II 

109TH CONGRESS 

1ST SESSION S. 661

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 

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.

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

3 SECTION 1. SHORT TITLE; ETC. 

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

5 ‘‘United States Tax Court Modernization Act’’. 

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

9 to, or repeal of, a section or other provision, the reference 
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1 shall be considered to be made to a section or other provi2 sion of the Internal Revenue Code of 1986. 

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

4 this Act is as follows:

Sec. 1. Short title; etc. 

TITLE I—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.

5 TITLE I—TAX COURT 

6 PROCEDURE 

7 SEC. 101. JURISDICTION OF TAX COURT OVER COLLECTION 

8 DUE PROCESS CASES. 

9 (a) IN GENERAL.—Paragraph (1) of section 6330(d) 

10 (relating to proceeding after hearing) is amended to read 

11 as follows: 
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1 ‘‘(1) JUDICIAL REVIEW OF DETERMINATION.—

2 The person may, within 30 days of a determination 

3 under this section, appeal such determination to the 

4 Tax Court (and the Tax Court shall have jurisdic5 tion with respect to such matter).’’. 

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

7 this section shall apply to determinations made after the 

8 date which is 60 days after the date of the enactment of 

9 this Act. 

10 SEC. 102. AUTHORITY FOR SPECIAL TRIAL JUDGES TO 

11 HEAR AND DECIDE CERTAIN EMPLOYMENT 

12 STATUS CASES. 

13 (a) IN GENERAL.—Section 7443A(b) (relating to 

14 proceedings which may be assigned to special trial judges) 

15 is amended by striking ‘‘and’’ at the end of paragraph (4), 

16 by redesignating paragraph (5) as paragraph (6), and by 

17 inserting after paragraph (4) the following new paragraph: 

18 ‘‘(5) any proceeding under section 7436(c), 

19 and’’. 

20 (b) CONFORMING AMENDMENT.—Section 7443A(c) 

21 is amended by striking ‘‘or (4)’’ and inserting ‘‘(4), or 

22 (5)’’. 

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

24 this section shall apply to any proceeding under section 

25 7436(c) of the Internal Revenue Code of 1986 with re-
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1 spect to which a decision has not become final (as deter2 mined under section 7481 of such Code) before the date 

3 of the enactment of this Act. 

4 SEC. 103. CONFIRMATION OF AUTHORITY OF TAX COURT 

5 TO APPLY DOCTRINE OF EQUITABLE 

6 RECOUPMENT. 

7 (a) CONFIRMATION OF AUTHORITY OF TAX COURT

8 TO APPLY DOCTRINE OF EQUITABLE RECOUPMENT.—

9 Section 6214(b) (relating to jurisdiction over other years 

10 and quarters) is amended by adding at the end the fol11 lowing new sentence: ‘‘Notwithstanding the preceding sen12 tence, the Tax Court may apply the doctrine of equitable 

13 recoupment to the same extent that it is available in civil 

14 tax cases before the district courts of the United States 

15 and the United States Court of Federal Claims.’’. 

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

17 this section shall apply to any action or proceeding in the 

18 United States Tax Court with respect to which a decision 

19 has not become final (as determined under section 7481 

20 of the Internal Revenue Code of 1986) as of the date of 

21 the enactment of this Act.
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1 SEC. 104. TAX COURT FILING FEE IN ALL CASES COM2 MENCED BY FILING PETITION. 

3 (a) IN GENERAL.—Section 7451 (relating to fee for 

4 filing a Tax Court petition) is amended by striking all that 

5 follows ‘‘petition’’ and inserting a period. 

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

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

8 of this Act. 

9 SEC. 105. AMENDMENTS TO APPOINT EMPLOYEES. 

10 (a) IN GENERAL.—Subsection (a) of section 7471 

11 (relating to Tax Court employees) is amended to read as 

12 follows: 

13 ‘‘(a) APPOINTMENT AND COMPENSATION.—

14 ‘‘(1) CLERK.—The Tax Court may appoint a 

15 clerk without regard to the provisions of title 5, 

16 United States Code, governing appointments in the 

17 competitive service. The clerk shall serve at the 

18 pleasure of the Tax Court. 

19 ‘‘(2) LAW CLERKS AND SECRETARIES.—

20 ‘‘(A) IN GENERAL.—The judges and spe21 cial trial judges of the Tax Court may appoint 

22 law clerks and secretaries, in such numbers as 

23 the Tax Court may approve, without regard to 

24 the provisions of title 5, United States Code, 

25 governing appointments in the competitive serv-
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1 ice. Any such law clerk or secretary shall serve 

2 at the pleasure of the appointing judge. 

3 ‘‘(B) EXEMPTION FROM FEDERAL LEAVE

4 PROVISIONS.—A law clerk appointed under this 

5 subsection shall be exempt from the provisions 

6 of subchapter I of chapter 63 of title 5, United 

7 States Code. Any unused sick leave or annual 

8 leave standing to the employee’s credit as of the 

9 effective date of this subsection shall remain 

10 credited to the employee and shall be available 

11 to the employee upon separation from the Fed12 eral Government. 

13 ‘‘(3) OTHER EMPLOYEES.—The Tax Court may 

14 appoint necessary employees without regard to the 

15 provisions of title 5, United States Code, governing 

16 appointments in the competitive service. Such em17 ployees shall be subject to removal by the Tax 

18 Court. 

19 ‘‘(4) PAY.—The Tax Court may fix and adjust 

20 the compensation for the clerk and other employees 

21 of the Tax Court without regard to the provisions of 

22 chapter 51, subchapter III of chapter 53, or section 

23 5373 of title 5, United States Code. To the max24 imum extent feasible, the Tax Court shall com25 pensate employees at rates consistent with those for 
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1 employees holding comparable positions in the judi2 cial branch. 

3 ‘‘(5) PROGRAMS.—The Tax Court may establish 

4 programs for employee evaluations, incentive awards, 

5 flexible work schedules, premium pay, and resolution 

6 of employee grievances. 

7 ‘‘(6) DISCRIMINATION PROHIBITED.—The Tax 

8 Court shall—

9 ‘‘(A) prohibit discrimination on the basis 

10 of race, color, religion, age, sex, national origin, 

11 political affiliation, marital status, or handi12 capping condition; and 

13 ‘‘(B) promulgate procedures for resolving 

14 complaints of discrimination by employees and 

15 applicants for employment. 

16 ‘‘(7) EXPERTS AND CONSULTANTS.—The Tax 

17 Court may procure the services of experts and con18 sultants under section 3109 of title 5, United States 

19 Code. 

20 ‘‘(8) RIGHTS TO CERTAIN APPEALS RE21 SERVED.—Notwithstanding any other provision of 

22 law, an individual who is an employee of the Tax 

23 Court on the day before the effective date of this 

24 subsection and who, as of that day, was entitled 

25 to—
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1 ‘‘(A) appeal a reduction in grade or re2 moval to the Merit Systems Protection Board 

3 under chapter 43 of title 5, United States Code, 

4 ‘‘(B) appeal an adverse action to the Merit 

5 Systems Protection Board under chapter 75 of 

6 title 5, United States Code, 

7 ‘‘(C) appeal a prohibited personnel practice 

8 described under section 2302(b) of title 5, 

9 United States Code, to the Merit Systems Pro10 tection Board under chapter 77 of that title, 

11 ‘‘(D) make an allegation of a prohibited 

12 personnel practice described under section 

13 2302(b) of title 5, United States Code, with the 

14 Office of Special Counsel under chapter 12 of 

15 that title for action in accordance with that 

16 chapter, or 

17 ‘‘(E) file an appeal with the Equal Em18 ployment Opportunity Commission under part 

19 1614 of title 29 of the Code of Federal Regula20 tions, 

21 shall be entitled to file such appeal or make such an 

22 allegation so long as the individual remains an em23 ployee of the Tax Court. 

24 ‘‘(9) COMPETITIVE STATUS.—Notwithstanding 

25 any other provision of law, any employee of the Tax 
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1 Court who has completed at least 1 year of contin2 uous service under a non-temporary appointment 

3 with the Tax Court acquires a competitive status for 

4 appointment to any position in the competitive serv5 ice for which the employee possesses the required 

6 qualifications. 

7 ‘‘(10) MERIT SYSTEM PRINCIPLES; PROHIBITED

8 PERSONNEL PRACTICES; AND PREFERENCE ELIGI9 BLES.—Any personnel management system of the 

10 Tax Court shall—

11 ‘‘(A) include the principles set forth in sec12 tion 2301(b) of title 5, United States Code; 

13 ‘‘(B) prohibit personnel practices prohib14 ited under section 2302(b) of title 5, United 

15 States Code; and 

16 ‘‘(C) in the case of any individual who 

17 would be a preference eligible in the executive 

18 branch, the Tax Court will provide preference 

19 for that individual in a manner and to an ex20 tent consistent with preference accorded to 

21 preference eligibles in the executive branch.’’. 

