[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5444 Engrossed in House (EH)]

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115th CONGRESS
  2d Session
                                H. R. 5444

_______________________________________________________________________

                                 AN ACT


 
To amend the Internal Revenue Code of 1986 to modernize and improve the 
Internal Revenue Service, to amend the Internal Revenue Code of 1986 to 
   make permanent the Volunteer Income Tax Assistance matching grant 
   program, to require the Secretary of the Treasury to establish a 
program for the issuance of identity protection personal identification 
 numbers, to amend the Internal Revenue Code of 1986 to allow officers 
and employees of the Department of the Treasury to provide to taxpayers 
  information regarding low-income taxpayer clinics, to provide for a 
    single point of contact at the Internal Revenue Service for the 
  taxpayers who are victims of tax-related identity theft, to require 
notice from the Secretary of the Treasury in the case of any closure of 
  a Taxpayer Assistance Center, to amend the Internal Revenue Code of 
   1986 to require electronic filing of the annual returns of exempt 
organizations and provide for making such returns available for public 
   inspection, to amend the Internal Revenue Code of 1986 to improve 
   cybersecurity and taxpayer identity protection, and modernize the 
 information technology of the Internal Revenue Service, to amend the 
Internal Revenue Code of 1986 to restrict the immediate sale of seized 
property by the Secretary of the Treasury to perishable goods, 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. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF CONTENTS.

    (a) Divisions.--This Act is organized into nine divisions as 
follows:
            (1) Division A--Taxpayer First Act.
            (2) Division B--Return Preparation programs for Low-Income 
        Taxpayers.
            (3) Division C--Identity Protection Personal Identification 
        Numbers.
            (4) Division D--Provision of Information Regarding Low-
        Income Taxpayer Clinics.
            (5) Division E--Single Point of Contact for Tax-Related 
        Identity Theft Victims.
            (6) Division F--Notice From IRS Regarding Closure of 
        Taxpayer Assistance Center.
            (7) Division G--Mandatory Electronic Filing for Annual 
        Returns of Exempt Organizations.
            (8) Division H--21st Century IRS Act.
            (9) Division I--Rules for Seizure and Sale of Perishable 
        Goods Restricted to Only Perishable Goods.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Organization of Act into divisions; table of contents.
                     DIVISION A--TAXPAYER FIRST ACT

Sec. 10001. Short title; etc.
                  TITLE I--INDEPENDENT APPEALS PROCESS

Sec. 11101. Establishment of Internal Revenue Service Independent 
                            Office of Appeals.
                       TITLE II--IMPROVED SERVICE

Sec. 11201. Comprehensive customer service strategy.
Sec. 11202. IRS Free File Program.
Sec. 11203. Low-income exception for payments otherwise required in 
                            connection with a submission of an offer-
                            in-compromise.
                    TITLE III--SENSIBLE ENFORCEMENT

Sec. 11301. Internal Revenue Service seizure requirements with respect 
                            to structuring transactions.
Sec. 11302. Exclusion of interest received in action to recover 
                            property seized by the Internal Revenue 
                            Service based on structuring transaction.
Sec. 11303. Clarification of equitable relief from joint liability.
Sec. 11304. Modification of procedures for issuance of third-party 
                            summons.
Sec. 11305. Establishment of income threshold for referral to private 
                            debt collection.
Sec. 11306. Reform of notice of contact of third parties.
Sec. 11307. Modification of authority to issue designated summons.
Sec. 11308. Limitation on access of non-Internal Revenue Service 
                            employees to returns and return 
                            information.
                 TITLE IV--ORGANIZATIONAL MODERNIZATION

Sec. 11401. Modification of title of Commissioner of Internal Revenue 
                            and related officials.
Sec. 11402. Office of the National Taxpayer Advocate.
Sec. 11403. Elimination of IRS Oversight Board.
Sec. 11404. Modernization of Internal Revenue Service organizational 
                            structure.
                           TITLE V--TAX COURT

Sec. 11501. Disqualification of judge or magistrate judge of the Tax 
                            Court.
Sec. 11502. Opinions and judgments.
Sec. 11503. Title of special trial judge changed to magistrate judge of 
                            the Tax Court.
Sec. 11504. Repeal of deadwood related to Board of Tax Appeals.
    DIVISION B--RETURN PREPARATION PROGRAMS FOR LOW-INCOME TAXPAYERS

Sec. 12001. Return preparation programs for low-income taxpayers.
    DIVISION C--IDENTITY PROTECTION PERSONAL IDENTIFICATION NUMBERS

Sec. 13001. Identity protection personal identification numbers.
  DIVISION D--PROVISION OF INFORMATION REGARDING LOW-INCOME TAXPAYER 
                                CLINICS

Sec. 14001. Provision of information regarding low-income taxpayer 
                            clinics.
  DIVISION E--SINGLE POINT OF CONTACT FOR TAX-RELATED IDENTITY THEFT 
                                VICTIMS

Sec. 15001. Single point of contact for tax-related identity theft 
                            victims.
 DIVISION F--NOTICE FROM IRS REGARDING CLOSURE OF TAXPAYER ASSISTANCE 
                                 CENTER

Sec. 16001. Notice from IRS regarding closure of taxpayer assistance 
                            centers.
 DIVISION G--MANDATORY ELECTRONIC FILING FOR ANNUAL RETURNS OF EXEMPT 
                             ORGANIZATIONS

Sec. 17001. Mandatory electronic filing for annual returns of exempt 
                            organizations.
                    DIVISION H--21ST CENTURY IRS ACT

Sec. 18001. Short title; etc.
             TITLE I--CYBERSECURITY AND IDENTITY PROTECTION

Sec. 18101. Public-private partnership to address identity theft refund 
                            fraud.
Sec. 18102. Recommendations of Electronic Tax Administration Advisory 
                            Committee regarding identity theft refund 
                            fraud.
Sec. 18103. Information sharing and analysis center.
Sec. 18104. Compliance by contractors with confidentiality safeguards.
Sec. 18105. Report on electronic payments.
            TITLE II--DEVELOPMENT OF INFORMATION TECHNOLOGY

Sec. 18201. Management of Internal Revenue Service information 
                            technology.
Sec. 18202. Development of online accounts and portals.
Sec. 18203. Internet platform for Form 1099 filings.
  TITLE III--MODERNIZATION OF CONSENT-BASED INCOME VERIFICATION SYSTEM

Sec. 18301. Disclosure of taxpayer information for third-party income 
                            verification.
Sec. 18302. Limit redisclosures and uses of consent-based disclosures 
                            of tax return information.
              TITLE IV--EXPANDED USE OF ELECTRONIC SYSTEMS

Sec. 18401. Electronic filing of returns.
Sec. 18402. Uniform standards for the use of electronic signatures for 
                            disclosure authorizations to, and other 
                            authorizations of, practitioners.
Sec. 18403. Payment of taxes by debit and credit cards.
 DIVISION I--RULES FOR SEIZURE AND SALE OF PERISHABLE GOODS RESTRICTED 
                        TO ONLY PERISHABLE GOODS

Sec. 19001. Rules for seizure and sale of perishable goods restricted 
                            to only perishable goods.

                     DIVISION A--TAXPAYER FIRST ACT

SEC. 10001. SHORT TITLE; ETC.

    (a) Short Title.--This division may be cited as the ``Taxpayer 
First Act''.
    (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.
    (c) Table of Contents.--The table of contents of this division is 
as follows:

Sec. 10001. Short title; etc.
                  TITLE I--INDEPENDENT APPEALS PROCESS

Sec. 11101. Establishment of Internal Revenue Service Independent 
                            Office of Appeals.
                       TITLE II--IMPROVED SERVICE

Sec. 11201. Comprehensive customer service strategy.
Sec. 11202. IRS Free File Program.
Sec. 11203. Low-income exception for payments otherwise required in 
                            connection with a submission of an offer-
                            in-compromise.
                    TITLE III--SENSIBLE ENFORCEMENT

Sec. 11301. Internal Revenue Service seizure requirements with respect 
                            to structuring transactions.
Sec. 11302. Exclusion of interest received in action to recover 
                            property seized by the Internal Revenue 
                            Service based on structuring transaction.
Sec. 11303. Clarification of equitable relief from joint liability.
Sec. 11304. Modification of procedures for issuance of third-party 
                            summons.
Sec. 11305. Establishment of income threshold for referral to private 
                            debt collection.
Sec. 11306. Reform of notice of contact of third parties.
Sec. 11307. Modification of authority to issue designated summons.
Sec. 11308. Limitation on access of non-Internal Revenue Service 
                            employees to returns and return 
                            information.
                 TITLE IV--ORGANIZATIONAL MODERNIZATION

Sec. 11401. Modification of title of Commissioner of Internal Revenue 
                            and related officials.
Sec. 11402. Office of the National Taxpayer Advocate.
Sec. 11403. Elimination of IRS Oversight Board.
Sec. 11404. Modernization of Internal Revenue Service organizational 
                            structure.
                           TITLE V--TAX COURT

Sec. 11501. Disqualification of judge or magistrate judge of the Tax 
                            Court.
Sec. 11502. Opinions and judgments.
Sec. 11503. Title of special trial judge changed to magistrate judge of 
                            the Tax Court.
Sec. 11504. Repeal of deadwood related to Board of Tax Appeals.

                  TITLE I--INDEPENDENT APPEALS PROCESS

SEC. 11101. ESTABLISHMENT OF INTERNAL REVENUE SERVICE INDEPENDENT 
              OFFICE OF APPEALS.

