114 S1578 IS: Taxpayer Bill of Rights Enhancement Act of 2015
U.S. Senate
2015-06-16
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.
(a)
This Act may be cited as the Taxpayer Bill of Rights Enhancement Act of 2015
.
(b)Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986.
(c)The table of contents for this Act is as follows:Sec. 1. Short title, etc. TITLE I—Taxpayer bill of rights and Internal Revenue Service accountability Sec. 101. Duty to ensure that IRS employees are familiar with and act in accord with certain taxpayer rights. Sec. 102. Revisions relating to termination of employment of IRS employees for misconduct. Sec. 103. Codification of rules for retention of Internal Revenue Service emails. TITLE II—The right to privacy Sec. 201. Criminal penalty for unauthorized disclosure or inspection. Sec. 202. Civil damages for unauthorized disclosure or inspection. Sec. 203. IRS employees prohibited from using personal email accounts for official business. Sec. 204. Compliance by contractors with confidentiality safeguards. TITLE III—The right to appeal in an independent forum and to challenge the Internal Revenue Service position and be heard Sec. 301. Increase in limitations on civil damages for certain unauthorized collection actions. Sec. 302. Extension of time limit for contesting IRS levy. Sec. 303. Expansion of declaratory judgment remedy to tax-exempt organizations. TITLE IV—The right to a fair and just tax system Sec. 401. Waiver of user fee for installment agreements using automated withdrawals. Sec. 402. Individuals held harmless on improper levy on individual retirement plan. Sec. 403. Office of Chief Counsel review of offers-in-compromise. Sec. 404. Authority of the National Taxpayer Advocate to comment on Treasury regulations. Sec. 405. Individual estimated tax. Sec. 406. Corporate estimated tax. Sec. 407. Increase in large corporation threshold for estimated tax payments. Sec. 408. Expansion of interest netting. Sec. 409. Clarification of application of Federal tax deposit penalty. TITLE V—The right to be informed Sec. 501. Collection activities with respect to joint return disclosable to either spouse based on oral request. Sec. 502. Disclosure of taxpayer identity for tax refund purposes. Sec. 503. Release of information regarding the status of certain investigations. Sec. 504. Mandatory electronic filing for annual returns of exempt organizations. TITLE VI—The right to qualify service Sec. 601. Free electronic filing. Sec. 602. Access to appeals. <enum>I</enum> <header>Taxpayer bill of rights and Internal Revenue Service accountability</header> <section id="HE86BB58326024219A09C53D1FC0FFFD5"><enum>101.</enum><header>Duty to ensure that IRS employees are familiar with and act in accord with certain taxpayer rights</header> <subsection id="H752740A6CED242E39C212D698C621EAC"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/7803">Section 7803(a)</external-xref> of the Internal Revenue Code of 1986 is amended by redesignating paragraph (3) as paragraph (4) and by inserting after paragraph (2) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H2414C4A33C0447A688A4F17537216DCA" style="OLC">
<paragraph id="H2B245FD8701948F4A1BC15D770C5C382"><enum>(3)</enum><header>Execution of duties in accord with taxpayer rights</header><text display-inline="yes-display-inline">In discharging his duties, the Commissioner shall ensure that employees of the Internal Revenue Service are familiar with and act in accord with taxpayer rights as afforded by other provisions of this title, including—</text>
<subparagraph id="H44D64599012649C4B80781BB290742B1"><enum>(A)</enum><text>the right to be informed,</text> </subparagraph><subparagraph id="H9A2B08CABD074B60ADF8E0270CBB402E"><enum>(B)</enum><text>the right to quality service,</text>
</subparagraph><subparagraph id="HE80E61065CEC4CEF88392AD6D91727BD"><enum>(C)</enum><text>the right to pay no more than the correct amount of tax,</text> </subparagraph><subparagraph id="H357E6D64C247462383267D3C337F5302"><enum>(D)</enum><text>the right to challenge the position of the Internal Revenue Service and be heard,</text>
</subparagraph><subparagraph id="H29540C94DACB47A4A77B033140DFF3AB"><enum>(E)</enum><text>the right to appeal a decision of the Internal Revenue Service in an independent forum,</text> </subparagraph><subparagraph id="HDC2F6753C38D4581AAE7FE4B6B7B0D47"><enum>(F)</enum><text>the right to finality,</text>
</subparagraph><subparagraph id="H1344DE56A2DB409A8034A3FC7FE20607"><enum>(G)</enum><text>the right to privacy,</text> </subparagraph><subparagraph id="H9B5878632D51480BB8846FCA0DC0B09D"><enum>(H)</enum><text>the right to confidentiality,</text>
</subparagraph><subparagraph id="HF6C0C2E875DB42BFA96EDE3FBF4919BC"><enum>(I)</enum><text>the right to retain representation, and</text> </subparagraph><subparagraph id="H08BC4F924A74475CA9802EDB282DC87B"><enum>(J)</enum><text>the right to a fair and just tax system.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H3C505546E17349CF9E122EE42F6F80CD"><enum>(b)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall take effect on the date of the enactment of this Act.</text> </subsection></section><section id="ID9BB250A7892347EEB6F6997C7652BC2D"><enum>102.</enum><header>Revisions relating to termination of employment of IRS employees for misconduct</header> <subsection id="idfa8d548b96434772b05d2aa421681d0a"><enum>(a)</enum><header>Termination for taking official actions for political purposes</header><text>Paragraph (10) of section 1203(b) of the Internal Revenue Service Restructuring and Reform Act of 1998 is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id4227C95DFA8D4B378CA00720D6643D7D" style="OLC">
<paragraph id="id6f844d58f047496f82bc93c9cbea717b"><enum>(10)</enum><text>performing, delaying, or failing to perform (or threatening to perform, delay, or fail to perform) any official action (including any audit) with respect to a taxpayer for purpose of extracting personal gain or benefit or for a political purpose.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id84F580F3EB4F4214A28AD5BFBA5C6C62"><enum>(b)</enum><header>Notification of decision not To terminate employment</header><text>Section 1203(c) of the Internal Revenue Service Restructuring and Reform Act of 1998 is amended by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="idA9A520EC3C984C03BA761A7E25CD94C0" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="id9A4717862F484928892AE8BFF0789092"><enum>(4)</enum><header>Notification</header><text>In any case in which the Commissioner exercises the authority under paragraph (1), the Commissioner shall submit to the chairman and ranking member of the Committee on Finance of the Senate and the chairman and ranking member of the Committee on Ways and Means of the House of Representatives of the reasons for taking a personnel action other than termination.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="idB86F9F5CC2F54A728E7FF1EFC1F8E380"><enum>103.</enum><header>Codification of rules for retention of Internal Revenue Service emails</header>
<subsection id="idB2F8630DDC2D48B7980E2A821AC591C9"><enum>(a)</enum><header>Retention of records</header><text>Email records of the Internal Revenue Service shall be retained in an appropriate electronic system that supports records management and litigation requirements, including the capability to identify, retrieve, and retain the records, in accordance with this subsection:</text>
<paragraph id="id5636EB5593BC44D39BC871814E3E7BEC"><enum>(1)</enum><text>Prior to the date on which the Treasury Inspector General for Tax Administration makes the certification under subsection (c)(1), the Commissioner of Internal Revenue and the Chief Counsel for the Internal Revenue Service shall retain all email records.</text>
