H. R. 3151—21 
SEC. 1407. MISDIRECTED TAX REFUND DEPOSITS. 
Section 6402 is amended by adding at the end the following 
new subsection: 
‘‘(n) MISDIRECTED DIRECT DEPOSIT REFUND.—Not later than 
the date which is 6 months after the date of the enactment of 
the Taxpayer First Act, the Secretary shall prescribe regulations 
to establish procedures to allow for— 
‘‘(1) taxpayers to report instances in which a refund made 
by the Secretary by electronic funds transfer was not trans-
ferred to the account of the taxpayer; 
‘‘(2) coordination with financial institutions for the purpose 
of— 
‘‘(A) identifying the accounts to which transfers 
described in paragraph (1) were made; and 
‘‘(B) recovery of the amounts so transferred; and 
‘‘(3) the refund to be delivered to the correct account of 
the taxpayer.’’. 
TITLE II—21ST CENTURY IRS 
Subtitle A—Cybersecurity and Identity 
Protection 
SEC. 2001. PUBLIC-PRIVATE PARTNERSHIP TO ADDRESS IDENTITY 
THEFT REFUND FRAUD. 
The Secretary of the Treasury (or the Secretary’s delegate) 
shall work collaboratively with the public and private sectors to 
protect taxpayers from identity theft refund fraud. 
SEC. 2002. RECOMMENDATIONS OF ELECTRONIC TAX ADMINISTRA-
TION 
ADVISORY 
COMMITTEE 
REGARDING 
IDENTITY 
THEFT REFUND FRAUD. 
The Secretary of the Treasury shall ensure that the advisory 
group convened by the Secretary pursuant to section 2001(b)(2) 
of the Internal Revenue Service Restructuring and Reform Act 
of 1998 (commonly known as the Electronic Tax Administration 
Advisory Committee) studies (including by providing organized 
public forums) and makes recommendations to the Secretary 
regarding methods to prevent identity theft and refund fraud. 
SEC. 2003. INFORMATION SHARING AND ANALYSIS CENTER. 
(a) IN GENERAL.—The Secretary of the Treasury (or the Sec-
retary’s delegate) may participate in an information sharing and 
analysis center to centralize, standardize, and enhance data com-
pilation and analysis to facilitate sharing actionable data and 
information with respect to identity theft tax refund fraud. 
(b) DEVELOPMENT OF PERFORMANCE METRICS.—The Secretary 
of the Treasury (or the Secretary’s delegate) shall develop metrics 
for measuring the success of such center in detecting and preventing 
identity theft tax refund fraud. 
(c) DISCLOSURE.— 
(1) IN GENERAL.—Section 6103(k), as amended by this Act, 
is amended by adding at the end the following new paragraph: 
‘‘(14) DISCLOSURE OF RETURN INFORMATION FOR PURPOSES 
OF CYBERSECURITY AND THE PREVENTION OF IDENTITY THEFT 
TAX REFUND FRAUD.—
H. R. 3151—22 
‘‘(A) IN GENERAL.—Under such procedures and subject 
to such conditions as the Secretary may prescribe, the 
Secretary may disclose specified return information to 
specified ISAC participants to the extent that the Secretary 
determines such disclosure is in furtherance of effective 
Federal tax administration relating to the detection or 
prevention of identity theft tax refund fraud, validation 
of taxpayer identity, authentication of taxpayer returns, 
or detection or prevention of cybersecurity threats. 
‘‘(B) SPECIFIED
ISAC
PARTICIPANTS.—For purposes of 
this paragraph— 
‘‘(i) IN GENERAL.—The term ‘specified ISAC partici-
pant’ means— 
‘‘(I) any person designated by the Secretary 
as having primary responsibility for a function 
performed with respect to the information sharing 
and analysis center described in section 2003(a) 
of the Taxpayer First Act, and 
‘‘(II) any person subject to the requirements 
of section 7216 and which is a participant in such 
information sharing and analysis center. 
‘‘(ii) INFORMATION
SHARING
AGREEMENT.—Such 
term shall not include any person unless such person 
has entered into a written agreement with the Sec-
retary setting forth the terms and conditions for the 
disclosure of information to such person under this 
paragraph, including requirements regarding the 
protection and safeguarding of such information by 
such person. 
