II 

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. 

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’’. 
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1 (b) AMENDMENT OF 1986 CODE.—Except as other2 wise expressly provided, whenever in this Act an amend3 ment or repeal is expressed in terms of an amendment 

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

5 shall be considered to be made to a section or other provi6 sion of the Internal Revenue Code of 1986. 

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

8 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. 
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1 TITLE I—TAX COURT 

2 PROCEDURE 

3 SEC. 101. JURISDICTION OF TAX COURT OVER COLLECTION 

4 DUE PROCESS CASES. 

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

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

7 as follows: 

8 ‘‘(1) JUDICIAL REVIEW OF DETERMINATION.— 

9 The person may, within 30 days of a determination 

10 under this section, appeal such determination to the 

11 Tax Court (and the Tax Court shall have jurisdic12 tion with respect to such matter).’’. 

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

14 this section shall apply to determinations made after the 

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

16 this Act. 

17 SEC. 102. AUTHORITY FOR SPECIAL TRIAL JUDGES TO 

18 HEAR AND DECIDE CERTAIN EMPLOYMENT 

19 STATUS CASES. 

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

21 proceedings which may be assigned to special trial judges) 

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

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

24 inserting after paragraph (4) the following new paragraph: 
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1 ‘‘(5) any proceeding under section 7436(c), 

2 and’’. 

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

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

5 (5)’’. 

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

7 this section shall apply to any proceeding under section 

8 7436(c) of the Internal Revenue Code of 1986 with re9 spect to which a decision has not become final (as deter10 mined under section 7481 of such Code) before the date 

11 of the enactment of this Act. 

12 SEC. 103. CONFIRMATION OF AUTHORITY OF TAX COURT 

13 TO APPLY DOCTRINE OF EQUITABLE 

14 RECOUPMENT. 

15 (a) CONFIRMATION OF AUTHORITY OF TAX COURT

16 TO APPLY DOCTRINE OF EQUITABLE RECOUPMENT.— 

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

18 and quarters) is amended by adding at the end the fol19 lowing new sentence: ‘‘Notwithstanding the preceding sen20 tence, the Tax Court may apply the doctrine of equitable 

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

22 tax cases before the district courts of the United States 

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

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

25 this section shall apply to any action or proceeding in the 
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1 United States Tax Court with respect to which a decision 

2 has not become final (as determined under section 7481 

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

4 the enactment of this Act. 

5 SEC. 104. TAX COURT FILING FEE IN ALL CASES COM6 MENCED BY FILING PETITION. 

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

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

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

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

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

12 of this Act. 

13 SEC. 105. AMENDMENTS TO APPOINT EMPLOYEES. 

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

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

16 follows: 

17 ‘‘(a) APPOINTMENT AND COMPENSATION.— 

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

19 clerk without regard to the provisions of title 5, 

20 United States Code, governing appointments in the 

21 competitive service. The clerk shall serve at the 

22 pleasure of the Tax Court. 

23 ‘‘(2) LAW CLERKS AND SECRETARIES.— 

24 ‘‘(A) IN GENERAL.—The judges and spe25 cial trial judges of the Tax Court may appoint 
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1 law clerks and secretaries, in such numbers as 

2 the Tax Court may approve, without regard to 

3 the provisions of title 5, United States Code, 

4 governing appointments in the competitive serv5 ice. Any such law clerk or secretary shall serve 

6 at the pleasure of the appointing judge. 

7 ‘‘(B) EXEMPTION FROM FEDERAL LEAVE

8 PROVISIONS.—A law clerk appointed under this 

9 subsection shall be exempt from the provisions 

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

11 States Code. Any unused sick leave or annual 

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

13 effective date of this subsection shall remain 

14 credited to the employee and shall be available 

15 to the employee upon separation from the Fed16 eral Government. 

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

18 appoint necessary employees without regard to the 

19 provisions of title 5, United States Code, governing 

20 appointments in the competitive service. Such em21 ployees shall be subject to removal by the Tax 

22 Court. 

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

24 the compensation for the clerk and other employees 

25 of the Tax Court without regard to the provisions of 
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1 chapter 51, subchapter III of chapter 53, or section 

2 5373 of title 5, United States Code. To the max3 imum extent feasible, the Tax Court shall com4 pensate employees at rates consistent with those for 

5 employees holding comparable positions in the judi6 cial branch. 

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

8 programs for employee evaluations, incentive awards, 

9 flexible work schedules, premium pay, and resolution 

10 of employee grievances. 

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

12 Court shall— 

13 ‘‘(A) prohibit discrimination on the basis 

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

15 political affiliation, marital status, or handi16 capping condition; and 

17 ‘‘(B) promulgate procedures for resolving 

18 complaints of discrimination by employees and 

19 applicants for employment. 

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

21 Court may procure the services of experts and con22 sultants under section 3109 of title 5, United States 

23 Code. 

24 ‘‘(8) RIGHTS TO CERTAIN APPEALS RE25 SERVED.—Notwithstanding any other provision of 
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1 law, an individual who is an employee of the Tax 

2 Court on the day before the effective date of this 

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

4 to— 

5 ‘‘(A) appeal a reduction in grade or re6 moval to the Merit Systems Protection Board 

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

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

9 Systems Protection Board under chapter 75 of 

10 title 5, United States Code, 

11 ‘‘(C) appeal a prohibited personnel practice 

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

13 United States Code, to the Merit Systems Pro14 tection Board under chapter 77 of that title, 

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

16 personnel practice described under section 

17 2302(b) of title 5, United States Code, with the 

18 Office of Special Counsel under chapter 12 of 

19 that title for action in accordance with that 

20 chapter, or 

21 ‘‘(E) file an appeal with the Equal Em22 ployment Opportunity Commission under part 

23 1614 of title 29 of the Code of Federal Regula24 tions, 
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1 shall be entitled to file such appeal or make such an 

2 allegation so long as the individual remains an em3 ployee of the Tax Court. 

4 ‘‘(9) COMPETITIVE STATUS.—Notwithstanding 

5 any other provision of law, any employee of the Tax 

6 Court who has completed at least 1 year of contin7 uous service under a non-temporary appointment 

8 with the Tax Court acquires a competitive status for 

9 appointment to any position in the competitive serv10 ice for which the employee possesses the required 

11 qualifications. 

12 ‘‘(10) MERIT SYSTEM PRINCIPLES; PROHIBITED

13 PERSONNEL PRACTICES; AND PREFERENCE ELIGI14 BLES.—Any personnel management system of the 

15 Tax Court shall— 

16 ‘‘(A) include the principles set forth in sec17 tion 2301(b) of title 5, United States Code; 

18 ‘‘(B) prohibit personnel practices prohib19 ited under section 2302(b) of title 5, United 

20 States Code; and 

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

22 would be a preference eligible in the executive 

23 branch, the Tax Court will provide preference 

24 for that individual in a manner and to an ex-
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1 tent consistent with preference accorded to 

2 preference eligibles in the executive branch.’’. 

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

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

5 Tax Court adopts a personnel management system after 

6 the date of the enactment of this Act. 

7 SEC. 106. EXPANDED USE OF TAX COURT PRACTICE FEE 

8 FOR PRO SE TAXPAYERS. 

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

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

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

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

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

14 of this Act. 

15 TITLE II—TAX COURT PENSION 

16 AND COMPENSATION 

17 SEC. 201. ANNUITIES FOR SURVIVORS OF TAX COURT 

18 JUDGES WHO ARE ASSASSINATED. 

19 (a) ELIGIBILITY IN CASE OF DEATH BY ASSASSINA20 TION.—Subsection (h) of section 7448 (relating to annu21 ities to surviving spouses and dependent children of 

22 judges) is amended to read as follows: 

23 ‘‘(h) ENTITLEMENT TO ANNUITY.— 

24 ‘‘(1) IN GENERAL.— 
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1 ‘‘(A) ANNUITY TO SURVIVING SPOUSE.—If 

2 a judge described in paragraph (2) is survived 

3 by a surviving spouse but not by a dependent 

4 child, there shall be paid to such surviving 

5 spouse an annuity beginning with the day of the 

6 death of the judge or following the surviving 

7 spouse’s attainment of the age of 50 years, 

8 whichever is the later, in an amount computed 

9 as provided in subsection (m). 

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

11 is survived by a surviving spouse and a depend12 ent child or children, there shall be paid to such 

13 surviving spouse an immediate annuity in an 

14 amount computed as provided in subsection 

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

16 of each such child an immediate annuity equal 

17 to the lesser of— 

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

19 salary of such judge (determined in accord20 ance with subsection (m)), or 

21 ‘‘(ii) 20 percent of such average an22 nual salary, divided by the number of such 

23 children. 

24 ‘‘(C) ANNUITY TO SURVIVING DEPENDENT

25 CHILDREN.—If such a judge leaves no surviving 
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1 spouse but leaves a surviving dependent child or 

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

3 each such child an immediate annuity equal to 

4 the lesser of— 

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

6 salary of such judge (determined in accord7 ance with subsection (m)), or 

8 ‘‘(ii) 40 percent of such average an9 nual salary, divided by the number of such 

10 children. 

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

12 to any judge electing under subsection (b)— 

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

14 rendered at least 5 years of civilian service com15 puted as prescribed in subsection (n), for the 

16 last 5 years of which the salary deductions pro17 vided for by subsection (c)(1) or the deposits 

18 required by subsection (d) have actually been 

19 made or the salary deductions required by the 

20 civil service retirement laws have actually been 

21 made, or 

22 ‘‘(B) who dies by assassination after hav23 ing rendered less than 5 years of civilian service 

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

25 the period of such service, the salary deductions 
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1 provided for by subsection (c)(1) or the deposits 

2 required by subsection (d) have actually been 

3 made. 

4 ‘‘(3) TERMINATION OF ANNUITY.— 

5 ‘‘(A) IN THE CASE OF A SURVIVING

6 SPOUSE.—The annuity payable to a surviving 

7 spouse under this subsection shall be terminable 

8 upon such surviving spouse’s death or such sur9 viving spouse’s remarriage before attaining age 

10 55. 

11 ‘‘(B) IN THE CASE OF A CHILD.—The an12 nuity payable to a child under this subsection 

13 shall be terminable upon (i) the child attaining 

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

15 (iii) the child’s death, whichever first occurs, ex16 cept that if such child is incapable of self-sup17 port by reason of mental or physical disability 

18 the child’s annuity shall be terminable only 

19 upon death, marriage, or recovery from such 

20 disability. 

21 ‘‘(C) IN THE CASE OF A DEPENDENT

22 CHILD AFTER DEATH OF SURVIVING SPOUSE.— 

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

24 judge leaving a dependent child or children of 

25 the judge surviving such spouse, the annuity of 
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1 such child or children shall be recomputed and 

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

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

4 which the annuity of a dependent child is termi5 nated under this subsection, the annuities of 

6 any remaining dependent child or children, 

7 based upon the service of the same judge, shall 

8 be recomputed and paid as though the child 

9 whose annuity was so terminated had not sur10 vived such judge. 

11 ‘‘(4) SPECIAL RULE FOR ASSASSINATED

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

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

14 deducted from the annuities otherwise payable under 

15 this section an amount equal to— 

16 ‘‘(A) the amount of salary deductions pro17 vided for by subsection (c)(1) that would have 

18 been made if such deductions had been made 

19 for 5 years of civilian service computed as pre20 scribed in subsection (n) before the judge’s 

21 death, reduced by 

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

23 that were actually made before the date of the 

24 judge’s death.’’. 
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1 (b) DEFINITION OF ASSASSINATION.—Section 

2 7448(a) (relating to definitions) is amended by adding at 

3 the end the following new paragraph: 

4 ‘‘(8) The terms ‘assassinated’ and ‘assassina5 tion’ mean the killing of a judge that is motivated 

6 by the performance by that judge of his or her offi7 cial duties.’’. 

8 (c) DETERMINATION OF ASSASSINATION.—Sub9 section (i) of section 7448 is amended— 

10 (1) by striking the subsection heading and in11 serting the following: 

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

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

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

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

16 paragraph: 

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

18 determine whether the killing of a judge was an as19 sassination, subject to review only by the Tax Court. 

20 The head of any Federal agency that investigates 

21 the killing of a judge shall provide information to 

22 the chief judge that would assist the chief judge in 

23 making such a determination.’’. 

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

25 of section 7448 is amended— 
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1 (1) by striking the subsection heading and in2 serting the following: 

3 ‘‘(m) COMPUTATION OF ANNUITIES.— 

4 ‘‘(1) IN GENERAL.—’’, 

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

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

7 paragraph: 

8 ‘‘(2) ASSASSINATED JUDGES.—In the case of a 

9 judge who is assassinated and who has served less 

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

11 such judge shall be based upon the average annual 

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

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

14 adding at the end the following: 

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

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

17 notwithstanding a survivor’s eligibility for or receipt of 

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

19 except that the annuity for which a surviving spouse is 

20 eligible under this section shall be reduced to the extent 

21 that the total benefits paid under this section and chapter 

22 81 of that title for any year would exceed the current sal23 ary for that year of the office of the judge.’’. 
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1 SEC. 202. COST-OF-LIVING ADJUSTMENTS FOR TAX COURT 

2 JUDICIAL SURVIVOR ANNUITIES. 

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

4 (relating to annuities to surviving spouses and dependent 

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

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

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

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

9 subchapter III of chapter 83 of that title, each annuity 

10 payable from the survivors annuity fund under this section 

11 shall be increased at the same time by the same percent12 age by which annuities are increased under such section 

13 8340(b).’’. 

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

15 this section shall apply with respect to increases made 

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

17 annuities payable under subchapter III of chapter 83 of 

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

19 of this Act. 

