H. R. 22—423 
‘‘(i) at any time after assessment, the Internal 
Revenue Service removes such receivable from the 
active inventory for lack of resources or inability to 
locate the taxpayer, 
‘‘(ii) more than 1⁄3 of the period of the applicable 
statute of limitation has lapsed and such receivable 
has not been assigned for collection to any employee 
of the Internal Revenue Service, or 
‘‘(iii) in the case of a receivable which has been 
assigned for collection, more than 365 days have passed 
without interaction with the taxpayer or a third party 
for purposes of furthering the collection of such receiv-
able. 
‘‘(B) TAX RECEIVABLE.—The term ‘tax receivable’ means 
any outstanding assessment which the Internal Revenue 
Service includes in potentially collectible inventory.’’. 
(b) CERTAIN TAX RECEIVABLES NOT ELIGIBLE FOR COLLECTION 
UNDER QUALIFIED TAX COLLECTION CONTRACTS.—Section 6306 of 
the Internal Revenue Code of 1986, as amended by subsection 
(a), is amended by redesignating subsections (d) through (g) as 
subsections (e) through (h), respectively, and by inserting after 
subsection (c) the following new subsection: 
‘‘(d) CERTAIN TAX RECEIVABLES NOT ELIGIBLE FOR COLLECTION 
UNDER QUALIFIED TAX COLLECTIONS CONTRACTS.—A tax receivable 
shall not be eligible for collection pursuant to a qualified tax collec-
tion contract if such receivable— 
‘‘(1) is subject to a pending or active offer-in-compromise 
or installment agreement, 
‘‘(2) is classified as an innocent spouse case, 
‘‘(3) involves a taxpayer identified by the Secretary as 
being— 
‘‘(A) deceased, 
‘‘(B) under the age of 18, 
‘‘(C) in a designated combat zone, or 
‘‘(D) a victim of tax-related identity theft, 
‘‘(4) is currently under examination, litigation, criminal 
investigation, or levy, or 
‘‘(5) is currently subject to a proper exercise of a right 
of appeal under this title.’’. 
(c) CONTRACTING PRIORITY.—Section 6306 of the Internal Rev-
enue Code of 1986, as amended by the preceding provisions of 
this section, is amended by redesignating subsection (h) as sub-
section (i) and by inserting after subsection (g) the following new 
subsection: 
‘‘(h) CONTRACTING PRIORITY.—In contracting for the services 
of any person under this section, the Secretary shall utilize private 
collection contractors and debt collection centers on the schedule 
required under section 3711(g) of title 31, United States Code, 
including the technology and communications infrastructure estab-
lished therein, to the extent such private collection contractors 
and debt collection centers are appropriate to carry out the purposes 
of this section.’’. 
(d) DISCLOSURE OF RETURN INFORMATION.—Section 6103(k) of 
the Internal Revenue Code of 1986, as amended by section 32101, 
is amended by adding at the end the following new paragraph: 
‘‘(12) QUALIFIED TAX COLLECTION CONTRACTORS.—Persons 
providing services pursuant to a qualified tax collection contract
H. R. 22—424 
under section 6306 may, if speaking to a person who has 
identified himself or herself as having the name of the taxpayer 
to which a tax receivable (within the meaning of such section) 
relates, identify themselves as contractors of the Internal Rev-
enue Service and disclose the business name of the contractor, 
and the nature, subject, and reason for the contact. Disclosures 
under this paragraph shall be made only in such situations 
and under such conditions as have been approved by the Sec-
retary.’’. 