‘‘(C) SPECIFIED
RETURN
INFORMATION.—For purposes 
of this paragraph, the term ‘specified return information’ 
means— 
‘‘(i) in the case of a return which is in connection 
with a case of potential identity theft refund fraud— 
‘‘(I) in the case of such return filed electroni-
cally, the internet protocol address, device identi-
fication, email domain name, speed of completion, 
method of authentication, refund method, and such 
other return information related to the electronic 
filing characteristics of such return as the Sec-
retary may identify for purposes of this subclause, 
and 
‘‘(II) in the case of such return prepared by 
a tax return preparer, identifying information with 
respect to such tax return preparer, including the 
preparer taxpayer identification number and elec-
tronic filer identification number of such preparer, 
‘‘(ii) in the case of a return which is in connection 
with a case of a identity theft refund fraud which 
has been confirmed by the Secretary (pursuant to such 
procedures as the Secretary may provide), the informa-
tion referred to in subclauses (I) and (II) of clause 
(i), the name and taxpayer identification number of 
the taxpayer as it appears on the return, and any 
bank account and routing information provided for 
making a refund in connection with such return, and
H. R. 3151—23 
‘‘(iii) in the case of any cybersecurity threat to 
the Internal Revenue Service, information similar to 
the information described in subclauses (I) and (II) 
of clause (i) with respect to such threat. 
‘‘(D) RESTRICTION
ON
USE
OF
DISCLOSED
INFORMA-
TION.— 
‘‘(i) DESIGNATED
THIRD
PARTIES.—Any return 
information received by a person described in subpara-
graph (B)(i)(I) shall be used only for the purposes of 
and to the extent necessary in— 
‘‘(I) performing the function such person is 
designated to perform under such subparagraph, 
‘‘(II) facilitating disclosures authorized under 
subparagraph (A) to persons described in subpara-
graph (B)(i)(II), and 
‘‘(III) facilitating disclosures authorized under 
subsection (d) to participants in such information 
sharing and analysis center. 
‘‘(ii) RETURN PREPARERS.—Any return information 
received by a person described in subparagraph 
(B)(i)(II) shall be treated for purposes of section 7216 
as information furnished to such person for, or in 
connection with, the preparation of a return of the 
tax imposed under chapter 1. 
‘‘(E) DATA
PROTECTION
AND
SAFEGUARDS.—Return 
information disclosed under this paragraph shall be subject 
to such protections and safeguards as the Secretary may 
require in regulations or other guidance or in the written 
agreement referred to in subparagraph (B)(ii). Such written 
agreement shall include a requirement that any unauthor-
ized access to information disclosed under this paragraph, 
and any breach of any system in which such information 
is held, be reported to the Treasury Inspector General 
for Tax Administration.’’. 
(2) APPLICATION OF CIVIL AND CRIMINAL PENALTIES.— 
(A) Section 6103(a)(3), as amended by this Act, is 
amended by striking ‘‘or (13)’’ and inserting ‘‘, (13), or 
(14)’’. 
(B) Section 7213(a)(2), as amended by this Act, is 
amended by striking ‘‘or (13)’’ and inserting ‘‘, (13), or 
(14)’’. 
SEC. 2004. COMPLIANCE BY CONTRACTORS WITH CONFIDENTIALITY 
SAFEGUARDS. 
(a) IN GENERAL.—Section 6103(p) is amended by adding at 
the end the following new paragraph: 
‘‘(9) DISCLOSURE TO CONTRACTORS AND OTHER AGENTS.— 
Notwithstanding any other provision of this section, no return 
or return information shall be disclosed to any contractor or 
other agent of a Federal, State, or local agency unless such 
agency, to the satisfaction of the Secretary— 
‘‘(A) has requirements in effect which require each 
such contractor or other agent which would have access 
to returns or return information to provide safeguards 
(within the meaning of paragraph (4)) to protect the con-
fidentiality of such returns or return information,
H. R. 3151—24 
‘‘(B) agrees to conduct an on-site review every 3 years 
(or a mid-point review in the case of contracts or agree-
ments of less than 3 years in duration) of each contractor 
or other agent to determine compliance with such require-
ments, 
‘‘(C) submits the findings of the most recent review 
conducted under subparagraph (B) to the Secretary as part 
of the report required by paragraph (4)(E), and 
‘‘(D) certifies to the Secretary for the most recent 
annual period that such contractor or other agent is in 
compliance with all such requirements. 
The certification required by subparagraph (D) shall include 
the name and address of each contractor or other agent, a 
description of the contract or agreement with such contractor 
or other agent, and the duration of such contract or agreement. 
The requirements of this paragraph shall not apply to disclo-
sures pursuant to subsection (n) for purposes of Federal tax 
administration.’’. 
(b) 
CONFORMING
AMENDMENT.—Section 
6103(p)(8)(B) 
is 
amended by inserting ‘‘or paragraph (9)’’ after ‘‘subparagraph (A)’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to disclosures made after December 31, 2022. 
