Taxpayer Assistance and Simplification Act of 2008

Bill: 110-hr-5719
Sponsor: Rep. Rangel, Charles B. [D-NY-15]
Introduced: 2008-04-08 in the House
Policy area: Taxation
Subjects: Collection of accounts
Commerce
Congress
Congressional reporting requirements
Corporation taxes
Crime and Law Enforcement
Debit cards
Department of the Treasury
Earned income tax credit
Economics and Public Finance
Electronic funds transfers
Finance and Financial Sector
Fraud
Government Operations and Politics
Government contractors
Government procurement
Government publicity
Government service contracts
Governmental investigations
Grants-in-aid
Home care services
Identity theft
Income tax
Internet
Labor and Employment
Law
Loans
Names
Partnerships
Science, Technology, Communications
Searches and seizures
Signs and symbols
Social Welfare
Tax auditing
Tax deductions
Tax exemption
Tax liens
Tax penalties
Tax preparers
Tax refunds
Tax returns
Taxpayers
Volunteer workers
Wireless communication
Withholding tax

Summary:
action_date: 2008-04-08
text: 
Taxpayer Assistance and Simplification Act of 2008 - Amends the Internal Revenue Code to: (1) modify penalty provisions for tax return preparers who take an unreasonable position in the preparation of a tax return causing an underpayment of tax; (2) eliminate certain restrictions on the tax deduction for employee use of cellular telephones; (3) exempt recipients of home care services from liability for employment taxes for payments made to home care service providers; (4) authorize the Secretary of the Treasury to make grants for volunteer income tax assistance programs; (5) require written notice to taxpayers of eligibility for the earned income tax credit; (6) place restrictions on information relating to refund anticipation loans; (7) require the Secretary to notify a taxpayer of any unauthorized use of such taxpayer's identity (suspected identity theft) uncovered during an tax investigation; (8) repeal the authority of the Internal Revenue Service (IRS) to enter into private debt collection contracts; (9) extend the period during which the IRS may return property seized in a wrongful tax levy; and (10) increase penalties for failures to provide correct tax information and to file partnership or S corporation tax returns.

Delays until 2012 the 3% withholding requirement on government payments to contractors providing goods and services.

Directs the Secretary of the Treasury to conduct a feasibility study on alternative means of delivering tax refunds.

Expands the prohibitions against the misuse of Department of the Treasury names and symbols to include misuse on an Internet domain address.

action_date: 2008-04-14
text: 
Taxpayer Assistance and Simplification Act of 2008 - (Sec. 2) Amends the Internal Revenue Code to modify the standards for imposing penalties on tax return preparers for understatements of tax to require: (1) substantial authority for a position with respect to an item on a tax return if such position was not disclosed with the return; and (2) a reasonable basis for a position that was disclosed with the return. 

Requires tax return preparers to have a reasonable belief that a position with respect to a tax shelter or a reportable transaction (a transaction having a potential for tax avoidance or evasion) will more likely than not be sustained on its merits.

(Sec. 3) Removes certain limitations on the tax deduction for employee use of cellular telephones.

(Sec. 4) Delays until 2012 the 3% withholding requirement on government payments to contractors providing goods and services.

(Sec. 5) Exempts recipients of home care services under federally-assisted state or local government home care programs for the elderly or disabled from payment of employment taxes for amounts paid to service providers. Imposes liability for payment of such taxes on the fiscal administrators of such programs. 

(Sec. 6) Allows officers and employees of the Department of the Treasury to refer taxpayers for advice and assistance to federally-funded low-income taxpayer clinics. 

(Sec. 7) Authorizes the Secretary of the Treasury to make grants to provide matching funds for volunteer income tax assistance programs. Increases to $10 million the annual amount the Secretary may allocate for grants to such programs.

(Sec. 8) Requires the Secretary to provide taxpayers with annual written notices of eligibility for the earned income tax credit. 

(Sec. 9) Prohibits the Secretary from providing a debt indicator (notice of a tax refund offset) to businesses that provide refund anticipation loans and engage in predatory business practices with respect to such loans. 

(Sec. 10) Directs the Secretary to conduct a feasibility study for delivering tax refunds on debit cards, prepaid cards, and other electronic means to facilitate refunds to individuals who do not have bank accounts. 

(Sec. 11) Extends from nine months to two years the period in which the Internal Revenue Service (IRS) may return property that has been wrongfully levied and for bringing a civil action for a wrongful levy.