    (a) In General.--Section 7803 is amended by adding at the end the 
following new subsection:
    ``(e) Independent Office of Appeals.--
            ``(1) Establishment.--There is established in the Internal 
        Revenue Service an office to be known as the `Internal Revenue 
        Service Independent Office of Appeals'.
            ``(2) Chief of appeals.--
                    ``(A) In general.--The Internal Revenue Service 
                Independent Office of Appeals shall be under the 
                supervision and direction of an official to be known as 
                the `Chief of Appeals'. The Chief of Appeals shall 
                report directly to the Administrator of the Internal 
                Revenue Service and shall be entitled to compensation 
                at the same rate as the highest rate of basic pay 
                established for the Senior Executive Service under 
                section 5382 of title 5, United States Code.
                    ``(B) Appointment.--The Chief of Appeals shall be 
                appointed by the Administrator of the Internal Revenue 
                Service without regard to the provisions of title 5, 
                United States Code, relating to appointments in the 
                competitive service or the Senior Executive Service.
                    ``(C) Qualifications.--An individual appointed 
                under subparagraph (B) shall have experience and 
                expertise in--
                            ``(i) administration of, and compliance 
                        with, Federal tax laws,
                            ``(ii) a broad range of compliance cases, 
                        and
                            ``(iii) management of large service 
                        organizations.
            ``(3) Purposes and duties of office.--It shall be the 
        function of the Internal Revenue Service Independent Office of 
        Appeals to resolve Federal tax controversies without litigation 
        on a basis which--
                    ``(A) is fair and impartial to both the Government 
                and the taxpayer,
                    ``(B) promotes a consistent application and 
                interpretation of, and voluntary compliance with, the 
                Federal tax laws, and
                    ``(C) enhances public confidence in the integrity 
                and efficiency of the Internal Revenue Service.
            ``(4) Right of appeal.--The resolution process described in 
        paragraph (3) shall be generally available to all taxpayers.
            ``(5) Limitation on designation of cases as not eligible 
        for referral to independent office of appeals.--
                    ``(A) In general.--If any taxpayer which is in 
                receipt of notice of deficiency authorized under 
                section 6212 requests referral to the Internal Revenue 
                Service Independent Office of Appeals and such request 
                is denied, the Administrator of the Internal Revenue 
                Service shall provide such taxpayer a written notice 
                which--
                            ``(i) provides a detailed description of 
                        the facts involved, the basis for the decision 
                        to deny the request, and a detailed explanation 
                        of how the basis of such decision applies to 
                        such facts, and
                            ``(ii) describes the procedures proscribed 
                        under subparagraph (C) for protesting the 
                        decision to deny the request.
                    ``(B) Report to congress.--The Administrator of the 
                Internal Revenue Service shall submit a written report 
                to Congress on an annual basis which includes the 
                number of requests described in subparagraph (A) which 
                were denied and the reasons (described by category) 
                that such requests were denied.
                    ``(C) Procedures for protesting denial of 
                request.--The Administrator of the Internal Revenue 
                Service shall prescribe procedures for protesting to 
                the Administrator of the Internal Revenue Service 
                (personally and not through any delegate) a denial of a 
                request described in subparagraph (A).
                    ``(D) Not applicable to frivolous positions.--This 
                paragraph shall not apply to a request for referral to 
                the Internal Revenue Service Independent Office of 
                Appeals which is denied on the basis that the issue 
                involved is a frivolous position (within the meaning of 
                section 6702(c)).
            ``(6) Staff.--
                    ``(A) In general.--All personnel in the Internal 
                Revenue Service Independent Office of Appeals shall 
                report to the Chief of Appeals.
                    ``(B) Access to staff of office of the chief 
                counsel.--The Chief of Appeals shall have authority to 
                obtain legal assistance and advice from the staff of 
                the Office of the Chief Counsel. The Chief Counsel 
                shall ensure that such assistance and advice is 
                provided by staff of the Office of the Chief Counsel 
                who were not involved in the case with respect to which 
                such assistance and advice is sought and who are not 
                involved in preparing such case for litigation.
            ``(7) Access to case files.--
                    ``(A) In general.--In the case of any specified 
                taxpayer with respect to which a conference with the 
                Internal Revenue Service Independent Office of Appeals 
                has been scheduled, the Chief of Appeals shall ensure 
                that such taxpayer is provided access to the 
                nonprivileged portions of the case file on record 
                regarding the disputed issues (other than documents 
                provided by the taxpayer to the Internal Revenue 
                Service) not later than 10 days before the date of such 
                conference.
                    ``(B) Taxpayer election to expedite conference.--If 
                the taxpayer so elects, subparagraph (A) shall be 
                applied by substituting `the date of such conference' 
                for `10 days before the date of such conference'.
                    ``(C) Specified taxpayer.--For purposes of this 
                paragraph--
                            ``(i) In general.--The term `specified 
                        taxpayer' means--
                                    ``(I) in the case of any taxpayer 
                                who is a natural person, a taxpayer 
                                whose adjusted gross income does not 
                                exceed $400,000, and
                                    ``(II) in the case of any other 
                                taxpayer, a taxpayer whose gross 
                                receipts do not exceed $5,000,000.
                            ``(ii) Aggregation rule.--Rules similar to 
                        the rules of section 448(c)(2) shall apply for 
                        purposes of clause (i)(II).''.
    (b) Conforming Amendments.--
            (1) The following provisions are each amended by striking 
        ``Internal Revenue Service Office of Appeals'' and inserting 
        ``Internal Revenue Service Independent Office of Appeals'':
                    (A) Section 6015(c)(4)(B)(ii)(I).
                    (B) Section 6320(b)(1).
                    (C) Subsections (b)(1) and (d)(3) of section 6330.
                    (D) Section 6603(d)(3)(B).
                    (E) Section 6621(c)(2)(A)(i).
                    (F) Section 7122(e)(2).
                    (G) Subsections (a), (b)(1), (b)(2), and (c)(1) of 
                section 7123.
                    (H) Subsections (c)(7)(B)(i, and (g)(2)(A) of 
                section 7430.
                    (I) Section 7522(b)(3).
                    (J) Section 7612(c)(2)(A).
            (2) Section 7430(c)(2) is amended by striking ``Internal 
        Revenue Service Office of Appeals'' each place it appears and 
        inserting ``Internal Revenue Service Independent Office of 
        Appeals''.
            (3) The heading of section 6330(d)(3) is amended by 
        inserting ``Independent'' after ``IRS''.
    (c) Other References.--Any reference in any provision of law, or 
regulation or other guidance, to the Internal Revenue Service Office of 
Appeals shall be treated as a reference to the Internal Revenue Service 
Independent Office of Appeals.
    (d) Savings Provisions.--Rules similar to the rules of paragraphs 
(2) through (6) of section 1001(b) of the Internal Revenue Service 
Restructuring and Reform Act of 1998 shall apply for purposes of this 
section (and the amendments made by this section).
    (e) Effective Date.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall take 
        effect on the date of the enactment of this Act.
            (2) Access to case files.--Section 7803(e)(7) of the 
        Internal Revenue Code of 1986, as added by subsection (a), 
        shall apply to conferences occurring after the date which is 1 
        year after the date of the enactment of this Act.

                       TITLE II--IMPROVED SERVICE

SEC. 11201. COMPREHENSIVE CUSTOMER SERVICE STRATEGY.

    (a) In General.--Not later than the date which is 1 year after the 
date of the enactment of this Act, the Secretary of the Treasury, after 
consultation with the National Taxpayer Advocate, shall submit to 
Congress a written comprehensive customer service strategy for the 
Internal Revenue Service. Such strategy shall include--
            (1) a plan to provide assistance to taxpayers that is 
        secure, designed to meet reasonable taxpayer expectations, and 
        adopts appropriate best practices of customer service provided 
        in the private sector, including online services, telephone 
        call back services, and training of employees providing 
        customer services,
            (2) a thorough assessment of the services that the Internal 
        Revenue Service can co-locate with other Federal services or 
        offer as self-service options,
            (3) proposals to improve Internal Revenue Service customer 
        service in the short term (the current and following fiscal 
        year), medium term (approximately 3 to 5 fiscal years), and 
        long term (approximately 10 fiscal years),
            (4) a plan to update guidance and training materials for 
        customer service employees of the Internal Revenue Service, 
        including the Internal Revenue Manual, to reflect such 
        strategy, and
            (5) identified metrics and benchmarks for quantitatively 
        measuring the progress of the Internal Revenue Service in 
        implementing such strategy.
    (b) Updated Guidance and Training Materials.--Not later than 2 
years after the date of the enactment of this Act, the Secretary of the 
Treasury shall make available the updated guidance and training 
materials described in subsection (a)(4) (including the Internal 
Revenue Manual). Such updated guidance and training materials 
(including the Internal Revenue Manual) shall be written in a manner so 
as to be easily understood by customer service employees of the 
Internal Revenue Service and shall provide clear instructions.

SEC. 11202. IRS FREE FILE PROGRAM.

    (a) In General.--
            (1) The Secretary of the Treasury, or the Secretary's 
        delegate, shall continue to operate the IRS Free File Program 
        as established by the Internal Revenue Service and published in 
        the Federal Register on November 4, 2002 (67 Fed. Reg. 67247), 
        including any subsequent agreements and governing rules 
        established pursuant thereto.
            (2) The IRS Free File Program shall continue to provide 
        free commercial-type online individual income tax preparation 
        and electronic filing services to the lowest 70 percent of 
        taxpayers by adjusted gross income. The number of taxpayers 
        eligible to receive such services each year shall be calculated 
        by the Internal Revenue Service annually based on prior year 
        aggregate taxpayer adjusted gross income data.
            (3) In addition to the services described in paragraph (2), 
        and in the same manner, the IRS Free File Program shall 
        continue to make available to all taxpayers (without regard to 
        income) a basic, online electronic fillable forms utility.
            (4) The IRS Free File Program shall continue to work 
        cooperatively with the private sector to provide the free 
        individual income tax preparation and the electronic filing 
        services described in paragraphs (2) and (3).
            (5) The IRS Free File Program shall work cooperatively with 
        State government agencies to enhance and expand the use of the 
        program to provide needed benefits to the taxpayer while 
        reducing the cost of processing returns.
    (b) Innovations.--The Secretary of the Treasury, or the Secretary's 
delegate, shall work with the private sector through the IRS Free File 
Program to identify and implement, consistent with applicable law, 
innovative new program features to improve and simplify the taxpayer's 
experience with completing and filing individual income tax returns 
through voluntary compliance.

SEC. 11203. LOW-INCOME EXCEPTION FOR PAYMENTS OTHERWISE REQUIRED IN 
              CONNECTION WITH A SUBMISSION OF AN OFFER-IN-COMPROMISE.

    (a) In General.--Section 7122(c) is amended by adding at the end 
the following new paragraph:
            ``(3) Exception for low-income taxpayers.--Paragraph (1), 
        and any user fee otherwise required in connection with the 
        submission of an offer-in-compromise, shall not apply to any 
        offer-in-compromise with respect to a taxpayer who is an 
        individual with adjusted gross income, as determined for the 
        most recent taxable year for which such information is 
        available, which does not exceed 250 percent of the applicable 
        poverty level (as determined by the Secretary).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to offers-in-compromise submitted after the date of the enactment of 
this Act.

                    TITLE III--SENSIBLE ENFORCEMENT

SEC. 11301. INTERNAL REVENUE SERVICE SEIZURE REQUIREMENTS WITH RESPECT 
              TO STRUCTURING TRANSACTIONS.

    Section 5317(c)(2) of title 31, United States Code, is amended--
            (1) by striking ``Any property'' and inserting the 
        following:
                    ``(A) In general.--Any property''; and
            (2) by adding at the end the following:
                    ``(B) Internal revenue service seizure requirements 
                with respect to structuring transactions.--
                            ``(i) Property derived from an illegal 
                        source.--Property may only be seized by the 
                        Internal Revenue Service pursuant to 
                        subparagraph (A) by reason of a claimed 
                        violation of section 5324 if the property to be 
                        seized was derived from an illegal source or 
                        the funds were structured for the purpose of 
                        concealing the violation of a criminal law or 
                        regulation other than section 5324.
                            ``(ii) Notice.--Not later than 30 days 
                        after property is seized by the Internal 
                        Revenue Service pursuant to subparagraph (A), 
                        the Internal Revenue Service shall--
                                    ``(I) make a good faith effort to 
                                find all persons with an ownership 
                                interest in such property; and
                                    ``(II) provide each such person 
                                with a notice of the seizure and of the 
                                person's rights under clause (iv).
                            ``(iii) Extension of notice under certain 
                        circumstances.--The Internal Revenue Service 
                        may apply to a court of competent jurisdiction 
                        for one 30-day extension of the notice 
                        requirement under clause (ii) if the Internal 
                        Revenue Service can establish probable cause of 
                        an imminent threat to national security or 
                        personal safety necessitating such extension.
                            ``(iv) Post-seizure hearing.--If a person 
                        with a property interest in property seized 
                        pursuant to subparagraph (A) by the Internal 
                        Revenue Service requests a hearing by a court 
                        of competent jurisdiction within 30 days after 
                        the date on which notice is provided under 
                        subclause (ii), such property shall be returned 
                        unless the court holds an adversarial hearing 
                        and finds within 30 days of such request (or 
                        such longer period as the court may provide, 
                        but only on request of an interested party) 
                        that there is probable cause to believe that 
                        there is a violation of section 5324 involving 
                        such property and probable cause to believe 
                        that the property to be seized was derived from 
                        an illegal source or the funds were structured 
                        for the purpose of concealing the violation of 
                        a criminal law or regulation other than section 
                        5324.''.

SEC. 11302. EXCLUSION OF INTEREST RECEIVED IN ACTION TO RECOVER 
              PROPERTY SEIZED BY THE INTERNAL REVENUE SERVICE BASED ON 
              STRUCTURING TRANSACTION.

