An original bill to amend the Internal Revenue Code of 1986 to improve access and administration of the United States Tax Court.

Bill: 114-s-903
Sponsor: full_name: Sen. Hatch, Orrin G. [R-UT]
Introduced: 2015-04-14
Policy area: Taxation
Subjects: Administrative remedies

Bankruptcy

Debt collection

Evidence and witnesses

Government ethics and transparency, public corruption

Interest, dividends, interest rates

Judges

Judicial procedure and administration

Judicial review and appeals

Jurisdiction and venue

Legal fees and court costs

Specialized courts

Tax administration and collection, taxpayers
Latest action: action_date: 2015-04-14
text: Placed on Senate Legislative Calendar under General Orders. Calendar No. 37.

Summaries:
action_date: 2015-04-14
action_desc: Introduced in Senate
text: <p>This bill amends the Internal Revenue Code, with respect to the administration and rules of the U.S. Tax Court, to: (1) change the period for bringing an action in Tax Court to review the denial of a request for the abatement of interest; (2) allow an abatement denial case in which the amount of the abatement sought does not exceed $50,000 to be brought using small tax case procedures; (3) establish rules, in innocent spouse and collection due process cases, for venue and for suspension of running of periods for filing; (4) make the Federal Rules of Evidence applicable in Tax Court proceedings; and (5) require all fees received by the Tax Court to be deposited into a special fund and made available to the Court for its operation and maintenance.</p> <p>The bill also directs the Tax Court to prescribe rules for the filing of misconduct complaints against any judge or magistrate judge of the Court. The Chief Judge of the Tax Court is authorized to summon the judges and magistrate judges of the Court to an annual judicial conference for the purpose of considering the business of the Court and recommending means to improve the administration of justice within the Court's jurisdiction. </p> <p>The bill declares that the Tax Court is not an agency of, and shall be independent of, the executive branch. </p>

action_date: 2015-04-14
action_desc: Reported to Senate without amendment
text: <p>(This measure has not been amended since it was introduced. The summary has been expanded because action occurred on the measure.)</p> <p>This bill amends the Internal Revenue Code to modify the rules and administrative provisions governing the U.S. Tax Court, a court established under Article I of the Constitution. </p> <p>TITLE I--TAXPAYER ACCESS TO UNITED STATES TAX COURT</p> <p>(Sec. 101) This section changes the period for filing an action in the Tax Court for review of a denial by the Department of the Treasury of a request to abate interest. The action may be filed in Tax Court at any time after the earlier of the date of the mailing of Treasury's final determination not to abate such interest or the date that is 180 days after the filing of a claim for abatement, but not later that 180 days after Treasury's final determination. </p> <p>(Sec. 102) This section allows the filing of an action in Tax Court for review of a denial to abate interest not exceeding $50,000 as a small tax case, thus providing for expedited review. </p> <p>(Sec. 103) This section provides that: (1) venue in an innocent spouse relief petition is the legal residence of the petitioner; and (2) venue in a collection due process proceeding is the legal residence of an individual petitioner or the principal place of business or principal office or agency if the the petitioner is an entity other than an individual. An innocent spouse relief petition is a petition filed by a husband or wife claiming, in good faith, ignorance of violations of tax law by the other spouse (e.g., failure to report income or improper claims of tax credits or deductions), thus resulting in unexpected tax liability for the innocent spouse. </p> <p>(Sec. 104) This section provides for a suspension of the running of the period of limitations on filing petitions for innocent spouse relief and a collection due process hearing for taxpayers in bankruptcy who are prohibited from filing such petitions.</p> <p>(Sec. 105) This section makes the Federal Rules of Evidence applicable to proceedings of the Tax Court. </p> <p>TITLE II--UNITED STATES TAX COURT ADMINISTRATION </p> <p>(Sec. 201) This section directs the Tax Court to prescribe rules for the filing of complaints with respect to the conduct of any judge or magistrate judge of the Court and for the investigation and resolution of such complaints. In investigating and taking action on any complaint, the Court shall have the powers granted to a judicial council under the federal judicial code. </p> <p>(Sec.202) This section grants the Tax Court the same management, administrative, and expenditure authority as is granted to other federal courts with general jurisdiction under Article III of the Constitution. </p> <p>The Chief Judge may summon the judges and magistrate judges of the Court to an annual judicial conference to consider the business of the Court and make recommendations to improve the administration of justice with the jurisdiction of the Court. The Court may impose a reasonable registration fee on persons, other than judges and magistrate judges, who attend the judicial conference to defray costs of the conference. </p> <p>All fees received by the Tax Court shall be deposited into a special fund of the Treasury and made available to offset funds appropriated for the operation and maintenance of the Court. </p> <p>TITLE III--CLARIFICATION RELATING TO UNITED STATES TAX COURT </p> <p>(Sec. 301) This section declares that the Tax Court is not an agency of, and shall be independent of, the executive branch. </p>

tv_txt: II Calendar No. 37 114th CONGRESS 1st Session S. 903 [Report No. 114–14] IN THE SENATE OF THE UNITED STATES April 14, 2015 Mr. Hatch , from the Committee on Finance , reported the following original bill; which was read twice and placed on the calendar A BILL To amend the Internal Revenue Code of 1986 to improve access and administration of the United States Tax Court.

