‘‘(D) certifies to the Secretary for the most 
recent annual period that each such contractor 
or other agent is in compliance with all such re-
quirements. 
The certification required by subparagraph (D) shall 
include the name and address of each contractor and 
other agent, a description of the contract of the con-
tractor or other agent with the agency, and the dura-
tion of such contract.’’. 
(b) CONFORMING AMENDMENT.—Subparagraph (B) of 
section 6103(p)(8) is amended by inserting ‘‘or paragraph 
(9)’’ after ‘‘subparagraph (A)’’. 
(c) EFFECTIVE DATE.—
(1) IN
GENERAL.—The amendments made by 
this section shall apply to disclosures made after De-
cember 31, 2003. 
(2) CERTIFICATIONS.—The first certification 
under section 6103(p)(9)(D) of the Internal Revenue 
Code of 1986, as added by subsection (a), shall be 
made with respect to calendar year 2004. 
SEC. 406. HIGHER STANDARDS FOR REQUESTS FOR AND 
CONSENTS TO DISCLOSURE. 
(a) IN GENERAL.—Subsection (c) of section 6103 (re-
lating to disclosure of returns and return information to
designee of taxpayer) is amended by adding at the end the 
following new paragraphs: 
‘‘(2) REQUIREMENTS FOR VALID REQUESTS AND 
CONSENTS.—A request for or consent to disclosure 
under paragraph (1) shall only be valid for purposes 
of this section, sections 7213, 7213A, and 7431 if—
‘‘(A) at the time of execution, such request 
or consent designates a recipient of such disclo-
sure and is dated, and 
‘‘(B) at the time such request or consent is 
submitted to the Secretary, the submitter of such 
request or consent certifies, under penalty of per-
jury, that such request or consent complied with 
subparagraph (A). 
‘‘(3) RESTRICTIONS ON PERSONS OBTAINING IN-
FORMATION.—Any person shall, as a condition for re-
ceiving return or return information under para-
graph (1)— 
‘‘(A) ensure that such return and return in-
formation is kept confidential, 
‘‘(B) use such return and return informa-
tion only for the purpose for which it was re-
quested, and 
‘‘(C) not disclose such return and return in-
formation except to accomplish the purpose for
which it was requested, unless a separate consent 
from the taxpayer is obtained. 
‘‘(4) REQUIREMENTS FOR FORM PRESCRIBED BY 
SECRETARY.—For purposes of this subsection, the Sec-
retary shall prescribe a form for requests and consents 
which shall— 
‘‘(A) contain a warning, prominently dis-
played, informing the taxpayer that the form 
should not be signed unless it is completed, 
‘‘(B) state that if the taxpayer believes there 
is an attempt to coerce him to sign an incom-
plete or blank form, the taxpayer should report 
the matter to the Treasury Inspector General for 
Tax Administration, and 
‘‘(C) contain the address and telephone 
number of the Treasury Inspector General for 
Tax Administration.’’. 
(b) REPORT.—Not later than 18 months after the date 
of the enactment of this Act, the Treasury Inspector General 
for Tax Administration shall submit a report to the Con-
gress on compliance with the designation and certification 
requirements applicable to requests for or consent to disclo-
sure of returns and return information under section 
6103(c) of the Internal Revenue Code of 1986, as amended 
by subsection (a). Such report shall—
(1) evaluate (on the basis of random sampling) 
whether—
(A) the amendment made by subsection (a) 
is achieving the purposes of this section; 
(B) requesters and submitters for such dis-
closure are continuing to evade the purposes of 
this section and, if so, how; and 
(C) the sanctions for violations of such re-
quirements are adequate; and 
(2) include such recommendations that the 
Treasury Inspector General for Tax Administration 
considers necessary or appropriate to better achieve 
the purposes of this section. 
(c) CONFORMING AMENDMENTS.—
(1) Section 6103(c) is amended by striking 
‘‘TAXPAYER.—The Secretary’’ and inserting ‘‘TAX-
PAYER.—
‘‘(1) IN GENERAL.—The Secretary’’. 