SEC. 2005. IDENTITY PROTECTION PERSONAL IDENTIFICATION NUM-
BERS. 
(a) IN GENERAL.—Subject to subsection (b), the Secretary of 
the Treasury or the Secretary’s delegate (hereafter referred to in 
this section as the ‘‘Secretary’’) shall establish a program to issue, 
upon the request of any individual, a number which may be used 
in connection with such individual’s social security number (or 
other identifying information with respect to such individual as 
determined by the Secretary) to assist the Secretary in verifying 
such individual’s identity. 
(b) REQUIREMENTS.— 
(1) ANNUAL EXPANSION.—For each calendar year beginning 
after the date of the enactment of this Act, the Secretary 
shall provide numbers through the program described in sub-
section (a) to individuals residing in such States as the Sec-
retary deems appropriate, provided that the total number of 
States served by such program during such year is greater 
than the total number of States served by such program during 
the preceding year. 
(2) NATIONWIDE AVAILABILITY.—Not later than 5 years after 
the date of the enactment of this Act, the Secretary shall 
ensure that the program described in subsection (a) is made 
available to any individual residing in the United States. 
SEC. 2006. SINGLE POINT OF CONTACT FOR TAX-RELATED IDENTITY 
THEFT VICTIMS. 
(a) IN GENERAL.—The Secretary of the Treasury (or the Sec-
retary’s delegate) shall establish and implement procedures to 
ensure that any taxpayer whose return has been delayed or other-
wise adversely affected due to tax-related identity theft has a single 
point of contact at the Internal Revenue Service throughout the 
processing of the taxpayer’s case. The single point of contact shall 
track the taxpayer’s case to completion and coordinate with other 
Internal Revenue Service employees to resolve case issues as quickly 
as possible.
H. R. 3151—25 
(b) SINGLE POINT OF CONTACT.— 
(1) IN GENERAL.—For purposes of subsection (a), the single 
point of contact shall consist of a team or subset of specially 
trained employees who— 
(A) have the ability to work across functions to resolve 
the issues involved in the taxpayer’s case; and 
(B) shall be accountable for handling the case until 
its resolution. 
(2) TEAM OR SUBSET.—The employees included within the 
team or subset described in paragraph (1) may change as 
required to meet the needs of the Internal Revenue Service, 
provided that procedures have been established to— 
(A) ensure continuity of records and case history; and 
(B) notify the taxpayer when appropriate. 
SEC. 2007. NOTIFICATION OF SUSPECTED IDENTITY THEFT. 
(a) IN GENERAL.—Chapter 77 is amended by adding at the 
end the following new section: 
‘‘SEC. 7529. NOTIFICATION OF SUSPECTED IDENTITY THEFT. 
‘‘(a) IN GENERAL.—If the Secretary determines that there has 
been or may have been an unauthorized use of the identity of 
any individual, the Secretary shall, without jeopardizing an inves-
tigation relating to tax administration— 
‘‘(1) as soon as practicable— 
‘‘(A) notify the individual of such determination, 
‘‘(B) provide instructions on how to file a report with 
law enforcement regarding the unauthorized use, 
‘‘(C) identify any steps to be taken by the individual 
to permit law enforcement to access personal information 
of the individual during the investigation, 
‘‘(D) provide information regarding actions the indi-
vidual may take in order to protect the individual from 
harm relating to the unauthorized use, and 
‘‘(E) offer identity protection measures to the indi-
vidual, such as the use of an identity protection personal 
identification number, and 
‘‘(2) at the time the information described in paragraph 
(1) is provided (or, if not available at such time, as soon as 
practicable thereafter), issue additional notifications to such 
individual (or such individual’s designee) regarding— 
‘‘(A) whether an investigation has been initiated in 
regards to such unauthorized use, 
‘‘(B) whether the investigation substantiated an 
unauthorized use of the identity of the individual, and 
‘‘(C) whether— 
‘‘(i) any action has been taken against a person 
relating to such unauthorized use, or 
‘‘(ii) any referral has been made for criminal 
prosecution of such person and, to the extent such 
information is available, whether such person has been 
criminally charged by indictment or information. 
‘‘(b) EMPLOYMENT-RELATED IDENTITY THEFT.— 
‘‘(1) IN
GENERAL.—For purposes of this section, the 
unauthorized use of the identity of an individual includes the 
unauthorized use of the identity of the individual to obtain 
employment.
