[Congressional Record Volume 160, Number 31 (Tuesday, February 25, 2014)]
[Senate]
[Pages S1049-S1050]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
By Mr. CORNYN:
S. 2039. A bill to amend the Internal Revenue Code of 1986 to require
that ITIN applicants submit their application in person at taxpayer
assistance centers, and for other purposes; to the Committee on
Finance.
Mr. CORNYN. Mr. President, I ask unanimous consent that the text of
the bill be printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 2039
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``ITIN Reform Act of 2014''.
SEC. 2. REQUIREMENTS FOR THE ISSUANCE OF ITINS.
(a) In General.--Section 6109 of the Internal Revenue Code
of 1986 is amended by adding at the end the following:
``(i) Special Rules Relating to the Issuance of ITINs.--
``(1) In general.--The Secretary may issue an individual
taxpayer identification number to an individual only if the
requirements of paragraphs (2) and (3) are met.
``(2) In-person application.--The requirements of this
paragraph are met if, with respect to an application for an
individual taxpayer identification number--
``(A) the applicant submits an application in person, using
Form W-7 (or any successor thereof) and including the
required documentation, at a taxpayer assistance center of
the Internal Revenue Service, or
``(B) in the case of an applicant who resides outside of
the United States, the applicant submits the application in
person to an employee of the Internal Revenue Service or a
designee of the Secretary at a United States diplomatic
mission or consular post, together with the required
documentation.
``(3) Initial on-site verification of documentation.--The
requirements of this paragraph are met if, with respect to
each application, an employee of the Internal Revenue Service
at the taxpayer assistance center, or the employee or
designee described in paragraph (2)(B), as the case may be,
conducts an initial verification of the documentation
supporting the application submitted under paragraph (2).
``(4) Required documentation.--For purposes of this
subsection--
``(A) required documentation includes such documentation as
the Secretary may require that proves the individual's
identity and foreign status, and
``(B) the Secretary may only accept original documents.
``(5) Exceptions.--
``(A) Military spouses.--Paragraph (1) shall not apply to
the spouse, or the dependents, without a social security
number of a taxpayer who is a member of the Armed Forces of
the United States.
``(B) Treaty benefits.--Paragraph (1) shall not apply to a
nonresident alien applying for an individual taxpayer
identification number for the purpose of claiming tax treaty
benefits.
``(6) Term.--
``(A) In general.--An individual taxpayer identification
number issued after the date of the enactment of this
subsection shall be valid only for the 5-year period which
includes the taxable year of the individual for which such
number is issued and the 4 succeeding taxable years.
``(B) Renewal of itin.--Such number shall be valid for an
additional 5-year period only
[[Page S1050]]
if it is renewed through an application which satisfies the
requirements under paragraphs (2) and (3).
``(C) Special rule for existing itins.--In the case of an
individual with an individual taxpayer identification number
issued on or before the date of the enactment of this
subsection, such number shall not be valid after the earlier
of--
``(i) the end of the 3-year period beginning on the date of
the enactment of this subsection, or
``(ii) the first taxable year beginning after--
``(I) the date of the enactment of this subsection, and
``(II) any taxable year for which the individual (or, if a
dependent, on which the individual is included) did not make
a return.''.
(b) Interest.--Section 6611 of such Code is amended by
redesignating subsection (h) as subsection (i) and by
inserting after subsection (g) the following new subsection:
``(h) Special Rule Relating to ITINs.--Notwithstanding any
other provision of this section, no interest shall be allowed
or paid to or on behalf of a individual with respect to any
overpayment until 45 days after an individual taxpayer
identification number is issued to the individual.''.
(c) Audit by TIGTA.--Not later than two years after the
date of the enactment of this Act, and every two years
thereafter, the Treasury Inspector General for Tax
Administration shall conduct an audit of the program of the
Internal Revenue Service for the issuance of individual
taxpayer identification numbers pursuant to section 6109(i)
of the Internal Revenue Code of 1986. The report required by
this subsection shall be submitted to the Congress.
(d) Effective Date.--
(1) Subsection (a).--The amendment made by subsection (a)
shall apply to requests for individual taxpayer
identification numbers made after the date of the enactment
of this Act.
(2) Subsection (b).--The amendment made by subsection (b)
shall apply to returns due, claims filed, and refunds paid
after the date of the enactment of this Act.
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