    (a) In General.--Part III of subchapter B of chapter 1 is amended 
by inserting before section 140 the following new section:

``SEC. 139G. INTEREST RECEIVED IN ACTION TO RECOVER PROPERTY SEIZED BY 
              THE INTERNAL REVENUE SERVICE BASED ON STRUCTURING 
              TRANSACTION.

    ``Gross income shall not include any interest received from the 
Federal Government in connection with an action to recover property 
seized by the Internal Revenue Service pursuant to section 5317(c)(2) 
of title 31, United States Code, by reason of a claimed violation of 
section 5324 of such title.''.
    (b) Clerical Amendment.--The table of sections for part III of 
subchapter B of chapter 1 is amended by inserting before the item 
relating to section 140 the following new item:

``Sec. 139G. Interest received in action to recover property seized by 
                            the Internal Revenue Service based on 
                            structuring transaction.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to interest received on or after the date of the enactment of 
this Act.

SEC. 11303. CLARIFICATION OF EQUITABLE RELIEF FROM JOINT LIABILITY.

    (a) In General.--Section 6015 is amended--
            (1) in subsection (e), by adding at the end the following 
        new paragraph:
            ``(7) 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 or after the date of 
the enactment of this Act.

SEC. 11304. MODIFICATION OF PROCEDURES FOR ISSUANCE OF THIRD-PARTY 
              SUMMONS.

    (a) In General.--Section 7609(f) is amended by adding at the end 
the following flush sentence:
``The Secretary shall not issue any summons described in the preceding 
sentence unless the information sought to be obtained is narrowly 
tailored to information that pertains to the failure (or potential 
failure) of the person or group or class of persons referred to in 
paragraph (2) to comply with one or more provisions of the internal 
revenue law which have been identified for purposes of such 
paragraph.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to summonses served after the date of the enactment of this Act.

SEC. 11305. ESTABLISHMENT OF INCOME THRESHOLD FOR REFERRAL TO PRIVATE 
              DEBT COLLECTION.

    (a) In General.--Section 6306(d)(3) is amended by striking ``or'' 
at the end of subparagraph (C), by adding ``or'' at the end of 
subparagraph (D), and by inserting after subparagraph (D) the following 
new subparagraph:
                    ``(E) in the case of a tax receivable which is 
                identified by the Secretary (or the Secretary's 
                delegate) during the period beginning on the date which 
                is 180 days after the date of the enactment of this Act 
                and ending on December 31, 2019, a taxpayer who is an 
                individual with adjusted gross income, as determined 
                for the most recent taxable year for which such 
                information is available, which does not exceed 250 
                percent of the applicable poverty level (as determined 
                by the Secretary),''.
    (b) Effective Date.--The amendments made by this section shall 
apply to tax receivables identified by the Secretary (or the 
Secretary's delegate) after the date which is 180 days after the date 
of the enactment of this Act.

SEC. 11306. REFORM OF NOTICE OF CONTACT OF THIRD PARTIES.

    (a) In General.--Section 7602(c)(1) is amended to read as follows:
            ``(1) General notice.--An officer or employee of the 
        Internal Revenue Service may not contact any person other than 
        the taxpayer with respect to the determination or collection of 
        the tax liability of such taxpayer unless such contact occurs 
        during a period (not greater than 1 year) which is specified in 
        a notice which--
                    ``(A) informs the taxpayer that contacts with 
                persons other than the taxpayer are intended to be made 
                during such period, and
                    ``(B) except as otherwise provided by the 
                Secretary, is provided to the taxpayer not later than 
                45 days before the beginning of such period.
        Nothing in the preceding sentence shall prevent the issuance of 
        notices to the same taxpayer with respect to the same tax 
        liability with periods specified therein that, in the 
        aggregate, exceed 1 year. A notice shall not be issued under 
        this paragraph unless there is an intent at the time such 
        notice is issued to contact persons other than the taxpayer 
        during the period specified in such notice. The preceding 
        sentence shall not prevent the issuance of a notice if the 
        requirement of such sentence is met on the basis of the 
        assumption that the information sought to be obtained by such 
        contact will not be obtained by other means before such 
        contact.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to notices provided, and contacts of persons made, after the date which 
is 45 days after the date of the enactment of this Act.

SEC. 11307. MODIFICATION OF AUTHORITY TO ISSUE DESIGNATED SUMMONS.

    (a) In General.--Clause (i) of section 6503(j)(2)(A) is amended to 
read as follows:
                            ``(i) the issuance of such summons is 
                        preceded by a review and written approval of 
                        such issuance by the Administrator of the 
                        relevant operating division of the Internal 
                        Revenue Service and the Chief Counsel which--
                                    ``(I) states facts clearly 
                                establishing that the Secretary has 
                                made reasonable requests for the 
                                information that is the subject of the 
                                summons, and
                                    ``(II) is attached to such 
                                summons,''.
    (b) Establishment That Reasonable Requests for Information Were 
Made.--Subsection (j) of section 6503 is amended by adding at the end 
the following new paragraph:
            ``(4) Establishment that reasonable requests for 
        information were made.--In any court proceeding described in 
        paragraph (3), the Secretary shall establish that reasonable 
        requests were made for the information that is the subject of 
        the summons.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to summonses issued after the date of the enactment of this Act.

SEC. 11308. LIMITATION ON ACCESS OF NON-INTERNAL REVENUE SERVICE 
              EMPLOYEES TO RETURNS AND RETURN INFORMATION.

    (a) In General.--Section 7602 is amended by adding at the end the 
following new subsection:
    ``(f) Limitation on Access of Persons Other Than Internal Revenue 
Service Officers and Employees.--The Secretary shall not, under the 
authority of section 6103(n), provide any books, papers, records, or 
other data obtained pursuant to this section to any person authorized 
under section 6103(n), except when such person requires such 
information for the sole purpose of providing expert evaluation and 
assistance to the Internal Revenue Service. No person other than an 
officer or employee of the Internal Revenue Service or the Office of 
Chief Counsel may, on behalf of the Secretary, question a witness under 
oath whose testimony was obtained pursuant to this section.''.
    (b) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendment made by this section shall take effect on the date of 
        the enactment of this Act.
            (2) Application to contracts in effect.--The amendment made 
        by this section shall apply to any contract in effect under 
        section 6103(n) of the Internal Revenue Code of 1986, pursuant 
        to temporary Treasury Regulation section 301.7602-1T proposed 
        in Internal Revenue Bulletin 2014-28, Treasury Regulation 
        section 301.7602-1(b)(3), or any similar or successor 
        regulation, that is in effect on the date of the enactment of 
        this Act.

                 TITLE IV--ORGANIZATIONAL MODERNIZATION

SEC. 11401. MODIFICATION OF TITLE OF COMMISSIONER OF INTERNAL REVENUE 
              AND RELATED OFFICIALS.

    (a) In General.--Section 7803(a)(1)(A) is amended by striking 
``Commissioner of Internal Revenue'' and inserting ``Administrator of 
the Internal Revenue Service''.
    (b) Conforming Amendments Related to Section 7803.--
            (1) Subsections (a)(1)(B), (a)(1)(C), (b)(3), (c)(1)(B)(i), 
        and (c)(1)(B)(ii) of section 7803 are each amended by striking 
        ``Commissioner of Internal Revenue'' and inserting 
        ``Administrator of the Internal Revenue Service''.
            (2) Section 7803(b)(2)(A) is amended by striking 
        ``Commissioner's'' and inserting ``Administrator's''.
            (3) Subsections (a)(1)(D), (a)(1)(E), (a)(2), (a)(3), 
        (a)(4), (b)(2)(A), (b)(2)(D), (b)(3), (c)(2)(B)(iii), 
        (c)(2)(C)(iv), and (c)(3) of section 7803, as amended by the 
        preceding paragraphs of this subsection, are amended by 
        striking ``Commissioner'' each place it appears therein and 
        inserting ``Administrator''.
            (4) The heading of section 7803 is amended by striking 
        ``commissioner of internal revenue'' and inserting 
        ``administrator of the internal revenue service''.
            (5) The heading of section 7803(a) is amended by striking 
        ``Commissioner of Internal Revenue'' and inserting 
        ``Administrator of the Internal Revenue Service''.
            (6) The heading of section 7803(c)(3) is amended by 
        striking ``Commissioner'' and inserting ``Administrator''.
            (7) The table of sections for subchapter A of chapter 80 is 
        amended by striking the item relating to section 7803 and 
        inserting the following new item:

``Sec. 7803. Administrator of the Internal Revenue Service; other 
                            officials.''.
    (c) Other Conforming Amendments to the Internal Revenue Code of 
1986.--
            (1) Section 6307(c) is amended by striking ``Commissioner 
        of Internal Revenue'' and inserting ``Administrator of the 
        Internal Revenue Service''.
            (2) Section 6673(a)(2)(B) is amended by striking 
        ``Commissioner of Internal Revenue'' and inserting 
        ``Administrator of the Internal Revenue Service''.
            (3) Section 6707(c) is amended by striking ``Commissioner'' 
        and inserting ``Administrator''.
            (4) Section 6707A(d) is amended--
                    (A) in paragraph (1), by striking ``Commissioner of 
                Internal Revenue'' and inserting ``Administrator of the 
                Internal Revenue Service'', and
                    (B) in paragraph (3), by striking ``Commissioner'' 
                each place it appears and inserting ``Administrator''.
            (5)(A) Subsections (a) and (g) of section 7345 are each 
        amended by striking ``Commissioner of Internal Revenue'' and 
        inserting ``Administrator of the Internal Revenue Service''.
            (B) Section 7345(g) is amended--
                    (i) by striking ``Deputy Commissioner for Services 
                and Enforcement'' and inserting ``Deputy Administrator 
                for Services and Enforcement'', and
                    (ii) by striking ``Commissioner of an operating 
                division'' and inserting ``Administrator of an 
                operating division''.
            (C) Subsections (c)(1), (d) and (e)(1) of section 7345 are 
        each amended by striking ``Commissioner'' each place it appears 
        therein and inserting ``Administrator''.
            (6) Section 7435(e) is amended by striking ``Commissioner'' 
        each place it appears therein and inserting ``Administrator''.
            (7) Section 7409(a)(2)(B) is amended by striking 
        ``Commissioner of Internal Revenue'' and inserting 
        ``Administrator of the Internal Revenue Service''.
            (8) Section 7608(c) is amended--
                    (A) in paragraph (1), by striking ``the 
                Commissioner of Internal Revenue (or, if designated by 
                the Commissioner, the Deputy Commissioner or an 
                Assistant Commissioner of Internal Revenue)'' and 
                inserting ``the Administrator of the Internal Revenue 
                Service (or, if designated by the Administrator, the 
                Deputy Administrator or an Assistant Administrator of 
                the Internal Revenue Service)'', and
                    (B) in paragraph (2) by striking ``Commissioner'' 
                and inserting ``Administrator''.
            (9) Section 7611(b)(3)(C) is amended by striking ``regional 
        commissioner'' and inserting ``regional administrator''.
            (10) Section 7701(a)(13) is amended to read as follows:
            ``(13) Administrator.--The term `Administrator', except 
        where the context clearly indicates otherwise, means the 
        Administrator of the Internal Revenue Service.''.
            (11)(A) Section 7804(a) is amended by striking 
        ``Commissioner of Internal Revenue'' and inserting 
        ``Administrator of the Internal Revenue Service''.
            (B) Subsections (a), (b)(1), and (b)(2) of section 7804(a), 
        as amended by subparagraph (A), are each amended by striking 
        ``Commissioner'' each place it appears therein and inserting 
        ``Administrator''.
            (12) Section 7811(c)(1) is amended by striking ``the 
        Commissioner of Internal Revenue, or the Deputy Commissioner of 
        Internal Revenue'' and inserting ``the Administrator of the 
        Internal Revenue Service, or the Deputy Commissioner of the 
        Internal Revenue Service''.
    (d) Amendments to Section 8D of the Inspector General Act of 
1978.--
            (1) Subsections (g)(2), (k)(1)(C), (l)(1), and (l)(2)(A) of 
        section 8D of the Inspector General Act of 1978 are each 
        amended by striking ``Commissioner of Internal Revenue'' and 
        inserting ``Administrator of the Internal Revenue Service''.
            (2) Section 8D(l)(2)(B) of such Act is amended by striking 
        ``Commissioner'' each place it appears therein and inserting 
        ``Administrator''.
    (e) Other References.--Any reference in any provision of law, or 
regulation or other guidance, to the Commissioner of Internal Revenue, 
or to any Deputy or Assistant Commissioner of Internal Revenue, or to a 
Commissioner of any division or region of the Internal Revenue Service, 
shall be treated as a reference to the Administrator of the Internal 
Revenue Service, or to the appropriate Deputy or Assistant 
Administrator of the Internal Revenue Service, or to the appropriate 
Administrator of such division or region, respectively.
    (f) Continuity.--In the case of any individual appointed by the 
President, by and with the advice and consent of the Senate, as 
Commissioner of Internal Revenue under section 7803(a)(1)(A) of the 
Internal Revenue Code of 1986, and serving in such position immediately 
before the date of the enactment of this Act, the amendments made by 
this section shall be construed as changing the title of such 
individual and shall not be construed to--
            (1) require the reappoint of such individual under such 
        section, or
            (2) alter the remaining term of such person under section 
        7803(a)(1)(B).

