H. R. 2337—20
‘‘(f) CRIME-FRAUD EXCEPTION.—Subsection (a) shall not apply
to information conveyed to an attorney, certified public accountant,
or enrolled agent for the purpose of perpetrating a fraud or crime.’’.
(b) CLERICAL AMENDMENT.—The table of sections for subchapter
B of chapter 76, as amended by section 601(b), is amended by
striking the item relating to section 7435 and by adding at the
end the following new items:
‘‘Sec. 7435. Civil damages for unauthorized enticement of information disclosure.
‘‘Sec. 7436. Cross references.’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall apply to actions after the date of the enactment of this
Act.
SEC. 1204. ANNUAL REMINDERS TO TAXPAYERS WITH OUTSTANDING
DELINQUENT ACCOUNTS.
(a) IN GENERAL.—Chapter 77 (relating to miscellaneous provi-
sions) is amended by adding at the end the following new section:
‘‘SEC. 7524. ANNUAL NOTICE OF TAX DELINQUENCY.
‘‘Not less often than annually, the Secretary shall send a writ-
ten notice to each taxpayer who has a tax delinquent account
of the amount of the tax delinquency as of the date of the notice.’’.
(b) CLERICAL AMENDMENT.—The table of sections for chapter
77 is amended by adding at the end the following new item:
‘‘Sec. 7524. Annual notice of tax delinquency.’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall apply to calendar years after 1996.
SEC. 1205. 5-YEAR EXTENSION OF AUTHORITY FOR UNDERCOVER
OPERATIONS.
(a) IN GENERAL.—Paragraph (3) of section 7601(c) of the Anti-
Drug Abuse Act of 1988 is amended by striking all that follows
‘‘this Act’’ and inserting a period.
(b) RESTORATION OF AUTHORITY FOR 5 YEARS.—Subsection (c)
of section 7608 is amended by adding at the end the following
new paragraph:
‘‘(6) APPLICATION OF SECTION.—The provisions of this sub-
section—
‘‘(A) shall apply after November 17, 1988, and before
January 1, 1990, and
‘‘(B) shall apply after the date of the enactment of
this paragraph and before January 1, 2001.
All amounts expended pursuant to this subsection during the
period described in subparagraph (B) shall be recovered to
the extent possible, and deposited in the Treasury of the United
States as miscellaneous receipts, before January 1, 2001.’’.
(c) ENHANCED OVERSIGHT.—
(1) ADDITIONAL INFORMATION REQUIRED IN REPORTS TO CON-
GRESS.—Subparagraph (B) of section 7608(c)(4) is amended—
(A) by striking ‘‘preceding the period’’ in clause (ii),
(B) by striking ‘‘and’’ at the end of clause (ii), and
(C) by striking clause (iii) and inserting the following:
‘‘(iii) the number, by programs, of undercover
investigative operations closed in the 1-year period
for which such report is submitted, and
‘‘(iv) the following information with respect to each
undercover investigative operation pending as of the
H. R. 2337—21
end of the 1-year period for which such report is
submitted or closed during such 1-year period—
‘‘(I) the date the operation began and the date
of the certification referred to in the last sentence
of paragraph (1),
‘‘(II) the total expenditures under the oper-
ation and the amount and use of the proceeds
from the operation,
‘‘(III) a detailed description of the operation
including the potential violation being investigated
and whether the operation is being conducted
under grand jury auspices, and
‘‘(IV) the results of the operation including
the results of criminal proceedings.’’.
(2) AUDITS
REQUIRED
WITHOUT
REGARD
TO
AMOUNTS
INVOLVED.—Subparagraph (C) of section 7608(c)(5) is amended
to read as follows:
‘‘(C) UNDERCOVER
INVESTIGATIVE
OPERATION.—The
term ‘undercover investigative operation’ means any under-
cover investigative operation of the Service; except that,
for purposes of subparagraphs (A) and (C) of paragraph
(4), such term only includes an operation which is exempt
from section 3302 or 9102 of title 31, United States Code.’’.
(3) EFFECTIVE DATE.—The amendments made by this sub-
section shall take effect on the date of the enactment of this
Act.
SEC. 1206. DISCLOSURE OF FORM 8300 INFORMATION ON CASH TRANS-
ACTIONS.
(a) IN GENERAL.—Subsection (l) of section 6103 (relating to
disclosure of returns and return information for purposes other
than tax administration) is amended by adding at the end the
following new paragraph:
‘‘(15) DISCLOSURE
OF
RETURNS
FILED
UNDER
SECTION
6050I.—The Secretary may, upon written request, disclose to
officers and employees of—
‘‘(A) any Federal agency,
‘‘(B) any agency of a State or local government, or
‘‘(C) any agency of the government of a foreign country,
information contained on returns filed under section 6050I.
Any such disclosure shall be made on the same basis, and
subject to the same conditions, as apply to disclosures of
information on reports filed under section 5313 of title 31,
United States Code; except that no disclosure under this para-
graph shall be made for purposes of the administration of
any tax law.’’.
(b) CONFORMING AMENDMENTS.—
(1) Subsection (i) of section 6103 is amended by striking
paragraph (8).
(2) Subparagraph (A) of section 6103(p)(3) is amended—
(A) by striking ‘‘(7)(A)(ii), or (8)’’ and inserting ‘‘or
(7)(A)(ii)’’, and
(B) by striking ‘‘or (14)’’ and inserting ‘‘(14), or (15)’’.
