shall not provide a debt indicator to any person 
with respect to any refund anticipation loan if 
the Secretary determines that the business 
practices of such person involve refund anticipa-
tion loans and related charges and fees that are 
predatory. 
‘‘(B) REFUND ANTICIPATION LOAN.—For 
purposes of this paragraph, the term ‘refund 
anticipation loan’ means a loan of money or of 
any other thing of value to a taxpayer secured 
by the taxpayer’s anticipated receipt of a Fed-
eral tax refund. 
‘‘(C) IRS DEBT INDICATOR.—For purposes 
of this paragraph, the term ‘debt indicator’ 
means a notification provided through a tax re-
turn’s acknowledgment file that a refund will be 
offset to repay debts for delinquent Federal or 
State taxes, student loans, child support, or 
other Federal agency debt.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect on the date of the enactment 
of this Act. 
SEC. 10. STUDY ON DELIVERY OF TAX REFUNDS. 
(a) IN GENERAL.—The Secretary of the Treasury, in 
consultation with the National Taxpayer Advocate, shall 
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conduct a study on the feasibility of delivering tax refunds 
on debit cards, prepaid cards, and other electronic means 
to assist individuals that do not have access to financial 
accounts or institutions. 
(b) REPORT.—Not later than 1 year after the date 
of the enactment of this Act, the Secretary of the Treasury 
shall submit a report to Congress containing the results 
of the study conducted under subsection (a). 
SEC. 11. EXTENSION OF TIME FOR RETURN OF PROPERTY 
FOR WRONGFUL LEVY. 
(a) EXTENSION OF TIME FOR RETURN OF PROPERTY 
SUBJECT TO LEVY.—Subsection (b) of section 6343 (re-
lating to return of property) is amended by striking ‘‘9 
months’’ and inserting ‘‘2 years’’. 
(b) PERIOD OF LIMITATION ON SUITS.—Subsection 
(c) of section 6532 (relating to suits by persons other than 
taxpayers) is amended— 
(1) in paragraph (1) by striking ‘‘9 months’’ 
and inserting ‘‘2 years’’, and 
(2) in paragraph (2) by striking ‘‘9-month’’ and 
inserting ‘‘2-year’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to— 
(1) levies made after the date of the enactment 
of this Act, and 
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(2) levies made on or before such date if the 9- 
month period has not expired under section 6343(b) 
of the Internal Revenue Code of 1986 (without re-
gard to this section) as of such date. 
SEC. 12. INDIVIDUALS HELD HARMLESS ON WRONGFUL 
LEVY, ETC., ON INDIVIDUAL RETIREMENT 
PLAN. 
(a) IN GENERAL.—Section 6343 (relating to author-
ity to release levy and return property) is amended by add-
ing at the end the following new subsection: 
‘‘(f) INDIVIDUALS HELD HARMLESS ON WRONGFUL 
LEVY, ETC. ON INDIVIDUAL RETIREMENT PLAN.— 
‘‘(1) IN GENERAL.—If the Secretary determines 
that an individual retirement plan has been levied 
upon in a case to which subsection (b) or (d)(2)(A) 
applies, an amount equal to the sum of— 
‘‘(A) the amount of money returned by the 
Secretary on account of such levy, and 
‘‘(B) interest paid under subsection (c) on 
such amount of money, 
may be deposited into such individual retirement 
plan or any other individual retirement plan (other 
than an endowment contract) to which a rollover 
from the plan levied upon is permitted. An amount 
may not be deposited into a Roth IRA under the 
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preceding sentence unless the individual retirement 
plan levied upon was a Roth IRA at the time of such 
levy. 
‘‘(2) TREATMENT AS ROLLOVER.—If amounts 
are deposited into an individual retirement plan 
under paragraph (1) not later than the 60th day 
after the date on which the individual receives the 
amounts under paragraph (1)— 
‘‘(A) such deposit shall be treated as a 
rollover described in section 408(d)(3)(A)(i), 
‘‘(B) to the extent the deposit includes in-
terest paid under subsection (c), such interest 
shall not be includible in gross income, and 
‘‘(C) such deposit shall not be taken into 
account under section 408(d)(3)(B). 
For purposes of subparagraph (B), an amount shall 
be treated as interest only to the extent that the 
amount deposited exceeds the amount of the levy. 
‘‘(3) REFUND, ETC., OF
INCOME
TAX
ON 
LEVY.—If any amount is includible in gross income 
for a taxable year by reason of a levy referred to in 
paragraph (1) and any portion of such amount is 
treated as a rollover under paragraph (2), any tax 
imposed by chapter 1 on such portion shall not be 
assessed, and if assessed shall be abated, and if col-
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lected shall be credited or refunded as an overpay-
ment made on the due date for filing the return of 
tax for such taxable year. 
‘‘(4) INTEREST.—Notwithstanding subsection 
(d), interest shall be allowed under subsection (c) in 
a case in which the Secretary makes a determination 
described in subsection (d)(2)(A) with respect to a 
levy upon an individual retirement plan.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to amounts paid under subsections 
(b), (c), and (d)(2)(A) of section 6343 of the Internal Rev-
enue Code of 1986 after the date of the enactment of this 
Act. 