20 SEC. 203. LIFE INSURANCE COVERAGE FOR TAX COURT 

21 JUDGES. 

22 (a) IN GENERAL.—Section 7447 (relating to retire23 ment of judges) is amended by adding at the end the fol24 lowing new subsection: 

25 ‘‘(j) LIFE INSURANCE COVERAGE.—For pur26 poses of chapter 87 of title 5, United States Code 
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1 (relating to life insurance), any individual who is 

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

3 under this section is deemed to be an employee who 

4 is continuing in active employment.’’. 

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

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

7 of the United States Tax Court or to any retired judge 

8 of the United States Tax Court on the date of the enact9 ment of this Act. 

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

11 COURT JUDGES AGE 65 OR OVER. 

12 Section 7472 (relating to expenditures) is amended 

13 by inserting after the first sentence the following new sen14 tence: ‘‘Notwithstanding any other provision of law, the 

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

16 age 65 or over, any increase in the cost of Federal Em17 ployees’ Group Life Insurance imposed after April 24, 

18 1999, including any expenses generated by such payments, 

19 as authorized by the chief judge in a manner consistent 

20 with such payments authorized by the Judicial Conference 

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

22 28, United States Code.’’. 
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1 SEC. 205. MODIFICATION OF TIMING OF LUMP-SUM PAY2 MENT OF JUDGES’ ACCRUED ANNUAL LEAVE. 

3 (a) IN GENERAL.—Section 7443 (relating to mem4 bership of the Tax Court) is amended by adding at the 

5 end the following new subsection: 

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

7 ANNUAL LEAVE.—Notwithstanding the provisions of sec8 tions 5551 and 6301 of title 5, United States Code, when 

9 an individual subject to the leave system provided in chap10 ter 63 of that title is appointed by the President to be 

11 a judge of the Tax Court, the individual shall be entitled 

12 to receive, upon appointment to the Tax Court, a lump13 sum payment from the Tax Court of the accumulated and 

14 accrued current annual leave standing to the individual’s 

15 credit as certified by the agency from which the individual 

16 resigned.’’. 

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

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

19 Tax Court who has an outstanding leave balance on the 

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

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

22 United States Tax Court after such date. 
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1 SEC. 206. PARTICIPATION OF TAX COURT JUDGES IN THE 

2 THRIFT SAVINGS PLAN. 

3 (a) IN GENERAL.—Section 7447 (relating to retire4 ment of judges), as amended by this Act, is amended by 

5 adding at the end the following new subsection: 

6 ‘‘(k) THRIFT SAVINGS PLAN.— 

7 ‘‘(1) ELECTION TO CONTRIBUTE.— 

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

9 Court may elect to contribute to the Thrift Sav10 ings Fund established by section 8437 of title 

11 5, United States Code. 

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

13 may be made under this paragraph only during 

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

15 5, United States Code, for individuals subject to 

16 chapter 84 of such title. 

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

18 Except as otherwise provided in this subsection, the 

19 provisions of subchapters III and VII of chapter 84 

20 of title 5, United States Code, shall apply with re21 spect to a judge who makes an election under para22 graph (1). 

23 ‘‘(3) SPECIAL RULES.— 

24 ‘‘(A) AMOUNT CONTRIBUTED.—The 

25 amount contributed by a judge to the Thrift 

26 Savings Fund in any pay period shall not ex-
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1 ceed the maximum percentage of such judge’s 

2 basic pay for such period as allowable under 

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

4 Basic pay does not include any retired pay paid 

5 pursuant to this section. 

6 ‘‘(B) CONTRIBUTIONS FOR BENEFIT OF

7 JUDGE.—No contributions may be made for the 

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

9 5, United States Code. 

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

11 OF TITLE 5 WHETHER OR NOT JUDGE RE12 TIRES.—Section 8433(b) of title 5, United 

13 States Code, applies with respect to a judge 

14 who makes an election under paragraph (1) and 

15 who either— 

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

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

18 Tax Court but does not retire under sub19 section (b). 

20 Retirement under subsection (b) is a separation 

21 from service for purposes of subchapters III 

22 and VII of chapter 84 of that title. 

23 ‘‘(D) APPLICABILITY OF SECTION

24 8351(b)(5) OF TITLE 5.—The provisions of sec25 tion 8351(b)(5) of title 5, United States Code, 
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1 shall apply with respect to a judge who makes 

2 an election under paragraph (1). 

3 ‘‘(E) EXCEPTION.—Notwithstanding sub4 paragraph (C), if any judge retires under this 

5 section, or resigns without having met the age 

6 and service requirements set forth under sub7 section (b)(2), and such judge’s nonforfeitable 

8 account balance is less than an amount that the 

9 Executive Director of the Office of Personnel 

10 Management prescribes by regulation, the Exec11 utive Director shall pay the nonforfeitable ac12 count balance to the participant in a single pay13 ment.’’. 

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

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

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

17 may only begin to participate in the Thrift Savings Plan 

18 at the next open season beginning after such date. 

19 SEC. 207. EXEMPTION OF TEACHING COMPENSATION OF 

20 RETIRED JUDGES FROM LIMITATION ON 

21 OUTSIDE EARNED INCOME. 

22 (a) IN GENERAL.—Section 7447 (relating to retire23 ment of judges), as amended by this Act, is amended by 

24 adding at the end the following new subsection: 
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1 ‘‘(l) TEACHING COMPENSATION OF RETIRED

2 JUDGES.—For purposes of the limitation under section 

3 501(a) of the Ethics in Government Act of 1978 (5 U.S.C. 

4 App.), any compensation for teaching approved under sec5 tion 502(a)(5) of such Act shall not be treated as outside 

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

7 who has retired under subsection (b) for teaching per8 formed during any calendar year for which such a judge 

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

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

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

12 this section shall apply to any individual serving as a re13 tired judge of the United States Tax Court on or after 

14 the date of the enactment of this Act. 

15 SEC. 208. GENERAL PROVISIONS RELATING TO MAG16 ISTRATE JUDGES OF THE TAX COURT. 

17 (a) TITLE OF SPECIAL TRIAL JUDGE CHANGED TO

18 MAGISTRATE JUDGE OF THE TAX COURT.—The heading 

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

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

21 (b) APPOINTMENT, TENURE, AND REMOVAL.—Sub22 section (a) of section 7443A is amended to read as follows: 

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

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

25 from time to time, appoint and reappoint magistrate 
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1 judges of the Tax Court for a term of 8 years. The 

2 magistrate judges of the Tax Court shall proceed 

3 under such rules as may be promulgated by the Tax 

4 Court. 

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

6 judge of the Tax Court during the term for which 

7 he or she is appointed shall be only for incom8 petency, misconduct, neglect of duty, or physical or 

9 mental disability, but the office of a magistrate 

10 judge of the Tax Court shall be terminated if the 

11 judges of the Tax Court determine that the services 

12 performed by the magistrate judge of the Tax Court 

13 are no longer needed. Removal shall not occur unless 

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

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

16 shall be entered, a full specification of the charges 

17 shall be furnished to the magistrate judge of the Tax 

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

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

20 charges.’’. 

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

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

23 (d) EXEMPTION FROM FEDERAL LEAVE PROVI24 SIONS.—Section 7443A is amended by adding at the end 

25 the following new subsection: 
25 

•S 661 RS 

1 ‘‘(f) EXEMPTION FROM FEDERAL LEAVE PROVI2 SIONS.— 

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

4 Tax Court appointed under this section shall be ex5 empt from the provisions of subchapter I of chapter 

6 63 of title 5, United States Code. 

7 ‘‘(2) TREATMENT OF UNUSED LEAVE.— 

8 ‘‘(A) AFTER SERVICE AS MAGISTRATE

9 JUDGE.—If an individual who is exempted 

10 under paragraph (1) from the subchapter re11 ferred to in such paragraph was previously sub12 ject to such subchapter and, without a break in 

13 service, again becomes subject to such sub14 chapter on completion of the individual’s service 

15 as a magistrate judge, the unused annual leave 

16 and sick leave standing to the individual’s credit 

17 when such individual was exempted from this 

18 subchapter is deemed to have remained to the 

19 individual’s credit. 

20 ‘‘(B) COMPUTATION OF ANNUITY.—In 

21 computing an annuity under section 8339 of 

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

23 an individual specified in subparagraph (A) who 

24 retires on an immediate annuity or dies leaving 

25 a survivor or survivors entitled to an annuity 
26 

•S 661 RS 

1 includes, without regard to the limitations im2 posed by subsection (f) of such section 8339, 

3 the days of unused sick leave standing to the 

4 individual’s credit when such individual was ex5 empted from subchapter I of chapter 63 of title 

6 5, United States Code, except that these days 

7 will not be counted in determining average pay 

8 or annuity eligibility. 

9 ‘‘(C) LUMP SUM PAYMENT.—Any accumu10 lated and current accrued annual leave or vaca11 tion balances credited to a magistrate judge as 

12 of the date of the enactment of this subsection 

13 shall be paid in a lump sum at the time of sepa14 ration from service pursuant to the provisions 

15 and restrictions set forth in section 5551 of 

16 title 5, United States Code, and related provi17 sions referred to in such section.’’. 

18 (e) CONFORMING AMENDMENTS.— 

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

20 7443A is amended by striking ‘‘SPECIAL TRIAL

21 JUDGES’’ and inserting ‘‘MAGISTRATE JUDGES OF

22 THE TAX COURT’’. 

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

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

25 ‘‘magistrate judges of the Tax Court’’. 
27 

•S 661 RS 

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

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

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

4 place it appears. 

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

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

7 judges of the Tax Court’’. 

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

9 ‘‘special trial judge’’ each place it appears and in10 serting ‘‘magistrate judge’’. 

11 (6) Subsection (c) of section 7471 is amend12 ed— 

13 (A) by striking the subsection heading and 

14 inserting ‘‘MAGISTRATE JUDGES OF THE TAX

15 COURT.—’’, and 

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

17 inserting ‘‘magistrate judges’’. 

18 SEC. 209. ANNUITIES TO SURVIVING SPOUSES AND DE19 PENDENT CHILDREN OF MAGISTRATE 

20 JUDGES OF THE TAX COURT. 

21 (a) DEFINITIONS.—Section 7448(a) (relating to defi22 nitions), as amended by this Act, is amended by redesig23 nating paragraphs (5), (6), (7), and (8) as paragraphs (7), 

24 (8), (9), and (10), respectively, and by inserting after 

25 paragraph (4) the following new paragraphs: 
28 

•S 661 RS 

1 ‘‘(5) The term ‘magistrate judge’ means a judi2 cial officer appointed pursuant to section 7443A, in3 cluding any individual receiving an annuity under 

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

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

6 not performing judicial duties under section 7443C. 

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

8 means the salary of a magistrate judge received 

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

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

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

12 and compensation received under section 7443C.’’. 

13 (b) ELECTION.—Subsection (b) of section 7448 (re14 lating to annuities to surviving spouses and dependent 

15 children of judges) is amended— 

16 (1) by striking the subsection heading and in17 serting the following: 

18 ‘‘(b) ELECTION.— 

19 ‘‘(1) JUDGES.—’’, 

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

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

22 paragraph: 

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

24 judge may by written election filed with the chief 

25 judge bring himself or herself within the purview of 
29 

•S 661 RS 

1 this section. Such election shall be filed not later 

2 than the later of 6 months after— 

3 ‘‘(A) 6 months after the date of the enact4 ment of this paragraph, 

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

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

7 (c) CONFORMING AMENDMENTS.— 

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

9 inserting ‘‘AND MAGISTRATE JUDGES’’ after 

10 ‘‘JUDGES’’. 

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

12 table of sections for part I of subchapter C of chap13 ter 76 is amended by inserting ‘‘and magistrate 

14 judges’’ after ‘‘judges’’. 

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

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

17 this Act, are each amended— 

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

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

20 in the phrase ‘‘chief judge’’, and 

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

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

23 (4) Section 7448(c) is amended— 
30 

•S 661 RS 

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

2 Court judges’’ and inserting ‘‘Tax Court judi3 cial officers’’, 

4 (B) in paragraph (2)— 

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

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

7 and 

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

9 ‘‘subsection (a)(4)’’ and inserting ‘‘sub10 sections (a)(4) and (a)(6)’’. 

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

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

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

14 ‘‘retired pay’’. 

15 (6) Section 7448(j)(1) is amended— 

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

17 ‘‘service or retired’’ and inserting ‘‘service, re18 tired’’, and by inserting ‘‘, or receiving any an19 nuity under section 7443B or chapters 83 or 84 

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

21 7447’’, and 

22 (B) in the last sentence, by striking ‘‘sub23 sections (a)(6) and (7)’’ and inserting ‘‘para24 graphs (8) and (9) of subsection (a)’’. 
31 

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

2 Act, is amended— 

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

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

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

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

7 ‘‘7447(f)(4)’’. 

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

9 ‘‘his years of service pursuant to any appointment 

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

11 (9) Section 3121(b)(5)(E) is amended by in12 serting ‘‘or magistrate judge’’ before ‘‘of the United 

13 States Tax Court’’. 

14 (10) Section 210(a)(5)(E) of the Social Secu15 rity Act is amended by inserting ‘‘or magistrate 

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

17 SEC. 210. RETIREMENT AND ANNUITY PROGRAM. 

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

19 of subchapter C of chapter 76 is amended by inserting 

20 after section 7443A the following new section: 

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

22 THE TAX COURT. 

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

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

25 applies and who retires from office after attaining the age 
32 

•S 661 RS 

1 of 65 years and serving at least 14 years, whether continu2 ously or otherwise, as such magistrate judge shall, subject 

3 to subsection (f), be entitled to receive, during the remain4 der of the magistrate judge’s lifetime, an annuity equal 

5 to the salary being received at the time the magistrate 

6 judge leaves office. 

