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

This Act may be cited as the ''Fairness in IRS Debt Payment Act of
1999''.

SEC. 2. INTEREST ON TAX PORTION OF UNDERPAYMENT TO BE COMPOUNDED
ANNUALLY.

(a) In General.--Section 6622 of the Internal Revenue Code of 1986
(relating to interest compounded daily) is amended by adding at the end
the following new subsection:
''(c) Interest on Tax Portion of Underpayment To Be Compounded
Annually.--
''(1) In general.--In the case of interest or other amount
referred to in subsection (a) which is required to be paid by
the taxpayer, such interest and such amount shall be compounded
annually. The preceding sentence shall only apply to the extent
that the amount on which such interest and amount are imposed
is tax.
''(2) Interest and penalties not treated as tax.--
Notwithstanding sections 6601(e) and 6665, interest and
additions to the tax, additional amounts, and penalties
provided by chapter 68 shall not be treated as tax for purposes
of paragraph (1).
''(3) Allocation of payments.--For purposes of paragraph
(1), payments on any underpayment shall be allocated first to
amounts which are not treated as tax under paragraph (2) and
then to amounts of tax.''
(b) Effective Date.--The amendment made by subsection (a) shall
apply to interest for periods after December 31, 1999.

SEC. 3. ALLOCATION OF PAYMENTS TO UNDERPAYMENTS.

(a) In General.--Chapter 77 of the Internal Revenue Code of 1986 is
amended by adding at the end the following new section:

''SEC. 7527. ALLOCATION OF PAYMENTS TO UNDERPAYMENTS.

''In the case of a taxpayer having underpayments for more than 1
taxable period, payments by the taxpayer against those underpayments
shall be allocated by the Secretary of the Treasury equally among such
underpayments or in such other manner as may be directed by the
taxpayer.''
(b) Clerical Amendment.--The table of sections for chapter 77 of
such Code is amended by adding at the end the following new item:

''Sec. 7527. Allocation of payments to
underpayments.''
(c) Effective Date.--The amendments made by this section shall
apply to payments made after December 31, 1999.

SEC. 4. PROHIBITION ON MODIFICATION OF INSTALLMENT AGREEMENTS.

(a) In General.--Section 6159 of the Internal Revenue Code of 1986
(relating to agreements for payment of tax liability in installments)
is amended by redesignating subsections (d) and (e) as subsection (e)
and (f), respectively, and by inserting after subsection (c) the
following new subsection:
''(d) Prohibition of Certain Modifications of Installment
Agreements.--If the Secretary enters into an installment agreement with
a taxpayer under this section (other than under subsection (c))--
''(1) such agreement shall serve as a closing agreement
with respect to the amount of the liability specified in the
installment agreement for the periods to which such liability
relates, and
''(2) except as provided in subsection (b)(2), such
installment agreement may not be altered, modified, or
terminated other than by reason of a failure to make a timely
payment of any installment under such agreement.''
(b) Conforming Amendments.--
(1) Subsection (b) of section 6159 of such Code is amended
by striking paragraphs (3) and (4) and by redesignating
paragraph (5) as paragraph (3).
(2) Paragraph (3) of section 6159(b) of such Code (as
redesignating by paragraph (1)) is amended by striking '', (3),
or (4)''.
(c) Effective Date.--The amendments made by this section shall
apply to agreements entered into after December 31, 1999.

SEC. 5. LIMITATION ON AGGREGATE INTEREST AND PENALTIES.

(a) In General.--Section 6404 of the Internal Revenue Code of 1986
(relating to abatements) is amended by adding at the end the following
new subsection:
''(j) Abatement of Excessive Interest and Penalties.--
''(1) In general.--The Secretary shall abate the excessive
portion of interest and penalties.
''(2) Excessive portion.--The excessive portion of interest
and penalties is the amount by which the aggregate interest,
penalties, and additions to the tax with respect to any tax
exceeds the amount of such tax.''
(b) Effective Date.--The amendment made by subsection (a) shall
take effect on the date of the enactment of this Act.

SEC. 6. GUIDELINES AND CRITERIA FOR PENALTY ABATEMENT; REQUIRED
EXPLANATION OF REFUSAL TO ABATE PENALTIES.

(a) In General.--Section 6404 of the Internal Revenue Code of 1986
(relating to abatements) is amended by adding at the end the following
new subsection:
''(k) Guidelines and Criteria for Penalty Abatement; Required
Explanation of Refusal To Abate Penalties.--
''(1) Guidelines and criteria.--The Secretary shall
prescribe guidelines and criteria which will be used by the
Secretary in determining whether to abate any penalty or
addition to the tax.
''(2) Explanations.--If--
''(A) a taxpayer requests (in such form and manner
as the Secretary prescribes) that the Secretary abate
any portion of a penalty or an addition to the tax, and
''(B) the Secretary does not grant such request in
full,
the Secretary shall provide a written explanation to the
taxpayer of the reason for not granting such request.''
(b) Effective Date.--The amendment made by subsection (a) shall
take effect on the date of the enactment of this Act.
A:
Fairness in IRS Debt Payment Act of 1999 - Amends the Internal Revenue Code to compute interest on the tax portion of underpayments annually (currently daily).
Allocates payments for taxable period underpayments equally among such periods or as directed by the taxpayer.
Prohibits the Secretary of the Treasury from modifying certain voluntary installment agreements other than for reasons of nonpayment.
Requires abatement of aggregate tax interest and penalties in excess of the amount of such tax.
Requires the Secretary to: (1) prescribe penalty abatement guidelines; and (2) provide a requesting taxpayer with a written explanation for nonabatement of a penalty.