I 
114TH CONGRESS 
1ST SESSION H. R. 4128 
To amend the Internal Revenue Code of 1986 to provide taxpayer protection 
and assistance, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 30, 2015 
Mr. BECERRA introduced the following bill; which was referred to the Com-
mittee on Ways and Means, and in addition to the Committee on Finan-
cial Services, for a period to be subsequently determined by the Speaker, 
in each case for consideration of such provisions as fall within the juris-
diction of the committee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to provide 
taxpayer protection and assistance, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; ETC. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Taxpayer Rights Act of 2015’’. 
(b) AMENDMENT OF 1986 CODE.—Except as other-
wise expressly provided, whenever in this Act an amend-
ment or repeal is expressed in terms of an amendment 
to, or repeal of, a section or other provision, the reference 
VerDate Sep 11 2014 
02:59 Dec 01, 2015
Jkt 059200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H4128.IH
H4128
smartinez on DSK4TPTVN1PROD with BILLS
shall be considered to be made to a section or other provi-
sion of the Internal Revenue Code of 1986, as amended. 
(c) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows: 
Sec. 1. Short title; etc. 
TITLE I—TAXPAYER RIGHTS 
Sec. 101. Statement of taxpayer rights. 
TITLE II—PREPARATION OF TAX RETURNS 
Sec. 201. Programs for the benefit of low-income taxpayers. 
Sec. 202. Regulation of tax return preparers. 
Sec. 203. Preparer penalties with respect to preparation of returns and other 
submissions. 
Sec. 204. Clarification of enrolled agent credentials. 
Sec. 205. Limit redisclosures and uses of consent-based disclosures of tax re-
turn information. 
TITLE III—IMPROVING IRS PROCEDURES 
Sec. 301. Modifications to lien notice filing procedures. 
Sec. 302. Modification of requirements relating to tax lien information con-
tained in consumer credit reports. 
Sec. 303. De novo tax court review of innocent spouse relief determinations. 
Sec. 304. Release of Federal tax levies which cause business hardship. 
Sec. 305. Removal of nonpayment period from list of triggering events for re-
turns relating to cancellation of indebtedness. 
Sec. 306. Special rules for levies that attach to a fixed and determinable right. 
Sec. 307. Rules related to levies on qualified retirement plans. 
Sec. 308. Taxpayer rights training. 
Sec. 309. Notice and opportunity for hearing by the Office of Appeals. 
TITLE IV—NATIONAL TAXPAYER ADVOCATE 
Sec. 401. Modifications relating to taxpayer assistance orders. 
Sec. 402. Taxpayer advocate directives. 
Sec. 403. Office of the Taxpayer Advocate Access to Administrative Files. 
Sec. 404. Office of the Taxpayer Advocate operations during a lapse in appro-
priations. 
TITLE I—TAXPAYER RIGHTS 
SEC. 101. STATEMENT OF TAXPAYER RIGHTS. 
(a) IN GENERAL.—Chapter 77 is amended by adding 
at the end the following new section: 
VerDate Sep 11 2014 
02:59 Dec 01, 2015
Jkt 059200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H4128.IH
H4128
smartinez on DSK4TPTVN1PROD with BILLS
‘‘SEC. 7529. STATEMENT OF TAXPAYER RIGHTS. 
‘‘(a) IN GENERAL.—The Secretary shall— 
‘‘(1) in consultation with the National Taxpayer 
Advocate, publish a summary statement of primary 
taxpayer rights (as described in subsection (b)), and 
‘‘(2) in coordination with the Commissioner of 
the Internal Revenue Service, ensure that the em-
ployees of the Internal Revenue Service are familiar 
with and act in accordance with such rights. 
‘‘(b) STATEMENT
OF RIGHTS.—The statement of 
rights is as follows: 
‘‘(1) Right to be informed. 
‘‘(2) Right to quality service. 
‘‘(3) Right to pay no more than the correct 
amount of tax. 
‘‘(4) Right to challenge the position of the In-
ternal Revenue Service and be heard. 
‘‘(5) Right of appeal from a decision of the In-
ternal Revenue Service in an independent forum. 
‘‘(6) Right to finality. 
‘‘(7) Right to privacy. 
‘‘(8) Right to confidentiality. 
‘‘(9) Right to retain representation. 
‘‘(10) Right to a fair and just tax system, in-
cluding access to the Taxpayer Advocate Service.’’. 
VerDate Sep 11 2014 
02:59 Dec 01, 2015
Jkt 059200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H4128.IH
H4128
smartinez on DSK4TPTVN1PROD with BILLS
(b) CLERICAL AMENDMENT.—The table of sections 
for chapter 77 is amended by adding at the end the fol-
lowing new item: 
‘‘Sec. 7529. Statement of taxpayer rights.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect 180 days after the date of 
the enactment of this Act. 
TITLE II—PREPARATION OF TAX 
RETURNS 
SEC. 201. PROGRAMS FOR THE BENEFIT OF LOW-INCOME 
TAXPAYERS. 
(a) GRANTS TO FACILITATE NATIONWIDE AVAIL-
ABILITY OF VOLUNTEER INCOME TAX ASSISTANCE FOR 
LOW-INCOME AND UNDERSERVED POPULATIONS.— 
(1) IN GENERAL.—The Secretary, through the 
Internal Revenue Service, shall establish a Commu-
nity Volunteer Income Tax Assistance Matching 
Grant Program (hereinafter in this subsection re-
ferred to as the ‘‘VITA grant program’’). Except as 
otherwise provided in this subsection, the VITA 
grant program shall be administered in a manner 
which is substantially similar to the Community Vol-
unteer Income Tax Assistance matching grants dem-
onstration program established under title I of divi-
sion D of the Consolidated Appropriations Act, 
2008. 
VerDate Sep 11 2014 
02:59 Dec 01, 2015
Jkt 059200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H4128.IH
H4128
smartinez on DSK4TPTVN1PROD with BILLS
(2) MATCHING GRANTS.— 
(A) IN
GENERAL.—The Secretary shall 
make available grants under the VITA grant 
program to provide matching funds for the de-
velopment, expansion, or continuation of quali-
fied return preparation programs assisting low- 
income taxpayers and members of underserved 
populations. 
(B) APPLICATION.—In order to be eligible 
for a grant under this subsection, a qualified 
return preparation program shall submit an ap-
plication to the Secretary at such time, in such 
manner, and containing such information as the 
Secretary may reasonably require for each fiscal 
year. 
(C) PRIORITY.—In awarding grants under 
this subsection, the Secretary shall give priority 
to applications— 
(i) demonstrating assistance to low-in-
come taxpayers, with emphasis on outreach 
to and services for such taxpayers, 
(ii) demonstrating taxpayer outreach 
and education around available income 
supports and refundable credits such as 
the earned income tax credit under section 
VerDate Sep 11 2014 
02:59 Dec 01, 2015
Jkt 059200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H4128.IH
H4128
smartinez on DSK4TPTVN1PROD with BILLS
32 of the Internal Revenue Code of 1986, 
and 
(iii) demonstrating specific outreach 
and focus on one or more underserved pop-
ulations. 
(D) USE
OF
FUNDS.—Qualified return 
preparation programs receiving a grant under 
this subsection may use the grant for— 
(i) ordinary and necessary costs asso-
ciated with program operation in accord-
ance with Cost Principles Circulars as set 
forth by the Office of Management and 
Budget, including— 
(I) for wages or salaries of per-
sons coordinating the activities of the 
program, 
(II) to develop training materials, 
conduct training, and perform quality 
reviews of the returns, and 
(III) for equipment purchases 
and vehicle-related expenses associ-
ated with remote or rural tax prepara-
tion services, 
(ii) outreach and educational activities 
relating to eligibility and availability of in-
VerDate Sep 11 2014 
02:59 Dec 01, 2015
Jkt 059200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H4128.IH
H4128
smartinez on DSK4TPTVN1PROD with BILLS
come supports available through the Inter-
nal Revenue Code of 1986, such as the 
earned income tax credit, and 
(iii) services related to financial edu-
cation and capability, asset development, 
and the establishment of savings accounts 
in connection with tax return preparation. 