(Sec. 12) Allows taxpayers to recontribute to their individual retirement accounts (IRAs), without penalty or limitation, amounts that were wrongfully levied by the IRS. Requires the IRS to pay interest on IRA amounts that were wrongfully seized.

(Sec. 13) Requires the Secretary to notify a taxpayer of: (1) any unauthorized use of such taxpayer's identity (suspected identity theft) which the Secretary uncovers during a tax investigation; and (2) any criminal charges brought against an individual who is using the identity of such taxpayer.

(Sec. 14) Repeals the authority of the IRS to enter into private debt collection contracts. Exempts contracts entered into before March 1, 2008, that are not renewed or extended after such date. Nullifies any contract entered into, extended, or renewed on or after such date.

(Sec. 15) Allows the IRS to use any means of mass communication (e.g., the Internet) to publish unclaimed tax refund amounts.

(Sec. 16) Expands the prohibitions against the misuse of Department of the Treasury names and symbols to the use of such names and symbols on an Internet domain address. 

(Sec. 17) Sets forth a substantiation requirement for payments from a health savings account. Requires the trustee of a health savings account to report to the Secretary and the account beneficiary any unsubstantiated amount paid from an account for the preceding calendar year.

(Sec. 18) Amends the Internal Revenue Code and title II (Old Age, Survivors, and Disability Insurance Benefits) of the Social Security Act to treat certain foreign subsidiaries of U.S. companies performing services under a contract with the U.S. government as U.S. employers for purposes of Social Security and Medicare employment taxes.

(Sec. 19) Amends the Tax Increase Prevention and Reconciliation Act of 2005 to increase estimated tax payments for certain large corporations in the third quarter of 2013. 

action_date: 2008-04-15
text: 
Taxpayer Assistance and Simplification Act of 2008 - (Sec. 2) Amends the Internal Revenue Code to modify the standards for imposing penalties on tax return preparers for understatements of tax to require: (1) substantial authority for a position with respect to an item on a tax return if such position was not disclosed with the return; and (2) a reasonable basis for a position that was disclosed with the return. 

Requires tax return preparers to have a reasonable belief that a position with respect to a tax shelter or a reportable transaction (a transaction having a potential for tax avoidance or evasion) will more likely than not be sustained on its merits.

(Sec. 3) Removes certain limitations on the tax deduction for employee use of cellular telephones.

(Sec. 4) Delays until 2012 the 3% withholding requirement on government payments to contractors providing goods and services.

(Sec. 5) Exempts recipients of home care services under federally-assisted state or local government home care programs for the elderly or disabled from payment of employment taxes for amounts paid to service providers. Imposes liability for payment of such taxes on the fiscal administrators of such programs. 

(Sec. 6) Allows officers and employees of the Department of the Treasury to refer taxpayers for advice and assistance to federally-funded low-income taxpayer clinics. 

(Sec. 7) Authorizes the Secretary of the Treasury to make grants to provide matching funds for volunteer income tax assistance programs. Increases to $10 million the annual amount the Secretary may allocate for grants to such programs.

(Sec. 8) Requires the Secretary to provide taxpayers with annual written notices of eligibility for the earned income tax credit. 

(Sec. 9) Prohibits the Secretary from providing a debt indicator (notice of a tax refund offset) to businesses that provide refund anticipation loans and engage in predatory business practices with respect to such loans. 

(Sec. 10) Directs the Secretary to conduct a feasibility study for delivering tax refunds on debit cards, prepaid cards, and other electronic means to facilitate refunds to individuals who do not have bank accounts. 

(Sec. 11) Extends from nine months to two years the period in which the Internal Revenue Service (IRS) may return property that has been wrongfully levied and for bringing a civil action for a wrongful levy.

(Sec. 12) Allows taxpayers to recontribute to their individual retirement accounts (IRAs), without penalty or limitation, amounts that were wrongfully levied by the IRS. Requires the IRS to pay interest on IRA amounts that were wrongfully seized.

(Sec. 13) Requires the Secretary to notify a taxpayer of: (1) any unauthorized use of such taxpayer's identity (suspected identity theft) which the Secretary uncovers during a tax investigation; and (2) any criminal charges brought against an individual who is using the identity of such taxpayer.

(Sec. 14) Repeals the authority of the IRS to enter into private debt collection contracts. Exempts contracts entered into before March 1, 2008, that are not renewed or extended after such date. Nullifies any contract entered into, extended, or renewed on or after such date.

(Sec. 15) Allows the IRS to use any means of mass communication (e.g., the Internet) to publish unclaimed tax refund amounts.

