Title: 21st Century IRS Act
Policy area: Taxation

Summary:
21st Century IRS Act
This bill amends the Internal Revenue Code to establish requirements for the Internal Revenue Service (IRS) regarding cybersecurity, the protection of taxpayer identities, information technology, and electronic systems.
With respect to cybersecurity and identity protection, the bill:
The IRS must develop and implement:
The bill also:

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5445 Introduced in House (IH)]

<DOC>






115th CONGRESS
  2d Session
                                H. R. 5445

To amend the Internal Revenue Code of 1986 to improve cybersecurity and 
taxpayer identity protection, and modernize the information technology 
        of the Internal Revenue Service, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 10, 2018

  Mr. Bishop of Michigan (for himself and Ms. DelBene) introduced the 
 following bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to improve cybersecurity and 
taxpayer identity protection, and modernize the information technology 
        of the Internal Revenue Service, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; ETC.

    (a) Short Title.--This Act may be cited as the ``21st Century IRS 
Act''.
    (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 considered to be made to a section or other 
provision 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; etc.
             TITLE I--CYBERSECURITY AND IDENTITY PROTECTION

Sec. 101. Public-private partnership to address identity theft refund 
                            fraud.
Sec. 102. Recommendations of Electronic Tax Administration Advisory 
                            Committee regarding identity theft refund 
                            fraud.
Sec. 103. Information sharing and analysis center.
Sec. 104. Compliance by contractors with confidentiality safeguards.
Sec. 105. Report on electronic payments.
            TITLE II--DEVELOPMENT OF INFORMATION TECHNOLOGY

Sec. 201. Management of Internal Revenue Service information 
                            technology.
Sec. 202. Development of online accounts and portals.
Sec. 203. Internet platform for Form 1099 filings.
  TITLE III--MODERNIZATION OF CONSENT-BASED INCOME VERIFICATION SYSTEM

Sec. 301. Disclosure of taxpayer information for third-party income 
                            verification.
Sec. 302. Limit redisclosures and uses of consent-based disclosures of 
                            tax return information.
              TITLE IV--EXPANDED USE OF ELECTRONIC SYSTEMS

Sec. 401. Electronic filing of returns.
Sec. 402. Uniform standards for the use of electronic signatures for 
                            disclosure authorizations to, and other 
                            authorizations of, practitioners.
Sec. 403. Payment of taxes by debit and credit cards.

             TITLE I--CYBERSECURITY AND IDENTITY PROTECTION

SEC. 101. PUBLIC-PRIVATE PARTNERSHIP TO ADDRESS IDENTITY THEFT REFUND 
              FRAUD.

    The Secretary of the Treasury (or the Secretary's delegate) shall 
work collaboratively with the public and private sectors to protect 
taxpayers from identity theft refund fraud.

SEC. 102. RECOMMENDATIONS OF ELECTRONIC TAX ADMINISTRATION ADVISORY 
              COMMITTEE REGARDING IDENTITY THEFT REFUND FRAUD.

    The Secretary of the Treasury shall ensure that the advisory group 
convened by the Secretary pursuant to section 2001(b)(2) of the 
Internal Revenue Service Restructuring and Reform Act of 1998 (commonly 
known as the Electronic Tax Administration Advisory Committee) studies 
(including by providing organized public forums) and makes 
recommendations to the Secretary regarding methods to prevent identity 
theft and refund fraud.

SEC. 103. INFORMATION SHARING AND ANALYSIS CENTER.