</paragraph><paragraph id="idFCDE5D6885764869B53A6B045B8B9689"><enum>(2)</enum><text>Not later than December 31, 2016, the Commissioner of Internal Revenue and the Chief Counsel for the Internal Revenue Service shall maintain email records of all principal officers and specified employees of the Internal Revenue Service for a period of 15 years beginning on the date such record was generated.</text>
</paragraph></subsection><subsection id="id42D97FB9835346629B1978FEEE8E2B62"><enum>(b)</enum><header>Transmission of records to the National Archives</header><text>Not later than the last day of the 15-year period described in subsection (a)(2), the Commissioner of Internal Revenue and the Chief Counsel for the Internal Revenue Service shall transfer the email records of principal officers of the Internal Revenue Service to the Archivist of the United States.</text>
</subsection><subsection id="id2944C4074B33466BA476C00203146DAE"><enum>(c)</enum><header>Compliance</header>
<paragraph id="id90948B52BE304B95922B73CA03A59256"><enum>(1)</enum><header>Certification</header><text>On the date that the Treasury Inspector General for Tax Administration determines that the Internal Revenue Service has a program in place that complies with the requirements of subsections (a)(2) and (b), the Treasury Inspector General for Tax Administration shall certify to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives that the Internal Revenue Service is in compliance with such requirements.</text>
</paragraph><paragraph id="id14206D51E3164804B3EACD0B991A1697"><enum>(2)</enum><header>Reports</header>
<subparagraph id="id1F0F7C89269D4E38BD6AB87FF8B6B4E5"><enum>(A)</enum><header>Interim report</header><text>Not later than March 1, 2016, the Treasury Inspector General for Tax Administration shall submit a report to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives on the steps being taken by the Commissioner of Internal Revenue and the Chief Counsel for the Internal Revenue Service to comply with the requirements of subsections (a)(2) and (b).</text>
</subparagraph><subparagraph id="idC3EA5E3C37A54DEB9B3FA9D877B8071F"><enum>(B)</enum><header>Final report</header><text>Not later than March 1, 2017, the Treasury Inspector General for Tax Administration shall submit a report to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives describing whether the Internal Revenue Service is in compliance with the requirements of subsections (a)(2) and (b).</text>
</subparagraph></paragraph></subsection><subsection id="idF537CFC1F81F4E0AA5957A45A333DC4E"><enum>(d)</enum><header>Definitions</header>
<paragraph id="idD6B1169E383C4BE88BE5F8CECB680523"><enum>(1)</enum><header>Principal officers</header><text>For purposes of this section, the term <term>principal officer</term> means, with respect to the Internal Revenue Service—</text> <subparagraph id="idF477A536DEC242488AB500493BC3D02A"><enum>(A)</enum><text>any employee whose position is listed under the Internal Revenue Service in the most recent version of the United States Government Manual published by the Office of the Federal Register,</text>
</subparagraph><subparagraph id="idBF707BABC7594791BF037E8842DA49A5"><enum>(B)</enum><text>any employee who is a senior staff member reporting directly to the Commissioner of Internal Revenue, and</text>
</subparagraph><subparagraph id="id8F9C139AC05E43B5988A023DA725F145"><enum>(C)</enum><text>any—</text> <clause id="idD9ADDFF018354D54B13528EF9CB23D1C"><enum>(i)</enum><text>associate counsel, deputy counsel, or division head in the Office of the Chief Counsel for the Internal Revenue Service, and</text>
</clause><clause id="idC51D31E280784A6C9E8A0A8025EBA1DF"><enum>(ii)</enum><text>any employee who is a senior staff member,</text> </clause><continuation-text continuation-text-level="subparagraph">who reports directly to such Chief Counsel.</continuation-text></subparagraph></paragraph><paragraph id="id01B78FD98B504F6EA47419F14BDA58A8"><enum>(2)</enum><header>Specified employees</header><text>The term <term>specified employee</term> means, with respect to the Internal Revenue Service, any employee who—</text>
<subparagraph id="id1F8D59BB872F4DDDA0CA219CAECCFC0F"><enum>(A)</enum><text>holds a Senior Executive Service position (as defined in section 3132 of title 5, United States Code) in the Internal Revenue Service or the Office of Chief Counsel for the Internal Revenue Service), and</text>
</subparagraph><subparagraph id="idDB65330728E74130B43E62B0F52E2BE2"><enum>(B)</enum><text>is not a principal officer of the Internal Revenue Service.</text> </subparagraph></paragraph></subsection></section><enum>II</enum><header>The right to privacy</header> <section commented="no" display-inline="no-display-inline" id="id52B22050088345E1AB9445DA040A2E12"><enum>201.</enum><header>Criminal penalty for unauthorized disclosure or inspection</header> <subsection commented="no" display-inline="no-display-inline" id="id02E1AB6532D14A41BB5219636E3BB6AB"><enum>(a)</enum><header>Unauthorized disclosure</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/7213">Section 7213</external-xref> is amended by striking <quote>$5,000</quote> each place it appears in subsections (a) and (d) and inserting <quote>$20,000</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id56E9AD2A999C4A4F8922F8DA8A7E6C22"><enum>(b)</enum><header>Unauthorized inspection</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/7213A">Section 7213A(b)(1)</external-xref> is amended by striking <quote>$1,000</quote> and inserting <quote>$5,000</quote>.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="id41842FFE368C46B0B01CC79DB8DF1E29"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to violations occurring after the date of the enactment of this Act.</text>
</subsection></section><section commented="no" id="IDCC21F8093CE64DB3AAE3268B6DEAAFD7"><enum>202.</enum><header>Civil damages for unauthorized disclosure or inspection</header>
<subsection commented="no" id="ID67108931B7054BADBA0324E1A7B39FBF"><enum>(a)</enum><header>Notice to Taxpayer</header><text>Subsection (e) of <external-xref legal-doc="usc" parsable-cite="usc/26/7431">section 7431</external-xref> is amended by adding at the end the following new sentences: <quote>The Secretary shall also notify such taxpayer if the Internal Revenue Service or, upon notice to the Secretary by a Federal or State agency, if such Federal or State agency, proposes an administrative determination as to disciplinary or adverse action against an employee arising from the employee’s unauthorized inspection or disclosure of the taxpayer’s return or return information. The notice described in this subsection shall include the date of the inspection or disclosure and the rights of the taxpayer under such administrative determination.</quote>.</text>
</subsection><subsection commented="no" id="IDDDB019C7DF29437093EA0804F442235F"><enum>(b)</enum><header>Payment Authority Clarified</header>
<paragraph commented="no" id="IDB026889E81464237994356BEA42BFEB9"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/7431">Section 7431</external-xref> is amended by adding at the end the following new subsection:</text>
<quoted-block id="ID93F8F2265FC84B00BF7AC00492C7D5C1" style="OLC">
<subsection commented="no" id="ID2020589A076B4CF9AFC3BA5292122F41"><enum>(i)</enum><header>Payment Authority</header><text>Claims pursuant to subsection (a)(1) shall be payable out of funds appropriated under section 1304 of title 31, United States Code.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="IDC173AF9601B944AEAE9A5D915A81B5B6"><enum>(2)</enum><header>Annual reports of payments</header><text>The Secretary of the Treasury shall annually report to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives regarding payments made from the United States Judgment Fund under <external-xref legal-doc="usc" parsable-cite="usc/26/7431">section 7431(i)</external-xref> of the Internal Revenue Code of 1986.</text>
