) or a payment under 
                paragraph (1)(G)--</DELETED>
                        <DELETED>    ``(i) may be made only if any 
                        current spouse and any former spouse of the 
                        magistrate judge of the Tax Court are notified 
                        of the magistrate judge's application, 
                        and</DELETED>
                        <DELETED>    ``(ii) shall be subject to the 
                        terms of a court decree of divorce, annulment, 
                        or legal separation, or any court or court 
                        approved property settlement agreement incident 
                        to such decree, if--</DELETED>
                                <DELETED>    ``(I) the decree, order, 
                                or agreement expressly relates to any 
                                portion of the lump-sum credit or other 
                                payment involved, and</DELETED>
                                <DELETED>    ``(II) payment of the 
                                lump-sum credit or other payment would 
                                extinguish entitlement of the 
                                magistrate judge's spouse or former 
                                spouse to any portion of an annuity 
                                under subsection (i).</DELETED>
                <DELETED>    ``(B) Notification.--Notification of a 
                spouse or former spouse under this paragraph shall be 
                made in accordance with such procedures as the chief 
                judge of the Tax Court shall prescribe. The chief judge 
                may provide under such procedures that subparagraph 
                (A)(i) may be waived with respect to a spouse or former 
                spouse if the magistrate judge establishes to the 
                satisfaction of the chief judge that the whereabouts of 
                such spouse or former spouse cannot be 
                determined.</DELETED>
                <DELETED>    ``(C) Resolution of 2 or more orders.--The 
                chief judge shall prescribe procedures under which this 
                paragraph shall be applied in any case in which the 
                chief judge receives 2 or more orders or decrees 
                described in subparagraph (A).</DELETED>
        <DELETED>    ``(3) Definition.--For purposes of this 
        subsection, the term `lump-sum credit' means the unrefunded 
        amount consisting of--</DELETED>
                <DELETED>    ``(A) retirement deductions made under 
                this section from the salary of a magistrate judge of 
                the Tax Court,</DELETED>
                <DELETED>    ``(B) amounts deposited under subsection 
                (k) by a magistrate judge of the Tax Court covering 
                earlier service, and</DELETED>
                <DELETED>    ``(C) interest on the deductions and 
                deposits which, for any calendar year, shall be equal 
                to the overall average yield to the Tax Court Judicial 
                Officers' Retirement Fund during the preceding fiscal 
                year from all obligations purchased by the Secretary 
                during such fiscal year under subsection (o); but does 
                not include interest--</DELETED>
                        <DELETED>    ``(i) if the service covered 
                        thereby aggregates 1 year or less, or</DELETED>
                        <DELETED>    ``(ii) for the fractional part of 
                        a month in the total service.</DELETED>
<DELETED>    ``(o) Tax Court Judicial Officers' Retirement Fund.--
</DELETED>
        <DELETED>    ``(1) Establishment.--There is established in the 
        Treasury a fund which shall be known as the `Tax Court Judicial 
        Officers' Retirement Fund'. Amounts in the Fund are authorized 
        to be appropriated for the payment of annuities, refunds, and 
        other payments under this section.</DELETED>
        <DELETED>    ``(2) Investment of fund.--The Secretary shall 
        invest, in interest bearing securities of the United States, 
        such currently available portions of the Tax Court Judicial 
        Officers' Retirement Fund as are not immediately required for 
        payments from the Fund. The income derived from these 
        investments constitutes a part of the Fund.</DELETED>
        <DELETED>    ``(3) Unfunded liability.--</DELETED>
                <DELETED>    ``(A) In general.--There are authorized to 
                be appropriated to the Tax Court Judicial Officers' 
                Retirement Fund amounts required to reduce to zero the 
                unfunded liability of the Fund.</DELETED>
                <DELETED>    ``(B) Unfunded liability.--For purposes of 
                subparagraph (A), the term `unfunded liability' means 
                the estimated excess, determined on an annual basis in 
                accordance with the provisions of section 9503 of title 
                31, United States Code, of the present value of all 
                benefits payable from the Tax Court Judicial Officers' 
                Retirement Fund over the sum of--</DELETED>
                        <DELETED>    ``(i) the present value of 
                        deductions to be withheld under this section 
                        from the future basic pay of magistrate judges 
                        of the Tax Court, plus</DELETED>
                        <DELETED>    ``(ii) the balance in the Fund as 
                        of the date the unfunded liability is 
                        determined.</DELETED>
<DELETED>    ``(p) Participation in Thrift Savings Plan.--</DELETED>
        <DELETED>    ``(1) Election to contribute.--</DELETED>
                <DELETED>    ``(A) In general.--A magistrate judge of 
                the Tax Court who elects to receive an annuity under 
                this section or under section 211 of the United States 
                Tax Court Modernization Act may elect to contribute an 
                amount of such individual's basic pay to the Thrift 
                Savings Fund established by section 8437 of title 5, 
                United States Code.</DELETED>
                <DELETED>    ``(B) Period of election.--An election may 
                be made under this paragraph only during a period 
                provided under section 8432(b) of title 5, United 
                States Code, for individuals subject to chapter 84 of 
                such title.</DELETED>
        <DELETED>    ``(2) Applicability of title 5 provisions.--Except 
        as otherwise provided in this subsection, the provisions of 
        subchapters III and VII of chapter 84 of title 5, United States 
        Code, shall apply with respect to a magistrate judge who makes 
        an election under paragraph (1).</DELETED>
        <DELETED>    ``(3) Special rules.--</DELETED>
                <DELETED>    ``(A) Amount contributed.--The amount 
                contributed by a magistrate judge to the Thrift Savings 
                Fund in any pay period shall not exceed the maximum 
                percentage of such judge's basic pay for such pay 
                period as allowable under section 8440f of title 5, 
                United States Code.</DELETED>
                <DELETED>    ``(B) Contributions for benefit of 
                judge.--No contributions may be made for the benefit of 
                a magistrate judge under section 8432(c) of title 5, 
                United States Code.</DELETED>
                <DELETED>    ``(C) Applicability of section 8433(b) of 
                title 5.--Section 8433(b) of title 5, United States 
                Code, applies with respect to a magistrate judge who 
                makes an election under paragraph (1) and--</DELETED>
                        <DELETED>    ``(i) who retires entitled to an 
                        immediate annuity under this section (including 
                        a disability annuity under subsection (d) of 
                        this section) or section 211 of the United 
                        States Tax Court Modernization Act,</DELETED>
                        <DELETED>    ``(ii) who retires before 
                        attaining age 65 but is entitled, upon 
                        attaining age 65, to an annuity under this 
                        section or section 211 of the United States Tax 
                        Court Modernization Act, or</DELETED>
                        <DELETED>    ``(iii) who retires before 
                        becoming entitled to an immediate annuity, or 
                        an annuity upon attaining age 65, under this 
                        section or section 211 of the United States Tax 
                        Court Modernization Act.</DELETED>
                <DELETED>    ``(D) Separation from service.--With 
                respect to a magistrate judge to whom this subsection 
                applies, retirement under this section or section 211 
                of the United States Tax Court Modernization Act is a 
                separation from service for purposes of subchapters III 
                and VII of chapter 84 of title 5, United States 
                Code.</DELETED>
        <DELETED>    ``(4) Definitions.--For purposes of this 
        subsection, the terms `retirement' and `retire' include removal 
        from office under section 7443A(a)(2) on the sole ground of 
        mental or physical disability.</DELETED>
        <DELETED>    ``(5) Offset.--In the case of a magistrate judge 
        who receives a distribution from the Thrift Savings Fund and 
        who later receives an annuity under this section, that annuity 
        shall be offset by an amount equal to the amount which 
        represents the Government's contribution to that person's 
        Thrift Savings Account, without regard to earnings attributable 
        to that amount. Where such an offset would exceed 50 percent of 
        the annuity to be received in the first year, the offset may be 
        divided equally over the first 2 years in which that person 
        receives the annuity.</DELETED>
        <DELETED>    ``(6) Exception.--Notwithstanding clauses (i) and 
        (ii) of paragraph (3)(C), if any magistrate judge retires under 
        circumstances making such magistrate judge eligible to make an 
        election under subsection (b) of section 8433 of title 5, 
        United States Code, and such magistrate judge's nonforfeitable 
        account balance is less than an amount that the Executive 
        Director of the Office of Personnel Management prescribes by 
        regulation, the Executive Director shall pay the nonforfeitable 
        account balance to the participant in a single 
        payment.''.</DELETED>
<DELETED>    (b) Conforming Amendment.--The table of sections for part 
I of subchapter C of chapter 76 is amended by inserting after the item 
relating to section 7443A the following new item:</DELETED>

                              <DELETED>``Sec. 7443B. Retirement for 
                                        magistrate judges of the Tax 
                                        Court.''.

