[Congressional Record Volume 164, Number 62 (Tuesday, April 17, 2018)]
[Senate]
[Pages S2219-S2222]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. CORNYN (for himself, Mr. Heller, and Mr. Roberts):
  S. 2689. A bill to provide a taxpayer bill of rights for small 
businesses; 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. 2689

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Small 
     Business Taxpayer Bill of Rights Act of 2018''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Modification of standards for awarding of costs and certain 
              fees.
Sec. 3. Civil damages allowed for reckless or intentional disregard of 
              internal revenue laws.
Sec. 4. Modifications relating to certain offenses by officers and 
              employees in connection with revenue laws.
Sec. 5. Modifications relating to civil damages for unauthorized 
              inspection or disclosure of returns and return 
              information.
Sec. 6. Ban on ex parte discussions.
Sec. 7. Right to independent conference.
Sec. 8. Alternative dispute resolution procedures.
Sec. 9. Increase in monetary penalties for certain unauthorized 
              disclosures of information.
Sec. 10. Ban on raising new issues on appeal.
Sec. 11. Limitation on enforcement of liens against principal 
              residences.

[[Page S2220]]

Sec. 12. Additional provisions relating to mandatory termination for 
              misconduct.
Sec. 13. Review by the Treasury Inspector General for Tax 
              Administration.
Sec. 14. Deduction for expenses relating to certain audits.
Sec. 15. Term limit for National Taxpayer Advocate.
Sec. 16. Release of IRS levy due to economic hardship for business 
              taxpayers.
Sec. 17. Repeal of partial payment requirement on submissions of 
              offers-in-compromise.

     SEC. 2. MODIFICATION OF STANDARDS FOR AWARDING OF COSTS AND 
                   CERTAIN FEES.

       (a) Small Businesses Eligible Without Regard to Net 
     Worth.--Subparagraph (D) of section 7430(c)(4) of the 
     Internal Revenue Code of 1986 is amended by striking ``and'' 
     at the end of clause (i)(II), by striking the period at the 
     end of clause (ii) and inserting ``, and'', and by adding at 
     the end the following new clause:
       ``(iii) in the case of an eligible small business, the net 
     worth limitation in clause (ii) of such section shall not 
     apply.''.
       (b) Eligible Small Business.--Paragraph (4) of section 
     7430(c) of the Internal Revenue Code of 1986 is amended by 
     adding at the end the following new subparagraph:
       ``(F) Eligible small business.--
       ``(i) In general.--For purposes of subparagraph (D)(iii), 
     the term `eligible small business' means, with respect to any 
     proceeding commenced in a taxable year--

       ``(I) a corporation the stock of which is not publicly 
     traded,
       ``(II) a partnership, or
       ``(III) a sole proprietorship,

     if the average annual gross receipts of such corporation, 
     partnership, or sole proprietorship for the 3-taxable-year 
     period preceding such taxable year does not exceed 
     $50,000,000. For purposes of applying the test under the 
     preceding sentence, rules similar to the rules of paragraphs 
     (2) and (3) of section 448(c) shall apply.
       ``(ii) Adjustment for inflation.--In the case of any 
     calendar year after 2018, the $50,000,000 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 such calendar year, determined by 
     substituting `calendar year 2017' for `calendar year 2016' in 
     subparagraph (A)(ii) thereof.

     If any amount as increased under the preceding sentence is 
     not a multiple of $500, such amount shall be rounded to the 
     next lowest multiple of $500..''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to proceedings commenced after the date of the 
     enactment of this Act.

     SEC. 3. CIVIL DAMAGES ALLOWED FOR RECKLESS OR INTENTIONAL 
                   DISREGARD OF INTERNAL REVENUE LAWS.

       (a) Increase in Amount of Damages.--
       (1) In general.--Section 7433(b) of the Internal Revenue 
     Code of 1986 is amended by striking ``$1,000,000 ($100,000, 
     in the case of negligence)'' and inserting ``$5,000,000 
     ($500,000, in the case of negligence)''.
       (2) Adjustment for inflation.--Section 7433 of such Code is 
     amended by adding at the end the following new subsection:
       ``(f) Adjustment for Inflation.--In the case of any 
     calendar year after 2018, the $5,000,000 and $500,000 amounts 
     in subsection (b) shall each be increased by an amount equal 
     to--
       ``(1) such dollar amount, multiplied by
       ``(2) the cost-of-living adjustment determined under 
     section 1(f)(3) for such calendar year, determined by 
     substituting `calendar year 2017' for `calendar year 2016' in 
     subparagraph (A)(ii) thereof.

