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(B) FAILURE TO FURNISH NOTICE.—Para-
graph (2) of section 1445(d) (relating to failure 
to furnish notice) is amended to read as follows: 
‘‘(2) FAILURE TO FURNISH NOTICE.— 
‘‘(A) IN
GENERAL.—If any transferor’s 
agent, transferee’s agent, or qualified substitute 
is required by paragraph (1) to furnish notice, 
but fails to furnish such notice at such time or 
times and in such manner as may be required 
by regulations, such agent or substitute shall 
have the same duty to deduct and withhold that 
the transferee would have had if such agent or 
substitute had complied with paragraph (1). 
‘‘(B) LIABILITY LIMITED TO AMOUNT OF 
COMPENSATION.—An agent’s or substitute’s li-
ability under subparagraph (A) shall be limited 
to the amount of compensation the agent or 
substitute derives from the transaction.’’. 
(C) 
CONFORMING
AMENDMENT.—The 
heading for section 1445(d) is amended by 
striking ‘‘OR TRANSFEREE’S AGENTS’’ and in-
serting ‘‘, TRANSFEREE’S AGENTS, OR QUALI-
FIED SUBSTITUTES’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to dispositions of United States 
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real property interests after the date of the enactment of 
this Act. 
SEC. 11. DISCLOSURE OF PRISONER RETURN INFORMA-
TION TO FEDERAL BUREAU OF PRISONS. 
(a) IN GENERAL.—Subsection (k) of section 6103 
(relating to disclosure of certain return and return infor-
mation for tax administration purposes) is amended by 
adding at the end the following new paragraph: 
‘‘(10) DISCLOSURE
OF
CERTAIN
RETURN
IN-
FORMATION OF PRISONERS TO FEDERAL BUREAU OF 
PRISONS.— 
‘‘(A) IN
GENERAL.—Under such proce-
dures as the Secretary may prescribe, the Sec-
retary may disclose to the head of the Federal 
Bureau of Prisons any return information with 
respect to individuals incarcerated in Federal 
prison whom the Secretary has determined may 
have filed or facilitated the filing of a false re-
turn to the extent that the Secretary deter-
mines that such disclosure is necessary to per-
mit effective Federal tax administration. 
‘‘(B) RESTRICTION ON REDISCLOSURE.— 
Notwithstanding subsection (n), the head of the 
Federal Bureau of Prisons may not disclose any 
information obtained under subparagraph (A) 
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to any person other than an officer or employee 
of such Bureau. 
‘‘(C) RESTRICTION ON USE OF DISCLOSED 
INFORMATION.—Return information received 
under this paragraph shall be used only for 
purposes of and to the extent necessary in tak-
ing administrative action to prevent the filing of 
false and fraudulent returns, including adminis-
trative actions to address possible violations of 
administrative rules and regulations of the pris-
on facility. 
‘‘(D) ANNUAL
REPORT.—In each of the 
calendar years 2007 through 2010, the Sec-
retary shall submit to Congress and make pub-
licly available a report on the filing of false and 
fraudulent returns by individuals incarcerated 
in Federal and State prisons. Such report shall 
include statistics on the number of false and 
fraudulent returns associated with each Federal 
and State prison. 
‘‘(E) TERMINATION.—No disclosure may 
be made under this paragraph after December 
31, 2010.’’. 
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(b) RECORDKEEPING.—Paragraph (4) of section 
6103(p) is amended by striking ‘‘(k)(8)’’ both places it 
appears and inserting ‘‘(k)(8) or (10)’’. 
(c) EVALUATION
BY TREASURY INSPECTOR GEN-
ERAL FOR TAX ADMINISTRATION.—Paragraph (3) of sec-
tion 7803(d) is amended by striking ‘‘and’’ at the end of 
subparagraph (A), by striking the period at the end of 
subparagraph (B) and inserting ‘‘; and’’, and by adding 
at the end the following new subparagraph: 
‘‘(C) not later than December 31, 2009, 
submit a written report to Congress on the im-
plementation of section 6103(k)(10).’’. 
(d) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section 
shall apply to disclosures made after December 31, 
2007. 
(2) ANNUAL REPORT.—Section 6103(k)(10)(D) 
of the Internal Revenue Code of 1986 (relating to 
annual reports), as added by this section, shall apply 
to reports submitted after the date of the enactment 
of this Act. 
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SEC. 12. INCREASE IN PENALTY FOR BAD CHECKS AND 
MONEY ORDERS. 
(a) IN GENERAL.—Section 6657 (relating to bad 
checks) is amended— 
(1) by striking ‘‘$750’’ and inserting ‘‘$1,250’’, 
and 
(2) by striking ‘‘$15’’ and inserting ‘‘$25’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to checks or money orders received 
after the date of the enactment of this Act. 
Passed the House of Representatives April 17, 2007. 
Attest: 
LORRAINE C. MILLER, 
Clerk. 
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