IB 
Union Calendar No. 362 
110TH CONGRESS 
2D SESSION 
H. R. 5719 
[Report No. 110–584] 
To amend the Internal Revenue Code of 1986 to conform return preparer 
penalty standards, delay implementation of withholding taxes on govern-
ment contractors, enhance taxpayer protections, assist low-income tax-
payers, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 8, 2008 
Mr. RANGEL (for himself, Mr. MCDERMOTT, Mr. LEWIS of Georgia, Mr. POM-
EROY, Mr. EMANUEL, Mr. BLUMENAUER, Mr. KIND, Ms. BERKLEY, Mr. 
CROWLEY, Mr. MEEK of Florida, Mr. ELLISON, Ms. GIFFORDS, Mr. 
HALL of New York, Mr. MAHONEY of Florida, Mr. WALZ of Minnesota, 
Mr. WELCH of Vermont, and Mrs. JONES of Ohio) introduced the fol-
lowing bill; which was referred to the Committee on Ways and Means 
APRIL 14, 2008 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on April 8, 2008] 
A BILL 
To amend the Internal Revenue Code of 1986 to conform 
return preparer penalty standards, delay implementation 
of withholding taxes on government contractors, enhance 
taxpayer protections, assist low-income taxpayers, and 
for other purposes. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE, ETC. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Taxpayer Assistance and Simplification Act of 2008’’. 
(b) AMENDMENT OF 1986 CODE.—Except as otherwise 
expressly provided, whenever in this Act an amendment or 
repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be consid-
ered to be made to a section or other provision of the Inter-
nal Revenue Code of 1986. 
(c) TABLE OF CONTENTS.—The table of contents of this 
Act is as follows: 
Sec. 1. Short title, etc. 
Sec. 2. Modification of penalty on understatement of taxpayer’s liability by tax 
return preparer. 
Sec. 3. Removal of cellular telephones (or similar telecommunications equipment) 
from listed property. 
Sec. 4. Delay of application of withholding requirement on certain governmental 
payments for goods and services. 
Sec. 5. Elderly and disabled individuals receiving in-home care under certain 
government programs not subject to employment tax provisions. 
Sec. 6. Referrals to low income taxpayer clinics permitted. 
Sec. 7. Programs for the benefit of low-income taxpayers. 
Sec. 8. EITC outreach. 
Sec. 9. Prohibition on IRS debt indicators for predatory refund anticipation 
loans. 
Sec. 10. Study on delivery of tax refunds. 
Sec. 11. Extension of time for return of property for wrongful levy. 
Sec. 12. Individuals held harmless on wrongful levy, etc., on individual retire-
ment plan. 
Sec. 13. Taxpayer notification of suspected identity theft. 
Sec. 14. Repeal of authority to enter into private debt collection contracts. 
Sec. 15. Clarification of IRS unclaimed refund authority. 
Sec. 16. Prohibition on misuse of Department of the Treasury names and sym-
bols. 
Sec. 17. Substantiation of amounts paid or distributed out of health savings ac-
count. 
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Sec. 18. Certain domestically controlled foreign persons performing services under 
contract with United States Government treated as American 
employers. 
Sec. 19. Time for payment of corporate estimated tax. 
SEC. 2. MODIFICATION OF PENALTY ON UNDERSTATEMENT 
OF TAXPAYER’S LIABILITY BY TAX RETURN 
PREPARER. 
(a) IN GENERAL.—Subsection (a) of section 6694 (re-
lating to understatement due to unreasonable positions) is 
amended to read as follows: 
‘‘(a) UNDERSTATEMENT DUE TO UNREASONABLE PO-
SITIONS.— 
‘‘(1) IN GENERAL.—If a tax return preparer— 
‘‘(A) prepares any return or claim of refund 
with respect to which any part of an understate-
ment of liability is due to a position described 
in paragraph (2), and 
‘‘(B) knew (or reasonably should have 
known) of the position, 
such tax return preparer shall pay a penalty with re-
spect to each such return or claim in an amount 
equal to the greater of $1,000 or 50 percent of the in-
come derived (or to be derived) by the tax return pre-
parer with respect to the return or claim. 
