1.
(a)This Act may be cited as the Taxpayer Bill of Rights Act of
2012
.
(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. Modifications to lien notice filing
procedures.
Sec. 302. Modification of requirements relating to tax lien
information contained in consumer credit reports.
Sec. 303. Ban on audit insurance.
Sec. 304. Public awareness.
Sec. 305. Clarification of taxpayer assistance order
authority.
Sec. 306. Taxpayer advocate directives.
Sec. 307. Improved services for taxpayers.
Sec. 308. Taxpayer access to financial
institutions.
Sec. 309. Additional studies.
Sec. 310. De novo tax court review of innocent spouse relief
determinations.
<enum>I</enum><header>Taxpayer Rights
and Obligations </header>
<section id="H209CCC1FCE0A4B5F9895AD5B8D447B53"><enum>101.</enum><header>Statement of
taxpayer rights and obligations</header>
<subsection id="H58E6BE8DF0294AB7A0223976DB4684AF"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Chapter 77 is amended
by adding at the end the following new section:</text>
<quoted-block display-inline="no-display-inline" id="H838E214C9E1C4352BC1E0CA6E2158370" style="OLC">
<section id="HD49565B3467B4132845839BD945B9D87"><enum>7529.</enum><header>Statement of
taxpayer rights and obligations</header>
<subsection id="H7BEABF5871DE48F399E252CF39114376"><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="H8B3510B81EB546E29278BC308D76E032"><enum>(b)</enum><header>Statement of
rights and obligations</header><text>The statement of rights and obligations is
as follows:</text>
<paragraph id="HAF46694669A346C1BF9EEA172D6E3131"><enum>(1)</enum><header>Taxpayer
rights</header>
<subparagraph id="H1FD9379DC6604B3CA0D2367DB4F3F69E"><enum>(A)</enum><text>Right to be
informed (including adequate legal and procedural guidance and information
about taxpayer rights).</text>
</subparagraph><subparagraph id="H2D15345FED72491BAE8F20F1D9111355"><enum>(B)</enum><text>Right to be
assisted.</text>
</subparagraph><subparagraph id="H53898D5D02E64BC5A9DDB071FDF77D86"><enum>(C)</enum><text>Right to be
heard.</text>
</subparagraph><subparagraph id="H25B16313A4204EAB8B1A6D26B1769014"><enum>(D)</enum><text>Right to pay no
more than the correct amount of tax.</text>
</subparagraph><subparagraph id="H5188A9FBC8D441728F3530C9B010C8A4"><enum>(E)</enum><text>Right of appeal
(administrative and judicial).</text>
</subparagraph><subparagraph id="H53D11812428840D9A67BBEB8C3188493"><enum>(F)</enum><text>Right to certainty
(including guidance, periods of limitation, no second exam, and closing
agreements).</text>
</subparagraph><subparagraph id="HE2A081274F1243C2811A738E64D1E536"><enum>(G)</enum><text>Right to privacy
(including due process considerations, least intrusive enforcement action, and
search and seizure protections).</text>
</subparagraph><subparagraph id="H9BB20D1FD52A48DBA21669B3713D72D1"><enum>(H)</enum><text>Right to
confidentiality.</text>
</subparagraph><subparagraph id="H82F6EC7962E049D1B5EE50F3FE1444E9"><enum>(I)</enum><text>Right to appoint a
representative in matters before the Internal Revenue Service.</text>
</subparagraph><subparagraph id="HA0AA2DDEF5A5460283653057D21EB0A2"><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="H7BE0DEA7729446449447334499601658"><enum>(2)</enum><header>Taxpayer
obligations</header>
<subparagraph id="H7692AF0BFAB7441D906A41DC6B6250BD"><enum>(A)</enum><text>Obligation to be
honest.</text>
</subparagraph><subparagraph id="HDA4C97891DEE466C8B7D8D00605575E5"><enum>(B)</enum><text>Obligation to be
cooperative.</text>
</subparagraph><subparagraph id="H74FE69EB72E64F479D75829998D702C4"><enum>(C)</enum><text>Obligation to
provide accurate information and documents on time.</text>
</subparagraph><subparagraph id="H9EA7125835E44B21878770EDF7FE211C"><enum>(D)</enum><text>Obligation to keep
records.</text>
</subparagraph><subparagraph id="H3CCE8A1B6AEE4654984F98AFAAA2FE0C"><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="HB5D95B49281C46A5AB79BB92DA37DAFE"><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>
<quoted-block display-inline="no-display-inline" id="H18DB0B1CC5A64F8294107F25AC29E3DE" style="OLC">
<toc container-level="quoted-block-container" idref="H838E214C9E1C4352BC1E0CA6E2158370" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry idref="HD49565B3467B4132845839BD945B9D87" level="section">Sec. 7529. Statement of taxpayer rights and
obligations.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H0E639318CB1744A6BE348E3C14099AE4"><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="HC33AC527557747DEB15003417923CC68" section-type="subsequent-section"><enum>201.</enum><header>Programs for the
benefit of low-income taxpayers</header>
<subsection id="H3A25168598F24939BDFB4269B08BB37A"><enum>(a)</enum><header>Volunteer income
tax assistance plus</header><text>Chapter 77 is amended by inserting after
section 7526 the following new section:</text>
<quoted-block id="H462C53FFA175457FBC06A65E7DAC2362" style="OLC">
<section id="H94CE1B0198AC498A9A2252778C6E5BC7"><enum>7526A.</enum><header>Volunteer
income tax assistance plus</header>
<subsection id="H444A626D8FDD446FA0BEF18EB625CCE0"><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="H2126F6BABC74442E947A026B8838FF58"><enum>(b)</enum><header>Definitions</header><text>For
purposes of this section—</text>
<paragraph id="H4E160192421F4D0487CBA813C76F9F4D"><enum>(1)</enum><header>Qualified return
preparation program</header>
<subparagraph id="H91EC39EA997A435FBF46E4B9B871C6A9"><enum>(A)</enum><header>In
general</header><text>The term <term>qualified return preparation
program</term> means a program—</text>
<clause id="H99E9E466B7304D028ACACB9F0F65B1CD"><enum>(i)</enum><text>which does not
charge taxpayers for its return preparation services,</text>
</clause><clause id="H488BB305A56340B6B5F39C1269C4BD72"><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,</text>
</clause><clause id="H1EDE39FBCBA14743BD0BE808F2A7DAE4"><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, and</text>
</clause><clause id="H48C97E900ADA4D5BB7277C326789A3D6"><enum>(iv)</enum><text display-inline="yes-display-inline">which may establish procedures to—</text>
<subclause id="H523FCFB5664049CCB162D2D0CD2CC0A2"><enum>(I)</enum><text>provide taxpayers
with training on preparation of their own returns, and</text>
</subclause><subclause id="H610FE0021F5B4BB996997745F9FDC8CA"><enum>(II)</enum><text>provide
assistance from the volunteers for taxpayers who prepare and file their own tax
returns using computer equipment and tax preparation software provided by the
program.</text>
</subclause></clause></subparagraph><subparagraph id="H36247EAE886D4D13AFB69BB8BF3C3773"><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="HFACE7AB21FC44ABF9A8417EBA997E962"><enum>(2)</enum><header>Program</header><text>The
term <term>program</term> includes—</text>
<subparagraph id="HFE628D4B681A47ECBA7B99081FA99FA6"><enum>(A)</enum><text display-inline="yes-display-inline">a program at an institution of higher
