[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 88 Engrossed Amendment House (EAH)]

<DOC>
                In the House of Representatives, U. S.,

                                                     December 20, 2018.
    Resolved, That the House agree to the amendment of the Senate to 
the bill (H.R. 88) entitled ``An Act to modify the boundary of the 
Shiloh National Military Park located in Tennessee and Mississippi, to 
establish Parker's Crossroads Battlefield as an affiliated area of the 
National Park System, and for other purposes.'', with the following

                  HOUSE AMENDMENT TO SENATE AMENDMENT:

            In lieu of the matter proposed to be inserted by the 
      amendment of the Senate, insert the following:

   DIVISION A--RETIREMENT, SAVINGS, AND OTHER TAX RELIEF ACT OF 2018

SECTION 1. SHORT TITLE, ETC.

    (a) Short Title.--This division may be cited as the Retirement, 
Savings, and Other Tax Relief Act of 2018.
    (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this division 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 for this division is 
as follows:

Sec. 1. Short title, etc.

                      TITLE I--DISASTER TAX RELIEF

Sec. 101. Definitions.
Sec. 102. Special disaster-related rules for use of retirement funds.
Sec. 103. Employee retention credit for employers affected by qualified 
                            disasters.
Sec. 104. Other disaster-related tax relief provisions.
Sec. 105. Treatment of certain possessions.
Sec. 106. Automatic extension of filing deadline.

                    TITLE II--RETIREMENT AND SAVINGS

        Subtitle A--Expanding and Preserving Retirement Savings

Sec. 201. Multiple employer plans; pooled employer plans.
Sec. 202. Rules relating to election of safe harbor 401(k) status.
Sec. 203. Certain taxable non-tuition fellowship and stipend payments 
                            treated as compensation for IRA purposes.
Sec. 204. Repeal of maximum age for traditional IRA contributions.
Sec. 205. Qualified employer plans prohibited from making loans through 
                            credit cards and other similar 
                            arrangements.
Sec. 206. Portability of lifetime income investments.
Sec. 207. Treatment of custodial accounts on termination of section 
                            403(b) plans.
Sec. 208. Clarification of retirement income account rules relating to 
                            church-controlled organizations.
Sec. 209. Increase in 10 percent cap for automatic enrollment safe 
                            harbor after 1st plan year.
Sec. 210. Increase in credit limitation for small employer pension plan 
                            startup costs.
Sec. 211. Small employer automatic enrollment credit.
Sec. 212. Exemption from required minimum distribution rules for 
                            individuals with certain account balances.
Sec. 213. Elective deferrals by members of the Ready Reserve of a 
                            reserve component of the Armed Forces.

                Subtitle B--Administrative Improvements

Sec. 221. Plan adopted by filing due date for year may be treated as in 
                            effect as of close of year.
Sec. 222. Modification of nondiscrimination rules to protect older, 
                            longer service participants.
Sec. 223. Fiduciary safe harbor for selection of lifetime income 
                            provider.
Sec. 224. Disclosure regarding lifetime income.
Sec. 225. Modification of PBGC premiums for CSEC plans.

                  Subtitle C--Other Savings Provisions

Sec. 231. Expansion of section 529 plans.
Sec. 232. Penalty-free withdrawals from retirement plans for 
                            individuals in case of birth of child or 
                            adoption.

       TITLE III--REPEAL OR DELAY OF CERTAIN HEALTH-RELATED TAXES

Sec. 301. Extension of moratorium on medical device excise tax.
Sec. 302. Delay in implementation of excise tax on high cost employer-
                            sponsored health coverage.
Sec. 303. Extension of suspension of annual fee on health insurance 
                            providers.
Sec. 304. Repeal of excise tax on indoor tanning services.

                 TITLE IV--CERTAIN EXPIRING PROVISIONS

Sec. 401. Railroad track maintenance credit made permanent.
Sec. 402. Biodiesel and renewable diesel provisions extended and phased 
                            out.

                       TITLE V--OTHER PROVISIONS

Sec. 501. Technical amendments relating to Public Law 115-97.
Sec. 502. Clarification of treatment of veterans as specified group for 
                            purposes of the low-income housing tax 
                            credit.
Sec. 503. Clarification of general public use requirement for qualified 
                            residential rental projects.
Sec. 504. Floor plan financing applicable to certain trailers and 
                            campers.
Sec. 505. Repeal of increase in unrelated business taxable income by 
                            disallowed fringe.
Sec. 506. Certain purchases of employee-owned stock disregarded for 
                            purposes of foundation tax on excess 
                            business holdings.
Sec. 507. Allowing 501(c)(3) organization to make statements relating 
                            to political campaign in ordinary course of 
                            carrying out its tax exempt purpose.
Sec. 508. Charitable organizations permitted to make collegiate housing 
                            and infrastructure grants.
Sec. 509. Restriction on regulation of contingency fees with respect to 
                            tax returns, etc.

                      TITLE I--DISASTER TAX RELIEF

SEC. 101. DEFINITIONS.

    For purposes of this title--
            (1) General definitions.--
                    (A) Qualified disaster area.--The term ``qualified 
                disaster area'' means the Hurricane Florence disaster 
                area; the Hurricane Michael disaster area; the Typhoon 
                Mangkhut disaster area; the Typhoon Yutu disaster area; 
                the Mendocino wildfire disaster area; the Camp and 
                Woolsey wildfire disaster area; the Kilauea volcanic 
                eruption and earthquakes disaster area; the Hawaii 
                severe storms, flooding, landslides, and mudslides 
                disaster area; the Wisconsin severe storms, tornadoes, 
                straight-line winds, flooding, and landslides disaster 
                area; the Texas severe storms and flooding disaster 
                area; the North Carolina tornado and severe storms 
                disaster area; the Indiana severe storms and flooding 
                disaster area; the Alabama severe storms and tornadoes 
                disaster area; and the Tropical Storm Gita disaster 
                area.
                    (B) Qualified disaster zone.--The term ``qualified 
                disaster zone'' means that portion of any qualified 
                disaster area which is determined by the President to 
                warrant individual or individual and public assistance 
                from the Federal Government under the Robert T. 
                Stafford Disaster Relief and Emergency Assistance Act 
                by reason of the qualified disaster with respect to 
                such disaster area.
                    (C) Qualified disaster.--The term ``qualified 
                disaster'' means, with respect to any qualified 
                disaster area, the disaster by reason of which a major 
                disaster was declared with respect to such area.
            (2) Hurricane florence.--
                    (A) Hurricane florence disaster area.--The term 
                ``Hurricane Florence disaster area'' means an area with 
                respect to which a major disaster has been declared by 
                the President on or before December 17, 2018, under 
                section 401 of the Robert T. Stafford Disaster Relief 
                and Emergency Assistance Act by reason of Hurricane 
                Florence.
                    (B) Incident beginning date.--The incident 
                beginning date of Hurricane Florence is September 7, 
                2018.
                    (C) Incident period.--The incident period of 
                Hurricane Florence is the period beginning on the 
                incident beginning date of Hurricane Florence and 
                ending on October 8, 2018.
            (3) Hurricane michael.--
                    (A) Hurricane michael disaster area.--The term 
                ``Hurricane Michael disaster area'' means an area with 
                respect to which a major disaster has been declared by 
                the President on or before December 17, 2018, under 
                section 401 of the Robert T. Stafford Disaster Relief 
                and Emergency Assistance Act by reason of Hurricane 
                Michael.
                    (B) Incident beginning date.--The incident 
                beginning date of Hurricane Michael is October 7, 2018.
                    (C) Incident period.--The incident period of 
                Hurricane Michael is the period beginning on the 
                incident beginning date of Hurricane Michael and ending 
                on October 23, 2018.
            (4) Typhoon mangkhut.--
                    (A) Typhoon mangkhut disaster area.--The term 
                ``Typhoon Mangkhut disaster area'' means an area with 
                respect to which a major disaster has been declared by 
                the President on or before December 17, 2018, under 
                section 401 of the Robert T. Stafford Disaster Relief 
                and Emergency Assistance Act by reason of Typhoon 
                Mangkhut.
                    (B) Incident beginning date.--The incident 
                beginning date of Typhoon Mangkhut is September 10, 
                2018.
                    (C) Incident period.--The incident period of 
                Typhoon Mangkhut is the period beginning on the 
                incident beginning date of Typhoon Mangkhut and ending 
                on September 11, 2018.
            (5) Typhoon yutu.--
                    (A) Typhoon yutu disaster area.--The term ``Typhoon 
                Yutu disaster area'' means an area with respect to 
                which a major disaster has been declared by the 
                President on or before December 17, 2018, under section 
                401 of the Robert T. Stafford Disaster Relief and 
                Emergency Assistance Act by reason of Typhoon Yutu.
                    (B) Incident beginning date.--The incident 
                beginning date of Typhoon Yutu is October 24, 2018.
                    (C) Incident period.--The incident period of 
                Typhoon Yutu is the period beginning on the incident 
                beginning date of Typhoon Yutu and ending on October 
                26, 2018.
            (6) Mendocino wildfire.--
                    (A) Mendocino wildfire disaster area.--The term 
                ``Mendocino wildfire disaster area'' means an area with 
                respect to which, during the period beginning on August 
                4, 2018, and ending on December 17, 2018, a major 
                disaster has been declared by the President under 
                section 401 of the Robert T. Stafford Disaster Relief 
                and Emergency Assistance Act by reason of the wildfire 
                in California commonly known as the Mendocino wildfire 
                of 2018 (including the Carr wildfire of 2018).
                    (B) Incident beginning date.--The incident 
                beginning date of the wildfires referred to in 
                subparagraph (A) is July 23, 2018.
                    (C) Incident period.--The incident period of the 
                wildfires referred to in subparagraph (A) is the period 
                beginning on the incident beginning date of such 
                wildfires and ending on September 19, 2018.
            (7) Camp and woolsey wildfires.--
                    (A) Camp and woolsey wildfire disaster area.--The 
                term ``Camp and Woolsey wildfire disaster area'' means 
                an area with respect to which, during the period 
                beginning on November 12, 2018, and ending on December 
                17, 2018, a major disaster has been declared by the 
                President under section 401 of the Robert T. Stafford 
                Disaster Relief and Emergency Assistance Act by reason 
                of the wildfires in California commonly known as the 
                Camp and Woolsey wildfires of 2018 (including the Hill 
                wildfire of 2018).
                    (B) Incident beginning date.--The incident 
                beginning date of the wildfires referred to in 
                subparagraph (A) is November 8, 2018.
                    (C) Incident period.--The incident period of the 
                wildfires referred to in subparagraph (A) is the period 
                beginning on the incident beginning date of such 
                wildfires and ending on November 25, 2018.
            (8) Kilauea volcanic eruption and earthquakes.--
                    (A) Kilauea volcanic eruption and earthquakes 
                disaster area.--The term ``Kilauea volcanic eruption 
                and earthquakes disaster area'' means an area with 
                respect to which, during the period beginning on May 
                11, 2018, and ending on December 17, 2018, a major 
                disaster has been declared by the President under 
                section 401 of the Robert T. Stafford Disaster Relief 
                and Emergency Assistance Act by reason of the Kilauea 
                volcanic eruption and earthquakes occurring in Hawaii 
                during the period beginning on May 3, 2018, and ending 
                on August 17, 2018.
                    (B) Incident beginning date.--The incident 
                beginning date of the volcanic eruption and earthquakes 
                referred to in subparagraph (A) is May 3, 2018.
                    (C) Incident period.--The incident period of the 
                volcanic eruption and earthquakes referred to in 
                subparagraph (A) is the period beginning on the 
                incident beginning date with respect to such eruption 
                and earthquakes and ending on August 17, 2018.
            (9) Hawaii severe storms, flooding, landslides, and 
        mudslides.--
                    (A) Hawaii severe storms, flooding, landslides, and 
                mudslides disaster area.--The term ``Hawaii severe 
                storms, flooding, landslides, and mudslides disaster 
                area'' means an area with respect to which, during the 
                period beginning on May 8, 2018, and ending on December 
                17, 2018, a major disaster has been declared by the 
                President under section 401 of the Robert T. Stafford 
                Disaster Relief and Emergency Assistance Act by reason 
                of the severe storms, flooding, landslides, and 
                mudslides occurring in Hawaii during the period 
                beginning on April 13, 2018, and ending on April 16, 
                2018.
                    (B) Incident beginning date.--The incident 
                beginning date of the severe storms, flooding, 
                landslides, and mudslides referred to in subparagraph 
                (A) is April 13, 2018.
                    (C) Incident period.--The incident period of the 
                severe storms, flooding, landslides, and mudslides 
                referred to in subparagraph (A) is the period beginning 
                on the incident beginning date with respect to such 
                severe storms, flooding, landslides, and mudslides and 
                ending on April 16, 2018.
            (10) Wisconsin severe storms, tornadoes, straight-line 
        winds, flooding, and landslides.--
                    (A) Wisconsin severe storms, tornadoes, straight-
                line winds, flooding, and landslides disaster area.--
                The term ``Wisconsin severe storms, tornadoes, 
                straight-line winds, flooding, and landslides disaster 
                area'' means an area with respect to which, during the 
                period beginning on October 18, 2018, and ending on 
                December 17, 2018, a major disaster has been declared 
                by the President under section 401 of the Robert T. 
                Stafford Disaster Relief and Emergency Assistance Act 
                by reason of the severe storms, tornadoes, straight-
                line winds, flooding, and landslides occurring in 
                Wisconsin during the period beginning on August 17, 
                2018, and ending on September 14, 2018.
                    (B) Incident beginning date.--The incident 
                beginning date of the severe storms, tornadoes, 
                straight-line winds, flooding, and landslides referred 
                to in subparagraph (A) is August 17, 2018.
                    (C) Incident period.--The incident period of the 
                severe storms, tornadoes, straight-line winds, 
                flooding, and landslides referred to in subparagraph 
                (A) is the period beginning on the incident beginning 
                date with respect to such severe storms, tornadoes, 
                straight-line winds, flooding, and landslides and 
                ending on September 14, 2018.
            (11) Texas severe storms and flooding.--
                    (A) Texas severe storms and flooding disaster 
                area.--The term ``Texas severe storms and flooding 
                disaster area'' means an area with respect to which, 
                during the period beginning on July 6, 2018, and ending 
                on December 17, 2018, a major disaster has been 
                declared by the President under section 401 of the 
                Robert T. Stafford Disaster Relief and Emergency 
                Assistance Act by reason of the severe storms and 
                flooding occurring in Texas during the period beginning 
                on June 19, 2018, and ending on July 13, 2018.
                    (B) Incident beginning date.--The incident 
                beginning date of the severe storms and flooding 
                referred to in subparagraph (A) is June 19, 2018.
                    (C) Incident period.--The incident period of the 
                severe storms and flooding referred to in subparagraph 
                (A) is the period beginning on the incident beginning 
                date with respect to such severe storms and flooding 
                and ending on July 13, 2018.
            (12) North carolina tornado and severe storms.--
                    (A) North carolina tornado and severe storms 
                disaster area.--The term ``North Carolina tornado and 
                severe storms disaster area'' means an area with 
                respect to which, during the period beginning on May 8, 
                2018, and ending on December 17, 2018, a major disaster 
                has been declared by the President under section 401 of 
                the Robert T. Stafford Disaster Relief and Emergency 
                Assistance Act by reason of the tornado and severe 
                storms occurring in North Carolina on April 15, 2018.
                    (B) Incident beginning date; incident period.--The 
                incident beginning date, and the incident period, of 
                the tornado and severe storms referred to in 
                subparagraph (A) is April 15, 2018.
            (13) Indiana severe storms and flooding.--
                    (A) Indiana severe storms and flooding disaster 
                area.--The term ``Indiana severe storms and flooding 
                disaster area'' means an area with respect to which, 
                during the period beginning on May 4, 2018, and ending 
                on December 17, 2018, a major disaster has been 
                declared by the President under section 401 of the 
                Robert T. Stafford Disaster Relief and Emergency 
                Assistance Act by reason of the severe storms and 
                flooding occurring in Indiana during the period 
                beginning on February 14, 2018, and ending on March 4, 
                2018.
                    (B) Incident beginning date.--The incident 
                beginning date of the severe storms and flooding 
                referred to in subparagraph (A) is February 14, 2018.
                    (C) Incident period.--The incident period of the 
                severe storms and flooding referred to in subparagraph 
                (A) is the period beginning on the incident beginning 
                date with respect to such severe storms and flooding 
                and ending on March 4, 2018.
            (14) Alabama severe storms and tornadoes.--
                    (A) Alabama severe storms and tornadoes disaster 
                area.--The term ``Alabama severe storms and tornadoes 
                disaster area'' means an area with respect to which, 
                during the period beginning on April 26, 2018, and 
                ending on December 17, 2018, a major disaster has been 
                declared by the President under section 401 of the 
                Robert T. Stafford Disaster Relief and Emergency 
                Assistance Act by reason of the severe storms and 
                tornadoes occurring in Alabama during the period 
                beginning on March 19, 2018, and ending on March 20, 
                2018.
                    (B) Incident beginning date.--The incident 
                beginning date of the severe storms and tornadoes 
                referred to in subparagraph (A) is March 19, 2018.
                    (C) Incident period.--The incident period of the 
                severe storms and tornadoes referred to in subparagraph 
                (A) is the period beginning on the incident beginning 
                date with respect to such severe storms and tornadoes 
                and ending on March 20, 2018.
            (15) Tropical storm gita.--
                    (A) Tropical storm gita disaster area.--The term 
                ``Tropical Storm Gita disaster area'' means an area 
                with respect to which a major disaster has been 
                declared by the President on or before December 17, 
                2018, under section 401 of the Robert T. Stafford 
                Disaster Relief and Emergency Assistance Act by reason 
                of Tropical Storm Gita.
                    (B) Incident beginning date.--The incident 
                beginning date of Tropical Storm Gita is February 7, 
                2018.
                    (C) Incident period.--The incident period of 
                Tropical Storm Gita is the period beginning on the 
                incident beginning date of Tropical Storm Gita and 
                ending on February 12, 2018.

SEC. 102. SPECIAL DISASTER-RELATED RULES FOR USE OF RETIREMENT FUNDS.

    (a) Tax-Favored Withdrawals From Retirement Plans.--
            (1) In general.--Section 72(t) of the Internal Revenue Code 
        of 1986 shall not apply to any qualified disaster distribution.
            (2) Aggregate dollar limitation.--
                    (A) In general.--For purposes of this subsection, 
                the aggregate amount of distributions received by an 
                individual which may be treated as qualified disaster 
                distributions for any taxable year shall not exceed the 
                excess (if any) of--
                            (i) $100,000, over
                            (ii) the aggregate amounts treated as 
                        qualified disaster distributions received by 
                        such individual for all prior taxable years.
                    (B) Treatment of plan distributions.--If a 
                distribution to an individual would (without regard to 
                subparagraph (A)) be a qualified disaster distribution, 
                a plan shall not be treated as violating any 
                requirement of the Internal Revenue Code of 1986 merely 
                because the plan treats such distribution as a 
                qualified disaster distribution, unless the aggregate 
                amount of such distributions from all plans maintained 
                by the employer (and any member of any controlled group 
                which includes the employer) to such individual exceeds 
                $100,000.
                    (C) Controlled group.--For purposes of subparagraph 
                (B), the term ``controlled group'' means any group 
                treated as a single employer under subsection (b), (c), 
                (m), or (o) of section 414 of the Internal Revenue Code 
                of 1986.
                    (D) Special rule for individuals affected by more 
                than one disaster.--The limitation of subparagraph (A) 
                shall be applied separately with respect to 
                distributions made with respect to each qualified 
                disaster which is described in a separate paragraph of 
                section 101.
            (3) Amount distributed may be repaid.--
                    (A) In general.--Any individual who receives a 
                qualified disaster distribution may, at any time during 
                the 3-year period beginning on the day after the date 
                on which such distribution was received, make 1 or more 
                contributions in an aggregate amount not to exceed the 
                amount of such distribution to an eligible retirement 
                plan of which such individual is a beneficiary and to 
                which a rollover contribution of such distribution 
                could be made under section 402(c), 403(a)(4), 
                403(b)(8), 408(d)(3), or 457(e)(16), of the Internal 
                Revenue Code of 1986, as the case may be.
                    (B) Treatment of repayments of distributions from 
                eligible retirement plans other than iras.--For 
                purposes of the Internal Revenue Code of 1986, if a 
                contribution is made pursuant to subparagraph (A) with 
                respect to a qualified disaster distribution from an 
                eligible retirement plan other than an individual 
                retirement plan, then the taxpayer shall, to the extent 
                of the amount of the contribution, be treated as having 
                received the qualified disaster distribution in an 
                eligible rollover distribution (as defined in section 
                402(c)(4) of such Code) and as having transferred the 
                amount to the eligible retirement plan in a direct 
                trustee to trustee transfer within 60 days of the 
                distribution.
                    (C) Treatment of repayments of distributions from 
                iras.--For purposes of the Internal Revenue Code of 
                1986, if a contribution is made pursuant to 
                subparagraph (A) with respect to a qualified disaster 
                distribution from an individual retirement plan (as 
                defined by section 7701(a)(37) of such Code), then, to 
                the extent of the amount of the contribution, the 
                qualified disaster distribution shall be treated as a 
                distribution described in section 408(d)(3) of such 
                Code and as having been transferred to the eligible 
                retirement plan in a direct trustee to trustee transfer 
                within 60 days of the distribution.
            (4) Definitions.--For purposes of this subsection--
                    (A) Qualified disaster distribution.--Except as 
                provided in paragraph (2), the term ``qualified 
                disaster distribution'' means any distribution from an 
                eligible retirement plan made on or after the incident 
                beginning date of a qualified disaster and before 
                January 1, 2020, to an individual whose principal place 
                of abode at any time during the incident period of such 
                qualified disaster is located in the qualified disaster 
                area with respect to such qualified disaster and who 
                has sustained an economic loss by reason of such 
                qualified disaster.
                    (B) Eligible retirement plan.--The term ``eligible 
                retirement plan'' shall have the meaning given such 
                term by section 402(c)(8)(B) of the Internal Revenue 
                Code of 1986.
            (5) Income inclusion spread over 3-year period.--
                    (A) In general.--In the case of any qualified 
                disaster distribution, unless the taxpayer elects not 
                to have this paragraph apply for any taxable year, any 
                amount required to be included in gross income for such 
                taxable year shall be so included ratably over the 3-
                taxable-year period beginning with such taxable year.
                    (B) Special rule.--For purposes of subparagraph 
                (A), rules similar to the rules of subparagraph (E) of 
                section 408A(d)(3) of the Internal Revenue Code of 1986 
                shall apply.
            (6) Special rules.--
                    (A) Exemption of distributions from trustee to 
                trustee transfer and withholding rules.--For purposes 
                of sections 401(a)(31), 402(f), and 3405 of the 
                Internal Revenue Code of 1986, qualified disaster 
                distributions shall not be treated as eligible rollover 
                distributions.
                    (B) Qualified disaster distributions treated as 
                meeting plan distribution requirements.--For purposes 
                the Internal Revenue Code of 1986, a qualified disaster 
                distribution shall be treated as meeting the 
                requirements of sections 401(k)(2)(B)(I), 
                403(b)(7)(A)(ii), 403(b)(11), and 457(d)(1)(A) of such 
                Code.
    (b) Recontributions of Withdrawals for Home Purchases.--
            (1) Recontributions.--
                    (A) In general.--Any individual who received a 
                qualified distribution may, during the applicable 
                period, make 1 or more contributions in an aggregate 
                amount not to exceed the amount of such qualified 
                distribution to an eligible retirement plan (as defined 
                in section 402(c)(8)(B) of the Internal Revenue Code of 
                1986) of which such individual is a beneficiary and to 
                which a rollover contribution of such distribution 
                could be made under section 402(c), 403(a)(4), 
                403(b)(8), or 408(d)(3), of such Code, as the case may 
                be.
                    (B) Treatment of repayments.--Rules similar to the 
                rules of subparagraphs (B) and (C) of subsection (a)(3) 
                shall apply for purposes of this subsection.
            (2) Qualified distribution.--For purposes of this 
        subsection, the term ``qualified distribution'' means any 
        distribution--
                    (A) described in section 401(k)(2)(B)(i)(IV), 
                403(b)(7)(A)(ii) (but only to the extent such 
                distribution relates to financial hardship), 
                403(b)(11)(B), or 72(t)(2)(F), of the Internal Revenue 
                Code of 1986,
                    (B) which was to be used to purchase or construct a 
                principal residence in a qualified disaster area, but 
                which was not so used on account of the qualified 
                disaster with respect to such area, and
                    (C) which was received on or after January 1, 2018, 
                and before the date which is 30 days after the last day 
                of the incident period of such qualified disaster.
            (3) Applicable period.--For purposes of this subsection, 
        the term ``applicable period'' means, in the case of a 
        principal residence in a qualified disaster area with respect 
        to any qualified disaster, the period beginning on the incident 
        beginning date of such qualified disaster and ending on 
        February 28, 2019.
    (c) Loans From Qualified Plans.--
            (1) Increase in limit on loans not treated as 
        distributions.--In the case of any loan from a qualified 
        employer plan (as defined under section 72(p)(4) of the 
        Internal Revenue Code of 1986) to a qualified individual made 
        during the period beginning on the date of the enactment of 
        this Act and ending on December 31, 2019--
                    (A) clause (i) of section 72(p)(2)(A) of such Code 
                shall be applied by substituting ``$100,000'' for 
                ``$50,000'', and
                    (B) clause (ii) of such section shall be applied by 
                substituting ``the present value of the nonforfeitable 
                accrued benefit of the employee under the plan'' for 
                ``one-half of the present value of the nonforfeitable 
                accrued benefit of the employee under the plan''.
            (2) Delay of repayment.--In the case of a qualified 
        individual (with respect to any qualified disaster) with an 
        outstanding loan on or after the incident beginning date (of 
        such qualified disaster) from a qualified employer plan (as 
        defined in section 72(p)(4) of the Internal Revenue Code of 
        1986)--
                    (A) if the due date pursuant to subparagraph (B) or 
                (C) of section 72(p)(2) of such Code for any repayment 
                with respect to such loan occurs during the period 
                beginning on the incident beginning date of such 
                qualified disaster and ending on December 31, 2019, 
                such due date shall be delayed for 1 year,
                    (B) any subsequent repayments with respect to any 
                such loan shall be appropriately adjusted to reflect 
                the delay in the due date under paragraph (1) and any 
                interest accruing during such delay, and
                    (C) in determining the 5-year period and the term 
                of a loan under subparagraph (B) or (C) of section 
                72(p)(2) of such Code, the period described in 
                subparagraph (A) of this paragraph shall be 
                disregarded.
            (3) Qualified individual.--For purposes of this subsection, 
        the term ``qualified individual'' means any individual--
                    (A) whose principal place of abode at any time 
                during the incident period of any qualified disaster is 
                located in the qualified disaster area with respect to 
                such qualified disaster, and
                    (B) who has sustained an economic loss by reason of 
                such qualified disaster.
    (d) Provisions Relating to Plan Amendments.--
            (1) In general.--If this subsection applies to any 
        amendment to any plan or annuity contract, such plan or 
        contract shall be treated as being operated in accordance with 
        the terms of the plan during the period described in paragraph 
        (2)(B)(i).
            (2) Amendments to which subsection applies.--
                    (A) In general.--This subsection shall apply to any 
                amendment to any plan or annuity contract which is 
                made--
                            (i) pursuant to any provision of this 
                        section, or pursuant to any regulation issued 
                        by the Secretary or the Secretary of Labor 
                        under any provision of this section, and
                            (ii) on or before the last day of the first 
                        plan year beginning on or after January 1, 
                        2020, or such later date as the Secretary may 
                        prescribe.
                In the case of a governmental plan (as defined in 
                section 414(d) of the Internal Revenue Code of 1986), 
                clause (ii) shall be applied by substituting the date 
                which is 2 years after the date otherwise applied under 
                clause (ii).
                    (B) Conditions.--This subsection shall not apply to 
                any amendment unless--
                            (i) during the period--
                                    (I) beginning on the date that this 
                                section or the regulation described in 
                                subparagraph (A)(i) takes effect (or in 
                                the case of a plan or contract 
                                amendment not required by this section 
                                or such regulation, the effective date 
                                specified by the plan), and
                                    (II) ending on the date described 
                                in subparagraph (A)(ii) (or, if 
                                earlier, the date the plan or contract 
                                amendment is adopted),
                the plan or contract is operated as if such plan or 
                contract amendment were in effect, and
                            (ii) such plan or contract amendment 
                        applies retroactively for such period.

