[Congressional Record Volume 164, Number 201 (Thursday, December 20, 2018)]
[House]
[Pages H10402-H10414]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                       TAXPAYER FIRST ACT OF 2018

  Mr. RICE of South Carolina. Mr. Speaker, I move to suspend the rules 
and pass the bill (H.R. 7227) to amend the Internal Revenue Code of 
1986 to modernize and improve the Internal Revenue Service, and for 
other purposes, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 7227

       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 of 2018''.
       (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 for this Act 
     is as follows:

Sec. 1. Short title; etc.

                    TITLE I--PUTTING TAXPAYERS FIRST

                Subtitle A--Independent Appeals Process

Sec. 1001. Establishment of Internal Revenue Service Independent Office 
              of Appeals.

                      Subtitle B--Improved Service

Sec. 1101. Comprehensive customer service strategy.
Sec. 1102. IRS Free File Program.
Sec. 1103. Low-income exception for payments otherwise required in 
              connection with a submission of an offer-in-compromise.

                    Subtitle C--Sensible Enforcement

Sec. 1201. Internal Revenue Service seizure requirements with respect 
              to structuring transactions.
Sec. 1202. Exclusion of interest received in action to recover property 
              seized by the Internal Revenue Service based on 
              structuring transaction.
Sec. 1203. Clarification of equitable relief from joint liability.
Sec. 1204. Modification of procedures for issuance of third-party 
              summons.
Sec. 1205. Private debt collection and special compliance personnel 
              program.
Sec. 1206. Reform of notice of contact of third parties.
Sec. 1207. Modification of authority to issue designated summons.
Sec. 1208. Limitation on access of non-Internal Revenue Service 
              employees to returns and return information.

                Subtitle D--Organizational Modernization

Sec. 1301. Office of the National Taxpayer Advocate.
Sec. 1302. Modernization of Internal Revenue Service organizational 
              structure.

                      Subtitle E--Other Provisions

Sec. 1401. Return preparation programs for applicable taxpayers.
Sec. 1402. Provision of information regarding low-income taxpayer 
              clinics.
Sec. 1403. Notice from IRS regarding closure of taxpayer assistance 
              centers.
Sec. 1404. Rules for seizure and sale of perishable goods restricted to 
              only perishable goods.
Sec. 1405. Whistleblower reforms.
Sec. 1406. Customer service information.
Sec. 1407. Misdirected tax refund deposits.

                       TITLE II--21ST CENTURY IRS

           Subtitle A--Cybersecurity and Identity Protection

Sec. 2001. Public-private partnership to address identity theft refund 
              fraud.
Sec. 2002. Recommendations of Electronic Tax Administration Advisory 
              Committee regarding identity theft refund fraud.
Sec. 2003. Information sharing and analysis center.
Sec. 2004. Compliance by contractors with confidentiality safeguards.
Sec. 2005. Report on electronic payments.
Sec. 2006. Identity protection personal identification numbers.

[[Page H10403]]

Sec. 2007. Single point of contact for tax-related identity theft 
              victims.
Sec. 2008. Notification of suspected identity theft.
Sec. 2009. Guidelines for stolen identity refund fraud cases.
Sec. 2010. Increased penalty for improper disclosure or use of 
              information by preparers of returns.

           Subtitle B--Development of Information Technology

Sec. 2101. Management of Internal Revenue Service information 
              technology.
Sec. 2102. Internet platform for Form 1099 filings.
Sec. 2103. Streamlined critical pay authority for information 
              technology positions.

 Subtitle C--Modernization of Consent-Based Income Verification System

Sec. 2201. Disclosure of taxpayer information for third-party income 
              verification.
Sec. 2202. Limit redisclosures and uses of consent-based disclosures of 
              tax return information.

             Subtitle D--Expanded Use of Electronic Systems

Sec. 2301. Electronic filing of returns.
Sec. 2302. Uniform standards for the use of electronic signatures for 
              disclosure authorizations to, and other authorizations 
              of, practitioners.
Sec. 2303. Payment of taxes by debit and credit cards.
Sec. 2304. Requirement that electronically prepared paper returns 
              include scannable code.
Sec. 2305. Authentication of users of electronic services accounts.

                      Subtitle E--Other Provisions

Sec. 2401. Repeal of provision regarding certain tax compliance 
              procedures and reports.
Sec. 2402. Comprehensive training strategy.