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

23 this section shall take effect on the date the United States 

24 Tax Court adopts a personnel management system after 

25 the date of the enactment of this Act.
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1 SEC. 106. EXPANDED USE OF TAX COURT PRACTICE FEE 

2 FOR PRO SE TAXPAYERS. 

3 (a) IN GENERAL.—Section 7475(b) (relating to use 

4 of fees) is amended by inserting before the period at the 

5 end ‘‘and to provide services to pro se taxpayers’’. 

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

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

8 of this Act. 

9 TITLE II—TAX COURT PENSION 

10 AND COMPENSATION 

11 SEC. 201. ANNUITIES FOR SURVIVORS OF TAX COURT 

12 JUDGES WHO ARE ASSASSINATED. 

13 (a) ELIGIBILITY IN CASE OF DEATH BY ASSASSINA14 TION.—Subsection (h) of section 7448 (relating to annu15 ities to surviving spouses and dependent children of 

16 judges) is amended to read as follows: 

17 ‘‘(h) ENTITLEMENT TO ANNUITY.—

18 ‘‘(1) IN GENERAL.—

19 ‘‘(A) ANNUITY TO SURVIVING SPOUSE.—If 

20 a judge described in paragraph (2) is survived 

21 by a surviving spouse but not by a dependent 

22 child, there shall be paid to such surviving 

23 spouse an annuity beginning with the day of the 

24 death of the judge or following the surviving 

25 spouse’s attainment of the age of 50 years, 
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1 whichever is the later, in an amount computed 

2 as provided in subsection (m). 

3 ‘‘(B) ANNUITY TO CHILD.—If such a judge 

4 is survived by a surviving spouse and a depend5 ent child or children, there shall be paid to such 

6 surviving spouse an immediate annuity in an 

7 amount computed as provided in subsection 

8 (m), and there shall also be paid to or on behalf 

9 of each such child an immediate annuity equal 

10 to the lesser of—

11 ‘‘(i) 10 percent of the average annual 

12 salary of such judge (determined in accord13 ance with subsection (m)), or 

14 ‘‘(ii) 20 percent of such average an15 nual salary, divided by the number of such 

16 children. 

17 ‘‘(C) ANNUITY TO SURVIVING DEPENDENT

18 CHILDREN.—If such a judge leaves no surviving 

19 spouse but leaves a surviving dependent child or 

20 children, there shall be paid to or on behalf of 

21 each such child an immediate annuity equal to 

22 the lesser of—

23 ‘‘(i) 20 percent of the average annual 

24 salary of such judge (determined in accord25 ance with subsection (m)), or 
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1 ‘‘(ii) 40 percent of such average an2 nual salary, divided by the number of such 

3 children. 

4 ‘‘(2) COVERED JUDGES.—Paragraph (1) applies 

5 to any judge electing under subsection (b)—

6 ‘‘(A) who dies while a judge after having 

7 rendered at least 5 years of civilian service com8 puted as prescribed in subsection (n), for the 

9 last 5 years of which the salary deductions pro10 vided for by subsection (c)(1) or the deposits 

11 required by subsection (d) have actually been 

12 made or the salary deductions required by the 

13 civil service retirement laws have actually been 

14 made, or 

15 ‘‘(B) who dies by assassination after hav16 ing rendered less than 5 years of civilian service 

17 computed as prescribed in subsection (n) if, for 

18 the period of such service, the salary deductions 

19 provided for by subsection (c)(1) or the deposits 

20 required by subsection (d) have actually been 

21 made. 

22 ‘‘(3) TERMINATION OF ANNUITY.—

23 ‘‘(A) IN THE CASE OF A SURVIVING

24 SPOUSE.—The annuity payable to a surviving 

25 spouse under this subsection shall be terminable 
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1 upon such surviving spouse’s death or such sur2 viving spouse’s remarriage before attaining age 

3 55. 

4 ‘‘(B) IN THE CASE OF A CHILD.—The an5 nuity payable to a child under this subsection 

6 shall be terminable upon (i) the child attaining 

7 the age of 18 years, (ii) the child’s marriage, or 

8 (iii) the child’s death, whichever first occurs, ex9 cept that if such child is incapable of self-sup10 port by reason of mental or physical disability 

11 the child’s annuity shall be terminable only 

12 upon death, marriage, or recovery from such 

13 disability. 

14 ‘‘(C) IN THE CASE OF A DEPENDENT

15 CHILD AFTER DEATH OF SURVIVING SPOUSE.—

16 In case of the death of a surviving spouse of a 

17 judge leaving a dependent child or children of 

18 the judge surviving such spouse, the annuity of 

19 such child or children shall be recomputed and 

20 paid as provided in paragraph (1)(C). 

21 ‘‘(D) RECOMPUTATION.—In any case in 

22 which the annuity of a dependent child is termi23 nated under this subsection, the annuities of 

24 any remaining dependent child or children, 

25 based upon the service of the same judge, shall 
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1 be recomputed and paid as though the child 

2 whose annuity was so terminated had not sur3 vived such judge. 

4 ‘‘(4) SPECIAL RULE FOR ASSASSINATED

5 JUDGES.—In the case of a survivor or survivors of 

6 a judge described in paragraph (2)(B), there shall be 

7 deducted from the annuities otherwise payable under 

8 this section an amount equal to—

9 ‘‘(A) the amount of salary deductions pro10 vided for by subsection (c)(1) that would have 

11 been made if such deductions had been made 

12 for 5 years of civilian service computed as pre13 scribed in subsection (n) before the judge’s 

14 death, reduced by 

15 ‘‘(B) the amount of such salary deductions 

16 that were actually made before the date of the 

17 judge’s death.’’. 

18 (b) DEFINITION OF ASSASSINATION.—Section 

19 7448(a) (relating to definitions) is amended by adding at 

20 the end the following new paragraph: 

21 ‘‘(8) The terms ‘assassinated’ and ‘assassina22 tion’ mean the killing of a judge that is motivated 

23 by the performance by that judge of his or her offi24 cial duties.’’.
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1 (c) DETERMINATION OF ASSASSINATION.—Sub2 section (i) of section 7448 is amended—

3 (1) by striking the subsection heading and in4 serting the following: 

5 ‘‘(i) DETERMINATIONS BY CHIEF JUDGE.—

6 ‘‘(1) DEPENDENCY AND DISABILITY.—’’, 

7 (2) by moving the text 2 ems to the right, and 

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

9 paragraph: 

10 ‘‘(2) ASSASSINATION.—The chief judge shall 

11 determine whether the killing of a judge was an as12 sassination, subject to review only by the Tax Court. 

13 The head of any Federal agency that investigates 

14 the killing of a judge shall provide information to 

15 the chief judge that would assist the chief judge in 

16 making such a determination.’’. 

17 (d) COMPUTATION OF ANNUITIES.—Subsection (m) 

18 of section 7448 is amended—

19 (1) by striking the subsection heading and in20 serting the following: 

21 ‘‘(m) COMPUTATION OF ANNUITIES.—

22 ‘‘(1) IN GENERAL.—’’, 

23 (2) by moving the text 2 ems to the right, and 

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

25 paragraph: 
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1 ‘‘(2) ASSASSINATED JUDGES.—In the case of a 

2 judge who is assassinated and who has served less 

3 than 3 years, the annuity of the surviving spouse of 

4 such judge shall be based upon the average annual 

5 salary received by such judge for judicial service.’’. 

6 (e) OTHER BENEFITS.—Section 7448 is amended by 

7 adding at the end the following: 

8 ‘‘(u) OTHER BENEFITS.—In the case of a judge who 

9 is assassinated, an annuity shall be paid under this section 

10 notwithstanding a survivor’s eligibility for or receipt of 

11 benefits under chapter 81 of title 5, United States Code, 

12 except that the annuity for which a surviving spouse is 

13 eligible under this section shall be reduced to the extent 

14 that the total benefits paid under this section and chapter 

15 81 of that title for any year would exceed the current sal16 ary for that year of the office of the judge.’’. 

