[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 2333 Introduced in Senate (IS)]

<DOC>






114th CONGRESS
  1st Session
                                S. 2333

    To amend the Internal Revenue Code of 1986 to provide taxpayer 
           protection and assistance, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           November 30, 2015

  Mr. Cardin introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
    To amend the Internal Revenue Code of 1986 to provide taxpayer 
           protection and assistance, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; ETC.

    (a) Short Title.--This Act may be cited as the ``Taxpayer Rights 
Act of 2015''.
    (b) Amendment of 1986 Code.--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, as amended.
    (c) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; etc.
                        TITLE I--TAXPAYER RIGHTS

Sec. 101. Statement of taxpayer rights.
                  TITLE II--PREPARATION OF TAX RETURNS

Sec. 201. Programs for the benefit of low-income taxpayers.
Sec. 202. Regulation of tax return preparers.
Sec. 203. Preparer penalties with respect to preparation of returns and 
                            other submissions.
Sec. 204. Clarification of enrolled agent credentials.
Sec. 205. Limit redisclosures and uses of consent-based disclosures of 
                            tax return information.
                  TITLE III--IMPROVING IRS PROCEDURES

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. De novo tax court review of innocent spouse relief 
                            determinations.
Sec. 304. Release of Federal tax levies which cause business hardship.
Sec. 305. Removal of nonpayment period from list of triggering events 
                            for returns relating to cancellation of 
                            indebtedness.
Sec. 306. Special rules for levies that attach to a fixed and 
                            determinable right.
Sec. 307. Rules related to levies on qualified retirement plans.
Sec. 308. Taxpayer rights training.
Sec. 309. Notice and opportunity for hearing by the Office of Appeals.
                  TITLE IV--NATIONAL TAXPAYER ADVOCATE

Sec. 401. Modifications relating to taxpayer assistance orders.
Sec. 402. Taxpayer advocate directives.
Sec. 403. Office of the Taxpayer Advocate Access to Administrative 
                            Files.
Sec. 404. Office of the Taxpayer Advocate operations during a lapse in 
                            appropriations.

                        TITLE I--TAXPAYER RIGHTS

SEC. 101. STATEMENT OF TAXPAYER RIGHTS.

    (a) In General.--Chapter 77 is amended by adding at the end the 
following new section:

``SEC. 7529. STATEMENT OF TAXPAYER RIGHTS.

    ``(a) In General.--The Secretary shall--
            ``(1) in consultation with the National Taxpayer Advocate, 
        publish a summary statement of primary taxpayer rights (as 
        described in subsection (b)), and
            ``(2) in coordination with the Commissioner of the Internal 
        Revenue Service, ensure that the employees of the Internal 
        Revenue Service are familiar with and act in accordance with 
        such rights.
    ``(b) Statement of Rights.--The statement of rights is as follows:
            ``(1) Right to be informed.
            ``(2) Right to quality service.
            ``(3) Right to pay no more than the correct amount of tax.
            ``(4) Right to challenge the position of the Internal 
        Revenue Service and be heard.
            ``(5) Right of appeal from a decision of the Internal 
        Revenue Service in an independent forum.
            ``(6) Right to finality.
            ``(7) Right to privacy.
            ``(8) Right to confidentiality.
            ``(9) Right to retain representation.
            ``(10) Right to a fair and just tax system, including 
        access to the Taxpayer Advocate Service.''.
    (b) Clerical Amendment.--The table of sections for chapter 77 is 
amended by adding at the end the following new item:

``Sec. 7529. Statement of taxpayer rights.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect 180 days after the date of the enactment of this Act.

                  TITLE II--PREPARATION OF TAX RETURNS

SEC. 201. PROGRAMS FOR THE BENEFIT OF LOW-INCOME TAXPAYERS.

