1.
(a)This Act may be cited as the Taxpayer Bill of Rights Act of 2010
.
(b)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)The table of contents of this Act is as follows:
Sec. 1. Short title; etc.
Title I—Taxpayer Rights and Obligations
Sec. 101. Statement of taxpayer rights and obligations.
Title II—Preparation of Tax Returns
Sec. 201. Programs for the benefit of low-income taxpayers.
Sec. 202. Regulation of Federal income tax return preparers.
Sec. 203. Refund delivery products.
Sec. 204. Preparer penalties with respect to preparation of returns and other submissions.
Sec. 205. Clarification of enrolled agent credentials.
Title III—Improving Taxpayer Services
Sec. 301. Individualized lien determination required before filing notice of lien.
Sec. 302. Ban on audit insurance.
Sec. 303. Public awareness.
Sec. 304. Clarification of taxpayer assistance order authority.
Sec. 305. Taxpayer advocate directives.
Sec. 306. Improved services for taxpayers.
Sec. 307. Taxpayer access to financial institutions.
Sec. 308. Additional studies.
<enum>I</enum><header>Taxpayer Rights and Obligations </header>
<section id="H24566BF413264A74A5FBE63FEC5F3E3E"><enum>101.</enum><header>Statement of taxpayer rights and obligations</header>
<subsection id="HA73533E724D848A5BE90406BAD5D3BA0"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Chapter 77 (relating to miscellaneous provisions) is amended by adding at the end the following new section:</text>
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<section id="H27BAA8A48147478C87D93D11FE6D7BDE"><enum>7529.</enum><header>Statement of taxpayer rights and obligations</header>
<subsection id="H37B8E84CB01D46B7B43128A9A36BB83F"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary, in consultation with the National Taxpayer Advocate, shall publish a summary statement of rights and obligations arising under this title. Such statement shall provide citations to the main provisions of this title which provide for the right or obligation (as the case may be). This statement of rights and obligations does not create or confer any rights or obligations not otherwise provided for under this title.</text> </subsection>
<subsection id="H495406AA44824336905D98F6E0476191"><enum>(b)</enum><header>Statement of rights and obligations</header><text>The statement of rights and obligations is as follows:</text>
<paragraph id="HBCF90556AA6341BB8E640C399C595402"><enum>(1)</enum><header>Taxpayer rights</header>
<subparagraph id="H299DD317EF374BF091CB1A06049786BF"><enum>(A)</enum><text>Right to be informed (including adequate legal and procedural guidance and information about taxpayer rights).</text> </subparagraph>
<subparagraph id="HFDE6C9C3D8A3487B8939898E8C660477"><enum>(B)</enum><text>Right to be assisted.</text> </subparagraph>
<subparagraph id="H052C371210974401989EA6A901131D62"><enum>(C)</enum><text>Right to be heard.</text> </subparagraph>
<subparagraph id="H655CABF7C6944809A112862132247751"><enum>(D)</enum><text>Right to pay no more than the correct amount of tax.</text> </subparagraph>
<subparagraph id="H5F8235F1498B46D1BB581A05FC538A23"><enum>(E)</enum><text>Right of appeal (administrative and judicial).</text> </subparagraph>
<subparagraph id="HA511358AE3984D0BB475A052351B91BB"><enum>(F)</enum><text>Right to certainty (including guidance, periods of limitation, no second exam, and closing agreements).</text> </subparagraph>
<subparagraph id="H851DB5E987C74A1E84EEBF335E3333DA"><enum>(G)</enum><text>Right to privacy (including due process considerations, least intrusive enforcement action, and search and seizure protections).</text> </subparagraph>
<subparagraph id="H5387E27D087441A39DC5E92941D29828"><enum>(H)</enum><text>Right to confidentiality.</text> </subparagraph>
<subparagraph id="H4ADEB3725E184268A47892FB788B8153"><enum>(I)</enum><text>Right to appoint a representative in matters before the Internal Revenue Service.</text> </subparagraph>
<subparagraph id="HDDF07B4AB44C449FB0F650EE81C6D155"><enum>(J)</enum><text>Right to fair and just tax system (offer in compromise, abatement, assistance from the Office of the Taxpayer Advocate under section 7803(c), apology, and other compensation payments).</text> </subparagraph></paragraph>
<paragraph id="H208F0707504C4F93AAD743959A69EC6C"><enum>(2)</enum><header>Taxpayer obligations</header>
<subparagraph id="HCADD73E023A34D01BB211F001CAC6389"><enum>(A)</enum><text>Obligation to be honest.</text> </subparagraph>
<subparagraph id="H5F18BFBB8DDB4D859560720F8918D33A"><enum>(B)</enum><text>Obligation to be cooperative.</text> </subparagraph>
<subparagraph id="HE51076CAB38347658E6F89F9CAFF41CB"><enum>(C)</enum><text>Obligation to provide accurate information and documents on time.</text> </subparagraph>
<subparagraph id="HFFC7DD202E3142EF9A92DB97E5593B19"><enum>(D)</enum><text>Obligation to keep records.</text> </subparagraph>
<subparagraph id="H5E238658764D4A41BEF5CDCF58589EA3"><enum>(E)</enum><text>Obligation to pay taxes on time.</text> </subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="HD122143F5FD443568EC8EA796C2E2A67"><enum>(b)</enum><header>Clerical amendment</header><text>The table of sections for chapter 77 is amended by adding at the end the following new item:</text>
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<toc-entry idref="H27BAA8A48147478C87D93D11FE6D7BDE" level="section">Sec. 7529. Statement of taxpayer rights and obligations.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="H42CECC91FC7944FB9A7DF43AEC1C3699"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall take effect 180 days after the date of the enactment of this Act.</text> </subsection></section>
<enum>II</enum><header>Preparation of Tax Returns</header>
<section display-inline="no-display-inline" id="H0D2699F487184DCF9224E20798C3B4B0" section-type="subsequent-section"><enum>201.</enum><header>Programs for the benefit of low-income taxpayers</header>
<subsection id="H981AD9867BAE456F9329D00B44DCE4A6"><enum>(a)</enum><header>Volunteer income tax assistance plus</header><text>Chapter 77 (relating to miscellaneous provisions) is amended by inserting after section 7526 the following new section:</text>
<quoted-block id="H141A497F7A2F41708ADEB990AE9B5E99" style="OLC">
<section id="HB4CA31D0479E41A589BA7CFAED676E14"><enum>7526A.</enum><header>Volunteer income tax assistance plus</header>
<subsection id="H4D103DA05E3440AB92B2AB38F76F5B0A"><enum>(a)</enum><header>In general</header><text>The Secretary may, subject to the availability of appropriated funds, make grants to provide matching funds for the development, expansion, or continuation of qualified return preparation programs.</text> </subsection>
<subsection id="H97720099F88645DCB3246610F79CE823"><enum>(b)</enum><header>Definitions</header><text>For purposes of this section—</text>
<paragraph id="HD7BE05A7FE5C4C609CA0D3974CA63F30"><enum>(1)</enum><header>Qualified return preparation program</header>
<subparagraph id="H809EE0FD89094C66A5E6329D9605F9D6"><enum>(A)</enum><header>In general</header><text>The term <term>qualified return preparation program</term> means a program—</text>
<clause id="HDB81D8BB446D435DA084154CCFCDC900"><enum>(i)</enum><text>which does not charge taxpayers for its return preparation services,</text> </clause>
<clause id="H9C99AD9297854485BB6DF333734EA80B"><enum>(ii)</enum><text display-inline="yes-display-inline">which operates programs which assist low-income taxpayers, including those programs that serve taxpayers for whom English is a second language, in preparing and filing their Federal income tax returns, including schedules reporting sole proprietorship or farm income, and</text> </clause>
<clause id="H47EFDE064D054376B905F445CEB92844"><enum>(iii)</enum><text>in which all of the volunteers who assist in the preparation of Federal income tax returns meet the training requirements prescribed by the Secretary.</text> </clause></subparagraph>
<subparagraph id="HB89A891E62F2406592B3206F47815155"><enum>(B)</enum><header>Assistance to low-income taxpayers</header><text>For purposes of subparagraph (A), a program is treated as assisting low-income taxpayers if at least 90 percent of the taxpayers assisted by the program have incomes which do not exceed 250 percent of the poverty level, as determined in accordance with criteria established by the Director of the Office of Management and Budget.</text> </subparagraph></paragraph>
<paragraph id="H0B6DFD741B4C43BDA79286628E7278AF"><enum>(2)</enum><header>Program</header><text>The term <term>program</term> includes—</text>
<subparagraph id="H58733D5980FA4536B47A696583B893F6"><enum>(A)</enum><text display-inline="yes-display-inline">a program at an institution of higher education which—</text>
<clause commented="no" id="H878C0197B44345BB94CBEF5CADCB5A34"><enum>(i)</enum><text>is described in section 102 (other than subsection (a)(1)(C) thereof) of the Higher Education Act of 1965 (20 U.S.C. 1088), as in effect on the date of the enactment of this section, and which has not been disqualified from participating in a program under title IV of such Act, and</text> </clause>
<clause id="H98A57A4EBD8941BD97CD5E0CE8C4A392"><enum>(ii)</enum><text>satisfies the requirements of paragraph (1) through student assistance of taxpayers in return preparation and filing;</text> </clause></subparagraph>
<subparagraph id="H68DEFBE72D88498F82401BEA1CCF2A98"><enum>(B)</enum><text>an organization described in section 501(c) and exempt from tax under section 501(a) which satisfies the requirements of paragraph (1);</text> </subparagraph>