    (a) In General.--The Secretary of the Treasury (or the Secretary's 
delegate) may participate in an information sharing and analysis center 
to centralize, standardize, and enhance data compilation and analysis 
to facilitate sharing actionable data and information with respect to 
identity theft tax refund fraud.
    (b) Development of Performance Metrics.--The Secretary of the 
Treasury (or the Secretary's delegate) shall develop metrics for 
measuring the success of such center in detecting and preventing 
identity theft tax refund fraud.
    (c) Disclosure.--
            (1) In general.--Section 6103(k) is amended by adding at 
        the end the following new paragraph:
            ``(13) Disclosure of return information for purposes of 
        cybersecurity and the prevention of identity theft tax refund 
        fraud.--
                    ``(A) In general.--Under such procedures and 
                subject to such conditions as the Secretary may 
                prescribe, the Secretary may disclose specified return 
                information to specified ISAC participants to the 
                extent that the Secretary determines such disclosure is 
                in furtherance of effective Federal tax administration 
                relating to the detection or prevention of identity 
                theft tax refund fraud, validation of taxpayer 
                identity, authentication of taxpayer returns, or 
                detection or prevention of cybersecurity threats.
                    ``(B) Specified isac participants.--For purposes of 
                this paragraph--
                            ``(i) In general.--The term `specified ISAC 
                        participant' means--
                                    ``(I) any person designated by the 
                                Secretary as having primary 
                                responsibility for a function performed 
                                with respect to the information sharing 
                                and analysis center described in 
                                section 403(a) of the 21st Century IRS 
                                Act, and
                                    ``(II) any person subject to the 
                                requirements of section 7216 and which 
                                is a participant in such information 
                                sharing and analysis center.
                            ``(ii) Information sharing agreement.--Such 
                        term shall not include any person unless such 
                        person has entered into a written agreement 
                        with the Secretary setting forth the terms and 
                        conditions for the disclosure of information to 
                        such person under this paragraph, including 
                        requirements regarding the protection and 
                        safeguarding of such information by such 
                        person.
                    ``(C) Specified return information.--For purposes 
                of this paragraph, the term `specified return 
                information' means--
                            ``(i) in the case of a return which is in 
                        connection with a case of potential identity 
                        theft refund fraud--
                                    ``(I) in the case of such return 
                                filed electronically, the internet 
                                protocol address, device 
                                identification, email domain name, 
                                speed of completion, method of 
                                authentication, refund method, and such 
                                other return information related to the 
                                electronic filing characteristics of 
                                such return as the Secretary may 
                                identify for purposes of this 
                                subclause, and
                                    ``(II) in the case of such return 
                                prepared by a tax return preparer, 
                                identifying information with respect to 
                                such tax return preparer, including the 
                                preparer taxpayer identification number 
                                and electronic filer identification 
                                number of such preparer,
                            ``(ii) in the case of a return which is in 
                        connection with a case of a identity theft 
                        refund fraud which has been confirmed by the 
                        Secretary (pursuant to such procedures as the 
                        Secretary may provide), the information 
                        referred to in subclauses (I) and (II) of 
                        clause (i), the name and taxpayer 
                        identification number of the taxpayer as it 
                        appears on the return, and any bank account and 
                        routing information provided for making a 
                        refund in connection with such return, and
                            ``(iii) in the case of any cybersecurity 
                        threat to the Internal Revenue Service, 
                        information similar to the information 
                        described in subclauses (I) and (II) of clause 
                        (i) with respect to such threat.
                    ``(D) Restriction on use of disclosed 
                information.--
                            ``(i) Designated third parties.--Any return 
                        information received by a person described in 
                        subparagraph (B)(i)(I) shall be used only for 
                        the purposes of and to the extent necessary 
                        in--
                                    ``(I) performing the function such 
                                person is designated to perform under 
                                such subparagraph,
                                    ``(II) facilitating disclosures 
                                authorized under subparagraph (A) to 
                                persons described in subparagraph 
                                (B)(i)(II), and
                                    ``(III) facilitating disclosures 
                                authorized under subsection (d) to 
                                participants in such information 
                                sharing and analysis center.
                            ``(ii) Return preparers.--Any return 
                        information received by a person described in 
                        subparagraph (B)(i)(II) shall be treated for 
                        purposes of section 7216 as information 
                        furnished to such person for, or in connection 
                        with, the preparation of a return of the tax 
                        imposed under chapter 1.
                    ``(E) Data protection and safeguards.--Return 
                information disclosed under this paragraph shall be 
                subject to such protections and safeguards as the 
                Secretary may require in regulations or other guidance 
                or in the written agreement referred to in subparagraph 
                (B)(ii). Such written agreement shall include a 
                requirement that any unauthorized access to information 
                disclosed under this paragraph, and any breach of any 
                system in which such information is held, be reported 
                to the Treasury Inspector General for Tax 
                Administration.''.
            (2) Application of civil and criminal penalties.--
                    (A) Section 6103(a)(3) is amended by striking 
                ``subsection (k)(10)'' and inserting ``paragraph (10) 
                or (13) of subsection (k)''.
                    (B) Section 7213(a)(2) is amended by inserting ``or 
                (13)'' after ``(k)(10)''.

SEC. 104. COMPLIANCE BY CONTRACTORS WITH CONFIDENTIALITY SAFEGUARDS.