                  TITLE III--MISCELLANEOUS PROVISIONS

Subtitle A--Reform of Laws Governing Internal Revenue Service Employees

Sec. 3001. Electronic record retention.
Sec. 3002. Prohibition on rehiring any employee of the Internal Revenue 
              Service who was involuntarily separated from service for 
              misconduct.
Sec. 3003. Notification of unauthorized inspection or disclosure of 
              returns and return information.

        Subtitle B--Provisions Relating to Exempt Organizations

Sec. 3101. Mandatory e-filing by exempt organizations.
Sec. 3102. Notice required before revocation of tax exempt status for 
              failure to file return.

                         Subtitle C--Tax Court

Sec. 3301. Disqualification of judge or magistrate judge of the Tax 
              Court.
Sec. 3302. Opinions and judgments.
Sec. 3303. Title of special trial judge changed to magistrate judge of 
              the Tax Court.
Sec. 3304. Repeal of deadwood related to Board of Tax Appeals.

                    TITLE I--PUTTING TAXPAYERS FIRST

                Subtitle A--Independent Appeals Process

     SEC. 1001. 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 
     Commissioner 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 Commissioner 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 a 
     notice of deficiency authorized under section 6212 requests 
     referral to the Internal Revenue Service Independent Office 
     of Appeals and such request is denied, the Commissioner 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 prescribed under 
     subparagraph (C) for protesting the decision to deny the 
     request.
       ``(B) Report to congress.--The Commissioner 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 
     Commissioner of the Internal Revenue Service shall prescribe 
     procedures for protesting to the Commissioner of the Internal 
     Revenue Service 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 any case in which a conference with 
     the Internal Revenue Service Independent Office of Appeals 
     has been scheduled upon request of a specified taxpayer, 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 for the taxable year to which the dispute relates, 
     and
       ``(II) in the case of any other taxpayer, a taxpayer whose 
     gross receipts do not exceed $5,000,000 for the taxable year 
     to which the dispute relates.

       ``(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.--

[[Page H10404]]

       (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.

                      Subtitle B--Improved Service

     SEC. 1101. 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 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 (or the Secretary's delegate) 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. 1102. 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. 1103. 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.

                    Subtitle C--Sensible Enforcement

     SEC. 1201. 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--

       ``(I) make a good faith effort to find all persons with an 
     ownership interest in such property; and
       ``(II) provide each such person so found 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 an ownership 
     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. 1202. 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. 139H. 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. 139H. 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. 1203. 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

[[Page H10405]]

     or requests filed or pending on or after the date of the 
     enactment of this Act.

     SEC. 1204. 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. 1205. PRIVATE DEBT COLLECTION AND SPECIAL COMPLIANCE 
                   PERSONNEL PROGRAM.

       (a) Certain Tax Receivables Not Eligible for Collection 
     Under Tax Collection Contracts.--Section 6306(d)(3) is 
     amended by striking ``or'' at the end of subparagraph (C) and 
     by inserting after subparagraph (D) the following new 
     subparagraphs:
       ``(E) a taxpayer substantially all of whose income consists 
     of disability insurance benefits under section 223 of the 
     Social Security Act or supplemental security income benefits 
     under title XVI of the Social Security Act (including 
     supplemental security income benefits of the type described 
     in section 1616 of such Act or section 212 of Public Law 93-
     66), or
       ``(F) 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 
     200 percent of the applicable poverty level (as determined by 
     the Secretary).''.
       (b) Determination of Inactive Tax Receivables Eligible for 
     Collection Under Tax Collection Contracts.--Section 
     6306(c)(2)(A)(ii) is amended by striking ``more than \1/3\ of 
     the period of the applicable statute of limitation has 
     lapsed'' and inserting ``more than 2 years has passed since 
     assessment''.
       (c) Maximum Length of Installment Agreements Offered Under 
     Tax Collection Contracts.--Section 6306(b)(1)(B) is amended 
     by striking ``5 years'' and inserting ``7 years''.
       (d) Clarification That Special Compliance Personnel Program 
     Account May Be Used for Program Costs.--
       (1) In general.--Section 6307(b) is amended--
       (A) in paragraph (2), by striking all that follows ``under 
     such program'' and inserting a period; and
       (B) in paragraph (3), by striking all that follows ``out of 
     such account'' and inserting ``for other than program 
     costs''.
       (2) Communications, software, and technology costs treated 
     as program costs.--Section 6307(d)(2)(B) is amended by 
     striking ``telecommunications'' and inserting 
     ``communications, software, technology''.
       (3) Conforming amendment.--Section 6307(d)(2) is amended by 
     striking ``and'' at the end of subparagraph (A), by striking 
     the period at the end of subparagraph (B) and inserting ``, 
     and'', and by inserting after subparagraph (B) the following 
     new subparagraph:
       ``(C) reimbursement of the Internal Revenue Service or 
     other government agencies for the cost of administering the 
     qualified tax collection program under section 6306.''.
       (e) Effective Dates.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendments made by this section shall apply 
     to tax receivables identified by the Secretary (or the 
     Secretary's delegate) after December 31, 2019.
       (2) Maximum length of installment agreements.--The 
     amendment made by subsection (c) shall apply to contracts 
     entered into after the date of the enactment of this Act.
       (3) Use of special compliance personnel program account.--
     The amendment made by subsection (d) shall apply to amounts 
     expended from the special compliance personnel program 
     account after the date of the enactment of this Act.