</paragraph></subsection><subsection commented="no" id="IDDA644783364F4A219240A2438E409F99"><enum>(c)</enum><header>Burden of Proof for Good Faith Exception Rests With Person Making Inspection or Disclosure</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/7431">Section 7431(b)</external-xref> is amended by adding at the end the following new flush sentence:</text>
<quoted-block display-inline="no-display-inline" id="id3A0A9ECA9E3444A08434DF9FD1DD1293" style="OLC">
<quoted-block-continuation-text commented="no" quoted-block-continuation-text-level="subsection">In any proceeding involving the issue of the existence of good faith, the burden of proof with
respect to such issue shall be on the person who made the inspection or
disclosure.</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="IDA72ED132B21D4098BD64533DED16B0E0"><enum>(d)</enum><header>Reports</header><text>Subsection (p) of <external-xref legal-doc="usc" parsable-cite="usc/26/6103">section 6103</external-xref> is amended by adding at the end the following new paragraph:</text>
<quoted-block id="ID3615F318D1A54656AC965BF31569B04C" style="OLC">
<paragraph commented="no" id="IDE2EBC2D94B80456AB76C6B1D6FA8B496"><enum>(9)</enum><header>Report on willful unauthorized disclosure and inspection</header><text>As part of the report required by paragraph (3)(C) for each calendar year, the Secretary shall furnish information regarding the willful unauthorized disclosure and inspection of returns and return information, including the number, status, and results of—</text>
<subparagraph commented="no" id="ID6989DC38BFF04EE38CDE80B7993F145B"><enum>(A)</enum><text>administrative investigations,</text> </subparagraph><subparagraph commented="no" id="IDACB405D25C5B4AFB968D85CCB1D0E45F"><enum>(B)</enum><text>civil lawsuits brought under section 7431 (including the amounts for which such lawsuits were settled and the amounts of damages awarded), and</text>
</subparagraph><subparagraph commented="no" id="ID6E96E7CC343849B59E388871D396527A"><enum>(C)</enum><text>criminal prosecutions.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" id="IDB711D4E24B424A1F9FAE0BD2C1CDC5B8"><enum>(e)</enum><header>Increase in amount of damages per violation</header> <paragraph commented="no" id="id6E026B97B74D4A8283FE5AA78F77B7FE"><enum>(1)</enum><header>In general</header><text>Subparagraph (A) of <external-xref legal-doc="usc" parsable-cite="usc/26/7431">section 7431(c)(1)</external-xref> is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id7588EE90FA1A4077BAE5CA86CF4AB0B9" style="OLC">
<subparagraph commented="no" id="idA784C74587E547099F08E3E4DB920F9F"><enum>(A)</enum><text>the sum of—</text> <clause commented="no" id="id56745917E7B041C7BC2B5DB19327F96C"><enum>(i)</enum><text>$5,000 for each act of unauthorized inspection of a return or return information with respect to which such defendant is found liable, and</text>
</clause><clause commented="no" id="idDC08BCFE30484F8F91F9845BBD940975"><enum>(ii)</enum><text>$10,000 for each act of unauthorized disclosure of a return or return information with respect to which such defendant is found liable, or</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="id27AF8D555681461DB9E134A804A4A4C8"><enum>(2)</enum><header>Punitive damages</header>
<subparagraph commented="no" id="idC76EF60675834503A9D4110E2AA99947"><enum>(A)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/7431">Section 7431(c)</external-xref> is amended by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively, and by inserting after paragraph (1) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id9E8356C5A21C48FB93DC59D86CD2D13A" style="OLC">
<paragraph commented="no" id="id106126974DB34AAF84A11D598E9B7F84"><enum>(2)</enum><text>in the case of willful inspection or disclosure or an inspection or disclosure which is the result of gross negligence, punitive damages, plus</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" id="id550638C16ECB4478BDDD8F629F1BC704"><enum>(B)</enum><header>Conforming amendment</header><text>Subparagraph (B) of <external-xref legal-doc="usc" parsable-cite="usc/26/7431">section 7431(c)</external-xref> is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="id76E8F26046354FCC868902B0322B8CBD" style="OLC"> <subparagraph commented="no" id="idEB0497A1C73B42E69D2E324EE0B0F413"><enum>(B)</enum><text>the actual damages sustained by the plaintiff as a result of such unauthorized inspection or disclosure, plus</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection><subsection commented="no" id="id7404948CF7284C83AC37297FE7A7AC10"><enum>(f)</enum><header>Effective Dates</header>
<paragraph commented="no" id="ID03DE483C5A4146488BA7E3529D9E7A4E"><enum>(1)</enum><header>Notice</header><text>The amendment made by subsection (a) shall apply to determinations made after the date which is 180 days after the date of the enactment of this Act.</text>
</paragraph><paragraph commented="no" id="ID40B43EB5380D4389B78E82C1B83CF0AA"><enum>(2)</enum><header>Payment authority</header><text>The amendment made by subsection (b)(1) shall take effect on the date which is 180 days after the date of the enactment of this Act.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idB47975E2A8C94E6F9B58DB196511E53A"><enum>(3)</enum><header display-inline="yes-display-inline">Burden of proof</header><text display-inline="yes-display-inline">The amendments made by subsection (c) shall apply to inspections and disclosures occurring on and after the date which is 180 days after the date of the enactment of this Act.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID6E82EC6610214FD0AD3809BC2BD73128"><enum>(4)</enum><header>Reports</header><text>Subsection (b)(2) and the amendment made by subsection (d) shall apply to calendar years ending after the date which is 180 days after the date of the enactment of this Act.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id2D28197733CA40BBBEDE0E884D59F5F2"><enum>(5)</enum><header>Increase in damages</header><text>The amendment made by subsection (e) shall apply to proceedings commenced after the date of the enactment of this Act.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="HB335240251FC47538A57319E1E4E934B"><enum>203.</enum><header display-inline="yes-display-inline">IRS employees prohibited from using personal email accounts for official business</header><text display-inline="no-display-inline">No officer or employee of the Internal Revenue Service may use a personal email account to conduct any official business of the Government.</text>
</section><section id="ID10C1BADB0A4F47B883693471C5C8E64C"><enum>204.</enum><header>Compliance by contractors with confidentiality safeguards</header>
<subsection id="ID263689D97C8941E48382137E3D4B5947"><enum>(a)</enum><header>In General</header><text>Section 6103(p), as amended by this Act, is amended by adding at the end the following new paragraph:</text>
<quoted-block id="ID4478DF4554374ECCB731AE2BFD0F37EC" style="OLC">
<paragraph id="ID3170213AEB0C406ABCBD8983E6F1B1A5"><enum>(10)</enum><header>Disclosure to contractors and other agents</header><text>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—</text>
<subparagraph id="ID33EEC60FE8984D8281F936438518DB98"><enum>(A)</enum><text>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,</text>
</subparagraph><subparagraph id="ID3465065BDD0E40EB9AB32E224F905DE5"><enum>(B)</enum><text>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,</text>