17 SEC. 202. COST-OF-LIVING ADJUSTMENTS FOR TAX COURT 

18 JUDICIAL SURVIVOR ANNUITIES. 

19 (a) IN GENERAL.—Subsection (s) of section 7448 

20 (relating to annuities to surviving spouses and dependent 

21 children of judges) is amended to read as follows: 

22 ‘‘(s) INCREASES IN SURVIVOR ANNUITIES.—Each 

23 time that an increase is made under section 8340(b) of 

24 title 5, United States Code, in annuities payable under 

25 subchapter III of chapter 83 of that title, each annuity 
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1 payable from the survivors annuity fund under this section 

2 shall be increased at the same time by the same percent3 age by which annuities are increased under such section 

4 8340(b).’’. 

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

6 this section shall apply with respect to increases made 

7 under section 8340(b) of title 5, United States Code, in 

8 annuities payable under subchapter III of chapter 83 of 

9 that title, taking effect after the date of the enactment 

10 of this Act. 

11 SEC. 203. LIFE INSURANCE COVERAGE FOR TAX COURT 

12 JUDGES. 

13 (a) IN GENERAL.—Section 7447 (relating to retire14 ment of judges) is amended by adding at the end the fol15 lowing new subsection: 

16 ‘‘(j) LIFE INSURANCE COVERAGE.—For pur17 poses of chapter 87 of title 5, United States Code 

18 (relating to life insurance), any individual who is 

19 serving as a judge of the Tax Court or who is retired 

20 under this section is deemed to be an employee who 

21 is continuing in active employment.’’. 

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

23 this section shall apply to any individual serving as a judge 

24 of the United States Tax Court or to any retired judge 
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1 of the United States Tax Court on the date of the enact2 ment of this Act. 

3 SEC. 204. COST OF LIFE INSURANCE COVERAGE FOR TAX 

4 COURT JUDGES AGE 65 OR OVER. 

5 Section 7472 (relating to expenditures) is amended 

6 by inserting after the first sentence the following new sen7 tence: ‘‘Notwithstanding any other provision of law, the 

8 Tax Court is authorized to pay on behalf of its judges, 

9 age 65 or over, any increase in the cost of Federal Em10 ployees’ Group Life Insurance imposed after April 24, 

11 1999, including any expenses generated by such payments, 

12 as authorized by the chief judge in a manner consistent 

13 with such payments authorized by the Judicial Conference 

14 of the United States pursuant to section 604(a)(5) of title 

15 28, United States Code.’’. 

16 SEC. 205. MODIFICATION OF TIMING OF LUMP-SUM PAY17 MENT OF JUDGES’ ACCRUED ANNUAL LEAVE. 

18 (a) IN GENERAL.—Section 7443 (relating to mem19 bership of the Tax Court) is amended by adding at the 

20 end the following new subsection: 

21 ‘‘(h) LUMP-SUM PAYMENT OF JUDGES’ ACCRUED

22 ANNUAL LEAVE.—Notwithstanding the provisions of sec23 tions 5551 and 6301 of title 5, United States Code, when 

24 an individual subject to the leave system provided in chap25 ter 63 of that title is appointed by the President to be 
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1 a judge of the Tax Court, the individual shall be entitled 

2 to receive, upon appointment to the Tax Court, a lump3 sum payment from the Tax Court of the accumulated and 

4 accrued current annual leave standing to the individual’s 

5 credit as certified by the agency from which the individual 

6 resigned.’’. 

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

8 this section shall apply to any judge of the United States 

9 Tax Court who has an outstanding leave balance on the 

10 date of the enactment of this Act and to any individual 

11 appointed by the President to serve as a judge of the 

12 United States Tax Court after such date. 

13 SEC. 206. PARTICIPATION OF TAX COURT JUDGES IN THE 

14 THRIFT SAVINGS PLAN. 

15 (a) IN GENERAL.—Section 7447 (relating to retire16 ment of judges), as amended by this Act, is amended by 

17 adding at the end the following new subsection: 

18 ‘‘(k) THRIFT SAVINGS PLAN.—

19 ‘‘(1) ELECTION TO CONTRIBUTE.—

20 ‘‘(A) IN GENERAL.—A judge of the Tax 

21 Court may elect to contribute to the Thrift Sav22 ings Fund established by section 8437 of title 

23 5, United States Code. 

24 ‘‘(B) PERIOD OF ELECTION.—An election 

25 may be made under this paragraph only during
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1 a period provided under section 8432(b) of title 

2 5, United States Code, for individuals subject 

3 to chapter 84 of such title. 

4 ‘‘(2) APPLICABILITY OF TITLE 5 PROVISIONS.—

5 Except as otherwise provided in this subsection, the 

6 provisions of subchapters III and VII of chapter 84 

7 of title 5, United States Code, shall apply with re8 spect to a judge who makes an election under para9 graph (1). 

10 ‘‘(3) SPECIAL RULES.—

11 ‘‘(A) AMOUNT CONTRIBUTED.—The 

12 amount contributed by a judge to the Thrift 

13 Savings Fund in any pay period shall not ex14 ceed the maximum percentage of such judge’s 

15 basic pay for such period as allowable under 

16 section 8440f of title 5, United States Code. 

17 Basic pay does not include any retired pay paid 

18 pursuant to this section. 

19 ‘‘(B) CONTRIBUTIONS FOR BENEFIT OF

20 JUDGE.—No contributions may be made for the 

21 benefit of a judge under section 8432(c) of title 

22 5, United States Code. 

23 ‘‘(C) APPLICABILITY OF SECTION 8433(b) 

24 OF TITLE 5 WHETHER OR NOT JUDGE RE25 TIRES.—Section 8433(b) of title 5, United 
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1 States Code, applies with respect to a judge 

2 who makes an election under paragraph (1) and 

3 who either—

4 ‘‘(i) retires under subsection (b), or 

5 ‘‘(ii) ceases to serve as a judge of the 

6 Tax Court but does not retire under sub7 section (b). 

8 Retirement under subsection (b) is a separation 

9 from service for purposes of subchapters III 

10 and VII of chapter 84 of that title. 

11 ‘‘(D) APPLICABILITY OF SECTION

12 8351(b)(5) OF TITLE 5.—The provisions of sec13 tion 8351(b)(5) of title 5, United States Code, 

14 shall apply with respect to a judge who makes 

15 an election under paragraph (1). 

16 ‘‘(E) EXCEPTION.—Notwithstanding sub17 paragraph (C), if any judge retires under this 

18 section, or resigns without having met the age 

19 and service requirements set forth under sub20 section (b)(2), and such judge’s nonforfeitable 

21 account balance is less than an amount that the 

22 Executive Director of the Office of Personnel 

23 Management prescribes by regulation, the Exec24 utive Director shall pay the nonforfeitable ac-
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1 count balance to the participant in a single pay2 ment.’’. 

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

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

5 of this Act, except that United States Tax Court judges 

6 may only begin to participate in the Thrift Savings Plan 

7 at the next open season beginning after such date. 

8 SEC. 207. EXEMPTION OF TEACHING COMPENSATION OF 

9 RETIRED JUDGES FROM LIMITATION ON 

10 OUTSIDE EARNED INCOME. 

11 (a) IN GENERAL.—Section 7447 (relating to retire12 ment of judges), as amended by this Act, is amended by 

13 adding at the end the following new subsection: 

14 ‘‘(l) TEACHING COMPENSATION OF RETIRED

15 JUDGES.—For purposes of the limitation under section 

16 501(a) of the Ethics in Government Act of 1978 (5 U.S.C. 

17 App.), any compensation for teaching approved under sec18 tion 502(a)(5) of such Act shall not be treated as outside 

19 earned income when received by a judge of the Tax Court 

20 who has retired under subsection (b) for teaching per21 formed during any calendar year for which such a judge 

22 has met the requirements of subsection (c), as certified 

23 by the chief judge of the Tax Court.’’. 

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

25 this section shall apply to any individual serving as a re-
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1 tired judge of the United States Tax Court on or after 

2 the date of the enactment of this Act. 

3 SEC. 208. GENERAL PROVISIONS RELATING TO MAG4 ISTRATE JUDGES OF THE TAX COURT. 

5 (a) TITLE OF SPECIAL TRIAL JUDGE CHANGED TO

6 MAGISTRATE JUDGE OF THE TAX COURT.—The heading 

7 of section 7443A is amended to read as follows: 

8 ‘‘SEC. 7443A. MAGISTRATE JUDGES OF THE TAX COURT.’’. 