education which—</text>
<clause commented="no" id="H9F784B832FAE4D3BB1A25B0C4F32061C"><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="H119A0283CC104B19B5EE9A287A21B9C0"><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="H5C4EFDA790BD4FB5ABB9C59CB1976259"><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="H129BAE766E4940BA80D9C67217B6633D"><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="H29D17FF90C674434A81DD185A9B10648"><enum>(D)</enum><text>a county or
municipal government agency;</text>
</subparagraph><subparagraph id="H62D452C820CC4AA4AA31BEBA46582E5F"><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="H28667BAB479D420D8C3A29A89F4BCB05"><enum>(F)</enum><text>a section
501(c)(5) organization;</text>
</subparagraph><subparagraph id="H516B3D80AC324F5DA677E2E77B8F70F2"><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="HA8018AE8ACA040B687C63159A8012128"><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="H9602C9C1619A491C8A0F7707B5CCED7B"><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="H0F1852990F004E3786DF76D5E63BA620"><enum>(c)</enum><header>Special Rules
and Limitations</header>
<paragraph id="H1383F3D0E809481E8D66AC39A1CDB1BA"><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="HFC6C633F4CD34594B360C20CCB5B650C"><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="H90CF1E9B4F9C44898A1E0D6F2F47EC22"><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="H2C01E4124DB2423DB63381D55DBC805A"><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><paragraph id="id3BF169B95A2C47E2A3B9B284E14F2606"><enum>(5)</enum><header>Services
related to tax return preparation</header><text>A qualified return preparation
program receiving a grant under this section may use such grant to provide
services related to financial literacy, asset development, and the
establishment of savings accounts in connection with tax return preparation
services performed through the
program.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HC5BCA6127D07401EA12A9735BCC0F1F0"><enum>(b)</enum><header>Low-Income
taxpayer clinics</header>
<paragraph id="H15B51142F74A4ABBB299A833775358C7"><enum>(1)</enum><header>Increase in
authorized grants</header><text>Paragraph (1) of section 7526(c) is amended by
striking <quote>$6,000,000</quote> and inserting
<quote>$20,000,000</quote>.</text>
</paragraph><paragraph id="HD090663AA1D94EDFBE3D0DBD6CAC27F6"><enum>(2)</enum><header>Use of grants
for overhead expenses prohibited</header>
<subparagraph id="HEC8B5817A0F24B89B22898EB46EEEF08"><enum>(A)</enum><header>In
general</header><text>Section 7526(c) is amended by adding at the end the
following new paragraph:</text>
<quoted-block id="H142138292DB74035B3A5F51E9C5C62CE" style="OLC">
<paragraph id="H718755EA463E4C9A86CFA8778CF6E2DD"><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="HD607F350348146018879DEAAF486EDAF"><enum>(B)</enum><header>Conforming
amendments</header><text>Section 7526(c)(5) is amended—</text>
<clause id="H2E6FCB71A5C64959B52877CEC3E11E99"><enum>(i)</enum><text>by
inserting <quote>qualified</quote> before <quote>low-income</quote>, and</text>
</clause><clause id="H5E8B428E3C2443A1BB5C7C266A796576"><enum>(ii)</enum><text>by
striking the last sentence.</text>
</clause></subparagraph></paragraph><paragraph id="H62A8D1407ADE44F3839E9C4E081E61E9"><enum>(3)</enum><header>Promotion of
clinics</header><text>Subsection (c) of section 7526, as amended by paragraph
(2), is amended by adding at the end the following new paragraph:</text>
<quoted-block id="H4FB0585C683B4976B3885CBF29591156" style="OLC">
<paragraph id="H59CF95B2D7454A72825DEB91844CC84F"><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="H7C4793E319004D76A52DAC6AC2CB94DC"><enum>(4)</enum><header>IRS referrals to
clinics</header><text>Subsection (c) of section 7526, 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="HBC6CE79EA74D4CBFAF5B29D93D150AF8" style="OLC">
<paragraph id="HE3DAF63F8A1F46B5932D2714F6C482BA"><enum>(8)</enum><header>IRS
referrals</header><text display-inline="yes-display-inline">Notwithstanding any
other provision of law, the Secretary may refer taxpayers to specific qualified
low-income taxpayer clinics receiving funding under this
section.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H51D504BB7FF041AAA84D273E4566AE33"><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 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="H915FCD44552D498A8ED2A6D9E25B191E"><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 is amended by adding at the end the following new sentence:</text>
<quoted-block display-inline="no-display-inline" id="idD889A24056214C9E91E120E3B2A3B4CE" style="OLC">
<quoted-block-continuation-text quoted-block-continuation-text-level="subsection">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><paragraph id="HBEC6885655C549429B94D6A15BAB61AE"><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="idC3D4095BDB6A4AF199AA20FE5A93863A" style="OLC">
<quoted-block-continuation-text indent="paragraph" 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="HB68D444ADE2B4B599017516885E2E4BE"><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>
<quoted-block display-inline="no-display-inline" id="H7259AE1F437649E18103510B43D0388E" style="OLC">
<toc container-level="quoted-block-container" idref="H462C53FFA175457FBC06A65E7DAC2362" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry idref="H94CE1B0198AC498A9A2252778C6E5BC7" level="section">Sec. 7526A. Volunteer income tax assistance
plus.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H3ECBAB71F0224E949873DAC5BF73D65F"><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="HE4BDBECCC0464CF4982EBC6A4CA9CF8C"><enum>202.</enum><header>Regulation of
Federal income tax return preparers</header>
<subsection id="H3AA61DF59B804878A044755E19C871A7"><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="H650FE9E31DEE449DAAB3648D2ECE0FEB"><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="HD1353D85F6574B58A6551CAB4838EC23"><enum>(c)</enum><header>Penalty for
unauthorized preparation of returns</header>
<paragraph id="H83C39D4784784238AA7ED731E9D38C56"><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="HAB2B30044481414ABFEA392E644799D1"><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="H59D5A0383F264A30ABBA822FE30B9FB8"><enum>(d)</enum><header>Definitions</header><text display-inline="yes-display-inline">For purposes of this section—</text>
<paragraph id="HD44DF8C4DB4A49F3A8607CFCA41C0390"><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="HB27C4CBBB08E48528A6492CE4E7C0DEB"><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="HC850E519FEB141B6B709AC95C3281D33"><enum>(e)</enum><header>Public awareness
campaign</header><text>The Secretary shall conduct a public information and
consumer education campaign, utilizing paid advertising—</text>
