HR 3151 — Taxpayer First Act

Time period.>> Access to case files.--Section 7803(e)(7) of the Internal Revenue Code of 1986, as added by subsection (a), shall apply to conferences occurring after the date which is 1 year after the date of the enactment of this Act.

COMPREHENSIVE<<NOTE: CUSTOMER SERVICE STRATEGY.

26 USC 7804 note.

Deadline.>> COMPREHENSIVE CUSTOMER SERVICE STRATEGY.

Such strategy shall include-- (1) a<<NOTE: plan to provide assistance to taxpayers that is secure, designed to meet reasonable taxpayer expectations, and adopts appropriate best practices of customer service provided in the private sector, including online services, telephone call back services, and training of employees providing customer services;

(2)Plan.>> a thoroughplan assessmentto ofprovide theassistance servicesto taxpayers that theis Internalsecure, Revenuedesigned Serviceto canmeet co-locatereasonable withtaxpayer otherexpectations, Federaland servicesadopts orappropriate offerbest aspractices self-serviceof options;customer service provided in the [[Page 133 STAT.

(3)986]] proposalsprivate tosector, improveincluding Internalonline Revenueservices, Servicetelephone customercall serviceback inservices, the short term (the current and followingtraining fiscalof year),employees mediumproviding termcustomer (approximatelyservices; 3 to 5 fiscal years), and long term (approximately 10 fiscal years);

(4)(2) a<<NOTE: plan to update guidance and training materials for customer service employees of the Internal Revenue Service, including the Internal Revenue Manual, to reflect such strategy;

Assessment.>> a thorough assessment of the services that the Internal Revenue Service can co-locate with other Federal services or offer as self-service options;

(3) <<NOTE:

Proposals.

Time periods.>> proposals to improve Internal Revenue Service customer service in the short term (the current and following fiscal year), medium term (approximately 3 to 5 fiscal years), and long term (approximately 10 fiscal years);

(4) <<NOTE:

Plan.>> a plan to update guidance and training materials for customer service employees of the Internal Revenue Service, including the Internal Revenue Manual, to reflect such strategy;

(b) Updated<<NOTE: Guidance and Training Materials.--Not later than 2 years after the date of the enactment of this Act, the Secretary of the Treasury (or the Secretary's delegate) shall make available the updated guidance and training materials described in subsection (a)(4) (including the Internal Revenue Manual).

Deadline.>> Updated Guidance and Training Materials.-- Not later than 2 years after the date of the enactment of this Act, the Secretary of the Treasury (or the Secretary's delegate) shall make available the updated guidance and training materials described in subsection (a)(4) (including the Internal Revenue Manual).

(a) In<<NOTE: General.--Section 7122(c) is amended by adding at the end the following new paragraph:

26 USC 7122.>> In General.--Section 7122(c) is amended by adding at the end the following new paragraph:

(b) Effective<<NOTE: Date.--The amendment made by this section shall apply to offers-in-compromise submitted after the date of the enactment of this Act.

26 USC 122 note.>> Effective Date.--The amendment made by this section shall apply to offers-in-compromise submitted after the date of the enactment of this Act.

``(B) Internal revenue service seizure requirements with respect to structuring transactions.-- ``(i) Property derived from an illegal source.--Property may only be seized by the Internal Revenue Service pursuant to subparagraph (A) by reason of a[[Page claimed133 violationSTAT. of section 5324 if the property to be seized was derived from an illegal source or the funds were structured for the purpose of concealing the violation of a criminal law or regulation other than section 5324.

``(ii)987]] Notice.--Nota laterclaimed thanviolation 30of dayssection after5324 propertyif isthe seizedproperty byto thebe Internalseized Revenuewas Servicederived pursuantfrom toan subparagraphillegal (A),source or the Internalfunds Revenuewere Servicestructured shall--for ``(I)the makepurpose aof goodconcealing faiththe effortviolation toof finda allcriminal personslaw withor anregulation ownershipother interestthan insection such5324. property;

``(ii) <<NOTE:

Deadline.>> Notice.--Not later than 30 days after property is seized by the Internal Revenue Service pursuant to subparagraph (A), the Internal Revenue Service shall-- ``(I) make a good faith effort to find all persons with an ownership interest in such property;

``(iv) Post-seizure<<NOTE: hearing.--If a person with an ownership interest in property seized pursuant to subparagraph (A) by the Internal Revenue Service requests a hearing by a court of competent jurisdiction within 30 days after the date on which notice is provided under subclause (ii), such property shall be returned unless the court holds an adversarial hearing and finds within 30 days of such request (or such longer period as the court may provide, but only on request of an interested party) that there is probable cause to believe that there is a violation of section 5324 involving such property and probable cause to believe that the property to be seized was derived from an illegal source or the funds were structured for the purpose of concealing the violation of a criminal law or regulation other than section 5324.''.

Time period.>> Post-seizure hearing.--If a person with an ownership interest in property seized pursuant to subparagraph (A) by the Internal Revenue Service requests a hearing by a court of competent jurisdiction within 30 days after the date on which notice is provided under subclause (ii), such property shall be returned unless the court holds an adversarial hearing and finds within 30 days of such request (or such longer period as the court may provide, but only on request of an interested party) that there is probable cause to believe that there is a violation of section 5324 involving such property and probable cause to believe that the property to be seized was derived from an illegal source or the funds were structured for the purpose of concealing the violation of a criminal law or regulation other than section 5324.''.

INTEREST<<NOTE: RECEIVED IN ACTION TO RECOVER PROPERTY SEIZED BY THE INTERNAL REVENUE SERVICE BASED ON STRUCTURING TRANSACTION.

26 USC 139H.>> INTEREST RECEIVED IN ACTION TO RECOVER PROPERTY SEIZED BY THE INTERNAL REVENUE SERVICE BASED ON STRUCTURING TRANSACTION.

(b)[[Page Clerical133 Amendment.--TheSTAT. table of sections for part III of subchapter B of chapter 1 is amended by inserting before the item relating to section 140 the following new item:

988]] (b) Clerical Amendment.--The table of sections for part III of subchapter B of chapter 1 <<NOTE:

26 USC 101 prec.>> is amended by inserting before the item relating to section 140 the following new item:

(c) Effective<<NOTE: Date.--The amendments made by this section shall apply to interest received on or after the date of the enactment of this Act.

26 USC 139H note.>> Effective Date.--The amendments made by this section shall apply to interest received on or after the date of the enactment of this Act.

(a) In<<NOTE: General.--Section 6015 is amended-- (1) in subsection (e), by adding at the end the following new paragraph:

26 USC 6015.>> In General.--Section 6015 is amended-- (1) in subsection (e), by adding at the end the following new paragraph:

(b) Effective<<NOTE: Date.--The amendments made by this section shall apply to petitions or requests filed or pending on or after the date of the enactment of this Act.

26 USC 6015 note.>> Effective Date.--The amendments made by this section shall apply to petitions or requests filed or pending on or after the date of the enactment of this Act.

(b)[[Page Effective133 Date.--TheSTAT. amendments made by this section shall apply to summonses served after the date that is 45 days after the date of the enactment of this Act.

989]] (b) <<NOTE:

Applicability.

Time period.

26 USC 7609.>> Effective Date.--The amendments made by this section shall apply to summonses served after the date that is 45 days after the date of the enactment of this Act.

(a) Certain Tax Receivables Not Eligible for Collection Under Tax Collection Contracts.--Section 6306(d)(3) is<<NOTE: amended by striking ``or'' at the end of subparagraph (C) and by inserting after subparagraph (D) the following new subparagraphs:

26 USC 6306.>> is amended by striking ``or'' at the end of subparagraph (C) and by inserting after subparagraph (D) the following new subparagraphs:

(b) Determination of Inactive Tax Receivables Eligible for Collection Under Tax Collection Contracts.--Section 6306(c)(2)(A)(ii) is amended by striking ``more than \1/3\ of the period of the applicable statute of limitation has lapsed'' and inserting ``more than 2 years has passed since assessment''.

(e) Effective<<NOTE: Dates.-- (1) In general.--Except as otherwise provided in this subsection, the amendments made by this section shall apply to tax receivables identified by the Secretary (or the Secretary's delegate) after December 31, 2020.

(2)Applicability. Maximum length of installment agreements.--The amendment made by subsection (c) shall apply to contracts entered into after the date of the enactment of this Act.