<subparagraph id="HC56BF37BEB334226B0D0B060629DBCDB"><enum>(C)</enum><text display-inline="yes-display-inline">a regional, State or local coalition (with one lead organization, which meets the eligibility requirements, acting as the applicant organization);</text> </subparagraph>
<subparagraph id="HCD20C51220EE4F67874DBEEA68D48C3A"><enum>(D)</enum><text>a county or municipal government agency;</text> </subparagraph>
<subparagraph id="H92B70FD3234B477F861C8A250054901D"><enum>(E)</enum><text>an Indian tribe, as defined in section 4(12) of the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4103(12)), and includes any tribally designated housing entity (as defined in section 4(21) of such Act (25 U.S.C. 4103(21)), tribal subsidiary, subdivision, or other wholly owned tribal entity;</text> </subparagraph>
<subparagraph id="H292D45FCF0024D4D9A2895294E625130"><enum>(F)</enum><text>a section 501(c)(5) organization;</text> </subparagraph>
<subparagraph id="H1C0383B0C6854B1297C867E62B414868"><enum>(G)</enum><text>a State government agency if no other eligible organization is available to assist the targeted population or community;</text> </subparagraph>
<subparagraph id="HF3F2263C996840D1B1C0DB72A74A937D"><enum>(H)</enum><text>a Cooperative Extension Service office if no other eligible organization is available to assist the targeted population or community; and</text> </subparagraph>
<subparagraph id="HB3F866BACC1F4FE1A926F60F24156012"><enum>(I)</enum><text>a nonprofit Community Development Financial Institution (CDFI) and federally- and State-chartered credit union that qualifies for a tax exemption under sections 501(c)(1) and 501(c)(14), respectively.</text> </subparagraph></paragraph></subsection>
<subsection id="HC7B03956BA4946868CDEF50CF8743F9A"><enum>(c)</enum><header>Special Rules and Limitations</header>
<paragraph id="HBB49CBCB0ED248F7B7FF98B1ED0D6EB9"><enum>(1)</enum><header>Aggregate limitation</header><text>Unless otherwise provided by specific appropriation, the Secretary shall not allocate more than $35,000,000 per year (exclusive of costs of administering the program) to grants under this section.</text> </paragraph>
<paragraph commented="no" id="H4977ED4AABD446F8A43767DB5E28F893"><enum>(2)</enum><header>Use of grants for overhead expenses prohibited</header><text>No grant made under this section may be used for overhead expenses that are not directly related to any program or that are incurred by any institution sponsoring such program.</text> </paragraph>
<paragraph id="HCCE64A9ED5814D0BAC1C13AE9FD681B7"><enum>(3)</enum><header>Other applicable rules</header><text>Rules similar to the rules under paragraphs (2) through (6) of section 7526(c) shall apply with respect to the awarding of grants to qualified return preparation programs.</text> </paragraph>
<paragraph id="H94D2863D07A44241AC6CA69F31DB5034"><enum>(4)</enum><header>Promotion of programs</header><text>The Secretary is authorized to promote the benefits of and encourage the use of qualified VITA Plus through the use of mass communications, referrals, and other means.</text> </paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="H6F8552A3A2B943018042C296263DC27B"><enum>(b)</enum><header>Low-Income taxpayer clinics</header>
<paragraph id="H3D9E457B066544D2A5AD8932D64F8C7E"><enum>(1)</enum><header>Increase in authorized grants</header><text>Paragraph (1) of section 7526(c) (relating to aggregate limitation) is amended by striking <quote>$6,000,000</quote> and inserting <quote>$20,000,000</quote>.</text> </paragraph>
<paragraph id="H37B176B9D178496A992457470D6A7619"><enum>(2)</enum><header>Use of grants for overhead expenses prohibited</header>
<subparagraph id="H3F73E7E510594CA9865BF02C3E934D19"><enum>(A)</enum><header>In general</header><text>Section 7526(c) (relating to special rules and limitations) is amended by adding at the end the following new paragraph:</text>
<quoted-block id="H550A29CC69894C6C939D1CF02FC3DBA1" style="OLC">
<paragraph id="H79CB5DD383904CDE9FE42E91937F79BA"><enum>(6)</enum><header>Use of grants for overhead expenses prohibited</header><text display-inline="yes-display-inline">No grant made under this section may be used for the overhead expenses that are not directly related to the clinic or that are of any institution sponsoring such clinic.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph>
<subparagraph id="H82D1AE6AC7DE435C917CA8CBC25C792A"><enum>(B)</enum><header>Conforming amendments</header><text>Section 7526(c)(5) is amended—</text>
<clause id="H96F356C195754CFF97C68E907207A501"><enum>(i)</enum><text>by inserting <quote>qualified</quote> before <quote>low-income</quote>, and</text> </clause>
<clause id="HDAE13591202F49ACBAFC862B572AD8B4"><enum>(ii)</enum><text>by striking the last sentence.</text> </clause></subparagraph></paragraph>
<paragraph id="HF4A57CBF5E1A461B93DBCC9DB072850D"><enum>(3)</enum><header>Promotion of clinics</header><text>Subsection (c) of section 7526 (relating to special rules and limitations), as amended by paragraph (2), is amended by adding at the end the following new paragraph:</text>
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<paragraph id="HDA4D2985D24C4126AC0F873748CF2DF7"><enum>(7)</enum><header>Promotion of clinics</header><text>The Secretary is authorized to promote the benefits of and encourage the use of qualified low-income taxpayer clinics through the use of mass communications, referrals, and other means.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph>
<paragraph id="H492234FB5CA4467EB2BCBA23BDBC1FC1"><enum>(4)</enum><header>IRS referrals to clinics</header><text>Subsection (c) of section 7526 (relating to special rules and limitations), as amended by the preceding provisions of this subsection, is amended by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H3949A8A8303C483C8E2726CF2C9E620F" style="OLC">
<paragraph id="HF3BDC0147DB7417EB193342941D4928B"><enum>(8)</enum><header>IRS referrals</header><text display-inline="yes-display-inline">The Secretary may refer taxpayers to qualified low-income taxpayer clinics receiving funding under this section.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph>
<paragraph id="HF0DE2618885B4FFB8DB63B12021DD49D"><enum>(5)</enum><header>Notice of availability of clinics in notice of deficiency</header><text display-inline="yes-display-inline">Subsection (a) of section 6212 (relating to general rule for notice of deficiency) is amended by inserting <quote>, as well as notice regarding the availability of low-income taxpayer clinics and information about how to contact them</quote> before the period at the end.</text> </paragraph>
<paragraph id="H6905EE83A03240DFBD21F5573E283B07"><enum>(6)</enum><header>Notice of availability of clinics in notice of hearing upon filing of notice of lien</header><text display-inline="yes-display-inline">Subsection (a) of section 6320 (relating to requirement of notice) is amended by adding at the end the following new sentence: <quote>Such notice shall include a notice to the taxpayer of the availability of low-income taxpayer clinics and information about how to contact them.</quote>.</text> </paragraph>
<paragraph id="H7F759A57E6EA42BEA7715F5A4CC36721"><enum>(7)</enum><header>Notice of availability of clinics in notice and opportunity of hearing before levy</header><text display-inline="yes-display-inline">Paragraph (3) of section 6330(a) is amended by adding at the end the following flush sentence:</text>
<quoted-block display-inline="no-display-inline" id="HB23C442F556E4F13A90FF531CC7197C6" style="OLC">
<quoted-block-continuation-text quoted-block-continuation-text-level="paragraph">Such notice shall include a notice to the taxpayer of the availability of low-income taxpayer clinics and information about how to contact them.</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection>
<subsection id="HA6AD2E9F07924E468E9B9806746C454E"><enum>(c)</enum><header>Clerical amendment</header><text display-inline="yes-display-inline">The table of sections for chapter 77 is amended by inserting after the item relating to section 7526 the following new item:</text>
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<toc-entry idref="HB4CA31D0479E41A589BA7CFAED676E14" level="section">Sec. 7526A. Volunteer income tax assistance plus.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="HB37BB7474BB441E083122834F827ABC5"><enum>(d)</enum><header>Effective Date</header><text>The amendments made by this section shall take effect on the date of the enactment of this Act.</text> </subsection></section>
<section id="HCF63BFC8CB6A40FAA08F6D664E1D93B6"><enum>202.</enum><header>Regulation of Federal income tax return preparers</header>
<subsection id="H64975E61CA21465CBD7672F3E1ACB817"><enum>(a)</enum><header>In general</header><text>Section 330(a)(1) of title 31, United States Code, is amended by inserting <quote>(including tax return preparers of Federal tax returns, documents, and other submissions)</quote> after <quote>representatives</quote>.</text> </subsection>
<subsection id="HB0EB7506B260441C9C6FAB748A50F7F7"><enum>(b)</enum><header>Promulgation of regulations</header><text>The Secretary of the Treasury shall prescribe regulations under section 330 of title 31, United States Code, to regulate any tax return preparers not otherwise regulated by the Secretary.</text> </subsection>
<subsection id="H6FA4F06665D242799FFA413EB2F07C0D"><enum>(c)</enum><header>Requirements</header><text>Such regulations shall provide guidance on the following:</text>