    (a) In General.--Section 6103(p) is amended by adding at the end 
the following new paragraph:
            ``(9) Disclosure to contractors and other agents.--
        Notwithstanding any other provision of this section, no return 
        or return information shall be disclosed to any contractor or 
        other agent of a Federal, State, or local agency unless such 
        agency, to the satisfaction of the Secretary--
                    ``(A) has requirements in effect which require each 
                such contractor or other agent which would have access 
                to returns or return information to provide safeguards 
                (within the meaning of paragraph (4)) to protect the 
                confidentiality of such returns or return information,
                    ``(B) agrees to conduct an on-site review every 3 
                years (or a mid-point review in the case of contracts 
                or agreements of less than 3 years in duration) of each 
                contractor or other agent to determine compliance with 
                such requirements,
                    ``(C) submits the findings of the most recent 
                review conducted under subparagraph (B) to the 
                Secretary as part of the report required by paragraph 
                (4)(E), and
                    ``(D) certifies to the Secretary for the most 
                recent annual period that such contractor or other 
                agent is in compliance with all such requirements.
        The certification required by subparagraph (D) shall include 
        the name and address of each contractor and other agent, a 
        description of the contract or agreement with such contractor 
        or other agent, and the duration of such contract or agreement. 
        The requirements of this paragraph shall not apply to 
        disclosures pursuant to subsection (n) for purposes of Federal 
        tax administration.''.
    (b) Conforming Amendment.--Section 6103(p)(8)(B) is amended by 
inserting ``or paragraph (9)'' after ``subparagraph (A)''.
    (c) Effective Date.--The amendments made by this subsection shall 
apply to disclosures made after December 31, 2022.

SEC. 105. REPORT ON ELECTRONIC PAYMENTS.

    Not later than 2 years after the date of the enactment of this Act, 
the Secretary (or the Secretary's delegate), in coordination with the 
Bureau of Fiscal Service and the Internal Revenue Service, and in 
consultation with private sector financial institutions, shall submit a 
written report to Congress describing how the government can utilize 
new payment platforms to increase the number of tax refunds paid by 
electronic funds transfer. Such report shall weigh the interests of 
reducing identity theft tax refund fraud, reducing the Federal 
Government's costs in delivering tax refunds, the costs and any 
associated fees charged to taxpayers (including monthly and point-of-
service fees) to access their tax refunds, the impact on individuals 
who do not have access to financial accounts or institutions, and 
ensuring payments are made to accounts at a financial institution that 
complies with section 21 of the Federal Deposit Insurance Act, chapter 
2 of title I of Public Law 91-508, and subchapter II of chapter 53 of 
title 31, United States Code (commonly referred to collectively as the 
``Bank Secrecy Act'') and the USA PATRIOT Act. Such report shall 
include any legislative recommendations necessary to accomplish these 
goals.

            TITLE II--DEVELOPMENT OF INFORMATION TECHNOLOGY

SEC. 201. MANAGEMENT OF INTERNAL REVENUE SERVICE INFORMATION 
              TECHNOLOGY.

