SECTION 1. SHORT TITLE, ETC. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Taxpayer Assistance Act of 2010’’. 
(b) AMENDMENT OF INTERNAL REVENUE CODE OF 
1986.—Except as otherwise expressly provided, whenever 
in this Act an amendment or repeal is expressed in terms 
of an amendment to, or repeal of, a section or other provi-
sion, the reference shall be considered to be made to a 
section or other provision of the Internal Revenue Code 
of 1986. 
(c) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows: 
Sec. 1. Short title, etc. 
TITLE I—CELL PHONES AND ELECTRONIC FILING 
Sec. 101. Removal of cellular telephones and similar telecommunications equip-
ment from listed property. 
Sec. 102. Electronic filing exemption for religious reasons. 
Sec. 103. Accelerate interest on refunds for returns filed electronically. 
TITLE II—COLLECTION 
Sec. 201. Study on the effectiveness of collection alternatives. 
Sec. 202. Repeal of partial payment requirement on submissions of offers-in- 
compromise. 
TITLE III—TAXPAYER ASSISTANCE AND PROTECTION 
IMPROVEMENTS 
Sec. 301. Referrals to Low-Income Taxpayer Clinics permitted. 
Sec. 302. Low-income taxpayer clinics. 
Sec. 303. EITC outreach. 
Sec. 304. Taxpayer notification of suspected identity theft. 
Sec. 305. Clarification of IRS unclaimed refund authority. 
Sec. 306. Study on delivery of tax refunds. 
Sec. 307. Study on timely processing and use of information returns. 
Sec. 308. Study on easing the burden of in-person tax payments. 
TITLE IV—REVENUE PROVISIONS 
Sec. 401. Expansion of bad check penalty to electronic payments.
Sec. 402. Increase in information return penalties. 
Sec. 403. Budget compliance. 
TITLE I—CELL PHONES AND 
ELECTRONIC FILING 
SEC. 101. REMOVAL OF CELLULAR TELEPHONES AND SIMI-
LAR 
TELECOMMUNICATIONS 
EQUIPMENT 
FROM LISTED PROPERTY. 
(a) IN GENERAL.—Subparagraph (A) of section 
280F(d)(4) (defining listed property) is amended by add-
ing ‘‘and’’ at the end of clause (iv), by striking clause (v), 
and by redesignating clause (vi) as clause (v). 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to taxable years beginning after 
December 31, 2009. 
SEC. 102. ELECTRONIC FILING EXEMPTION FOR RELIGIOUS 
REASONS. 
Paragraph (3) of section 6011(e) (relating to special 
rule for tax return preparers) is amended by adding at 
the end the following new subparagraph: 
‘‘(D) EXEMPTION
FOR
RELIGIOUS
REA-
SONS.—The Secretary may exempt from re-
quirements under subparagraph (A) a tax re-
turn preparer who— 
‘‘(i) is a member of a recognized reli-
gious sect or division thereof, and
‘‘(ii) is an adherent of established 
teachings or tenets that do not permit the 
use of magnetic media.’’. 
SEC. 103. ACCELERATE INTEREST ON REFUNDS FOR RE-
TURNS FILED ELECTRONICALLY. 
(a) IN GENERAL.—Subsection (e) of section 6611 
(relating to disallowance of interest on certain overpay-
ments) is amended by adding at the end the following new 
paragraph: 
‘‘(4) SPECIAL RULE.—In the case of any indi-
vidual income tax return relating to income tax filed 
by electronic means, paragraph (1) shall be applied 
by substituting ‘30 days’ for ‘45 days’ each place it 
appears.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall apply to taxable years beginning after 
December 31, 2011. 
TITLE II—COLLECTION 
SEC. 201. STUDY ON THE EFFECTIVENESS OF COLLECTION 
ALTERNATIVES. 
(a) IN GENERAL.—The Secretary of the Treasury 
shall conduct a study to assess the effectiveness of collec-
tion alternatives, especially offers-in-compromise, on long- 
term tax compliance. Such a study shall analyze a group 
of taxpayers who applied for offers-in-compromise 5 or
more years ago and compare the amount of revenue col-
lected from the taxpayers whose offers were accepted with 
the amount of revenue collected from the taxpayers whose 
offers were rejected, and compare, among the taxpayers 
whose offers were rejected, the amount they offered with 
the amounts collected. 