SEC. 103. EMPLOYEE RETENTION CREDIT FOR EMPLOYERS AFFECTED BY QUALIFIED 
              DISASTERS.

    (a) In General.--For purposes of section 38 of the Internal Revenue 
Code of 1986, in the case of an eligible employer, the 2018 qualified 
disaster employee retention credit shall be treated as a credit listed 
in subsection (b) of such section. For purposes of this subsection, the 
2018 qualified disaster employee retention credit for any taxable year 
is an amount equal to 40 percent of the qualified wages with respect to 
each eligible employee of such employer for such taxable year. For 
purposes of the preceding sentence, the amount of qualified wages which 
may be taken into account with respect to any individual shall not 
exceed $6,000.
    (b) Definitions.--For purposes of this section--
            (1) Eligible employer.--The term ``eligible employer'' 
        means any employer--
                    (A) which conducted an active trade or business in 
                a qualified disaster zone at any time during the 
                incident period of the qualified disaster with respect 
                to such qualified disaster zone, and
                    (B) with respect to whom the trade or business 
                described in subparagraph (A) is inoperable at any time 
                after the incident beginning date of such qualified 
                disaster, and before January 1, 2019, as a result of 
                damage sustained by reason of such qualified disaster.
            (2) Eligible employee.--The term ``eligible employee'' 
        means with respect to an eligible employer an employee whose 
        principal place of employment at any time during the incident 
        period of the qualified disaster referred to in paragraph (1) 
        with such eligible employer was in the qualified disaster zone 
        referred to in such paragraph.
            (3) Qualified wages.--The term ``qualified wages'' means 
        wages (as defined in section 51(c)(1) of the Internal Revenue 
        Code of 1986, but without regard to section 3306(b)(2)(B) of 
        such Code) paid or incurred by an eligible employer with 
        respect to an eligible employee at any time after the incident 
        beginning date of the qualified disaster referred to in 
        paragraph (1), and before January 1, 2019, which occurs during 
        the period--
                    (A) beginning on the date on which the trade or 
                business described in paragraph (1) first became 
                inoperable at the principal place of employment of the 
                employee immediately before the qualified disaster 
                referred to in such paragraph, and
                    (B) ending on the date on which such trade or 
                business has resumed significant operations at such 
                principal place of employment.
        Such term shall include wages paid without regard to whether 
        the employee performs no services, performs services at a 
        different place of employment than such principal place of 
        employment, or performs services at such principal place of 
        employment before significant operations have resumed.
    (c) Certain Rules to Apply.--For purposes of this subsection, rules 
similar to the rules of sections 51(i)(1), 52, and 280C(a), of the 
Internal Revenue Code of 1986, shall apply.
    (d) Employee Not Taken Into Account More Than Once.--An employee 
shall not be treated as an eligible employee for purposes of this 
subsection for any period with respect to any employer if such employer 
is allowed a credit under section 51 of the Internal Revenue Code of 
1986 with respect to such employee for such period.

SEC. 104. OTHER DISASTER-RELATED TAX RELIEF PROVISIONS.

    (a) Temporary Suspension of Limitations on Charitable 
Contributions.--
            (1) In general.--Except as otherwise provided in paragraph 
        (2), subsection (b) of section 170 of the Internal Revenue Code 
        of 1986 shall not apply to qualified contributions and such 
        contributions shall not be taken into account for purposes of 
        applying subsections (b) and (d) of such section to other 
        contributions.
            (2) Treatment of excess contributions.--For purposes of 
        section 170 of the Internal Revenue Code of 1986--
                    (A) Individuals.--In the case of an individual--
                            (i) Limitation.--Any qualified contribution 
                        shall be allowed only to the extent that the 
                        aggregate of such contributions does not exceed 
                        the excess of the taxpayer's contribution base 
                        (as defined in subparagraph (H) of section 
                        170(b)(1) of such Code) over the amount of all 
                        other charitable contributions allowed under 
                        section 170(b)(1) of such Code.
                            (ii) Carryover.--If the aggregate amount of 
                        qualified contributions made in the 
                        contribution year (within the meaning of 
                        section 170(d)(1) of such Code) exceeds the 
                        limitation of clause (i), such excess shall be 
                        added to the excess described in the portion of 
                        subparagraph (A) of such section which precedes 
                        clause (i) thereof for purposes of applying 
                        such section.
                    (B) Corporations.--In the case of a corporation--
                            (i) Limitation.--Any qualified contribution 
                        shall be allowed only to the extent that the 
                        aggregate of such contributions does not exceed 
                        the excess of the taxpayer's taxable income (as 
                        determined under paragraph (2) of section 
                        170(b) of such Code) over the amount of all 
                        other charitable contributions allowed under 
                        such paragraph.
                            (ii) Carryover.--Rules similar to the rules 
                        of subparagraph (A)(ii) shall apply for 
                        purposes of this subparagraph.
            (3) Qualified contributions.--
                    (A) In general.--For purposes of this subsection, 
                the term ``qualified contribution'' means any 
                charitable contribution (as defined in section 170(c) 
                of the Internal Revenue Code of 1986) if--
                            (i) such contribution--
                                    (I) is paid during the period 
                                beginning on February 7, 2018, and 
                                ending on December 31, 2018, in cash to 
                                an organization described in section 
                                170(b)(1)(A) of such Code, and
                                    (II) is made for relief efforts in 
                                one or more qualified disaster areas,
                            (ii) the taxpayer obtains from such 
                        organization contemporaneous written 
                        acknowledgment (within the meaning of section 
                        170(f)(8) of such Code) that such contribution 
                        was used (or is to be used) for relief efforts 
                        described in clause (i)(II), and
                            (iii) the taxpayer has elected the 
                        application of this subsection with respect to 
                        such contribution.
                    (B) Exception.--Such term shall not include a 
                contribution by a donor if the contribution is--
                            (i) to an organization described in section 
                        509(a)(3) of the Internal Revenue Code of 1986, 
                        or
                            (ii) for the establishment of a new, or 
                        maintenance of an existing, donor advised fund 
                        (as defined in section 4966(d)(2) of such 
                        Code).
                    (C) Application of election to partnerships and s 
                corporations.--In the case of a partnership or S 
                corporation, the election under subparagraph (A)(iii) 
                shall be made separately by each partner or 
                shareholder.
    (b) Special Rules for Qualified Disaster-related Personal Casualty 
Losses.--
            (1) In general.--If an individual has a net disaster loss 
        for any taxable year--
                    (A) the amount determined under section 
                165(h)(2)(A)(ii) of the Internal Revenue Code of 1986 
                shall be equal to the sum of--
                            (i) such net disaster loss, and
                            (ii) so much of the excess referred to in 
                        the matter preceding clause (i) of section 
                        165(h)(2)(A) of such Code (reduced by the 
                        amount in clause (i) of this subparagraph) as 
                        exceeds 10 percent of the adjusted gross income 
                        of the individual,
                    (B) section 165(h)(1) of such Code shall be applied 
                by substituting ``$500'' for ``$500 ($100 for taxable 
                years beginning after December 31, 2009)'',
                    (C) the standard deduction determined under section 
                63(c) of such Code shall be increased by the net 
                disaster loss, and
                    (D) section 56(b)(1)(E) of such Code shall not 
                apply to so much of the standard deduction as is 
                attributable to the increase under subparagraph (C) of 
                this paragraph.
            (2) Net disaster loss.--For purposes of this subsection, 
        the term ``net disaster loss'' means the excess of qualified 
        disaster-related personal casualty losses over personal 
        casualty gains (as defined in section 165(h)(3)(A) of the 
        Internal Revenue Code of 1986).
            (3) Qualified disaster-related personal casualty losses.--
        For purposes of this subsection, the term ``qualified disaster-
        related personal casualty losses'' means losses described in 
        section 165(c)(3) of the Internal Revenue Code of 1986 which 
        arise in a qualified disaster area on or after the incident 
        beginning date of the qualified disaster to which such area 
        relates, and which are attributable to such qualified disaster.
    (c) Special Rule for Determining Earned Income.--
            (1) In general.--In the case of a qualified individual, if 
        the earned income of the taxpayer for the applicable taxable 
        year is less than the earned income of the taxpayer for the 
        preceding taxable year, the credits allowed under sections 
        24(d) and 32 of the Internal Revenue Code of 1986 may, at the 
        election of the taxpayer, be determined by substituting--
                    (A) such earned income for the preceding taxable 
                year, for
                    (B) such earned income for the applicable taxable 
                year.
            (2) Qualified individual.--For purposes of this subsection, 
        the term ``qualified individual'' means any individual whose 
        principal place of abode at any time during the incident period 
        of any qualified disaster was located--
                    (A) in the qualified disaster zone with respect to 
                such qualified disaster, or
                    (B) in the qualified disaster area with respect to 
                such qualified disaster (but outside the qualified 
                disaster zone with respect to such qualified disaster) 
                and such individual was displaced from such principal 
                place of abode by reason of such qualified disaster.
            (3) Applicable taxable year.--The term ``applicable taxable 
        year'' means, with respect to any qualified individual, any 
        taxable year which includes any day during the incident period 
        of the qualified disaster to which the qualified disaster area 
        referred to in paragraph (2) relates.
            (4) Earned income.--For purposes of this subsection, the 
        term ``earned income'' has the meaning given such term under 
        section 32(c) of the Internal Revenue Code of 1986.
            (5) Special rules.--
                    (A) Application to joint returns.--For purposes of 
                paragraph (1), in the case of a joint return for an 
                applicable taxable year--
                            (i) such paragraph shall apply if either 
                        spouse is a qualified individual, and
                            (ii) the earned income of the taxpayer for 
                        the preceding taxable year shall be the sum of 
                        the earned income of each spouse for such 
                        preceding taxable year.
                    (B) Uniform application of election.--Any election 
                made under paragraph (1) shall apply with respect to 
                both sections 24(d) and 32 of the Internal Revenue Code 
                of 1986.
                    (C) Errors treated as mathematical error.--For 
                purposes of section 6213 of the Internal Revenue Code 
                of 1986, an incorrect use on a return of earned income 
                pursuant to paragraph (1) shall be treated as a 
                mathematical or clerical error.
                    (D) No effect on determination of gross income, 
                etc.--Except as otherwise provided in this subsection, 
                the Internal Revenue Code of 1986 shall be applied 
                without regard to any substitution under paragraph (1).

SEC. 105. TREATMENT OF CERTAIN POSSESSIONS.

    (a) Payments to Guam and the Commonwealth of the Northern Mariana 
Islands.--The Secretary of the Treasury shall pay to Guam and the 
Commonwealth of the Northern Mariana Islands amounts equal to the loss 
to that possession by reason of the application of the provisions of 
this title. Such amounts shall be determined by the Secretary of the 
Treasury based on information provided by the government of the 
respective possession.
    (b) Payments to American Samoa.--
            (1) In general.--The Secretary of the Treasury shall pay to 
        American Samoa amounts estimated by the Secretary of the 
        Treasury as being equal to the aggregate benefits that would 
        have been provided to residents of American Samoa by reason of 
        the provisions of this title if a mirror code tax system had 
        been in effect in American Samoa. The preceding sentence shall 
        not apply unless American Samoa has a plan, which has been 
        approved by the Secretary of the Treasury, under which American 
        Samoa will promptly distribute such payments to its residents.
            (2) Mirror code tax system.--For purposes of this 
        subsection, the term ``mirror code tax system'' means, with 
        respect to any possession of the United States, the income tax 
        system of such possession if the income tax liability of the 
        residents of such possession under such system is determined by 
        reference to the income tax laws of the United States as if 
        such possession were the United States.
    (c) Treatment of Payments.--For purposes of section 1324 of title 
31, United States Code, the payments under this section shall be 
treated in the same manner as a refund due from a credit provision 
referred to in subsection (b)(2) of such section.

SEC. 106. AUTOMATIC EXTENSION OF FILING DEADLINE.

    (a) In General.--Section 7508A is amended by adding at the end the 
following new subsection:
    ``(d) Mandatory 60-day Extension.--In the case of--
            ``(1) any individual whose principal place of abode is in a 
        disaster area (as defined in section 165(i)(5)(B)), and
            ``(2) any taxpayer if the taxpayer's principal place of 
        business (other than the business of performing services of an 
        employee) is located in a disaster area (as so defined),
the period beginning on the earliest incident date specified in the 
declaration to which such area relates and ending on the date which is 
60 days after the latest incident date so specified shall be 
disregarded in the same manner as a period specified under subsection 
(a).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to Federally declared disasters declared after December 31, 2017.

                    TITLE II--RETIREMENT AND SAVINGS

        Subtitle A--Expanding and Preserving Retirement Savings

SEC. 201. MULTIPLE EMPLOYER PLANS; POOLED EMPLOYER PLANS.