26 USC 6306 note.>> Effective Dates.-- (1) In general.--Except as otherwise provided in this subsection, the amendments made by this section shall apply to tax receivables identified by the Secretary (or the Secretary's delegate) after December 31, 2020.

[[Page 133 STAT.

990]] (2) Maximum length of installment agreements.--The amendment made by subsection (c) shall apply to contracts entered into after the date of the enactment of this Act.

(a) In<<NOTE: General.--Section 7602(c)(1) is amended to read as follows:

``(1)26 GeneralUSC notice.--An7602.>> officerIn orGeneral.--Section employee7602(c)(1) of the Internal Revenue Service may not contact any person other than the taxpayer with respect to the determination or collection of the tax liability of such taxpayer unless such contact occurs during a period (not greater than 1 year) which is specifiedamended in a notice which-- ``(A) informs the taxpayer that contacts with persons other than the taxpayer are intended to beread made during such period, and ``(B) except as otherwisefollows: provided by the Secretary, is provided to the taxpayer not later than days before the beginning of such period.

``(1) <<NOTE:

Time period.>> General notice.--An officer or employee of the Internal Revenue Service may not contact any person other than the taxpayer with respect to the determination or collection of the tax liability of such taxpayer unless such contact occurs during a period (not greater than 1 year) which is specified in a notice which-- ``(A) informs the taxpayer that contacts with persons other than the taxpayer are intended to be made during such period, and ``(B) <<NOTE:

Deadline.>> except as otherwise provided by the Secretary, is provided to the taxpayer not later than 45 days before the beginning of such period.

(b) Effective<<NOTE: Date.--The amendment made by this section shall apply to notices provided, and contacts of persons made, after the date which is 45 days after the date of the enactment of this Act.

Applicability.

Time period.

26 USC 7602 note.>> Effective Date.--The amendment made by this section shall apply to notices provided, and contacts of persons made, after the date which is days after the date of the enactment of this Act.

(c)[[Page Establishment133 ThatSTAT. Reasonable Requests for Information Were Made.--Subsection (j) of section 6503 is amended by adding at the end the following new paragraph:

991]] (c) Establishment That Reasonable Requests for Information Were Made.--Subsection (j) of section 6503 <<NOTE:

26 USC 6503.>> is amended by adding at the end the following new paragraph:

(d) Effective<<NOTE: Date.--The amendments made by this section shall apply to summonses issued after the date which is 45 days after the date of the enactment of this Act.

Applicability.

Time period.

26 USC 6503 note.>> Effective Date.--The amendments made by this section shall apply to summonses issued after the date which is 45 days after the date of the enactment of this Act.

(b) Effective<<NOTE: Date.--The amendment made by this section-- (1) shall take effect on the date of the enactment of this Act;

and26 (2)USC shall7602 notnote.>> failEffective toDate.--The applyamendment tomade aby contractthis insection-- effect(1) undershall sectiontake 6103(n) of the Internal Revenue Code of 1986 merely because such contract was in effect beforeon the date of the enactment of this Act.Act;

and (2) <<NOTE:

Applicability.>> shall not fail to apply to a contract in effect under section 6103(n) of the Internal Revenue Code of 1986 merely because such contract was in effect before the date of the enactment of this Act.

``(5) Taxpayer<<NOTE: advocate directives.--In the case of any Taxpayer Advocate Directive issued by the National Taxpayer Advocate pursuant to a delegation of authority from the Commissioner of Internal Revenue-- ``(A) the Commissioner or a Deputy Commissioner shall modify, rescind, or ensure compliance with such directive not later than 90 days after the issuance of such directive, and ``(B) in the case of any directive which is modified or rescinded by a Deputy Commissioner, the National Taxpayer Advocate may (not later than 90 days after such modification or rescission) appeal to the Commissioner, and the Commissioner shall (not later than 90 days after such appeal is made) ensure compliance with such directive as issued by the National Taxpayer Advocate or provide the National Taxpayer Advocate with the reasons for any modification or rescission made or upheld by the Commissioner pursuant to such appeal.''.

(2)Deadlines.>> ReportTaxpayer advocate directives.-- In the case of any Taxpayer Advocate Directive issued by the National Taxpayer Advocate pursuant to certaina committeesdelegation of congressauthority regardingfrom directives.--Sectionthe 7803(c)(2)(B)(ii)Commissioner isof amendedInternal byRevenue-- redesignating``(A) subclausesthe (VIII)Commissioner throughor (XI)a asDeputy subclausesCommissioner (IX)shall throughmodify, (XII),rescind, respectively,or ensure compliance with such directive not later than 90 days after the issuance of such directive, and ``(B) in the case of any directive which is modified or rescinded by insertinga Deputy Commissioner, the National Taxpayer Advocate may (not later than 90 days after subclausesuch (VII)modification or rescission) appeal to the followingCommissioner, newand subclause:the Commissioner shall (not later than 90 days after such appeal is made) ensure compliance with such directive [[Page 133 STAT.

992]] as issued by the National Taxpayer Advocate or provide the National Taxpayer Advocate with the reasons for any modification or rescission made or upheld by the Commissioner pursuant to such appeal.''.

(2) Report to certain committees of congress regarding directives.--Section 7803(c)(2)(B)(ii) <<NOTE:

26 USC 7803.>> is amended by redesignating subclauses (VIII) through (XI) as subclauses (IX) through (XII), respectively, and by inserting after subclause (VII) the following new subclause:

``The preceding sentence shall not apply with respect[[Page to133 statisticalSTAT. information provided to the Secretary for review, or received from the Secretary, under section 6108(d).''.

(c)993]] Salaryrespect ofto Nationalstatistical Taxpayerinformation Advocate.--Sectionprovided 7803(c)(1)(B)(i)to is amended by striking ``, or, if the Secretary offor thereview, Treasuryor soreceived determines,from atthe aSecretary, rate fixed under section 95036108(d).''. of such title''.

(d)(c) EffectiveSalary Date.--of (1)National InTaxpayer general.--ExceptAdvocate.--Section as7803(c)(1)(B)(i) otherwiseis providedamended in<<NOTE: this subsection, the amendments made by this section shall take effect on the date of the enactment of this Act.

(2)26 SalaryUSC of7803.>> nationalby taxpayerstriking advocate.--The``, amendmentor, madeif bythe subsectionSecretary (c)of shallthe applyTreasury toso compensationdetermines, paidat toa individualsrate appointedfixed asunder thesection National9503 Taxpayerof Advocatesuch aftertitle''. March 31, 2019.

(d) <<NOTE:

26 USC 6108 note.>> Effective Date.-- (1) In general.--Except as otherwise provided in this subsection, the amendments made by this section shall take effect on the date of the enactment of this Act.

(2) <<NOTE:

Applicability.>> Salary of national taxpayer advocate.--The amendment made by subsection (c) shall apply to compensation paid to individuals appointed as the National Taxpayer Advocate after March 31, 2019.

1302.<<NOTE:

26 USC 7801 note.>> 1302.

(a) In<<NOTE: General.--Not later than September 30, 2020, the Secretary of the Treasury (or the Secretary's delegate) shall submit to Congress a comprehensive written plan to redesign the organization of the Internal Revenue Service.

Deadline.

Plan.>> In General.--Not later than September 30, 2020, the Secretary of the Treasury (or the Secretary's delegate) shall submit to Congress a comprehensive written plan to redesign the organization of the Internal Revenue Service.

(b) Repeal of Restriction on Organizational Structure of Internal Revenue Service.--Paragraph (3) of<<NOTE: section 1001(a) of the Internal Revenue Service Restructuring and Reform Act of 1998 shall cease to apply beginning 1 year after the date on which the plan described in subsection (a) is submitted to Congress.

Termination date.>> of section 1001(a) of the Internal Revenue Service Restructuring and Reform Act of shall cease to apply beginning 1 year after the date on which the plan described in subsection (a) is submitted to Congress.

7526A.<<NOTE:

26 USC 7526A.>> 7526A.

``(a) Establishment of Volunteer Income Tax Assistance Matching Grant Program.--The Secretary shall establish a Community Volunteer Income Tax Assistance Matching Grant Program under which the Secretary may, subject to the availability of appropriated funds, make grants to provide matching funds for the development, expansion, or continuation of qualified return preparation[[Page programs133 assistingSTAT. applicable taxpayers and members of underserved populations.

994]] preparation programs assisting applicable taxpayers and members of underserved populations.