(E) DURATION OF GRANTS.— 
(i) IN GENERAL.—Except as provided 
in clause (ii), a grant awarded under this 
subsection shall be for a period of 1 year 
and shall not be renewed other than 
through an application under subpara-
graph (B). 
(ii) EXTENDED
GRANTS.—The Sec-
retary may award a grant under this sub-
section for a period of not more than 3 
years to any qualified return preparation 
program which— 
(I) received a grant under this 
subsection for the preceding year, and 
(II) received a score of 90 per-
cent or better on a technical evalua-
tion. 
VerDate Sep 11 2014 
02:59 Dec 01, 2015
Jkt 059200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H4128.IH
H4128
smartinez on DSK4TPTVN1PROD with BILLS
(F) USE OF GRANTS FOR OVERHEAD EX-
PENSES PROHIBITED.—No grant made under 
this subsection may be used for overhead ex-
penses that are not directly related to any 
qualified return preparation program. 
(3) PROMOTION AND REFERRAL.— 
(A) PROMOTION.—The Secretary shall pro-
mote the benefits of, and encourage the use of, 
tax preparation through the Volunteer Income 
Tax Assistance program through the use of 
mass communications, referrals, and other 
means. 
(B) INTERNAL REVENUE SERVICE REFER-
RALS.—The Secretary may refer taxpayers to 
qualified return preparation programs receiving 
funding under this subsection. 
(C) VITA GRANTEE REFERRAL.—Qualified 
return preparation programs receiving a grant 
under this subsection are encouraged to refer, 
as appropriate, to local or regional Low Income 
Tax Clinics individuals who are eligible to re-
ceive services at such clinics. 
(4) AUTHORIZATION OF APPROPRIATIONS.— 
(A) IN GENERAL.—For each of fiscal years 
2016, 2017, 2018, 2019, and 2020, there are 
VerDate Sep 11 2014 
02:59 Dec 01, 2015
Jkt 059200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H4128.IH
H4128
smartinez on DSK4TPTVN1PROD with BILLS
authorized to be appropriated $30,000,000 to 
carry out the purposes of this subsection. 
(B) RESERVATION.—From the funds ap-
propriated under subparagraph (A) for any fis-
cal year, the Secretary shall reserve not more 
than 3 percent for administration of the pro-
gram. 
(C) 
AVAILABILITY.—Amounts 
appro-
priated pursuant to the authority of subpara-
graph (A) shall remain available without fiscal 
year limitation until expended. 
(b) NATIONAL CENTER TO PROMOTE QUALITY, EX-
CELLENCE, AND EVALUATION IN VOLUNTEER INCOME 
TAX ASSISTANCE.— 
(1) NATIONAL CENTER TO PROMOTE QUALITY, 
EXCELLENCE, AND EVALUATION IN VOLUNTEER IN-
COME TAX ASSISTANCE.— 
(A) ESTABLISHMENT.—There is hereby es-
tablished the National Center to Promote Qual-
ity, Excellence, and Evaluation in Volunteer In-
come Tax Assistance (hereinafter in this sub-
section referred to as the ‘‘Center’’). 
(B) PURPOSE.—The Center shall— 
(i) promote the adoption of a univer-
sally accessible volunteer training platform 
VerDate Sep 11 2014 
02:59 Dec 01, 2015
Jkt 059200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H4128.IH
H4128
smartinez on DSK4TPTVN1PROD with BILLS
for the preparation of Federal income tax 
returns, 
(ii) provide capacity-building technical 
assistance to qualified return preparation 
program managers, 
(iii) identify and disseminate best 
practices related to tax site management 
emerging from States, community-based 
organizations, nonprofit providers, and 
local government entities, 
(iv) support outreach and marketing 
efforts to encourage the use of qualified re-
turn preparation programs receiving fund-
ing under subsection (a), and 
(v) provide evaluation of programs 
and activities funded under this section, in-
cluding— 
(I) identification, both in aggre-
gate and disaggregate, of gaps in 
services for low-income taxpayers and 
underserved populations, and 
(II) independent evaluation of 
progress toward program objectives, 
as defined by the Secretary. 
(C) ADMINISTRATION.— 
VerDate Sep 11 2014 
02:59 Dec 01, 2015
Jkt 059200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H4128.IH
H4128
smartinez on DSK4TPTVN1PROD with BILLS
(i) 
IN
GENERAL.—The 
Secretary 
shall— 
(I) designate, through a competi-
tive process, one qualified entity to be 
the lead national organization, and 
(II) provide an annual grant to 
the lead national organization des-
ignated under subclause (I). 
(ii) DUTIES OF LEAD NATIONAL OR-
GANIZATION.—The lead national organiza-
tion shall use funds provided through the 
grant in clause (i)(II) to— 
(I) carry out the purposes of the 
Center, and 
(II) make subgrants as provided 
in paragraph (2). 
(2) SUBGRANTS.— 
(A) IN GENERAL.—The lead national orga-
nization shall make available subgrants to eligi-
ble organizations to facilitate specialized tech-
nical assistance in reaching one or more under-
served populations. 
(B) ELIGIBLE
ORGANIZATION.—For pur-
poses of this paragraph, the term ‘‘eligible orga-
nization’’ means any organization which— 
VerDate Sep 11 2014 
02:59 Dec 01, 2015
Jkt 059200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H4128.IH
H4128
smartinez on DSK4TPTVN1PROD with BILLS
(i) is described in section 501(c) of 
the Internal Revenue Code of 1986 and ex-
empt from tax under section 501(a) of 
such Code, 
(ii) has, to the satisfaction of the lead 
national organization, demonstrated exper-
tise and evidenced-based practices in spe-
cialized outreach to, and service of, one or 
more underserved populations, and 
(iii) has, to the satisfaction of the lead 
national organization, demonstrated exper-
tise in the provision of specialized technical 
assistance relating to qualified return prep-
aration programs for one or more targeted 
underserved populations. 
(C) APPLICATION.—In order to be eligible 
for a subgrant under this paragraph, an eligible 
organization shall submit an application to the 
lead national organization at such time, in such 
manner, and containing such information as the 
lead national organization may reasonably re-
quire for each fiscal year. 
(D) USE OF FUNDS.—An eligible organiza-
tion which receives a subgrant under this para-
graph shall assist the Center by— 
VerDate Sep 11 2014 
02:59 Dec 01, 2015
Jkt 059200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H4128.IH
H4128
smartinez on DSK4TPTVN1PROD with BILLS
(i) providing technical assistance to 
qualified return preparation programs with 
targeted outreach and assistance to one or 
more underserved populations, and 
(ii) including strategies for the provi-
sion of technical assistance targeting indi-
viduals and families with annual household 
earnings at or below 250 percent of the 
poverty line within the underserved popu-
lations served by the subgrant. 
(E) SUBGRANT AMOUNT.— 
(i) IN GENERAL.—Each year, the lead 
national organization shall make available 
subgrants which, in the aggregate, do not 
exceed 40 percent of the grant received 
under paragraph (1). 
(ii) UNDERSERVED
POPULATIONS.— 
Of the amount of subgrants provided 
under clause (i)— 
(I) not less than 25 percent shall 
be dedicated to specialized technical 
assistance in serving taxpayers with 
disabilities, 
(II) not less than 25 percent 
shall be dedicated to specialized tech-
VerDate Sep 11 2014 
02:59 Dec 01, 2015
Jkt 059200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H4128.IH
H4128
smartinez on DSK4TPTVN1PROD with BILLS
nical assistance in serving limited 
English speaking taxpayers, and 
(III) not less than 25 percent 
shall be dedicated to specialized tech-
nical assistance in serving Native 
American taxpayers. 
(F) 
DURATION
OF
SUBGRANTS.—A 
subgrant awarded under this paragraph shall be 
for a period of 1 year and shall not be renewed 
other than through an application under sub-
paragraph (C). 
(3) AUTHORIZATION OF APPROPRIATIONS.— 
(A) IN GENERAL.—For each of fiscal years 
2016, 2017, 2018, 2019, and 2020, there are 
authorized to be appropriated $5,000,000 to 
carry out the purposes of this subsection. 
(B) 
AVAILABILITY.—Amounts 
appro-
priated pursuant to the authority of subpara-
graph (A) shall remain available without fiscal 
year limitation until expended. 