    (a) Grants To Facilitate Nationwide Availability of Volunteer 
Income Tax Assistance for Low-Income and Underserved Populations.--
            (1) In general.--The Secretary, through the Internal 
        Revenue Service, shall establish a Community Volunteer Income 
        Tax Assistance Matching Grant Program (hereinafter in this 
        subsection referred to as the ``VITA grant program''). Except 
        as otherwise provided in this subsection, the VITA grant 
        program shall be administered in a manner which is 
        substantially similar to the Community Volunteer Income Tax 
        Assistance matching grants demonstration program established 
        under title I of division D of the Consolidated Appropriations 
        Act, 2008.
            (2) Matching grants.--
                    (A) In general.--The Secretary shall make available 
                grants under the VITA grant program to provide matching 
                funds for the development, expansion, or continuation 
                of qualified return preparation programs assisting low-
                income taxpayers and members of underserved 
                populations.
                    (B) Application.--In order to be eligible for a 
                grant under this subsection, a qualified return 
                preparation program shall submit an application to the 
                Secretary at such time, in such manner, and containing 
                such information as the Secretary may reasonably 
                require for each fiscal year.
                    (C) Priority.--In awarding grants under this 
                subsection, the Secretary shall give priority to 
                applications--
                            (i) demonstrating assistance to low-income 
                        taxpayers, with emphasis on outreach to and 
                        services for such taxpayers,
                            (ii) demonstrating taxpayer outreach and 
                        education around available income supports and 
                        refundable credits such as the earned income 
                        tax credit under section 32 of the Internal 
                        Revenue Code of 1986, and
                            (iii) demonstrating specific outreach and 
                        focus on one or more underserved populations.
                    (D) Use of funds.--Qualified return preparation 
                programs receiving a grant under this subsection may 
                use the grant for--
                            (i) ordinary and necessary costs associated 
                        with program operation in accordance with Cost 
                        Principles Circulars as set forth by the Office 
                        of Management and Budget, including--
                                    (I) for wages or salaries of 
                                persons coordinating the activities of 
                                the program,
                                    (II) to develop training materials, 
                                conduct training, and perform quality 
                                reviews of the returns, and
                                    (III) for equipment purchases and 
                                vehicle-related expenses associated 
                                with remote or rural tax preparation 
                                services,
                            (ii) outreach and educational activities 
                        relating to eligibility and availability of 
                        income supports available through the Internal 
                        Revenue Code of 1986, such as the earned income 
                        tax credit, and
                            (iii) services related to financial 
                        education and capability, asset development, 
                        and the establishment of savings accounts in 
                        connection with tax return preparation.
                    (E) Duration of grants.--
                            (i) In general.--Except as provided in 
                        clause (ii), a grant awarded under this 
                        subsection shall be for a period of 1 year and 
                        shall not be renewed other than through an 
                        application under subparagraph (B).
                            (ii) Extended grants.--The Secretary may 
                        award a grant under this subsection for a 
                        period of not more than 3 years to any 
                        qualified return preparation program which--
                                    (I) received a grant under this 
                                subsection for the preceding year, and
                                    (II) received a score of 90 percent 
                                or better on a technical evaluation.
                    (F) Use of grants for overhead expenses 
                prohibited.--No grant made under this subsection may be 
                used for overhead expenses that are not directly 
                related to any qualified return preparation program.
            (3) Promotion and referral.--
                    (A) Promotion.--The Secretary shall promote the 
                benefits of, and encourage the use of, tax preparation 
                through the Volunteer Income Tax Assistance program 
                through the use of mass communications, referrals, and 
                other means.
                    (B) Internal revenue service referrals.--The 
                Secretary may refer taxpayers to qualified return 
                preparation programs receiving funding under this 
                subsection.
                    (C) VITA grantee referral.--Qualified return 
                preparation programs receiving a grant under this 
                subsection are encouraged to refer, as appropriate, to 
                local or regional Low Income Tax Clinics individuals 
                who are eligible to receive services at such clinics.
            (4) Authorization of appropriations.--
                    (A) In general.--For each of fiscal years 2016, 
                2017, 2018, 2019, and 2020, there are authorized to be 
                appropriated $30,000,000 to carry out the purposes of 
                this subsection.
                    (B) Reservation.--From the funds appropriated under 
                subparagraph (A) for any fiscal year, the Secretary 
                shall reserve not more than 3 percent for 
                administration of the program.
                    (C) Availability.--Amounts appropriated pursuant to 
                the authority of subparagraph (A) shall remain 
                available without fiscal year limitation until 
                expended.
    (b) National Center To Promote Quality, Excellence, and Evaluation 
in Volunteer Income Tax Assistance.--
            (1) National center to promote quality, excellence, and 
        evaluation in volunteer income tax assistance.--
                    (A) Establishment.--There is hereby established the 
                National Center to Promote Quality, Excellence, and 
                Evaluation in Volunteer Income Tax Assistance 
                (hereinafter in this subsection referred to as the 
                ``Center'').
                    (B) Purpose.--The Center shall--
                            (i) promote the adoption of a universally 
                        accessible volunteer training platform for the 
                        preparation of Federal income tax returns,
                            (ii) provide capacity-building technical 
                        assistance to qualified return preparation 
                        program managers,
                            (iii) identify and disseminate best 
                        practices related to tax site management 
                        emerging from States, community-based 
                        organizations, nonprofit providers, and local 
                        government entities,
                            (iv) support outreach and marketing efforts 
                        to encourage the use of qualified return 
                        preparation programs receiving funding under 
                        subsection (a), and
                            (v) provide evaluation of programs and 
                        activities funded under this section, 
                        including--
                                    (I) identification, both in 
                                aggregate and disaggregate, of gaps in 
                                services for low-income taxpayers and 
                                underserved populations, and
                                    (II) independent evaluation of 
                                progress toward program objectives, as 
                                defined by the Secretary.
                    (C) Administration.--
                            (i) In general.--The Secretary shall--
                                    (I) designate, through a 
                                competitive process, one qualified 
                                entity to be the lead national 
                                organization, and
                                    (II) provide an annual grant to the 
                                lead national organization designated 
                                under subclause (I).
                            (ii) Duties of lead national 
                        organization.--The lead national organization 
                        shall use funds provided through the grant in 
                        clause (i)(II) to--
                                    (I) carry out the purposes of the 
                                Center, and
                                    (II) make subgrants as provided in 
                                paragraph (2).
            (2) Subgrants.--
                    (A) In general.--The lead national organization 
                shall make available subgrants to eligible 
                organizations to facilitate specialized technical 
                assistance in reaching one or more underserved 
                populations.
                    (B) Eligible organization.--For purposes of this 
                paragraph, the term ``eligible organization'' means any 
                organization which--
                            (i) is described in section 501(c) of the 
                        Internal Revenue Code of 1986 and exempt from 
                        tax under section 501(a) of such Code,
                            (ii) has, to the satisfaction of the lead 
                        national organization, demonstrated expertise 
                        and evidenced-based practices in specialized 
                        outreach to, and service of, one or more 
                        underserved populations, and
                            (iii) has, to the satisfaction of the lead 
                        national organization, demonstrated expertise 
                        in the provision of specialized technical 
                        assistance relating to qualified return 
                        preparation programs for one or more targeted 
                        underserved populations.
                    (C) Application.--In order to be eligible for a 
                subgrant under this paragraph, an eligible organization 
                shall submit an application to the lead national 
                organization at such time, in such manner, and 
                containing such information as the lead national 
                organization may reasonably require for each fiscal 
                year.
                    (D) Use of funds.--An eligible organization which 
                receives a subgrant under this paragraph shall assist 
                the Center by--
                            (i) providing technical assistance to 
                        qualified return preparation programs with 
                        targeted outreach and assistance to one or more 
                        underserved populations, and
                            (ii) including strategies for the provision 
                        of technical assistance targeting individuals 
                        and families with annual household earnings at 
                        or below 250 percent of the poverty line within 
                        the underserved populations served by the 
                        subgrant.
                    (E) Subgrant amount.--
                            (i) In general.--Each year, the lead 
                        national organization shall make available 
                        subgrants which, in the aggregate, do not 
                        exceed 40 percent of the grant received under 
                        paragraph (1).
                            (ii) Underserved populations.--Of the 
                        amount of subgrants provided under clause (i)--
                                    (I) not less than 25 percent shall 
                                be dedicated to specialized technical 
                                assistance in serving taxpayers with 
                                disabilities,
                                    (II) not less than 25 percent shall 
                                be dedicated to specialized technical 
                                assistance in serving limited English 
                                speaking taxpayers, and
                                    (III) not less than 25 percent 
                                shall be dedicated to specialized 
                                technical assistance in serving Native 
                                American taxpayers.
                    (F) Duration of subgrants.--A subgrant awarded 
                under this paragraph shall be for a period of 1 year 
                and shall not be renewed other than through an 
                application under subparagraph (C).
            (3) Authorization of appropriations.--
                    (A) In general.--For each of fiscal years 2016, 
                2017, 2018, 2019, and 2020, there are authorized to be 
                appropriated $5,000,000 to carry out the purposes of 
                this subsection.
                    (B) Availability.--Amounts appropriated pursuant to 
                the authority of subparagraph (A) shall remain 
                available without fiscal year limitation until 
                expended.
    (c) Definitions.--As used in subsections (a) and (b):
            (1) Qualified return preparation program.--The term 
        ``qualified return preparation program'' means any program--
                    (A) which provides assistance to individuals, not 
                less than 90 percent of whom are low-income taxpayers, 
                in preparing and filing Federal income tax returns, 
                including schedules reporting sole proprietorship or 
                farm income,
                    (B) which is administered by a qualified entity,
                    (C) 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
                    (D) which uses a quality review process which 
                reviews 100 percent of all returns.
            (2) Qualified entity.--
                    (A) In general.--The term ``qualified entity'' 
                means any entity which--
                            (i) is described in subparagraph (B),
                            (ii) is in compliance with Federal tax 
                        filing and payment requirements,
                            (iii) is not debarred or suspended from 
                        Federal contracts, grants, or cooperative 
                        agreements, and
                            (iv) agrees to provide documentation to 
                        substantiate any matching funds provided under 
                        the VITA grant program.
                    (B) Entity described.--An entity is described in 
                this subparagraph if such entity is--
                            (i) an institution of higher education 
                        which 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,
                            (ii) an organization described in section 
                        501(c) of the Internal Revenue Code of 1986 and 
                        exempt from tax under section 501(a) of such 
                        Code,
                            (iii) a State or local government agency, 
                        including--
                                    (I) a county or municipal 
                                government agency,
                                    (II) 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)), including 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, and
                                    (III) a State government agency, 
                                but only if no other eligible 
                                organization is available to assist the 
                                targeted population or community,
                            (iv) a local, State, regional, or national 
                        coalition (with one lead organization which 
                        meets the eligibility requirements of clause 
                        (i), (ii), or (iii) acting as the applicant 
                        organization), or
                            (v) a Cooperative Extension Service office, 
                        but only if no other eligible organization is 
                        available to assist the targeted population or 
                        community.
            (3) Low-income taxpayers.--The term ``low-income taxpayer'' 
        means a taxpayer who has an income which does not exceed 250 
        percent of the poverty line (as defined in section 2110(c)(5) 
        of the Social Security Act (42 U.S.C. 1397jj(c)(5))).
            (4) Underserved population.--The term ``underserved 
        population'' includes populations of persons with disabilities, 
        persons with limited English proficiency, Native Americans, 
        individuals living in rural areas, and the elderly.
            (5) Lead national organization.--The term ``lead national 
        organization'' means an organization described in section 
        501(c) of the Internal Revenue Code of 1986 and exempt from tax 
        under section 501(a) of such Code which has demonstrated, to 
        the satisfaction of the Secretary--
                    (A) capacity in a minimum of 15 States, 
                territories, or tribal areas,
                    (B) expertise in the provision of tax preparation 
                services to low-income taxpayers and underserved 
                populations,
                    (C) an ability to train program leadership and 
                staff,
                    (D) capacity to disseminate information throughout 
                the United States, and
                    (E) capacity to--
                            (i) maintain a Web site through which 
                        information is disseminated in an easily 
                        accessible manner, and
                            (ii) provide technical assistance and 
                        training through Web-based technologies.
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury or the Secretary's delegate.
    (d) Low-Income Taxpayer Clinics.--
            (1) Increase in authorized grants.--Paragraph (1) of 
        section 7526(c) is amended by striking ``$6,000,000'' and 
        inserting ``$20,000,000''.
            (2) Use of grants for overhead expenses prohibited.--
                    (A) In general.--Section 7526(c) is amended by 
                adding at the end the following new paragraph:
            ``(6) Use of grants for overhead expenses prohibited.--No 
        grant made under this section may be used for overhead expenses 
        that are not directly related to the clinic.''.
                    (B) Conforming amendments.--Section 7526(c)(5) is 
                amended--
                            (i) by inserting ``qualified'' before 
                        ``low-income'', and
                            (ii) by striking the last sentence.
            (3) Promotion of clinics.--Section 7526 is amended by 
        adding at the end the following new subsection:
    ``(d) Promotion of Clinics.--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.''.
            (4) IRS referrals to clinics.--Subsection (c) of section 
        7526, as amended by paragraph (2)(A), is amended by adding at 
        the end the following new paragraph:
            ``(7) IRS referrals.--Notwithstanding any other provision 
        of law, the Secretary may refer taxpayers to specific qualified 
        low-income taxpayer clinics receiving funding under this 
        section.''.
            (5) Poverty line.--Section 7526(b)(1)(B)(i) is amended by 
        striking ``poverty level, as determined in accordance with 
        criteria established by the Director of the Office of 
        Management and Budget'' and inserting ``poverty line (as 
        defined in section 2110(c)(5) of the Social Security Act (42 
        U.S.C. 1397jj(c)(5)))''.
            (6) Notice of availability of clinics in notice of 
        deficiency.--Subsection (a) of section 6212 is amended by 
        inserting ``, as well as notice regarding the availability of 
        low-income taxpayer clinics and information about how to 
        contact them'' before the period at the end.
            (7) Notice of availability of clinics in notice of hearing 
        upon filing of notice of lien.--Subsection (a) of section 6320 
        is amended by adding at the end the following new sentence:
``Such notice shall include a notice to the taxpayer of the 
availability of low-income taxpayer clinics and information about how 
to contact them.''.
            (8) Notice of availability of clinics in notice and 
        opportunity of hearing before levy.--Paragraph (3) of section 
        6330(a) is amended by adding at the end the following flush 
        sentence:
        ``Such notice shall include a notice to the taxpayer of the 
        availability of low-income taxpayer clinics and information 
        about how to contact them.''.
    (e) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 202. REGULATION OF TAX RETURN PREPARERS.