7 ‘‘(b) RETIREMENT UPON FAILURE OF REAPPOINT8 MENT.—A magistrate judge of the Tax Court to whom 

9 this section applies who is not reappointed following the 

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

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

12 subject to subsection (f), be entitled to receive, upon at13 taining the age of 65 years and during the remainder of 

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

15 portion of the salary being received at the time the mag16 istrate judge leaves office which the aggregate number of 

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

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

19 1 full term as a magistrate judge, and 

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

21 on which the term of office of such magistrate judge 

22 expires, and not later than 6 months before such 

23 date, such magistrate judge notified the chief judge 

24 of the Tax Court in writing that such magistrate 
33 

•S 661 RS 

1 judge was willing to accept reappointment to the po2 sition in which such magistrate judge was serving. 

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

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

5 who retires after serving at least 8 years, whether continu6 ously or otherwise, as such a magistrate judge shall, sub7 ject to subsection (f), be entitled to receive, upon attaining 

8 the age of 65 years and during the remainder of the mag9 istrate judge’s lifetime, an annuity equal to that portion 

10 of the salary being received at the time the magistrate 

11 judge leaves office which the aggregate number of years 

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

shall be reduced by 1 13 ⁄6 of 1 percent for each full month 

14 such magistrate judge was under the age of 65 at the time 

15 the magistrate judge left office, except that such reduction 

16 shall not exceed 20 percent. 

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

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

19 has served at least 5 years, whether continuously or other20 wise, as such a magistrate judge, and who retires or is 

21 removed from office upon the sole ground of mental or 

22 physical disability shall, subject to subsection (f), be enti23 tled to receive, during the remainder of the magistrate 

24 judge’s lifetime, an annuity equal to 40 percent of the sal25 ary being received at the time of retirement or removal 
34 

•S 661 RS 

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

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

3 the salary being received at the time of retirement or re4 moval which the aggregate number of years of service, not 

5 to exceed 14, bears to 14. 

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

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

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

9 in such annuity, calculated and payable in the same man10 ner as adjustments under section 8340(b) of title 5, 

11 United States Code, except that any such annuity, as in12 creased under this subsection, may not exceed the salary 

13 then payable for the position from which the magistrate 

14 judge retired or was removed. 

15 ‘‘(f) ELECTION; ANNUITY IN LIEU OF OTHER ANNU16 ITIES.— 

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

18 Tax Court shall be entitled to an annuity under this 

19 section if the magistrate judge elects an annuity 

20 under this section by notifying the chief judge of the 

21 Tax Court not later than the later of— 

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

23 the Tax Court begins judicial service, or 

24 ‘‘(B) 5 years after the date of the enact25 ment of this subsection. 
35 

•S 661 RS 

1 Such notice shall be given in accordance with proce2 dures prescribed by the Tax Court. 

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

4 A magistrate judge who elects to receive an annuity 

5 under this section shall not be entitled to receive— 

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

7 judge would otherwise have been entitled under 

8 subchapter III of chapter 83, or under chapter 

9 84 (except for subchapters III and VII), of title 

10 5, United States Code, for service performed as 

11 a magistrate or otherwise, 

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

13 or retirement under section 371 or 372 of title 

14 28, United States Code, 

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

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

17 title 38, United States Code. 

18 ‘‘(3) COORDINATION WITH TITLE 5.—A mag19 istrate judge of the Tax Court who elects to receive 

20 an annuity under this section— 

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

22 contributions otherwise required by section 

23 8334(a) of title 5, United States Code, 
36 

•S 661 RS 

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

2 of chapter 84 (other than subchapters III and 

3 VII) of such title 5, and 

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

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

6 case may be. 

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

8 calculating an annuity under this section— 

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

10 Court to whom this section applies may be credited, 

11 and 

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

1 13 ⁄12 of a year, and the fractional part of any month 

14 shall not be credited. 

15 ‘‘(h) COVERED POSITIONS AND SERVICE.—This sec16 tion applies to any magistrate judge of the Tax Court or 

17 special trial judge of the Tax Court appointed under this 

18 subchapter, but only with respect to service as such a mag19 istrate judge or special trial judge after a date not earlier 

than 91 20 ⁄2 years before the date of the enactment of this 

21 subsection. 

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

23 ‘‘(1) IN GENERAL.—Payments under this sec24 tion which would otherwise be made to a magistrate 

25 judge of the Tax Court based upon his or her service 
37 

•S 661 RS 

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

2 of the Tax Court to another person if and to the ex3 tent expressly provided for in the terms of any court 

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

5 the terms of any court order or court-approved prop6 erty settlement agreement incident to any court de7 cree of divorce, annulment, or legal separation. Any 

8 payment under this paragraph to a person bars re9 covery by any other person. 

10 ‘‘(2) REQUIREMENTS FOR PAYMENT.—Para11 graph (1) shall apply only to payments made by the 

12 chief judge of the Tax Court after the date of re13 ceipt by the chief judge of written notice of such de14 cree, order, or agreement, and such additional infor15 mation as the chief judge may prescribe. 

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

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

18 State, the District of Columbia, the Commonwealth 

19 of Puerto Rico, Guam, the Northern Mariana Is20 lands, or the Virgin Islands, and any Indian tribal 

21 court or courts of Indian offense. 

22 ‘‘(j) DEDUCTIONS, CONTRIBUTIONS, AND DEPOS23 ITS.— 

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

25 pay period after the chief judge of the Tax Court re-
38 

•S 661 RS 

1 ceives a notice under subsection (f) that a mag2 istrate judge of the Tax Court has elected an annu3 ity under this section, the chief judge shall deduct 

4 and withhold 1 percent of the salary of such mag5 istrate judge. Amounts shall be so deducted and 

6 withheld in a manner determined by the chief judge. 

7 Amounts deducted and withheld under this sub8 section shall be deposited in the Treasury of the 

9 United States to the credit of the Tax Court Judi10 cial Officers’ Retirement Fund. Deductions under 

11 this subsection from the salary of a magistrate judge 

12 shall terminate upon the retirement of the mag13 istrate judge or upon completion of 14 years of serv14 ice for which contributions under this section have 

15 been made, whether continuously or otherwise, as 

16 calculated under subsection (g), whichever occurs 

17 first. 

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

19 CLAIMS.—Each magistrate judge of the Tax Court 

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

21 deemed to consent and agree to the deductions from 

22 salary which are made under paragraph (1). Pay23 ment of such salary less such deductions (and any 

24 deductions made under section 7448) is a full and 

25 complete discharge and acquittance of all claims and 
39 

•S 661 RS 

1 demands for all services rendered by such magistrate 

2 judge during the period covered by such payment, 

3 except the right to those benefits to which the mag4 istrate judge is entitled under this section (and sec5 tion 7448). 

6 ‘‘(k) DEPOSITS FOR PRIOR SERVICE.—Each mag7 istrate judge of the Tax Court who makes an election 

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

9 before such election for which contributions may be made 

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

11 salary received for that service. Credit for any period cov12 ered by that service may not be allowed for purposes of 

13 an annuity under this section until a deposit under this 

14 subsection has been made for that period. 

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

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

17 the amounts deposited under subsection (k), shall be cred18 ited to individual accounts in the name of each magistrate 

19 judge of the Tax Court from whom such amounts are re20 ceived, for credit to the Tax Court Judicial Officers’ Re21 tirement Fund. 

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

23 ‘‘(1) 1-YEAR FORFEITURE FOR FAILURE TO

24 PERFORM JUDICIAL DUTIES.—Subject to paragraph 

25 (3), any magistrate judge of the Tax Court who re-
40 

•S 661 RS 

1 tires under this section and who fails to perform ju2 dicial duties required of such individual by section 

3 7443C shall forfeit all rights to an annuity under 

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

5 1st day on which such individual fails to perform 

6 such duties. 

7 ‘‘(2) PERMANENT FORFEITURE OF RETIRED

8 PAY WHERE CERTAIN NON-GOVERNMENT SERVICES

9 PERFORMED.—Subject to paragraph (3), any mag10 istrate judge of the Tax Court who retires under this 

11 section and who thereafter performs (or supervises 

12 or directs the performance of) legal or accounting 

13 services in the field of Federal taxation for the indi14 vidual’s client, the individual’s employer, or any of 

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

16 annuity under this section for all periods beginning 

17 on or after the first day on which the individual per18 forms (or supervises or directs the performance of) 

19 such services. The preceding sentence shall not apply 

20 to any civil office or employment under the Govern21 ment of the United States. 

22 ‘‘(3) FORFEITURES NOT TO APPLY WHERE IN23 DIVIDUAL ELECTS TO FREEZE AMOUNT OF ANNU24 ITY.— 
41 

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

2 of the Tax Court makes an election under this 

3 paragraph— 

4 ‘‘(i) paragraphs (1) and (2) (and sec5 tion 7443C) shall not apply to such mag6 istrate judge beginning on the date such 

7 election takes effect, and 

8 ‘‘(ii) the annuity payable under this 

9 section to such magistrate judge, for peri10 ods beginning on or after the date such 

11 election takes effect, shall be equal to the 

12 annuity to which such magistrate judge is 

13 entitled on the day before such effective 

14 date. 

15 ‘‘(B) ELECTION REQUIREMENTS.—An elec16 tion under subparagraph (A)— 

17 ‘‘(i) may be made by a magistrate 

18 judge of the Tax Court eligible for retire19 ment under this section, and 

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

21 of the Tax Court. 

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

23 irrevocable. 

24 ‘‘(C) EFFECTIVE DATE OF ELECTION.— 

25 Any election under subparagraph (A) shall take 
42 

•S 661 RS 

1 effect on the first day of the first month fol2 lowing the month in which the election is made. 

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

4 magistrate judge of the Tax Court who retires under 

5 this section and thereafter accepts compensation for 

6 civil office or employment under the United States 

7 Government (other than for the performance of 

8 functions as a magistrate judge of the Tax Court 

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

10 annuity under this section for the period for which 

11 such compensation is received. For purposes of this 

12 paragraph, the term ‘compensation’ includes retired 

13 pay or salary received in retired status. 

14 ‘‘(n) LUMP-SUM PAYMENTS.— 

15 ‘‘(1) ELIGIBILITY.— 

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

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

18 judge of the Tax Court and— 

19 ‘‘(i) who leaves office and is not re20 appointed as a magistrate judge of the Tax 

21 Court for at least 31 consecutive days, 

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

23 chief judge of the Tax Court for payment 

24 of a lump-sum credit, 
43 

•S 661 RS 

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

2 judge of the Tax Court at the time of fil3 ing of the application, and 

4 ‘‘(iv) will not become eligible to re5 ceive an annuity under this section within 

6 31 days after filing the application, 

7 is entitled to be paid the lump-sum credit. Pay8 ment of the lump-sum credit voids all rights to 

9 an annuity under this section based on the serv10 ice on which the lump-sum credit is based, until 

11 that individual resumes office as a magistrate 

12 judge of the Tax Court. 

13 ‘‘(B) PAYMENT TO SURVIVORS.—Lump14 sum benefits authorized by subparagraphs (C), 

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

16 the person or persons surviving the magistrate 

17 judge of the Tax Court and alive on the date 

18 title to the payment arises, in the order of prec19 edence set forth in subsection (o) of section 376 

20 of title 28, United States Code, and in accord21 ance with the last 2 sentences of paragraph (1) 

22 of that subsection. For purposes of the pre23 ceding sentence, the term ‘judicial official’ as 

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

25 be deemed to mean ‘magistrate judge of the 
44 

•S 661 RS 

1 Tax Court’ and the terms ‘Administrative Of2 fice of the United States Courts’ and ‘Director 

3 of the Administrative Office of the United 

4 States Courts’ shall be deemed to mean ‘chief 

5 judge of the Tax Court’. 

6 ‘‘(C) PAYMENT UPON DEATH OF JUDGE

7 BEFORE RECEIPT OF ANNUITY.—If a mag8 istrate judge of the Tax Court dies before re9 ceiving an annuity under this section, the lump10 sum credit shall be paid. 

11 ‘‘(D) PAYMENT OF ANNUITY REMAIN12 DER.—If all annuity rights under this section 

13 based on the service of a deceased magistrate 

14 judge of the Tax Court terminate before the 

15 total annuity paid equals the lump-sum credit, 

16 the difference shall be paid. 

17 ‘‘(E) PAYMENT UPON DEATH OF JUDGE

18 DURING RECEIPT OF ANNUITY.—If a magistrate 

19 judge of the Tax Court who is receiving an an20 nuity under this section dies, any accrued annu21 ity benefits remaining unpaid shall be paid. 

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

23 accrued annuity benefits remaining unpaid on 

24 the termination, except by death, of the annuity 
45 

•S 661 RS 

1 of a magistrate judge of the Tax Court shall be 

2 paid to that individual. 

3 ‘‘(G) PAYMENT UPON ACCEPTING OTHER

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

5 magistrate judge of the Tax Court who forfeits 

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

7 before the total annuity paid equals the lump8 sum credit shall be entitled to be paid the dif9 ference if the magistrate judge of the Tax 

10 Court files an application with the chief judge 

11 of the Tax Court for payment of that dif12 ference. A payment under this subparagraph 

13 voids all rights to an annuity on which the pay14 ment is based. 

15 ‘‘(2) SPOUSES AND FORMER SPOUSES.— 

16 ‘‘(A) IN GENERAL.—Payment of the lump17 sum credit under paragraph (1)(A) or a pay18 ment under paragraph (1)(G)— 

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

20 spouse and any former spouse of the mag21 istrate judge of the Tax Court are notified 

22 of the magistrate judge’s application, and 

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

24 a court decree of divorce, annulment, or 

25 legal separation, or any court or court ap-
46 

•S 661 RS 

1 proved property settlement agreement inci2 dent to such decree, if— 

3 ‘‘(I) the decree, order, or agree4 ment expressly relates to any portion 

5 of the lump-sum credit or other pay6 ment involved, and 

7 ‘‘(II) payment of the lump-sum 

8 credit or other payment would extin9 guish entitlement of the magistrate 

10 judge’s spouse or former spouse to 

11 any portion of an annuity under sub12 section (i). 