(c) DEFINITIONS.—As used in subsections (a) and 
(b): 
(1) QUALIFIED
RETURN
PREPARATION
PRO-
GRAM.—The term ‘‘qualified return preparation pro-
gram’’ means any program— 
VerDate Sep 11 2014 
02:59 Dec 01, 2015
Jkt 059200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H4128.IH
H4128
smartinez on DSK4TPTVN1PROD with BILLS
(A) which provides assistance to individ-
uals, not less than 90 percent of whom are low- 
income taxpayers, in preparing and filing Fed-
eral income tax returns, including schedules re-
porting sole proprietorship or farm income, 
(B) which is administered by a qualified 
entity, 
(C) in which all of the volunteers who as-
sist in the preparation of Federal income tax 
returns meet the training requirements pre-
scribed by the Secretary, and 
(D) which uses a quality review process 
which reviews 100 percent of all returns. 
(2) QUALIFIED ENTITY.— 
(A) IN GENERAL.—The term ‘‘qualified en-
tity’’ means any entity which— 
(i) is described in subparagraph (B), 
(ii) is in compliance with Federal tax 
filing and payment requirements, 
(iii) is not debarred or suspended 
from Federal contracts, grants, or coopera-
tive agreements, and 
(iv) agrees to provide documentation 
to substantiate any matching funds pro-
vided under the VITA grant program. 
VerDate Sep 11 2014 
02:59 Dec 01, 2015
Jkt 059200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H4128.IH
H4128
smartinez on DSK4TPTVN1PROD with BILLS
(B) ENTITY DESCRIBED.—An entity is de-
scribed in this subparagraph if such entity is— 
(i) an institution of higher education 
which is described in section 102 (other 
than subsection (a)(1)(C) thereof) of the 
Higher Education Act of 1965 (20 U.S.C. 
1088), as in effect on the date of the en-
actment of this section, and which has not 
been disqualified from participating in a 
program under title IV of such Act, 
(ii) an organization described in sec-
tion 501(c) of the Internal Revenue Code 
of 1986 and exempt from tax under sec-
tion 501(a) of such Code, 
(iii) a State or local government agen-
cy, including— 
(I) a county or municipal govern-
ment agency, 
(II) an Indian tribe, as defined in 
section 4(12) of the Native American 
Housing Assistance and Self-Deter-
mination Act of 1996 (25 U.S.C. 
4103(12)), including any tribally des-
ignated housing entity (as defined in 
section 4(21) of such Act (25 U.S.C. 
VerDate Sep 11 2014 
02:59 Dec 01, 2015
Jkt 059200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H4128.IH
H4128
smartinez on DSK4TPTVN1PROD with BILLS
4103(21))), tribal subsidiary, subdivi-
sion, or other wholly owned tribal en-
tity, and 
(III) a State government agency, 
but only if no other eligible organiza-
tion is available to assist the targeted 
population or community, 
(iv) a local, State, regional, or na-
tional coalition (with one lead organization 
which meets the eligibility requirements of 
clause (i), (ii), or (iii) acting as the appli-
cant organization), or 
(v) a Cooperative Extension Service 
office, but only if no other eligible organi-
zation is available to assist the targeted 
population or community. 
(3) LOW-INCOME TAXPAYERS.—The term ‘‘low- 
income taxpayer’’ means a taxpayer who has an in-
come which does not exceed 250 percent of the pov-
erty line (as defined in section 2110(c)(5) of the So-
cial Security Act (42 U.S.C. 1397jj(c)(5))). 
(4) UNDERSERVED
POPULATION.—The term 
‘‘underserved population’’ includes populations of 
persons with disabilities, persons with limited 
VerDate Sep 11 2014 
02:59 Dec 01, 2015
Jkt 059200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H4128.IH
H4128
smartinez on DSK4TPTVN1PROD with BILLS
English proficiency, Native Americans, individuals 
living in rural areas, and the elderly. 
(5) LEAD NATIONAL ORGANIZATION.—The term 
‘‘lead national organization’’ means an organization 
described in section 501(c) of the Internal Revenue 
Code of 1986 and exempt from tax under section 
501(a) of such Code which has demonstrated, to the 
satisfaction of the Secretary— 
(A) capacity in a minimum of 15 States, 
territories, or tribal areas, 
(B) expertise in the provision of tax prepa-
ration services to low-income taxpayers and un-
derserved populations, 
(C) an ability to train program leadership 
and staff, 
(D) capacity to disseminate information 
throughout the United States, and 
(E) capacity to— 
(i) maintain a Web site through which 
information is disseminated in an easily ac-
cessible manner, and 
(ii) provide technical assistance and 
training through Web-based technologies. 
VerDate Sep 11 2014 
02:59 Dec 01, 2015
Jkt 059200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H4128.IH
H4128
smartinez on DSK4TPTVN1PROD with BILLS
(6) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Treasury or the Secretary’s del-
egate. 
(d) LOW-INCOME TAXPAYER CLINICS.— 
(1) INCREASE IN AUTHORIZED GRANTS.—Para-
graph (1) of section 7526(c) is amended by striking 
‘‘$6,000,000’’ and inserting ‘‘$20,000,000’’. 
(2) USE OF GRANTS FOR OVERHEAD EXPENSES 
PROHIBITED.— 
(A) IN
GENERAL.—Section 7526(c) is 
amended by adding at the end the following 
new paragraph: 
‘‘(6) USE
OF
GRANTS
FOR
OVERHEAD
EX-
PENSES PROHIBITED.—No grant made under this 
section may be used for overhead expenses that are 
not directly related to the clinic.’’. 
(B) CONFORMING AMENDMENTS.—Section 
7526(c)(5) is amended— 
(i) by inserting ‘‘qualified’’ before 
‘‘low-income’’, and 
(ii) by striking the last sentence. 
(3) PROMOTION OF CLINICS.—Section 7526 is 
amended by adding at the end the following new 
subsection: 
VerDate Sep 11 2014 
02:59 Dec 01, 2015
Jkt 059200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6201
E:\BILLS\H4128.IH
H4128
smartinez on DSK4TPTVN1PROD with BILLS
‘‘(d) PROMOTION OF CLINICS.—The Secretary is au-
thorized to promote the benefits of and encourage the use 
of qualified low-income taxpayer clinics through the use 
of mass communications, referrals, and other means.’’. 
(4) IRS REFERRALS TO CLINICS.—Subsection 
(c) of section 7526, as amended by paragraph 
(2)(A), is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(7) IRS REFERRALS.—Notwithstanding any 
other provision of law, the Secretary may refer tax-
payers to specific qualified low-income taxpayer clin-
ics receiving funding under this section.’’. 
(5) POVERTY LINE.—Section 7526(b)(1)(B)(i) 
is amended by striking ‘‘poverty level, as determined 
in accordance with criteria established by the Direc-
tor of the Office of Management and Budget’’ and 
inserting ‘‘poverty line (as defined in section 
2110(c)(5) of the Social Security Act (42 U.S.C. 
1397jj(c)(5)))’’. 
(6) NOTICE OF AVAILABILITY OF CLINICS IN 
NOTICE OF DEFICIENCY.—Subsection (a) of section 
6212 is amended by inserting ‘‘, as well as notice re-
garding the availability of low-income taxpayer clin-
ics and information about how to contact them’’ be-
fore the period at the end. 
VerDate Sep 11 2014 
02:59 Dec 01, 2015
Jkt 059200
PO 00000
Frm 00020
Fmt 6652
Sfmt 6201
E:\BILLS\H4128.IH
H4128
smartinez on DSK4TPTVN1PROD with BILLS
(7) NOTICE OF AVAILABILITY OF CLINICS IN 
NOTICE OF HEARING UPON FILING OF NOTICE OF 
LIEN.—Subsection (a) of section 6320 is amended 
by adding at the end the following new sentence: 
‘‘Such notice shall include a notice to the taxpayer of the 
availability of low-income taxpayer clinics and information 
about how to contact them.’’. 
(8) NOTICE OF AVAILABILITY OF CLINICS IN 
NOTICE
AND
OPPORTUNITY
OF
HEARING
BEFORE 
LEVY.—Paragraph (3) of section 6330(a) is amend-
ed by adding at the end the following flush sentence: 
‘‘Such notice shall include a notice to the taxpayer 
of the availability of low-income taxpayer clinics and 
information about how to contact them.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date of the enactment 
of this Act. 