H. R. 3151—26 
‘‘(2) DETERMINATION
OF
EMPLOYMENT-RELATED
IDENTITY 
THEFT.—For purposes of this section, in making a determination 
as to whether there has been or may have been an unauthorized 
use of the identity of an individual to obtain employment, 
the Secretary shall review any information— 
‘‘(A) obtained from a statement described in section 
6051 or an information return relating to compensation 
for services rendered other than as an employee, or 
‘‘(B) provided to the Internal Revenue Service by the 
Social Security Administration regarding any statement 
described in section 6051, 
which indicates that the social security account number pro-
vided on such statement or information return does not cor-
respond with the name provided on such statement or informa-
tion return or the name on the tax return reporting the income 
which is included on such statement or information return.’’. 
(b) ADDITIONAL MEASURES.— 
(1) EXAMINATION OF BOTH PAPER AND ELECTRONIC STATE-
MENTS AND RETURNS.—The Secretary of the Treasury (or the 
Secretary’s delegate) shall examine the statements, information 
returns, and tax returns described in section 7529(b)(2) of the 
Internal Revenue Code of 1986 (as added by subsection (a)) 
for any evidence of employment-related identity theft, regard-
less of whether such statements or returns are submitted elec-
tronically or on paper. 
(2) IMPROVEMENT OF EFFECTIVE RETURN PROCESSING PRO-
GRAM WITH SOCIAL SECURITY ADMINISTRATION.—Section 232 of 
the Social Security Act (42 U.S.C. 432) is amended by inserting 
after the third sentence the following: ‘‘For purposes of carrying 
out the return processing program described in the preceding 
sentence, the Commissioner of Social Security shall request, 
not less than annually, such information described in section 
7529(b)(2) of the Internal Revenue Code of 1986 as may be 
necessary to ensure the accuracy of the records maintained 
by the Commissioner of Social Security related to the amounts 
of wages paid to, and the amounts of self-employment income 
derived by, individuals.’’. 
(3) UNDERREPORTING
OF
INCOME.—The Secretary of the 
Treasury (or the Secretary’s delegate) shall establish procedures 
to ensure that income reported in connection with the unauthor-
ized use of a taxpayer’s identity is not taken into account 
in determining any penalty for underreporting of income by 
the victim of identity theft. 
(c) CLERICAL AMENDMENT.—The table of sections for chapter 
77 is amended by adding at the end the following new item: 
‘‘Sec. 7529. Notification of suspected identity theft.’’. 
(d) EFFECTIVE DATE.—The amendments made by this section 
shall apply to determinations made after the date that is 6 months 
after the date of the enactment of this Act. 
SEC. 2008. GUIDELINES FOR STOLEN IDENTITY REFUND FRAUD CASES. 
(a) IN GENERAL.—Not later than 1 year after the date of the 
enactment of this Act, the Secretary of the Treasury (or the Sec-
retary’s delegate), in consultation with the National Taxpayer Advo-
cate, shall develop and implement publicly available guidelines 
for management of cases involving stolen identity refund fraud
H. R. 3151—27 
in a manner that reduces the administrative burden on taxpayers 
who are victims of such fraud. 
(b) STANDARDS
AND PROCEDURES TO BE CONSIDERED.—The 
guidelines described in subsection (a) may include— 
(1) standards for— 
(A) the average length of time in which a case involving 
stolen identity refund fraud should be resolved; 
(B) the maximum length of time, on average, a tax-
payer who is a victim of stolen identity refund fraud and 
is entitled to a tax refund which has been stolen should 
have to wait to receive such refund; and 
(C) the maximum number of offices and employees 
within the Internal Revenue Service with whom a taxpayer 
who is a victim of stolen identity refund fraud should 
be required to interact in order to resolve a case; 
(2) standards for opening, assigning, reassigning, or closing 
a case involving stolen identity refund fraud; and 
(3) procedures for implementing and accomplishing the 
standards described in paragraphs (1) and (2), and measures 
for evaluating such procedures and determining whether such 
standards have been successfully implemented. 
SEC. 2009. INCREASED PENALTY FOR IMPROPER DISCLOSURE OR USE 
OF INFORMATION BY PREPARERS OF RETURNS. 
(a) IN GENERAL.—Section 6713 is amended— 
(1) by redesignating subsections (b) and (c) as subsections 
(c) and (d), respectively; and 
(2) by inserting after subsection (a) the following new sub-
section: 
‘‘(b) ENHANCED PENALTY FOR IMPROPER USE OR DISCLOSURE 
RELATING TO IDENTITY THEFT.— 
‘‘(1) IN
GENERAL.—In the case of a disclosure or use 
described in subsection (a) that is made in connection with 
a crime relating to the misappropriation of another person’s 
taxpayer identity (as defined in section 6103(b)(6)), whether 
or not such crime involves any tax filing, subsection (a) shall 
be applied— 
‘‘(A) by substituting ‘$1,000’ for ‘$250’, and 
‘‘(B) by substituting ‘$50,000’ for ‘$10,000’. 
