TASK DEFINITION: In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
PROBLEM: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Teacher and Nurse Support Act of 
2007''.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds the following:
            (1) According to the National Center for Education 
        Statistics, over the next 10 years, the United States will need 
        more than 2,000,000 new teachers to replace the teachers who 
        are retiring or leaving the classroom for other careers.
            (2) The Hart-Rudman National Security Report on education 
        recommended that the President direct the Department of 
        Education to work with the States to devise a comprehensive 
        plan to avert a looming shortage of high-quality teachers.
            (3) According to the National Center for Education 
        Statistics, 20 percent of all new teachers leave the teaching 
        profession within 3 years. Providing loan forgiveness or loan 
        cancellation is one step that would help retain high-quality 
        teachers in schools that need teachers.
            (4) The American Hospital Association has reported more 
        than 118,000 unfilled registered nurse positions in hospitals 
        in the United States. Additionally, the National Commission on 
        Nursing Workforce for Long-Term Care released a report in May, 
        2005, stating that there are nearly 100,000 vacant nursing 
        positions in long-term care facilities on any given day, and 
        the nurse turnover rate exceeds 50 percent. The shortage is 
        costing long-term care facilities an estimated $4 billion a 
        year in recruitment and training expenses.
            (5) College loans are more of a burden than ever for 
        students and families. According to a recent United States 
        Public Interest Research Group report, average student loan 
        debt almost doubled from $9,200 in 1992-1993 to $16,928 in 
        1999-2000.
    (b) Purpose.--The purpose of this Act is to improve access to, and 
the delivery of, high-quality educational and health services 
throughout the United States by reducing the shortage of qualified 
teachers and nurses.

SEC. 3. LOAN FORGIVENESS.

    (a) Loan Forgiveness.--Section 428J of the Higher Education Act of 
1965 (20 U.S.C. 1078-10) is amended to read as follows:

``SEC. 428J. LOAN FORGIVENESS FOR TEACHERS AND NURSES.