SEC. 11402. OFFICE OF THE NATIONAL TAXPAYER ADVOCATE.

    (a) Taxpayer Advocate Directives.--
            (1) In general.--Section 7803(c) is amended by adding at 
        the end the following new paragraph:
            ``(5) Taxpayer advocate directives.--In the case of any 
        Taxpayer Advocate Directive issued by the National Taxpayer 
        Advocate pursuant to a delegation of authority from the 
        Administrator of the Internal Revenue Service--
                    ``(A) the Administrator or a Deputy Administrator 
                shall modify, rescind, or ensure compliance with such 
                directive not later than 90 days after the issuance of 
                such directive, and
                    ``(B) in the case of any directive which is 
                modified or rescinded by a Deputy Administrator, the 
                National Taxpayer Advocate may (not later than 90 days 
                after such modification or rescission) appeal to the 
                Administrator and the Administrator shall (not later 
                than 90 days after such appeal is made) ensure 
                compliance with such directive as issued by the 
                National Taxpayer Advocate or provide the National 
                Taxpayer Advocate with a detailed description of the 
                reasons for any modification or rescission made or 
                upheld by the Administrator pursuant to such appeal.''.
            (2) Report to certain committees of congress regarding 
        directives.--Section 7803(c)(2)(B)(ii) is amended by 
        redesignating subclauses (VIII) through (XI) as subclauses (IX) 
        through (XII), respectively, and by inserting after subclause 
        (VII) the following new subclause:
                                    ``(VIII) identify any Taxpayer 
                                Advocate Directive which was not 
                                honored by the Internal Revenue Service 
                                in a timely manner, as specified under 
                                paragraph (5);''.
    (b) National Taxpayer Advocate Annual Reports to Congress.--
            (1) Inclusion of most serious taxpayer problems.--Section 
        7803(c)(2)(B)(ii)(III) is amended by striking ``at least 20'' 
        and inserting ``the 10''.
            (2) Coordination with treasury inspector general for tax 
        administration.--Section 7803(c)(2) is amended by adding at the 
        end the following new subparagraph:
                    ``(E) Coordination with treasury inspector general 
                for tax administration.--Before beginning any research 
                or study, the National Taxpayer Advocate shall 
                coordinate with the Treasury Inspector General for Tax 
                Administration to ensure that the National Taxpayer 
                Advocate does not duplicate any action that the 
                Treasury Inspector General for Tax Administration has 
                already undertaken or has a plan to undertake.''.
            (3) Statistical support.--
                    (A) In general.--Section 6108 is amended by adding 
                at the end the following new subsection:
    ``(d) Statistical Support for National Taxpayer Advocate.--The 
Secretary shall, upon request of the National Taxpayer Advocate, 
provide the National Taxpayer Advocate with statistical support in 
connection with the preparation by the National Taxpayer Advocate of 
the annual report described in section 7803(c)(2)(B)(ii). Such 
statistical support shall include statistical studies, compilations, 
and the review of information provided by the National Taxpayer 
Advocate for statistical validity and sound statistical methodology.''.
                    (B) Disclosure of review.--Section 
                7803(c)(2)(B)(ii), as amended by subsection (a), is 
                amended by redesignating subclause (XII) as subclause 
                (XIII) and by inserting after subclause (XI) the 
                following new subclause:
                                    ``(XII) with respect to any 
                                statistical information included in 
                                such report, include a statement of 
                                whether such statistical information 
                                was reviewed or provided by the 
                                Secretary under section 6108(d) and, if 
                                so, whether the Secretary determined 
                                such information to be statistically 
                                valid and based on sound statistical 
                                methodology.''.
                    (C) Conforming amendment.--Section 
                7803(c)(2)(B)(iii) is amended by adding at the end the 
                following: ``The preceding sentence shall not apply 
                with respect to statistical information provided to the 
                Secretary for review, or received from the Secretary, 
                under section 6108(d).''.
    (c) Salary of National Taxpayer Advocate.--Section 7803(c)(1)(B)(i) 
is amended by striking ``, or, if the Secretary of the Treasury so 
determines, at a rate fixed under section 9503 of such title''.
    (d) Effective Date.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall take 
        effect on the date of the enactment of this Act.
            (2) Salary of national taxpayer advocate.--The amendment 
        made by subsection (c) shall apply to compensation paid to 
        individuals appointed as the National Taxpayer Advocate after 
        the date of the enactment of this Act.

SEC. 11403. ELIMINATION OF IRS OVERSIGHT BOARD.

    (a) In General.--Subchapter A of chapter 80 is amended by striking 
section 7802 (and by striking the item relating to such section in the 
table of sections of such subchapter).
    (b) Conforming Amendments.--
            (1) Section 4946(c) is amended by adding ``or'' at the end 
        of paragraph (5), by striking ``, or'' at the end of paragraph 
        (6) and inserting a period, and by striking paragraph (7).
            (2) Section 6103(h) is amended by striking paragraph (6).
            (3) Section 7803(a) is amended by striking paragraph (4).
            (4) Section 7803(c)(1)(B)(ii) is amended by striking ``and 
        the Oversight Board''.
            (5) Section 7803(c)(2)(B)(iii) is amended by striking ``the 
        Oversight Board,''.
            (6) Section 8D of the Inspector General Act of 1978 is 
        amended--
                    (A) in subsections (g)(2) and (h), by striking 
                ``the Internal Revenue Service Oversight Board and'',
                    (B) in subsection (l)(1), by striking ``or the 
                Internal Revenue Service Oversight Board'', and
                    (C) in subsection (l)(2), by striking ``and the 
                Internal Revenue Service Oversight Board''.

SEC. 11404. MODERNIZATION OF INTERNAL REVENUE SERVICE ORGANIZATIONAL 
              STRUCTURE.

    (a) In General.--Not later than September 30, 2020, the 
Administrator of the Internal Revenue Service shall submit to Congress 
a comprehensive written plan to redesign the organization of the 
Internal Revenue Service. Such plan shall--
            (1) ensure the successful implementation of the priorities 
        specified by Congress in this Act,
            (2) prioritize taxpayer services to ensure that all 
        taxpayers easily and readily receive the assistance that they 
        need,
            (3) streamline the structure of the agency including 
        minimizing the duplication of services and responsibilities 
        within the agency,
            (4) best position the Internal Revenue Service to combat 
        cybersecurity and other threats to the Internal Revenue 
        Service, and
            (5) address whether the Criminal Investigation Division of 
        the Internal Revenue Service should report directly to the 
        Administrator.
    (b) Repeal of Restriction on Organizational Structure of Internal 
Revenue Service.--Paragraph (3) of section 1001(a) of the Internal 
Revenue Service Restructuring and Reform Act of 1998 shall cease to 
apply beginning 1 year after the date on which the Administrator of the 
Internal Revenue Service submits to Congress the plan described in 
subsection (a).

                           TITLE V--TAX COURT

SEC. 11501. DISQUALIFICATION OF JUDGE OR MAGISTRATE JUDGE OF THE TAX 
              COURT.

    (a) In General.--Part II of subchapter C of chapter 76 is amended 
by adding at the end the following new section:

``SEC. 7467. DISQUALIFICATION OF JUDGE OR MAGISTRATE JUDGE OF THE TAX 
              COURT.

    ``Section 455 of title 28, United States Code, shall apply to 
judges and magistrate judges of the Tax Court and to proceedings of the 
Tax Court.''.
    (b) Clerical Amendment.--The table of sections for such part is 
amended by adding at the end the following new item:

``Sec. 7467. Disqualification of judge or magistrate judge of the Tax 
                            Court.''.

SEC. 11502. OPINIONS AND JUDGMENTS.

    (a) In General.--Section 7459 is amended by striking all the 
precedes subsection (c) and inserting the following:

``SEC. 7459. OPINIONS AND JUDGMENTS.

    ``(a) Requirement.--An opinion upon any proceeding instituted 
before the Tax Court and a judgment thereon shall be made as quickly as 
practicable. The judgment shall be made by a judge in accordance with 
the opinion of the Tax Court, and such judgment so made shall, when 
entered, be the judgment of the Tax Court.
    ``(b) Inclusion of Findings of Fact in Opinion.--It shall be the 
duty of the Tax Court and of each division to include in its opinion or 
memorandum opinion upon any proceeding, its findings of fact. The Tax 
Court shall issue in writing all of its findings of fact, opinions, and 
memorandum opinions. Subject to such conditions as the Tax Court may by 
rule provide, the requirements of this subsection and of section 7460 
are met if findings of fact or opinion are stated orally and recorded 
in the transcript of the proceedings.''.
    (b) Conforming Amendments to Section 7459.--
            (1) Subsections (c), (d), (e), and (f) of section 7459 are 
        each amended by striking ``decision'' each place it appears and 
        inserting ``judgment''.
            (2) The headings of subsections (c), (d), and (e) of 
        section 7459 are each amended by striking ``Decision'' and 
        inserting ``Judgment''.
            (3) The item relating to section 7459 in the table of 
        sections for part II of subchapter C of chapter 76 is amended 
        to read as follows:

``Sec. 7459. Opinions and judgments.''.
    (c) Other Conforming Amendments.--
            (1) The following provisions are each amended by striking 
        ``decision'' and inserting ``judgment'':
                    (A) Section 1313(a)(1).
                    (B) Section 6213(a).
                    (C) Section 6214(d).
                    (D) Section 6225(a)(2).
                    (E) Section 6226(g).
                    (F) Section 6228(a)(6).
                    (G) Subsections (a)(3)(B) and (c)(1)(A)(ii) of 
                section 6230.
                    (H) Section 6247(d).
                    (I) Section 6252(e).
                    (J) Section 6404(h)(2)(C).
                    (K) Section 6503(a)(1).
                    (L) Section 6673(a)(1)(C).
                    (M) Subsections (c), (f), and (g) of section 6861.
                    (N) Section 6863(b)(3)(C).
                    (O) Section 7428(a).
                    (P) Section 7428(c)(1)(C)(i).
                    (Q) Section 7430(f)(3).
                    (R) Section 7436(c)(2).
                    (S) Section 7461(b)(2).
                    (T) Subsections (a)(4), (b), and (d) of section 
                7463.
                    (U) Subsections (a)(2)(B) and (b)(4) of section 
                7476.
                    (V) Section 7477(a).
                    (W) Section 7478(a)(2).
                    (X) Subsections (a)(2) and (c) of section 7479.
            (2) The following provisions are each amended by striking 
        ``decision'' each place it appears and inserting ``judgment'':
                    (A) Subsections (a) and (b)(3) of section 6215.
                    (B) Section 6226(h).
                    (C) Section 6247(e).
                    (D) Subsections (d) and (e) of section 6861.
                    (E) Section 6863(b)(2).
                    (F) Section 7422.
                    (G) Subsections (a) and (b) of section 7460.
                    (H) Subsections (a), (b), (c), and (d) of section 
                7463.
                    (I) Section 7482.
                    (J) Section 7483.
                    (K) Section 7485(b).
                    (L) Section 7481.
            (3) Sections 7422 and 7482 are each amended by striking 
        ``decisions'' each place it appears and inserting 
        ``judgments''.
            (4) Section 7430(f)(1) is amended by striking ``decision 
        or'' both places it appears.
            (5) Subsections (a) and (b) of section 7460 are each 
        amended by striking ``report'' each place it appears and 
        inserting ``opinion''.
            (6) Section 7461(a) is amended--
                    (A) by striking ``reports'' and inserting 
                ``opinions'', and
                    (B) by striking ``report'' and inserting 
                ``opinion''.
            (7) Section 7462 is amended by striking ``reports'' each 
        place it appears and inserting ``opinions''.
            (8) Section 7487(1) is amended by striking ``decisions'' 
        and inserting ``judgments''.
            (9) The headings of sections 6214(b), 7463(b), 7481(a), 
        7481(b), 7481(d), and 7485(b) are each amended by striking 
        ``Decisions'' and inserting ``Judgments''.
            (10) The headings of sections 6226(h), 6247(e), 6861(c), 
        6861(d), 7443A(c), 7481(a)(2), and 7481(a)(3) are each amended 
        by striking ``Decision'' and inserting ``Judgment''.
            (11) The headings of sections 6863(b)(2), 6863(b)(3), 
        7430(f)(3), and 7482(a)(2)(B) are each amended by striking 
        ``decision'' and inserting ``judgment''.
            (12) The heading of section 7436(c)(2) is amended by 
        striking ``decisions'' and inserting ``judgment''.
            (13) The heading of section 7460(a) is amended by striking 
        ``Reports'' and inserting ``Opinions''.
            (14) The heading of section 7462 is amended by striking 
        ``reports'' and inserting ``opinions''.
            (15) The heading of subchapter D of chapter 76 is amended 
        by striking ``Decisions'' and inserting ``Judgments''.
            (16) The heading of section 7481 is amended by striking 
        ``decision'' and inserting ``judgment''.
            (17) The item relating to section 7462 in the table of 
        sections for part II of subchapter C of chapter 76 is amended 
        to read as follows:

``Sec. 7462. Publication of opinions.''.
            (18) The item relating to subchapter D in the table of 
        subchapters for chapter 76 is amended to read as follows:

        ``subchapter d.--court review of tax court judgments''.

            (19) The item relating to section 7481 in the table of 
        sections for part III of subchapter D of chapter 76 is amended 
        to read as follows:

``Sec. 7481. Date when Tax Court judgment becomes final.''.
    (d) Continuing Effect of Legal Documents.--All orders, decisions, 
reports, rules, permits, agreements, grants, contracts, certificates, 
licenses, registrations, privileges, and other administrative actions, 
in connection with the Tax Court, which are in effect at the time this 
section takes effect, or were final before the effective date of this 
section and are to become effective on or after the effective date of 
this section, shall continue in effect according to their terms until 
modified, terminated, superseded, set aside, or revoked in accordance 
with law by the Tax Court.

SEC. 11503. TITLE OF SPECIAL TRIAL JUDGE CHANGED TO MAGISTRATE JUDGE OF 
              THE TAX COURT.

    (a) In General.--Section 7443A is amended--
            (1) by striking ``special trial judges'' in subsections (a) 
        and (e) and inserting ``magistrate judges of the Tax Court'',
            (2) by striking ``special trial judges of the court'' in 
        subsection (b) and inserting ``magistrate judges of the Tax 
        Court'', and
            (3) by striking ``special trial judge'' in subsections (c) 
        and (d) and inserting ``magistrate judge of the Tax Court''.
    (b) Conforming Amendments.--
            (1) The heading of section 7443A is amended by striking 
        ``special trial judges'' and inserting ``magistrate judges of 
        the tax court''.
            (2) The heading of section 7443A(b) is amended by striking 
        ``Special Trial Judges'' and inserting ``Magistrate Judges of 
        the Tax Court''.
            (3) The item relating to section 7443A in the table of 
        sections for part I of subchapter C of chapter 76 is amended to 
        read as follows:

``Sec. 7443A. Magistrate judges of the Tax Court.''.
            (4) The heading of section 7448 is amended by striking 
        ``special trial judges'' and inserting ``magistrate judges of 
        the tax court''.
            (5) Section 7448 is amended--
                    (A) by striking ``special trial judge's'' each 
                place it appears in subsections (a)(6), (c)(1), (d), 
                and (m)(1) and inserting ``magistrate judge of the Tax 
                Court's'', and
                    (B) by striking ``special trial judge'' each place 
                it appears other than in subsection (n) and inserting 
                ``magistrate judge of the Tax Court''.
            (6) Section 7448(n) is amended--
                    (A) by striking ``special trial judge which are 
                allowable'' and inserting ``magistrate judge of the Tax 
                Court which are allowable'', and
                    (B) by striking ``special trial judge of the Tax 
                Court'' both places it appears and inserting 
                ``magistrate judge of the Tax Court''.
            (7) The heading of section 7448(b)(2) is amended by 
        striking ``Special trial judges'' and inserting ``Magistrate 
        judges of the tax court''.
            (8) The item relating to section 7448 in the table of 
        sections for part I of subchapter C of chapter 76 is amended to 
        read as follows:

``Sec. 7448. Annuities to surviving spouses and dependent children of 
                            judges and magistrate judges of the Tax 
                            Court.''.
            (9) Section 7456(a) is amended--
                    (A) by striking ``special trial judge'' each place 
                it appears and inserting ``magistrate judge'', and
                    (B) by striking ``(or by the clerk'' and inserting 
                ``of the Tax Court (or by the clerk''.
            (10) Section 7466(a) is amended by striking ``special trial 
        judge'' and inserting ``magistrate judge''.
            (11) Section 7470A is amended by striking ``special trial 
        judges'' both places it appears in subsections (a) and (b) and 
        inserting ``magistrate judges''.
            (12) Section 7471(a)(2)(A) is amended by striking ``special 
        trial judges'' and inserting ``magistrate judges''.
            (13) Section 7471(c) is amended--
                    (A) by striking ``Special Trial Judges'' in the 
                heading and inserting ``Magistrate Judges of the Tax 
                Court'', and
                    (B) by striking ``special trial judges'' and 
                inserting ``magistrate judges''.

SEC. 11504. REPEAL OF DEADWOOD RELATED TO BOARD OF TAX APPEALS.

    (a) Section 7459 is amended by striking subsection (f) and 
redesignating subsection (g) as subsection (f).
    (b) Section 7447(a)(3) is amended to read as follows:
            ``(3) In any determination of length of service as judge or 
        as a judge of the Tax Court of the United States there shall be 
        included all periods (whether or not consecutive) during which 
        an individual served as judge.''.

    DIVISION B--RETURN PREPARATION PROGRAMS FOR LOW-INCOME TAXPAYERS

SEC. 12001. RETURN PREPARATION PROGRAMS FOR LOW-INCOME TAXPAYERS.

    (a) In General.--Chapter 77 of the Internal Revenue Code of 1986 is 
amended by inserting after section 7526 the following new section:

``SEC. 7526A. RETURN PREPARATION PROGRAMS FOR LOW-INCOME TAXPAYERS.

    ``(a) Establishment of Volunteer Income Tax Assistance Matching 
Grant Program.--The Secretary shall establish a Community Volunteer 
Income Tax Assistance Matching Grant Program under which 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 assisting low-income taxpayers 
and members of underserved populations.
    ``(b) Use of Funds.--
            ``(1) In general.--Qualified return preparation programs 
        may use grants received under this section for--
                    ``(A) ordinary and necessary costs associated with 
                program operation in accordance with cost principles 
                under the applicable Office of Management and Budget 
                circular, including--
                            ``(i) wages or salaries of persons 
                        coordinating the activities of the program,
                            ``(ii) developing training materials, 
                        conducting training, and performing quality 
                        reviews of the returns prepared under the 
                        program,
                            ``(iii) equipment purchases, and
                            ``(iv) vehicle-related expenses associated 
                        with remote or rural tax preparation services,
                    ``(B) outreach and educational activities described 
                in subsection (c)(2)(B), and
                    ``(C) services related to financial education and 
                capability, asset development, and the establishment of 
                savings accounts in connection with tax return 
                preparation.
            ``(2) Requirement of matching funds.--A qualified return 
        preparation program must provide matching funds on a dollar-
        for-dollar basis for all grants provided under this section. 
        Matching funds may include--
                    ``(A) the salary (including fringe benefits) of 
                individuals performing services for the program,
                    ``(B) the cost of equipment used in the program, 
                and
                    ``(C) other ordinary and necessary costs associated 
                with the program.
        Indirect expenses, including general overhead of any entity 
        administering the program, shall not be counted as matching 
        funds.
    ``(c) Application.--
            ``(1) In general.--Each applicant for a grant under this 
        section shall submit an application to the Secretary at such 
        time, in such manner, and containing such information as the 
        Secretary may reasonably require.
            ``(2) Priority.--In awarding grants under this section, the 
        Secretary shall give priority to applications which 
        demonstrate--
                    ``(A) assistance to low-income taxpayers, with 
                emphasis on outreach to, and services for, such 
                taxpayers,
                    ``(B) taxpayer outreach and educational activities 
                relating to eligibility and availability of income 
                supports available through this title, including the 
                earned income tax credit, and
                    ``(C) specific outreach and focus on one or more 
                underserved populations.
            ``(3) Amounts taken into account.--In determining matching 
        grants under this section, the Secretary shall only take into 
        account amounts provided by the qualified return preparation 
        program for expenses described in subsection (b).
    ``(d) Program Adherence.--
            ``(1) In general.--The Secretary shall establish procedures 
        for, and shall conduct not less frequently than once every 5 
        calendar years during which a qualified return preparation 
        program is operating under a grant under this section, periodic 
        site visits--
                    ``(A) to ensure the program is carrying out the 
                purposes of this section, and
                    ``(B) to determine whether the program meets such 
                program adherence standards as the Secretary shall by 
                regulation or other guidance prescribe.
            ``(2) Additional requirements for grant recipients not 
        meeting program adherence standards.--In the case of any 
        qualified return preparation program which--
                    ``(A) is awarded a grant under this section, and
                    ``(B) is subsequently determined--
                            ``(i) not to meet the program adherence 
                        standards described in paragraph (1)(B), or
                            ``(ii) not to be otherwise carrying out the 
                        purposes of this section,
        such program shall not be eligible for any additional grants 
        under this section unless such program provides sufficient 
        documentation of corrective measures established to address any 
        such deficiencies determined.
    ``(e) Definitions.--For purposes of this section--
            ``(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,
                    ``(B) which is administered by a qualified entity,
                    ``(C) in which all 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 an eligible organization,
                            ``(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 
                        pursuant to the grant program under this 
                        section.
                    ``(B) Eligible organization.--The term `eligible 
                organization' means--
                            ``(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. 1002), 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) and exempt from tax under section 
                        501(a),
                            ``(iii) a local government agency, 
                        including--
                                    ``(I) a county or municipal 
                                government agency, and
                                    ``(II) an Indian tribe, as defined 
                                in section 4(13) of the Native American 
                                Housing Assistance and Self-
                                Determination Act of 1996 (25 U.S.C. 
                                4103(13)), including any tribally 
                                designated housing entity (as defined 
                                in section 4(22) of such Act (25 U.S.C. 
                                4103(22))), tribal subsidiary, 
                                subdivision, or other wholly owned 
                                tribal entity,
                            ``(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) in the case of low-income taxpayers 
                        and members of underserved populations with 
                        respect to which no organizations described in 
                        the preceding clauses are available--
                                    ``(I) a State government agency, or
                                    ``(II) an office providing 
                                Cooperative Extension services (as 
                                established at the land-grant colleges 
                                and universities under the Smith-Lever 
                                Act of May 8, 1914).
            ``(3) Low-income taxpayers.--The term `low-income taxpayer' 
        means a taxpayer whose income for the taxable year does not 
        exceed an amount equal to the completed phaseout amount under 
        section 32(b) for a married couple filing a joint return with 3 
        or more qualifying children, as determined in a revenue 
        procedure or other published guidance.
            ``(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, members of the Armed Forces 
        and their spouses, and the elderly.
    ``(f) Special Rules and Limitations.--
            ``(1) Duration of grants.--Upon application of a qualified 
        return preparation program, the Secretary is authorized to 
        award a multi-year grant not to exceed 3 years.
            ``(2) Aggregate limitation.--Unless otherwise provided by 
        specific appropriation, the Secretary shall not allocate more 
        than $30,000,000 per fiscal year (exclusive of costs of 
        administering the program) to grants under this section.
    ``(g) Promotion of Programs.--
            ``(1) In general.--The Secretary shall promote tax 
        preparation through qualified return preparation programs 
        through the use of mass communications and other means.
            ``(2) Provision of information regarding qualified return 
        preparation programs.--The Secretary may provide taxpayers 
        information regarding qualified return preparation programs 
        receiving grants under this section.
            ``(3) VITA grantee referral.--Qualified return preparation 
        programs receiving a grant under this section are encouraged, 
        in appropriate cases, to--
                    ``(A) advise taxpayers of the availability of, and 
                eligibility requirements for receiving, advice and 
                assistance from qualified low-income taxpayer clinics 
                receiving funding under section 7526, and
                    ``(B) provide information regarding the location 
                of, and contact information for, such clinics.''.
    (b) Clerical Amendment.--The table of sections for chapter 77 of 
such Code is amended by inserting after the item relating to section 
7526 the following new item:

``Sec. 7526A. Return preparation programs for low-income taxpayers.''.

    DIVISION C--IDENTITY PROTECTION PERSONAL IDENTIFICATION NUMBERS

SEC. 13001. IDENTITY PROTECTION PERSONAL IDENTIFICATION NUMBERS.

    Not later than 5 years after the date of the enactment of this Act, 
the Secretary of the Treasury or the Secretary's delegate (hereafter 
referred to in this section as the ``Secretary'') shall establish a 
program to issue, upon the request of any individual, a number which 
may be used in connection with such individual's social security number 
(or other identifying information with respect to such individual as 
determined by the Secretary) to assist the Secretary in verifying such 
individual's identity.

  DIVISION D--PROVISION OF INFORMATION REGARDING LOW-INCOME TAXPAYER 
                                CLINICS

SEC. 14001. PROVISION OF INFORMATION REGARDING LOW-INCOME TAXPAYER 
              CLINICS.

    (a) In General.--Section 7526(c) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new paragraph:
            ``(6) Provision of information regarding qualified low-
        income taxpayer clinics.--Notwithstanding any other provision 
        of law, officers and employees of the Department of the 
        Treasury may--
                    ``(A) advise taxpayers of the availability of, and 
                eligibility requirements for receiving, advice and 
                assistance from qualified low-income taxpayer clinics 
                receiving funding under this section, and
                    ``(B) provide information regarding the location 
                of, and contact information for, such clinics.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect on the date of the enactment of this Act.

  DIVISION E--SINGLE POINT OF CONTACT FOR TAX-RELATED IDENTITY THEFT 
                                VICTIMS

SEC. 15001. SINGLE POINT OF CONTACT FOR TAX-RELATED IDENTITY THEFT 
              VICTIMS.

    (a) In General.--The Secretary of the Treasury (or the Secretary's 
delegate) shall establish and implement procedures to ensure that any 
taxpayer whose return has been delayed or otherwise adversely affected 
due to tax-related identity theft has a single point of contact at the 
Internal Revenue Service throughout the processing of the taxpayer's 
case. The single point of contact shall track the taxpayer's case to 
completion and coordinate with other Internal Revenue Service employees 
to resolve case issues as quickly as possible.
    (b) Single Point of Contact.--
            (1) In general.--For purposes of subsection (a), the single 
        point of contact shall consist of a team or subset of specially 
        trained employees who--
                    (A) have the ability to work across functions to 
                resolve the issues involved in the taxpayer's case, and
                    (B) shall be accountable for handling the case 
                until its resolution.
            (2) Team or subset.--The employees included within the team 
        or subset described in paragraph (1) may change as required to 
        meet the needs of the Internal Revenue Service, provided that 
        procedures have been established to--
                    (A) ensure continuity of records and case history, 
                and
                    (B) notify the taxpayer when appropriate.

 DIVISION F--NOTICE FROM IRS REGARDING CLOSURE OF TAXPAYER ASSISTANCE 
                                 CENTER

SEC. 16001. NOTICE FROM IRS REGARDING CLOSURE OF TAXPAYER ASSISTANCE 
              CENTERS.

    Not later than 90 days before the date that a proposed closure of a 
Taxpayer Assistance Center would take effect, the Secretary of the 
Treasury (or the Secretary's delegate) shall--
            (1) make publicly available (including by non-electronic 
        means) a notice which--
                    (A) identifies the Taxpayer Assistance Center 
                proposed for closure and the date of such proposed 
                closure, and
                    (B) identifies the relevant alternative sources of 
                taxpayer assistance which may be utilized by taxpayers 
                affected by such proposed closure, and
            (2) submit to Congress a written report that includes--
                    (A) the information included in the notice 
                described in paragraph (1),
                    (B) the reasons for such proposed closure, and
                    (C) such other information as the Secretary may 
                determine appropriate.

 DIVISION G--MANDATORY ELECTRONIC FILING FOR ANNUAL RETURNS OF EXEMPT 
                             ORGANIZATIONS

SEC. 17001. MANDATORY ELECTRONIC FILING FOR ANNUAL RETURNS OF EXEMPT 
              ORGANIZATIONS.

    (a) In General.--Section 6033 of the Internal Revenue Code of 1986 
is amended by redesignating subsection (n) as subsection (o) and by 
inserting after subsection (m) the following new subsection:
    ``(n) Mandatory Electronic Filing.--Any organization required to 
file a return under this section shall file such return in electronic 
form.''.
    (b) Inspection of Electronically Filed Annual Returns.--Section 
6104(b) of such Code is amended by adding at the end the following: 
``Any annual return required to be filed electronically under section 
6033(n) shall be made available by the Secretary to the public in 
machine readable format.''.
    (c) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to returns filed 
        for taxable years beginning after the date of the enactment of 
        this Act.
            (2) Transitional relief.--
                    (A) Small organizations.--
                            (i) In general.--In the case of any small 
                        organizations, or any other organizations for 
                        which the Secretary of the Treasury or the 
                        Secretary's delegate (hereafter referred to in 
                        this paragraph as the ``Secretary'') determines 
                        the application of the amendments made by 
                        subsection (a) would cause undue burden without 
                        a delay, the Secretary may delay the 
                        application of such amendments, but not later 
                        than taxable years beginning 2 years after the 
                        date of the enactment of this Act.
                            (ii) Small organization.--For purposes of 
                        clause (i), the term ``small organization'' 
                        means any organization--
                                    (I) the gross receipts of which for 
                                the taxable year are less than 
                                $200,000, and
                                    (II) the aggregate gross assets of 
                                which at the end of the taxable year 
                                are less than $500,000.
                    (B) Organizations filing form 990-T.--In the case 
                of any organization described in section 511(a)(2) of 
                the Internal Revenue Code of 1986 which is subject to 
                the tax imposed by section 511(a)(1) of such Code on 
                its unrelated business taxable income, or any 
                organization required to file a return under section 
                6033 of such Code and include information under 
                subsection (e) thereof, the Secretary may delay the 
                application of the amendments made by this section, but 
                not later than taxable years beginning 2 years after 
                the date of the enactment of this Act.

                    DIVISION H--21ST CENTURY IRS ACT

SEC. 18001. SHORT TITLE; ETC.

    (a) Short Title.--This division may be cited as the ``21st Century 
IRS Act''.
    (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.
    (c) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 18001. Short title; etc.
             TITLE I--CYBERSECURITY AND IDENTITY PROTECTION

Sec. 18101. Public-private partnership to address identity theft refund 
                            fraud.
Sec. 18102. Recommendations of Electronic Tax Administration Advisory 
                            Committee regarding identity theft refund 
                            fraud.
Sec. 18103. Information sharing and analysis center.
Sec. 18104. Compliance by contractors with confidentiality safeguards.
Sec. 18105. Report on electronic payments.
            TITLE II--DEVELOPMENT OF INFORMATION TECHNOLOGY

Sec. 18201. Management of Internal Revenue Service information 
                            technology.
Sec. 18202. Development of online accounts and portals.
Sec. 18203. Internet platform for Form 1099 filings.
  TITLE III--MODERNIZATION OF CONSENT-BASED INCOME VERIFICATION SYSTEM

Sec. 18301. Disclosure of taxpayer information for third-party income 
                            verification.
Sec. 18302. Limit redisclosures and uses of consent-based disclosures 
                            of tax return information.
              TITLE IV--EXPANDED USE OF ELECTRONIC SYSTEMS

Sec. 18401. Electronic filing of returns.
Sec. 18402. Uniform standards for the use of electronic signatures for 
                            disclosure authorizations to, and other 
                            authorizations of, practitioners.
Sec. 18403. Payment of taxes by debit and credit cards.

             TITLE I--CYBERSECURITY AND IDENTITY PROTECTION

SEC. 18101. PUBLIC-PRIVATE PARTNERSHIP TO ADDRESS IDENTITY THEFT REFUND 
              FRAUD.

    The Secretary of the Treasury (or the Secretary's delegate) shall 
work collaboratively with the public and private sectors to protect 
taxpayers from identity theft refund fraud.

SEC. 18102. RECOMMENDATIONS OF ELECTRONIC TAX ADMINISTRATION ADVISORY 
              COMMITTEE REGARDING IDENTITY THEFT REFUND FRAUD.

    The Secretary of the Treasury shall ensure that the advisory group 
convened by the Secretary pursuant to section 2001(b)(2) of the 
Internal Revenue Service Restructuring and Reform Act of 1998 (commonly 
known as the Electronic Tax Administration Advisory Committee) studies 
(including by providing organized public forums) and makes 
recommendations to the Secretary regarding methods to prevent identity 
theft and refund fraud.

SEC. 18103. INFORMATION SHARING AND ANALYSIS CENTER.

