[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2450 Introduced in House (IH)]

  1st Session
                                H. R. 2450

To amend the Internal Revenue Code of 1986 to place the burden of proof 
on the Secretary of the Treasury in civil cases and on the taxpayer in 
  administrative proceedings, to require 30 days notice and judicial 
 consent before lien or seizure, to increase the limit on recovery of 
  civil damages for unauthorized collection actions and exclude such 
              damages from income, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 29, 1995

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 place the burden of proof 
on the Secretary of the Treasury in civil cases and on the taxpayer in 
  administrative proceedings, to require 30 days notice and judicial 
 consent before lien or seizure, to increase the limit on recovery of 
  civil damages for unauthorized collection actions and exclude such 
              damages from income, 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. BURDEN OF PROOF.

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

``SEC. 7524. BURDEN OF PROOF.

    ``(a) Administrative Proceedings.--Notwithstanding any other 
provision of this title, in the case of any administrative proceeding 
under this title, the burden of proof with respect to all issues shall 
be upon the taxpayer.
    ``(b) Court Proceedings.--Notwithstanding any other provision of 
this title, in the case of any court proceeding under this title, the 
burden of proof with respect to all issues 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 the following new item:

                              ``Sec. 7524. Burden of proof.''
    (c) Effective Date.--The amendments made by this section shall 
apply to administrative and court proceedings filed on or after the 
date of the enactment of this Act.

SEC. 2. REQUIREMENT OF 30 DAYS NOTICE AND JUDICIAL CONSENT BEFORE LIEN 
              OR SEIZURE.

    (a) Lien.--
            (1) 30-day notice requirement.--Section 6322 of such Code 
        is amended by striking ``at the time the assessment is made'' 
        and inserting ``on the date occurring 30 days after notice of 
        the assessment is provided to the taxpayer''.
            (2) Judicial consent.--
                    (A) In general.--Subchapter C of chapter 64 of such 
                Code is amended by redesignating section 6327 as 
                section 6328 and by inserting after section 6326 the 
                following new section:

``SEC. 6327. JUDICIAL CONSENT REQUIRED.

    ``Notwithstanding any other provision of law, no lien may arise 
under this subchapter without judicial consent.''
                    (B) Clerical amendment.--The table of sections for 
                subchapter C of chapter 64 of such Code is amended by 
                striking the item relating to section 6327 and 
                inserting the following new items:

                              ``Sec. 6327. Judicial consent required.
                              ``Sec. 6328. Cross references.''
    (b) Seizure.--
            (1) 30-day notice requirement.--Subsection (a) of section 
        6331 of such Code is amended--
                    (A) in the first sentence, by striking ``10 days'' 
                and inserting ``30 days'', and
                    (B) in the last sentence, by striking ``10-day 
                period'' and inserting ``30-day period''.
            (2) Judicial consent.--Subchapter D of chapter 64 of such 
        Code is amended by redesignating section 6344 as section 6345 
        and by inserting after section 6343 the following new section:

``SEC. 6344. JUDICIAL CONSENT REQUIRED.

    ``Notwithstanding any other provision of law, the Secretary may not 
collect any tax (or other sum) under this subchapter by levy without 
judicial consent.''
                    (B) Clerical amendment.--The table of sections for 
                subchapter C of chapter 64 of such Code is amended by 
                striking the item relating to section 6327 and 
                inserting the following new items:

                              ``Sec. 6344. Judicial consent required.
                              ``Sec. 6345. Cross references.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxes due for taxable years beginning after the date of the 
enactment of this Act.

SEC. 3. INCREASE IN LIMIT ON RECOVERY OF CIVIL DAMAGES FOR UNAUTHORIZED 
              COLLECTION ACTIONS; EXCLUSION OF SUCH DAMAGES FROM 
              INCOME.

    (a) Increase in Limit.--Subsection (b) of section 7433 of the 
Internal Revenue Code of 1986 (relating to damages) is amended by 
striking ``$100,000'' and inserting ``$1,000,000''.
    (b) Exclusion From Income.--Section 7433 of such Code is amended by 
adding at the end the following new subsection:
    ``(e) Exclusion of Damages From Income.--Damages awarded under this 
section shall be excluded from gross income under this title.''
    (c) Effective Date.--The amendments made by this section shall 
apply to actions by officers or employees of the Internal Revenue 
Service after the date of the enactment of this Act.

SEC. 4. REPORT ON MEANS TO OFFSET REVENUE CONSEQUENCES REGARDING BURDEN 
              OF PROOF.

    The Comptroller General of the United States shall conduct a study 
of possible means to offset any revenue losses resulting from section 
7524(b) of the Internal Revenue Code of 1986 (as added by section 1). 
The Comptroller General shall submit to the Congress, not later than 1 
year after the date of the enactment of this Act, a report detailing 
the results of such study.
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