I 
114TH CONGRESS 
1ST SESSION H. R. 1828 
To provide a taxpayer bill of rights for small businesses. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 15, 2015 
Mr. THORNBERRY introduced the following bill; which was referred to the 
Committee on Ways and Means, and in addition to the Committee on 
Oversight and Government Reform, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 
A BILL 
To provide a taxpayer bill of rights for small businesses. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Small Business Taxpayer Bill of Rights Act of 2015’’. 
(b) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Modification of standards for awarding of costs and certain fees. 
Sec. 3. Civil damages allowed for reckless or intentional disregard of internal 
revenue laws. 
Sec. 4. Modifications relating to certain offenses by officers and employees in 
connection with revenue laws. 
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Sec. 5. Modifications relating to civil damages for unauthorized inspection or 
disclosure of returns and return information. 
Sec. 6. Interest abatement reviews. 
Sec. 7. Ban on ex parte discussions. 
Sec. 8. Alternative dispute resolution procedures. 
Sec. 9. Extension of time for contesting IRS levy. 
Sec. 10. Waiver of installment agreement fee. 
Sec. 11. Suspension of running of period for filing petition of spousal relief and 
collection cases. 
Sec. 12. Venue for appeal of spousal relief and collection cases. 
Sec. 13. Increase in monetary penalties for certain unauthorized disclosures of 
information. 
Sec. 14. De novo tax court review of claims for equitable innocent spouse relief. 
Sec. 15. Ban on raising new issues on appeal. 
Sec. 16. Limitation on enforcement of liens against principal residences. 
Sec. 17. Additional provisions relating to mandatory termination for mis-
conduct. 
Sec. 18. Extension of declaratory judgment procedures to social welfare organi-
zations. 
Sec. 19. Review by the Treasury Inspector General for Tax Administration. 
SEC. 2. MODIFICATION OF STANDARDS FOR AWARDING OF 
COSTS AND CERTAIN FEES. 
(a) SMALL BUSINESSES ELIGIBLE WITHOUT RE-
GARD TO NET WORTH.—Subparagraph (D) of section 
7430(c)(4) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘and’’ at the end of clause (i)(II), 
by striking the period at the end of clause (ii) and insert-
ing ‘‘, and’’, and by adding at the end the following new 
clause: 
‘‘(iii) in the case of an eligible small 
business, the net worth limitation in clause 
(ii) of such section shall not apply.’’. 
(b) ELIGIBLE SMALL BUSINESS.—Paragraph (4) of 
section 7430(c) of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new subpara-
graph: 
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‘‘(F) ELIGIBLE
SMALL
BUSINESS.—For 
purposes of subparagraph (D)(iii), the term ‘eli-
gible small business’ means, with respect to any 
proceeding commenced in a taxable year— 
‘‘(i) a corporation the stock of which 
is not publicly traded, 
‘‘(ii) a partnership, or 
‘‘(iii) a sole proprietorship, 
if the average annual gross receipts of such cor-
poration, partnership, or sole proprietorship for 
the 3-taxable-year period preceding such taxable 
year does not exceed $50,000,000. For pur-
poses of applying the test under the preceding 
sentence, rules similar to the rules of para-
graphs (2) and (3) of section 448(c) shall 
apply.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to proceedings commenced after 
the date of the enactment of this Act. 
SEC. 3. CIVIL DAMAGES ALLOWED FOR RECKLESS OR IN-
TENTIONAL DISREGARD OF INTERNAL REV-
ENUE LAWS. 
(a) INCREASE IN AMOUNT OF DAMAGES.—Section 
7433(b) of the Internal Revenue Code of 1986 is amended 
by striking ‘‘$1,000,000 ($100,000, in the case of neg-
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ligence)’’ and inserting ‘‘$3,000,000 ($300,000, in the 
case of negligence)’’. 
(b) EXTENSION OF TIME TO BRING ACTION.—Sec-
tion 7433(d)(3) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘2 years’’ and inserting ‘‘5 years’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to actions of employees of the In-
ternal Revenue Service after the date of the enactment 
of this Act. 