<DELETED>SEC. 211. INCUMBENT MAGISTRATE JUDGES OF THE TAX 
              COURT.</DELETED>

<DELETED>    (a) Retirement Annuity Under Title 5 and Section 7443B of 
the Internal Revenue Code of 1986.--A magistrate judge of the United 
States Tax Court in active service on the date of the enactment of this 
Act shall, subject to subsection (b), be entitled, in lieu of the 
annuity otherwise provided under the amendments made by this title, 
to--</DELETED>
        <DELETED>    (1) an annuity under subchapter III of chapter 83, 
        or under chapter 84 (except for subchapters III and VII), of 
        title 5, United States Code, as the case may be, for creditable 
        service before the date on which service would begin to be 
        credited for purposes of paragraph (2), and</DELETED>
        <DELETED>    (2) an annuity calculated under subsection (b) or 
        (c) and subsection (g) of section 7443B of the Internal Revenue 
        Code of 1986, as added by this Act, for any service as a 
        magistrate judge of the United States Tax Court or special 
        trial judge of the United States Tax Court but only with 
        respect to service as such a magistrate judge or special trial 
        judge after a date not earlier than 9</DELETED>\<DELETED>1/
        2</DELETED>\ <DELETED>years prior to the date of the enactment 
        of this Act (as specified in the election pursuant to 
        subsection (b)) for which deductions and deposits are made 
        under subsections (j) and (k) of such section 7443B, as 
        applicable, without regard to the minimum number of years of 
        service as such a magistrate judge of the United States Tax 
        Court, except that--</DELETED>
                <DELETED>    (A) in the case of a magistrate judge who 
                retired with less than 8 years of service, the annuity 
                under subsection (c) of such section 7443B shall be 
                equal to that proportion of the salary being received 
                at the time the magistrate judge leaves office which 
                the years of service bears to 14, subject to a 
reduction in accordance with subsection (c) of such section 7443B if 
the magistrate judge is under age 65 at the time he or she leaves 
office, and</DELETED>
                <DELETED>    (B) the aggregate amount of the annuity 
                initially payable on retirement under this subsection 
                may not exceed the rate of pay for the magistrate judge 
                which is in effect on the day before the retirement 
                becomes effective.</DELETED>
<DELETED>    (b) Filing of Notice of Election.--A magistrate judge of 
the United States Tax Court shall be entitled to an annuity under this 
section only if the magistrate judge files a notice of that election 
with the chief judge of the United States Tax Court specifying the date 
on which service would begin to be credited under section 7443B of the 
Internal Revenue Code of 1986, as added by this Act, in lieu of chapter 
83 or chapter 84 of title 5, United States Code. Such notice shall be 
filed in accordance with such procedures as the chief judge of the 
United States Tax Court shall prescribe.</DELETED>
<DELETED>    (c) Lump-Sum Credit Under Title 5.--A magistrate judge of 
the United States Tax Court who makes an election under subsection (b) 
shall be entitled to a lump-sum credit under section 8342 or 8424 of 
title 5, United States Code, as the case may be, for any service which 
is covered under section 7443B of the Internal Revenue Code of 1986, as 
added by this Act, pursuant to that election, and with respect to which 
any contributions were made by the magistrate judge under the 
applicable provisions of title 5, United States Code.</DELETED>
<DELETED>    (d) Recall.--With respect to any magistrate judge of the 
United States Tax Court receiving an annuity under this section who is 
recalled to serve under section 7443C of the Internal Revenue Code of 
1986, as added by this Act--</DELETED>
        <DELETED>    (1) the amount of compensation which such recalled 
        magistrate judge receives under such section 7443C shall be 
        calculated on the basis of the annuity received under this 
        section, and</DELETED>
        <DELETED>    (2) such recalled magistrate judge of the United 
        States Tax Court may serve as a reemployed annuitant to the 
        extent otherwise permitted under title 5, United States 
        Code.</DELETED>
<DELETED>Section 7443B(m)(4) of the Internal Revenue Code of 1986, as 
added by this Act, shall not apply with respect to service as a 
reemployed annuitant described in paragraph (2).</DELETED>

<DELETED>SEC. 212. PROVISIONS FOR RECALL.</DELETED>

<DELETED>    (a) In General.--Part I of subchapter C of chapter 76, as 
amended by this Act, is amended by inserting after section 7443B the 
following new section:</DELETED>

<DELETED>``SEC. 7443C. RECALL OF MAGISTRATE JUDGES OF THE TAX 
              COURT.</DELETED>

<DELETED>    ``(a) Recalling of Retired Magistrate Judges.--Any 
individual who has retired pursuant to section 7443B or the applicable 
provisions of title 5, United States Code, upon reaching the age and 
service requirements established therein, may at or after retirement be 
called upon by the chief judge of the Tax Court to perform such 
judicial duties with the Tax Court as may be requested of such 
individual for any period or periods specified by the chief judge; 
except that in the case of any such individual--</DELETED>
        <DELETED>    ``(1) the aggregate of such periods in any 1 
        calendar year shall not (without such individual's consent) 
        exceed 90 calendar days, and</DELETED>
        <DELETED>    ``(2) such individual shall be relieved of 
        performing such duties during any period in which illness or 
        disability precludes the performance of such duties.</DELETED>
<DELETED>Any act, or failure to act, by an individual performing 
judicial duties pursuant to this subsection shall have the same force 
and effect as if it were the act (or failure to act) of a magistrate 
judge of the Tax Court.</DELETED>
<DELETED>    ``(b) Compensation.--For the year in which a period of 
recall occurs, the magistrate judge shall receive, in addition to the 
annuity provided under the provisions of section 7443B or under the 
applicable provisions of title 5, United States Code, an amount equal 
to the difference between that annuity and the current salary of the 
office to which the magistrate judge is recalled. The annuity of the 
magistrate judge who completes that period of service, who is not 
recalled in a subsequent year, and who retired under section 7443B, 
shall be equal to the salary in effect at the end of the year in which 
the period of recall occurred for the office from which such individual 
retired.</DELETED>
<DELETED>    ``(c) Rulemaking Authority.--The provisions of this 
section may be implemented under such rules as may be promulgated by 
the Tax Court.''.</DELETED>
<DELETED>    (b) Conforming Amendment.--The table of sections for part 
I of subchapter C of chapter 76, as amended by this Act, is amended by 
inserting after the item relating to section 7443B the following new 
item:</DELETED>

                              <DELETED>``Sec. 7443C. Recall of 
                                        magistrate judges of the Tax 
                                        Court.''.

<DELETED>SEC. 213. EFFECTIVE DATE.</DELETED>

<DELETED>    Except as otherwise provided, the amendments made by this 
title shall take effect on the date of the enactment of this 
Act.</DELETED>

SECTION 1. SHORT TITLE; ETC.

    (a) Short Title.--This Act may be cited as the ``United States Tax 
Court Modernization Act''.
    (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this Act an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of the Internal Revenue Code of 1986.
    (c) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; etc.

                      TITLE I--TAX COURT PROCEDURE

Sec. 101. Jurisdiction of Tax Court over collection due process cases.
Sec. 102. Authority for special trial judges to hear and decide certain 
                            employment status cases.
Sec. 103. Confirmation of authority of Tax Court to apply doctrine of 
                            equitable recoupment.
Sec. 104. Tax Court filing fee in all cases commenced by filing 
                            petition.
Sec. 105. Amendments to appoint employees.
Sec. 106. Expanded use of Tax Court practice fee for pro se taxpayers.

              TITLE II--TAX COURT PENSION AND COMPENSATION

Sec. 201. Annuities for survivors of Tax Court judges who are 
                            assassinated.
Sec. 202. Cost-of-living adjustments for Tax Court judicial survivor 
                            annuities.
Sec. 203. Life insurance coverage for Tax Court judges.
Sec. 204. Cost of life insurance coverage for Tax Court judges age 65 
                            or over.
Sec. 205. Modification of timing of lump-sum payment of judges' accrued 
                            annual leave.
Sec. 206. Participation of Tax Court judges in the Thrift Savings Plan.
Sec. 207. Exemption of teaching compensation of retired judges from 
                            limitation on outside earned income.
Sec. 208. General provisions relating to magistrate judges of the Tax 
                            Court.
Sec. 209. Annuities to surviving spouses and dependent children of 
                            magistrate judges of the Tax Court.
Sec. 210. Retirement and annuity program.
Sec. 211. Incumbent magistrate judges of the Tax Court.
Sec. 212. Provisions for recall.
Sec. 213. Effective date.

                      TITLE I--TAX COURT PROCEDURE

SEC. 101. JURISDICTION OF TAX COURT OVER COLLECTION DUE PROCESS CASES.

    (a) In General.--Paragraph (1) of section 6330(d) (relating to 
proceeding after hearing) is amended to read as follows:
            ``(1) Judicial review of determination.--The person may, 
        within 30 days of a determination under this section, appeal 
        such determination to the Tax Court (and the Tax Court shall 
        have jurisdiction with respect to such matter).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to determinations made after the date which is 60 days after the date 
of the enactment of this Act.

SEC. 102. AUTHORITY FOR SPECIAL TRIAL JUDGES TO HEAR AND DECIDE CERTAIN 
              EMPLOYMENT STATUS CASES.

    (a) In General.--Section 7443A(b) (relating to proceedings which 
may be assigned to special trial judges) is amended by striking ``and'' 
at the end of paragraph (4), by redesignating paragraph (5) as 
paragraph (6), and by inserting after paragraph (4) the following new 
paragraph:
            ``(5) any proceeding under section 7436(c), and''.
    (b) Conforming Amendment.--Section 7443A(c) is amended by striking 
``or (4)'' and inserting ``(4), or (5)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to any proceeding under section 7436(c) of the Internal Revenue 
Code of 1986 with respect to which a decision has not become final (as 
determined under section 7481 of such Code) before the date of the 
enactment of this Act.

