Internal Revenue Service Restructuring and Reform Act of 1998
Public Law 105–206, as amended
Internal Revenue Service Restructuring and Reform Act of 1998
206
116–25
Statute Compilation
United States House of Representatives
Office of the Legislative Counsel
text/xml
EN
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Internal Revenue Service Restructuring and Reform Act of 1998
14560
105
1998-07-22
Internal Revenue Service Restructuring and Reform Act of 1998
[(Title II of Public Law 105–206, Approved July 22, 1998)]
[As Amended Through P.L. 116–25, Enacted July 01, 2019]
[Currency: This publication is a compilation of the text of title II of Public Law 105–206. It was last amended by the public law listed in the As Amended Through note above and below at the bottom of each page of the pdf version and reflects current law through the date of the enactment of the public law listed at https://www.govinfo.gov/app/collection/comps/]
[Note: While this publication does not represent an official version of any Federal statute, substantial efforts have been made to ensure the accuracy of its contents. The official version of Federal law is found in the United States Statutes at Large and in the United States Code. The legal effect to be given to the Statutes at Large and the United States Code is established by statute (1 U.S.C. 112, 204).]
AN ACTTo amend the Internal Revenue Code of 1986 to restructure and reform the Internal Revenue Service, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. [[26 U.S.C. 1 note]] SHORT TITLE; AMENDMENT OF 1986 CODE; WAIVER OF ESTIMATED TAX PENALTIES; TABLE OF CONTENTS.
(a) Short Title.—This Act may be cited as the “Internal Revenue Service Restructuring and Reform Act of 1998” .
(b) Amendment of 1986 Code.—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) [[26 U.S.C. 6654 note]] Waiver of Estimated Tax Penalties.—No addition to tax shall be made under section 6654 or 6655 of the Internal Revenue Code of 1986 with respect to any underpayment of an installment required to be paid on or before the 30th day after the date of the enactment of this Act to the extent such underpayment was created or increased by any provision of this Act.
(d) Table of Contents.—The table of contents for this Act is as follows:
* * * * * * *
<num style="-uslm-dtd:enum" value="II">TITLE II—</num><heading style="-uslm-dtd:header">ELECTRONIC FILING </heading>
<section style="-uslm-dtd:section" identifier="/us/sComp/105/206/tII/s2001" styleType="OLC">
<num style="-uslm-dtd:enum" value="2001">SEC. 2001. </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t26/s6011">26 U.S.C. 6011 note</ref><b>]</b> </editorialNote><heading style="-uslm-dtd:header">ELECTRONIC FILING OF TAX AND INFORMATION RETURNS. </heading>
<subsection style="-uslm-dtd:subsection" identifier="/us/sComp/105/206/tII/s2001/a" styleType="OLC">
<num style="-uslm-dtd:enum" value="a">(a) </num><heading style="-uslm-dtd:header">In General.—</heading><chapeau style="-uslm-dtd:text">It is the policy of Congress that—</chapeau>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/105/206/tII/s2001/a/1" styleType="OLC">
<num style="-uslm-dtd:enum" value="1">(1) </num><content style="-uslm-dtd:text">paperless filing should be the preferred and most convenient means of filing Federal tax and information returns;</content>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/105/206/tII/s2001/a/2" styleType="OLC">
<num style="-uslm-dtd:enum" value="2">(2) </num><content style="-uslm-dtd:text">it should be the goal of the Internal Revenue Service to have at least 80 percent of all such returns filed electronically by the year 2007; and</content>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/105/206/tII/s2001/a/3" styleType="OLC">
<num style="-uslm-dtd:enum" value="3">(3) </num><content style="-uslm-dtd:text">the Internal Revenue Service should cooperate with and encourage the private sector by encouraging competition to increase electronic filing of such returns.</content>
</paragraph>
</subsection>
<subsection style="-uslm-dtd:subsection" identifier="/us/sComp/105/206/tII/s2001/b" styleType="OLC">
<num style="-uslm-dtd:enum" value="b">(b) </num><heading style="-uslm-dtd:header">Strategic Plan.—</heading>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/105/206/tII/s2001/b/1" styleType="OLC">
<num style="-uslm-dtd:enum" value="1">(1) </num><heading style="-uslm-dtd:header">In general.—</heading><content style="-uslm-dtd:text">Not later than 180 days after the date of the enactment of this Act, the Secretary of the Treasury or the Secretary’s delegate (hereafter in this section referred to as the “Secretary”) shall establish a plan to eliminate barriers, provide incentives, and use competitive market forces to increase electronic filing gradually over the next 10 years while maintaining processing times for paper returns at 40 days. To the extent practicable, such plan shall provide that all returns prepared electronically for taxable years beginning after 2001 shall be filed electronically.</content>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/105/206/tII/s2001/b/2" styleType="OLC">
