[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4994 Referred in Senate (RFS)]
111th CONGRESS
2d Session
H. R. 4994
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 15, 2010
Received; read twice and referred to the Committee on Finance
_______________________________________________________________________
AN ACT
To amend the Internal Revenue Code of 1986 to reduce taxpayer burdens
and enhance taxpayer protections, 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, ETC.
(a) Short Title.--This Act may be cited as the ``Taxpayer
Assistance Act of 2010''.
(b) Amendment of Internal Revenue Code of 1986.--Except as
otherwise expressly provided, whenever in this Act an amendment or
repeal is expressed in terms of an amendment to, or repeal of, a
section or other provision, the reference shall be considered to be
made to a section or other provision of the Internal Revenue Code of
1986.
(c) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title, etc.
TITLE I--CELL PHONES AND ELECTRONIC FILING
Sec. 101. Removal of cellular telephones and similar telecommunications
equipment from listed property.
Sec. 102. Electronic filing exemption for religious reasons.
Sec. 103. Accelerate interest on refunds for returns filed
electronically.
TITLE II--COLLECTION
Sec. 201. Study on the effectiveness of collection alternatives.
Sec. 202. Repeal of partial payment requirement on submissions of
offers-in-compromise.
TITLE III--TAXPAYER ASSISTANCE AND PROTECTION IMPROVEMENTS
Sec. 301. Referrals to Low-Income Taxpayer Clinics permitted.
Sec. 302. Low-income taxpayer clinics.
Sec. 303. EITC outreach.
Sec. 304. Taxpayer notification of suspected identity theft.
Sec. 305. Clarification of IRS unclaimed refund authority.
Sec. 306. Study on delivery of tax refunds.
Sec. 307. Study on timely processing and use of information returns.
Sec. 308. Study on easing the burden of in-person tax payments.
TITLE IV--REVENUE PROVISIONS
Sec. 401. Expansion of bad check penalty to electronic payments.
Sec. 402. Increase in information return penalties.
Sec. 403. Budget compliance.
TITLE I--CELL PHONES AND ELECTRONIC FILING
SEC. 101. REMOVAL OF CELLULAR TELEPHONES AND SIMILAR TELECOMMUNICATIONS
EQUIPMENT FROM LISTED PROPERTY.
(a) In General.--Subparagraph (A) of section 280F(d)(4) (defining
listed property) is amended by adding ``and'' at the end of clause
(iv), by striking clause (v), and by redesignating clause (vi) as
clause (v).
(b) Effective Date.--The amendment made by subsection (a) shall
apply to taxable years beginning after December 31, 2009.
SEC. 102. ELECTRONIC FILING EXEMPTION FOR RELIGIOUS REASONS.
Paragraph (3) of section 6011(e) (relating to special rule for tax
return preparers) is amended by adding at the end the following new
subparagraph:
``(D) Exemption for religious reasons.--The
Secretary may exempt from requirements under
subparagraph (A) a tax return preparer who--
``(i) is a member of a recognized religious
sect or division thereof, and
``(ii) is an adherent of established
teachings or tenets that do not permit the use
of magnetic media.''.
SEC. 103. ACCELERATE INTEREST ON REFUNDS FOR RETURNS FILED
ELECTRONICALLY.
(a) In General.--Subsection (e) of section 6611 (relating to
disallowance of interest on certain overpayments) is amended by adding
at the end the following new paragraph:
``(4) Special rule.--In the case of any individual income
tax return relating to income tax filed by electronic means,
paragraph (1) shall be applied by substituting `30 days' for
`45 days' each place it appears.''.
(b) Effective Date.--The amendments made by subsection (a) shall
apply to taxable years beginning after December 31, 2011.
TITLE II--COLLECTION
SEC. 201. STUDY ON THE EFFECTIVENESS OF COLLECTION ALTERNATIVES.
(a) In General.--The Secretary of the Treasury shall conduct a
study to assess the effectiveness of collection alternatives,
especially offers-in-compromise, on long-term tax compliance. Such a
study shall analyze a group of taxpayers who applied for offers-in-
compromise 5 or more years ago and compare the amount of revenue
collected from the taxpayers whose offers were accepted with the amount
of revenue collected from the taxpayers whose offers were rejected, and
compare, among the taxpayers whose offers were rejected, the amount
they offered with the amounts collected.
(b) Report.--Not later than 1 year after the date of enactment of
this Act, the Secretary of the Treasury shall submit a report to
Congress containing the results of the study conducted under subsection
(a).
SEC. 202. REPEAL OF PARTIAL PAYMENT REQUIREMENT ON SUBMISSIONS OF
OFFERS-IN-COMPROMISE.
(a) In General.--Section 7122 is amended by striking subsection (c)
and by redesignating subsections (d), (e), (f), and (g) as subsection
(c), (d), (e), and (f), respectively.
