‘‘(B) if such offer is rejected by the Sec-
retary, during the 30 days thereafter (and, if
an appeal of such rejection is filed within such
30 days, during the period that such appeal is
pending).
For purposes of subparagraph (A), an offer is pend-
ing beginning on the date the Secretary accepts the
waiver in such offer of the period of limitations for
collecting such tax.
‘‘(2) INSTALLMENT
AGREEMENTS.—No levy
may be made under subsection (a) on the property
or rights to property of any person with respect to
any unpaid tax—
‘‘(A) during the period that an offer by
such person for an installment agreement under
section 6159 for payment of such unpaid tax is
pending with the Secretary,
‘‘(B) if such offer is rejected by the Sec-
retary, during the 30 days thereafter (and, if
an appeal of such rejection is filed within such
30 days, during the period that such appeal is
pending),
‘‘(C) during the period that such an in-
stallment agreement for payment of such un-
paid tax is in effect, and
‘‘(D) if such agreement is terminated by
the Secretary, during the 30 days thereafter
(and, if an appeal of such termination is filed
within such 30 days, during the period that
such appeal is pending).
‘‘(3) CERTAIN RULES TO APPLY.—Rules similar
to the rules of paragraphs (3), (4), and (5) of sub-
section (i) shall apply for purposes of this sub-
section.’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to—
(1) offers in compromise or for installment
agreements pending on or made after the 60th day
after the date of the enactment of this Act, and
(2) installment agreements entered into on or
after such 60th day.
SEC. 103. LEVY PROHIBITED WHILE DETERMINING VALID-
ITY OF ASSESSMENT.
(a) IN GENERAL.—Section 6331 (relating to levy and
distraint) is amended by redesignating subsection (k) as
subsection (l) and by inserting after subsection (j) the fol-
lowing new subsection:
‘‘(k) NO LEVY WHILE SECRETARY DETERMINES VA-
LIDITY OF ASSESSMENT.—
‘‘(1) IN GENERAL.—In the case of any unpaid
tax under subtitle A—
‘‘(A) which has been assessed against an
individual, and
‘‘(B) which was included in a notice of de-
ficiency under section 6212 mailed to the last
known address of such individual,
no levy may be made under subsection (a) on the
property or rights to property of any person with re-
spect to such tax during the 60-day period (or such
longer period as the Secretary may specify) begin-
ning on the date such individual requests that this
paragraph apply.
‘‘(2) EXCEPTION.—Paragraph (1) shall not
apply to any unpaid tax if the assessment of such
tax was previously prevented under section 6213 by
such individual.
‘‘(3) CERTAIN RULES TO APPLY.—Rules similar
to the rules of paragraphs (3), (4), and (5) of sub-
section (i) shall apply for purposes of this sub-
section.’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to taxes assessed on or after the
60th day after the date of the enactment of this Act.
SEC. 104. IRS COUNSEL APPROVAL REQUIRED FOR CER-
TAIN THIRD-PARTY COLLECTION ACTIVITIES.
(a) RESTRICTION ON FILING NOTICE OF LIEN.—Sec-
tion 6323 is amended by adding at the end the following
new subsection:
‘‘(k) IRS COUNSEL APPROVAL REQUIRED FOR FIL-
ING NOTICE ON PROPERTY HELD BY CERTAIN THIRD
PARTIES.—
‘‘(1) IN GENERAL.—The Secretary may file a
notice of a lien imposed by section 6321 against the
property or rights to property of any person who the
Secretary believes is holding such property or rights
as a nominee, transferee, or alter ego of the person
with respect to whose liability the lien arose only if
the filing of such notice is approved by the Chief
Counsel for the Internal Revenue Service (or such
Counsel’s delegate).
‘‘(2) EXCEPTION.—Paragraph (1) shall not
apply to any lien if the Secretary finds that the col-
lection of the tax is in jeopardy.’’.
(b) RESTRICTION ON LEVY.—Section 6331 (relating
to levy and distraint) is amended by redesignating sub-
section (l) as subsection (m) and by inserting after sub-
section (k) the following new subsection:
‘‘(l) IRS COUNSEL APPROVAL REQUIRED FOR LEVY
ON PROPERTY HELD BY CERTAIN THIRD PARTIES.—
‘‘(1) IN GENERAL.—The Secretary may levy on
the property or rights to property of any person who
the Secretary believes is holding such property or
rights as a nominee, transferee, or alter ego of the
person whose liability the Secretary is seeking to col-
lect only if the levy is approved by the Chief Counsel
for the Internal Revenue Service (or such Counsel’s
delegate).