    ``(a) Statement of Purpose.--It is the purpose of this section to 
encourage individuals to enter and continue in the teaching and nursing 
professions.
    ``(b) Program Authorized.--
            ``(1) In general.--The Secretary shall carry out a program 
        to forgive, in accordance with this section, the student loan 
        debt of any borrower who has one or more loans described under 
        paragraph (2) made on or after October 1, 1998, and who--
                    ``(A) has been employed--
                            ``(i) as a full-time teacher--
                                    ``(I) in a school that qualifies 
                                under section 465(a)(2)(A) for loan 
                                cancellation for Perkins loan 
                                recipients who teach in those schools;
                                    ``(II) if employed as a secondary 
                                school teacher, is teaching a subject 
                                area that is relevant to the borrower's 
                                academic major as certified by the 
                                chief administrative officer of the 
                                public or nonprofit private secondary 
                                school in which the borrower is 
                                employed; and
                                    ``(III) if employed as an 
                                elementary school teacher, has 
                                demonstrated, as certified by the chief 
                                administrative officer of the public or 
                                nonprofit private elementary school in 
                                which the borrower is employed, 
                                knowledge and teaching skills in 
                                reading, writing, mathematics, and 
                                other areas of the elementary school 
                                curriculum; or
                            ``(ii) as a full-time eligible nurse--
                                    ``(I) in a clinical setting; or
                                    ``(II) as a member of the nursing 
                                faculty at an accredited school of 
                                nursing (as those terms are defined in 
                                section 801 of the Public Health 
                                Service Act (42 U.S.C. 296)); and
                    ``(B) is not in default on a loan for which the 
                borrower seeks forgiveness.
            ``(2) Method of loan forgiveness.--To provide the loan 
        forgiveness authorized in paragraph (1), the Secretary shall, 
        subject to paragraph (3), carry out a program--
                    ``(A) through the holder of the loan, to assume the 
                obligation to repay a qualified loan amount (as 
                determined under subsection (c)) for a loan made under 
                section 428 or 428H of this part; and
                    ``(B) to cancel a qualified loan amount (as so 
                determined) for a Federal Direct Stafford Loan or a 
                Federal Direct Unsubsidized Stafford Loan made under 
                part D of this title;
            ``(3) Treatment of consolidation loans.--A loan amount for 
        a loan made under section 428C or section 455(g) may be a 
        qualified loan amount for the purposes of paragraph (2) only to 
        the extent that such loan amount was used to repay a loan made 
        under section 428 or 428H, a Federal Direct Stafford Loan, or a 
        Federal Direct Unsubsidized Stafford Loan for a borrower who 
        meets the requirements of paragraph (1), as determined in 
        accordance with regulations prescribed by the Secretary.
    ``(c) Qualified Loan Amount.--
            ``(1) In general.--
                    ``(A) Aggregate amount.--The Secretary shall, in 
                installments in accordance with subparagraph (B), 
                forgive under this section not more than $17,500 in the 
                aggregate of the student loan obligation of a borrower.
                    ``(B) Annual installments.--The Secretary shall 
                forgive the student loan obligation of a borrower in 
                annual installments after each of 5 years of service 
                described in clause (i) or (ii) of subsection 
                (b)(1)(A)(i) in an amount not to exceed the lesser of 
                the remaining outstanding obligation of the borrower 
                or--
                            ``(i) $2,000 at the completion of the first 
                        year of such service;
                            ``(ii) $2,500 at the completion of the 
                        second year of such service;
                            ``(iii) $3,500 at the completion of the 
                        third year of such service;
                            ``(iv) $4,500 at the completion of the 
                        fourth year of such service; and
                            ``(v) $5,000 at the completion of the fifth 
                        year of such service.
            ``(2) Forbearance on qualified loan amount.--A holder of a 
        loan on which a borrower is seeking forgiveness under this 
        section--
                    ``(A) shall grant forbearance, at the request of 
                the borrower, in annual increments for each of the 
                years of qualifying service if the holder believes, at 
                the time of the borrower's annual request, that the 
                amount expected to be forgiven under this section at 
                the completion of the period of qualifying service will 
                satisfy the anticipated remaining outstanding balance 
                on the loan; and
                    ``(B) may offer other forbearance options to the 
                borrower.
    ``(d) Regulations.--The Secretary is authorized to issue such 
regulations as may be necessary to carry out the provisions of this 
section.
    ``(e) Construction.--Nothing in this section shall be construed to 
authorize any refunding of any repayment of a loan.
    ``(f) List of Schools.--If the list of schools in which a teacher 
may perform service pursuant to subsection (b)(1)(A)(i) is not 
available before May 1 of any year, the Secretary may use the list for 
the year preceding the year for which the determination is made to make 
the service determination.
    ``(g) Additional Eligibility Provisions.--
            ``(1) Continued eligibility for teachers.--Any teacher who 
        performs service in a school that--
                    ``(A) meets the requirements of subsection 
                (b)(1)(A)(i)(I) in any year during such service; and
                    ``(B) in a subsequent year fails to meet the 
                requirements of that subsection,
        may continue to teach in the school and shall be eligible for 
        loan forgiveness pursuant to subsection (b).
            ``(2) Prevention of double benefits.--No borrower may, for 
        the same service, receive a benefit under both this subsection 
        and--
                    ``(A) subtitle D of title I of the National and 
                Community Service Act of 1990 (42 U.S.C. 12571 et 
                seq.); or
                    ``(B) section 846 of the Public Health Service Act 
                (42 U.S.C. 297n).
    ``(h) Definitions.--In this section:
            ``(1) Eligible nurse.--The term `eligible nurse' means a 
        nurse who meets all of the following:
                    ``(A) The nurse graduated from--
                            ``(i) an accredited school of nursing (as 
                        those terms are defined in section 801 of the 
                        Public Health Service Act (42 U.S.C. 296));
                            ``(ii) a nursing center; or
                            ``(iii) an academic health center that 
                        provides nurse training.
                    ``(B) The nurse holds a valid and unrestricted 
                license to practice nursing in the State in which the 
                nurse practices in a clinical setting.
                    ``(C) The nurse holds 1 or more of the following:
                            ``(i) A graduate degree in nursing or 
                        equivalent degree.
                            ``(ii) A nursing degree from a collegiate 
                        school of nursing (as defined in section 801 of 
                        the Public Health Service Act (42 U.S.C. 296)).
                            ``(iii) A nursing degree from an associate 
                        degree school of nursing (as defined in section 
                        801 of the Public Health Service Act (42 U.S.C. 
                        296)).
                            ``(iv) A nursing degree from a diploma 
                        school of nursing (as defined in section 801 of 
                        the Public Health Service Act (42 U.S.C. 296)).
            ``(2) Year.--The term `year', where applied to service as a 
        teacher (or service as a member of the nursing faculty at an 
        accredited school of nursing (as those terms are defined in 
        section 801 of the Public Health Service Act (42 U.S.C. 296))), 
        means an academic year as defined by the Secretary.''.
    (b) Repeal of Loan Cancellation Provision.--Section 460 of the 
Higher Education Act of 1965 (20 U.S.C. 1087j) is repealed.