‘‘(2) SEPARATE
APPLICATION
OF
TOTAL
PENALTY
LIMITA-
TION.—The limitation on the total amount of the penalty under 
subsection (a) shall be applied separately with respect to disclo-
sures or uses to which this subsection applies and to which 
it does not apply.’’. 
(b) CRIMINAL PENALTY.—Section 7216(a) is amended by striking 
‘‘$1,000’’ and inserting ‘‘$1,000 ($100,000 in the case of a disclosure 
or use to which section 6713(b) applies)’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to disclosures or uses on or after the date of the 
enactment of this Act.
H. R. 3151—28 
Subtitle B—Development of Information 
Technology 
SEC. 2101. MANAGEMENT OF INTERNAL REVENUE SERVICE INFORMA-
TION TECHNOLOGY. 
(a) DUTIES
AND
RESPONSIBILITIES
OF
INTERNAL
REVENUE 
SERVICE CHIEF INFORMATION OFFICER.—Section 7803, as amended 
by section 1001, is amended by adding at the end the following 
new subsection: 
‘‘(f) 
INTERNAL
REVENUE
SERVICE
CHIEF
INFORMATION 
OFFICER.— 
‘‘(1) IN GENERAL.—There shall be in the Internal Revenue 
Service an Internal Revenue Service Chief Information Officer 
(hereafter referred to in this subsection as the ‘IRS CIO’) who 
shall be appointed by the Commissioner of Internal Revenue. 
‘‘(2) CENTRALIZED RESPONSIBILITY FOR INTERNAL REVENUE 
SERVICE
INFORMATION
TECHNOLOGY.—The Commissioner of 
Internal Revenue (and the Secretary) shall act through the 
IRS CIO with respect to all development, implementation, and 
maintenance of information technology for the Internal Revenue 
Service. Any reference in this subsection to the IRS CIO which 
directs the IRS CIO to take any action, or to assume any 
responsibility, shall be treated as a reference to the Commis-
sioner of Internal Revenue acting through the IRS CIO. 
‘‘(3) GENERAL DUTIES AND RESPONSIBILITIES.—The IRS CIO 
shall— 
‘‘(A) be responsible for the development, implementa-
tion, and maintenance of information technology for the 
Internal Revenue Service, 
‘‘(B) ensure that the information technology of the 
Internal Revenue Service is secure and integrated, 
‘‘(C) maintain operational control of all information 
technology for the Internal Revenue Service, 
‘‘(D) be the principal advocate for the information tech-
nology needs of the Internal Revenue Service, and 
‘‘(E) consult with the Chief Procurement Officer of the 
Internal Revenue Service to ensure that the information 
technology acquired for the Internal Revenue Service is 
consistent with— 
‘‘(i) the goals and requirements specified in sub-
paragraphs (A) through (D), and 
‘‘(ii) the strategic plan developed under paragraph 
(4). 
‘‘(4) STRATEGIC PLAN.— 
‘‘(A) IN
GENERAL.—The IRS CIO shall develop and 
implement a multiyear strategic plan for the information 
technology needs of the Internal Revenue Service. Such 
plan shall— 
‘‘(i) include performance measurements of such 
technology and of the implementation of such plan, 
‘‘(ii) include a plan for an integrated enterprise 
architecture of the information technology of the 
Internal Revenue Service, 
‘‘(iii) include and take into account the resources 
needed to accomplish such plan,
H. R. 3151—29 
‘‘(iv) take into account planned major acquisitions 
of information technology by the Internal Revenue 
Service, and 
‘‘(v) align with the needs and strategic plan of 
the Internal Revenue Service. 
‘‘(B) PLAN UPDATES.—The IRS CIO shall, not less fre-
quently than annually, review and update the strategic 
plan under subparagraph (A) (including the plan for an 
integrated enterprise architecture described in subpara-
graph (A)(ii)) to take into account the development of new 
information technology and the needs of the Internal Rev-
enue Service. 
‘‘(5) SCOPE OF AUTHORITY.— 
‘‘(A) INFORMATION TECHNOLOGY.—For purposes of this 
subsection, the term ‘information technology’ has the 
meaning given such term by section 11101 of title 40, 
United States Code. 
