[Congressional Record Volume 164, Number 63 (Wednesday, April 18, 2018)]
[House]
[Pages H3411-H3422]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           TAXPAYER FIRST ACT

  Mr. BRADY of Texas. Mr. Speaker, pursuant to House Resolution 831, I 
call up the bill (H.R. 5444) to amend the Internal Revenue Code of 1986 
to modernize and improve the Internal Revenue Service, and for other 
purposes, and ask for its immediate consideration in the House.
  The Clerk read the title of the bill.
  The SPEAKER pro tempore. Pursuant to House Resolution 831, the 
amendment in the nature of a substitute recommended by the Committee on 
Ways and Means, printed in the bill, is adopted, and the bill, as 
amended, is considered read.
  The text of the bill, as amended, is as follows:

                               H.R. 5444

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

     SECTION 1. SHORT TITLE; ETC.

       (a) Short Title.--This Act may be cited as the ``Taxpayer 
     First Act''.
       (b) Amendment of 1986 Code.--Except as otherwise expressly 
     provided, whenever in this Act an amendment or repeal is 
     expressed in terms of an amendment to, or repeal of, a 
     section or other provision, the reference shall be considered 
     to be made to a section or other provision of the Internal 
     Revenue Code of 1986.
       (c) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; etc.

                  TITLE I--INDEPENDENT APPEALS PROCESS

Sec. 101. Establishment of Internal Revenue Service Independent Office 
              of Appeals.

                       TITLE II--IMPROVED SERVICE

Sec. 201. Comprehensive customer service strategy.
Sec. 202. IRS Free File Program.
Sec. 203. Low-income exception for payments otherwise required in 
              connection with a submission of an offer-in-compromise.

                    TITLE III--SENSIBLE ENFORCEMENT

Sec. 301. Internal Revenue Service seizure requirements with respect to 
              structuring transactions.
Sec. 302. Exclusion of interest received in action to recover property 
              seized by the Internal Revenue Service based on 
              structuring transaction.
Sec. 303. Clarification of equitable relief from joint liability.
Sec. 304. Modification of procedures for issuance of third-party 
              summons.
Sec. 305. Establishment of income threshold for referral to private 
              debt collection.
Sec. 306. Reform of notice of contact of third parties.
Sec. 307. Modification of authority to issue designated summons.
Sec. 308. Limitation on access of non-Internal Revenue Service 
              employees to returns and return information.

                 TITLE IV--ORGANIZATIONAL MODERNIZATION

Sec. 401. Modification of title of Commissioner of Internal Revenue and 
              related officials.
Sec. 402. Office of the National Taxpayer Advocate.
Sec. 403. Elimination of IRS Oversight Board.
Sec. 404. Modernization of Internal Revenue Service organizational 
              structure.

                           TITLE V--TAX COURT

Sec. 501. Disqualification of judge or magistrate judge of the Tax 
              Court.
Sec. 502. Opinions and judgments.
Sec. 503. Title of special trial judge changed to magistrate judge of 
              the Tax Court.
Sec. 504. Repeal of deadwood related to Board of Tax Appeals.

                  TITLE I--INDEPENDENT APPEALS PROCESS

     SEC. 101. ESTABLISHMENT OF INTERNAL REVENUE SERVICE 
                   INDEPENDENT OFFICE OF APPEALS.

       (a) In General.--Section 7803 is amended by adding at the 
     end the following new subsection:
       ``(e) Independent Office of Appeals.--
       ``(1) Establishment.--There is established in the Internal 
     Revenue Service an office to be known as the `Internal 
     Revenue Service Independent Office of Appeals'.
       ``(2) Chief of appeals.--
       ``(A) In general.--The Internal Revenue Service Independent 
     Office of Appeals shall be under the supervision and 
     direction of an official to be known as the `Chief of 
     Appeals'. The Chief of Appeals shall report directly to the 
     Administrator of the Internal Revenue Service and shall be 
     entitled to compensation at the same rate as the highest rate 
     of basic pay established for the Senior Executive Service 
     under section 5382 of title 5, United States Code.
       ``(B) Appointment.--The Chief of Appeals shall be appointed 
     by the Administrator of the Internal Revenue Service without 
     regard to the provisions of title 5, United States Code, 
     relating to appointments in the competitive service or the 
     Senior Executive Service.
       ``(C) Qualifications.--An individual appointed under 
     subparagraph (B) shall have experience and expertise in--
       ``(i) administration of, and compliance with, Federal tax 
     laws,
       ``(ii) a broad range of compliance cases, and
       ``(iii) management of large service organizations.
       ``(3) Purposes and duties of office.--It shall be the 
     function of the Internal Revenue Service Independent Office 
     of Appeals to resolve Federal tax controversies without 
     litigation on a basis which--
       ``(A) is fair and impartial to both the Government and the 
     taxpayer,
       ``(B) promotes a consistent application and interpretation 
     of, and voluntary compliance with, the Federal tax laws, and
       ``(C) enhances public confidence in the integrity and 
     efficiency of the Internal Revenue Service.
       ``(4) Right of appeal.--The resolution process described in 
     paragraph (3) shall be generally available to all taxpayers.
       ``(5) Limitation on designation of cases as not eligible 
     for referral to independent office of appeals.--
       ``(A) In general.--If any taxpayer which is in receipt of 
     notice of deficiency authorized

[[Page H3412]]

     under section 6212 requests referral to the Internal Revenue 
     Service Independent Office of Appeals and such request is 
     denied, the Administrator of the Internal Revenue Service 
     shall provide such taxpayer a written notice which--
       ``(i) provides a detailed description of the facts 
     involved, the basis for the decision to deny the request, and 
     a detailed explanation of how the basis of such decision 
     applies to such facts, and
       ``(ii) describes the procedures proscribed under 
     subparagraph (C) for protesting the decision to deny the 
     request.
       ``(B) Report to congress.--The Administrator of the 
     Internal Revenue Service shall submit a written report to 
     Congress on an annual basis which includes the number of 
     requests described in subparagraph (A) which were denied and 
     the reasons (described by category) that such requests were 
     denied.
       ``(C) Procedures for protesting denial of request.--The 
     Administrator of the Internal Revenue Service shall prescribe 
     procedures for protesting to the Administrator of the 
     Internal Revenue Service (personally and not through any 
     delegate) a denial of a request described in subparagraph 
     (A).
       ``(D) Not applicable to frivolous positions.--This 
     paragraph shall not apply to a request for referral to the 
     Internal Revenue Service Independent Office of Appeals which 
     is denied on the basis that the issue involved is a frivolous 
     position (within the meaning of section 6702(c)).
       ``(6) Staff.--
       ``(A) In general.--All personnel in the Internal Revenue 
     Service Independent Office of Appeals shall report to the 
     Chief of Appeals.
       ``(B) Access to staff of office of the chief counsel.--The 
     Chief of Appeals shall have authority to obtain legal 
     assistance and advice from the staff of the Office of the 
     Chief Counsel. The Chief Counsel shall ensure that such 
     assistance and advice is provided by staff of the Office of 
     the Chief Counsel who were not involved in the case with 
     respect to which such assistance and advice is sought and who 
     are not involved in preparing such case for litigation.
       ``(7) Access to case files.--
       ``(A) In general.--In the case of any specified taxpayer 
     with respect to which a conference with the Internal Revenue 
     Service Independent Office of Appeals has been scheduled, the 
     Chief of Appeals shall ensure that such taxpayer is provided 
     access to the nonprivileged portions of the case file on 
     record regarding the disputed issues (other than documents 
     provided by the taxpayer to the Internal Revenue Service) not 
     later than 10 days before the date of such conference.
       ``(B) Taxpayer election to expedite conference.--If the 
     taxpayer so elects, subparagraph (A) shall be applied by 
     substituting `the date of such conference' for `10 days 
     before the date of such conference'.
       ``(C) Specified taxpayer.--For purposes of this paragraph--
       ``(i) In general.--The term `specified taxpayer' means--

       ``(I) in the case of any taxpayer who is a natural person, 
     a taxpayer whose adjusted gross income does not exceed 
     $400,000, and
       ``(II) in the case of any other taxpayer, a taxpayer whose 
     gross receipts do not exceed $5,000,000.

       ``(ii) Aggregation rule.--Rules similar to the rules of 
     section 448(c)(2) shall apply for purposes of clause 
     (i)(II).''.
       (b) Conforming Amendments.--
       (1) The following provisions are each amended by striking 
     ``Internal Revenue Service Office of Appeals'' and inserting 
     ``Internal Revenue Service Independent Office of Appeals'':
       (A) Section 6015(c)(4)(B)(ii)(I).
       (B) Section 6320(b)(1).
       (C) Subsections (b)(1) and (d)(3) of section 6330.
       (D) Section 6603(d)(3)(B).
       (E) Section 6621(c)(2)(A)(i).
       (F) Section 7122(e)(2).
       (G) Subsections (a), (b)(1), (b)(2), and (c)(1) of section 
     7123.
       (H) Subsections (c)(7)(B)(i, and (g)(2)(A) of section 7430.
       (I) Section 7522(b)(3).
       (J) Section 7612(c)(2)(A).
       (2) Section 7430(c)(2) is amended by striking ``Internal 
     Revenue Service Office of Appeals'' each place it appears and 
     inserting ``Internal Revenue Service Independent Office of 
     Appeals''.
       (3) The heading of section 6330(d)(3) is amended by 
     inserting ``Independent'' after ``IRS''.
       (c) Other References.--Any reference in any provision of 
     law, or regulation or other guidance, to the Internal Revenue 
     Service Office of Appeals shall be treated as a reference to 
     the Internal Revenue Service Independent Office of Appeals.
       (d) Savings Provisions.--Rules similar to the rules of 
     paragraphs (2) through (6) of section 1001(b) of the Internal 
     Revenue Service Restructuring and Reform Act of 1998 shall 
     apply for purposes of this section (and the amendments made 
     by this section).
       (e) Effective Date.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendments made by this section shall take 
     effect on the date of the enactment of this Act.
       (2) Access to case files.--Section 7803(e)(7) of the 
     Internal Revenue Code of 1986, as added by subsection (a), 
     shall apply to conferences occurring after the date which is 
     1 year after the date of the enactment of this Act.

                       TITLE II--IMPROVED SERVICE

     SEC. 201. COMPREHENSIVE CUSTOMER SERVICE STRATEGY.

       (a) In General.--Not later than the date which is 1 year 
     after the date of the enactment of this Act, the Secretary of 
     the Treasury, after consultation with the National Taxpayer 
     Advocate, shall submit to Congress a written comprehensive 
     customer service strategy for the Internal Revenue Service. 
     Such strategy shall include--
       (1) a plan to provide assistance to taxpayers that is 
     secure, designed to meet reasonable taxpayer expectations, 
     and adopts appropriate best practices of customer service 
     provided in the private sector, including online services, 
     telephone call back services, and training of employees 
     providing customer services,
       (2) a thorough assessment of the services that the Internal 
     Revenue Service can co-locate with other Federal services or 
     offer as self-service options,
       (3) proposals to improve Internal Revenue Service customer 
     service in the short term (the current and following fiscal 
     year), medium term (approximately 3 to 5 fiscal years), and 
     long term (approximately 10 fiscal years),
       (4) a plan to update guidance and training materials for 
     customer service employees of the Internal Revenue Service, 
     including the Internal Revenue Manual, to reflect such 
     strategy, and
       (5) identified metrics and benchmarks for quantitatively 
     measuring the progress of the Internal Revenue Service in 
     implementing such strategy.
       (b) Updated Guidance and Training Materials.--Not later 
     than 2 years after the date of the enactment of this Act, the 
     Secretary of the Treasury shall make available the updated 
     guidance and training materials described in subsection 
     (a)(4) (including the Internal Revenue Manual). Such updated 
     guidance and training materials (including the Internal 
     Revenue Manual) shall be written in a manner so as to be 
     easily understood by customer service employees of the 
     Internal Revenue Service and shall provide clear 
     instructions.