<paragraph id="HEA04C9D07D8E472E841BDC6179E46F9A"><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="H96F4927D03684D7DAD9D111D53ED7670"><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></section><section id="H92371EABD9544457A10A13AA00EADCF5"><enum>203.</enum><header>Refund delivery
products</header>
<subsection id="H4B8229B2122D49DA81CF71BFECF50356"><enum>(a)</enum><header>In
general</header><text>Chapter 77, as amended by section 101, is amended by
adding at the end the following new section:</text>
<quoted-block id="H7BF58CBA0B5A4C3289F433ED24CEC595" style="OLC">
<section id="H1E55F86D4E4741FEA5EDD0A886D2EE2D"><enum>7530.</enum><header>Refund
delivery products</header>
<subsection id="HACFD0CFBFCBC41EFB811DAEF0D60847B"><enum>(a)</enum><header>Registration</header>
<paragraph id="H8599E391D2DF4F7E8B56E9531A811215"><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="H148546F89B53420DB51F65EB8F394292"><enum>(2)</enum><header>Registration
requirements</header><text>A registration shall under paragraph (1) shall
include—</text>
<subparagraph id="HB7AA89B814334F83A115D078380AD1D4"><enum>(A)</enum><text>the name, address,
and TIN of the refund delivery product facilitator, and</text>
</subparagraph><subparagraph id="H10ED237C9DE44337BC82A612AE046E3A"><enum>(B)</enum><text>the fee schedule
of the facilitator for the year.</text>
</subparagraph></paragraph><paragraph id="H0EFD6CC9905C447F85A4980E2FAC2D1F"><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="H85C9DC9269BA4ED6B28D5037F1EE1961"><enum>(b)</enum><header>Disclosure
requirements</header>
<paragraph id="HBF4E3B72872F49E2A6138BF5F3DBC7B6"><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="H895F21A6CAD54A8BB24329A7ECD0C402"><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="HEC61607B41014680B53B71F8A5CD1EE9"><enum>(A)</enum><text>sets forth options
available for receiving tax refunds, presented from least expensive to most
expensive, and</text>
</subparagraph><subparagraph id="HE88553F8765E43BC9D27E3C96740DB45"><enum>(B)</enum><text>discusses
short-term credit alternatives to utilizing refund delivery products.</text>
</subparagraph></paragraph><paragraph id="H5852C5CB7891451B836127F24A960164"><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="HCD9E67BC17004BA8BA1D01F6263023B2"><enum>(A)</enum><text>in the case of a
refund delivery product which is a refund loan—</text>
<clause id="H24245CEEA3D84F05B7A64D9D2B393E92"><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="HF66330AB9DE34CF5AA548D96AD140A6F"><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="HAD211EC8ED0444679C1D24ACB273E6BE"><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="HF2AF50BCAE844F0394EA86DEDC249C93"><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="HFC37288D2E324EFA91A1DC1BFC6C8904"><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="HC7F4B2950227467EAB1EEF64A3B2DB26"><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="HF2A2AB323ECC46FFB2A5CE5412F0E6BC"><enum>(A)</enum><text>a copy of the fee
schedule of the refund delivery product facilitator,</text>
</subparagraph><subparagraph id="H7E33EF77183C4D7EA42523E0A31F33D3"><enum>(B)</enum><text>in the case of a
refund delivery product which is a refund loan—</text>
<clause id="HFFDE6AC9A4E345ACAEE2EDBD91940733"><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="H64BA054B887547E6B519D7A016E10DB3"><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="H8970A941EC59455DBE7851C5F2302EF0"><enum>(I)</enum><text>whether such a
loan is appropriate for the applicant, and</text>
</subclause><subclause id="H652922A574334BB59C03EB73D2C9BC0D"><enum>(II)</enum><text>other sources of
credit,</text>
</subclause></clause></subparagraph><subparagraph id="HB3D5BF05B2DD4BBEB119D0B3B60B464F"><enum>(C)</enum><text>typical fees and
interest charges if a refund is not paid or delayed,</text>
</subparagraph><subparagraph id="H7800E1D1CF664FA39469E487B632F030"><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="HF727AF676BCA47598427DF06440E86E8"><enum>(E)</enum><text>administrative
costs and any other amounts.</text>
</subparagraph></paragraph><paragraph id="H1C8F374B7DBF47A1A101850EB737098F"><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="H2B0A2ECA5BE0407A8524439927780850"><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="H6202E8A8577D457FB3327C6F6DDA8843"><enum>(c)</enum><header>Penalty</header>
<paragraph id="H2C504A1C171E40AE9775D8CE93AB7C92"><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="HF8CF4738352040B9BE25017B0F08CF5B"><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="HCEC6479180F94DB98B4BEDDE067D6D89"><enum>(A)</enum><text>$1,000, and</text>
</subparagraph><subparagraph id="H8D9B253BC0B646D9BA83348F55D000D4"><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="HA5009FA4C456478CAC3D4A93FB08C146"><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="H81B991A3EB91458BB0833D1CCA996B92"><enum>(d)</enum><header>Conduct</header>
<paragraph id="H5B8D833B2702424092C7B156F2D67A6E"><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="HFCC4FD1A5D09488A93C98AE5F97E3D09"><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="H0A43597DD2F6436E833581F83BD94C10"><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 acknowledgment 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="H6FA704BCC09F489FBAC774B9D58EC37A"><enum>(f)</enum><header>Definitions</header><text>For
purposes of this section—</text>
<paragraph id="HC1285AB1DDD44C23A815438B9E770DAA"><enum>(1)</enum><header>Refund delivery
product facilitator</header>
<subparagraph id="H5851FECE7B904AA191DA12EC73C25B56"><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="H3EC10041E6D44BD5ADFD024A6FAB37AA"><enum>(i)</enum><text>solicits for,
processes, receives, or accepts delivery of an application for a refund
delivery product, or</text>
</clause><clause id="HF271CB76E8AF45C682662240FE2B2C8E"><enum>(ii)</enum><text>facilitates the
making of a refund delivery product in any other manner.</text>
</clause></subparagraph><subparagraph id="H60D3B74224794F3F95B85FC6D50BD3CD"><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="H911DEAF574F1440B89C2934C4FF978EF"><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="HC98D1311C44C4B71B555A3C902E05075"><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="H31E223D5163C40159A2B36437B20243C"><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="HE603F97CB7964A318BC264A4445BA0C1"><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="H5D3C681C59194D6E9559EA388D6B47FE"><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="H872940F9AAF24FD9AE644EF12E8E4722"><enum>(g)</enum><header>Regulations</header>