     SEC. 1206. 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. 1207. MODIFICATION OF AUTHORITY TO ISSUE DESIGNATED 
                   SUMMONS.

       (a) In General.--Paragraph (1) of section 6503(j) is 
     amended by striking ``coordinated examination program'' and 
     inserting ``coordinated industry case program''.
       (b) Requirements for Summons.--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 Commissioner 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,''.

       (c) 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.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to summonses issued after the date of the 
     enactment of this Act.

     SEC. 1208. 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.--The amendment made by this section--
       (1) shall take effect on the date of the enactment of this 
     Act; and
       (2) shall not fail to apply to a contract in effect under 
     section 6103(n) of the Internal Revenue Code of 1986 merely 
     because such contract was in effect before the date of the 
     enactment of this Act.

                Subtitle D--Organizational Modernization

     SEC. 1301. 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 
     Commissioner of the Internal Revenue Service--
       ``(A) the Commissioner or a Deputy Commissioner 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 Commissioner, the National Taxpayer 
     Advocate may (not later than 90 days after such modification 
     or rescission) appeal to the Commissioner and the 
     Commissioner 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 
     Commissioner 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 
     of the'' 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:

[[Page H10406]]

       ``(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. 1302. MODERNIZATION OF INTERNAL REVENUE SERVICE 
                   ORGANIZATIONAL STRUCTURE.

       (a) In General.--Not later than September 30, 2020, the 
     Commissioner 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 
     Commissioner.
       (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 Commissioner of the Internal Revenue Service 
     submits to Congress the plan described in subsection (a).

                      Subtitle E--Other Provisions

     SEC. 1401. RETURN PREPARATION PROGRAMS FOR APPLICABLE 
                   TAXPAYERS.

       (a) In General.--Chapter 77 is amended by inserting after 
     section 7526 the following new section:

     ``SEC. 7526A. RETURN PREPARATION PROGRAMS FOR APPLICABLE 
                   TAXPAYERS.

       ``(a) Establishment of Volunteer Income Tax Assistance 
     Matching Grant Program.--The Secretary shall establish a 
     Community Volunteer Income Tax Assistance Matching Grant 
     Program under which the Secretary may, subject to the 
     availability of appropriated funds, make grants to provide 
     matching funds for the development, expansion, or 
     continuation of qualified return preparation programs 
     assisting applicable taxpayers and members of underserved 
     populations.
       ``(b) Use of Funds.--
       ``(1) In general.--Qualified return preparation programs 
     may use grants received under this section for--
       ``(A) ordinary and necessary costs associated with program 
     operation in accordance with cost principles under the 
     applicable Office of Management and Budget circular, 
     including--
       ``(i) wages or salaries of persons coordinating the 
     activities of the program,
       ``(ii) developing training materials, conducting training, 
     and performing quality reviews of the returns prepared under 
     the program,
       ``(iii) equipment purchases, and
       ``(iv) vehicle-related expenses associated with remote or 
     rural tax preparation services,
       ``(B) outreach and educational activities described in 
     subsection (c)(2)(B), and
       ``(C) services related to financial education and 
     capability, asset development, and the establishment of 
     savings accounts in connection with tax return preparation.
       ``(2) Requirement of matching funds.--A qualified return 
     preparation program must provide matching funds on a dollar-
     for-dollar basis for all grants provided under this section. 
     Matching funds may include--
       ``(A) the salary (including fringe benefits) of individuals 
     performing services for the program,
       ``(B) the cost of equipment used in the program, and
       ``(C) other ordinary and necessary costs associated with 
     the program.