     SEC. 202. IRS FREE FILE PROGRAM.

       (a) In General.--
       (1) The Secretary of the Treasury, or the Secretary's 
     delegate, shall continue to operate the IRS Free File Program 
     as established by the Internal Revenue Service and published 
     in the Federal Register on November 4, 2002 (67 Fed. Reg. 
     67247), including any subsequent agreements and governing 
     rules established pursuant thereto.
       (2) The IRS Free File Program shall continue to provide 
     free commercial-type online individual income tax preparation 
     and electronic filing services to the lowest 70 percent of 
     taxpayers by adjusted gross income. The number of taxpayers 
     eligible to receive such services each year shall be 
     calculated by the Internal Revenue Service annually based on 
     prior year aggregate taxpayer adjusted gross income data.
       (3) In addition to the services described in paragraph (2), 
     and in the same manner, the IRS Free File Program shall 
     continue to make available to all taxpayers (without regard 
     to income) a basic, online electronic fillable forms utility.
       (4) The IRS Free File Program shall continue to work 
     cooperatively with the private sector to provide the free 
     individual income tax preparation and the electronic filing 
     services described in paragraphs (2) and (3).
       (5) The IRS Free File Program shall work cooperatively with 
     State government agencies to enhance and expand the use of 
     the program to provide needed benefits to the taxpayer while 
     reducing the cost of processing returns.
       (b) Innovations.--The Secretary of the Treasury, or the 
     Secretary's delegate, shall work with the private sector 
     through the IRS Free File Program to identify and implement, 
     consistent with applicable law, innovative new program 
     features to improve and simplify the taxpayer's experience 
     with completing and filing individual income tax returns 
     through voluntary compliance.

     SEC. 203. LOW-INCOME EXCEPTION FOR PAYMENTS OTHERWISE 
                   REQUIRED IN CONNECTION WITH A SUBMISSION OF AN 
                   OFFER-IN-COMPROMISE.

       (a) In General.--Section 7122(c) is amended by adding at 
     the end the following new paragraph:
       ``(3) Exception for low-income taxpayers.--Paragraph (1), 
     and any user fee otherwise required in connection with the 
     submission of an offer-in-compromise, shall not apply to any 
     offer-in-compromise with respect to a taxpayer who is an 
     individual with adjusted gross income, as determined for the 
     most recent taxable year for which such information is 
     available, which does not exceed 250 percent of the 
     applicable poverty level (as determined by the Secretary).''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to offers-in-compromise submitted after the date 
     of the enactment of this Act.

                    TITLE III--SENSIBLE ENFORCEMENT

     SEC. 301. INTERNAL REVENUE SERVICE SEIZURE REQUIREMENTS WITH 
                   RESPECT TO STRUCTURING TRANSACTIONS.

       Section 5317(c)(2) of title 31, United States Code, is 
     amended--
       (1) by striking ``Any property'' and inserting the 
     following:
       ``(A) In general.--Any property''; and
       (2) by adding at the end the following:
       ``(B) Internal revenue service seizure requirements with 
     respect to structuring transactions.--
       ``(i) Property derived from an illegal source.--Property 
     may only be seized by the Internal Revenue Service pursuant 
     to subparagraph (A) by reason of a claimed violation of 
     section 5324 if the property to be seized was derived from an 
     illegal source or the funds were structured for the purpose 
     of concealing the violation of a criminal law or regulation 
     other than section 5324.
       ``(ii) Notice.--Not later than 30 days after property is 
     seized by the Internal Revenue Service pursuant to 
     subparagraph (A), the Internal Revenue Service shall--

[[Page H3413]]

       ``(I) make a good faith effort to find all persons with an 
     ownership interest in such property; and
       ``(II) provide each such person with a notice of the 
     seizure and of the person's rights under clause (iv).

       ``(iii) Extension of notice under certain circumstances.--
     The Internal Revenue Service may apply to a court of 
     competent jurisdiction for one 30-day extension of the notice 
     requirement under clause (ii) if the Internal Revenue Service 
     can establish probable cause of an imminent threat to 
     national security or personal safety necessitating such 
     extension.
       ``(iv) Post-seizure hearing.--If a person with a property 
     interest in property seized pursuant to subparagraph (A) by 
     the Internal Revenue Service requests a hearing by a court of 
     competent jurisdiction within 30 days after the date on which 
     notice is provided under subclause (ii), such property shall 
     be returned unless the court holds an adversarial hearing and 
     finds within 30 days of such request (or such longer period 
     as the court may provide, but only on request of an 
     interested party) that there is probable cause to believe 
     that there is a violation of section 5324 involving such 
     property and probable cause to believe that the property to 
     be seized was derived from an illegal source or the funds 
     were structured for the purpose of concealing the violation 
     of a criminal law or regulation other than section 5324.''.

     SEC. 302. EXCLUSION OF INTEREST RECEIVED IN ACTION TO RECOVER 
                   PROPERTY SEIZED BY THE INTERNAL REVENUE SERVICE 
                   BASED ON STRUCTURING TRANSACTION.

       (a) In General.--Part III of subchapter B of chapter 1 is 
     amended by inserting before section 140 the following new 
     section:

     ``SEC. 139G. INTEREST RECEIVED IN ACTION TO RECOVER PROPERTY 
                   SEIZED BY THE INTERNAL REVENUE SERVICE BASED ON 
                   STRUCTURING TRANSACTION.

       ``Gross income shall not include any interest received from 
     the Federal Government in connection with an action to 
     recover property seized by the Internal Revenue Service 
     pursuant to section 5317(c)(2) of title 31, United States 
     Code, by reason of a claimed violation of section 5324 of 
     such title.''.
       (b) Clerical Amendment.--The table of sections for part III 
     of subchapter B of chapter 1 is amended by inserting before 
     the item relating to section 140 the following new item:

``Sec. 139G. Interest received in action to recover property seized by 
              the Internal Revenue Service based on structuring 
              transaction.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to interest received on or after the date of the 
     enactment of this Act.

     SEC. 303. CLARIFICATION OF EQUITABLE RELIEF FROM JOINT 
                   LIABILITY.

       (a) In General.--Section 6015 is amended--
       (1) in subsection (e), by adding at the end the following 
     new paragraph:
       ``(7) Standard and scope of review.--Any review of a 
     determination made under this section shall be reviewed de 
     novo by the Tax Court and shall be based upon--
       ``(A) the administrative record established at the time of 
     the determination, and
       ``(B) any additional newly discovered or previously 
     unavailable evidence.'', and
       (2) by amending subsection (f) to read as follows:
       ``(f) Equitable Relief.--
       ``(1) In general.--Under procedures prescribed by the 
     Secretary, if--
       ``(A) taking into account all the facts and circumstances, 
     it is inequitable to hold the individual liable for any 
     unpaid tax or any deficiency (or any portion of either), and
       ``(B) relief is not available to such individual under 
     subsection (b) or (c),
     the Secretary may relieve such individual of such liability.
       ``(2) Limitation.--A request for equitable relief under 
     this subsection may be made with respect to any portion of 
     any liability that--
       ``(A) has not been paid, provided that such request is made 
     before the expiration of the applicable period of limitation 
     under section 6502, or
       ``(B) has been paid, provided that such request is made 
     during the period in which the individual could submit a 
     timely claim for refund or credit of such payment.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to petitions or requests filed or pending on or 
     after the date of the enactment of this Act.

     SEC. 304. MODIFICATION OF PROCEDURES FOR ISSUANCE OF THIRD-
                   PARTY SUMMONS.

       (a) In General.--Section 7609(f) is amended by adding at 
     the end the following flush sentence:
     ``The Secretary shall not issue any summons described in the 
     preceding sentence unless the information sought to be 
     obtained is narrowly tailored to information that pertains to 
     the failure (or potential failure) of the person or group or 
     class of persons referred to in paragraph (2) to comply with 
     one or more provisions of the internal revenue law which have 
     been identified for purposes of such paragraph.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to summonses served after the date of the 
     enactment of this Act.

     SEC. 305. ESTABLISHMENT OF INCOME THRESHOLD FOR REFERRAL TO 
                   PRIVATE DEBT COLLECTION.

       (a) In General.--Section 6306(d)(3) is amended by striking 
     ``or'' at the end of subparagraph (C), by adding ``or'' at 
     the end of subparagraph (D), and by inserting after 
     subparagraph (D) the following new subparagraph:
       ``(E) in the case of a tax receivable which is identified 
     by the Secretary (or the Secretary's delegate) during the 
     period beginning on the date which is 180 days after the date 
     of the enactment of this Act and ending on December 31, 2019, 
     a taxpayer who is an individual with adjusted gross income, 
     as determined for the most recent taxable year for which such 
     information is available, which does not exceed 250 percent 
     of the applicable poverty level (as determined by the 
     Secretary),''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to tax receivables identified by the Secretary 
     (or the Secretary's delegate) after the date which is 180 
     days after the date of the enactment of this Act.

     SEC. 306. REFORM OF NOTICE OF CONTACT OF THIRD PARTIES.

       (a) In General.--Section 7602(c)(1) is amended to read as 
     follows:
       ``(1) General notice.--An officer or employee of the 
     Internal Revenue Service may not contact any person other 
     than the taxpayer with respect to the determination or 
     collection of the tax liability of such taxpayer unless such 
     contact occurs during a period (not greater than 1 year) 
     which is specified in a notice which--
       ``(A) informs the taxpayer that contacts with persons other 
     than the taxpayer are intended to be made during such period, 
     and
       ``(B) except as otherwise provided by the Secretary, is 
     provided to the taxpayer not later than 45 days before the 
     beginning of such period.
     Nothing in the preceding sentence shall prevent the issuance 
     of notices to the same taxpayer with respect to the same tax 
     liability with periods specified therein that, in the 
     aggregate, exceed 1 year. A notice shall not be issued under 
     this paragraph unless there is an intent at the time such 
     notice is issued to contact persons other than the taxpayer 
     during the period specified in such notice. The preceding 
     sentence shall not prevent the issuance of a notice if the 
     requirement of such sentence is met on the basis of the 
     assumption that the information sought to be obtained by such 
     contact will not be obtained by other means before such 
     contact.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to notices provided, and contacts of persons 
     made, after the date which is 45 days after the date of the 
     enactment of this Act.

     SEC. 307. MODIFICATION OF AUTHORITY TO ISSUE DESIGNATED 
                   SUMMONS.

       (a) In General.--Clause (i) of section 6503(j)(2)(A) is 
     amended to read as follows:
       ``(i) the issuance of such summons is preceded by a review 
     and written approval of such issuance by the Administrator of 
     the relevant operating division of the Internal Revenue 
     Service and the Chief Counsel which--

       ``(I) states facts clearly establishing that the Secretary 
     has made reasonable requests for the information that is the 
     subject of the summons, and
       ``(II) is attached to such summons,''.

       (b) Establishment That Reasonable Requests for Information 
     Were Made.--Subsection (j) of section 6503 is amended by 
     adding at the end the following new paragraph:
       ``(4) Establishment that reasonable requests for 
     information were made.--In any court proceeding described in 
     paragraph (3), the Secretary shall establish that reasonable 
     requests were made for the information that is the subject of 
     the summons.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to summonses issued after the date of the 
     enactment of this Act.