SEC. 4. PHASE OUT OF CURRENT PROGRAM.

    An individual who began the required period of teaching described 
in section 428J(b)(1) or 460(b)(1)(A) of the Higher Education Act of 
1965 (20 U.S.C. 1078-10 and 1087j) as such sections were in effect on 
the day before the date of enactment of this Act, shall--
            (1) be eligible to receive loan forgiveness or loan 
        cancellation in the amount described in, and in accordance with 
        the requirements of, such sections as in effect on the day 
        before the date of enactment of this Act; and
            (2) not be eligible to receive loan forgiveness under 
        section 428J of the Higher Education Act of 1965 as in effect 
        on the date of enactment of this Act.

SOLUTION: Teacher and Nurse Support Act of 2007 - Amends the Higher Education Act of 1965 to increase to a maximum of $17,500 the aggregate student loan obligation eligible for forgiveness or cancellation under the Federal Family Education Loan or Direct Loan programs for teachers who serve full-time in certain elementary or secondary schools that enroll a high proportion of disadvantaged students.

Includes, under these student loan forgiveness and cancellation programs, nurses who serve in a clinical setting or as a member of the nursing faculty at an accredited school of nursing. Directs the Secretary of Education to repay such loan obligation in annual installments up to specified maximum amounts after each of five years of such service.

PROBLEM: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Family Telephone Connection 
Protection Act of 2005''.

SEC. 2. FINDINGS.

    The Congress finds that:
            (1) The telephone is the primary method by which 
        individuals correspond and maintain contact with family members 
        who are incarcerated in correctional institutions.
            (2) Except for emergency purposes, family members are not 
        allowed to call people incarcerated in correctional 
        institutions; incarcerated persons are typically allowed to 
        call family members and other pre-approved individuals only 
        through payphones physically located on the premises of 
        correctional institutions.
            (3) Inmate telephone service in correctional institutions 
        often is limited to collect calling.
            (4) Regardless of whether the prisoners' calls are placed 
        collect or through a debit account, the prisoners' family 
        members typically pay for the calls, either through their 
        telephone bills, in the case of collect calls received from 
        prisoners, or by making deposits directly into prisoners' debit 
        accounts.
            (5) Innocent citizens are paying excessive telephone 
        charges simply due to having a family member or loved one who 
        is incarcerated.
            (6) The rates for calls from correctional institutions are 
        some of the highest rates in the United States, with some per-
        minute charges reaching $1 and service or connection charges of 
        $3.95 per call.
            (7) Information compiled by the Congress and the Federal 
        Communications Commission shows that the high rates are due in 
        part to the lack of competition between telephone companies 
        that provide long distance inmate telephone service to 
        correctional institutions.
            (8) There are no competitive forces providing incentives 
        for those carriers to lower prices or operate efficiently 
        because, unlike the mass market, only one carrier is typically 
        permitted to provide long distance inmate telephone service 
        within each correctional institution.
            (9) High calling rates also are due in part to commissions 
        that carriers pay to correctional institution administrators 
        for the exclusive right to provide long distance inmate 
        telephone service in a correctional facility. In some cases, 
        such commissions account for 50 percent or more of the total 
        charges.
            (10) The collection of such commissions by correctional 
        institution administrators and state departments of correction 
        based upon interstate telecommunications revenues is a burden 
        on interstate commerce.
            (11) Due to the lack of competition for telephone services 
        within correctional institutions, families of people in prison, 
        many of whom have low incomes, cannot choose the long distance 
        carrier with the lowest calling rates and must pay the 
        excessive rates charged by the carrier having the exclusive 
        right to provide long distance service to the correctional 
        institution from which the call originates.
            (12) It is the policy of the United States to ensure that 
        all Americans are afforded just and reasonable communications 
        services, including those families that pay rates for inmate 
        telephone service.
            (13) It is clear from various studies that maintaining 
        frequent and meaningful communications between people who are 
        incarcerated and family members is key to the successful social 
        reintegration of formerly incarcerated individuals. Such 
        contact reduces recidivism and facilitates rehabilitation, 
        which in turn reduces crime and the future costs of 
        imprisonment.
            (14) Frequent communications between incarcerated persons 
        and family members is burdened, and in some cases, prevented, 
        by excessive inmate telephone service rates. Excessive inmate 
        telephone service rates thus weaken the family and community 
        ties that are necessary for successful reentry into society by 
        persons who were formerly incarcerated and the reduction in 
        crime resulting from successful reentry.
            (15) The Commission has the expertise and authority to 
        regulate inmate telephone service. Because parties to 
        Commission rulemaking proceedings have raised issues regarding 
        its authority to implement meaningful relief for excessive 
        inmate telephone service rates, Congress finds it necessary and 
        appropriate to reaffirm that the Commission has the authority 
        to implement the types of relief set forth in this Act.