SEC. 4. MODIFICATIONS RELATING TO CERTAIN OFFENSES 
BY OFFICERS AND EMPLOYEES IN CONNEC-
TION WITH REVENUE LAWS. 
(a) INCREASE IN PENALTY.—Section 7214 of the In-
ternal Revenue Code of 1986 is amended— 
(1) by striking ‘‘$10,000’’ in subsection (a) and 
inserting ‘‘$25,000’’, and 
(2) by striking ‘‘$5,000’’ in subsection (b) and 
inserting ‘‘$10,000’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date of the enactment 
of this Act. 
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SEC. 5. MODIFICATIONS RELATING TO CIVIL DAMAGES FOR 
UNAUTHORIZED 
INSPECTION 
OR 
DISCLO-
SURE OF RETURNS AND RETURN INFORMA-
TION. 
(a) INCREASE IN AMOUNT OF DAMAGES.—Subpara-
graph (A) of section 7431(c)(1) of the Internal Revenue 
Code of 1986 is amended by striking ‘‘$1,000’’ and insert-
ing ‘‘$10,000’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to inspections and disclosure occur-
ring on and after the date of the enactment of this Act. 
SEC. 6. INTEREST ABATEMENT REVIEWS. 
(a) FILING PERIOD
FOR INTEREST ABATEMENT 
CASES.— 
(1) IN
GENERAL.—Subsection (h) of section 
6404 of the Internal Revenue Code of 1986 is 
amended— 
(A) by striking ‘‘REVIEW OF DENIAL’’ in 
the heading and inserting ‘‘JUDICIAL REVIEW’’, 
and 
(B) by striking ‘‘ ‘if such action is 
brought’ ’’ and all that follows in paragraph (1) 
and inserting ‘‘if such action is brought— 
‘‘(A) at any time after the earlier of— 
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(C) by adding at the end the following new 
paragraph: 
‘‘(3) a petition to the Tax court under section 
6404(h) in which the amount of interest abatement 
sought does not exceed $50,000.’’. 
(2) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to— 
(A) cases pending as of the day after the 
date of the enactment of this Act, and 
(B) cases commenced after such date of 
enactment. 
SEC. 7. BAN ON EX PARTE DISCUSSIONS. 
(a) 
IN
GENERAL.—Notwithstanding 
section 
1001(a)(4) of the Internal Revenue Service Restructuring 
and Reform Act of 1998, the Internal Revenue Service 
shall prohibit any ex parte communications between offi-
cers in the Internal Revenue Service Office of Appeals and 
other Internal Revenue Service employees with respect to 
any matter pending before such officers. 
(b) TERMINATION
OF
EMPLOYMENT
FOR
MIS-
CONDUCT.—Subject to subsection (c), the Commissioner 
of Internal Revenue shall terminate the employment of 
any employee of the Internal Revenue Service if there is 
a final administrative or judicial determination that such 
employee committed any act or omission prohibited under 
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subsection (a) in the performance of the employee’s official 
duties. Such termination shall be a removal for cause on 
charges of misconduct. 
(c) DETERMINATION OF COMMISSIONER.— 
(1) IN GENERAL.—The Commissioner of Inter-
nal Revenue may take a personnel action other than 
termination for an act prohibited under subsection 
(a). 
(2) DISCRETION.—The exercise of authority 
under paragraph (1) shall be at the sole discretion 
of the Commissioner of Internal Revenue and may 
not be delegated to any other officer. At the sole dis-
cretion of the Commissioner of Internal Revenue, 
such Commissioner may establish a procedure which 
will be used to determine whether an individual 
should be referred to the Commissioner of Internal 
Revenue for a determination by the Commissioner 
under paragraph (1). 
(3) NO
APPEAL.—Any determination of the 
Commissioner of Internal Revenue under this sub-
section may not be appealed in any administrative or 
judicial proceeding. 
(d) TIGTA REPORTING OF TERMINATION OR MITI-
GATION.—Section 7803(d)(1)(E) of the Internal Revenue 
Code of 1986 is amended by inserting ‘‘or section 7 of 
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the Small Business Taxpayer Bill of Rights Act of 2015’’ 
after ‘‘1998’’. 
SEC. 
8. 