    (a) Qualification Requirements.--
            (1) In general.--Section 413 is amended by adding at the 
        end the following new subsection:
    ``(e) Application of Qualification Requirements for Certain 
Multiple Employer Plans With Pooled Plan Providers.--
            ``(1) In general.--Except as provided in paragraph (2), if 
        a defined contribution plan to which subsection (c) applies--
                    ``(A) is maintained by employers which have a 
                common interest other than having adopted the plan, or
                    ``(B) in the case of a plan not described in 
                subparagraph (A), has a pooled plan provider,
        then the plan shall not be treated as failing to meet the 
        requirements under this title applicable to a plan described in 
        section 401(a) or to a plan that consists of individual 
        retirement accounts described in section 408 (including by 
        reason of subsection (c) thereof), whichever is applicable, 
        merely because one or more employers of employees covered by 
        the plan fail to take such actions as are required of such 
        employers for the plan to meet such requirements.
            ``(2) Limitations.--
                    ``(A) In general.--Paragraph (1) shall not apply to 
                any plan unless the terms of the plan provide that in 
                the case of any employer in the plan failing to take 
                the actions described in paragraph (1)--
                            ``(i) the assets of the plan attributable 
                        to employees of such employer (or beneficiaries 
                        of such employees) will be transferred to a 
                        plan maintained only by such employer (or its 
                        successor), to an eligible retirement plan as 
                        defined in section 402(c)(8)(B) for each 
                        individual whose account is transferred, or to 
                        any other arrangement that the Secretary 
                        determines is appropriate, unless the Secretary 
                        determines it is in the best interests of the 
                        employees of such employer (and the 
                        beneficiaries of such employees) to retain the 
                        assets in the plan, and
                            ``(ii) such employer (and not the plan with 
                        respect to which the failure occurred or any 
                        other employer in such plan) shall, except to 
                        the extent provided by the Secretary, be liable 
                        for any liabilities with respect to such plan 
                        attributable to employees of such employer (or 
                        beneficiaries of such employees).
                    ``(B) Failures by pooled plan providers.--If the 
                pooled plan provider of a plan described in paragraph 
                (1)(B) does not perform substantially all of the 
                administrative duties which are required of the 
                provider under paragraph (3)(A)(i) for any plan year, 
                the Secretary may provide that the determination as to 
                whether the plan meets the requirements under this 
                title applicable to a plan described in section 401(a) 
                or to a plan that consists of individual retirement 
                accounts described in section 408 (including by reason 
                of subsection (c) thereof), whichever is applicable, 
                shall be made in the same manner as would be made 
                without regard to paragraph (1).
            ``(3) Pooled plan provider.--
                    ``(A) In general.--For purposes of this subsection, 
                the term `pooled plan provider' means, with respect to 
                any plan, a person who--
                            ``(i) is designated by the terms of the 
                        plan as a named fiduciary (within the meaning 
                        of section 402(a)(2) of the Employee Retirement 
                        Income Security Act of 1974), as the plan 
                        administrator, and as the person responsible to 
                        perform all administrative duties (including 
                        conducting proper testing with respect to the 
                        plan and the employees of each employer in the 
                        plan) which are reasonably necessary to ensure 
                        that--
                                    ``(I) the plan meets any 
                                requirement applicable under the 
                                Employee Retirement Income Security Act 
                                of 1974 or this title to a plan 
                                described in section 401(a) or to a 
                                plan that consists of individual 
                                retirement accounts described in 
                                section 408 (including by reason of 
                                subsection (c) thereof), whichever is 
                                applicable, and
                                    ``(II) each employer in the plan 
                                takes such actions as the Secretary or 
                                such person determines are necessary 
                                for the plan to meet the requirements 
                                described in subclause (I), including 
                                providing to such person any 
                                disclosures or other information which 
                                the Secretary may require or which such 
                                person otherwise determines are 
                                necessary to administer the plan or to 
                                allow the plan to meet such 
                                requirements,
                            ``(ii) registers as a pooled plan provider 
                        with the Secretary, and provides such other 
                        information to the Secretary as the Secretary 
                        may require, before beginning operations as a 
                        pooled plan provider,
                            ``(iii) acknowledges in writing that such 
                        person is a named fiduciary (within the meaning 
                        of section 402(a)(2) of the Employee Retirement 
                        Income Security Act of 1974), and the plan 
                        administrator, with respect to the plan, and
                            ``(iv) is responsible for ensuring that all 
                        persons who handle assets of, or who are 
                        fiduciaries of, the plan are bonded in 
                        accordance with section 412 of the Employee 
                        Retirement Income Security Act of 1974.
                    ``(B) Audits, examinations and investigations.--The 
                Secretary may perform audits, examinations, and 
                investigations of pooled plan providers as may be 
                necessary to enforce and carry out the purposes of this 
                subsection.
                    ``(C) Aggregation rules.--For purposes of this 
                paragraph, in determining whether a person meets the 
                requirements of this paragraph to be a pooled plan 
                provider with respect to any plan, all persons who 
                perform services for the plan and who are treated as a 
                single employer under subsection (b), (c), (m), or (o) 
                of section 414 shall be treated as one person.
                    ``(D) Treatment of employers as plan sponsors.--
                Except with respect to the administrative duties of the 
                pooled plan provider described in subparagraph (A)(i), 
                each employer in a plan which has a pooled plan 
                provider shall be treated as the plan sponsor with 
                respect to the portion of the plan attributable to 
                employees of such employer (or beneficiaries of such 
                employees).
            ``(4) Guidance.--The Secretary shall issue such guidance as 
        the Secretary determines appropriate to carry out this 
        subsection, including guidance--
                    ``(A) to identify the administrative duties and 
                other actions required to be performed by a pooled plan 
                provider under this subsection,
                    ``(B) which describes the procedures to be taken to 
                terminate a plan which fails to meet the requirements 
                to be a plan described in paragraph (1), including the 
                proper treatment of, and actions needed to be taken by, 
                any employer in the plan and the assets and liabilities 
                of the plan attributable to employees of such employer 
                (or beneficiaries of such employees), and
                    ``(C) identifying appropriate cases to which the 
                rules of paragraph (2)(A) will apply to employers in 
                the plan failing to take the actions described in 
                paragraph (1).
        The Secretary shall take into account under subparagraph (C) 
        whether the failure of an employer or pooled plan provider to 
        provide any disclosures or other information, or to take any 
        other action, necessary to administer a plan or to allow a plan 
        to meet requirements applicable to the plan under section 
        401(a) or 408, whichever is applicable, has continued over a 
        period of time that demonstrates a lack of commitment to 
        compliance.
            ``(5) Model plan.--The Secretary shall publish model plan 
        language which meets the requirements of this subsection and of 
        paragraphs (43) and (44) of section 3 of the Employee 
        Retirement Income Security Act of 1974 and which may be adopted 
        in order for a plan to be treated as a plan described in 
        paragraph (1)(B).''.
            (2) Conforming amendment.--Section 413(c)(2) is amended by 
        striking ``section 401(a)'' and inserting ``sections 401(a) and 
        408(c)''.
            (3) Technical amendment.--Section 408(c) is amended by 
        inserting after paragraph (2) the following new paragraph:
            ``(3) There is a separate accounting for any interest of an 
        employee or member (or spouse of an employee or member) in a 
        Roth IRA.''.
    (b) No Common Interest Required for Pooled Employer Plans.--Section 
3(2) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 
1002(2)) is amended by adding at the end the following:
                    ``(C) A pooled employer plan shall be treated as--
                            ``(i) a single employee pension benefit 
                        plan or single pension plan; and
                            ``(ii) a plan to which section 210(a) 
                        applies.''.
    (c) Pooled Employer Plan and Provider Defined.--
            (1) In general.--Section 3 of the Employee Retirement 
        Income Security Act of 1974 (29 U.S.C. 1002) is amended by 
        adding at the end the following:
            ``(43) Pooled employer plan.--
                    ``(A) In general.--The term `pooled employer plan' 
                means a plan--
                            ``(i) which is an individual account plan 
                        established or maintained for the purpose of 
                        providing benefits to the employees of 2 or 
                        more employers;
                            ``(ii) which is a plan described in section 
                        401(a) of the Internal Revenue Code of 1986 
                        which includes a trust exempt from tax under 
                        section 501(a) of such Code or a plan that 
                        consists of individual retirement accounts 
                        described in section 408 of such Code 
                        (including by reason of subsection (c) 
                        thereof); and
                            ``(iii) the terms of which meet the 
                        requirements of subparagraph (B).
                Such term shall not include a plan maintained by 
                employers which have a common interest other than 
                having adopted the plan.
                    ``(B) Requirements for plan terms.--The 
                requirements of this subparagraph are met with respect 
                to any plan if the terms of the plan--
                            ``(i) designate a pooled plan provider and 
                        provide that the pooled plan provider is a 
                        named fiduciary of the plan;
                            ``(ii) designate one or more trustees 
                        meeting the requirements of section 408(a)(2) 
                        of the Internal Revenue Code of 1986 (other 
                        than an employer in the plan) to be responsible 
                        for collecting contributions to, and holding 
                        the assets of, the plan and require such 
                        trustees to implement written contribution 
                        collection procedures that are reasonable, 
                        diligent, and systematic;
                            ``(iii) provide that each employer in the 
                        plan retains fiduciary responsibility for--
                                    ``(I) the selection and monitoring 
                                in accordance with section 404(a) of 
                                the person designated as the pooled 
                                plan provider and any other person who, 
                                in addition to the pooled plan 
                                provider, is designated as a named 
                                fiduciary of the plan; and
                                    ``(II) to the extent not otherwise 
                                delegated to another fiduciary by the 
                                pooled plan provider and subject to the 
                                provisions of section 404(c), the 
                                investment and management of the 
                                portion of the plan's assets 
                                attributable to the employees of the 
                                employer (or beneficiaries of such 
                                employees);
                            ``(iv) provide that employers in the plan, 
                        and participants and beneficiaries, are not 
                        subject to unreasonable restrictions, fees, or 
                        penalties with regard to ceasing participation, 
                        receipt of distributions, or otherwise 
                        transferring assets of the plan in accordance 
                        with section 208 or paragraph (44)(C)(i)(II);
                            ``(v) require--
                                    ``(I) the pooled plan provider to 
                                provide to employers in the plan any 
                                disclosures or other information which 
                                the Secretary may require, including 
                                any disclosures or other information to 
                                facilitate the selection or any 
                                monitoring of the pooled plan provider 
                                by employers in the plan; and
                                    ``(II) each employer in the plan to 
                                take such actions as the Secretary or 
                                the pooled plan provider determines are 
                                necessary to administer the plan or for 
                                the plan to meet any requirement 
                                applicable under this Act or the 
                                Internal Revenue Code of 1986 to a plan 
                                described in section 401(a) of such 
                                Code or to a plan that consists of 
                                individual retirement accounts 
                                described in section 408 of such Code 
                                (including by reason of subsection (c) 
                                thereof), whichever is applicable, 
                                including providing any disclosures or 
                                other information which the Secretary 
                                may require or which the pooled plan 
                                provider otherwise determines are 
                                necessary to administer the plan or to 
                                allow the plan to meet such 
                                requirements; and
                            ``(vi) provide that any disclosure or other 
                        information required to be provided under 
                        clause (v) may be provided in electronic form 
                        and will be designed to ensure only reasonable 
                        costs are imposed on pooled plan providers and 
                        employers in the plan.
                    ``(C) Exceptions.--The term `pooled employer plan' 
                does not include--
                            ``(i) a multiemployer plan; or
                            ``(ii) a plan established before the date 
                        of the enactment of the Retirement, Savings, 
                        and Other Tax Relief Act of 2018 unless the 
                        plan administrator elects that the plan will be 
                        treated as a pooled employer plan and the plan 
                        meets the requirements of this title applicable 
                        to a pooled employer plan established on or 
                        after such date.
                    ``(D) Treatment of employers as plan sponsors.--
                Except with respect to the administrative duties of the 
                pooled plan provider described in paragraph (44)(A)(i), 
                each employer in a pooled employer plan shall be 
                treated as the plan sponsor with respect to the portion 
                of the plan attributable to employees of such employer 
                (or beneficiaries of such employees).
            ``(44) Pooled plan provider.--
                    ``(A) In general.--The term `pooled plan provider' 
                means a person who--
                            ``(i) is designated by the terms of a 
                        pooled employer plan as a named fiduciary, as 
                        the plan administrator, and as the person 
                        responsible for the performance of all 
                        administrative duties (including conducting 
                        proper testing with respect to the plan and the 
                        employees of each employer in the plan) which 
                        are reasonably necessary to ensure that--
                                    ``(I) the plan meets any 
                                requirement applicable under this Act 
                                or the Internal Revenue Code of 1986 to 
                                a plan described in section 401(a) of 
                                such Code or to a plan that consists of 
                                individual retirement accounts 
                                described in section 408 of such Code 
                                (including by reason of subsection (c) 
                                thereof), whichever is applicable; and
                                    ``(II) each employer in the plan 
                                takes such actions as the Secretary or 
                                pooled plan provider determines are 
                                necessary for the plan to meet the 
                                requirements described in subclause 
                                (I), including providing the 
                                disclosures and information described 
                                in paragraph (43)(B)(v)(II);
                            ``(ii) registers as a pooled plan provider 
                        with the Secretary, and provides to the 
                        Secretary such other information as the 
                        Secretary may require, before beginning 
                        operations as a pooled plan provider;
                            ``(iii) acknowledges in writing that such 
                        person is a named fiduciary, and the plan 
                        administrator, with respect to the pooled 
                        employer plan; and
                            ``(iv) is responsible for ensuring that all 
                        persons who handle assets of, or who are 
                        fiduciaries of, the pooled employer plan are 
                        bonded in accordance with section 412.
                    ``(B) Audits, examinations and investigations.--The 
                Secretary may perform audits, examinations, and 
                investigations of pooled plan providers as may be 
                necessary to enforce and carry out the purposes of this 
                paragraph and paragraph (43).
                    ``(C) Guidance.--The Secretary shall issue such 
                guidance as the Secretary determines appropriate to 
                carry out this paragraph and paragraph (43), including 
                guidance--
                            ``(i) to identify the administrative duties 
                        and other actions required to be performed by a 
                        pooled plan provider under either such 
                        paragraph; and
                            ``(ii) which requires in appropriate cases 
                        that if an employer in the plan fails to take 
                        the actions required under subparagraph 
                        (A)(i)(II)--
                                    ``(I) the assets of the plan 
                                attributable to employees of such 
                                employer (or beneficiaries of such 
                                employees) are transferred to a plan 
                                maintained only by such employer (or 
                                its successor), to an eligible 
                                retirement plan as defined in section 
                                402(c)(8)(B) of the Internal Revenue 
                                Code of 1986 for each individual whose 
                                account is transferred, or to any other 
                                arrangement that the Secretary 
                                determines is appropriate in such 
                                guidance; and
                                    ``(II) such employer (and not the 
                                plan with respect to which the failure 
                                occurred or any other employer in such 
                                plan) shall, except to the extent 
                                provided in such guidance, be liable 
                                for any liabilities with respect to 
                                such plan attributable to employees of 
                                such employer (or beneficiaries of such 
                                employees).
                The Secretary shall take into account under clause (ii) 
                whether the failure of an employer or pooled plan 
                provider to provide any disclosures or other 
                information, or to take any other action, necessary to 
                administer a plan or to allow a plan to meet 
                requirements described in subparagraph (A)(i)(II) has 
                continued over a period of time that demonstrates a 
                lack of commitment to compliance. The Secretary may 
                waive the requirements of subclause (ii)(I) in 
                appropriate circumstances if the Secretary determines 
                it is in the best interests of the employees of the 
                employer referred to in such clause (and the 
                beneficiaries of such employees) to retain the assets 
                in the plan with respect to which the employer's 
                failure occurred.
                    ``(D) Aggregation rules.--For purposes of this 
                paragraph, in determining whether a person meets the 
                requirements of this paragraph to be a pooled plan 
                provider with respect to any plan, all persons who 
                perform services for the plan and who are treated as a 
                single employer under subsection (b), (c), (m), or (o) 
                of section 414 of the Internal Revenue Code of 1986 
                shall be treated as one person.''.
            (2) Bonding requirements for pooled employer plans.--The 
        last sentence of section 412(a) of the Employee Retirement 
        Income Security Act of 1974 (29 U.S.C. 1112(a)) is amended by 
        inserting ``or in the case of a pooled employer plan (as 
        defined in section 3(43))'' after ``section 407(d)(1))''.
            (3) Conforming and technical amendments.--Section 3 of the 
        Employee Retirement Income Security Act of 1974 (29 U.S.C. 
        1002) is amended--
                    (A) in paragraph (16)(B)--
                            (i) by striking ``or'' at the end of clause 
                        (ii); and
                            (ii) by striking the period at the end and 
                        inserting ``, or (iv) in the case of a pooled 
                        employer plan, the pooled plan provider.''; and
                    (B) by striking the second paragraph (41).
    (d) Pooled Employer and Multiple Employer Plan Reporting.--
            (1) Additional information.--Section 103 of the Employee 
        Retirement Income Security Act of 1974 (29 U.S.C. 1023) is 
        amended--
                    (A) in subsection (a)(1)(B), by striking 
                ``applicable subsections (d), (e), and (f)'' and 
                inserting ``applicable subsections (d), (e), (f), and 
                (g)''; and
                    (B) by amending subsection (g) to read as follows:
    ``(g) Additional Information With Respect to Pooled Employer and 
Multiple Employer Plans.--An annual report under this section for a 
plan year shall include--
            ``(1) with respect to any plan to which section 210(a) 
        applies (including a pooled employer plan), a list of employers 
        in the plan, a good faith estimate of the percentage of total 
        contributions made by such employers during the plan year, and 
        the aggregate account balances attributable to each employer in 
        the plan (determined as the sum of the account balances of the 
        employees of such employer (and the beneficiaries of such 
        employees)); and
            ``(2) with respect to a pooled employer plan, the 
        identifying information for the person designated under the 
        terms of the plan as the pooled plan provider.''.
            (2) Simplified annual reports.--Section 104(a) of the 
        Employee Retirement Income Security Act of 1974 (29 U.S.C. 
        1024(a)) is amended by striking paragraph (2)(A) and inserting 
        the following:
            ``(2)(A) With respect to annual reports required to be 
        filed with the Secretary under this part, the Secretary may by 
        regulation prescribe simplified annual reports for any pension 
        plan that--
                    ``(i) covers fewer than 100 participants; or
                    ``(ii) is a plan described in section 210(a) that 
                covers fewer than 1,000 participants, but only if no 
                single employer in the plan has 100 or more 
                participants covered by the plan.''.
    (e) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to plan years beginning after December 31, 2019.
            (2) Rule of construction.--Nothing in the amendments made 
        by subsection (a) shall be construed as limiting the authority 
        of the Secretary of the Treasury or the Secretary's delegate 
        (determined without regard to such amendments) to provide for 
        the proper treatment of a failure to meet any requirement 
        applicable under the Internal Revenue Code of 1986 with respect 
        to one employer (and its employees) in a multiple employer 
        plan.

SEC. 202. RULES RELATING TO ELECTION OF SAFE HARBOR 401(K) STATUS.

    (a) Limitation of Annual Safe Harbor Notice to Matching 
Contribution Plans.--
            (1) In general.--Section 401(k)(12)(A) is amended by 
        striking ``if such arrangement'' and all that follows and 
        inserting ``if such arrangement--
                            ``(i) meets the contribution requirements 
                        of subparagraph (B) and the notice requirements 
                        of subparagraph (D), or
                            ``(ii) meets the contribution requirements 
                        of subparagraph (C).''.
            (2) Automatic contribution arrangements.--Section 
        401(k)(13)(B) is amended by striking ``means'' and all that 
        follows and inserting ``means a cash or deferred arrangement--
                            ``(i) which is described in subparagraph 
                        (D)(i)(I) and meets the applicable requirements 
                        of subparagraphs (C) through (E), or
                            ``(ii) which is described in subparagraph 
                        (D)(i)(II) and meets the applicable 
                        requirements of subparagraphs (C) and (D).''.
    (b) Nonelective Contributions.--Section 401(k)(12) is amended by 
redesignating subparagraph (F) as subparagraph (G), and by inserting 
after subparagraph (E) the following new subparagraph:
                    ``(F) Timing of plan amendment for employer making 
                nonelective contributions.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), a plan may be amended after the 
                        beginning of a plan year to provide that the 
                        requirements of subparagraph (C) shall apply to 
                        the arrangement for the plan year, but only if 
                        the amendment is adopted--
                                    ``(I) at any time before the 30th 
                                day before the close of the plan year, 
                                or
                                    ``(II) at any time before the last 
                                day under paragraph (8)(A) for 
                                distributing excess contributions for 
                                the plan year.
                            ``(ii) Exception where plan provided for 
                        matching contributions.--Clause (i) shall not 
                        apply to any plan year if the plan provided at 
                        any time during the plan year that the 
                        requirements of subparagraph (B) or paragraph 
                        (13)(D)(i)(I) applied to the plan year.
                            ``(iii) 4-percent contribution 
                        requirement.--Clause (i)(II) shall not apply to 
                        an arrangement unless the amount of the 
                        contributions described in subparagraph (C) 
                        which the employer is required to make under 
                        the arrangement for the plan year with respect 
                        to any employee is an amount equal to at least 
                        4 percent of the employee's compensation.''.
    (c) Automatic Contribution Arrangements.--Section 401(k)(13) is 
amended by adding at the end the following:
                    ``(F) Timing of plan amendment for employer making 
                nonelective contributions.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), a plan may be amended after the 
                        beginning of a plan year to provide that the 
                        requirements of subparagraph (D)(i)(II) shall 
                        apply to the arrangement for the plan year, but 
                        only if the amendment is adopted--
                                    ``(I) at any time before the 30th 
                                day before the close of the plan year, 
                                or
                                    ``(II) at any time before the last 
                                day under paragraph (8)(A) for 
                                distributing excess contributions for 
                                the plan year.
                            ``(ii) Exception where plan provided for 
                        matching contributions.--Clause (i) shall not 
                        apply to any plan year if the plan provided at 
                        any time during the plan year that the 
                        requirements of subparagraph (D)(i)(I) or 
                        paragraph (12)(B) applied to the plan year.
                            ``(iii) 4-percent contribution 
                        requirement.--Clause (i)(II) shall not apply to 
                        an arrangement unless the amount of the 
                        contributions described in subparagraph 
                        (D)(i)(II) which the employer is required to 
                        make under the arrangement for the plan year 
                        with respect to any employee is an amount equal 
                        to at least 4 percent of the employee's 
                        compensation.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after December 31, 2018.

SEC. 203. CERTAIN TAXABLE NON-TUITION FELLOWSHIP AND STIPEND PAYMENTS 
              TREATED AS COMPENSATION FOR IRA PURPOSES.

    (a) In General.--Section 219(f)(1) is amended by adding at the end 
the following: ``The term `compensation' shall include any amount 
included in gross income and paid to an individual to aid the 
individual in the pursuit of graduate or postdoctoral study.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2018.

SEC. 204. REPEAL OF MAXIMUM AGE FOR TRADITIONAL IRA CONTRIBUTIONS.

    (a) In General.--Section 219(d) is amended by striking paragraph 
(1).
    (b) Conforming Amendment.--Section 408A(c) is amended by striking 
paragraph (4) and by redesignating paragraphs (5), (6), and (7) as 
paragraphs (4), (5), and (6), respectively.
    (c) Effective Date.--The amendments made by this section shall 
apply to contributions made for taxable years beginning after December 
31, 2018.

SEC. 205. QUALIFIED EMPLOYER PLANS PROHIBITED FROM MAKING LOANS THROUGH 
              CREDIT CARDS AND OTHER SIMILAR ARRANGEMENTS.

    (a) In General.--Section 72(p)(2) is amended by redesignating 
subparagraph (D) as subparagraph (E) and by inserting after 
subparagraph (C) the following new subparagraph:
                    ``(D) Prohibition of loans through credit cards and 
                other similar arrangements.--Notwithstanding 
                subparagraph (A), paragraph (1) shall apply to any loan 
                which is made through the use of any credit card or any 
                other similar arrangement.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to loans made after the date of the enactment of this Act.

SEC. 206. PORTABILITY OF LIFETIME INCOME INVESTMENTS.

    (a) In General.--Section 401(a) is amended by inserting after 
paragraph (37) the following new paragraph:
            ``(38) Portability of lifetime income investments.--
                    ``(A) In general.--Except as may be otherwise 
                provided by regulations, a trust forming part of a 
                defined contribution plan shall not be treated as 
                failing to constitute a qualified trust under this 
                section solely by reason of allowing--
                            ``(i) qualified distributions of a lifetime 
                        income investment, or
                            ``(ii) distributions of a lifetime income 
                        investment in the form of a qualified plan 
                        distribution annuity contract,
                on or after the date that is 90 days prior to the date 
                on which such lifetime income investment is no longer 
                authorized to be held as an investment option under the 
                plan.
                    ``(B) Definitions.--For purposes of this 
                subsection--
                            ``(i) the term `qualified distribution' 
                        means a direct trustee-to-trustee transfer 
                        described in paragraph (31)(A) to an eligible 
                        retirement plan (as defined in section 
                        402(c)(8)(B)),
                            ``(ii) the term `lifetime income 
                        investment' means an investment option which is 
                        designed to provide an employee with election 
                        rights--
                                    ``(I) which are not uniformly 
                                available with respect to other 
                                investment options under the plan, and
                                    ``(II) which are to a lifetime 
                                income feature available through a 
                                contract or other arrangement offered 
                                under the plan (or under another 
                                eligible retirement plan (as so 
                                defined), if paid by means of a direct 
                                trustee-to-trustee transfer described 
                                in paragraph (31)(A) to such other 
                                eligible retirement plan),
                            ``(iii) the term `lifetime income feature' 
                        means--
                                    ``(I) a feature which guarantees a 
                                minimum level of income annually (or 
                                more frequently) for at least the 
                                remainder of the life of the employee 
                                or the joint lives of the employee and 
                                the employee's designated beneficiary, 
                                or
                                    ``(II) an annuity payable on behalf 
                                of the employee under which payments 
                                are made in substantially equal 
                                periodic payments (not less frequently 
                                than annually) over the life of the 
                                employee or the joint lives of the 
                                employee and the employee's designated 
                                beneficiary, and
                            ``(iv) the term `qualified plan 
                        distribution annuity contract' means an annuity 
                        contract purchased for a participant and 
                        distributed to the participant by a plan or 
                        contract described in subparagraph (B) of 
                        section 402(c)(8) (without regard to clauses 
                        (i) and (ii) thereof).''.
    (b) Cash or Deferred Arrangement.--
            (1) In general.--Section 401(k)(2)(B)(i) is amended by 
        striking ``or'' at the end of subclause (IV), by striking 
        ``and'' at the end of subclause (V) and inserting ``or'', and 
        by adding at the end the following new subclause:
                                    ``(VI) except as may be otherwise 
                                provided by regulations, with respect 
                                to amounts invested in a lifetime 
                                income investment (as defined in 
                                subsection (a)(38)(B)(ii)), the date 
                                that is 90 days prior to the date that 
                                such lifetime income investment may no 
                                longer be held as an investment option 
                                under the arrangement, and''.
            (2) Distribution requirement.--Section 401(k)(2)(B), as 
        amended by paragraph (1), is amended by striking ``and'' at the 
        end of clause (i), by striking the semicolon at the end of 
        clause (ii) and inserting ``, and'', and by adding at the end 
        the following new clause:
                            ``(iii) except as may be otherwise provided 
                        by regulations, in the case of amounts 
                        described in clause (i)(VI), will be 
                        distributed only in the form of a qualified 
                        distribution (as defined in subsection 
                        (a)(38)(B)(i)) or a qualified plan distribution 
                        annuity contract (as defined in subsection 
                        (a)(38)(B)(iv)),''.
    (c) Section 403(b) Plans.--
            (1) Annuity contracts.--Section 403(b)(11) is amended by 
        striking ``or'' at the end of subparagraph (B), by striking the 
        period at the end of subparagraph (C) and inserting ``, or'', 
        and by inserting after subparagraph (C) the following new 
        subparagraph:
                    ``(D) except as may be otherwise provided by 
                regulations, with respect to amounts invested in a 
                lifetime income investment (as defined in section 
                401(a)(38)(B)(ii))--
                            ``(i) on or after the date that is 90 days 
                        prior to the date that such lifetime income 
                        investment may no longer be held as an 
                        investment option under the contract, and
                            ``(ii) in the form of a qualified 
                        distribution (as defined in section 
                        401(a)(38)(B)(i)) or a qualified plan 
                        distribution annuity contract (as defined in 
                        section 401(a)(38)(B)(iv)).''.
            (2) Custodial accounts.--Section 403(b)(7)(A) is amended by 
        striking ``if--'' and all that follows and inserting ``if the 
        amounts are to be invested in regulated investment company 
        stock to be held in that custodial account, and under the 
        custodial account--
                            ``(i) no such amounts may be paid or made 
                        available to any distributee (unless such 
                        amount is a distribution to which section 
                        72(t)(2)(G) applies) before--
                                    ``(I) the employee dies,
                                    ``(II) the employee attains age 
                                59\1/2\,
                                    ``(III) the employee has a 
                                severance from employment,
                                    ``(IV) the employee becomes 
                                disabled (within the meaning of section 
                                72(m)(7)),
                                    ``(V) in the case of contributions 
                                made pursuant to a salary reduction 
                                agreement (within the meaning of 
                                section 3121(a)(5)(D)), the employee 
                                encounters financial hardship, or
                                    ``(VI) except as may be otherwise 
                                provided by regulations, with respect 
                                to amounts invested in a lifetime 
                                income investment (as defined in 
                                section 401(a)(38)(B)(ii)), the date 
                                that is 90 days prior to the date that 
                                such lifetime income investment may no 
                                longer be held as an investment option 
                                under the contract, and
                            ``(ii) in the case of amounts described in 
                        clause (i)(VI), such amounts will be 
                        distributed only in the form of a qualified 
                        distribution (as defined in section 
                        401(a)(38)(B)(i)) or a qualified plan 
                        distribution annuity contract (as defined in 
                        section 401(a)(38)(B)(iv)).''.
    (d) Eligible Deferred Compensation Plans.--
            (1) In general.--Section 457(d)(1)(A) is amended by 
        striking ``or'' at the end of clause (ii), by inserting ``or'' 
        at the end of clause (iii), and by adding after clause (iii) 
        the following:
                            ``(iv) except as may be otherwise provided 
                        by regulations, in the case of a plan 
                        maintained by an employer described in 
                        subsection (e)(1)(A), with respect to amounts 
                        invested in a lifetime income investment (as 
                        defined in section 401(a)(38)(B)(ii)), the date 
                        that is 90 days prior to the date that such 
                        lifetime income investment may no longer be 
                        held as an investment option under the plan,''.
            (2) Distribution requirement.--Section 457(d)(1) is amended 
        by striking ``and'' at the end of subparagraph (B), by striking 
        the period at the end of subparagraph (C) and inserting ``, 
        and'', and by inserting after subparagraph (C) the following 
        new subparagraph:
                    ``(D) except as may be otherwise provided by 
                regulations, in the case of amounts described in 
                subparagraph (A)(iv), such amounts will be distributed 
                only in the form of a qualified distribution (as 
                defined in section 401(a)(38)(B)(i)) or a qualified 
                plan distribution annuity contract (as defined in 
                section 401(a)(38)(B)(iv)).''.
    (e) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after December 31, 2018.

