[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3261 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 3261

  To amend the Internal Revenue Code of 1986 to provide that Internal 
  Revenue Service employees shall be personally liable for litigation 
costs resulting from arbitrary, capricious, or malicious acts, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 12, 1993

Mr. Traficant 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 that Internal 
  Revenue Service employees shall be personally liable for litigation 
costs resulting from arbitrary, capricious, or malicious acts, 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. INTERNAL REVENUE SERVICE EMPLOYEES PERSONALLY LIABLE IN 
              CERTAIN CASES.

    (a) General Rule.--Section 7430 of the Internal Revenue Code of 
1986 is amended by adding at the end thereof the following new 
subsection:
    ``(g) Personal Liability of Internal Revenue Service Employees in 
Certain Cases.--
            ``(1) In general.--In any proceeding in which the 
        prevailing party is awarded a judgment for reasonable 
        litigation costs under this section, the court may assess a 
        portion of such costs against any Internal Revenue Service 
        employee (and such employee shall not be reimbursed by the 
        United States for the costs so assessed) if the court 
        determines that such proceeding resulted from any arbitrary, 
        capricious, or malicious act of such employee.
            ``(2) Representation of employee.--Upon the request of any 
        Internal Revenue Service employee, such employee may be 
        represented by the United States in any proceeding with respect 
        to the issue of whether there is to be an assessment against 
        such employee under paragraph (1). If, in any case in which 
        such an employee is so represented by the United States, it is 
        finally determined that such employee is liable for an 
        assessment under paragraph (1), such employee shall also be 
        liable to repay the United States for the cost of its 
        representation under this paragraph.''
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply in the case of proceedings commenced after the date of the 
enactment of this Act.

SEC. 2. INCREASE IN LIMIT ON RECOVERY OF CIVIL DAMAGES FOR UNAUTHORIZED 
              COLLECTION ACTIONS.

    (a) General Rule.--Subsection (b) of section 7433 of such Code 
(relating to damages) is amended by striking ``$100,000'' and inserting 
``$1,000,000''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to actions by officers or employees of the Internal Revenue 
Service after the date of the enactment of this Act.

SEC. 3. BURDEN OF PROOF AS TO FRAUD.

    (a) General Rule.--Chapter 77 of the Internal Revenue Code of 1986 
(relating to miscellaneous provisions) is amended by adding at the end 
thereof the following new section:

``SEC. 7524. BURDEN OF PROOF WITH RESPECT TO FRAUD.

    ``In the case of any court proceeding, the burden of proof with 
respect to the issue of whether any person has been guilty of fraud 
with intent to evade tax shall be upon the Secretary.''
    (b) Clerical Amendment.--The table of sections for chapter 77 of 
such Code is amended by adding at the end thereof the following new 
item:

                              ``Sec. 7524. Burden of proof with respect 
                                        to fraud.''
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

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