``(2) Requirement of matching funds.--A qualified return preparation program must provide matching funds on a dollar-dollar-for- for-dollardollar basis for all grants provided under this section.

``(d) Program Adherence.-- ``(1) In<<NOTE: general.--The Secretary shall establish procedures for, and shall conduct not less frequently than once every 5 calendar years during which a qualified return preparation program is operating under a grant under this section, periodic site visits-- ``(A) to ensure the program is carrying out the purposes of this section, and ``(B) to determine whether the program meets such program adherence standards as the Secretary shall by regulation or other guidance prescribe.

Procedures.

Time period.>> In general.--The Secretary shall establish procedures for, and shall conduct not less frequently than once every [[Page 133 STAT.

995]] calendar years during which a qualified return preparation program is operating under a grant under this section, periodic site visits-- ``(A) to ensure the program is carrying out the purposes of this section, and ``(B) <<NOTE:

Determination.>> to determine whether the program meets such program adherence standards as the Secretary shall by regulation or other guidance prescribe.

``(B) Eligible organization.--The term `eligible organization' means-- ``(i) an institution of higher education which is described in section 102 (other than subsection (a)(1)(C) thereof) of the Higher Education Act of 1965 (20 U.S.C.

1002), as in effect on the date of the enactment of this section, and which has not been disqualified from participating in a program under title IV of such Act, ``(ii) an organization described in section 501(c) and exempt from tax under section 501(a), ``(iii) a local government agency, including-- ``(I) a county or municipal government agency, and ``(II)[[Page an133 IndianSTAT. tribe, as defined in section 4(13) of the Native American Housing Assistance and Self- Determination Act of 1996 (25 U.S.C.

996]] ``(II) an Indian tribe, as defined in section 4(13) of the Native American Housing Assistance and Self- Determination Act of 1996 (25 U.S.C.

(b)[[Page Clerical133 Amendment.--TheSTAT. table of sections for chapter 77 is amended by inserting after the item relating to section 7526 the following new item:

997]] (b) Clerical Amendment.--The table of sections for chapter 77 is <<NOTE:

26 USC 7501 prec.>> amended by inserting after the item relating to section 7526 the following new item:

(b) Effective<<NOTE: Date.--The amendment made by this section shall take effect on the date of the enactment of this Act.

26 USC 7526 note.>> Effective Date.--The amendment made by this section shall take effect on the date of the enactment of this Act.

NOTICE<<NOTE: FROM IRS REGARDING CLOSURE OF TAXPAYER ASSISTANCE CENTERS.

Not26 laterUSC than7801 90note.>> daysNOTICE beforeFROM theIRS dateREGARDING thatCLOSURE aOF proposedTAXPAYER closureASSISTANCE ofCENTERS. a Taxpayer Assistance Center would take effect, the Secretary of the Treasury (or the Secretary's delegate) shall-- (1) make publicly available (including by non-electronic means) a notice which-- (A) identifies the Taxpayer Assistance Center proposed for closure and the date of such proposed closure;

Not <<NOTE:

Deadline.>> later than 90 days before the date that a proposed closure of a Taxpayer Assistance Center would take effect, the Secretary of the Treasury (or the Secretary's delegate) shall-- (1) <<NOTE:

Public information.>> make publicly available (including by non-electronic means) a notice which-- (A) identifies the Taxpayer Assistance Center proposed for closure and the date of such proposed closure;

and (2) submit<<NOTE: to Congress a written report that includes-- (A) the information included in the notice described in paragraph (1);

Reports.>> submit to Congress a written report that includes-- (A) the information included in the notice described in paragraph (1);

(b) Effective<<NOTE: Date.--The amendment made by this section shall apply to property seized after the date of the enactment of this Act.

26 USC 6336 note.>> Effective Date.--The amendment made by this section shall apply to property seized after the date of the enactment of this Act.

``(13) Disclosure to whistleblowers.-- ``(A) In general.--The Secretary may disclose, to any individual providing information relating to any purpose described[[Page in133 paragraphSTAT. (1) or (2) of section 7623(a), return information related to the investigation of any taxpayer with respect to whom the individual has provided such information, but only to the extent that such disclosure is necessary in obtaining information, which is not otherwise reasonably available, with respect to the correct determination of tax liability for tax, or the amount to be collected with respect to the enforcement of any other provision of this title.

``(B)998]] Updatesdescribed onin whistleblowerparagraph investigations.--The(1) Secretaryor shall(2) discloseof section 7623(a), return information related to anthe investigation of any taxpayer with respect to whom the individual providinghas informationprovided relatingsuch information, but only to anythe purposeextent describedthat such disclosure is necessary in paragraphobtaining (1)information, orwhich (2)is not otherwise reasonably available, with respect to the correct determination of sectiontax 7623(a)liability for tax, or the following:amount to be collected with respect to the enforcement of any other provision of this title.

``(B) <<NOTE:

Deadlines.>> Updates on whistleblower investigations.--The Secretary shall disclose to an individual providing information relating to any purpose described in paragraph (1) or (2) of section 7623(a) the following:

(2) Conforming amendments.-- (A) Confidentiality of information.--Section 6103(a)(3) is amended by<<NOTE: striking ``subsection (k)(10)'' and inserting ``paragraph (10) or (13) of subsection (k)''.

26 USC 6103.>> by striking ``subsection (k)(10)'' and inserting ``paragraph (10) or (13) of subsection (k)''.

``(d) Civil Action To Protect Against Retaliation Cases.-- ``(1) Anti-retaliation whistleblower protection for employees.--No employer, or any officer, employee, contractor, subcontractor, or agent of such employer, may discharge, demote,[[Page suspend,133 threaten,STAT. harass, or in any other manner discriminate against an employee in the terms and conditions of employment (including through an act in the ordinary course of such employee's duties) in reprisal for any lawful act done by the employee-- ``(A) to provide information, cause information to be provided, or otherwise assist in an investigation regarding underpayment of tax or any conduct which the employee reasonably believes constitutes a violation of the internal revenue laws or any provision of Federal law relating to tax fraud, when the information or assistance is provided to the Internal Revenue Service, the Secretary of the Treasury, the Treasury Inspector General for Tax Administration, the Comptroller General of the United States, the Department of Justice, the United States Congress, a person with supervisory authority over the employee, or any other person working for the employer who has the authority to investigate, discover, or terminate misconduct, or ``(B) to testify, participate in, or otherwise assist in any administrative or judicial action taken by the Internal Revenue Service relating to an alleged underpayment of tax or any violation of the internal revenue laws or any provision of Federal law relating to tax fraud.

``(2)999]] Enforcementdemote, action.--suspend, ``(A)threaten, Inharass, general.--Aor personin whoany allegesother dischargemanner ordiscriminate otheragainst reprisalan byemployee anyin personthe interms violationand conditions of paragraphemployment (1)(including maythrough seekan reliefact underin paragraphthe (3)ordinary by--course ``(i)of filingsuch aemployee's complaintduties) within reprisal for any lawful act done by the Secretaryemployee-- of``(A) Labor,to provide information, cause information to be provided, or ``(ii)otherwise ifassist thein Secretaryan investigation regarding underpayment of Labortax hasor notany issuedconduct awhich finalthe decisionemployee withinreasonably 180believes daysconstitutes a violation of the filinginternal revenue laws or any provision of theFederal complaintlaw andrelating thereto istax nofraud, showingwhen thatthe suchinformation delayor assistance is dueprovided to the badInternal faithRevenue ofService, the claimant,Secretary bringingof anthe actionTreasury, atthe lawTreasury orInspector equityGeneral for deTax novoAdministration, reviewthe inComptroller General of the appropriateUnited districtStates, courtthe Department of Justice, the United States,States whichCongress, shalla haveperson jurisdictionwith supervisory authority over suchthe anemployee, or any other person working for the employer who has the authority to investigate, discover, or terminate misconduct, or ``(B) to testify, participate in, or otherwise assist in any administrative or judicial action withouttaken regardby the Internal Revenue Service relating to an alleged underpayment of tax or any violation of the amountinternal inrevenue controversy.laws or any provision of Federal law relating to tax fraud.

``(2) Enforcement action.-- ``(A) In general.--A person who alleges discharge or other reprisal by any person in violation of paragraph (1) may seek relief under paragraph (3) by-- ``(i) filing a complaint with the Secretary of Labor, or ``(ii) <<NOTE:

Time period.>> if the Secretary of Labor has not issued a final decision within 180 days of the filing of the complaint and there is no showing that such delay is due to the bad faith of the claimant, bringing an action at law or equity for de novo review in the appropriate district court of the United States, which shall have jurisdiction over such an action without regard to the amount in controversy.