     SEC. 308. LIMITATION ON ACCESS OF NON-INTERNAL REVENUE 
                   SERVICE EMPLOYEES TO RETURNS AND RETURN 
                   INFORMATION.

       (a) In General.--Section 7602 is amended by adding at the 
     end the following new subsection:
       ``(f) Limitation on Access of Persons Other Than Internal 
     Revenue Service Officers and Employees.--The Secretary shall 
     not, under the authority of section 6103(n), provide any 
     books, papers, records, or other data obtained pursuant to 
     this section to any person authorized under section 6103(n), 
     except when such person requires such information for the 
     sole purpose of providing expert evaluation and assistance to 
     the Internal Revenue Service. No person other than an officer 
     or employee of the Internal Revenue Service or the Office of 
     Chief Counsel may, on behalf of the Secretary, question a 
     witness under oath whose testimony was obtained pursuant to 
     this section.''.
       (b) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendment made by this section shall take effect on the date 
     of the enactment of this Act.
       (2) Application to contracts in effect.--The amendment made 
     by this section shall apply to any contract in effect under 
     section 6103(n) of the Internal Revenue Code of 1986, 
     pursuant to temporary Treasury Regulation section 301.7602-1T 
     proposed in Internal Revenue Bulletin 2014-28, Treasury 
     Regulation section 301.7602-1(b)(3), or any similar or 
     successor regulation, that is in effect on the date of the 
     enactment of this Act.

                 TITLE IV--ORGANIZATIONAL MODERNIZATION

     SEC. 401. MODIFICATION OF TITLE OF COMMISSIONER OF INTERNAL 
                   REVENUE AND RELATED OFFICIALS.

       (a) In General.--Section 7803(a)(1)(A) is amended by 
     striking ``Commissioner of Internal Revenue'' and inserting 
     ``Administrator of the Internal Revenue Service''.
       (b) Conforming Amendments Related to Section 7803.--
       (1) Subsections (a)(1)(B), (a)(1)(C), (b)(3), (c)(1)(B)(i), 
     and (c)(1)(B)(ii) of section 7803 are each amended by 
     striking ``Commissioner of Internal Revenue'' and inserting 
     ``Administrator of the Internal Revenue Service''.
       (2) Section 7803(b)(2)(A) is amended by striking 
     ``Commissioner's'' and inserting ``Administrator's''.
       (3) Subsections (a)(1)(D), (a)(1)(E), (a)(2), (a)(3), 
     (a)(4), (b)(2)(A), (b)(2)(D), (b)(3),

[[Page H3414]]

     (c)(2)(B)(iii), (c)(2)(C)(iv), and (c)(3) of section 7803, as 
     amended by the preceding paragraphs of this subsection, are 
     amended by striking ``Commissioner'' each place it appears 
     therein and inserting ``Administrator''.
       (4) The heading of section 7803 is amended by striking 
     ``commissioner of internal revenue'' and inserting 
     ``administrator of the internal revenue service''.
       (5) The heading of section 7803(a) is amended by striking 
     ``Commissioner of Internal Revenue'' and inserting 
     ``Administrator of the Internal Revenue Service''.
       (6) The heading of section 7803(c)(3) is amended by 
     striking ``Commissioner'' and inserting ``Administrator''.
       (7) The table of sections for subchapter A of chapter 80 is 
     amended by striking the item relating to section 7803 and 
     inserting the following new item:

``Sec. 7803. Administrator of the Internal Revenue Service; other 
              officials.''.

       (c) Other Conforming Amendments to the Internal Revenue 
     Code of 1986.--
       (1) Section 6307(c) is amended by striking ``Commissioner 
     of Internal Revenue'' and inserting ``Administrator of the 
     Internal Revenue Service''.
       (2) Section 6673(a)(2)(B) is amended by striking 
     ``Commissioner of Internal Revenue'' and inserting 
     ``Administrator of the Internal Revenue Service''.
       (3) Section 6707(c) is amended by striking ``Commissioner'' 
     and inserting ``Administrator''.
       (4) Section 6707A(d) is amended--
       (A) in paragraph (1), by striking ``Commissioner of 
     Internal Revenue'' and inserting ``Administrator of the 
     Internal Revenue Service'', and
       (B) in paragraph (3), by striking ``Commissioner'' each 
     place it appears and inserting ``Administrator''.
       (5)(A) Subsections (a) and (g) of section 7345 are each 
     amended by striking ``Commissioner of Internal Revenue'' and 
     inserting ``Administrator of the Internal Revenue Service''.
       (B) Section 7345(g) is amended--
       (i) by striking ``Deputy Commissioner for Services and 
     Enforcement'' and inserting ``Deputy Administrator for 
     Services and Enforcement'', and
       (ii) by striking ``Commissioner of an operating division'' 
     and inserting ``Administrator of an operating division''.
       (C) Subsections (c)(1), (d) and (e)(1) of section 7345 are 
     each amended by striking ``Commissioner'' each place it 
     appears therein and inserting ``Administrator''.
       (6) Section 7435(e) is amended by striking ``Commissioner'' 
     each place it appears therein and inserting 
     ``Administrator''.
       (7) Section 7409(a)(2)(B) is amended by striking 
     ``Commissioner of Internal Revenue'' and inserting 
     ``Administrator of the Internal Revenue Service''.
       (8) Section 7608(c) is amended--
       (A) in paragraph (1), by striking ``the Commissioner of 
     Internal Revenue (or, if designated by the Commissioner, the 
     Deputy Commissioner or an Assistant Commissioner of Internal 
     Revenue)'' and inserting ``the Administrator of the Internal 
     Revenue Service (or, if designated by the Administrator, the 
     Deputy Administrator or an Assistant Administrator of the 
     Internal Revenue Service)'', and
       (B) in paragraph (2) by striking ``Commissioner'' and 
     inserting ``Administrator''.
       (9) Section 7611(b)(3)(C) is amended by striking ``regional 
     commissioner'' and inserting ``regional administrator''.
       (10) Section 7701(a)(13) is amended to read as follows:
       ``(13) Administrator.--The term `Administrator', except 
     where the context clearly indicates otherwise, means the 
     Administrator of the Internal Revenue Service.''.
       (11)(A) Section 7804(a) is amended by striking 
     ``Commissioner of Internal Revenue'' and inserting 
     ``Administrator of the Internal Revenue Service''.
       (B) Subsections (a), (b)(1), and (b)(2) of section 7804(a), 
     as amended by subparagraph (A), are each amended by striking 
     ``Commissioner'' each place it appears therein and inserting 
     ``Administrator''.
       (12) Section 7811(c)(1) is amended by striking ``the 
     Commissioner of Internal Revenue, or the Deputy Commissioner 
     of Internal Revenue'' and inserting ``the Administrator of 
     the Internal Revenue Service, or the Deputy Commissioner of 
     the Internal Revenue Service''.
       (d) Amendments to Section 8D of the Inspector General Act 
     of 1978.--
       (1) Subsections (g)(2), (k)(1)(C), (l)(1), and (l)(2)(A) of 
     section 8D of the Inspector General Act of 1978 are each 
     amended by striking ``Commissioner of Internal Revenue'' and 
     inserting ``Administrator of the Internal Revenue Service''.
       (2) Section 8D(l)(2)(B) of such Act is amended by striking 
     ``Commissioner'' each place it appears therein and inserting 
     ``Administrator''.
       (e) Other References.--Any reference in any provision of 
     law, or regulation or other guidance, to the Commissioner of 
     Internal Revenue, or to any Deputy or Assistant Commissioner 
     of Internal Revenue, or to a Commissioner of any division or 
     region of the Internal Revenue Service, shall be treated as a 
     reference to the Administrator of the Internal Revenue 
     Service, or to the appropriate Deputy or Assistant 
     Administrator of the Internal Revenue Service, or to the 
     appropriate Administrator of such division or region, 
     respectively.
       (f) Continuity.--In the case of any individual appointed by 
     the President, by and with the advice and consent of the 
     Senate, as Commissioner of Internal Revenue under section 
     7803(a)(1)(A) of the Internal Revenue Code of 1986, and 
     serving in such position immediately before the date of the 
     enactment of this Act, the amendments made by this section 
     shall be construed as changing the title of such individual 
     and shall not be construed to--
       (1) require the reappoint of such individual under such 
     section, or
       (2) alter the remaining term of such person under section 
     7803(a)(1)(B).

     SEC. 402. OFFICE OF THE NATIONAL TAXPAYER ADVOCATE.

       (a) Taxpayer Advocate Directives.--
       (1) In general.--Section 7803(c) is amended by adding at 
     the end the following new paragraph:
       ``(5) Taxpayer advocate directives.--In the case of any 
     Taxpayer Advocate Directive issued by the National Taxpayer 
     Advocate pursuant to a delegation of authority from the 
     Administrator of the Internal Revenue Service--
       ``(A) the Administrator or a Deputy Administrator shall 
     modify, rescind, or ensure compliance with such directive not 
     later than 90 days after the issuance of such directive, and
       ``(B) in the case of any directive which is modified or 
     rescinded by a Deputy Administrator, the National Taxpayer 
     Advocate may (not later than 90 days after such modification 
     or rescission) appeal to the Administrator and the 
     Administrator shall (not later than 90 days after such appeal 
     is made) ensure compliance with such directive as issued by 
     the National Taxpayer Advocate or provide the National 
     Taxpayer Advocate with a detailed description of the reasons 
     for any modification or rescission made or upheld by the 
     Administrator pursuant to such appeal.''.
       (2) Report to certain committees of congress regarding 
     directives.--Section 7803(c)(2)(B)(ii) is amended by 
     redesignating subclauses (VIII) through (XI) as subclauses 
     (IX) through (XII), respectively, and by inserting after 
     subclause (VII) the following new subclause:

       ``(VIII) identify any Taxpayer Advocate Directive which was 
     not honored by the Internal Revenue Service in a timely 
     manner, as specified under paragraph (5);''.

       (b) National Taxpayer Advocate Annual Reports to 
     Congress.--
       (1) Inclusion of most serious taxpayer problems.--Section 
     7803(c)(2)(B)(ii)(III) is amended by striking ``at least 20'' 
     and inserting ``the 10''.
       (2) Coordination with treasury inspector general for tax 
     administration.--Section 7803(c)(2) is amended by adding at 
     the end the following new subparagraph: .
       ``(E) Coordination with treasury inspector general for tax 
     administration.--Before beginning any research or study, the 
     National Taxpayer Advocate shall coordinate with the Treasury 
     Inspector General for Tax Administration to ensure that the 
     National Taxpayer Advocate does not duplicate any action that 
     the Treasury Inspector General for Tax Administration has 
     already undertaken or has a plan to undertake.''.
       (3) Statistical support.--
       (A) In general.--Section 6108 is amended by adding at the 
     end the following new subsection:
       ``(d) Statistical Support for National Taxpayer Advocate.--
     The Secretary shall, upon request of the National Taxpayer 
     Advocate, provide the National Taxpayer Advocate with 
     statistical support in connection with the preparation by the 
     National Taxpayer Advocate of the annual report described in 
     section 7803(c)(2)(B)(ii). Such statistical support shall 
     include statistical studies, compilations, and the review of 
     information provided by the National Taxpayer Advocate for 
     statistical validity and sound statistical methodology.''.
       (B) Disclosure of review.--Section 7803(c)(2)(B)(ii), as 
     amended by subsection (a), is amended by redesignating 
     subclause (XII) as subclause (XIII) and by inserting after 
     subclause (XI) the following new subclause:

       ``(XII) with respect to any statistical information 
     included in such report, include a statement of whether such 
     statistical information was reviewed or provided by the 
     Secretary under section 6108(d) and, if so, whether the 
     Secretary determined such information to be statistically 
     valid and based on sound statistical methodology.''.