     If any amount as increased under the preceding sentence is 
     not a multiple of $500, such amount shall be rounded to the 
     next lowest multiple of $500.''.
       (b) Extension of Time To Bring Action.--Section 7433(d)(3) 
     of the Internal Revenue Code of 1986 is amended by striking 
     ``2 years'' and inserting ``5 years''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to actions of employees of the Internal Revenue 
     Service after the date of the enactment of this Act.

     SEC. 4. MODIFICATIONS RELATING TO CERTAIN OFFENSES BY 
                   OFFICERS AND EMPLOYEES IN CONNECTION WITH 
                   REVENUE LAWS.

       (a) Increase in Penalty.--Section 7214 of the Internal 
     Revenue Code of 1986 is amended--
       (1) by striking ``$10,000'' in subsection (a) and inserting 
     ``$25,000'', and
       (2) by striking ``$5,000'' in subsection (b) and inserting 
     ``$10,000''.
       (b) Adjustment for Inflation.--Section 7214 of the Internal 
     Revenue Code of 1986, as amended by subsection (a), is 
     amended by redesignating subsection (c) as subsection (d) and 
     by inserting after subsection (b) the following new 
     subsection:
       ``(c) Adjustment for Inflation.--In the case of any 
     calendar year after 2018, the $25,000 amount in subsection 
     (a) and the $10,000 amount in subsection (b) shall each be 
     increased by an amount equal to--
       ``(1) such dollar amount, multiplied by
       ``(2) the cost-of-living adjustment determined under 
     section 1(f)(3) for such calendar year, determined by 
     substituting `calendar year 2017' for `calendar year 2016' in 
     subparagraph (A)(ii) thereof.

     If any amount as increased under the preceding sentence is 
     not a multiple of $100, such amount shall be rounded to the 
     next lowest multiple of $100.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 5. MODIFICATIONS RELATING TO CIVIL DAMAGES FOR 
                   UNAUTHORIZED INSPECTION OR DISCLOSURE OF 
                   RETURNS AND RETURN INFORMATION.

       (a) Increase in Amount of Damages.--Subparagraph (A) of 
     section 7431(c)(1) of the Internal Revenue Code of 1986 is 
     amended by striking ``$1,000'' and inserting ``$10,000''.
       (b) Adjustment for Inflation.--Section 7431 of the Internal 
     Revenue Code of 1986 is amended by adding at the end the 
     following new subsection:
       ``(i) Adjustment for Inflation.--In the case of any 
     calendar year after 2018, the $10,000 amount in subsection 
     (c)(1)(A) shall be increased by an amount equal to--
       ``(1) such dollar amount, multiplied by
       ``(2) the cost-of-living adjustment determined under 
     section 1(f)(3) for such calendar year, determined by 
     substituting `calendar year 2017' for `calendar year 2016' in 
     subparagraph (A)(ii) thereof.

     If any amount as increased under the preceding sentence is 
     not a multiple of $100, such amount shall be rounded to the 
     next lowest multiple of $100.''.
       (c) Period for Bringing Action.--Subsection (d) of section 
     7431 of the Internal Revenue Code of 1986 is amended by 
     striking ``2 years'' and inserting ``5 years''.
       (d) Effective Date.--The amendment made by this section 
     shall apply to inspections and disclosure occurring on and 
     after the date of the enactment of this Act.

     SEC. 6. BAN ON EX PARTE DISCUSSIONS.