(2) Section 7213(a)(1) is amended by striking 
‘‘section 6103(n)’’ and inserting ‘‘subsections (c) and 
(n) of section 6103’’. 
(3) Section 7213A(a)(1)(B) is amended by strik-
ing ‘‘subsection (l)(18) or (n) of section 6103’’ and in-
serting ‘‘subsection (c), (l)(18), or (n) of section 
6103’’.
(d) EFFECTIVE DATE.—The amendments made by this 
section shall apply to requests and consents made after 3 
months after the date of the enactment of this Act. 
SEC. 407. NOTICE TO TAXPAYER CONCERNING ADMINISTRA-
TIVE DETERMINATION OF BROWSING; AN-
NUAL REPORT. 
(a) NOTICE TO TAXPAYER.—Subsection (e) of section 
7431 (relating to notification of unlawful inspection and 
disclosure) is amended by adding at the end the following: 
‘‘The Secretary shall also notify such taxpayer if the Treas-
ury Inspector General for Tax Administration substantiates 
that such taxpayer’s return or return information was in-
spected or disclosed in violation of any of the provisions 
specified in paragraph (1), (2), or (3).’’. 
(b) REPORTS.—Subsection (p) of section 6103 (relat-
ing to procedure and recordkeeping), as amended by section 
405, is further amended by adding at the end the following 
new paragraph: 
‘‘(10) REPORT ON UNAUTHORIZED DISCLOSURE 
AND INSPECTION.—As part of the report required by 
paragraph (3)(C) for each calendar year, the Sec-
retary shall furnish information regarding the unau-
thorized disclosure and inspection of returns and re-
turn information, including the number, status, and 
results of—
‘‘(A) administrative investigations, 
‘‘(B) civil lawsuits brought under section 
7431 (including the amounts for which such law-
suits were settled and the amounts of damages 
awarded), and 
‘‘(C) criminal prosecutions.’’. 
(c) EFFECTIVE DATE.—
(1) NOTICE.—The amendment made by sub-
section (a) shall apply to determinations made after 
the date of the enactment of this Act. 
(2) REPORTS.—The amendment made by sub-
section (b) shall apply to calendar years ending after 
the date of the enactment of this Act. 
SEC. 408. EXPANDED DISCLOSURE IN EMERGENCY CIR-
CUMSTANCES. 
(a) IN GENERAL.—Section 6103(i)(3)(B) (relating to 
danger of death or physical injury) is amended by striking 
‘‘or State’’ and inserting ‘‘, State, or local’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall take effect on the date of the enactment of this 
Act. 
SEC. 409. DISCLOSURE OF TAXPAYER IDENTITY FOR TAX 
REFUND PURPOSES. 
(a) IN GENERAL.—Paragraph (1) of section 6103(m) 
(relating to disclosure of taxpayer identity information) is
amended by striking ‘‘and other media’’ and by inserting 
‘‘, other media, and through any other means of mass com-
munication,’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall take effect on the date of the enactment of this 
Act. 
SEC. 410. DISCLOSURE TO STATE OFFICIALS OF PROPOSED 
ACTIONS RELATED TO SECTION 501(c)(3) OR-
GANIZATIONS. 
(a) IN GENERAL.—Subsection (c) of section 6104 is 
amended by striking paragraph (2) and inserting the fol-
lowing new paragraphs: 
‘‘(2) DISCLOSURE OF PROPOSED ACTIONS.—
‘‘(A) SPECIFIC NOTIFICATIONS.—In the case 
of an organization to which paragraph (1) ap-
plies, the Secretary may disclose to the appro-
priate State officer—
‘‘(i) a notice of proposed refusal to rec-
ognize such organization as an organization 
described in section 501(c)(3) or a notice of 
proposed revocation of such organization’s 
recognition as an organization exempt from 
taxation,
‘‘(ii) the issuance of a letter of pro-
posed deficiency of tax imposed under sec-
tion 507 or chapter 41 or 42, and 
‘‘(iii) the names, addresses, and tax-
payer identification numbers of organiza-
tions that have applied for recognition as 
organizations described in section 501(c)(3). 