</subparagraph><subparagraph id="ID465D60B0D38141BC8721E642FFE45704"><enum>(C)</enum><text>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</text>
</subparagraph><subparagraph id="IDEB3558DE289D48FA92A78212BA764394"><enum>(D)</enum><text>certifies to the Secretary for the most recent annual period that such contractor or other agent is in compliance with all such requirements.</text>
</subparagraph><continuation-text continuation-text-level="paragraph">The certification required by subparagraph (D) shall include the name and address of each
contractor and other agent, a description of the contract or agreement
with such contractor or other agent, and the duration of such contract or
agreement. The requirements of this paragraph shall not apply to
disclosures pursuant to subsection (n) for purposes of Federal tax
administration.</continuation-text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID3623C6B545C44328854F187C0B4BCE30"><enum>(b)</enum><header>Conforming Amendment</header><text>Subparagraph (B) of <external-xref legal-doc="usc" parsable-cite="usc/26/6103">section 6103(p)(8)</external-xref> is amended by inserting <quote>or paragraph (10)</quote> after <quote>subparagraph (A)</quote>.</text> </subsection><subsection id="ID0821A540870B48D1815C266685095651"><enum>(c)</enum><header>Effective Date</header> <paragraph id="IDC307BBC6D62546AB99E2FD732399C941"><enum>(1)</enum><header>In general</header><text>The amendments made by this section shall apply to disclosures made after the date of the enactment of this Act.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id988DD67B8F0C4C5B8C9F287AAFC33175"><enum>(2)</enum><header>Certifications</header><text>The first certification under <external-xref legal-doc="usc" parsable-cite="usc/26/6103">section 6103(p)(10)(D)</external-xref> of the Internal Revenue Code of 1986, as added by subsection (a), shall be made with respect to the portion of calendar year 2015 following the date of the enactment of this Act.</text>
</paragraph></subsection></section><enum>III</enum><header>The right to appeal in an independent forum and to challenge the Internal Revenue Service position
and be heard</header>
<section commented="no" display-inline="no-display-inline" id="id02E2792AAA8E448C9F5B115AF12D33D0"><enum>301.</enum><header>Increase in limitations on civil damages for certain unauthorized collection actions</header>
<subsection commented="no" display-inline="no-display-inline" id="idDC11F6BE9AC2426C8E68BC9C3D9CAF94"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/7433">Section 7433(b)</external-xref> is amended by striking <quote>$1,000,000 ($100,000</quote> and inserting <quote>$1,500,000 ($150,000</quote>.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="id19A2FE027AE64E0EAC2924DD93874B63"><enum>(b)</enum><header>Punitive damages in the case of reckless or intentional action</header><text>Subsection (b) of <external-xref legal-doc="usc" parsable-cite="usc/26/7433">section 7433</external-xref> is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idFA4156F8AEFB46CAA39EB1BE942A9C58"><enum>(1)</enum><text>by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively, and by moving such subparagraphs 2 ems to the right,</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id333E0302580E4CFC8F79DF0A52A859FB"><enum>(2)</enum><text>by striking <quote>In any action</quote> and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="idE0AF39C08E484399B0B038AC6BD134C7" style="OLC"> <paragraph commented="no" id="id9793066b832f423e8a1eec598f991be6"><enum>(1)</enum><header>In general</header><text>In any action</text>
</paragraph><after-quoted-block>, and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id1169B89CAF114E65A50E3BC456617B6D"><enum>(3)</enum><text>by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="id8DFC0277E0294D8F928408F657535E0A" style="OLC"> <paragraph commented="no" id="idB36D535661914BC2928C0FFD1000904D"><enum>(2)</enum><header>Punitive damages for willful and reckless actions</header><text>In any action brought under subsection (a) or petition filed under subsection (e) in which the defendant is found to be liable and to have acted recklessly or intentionally, the court may award the plaintiff punitive damages.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id8D13CABC6B8142A384BD93C57F77D9C0"><enum>(c)</enum><header>Period for bringing action</header><text>Paragraph (3) of <external-xref legal-doc="usc" parsable-cite="usc/26/7433">section 7433(d)</external-xref> is amended by striking <quote>the date the right of action accrues</quote> and inserting <quote>the later of the date of on which administrative remedies available within the Internal Revenue Service have been exhausted or the date on which the taxpayer reasonably could have discovered that the actions of the officer or employee were done in disregard of a provision of this title or any regulation promulgated under this title</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idA063CF2B054241F2ADAC1C1B35E300DF"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply in the case of proceedings commenced after the date of the enactment of this Act.</text>
</subsection></section><section id="ID0791EB75443B4BC5953C7F25A96CB058"><enum>302.</enum><header>Extension of time limit for contesting IRS levy</header>
<subsection id="IDBAD0E882231E4C4485B03E462AF41657"><enum>(a)</enum><header>Extension of Time for Return of Property Subject to Levy</header><text>Subsection (b) of <external-xref legal-doc="usc" parsable-cite="usc/26/6343">section 6343</external-xref> is amended by striking <quote>9 months</quote> and inserting <quote>2 years</quote>.</text> </subsection><subsection id="ID5828136532C84AEFACE07D73904A80FF"><enum>(b)</enum><header>Period of Limitation on Suits</header><text>Subsection (c) of <external-xref legal-doc="usc" parsable-cite="usc/26/6532">section 6532</external-xref> is amended—</text>
<paragraph id="ID009D31BE64A14E21B71A45DB1490B259"><enum>(1)</enum><text>by striking <quote>9 months</quote> in paragraph (1) and inserting <quote>2 years</quote>, and</text> </paragraph><paragraph id="IDE5CE9C3A6E864C9884CD9320FB232906"><enum>(2)</enum><text>by striking <quote>9-month</quote> in paragraph (2) and inserting <quote>2-year</quote>.</text>
</paragraph></subsection><subsection id="IDA58FE87BC59643F8BEAC16049AC301A2"><enum>(c)</enum><header>Effective Date</header><text>The amendments made by this section shall apply to—</text> <paragraph id="IDFABC86AE30914AAE8E43E1FED126C2A7"><enum>(1)</enum><text>levies made after the date of the enactment of this Act, and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id7D030C47088446D786B7CCB2158F15A1"><enum>(2)</enum><text>levies made on or before such date if the 9-month period has not expired under <external-xref legal-doc="usc" parsable-cite="usc/26/6343">section 6343(b)</external-xref> of the Internal Revenue Code of 1986 (without regard to this section) as of such date.</text>
</paragraph></subsection></section><section id="IDD5EC47345B2C43739B8B84D568525491"><enum>303.</enum><header>Expansion of declaratory judgment remedy to tax-exempt organizations</header>
<subsection id="IDEC347483247A4A46B4E44AFCC61F4F4D"><enum>(a)</enum><header>In general</header><text>Paragraph (1) of <external-xref legal-doc="usc" parsable-cite="usc/26/7428">section 7428(a)</external-xref> is amended—</text> <paragraph id="IDBE97218F41824C7DAB4C1BCC09872D78"><enum>(1)</enum><text>in subparagraph (B) by inserting after <quote>509(a))</quote> the following: <quote>or as a private operating foundation (as defined in section 4942(j)(3))</quote>; and</text>
