[Congressional Record Volume 144, Number 55 (Wednesday, May 6, 1998)]
[Senate]
[Pages S4443-S4448]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                          AMENDMENTS SUBMITTED

                                 ______
                                 

   THE INTERNAL REVENUE SERVICE RESTRUCTURING AND REFORM ACT OF 1998

                                 ______
                                 

                        ROTH AMENDMENT NO. 2339

  Mr. ROTH proposed an amendment to the bill (H.R. 2676) to amend the 
Internal Revenue Code of 1986 to restructure and reform the Internal 
Revenue Service, and for other purposes; as follows:

       On page 401, strike line 3, and insert: ``beginning after 
     December 31, 1998''.
       On page 415, between lines 16 and 17, insert:

     SEC. 5007. CLARIFICATION OF DEFINITION OF SPECIFIED LIABILITY 
                   LOSS.

       (a) In General.--Subparagraph (B) of section 172(f)(1) 
     (defining specified liability loss) is amended to read as 
     follows:
       ``(B) Any amount (not described in subparagraph (A)) 
     allowable as a deduction under this chapter which is 
     attributable to a liability--
       ``(i) under a Federal or State law requiring the 
     reclamation of land, decommissioning of a nuclear power plant 
     (or any unit thereof), dismantlement of an offshore drilling 
     platform, remediation of environmental contamination, or 
     payment of workmen's compensation, and
       ``(ii) with respect to which the act (or failure to act) 
     giving rise to such liability occurs at least 3 years before 
     the beginning of the taxable year.''

[[Page S4444]]

       (b) Effective Date.--The amendment made by this section 
     shall apply to net operating losses arising in taxable years 
     beginning after the date of the enactment of this Act.

     SEC. 5008. MODIFICATION OF AGI LIMIT FOR CONVERSIONS TO ROTH 
                   IRAS.

       (a) In General.--Section 408A(c)(3)(C)(i) (relating to 
     limits based on modified adjusted gross income) is amended to 
     read as follows:
       ``(i) adjusted gross income shall be determined in the same 
     manner as under section 219(g)(3), except that--

       ``(I) any amount included in gross income under subsection 
     (d)(3) shall not be taken into account, and
       ``(II) any amount included in gross income by reason of a 
     required distribution under a provision described in 
     paragraph (5) shall not be taken into account for purposes of 
     subparagraph (B)(i).''

       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2004.

     SEC. 5009. EXTENSION OF INTERNAL REVENUE SERVICE USER FEES.

       Subsection (c) of section 10511 of the Revenue Act of 1987 
     is amended by striking ``October 1, 2003'' and inserting 
     ``October 1, 2007''.
                                 ______
                                 

                       KERREY AMENDMENT NO. 2340

  Mr. KERREY proposed an amendment to the bill, H.R. 2676, supra; as 
follows:

       Beginning on page 277, line 4, strike all through page 279, 
     line 25.
       On page 280, line 1, strike ``3105'' and insert ``3104''.
       On page 282, line 11, strike ``3106'' and insert ``3105''.
       On page 286, line 1, strike ``3107'' and insert ``3106''.
       On page 309, lines 7 and 8, strike ``the date of the 
     enactment of this Act'' and insert ``_____, 1998''.
       On page 399, line 24, strike ``the date of the enactment of 
     this Act'' and insert ``December 31, 2001''.
       On page 400, lines 4 and 5, strike ``the date of the 
     enactment of this Act'' and insert ``December 31, 2001''.
       On page 415, between lines 16 and 17, insert:

     SEC. 5007. CLARIFICATION OF DEFINITION OF SPECIFIED LIABILITY 
                   LOSS.

       (a) In General.--Subparagraph (B) of section 172(f)(1) 
     (defining specified liability loss) is amended to read as 
     follows:
       ``(B) Any amount (not described in subparagraph (A)) 
     allowable as a deduction under this chapter which is 
     attributable to a liability--
       ``(i) under a Federal or State law requiring the 
     reclamation of land, decommissioning of a nuclear power plant 
     (or any unit thereof), dismantlement of an offshore drilling 
     platform, remediation of environmental contamination, or 
     payment of workmen's compensation, and
       ``(ii) with respect to which the act (or failure to act) 
     giving rise to such liability occurs at least 3 years before 
     the beginning of the taxable year.''
       (b) Effective Date.--The amendment made by this section 
     shall apply to net operating losses arising in taxable years 
     beginning after the date of the enactment of this Act.

     SEC. 5008. PROPERTY SUBJECT TO A LIABILITY TREATED IN SAME 
                   MANNER AS ASSUMPTION OF LIABILITY.

       (a) Repeal of Property Subject to a Liability Test.--
       (1) Section 357.--Section 357(a) (relating to assumption of 
     liability) is amended by striking ``, or acquires from the 
     taxpayer property subject to a liability'' in paragraph (2).
       (2) Section 358.--Section 358(d)(1) (relating to assumption 
     of liability) is amended by striking ``or acquired from the 
     taxpayer property subject to a liability''.
       (3) Section 368.--
       (A) Section 368(a)(1)(C) is amended by striking ``, or the 
     fact that property acquired is subject to a liability,''.
       (B) The last sentence of section 368(a)(2)(B) is amended by 
     striking ``, and the amount of any liability to which any 
     property acquired from the acquiring corporation is 
     subject,''.
       (b) Clarification of Assumption of Liability.--Section 
     357(c) is amended by adding at the end the following new 
     paragraph:
       ``(4) Determination of amount of liability assumed.--For 
     purposes of this section, section 358(d), section 
     368(a)(1)(C), and section 368(a)(2)(B)--
       ``(A) a liability shall be treated as having been assumed 
     to the extent, as determined on the basis of facts and 
     circumstances, the transferor is relieved of such liability 
     or any portion thereof (including through an indemnity 
     agreement or other similar arrangement), and
       ``(B) in the case of the transfer of any property subject 
     to a nonrecourse liability, unless the facts and 
     circumstances indicate otherwise, the transferee shall be 
     treated as assuming with respect to such property a ratable 
     portion of such liability determined on the basis of the 
     relative fair market values (determined without regard to 
     section 7701(g)) of all assets subject to such liability.''
       (c) Application to Provisions Other Than Subchapter C.--
       (1) Section 584.--Section 584(h)(3) is amended--
       (A) by striking ``, and the fact that any property 
     transferred by the common trust fund is subject to a 
     liability,'' in subparagraph (A),
       (B) by striking clause (ii) of subparagraph (B) and 
     inserting:
       ``(ii) Assumed liabilities.--For purposes of clause (i), 
     the term `assumed liabilities' means any liability of the 
     common trust fund assumed by any regulated investment company 
     in connection with the transfer referred to in paragraph 
     (1)(A).
       ``(C) Assumption.--For purposes of this paragraph, in 
     determining the amount of any liability assumed, the rules of 
     section 357(c)(4) shall apply.''
       (2) Section 1031.--The last sentence of section 1031(d) is 
     amended--
       (A) by striking ``assumed a liability of the taxpayer or 
     acquired from the taxpayer property subject to a liability'' 
     and inserting ``assumed (as determined under section 
     357(c)(4)) a liability of the taxpayer'', and
       (B) by striking ``or acquisition (in the amount of the 
     liability)''.
       (d) Conforming Amendments.--
       (1) Section 351(h)(1) is amended by striking ``, or 
     acquires property subject to a liability,''.
       (2) Section 357 is amended by striking ``or acquisition'' 
     each place it appears in subsection (a) or (b).
       (3) Section 357(b)(1) is amended by striking ``or 
     acquired''.
       (4) Section 357(c)(1) is amended by striking ``, plus the 
     amount of the liabilities to which the property is 
     subject,''.
       (5) Section 357(c)(3) is amended by striking ``or to which 
     the property transferred is subject''.
       (6) Section 358(d)(1) is amended by striking ``or 
     acquisition (in the amount of the liability)''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to transfers after the date of the enactment of 
     this Act.

     SEC. 5009. EXTENSION OF INTERNAL REVENUE SERVICE USER FEES.

       Subsection (c) of section 10511 of the Revenue Act of 1987 
     is amended by striking ``October 1, 2003'' and inserting 
     ``October 1, 2007''.

     SEC. 5010. EXTENSION OF HAZARDOUS SUBSTANCE SUPERFUND TAXES.

       (a) Extension of Taxes.--
       (1) Environmental tax.--Section 59A(e) is amended to read 
     as follows:
       ``(e) Application of Tax.--The tax imposed by this section 
     shall apply to taxable years beginning after December 31, 
     1986, and before January 1, 1996, and to taxable years 
     beginning after December 31, 2001, and before January 1, 
     2008.''
       (2) Excise taxes.--Section 4611(e) is amended to read as 
     follows:
       ``(e) Application of Hazardous Substance Superfund 
     Financing Rate.--The Hazardous Substance Superfund financing 
     rate under this section shall apply after December 31, 1986, 
     and before January 1, 1996, and after December 31, 2001, and 
     before October 1, 2008.''
       (b) Effective Dates.--
       (1) Income tax.--The amendment made by subsection (a)(1) 
     shall apply to taxable years beginning after December 31, 
     2001.
       (2) Excise tax.--The amendment made by subsection (a)(2) 
     shall take effect on January 1, 2002.

     SEC. 5011. MODIFICATION OF DEPRECIATION METHOD FOR TAX-EXEMPT 
                   USE PROPERTY.

       (a) In General.--Subparagraph (A) of section 168(g)(3) 
     (relating to tax-exempt use property subject to lease) is 
     amended to read as follows:
       ``(A) Tax-exempt use property.--In the case of any tax-
     exempt use property, the recovery period used for purposes of 
     paragraph (2) shall be equal to 150 percent of the class life 
     of the property determined without regard to this 
     subparagraph.''
       (b) Effective Date.--The amendment made by this section 
     shall apply to property--
       (1) placed in service after December 31, 1998, and
       (2) placed in service on or before such date which--
       (A) becomes tax-exempt use property after such date, or
       (B) becomes subject to a lease after such date which was 
     not in effect on such date.

     In the case of property to which paragraph (2) applies, the 
     amendment shall only apply with respect to periods on and 
     after the date the property becomes tax-exempt use property 
     or subject to such a lease.

     SEC. 5012. EXTENSION OF REPORTING FOR CERTAIN VETERANS 
                   PAYMENTS.

       The last sentence of section 6103(l)(7) (relating to 
     disclosure of return information to Federal, State, and local 
     agencies administering certain programs) is amended by 
     striking ``September 30, 2003'' and inserting ``September 30, 
     2008''.
       On page 260, line 14, strike ``shall develop'' and insert 
     ``shall, not later than January 1, 2000, develop''.
       On page 305, lines 3 and 4, strike ``the date of the 
     enactment of this Act'' and insert ``June 30, 2000''.
       On page 305, lines 10 and 11, strike ``the date of the 
     enactment of this Act'' and insert ``June 30, 2000''.
       On page 308, line 13, strike ``the date of the enactment of 
     this Act'' and insert ``June 30, 1999''.
       On page 309, lines 7 and 8, strike ``the date of the 
     enactment of this Act'' and insert ``December 31, 1999''.
       On page 310, strike line 19, and insert ``December 31, 
     1999''.
       On page 312, lines 15 and 16, strike ``the date of the 
     enactment of this Act'' and insert ``December 31, 1999''.

[[Page S4445]]

       On page 314, lines 3 and 4, strike ``the 180th day after 
     the date of the enactment of this Act'' and insert ``December 
     31, 2000''.
       On page 315, line 11, strike ``June 30, 2000'' and insert 
     ``December 31, 2000''.
       On page 324, strike lines 9 through 12, and insert:
       (e) Effective Date.--The amendments made by this section 
     shall apply to collection actions initiated after December 
     31, 1999.
       On page 343, after line 24, insert:
       (c) Effective Date.--This section shall apply to collection 
     actions initiated after December 31, 1999.
       On page 345, lines 6 and 7, strike ``the date of the 
     enactment of this Act'' and insert ``December 31, 1999''.
       On page 348, line 6, strike ``December 31, 1998'' and 
     insert ``December 31, 1999''.
       On page 351, lines 13 and 14, strike ``the date of the 
     enactment of this Act'' and insert ``December 31, 1999''.
       On page 357, lines 6 and 7, strike ``the date of the 
     enactment of this Act'' and insert ``December 31, 1999''.
       On page 357, lines 9 and 10, strike ``the date of the 
     enactment of this Act'' and insert ``December 31, 1999''.
       On page 357, strike lines 16 and 17, and insert:
       (B) December 31, 1999.
       On page 362, lines 12 and 13, strike ``the 60th day after 
     the date of the enactment of this Act'' and insert ``December 
     31, 1999''.
       On page 370, lines 17 and 18, strike ``the date of the 
     enactment of this Act'' and insert ``January 1, 1999''.
       On page 371, line 11, insert: ``This subsection shall apply 
     only with respect to taxes arising after June 30, 2000, and 
     any liability for tax arising on or before such date but 
     remaining unpaid as of such date.'' after the end period.
       On page 374, lines 4 and 5, strike ``180 days after the 
     date of the enactment of this Act'' and insert ``July 1, 
     2000''.
       On page 379, line 15, insert ``, on and after July 1, 
     1999,'' after ``shall''.
       On page 382, line 2, strike ``60 days after the date of the 
     enactment of this Act'' and insert ``on January 1, 2000''.
       On page 383, line 14, insert ``, except that the removal of 
     any designation under subsection (a)(2)(A) shall not be 
     required to begin before January 1, 1999'' after ``Act''.
       On page 385, lines 7 and 8, strike ``the date of the 
     enactment of this Act'' and insert ``January 1, 2000''.
                                 ______
                                 

                        BOND AMENDMENT NO. 2341

  Mr. BOND proposed an amendment to the bill, H.R. 2676, supra; as 
follows:

       Beginning on page 174, strike line 10 and all that follows 
     through page 192, line 25, and insert the following:

     SEC. 1101. INTERNAL REVENUE SERVICE BOARD OF GOVERNORS.

       (a) In General.--Section 7802 (relating to the Commissioner 
     of Internal Revenue) is amended to read as follows:

     ``SEC. 7802. INTERNAL REVENUE SERVICE BOARD OF GOVERNORS.

       ``(a) Establishment.--There is established within the 
     Department of the Treasury the Internal Revenue Service Board 
     of Governors (in this title referred to as the `Board').
       ``(b) Membership.--
       ``(1) Composition.--The Board shall be composed of 5 
     members, of whom--
       ``(A) 4 shall be individuals who are appointed by the 
     President, by and with the advice and consent of the Senate, 
     and
       ``(B) 1 shall be the Commissioner of Internal Revenue.

     Not more than 2 members of the Board appointed under 
     subparagraph (A) may be affiliated with the same political 
     party.
       ``(2) Qualifications.--Members of the Board described in 
     paragraph (1)(A) shall be appointed solely on the basis of 
     their professional experience and expertise in 1 or more of 
     the following areas:
       ``(A) The needs and concerns of taxpayers.
       ``(B) Organization development.
       ``(C) Customer service.
       ``(D) Operation of small businesses.
       ``(E) Management of large businesses.
       ``(F) Information technology.
       ``(G) Compliance.

     In the aggregate, the members of the Board described in 
     paragraph (1)(A) should collectively bring to bear expertise 
     in these enumerated areas.
       ``(3) Terms.--Each member who is described in paragraph 
     (1)(A) shall be appointed for a term of 5 years, except that 
     of the members first appointed--
       ``(A) 1 member who is affiliated with the same political 
     party as the President shall be appointed for a term of 1 
     year,
       ``(B) 1 member who is not affiliated with the same 
     political party as the President shall be appointed for a 
     term of 2 years,
       ``(C) 1 member who is affiliated with the same political 
     party as the President shall be appointed for a term of 3 
     years, and
       ``(D) 1 member who is not affiliated with the same 
     political party as the President shall be appointed for a 
     term of 4 years.

     A member of the Board may serve on the Board after the 
     expiration of the member's term until a successor has taken 
     office as a member of the Board.
       ``(4) Reappointment.--An individual who is described in 
     paragraph (1)(A) may be appointed to no more than two 5-year 
     terms on the Board.
       ``(5) Vacancy.--Any vacancy on the Board--
       ``(A) shall not affect the powers of the Board, and
       ``(B) shall be filled in the same manner as the original 
     appointment.

     Any member appointed to fill a vacancy occurring before the 
     expiration of the term for which the member's predecessor was 
     appointed shall be appointed for the remainder of that term.
       ``(6) Removal.--
       ``(A) In general.--A member of the Board may be removed at 
     the will of the President.
       ``(B) Commissioner of internal revenue.--An individual 
     described in paragraph (1)(B) shall be removed upon 
     termination of employment.
       ``(c) General responsibilities.--
       ``(1) In general.--The Board shall oversee the Internal 
     Revenue Service in the administration, management, conduct, 
     direction, and supervision of the execution and application 
     of the internal revenue laws or related statutes and tax 
     conventions to which the United States is a party.
       ``(2) Consultation on tax policy.--The Board shall be 
     responsible for consulting with the Secretary of the Treasury 
     with respect to the development and formulation of Federal 
     tax policy relating to existing or proposed internal revenue 
     laws, related statutes, and tax conventions.
       ``(d) Specific responsibilities.--The Board shall have the 
     following specific responsibilities:
       ``(1) Strategic plans.--To review and approve strategic 
     plans of the Internal Revenue Service, including the 
     establishment of--
       ``(A) mission and objectives, and standards of performance 
     relative to either, and
       ``(B) annual and long-range strategic plans.
       ``(2) Operational plans.--To review and approve the 
     operational functions of the Internal Revenue Service, 
     including--
       ``(A) plans for modernization of the tax system,
       ``(B) plans for outsourcing or managed competition, and
       ``(C) plans for training and education.
       ``(3) Management.--To--
       ``(A) recommend to the President candidates for appointment 
     as the Commissioner of Internal Revenue and recommend to the 
     President the removal of the Commissioner,
       ``(B) recommend to the Secretary of the Treasury 3 
     candidates for appointment as the National Taxpayer Advocate 
     from individuals who have--
       ``(i) a background in customer service as well as tax law, 
     and
       ``(ii) experience in representing individual taxpayers,
       ``(C) recommend to the Secretary of the Treasury the 
     removal of the National Taxpayer Advocate,
       ``(D) oversee the operation of the Office of the Taxpayer 
     Advocate and the Internal Revenue Service Office of Appeals,
       ``(E) review and approve the Commissioner's selection, 
     evaluation, and compensation of Internal Revenue Service 
     senior executives who have program management 
     responsibilities over significant functions of the Internal 
     Revenue Service,
       ``(F) review and approve the Commissioner's plans for 
     reorganization of the Internal Revenue Service, and
       ``(G) review and approve procedures of the Internal Revenue 
     Service relating to financial audits required by law.
       ``(4) Budget.--To--
       ``(A) review and approve the budget request of the Internal 
     Revenue Service prepared by the Commissioner,
       ``(B) submit such budget request to the Secretary of the 
     Treasury, and
       ``(C) ensure that the budget request supports the annual 
     and long-range strategic plans of the Internal Revenue 
     Service.
       ``(5) Taxpayer protection.--To ensure the proper treatment 
     of taxpayers by the employees of the Internal Revenue 
     Service.

     The Secretary shall submit, without revision, the budget 
     request referred to in paragraph (4) for any fiscal year to 
     the President who shall submit, without revision, such 
     request to Congress together with the President's annual 
     budget request for the Internal Revenue Service for such 
     fiscal year.
       ``(e) Board personnel matters.--
       ``(1) Compensation of members.--Each member of the Board 
     who is described in subsection (b)(1)(A) shall be compensated 
     at an annual rate equal to the rate for Executive Schedule IV 
     under title 5 of the United States Code. The Commissioner 
     shall receive no additional compensation for service on the 
     Board.
       ``(2) Staff.--The Chairperson of the Board shall have the 
     authority to hire such personnel as may be necessary to 
     enable the Board to perform its duties.
       ``(3) Procurement of temporary and intermittent services.--
     The Chairperson of the Board may procure temporary and 
     intermittent services under section 3109(b) of title 5, 
     United States Code.
       ``(f) Administrative matters.--
       ``(1) Chair.--
       ``(A) Term.--The Commissioner of Internal Revenue shall 
     serve as the chairperson of the Board.
       ``(B) Powers.--Except as otherwise provided by a majority 
     vote of the Board, the powers of the Chairperson shall 
     include--
       ``(i) establishing committees,
       ``(ii) setting meeting places and times,
       ``(iii) establishing meeting agendas, and
       ``(iv) developing rules for the conduct of business.
       ``(2) Meetings.--The Board shall meet at least once each 
     month and at such other times as the Board determines 
     appropriate.

[[Page S4446]]

       ``(3) Quorum; voting requirements; delegation of 
     authorities.--3 members of the Board shall constitute a 
     quorum. All decisions of the Board with respect to the 
     exercise of its duties and powers under this section shall be 
     made by a majority vote of the members present and voting. A 
     member of the Board may not delegate to any person the 
     member's vote or any decisionmaking authority or duty vested 
     in the Board by the provisions of this section.
       ``(4) Reports.--The Board shall each year report with 
     respect to the conduct of its responsibilities under this 
     title to the President, the Committees on Ways and Means, 
     Government Reform and Oversight, and Appropriations of the 
     House of Representatives, and the Committees on Finance, 
     Governmental Affairs, and Appropriations of the Senate.''.
       (b) Conforming Amendments.--
       (1) Section 5315 of title 5, United States Code, is amended 
     by adding at the end the following new item:

``Members, Internal Revenue Service Board of Governors.''

       (2) Section 7701(a) (relating to definitions) is amended by 
     inserting after paragraph (46) the following new paragraph:
       ``(47) Board.--The term `Board' means the Board of 
     Governors of the Internal Revenue Service.''
       (3) The table of sections for subchapter A of chapter 80 is 
     amended by striking the item relating to section 7802 the 
     inserting the following new item:

``Sec. 7802. Internal Revenue Service Board of Governors.''

       (c) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     take effect on the date of the enactment of this Act.
       (2) Initial nominations to internal revenue service board 
     of governors.--The President shall submit nominations under 
     section 7802 of the Internal Revenue Code of 1986, as added 
     by this section, to the Senate not later than 6 months after 
     the date of the enactment of this Act.
       (3) Effect on actions prior to appointment of board of 
     governors.--Nothing in this section shall be construed to 
     invalidate the actions and authority of the Internal Revenue 
     Service prior to the appointment of the members of the 
     Internal Revenue Service Board of Governors.
       On page 194, line 14, strike ``Oversight''.
       On page 195, line 2, strike ``Oversight''.
       On page 197, lines 11 and 12, strike ``Oversight''.
       On page 202, line 2, strike ``Oversight''.
       On page 212, line 13, strike ``Oversight Board'' and insert 
     ``Board of Governors''.
       On page 217, line 10, strike ``Oversight Board'' and insert 
     ``Board of Governors''.
       On page 217, lines 22 and 23, strike ``Oversight Board'' 
     and insert ``Board of Governors''.
       On page 220, line 12, strike ``Oversight Board'' and insert 
     ``Board of Governors''.
       On page 220, line 17, strike ``Oversight Board'' and insert 
     ``Board of Governors''.
       On page 235, line 2, strike ``Oversight Board'' and insert 
     ``Board of Governors''.
       On page 258, line 8, strike ``Oversight Board'' and insert 
     ``Board of Governors''.
                                 ______
                                 

                        REID AMENDMENT NO. 2342

  Mr. REID proposed an amendment to the bill, H.R. 2676, supra; as 
follows:

       At the end of subtitle H of title III, add the following:

     SEC. __. ELIMINATION OF PAYMENTS FOR DETECTION OF 
                   UNDERPAYMENTS AND FRAUD.

       (a) In General.--Subchapter B of chapter 78 is amended by 
     striking section 7623.
       (b) Conforming Amendment.--The table of sections for 
     subchapter B of chapter 78 is amended by striking the item 
     relating to section 7623.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date of enactment of this Act.
                                 ______
                                 

                LEAHY (AND ASHCROFT) AMENDMENT NO. 2343

  Mr. KERREY (for Mr. Leahy, for himself and Mr. Ashcroft) proposed an 
amendment to the bill, H.R. 2676, supra; as follows:

       On page 262, after line 14, add the following new 
     paragraph:
       ``In the case of taxable periods beginning after December 
     31, 1998, the Secretary of the Treasury or the Secretary's 
     delegate shall establish procedures for all Tax Forms, 
     Instructions, and Publications created in the most recent 5-
     year period to be made available electronically on the 
     Internet in a searchable database not later than the date 
     such records are available to the public in printed form. In 
     addition, in the case of taxable periods beginning after 
     December 31, 1998, the Secretary of the Treasury or the 
     Secretary's delegate shall, to the extent practicable, 
     establish procedures for other taxpayer guidance to be made 
     available electronically on the Internet in a searchable 
     database not later than the date such guidance is available 
     to the public in printed form.''
                                 ______
                                 

                  DORGAN (AND REID) AMENDMENT NO. 2344

  Mr. DORGAN (for himself and Mr. Reid) proposed an amendment to the 
bill, H.R. 2676, supra; as follows:

       On page 394, between lines 15 and 16, insert:

     SEC. 3803. STUDY OF TRANSFER PRICING ENFORCEMENT.

       (1) In general.--The Internal Revenue Service Oversight 
     Board shall study whether the Internal Revenue Service has 
     the resources needed to prevent tax avoidance by companies 
     using unlawful transfer pricing methods.
       (2) Assistance.--The Internal Revenue Service shall assist 
     the Board in its study by analyzing and reporting to the 
     Board on its enforcement of transfer pricing abuses, 
     including a review of the effectiveness of the current 
     enforcement tools used by the Internal Revenue Service to 
     ensure compliance under section 482 of the Internal Revenue 
     Code of 1986 and to determine the scope of nonpayment of 
     United States taxes by reason of such abuses.
       (3) Report.--The Board shall report to Congress, not later 
     than 12 months after the date of enactment of this Act, on 
     the results of the study conducted under this subsection, 
     including recommendations for improving the Internal Revenue 
     Service's enforcement tools to ensure that multinational 
     companies doing business in the United States pay their fair 
     share of United States taxes.
                                 ______
                                 

                    DeWINE AMENDMENTS NOS. 2345-2346

  (Ordered to lie on the table.)
  Mr. DeWINE submitted two amendments intended to be proposed by him to 
the bill, H.R. 2676, supra; as follows:

                           Amendment No. 2345

       On page 291, between lines 6 and 7, insert:

     SEC. 3108. PROCEEDINGS TO REDUCE COMPLIANCE BURDENS RELATING 
                   TO NET OPERATING LOSSES.

       (a) Administrative Proceedings.--Section 6001 (relating to 
     notice or regulations requiring records, statements, and 
     special returns) is amended--
       (1) by striking ``Every'' and inserting
       ``(a) In General.--Every'', and
       (2) by adding at the end the following new subsection:
       ``(b) Special Rule for Records Relating to Net Operating 
     Losses.--
       ``(1) In general.--If, within 5 years of filing, the 
     Secretary has not examined any return of tax for a taxable 
     year in which a net operating loss (as defined in section 
     172(c)) arises, the taxpayer may request the Secretary to--
       ``(A) enter into a formal record retention agreement with 
     respect to records relating to such taxable year, or
       ``(B) if an agreement under subparagraph (A) cannot be 
     mutually agreed upon, conduct an examination of such return.
       ``(2) Time for action.--
       ``(A) In general.--The Secretary shall have 90 days from 
     receipt of a request to enter into the agreement under 
     paragraph (1)(A). If an agreement cannot be reached within 
     such 90-day period, the Secretary shall immediately schedule 
     the date for the examination under paragraph (1)(B).
       ``(B) Examination.--Any examination under paragraph (1)(B) 
     shall be completed within 1 year of the close of the 90-day 
     period under subparagraph (A) unless the taxpayer and the 
     Secretary mutually agree to an extension of the 1-year 
     period.
       ``(C) Effect of failure.--If the Secretary fails to meet 
     any deadline under this paragraph, the net operating loss for 
     the taxable year at issue shall be the amount included on the 
     return of tax.
       ``(3) Payment.--The Secretary may assess a fee of up to 
     $10,000 on any taxpayer filing a request under this 
     subsection in order to defray the Secretary's expenses under 
     this subsection.''
       (b) Declaratory Judgment Proceeding.--
       (1) In general.--Part IV of subchapter C of chapter 76 is 
     amended by adding at the end the following new section:

     ``SEC. 7480. DECLARATORY JUDGMENT INVOLVING NET OPERATING 
                   LOSS DEDUCTION.

       ``(a) Creation of Remedy.--In a case of actual controversy 
     involving a determination by the Secretary of the correctness 
     of a net operating loss under section 172(c) under an 
     examination (or administrative appeal thereof) pursuant to 
     section 6001(b), upon the filing of an appropriate pleading, 
     the Tax Court may make a declaration with respect to the 
     correctness of such deduction. Any such declaration shall 
     have the force and effect of a decision of the Tax Court and 
     shall be reviewable as such.
       ``(b) Limitations.--
       ``(1) Petitioner.--A pleading may be filed under this 
     section only by a taxpayer who filed a request under section 
     6001(b).
       ``(2) Exhaustion of administrative remedies.--The court 
     shall not issue a declaratory judgment or decree under this 
     section in any proceeding unless it determines the petitioner 
     has exhausted all administrative remedies within the Internal 
     Revenue Service. A petitioner shall be deemed to have 
     exhausted its administrative remedies as of the close of the 
     period described in section 6601(b)(2)(B).
       ``(3) Time for bringing action.--No proceeding may be 
     initiated under this section unless it is filed before the 
     91st day after the last day of the period under section 
     6601(b)(2)(B).''
       (2) Conforming amendment.--The table of sections for part 
     IV of subchapter C of chapter 76 is amended by adding at the 
     end the following new item:

``Sec. 7480. Declaratory judgment involving net operating loss 
              deduction.''

              
                                  ____

[[Page S4447]]



                           Amendment No. 2346

       On page 312, strike lines 1 through 6 and insert:
       (b) Amendment Related to Section 1011 of 1997 Act.--
     Subsection (d) of Section 1059 of the 1986 Code is amended by 
     adding at the end the following paragraph:
       ``(7) Exception for excess loss accounts.--Except as 
     provided in regulations prescribed by the Secretary after 
     March 26, 1998, subsection (a) shall not apply to any 
     extraordinary dividend to the extent that the regulations 
     prescribed under section 1502 require the creation or 
     increase of an excess loss account.
                                 ______
                                 

                       GRAHAM AMENDMENT NO. 2347

  Mr. GRAHAM proposed an amendment to the bill, H.R. 2676, supra; as 
follows:

       On page 176, between lines 4 and 5, insert the following:
       ``(vii) The needs and concerns of small businesses.''
                                 ______
                                 

                ASHCROFT (AND LEAHY) AMENDMENT NO. 2348

  Mr. ASHCROFT (for himself and Mr. Leahy) proposed an amendment to the 
bill, H.R. 2676, supra; as follows:

       On page 261, strike lines 4 through 7, and insert ``and 
     subscribed''.
                                 ______
                                 

                  COVERDELL AMENDMENTS NOS. 2349-2353

  (Ordered to lie on the table.)
  Mr. COVERDELL submitted four amendments intended to be proposed by 
him to the bill, H.R. 2676, supra; as follows:

                           Amendment No. 2349

       At the appropriate place insert the following:

     SEC.  . FAIRNESS WHEN COLLECTING A TAX DUE TO MATHEMATICAL 
                   AND CLERICAL ERRORS.

       (a) In General.--Section 6404(d) of the Internal Revenue 
     Code of 1986 (relating to abatements) is amended to read as 
     follows:
       ``(d) Abatement of Interest, Penalty, Additional, Amount, 
     and Addition to Tax Attributable to Certain Mathematical, or 
     Clerical Errors.--In the case of an assessment of additional 
     tax attributable to a mathematical or clerical error (as 
     defined in section 6213(g)(2)), the Secretary shall abate any 
     interest, penalty, additional amount, and addition to tax 
     with respect to such assessment if, within 60 days after 
     notice of such assessment is sent under section 6213(b)(1) by 
     certified mail or registered mail, the taxpayer pays, or 
     files a request for an abatement of, such assessment.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to notices filed after the date of the enactment 
     of this Act.
                                  ____


                           Amendment No. 2350

       After ``misconduct.'' on page 252, line 18, insert:
       ``Such a terminated employee shall be barred from 
     employment in the Federal service.''
                                  ____


                           Amendment No. 2351

       On page 376, strike lines 3 through 15, and insert:
       ``(B) Representation of low income taxpayers.--A clinic 
     meets the requirements of subparagraph (A)(ii)(I) if at least 
     90 percent of the taxpayers represented by the clinic have 
     incomes which do not exceed 250 percent of the poverty level, 
     as determined in accordance with criteria established by the 
     Director of the Office of Management and Budget.
                                  ____


                           Amendment No. 2352

       Beginning on page 377, line 20, strike all through page 
     378, line 14, and insert:
       ``(4) Criteria for awards.--In determining whether to make 
     a grant under this section, the Secretary--
       ``(A) shall consider--
       ``(i) the numbers of taxpayers who will be served by the 
     clinic, including the number of taxpayers in the geographical 
     area for whom English is a second language,
       ``(ii) the existence of other low income taxpayer clinics 
     serving the same population,
       ``(iii) the quality of the program offered by the low 
     income taxpayer clinic, including the qualifications of its 
     administrators and qualified representatives, and its record, 
     if any, in providing service to low income taxpayers, and
       ``(iv) alternative funding sources available to the clinic, 
     including amounts received from other grants and 
     contributions, and the endowment and resources of the 
     institution sponsoring the clinic, and
       ``(B) shall give preference to any clinic in existence on 
     the date of the enactment of this section.
                                 ______
                                 

               COVERDELL (AND OTHERS) AMENDMENT NO. 2353

  (Ordered to lie on the table.)
  Mr. COVERDELL (for himself, Mr. Cochran, Mr. Frist, Mr. Hagel, and 
Mr. Inhofe) submitted an amendment intended to be proposed by them to 
the bill, H.R. 2676, supra; as follows:
       On page 342, after line 24, add:

     SEC. 3418. PROHIBITION OF RANDOM AUDITS.

       (a) In General.--Section 7602 (relating to examination of 
     books and witnesses), as amended by section 3417, is amended 
     by adding at the end the following new subsection:
       ``(f) Limitations on Authority To Examine.--
       ``(1) Identification of purpose and basis for examination 
     required.--In taking any action under subsection (a), the 
     Secretary shall identify in plain language the purpose and 
     the basis for initiating an examination in any notice of such 
     an examination to any person described in subsection (a).
       ``(2) Random audits prohibited.--The Secretary shall not 
     base, in whole or in part, the initiation of an examination 
     of a return under subsection (a) on the use of a 
     statistically random return selection technique from a 
     population or subpopulation.''
       (b) Effective Date.--The amendments made by this section 
     shall apply to examinations initiated after April 29, 1998.
                                 ______
                                 

                       STEVENS AMENDMENT NO. 2354

  (Ordered to lie on the table.)
  Mr. STEVENS submitted an amendment intended to be proposed by them to 
the bill, H.R. 2676, supra; as follows:

       On page 344, strike lines 7 through 9 and insert in lieu 
     thereof the following:
       (b) Books, Etc.--Section 6334(a)(3) (relating to books and 
     tools of a trade, business, or profession) is amended by 
     striking ``$1,250 in value'' and inserting ``$5,000 in value, 
     and any permits issued by a State and required under State 
     law for the harvest of fish or wildlife in the trade, 
     business, or profession of the taxpayer''.
                                 ______
                                 

                SHELBY (AND SESSIONS) AMENDMENT NO. 2355

  Mr. SHELBY (for himself and Mr. Sessions) proposed an amendment to 
the bill, H.R. 2676, supra; as follows:

       At the appropriate place in the bill insert the following 
     new section:

     SEC. __. CONGRESSIONAL REVIEW OF INTERNAL REVENUE SERVICE 
                   RULES THAT INCREASE REVENUE.

       (a) Short Title.--This section may be cited as the 
     ``Stealth Tax Prevention Act''.
       (b) In General.--Section 804(2) of title 5, United States 
     Code, is amended to read as follows:
       ``(2) The term `major rule'--
       ``(A) means any rule that--
       ``(i) the Administrator of the Office of Information and 
     Regulatory Affairs of the Office of Management and Budget 
     finds has resulted in or is likely to result in--

       ``(I) an annual effect on the economy of $100,000,000 or 
     more;
       ``(II) a major increase in costs or prices for consumers, 
     individual industries, Federal, State, or local government 
     agencies, or geographic regions; or
       ``(III) significant adverse effects on competition, 
     employment, investment, productivity, innovation, or on the 
     ability of United States-based enterprises to compete with 
     foreign-based enterprises in domestic and export markets; or

       ``(ii)(I) is promulgated by the Internal Revenue Service; 
     and
       ``(II) the Administrator of the Office of Information and 
     Regulatory Affairs of the Office of Management and Budget 
     finds that the implementation and enforcement of the rule has 
     resulted in or is likely to result in any net increase in 
     Federal revenues over current practices in tax collection or 
     revenues anticipated from the rule on the date of the 
     enactment of the statute under which the rule is promulgated; 
     and
       ``(B) does not include any rule promulgated under the 
     Telecommunications Act of 1996 and the amendments made by 
     that Act.''.
                                 ______
                                 

                THOMPSON (AND OTHERS) AMENDMENT NO. 2356

  Mr. THOMPSON (for himself, Mr. Sessions, and Mr. Faircloth) proposed 
an amendment to the bill, H.R. 2676, supra; as follows:

       On page 180, beginning with line 7, strike all through page 
     181, line 17.
                                 ______
                                 

                 KOHL (AND FEINGOLD) AMENDMENT NO. 2357

  Mr. KERREY (for Mr. Kohl, for himself, and Mr. Feingold) proposed an 
amendment to the bill, H.R. 2676, supra; as follows:

       On page 229, insert between lines 15 and 16 the following 
     new section:

     SEC. 1106. REVIEW OF MILWAUKEE AND WAUKESHA INTERNAL REVENUE 
                   SERVICE OFFICES.

       (a) In General.--
       (1) Review.--The Commissioner of Internal Revenue shall 
     appoint an independent expert in employment and personnel 
     matters to conduct a review of the investigation conducted by 
     the task force, established by the Internal Revenue Service 
     and initiated in January 1998, of the equal employment 
     opportunity process of the Internal Revenue Service offices 
     located in the area of Milwaukee and Waukesha, Wisconsin.
       (2) Content.--The review conducted under paragraph (1) 
     shall include--
       (A) a determination of the accuracy and validity of such 
     investigation; and

[[Page S4448]]

       (B) if determined necessary by the expert, a further 
     investigation of such offices relating to--
       (i) the equal employment opportunity process; and
       (ii) any alleged discriminatory employment-related actions, 
     including any alleged violations of Federal law.
       (b) Report.--Not later than July 1, 1999, the independent 
     expert shall report on the review conducted under subsection 
     (a) (and any recommendations for action) to Congress and the 
     Commissioner of Internal Revenue.

                          ____________________