HR 1677 RFS
loss from a qualified joint venture shall be taken 
into account as provided in section 761(f) of the In-
ternal Revenue Code of 1986 in determining net 
earnings from self-employment of such spouse.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2006. 
SEC. 3. TAXPAYER NOTIFICATION OF SUSPECTED IDENTITY 
THEFT. 
(a) IN GENERAL.—Chapter 77 (relating to miscella-
neous provisions) is amended by adding at the end the 
following new section: 
‘‘SEC. 
7529. 
NOTIFICATION 
OF 
SUSPECTED 
IDENTITY 
THEFT. 
‘‘If, in the course of an investigation under section 
7206 (relating to fraud and false statements) or 7207 (re-
lating to fraudulent returns, statements, or other docu-
ments), the Secretary determines that there was or may 
have been an unauthorized use of the identity of the tax-
payer or dependents, the Secretary shall— 
‘‘(1) as soon as practicable and without jeop-
ardizing such investigation, notify the taxpayer of 
such determination, and 
‘‘(2) if any person is criminally charged by in-
dictment or information under either of such sec-
VerDate Aug 31 2005 
06:22 Apr 19, 2007
Jkt 059200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H1677.RFS
H1677
mstockstill on PROD1PC66 with BILLS
HR 1677 RFS
tions, notify such taxpayer as soon as practicable of 
such charge.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for chapter 77 is amended by adding at the end the fol-
lowing new item: 
‘‘Sec. 7529. Notification of suspected identity theft.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to determinations made after the 
date of the enactment of this Act. 
SEC. 4. EXTENSION OF TIME FOR RETURN OF PROPERTY 
FOR WRONGFUL LEVY. 
(a) EXTENSION OF TIME FOR RETURN OF PROPERTY 
SUBJECT TO LEVY.—Subsection (b) of section 6343 (re-
lating to return of property) is amended by striking ‘‘9 
months’’ and inserting ‘‘2 years’’. 
(b) PERIOD OF LIMITATION ON SUITS.—Subsection 
(c) of section 6532 (relating to suits by persons other than 
taxpayers) is amended— 
(1) in paragraph (1) by striking ‘‘9 months’’ 
and inserting ‘‘2 years’’, and 
(2) in paragraph (2) by striking ‘‘9-month’’ and 
inserting ‘‘2-year’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to— 
(1) levies made after the date of the enactment 
of this Act, and 
VerDate Aug 31 2005 
06:22 Apr 19, 2007
Jkt 059200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H1677.RFS
H1677
mstockstill on PROD1PC66 with BILLS
HR 1677 RFS
(2) levies made on or before such date if the 9- 
month period has not expired under section 6343(b) 
of the Internal Revenue Code of 1986 (without re-
gard to this section) as of such date. 
SEC. 5. INDIVIDUALS HELD HARMLESS ON WRONGFUL 
LEVY, ETC., ON INDIVIDUAL RETIREMENT 
PLAN. 
(a) IN GENERAL.—Section 6343 (relating to author-
ity to release levy and return property) is amended by add-
ing at the end the following new subsection: 
‘‘(f) INDIVIDUALS HELD HARMLESS ON WRONGFUL 
LEVY, ETC. ON INDIVIDUAL RETIREMENT PLAN.— 
‘‘(1) IN GENERAL.—If the Secretary determines 
that an individual retirement plan has been levied 
upon in a case to which subsection (b) or (d)(2)(A) 
applies, an amount equal to the sum of— 
‘‘(A) the amount of money returned by the 
Secretary on account of such levy, and 
‘‘(B) interest paid under subsection (c) on 
such amount of money, 
may be deposited into such individual retirement 
plan or any other individual retirement plan (other 
than an endowment contract) to which a rollover 
from the plan levied upon is permitted. 
VerDate Aug 31 2005 
06:22 Apr 19, 2007
Jkt 059200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H1677.RFS
H1677
mstockstill on PROD1PC66 with BILLS