Tax Collection Responsibility Act of 2007

Bill: 110-hr-3056
Sponsor: Rep. Rangel, Charles B. [D-NY-15]
Introduced: 2007-07-17 in the House
Policy area: Taxation
Subjects: Capital gains tax
Caribbean area
Collection of accounts
Commerce
Congressional reporting requirements
Corporation taxes
Expatriation
Finance and Financial Sector
Gift tax
Government Operations and Politics
Government procurement
Income tax
Inheritance tax
Interest
Surety and fidelity
Tax administration
Tax deferral
Tax evasion
Tax penalties
Tax rates
Tax returns
Valuation
Virgin Islands
Withholding tax

Summary:
action_date: 2007-07-17
text: 
Tax Collection Responsibility Act of 2007 - Amends the Internal Revenue Code to: (1) repeal the authority for the Internal Revenue Service (IRS) to enter into private debt collection contracts; (2) delay until 2012 the requirement for federal, state, and local agencies to withhold 3% of payments for goods and services provided to such agencies; (3) treat tax returns filed by residents of the Virgin Islands as filed in the United States for certain tax administration purposes; (4) revise certain tax rules applicable to persons revoking their U.S. citizenship or permanent residency (expatriates) to avoid payment of U.S. taxes; (5) repeal the suspension of penalties and interest for underpayments of tax for taxpayers who had not been notified of an underpayment; (6) increase penalties for failing to file correct information returns, failing to furnish correct payee statements, and failing to comply with other information reporting requirements; and (7) increase the rate of estimated tax applicable to certain large corporations for the third quarter of 2012.

action_date: 2007-07-31
text: 
Tax Collection Responsibility Act of 2007 - (Sec. 2) Repeals the authority of the Internal Revenue Service (IRS) to enter into private debt collection contracts. Exempts contracts entered into before July 18, 2007, if such contracts are not renewed or extended after such date. Nullifies any contract entered into, extended, or renewed on or after July 18, 2007.

(Sec. 3) Delays until 2012 the requirement for federal, state, and local agencies to withhold 3% of payments for goods and services provided to such agencies.

Requires the Secretary of the Treasury to report to the House Committee on Ways and Means and the Senate Committee on Finance on issues relating to the administration of the withholding requirement.

(Sec. 4) Treats income tax returns filed with the U.S. Virgin Islands by an individual claiming to be a bona fide resident of the Virgin Islands during the entire taxable year as filed with the United States for tax administration purposes. 

(Sec. 5) Sets forth additional rules for the tax treatment of high-income individuals who relinquish U.S. citizenship or residency to avoid U.S. taxation (expatriates). Treats all property of expatriates as sold for its fair market value on the day before the expatriation date and includes gain (over $600,000) or loss from such sale in the gross income of such expatriates. Allows expatriates to elect to defer payment of any tax resulting from expatriation if adequate security for payment of such tax is given.

Requires 30% withholding of tax for certain items of deferred compensation payable to expatriates.

Imposes a separate tax on gifts and bequests from expatriates exceeding $10,000, payable by the recipient of such gift or bequest.

(Sec. 6) Repeals provisions providing for a 36-month suspension of interest and penalties on tax underpayments for taxpayers who had not been notified of a tax deficiency by the IRS. 

(Sec. 7) Increases penalties for failing to file correct information returns, failing to furnish correct payee statements, and failing to comply with other information reporting requirements.

(Sec. 8) Increases the percentage rate for estimated tax payments for certain large corporations in the third quarter of 2012.

action_date: 2007-10-10
text: 
Tax Collection Responsibility Act of 2007 - (Sec. 2) Repeals the authority of the Internal Revenue Service (IRS) to enter into private debt collection contracts. Exempts contracts entered into before July 18, 2007, if such contracts are not renewed or extended after such date. Nullifies any contract entered into, extended, or renewed on or after July 18, 2007.

(Sec. 3) Delays until 2012 the requirement for federal, state, and local agencies to withhold 3% of payments for goods and services provided to such agencies.

Requires the Secretary of the Treasury to report to the House Committee on Ways and Means and the Senate Committee on Finance on issues relating to the administration of the withholding requirement.