(b) REPORT.—Not later than 1 year after the date 
of 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. 202. REPEAL OF PARTIAL PAYMENT REQUIREMENT 
ON 
SUBMISSIONS 
OF 
OFFERS-IN-COM-
PROMISE. 
(a) IN GENERAL.—Section 7122 is amended by strik-
ing subsection (c) and by redesignating subsections (d), 
(e), (f), and (g) as subsection (c), (d), (e), and (f), respec-
tively. 
(b) CONFORMING AMENDMENTS.— 
(1) Paragraph (3) of section 7122(d) is amend-
ed— 
(A) by inserting ‘‘and’’ at the end of the 
subparagraph (A), 
(B) by striking ‘‘, and’’ at the end of sub-
paragraph (B) and inserting a period, and 
(C) by striking subparagraph (C).
(2) Subsection (f) of section 6159 is amended 
by striking ‘‘section 7122(e)’’ and inserting ‘‘section 
7122(d)’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to offers submitted after the date 
of the enactment of this Act. 
TITLE 
III—TAXPAYER 
ASSIST-
ANCE AND PROTECTION IM-
PROVEMENTS 
SEC. 301. REFERRALS TO LOW-INCOME TAXPAYER CLINICS 
PERMITTED. 
(a) IN GENERAL.—Subsection (c) of section 7526 is 
amended by adding at the end the following new para-
graph: 
‘‘(6) TREASURY
EMPLOYEES
PERMITTED
TO 
REFER TAXPAYERS TO QUALIFIED LOW-INCOME TAX-
PAYER CLINICS.—Notwithstanding any other provi-
sion of law, officers and employees of the Depart-
ment of the Treasury may refer taxpayers for advice 
and assistance to qualified low-income taxpayer clin-
ics receiving funding under this section.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to referrals made after the date 
of the enactment of this Act.
SEC. 302. LOW-INCOME TAXPAYER CLINICS. 
(a) INCREASE IN AUTHORIZED GRANTS.—Paragraph 
(1) of section 7526(c) (relating to aggregate limitation) 
is amended by striking ‘‘$6,000,000’’ and inserting 
‘‘$20,000,000’’. 
(b) CLERICAL AMENDMENT.—Section 7526(c)(5) is 
amended by inserting ‘‘qualified’’ before ‘‘low-income’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to grants made after 
the date of the enactment of this Act. 
SEC. 303. EITC OUTREACH. 
(a) IN GENERAL.—Section 32 (relating to earned in-
come) is amended by adding at the end the following new 
subsection: 
‘‘(n) NOTIFICATION OF POTENTIAL ELIGIBILITY FOR 
CREDIT AND REFUND.— 
‘‘(1) IN GENERAL.—To the extent possible and 
on an annual basis, the Secretary shall provide to 
each taxpayer who— 
‘‘(A) for any preceding taxable year for 
which credit or refund is not precluded by sec-
tion 6511, and 
‘‘(B) did not claim the credit under sub-
section (a) but may be allowed such credit for 
any such taxable year based on return or return
information (as defined in section 6103(b)) 
available to the Secretary, 
notice that such taxpayer may be eligible to claim 
such credit and a refund for such taxable year. 
‘‘(2) NOTICE.—Notice provided under para-
graph (1) shall be in writing and sent to the last 
known address of the taxpayer.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect on the date of the enactment 
of this Act. 
SEC. 304. TAXPAYER NOTIFICATION OF SUSPECTED IDEN-
TITY THEFT. 
(a) IN GENERAL.—Chapter 77 (relating to miscella-
neous provisions), as amended by this Act, 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— 
‘‘(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. 305. 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. 306. STUDY ON DELIVERY OF TAX REFUNDS. 
(a) IN GENERAL.—The National Taxpayer Advocate 
shall 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 fi-
nancial accounts or institutions. 