``(iii) Burdens of proof.--An action brought under subparagraph (A)(ii) shall be governed by the legal burdens of proof set forth in section 42121(b) of title 49, United States Code, except that in applying such section-- ``(I) `behavior described in paragraph (1)' shall be substituted for `behavior described in paragraphs (1) through (4) of subsection (a)' each place it appears in paragraph (2)(B) thereof, and ``(II)[[Page `a133 violationSTAT. of paragraph (1)' shall be substituted for `a violation of subsection (a)' each place it appears.

``(iv)1000]] Statute``(II) of`a limitations.--Aviolation complaintof underparagraph subparagraph(1)' (A)(i) shall be filedsubstituted notfor later`a thanviolation 180of dayssubsection after(a)' theeach dateplace onit whichappears. the violation occurs.

``(iv) <<NOTE:

Deadline.>> Statute of limitations.--A complaint under subparagraph (A)(i) shall be filed not later than 180 days after the date on which the violation occurs.

(c) Effective Date.-- (1) In<<NOTE: general.--The amendments made by subsection (a) shall apply to disclosures made after the date of the enactment of this Act.

(2)26 CivilUSC protection.--The6103 amendmentnote.>> In general.--The amendments made by subsection (b)(a) shall takeapply effectto ondisclosures made after the date of the enactment of this Act.

(2) <<NOTE:

26 USC 7623 note.>> Civil protection.--The amendment made by subsection (b) shall take effect on the date of the enactment of this Act.

CUSTOMER<<NOTE: SERVICE INFORMATION.

26 USC 7801 note.>> CUSTOMER SERVICE INFORMATION.

SEC.[[Page 133 STAT.

1001]] SEC.

Section 6402 is<<NOTE: amended by adding at the end the following new subsection:

``(n)26 MisdirectedUSC Direct6402.>> Deposit Refund.--Not later than the date which is 6amended monthsby afteradding theat date of the enactmentend of the Taxpayerfollowing Firstnew Act,subsection: the Secretary shall prescribe regulations to establish procedures to allow for-- ``(1) taxpayers to report instances in which a refund made by the Secretary by electronic funds transfer was not transferred to the account of the taxpayer;

``(2)``(n) coordination<<NOTE: with financial institutions for the purpose of-- ``(A) identifying the accounts to which transfers described in paragraph (1) were made;

Deadline.

Regulations.

Procedures.>> Misdirected Direct Deposit Refund.--Not later than the date which is 6 months after the date of the enactment of the Taxpayer First Act, the Secretary shall prescribe regulations to establish procedures to allow for-- ``(1) taxpayers to report instances in which a refund made by the Secretary by electronic funds transfer was not transferred to the account of the taxpayer;

``(2) <<NOTE:

Coordination.>> coordination with financial institutions for the purpose of-- ``(A) identifying the accounts to which transfers described in paragraph (1) were made;

PUBLIC-PRIVATE<<NOTE: PARTNERSHIP TO ADDRESS IDENTITY THEFT REFUND FRAUD.

26 USC 7529 note.>> PUBLIC-PRIVATE PARTNERSHIP TO ADDRESS IDENTITY THEFT REFUND FRAUD.

(a) In<<NOTE: General.--The Secretary of the Treasury (or the Secretary's delegate) may participate in an information sharing and analysis center to centralize, standardize, and enhance data compilation and analysis to facilitate sharing actionable data and information with respect to identity theft tax refund fraud.

(b)26 DevelopmentUSC of7529 Performancenote.>> Metrics.--TheIn General.--The Secretary of the Treasury (or the Secretary's delegate) shallmay developparticipate metricsin foran measuringinformation thesharing successand ofanalysis such center into detectingcentralize, standardize, and preventingenhance data compilation and analysis to facilitate sharing actionable data and information with respect to identity theft tax refund fraud.

(b) <<NOTE:

26 USC 7529 note.>> Development of Performance Metrics.--The Secretary of the Treasury (or the Secretary's delegate) shall develop metrics for measuring the success of such center in detecting and preventing identity theft tax refund fraud.

``(14) Disclosure of return information for purposes of cybersecurity and the prevention of identity theft tax refund fraud.-- ``(A)[[Page In133 general.--UnderSTAT. such procedures and subject to such conditions as the Secretary may prescribe, the Secretary may disclose specified return information to specified ISAC participants to the extent that the Secretary determines such disclosure is in furtherance of effective Federal tax administration relating to the detection or prevention of identity theft tax refund fraud, validation of taxpayer identity, authentication of taxpayer returns, or detection or prevention of cybersecurity threats.

``(B)1002]] Specified``(A) isacIn participants.--Forgeneral.--Under purposessuch ofprocedures thisand paragraph--subject ``(i)to Insuch general.--Theconditions termas `specifiedthe ISACSecretary participant'may means--prescribe, ``(I)the anySecretary personmay designateddisclose byspecified thereturn Secretaryinformation asto havingspecified primaryISAC responsibilityparticipants forto athe functionextent performedthat withthe respectSecretary todetermines thesuch informationdisclosure sharingis andin analysisfurtherance centerof describedeffective inFederal sectiontax 2003(a)administration ofrelating to the Taxpayerdetection Firstor Act,prevention andof ``(II)identity anytheft persontax subjectrefund tofraud, thevalidation requirements of sectiontaxpayer 7216identity, andauthentication whichof istaxpayer areturns, participantor indetection suchor informationprevention sharingof andcybersecurity analysisthreats. center.

``(B) <<NOTE:

Definition.>> Specified isac participants.--For purposes of this paragraph-- ``(i) In general.--The term `specified ISAC participant' means-- ``(I) any person designated by the Secretary as having primary responsibility for a function performed with respect to the information sharing and analysis center described in section 2003(a) of the Taxpayer First Act, and ``(II) any person subject to the requirements of section 7216 and which is a participant in such information sharing and analysis center.

``(C) Specified<<NOTE: return information.--For purposes of this paragraph, the term `specified return information' means-- ``(i) in the case of a return which is in connection with a case of potential identity theft refund fraud-- ``(I) in the case of such return filed electronically, the internet protocol address, device identification, email domain name, speed of completion, method of authentication, refund method, and such other return information related to the electronic filing characteristics of such return as the Secretary may identify for purposes of this subclause, and ``(II) in the case of such return prepared by a tax return preparer, identifying information with respect to such tax return preparer, including the preparer taxpayer identification number and electronic filer identification number of such preparer, ``(ii) in the case of a return which is in connection with a case of a identity theft refund fraud which has been confirmed by the Secretary (pursuant to such procedures as the Secretary may provide), the information referred to in subclauses (I) and (II) of clause (i), the name and taxpayer identification number of the taxpayer as it appears on the return, and any bank account and routing information provided for making a refund in connection with such return, and ``(iii) in the case of any cybersecurity threat to the Internal Revenue Service, information similar to the information described in subclauses (I) and (II) of clause (i) with respect to such threat.

Definition.>> Specified return information.--For purposes of this paragraph, the term `specified return information' means-- ``(i) in the case of a return which is in connection with a case of potential identity theft refund fraud-- ``(I) in the case of such return filed electronically, the internet protocol address, device identification, email domain name, speed of completion, method of authentication, refund method, and such other return information related to the electronic filing characteristics of such return as the Secretary may identify for purposes of this subclause, and ``(II) in the case of such return prepared by a tax return preparer, identifying information with respect to such tax return preparer, including the preparer taxpayer identification number and electronic filer identification number of such preparer, ``(ii) in the case of a return which is in connection with a case of a identity theft refund fraud which has been confirmed by the Secretary (pursuant to such procedures as the Secretary may provide), the information referred to in subclauses (I) and (II) of clause (i), the name and taxpayer identification number of the taxpayer as it appears on the return, and any bank account and routing information provided for making a refund in connection with such return, and [[Page 133 STAT.

1003]] ``(iii) in the case of any cybersecurity threat to the Internal Revenue Service, information similar to the information described in subclauses (I) and (II) of clause (i) with respect to such threat.

(2) Application of civil and criminal penalties.-- (A) Section<<NOTE: 6103(a)(3), as amended by this Act, is amended by striking ``or (13)'' and inserting ``, (13), or (14)''.