1. Amendment of 1986 Code; table of contents (a) 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. (b) Table of contents The table of contents of this Act is as follows: Sec. 1. Amendment of 1986 Code; table of contents. TITLE I—Taxpayer access to United States Tax Court Sec. 101. Filing period for interest abatement cases. Sec. 102. Small tax case election for interest abatement cases. Sec. 103. Venue for appeal of spousal relief and collection cases. Sec. 104. Suspension of running of period for filing petition of spousal relief and collection cases. Sec. 105. Application of Federal rules of evidence. TITLE II—United States Tax Court administration Sec. 201. Judicial conduct and disability procedures. Sec. 202. Administration, judicial conference, and fees. TITLE III—Clarification relating to United States Tax Court Sec. 301. Clarification relating to United States Tax Court. I Taxpayer access to United States Tax Court 101. Filing period for interest abatement cases (a) In general Subsection (h) of section 6404 is amended— (1) by striking Review of denial in the heading and inserting Judicial review , and (2) by striking if such action is brought and all that follows in paragraph (1) and inserting “if such action is brought— (A) at any time after the earlier of— (i) the date of the mailing of the Secretary’s final determination not to abate such interest, or (ii) the date which is 180 days after the date of the filing with the Secretary (in such form as the Secretary may prescribe) of a claim for abatement under this section, and (B) not later than the date which is 180 days after the date described in subparagraph (A)(i). . (b) Effective date The amendments made by this section shall apply to claims for abatement of interest filed with the Secretary of the Treasury after the date of the enactment of this Act. 102. Small tax case election for interest abatement cases (a) In general Subsection (f) of section 7463 is amended— (1) by striking and at the end of paragraph (1), (2) by striking the period at the end of paragraph (2) and inserting , and , and (3) by adding at the end the following new paragraph: (3) a petition to the Tax Court under section 6404(h) in which the amount of the abatement sought does not exceed $50,000. . (b) Effective date The amendments made by this section shall apply to cases pending as of the day after the date of the enactment of this Act, and cases commenced after such date of enactment. 103. Venue for appeal of spousal relief and collection cases (a) In general Paragraph (1) of section 7482(b) is amended— (1) by striking or at the end of subparagraph (E), (2) by striking the period at the end of subparagraph (F) and inserting a comma, and (3) by inserting after subparagraph (F) the following new subparagraphs: (G) in the case of a petition under section 6015(e), the legal residence of the petitioner, or (H) in the case of a petition under section 6320 or 6330— (i) the legal residence of the petitioner if the petitioner is an individual, and (ii) the principal place of business or principal office or agency if the petitioner is an entity other than an individual. . (b) Effective date (1) In general The amendments made by this section shall apply to petitions filed after the date of enactment of this Act. (2) Effect on existing proceedings Nothing in this section shall be construed to create any inference with respect to the application of section 7482 of the Internal Revenue Code of 1986 with respect to court proceedings filed on or before the date of the enactment of this Act. 104. Suspension of running of period for filing petition of spousal relief and collection cases (a) Petitions for spousal relief (1) In general Subsection (e) of section 6015 is amended by adding at the end the following new paragraph: (6) Suspension of running of period for filing petition in title 11 cases In the case of a person who is prohibited by reason of a case under title 11, United States Code, from filing a petition under paragraph (1)(A) with respect to a final determination of relief under this section, the running of the period prescribed by such paragraph for filing such a petition with respect to such final determination shall be suspended for the period during which the person is so prohibited from filing such a petition, and for 60 days thereafter. . (2) Effective date The amendment made by this subsection shall apply to petitions filed under section 6015(e) of the Internal Revenue Code of 1986 after the date of the enactment of this Act. (b) Collection proceedings (1) In general Subsection (d) of section 6330 is amended— (A) by striking appeal such determination to the Tax Court in paragraph (1) and inserting petition the Tax Court for review of such determination , (B) by striking Judicial review of determination in the heading of paragraph (1) and inserting Petition for review by tax court , (C) by redesignating paragraph (2) as paragraph (3), and (D) by inserting after paragraph (1) the following new paragraph: (2) Suspension of running of period for filing petition in title 11 cases In the case of a person who is prohibited by reason of a case under title 11, United States Code, from filing a petition under paragraph (1) with respect to a determination under this section, the running of the period prescribed by such subsection for filing such a petition with respect to such determination shall be suspended for the period during which the person is so prohibited from filing such a petition, and for 30 days thereafter, and . (2) Effective date The amendments made by this subsection shall apply to petitions filed under section 6330 of the Internal Revenue Code of 1986 after the date of the enactment of this Act. (c) Conforming amendment Subsection (c) of section 6320 is amended by striking (2)(B) and inserting (3)(B) . 