       (C) Conforming amendment.--Section 7803(c)(2)(B)(iii) is 
     amended by adding at the end the following: ``The preceding 
     sentence shall not apply with respect to statistical 
     information provided to the Secretary for review, or received 
     from the Secretary, under section 6108(d).''.
       (c) Salary of National Taxpayer Advocate.--Section 
     7803(c)(1)(B)(i) is amended by striking ``, or, if the 
     Secretary of the Treasury so determines, at a rate fixed 
     under section 9503 of such title''.
       (d) Effective Date.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendments made by this section shall take 
     effect on the date of the enactment of this Act.
       (2) Salary of national taxpayer advocate.--The amendment 
     made by subsection (c) shall apply to compensation paid to 
     individuals appointed as the National Taxpayer Advocate after 
     the date of the enactment of this Act.

     SEC. 403. ELIMINATION OF IRS OVERSIGHT BOARD.

       (a) In General.--Subchapter A of chapter 80 is amended by 
     striking section 7802 (and by striking the item relating to 
     such section in the table of sections of such subchapter).
       (b) Conforming Amendments.--
       (1) Section 4946(c) is amended by adding ``or'' at the end 
     of paragraph (5), by striking ``, or'' at the end of 
     paragraph (6) and inserting a period, and by striking 
     paragraph (7).
       (2) Section 6103(h) is amended by striking paragraph (6).
       (3) Section 7803(a) is amended by striking paragraph (4).
       (4) Section 7803(c)(1)(B)(ii) is amended by striking ``and 
     the Oversight Board''.
       (5) Section 7803(c)(2)(B)(iii) is amended by striking ``the 
     Oversight Board,''.

[[Page H3415]]

       (6) Section 8D of the Inspector General Act of 1978 is 
     amended--
       (A) in subsections (g)(2) and (h), by striking ``the 
     Internal Revenue Service Oversight Board and'',
       (B) in subsection (l)(1), by striking ``or the Internal 
     Revenue Service Oversight Board'', and
       (C) in subsection (l)(2), by striking ``and the Internal 
     Revenue Service Oversight Board''.

     SEC. 404. MODERNIZATION OF INTERNAL REVENUE SERVICE 
                   ORGANIZATIONAL STRUCTURE.

       (a) In General.--Not later than September 30, 2020, the 
     Administrator of the Internal Revenue Service shall submit to 
     Congress a comprehensive written plan to redesign the 
     organization of the Internal Revenue Service. Such plan 
     shall--
       (1) ensure the successful implementation of the priorities 
     specified by Congress in this Act,
       (2) prioritize taxpayer services to ensure that all 
     taxpayers easily and readily receive the assistance that they 
     need,
       (3) streamline the structure of the agency including 
     minimizing the duplication of services and responsibilities 
     within the agency,
       (4) best position the Internal Revenue Service to combat 
     cybersecurity and other threats to the Internal Revenue 
     Service, and
       (5) address whether the Criminal Investigation Division of 
     the Internal Revenue Service should report directly to the 
     Administrator.
       (b) Repeal of Restriction on Organizational Structure of 
     Internal Revenue Service.--Paragraph (3) of section 1001(a) 
     of the Internal Revenue Service Restructuring and Reform Act 
     of 1998 shall cease to apply beginning 1 year after the date 
     on which the Administrator of the Internal Revenue Service 
     submits to Congress the plan described in subsection (a).

                           TITLE V--TAX COURT

     SEC. 501. DISQUALIFICATION OF JUDGE OR MAGISTRATE JUDGE OF 
                   THE TAX COURT.

       (a) In General.--Part II of subchapter C of chapter 76 is 
     amended by adding at the end the following new section:

     ``SEC. 7467. DISQUALIFICATION OF JUDGE OR MAGISTRATE JUDGE OF 
                   THE TAX COURT.

       ``Section 455 of title 28, United States Code, shall apply 
     to judges and magistrate judges of the Tax Court and to 
     proceedings of the Tax Court.''.
       (b) Clerical Amendment.--The table of sections for such 
     part is amended by adding at the end the following new item:

``Sec. 7467. Disqualification of judge or magistrate judge of the Tax 
              Court.''.

     SEC. 502. OPINIONS AND JUDGMENTS.

       (a) In General.--Section 7459 is amended by striking all 
     the precedes subsection (c) and inserting the following:

     ``SEC. 7459. OPINIONS AND JUDGMENTS.

       ``(a) Requirement.--An opinion upon any proceeding 
     instituted before the Tax Court and a judgment thereon shall 
     be made as quickly as practicable. The judgment shall be made 
     by a judge in accordance with the opinion of the Tax Court, 
     and such judgment so made shall, when entered, be the 
     judgment of the Tax Court.
       ``(b) Inclusion of Findings of Fact in Opinion.--It shall 
     be the duty of the Tax Court and of each division to include 
     in its opinion or memorandum opinion upon any proceeding, its 
     findings of fact. The Tax Court shall issue in writing all of 
     its findings of fact, opinions, and memorandum opinions. 
     Subject to such conditions as the Tax Court may by rule 
     provide, the requirements of this subsection and of section 
     7460 are met if findings of fact or opinion are stated orally 
     and recorded in the transcript of the proceedings.''.
       (b) Conforming Amendments to Section 7459.--
       (1) Subsections (c), (d), (e), and (f) of section 7459 are 
     each amended by striking ``decision'' each place it appears 
     and inserting ``judgment''.
       (2) The headings of subsections (c), (d), and (e) of 
     section 7459 are each amended by striking ``Decision'' and 
     inserting ``Judgment''.
       (3) The item relating to section 7459 in the table of 
     sections for part II of subchapter C of chapter 76 is amended 
     to read as follows:

``Sec. 7459. Opinions and judgments.''.
       (c) Other Conforming Amendments.--
       (1) The following provisions are each amended by striking 
     ``decision'' and inserting ``judgment'':
       (A) Section 1313(a)(1).
       (B) Section 6213(a).
       (C) Section 6214(d).
       (D) Section 6225(a)(2).
       (E) Section 6226(g).
       (F) Section 6228(a)(6).
       (G) Subsections (a)(3)(B) and (c)(1)(A)(ii) of section 
     6230.
       (H) Section 6247(d).
       (I) Section 6252(e).
       (J) Section 6404(h)(2)(C).
       (K) Section 6503(a)(1).
       (L) Section 6673(a)(1)(C).
       (M) Subsections (c), (f), and (g) of section 6861.
       (N) Section 6863(b)(3)(C).
       (O) Section 7428(a).
       (P) Section 7428(c)(1)(C)(i).
       (Q) Section 7430(f)(3).
       (R) Section 7436(c)(2).
       (S) Section 7461(b)(2).
       (T) Subsections (a)(4), (b), and (d) of section 7463.
       (U) Subsections (a)(2)(B) and (b)(4) of section 7476.
       (V) Section 7477(a).
       (W) Section 7478(a)(2).
       (X) Subsections (a)(2) and (c) of section 7479.
       (2) The following provisions are each amended by striking 
     ``decision'' each place it appears and inserting 
     ``judgment'':
       (A) Subsections (a) and (b)(3) of section 6215.
       (B) Section 6226(h).
       (C) Section 6247(e).
       (D) Subsections (d) and (e) of section 6861.
       (E) Section 6863(b)(2).
       (F) Section 7422.
       (G) Subsections (a) and (b) of section 7460.
       (H) Subsections (a), (b), (c), and (d) of section 7463.
       (I) Section 7482.
       (J) Section 7483.
       (K) Section 7485(b).
       (L) Section 7481.
       (3) Sections 7422 and 7482 are each amended by striking 
     ``decisions'' each place it appears and inserting 
     ``judgments''.
       (4) Section 7430(f)(1) is amended by striking ``decision 
     or'' both places it appears.
       (5) Subsections (a) and (b) of section 7460 are each 
     amended by striking ``report'' each place it appears and 
     inserting ``opinion''.
       (6) Section 7461(a) is amended--
       (A) by striking ``reports'' and inserting ``opinions'', and
       (B) by striking ``report'' and inserting ``opinion''.
       (7) Section 7462 is amended by striking ``reports'' each 
     place it appears and inserting ``opinions''.
       (8) Section 7487(1) is amended by striking ``decisions'' 
     and inserting ``judgments''.
       (9) The headings of sections 6214(b), 7463(b), 7481(a), 
     7481(b), 7481(d), and 7485(b) are each amended by striking 
     ``Decisions'' and inserting ``Judgments''.
       (10) The headings of sections 6226(h), 6247(e), 6861(c), 
     6861(d), 7443A(c), 7481(a)(2), and 7481(a)(3) are each 
     amended by striking ``Decision'' and inserting ``Judgment''.
       (11) The headings of sections 6863(b)(2), 6863(b)(3), 
     7430(f)(3), and 7482(a)(2)(B) are each amended by striking 
     ``decision'' and inserting ``judgment''.
       (12) The heading of section 7436(c)(2) is amended by 
     striking ``decisions'' and inserting ``judgment''.
       (13) The heading of section 7460(a) is amended by striking 
     ``Reports'' and inserting ``Opinions''.
       (14) The heading of section 7462 is amended by striking 
     ``reports'' and inserting ``opinions''.
       (15) The heading of subchapter D of chapter 76 is amended 
     by striking ``Decisions'' and inserting ``Judgments''.
       (16) The heading of section 7481 is amended by striking 
     ``decision'' and inserting ``judgment''.
       (17) The item relating to section 7462 in the table of 
     sections for part II of subchapter C of chapter 76 is amended 
     to read as follows:

``Sec. 7462. Publication of opinions.''.
       (18) The item relating to subchapter D in the table of 
     subchapters for chapter 76 is amended to read as follows:

        ``subchapter d.--court review of tax court judgments''.

       (19) The item relating to section 7481 in the table of 
     sections for part III of subchapter D of chapter 76 is 
     amended to read as follows:

``Sec. 7481. Date when Tax Court judgment becomes final.''.
       (d) Continuing Effect of Legal Documents.--All orders, 
     decisions, reports, rules, permits, agreements, grants, 
     contracts, certificates, licenses, registrations, privileges, 
     and other administrative actions, in connection with the Tax 
     Court, which are in effect at the time this section takes 
     effect, or were final before the effective date of this 
     section and are to become effective on or after the effective 
     date of this section, shall continue in effect according to 
     their terms until modified, terminated, superseded, set 
     aside, or revoked in accordance with law by the Tax Court.

     SEC. 503. TITLE OF SPECIAL TRIAL JUDGE CHANGED TO MAGISTRATE 
                   JUDGE OF THE TAX COURT.