<paragraph id="HA2CA696B48D5483196D409C78C065D7F"><enum>(1)</enum><header>Examination</header>
<subparagraph id="HEEC6FF77C2B14E54A21B815F436FC761"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In promulgating the regulations under paragraph (1), the Secretary shall approve and oversee eligibility examinations.</text> </subparagraph>
<subparagraph id="H46632A91C959492FBE510B424520AD34"><enum>(B)</enum><header>Two examinations</header><text>One such examination shall be designed to test technical knowledge and competency to prepare individual returns, and the other examination shall be designed to test technical knowledge and competency to prepare business income tax returns.</text> </subparagraph>
<subparagraph id="H060363C69FB045218BD31B33F488E066"><enum>(C)</enum><header>EITC</header><text display-inline="yes-display-inline">The examination relating to individual returns shall test knowledge and competency regarding properly claiming the earned income tax credit under section 32 of the Internal Revenue Code of 1986.</text> </subparagraph>
<subparagraph id="H6CBB8808455F438AAB933F694C8AFCCC"><enum>(D)</enum><header>Ethics</header><text>Both examinations under subparagraph (B) shall test knowledge regarding such ethical standards for the preparation of such returns as determined appropriate by the Secretary.</text> </subparagraph>
<subparagraph id="HBBF754EEBB804924A2D4EADABC2C2EDC"><enum>(E)</enum><header>Grandfather</header><text>The Secretary is authorized to accept an individual as meeting the eligibility examination requirement of this section if, in lieu of the eligibility examination under this section, the individual passed a State licensing or State registration program eligibility examination that the Secretary determines is comparable to either of the eligibility examinations described in subparagraph (B) if such exam is administered within 5 years after the date of the issuance of the regulations under this section.</text> </subparagraph></paragraph>
<paragraph id="H31552788C5F14D9D9B58379ACFA91791"><enum>(2)</enum><header>Suitability standards</header><text>The Secretary shall provide suitability standards for practicing as a tax return preparer, including tax compliance with the requirements of the Internal Revenue Code of 1986.</text> </paragraph>
<paragraph id="HDE5A40A85C9D42619913347D8E86AA51"><enum>(3)</enum><header>Continuing eligibility</header>
<subparagraph id="H128B1A15AD8E49348BE5FAC1993346B0"><enum>(A)</enum><header>In general</header><text>The regulations under paragraph (1) shall require a renewal of eligibility every 3 years and shall set forth the manner in which a tax return preparer must renew such eligibility.</text> </subparagraph>
<subparagraph id="H15AD491016974A5EA4F014EE5E4A67D2"><enum>(B)</enum><header>Continuing professional education requirements</header><text>As part of the renewal of eligibility, such regulations shall require that each such tax return preparer show evidence of completion of such continuing education or testing requirements as specified by the Secretary.</text> </subparagraph>
<subparagraph id="H5AAB084C8CFA4980AD6E77309C86C48E"><enum>(C)</enum><header>Nonmonetary sanctions</header>
<clause id="HA658C22DAE8F44EF946C896908FDA3B5"><enum>(i)</enum><text>The regulations under this section shall provide for the denial, suspension or termination of such eligibility in the event of any failure to comply with the requirements promulgated hereunder.</text> </clause>
<clause id="H6D43D4F08EA34A8A989C067218D4CC9F"><enum>(ii)</enum><text>Under such regulations, the Secretary shall establish procedures for the appeal of any determination under this paragraph.</text> </clause></subparagraph></paragraph></subsection>
<subsection id="HC1EC3BBA0DBD4DDEA084EC9408378BAB"><enum>(d)</enum><header>Penalty for unauthorized preparation of returns</header>
<paragraph id="H679DE98F56074EEC9C4473054627AE5E"><enum>(1)</enum><header>In general</header><text>In promulgating the regulations pursuant to subsection (b), the Secretary shall impose a penalty of $1,000 for each Federal tax return, document, or other submission prepared by a tax return preparer who is not in compliance with the regulations promulgated under this section or who is suspended or disbarred from practice before the Department of the Treasury under such regulations. Such penalty shall be in addition to any other penalty which may be imposed.</text> </paragraph>
<paragraph id="HF982D2FF1A7C40568E8AC6CA5E03AEAB"><enum>(2)</enum><header>Exception</header><text>No penalty may be imposed under paragraph (1) with respect to any failure if it is shown that such failure is due to reasonable cause.</text> </paragraph></subsection>
<subsection id="HE220E4AE0EEC45A3902A7942086326B7"><enum>(e)</enum><header>Definitions</header><text display-inline="yes-display-inline">For purposes of this section—</text>
<paragraph id="H075D6A2621704B3F9C342DE0FBC57B4A"><enum>(1)</enum><header>Tax return preparer</header><text display-inline="yes-display-inline">The term <term>tax return preparer</term> has the meaning given by section 7701(a)(36) of the Internal Revenue Code of 1986, and includes any person requiring the purchase of services, a financial product or goods in lieu of or in addition to direct monetary payment.</text> </paragraph>
<paragraph id="HE9C5F2769B364343A62F1110CF4F9466"><enum>(2)</enum><header>Secretary</header><text>The terms <term>Secretary of the Treasury</term> and <term>Secretary</term> mean the Secretary of the Treasury or the delegate of the Secretary.</text> </paragraph></subsection>
<subsection id="H30DA798F98624B2E91028FDC66EB6502"><enum>(f)</enum><header>Public awareness campaign</header><text>The Secretary shall conduct a public information and consumer education campaign, utilizing paid advertising—</text>
<paragraph id="HB10AD1E2DAE047F1953409706E19878D"><enum>(1)</enum><text>to encourage taxpayers to use for Federal tax matters only professionals who establish their competency under the regulations promulgated under section 330 of title 31, United States Code, and</text> </paragraph>
<paragraph id="H89BA770B7B894565924756EC13AFC411"><enum>(2)</enum><text>to inform the public of the requirements that any compensated preparer of tax returns, documents, and submissions subject to the requirements under the regulations promulgated under such section must sign the return, document, or submission prepared for a fee and display notice of such preparer’s compliance under such regulations.</text> </paragraph></subsection>
<subsection id="HB3DFD416F3AF4D178A67D0D949E51AAA"><enum>(g)</enum><header>Effective dates</header>
<paragraph id="H83DD715A1277483CA4F682989C1792AB"><enum>(1)</enum><header>In general</header><text>The amendment made by this section shall take effect on the date of the enactment of the Act.</text> </paragraph>
<paragraph id="H088929897DAE4589AB15B0FB64CF3A66"><enum>(2)</enum><header>Regulations</header><text>The regulations required by section 330(d) of title 31, United States Code, shall be prescribed not later than 2 years after the date of the enactment of this Act.</text> </paragraph>
<paragraph id="H01A5458E54364853AD9952E3D95E461B"><enum>(3)</enum><header>Full implementation</header><text>The Secretary, taking into consideration the complexity and magnitude of the requirements set forth under this Act, may delay full implementation of the regulations promulgated herein not later than the fifth filing season after the enactment of this Act.</text> </paragraph></subsection></section>
<section id="H662F1CCCB3E44492BFCA5DD71D00CAE9"><enum>203.</enum><header>Refund delivery products</header>
<subsection id="HA108457E4D374EE5B0C1C92BA1E9C7E8"><enum>(a)</enum><header>In general</header><text>Chapter 77 (relating to miscellaneous provisions), as amended by section 101, is amended by adding at the end the following new section:</text>
<quoted-block id="HEF8D9B7AAEA14C2190D5D6A1F3B1D0E9" style="OLC">
<section id="HF215881C10574097AE9541AD3F96A6D5"><enum>7530.</enum><header>Refund delivery products</header>
<subsection id="HBFF866E404C14F4EB121B89B8DA6FD21"><enum>(a)</enum><header>Registration</header>
<paragraph id="H8B95A6AC9D40404500F341C8592B8F52"><enum>(1)</enum><header>In general</header><text>The Secretary shall by regulation require each refund delivery product facilitator to register annually with the Secretary.</text> </paragraph>
<paragraph id="H89A09646F9CA480CB8B6E8709043634E"><enum>(2)</enum><header>Registration requirements</header><text>A registration shall under paragraph (1) shall include—</text>
<subparagraph id="HDC7F2180D40D4B259229FCF81035003B"><enum>(A)</enum><text>the name, address, and TIN of the refund delivery product facilitator, and</text> </subparagraph>
<subparagraph id="H4A1448530F13411991FE873BDC20766F"><enum>(B)</enum><text>the fee schedule of the facilitator for the year.</text> </subparagraph></paragraph>
<paragraph id="HC92CA79044904FD8854BD008754EA626"><enum>(3)</enum><header>Display of registration certificate</header><text>The certificate of registration under paragraph (1) shall be displayed in the facility of the refund delivery product facilitator in the manner required by the Secretary.</text> </paragraph></subsection>
<subsection id="HDF6647B705034757A27CD230DBE3A5DC"><enum>(b)</enum><header>Disclosure requirements</header>
<paragraph id="H6B710B5BADE742E08B77A2B0267D42F8"><enum>(1)</enum><header>In general</header><text>Each refund delivery product facilitator registered with the Secretary shall be subject to the requirements of paragraphs (2) through (5).</text> </paragraph>