    (a) In General.--Subsection (a) of section 330 of title 31, United 
States Code, is amended--
            (1) by striking paragraph (1) and inserting the following:
            ``(1) regulate--
                    ``(A) the practice of representatives of persons 
                before the Department of the Treasury; and
                    ``(B) the practice of tax return preparers; and'', 
                and
            (2) in paragraph (2)--
                    (A) by inserting ``or tax return preparer'' after 
                ``representative'' each place it appears, and
                    (B) by inserting ``or in preparing their tax 
                returns, claims for refund, or documents in connection 
                with tax returns or claims for refund'' after ``cases'' 
                in subparagraph (D).
    (b) Authority To Sanction Regulated Tax Return Preparers.--
Subsection (b) of section 330 of title 31, United States Code, is 
amended--
            (1) by striking ``before the Department'',
            (2) by inserting ``or tax return preparer'' after 
        ``representative'' each place it appears, and
            (3) in paragraph (4), by striking ``misleads or threatens'' 
        and all that follows and inserting ``misleads or threatens--
                    ``(A) any person being represented or any 
                prospective person being represented; or
                    ``(B) any person or prospective person whose tax 
                return, claim for refund, or document in connection 
                with a tax return or claim for refund, is being or may 
                be prepared.''.
    (c) Tax Return Preparer Defined.--Section 330 of title 31, United 
States Code, is amended by adding at the end the following new 
subsection:
    ``(e) Tax Return Preparer.--For purposes of this section--
            ``(1) In general.--The term `tax return preparer' has the 
        meaning given such term under section 7701(a)(36) of the 
        Internal Revenue Code of 1986.
            ``(2) Tax return.--The term `tax return' has the meaning 
        given to the term `return' under section 6696(e)(1) of the 
        Internal Revenue Code of 1986.
            ``(3) Claim for refund.--The term `claim for refund' has 
        the meaning given such term under section 6696(e)(2) of such 
        Code.''.