SEC. 207. TREATMENT OF CUSTODIAL ACCOUNTS ON TERMINATION OF SECTION 
              403(B) PLANS.

    Not later than six months after the date of enactment of this Act, 
the Secretary of the Treasury shall issue guidance to provide that, if 
an employer terminates the plan under which amounts are contributed to 
a custodial account under subparagraph (A) of section 403(b)(7), the 
plan administrator or custodian may distribute an individual custodial 
account in kind to a participant or beneficiary of the plan and the 
distributed custodial account shall be maintained by the custodian on a 
tax-deferred basis as a section 403(b)(7) custodial account, similar to 
the treatment of fully-paid individual annuity contracts under Revenue 
Ruling 2011-7, until amounts are actually paid to the participant or 
beneficiary. The guidance shall provide further (i) that the section 
403(b)(7) status of the distributed custodial account is generally 
maintained if the custodial account thereafter adheres to the 
requirements of section 403(b) that are in effect at the time of the 
distribution of the account and (ii) that a custodial account would not 
be considered distributed to the participant or beneficiary if the 
employer has any material retained rights under the account (but the 
employer would not be treated as retaining material rights simply 
because the custodial account was originally opened under a group 
contract).

SEC. 208. CLARIFICATION OF RETIREMENT INCOME ACCOUNT RULES RELATING TO 
              CHURCH-CONTROLLED ORGANIZATIONS.

    (a) In General.--Section 403(b)(9)(B) is amended by inserting 
``(including an employee described in section 414(e)(3)(B))'' after 
``employee described in paragraph (1)''.
    (b) Effective Date.--The amendment made by this section shall apply 
to years beginning before, on, or after the date of the enactment of 
this Act.

SEC. 209. INCREASE IN 10 PERCENT CAP FOR AUTOMATIC ENROLLMENT SAFE 
              HARBOR AFTER 1ST PLAN YEAR.

    (a) In General.--Section 401(k)(13)(C)(iii) is amended by striking 
``does not exceed 10 percent'' and inserting ``does not exceed 15 
percent (10 percent during the period described in subclause (I))''.
    (b) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after December 31, 2018.

SEC. 210. INCREASE IN CREDIT LIMITATION FOR SMALL EMPLOYER PENSION PLAN 
              STARTUP COSTS.

    (a) In General.--Paragraph (1) of section 45E(b) is amended to read 
as follows:
            ``(1) for the first credit year and each of the 2 taxable 
        years immediately following the first credit year, the greater 
        of--
                    ``(A) $500, or
                    ``(B) the lesser of--
                            ``(i) $250 for each employee of the 
                        eligible employer who is not a highly 
                        compensated employee (as defined in section 
                        414(q)) and who is eligible to participate in 
                        the eligible employer plan maintained by the 
                        eligible employer, or
                            ``(ii) $1,500, and''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2018.

SEC. 211. SMALL EMPLOYER AUTOMATIC ENROLLMENT CREDIT.

    (a) In General.--Section 45E is amended by adding at the end the 
following new subsection:''.
    ``(f) Credit for Auto-enrollment Option for Retirement Savings 
Options.--
            ``(1) In general.--The credit allowed under subsection (a) 
        for any taxable year during an eligible employer's retirement 
        auto-enrollment credit period shall be increased (without 
        regard to subsection (b)) by $500.
            ``(2) Retirement auto-enrollment credit period.--
                    ``(A) In general.--The retirement auto-enrollment 
                credit period with respect to any eligible employer is 
                the 3-taxable-year period beginning with the first 
                taxable year for which the employer includes an 
                eligible automatic contribution arrangement (as defined 
                in section 414(w)(3)) in a qualified employer plan (as 
                defined in section 4972(d)) sponsored by the employer.
                    ``(B) Maintenance of arrangement.--No taxable year 
                with respect to an employer shall be treated as 
                occurring within the retirement auto-enrollment credit 
                period unless the arrangement described in subparagraph 
                (A) is included in the plan for such year.
            ``(3) Not limited to new plans.--This subsection shall be 
        applied without regard to subsection (c)(2).''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2018.

SEC. 212. EXEMPTION FROM REQUIRED MINIMUM DISTRIBUTION RULES FOR 
              INDIVIDUALS WITH CERTAIN ACCOUNT BALANCES.

    (a) In General.--Section 401(a)(9) is amended by adding at the end 
the following new subparagraph:
                    ``(H) Exception from required minimum distributions 
                during life of employee where assets do not exceed 
                $50,000.--
                            ``(i) In general.--If on the last day of 
                        any calendar year the aggregate value of an 
                        employee's entire interest under all applicable 
                        eligible retirement plans does not exceed 
                        $50,000, then the requirements of subparagraph 
                        (A) with respect to any distribution relating 
                        to such year shall not apply with respect to 
                        such employee.
                            ``(ii) Applicable eligible retirement 
                        plan.--For purposes of this subparagraph, the 
                        term `applicable eligible retirement plan' 
                        means an eligible retirement plan (as defined 
                        in section 402(c)(8)(B)) other than a defined 
                        benefit plan.
                            ``(iii) Limit on required minimum 
                        distribution.--The required minimum 
                        distribution determined under subparagraph (A) 
                        for an employee under all applicable eligible 
                        retirement plans shall not exceed an amount 
                        equal to the excess of--
                                    ``(I) the aggregate value of an 
                                employee's entire interest under such 
                                plans on the last day of the calendar 
                                year to which such distribution 
                                relates, over
                                    ``(II) the dollar amount in effect 
                                under clause (i) for such calendar 
                                year.
                        The Secretary in regulations or other guidance 
                        may provide how such amount shall be 
                        distributed in the case of an individual with 
                        more than one applicable eligible retirement 
                        plan.
                            ``(iv) Inflation adjustment.--In the case 
                        of any calendar year beginning after 2019, the 
                        $50,000 amount in clause (i) shall be increased 
                        by an amount equal to--
                                    ``(I) such dollar amount, 
                                multiplied by
                                    ``(II) the cost of living 
                                adjustment determined under section 
                                1(f)(3) for the calendar year, 
                                determined by substituting `calendar 
                                year 2018' for `calendar year 2016' in 
                                subparagraph (A)(ii) thereof.
                        Any increase determined under this clause shall 
                        be rounded to the next lowest multiple of 
                        $5,000.
                            ``(v) Plan administrator reliance on 
                        employee certification.--An applicable eligible 
                        retirement plan described in clause (iii), 
                        (iv), (v), or (vi) of section 402(c)(8)(B) 
                        shall not be treated as failing to meet the 
                        requirements of this paragraph in the case of 
                        any failure to make a required minimum 
                        distribution for a calendar year if--
                                    ``(I) the aggregate value of an 
                                employee's entire interest under all 
                                applicable eligible retirement plans of 
                                the employer on the last day of the 
                                calendar year to which such 
                                distribution relates does not exceed 
                                the dollar amount in effect for such 
                                year under clause (i), and
                                    ``(II) the employee certifies that 
                                the aggregate value of the employee's 
                                entire interest under all applicable 
                                eligible retirement plans on the last 
                                day of the calendar year to which such 
                                distribution relates did not exceed the 
                                dollar amount in effect for such year 
                                under clause (i).
                            ``(vi) Aggregation rule.--All employers 
                        treated as a single employer under subsection 
                        (b), (c), (m), or (o) of section 414 shall be 
                        treated as a single employer for purposes of 
                        clause (v).''.
    (b) Plan Administrator Reporting.--Section 6047 is amended by 
redesignating subsection (h) as subsection (i) and by inserting after 
subsection (g) the following new subsection:
    ``(h) Account Balance for Participants Who Have Attained Age 69.--
            ``(1) In general.--Not later than January 31 of each year, 
        the plan administrator (as defined in section 414(g)) of each 
        applicable eligible retirement plan (as defined in section 
        401(a)(9)(H)) shall make a return to the Secretary with respect 
        to each participant of such plan who has attained age 69 as of 
        the end of the preceding calendar year which states--
                    ``(A) the name and plan number of the plan,
                    ``(B) the name and address of the plan 
                administrator,
                    ``(C) the name, address, and taxpayer 
                identification number of the participant, and
                    ``(D) the account balance of such participant as of 
                the end of the preceding calendar year.
            ``(2) Statement furnished to participant.--Every person 
        required to make a return under paragraph (1) with respect to a 
        participant shall furnish a copy of such return to such 
        participant.
            ``(3) Application to individual retirement plans and 
        annuities.--In the case of an applicable eligible retirement 
        plan described in clause (i) or (ii) of section 402(c)(8)(B)--
                    ``(A) any reference in this subsection to the plan 
                administrator shall be treated as a reference to the 
                trustee or issuer, as the case may be, and
                    ``(B) any reference in this subsection to the 
                participant shall be treated as a reference to the 
                individual for whom such account or annuity is 
                maintained.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to distributions required to be made in calendar years beginning 
more than 120 days after the date of the enactment of this Act.

SEC. 213. ELECTIVE DEFERRALS BY MEMBERS OF THE READY RESERVE OF A 
              RESERVE COMPONENT OF THE ARMED FORCES.

    (a) In General.--Section 402(g) is amended by adding at the end the 
following new paragraph:
            ``(9) Elective deferrals by members of ready reserve.--
                    ``(A) In general.--In the case of a qualified ready 
                reservist for any taxable year, the limitations of 
                subparagraphs (A) and (C) of paragraph (1) shall be 
                applied separately with respect to--
                            ``(i) elective deferrals of such qualified 
                        ready reservist with respect to compensation 
                        described in subparagraph (B), and
                            ``(ii) all other elective deferrals of such 
                        qualified ready reservist.
                    ``(B) Qualified ready reservist.--For purposes of 
                this paragraph, the term `qualified ready reservist' 
                means any individual for any taxable year if such 
                individual received compensation for service as a 
                member of the Ready Reserve of a reserve component (as 
                defined in section 101 of title 37, United States Code) 
                during such taxable year.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to plan years beginning after December 31, 2018.

                Subtitle B--Administrative Improvements

SEC. 221. PLAN ADOPTED BY FILING DUE DATE FOR YEAR MAY BE TREATED AS IN 
              EFFECT AS OF CLOSE OF YEAR.

    (a) In General.--Section 401(b) is amended--
            (1) by striking ``Retroactive Changes in Plan.--A stock 
        bonus'' and inserting ``Plan Amendments.--
            ``(1) Certain retroactive changes in plan.--A stock 
        bonus'', and
            (2) by adding at the end the following new paragraph:
            ``(2) Adoption of plan.--If an employer adopts a stock 
        bonus, pension, profit-sharing, or annuity plan after the close 
        of a taxable year but before the time prescribed by law for 
        filing the employer's return of tax for the taxable year 
        (including extensions thereof), the employer may elect to treat 
        the plan as having been adopted as of the last day of the 
        taxable year.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to plans adopted for taxable years beginning after December 31, 
2018.

SEC. 222. MODIFICATION OF NONDISCRIMINATION RULES TO PROTECT OLDER, 
              LONGER SERVICE PARTICIPANTS.

    (a) In General.--Section 401 is amended--
            (1) by redesignating subsection (o) as subsection (p), and
            (2) by inserting after subsection (n) the following new 
        subsection:
    ``(o) Special Rules for Applying Nondiscrimination Rules to Protect 
Older, Longer Service and Grandfathered Participants.--
            ``(1) Testing of defined benefit plans with closed classes 
        of participants.--
                    ``(A) Benefits, rights, or features provided to 
                closed classes.--A defined benefit plan which provides 
                benefits, rights, or features to a closed class of 
                participants shall not fail to satisfy the requirements 
                of subsection (a)(4) by reason of the composition of 
                such closed class or the benefits, rights, or features 
                provided to such closed class, if--
                            ``(i) for the plan year as of which the 
                        class closes and the 2 succeeding plan years, 
                        such benefits, rights, and features satisfy the 
                        requirements of subsection (a)(4) (without 
                        regard to this subparagraph but taking into 
                        account the rules of subparagraph (I)),
                            ``(ii) after the date as of which the class 
                        was closed, any plan amendment which modifies 
                        the closed class or the benefits, rights, and 
                        features provided to such closed class does not 
                        discriminate significantly in favor of highly 
                        compensated employees, and
                            ``(iii) the class was closed before April 
                        5, 2017, or the plan is described in 
                        subparagraph (C).
                    ``(B) Aggregate testing with defined contribution 
                plans permitted on a benefits basis.--
                            ``(i) In general.--For purposes of 
                        determining compliance with subsection (a)(4) 
                        and section 410(b), a defined benefit plan 
                        described in clause (iii) may be aggregated and 
                        tested on a benefits basis with 1 or more 
                        defined contribution plans, including with the 
                        portion of 1 or more defined contribution plans 
                        which--
                                    ``(I) provides matching 
                                contributions (as defined in subsection 
                                (m)(4)(A)),
                                    ``(II) provides annuity contracts 
                                described in section 403(b) which are 
                                purchased with matching contributions 
                                or nonelective contributions, or
                                    ``(III) consists of an employee 
                                stock ownership plan (within the 
                                meaning of section 4975(e)(7)) or a tax 
                                credit employee stock ownership plan 
                                (within the meaning of section 409(a)).
                            ``(ii) Special rules for matching 
                        contributions.--For purposes of clause (i), if 
                        a defined benefit plan is aggregated with a 
                        portion of a defined contribution plan 
                        providing matching contributions--
                                    ``(I) such defined benefit plan 
                                must also be aggregated with any 
                                portion of such defined contribution 
                                plan which provides elective deferrals 
                                described in subparagraph (A) or (C) of 
                                section 402(g)(3), and
                                    ``(II) such matching contributions 
                                shall be treated in the same manner as 
                                nonelective contributions, including 
                                for purposes of applying the rules of 
                                subsection (l).
                            ``(iii) Plans described.--A defined benefit 
                        plan is described in this clause if--
                                    ``(I) the plan provides benefits to 
                                a closed class of participants,
                                    ``(II) for the plan year as of 
                                which the class closes and the 2 
                                succeeding plan years, the plan 
                                satisfies the requirements of section 
                                410(b) and subsection (a)(4) (without 
                                regard to this subparagraph but taking 
                                into account the rules of subparagraph 
                                (I)),
                                    ``(III) after the date as of which 
                                the class was closed, any plan 
                                amendment which modifies the closed 
                                class or the benefits provided to such 
                                closed class does not discriminate 
                                significantly in favor of highly 
                                compensated employees, and
                                    ``(IV) the class was closed before 
                                April 5, 2017, or the plan is described 
                                in subparagraph (C).
                    ``(C) Plans described.--A plan is described in this 
                subparagraph if, taking into account any predecessor 
                plan--
                            ``(i) such plan has been in effect for at 
                        least 5 years as of the date the class is 
                        closed, and
                            ``(ii) during the 5-year period preceding 
                        the date the class is closed, there has not 
                        been a substantial increase in the coverage or 
                        value of the benefits, rights, or features 
                        described in subparagraph (A) or in the 
                        coverage or benefits under the plan described 
                        in subparagraph (B)(iii) (whichever is 
                        applicable).
                    ``(D) Determination of substantial increase for 
                benefits, rights, and features.--In applying 
                subparagraph (C)(ii) for purposes of subparagraph 
                (A)(iii), a plan shall be treated as having had a 
                substantial increase in coverage or value of the 
                benefits, rights, or features described in subparagraph 
                (A) during the applicable 5-year period only if, during 
                such period--
                            ``(i) the number of participants covered by 
                        such benefits, rights, or features on the date 
                        such period ends is more than 50 percent 
                        greater than the number of such participants on 
                        the first day of the plan year in which such 
                        period began, or
                            ``(ii) such benefits, rights, and features 
                        have been modified by 1 or more plan amendments 
                        in such a way that, as of the date the class is 
                        closed, the value of such benefits, rights, and 
                        features to the closed class as a whole is 
                        substantially greater than the value as of the 
                        first day of such 5-year period, solely as a 
                        result of such amendments.
                    ``(E) Determination of substantial increase for 
                aggregate testing on benefits basis.--In applying 
                subparagraph (C)(ii) for purposes of subparagraph 
                (B)(iii)(IV), a plan shall be treated as having had a 
                substantial increase in coverage or benefits during the 
                applicable 5-year period only if, during such period--
                            ``(i) the number of participants 
                        benefitting under the plan on the date such 
                        period ends is more than 50 percent greater 
                        than the number of such participants on the 
                        first day of the plan year in which such period 
                        began, or
                            ``(ii) the average benefit provided to such 
                        participants on the date such period ends is 
                        more than 50 percent greater than the average 
                        benefit provided on the first day of the plan 
                        year in which such period began.
                    ``(F) Certain employees disregarded.--For purposes 
                of subparagraphs (D) and (E), any increase in coverage 
                or value or in coverage or benefits, whichever is 
                applicable, which is attributable to such coverage and 
                value or coverage and benefits provided to employees--
                            ``(i) who became participants as a result 
                        of a merger, acquisition, or similar event 
                        which occurred during the 7-year period 
                        preceding the date the class is closed, or
                            ``(ii) who became participants by reason of 
                        a merger of the plan with another plan which 
                        had been in effect for at least 5 years as of 
                        the date of the merger,
                shall be disregarded, except that clause (ii) shall 
                apply for purposes of subparagraph (D) only if, under 
                the merger, the benefits, rights, or features under 1 
                plan are conformed to the benefits, rights, or features 
                of the other plan prospectively.
                    ``(G) Rules relating to average benefit.--For 
                purposes of subparagraph (E)--
                            ``(i) the average benefit provided to 
                        participants under the plan will be treated as 
                        having remained the same between the 2 dates 
                        described in subparagraph (E)(ii) if the 
                        benefit formula applicable to such participants 
                        has not changed between such dates, and
                            ``(ii) if the benefit formula applicable to 
                        1 or more participants under the plan has 
                        changed between such 2 dates, then the average 
                        benefit under the plan shall be considered to 
                        have increased by more than 50 percent only 
                        if--
                                    ``(I) the total amount determined 
                                under section 430(b)(1)(A)(i) for all 
                                participants benefitting under the plan 
                                for the plan year in which the 5-year 
                                period described in subparagraph (E) 
                                ends, exceeds
                                    ``(II) the total amount determined 
                                under section 430(b)(1)(A)(i) for all 
                                such participants for such plan year, 
                                by using the benefit formula in effect 
                                for each such participant for the first 
                                plan year in such 5-year period, by 
                                more than 50 percent.
                        In the case of a CSEC plan (as defined in 
                        section 414(y)), the normal cost of the plan 
                        (as determined under section 433(j)(1)(B)) 
                        shall be used in lieu of the amount determined 
                        under section 430(b)(1)(A)(i).
                    ``(H) Treatment as single plan.--For purposes of 
                subparagraphs (E) and (G), a plan described in section 
                413(c) shall be treated as a single plan rather than as 
                separate plans maintained by each employer in the plan.
                    ``(I) Special rules.--For purposes of subparagraphs 
                (A)(i) and (B)(iii)(II), the following rules shall 
                apply:
                            ``(i) In applying section 410(b)(6)(C), the 
                        closing of the class of participants shall not 
                        be treated as a significant change in coverage 
                        under section 410(b)(6)(C)(i)(II).
                            ``(ii) 2 or more plans shall not fail to be 
                        eligible to be aggregated and treated as a 
                        single plan solely by reason of having 
                        different plan years.
                            ``(iii) Changes in the employee population 
                        shall be disregarded to the extent attributable 
                        to individuals who become employees or cease to 
                        be employees, after the date the class is 
                        closed, by reason of a merger, acquisition, 
                        divestiture, or similar event.
                            ``(iv) Aggregation and all other testing 
                        methodologies otherwise applicable under 
                        subsection (a)(4) and section 410(b) may be 
                        taken into account.
                The rule of clause (ii) shall also apply for purposes 
                of determining whether plans to which subparagraph 
                (B)(i) applies may be aggregated and treated as 1 plan 
                for purposes of determining whether such plans meet the 
                requirements of subsection (a)(4) and section 410(b).
                    ``(J) Spun-off plans.--For purposes of this 
                paragraph, if a portion of a defined benefit plan 
                described in subparagraph (A) or (B)(iii) is spun off 
                to another employer and the spun-off plan continues to 
                satisfy the requirements of--
                            ``(i) subparagraph (A)(i) or (B)(iii)(II), 
                        whichever is applicable, if the original plan 
                        was still within the 3-year period described in 
                        such subparagraph at the time of the spin off, 
                        and
                            ``(ii) subparagraph (A)(ii) or 
                        (B)(iii)(III), whichever is applicable,
                the treatment under subparagraph (A) or (B) of the 
                spun-off plan shall continue with respect to such other 
                employer.
            ``(2) Testing of defined contribution plans.--
                    ``(A) Testing on a benefits basis.--A defined 
                contribution plan shall be permitted to be tested on a 
                benefits basis if--
                            ``(i) such defined contribution plan 
                        provides make-whole contributions to a closed 
                        class of participants whose accruals under a 
                        defined benefit plan have been reduced or 
                        eliminated,
                            ``(ii) for the plan year of the defined 
                        contribution plan as of which the class 
                        eligible to receive such make-whole 
                        contributions closes and the 2 succeeding plan 
                        years, such closed class of participants 
                        satisfies the requirements of section 
                        410(b)(2)(A)(i) (determined by applying the 
                        rules of paragraph (1)(I)),
                            ``(iii) after the date as of which the 
                        class was closed, any plan amendment to the 
                        defined contribution plan which modifies the 
                        closed class or the allocations, benefits, 
                        rights, and features provided to such closed 
                        class does not discriminate significantly in 
                        favor of highly compensated employees, and
                            ``(iv) the class was closed before April 5, 
                        2017, or the defined benefit plan under clause 
                        (i) is described in paragraph (1)(C) (as 
                        applied for purposes of paragraph 
                        (1)(B)(iii)(IV)).
                    ``(B) Aggregation with plans including matching 
                contributions.--
                            ``(i) In general.--With respect to 1 or 
                        more defined contribution plans described in 
                        subparagraph (A), for purposes of determining 
                        compliance with subsection (a)(4) and section 
                        410(b), the portion of such plans which 
                        provides make-whole contributions or other 
                        nonelective contributions may be aggregated and 
                        tested on a benefits basis with the portion of 
                        1 or more other defined contribution plans 
                        which--
                                    ``(I) provides matching 
                                contributions (as defined in subsection 
                                (m)(4)(A)),
                                    ``(II) provides annuity contracts 
                                described in section 403(b) which are 
                                purchased with matching contributions 
                                or nonelective contributions, or
                                    ``(III) consists of an employee 
                                stock ownership plan (within the 
                                meaning of section 4975(e)(7)) or a tax 
                                credit employee stock ownership plan 
                                (within the meaning of section 409(a)).
                            ``(ii) Special rules for matching 
                        contributions.--Rules similar to the rules of 
                        paragraph (1)(B)(ii) shall apply for purposes 
                        of clause (i).
                    ``(C) Special rules for testing defined 
                contribution plan features providing matching 
                contributions to certain older, longer service 
                participants.--In the case of a defined contribution 
                plan which provides benefits, rights, or features to a 
                closed class of participants whose accruals under a 
                defined benefit plan have been reduced or eliminated, 
                the plan shall not fail to satisfy the requirements of 
                subsection (a)(4) solely by reason of the composition 
                of the closed class or the benefits, rights, or 
                features provided to such closed class if the defined 
                contribution plan and defined benefit plan otherwise 
                meet the requirements of subparagraph (A) but for the 
                fact that the make-whole contributions under the 
                defined contribution plan are made in whole or in part 
                through matching contributions.
                    ``(D) Spun-off plans.--For purposes of this 
                paragraph, if a portion of a defined contribution plan 
                described in subparagraph (A) or (C) is spun off to 
                another employer, the treatment under subparagraph (A) 
                or (C) of the spun-off plan shall continue with respect 
                to the other employer if such plan continues to comply 
                with the requirements of clauses (ii) (if the original 
                plan was still within the 3-year period described in 
                such clause at the time of the spin off) and (iii) of 
                subparagraph (A), as determined for purposes of 
                subparagraph (A) or (C), whichever is applicable.
            ``(3) Definitions.--For purposes of this subsection--
                    ``(A) Make-whole contributions.--Except as 
                otherwise provided in paragraph (2)(C), the term `make-
                whole contributions' means nonelective allocations for 
                each employee in the class which are reasonably 
                calculated, in a consistent manner, to replace some or 
                all of the retirement benefits which the employee would 
                have received under the defined benefit plan and any 
                other plan or qualified cash or deferred arrangement 
                under subsection (k)(2) if no change had been made to 
                such defined benefit plan and such other plan or 
                arrangement. For purposes of the preceding sentence, 
                consistency shall not be required with respect to 
                employees who were subject to different benefit 
                formulas under the defined benefit plan.
                    ``(B) References to closed class of participants.--
                References to a closed class of participants and 
                similar references to a closed class shall include 
                arrangements under which 1 or more classes of 
                participants are closed, except that 1 or more classes 
                of participants closed on different dates shall not be 
                aggregated for purposes of determining the date any 
                such class was closed.
                    ``(C) Highly compensated employee.--The term 
                `highly compensated employee' has the meaning given 
                such term in section 414(q).''.
    (b) Participation Requirements.--Section 401(a)(26) is amended by 
adding at the end the following new subparagraph:
                    ``(I) Protected participants.--
                            ``(i) In general.--A plan shall be deemed 
                        to satisfy the requirements of subparagraph (A) 
                        if--
                                    ``(I) the plan is amended--
                                            ``(aa) to cease all benefit 
                                        accruals, or
                                            ``(bb) to provide future 
                                        benefit accruals only to a 
                                        closed class of participants,
                                    ``(II) the plan satisfies 
                                subparagraph (A) (without regard to 
                                this subparagraph) as of the effective 
                                date of the amendment, and
                                    ``(III) the amendment was adopted 
                                before April 5, 2017, or the plan is 
                                described in clause (ii).
                            ``(ii) Plans described.--A plan is 
                        described in this clause if the plan would be 
                        described in subsection (o)(1)(C), as applied 
                        for purposes of subsection (o)(1)(B)(iii)(IV) 
                        and by treating the effective date of the 
                        amendment as the date the class was closed for 
                        purposes of subsection (o)(1)(C).
                            ``(iii) Special rules.--For purposes of 
                        clause (i)(II), in applying section 
                        410(b)(6)(C), the amendments described in 
                        clause (i) shall not be treated as a 
                        significant change in coverage under section 
                        410(b)(6)(C)(i)(II).
                            ``(iv) Spun-off plans.--For purposes of 
                        this subparagraph, if a portion of a plan 
                        described in clause (i) is spun off to another 
                        employer, the treatment under clause (i) of the 
                        spun-off plan shall continue with respect to 
                        the other employer.''.
    (c) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall take effect on the date 
        of the enactment of this Act, without regard to whether any 
        plan modifications referred to in such amendments are adopted 
        or effective before, on, or after such date of enactment.
            (2) Special rules.--
                    (A) Election of earlier application.--At the 
                election of the plan sponsor, the amendments made by 
                this section shall apply to plan years beginning after 
                December 31, 2013.
                    (B) Closed classes of participants.--For purposes 
                of paragraphs (1)(A)(iii), (1)(B)(iii)(IV), and 
                (2)(A)(iv) of section 401(o) of the Internal Revenue 
                Code of 1986 (as added by this section), a closed class 
                of participants shall be treated as being closed before 
                April 5, 2017, if the plan sponsor's intention to 
                create such closed class is reflected in formal written 
                documents and communicated to participants before such 
                date.
                    (C) Certain post-enactment plan amendments.--A plan 
                shall not be treated as failing to be eligible for the 
                application of section 401(o)(1)(A), 401(o)(1)(B)(iii), 
                or 401(a)(26) of such Code (as added by this section) 
                to such plan solely because in the case of--
                            (i) such section 401(o)(1)(A), the plan was 
                        amended before the date of the enactment of 
                        this Act to eliminate 1 or more benefits, 
                        rights, or features, and is further amended 
                        after such date of enactment to provide such 
                        previously eliminated benefits, rights, or 
                        features to a closed class of participants, or
                            (ii) such section 401(o)(1)(B)(iii) or 
                        section 401(a)(26), the plan was amended before 
                        the date of the enactment of this Act to cease 
                        all benefit accruals, and is further amended 
                        after such date of enactment to provide benefit 
                        accruals to a closed class of participants. Any 
                        such section shall only apply if the plan 
                        otherwise meets the requirements of such 
                        section and in applying such section, the date 
                        the class of participants is closed shall be 
                        the effective date of the later amendment.