SEC. 103. CONFIRMATION OF AUTHORITY OF TAX COURT TO APPLY DOCTRINE OF 
              EQUITABLE RECOUPMENT.

    (a) Confirmation of Authority of Tax Court To Apply Doctrine of 
Equitable Recoupment.--Section 6214(b) (relating to jurisdiction over 
other years and quarters) is amended by adding at the end the following 
new sentence: ``Notwithstanding the preceding sentence, the Tax Court 
may apply the doctrine of equitable recoupment to the same extent that 
it is available in civil tax cases before the district courts of the 
United States and the United States Court of Federal Claims.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to any action or proceeding in the United States Tax Court with respect 
to which a decision has not become final (as determined under section 
7481 of the Internal Revenue Code of 1986) as of the date of the 
enactment of this Act.

SEC. 104. TAX COURT FILING FEE IN ALL CASES COMMENCED BY FILING 
              PETITION.

    (a) In General.--Section 7451 (relating to fee for filing a Tax 
Court petition) is amended by striking all that follows ``petition'' 
and inserting a period.
    (b) Effective Date.--The amendment made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 105. AMENDMENTS TO APPOINT EMPLOYEES.

    (a) In General.--Subsection (a) of section 7471 (relating to Tax 
Court employees) is amended to read as follows:
    ``(a) Appointment and Compensation.--
            ``(1) Clerk.--The Tax Court may appoint a clerk without 
        regard to the provisions of title 5, United States Code, 
        governing appointments in the competitive service. The clerk 
        shall serve at the pleasure of the Tax Court.
            ``(2) Law clerks and secretaries.--
                    ``(A) In general.--The judges and special trial 
                judges of the Tax Court may appoint law clerks and 
                secretaries, in such numbers as the Tax Court may 
                approve, without regard to the provisions of title 5, 
                United States Code, governing appointments in the 
                competitive service. Any such law clerk or secretary 
                shall serve at the pleasure of the appointing judge.
                    ``(B) Exemption from federal leave provisions.--A 
                law clerk appointed under this subsection shall be 
                exempt from the provisions of subchapter I of chapter 
                63 of title 5, United States Code. Any unused sick 
                leave or annual leave standing to the employee's credit 
                as of the effective date of this subsection shall 
                remain credited to the employee and shall be available 
                to the employee upon separation from the Federal 
                Government.
            ``(3) Other employees.--The Tax Court may appoint necessary 
        employees without regard to the provisions of title 5, United 
        States Code, governing appointments in the competitive service. 
        Such employees shall be subject to removal by the Tax Court.
            ``(4) Pay.--The Tax Court may fix and adjust the 
        compensation for the clerk and other employees of the Tax Court 
        without regard to the provisions of chapter 51, subchapter III 
        of chapter 53, or section 5373 of title 5, United States Code. 
        To the maximum extent feasible, the Tax Court shall compensate 
        employees at rates consistent with those for employees holding 
        comparable positions in the judicial branch.
            ``(5) Programs.--The Tax Court may establish programs for 
        employee evaluations, incentive awards, flexible work 
        schedules, premium pay, and resolution of employee grievances.
            ``(6) Discrimination prohibited.--The Tax Court shall--
                    ``(A) prohibit discrimination on the basis of race, 
                color, religion, age, sex, national origin, political 
                affiliation, marital status, or handicapping condition; 
                and
                    ``(B) promulgate procedures for resolving 
                complaints of discrimination by employees and 
                applicants for employment.
            ``(7) Experts and consultants.--The Tax Court may procure 
        the services of experts and consultants under section 3109 of 
        title 5, United States Code.
            ``(8) Rights to certain appeals reserved.--Notwithstanding 
        any other provision of law, an individual who is an employee of 
        the Tax Court on the day before the effective date of this 
        subsection and who, as of that day, was entitled to--
                    ``(A) appeal a reduction in grade or removal to the 
                Merit Systems Protection Board under chapter 43 of 
                title 5, United States Code,
                    ``(B) appeal an adverse action to the Merit Systems 
                Protection Board under chapter 75 of title 5, United 
                States Code,
                    ``(C) appeal a prohibited personnel practice 
                described under section 2302(b) of title 5, United 
                States Code, to the Merit Systems Protection Board 
                under chapter 77 of that title,
                    ``(D) make an allegation of a prohibited personnel 
                practice described under section 2302(b) of title 5, 
                United States Code, with the Office of Special Counsel 
                under chapter 12 of that title for action in accordance 
                with that chapter, or
                    ``(E) file an appeal with the Equal Employment 
                Opportunity Commission under part 1614 of title 29 of 
                the Code of Federal Regulations,
        shall be entitled to file such appeal or make such an 
        allegation so long as the individual remains an employee of the 
        Tax Court.
            ``(9) Competitive status.--Notwithstanding any other 
        provision of law, any employee of the Tax Court who has 
        completed at least 1 year of continuous service under a non-
        temporary appointment with the Tax Court acquires a competitive 
        status for appointment to any position in the competitive 
        service for which the employee possesses the required 
        qualifications.
            ``(10) Merit system principles; prohibited personnel 
        practices; and preference eligibles.--Any personnel management 
        system of the Tax Court shall--
                    ``(A) include the principles set forth in section 
                2301(b) of title 5, United States Code;
                    ``(B) prohibit personnel practices prohibited under 
                section 2302(b) of title 5, United States Code; and
                    ``(C) in the case of any individual who would be a 
                preference eligible in the executive branch, the Tax 
                Court will provide preference for that individual in a 
                manner and to an extent consistent with preference 
                accorded to preference eligibles in the executive 
                branch.''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on the date the United States Tax Court adopts a personnel 
management system after the date of the enactment of this Act.

SEC. 106. EXPANDED USE OF TAX COURT PRACTICE FEE FOR PRO SE TAXPAYERS.

    (a) In General.--Section 7475(b) (relating to use of fees) is 
amended by inserting before the period at the end ``and to provide 
services to pro se taxpayers''.
    (b) Effective Date.--The amendment made by this section shall take 
effect on the date of the enactment of this Act.

              TITLE II--TAX COURT PENSION AND COMPENSATION

SEC. 201. ANNUITIES FOR SURVIVORS OF TAX COURT JUDGES WHO ARE 
              ASSASSINATED.

    (a) Eligibility in Case of Death by Assassination.--Subsection (h) 
of section 7448 (relating to annuities to surviving spouses and 
dependent children of judges) is amended to read as follows:
    ``(h) Entitlement to Annuity.--
            ``(1) In general.--
                    ``(A) Annuity to surviving spouse.--If a judge 
                described in paragraph (2) is survived by a surviving 
                spouse but not by a dependent child, there shall be 
                paid to such surviving spouse an annuity beginning with 
                the day of the death of the judge or following the 
                surviving spouse's attainment of the age of 50 years, 
                whichever is the later, in an amount computed as 
                provided in subsection (m).
                    ``(B) Annuity to child.--If such a judge is 
                survived by a surviving spouse and a dependent child or 
                children, there shall be paid to such surviving spouse 
                an immediate annuity in an amount computed as provided 
                in subsection (m), and there shall also be paid to or 
                on behalf of each such child an immediate annuity equal 
                to the lesser of--
                            ``(i) 10 percent of the average annual 
                        salary of such judge (determined in accordance 
                        with subsection (m)), or
                            ``(ii) 20 percent of such average annual 
                        salary, divided by the number of such children.
                    ``(C) Annuity to surviving dependent children.--If 
                such a judge leaves no surviving spouse but leaves a 
                surviving dependent child or children, there shall be 
                paid to or on behalf of each such child an immediate 
                annuity equal to the lesser of--
                            ``(i) 20 percent of the average annual 
                        salary of such judge (determined in accordance 
                        with subsection (m)), or
                            ``(ii) 40 percent of such average annual 
                        salary, divided by the number of such children.
            ``(2) Covered judges.--Paragraph (1) applies to any judge 
        electing under subsection (b)--
                    ``(A) who dies while a judge after having rendered 
                at least 5 years of civilian service computed as 
                prescribed in subsection (n), for the last 5 years of 
                which the salary deductions provided for by subsection 
                (c)(1) or the deposits required by subsection (d) have 
                actually been made or the salary deductions required by 
                the civil service retirement laws have actually been 
                made, or
                    ``(B) who dies by assassination after having 
                rendered less than 5 years of civilian service computed 
                as prescribed in subsection (n) if, for the period of 
                such service, the salary deductions provided for by 
                subsection (c)(1) or the deposits required by 
                subsection (d) have actually been made.
            ``(3) Termination of annuity.--
                    ``(A) In the case of a surviving spouse.--The 
                annuity payable to a surviving spouse under this 
                subsection shall be terminable upon such surviving 
                spouse's death or such surviving spouse's remarriage 
                before attaining age 55.
                    ``(B) In the case of a child.--The annuity payable 
                to a child under this subsection shall be terminable 
                upon (i) the child attaining the age of 18 years, (ii) 
                the child's marriage, or (iii) the child's death, 
                whichever first occurs, except that if such child is 
                incapable of self-support by reason of mental or 
                physical disability the child's annuity shall be 
                terminable only upon death, marriage, or recovery from 
                such disability.
                    ``(C) In the case of a dependent child after death 
                of surviving spouse.--In case of the death of a 
                surviving spouse of a judge leaving a dependent child 
                or children of the judge surviving such spouse, the 
                annuity of such child or children shall be recomputed 
                and paid as provided in paragraph (1)(C).
                    ``(D) Recomputation.--In any case in which the 
                annuity of a dependent child is terminated under this 
                subsection, the annuities of any remaining dependent 
                child or children, based upon the service of the same 
                judge, shall be recomputed and paid as though the child 
                whose annuity was so terminated had not survived such 
                judge.
            ``(4) Special rule for assassinated judges.--In the case of 
        a survivor or survivors of a judge described in paragraph 
        (2)(B), there shall be deducted from the annuities otherwise 
        payable under this section an amount equal to--
                    ``(A) the amount of salary deductions provided for 
                by subsection (c)(1) that would have been made if such 
                deductions had been made for 5 years of civilian 
                service computed as prescribed in subsection (n) before 
                the judge's death, reduced by
                    ``(B) the amount of such salary deductions that 
                were actually made before the date of the judge's 
                death.''.
    (b) Definition of Assassination.--Section 7448(a) (relating to 
definitions) is amended by adding at the end the following new 
paragraph:
            ``(8) The terms `assassinated' and `assassination' mean the 
        killing of a judge that is motivated by the performance by that 
        judge of his or her official duties.''.
    (c) Determination of Assassination.--Subsection (i) of section 7448 
is amended--
            (1) by striking the subsection heading and inserting the 
        following:
    ``(i) Determinations by Chief Judge.--
            ``(1) Dependency and disability.--'',
            (2) by moving the text 2 ems to the right, and
            (3) by adding at the end the following new paragraph:
            ``(2) Assassination.--The chief judge shall determine 
        whether the killing of a judge was an assassination, subject to 
        review only by the Tax Court. The head of any Federal agency 
        that investigates the killing of a judge shall provide 
        information to the chief judge that would assist the chief 
        judge in making such a determination.''.
    (d) Computation of Annuities.--Subsection (m) of section 7448 is 
amended--
            (1) by striking the subsection heading and inserting the 
        following:
    ``(m) Computation of Annuities.--
            ``(1) In general.--'',
            (2) by moving the text 2 ems to the right, and
            (3) by adding at the end the following new paragraph:
            ``(2) Assassinated judges.--In the case of a judge who is 
        assassinated and who has served less than 3 years, the annuity 
        of the surviving spouse of such judge shall be based upon the 
        average annual salary received by such judge for judicial 
        service.''.
    (e) Other Benefits.--Section 7448 is amended by adding at the end 
the following:
    ``(u) Other Benefits.--In the case of a judge who is assassinated, 
an annuity shall be paid under this section notwithstanding a 
survivor's eligibility for or receipt of benefits under chapter 81 of 
title 5, United States Code, except that the annuity for which a 
surviving spouse is eligible under this section shall be reduced to the 
extent that the total benefits paid under this section and chapter 81 
of that title for any year would exceed the current salary for that 
year of the office of the judge.''.