SEC. 3. RESTRICTIONS ON THE PROVISION OF INMATE TELEPHONE SERVICE.

    (a) Definitions.--Section 226(a) of the Communications Act of 1934 
(47 U.S.C. 226(a)) is amended adding at the end the following new 
paragraphs:
            ``(10) The term `collect' or `collect call' refers to a 
        telephone call from a person incarcerated in a correctional 
        institution that is billed to the subscriber receiving the 
        call.
            ``(11) The term `commission' refers to a fee or other 
        payment by a provider of inmate telephone service to an 
        administrator of a correctional institution, department of 
        correction, or similar entity, based upon, or partly upon, 
        inmate telephone service revenue.
            ``(12) The term `debit account' refers to the payment of 
        inmate telephone service through a prisoner's prepaid card or 
        other account, which can be accessed only through an access 
        code, personal identification number, or similar identifier.
            ``(13) The term `inmate telephone service' includes the 
        provision of telephone service enabling persons incarcerated in 
        correctional institutions to originate interstate calls at 
        payphones or other telephones that are designated for 
        prisoners' personal use, regardless of whether the calls are 
        collect, paid through a debit account, or paid through any 
        other means.
            ``(14) The term `provider of inmate telephone service' 
        means any common carrier that provides inmate telephone service 
        or any other person determined by the Commission to be 
        providing inmate telephone service.''.
    (b) Regulations.--Section 226 is further amended--
            (1) by redesignating subsection (i) as subsection (k); and
            (2) inserting after subsection (h) the following new 
        subsections:
    ``(i) Regulation of Inmate Telephone Service.--
            ``(1) Rates.--In order to ensure that charges for inmate 
        telephone service are just, reasonable, and nondiscriminatory, 
        the Commission shall consider, either in a rulemaking 
        proceeding that is pending as of the date of enactment of the 
        Family Telephone Connection Protection Act of 2005 or in a new 
        rulemaking proceeding, the following types of regulation of 
        inmate telephone service, all of which are within the 
        Commission's jurisdiction and authority:
                    ``(A) prescribing a maximum uniform per-minute 
                compensation rate;
                    ``(B) prescribing a maximum uniform service 
                connection or other per-call compensation rate;
                    ``(C) prescribing variable maximum compensation 
                rates depending on such factors as carrier costs, the 
                size of the correctional facility served, and other 
                relevant factors identified by the Commission;
                    ``(D) requiring providers of inmate telephone 
                service to offer both collect calling and debit account 
                services;
                    ``(E) prohibiting the payment of commissions by 
                providers of inmate telephone service to administrators 
                of correctional institutions, departments of 
                correction, and similar entities; and
                    ``(F) requiring administrators of correctional 
                institutions, departments of correction, and similar 
                entities to allow more than one provider of inmate 
                telephone service to provide interstate inmate 
                telephone service at a correctional institution in 
                order that prisoners have a choice of such providers.
            ``(2) Scope.--The regulations adopted by the Commission 
        shall be technologically neutral and shall not jeopardize 
        legitimate security and penelogical interests. To the extent 
        the Commission regulations reduce or eliminate the revenue 
        derived by administrators of correctional institutions, 
        departments of correction, and similar entities from the 
        receipt of commissions, such effects of Commission regulations 
        shall not be considered as jeopardizing or otherwise affecting 
        legitimate security or penelogical interests.
            ``(3) Deadlines and periodic review.--The Commission shall 
        prescribe regulations to implement the provisions of this 
        subsection within one year after the date of enactment of the 
        Family Telephone Connection Protection Act of 2005. The 
        Commission shall review, on a triennial basis, the regulations 
        promulgated under this subsection, including whether any 
        Commission-established compensation rates should be modified.
            ``(4) State preemption.--To the extent that any State 
        requirements are inconsistent with the Commission's regulations 
        affecting or pertaining to interstate inmate telephone service, 
        including restrictions on the payment of commissions based upon 
        interstate inmate telephone service revenues or earnings, the 
        Commission's regulations on such matters shall preempt such 
        State requirements.
    ``(j) Inmate Telephone Service Fully Subject to Sections 251 and 
252.--
            ``(1) Inmate telephone service is fully subject to the 
        requirements of sections 251 and 252 of this Act.
            ``(2) No provider of inmate telephone service may block or 
        otherwise refuse to carry a call placed by an incarcerated 
        person on the grounds that the provider has no contractual or 
        other arrangement with the local exchange carrier serving the 
        intended recipient of the call or other common carrier involved 
        in any portion of the transmission of the call.''.