9 (b) APPOINTMENT, TENURE, AND REMOVAL.—Sub10 section (a) of section 7443A is amended to read as follows: 

11 ‘‘(a) APPOINTMENT, TENURE, AND REMOVAL.—

12 ‘‘(1) APPOINTMENT.—The chief judge may, 

13 from time to time, appoint and reappoint magistrate 

14 judges of the Tax Court for a term of 8 years. The 

15 magistrate judges of the Tax Court shall proceed 

16 under such rules as may be promulgated by the Tax 

17 Court. 

18 ‘‘(2) REMOVAL.—Removal of a magistrate 

19 judge of the Tax Court during the term for which 

20 he or she is appointed shall be only for incom21 petency, misconduct, neglect of duty, or physical or 

22 mental disability, but the office of a magistrate 

23 judge of the Tax Court shall be terminated if the 

24 judges of the Tax Court determine that the services 

25 performed by the magistrate judge of the Tax Court 
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1 are no longer needed. Removal shall not occur unless 

2 a majority of all the judges of the Tax Court concur 

3 in the order of removal. Before any order of removal 

4 shall be entered, a full specification of the charges 

5 shall be furnished to the magistrate judge of the Tax 

6 Court, and he or she shall be accorded by the judges 

7 of the Tax Court an opportunity to be heard on the 

8 charges.’’. 

9 (c) SALARY.—Section 7443A(d) (relating to salary) 

10 is amended by striking ‘‘90’’ and inserting ‘‘92’’. 

11 (d) EXEMPTION FROM FEDERAL LEAVE PROVI12 SIONS.—Section 7443A is amended by adding at the end 

13 the following new subsection: 

14 ‘‘(f) EXEMPTION FROM FEDERAL LEAVE PROVI15 SIONS.—

16 ‘‘(1) IN GENERAL.—A magistrate judge of the 

17 Tax Court appointed under this section shall be ex18 empt from the provisions of subchapter I of chapter 

19 63 of title 5, United States Code. 

20 ‘‘(2) TREATMENT OF UNUSED LEAVE.—

21 ‘‘(A) AFTER SERVICE AS MAGISTRATE

22 JUDGE.—If an individual who is exempted 

23 under paragraph (1) from the subchapter re24 ferred to in such paragraph was previously sub25 ject to such subchapter and, without a break in
25

•S 661 IS 

1 service, again becomes subject to such sub2 chapter on completion of the individual’s service 

3 as a magistrate judge, the unused annual leave 

4 and sick leave standing to the individual’s cred5 it when such individual was exempted from this 

6 subchapter is deemed to have remained to the 

7 individual’s credit. 

8 ‘‘(B) COMPUTATION OF ANNUITY.—In 

9 computing an annuity under section 8339 of 

10 title 5, United States Code, the total service of 

11 an individual specified in subparagraph (A) who 

12 retires on an immediate annuity or dies leaving 

13 a survivor or survivors entitled to an annuity 

14 includes, without regard to the limitations im15 posed by subsection (f) of such section 8339, 

16 the days of unused sick leave standing to the 

17 individual’s credit when such individual was ex18 empted from subchapter I of chapter 63 of title 

19 5, United States Code, except that these days 

20 will not be counted in determining average pay 

21 or annuity eligibility. 

22 ‘‘(C) LUMP SUM PAYMENT.—Any accumu23 lated and current accrued annual leave or vaca24 tion balances credited to a magistrate judge as 

25 of the date of the enactment of this subsection 
26

•S 661 IS 

1 shall be paid in a lump sum at the time of sepa2 ration from service pursuant to the provisions 

3 and restrictions set forth in section 5551 of 

4 title 5, United States Code, and related provi5 sions referred to in such section.’’. 

6 (e) CONFORMING AMENDMENTS.—

7 (1) The heading of subsection (b) of section 

8 7443A is amended by striking ‘‘SPECIAL TRIAL

9 JUDGES’’ and inserting ‘‘MAGISTRATE JUDGES OF

10 THE TAX COURT’’. 

11 (2) Section 7443A(b) is amended by striking 

12 ‘‘special trial judges of the court’’ and inserting 

13 ‘‘magistrate judges of the Tax Court’’. 

14 (3) Subsections (c) and (d) of section 7443A 

15 are amended by striking ‘‘special trial judge’’ and 

16 inserting ‘‘magistrate judge of the Tax Court’’ each 

17 place it appears. 

18 (4) Section 7443A(e) is amended by striking 

19 ‘‘special trial judges’’ and inserting ‘‘magistrate 

20 judges of the Tax Court’’. 

21 (5) Section 7456(a) is amended by striking 

22 ‘‘special trial judge’’ each place it appears and in23 serting ‘‘magistrate judge’’. 

24 (6) Subsection (c) of section 7471 is amend25 ed—
27

•S 661 IS 

1 (A) by striking the subsection heading and 

2 inserting ‘‘MAGISTRATE JUDGES OF THE TAX

3 COURT.—’’, and 

4 (B) by striking ‘‘special trial judges’’ and 

5 inserting ‘‘magistrate judges’’. 

6 SEC. 209. ANNUITIES TO SURVIVING SPOUSES AND DE7 PENDENT CHILDREN OF MAGISTRATE 

8 JUDGES OF THE TAX COURT. 

9 (a) DEFINITIONS.—Section 7448(a) (relating to defi10 nitions), as amended by this Act, is amended by redesig11 nating paragraphs (5), (6), (7), and (8) as paragraphs (7), 

12 (8), (9), and (10), respectively, and by inserting after 

13 paragraph (4) the following new paragraphs: 

14 ‘‘(5) The term ‘magistrate judge’ means a judi15 cial officer appointed pursuant to section 7443A, in16 cluding any individual receiving an annuity under 

17 section 7443B, or chapters 83 or 84, as the case 

18 may be, of title 5, United States Code, whether or 

19 not performing judicial duties under section 7443C. 

20 ‘‘(6) The term ‘magistrate judge’s salary’ 

21 means the salary of a magistrate judge received 

22 under section 7443A(d), any amount received as an 

23 annuity under section 7443B, or chapters 83 or 84, 

24 as the case may be, of title 5, United States Code, 

25 and compensation received under section 7443C.’’. 
28

•S 661 IS 

1 (b) ELECTION.—Subsection (b) of section 7448 (re2 lating to annuities to surviving spouses and dependent 

3 children of judges) is amended— 

4 (1) by striking the subsection heading and in5 serting the following: 

6 ‘‘(b) ELECTION.—

7 ‘‘(1) JUDGES.—’’, 

8 (2) by moving the text 2 ems to the right, and 

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

10 paragraph: 

11 ‘‘(2) MAGISTRATE JUDGES.—Any magistrate 

12 judge may by written election filed with the chief 

13 judge bring himself or herself within the purview of 

14 this section. Such election shall be filed not later 

15 than the later of 6 months after—

16 ‘‘(A) 6 months after the date of the enact17 ment of this paragraph, 

18 ‘‘(B) the date the judge takes office, or 

19 ‘‘(C) the date the judge marries.’’. 

20 (c) CONFORMING AMENDMENTS.—

21 (1) The heading of section 7448 is amended by 

22 inserting ‘‘AND MAGISTRATE JUDGES’’ after 

23 ‘‘JUDGES’’. 

24 (2) The item relating to section 7448 in the 

25 table of sections for part I of subchapter C of chap-
29

•S 661 IS 

1 ter 76 is amended by inserting ‘‘and magistrate 

2 judges’’ after ‘‘judges’’. 

3 (3) Subsections (c)(1), (d), (f), (g), (h), (j), 

4 (m), (n), and (u) of section 7448, as amended by 

5 this Act, are each amended—

6 (A) by inserting ‘‘or magistrate judge’’ 

7 after ‘‘judge’’ each place it appears other than 

8 in the phrase ‘‘chief judge’’, and 

9 (B) by inserting ‘‘or magistrate judge’s’’ 

10 after ‘‘judge’s’’ each place it appears. 

11 (4) Section 7448(c) is amended—

12 (A) in paragraph (1), by striking ‘‘Tax 

13 Court judges’’ and inserting ‘‘Tax Court judi14 cial officers’’, 

15 (B) in paragraph (2)—

16 (i) in subparagraph (A), by inserting 

17 ‘‘and section 7443A(d)’’ after ‘‘(a)(4)’’, 

18 and 

19 (ii) in subparagraph (B), by striking 

20 ‘‘subsection (a)(4)’’ and inserting ‘‘sub21 sections (a)(4) and (a)(6)’’. 

22 (5) Section 7448(g) is amended by inserting 

23 ‘‘or section 7443B’’ after ‘‘section 7447’’ each place 

24 it appears, and by inserting ‘‘or an annuity’’ after 

25 ‘‘retired pay’’.
30

•S 661 IS 

1 (6) Section 7448(j)(1) is amended—

2 (A) in subparagraph (A), by striking 

3 ‘‘service or retired’’ and inserting ‘‘service, re4 tired’’, and by inserting ‘‘, or receiving any an5 nuity under section 7443B or chapters 83 or 84 

6 of title 5, United States Code,’’ after ‘‘section 

7 7447’’, and 

8 (B) in the last sentence, by striking ‘‘sub9 sections (a)(6) and (7)’’ and inserting ‘‘para10 graphs (8) and (9) of subsection (a)’’. 

