115 S1793 IS: Taxpayer Bill of Rights Enhancement Act of 2017
U.S. Senate
2017-09-12
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 2017
.
(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—The right to privacy Sec. 101. Civil damages for unauthorized disclosure or inspection. Sec. 102. Compliance by contractors with confidentiality safeguards. TITLE II—The right to appeal in an independent forum and to challenge the Internal Revenue Service position and be heard Sec. 201. Increase in limitations on civil damages for certain unauthorized collection actions. Sec. 202. Extension of time limit for contesting IRS levy. TITLE III—The right to a fair and just tax system Sec. 301. Waiver of user fee for installment agreements using automated withdrawals. Sec. 302. Individuals held harmless on improper levy on retirement plans. Sec. 303. Office of Chief Counsel review of offers-in-compromise. Sec. 304. Increase in and expansion of individual estimated tax exception. Sec. 305. Modifications to computation of individual estimated tax. Sec. 306. Corporate estimated tax. Sec. 307. Increase in large corporation threshold for estimated tax payments. Sec. 308. Expansion of interest netting. Sec. 309. Clarification of application of Federal tax deposit penalty. TITLE IV—The right to be informed Sec. 401. Collection activities with respect to joint return disclosable to either spouse based on oral request. Sec. 402. Mandatory electronic filing for annual returns of exempt organizations. TITLE V—The right to quality service Sec. 501. Free electronic filing. Sec. 502. Access to appeals. <enum>I</enum><header>The right to privacy</header> <section commented="no" id="IDCC21F8093CE64DB3AAE3268B6DEAAFD7"><enum>101.</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 existence of a good faith but erroneous interpretation of section
6103, the burden of proof with respect to such issue shall be on the
person who made the inspection or disclosure, or in the case of a suit
pursuant to paragraph (a)(1), the United States.</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)(1)</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 id="ID10C1BADB0A4F47B883693471C5C8E64C"><enum>102.</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 2017 following the date of the enactment of this Act.</text>
</paragraph></subsection></section><enum>II</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>201.</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>202.</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><enum>III</enum><header>The right to a fair and just tax system</header>
<section id="ID6138E4FD65E0482088D90573D366AF7E"><enum>301.</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 commented="no" display-inline="no-display-inline" id="id56867ea9e8c84ac2aeec03256ae8c7a5" section-type="subsequent-section"><enum>302.</enum><header display-inline="yes-display-inline">Individuals held harmless on improper levy on retirement plans</header>
<subsection id="idB1A7328045DA4A08A8A07E88EBA2EBC3"><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="id761B224C4CB24AA78CACBA5EEE78C233" style="OLC">
<subsection id="id4CCDBD5BDA48492AA45C4943D0735153"><enum>(f)</enum><header>Individuals Held Harmless on Wrongful Levy, etc. on Retirement Plan</header>
<paragraph id="id59D6B483867849399A1A9D6EA73D97D1"><enum>(1)</enum><header>In general</header><text>If the Secretary determines that an individual's account or benefit under an eligible retirement plan (as defined in section 402(c)(8)(B)) 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—</text>
<subparagraph id="id47F9BADDC0644C8BB0681802A3E5C1F1"><enum>(A)</enum><text>the individual may contribute such property or an amount equal to the sum of—</text>
<clause id="id51CE54B981024C3AA7B5BFCC2586D3DD"><enum>(i)</enum><text>the amount of money so returned by the Secretary, and</text> </clause><clause id="id098982ED3E814F0A98E64E56CE77A13F"><enum>(ii)</enum><text>interest paid under subsection (c) on such amount of money,</text>
</clause><continuation-text continuation-text-level="subparagraph">into such eligible retirement plan if such contribution is permitted by the plan, or into an
individual retirement plan (other than an endowment contract) to which a
rollover
contribution of a distribution from such eligible retirement plan is
permitted, but only 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="id16571B32CB454922A0F58FA4845BBF4C"><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="id1309431070614CE7A4B244D7289B3157"><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 the return of such distribution shall be treated for purposes of this title as if such distribution and contribution were described in section 402(c), 402A(c)(3), 403(a)(4), 403(b)(8), 408(d)(3), 408A(d)(3), or 457(e)(16), whichever is applicable; except that—</text>