     Indirect expenses, including general overhead of any entity 
     administering the program, shall not be counted as matching 
     funds.
       ``(c) Application.--
       ``(1) In general.--Each applicant for a grant under this 
     section shall submit an application to the Secretary at such 
     time, in such manner, and containing such information as the 
     Secretary may reasonably require.
       ``(2) Priority.--In awarding grants under this section, the 
     Secretary shall give priority to applications which 
     demonstrate--
       ``(A) assistance to applicable taxpayers, with emphasis on 
     outreach to, and services for, such taxpayers,
       ``(B) taxpayer outreach and educational activities relating 
     to eligibility and availability of income supports available 
     through this title, including the earned income tax credit, 
     and
       ``(C) specific outreach and focus on one or more 
     underserved populations.
       ``(3) Amounts taken into account.--In determining matching 
     grants under this section, the Secretary shall only take into 
     account amounts provided by the qualified return preparation 
     program for expenses described in subsection (b).
       ``(d) Program Adherence.--
       ``(1) In general.--The Secretary shall establish procedures 
     for, and shall conduct not less frequently than once every 5 
     calendar years during which a qualified return preparation 
     program is operating under a grant under this section, 
     periodic site visits--
       ``(A) to ensure the program is carrying out the purposes of 
     this section, and
       ``(B) to determine whether the program meets such program 
     adherence standards as the Secretary shall by regulation or 
     other guidance prescribe.
       ``(2) Additional requirements for grant recipients not 
     meeting program adherence standards.--In the case of any 
     qualified return preparation program which--
       ``(A) is awarded a grant under this section, and
       ``(B) is subsequently determined--
       ``(i) not to meet the program adherence standards described 
     in paragraph (1)(B), or
       ``(ii) not to be otherwise carrying out the purposes of 
     this section,

     such program shall not be eligible for any additional grants 
     under this section unless such program provides sufficient 
     documentation of corrective measures established to address 
     any such deficiencies determined.
       ``(e) Definitions.--For purposes of this section--
       ``(1) Qualified return preparation program.--The term 
     `qualified return preparation program' means any program--
       ``(A) which provides assistance to individuals, not less 
     than 90 percent of whom are applicable taxpayers, in 
     preparing and filing Federal income tax returns,
       ``(B) which is administered by a qualified entity,
       ``(C) in which all volunteers who assist in the preparation 
     of Federal income tax returns meet the training requirements 
     prescribed by the Secretary, and
       ``(D) which uses a quality review process which reviews 100 
     percent of all returns.
       ``(2) Qualified entity.--
       ``(A) In general.--The term `qualified entity' means any 
     entity which--
       ``(i) is an eligible organization,
       ``(ii) is in compliance with Federal tax filing and payment 
     requirements,
       ``(iii) is not debarred or suspended from Federal 
     contracts, grants, or cooperative agreements, and
       ``(iv) agrees to provide documentation to substantiate any 
     matching funds provided pursuant to the grant program under 
     this section.
       ``(B) Eligible organization.--The term `eligible 
     organization' means--
       ``(i) an institution of higher education which is described 
     in section 102 (other than subsection (a)(1)(C) thereof) of 
     the Higher Education Act of 1965 (20 U.S.C. 1002), as in 
     effect on the date of the enactment of this section, and 
     which has not been disqualified from participating in a 
     program under title IV of such Act,
       ``(ii) an organization described in section 501(c) and 
     exempt from tax under section 501(a),
       ``(iii) a local government agency, including--

       ``(I) a county or municipal government agency, and

[[Page H10407]]

       ``(II) an Indian tribe, as defined in section 4(13) of the 
     Native American Housing Assistance and Self-Determination Act 
     of 1996 (25 U.S.C. 4103(13)), including any tribally 
     designated housing entity (as defined in section 4(22) of 
     such Act (25 U.S.C. 4103(22))), tribal subsidiary, 
     subdivision, or other wholly owned tribal entity,

       ``(iv) a local, State, regional, or national coalition 
     (with one lead organization which meets the eligibility 
     requirements of clause (i), (ii), or (iii) acting as the 
     applicant organization), or
       ``(v) in the case of applicable taxpayers and members of 
     underserved populations with respect to which no 
     organizations described in the preceding clauses are 
     available--

       ``(I) a State government agency, or
       ``(II) an office providing Cooperative Extension services 
     (as established at the land-grant colleges and universities 
     under the Smith-Lever Act of May 8, 1914).