11 (7) Section 7448(m)(1), as amended by this 

12 Act, is amended—

13 (A) by inserting ‘‘or any annuity under 

14 section 7443B or chapters 83 or 84 of title 5, 

15 United States Code’’ after ‘‘7447(d)’’, and 

16 (B) by inserting ‘‘or 7443B(m)(1)(B) after 

17 ‘‘7447(f)(4)’’. 

18 (8) Section 7448(n) is amended by inserting 

19 ‘‘his years of service pursuant to any appointment 

20 under section 7443A,’’ after ‘‘of the Tax Court,’’. 

21 (9) Section 3121(b)(5)(E) is amended by in22 serting ‘‘or magistrate judge’’ before ‘‘of the United 

23 States Tax Court’’. 
31

•S 661 IS 

1 (10) Section 210(a)(5)(E) of the Social Secu2 rity Act is amended by inserting ‘‘or magistrate 

3 judge’’ before ‘‘of the United States Tax Court’’. 

4 SEC. 210. RETIREMENT AND ANNUITY PROGRAM. 

5 (a) RETIREMENT AND ANNUITY PROGRAM.—Part I 

6 of subchapter C of chapter 76 is amended by inserting 

7 after section 7443A the following new section: 

8 ‘‘SEC. 7443B. RETIREMENT FOR MAGISTRATE JUDGES OF 

9 THE TAX COURT. 

10 ‘‘(a) RETIREMENT BASED ON YEARS OF SERVICE.—

11 A magistrate judge of the Tax Court to whom this section 

12 applies and who retires from office after attaining the age 

13 of 65 years and serving at least 14 years, whether continu14 ously or otherwise, as such magistrate judge shall, subject 

15 to subsection (f), be entitled to receive, during the remain16 der of the magistrate judge’s lifetime, an annuity equal 

17 to the salary being received at the time the magistrate 

18 judge leaves office. 

19 ‘‘(b) RETIREMENT UPON FAILURE OF REAPPOINT20 MENT.—A magistrate judge of the Tax Court to whom 

21 this section applies who is not reappointed following the 

22 expiration of the term of office of such magistrate judge, 

23 and who retires upon the completion of the term shall, 

24 subject to subsection (f), be entitled to receive, upon at25 taining the age of 65 years and during the remainder of 
32

•S 661 IS 

1 such magistrate judge’s lifetime, an annuity equal to that 

2 portion of the salary being received at the time the mag3 istrate judge leaves office which the aggregate number of 

4 years of service, not to exceed 14, bears to 14, if—

5 ‘‘(1) such magistrate judge has served at least 

6 1 full term as a magistrate judge, and 

7 ‘‘(2) not earlier than 9 months before the date 

8 on which the term of office of such magistrate judge 

9 expires, and not later than 6 months before such 

10 date, such magistrate judge notified the chief judge 

11 of the Tax Court in writing that such magistrate 

12 judge was willing to accept reappointment to the po13 sition in which such magistrate judge was serving. 

14 ‘‘(c) SERVICE OF AT LEAST 8 YEARS.—A magistrate 

15 judge of the Tax Court to whom this section applies and 

16 who retires after serving at least 8 years, whether continu17 ously or otherwise, as such a magistrate judge shall, sub18 ject to subsection (f), be entitled to receive, upon attaining 

19 the age of 65 years and during the remainder of the mag20 istrate judge’s lifetime, an annuity equal to that portion 

21 of the salary being received at the time the magistrate 

22 judge leaves office which the aggregate number of years 

23 of service, not to exceed 14, bears to 14. Such annuity 

shall be reduced by 1 24 ⁄6 of 1 percent for each full month 

25 such magistrate judge was under the age of 65 at the time 
33

•S 661 IS 

1 the magistrate judge left office, except that such reduction 

2 shall not exceed 20 percent. 

3 ‘‘(d) RETIREMENT FOR DISABILITY.—A magistrate 

4 judge of the Tax Court to whom this section applies, who 

5 has served at least 5 years, whether continuously or other6 wise, as such a magistrate judge, and who retires or is 

7 removed from office upon the sole ground of mental or 

8 physical disability shall, subject to subsection (f), be enti9 tled to receive, during the remainder of the magistrate 

10 judge’s lifetime, an annuity equal to 40 percent of the sal11 ary being received at the time of retirement or removal 

12 or, in the case of a magistrate judge who has served for 

13 at least 10 years, an amount equal to that proportion of 

14 the salary being received at the time of retirement or re15 moval which the aggregate number of years of service, not 

16 to exceed 14, bears to 14. 

17 ‘‘(e) COST-OF-LIVING ADJUSTMENTS.—A magistrate 

18 judge of the Tax Court who is entitled to an annuity under 

19 this section is also entitled to a cost-of-living adjustment 

20 in such annuity, calculated and payable in the same man21 ner as adjustments under section 8340(b) of title 5, 

22 United States Code, except that any such annuity, as in23 creased under this subsection, may not exceed the salary 

24 then payable for the position from which the magistrate 

25 judge retired or was removed. 
34

•S 661 IS 

1 ‘‘(f) ELECTION; ANNUITY IN LIEU OF OTHER ANNU2 ITIES.—

3 ‘‘(1) IN GENERAL.—A magistrate judge of the 

4 Tax Court shall be entitled to an annuity under this 

5 section if the magistrate judge elects an annuity 

6 under this section by notifying the chief judge of the 

7 Tax Court not later than the later of—

8 ‘‘(A) 5 years after the magistrate judge of 

9 the Tax Court begins judicial service, or 

10 ‘‘(B) 5 years after the date of the enact11 ment of this subsection. 

12 Such notice shall be given in accordance with proce13 dures prescribed by the Tax Court. 

14 ‘‘(2) ANNUITY IN LIEU OF OTHER ANNUITY.—

15 A magistrate judge who elects to receive an annuity 

16 under this section shall not be entitled to receive—

17 ‘‘(A) any annuity to which such magistrate 

18 judge would otherwise have been entitled under 

19 subchapter III of chapter 83, or under chapter 

20 84 (except for subchapters III and VII), of title 

21 5, United States Code, for service performed as 

22 a magistrate or otherwise, 

23 ‘‘(B) an annuity or salary in senior status 

24 or retirement under section 371 or 372 of title 

25 28, United States Code,
35

•S 661 IS 

1 ‘‘(C) retired pay under section 7447, or 

2 ‘‘(D) retired pay under section 7296 of 

3 title 38, United States Code. 

4 ‘‘(3) COORDINATION WITH TITLE 5.—A mag5 istrate judge of the Tax Court who elects to receive 

6 an annuity under this section—

7 ‘‘(A) shall not be subject to deductions and 

8 contributions otherwise required by section 

9 8334(a) of title 5, United States Code, 

10 ‘‘(B) shall be excluded from the operation 

11 of chapter 84 (other than subchapters III and 

12 VII) of such title 5, and 

13 ‘‘(C) is entitled to a lump-sum credit under 

14 section 8342(a) or 8424 of such title 5, as the 

15 case may be. 

16 ‘‘(g) CALCULATION OF SERVICE.—For purposes of 

17 calculating an annuity under this section—

18 ‘‘(1) service as a magistrate judge of the Tax 

19 Court to whom this section applies may be credited, 

20 and 

21 ‘‘(2) each month of service shall be credited as 

1 22 ⁄12 of a year, and the fractional part of any month 

23 shall not be credited. 

24 ‘‘(h) COVERED POSITIONS AND SERVICE.—This sec25 tion applies to any magistrate judge of the Tax Court or 
36

•S 661 IS 

1 special trial judge of the Tax Court appointed under this 

2 subchapter, but only with respect to service as such a mag3 istrate judge or special trial judge after a date not earlier 

than 91 4 ⁄2 years before the date of the enactment of this 

5 subsection. 

6 ‘‘(i) PAYMENTS PURSUANT TO COURT ORDER.—

7 ‘‘(1) IN GENERAL.—Payments under this sec8 tion which would otherwise be made to a magistrate 

9 judge of the Tax Court based upon his or her service 

10 shall be paid (in whole or in part) by the chief judge 

11 of the Tax Court to another person if and to the ex12 tent expressly provided for in the terms of any court 

13 decree of divorce, annulment, or legal separation, or 

14 the terms of any court order or court-approved prop15 erty settlement agreement incident to any court de16 cree of divorce, annulment, or legal separation. Any 

17 payment under this paragraph to a person bars re18 covery by any other person. 