    (a) Duties and Responsibilities of Internal Revenue Service Chief 
Information Officer.--Section 7803 is amended by adding at the end the 
following new subsection:
    ``(f) Internal Revenue Service Chief Information Officer.--
            ``(1) In general.--There shall be in the Internal Revenue 
        Service an Internal Revenue Service Chief Information Officer 
        (hereafter referred to in this subsection as the `IRS CIO') who 
        shall be appointed by the Administrator of the Internal Revenue 
        Service.
            ``(2) Centralized responsibility for internal revenue 
        service information technology.--The Administrator of the 
        Internal Revenue Service (and the Secretary) shall act through 
        the IRS CIO with respect to all development, implementation, 
        and maintenance of information technology for the Internal 
        Revenue Service. Any reference in this subsection to the IRS 
        CIO which directs the IRS CIO to take any action, or to assume 
        any responsibility, shall be treated as a reference to the 
        Administrator of the Internal Revenue Service acting through 
        the IRS CIO.
            ``(3) General duties and responsibilities.--The IRS CIO 
        shall--
                    ``(A) be responsible for the development, 
                implementation, and maintenance of information 
                technology for the Internal Revenue Service,
                    ``(B) ensure that the information technology of the 
                Internal Revenue Service is secure and integrated,
                    ``(C) maintain operational control of all 
                information technology for the Internal Revenue 
                Service,
                    ``(D) be the principal advocate for the information 
                technology needs of the Internal Revenue Service, and
                    ``(E) consult with the Chief Procurement Officer of 
                the Internal Revenue Service to ensure that the 
                information technology acquired for the Internal 
                Revenue Service is consistent with--
                            ``(i) the goals and requirements specified 
                        in subparagraphs (A) through (D), and
                            ``(ii) the strategic plan developed under 
                        paragraph (4).
            ``(4) Strategic plan.--
                    ``(A) In general.--The IRS CIO shall develop and 
                implement a multiyear strategic plan for the 
                information technology needs of the Internal Revenue 
                Service. Such plan shall--
                            ``(i) include performance measurements of 
                        such technology and of the implementation of 
                        such plan,
                            ``(ii) include a plan for an integrated 
                        enterprise architecture of the information 
                        technology of the Internal Revenue Service,
                            ``(iii) include and take into account the 
                        resources needed to accomplish such plan,
                            ``(iv) take into account planned major 
                        acquisitions of information technology by the 
                        Internal Revenue Service, including Customer 
                        Account Data Engine 2 and the Enterprise Case 
                        Management System, and
                            ``(v) align with the needs and strategic 
                        plan of the Internal Revenue Service.
                    ``(B) Plan updates.--The IRS CIO shall, not less 
                frequently than annually, review and update the 
                strategic plan under subparagraph (A) (including the 
                plan for an integrated enterprise architecture 
                described in subparagraph (A)(ii)) to take into account 
                the development of new information technology and the 
                needs of the Internal Revenue Service.
            ``(5) Scope of authority.--
                    ``(A) Information technology.--For purposes of this 
                subsection, the term `information technology' has the 
                meaning given such term by section 11101 of title 40, 
                United States Code.
                    ``(B) Internal revenue service.--Any reference in 
                this subsection to the Internal Revenue Service 
                includes a reference to all components of the Internal 
                Revenue Service, including--
                            ``(i) the Office of the Taxpayer Advocate,
                            ``(ii) the Criminal Investigation Division 
                        of the Internal Revenue Service, and
                            ``(iii) except as otherwise provided by the 
                        Secretary with respect to information 
                        technology related to matters described in 
                        subsection (b)(3)(B), the Office of the Chief 
                        Counsel.''.
    (b) Independent Verification and Validation of the Customer Account 
Data Engine 2 and Enterprise Case Management System.--
            (1) In general.--The Administrator of the Internal Revenue 
        Service shall enter into a contract with an independent 
        reviewer to verify and validate the implementation plans 
        (including the performance milestones and cost estimates 
        included in such plans) developed for the Customer Account Data 
        Engine 2 and the Enterprise Case Management System.
            (2) Deadline for completion.--Such contract shall require 
        that such verification and validation be completed not later 
        than the date which is 1 year after the date of the enactment 
        of this Act.
            (3) Application to phases of cade 2.--
                    (A) In general.--Paragraphs (1) and (2) shall not 
                apply to phase 1 of the Customer Account Data Engine 2 
                and shall apply separately to each other phase.
                    (B) Deadline for completing plans.--Not later than 
                1 year after the date of the enactment of this Act, the 
                Administrator of the Internal Revenue Service shall 
                complete the development of plans for all phases of the 
                Customer Account Data Engine 2.
                    (C) Deadline for completion of verification and 
                validation of plans.--In the case of any phase after 
                phase 2 of the Customer Account Data Engine 2, 
                paragraph (2) shall be applied by substituting ``the 
                date on which the plan for such phase was completed'' 
                for ``the date of the enactment of this Act''.
    (c) Coordination of IRS CIO and Chief Procurement Officer of the 
Internal Revenue Service.--
            (1) In general.--The Chief Procurement Officer of the 
        Internal Revenue Service shall--
                    (A) identify all significant IRS information 
                technology acquisitions and provide written 
                notification to the Internal Revenue Service Chief 
                Information Officer (hereafter referred to in this 
                subsection as the ``IRS CIO'') of each such acquisition 
                in advance of such acquisition, and
                    (B) regularly consult with the IRS CIO regarding 
                acquisitions of information technology for the Internal 
                Revenue Service, including meeting with the IRS CIO 
                regarding such acquisitions upon request.
            (2) Significant irs information technology acquisitions.--
        For purposes of this subsection, the term ``significant IRS 
        information technology acquisitions'' means--
                    (A) any acquisition of information technology for 
                the Internal Revenue Service in excess of $1,000,000, 
                and
                    (B) such other acquisitions of information 
                technology for the Internal Revenue Service (or 
                categories of such acquisitions) as the IRS CIO, in 
                consultation with the Chief Procurement Officer of the 
                Internal Revenue Service, may identify.
            (3) Scope.--Terms used in this subsection which are also 
        used in section 7803(f) of the Internal Revenue Code of 1986 
        (as amended by subsection (a)) shall have the same meaning as 
        when used in such section.