SEC. 202. COST-OF-LIVING ADJUSTMENTS FOR TAX COURT JUDICIAL SURVIVOR 
              ANNUITIES.

    (a) In General.--Subsection (s) of section 7448 (relating to 
annuities to surviving spouses and dependent children of judges) is 
amended to read as follows:
    ``(s) Increases in Survivor Annuities.--Each time that an increase 
is made under section 8340(b) of title 5, United States Code, in 
annuities payable under subchapter III of chapter 83 of that title, 
each annuity payable from the survivors annuity fund under this section 
shall be increased at the same time by the same percentage by which 
annuities are increased under such section 8340(b).''.
    (b) Effective Date.--The amendments made by this section shall 
apply with respect to increases made under section 8340(b) of title 5, 
United States Code, in annuities payable under subchapter III of 
chapter 83 of that title, taking effect after the date of the enactment 
of this Act.

SEC. 203. LIFE INSURANCE COVERAGE FOR TAX COURT JUDGES.

    (a) In General.--Section 7447 (relating to retirement of judges) is 
amended by adding at the end the following new subsection:
            ``(j) Life Insurance Coverage.--For purposes of chapter 87 
        of title 5, United States Code (relating to life insurance), 
        any individual who is serving as a judge of the Tax Court or 
        who is retired under this section is deemed to be an employee 
        who is continuing in active employment.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to any individual serving as a judge of the United States Tax Court and 
to any retired judge of the United States Tax Court on or after the 
date of the enactment of this Act.

SEC. 204. COST OF LIFE INSURANCE COVERAGE FOR TAX COURT JUDGES AGE 65 
              OR OVER.

    Section 7472 (relating to expenditures) is amended by inserting 
after the first sentence the following new sentence: ``Notwithstanding 
any other provision of law, the Tax Court is authorized to pay on 
behalf of its judges, age 65 or over, any increase in the cost of 
Federal Employees' Group Life Insurance imposed after April 24, 1999, 
including any expenses generated by such payments, as authorized by the 
chief judge in a manner consistent with such payments authorized by the 
Judicial Conference of the United States pursuant to section 604(a)(5) 
of title 28, United States Code.''.

SEC. 205. MODIFICATION OF TIMING OF LUMP-SUM PAYMENT OF JUDGES' ACCRUED 
              ANNUAL LEAVE.

    (a) In General.--Section 7443 (relating to membership of the Tax 
Court) is amended by adding at the end the following new subsection:
    ``(h) Lump-Sum Payment of Judges' Accrued Annual Leave.--
Notwithstanding the provisions of sections 5551 and 6301 of title 5, 
United States Code, when an individual subject to the leave system 
provided in chapter 63 of that title is appointed by the President to 
be a judge of the Tax Court, the individual shall be entitled to 
receive, upon appointment to the Tax Court, a lump-sum payment from the 
Tax Court of the accumulated and accrued current annual leave standing 
to the individual's credit as certified by the agency from which the 
individual resigned.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to any judge of the United States Tax Court who has an outstanding 
leave balance on the date of the enactment of this Act and to any 
individual appointed by the President to serve as a judge of the United 
States Tax Court after such date.

SEC. 206. PARTICIPATION OF TAX COURT JUDGES IN THE THRIFT SAVINGS PLAN.

    (a) In General.--Section 7447 (relating to retirement of judges), 
as amended by this Act, is amended by adding at the end the following 
new subsection:
    ``(k) Thrift Savings Plan.--
            ``(1) Election to contribute.--
                    ``(A) In general.--A judge of the Tax Court may 
                elect to contribute to the Thrift Savings Fund 
                established by section 8437 of title 5, United States 
                Code.
                    ``(B) Period of election.--An election may be made 
                under this paragraph as provided under section 8432(b) 
                of title 5, United States Code, for individuals subject 
                to chapter 84 of such title.
            ``(2) Applicability of title 5 provisions.--Except as 
        otherwise provided in this subsection, the provisions of 
        subchapters III and VII of chapter 84 of title 5, United States 
        Code, shall apply with respect to a judge who makes an election 
        under paragraph (1).
            ``(3) Special rules.--
                    ``(A) Amount contributed.--The amount contributed 
                by a judge to the Thrift Savings Fund in any pay period 
                shall not exceed the maximum percentage of such judge's 
                basic pay for such period as allowable under section 
                8440f of title 5, United States Code. Basic pay does 
                not include any retired pay paid pursuant to this 
                section.
                    ``(B) Contributions for benefit of judge.--No 
                contributions may be made for the benefit of a judge 
                under section 8432(c) of title 5, United States Code.
                    ``(C) Applicability of section 8433(b) of title 5 
                whether or not judge retires.--Section 8433(b) of title 
                5, United States Code, applies with respect to a judge 
                who makes an election under paragraph (1) and who 
                either--
                            ``(i) retires under subsection (b), or
                            ``(ii) ceases to serve as a judge of the 
                        Tax Court but does not retire under subsection 
                        (b).
                Retirement under subsection (b) is a separation from 
                service for purposes of subchapters III and VII of 
                chapter 84 of that title.
                    ``(D) Applicability of section 8351(b)(5) of title 
                5.--The provisions of section 8351(b)(5) of title 5, 
                United States Code, shall apply with respect to a judge 
                who makes an election under paragraph (1).
                    ``(E) Exception.--Notwithstanding subparagraph (C), 
                if any judge retires under this section, or resigns 
                without having met the age and service requirements set 
                forth under subsection (b)(2), and such judge's 
                nonforfeitable account balance is less than an amount 
                that the Executive Director of the Office of Personnel 
                Management prescribes by regulation, the Executive 
                Director shall pay the nonforfeitable account balance 
                to the participant in a single payment.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 207. EXEMPTION OF TEACHING COMPENSATION OF RETIRED JUDGES FROM 
              LIMITATION ON OUTSIDE EARNED INCOME.

    (a) In General.--Section 7447 (relating to retirement of judges), 
as amended by this Act, is amended by adding at the end the following 
new subsection:
    ``(l) Teaching Compensation of Retired Judges.--For purposes of the 
limitation under section 501(a) of the Ethics in Government Act of 1978 
(5 U.S.C. App.), any compensation for teaching approved under section 
502(a)(5) of such Act shall not be treated as outside earned income 
when received by a judge of the Tax Court who has retired under 
subsection (b) for teaching performed during any calendar year for 
which such a judge has met the requirements of subsection (c), as 
certified by the chief judge of the Tax Court.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to any individual serving as a retired judge of the United States Tax 
Court on or after the date of the enactment of this Act.