</paragraph><paragraph id="IDDC93D01058804E64BDBEF3A18D243AF3"><enum>(2)</enum><text>by amending subparagraph (C) to read as follows:</text> <quoted-block id="IDA5CB2961905A4817AB7D72F61A4AB168"> <subparagraph id="IDA01C8D169BA94E13BD58EC7D2369070C"><enum>(C)</enum><text>with respect to the initial qualification or continuing qualification of an organization as an organization described in section 501(c) (other than paragraph (3)) or 501(d) which is exempt from tax under section 501(a), or</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" id="ID7E26716DFBDC4AA2B993290C78E082B6"><enum>(b)</enum><header>Court jurisdiction</header><text>Subsection (a) of <external-xref legal-doc="usc" parsable-cite="usc/26/7428">section 7428</external-xref> is amended in the material following paragraph (2) by striking <quote>United States Tax Court, the United States Claims Court, or the district court of the United States for the District of Columbia</quote> and inserting the following: <quote>United States Tax Court (in the case of any such determination or failure) or the Court of Federal Claims or the district court of the United States for the District of Columbia (in the case of a determination or failure with respect to an issue referred to in subparagraph (A), (B), or (D) of paragraph (1)),</quote>.</text>
</subsection><subsection commented="no" id="idD69AEC4C0DCC43E5B11110B255CC2A1F"><enum>(c)</enum><header>Technical amendment</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/7428">Section 7428</external-xref>, as amended by subsection (b), is amended by striking <quote>Claims Court</quote> each place it appears in subsection (a), (b)(2), and (c)(1)(C)(iii) and inserting <quote>Court of Federal Claims</quote>.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="id4E7B92CC52B24393901DB7143D54BCC2"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to pleadings filed after the date of the enactment of this Act.</text>
</subsection></section><enum>IV</enum><header>The right to a fair and just tax system</header>
<section id="ID6138E4FD65E0482088D90573D366AF7E"><enum>401.</enum><header>Waiver of user fee for installment agreements using automated withdrawals</header>
<subsection id="ID9D35044B1320463CA3F983968CAC42D4"><enum>(a)</enum><header>In General</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6159">Section 6159</external-xref> is amended by redesignating subsections (e) and (f) as subsections (f) and (g), respectively, and by inserting after subsection (d) the following new subsection:</text>
<quoted-block id="ID226A0DD1A97D4E3CA5E47FCD821AE4E8" style="OLC">
<subsection id="IDF8148E15D2354F39B79EDFE5F434E794"><enum>(e)</enum><header>Waiver of user fees for installment agreements using automated withdrawals</header><text>In the case of a taxpayer who enters into an installment agreement in which automated installment payments are agreed to, the Secretary shall waive the fee (if any) for entering into the installment agreement.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID71D33BED1EFE490092B0395798F97FEB"><enum>(b)</enum><header>Effective Date</header><text>The amendments made by this section shall apply to agreements entered into on or after the date which is 180 days after the date of the enactment of this Act.</text>
</subsection></section><section id="id671BB797C21E4E8097DE6709CA7D21B5"><enum>402.</enum><header>Individuals held harmless on improper levy on individual retirement plan</header>
<subsection id="id70CF10728B964ACF945BEDA9D23A8C22"><enum>(a)</enum><header>In General</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6343">Section 6343</external-xref> is amended by adding at the end the following new subsection:</text>
<quoted-block id="idF906C5CD96A24ECCB37A39817DE43A43" style="OLC">
<subsection id="id43750B19BD7D4BB88E5C6C73973A4F8F"><enum>(f)</enum><header>Individuals Held Harmless on Wrongful Levy, etc. on Individual Retirement Plan</header>
<paragraph id="id20577FC34AF24523A54889EF28D4FDD6"><enum>(1)</enum><header>In general</header><text>If the Secretary determines that an individual retirement plan has been levied upon in a case to which subsection (b) or (d)(2)(A) applies and property or an amount of money is returned to the individual who is the beneficiary of such plan—</text>
<subparagraph id="id8E17B7729A67491FB9F8ABD7F0173177"><enum>(A)</enum><text>the individual may contribute such property or an amount equal to the sum of—</text>
<clause id="id9AD6F10A00264985ADBC6694117761E4"><enum>(i)</enum><text>the amount of money returned by the Secretary on account of such levy, and</text> </clause><clause id="id9335BF8784D048599870AC4F0BD61B25"><enum>(ii)</enum><text>interest paid under subsection (c) on such amount of money,</text>
</clause><continuation-text continuation-text-level="subparagraph">into an individual retirement plan (other than an endowment contract) to which a rollover
contribution of a distribution from the
plan levied upon is permitted if such contribution is made not later than
the due date (not including extensions) for filing the return of tax for
the taxable year in which such property or amount of money is returned,
and</continuation-text></subparagraph><subparagraph id="id8E51B1C4706A4C5C8EFB759AD9CE72F2"><enum>(B)</enum><text>the Secretary shall, at the time such property or amount of money is returned, notify such individual that a contribution described in subparagraph (A) may be made.</text>
</subparagraph></paragraph><paragraph id="idDCE3B6B585144570BCD3C65518515197"><enum>(2)</enum><header>Treatment as rollover</header><text>The distribution on account of the levy and any contribution under paragraph (1) with respect to such distribution shall be treated for purposes of this title as if such distribution and contribution were part of a rollover contribution described in section 408(d)(3)(A)(i); except that—</text>
<subparagraph id="id95BC930EEABD40A3BECB0A89E8394261"><enum>(A)</enum><text>the contribution shall be treated as having been made to the individual retirement plan for the taxable year in which the distribution on account of the levy occurred, and the interest paid under subsection (c) shall be treated as earnings within such plan after the contribution and as not includible in gross income, and</text>
</subparagraph><subparagraph id="idD5E52CD7E5D845479DA89B43FF4E4AC6"><enum>(B)</enum><text>such contribution shall not be taken into account under section 408(d)(3)(B).</text> </subparagraph></paragraph><paragraph id="id924B1CFB12B04DFDA27B97682A722965"><enum>(3)</enum><header>Refund, etc., of income tax on levy</header><text>Except in the case of a rollover contribution under this subsection from an individual retirement plan that is not a Roth IRA to a Roth IRA, if any amount is includible in gross income for a taxable year by reason of a levy referred to in paragraph (1) and any portion of such amount is treated as a rollover contribution under paragraph (2), any tax imposed by chapter 1 on such portion shall not be assessed, and if assessed shall be abated, and if collected shall be credited or refunded as an overpayment made on the due date for filing the return of tax for such taxable year.</text>
</paragraph><paragraph id="id65A76452D2C4409BB04ED955F73B82C1"><enum>(4)</enum><header>Interest</header><text>Notwithstanding subsection (d), interest shall be allowed under subsection (c) in a case in which the Secretary makes a determination described in subsection (d)(2)(A) with respect to a levy upon an individual retirement plan.</text>
