IB 
Union Calendar No. 182 
110TH CONGRESS 
1ST SESSION H. R. 3056 
[Report No. 110–281] 
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 implementation of withholding taxes on government contractors, 
to revise the tax rules on expatriation, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 17, 2007 
Mr. RANGEL (for himself, Mr. LEVIN, Mr. MCDERMOTT, Mr. LEWIS of Geor-
gia, Mr. BLUMENAUER, Mr. VAN HOLLEN, Mr. MEEK of Florida, Mr. 
LARSON of Connecticut, Mr. POMEROY, and Mr. CROWLEY) introduced 
the following bill; which was referred to the Committee on Ways and 
Means 
JULY 31, 2007 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on July 17, 2007] 
A BILL 
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 
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revise the tax rules on expatriation, and for other pur-
poses. 
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 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 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 Service 
Restructuring Act of 1998 is amended by striking 
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 provided 
in this subsection, the amendments made by this sec-
tion shall take effect on the date of the enactment 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 before 
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 Inter-
nal Revenue Code of 1986, as in effect before its re-
peal) 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 with-
holding requirements of section 3402(t) of the Internal Rev-
enue Code of 1986, including a detailed analysis of— 
(1) the problems, if any, which are anticipated 
in administering and complying with such require-
ments, 
(2) the burdens, if any, that such requirements 
will place on governments and businesses (taking into 
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account such mechanisms as may be necessary to ad-
minister such requirements), and 
(3) the application of such requirements to small 
expenditures for services and goods by governments. 
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 (relat-
ing 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 return 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 income tax return 
filed with the United States for such taxable year. 
The preceding sentence shall not apply where such re-
turn is false or fraudulent with the intent to avoid 
tax or otherwise is a willful attempt in any manner 
to defeat or evade tax.’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to taxable years beginning after 1986. 
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