[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3086 Introduced in House (IH)]







104th CONGRESS
  2d Session
                                H. R. 3086

To permit the Secretary of the Treasury to designate qualified delivery 
services, in addition to the United States Postal Service, for purposes 
  of timely filing of tax documents with the Internal Revenue Service.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 14, 1996

 Mr. Cox of California (for himself, Mrs. Johnson of Connecticut, Mr. 
   Herger, Ms. Lofgren, Mr. Traficant, Mr. Bryant of Tennessee, Mr. 
 Rohrabacher, Mr. Crane, Mr. Radanovich, Mr. Hostettler, Mr. Goss, Mr. 
 Smith of Texas, and Mrs. Myrick) introduced the following bill; which 
            was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To permit the Secretary of the Treasury to designate qualified delivery 
services, in addition to the United States Postal Service, for purposes 
  of timely filing of tax documents with the Internal Revenue Service.

    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 ``Fast and Efficient Tax Filing Act''.

SEC. 2. CONGRESSIONAL FINDINGS.

    The Congress finds the following:
            (1) The Internal Revenue Code of 1986 currently provides 
        that the postmark on a tax document is deemed to be its 
        delivery date (known as the ``timely-mailing-as-timely-filing'' 
        rule).
            (2) A recent decision by the United States Court of Appeals 
        has held that in order for a taxpayer to rely on this 
        provision, he or she is required to use the United States 
        Postal Service. As a result, even if a taxpayer uses an 
        overnight delivery service that guarantees earlier receipt by 
        the Internal Revenue Service than first class mail, his or her 
        tax documents are considered officially late.
            (3) It is in the best interests of the Internal Revenue 
        Service that tax documents, including payments of tax 
        liabilities, be delivered as promptly as possible.
            (4) Several major private delivery services in the United 
        States are at least as timely and reliable on a regular basis 
        as the United States Postal Service and are widely used for 
        vital document delivery in virtually all other facets of our 
        Nation's economic life.
            (5) It is inequitable that a taxpayer should be assessed 
        penalties and interest even though his return arrives at the 
        Internal Revenue Service prior to that of another taxpayer who 
        is not penalized, and even though both taxpayers responsibly 
        sent their returns at the same time.
            (6) In its recent interpretation of the ``timely-mailing-
        as-timely-filing'' rule, the United States Court of Appeals for 
        the 9th Circuit stated that there is ``a legitimate policy 
        rationale for extending the rule to private delivery 
        services,'' but stated further that ``it is for Congress, not 
        the courts, to make such a change.''
            (7) Existing law should be changed to permit the Secretary 
        of the Treasury to designate qualified delivery services in 
        addition to the United States Postal Service for purposes of 
        the ``timely-mailing-as-timely-filing'' rule, thereby 
        increasing the efficiency of the Internal Revenue Service and 
        making it easier for United States taxpayers to file their tax 
        returns on time.

SEC. 3. USE OF PRIVATE DELIVERY SERVICES FOR TIMELY-MAILING-AS-TIMELY-
              FILING RULE.

    Section 7502 of the Internal Revenue Code of 1986 (relating to 
timely mailing treated as timely filing and paying) is amended by 
adding at the end the following new subsection:
    ``(f) Treatment of Private Delivery Services.--
            ``(1) In general.--Any reference in this section to the 
        United States mail shall be treated as including a reference to 
        any designated delivery service, and any reference in this 
        section to a postmark by the United States Postal Service shall 
        be treated as including a reference to any date recorded or 
        marked as described in paragraph (2)(C).
            ``(2) Designated delivery service.--For purposes of 
        paragraph (1), the term `designated delivery service' means any 
        delivery service provided by a trade or business if such 
        service is designated by the Secretary for purposes of this 
        section. The Secretary may designate a delivery service under 
        the preceding sentence only if the Secretary determines that 
        such service--
                    ``(A) is available to the public,
                    ``(B) is at least as timely and reliable on a 
                regular basis as the United States mail, and
                    ``(C) records electronically to its data base, kept 
                in the regular course of its business, or marks on the 
                cover in which any item referred to in this section is 
                to be delivered, the date on which such item was given 
                to such trade or business for delivery.
            ``(3) Equivalents of registered and certified mail.--The 
        Secretary may provide a rule similar to the rule of paragraph 
        (1) with respect to any service provided by a designated 
        delivery service which is substantially equivalent to United 
        States registered or certified mail.''

SEC. 4. USE OF PRIVATE DELIVERY SERVICES.

    (a) In General.--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. USE OF PRIVATE DELIVERY SERVICES.

    ``(a) In General.--Any reference in this title to the mailing of 
any notice, request, or other document shall be treated as including a 
reference to delivery by any designated delivery service.
    ``(b) Designated delivery service.--For purposes of subsection (a), 
the term `designated delivery service' means a delivery service 
designated under paragraph (2) of section 7502(f).
    ``(c) Applicability to registered and certified mail.--Subsection 
(a) shall apply with respect to United States registered or certified 
mail only to the extent provided by the Secretary by regulation.''
    (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. Use of private delivery 
                                        services.''
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