       (a) In General.--Section 7443A is amended--
       (1) by striking ``special trial judges'' in subsections (a) 
     and (e) and inserting ``magistrate judges of the Tax Court'',
       (2) by striking ``special trial judges of the court'' in 
     subsection (b) and inserting ``magistrate judges of the Tax 
     Court'', and
       (3) by striking ``special trial judge'' in subsections (c) 
     and (d) and inserting ``magistrate judge of the Tax Court''.
       (b) Conforming Amendments.--
       (1) The heading of section 7443A is amended by striking 
     ``special trial judges'' and inserting ``magistrate judges of 
     the tax court''.
       (2) The heading of section 7443A(b) is amended by striking 
     ``Special Trial Judges'' and inserting ``Magistrate Judges of 
     the Tax Court''.
       (3) The item relating to section 7443A in the table of 
     sections for part I of subchapter C of chapter 76 is amended 
     to read as follows:

``Sec. 7443A. Magistrate judges of the Tax Court.''.
       (4) The heading of section 7448 is amended by striking 
     ``special trial judges'' and inserting ``magistrate judges of 
     the tax court''.
       (5) Section 7448 is amended--
       (A) by striking ``special trial judge's'' each place it 
     appears in subsections (a)(6), (c)(1), (d), and (m)(1) and 
     inserting ``magistrate judge of the Tax Court's'', and
       (B) by striking ``special trial judge'' each place it 
     appears other than in subsection (n) and inserting 
     ``magistrate judge of the Tax Court''.
       (6) Section 7448(n) is amended--
       (A) by striking ``special trial judge which are allowable'' 
     and inserting ``magistrate judge of the Tax Court which are 
     allowable'', and
       (B) by striking ``special trial judge of the Tax Court'' 
     both places it appears and inserting ``magistrate judge of 
     the Tax Court''.
       (7) The heading of section 7448(b)(2) is amended by 
     striking ``Special trial judges'' and inserting ``Magistrate 
     judges of the tax court''.

[[Page H3416]]

       (8) The item relating to section 7448 in the table of 
     sections for part I of subchapter C of chapter 76 is amended 
     to read as follows:

``Sec. 7448. Annuities to surviving spouses and dependent children of 
              judges and magistrate judges of the Tax Court.''.
       (9) Section 7456(a) is amended--
       (A) by striking ``special trial judge'' each place it 
     appears and inserting ``magistrate judge'', and
       (B) by striking ``(or by the clerk'' and inserting ``of the 
     Tax Court (or by the clerk''.
       (10) Section 7466(a) is amended by striking ``special trial 
     judge'' and inserting ``magistrate judge''.
       (11) Section 7470A is amended by striking ``special trial 
     judges'' both places it appears in subsections (a) and (b) 
     and inserting ``magistrate judges''.
       (12) Section 7471(a)(2)(A) is amended by striking ``special 
     trial judges'' and inserting ``magistrate judges''.
       (13) Section 7471(c) is amended--
       (A) by striking ``Special Trial Judges'' in the heading and 
     inserting ``Magistrate Judges of the Tax Court'', and
       (B) by striking ``special trial judges'' and inserting 
     ``magistrate judges''.

     SEC. 504. REPEAL OF DEADWOOD RELATED TO BOARD OF TAX APPEALS.

       (a) Section 7459 is amended by striking subsection (f) and 
     redesignating subsection (g) as subsection (f).
       (b) Section 7447(a)(3) is amended to read as follows:
       ``(3) In any determination of length of service as judge or 
     as a judge of the Tax Court of the United States there shall 
     be included all periods (whether or not consecutive) during 
     which an individual served as judge.''.

  The SPEAKER pro tempore. The bill, as amended, shall be debatable for 
1 hour equally divided and controlled by the chair and ranking minority 
member of the Committee on Ways and Means.
  The gentleman from Texas (Mr. Brady) and the gentleman from Georgia 
(Mr. Lewis) each will control 30 minutes.
  The Chair recognizes the gentleman from Texas.


                             General Leave

  Mr. BRADY of Texas. Mr. Speaker, I ask unanimous consent that all 
Members have 5 legislative days within which to revise and extend their 
remarks and include any extraneous material on H.R. 5444, currently 
under consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Texas?
  There was no objection.
  Mr. BRADY of Texas. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, today we are taking the biggest and boldest steps in 20 
years, to redesign the IRS with a singular focus, taxpayer service.
  This bill will redesign the IRS for the first time in two decades. It 
refocuses the agency to live up to its mission of putting taxpayers 
first. Finally, it will rein in its enforcement powers to prevent 
future abuse.
  There are two important pieces of legislation being considered before 
the House today, H.R. 5444, the Taxpayer First Act; and H.R. 5445, the 
21st Century IRS Act. These bipartisan bills, the product of 2 years of 
work by the Committee on Ways and Means, will make the IRS a truly 
taxpayer-first agency in a number of different ways.
  First off, this bill puts an emphasis on customer service. We are 
requiring the IRS to submit to Congress plans to restructure the agency 
to improve efficiency, enhance cybersecurity, and better serve 
taxpayers. This will guarantee that the IRS is living up to its 
``quality service'' motto, while holding the agency accountable if it 
fails to meet these standards.
  In addition, our legislation encourages the IRS to adopt commonsense 
customer service features commonly seen in the private sector, such as 
a call-back option.
  Secondly, we are overhauling the IRS' enforcement tools so families 
and small businesses can't have property seized without fair notice and 
due process. Over and over again, we have heard stories from across the 
country of absolutely tragic abuses of power by the IRS.
  For example, we heard from Andrew Clyde, who served three combat 
tours in Iraq. Then he came home and opened a successful small business 
in Georgia, only to have the IRS unfairly seize $950,000 from him. Our 
legislation prevents outrageous enforcement abuses like this to protect 
American taxpayers from unfair seizures.
  Thirdly, the Taxpayer First Act reminds the IRS they are not just an 
enforcement agency, they are also our tax administrator. That is why 
this bill changes the title of the IRS chief from Commissioner to, more 
accurately, Administrator.
  Additionally, and this is important, Mr. Speaker, we are shifting the 
burden of proof back onto the IRS when examining taxpayers. This 
legislation establishes an Independent Office of Appeals within the 
agency to ensure that taxpayers receive a fair and impartial review of 
disputes they may have with the IRS.
  It shouldn't take a Freedom of Information Act request to see what 
evidence the IRS is bringing against you. This legislation will require 
that the IRS provide you with your own case file prior to any review of 
your dispute with the agency. It puts taxpayers on a level playing 
field, which is where they deserve to be.
  In the 21st Century IRS Act, we are revamping the IRS' nearly ancient 
technology and better positioning the agency to proactively combat 
cyber threats.
  Right now, IRS technology is so outdated that some systems date to 
the 1960s, and fax machines are still used for some official 
communications. This bill modernizes the IRS and ensures the agency is 
accountable for the billions of dollars in IT that it spends each year.
  Lastly, the 21st Century IRS Act enhances the agency's ability to 
combat identity theft tax refund fraud by strengthening the IRS' 
partnership with States and with cybersecurity experts.

                              {time}  1345

  This bill requires the IRS to practically partner with States in the 
private sector that effectively combat identify thieves trying to steal 
our refund.
  I want to thank Oversight Subcommittee Chairman Lynn Jenkins and 
Oversight Subcommittee Ranking Member  John Lewis for their tireless 
work on this important bill.
  With the new Tax Code, it is time for a redesign of our tax agency. 
This bipartisan legislation truly refocuses the IRS to make it a 
taxpayer-first agency.
  Finally, Mr. Speaker, before I turn over the floor, I would like to 
recognize a good friend and trusted policy adviser, and by every 
measure, one of the very best to ever serve the Ways and Means 
Committee in the House, Mr. David Stewart.
  David began his congressional journey in 2000, when he came to intern 
for Ways and Means Committee member, Congressman Phil English. Over his 
career as a staffer, David became a trusted voice on policy for Speaker 
John Boehner, for Speaker Paul Ryan, and, 2\1/2\ years ago, for me, 
when he joined the Ways and Means Committee as staff director.
  This past year, with David's steady leadership and immutable resolve, 
we were able to pass the first tax reform in a generation, which has 
boosted our economy and helped so many American families. David's focus 
has always been on making lives better for all Americans, and I stand 
here to today to tell him: Job well done.
  David is a selfless public servant. He sacrificed so much time away 
from his family--his wife, Betsy, and his daughters, Grace and Poppy--
and yet he has served his nation so well.
  To say David works hard is an understatement. Once, when he was asked 
how many hours he worked per week, David replied, simply, with, ``A 
lot.'' This also shows David's wit and his wry sense of humor that has 
always made busy days brighter.
  His dedication to mastering intricate policy is unmatched, and I 
know, Mr. Speaker, I speak for all members and staff of the Ways and 
Means Committee when I say: Thank you, David, for your service to the 
House and the Committee on Ways and Means. You will be greatly missed 
around here, my friend.

                                         House of Representatives,


                              Committee on Financial Services,

                                   Washington, DC, April 12, 2018.
     Hon. Kevin Brady,
     Chairman, Committee on Ways and Means, Washington, DC.
       Dear Chairman Brady: I am writing to you regarding H.R. 
     5444, the ``Taxpayer First Act''. There are certain 
     provisions in the legislation which fall within the Rule X 
     jurisdiction of the Committee on Financial Services.

[[Page H3417]]

       In the interest of permitting your committee to proceed 
     expeditiously to floor consideration of this important bill, 
     I am willing to waive this committee's right to sequential 
     referral. I do so with the understanding that by waiving 
     consideration of the bill the Committee on Financial Services 
     does not waive any future jurisdictional claim over the 
     subject matters contained in the bill which fall within its 
     Rule X jurisdiction. I request that you urge the Speaker to 
     name members of this committee to any conference committee 
     which is named to consider such provisions.
       Please place this letter into the committee report on H.R. 
     5444 and into the Congressional Record during consideration 
     of the measure on the House floor. Thank you for the 
     cooperative spirit in which you have worked regarding this 
     matter and others between our respective committees.
           Sincerly,
                                                   Jeb Hensarling,
     Chairman.
                                  ____

                                         House of Representatives,


                                  Committee on Ways and Means,

                                   Washington, DC, April 13, 2018.
     Hon. Jeb Hensarling,
     Chairman, Committee on Financial Services,
     Washington, DC.
       Dear Chairman Hensarling: Thank you for your letter 
     concerning H.R. 5444, the ``Taxpayer First Act'' on which the 
     Financial Services Committee was granted an additional 
     referral.
       I am most appreciative of your decision to waive formal 
     consideration of H.R. 5444 so that it may proceed 
     expeditiously to the House floor. I acknowledge that although 
     you waived formal consideration of the bill, the Financial 
     Services Committee is in no way waiving its jurisdiction over 
     the subject matter contained in those provisions of the bill 
     that fall within your Rule X jurisdiction. I would support 
     your effort to seek appointment of an appropriate number of 
     conferees on any House-Senate conference involving this 
     legislation.
       I will include a copy of our letters in the Congressional 
     Record during consideration of this legislation on the House 
     floor.
           Sincerely,
                                                      Kevin Brady,
                                                         Chairman.