‘‘(2) UNREASONABLE POSITION.— 
‘‘(A) IN
GENERAL.—Except as otherwise 
provided in this paragraph, a position is de-
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scribed in this paragraph unless there is or was 
substantial authority for the position. 
‘‘(B) DISCLOSED POSITIONS.—If the posi-
tion was disclosed as provided in section 
6662(d)(2)(B)(ii)(I) and is not a position to 
which subparagraph (C) applies, the position is 
described in this paragraph unless there is a rea-
sonable basis for the position. 
‘‘(C) TAX
SHELTERS
AND
REPORTABLE 
TRANSACTIONS.—If the position is with respect 
to 
a 
tax 
shelter 
(as 
defined 
in 
section 
6662(d)(2)(C)(ii)) or a reportable transaction to 
which section 6662A applies, the position is de-
scribed in this paragraph unless it is reasonable 
to believe that the position would more likely 
than not be sustained on its merits. 
‘‘(3) REASONABLE CAUSE EXCEPTION.—No pen-
alty shall be imposed under this subsection if it is 
shown that there is reasonable cause for the under-
statement and the tax return preparer acted in good 
faith.’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply— 
(1) in the case of a position described in sub-
paragraph (A) or (B) of section 6694(a)(2) of the In-
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ternal Revenue Code of 1986 (as amended by this sec-
tion), to returns prepared after May 25, 2007, and 
(2) in the case of a position described in sub-
paragraph (C) of such section (as amended by this 
section), to returns prepared for taxable years ending 
after the date of the enactment of this Act. 
SEC. 3. REMOVAL OF CELLULAR TELEPHONES (OR SIMILAR 
TELECOMMUNICATIONS EQUIPMENT) FROM 
LISTED PROPERTY. 
(a) IN
GENERAL.—Subparagraph (A) of section 
280F(d)(4) (defining listed property) is amended by insert-
ing ‘‘and’’ at the end of clause (iv), by striking clause (v), 
and by redesignating clause (vi) as clause (v). 
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall apply to taxable years beginning after De-
cember 31, 2008. 
SEC. 4. DELAY OF APPLICATION OF WITHHOLDING RE-
QUIREMENT ON CERTAIN GOVERNMENTAL 
PAYMENTS FOR GOODS AND SERVICES. 
(a) IN GENERAL.—Subsection (b) of section 511 of the 
Tax Increase Prevention and Reconciliation Act of 2005 is 
amended by striking ‘‘December 31, 2010’’ and inserting 
‘‘December 31, 2011’’. 
(b) REPORT TO CONGRESS.—Not later than 6 months 
after the date of the enactment of this Act, the Secretary 
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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 with respect to the with-
holding requirements of section 3402(t) of the Internal Rev-
enue Code of 1986, including a detailed analysis of— 
(1) the problems, if any, which are anticipated 
in administering and complying with such require-
ments, 
(2) the burdens, if any, that such requirements 
will place on governments and businesses (taking into 
account such mechanisms as may be necessary to ad-
minister such requirements), and 
(3) the application of such requirements to small 
expenditures for services and goods by governments. 
SEC. 5. ELDERLY AND DISABLED INDIVIDUALS RECEIVING 
IN-HOME CARE UNDER CERTAIN GOVERN-
MENT PROGRAMS NOT SUBJECT TO EMPLOY-
MENT TAX PROVISIONS. 
(a) IN GENERAL.—Chapter 25 (relating to general 
provisions relating to employment taxes) is amended by 
adding at the end the following new section: 
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‘‘SEC. 3511. ELDERLY AND DISABLED INDIVIDUALS RECEIV-
ING IN-HOME CARE UNDER CERTAIN GOV-
ERNMENT PROGRAMS. 
‘‘(a) IN GENERAL.—In the case of amounts paid under 
a home care service program to a home care service provider 
by the fiscal administrator of such program— 
‘‘(1) the home care service recipient shall not be 
liable for the payment of any taxes imposed under 
this subtitle with respect to amounts paid for the pro-
vision of services under such program, and 
‘‘(2) the fiscal administrator shall be so liable. 
‘‘(b) DEFINITIONS.—For purposes of this section— 
‘‘(1) HOME CARE SERVICE PROGRAM.—The term 
‘home care service program’ means a State or local 
government program— 
‘‘(A) any portion of which is funded with 
Federal funds, and 
‘‘(B) under which domestic services are pro-
vided to elderly or disabled individuals in their 
homes. 