<paragraph id="H522ADF29D052438B97F28B414325F8B5"><enum>(2)</enum><header>Taxpayer education</header><text>The requirements of this paragraph are that the refund delivery product facilitator makes available to consumers an informational pamphlet that—</text>
<subparagraph id="HCA5E806A5D8A4D7C8C7F80A0AD88DCDA"><enum>(A)</enum><text>sets forth options available for receiving tax refunds, presented from least expensive to most expensive, and</text> </subparagraph>
<subparagraph id="H363AEFA6E3A6408AA2AF95483EC78608"><enum>(B)</enum><text>discusses short-term credit alternatives to utilizing refund delivery products.</text> </subparagraph></paragraph>
<paragraph id="HEAA9B30AD9744D4B8BE01E5C2324D3A1"><enum>(3)</enum><header>Nature of the transaction</header><text>The requirements of this paragraph are that, at the time of application for the refund delivery product, the refund delivery product facilitator specifically state in writing—</text>
<subparagraph id="H6A04F06C9262456A96A5145D161DF0F4"><enum>(A)</enum><text>in the case of a refund delivery product which is a refund loan—</text>
<clause id="HB25435ABAD7E489AAC80794DC886A7C4"><enum>(i)</enum><text>that the applicant is applying for a loan based on the applicant’s anticipated income tax refund,</text> </clause>
<clause id="HCC6B3BA1D28648069966004650122030"><enum>(ii)</enum><text>the expected time within which the loan will be paid to the applicant if such loan is approved, and</text> </clause>
<clause id="H276ABE2720CA472A9C7EB5D89FB13D98"><enum>(iii)</enum><text>that there is no guarantee that a refund will be paid in full or received within a specified time period, and that the applicant is responsible for the repayment of the loan even if the refund is not paid in full or has been delayed,</text> </clause></subparagraph>
<subparagraph id="HAA45099E3DC4497CB1CD18FFF252F044"><enum>(B)</enum><text>the time within which income tax refunds are typically paid based upon the different filing options available to the applicant, and</text> </subparagraph>
<subparagraph id="H904B45115CBC4A74BEE700EE20B3B493"><enum>(C)</enum><text>that the applicant may file an electronic return without applying for a refund delivery product and the fee for filing such an electronic return.</text> </subparagraph></paragraph>
<paragraph id="H2316C034717B4B7BB42C973586DA962B"><enum>(4)</enum><header>Fees, interest and amounts received</header><text>The requirements of this paragraph are that, at the time of application for the refund delivery product, the refund delivery product facilitator discloses to the applicant all amounts to be received in connection with a refund delivery product. Such disclosure shall include—</text>
<subparagraph id="HA2A294872EA2408C89BE007D1D735D94"><enum>(A)</enum><text>a copy of the fee schedule of the refund delivery product facilitator,</text> </subparagraph>
<subparagraph id="H6B5A5E6CE21D430C9F852C40CAF057B1"><enum>(B)</enum><text>in the case of a refund delivery product which is a refund loan—</text>
<clause id="H3A28D7D02A2C41ADBB513F82E1988F49"><enum>(i)</enum><text>the typical fees and interest rates (using annual percentage rates as defined by section 107 of the Truth in Lending Act (15 U.S.C. 1606)) for several typical amounts of such loans and of other types of consumer credit, and</text> </clause>
<clause id="H81CD2926D3FD4FFFAD5D233531F3D212"><enum>(ii)</enum><text>that the loan may have substantial fees and interest charges that may exceed those of other sources of credit, and the applicant should carefully consider—</text>
<subclause id="HC2F01F2FB1F14169B281BE5332A468EB"><enum>(I)</enum><text>whether such a loan is appropriate for the applicant, and</text> </subclause>
<subclause id="H49D63B976CDB4CFD917CA104A390868E"><enum>(II)</enum><text>other sources of credit,</text> </subclause></clause></subparagraph>
<subparagraph id="H34BE35A555914249A1D94FA68E654F3F"><enum>(C)</enum><text>typical fees and interest charges if a refund is not paid or delayed,</text> </subparagraph>
<subparagraph id="H018D21BCDA2B47F0873C9743ACCB68E"><enum>(D)</enum><text display-inline="yes-display-inline">the amount of a fee (if any) that will be charged if the refund delivery product is not approved, and</text> </subparagraph>
<subparagraph id="H20150B5E6B67460A9EB6004C96EA789F"><enum>(E)</enum><text>administrative costs and any other amounts.</text> </subparagraph></paragraph>
<paragraph id="HF976CD6F4770493BB7E17B9B72CCE00"><enum>(5)</enum><header>Other information</header><text>The requirements of this paragraph are that the refund delivery product facilitator discloses any other information required to be disclosed by the Secretary.</text> </paragraph>
<paragraph id="HAFD70BB5C4C942D89C84BA5D2F4D7CD2"><enum>(6)</enum><header>Disclosure requirement</header><text>A disclosure under any of the preceding paragraphs of this subsection shall not be treated as meeting the requirements of the respective paragraph unless the disclosure is written in a manner calculated to be understood by the average consumer of refund delivery products and provides sufficient information (as determined in accordance with regulations prescribed by the Secretary) to allow the consumer to understand such options and credit alternatives.</text> </paragraph></subsection>
<subsection id="H95701CFC46DA4406A1BB939F56FD4C10"><enum>(c)</enum><header>Penalty</header>
<paragraph id="H63344C621250429FAC4CA12C9CD141C"><enum>(1)</enum><header>In general</header><text>There is hereby imposed a penalty on any refund delivery product facilitator who fails to register with the Secretary pursuant to subsection (a) or fails to meet a disclosure requirement under subsection (b).</text> </paragraph>
<paragraph id="HE78D54128C2949AB9CDC1B9F37D1A81"><enum>(2)</enum><header>Amount of penalty</header><text>The amount of the penalty imposed by paragraph (1) shall be the greater of—</text>
<subparagraph id="HDFB607A274134527B083B58764795367"><enum>(A)</enum><text>$1,000, and</text> </subparagraph>
<subparagraph id="HE312932CD417429CAEA7FFD6009300D3"><enum>(B)</enum><text>three times the amount of the refund loan, if applicable, and refund delivery product facilitator-determined fees charged with respect to each refund delivery product provided by the refund delivery product facilitator during the period in which the failure described in paragraph (1) occurred.</text> </subparagraph></paragraph>
<paragraph id="H156FA088530E415997CF0956EA57925B"><enum>(3)</enum><header>Waiver by Secretary</header><text>In the case of a failure which is due to reasonable cause and not to willful neglect, the Secretary may waive part or all of the penalty imposed by paragraph (1) to the extent that the payment of such penalty would be excessive or otherwise inequitable relative to the failure involved.</text> </paragraph></subsection>
<subsection id="H29BCCF29B43A43069701D44D6D0060BC"><enum>(d)</enum><header>Conduct</header>
<paragraph id="H543C3A4080EF4050A14182C3703423AA"><enum>(1)</enum><header>Rules of conduct</header><text>The Secretary shall prescribe rules of conduct for refund delivery product facilitators which are similar to the rules applicable to federally authorized tax practitioners (as defined by section 7525(a)(3)(A)) under part 10 of title 31, Code of Federal Regulations.</text> </paragraph>
<paragraph id="HD7EC0268860649D68F8CDB83AA4FCEEE"><enum>(2)</enum><header>Limitation on approval as refund delivery product facilitator</header><text>For such period as the Secretary (in his discretion) determines reasonable, the Secretary may not register any person as a refund delivery product facilitator under subsection (a) who the Secretary determines has engaged in any conduct that would warrant disciplinary action under the rules of conduct prescribed under paragraph (1) or under part 10 of title 31, Code of Federal Regulations.</text> </paragraph></subsection>
<subsection id="HBB5F718EE57A479E9CA609A95C8B00E7"><enum>(e)</enum><header>Other Limitations Relating to Refund Delivery Products</header><text display-inline="yes-display-inline">In any case in which a taxpayer has consented to the release of the taxpayer’s refund indicator to a refund delivery product facilitator, the Secretary may only provide information related to the refund indicator to a refund delivery product facilitator who is registered under subsection (a). For purposes of the preceding sentence, the term <term>refund indicator</term> means a notification provided through a tax return’s acknowledgement file regarding whether a refund will be paid. The Secretary may issue a refund indicator only after the Secretary determines that the taxpayer’s refund would not be prevented by any provision of this title, including any provision relating to refund offset to repay debts for delinquent Federal or State taxes, student loans, child support, or other Federal agency debt, whether the taxpayer is claiming ineligible children for purposes of certain tax benefits, and whether the refund will be held pending a fraud investigation.</text> </subsection>
<subsection id="H57B63E85C69A4D03B0ACC1D11A9A164"><enum>(f)</enum><header>Definitions</header><text>For purposes of this section—</text>
<paragraph id="H23B7FAE7DF0C41AA9D00027D55A016C"><enum>(1)</enum><header>Refund delivery product facilitator</header>
<subparagraph id="H3543C6C5BCEB469789D1E2D7B2904F4D"><enum>(A)</enum><header>In general</header><text>The term <term>refund delivery product facilitator</term> includes any electronic filing service provider who—</text>