ALTERNATIVE 
DISPUTE 
RESOLUTION 
PROCE-
DURES. 
(a) IN GENERAL.—Section 7123 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new subsection: 
‘‘(c) AVAILABILITY OF DISPUTE RESOLUTIONS.— 
‘‘(1) IN GENERAL.—The procedures prescribed 
under subsection (b)(1) and the pilot program estab-
lished under subsection (b)(2) shall provide that a 
taxpayer may request mediation or arbitration in 
any case unless the Secretary has specifically ex-
cluded the type of issue involved in such case or the 
class of cases to which such case belongs as not ap-
propriate for resolution under such subsection. The 
Secretary shall make any determination that ex-
cludes a type of issue or a class of cases public with-
in 5 working days and provide an explanation for 
each determination. 
‘‘(2) INDEPENDENT MEDIATORS.— 
‘‘(A) IN GENERAL.—The procedures pre-
scribed under subsection (b)(1) shall provide 
the taxpayer an opportunity to elect to have the 
mediation conducted by an independent, neutral 
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individual not employed by the Internal Rev-
enue Service Office of Appeals. 
‘‘(B) COST AND SELECTION.— 
‘‘(i) 
IN
GENERAL.—Any 
taxpayer 
making an election under subparagraph 
(A) shall be required— 
‘‘(I) to share the costs of such 
independent mediator equally with the 
Internal Revenue Service Office of 
Appeals, and 
‘‘(II) to limit the selection of the 
mediator to a roster of recognized na-
tional or local neutral mediators. 
‘‘(ii) EXCEPTION.—Clause (i)(I) shall 
not apply to any taxpayer who is an indi-
vidual or who was a small business in the 
preceding calendar year if such taxpayer 
had an adjusted gross income that did not 
exceed 250 percent of the poverty level, as 
determined in accordance with criteria es-
tablished by the Director of the Office of 
Management and Budget, in the taxable 
year preceding the request. 
‘‘(iii) SMALL
BUSINESS.—For pur-
poses of clause (ii), the term ‘small busi-
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ness’ has the meaning given such term 
under section 41(b)(3)(D)(iii). 
‘‘(3) AVAILABILITY OF PROCESS.—The proce-
dures prescribed under subsection (b)(1) and the 
pilot program established under subsection (b)(2) 
shall provide the opportunity to elect mediation or 
arbitration at the time when the case is first filed 
with the Office of Appeals and at any time before 
deliberations in the appeal commence.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect on the date of the enactment 
of this Act. 
SEC. 9. EXTENSION OF TIME FOR CONTESTING IRS LEVY. 
(a) EXTENSION OF TIME FOR RETURN OF PROPERTY 
SUBJECT TO LEVY.—Subsection (b) of section 6343 of the 
Internal Revenue Code of 1986 is amended by striking ‘‘9 
months’’ and inserting ‘‘3 years’’. 
(b) PERIOD OF LIMITATION ON SUITS.—Subsection 
(c) of section 6532 of the Internal Revenue Code of 1986 
is amended— 
(1) in paragraph (1) by striking ‘‘9 months’’ 
and inserting ‘‘3 years’’, and 
(2) in paragraph (2) by striking ‘‘9-month’’ and 
inserting ‘‘3-year’’. 
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(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 
(2) levies made on or before such date if the 9- 
month period under section 6343(b) of the Internal 
Revenue Code of 1986 (without regard to this sec-
tion) has not expired as of such date. 
SEC. 10. WAIVER OF INSTALLMENT AGREEMENT FEE. 
(a) IN GENERAL.—Section 6159 of the Internal Rev-
enue Code of 1986 is amended by redesignating subsection 
(f) as subsection (g) and by inserting after subsection (e) 
the following new subsection: 
‘‘(f) WAIVER OF INSTALLMENT AGREEMENT FEE.— 
The Secretary shall waive the fees imposed on installment 
agreements under this section for any taxpayer with an 
adjusted gross income that does not exceed 250 percent 
of the poverty level, as determined in accordance with cri-
teria established by the Director of the Office of Manage-
ment and Budget, and who has agreed to make payments 
under the installment agreement by electronic payment 
through a debit instrument.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect on the date of the enactment 
of this Act. 