SEC. 208. GENERAL PROVISIONS RELATING TO MAGISTRATE JUDGES OF THE TAX 
              COURT.

    (a) Title of Special Trial Judge Changed to Magistrate Judge of the 
Tax Court.--The heading of section 7443A is amended to read as follows:

``SEC. 7443A. MAGISTRATE JUDGES OF THE TAX COURT.''.

    (b) Appointment, Tenure, and Removal.--Subsection (a) of section 
7443A is amended to read as follows:
    ``(a) Appointment, Tenure, and Removal.--
            ``(1) Appointment.--The chief judge may, from time to time, 
        appoint and reappoint magistrate judges of the Tax Court for a 
        term of 8 years. The magistrate judges of the Tax Court shall 
        proceed under such rules as may be promulgated by the Tax 
        Court.
            ``(2) Removal.--Removal of a magistrate judge of the Tax 
        Court during the term for which he or she is appointed shall be 
        only for incompetency, misconduct, neglect of duty, or physical 
        or mental disability, but the office of a magistrate judge of 
        the Tax Court shall be terminated if the judges of the Tax 
        Court determine that the services performed by the magistrate 
        judge of the Tax Court are no longer needed. Removal shall not 
        occur unless a majority of all the judges of the Tax Court 
        concur in the order of removal. Before any order of removal 
        shall be entered, a full specification of the charges shall be 
        furnished to the magistrate judge of the Tax Court, and he or 
        she shall be accorded by the judges of the Tax Court an 
        opportunity to be heard on the charges.''.
    (c) Salary.--Section 7443A(d) (relating to salary) is amended by 
striking ``90'' and inserting ``92''.
    (d) Exemption From Federal Leave Provisions.--Section 7443A is 
amended by adding at the end the following new subsection:
    ``(f) Exemption From Federal Leave Provisions.--
            ``(1) In general.--A magistrate judge of the Tax Court 
        appointed under this section shall be exempt from the 
        provisions of subchapter I of chapter 63 of title 5, United 
        States Code.
            ``(2) Treatment of unused leave.--
                    ``(A) After service as magistrate judge.--If an 
                individual who is exempted under paragraph (1) from the 
                subchapter referred to in such paragraph was previously 
                subject to such subchapter and, without a break 
in service, again becomes subject to such subchapter on completion of 
the individual's service as a magistrate judge, the unused annual leave 
and sick leave standing to the individual's credit when such individual 
was exempted from this subchapter is deemed to have remained to the 
individual's credit.
                    ``(B) Computation of annuity.--In computing an 
                annuity under section 8339 of title 5, United States 
                Code, the total service of an individual specified in 
                subparagraph (A) who retires on an immediate annuity or 
                dies leaving a survivor or survivors entitled to an 
                annuity includes, without regard to the limitations 
                imposed by subsection (f) of such section 8339, the 
                days of unused sick leave standing to the individual's 
                credit when such individual was exempted from 
                subchapter I of chapter 63 of title 5, United States 
                Code, except that these days will not be counted in 
                determining average pay or annuity eligibility.
                    ``(C) Lump sum payment.--Any accumulated and 
                current accrued annual leave or vacation balances 
                credited to a magistrate judge as of the date of the 
                enactment of this subsection shall be paid in a lump 
                sum at the time of separation from service pursuant to 
                the provisions and restrictions set forth in section 
                5551 of title 5, United States Code, and related 
                provisions referred to in such section.''.
    (e) Conforming Amendments.--
            (1) The heading of subsection (b) of section 7443A is 
        amended by striking ``Special Trial Judges'' and inserting 
        ``Magistrate Judges of the Tax Court''.
            (2) Section 7443A(b) is amended by striking ``special trial 
        judges of the court'' and inserting ``magistrate judges of the 
        Tax Court''.
            (3) Subsections (c) and (d) of section 7443A are amended by 
        striking ``special trial judge'' and inserting ``magistrate 
        judge of the Tax Court'' each place it appears.
            (4) Section 7443A(e) is amended by striking ``special trial 
        judges'' and inserting ``magistrate judges of the Tax Court''.
            (5) Section 7456(a) is amended by striking ``special trial 
        judge'' each place it appears and inserting ``magistrate 
        judge''.
            (6) Subsection (c) of section 7471 is amended--
                    (A) by striking the subsection heading and 
                inserting ``Magistrate Judges of the Tax Court.--'', 
                and
                    (B) by striking ``special trial judges'' and 
                inserting ``magistrate judges''.

SEC. 209. ANNUITIES TO SURVIVING SPOUSES AND DEPENDENT CHILDREN OF 
              MAGISTRATE JUDGES OF THE TAX COURT.

    (a) Definitions.--Section 7448(a) (relating to definitions), as 
amended by this Act, is amended by redesignating paragraphs (5), (6), 
(7), and (8) as paragraphs (7), (8), (9), and (10), respectively, and 
by inserting after paragraph (4) the following new paragraphs:
            ``(5) The term `magistrate judge' means a judicial officer 
        appointed pursuant to section 7443A, including any individual 
        receiving an annuity under section 7443B, or chapters 83 or 84, 
        as the case may be, of title 5, United States Code, whether or 
        not performing judicial duties under section 7443C.
            ``(6) The term `magistrate judge's salary' means the salary 
        of a magistrate judge received under section 7443A(d), any 
        amount received as an annuity under section 7443B, or chapters 
        83 or 84, as the case may be, of title 5, United States Code, 
        and compensation received under section 7443C.''.
    (b) Election.--Subsection (b) of section 7448 (relating to 
annuities to surviving spouses and dependent children of judges) is 
amended--
            (1) by striking the subsection heading and inserting the 
        following:
    ``(b) Election.--
            ``(1) Judges.--'',
            (2) by moving the text 2 ems to the right, and
            (3) by adding at the end the following new paragraph:
            ``(2) Magistrate judges.--Any magistrate judge may by 
        written election filed with the chief judge bring himself or 
        herself within the purview of this section. Such election shall 
        be filed not later than the later of 6 months after--
                    ``(A) 6 months after the date of the enactment of 
                this paragraph,
                    ``(B) the date the judge takes office, or
                    ``(C) the date the judge marries.''.
    (c) Conforming Amendments.--
            (1) The heading of section 7448 is amended by inserting 
        ``and magistrate judges'' after ``judges''.
            (2) The item relating to section 7448 in the table of 
        sections for part I of subchapter C of chapter 76 is amended by 
        inserting ``and magistrate judges'' after ``judges''.
            (3) Subsections (c)(1), (d), (f), (g), (h), (j), (m), (n), 
        and (u) of section 7448, as amended by this Act, are each 
        amended--
                    (A) by inserting ``or magistrate judge'' after 
                ``judge'' each place it appears other than in the 
                phrase ``chief judge'', and
                    (B) by inserting ``or magistrate judge's'' after 
                ``judge's'' each place it appears.
            (4) Section 7448(c) is amended--
                    (A) in paragraph (1), by striking ``Tax Court 
                judges'' and inserting ``Tax Court judicial officers'',
                    (B) in paragraph (2)--
                            (i) in subparagraph (A), by inserting ``and 
                        section 7443A(d)'' after ``(a)(4)'', and
                            (ii) in subparagraph (B), by striking 
                        ``subsection (a)(4)'' and inserting 
                        ``subsections (a)(4) and (a)(6)''.
            (5) Section 7448(g) is amended by inserting ``or section 
        7443B'' after ``section 7447'' each place it appears, and by 
        inserting ``or an annuity'' after ``retired pay''.
            (6) Section 7448(j)(1) is amended--
                    (A) in subparagraph (A), by striking ``service or 
                retired'' and inserting ``service, retired'', and by 
                inserting ``, or receiving any annuity under section 
                7443B or chapters 83 or 84 of title 5, United States 
                Code,'' after ``section 7447'', and
                    (B) in the last sentence, by striking ``subsections 
                (a)(6) and (7)'' and inserting ``paragraphs (8) and (9) 
                of subsection (a)''.
            (7) Section 7448(m)(1), as amended by this Act, is 
        amended--
                    (A) by inserting ``or any annuity under section 
                7443B or chapters 83 or 84 of title 5, United States 
                Code'' after ``7447(d)'', and
                    (B) by inserting ``or 7443B(m)(1)(B) after 
                ``7447(f)(4)''.
            (8) Section 7448(n) is amended by inserting ``his years of 
        service pursuant to any appointment under section 7443A,'' 
        after ``of the Tax Court,''.
            (9) Section 3121(b)(5)(E) is amended by inserting ``or 
        magistrate judge'' before ``of the United States Tax Court''.
            (10) Section 210(a)(5)(E) of the Social Security Act is 
        amended by inserting ``or magistrate judge'' before ``of the 
        United States Tax Court''.

SEC. 210. RETIREMENT AND ANNUITY PROGRAM.

    (a) Retirement and Annuity Program.--Part I of subchapter C of 
chapter 76 is amended by inserting after section 7443A the following 
new section:

``SEC. 7443B. RETIREMENT FOR MAGISTRATE JUDGES OF THE TAX COURT.