<clause id="HFB47365354D747AB96038BA86578F492"><enum>(i)</enum><text>solicits for, processes, receives, or accepts delivery of an application for a refund delivery product, or</text> </clause>
<clause id="HC86BC60AAFFF4C63B8CFCEB9EE7377"><enum>(ii)</enum><text>facilitates the making of a refund delivery product in any other manner.</text> </clause></subparagraph>
<subparagraph id="H8DC21E1E3F5B4A7D0008BAAE2EC6B1E2"><enum>(B)</enum><header>Electronic filing service provider</header><text>The term <term>electronic filing service provider</term> includes any person who is an electronic return originator, intermediate service provider, or transmitter.</text> </subparagraph>
<subparagraph id="HFC69420A322E443CBDD4E5D7D3A6374"><enum>(C)</enum><header>Electronic return originator</header><text>The term <term>electronic return originator</term> includes a person who originates the electronic submission of income tax returns for another person.</text> </subparagraph>
<subparagraph id="HD8CA211BB06346638FDDA68DC71D01C2"><enum>(D)</enum><header>Intermediate service provider</header><text>The term <term>intermediate service provider</term> includes a person who assists with processing return information between an electronic return originator (or the taxpayer in the case of online filing) and a transmitter.</text> </subparagraph>
<subparagraph id="H34E873D5BBD24305A0C9B46ED1C9B69"><enum>(E)</enum><header>Transmitter</header><text>The term <term>transmitter</term> includes a person who sends the electronic return data directly to the Internal Revenue Service.</text> </subparagraph></paragraph>
<paragraph id="H5BD5CFBEB4E04F09A69D87E2BC901769"><enum>(2)</enum><header>Refund delivery product</header><text>The term <term>refund delivery product</term> includes a refund loan and any other product sold to a taxpayer for a fee or any other thing of value for the purpose of receiving the taxpayer’s anticipated federal tax refund.</text> </paragraph>
<paragraph id="H9A26429E34E04EB781EC99947898CEA4"><enum>(3)</enum><header>Refund loan</header><text>The term <term>refund loan</term> includes any loan of money or any other thing of value to a taxpayer in connection with the taxpayer’s anticipated receipt of a Federal tax refund. Such term includes a loan secured by the tax refund or an arrangement to repay a loan from the tax refund.</text> </paragraph></subsection>
<subsection display-inline="no-display-inline" id="H59FBCA3E47A04DB784C974D95C79ADC3"><enum>(g)</enum><header>Regulations</header>
<paragraph id="HEB83565B7C654945A580210714682BDF"><enum>(1)</enum><header>In general</header><text>The Secretary may prescribe such regulations as necessary to carry out this subchapter.</text> </paragraph>
<paragraph id="H6DE713BEEF1F4C93A06BA07227799DC1"><enum>(2)</enum><header>Burden of registration</header><text>In promulgating such regulations, the Secretary shall minimize the burden and cost on the registrant.</text> </paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="HBF5E2DA542224903A8851E9E214EA541"><enum>(b)</enum><header>Public Awareness Campaign</header><text>The Secretary of the Treasury shall conduct a public information and consumer education campaign, utilizing paid advertising, to educate the public on making sound financial decisions with respect to refund delivery products (as defined by section 7530 of the Internal Revenue Code of 1986), including—</text>
<paragraph id="HD35A9B60C307484AB139F005D7EBC924"><enum>(1)</enum><text>the need to compare the rates and fees of refund loans with the rates and fees of conventional loans,</text> </paragraph>
<paragraph id="H86D274D3BB10430DBFD0F7C98B8EEFE"><enum>(2)</enum><text>the need to compare the amount of money received under a refund delivery product after taking into consideration such costs and fees with the total amount of the refund, and</text> </paragraph>
<paragraph id="HA0AFDB7D3DF346F0A03D0044EA63FCE3"><enum>(3)</enum><text>where and how taxpayers may lodge complaints concerning refund delivery product facilitators.</text> </paragraph></subsection>
<subsection display-inline="no-display-inline" id="H43DED9123AB04F79A4A68BC6F0CA6908"><enum>(c)</enum><header>Clerical amendment</header><text display-inline="yes-display-inline">The table of sections for chapter 77 is amended by adding at the end the following new item:</text>
<quoted-block display-inline="no-display-inline" id="H6518222E4499438096A9C000A44403EA" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 7530. Refund delivery products.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="H1CF6596797654D29A469C334FAA65313"><enum>(d)</enum><header>Effective dates</header>
<paragraph id="H8AE966CF130D4DEB96C5E39EEAF3BB9"><enum>(1)</enum><header>In general</header><text>The amendments made by this section shall take effect on the date of the enactment of the Act.</text> </paragraph>
<paragraph id="HDB4A085C107949B8B28F2DBE35EB6F46"><enum>(2)</enum><header>Regulations</header><text>The regulations required by section 7530(g) of the Internal Revenue Code of 1986 shall be prescribed not later than 2 years after the date of the enactment of this Act.</text> </paragraph>
<paragraph id="H51A5B5DA7246433683942441BFFC62CD"><enum>(3)</enum><header>Full implementation</header><text>The Secretary of the Treasury, taking into consideration the complexity and magnitude of the requirements set forth under this Act, may delay full implementation of the regulations promulgated under such section not later than 5 years after the enactment of this Act.</text> </paragraph></subsection></section>
<section id="H8CCB9EC539524997ABA0F3BB2DA212D0"><enum>204.</enum><header>Preparer penalties with respect to preparation of returns and other submissions</header>
<subsection id="H85177BDF2C0D4AD5A351E45D030F8F1F"><enum>(a)</enum><header>Inclusion of other submissions in penalty provisions</header>
<paragraph id="H4DE358B0602443DAAFFE3FDB72249B9C"><enum>(1)</enum><header>Understatement of taxpayer’s liability</header>
<subparagraph id="HE808BF8F48DD48BD98970FDF1A38AB2B"><enum>(A)</enum><header>In general</header><text>Section 6694 (relating to understatement of taxpayer’s liability by tax return preparer) is amended by striking <quote>return or claim of refund</quote> each place it appears and inserting <quote>return, claim of refund, or other submission</quote>.</text> </subparagraph>
<subparagraph id="HF409DFD954D64F72A42D12A8C313BF4C"><enum>(B)</enum><header>Conforming amendments</header><text>Section 6694, as amended by paragraph (1), is amended by striking <quote>return or claim</quote> each place it appears and inserting <quote>return, claim, or other submission</quote>.</text> </subparagraph></paragraph>
<paragraph id="H48C1AA7579054EA9A437188E20654C5F"><enum>(2)</enum><header>Other assessable penalties</header>
<subparagraph id="HCDD198E6D17849EFA7C87A9CC3833111"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Section 6695 (relating to other assessable penalties with respect to the preparation of tax returns for other persons) is amended by striking <quote>return or claim of refund</quote> each place it appears and inserting <quote>return, claim of refund, or other submission</quote>.</text> </subparagraph>
<subparagraph id="H798DF1A589D34CD0869B2A8BECB3EA2B"><enum>(B)</enum><header>Conforming amendments</header><text>Section 6695, as amended by paragraph (1), is amended by striking <quote>return or claim</quote> each place it appears and inserting <quote>return, claim, or other submission</quote>.</text> </subparagraph></paragraph></subsection>
<subsection id="H0608238360544B73B09062285592D00C"><enum>(b)</enum><header>Increase in certain other assessable penalty amounts</header>
<paragraph id="H11EC6DD54FF342A1A46B3179DDA3695D"><enum>(1)</enum><header>In general</header><text>Subsections (a), (b), and (c) of section 6695 (relating to other assessable penalties with respect to the preparation of income tax returns for other persons) are each amended by striking <quote>$50</quote> and inserting <quote>$1,000</quote>.</text> </paragraph>
<paragraph id="HA81E210E112F44A7BBF9C458CE492982"><enum>(2)</enum><header>Removal of annual limitation</header><text>Subsections (a), (b), and (c) of section 6695 are each amended by striking the last sentence thereof.</text> </paragraph></subsection>
<subsection id="H3F3F19309C674BFDAD85B2618D94E1FF"><enum>(c)</enum><header>Review by the Treasury Inspector General for Tax Administration</header><text>Subparagraph (A) of section 7803(d)(2) is amended by striking <quote>and</quote> at the end of clause (iii), by striking the period at the end of clause (iv) and inserting <quote>, and</quote>, and by adding at the end the following new clause:</text>
<quoted-block id="H77AC7468CF3A4E3481C2F5E700B98423" style="OLC">
<clause id="H014E406705434FD5B569EFB4356C464F"><enum>(v)</enum><text>a summary of the penalties assessed and collected during the reporting period under sections 6694 and 6695 and under the regulations promulgated under section 330 of title 31, United States Code, and a review of the procedures by which violations are identified and penalties are assessed under those sections,</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="HC89F48F0A59D43F99D24241F3B20A015"><enum>(d)</enum><header>Additional certification on documents other than returns</header>
