IB 
Union Calendar No. 19 
116TH CONGRESS 
1ST SESSION H. R. 1957 
[Report No. 116–39, Part I] 
To amend the Internal Revenue Code of 1986 to modernize and improve 
the Internal Revenue Service, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 28, 2019 
Mr. LEWIS (for himself, Mr. KELLY of Pennsylvania, Mr. NEAL, Mr. BRADY, 
Ms. DELBENE, Mrs. WALORSKI, Ms. SA´NCHEZ, Mr. LAHOOD, Mr. 
SUOZZI, Mr. WENSTRUP, Ms. JUDY CHU of California, Ms. MOORE, and 
Mr. BRENDAN F. BOYLE of Pennsylvania) introduced the following bill; 
which was referred to the Committee on Ways and Means, and in addi-
tion to the Committee on Financial Services, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such 
provisions as fall within the jurisdiction of the committee concerned 
APRIL 9, 2019 
Additional sponsors: Mr. SCHNEIDER, Mr. FITZPATRICK, Mr. WATKINS, Ms. 
NORTON, Mr. BUCHANAN, Ms. SEWELL of Alabama, Mr. DANNY K. 
DAVIS of Illinois, Mrs. MURPHY, Mr. HIGGINS of New York, Mr. HOLD-
ING, Mr. GOMEZ, Mr. HORSFORD, Mr. LARSON of Connecticut, Mr. 
EVANS, Mr. TAYLOR, and Mr. CISNEROS 
APRIL 9, 2019 
Reported from the Committee on Ways and Means with an amendment 
[Strike out all after the enacting clause and insert the part printed in italic] 
APRIL 9, 2019 
Committee on Financial Services discharged; committed to the Committee of 
the Whole House on the State of the Union and ordered to be printed 
[For text of introduced bill, see copy of bill as introduced on March 28, 2019] 
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A BILL 
To amend the Internal Revenue Code of 1986 to modernize 
and improve the Internal Revenue Service, and for other 
purposes. 
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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 First Act of 2019’’. 
(b) AMENDMENT OF 1986 CODE.—Except as otherwise 
expressly provided, whenever in this Act an amendment or 
repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be consid-
ered to be made to a section or other provision of the Inter-
nal Revenue Code of 1986. 
(c) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; etc. 
TITLE I—PUTTING TAXPAYERS FIRST 
Subtitle A—Independent Appeals Process 
Sec. 1001. Establishment of Internal Revenue Service Independent Office of Ap-
peals. 
Subtitle B—Improved Service 
Sec. 1101. Comprehensive customer service strategy. 
Sec. 1102. IRS Free File Program. 
Sec. 1103. Low-income exception for payments otherwise required in connection 
with a submission of an offer-in-compromise. 
Subtitle C—Sensible Enforcement 
Sec. 1201. Internal Revenue Service seizure requirements with respect to struc-
turing transactions. 
Sec. 1202. Exclusion of interest received in action to recover property seized by 
the Internal Revenue Service based on structuring transaction. 
Sec. 1203. Clarification of equitable relief from joint liability. 
Sec. 1204. Modification of procedures for issuance of third-party summons. 
Sec. 1205. Private debt collection and special compliance personnel program. 
Sec. 1206. Reform of notice of contact of third parties. 
Sec. 1207. Modification of authority to issue designated summons. 
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Sec. 1208. Limitation on access of non-Internal Revenue Service employees to re-
turns and return information. 
Subtitle D—Organizational Modernization 
Sec. 1301. Office of the National Taxpayer Advocate. 
Sec. 1302. Modernization of Internal Revenue Service organizational structure. 
Subtitle E—Other Provisions 
Sec. 1401. Return preparation programs for applicable taxpayers. 
Sec. 1402. Provision of information regarding low-income taxpayer clinics. 
Sec. 1403. Notice from IRS regarding closure of taxpayer assistance centers. 
Sec. 1404. Rules for seizure and sale of perishable goods restricted to only perish-
able goods. 
Sec. 1405. Whistleblower reforms. 
Sec. 1406. Customer service information. 
Sec. 1407. Misdirected tax refund deposits. 
TITLE II—21ST CENTURY IRS 
Subtitle A—Cybersecurity and Identity Protection 
Sec. 2001. Public-private partnership to address identity theft refund fraud. 
Sec. 2002. Recommendations of Electronic Tax Administration Advisory Com-
mittee regarding identity theft refund fraud. 
Sec. 2003. Information sharing and analysis center. 
Sec. 2004. Compliance by contractors with confidentiality safeguards. 
Sec. 2005. Report on electronic payments. 
Sec. 2006. Identity protection personal identification numbers. 
Sec. 2007. Single point of contact for tax-related identity theft victims. 
Sec. 2008. Notification of suspected identity theft. 
Sec. 2009. Guidelines for stolen identity refund fraud cases. 
Sec. 2010. Increased penalty for improper disclosure or use of information by 
preparers of returns. 
Subtitle B—Development of Information Technology 
Sec. 2101. Management of Internal Revenue Service information technology. 
Sec. 2102. Internet platform for Form 1099 filings. 
Sec. 2103. 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. 
Sec. 2202. Limit redisclosures and uses of consent-based disclosures of tax return 
information. 
Subtitle D—Expanded Use of Electronic Systems 
Sec. 2301. Electronic filing of returns. 
Sec. 2302. Uniform standards for the use of electronic signatures for disclosure 
authorizations to, and other authorizations of, practitioners. 
Sec. 2303. Payment of taxes by debit and credit cards. 
Sec. 2304. Authentication of users of electronic services accounts. 
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Subtitle E—Other Provisions 
Sec. 2401. Repeal of provision regarding certain tax compliance procedures and 
reports. 
Sec. 2402. Comprehensive training 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. 
Sec. 3002. Notification of unauthorized inspection or disclosure of returns and re-
turn information. 
Subtitle B—Provisions Relating to Exempt Organizations 
Sec. 3101. Mandatory e-filing by exempt organizations. 
Sec. 3102. Notice required before revocation of tax-exempt status for failure to file 
return. 
Subtitle C—Revenue Provision 
Sec. 3201. Increase in penalty for failure to file. 
TITLE I—PUTTING TAXPAYERS 
FIRST 
Subtitle A—Independent Appeals 
Process 
SEC. 1001. ESTABLISHMENT OF INTERNAL REVENUE SERV-
ICE INDEPENDENT OFFICE OF APPEALS. 
(a) IN GENERAL.—Section 7803 is amended by adding 
at the end the following new subsection: 
‘‘(e) INDEPENDENT OFFICE OF APPEALS.— 
‘‘(1) ESTABLISHMENT.—There is established in 
the Internal Revenue Service an office to be known as 
the ‘Internal Revenue Service Independent Office of 
Appeals’. 
‘‘(2) CHIEF OF APPEALS.— 
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