SEC. 202. REGULATION OF TAX RETURN PREPARERS. 
(a) IN GENERAL.—Subsection (a) of section 330 of 
title 31, United States Code, is amended— 
(1) by striking paragraph (1) and inserting the 
following: 
‘‘(1) regulate— 
VerDate Sep 11 2014 
02:59 Dec 01, 2015
Jkt 059200
PO 00000
Frm 00021
Fmt 6652
Sfmt 6201
E:\BILLS\H4128.IH
H4128
smartinez on DSK4TPTVN1PROD with BILLS
‘‘(A) the practice of representatives of per-
sons before the Department of the Treasury; 
and 
‘‘(B) the practice of tax return preparers; 
and’’, and 
(2) in paragraph (2)— 
(A) by inserting ‘‘or tax return preparer’’ 
after ‘‘representative’’ each place it appears, 
and 
(B) by inserting ‘‘or in preparing their tax 
returns, claims for refund, or documents in con-
nection with tax returns or claims for refund’’ 
after ‘‘cases’’ in subparagraph (D). 
(b) AUTHORITY TO SANCTION REGULATED TAX RE-
TURN PREPARERS.—Subsection (b) of section 330 of title 
31, United States Code, is amended— 
(1) by striking ‘‘before the Department’’, 
(2) by inserting ‘‘or tax return preparer’’ after 
‘‘representative’’ each place it appears, and 
(3) in paragraph (4), by striking ‘‘misleads or 
threatens’’ and all that follows and inserting ‘‘mis-
leads or threatens— 
‘‘(A) any person being represented or any 
prospective person being represented; or 
VerDate Sep 11 2014 
02:59 Dec 01, 2015
Jkt 059200
PO 00000
Frm 00022
Fmt 6652
Sfmt 6201
E:\BILLS\H4128.IH
H4128
smartinez on DSK4TPTVN1PROD with BILLS
‘‘(B) any person or prospective person 
whose tax return, claim for refund, or document 
in connection with a tax return or claim for re-
fund, is being or may be prepared.’’. 
(c) TAX RETURN PREPARER DEFINED.—Section 330 
of title 31, United States Code, is amended by adding at 
the end the following new subsection: 
‘‘(e) TAX RETURN PREPARER.—For purposes of this 
section— 
‘‘(1) IN GENERAL.—The term ‘tax return pre-
parer’ has the meaning given such term under sec-
tion 7701(a)(36) of the Internal Revenue Code of 
1986. 
‘‘(2) TAX RETURN.—The term ‘tax return’ has 
the meaning given to the term ‘return’ under section 
6696(e)(1) of the Internal Revenue Code of 1986. 
‘‘(3) CLAIM FOR REFUND.—The term ‘claim for 
refund’ has the meaning given such term under sec-
tion 6696(e)(2) of such Code.’’. 
SEC. 203. PREPARER PENALTIES WITH RESPECT TO PREPA-
RATION OF RETURNS AND OTHER SUBMIS-
SIONS. 
(a) INCLUSION OF OTHER SUBMISSIONS IN PENALTY 
PROVISIONS.— 
VerDate Sep 11 2014 
02:59 Dec 01, 2015
Jkt 059200
PO 00000
Frm 00023
Fmt 6652
Sfmt 6201
E:\BILLS\H4128.IH
H4128
smartinez on DSK4TPTVN1PROD with BILLS
(1) UNDERSTATEMENT OF TAXPAYER’S LIABIL-
ITY BY TAX RETURN PREPARER.— 
(A) IN GENERAL.—Section 6694 is amend-
ed by striking ‘‘return or claim of refund’’ each 
place it appears and inserting ‘‘return, claim of 
refund, or other submission to the Secretary’’. 
(B) CONFORMING AMENDMENTS.—Section 
6694, as amended by paragraph (1), is amend-
ed by striking ‘‘return or claim’’ each place it 
appears and inserting ‘‘return, claim, or other 
submission to the Secretary’’. 
(2) INCREASE IN PENALTY IN CASE OF GROSS 
MISCONDUCT.—Subsection (b) of section 6694 is 
amended by adding at the end the following new 
paragraph: 
‘‘(4) INCREASE IN PENALTY IN CASE OF GROSS 
MISCONDUCT.—In the case of an understatement to 
which this section applies that is attributable to the 
tax return preparer’s making a false or fraudulent 
return or claim for refund without the taxpayer’s 
knowledge, subsection (a) shall be applied by sub-
stituting ‘100 percent of the amount of the under-
statement’ for ‘50 percent of the amount derived (or 
to be derived) by the tax return preparer with re-
VerDate Sep 11 2014 
02:59 Dec 01, 2015
Jkt 059200
PO 00000
Frm 00024
Fmt 6652
Sfmt 6201
E:\BILLS\H4128.IH
H4128
smartinez on DSK4TPTVN1PROD with BILLS
clause (iv) and inserting ‘‘, and’’, and by adding at the 
end the following new clause: 
‘‘(v) a summary of the penalties as-
sessed and collected during the reporting 
period under sections 6694 and 6695 and 
under the regulations promulgated under 
section 330 of title 31, United States 
Code, and a review of the procedures by 
which violations are identified and pen-
alties are assessed under those sections,’’. 
(d) ADDITIONAL CERTIFICATION
ON DOCUMENTS 
OTHER THAN RETURNS.— 
(1) IDENTIFYING NUMBER REQUIRED FOR ALL 
SUBMISSIONS
TO
THE
IRS
BY
TAX
RETURN
PRE-
PARERS.—The first sentence of paragraph (4) of 
section 6109(a) is amended by striking ‘‘return or 
claim for refund’’ and inserting ‘‘return, claim for 
refund, statement, or other document’’. 
(2) EFFECTIVE DATE.—The amendment made 
by paragraph (1) shall apply to any return, claim for 
refund, or submission to the Secretary that is filed 
after the date of the enactment of this Act. 
(e) COORDINATION WITH SECTION 6060(a).—The 
Secretary of the Treasury shall coordinate the require-
ments under the regulations promulgated under sections 
VerDate Sep 11 2014 
02:59 Dec 01, 2015
Jkt 059200
PO 00000
Frm 00026
Fmt 6652
Sfmt 6201
E:\BILLS\H4128.IH
H4128
smartinez on DSK4TPTVN1PROD with BILLS
330 and 330A of title 31, United States Code, with the 
return requirements of section 6060 of the Internal Rev-
enue Code of 1986. 
(f) EFFECTIVE DATE.—The regulations required by 
this section shall be prescribed not later than one year 
after the date of the enactment of this Act. 
SEC. 204. CLARIFICATION OF ENROLLED AGENT CREDEN-
TIALS. 
Section 330 of title 31, United States Code, is 
amended— 
(1) by redesignating subsections (b), (c), and 
(d) as subsections (c), (d), and (e), respectively, and 
(2) by inserting after subsection (a) the fol-
lowing new subsection: 
‘‘(b) Any enrolled agents properly licensed to practice 
as required under rules promulgated under subsection (a) 
shall be allowed to use the credentials or designation of 
‘enrolled agent’, ‘EA’, or ‘E.A.’.’’. 
SEC. 205. LIMIT REDISCLOSURES AND USES OF CONSENT- 
BASED DISCLOSURES OF TAX RETURN INFOR-
MATION. 
(a) IN GENERAL.—Subsection (c) of section 6103 is 
amended by striking ‘‘However, return’’ and inserting the 
following: ‘‘Persons designated by the taxpayer to receive 
return information shall not use the information for any 
VerDate Sep 11 2014 
02:59 Dec 01, 2015
Jkt 059200
PO 00000
Frm 00027
Fmt 6652
Sfmt 6201
E:\BILLS\H4128.IH
H4128
smartinez on DSK4TPTVN1PROD with BILLS
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 re-
quest by, the taxpayer. Return’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to disclosures after the date of the 
enactment of this Act. 
TITLE III—IMPROVING IRS 
PROCEDURES 
SEC. 301. MODIFICATIONS TO LIEN NOTICE FILING PROCE-
DURES. 