<paragraph id="H5E753B4807F04AC3BE5DCC58AD1EC526"><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="HB46AB5D49ED74328A3F77D94942EF1D8"><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="HC6DC69DFD4E647288B29878FBBFA2D5D"><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="HBF0CFA15AAEE432BA2732D23D15EFDE1"><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="H532529408FF14756A329D07B138B97E7"><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="H4A9B5A67D39D470BB0E876D64B10D895"><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="H6976996709444F1DADB469C1367D852C"><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="H0DA596EDCC424AEAA36004C26F3AD22F" 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="H30E1BAD4B9834EE282234091DD402BC6"><enum>(d)</enum><header>Effective
dates</header>
<paragraph id="H12D1AD9665114D1D92D480F9C2D05226"><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="HFDC6E52681DA43188EE509A5698611C6"><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="HC502E3A813E249DA866B8BAC0C7AED52"><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="HF76CACBE3FA744068CBDEA31E6F2F59C"><enum>204.</enum><header>Preparer
penalties with respect to preparation of returns and other submissions</header>
<subsection id="H6FE436DBF68B40549B07E34E9D267137"><enum>(a)</enum><header>Inclusion of
other submissions in penalty provisions</header>
<paragraph id="HF03F10CAB29E4B95871EADAB1527CF5F"><enum>(1)</enum><header>Understatement
of taxpayer’s liability</header>
<subparagraph id="HAAD5A79DA47A416BB89E21021764F7CD"><enum>(A)</enum><header>In
general</header><text>Section 6694 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="H72DBFABCE7944D0DA98A460B242E90F5"><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="H4DFA775366E04954B89F5FEA0C073DA7"><enum>(2)</enum><header>Increase in
penalty in case of gross misconduct</header><text>Subsection (b) of section
6694 is amended by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HC81FDB24055145B3B0A4A95114CC4533" style="OLC">
<paragraph id="H80A973DF997E4632AA7314E42D040294"><enum>(4)</enum><header>Increase in
penalty in case of gross misconduct</header><text display-inline="yes-display-inline">In the case of an understatement to which
this section applies that is attributable to the tax return preparer’s making a
false or fraudulent return or claim for refund without the taxpayer’s
knowledge, subsection (a) shall be applied by substituting <quote>100 percent
of the amount of the understatement</quote> for <quote>50 percent of the amount
derived (or to be derived) by the tax return preparer with respect to the
return or claim</quote>. This penalty shall be in addition to any other
penalties provided by
law.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H3933C04F26D341F29BF3E0467E11A911"><enum>(3)</enum><header>Other assessable
penalties</header>
<subparagraph id="H37704A28D5114CAF829D7835A1567A2C"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 6695 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="H3F9ECB3558414D94B5999FCE23C99EC6"><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="HDB859965EAFB4273B9768ECE045E6880"><enum>(b)</enum><header>Increase in
certain other assessable penalty amounts</header>
<paragraph id="H388F8D50ADFD446B813398174B9E94B4"><enum>(1)</enum><header>In
general</header><text>Subsections (a), (b), and (c) of section 6695 are each
amended by striking <quote>$50</quote> and inserting
<quote>$1,000</quote>.</text>
</paragraph><paragraph id="H9EEB299BA9884621A4301F6A8E3D72C9"><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="HAA1CBDB3C3FD4EBB94E6002C4DE67BAF"><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="H8CD5A900AF26416FB09E5E5B2EA0EBD7" style="OLC">
<clause id="H59489E6B5E844378A82366BF8CE730F0"><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="HC8550CB84EF84353BF5AC829E9D4C797"><enum>(d)</enum><header>Additional
certification on documents other than returns</header>
<paragraph id="HC42E18823603419B924380FA485B9541"><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="H31ED7D6DAE1D43BCB1F15F5F4E80AE78"><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="H1A62AE4A0A41419C9AF1FFA4E9D46F4E"><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="H017C85BB2FA54C6E9B89553C23729F95"><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="H808AD0064AAF43ABB234AED3EFE5B8FF"><enum>205.</enum><header>Clarification
of enrolled agent credentials</header>
<subsection id="H174E4634EEF344B6B684304520B1D263"><enum>(a)</enum><header>In
general</header><text>Chapter 77, as amended by sections 101 and 203, is
amended by adding at the end the following new section:</text>
<quoted-block id="H2FC3E6BD58314C2EA629E757FC4AE959" style="OLC">
<section id="HF0AE7CC21561410CB45096A2546CD08B"><enum>7531.</enum><header>Enrolled
agents</header>
<subsection id="HD5ED7FD4E82D4CF5B7788857A661553F"><enum>(a)</enum><header>In
general</header><text>The Secretary may prescribe such regulations as may be
necessary to regulate the conduct of enrolled agents in regards to their
practice before the Internal Revenue Service.</text>
</subsection><subsection id="H529106A3B6694EFD8D4832B0E1AAF2A5"><enum>(b)</enum><header>Use of
credentials</header><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 <term>enrolled agent</term>, <term>EA</term>,
or
<term>E.A.</term>.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H253416AF674C4B6DA1ED0A368419707B"><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>
<quoted-block id="H1578012011DD4851B78524B7984AE51A" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 7531. Enrolled
agents.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HAB35359E5143432987CD39451AA572E2"><enum>(c)</enum><header>Prior
regulations</header><text>The authorization to prescribe regulations under the
amendments made by this section may not be construed to have any effect on part
10 of title 31, Code of Federal Regulations, or any other related Federal rule
or regulation issued before the date of the enactment of this Act.</text>
</subsection><subsection id="H82BB709FEC5B44169B2E8C2CD0174766"><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><enum>III</enum><header>Improving
Taxpayer Services</header>
<section display-inline="no-display-inline" id="HB4E31237025C4B06B75D71E95965C7E7"><enum>301.</enum><header>Modifications
to lien notice filing procedures</header>
<subsection id="H3D997650108F4C3B9334A53D89E3D52F"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 6323 of the
Internal Revenue Code of 1986 is amended by adding at the end the following new
subsection:</text>
<quoted-block display-inline="no-display-inline" id="H7C5144717BD24C2985858D85FBAB1661" style="OLC">
<subsection id="H3A9D648FFA354A168C00548651AEAD49"><enum>(k)</enum><header>Required
procedures before filing notice of lien</header>
<paragraph id="H90351C760B85482681D72A8A2996B277"><enum>(1)</enum><header>Secretarial
determination</header>
<subparagraph id="H29EE1DE0CA9642AB99B6C2992B1C4008"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">The Secretary may not
file a notice of lien with respect to any taxpayer unless—</text>
