[Congressional Record Volume 150, Number 68 (Friday, May 14, 2004)]
[Senate]
[Pages S5498-S5499]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               JUMPSTART OUR BUSINESS STRENGTH (JOBS) ACT


                         irs free file program

  Mr. ALLEN. Mr. President, I commend the chairman and ranking member 
of the Finance Committee, Senators Grassley and Baucus, for their work 
on the Tax Administration Good Government Act. The legislation provides 
taxpayer safeguards, streamlines tax administration, and simplifies the 
tax code. I do have some concern with one provision in the bill. 
Specifically, the bill also includes a provision on the IRS Free File 
Program. The Free File Program is the result of a public-private 
partnership agreement between the IRS and the Free File Alliance, LLC, 
a group of tax software companies managed by the Council for the 
Electronic Revenue Communication Advancement, CERCA. It is important to 
continue to promote these types of public-private partnerships and it 
is my hope that we can work together on this provision as we move to 
conference with the House of Representatives.
  Mr. GRASSLEY. I thank the Senator from Virginia. The IRS Free File 
Program is a direct result of the goal that Congress set for the IRS to 
have 80 percent of returns filed electronically by 2007. The 
partnership agreement calls for the Free File Alliance to provide free 
tax preparation and filing to at least 60 percent of all taxpayers or 
approximately 78 million individuals who file an individual tax return. 
Each participating software company has its own eligibility 
requirements. The eligibility requirements ensure that lower income, 
disadvantaged and under-served taxpayers benefit from the free file 
program with the Free File Alliance, LLC. The provision in the bill was 
intended to ensure that the taxpayers participating in the Free File 
Program were affirmatively consenting to solicitation for other 
products or services. I look forward to working with him to ensure that 
we continue to promote such public-private partnerships.
  Mr. BAUCUS. I agree with Chairman Grassley. It is our intent with the 
Free File provision to protect the integrity of our voluntary tax 
system by providing lower income, disadvantaged and under-served 
taxpayers the ability to meet their filing obligation without 
subjecting themselves to unwanted marketing. I also commit to work with 
Senator Allen as we conference with the House.
  Mr. ALLEN. I thank the chairman and ranking member.


                       continuing care facilities

  Mr. GRAHAM of Florida. Mr. President, I want to thank the chairman 
and ranking member of the Finance Committee, Senators Grassley and 
Baucus, for including a provision that I supported as part of the Tax 
Administration Good Government Act to level the playing field for 
residents of qualified continuing care retirement communities.
  Continuing care retirement communities, or CCRCs, are the oldest form 
of seniors housing in America, dating back to the late 1800s--offering 
a variety of living arrangements and services to accommodate residents 
of all levels of physical ability and health. The goal of a CCRC is to 
accommodate changing lifestyle preferences and health care needs. In 
general, CCRCs make independent living, assisted living, and skilled 
nursing available all on one campus. The CCRC approach offers residents 
the pyschological and financial security of knowing that, should they 
require increased levels of care, it is readily available at one 
location. As a private pay option, CCRCs also play an important role in 
the Nation's long-term care delivery system because very few, if any, 
CCRC residents will ever require Medicaid funding for their long-term 
care.

[[Page S5499]]

  Mr. GRASSLEY. I thank the Senator from Florida for his comments. This 
is a provision that I have also supported. The provision included in 
the bill will go a long way for those seniors who live in the affected 
CCRCs. I also want to clarify one point with Senator Baucus. It is my 
understanding that the purpose of the amendment is to bring the tax 
treatment of those CCRCs described in section 7872(g) into alignment 
with the treatment that has historically been afforded to those CCRCs 
that are not described in section 7872(g). In other words, there is no 
intent to alter the treatment that the IRS has historically provided 
for CCRCs that are not described in section 7872(g). I am committed to 
working with Senator Graham as we move this legislation forward.
  Mr. BAUCUS. I agree with the chairman. There is no intent to alter 
the treatment that the IRS has historically provided for CCRCs that are 
not described in section 7872(g). This is a critical point that could 
affect a large number of seniors. We do not want there to be any 
misunderstanding on this issue since the immediate consequences could 
be significant--with large numbers of seniors potentially having to pay 
additional taxes. I also know that Senator Mikulski has expressed an 
interest in this provision. I give my commitment to both Senators 
Graham and Mikulski to work with them on this provision as we go to 
conference with the House.
  Mr. GRAHAM of Florida. I thank the chairman and ranking member for 
clarifying the intent of this provision.

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