<subparagraph id="idE9CE8C28DFB846B88E99B66A814ECF4E"><enum>(A)</enum><text>the contribution shall be treated as having been made 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 the plan after the contribution and shall not be included in gross income, and</text>
</subparagraph><subparagraph id="idE419262D14CD48B48F84910628E00969"><enum>(B)</enum><text>such contribution shall not be taken into account under section 408(d)(3)(B).</text> </subparagraph></paragraph><paragraph id="idF34B20E71EE74953AD3D09A3D3B0AB49"><enum>(3)</enum><header>Refund, etc., of income tax on levy</header> <subparagraph id="id35B22A9669774EF5A79A2B8FE05ACD2C"><enum>(A)</enum><header>In general</header><text>If any amount is includible in gross income for a taxable year by reason of a distribution on account 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>
</subparagraph><subparagraph id="id16FA0D9715FD485890ADE50CC5C57B3A"><enum>(B)</enum><header>Exception</header><text>Subparagraph (A) shall not apply to a rollover contribution under this subsection which is made from an eligible retirement plan which is not a Roth IRA or a designated Roth account (within the meaning of section 402A) to a Roth IRA or a designated Roth account under an eligible retirement plan.</text>
</subparagraph></paragraph><paragraph id="idDD554E52B0EC410EADE02F7BE09AAEAF"><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="idC91CAAF84E7245E892826240F4D26027"><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="idBF434296E4AF409B99C091C8D952F813"><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, 2017.</text>
</subsection></section><section id="ID6AB3BF1CDF0C48AD8794129D72777790"><enum>303.</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 commented="no" id="ID4B3061A12826419CAD46D67FEC16517E"><enum>304.</enum><header>Increase in and expansion of individual estimated tax exception</header>
<subsection commented="no" id="id590C85B9217C45CBBBDA7F31CF2CB89D"><enum>(a)</enum><header>In general</header><text>Paragraph (1) of <external-xref legal-doc="usc" parsable-cite="usc/26/6654">section 6654(e)</external-xref> is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="id2DAB6D61DAC3439DA9BBECEF2BEF826D" style="OLC"> <paragraph id="id5309d556c42d4fe4be7e6573fb7db08c"><enum>(1)</enum><header>Where tax is small amount</header> <subparagraph id="id0C41DD29C083494DAEAE2EE423CB02C9"><enum>(A)</enum><header>In general</header><text>No addition to tax shall be imposed under subsection (a) for any taxable year if—</text>
<clause id="idD549536D751F47AFAA5532349833FA88"><enum>(i)</enum><text>the excess (if any) of the tax shown on the return for such taxable year (or, if no return is filed, the tax) over the sum of—</text>
<subclause id="id1084939383354291BEF704186F99240B"><enum>(I)</enum><text>the estimated tax paid for such taxable year, plus</text> </subclause><subclause id="idF901CEBBABAE4523B0572FBDC184747F"><enum>(II)</enum><text>credit allowable under section 31, is less than</text>
</subclause></clause><clause id="idF7A8EC904BD34BFF9CB2190FE680CE52"><enum>(ii)</enum><text>$2,000.</text> </clause></subparagraph><subparagraph id="idE651B4C7182746DFB57EE3C36283AE72"><enum>(B)</enum><header>Exception</header> <clause id="idF058A2C13B114C56BA8F38B18883C0F8"><enum>(i)</enum><header>In general</header><text>No amount of estimated tax paid for a taxable year shall be taken into account under subparagraph (A)(i)(I) after the first due date (as determined under subsection (c)(2)) for which the individual's required installment was greater than zero and more than 10 percent of the required installment was not paid by such date.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id216D462FB097459D9A5DCB3F90806BDE"><enum>(ii)</enum><header>Order of crediting payments</header><text>In determining whether a payment was made for purposes of clause (i), a payment of estimated tax shall be credited against unpaid required installments in the order in which such installments are required to be paid.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idB9976F64296E46939BBC5D64C4ED4461"><enum>(b)</enum><header>Effective Date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2017.</text> </subsection></section><section commented="no" id="id78A25B7344A64B77ADDBBD235608B4E9"><enum>305.</enum><header>Modifications to computation of individual estimated tax</header> <subsection commented="no" id="IDC42B0411AC084EEDA9A8A26A3886647C"><enum>(a)</enum><header>In general</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 commented="no" id="ID97914C1C3DDE4A868DBF2F2F71635EC0"><enum>(a)</enum><header>Addition to the Tax</header>