<paragraph id="H84265CA91FDC4892851805C81793CFF4"><enum>(1)</enum><header>Identifying number required for all submissions to the IRS by tax return preparers</header><text>The first sentence of paragraph (4) of section 6109(a) is amended by striking <quote>return or claim for refund</quote> and inserting <quote>return, claim for refund, or other document</quote>.</text> </paragraph>
<paragraph id="H13AB97173D4D4CFAB881CA069345F5EF"><enum>(2)</enum><header>Effective date</header><text>The amendment made by paragraph (1) shall apply to documents filed after the date of the enactment of this Act.</text> </paragraph></subsection>
<subsection id="H6D45FD11E4B94AECA29E967A549A85D4"><enum>(e)</enum><header>Coordination with section 6060<enum-in-header>(a)</enum-in-header></header><text>The Secretary of the Treasury shall coordinate the requirements under the regulations promulgated under section 330 of title 31, United States Code, with the return requirements of section 6060 of the Internal Revenue Code of 1986.</text> </subsection>
<subsection id="H46366FCC0241480DB7C5E6FD944E7C69"><enum>(f)</enum><header>Effective date</header><text>The regulations required by this section shall be prescribed not later than one year after the date of the enactment of this Act.</text> </subsection></section>
<section id="HAB6E82E1B1384BFEA82FBE48032278FB"><enum>205.</enum><header>Clarification of enrolled agent credentials</header><text display-inline="no-display-inline">Section 330 of title 31, United States Code, as amended by section 202, is amended—</text>
<paragraph id="H91DF417EA156452F804C2D8AFA4F790F"><enum>(1)</enum><text>by redesignating subsection (e) as subsection (f), and</text> </paragraph>
<paragraph id="H680187D2667E4711A6A158CAB53DE957"><enum>(2)</enum><text>by inserting after subsection (d) the following new subsection:</text>
<quoted-block id="H473E57FB787C4D94B204026B55B775BD" style="OLC">
<subsection id="HF15315032CE742E5A204718319818CE0"><enum>(e)</enum><text>Any enrolled agents properly licensed to practice as required under rules promulgated under subsection (a) shall be allowed to use the credentials or designation as <quote>enrolled agent</quote>, <quote>EA</quote>, or <quote>E.A.</quote>.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section>
<enum>III</enum><header>Improving Taxpayer Services</header>
<section id="H8718154E73364F3998D23AF692B04D12"><enum>301.</enum><header>Individualized lien determination required before filing notice of lien</header>
<subsection id="H8FBDFC5CF973443EB5ACDD5D7166FA75"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 6323 is amended by adding at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H9537F9EC54474D188E5C058CE0CA04FD" style="OLC">
<subsection id="HF90F9F412FC041098AE7C3A913C4AF7B"><enum>(k)</enum><header>Lien determination before filing</header>
<paragraph id="H975DC7DC584641939417ED45C8F764AC"><enum>(1)</enum><header>In general</header><text>The Secretary shall not file a notice of lien before making an individualized lien determination.</text> </paragraph>
<paragraph id="HC0AAEBD8B1924E6FA645ACD6CB834E42"><enum>(2)</enum><header>Lien determination</header><text>In making an individualized lien determination with respect to a taxpayer, the Secretary shall consider factors, including—</text>
<subparagraph id="H2FA804113B224E6DBAC084DCC4C7811B"><enum>(A)</enum><text>the amount due,</text> </subparagraph>
<subparagraph id="H011F7C174BF8465382F3548A55EFF805"><enum>(B)</enum><text>the lien filing fee,</text> </subparagraph>
<subparagraph id="HDE77982DB6BE48A7B461214B6595DDBE"><enum>(C)</enum><text>the value of the taxpayer’s equity in the property or right to property,</text> </subparagraph>
<subparagraph id="HDC6EEB9C7AF640AB8FBE25C0E21A9AA1"><enum>(D)</enum><text>the taxpayer’s tax compliance history,</text> </subparagraph>
<subparagraph id="H74B1F7CDEA834634A3486BBBC587284F"><enum>(E)</enum><text>extenuating circumstances, if any, that explain the delinquency, and</text> </subparagraph>
<subparagraph id="HCDD82618C1ED4C728891E5E7712EAEFE"><enum>(F)</enum><text>the effect of the filing on the taxpayer’s ability to obtain financing, generate future income, and pay current and future tax liabilities.</text> </subparagraph></paragraph>
<paragraph id="H27AF122BF49C427A8844CD5D708A935C"><enum>(3)</enum><header>Supervisory review</header><text>In any case in which—</text>
<subparagraph id="H6600AC85C361463EACBF3223B55C6973"><enum>(A)</enum><text>collecting a liability through a lien imposed under section 6321 would create an economic hardship (within the meaning of section 6343(a)(1)(D)), or</text> </subparagraph>
<subparagraph id="H8C0A3259CFCC460A85903FCC1AA5CA57"><enum>(B)</enum><text>the taxpayer does not have significant equity in property or right to property,</text> </subparagraph><continuation-text continuation-text-level="paragraph">the Secretary shall not file a notice of lien unless the supervisor of the employee making the lien determination referenced in paragraph (2) also determines that the filing is necessary.</continuation-text></paragraph>
<paragraph id="HB4FC4A75A32A481593A95729120C1F63"><enum>(4)</enum><header>Withdrawal of Lien</header><text>A lien filed in violation of this subsection shall be withdrawn under subsection (j).</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection commented="no" id="H1161FFBD0D894D9FA59D7F7E2FF7C56F"><enum>(b)</enum><header>Effective date</header><text>The amendment made by subsection (a) shall apply with respect to liens filed after the date of the enactment of this Act.</text> </subsection></section>
<section id="HAE659DA5AB9D41879135A252C960BF39"><enum>302.</enum><header>Ban on audit insurance</header><text display-inline="no-display-inline">Section 330 of title 31, United States Code, as amended by sections 202 and 205, is amended by adding at the end the following new subsection:</text>
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<subsection id="H62FAA3A9CD8E4B639080F66AF9AB03A7"><enum>(g)</enum><header>Ban on Audit Insurance</header><text display-inline="yes-display-inline">No person admitted to practice before the Department of the Treasury may directly or indirectly offer or provide insurance or other form of indemnification or reimbursement to cover a taxpayer’s assessment of federal tax, penalties, or interest.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section>
<section id="H3D42B0D464774B899A313E76C1AFF1AE"><enum>303.</enum><header>Public awareness</header>
<subsection id="H88621A2FBC86427DA39D419C566DFC40"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 6103(k) (relating to disclosure of certain returns and return information for tax administration purposes) is amended by adding at the end the following new paragraph:</text>
<quoted-block id="HAB82D964A05745879D20A5FEB40BEF88" style="OLC">
<paragraph id="H0FD0F5D0266C4795BCE7A830644D1726"><enum>(10)</enum><header>Disclosure of recognized, certified, or registered persons; revocation of registration</header><text>The Secretary shall furnish to the public—</text>
<subparagraph id="H16732C06893B47528C0D525155119C9D"><enum>(A)</enum><text>the identity of any person who—</text>
<clause id="H909F9A63443C427F9A8B68F79FD1CE3F"><enum>(i)</enum><text>is an enrolled agent or is an attorney or certified public accountant who either has a power of attorney on file with the Internal Revenue Service or notifies the Internal Revenue Service of their status as a preparer of Federal tax returns,</text> </clause>
<clause id="H72627D9D349740378F91701018973901"><enum>(ii)</enum><text>is certified under section 330(d) of title 31, United States Code, as a tax return preparer, or</text> </clause>
<clause id="HA4AF6926B4E54253B8DF61AD7FCB8912"><enum>(iii)</enum><text>is registered as a refund delivery product facilitator pursuant to section 7530, and</text> </clause></subparagraph>
<subparagraph id="H5B3D8EA06D3B4C57B114B9060AE69762"><enum>(B)</enum><text>information as to whether or not any person who is otherwise suspended or disbarred is no longer so recognized, certified, or registered (as the case may be).</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="H142FA31E9D684E349B30C89C70FC7BA3"><enum>(b)</enum><header>Effective date</header><text>The amendment made by subsection (a) shall take effect not later than two years after the date of enactment of this Act.</text> </subsection></section>
<section id="HF7331BFFFBAB424398C4833223B20D26"><enum>304.</enum><header>Clarification of taxpayer assistance order authority</header>
<subsection id="H8B158A4702204972A59615E1EB25A302"><enum>(a)</enum><header>In general</header><text>Paragraph (2) of section 7811(b) is amended—</text>
<paragraph id="H16E61C6E965A42BC8A294B08743679D1"><enum>(1)</enum><text>by redesignating subparagraphs (C) and (D) as subparagraphs (D) and (E), respectively, and</text> </paragraph>
<paragraph id="HCE37C46042594FC3A108BB320345C295"><enum>(2)</enum><text>by inserting after subparagraph (B) the following new subparagraph:</text>
<quoted-block id="H396CD352035747DF99DB76323660983A" style="OLC">
<subparagraph id="H14FE2614A228442B9D16773F973A8F56"><enum>(C)</enum><text>chapter 74 (relating to closing agreements and compromises),</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection>
<subsection id="HFB993513E38E49B3A62AFBAB75F436E9"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to orders issued after the date of the enactment of this Act.</text> </subsection></section>
<section id="H9B32805842D4440E863110A08236CDE6"><enum>305.</enum><header>Taxpayer advocate directives</header>
<subsection id="HA4B42C741E7F444AABA48CF180118084"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subchapter A of chapter 80 is amended by inserting after section 7811 the following new section:</text>