SEC. 202. DEVELOPMENT OF ONLINE ACCOUNTS AND PORTALS.

    (a) In General.--The Secretary of the Treasury or the Secretary's 
delegate (hereafter referred to in this section as the ``Secretary'') 
shall--
            (1) develop secure individualized online accounts to 
        provide services to taxpayers and their designated return 
        preparers, including obtaining taxpayer information, making 
        payment of taxes, sharing documentation, and (to the extent 
        feasible) addressing and correcting issues, and
            (2) develop a process for the acceptance of tax forms, and 
        supporting documentation, in digital or other electronic 
        format.
    (b) Electronic Services Treated as Supplemental; Application of 
Security Standards.--The Secretary shall ensure that the processes 
described in subsection (a)--
            (1) are a supplement to, and not a replacement for, other 
        services provided by the Internal Revenue Service to taxpayers, 
        including face-to-face taxpayer assistance and services 
        provided by phone, and
            (2) comply with applicable security standards and 
        guidelines.
    (c) Process for Developing Online Accounts.--
            (1) Development of plan.--Not later than 1 year after the 
        date of the enactment of this Act, the Secretary shall submit 
        to Congress a written report describing the Secretary's plan 
        for developing the secure individualized online accounts 
        described in subsection (a)(1). Such plan shall address the 
        feasibility of taxpayers addressing and correcting issues 
        through such accounts and whether access to such accounts 
        should be restricted and in what manner.
            (2) Deadline.--The Secretary shall make every reasonable 
        effort to make the secure individualized online accounts 
        described in subsection (a)(1) available to taxpayers by 
        December 31, 2023.

SEC. 203. INTERNET PLATFORM FOR FORM 1099 FILINGS.

    (a) In General.--Not later than January 1, 2023, the Secretary of 
the Treasury or the Secretary's delegate (hereafter referred to in this 
section as the ``Secretary'') shall make available an Internet website 
or other electronic media, with a user interface and functionality 
similar to the Business Services Online Suite of Services provided by 
the Social Security Administration, that will provide access to 
resources and guidance provided by the Internal Revenue Service and 
will allow persons to--
            (1) prepare and file Forms 1099,
            (2) prepare Forms 1099 for distribution to recipients other 
        than the Internal Revenue Service, and
            (3) maintain a record of completed and submitted Forms 
        1099.
    (b) Electronic Services Treated as Supplemental; Application of 
Security Standards.--The Secretary shall ensure that the services 
described in subsection (a)--
            (1) are a supplement to, and not a replacement for, other 
        services provided by the Internal Revenue Service to taxpayers, 
        and
            (2) comply with applicable security standards and 
        guidelines.

  TITLE III--MODERNIZATION OF CONSENT-BASED INCOME VERIFICATION SYSTEM

SEC. 301. DISCLOSURE OF TAXPAYER INFORMATION FOR THIRD-PARTY INCOME 
              VERIFICATION.

    (a) In General.--Not later than 1 year after the close of the 2-
year period described in subsection (d)(1), the Secretary of the 
Treasury or the Secretary's delegate (hereafter referred to in this 
section as the ``Secretary'') shall implement a program to ensure that 
any qualified disclosure--
            (1) is fully automated and accomplished through the 
        Internet, and
            (2) is accomplished in as close to real-time as is 
        practicable.
    (b) Qualified Disclosure.--For purposes of this section, the term 
``qualified disclosure'' means a disclosure under section 6103(c) of 
the Internal Revenue Code of 1986 of returns or return information by 
the Secretary to a person seeking to verify the income or 
creditworthiness of a taxpayer who is a borrower in the process of a 
loan application.
    (c) Application of Security Standards.--The Secretary shall ensure 
that the program described in subsection (a) complies with applicable 
security standards and guidelines.
    (d) User Fee.--
            (1) In general.--During the 2-year period beginning on the 
        first day of the 6th calendar month beginning after the date of 
        the enactment of this Act, the Secretary shall assess and 
        collect a fee for qualified disclosures (in addition to any 
        other fee assessed and collected for such disclosures) at such 
        rates as the Secretary determines are sufficient to cover the 
        costs related to implementing the program described in 
        subsection (a), including the costs of any necessary 
        infrastructure or technology.
            (2) Deposit of collections.--Amounts received from fees 
        assessed and collected under paragraph (1) shall be deposited 
        in, and credited to, an account solely for the purpose of 
        carrying out the activities described in subsection (a). Such 
        amounts shall be available to carry out such activities without 
        need of further appropriation and without fiscal year 
        limitation.