(b) Conforming Amendments.--
(1) Paragraph (3) of section 7122(d) is amended--
(A) by inserting ``and'' at the end of the
subparagraph (A),
(B) by striking ``, and'' at the end of
subparagraph (B) and inserting a period, and
(C) by striking subparagraph (C).
(2) Subsection (f) of section 6159 is amended by striking
``section 7122(e)'' and inserting ``section 7122(d)''.
(c) Effective Date.--The amendments made by this section shall
apply to offers submitted after the date of the enactment of this Act.
TITLE III--TAXPAYER ASSISTANCE AND PROTECTION IMPROVEMENTS
SEC. 301. REFERRALS TO LOW-INCOME TAXPAYER CLINICS PERMITTED.
(a) In General.--Subsection (c) of section 7526 is amended by
adding at the end the following new paragraph:
``(6) Treasury employees permitted to refer taxpayers to
qualified low-income taxpayer clinics.--Notwithstanding any
other provision of law, officers and employees of the
Department of the Treasury may refer taxpayers for advice and
assistance to qualified low-income taxpayer clinics receiving
funding under this section.''.
(b) Effective Date.--The amendment made by this section shall apply
to referrals made after the date of the enactment of this Act.
SEC. 302. LOW-INCOME TAXPAYER CLINICS.
(a) Increase in Authorized Grants.--Paragraph (1) of section
7526(c) (relating to aggregate limitation) is amended by striking
``$6,000,000'' and inserting ``$20,000,000''.
(b) Clerical Amendment.--Section 7526(c)(5) is amended by inserting
``qualified'' before ``low-income''.
(c) Effective Date.--The amendments made by this section shall
apply with respect to grants made after the date of the enactment of
this Act.
SEC. 303. EITC OUTREACH.
(a) In General.--Section 32 (relating to earned income) is amended
by adding at the end the following new subsection:
``(n) Notification of Potential Eligibility for Credit and
Refund.--
``(1) In general.--To the extent possible and on an annual
basis, the Secretary shall provide to each taxpayer who--
``(A) for any preceding taxable year for which
credit or refund is not precluded by section 6511, and
``(B) did not claim the credit under subsection (a)
but may be allowed such credit for any such taxable
year based on return or return information (as defined
in section 6103(b)) available to the Secretary,
notice that such taxpayer may be eligible to claim such credit
and a refund for such taxable year.
``(2) Notice.--Notice provided under paragraph (1) shall be
in writing and sent to the last known address of the
taxpayer.''.
(b) Effective Date.--The amendment made by this section shall take
effect on the date of the enactment of this Act.
SEC. 304. TAXPAYER NOTIFICATION OF SUSPECTED IDENTITY THEFT.
(a) In General.--Chapter 77 (relating to miscellaneous provisions),
as amended by this Act, is amended by adding at the end the following
new section:
``SEC. 7529. NOTIFICATION OF SUSPECTED IDENTITY THEFT.
``If, in the course of an investigation under the internal revenue
laws, the Secretary determines that there was or may have been an
unauthorized use of the identity of the taxpayer or a dependent of the
taxpayer, the Secretary shall, to the extent permitted by law--
``(1) as soon as practicable and without jeopardizing such
investigation, notify the taxpayer of such determination, and
``(2) if any person is criminally charged by indictment or
information with respect to such unauthorized use, notify such
taxpayer as soon as practicable of such charge.''.
(b) Clerical Amendment.--The table of sections for chapter 77 is
amended by adding at the end the following new item:
``Sec. 7529. Notification of suspected identity theft.''.
(c) Effective Date.--The amendments made by this section shall
apply to determinations made after the date of the enactment of this
Act.
SEC. 305. CLARIFICATION OF IRS UNCLAIMED REFUND AUTHORITY.
Paragraph (1) of section 6103(m) (relating to tax refunds) is
amended by inserting ``, and through any other means of mass
communication,'' after ``media''.
SEC. 306. STUDY ON DELIVERY OF TAX REFUNDS.
(a) In General.--The National Taxpayer Advocate shall conduct a
study on the feasibility of delivering tax refunds on debit cards,
prepaid cards, and other electronic means to assist individuals that do
not have access to financial accounts or institutions.
(b) Report.--Not later than 1 year after the date of enactment of
this Act, the National Taxpayer Advocate shall submit a report to
Congress containing the results of the study conducted under subsection
(a).
SEC. 307. STUDY ON TIMELY PROCESSING AND USE OF INFORMATION RETURNS.
(a) In General.--The Secretary of the Treasury shall conduct a
study on the administrative and legislative changes that would be
needed to receive and process information returns before processing
income tax returns.
(b) Report.--Not later than 1 year after the date of the enactment
of this Act, the Secretary shall submit a report to the Committee on
Ways and Means of the House of Representatives and the Committee on
Finance of the Senate containing the results of the study conducted
under subsection (a), together with such recommendations as the
Secretary considers necessary or appropriate for implementation of
these changes.