26 USC 6103.>> Section 6103(a)(3), as amended by this Act, is amended by striking ``or (13)'' and inserting ``, (13), or (14)''.

``(9) Disclosure to contractors and other agents.-- Notwithstanding any other provision of this section, no return or return information shall be disclosed to any contractor or other agent of a Federal, State, or local agency unless such agency, to the satisfaction of the Secretary-- ``(A) has requirements in effect which require each such contractor or other agent which would have access to returns or return information to provide safeguards (within the meaning of paragraph (4)) to protect the confidentiality of such returns or return information, ``(B)[[Page agrees133 toSTAT. conduct an on-site review every 3 years (or a mid-point review in the case of contracts or agreements of less than 3 years in duration) of each contractor or other agent to determine compliance with such requirements, ``(C) submits the findings of the most recent review conducted under subparagraph (B) to the Secretary as part of the report required by paragraph (4)(E), and ``(D) certifies to the Secretary for the most recent annual period that such contractor or other agent is in compliance with all such requirements.

1004]] ``(B) <<NOTE:

Review.

Time period.>> agrees to conduct an on-site review every 3 years (or a mid-point review in the case of contracts or agreements of less than 3 years in duration) of each contractor or other agent to determine compliance with such requirements, ``(C) submits the findings of the most recent review conducted under subparagraph (B) to the Secretary as part of the report required by paragraph (4)(E), and ``(D) <<NOTE:

Certification.>> certifies to the Secretary for the most recent annual period that such contractor or other agent is in compliance with all such requirements.

(b) Conforming<<NOTE: Amendment.--Section 6103(p)(8)(B) is amended by inserting ``or paragraph (9)'' after ``subparagraph (A)''.

(c)26 EffectiveUSC Date.--The6103.>> amendmentsConforming madeAmendment.--Section by6103(p)(8)(B) thisis sectionamended shallby applyinserting to``or disclosuresparagraph made(9)'' after December``subparagraph 31,(A)''. 2022.

(c) <<NOTE:

26 USC 6103 note.>> Effective Date.--The amendments made by this section shall apply to disclosures made after December 31, 2022.

IDENTITY<<NOTE: PROTECTION PERSONAL IDENTIFICATION NUMBERS.

26 USC 6109 note.>> IDENTITY PROTECTION PERSONAL IDENTIFICATION NUMBERS.

(2) Nationwide<<NOTE: availability.--Not later than 5 years after the date of the enactment of this Act, the Secretary shall ensure that the program described in subsection (a) is made available to any individual residing in the United States.

Deadline.>> Nationwide availability.--Not later than 5 years after the date of the enactment of this Act, the Secretary shall ensure that the program described in subsection (a) is made available to any individual residing in the United States.

SINGLE<<NOTE: POINT OF CONTACT FOR TAX-RELATED IDENTITY THEFT VICTIMS.

(a)26 InUSC General.--The7529 Secretarynote.>> ofSINGLE thePOINT TreasuryOF (orCONTACT theFOR Secretary'sTAX-RELATED delegate)IDENTITY shallTHEFT establishVICTIMS. and implement procedures to ensure that any taxpayer whose return has been delayed or otherwise adversely affected due to tax-related identity theft has a single point of contact at the Internal Revenue Service throughout the processing of the taxpayer's case.

The(a) single<<NOTE: point of contact shall track the taxpayer's case to completion and coordinate with other Internal Revenue Service employees to resolve case issues as quickly as possible.

(b)Procedures.>> SingleIn PointGeneral.--The Secretary of Contact.--the (1)Treasury In(or general.--Forthe purposesSecretary's ofdelegate) subsectionshall (a),establish theand singleimplement pointprocedures ofto contactensure shallthat consistany oftaxpayer awhose teamreturn orhas subsetbeen ofdelayed speciallyor trainedotherwise employeesadversely who--affected (A)due haveto thetax-related abilityidentity totheft workhas acrossa functionssingle topoint resolveof contact at the issuesInternal involvedRevenue inService throughout the processing of the taxpayer's case;case.

<<NOTE:

Coordination.>> The single point of contact shall track the taxpayer's case to completion and coordinate with other Internal Revenue Service employees to resolve case issues as quickly as possible.

[[Page 133 STAT.

1005]] (b) Single Point of Contact.-- (1) In general.--For purposes of subsection (a), the single point of contact shall consist of a team or subset of specially trained employees who-- (A) have the ability to work across functions to resolve the issues involved in the taxpayer's case;

(2) Team<<NOTE: or subset.--The employees included within the team or subset described in paragraph (1) may change as required to meet the needs of the Internal Revenue Service, provided that procedures have been established to-- (A) ensure continuity of records and case history;

andProcedures.>> (B)Team notifyor subset.--The employees included within the taxpayerteam whenor appropriate.subset described in paragraph (1) may change as required to meet the needs of the Internal Revenue Service, provided that procedures have been established to-- (A) ensure continuity of records and case history;

and (B) <<NOTE:

Notification.>> notify the taxpayer when appropriate.

NOTIFICATION<<NOTE: OF SUSPECTED IDENTITY THEFT.

``(a)26 InUSC General.--If7529.>> theNOTIFICATION SecretaryOF determinesSUSPECTED thatIDENTITY thereTHEFT. has been or may have been an unauthorized use of the identity of any individual, the Secretary shall, without jeopardizing an investigation relating to tax administration-- ``(1) as soon as practicable-- ``(A) notify the individual of such determination, ``(B) provide instructions on how to file a report with law enforcement regarding the unauthorized use, ``(C) identify any steps to be taken by the individual to permit law enforcement to access personal information of the individual during the investigation, ``(D) provide information regarding actions the individual may take in order to protect the individual from harm relating to the unauthorized use, and ``(E) offer identity protection measures to the individual, such as the use of an identity protection personal identification number, and ``(2) at the time the information described in paragraph (1) is provided (or, if not available at such time, as soon as practicable thereafter), issue additional notifications to such individual (or such individual's designee) regarding-- ``(A) whether an investigation has been initiated in regards to such unauthorized use, ``(B) whether the investigation substantiated an unauthorized use of the identity of the individual, and ``(C) whether-- ``(i) any action has been taken against a person relating to such unauthorized use, or ``(ii) any referral has been made for criminal prosecution of such person and, to the extent such information is available, whether such person has been criminally charged by indictment or information.

``(a) <<NOTE:

Determination.>> In General.--If the Secretary determines that there has been or may have been an unauthorized use of the identity of any individual, the Secretary shall, without jeopardizing an investigation relating to tax administration-- ``(1) as soon as practicable-- ``(A) notify the individual of such determination, ``(B) provide instructions on how to file a report with law enforcement regarding the unauthorized use, ``(C) identify any steps to be taken by the individual to permit law enforcement to access personal information of the individual during the investigation, ``(D) provide information regarding actions the individual may take in order to protect the individual from harm relating to the unauthorized use, and ``(E) offer identity protection measures to the individual, such as the use of an identity protection personal identification number, and ``(2) at the time the information described in paragraph (1) is provided (or, if not available at such time, as soon as practicable thereafter), issue additional notifications to such individual (or such individual's designee) regarding-- ``(A) whether an investigation has been initiated in regards to such unauthorized use, ``(B) whether the investigation substantiated an unauthorized use of the identity of the individual, and ``(C) whether-- ``(i) any action has been taken against a person relating to such unauthorized use, or ``(ii) any referral has been made for criminal prosecution of such person and, to the extent such information is available, whether such person has been criminally charged by indictment or information.

``(2)[[Page Determination133 ofSTAT. employment-related identity theft.-- For purposes of this section, in making a determination as to whether there has been or may have been an unauthorized use of the identity of an individual to obtain employment, the Secretary shall review any information-- ``(A) obtained from a statement described in section 6051 or an information return relating to compensation for services rendered other than as an employee, or ``(B) provided to the Internal Revenue Service by the Social Security Administration regarding any statement described in section 6051, which indicates that the social security account number provided on such statement or information return does not correspond with the name provided on such statement or information return or the name on the tax return reporting the income which is included on such statement or information return.''.

(b)1006]] Additional``(2) Measures.--Determination (1) Examination of both paper and electronic statements and returns.--The Secretary of the Treasury (or the Secretary's delegate) shall examine the statements, information returns, and tax returns described in section 7529(b)(2) of the Internal Revenue Code of 1986 (as added by subsection (a)) for any evidence of employment-related identity theft,theft.-- regardlessFor ofpurposes whether<<NOTE: such statements or returns are submitted electronically or on paper.