       ``(3) Applicable taxpayers.--The term `applicable taxpayer' 
     means a taxpayer whose income for the taxable year does not 
     exceed an amount equal to the completed phaseout amount under 
     section 32(b) for a married couple filing a joint return with 
     three or more qualifying children, as determined in a revenue 
     procedure or other published guidance.
       ``(4) Underserved population.--The term `underserved 
     population' includes populations of persons with 
     disabilities, persons with limited English proficiency, 
     Native Americans, individuals living in rural areas, members 
     of the Armed Forces and their spouses, and the elderly.
       ``(f) Special Rules and Limitations.--
       ``(1) Duration of grants.--Upon application of a qualified 
     return preparation program, the Secretary is authorized to 
     award a multi-year grant not to exceed 3 years.
       ``(2) Aggregate limitation.--Unless otherwise provided by 
     specific appropriation, the Secretary shall not allocate more 
     than $30,000,000 per fiscal year (exclusive of costs of 
     administering the program) to grants under this section.
       ``(g) Promotion of Programs.--
       ``(1) In general.--The Secretary shall promote tax 
     preparation through qualified return preparation programs 
     through the use of mass communications and other means.
       ``(2) Provision of information regarding qualified return 
     preparation programs.--The Secretary may provide taxpayers 
     information regarding qualified return preparation programs 
     receiving grants under this section.
       ``(3) VITA grantee referral.--Qualified return preparation 
     programs receiving a grant under this section are encouraged, 
     in appropriate cases, to--
       ``(A) advise taxpayers of the availability of, and 
     eligibility requirements for receiving, advice and assistance 
     from qualified low-income taxpayer clinics receiving funding 
     under section 7526, and
       ``(B) provide information regarding the location of, and 
     contact information for, such clinics.''.
       (b) Clerical Amendment.--The table of sections for chapter 
     77 is amended by inserting after the item relating to section 
     7526 the following new item:

``Sec. 7526A. Return preparation programs for applicable taxpayers.''.

     SEC. 1402. PROVISION OF INFORMATION REGARDING LOW-INCOME 
                   TAXPAYER CLINICS.

       (a) In General.--Section 7526(c) of the Internal Revenue 
     Code of 1986 is amended by adding at the end the following 
     new paragraph:
       ``(6) Provision of information regarding qualified low-
     income taxpayer clinics.--Notwithstanding any other provision 
     of law, officers and employees of the Department of the 
     Treasury may--
       ``(A) advise taxpayers of the availability of, and 
     eligibility requirements for receiving, advice and assistance 
     from one or more specific qualified low-income taxpayer 
     clinics receiving funding under this section, and
       ``(B) provide information regarding the location of, and 
     contact information for, such clinics.''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 1403. NOTICE FROM IRS REGARDING CLOSURE OF TAXPAYER 
                   ASSISTANCE CENTERS.

       Not later than 90 days before the date that a proposed 
     closure of a Taxpayer Assistance Center would take effect, 
     the Secretary of the Treasury (or the Secretary's delegate) 
     shall--
       (1) make publicly available (including by non-electronic 
     means) a notice which--
       (A) identifies the Taxpayer Assistance Center proposed for 
     closure and the date of such proposed closure; and
       (B) identifies the relevant alternative sources of taxpayer 
     assistance which may be utilized by taxpayers affected by 
     such proposed closure; and
       (2) submit to Congress a written report that includes--
       (A) the information included in the notice described in 
     paragraph (1);
       (B) the reasons for such proposed closure; and
       (C) such other information as the Secretary may determine 
     appropriate.

     SEC. 1404. RULES FOR SEIZURE AND SALE OF PERISHABLE GOODS 
                   RESTRICTED TO ONLY PERISHABLE GOODS.