       (a) In General.--Notwithstanding section 1001(a)(4) of the 
     Internal Revenue Service Restructuring and Reform Act of 
     1998, the Internal Revenue Service shall prohibit any ex 
     parte communications between officers in the Internal Revenue 
     Service Office of Appeals and other Internal Revenue Service 
     employees with respect to any matter pending before such 
     officers.
       (b) Termination of Employment for Misconduct.--Subject to 
     subsection (c), the Commissioner of Internal Revenue shall 
     terminate the employment of any employee of the Internal 
     Revenue Service if there is a final administrative or 
     judicial determination that such employee committed any act 
     or omission prohibited under subsection (a) in the 
     performance of the employee's official duties. Such 
     termination shall be a removal for cause on charges of 
     misconduct.
       (c) Determination of Commissioner.--
       (1) In general.--The Commissioner of Internal Revenue may 
     take a personnel action other than termination for an act 
     prohibited under subsection (a).
       (2) Discretion.--The exercise of authority under paragraph 
     (1) shall be at the sole discretion of the Commissioner of 
     Internal Revenue and may not be delegated to any other 
     officer. At the sole discretion of the Commissioner of 
     Internal Revenue, such Commissioner may establish a procedure 
     which will be used to determine whether an individual should 
     be referred to the Commissioner of Internal Revenue for a 
     determination by the Commissioner under paragraph (1).
       (3) No appeal.--Any determination of the Commissioner of 
     Internal Revenue under this subsection may not be appealed in 
     any administrative or judicial proceeding.
       (d) TIGTA Reporting of Termination or Mitigation.--Section 
     7803(d)(1)(E) of the Internal Revenue Code of 1986 is amended 
     by inserting ``or section 6 of the Small Business Taxpayer 
     Bill of Rights Act of 2018'' after ``1998''.

     SEC. 7. RIGHT TO INDEPENDENT CONFERENCE.

       Section 1001 of the Internal Revenue Service Restructuring 
     and Reform Act of 1998 is amended by redesignating subsection 
     (c) as subsection (d) and by inserting after subsection (b) 
     the following new subsection:
       ``(c) Right to Independent Conference.--Under the 
     organization plan of the Internal Revenue Service, a taxpayer 
     shall have the right to a conference with the Internal 
     Revenue Service Office of Appeals which does not include 
     personnel from the Office of Chief Counsel for the Internal 
     Revenue Service or the compliance functions of the Internal 
     Revenue Service unless the taxpayer specifically consents to 
     the participation of such personnel.''.

     SEC. 8. ALTERNATIVE DISPUTE RESOLUTION PROCEDURES.

       (a) In General.--Section 7123 of the Internal Revenue Code 
     of 1986 is amended by adding at the end the following new 
     subsection:
       ``(d) Availability of Dispute Resolutions.--
       ``(1) In general.--The procedures prescribed under 
     subsection (b)(1) and the pilot program established under 
     subsection (b)(2) shall provide that a taxpayer may request 
     mediation or arbitration in any case unless the Secretary has 
     specifically excluded the type of issue involved in such case 
     or the class of cases to which such case belongs as not 
     appropriate for resolution under such subsection. The 
     Secretary shall make any determination that excludes a type 
     of issue or a class of cases public within 5 working days and 
     provide an explanation for each determination.
       ``(2) Independent mediators.--
       ``(A) In general.--The procedures prescribed under 
     subsection (b)(1) shall provide the taxpayer an opportunity 
     to elect to have the mediation conducted by an independent,

[[Page S2221]]

     neutral individual not employed by the Internal Revenue 
     Service Office of Appeals.
       ``(B) Cost and selection.--
       ``(i) In general.--Any taxpayer making an election under 
     subparagraph (A) shall be required--

       ``(I) to share the costs of such independent mediator 
     equally with the Internal Revenue Service Office of Appeals, 
     and
       ``(II) to limit the selection of the mediator to a roster 
     of recognized national or local neutral mediators.

       ``(ii) Exception.--Clause (i)(I) shall not apply to any 
     taxpayer who is an individual or who was a small business in 
     the preceding calendar year if such taxpayer had an adjusted 
     gross income that did 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, in 
     the taxable year preceding the request.
       ``(iii) Small business.--For purposes of clause (ii), the 
     term `small business' has the meaning given such term under 
     section 41(b)(3)(D)(iii).
       ``(3) Availability of process.--The procedures prescribed 
     under subsection (b)(1) and the pilot program established 
     under subsection (b)(2) shall provide the opportunity to 
     elect mediation or arbitration at the time when the case is 
     first filed with the Office of Appeals and at any time before 
     deliberations in the appeal commence.''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 9. INCREASE IN MONETARY PENALTIES FOR CERTAIN 
                   UNAUTHORIZED DISCLOSURES OF INFORMATION.

