have access to internet service (other than dial- 
up or satellite service).’’. 
(d) CONFORMING AMENDMENT.—Section 6724(c) is 
amended by striking ‘‘250 information returns (more than 
100 information returns in the case of a partnership hav-
ing more than 100 partners)’’ and inserting ‘‘the applica-
ble number (determined under section 6011(e)(5) with re-
spect to the calendar year to which such returns relate) 
of information returns’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date of the enactment 
of this Act. 
SEC. 2302. UNIFORM STANDARDS FOR THE USE OF ELEC-
TRONIC SIGNATURES FOR DISCLOSURE AU-
THORIZATIONS TO, AND OTHER AUTHORIZA-
TIONS OF, PRACTITIONERS. 
Section 6061(b)(3) is amended to read as follows: 
‘‘(3) PUBLISHED GUIDANCE.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
publish guidance as appropriate to define and 
implement any waiver of the signature require-
ments or any method adopted under paragraph 
(1). 
‘‘(B) ELECTRONIC SIGNATURES FOR DIS-
CLOSURE AUTHORIZATIONS TO, AND OTHER AU-
THORIZATIONS OF, PRACTITIONERS.—Not later 
than 6 months after the date of the enactment 
of this subparagraph, the Secretary shall pub-
lish guidance to establish uniform standards 
and procedures for the acceptance of taxpayers’ 
signatures appearing in electronic form with re-
spect to any request for disclosure of a tax-
payer’s return or return information under sec-
tion 6103(c) to a practitioner or any power of 
attorney granted by a taxpayer to a practi-
tioner. 
‘‘(C) PRACTITIONER.—For purposes of 
subparagraph (B), the term ‘practitioner’ 
means any individual in good standing who is 
regulated under section 330 of title 31, United 
States Code.’’. 
SEC. 2303. PAYMENT OF TAXES BY DEBIT AND CREDIT 
CARDS. 
Section 6311(d)(2) is amended by adding at the end 
the following: ‘‘The preceding sentence shall not apply to 
the extent that the Secretary ensures that any such fee 
or other consideration is fully recouped by the Secretary 
in the form of fees paid to the Secretary by persons paying 
taxes imposed under subtitle A with credit, debit, or 
charge cards pursuant to such contract. Notwithstanding
the preceding sentence, the Secretary shall seek to mini-
mize the amount of any fee or other consideration that 
the Secretary pays under any such contract.’’. 
SEC. 2304. AUTHENTICATION OF USERS OF ELECTRONIC 
SERVICES ACCOUNTS. 
Beginning 180 days after the date of the enactment 
of this Act, the Secretary of the Treasury (or the Sec-
retary’s delegate) shall verify the identity of any individual 
opening an e-Services account with the Internal Revenue 
Service before such individual is able to use the e-Services 
tools. 
Subtitle E—Other Provisions 
SEC. 2401. REPEAL OF PROVISION REGARDING CERTAIN 
TAX COMPLIANCE PROCEDURES AND RE-
PORTS. 
Section 2004 of the Internal Revenue Service Re-
structuring and Reform Act of 1998 (26 U.S.C. 6012 
note) is repealed. 
SEC. 2402. COMPREHENSIVE TRAINING STRATEGY. 
Not later than 1 year after the date of the enactment 
of this Act, the Commissioner of Internal Revenue shall 
submit to Congress a written report providing a com-
prehensive training strategy for employees of the Internal 
Revenue Service, including—
(1) a plan to streamline current training proc-
esses, including an assessment of the utility of fur-
ther consolidating internal training programs, tech-
nology, and funding; 
(2) a plan to develop annual training regarding 
taxpayer rights, including the role of the Office of 
the Taxpayer Advocate, for employees that interface 
with taxpayers and the direct managers of such em-
ployees; 
(3) a plan to improve technology-based training; 
(4) proposals to— 
(A) focus employee training on early, fair, 
and efficient resolution of taxpayer disputes for 
employees that interface with taxpayers and the 
direct managers of such employees; and 
(B) ensure consistency of skill development 
and employee evaluation throughout the Inter-
nal Revenue Service; and 
(5) a thorough assessment of the funding nec-
essary to implement such strategy.
TITLE III—MISCELLANEOUS 
PROVISIONS 
Subtitle A—Reform of Laws Gov-
erning Internal Revenue Serv-
ice Employees 
SEC. 3001. PROHIBITION ON REHIRING ANY EMPLOYEE OF 
THE INTERNAL REVENUE SERVICE WHO WAS 
INVOLUNTARILY SEPARATED FROM SERVICE 
FOR MISCONDUCT. 
(a) IN GENERAL.—Section 7804 is amended by add-
ing at the end the following new subsection: 
‘‘(d) PROHIBITION ON REHIRING EMPLOYEES INVOL-
UNTARILY SEPARATED.—The Commissioner may not hire 
any individual previously employed by the Commissioner 
who was removed for misconduct under this subchapter 
or chapter 43 or chapter 75 of title 5, United States Code, 
or whose employment was terminated under section 1203 
of the Internal Revenue Service Restructuring and Reform 
Act of 1998 (26 U.S.C. 7804 note).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply with respect to the hiring of em-
ployees after the date of the enactment of this Act.
SEC. 3002. NOTIFICATION OF UNAUTHORIZED INSPECTION 
OR DISCLOSURE OF RETURNS AND RETURN 
INFORMATION. 