SEC. 203. PREPARER PENALTIES WITH RESPECT TO PREPARATION OF RETURNS AND 
              OTHER SUBMISSIONS.

    (a) Inclusion of Other Submissions in Penalty Provisions.--
            (1) Understatement of taxpayer's liability by tax return 
        preparer.--
                    (A) In general.--Section 6694 is amended by 
                striking ``return or claim of refund'' each place it 
                appears and inserting ``return, claim of refund, or 
                other submission to the Secretary''.
                    (B) Conforming amendments.--Section 6694, as 
                amended by paragraph (1), is amended by striking 
                ``return or claim'' each place it appears and inserting 
                ``return, claim, or other submission to the 
                Secretary''.
            (2) Increase in penalty in case of gross misconduct.--
        Subsection (b) of section 6694 is amended by adding at the end 
        the following new paragraph:
            ``(4) Increase in penalty in case of gross misconduct.--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 `100 percent of the amount of the understatement' 
        for `50 percent of the amount derived (or to be derived) by the 
        tax return preparer with respect to the return or claim'. This 
        penalty shall be in addition to any other penalties provided by 
        law.''.
            (3) Other assessable penalties.--
                    (A) In general.--Section 6695 is amended by 
                striking ``return or claim of refund'' each place it 
                appears and inserting ``return, claim of refund, or 
                other submission''.
                    (B) Conforming amendments.--Section 6695, as 
                amended by paragraph (1), is amended by striking 
                ``return or claim'' each place it appears and inserting 
                ``return, claim, or other submission''.
    (b) Increase in Certain Other Assessable Penalty Amounts.--
            (1) In general.--Subsections (a), (b), and (c) of section 
        6695 are each amended by striking ``$50'' and inserting 
        ``$1,000''.
            (2) Removal of annual limitation.--Subsections (a), (b), 
        and (c) of section 6695 are each amended by striking the last 
        sentence thereof.
    (c) Review by the Treasury Inspector General for Tax 
Administration.--Subparagraph (A) of section 7803(d)(2) is amended by 
striking ``and'' at the end of clause (iii), by striking the period at 
the end of clause (iv) and inserting ``, and'', and by adding at the 
end the following new clause:
                            ``(v) 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,''.
    (d) Additional Certification on Documents Other Than Returns.--
            (1) Identifying number required for all submissions to the 
        irs by tax return preparers.--The first sentence of paragraph 
        (4) of section 6109(a) is amended by striking ``return or claim 
        for refund'' and inserting ``return, claim for refund, 
        statement, or other document''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply to any return, claim for refund, or submission to 
        the Secretary that is filed after the date of the enactment of 
        this Act.
    (e) Coordination With Section 6060(a).--The Secretary of the 
Treasury shall coordinate the requirements under the regulations 
promulgated under sections 330 and 330A of title 31, United States 
Code, with the return requirements of section 6060 of the Internal 
Revenue Code of 1986.
    (f) Effective Date.--The regulations required by this section shall 
be prescribed not later than one year after the date of the enactment 
of this Act.