SEC. 223. FIDUCIARY SAFE HARBOR FOR SELECTION OF LIFETIME INCOME 
              PROVIDER.

    Section 404 of the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1104) is amended by adding at the end the following:
    ``(e) Safe Harbor for Annuity Selection.--
            ``(1) In general.--With respect to the selection of an 
        insurer for a guaranteed retirement income contract, the 
        requirements of subsection (a)(1)(B) will be deemed to be 
        satisfied if a fiduciary--
                    ``(A) engages in an objective, thorough, and 
                analytical search for the purpose of identifying 
                insurers from which to purchase such contracts;
                    ``(B) with respect to each insurer identified under 
                subparagraph (A)--
                            ``(i) considers the financial capability of 
                        such insurer to satisfy its obligations under 
                        the guaranteed retirement income contract; and
                            ``(ii) considers the cost (including fees 
                        and commissions) of the guaranteed retirement 
                        income contract offered by the insurer in 
                        relation to the benefits and product features 
                        of the contract and administrative services to 
                        be provided under such contract; and
                    ``(C) on the basis of such consideration, concludes 
                that--
                            ``(i) at the time of the selection, the 
                        insurer is financially capable of satisfying 
                        its obligations under the guaranteed retirement 
                        income contract; and
                            ``(ii) the relative cost of the selected 
                        guaranteed retirement income contract as 
                        described in subparagraph (B)(ii) is 
                        reasonable.
            ``(2) Financial capability of the insurer.--A fiduciary 
        will be deemed to satisfy the requirements of paragraphs 
        (1)(B)(i) and (1)(C)(i) if--
                    ``(A) the fiduciary obtains written representations 
                from the insurer that--
                            ``(i) the insurer is licensed to offer 
                        guaranteed retirement income contracts;
                            ``(ii) the insurer, at the time of 
                        selection and for each of the immediately 
                        preceding 7 plan years--
                                    ``(I) operates under a certificate 
                                of authority from the insurance 
                                commissioner of its domiciliary State 
                                which has not been revoked or 
                                suspended;
                                    ``(II) has filed audited financial 
                                statements in accordance with the laws 
                                of its domiciliary State under 
                                applicable statutory accounting 
                                principles;
                                    ``(III) maintains (and has 
                                maintained) reserves which satisfies 
                                all the statutory requirements of all 
                                States where the insurer does business; 
                                and
                                    ``(IV) is not operating under an 
                                order of supervision, rehabilitation, 
                                or liquidation;
                            ``(iii) the insurer undergoes, at least 
                        every 5 years, a financial examination (within 
                        the meaning of the law of its domiciliary 
                        State) by the insurance commissioner of the 
                        domiciliary State (or representative, designee, 
                        or other party approved by such commissioner); 
                        and
                            ``(iv) the insurer will notify the 
                        fiduciary of any change in circumstances 
                        occurring after the provision of the 
                        representations in clauses (i), (ii), and (iii) 
                        which would preclude the insurer from making 
                        such representations at the time of issuance of 
                        the guaranteed retirement income contract; and
                    ``(B) after receiving such representations and as 
                of the time of selection, the fiduciary has not 
                received any notice described in subparagraph (A)(iv) 
                and is in possession of no other information which 
                would cause the fiduciary to question the 
                representations provided.
            ``(3) No requirement to select lowest cost.--Nothing in 
        this subsection shall be construed to require a fiduciary to 
        select the lowest cost contract. A fiduciary may consider the 
        value of a contract, including features and benefits of the 
        contract and attributes of the insurer (including, without 
        limitation, the insurer's financial strength) in conjunction 
        with the cost of the contract.
            ``(4) Time of selection.--
                    ``(A) In general.--For purposes of this subsection, 
                the time of selection is--
                            ``(i) the time that the insurer and the 
                        contract are selected for distribution of 
                        benefits to a specific participant or 
                        beneficiary; or
                            ``(ii) if the fiduciary periodically 
                        reviews the continuing appropriateness of the 
                        conclusion described in paragraph (1)(C) with 
                        respect to a selected insurer, taking into 
                        account the considerations described in such 
                        paragraph, the time that the insurer and the 
                        contract are selected to provide benefits at 
                        future dates to participants or beneficiaries 
                        under the plan.
                Nothing in the preceding sentence shall be construed to 
                require the fiduciary to review the appropriateness of 
                a selection after the purchase of a contract for a 
                participant or beneficiary.
                    ``(B) Periodic review.--A fiduciary will be deemed 
                to have conducted the periodic review described in 
                subparagraph (A)(ii) if the fiduciary obtains the 
                written representations described in clauses (i), (ii), 
                and (iii) of paragraph (2)(A) from the insurer on an 
                annual basis, unless the fiduciary receives any notice 
                described in paragraph (2)(A)(iv) or otherwise becomes 
                aware of facts that would cause the fiduciary to 
                question such representations.
            ``(5) Limited liability.--A fiduciary which satisfies the 
        requirements of this subsection shall not be liable following 
        the distribution of any benefit, or the investment by or on 
        behalf of a participant or beneficiary pursuant to the selected 
        guaranteed retirement income contract, for any losses that may 
        result to the participant or beneficiary due to an insurer's 
        inability to satisfy its financial obligations under the terms 
        of such contract.
            ``(6) Definitions.--For purposes of this subsection--
                    ``(A) Insurer.--The term `insurer' means an 
                insurance company, insurance service, or insurance 
                organization, including affiliates of such companies.
                    ``(B) Guaranteed retirement income contract.--The 
                term `guaranteed retirement income contract' means an 
                annuity contract for a fixed term or a contract (or 
                provision or feature thereof) which provides guaranteed 
                benefits annually (or more frequently) for at least the 
                remainder of the life of the participant or the joint 
                lives of the participant and the participant's 
                designated beneficiary as part of an individual account 
                plan.''.

SEC. 224. DISCLOSURE REGARDING LIFETIME INCOME.

    (a) In General.--Subparagraph (B) of section 105(a)(2) of the 
Employee Retirement Income Security Act of 1974 (29 U.S.C. 1025(a)(2)) 
is amended--
            (1) in clause (i), by striking ``and'' at the end;
            (2) in clause (ii), by striking ``diversification.'' and 
        inserting ``diversification, and''; and
            (3) by inserting at the end the following:
                            ``(iii) the lifetime income disclosure 
                        described in subparagraph (D)(i).
                In the case of pension benefit statements described in 
                clause (i) of paragraph (1)(A), a lifetime income 
                disclosure under clause (iii) of this subparagraph 
                shall be required to be included in only one pension 
                benefit statement during any one 12-month period.''.
    (b) Lifetime Income.--Paragraph (2) of section 105(a) of the 
Employee Retirement Income Security Act of 1974 (29 U.S.C. 1025(a)) is 
amended by adding at the end the following new subparagraph:
                    ``(D) Lifetime income disclosure.--
                            ``(i) In general.--
                                    ``(I) Disclosure.--A lifetime 
                                income disclosure shall set forth the 
                                lifetime income stream equivalent of 
                                the total benefits accrued with respect 
                                to the participant or beneficiary.
                                    ``(II) Lifetime income stream 
                                equivalent of the total benefits 
                                accrued.--For purposes of this 
                                subparagraph, the term `lifetime income 
                                stream equivalent of the total benefits 
                                accrued' means the amount of monthly 
                                payments the participant or beneficiary 
                                would receive if the total accrued 
                                benefits of such participant or 
                                beneficiary were used to provide 
                                lifetime income streams described in 
                                subclause (III), based on assumptions 
                                specified in rules prescribed by the 
                                Secretary.
                                    ``(III) Lifetime income streams.--
                                The lifetime income streams described 
                                in this subclause are a qualified joint 
                                and survivor annuity (as defined in 
                                section 205(d)), based on assumptions 
                                specified in rules prescribed by the 
                                Secretary, including the assumption 
                                that the participant or beneficiary has 
                                a spouse of equal age, and a single 
                                life annuity. Such lifetime income 
                                streams may have a term certain or 
                                other features to the extent permitted 
                                under rules prescribed by the 
                                Secretary.
                            ``(ii) Model disclosure.--Not later than 1 
                        year after the date of the enactment of the 
                        Retirement, Savings, and Other Tax Relief Act 
                        of 2018, the Secretary shall issue a model 
                        lifetime income disclosure, written in a manner 
                        so as to be understood by the average plan 
                        participant, which--
                                    ``(I) explains that the lifetime 
                                income stream equivalent is only 
                                provided as an illustration;
                                    ``(II) explains that the actual 
                                payments under the lifetime income 
                                stream described in clause (i)(III) 
                                which may be purchased with the total 
                                benefits accrued will depend on 
                                numerous factors and may vary 
                                substantially from the lifetime income 
                                stream equivalent in the disclosures;
                                    ``(III) explains the assumptions 
                                upon which the lifetime income stream 
                                equivalent was determined; and
                                    ``(IV) provides such other similar 
                                explanations as the Secretary considers 
                                appropriate.
                            ``(iii) Assumptions and rules.--Not later 
                        than 1 year after the date of the enactment of 
                        the Retirement, Savings, and Other Tax Relief 
                        Act of 2018, the Secretary shall--
                                    ``(I) prescribe assumptions which 
                                administrators of individual account 
                                plans may use in converting total 
                                accrued benefits into lifetime income 
                                stream equivalents for purposes of this 
                                subparagraph; and
                                    ``(II) issue interim final rules 
                                under clause (i).
                        In prescribing assumptions under subclause (I), 
                        the Secretary may prescribe a single set of 
                        specific assumptions (in which case the 
                        Secretary may issue tables or factors which 
                        facilitate such conversions), or ranges of 
                        permissible assumptions. To the extent that an 
                        accrued benefit is or may be invested in a 
                        lifetime income stream described in clause 
                        (i)(III), the assumptions prescribed under 
                        subclause (I) shall, to the extent appropriate, 
                        permit administrators of individual account 
                        plans to use the amounts payable under such 
                        lifetime income stream as a lifetime income 
                        stream equivalent.
                            ``(iv) Limitation on liability.--No plan 
                        fiduciary, plan sponsor, or other person shall 
                        have any liability under this title solely by 
                        reason of the provision of lifetime income 
                        stream equivalents which are derived in 
                        accordance with the assumptions and rules 
                        described in clause (iii) and which include the 
                        explanations contained in the model lifetime 
                        income disclosure described in clause (ii). 
                        This clause shall apply without regard to 
                        whether the provision of such lifetime income 
                        stream equivalent is required by subparagraph 
                        (B)(iii).
                            ``(v) Effective date.--The requirement in 
                        subparagraph (B)(iii) shall apply to pension 
                        benefit statements furnished more than 12 
                        months after the latest of the issuance by the 
                        Secretary of--
                                    ``(I) interim final rules under 
                                clause (i);
                                    ``(II) the model disclosure under 
                                clause (ii); or
                                    ``(III) the assumptions under 
                                clause (iii).''.

SEC. 225. MODIFICATION OF PBGC PREMIUMS FOR CSEC PLANS.

    (a) Flat Rate Premium.--Subparagraph (A) of section 4006(a)(3) of 
the Employee Retirement Income Security Act of 1974 (29 U.S.C. 
1306(a)(3)) is amended--
            (1) in clause (i), by striking ``plan,'' and inserting 
        ``plan other than a CSEC plan (as defined in section 
        210(f)(1))'';
            (2) in clause (v), by striking ``or'' at the end;
            (3) in clause (vi), by striking the period at the end and 
        inserting ``, or''; and
            (4) by adding at the end the following new clause:
                            ``(vii) in the case of a CSEC plan (as 
                        defined in section 210(f)(1)), for plan years 
                        beginning after December 31, 2018, for each 
                        individual who is a participant in such plan 
                        during the plan year an amount equal to the sum 
                        of--
                                    ``(I) the additional premium (if 
                                any) determined under subparagraph (E), 
                                and
                                    ``(II) $19.''.
    (b) Variable Rate Premium.--
            (1) Unfunded vested benefits.--
                    (A) In general.--Subparagraph (E) of section 
                4006(a)(3) of the Employee Retirement Income Security 
                Act of 1974 (29 U.S.C. 1306(a)(3)) is amended by adding 
                at the end the following new clause:
                            ``(v) For purposes of clause (ii), in the 
                        case of a CSEC plan (as defined in section 
                        210(f)(1)), the term `unfunded vested benefits' 
                        means, for plan years beginning after December 
                        31, 2018, the excess (if any) of--
                                    ``(I) the funding liability of the 
                                plan as determined under section 
                                306(j)(5)(C) for the plan year by only 
                                taking into account vested benefits, 
                                over
                                    ``(II) the fair market value of 
                                plan assets for the plan year which are 
                                held by the plan on the valuation 
                                date.''.
                    (B) Conforming amendment.--Clause (iii) of section 
                4006(a)(3)(E) of such Act (29 U.S.C. 1306(a)(3)(E)) is 
                amended by striking ``For purposes'' and inserting 
                ``Except as provided in clause (v), for purposes''.
            (2) Applicable dollar amount.--
                    (A) In general.--Paragraph (8) of section 4006(a) 
                of such Act (29 U.S.C. 1306(a)) is amended by adding at 
                the end the following new subparagraph:
                    ``(E) CSEC plans.--In the case of a CSEC plan (as 
                defined in section 210(f)(1)), the applicable dollar 
                amount shall be $9.''.
                    (B) Conforming amendment.--Subparagraph (A) of 
                section 4006(a)(8) of such Act (29 U.S.C. 1306(a)(8)) 
                is amended by striking ``(B) and (C)'' and inserting 
                ``(B), (C), and (E)''.

                  Subtitle C--Other Savings Provisions

SEC. 231. EXPANSION OF SECTION 529 PLANS.