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

14 spouse or former spouse under this paragraph 

15 shall be made in accordance with such proce16 dures as the chief judge of the Tax Court shall 

17 prescribe. The chief judge may provide under 

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

19 be waived with respect to a spouse or former 

20 spouse if the magistrate judge establishes to the 

21 satisfaction of the chief judge that the where22 abouts of such spouse or former spouse cannot 

23 be determined. 

24 ‘‘(C) RESOLUTION OF 2 OR MORE OR25 DERS.—The chief judge shall prescribe proce-
47 

•S 661 RS 

1 dures under which this paragraph shall be ap2 plied in any case in which the chief judge re3 ceives 2 or more orders or decrees described in 

4 subparagraph (A). 

5 ‘‘(3) DEFINITION.—For purposes of this sub6 section, the term ‘lump-sum credit’ means the 

7 unrefunded amount consisting of— 

8 ‘‘(A) retirement deductions made under 

9 this section from the salary of a magistrate 

10 judge of the Tax Court, 

11 ‘‘(B) amounts deposited under subsection 

12 (k) by a magistrate judge of the Tax Court cov13 ering earlier service, and 

14 ‘‘(C) interest on the deductions and depos15 its which, for any calendar year, shall be equal 

16 to the overall average yield to the Tax Court 

17 Judicial Officers’ Retirement Fund during the 

18 preceding fiscal year from all obligations pur19 chased by the Secretary during such fiscal year 

20 under subsection (o); but does not include inter21 est— 

22 ‘‘(i) if the service covered thereby ag23 gregates 1 year or less, or 

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

25 month in the total service. 
48 

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

2 FUND.— 

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

4 the Treasury a fund which shall be known as the 

5 ‘Tax Court Judicial Officers’ Retirement Fund’. 

6 Amounts in the Fund are authorized to be appro7 priated for the payment of annuities, refunds, and 

8 other payments under this section. 

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

10 shall invest, in interest bearing securities of the 

11 United States, such currently available portions of 

12 the Tax Court Judicial Officers’ Retirement Fund as 

13 are not immediately required for payments from the 

14 Fund. The income derived from these investments 

15 constitutes a part of the Fund. 

16 ‘‘(3) UNFUNDED LIABILITY.— 

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

18 to be appropriated to the Tax Court Judicial 

19 Officers’ Retirement Fund amounts required to 

20 reduce to zero the unfunded liability of the 

21 Fund. 

22 ‘‘(B) UNFUNDED LIABILITY.—For pur23 poses of subparagraph (A), the term ‘unfunded 

24 liability’ means the estimated excess, deter25 mined on an annual basis in accordance with 
49 

•S 661 RS 

1 the provisions of section 9503 of title 31, 

2 United States Code, of the present value of all 

3 benefits payable from the Tax Court Judicial 

4 Officers’ Retirement Fund over the sum of— 

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

6 be withheld under this section from the fu7 ture basic pay of magistrate judges of the 

8 Tax Court, plus 

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

10 date the unfunded liability is determined. 

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

12 ‘‘(1) ELECTION TO CONTRIBUTE.— 

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

14 the Tax Court who elects to receive an annuity 

15 under this section or under section 211 of the 

16 United States Tax Court Modernization Act 

17 may elect to contribute an amount of such indi18 vidual’s basic pay to the Thrift Savings Fund 

19 established by section 8437 of title 5, United 

20 States Code. 

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

22 may be made under this paragraph only during 

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

24 5, United States Code, for individuals subject to 

25 chapter 84 of such title. 
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1 ‘‘(2) APPLICABILITY OF TITLE 5 PROVISIONS.— 

2 Except as otherwise provided in this subsection, the 

3 provisions of subchapters III and VII of chapter 84 

4 of title 5, United States Code, shall apply with re5 spect to a magistrate judge who makes an election 

6 under paragraph (1). 

7 ‘‘(3) SPECIAL RULES.— 

8 ‘‘(A) AMOUNT CONTRIBUTED.—The 

9 amount contributed by a magistrate judge to 

10 the Thrift Savings Fund in any pay period shall 

11 not exceed the maximum percentage of such 

12 judge’s basic pay for such pay period as allow13 able under section 8440f of title 5, United 

14 States Code. 

15 ‘‘(B) CONTRIBUTIONS FOR BENEFIT OF

16 JUDGE.—No contributions may be made for the 

17 benefit of a magistrate judge under section 

18 8432(c) of title 5, United States Code. 

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

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

21 States Code, applies with respect to a mag22 istrate judge who makes an election under para23 graph (1) and— 

24 ‘‘(i) who retires entitled to an imme25 diate annuity under this section (including 
51 

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1 a disability annuity under subsection (d) of 

2 this section) or section 211 of the United 

3 States Tax Court Modernization Act, 

4 ‘‘(ii) who retires before attaining age 

5 65 but is entitled, upon attaining age 65, 

6 to an annuity under this section or section 

7 211 of the United States Tax Court Mod8 ernization Act, or 

9 ‘‘(iii) who retires before becoming en10 titled to an immediate annuity, or an an11 nuity upon attaining age 65, under this 

12 section or section 211 of the United States 

13 Tax Court Modernization Act. 

14 ‘‘(D) SEPARATION FROM SERVICE.—With 

15 respect to a magistrate judge to whom this sub16 section applies, retirement under this section or 

17 section 211 of the United States Tax Court 

18 Modernization Act is a separation from service 

19 for purposes of subchapters III and VII of 

20 chapter 84 of title 5, United States Code. 

21 ‘‘(4) DEFINITIONS.—For purposes of this sub22 section, the terms ‘retirement’ and ‘retire’ include 

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

24 the sole ground of mental or physical disability. 
52 

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

2 judge who receives a distribution from the Thrift 

3 Savings Fund and who later receives an annuity 

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

5 amount equal to the amount which represents the 

6 Government’s contribution to that person’s Thrift 

7 Savings Account, without regard to earnings attrib8 utable to that amount. Where such an offset would 

9 exceed 50 percent of the annuity to be received in 

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

11 the first 2 years in which that person receives the 

12 annuity. 

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

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

15 retires under circumstances making such magistrate 

16 judge eligible to make an election under subsection 

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

18 and such magistrate judge’s nonforfeitable account 

19 balance is less than an amount that the Executive 

20 Director of the Office of Personnel Management pre21 scribes by regulation, the Executive Director shall 

22 pay the nonforfeitable account balance to the partici23 pant in a single payment.’’. 

24 (b) CONFORMING AMENDMENT.—The table of sec25 tions for part I of subchapter C of chapter 76 is amended 
53 

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

2 following new item: 

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

Court.’’. 

3 SEC. 211. INCUMBENT MAGISTRATE JUDGES OF THE TAX 

4 COURT. 

5 (a) RETIREMENT ANNUITY UNDER TITLE 5 AND

6 SECTION 7443B OF THE INTERNAL REVENUE CODE OF

7 1986.—A magistrate judge of the United States Tax 

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

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

10 of the annuity otherwise provided under the amendments 

11 made by this title, to— 

12 (1) an annuity under subchapter III of chapter 

13 83, or under chapter 84 (except for subchapters III 

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

15 may be, for creditable service before the date on 

16 which service would begin to be credited for pur17 poses of paragraph (2), and 

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

19 or (c) and subsection (g) of section 7443B of the In20 ternal Revenue Code of 1986, as added by this Act, 

21 for any service as a magistrate judge of the United 

22 States Tax Court or special trial judge of the United 

23 States Tax Court but only with respect to service as 

24 such a magistrate judge or special trial judge after 
54 

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a date not earlier than 91 1 ⁄2 years prior to the date 

2 of the enactment of this Act (as specified in the elec3 tion pursuant to subsection (b)) for which deduc4 tions and deposits are made under subsections (j) 

5 and (k) of such section 7443B, as applicable, with6 out regard to the minimum number of years of serv7 ice as such a magistrate judge of the United States 

8 Tax Court, except that— 

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

10 retired with less than 8 years of service, the an11 nuity under subsection (c) of such section 

12 7443B shall be equal to that proportion of the 

13 salary being received at the time the magistrate 

14 judge leaves office which the years of service 

15 bears to 14, subject to a reduction in accordance 

16 with subsection (c) of such section 7443B if the 

17 magistrate judge is under age 65 at the time he 

18 or she leaves office, and 

19 (B) the aggregate amount of the annuity 

20 initially payable on retirement under this sub21 section may not exceed the rate of pay for the 

22 magistrate judge which is in effect on the day 

23 before the retirement becomes effective. 

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

25 judge of the United States Tax Court shall be entitled to 
55 

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1 an annuity under this section only if the magistrate judge 

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

3 United States Tax Court specifying the date on which 

4 service would begin to be credited under section 7443B 

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

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

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

8 such procedures as the chief judge of the United States 

9 Tax Court shall prescribe. 

10 (c) LUMP-SUM CREDIT UNDER TITLE 5.—A mag11 istrate judge of the United States Tax Court who makes 

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

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

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

15 which is covered under section 7443B of the Internal Rev16 enue Code of 1986, as added by this Act, pursuant to that 

17 election, and with respect to which any contributions were 

18 made by the magistrate judge under the applicable provi19 sions of title 5, United States Code. 

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

21 of the United States Tax Court receiving an annuity under 

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

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

24 Act— 
56 

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1 (1) the amount of compensation which such re2 called magistrate judge receives under such section 

3 7443C shall be calculated on the basis of the annu4 ity received under this section, and 

5 (2) such recalled magistrate judge of the United 

6 States Tax Court may serve as a reemployed annu7 itant to the extent otherwise permitted under title 5, 

8 United States Code. 

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

10 1986, as added by this Act, shall not apply with respect 

11 to service as a reemployed annuitant described in para12 graph (2). 

13 SEC. 212. PROVISIONS FOR RECALL. 

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

15 76, as amended by this Act, is amended by inserting after 

16 section 7443B the following new section: 

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

18 COURT. 

19 ‘‘(a) RECALLING OF RETIRED MAGISTRATE

20 JUDGES.—Any individual who has retired pursuant to sec21 tion 7443B or the applicable provisions of title 5, United 

22 States Code, upon reaching the age and service require23 ments established therein, may at or after retirement be 

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

25 such judicial duties with the Tax Court as may be re-
57 

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1 quested of such individual for any period or periods speci2 fied by the chief judge; except that in the case of any such 

3 individual— 

4 ‘‘(1) the aggregate of such periods in any 1 cal5 endar year shall not (without such individual’s con6 sent) exceed 90 calendar days, and 

7 ‘‘(2) such individual shall be relieved of per8 forming such duties during any period in which ill9 ness or disability precludes the performance of such 

10 duties. 

11 Any act, or failure to act, by an individual performing ju12 dicial duties pursuant to this subsection shall have the 

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

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

15 ‘‘(b) COMPENSATION.—For the year in which a pe16 riod of recall occurs, the magistrate judge shall receive, 

17 in addition to the annuity provided under the provisions 

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

19 5, United States Code, an amount equal to the difference 

20 between that annuity and the current salary of the office 

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

22 the magistrate judge who completes that period of service, 

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

24 under section 7443B, shall be equal to the salary in effect 
58 

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1 at the end of the year in which the period of recall oc2 curred for the office from which such individual retired. 

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

4 this section may be implemented under such rules as may 

5 be promulgated by the Tax Court.’’. 

6 (b) CONFORMING AMENDMENT.—The table of sec7 tions for part I of subchapter C of chapter 76, as amended 

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

9 to section 7443B the following new item: 

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

10 SEC. 213. EFFECTIVE DATE. 

11 Except as otherwise provided, the amendments made 

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

13 of this Act. 

14 SECTION 1. SHORT TITLE; ETC. 

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

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

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

18 expressly provided, whenever in this Act an amendment or 

19 repeal is expressed in terms of an amendment to, or repeal 

20 of, a section or other provision, the reference shall be consid21 ered to be made to a section or other provision of the Inter22 nal Revenue Code of 1986. 

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

24 this Act is as follows: 

Sec. 1. Short title; etc. 
59 

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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. 

1 TITLE I—TAX COURT 

2 PROCEDURE 

3 SEC. 101. JURISDICTION OF TAX COURT OVER COLLECTION 

4 DUE PROCESS CASES. 

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

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

7 as follows: 

8 ‘‘(1) JUDICIAL REVIEW OF DETERMINATION.— 

9 The person may, within 30 days of a determination 

10 under this section, appeal such determination to the 

11 Tax Court (and the Tax Court shall have jurisdiction 

12 with respect to such matter).’’. 
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1 (b) EFFECTIVE DATE.—The amendment made by this 

2 section shall apply to determinations made after the date 

3 which is 60 days after the date of the enactment of this 

4 Act. 

5 SEC. 102. AUTHORITY FOR SPECIAL TRIAL JUDGES TO 

6 HEAR AND DECIDE CERTAIN EMPLOYMENT 

7 STATUS CASES. 

8 (a) IN GENERAL.—Section 7443A(b) (relating to pro9 ceedings which may be assigned to special trial judges) is 

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

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

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

13 ‘‘(5) any proceeding under section 7436(c), and’’. 

14 (b) CONFORMING AMENDMENT.—Section 7443A(c) is 

15 amended by striking ‘‘or (4)’’ and inserting ‘‘(4), or (5)’’. 