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SEC. 11. SUSPENSION OF RUNNING OF PERIOD FOR FILING 
PETITION OF SPOUSAL RELIEF AND COLLEC-
TION CASES. 
(a) PETITIONS FOR SPOUSAL RELIEF.— 
(1) IN
GENERAL.—Subsection (e) of section 
6015 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new 
paragraph: 
‘‘(6) SUSPENSION OF RUNNING OF PERIOD FOR 
FILING PETITION IN TITLE 11 CASES.—In the case 
of a person who is prohibited by reason of a case 
under title 11, United States Code, from filing a pe-
tition under paragraph (1)(A) with respect to a final 
determination of relief under this section, the run-
ning of the period prescribed by such paragraph for 
filing such a petition with respect to such final de-
termination shall be suspended for the period during 
which the person is so prohibited from filing such a 
petition, and for 60 days thereafter.’’. 
(2) EFFECTIVE DATE.—The amendment made 
by this subsection shall apply to petitions filed under 
section 6015(e) of the Internal Revenue Code of 
1986 after the date of the enactment of this Act. 
(b) COLLECTION PROCEEDINGS.— 
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(1) IN
GENERAL.—Subsection (d) of section 
6330 of the Internal Revenue Code of 1986 is 
amended— 
(A) by striking ‘‘appeal such determination 
to the Tax Court’’ in paragraph (1) and insert-
ing ‘‘petition the Tax Court for review of such 
determination’’, 
(B) by striking ‘‘JUDICIAL REVIEW OF DE-
TERMINATION’’ in the heading of paragraph (1) 
and inserting ‘‘PETITION FOR REVIEW BY TAX 
COURT’’, 
(C) by redesignating paragraph (2) as 
paragraph (3), and 
(D) by inserting after paragraph (1) the 
following new paragraph: 
‘‘(2) SUSPENSION OF RUNNING OF PERIOD FOR 
FILING PETITION IN TITLE 11 CASES.—In the case 
of a person who is prohibited by reason of a case 
under title 11, United States Code, from filing a pe-
tition under paragraph (1) with respect to a deter-
mination under this section, the running of the pe-
riod prescribed by such subsection for filing such a 
petition with respect to such determination shall be 
suspended for the period during which the person is 
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so prohibited from filing such a petition, and for 30 
days thereafter.’’. 
(2) CONFORMING AMENDMENT.—Subsection (c) 
of section 6320 of such Code is amended by striking 
‘‘(2)(B)’’ and inserting ‘‘(3)(B)’’. 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to petitions filed under 
section 6330 of the Internal Revenue Code of 1986 
after the date of the enactment of this Act. 
SEC. 12. VENUE FOR APPEAL OF SPOUSAL RELIEF AND 
COLLECTION CASES. 
(a) IN GENERAL.—Paragraph (1) of section 7482(b) 
of the Internal Revenue Code of 1986 is amended— 
(1) by striking ‘‘or’’ at the end of subparagraph 
(E), 
(2) by striking the period at the end of sub-
paragraph (F)(ii) and inserting a comma, and 
(3) by inserting after subparagraph (F) the fol-
lowing new subparagraphs: 
‘‘(G) in the case of a petition under section 
6015(e), the legal residence of the petitioner, or 
‘‘(H) in the case of a petition under sec-
tion 6320 or 6330— 
‘‘(i) the legal residence of the peti-
tioner if the petitioner is an individual, and 
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‘‘(ii) the principal place of business or 
principal office or agency if the petitioner 
is an entity other than an individual.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to petitions filed after the date of 
enactment of this Act. 
SEC. 13. INCREASE IN MONETARY PENALTIES FOR CER-
TAIN UNAUTHORIZED DISCLOSURES OF IN-
FORMATION. 
(a) IN GENERAL.—Paragraphs (1), (2), (3), and (4) 
of section 7213(a) of the Internal Revenue Code of 1986 
are each amended by striking ‘‘$5,000’’ and inserting 
‘‘$10,000’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to disclosures made after the date 
of the enactment of this Act. 