‘‘(2) EXCEPTION.—Paragraph (1) shall not
apply to any levy if the Secretary finds that the col-
lection of the tax is in jeopardy.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxes assessed after the date
of the enactment of this Act.
SEC. 105. APPROVAL REQUIRED FOR LEVY ON CERTAIN AS-
SETS.
(a) IN GENERAL.—Subsection (e) of section 6334 is
amended to read as follows:
‘‘(e) LEVY ALLOWED ON CERTAIN ASSETS ONLY IN
CASE OF JEOPARDY OR CERTAIN APPROVAL.—
‘‘(1) PRINCIPAL
RESIDENCES.—Property de-
scribed in subsection (a)(13) shall not be exempt
from levy if the requirements of subparagraph (A)
or (B) of paragraph (3) are met.
‘‘(2) OTHER PROPERTY.—Levy may be made on
the following property only if the requirements of
subparagraph (A) or (B) of paragraph (3) are met:
‘‘(A) Any pension or annuity provided
under a qualified employer plan (as defined in
section 4972(d)(1), determined without regard
to subparagraph (B) thereof).
‘‘(B) Any life insurance, endowment, or
annuity contract.
This paragraph shall not apply to a levy to which
section 6331(h) applies.
‘‘(3) REQUIREMENTS.—
‘‘(A) APPROVAL.—The requirement of this
subparagraph is met if a district director or as-
sistant district director of the Internal Revenue
Service personally approves (in writing) the
levy.
‘‘(B) JEOPARDY.—The requirement of this
subparagraph is met if the Secretary finds that
the collection of tax is in jeopardy.’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to taxes assessed after the date
of the enactment of this Act.
SEC. 106. APPROVAL REQUIRED FOR JEOPARDY AND TER-
MINATION 
ASSESSMENTS 
AND 
JEOPARDY
LEVIES.
(a) IN GENERAL.—Paragraph (1) of section 7429(a)
(relating to review of jeopardy levy or assessment proce-
dures) is amended to read as follows:
‘‘(1) ADMINISTRATIVE REVIEW.—
‘‘(A) PRIOR APPROVAL REQUIRED.—No as-
sessment may be made under section 6851(a),
6852(a), 6861(a), or 6862, and no levy may be
made under section 6331(a) less than 30 days
after notice and demand for payment is made
under section 6331(d), unless the Chief Counsel
for the Internal Revenue Service (or such Coun-
sel’s delegate) personally approves (in writing)
such assessment or levy.
‘‘(B) INFORMATION TO TAXPAYER.—With-
in 5 days after the day on which such an as-
sessment or levy is made, the Secretary shall
provide the taxpayer with a written statement
of the information upon which the Secretary re-
lies in making such assessment or levy.’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to taxes assessed after the date
of the enactment of this Act.
SEC. 107. APPROVAL REQUIRED BEFORE SALE OF PERISH-
ABLE GOODS.
(a) IN GENERAL.—Paragraph (2) of section 6336
(relating to sale of perishable goods) is amended to read
as follows:
‘‘(2) IMMEDIATE SALE.—If—
‘‘(A) the owner does not pay such amount
or furnish such bond in accordance with this
section, and
‘‘(B) a district director or assistant district
director of the Internal Revenue Service person-
ally approves (in writing) the sale of the prop-
erty (or the owner waives such approval in writ-
ing),
the Secretary shall as soon as practicable make pub-
lic sale of the property in accordance with such regu-
lations as may be prescribed by the Secretary.’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to taxes assessed after the date
of the enactment of this Act.
SEC. 108. INCREASE IN AMOUNT OF CERTAIN PROPERTY
ON WHICH LIEN NOT VALID.
(a) CERTAIN PROPERTY.—
(1) IN
GENERAL.—Subsection (b) of section
6323 (relating to validity and priority against cer-
tain persons) is amended—
(A) by striking ‘‘$250’’ in paragraph (4)
(relating to personal property purchased in cas-
ual sale) and inserting ‘‘$1,000’’, and
(B) by striking ‘‘$1,000’’ in paragraph (7)
(relating to residential property subject to a
mechanic’s lien for certain repairs and improve-
ments) and inserting ‘‘$5,000’’.