105. Application of Federal rules of evidence (a) In general Section 7453 is amended by striking “the rules of evidence applicable in trials without a jury in the United States District Court of the District of Columbia” and inserting the Federal Rules of Evidence . (b) Effective date The amendment made by this section shall apply to proceedings commenced after the date of the enactment of this Act and, to the extent that it is just and practicable, to all proceedings pending on such date. II United States Tax Court administration 201. Judicial conduct and disability procedures (a) In general Part II of subchapter C of chapter 76 is amended by adding at the end the following new section: 7466. Judicial conduct and disability procedures (a) In general The Tax Court shall prescribe rules, consistent with the provisions of chapter 16 of title 28, United States Code, establishing procedures for the filing of complaints with respect to the conduct of any judge or magistrate judge of the Tax Court and for the investigation and resolution of such complaints. In investigating and taking action with respect to any such complaint, the Tax Court shall have the powers granted to a judicial council under such chapter. (b) Judicial council The provisions of sections 354(b) through 360 of title 28, United States Code, regarding referral or certification to, and petition for review in the Judicial Conference of the United States, and action thereon, shall apply to the exercise by the Tax Court of the powers of a judicial council under subsection (a). The determination pursuant to section 354(b) or 355 of title 28, United States Code, shall be made based on the grounds for removal of a judge from office under section 7443(f), and certification and transmittal by the Conference of any complaint shall be made to the President for consideration under section 7443(f). (c) Hearings (1) In general In conducting hearings pursuant to subsection (a), the Tax Court may exercise the authority provided under section 1821 of title 28, United States Code, to pay the fees and allowances described in that section. (2) Reimbursement for expenses The Tax Court shall have the power provided under section 361 of such title 28 to award reimbursement for the reasonable expenses described in that section. Reimbursements under this paragraph shall be made out of any funds appropriated for purposes of the Tax Court. . (b) Clerical amendment The table of sections for part II of subchapter C of chapter 76 is amended by adding at the end the following new item: Sec. 7466. Judicial conduct and disability procedures. . (c) Effective date The amendments made by this section shall apply to proceedings commenced after the date which is 180 days after the date of the enactment of this Act and, to the extent just and practicable, all proceedings pending on such date. 202. Administration, judicial conference, and fees (a) In general Part III of subchapter C of chapter 76 is amended by inserting before section 7471 the following new sections: 7470. Administration Notwithstanding any other provision of law, the Tax Court may exercise, for purposes of management, administration, and expenditure of funds of the Court, the authorities provided for such purposes by any provision of law (including any limitation with respect to such provision of law) applicable to a court of the United States (as that term is defined in section 451 of title 28, United States Code), except to the extent that such provision of law is inconsistent with a provision of this subchapter. 7470A. Judicial conference (a) Judicial conference The chief judge may summon the judges and magistrate judges of the Tax Court to an annual judicial conference, at such time and place as the chief judge shall designate, for the purpose of considering the business of the Tax Court and recommending means of improving the administration of justice within the jurisdiction of the Tax Court. The Tax Court shall provide by its rules for representation and active participation at such conferences by persons admitted to practice before the Tax Court and by other persons active in the legal profession. (b) Registration fee The Tax Court may impose a reasonable registration fee on persons (other than judges and magistrate judges of the Tax Court) participating at judicial conferences convened pursuant to subsection (a). Amounts so received by the Tax Court shall be available to the Tax Court to defray the expenses of such conferences. . (b) Disposition of fees Section 7473 is amended to read as follows: 7473. Disposition of fees Except as provided in sections 7470A and 7475, all fees received by the Tax Court pursuant to this title shall be deposited into a special fund of the Treasury to be available to offset funds appropriated for the operation and maintenance of the Tax Court. . (c) Clerical amendments The table of sections for part III of subchapter C of chapter 76 is amended by inserting before the item relating to section 7471 the following new items: Sec. 7470. Administration. Sec. 7470A. Judicial conference. . III Clarification relating to United States Tax Court 301. Clarification relating to United States Tax Court Section 7441 is amended by adding at the end the following: The Tax Court is not an agency of, and shall be independent of, the executive branch of the Government. .

April 14, 2015 Read twice and placed on the calendar