(a) IN GENERAL.—Subsection (e) of section 7431 is 
amended by adding at the end the following new sen-
tences: ‘‘The Secretary shall also notify such taxpayer if 
the Internal Revenue Service or a Federal or State agency 
(upon notice to the Secretary by such Federal or State 
agency) proposes an administrative determination as to 
disciplinary or adverse action against an employee arising 
from the employee’s unauthorized inspection or disclosure 
of the taxpayer’s return or return information. The notice 
described in this subsection shall include the date of the 
unauthorized inspection or disclosure and the rights of the 
taxpayer under such administrative determination.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to determinations proposed after 
the date which is 180 days after the date of the enactment 
of this Act. 
Subtitle B—Provisions Relating to 
Exempt Organizations 
SEC. 3101. MANDATORY E-FILING BY EXEMPT ORGANIZA-
TIONS. 
(a) IN GENERAL.—Section 6033 is amended by re-
designating subsection (n) as subsection (o) and by insert-
ing after subsection (m) the following new subsection:
‘‘(n) MANDATORY ELECTRONIC FILING.—Any orga-
nization required to file a return under this section shall 
file such return in electronic form.’’. 
(b) CONFORMING AMENDMENT.—Paragraph (7) of 
section 527(j) is amended by striking ‘‘if the organization 
has’’ and all that follows through ‘‘such calendar year’’. 
(c) INSPECTION OF ELECTRONICALLY FILED AN-
NUAL RETURNS.—Subsection (b) of section 6104 is 
amended by adding at the end the following: ‘‘Any annual 
return required to be filed electronically under section 
6033(n) shall be made available by the Secretary to the 
public as soon as practicable in a machine readable for-
mat.’’. 
(d) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section 
shall apply to taxable years beginning after the date 
of the enactment of this Act. 
(2) TRANSITIONAL RELIEF.— 
(A) SMALL ORGANIZATIONS.— 
(i) IN GENERAL.—In the case of any 
small organizations, or any other organiza-
tions for which the Secretary of the Treas-
ury or the Secretary’s delegate (hereafter 
referred to in this paragraph as the ‘‘Sec-
retary’’) determines the application of the 
amendments made by this section would 
cause undue burden without a delay, the 
Secretary may delay the application of 
such amendments, but such delay shall not 
apply to any taxable year beginning on or 
after the date 2 years after of the enact-
ment of this Act. 
(ii) SMALL ORGANIZATION.—For pur-
poses of clause (i), the term ‘‘small organi-
zation’’ means any organization— 
(I) the gross receipts of which for 
the 
taxable 
year 
are 
less 
than 
$200,000; and 
(II) the aggregate gross assets of 
which at the end of the taxable year 
are less than $500,000. 
(B) ORGANIZATIONS
FILING
FORM 990– 
T.—In the case of any organization described 
in section 511(a)(2) of the Internal Revenue 
Code of 1986 which is subject to the tax im-
posed by section 511(a)(1) of such Code on its 
unrelated business taxable income, or any orga-
nization required to file a return under section 
6033 of such Code and include information
under subsection (e) thereof, the Secretary may 
delay the application of the amendments made 
by this section, but such delay shall not apply 
to any taxable year beginning on or after the 
date 2 years after of the enactment of this Act. 
SEC. 3102. NOTICE REQUIRED BEFORE REVOCATION OF 
TAX-EXEMPT STATUS FOR FAILURE TO FILE 
RETURN. 
(a) IN GENERAL.—Section 6033(j)(1) is amended by 
striking ‘‘If an organization’’ and inserting the following: 
‘‘(A) NOTICE.—If an organization de-
scribed in subsection (a)(1) or (i) fails to file 
the annual return or notice required under ei-
ther subsection for 2 consecutive years, the Sec-
retary shall notify the organization— 
‘‘(i) that the Internal Revenue Service 
has no record of such a return or notice 
from such organization for 2 consecutive 
years, and 
‘‘(ii) about the revocation that will 
occur under subparagraph (B) if the orga-
nization fails to file such a return or notice 
by the due date for the next such return 
or notice required to be filed.
The notification under the preceding sentence 
shall include information about how to comply 
with the filing requirements under subsections 
(a)(1) and (i). 
‘‘(B) REVOCATION.—If an organization’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to failures to file returns or notices 
for 2 consecutive years if the return or notice for the sec-
ond year is required to be filed after December 31, 2019. 
Subtitle C—Revenue Provision 
SEC. 3201. INCREASE IN PENALTY FOR FAILURE TO FILE. 
(a) IN GENERAL.—The second sentence of subsection 
(a) of section 6651 is amended by striking ‘‘$205’’ and 
inserting ‘‘$330’’. 
(b) INFLATION ADJUSTMENT.—Section 6651(j)(1) is 
amended— 
(1) by striking ‘‘2014’’ and inserting ‘‘2020’’; 
(2) by striking ‘‘$205’’ and inserting ‘‘$330’’; 
and 
(3) by striking ‘‘2013’’ and inserting ‘‘2019’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to returns required to be filed after 
December 31, 2019.
TITLE IV—BUDGETARY EFFECTS 
SEC. 4001. DETERMINATION OF BUDGETARY EFFECTS. 
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 House Budget Committee, pro-
vided that such statement has been submitted prior to the 
vote on passage. 
Passed the House of Representatives April 9, 2019. 
Attest: 
Clerk.