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

17 section shall apply to any proceeding under section 7436(c) 

18 of the Internal Revenue Code of 1986 with respect to which 

19 a decision has not become final (as determined under sec20 tion 7481 of such Code) before the date of the enactment 

21 of this Act. 
61 

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1 SEC. 103. CONFIRMATION OF AUTHORITY OF TAX COURT TO 

2 APPLY DOCTRINE OF EQUITABLE 

3 RECOUPMENT. 

4 (a) CONFIRMATION OF AUTHORITY OF TAX COURT TO

5 APPLY DOCTRINE OF EQUITABLE RECOUPMENT.—Section 

6 6214(b) (relating to jurisdiction over other years and quar7 ters) is amended by adding at the end the following new 

8 sentence: ‘‘Notwithstanding the preceding sentence, the Tax 

9 Court may apply the doctrine of equitable recoupment to 

10 the same extent that it is available in civil tax cases before 

11 the district courts of the United States and the United 

12 States Court of Federal Claims.’’. 

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

14 section shall apply to any action or proceeding in the 

15 United States Tax Court with respect to which a decision 

16 has not become final (as determined under section 7481 of 

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

18 enactment of this Act. 

19 SEC. 104. TAX COURT FILING FEE IN ALL CASES COM20 MENCED BY FILING PETITION. 

21 (a) IN GENERAL.—Section 7451 (relating to fee for fil22 ing a Tax Court petition) is amended by striking all that 

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

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

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

26 Act. 
62 

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1 SEC. 105. AMENDMENTS TO APPOINT EMPLOYEES. 

2 (a) IN GENERAL.—Subsection (a) of section 7471 (re3 lating to Tax Court employees) is amended to read as fol4 lows: 

5 ‘‘(a) APPOINTMENT AND COMPENSATION.— 

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

7 clerk without regard to the provisions of title 5, 

8 United States Code, governing appointments in the 

9 competitive service. The clerk shall serve at the pleas10 ure of the Tax Court. 

11 ‘‘(2) LAW CLERKS AND SECRETARIES.— 

12 ‘‘(A) IN GENERAL.—The judges and special 

13 trial judges of the Tax Court may appoint law 

14 clerks and secretaries, in such numbers as the 

15 Tax Court may approve, without regard to the 

16 provisions of title 5, United States Code, gov17 erning appointments in the competitive service. 

18 Any such law clerk or secretary shall serve at the 

19 pleasure of the appointing judge. 

20 ‘‘(B) EXEMPTION FROM FEDERAL LEAVE

21 PROVISIONS.—A law clerk appointed under this 

22 subsection shall be exempt from the provisions of 

23 subchapter I of chapter 63 of title 5, United 

24 States Code. Any unused sick leave or annual 

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

26 effective date of this subsection shall remain 
63 

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1 credited to the employee and shall be available to 

2 the employee upon separation from the Federal 

3 Government. 

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

5 appoint necessary employees without regard to the 

6 provisions of title 5, United States Code, governing 

7 appointments in the competitive service. Such em8 ployees shall be subject to removal by the Tax Court. 

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

10 the compensation for the clerk and other employees of 

11 the Tax Court without regard to the provisions of 

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

13 5373 of title 5, United States Code. To the maximum 

14 extent feasible, the Tax Court shall compensate em15 ployees at rates consistent with those for employees 

16 holding comparable positions in the judicial branch. 

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

18 programs for employee evaluations, incentive awards, 

19 flexible work schedules, premium pay, and resolution 

20 of employee grievances. 

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

22 Court shall— 

23 ‘‘(A) prohibit discrimination on the basis of 

24 race, color, religion, age, sex, national origin, po-
64 

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1 litical affiliation, marital status, or handi2 capping condition; and 

3 ‘‘(B) promulgate procedures for resolving 

4 complaints of discrimination by employees and 

5 applicants for employment. 

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

7 Court may procure the services of experts and consult8 ants under section 3109 of title 5, United States Code. 

9 ‘‘(8) RIGHTS TO CERTAIN APPEALS RESERVED.— 

10 Notwithstanding any other provision of law, an indi11 vidual who is an employee of the Tax Court on the 

12 day before the effective date of this subsection and 

13 who, as of that day, was entitled to— 

14 ‘‘(A) appeal a reduction in grade or re15 moval to the Merit Systems Protection Board 

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

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

18 Systems Protection Board under chapter 75 of 

19 title 5, United States Code, 

20 ‘‘(C) appeal a prohibited personnel practice 

21 described under section 2302(b) of title 5, United 

22 States Code, to the Merit Systems Protection 

23 Board under chapter 77 of that title, 

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

25 personnel practice described under section 
65 

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1 2302(b) of title 5, United States Code, with the 

2 Office of Special Counsel under chapter 12 of 

3 that title for action in accordance with that 

4 chapter, or 

5 ‘‘(E) file an appeal with the Equal Employ6 ment Opportunity Commission under part 1614 

7 of title 29 of the Code of Federal Regulations, 

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

9 allegation so long as the individual remains an em10 ployee of the Tax Court. 

11 ‘‘(9) COMPETITIVE STATUS.—Notwithstanding 

12 any other provision of law, any employee of the Tax 

13 Court who has completed at least 1 year of continuous 

14 service under a non-temporary appointment with the 

15 Tax Court acquires a competitive status for appoint16 ment to any position in the competitive service for 

17 which the employee possesses the required qualifica18 tions. 

19 ‘‘(10) MERIT SYSTEM PRINCIPLES; PROHIBITED

20 PERSONNEL PRACTICES; AND PREFERENCE ELIGI21 BLES.—Any personnel management system of the Tax 

22 Court shall— 

23 ‘‘(A) include the principles set forth in sec24 tion 2301(b) of title 5, United States Code; 
66 

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1 ‘‘(B) prohibit personnel practices prohibited 

2 under section 2302(b) of title 5, United States 

3 Code; and 

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

5 would be a preference eligible in the executive 

6 branch, the Tax Court will provide preference for 

7 that individual in a manner and to an extent 

8 consistent with preference accorded to preference 

9 eligibles in the executive branch.’’. 

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

11 section shall take effect on the date the United States Tax 

12 Court adopts a personnel management system after the date 

13 of the enactment of this Act. 

14 SEC. 106. EXPANDED USE OF TAX COURT PRACTICE FEE 

15 FOR PRO SE TAXPAYERS. 

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

17 fees) is amended by inserting before the period at the end 

18 ‘‘and to provide services to pro se taxpayers’’. 

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

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

21 Act. 
67 

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1 TITLE II—TAX COURT PENSION 

2 AND COMPENSATION 

3 SEC. 201. ANNUITIES FOR SURVIVORS OF TAX COURT 

4 JUDGES WHO ARE ASSASSINATED. 

5 (a) ELIGIBILITY IN CASE OF DEATH BY ASSASSINA6 TION.—Subsection (h) of section 7448 (relating to annuities 

7 to surviving spouses and dependent children of judges) is 

8 amended to read as follows: 

9 ‘‘(h) ENTITLEMENT TO ANNUITY.— 

10 ‘‘(1) IN GENERAL.— 

11 ‘‘(A) ANNUITY TO SURVIVING SPOUSE.—If a 

12 judge described in paragraph (2) is survived by 

13 a surviving spouse but not by a dependent child, 

14 there shall be paid to such surviving spouse an 

15 annuity beginning with the day of the death of 

16 the judge or following the surviving spouse’s at17 tainment of the age of 50 years, whichever is the 

18 later, in an amount computed as provided in 

19 subsection (m). 

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

21 is survived by a surviving spouse and a depend22 ent child or children, there shall be paid to such 

23 surviving spouse an immediate annuity in an 

24 amount computed as provided in subsection (m), 

25 and there shall also be paid to or on behalf of 
68 

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1 each such child an immediate annuity equal to 

2 the lesser of— 

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

4 salary of such judge (determined in accord5 ance with subsection (m)), or 

6 ‘‘(ii) 20 percent of such average annual 

7 salary, divided by the number of such chil8 dren. 

9 ‘‘(C) ANNUITY TO SURVIVING DEPENDENT

10 CHILDREN.—If such a judge leaves no surviving 

11 spouse but leaves a surviving dependent child or 

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

13 each such child an immediate annuity equal to 

14 the lesser of— 

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

16 salary of such judge (determined in accord17 ance with subsection (m)), or 

18 ‘‘(ii) 40 percent of such average annual 

19 salary, divided by the number of such chil20 dren. 

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

22 to any judge electing under subsection (b)— 

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

24 rendered at least 5 years of civilian service com25 puted as prescribed in subsection (n), for the last 
69 

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1 5 years of which the salary deductions provided 

2 for by subsection (c)(1) or the deposits required 

3 by subsection (d) have actually been made or the 

4 salary deductions required by the civil service re5 tirement laws have actually been made, or 

6 ‘‘(B) who dies by assassination after having 

7 rendered less than 5 years of civilian service 

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

9 the period of such service, the salary deductions 

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

11 required by subsection (d) have actually been 

12 made. 

13 ‘‘(3) TERMINATION OF ANNUITY.— 

14 ‘‘(A) IN THE CASE OF A SURVIVING

15 SPOUSE.—The annuity payable to a surviving 

16 spouse under this subsection shall be terminable 

17 upon such surviving spouse’s death or such sur18 viving spouse’s remarriage before attaining age 

19 55. 

20 ‘‘(B) IN THE CASE OF A CHILD.—The annu21 ity payable to a child under this subsection shall 

22 be terminable upon (i) the child attaining the 

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

24 the child’s death, whichever first occurs, except 

25 that if such child is incapable of self-support by 
70 

•S 661 RS 

1 reason of mental or physical disability the 

2 child’s annuity shall be terminable only upon 

3 death, marriage, or recovery from such dis4 ability. 

5 ‘‘(C) IN THE CASE OF A DEPENDENT CHILD

6 AFTER DEATH OF SURVIVING SPOUSE.—In case 

7 of the death of a surviving spouse of a judge 

8 leaving a dependent child or children of the 

9 judge surviving such spouse, the annuity of such 

10 child or children shall be recomputed and paid 

11 as provided in paragraph (1)(C). 

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

13 which the annuity of a dependent child is termi14 nated under this subsection, the annuities of any 

15 remaining dependent child or children, based 

16 upon the service of the same judge, shall be re17 computed and paid as though the child whose 

18 annuity was so terminated had not survived 

19 such judge. 

20 ‘‘(4) SPECIAL RULE FOR ASSASSINATED

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

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

23 deducted from the annuities otherwise payable under 

24 this section an amount equal to— 
71 

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1 ‘‘(A) the amount of salary deductions pro2 vided for by subsection (c)(1) that would have 

3 been made if such deductions had been made for 

4 5 years of civilian service computed as pre5 scribed in subsection (n) before the judge’s death, 

6 reduced by 

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

8 that were actually made before the date of the 

9 judge’s death.’’. 

10 (b) DEFINITION OF ASSASSINATION.—Section 7448(a) 

11 (relating to definitions) is amended by adding at the end 

12 the following new paragraph: 

13 ‘‘(8) The terms ‘assassinated’ and ‘assassination’ 

14 mean the killing of a judge that is motivated by the 

15 performance by that judge of his or her official du16 ties.’’. 

17 (c) DETERMINATION OF ASSASSINATION.—Subsection 

18 (i) of section 7448 is amended— 

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

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

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

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

24 (3) by adding at the end the following new para25 graph: 
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1 ‘‘(2) ASSASSINATION.—The chief judge shall de2 termine whether the killing of a judge was an assas3 sination, subject to review only by the Tax Court. The 

4 head of any Federal agency that investigates the kill5 ing of a judge shall provide information to the chief 

6 judge that would assist the chief judge in making such 

7 a determination.’’. 

8 (d) COMPUTATION OF ANNUITIES.—Subsection (m) of 

9 section 7448 is amended— 

10 (1) by striking the subsection heading and in11 serting the following: 

12 ‘‘(m) COMPUTATION OF ANNUITIES.— 

13 ‘‘(1) IN GENERAL.—’’, 

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

15 (3) by adding at the end the following new para16 graph: 

17 ‘‘(2) ASSASSINATED JUDGES.—In the case of a 

18 judge who is assassinated and who has served less 

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

20 such judge shall be based upon the average annual 

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

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

23 adding at the end the following: 

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

25 is assassinated, an annuity shall be paid under this section 
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1 notwithstanding a survivor’s eligibility for or receipt of 

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

3 except that the annuity for which a surviving spouse is eli4 gible under this section shall be reduced to the extent that 

5 the total benefits paid under this section and chapter 81 

6 of that title for any year would exceed the current salary 

7 for that year of the office of the judge.’’. 

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

9 JUDICIAL SURVIVOR ANNUITIES. 

10 (a) IN GENERAL.—Subsection (s) of section 7448 (re11 lating to annuities to surviving spouses and dependent chil12 dren of judges) is amended to read as follows: 

13 ‘‘(s) INCREASES IN SURVIVOR ANNUITIES.—Each time 

14 that an increase is made under section 8340(b) of title 5, 

15 United States Code, in annuities payable under subchapter 

16 III of chapter 83 of that title, each annuity payable from 

17 the survivors annuity fund under this section shall be in18 creased at the same time by the same percentage by which 

19 annuities are increased under such section 8340(b).’’. 

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

21 section shall apply with respect to increases made under 

22 section 8340(b) of title 5, United States Code, in annuities 

23 payable under subchapter III of chapter 83 of that title, 

24 taking effect after the date of the enactment of this Act. 
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1 SEC. 203. LIFE INSURANCE COVERAGE FOR TAX COURT 

2 JUDGES. 

3 (a) IN GENERAL.—Section 7447 (relating to retire4 ment of judges) is amended by adding at the end the fol5 lowing new subsection: 

6 ‘‘(j) LIFE INSURANCE COVERAGE.—For purposes 

7 of chapter 87 of title 5, United States Code (relating 

8 to life insurance), any individual who is serving as 

9 a judge of the Tax Court or who is retired under this 

10 section is deemed to be an employee who is continuing 

11 in active employment.’’. 

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

13 section shall apply to any individual serving as a judge 

14 of the United States Tax Court and to any retired judge 

15 of the United States Tax Court on or after the date of the 

16 enactment of this Act. 