    ``(a) Retirement Based on Years of Service.--A magistrate judge of 
the Tax Court to whom this section applies and who retires from office 
after attaining the age of 65 years and serving at least 14 years, 
whether continuously or otherwise, as such magistrate judge shall, 
subject to subsection (f), be entitled to receive, during the remainder 
of the magistrate judge's lifetime, an annuity equal to the salary 
being received at the time the magistrate judge leaves office.
    ``(b) Retirement Upon Failure of Reappointment.--A magistrate judge 
of the Tax Court to whom this section applies who is not reappointed 
following the expiration of the term of office of such magistrate 
judge, and who retires upon the completion of the term shall, subject 
to subsection (f), be entitled to receive, upon attaining the age of 65 
years and during the remainder of such magistrate judge's lifetime, an 
annuity equal to that portion of the salary being received at the time 
the magistrate judge leaves office which the aggregate number of years 
of service, not to exceed 14, bears to 14, if--
            ``(1) such magistrate judge has served at least 1 full term 
        as a magistrate judge, and
            ``(2) not earlier than 9 months before the date on which 
        the term of office of such magistrate judge expires, and not 
        later than 6 months before such date, such magistrate judge 
        notified the chief judge of the Tax Court in writing that such 
        magistrate judge was willing to accept reappointment to the 
        position in which such magistrate judge was serving.
    ``(c) Service of at Least 8 Years.--A magistrate judge of the Tax 
Court to whom this section applies and who retires after serving at 
least 8 years, whether continuously or otherwise, as such a magistrate 
judge shall, subject to subsection (f), be entitled to receive, upon 
attaining the age of 65 years and during the remainder of the 
magistrate judge's lifetime, an annuity equal to that portion of the 
salary being received at the time the magistrate judge leaves office 
which the aggregate number of years of service, not to exceed 14, bears 
to 14. Such annuity shall be reduced by \1/6\ of 1 percent for each 
full month such magistrate judge was under the age of 65 at the time 
the magistrate judge left office, except that such reduction shall not 
exceed 20 percent.
    ``(d) Retirement for Disability.--A magistrate judge of the Tax 
Court to whom this section applies, who has served at least 5 years, 
whether continuously or otherwise, as such a magistrate judge, and who 
retires or is removed from office upon the sole ground of mental or 
physical disability shall, subject to subsection (f), be entitled to 
receive, during the remainder of the magistrate judge's lifetime, an 
annuity equal to 40 percent of the salary being received at the time of 
retirement or removal or, in the case of a magistrate judge who has 
served for at least 10 years, an amount equal to that proportion of the 
salary being received at the time of retirement or removal which the 
aggregate number of years of service, not to exceed 14, bears to 14.
    ``(e) Cost-of-Living Adjustments.--A magistrate judge of the Tax 
Court who is entitled to an annuity under this section is also entitled 
to a cost-of-living adjustment in such annuity, calculated and payable 
in the same manner as adjustments under section 8340(b) of title 5, 
United States Code, except that any such annuity, as increased under 
this subsection, may not exceed the salary then payable for the 
position from which the magistrate judge retired or was removed.
    ``(f) Election; Annuity in Lieu of Other Annuities.--
            ``(1) In general.--A magistrate judge of the Tax Court 
        shall be entitled to an annuity under this section if the 
        magistrate judge elects an annuity under this section by 
        notifying the chief judge of the Tax Court not later than the 
        later of--
                    ``(A) 5 years after the magistrate judge of the Tax 
                Court begins judicial service, or
                    ``(B) 5 years after the date of the enactment of 
                this subsection.
        Such notice shall be given in accordance with procedures 
        prescribed by the Tax Court.
            ``(2) Annuity in lieu of other annuity.--A magistrate judge 
        who elects to receive an annuity under this section shall not 
        be entitled to receive--
                    ``(A) any annuity to which such magistrate judge 
                would otherwise have been entitled under subchapter III 
                of chapter 83, or under chapter 84 (except for 
                subchapters III and VII), of title 5, United States 
                Code, for service performed as a magistrate or 
                otherwise,
                    ``(B) an annuity or salary in senior status or 
                retirement under section 371 or 372 of title 28, United 
                States Code,
                    ``(C) retired pay under section 7447, or
                    ``(D) retired pay under section 7296 of title 38, 
                United States Code.
            ``(3) Coordination with title 5.--A magistrate judge of the 
        Tax Court who elects to receive an annuity under this section--
                    ``(A) shall not be subject to deductions and 
                contributions otherwise required by section 8334(a) of 
                title 5, United States Code,
                    ``(B) shall be excluded from the operation of 
                chapter 84 (other than subchapters III and VII) of such 
                title 5, and
                    ``(C) is entitled to a lump-sum credit under 
                section 8342(a) or 8424 of such title 5, as the case 
                may be.
    ``(g) Calculation of Service.--For purposes of calculating an 
annuity under this section--
            ``(1) service as a magistrate judge of the Tax Court to 
        whom this section applies may be credited, and
            ``(2) each month of service shall be credited as \1/12\ of 
        a year, and the fractional part of any month shall not be 
        credited.
    ``(h) Covered Positions and Service.--This section applies to any 
magistrate judge of the Tax Court or special trial judge of the Tax 
Court appointed under this subchapter, but only with respect to service 
as such a magistrate judge or special trial judge after a date not 
earlier than 9\1/2\ years before the date of the enactment of this 
subsection.
    ``(i) Payments Pursuant to Court Order.--
            ``(1) In general.--Payments under this section which would 
        otherwise be made to a magistrate judge of the Tax Court based 
        upon his or her service shall be paid (in whole or in part) by 
        the chief judge of the Tax Court to another person if and to 
        the extent expressly provided for in the terms of any court 
        decree of divorce, annulment, or legal separation, or the terms 
        of any court order or court-approved property settlement 
        agreement incident to any court decree of divorce, annulment, 
        or legal separation. Any payment under this paragraph to a 
        person bars recovery by any other person.
            ``(2) Requirements for payment.--Paragraph (1) shall apply 
        only to payments made by the chief judge of the Tax Court after 
        the date of receipt by the chief judge of written notice of 
        such decree, order, or agreement, and such additional 
        information as the chief judge may prescribe.
            ``(3) Court defined.--For purposes of this subsection, the 
        term `court' means any court of any State, the District of 
        Columbia, the Commonwealth of Puerto Rico, Guam, the Northern 
        Mariana Islands, or the Virgin Islands, and any Indian tribal 
        court or courts of Indian offense.
    ``(j) Deductions, Contributions, and Deposits.--
            ``(1) Deductions.--Beginning with the next pay period after 
        the chief judge of the Tax Court receives a notice under 
        subsection (f) that a magistrate judge of the Tax Court has 
        elected an annuity under this section, the chief judge shall 
        deduct and withhold 1 percent of the salary of such magistrate 
        judge. Amounts shall be so deducted and withheld in a manner 
        determined by the chief judge. Amounts deducted and withheld 
        under this subsection shall be deposited in the Treasury of the 
        United States to the credit of the Tax Court Judicial Officers' 
        Retirement Fund. Deductions under this subsection from the 
        salary of a magistrate judge shall terminate upon the 
        retirement of the magistrate judge or upon completion of 14 
        years of service for which contributions under this section 
        have been made, whether continuously or otherwise, as 
        calculated under subsection (g), whichever occurs first.
            ``(2) Consent to deductions; discharge of claims.--Each 
        magistrate judge of the Tax Court who makes an election under 
        subsection (f) shall be deemed to consent and agree to the 
        deductions from salary which are made under paragraph (1). 
        Payment of such salary less such deductions (and any deductions 
        made under section 7448) is a full and complete discharge and 
        acquittance of all claims and demands for all services rendered 
        by such magistrate judge during the period covered by such 
        payment, except the right to those benefits to which the 
        magistrate judge is entitled under this section (and section 
        7448).
    ``(k) Deposits for Prior Service.--Each magistrate judge of the Tax 
Court who makes an election under subsection (f) may deposit, for 
service performed before such election for which contributions may be 
made under this section, an amount equal to 1 percent of the salary 
received for that service. Credit for any period covered by that 
service may not be allowed for purposes of an annuity under this 
section until a deposit under this subsection has been made for that 
period.
    ``(l) Individual Retirement Records.--The amounts deducted and 
withheld under subsection (j), and the amounts deposited under 
subsection (k), shall be credited to individual accounts in the name of 
each magistrate judge of the Tax Court from whom such amounts are 
received, for credit to the Tax Court Judicial Officers' Retirement 
Fund.
    ``(m) Annuities Affected in Certain Cases.--
            ``(1) 1-year forfeiture for failure to perform judicial 
        duties.--Subject to paragraph (3), any magistrate judge of the 
        Tax Court who retires under this section and who fails to 
        perform judicial duties required of such individual by section 
        7443C shall forfeit all rights to an annuity under this section 
        for a 1-year period which begins on the 1st day on which such 
        individual fails to perform such duties.
            ``(2) Permanent forfeiture of retired pay where certain 
        non-government services performed.--Subject to paragraph (3), 
        any magistrate judge of the Tax Court who retires under this 
        section and who thereafter performs (or supervises or directs 
        the performance of) legal or accounting services in the field 
        of Federal taxation for the individual's client, the 
        individual's employer, or any of such employer's clients, shall 
forfeit all rights to an annuity under this section for all periods 
beginning on or after the first day on which the individual performs 
(or supervises or directs the performance of) such services. The 
preceding sentence shall not apply to any civil office or employment 
under the Government of the United States.
            ``(3) Forfeitures not to apply where individual elects to 
        freeze amount of annuity.--
                    ``(A) In general.--If a magistrate judge of the Tax 
                Court makes an election under this paragraph--
                            ``(i) paragraphs (1) and (2) (and section 
                        7443C) shall not apply to such magistrate judge 
                        beginning on the date such election takes 
                        effect, and
                            ``(ii) the annuity payable under this 
                        section to such magistrate judge, for periods 
                        beginning on or after the date such election 
                        takes effect, shall be equal to the annuity to 
                        which such magistrate judge is entitled on the 
                        day before such effective date.
                    ``(B) Election requirements.--An election under 
                subparagraph (A)--
                            ``(i) may be made by a magistrate judge of 
                        the Tax Court eligible for retirement under 
                        this section, and
                            ``(ii) shall be filed with the chief judge 
                        of the Tax Court.
                Such an election, once it takes effect, shall be 
                irrevocable.
                    ``(C) Effective date of election.--Any election 
                under subparagraph (A) shall take effect on the first 
                day of the first month following the month in which the 
                election is made.
            ``(4) Accepting other employment.--Any magistrate judge of 
        the Tax Court who retires under this section and thereafter 
        accepts compensation for civil office or employment under the 
        United States Government (other than for the performance of 
        functions as a magistrate judge of the Tax Court under section 
        7443C) shall forfeit all rights to an annuity under this 
        section for the period for which such compensation is received. 
        For purposes of this paragraph, the term `compensation' 
        includes retired pay or salary received in retired status.
    ``(n) Lump-Sum Payments.--
            ``(1) Eligibility.--
                    ``(A) In general.--Subject to paragraph (2), an 
                individual who serves as a magistrate judge of the Tax 
                Court and--
                            ``(i) who leaves office and is not 