‘‘(B) ADDITIONAL
DISCLOSURES.—Returns 
and return information of organizations with re-
spect to which information is disclosed under 
subparagraph (A) may be made available for in-
spection by or disclosed to an appropriate State 
officer. 
‘‘(C) PROCEDURES FOR DISCLOSURE.—In-
formation may be inspected or disclosed under 
subparagraph (A) or (B) only—
‘‘(i) upon written request by an appro-
priate State officer, and 
‘‘(ii) for the purpose of, and only to the 
extent necessary in, the administration of 
State laws regulating such organizations. 
Such information may only be inspected by or 
disclosed to a person other than the appropriate 
State officer if such person is an officer or em-
ployee of the State and is designated by the ap-
propriate State officer to receive the returns or 
return information under this paragraph on be-
half of the appropriate State officer. 
‘‘(D) DISCLOSURES
OTHER
THAN
BY
RE-
QUEST.—The Secretary may make available for 
inspection or disclose returns and return infor-
mation of an organization to which paragraph 
(1) applies to an appropriate State officer of 
any State if the Secretary determines that such 
inspection or disclosure may facilitate the resolu-
tion of State or Federal issues relating to the 
tax-exempt status of such organization. 
‘‘(3) USE
IN
ADMINISTRATIVE
AND
JUDICIAL 
CIVIL PROCEEDINGS.—Returns and return informa-
tion disclosed pursuant to this subsection may be dis-
closed in administrative and judicial civil pro-
ceedings pertaining to the enforcement of State laws 
regulating such organizations in a manner prescribed 
by the Secretary similar to that for tax administra-
tion proceedings under section 6103(h)(4). 
‘‘(4) NO DISCLOSURE IF IMPAIRMENT.—Returns 
and return information shall not be disclosed under 
this subsection, or in any proceeding described in 
paragraph (3), to the extent that the Secretary deter-
mines that such disclosure would seriously impair 
Federal tax administration. 
‘‘(5) DEFINITIONS.—For purposes of this sub-
section—
‘‘(A) RETURN
AND
RETURN
INFORMA-
TION.—The terms ‘return’ and ‘return informa-
tion’ have the respective meanings given to such 
terms by section 6103(b). 
‘‘(B) APPROPRIATE
STATE
OFFICER.—The 
term ‘appropriate State officer’ means—
‘‘(i) the State attorney general, or 
‘‘(ii) any other State official charged 
with overseeing organizations of the type de-
scribed in section 501(c)(3).’’. 
(b) CONFORMING AMENDMENTS.—
(1) Subparagraph (A) of section 6103(p)(3) is 
amended by inserting ‘‘and section 6104(c)’’ after 
‘‘section’’ in the first sentence. 
(2) Paragraph (4) of section 6103(p) is amend-
ed—
(A) in the matter preceding subparagraph 
(A), by inserting ‘‘, or any appropriate State of-
ficer (as defined in section 6104(c)),’’ before ‘‘or 
any other person’’,
(B) in subparagraph (F)(i), by inserting 
‘‘or any appropriate State officer (as defined in 
section 6104(c)),’’ before ‘‘or any other person’’, 
and 
(C) in the matter following subparagraph 
(F), by inserting ‘‘, an appropriate State officer 
(as defined in section 6104(c)),’’ after ‘‘including 
an agency’’ each place it appears. 
(3) Paragraph (2) of section 7213(a) is amended 
by striking ‘‘6103.’’ and inserting ‘‘6103 or under sec-
tion 6104(c).’’. 
(4) Paragraph (2) of section 7213A(a) is amend-
ed by inserting ‘‘or 6104(c)’’ after ‘‘6103’’. 
(5) Paragraph (2) of section 7431(a) is amended 
by inserting ‘‘(including any disclosure in violation 
of section 6104(c))’’ after ‘‘6103’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall take effect on the date of the enactment of this 
Act but shall not apply to requests made before such date.