<clause id="H03EDDB8D5FB9482FA0F7C046D1B00B8F"><enum>(i)</enum><text>the lien attaches
to distrainable property, and</text>
</clause><clause id="HF1B70FC3AFCA4C66B18FE58732BDB094"><enum>(ii)</enum><text display-inline="yes-display-inline">weighing all facts and circumstances
pertaining to the collection of a taxpayer’s delinquent tax assessment, the
Secretary determines that—</text>
<subclause id="H5DC8709155734C2285C97639DC90F5D9"><enum>(I)</enum><text>the benefit to the
Federal Government of the filing outweighs the harm to the taxpayer, and</text>
</subclause><subclause id="HE77CB7F5F56C4CF29313DEDD0896214E"><enum>(II)</enum><text>the filing will
not jeopardize the taxpayer’s prospective ability—</text>
<item id="H0121AB0C1E6E4B71951C22E6156D45CF"><enum>(aa)</enum><text>to
comply with the internal revenue laws, and</text>
</item><item id="H918CC1A4712541BDBF10DE19C03E8946"><enum>(bb)</enum><text display-inline="yes-display-inline">if the taxpayer is an otherwise viable
business taxpayer, to continue to secure funding to maintain business
operations.</text>
</item></subclause></clause></subparagraph><subparagraph id="H35FC08E173A54CB6855AE6093D8E2D90"><enum>(B)</enum><header>Factors to
consider</header><text display-inline="yes-display-inline">In making the
determination under subparagraph (A)(ii), the Secretary shall consider—</text>
<clause id="H5C0E2F3C963648B4B831A97A45F6AA29"><enum>(i)</enum><text display-inline="yes-display-inline">the amount due,</text>
</clause><clause id="HF7DA49347E514613A82A27962259E64E"><enum>(ii)</enum><text>the lien filing
fee,</text>
</clause><clause id="H9B3E1B95C02741A7A9DE4D7248E18FA9"><enum>(iii)</enum><text>the value of the
taxpayer’s equity in the property or rights to property,</text>
</clause><clause id="H884DACCE1A2344D3951CE2A859BBF7BD"><enum>(iv)</enum><text>the taxpayer’s
tax compliance history,</text>
</clause><clause id="HA5FC8DCDA0FF4684BDCF3DD41B03A808"><enum>(v)</enum><text>extenuating
circumstances, if any, that explain the delinquency, and</text>
</clause><clause id="H50BF7401A6C04CD6B35EB0C0E3D5AF31"><enum>(vi)</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>
</clause></subparagraph></paragraph><paragraph id="HE490A8F3AE0C4F72A2E2CA65627AB5A9"><enum>(2)</enum><header>Taxpayer appeal
prior to filing</header>
<subparagraph id="H50035041C8464A77A583714BF19D5096"><enum>(A)</enum><header>In
general</header><text>The Secretary may not file a notice of lien with respect
to any taxpayer unless—</text>
<clause id="HEC1D2E9C52D847EB86BBAD0F0284E0C2"><enum>(i)</enum><text>the Secretary
notifies the taxpayer that the Secretary has determined to file such a notice
with respect to the taxpayer, and</text>
</clause><clause id="HDD5512B702B544EDA8C5A55959AA2FA6"><enum>(ii)</enum><text>the taxpayer is
afforded an opportunity to appeal such determination to the Internal Revenue
Service Office of Appeals.</text>
</clause><continuation-text continuation-text-level="subparagraph">The
Secretary shall make reasonable efforts to provide the notice under
subparagraph (A) by telephone or direct personal contact.</continuation-text></subparagraph><subparagraph commented="no" id="H13AF648059B94635971919030D6D66F6"><enum>(B)</enum><header>Jeopardy notice
of lien</header><text display-inline="yes-display-inline">The Secretary may
file a notice of lien without regard to subparagraph (A)(ii) if the Secretary
finds that the collection of the tax would be in jeopardy if the notice of lien
is not filed before the conclusion of such an appeal.</text>
</subparagraph></paragraph><paragraph id="H6876B12C7EA54881933639F192C6A982"><enum>(3)</enum><header>Supervisory
approval required for liens in certain cases</header>
<subparagraph id="HF9E42C8770A4416783C8F7E991244927"><enum>(A)</enum><header>In
general</header><text>In any case to which this paragraph applies, a notice of
lien may not be filed unless the immediate supervisor (or such higher level
official as the Secretary may designate) of the individual making the initial
determination under paragraph (1) has individually reviewed and approved such
determination.</text>
</subparagraph><subparagraph id="H014FD6EAB0EB4FDDAF9E06055B34BF0C"><enum>(B)</enum><header>Cases to which
paragraph applies</header><text>This paragraph shall apply in any case in
which—</text>
<clause id="H88D67B97979948D3BE336ADC0D3327C0"><enum>(i)</enum><text>the collection of
the liability would create an economic hardship within the meaning of section
6343(a)(1)(D),</text>
</clause><clause id="HEE5DABD31840453295102E9B9F0785F4"><enum>(ii)</enum><text>the taxpayer has
no equity in assets, or</text>
</clause><clause id="H741238201E40409785904F02FA24DBA8"><enum>(iii)</enum><text>there has been
no personal contact with the taxpayer to discuss collection alternatives,
including an offer in compromise and partial payment installment
agreement.</text>
</clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H7F56E75AF8714D9486A746F88CFA6C9B"><enum>(b)</enum><header>Jeopardy notice
of lien</header>
<paragraph id="H4C6BE02D7F8C453B93411F0E0E02E511"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Subparagraph (A) of
section 7429(a)(1) of such Code is amended by inserting after <quote>or
6862,</quote> the following: <quote>no notice of lien may be filed pursuant to
section 6323(k)(2)(B),</quote>.</text>
</paragraph><paragraph id="HA729DBA1227049D19FFF806AFA951179"><enum>(2)</enum><header>Redetermination
by Secretary</header><text>Paragraph (3) of section 7429(a) of such Code is
amended by striking <quote>or</quote> at the end of subparagraph (A), by
redesignating subparagraph (B) as subparagraph (C), and by inserting after
subparagraph (A) the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="HF26E66FEAB3742C9A6D38D86ED6DA22D" style="OLC">
<subparagraph id="H39E8B39C2737401E837D85C3340A30D9"><enum>(B)</enum><text display-inline="yes-display-inline">whether or not the filing of the notice of
lien pursuant to section 6323(k)(2)(B) is reasonable under the circumstances,
or</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HF804D4904A3949C19CC1236FAB6BB3A9"><enum>(3)</enum><header>Redetermination
by Tax Court</header><text>Paragraph (3) of section 7429(b) of such Code is
amended by striking <quote>or</quote> at the end of subparagraph (A), by
redesignating subparagraph (B) as subparagraph (C), and by inserting after
subparagraph (A) the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H1111488E857F457AA6C29978C3DBE137" style="OLC">
<subparagraph id="HE79E746D08384A0693858AE75C505F99"><enum>(B)</enum><text display-inline="yes-display-inline">whether or not the filing of the notice of
lien pursuant to section 6323(k)(2)(B) is reasonable under the circumstances,
or</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HFE1DD7BD672C47E880305C1DBD55FEE2"><enum>(4)</enum><header>Conforming
amendments</header>
<subparagraph id="H5D4433D2841F47D381FA4CFE3704CA4C"><enum>(A)</enum><text>The heading for
