838 
‘‘(I) is treated for purposes of 
this paragraph as a qualified ap-
praisal under regulations or other 
guidance prescribed by the Secretary, 
and 
‘‘(II) is conducted by a qualified 
appraiser in accordance with generally 
accepted appraisal standards and any 
regulations or other guidance pre-
scribed under subclause (I). 
‘‘(ii) QUALIFIED APPRAISER.—Except 
as provided in clause (iii), the term ‘quali-
fied appraiser’ means an individual who— 
‘‘(I) has earned an appraisal des-
ignation from a recognized profes-
sional appraiser organization or has 
otherwise met minimum education 
and experience requirements set forth 
in regulations prescribed by the Sec-
retary, 
‘‘(II) regularly performs apprais-
als for which the individual receives 
compensation, and 
‘‘(III) meets such other require-
ments as may be prescribed by the 
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ccoleman on PROD1PC71 with BILLS
839 
Secretary in regulations or other guid-
ance. 
‘‘(iii) SPECIFIC APPRAISALS.—An in-
dividual shall not be treated as a qualified 
appraiser with respect to any specific ap-
praisal unless— 
‘‘(I) the individual demonstrates 
verifiable education and experience in 
valuing the type of property subject to 
the appraisal, and 
‘‘(II) the individual has not been 
prohibited from practicing before the 
Internal Revenue Service by the Sec-
retary under section 330(c) of title 
31, United States Code, at any time 
during the 3-year period ending on 
the date of the appraisal.’’. 
(2) REASONABLE
CAUSE
EXCEPTION.—Sub-
paragraphs (B) and (C) of section 6664(c)(3) are 
amended to read as follows: 
‘‘(B) QUALIFIED
APPRAISAL.—The term 
‘qualified appraisal’ has the meaning given such 
term by section 170(f)(11)(E)(i). 
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ccoleman on PROD1PC71 with BILLS
840 
‘‘(C) QUALIFIED
APPRAISER.—The term 
‘qualified appraiser’ has the meaning given such 
term by section 170(f)(11)(E)(ii).’’. 
(d) DISCIPLINARY ACTIONS AGAINST APPRAISERS.— 
Section 330(c) of title 31, United States Code, is amended 
by striking ‘‘with respect to whom a penalty has been as-
sessed under section 6701(a) of the Internal Revenue 
Code of 1986’’. 
(e) EFFECTIVE DATES.— 
(1) MISSTATEMENT
PENALTIES.—Except as 
provided in paragraph (3), the amendments made by 
subsection (a) shall apply to returns filed after the 
date of the enactment of this Act. 
(2) APPRAISER
PROVISIONS.—Except as pro-
vided in paragraph (3), the amendments made by 
subsections (b), (c), and (d) shall apply to appraisals 
prepared with respect to returns or submissions filed 
after the date of the enactment of this Act. 
(3) 
SPECIAL
RULE
FOR
CERTAIN
EASE-
MENTS.—In the case of a contribution of a qualified 
real property interest which is a restriction with re-
spect to the exterior of a building described in sec-
tion 170(h)(4)(C)(ii) of the Internal Revenue Code 
of 1986, and an appraisal with respect to the con-
tribution, the amendments made by subsections (a) 
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and (b) shall apply to returns filed after July 25, 
2006. 
SEC. 1220. ADDITIONAL STANDARDS FOR CREDIT COUN-
SELING ORGANIZATIONS. 
(a) IN GENERAL.—Section 501 (relating to exemp-
tion from tax on corporations, certain trusts, etc.) is 
amended by redesignating subsection (q) as subsection (r) 
and by inserting after subsection (p) the following new 
subsection: 
‘‘(q) SPECIAL RULES FOR CREDIT COUNSELING OR-
GANIZATIONS.— 
‘‘(1) IN GENERAL.—An organization with re-
spect to which the provision of credit counseling 
services is a substantial purpose shall not be exempt 
from tax under subsection (a) unless such organiza-
tion is described in paragraph (3) or (4) of sub-
section (c) and such organization is organized and 
operated in accordance with the following require-
ments: 
‘‘(A) The organization— 
‘‘(i) provides credit counseling services 
tailored to the specific needs and cir-
cumstances of consumers, 
‘‘(ii) makes no loans to debtors (other 
than loans with no fees or interest) and 
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842 
does not negotiate the making of loans on 
behalf of debtors, 
‘‘(iii) provides services for the purpose 
of improving a consumer’s credit record, 
credit history, or credit rating only to the 
extent that such services are incidental to 
providing credit counseling services, and 
‘‘(iv) does not charge any separately 
stated fee for services for the purpose of 
improving any consumer’s credit record, 
credit history, or credit rating. 
‘‘(B) The organization does not refuse to 
provide credit counseling services to a consumer 
due to the inability of the consumer to pay, the 
ineligibility of the consumer for debt manage-
ment plan enrollment, or the unwillingness of 
the consumer to enroll in a debt management 
plan. 
‘‘(C) The organization establishes and im-
plements a fee policy which— 
‘‘(i) requires that any fees charged to 
a consumer for services are reasonable, 
‘‘(ii) allows for the waiver of fees if 
the consumer is unable to pay, and 
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843 
‘‘(iii) except to the extent allowed by 
State law, prohibits charging any fee based 
in whole or in part on a percentage of the 
consumer’s debt, the consumer’s payments 
to be made pursuant to a debt manage-
ment plan, or the projected or actual sav-
ings to the consumer resulting from enroll-
ing in a debt management plan. 
‘‘(D) At all times the organization has a 
board of directors or other governing body— 
‘‘(i) which is controlled by persons 
who represent the broad interests of the 
public, such as public officials acting in 
their capacities as such, persons having 
special knowledge or expertise in credit or 
financial education, and community lead-
ers, 
‘‘(ii) not more than 20 percent of the 
voting power of which is vested in persons 
who are employed by the organization or 
who will benefit financially, directly or in-
directly, from the organization’s activities 
(other than through the receipt of reason-
able directors’ fees or the repayment of 
consumer debt to creditors other than the 
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