<quoted-block display-inline="no-display-inline" id="HA376282351604C16AAD5F58959CF3CC3" style="OLC">
<section id="HF80C07A8D1D44A38953392B131E9B910"><enum>7811A.</enum><header>Taxpayer advocate directives</header>
<subsection id="HEF14E8849ED84056872F54888BD0BF9F"><enum>(a)</enum><header>Authority To issue</header><text display-inline="yes-display-inline">The National Taxpayer Advocate may issue a Taxpayer Advocate Directive to mandate administrative or procedural changes to improve the operation of a functional process or to grant relief to groups of taxpayers (or all taxpayers) if its implementation will protect the rights of taxpayers, prevent undue burden, ensure equitable treatment, or provide an essential service to taxpayers. A Taxpayer Advocate Directive may only be issued by the National Taxpayer Advocate. The terms of a Taxpayer Advocate Directive may require the Commissioner to implement it within a specified period of time.</text> </subsection>
<subsection id="HC2BF9E8224284AFD8B2905494A437E04"><enum>(b)</enum><header>Authority To modify or rescind</header><text>Any Taxpayer Advocate Directive may be modified or rescinded—</text>
<paragraph id="H5A010FF98E964450A9C8BBC2FE1DEAA8"><enum>(1)</enum><text>only by the National Taxpayer Advocate, the Commissioner of Internal Revenue, or the Deputy Commissioner of Internal Revenue, and</text> </paragraph>
<paragraph id="H4EA22FFB6B9047C8A7AA1582C38A920E"><enum>(2)</enum><text>only if a written explanation of the reasons for the modification or rescission is provided to the National Taxpayer Advocate.</text> </paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="H113FB36ED3C944D3A26CD243A22B5383"><enum>(b)</enum><header>Annual report</header>
<paragraph id="H117A5742227E4ABE8A5618CC966DE368"><enum>(1)</enum><header>In general</header><text>Clause (ii) of section 7803(c)(2)(B) is amended by redesignating subclauses (III) through (XI) as subclauses (IV) through (XII), respectively, and by inserting after subclause (II) the following new subclause:</text>
<quoted-block display-inline="no-display-inline" id="HF960780254424C249850FE4F86653F23" style="OLC">
<subclause id="H92D71A898C774034B39FE8FBA4F21C97"><enum>(III)</enum><text display-inline="yes-display-inline">contain Taxpayer Advocate Directives issued under section 7811A;</text> </subclause><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph>
<paragraph id="H91E83F10DE474F87B32D5DF48C349493"><enum>(2)</enum><header>Conforming amendments</header><text display-inline="yes-display-inline">Clause (ii) of section 7803(c)(2)(B), as amended by paragraph (1), is amended—</text>
<subparagraph id="H530CDCAC84C54979BBE6B082B6224295"><enum>(A)</enum><text>by striking <quote>subclauses (I), (II), and (III)</quote> in subclauses (V), (VI), and (VII) thereof and inserting <quote>subclauses (I), (II), (III), and (IV)</quote>, and</text> </subparagraph>
<subparagraph id="H8C23D6EF2E0E43C6A41BBDBAD54794D9"><enum>(B)</enum><text>in subclause (VIII)—</text>
<clause id="HDD06268AA11F4D00BF68EA0513EE5D98"><enum>(i)</enum><text>by inserting <quote>or Taxpayer Advocate Directive</quote> after <quote>Taxpayer Assistance Order</quote>, and</text> </clause>
<clause id="H72C8344480D44071944C9691802368B7"><enum>(ii)</enum><text>by inserting <quote>or 7811A(a)</quote> after <quote>section 7811(b)</quote>.</text> </clause></subparagraph></paragraph></subsection>
<subsection id="H417532B53E174B11BA97995558775AE4"><enum>(c)</enum><header>Clerical amendment</header><text>The table of sections for subchapter A of chapter 80 is amended by inserting after the item relating to section 7811 the following new item:</text>
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<toc container-level="quoted-block-container" idref="HA376282351604C16AAD5F58959CF3CC3" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry idref="HF80C07A8D1D44A38953392B131E9B910" level="section">Sec. 7811A. Taxpayer advocate directives.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section>
<section id="HF053FDCD471540EAA6774896C8EE64BA"><enum>306.</enum><header>Improved services for taxpayers</header>
<subsection id="H003F823CAD1B499FA5D03D732F577351"><enum>(a)</enum><header>In general</header><text>It is the sense of Congress that the Internal Revenue Service should within 2 years—</text>
<paragraph id="HC22257665CA7439EBB359A4DBB5A2649"><enum>(1)</enum><text>reduce the time between receipt of an electronically filed return and issuance of a refund,</text> </paragraph>
<paragraph id="H0D656585D19C4B1D9263901556686148"><enum>(2)</enum><text>expand assistance to low-income taxpayers,</text> </paragraph>
<paragraph id="HB569BEA6A7B443EA876413CF0993EF81"><enum>(3)</enum><text>allocate resources to assist low-income taxpayers in establishing accounts at financial institutions that receive direct deposits from the United States Treasury,</text> </paragraph>
<paragraph id="H9D654A62AEAA4E188F9F877CC7DFF27A"><enum>(4)</enum><text display-inline="yes-display-inline">deliver tax refunds on debit cards, prepaid cards, and other electronic means to assist individuals that do not have access to financial accounts or institutions,</text> </paragraph>
<paragraph id="H9C8D52D22AE640198523F29EDD007D43"><enum>(5)</enum><text>establish a pilot program for satellite walk-in centers to be located in rural underserved communities without easy access to Internal Revenue Service Taxpayer Assistance Centers by using office facilities currently occupied by the Federal Government, including United States Postal Service and Social Security Administration facilities; such satellite walk-in centers should have the capability to provide video-conferencing services and scanning or other digitizing functions to deliver, in an interactive manner, all service and compliance functions currently available in Internal Revenue Service Taxpayer Assistance Centers, and</text> </paragraph>
<paragraph id="HCA194337EAFB436AAC7D3E986757B23C"><enum>(6)</enum><text>establish a pilot program for mobile tax return preparation offices.</text> </paragraph></subsection>
<subsection id="HD62F39C52D224A659B2B1DB5A4444524"><enum>(b)</enum><header>Location of service</header>
<paragraph id="HFFB4CDBE3F684DF28A9A7541FD1D271E"><enum>(1)</enum><header>In general</header><text>The mobile tax return filing offices should be located in communities that the Secretary determines have a high incidence of taxpayers claiming the earned income tax credit, particularly in locations with few community volunteer tax preparation clinics.</text> </paragraph>
<paragraph id="H64E5568A64194B5D919DB19B2AE2500B"><enum>(2)</enum><header>Indian reservation</header><text>At least one mobile tax return filing office should be on or near an Indian reservation (as defined in section 168(j)(6) of the Internal Revenue Code of 1986).</text> </paragraph></subsection></section>
<section id="HA41B71D27FD84D77B254A02B63E6CD12"><enum>307.</enum><header>Taxpayer access to financial institutions</header>
<subsection id="HB8A5CACD21AF44EF879FD1DA9B685309"><enum>(a)</enum><header>Establishment of program</header><text>The Secretary of the Treasury may award demonstration project grants (including multiyear awards) to eligible entities to provide accounts to individuals who currently do not have an account with a financial institution. The account would be held in a federally insured depository institution.</text> </subsection>
<subsection id="HA71A45EEF6B4485498BB3BAFCDD0FBD6"><enum>(b)</enum><header>Priority</header><text>Priority shall be given to demonstration project proposals that provide accounts at low or no cost and—</text>
<paragraph id="H16064F9665434EA9AD082FA9264D5E5F"><enum>(1)</enum><text>that utilize new technologies such as the prepaid product to expand access to financial services, in particular for persons without bank accounts, with low access to financial services, or low utilization of mainstream financial services,</text> </paragraph>
<paragraph id="H9AF7AA3EBC65425C959989F53BD2FAD4"><enum>(2)</enum><text>that promote the development of new financial products and services that are adequate to improve access to wealth building financial services, which help integrate more Americans into the financial mainstream,</text> </paragraph>
<paragraph id="H465AD92F4EEE4396846D23E05F320738"><enum>(3)</enum><text>that promote education for these persons and depository institutions concerning the availability and use of financial services for and by such persons, and</text> </paragraph>
<paragraph id="H4F016E76A5E5435E8AC5F74331BE3C7D"><enum>(4)</enum><text>that include other such activities and projects as the Secretary may determine are consistent with the purpose of this section.</text> </paragraph></subsection>
<subsection id="H2AD38CA1C48F41ED837885E266DA1F2B"><enum>(c)</enum><header>Eligible entities</header>
<paragraph id="HED2DF580814C424FB7DC0DDA9EC1A2BB"><enum>(1)</enum><header>In general</header><text>An entity is eligible to receive a grant under this section if such an entity is—</text>
<subparagraph id="H4A8F511E29DD4A3DA226AF0223B2E64F"><enum>(A)</enum><text>an organization described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from tax under section 501(a) of such Code,</text> </subparagraph>
<subparagraph id="H3F7C06FFB87849898E31242787A8AC94"><enum>(B)</enum><text>a federally insured depository institution,</text> </subparagraph>