section 7429 of such Code is amended by inserting <quote><header-in-text level="section" style="OLC">, notice of lien filing,</header-in-text></quote>
after <quote><header-in-text level="section" style="OLC">levy</header-in-text></quote>.</text>
</subparagraph><subparagraph id="HFAF2775016504BEEA55BA60CAD7ADEC5"><enum>(B)</enum><text display-inline="yes-display-inline">Subparagraphs (A) and (B) of section
7429(a)(1) of such Code are each amended by striking <quote>assessment or
levy</quote> each place it appears and inserting <quote>assessment, notice of
lien filing, or levy</quote>.</text>
</subparagraph><subparagraph id="H8B915EB607C64989884B4ECDE0D141E3"><enum>(C)</enum><text>Subparagraph (B)
of section 7429(b)(2) of such Code is amended by striking <quote>assessment or
levy</quote> and inserting <quote>assessment, notice of lien filing, or
levy</quote>.</text>
</subparagraph><subparagraph id="H0EBBE889C2224D3E86E7A76C772E8ADF"><enum>(D)</enum><text>Paragraph (4) of
section 7429(b) of such Code is amended—</text>
<clause id="H73F3FFC6C9EB4CFB8A2DEBEA09100D2D"><enum>(i)</enum><text>by
inserting <quote>that the filing of such notice of lien is
unreasonable,</quote> after <quote>that the making of such levy is
unreasonable,</quote>, and</text>
</clause><clause id="H547CCB53D430480FA56EF93EF07096A3"><enum>(ii)</enum><text>by
inserting <quote>to withdraw such notice of lien,</quote> after <quote>to
release such levy,</quote>.</text>
</clause></subparagraph><subparagraph id="H823BB18B9809411ABED402072424017F"><enum>(E)</enum><text>Paragraph (1) of
section 7429(g) of such Code is amended—</text>
<clause id="HCF5EF2D8FBF043409042B372DC4CF7F7"><enum>(i)</enum><text>by
inserting <quote>, the filing of a notice of lien pursuant to section
6323(k)(2)(B),</quote> after <quote>the making of a levy described in
subsection (a)(1)</quote>, and</text>
</clause><clause id="H389857955CE74B009BD77A0277DEF1CC"><enum>(ii)</enum><text>by
inserting <quote><header-in-text level="paragraph" style="OLC">notice of lien
filing</header-in-text></quote> after <quote><header-in-text level="paragraph" style="OLC">Reasonableness of</header-in-text></quote> in the heading
thereof.</text>
</clause></subparagraph></paragraph></subsection><subsection id="HC1787B277869426D857E292534909AFF"><enum>(c)</enum><header>Effective
date</header><text>The amendment made by this section shall take effect on the
date of the enactment of this Act.</text>
</subsection></section><section id="H25B0BA9A99974B7C9EFDA02B992367B0"><enum>302.</enum><header>Modification of
requirements relating to tax lien information contained in consumer credit
reports</header>
<subsection id="H67C7683D637240158D5F3B9ED2DEAEFD"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Paragraph (3) of
section 605(a) of the Fair Credit Reporting Act (15 U.S.C. 1681c(a)(3)) is
amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HA91127F703F44F4899BDDA06A6E14031" style="OLC">
<paragraph id="HADEFA6673BB4435999F27CA8EC71D89F"><enum>(3)</enum><header>Tax
liens</header><text display-inline="yes-display-inline">The following tax
liens:</text>
<subparagraph id="H9B0F0246687A470EBBB4DB87E0C33F2E"><enum>(A)</enum><text display-inline="yes-display-inline">Any tax lien released pursuant to section
6325(a) of the Internal Revenue Code of 1986 not more than 2 years after the
date that the notice of such lien was filed.</text>
</subparagraph><subparagraph id="H9A46E853690A4049888CCEC08EFEB6DD"><enum>(B)</enum><text>Any tax lien
released pursuant to section 6325(a) of such Code—</text>
<clause id="HFAE16844493A4B54AB013F3EE91C34E3"><enum>(i)</enum><text>more than 2 years
after the date that the notice of such lien was filed, and</text>
</clause><clause id="H2A6E232225B7475AA63B15BC37CF0097"><enum>(ii)</enum><text>more than 2 years
before the report.</text>
</clause></subparagraph><subparagraph id="H40537C0F665841558625F6947C5A0EAB"><enum>(C)</enum><text>Any tax lien
if—</text>
<clause id="H8C861408F76549EAA10A29FF804DE995"><enum>(i)</enum><text>the notice of such
lien was not refiled during the required refiling period (as defined in section
6323(g)(3) of such Code), and</text>
</clause><clause id="H4DED3324ACD74C629580791F2408C97E"><enum>(ii)</enum><text>such period ends
more than 6 years before the report.</text>
</clause></subparagraph><subparagraph id="H4A1B7A73AF2A4502892954D40C119676"><enum>(D)</enum><text>Any tax lien the
notice of which is withdrawn pursuant to section 6323(j)(1) of such
Code.</text>
</subparagraph><subparagraph id="H3AE95F9148ED4F5294D51BAC6B7F0910"><enum>(E)</enum><text>Any tax lien
released pursuant to section 6326(b) of such Code if the notice of such lien
was erroneously
filed.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HA8BDC81A4C9E408A9EF6B61B74281AE9"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall take effect on the
date of the enactment of this Act.</text>
</subsection></section><section id="H0485A74B72AA4E9792684D097CA1A006"><enum>303.</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>
<quoted-block display-inline="no-display-inline" id="HCAE17B3A227042AABA621CD0C5C83826" style="OLC">
<subsection id="H610C53E1E7D04732815CEE18B5A3110A"><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="H5EAAEB333235446F9AC8146E5DE29452"><enum>304.</enum><header>Public
awareness</header>
<subsection id="H0B146704B5454D90B4A12C363606298F"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 6103(k) is
amended by adding at the end the following new paragraph:</text>
<quoted-block id="HE5F7E1E3011F4F1099FAE8DEFEC4FB68" style="OLC">
<paragraph id="H71A9E2600F7C4C84960A44D90CAF6FF8"><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="HA5327DDA5A6F46ACA0318428683953D8"><enum>(A)</enum><text>the identity of
any person who—</text>
<clause id="H2FEF14376AA542EB90BE9406AD3808C3"><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="HAC34FB52860146408D0B5CD0AAFF03E4"><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="HA8D32924C3774834A84EB3FAA7EE2E42"><enum>(iii)</enum><text>is registered as
a refund delivery product facilitator pursuant to section 7530, and</text>
</clause></subparagraph><subparagraph id="H764CF8ABDF8141429BE91FF039AF882D"><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="H86A666221FAA46F286113778DA869DC3"><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="HCAFCE7103CCE4A7EBB269FA9EC070FD9"><enum>305.</enum><header>Clarification
of taxpayer assistance order authority</header>
<subsection id="H7B2978AC909741E7A837CBBE7B826648"><enum>(a)</enum><header>In
general</header><text>Paragraph (2) of section 7811(b) is amended—</text>
<paragraph id="HBDE2D7731B054AF8A4E73E3DE4DFF0E0"><enum>(1)</enum><text>by redesignating
subparagraphs (C) and (D) as subparagraphs (D) and (E), respectively,
and</text>
</paragraph><paragraph id="HD02DEE1FB33D455DB3F3FE5E78ED8DB3"><enum>(2)</enum><text>by inserting after
subparagraph (B) the following new subparagraph:</text>