SEC. 411. CONFIDENTIALITY OF TAXPAYER COMMUNICA-
TIONS WITH THE OFFICE OF THE TAXPAYER 
ADVOCATE. 
(a) IN GENERAL.—Subsection (c) of section 7803 is 
amended by adding at the end the following new paragraph:
‘‘(5) CONFIDENTIALITY OF TAXPAYER INFORMA-
TION.—
‘‘(A) IN GENERAL.—To the extent author-
ized by the National Taxpayer Advocate or pur-
suant to guidance issued under subparagraph 
(B), any officer or employee of the Office of the 
Taxpayer Advocate may withhold from the Inter-
nal Revenue Service and the Department of Jus-
tice any information provided by, or regarding 
contact with, any taxpayer. 
‘‘(B) ISSUANCE
OF
GUIDANCE.—In con-
sultation with the Chief Counsel for the Internal 
Revenue Service and subject to the approval of 
the Commissioner of Internal Revenue, the Na-
tional Taxpayer Advocate may issue guidance 
regarding the circumstances (including with re-
spect to litigation) under which, and the persons 
to whom, employees of the Office of the Taxpayer 
Advocate shall not disclose information obtained 
from a taxpayer. To the extent to which any pro-
vision of the Internal Revenue Manual would re-
quire greater disclosure by employees of the Of-
fice of the Taxpayer Advocate than the disclosure 
required under such guidance, such provision 
shall not apply.
‘‘(C) 
EMPLOYEE
PROTECTION.—Section 
7214(a)(8) shall not apply to any failure to re-
port knowledge or information if—
‘‘(i) such failure to report is authorized 
under subparagraph (A), and 
‘‘(ii) such knowledge or information is 
not of fraud committed by a person against 
the United States under any revenue law.’’. 
(b) CONFORMING AMENDMENT.—Subparagraph (A) of 
section 7803(c)(4) is amended by inserting ‘‘and’’ at the 
end of clause (ii), by striking ‘‘; and’’ at the end of clause 
(iii) and inserting a period, and by striking clause (iv). 
TITLE V—MISCELLANEOUS 
SEC. 501. CLARIFICATION OF DEFINITION OF CHURCH TAX 
INQUIRY. 
Subsection (i) of section 7611 (relating to section not 
to apply to criminal investigations, etc.) is amended by 
striking ‘‘or’’ at the end of paragraph (4), by striking the 
period at the end of paragraph (5) and inserting ‘‘, or’’, 
and by inserting after paragraph (5) the following: 
‘‘(6) information provided by the Secretary re-
lated to the standards for exemption from tax under 
this title and the requirements under this title relat-
ing to unrelated business taxable income.’’.
SEC. 502. EXPANSION OF DECLARATORY JUDGMENT REM-
EDY TO TAX-EXEMPT ORGANIZATIONS. 
(a) IN GENERAL.—Paragraph (1) of section 7428(a) 
(relating to creation of remedy) is amended—
(1) in subparagraph (B) by inserting after 
‘‘509(a))’’ the following: ‘‘or as a private operating 
foundation (as defined in section 4942(j)(3))’’; and 
(2) by amending subparagraph (C) to read as 
follows: 
‘‘(C) with respect to the initial qualification 
or continuing qualification of an organization as 
an organization described in subsection (c) 
(other than paragraph (3)) or (d) of section 501 
which is exempt from tax under section 501(a), 
or’’. 
(b) COURT JURISDICTION.—Subsection (a) of section 
7428 is amended in the material following paragraph (2) 
by striking ‘‘United States Tax Court, the United States 
Claims Court, or the district court of the United States for 
the District of Columbia’’ and inserting the following: 
‘‘United States Tax Court (in the case of any such deter-
mination or failure) or the United States Claims Court or 
the district court of the United States for the District of 
Columbia (in the case of a determination or failure with 
respect to an issue referred to in subparagraph (A) or (B) 
of paragraph (1)),’’.