SEC. 204. CLARIFICATION OF ENROLLED AGENT CREDENTIALS.

    Section 330 of title 31, United States Code, is amended--
            (1) by redesignating subsections (b), (c), and (d) as 
        subsections (c), (d), and (e), respectively, and
            (2) by inserting after subsection (a) the following new 
        subsection:
    ``(b) Any enrolled agents properly licensed to practice as required 
under rules promulgated under subsection (a) shall be allowed to use 
the credentials or designation of `enrolled agent', `EA', or `E.A.'.''.

SEC. 205. LIMIT REDISCLOSURES AND USES OF CONSENT-BASED DISCLOSURES OF 
              TAX RETURN INFORMATION.

    (a) In General.--Subsection (c) of section 6103 is amended by 
striking ``However, return'' and inserting the following: ``Persons 
designated by the taxpayer to receive return information shall not use 
the information for any purpose other than the express purpose for 
which consent was granted and shall not disclose return information to 
any other person without the express permission of, or request by, the 
taxpayer. Return''.
    (b) Effective Date.--The amendment made by this section shall apply 
to disclosures after the date of the enactment of this Act.

                  TITLE III--IMPROVING IRS PROCEDURES

SEC. 301. MODIFICATIONS TO LIEN NOTICE FILING PROCEDURES.

    (a) In General.--Section 6323 is amended by adding at the end the 
following new subsection:
    ``(k) Required Procedures Before Filing Notice of Lien.--
            ``(1) Secretarial determination.--
                    ``(A) In general.--The Secretary may not file a 
                notice of lien with respect to any taxpayer unless--
                            ``(i) the lien attaches to distrainable 
                        property, and
                            ``(ii) weighing all facts and circumstances 
                        pertaining to the collection of a taxpayer's 
                        delinquent tax assessment, the Secretary 
                        determines that--
                                    ``(I) the benefit to the Federal 
                                Government of the filing outweighs the 
                                harm to the taxpayer, and
                                    ``(II) the filing will not 
                                jeopardize the taxpayer's prospective 
                                ability--
                                            ``(aa) to comply with the 
                                        internal revenue laws, and
                                            ``(bb) if the taxpayer is 
                                        an otherwise viable business 
                                        taxpayer, to continue to secure 
                                        funding to maintain business 
                                        operations.
                    ``(B) Factors to consider.--In making the 
                determination under subparagraph (A)(ii), the Secretary 
                shall consider--
                            ``(i) the amount due,
                            ``(ii) the lien filing fee,
                            ``(iii) the value of the taxpayer's equity 
                        in the property or rights to property,
                            ``(iv) the taxpayer's tax compliance 
                        history,
                            ``(v) extenuating circumstances, if any, 
                        that explain the delinquency, and
                            ``(vi) the effect of the filing on the 
                        taxpayer's ability to obtain financing, 
                        generate future income, and pay current and 
                        future tax liabilities.
            ``(2) Taxpayer appeal prior to filing.--
                    ``(A) In general.--The Secretary may not file a 
                notice of lien with respect to any taxpayer unless--
                            ``(i) the Secretary notifies the taxpayer 
                        that the Secretary has determined to file such 
                        a notice with respect to the taxpayer, and
                            ``(ii) the taxpayer is afforded an 
                        opportunity to appeal such determination to the 
                        Internal Revenue Service Office of Appeals.
                The Secretary shall provide the notice under 
                subparagraph (A) in writing and make reasonable efforts 
                to provide such notice by telephone or direct personal 
                contact.
                    ``(B) Jeopardy notice of lien.--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.
            ``(3) Supervisory approval required for liens in certain 
        cases.--
                    ``(A) In general.--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.
                    ``(B) Cases to which paragraph applies.--This 
                paragraph shall apply in any case in which--
                            ``(i) the collection of the liability would 
                        create an economic hardship within the meaning 
                        of section 6343(a)(1)(D),
                            ``(ii) the taxpayer has no equity in 
                        assets, or
                            ``(iii) there has been no personal contact 
                        with the taxpayer to discuss collection 
                        alternatives, including an offer in compromise 
                        and partial payment installment agreement.''.
    (b) Jeopardy Notice of Lien.--
            (1) In general.--Subparagraph (A) of section 7429(a)(1) is 
        amended by inserting after ``or 6862,'' the following: ``no 
        notice of lien may be filed pursuant to section 
        6323(k)(2)(B),''.
            (2) Redetermination by secretary.--Paragraph (3) of section 
        7429(a) is amended by striking ``or'' at the end of 
        subparagraph (A), by redesignating subparagraph (B) as 
        subparagraph (C), and by inserting after subparagraph (A) the 
        following new subparagraph:
                    ``(B) whether or not the filing of the notice of 
                lien pursuant to section 6323(k)(2)(B) is reasonable 
                under the circumstances, or''.
            (3) Redetermination by tax court.--Paragraph (3) of section 
        7429(b) is amended by striking ``or'' at the end of 
        subparagraph (A), by redesignating subparagraph (B) as 
        subparagraph (C), and by inserting after subparagraph (A) the 
        following new subparagraph:
                    ``(B) whether or not the filing of the notice of 
                lien pursuant to section 6323(k)(2)(B) is reasonable 
                under the circumstances, or''.
            (4) Conforming amendments.--
                    (A) The heading for section 7429 is amended by 
                inserting ``, notice of lien filing,'' after ``levy''.
                    (B) Subparagraphs (A) and (B) of section 7429(a)(1) 
                are each amended by striking ``assessment or levy'' 
                each place it appears and inserting ``assessment, 
                notice of lien filing, or levy''.
                    (C) Subparagraph (B) of section 7429(b)(2) is 
                amended by striking ``assessment or levy'' and 
                inserting ``assessment, notice of lien filing, or 
                levy''.
                    (D) Paragraph (4) of section 7429(b) is amended--
                            (i) by inserting ``that the filing of such 
                        notice of lien is unreasonable,'' after ``that 
                        the making of such levy is unreasonable,'', and
                            (ii) by inserting ``to withdraw such notice 
                        of lien,'' after ``to release such levy,''.
                    (E) Paragraph (1) of section 7429(g) is amended--
                            (i) by inserting ``, the filing of a notice 
                        of lien pursuant to section 6323(k)(2)(B),'' 
                        after ``the making of a levy described in 
                        subsection (a)(1)'', and
                            (ii) by inserting ``notice of lien filing'' 
                        after ``Reasonableness of'' in the heading 
                        thereof.
    (c) Effective Date.--The amendment made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 302. MODIFICATION OF REQUIREMENTS RELATING TO TAX LIEN INFORMATION 
              CONTAINED IN CONSUMER CREDIT REPORTS.