       (a) In General.--Paragraphs (1), (2), (3), and (4) of 
     section 7213(a) of the Internal Revenue Code of 1986 are each 
     amended by striking ``$5,000'' and inserting ``$10,000''.
       (b) Adjustment for Inflation.--Subsection (a) of section 
     7213 of the Internal Revenue Code of 1986 is amended by 
     adding at the end the following new paragraph:
       ``(6) Adjustment for inflation.--In the case of any 
     calendar year after 2018, the $10,000 amounts in paragraphs 
     (1), (2), (3), and (4) shall each be increased by an amount 
     equal to--
       ``(A) such dollar amount, multiplied by
       ``(B) the cost-of-living adjustment determined under 
     section 1(f)(3) for such calendar year, determined by 
     substituting `calendar year 2017' for `calendar year 2016' in 
     subparagraph (A)(ii) thereof.

     If any amount as increased under the preceding sentence is 
     not a multiple of $100, such amount shall be rounded to the 
     next lowest multiple of $100.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to disclosures made after the date of the 
     enactment of this Act.

     SEC. 10. BAN ON RAISING NEW ISSUES ON APPEAL.

       (a) In General.--Chapter 77 of the Internal Revenue Code of 
     1986 is amended by adding at the end the following new 
     section:

     ``SEC. 7529. PROHIBITION ON INTERNAL REVENUE SERVICE RAISING 
                   NEW ISSUES IN AN INTERNAL APPEAL.

       ``(a) In General.--In reviewing an appeal of any 
     determination initially made by the Internal Revenue Service, 
     the Internal Revenue Service Office of Appeals may not 
     consider or decide any issue that is not within the scope of 
     the initial determination.
       ``(b) Certain Issues Deemed Outside of Scope of 
     Determination.--For purposes of subsection (a), the following 
     matters shall be considered to be not within the scope of a 
     determination:
       ``(1) Any issue that was not raised in a notice of 
     deficiency or an examiner's report which is the subject of 
     the appeal.
       ``(2) Any deficiency in tax which was not included in the 
     initial determination.
       ``(3) Any theory or justification for a tax deficiency 
     which was not considered in the initial determination.
       ``(c) No Inference With Respect to Issues Raised by 
     Taxpayers.--Nothing in this section shall be construed to 
     provide any limitation in addition to any limitations in 
     effect on the date of the enactment of this section on the 
     right of a taxpayer to raise an issue, theory, or 
     justification on an appeal from a determination initially 
     made by the Internal Revenue Service that was not within the 
     scope of the initial determination.''.
       (b) Clerical Amendment.--The table of sections for chapter 
     77 of the Internal Revenue Code of 1986 is amended by adding 
     at the end the following new item:

``Sec. 7529. Prohibition on Internal Revenue Service raising new issues 
              in an internal appeal.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to matters filed or pending with the Internal 
     Revenue Service Office of Appeals on or after the date of the 
     enactment of this Act.

     SEC. 11. LIMITATION ON ENFORCEMENT OF LIENS AGAINST PRINCIPAL 
                   RESIDENCES.

       (a) In General.--Section 7403(a) of the Internal Revenue 
     Code of 1986 is amended--
       (1) by striking ``In any case'' and inserting the 
     following:
       ``(1) In general.--In any case'', and
       (2) by adding at the end the following new paragraph:
       ``(2) Limitation with respect to principal residence.--
       ``(A) In general.--Paragraph (1) shall not apply to any 
     property used as the principal residence of the taxpayer 
     (within the meaning of section 121) unless the Secretary of 
     the Treasury makes a written determination that--
       ``(i) all other property of the taxpayer, if sold, is 
     insufficient to pay the tax or discharge the liability, and
       ``(ii) such action will not create an economic hardship for 
     the taxpayer.
       ``(B) Delegation.--For purposes of this paragraph, the 
     Secretary of the Treasury may not delegate any 
     responsibilities under subparagraph (A) to any person other 
     than--
       ``(i) the Commissioner of Internal Revenue, or
       ``(ii) a district director or assistant district director 
     of the Internal Revenue Service.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to actions filed after the date of the enactment 
     of this Act.

     SEC. 12. ADDITIONAL PROVISIONS RELATING TO MANDATORY 
                   TERMINATION FOR MISCONDUCT.