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to pleadings filed with respect to deter-
minations (or requests for determinations) made after the 
date of the enactment of this Act. 
SEC. 503. EMPLOYEE MISCONDUCT REPORT TO INCLUDE 
SUMMARY OF COMPLAINTS BY CATEGORY. 
(a) IN GENERAL.—Clause (ii) of section 7803(d)(2)(A) 
is amended by inserting before the semicolon at the end the 
following: ‘‘, including a summary (by category) of the 10 
most common complaints made and the number of such 
common complaints’’. 
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall apply with respect to reporting periods 
ending after the date of the enactment of this Act. 
SEC. 504. ANNUAL REPORT ON AWARDS OF COSTS AND CER-
TAIN FEES IN ADMINISTRATIVE AND COURT 
PROCEEDINGS. 
Not later than 3 months after the close of each Federal 
fiscal year after fiscal year 2003, the Treasury Inspector 
General for Tax Administration shall submit a report to 
Congress which specifies for such year—
(1) the number of payments made by the United 
States pursuant to section 7430 of the Internal Rev-
enue Code of 1986 (relating to awarding of costs and 
certain fees);
(2) the amount of each such payment; 
(3) an analysis of any administrative issue giv-
ing rise to such payments; and 
(4) changes (if any) which will be implemented 
as a result of such analysis and other changes (if 
any) recommended by the Treasury Inspector General 
for Tax Administration as a result of such analysis. 
SEC. 505. ANNUAL REPORT ON ABATEMENT OF PENALTIES. 
Not later than 6 months after the close of each Federal 
fiscal year after fiscal year 2003, the Treasury Inspector 
General for Tax Administration shall submit a report to 
Congress on abatements of penalties under the Internal Rev-
enue Code of 1986 during such year, including information 
on the reasons and criteria for such abatements. 
SEC. 506. BETTER MEANS OF COMMUNICATING WITH TAX-
PAYERS. 
Not later than 18 months after the date of the enact-
ment of this Act, the Treasury Inspector General for Tax 
Administration shall submit a report to Congress evalu-
ating whether technological advances, such as e-mail and 
facsimile transmission, permit the use of alternative means 
for the Internal Revenue Service to communicate with tax-
payers.
SEC. 507. EXPLANATION OF STATUTE OF LIMITATIONS AND 
CONSEQUENCES OF FAILURE TO FILE. 
The Secretary of the Treasury or the Secretary’s dele-
gate shall, as soon as practicable but not later than 180 
days after the date of the enactment of this Act, revise the 
statement required by section 6227 of the Omnibus Tax-
payer Bill of Rights (Internal Revenue Service Publication 
No. 1), and any instructions booklet accompanying a gen-
eral income tax return form for taxable years beginning 
after 2002 (including forms 1040, 1040A, 1040EZ, and any 
similar or successor forms relating thereto), to provide for 
an explanation of—
(1) the limitations imposed by section 6511 of 
the Internal Revenue Code of 1986 on credits and re-
funds; and 
(2) the consequences under such section 6511 of 
the failure to file a return of tax. 
SEC. 508. AMENDMENT TO TREASURY AUCTION REFORMS. 
(a) IN GENERAL.—Clause (i) of section 202(c)(4)(B) 
of the Government Securities Act Amendments of 1993 (31 
U.S.C. 3121 note) is amended by inserting before the semi-
colon ‘‘(or, if earlier, at the time the Secretary releases the 
minutes of the meeting in accordance with paragraph (2))’’. 
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall apply to meetings held after the date of 
the enactment of this Act.
SEC. 509. ENROLLED AGENTS. 
(a) IN GENERAL.—Chapter 77 (relating to miscella-
neous provisions) is amended by adding at the end the fol-
lowing new section: 
‘‘SEC. 7528. ENROLLED AGENTS. 
‘‘(a) IN GENERAL.—The Secretary may prescribe such 
regulations as may be necessary to regulate the conduct of 
enrolled agents in regards to their practice before the Inter-
nal Revenue Service. 