(a) IN GENERAL.—Section 6323 is amended by add-
ing at the end the following new subsection: 
‘‘(k) REQUIRED PROCEDURES BEFORE FILING NO-
TICE OF LIEN.— 
‘‘(1) SECRETARIAL DETERMINATION.— 
‘‘(A) IN
GENERAL.—The Secretary may 
not file a notice of lien with respect to any tax-
payer unless— 
‘‘(i) the lien attaches to distrainable 
property, and 
‘‘(ii) weighing all facts and cir-
cumstances pertaining to the collection of 
a taxpayer’s delinquent tax assessment, the 
Secretary determines that— 
VerDate Sep 11 2014 
02:59 Dec 01, 2015
Jkt 059200
PO 00000
Frm 00028
Fmt 6652
Sfmt 6201
E:\BILLS\H4128.IH
H4128
smartinez on DSK4TPTVN1PROD with BILLS
‘‘(I) the benefit to the Federal 
Government of the filing outweighs 
the harm to the taxpayer, and 
‘‘(II) the filing will not jeopardize 
the taxpayer’s prospective ability— 
‘‘(aa) to comply with the in-
ternal revenue laws, and 
‘‘(bb) if the taxpayer is an 
otherwise viable business tax-
payer, to continue to secure fund-
ing to maintain business oper-
ations. 
‘‘(B) FACTORS TO CONSIDER.—In making 
the determination under subparagraph (A)(ii), 
the Secretary shall consider— 
‘‘(i) the amount due, 
‘‘(ii) the lien filing fee, 
‘‘(iii) the value of the taxpayer’s eq-
uity in the property or rights to property, 
‘‘(iv) the taxpayer’s tax compliance 
history, 
‘‘(v) extenuating circumstances, if 
any, that explain the delinquency, and 
‘‘(vi) the effect of the filing on the 
taxpayer’s ability to obtain financing, gen-
VerDate Sep 11 2014 
02:59 Dec 01, 2015
Jkt 059200
PO 00000
Frm 00029
Fmt 6652
Sfmt 6201
E:\BILLS\H4128.IH
H4128
smartinez on DSK4TPTVN1PROD with BILLS
erate future income, and pay current and 
future tax liabilities. 
‘‘(2) TAXPAYER APPEAL PRIOR TO FILING.— 
‘‘(A) IN
GENERAL.—The Secretary may 
not file a notice of lien with respect to any tax-
payer unless— 
‘‘(i) the Secretary notifies the tax-
payer that the Secretary has determined to 
file such a notice with respect to the tax-
payer, and 
‘‘(ii) the taxpayer is afforded an op-
portunity to appeal such determination to 
the Internal Revenue Service Office of Ap-
peals. 
The Secretary shall provide the notice under 
subparagraph (A) in writing and make reason-
able efforts to provide such notice by telephone 
or direct personal contact. 
‘‘(B) JEOPARDY
NOTICE
OF
LIEN.—The 
Secretary may file a notice of lien without re-
gard to subparagraph (A)(ii) if the Secretary 
finds that the collection of the tax would be in 
jeopardy if the notice of lien is not filed before 
the conclusion of such an appeal. 
VerDate Sep 11 2014 
02:59 Dec 01, 2015
Jkt 059200
PO 00000
Frm 00030
Fmt 6652
Sfmt 6201
E:\BILLS\H4128.IH
H4128
smartinez on DSK4TPTVN1PROD with BILLS
‘‘(3) SUPERVISORY APPROVAL REQUIRED FOR 
LIENS IN CERTAIN CASES.— 
‘‘(A) IN GENERAL.—In any case to which 
this paragraph applies, a notice of lien may not 
be filed unless the immediate supervisor (or 
such higher level official as the Secretary may 
designate) of the individual making the initial 
determination under paragraph (1) has individ-
ually reviewed and approved such determina-
tion. 
‘‘(B) CASES
TO
WHICH
PARAGRAPH
AP-
PLIES.—This paragraph shall apply in any case 
in which— 
‘‘(i) the collection of the liability 
would create an economic hardship within 
the meaning of section 6343(a)(1)(D), 
‘‘(ii) the taxpayer has no equity in as-
sets, or 
‘‘(iii) there has been no personal con-
tact with the taxpayer to discuss collection 
alternatives, including an offer in com-
promise and partial payment installment 
agreement.’’. 
(b) JEOPARDY NOTICE OF LIEN.— 
VerDate Sep 11 2014 
02:59 Dec 01, 2015
Jkt 059200
PO 00000
Frm 00031
Fmt 6652
Sfmt 6201
E:\BILLS\H4128.IH
H4128
smartinez on DSK4TPTVN1PROD with BILLS
(1) IN GENERAL.—Subparagraph (A) of section 
7429(a)(1) is amended by inserting after ‘‘or 6862,’’ 
the following: ‘‘no notice of lien may be filed pursu-
ant to section 6323(k)(2)(B),’’. 
(2) REDETERMINATION BY SECRETARY.—Para-
graph (3) of section 7429(a) is amended by striking 
‘‘or’’ at the end of subparagraph (A), by redesig-
nating subparagraph (B) as subparagraph (C), and 
by inserting after subparagraph (A) the following 
new subparagraph: 
‘‘(B) whether or not the filing of the notice 
of lien pursuant to section 6323(k)(2)(B) is 
reasonable under the circumstances, or’’. 
(3) REDETERMINATION BY TAX COURT.—Para-
graph (3) of section 7429(b) is amended by striking 
‘‘or’’ at the end of subparagraph (A), by redesig-
nating subparagraph (B) as subparagraph (C), and 
by inserting after subparagraph (A) the following 
new subparagraph: 
‘‘(B) whether or not the filing of the notice 
of lien pursuant to section 6323(k)(2)(B) is 
reasonable under the circumstances, or’’. 
(4) CONFORMING AMENDMENTS.— 
VerDate Sep 11 2014 
02:59 Dec 01, 2015
Jkt 059200
PO 00000
Frm 00032
Fmt 6652
Sfmt 6201
E:\BILLS\H4128.IH
H4128
smartinez on DSK4TPTVN1PROD with BILLS
(A) The heading for section 7429 is 
amended by inserting ‘‘, NOTICE
OF
LIEN 
FILING,’’ after ‘‘LEVY’’. 
(B) Subparagraphs (A) and (B) of section 
7429(a)(1) are each amended by striking ‘‘as-
sessment or levy’’ each place it appears and in-
serting ‘‘assessment, notice of lien filing, or 
levy’’. 
(C) 
Subparagraph 
(B) 
of 
section 
7429(b)(2) is amended by striking ‘‘assessment 
or levy’’ and inserting ‘‘assessment, notice of 
lien filing, or levy’’. 
(D) Paragraph (4) of section 7429(b) is 
amended— 
(i) by inserting ‘‘that the filing of 
such notice of lien is unreasonable,’’ after 
‘‘that the making of such levy is unreason-
able,’’, and 
(ii) by inserting ‘‘to withdraw such 
notice of lien,’’ after ‘‘to release such 
levy,’’. 
(E) Paragraph (1) of section 7429(g) is 
amended— 
(i) by inserting ‘‘, the filing of a no-
tice 
of 
lien 
pursuant 
to 
section 
VerDate Sep 11 2014 
02:59 Dec 01, 2015
Jkt 059200
PO 00000
Frm 00033
Fmt 6652
Sfmt 6201
E:\BILLS\H4128.IH
H4128
smartinez on DSK4TPTVN1PROD with BILLS
6323(k)(2)(B),’’ after ‘‘the making of a 
levy described in subsection (a)(1)’’, and 
(ii) by inserting ‘‘NOTICE
OF
LIEN 
FILING’’ after ‘‘REASONABLENESS OF’’ in 
the heading thereof. 
(c) EFFECTIVE DATE.—The amendment made by 
this section shall take effect on the date of the enactment 
of this Act. 
SEC. 302. MODIFICATION OF REQUIREMENTS RELATING TO 
TAX LIEN INFORMATION CONTAINED IN CON-
SUMER CREDIT REPORTS. 
(a) IN GENERAL.—Paragraph (3) of section 605(a) 
of the Fair Credit Reporting Act (15 U.S.C. 1681c(a)(3)) 
is amended to read as follows: 
‘‘(3) TAX LIENS.—The following tax liens: 
‘‘(A) Any tax lien released pursuant to sec-
tion 6325(a) of the Internal Revenue Code of 
1986 not more than 2 years after the date that 
the notice of such lien was filed. 
