(5) Subsection (g) of section 7609 is amended
by striking ‘‘In the case of any summons described
in subsection (c), the provisions of subsections (a)(1)
and (b) shall not apply if’’ and inserting ‘‘A sum-
mons is described in this subsection if’’.
(6)(A) Subsection (i) of section 7609 is amend-
ed by striking ‘‘THIRD-PARTY
RECORDKEEPER
AND’’ in the subsection heading.
(B) Paragraph (1) of section 7609(i) is amend-
ed by striking ‘‘described in subsection (c), the
third-party recordkeeper’’ and inserting ‘‘to which
this section applies for the production of records, the
summoned party’’.
(C) Paragraph (2) of such section is amend-
ed—
(i) by striking ‘‘RECORDKEEPER’’ in the
heading and inserting ‘‘SUMMONED
PARTY’’,
and
(ii) by striking ‘‘the third-party record-
keeper’’ and inserting ‘‘the summoned party’’.
(D) Paragraph (3) of such section is amended
to read as follows:
‘‘(3) PROTECTION FOR SUMMONED PARTY WHO
DISCLOSES.—Any summoned party, or agent or em-
ployee thereof, making a disclosure of records or tes-
timony pursuant to this section in good faith reli-
ance on the certificate of the Secretary or an order
of a court requiring production of records or the giv-
ing of such testimony shall not be liable to any cus-
tomer or other person for such disclosure.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to summonses served after the date
of the enactment of this Act.
SEC. 402. CIVIL ACTION FOR RELEASE OF ERRONEOUS
LIEN.
(a) RIGHT
OF SUBSTITUTION
OF VALUE.—Sub-
section (b) of section 6325 (relating to release of lien or
discharge of property) is amended by adding at the end
the following new paragraph:
‘‘(4) RIGHT OF SUBSTITUTION OF VALUE.—
‘‘(A) IN GENERAL.—At the request of the
owner of any property subject to any lien im-
posed by this chapter, the Secretary shall issue
a certificate of discharge of such property if
such owner—
‘‘(i) deposits with the Secretary an
amount of money equal to the value of the
interest of the United States (as deter-
mined by the Secretary) in the property, or
‘‘(ii) furnishes a bond acceptable to
the Secretary in a like amount.
‘‘(B) REFUND OF DEPOSIT WITH INTER-
EST AND RELEASE OF BOND.—The Secretary
shall refund the amount so deposited (and shall
pay interest at the overpayment rate under sec-
tion 6621), and shall release such bond, to the
extent that the Secretary determines that—
‘‘(i) the unsatisfied liability giving rise
to the lien can be satisfied from a source
other than such property, or
‘‘(ii) the value of the interest of the
United States in the property is less than
the Secretary’s prior determination of such
value.
‘‘(C) USE OF DEPOSIT, ETC., IF ACTION TO
CONTEST
LIEN
NOT
FILED.—If no action is
filed under section 7426(a)(4) within the period
prescribed therefor, the Secretary shall, within
60 days after the expiration of such period—
‘‘(i) apply the amount deposited, or
collect on such bond, to the extent nec-
essary to satisfy the unsatisfied liability se-
cured by the lien, and
‘‘(ii) refund (with interest as de-
scribed in subparagraph (B)) any portion
of the amount deposited which is not used
to satisfy such liability.
‘‘(D) 
EXCEPTION.—Subparagraph 
(A)
shall not apply if the owner of the property is
the person whose unsatisfied liability gave rise
to the lien.’’.
(b) CIVIL ACTION TO RELEASE ERRONEOUS LIEN.—
(1) IN
GENERAL.—Subsection (a) of section
7426 (relating to civil actions by persons other than
taxpayers) is amended by adding at the end the fol-
lowing new paragraph:
‘‘(4) SUBSTITUTION OF VALUE.—If a certificate
of discharge is issued to any person under section
6325(b)(4) with respect to any property, such per-
son may, within 120 days after the day on which
such certificate is issued, bring a civil action against
the United States in a district court of the United
States for a determination of whether the value of
the interest of the United States (if any) in such
property is less than the value determined by the
Secretary. No other action may be brought by such
person for such a determination.’’.
(2) FORM OF RELIEF.—
(A) IN GENERAL.—Subsection (b) of sec-
tion 7426 is amended by adding at the end the
following new paragraph:
‘‘(5) SUBSTITUTION OF VALUE.—If the court
determines that the Secretary’s determination of the
value of the interest of the United States in the
property for purposes of section 6325(b)(4) exceeds
the actual value of such interest, the court shall
grant a judgment ordering a refund of the amount
deposited, and a release of the bond, to the extent
that the aggregate of the amounts thereof exceeds
such value determined by the court.’’.
(B) INTEREST ALLOWED ON REFUND OF
DEPOSIT.—Subsection (g) of section 7426 is
amended by striking ‘‘and’’ at the end of para-
graph (1), by striking the period at the end of
paragraph (2) and inserting ‘‘; and’’, and by
adding at the end the following new paragraph:
‘‘(3) in the case of a judgment pursuant to sub-
section (b)(5) which orders a refund of any amount,
from the date the Secretary received such amount to
the date of payment of such judgment.’’.
(3) SUSPENSION OF RUNNING OF STATUTE OF
LIMITATION.—Subsection (f) of section 6503 is
amended to read as follows:
‘‘(f) WRONGFUL SEIZURE OF OR LEVY ON PROPERTY
OF THIRD PARTY.—
‘‘(1) WRONGFUL SEIZURE.—The running of the
period under section 6502 shall be suspended for a
period equal to the period from the date property
(including money) of a third party is wrongfully
seized or received by the Secretary to the date the
Secretary returns property pursuant to section
6343(b) or the date on which a judgment secured
pursuant to section 7426 with respect to such prop-
erty becomes final, and for 30 days thereafter. The
running of such period shall be suspended under this
paragraph only with respect to the amount of such
assessment equal to the amount of money or the
value of specific property returned.
