[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 1612 Introduced in Senate (IS)]







105th CONGRESS
  2d Session
                                S. 1612

  To provide for taxpayer recovery of costs, fees, and expenses under 
 section 504 of title 5, United States Code, and section 2412 of title 
            28, United States Code, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            February 5, 1998

Mr. Leahy (for himself and Mr. Feingold) introduced the following bill; 
  which was read twice and referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
  To provide for taxpayer recovery of costs, fees, and expenses under 
 section 504 of title 5, United States Code, and section 2412 of title 
            28, United States Code, 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. SHORT TITLE.

    This Act may be cited as the ``Equal Access to Justice For 
Taxpayers Act of 1998''.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds the following:
            (1) In 1981, Congress enacted the Equal Access to Justice 
        Act to help individuals, partnerships, and corporations seek 
        review of, or defend against, unjustified governmental action 
        because of the expense involved in securing the vindication of 
        their rights in civil actions and in administrative 
        proceedings.
            (2) Taxpayers have been denied equal access to justice 
        under the Equal Access to Justice Act.
            (3) The Report of the National Commission on Restructuring 
        the Internal Revenue Service, dated June 25, 1997, found that 
        ``While the Taxpayer Bill of Rights legislation made great 
        strides to allow taxpayers to recover damages for Internal 
        Revenue Service malfeasance, current provisions do not provide 
        adequate relief. In addition, there are many cases in which 
        taxpayers are not able to obtain review of Internal Revenue 
        Service actions.''.
            (4) The Report of the National Commission on Restructuring 
        the Internal Revenue Service concluded that ``Congress must 
        provide taxpayers with adequate and reasonable compensation for 
        actual damages incurred for wrongful actions by the Internal 
        Revenue Service.''.
            (5) In hearings before the Senate Finance Committee in 
        September 1997, average taxpayers testified that--
                    (A) numerous unjustified actions by the Federal 
                Government, by means of the Internal Revenue Service, 
                caused actual damages and emotional distress; and
                    (B) the Federal Government, by means of the 
                Internal Revenue Service, used its greater resources to 
                punish taxpayers by bringing unjustified civil actions 
                and administrative proceedings.
    (b) Purposes.--The purposes of this Act are to--
            (1) provide taxpayers with the same rights as other 
        individuals, partnerships, and corporations that seek review 
        of, or defend against, unjustified Governmental action by 
        Federal agencies; and
            (2) provide taxpayers with fair opportunities to seek 
        review of, or defend against, action by the Federal Government, 
        by means of the Internal Revenue Service, by providing in 
        specified situations an award of attorney fees, expert witness 
        fees, and other costs against the United States.

SEC. 3. TAXPAYERS' RECOVERY OF COSTS, FEES, AND EXPENSES IN 
              ADMINISTRATIVE PROCEEDINGS UNDER THE EQUAL ACCESS TO 
              JUSTICE ACT.

    Section 504 of title 5, United States Code, is amended by striking 
subsection (f).

SEC. 4. TAXPAYERS' RECOVERY OF COSTS, FEES, AND EXPENSES IN COURT 
              PROCEEDINGS UNDER THE EQUAL ACCESS TO JUSTICE ACT.

    Section 2412 of title 28, United States Code, is amended--
            (1) by striking subsection (e); and
            (2) by redesignating subsection (f) as subsection (e).
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