       (a) In General.--Section 6336 of the Internal Revenue Code 
     of 1986 is amended by striking ``or become greatly reduced in 
     price or value by keeping, or that such property cannot be 
     kept without great expense''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property seized after the date of the 
     enactment of this Act.

     SEC. 1405. WHISTLEBLOWER REFORMS.

       (a) Modifications to Disclosure Rules for Whistleblowers.--
       (1) In general.--Section 6103(k) is amended by adding at 
     the end the following new paragraph:
       ``(13) Disclosure to whistleblowers.--
       ``(A) In general.--The Secretary may disclose, to any 
     individual providing information relating to any purpose 
     described in paragraph (1) or (2) of section 7623(a), return 
     information related to the investigation of any taxpayer with 
     respect to whom the individual has provided such information, 
     but only to the extent that such disclosure is necessary in 
     obtaining information, which is not otherwise reasonably 
     available, with respect to the correct determination of tax 
     liability for tax, or the amount to be collected with respect 
     to the enforcement of any other provision of this title.
       ``(B) Updates on whistleblower investigations.--The 
     Secretary shall disclose to an individual providing 
     information relating to any purpose described in paragraph 
     (1) or (2) of section 7623(a) the following:
       ``(i) Not later than 60 days after a case for which the 
     individual has provided information has been referred for an 
     audit or examination, a notice with respect to such referral.
       ``(ii) Not later than 60 days after a taxpayer with respect 
     to whom the individual has provided information has made a 
     payment of tax with respect to tax liability to which such 
     information relates, a notice with respect to such payment.
       ``(iii) Subject to such requirements and conditions as are 
     prescribed by the Secretary, upon a written request by such 
     individual--

       ``(I) information on the status and stage of any 
     investigation or action related to such information, and
       ``(II) in the case of a determination of the amount of any 
     award under section 7623(b), the reasons for such 
     determination.

     Clause (iii) shall not apply to any information if the 
     Secretary determines that disclosure of such information 
     would seriously impair Federal tax administration. 
     Information described in clauses (i), (ii), and (iii) may be 
     disclosed to a designee of the individual providing such 
     information in accordance with guidance provided by the 
     Secretary.''.
       (2) Conforming amendments.--
       (A) Confidentiality of information.--Section 6103(a)(3) is 
     amended by striking ``subsection (k)(10)'' and inserting 
     ``paragraph (10) or (13) of subsection (k)''.
       (B) Penalty for unauthorized disclosure.--Section 
     7213(a)(2) is amended by striking ``(k)(10)'' and inserting 
     ``(k)(10) or (13)''.
       (C) Coordination with authority to disclose for 
     investigative purposes.--Section 6103(k)(6) is amended by 
     adding at the end the following new sentence: ``This 
     paragraph shall not apply to any disclosure to an individual 
     providing information relating to any purpose described in 
     paragraph (1) or (2) of section 7623(a) which is made under 
     paragraph (13)(A).''.
       (b) Protection Against Retaliation.--Section 7623 is 
     amended by adding at the end the following new subsection:
       ``(d) Civil Action To Protect Against Retaliation Cases.--
       ``(1) Anti-retaliation whistleblower protection for 
     employees.--No employer, or any officer, employee, 
     contractor, subcontractor, or agent of such employer, may 
     discharge, demote, suspend, threaten, harass, or in any other 
     manner discriminate against an employee in the terms and 
     conditions of employment (including through an act in the 
     ordinary course of such employee's duties) in reprisal for 
     any lawful act done by the employee--
       ``(A) to provide information, cause information to be 
     provided, or otherwise assist in an investigation regarding 
     underpayment of tax or any conduct which the employee 
     reasonably believes constitutes a violation of the internal 
     revenue laws or any provision of Federal law relating to tax 
     fraud, when the information or assistance is provided to the 
     Internal Revenue Service, the Secretary of Treasury, the 
     Treasury Inspector General for Tax Administration, the 
     Comptroller General of the United States, the Department of 
     Justice, the United States Congress, a person with 
     supervisory authority over the employee, or any other person 
     working for the employer who has the authority to 
     investigate, discover, or terminate misconduct, or
       ``(B) to testify, participate in, or otherwise assist in 
     any administrative or judicial action taken by the Internal 
     Revenue Service relating to an alleged underpayment of tax or 
     any violation of the internal revenue laws or any provision 
     of Federal law relating to tax fraud.
       ``(2) Enforcement action.--
       ``(A) In general.--A person who alleges discharge or other 
     reprisal by any person in violation of paragraph (1) may seek 
     relief under paragraph (3) by--
       ``(i) filing a complaint with the Secretary of Labor, or
       ``(ii) if the Secretary of Labor has not issued a final 
     decision within 180 days of the filing of the complaint and 
     there is no showing that such delay is due to the bad faith 
     of