‘‘(2) WRONGFUL LEVY.—In the case of any as-
sessment for which a lien was made on any property,
the running of the period under section 6502 shall
be suspended for a period equal to the period begin-
ning on the date any person becomes entitled to a
certificate under section 6325(b)(4) with respect to
such property and ending on the date which is 30
days after the earlier of—
‘‘(A) the earliest date on which the Sec-
retary no longer holds any amount as a deposit
or bond provided under section 6325(b)(4) by
reason of such deposit or bond being used to
satisfy the unpaid tax or being refunded or re-
leased, or
‘‘(B) the date that the judgment secured
under section 7426(a)(4) becomes final.
The running of such period shall be suspended
under this paragraph only with respect to the
amount of such assessment equal to the value of the
interest of the United States in the property plus in-
terest, penalties, additions to the tax, and additional
amounts attributable thereto.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on the date of the enactment
of this Act.
SEC. 403. CIVIL DAMAGES FOR IRS VIOLATIONS OF BANK-
RUPTCY PROCEDURES.
(a) IN GENERAL.—Section 7433 (relating to civil
damages for certain unauthorized collection actions) is
amended by adding at the end the following new sub-
section:
‘‘(e) ACTIONS FOR VIOLATIONS OF CERTAIN BANK-
RUPTCY PROCEDURES.—
‘‘(1) IN GENERAL.—If, in connection with any
collection of Federal tax with respect to a taxpayer,
any officer or employee of the Internal Revenue
Service willfully disregards any provision of section
362 (relating to automatic stay) or 524 (relating to
effect of discharge) of title 11, United States Code,
or any regulation promulgated under such section,
such taxpayer may petition the bankruptcy court to
recover damages against the United States.
‘‘(2) REMEDY TO BE EXCLUSIVE.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), notwithstanding section 105
of such title 11, such petition shall be the exclu-
sive remedy for recovering damages resulting
from such actions.
‘‘(B) CERTAIN
OTHER
ACTIONS
PER-
MITTED.—Subparagraph (A) shall not apply to
an action under section 362(h) of such title 11
for a violation of a stay provided by section 362
of such title; except that—
‘‘(i) administrative and litigation costs
in connection with such an action may only
be awarded only under section 7430, and
‘‘(ii) administrative costs may be
awarded only if incurred on or after the
date that the bankruptcy petition is filed.’’
(b) CONFORMING AMENDMENT.—Subsection (b) of
section 7433 is amended by inserting ‘‘or petition filed
under subsection (e)’’ after ‘‘subsection (a)’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to actions by officers or employees
of the Internal Revenue Service after the date of the en-
actment of this Act.
TITLE V—MISCELLANEOUS
CHANGES
SEC. 501. PERSONAL DELIVERY OF NOTICE OF PENALTY
UNDER SECTION 6672.
(a) IN GENERAL.—Paragraph (1) of section 6672(b)
(relating to failure to collect and pay over tax, or attempt
to evade or defeat tax) is amended by inserting ‘‘or in per-
son’’ after ‘‘section 6212(b)’’.
(b) CONFORMING AMENDMENTS.—
(1) Paragraph (2) of section 6672(b) is amend-
ed by inserting ‘‘(or, in the case of such a notice de-
livered in person, such delivery)’’ after ‘‘paragraph
(1)’’.
(2) Paragraph (3) of section 6672(b) is amend-
ed by inserting ‘‘or delivered in person’’ after
‘‘mailed’’ each place it appears.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on the date of the enactment
of this Act.
SEC. 502. SERVICE OF SUMMONSES TO THIRD-PARTY REC-
ORDKEEPERS PERMITTED BY MAIL.
(a) IN GENERAL.—Section 7603 (relating to service
of summons) is amended by striking ‘‘A summons issued’’
and inserting ‘‘(a) IN GENERAL.—A summons issued’’
and by adding at the end the following new subsection:
‘‘(b) SERVICE BY MAIL TO THIRD-PARTY RECORD-
KEEPERS.—
‘‘(1) IN GENERAL.—A summons referred to in
subsection (a) for the production of books, papers,
records, or other data by a third-party recordkeeper
may also be served by certified or registered mail to
the last known address of such recordkeeper.
‘‘(2) THIRD-PARTY RECORDKEEPER.—For pur-
poses of paragraph (1), the term ‘third-party record-
keeper’ means—
‘‘(A) any mutual savings bank, cooperative
bank, domestic building and loan association, or
other savings institution chartered and super-
vised as a savings and loan or similar associa-
tion under Federal or State law, any bank (as
defined in section 581), or any credit union
(within the meaning of section 501(c)(14)(A));
‘‘(B) any consumer reporting agency (as
defined under section 603(f) of the Fair Credit
Reporting Act (15 U.S.C. 1681a(f)));
‘‘(C) any person extending credit through
the use of credit cards or similar devices;
‘‘(D) any broker (as defined in section
3(a)(4) of the Securities Exchange Act of 1934
(15 U.S.C. 78c(a)(4)));
‘‘(E) any attorney;
‘‘(F) any accountant;
‘‘(G) any barter exchange (as defined in
section 6045(c)(3));
‘‘(H) any regulated investment company
(as defined in section 851) and any agent of
such regulated investment company when acting
as an agent thereof, and
‘‘(I) any enrolled agent.’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to summonses served after the date
of the enactment of this Act.