‘‘(b) USE
OF CREDENTIALS.—Any enrolled agents 
properly licensed to practice as required under rules pro-
mulgated under section (a) herein shall be allowed to use 
the credentials or designation as ‘enrolled agent’, ‘EA’, or 
‘E.A.’.’’. 
(b) CLERICAL AMENDMENT.—The table of sections for 
chapter 77 is amended by adding at the end the following 
new item:
‘‘Sec. 7528. Enrolled agents.’’.
(c) PRIOR REGULATIONS.—Nothing in the amend-
ments made by this section shall be construed to have any 
effect on part 10 of title 31, Code of Federal Regulations, 
or any other Federal rule or regulation issued before the 
date of the enactment of this Act. 
SEC. 510. FINANCIAL MANAGEMENT SERVICE FEES. 
Notwithstanding any other provision of law, the Fi-
nancial Management Service may charge the Internal Rev-
enue Service, and the Internal Revenue Service may pay 
the Financial Management Service, a fee sufficient to cover 
the full cost of implementing a continuous levy program 
under subsection (h) of section 6331 of the Internal Revenue 
Code of 1986. Any such fee shall be based on actual levies 
made and shall be collected by the Financial Management 
Service by the retention of a portion of amounts collected 
by levy pursuant to that subsection. Amounts received by 
the Financial Management Service as fees under that sub-
section shall be deposited into the account of the Depart-
ment of the Treasury under section 3711(g)(7) of title 31, 
United States Code, and shall be collected and accounted 
for in accordance with the provisions of that section. The 
amount credited against the taxpayer’s liability on account 
of the continuous levy shall be the amount levied, without 
reduction for the amount paid to the Financial Manage-
ment Service as a fee.
SEC. 511. EXTENSION OF INTERNAL REVENUE SERVICE 
USER FEES. 
(a) IN GENERAL.—Chapter 77 (relating to miscella-
neous provisions), as amended by section 509, is further 
amended by adding at the end the following new section: 
‘‘SEC. 7529. INTERNAL REVENUE SERVICE USER FEES. 
‘‘(a) GENERAL RULE.—The Secretary shall establish 
a program requiring the payment of user fees for—
gible employers or any trust which is part of the 
plan. The preceding sentence shall not apply to 
any request—
‘‘(i) made after the later of—
‘‘(I) the fifth plan year the pen-
sion benefit plan is in existence, or 
‘‘(II) the end of any remedial 
amendment period with respect to the 
plan beginning within the first 5 plan 
years, or 
‘‘(ii) made by the sponsor of any proto-
type or similar plan which the sponsor in-
tends to market to participating employers. 
‘‘(C) DEFINITIONS AND SPECIAL RULES.—
For purposes of subparagraph (B)—
‘‘(i) PENSION
BENEFIT
PLAN.—The 
term ‘pension benefit plan’ means a pen-
sion, profit-sharing, stock bonus, annuity, 
or employee stock ownership plan. 
‘‘(ii) ELIGIBLE EMPLOYER.—The term 
‘eligible employer’ means an eligible em-
ployer 
(as 
defined 
in 
section 
408(p)(2)(C)(i)(I)) which has at least 1 em-
ployee who is not a highly compensated em-
ployee (as defined in section 414(q)) and is
participating in the plan. The determina-
tion of whether an employer is an eligible 
employer under subparagraph (B) shall be 
made as of the date of the request described 
in such subparagraph. 
‘‘(iii) DETERMINATION
OF
AVERAGE 
FEES CHARGED.—For purposes of any de-
termination of average fees charged, any re-
quest to which subparagraph (B) applies 
shall not be taken into account. 
‘‘(3) AVERAGE FEE REQUIREMENT.—The average 
fee charged under the program required by subsection 
(a) shall not be less than the amount determined 
under the following table:
Average 
‘‘Category 
Fee 
Employee plan ruling and opinion ..............................................
$250
Exempt organization ruling .........................................................
$350
Employee plan determination ......................................................
$300
Exempt organization determination ............................................