(Sec. 16) Expands the prohibitions against the misuse of Department of the Treasury names and symbols to the use of such names and symbols on an Internet domain address. 

(Sec. 17) Sets forth a substantiation requirement for payments from a health savings account. Requires the trustee of a health savings account to report to the Secretary and the account beneficiary any unsubstantiated amount paid from an account for the preceding calendar year.

(Sec. 18) Amends the Internal Revenue Code and title II (Old Age, Survivors, and Disability Insurance Benefits) of the Social Security Act to treat certain foreign subsidiaries of U.S. companies performing services under a contract with the U.S. government as U.S. employers for purposes of Social Security and Medicare employment taxes.

(Sec. 19) Amends the Tax Increase Prevention and Reconciliation Act of 2005 to increase estimated tax payments for certain large corporations in the third quarter of 2013. 

(Sec. 20) Directs the Comptroller General to study and report to Congress on the use of distributions from health savings accounts.


Legislative actions:
action_date: 2008-04-16
text: Received in the Senate and Read twice and referred to the Committee on Finance.
action_date: 2008-04-15
text: Motion to reconsider laid on the table Agreed to without objection.
action_date: 2008-04-15
text: On passage Passed by recorded vote: 238 - 179 (Roll no. 190). (text: CR H2307-2310)
action_date: 2008-04-15
text: Passed/agreed to in House: On passage Passed by recorded vote: 238 - 179 (Roll no. 190).(text: CR H2307-2310)
action_date: 2008-04-15
text: On motion to recommit with instructions Failed by the Yeas and Nays: 210 - 210 (Roll no. 189).
action_date: 2008-04-15
text: The previous question on the motion to recommit with instructions was ordered without objection. (consideration: CR H2320)
action_date: 2008-04-15
text: DEBATE - The House proceeded with ten minutes of debate on the Herger motion to recommit with instructions. The instructions contained in the motion seek to add language to deny tax exempt interest with respect to bonds of sanctuary states and cities.
action_date: 2008-04-15
text: Mr. Herger moved to recommit with instructions to Ways and Means. (consideration: CR H2319-2321; text: CR H2319)
action_date: 2008-04-15
text: The previous question was ordered pursuant to the rule. (consideration: CR H2319)
action_date: 2008-04-15
text: DEBATE - The House proceeded with one hour of debate on H.R. 5719.
action_date: 2008-04-15
text: Rule provides for consideration of H.R. 5719 with 1 hour of general debate. Previous question shall be considered as ordered without intervening motions except motion to recommit with or without instructions. Measure will be considered read. Bill is closed to amendments. All points of order against consideration of the bill are waived except those arising under clause 9 or 10 of rule XXI. The amendment in the nature of a substitute recommended by the Committee on Ways and Means now printed in the bill shall be considered as adopted.
action_date: 2008-04-15
text: Considered under the provisions of rule H. Res. 1102. (consideration: CR H2307-2322)
action_date: 2008-04-15
text: Rule H. Res. 1102 passed House.
action_date: 2008-04-14
text: Supplemental report filed by the Committee on Ways and Means, H. Rept. 110-584, Part II.
action_date: 2008-04-14
text: Supplemental report filed by the Committee on Ways and Means, H. Rept. 110-584, Part II.
action_date: 2008-04-14
text: Rules Committee Resolution H. Res. 1102 Reported to House. Rule provides for consideration of H.R. 5719 with 1 hour of general debate. Previous question shall be considered as ordered without intervening motions except motion to recommit with or without instructions. Measure will be considered read. Bill is closed to amendments. All points of order against consideration of the bill are waived except those arising under clause 9 or 10 of rule XXI. The amendment in the nature of a substitute recommended by the Committee on Ways and Means now printed in the bill shall be considered as adopted.
action_date: 2008-04-14
text: Placed on the Union Calendar, Calendar No. 362.
action_date: 2008-04-14
text: Reported (Amended) by the Committee on Ways and Means. H. Rept. 110-584, Part I.
action_date: 2008-04-14
text: Reported (Amended) by the Committee on Ways and Means. H. Rept. 110-584, Part I.
action_date: 2008-04-09
text: Ordered to be Reported (Amended) by the Yeas and Nays: 23 - 17.
action_date: 2008-04-09
text: Committee Consideration and Mark-up Session Held.
action_date: 2008-04-08
text: Referred to the House Committee on Ways and Means.
action_date: 2008-04-08
text: Introduced in House
action_date: 2008-04-08
text: Introduced in House