SOLUTION: Family Telephone Connection Protection Act of 2005 - Amends the Communications Act of 1934 to direct the Federal Communications Commission (FCC) to consider the following types of regulation of inmate telephone service: (1) prescribing a maximum uniform per-minute rate (paid to telephone service providers); (2) prescribing a maximum uniform service connection or other per-call rate; (3) prescribing variable maximum rates depending on factors such as carrier costs or the size of the correctional facility; (4) requiring providers of inmate telephone service to offer both collect calling and debit account services; (5) prohibiting the payment of commissions by such providers to administrators of correctional facilities; and (6) requiring such administrators to allow more than one service provider at a facility so that prisoners have a choice.

PROBLEM: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Internal Revenue Service 
Accountability Act''.

SEC. 2. CRIMINAL PENALTY FOR CERTAIN UNAUTHORIZED ACTIONS.

    (a) In General.--Section 7214 of the Internal Revenue Code of 1986 
(relating to offenses by officers and employees of the United States) 
is amended--
            (1) by striking ``or'' at the end of paragraph (8),
            (2) by adding ``or'' at the end of paragraph (9),
            (3) by inserting after paragraph (9) the following new 
        paragraph:
            ``(10) who willfully and maliciously disregards such law, 
        or any regulation promulgated under such law, relating to any 
        proceeding against any taxpayer;'', and
            (4) by striking ``$10,000, or imprisoned not more than 5 
        years, or both'' and inserting ``$10,000 ($1,000, in the case 
        of an offense under paragraph (10)), or imprisoned not more 
        than 5 years (1 year, in the case of an offense under paragraph 
        (10), or both''.
    (b) Effective Date.--The amendments made by this section shall 
apply to actions by officers or employees after the date of the 
enactment of this Act.

SEC. 3. INTERNAL REVENUE SERVICE EMPLOYEES PERSONALLY LIABLE FOR 
              DAMAGES AND LITIGATION COSTS IN CERTAIN CASES.