(e) TAXPAYERS AFFECTED
BY FEDERALLY DECLARED DISAS-
TERS.—Section 6306 of the Internal Revenue Code of 1986, as 
amended by the preceding provisions of this section, is amended 
by redesignating subsection (i) as subsection (j) and by inserting 
after subsection (h) the following new subsection: 
‘‘(i) 
TAXPAYERS
IN
PRESIDENTIALLY
DECLARED
DISASTER 
AREAS.—The Secretary may prescribe procedures under which a 
taxpayer determined to be affected by a Federally declared disaster 
(as defined by section 165(i)(5)) may request— 
‘‘(1) relief from immediate collection measures by contrac-
tors under this section, and 
‘‘(2) a return of the inactive tax receivable to the inventory 
of the Internal Revenue Service to be collected by an employee 
thereof.’’. 
(f) REPORT TO CONGRESS.— 
(1) IN GENERAL.—Section 6306 of the Internal Revenue 
Code of 1986, as amended by the preceding provisions of this 
section, is amended by redesignating subsection (j) as sub-
section (k) and by inserting after subsection (i) the following 
new subsection: 
‘‘(j) REPORT TO CONGRESS.—Not later than 90 days after the 
last day of each fiscal year (beginning with the first such fiscal 
year ending after the date of the enactment of this subsection), 
the Secretary shall submit to the Committee on Ways and Means 
of the House of Representatives and the Committee on Finance 
of the Senate a report with respect to qualified tax collection con-
tracts under this section which shall include— 
‘‘(1) annually, with respect to such fiscal year— 
‘‘(A) the total number and amount of tax receivables 
provided to each contractor for collection under this section, 
‘‘(B) the total amounts collected (and amounts of 
installment agreements entered into under subsection 
(b)(1)(B)) with respect to each contractor and the collection 
costs incurred (directly and indirectly) by the Internal Rev-
enue Service with respect to such amounts, 
‘‘(C) the impact of such contracts on the total number 
and amount of unpaid assessments, and on the number 
and amount of assessments collected by Internal Revenue 
Service personnel after initial contact by a contractor, 
‘‘(D) the amount of fees retained by the Secretary under 
subsection (e) and a description of the use of such funds, 
and 
‘‘(E) a disclosure safeguard report in a form similar 
to that required under section 6103(p)(5), and 
‘‘(2) biannually (beginning with the second report submitted 
under this subsection)— 
‘‘(A) an independent evaluation of contractor perform-
ance, and
H. R. 22—425 
‘‘(B) a measurement plan that includes a comparison 
of the best practices used by the private collectors to the 
collection techniques used by the Internal Revenue Service 
and mechanisms to identify and capture information on 
successful collection techniques used by the contractors 
that could be adopted by the Internal Revenue Service.’’. 
(2) REPEAL OF EXISTING REPORTING REQUIREMENTS WITH 
RESPECT TO QUALIFIED TAX COLLECTION CONTRACTS.—Section 
881 of the American Jobs Creation Act of 2004 is amended 
by striking subsection (e). 
(g) EFFECTIVE DATES.— 
(1) IN GENERAL.—The amendments made by subsections 
(a) and (b) shall apply to tax receivables identified by the 
Secretary after the date of the enactment of this Act. 
(2) CONTRACTING
PRIORITY.—The Secretary shall begin 
entering into contracts and agreements as described in the 
amendment made by subsection (c) within 3 months after the 
date of the enactment of this Act. 
(3) DISCLOSURES.—The amendment made by subsection (d) 
shall apply to disclosures made after the date of the enactment 
of this Act. 
(4) PROCEDURES; REPORT TO CONGRESS.—The amendments 
made by subsections (e) and (f) shall take effect on the date 
of the enactment of this Act. 
SEC. 32103. SPECIAL COMPLIANCE PERSONNEL PROGRAM. 
(a) IN GENERAL.—Subsection (e) of section 6306 of the Internal 
Revenue Code of 1986, as redesignated by section 52106, is amended 
by striking ‘‘for collection enforcement activities of the Internal 
Revenue Service’’ in paragraph (2) and inserting ‘‘to fund the special 
compliance personnel program account under section 6307’’. 