(b) REPORT.—Not later than 1 year after the date 
of enactment of this Act, the National Taxpayer Advocate 
shall submit a report to Congress containing the results 
of the study conducted under subsection (a).
SEC. 307. STUDY ON TIMELY PROCESSING AND USE OF IN-
FORMATION RETURNS. 
(a) IN GENERAL.—The Secretary of the Treasury 
shall conduct a study on the administrative and legislative 
changes that would be needed to receive and process infor-
mation returns before processing income tax returns. 
(b) REPORT.—Not later than 1 year after the date 
of the enactment of this Act, the Secretary shall submit 
a report to the Committee on Ways and Means of the 
House of Representatives and the Committee on Finance 
of the Senate containing the results of the study conducted 
under subsection (a), together with such recommendations 
as the Secretary considers necessary or appropriate for 
implementation of these changes. 
SEC. 308. STUDY ON EASING THE BURDEN OF IN-PERSON 
TAX PAYMENTS. 
(a) IN GENERAL.—The Secretary of the Treasury 
shall conduct a study on how to reduce the number of tax-
payers making payments at IRS Taxpayer Assistance 
Centers. The report shall include an analysis of— 
(1) whether the Federal Tax Deposit Coupon 
(Form 8109) could be expanded so that it can be 
used with all Federal tax deposits and payments, 
and
(2) what current or new return filing, payment, 
and proof of payment options could be implemented 
to reduce the burden of in-person payments. 
(b) REPORT.—Not later than 1 year after the date 
of the enactment of this Act, the Secretary shall submit 
a report to the Committee on Ways and Means of the 
House of Representatives and the Committee on Finance 
of the Senate containing the results of the study conducted 
under subsection (a), together with such recommendations 
as the Secretary considers necessary or appropriate. 
TITLE IV—REVENUE 
PROVISIONS 
SEC. 401. EXPANSION OF BAD CHECK PENALTY TO ELEC-
TRONIC PAYMENTS. 
(a) IN GENERAL.—Section 6657 (relating to bad 
checks) is amended by adding at the end the following: 
‘‘Except as otherwise provided by the Secretary, any au-
thorization of a payment by commercially acceptable 
means (within the meaning of section 6311) shall be treat-
ed for purposes of this section in the same manner as a 
check.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to authorizations of payments 
made after December 31, 2010.
SEC. 402. 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 ‘‘$30’’. 
(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.— 
(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) ADJUSTMENT FOR INFLATION.—Section 6721 is 
amended by adding at the end the following new sub-
section: 
‘‘(f) ADJUSTMENT FOR INFLATION.— 
‘‘(1) IN
GENERAL.—For each fifth calendar 
year beginning after 2012, each of the dollar 
amounts under subsections (a), (b), (d) (other than 
paragraph (2)(A) thereof), and (e) shall be increased 
by such dollar amount multiplied by the cost-of-liv-
ing adjustment determined under section 1(f)(3) de-
termined by substituting ‘calendar year 2011’ for 
‘calendar year 1992’ in subparagraph (B) thereof. 
‘‘(2) ROUNDING.—If any amount adjusted 
under paragraph (1)— 
‘‘(A) is not less than $75,000 and is not 
a multiple of $500, such amount shall be 
rounded to the next lowest multiple of $500, 
and 
‘‘(B) is not described in subparagraph (A) 
and is not a multiple of $10, such amount shall 
be rounded to the next lowest multiple of $10.’’. 
(g) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to information returns 
required to be filed on or after January 1, 2011. 
SEC. 403. BUDGET COMPLIANCE. 
The budgetary effects of this Act, for the purpose of 
complying with the Statutory Pay-As-You-Go Act of 2010, 
shall be determined by reference to the latest statement 
titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 
Act, submitted for printing in the Congressional Record 
by the Chairman of the Committee on the Budget of the
House of Representatives, provided that such statement 
has been submitted prior to the vote on passage. 
Passed the House of Representatives April 14, 2010. 
Attest: 
Clerk.
111TH CONGRESS 
2D SESSION 
H. R. 4994 
AN ACT 
To amend the Internal Revenue Code of 1986 to 
reduce taxpayer burdens and enhance taxpayer 
protections, and for other purposes.