19 ‘‘(2) REQUIREMENTS FOR PAYMENT.—Para20 graph (1) shall apply only to payments made by the 

21 chief judge of the Tax Court after the date of re22 ceipt by the chief judge of written notice of such de23 cree, order, or agreement, and such additional infor24 mation as the chief judge may prescribe. 
37

•S 661 IS 

1 ‘‘(3) COURT DEFINED.—For purposes of this 

2 subsection, the term ‘court’ means any court of any 

3 State, the District of Columbia, the Commonwealth 

4 of Puerto Rico, Guam, the Northern Mariana Is5 lands, or the Virgin Islands, and any Indian tribal 

6 court or courts of Indian offense. 

7 ‘‘(j) DEDUCTIONS, CONTRIBUTIONS, AND DEPOS8 ITS.—

9 ‘‘(1) DEDUCTIONS.—Beginning with the next 

10 pay period after the chief judge of the Tax Court re11 ceives a notice under subsection (f) that a mag12 istrate judge of the Tax Court has elected an annu13 ity under this section, the chief judge shall deduct 

14 and withhold 1 percent of the salary of such mag15 istrate judge. Amounts shall be so deducted and 

16 withheld in a manner determined by the chief judge. 

17 Amounts deducted and withheld under this sub18 section shall be deposited in the Treasury of the 

19 United States to the credit of the Tax Court Judi20 cial Officers’ Retirement Fund. Deductions under 

21 this subsection from the salary of a magistrate judge 

22 shall terminate upon the retirement of the mag23 istrate judge or upon completion of 14 years of serv24 ice for which contributions under this section have 

25 been made, whether continuously or otherwise, as 
38

•S 661 IS 

1 calculated under subsection (g), whichever occurs 

2 first. 

3 ‘‘(2) CONSENT TO DEDUCTIONS; DISCHARGE OF

4 CLAIMS.—Each magistrate judge of the Tax Court 

5 who makes an election under subsection (f) shall be 

6 deemed to consent and agree to the deductions from 

7 salary which are made under paragraph (1). Pay8 ment of such salary less such deductions (and any 

9 deductions made under section 7448) is a full and 

10 complete discharge and acquittance of all claims and 

11 demands for all services rendered by such magistrate 

12 judge during the period covered by such payment, 

13 except the right to those benefits to which the mag14 istrate judge is entitled under this section (and sec15 tion 7448). 

16 ‘‘(k) DEPOSITS FOR PRIOR SERVICE.—Each mag17 istrate judge of the Tax Court who makes an election 

18 under subsection (f) may deposit, for service performed 

19 before such election for which contributions may be made 

20 under this section, an amount equal to 1 percent of the 

21 salary received for that service. Credit for any period cov22 ered by that service may not be allowed for purposes of 

23 an annuity under this section until a deposit under this 

24 subsection has been made for that period. 
39

•S 661 IS 

1 ‘‘(l) INDIVIDUAL RETIREMENT RECORDS.—The 

2 amounts deducted and withheld under subsection (j), and 

3 the amounts deposited under subsection (k), shall be cred4 ited to individual accounts in the name of each magistrate 

5 judge of the Tax Court from whom such amounts are re6 ceived, for credit to the Tax Court Judicial Officers’ Re7 tirement Fund. 

8 ‘‘(m) ANNUITIES AFFECTED IN CERTAIN CASES.—

9 ‘‘(1) 1-YEAR FORFEITURE FOR FAILURE TO

10 PERFORM JUDICIAL DUTIES.—Subject to paragraph 

11 (3), any magistrate judge of the Tax Court who re12 tires under this section and who fails to perform ju13 dicial duties required of such individual by section 

14 7443C shall forfeit all rights to an annuity under 

15 this section for a 1-year period which begins on the 

16 1st day on which such individual fails to perform 

17 such duties. 

18 ‘‘(2) PERMANENT FORFEITURE OF RETIRED

19 PAY WHERE CERTAIN NON-GOVERNMENT SERVICES

20 PERFORMED.—Subject to paragraph (3), any mag21 istrate judge of the Tax Court who retires under this 

22 section and who thereafter performs (or supervises 

23 or directs the performance of) legal or accounting 

24 services in the field of Federal taxation for the indi25 vidual’s client, the individual’s employer, or any of
40

•S 661 IS 

1 such employer’s clients, shall forfeit all rights to an 

2 annuity under this section for all periods beginning 

3 on or after the first day on which the individual per4 forms (or supervises or directs the performance of) 

5 such services. The preceding sentence shall not apply 

6 to any civil office or employment under the Govern7 ment of the United States. 

8 ‘‘(3) FORFEITURES NOT TO APPLY WHERE IN9 DIVIDUAL ELECTS TO FREEZE AMOUNT OF ANNU10 ITY.—

11 ‘‘(A) IN GENERAL.—If a magistrate judge 

12 of the Tax Court makes an election under this 

13 paragraph—

14 ‘‘(i) paragraphs (1) and (2) (and sec15 tion 7443C) shall not apply to such mag16 istrate judge beginning on the date such 

17 election takes effect, and 

18 ‘‘(ii) the annuity payable under this 

19 section to such magistrate judge, for peri20 ods beginning on or after the date such 

21 election takes effect, shall be equal to the 

22 annuity to which such magistrate judge is 

23 entitled on the day before such effective 

24 date. 
41

•S 661 IS 

1 ‘‘(B) ELECTION REQUIREMENTS.—An elec2 tion under subparagraph (A)—

3 ‘‘(i) may be made by a magistrate 

4 judge of the Tax Court eligible for retire5 ment under this section, and 

6 ‘‘(ii) shall be filed with the chief judge 

7 of the Tax Court. 

8 Such an election, once it takes effect, shall be 

9 irrevocable. 

10 ‘‘(C) EFFECTIVE DATE OF ELECTION.—

11 Any election under subparagraph (A) shall take 

12 effect on the first day of the first month fol13 lowing the month in which the election is made. 

14 ‘‘(4) ACCEPTING OTHER EMPLOYMENT.—Any 

15 magistrate judge of the Tax Court who retires under 

16 this section and thereafter accepts compensation for 

17 civil office or employment under the United States 

18 Government (other than for the performance of 

19 functions as a magistrate judge of the Tax Court 

20 under section 7443C) shall forfeit all rights to an 

21 annuity under this section for the period for which 

22 such compensation is received. For purposes of this 

23 paragraph, the term ‘compensation’ includes retired 

24 pay or salary received in retired status. 

25 ‘‘(n) LUMP-SUM PAYMENTS.—
42

•S 661 IS 

1 ‘‘(1) ELIGIBILITY.—

2 ‘‘(A) IN GENERAL.—Subject to paragraph 

3 (2), an individual who serves as a magistrate 

4 judge of the Tax Court and—

5 ‘‘(i) who leaves office and is not re6 appointed as a magistrate judge of the Tax 

7 Court for at least 31 consecutive days, 

8 ‘‘(ii) who files an application with the 

9 chief judge of the Tax Court for payment 

10 of a lump-sum credit, 

11 ‘‘(iii) is not serving as a magistrate 

12 judge of the Tax Court at the time of fil13 ing of the application, and 

14 ‘‘(iv) will not become eligible to re15 ceive an annuity under this section within 

16 31 days after filing the application, 

17 is entitled to be paid the lump-sum credit. Pay18 ment of the lump-sum credit voids all rights to 

19 an annuity under this section based on the serv20 ice on which the lump-sum credit is based, until 

21 that individual resumes office as a magistrate 

22 judge of the Tax Court. 

23 ‘‘(B) PAYMENT TO SURVIVORS.—Lump24 sum benefits authorized by subparagraphs (C), 

25 (D), and (E) of this paragraph shall be paid to 
43

•S 661 IS 

1 the person or persons surviving the magistrate 

2 judge of the Tax Court and alive on the date 

3 title to the payment arises, in the order of prec4 edence set forth in subsection (o) of section 376 

5 of title 28, United States Code, and in accord6 ance with the last 2 sentences of paragraph (1) 

7 of that subsection. For purposes of the pre8 ceding sentence, the term ‘judicial official’ as 

9 used in subsection (o) of such section 376 shall 

10 be deemed to mean ‘magistrate judge of the 

11 Tax Court’ and the terms ‘Administrative Of12 fice of the United States Courts’ and ‘Director 

13 of the Administrative Office of the United 

14 States Courts’ shall be deemed to mean ‘chief 

15 judge of the Tax Court’. 

16 ‘‘(C) PAYMENT UPON DEATH OF JUDGE

17 BEFORE RECEIPT OF ANNUITY.—If a mag18 istrate judge of the Tax Court dies before re19 ceiving an annuity under this section, the lump20 sum credit shall be paid. 