Such term shall not include any program to the ex-
tent home care service recipients make payments to 
the home care service providers for such in-home do-
mestic services. 
‘‘(2) HOME CARE SERVICE PROVIDER.—The term 
‘home care service provider’ means any individual 
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who provides domestic services to a home care service 
recipient under a home care service program. 
‘‘(3) HOME
CARE
SERVICE
RECIPIENT.—The 
term ‘home care service recipient’ means any indi-
vidual receiving domestic services under a home care 
service program. 
‘‘(4) FISCAL ADMINISTRATOR.—The term ‘fiscal 
administrator’ means any person or governmental en-
tity who pays amounts under a home care service 
program to home care service providers for the provi-
sion of domestic services under such program. 
‘‘(c) RETURNS BY FISCAL ADMINISTRATOR.—For pur-
poses of this section— 
‘‘(1) IN GENERAL.—Returns relating to taxes im-
posed or amounts required to be withheld under this 
subtitle shall be made under the identifying number 
of the fiscal administrator. 
‘‘(2) IDENTIFICATION OF SERVICE RECIPIENT.— 
The fiscal administrator shall, to the extent required 
under regulations prescribed by the Secretary, make 
a return setting forth— 
‘‘(A) the name, address, and identifying 
number of each home care service recipient for 
whom amounts are paid by such fiscal adminis-
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trator under the home care services program, 
and 
‘‘(B) such other information as the Sec-
retary may require. 
‘‘(d) REGULATIONS.—The Secretary may prescribe 
such regulations or other guidance as may be necessary to 
carry out the purposes of this section, including requiring 
deposits of any tax imposed under this subtitle.’’. 
(b) SERVICE RECIPIENT IDENTIFICATION RETURN 
TREATED AS INFORMATION RETURN.—Paragraph (3) of 
section 6724(d) is amended by striking ‘‘and’’ at the end 
of subparagraph (C)(ii), by striking the period at the end 
of subparagraph (D)(ii) and inserting ‘‘, and’’, and by add-
ing at the end the following new subparagraph: 
‘‘(E) 
any 
requirement 
under 
section 
3511(c)(2).’’. 
(c) CLERICAL AMENDMENT.—The table of sections for 
chapter 25 is amended by adding at the end the following 
new item: 
‘‘Sec. 3511. Elderly and disabled individuals receiving in-home care under cer-
tain government programs.’’. 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall apply to amounts paid after December 31, 
2008. 
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SEC. 6. REFERRALS TO LOW INCOME TAXPAYER CLINICS 
PERMITTED. 
(a) IN GENERAL.—Subsection (c) of section 7526 of 
the Internal Revenue Code of 1986 is amended by adding 
at the end the following new paragraph: 
‘‘(6) TREASURY
EMPLOYEES
PERMITTED
TO 
REFER TAXPAYERS TO QUALIFIED LOW-INCOME TAX-
PAYER CLINICS.—Notwithstanding any other provi-
sion of law, officers and employees of the Department 
of the Treasury may refer taxpayers for advice and 
assistance to qualified low-income taxpayer clinics re-
ceiving funding under this section.’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to referrals made after the date of the 
enactment of this Act. 
SEC. 7. PROGRAMS FOR THE BENEFIT OF LOW-INCOME TAX-
PAYERS. 
(a) VOLUNTEER
INCOME
TAX
ASSISTANCE
PRO-
GRAMS.—Chapter 77 (relating to miscellaneous provisions) 
is amended by inserting after section 7526 the following 
new section: 
‘‘SEC. 7526A. VOLUNTEER INCOME TAX ASSISTANCE PRO-
GRAMS. 
‘‘(a) IN GENERAL.—The Secretary may, subject to the 
availability of appropriated funds, make grants to provide 
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matching funds for the development, expansion, or continu-
ation of volunteer income tax assistance programs. 