</paragraph><paragraph id="id4ACCB3CF942B4002B52BD3C14508EFB9"><enum>(5)</enum><header>Treatment of inherited accounts</header><text>For purposes of paragraph (1)(A), section 408(d)(3)(C) shall be disregarded in determining whether an individual retirement plan is a plan to which a rollover contribution of a distribution from the plan levied upon is permitted.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idAB2AA5780FF14FA892F4F76867E5D969"><enum>(b)</enum><header>Effective Date</header><text>The amendment made by this section shall apply to amounts paid under subsections (b), (c), and (d)(2)(A) of <external-xref legal-doc="usc" parsable-cite="usc/26/6343">section 6343</external-xref> of the Internal Revenue Code of 1986 after December 31, 2015.</text>
</subsection></section><section id="ID6AB3BF1CDF0C48AD8794129D72777790"><enum>403.</enum><header>Office of Chief Counsel review of offers-in-compromise</header>
<subsection id="ID62998819754B43C58B71AC6C377C3696"><enum>(a)</enum><header>In General</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/7122">Section 7122(b)</external-xref> is amended by striking <quote>Whenever a compromise</quote> and all that follows through <quote>his delegate</quote> and inserting <quote>If the Secretary determines that an opinion of the General Counsel for the Department of the Treasury, or the Counsel’s delegate, is required with respect to a compromise, there shall be placed on file in the office of the Secretary such opinion</quote>.</text>
</subsection><subsection id="IDECECD41E5C18437D843D7490DB15A197"><enum>(b)</enum><header>Conforming Amendments</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/7122">Section 7122(b)</external-xref> is amended by striking the second and third sentences.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="ID336A4EBCCF3F4897A128EE3C4A79F036"><enum>(c)</enum><header>Effective Date</header><text>The amendments made by this section shall apply to offers-in-compromise submitted or pending on or after the date of the enactment of this Act.</text>
</subsection></section><section id="H66FFA66C733B4579B3A8DF3FCF562558"><enum>404.</enum><header>Authority of the National Taxpayer Advocate to comment on Treasury regulations</header>
<subsection id="H426BF404FB9E4BB19FCFDEEEAB12FE65"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/7805">Section 7805</external-xref> is amended by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="H11039CD804EB41BF9E653100D64CCA8A" style="OLC"> <subsection id="H1D2C4A9643D44DB4A8E0F4E041E8910D"><enum>(g)</enum><header>Review of impact of regulations on taxpayer rights</header> <paragraph id="HBC17426DF09B469381567E19B9622900"><enum>(1)</enum><header>Submissions to National Taxpayer Advocate</header><text display-inline="yes-display-inline">Prior to publication of any proposed or temporary regulation by the Secretary, the Secretary shall submit such regulation to the National Taxpayer Advocate for comment on the impact of such regulation on taxpayer rights or taxpayer burden. Not later than the date 4 weeks after the date of such submission, the National Taxpayer Advocate shall submit comments, if any, on such regulation to the Secretary.</text>
</paragraph><paragraph id="H33B494A6C72B4FE9BAB6E847C65B9537"><enum>(2)</enum><header>Consideration of comments</header><text>In prescribing any final regulation which supersedes a proposed or temporary regulation with respect to which the National Taxpayer Advocate has submitted comments—</text>
<subparagraph id="H0FD437FCA8084B98BEAB04FDAF633CD4"><enum>(A)</enum><text>the Secretary shall consider the comments of the National Taxpayer Advocate on such proposed or temporary regulation, and</text>
</subparagraph><subparagraph id="HF4824E7457844221B053D1CC7B9EBAD5"><enum>(B)</enum><text>the Secretary shall discuss its response to such comments in the preamble of such final regulation.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="id336C910F41D94C18ACF337ADC6AC44F0"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply with respect to regulations issued after the date of the enactment of this Act.</text>
</subsection></section><section id="ID4B3061A12826419CAD46D67FEC16517E"><enum>405.</enum><header>Individual estimated tax</header>
<subsection id="IDFFC15786D2094276B80890D1D37B9817"><enum>(a)</enum><header>Increase in Exception for Individuals Owing Small Amount of Tax</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6654">Section 6654(e)(1)</external-xref> is amended by striking <quote>$1,000</quote> and inserting <quote>$2,000</quote>.</text> </subsection><subsection id="IDC42B0411AC084EEDA9A8A26A3886647C"><enum>(b)</enum><header>Computation of Addition to Tax</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6654">Section 6654</external-xref> is amended by striking subsections (a) and (b) and inserting the following:</text>
<quoted-block id="IDE0D7F60AE5B84F7BA924CA82D78BEC44" style="OLC">
<subsection id="ID97914C1C3DDE4A868DBF2F2F71635EC0"><enum>(a)</enum><header>Addition to the Tax</header>
<paragraph id="IDA1F13AA5DE9E439083C34D8DF30701B3"><enum>(1)</enum><header>In general</header><text>Except as otherwise provided in this section, in the case of any underpayment of estimated tax by an individual for a taxable year, there shall be added to the tax under chapter 1, the tax under chapter 2, and the tax under chapter 2A for such taxable year the sum of the amounts determined under paragraph (2) for each day for which there is an underpayment.</text>
</paragraph><paragraph id="ID2749A01FBE444633BAFE506595BA99E9"><enum>(2)</enum><header>Amount of addition to tax</header><text>The amount determined under this paragraph for any day shall be the product of—</text> <subparagraph id="id76F6570D656E49329F13DD1DA0FE5307"><enum>(A)</enum><text>the underpayment rate established under subsection (b)(2) for such day, multiplied by</text>
</subparagraph><subparagraph id="id57000EAA195D42128533A303A932AB80"><enum>(B)</enum><text>the amount of the underpayment for such day.</text> </subparagraph></paragraph></subsection><subsection id="IDD9213B1E90C240F8B395291EF9F189A2"><enum>(b)</enum><header>Amount of underpayment; underpayment rate</header><text>For purposes of subsection (a)—</text>
<paragraph id="ID3DEF656F0F0D4BCDA65E5CA40A2E22C5"><enum>(1)</enum><header>Amount</header><text>The amount of underpayment on any day shall be the excess (if any) of—</text> <subparagraph id="ID06EE1AC56BFD498B86D67A541B2FC532"><enum>(A)</enum><text>the sum of the required installments for the taxable year the due dates for which are on or before such day, over</text>
</subparagraph><subparagraph id="ID054F4446DEBE40A393E956FD6B86904B"><enum>(B)</enum><text>the sum of the amounts of estimated tax payments made for such taxable year on or before such day.</text> </subparagraph></paragraph><paragraph id="IDE47C6787CBEE45289279CE6247D79A9F"><enum>(2)</enum><header>Determination of underpayment rate</header> <subparagraph id="IDDDB1317FD5364328A90CF02E521873FF"><enum>(A)</enum><header>In general</header><text>The underpayment rate with respect to any day in an installment underpayment period shall be the underpayment rate established under section 6621 for the first day of the calendar quarter in which such installment underpayment period begins.</text>
</subparagraph><subparagraph id="IDD70F02E2D56846E19790AF224D877212"><enum>(B)</enum><header>Installment underpayment period</header><text>For purposes of subparagraph (A), the term <term>installment underpayment period</term> means the period beginning on the day after the due date for a required installment and ending on the due date for the subsequent required installment (or in the case of the 4th required installment, the 15th day of the 4th month following the close of a taxable year).</text>
</subparagraph><subparagraph id="ID55EEE1BEF4CE4D47B6129F5063F29382"><enum>(C)</enum><header>Daily rate</header><text>The rate determined under subparagraph (A) shall be applied on a daily basis and shall be based on the assumption of 365 days in a calendar year.</text>