<quoted-block id="HD3652CEF528145B5809E4581244DCB30" style="OLC">
<subparagraph id="H333801AFE797484885B920D810B1A320"><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="H33A2536C83084C3CA241E444D44CB944"><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="H7C101557C42A444099DB39DB78D9433A"><enum>306.</enum><header>Taxpayer
advocate directives</header>
<subsection id="HA47617920F9D46CEB33B3C303B39FCE4"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subchapter A of
chapter 80 is amended by adding at the end the following new section:</text>
<quoted-block display-inline="no-display-inline" id="H99BDA01A7D7841BD994BCAAAE26E3604" style="OLC">
<section id="H855357E9A5E64168A85D5D2CB6EDE3AE"><enum>7812.</enum><header>Taxpayer
advocate directives</header>
<subsection id="HA3328B19F61E41B8984BFB1D05867ADE"><enum>(a)</enum><header>Authority To
issue</header><text display-inline="yes-display-inline">The National Taxpayer
Advocate (but not a delegate thereof) may issue a Taxpayer Advocate Directive
to mandate changes to improve the operation of a functional process or to grant
relief to groups of taxpayers (or all taxpayers) if, as a result of the manner
in which the internal revenue laws are being administered by the Secretary, its
implementation will protect the rights of taxpayers, prevent undue burden,
ensure equitable treatment, or provide an essential service to taxpayers. The
terms of a Taxpayer Advocate Directive may require the Internal Revenue Service
to implement it within a specified period of time.</text>
</subsection><subsection id="HEB45349BB41C4148920F7E68D4FFFDAF"><enum>(b)</enum><header>Authority To
modify or rescind</header>
<paragraph id="H0934AD99A3544C1FA531D4FB87387E4B"><enum>(1)</enum><header>Appeal</header><text>An
Internal Revenue Service division or other function may appeal a Taxpayer
Advocate Directive by delivering a written explanation that facilitates a full
and fair consideration of the issues to the National Taxpayer Advocate and
Deputy Commissioner of Internal Revenue, either of whom may modify or repeal
such Taxpayer Advocate Directive. Except as provided in paragraph (2), any
decision of the Deputy Commissioner with respect to such Taxpayer Advocate
Directive shall take precedence.</text>
</paragraph><paragraph id="H8316B29444184F019732DD2AD0C80ED1"><enum>(2)</enum><header>Final
determination</header><text>If any such decision of the Deputy Commissioner
modifies or repeals a Taxpayer Advocate Directive, the National Taxpayer
Advocate may appeal such decision to the Commissioner of Internal Revenue for a
final determination. The Commissioner shall make a final determination with
respect to the Taxpayer Advocate Directive, and provide a written explanation
of such determination and the reasons therefore, not later than 90 days after
the submission of such
appeal.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HCB665534874A4621B7872F77EE30F297"><enum>(b)</enum><header>Annual
report</header>
<paragraph id="HB94FDB3B7486450F9BA1E9F295C8F31D"><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="HC3E0F02E13DE4EAEAAEE8F6949964BD0" style="OLC">
<subclause id="HC7177BFC7E6D4041B236038D3FCB97A6"><enum>(III)</enum><text display-inline="yes-display-inline">contain Taxpayer Advocate Directives issued
under section
7812;</text>
</subclause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H0122C4765D1340CB88071A313B4DFB94"><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="H1577248DAB254285B4E8EBDC167FEE34"><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="HED5B805D920F461C818C5233F04AE5D8"><enum>(B)</enum><text>in subclause
(VIII)—</text>
<clause id="H069C3CB0DDD84F72A763BBD3FECD8AB5"><enum>(i)</enum><text>by
inserting <quote>or Taxpayer Advocate Directive</quote> after <quote>Taxpayer
Assistance Order</quote>, and</text>
</clause><clause id="HBB79C773C47A445782AB5CB59DA320CA"><enum>(ii)</enum><text>by
inserting <quote>or 7812(a)</quote> after <quote>section
7811(b)</quote>.</text>
</clause></subparagraph></paragraph></subsection><subsection id="HF5F9A9D1EDFE46D98AFA9E667E5E69A7"><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>
<quoted-block display-inline="no-display-inline" id="H5FD3C30ED6074481A6EF9F0D67845914" style="OLC">
<toc container-level="quoted-block-container" idref="H99BDA01A7D7841BD994BCAAAE26E3604" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry idref="H855357E9A5E64168A85D5D2CB6EDE3AE" level="section">Sec. 7812. Taxpayer advocate
directives.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="HA634536B16B94C31BBB14C015DE1E0EC"><enum>307.</enum><header>Improved
services for taxpayers</header>
<subsection id="HC3AA7BDF4A914945B899E9E6976F99DE"><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="H7582123D885C46A6B3BE5E575CEAA397"><enum>(1)</enum><text>reduce the time
between receipt of an electronically filed return and issuance of a
refund,</text>
</paragraph><paragraph id="H8148E451ACC7420888E67151084CD638"><enum>(2)</enum><text>expand assistance
to low-income taxpayers,</text>
</paragraph><paragraph id="HB9EEA4A64E2644C88654EE1EC656C3D7"><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="H455385C46A0E40428ACD2612D9765E49"><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="H135DDA2F1EB7486E9D52F1C36AAAA245"><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="HC7F4C10198D9476F9708121CB6316458"><enum>(6)</enum><text>establish a pilot
program for mobile tax return preparation offices.</text>
</paragraph></subsection><subsection id="H3DA8490F4C2A45CF8E3655E54FDAD5F4"><enum>(b)</enum><header>Location of
service</header>
<paragraph id="H89C648B603784BE187CB424C47398BB8"><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="H89A5F692E9D04283BAFE0EC4C2EDE92D"><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="H83AC5B93E5BA46E092F06CF559DB8243"><enum>308.</enum><header>Taxpayer access
to financial institutions</header>
<subsection id="H148228ABADF3493F98A0F1B5F129DE15"><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="H788C288B58DF4812BA55131BAA8F9666"><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="HF0B44344D4164C8A83F7A7C1418AC5A8"><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="H67ABADBC893149888AECB6B4276E6586"><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="HBF8E1B4FED9D46F28A5FDA8CA9E22BDF"><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="H837806BC969A4487AD0567A3FF51E3B8"><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="HEA6DD79ABC2B489BB40014DB9BB73E16"><enum>(c)</enum><header>Eligible
entities</header>
<paragraph id="H1B0DC2E2CE204C37865674A03802F8F2"><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="H4B94C307C1C9498FBEA1BD5FD02BA148"><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="H93FE6F27DC4049CDB8006F1F79694F0E"><enum>(B)</enum><text>a federally
insured depository institution,</text>
</subparagraph><subparagraph id="H36159E8D32944530A74B2AD03A6ED97F"><enum>(C)</enum><text>an agency of a