‘‘(B) Any tax lien released pursuant to sec-
tion 6325(a) of such Code— 
‘‘(i) more than 2 years after the date 
that the notice of such lien was filed, and 
‘‘(ii) more than 2 years before the re-
port. 
VerDate Sep 11 2014 
02:59 Dec 01, 2015
Jkt 059200
PO 00000
Frm 00034
Fmt 6652
Sfmt 6201
E:\BILLS\H4128.IH
H4128
smartinez on DSK4TPTVN1PROD with BILLS
‘‘(C) Any tax lien if— 
‘‘(i) the notice of such lien was not 
refiled during the required refiling period 
(as defined in section 6323(g)(3) of such 
Code), and 
‘‘(ii) such period ends more than 6 
years before the report. 
‘‘(D) Any tax lien the notice of which is 
withdrawn pursuant to section 6323(j)(1) of 
such Code. 
‘‘(E) Any tax lien released pursuant to sec-
tion 6326(b) of such Code if the notice of such 
lien was erroneously filed.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect on the date of the enactment 
of this Act. 
SEC. 303. DE NOVO TAX COURT REVIEW OF INNOCENT 
SPOUSE RELIEF DETERMINATIONS. 
(a) IN GENERAL.—Section 6015 is amended— 
(1) in subsection (e), by adding at the end the 
following new paragraph: 
‘‘(6) STANDARD AND SCOPE OF REVIEW.—Any 
review of a determination made under this section 
shall be reviewed de novo by the Tax Court and shall 
be based upon— 
VerDate Sep 11 2014 
02:59 Dec 01, 2015
Jkt 059200
PO 00000
Frm 00035
Fmt 6652
Sfmt 6201
E:\BILLS\H4128.IH
H4128
smartinez on DSK4TPTVN1PROD with BILLS
‘‘(A) the administrative record established 
at the time of the determination, and 
‘‘(B) any additional newly discovered or 
previously unavailable evidence.’’, and 
(2) by amending subsection (f) to read as fol-
lows: 
‘‘(f) EQUITABLE RELIEF.— 
‘‘(1) IN
GENERAL.—Under procedures pre-
scribed by the Secretary, if— 
‘‘(A) taking into account all the facts and 
circumstances, it is inequitable to hold the indi-
vidual liable for any unpaid tax or any defi-
ciency (or any portion of either), and 
‘‘(B) relief is not available to such indi-
vidual under subsection (b) or (c), 
the Secretary may relieve such individual of such li-
ability. 
‘‘(2) LIMITATION.—A request for equitable re-
lief under this subsection may be made with respect 
to any portion of any liability that— 
‘‘(A) has not been paid, provided that such 
request is made before the expiration of the ap-
plicable period of limitation under section 6502, 
or 
VerDate Sep 11 2014 
02:59 Dec 01, 2015
Jkt 059200
PO 00000
Frm 00036
Fmt 6652
Sfmt 6201
E:\BILLS\H4128.IH
H4128
smartinez on DSK4TPTVN1PROD with BILLS
‘‘(B) has been paid, provided that such re-
quest is made during the period in which the 
individual could submit a timely claim for re-
fund or credit of such payment.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to petitions or requests filed or 
pending on and after the date of the enactment of this 
Act. 
SEC. 304. RELEASE OF FEDERAL TAX LEVIES WHICH CAUSE 
BUSINESS HARDSHIP. 
(a) IN GENERAL.—Subparagraph (D) of section 
6343(a)(1) is amended by inserting ‘‘or any trade or busi-
ness of the taxpayer’’ before ‘‘, or’’. 
(b) CRITERIA FOR DETERMINING BUSINESS HARD-
SHIP.—Subsection (a) of section 6343 is amended by add-
ing at the end the following new paragraph: 
‘‘(4) CRITERIA
FOR
DETERMINING
BUSINESS 
HARDSHIP.—For purposes of making a determina-
tion under paragraph (1)(D), with respect to a trade 
or business of the taxpayer, the Secretary shall take 
into consideration— 
‘‘(A) the economic viability of such trade 
or business, 
‘‘(B) the nature and extent of the hard-
ship, including the extent to which the taxpayer 
VerDate Sep 11 2014 
02:59 Dec 01, 2015
Jkt 059200
PO 00000
Frm 00037
Fmt 6652
Sfmt 6201
E:\BILLS\H4128.IH
H4128
smartinez on DSK4TPTVN1PROD with BILLS
exercised ordinary business care and prudence, 
and 
‘‘(C) any hardships which would be caused 
to other individuals or businesses if such trade 
or business were liquidated.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date of the enactment 
of this Act. 
SEC. 305. REMOVAL OF NONPAYMENT PERIOD FROM LIST 
OF TRIGGERING EVENTS FOR RETURNS RE-
LATING TO CANCELLATION OF INDEBTED-
NESS. 
(a) IN GENERAL.—Subsection (c) of section 6050P 
is amended by adding at the end the following new para-
graph: 
‘‘(4) DETERMINING
DATE
OF
DISCHARGE.— 
Whether an entity has discharged the indebtedness 
of any person shall not be determined based solely 
on the passage of a specified period of time during 
which the entity has not received payment on such 
indebtedness.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to discharges of indebtedness after 
the date of the enactment of this Act. 
VerDate Sep 11 2014 
02:59 Dec 01, 2015
Jkt 059200
PO 00000
Frm 00038
Fmt 6652
Sfmt 6201
E:\BILLS\H4128.IH
H4128
smartinez on DSK4TPTVN1PROD with BILLS
SEC. 306. SPECIAL RULES FOR LEVIES THAT ATTACH TO A 
FIXED AND DETERMINABLE RIGHT. 
(a) IN GENERAL.—Section 6331 is amended by re-
designating subsection (l) as subsection (m) and by insert-
ing after subsection (k) the following new subsection: 
‘‘(l) LIMITATION ON LEVY AFTER EXPIRATION OF 
COLLECTION PERIOD.— 
‘‘(1) PENALTIES AND INTEREST.—In the case 
of a levy that attaches to a fixed and determinable 
right to payments or other property, penalties, addi-
tions to tax, and interest shall not accrue after the 
expiration of the period of limitations provided in 
section 6502. 
‘‘(2) 
RETIREMENT
AND
DISABILITY
PAY-
MENTS.—In the case of a levy on benefits under title 
II of the Social Security Act, benefits under a plan 
on account of a disability, or retirement benefits or 
amounts held in a retirement plan, such levy is not 
enforceable with respect to such benefits or amounts 
after the expiration of the period of limitations pro-
vided in section 6502 unless the taxpayer has com-
mitted a flagrant act (as defined in section 
6334(f)(2)).’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to levies served after the date of 
the enactment of this Act. 
VerDate Sep 11 2014 
02:59 Dec 01, 2015
Jkt 059200
PO 00000
Frm 00039
Fmt 6652
Sfmt 6201
E:\BILLS\H4128.IH
H4128
smartinez on DSK4TPTVN1PROD with BILLS
SEC. 307. RULES RELATED TO LEVIES ON QUALIFIED RE-
TIREMENT PLANS. 
(a) LEVY ALLOWED ON QUALIFIED RETIREMENT 
PLANS IN CERTAIN CIRCUMSTANCES.—Section 6334 is 
amended— 
(1) by redesignating subsections (f) and (g) as 
subsections (g) and (h), respectively, 
(2) by inserting after subsection (e) the fol-
lowing new subsection: 
‘‘(f) LEVY ALLOWED
ON CERTAIN RETIREMENT 
PLANS.— 
‘‘(1) IN GENERAL.—Amounts in a qualified re-
tirement plan (as defined in section 4974(c)) or 
amounts in a taxpayer’s account in the Thrift Sav-
ings Fund (as described in section 8439(a)(2) of 
title 5, United States Code) shall be exempt from 
levy unless— 
‘‘(A) the amount of tax (excluding interest 
and penalties) owed by the taxpayer exceeds 
$10,000, 
‘‘(B) the Secretary determines that the 
taxpayer has committed a flagrant act, and 
‘‘(C) the Secretary determines that such 
levy will not create an economic hardship due to 
the financial condition of the taxpayer (as de-
scribed in section 6343(a)(1)(D)). 