    (a) In General.--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:
            ``(3) Tax liens.--The following tax liens:
                    ``(A) 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.
                    ``(B) Any tax lien released pursuant to section 
                6325(a) of such Code--
                            ``(i) more than 2 years after the date that 
                        the notice of such lien was filed, and
                            ``(ii) more than 2 years before the report.
                    ``(C) Any tax lien if--
                            ``(i) the notice of such lien was not 
                        refiled during the required refiling period (as 
                        defined in section 6323(g)(3) of such Code), 
                        and
                            ``(ii) such period ends more than 6 years 
                        before the report.
                    ``(D) Any tax lien the notice of which is withdrawn 
                pursuant to section 6323(j)(1) of such Code.
                    ``(E) Any tax lien released pursuant to section 
                6326(b) of such Code if the notice of such lien was 
                erroneously filed.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 303. DE NOVO TAX COURT REVIEW OF INNOCENT SPOUSE RELIEF 
              DETERMINATIONS.

    (a) In General.--Section 6015 is amended--
            (1) in subsection (e), by adding at the end the following 
        new paragraph:
            ``(6) Standard and scope of review.--Any review of a 
        determination made under this section shall be reviewed de novo 
        by the Tax Court and shall be based upon--
                    ``(A) the administrative record established at the 
                time of the determination, and
                    ``(B) any additional newly discovered or previously 
                unavailable evidence.'', and
            (2) by amending subsection (f) to read as follows:
    ``(f) Equitable Relief.--
            ``(1) In general.--Under procedures prescribed by the 
        Secretary, if--
                    ``(A) taking into account all the facts and 
                circumstances, it is inequitable to hold the individual 
                liable for any unpaid tax or any deficiency (or any 
                portion of either), and
                    ``(B) relief is not available to such individual 
                under subsection (b) or (c),
        the Secretary may relieve such individual of such liability.
            ``(2) Limitation.--A request for equitable relief under 
        this subsection may be made with respect to any portion of any 
        liability that--
                    ``(A) has not been paid, provided that such request 
                is made before the expiration of the applicable period 
                of limitation under section 6502, or
                    ``(B) has been paid, provided that such request is 
                made during the period in which the individual could 
                submit a timely claim for refund or credit of such 
                payment.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to petitions or requests filed or pending on and after the date 
of the enactment of this Act.

SEC. 304. RELEASE OF FEDERAL TAX LEVIES WHICH CAUSE BUSINESS HARDSHIP.

    (a) In General.--Subparagraph (D) of section 6343(a)(1) is amended 
by inserting ``or any trade or business of the taxpayer'' before ``, 
or''.
    (b) Criteria for Determining Business Hardship.--Subsection (a) of 
section 6343 is amended by adding at the end the following new 
paragraph:
            ``(4) Criteria for determining business hardship.--For 
        purposes of making a determination under paragraph (1)(D), with 
        respect to a trade or business of the taxpayer, the Secretary 
        shall take into consideration--
                    ``(A) the economic viability of such trade or 
                business,
                    ``(B) the nature and extent of the hardship, 
                including the extent to which the taxpayer exercised 
                ordinary business care and prudence, and
                    ``(C) any hardships which would be caused to other 
                individuals or businesses if such trade or business 
                were liquidated.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 305. REMOVAL OF NONPAYMENT PERIOD FROM LIST OF TRIGGERING EVENTS 
              FOR RETURNS RELATING TO CANCELLATION OF INDEBTEDNESS.

    (a) In General.--Subsection (c) of section 6050P is amended by 
adding at the end the following new paragraph:
            ``(4) Determining date of discharge.--Whether an entity has 
        discharged the indebtedness of any person shall not be 
        determined based solely on the passage of a specified period of 
        time during which the entity has not received payment on such 
        indebtedness.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to discharges of indebtedness after the date of the enactment of 
this Act.

SEC. 306. SPECIAL RULES FOR LEVIES THAT ATTACH TO A FIXED AND 
              DETERMINABLE RIGHT.

    (a) In General.--Section 6331 is amended by redesignating 
subsection (l) as subsection (m) and by inserting after subsection (k) 
the following new subsection:
    ``(l) Limitation on Levy After Expiration of Collection Period.--
            ``(1) Penalties and interest.--In the case of a levy that 
        attaches to a fixed and determinable right to payments or other 
        property, penalties, additions to tax, and interest shall not 
        accrue after the expiration of the period of limitations 
        provided in section 6502.
            ``(2) Retirement and disability payments.--In the case of a 
        levy on benefits under title II of the Social Security Act, 
        benefits under a plan on account of a disability, or retirement 
        benefits or amounts held in a retirement plan, such levy is not 
        enforceable with respect to such benefits or amounts after the 
        expiration of the period of limitations provided in section 
        6502 unless the taxpayer has committed a flagrant act (as 
        defined in section 6334(f)(2)).''.
    (b) Effective Date.--The amendments made by this section shall 
apply to levies served after the date of the enactment of this Act.