[[Page H10408]]

     the claimant, bringing an action at law or equity for de novo 
     review in the appropriate district court of the United 
     States, which shall have jurisdiction over such an action 
     without regard to the amount in controversy.
       ``(B) Procedure.--
       ``(i) In general.--An action under subparagraph (A)(i) 
     shall be governed under the rules and procedures set forth in 
     section 42121(b) of title 49, United States Code.
       ``(ii) Exception.--Notification made under section 
     42121(b)(1) of title 49, United States Code, shall be made to 
     the person named in the complaint and to the employer.
       ``(iii) Burdens of proof.--An action brought under 
     subparagraph (A)(ii) shall be governed by the legal burdens 
     of proof set forth in section 42121(b) of title 49, United 
     States Code, except that in applying such section--

       ``(I) `behavior described in paragraph (1)' shall be 
     substituted for `behavior described in paragraphs (1) through 
     (4) of subsection (a)' each place it appears in paragraph 
     (2)(B) thereof, and
       ``(II) `a violation of paragraph (1)' shall be substituted 
     for `a violation of subsection (a)' each place it appears.

       ``(iv) Statute of limitations.--A complaint under 
     subparagraph (A)(i) shall be filed not later than 180 days 
     after the date on which the violation occurs.
       ``(v) Jury trial.--A party to an action brought under 
     subparagraph (A)(ii) shall be entitled to trial by jury.
       ``(3) Remedies.--
       ``(A) In general.--An employee prevailing in any action 
     under paragraph (2)(A) shall be entitled to all relief 
     necessary to make the employee whole.
       ``(B) Compensatory damages.--Relief for any action under 
     subparagraph (A) shall include--
       ``(i) reinstatement with the same seniority status that the 
     employee would have had, but for the reprisal,
       ``(ii) the sum of 200 percent of the amount of back pay and 
     100 percent of all lost benefits, with interest, and
       ``(iii) compensation for any special damages sustained as a 
     result of the reprisal, including litigation costs, expert 
     witness fees, and reasonable attorney fees.
       ``(4) Rights retained by employee.--Nothing in this section 
     shall be deemed to diminish the rights, privileges, or 
     remedies of any employee under any Federal or State law, or 
     under any collective bargaining agreement.
       ``(5) Nonenforceability of certain provisions waiving 
     rights and remedies or requiring arbitration of disputes.--
       ``(A) Waiver of rights and remedies.--The rights and 
     remedies provided for in this subsection may not be waived by 
     any agreement, policy form, or condition of employment, 
     including by a predispute arbitration agreement.
       ``(B) Predispute arbitration agreements.--No predispute 
     arbitration agreement shall be valid or enforceable, if the 
     agreement requires arbitration of a dispute arising under 
     this subsection.''.
       (c) Effective Date.--
       (1) In general.--The amendments made by subsection (a) 
     shall apply to disclosures made after the date of the 
     enactment of this Act.
       (2) Civil protection.--The amendment made by subsection (b) 
     shall take effect on the date of the enactment of this Act.

     SEC. 1406. CUSTOMER SERVICE INFORMATION.

       The Secretary of the Treasury (or the Secretary's delegate) 
     shall provide helpful information to taxpayers placed on hold 
     during a telephone call to any Internal Revenue Service help 
     line, including the following:
       (1) Information about common tax scams.
       (2) Information on where and how to report tax scams.
       (3) Additional advice on how taxpayers can protect 
     themselves from identity theft and tax scams.

     SEC. 1407. MISDIRECTED TAX REFUND DEPOSITS.