VerDate Sep 11 2014 
02:59 Dec 01, 2015
Jkt 059200
PO 00000
Frm 00040
Fmt 6652
Sfmt 6201
E:\BILLS\H4128.IH
H4128
smartinez on DSK4TPTVN1PROD with BILLS
‘‘(2) FLAGRANT
ACT.—For purposes of this 
subsection, the term ‘flagrant act’ means— 
‘‘(A) the filing of a fraudulent return by 
the taxpayer, or 
‘‘(B) that the taxpayer acted with the in-
tent to evade or defeat any tax imposed by this 
title or the collection or payment thereof.’’, and 
(3) in subsection (h), as redesignated by para-
graph (1)— 
(A) by redesignating paragraph (2) as 
paragraph (3), 
(B) in paragraph (3), as redesignated by 
subparagraph (A), by inserting ‘‘or (2)’’ after 
‘‘paragraph (1)’’, and 
(C) by inserting after paragraph (1) the 
following new paragraph: 
‘‘(2) OTHER AMOUNTS.—In the case of any cal-
endar year beginning after 2015, the dollar amount 
referred to in subsection (f)(1)(A) shall be increased 
by an amount equal to— 
‘‘(A) $10,000, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for such calendar 
year, by substituting ‘calendar year 2014’ for 
VerDate Sep 11 2014 
02:59 Dec 01, 2015
Jkt 059200
PO 00000
Frm 00041
Fmt 6652
Sfmt 6201
E:\BILLS\H4128.IH
H4128
smartinez on DSK4TPTVN1PROD with BILLS
‘calendar year 1992’ in subparagraph (B) 
thereof.’’. 
(b) AUTHORITY TO RELEASE LEVY AND RETURN 
PROPERTY.—Section 6343 is amended by adding at the 
end the following new subsection: 
‘‘(f) INDIVIDUAL HELD HARMLESS FOR WRONGFUL 
LEVY ON CERTAIN RETIREMENT PLANS.— 
‘‘(1) IN GENERAL.—If the Secretary determines 
that a qualified retirement plan (as defined in sec-
tion 4974(c)) or a taxpayer’s account in the Thrift 
Savings Fund (as described in section 8439(a)(2) of 
title 5, United States Code) has been levied upon in 
a manner described in section 7433 or subsection (b) 
or (d) of this section, the applicable amount (as de-
termined under paragraph (2)) may be deposited 
into— 
‘‘(A) if permissible, the plan or account 
levied upon, or 
‘‘(B) an individual retirement plan (other 
than an endowment contract) to which a roll-
over from the plan or account levied upon is 
permitted. 
‘‘(2) APPLICABLE AMOUNT.—For purposes of 
paragraph (1), the applicable amount is an amount 
equal to the sum of— 
VerDate Sep 11 2014 
02:59 Dec 01, 2015
Jkt 059200
PO 00000
Frm 00042
Fmt 6652
Sfmt 6201
E:\BILLS\H4128.IH
H4128
smartinez on DSK4TPTVN1PROD with BILLS
‘‘(A) the amount of money or damages re-
turned by the Secretary on account of a levy de-
scribed in paragraph (1), and 
‘‘(B) any interest paid pursuant to sub-
section (c) on such amount. 
‘‘(3) TREATMENT AS ROLLOVER.—For purposes 
of this title, the distribution on account of the levy 
and any deposit under paragraph (1) with respect to 
such distribution shall be treated as if such distribu-
tion and deposit were a rollover contribution de-
scribed in section 408(d)(3)(A)(i), except that— 
‘‘(A) any interest paid pursuant to sub-
section (c) shall be treated as a part of such 
distribution and not included in gross income, 
‘‘(B) the 60-day requirement under such 
section shall be deemed to have been met if the 
deposit is made not later than the 60th day 
after the day on which the taxpayer receives an 
amount described in paragraph (1) from the 
Secretary, and 
‘‘(C) such deposit shall not be taken into 
account for purposes of section 408(d)(3)(B). 
‘‘(4) TREATMENT OF INCOME TAX ON LEVY.— 
If any amount is includible in gross income for a 
taxable year by reason of a levy described in para-
VerDate Sep 11 2014 
02:59 Dec 01, 2015
Jkt 059200
PO 00000
Frm 00043
Fmt 6652
Sfmt 6201
E:\BILLS\H4128.IH
H4128
smartinez on DSK4TPTVN1PROD with BILLS
graph (1) and any portion of such amount is treated 
as a rollover pursuant to paragraph (3), any tax im-
posed by chapter 1 on such portion shall not be as-
sessed, and if assessed shall be abated, and if col-
lected shall be credited or refunded as an overpay-
ment made on the due date for filing the return of 
tax for such taxable year. 
‘‘(5) INTEREST.—Notwithstanding subsection 
(d), interest shall be allowed under subsection (c) in 
any case in which the Secretary makes a determina-
tion described under section 7433 or paragraph (2) 
of subsection (d) with respect to a levy upon a quali-
fied retirement plan or an account in the Thrift Sav-
ings Fund.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to levies served after the date of 
the enactment of this Act. 
SEC. 308. TAXPAYER RIGHTS TRAINING. 
(a) IN GENERAL.— 
(1) TAXPAYER ADVOCATE.—Subparagraph (C) 
of section 7803(c)(2) is amended by striking ‘‘and’’ 
at the end of clause (iii), by striking the period at 
the end of clause (iv) and inserting ‘‘; and’’, and by 
adding at the end the following new clause: 
VerDate Sep 11 2014 
02:59 Dec 01, 2015
Jkt 059200
PO 00000
Frm 00044
Fmt 6652
Sfmt 6201
E:\BILLS\H4128.IH
H4128
smartinez on DSK4TPTVN1PROD with BILLS
‘‘(v) develop annual training for all 
Internal Revenue Service officers and em-
ployees regarding taxpayer rights, the Of-
fice of the Taxpayer Advocate’s case cri-
teria and mission, and Taxpayer Assist-
ance Order procedures.’’. 
(2) COMMISSIONER.—Paragraph (3) of section 
7803(c) is amended— 
(A) by striking the period at the end and 
inserting ‘‘; and’’, and 
(B) by striking ‘‘shall establish procedures 
requiring’’ and inserting the following: ‘‘shall 
establish procedures— 
‘‘(A) requiring’’, and 
(C) by adding at the end the following new 
subparagraph: 
‘‘(B) for providing annually the training 
described in subsection (c)(2)(C)(v)’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date of the enactment 
of this Act. 
SEC. 309. NOTICE AND OPPORTUNITY FOR HEARING BY 
THE OFFICE OF APPEALS. 
(a) IN GENERAL.—Section 6212 is amended by add-
ing at the end the following new subsection: 
VerDate Sep 11 2014 
02:59 Dec 01, 2015
Jkt 059200
PO 00000
Frm 00045
Fmt 6652
Sfmt 6201
E:\BILLS\H4128.IH
H4128
smartinez on DSK4TPTVN1PROD with BILLS
‘‘(e) REQUIREMENT OF PRELIMINARY NOTICE AND 
OPPORTUNITY FOR HEARING.— 
‘‘(1) RIGHT TO A HEARING.—Subject to para-
graph (3), any taxpayer which receives a notice of 
deficiency under this section shall be entitled to a 
hearing held by the Internal Revenue Service Office 
of Appeals with respect to the proposed deficiency. 
‘‘(2) REQUIREMENT
OF
PRELIMINARY
NO-
TICE.—Subject to paragraph (3), any notice of defi-
ciency sent to a taxpayer under this section shall in-
clude notice of their right to a hearing (as described 
in paragraph (1)). 
‘‘(3) REGULATORY AUTHORITY.—The Secretary 
shall prescribe such regulations as may be necessary 
to carry out the purposes of this section, including 
establishing procedures and exceptions with respect 
to the right to a hearing established under para-
graph (1) and notice of such right under paragraph 
(2).’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall take effect on the date of the enact-
ment of the Act. 