<paragraph commented="no" 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 commented="no" 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 commented="no" id="id76F6570D656E49329F13DD1DA0FE5307"><enum>(A)</enum><text>the underpayment rate established under subsection (b)(2) for such day, multiplied by</text>
</subparagraph><subparagraph commented="no" id="id57000EAA195D42128533A303A932AB80"><enum>(B)</enum><text>the amount of the underpayment for such day.</text> </subparagraph></paragraph></subsection><subsection commented="no" id="IDD9213B1E90C240F8B395291EF9F189A2"><enum>(b)</enum><header>Amount of underpayment; underpayment rate</header><text>For purposes of subsection (a)—</text>
<paragraph commented="no" 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 commented="no" 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 commented="no" 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 commented="no" id="IDE47C6787CBEE45289279CE6247D79A9F"><enum>(2)</enum><header>Determination of underpayment rate</header> <subparagraph commented="no" 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 commented="no" 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 commented="no" 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 commented="no" 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>(b)</enum><header>Effective Date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2017.</text> </subsection></section><section commented="no" id="ID9C31E9F15D41458B900F64D436F11D90"><enum>306.</enum><header>Corporate estimated tax</header> <subsection commented="no" 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>$2,000</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, 2017.</text> </subsection></section><section commented="no" id="ID182BE4679BD94D5AB4850E43E5B8BF0C"><enum>307.</enum><header>Increase in large corporation threshold for estimated tax payments</header> <subsection commented="no" 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 commented="no" id="IDFFBFA4C4CB414F2090B9F4D759B85A31"><enum>(1)</enum><text>by striking <quote>$1,000,000</quote> in subparagraph (A) and inserting <quote>$1,500,000</quote>,</text> </paragraph><paragraph commented="no" 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 amount in effect for the taxable year under subparagraph (A)</quote>, and</text>
</paragraph><paragraph commented="no" id="ID3E4D57EDD2474CD3B320DFCB15F56B01"><enum>(3)</enum><text>by inserting after subparagraph (B) the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="id8d9ea52a2d5247b58716015a10ca7f75" style="OLC"> <subparagraph id="id6b1f546ff64e40eb9592e1e82989cb41"><enum>(C)</enum><header>Inflation adjustment</header> <clause id="ide6c26c31e65f4030a370ac76a4a2438f"><enum>(i)</enum><header>In general</header><text>In the case of any taxable year beginning in a calendar year after 2018, the $1,500,000 amount in subparagraph (A) shall be increased by an amount equal to—</text>
<subclause id="id149d899960744b0ba652d87a8c625ce7"><enum>(I)</enum><text>such dollar amount, multiplied by</text> </subclause><subclause id="id3a0d8db4a9684b51a1154e065c6dff20"><enum>(II)</enum><text>the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting <quote>calendar year 2017</quote> for <quote>calendar year 1992</quote> in subparagraph (B) thereof.</text>
</subclause></clause><clause id="id1134891e06e9461aa5f8c710b565c6cc"><enum>(ii)</enum><header>Rounding</header><text>If any dollar amount, after being increased under paragraph (1), is not a multiple of $1,000, such dollar amount shall be rounded to the next lowest multiple of $1,000.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" 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, 2017.</text> </subsection></section><section id="ID67142245280345CD9BAE47047150FA60"><enum>308.</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, 2017.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="id62C0067A506E42A582E38637D07E8C35"><enum>309.</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>IV</enum><header>The right to be informed</header>
<section id="ID91D0D8EC508949C4BD953DB1BEBC0FE7"><enum>401.</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 id="H799C9C9D7CAA4F35B7E017C60DAFB7EF"><enum>402.</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.</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>V</enum><header>The right to quality service</header>
<section id="H5AAE0D1A566F441D9FC05183730F295F"><enum>501.</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>502.</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>