‘‘(B) INTERNAL
REVENUE
SERVICE.—Any reference in 
this subsection to the Internal Revenue Service includes 
a reference to all components of the Internal Revenue 
Service, including— 
‘‘(i) the Office of the Taxpayer Advocate, 
‘‘(ii) the Criminal Investigation Division of the 
Internal Revenue Service, and 
‘‘(iii) except as otherwise provided by the Secretary 
with respect to information technology related to mat-
ters described in subsection (b)(3)(B), the Office of the 
Chief Counsel.’’. 
(b) INDEPENDENT VERIFICATION AND VALIDATION OF THE CUS-
TOMER ACCOUNT DATA ENGINE 2 AND ENTERPRISE CASE MANAGE-
MENT SYSTEM.— 
(1) IN GENERAL.—The Commissioner of Internal Revenue 
shall enter into a contract with an independent reviewer to 
verify and validate the implementation plans (including the 
performance milestones and cost estimates included in such 
plans) developed for the Customer Account Data Engine 2 
and the Enterprise Case Management System. 
(2) DEADLINE
FOR
COMPLETION.—Such contract shall 
require that such verification and validation be completed not 
later than the date which is 1 year after the date of the 
enactment of this Act. 
(3) APPLICATION TO PHASES OF CADE 2.— 
(A) IN
GENERAL.—Paragraphs (1) and (2) shall not 
apply to phase 1 of the Customer Account Data Engine 
2 and shall apply separately to each other phase. 
(B) DEADLINE FOR COMPLETING PLANS.—Not later than 
1 year after the date of the enactment of this Act, the 
Commissioner of Internal Revenue shall complete the 
development of plans for all phases of the Customer 
Account Data Engine 2. 
(C) DEADLINE FOR COMPLETION OF VERIFICATION AND 
VALIDATION
OF
PLANS.—In the case of any phase after 
phase 2 of the Customer Account Data Engine 2, paragraph 
(2) shall be applied by substituting ‘‘the date on which 
the plan for such phase was completed’’ for ‘‘the date of 
the enactment of this Act’’.
H. R. 3151—30 
(c) COORDINATION
OF IRS CIO AND CHIEF PROCUREMENT 
OFFICER OF THE INTERNAL REVENUE SERVICE.— 
(1) IN
GENERAL.—The Chief Procurement Officer of the 
Internal Revenue Service shall— 
(A) identify all significant IRS information technology 
acquisitions and provide written notification to the Internal 
Revenue Service Chief Information Officer (hereafter 
referred to in this subsection as the ‘‘IRS CIO’’) of each 
such acquisition in advance of such acquisition, and 
(B) regularly consult with the IRS CIO regarding 
acquisitions of information technology for the Internal Rev-
enue Service, including meeting with the IRS CIO 
regarding such acquisitions upon request. 
(2) SIGNIFICANT
IRS
INFORMATION
TECHNOLOGY
ACQUISI-
TIONS.—For purposes of this subsection, the term ‘‘significant 
IRS information technology acquisitions’’ means— 
(A) any acquisition of information technology for the 
Internal Revenue Service in excess of $1 million; and 
(B) such other acquisitions of information technology 
for the Internal Revenue Service (or categories of such 
acquisitions) as the IRS CIO, in consultation with the 
Chief Procurement Officer of the Internal Revenue Service, 
may identify. 
(3) SCOPE.—Terms used in this subsection which are also 
used in section 7803(f) of the Internal Revenue Code of 1986 
(as added by subsection (a)) shall have the same meaning 
as when used in such section. 
SEC. 2102. INTERNET PLATFORM FOR FORM 1099 FILINGS. 
(a) IN GENERAL.—Not later than January 1, 2023, the Secretary 
of the Treasury or the Secretary’s delegate (hereafter referred to 
in this section as the ‘‘Secretary’’) shall make available an internet 
website or other electronic media, with a user interface and 
functionality similar to the Business Services Online Suite of Serv-
ices provided by the Social Security Administration, that provides 
access to resources and guidance provided by the Internal Revenue 
Service and allows persons to— 
(1) prepare and file Forms 1099; 
(2) prepare Forms 1099 for distribution to recipients other 
than the Internal Revenue Service; and 
(3) maintain a record of completed, filed, and distributed 
Forms 1099. 
(b) ELECTRONIC SERVICES TREATED AS SUPPLEMENTAL; APPLICA-
TION OF SECURITY STANDARDS.—The Secretary shall ensure that 
the services described in subsection (a)— 
(1) are a supplement to, and not a replacement for, other 
services provided by the Internal Revenue Service to taxpayers; 
and 
(2) comply with applicable security standards and guide-
lines. 
SEC. 2103. STREAMLINED CRITICAL PAY AUTHORITY FOR INFORMA-
TION TECHNOLOGY POSITIONS. 