  Mr. BRADY of Texas. Mr. Speaker, I yield the balance of my time to 
the gentlewoman from Kansas (Ms. Jenkins), and I ask unanimous consent 
that she may control that time.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Texas?
  There was no objection.
  Ms. JENKINS of Kansas. Mr. Speaker, I reserve the balance of my time.
  Mr. LEWIS of Georgia. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, I want to thank Chairman Brady for all of his great and 
good work and for all of his help.
  Mr. Speaker, I rise in strong support of H.R. 5444. I am proud to 
join the gentlewoman from Kansas (Ms. Jenkins) in introducing the 
Taxpayer First Act.
  I would like to begin by thanking the chairwoman for her good and 
great work on this bill. It was a wonderful opportunity and a great 
pleasure to work with Ms. Jenkins.
  I would also like to thank our friend and colleague, the gentleman 
from Florida (Mr. Buchanan), for his determination to work together on 
behalf of the taxpayers.
  Finally, I would like to recognize our staff--Karen McAfee, Peg 
McGlinch, Machalagh Carr, Rachel Kaldahl, Liz Navin, Lindsay Steward, 
Meinan Gogo, Adam York, and Jamila Thompson--for all of their hard, 
good, and great work, and we will never forget you.
  Mr. Speaker, the process and the product should inspire each and 
every Member of this body. For over a year, the Ways and Means 
Oversight Subcommittee hosted hearings and roundtables. We listened and 
asked questions. We asked Democratic and Republican Members to provide 
feedback. We reached out to taxpayers and advocates. We negotiated. We 
took our time, and, Mr. Speaker, I believe that we did it right. 
Together, we developed a bill that improves the independent appeals 
process and taxpayer services.
  Last month, the gentlewoman from Kansas (Ms. Jenkins) and I released 
a discussion draft of a bill that would strengthen the IRS and improve 
taxpayers' services. We reviewed the comments and tried to include 
fixes where there was agreement. The process was transparent and 
inclusive, and the product is strong and timely.
  H.R. 5444 also makes commonsense updates to the structure of the IRS 
and the Tax Code. In particular, I am very proud of our work to improve 
IRS enforcement. For example, we were able to address a shocking issue 
that the National Taxpayer Advocate raised in her 2017 annual report to 
Congress.
  It is hard to believe that the private debt collection program costs 
three times more than it collects. This flawed program targets and 
abuses thousands of low-income taxpayers by enrolling them in 
installment agreements that they simply cannot afford. That is not 
right. That is not fair. By removing low-income taxpayers from the 
private debt collection program, H.R. 5444 puts us on the right path.
  Unfortunately, the IRS experienced serious system problems yesterday. 
I am glad that the IRS acted quickly and extended the tax filing 
deadline. These problems showed us that we need to have an honest talk 
with ourselves about the work ahead.
  We all know that Congress cut the agency's budget by almost $1 
billion since 2010. This reduction harmed both taxpayer services and 
tax administration. I have said time and time again that you cannot get 
blood from a turnip. I look forward to working with our colleagues to 
ensure that the agency has the tools and resources it needs.
  It is also important that taxpayers, especially those who are of low 
income, disabled, and senior citizens, receive fair, quality, and 
timely help and support.
  Through it all, Mr. Speaker, our subcommittee did good work, 
necessary work. From the beginning, we committed to bipartisanship, and 
we refused to abandon our course. Mr. Speaker, I am proud of our 
product and process. At every crossroad, we remembered the lessons from 
the past and chose to put the taxpayers first.
  Again, I urge all of our colleagues to support this bill. I hope that 
we will continue to work together and improve the taxpayers' 
experience.
  Mr. Speaker, I reserve the balance of my time.
  Ms. JENKINS of Kansas. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, today marks a significant step forward for the American 
taxpayer as we take up the bipartisan Taxpayer First Act.
  The goal of this bill is simple: move the Internal Revenue Service 
toward being a truly customer service-focused agency, placing a renewed 
focus on treating taxpayers with respect and dignity.
  Mr. Speaker, I want to thank the Ways and Means Oversight 
Subcommittee Ranking Member,  John Lewis, for cosponsoring this 
legislation with me.
  Together, the subcommittee held 13 formal committee events over the 
past 3 years, looking at many aspects of how the IRS functions and 
where improvements are clearly needed. It is in all of our interests 
for taxpayers to know that the IRS is treating them fairly and with 
respect.
  As a CPA, Members might have heard me talk before about my concerns 
with the interactions between the IRS and taxpayers. Not only have I 
heard these concerns while practicing in the private sector, but in my 
congressional office as well.
  In handling constituent services requests through my office, I have 
found many instances of just outright lack of common sense in 
administering our Tax Code. As we looked at what changes needed to be 
made, we focused on the relationship between taxpayers and the 
government. That means a customer service experience akin to what 
Americans expect from the private sector, with online services, 
callback options, and improved support on the phone. To make sure 
taxpayers receive a fair and impartial review of disputes, we 
established the Independent Office of Appeals.
  This commitment to fair and impartial treatment is the bedrock of the 
faith Americans place in the IRS.

  The vast majority of tax revenues come into the Treasury voluntarily. 
According to the National Taxpayer Advocate, only 2 percent of all tax 
revenue collected comes from IRS enforcement actions. A service-
oriented, taxpayer-first IRS is key to supporting voluntary compliance.
  Our bill also makes permanent the IRS Free File Program, which is not 
only a win for the taxpayer, but saves the IRS time as well. This 
commonsense provision is one of the many included in this legislation 
that has strong bipartisan support and furthers the IRS mission to 
promote electronic filing.

[[Page H3418]]

  This bill also includes important taxpayer protections to ensure that 
the IRS enforcement powers are fair and transparent. For example, this 
bill includes safeguards to ensure that individuals and small 
businesses are protected from improper seizures by the IRS.
  Lastly, the bill tasks the IRS to develop and submit to Congress a 
comprehensive plan to restructure the agency, ensuring that it is best 
positioned to meet the needs of taxpayers today and into the future.
  In short, this is the reform I promised my constituents in Kansas and 
the reforms that all Americans deserve.
  Mr. Speaker, I would also like to note that we have received a score 
from the Congressional Budget Office, which I include in the Record.

                                                    U.S. Congress,


                                  Congressional Budget Office,

                                   Washington, DC, April 16, 2018.
     Hon. Kevin Brady,
     Chairman, Committee on Ways and Means,
     House of Representatives, Washington, DC.
       Dear Mr. Chairman: The Congressional Budget Office has 
     prepared the enclosed cost estimate for H.R. 5444, the 
     Taxpayer First Act.
       If you wish further details on this estimate, we will be 
     pleased to provide them.
           Sincerely,
                                                       Keith Hall,
                                                         Director.
       Enclosure.

                     H.R. 5444--Taxpayer First Act

 As reported by the House Committee on Ways and Means on April 13, 2018


                                Summary

       H.R. 5444 would make a number of changes to the management 
     and oversight of the Internal Revenue Service (IRS). The bill 
     would:
       Aim to improve customer service and the taxpayer appeals 
     assistance process;
       Restrict certain IRS enforcement activities;
       Modify the agency's organization; and
       Change the operations of the U.S. Tax Court.
       The staff of the Joint Committee on Taxation (JCT) 
     estimates that enacting the bill would reduce revenues by 
     $102 million over the 2019-2028 period, and CBO estimates 
     that enacting H.R. 5444 would decrease direct spending by $51 
     million over the same period. On net, H.R. 5444 would 
     increase deficits by $52 million over the period. CBO has not 
     completed an estimate of the bill's costs that are subject to 
     annual appropriation.
       Because enacting the bill would affect direct spending and 
     revenues, pay-as-you-go procedures apply.
       CBO and JCT estimate that enacting H.R. 5444 would not 
     increase net direct spending or significantly affect on-
     budget deficits in any of the four consecutive 10-year 
     periods beginning in 2029.
       JCT has reviewed H.R. 5444 and determined that it contains 
     no intergovernmental or private-sector mandates as defined in 
     the Unfunded Mandates Reform Act (UMRA).


                Estimated Cost to the Federal Government

       The estimated budgetary effect of H.R. 5444 is shown in the 
     following table. The costs of the legislation fall within 
     budget function 800 (general government).

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                 By fiscal year, in millions of dollars--
                                                 -------------------------------------------------------------------------------------------------------
                                                                                                                                           2019-   2019-
                                                   2018    2019    2020    2021    2022    2023    2024    2025    2026    2027    2028    2023    2028
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                  DECREASES IN REVENUES
 
Estimated Revenues..............................       0     -32     -57     -12      -1       *       *       *       *       *       *    -101    -102
 
                                                             DECREASES IN DIRECT SPENDING a
 
Estimated Budget Authority......................       0     -16     -29      -6       *       *       *       *       *       *       *     -51     -51
Estimated Outlays...............................       0     -16     -29      -6       *       *       *       *       *       *       *     -51     -51
 
                                        NET INCREASE IN THE DEFICIT FROM CHANGES IN DIRECT SPENDING AND REVENUES
 
Effect on the Deficit...........................       0      16      29       6       *       *       *       *       *       *       *      51      52
--------------------------------------------------------------------------------------------------------------------------------------------------------
Components may not sum to totals because of rounding; * = between -$500,000 and zero.
a CBO expects that implementing the bill would increase spending for the Internal Revenue Service (IRS) that is subject to appropriation. CBO has not
  completed an estimate of those costs. In 2018, the Congress appropriated $11.1 billion for IRS operations.

                           Basis of Estimate

       For purposes of this estimate, CBO assumes that H.R. 5444 
     will be enacted by the end of fiscal year 2018.


                                Revenues

       Under current law, the IRS is authorized to use private 
     debt collection companies to locate and contact taxpayers who 
     owe federal taxes and to arrange for the payment of those 
     amounts. The bill would prohibit the use of private 
     collection companies when the affected taxpayer's adjusted 
     gross income is at or below 250 percent of the poverty level 
     (as determined by the Secretary of the Treasury). The 
     provision would take effect six months after the enactment of 
     the legislation and end in December 2019. JCT estimates that 
     the change would reduce revenues by $102 million over the 
     2019-2028 period. The provision also would affect direct 
     spending, as discussed under the heading, ``Direct 
     Spending.''
       JCT estimates that other provisions in the bill would 
     reduce revenues by an insignificant amount in each year.


                            Direct Spending

       The bill's prohibition on using private debt collectors in 
     certain cases would reduce direct spending. Under current 
     law, the IRS enters into contracts with private companies to 
     collect delinquent tax liabilities owed to the federal 
     government. Under those contracts, the IRS may allow those 
     businesses to retain up to 25 percent of the amounts they 
     collect. Another 25 percent of the amounts collected is 
     available to the IRS to spend on enforcement activities. CBO 
     estimates that repealing the private debt collection 
     authority and allowing the current contracts to expire would 
     reduce direct spending by $51 million over the 2019-2028 
     period, or 50 percent of the estimated reduction in revenues 
     stemming from this provision.
       Other provisions in the bill would have an insignificant 
     effect on direct spending.


                      Pay-As-You-Go Considerations

       The Statutory Pay-As-You-Go Act of 2010 establishes budget-
     reporting and enforcement procedures for legislation 
     affecting direct spending or revenues. The net changes in 
     outlays and revenues that are subject to those pay-as-you-go 
     procedures are shown in the following table.

 CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 5444, THE TAXPAYER FIRST ACT, AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON WAYS AND MEANS ON APRIL 11,
                                                                          2018
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                 By fiscal year, in millions of dollars--
                                                 -------------------------------------------------------------------------------------------------------
                                                                                                                                           2018-   2018-
                                                   2018    2019    2020    2021    2022    2023    2024    2025    2026    2027    2028    2023    2029
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               NET INCREASE IN THE DEFICIT
 
Statutory Pay-As-You-Go Impact..................       0      16      29       6       *       *       *       *       *       *       *      51      52
Memorandum:
    Decreases in Outlays........................       0     -16     -29      -6       *       *       *       *       *       *       *     -51     -51
    Decreases in Revenues.......................       0     -32     -57     -12      -1       *       *       *       *       *       *    -101    -102
--------------------------------------------------------------------------------------------------------------------------------------------------------

           Increase in Long-Term Direct Spending and Deficits

       CBO and JCT estimate that enacting H.R. 5444 would not 
     increase net direct spending or significantly affect on-
     budget deficits in any of the four consecutive 10-year 
     periods beginning in 2029.


                                Mandates

       JCT has reviewed H.R. 5444 and determined that it contains 
     no intergovernmental or private-sector mandates as defined in 
     UMRA.


                          Estimate Prepared by

       Federal Costs: Janet Holtzblatt and Matthew Pickford.