Review.>> of this section, in making a determination as to whether there has been or may have been an unauthorized use of the identity of an individual to obtain employment, the Secretary shall review any information-- ``(A) obtained from a statement described in section or an information return relating to compensation for services rendered other than as an employee, or ``(B) provided to the Internal Revenue Service by the Social Security Administration regarding any statement described in section 6051, which indicates that the social security account number provided on such statement or information return does not correspond with the name provided on such statement or information return or the name on the tax return reporting the income which is included on such statement or information return.''.

(b) Additional Measures.-- (1) <<NOTE:

26 USC 7529 note.>> Examination of both paper and electronic statements and returns.--The Secretary of the Treasury (or the Secretary's delegate) shall examine the statements, information returns, and tax returns described in section 7529(b)(2) of the Internal Revenue Code of 1986 (as added by subsection (a)) for any evidence of employment-related identity theft, regardless of whether such statements or returns are submitted electronically or on paper.

(3) Underreporting<<NOTE: of income.--The Secretary of the Treasury (or the Secretary's delegate) shall establish procedures to ensure that income reported in connection with the unauthorized use of a taxpayer's identity is not taken into account in determining any penalty for underreporting of income by the victim of identity theft.

(c)Procedures. Clerical Amendment.--The table of sections for chapter 77 is amended by adding at the end the following new item:

26 USC 7529 note.>> Underreporting of income.--The Secretary of the Treasury (or the Secretary's delegate) shall establish procedures to ensure that income reported in connection with the unauthorized use of a taxpayer's identity is not taken into account in determining any penalty for underreporting of income by the victim of identity theft.

(c) Clerical Amendment.--The table of sections for chapter 77 is <<NOTE:

26 USC 7501 prec.>> amended by adding at the end the following new item:

(d) Effective<<NOTE: Date.--The amendments made by this section shall apply to determinations made after the date that is 6 months after the date of the enactment of this Act.

Applicability.

Determinations.

Time period.

26 USC note.

26 USC note.

Deadline.

Consultation.

Public information.>> Effective Date.--The amendments made by this section shall apply to determinations made after the date that is 6 months after the date of the enactment of this Act.

(a) In General.--Not later than 1 year after the date of the enactment of this Act, the Secretary of the Treasury (or the Secretary's delegate), in consultation with the National Taxpayer Advocate, shall develop and implement publicly available guidelines for management of cases involving stolen identity refund fraud in[[Page a133 mannerSTAT. that reduces the administrative burden on taxpayers who are victims of such fraud.

1007]] in a manner that reduces the administrative burden on taxpayers who are victims of such fraud.

(a) In<<NOTE: General.--Section 6713 is amended-- (1) by redesignating subsections (b) and (c) as subsections (c) and (d), respectively;

26 USC 6713.>> In General.--Section 6713 is amended-- (1) by redesignating subsections (b) and (c) as subsections (c) and (d), respectively;

``(2) Separate application of total penalty limitation.--limitation.--The The limitation on the total amount of the penalty under subsection (a) shall be applied separately with respect to disclosures or uses to which this subsection applies and to which it does not apply.''.

(c) Effective<<NOTE: Date.--The amendments made by this section shall apply to disclosures or uses on or after the date of the enactment of this Act.

Subtitle26 B--DevelopmentUSC 6713 note.>> Effective Date.--The amendments made by this section shall apply to disclosures or uses on or after the date of Informationthe Technologyenactment SEC.of this Act.

[[Page 133 STAT.

1008]] Subtitle B--Development of Information Technology SEC.

(a) Duties and Responsibilities of Internal Revenue Service Chief Information Officer.--Section 7803, as amended by section 1001, is<<NOTE: amended by adding at the end the following new subsection:

``(f)26 InternalUSC Revenue7803.>> Serviceis Chiefamended Informationby Officer.--adding ``(1)at In general.--There shall be in the Internalend Revenue Service an Internal Revenue Service Chief Information Officer (hereafter referred to in this subsection as the `IRSfollowing CIO')new whosubsection: shall be appointed by the Commissioner of Internal Revenue.

``(f) Internal Revenue Service Chief Information Officer.-- ``(1) <<NOTE:

Appointment.>> In general.--There shall be in the Internal Revenue Service an Internal Revenue Service Chief Information Officer (hereafter referred to in this subsection as the `IRS CIO') who shall be appointed by the Commissioner of Internal Revenue.

``(3) General duties and responsibilities.--The IRS CIO shall-- ``(A) be responsible for the development, implementation, and maintenance of information technology for the Internal Revenue Service, ``(B) ensure that the information technology of the Internal Revenue Service is secure and integrated, ``(C) maintain operational control of all information technology for the Internal Revenue Service, ``(D) be the principal advocate for the information technology needs of the Internal Revenue Service, and ``(E) consult<<NOTE: with the Chief Procurement Officer of the Internal Revenue Service to ensure that the information technology acquired for the Internal Revenue Service is consistent with-- ``(i) the goals and requirements specified in subparagraphs (A) through (D), and ``(ii) the strategic plan developed under paragraph (4).

Consultation.>> consult with the Chief Procurement Officer of the Internal Revenue Service to ensure that the information technology acquired for the Internal Revenue Service is consistent with-- ``(i) the goals and requirements specified in subparagraphs (A) through (D), and ``(ii) the strategic plan developed under paragraph (4).

Such plan shall-- ``(i) include performance measurements of such technology and of the implementation of such plan, ``(ii) include a plan for an integrated enterprise architecture of the information technology of the Internal Revenue Service, ``(iii) include and take into account the resources needed to accomplish such plan, ``(iv)[[Page take133 intoSTAT. account planned major acquisitions of information technology by the Internal Revenue Service, and ``(v) align with the needs and strategic plan of the Internal Revenue Service.

``(B)1009]] Plan``(iv) updates.--Thetake IRSinto CIOaccount shall,planned notmajor lessacquisitions frequentlyof thaninformation annually,technology reviewby and update the strategicInternal planRevenue underService, subparagraphand (A)``(v) (includingalign thewith plan for an integrated enterprise architecture described in subparagraph (A)(ii)) to take into account the developmentneeds of new information technology and thestrategic needsplan of the Internal Revenue Service.

``(5)``(B) Scope<<NOTE: of authority.-- ``(A) Information technology.--For purposes of this subsection, the term `information technology' has the meaning given such term by section 11101 of title 40, United States Code.

Time period.

Review.>> Plan updates.--The IRS CIO shall, not less frequently than annually, review and update the strategic plan under subparagraph (A) (including the plan for an integrated enterprise architecture described in subparagraph (A)(ii)) to take into account the development of new information technology and the needs of the Internal Revenue Service.

``(5) Scope of authority.-- ``(A) <<NOTE:

Definition.>> Information technology.--For purposes of this subsection, the term `information technology' has the meaning given such term by section 11101 of title 40, United States Code.

(b) Independent Verification and Validation of the Customer Account Data Engine 2 and Enterprise Case Management System.-- (1) In<<NOTE: general.--The Commissioner of Internal Revenue shall enter into a contract with an independent reviewer to verify and validate the implementation plans (including the performance milestones and cost estimates included in such plans) developed for the Customer Account Data Engine 2 and the Enterprise Case Management System.

Contracts.>> In general.--The Commissioner of Internal Revenue shall enter into a contract with an independent reviewer to verify and validate the implementation plans (including the performance milestones and cost estimates included in such plans) developed for the Customer Account Data Engine 2 and the Enterprise Case Management System.

(B) Deadline for completing plans.--Not later than 1 year after the date of the enactment of this Act, the Commissioner of Internal Revenue shall complete the development of plans for all phases of the Customer Account Data Engine 2.

(c)[[Page Coordination133 ofSTAT. IRS CIO and Chief Procurement Officer of the Internal Revenue Service.-- (1) In general.--The Chief Procurement Officer of the Internal Revenue Service shall-- (A) identify all significant IRS information technology acquisitions and provide written notification to the Internal Revenue Service Chief Information Officer (hereafter referred to in this subsection as the ``IRS CIO'') of each such acquisition in advance of such acquisition, and (B) regularly consult with the IRS CIO regarding acquisitions of information technology for the Internal Revenue Service, including meeting with the IRS CIO regarding such acquisitions upon request.