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

18 COURT JUDGES AGE 65 OR OVER. 

19 Section 7472 (relating to expenditures) is amended by 

20 inserting after the first sentence the following new sentence: 

21 ‘‘Notwithstanding any other provision of law, the Tax 

22 Court is authorized to pay on behalf of its judges, age 65 

23 or over, any increase in the cost of Federal Employees’ 

24 Group Life Insurance imposed after April 24, 1999, includ25 ing any expenses generated by such payments, as authorized 

26 by the chief judge in a manner consistent with such pay-
75 

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1 ments authorized by the Judicial Conference of the United 

2 States pursuant to section 604(a)(5) of title 28, United 

3 States Code.’’. 

4 SEC. 205. MODIFICATION OF TIMING OF LUMP-SUM PAY5 MENT OF JUDGES’ ACCRUED ANNUAL LEAVE. 

6 (a) IN GENERAL.—Section 7443 (relating to member7 ship of the Tax Court) is amended by adding at the end 

8 the following new subsection: 

9 ‘‘(h) LUMP-SUM PAYMENT OF JUDGES’ ACCRUED AN10 NUAL LEAVE.—Notwithstanding the provisions of sections 

11 5551 and 6301 of title 5, United States Code, when an indi12 vidual subject to the leave system provided in chapter 63 

13 of that title is appointed by the President to be a judge 

14 of the Tax Court, the individual shall be entitled to receive, 

15 upon appointment to the Tax Court, a lump-sum payment 

16 from the Tax Court of the accumulated and accrued current 

17 annual leave standing to the individual’s credit as certified 

18 by the agency from which the individual resigned.’’. 

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

20 section shall apply to any judge of the United States Tax 

21 Court who has an outstanding leave balance on the date 

22 of the enactment of this Act and to any individual ap23 pointed by the President to serve as a judge of the United 

24 States Tax Court after such date. 
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1 SEC. 206. PARTICIPATION OF TAX COURT JUDGES IN THE 

2 THRIFT SAVINGS PLAN. 

3 (a) IN GENERAL.—Section 7447 (relating to retire4 ment of judges), as amended by this Act, is amended by 

5 adding at the end the following new subsection: 

6 ‘‘(k) THRIFT SAVINGS PLAN.— 

7 ‘‘(1) ELECTION TO CONTRIBUTE.— 

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

9 Court may elect to contribute to the Thrift Sav10 ings Fund established by section 8437 of title 5, 

11 United States Code. 

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

13 may be made under this paragraph as provided 

14 under section 8432(b) of title 5, United States 

15 Code, for individuals subject to chapter 84 of 

16 such title. 

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

18 Except as otherwise provided in this subsection, the 

19 provisions of subchapters III and VII of chapter 84 

20 of title 5, United States Code, shall apply with re21 spect to a judge who makes an election under para22 graph (1). 

23 ‘‘(3) SPECIAL RULES.— 

24 ‘‘(A) AMOUNT CONTRIBUTED.—The amount 

25 contributed by a judge to the Thrift Savings 

26 Fund in any pay period shall not exceed the 
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1 maximum percentage of such judge’s basic pay 

2 for such period as allowable under section 8440f 

3 of title 5, United States Code. Basic pay does not 

4 include any retired pay paid pursuant to this 

5 section. 

6 ‘‘(B) CONTRIBUTIONS FOR BENEFIT OF

7 JUDGE.—No contributions may be made for the 

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

9 5, United States Code. 

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

11 TITLE 5 WHETHER OR NOT JUDGE RETIRES.— 

12 Section 8433(b) of title 5, United States Code, 

13 applies with respect to a judge who makes an 

14 election under paragraph (1) and who either— 

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

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

17 Tax Court but does not retire under sub18 section (b). 

19 Retirement under subsection (b) is a separation 

20 from service for purposes of subchapters III and 

21 VII of chapter 84 of that title. 

22 ‘‘(D) APPLICABILITY OF SECTION 8351(b)(5) 

23 OF TITLE 5.—The provisions of section 

24 8351(b)(5) of title 5, United States Code, shall 
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1 apply with respect to a judge who makes an elec2 tion under paragraph (1). 

3 ‘‘(E) EXCEPTION.—Notwithstanding sub4 paragraph (C), if any judge retires under this 

5 section, or resigns without having met the age 

6 and service requirements set forth under sub7 section (b)(2), and such judge’s nonforfeitable ac8 count balance is less than an amount that the 

9 Executive Director of the Office of Personnel 

10 Management prescribes by regulation, the Execu11 tive Director shall pay the nonforfeitable account 

12 balance to the participant in a single payment.’’. 

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

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

15 Act. 

16 SEC. 207. EXEMPTION OF TEACHING COMPENSATION OF RE17 TIRED JUDGES FROM LIMITATION ON OUT18 SIDE EARNED INCOME. 

19 (a) IN GENERAL.—Section 7447 (relating to retire20 ment of judges), as amended by this Act, is amended by 

21 adding at the end the following new subsection: 

22 ‘‘(l) TEACHING COMPENSATION OF RETIRED

23 JUDGES.—For purposes of the limitation under section 

24 501(a) of the Ethics in Government Act of 1978 (5 U.S.C. 

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

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

3 who has retired under subsection (b) for teaching performed 

4 during any calendar year for which such a judge has met 

5 the requirements of subsection (c), as certified by the chief 

6 judge of the Tax Court.’’. 

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

8 section shall apply to any individual serving as a retired 

9 judge of the United States Tax Court on or after the date 

10 of the enactment of this Act. 

11 SEC. 208. GENERAL PROVISIONS RELATING TO MAG12 ISTRATE JUDGES OF THE TAX COURT. 

13 (a) TITLE OF SPECIAL TRIAL JUDGE CHANGED TO

14 MAGISTRATE JUDGE OF THE TAX COURT.—The heading of 

15 section 7443A is amended to read as follows: 

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

17 (b) APPOINTMENT, TENURE, AND REMOVAL.—Sub18 section (a) of section 7443A is amended to read as follows: 

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

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

21 time to time, appoint and reappoint magistrate 

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

23 magistrate judges of the Tax Court shall proceed 

24 under such rules as may be promulgated by the Tax 

25 Court. 
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1 ‘‘(2) REMOVAL.—Removal of a magistrate judge 

2 of the Tax Court during the term for which he or she 

3 is appointed shall be only for incompetency, mis4 conduct, neglect of duty, or physical or mental dis5 ability, but the office of a magistrate judge of the Tax 

6 Court shall be terminated if the judges of the Tax 

7 Court determine that the services performed by the 

8 magistrate judge of the Tax Court are no longer need9 ed. Removal shall not occur unless a majority of all 

10 the judges of the Tax Court concur in the order of re11 moval. Before any order of removal shall be entered, 

12 a full specification of the charges shall be furnished 

13 to the magistrate judge of the Tax Court, and he or 

14 she shall be accorded by the judges of the Tax Court 

15 an opportunity to be heard on the charges.’’. 

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

17 amended by striking ‘‘90’’ and inserting ‘‘92’’. 

18 (d) EXEMPTION FROM FEDERAL LEAVE PROVI19 SIONS.—Section 7443A is amended by adding at the end 

20 the following new subsection: 

21 ‘‘(f) EXEMPTION FROM FEDERAL LEAVE PROVI22 SIONS.— 

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

24 Tax Court appointed under this section shall be ex-
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1 empt from the provisions of subchapter I of chapter 

2 63 of title 5, United States Code. 

3 ‘‘(2) TREATMENT OF UNUSED LEAVE.— 

4 ‘‘(A) AFTER SERVICE AS MAGISTRATE

5 JUDGE.—If an individual who is exempted 

6 under paragraph (1) from the subchapter re7 ferred to in such paragraph was previously sub8 ject to such subchapter and, without a break in 

9 service, again becomes subject to such subchapter 

10 on completion of the individual’s service as a 

11 magistrate judge, the unused annual leave and 

12 sick leave standing to the individual’s credit when 

13 such individual was exempted from this sub14 chapter is deemed to have remained to the indi15 vidual’s credit. 

16 ‘‘(B) COMPUTATION OF ANNUITY.—In com17 puting an annuity under section 8339 of title 5, 

18 United States Code, the total service of an indi19 vidual specified in subparagraph (A) who retires 

20 on an immediate annuity or dies leaving a sur21 vivor or survivors entitled to an annuity in22 cludes, without regard to the limitations imposed 

23 by subsection (f) of such section 8339, the days 

24 of unused sick leave standing to the individual’s 

25 credit when such individual was exempted from 
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1 subchapter I of chapter 63 of title 5, United 

2 States Code, except that these days will not be 

3 counted in determining average pay or annuity 

4 eligibility. 

5 ‘‘(C) LUMP SUM PAYMENT.—Any accumu6 lated and current accrued annual leave or vaca7 tion balances credited to a magistrate judge as of 

8 the date of the enactment of this subsection shall 

9 be paid in a lump sum at the time of separation 

10 from service pursuant to the provisions and re11 strictions set forth in section 5551 of title 5, 

12 United States Code, and related provisions re13 ferred to in such section.’’. 

14 (e) CONFORMING AMENDMENTS.— 

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

16 7443A is amended by striking ‘‘SPECIAL TRIAL

17 JUDGES’’ and inserting ‘‘MAGISTRATE JUDGES OF

18 THE TAX COURT’’. 

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

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

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

22 (3) Subsections (c) and (d) of section 7443A are 

23 amended by striking ‘‘special trial judge’’ and insert24 ing ‘‘magistrate judge of the Tax Court’’ each place 

25 it appears. 
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1 (4) Section 7443A(e) is amended by striking 

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

3 judges of the Tax Court’’. 

4 (5) Section 7456(a) is amended by striking ‘‘spe5 cial trial judge’’ each place it appears and inserting 

6 ‘‘magistrate judge’’. 

7 (6) Subsection (c) of section 7471 is amended— 

8 (A) by striking the subsection heading and 

9 inserting ‘‘MAGISTRATE JUDGES OF THE TAX

10 COURT.—’’, and 

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

12 inserting ‘‘magistrate judges’’. 

13 SEC. 209. ANNUITIES TO SURVIVING SPOUSES AND DE14 PENDENT CHILDREN OF MAGISTRATE 

15 JUDGES OF THE TAX COURT. 

16 (a) DEFINITIONS.—Section 7448(a) (relating to defini17 tions), as amended by this Act, is amended by redesignating 

18 paragraphs (5), (6), (7), and (8) as paragraphs (7), (8), 

19 (9), and (10), respectively, and by inserting after para20 graph (4) the following new paragraphs: 

21 ‘‘(5) The term ‘magistrate judge’ means a judi22 cial officer appointed pursuant to section 7443A, in23 cluding any individual receiving an annuity under 

24 section 7443B, or chapters 83 or 84, as the case may 
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1 be, of title 5, United States Code, whether or not per2 forming judicial duties under section 7443C. 

3 ‘‘(6) The term ‘magistrate judge’s salary’ means 

4 the salary of a magistrate judge received under sec5 tion 7443A(d), any amount received as an annuity 

6 under section 7443B, or chapters 83 or 84, as the case 

7 may be, of title 5, United States Code, and compensa8 tion received under section 7443C.’’. 

9 (b) ELECTION.—Subsection (b) of section 7448 (relat10 ing to annuities to surviving spouses and dependent chil11 dren of judges) is amended— 

12 (1) by striking the subsection heading and in13 serting the following: 

14 ‘‘(b) ELECTION.— 

15 ‘‘(1) JUDGES.—’’, 

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

17 (3) by adding at the end the following new para18 graph: 

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

20 judge may by written election filed with the chief 

21 judge bring himself or herself within the purview of 

22 this section. Such election shall be filed not later than 

23 the later of 6 months after— 

24 ‘‘(A) 6 months after the date of the enact25 ment of this paragraph, 
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1 ‘‘(B) the date the judge takes office, or 

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

3 (c) CONFORMING AMENDMENTS.— 

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

5 inserting ‘‘AND MAGISTRATE JUDGES’’ after 

6 ‘‘JUDGES’’. 

7 (2) The item relating to section 7448 in the table 

8 of sections for part I of subchapter C of chapter 76 

9 is amended by inserting ‘‘and magistrate judges’’ 

10 after ‘‘judges’’. 

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

12 (n), and (u) of section 7448, as amended by this Act, 

13 are each amended— 

14 (A) by inserting ‘‘or magistrate judge’’ after 

15 ‘‘judge’’ each place it appears other than in the 

16 phrase ‘‘chief judge’’, and 

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

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

19 (4) Section 7448(c) is amended— 

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

21 Court judges’’ and inserting ‘‘Tax Court judicial 

22 officers’’, 

23 (B) in paragraph (2)— 

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

25 ‘‘and section 7443A(d)’’ after ‘‘(a)(4)’’, and 
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1 (ii) in subparagraph (B), by striking 

2 ‘‘subsection (a)(4)’’ and inserting ‘‘sub3 sections (a)(4) and (a)(6)’’. 

4 (5) Section 7448(g) is amended by inserting ‘‘or 

5 section 7443B’’ after ‘‘section 7447’’ each place it ap6 pears, and by inserting ‘‘or an annuity’’ after ‘‘re7 tired pay’’. 

8 (6) Section 7448(j)(1) is amended— 

9 (A) in subparagraph (A), by striking ‘‘serv10 ice or retired’’ and inserting ‘‘service, retired’’, 

11 and by inserting ‘‘, or receiving any annuity 

12 under section 7443B or chapters 83 or 84 of title 

13 5, United States Code,’’ after ‘‘section 7447’’, 

14 and 

15 (B) in the last sentence, by striking ‘‘sub16 sections (a)(6) and (7)’’ and inserting ‘‘para17 graphs (8) and (9) of subsection (a)’’. 