                          Estimate Reviewed by

       Kim P. Cawley, Chief, Natural and Physical Resources Cost 
     Estimates Unit.
       H. Samuel Papenfuss, Deputy Assistant Director for Budget 
     Analysis.
       Theresa Gullo, Assistant Director for Budget Analysis.
       John McClelland, Assistant Director for Tax Analysis.

  Ms. JENKINS of Kansas. Mr. Speaker, I reserve the balance of my time.
  Mr. LEWIS of Georgia. Mr. Speaker, I yield 3 minutes to the 
gentlewoman

[[Page H3419]]

from California (Ms. Eshoo), my good friend.
  Ms. ESHOO. Mr. Speaker, I thank our beloved  John Lewis for yielding 
time to me.
  Mr. Speaker, I rise today in strong support of H.R. 5444, the 
Taxpayer First Act. This is bipartisan legislation, and it was 
unanimously reported out by the Committee on Ways and Means on April 
13. It includes a number of important provisions that will modernize, 
as the Members have been saying, and improve how the IRS administers 
the Federal Tax Code.
  The legislation also makes permanent a popular IRS program that has 
helped prepare 50 million free returns and e-filings over the last 15 
years, saving taxpayers more than $1.5 billion--yes, with a B--in tax 
compliance costs. That program is the Free File Program. It is an 
effective partnership between the IRS and the tax preparation community 
that provides free individual tax preparation and e-filing services to 
taxpayers with incomes in the bottom 70 percent.
  I have been a strong supporter of stand-alone legislation on this 
issue over several Congresses, and I am really pleased to see that it 
is included in H.R. 5444.
  The Free File Program is also a product of the decentralized system 
of private taxpayers that we have in place for the American public to 
file their taxes each year. Consumers have a choice when it comes to 
whom they choose to prepare their taxes, and choice is a product of 
competition and the primary ingredient for innovation.
  Some have argued that this should be a centralized system, requiring 
all taxpayers to file their tax returns using one system housed under 
one roof. But just yesterday, we saw the IRS electronic filing system 
and e-services crash, and they remained out of service for most of the 
day. I think taxpayers are better served when they have a decentralized 
tax ecosystem that can continue to run smoothly in the face of large 
and unexpected shocks to the system.
  We live every day with the increasing threat of data breaches and 
cyber attacks that threaten the financial stability of more and more 
Americans, and it is even a greater argument against housing our tax 
infrastructure under one roof. Imagine the target this could create for 
the world's most dangerous cybercriminals.
  So I am proud to support this bipartisan legislation, because I think 
it is an excellent example of what both sides of the aisle, Republicans 
and Democrats, can do when we work together for the good of the 
American people.
  Mr. Speaker, I urge all of my colleagues to vote ``aye'' on H.R. 
5444.

                              {time}  1400

  Ms. JENKINS of Kansas. Mr. Speaker, I yield 2 minutes to the 
gentleman from Illinois (Mr. Roskam).
  Mr. ROSKAM. Mr. Speaker, I want to thank Chairman Jenkins and Ranking 
Member Lewis for their work on this, and I am pleased that the 
underlying bill includes the RESPECT Act, which deals with civil asset 
forfeiture abuses by the Internal Revenue Service, and I strongly urge 
the other body to take this up.
  Mr. Speaker, I want to pick up on one of the themes that the 
gentlewoman from California just mentioned--the Free File Program--and 
explain why it is important.
  She mentioned a decentralized program which makes all of the sense in 
the world. She mentioned a level of predictability that makes all the 
sense in the world. There are opponents to this, however, and I just 
scratch my head. There are some fringe groups that have said: Oh, no, 
no, no, that is a bad idea.
  Instead, what they are proposing is this: that the Internal Revenue 
Service fills out your tax returns; that the Internal Revenue Service 
acts as judge, jury, and executioner. That is a terrible idea. It is 
called ReadyReturn. It is a disaster. We ought not do that.
  Instead, as the gentlewoman from California said, let's do this 
program. It saves untold sums of money. It is a great benefit to modest 
taxpayers--those who are earning less than $66,000 in their adjusted 
gross income--and it also puts the onus on the private sector to 
actively participate in this process. So in a nutshell, this is a good 
bill. It is well thought out. It is bipartisan. It has been well 
crafted and well contemplated, and I urge its passage.
  Mr. LEWIS of Georgia. Mr. Speaker, I am pleased to yield 4 minutes to 
the gentleman from Oregon (Mr. Blumenauer), who is a member of the 
Health, Oversight, and Tax Policy Subcommittees.
  Mr. BLUMENAUER. Mr. Speaker, I appreciate the gentleman's courtesy, 
and I appreciate his hard work with Chair Jenkins moving this forward.
  This is an example of--maybe people don't think it is earthshaking--
but being able to come together and deal with things that make a 
difference with the IRS, which is the largest voluntary tax compliance 
system in the world. It is very important. And I am pleased, with the 
reference to 13 hearings and a lot of the back and forth, being able to 
reach consensus.
  But let me say, I wish that those two people who led this effort had 
been empowered to do a deep dive into some of the dysfunctionality that 
has been imposed on the IRS. Since 2010, the IRS is dealing with more 
and more returns which are more and more complex, and my Republican 
friends have slashed the people who work on it.
  We haven't modernized the computer system which those of us who took 
our first computer programming in the 1970s, I think, would be equipped 
to work on. It is so outdated.
  We have cut the people who were involved with enforcement. Now, I 
would wish that everybody would voluntarily comply, but everybody 
doesn't. And as a result, those people who work on enforcement make 
about $6 for the taxpayer for every dollar we invest in their efforts. 
And, more importantly, it is a signal that everybody is going to be 
treated fairly. The people who cut corners, who forget, or who outright 
cheat are taking away money from the government and putting the burden 
on others who not only have to pick up the slack, but the people who 
cheat get an unfair advantage in how they do business.
  They are more profitable because they don't pay their full freight. 
That is stupid, unfair, and it is counterproductive. That is one of the 
reasons why we have a $450 billion tax gap--the difference between what 
is owed as a result of people's tax liability and what is paid.
  My friends on the other side of the aisle have been involved with 
punishing the IRS for things real and imagined. But who has really 
suffered has been the taxpayer, people who can't get their phone calls 
answered. The IRS doesn't have staff in customer service who can 
readily answer concerns that taxpayers have.
  I am outraged when I hear attorneys and accountants in my community 
say: Yeah, I had a client who had a legitimate claim and they would 
have gotten that $4,000 back, but I had to tell them that, because of 
the dysfunctionality and the underinvestment in the IRS, it would cost 
them more for me to fix it for them than they would get back.
  That is a scandal. We ought to make sure that we have a fully 
functioning IRS that meets the needs of the taxpayers, that gives them 
the answers that they need, that makes a very clear signal that 
everybody needs to fulfill their civic obligations to pay their taxes, 
and that businesses that cheat or forget are not going to get an unfair 
advantage over people who work hard to follow the rules. Our deficit 
would be $450 billion less if we did this properly.
  The SPEAKER pro tempore (Mr. Flores). The time of the gentleman has 
expired.
  Mr. LEWIS of Georgia. Mr. Speaker, I yield an additional 2 minutes to 
the gentleman from Oregon.
  Mr. BLUMENAUER. Mr. Speaker, I thank the gentleman because I wanted 
to make one other point. But I must confess that one of the other 
reasons that I am really deeply concerned about that now is that it 
wasn't just that we weren't able to do a deep dive on the causes of 
dysfunctionality and underinvestment in the IRS.
  It is no secret that one of my highest priorities as a Member of 
Congress and as a member of the Ways and Means Committee, was to be 
there to help us fulfill our responsibility on that committee dealing 
with the resources necessary to rebuild and renew America.
  It is no secret that America is falling apart while we are falling 
behind. We

[[Page H3420]]

have a growing gap in our Highway Trust Fund that has lost 40 percent 
of its purchasing power. We are not able to meet our current 
commitments, let alone the commitments we have in the future.
  The Ways and Means Committee allowed the Superfund tax to expire. So 
now we have a Superfund to clean up toxic waste that has blighted 
communities across the country, but we no longer have a tax that pays 
for it. So that burden has been shifted to innocent parties and local 
government.
  I have been working with the last three chairs of our Ways and Means 
Committee, asking that we have some robust hearings on our 
responsibility for transportation.
  The Transportation and Infrastructure Committee deals with the 
authorization of the Surface Transportation Assistance Act, but the 
Ways and Means Committee is responsible for funding it. A couple of 
weeks ago, there was a hearing in the Transportation and Infrastructure 
Committee on our job. They heard from witnesses from labor, from 
business, the U.S. Chamber, trucking associations--a wide range of 
people who came in and asked us to raise taxes on them.
  The SPEAKER pro tempore. The time of the gentleman has again expired.
  Mr. LEWIS of Georgia. Mr. Speaker, I yield an additional 1 minute to 
the gentleman from Oregon.
  Mr. BLUMENAUER. Mr. Speaker, I thank the gentleman. I really will 
wrap up. But we have had no hearing like the Transportation and 
Infrastructure Committee had. They brought all of the witnesses in to 
talk about our job.
  The last three chairs of the Ways and Means Committee from my 
Republican friends, in 7 years and 3 months, have had exactly one 
witness on our responsibility to raise the revenue for transportation, 
not one hearing. We had 380 hearings. We had one 5-minute witness who 
talked about the need to meet our responsibilities.
  Mr. Speaker, why do we have to go to the Transportation and 
Infrastructure Committee to hear our job? Isn't it about time that my 
Republican friends allowed us to have a week or two to listen to the 
wide array of people who want us to fulfill our responsibility to 
rebuild and renew America and to pay for it? It is past time for that 
hearing, and I hope we have it. And then we act on what people tell us.
  Ms. JENKINS of Kansas. Mr. Speaker, I yield 3 minutes to the 
gentleman from Iowa (Mr. Young).
  Mr. YOUNG of Iowa. Mr. Speaker, I want to thank my colleagues Ms. 
Jenkins and Mr. Lewis, and Chairman Brady and Ranking Member Neal, for 
working on such a commonsense bill that is very bipartisan, of course.
  We expect to see that kind of support on the floor as well as that of 
the committee.
  I rise in support of this great bill, H.R. 5444, the Taxpayer First 
Act. My bill--and I thank the committee--H.R. 5386, the IRS Fair 
Appeals Saving Taxpayers Act, or IRS FAST Act, was included in the 
final text of the underlying bill. So this bill, in particular, will 
help hardworking taxpayers navigate the IRS maze by requiring the IRS 
to turn over all nonprivileged documents to an individual or business 
if the taxpayer appeals the IRS' determination decision.
  Taxpayers are finally being given an equal playing field. Under 
current law, the IRS will only turn over a taxpayer's documents through 
a Freedom of Information Act, or FOIA request, a process which most 
taxpayers don't know even exists. It takes a long time and is difficult 
to navigate. In a court of law, everyone has the right to see the 
evidence that will be used against them, and the IRS is not above the 
law and should not be able to play games with taxpayers.
  Mr. Speaker, it shouldn't take a FOIA, a Freedom of Information Act, 
request to see what evidence the IRS is going to use against you. The 
IRS FAST Act, which is within H.R. 5444, will require the IRS to 
provide taxpayers with their case file prior to any review of their 
dispute with the IRS.
  It is common sense and the taxpayers have a victory here. Allowing 
taxpayers this opportunity is an important step toward bringing 
accountability and transparency to the IRS. It will improve the 
experience for taxpayers when navigating the IRS appeals process, 
saving them time and money.
  Mr. Speaker, I am pleased to see my bill included in the final 
legislation, H.R. 5444, the Taxpayer First Act, and I thank my 
colleagues for their leadership.
  Mr. LEWIS of Georgia. Mr. Speaker, I am pleased to yield 3 minutes to 
the gentleman from Illinois (Mr. Danny K. Davis), a member of the Ways 
and Means Committee.
  Mr. DANNY K. DAVIS of Illinois. Mr. Speaker, I want to thank Mr. 
Lewis for yielding.
  Mr. Speaker, I rise in support of H.R. 5444, the Taxpayer First Act. 
In particular, I commend Representatives Lewis and Jenkins for their 
leadership to prevent private debt collectors from pursuing tax 
collections from individuals and families earning under 250 percent of 
the Federal poverty level.
  I was deeply disturbed by the report of the Taxpayer Advocate which 
found that private debt collection enforcement this year targeted SSDI 
and SSI recipients, subjected impoverished Social Security recipients 
to levies, and put 45 percent of the studied taxpayers into installment 
agreements they could not afford.
  The private debt collection program appears to have increased the 
profits of debt collectors at the expense of the disabled, retirees, 
and impoverished--counter to IRS policy and decency. Creating an 
independent appeals process, improving the offer in compromise program, 
and modernizing the IRS are overdue improvements.
  So I thank Ranking Member Lewis and Chairman Jenkins for their 
leadership, and I urge all of my colleagues to support this important 
legislation.
  Ms. JENKINS of Kansas. Mr. Speaker, I yield 4 minutes to the 
gentleman from Tennessee (Mr. Kustoff).
  Mr. KUSTOFF of Tennessee. Mr. Speaker, I rise today in support of 
H.R. 5444, the Taxpayer First Act.
  I want to thank Chairman Jenkins and Ranking Member Lewis for their 
thoughtful approach to this legislation. Many of these reforms, I think 
we can all agree, are long overdue, and the American taxpayer deserves 
better.

