United States Tax Court Modernization Act

Bill: 109-s-661
Sponsor: Sen. Hatch, Orrin G. [R-UT]
Introduced: 2005-03-17 in the Senate
Policy area: Taxation
Subjects: Administrative remedies
Annuities
Appellate procedure
Assassination
Civil service retirement
Cost of living adjustments
Crime and Law Enforcement
Debtor and creditor
Due process of law
Economics and Public Finance
Education
Federal employees
Finance and Financial Sector
Government Operations and Politics
Government employees' life insurance
Government ethics
Higher education
Insurance premiums
Judges
Judicial compensation
Judicial ethics
Judicial officers
Judicial tenure
Labor and Employment
Law
Leave of absence
Legal education
Legal fees
Magistrates
Personnel management
Social Welfare
Social security taxes
Survivors' benefits
Tax administration
Tax courts
Tax-deferred compensation plans
Taxpayers
Teacher salaries
User charges

Summary:
action_date: 2005-03-17
text: 
United States Tax Court Modernization Act - Amends the Internal Revenue Code to revise and add provisions relating to the U.S. Tax Court, including: (1) granting exclusive jurisdiction to the Tax Court over collection due process case appeals; (2) permitting the assignment of cases involving small employment tax disputes ($50,000 or less) to special trial judges; (3) confirming that the Tax Court may apply the doctrine of equitable recoupment to the same extent that it is available in civil tax cases before the U.S. District Courts and the U.S. Court of Federal Claims; (4) applying the filing fee for Tax Court petitions to all petitions filed in such Court; (5) permitting the Tax Court to establish its own personnel management system, including merit system and nondiscrimination requirements; and (6) requiring a portion of Tax Court practitioner fees to be used for services to pro se taxpayers. 
Revises and adds personnel provisions for Tax Court judges and employees, including: (1) allowance of indexed payments for survivors of assassinated judges with less than five years of service; (2) inclusion of active and retired Tax Court judges in the Federal employees group life insurance program (FEGLI); (3) authorizing the Tax Court to pay increases in the costs of FEGLI coverage for judges age 65 or over; (4) allowing Tax Court judges to participate in the Thrift Savings Plan (TSP); and (5) expanding the role of, and benefits for, active and retired magistrate judges.
action_date: 2005-04-28
text: 
United States Tax Court Modernization Act - Amends the Internal Revenue Code to revise or add substantive and administrative provisions relating to the U.S. Tax Court.
 
 
Title I: Tax Court Procedure
 - (Sec. 101) Grants exclusive jurisdiction to the U.S. Tax Court over collection due process case appeals.
 
(Sec. 102) Authorizes the assignment of employment tax cases involving $50,000 or less to special trial judges. 
 
(Sec. 103) Permits the Tax Court to apply the doctrine of equitable recoupment (defendant's right to claim an offset against a debt in a creditor action) to the same extent that it is available in civil tax cases before the U.S. District Court and the U.S. Court of Federal Claims. 
 
(Sec. 104) Authorizes the Tax Court to charge a filing fee of up to $60 in any case commenced in such Court by the filing of a petition. 
 
(Sec. 105) Authorizes the Tax Court to establish its own personnel management system incorporating certain employee protections, including merit system principles, nondiscrimination, a right of appeal in personnel matters, and protections against prohibited personnel practices. 
 
Allows the Tax Court to: (1) appoint its own Clerk of Court, law clerks, secretaries, and other employees; (2) set the pay and other conditions of employment for such employees; and (3) hire experts and consultants.
 
(Sec. 106) Requires a portion of Tax Court practitioner fees to be used for services to 
pro se
 taxpayers (taxpayers representing themselves before the Tax Court).
 

Title II: Tax Court Pension and Compensation
 - (Sec. 201) Revises rules governing payment of annuities to surviving spouses and dependents of Tax Court judges to provide for the payment of an annuity for a judge with less than five years of service who is assassinated.
 
(Sec. 202) Provides for cost-of-living increases to annuities for surviving spouses and dependents of Tax Court judges based on increases paid under the Civil Service Retirement System. 
 
(Sec. 203) Includes active and retired Tax Court judges in the Federal employees group life insurance program (FEGLI). 
 
(Sec. 204) Authorizes the Tax Court to pay increases in the cost of Federal employee group life insurance for judges age 65 and over. 
 
(Sec. 205) Authorizes the Tax Court to make a lump-sum payment to newly-appointed Tax Court judges for their accumulated and accrued current annual leave from prior Federal service. 
 
(Sec. 206) Allows Tax Court judges to participate in the Thrift Savings Plan (TSP). 
 
(Sec. 207) Exempts compensation earned by a retired Tax Court judge for teaching from treatment as outside earned income subject to limitations under the Ethics in Government Act of 1978.
 
(Sec. 208) Changes the title of special trial judge to magistrate judge. Authorizes the Chief Judge of the Tax Court to appoint and reappoint magistrate judges for eight-year terms. Allows the removal of a magistrate judge for specified reasons, including incompetency, misconduct, neglect of duty, or physical or mental disability.
 
(Sec .209) Provides for the payment of annuities to surviving spouses and dependents of magistrate judges. 
 
(Sec. 210) Establishes a retirement and annuity program for magistrate judges. Entitles magistrate judges who have attained the age of 65 with at least 14 years of service to retirement and annuity benefits. Sets forth provisions relating to benefits for magistrate judges upon failure of reappointment, retirement for disability, cost-of-living adjustments, and eligibility for lump-sum payments. 
 
Establishes in the Treasury the Tax Court Judicial Officers' Retirement Fund for the financing of retirement and annuity benefits for magistrate judges. 
 
Allows magistrate judges to participate in the Thrift Savings Plan.
 
(Sec. 211) Permits incumbent magistrate judges to elect participation in an annuity under the Civil Service Retirement System or the Federal Employees' Retirement System in lieu of the retirement and annuity program established by this Act.
 
(Sec. 212) Authorizes the Chief Judge of the Tax Court to recall retired magistrate judges for service. Limits the term of such service to 90 days in any calendar year.


Legislative actions:
action_date: 2005-04-28
text: Placed on Senate Legislative Calendar under General Orders. Calendar No. 96.
action_date: 2005-04-28
text: Committee on Finance. Reported by Senator Grassley with an amendment in the nature of a substitute. With written report No. 109-64.
action_date: 2005-04-28
text: Committee on Finance. Reported by Senator Grassley with an amendment in the nature of a substitute. With written report No. 109-64.
action_date: 2005-04-19
text: Committee on Finance. Ordered to be reported with an amendment in the nature of a substitute favorably.
action_date: 2005-03-17
text: Read twice and referred to the Committee on Finance.
action_date: 2005-03-17
text: Sponsor introductory remarks on measure. (CR S3011-3012)
action_date: 2005-03-17
text: Introduced in Senate