‘‘(b) VOLUNTEER INCOME TAX ASSISTANCE PRO-
GRAM.—For purposes of this section, the term ‘volunteer in-
come tax assistance program’ means a program— 
‘‘(1) which does not charge taxpayers for its re-
turn preparation services, 
‘‘(2) which operates programs to assist low and 
moderate-income (as determined by the Secretary) 
taxpayers in preparing and filing their Federal in-
come tax returns, and 
‘‘(3) in which all of the volunteers who assist in 
the preparation of Federal income tax returns meet 
the requirements prescribed by the Secretary. 
‘‘(c) SPECIAL RULES AND LIMITATIONS.— 
‘‘(1) AGGREGATE LIMITATION.—Unless otherwise 
provided by specific appropriation, the Secretary 
shall not allocate more than $10,000,000 per year (ex-
clusive of costs of administering the program) to 
grants under this section. 
‘‘(2) OTHER APPLICABLE RULES.—Rules similar 
to the rules under paragraphs (2) through (6) of sec-
tion 7526(c) shall apply with respect to the awarding 
of grants to volunteer income tax assistance pro-
grams.’’. 
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(b) INCREASE IN AUTHORIZED GRANTS FOR LOW-IN-
COME
TAXPAYER
CLINICS.—Paragraph (1) of section 
7526(c) (relating to aggregate limitation) is amended by 
striking ‘‘$6,000,000’’ and inserting ‘‘$10,000,000’’. 
(c) CLERICAL AMENDMENTS.— 
(1) Section 7526(c)(5) is amended by inserting 
‘‘qualified’’ before ‘‘low-income’’. 
(2) The table of sections for chapter 77 is amend-
ed by inserting after the item relating to section 7526 
the following new item: 
‘‘Sec. 7526A. Volunteer income tax assistance programs.’’. 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall take effect on the date of the enactment of this 
Act. 
SEC. 8. EITC OUTREACH. 
(a) IN GENERAL.—Section 32 (relating to earned in-
come) is amended by adding at the end the following new 
subsection: 
‘‘(n) NOTIFICATION OF POTENTIAL ELIGIBILITY FOR 
CREDIT AND REFUND.— 
‘‘(1) IN GENERAL.—To the extent possible and on 
an annual basis, the Secretary shall provide to each 
taxpayer who— 
‘‘(A) for any preceding taxable year for 
which credit or refund is not precluded by sec-
tion 6511, and 
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‘‘(B) did not claim the credit under sub-
section (a) but may be allowed such credit for 
any such taxable year based on return or return 
information (as defined in section 6103(b)) 
available to the Secretary, 
notice that such taxpayer may be eligible to claim 
such credit and a refund for such taxable year. 
‘‘(2) NOTICE.—Notice provided under paragraph 
(1) shall be in writing and sent to the last known ad-
dress of the taxpayer.’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall take effect on the date of the enactment of this 
Act. 
SEC. 9. PROHIBITION ON IRS DEBT INDICATORS FOR PRED-
ATORY REFUND ANTICIPATION LOANS. 
(a) IN GENERAL.—Subsection (f) of section 6011 (re-
lating to promotion of electronic filing) is amended by add-
ing at the end the following new paragraph: 
‘‘(3) PROHIBITION ON IRS DEBT INDICATORS FOR 
PREDATORY REFUND ANTICIPATION LOANS.— 
‘‘(A) IN GENERAL.—In carrying out any 
program under this subsection, the Secretary 
shall not provide a debt indicator to any person 
with respect to any refund anticipation loan if 
the Secretary determines that the business prac-
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tices of such person involve refund anticipation 
loans and related charges and fees that are pred-
atory. 
‘‘(B) REFUND
ANTICIPATION
LOAN.—For 
purposes of this paragraph, the term ‘refund an-
ticipation loan’ means a loan of money or of any 
other thing of value to a taxpayer secured by the 
taxpayer’s anticipated receipt of a Federal tax 
refund. 
‘‘(C) IRS DEBT INDICATOR.—For purposes 
of this paragraph, the term ‘debt indicator’ 
means a notification provided through a tax re-
turn’s acknowledgment file that a refund will be 
offset to repay debts for delinquent Federal or 
State taxes, student loans, child support, or other 
Federal agency debt.’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall take effect on the date of the enactment of this 
Act. 
SEC. 10. STUDY ON DELIVERY OF TAX REFUNDS. 