                              {time}  1415

  By requiring the IRS to submit to Congress a comprehensive customer 
service strategy and overhauling the tools of enforcement in order to 
protect American taxpayers, we will be creating a culture at the agency 
that will focus on one singular mission, and that is taxpayers first. 
Frankly, Mr. Speaker, this should be the motto of every Federal agency.
  For the first time, this bill will codify an Independent Office of 
Appeals, so that all taxpayers have access to an administrative review 
process, and give Congress additional oversight over the agency itself.
  Additionally, the Taxpayer First Act simplifies enforcement actions 
of the IRS so that individuals and small-business owners understand 
their liabilities and what potential actions could be taken by the IRS.
  I also want to thank the committee for including a number of 
important provisions to this bill to protect taxpayers' identities and 
further combat cybersecurity threats.
  In recent years, we all know that millions of Americans have had 
their personal and financial information stolen and jeopardized through 
data breaches of companies like Equifax, Target, and even at the Office 
of Personnel Management.
  I am glad to see Congress continuing to push for proactive measures 
to protect Americans against tax fraud schemes by working with Federal, 
State, and private partners. These protections will be especially 
important as the IRS seeks to modernize its services and its IT 
systems.
  With the recent passage of the Tax Cuts and Jobs Act, Congress passed 
legislation to reform our Nation's Tax Code for the first time in over 
30 years. Today we have the opportunity to begin reforming the Internal 
Revenue Service for the first time in 20 years.
  Mr. Speaker, this is vitally important legislation, and I urge all 
Members to vote ``yes.''
  Mr. LEWIS of Georgia. Mr. Speaker, I yield 3 minutes to the 
gentlewoman from Alabama (Ms. Sewell). The Congresswoman is a member of 
the Ways and Means Committee.
  Ms. SEWELL of Alabama. Mr. Speaker, I rise today in support of H.R. 
5444,

[[Page H3421]]

the Taxpayer First Act. I want to take a point of personal privilege 
and congratulate the gentlewoman from Kansas and the gentleman from 
Georgia for working together and showing the Nation that, indeed, 
Democrats and Republicans can put party aside and actually get 
something done here in the Nation's Capitol. I especially want to thank 
the gentleman from Georgia, Congressman Lewis, who, of course, is a 
native son of Alabama.
  On this tax day, this bill is an opportunity for us to change the 
relationship many taxpayers have with the Internal Revenue Service. Tax 
season is a stressful time for millions of Americans, and the 
compliance burden on the average American and small-business owner is 
unnecessarily difficult. We are taking important steps today to make 
the tax filing experience more sensible, fairer, and more efficient.
  The base text of this bill includes the text of the bill that I 
introduced with our Republican colleague, Jason Smith, the Preserving 
Taxpayers' Rights Act. Our provisions, as a part of this bill, will 
introduce process reforms in four ways to help the Internal Revenue 
Service become more efficient and strengthen its ability to provide 
service to its customers.
  First, our provisions would maintain taxpayers' legal right to have 
their case heard by the independent and impartial IRS Office of Appeals 
to ensure the timely, efficient, and cost-effective resolution of any 
tax disputes between a taxpayer and the IRS.
  Secondly, it will ensure that cases the IRS designates for litigation 
can only be used where the matter involves a tax abuse that affects a 
large amount of taxpayers.
  Thirdly, the provision in our bill that is in this underlying text 
would ensure that the use of designated summonses that extend the time 
period for the IRS to assess a tax liability are properly authorized 
and only used when taxpayers are uncooperative and refuse to provide 
information requested by the IRS.
  Finally, the provision would also prevent the IRS from outsourcing 
Federal tax audits of private taxpayers to outside law firms.
  In summary, our provisions in the bill will improve the independent 
appeals process, ensuring that the existing right of appeal is 
maintained and strengthened for taxpayers.
  Mr. Speaker, overall, H.R. 5444 is a good bill that will make the tax 
filing experience much more sensible, fairer, and efficient. I urge all 
of my colleagues to support this bill.
  Ms. JENKINS of Kansas. Mr. Speaker, I yield 3 minutes to the 
gentleman from Illinois (Mr. LaHood).
  Mr. LaHOOD. Mr. Speaker, I want to thank Chairwoman Jenkins for 
yielding the time.
  Mr. Speaker, I rise today in support of H.R. 5444, the Taxpayer First 
Act.
  As I travel around my district, one of the common concerns that I 
hear and complaints that I hear is that the IRS is not user friendly, 
that it is not attentive and isn't efficient, effective, and 
accountable. We do a lot with this bill here today to change that. This 
is a good piece of legislation.
  I would like to thank Chairwoman Jenkins as well as Ranking Member 
Lewis for their hard work and leadership throughout the drafting of 
this legislation.
  Over the past several months, the House Ways and Means Committee and 
the Oversight Subcommittee, in particular, on which I serve, have 
focused on finding bipartisan legislative solutions which will make 
much-needed changes at the IRS. Ensuring an efficient, accountable, and 
transparent IRS is key to restoring the trust between taxpayers and the 
agency. It is also necessary for effective implementation of our 
reformed Tax Code.
  We have a responsibility to provide taxpayers with the tools and 
resources they need to make filing their taxes simpler, which was also 
a major goal of tax reform.
  We must ensure that the IRS puts customer service first so that 
taxpayers can have confidence that their information is protected and 
that we upgrade the IRS technology for the 21st century.
  Unfortunately, it has been over 20 years since major reforms were 
made to the IRS, but through the passage of this legislation and others 
on the floor this week, we have an opportunity to finally bring about 
these changes.
  I am also pleased that the Taxpayer First Act includes H.R. 5342, the 
Improving Assistance for Taxpayers Act, which I authored and introduced 
as part of this process.
  Currently, the Office of the Taxpayer Advocate, located within the 
IRS, represents taxpayer interests and helps address both individual 
and systemic issues at the agency.
  When it comes to addressing systemic issues, the Taxpayer Advocate 
can issue what is called a Taxpayer Advocate Directive. Unfortunately, 
these orders are not always responded to in a detailed and timely 
manner or even addressed at all.
  My bill aims to improve this process. Specifically, the IRS would be 
required to respond to Taxpayer Advocate Directives within 90 days. We 
also establish an appeals process when the advocate deems necessary. If 
detailed and timely responses are not provided, the Taxpayer Advocate 
must report such instances to the Congress. These changes will improve 
accountability and ensure substantive and timely answers for taxpayers 
dealing with an issue at the IRS.
  Mr. Speaker, after two decades and with a new Tax Code to be 
implemented, the time is now to improve the Internal Revenue Service 
through these bipartisan and commonsense reforms. We need to continue 
our work in putting taxpayers first, and I urge my colleagues to join 
me in supporting H.R. 5444.
  Mr. LEWIS of Georgia. Mr. Speaker, I yield myself such time as I may 
consume to close.
  Mr. Speaker, working to improve taxpayer service is no easy task. 
Every person in this body agrees on the importance of better access to 
quality taxpayer service, whether it is online, over the phone, or in 
person.
  The IRS is a complex organization that is responsible for a core 
function of our government. We asked for input from Members of 
Congress, Federal agencies, and the public. When we reached out, we 
were responsive and thoughtful. We will continue to work to improve the 
IRS, to support their staff, and to put taxpayers first.
  Again, I want to thank my friend, the gentlewoman from Kansas (Ms. 
Jenkins), the subcommittee members, and all of the staff for their 
hard, great, and good work for this bill.
  Most important, Members of Congress must remain focused on doing what 
is right, what is just, and what is in the best interests for every 
American taxpayer. I encourage all of our colleagues to vote ``yes'' on 
H.R. 5444.
  Mr. Speaker, I yield back the balance of my time.
  Ms. JENKINS of Kansas. Mr. Speaker, I yield myself the balance of my 
time.
  Mr. Speaker, this thoughtful, bipartisan legislation will help 
refocus the IRS on its taxpayer service mission.
  Mr. Speaker, I urge all Members to support this legislation, and I 
yield back the balance of my time.
  Mr. ESTES of Kansas. Mr. Speaker, I rise today in support of H.R. 
5444 . . . the Taxpayer First Act . . . which would reform the IRS to 
focus on serving the taxpayers instead of the federal government.
  This commonsense approach should be just that. However, under the 
previous administration, we saw how the IRS was weaponized against 
certain citizens and groups. This is unacceptable and the American 
people deserve better.
  This bill would require the IRS to focus on customer service by 
improving the dispute resolution process within the agency; requiring 
the IRS to maintain the free file program; ensuring the IRS notifies 
taxpayers when they are conducting an audit; and requiring the IRS to 
submit plans to improve customer service and efficiency to Congress.
  These reforms will make sure taxpayers are respected and treated 
fairly by the IRS. As President Reagan famously said, ``The most 
terrifying words in the English language are: `I'm from the government 
and I'm here to help.' '' That's a scary prospect but should not keep 
us from working to make government more accessible and customer 
friendly.
  This bill would refocus the mission of the IRS to actually help 
taxpayers, instead of only target and punish them.
  As a former state treasurer of Kansas, I understand the importance of 
being a good steward of taxpayer's hard-earned money. This bill works 
to accomplish that goal and I urge my colleagues to support it.
  The SPEAKER pro tempore. All time for debate has expired.
  Pursuant to House Resolution 831, the previous question is ordered on 
the bill, as amended.

[[Page H3422]]

  The SPEAKER pro tempore. The question is on the engrossment and third 
reading of the bill.
  The bill was ordered to be engrossed and read a third time, and was 
read the third time.
  The SPEAKER pro tempore. The question is on the passage of the bill.
  The question was taken; and the Speaker pro tempore announced that 
the ayes appeared to have it.
  Ms. JENKINS of Kansas. Mr. Speaker, on that I demand the yeas and 
nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further 
proceedings on this question will be postponed.

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