    (a) Litigation Costs.--Section 7430 of the Internal Revenue Code of 
1986 (relating to awarding of costs and certain fees) is amended by 
adding at the end the following new subsection:
    ``(g) Personal Liability of Internal Revenue Service Officers and 
Employees in Certain Cases.--
            ``(1) In general.--In any proceeding in which the 
        prevailing party is awarded a judgment for reasonable 
        litigation costs under this section, the court may assess a 
        portion of such costs against any Internal Revenue Service 
        officer or employee (and such officer or employee shall not be 
        reimbursed by the United States for the costs so assessed) if 
        the court determines that such proceeding resulted from any 
        arbitrary, capricious, or malicious act of such officer or 
        employee. For purposes of this section, the term `officer or 
        employee' includes a former officer or employee.
            ``(2) Representation of officer or employee.--Upon the 
        request of any Internal Revenue Service officer or employee, 
        such officer or employee may be represented by the United 
        States in any proceeding with respect to the issue of whether 
        there is to be an assessment against such officer or employee 
        under paragraph (1). If, in any case in which such an officer 
        or employee is so represented by the United States, it is 
        finally determined that such officer or employee is liable for 
        an assessment under paragraph (1), such officer or employee 
        shall also be liable to repay the United States for the costs 
        of its representation under this paragraph.''.
    (b) Civil Damages and Court Costs for Failure To Release Lien.--
Section 7432 of the Internal Revenue Code of 1986 (relating to civil 
damages for failure to release lien) is amended by adding at the end 
the following new subsection:
    ``(f) Personal Liability of Internal Revenue Service Officers and 
Employees in Certain Cases.--
            ``(1) In general.--In any proceeding in which the 
        prevailing plaintiff is awarded a judgment under this section 
        for damages described in subsection (b), the court may assess a 
        portion of such damages against any Internal Revenue Service 
        officer or employee (and such officer or employee shall not be 
        reimbursed by the United States for the damages so assessed) if 
        the court determines that such proceeding resulted from any 
        arbitrary, capricious, or malicious act of such officer or 
        employee. For purposes of this section, the term `officer or 
        employee' includes a former officer or employee.
            ``(2) Representation of officer or employee.--Upon the 
        request of any Internal Revenue Service officer or employee, 
        such officer or employee may be represented by the United 
        States in any proceeding with respect to the issue of whether 
        there is to be an assessment against such officer or employee 
        under paragraph (1). If, in any case in which such an officer 
        or employee is so represented by the United States, it is 
        finally determined that such officer or employee is liable for 
        an assessment under paragraph (1), such officer or employee 
        shall also be liable to repay the United States for the costs 
        of its representation under this paragraph.''.
    (c) Civil Damages and Court Costs for Certain Unauthorized 
Collection Actions.--Section 7433 of the Internal Revenue Code of 1986 
(relating to civil damages for certain unauthorized collection actions) 
is amended by adding at the end the following new subsection:
    ``(e) Personal Liability of Internal Revenue Service Officers and 
Employees in Certain Cases.--
            ``(1) In general.--In any proceeding in which the 
        prevailing plaintiff is awarded a judgment for damages 
        described in subsection (b), the court may assess a portion of 
        such damages against any Internal Revenue Service officer or 
        employee (and such officer or employee shall not be reimbursed 
        by the United States for the damages so assessed) if the court 
        determines that such proceeding resulted from any arbitrary, 
        capricious, or malicious act of such officer or employee. For 
        purposes of this section, the term `officer or employee' 
        includes a former officer or employee.
            ``(2) Representation of officer or employee.--Upon the 
        request of any Internal Revenue Service officer or employee, 
        such officer or employee may be represented by the United 
        States in any proceeding with respect to the issue of whether 
        there is to be an assessment against such officer or employee 
        under paragraph (1). If, in any case in which such an officer 
        or employee is so represented by the United States, it is 
        finally determined that such officer or employee is liable for 
        an assessment under paragraph (1), such officer or employee 
        shall also be liable to repay the United States for the costs 
        of its representation under this paragraph.''.
    (d) Effective Date.--The amendments made by this section shall 
apply in the case of proceedings commenced after the date of the 
enactment of this Act.

SEC. 4. PROTECTING THE PRIVACY OF TAXPAYERS.