SEC. 308. STUDY ON EASING THE BURDEN OF IN-PERSON TAX PAYMENTS.
(a) In General.--The Secretary of the Treasury shall conduct a
study on how to reduce the number of taxpayers making payments at IRS
Taxpayer Assistance Centers. The report shall include an analysis of--
(1) whether the Federal Tax Deposit Coupon (Form 8109)
could be expanded so that it can be used with all Federal tax
deposits and payments, and
(2) what current or new return filing, payment, and proof
of payment options could be implemented to reduce the burden of
in-person payments.
(b) Report.--Not later than 1 year after the date of the enactment
of this Act, the Secretary shall submit a report to the Committee on
Ways and Means of the House of Representatives and the Committee on
Finance of the Senate containing the results of the study conducted
under subsection (a), together with such recommendations as the
Secretary considers necessary or appropriate.
TITLE IV--REVENUE PROVISIONS
SEC. 401. EXPANSION OF BAD CHECK PENALTY TO ELECTRONIC PAYMENTS.
(a) In General.--Section 6657 (relating to bad checks) is amended
by adding at the end the following: ``Except as otherwise provided by
the Secretary, any authorization of a payment by commercially
acceptable means (within the meaning of section 6311) shall be treated
for purposes of this section in the same manner as a check.''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to authorizations of payments made after December 31, 2010.
SEC. 402. INCREASE IN INFORMATION RETURN PENALTIES.
(a) Failure To File Correct Information Returns.--
(1) In general.--Subsections (a)(1), (b)(1)(A), and
(b)(2)(A) of section 6721 are each amended by striking ``$50''
and inserting ``$100''.
(2) Aggregate annual limitation.--Subsections (a)(1),
(d)(1)(A), and (e)(3)(A) of section 6721 are each amended by
striking ``$250,000'' and inserting ``$1,500,000''.
(b) Reduction Where Correction Within 30 Days.--
(1) In general.--Subparagraph (A) of section 6721(b)(1) is
amended by striking ``$15'' and inserting ``$30''.
(2) Aggregate annual limitation.--Subsections (b)(1)(B) and
(d)(1)(B) of section 6721 are each amended by striking
``$75,000'' and inserting ``$250,000''.
(c) Reduction Where Correction on or Before August 1.--
(1) In general.--Subparagraph (A) of section 6721(b)(2) is
amended by striking ``$30'' and inserting ``$60''.
(2) Aggregate annual limitation.--Subsections (b)(2)(B) and
(d)(1)(C) of section 6721 are each amended by striking
``$150,000'' and inserting ``$500,000''.
(d) Aggregate Annual Limitations for Persons With Gross Receipts of
Not More Than $5,000,000.--Paragraph (1) of section 6721(d) is
amended--
(1) by striking ``$100,000'' in subparagraph (A) and
inserting ``$500,000'',
(2) by striking ``$25,000'' in subparagraph (B) and
inserting ``$75,000'', and
(3) by striking ``$50,000'' in subparagraph (C) and
inserting ``$200,000''.
(e) Penalty in Case of Intentional Disregard.--Paragraph (2) of
section 6721(e) is amended by striking ``$100'' and inserting ``$250''.
(f) Adjustment for Inflation.--Section 6721 is amended by adding at
the end the following new subsection:
``(f) Adjustment for Inflation.--
``(1) In general.--For each fifth calendar year beginning
after 2012, each of the dollar amounts under subsections (a),
(b), (d) (other than paragraph (2)(A) thereof), and (e) shall
be increased by such dollar amount multiplied by the cost-of-
living adjustment determined under section 1(f)(3) determined
by substituting `calendar year 2011' for `calendar year 1992'
in subparagraph (B) thereof.
``(2) Rounding.--If any amount adjusted under paragraph
(1)--
``(A) is not less than $75,000 and is not a
multiple of $500, such amount shall be rounded to the
next lowest multiple of $500, and
``(B) is not described in subparagraph (A) and is
not a multiple of $10, such amount shall be rounded to
the next lowest multiple of $10.''.
(g) Effective Date.--The amendments made by this section shall
apply with respect to information returns required to be filed on or
after January 1, 2011.
SEC. 403. BUDGET COMPLIANCE.
The budgetary effects of this Act, for the purpose of complying
with the Statutory Pay-As-You-Go Act of 2010, shall be determined by
reference to the latest statement titled ``Budgetary Effects of PAYGO
Legislation'' for this Act, submitted for printing in the Congressional
Record by the Chairman of the Committee on the Budget of the
House of Representatives, provided that such statement has been
submitted prior to the vote on passage.
Passed the House of Representatives April 14, 2010.
Attest:
LORRAINE C. MILLER,
Clerk.