    (a) In General.--The Secretary of the Treasury (or the Secretary's 
delegate) may participate in an information sharing and analysis center 
to centralize, standardize, and enhance data compilation and analysis 
to facilitate sharing actionable data and information with respect to 
identity theft tax refund fraud.
    (b) Development of Performance Metrics.--The Secretary of the 
Treasury (or the Secretary's delegate) shall develop metrics for 
measuring the success of such center in detecting and preventing 
identity theft tax refund fraud.
    (c) Disclosure.--
            (1) In general.--Section 6103(k) is amended by adding at 
        the end the following new paragraph:
            ``(13) Disclosure of return information for purposes of 
        cybersecurity and the prevention of identity theft tax refund 
        fraud.--
                    ``(A) In general.--Under such procedures and 
                subject to such conditions as the Secretary may 
                prescribe, the Secretary may disclose specified return 
                information to specified ISAC participants to the 
                extent that the Secretary determines such disclosure is 
                in furtherance of effective Federal tax administration 
                relating to the detection or prevention of identity 
                theft tax refund fraud, validation of taxpayer 
                identity, authentication of taxpayer returns, or 
                detection or prevention of cybersecurity threats.
                    ``(B) Specified isac participants.--For purposes of 
                this paragraph--
                            ``(i) In general.--The term `specified ISAC 
                        participant' means--
                                    ``(I) any person designated by the 
                                Secretary as having primary 
                                responsibility for a function performed 
                                with respect to the information sharing 
                                and analysis center described in 
                                section 18103(a) of the 21st Century 
                                IRS Act, and
                                    ``(II) any person subject to the 
                                requirements of section 7216 and which 
                                is a participant in such information 
                                sharing and analysis center.
                            ``(ii) Information sharing agreement.--Such 
                        term shall not include any person unless such 
                        person has entered into a written agreement 
                        with the Secretary setting forth the terms and 
                        conditions for the disclosure of information to 
                        such person under this paragraph, including 
                        requirements regarding the protection and 
                        safeguarding of such information by such 
                        person.
                    ``(C) Specified return information.--For purposes 
                of this paragraph, the term `specified return 
                information' means--
                            ``(i) in the case of a return which is in 
                        connection with a case of potential identity 
                        theft refund fraud--
                                    ``(I) in the case of such return 
                                filed electronically, the internet 
                                protocol address, device 
                                identification, email domain name, 
                                speed of completion, method of 
                                authentication, refund method, and such 
                                other return information related to the 
                                electronic filing characteristics of 
                                such return as the Secretary may 
                                identify for purposes of this 
                                subclause, and
                                    ``(II) in the case of such return 
                                prepared by a tax return preparer, 
                                identifying information with respect to 
                                such tax return preparer, including the 
                                preparer taxpayer identification number 
                                and electronic filer identification 
                                number of such preparer,
                            ``(ii) in the case of a return which is in 
                        connection with a case of a identity theft 
                        refund fraud which has been confirmed by the 
                        Secretary (pursuant to such procedures as the 
                        Secretary may provide), the information 
                        referred to in subclauses (I) and (II) of 
                        clause (i), the name and taxpayer 
                        identification number of the taxpayer as it 
                        appears on the return, and any bank account and 
                        routing information provided for making a 
                        refund in connection with such return, and
                            ``(iii) in the case of any cybersecurity 
                        threat to the Internal Revenue Service, 
                        information similar to the information 
                        described in subclauses (I) and (II) of clause 
                        (i) with respect to such threat.
                    ``(D) Restriction on use of disclosed 
                information.--
                            ``(i) Designated third parties.--Any return 
                        information received by a person described in 
                        subparagraph (B)(i)(I) shall be used only for 
                        the purposes of and to the extent necessary 
                        in--
                                    ``(I) performing the function such 
                                person is designated to perform under 
                                such subparagraph,
                                    ``(II) facilitating disclosures 
                                authorized under subparagraph (A) to 
                                persons described in subparagraph 
                                (B)(i)(II), and
                                    ``(III) facilitating disclosures 
                                authorized under subsection (d) to 
                                participants in such information 
                                sharing and analysis center.
                            ``(ii) Return preparers.--Any return 
                        information received by a person described in 
                        subparagraph (B)(i)(II) shall be treated for 
                        purposes of section 7216 as information 
                        furnished to such person for, or in connection 
                        with, the preparation of a return of the tax 
                        imposed under chapter 1.
                    ``(E) Data protection and safeguards.--Return 
                information disclosed under this paragraph shall be 
                subject to such protections and safeguards as the 
                Secretary may require in regulations or other guidance 
                or in the written agreement referred to in subparagraph 
                (B)(ii). Such written agreement shall include a 
                requirement that any unauthorized access to information 
                disclosed under this paragraph, and any breach of any 
                system in which such information is held, be reported 
                to the Treasury Inspector General for Tax 
                Administration.''.
            (2) Application of civil and criminal penalties.--
                    (A) Section 6103(a)(3) is amended by striking 
                ``subsection (k)(10)'' and inserting ``paragraph (10) 
                or (13) of subsection (k)''.
                    (B) Section 7213(a)(2) is amended by inserting ``or 
                (13)'' after ``(k)(10)''.

SEC. 18104. COMPLIANCE BY CONTRACTORS WITH CONFIDENTIALITY SAFEGUARDS.

    (a) In General.--Section 6103(p) is amended by adding at the end 
the following new paragraph:
            ``(9) Disclosure to contractors and other agents.--
        Notwithstanding any other provision of this section, no return 
        or return information shall be disclosed to any contractor or 
        other agent of a Federal, State, or local agency unless such 
        agency, to the satisfaction of the Secretary--
                    ``(A) has requirements in effect which require each 
                such contractor or other agent which would have access 
                to returns or return information to provide safeguards 
                (within the meaning of paragraph (4)) to protect the 
                confidentiality of such returns or return information,
                    ``(B) agrees to conduct an on-site review every 3 
                years (or a mid-point review in the case of contracts 
                or agreements of less than 3 years in duration) of each 
                contractor or other agent to determine compliance with 
                such requirements,
                    ``(C) submits the findings of the most recent 
                review conducted under subparagraph (B) to the 
                Secretary as part of the report required by paragraph 
                (4)(E), and
                    ``(D) certifies to the Secretary for the most 
                recent annual period that such contractor or other 
                agent is in compliance with all such requirements.
        The certification required by subparagraph (D) shall include 
        the name and address of each contractor and other agent, a 
        description of the contract or agreement with such contractor 
        or other agent, and the duration of such contract or agreement. 
        The requirements of this paragraph shall not apply to 
        disclosures pursuant to subsection (n) for purposes of Federal 
        tax administration.''.
    (b) Conforming Amendment.--Section 6103(p)(8)(B) is amended by 
inserting ``or paragraph (9)'' after ``subparagraph (A)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to disclosures made after December 31, 2022.

SEC. 18105. REPORT ON ELECTRONIC PAYMENTS.

    Not later than 2 years after the date of the enactment of this Act, 
the Secretary (or the Secretary's delegate), in coordination with the 
Bureau of Fiscal Service and the Internal Revenue Service, and in 
consultation with private sector financial institutions, shall submit a 
written report to Congress describing how the government can utilize 
new payment platforms to increase the number of tax refunds paid by 
electronic funds transfer. Such report shall weigh the interests of 
reducing identity theft tax refund fraud, reducing the Federal 
Government's costs in delivering tax refunds, the costs and any 
associated fees charged to taxpayers (including monthly and point-of-
service fees) to access their tax refunds, the impact on individuals 
who do not have access to financial accounts or institutions, and 
ensuring payments are made to accounts at a financial institution that 
complies with section 21 of the Federal Deposit Insurance Act, chapter 
2 of title I of Public Law 91-508, and subchapter II of chapter 53 of 
title 31, United States Code (commonly referred to collectively as the 
``Bank Secrecy Act'') and the USA PATRIOT Act. Such report shall 
include any legislative recommendations necessary to accomplish these 
goals.

            TITLE II--DEVELOPMENT OF INFORMATION TECHNOLOGY

SEC. 18201. MANAGEMENT OF INTERNAL REVENUE SERVICE INFORMATION 
              TECHNOLOGY.

    (a) Duties and Responsibilities of Internal Revenue Service Chief 
Information Officer.--Section 7803 is amended by adding at the end the 
following new subsection:
    ``(f) Internal Revenue Service Chief Information Officer.--
            ``(1) In general.--There shall be in the Internal Revenue 
        Service an Internal Revenue Service Chief Information Officer 
        (hereafter referred to in this subsection as the `IRS CIO') who 
        shall be appointed by the Administrator of the Internal Revenue 
        Service.
            ``(2) Centralized responsibility for internal revenue 
        service information technology.--The Administrator of the 
        Internal Revenue Service (and the Secretary) shall act through 
        the IRS CIO with respect to all development, implementation, 
        and maintenance of information technology for the Internal 
        Revenue Service. Any reference in this subsection to the IRS 
        CIO which directs the IRS CIO to take any action, or to assume 
        any responsibility, shall be treated as a reference to the 
        Administrator of the Internal Revenue Service acting through 
        the IRS CIO.
            ``(3) General duties and responsibilities.--The IRS CIO 
        shall--
                    ``(A) be responsible for the development, 
                implementation, and maintenance of information 
                technology for the Internal Revenue Service,
                    ``(B) ensure that the information technology of the 
                Internal Revenue Service is secure and integrated,
                    ``(C) maintain operational control of all 
                information technology for the Internal Revenue 
                Service,
                    ``(D) be the principal advocate for the information 
                technology needs of the Internal Revenue Service, and
                    ``(E) consult with the Chief Procurement Officer of 
                the Internal Revenue Service to ensure that the 
                information technology acquired for the Internal 
                Revenue Service is consistent with--
                            ``(i) the goals and requirements specified 
                        in subparagraphs (A) through (D), and
                            ``(ii) the strategic plan developed under 
                        paragraph (4).
            ``(4) Strategic plan.--
                    ``(A) In general.--The IRS CIO shall develop and 
                implement a multiyear strategic plan for the 
                information technology needs of the Internal Revenue 
                Service. Such plan shall--
                            ``(i) include performance measurements of 
                        such technology and of the implementation of 
                        such plan,
                            ``(ii) include a plan for an integrated 
                        enterprise architecture of the information 
                        technology of the Internal Revenue Service,
                            ``(iii) include and take into account the 
                        resources needed to accomplish such plan,
                            ``(iv) take into account planned major 
                        acquisitions of information technology by the 
                        Internal Revenue Service, including Customer 
                        Account Data Engine 2 and the Enterprise Case 
                        Management System, and
                            ``(v) align with the needs and strategic 
                        plan of the Internal Revenue Service.
                    ``(B) Plan updates.--The IRS CIO shall, not less 
                frequently than annually, review and update the 
                strategic plan under subparagraph (A) (including the 
                plan for an integrated enterprise architecture 
                described in subparagraph (A)(ii)) to take into account 
                the development of new information technology and the 
                needs of the Internal Revenue Service.
            ``(5) Scope of authority.--
                    ``(A) Information technology.--For purposes of this 
                subsection, the term `information technology' has the 
                meaning given such term by section 11101 of title 40, 
                United States Code.
                    ``(B) Internal revenue service.--Any reference in 
                this subsection to the Internal Revenue Service 
                includes a reference to all components of the Internal 
                Revenue Service, including--
                            ``(i) the Office of the Taxpayer Advocate,
                            ``(ii) the Criminal Investigation Division 
                        of the Internal Revenue Service, and
                            ``(iii) except as otherwise provided by the 
                        Secretary with respect to information 
                        technology related to matters described in 
                        subsection (b)(3)(B), the Office of the Chief 
                        Counsel.''.
    (b) Independent Verification and Validation of the Customer Account 
Data Engine 2 and Enterprise Case Management System.--
            (1) In general.--The Administrator of the Internal Revenue 
        Service shall enter into a contract with an independent 
        reviewer to verify and validate the implementation plans 
        (including the performance milestones and cost estimates 
        included in such plans) developed for the Customer Account Data 
        Engine 2 and the Enterprise Case Management System.
            (2) Deadline for completion.--Such contract shall require 
        that such verification and validation be completed not later 
        than the date which is 1 year after the date of the enactment 
        of this Act.
            (3) Application to phases of cade 2.--
                    (A) In general.--Paragraphs (1) and (2) shall not 
                apply to phase 1 of the Customer Account Data Engine 2 
                and shall apply separately to each other phase.
                    (B) Deadline for completing plans.--Not later than 
                1 year after the date of the enactment of this Act, the 
                Administrator of the Internal Revenue Service shall 
                complete the development of plans for all phases of the 
                Customer Account Data Engine 2.
                    (C) Deadline for completion of verification and 
                validation of plans.--In the case of any phase after 
                phase 2 of the Customer Account Data Engine 2, 
                paragraph (2) shall be applied by substituting ``the 
                date on which the plan for such phase was completed'' 
                for ``the date of the enactment of this Act''.
    (c) Coordination of IRS CIO and Chief Procurement Officer of the 
Internal Revenue Service.--
            (1) In general.--The Chief Procurement Officer of the 
        Internal Revenue Service shall--
                    (A) identify all significant IRS information 
                technology acquisitions and provide written 
                notification to the Internal Revenue Service Chief 
                Information Officer (hereafter referred to in this 
                subsection as the ``IRS CIO'') of each such acquisition 
                in advance of such acquisition, and
                    (B) regularly consult with the IRS CIO regarding 
                acquisitions of information technology for the Internal 
                Revenue Service, including meeting with the IRS CIO 
                regarding such acquisitions upon request.
            (2) Significant irs information technology acquisitions.--
        For purposes of this subsection, the term ``significant IRS 
        information technology acquisitions'' means--
                    (A) any acquisition of information technology for 
                the Internal Revenue Service in excess of $1,000,000, 
                and
                    (B) such other acquisitions of information 
                technology for the Internal Revenue Service (or 
                categories of such acquisitions) as the IRS CIO, in 
                consultation with the Chief Procurement Officer of the 
                Internal Revenue Service, may identify.
            (3) Scope.--Terms used in this subsection which are also 
        used in section 7803(f) of the Internal Revenue Code of 1986 
        (as amended by subsection (a)) shall have the same meaning as 
        when used in such section.