SEC. 307. RULES RELATED TO LEVIES ON QUALIFIED RETIREMENT PLANS.

    (a) Levy Allowed on Qualified Retirement Plans in Certain 
Circumstances.--Section 6334 is amended--
            (1) by redesignating subsections (f) and (g) as subsections 
        (g) and (h), respectively,
            (2) by inserting after subsection (e) the following new 
        subsection:
    ``(f) Levy Allowed on Certain Retirement Plans.--
            ``(1) In general.--Amounts in a qualified retirement plan 
        (as defined in section 4974(c)) or amounts in a taxpayer's 
        account in the Thrift Savings Fund (as described in section 
        8439(a)(2) of title 5, United States Code) shall be exempt from 
        levy unless--
                    ``(A) the amount of tax (excluding interest and 
                penalties) owed by the taxpayer exceeds $10,000,
                    ``(B) the Secretary determines that the taxpayer 
                has committed a flagrant act, and
                    ``(C) the Secretary determines that such levy will 
                not create an economic hardship due to the financial 
                condition of the taxpayer (as described in section 
                6343(a)(1)(D)).
            ``(2) Flagrant act.--For purposes of this subsection, the 
        term `flagrant act' means--
                    ``(A) the filing of a fraudulent return by the 
                taxpayer, or
                    ``(B) that the taxpayer acted with the intent to 
                evade or defeat any tax imposed by this title or the 
                collection or payment thereof.'', and
            (3) in subsection (h), as redesignated by paragraph (1)--
                    (A) by redesignating paragraph (2) as paragraph 
                (3),
                    (B) in paragraph (3), as redesignated by 
                subparagraph (A), by inserting ``or (2)'' after 
                ``paragraph (1)'', and
                    (C) by inserting after paragraph (1) the following 
                new paragraph:
            ``(2) Other amounts.--In the case of any calendar year 
        beginning after 2015, the dollar amount referred to in 
        subsection (f)(1)(A) shall be increased by an amount equal to--
                    ``(A) $10,000, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for such calendar year, by 
                substituting `calendar year 2014' for `calendar year 
                1992' in subparagraph (B) thereof.''.
    (b) Authority To Release Levy and Return Property.--Section 6343 is 
amended by adding at the end the following new subsection:
    ``(f) Individual Held Harmless for Wrongful Levy on Certain 
Retirement Plans.--
            ``(1) In general.--If the Secretary determines that a 
        qualified retirement plan (as defined in section 4974(c)) or a 
        taxpayer's account in the Thrift Savings Fund (as described in 
        section 8439(a)(2) of title 5, United States Code) has been 
        levied upon in a manner described in section 7433 or subsection 
        (b) or (d) of this section, the applicable amount (as 
        determined under paragraph (2)) may be deposited into--
                    ``(A) if permissible, the plan or account levied 
                upon, or
                    ``(B) an individual retirement plan (other than an 
                endowment contract) to which a rollover from the plan 
                or account levied upon is permitted.
            ``(2) Applicable amount.--For purposes of paragraph (1), 
        the applicable amount is an amount equal to the sum of--
                    ``(A) the amount of money or damages returned by 
                the Secretary on account of a levy described in 
                paragraph (1), and
                    ``(B) any interest paid pursuant to subsection (c) 
                on such amount.
            ``(3) Treatment as rollover.--For purposes of this title, 
        the distribution on account of the levy and any deposit under 
        paragraph (1) with respect to such distribution shall be 
        treated as if such distribution and deposit were a rollover 
        contribution described in section 408(d)(3)(A)(i), except 
        that--
                    ``(A) any interest paid pursuant to subsection (c) 
                shall be treated as a part of such distribution and not 
                included in gross income,
                    ``(B) the 60-day requirement under such section 
                shall be deemed to have been met if the deposit is made 
                not later than the 60th day after the day on which the 
                taxpayer receives an amount described in paragraph (1) 
                from the Secretary, and
                    ``(C) such deposit shall not be taken into account 
                for purposes of section 408(d)(3)(B).
            ``(4) Treatment of income tax on levy.--If any amount is 
        includible in gross income for a taxable year by reason of a 
        levy described in paragraph (1) and any portion of such amount 
        is treated as a rollover pursuant to paragraph (3), any tax 
        imposed by chapter 1 on such portion shall not be assessed, and 
        if assessed shall be abated, and if collected shall be credited 
        or refunded as an overpayment made on the due date for filing 
        the return of tax for such taxable year.
            ``(5) Interest.--Notwithstanding subsection (d), interest 
        shall be allowed under subsection (c) in any case in which the 
        Secretary makes a determination described under section 7433 or 
        paragraph (2) of subsection (d) with respect to a levy upon a 
        qualified retirement plan or an account in the Thrift Savings 
        Fund.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to levies served after the date of the enactment of this Act.

SEC. 308. TAXPAYER RIGHTS TRAINING.

    (a) In General.--
            (1) Taxpayer advocate.--Subparagraph (C) of section 
        7803(c)(2) is amended by striking ``and'' at the end of clause 
        (iii), by striking the period at the end of clause (iv) and 
        inserting ``; and'', and by adding at the end the following new 
        clause:
                            ``(v) develop annual training for all 
                        Internal Revenue Service officers and employees 
                        regarding taxpayer rights, the Office of the 
                        Taxpayer Advocate's case criteria and mission, 
                        and Taxpayer Assistance Order procedures.''.
            (2) Commissioner.--Paragraph (3) of section 7803(c) is 
        amended--
                    (A) by striking the period at the end and inserting 
                ``; and'', and
                    (B) by striking ``shall establish procedures 
                requiring'' and inserting the following: ``shall 
                establish procedures--
                    ``(A) requiring'', and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(B) for providing annually the training described 
                in subsection (c)(2)(C)(v)''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 309. NOTICE AND OPPORTUNITY FOR HEARING BY THE OFFICE OF APPEALS.