(2) INFLATION
ADJUSTMENT.—Subsection (i)
of section 6323 (relating to special rules) is amended
by adding at the end the following new paragraph:
‘‘(4) COST-OF-LIVING
ADJUSTMENT.—In the
case of notices of liens imposed by section 6321
which are filed in any calendar year after 1998, each
of the dollar amounts under paragraph (4) or (7) of
subsection (b) shall be increased by an amount equal
to—
‘‘(A) such dollar amount, multiplied by
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar
year, determined by substituting ‘calendar year
1996’ for ‘calendar year 1992’ in subparagraph
(B) thereof.
If any amount as adjusted under the preceding sen-
tence is not a multiple of $10, such amount shall be
rounded to the nearest multiple of $10.’’.
(b) EXPANSION
OF
TREATMENT
OF
PASSBOOK
LOANS.—Paragraph (10) of section 6323(b) is amend-
ed—
(1) by striking ‘‘PASSBOOK
LOANS’’ in the
heading and inserting ‘‘DEPOSIT-SECURED LOANS’’,
(2) by striking ‘‘, evidenced by a passbook,’’,
and
(3) by striking all that follows ‘‘secured by such
account’’ and inserting a period.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on the date of the enactment
of this Act.
TITLE II—APPLICATION OF CER-
TAIN FAIR DEBT COLLECTION
PROCEDURES
SEC. 201. APPLICATION OF CERTAIN FAIR DEBT COLLEC-
TION PROCEDURES.
(a) IN GENERAL.—Subchapter A of chapter 64 (re-
lating to collection) is amended by inserting after section
6303 the following new section:
‘‘SEC. 6304. FAIR TAX COLLECTION PRACTICES.
‘‘(a) COMMUNICATION WITH THE TAXPAYER.—With-
out the prior consent of the taxpayer given directly to the
Secretary or the express permission of a court of com-
petent jurisdiction, the Secretary may not communicate
with a taxpayer in connection with the collection of any
unpaid tax—
‘‘(1) at any unusual time or place or a time or
place known or which should be known to be incon-
venient to the taxpayer;
‘‘(2) if the Secretary knows the taxpayer is rep-
resented by any person authorized to practice before
the Internal Revenue Service with respect to such
unpaid tax and has knowledge of, or can readily as-
certain, such person’s name and address, unless
such person fails to respond within a reasonable pe-
riod of time to a communication from the Secretary
or unless such person consents to direct communica-
tion with the taxpayer; or
‘‘(3) at the taxpayer’s place of employment if
the Secretary knows or has reason to know that the
taxpayer’s employer prohibits the taxpayer from re-
ceiving such communication.
In the absence of knowledge of circumstances to the con-
trary, the Secretary shall assume that the convenient time
for communicating with a taxpayer is after 8 a.m. and
before 9 p.m., local time at the taxpayer’s location.
‘‘(b) PROHIBITION OF HARASSMENT AND ABUSE.—
The Secretary may not engage in any conduct the natural
consequence of which is to harass, oppress, or abuse any
person in connection with the collection of any unpaid tax.
Without limiting the general application of the foregoing,
the following conduct is a violation of this subsection:
‘‘(1) The use or threat of use of violence or
other criminal means to harm the physical person,
reputation, or property of any person.
‘‘(2) The use of obscene or profane language or
language the natural consequence of which is to
abuse the hearer or reader.
‘‘(3) Causing a telephone to ring or engaging
any person in telephone conversation repeatedly or
continuously with intent to annoy, abuse, or harass
any person at the called number.
‘‘(4) Except as provided under rules similar to
the rules in section 804 of the Fair Debt Collection
Practices Act (15 U.S.C. 1692b), the placement of
telephone calls without meaningful disclosure of the
caller’s identity.
‘‘(c) CIVIL ACTION FOR VIOLATIONS OF SECTION.—
‘‘For civil action for violations of this section, see
section 7433.’’.
(b) CLERICAL AMENDMENT.—The table of sections
for subchapter A of chapter 64 is amended by inserting
after the item relating to section 6303 the following new
item:
‘‘Sec. 6304. Fair tax collection practices.’’.