SEC. 249. DISCLOSURE OF TAXPAYER IDENTITY FOR TAX
REFUND PURPOSES.
(a) IN GENERAL.—Paragraph (1) of section 6103(m)
(relating to disclosure of taxpayer identity information) is
amended by striking ‘‘and other media’’ and by inserting
‘‘, other media, and through any other means of mass com-
munication,’’.
(b) EFFECTIVE DATE.—The amendments made by this
section shall take effect on the date of the enactment of this
Act.
Subtitle E—Miscellaneous
SEC. 251. CLARIFICATION OF DEFINITION OF CHURCH TAX
INQUIRY.
Subsection (i) of section 7611 (relating to section not
to apply to criminal investigations, etc.) is amended by
striking ‘‘or’’ at the end of paragraph (4), by striking the
period at the end of paragraph (5) and inserting ‘‘, or’’,
and by inserting after paragraph (5) the following:
‘‘(6) information provided by the Secretary re-
lated to the standards for exemption from tax under
this title and the requirements under this title relat-
ing to unrelated business taxable income.’’.
SEC. 252. EXPANSION OF DECLARATORY JUDGMENT REM-
EDY TO TAX-EXEMPT ORGANIZATIONS.
(a) IN GENERAL.—Paragraph (1) of section 7428(a)
(relating to creation of remedy) is amended—
(1) in subparagraph (B) by inserting after
‘‘509(a))’’ the following: ‘‘or as a private operating
foundation (as defined in section 4942(j)(3))’’; and
(2) by amending subparagraph (C) to read as
follows:
‘‘(C) with respect to the initial qualification
or continuing qualification of an organization as
an organization described in section 501(c)
(other than paragraph (3)) which is exempt from
tax under section 501(a), or’’.
(b) COURT JURISDICTION.—Subsection (a) of section
7428 is amended in the material following paragraph (2)
by striking ‘‘United States Tax Court, the United States
Claims Court, or the district court of the United States for
the District of Columbia’’ and inserting the following:
‘‘United States Tax Court (in the case of any such deter-
mination or failure) or the United States Claims Court or
the district court of the United States for the District of
Columbia (in the case of a determination or failure with
respect to an issue referred to in subparagraph (A) or (B)
of paragraph (1)),’’.
(c) EFFECTIVE DATE.—The amendments made by this
section shall apply to pleadings filed with respect to deter-
minations (or requests for determinations) made after the
date of the enactment of this Act.
SEC. 253. EMPLOYEE MISCONDUCT REPORT TO INCLUDE
SUMMARY OF COMPLAINTS BY CATEGORY.
(a) IN GENERAL.—Clause (ii) of section 7803(d)(2)(A)
is amended by inserting before the semicolon at the end the
following: ‘‘, including a summary (by category) of the 10
most common complaints made and the number of such
common complaints’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall apply with respect to reporting periods
ending after the date of the enactment of this Act.
SEC. 254. ANNUAL REPORT ON AWARDS OF COSTS AND CER-
TAIN FEES IN ADMINISTRATIVE AND COURT
PROCEEDINGS.
Not later than 3 months after the close of each Federal
fiscal year after fiscal year 2001, the Treasury Inspector
General for Tax Administration shall submit a report to
Congress which specifies for such year—
(1) the number of payments made by the United
States pursuant to section 7430 of the Internal Rev-
enue Code of 1986 (relating to awarding of costs and
certain fees);
(2) the amount of each such payment;
(3) an analysis of any administrative issue giv-
ing rise to such payments; and
(4) changes (if any) which will be implemented
as a result of such analysis and other changes (if
any) recommended by the Treasury Inspector General
for Tax Administration as a result of such analysis.
SEC. 255. ANNUAL REPORT ON ABATEMENT OF PENALTIES.
Not later than 6 months after the close of each Federal
fiscal year after fiscal year 2001, the Treasury Inspector
General for Tax Administration shall submit a report to
Congress on abatements of penalties under the Internal Rev-
enue Code of 1986 during such year, including information
on the reasons and criteria for such abatements.
SEC. 256. BETTER MEANS OF COMMUNICATING WITH TAX-
PAYERS.
Not later than 18 months after the date of the enact-
ment of this Act, the Treasury Inspector General for Tax
Administration shall submit a report to Congress evalu-
ating whether technological advances, such as e-mail and
facsimile transmission, permit the use of alternative means
for the Internal Revenue Service to communicate with tax-
payers.
SEC. 257. EXPLANATION OF STATUTE OF LIMITATIONS AND
CONSEQUENCES OF FAILURE TO FILE.
The Secretary of the Treasury or the Secretary’s dele-
gate shall, as soon as practicable but not later than 180
days after the date of the enactment of this Act, revise the
statement required by section 6227 of the Omnibus Tax-
payer Bill of Rights (Internal Revenue Service Publication
No. 1), and any instructions booklet accompanying a gen-
eral income tax return form for taxable years beginning
after 2001 (including forms 1040, 1040A, 1040EZ, and any
similar or successor forms relating thereto), to provide for
an explanation of—
(1) the limitations imposed by section 6511 of
the Internal Revenue Code of 1986 on credits and re-
funds; and
(2) the consequences under such section 6511 of
the failure to file a return of tax.
SEC. 258. AMENDMENT TO TREASURY AUCTION REFORMS.