<num style="-uslm-dtd:enum" value="2">(2) </num><heading style="-uslm-dtd:header">Electronic commerce advisory group.—</heading><content style="-uslm-dtd:text">To ensure that the Secretary receives input from the private sector in the development and implementation of the plan required by paragraph (1), the Secretary shall convene an electronic commerce advisory group to include representatives from the small business community and from the tax practitioner, preparer, and computerized tax processor communities and other representatives from the electronic filing industry.</content>
</paragraph>
</subsection>
<subsection style="-uslm-dtd:subsection" identifier="/us/sComp/105/206/tII/s2001/c" styleType="OLC">
<num style="-uslm-dtd:enum" value="c">(c) </num><heading style="-uslm-dtd:header">Promotion of Electronic Filing and Incentives.—</heading><content style="-uslm-dtd:text">[Omitted—Amends other Act]</content>
</subsection>
<subsection style="-uslm-dtd:subsection" identifier="/us/sComp/105/206/tII/s2001/d" styleType="OLC">
<num style="-uslm-dtd:enum" value="d">(d) </num><heading style="-uslm-dtd:header"> Annual Reports.—</heading><chapeau style="-uslm-dtd:text">Not later than June 30 of each calendar year after 1998, the Chairperson of the Internal Revenue Service Oversight Board, the Secretary of the Treasury, and the Chairperson of the electronic commerce advisory group established under subsection (b)(2) shall report to the Committees on Ways and Means, Appropriations, Government Reform and Oversight, and Small Business of the House of Representatives and the Committees on Finance, Appropriations, Governmental Affairs, and Small Business of the Senate on—</chapeau>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/105/206/tII/s2001/d/1" styleType="OLC">
<num style="-uslm-dtd:enum" value="1">(1) </num><content style="-uslm-dtd:text">the progress of the Internal Revenue Service in meeting the goal of receiving electronically 80 percent of tax and information returns by 2007;</content>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/105/206/tII/s2001/d/2" styleType="OLC">
<num style="-uslm-dtd:enum" value="2">(2) </num><content style="-uslm-dtd:text">the status of the plan required by subsection (b);</content>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/105/206/tII/s2001/d/3" styleType="OLC">
<num style="-uslm-dtd:enum" value="3">(3) </num><content style="-uslm-dtd:text">the legislative changes necessary to assist the Internal Revenue Service in meeting such goal; and</content>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/105/206/tII/s2001/d/4" styleType="OLC">
<num style="-uslm-dtd:enum" value="4">(4) </num><content style="-uslm-dtd:text">the effects on small businesses and the self-employed of electronically filing tax and information returns.</content>
</paragraph>
</subsection>
</section>
<section style="-uslm-dtd:section" identifier="/us/sComp/105/206/tII/s2002" styleType="OLC">
<num style="-uslm-dtd:enum" value="2002">SEC. 2002. </num><heading style="-uslm-dtd:header">DUE DATE FOR CERTAIN INFORMATION RETURNS. </heading>
<subsection style="-uslm-dtd:subsection" identifier="/us/sComp/105/206/tII/s2002/a" styleType="OLC">
<num style="-uslm-dtd:enum" value="a">(a) </num><heading style="-uslm-dtd:header">Information Returns Filed Electronically.—</heading><content style="-uslm-dtd:text">[Omitted--Amends other Act]</content>
</subsection>
<subsection style="-uslm-dtd:subsection" identifier="/us/sComp/105/206/tII/s2002/b" styleType="OLC">
<num style="-uslm-dtd:enum" value="b">(b) </num><heading style="-uslm-dtd:header">Study Relating to Time For Providing Notice to Recipients. </heading>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/105/206/tII/s2002/b/1" styleType="OLC">
<num style="-uslm-dtd:enum" value="1">(1) </num><heading style="-uslm-dtd:header">In general.—</heading><content style="-uslm-dtd:text">The Secretary of the Treasury shall conduct a study evaluating the effect of extending the deadline for providing statements to persons with respect to whom information is required to be furnished under subparts B and C of part III of subchapter A of chapter 61 of the Internal Revenue Code of 1986 (other than section 6051 of such Code) from January 31 to February 15 of the year in which the return to which the statement relates is required to be filed.</content>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/105/206/tII/s2002/b/2" styleType="OLC">
<num style="-uslm-dtd:enum" value="2">(2) </num><heading style="-uslm-dtd:header">Report.—</heading><content style="-uslm-dtd:text">Not later than June 30, 1999, the Secretary of the Treasury shall submit a report on the study under paragraph (1) to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate.</content>
</paragraph>
</subsection>
<subsection style="-uslm-dtd:subsection" identifier="/us/sComp/105/206/tII/s2002/c" styleType="OLC">
<num style="-uslm-dtd:enum" value="c">(c) </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t26/s6071">26 U.S.C. 6071 note</ref><b>]</b> </editorialNote><heading style="-uslm-dtd:header">Effective Date.—</heading><content style="-uslm-dtd:text">The amendment made by subsection (a) shall apply to returns required to be filed after December 31, 1999.</content>
</subsection>
</section>