(2)1010]] Significant(c) irs<<NOTE: information technology acquisitions.-- For purposes of this subsection, the term ``significant IRS information technology acquisitions'' means-- (A) any acquisition of information technology for the Internal Revenue Service in excess of $1 million;

26 USC 7803 note.>> Coordination of IRS CIO and Chief Procurement Officer of the Internal Revenue Service.-- (1) In general.--The Chief Procurement Officer of the Internal Revenue Service shall-- (A) <<NOTE:

Notification.>> identify all significant IRS information technology acquisitions and provide written notification to the Internal Revenue Service Chief Information Officer (hereafter referred to in this subsection as the ``IRS CIO'') of each such acquisition in advance of such acquisition, and (B) <<NOTE:

Consultation.>> regularly consult with the IRS CIO regarding acquisitions of information technology for the Internal Revenue Service, including meeting with the IRS CIO regarding such acquisitions upon request.

(2) Significant irs information technology acquisitions.-- For purposes <<NOTE:

Definition.>> of this subsection, the term ``significant IRS information technology acquisitions'' means-- (A) any acquisition of information technology for the Internal Revenue Service in excess of $1 million;

INTERNET<<NOTE: PLATFORM FOR FORM 1099 FILINGS.

26 USC 6011 note.

Deadline.>> INTERNET PLATFORM FOR FORM 1099 FILINGS.

and (2) comply<<NOTE: with applicable security standards and guidelines.

Compliance.>> comply with applicable security standards and guidelines.

``SEC.[[Page 133 STAT.

1011]] ``SEC.

STREAMLINED<<NOTE: CRITICAL PAY AUTHORITY FOR INFORMATION TECHNOLOGY POSITIONS.

Applicability.

26 USC 7812.>> STREAMLINED CRITICAL PAY AUTHORITY FOR INFORMATION TECHNOLOGY POSITIONS.

(b) Clerical Amendment.--The table of sections for subchapter A of chapter 80 is amended<<NOTE: by adding at the end the following new item:

26 USC 7801 prec.>> amended by adding at the end the following new item:

DISCLOSURE<<NOTE: OF TAXPAYER INFORMATION FOR THIRD-PARTY INCOME VERIFICATION.

(a)26 InUSC General.--Not6103 laternote.>> thanDISCLOSURE 1OF yearTAXPAYER afterINFORMATION theFOR closeTHIRD-PARTY ofINCOME theVERIFICATION. 2- year period described in subsection (d)(1), the Secretary of the Treasury or the Secretary's delegate (hereafter referred to in this section as the ``Secretary'') shall implement a program to ensure that any qualified disclosure-- (1) is fully automated and accomplished through the internet;

(a) <<NOTE:

Deadline.>> In General.--Not later than 1 year after the close of the 2-year period described in subsection (d)(1), the Secretary of the Treasury or the Secretary's delegate (hereafter referred to in this section as the ``Secretary'') shall implement a program to ensure that any qualified disclosure-- (1) is fully automated and accomplished through the internet;

(b) Qualified Disclosure.--For purposes of<<NOTE: this section, the term ``qualified disclosure'' means a disclosure under section 6103(c) of the Internal Revenue Code of 1986 of returns or return information by the Secretary to a person seeking to verify the income or creditworthiness of a taxpayer who is a borrower in the process of a loan application.

(c)Definition.>> Applicationof this section, the term ``qualified disclosure'' means a disclosure under section 6103(c) of Securitythe Standards.--TheInternal Revenue Code of 1986 of returns or return information by the Secretary shallto ensurea thatperson seeking to verify the programincome describedor increditworthiness subsectionof (a)a compliestaxpayer withwho applicableis securitya standardsborrower andin guidelines.the process of a loan application.

(d)(c) User<<NOTE: Fee.-- (1) In general.--During the 2-year period beginning on the first day of the sixth calendar month beginning after the date of the enactment of this Act, the Secretary shall assess and collect a fee for qualified disclosures (in addition to any other fee assessed and collected for such disclosures) at such rates as the Secretary determines are sufficient to cover the costs related to implementing the program described in subsection (a), including the costs of any necessary infrastructure or technology.

Compliance.>> Application of Security Standards.--The Secretary shall ensure that the program described in subsection (a) complies with applicable security standards and guidelines.

[[Page 133 STAT.

1012]] (d) User Fee.-- (1) <<NOTE:

Time period.>> In general.--During the 2-year period beginning on the first day of the sixth calendar month beginning after the date of the enactment of this Act, the Secretary shall assess and collect a fee for qualified disclosures (in addition to any other fee assessed and collected for such disclosures) at such rates as the Secretary determines are sufficient to cover the costs related to implementing the program described in subsection (a), including the costs of any necessary infrastructure or technology.

(a) In<<NOTE: General.--Section 6103(c) is amended by adding at the end the following:

26 USC 6103.>> In General.--Section 6103(c) is amended by adding at the end the following:

(c) Effective<<NOTE: Date.--The amendments made by this section shall apply to disclosures made after the date which is 180 days after the date of the enactment of this Act.

Applicability.

Time period.

26 USC 6103 note.>> Effective Date.--The amendments made by this section shall apply to disclosures made after the date which is 180 days after the date of the enactment of this Act.

``(6) Partnerships required to file on magnetic media.-- Notwithstanding paragraph (2)(A), the Secretary shall require[[Page partnerships133 havingSTAT. more than 100 partners to file returns on magnetic media.''.

(c)1013]] Returnsrequire Filedpartnerships byhaving amore Taxthan Return100 Preparer.--Sectionpartners 6011(e)(3)to isfile amendedreturns byon addingmagnetic atmedia.''. the end the following new subparagraph:

``(D)(c) ExceptionReturns forFiled certain preparers located in areas without internet access.--The Secretary may waive the requirement of subparagraph (A) if the Secretary determines, on the basis of an application by the tax return preparer, that the preparer cannot meet such requirement by reason of being located in a geographicTax areaReturn whichPreparer.--Section does6011(e)(3) notis haveamended access<<NOTE: to internet service (other than dial-up or satellite service).''.

26 USC 6011.>> by adding at the end the following new subparagraph:

``(D) Exception for certain preparers located in areas without internet access.--The Secretary <<NOTE:

Waiver authority.

Determination.>> may waive the requirement of subparagraph (A) if the Secretary determines, on the basis of an application by the tax return preparer, that the preparer cannot meet such requirement by reason of being located in a geographic area which does not have access to internet service (other than dial-up or satellite service).''.

(e) Effective<<NOTE: Date.--The amendments made by this section shall take effect on the date of the enactment of this Act.

26 USC 6011 note.>> Effective Date.--The amendments made by this section shall take effect on the date of the enactment of this Act.

``(B) Electronic signatures for disclosure authorizations to, and other authorizations of, practitioners.--Not later than 6 months after<<NOTE: the date of the enactment of this subparagraph, the Secretary shall publish guidance to establish uniform standards and procedures for the acceptance of taxpayers' signatures appearing in electronic form with respect to any request for disclosure of a taxpayer's return or return information under section 6103(c) to a practitioner or any power of attorney granted by a taxpayer to a practitioner.

``(C)Deadline. Practitioner.--For purposes of subparagraph (B), the term `practitioner' means any individual in good standing who is regulated under section 330 of title 31, United States Code.''.

Procedures.>> after the date of the enactment of this subparagraph, the Secretary shall publish guidance to establish uniform standards and procedures for the acceptance of taxpayers' signatures appearing in electronic form with respect to any request for disclosure of a taxpayer's return or return information under section 6103(c) to a practitioner or any power of attorney granted by a taxpayer to a practitioner.

``(C) <<NOTE:

Definition.>> Practitioner.--For purposes of subparagraph (B), the term `practitioner' means any individual in good standing who is regulated under section 330 of title 31, United States Code.''.

SEC.[[Page 133 STAT.

1014]] SEC.

AUTHENTICATION<<NOTE: OF USERS OF ELECTRONIC SERVICES ACCOUNTS.

Beginning26 180USC days6011 afternote.>> theAUTHENTICATION dateOF ofUSERS theOF enactmentELECTRONIC ofSERVICES thisACCOUNTS. Act, the Secretary of the Treasury (or the Secretary's delegate) shall verify the identity of any individual opening an e-Services account with the Internal Revenue Service before such individual is able to use the e- Services tools.

Beginning 180 days <<NOTE:

Effective date.

Time period.>> after the date of the enactment of this Act, the Secretary of the Treasury (or the Secretary's delegate) shall verify the identity of any individual opening an e-Services account with the Internal Revenue Service before such individual is able to use the e-Services tools.