SEC. 14. DE NOVO TAX COURT REVIEW OF CLAIMS FOR EQ-
UITABLE INNOCENT SPOUSE RELIEF. 
(a) IN GENERAL.—Subparagraph (A) of section 
6015(e)(1) of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new flush sen-
tence: 
‘‘Any review of a determination by the Sec-
retary with respect to a claim for equitable re-
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lief under subsection (f) shall be reviewed de 
novo by the Tax Court.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to petitions filed or pending before 
the Tax Court on and after the date of the enactment of 
this Act. 
SEC. 15. BAN ON RAISING NEW ISSUES ON APPEAL. 
(a) IN GENERAL.—Chapter 77 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new section: 
‘‘SEC. 7529. PROHIBITION ON INTERNAL REVENUE SERVICE 
RAISING NEW ISSUES IN AN INTERNAL AP-
PEAL. 
‘‘(a) IN GENERAL.—In reviewing an appeal of any 
determination initially made by the Internal Revenue 
Service, the Internal Revenue Service Office of Appeals 
may not consider or decide any issue that is not within 
the scope of the initial determination. 
‘‘(b) CERTAIN ISSUES DEEMED OUTSIDE OF SCOPE 
OF DETERMINATION.—For purposes of subsection (a), the 
following matters shall be considered to be not within the 
scope of a determination: 
‘‘(1) Any issue that was not raised in a notice 
of deficiency or an examiner’s report which is the 
subject of the appeal. 
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‘‘(2) Any deficiency in tax which was not in-
cluded in the initial determination. 
‘‘(3) Any theory or justification for a tax defi-
ciency which was not considered in the initial deter-
mination. 
‘‘(c) NO INFERENCE WITH RESPECT
TO ISSUES 
RAISED BY TAXPAYERS.—Nothing in this section shall be 
construed to provide any limitation in addition to any limi-
tations in effect on the date of the enactment of this sec-
tion on the right of a taxpayer to raise an issue, theory, 
or justification on an appeal from a determination initially 
made by the Internal Revenue Service that was not within 
the scope of the initial determination.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for chapter 77 of such Code is amended by adding at the 
end the following new item: 
‘‘Sec. 7529. Prohibition on Internal Revenue Service raising new issues in an 
internal appeal.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to matters filed or pending with 
the Internal Revenue Service Office of Appeals on or after 
the date of the enactment of this Act. 
SEC. 16. LIMITATION ON ENFORCEMENT OF LIENS AGAINST 
PRINCIPAL RESIDENCES. 
(a) IN GENERAL.—Section 7403(a) of the Internal 
Revenue Code of 1986 is amended— 
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(1) by striking ‘‘In any case’’ and inserting the 
following: 
‘‘(1) IN GENERAL.—In any case’’, and 
(2) by adding at the end the following new 
paragraph: 
‘‘(2) LIMITATION WITH RESPECT TO PRINCIPAL 
RESIDENCE.— 
‘‘(A) IN
GENERAL.—Paragraph (1) shall 
not apply to any property used as the principal 
residence of the taxpayer (within the meaning 
of section 121) unless the Secretary of the 
Treasury makes a written determination that— 
‘‘(i) all other property of the taxpayer, 
if sold, is insufficient to pay the tax or dis-
charge the liability, and 
‘‘(ii) such action will not create an 
economic hardship for the taxpayer. 
‘‘(B) DELEGATION.—For purposes of this 
paragraph, the Secretary of the Treasury may 
not delegate any responsibilities under subpara-
graph (A) to any person other than— 
‘‘(i) the Commissioner of Internal 
Revenue, or 
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‘‘(ii) a district director or assistant 
district director of the Internal Revenue 
Service.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to actions filed after the date of 
the enactment of this Act. 
SEC. 17. ADDITIONAL PROVISIONS RELATING TO MANDA-
TORY TERMINATION FOR MISCONDUCT. 
