[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1145 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 1145

     To amend the Internal Revenue Code of 1986 to provide certain 
                     additional taxpayers' rights.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 25, 1993

  Mr. Hefley introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
     To amend the Internal Revenue Code of 1986 to provide certain 
                     additional taxpayers' rights.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. CIVIL DAMAGES FOR CERTAIN ACTIONS OF THE INTERNAL REVENUE 
              SERVICE.

    (a) Damages Available With Respect to Determination of Tax.--
            (1) In general.--Section 7433(a) of the Internal Revenue 
        Code of 1986 is amended by inserting ``determination or'' 
        before ``collection''.
            (2) Conforming amendments.--
                    (A) The heading for section 7433 of such Code is 
                amended by inserting ``DETERMINATION OR'' before 
                ``COLLECTION''.
                    (B) The item relating to section 7433 in the table 
                of sections for subchapter B of chapter 76 of such Code 
                is amended by inserting ``determination or'' before 
                ``collection''.
    (b) Damages Available for Careless Actions.--
            (1) In general.--Section 7433(a) of such Code is amended by 
        inserting ``, carelessly,'' after ``recklessly''.
            (2) Conforming amendment.--Paragraph (1) of section 7433(b) 
        of such Code is amended by inserting ``, careless,'' after 
        ``reckless''.
    (c) Effective Date.--The amendments made by this section shall 
apply to actions taken by officers or employees of the Internal Revenue 
Service after December 31, 1993.

SEC. 2. DEFINITION OF PREVAILING PARTY FOR AWARDING OF ATTORNEYS' FEES 
              IN TAX CASES.

    (a) In General.--Section 7430(c)(4)(A) of the Internal Revenue Code 
of 1986 (defining prevailing party) is amended by striking clause (i) 
and by redesignating clauses (ii) and (iii) as clauses (i) and (ii), 
respectively.
    (b) Conforming Amendment.--Section 7430(c) of such Code is amended 
by striking paragraph (7).
    (c) Effective Date.--The amendments made by this section shall 
apply to any proceeding commenced after December 31, 1993.

SEC. 3. RATE OF INTEREST TO BE SAME FOR UNDERPAYMENTS AND OVERPAYMENTS 
              OF TAX.

    (a) In General.--Subparagraph (B) of section 6621(a)(1) of the 
Internal Revenue Code of 1986 (defining overpayment rate) is amended by 
striking ``2 percentage points'' and inserting ``3 percentage points''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply for purposes of determining interest allocable to periods after 
December 31, 1993.

                                 <all>