       (a) Termination of Unemployment for Inappropriate Review of 
     Tax-Exempt Status.--Section 1203(b) of the Internal Revenue 
     Service Restructuring and Reform Act of 1998 (26 U.S.C. 7804 
     note) is amended by striking ``and'' at the end of paragraph 
     (9), by striking the period at the end of paragraph (10) and 
     inserting ``; and'', and by adding at the end the following 
     new paragraph:
       ``(11) in the case of any review of an application for tax-
     exempt status by an organization described in section 501(c) 
     of the Internal Revenue Code of 1986, developing or using any 
     methodology that applies disproportionate scrutiny to any 
     applicant based on the ideology expressed in the name or 
     purpose of the organization.''.
       (b) Mandatory Unpaid Administrative Leave for Misconduct.--
     Paragraph (1) of section 1203(c) of the Internal Revenue 
     Service Restructuring and Reform Act of 1998 (26 U.S.C. 7804 
     note) is amended by adding at the end the following new 
     sentence: ``Notwithstanding the preceding sentence, if the 
     Commissioner of Internal Revenue takes a personnel action 
     other than termination for an act or omission described in 
     subsection (b), the Commissioner shall place the employee on 
     unpaid administrative leave for a period of not less than 90 
     days.''.
       (c) Limitation on Alternative Punishment.--Paragraph (1) of 
     section 1203(c) of the Internal Revenue Service Restructuring 
     and Reform Act of 1998 (26 U.S.C. 7804 note) is amended by 
     striking ``The Commissioner'' and inserting ``Except in the 
     case of an act or omission described in subsection (b)(3)(A), 
     the Commissioner''.

     SEC. 13. REVIEW BY THE TREASURY INSPECTOR GENERAL FOR TAX 
                   ADMINISTRATION.

       (a) Review.--Subsection (k)(1) of section 8D of the 
     Inspector General Act of 1978 (5 U.S.C. App.) is amended--
       (1) in subparagraph (C), by striking ``and'' at the end,
       (2) by redesignating subparagraph (D) as subparagraph (E),
       (3) by inserting after subparagraph (C) the following new 
     subparagraph:
       ``(D) shall--
       ``(i) review any criteria employed by the Internal Revenue 
     Service to select tax returns (including applications for 
     recognition of tax-exempt status) for examination or audit, 
     assessment or collection of deficiencies, criminal 
     investigation or referral, refunds for amounts paid, or any 
     heightened scrutiny or review in order to determine whether 
     the criteria discriminates against taxpayers on the basis of 
     race, religion, or political ideology; and
       ``(ii) consult with the Internal Revenue Service on 
     recommended amendments to such criteria in order to eliminate 
     any discrimination identified pursuant to the review 
     described in clause (i); and'', and
       (4) in subparagraph (E), as so redesignated, by striking 
     ``and (C)'' and inserting ``(C), and (D)''.
       (b) Semiannual Report.--Subsection (g) of section 8D of the 
     Inspector General Act of 1978 (5 U.S.C. App.) is amended by 
     adding at the end the following new paragraph:
       ``(3) Any semiannual report made by the Treasury Inspector 
     General for Tax Administration that is required pursuant to 
     section 5(a) shall include--
       ``(A) a statement affirming that the Treasury Inspector 
     General for Tax Administration has reviewed the criteria 
     described in subsection (k)(1)(D) and consulted with the 
     Internal Revenue Service regarding such criteria; and
       ``(B) a description and explanation of any such criteria 
     that was identified as discriminatory by the Treasury 
     Inspector General for Tax Administration.''.

     SEC. 14. DEDUCTION FOR EXPENSES RELATING TO CERTAIN AUDITS.

       (a) In General.--Subsection (a) of section 62 of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new paragraph:
       ``(22) Expenses relating to certain audits.--The deduction 
     allowed by section 224.''.
       (b) Deduction for Expenses Relating to Certain Audits.--
     Part VII of subchapter B of chapter 1 of the Internal Revenue 
     Code of 1986 is amended by redesignating section 224 as 
     section 225 and by inserting after section 223 the following 
     new section:

     ``SEC. 224. EXPENSES RELATING TO CERTAIN AUDITS.