21 ‘‘(D) PAYMENT OF ANNUITY REMAIN22 DER.—If all annuity rights under this section 

23 based on the service of a deceased magistrate 

24 judge of the Tax Court terminate before the 
44

•S 661 IS 

1 total annuity paid equals the lump-sum credit, 

2 the difference shall be paid. 

3 ‘‘(E) PAYMENT UPON DEATH OF JUDGE

4 DURING RECEIPT OF ANNUITY.—If a magistrate 

5 judge of the Tax Court who is receiving an an6 nuity under this section dies, any accrued annu7 ity benefits remaining unpaid shall be paid. 

8 ‘‘(F) PAYMENT UPON TERMINATION.—Any 

9 accrued annuity benefits remaining unpaid on 

10 the termination, except by death, of the annuity 

11 of a magistrate judge of the Tax Court shall be 

12 paid to that individual. 

13 ‘‘(G) PAYMENT UPON ACCEPTING OTHER

14 EMPLOYMENT.—Subject to paragraph (2), a 

15 magistrate judge of the Tax Court who forfeits 

16 rights to an annuity under subsection (m)(4) 

17 before the total annuity paid equals the lump18 sum credit shall be entitled to be paid the dif19 ference if the magistrate judge of the Tax 

20 Court files an application with the chief judge 

21 of the Tax Court for payment of that dif22 ference. A payment under this subparagraph 

23 voids all rights to an annuity on which the pay24 ment is based. 

25 ‘‘(2) SPOUSES AND FORMER SPOUSES.—
45

•S 661 IS 

1 ‘‘(A) IN GENERAL.—Payment of the lump2 sum credit under paragraph (1)(A) or a pay3 ment under paragraph (1)(G)—

4 ‘‘(i) may be made only if any current 

5 spouse and any former spouse of the mag6 istrate judge of the Tax Court are notified 

7 of the magistrate judge’s application, and 

8 ‘‘(ii) shall be subject to the terms of 

9 a court decree of divorce, annulment, or 

10 legal separation, or any court or court ap11 proved property settlement agreement inci12 dent to such decree, if—

13 ‘‘(I) the decree, order, or agree14 ment expressly relates to any portion 

15 of the lump-sum credit or other pay16 ment involved, and 

17 ‘‘(II) payment of the lump-sum 

18 credit or other payment would extin19 guish entitlement of the magistrate 

20 judge’s spouse or former spouse to 

21 any portion of an annuity under sub22 section (i). 

23 ‘‘(B) NOTIFICATION.—Notification of a 

24 spouse or former spouse under this paragraph 

25 shall be made in accordance with such proce-
46

•S 661 IS 

1 dures as the chief judge of the Tax Court shall 

2 prescribe. The chief judge may provide under 

3 such procedures that subparagraph (A)(i) may 

4 be waived with respect to a spouse or former 

5 spouse if the magistrate judge establishes to the 

6 satisfaction of the chief judge that the where7 abouts of such spouse or former spouse cannot 

8 be determined. 

9 ‘‘(C) RESOLUTION OF 2 OR MORE OR10 DERS.—The chief judge shall prescribe proce11 dures under which this paragraph shall be ap12 plied in any case in which the chief judge re13 ceives 2 or more orders or decrees described in 

14 subparagraph (A). 

15 ‘‘(3) DEFINITION.—For purposes of this sub16 section, the term ‘lump-sum credit’ means the 

17 unrefunded amount consisting of—

18 ‘‘(A) retirement deductions made under 

19 this section from the salary of a magistrate 

20 judge of the Tax Court, 

21 ‘‘(B) amounts deposited under subsection 

22 (k) by a magistrate judge of the Tax Court cov23 ering earlier service, and 

24 ‘‘(C) interest on the deductions and depos25 its which, for any calendar year, shall be equal 
47

•S 661 IS 

1 to the overall average yield to the Tax Court 

2 Judicial Officers’ Retirement Fund during the 

3 preceding fiscal year from all obligations pur4 chased by the Secretary during such fiscal year 

5 under subsection (o); but does not include inter6 est—

7 ‘‘(i) if the service covered thereby ag8 gregates 1 year or less, or 

9 ‘‘(ii) for the fractional part of a 

10 month in the total service. 

11 ‘‘(o) TAX COURT JUDICIAL OFFICERS’ RETIREMENT

12 FUND.—

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

14 the Treasury a fund which shall be known as the 

15 ‘Tax Court Judicial Officers’ Retirement Fund’. 

16 Amounts in the Fund are authorized to be appro17 priated for the payment of annuities, refunds, and 

18 other payments under this section. 

19 ‘‘(2) INVESTMENT OF FUND.—The Secretary 

20 shall invest, in interest bearing securities of the 

21 United States, such currently available portions of 

22 the Tax Court Judicial Officers’ Retirement Fund as 

23 are not immediately required for payments from the 

24 Fund. The income derived from these investments 

25 constitutes a part of the Fund. 
48

•S 661 IS 

1 ‘‘(3) UNFUNDED LIABILITY.—

2 ‘‘(A) IN GENERAL.—There are authorized 

3 to be appropriated to the Tax Court Judicial 

4 Officers’ Retirement Fund amounts required to 

5 reduce to zero the unfunded liability of the 

6 Fund. 

7 ‘‘(B) UNFUNDED LIABILITY.—For pur8 poses of subparagraph (A), the term ‘unfunded 

9 liability’ means the estimated excess, deter10 mined on an annual basis in accordance with 

11 the provisions of section 9503 of title 31, 

12 United States Code, of the present value of all 

13 benefits payable from the Tax Court Judicial 

14 Officers’ Retirement Fund over the sum of—

15 ‘‘(i) the present value of deductions to 

16 be withheld under this section from the fu17 ture basic pay of magistrate judges of the 

18 Tax Court, plus 

19 ‘‘(ii) the balance in the Fund as of the 

20 date the unfunded liability is determined. 

21 ‘‘(p) PARTICIPATION IN THRIFT SAVINGS PLAN.—

22 ‘‘(1) ELECTION TO CONTRIBUTE.—

23 ‘‘(A) IN GENERAL.—A magistrate judge of 

24 the Tax Court who elects to receive an annuity 

25 under this section or under section 211 of the 
49

•S 661 IS 

1 United States Tax Court Modernization Act 

2 may elect to contribute an amount of such indi3 vidual’s basic pay to the Thrift Savings Fund 

4 established by section 8437 of title 5, United 

5 States Code. 

6 ‘‘(B) PERIOD OF ELECTION.—An election 

7 may be made under this paragraph only during 

8 a period provided under section 8432(b) of title 

9 5, United States Code, for individuals subject to 

10 chapter 84 of such title. 

11 ‘‘(2) APPLICABILITY OF TITLE 5 PROVISIONS.—

12 Except as otherwise provided in this subsection, the 

13 provisions of subchapters III and VII of chapter 84 

14 of title 5, United States Code, shall apply with re15 spect to a magistrate judge who makes an election 

16 under paragraph (1). 

17 ‘‘(3) SPECIAL RULES.—

18 ‘‘(A) AMOUNT CONTRIBUTED.—The 

19 amount contributed by a magistrate judge to 

20 the Thrift Savings Fund in any pay period shall 

21 not exceed the maximum percentage of such 

22 judge’s basic pay for such pay period as allow23 able under section 8440f of title 5, United 

24 States Code.
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1 ‘‘(B) CONTRIBUTIONS FOR BENEFIT OF

2 JUDGE.—No contributions may be made for the 

3 benefit of a magistrate judge under section 

4 8432(c) of title 5, United States Code. 

5 ‘‘(C) APPLICABILITY OF SECTION 8433(b) 

6 OF TITLE 5.—Section 8433(b) of title 5, United 

7 States Code, applies with respect to a mag8 istrate judge who makes an election under para9 graph (1) and—

10 ‘‘(i) who retires entitled to an imme11 diate annuity under this section (including 

12 a disability annuity under subsection (d) of 

13 this section) or section 211 of the United 

14 States Tax Court Modernization Act, 

15 ‘‘(ii) who retires before attaining age 

16 65 but is entitled, upon attaining age 65, 

17 to an annuity under this section or section 

18 211 of the United States Tax Court Mod19 ernization Act, or 

20 ‘‘(iii) who retires before becoming en21 titled to an immediate annuity, or an an22 nuity upon attaining age 65, under this 

23 section or section 211 of the United States 

24 Tax Court Modernization Act. 
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1 ‘‘(D) SEPARATION FROM SERVICE.—With 

2 respect to a magistrate judge to whom this sub3 section applies, retirement under this section or 

4 section 211 of the United States Tax Court 

5 Modernization Act is a separation from service 

6 for purposes of subchapters III and VII of 

7 chapter 84 of title 5, United States Code. 