                        reappointed as a magistrate judge of the Tax 
                        Court for at least 31 consecutive days,
                            ``(ii) who files an application with the 
                        chief judge of the Tax Court for payment of a 
                        lump-sum credit,
                            ``(iii) is not serving as a magistrate 
                        judge of the Tax Court at the time of filing of 
                        the application, and
                            ``(iv) will not become eligible to receive 
                        an annuity under this section within 31 days 
                        after filing the application,
                is entitled to be paid the lump-sum credit. Payment of 
                the lump-sum credit voids all rights to an annuity 
                under this section based on the service on which the 
                lump-sum credit is based, until that individual resumes 
                office as a magistrate judge of the Tax Court.
                    ``(B) Payment to survivors.--Lump-sum benefits 
                authorized by subparagraphs (C), (D), and (E) of this 
                paragraph shall be paid to the person or persons 
                surviving the magistrate judge of the Tax Court and 
                alive on the date title to the payment arises, in the 
                order of precedence set forth in subsection (o) of 
                section 376 of title 28, United States Code, and in 
                accordance with the last 2 sentences of paragraph (1) 
                of that subsection. For purposes of the preceding 
                sentence, the term `judicial official' as used in 
                subsection (o) of such section 376 shall be deemed to 
                mean `magistrate judge of the Tax Court' and the terms 
                `Administrative Office of the United States Courts' and 
                `Director of the Administrative Office of the United 
                States Courts' shall be deemed to mean `chief judge of 
                the Tax Court'.
                    ``(C) Payment upon death of judge before receipt of 
                annuity.--If a magistrate judge of the Tax Court dies 
                before receiving an annuity under this section, the 
                lump-sum credit shall be paid.
                    ``(D) Payment of annuity remainder.--If all annuity 
                rights under this section based on the service of a 
                deceased magistrate judge of the Tax Court terminate 
                before the total annuity paid equals the lump-sum 
                credit, the difference shall be paid.
                    ``(E) Payment upon death of judge during receipt of 
                annuity.--If a magistrate judge of the Tax Court who is 
                receiving an annuity under this section dies, any 
                accrued annuity benefits remaining unpaid shall be 
                paid.
                    ``(F) Payment upon termination.--Any accrued 
                annuity benefits remaining unpaid on the termination, 
                except by death, of the annuity of a magistrate judge 
                of the Tax Court shall be paid to that individual.
                    ``(G) Payment upon accepting other employment.--
                Subject to paragraph (2), a magistrate judge of the Tax 
                Court who forfeits rights to an annuity under 
                subsection (m)(4) before the total annuity paid equals 
                the lump-sum credit shall be entitled to be paid the 
                difference if the magistrate judge of the Tax Court 
                files an application with the chief judge of the Tax 
                Court for payment of that difference. A payment under 
                this subparagraph voids all rights to an annuity on 
                which the payment is based.
            ``(2) Spouses and former spouses.--
                    ``(A) In general.--Payment of the lump-sum credit 
                under paragraph (1)(A) or a payment under paragraph 
                (1)(G)--
                            ``(i) may be made only if any current 
                        spouse and any former spouse of the magistrate 
                        judge of the Tax Court are notified of the 
                        magistrate judge's application, and
                            ``(ii) shall be subject to the terms of a 
                        court decree of divorce, annulment, or legal 
                        separation, or any court or court approved 
                        property settlement agreement incident to such 
                        decree, if--
                                    ``(I) the decree, order, or 
                                agreement expressly relates to any 
                                portion of the lump-sum credit or other 
                                payment involved, and
                                    ``(II) payment of the lump-sum 
                                credit or other payment would 
                                extinguish entitlement of the 
                                magistrate judge's spouse or former 
                                spouse to any portion of an annuity 
                                under subsection (i).
                    ``(B) Notification.--Notification of a spouse or 
                former spouse under this paragraph shall be made in 
                accordance with such procedures as the chief judge of 
                the Tax Court shall prescribe. The chief judge may 
                provide under such procedures that subparagraph (A)(i) 
                may be waived with respect to a spouse or former spouse 
                if the magistrate judge establishes to the satisfaction 
                of the chief judge that the whereabouts of such spouse 
                or former spouse cannot be determined.
                    ``(C) Resolution of 2 or more orders.--The chief 
                judge shall prescribe procedures under which this 
                paragraph shall be applied in any case in which the 
                chief judge receives 2 or more orders or decrees 
                described in subparagraph (A).
            ``(3) Definition.--For purposes of this subsection, the 
        term `lump-sum credit' means the unrefunded amount consisting 
        of--
                    ``(A) retirement deductions made under this section 
                from the salary of a magistrate judge of the Tax Court,
                    ``(B) amounts deposited under subsection (k) by a 
                magistrate judge of the Tax Court covering earlier 
                service, and
                    ``(C) interest on the deductions and deposits 
                which, for any calendar year, shall be equal to the 
                overall average yield to the Tax Court Judicial 
                Officers' Retirement Fund during the preceding fiscal 
                year from all obligations purchased by the Secretary 
                during such fiscal year under subsection (o); but does 
                not include interest--
                            ``(i) if the service covered thereby 
                        aggregates 1 year or less, or
                            ``(ii) for the fractional part of a month 
                        in the total service.
    ``(o) Tax Court Judicial Officers' Retirement Fund.--
            ``(1) Establishment.--There is established in the Treasury 
        a fund which shall be known as the `Tax Court Judicial 
        Officers' Retirement Fund'. Amounts in the Fund are authorized 
        to be appropriated for the payment of annuities, refunds, and 
        other payments under this section.
            ``(2) Investment of fund.--The Secretary shall invest, in 
        interest bearing securities of the United States, such 
        currently available portions of the Tax Court Judicial 
        Officers' Retirement Fund as are not immediately required for 
        payments from the Fund. The income derived from these 
        investments constitutes a part of the Fund.
            ``(3) Unfunded liability.--
                    ``(A) In general.--There are authorized to be 
                appropriated to the Tax Court Judicial Officers' 
                Retirement Fund amounts required to reduce to zero the 
                unfunded liability of the Fund.
                    ``(B) Unfunded liability.--For purposes of 
                subparagraph (A), the term `unfunded liability' means 
                the estimated excess, determined on an annual basis in 
                accordance with the provisions of section 9503 of title 
                31, United States Code, of the present value of all 
                benefits payable from the Tax Court Judicial Officers' 
                Retirement Fund over the sum of--
                            ``(i) the present value of deductions to be 
                        withheld under this section from the future 
                        basic pay of magistrate judges of the Tax 
                        Court, plus
                            ``(ii) the balance in the Fund as of the 
                        date the unfunded liability is determined.
    ``(p) Participation in Thrift Savings Plan.--
            ``(1) Election to contribute.--
                    ``(A) In general.--A magistrate judge of the Tax 
                Court who elects to receive an annuity under this 
                section or under section 211 of the United States Tax 
                Court Modernization Act may elect to contribute an 
                amount of such individual's basic pay to the Thrift 
                Savings Fund established by section 8437 of title 5, 
                United States Code.
                    ``(B) Period of election.--An election may be made 
                under this paragraph as provided under section 8432(b) 
                of title 5, United States Code, for individuals subject 
                to chapter 84 of such title.
            ``(2) Applicability of title 5 provisions.--Except as 
        otherwise provided in this subsection, the provisions of 
        subchapters III and VII of chapter 84 of title 5, United States 
        Code, shall apply with respect to a magistrate judge who makes 
        an election under paragraph (1).
            ``(3) Special rules.--
                    ``(A) Amount contributed.--The amount contributed 
                by a magistrate judge to the Thrift Savings Fund in any 
                pay period shall not exceed the maximum percentage of 
                such judge's basic pay for such pay period as allowable 
                under section 8440f of title 5, United States Code.
                    ``(B) Contributions for benefit of judge.--No 
                contributions may be made for the benefit of a 
                magistrate judge under section 8432(c) of title 5, 
                United States Code.
                    ``(C) Applicability of section 8433(b) of title 
                5.--Section 8433(b) of title 5, United States Code, 
                applies with respect to a magistrate judge who makes an 
                election under paragraph (1) and--
                            ``(i) who retires entitled to an immediate 
                        annuity under this section (including a 
                        disability annuity under subsection (d) of this 
                        section) or section 211 of the United States 
                        Tax Court Modernization Act,
                            ``(ii) who retires before attaining age 65 
                        but is entitled, upon attaining age 65, to an 
                        annuity under this section or section 211 of 
                        the United States Tax Court Modernization Act, 
                        or
                            ``(iii) who retires before becoming 
                        entitled to an immediate annuity, or an annuity 
                        upon attaining age 65, under this section or 
                        section 211 of the United States Tax Court 
                        Modernization Act.
                    ``(D) Separation from service.--With respect to a 
                magistrate judge to whom this subsection applies, 
                retirement under this section or section 211 of the 
                United States Tax Court Modernization Act is a 
                separation from service for purposes of subchapters III 
                and VII of chapter 84 of title 5, United States Code.
            ``(4) Definitions.--For purposes of this subsection, the 
        terms `retirement' and `retire' include removal from office 
        under section 7443A(a)(2) on the sole ground of mental or 
        physical disability.
            ``(5) Offset.--In the case of a magistrate judge who 
        receives a distribution from the Thrift Savings Fund and who 
        later receives an annuity under this section, that annuity 
        shall be offset by an amount equal to the amount which 
        represents the Government's contribution to that person's 
        Thrift Savings Account, without regard to earnings attributable 
        to that amount. Where such an offset would exceed 50 percent of 
        the annuity to be received in the first year, the offset may be 
        divided equally over the first 2 years in which that person 
        receives the annuity.
            ``(6) Exception.--Notwithstanding clauses (i) and (ii) of 
        paragraph (3)(C), if any magistrate judge retires under 
        circumstances making such magistrate judge eligible to make an 
        election under subsection (b) of section 8433 of title 5, 
        United States Code, and such magistrate judge's nonforfeitable 
        account balance is less than an amount that the Executive 
        Director of the Office of Personnel Management prescribes by 
        regulation, the Executive Director shall pay the nonforfeitable 
        account balance to the participant in a single payment.''.
    (b) Conforming Amendment.--The table of sections for part I of 
subchapter C of chapter 76 is amended by inserting after the item 
relating to section 7443A the following new item:

                              ``Sec. 7443B. Retirement for magistrate 
                                        judges of the Tax Court.''.

SEC. 211. INCUMBENT MAGISTRATE JUDGES OF THE TAX COURT.

    (a) Retirement Annuity Under Title 5 and Section 7443B of the 
Internal Revenue Code of 1986.--A magistrate judge of the United States 
Tax Court in active service on the date of the enactment of this Act 
shall, subject to subsection (b), be entitled, in lieu of the annuity 
otherwise provided under the amendments made by this title, to--
            (1) an annuity under subchapter III of chapter 83, or under 
        chapter 84 (except for subchapters III and VII), of title 5, 
        United States Code, as the case may be, for creditable service 
        before the date on which service would begin to be credited for 
        purposes of paragraph (2), and
            (2) an annuity calculated under subsection (b) or (c) and 
        subsection (g) of section 7443B of the Internal Revenue Code of 
        1986, as added by this Act, for any service as a magistrate 
        judge of the United States Tax Court or special trial judge of 
        the United States Tax Court but only with respect to service as 
        such a magistrate judge or special trial judge after a date not 
        earlier than 9\1/2\ years prior to the date of the enactment of 
        this Act (as specified in the election pursuant to subsection 
        (b)) for which deductions and deposits are made under 
        subsections (j) and (k) of such section 7443B, as applicable, 
        without regard to the minimum number of years of service as 
        such a magistrate judge of the United States Tax Court, except 
        that--
                    (A) in the case of a magistrate judge who retired 
                with less than 8 years of service, the annuity under 
                subsection (c) of such section 7443B shall be equal to 
                that proportion of the salary being received at the 
                time the magistrate judge leaves office which the years 
                of service bears to 14, subject to a reduction in 
accordance with subsection (c) of such section 7443B if the magistrate 
judge is under age 65 at the time he or she leaves office, and
                    (B) the aggregate amount of the annuity initially 
                payable on retirement under this subsection may not 
                exceed the rate of pay for the magistrate judge which 
                is in effect on the day before the retirement becomes 
                effective.
    (b) Filing of Notice of Election.--A magistrate judge of the United 
States Tax Court shall be entitled to an annuity under this section 
only if the magistrate judge files a notice of that election with the 
chief judge of the United States Tax Court specifying the date on which 
service would begin to be credited under section 7443B of the Internal 
Revenue Code of 1986, as added by this Act, in lieu of chapter 83 or 
chapter 84 of title 5, United States Code. Such notice shall be filed 
in accordance with such procedures as the chief judge of the United 
States Tax Court shall prescribe.
    (c) Lump-Sum Credit Under Title 5.--A magistrate judge of the 
United States Tax Court who makes an election under subsection (b) 
shall be entitled to a lump-sum credit under section 8342 or 8424 of 
title 5, United States Code, as the case may be, for any service which 
is covered under section 7443B of the Internal Revenue Code of 1986, as 
added by this Act, pursuant to that election, and with respect to which 
any contributions were made by the magistrate judge under the 
applicable provisions of title 5, United States Code.
    (d) Recall.--With respect to any magistrate judge of the United 
States Tax Court receiving an annuity under this section who is 
recalled to serve under section 7443C of the Internal Revenue Code of 
1986, as added by this Act--
            (1) the amount of compensation which such recalled 
        magistrate judge receives under such section 7443C shall be 
        calculated on the basis of the annuity received under this 
        section, and
            (2) such recalled magistrate judge of the United States Tax 
        Court may serve as a reemployed annuitant to the extent 
        otherwise permitted under title 5, United States Code.
Section 7443B(m)(4) of the Internal Revenue Code of 1986, as added by 
this Act, shall not apply with respect to service as a reemployed 
annuitant described in paragraph (2).

SEC. 212. PROVISIONS FOR RECALL.

    (a) In General.--Part I of subchapter C of chapter 76, as amended 
by this Act, is amended by inserting after section 7443B the following 
new section:

``SEC. 7443C. RECALL OF MAGISTRATE JUDGES OF THE TAX COURT.

    ``(a) Recalling of Retired Magistrate Judges.--Any individual who 
has retired pursuant to section 7443B or the applicable provisions of 
title 5, United States Code, upon reaching the age and service 
requirements established therein, may at or after retirement be called 
upon by the chief judge of the Tax Court to perform such judicial 
duties with the Tax Court as may be requested of such individual for 
any period or periods specified by the chief judge; except that in the 
case of any such individual--
            ``(1) the aggregate of such periods in any 1 calendar year 
        shall not (without such individual's consent) exceed 90 
        calendar days, and
            ``(2) such individual shall be relieved of performing such 
        duties during any period in which illness or disability 
        precludes the performance of such duties.
Any act, or failure to act, by an individual performing judicial duties 
pursuant to this subsection shall have the same force and effect as if 
it were the act (or failure to act) of a magistrate judge of the Tax 
Court.
    ``(b) Compensation.--For the year in which a period of recall 
occurs, the magistrate judge shall receive, in addition to the annuity 
provided under the provisions of section 7443B or under the applicable 
provisions of title 5, United States Code, an amount equal to the 
difference between that annuity and the current salary of the office to 
which the magistrate judge is recalled. The annuity of the magistrate 
judge who completes that period of service, who is not recalled in a 
subsequent year, and who retired under section 7443B, shall be equal to 
the salary in effect at the end of the year in which the period of 
recall occurred for the office from which such individual retired.
    ``(c) Rulemaking Authority.--The provisions of this section may be 
implemented under such rules as may be promulgated by the Tax Court.''.
    (b) Conforming Amendment.--The table of sections for part I of 
subchapter C of chapter 76, as amended by this Act, is amended by 
inserting after the item relating to section 7443B the following new 
item:

                              ``Sec. 7443C. Recall of magistrate judges 
                                        of the Tax Court.''.

SEC. 213. EFFECTIVE DATE.

    Except as otherwise provided, the amendments made by this title 
shall take effect on the date of the enactment of this Act.

                                                        Calendar No. 96

109th CONGRESS

  1st Session

                                 S. 661

                          [Report No. 109-64]

_______________________________________________________________________

                                 A BILL

     To amend the Internal Revenue Code of 1986 to provide for the 
 modernization of the United States Tax Court, and for other purposes.

_______________________________________________________________________

                             April 28, 2005

                       Reported with an amendment
```