(a) IN GENERAL.—Subchapter A of chapter 80 is amended by 
adding at the end the following new section:
H. R. 3151—31 
‘‘SEC. 7812. STREAMLINED CRITICAL PAY AUTHORITY FOR INFORMA-
TION TECHNOLOGY POSITIONS. 
‘‘In the case of any position which is critical to the functionality 
of the information technology operations of the Internal Revenue 
Service— 
‘‘(1) section 9503 of title 5, United States Code, shall be 
applied— 
‘‘(A) by substituting ‘during the period beginning on 
the date of the enactment of section 7812 of the Internal 
Revenue Code of 1986, and ending on September 30, 2025’ 
for ‘Before September 30, 2013 in subsection (a)’, 
‘‘(B) without regard to subparagraph (B) of subsection 
(a)(1), and 
‘‘(C) by substituting ‘the date of the enactment of the 
Taxpayer First Act’ for ‘June 1, 1998’ in subsection (a)(6), 
‘‘(2) section 9504 of such title 5 shall be applied by sub-
stituting ‘During the period beginning on the date of the enact-
ment of section 7812 of the Internal Revenue Code of 1986, 
and ending on September 30, 2025’ for ‘Before September 30, 
2013’ each place it appears in subsections (a) and (b), and 
‘‘(3) section 9505 of such title shall be applied— 
‘‘(A) by substituting ‘During the period beginning on 
the date of the enactment of section 7812 of the Internal 
Revenue Code of 1986, and ending on September 30, 2025’ 
for ‘Before September 30, 2013’ in subsection (a), and 
‘‘(B) by substituting ‘the information technology oper-
ations’ for ‘significant functions’ in subsection (a).’’. 
(b) CLERICAL AMENDMENT.—The table of sections for subchapter 
A of chapter 80 is amended by adding at the end the following 
new item: 
‘‘Sec. 7812. Streamlined critical pay authority for information technology posi-
tions.’’. 
Subtitle C—Modernization of Consent- 
Based Income Verification System 
SEC. 2201. DISCLOSURE OF TAXPAYER INFORMATION FOR THIRD- 
PARTY INCOME VERIFICATION. 
(a) IN GENERAL.—Not later than 1 year after the close of 
the 2-year period described in subsection (d)(1), the Secretary of 
the Treasury or the Secretary’s delegate (hereafter referred to in 
this section as the ‘‘Secretary’’) shall implement a program to ensure 
that any qualified disclosure— 
(1) is fully automated and accomplished through the inter-
net; and 
(2) is accomplished in as close to real-time as is practicable. 
(b) QUALIFIED DISCLOSURE.—For purposes of this section, the 
term ‘‘qualified disclosure’’ means a disclosure under section 6103(c) 
of the Internal Revenue Code of 1986 of returns or return informa-
tion by the Secretary to a person seeking to verify the income 
or creditworthiness of a taxpayer who is a borrower in the process 
of a loan application. 
(c) APPLICATION OF SECURITY STANDARDS.—The Secretary shall 
ensure that the program described in subsection (a) complies with 
applicable security standards and guidelines.
H. R. 3151—32 
(d) USER FEE.— 
(1) IN GENERAL.—During the 2-year period beginning on 
the first day of the sixth calendar month beginning after the 
date of the enactment of this Act, the Secretary shall assess 
and collect a fee for qualified disclosures (in addition to any 
other fee assessed and collected for such disclosures) at such 
rates as the Secretary determines are sufficient to cover the 
costs related to implementing the program described in sub-
section (a), including the costs of any necessary infrastructure 
or technology. 
(2) DEPOSIT OF COLLECTIONS.—Amounts received from fees 
assessed and collected under paragraph (1) shall be deposited 
in, and credited to, an account solely for the purpose of carrying 
out the activities described in subsection (a). Such amounts 
shall be available to carry out such activities without need 
of further appropriation and without fiscal year limitation. 
SEC. 2202. LIMIT REDISCLOSURES AND USES OF CONSENT-BASED 
DISCLOSURES OF TAX RETURN INFORMATION. 
(a) IN GENERAL.—Section 6103(c) is amended by adding at 
the end the following: ‘‘Persons designated by the taxpayer under 
this subsection to receive return information shall not use the 
information for any purpose other than the express purpose for 
which consent was granted and shall not disclose return information 
to any other person without the express permission of, or request 
by, the taxpayer.’’. 
(b) APPLICATION OF PENALTIES.—Section 6103(a)(3) is amended 
by inserting ‘‘subsection (c),’’ after ‘‘return information under’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to disclosures made after the date which is 180 days 
after the date of the enactment of this Act. 