    (a) Civil Penalty for Unauthorized Access of Returns and Return 
Information.--Section 7431 of the Internal Revenue Code of 1986 
(relating to civil damages for unauthorized disclosure of returns and 
return information) is amended--
            (1) by inserting ``or accesses'' after ``discloses'' in 
        subsection (a)(1),
            (2) by inserting ``or Access'' after ``Disclosure'' in the 
        heading for subsection (a)(1),
            (3) by inserting ``(or former officer or employee)'' after 
        ``officer or employee'' both places it appears in subsection 
        (a),
            (4) by inserting ``or access'' after ``disclosure'' each 
        place it appears in subsections (b), (c)(1), and (d),
            (5) by inserting ``the earlier of notification to or'' 
        after ``after the date of'' in subsection (d), and
            (6) by inserting ``or access'' after ``disclosure'' in the 
        heading.
    (b) Criminal Penalty for Unauthorized Access of Returns and Return 
Information.--Section 7213(a)(1) of the Internal Revenue Code of 1986 
(relating to Federal employees and other persons) is amended--
            (1) by striking ``this paragraph'' and inserting ``this 
        subparagraph'',
            (2) by striking ``It shall be unlawful'' and inserting the 
        following:
                    ``(A) Disclosure.--It shall be unlawful'', and
            (3) by adding at the end the following new subparagraph:
                    ``(B) Access.--It shall be unlawful for any 
                officer, employee, or other person described in 
                subparagraph (A) willfully to access without 
                authorization any return or return information (as 
                defined in section 6103(b)). Any violation of this 
                subparagraph shall be punishable by dismissal from 
                office or discharge from employment and, further, shall 
                be a misdemeanor punishable upon conviction by a fine 
                in any amount not exceeding $1,000, or imprisonment of 
                not more than 1 year, or both, together with costs of 
                prosecution, and, if necessary, by dismissal from 
                office or discharge from employment.''.
    (c) Notification of Unauthorized Access.--Section 6103 of the 
Internal Revenue Code of 1986 (relating to confidentiality and 
disclosure of returns and return information) is amended by 
redesignating subsection (q) as subsection (r) and by inserting after 
subsection (p) the following new subsection:
    ``(q) Unauthorized Access Prohibited.--
            ``(1) In general.--Except as authorized by this title, no 
        officer or employee (or former officer or employee) of the 
        United States shall access any return or return information.
            ``(2) Notification.--Upon discovery that a taxpayer's 
        return or return information has been accessed in violation of 
        paragraph (1), the taxpayer shall be notified immediately.''.
    (d) Conforming Amendment.--The table of sections for subchapter B 
of chapter 76 of the Internal Revenue Code of 1986 is amended by 
inserting ``or access'' after ``disclosure'' in the item relating to 
section 7431.
    (e) Effective Date.--The amendments made by this section shall 
apply to actions by officers or employees after the date of the 
enactment of this Act.

SEC. 5. LIMITATIONS ON EXAMINATIONS.

    (a) In General.--Section 7602 of the Internal Revenue Code of 1986 
(relating to examination of books and witnesses) is amended by adding 
at the end the following new subsection:
    ``(d) Limitations on Authority To Examine.--In taking any action 
under subsection (a), the Secretary--
            ``(1) shall demonstrate, upon demand of any person 
        described in subsection (a), reasonable justification (and not 
        random selection) for initiating an examination of a return, 
        and
            ``(2) shall not--
                    ``(A) initiate an examination of a return or issue 
                of a return if such return or issue of a return has 
                previously been examined, or
                    ``(B) extend back an examination under subsection 
                (a), once initiated, beyond a 3-taxable-year period 
                ending on the day before the beginning of the taxable 
                year which includes the date of initiation,
        except upon court approval if in the course of an investigation 
        into possible criminal activity.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to examinations initiated after the date of the enactment of this Act.

SEC. 6. EXTENSION OF TIME TO PAY TAX AFTER NOTICE AND DEMAND.

    (a) In General.--Section 6651(a)(3) of the Internal Revenue Code of 
1986 (relating to addition to the tax) is amended by striking ``21 
calendar days'' and inserting ``90 calendar days''.
    (b) Effective Date.--The amendment made by this section shall apply 
to notices and demands given after the date of the enactment of this 
Act.

SEC. 7. ENSURING THE INTEGRITY OF JUDICIAL PROCEEDINGS.

    (a) In General.--Subchapter B of chapter 76 of the Internal Revenue 
Code of 1986 (relating to proceedings by taxpayers and third parties) 
is amended by redesignating section 7436 as section 7437 and by 
inserting after section 7435 the following new section:

``SEC. 7436. DECLARATORY JUDGMENTS RELATING TO SECRETARIAL 
              NONACQUIESCENCE.

    ``In a case of actual controversy involving the Secretary's 
decision to not acquiesce with respect to conclusions of law in 
identical or similar cases to a case or cases previously decided within 
the same court jurisdiction or appellate circuit, upon the filing of an 
appropriate pleading and the exhaustion of administrative remedies 
available to the petitioner within the Internal Revenue Service, the 
district court for such jurisdiction may make a declaration with 
respect to the Secretary's decision. Any such declaration shall have 
the force and effect of a final judgment or decree of the district 
court and shall be reviewable as such.''.
    (b) Conforming Amendment.--The table of sections for such 
subchapter B is amended by striking the item relating to section 7436 
and inserting the following new items:

                              ``Sec. 7436. Declaratory judgments 
                                        relating to secretarial 
                                        nonacquiescence.
                              ``Sec. 7437. Cross references.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to court proceedings initiated after the date of the enactment of 
this Act.

