[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2406 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 2406

 To provide the Internal Revenue Service with increased authority and 
 resources to be used in reducing evasion of the diesel fuel taxes and 
                           other tax evasion.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 14, 1993

  Mr. Istook (for himself, Mr. Grandy, Mr. Barlow, Mr. Lightfoot, Mr. 
 Wolf, Mr. Wilson, Mr. Greenwood, Mr. McDade, Mr. Inhofe, Mr. Michel, 
Mr. Packard, and Mr. Bateman) introduced the following bill; which was 
              referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To provide the Internal Revenue Service with increased authority and 
 resources to be used in reducing evasion of the diesel fuel taxes and 
                           other tax evasion.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Diesel Fuel Tax Enforcement Act of 
1993''.

SEC. 2. SENSE OF THE CONGRESS AS TO INCREASED INTERNAL REVENUE SERVICE 
              FUNDING FOR CRIMINAL INVESTIGATIONS AND OTHER ENFORCEMENT 
              ACTIVITIES.

    (a) Findings.--The Congress hereby finds that--
            (1) there has been substantial evasion of the Federal 
        excise taxes on diesel fuel,
            (2) there is evidence that organized crime has become 
        involved in such evasion,
            (3) that such evasion undercuts the many small and medium 
        size businesses who comply with the diesel fuel taxes, and
            (4) providing the Internal Revenue Service with additional 
        funding for its criminal investigation and other enforcement 
        activities would--
                    (A) enable the Internal Revenue Service to be more 
                effective in its effort to reduce organized crime's 
                involvement in tax evasion and other criminal 
                activities such as money laundering, and
                    (B) result in increased revenues.
    (b) Sense of Congress.--It is the sense of the Congress that 
outlays for Internal Revenue Service criminal investigation and other 
enforcement activities should be increased and such increase shall be 
funded with offsetting spending reductions in other program areas.

SEC. 3. PERMANENT EXTENSION OF AUTHORITY FOR UNDERCOVER OPERATIONS.

    (a) Permanent Extension.--Notwithstanding the provisions of 
paragraph (3) of section 7601(c) of the Anti-Drug Abuse Act of 1988, 
the amendments made by such section 7601(c) shall apply to all periods 
after the date of the enactment of this Act.
    (b) Enhanced Oversight.--
            (1) Additional information required in reports to 
        congress.--Subparagraph (B) of section 7608(c)(4) of the 
        Internal Revenue Code of 1986 is amended--
                    (A) by striking ``preceding the period'' in clause 
                (ii),
                    (B) by striking ``and'' at the end of clause (ii), 
                and
                    (C) by striking clause (iii) and inserting the 
                following:
                            ``(iii) the number, by programs, of 
                        undercover investigative operations closed in 
                        the 1-year period for which such report is 
                        submitted, and
                            ``(iv) the following information with 
                        respect to each undercover investigative 
                        operation pending as of the end of the 1-year 
                        period for which such report is submitted or 
                        closed during such 1-year period--
                                    ``(I) the date the operation began 
                                and the date of the certification 
                                referred to in the last sentence of 
                                paragraph (1),
                                    ``(II) the total expenditures under 
                                the operation and the amount and use of 
                                the proceeds from the operation,
                                    ``(III) a description of the 
                                operation including the potential 
                                violation being investigated and 
                                whether the operation is being 
                                conducted under grand jury auspices; 
                                except that such a description shall 
                                not be required if the Secretary 
                                determines that to provide such 
                                description would jeopardize the 
                                operation or the life or safety of 
                                participants in the operation, and
                                    ``(IV) the results of the operation 
                                including the results of criminal 
                                proceedings.''
            (2) Audits required without regard to amounts involved.--
        Subparagraph (C) of section 7608(c)(5) of such Code is amended 
        to read as follows:
                    ``(C) Undercover investigative operation.--The term 
                `undercover investigative operation' means any 
                undercover investigative operation of the Service; 
                except that, for purposes of subparagraph (A) of 
                paragraph (4), such term only includes an operation 
                which is exempt from section 3302 or 9102 of title 31, 
                United States Code.''
            (3) Effective date.--The amendments made by this subsection 
        shall take effect on the date of the enactment of this Act.

SEC. 4. REPORT BY ATTORNEY GENERAL.

    Not later than the day 90 days after the date of the enactment of 
this Act, the Attorney General shall report to the Congress on--
            (1) the feasibility of additional Federal task forces 
        dealing with organized crime's involvement in diesel fuel tax 
        evasion, and
            (2) other steps that could be taken to reduce criminal 
        evasion of diesel fuel taxes.

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