Not later<<NOTE: than 1 year after the date of the enactment of this Act, the Commissioner of Internal Revenue shall submit to Congress a written report providing a comprehensive training strategy for employees of the Internal Revenue Service, including-- (1) a plan to streamline current training processes, including an assessment of the utility of further consolidating internal training programs, technology, and funding;

Deadline.

Reports.

Plans.>> later than 1 year after the date of the enactment of this Act, the Commissioner of Internal Revenue shall submit to Congress a written report providing a comprehensive training strategy for employees of the Internal Revenue Service, including-- (1) <<NOTE:

Assessment.>> a plan to streamline current training processes, including an assessment of the utility of further consolidating internal training programs, technology, and funding;

(4) proposals<<NOTE: to-- (A) focus employee training on early, fair, and efficient resolution of taxpayer disputes for employees that interface with taxpayers and the direct managers of such employees;

Proposals.>> proposals to-- (A) focus employee training on early, fair, and efficient resolution of taxpayer disputes for employees that interface with taxpayers and the direct managers of such employees;

and (5) a<<NOTE: thorough assessment of the funding necessary to implement such strategy.

Assessment.>> a thorough assessment of the funding necessary to implement such strategy.

(a) In<<NOTE: General.--Section 7804 is amended by adding at the end the following new subsection:

``(d)26 ProhibitionUSC on7804.>> RehiringIn EmployeesGeneral.--Section Involuntarily7804 Separated.--is Theamended Commissionerby mayadding notat hire any individual previously employed by the Commissionerend who was removed for misconduct under this subchapter or chapter 43 or chapter 75 of title 5, United States Code, or whose employment was terminated under section 1203 of the Internalfollowing Revenuenew Servicesubsection: Restructuring and Reform Act of 1998 (26 U.S.C.

``(d) Prohibition on Rehiring Employees Involuntarily Separated.-- The Commissioner may not hire any individual previously employed by the Commissioner who was removed for misconduct under this subchapter or chapter 43 or chapter 75 of [[Page 133 STAT.

1015]] title 5, United States Code, or whose employment was terminated under section 1203 of the Internal Revenue Service Restructuring and Reform Act of 1998 (26 U.S.C.

(b) Effective<<NOTE: Date.--The amendment made by subsection (a) shall apply with respect to the hiring of employees after the date of the enactment of this Act.

26 USC 7804 note.>> Effective Date.--The amendment made by subsection (a) shall apply with respect to the hiring of employees after the date of the enactment of this Act.

NOTIFICATION<<NOTE: OF UNAUTHORIZED INSPECTION OR DISCLOSURE OF RETURNS AND RETURN INFORMATION.

(a)Determinations.>> InNOTIFICATION General.--SubsectionOF (e)UNAUTHORIZED ofINSPECTION sectionOR 7431DISCLOSURE isOF amendedRETURNS byAND addingRETURN atINFORMATION. the end the following new sentences:

(a) <<NOTE:

26 USC 7431.>> In General.--Subsection (e) of section is amended by adding at the end the following new sentences:

(b) Effective<<NOTE: Date.--The amendment made by this section shall apply to determinations proposed after the date which is 180 days after the date of the enactment of this Act.

Applicability.

Time period.

26 USC 7431 note.>> Effective Date.--The amendment made by this section shall apply to determinations proposed after the date which is 180 days after the date of the enactment of this Act.

``(h) Mandatory e-FilingE-Filing of Unrelated Business Income Tax Return.-- Any organization required to file an annual return under this section which relates to any tax imposed by section 511 shall file such return in electronic form.''.

(d) Effective<<NOTE: Date.-- (1) In general.--Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

(2)26 TransitionalUSC relief.--527 (A)note.>> SmallEffective organizations.--Date.-- (i)(1) In general.--Ingeneral.--Except theas caseprovided of any small organizations, or any other organizations for which the Secretary of the Treasury or the Secretary's delegate (hereafter referred to in this paragraph as(2), the ``Secretary'') determines the application of the amendments made by this section would cause undue burden without a delay, the Secretary may delay the application of such amendments, but such delay shall not apply to any taxable yearyears beginning on or after the date thatof is 2 years after the enactment of this Act.

(ii)(2) SmallTransitional organization.--Forrelief.-- purposes[[Page of133 clauseSTAT. (i), the term ``small organization'' means any organization-- (I) the gross receipts of which for the taxable year are less than $200,000;

1016]] (A) Small organizations.-- (i) <<NOTE:

Determination.

Time period.>> In general.--In the case of any small organizations, or any other organizations for which the Secretary of the Treasury or the Secretary's delegate (hereafter referred to in this paragraph as the ``Secretary'') determines the application of the amendments made by this section would cause undue burden without a delay, the Secretary may delay the application of such amendments, but such delay shall not apply to any taxable year beginning on or after the date that is 2 years after the enactment of this Act.

(ii) <<NOTE:

Definition.>> Small organization.--For purposes of clause (i), the term ``small organization'' means any organization-- (I) the gross receipts of which for the taxable year are less than $200,000;

(B) Organizations<<NOTE: filing form 990-t.--In the case of any organization described in section 511(a)(2) of the Internal Revenue Code of 1986 which is subject to the tax imposed by section 511(a)(1) of such Code on its unrelated business taxable income, or any organization required to file a return under section of such Code and include information under subsection (e) thereof, the Secretary may delay the application of the amendments made by this section, but such delay shall not apply to any taxable year beginning on or after the date that is 2 years after the enactment of this Act.

Time period.>> Organizations filing form 990-t.--In the case of any organization described in section 511(a)(2) of the Internal Revenue Code of which is subject to the tax imposed by section 511(a)(1) of such Code on its unrelated business taxable income, or any organization required to file a return under section 6033 of such Code and include information under subsection (e) thereof, the Secretary may delay the application of the amendments made by this section, but such delay shall not apply to any taxable year beginning on or after the date that is 2 years after the enactment of this Act.

(a) In<<NOTE: General.--Section 6033(j)(1) is amended by striking ``If an organization'' and inserting the following:

``(A)26 Notice.--IfUSC an6033.>> organizationIn describedGeneral.--Section in6033(j)(1) subsectionis (a)(1)amended orby (i)striking fails``If toan fileorganization'' the annual return or notice required under either subsection for 2 consecutive years, the Secretary shall notify the organization-- ``(i) that the Internal Revenue Service has no record of such a return or notice from such organization for 2 consecutive years, and ``(ii)inserting about the revocationfollowing: that will occur under subparagraph (B) if the organization fails to file such a return or notice by the due date for the next such return or notice required to be filed.

``(A) <<NOTE:

Time period.>> Notice.--If an organization described in subsection (a)(1) or (i) fails to file the annual return or notice required under either subsection for 2 consecutive years, the Secretary shall notify the organization-- ``(i) that the Internal Revenue Service has no record of such a return or notice from such organization for 2 consecutive years, and ``(ii) about the revocation that will occur under subparagraph (B) if the organization fails to file such a return or notice by the due date for the next such return or notice required to be filed.

(b) Effective<<NOTE: Date.--The amendment made by this section shall apply to failures to file returns or notices for 2 consecutive years if the return or notice for the second year is required to be filed after December 31, 2019.

SubtitleApplicability. C--Revenue Provision SEC.

Time period.

26 USC 6033 note.>> Effective Date.--The amendment made by this section shall apply to failures to file returns or notices for 2 consecutive years if the return or notice for the second year is required to be filed after December 31, 2019.

[[Page 133 STAT.

1017]] Subtitle C--Revenue Provision SEC.

(a) In General.--The second sentence of subsection (a) of section is<<NOTE: amended by striking ``$205'' and inserting ``$330''.

26 USC 6651.>> is amended by striking ``$205'' and inserting ``$330''.

(c) Effective<<NOTE: Date.--The amendments made by this section shall apply to returns required to be filed after December 31, 2019.

26 USC 6651 note.>> Effective Date.--The amendments made by this section shall apply to returns required to be filed after December 31, 2019.

PassedApproved theJuly House1, of Representatives June 10, 2019.

Attest:LEGISLATIVE HISTORY--H.R.

CHERYL3151: L.

JOHNSON,--------------------------------------------------------------------------- Clerk.CONGRESSIONAL RECORD, Vol.

165 (2019):

June 10, considered and passed House.

June 13, considered and passed Senate.

DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2019):

July 1, Presidential statement.

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