    (a) Distributions for Certain Expenses Associated With Registered 
Apprenticeship Programs.--Section 529(c) of the Internal Revenue Code 
of 1986 is amended by adding at the end the following new paragraph:
            ``(8) Treatment of certain expenses associated with 
        registered apprenticeship programs.--Any reference in this 
        subsection to the term `qualified higher education expense' 
        shall include a reference to expenses for fees, books, 
        supplies, and equipment required for the participation of a 
        designated beneficiary in an apprenticeship program registered 
        and certified with the Secretary of Labor under section 1 of 
        the National Apprenticeship Act (29 U.S.C. 50).''.
    (b) Distributions for Certain Homeschooling Expenses.--Section 
529(c)(7) of such Code is amended by striking ``include a reference 
to'' and all that follows and inserting ``include a reference to--
                    ``(A) expenses for tuition in connection with 
                enrollment or attendance of a designated beneficiary at 
                an elementary or secondary public, private, or 
                religious school, and
                    ``(B) expenses, with respect to a designated 
                beneficiary, for--
                            ``(i) curriculum and curricular materials,
                            ``(ii) books or other instructional 
                        materials,
                            ``(iii) online educational materials,
                            ``(iv) tuition for tutoring or educational 
                        classes outside of the home (but only if the 
                        tutor or class instructor is not related 
                        (within the meaning of section 152(d)(2)) to 
                        the student),
                            ``(v) dual enrollment in an institution of 
                        higher education, and
                            ``(vi) educational therapies for students 
                        with disabilities,
                in connection with a homeschool (whether treated as a 
                homeschool or a private school for purposes of 
                applicable State law).''.
    (c) Distributions for Qualified Education Loan Repayments.--
            (1) In general.--Section 529(c) of such Code, as amended by 
        subsection (a), is amended by adding at the end the following 
        new paragraph:
            ``(9) Treatment of qualified education loan repayments.--
                    ``(A) In general.--Any reference in this subsection 
                to the term `qualified higher education expense' shall 
                include a reference to amounts paid as principal or 
                interest on any qualified education loan (as defined in 
                section 221(d)) of the designated beneficiary or a 
                sibling of the designated beneficiary.
                    ``(B) Limitation.--The amount of distributions 
                treated as a qualified higher education expense under 
                this paragraph with respect to the loans of any 
                individual shall not exceed $10,000 (reduced by the 
                amount of distributions so treated for all prior 
                taxable years).
                    ``(C) Special rules for siblings of the designated 
                beneficiary.--
                            ``(i) Separate accounting.--For purposes of 
                        subparagraph (B) and subsection (d), amounts 
                        treated as a qualified higher education expense 
                        with respect to the loans of a sibling of the 
                        designated beneficiary shall be taken into 
                        account with respect to such sibling and not 
                        with respect to such designated beneficiary.
                            ``(ii) Sibling defined.--For purposes of 
                        this paragraph, the term `sibling' means an 
                        individual who bears a relationship to the 
                        designated beneficiary which is described in 
                        section 152(d)(2)(B).''.
            (2) Coordination with deduction for student loan 
        interest.--Section 221(e)(1) of such Code is amended by adding 
        at the end the following: ``The deduction otherwise allowable 
        under subsection (a) (prior to the application of subsection 
        (b)) to the taxpayer for any taxable year shall be reduced (but 
        not below zero) by so much of the distributions treated as a 
        qualified higher education expense under section 529(c)(9) with 
        respect to loans of the taxpayer as would be includible in 
        gross income under section 529(c)(3)(A) for such taxable year 
        but for such treatment.''.
    (d) Distributions for Certain Elementary and Secondary School 
Expenses in Addition to Tuition.--Section 529(c)(7)(A), as amended by 
subsection (b), is amended to read as follows:
                    ``(A) expenses described in section 530(b)(3)(A)(i) 
                in connection with enrollment or attendance of a 
                designated beneficiary at an elementary or secondary 
                public, private, or religious school, and''.
    (e) Unborn Children Allowed as Account Beneficiaries.--Section 
529(e) is amended by adding at the end the following new paragraph:
            ``(6) Treatment of unborn children.--
                    ``(A) In general.--Nothing shall prevent an unborn 
                child from being treated as a designated beneficiary or 
                an individual under this section.
                    ``(B) Unborn child.--For purposes of this 
                paragraph--
                            ``(i) In general.--The term `unborn child' 
                        means a child in utero.
                            ``(ii) Child in utero.--The term `child in 
                        utero' means a member of the species homo 
                        sapiens, at any stage of development, who is 
                        carried in the womb.''.
    (f) Effective Dates.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply to 
        distributions made after December 31, 2018.
            (2) Unborn children allowed as account beneficiaries.--The 
        amendment made by subsection (e) shall apply to contributions 
        made after December 31, 2018.

SEC. 232. PENALTY-FREE WITHDRAWALS FROM RETIREMENT PLANS FOR 
              INDIVIDUALS IN CASE OF BIRTH OF CHILD OR ADOPTION.

    (a) In General.--Section 72(t)(2) is amended by adding at the end 
the following new subparagraph:
                    ``(H) Distributions from retirement plans in case 
                of birth of child or adoption.--
                            ``(i) In general.--Any qualified birth or 
                        adoption distribution.
                            ``(ii) Limitation.--The aggregate amount 
                        which may be treated as qualified birth or 
                        adoption distributions by any individual with 
                        respect to any birth or adoption shall not 
                        exceed $7,500.
                            ``(iii) Qualified birth or adoption 
                        distribution.--For purposes of this 
                        subparagraph--
                                    ``(I) In general.--The term 
                                `qualified birth or adoption 
                                distribution' means any distribution 
                                from an applicable eligible retirement 
                                plan to an individual if made during 
                                the 1-year period beginning on the date 
                                on which a child of the individual is 
                                born or on which the legal adoption by 
                                the individual of an eligible child is 
                                finalized.
                                    ``(II) Eligible child.--The term 
                                `eligible child' means any individual 
                                (other than a child of the taxpayer's 
                                spouse) who has not attained age 18 or 
                                is physically or mentally incapable of 
                                self-support.
                            ``(iv) Treatment of plan distributions.--
                                    ``(I) In general.--If a 
                                distribution to an individual would 
                                (without regard to clause (ii)) be a 
                                qualified birth or adoption 
                                distribution, a plan shall not be 
                                treated as failing to meet any 
                                requirement of this title merely 
                                because the plan treats the 
                                distribution as a qualified birth or 
                                adoption distribution, unless the 
                                aggregate amount of such distributions 
                                from all plans maintained by the 
                                employer (and any member of any 
                                controlled group which includes the 
                                employer) to such individual exceeds 
                                $7,500.
                                    ``(II) Controlled group.--For 
                                purposes of subclause (I), the term 
                                `controlled group' means any group 
                                treated as a single employer under 
                                subsection (b), (c), (m), or (o) of 
                                section 414.
                            ``(v) Amount distributed may be repaid.--
                                    ``(I) In general.--Any individual 
                                who receives a qualified birth or 
                                adoption distribution may make one or 
                                more contributions in an aggregate 
                                amount not to exceed the amount of such 
                                distribution to an applicable eligible 
                                retirement plan of which such 
                                individual is a beneficiary and to 
                                which a rollover contribution of such 
                                distribution could be made under 
                                section 402(c), 403(a)(4), 403(b)(8), 
                                408(d)(3), or 457(e)(16), as the case 
                                may be.
                                    ``(II) Limitation on contributions 
                                to applicable eligible retirement plans 
                                other than IRAs.--The aggregate amount 
                                of contributions made by an individual 
                                under subclause (I) to any applicable 
                                eligible retirement plan which is not 
                                an individual retirement plan shall not 
                                exceed the aggregate amount of 
                                qualified birth or adoption 
                                distributions which are made from such 
                                plan to such individual. Subclause (I) 
                                shall not apply to contributions to any 
                                applicable eligible retirement plan 
                                which is not an individual retirement 
                                plan unless the individual is eligible 
                                to make contributions (other than those 
                                described in subclause (I)) to such 
                                applicable eligible retirement plan.
                                    ``(III) Treatment of repayments of 
                                distributions from applicable eligible 
                                retirement plans other than IRAs.--If a 
                                contribution is made under subclause 
                                (I) with respect to a qualified birth 
                                or adoption distribution from an 
                                applicable eligible retirement plan 
                                other than an individual retirement 
                                plan, then the taxpayer shall, to the 
                                extent of the amount of the 
                                contribution, be treated as having 
                                received such distribution in an 
                                eligible rollover distribution (as 
                                defined in section 402(c)(4)) and as 
                                having transferred the amount to the 
                                applicable eligible retirement plan in 
                                a direct trustee to trustee transfer 
                                within 60 days of the distribution.
                                    ``(IV) Treatment of repayments for 
                                distributions from iras.--If a 
                                contribution is made under subclause 
                                (I) with respect to a qualified birth 
                                or adoption distribution from an 
                                individual retirement plan, then, to 
                                the extent of the amount of the 
                                contribution, such distribution shall 
                                be treated as a distribution described 
                                in section 408(d)(3) and as having been 
                                transferred to the applicable eligible 
                                retirement plan in a direct trustee to 
                                trustee transfer within 60 days of the 
                                distribution.
                            ``(vi) Definition and special rules.--For 
                        purposes of this subparagraph--
                                    ``(I) Applicable eligible 
                                retirement plan.--The term `applicable 
                                eligible retirement plan' means an 
                                eligible retirement plan (as defined in 
                                section 402(c)(8)(B)) other than a 
                                defined benefit plan.
                                    ``(II) Exemption of distributions 
                                from trustee to trustee transfer and 
                                withholding rules.--For purposes of 
                                sections 401(a)(31), 402(f), and 3405, 
                                a qualified birth or adoption 
                                distribution shall not be treated as an 
                                eligible rollover distribution.
                                    ``(III) Taxpayer must include 
                                tin.--A distribution shall not be 
                                treated as a qualified birth or 
                                adoption distribution with respect to 
                                any child or eligible child unless the 
                                taxpayer includes the name, age, and 
                                TIN of such child or eligible child on 
                                the taxpayer's return of tax for the 
                                taxable year.
                                    ``(IV) Distributions treated as 
                                meeting plan distribution 
                                requirements.--Any qualified birth or 
                                adoption distribution shall be treated 
                                as meeting the requirements of sections 
                                401(k)(2)(B)(i), 403(b)(7)(A)(ii), 
                                403(b)(11), and 457(d)(1)(A).''.
    (b) Effective Date.--The amendments made by this section shall 
apply to distributions made after December 31, 2018.

       TITLE III--REPEAL OR DELAY OF CERTAIN HEALTH-RELATED TAXES

SEC. 301. EXTENSION OF MORATORIUM ON MEDICAL DEVICE EXCISE TAX.

    Section 4191(c) of the Internal Revenue Code of 1986 is amended by 
striking ``December 31, 2019'' and inserting ``December 31, 2024''.

SEC. 302. DELAY IN IMPLEMENTATION OF EXCISE TAX ON HIGH COST EMPLOYER-
              SPONSORED HEALTH COVERAGE.

    Section 9001(c) of the Patient Protection and Affordable Care Act 
is amended by striking ``December 31, 2021'' and inserting ``December 
31, 2022''.

SEC. 303. EXTENSION OF SUSPENSION OF ANNUAL FEE ON HEALTH INSURANCE 
              PROVIDERS.

    Section 9010(j)(3) of the Patient Protection and Affordable Care 
Act is amended by striking ``December 31, 2019'' and inserting 
``December 31, 2021''.

SEC. 304. REPEAL OF EXCISE TAX ON INDOOR TANNING SERVICES.

    (a) In General.--Subtitle D of the Internal Revenue Code of 1986 is 
amended by striking chapter 49 and by striking the item relating to 
such chapter in the table of chapters of such subtitle.
    (b) Effective Date.--The amendments made by this section shall 
apply to services performed in calendar quarters beginning more than 30 
days after the date of the enactment of this Act.

                 TITLE IV--CERTAIN EXPIRING PROVISIONS

SEC. 401. RAILROAD TRACK MAINTENANCE CREDIT MADE PERMANENT.

    (a) Credit Percentage Reduced.--Section 45G(a) is amended by 
striking ``50 percent'' and inserting ``30 percent''.
    (b) Made Permanent.--Section 45G is amended by striking subsection 
(f).
    (c) Effective Date.--The amendments made by this section shall 
apply to expenditures paid or incurred during taxable years beginning 
after December 31, 2017.

SEC. 402. BIODIESEL AND RENEWABLE DIESEL PROVISIONS EXTENDED AND PHASED 
              OUT.

    (a) Income Tax Credit.--
            (1) In general.--Section 40A(g) is amended to read as 
        follows:
    ``(g) Phase Out; Termination.--
            ``(1) Phase out.--In the case of any sale or use after 
        December 31, 2021, subsections (b)(1)(A) and (b)(2)(A) shall be 
        applied by substituting for `$1.00'--
                    ``(A) `$.75', if such sale or use is before January 
                1, 2023,
                    ``(B) `$.50', if such sale or use is after December 
                31, 2022, and before January 1, 2024, and
                    ``(C) `$.33', if such sale or use is after December 
                31, 2023, and before January 1, 2025.
            ``(2) Termination.--This section shall not apply to any 
        sale or use after December 31, 2024.''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to fuel sold or used after December 31, 2017.
    (b) Excise Tax Incentives.--
            (1) Phase out.--Section 6426(c)(2) is amended to read as 
        follows:
            ``(2) Applicable amount.--For purposes of this subsection, 
        the applicable amount is--
                    ``(A) $1.00 in the case of any sale or use for any 
                period before January 1, 2022,
                    ``(B) $.75 in the case of any sale or use for any 
                period after December 31, 2021, and before January 1, 
                2023,
                    ``(C) $.50 in the case of any sale or use for any 
                period after December 31, 2022, and before January 1, 
                2024, and
                    ``(D) $.33 in the case of any sale or use for any 
                period after December 31, 2023, and before January 1, 
                2025.''.
            (2) Termination.--
                    (A) In general.--Section 6426(c)(6) is amended by 
                striking ``December 31, 2017'' and inserting ``December 
                31, 2024''.
                    (B) Payments.--Section 6427(e)(6)(B) is amended by 
                striking ``December 31, 2017'' and inserting ``December 
                31, 2024''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to fuel sold or used after December 31, 2017.
            (4) Special rule for 2018.--Notwithstanding any other 
        provision of law, in the case of any biodiesel mixture credit 
        properly determined under section 6426(c) of the Internal 
        Revenue Code of 1986 for the period beginning on January 1, 
        2018, and ending on December 31, 2018, such credit shall be 
        allowed, and any refund or payment attributable to such credit 
        (including any payment under section 6427(e) of such Code) 
        shall be made, only in such manner as the Secretary of the 
        Treasury (or the Secretary's delegate) shall provide. Such 
        Secretary shall issue guidance within 30 days after the date of 
        the enactment of this Act providing for a one-time submission 
        of claims covering periods described in the preceding sentence. 
        Such guidance shall provide for a 180-day period for the 
        submission of such claims (in such manner as prescribed by such 
        Secretary) to begin not later than 30 days after such guidance 
        is issued. Such claims shall be paid by such Secretary not 
        later than 60 days after receipt. If such Secretary has not 
        paid pursuant to a claim filed under this subsection within 60 
        days after the date of the filing of such claim, the claim 
        shall be paid with interest from such date determined by using 
        the overpayment rate and method under section 6621 of such 
        Code.

                       TITLE V--OTHER PROVISIONS

SEC. 501. TECHNICAL AMENDMENTS RELATING TO PUBLIC LAW 115-97.

    (a) Amendment Relating to Section 11011.--Section 852(b) is amended 
by adding at the end the following:
            ``(10) Treatment by shareholders of qualified reit 
        dividends and qualified publicly traded partnership income.--
                    ``(A) In general.--A shareholder of a regulated 
                investment company shall take into account for purposes 
                of section 199A(b)(1)(B)--
                            ``(i) as a qualified REIT dividend the 
                        amount which is reported by the company (in 
                        written statements furnished to its 
                        shareholders) as being attributable to 
                        qualified REIT dividends received by the 
                        company, and
                            ``(ii) as qualified publicly traded 
                        partnership income the amount which is reported 
                        by the company (in written statements furnished 
                        to its shareholders) as being attributable to 
                        qualified publicly traded partnership income of 
                        the company.
                    ``(B) Excess reported amounts.--Rules similar to 
                the rules of clauses (ii) and (iii) of paragraph (5)(A) 
                shall apply for purposes of this paragraph.
                    ``(C) Negative qualified publicly traded 
                partnership income required to be taken into account.--
                If the qualified publicly traded partnership income of 
                the company is less than zero, such income shall be 
                reported by the company under subparagraph (A)(ii).
                    ``(D) Regulations.--The Secretary shall issue such 
                regulations or other guidance as may be necessary or 
                appropriate to carry out the purposes of this 
                paragraph.''.
    (b) Amendments Relating to Section 13204.--
            (1) Section 168(e)(3)(E) is amended by striking ``and'' at 
        the end of clause (v), by striking the period at the end of 
        clause (vi) and inserting ``, and'', and by adding at the end 
        the following new clause:
                            ``(vii) any qualified improvement 
                        property.''.
            (2) The table contained in subparagraph (B) of section 
        168(g)(3) is amended--
                    (A) by striking the item relating to subparagraph 
                (D)(v), and
                    (B) by inserting after the item relating to 
                subparagraph (E)(vi) the following new item:
    ``(E)(vii).....................
                                        20''.
    (c) Amendment Relating to Section 13302.--Section 13302(e)(2) of 
Public Law 115-97 is amended by striking ``ending'' and inserting 
``beginning''.
    (d) Amendment Relating to Section 13307.--Section 162(q)(2) is 
amended by inserting ``in the case of the taxpayer for whom a deduction 
is disallowed by reason of paragraph (1),'' before ``attorney's fees''.
    (e) Amendment Relating to Section 14103.--
            (1) In general.--Section 965(h) is amended by adding at the 
        end the following new paragraph:
            ``(7) Installments not to prevent credit or refund of 
        overpayments or increase estimated taxes.--If an election is 
        made under paragraph (1) to pay the net tax liability under 
        this section in installments--
                    ``(A) no installment of such net tax liability 
                shall--
                            ``(i) in the case of a request for credit 
                        or refund, be taken into account as a liability 
                        for purposes of determining whether an 
                        overpayment exists for purposes of section 6402 
                        before the date on which such installment is 
                        due, or
                            ``(ii) for purposes of sections 6425, 6654, 
                        and 6655, be treated as a tax imposed by 
                        section 1, section 11, or subchapter L of 
                        chapter 1, and
                    ``(B) the first sentence of section 6403 shall not 
                apply with respect to any such installment.''.
            (2) Limitation on payment of interest.--In the case of the 
        portion of any overpayment which exists by reason of the 
        application of section 965(h)(7) of the Internal Revenue Code 
        of 1986 (as added by this subsection)--
                    (A) if credit or refund of such portion is made on 
                or before the date which is 45 days after the date of 
                the enactment of this Act, no interest shall be allowed 
                or paid under section 6611 of such Code with respect to 
                such portion, and
                    (B) if credit or refund of such portion is made 
                after the date which is 45 days after the date of the 
                enactment of this Act, no interest shall be allowed or 
                paid under section 6611 of such Code with respect to 
                such portion for any period before the date of the 
                enactment of this Act.
    (f) Amendments Relating to Section 14213.--
            (1) Section 958(b) is amended--
                    (A) by inserting after paragraph (3) the following:
            ``(4) Subparagraphs (A), (B), and (C) of section 318(a)(3) 
        shall not be applied so as to consider a United States person 
        as owning stock which is owned by a person who is not a United 
        States person.'', and
                    (B) by striking ``Paragraph (1)'' in the last 
                sentence and inserting ``Paragraphs (1) and (4)''.
            (2) Subpart F of part III of subchapter N of chapter 1 is 
        amended by inserting after section 951A the following new 
        section:

``SEC. 951B. AMOUNTS INCLUDED IN GROSS INCOME OF FOREIGN CONTROLLED 
              UNITED STATES SHAREHOLDERS.

    ``(a) In General.--In the case of any foreign controlled United 
States shareholder of a foreign controlled foreign corporation--
            ``(1) this subpart (other than sections 951A, 951(b), 957, 
        and 965) shall be applied with respect to such shareholder 
        (separately from, and in addition to, the application of this 
        subpart without regard to this section)--
                    ``(A) by substituting `foreign controlled United 
                States shareholder' for `United States shareholder' 
                each place it appears therein, and
                    ``(B) by substituting `foreign controlled foreign 
                corporation' for `controlled foreign corporation' each 
                place it appears therein, and
            ``(2) sections 951A and 965 shall be applied with respect 
        to such shareholder --
                    ``(A) by treating each reference to `United States 
                shareholder' in such sections as including a reference 
                to such shareholder, and
                    ``(B) by treating each reference to `controlled 
                foreign corporation' in such sections as including a 
                reference to such foreign controlled foreign 
                corporation.
    ``(b) Foreign Controlled United States Shareholder.--For purposes 
of this section, the term `foreign controlled United States 
shareholder' means, with respect to any foreign corporation, any United 
States person which would be a United States shareholder with respect 
to such foreign corporation if--
            ``(1) section 951(b) were applied by substituting `more 
        than 50 percent' for `10 percent or more', and
            ``(2) section 958(b) were applied without regard to 
        paragraph (4) thereof.
    ``(c) Foreign Controlled Foreign Corporation.--For purposes of this 
section, the term `foreign controlled foreign corporation' means a 
foreign corporation, other than a controlled foreign corporation, which 
would be a controlled foreign corporation if section 957(a) were 
applied--
            ``(1) by substituting `foreign controlled United States 
        shareholders' for `United States shareholders', and
            ``(2) by substituting `section 958(b) (other than paragraph 
        (4) thereof)' for `section 958(b)'.
    ``(d) Regulations.--The Secretary shall prescribe such regulations 
or other guidance as may be necessary or appropriate to carry out the 
purposes of this section, including regulations or other guidance--
            ``(1) to treat a foreign controlled United States 
        shareholder or a foreign controlled foreign corporation as a 
        United States shareholder or as a controlled foreign 
        corporation, respectively, for purposes of provisions of this 
        title other than this subpart, and
            ``(2) to prevent the avoidance of the purposes of this 
        section.''.
            (3) The amendments made by paragraphs (1) and (2) shall 
        apply to--
                    (A) the last taxable year of foreign corporations 
                beginning before January 1, 2018, and each subsequent 
                taxable year of such foreign corporations, and
                    (B) taxable years of United States persons in which 
                or with which such taxable years of foreign 
                corporations end.
    (g) Effective Dates.--Except as otherwise provided in this section, 
the amendments made by this section shall take effect as if included in 
the provision of Public Law 115-97 to which they relate.

SEC. 502. CLARIFICATION OF TREATMENT OF VETERANS AS SPECIFIED GROUP FOR 
              PURPOSES OF THE LOW-INCOME HOUSING TAX CREDIT.

    For purposes of section 42(g)(9)(B) of the Internal Revenue Code of 
1986, veterans shall not fail to be treated as a specified group under 
a Federal program.

SEC. 503. CLARIFICATION OF GENERAL PUBLIC USE REQUIREMENT FOR QUALIFIED 
              RESIDENTIAL RENTAL PROJECTS.

    (a) In General.--Section 142(d)(2) is amended by adding at the end 
the following new subparagraph:
            ``(F) Clarification of general public use requirement.--
        Rules similar to the rules of section 42(g)(9) shall apply for 
        purposes of this subsection.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to bonds issued before, on, or after the date of enactment of this Act.

SEC. 504. FLOOR PLAN FINANCING APPLICABLE TO CERTAIN TRAILERS AND 
              CAMPERS.

    (a) In General.--Section 163(j)(9)(C) is amended by adding at the 
end the following new flush sentence:
                ``Such term shall include any trailer or camper which 
                is designed to provide temporary living quarters for 
                recreational, camping, travel, or seasonal use and is 
                designed to be towed by, or affixed to, a motor 
                vehicle.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2017.

SEC. 505. REPEAL OF INCREASE IN UNRELATED BUSINESS TAXABLE INCOME BY 
              DISALLOWED FRINGE.

    (a) In General.--Section 512(a) is amended by striking paragraph 
(7).
    (b) Effective Date.--The amendment made by this section shall take 
effect as if included in section 13703 of Public Law 115-97.

SEC. 506. CERTAIN PURCHASES OF EMPLOYEE-OWNED STOCK DISREGARDED FOR 
              PURPOSES OF FOUNDATION TAX ON EXCESS BUSINESS HOLDINGS.

    (a) In General.--Section 4943(c)(4)(A) is amended by adding at the 
end the following new clause:
                            ``(v) Certain purchases of employee-owned 
                        stock disregarded.--For purposes of clause (i), 
                        subparagraph (D), and paragraph (2), any voting 
                        stock which--
                                    ``(I) is not readily tradable on an 
                                established securities market,
                                    ``(II) is purchased by the business 
                                enterprise on or after January 1, 2005, 
                                from a stock bonus or profit sharing 
                                plan described in section 401(a) in 
                                which employees of such business 
                                enterprise participate, in connection 
                                with a distribution from such plan, and
                                    ``(III) is held by the business 
                                enterprise as treasury stock, 
                                cancelled, or retired,
                        shall be treated as outstanding voting stock, 
                        but only to the extent so treating such stock 
                        would not result in permitted holdings 
                        exceeding 49 percent (determined without regard 
                        to this clause). The preceding sentence shall 
                        not apply with respect to the purchase of stock 
                        from a plan during the 10-year period beginning 
                        on the date the plan is established.''
    (b) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to taxable years ending after the date of enactment of 
        this Act and to purchases by a business enterprise of voting 
        stock in taxable years beginning before, on, or after the date 
        of enactment of this Act.
            (2) Special rule for grandfathered foundations in case of 
        decrease in ownership by reason of pre-enactment purchases.--
        Section 4943(c)(4)(A)(ii) of the Internal Revenue Code of 1986 
        shall not apply with respect to any decrease in the percentage 
        of holdings in a business enterprise by reason of section 
        4943(c)(4)(A)(v) of such Code (as added by this section).

SEC. 507. ALLOWING 501(C)(3) ORGANIZATION TO MAKE STATEMENTS RELATING 
              TO POLITICAL CAMPAIGN IN ORDINARY COURSE OF CARRYING OUT 
              ITS TAX EXEMPT PURPOSE.

    (a) In General.--Section 501 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
    ``(s) Special Rule Relating to Political Campaign Statements of 
Organization Described in Subsection (c)(3).--
            ``(1) In general.--For purposes of subsection (c)(3) and 
        sections 170(c)(2), 2055, 2106, 2522, and 4955, an organization 
        shall not fail to be treated as organized and operated 
        exclusively for a purpose described in subsection (c)(3), nor 
        shall it be deemed to have participated in, or intervened in 
        any political campaign on behalf of (or in opposition to) any 
        candidate for public office, solely because of the content of 
        any statement which--
                    ``(A) is made in the ordinary course of the 
                organization's regular and customary activities in 
                carrying out its exempt purpose, and
                    ``(B) results in the organization incurring not 
                more than de minimis incremental expenses.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after the date of the enactment of this 
Act.

SEC. 508. CHARITABLE ORGANIZATIONS PERMITTED TO MAKE COLLEGIATE HOUSING 
              AND INFRASTRUCTURE GRANTS.

    (a) In General.--Section 501, as amended by the preceding 
provisions of this Act, is amended by adding at the end the following 
new subsection:
    ``(t) Treatment of Organizations Making Collegiate Housing and 
Infrastructure Improvement Grants.--
            ``(1) In general.--For purposes of subsection (c)(3) and 
        sections 170(c)(2)(B), 2055(a)(2), and 2522(a)(2), an 
        organization shall not fail to be treated as organized and 
        operated exclusively for charitable or educational purposes 
        solely because such organization makes collegiate housing and 
        infrastructure grants to an organization described in 
        subsection (c)(7) which applies the grant to its collegiate 
        housing property.
            ``(2) Housing and infrastructure grants.--For purposes of 
        paragraph (1), collegiate housing and infrastructure grants are 
        grants to provide, improve, operate, or maintain collegiate 
        housing property that may involve more than incidental social, 
        recreational, or private purposes, so long as such grants are 
        for purposes that would be permissible for a dormitory or other 
        residential facility of the college or university with which 
        the collegiate housing property is associated. A grant shall 
        not be treated as a collegiate housing and infrastructure grant 
        for purposes of paragraph (1) to the extent that such grant is 
        used to provide physical fitness facilities.
            ``(3) Collegiate housing property.--For purposes of this 
        subsection, collegiate housing property is property in which, 
        at the time of a grant or following the acquisition, lease, 
        construction, or modification of such property using such 
        grant, substantially all of the residents are full-time 
        students at the college or university in the community where 
        such property is located.
            ``(4) Grants to certain organizations holding title to 
        property, etc.--For purposes of this subsection, a collegiate 
        housing and infrastructure grant to an organization described 
        in subsection (c)(2) or (c)(7) holding title to property 
        exclusively for the benefit of an organization described in 
        subsection (c)(7) shall be considered a grant to the 
        organization described in subsection (c)(7) for whose benefit 
        such property is held.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to grants made in taxable years ending after the date of the enactment 
of this Act.

SEC. 509. RESTRICTION ON REGULATION OF CONTINGENCY FEES WITH RESPECT TO 
              TAX RETURNS, ETC.

    The Secretary of the Treasury may not regulate, prohibit, or 
restrict the use of a contingent fee in connection with tax returns, 
claims for refund, or documents in connection with tax returns or 
claims for refund prepared on behalf of a taxpayer.

                 DIVISION B--TAXPAYER FIRST ACT OF 2018

SECTION 1. SHORT TITLE; ETC.

    (a) Short Title.--This division may be cited as the ``Taxpayer 
First Act of 2018''.
    (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this division 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 for this division is 
as follows:

Sec. 1. Short title; etc.

                    TITLE I--PUTTING TAXPAYERS FIRST

                Subtitle A--Independent Appeals Process

Sec. 1001. Establishment of Internal Revenue Service Independent Office 
                            of Appeals.

                      Subtitle B--Improved Service

Sec. 1101. Comprehensive customer service strategy.
Sec. 1102. IRS Free File Program.
Sec. 1103. Low-income exception for payments otherwise required in 
                            connection with a submission of an offer-
                            in-compromise.

                    Subtitle C--Sensible Enforcement

Sec. 1201. Internal Revenue Service seizure requirements with respect 
                            to structuring transactions.
Sec. 1202. Exclusion of interest received in action to recover property 
                            seized by the Internal Revenue Service 
                            based on structuring transaction.
Sec. 1203. Clarification of equitable relief from joint liability.
Sec. 1204. Modification of procedures for issuance of third-party 
                            summons.
Sec. 1205. Private debt collection and special compliance personnel 
                            program.
Sec. 1206. Reform of notice of contact of third parties.
Sec. 1207. Modification of authority to issue designated summons.
Sec. 1208. Limitation on access of non-Internal Revenue Service 
                            employees to returns and return 
                            information.

                Subtitle D--Organizational Modernization

Sec. 1301. Office of the National Taxpayer Advocate.
Sec. 1302. Modernization of Internal Revenue Service organizational 
                            structure.

                      Subtitle E--Other Provisions

Sec. 1401. Return preparation programs for applicable taxpayers.
Sec. 1402. Provision of information regarding low-income taxpayer 
                            clinics.
Sec. 1403. Notice from IRS regarding closure of taxpayer assistance 
                            centers.
Sec. 1404. Rules for seizure and sale of perishable goods restricted to 
                            only perishable goods.
Sec. 1405. Whistleblower reforms.
Sec. 1406. Customer service information.
Sec. 1407. Misdirected tax refund deposits.

                       TITLE II--21ST CENTURY IRS

           Subtitle A--Cybersecurity and Identity Protection

Sec. 2001. Public-private partnership to address identity theft refund 
                            fraud.
Sec. 2002. Recommendations of Electronic Tax Administration Advisory 
                            Committee regarding identity theft refund 
                            fraud.
Sec. 2003. Information sharing and analysis center.
Sec. 2004. Compliance by contractors with confidentiality safeguards.
Sec. 2005. Report on electronic payments.
Sec. 2006. Identity protection personal identification numbers.
Sec. 2007. Single point of contact for tax-related identity theft 
                            victims.
Sec. 2008. Notification of suspected identity theft.
Sec. 2009. Guidelines for stolen identity refund fraud cases.
Sec. 2010. Increased penalty for improper disclosure or use of 
                            information by preparers of returns.

           Subtitle B--Development of Information Technology

Sec. 2101. Management of Internal Revenue Service information 
                            technology.
Sec. 2102. Development of online accounts and portals.
Sec. 2103. Internet platform for Form 1099 filings.
Sec. 2104. Streamlined critical pay authority for information 
                            technology positions.

 Subtitle C--Modernization of Consent-based Income Verification System

Sec. 2201. Disclosure of taxpayer information for third-party income 
                            verification.
Sec. 2202. Limit redisclosures and uses of consent-based disclosures of 
                            tax return information.

             Subtitle D--Expanded Use of Electronic Systems

Sec. 2301. Electronic filing of returns.
Sec. 2302. Uniform standards for the use of electronic signatures for 
                            disclosure authorizations to, and other 
                            authorizations of, practitioners.
Sec. 2303. Payment of taxes by debit and credit cards.
Sec. 2304. Requirement that electronically prepared paper returns 
                            include scannable code.
Sec. 2305. Authentication of users of electronic services accounts.

                      Subtitle E--Other Provisions

Sec. 2401. Repeal of provision regarding certain tax compliance 
                            procedures and reports.
Sec. 2402. Comprehensive training strategy.

                  TITLE III--MISCELLANEOUS PROVISIONS

Subtitle A--Reform of Laws Governing Internal Revenue Service Employees

Sec. 3001. Electronic record retention.
Sec. 3002. Prohibition on rehiring any employee of the Internal Revenue 
                            Service who was involuntarily separated 
                            from service for misconduct.
Sec. 3003. Notification of unauthorized inspection or disclosure of 
                            returns and return information.

        Subtitle B--Provisions Relating to Exempt Organizations

Sec. 3101. Mandatory e-filing by exempt organizations.
Sec. 3102. Notice required before revocation of tax exempt status for 
                            failure to file return.

                         Subtitle C--Tax Court

Sec. 3301. Disqualification of judge or magistrate judge of the Tax 
                            Court.
Sec. 3302. Opinions and judgments.
Sec. 3303. Title of special trial judge changed to magistrate judge of 
                            the Tax Court.
Sec. 3304. Repeal of deadwood related to Board of Tax Appeals.

                    TITLE I--PUTTING TAXPAYERS FIRST

                Subtitle A--Independent Appeals Process

SEC. 1001. 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 Commissioner 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 Commissioner 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 a notice of deficiency authorized under 
                section 6212 requests referral to the Internal Revenue 
                Service Independent Office of Appeals and such request 
                is denied, the Commissioner 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 prescribed 
                        under subparagraph (C) for protesting the 
                        decision to deny the request.
                    ``(B) Report to congress.--The Commissioner 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 Commissioner of the Internal Revenue 
                Service shall prescribe procedures for protesting to 
                the Commissioner of the Internal Revenue Service 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 any case in which a 
                conference with the Internal Revenue Service 
                Independent Office of Appeals has been scheduled upon 
                request of a specified taxpayer, 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 for the taxable year to 
                                which the dispute relates, and
                                    ``(II) in the case of any other 
                                taxpayer, a taxpayer whose gross 
                                receipts do not exceed $5,000,000 for 
                                the taxable year to which the dispute 
                                relates.
                            ``(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.

                      Subtitle B--Improved Service

SEC. 1101. 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 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 (or the Secretary's delegate) 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. 1102. 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. 1103. 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.

                    Subtitle C--Sensible Enforcement

SEC. 1201. 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 so 
                                found 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 an ownership 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. 1202. 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. 139H. 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. 139H. 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. 1203. 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. 1204. 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. 1205. PRIVATE DEBT COLLECTION AND SPECIAL COMPLIANCE PERSONNEL 
              PROGRAM.

    (a) Certain Tax Receivables Not Eligible for Collection Under Tax 
Collection Contracts.--Section 6306(d)(3) is amended by striking ``or'' 
at the end of subparagraph (C) and by inserting after subparagraph (D) 
the following new subparagraphs:
                    ``(E) a taxpayer substantially all of whose income 
                consists of disability insurance benefits under section 
                223 of the Social Security Act or supplemental security 
                income benefits under title XVI of the Social Security 
                Act (including supplemental security income benefits of 
                the type described in section 1616 of such Act or 
                section 212 of Public Law 93-66), or
                    ``(F) 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 200 percent of the applicable poverty 
                level (as determined by the Secretary).''.
    (b) Determination of Inactive Tax Receivables Eligible for 
Collection Under Tax Collection Contracts.--Section 6306(c)(2)(A)(ii) 
is amended by striking ``more than \1/3\ of the period of the 
applicable statute of limitation has lapsed'' and inserting ``more than 
2 years has passed since assessment''.
    (c) Maximum Length of Installment Agreements Offered Under Tax 
Collection Contracts.--Section 6306(b)(1)(B) is amended by striking ``5 
years'' and inserting ``7 years''.
    (d) Clarification That Special Compliance Personnel Program Account 
May Be Used for Program Costs.--
            (1) In general.--Section 6307(b) is amended--
                    (A) in paragraph (2), by striking all that follows 
                ``under such program'' and inserting a period, and
                    (B) in paragraph (3), by striking all that follows 
                ``out of such account'' and inserting ``for other than 
                program costs''.
            (2) Communications, software, and technology costs treated 
        as program costs.--Section 6307(d)(2)(B) is amended by striking 
        ``telecommunications'' and inserting ``communications, 
        software, technology''.
            (3) Conforming amendment.--Section 6307(d)(2) is amended by 
        striking ``and'' at the end of subparagraph (A), by striking 
        the period at the end of subparagraph (B) and inserting ``, 
        and'', and by inserting after subparagraph (B) the following 
        new subparagraph:
                    ``(C) reimbursement of the Internal Revenue Service 
                or other government agencies for the cost of 
                administering the qualified tax collection program 
                under section 6306.''.
    (e) Effective Dates.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply to 
        tax receivables identified by the Secretary (or the Secretary's 
        delegate) after December 31, 2019.
            (2) Maximum length of installment agreements.--The 
        amendment made by subsection (c) shall apply to contracts 
        entered into after the date of the enactment of this Act.
            (3) Use of special compliance personnel program account.--
        The amendment made by subsection (d) shall apply to amounts 
        expended from the special compliance personnel program account 
        after the date of the enactment of this Act.

SEC. 1206. 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. 1207. MODIFICATION OF AUTHORITY TO ISSUE DESIGNATED SUMMONS.

    (a) In General.--Paragraph (1) of section 6503(j) is amended by 
striking ``coordinated examination program'' and inserting 
``coordinated industry case program''.
    (b) Requirements for Summons.--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 Commissioner 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,''.
    (c) 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.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to summonses issued after the date of the enactment of this Act.

SEC. 1208. 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.--The amendment made by this section--
            (1) shall take effect on the date of the enactment of this 
        Act, and
            (2) shall not fail to apply to a contract in effect under 
        section 6103(n) of the Internal Revenue Code of 1986 merely 
        because such contract was in effect before the date of the 
        enactment of this Act.

                Subtitle D--Organizational Modernization

SEC. 1301. 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 
        Commissioner of the Internal Revenue Service--
                    ``(A) the Commissioner or a Deputy Commissioner 
                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 Commissioner, the 
                National Taxpayer Advocate may (not later than 90 days 
                after such modification or rescission) appeal to the 
                Commissioner and the Commissioner 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 
                Commissioner 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 of 
        the'' 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. 1302. MODERNIZATION OF INTERNAL REVENUE SERVICE ORGANIZATIONAL 
              STRUCTURE.

    (a) In General.--Not later than September 30, 2020, the 
Commissioner 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 
        Commissioner.
    (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 Commissioner of the 
Internal Revenue Service submits to Congress the plan described in 
subsection (a).

                      Subtitle E--Other Provisions

SEC. 1401. RETURN PREPARATION PROGRAMS FOR APPLICABLE TAXPAYERS.

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

``SEC. 7526A. RETURN PREPARATION PROGRAMS FOR APPLICABLE 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 applicable 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 applicable 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 applicable 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 applicable 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) Applicable taxpayers.--The term `applicable 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 
        three 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 is 
amended by inserting after the item relating to section 7526 the 
following new item:

``Sec. 7526A. Return preparation programs for applicable taxpayers.''.

SEC. 1402. 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 one or more specific 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.

SEC. 1403. 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.

SEC. 1404. 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.

SEC. 1405. WHISTLEBLOWER REFORMS.

    (a) Modifications to Disclosure Rules for Whistleblowers.--
            (1) In general.--Section 6103(k) is amended by adding at 
        the end the following new paragraph:
            ``(13) Disclosure to whistleblowers.--
                    ``(A) In general.--The Secretary may disclose, to 
                any individual providing information relating to any 
                purpose described in paragraph (1) or (2) of section 
                7623(a), return information related to the 
                investigation of any taxpayer with respect to whom the 
                individual has provided such information, but only to 
                the extent that such disclosure is necessary in 
                obtaining information, which is not otherwise 
                reasonably available, with respect to the correct 
                determination of tax liability for tax, or the amount 
                to be collected with respect to the enforcement of any 
                other provision of this title.
                    ``(B) Updates on whistleblower investigations.--The 
                Secretary shall disclose to an individual providing 
                information relating to any purpose described in 
                paragraph (1) or (2) of section 7623(a) the following:
                            ``(i) Not later than 60 days after a case 
                        for which the individual has provided 
                        information has been referred for an audit or 
                        examination, a notice with respect to such 
                        referral.
                            ``(ii) Not later than 60 days after a 
                        taxpayer with respect to whom the individual 
                        has provided information has made a payment of 
                        tax with respect to tax liability to which such 
                        information relates, a notice with respect to 
                        such payment.
                            ``(iii) Subject to such requirements and 
                        conditions as are prescribed by the Secretary, 
                        upon a written request by such individual--
                                    ``(I) information on the status and 
                                stage of any investigation or action 
                                related to such information, and
                                    ``(II) in the case of a 
                                determination of the amount of any 
                                award under section 7623(b), the 
                                reasons for such determination.
                Clause (iii) shall not apply to any information if the 
                Secretary determines that disclosure of such 
                information would seriously impair Federal tax 
                administration. Information described in clauses (i), 
                (ii), and (iii) may be disclosed to a designee of the 
                individual providing such information in accordance 
                with guidance provided by the Secretary.''.
            (2) Conforming amendments.--
                    (A) Confidentiality of information.--Section 
                6103(a)(3) is amended by striking ``subsection 
                (k)(10)'' and inserting ``paragraph (10) or (13) of 
                subsection (k)''.
                    (B) Penalty for unauthorized disclosure.--Section 
                7213(a)(2) is amended by striking ``(k)(10)'' and 
                inserting ``(k)(10) or (13)''.
                    (C) Coordination with authority to disclose for 
                investigative purposes.--Section 6103(k)(6) is amended 
                by adding at the end the following new sentence: ``This 
                paragraph shall not apply to any disclosure to an 
                individual providing information relating to any 
                purpose described in paragraph (1) or (2) of section 
                7623(a) which is made under paragraph (13)(A).''.
    (b) Protection Against Retaliation.--Section 7623 is amended by 
adding at the end the following new subsection:
    ``(d) Civil Action To Protect Against Retaliation Cases.--
            ``(1) Anti-retaliation whistleblower protection for 
        employees.--No employer, or any officer, employee, contractor, 
        subcontractor, or agent of such employer, may discharge, 
        demote, suspend, threaten, harass, or in any other manner 
        discriminate against an employee in the terms and conditions of 
        employment (including through an act in the ordinary course of 
        such employee's duties) in reprisal for any lawful act done by 
        the employee--
                    ``(A) to provide information, cause information to 
                be provided, or otherwise assist in an investigation 
                regarding underpayment of tax or any conduct which the 
                employee reasonably believes constitutes a violation of 
                the internal revenue laws or any provision of Federal 
                law relating to tax fraud, when the information or 
                assistance is provided to the Internal Revenue Service, 
                the Secretary of Treasury, the Treasury Inspector 
                General for Tax Administration, the Comptroller General 
                of the United States, the Department of Justice, the 
                United States Congress, a person with supervisory 
                authority over the employee, or any other person 
                working for the employer who has the authority to 
                investigate, discover, or terminate misconduct, or
                    ``(B) to testify, participate in, or otherwise 
                assist in any administrative or judicial action taken 
                by the Internal Revenue Service relating to an alleged 
                underpayment of tax or any violation of the internal 
                revenue laws or any provision of Federal law relating 
                to tax fraud.
            ``(2) Enforcement action.--
                    ``(A) In general.--A person who alleges discharge 
                or other reprisal by any person in violation of 
                paragraph (1) may seek relief under paragraph (3) by--
                            ``(i) filing a complaint with the Secretary 
                        of Labor, or
                            ``(ii) if the Secretary of Labor has not 
                        issued a final decision within 180 days of the 
                        filing of the complaint and there is no showing 
                        that such delay is due to the bad faith of the 
                        claimant, bringing an action at law or equity 
                        for de novo review in the appropriate district 
                        court of the United States, which shall have 
                        jurisdiction over such an action without regard 
                        to the amount in controversy.
                    ``(B) Procedure.--
                            ``(i) In general.--An action under 
                        subparagraph (A)(i) shall be governed under the 
                        rules and procedures set forth in section 
                        42121(b) of title 49, United States Code.
                            ``(ii) Exception.--Notification made under 
                        section 42121(b)(1) of title 49, United States 
                        Code, shall be made to the person named in the 
                        complaint and to the employer.
                            ``(iii) Burdens of proof.--An action 
                        brought under subparagraph (A)(ii) shall be 
                        governed by the legal burdens of proof set 
                        forth in section 42121(b) of title 49, United 
                        States Code, except that in applying such 
                        section--
                                    ``(I) `behavior described in 
                                paragraph (1)' shall be substituted for 
                                `behavior described in paragraphs (1) 
                                through (4) of subsection (a)' each 
                                place it appears in paragraph (2)(B) 
                                thereof, and
                                    ``(II) `a violation of paragraph 
                                (1)' shall be substituted for `a 
                                violation of subsection (a)' each place 
                                it appears.
                            ``(iv) Statute of limitations.--A complaint 
                        under subparagraph (A)(i) shall be filed not 
                        later than 180 days after the date on which the 
                        violation occurs.
                            ``(v) Jury trial.--A party to an action 
                        brought under subparagraph (A)(ii) shall be 
                        entitled to trial by jury.
            ``(3) Remedies.--
                    ``(A) In general.--An employee prevailing in any 
                action under paragraph (2)(A) shall be entitled to all 
                relief necessary to make the employee whole.
                    ``(B) Compensatory damages.--Relief for any action 
                under subparagraph (A) shall include--
                            ``(i) reinstatement with the same seniority 
                        status that the employee would have had, but 
                        for the reprisal,
                            ``(ii) the sum of 200 percent of the amount 
                        of back pay and 100 percent of all lost 
                        benefits, with interest, and
                            ``(iii) compensation for any special 
                        damages sustained as a result of the reprisal, 
                        including litigation costs, expert witness 
                        fees, and reasonable attorney fees.
            ``(4) Rights retained by employee.--Nothing in this section 
        shall be deemed to diminish the rights, privileges, or remedies 
        of any employee under any Federal or State law, or under any 
        collective bargaining agreement.
            ``(5) Nonenforceability of certain provisions waiving 
        rights and remedies or requiring arbitration of disputes.--
                    ``(A) Waiver of rights and remedies.--The rights 
                and remedies provided for in this subsection may not be 
                waived by any agreement, policy form, or condition of 
                employment, including by a predispute arbitration 
                agreement.
                    ``(B) Predispute arbitration agreements.--No 
                predispute arbitration agreement shall be valid or 
                enforceable, if the agreement requires arbitration of a 
                dispute arising under this subsection.''.
    (c) Effective Date.--
            (1) In general.--The amendments made by subsection (a) 
        shall apply to disclosures made after the date of the enactment 
        of this Act.
            (2) Civil protection.--The amendment made by subsection (b) 
        shall take effect on the date of the enactment of this Act.

SEC. 1406. CUSTOMER SERVICE INFORMATION.

    The Secretary of the Treasury (or the Secretary's delegate) shall 
provide helpful information to taxpayers placed on hold during a 
telephone call to any Internal Revenue Service help line, including the 
following:
            (1) Information about common tax scams.
            (2) Information on where and how to report tax scams.
            (3) Additional advice on how taxpayers can protect 
        themselves from identity theft and tax scams.

SEC. 1407. MISDIRECTED TAX REFUND DEPOSITS.

    Section 6402 is amended by adding at the end the following new 
subsection:
    ``(n) Misdirected Direct Deposit Refund.--Not later than the date 
which is 6 month after the date of the enactment of the Taxpayer First 
Act of 2018, the Secretary shall prescribe regulations to establish 
procedures to allow for--
            ``(1) taxpayers to report instances in which a refund made 
        by the Secretary by electronic funds transfer was erroneously 
        delivered to an account at a financial institution for which 
        the taxpayer is not the owner;
            ``(2) coordination with financial institutions for the 
        purpose of--
                    ``(A) identifying erroneous payments described in 
                paragraph (1); and
                    ``(B) recovery of the erroneously transferred 
                amounts; and
            ``(3) the refund to be delivered to the correct account of 
        the taxpayer.''.

                       TITLE II--21ST CENTURY IRS

           Subtitle A--Cybersecurity and Identity Protection

SEC. 2001. 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. 2002. 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. 2003. 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), as amended by this Act, 
        is amended by adding at the end the following new paragraph:
            ``(14) 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 2003(a) of the Taxpayer First 
                                Act of 2018, 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), as amended by this Act, is 
                amended by striking ``or (13)'' and inserting ``(13), 
                or (14)''.
                    (B) Section 7213(a)(2), as amended by this Act, is 
                amended by striking ``or (13)'' and inserting ``(13), 
                or (14)''.

SEC. 2004. 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 or 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. 2005. REPORT ON ELECTRONIC PAYMENTS.

    Not later than 2 years after the date of the enactment of this Act, 
the Secretary of the Treasury (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.

SEC. 2006. IDENTITY PROTECTION PERSONAL IDENTIFICATION NUMBERS.

    (a) In General.--Subject to subsection (b), 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.
    (b) Requirements.--
            (1) Annual expansion.--For each calendar year beginning 
        after the date of the enactment of this Act, the Secretary 
        shall provide numbers through the program described in 
        subsection (a) to individuals residing in such States as the 
        Secretary deems appropriate, provided that the total number of 
        States served by such program during such year is greater than 
        the total number of States served by such program during the 
        preceding year.
            (2) Nationwide availability.--Not later than 5 years after 
        the date of the enactment of this Act, the Secretary shall 
        ensure that the program described in subsection (a) is made 
        available to any individual residing in the United States.

SEC. 2007. 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.

SEC. 2008. NOTIFICATION OF SUSPECTED IDENTITY THEFT.

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

``SEC. 7529. NOTIFICATION OF SUSPECTED IDENTITY THEFT.

    ``(a) In General.--If the Secretary determines that there has been 
or may have been an unauthorized use of the identity of any individual, 
the Secretary shall, without jeopardizing an investigation relating to 
tax administration--
            ``(1) as soon as practicable, notify the individual of such 
        determination and provide--
                    ``(A) instructions on how to file a report with law 
                enforcement regarding the unauthorized use of the 
                identity of the individual,
                    ``(B) the identification of any forms necessary for 
                the individual to complete and submit to law 
                enforcement to permit access to personal information of 
                the individual during the investigation,
                    ``(C) information regarding actions the individual 
                may take in order to protect the individual from harm 
                relating to such unauthorized use, and
                    ``(D) an offer of identity protection measures to 
                be provided to the individual by the Internal Revenue 
                Service, such as the use of an identity protection 
                personal identification number, and
            ``(2) at the time the information described in paragraph 
        (1) is provided (or, if not available at such time, as soon as 
        practicable thereafter), issue additional notifications to such 
        individual (or such individual's designee) regarding--
                    ``(A) whether an investigation has been initiated 
                in regards to such unauthorized use,
                    ``(B) whether the investigation substantiated an 
                unauthorized use of the identity of the individual, and
                    ``(C) whether--
                            ``(i) any action has been taken against a 
                        person relating to such unauthorized use, or
                            ``(ii) any referral has been made for 
                        criminal prosecution of such person and, to the 
                        extent such information is available, whether 
                        such person has been criminally charged by 
                        indictment or information.
    ``(b) Employment-Related Identity Theft.--
            ``(1) In general.--For purposes of this section, the 
        unauthorized use of the identity of an individual includes the 
        unauthorized use of the identity of the individual to obtain 
        employment.
            ``(2) Determination of employment-related identity theft.--
        For purposes of this section, in making a determination as to 
        whether there has been or may have been an unauthorized use of 
        the identity of an individual to obtain employment, the 
        Secretary shall review any information--
                    ``(A) obtained from a statement described in 
                section 6051 or an information return relating to 
                compensation for services rendered other than as an 
                employee, or
                    ``(B) provided to the Internal Revenue Service by 
                the Social Security Administration regarding any 
                statement described in section 6051,
        which indicates that the social security account number 
        provided on such statement or information return does not 
        correspond with the name provided on such statement or 
        information return or the name on the tax return reporting the 
        income which is included on such statement or information 
        return.''.
    (b) Additional Measures.--
            (1) Examination of both paper and electronic statements and 
        returns.--The Secretary of the Treasury (or the Secretary's 
        delegate) shall examine the statements, information returns, 
        and tax returns described in section 7529(b)(2) of the Internal 
        Revenue Code of 1986 (as added by subsection (a)) for any 
        evidence of employment-related identity theft, regardless of 
        whether such statements or returns are submitted electronically 
        or on paper.
            (2) Improvement of effective return processing program with 
        social security administration.--Section 232 of the Social 
        Security Act (42 U.S.C. 432) is amended by inserting after the 
        third sentence the following: ``For purposes of carrying out 
        the return processing program described in the preceding 
        sentence, the Commissioner of Social Security shall request, 
        not less than annually, such information described in section 
        7529(b)(2) of the Internal Revenue Code of 1986 as may be 
        necessary to ensure the accuracy of the records maintained by 
        the Commissioner of Social Security related to the amounts of 
        wages paid to, and the amounts of self-employment income 
        derived by, individuals.''.
            (3) Underreporting of income.--The Secretary (or the 
        Secretary's delegate) shall establish procedures to ensure that 
        income reported in connection with the unauthorized use of a 
        taxpayer's identity is not taken into account in determining 
        any penalty for underreporting of income by the victim of 
        identity theft.
    (c) Clerical Amendment.--The table of sections for chapter 77 is 
amended by adding at the end the following new item:

``Sec. 7529. Notification of suspected identity theft.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to determinations made after the date that is 6 months after the 
date of the enactment of this Act.

SEC. 2009. GUIDELINES FOR STOLEN IDENTITY REFUND FRAUD CASES.

    (a) In General.--Not later than 1 year after the date of the 
enactment of this Act, the Secretary (or the Secretary's delegate), in 
consultation with the National Taxpayer Advocate, shall develop and 
implement publicly available guidelines for management of cases 
involving stolen identity refund fraud in a manner that reduces the 
administrative burden on taxpayers who are victims of such fraud.
    (b) Standards and Procedures To Be Considered.--The guidelines 
described in subsection (a) may include--
            (1) standards for--
                    (A) the average length of time in which a case 
                involving stolen identity refund fraud should be 
                resolved;
                    (B) the maximum length of time, on average, a 
                taxpayer who is a victim of stolen identity refund 
                fraud and is entitled to a tax refund which has been 
                stolen should have to wait to receive such refund; and
                    (C) the maximum number of offices and employees 
                within the Internal Revenue Service with whom a 
                taxpayer who is a victim of stolen identity refund 
                fraud should be required to interact in order to 
                resolve a case;
            (2) standards for opening, assigning, reassigning, or 
        closing a case involving stolen identity refund fraud; and
            (3) procedures for implementing and accomplishing the 
        standards described in paragraphs (1) and (2), and measures for 
        evaluating such procedures and determining whether such 
        standards have been successfully implemented.

SEC. 2010. INCREASED PENALTY FOR IMPROPER DISCLOSURE OR USE OF 
              INFORMATION BY PREPARERS OF RETURNS.

    (a) In General.--Section 6713 is amended--
            (1) by redesignating subsections (b) and (c) as subsections 
        (c) and (d), respectively; and
            (2) by inserting after subsection (a) the following new 
        subsection:
    ``(b) Enhanced Penalty for Improper Use or Disclosure Relating to 
Identity Theft.--
            ``(1) In general.--In the case of a disclosure or use 
        described in subsection (a) that is made in connection with a 
        crime relating to the misappropriation of another person's 
        taxpayer identity (as defined in section 6103(b)(6)), whether 
        or not such crime involves any tax filing, subsection (a) shall 
        be applied--
                    ``(A) by substituting `$1,000' for `$250', and
                    ``(B) by substituting `$50,000' for `$10,000'.
            ``(2) Separate application of total penalty limitation.--
        The limitation on the total amount of the penalty under 
        subsection (a) shall be applied separately with respect to 
        disclosures or uses to which this subsection applies and to 
        which it does not apply.''.
    (b) Criminal Penalty.--Section 7216(a) is amended by striking 
``$1,000'' and inserting ``$1,000 ($100,000 in the case of a disclosure 
or use to which section 6713(b) applies)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to disclosures or uses on or after the date of the enactment of 
this Act.

           Subtitle B--Development of Information Technology

SEC. 2101. MANAGEMENT OF INTERNAL REVENUE SERVICE INFORMATION 
              TECHNOLOGY.

    (a) Duties and Responsibilities of Internal Revenue Service Chief 
Information Officer.--Section 7803, as amended by section 1001, 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 Commissioner of the Internal Revenue 
        Service.
            ``(2) Centralized responsibility for internal revenue 
        service information technology.--The Commissioner 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 
        Commissioner 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 Commissioner 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 
                Commissioner 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. 2102. 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. 2103. 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.

SEC. 2104. STREAMLINED CRITICAL PAY AUTHORITY FOR INFORMATION 
              TECHNOLOGY POSITIONS.

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

``SEC. 7812. STREAMLINED CRITICAL PAY AUTHORITY FOR INFORMATION 
              TECHNOLOGY POSITIONS.

    ``In the case of any position which is critical to the 
functionality of the information technology operations of the Internal 
Revenue Service--
            ``(1) section 9503 of title 5, United States Code, shall be 
        applied--
                    ``(A) by substituting `during the period beginning 
                on the date of the enactment of section 7812 of the 
                Internal Revenue Code of 1986, and ending on September 
                30, 2023' for `Before September 30, 2013 in subsection 
                (a)',
                    ``(B) without regard to subparagraph (B) of 
                subsection (a)(1), and
                    ``(C) by substituting `the date of the enactment of 
                the Taxpayer First Act of 2018' for `June 1, 1998' in 
                subsection (a)(6),
            ``(2) section 9504 of such title 5 shall be applied by 
        substituting `During the period beginning on the date of the 
        enactment of section 7812 of the Internal Revenue Code of 1986, 
        and ending on September 30, 2023' for `Before September 30, 
        2013' each place it appears in subsections (a) and (b), and
            ``(3) section 9505 of such title shall be applied--
                    ``(A) by substituting `During the period beginning 
                on the date of the enactment of section 7812 of the 
                Internal Revenue Code of 1986, and ending on September 
                30, 2023' for `Before September 30, 2013' in subsection 
                (a), and
                    ``(B) by substituting `the information technology 
                operations' for `significant functions' in subsection 
                (a).''.
    (b) Clerical Amendment.--The table of sections for subchapter A of 
chapter 80 is amended by adding at the end the following new item:

``Sec. 7812. Streamlined critical pay authority for information 
                            technology positions.''.

 Subtitle C--Modernization of Consent-based Income Verification System

SEC. 2201. 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. 2202. 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.

             Subtitle D--Expanded Use of Electronic Systems

SEC. 2301. 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 striking 
paragraph (5) and inserting the following new paragraphs:
            ``(5) Applicable number.--
                    ``(A) In general.--For purposes of paragraph 
                (2)(A), the applicable number shall be--
                            ``(i) except as provided in subparagraph 
                        (B), in the case of calendar years before 2020, 
                        250,
                            ``(ii) in the case of calendar year 2020, 
                        100, and
                            ``(iii) in the case of calendar years after 
                        2020, 10.
                    ``(B) Special rule for partnerships for 2018 and 
                2019.--In the case of a partnership, for any calendar 
                year before 2020, the applicable number shall be--
                            ``(i) in the case of calendar year 2018, 
                        200, and
                            ``(ii) in the case of calendar year 2019, 
                        150.
            ``(6) Partnerships required to file on magnetic media.--
        Notwithstanding paragraph (2)(A), the Secretary shall require 
        partnerships having more than 100 partners to file returns on 
        magnetic media.''.
    (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. 2302. 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. 2303. 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.''.

SEC. 2304. REQUIREMENT THAT ELECTRONICALLY PREPARED PAPER RETURNS 
              INCLUDE SCANNABLE CODE.

    (a) In General.--Subsection (e) of section 6011, as amended by this 
Act, is amended by adding at the end the following new paragraph:
            ``(7) Special rule for returns prepared electronically and 
        submitted on paper.--The Secretary shall require that any 
        return of tax which is prepared electronically, but is printed 
        and filed on paper, bear a code which can, when scanned, 
        convert such return to electronic format.''.
    (b) Conforming Amendment.--Paragraph (1) of section 6011(e) is 
amended by striking ``paragraph (3)'' and inserting ``paragraphs (3) 
and (7)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to returns of tax the due date for which (determined without 
regard to extensions) is after December 31, 2020.

SEC. 2305. AUTHENTICATION OF USERS OF ELECTRONIC SERVICES ACCOUNTS.

    Beginning 180 days after the date of the enactment of this Act, the 
Secretary of the Treasury (or the Secretary's delegate) shall verify 
the identity of any individual opening an e-Services account with the 
Internal Revenue Service before such individual is able to use the e-
Services tools.

                      Subtitle E--Other Provisions

SEC. 2401. REPEAL OF PROVISION REGARDING CERTAIN TAX COMPLIANCE 
              PROCEDURES AND REPORTS.

    Section 2004 of the Internal Revenue Service Restructuring and 
Reform Act of 1998 (26 U.S.C. 6012 note) is repealed.

SEC. 2402. COMPREHENSIVE TRAINING STRATEGY.

    Not later than 1 year after the date of the enactment of this Act, 
the Commissioner of Internal Revenue shall submit to Congress a written 
report providing a comprehensive training strategy for employees of the 
Internal Revenue Service, including--
            (1) a plan to streamline current training processes, 
        including an assessment of the utility of further consolidating 
        internal training programs, technology, and funding,
            (2) a plan to develop annual training regarding taxpayer 
        rights, including the role of the Office of the Taxpayer 
        Advocate, for employees that interface with taxpayers and their 
        managers,
            (3) a plan to improve technology-based training,
            (4) proposals to--
                    (A) focus employee training on early, fair, and 
                efficient resolution of taxpayer disputes for employees 
                that interface with taxpayers and their managers, and
                    (B) ensure consistency of skill development and 
                employee evaluation throughout the Internal Revenue 
                Service, and
            (5) a thorough assessment of the funding necessary to 
        implement such strategy.

                  TITLE III--MISCELLANEOUS PROVISIONS

Subtitle A--Reform of Laws Governing Internal Revenue Service Employees

SEC. 3001. ELECTRONIC RECORD RETENTION.

    (a) Retention of Records.--
            (1) In general.--Email records of the Internal Revenue 
        Service shall be retained in an appropriate electronic system 
        that supports records management and litigation requirements, 
        including the capability to identify, retrieve, and retain the 
        records, in accordance with the requirements described in 
        paragraph (2).
            (2) Requirements.--
                    (A) Prior to certification.--The Commissioner of 
                Internal Revenue and the Chief Counsel for the Internal 
                Revenue Service shall retain all email records 
                generated on or after the date of the enactment of this 
                Act and before the date on which the Treasury Inspector 
                General for Tax Administration makes the certification 
                under subsection (c)(1).
                    (B) Principal officers and specified employees.--
                Not later than December 31, 2019, the Commissioner of 
                Internal Revenue and the Chief Counsel for the Internal 
                Revenue Service shall maintain email records of all 
                principal officers and specified employees of the 
                Internal Revenue Service for a period of not less than 
                15 years beginning on the date such record was 
                generated.
    (b) Transmission of Records to the National Archives.--Not later 
than 15 years after the date on which an email record of a principal 
officer or specified employee of the Internal Revenue Service is 
generated, the Commissioner of Internal Revenue and the Chief Counsel 
for the Internal Revenue Service shall transfer such email record to 
the Archivist of the United States.
    (c) Compliance.--
            (1) Certification.--On the date that the Treasury Inspector 
        General for Tax Administration determines that the Internal 
        Revenue Service has a program in place that complies with the 
        requirements of subsections (a)(2)(B) and (b), the Treasury 
        Inspector General for Tax Administration shall certify to the 
        Committee on Ways and Means of the House of Representatives and 
        the Committee on Finance of the Senate that the Internal 
        Revenue Service is in compliance with such requirements.
            (2) Reports.--
                    (A) Interim report.--Not later than December 31, 
                2019, the Treasury Inspector General for Tax 
                Administration shall submit a report to the Committee 
                on Ways and Means of the House of Representatives and 
                the Committee on Finance of the Senate on the steps 
                being taken by the Commissioner of Internal Revenue and 
                the Chief Counsel for the Internal Revenue Service to 
                comply with the requirements of subsections (a)(2)(B) 
                and (b).
                    (B) Final report.--Not later than April 1, 2020, 
                the Treasury Inspector General for Tax Administration 
                shall submit a report to the Committee on Ways and 
                Means of the House of Representatives and the Committee 
                on Finance of the Senate describing whether the 
                Internal Revenue Service is in compliance with the 
                requirements of subsections (a)(2)(B) and (b).
    (d) Definitions.--For purposes of this section--
            (1) Principal officer.--The term ``principal officer'' 
        means, with respect to the Internal Revenue Service--
                    (A) any employee whose position is listed under the 
                Internal Revenue Service in the most recent version of 
                the United States Government Manual published by the 
                Office of the Federal Register;
                    (B) any employee who is a senior staff member 
                reporting directly to the Commissioner of Internal 
                Revenue or the Chief Counsel for the Internal Revenue 
                Service; and
                    (C) any associate counsel, deputy counsel, or 
                division head in the Office of the Chief Counsel for 
                the Internal Revenue Service.
            (2) Specified employee.--The term ``specified employee'' 
        means, with respect to the Internal Revenue Service, any 
        employee who--
                    (A) holds a Senior Executive Service position (as 
                defined in section 3132 of title 5, United States Code) 
                in the Internal Revenue Service or the Office of Chief 
                Counsel for the Internal Revenue Service; and
                    (B) is not a principal officer of the Internal 
                Revenue Service.

SEC. 3002. PROHIBITION ON REHIRING ANY EMPLOYEE OF THE INTERNAL REVENUE 
              SERVICE WHO WAS INVOLUNTARILY SEPARATED FROM SERVICE FOR 
              MISCONDUCT.

    (a) In General.--Section 7804 is amended by adding at the end the 
following new subsection:
    ``(d) Prohibition on Rehiring Employees Involuntarily Separated.--
The Commissioner may not hire any individual previously employed by the 
Commissioner who was removed for misconduct under this subchapter or 
chapter 43 or chapter 75 of title 5, United States Code, or whose 
employment was terminated under section 1203 of the Internal Revenue 
Service Restructuring and Reform Act of 1998 (26 U.S.C. 7804 note).''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to the hiring of employees after the date of the 
enactment of this Act.

SEC. 3003. NOTIFICATION OF UNAUTHORIZED INSPECTION OR DISCLOSURE OF 
              RETURNS AND RETURN INFORMATION.

    (a) In General.--Subsection (e) of section 7431 is amended by 
adding at the end the following new sentences: ``The Secretary shall 
also notify such taxpayer if the Internal Revenue Service or a Federal 
or State agency (upon notice to the Secretary by such Federal or State 
agency) proposes an administrative determination as to disciplinary or 
adverse action against an employee arising from the employee's 
unauthorized inspection or disclosure of the taxpayer's return or 
return information. The notice described in this subsection shall 
include the date of the unauthorized inspection or disclosure and the 
rights of the taxpayer under such administrative determination.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to determinations proposed after the date which is 180 days after the 
date of the enactment of this Act.

        Subtitle B--Provisions Relating to Exempt Organizations

SEC. 3101. MANDATORY E-FILING BY EXEMPT ORGANIZATIONS.

    (a) In General.--Section 6033 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) Conforming Amendment.--Paragraph (7) of section 527(j) is 
amended by striking ``if the organization has'' and all that follows 
through ``such calendar year''.
    (c) Inspection of Electronically Filed Annual Returns.--Subsection 
(b) of section 6104 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 as soon 
as practicable in a machine readable format.''.
    (d) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to 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 this 
                        section would cause undue burden without a 
                        delay, the Secretary may delay the application 
                        of such amendments, but such delay shall not 
                        apply to any taxable year beginning on or after 
                        the date 2 years after 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 
                such delay shall not apply to any taxable year 
                beginning on or after the date 2 years after of the 
                enactment of this Act.

SEC. 3102. NOTICE REQUIRED BEFORE REVOCATION OF TAX EXEMPT STATUS FOR 
              FAILURE TO FILE RETURN.

    (a) In General.--Section 6033(j)(1) is amended by striking ``If an 
organization'' and inserting the following:
                    ``(A) Notice.--
                            ``(i) In general.--After an organization 
                        described in subsection (a)(1) or (i) fails to 
                        file the annual return or notice required under 
                        either subsection for 2 consecutive years, the 
                        Secretary shall notify the organization--
                                    ``(I) that the Internal Revenue 
                                Service has no record of such a return 
                                or notice from such organization for 2 
                                consecutive years, and
                                    ``(II) about the revocation that 
                                will occur under subparagraph (B) if 
                                the organization fails to file such a 
                                return or notice by the due date for 
                                the next such return or notice required 
                                to be filed.
                        The notification under the preceding sentence 
                        shall include information about how to comply 
                        with the filing requirements under subsection 
                        (a)(1) and (i).
                    ``(B) Revocation.--If an organization''.
    (b) Effective Date.--The amendment made by this section shall apply 
to failures to file returns or notices for 2 consecutive years if the 
return or notice for the second year is required to be filed after 
December 31, 2018.

                         Subtitle C--Tax Court

SEC. 3301. 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. 3302. 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) References.--Section 7459 is amended by redesignating 
subsection (g) as subsection (h) and by inserting after subsection (f) 
the following new subsection:
    ``(g) References.--Any reference in this title to a decision or 
report of the Tax Court shall be treated as a reference to a judgment 
or opinion of the Tax Court, respectively.''.
    (c) Conforming Amendment.--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.''.
    (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. 3303. 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. 3304. REPEAL OF DEADWOOD RELATED TO BOARD OF TAX APPEALS.

    (a) Section 7459, as amended by this Act, is amended by striking 
subsection (f) and by redesignating subsections (g) and (h) as 
subsections (f) and (g), respectively.
    (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.''.

            Attest:

                                                                 Clerk.
115th CONGRESS

  2d Session

                                H.R. 88

_______________________________________________________________________

                  HOUSE AMENDMENT TO SENATE AMENDMENT