(b) SPECIAL COMPLIANCE PERSONNEL PROGRAM ACCOUNT.—Sub-
chapter A of chapter 64 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new section: 
‘‘SEC. 6307. SPECIAL COMPLIANCE PERSONNEL PROGRAM ACCOUNT. 
‘‘(a) ESTABLISHMENT
OF
A SPECIAL COMPLIANCE PERSONNEL 
PROGRAM ACCOUNT.—The Secretary shall establish an account 
within the Department for carrying out a program consisting of 
the hiring, training, and employment of special compliance per-
sonnel, and shall transfer to such account from time to time 
amounts retained by the Secretary under section 6306(e)(2). 
‘‘(b) RESTRICTIONS.—The program described in subsection (a) 
shall be subject to the following restrictions: 
‘‘(1) No funds shall be transferred to such account except 
as described in subsection (a). 
‘‘(2) No other funds from any other source shall be expended 
for special compliance personnel employed under such program, 
and no funds from such account shall be expended for the 
hiring of any personnel other than special compliance personnel. 
‘‘(3) Notwithstanding any other authority, the Secretary 
is prohibited from spending funds out of such account for any 
purpose other than for costs under such program associated 
with the employment of special compliance personnel and the 
retraining and reassignment of current noncollections personnel 
as special compliance personnel, and to reimburse the Internal 
Revenue Service or other government agencies for the cost
H. R. 22—426 
of administering qualified tax collection contracts under section 
6306. 
‘‘(c) REPORTING.—Not later than March of each year, the 
Commissioner of Internal Revenue shall submit a report to the 
Committees on Finance and Appropriations of the Senate and the 
Committees on Ways and Means and Appropriations of the House 
of Representatives consisting of the following: 
‘‘(1) For the preceding fiscal year, all funds received in 
the account established under subsection (a), administrative 
and program costs for the program described in such subsection, 
the number of special compliance personnel hired and employed 
under the program, and the amount of revenue actually col-
lected by such personnel. 
‘‘(2) For the current fiscal year, all actual and estimated 
funds received or to be received in the account, all actual 
and estimated administrative and program costs, the number 
of all actual and estimated special compliance personnel hired 
and employed under the program, and the actual and estimated 
revenue actually collected or to be collected by such personnel. 
‘‘(3) For the following fiscal year, an estimate of all funds 
to be received in the account, all estimated administrative 
and program costs, the estimated number of special compliance 
personnel hired and employed under the program, and the 
estimated revenue to be collected by such personnel. 
‘‘(d) DEFINITIONS.—For purposes of this section— 
‘‘(1) SPECIAL COMPLIANCE PERSONNEL.—The term ‘special 
compliance personnel’ means individuals employed by the 
Internal Revenue Service as field function collection officers 
or in a similar position, or employed to collect taxes using 
the automated collection system or an equivalent replacement 
system. 
‘‘(2) PROGRAM COSTS.—The term ‘program costs’ means— 
‘‘(A) total salaries (including locality pay and bonuses), 
benefits, and employment taxes for special compliance per-
sonnel employed or trained under the program described 
in subsection (a), and 
‘‘(B) direct overhead costs, salaries, benefits, and 
employment taxes relating to support staff, rental pay-
ments, office equipment and furniture, travel, data proc-
essing services, vehicle costs, utilities, telecommunications, 
postage, printing and reproduction, supplies and materials, 
lands and structures, insurance claims, and indemnities 
for special compliance personnel hired and employed under 
this section. 
For purposes of subparagraph (B), the cost of management 
and supervision of special compliance personnel shall be taken 
into account as direct overhead costs to the extent such costs, 
when included in total program costs under this paragraph, 
do not represent more than 10 percent of such total costs.’’. 
(c) CLERICAL AMENDMENT.—The table of sections for subchapter 
A of chapter 64 of the Internal Revenue Code of 1986 is amended 
by inserting after the item relating to section 6306 the following 
new item: 
‘‘Sec. 6307. Special compliance personnel program account.’’.