[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 367 Introduced in House (IH)]





105th CONGRESS
  1st Session
                                H. R. 367

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 15 days notice and judicial 
   consent before seizure, to exclude civil damages for unauthorized 
        collection actions from income, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 7, 1997

Mr. Traficant (for himself, Mr. Norwood, Mr. Hefley, Mr. Hayworth, and 
  Mr. Duncan 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 15 days notice and judicial 
   consent before seizure, to exclude civil damages for unauthorized 
        collection actions 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 15 DAYS NOTICE AND JUDICIAL CONSENT BEFORE 
              SEIZURE.

    (a) 15-Day Notice Requirement.--Subsection (a) of section 6331 of 
the Internal Revenue Code of 1986 is amended--
            (1) in the first sentence, by striking ``10 days'' and 
        inserting ``15 days'', and
            (2) in the last sentence, by striking ``10-day period'' and 
        inserting ``15-day period''.
    (b) Judicial Consent.--
            (1) 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.''
            (2) Clerical amendment.--The table of sections for 
        subchapter D of chapter 64 of such Code is amended by striking 
        the item relating to section 6344 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. EXCLUSION FROM GROSS INCOME FOR CIVIL DAMAGES FOR UNAUTHORIZED 
              COLLECTION ACTIONS.

    (a) In General.--Section 7433 of the Internal Revenue Code of 1986 
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.''
    (b) Effective Date.--The amendment 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. STUDY OF REVENUE IMPACT.

    The Internal Revenue Service shall contract with an independent 
accounting firm to determine the revenue losses (if any) which result 
this Act.
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