SEC. 302. LIMIT REDISCLOSURES AND USES OF CONSENT-BASED DISCLOSURES OF 
              TAX RETURN INFORMATION.

    (a) In General.--Section 6103(c) is amended by adding at the end 
the following: ``Persons designated by the taxpayer under this 
subsection to receive return information shall not use the information 
for any 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 request by, the taxpayer.''.
    (b) Application of Penalties.--Section 6103(a)(3) is amended by 
inserting ``subsection (c),'' after ``return information under''.
    (c) Effective Date.--The amendments made by this section shall 
apply to disclosures made after the date of the enactment of this Act.

              TITLE IV--EXPANDED USE OF ELECTRONIC SYSTEMS

SEC. 401. ELECTRONIC FILING OF RETURNS.

    (a) In General.--Section 6011(e)(2)(A) is amended by striking 
``250'' and inserting ``the applicable number of''.
    (b) Applicable Number.--Section 6011(e) is amended by adding at the 
end the following new paragraph:
            ``(5) Applicable number.--For purposes of paragraph (2)(A), 
        the applicable number shall be determined in accordance with 
        the following table:
                    ``(A) in the case of calendar years before 2020, 
                250,
                    ``(B) in the case of calendar year 2020, 100, and
                    ``(C) in the case of calendar years after 2020, 
                10.''.
    (c) Returns Filed by a Tax Return Preparer.--Section 6011(e)(3) is 
amended by adding at the end the following new subparagraph:
                    ``(D) Exception for certain prepares located in 
                areas without internet access.--The Secretary may waive 
                the requirement of subparagraph (A) if the Secretary 
                determines, on the basis of an application by the tax 
                return preparer, that the preparer cannot meet such 
                requirement by reason of being located in a geographic 
                area which does not have access to internet service 
                (other than dial-up or satellite service).''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 402. UNIFORM STANDARDS FOR THE USE OF ELECTRONIC SIGNATURES FOR 
              DISCLOSURE AUTHORIZATIONS TO, AND OTHER AUTHORIZATIONS 
              OF, PRACTITIONERS.

    Section 6061(b)(3) is amended to read as follows:
            ``(3) Published guidance.--
                    ``(A) In general.--The Secretary shall publish 
                guidance as appropriate to define and implement any 
                waiver of the signature requirements or any method 
                adopted under paragraph (1).
                    ``(B) Electronic signatures for disclosure 
                authorizations to, and other authorizations of, 
                practitioners.--Not later than 6 months after the date 
                of the enactment of this subparagraph, the Secretary 
                shall publish guidance to establish uniform standards 
                and procedures for the acceptance of taxpayers' 
                signatures appearing in electronic form with respect to 
                any request for disclosure of a taxpayer's return or 
                return information under section 6103(c) to a 
                practitioner or any power of attorney granted by a 
                taxpayer to a practitioner.
                    ``(C) Practitioner.--For purposes of subparagraph 
                (B), the term `practitioner' means any individual in 
                good standing who is regulated under section 330 of 
                title 31, United States Code.''.

SEC. 403. PAYMENT OF TAXES BY DEBIT AND CREDIT CARDS.

    (a) In General.--Section 6311(d)(2) is amended by adding at the end 
the following: ``The preceding sentence shall not apply to the extent 
that the Secretary ensures that any such fee or other consideration is 
fully recouped by the Secretary in the form of fees paid to the 
Secretary by persons paying taxes imposed under subtitle A with credit, 
debit, or charge cards pursuant to such contract. Notwithstanding the 
preceding sentence, the Secretary shall seek to minimize the amount of 
any fee or other consideration that the Secretary pays under any such 
contract.''.
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