</subparagraph></paragraph><paragraph id="ID0D6B053394FA434E82AF2D663998A4AE"><enum>(3)</enum><header>Termination of estimated tax underpayment</header><text>No day after the end of the installment underpayment period for the 4th required installment specified in paragraph (2)(B) for a taxable year shall be treated as a day of underpayment with respect to such taxable year.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idB7542334533F40AA8C81E5D122AE2396"><enum>(c)</enum><header>Effective Date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2015.</text> </subsection></section><section id="ID9C31E9F15D41458B900F64D436F11D90"><enum>406.</enum><header>Corporate estimated tax</header> <subsection id="ID8E085ED7758E45D1A566054BDD216D09"><enum>(a)</enum><header>Increase in Small Tax Amount Exception</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6655">Section 6655(f)</external-xref> is amended by striking <quote>$500</quote> and inserting <quote>$1,000</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id62BA048F314A42639F1539286734909D"><enum>(b)</enum><header>Effective Date</header><text>The amendment made by this section shall apply to taxable years beginning after December 31, 2015.</text> </subsection></section><section id="ID182BE4679BD94D5AB4850E43E5B8BF0C"><enum>407.</enum><header>Increase in large corporation threshold for estimated tax payments</header> <subsection id="ID7C93622659AC4BA2B52B38304AE026A8"><enum>(a)</enum><header>In General</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6655">Section 6655(g)(2)</external-xref> is amended—</text>
<paragraph id="IDFFBFA4C4CB414F2090B9F4D759B85A31"><enum>(1)</enum><text>by striking <quote>$1,000,000</quote> in subparagraph (A) and inserting <quote>the applicable amount</quote>,</text> </paragraph><paragraph id="IDA96B380F79294FD49EB5F9B2A0B67BFB"><enum>(2)</enum><text>by striking <quote>the $1,000,000 amount specified in subparagraph (A)</quote> in subparagraph (B)(ii) and inserting <quote>the applicable amount</quote>,</text>
</paragraph><paragraph id="ID3E4D57EDD2474CD3B320DFCB15F56B01"><enum>(3)</enum><text>by redesignating subparagraph (B) as subparagraph (C), and</text> </paragraph><paragraph id="IDEE8F47260323442E9B2089C3D61C0C65"><enum>(4)</enum><text>by inserting after subparagraph (A) the following new subparagraph:</text>
<quoted-block id="ID29C31FC48B6C4B25827167A04C8A5033" style="OLC">
<subparagraph id="IDCAC6C4FE108F458DA4CD2F9C3151020A"><enum>(B)</enum><header>Applicable amount</header><text>For purposes of this paragraph, the applicable amount is $1,000,000 increased (but not above $1,500,000) by $50,000 for each taxable year beginning after 2015.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="IDDE551AAFB4174AB0A01EDF1DF2FCAD85"><enum>(b)</enum><header>Effective Date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2015.</text> </subsection></section><section id="ID67142245280345CD9BAE47047150FA60"><enum>408.</enum><header>Expansion of interest netting</header> <subsection id="IDF1E131D1E5A04F63BEAA8A080A069847"><enum>(a)</enum><header>In General</header><text>Subsection (d) of <external-xref legal-doc="usc" parsable-cite="usc/26/6621">section 6621</external-xref> is amended by adding at the end the following new sentence: <quote>Solely for purposes of the preceding sentence, section 6611(e) shall not apply.</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDFA7B0D4A9A8F43E5828457C8773A215A"><enum>(b)</enum><header>Effective Date</header><text>The amendment made by this section shall apply to interest accrued after December 31, 2015.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="id62C0067A506E42A582E38637D07E8C35"><enum>409.</enum><header display-inline="yes-display-inline">Clarification of application of Federal tax deposit penalty</header><text display-inline="no-display-inline">Nothing in <external-xref legal-doc="usc" parsable-cite="usc/26/6656">section 6656</external-xref> of the Internal Revenue Code of 1986 shall be construed to permit the percentage specified in subsection (b)(1)(A)(iii) thereof to apply other than in a case where the failure is for more than 15 days.</text>
</section><enum>V</enum><header>The right to be informed</header>
<section id="ID91D0D8EC508949C4BD953DB1BEBC0FE7"><enum>501.</enum><header>Collection activities with respect to joint return disclosable to either spouse based on oral
request</header>
<subsection id="ID8C7B4F79370B4A7BBDCDC100688BD5E8"><enum>(a)</enum><header>In General</header><text>Paragraph (8) of <external-xref legal-doc="usc" parsable-cite="usc/26/6103">section 6103(e)</external-xref> is amended by striking <quote>in writing</quote> the first place it appears.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="id1CB971498A0744528F0E7EE57540857F"><enum>(b)</enum><header>Effective Date</header><text>The amendment made by this section shall apply to requests made after the date of the enactment of this Act.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="idB3096EAB3033444D8358CA09D205381F" section-type="subsequent-section"><enum>502.</enum><header display-inline="yes-display-inline">Disclosure of taxpayer identity for tax refund purposes</header><text display-inline="no-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/6103">Section 6103(m)(1)</external-xref> is amended by striking <quote>taxpayer identity information to the press and other media</quote> and by inserting <quote>a person’s name and the city and State of the person’s mailing address to the press, other media, and through any other means of mass communication,</quote>.</text>
</section><section id="id62CEAC688D9943BDAEF03115BE90C6F9"><enum>503.</enum><header>Release of information regarding the status of certain investigations</header>
<subsection id="idC09DD53FA24642FFA78160D70F571BC3"><enum>(a)</enum><header>In general</header><text>Subsection (e) of <external-xref legal-doc="usc" parsable-cite="usc/26/6103">section 6103</external-xref> is amended by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="id71ECD1B28BC54403A08EB53DADB5E1A7" style="OLC"> <paragraph id="id2C560C0483D8486FA297EF40D3F6F9B0"><enum>(11)</enum><header>Disclosure to certain relevant persons of information regarding status of certain investigations</header> <subparagraph id="id05BBC07216B34D8881332CFD483A2A53"><enum>(A)</enum><header>Information upon request</header><text>With respect to any investigation conducted by the officers and employees of the Treasury Inspector General for Tax Administration which relates to possible violations of the internal revenue laws or related statutes, the Secretary and the Attorney General may, upon written request by any relevant person, disclose to such person (or such person's designee)—</text>
<clause id="id440DD854B6D4403395769D91CBC2F306"><enum>(i)</enum><text>whether there is or has been such an investigation with respect to which such person is a relevant person, and</text>
</clause><clause id="idEBA0613281804234B6986B97265DED65"><enum>(ii)</enum><text>if there is or has been such an investigation—</text> <subclause id="id1DC5F8D71D6542A8A3B44C37846E82F7"><enum>(I)</enum><text>whether such investigation is on-going or has been completed, and</text>
</subclause><subclause id="idE2B1A79D03014C5F90F1FCC861087391"><enum>(II)</enum><text>if such investigation has been completed, the conclusions of such investigation, including whether there was a referral to administrative authorities or for criminal prosecution, and the contact information of the person handling the referred matter.</text>