Subtitle D—Expanded Use of Electronic 
Systems 
SEC. 2301. ELECTRONIC FILING OF RETURNS. 
(a) IN GENERAL.—Section 6011(e)(2)(A) is amended by striking 
‘‘250’’ and inserting ‘‘the applicable number of’’. 
(b) APPLICABLE
NUMBER.—Section 6011(e) is amended by 
striking paragraph (5) and inserting the following new paragraphs: 
‘‘(5) APPLICABLE NUMBER.— 
‘‘(A) IN GENERAL.—For purposes of paragraph (2)(A), 
the applicable number shall be— 
‘‘(i) except as provided in subparagraph (B), in 
the case of calendar years before 2021, 250, 
‘‘(ii) in the case of calendar year 2021, 100, and 
‘‘(iii) in the case of calendar years after 2021, 10. 
‘‘(B) SPECIAL RULE FOR PARTNERSHIPS FOR 2018, 2019, 
2020, AND 2021.—In the case of a partnership, for any cal-
endar year before 2022, the applicable number shall be— 
‘‘(i) in the case of calendar year 2018, 200, 
‘‘(ii) in the case of calendar year 2019, 150, 
‘‘(iii) in the case of calendar year 2020, 100, and 
‘‘(iv) in the case of calendar year 2021, 50. 
‘‘(6) PARTNERSHIPS
REQUIRED
TO
FILE
ON
MAGNETIC 
MEDIA.—Notwithstanding paragraph (2)(A), the Secretary shall
H. R. 3151—33 
require partnerships having more than 100 partners to file 
returns on magnetic media.’’. 
(c) RETURNS FILED
BY
A TAX RETURN PREPARER.—Section 
6011(e)(3) is amended by adding at the end the following new 
subparagraph: 
‘‘(D) EXCEPTION FOR CERTAIN PREPARERS LOCATED IN 
AREAS
WITHOUT
INTERNET
ACCESS.—The Secretary may 
waive the requirement of subparagraph (A) if the Secretary 
determines, on the basis of an application by the tax return 
preparer, that the preparer cannot meet such requirement 
by reason of being located in a geographic area which 
does not 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 having more than 100 partners)’’ 
and inserting ‘‘the applicable number (determined under section 
6011(e)(5) with respect 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 ELECTRONIC SIGNA-
TURES FOR DISCLOSURE AUTHORIZATIONS TO, AND 
OTHER AUTHORIZATIONS OF, PRACTITIONERS. 
Section 6061(b)(3) is amended to read as follows: 
‘‘(3) PUBLISHED GUIDANCE.— 
‘‘(A) IN GENERAL.—The Secretary shall publish guid-
ance as appropriate to define and implement any waiver 
of the signature requirements or any method adopted under 
paragraph (1). 
‘‘(B) 
ELECTRONIC
SIGNATURES
FOR
DISCLOSURE 
AUTHORIZATIONS
TO, 
AND
OTHER
AUTHORIZATIONS
OF, 
PRACTITIONERS.—Not later than 6 months after the date 
of the enactment of this subparagraph, the Secretary shall 
publish guidance to establish uniform standards and proce-
dures for the acceptance of taxpayers’ signatures appearing 
in electronic form with respect to any request for disclosure 
of a taxpayer’s return or return information under section 
6103(c) to a practitioner or any power of attorney granted 
by a taxpayer to a practitioner. 
‘‘(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 fol-
lowing: ‘‘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. Not-
withstanding the preceding sentence, the Secretary shall seek to 
minimize the amount of any fee or other consideration that the 
Secretary pays under any such contract.’’.
H. R. 3151—34 
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 Secretary’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 COMPLI-
ANCE PROCEDURES AND REPORTS. 
Section 2004 of the Internal Revenue Service Restructuring 
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 comprehensive training strategy for 
employees of the Internal Revenue Service, including— 
(1) a plan to streamline current training processes, 
including an assessment of the utility of further consolidating 
internal training programs, technology, 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 employees; 
(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 Internal Revenue 
Service; and 
(5) a thorough assessment of the funding necessary to 
implement such strategy. 
TITLE III—MISCELLANEOUS 
PROVISIONS 
Subtitle A—Reform of Laws Governing 
Internal Revenue Service 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 adding at the 
end the following new subsection: 
‘‘(d) PROHIBITION
ON REHIRING EMPLOYEES INVOLUNTARILY 
SEPARATED.—The Commissioner may not hire any individual pre-
viously employed by the Commissioner who was removed for mis-
conduct under this subchapter or chapter 43 or chapter 75 of