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

19 is amended— 

20 (A) by inserting ‘‘or any annuity under sec21 tion 7443B or chapters 83 or 84 of title 5, 

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

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

24 ‘‘7447(f)(4)’’. 
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1 (8) Section 7448(n) is amended by inserting ‘‘his 

2 years of service pursuant to any appointment under 

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

4 (9) Section 3121(b)(5)(E) is amended by insert5 ing ‘‘or magistrate judge’’ before ‘‘of the United States 

6 Tax Court’’. 

7 (10) Section 210(a)(5)(E) of the Social Security 

8 Act is amended by inserting ‘‘or magistrate judge’’ be9 fore ‘‘of the United States Tax Court’’. 

10 SEC. 210. RETIREMENT AND ANNUITY PROGRAM. 

11 (a) RETIREMENT AND ANNUITY PROGRAM.—Part I of 

12 subchapter C of chapter 76 is amended by inserting after 

13 section 7443A the following new section: 

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

15 THE TAX COURT. 

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

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

18 applies and who retires from office after attaining the age 

19 of 65 years and serving at least 14 years, whether continu20 ously or otherwise, as such magistrate judge shall, subject 

21 to subsection (f), be entitled to receive, during the remainder 

22 of the magistrate judge’s lifetime, an annuity equal to the 

23 salary being received at the time the magistrate judge leaves 

24 office. 
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1 ‘‘(b) RETIREMENT UPON FAILURE OF REAPPOINT2 MENT.—A magistrate judge of the Tax Court to whom this 

3 section applies who is not reappointed following the expira4 tion of the term of office of such magistrate judge, and who 

5 retires upon the completion of the term shall, subject to sub6 section (f), be entitled to receive, upon attaining the age 

7 of 65 years and during the remainder of such magistrate 

8 judge’s lifetime, an annuity equal to that portion of the sal9 ary being received at the time the magistrate judge leaves 

10 office which the aggregate number of years of service, not 

11 to exceed 14, bears to 14, if— 

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

13 full term as a magistrate judge, and 

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

15 which the term of office of such magistrate judge ex16 pires, and not later than 6 months before such date, 

17 such magistrate judge notified the chief judge of the 

18 Tax Court in writing that such magistrate judge was 

19 willing to accept reappointment to the position in 

20 which such magistrate judge was serving. 

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

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

23 who retires after serving at least 8 years, whether continu24 ously or otherwise, as such a magistrate judge shall, subject 

25 to subsection (f), be entitled to receive, upon attaining the 
89 

•S 661 RS 

1 age of 65 years and during the remainder of the magistrate 

2 judge’s lifetime, an annuity equal to that portion of the sal3 ary being received at the time the magistrate judge leaves 

4 office which the aggregate number of years of service, not 

5 to exceed 14, bears to 14. Such annuity shall be reduced 

by 1 6 ⁄6 of 1 percent for each full month such magistrate judge 

7 was under the age of 65 at the time the magistrate judge 

8 left office, except that such reduction shall not exceed 20 

9 percent. 

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

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

12 has served at least 5 years, whether continuously or other13 wise, as such a magistrate judge, and who retires or is re14 moved from office upon the sole ground of mental or phys15 ical disability shall, subject to subsection (f), be entitled to 

16 receive, during the remainder of the magistrate judge’s life17 time, an annuity equal to 40 percent of the salary being 

18 received at the time of retirement or removal or, in the case 

19 of a magistrate judge who has served for at least 10 years, 

20 an amount equal to that proportion of the salary being re21 ceived at the time of retirement or removal which the aggre22 gate number of years of service, not to exceed 14, bears to 

23 14. 

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

25 judge of the Tax Court who is entitled to an annuity under 
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•S 661 RS 

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

2 in such annuity, calculated and payable in the same man3 ner as adjustments under section 8340(b) of title 5, United 

4 States Code, except that any such annuity, as increased 

5 under this subsection, may not exceed the salary then pay6 able for the position from which the magistrate judge retired 

7 or was removed. 

8 ‘‘(f) ELECTION; ANNUITY IN LIEU OF OTHER ANNU9 ITIES.— 

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

11 Tax Court shall be entitled to an annuity under this 

12 section if the magistrate judge elects an annuity 

13 under this section by notifying the chief judge of the 

14 Tax Court not later than the later of— 

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

16 the Tax Court begins judicial service, or 

17 ‘‘(B) 5 years after the date of the enactment 

18 of this subsection. 

19 Such notice shall be given in accordance with proce20 dures prescribed by the Tax Court. 

21 ‘‘(2) ANNUITY IN LIEU OF OTHER ANNUITY.—A 

22 magistrate judge who elects to receive an annuity 

23 under this section shall not be entitled to receive— 

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

25 judge would otherwise have been entitled under 
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1 subchapter III of chapter 83, or under chapter 

2 84 (except for subchapters III and VII), of title 

3 5, United States Code, for service performed as 

4 a magistrate or otherwise, 

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

6 or retirement under section 371 or 372 of title 

7 28, United States Code, 

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

9 ‘‘(D) retired pay under section 7296 of title 

10 38, United States Code. 

11 ‘‘(3) COORDINATION WITH TITLE 5.—A mag12 istrate judge of the Tax Court who elects to receive an 

13 annuity under this section— 

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

15 contributions otherwise required by section 

16 8334(a) of title 5, United States Code, 

17 ‘‘(B) shall be excluded from the operation of 

18 chapter 84 (other than subchapters III and VII) 

19 of such title 5, and 

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

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

22 case may be. 

23 ‘‘(g) CALCULATION OF SERVICE.—For purposes of cal24 culating an annuity under this section— 
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1 ‘‘(1) service as a magistrate judge of the Tax 

2 Court to whom this section applies may be credited, 

3 and 

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

1 5 ⁄12 of a year, and the fractional part of any month 

6 shall not be credited. 

7 ‘‘(h) COVERED POSITIONS AND SERVICE.—This section 

8 applies to any magistrate judge of the Tax Court or special 

9 trial judge of the Tax Court appointed under this sub10 chapter, but only with respect to service as such a mag11 istrate judge or special trial judge after a date not earlier 

than 91 12 ⁄2 years before the date of the enactment of this sub13 section. 

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

15 ‘‘(1) IN GENERAL.—Payments under this section 

16 which would otherwise be made to a magistrate judge 

17 of the Tax Court based upon his or her service shall 

18 be paid (in whole or in part) by the chief judge of the 

19 Tax Court to another person if and to the extent ex20 pressly provided for in the terms of any court decree 

21 of divorce, annulment, or legal separation, or the 

22 terms of any court order or court-approved property 

23 settlement agreement incident to any court decree of 

24 divorce, annulment, or legal separation. Any payment 
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1 under this paragraph to a person bars recovery by 

2 any other person. 

3 ‘‘(2) REQUIREMENTS FOR PAYMENT.—Paragraph 

4 (1) shall apply only to payments made by the chief 

5 judge of the Tax Court after the date of receipt by the 

6 chief judge of written notice of such decree, order, or 

7 agreement, and such additional information as the 

8 chief judge may prescribe. 

9 ‘‘(3) COURT DEFINED.—For purposes of this sub10 section, the term ‘court’ means any court of any 

11 State, the District of Columbia, the Commonwealth of 

12 Puerto Rico, Guam, the Northern Mariana Islands, or 

13 the Virgin Islands, and any Indian tribal court or 

14 courts of Indian offense. 

15 ‘‘(j) DEDUCTIONS, CONTRIBUTIONS, AND DEPOSITS.— 

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

17 pay period after the chief judge of the Tax Court re18 ceives a notice under subsection (f) that a magistrate 

19 judge of the Tax Court has elected an annuity under 

20 this section, the chief judge shall deduct and withhold 

21 1 percent of the salary of such magistrate judge. 

22 Amounts shall be so deducted and withheld in a man23 ner determined by the chief judge. Amounts deducted 

24 and withheld under this subsection shall be deposited 

25 in the Treasury of the United States to the credit of 
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1 the Tax Court Judicial Officers’ Retirement Fund. 

2 Deductions under this subsection from the salary of a 

3 magistrate judge shall terminate upon the retirement 

4 of the magistrate judge or upon completion of 14 

5 years of service for which contributions under this 

6 section have been made, whether continuously or oth7 erwise, as calculated under subsection (g), whichever 

8 occurs first. 

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

10 CLAIMS.—Each magistrate judge of the Tax Court 

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

12 deemed to consent and agree to the deductions from 

13 salary which are made under paragraph (1). Pay14 ment of such salary less such deductions (and any de15 ductions made under section 7448) is a full and com16 plete discharge and acquittance of all claims and de17 mands for all services rendered by such magistrate 

18 judge during the period covered by such payment, ex19 cept the right to those benefits to which the magistrate 

20 judge is entitled under this section (and section 7448). 

21 ‘‘(k) DEPOSITS FOR PRIOR SERVICE.—Each mag22 istrate judge of the Tax Court who makes an election under 

23 subsection (f) may deposit, for service performed before such 

24 election for which contributions may be made under this 

25 section, an amount equal to 1 percent of the salary received 
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1 for that service. Credit for any period covered by that serv2 ice may not be allowed for purposes of an annuity under 

3 this section until a deposit under this subsection has been 

4 made for that period. 

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

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

7 the amounts deposited under subsection (k), shall be credited 

8 to individual accounts in the name of each magistrate judge 

9 of the Tax Court from whom such amounts are received, 

10 for credit to the Tax Court Judicial Officers’ Retirement 

11 Fund. 

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

13 ‘‘(1) 1-YEAR FORFEITURE FOR FAILURE TO PER14 FORM JUDICIAL DUTIES.—Subject to paragraph (3), 

15 any magistrate judge of the Tax Court who retires 

16 under this section and who fails to perform judicial 

17 duties required of such individual by section 7443C 

18 shall forfeit all rights to an annuity under this sec19 tion for a 1-year period which begins on the 1st day 

20 on which such individual fails to perform such duties. 

21 ‘‘(2) PERMANENT FORFEITURE OF RETIRED PAY

22 WHERE CERTAIN NON-GOVERNMENT SERVICES PER23 FORMED.—Subject to paragraph (3), any magistrate 

24 judge of the Tax Court who retires under this section 

25 and who thereafter performs (or supervises or directs 
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1 the performance of) legal or accounting services in the 

2 field of Federal taxation for the individual’s client, 

3 the individual’s employer, or any of such employer’s 

4 clients, shall forfeit all rights to an annuity under this 

5 section for all periods beginning on or after the first 

6 day on which the individual performs (or supervises 

7 or directs the performance of) such services. The pre8 ceding sentence shall not apply to any civil office or 

9 employment under the Government of the United 

10 States. 

11 ‘‘(3) FORFEITURES NOT TO APPLY WHERE INDI12 VIDUAL ELECTS TO FREEZE AMOUNT OF ANNUITY.— 

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

14 the Tax Court makes an election under this 

15 paragraph— 

16 ‘‘(i) paragraphs (1) and (2) (and sec17 tion 7443C) shall not apply to such mag18 istrate judge beginning on the date such 

19 election takes effect, and 

20 ‘‘(ii) the annuity payable under this 

21 section to such magistrate judge, for periods 

22 beginning on or after the date such election 

23 takes effect, shall be equal to the annuity to 

24 which such magistrate judge is entitled on 

25 the day before such effective date. 
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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 ir9 revocable. 

10 ‘‘(C) EFFECTIVE DATE OF ELECTION.—Any 

11 election under subparagraph (A) shall take effect 

12 on the first day of the first month following the 

13 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 func19 tions as a magistrate judge of the Tax Court under 

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

21 under this section for the period for which such com22 pensation is received. For purposes of this paragraph, 

23 the term ‘compensation’ includes retired pay or sal24 ary received in retired status. 

25 ‘‘(n) LUMP-SUM PAYMENTS.— 
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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 of 

10 a lump-sum credit, 

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

12 judge of the Tax Court at the time of filing 

13 of the application, and 

14 ‘‘(iv) will not become eligible to receive 

15 an annuity under this section within 31 

16 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.—Lump-sum 

24 benefits authorized by subparagraphs (C), (D), 

25 and (E) of this paragraph shall be paid to the 
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1 person or persons surviving the magistrate judge 

2 of the Tax Court and alive on the date title to 

3 the payment arises, in the order of precedence set 

4 forth in subsection (o) of section 376 of title 28, 

5 United States Code, and in accordance with the 

6 last 2 sentences of paragraph (1) of that sub7 section. For purposes of the preceding sentence, 

8 the term ‘judicial official’ as used in subsection 

9 (o) of such section 376 shall be deemed to mean 

10 ‘magistrate judge of the Tax Court’ and the 

11 terms ‘Administrative Office of the United States 

12 Courts’ and ‘Director of the Administrative Of13 fice of the United States Courts’ shall be deemed 

14 to mean ‘chief judge of the Tax Court’. 

15 ‘‘(C) PAYMENT UPON DEATH OF JUDGE BE16 FORE RECEIPT OF ANNUITY.—If a magistrate 

17 judge of the Tax Court dies before receiving an 

18 annuity under this section, the lump-sum credit 

19 shall be paid. 

20 ‘‘(D) PAYMENT OF ANNUITY REMAINDER.— 

21 If all annuity rights under this section based on 

22 the service of a deceased magistrate judge of the 

23 Tax Court terminate before the total annuity 

24 paid equals the lump-sum credit, the difference 

25 shall be paid. 
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1 ‘‘(E) PAYMENT UPON DEATH OF JUDGE

2 DURING RECEIPT OF ANNUITY.—If a magistrate 

3 judge of the Tax Court who is receiving an an4 nuity under this section dies, any accrued annu5 ity benefits remaining unpaid shall be paid. 

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

7 accrued annuity benefits remaining unpaid on 

8 the termination, except by death, of the annuity 

9 of a magistrate judge of the Tax Court shall be 

10 paid to that individual. 

11 ‘‘(G) PAYMENT UPON ACCEPTING OTHER

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

13 magistrate judge of the Tax Court who forfeits 

14 rights to an annuity under subsection (m)(4) be15 fore the total annuity paid equals the lump-sum 

16 credit shall be entitled to be paid the difference 

17 if the magistrate judge of the Tax Court files an 

18 application with the chief judge of the Tax Court 

19 for payment of that difference. A payment under 

20 this subparagraph voids all rights to an annuity 

21 on which the payment is based. 