SEC. 13. TAXPAYER NOTIFICATION OF SUSPECTED IDEN-
TITY THEFT. 
(a) IN GENERAL.—Chapter 77 (relating to miscella-
neous provisions) is amended by adding at the end the 
following new section: 
‘‘SEC. 
7529. 
NOTIFICATION 
OF 
SUSPECTED 
IDENTITY 
THEFT. 
‘‘If, in the course of an investigation under the inter-
nal revenue laws, the Secretary determines that there was 
or may have been an unauthorized use of the identity of 
the taxpayer or a dependent of the taxpayer, the Secretary 
shall, to the extent permitted by law— 
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‘‘(1) as soon as practicable and without jeop-
ardizing such investigation, notify the taxpayer of 
such determination, and 
‘‘(2) if any person is criminally charged by in-
dictment or information with respect to such unau-
thorized use, notify such taxpayer as soon as prac-
ticable of such charge.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for chapter 77 is amended by adding at the end the fol-
lowing new item: 
‘‘Sec. 7529. Notification of suspected identity theft.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to determinations made after the 
date of the enactment of this Act. 
SEC. 14. REPEAL OF AUTHORITY TO ENTER INTO PRIVATE 
DEBT COLLECTION CONTRACTS. 
(a) IN GENERAL.—Subchapter A of chapter 64 is 
amended by striking section 6306. 
(b) CONFORMING AMENDMENTS.— 
(1) Subchapter B of chapter 76 is amended by 
striking section 7433A. 
(2) Section 7811 is amended by striking sub-
section (g). 
(3) Section 1203 of the Internal Revenue Serv-
ice Restructuring Act of 1998 is amended by strik-
ing subsection (e). 
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(4) The table of sections for subchapter A of 
chapter 64 is amended by striking the item relating 
to section 6306. 
(5) The table of sections for subchapter B of 
chapter 76 is amended by striking the item relating 
to section 7433A. 
(c) EFFECTIVE DATE.— 
(1) IN
GENERAL.—Except as otherwise pro-
vided in this subsection, the amendments made by 
this section shall take effect on the date of the en-
actment of this Act. 
(2) EXCEPTION
FOR
EXISTING
CONTRACTS, 
ETC.—The amendments made by this section shall 
not apply to any contract which was entered into be-
fore July 18, 2007, and is not renewed or extended 
on or after March 1, 2008. 
(3) UNAUTHORIZED CONTRACTS AND EXTEN-
SIONS TREATED AS VOID.—Any qualified tax collec-
tion contract (as defined in section 6306 of the In-
ternal Revenue Code of 1986, as in effect before its 
repeal) which is entered into on or after July 18, 
2007, and any extension or renewal on or after 
March 1, 2008, of any qualified tax collection con-
tract (as so defined) shall be void. 
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SEC. 15. CLARIFICATION OF IRS UNCLAIMED REFUND AU-
THORITY. 
Paragraph (1) of section 6103(m) (relating to tax re-
funds) is amended by inserting ‘‘, and through any other 
means of mass communication,’’ after ‘‘media’’. 
SEC. 16. PROHIBITION ON MISUSE OF DEPARTMENT OF 
THE TREASURY NAMES AND SYMBOLS. 
(a) IN GENERAL.—Subsection (a) of section 333 of 
title 31, United States Code, is amended by inserting 
‘‘Internet domain address,’’ after ‘‘solicitation,’’ both 
places it appears. 
(b) 
PENALTY
FOR
MISUSE
BY
ELECTRONIC 
MEANS.—Subsections (c)(2) and (d)(1) of section 333 of 
such Code are each amended by inserting ‘‘or any other 
mass communications by electronic means,’’ after ‘‘tele-
cast,’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to violations occurring 
after the date of the enactment of this Act. 
SEC. 17. SUBSTANTIATION OF AMOUNTS PAID OR DISTRIB-
UTED OUT OF HEALTH SAVINGS ACCOUNT. 
(a) IN GENERAL.—Paragraph (1) of section 223(f) 
(relating to amounts used for qualified medical expenses) 
is amended by inserting ‘‘(and substantiated in a manner 
similar to the substantiation required for flexible spending 
arrangements)’’ after ‘‘account beneficiary’’. 
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(b) REPORTS.—Subsection (h) of section 223 (relat-
ing to reports) is amended— 
(1) by redesignating paragraphs (1) and (2) as 
subparagraphs (A) and (B), respectively, 
(2) by moving the text of subparagraphs (A) 
and (B) (as so redesignated) and the last sentence 
2 ems to the right, 
(3) by striking ‘‘(h) REPORTS.—The Secretary 
may require—’’ and inserting the following: 
‘‘(h) REPORTS.— 
‘‘(1) IN
GENERAL.—The Secretary may re-
quire—’’, and 
(4) by adding at the end the following new 
paragraph: 
‘‘(2) RELATING
TO
SUBSTANTIATION.—Not 
later than January 15 of each calendar year, the 
trustee of a health savings account shall make a re-
port regarding such account to the Secretary and 
the account beneficiary setting forth— 
‘‘(A) the name, address, and identifying 
number of the account beneficiary, and 
‘‘(B) the amount paid or distributed out of 
such account for the preceding calendar year 
not substantiated in accordance with subsection 
(f)(1).’’. 