SEC. 18202. DEVELOPMENT OF ONLINE ACCOUNTS AND PORTALS.

    (a) In General.--The Secretary of the Treasury or the Secretary's 
delegate (hereafter referred to in this section as the ``Secretary'') 
shall--
            (1) develop secure individualized online accounts to 
        provide services to taxpayers and their designated return 
        preparers, including obtaining taxpayer information, making 
        payment of taxes, sharing documentation, and (to the extent 
        feasible) addressing and correcting issues, and
            (2) develop a process for the acceptance of tax forms, and 
        supporting documentation, in digital or other electronic 
        format.
    (b) Electronic Services Treated as Supplemental; Application of 
Security Standards.--The Secretary shall ensure that the processes 
described in subsection (a)--
            (1) are a supplement to, and not a replacement for, other 
        services provided by the Internal Revenue Service to taxpayers, 
        including face-to-face taxpayer assistance and services 
        provided by phone, and
            (2) comply with applicable security standards and 
        guidelines.
    (c) Process for Developing Online Accounts.--
            (1) Development of plan.--Not later than 1 year after the 
        date of the enactment of this Act, the Secretary shall submit 
        to Congress a written report describing the Secretary's plan 
        for developing the secure individualized online accounts 
        described in subsection (a)(1). Such plan shall address the 
        feasibility of taxpayers addressing and correcting issues 
        through such accounts and whether access to such accounts 
        should be restricted and in what manner.
            (2) Deadline.--The Secretary shall make every reasonable 
        effort to make the secure individualized online accounts 
        described in subsection (a)(1) available to taxpayers by 
        December 31, 2023.

SEC. 18203. INTERNET PLATFORM FOR FORM 1099 FILINGS.

    (a) In General.--Not later than January 1, 2023, the Secretary of 
the Treasury or the Secretary's delegate (hereafter referred to in this 
section as the ``Secretary'') shall make available an Internet website 
or other electronic media, with a user interface and functionality 
similar to the Business Services Online Suite of Services provided by 
the Social Security Administration, that will provide access to 
resources and guidance provided by the Internal Revenue Service and 
will allow persons to--
            (1) prepare and file Forms 1099,
            (2) prepare Forms 1099 for distribution to recipients other 
        than the Internal Revenue Service, and
            (3) maintain a record of completed and submitted Forms 
        1099.
    (b) Electronic Services Treated as Supplemental; Application of 
Security Standards.--The Secretary shall ensure that the services 
described in subsection (a)--
            (1) are a supplement to, and not a replacement for, other 
        services provided by the Internal Revenue Service to taxpayers, 
        and
            (2) comply with applicable security standards and 
        guidelines.

  TITLE III--MODERNIZATION OF CONSENT-BASED INCOME VERIFICATION SYSTEM

SEC. 18301. DISCLOSURE OF TAXPAYER INFORMATION FOR THIRD-PARTY INCOME 
              VERIFICATION.

    (a) In General.--Not later than 1 year after the close of the 2-
year period described in subsection (d)(1), the Secretary of the 
Treasury or the Secretary's delegate (hereafter referred to in this 
section as the ``Secretary'') shall implement a program to ensure that 
any qualified disclosure--
            (1) is fully automated and accomplished through the 
        Internet, and
            (2) is accomplished in as close to real-time as is 
        practicable.
    (b) Qualified Disclosure.--For purposes of this section, the term 
``qualified disclosure'' means a disclosure under section 6103(c) of 
the Internal Revenue Code of 1986 of returns or return information by 
the Secretary to a person seeking to verify the income or 
creditworthiness of a taxpayer who is a borrower in the process of a 
loan application.
    (c) Application of Security Standards.--The Secretary shall ensure 
that the program described in subsection (a) complies with applicable 
security standards and guidelines.
    (d) User Fee.--
            (1) In general.--During the 2-year period beginning on the 
        first day of the 6th calendar month beginning after the date of 
        the enactment of this Act, the Secretary shall assess and 
        collect a fee for qualified disclosures (in addition to any 
        other fee assessed and collected for such disclosures) at such 
        rates as the Secretary determines are sufficient to cover the 
        costs related to implementing the program described in 
        subsection (a), including the costs of any necessary 
        infrastructure or technology.
            (2) Deposit of collections.--Amounts received from fees 
        assessed and collected under paragraph (1) shall be deposited 
        in, and credited to, an account solely for the purpose of 
        carrying out the activities described in subsection (a). Such 
        amounts shall be available to carry out such activities without 
        need of further appropriation and without fiscal year 
        limitation.

SEC. 18302. LIMIT REDISCLOSURES AND USES OF CONSENT-BASED DISCLOSURES 
              OF TAX RETURN INFORMATION.

    (a) In General.--Section 6103(c) is amended by adding at the end 
the following: ``Persons designated by the taxpayer under this 
subsection 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.''.
    (b) Application of Penalties.--Section 6103(a)(3) is amended by 
inserting ``subsection (c),'' after ``return information under''.
    (c) Effective Date.--The amendments made by this section shall 
apply to disclosures made after the date of the enactment of this Act.

              TITLE IV--EXPANDED USE OF ELECTRONIC SYSTEMS

SEC. 18401. ELECTRONIC FILING OF RETURNS.

    (a) In General.--Section 6011(e)(2)(A) is amended by striking 
``250'' and inserting ``the applicable number of''.
    (b) Applicable Number.--Section 6011(e) is amended by adding at the 
end the following new paragraph:
            ``(6) Applicable number.--For purposes of paragraph (2)(A), 
        the applicable number shall be determined in accordance with 
        the following table:
                    ``(A) in the case of calendar years before 2020, 
                250,
                    ``(B) in the case of calendar year 2020, 100, and
                    ``(C) in the case of calendar years after 2020, 
                10.''.
    (c) Returns Filed by a Tax Return Preparer.--Section 6011(e)(3) is 
amended by adding at the end the following new subparagraph:
                    ``(D) Exception for certain preparers located in 
                areas without internet access.--The Secretary may waive 
                the requirement of subparagraph (A) if the Secretary 
                determines, on the basis of an application by the tax 
                return preparer, that the preparer cannot meet such 
                requirement by reason of being located in a geographic 
                area which does not have access to internet service 
                (other than dial-up or satellite service).''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 18402. UNIFORM STANDARDS FOR THE USE OF ELECTRONIC SIGNATURES FOR 
              DISCLOSURE AUTHORIZATIONS TO, AND OTHER AUTHORIZATIONS 
              OF, PRACTITIONERS.

    Section 6061(b)(3) is amended to read as follows:
            ``(3) Published guidance.--
                    ``(A) In general.--The Secretary shall publish 
                guidance as appropriate to define and implement any 
                waiver of the signature requirements or any method 
                adopted under paragraph (1).
                    ``(B) Electronic signatures for disclosure 
                authorizations to, and other authorizations of, 
                practitioners.--Not later than 6 months after the date 
                of the enactment of this subparagraph, the Secretary 
                shall publish guidance to establish uniform standards 
                and procedures for the acceptance of taxpayers' 
                signatures appearing in electronic form with respect to 
                any request for disclosure of a taxpayer's return or 
                return information under section 6103(c) to a 
                practitioner or any power of attorney granted by a 
                taxpayer to a practitioner.
                    ``(C) Practitioner.--For purposes of subparagraph 
                (B), the term `practitioner' means any individual in 
                good standing who is regulated under section 330 of 
                title 31, United States Code.''.

SEC. 18403. PAYMENT OF TAXES BY DEBIT AND CREDIT CARDS.

    Section 6311(d)(2) is amended by adding at the end the following: 
``The preceding sentence shall not apply to the extent that the 
Secretary ensures that any such fee or other consideration is fully 
recouped by the Secretary in the form of fees paid to the Secretary by 
persons paying taxes imposed under subtitle A with credit, debit, or 
charge cards pursuant to such contract. Notwithstanding the preceding 
sentence, the Secretary shall seek to minimize the amount of any fee or 
other consideration that the Secretary pays under any such contract.''.

 DIVISION I--RULES FOR SEIZURE AND SALE OF PERISHABLE GOODS RESTRICTED 
                        TO ONLY PERISHABLE GOODS

SEC. 19001. RULES FOR SEIZURE AND SALE OF PERISHABLE GOODS RESTRICTED 
              TO ONLY PERISHABLE GOODS.

    (a) In General.--Section 6336 of the Internal Revenue Code of 1986 
is amended by striking ``or become greatly reduced in price or value by 
keeping, or that such property cannot be kept without great expense''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property seized after the date of the enactment of this Act.

            Passed the House of Representatives April 18, 2018.

            Attest:

                                                                 Clerk.
115th CONGRESS

  2d Session

                               H. R. 5444

_______________________________________________________________________

                                 AN ACT

To amend the Internal Revenue Code of 1986 to modernize and improve the 
Internal Revenue Service, to amend the Internal Revenue Code of 1986 to 
   make permanent the Volunteer Income Tax Assistance matching grant 
   program, to require the Secretary of the Treasury to establish a 
program for the issuance of identity protection personal identification 
 numbers, to amend the Internal Revenue Code of 1986 to allow officers 
and employees of the Department of the Treasury to provide to taxpayers 
  information regarding low-income taxpayer clinics, to provide for a 
    single point of contact at the Internal Revenue Service for the 
  taxpayers who are victims of tax-related identity theft, to require 
notice from the Secretary of the Treasury in the case of any closure of 
  a Taxpayer Assistance Center, to amend the Internal Revenue Code of 
   1986 to require electronic filing of the annual returns of exempt 
organizations and provide for making such returns available for public 
   inspection, to amend the Internal Revenue Code of 1986 to improve 
   cybersecurity and taxpayer identity protection, and modernize the 
 information technology of the Internal Revenue Service, to amend the 
Internal Revenue Code of 1986 to restrict the immediate sale of seized 
property by the Secretary of the Treasury to perishable goods, and for 
                            other purposes.