22 ‘‘(2) SPOUSES AND FORMER SPOUSES.— 

23 ‘‘(A) IN GENERAL.—Payment of the lump24 sum credit under paragraph (1)(A) or a pay25 ment under paragraph (1)(G)— 
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1 ‘‘(i) may be made only if any current 

2 spouse and any former spouse of the mag3 istrate judge of the Tax Court are notified 

4 of the magistrate judge’s application, and 

5 ‘‘(ii) shall be subject to the terms of a 

6 court decree of divorce, annulment, or legal 

7 separation, or any court or court approved 

8 property settlement agreement incident to 

9 such decree, if— 

10 ‘‘(I) the decree, order, or agree11 ment expressly relates to any portion 

12 of the lump-sum credit or other pay13 ment involved, and 

14 ‘‘(II) payment of the lump-sum 

15 credit or other payment would extin16 guish entitlement of the magistrate 

17 judge’s spouse or former spouse to any 

18 portion of an annuity under subsection 

19 (i). 

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

21 spouse or former spouse under this paragraph 

22 shall be made in accordance with such proce23 dures as the chief judge of the Tax Court shall 

24 prescribe. The chief judge may provide under 

25 such procedures that subparagraph (A)(i) may 
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1 be waived with respect to a spouse or former 

2 spouse if the magistrate judge establishes to the 

3 satisfaction of the chief judge that the where4 abouts of such spouse or former spouse cannot be 

5 determined. 

6 ‘‘(C) RESOLUTION OF 2 OR MORE OR7 DERS.—The chief judge shall prescribe proce8 dures under which this paragraph shall be ap9 plied in any case in which the chief judge re10 ceives 2 or more orders or decrees described in 

11 subparagraph (A). 

12 ‘‘(3) DEFINITION.—For purposes of this sub13 section, the term ‘lump-sum credit’ means the 

14 unrefunded amount consisting of— 

15 ‘‘(A) retirement deductions made under this 

16 section from the salary of a magistrate judge of 

17 the Tax Court, 

18 ‘‘(B) amounts deposited under subsection 

19 (k) by a magistrate judge of the Tax Court cov20 ering earlier service, and 

21 ‘‘(C) interest on the deductions and deposits 

22 which, for any calendar year, shall be equal to 

23 the overall average yield to the Tax Court Judi24 cial Officers’ Retirement Fund during the pre25 ceding fiscal year from all obligations purchased 
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1 by the Secretary during such fiscal year under 

2 subsection (o); but does not include interest— 

3 ‘‘(i) if the service covered thereby ag4 gregates 1 year or less, or 

5 ‘‘(ii) for the fractional part of a month 

6 in the total service. 

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

8 FUND.— 

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

10 the Treasury a fund which shall be known as the ‘Tax 

11 Court Judicial Officers’ Retirement Fund’. Amounts 

12 in the Fund are authorized to be appropriated for the 

13 payment of annuities, refunds, and other payments 

14 under this section. 

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

16 shall invest, in interest bearing securities of the 

17 United States, such currently available portions of the 

18 Tax Court Judicial Officers’ Retirement Fund as are 

19 not immediately required for payments from the 

20 Fund. The income derived from these investments con21 stitutes a part of the Fund. 

22 ‘‘(3) UNFUNDED LIABILITY.— 

23 ‘‘(A) IN GENERAL.—There are authorized to 

24 be appropriated to the Tax Court Judicial Offi-
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1 cers’ Retirement Fund amounts required to re2 duce to zero the unfunded liability of the Fund. 

3 ‘‘(B) UNFUNDED LIABILITY.—For purposes 

4 of subparagraph (A), the term ‘unfunded liabil5 ity’ means the estimated excess, determined on 

6 an annual basis in accordance with the provi7 sions of section 9503 of title 31, United States 

8 Code, of the present value of all benefits payable 

9 from the Tax Court Judicial Officers’ Retirement 

10 Fund over the sum of— 

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

12 be withheld under this section from the fu13 ture basic pay of magistrate judges of the 

14 Tax Court, plus 

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

16 date the unfunded liability is determined. 

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

18 ‘‘(1) ELECTION TO CONTRIBUTE.— 

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

20 the Tax Court who elects to receive an annuity 

21 under this section or under section 211 of the 

22 United States Tax Court Modernization Act may 

23 elect to contribute an amount of such individ24 ual’s basic pay to the Thrift Savings Fund estab-
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1 lished by section 8437 of title 5, United States 

2 Code. 

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

4 may be made under this paragraph as provided 

5 under section 8432(b) of title 5, United States 

6 Code, for individuals subject to chapter 84 of 

7 such title. 

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

9 Except as otherwise provided in this subsection, the 

10 provisions of subchapters III and VII of chapter 84 

11 of title 5, United States Code, shall apply with re12 spect to a magistrate judge who makes an election 

13 under paragraph (1). 

14 ‘‘(3) SPECIAL RULES.— 

15 ‘‘(A) AMOUNT CONTRIBUTED.—The amount 

16 contributed by a magistrate judge to the Thrift 

17 Savings Fund in any pay period shall not ex18 ceed the maximum percentage of such judge’s 

19 basic pay for such pay period as allowable under 

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

21 ‘‘(B) CONTRIBUTIONS FOR BENEFIT OF

22 JUDGE.—No contributions may be made for the 

23 benefit of a magistrate judge under section 

24 8432(c) of title 5, United States Code. 
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1 ‘‘(C) APPLICABILITY OF SECTION 8433(b) OF

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

3 States Code, applies with respect to a magistrate 

4 judge who makes an election under paragraph 

5 (1) and— 

6 ‘‘(i) who retires entitled to an imme7 diate annuity under this section (including 

8 a disability annuity under subsection (d) of 

9 this section) or section 211 of the United 

10 States Tax Court Modernization Act, 

11 ‘‘(ii) who retires before attaining age 

12 65 but is entitled, upon attaining age 65, to 

13 an annuity under this section or section 

14 211 of the United States Tax Court Mod15 ernization Act, or 

16 ‘‘(iii) who retires before becoming enti17 tled to an immediate annuity, or an annu18 ity upon attaining age 65, under this sec19 tion or section 211 of the United States Tax 

20 Court Modernization Act. 

21 ‘‘(D) SEPARATION FROM SERVICE.—With 

22 respect to a magistrate judge to whom this sub23 section applies, retirement under this section or 

24 section 211 of the United States Tax Court Mod25 ernization Act is a separation from service for 
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1 purposes of subchapters III and VII of chapter 

2 84 of title 5, United States Code. 

3 ‘‘(4) DEFINITIONS.—For purposes of this sub4 section, the terms ‘retirement’ and ‘retire’ include re5 moval from office under section 7443A(a)(2) on the 

6 sole ground of mental or physical disability. 

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

8 who receives a distribution from the Thrift Savings 

9 Fund and who later receives an annuity under this 

10 section, that annuity shall be offset by an amount 

11 equal to the amount which represents the Govern12 ment’s contribution to that person’s Thrift Savings 

13 Account, without regard to earnings attributable to 

14 that amount. Where such an offset would exceed 50 

15 percent of the annuity to be received in the first year, 

16 the offset may be divided equally over the first 2 years 

17 in which that person receives the annuity. 

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

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

20 retires under circumstances making such magistrate 

21 judge eligible to make an election under subsection (b) 

22 of section 8433 of title 5, United States Code, and 

23 such magistrate judge’s nonforfeitable account balance 

24 is less than an amount that the Executive Director of 

25 the Office of Personnel Management prescribes by reg-
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1 ulation, the Executive Director shall pay the non2 forfeitable account balance to the participant in a 

3 single payment.’’. 

4 (b) CONFORMING AMENDMENT.—The table of sections 

5 for part I of subchapter C of chapter 76 is amended by 

6 inserting after the item relating to section 7443A the fol7 lowing new item: 

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

8 SEC. 211. INCUMBENT MAGISTRATE JUDGES OF THE TAX 

9 COURT. 

10 (a) RETIREMENT ANNUITY UNDER TITLE 5 AND SEC11 TION 7443B OF THE INTERNAL REVENUE CODE OF 1986.— 

12 A magistrate judge of the United States Tax Court in active 

13 service on the date of the enactment of this Act shall, subject 

14 to subsection (b), be entitled, in lieu of the annuity other15 wise provided under the amendments made by this title, 

16 to— 

17 (1) an annuity under subchapter III of chapter 

18 83, or under chapter 84 (except for subchapters III 

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

20 may be, for creditable service before the date on which 

21 service would begin to be credited for purposes of 

22 paragraph (2), and 

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

24 or (c) and subsection (g) of section 7443B of the In25 ternal Revenue Code of 1986, as added by this Act, 
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1 for any service as a magistrate judge of the United 

2 States Tax Court or special trial judge of the United 

3 States Tax Court but only with respect to service as 

4 such a magistrate judge or special trial judge after a 

date not earlier than 91 5 ⁄2 years prior to the date of 

6 the enactment of this Act (as specified in the election 

7 pursuant to subsection (b)) for which deductions and 

8 deposits are made under subsections (j) and (k) of 

9 such section 7443B, as applicable, without regard to 

10 the minimum number of years of service as such a 

11 magistrate judge of the United States Tax Court, ex12 cept that— 

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

14 retired with less than 8 years of service, the an15 nuity under subsection (c) of such section 7443B 

16 shall be equal to that proportion of the salary 

17 being received at the time the magistrate judge 

18 leaves office which the years of service bears to 

19 14, subject to a reduction in accordance with sub20 section (c) of such section 7443B if the magistrate 

21 judge is under age 65 at the time he or she leaves 

22 office, and 

23 (B) the aggregate amount of the annuity 

24 initially payable on retirement under this sub25 section may not exceed the rate of pay for the 
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1 magistrate judge which is in effect on the day be2 fore the retirement becomes effective. 

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

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

5 an annuity under this section only if the magistrate judge 

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

7 United States Tax Court specifying the date on which serv8 ice would begin to be credited under section 7443B of the 

9 Internal Revenue Code of 1986, as added by this Act, in 

10 lieu of chapter 83 or chapter 84 of title 5, United States 

11 Code. Such notice shall be filed in accordance with such 

12 procedures as the chief judge of the United States Tax Court 

13 shall prescribe. 

14 (c) LUMP-SUM CREDIT UNDER TITLE 5.—A mag15 istrate judge of the United States Tax Court who makes 

16 an election under subsection (b) shall be entitled to a lump17 sum credit under section 8342 or 8424 of title 5, United 

18 States Code, as the case may be, for any service which is 

19 covered under section 7443B of the Internal Revenue Code 

20 of 1986, as added by this Act, pursuant to that election, 

21 and with respect to which any contributions were made by 

22 the magistrate judge under the applicable provisions of title 

23 5, United States Code. 

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

25 the United States Tax Court receiving an annuity under 
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1 this section who is recalled to serve under section 7443C 

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

3 Act— 

4 (1) the amount of compensation which such re5 called magistrate judge receives under such section 

6 7443C shall be calculated on the basis of the annuity 

7 received under this section, and 

8 (2) such recalled magistrate judge of the United 

9 States Tax Court may serve as a reemployed annu10 itant to the extent otherwise permitted under title 5, 

11 United States Code. 

12 Section 7443B(m)(4) of the Internal Revenue Code of 1986, 

13 as added by this Act, shall not apply with respect to service 

14 as a reemployed annuitant described in paragraph (2). 

15 SEC. 212. PROVISIONS FOR RECALL. 

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

17 76, as amended by this Act, is amended by inserting after 

18 section 7443B the following new section: 

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

20 COURT. 

21 ‘‘(a) RECALLING OF RETIRED MAGISTRATE

22 JUDGES.—Any individual who has retired pursuant to sec23 tion 7443B or the applicable provisions of title 5, United 

24 States Code, upon reaching the age and service require25 ments established therein, may at or after retirement be 
112 

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

2 such judicial duties with the Tax Court as may be requested 

3 of such individual for any period or periods specified by 

4 the chief judge; except that in the case of any such indi5 vidual— 

6 ‘‘(1) the aggregate of such periods in any 1 cal7 endar year shall not (without such individual’s con8 sent) exceed 90 calendar days, and 

9 ‘‘(2) such individual shall be relieved of per10 forming such duties during any period in which ill11 ness or disability precludes the performance of such 

12 duties. 

13 Any act, or failure to act, by an individual performing ju14 dicial duties pursuant to this subsection shall have the same 

15 force and effect as if it were the act (or failure to act) of 

16 a magistrate judge of the Tax Court. 

17 ‘‘(b) COMPENSATION.—For the year in which a period 

18 of recall occurs, the magistrate judge shall receive, in addi19 tion to the annuity provided under the provisions of section 

20 7443B or under the applicable provisions of title 5, United 

21 States Code, an amount equal to the difference between that 

22 annuity and the current salary of the office to which the 

23 magistrate judge is recalled. The annuity of the magistrate 

24 judge who completes that period of service, who is not re25 called in a subsequent year, and who retired under section 
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1 7443B, shall be equal to the salary in effect at the end of 

2 the year in which the period of recall occurred for the office 

3 from which such individual retired. 

4 ‘‘(c) RULEMAKING AUTHORITY.—The provisions of this 

5 section may be implemented under such rules as may be 

6 promulgated by the Tax Court.’’. 

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

8 for part I of subchapter C of chapter 76, as amended by 

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

10 to section 7443B the following new item: 

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

11 SEC. 213. EFFECTIVE DATE. 

12 Except as otherwise provided, the amendments made 

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

14 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 

States Tax Court, and for other purposes. provide for the modernization of the United 

APRIL 28, 2005 

Reported with an amendment