(a) IN GENERAL.—The Secretary of the Treasury, in 
consultation with the National Taxpayer Advocate, shall 
conduct a study on the feasibility of delivering tax refunds 
on debit cards, prepaid cards, and other electronic means 
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to assist individuals that do not have access to financial 
accounts or institutions. 
(b) REPORT.—Not later than 1 year after the date of 
the enactment of this Act, the Secretary of the Treasury 
shall submit a report to Congress containing the results of 
the study conducted under subsection (a). 
SEC. 11. EXTENSION OF TIME FOR RETURN OF PROPERTY 
FOR WRONGFUL LEVY. 
(a) EXTENSION OF TIME FOR RETURN OF PROPERTY 
SUBJECT TO LEVY.—Subsection (b) of section 6343 (relat-
ing to return of property) is amended by striking ‘‘9 
months’’ and inserting ‘‘2 years’’. 
(b) PERIOD OF LIMITATION ON SUITS.—Subsection (c) 
of section 6532 (relating to suits by persons other than tax-
payers) is amended— 
(1) in paragraph (1) by striking ‘‘9 months’’ 
and inserting ‘‘2 years’’, and 
(2) in paragraph (2) by striking ‘‘9-month’’ and 
inserting ‘‘2-year’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to— 
(1) levies made after the date of the enactment 
of this Act, and 
(2) levies made on or before such date if the 9- 
month period has not expired under section 6343(b) 
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of the Internal Revenue Code of 1986 (without regard 
to this section) as of such date. 
SEC. 12. INDIVIDUALS HELD HARMLESS ON WRONGFUL 
LEVY, ETC., ON INDIVIDUAL RETIREMENT 
PLAN. 
(a) IN GENERAL.—Section 6343 (relating to authority 
to release levy and return property) is amended by adding 
at the end the following new subsection: 
‘‘(f) INDIVIDUALS HELD HARMLESS ON WRONGFUL 
LEVY, ETC. ON INDIVIDUAL RETIREMENT PLAN.— 
‘‘(1) IN GENERAL.—If the Secretary determines 
that an individual retirement plan has been levied 
upon in a case to which subsection (b) or (d)(2)(A) 
applies, an amount equal to the sum of— 
‘‘(A) the amount of money returned by the 
Secretary on account of such levy, and 
‘‘(B) interest paid under subsection (c) on 
such amount of money, 
may be deposited into such individual retirement 
plan or any other individual retirement plan (other 
than an endowment contract) to which a rollover 
from the plan levied upon is permitted. An amount 
may not be deposited into a Roth IRA under the pre-
ceding sentence unless the individual retirement plan 
levied upon was a Roth IRA at the time of such levy. 
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‘‘(4) 
INTEREST.—Notwithstanding 
subsection 
(d), interest shall be allowed under subsection (c) in 
a case in which the Secretary makes a determination 
described in subsection (d)(2)(A) with respect to a 
levy upon an individual retirement plan.’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to amounts paid under subsections (b), 
(c), and (d)(2)(A) of section 6343 of the Internal Revenue 
Code of 1986 after the date of the enactment of this Act. 
SEC. 13. TAXPAYER NOTIFICATION OF SUSPECTED IDEN-
TITY THEFT. 
(a) IN GENERAL.—Chapter 77 (relating to miscella-
neous provisions) is amended by adding at the end the fol-
lowing new section: 
‘‘SEC. 
7529. 
NOTIFICATION 
OF 
SUSPECTED 
IDENTITY 
THEFT. 
‘‘If, in the course of an investigation under the inter-
nal revenue laws, the Secretary determines that there was 
or may have been an unauthorized use of the identity of 
the taxpayer or a dependent of the taxpayer, the Secretary 
shall, to the extent permitted by law— 
‘‘(1) as soon as practicable and without jeopard-
izing such investigation, notify the taxpayer of such 
determination, and 
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‘‘(2) if any person is criminally charged by in-
dictment or information with respect to such unau-
thorized use, notify such taxpayer as soon as prac-
ticable of such charge.’’. 
(b) CLERICAL AMENDMENT.—The table of sections for 
chapter 77 is amended by adding at the end the following 
new item: 
‘‘Sec. 7529. Notification of suspected identity theft.’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to determinations made after the date 
of the enactment of this Act. 