</subclause></clause></subparagraph><subparagraph id="idECD36DE99C134BE7916AE36D09DCBFC6"><enum>(B)</enum><header>Notification upon conclusion</header><text>Not later than 30 days after the completion of any investigation—</text> <clause id="id0D9150AA6DEE470B90A949BD729DEB77"><enum>(i)</enum><text>which is conducted by the officers and employees of the Treasury Inspector General for Tax Administration, and</text>
</clause><clause id="id6247369F98014EC5A793FCF260FB1F05"><enum>(ii)</enum><text>the results of which indicate that—</text> <subclause id="id1A21654784734FB99FFAE3918CEC8115"><enum>(I)</enum><text>there is substantial evidence that there has been a violation of the internal revenue laws or related statutes, and</text>
</subclause><subclause id="idBDE732AAD5274AC1ABC8251B9C5DD999"><enum>(II)</enum><text>such violation involves one or more relevant persons,</text> </subclause></clause><continuation-text continuation-text-level="subparagraph">the Secretary shall disclose to all such relevant persons (or designees) the conclusions of the investigation, including whether there was a referral to administrative authorities or for criminal prosecution, and the contact information of the person handling the referred matter.</continuation-text></subparagraph><subparagraph id="id75F852BF0AEB4994A8798570CBFD8856"><enum>(C)</enum><header>Relevant person</header><text>For purposes of this paragraph, the term <term>relevant person</term> means, with respect to any investigation—</text>
<clause id="id785DF1425E9F4249B3E1BF5E12714B0B"><enum>(i)</enum><text>any complainant who provided information to the Treasury Inspector General for Tax Administration related to the investigation, and</text>
</clause><clause id="id88AA8AEE05064C909DFCE18831CF9665"><enum>(ii)</enum><text>any taxpayer who is directly connected with the matter being investigated.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="id1D7EECB0F4CF495EAD511D74080762B6"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall take effect on the date of the enactment of this Act.</text>
</subsection></section><section id="H799C9C9D7CAA4F35B7E017C60DAFB7EF"><enum>504.</enum><header>Mandatory electronic filing for annual returns of exempt organizations</header>
<subsection id="H46D9B14E87F04400A74108592229E8BD"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/6033">Section 6033</external-xref> is amended by redesignating subsection (n) as subsection (o) and by inserting after subsection (m) the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H657AD2DB39B3442C975F5887A2C9F844" style="OLC">
<subsection id="HD568B47C0EB24592B9D9953F66B2E019"><enum>(n)</enum><header>Mandatory electronic filing</header><text display-inline="yes-display-inline">Any organization required to file a return under this section shall file such return in electronic form.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H7CF8C165B5EC4FF098471106BAE94850"><enum>(b)</enum><header>Inspection of electronically filed annual returns</header><text>Subsection (b) of <external-xref legal-doc="usc" parsable-cite="usc/26/6104">section 6104</external-xref> is amended by adding at the end the following: <quote>Any annual return required to be filed electronically under section 6033(n) shall be made available by the Secretary to the public in machine readable format as soon as practicable.</quote>.</text>
</subsection><subsection id="H40E3BA87B82B4E7083977C376AE51C82"><enum>(c)</enum><header>Effective date</header>
<paragraph id="H84ED1C557B064411B63698DA8125C00E"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph id="HF624E85B5DA144F6AB17F571F26AB5E8"><enum>(2)</enum><header>Transitional relief</header>
<subparagraph id="HEB45243A10D04EA3AEE5EE92082FA563"><enum>(A)</enum><header>Small organizations</header>
<clause id="H37B75A23845D48668D4940FC19A5EC7C"><enum>(i)</enum><header>In general</header><text>In the case of any small organizations, or any other organizations for which the Secretary determines the application of the amendments made by subsection (a) would cause undue burden without a delay, the Secretary may delay the application of such amendments, but not later than taxable years beginning 2 years after the date of the enactment of this Act.</text>
</clause><clause id="H6E41B682D71A4E2C9B049D55D6AE883E"><enum>(ii)</enum><header>Small organization</header><text>For purposes of clause (i), the term <quote>small organization</quote> means any organization—</text> <subclause id="H50B777FDBE0344C79ADB2FF6BD0A68B2"><enum>(I)</enum><text>the gross receipts of which for the taxable year are less than $200,000, and</text>
</subclause><subclause id="H75944E95AF6F4745BF9D7FEB7D1DCDA3"><enum>(II)</enum><text>the aggregate gross assets of which at the end of the taxable year are less than $500,000.</text> </subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idF746ADEFCED74E8A8054550ECA8E97E3"><enum>(B)</enum><header>Organizations filing form <enum-in-header>990–T</enum-in-header></header><text display-inline="yes-display-inline">In the case of any organization described in <external-xref legal-doc="usc" parsable-cite="usc/26/511">section 511(a)(2)</external-xref> 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 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 not later than taxable years beginning 2 years after the date of the enactment of this Act.</text>
</subparagraph></paragraph></subsection></section><enum>VI</enum><header>The right to qualify service</header>
<section id="H5AAE0D1A566F441D9FC05183730F295F"><enum>601.</enum><header>Free electronic filing</header>
<subsection id="H57749C84C9264A95A7358125C06EE398"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary of the Treasury (or the Secretary's delegate) shall, in cooperation with the private sector technology industry, maintain a program that provides free individual income tax preparation and electronic filing services to low-income taxpayers and elderly taxpayers.</text>
</subsection><subsection id="HCDE098485D6F48A1A2C883629EEFC4C4"><enum>(b)</enum><header>Requirements of program</header><text>The Secretary shall by regulation or other guidance prescribe with respect to the program—</text> <paragraph id="H614D62E21EA94B06ADAC34B464110E89"><enum>(1)</enum><text>the qualifications, selection process, and contract term for businesses participating in the program,</text>
</paragraph><paragraph id="H94F5780B1A88401299E1F6FB95E1F6F8"><enum>(2)</enum><text>a process for periodic review of businesses participating in the program,</text> </paragraph><paragraph id="HDBC7846B2FA744F7B5F158F9CABD4624"><enum>(3)</enum><text>procedures for terminating business participation in the program for failure to comply with any program requirements, and</text>
</paragraph><paragraph id="HCD18A1879F1949E09BB3B25DDC6BFE82"><enum>(4)</enum><text>such other procedures as the Secretary determines are necessary or appropriate to carry out the purposes of the program.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H6C965F08651E447CB5AFDFFFB189ED9A"><enum>(c)</enum><header>Free File program</header><text display-inline="yes-display-inline">The Internal Revenue Service Free File program, as set forth in the notice published in the Federal Register on November 4, 2002 (67 Fed. Reg. 67247), shall be treated as meeting the requirements of subsection (a).</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id2F548C55E1AC414C98094CCA5F7A5607"><enum>602.</enum><header>Access to appeals</header><text display-inline="no-display-inline">Subsection (b) of section 3465 of the Internal Revenue Service Restructuring and Reform Act of 1998 is amended by striking <quote>an appeals officer is regularly available within each State</quote> and inserting <quote>there is at least one appeals officer and one settlement officer located and permanently available in each State, the District of Columbia, and Puerto Rico</quote>.</text>
</section>