(c) ENSURING NATIONWIDE ACCESS TO APPEALS 
OFFICERS AND SETTLEMENT AGENTS.—The Secretary of 
the Treasury shall ensure that not less than 1 Appeals 
VerDate Sep 11 2014 
02:59 Dec 01, 2015
Jkt 059200
PO 00000
Frm 00046
Fmt 6652
Sfmt 6201
E:\BILLS\H4128.IH
H4128
smartinez on DSK4TPTVN1PROD with BILLS
Officer and 1 Settlement Agent from the Office of Appeals 
of the Internal Revenue Service are assigned to each State 
and made available to the residents of each such State. 
TITLE IV—NATIONAL TAXPAYER 
ADVOCATE 
SEC. 401. MODIFICATIONS RELATING TO TAXPAYER ASSIST-
ANCE ORDERS. 
(a) CLARIFICATION OF AUTHORITY WITH RESPECT 
TO CLOSING AGREEMENTS AND COMPROMISES.—Para-
graph (2) of section 7811(b) is amended— 
(1) by redesignating subparagraphs (C) and 
(D) as subparagraphs (D) and (E), respectively, and 
(2) by inserting after subparagraph (B) the fol-
lowing new subparagraph: 
‘‘(C) chapter 74 (relating to closing agree-
ments and compromises),’’. 
(b) APPEAL OF CERTAIN MODIFIED OR RESCINDED 
ORDERS.—Subsection (c) of section 7811 is amended by 
adding at the end the following new sentence: 
‘‘If the Deputy Commissioner of Internal Revenue modi-
fies or rescinds a Taxpayer Assistance Order, the National 
Taxpayer Advocate may appeal the decision to the Com-
missioner of Internal Revenue for a final determination.’’. 
VerDate Sep 11 2014 
02:59 Dec 01, 2015
Jkt 059200
PO 00000
Frm 00047
Fmt 6652
Sfmt 6201
E:\BILLS\H4128.IH
H4128
smartinez on DSK4TPTVN1PROD with BILLS
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to orders issued after the date of 
the enactment of this Act. 
SEC. 402. TAXPAYER ADVOCATE DIRECTIVES. 
(a) IN GENERAL.—Subchapter A of chapter 80 is 
amended by adding at the end the following new section: 
‘‘SEC. 7812. TAXPAYER ADVOCATE DIRECTIVES. 
‘‘(a) AUTHORITY TO ISSUE.—The National Taxpayer 
Advocate (but not a delegate thereof) may issue a Tax-
payer Advocate Directive to mandate changes to improve 
the operation of a functional process or to grant relief to 
groups of taxpayers (or all taxpayers) if, as a result of 
the manner in which the internal revenue laws are being 
administered by the Secretary, its implementation will 
protect the rights of taxpayers, prevent undue burden, en-
sure equitable treatment, or provide an essential service 
to taxpayers. The terms of a Taxpayer Advocate Directive 
may require the Internal Revenue Service to implement 
it within a specified period of time. 
‘‘(b) AUTHORITY TO MODIFY OR RESCIND.— 
‘‘(1) APPEAL.—An Internal Revenue Service di-
vision or other function may appeal a Taxpayer Ad-
vocate Directive by delivering a written explanation 
that facilitates a full and fair consideration of the 
issues to the National Taxpayer Advocate and Dep-
VerDate Sep 11 2014 
02:59 Dec 01, 2015
Jkt 059200
PO 00000
Frm 00048
Fmt 6652
Sfmt 6201
E:\BILLS\H4128.IH
H4128
smartinez on DSK4TPTVN1PROD with BILLS
uty Commissioner of Internal Revenue, either of 
whom may modify or rescind such Taxpayer Advo-
cate Directive. If the Deputy Commissioner of Inter-
nal Revenue modifies or rescinds a Taxpayer Advo-
cate Directive, the Deputy Commissioner (or a dele-
gate chosen by the Deputy Commissioner) shall pro-
vide a detailed written explanation of the reasons for 
the modification or rescission. 
‘‘(2) FINAL
DETERMINATION.—The National 
Taxpayer Advocate may appeal such decision to the 
Commissioner of Internal Revenue for a final deter-
mination. If the Commissioner does not affirm the 
Taxpayer Advocate Directive in full, then the Com-
missioner shall provide a written explanation of such 
determination, and the reasons therefor, not later 
than 90 days after the submission of such appeal. 
Such explanation shall address in detail each issue 
raised in the Taxpayer Advocate Directive.’’. 
(b) ANNUAL REPORT.— 
(1) IN
GENERAL.—Clause (ii) of section 
7803(c)(2)(B) is amended by redesignating sub-
clauses (III) through (XI) as subclauses (IV) 
through (XII), respectively, and by inserting after 
subclause (II) the following new subclause: 
VerDate Sep 11 2014 
02:59 Dec 01, 2015
Jkt 059200
PO 00000
Frm 00049
Fmt 6652
Sfmt 6201
E:\BILLS\H4128.IH
H4128
smartinez on DSK4TPTVN1PROD with BILLS
‘‘(III) contain Taxpayer Advocate 
Directives 
issued 
under 
section 
7812;’’. 
(2) CONFORMING AMENDMENTS.—Clause (ii) of 
section 7803(c)(2)(B), as amended by paragraph 
(1), is amended— 
(A) by striking ‘‘subclauses (I), (II), and 
(III)’’ in subclauses (V), (VI), and (VII) thereof 
and inserting ‘‘subclauses (I), (II), (III), and 
(IV)’’, and 
(B) in subclause (VIII)— 
(i) by inserting ‘‘or Taxpayer Advo-
cate Directive’’ after ‘‘Taxpayer Assistance 
Order’’, and 
(ii) by inserting ‘‘or 7812(a)’’ after 
‘‘section 7811(b)’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subchapter A of chapter 80 is amended by inserting 
after the item relating to section 7811 the following new 
item: 
‘‘Sec. 7812. Taxpayer advocate directives.’’. 
SEC. 403. OFFICE OF THE TAXPAYER ADVOCATE ACCESS TO 
ADMINISTRATIVE FILES. 
Section 7803(c) is amended by adding at the end the 
following new paragraph: 
VerDate Sep 11 2014 
02:59 Dec 01, 2015
Jkt 059200
PO 00000
Frm 00050
Fmt 6652
Sfmt 6201
E:\BILLS\H4128.IH
H4128
smartinez on DSK4TPTVN1PROD with BILLS
‘‘(5) ACCESS
TO
TAXPAYER
ADMINISTRATIVE 
FILES.— 
‘‘(A) IN GENERAL.—In furtherance of the 
functions, responsibilities, and authorities de-
scribed in this subsection, and in addition to 
the 
authority 
provided 
under 
section 
6103(h)(1), taxpayer administrative files shall, 
upon request, be open to inspection by or dis-
closure to officers and employees of the Office 
of the Taxpayer Advocate whose duties require 
such inspection or disclosure. 
‘‘(B) MEETINGS WITH IRS.—In the case of 
a taxpayer seeking the assistance of the Office 
of the Taxpayer Advocate, any officer or em-
ployee of such Office may, at the request of the 
taxpayer, attend any meeting between the In-
ternal Revenue Service and such taxpayer.’’. 
SEC. 404. OFFICE OF THE TAXPAYER ADVOCATE OPER-
ATIONS DURING A LAPSE IN APPROPRIA-
TIONS. 
Paragraph (2) of section 7803(c) is amended by add-
ing at the end the following new subparagraph: 
‘‘(E) OPERATIONS DURING A LAPSE IN AP-
PROPRIATIONS.—During any lapse in appro-
priations for the Internal Revenue Service, the 
VerDate Sep 11 2014 
02:59 Dec 01, 2015
Jkt 059200
PO 00000
Frm 00051
Fmt 6652
Sfmt 6201
E:\BILLS\H4128.IH
H4128
smartinez on DSK4TPTVN1PROD with BILLS
Commissioner of Internal Revenue, in consulta-
tion with the National Taxpayer Advocate, shall 
designate as essential employees a sufficient 
number of employees of the Office of the Tax-
payer Advocate to provide assistance to tax-
payers relating to enforcement actions carried 
out during the lapse in appropriations.’’. 
Æ 
VerDate Sep 11 2014 
02:59 Dec 01, 2015
Jkt 059200
PO 00000
Frm 00052
Fmt 6652
Sfmt 6301
E:\BILLS\H4128.IH
H4128
smartinez on DSK4TPTVN1PROD with BILLS