8 ‘‘(4) DEFINITIONS.—For purposes of this sub9 section, the terms ‘retirement’ and ‘retire’ include 

10 removal from office under section 7443A(a)(2) on 

11 the sole ground of mental or physical disability. 

12 ‘‘(5) OFFSET.—In the case of a magistrate 

13 judge who receives a distribution from the Thrift 

14 Savings Fund and who later receives an annuity 

15 under this section, that annuity shall be offset by an 

16 amount equal to the amount which represents the 

17 Government’s contribution to that person’s Thrift 

18 Savings Account, without regard to earnings attrib19 utable to that amount. Where such an offset would 

20 exceed 50 percent of the annuity to be received in 

21 the first year, the offset may be divided equally over 

22 the first 2 years in which that person receives the 

23 annuity. 

24 ‘‘(6) EXCEPTION.—Notwithstanding clauses (i) 

25 and (ii) of paragraph (3)(C), if any magistrate judge 
52

•S 661 IS 

1 retires under circumstances making such magistrate 

2 judge eligible to make an election under subsection 

3 (b) of section 8433 of title 5, United States Code, 

4 and such magistrate judge’s nonforfeitable account 

5 balance is less than an amount that the Executive 

6 Director of the Office of Personnel Management pre7 scribes by regulation, the Executive Director shall 

8 pay the nonforfeitable account balance to the partici9 pant in a single payment.’’. 

10 (b) CONFORMING AMENDMENT.—The table of sec11 tions for part I of subchapter C of chapter 76 is amended 

12 by inserting after the item relating to section 7443A the 

13 following new item:

‘‘Sec. 7443B. Retirement for magistrate judges of the Tax 

Court.’’.

14 SEC. 211. INCUMBENT MAGISTRATE JUDGES OF THE TAX 

15 COURT. 

16 (a) RETIREMENT ANNUITY UNDER TITLE 5 AND

17 SECTION 7443B OF THE INTERNAL REVENUE CODE OF

18 1986.—A magistrate judge of the United States Tax 

19 Court in active service on the date of the enactment of 

20 this Act shall, subject to subsection (b), be entitled, in lieu 

21 of the annuity otherwise provided under the amendments 

22 made by this title, to—

23 (1) an annuity under subchapter III of chapter 

24 83, or under chapter 84 (except for subchapters III 
53

•S 661 IS 

1 and VII), of title 5, United States Code, as the case 

2 may be, for creditable service before the date on 

3 which service would begin to be credited for pur4 poses of paragraph (2), and 

5 (2) an annuity calculated under subsection (b) 

6 or (c) and subsection (g) of section 7443B of the In7 ternal Revenue Code of 1986, as added by this Act, 

8 for any service as a magistrate judge of the United 

9 States Tax Court or special trial judge of the United 

10 States Tax Court but only with respect to service as 

11 such a magistrate judge or special trial judge after 

a date not earlier than 91 12 ⁄2 years prior to the date 

13 of the enactment of this Act (as specified in the elec14 tion pursuant to subsection (b)) for which deduc15 tions and deposits are made under subsections (j) 

16 and (k) of such section 7443B, as applicable, with17 out regard to the minimum number of years of serv18 ice as such a magistrate judge of the United States 

19 Tax Court, except that—

20 (A) in the case of a magistrate judge who 

21 retired with less than 8 years of service, the an22 nuity under subsection (c) of such section 

23 7443B shall be equal to that proportion of the 

24 salary being received at the time the magistrate 

25 judge leaves office which the years of service
54

•S 661 IS 

1 bears to 14, subject to a reduction in accord2 ance with subsection (c) of such section 7443B 

3 if the magistrate judge is under age 65 at the 

4 time he or she leaves office, and 

5 (B) the aggregate amount of the annuity 

6 initially payable on retirement under this sub7 section may not exceed the rate of pay for the 

8 magistrate judge which is in effect on the day 

9 before the retirement becomes effective. 

10 (b) FILING OF NOTICE OF ELECTION.—A magistrate 

11 judge of the United States Tax Court shall be entitled to 

12 an annuity under this section only if the magistrate judge 

13 files a notice of that election with the chief judge of the 

14 United States Tax Court specifying the date on which 

15 service would begin to be credited under section 7443B 

16 of the Internal Revenue Code of 1986, as added by this 

17 Act, in lieu of chapter 83 or chapter 84 of title 5, United 

18 States Code. Such notice shall be filed in accordance with 

19 such procedures as the chief judge of the United States 

20 Tax Court shall prescribe. 

21 (c) LUMP-SUM CREDIT UNDER TITLE 5.—A mag22 istrate judge of the United States Tax Court who makes 

23 an election under subsection (b) shall be entitled to a 

24 lump-sum credit under section 8342 or 8424 of title 5, 

25 United States Code, as the case may be, for any service 
55

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1 which is covered under section 7443B of the Internal Rev2 enue Code of 1986, as added by this Act, pursuant to that 

3 election, and with respect to which any contributions were 

4 made by the magistrate judge under the applicable provi5 sions of title 5, United States Code. 

6 (d) RECALL.—With respect to any magistrate judge 

7 of the United States Tax Court receiving an annuity under 

8 this section who is recalled to serve under section 7443C 

9 of the Internal Revenue Code of 1986, as added by this 

10 Act—

11 (1) the amount of compensation which such re12 called magistrate judge receives under such section 

13 7443C shall be calculated on the basis of the annu14 ity received under this section, and 

15 (2) such recalled magistrate judge of the United 

16 States Tax Court may serve as a reemployed annu17 itant to the extent otherwise permitted under title 5, 

18 United States Code. 

19 Section 7443B(m)(4) of the Internal Revenue Code of 

20 1986, as added by this Act, shall not apply with respect 

21 to service as a reemployed annuitant described in para22 graph (2). 
56

•S 661 IS 

1 SEC. 212. PROVISIONS FOR RECALL. 

2 (a) IN GENERAL.—Part I of subchapter C of chapter 

3 76, as amended by this Act, is amended by inserting after 

4 section 7443B the following new section: 

5 ‘‘SEC. 7443C. RECALL OF MAGISTRATE JUDGES OF THE TAX 

6 COURT. 

7 ‘‘(a) RECALLING OF RETIRED MAGISTRATE

8 JUDGES.—Any individual who has retired pursuant to sec9 tion 7443B or the applicable provisions of title 5, United 

10 States Code, upon reaching the age and service require11 ments established therein, may at or after retirement be 

12 called upon by the chief judge of the Tax Court to perform 

13 such judicial duties with the Tax Court as may be re14 quested of such individual for any period or periods speci15 fied by the chief judge; except that in the case of any such 

16 individual—

17 ‘‘(1) the aggregate of such periods in any 1 cal18 endar year shall not (without such individual’s con19 sent) exceed 90 calendar days, and 

20 ‘‘(2) such individual shall be relieved of per21 forming such duties during any period in which ill22 ness or disability precludes the performance of such 

23 duties. 

24 Any act, or failure to act, by an individual performing ju25 dicial duties pursuant to this subsection shall have the 
57

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1 same force and effect as if it were the act (or failure to 

2 act) of a magistrate judge of the Tax Court. 

3 ‘‘(b) COMPENSATION.—For the year in which a pe4 riod of recall occurs, the magistrate judge shall receive, 

5 in addition to the annuity provided under the provisions 

6 of section 7443B or under the applicable provisions of title 

7 5, United States Code, an amount equal to the difference 

8 between that annuity and the current salary of the office 

9 to which the magistrate judge is recalled. The annuity of 

10 the magistrate judge who completes that period of service, 

11 who is not recalled in a subsequent year, and who retired 

12 under section 7443B, shall be equal to the salary in effect 

13 at the end of the year in which the period of recall oc14 curred for the office from which such individual retired. 

15 ‘‘(c) RULEMAKING AUTHORITY.—The provisions of 

16 this section may be implemented under such rules as may 

17 be promulgated by the Tax Court.’’. 

18 (b) CONFORMING AMENDMENT.—The table of sec19 tions for part I of subchapter C of chapter 76, as amended 

20 by this Act, is amended by inserting after the item relating 

21 to section 7443B the following new item:

‘‘Sec. 7443C. Recall of magistrate judges of the Tax Court.’’.
58

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1 SEC. 213. EFFECTIVE DATE. 

2 Except as otherwise provided, the amendments made 

3 by this title shall take effect on the date of the enactment 

4 of this Act.

Æ