<subparagraph id="HACB64B088E69465090E0D744AAEBCE85"><enum>(C)</enum><text>an agency of a State or local government,</text> </subparagraph>
<subparagraph id="HA87F9A8826894C77884241393A119265"><enum>(D)</enum><text>a community development financial institution,</text> </subparagraph>
<subparagraph id="H7C9A2DFE3AE94BBB915436C26DB12436"><enum>(E)</enum><text>an Indian tribal organization,</text> </subparagraph>
<subparagraph id="HDD9AD6A0DE4042A89A1C9F14FD8A3D8D"><enum>(F)</enum><text>an Alaska Native Corporation,</text> </subparagraph>
<subparagraph id="H17D4A9C2A1F8402B810B150B6129CF1D"><enum>(G)</enum><text>a Native Hawaiian organization,</text> </subparagraph>
<subparagraph id="H0DCA5B4BBEC44895B3287250D300DE01"><enum>(H)</enum><text display-inline="yes-display-inline">an organization described in 501(c)(5), and exempt from tax under section 501(a), of such Code,</text> </subparagraph>
<subparagraph id="H113513530E0B4C179DF11C99F07C77C9"><enum>(I)</enum><text>a nonbank financial service provider, or</text> </subparagraph>
<subparagraph id="H9721BFF1A2784A868CC8221D80827D38"><enum>(J)</enum><text>a partnership comprised of 1 or more of the entities described in the preceding subparagraphs.</text> </subparagraph></paragraph>
<paragraph id="H68441BCCA06743A3B81D971F068A80A5"><enum>(2)</enum><header>Definitions</header><text>For purposes of this section—</text>
<subparagraph id="HA5FD2A4F422F45528BEA137257307A87"><enum>(A)</enum><header>Federally insured depository institution</header><text>The term <term>federally insured depository institution</term> means any insured depository institution (as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)) and any insured credit union (as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752)).</text> </subparagraph>
<subparagraph id="H48491D71E9BC4181A573454A08827D69"><enum>(B)</enum><header>Community development financial institution</header><text>The term <term>community development financial institution</term> means any organization that has been certified as such pursuant to section 1805.201 of title 12, Code of Federal Regulations.</text> </subparagraph>
<subparagraph id="HAAC0399180F6482EA6CFF691017B2CC3"><enum>(C)</enum><header>Alaska native corporation</header><text>The term <term>Alaska Native Corporation</term> has the same meaning as the term <term>Native Corporation</term> under section 3(m) of the Alaska Native Claims Settlement Act (43 U.S.C. 1602(m)).</text> </subparagraph>
<subparagraph id="H58821297E6E44C32A9F89D9F37110DF5"><enum>(D)</enum><header>Native hawaiian organization</header><text>The term <term>Native Hawaiian organization</term> means any organization that—</text>
<clause id="HC0BC58B803A9413DA274D70F058410DE"><enum>(i)</enum><text>serves and represents the interests of Native Hawaiians, and</text> </clause>
<clause id="HFE7A7E762D444B7F9FF20CF066203E80"><enum>(ii)</enum><text>has as a primary and stated purpose the provision of services to Native Hawaiians.</text> </clause></subparagraph>
<subparagraph id="H819B3984AE1240BDA2A87C09C329BF32"><enum>(E)</enum><header>Labor organization</header><text>The term <term>labor organization</term> means an organization—</text>
<clause id="HA4A6A6CB436E4043961042C0EC0DEE18"><enum>(i)</enum><text>in which employees participate,</text> </clause>
<clause id="HBD6BD79363904C62892AE85322702E4A"><enum>(ii)</enum><text>which exists for the purpose, in whole or in part, of dealing with employers concerning grievances, labor disputes, wages, rates of pay, hours of employment, or conditions of work, and</text> </clause>
<clause id="HE31B1AF842D34C0794CCD663FCA0AA4E"><enum>(iii)</enum><text>which is described in section 501(c)(5) of the Internal Revenue Code of 1986.</text> </clause></subparagraph>
<subparagraph id="HE90FF8FFB7874446A56FD09F6368119C"><enum>(F)</enum><header>Nonbank financial service provider</header><text>The term <term>nonbank financial service provider</term> mean an entity that engages in financial services activities, as authorized under the Federal Reserve Board, 12 Code of Federal Regulations Part 225, Regulation Y.</text> </subparagraph></paragraph></subsection>
<subsection id="H3181120DA1F44847A759D27615DB339F"><enum>(d)</enum><header>Application</header><text>An eligible entity shall submit an application to the Secretary of the Treasury in such form and containing such information as the Secretary may require.</text> </subsection>
<subsection id="HAA2EC86C64E942EE83E51FC036FD094D"><enum>(e)</enum><header>Evaluation and report</header><text>For each fiscal year in which a grant is awarded under this section, the Secretary of the Treasury shall submit a report to Congress containing a description of the activities funded, amounts distributed, and measurable results, as appropriate and available.</text> </subsection>
<subsection id="H816B674800AD4537BBBF1204F15A1086"><enum>(f)</enum><header>Power and authority of the Secretary</header>
<paragraph id="H87AA077C387043B9858C54FB75ED769F"><enum>(1)</enum><header>Assistance</header><text>Subject to appropriations, the Secretary of the Treasury may provide financial and technical assistance to awardees for expanding the distribution of financial services, including through financial services electronic networks.</text> </paragraph>
<paragraph id="H21543EA72B024FA29A46DB8F61557B39"><enum>(2)</enum><header>Research and development</header><text>The Secretary of the Treasury may conduct or support such research and development as the Secretary considers appropriate in order to further the purpose of this section, including the collection of information about access to financial services.</text> </paragraph>
<paragraph id="H14434A2D0ADF4124856CA3BB4D4CF4B8"><enum>(3)</enum><header>Regulations</header><text>The Secretary of the Treasury is authorized to promulgate regulations to implement and administer the program under this section.</text> </paragraph></subsection>
<subsection id="HBBE9D46471C74B0D80BE96A5231E3D4A"><enum>(g)</enum><header>Study on Delivery of Tax Refunds</header>
<paragraph id="HA1B8877B36544EB5A3BF3ABF1C2F4724"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary of the Treasury, in consultation with 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.</text> </paragraph>
<paragraph id="H065A07359EEB47AE8F79A75D3FF8C979"><enum>(2)</enum><header>Report</header><text>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 paragraph (1).</text> </paragraph></subsection></section>
<section id="HCA1F0E1C295345BD81B100761BE95823"><enum>308.</enum><header>Additional studies</header>
<subsection id="H396C4FFFCBA146EDACBE8797367978C2"><enum>(a)</enum><header>Study on accelerated processing of information returns</header>
<paragraph id="H394ECAAC19464DDC84232086562A226E"><enum>(1)</enum><header>Findings</header><text>Congress finds the following:</text>
<subparagraph id="H0F4D784C0DE6436CAECADDDC3EE20A8E"><enum>(A)</enum><text>Under current procedures, the Internal Revenue Service processes income tax returns before it processes most information returns, including Forms W–2, which report wages and tax withholding, and Forms 1099, which report interest, dividends, and other payments.</text> </subparagraph>
<subparagraph id="HEFD335A3D54342ACBDA756D9A2044258"><enum>(B)</enum><text>The sequence described in subparagraph (A) makes little logical sense.</text> </subparagraph>
<subparagraph id="HF33153F0AC1B4CB0AFD1D13C153BADF1"><enum>(C)</enum><text>From a taxpayer perspective, the sequence leads to millions of cases where taxpayers inadvertently make overclaims that the Internal Revenue Service does not identify until months later, exposing the taxpayer not only to a tax liability but to penalties and interest charges as well.</text> </subparagraph>
<subparagraph id="H3EADAF102EB14C19BC6107B2DC5C4CC0"><enum>(D)</enum><text>From the Federal Government’s perspective, this sequence creates opportunities for fraud and requires the Internal Revenue Service to devote resources to recovering refunds that should not have been paid and that it often cannot recover.</text> </subparagraph></paragraph>
<paragraph id="H7BBA358F902145DB8D8B9EFF79B9DF09"><enum>(2)</enum><header>Study</header><text>The Secretary of the Treasury, in consultation with the National Taxpayer Advocate, shall conduct a study to identify and recommend legislative and administrative changes that would enable the Internal Revenue Service to receive and process information reporting documents before it processes tax returns. In conducting the study, the Secretary shall consider, among other factors, the issues identified in the National Taxpayer Advocate’s 2009 Annual Report to Congress.</text> </paragraph>
<paragraph id="H778ABAA1D03D428D8275E24C2BBB7F43"><enum>(3)</enum><header>Report</header><text>Not later than 1 year after the date of enactment of this Act, the Secretary of the Treasury shall submit a report to Congress describing the results of the study conducted under paragraph (2).</text> </paragraph></subsection>
<subsection id="HBF76DE03E4B34086B14FEA4DE31C0096"><enum>(b)</enum><header>Study on the Effectiveness of Collection Alternatives</header>
<paragraph id="HA670BBE368F946E894574B3419D305B"><enum>(1)</enum><header>In general</header><text>The Secretary of the Treasury, in consultation with the National Taxpayer Advocate, 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.</text> </paragraph>
<paragraph id="H3D4A81E89645421BB5000768D5CDFC7D"><enum>(2)</enum><header>Report</header><text>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 paragraph (1).</text> </paragraph></subsection></section>