(a) TERMINATION OF UNEMPLOYMENT FOR INAP-
PROPRIATE REVIEW OF TAX-EXEMPT STATUS.—Section 
1203(b) of the Internal Revenue Service Restructuring 
and Reform Act of 1998 (26 U.S.C. 7804 note) is amend-
ed by striking ‘‘and’’ at the end of paragraph (9), by strik-
ing the period at the end of paragraph (10) and inserting 
‘‘; and’’, and by adding at the end the following new para-
graph: 
‘‘(11) in the case of any review of an applica-
tion for tax-exempt status by an organization de-
scribed in section 501(c) of the Internal Revenue 
Code of 1986, developing or using any methodology 
that applies disproportionate scrutiny to any appli-
cant based on the ideology expressed in the name or 
purpose of the organization.’’. 
(b) MANDATORY UNPAID ADMINISTRATIVE LEAVE 
FOR MISCONDUCT.—Paragraph (1) of Section 1203(c) of 
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the Internal Revenue Service Restructuring and Reform 
Act of 1998 (26 U.S.C. 7804 note) is amended by adding 
at the end the following new sentence: ‘‘Notwithstanding 
the preceding sentence, if the Commissioner of Internal 
Revenue takes a personnel action other than termination 
for an act or omission described in subsection (b), the 
Commissioner shall place the employee on unpaid adminis-
trative leave for a period of not less than 30 days.’’. 
(c) LIMITATION ON ALTERNATIVE PUNISHMENT.— 
Paragraph (1) of section 1203(c) of the Internal Revenue 
Service Restructuring and Reform Act of 1998 (26 U.S.C. 
7804 note) is amended by striking ‘‘The Commissioner’’ 
and inserting ‘‘Except in the case of an act or omission 
described in subsection (b)(3)(A), the Commissioner’’. 
SEC. 18. EXTENSION OF DECLARATORY JUDGMENT PROCE-
DURES 
TO 
SOCIAL 
WELFARE 
ORGANIZA-
TIONS. 
(a) IN GENERAL.—Section 7428(a)(1) of the Internal 
Revenue Code of 1986 is amended by striking ‘‘or’’ at the 
end of subparagraph (C) and by adding at the end the 
following new subparagraph: 
‘‘(E) with respect to the initial classifica-
tion or continuing classification of an organiza-
tion described in section 501(c)(4) which is ex-
empt from tax under section 501(a), or’’. 
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(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to pleading filed after 
the date of the enactment of this Act. 
SEC. 19. REVIEW BY THE TREASURY INSPECTOR GENERAL 
FOR TAX ADMINISTRATION. 
(a) REVIEW.—Subsection (k)(1) of section 8D of the 
Inspector General Act of 1978 (5 U.S.C. App.) is amend-
ed— 
(1) in subparagraph (C), by striking ‘‘and’’ at 
the end; 
(2) by redesignating subparagraph (D) as sub-
paragraph (E); 
(3) by inserting after subparagraph (C) the fol-
lowing new subparagraph: 
‘‘(D) shall— 
‘‘(i) review any criteria employed by 
the Internal Revenue Service to select tax 
returns (including applications for recogni-
tion of tax-exempt status) for examination 
or audit, assessment or collection of defi-
ciencies, criminal investigation or referral, 
refunds for amounts paid, or any height-
ened scrutiny or review in order to deter-
mine whether the criteria discriminates 
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against taxpayers on the basis of race, reli-
gion, or political ideology; and 
‘‘(ii) consult with the Internal Rev-
enue Service on recommended amendments 
to such criteria in order to eliminate any 
discrimination identified pursuant to the 
review described in clause (i); and’’; and 
(4) in subparagraph (E), as so redesignated, by 
striking ‘‘and (C)’’ and inserting ‘‘(C), and (D)’’. 
(b) SEMIANNUAL REPORT.—Subsection (g) of such 
section is amended by adding at the end the following new 
paragraph: 
‘‘(3) Any semiannual report made by the Treas-
ury Inspector General for Tax Administration that is 
required pursuant to section 5(a) shall include— 
‘‘(A) a statement affirming that the Treas-
ury Inspector General for Tax Administration 
has reviewed the criteria described in subsection 
(k)(1)(D) and consulted with the Internal Rev-
enue Service regarding such criteria; and 
‘‘(B) a description and explanation of any 
such criteria that was identified as discrimina-
tory by the Treasury Inspector General for Tax 
Administration.’’. 
Æ 
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