IIB 
110TH CONGRESS 
1ST SESSION H. R. 3056 
IN THE SENATE OF THE UNITED STATES 
OCTOBER 15, 2007 
Received; read twice and referred to the Committee on Finance 
AN ACT 
To amend the Internal Revenue Code of 1986 to repeal 
the authority of the Internal Revenue Service to use 
private debt collection companies, to delay implementa-
tion of withholding taxes on government contractors, to 
revise the tax rules on expatriation, and for other pur-
poses. 
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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; AMENDMENT OF 1986 CODE; 
TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Tax Collection Responsibility Act of 2007’’. 
(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 
shall be considered to be made to a section or other provi-
sion of the Internal Revenue Code of 1986. 
(c) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows: 
Sec. 1. Short title; amendment of 1986 Code; table of contents. 
Sec. 2. Repeal of authority to enter into private debt collection contracts. 
Sec. 3. Delay of application of withholding requirement on certain governmental 
payments for goods and services. 
Sec. 4. Clarification of entitlement of Virgin Islands residents to protections of 
limitations on assessment and collection of tax. 
Sec. 5. Revision of tax rules on expatriation. 
Sec. 6. Repeal of suspension of certain penalties and interest. 
Sec. 7. Increase in information return penalties. 
Sec. 8. Time for payment of corporate estimated taxes. 
SEC. 2. REPEAL OF AUTHORITY TO ENTER INTO PRIVATE 
DEBT COLLECTION CONTRACTS. 
(a) IN GENERAL.—Subchapter A of chapter 64 is 
amended by striking section 6306. 
(b) CONFORMING AMENDMENTS.— 
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(1) Subchapter B of chapter 76 is amended by 
striking section 7433A. 
(2) Section 7811 is amended by striking sub-
section (g). 
(3) Section 1203 of the Internal Revenue Serv-
ice Restructuring Act of 1998 is amended by strik-
ing subsection (e). 
(4) The table of sections for subchapter A of 
chapter 64 is amended by striking the item relating 
to section 6306. 
(5) The table of sections for subchapter B of 
chapter 76 is amended by striking the item relating 
to section 7433A. 
(c) EFFECTIVE DATE.— 
(1) IN
GENERAL.—Except as otherwise pro-
vided in this subsection, the amendments made by 
this section shall take effect on the date of the en-
actment of this Act. 
(2) EXCEPTION
FOR
EXISTING
CONTRACTS, 
ETC.—The amendments made by this section shall 
not apply to any contract which was entered into be-
fore July 18, 2007, and is not renewed or extended 
on or after such date. 
(3) UNAUTHORIZED CONTRACTS AND EXTEN-
SIONS TREATED AS VOID.—Any qualified tax collec-
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tion contract (as defined in section 6306 of the In-
ternal Revenue Code of 1986, as in effect before its 
repeal) which is entered into on or after July 18, 
2007, and any extension or renewal on or after such 
date of any qualified tax collection contract (as so 
defined) shall be void. 
SEC. 3. DELAY OF APPLICATION OF WITHHOLDING RE-
QUIREMENT ON CERTAIN GOVERNMENTAL 
PAYMENTS FOR GOODS AND SERVICES. 
(a) IN GENERAL.—Subsection (b) of section 511 of 
the Tax Increase Prevention and Reconciliation Act of 
2005 is amended by striking ‘‘December 31, 2010’’ and 
inserting ‘‘December 31, 2011’’. 
(b) REPORT
TO
CONGRESS.—Not later than 6 
months after the date of the enactment of this Act, the 
Secretary of the Treasury shall submit to the Committee 
on Ways and Means of the House of Representatives and 
the Committee on Finance of the Senate a report with 
respect to the withholding requirements of section 3402(t) 
of the Internal Revenue Code of 1986, including a detailed 
analysis of— 
(1) the problems, if any, which are anticipated 
in administering and complying with such require-
ments, 
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(2) the burdens, if any, that such requirements 
will place on governments and businesses (taking 
into account such mechanisms as may be necessary 
to administer such requirements), and 
(3) the application of such requirements to 
small expenditures for services and goods by govern-
ments. 
SEC. 4. CLARIFICATION OF ENTITLEMENT OF VIRGIN IS-
LANDS RESIDENTS TO PROTECTIONS OF LIM-
ITATIONS ON ASSESSMENT AND COLLECTION 
OF TAX. 
(a) IN GENERAL.—Subsection (c) of section 932 (re-
lating to treatment of Virgin Islands residents) is amended 
by adding at the end the following new paragraph: 
‘‘(5) TREATMENT
OF
INCOME
TAX
RETURN 
FILED WITH VIRGIN ISLANDS.—An income tax re-
turn filed with the Virgin Islands by an individual 
claiming to be described in paragraph (1) for the 
taxable year shall be treated for purposes of subtitle 
F in the same manner as if such return were an in-
come tax return filed with the United States for 
such taxable year. The preceding sentence shall not 
apply where such return is false or fraudulent with 
the intent to avoid tax or otherwise is a willful at-
tempt in any manner to defeat or evade tax.’’. 
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