    (a) In General.--Section 6212 is amended by adding at the end the 
following new subsection:
    ``(e) Requirement of Preliminary Notice and Opportunity for 
Hearing.--
            ``(1) Right to a hearing.--Subject to paragraph (3), any 
        taxpayer which receives a notice of deficiency under this 
        section shall be entitled to a hearing held by the Internal 
        Revenue Service Office of Appeals with respect to the proposed 
        deficiency.
            ``(2) Requirement of preliminary notice.--Subject to 
        paragraph (3), any notice of deficiency sent to a taxpayer 
        under this section shall include notice of their right to a 
        hearing (as described in paragraph (1)).
            ``(3) Regulatory authority.--The Secretary shall prescribe 
        such regulations as may be necessary to carry out the purposes 
        of this section, including establishing procedures and 
        exceptions with respect to the right to a hearing established 
        under paragraph (1) and notice of such right under paragraph 
        (2).''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on the date of the enactment of the Act.
    (c) Ensuring Nationwide Access to Appeals Officers and Settlement 
Agents.--The Secretary of the Treasury shall ensure that not less than 
1 Appeals Officer and 1 Settlement Agent from the Office of Appeals of 
the Internal Revenue Service are assigned to each State and made 
available to the residents of each such State.

                  TITLE IV--NATIONAL TAXPAYER ADVOCATE

SEC. 401. MODIFICATIONS RELATING TO TAXPAYER ASSISTANCE ORDERS.

    (a) Clarification of Authority With Respect to Closing Agreements 
and Compromises.--Paragraph (2) of section 7811(b) is amended--
            (1) by redesignating subparagraphs (C) and (D) as 
        subparagraphs (D) and (E), respectively, and
            (2) by inserting after subparagraph (B) the following new 
        subparagraph:
                    ``(C) chapter 74 (relating to closing agreements 
                and compromises),''.
    (b) Appeal of Certain Modified or Rescinded Orders.--Subsection (c) 
of section 7811 is amended by adding at the end the following new 
sentence:
``If the Deputy Commissioner of Internal Revenue modifies or rescinds a 
Taxpayer Assistance Order, the National Taxpayer Advocate may appeal 
the decision to the Commissioner of Internal Revenue for a final 
determination.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to orders issued after the date of the enactment of this Act.

SEC. 402. TAXPAYER ADVOCATE DIRECTIVES.

    (a) In General.--Subchapter A of chapter 80 is amended by adding at 
the end the following new section:

``SEC. 7812. TAXPAYER ADVOCATE DIRECTIVES.

    ``(a) Authority To Issue.--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.
    ``(b) Authority To Modify or Rescind.--
            ``(1) Appeal.--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 rescind such Taxpayer Advocate Directive. If 
        the Deputy Commissioner of Internal Revenue modifies or 
        rescinds a Taxpayer Advocate Directive, the Deputy Commissioner 
        (or a delegate chosen by the Deputy Commissioner) shall provide 
        a detailed written explanation of the reasons for the 
        modification or rescission.
            ``(2) Final determination.--The National Taxpayer Advocate 
        may appeal such decision to the Commissioner of Internal 
        Revenue for a final determination. If the Commissioner does not 
        affirm the Taxpayer Advocate Directive in full, then the 
        Commissioner shall provide a written explanation of such 
        determination, and the reasons therefor, not later than 90 days 
        after the submission of such appeal. Such explanation shall 
        address in detail each issue raised in the Taxpayer Advocate 
        Directive.''.
    (b) Annual Report.--
            (1) In general.--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:
                                    ``(III) contain Taxpayer Advocate 
                                Directives issued under section 
                                7812;''.
            (2) Conforming amendments.--Clause (ii) of section 
        7803(c)(2)(B), as amended by paragraph (1), is amended--
                    (A) by striking ``subclauses (I), (II), and (III)'' 
                in subclauses (V), (VI), and (VII) thereof and 
                inserting ``subclauses (I), (II), (III), and (IV)'', 
                and
                    (B) in subclause (VIII)--
                            (i) by inserting ``or Taxpayer Advocate 
                        Directive'' after ``Taxpayer Assistance 
                        Order'', and
                            (ii) by inserting ``or 7812(a)'' after 
                        ``section 7811(b)''.
    (c) Clerical Amendment.--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:

``Sec. 7812. Taxpayer advocate directives.''.

SEC. 403. OFFICE OF THE TAXPAYER ADVOCATE ACCESS TO ADMINISTRATIVE 
              FILES.

    Section 7803(c) is amended by adding at the end the following new 
paragraph:
            ``(5) Access to taxpayer administrative files.--
                    ``(A) In general.--In furtherance of the functions, 
                responsibilities, and authorities described in this 
                subsection, and in addition to the authority provided 
                under section 6103(h)(1), taxpayer administrative files 
                shall, upon request, be open to inspection by or 
                disclosure to officers and employees of the Office of 
                the Taxpayer Advocate whose duties require such 
                inspection or disclosure.
                    ``(B) Meetings with irs.--In the case of a taxpayer 
                seeking the assistance of the Office of the Taxpayer 
                Advocate, any officer or employee of such Office may, 
                at the request of the taxpayer, attend any meeting 
                between the Internal Revenue Service and such 
                taxpayer.''.

SEC. 404. OFFICE OF THE TAXPAYER ADVOCATE OPERATIONS DURING A LAPSE IN 
              APPROPRIATIONS.

    Paragraph (2) of section 7803(c) is amended by adding at the end 
the following new subparagraph:
                    ``(E) Operations during a lapse in 
                appropriations.--During any lapse in appropriations for 
                the Internal Revenue Service, the Commissioner of 
                Internal Revenue, in consultation with the National 
                Taxpayer Advocate, shall designate as essential 
                employees a sufficient number of employees of the 
                Office of the Taxpayer Advocate to provide assistance 
                to taxpayers relating to enforcement actions carried 
                out during the lapse in appropriations.''.
                                 <all>