(a) IN GENERAL.—Clause (i) of section 202(c)(4)(B)
of the Government Securities Act Amendments of 1993 (31
U.S.C. 3121 note) is amended by inserting before the semi-
colon ‘‘(or, if earlier, at the time the Secretary releases the
minutes of the meeting in accordance with paragraph (2))’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall apply to meetings held after the date of
the enactment of this Act.
SEC. 259. ENROLLED AGENTS.
(a) IN GENERAL.—Chapter 77 (relating to miscella-
neous provisions) is amended by adding at the end the fol-
lowing new section:
‘‘SEC. 7527. ENROLLED AGENTS.
‘‘(a) IN GENERAL.—The Secretary may prescribe such
regulations as may be necessary to regulate the conduct of
enrolled agents in regards to their practice before the Inter-
nal Revenue Service.
‘‘(b) USE
OF CREDENTIALS.—Any enrolled agents
properly licensed to practice as required under rules pro-
mulgated under section (a) herein shall be allowed to use
the credentials or designation as ‘enrolled agent’, ‘EA’, or
‘E.A.’.’’.
(b) CLERICAL AMENDMENT.—The table of sections for
chapter 77 is amended by adding at the end the following
new item:
‘‘Sec. 7525. Enrolled agents.’’.
(c) PRIOR REGULATIONS.—Nothing in the amend-
ments made by this section shall be construed to have any
effect on part 10 of title 31, Code of Federal Regulations,
or any other Federal rule or regulation issued before the
date of the enactment of this Act.
SEC. 260. FINANCIAL MANAGEMENT SERVICE FEES.
Notwithstanding any other provision of law, the Fi-
nancial Management Service may charge the Internal Rev-
enue Service, and the Internal Revenue Service may pay
the Financial Management Service, a fee sufficient to cover
the full cost of implementing a continuous levy program
under subsection (h) of section 6331 of the Internal Revenue
Code of 1986. Any such fee shall be based on actual levies
made and shall be collected by the Financial Management
Service by the retention of a portion of amounts collected
by levy pursuant to that subsection. Amounts received by
the Financial Management Service as fees under that sub-
section shall be deposited into the account of the Depart-
ment of the Treasury under section 3711(g)(7) of title 31,
United States Code, and shall be collected and accounted
for in accordance with the provisions of that section. The
amount credited against the taxpayer’s liability on account
of the continuous levy shall be the amount levied, without
reduction for the amount paid to the Financial Manage-
ment Service as a fee.
SEC. 261. CAPITAL GAIN TREATMENT UNDER SECTION
631(b) TO APPLY TO OUTRIGHT SALES BY
LAND OWNER.
(a) IN GENERAL.—The first sentence of section 631(b)
(relating to disposal of timber with a retained economic in-
terest) is amended by striking ‘‘retains an economic interest
in such timber’’ and inserting ‘‘either retains an economic
interest in such timber or makes an outright sale of such
timber’’.
(b) CONFORMING AMENDMENT.—The third sentence of
section 631(b) is amended by striking ‘‘The date of dis-
posal’’ and inserting ‘‘In the case of disposal of timber with
a retained economic interest, the date of disposal’’.
(c) EFFECTIVE DATE.—The amendments made by this
section shall apply to sales after the date of the enactment
of this Act.
SEC. 262. ACCELERATION OF EFFECTIVE DATE FOR EXPAN-
SION OF ADOPTION TAX CREDIT AND ADOP-
TION ASSISTANCE PROGRAMS.
(a) IN GENERAL.—Subsection (g) of section 202 of the
Economic Growth and Tax Relief Reconciliation Act of
2001 is amended to read as follows:
‘‘(g) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after De-
cember 31, 2001.’’.
(b) TECHNICAL CORRECTIONS.—Paragraph (3) of sec-
tion 411(c) of the Job Creation and Worker Assistance Act
of 2002 is amended to read as follows:
‘‘(3) EFFECTIVE DATE.—The amendments made
by this subsection shall apply to taxable years begin-
ning after December 31, 2001.’’.
Subtitle F—Low-Income Taxpayer
Clinics
SEC. 271. LOW-INCOME TAXPAYER CLINICS.
(a) LIMITATION ON AMOUNT OF GRANTS.—Paragraph
(1) of section 7526(c) (relating to special rules and limita-
tions) is amended by striking ‘‘$6,000,000 per year’’ and
inserting ‘‘$9,000,000 for 2002, $12,000,000 for 2003, and
$15,000,000 for each year thereafter’’.
(b) LIMITATION ON USE OF CLINICS FOR TAX RETURN
PREPARATION.—Subparagraph (A) of section 7526(b)(1) is
amended by adding at the end the following flush language:
‘‘The term does not include a clinic that provides
routine tax return preparation. The preceding
sentence shall not apply to return preparation in
connection with a controversy with the Internal
Revenue Service.’’.
(c) PROMOTION
OF
CLINICS.—Section 7526(c) is
amended by adding at the end the following new paragraph:
‘‘(7) PROMOTION OF CLINICS.—The Secretary is
authorized to promote the benefits of and encourage
the use of low-income taxpayer clinics through the use
of mass communications, referrals, and other means.’’.
Amend the title so as to read ‘‘An Act to amend the
Internal Revenue Code of 1986 to make permanent the
tax reductions enacted by the Economic Growth and Tax
Relief Reconciliation Act of 2001 and to protect tax-
payers and ensure accountability of the Internal Revenue
Service.’’.
Attest:
Clerk.
107TH CONGRESS
2D SESSION
H.R. 586
HOUSE AMENDMENTS TO
SENATE AMENDMENT