$275
Chief counsel ruling .......................................................................
$200.
‘‘(c) TERMINATION.—No fee shall be imposed under 
this section with respect to requests made after September 
30, 2013.’’. 
(b) CONFORMING AMENDMENTS.—
(1) The table of sections for chapter 77 is amend-
ed by adding at the end the following new item:
‘‘Sec. 7529. Internal Revenue Service user fees.’’.
(2) Section 10511 of the Revenue Act of 1987 is 
repealed. 
(3) Section 620 of the Economic Growth and 
Tax Relief Reconciliation Act of 2001 is repealed. 
(c) LIMITATIONS.—Notwithstanding any other provi-
sion of law, any fees collected pursuant to section 7527 of 
the Internal Revenue Code of 1986, as added by subsection 
(a), shall not be expended by the Internal Revenue Service 
unless provided by an appropriations Act. 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall apply to requests made after the date of the 
enactment of this Act. 
TITLE VI—LOW-INCOME 
TAXPAYER CLINICS 
SEC. 601. LOW-INCOME TAXPAYER CLINICS. 
(a) LIMITATION ON AMOUNT OF GRANTS.—Paragraph 
(1) of section 7526(c) (relating to special rules and limita-
tions) is amended by striking ‘‘$6,000,000 per year’’ and 
inserting ‘‘$9,000,000 for 2004, $12,000,000 for 2005, and 
$15,000,000 for each year thereafter’’. 
(b) PROMOTION
OF CLINICS.—Section 7526(c) is 
amended by adding at the end the following new paragraph: 
‘‘(6) PROMOTION OF CLINICS.—The Secretary is 
authorized to promote the benefits of and encourage
the use of low-income taxpayer clinics through the use 
of mass communications, referrals, and other means.’’. 
(c) USE OF GRANTS FOR OVERHEAD EXPENSES PRO-
HIBITED.—Section 7526(c), as amended by subsection (b), 
is further amended by adding at the end the following new 
paragraph: 
‘‘(7) USE OF GRANTS FOR OVERHEAD EXPENSES 
PROHIBITED.—No grant made under this section may 
be used for the general overhead expenses of any insti-
tution sponsoring a qualified low-income taxpayer 
clinic.’’. 
(d) ELIGIBLE CLINICS.—
(1) IN
GENERAL.—Paragraph (2) of section 
7526(b) is amended to read as follows: 
‘‘(2) ELIGIBLE CLINIC.—The term ‘eligible clinic’ 
means— 
‘‘(A) any clinical program at an accredited 
law, business, or accounting school in which stu-
dents represent low-income taxpayers in con-
troversies arising under this title; and 
‘‘(B) any organization described in section 
501(c) and exempt from tax under section 501(a) 
which satisfies the requirements of paragraph (1) 
through representation of taxpayers or referral of 
taxpayers to qualified representatives.’’.
(2) CONFORMING
AMENDMENT.—Subparagraph 
(A) of section 7526(b)(1) is amended by striking 
‘‘means a clinic’’ and inserting ‘‘means an eligible 
clinic’’. 
TITLE VII—FEDERAL-STATE UN-
EMPLOYMENT 
ASSISTANCE 
AGREEMENTS 
SEC. 701. APPLICABILITY OF CERTAIN FEDERAL-STATE 
AGREEMENTS RELATING TO UNEMPLOYMENT 
ASSISTANCE. 
Effective as of May 25, 2003, section 208 of Public 
Law 107–147 is amended—
(1) in subsection (a)(2), by inserting ‘‘on or’’ 
after ‘‘ending’’; and 
(2) in subsection (b), by striking ‘‘May 31’’ each 
place it appears and inserting ‘‘June 1’’.
Union Calendar No. 39
108TH CONGRESS 
1ST SESSION 
H. R. 1528
[Report No. 108–61] 
A BILL 
To amend the Internal Revenue Code of 1986 to 
protect taxpayers and ensure accountability of 
the Internal Revenue Service. 
APRIL 8, 2003
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed