[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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