State or local government,</text>
</subparagraph><subparagraph id="H7A83A6F16DF240128D74E4DE5D811BB8"><enum>(D)</enum><text>a community
development financial institution,</text>
</subparagraph><subparagraph id="HE391E4F2560A4F638116C32CC2932D2F"><enum>(E)</enum><text>an Indian tribal
organization,</text>
</subparagraph><subparagraph id="H51B2F4F3F7F14119AF5F44FCE587E80C"><enum>(F)</enum><text>an Alaska Native
Corporation,</text>
</subparagraph><subparagraph id="HB1361FD4A72F42F99F6938831F1A6D76"><enum>(G)</enum><text>a Native Hawaiian
organization,</text>
</subparagraph><subparagraph id="HA83637994CDD4023B003D5A52FDD6697"><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="HB826B82ED5CF4C3A99D665CE2D6AED6A"><enum>(I)</enum><text>a nonbank
financial service provider, or</text>
</subparagraph><subparagraph id="HAE7854938FC84EE1A8DEE20DBE35C50C"><enum>(J)</enum><text>a partnership
comprised of 1 or more of the entities described in the preceding
subparagraphs.</text>
</subparagraph></paragraph><paragraph id="H48B90540C12F4B939C2270AB23E3282D"><enum>(2)</enum><header>Definitions</header><text>For
purposes of this section—</text>
<subparagraph id="HB77BD70BC3304E5D9C809C570073130A"><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="HE476ADAB11464641A61CE2ED3E17F267"><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="H63F3B91ACDF5432C9B41A1525F404A45"><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="HFEEDAF2C1E8646C790C9979339A31162"><enum>(D)</enum><header>Native Hawaiian
organization</header><text>The term <term>Native Hawaiian organization</term>
means any organization that—</text>
<clause id="H7C56C1134CFF40C2BAA3A9ABB2A51BAD"><enum>(i)</enum><text>serves and
represents the interests of Native Hawaiians, and</text>
</clause><clause id="H0E7284083DC74D5CB24E855440833285"><enum>(ii)</enum><text>has
as a primary and stated purpose the provision of services to Native
Hawaiians.</text>
</clause></subparagraph><subparagraph id="H2AE49F038AD34286AC83181D13C6EA9F"><enum>(E)</enum><header>Labor
organization</header><text>The term <term>labor organization</term> means an
organization—</text>
<clause id="H37A68525E30B4A6AABB8A10AA2A91AB5"><enum>(i)</enum><text>in
which employees participate,</text>
</clause><clause id="HDDF91F9FCCE94EE79FEC1B1D8B9A3448"><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="H37EEF5C4D7C44C9496AFC0A89C81F684"><enum>(iii)</enum><text>which is
described in section 501(c)(5) of the Internal Revenue Code of 1986.</text>
</clause></subparagraph><subparagraph id="H8FA5289A204A4B85B9A4B93337A3FCAF"><enum>(F)</enum><header>Nonbank
financial service provider</header><text>The term <term>nonbank financial
service provider</term> means 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="HCFFD20A170B34AF3ABC16873812FE744"><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="H017B7634CBB04207B726D229C89251E5"><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="HC623C3CA69BC4C1D8C304C769B83760F"><enum>(f)</enum><header>Power and
authority of the Secretary</header>
<paragraph id="H7C529B05F6AE4B849D9229703B447C72"><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="HB13BB445FE5B47769E81886BAE1C382E"><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="HD46E956AAAEA4423B2B32DCE2107A98F"><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="H8DE672B1D1AF451F8B11145E90CAB6D6"><enum>(g)</enum><header>Study on
Delivery of Tax Refunds</header>
<paragraph id="HA026DB0240DA4178BC37402A1647B245"><enum>(1)</enum><header>In
general</header><text>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. This study shall evaluate the methodology and results of the
pilot program conducted by the Secretary during the 2011 filing season.</text>
</paragraph><paragraph id="H97CAF8AC00C346D2AD0D5D8030946E5D"><enum>(2)</enum><header>Pilot
program</header><text>The Secretary shall establish a pilot program for
delivering tax refunds on debit cards, prepaid cards, or other electronic means
and shall consult with the National Taxpayer Advocate in the design and
implementation of, and evaluation of the results of, any such pilot program. In
designing this program the Secretary must take into consideration the findings
of the study conducted under paragraph (1).</text>
</paragraph><paragraph id="H6318A9D11A1042B1B86AC0C93281E646"><enum>(3)</enum><header>Report</header><text display-inline="yes-display-inline">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="H502DB0EAB3A84636BF7BA240597E7CDA"><enum>309.</enum><header>Additional
studies</header>
<subsection id="HE5585FBD9D3644D79767CCD6BA4CBA9E"><enum>(a)</enum><header>Study on
accelerated processing of information returns</header>
<paragraph id="HD676BA2CC17E4453A0E43EB43A94A7D1"><enum>(1)</enum><header>Findings</header><text>Congress
finds the following:</text>
<subparagraph id="H142B41C8643F46EB84F66184E123689C"><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="HE74C5B2AB7A84352A77022AAACF16D44"><enum>(B)</enum><text>The sequence
described in subparagraph (A) makes little logical sense.</text>
</subparagraph><subparagraph id="H4B6E1724C7184858953793DF694C1240"><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="HA256BF6FBD6C4E3FAF35D6B0CBD48E44"><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="H1043797642EC49F882336A420199B177"><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 2011 Annual Report to
Congress.</text>
</paragraph><paragraph id="HE3339DC9EF854DDC845B041CE9836C30"><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="H519497523BDA474193B25E0E69F2C042"><enum>(b)</enum><header>Study on the
Effectiveness of Collection Alternatives</header>
<paragraph id="H71929324831C43D39442F5F0D7D528DF"><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="HFF256A6BCEBA499E94E17A050708E883"><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 display-inline="no-display-inline" id="H52A24C85FFD74B52948A0FDFFFBF2EA6" section-type="subsequent-section"><enum>310.</enum><header>De novo tax court
review of innocent spouse relief determinations</header>
<subsection id="H7C6309B89D814083B7854F4B9B7F0276"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 6015 is
amended by redesignating subsection (h) as subsection (i) and by inserting
after subsection (g) the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="HBBE4DB276B2D4119B1BE34D386406353" style="OLC">
<subsection id="H90FEB2C4FB564DB1BEC2D4D0C18E9EF1"><enum>(h)</enum><header>De novo review
of determinations</header><text display-inline="yes-display-inline">Any review
of a determination made under this section shall be reviewed de novo by the Tax
Court.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H86080303DD9F4D6DBE44B8D32CA33D17"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to petitions
filed or pending before the Tax Court on and after the date of the enactment of
this Act.</text>
</subsection></section>