<section style="-uslm-dtd:section" identifier="/us/sComp/105/206/tII/s2003" styleType="OLC">
<num style="-uslm-dtd:enum" value="2003">SEC. 2003. </num><heading style="-uslm-dtd:header">PAPERLESS ELECTRONIC FILING. </heading>
<subsection style="-uslm-dtd:subsection" identifier="/us/sComp/105/206/tII/s2003/a" styleType="OLC">
<num style="-uslm-dtd:enum" value="a">(a) </num><content style="-uslm-dtd:text">[and (b) are omitted--Amends other Act]</content>
</subsection>
<subsection style="-uslm-dtd:subsection" identifier="/us/sComp/105/206/tII/s2003/c" styleType="OLC">
<num style="-uslm-dtd:enum" value="c">(c) </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t26/s6011">26 U.S.C. 6011 note</ref><b>]</b> </editorialNote><heading style="-uslm-dtd:header">Establishment of Procedures for Other Information.—</heading><content style="-uslm-dtd:text">In the case of taxable periods beginning after December 31, 1999, the Secretary of the Treasury or the Secretary’s delegate shall, to the extent practicable, establish procedures to accept, in electronic form, any other information, statements, elections, or schedules, from taxpayers filing returns electronically, so that such taxpayers will not be required to file any paper.</content>
</subsection>
<subsection style="-uslm-dtd:subsection" identifier="/us/sComp/105/206/tII/s2003/d" styleType="OLC">
<num style="-uslm-dtd:enum" value="d">(d) </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t26/s7805">26 U.S.C. 7805 note</ref><b>]</b> </editorialNote><heading style="-uslm-dtd:header">Internet Availability.—</heading><content style="-uslm-dtd:text">In the case of taxable periods beginning after December 31, 1998, the Secretary of the Treasury or the Secretary’s delegate shall establish procedures for all tax forms, instructions, and publications created in the most recent 5-year period to be made available electronically on the Internet in a searchable database at approximately the same time such records are available to the public in paper form. In addition, in the case of taxable periods beginning after December 31, 1998, the Secretary of the Treasury or the Secretary’s delegate shall, to the extent practicable, establish procedures for other taxpayer guidance to be made available electronically on the Internet in a searchable database at approximately the same time such guidance is available to the public in paper form.</content>
</subsection>
<subsection style="-uslm-dtd:subsection" identifier="/us/sComp/105/206/tII/s2003/e" styleType="OLC">
<num style="-uslm-dtd:enum" value="e">(e) </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t26/s6103">26 U.S.C. 6103 note</ref><b>]</b> </editorialNote><heading style="-uslm-dtd:header">Procedures for Authorizing Disclosure Electronically.—</heading><content style="-uslm-dtd:text">The Secretary shall establish procedures for any taxpayer to authorize, on an electronically filed return, the Secretary to disclose information under section 6103(c) of the Internal Revenue Code of 1986 to the preparer of the return.
</content>
</subsection>
<subsection style="-uslm-dtd:subsection" identifier="/us/sComp/105/206/tII/s2003/f" styleType="OLC">
<num style="-uslm-dtd:enum" value="f">(f) </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t26/s6061">26 U.S.C. 6061 note</ref><b>]</b> </editorialNote><heading style="-uslm-dtd:header">Effective Date.—</heading><content style="-uslm-dtd:text">The amendments made by this section shall take effect on the date of the enactment of this Act.</content>
</subsection><editorialNote style="-uslm-dtd:legis-comment"><b>[</b>Section 2004 was repealed by section 2401 of Public Law 116–25.<b>]</b> </editorialNote>
</section>
<section style="-uslm-dtd:section" identifier="/us/sComp/105/206/tII/s2005" styleType="OLC">
<num style="-uslm-dtd:enum" value="2005">SEC. 2005. </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t26/s6103">26 U.S.C. 6103 note</ref><b>]</b> </editorialNote><heading style="-uslm-dtd:header">ACCESS TO ACCOUNT INFORMATION. </heading>
<subsection style="-uslm-dtd:subsection" identifier="/us/sComp/105/206/tII/s2005/a" styleType="OLC">
<num style="-uslm-dtd:enum" value="a">(a) </num><heading style="-uslm-dtd:header">In General.—</heading><content style="-uslm-dtd:text">Not later than December 31, 2006, the Secretary of the Treasury or the Secretary’s delegate shall develop procedures under which a taxpayer filing returns electronically (and their designees under section 6103(c) of the Internal Revenue Code of 1986) would be able to review the taxpayer’s account electronically, but only if all necessary safeguards to ensure the privacy of such account information are in place.</content>
</subsection>
<subsection style="-uslm-dtd:subsection" identifier="/us/sComp/105/206/tII/s2005/b" styleType="OLC">
<num style="-uslm-dtd:enum" value="b">(b) </num><heading style="-uslm-dtd:header">Report.—</heading><content style="-uslm-dtd:text">Not later than December 31, 2003, the Secretary of the Treasury shall report on the progress the Secretary is making on the development of procedures under subsection (a) to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate.</content>
<elided style="-uslm-dtd:omitted-text">* * * * * * *</elided>
</subsection>
</section>