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(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to amounts paid or 
distributed out of health savings accounts after December 
31, 2008. 
SEC. 18. INCREASE IN INFORMATION RETURN PENALTIES. 
(a) FAILURE TO FILE CORRECT INFORMATION RE-
TURNS.— 
(1) 
IN
GENERAL.—Subsections 
(a)(1), 
(b)(1)(A), and (b)(2)(A) of section 6721 are each 
amended by striking ‘‘$50’’ and inserting ‘‘$100’’. 
(2) AGGREGATE
ANNUAL
LIMITATION.—Sub-
sections (a)(1), (d)(1)(A), and (e)(3)(A) of section 
6721 are each amended by striking ‘‘$250,000’’ and 
inserting ‘‘$1,500,000’’. 
(b) REDUCTION WHERE CORRECTION WITHIN 30 
DAYS.— 
(1) IN GENERAL.—Subparagraph (A) of section 
6721(b)(1) is amended by striking ‘‘$15’’ and insert-
ing ‘‘$25’’. 
(2) AGGREGATE
ANNUAL
LIMITATION.—Sub-
sections (b)(1)(B) and (d)(1)(B) of section 6721 are 
each amended by striking ‘‘$75,000’’ and inserting 
‘‘$250,000’’. 
(c) REDUCTION WHERE CORRECTION ON OR BEFORE 
AUGUST 1.— 
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(1) IN GENERAL.—Subparagraph (A) of section 
6721(b)(2) is amended by striking ‘‘$30’’ and insert-
ing ‘‘$60’’. 
(2) AGGREGATE
ANNUAL
LIMITATION.—Sub-
sections (b)(2)(B) and (d)(1)(C) of section 6721 are 
each amended by striking ‘‘$150,000’’ and inserting 
‘‘$500,000’’. 
(d) AGGREGATE ANNUAL LIMITATIONS FOR PER-
SONS WITH GROSS RECEIPTS
OF NOT MORE THAN 
$5,000,000.—Paragraph (1) of section 6721(d) is amend-
ed— 
(1) by striking ‘‘$100,000’’ in subparagraph 
(A) and inserting ‘‘$500,000’’, 
(2) by striking ‘‘$25,000’’ in subparagraph (B) 
and inserting ‘‘$75,000’’, and 
(3) by striking ‘‘$50,000’’ in subparagraph (C) 
and inserting ‘‘$200,000’’. 
(e) PENALTY
IN
CASE
OF
INTENTIONAL
DIS-
REGARD.—Paragraph (2) of section 6721(e) is amended 
by striking ‘‘$100’’ and inserting ‘‘$250’’. 
(f) FAILURE TO FURNISH CORRECT PAYEE STATE-
MENTS.— 
(1) IN
GENERAL.—Subsection (a) of section 
6722 is amended by striking ‘‘$50’’ and inserting 
‘‘$100’’. 
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(2) AGGREGATE
ANNUAL
LIMITATION.—Sub-
sections (a) and (c)(2)(A) of section 6722 are each 
amended by striking ‘‘$100,000’’ and inserting 
‘‘$1,500,000’’. 
(3) PENALTY IN CASE OF INTENTIONAL DIS-
REGARD.—Paragraph (1) of section 6722(c) is 
amended by striking ‘‘$100’’ and inserting ‘‘$250’’. 
(g) FAILURE TO COMPLY WITH OTHER INFORMA-
TION
REPORTING
REQUIREMENTS.—Section 6723 is 
amended— 
(1) by striking ‘‘$50’’ and inserting ‘‘$100’’, 
and 
(2) by striking ‘‘$100,000’’ and inserting 
‘‘$1,500,000’’. 
(h) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to information returns 
required to be filed after December 31, 2008. 
SEC. 19. INCREASE IN PENALTY FOR FAILURE TO FILE 
PARTNERSHIP RETURNS. 
Section 6698 is amended by adding at the end the 
following new subsection: 
‘‘(e) MODIFICATIONS.—In the case of any return re-
quired to be filed after December 31, 2008, the dollar 
amount in effect under subsection (b)(1) shall be increased 
by $15.’’. 
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SEC. 20. INCREASE IN PENALTY FOR FAILURE TO FILE S 
CORPORATION RETURN. 
Section 6699 is amended by adding at the end the 
following new subsection: 
‘‘(e) MODIFICATIONS.—In the case of any return re-
quired to be filed after December 31, 2008, the dollar 
amount in effect under subsection (b)(1) shall be increased 
by $15.’’. 
SEC. 21. TIME FOR PAYMENT OF CORPORATE ESTIMATED 
TAX. 
The percentage under subparagraph (C) of section 
401(1) of the Tax Increase Prevention and Reconciliation 
Act of 2005 in effect on the date of the enactment of this 
Act is increased by 0.25 percentage points. 
Æ 
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