SEC. 8. LIMITATIONS ON ASSET SEIZURES AND LEVIES.

    (a) In General.--Section 6331(a) of the Internal Revenue Code of 
1986 (relating to levy and distraint) is amended by inserting ``, upon 
the consent of an appropriate court,'' after ``it shall be lawful for 
the Secretary''.
    (b) Effective Date.--The amendment made by this section shall apply 
to levies initiated after the date of the enactment of this Act.

SEC. 9. NO INTEREST ON PENALTIES, ADDITIONAL AMOUNTS, AND ADDITIONS TO 
              TAX.

    (a) In General.--Section 6601(e)(2) of the Internal Revenue Code of 
1986 (relating to applicable rules) is amended to read as follows:
            ``(2) No interest on penalties, additional amounts, and 
        additions to tax.--Interest shall not be imposed under 
subsection (a) in respect of any assessable penalty, additional amount, 
or addition to tax.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to notices and demands given after the date of the enactment of this 
Act.

SEC. 10. INTEREST RATE FOR OVERPAYMENTS TO EQUAL RATE FOR 
              UNDERPAYMENTS.

    (a) In General.--Section 6621(a) of the Internal Revenue Code of 
1986 (relating to determination of rate of interest) is amended to read 
as follows:
    ``(a) General Rule.--The overpayment rate and the underpayment rate 
established under this section shall be the Federal short-term rate 
determined under subsection (b).''.
    (b) Conforming Amendment.--Section 6621 of the Internal Revenue 
Code of 1986 (relating to determination of rate of interest) is amended 
by striking subsection (c).
    (c) Effective Date.--The amendments made by this section shall 
apply for purposes of determining interest to periods after the date of 
the enactment of this Act.

SEC. 11. FAIRNESS WHEN COLLECTING A TAX DUE TO MATHEMATICAL AND 
              CLERICAL ERRORS.

    (a) In General.--Section 6404(d) of the Internal Revenue Code of 
1986 (relating to abatements) is amended to read as follows:
    ``(d) Abatement of Interest, Penalty, Additional Amount, and 
Addition to Tax Attributable to Certain Mathematical or Clerical 
Errors.--In the case of an assessment of additional tax attributable to 
a mathematical or clerical error (as defined in section 6213(g)(2)), 
the Secretary shall abate any interest, penalty, additional amount, and 
addition to tax with respect to such assessment if, within 60 days 
after notice of such assessment is sent under section 6213(b)(1) by 
certified mail or registered mail, the taxpayer pays, or files a 
request for an abatement of, such assessment.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to notices filed after the date of the enactment of this Act.

SOLUTION:
Internal Revenue Service Accountability Act - Amends the Internal Revenue Code to impose a fine or imprisonment upon any U.S. officer or employee who willfully and maliciously disregards any revenue law or related regulation relating to any proceeding against a taxpayer. 
Allows, if litigation costs are awarded, a portion of the costs to be assessed against any current or former Internal Revenue Service officer or employee (prohibiting Government reimbursement) if the proceeding resulted from any arbitrary, capricious, or malicious act of the officer or employee.  Allows Government defense of the officer or employee, but makes the officer or employee liable for defense costs if the employee is found liable for litigation costs.  Imposes similar liabilities regarding civil damages for a failure to release a lien or for certain unauthorized collection actions. 
Amends provisions allowing civil damages for disclosure of returns and return information to allow the damages for access as well as disclosure and apply the provisions to former as well as current officers and employees. Provides for dismissal from office or discharge from employment, a fine or imprisonment, and costs of prosecution for unauthorized access. Prohibits unauthorized access and, on discovery of unauthorized access, requires immediate taxpayer notification. 
Requires reasonable justification (not random selection) for examining a return.  Prohibits, except on court approval, a second examination of a return or extending an examination back beyond three taxable years. 
Extends from 21 to 90 calendar days after notice and demand the deadline to pay a tax required to be shown on certain returns but not shown. 
Allows a district court to rule on a decision by the Secretary of the Treasury to not acquiesce regarding conclusions of law in identical, similar, or previously-decided cases. 
Requires court consent for a levy to collect a tax. 
Prohibits interest on assessable penalties, additional amounts, or additions to tax. 
Sets the interest rate for overpayments and underpayments (the same rate for both). 
Modifies requirements regarding abatement of interest, penalties, additional amounts, or additions to tax attributable to a mathematical or clerical error.