SEC. 14. REPEAL OF AUTHORITY TO ENTER INTO PRIVATE 
DEBT COLLECTION CONTRACTS. 
(a) IN GENERAL.—Subchapter A of chapter 64 is 
amended by striking section 6306. 
(b) CONFORMING AMENDMENTS.— 
(1) Subchapter B of chapter 76 is amended by 
striking section 7433A. 
(2) Section 7811 is amended by striking sub-
section (g). 
(3) Section 1203 of the Internal Revenue Service 
Restructuring Act of 1998 is amended by striking 
subsection (e). 
(4) The table of sections for subchapter A of 
chapter 64 is amended by striking the item relating 
to section 6306. 
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(5) The table of sections for subchapter B of 
chapter 76 is amended by striking the item relating 
to section 7433A. 
(c) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as otherwise provided 
in this subsection, the amendments made by this sec-
tion shall take effect on the date of the enactment of 
this Act. 
(2) EXCEPTION
FOR
EXISTING
CONTRACTS, 
ETC.—The amendments made by this section shall not 
apply to any contract which was entered into before 
March 1, 2008, and is not renewed or extended on or 
after such date. 
(3) UNAUTHORIZED
CONTRACTS
AND
EXTEN-
SIONS TREATED AS VOID.—Any qualified tax collec-
tion contract (as defined in section 6306 of the Inter-
nal Revenue Code of 1986, as in effect before its re-
peal) which is entered into on or after March 1, 2008, 
and any extension or renewal on or after such date 
of any qualified tax collection contract (as so de-
fined), shall be void. 
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SEC. 15. CLARIFICATION OF IRS UNCLAIMED REFUND AU-
THORITY. 
Paragraph (1) of section 6103(m) (relating to tax re-
funds) is amended by inserting ‘‘, and through any other 
means of mass communication,’’ after ‘‘media’’. 
SEC. 16. PROHIBITION ON MISUSE OF DEPARTMENT OF THE 
TREASURY NAMES AND SYMBOLS. 
(a) IN GENERAL.—Subsection (a) of section 333 of title 
31, United States Code, is amended by inserting ‘‘Internet 
domain address,’’ after ‘‘solicitation,’’ both places it ap-
pears. 
(b) PENALTY FOR MISUSE BY ELECTRONIC MEANS.— 
Subsections (c)(2) and (d)(1) of section 333 of such Code 
are each amended by inserting ‘‘or any other mass commu-
nications by electronic means,’’ after ‘‘telecast,’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply with respect to violations occurring after 
the date of the enactment of this Act. 
SEC. 17. SUBSTANTIATION OF AMOUNTS PAID OR DISTRIB-
UTED OUT OF HEALTH SAVINGS ACCOUNT. 
(a) IN GENERAL.—Paragraph (1) of section 223(f) (re-
lating to amounts used for qualified medical expenses) is 
amended by inserting ‘‘(and, in the case of amounts paid 
or distributed after December 31, 2010, substantiated in a 
manner similar to the substantiation required for flexible 
spending arrangements)’’ after ‘‘account beneficiary’’. 
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(b) REPORTS.—Subsection (h) of section 223 (relating 
to reports) is amended— 
(1) by redesignating paragraphs (1) and (2) as 
subparagraphs (A) and (B), respectively, 
(2) by moving the text of subparagraphs (A) and 
(B) (as so redesignated) and the last sentence 2 ems 
to the right, 
(3) by striking ‘‘(h) REPORTS.—The Secretary 
may require—’’ and inserting the following: 
‘‘(h) REPORTS.— 
‘‘(1) IN
GENERAL.—The Secretary may re-
quire—’’, and 
(4) by adding at the end the following new para-
graph: 
‘‘(2) RELATING TO SUBSTANTIATION.—Not later 
than January 15 of each calendar year after 2011, 
the trustee of a health savings account shall make a 
report regarding such account to the Secretary and 
the account beneficiary setting forth— 
‘‘(A) the name, address, and identifying 
number of the account beneficiary, and 
‘‘(B) the amount paid or distributed out of 
such account for the preceding calendar year not 
substantiated in accordance with subsection 
(f)(1).’’. 
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