       ``(a) Allowance of Deduction.--In the case of an 
     individual, there shall be allowed as a deduction for the 
     taxable year an amount equal to so much of the qualified

[[Page S2222]]

     NRP expenses paid or incurred during the taxable year as does 
     not exceed $5,000.
       ``(b) Qualified NRP Expenses.--For purposes of this 
     section, the term `qualified NRP expenses' means amounts 
     which but for subsection (d) would be allowed as a deduction 
     under section 162 or 212(3) in connection with an audit of 
     the taxpayer's return of the tax imposed by this chapter for 
     any taxable year under the National Research Program, but 
     only if such audit results in no increase in the tax 
     liability of the taxpayer for such taxable year.
       ``(c) Denial of Double Benefit.--No deduction shall be 
     allowed under any other provision of this chapter for any 
     amount for which a deduction is allowed under this 
     section.''.
       (c) Clerical Amendment.--The table of sections for part VII 
     of subchapter B of chapter 1 of the Internal Revenue Code of 
     1986 is amended by striking the item relating to section 224 
     and by inserting after the item relating to section 223 the 
     following new items:

``Sec. 224. Expenses relating to certain audits.
``Sec. 225. Cross reference.''.

       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 15. TERM LIMIT FOR NATIONAL TAXPAYER ADVOCATE.

       (a) In General.--Subparagraph (B) of section 7803(c)(1) of 
     the Internal Revenue Code of 1986 is amended by adding at the 
     end the following new clause:
       ``(v) Term.--The term of the National Taxpayer Advocate 
     shall be a 10-year term, beginning with a term to commence on 
     the date which is 18 months after the date of the enactment 
     of the Small Business Taxpayer Bill of Rights Act of 2018. 
     Each subsequent term shall begin on the day after the date on 
     which the previous term expires. The National Taxpayer 
     Advocate may be appointed to serve more than 1 term.''.
       (b) Effective Date.--The term of any individual serving as 
     the National Taxpayer Advocate under section 7803(c) of the 
     Internal Revenue Code of 1986 as of the date of the enactment 
     of this Act shall end as of the day before the date which is 
     18 months after such date of enactment, unless such 
     individual is reappointed as the National Taxpayer Advocate 
     for a subsequent term pursuant to section 7803(c)(1)(B)(v) of 
     such Code.

     SEC. 16. RELEASE OF IRS LEVY DUE TO ECONOMIC HARDSHIP FOR 
                   BUSINESS TAXPAYERS.

       (a) In General.--Subparagraph (D) of section 6343(a)(1) of 
     the Internal Revenue Code of 1986 is amended by striking 
     ``or'' and inserting ``including the financial condition of 
     the taxpayer's viable trade or business, or''.
       (b) Determination of Economic Hardship.--Subsection (a) of 
     section 6343 of the Internal Revenue Code of 1986 is amended 
     by adding at the end the following new paragraph:
       ``(4) Determination of economic hardship to business 
     taxpayer.--In determining whether to release any levy under 
     paragraph (1)(D), the Secretary shall consider--
       ``(A) the economic viability of the business,
       ``(B) the nature and extent of the hardship created by the 
     levy (including whether the taxpayer has exercised ordinary 
     business care and prudence), and
       ``(C) the potential harm to individuals if the business is 
     liquidated.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to levies made after the date of the enactment of 
     this Act.

     SEC. 17. REPEAL OF PARTIAL PAYMENT REQUIREMENT ON SUBMISSIONS 
                   OF OFFERS-IN-COMPROMISE.

       (a) In General.--Section 7122 of the Internal Revenue Code 
     of 1986 is amended by striking subsection (c) and by 
     redesignating subsections (d), (e), (f), and (g) as 
     subsections (c), (d), (e), and (f), respectively.
       (b) Conforming Amendments.--
       (1) Paragraph (3) of section 7122(c) of the Internal 
     Revenue Code of 1986, as redesignated by subsection (a), is 
     amended by inserting ``and'' at the end of subparagraph (A), 
     by striking ``, and'' at the end of subparagraph (B) and 
     inserting a period, and by striking subparagraph (C).
       (2) Section 7122 of such Code, as amended by this section, 
     is amended by adding at the end the following new subsection:
       ``(g) Application of User Fee.--In the case of any assessed 
     tax or other amounts imposed under this title with respect to 
     such tax which is the subject of an offer-in-compromise, such 
     tax or other amounts shall be reduced by any user fee imposed 
     under this title with respect to such offer-in-compromise.''.
       (3) Section 6159(g) of such Code is amended by striking 
     ``section 7122(e)'' and inserting ``section 7122(d)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to offers-in-compromise submitted after the date 
     of the enactment of this Act.

                          ____________________