(Sec. 4) Treats income tax returns filed with the U.S. Virgin Islands by an individual claiming to be a bona fide resident of the Virgin Islands during the entire taxable year as filed with the United States for tax administration purposes. 

(Sec. 5) Sets forth additional rules for the tax treatment of high-income individuals who relinquish U.S. citizenship or residency to avoid U.S. taxation (expatriates). Treats all property of expatriates as sold for its fair market value on the day before the expatriation date and includes gain (over $600,000) or loss from such sale in the gross income of such expatriates. Allows expatriates to elect to defer payment of any tax resulting from expatriation if adequate security for payment of such tax is given.

Requires 30% withholding of tax for certain items of deferred compensation payable to expatriates.

Imposes a separate tax on gifts and bequests from expatriates exceeding $10,000, payable by the recipient of such gift or bequest.

(Sec. 6) Repeals provisions providing for a 36-month suspension of interest and penalties on tax underpayments for taxpayers who had not been notified of a tax deficiency by the IRS. 

(Sec. 7) Increases penalties for failing to file correct information returns, failing to furnish correct payee statements, and failing to comply with other information reporting requirements.

(Sec. 8) Increases to 115.25% the rate for estimated tax payments for certain large corporations in the third quarter of 2012.


Legislative actions:
action_date: 2007-10-15
text: Received in the Senate and Read twice and referred to the Committee on Finance.
action_date: 2007-10-10
text: On passage Passed by recorded vote: 232 - 173 (Roll no. 960). (text: CR H11449-11452)
action_date: 2007-10-10
text: Motion to reconsider laid on the table Agreed to without objection.
action_date: 2007-10-10
text: Passed/agreed to in House: On passage Passed by recorded vote: 232 - 173 (Roll no. 960).(text: CR H11449-11452)
action_date: 2007-10-10
text: On motion to recommit with instructions Failed by the Yeas and Nays: 196 - 212 (Roll no. 959).
action_date: 2007-10-10
text: The previous question on the motion to recommit with instructions was ordered without objection. (consideration: CR H11463)
action_date: 2007-10-10
text: DEBATE - The House proceeded with 10 minutes of debate on the Hulshof motion to recommit with instructions. The instructions contained in the motion seek to require the bill to be reported back to the House with an amendment adding a new section making the estate tax repeal permanent.
action_date: 2007-10-10
text: Mr. Hulshof moved to recommit with instructions to Ways and Means. (consideration: CR H11462-11464)
action_date: 2007-10-10
text: The previous question was ordered pursuant to the rule. (consideration: CR H11462)
action_date: 2007-10-10
text: DEBATE - The House proceeded with one hour of debate on H.R. 3056.
action_date: 2007-10-10
text: Rule provides for consideration of H.R. 3056 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 or rule XXI. The amendment in the nature of a substitute recommended by the Committee on Ways and Means now printed in the bill, modified by the amendment printed in the report of the Committee on Rules accompanying this resolution, shall be considered as adopted
action_date: 2007-10-10
text: Considered under the provisions of rule H. Res. 719. (consideration: CR H11400-11410, H11446-11464; text: CR H11400)
action_date: 2007-10-10
text: Rule H. Res. 719 passed House.
action_date: 2007-10-09
text: Rules Committee Resolution H. Res. 719 Reported to House. Rule provides for consideration of H.R. 3056 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 or rule XXI. The amendment in the nature of a substitute recommended by the Committee on Ways and Means now printed in the bill, modified by the amendment printed in the report of the Committee on Rules accompanying this resolution, shall be considered as adopted
action_date: 2007-07-31
text: Placed on the Union Calendar, Calendar No. 182.
action_date: 2007-07-31
text: Reported (Amended) by the Committee on Ways and Means. H. Rept. 110-281.
action_date: 2007-07-31
text: Reported (Amended) by the Committee on Ways and Means. H. Rept. 110-281.
action_date: 2007-07-18
text: Ordered to be Reported (Amended) by the Yeas and Nays: 23 - 18.
action_date: 2007-07-18
text: Committee Consideration and Mark-up Session Held.
action_date: 2007-07-17
text: Referred to the House Committee on Ways and Means.
action_date: 2007-07-17
text: Introduced in House
action_date: 2007-07-17
text: Introduced in House