(3) The material preceding subparagraph (A) of section
6103(p)(4) is amended—
(A) by striking ‘‘(5), or (8)’’ and inserting ‘‘or (5)’’,
H. R. 2337—22
(B) by striking ‘‘(i)(3)(B)(i), or (8)’’ and inserting
‘‘(i)(3)(B)(i),’’, and
(C) by striking ‘‘or (12)’’ and inserting ‘‘(12), or (15)’’.
(4) Clause (ii) of section 6103(p)(4)(F) is amended—
(A) by striking ‘‘(5), or (8)’’ and inserting ‘‘or (5)’’, and
(B) by striking ‘‘or (14)’’ and inserting ‘‘(14), or (15)’’.
(5) Paragraph (2) of section 7213(a) is amended by striking
‘‘or (12)’’ and inserting ‘‘(12), or (15)’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall take effect on the date of the enactment of this Act.
SEC. 1207. DISCLOSURE OF RETURNS AND RETURN INFORMATION TO
DESIGNEE OF TAXPAYER.
Subsection (c) of section 6103 (relating to disclosure of returns
and return information to designee of taxpayer) is amended by
striking ‘‘written request for or consent to such disclosure’’ and
inserting ‘‘request for or consent to such disclosure’’.
SEC. 1208. STUDY OF NETTING OF INTEREST ON OVERPAYMENTS AND
LIABILITIES.
(a) IN GENERAL.—The Secretary of the Treasury or his delegate
shall—
(1) conduct a study of the manner in which the Internal
Revenue Service has implemented the netting of interest on
overpayments and underpayments and of the policy and
administrative implications of global netting, and
(2) before submitting the report of such study, hold a public
hearing to receive comments on the matters included in such
study.
(b) REPORT.—The report of such study shall be submitted not
later than 6 months after the date of the enactment of this Act
to the Committee on Ways and Means of the House of Representa-
tives and the Committee on Finance of the Senate.
SEC. 1209. EXPENSES OF DETECTION OF UNDERPAYMENTS AND
FRAUD, ETC.
(a) IN GENERAL.—Section 7623 (relating to expenses of deduc-
tion and punishment of frauds) is amended to read as follows:
‘‘SEC. 7623. EXPENSES OF DETECTION OF UNDERPAYMENTS AND
FRAUD, ETC.
‘‘The Secretary, under regulations prescribed by the Secretary,
is authorized to pay such sums as he deems necessary for—
‘‘(1) detecting underpayments of tax, and
‘‘(2) detecting and bringing to trial and punishment persons
guilty of violating the internal revenue laws or conniving at
the same,
in cases where such expenses are not otherwise provided for by
law. Any amount payable under the preceding sentence shall be
paid from the proceeds of amounts (other than interest) collected
by reason of the information provided, and any amount so collected
shall be available for such payments.’’.
(b) CLERICAL AMENDMENT.—The table of sections for subchapter
B of chapter 78 is amended by striking the item relating to section
7623 and inserting the following new item:
‘‘Sec. 7623. Expenses of detection of underpayments and fraud, etc.’’.
H. R. 2337—23
(c) EFFECTIVE DATE.—The amendments made by this section
shall take effect on the date which is 6 months after the date
of the enactment of this Act.
(d) REPORT.—The Secretary of the Treasury or his delegate
shall submit an annual report to the Committee on Ways and
Means of the House of Representatives and the Committee on
Finance of the Senate on the payments under section 7623 of
the Internal Revenue Code of 1986 during the year and on the
amounts collected for which such payments were made.
SEC. 1210. USE OF PRIVATE DELIVERY SERVICES FOR TIMELY-MAIL-
ING-AS-TIMELY-FILING RULE.
Section 7502 (relating to timely mailing treated as timely filing
and paying) is amended by adding at the end the following new
subsection:
‘‘(f) TREATMENT OF PRIVATE DELIVERY SERVICES.—
‘‘(1) IN
GENERAL.—Any reference in this section to the
United States mail shall be treated as including a reference
to any designated delivery service, and any reference in this
section to a postmark by the United States Postal Service
shall be treated as including a reference to any date recorded
or marked as described in paragraph (2)(C) by any designated
delivery service.
‘‘(2) DESIGNATED DELIVERY SERVICE.—For purposes of this
subsection, the term ‘designated delivery service’ means any
delivery service provided by a trade or business if such service
is designated by the Secretary for purposes of this section.
The Secretary may designate a delivery service under the
preceding sentence only if the Secretary determines that such
service—
‘‘(A) is available to the general public,
‘‘(B) is at least as timely and reliable on a regular
basis as the United States mail,
‘‘(C) records electronically to its data base, kept in
the regular course of its business, or marks on the cover
in which any item referred to in this section is to be
delivered, the date on which such item was given to such
trade or business for delivery, and
‘‘(D) meets such other criteria as the Secretary may
prescribe.
‘‘(3) EQUIVALENTS OF REGISTERED AND CERTIFIED MAIL.—
The Secretary may provide a rule similar to the rule of para-
graph (1) with respect to any service provided by a designated
delivery service which is substantially equivalent to United
States registered or certified mail.’’.
SEC. 1211. REPORTS ON MISCONDUCT OF IRS EMPLOYEES.
On or before June 1 of each calendar year after 1996, the
Secretary of the Treasury shall submit to the Committee on Ways
and Means of the House of Representatives and the Committee
on Finance of the Senate a report on—
(1) all categories of instances involving the misconduct
of employees of the Internal Revenue Service during the preced-
ing calendar year, and
(2) the disposition during the preceding calendar year of
any such instances (without regard to the year of the mis-
conduct).