       Section 6402 is amended by adding at the end the following 
     new subsection:
       ``(n) Misdirected Direct Deposit Refund.--Not later than 
     the date which is 6 months after the date of the enactment of 
     the Taxpayer First Act of 2018, the Secretary shall prescribe 
     regulations to establish procedures to allow for--
       ``(1) taxpayers to report instances in which a refund made 
     by the Secretary by electronic funds transfer was erroneously 
     delivered to an account at a financial institution for which 
     the taxpayer is not the owner;
       ``(2) coordination with financial institutions for the 
     purpose of--
       ``(A) identifying erroneous payments described in paragraph 
     (1); and
       ``(B) recovery of the erroneously transferred amounts; and
       ``(3) the refund to be delivered to the correct account of 
     the taxpayer.''.

                       TITLE II--21ST CENTURY IRS

           Subtitle A--Cybersecurity and Identity Protection

     SEC. 2001. PUBLIC-PRIVATE PARTNERSHIP TO ADDRESS IDENTITY 
                   THEFT REFUND FRAUD.

       The Secretary of the Treasury (or the Secretary's delegate) 
     shall work collaboratively with the public and private 
     sectors to protect taxpayers from identity theft refund 
     fraud.

     SEC. 2002. RECOMMENDATIONS OF ELECTRONIC TAX ADMINISTRATION 
                   ADVISORY COMMITTEE REGARDING IDENTITY THEFT 
                   REFUND FRAUD.

       The Secretary of the Treasury shall ensure that the 
     advisory group convened by the Secretary pursuant to section 
     2001(b)(2) of the Internal Revenue Service Restructuring and 
     Reform Act of 1998 (commonly known as the Electronic Tax 
     Administration Advisory Committee) studies (including by 
     providing organized public forums) and makes recommendations 
     to the Secretary regarding methods to prevent identity theft 
     and refund fraud.

     SEC. 2003. INFORMATION SHARING AND ANALYSIS CENTER.

       (a) In General.--The Secretary of the Treasury (or the 
     Secretary's delegate) may participate in an information 
     sharing and analysis center to centralize, standardize, and 
     enhance data compilation and analysis to facilitate sharing 
     actionable data and information with respect to identity 
     theft tax refund fraud.
       (b) Development of Performance Metrics.--The Secretary of 
     the Treasury (or the Secretary's delegate) shall develop 
     metrics for measuring the success of such center in detecting 
     and preventing identity theft tax refund fraud.
       (c) Disclosure.--
       (1) In general.--Section 6103(k), as amended by this Act, 
     is amended by adding at the end the following new paragraph:
       ``(14) Disclosure of return information for purposes of 
     cybersecurity and the prevention of identity theft tax refund 
     fraud.--
       ``(A) In general.--Under such procedures and subject to 
     such conditions as the Secretary may prescribe, the Secretary 
     may disclose specified return information to specified ISAC 
     participants to the extent that the Secretary determines such 
     disclosure is in furtherance of effective Federal tax 
     administration relating to the detection or prevention of 
     identity theft tax refund fraud, validation of taxpayer 
     identity, authentication of taxpayer returns, or detection or 
     prevention of cybersecurity threats.
       ``(B) Specified isac participants.--For purposes of this 
     paragraph--
       ``(i) In general.--The term `specified ISAC participant' 
     means--

       ``(I) any person designated by the Secretary as having 
     primary responsibility for a function performed with respect 
     to the information sharing and analysis center described in 
     section 2003(a) of the Taxpayer First Act of 2018, and
       ``(II) any person subject to the requirements of section 
     7216 and which is a participant in such information sharing 
     and analysis center.

       ``(ii) Information sharing agreement.--Such term shall not 
     include any person unless such person has entered into a 
     written agreement with the Secretary setting forth the terms 
     and conditions for the disclosure of information to such 
     person under this paragraph, including requirements regarding 
     the protection and safeguarding of such information by such 
     person.
       ``(C) Specified return information.--For purposes of this 
     paragraph, the term `specified return information' means--
       ``(i) in the case of a return which is in connection with a 
     case of potential identity theft refund fraud--

       ``(I) in the case of such return filed electronically, the 
     internet protocol address, device identification, email 
     domain name, speed of completion, method of authentication, 
     refund method, and such other return information related to 
     the electronic filing characteristics of such return as the 
     Secretary may identify for purposes of this subclause, and
       ``(II) in the case of such return prepared by a tax return 
     preparer, identifying information with respect to such tax 
     return preparer, including the preparer taxpayer 
     identification number and electronic filer identification 
     number of such preparer,

       ``(ii) in the case of a return which is in connection with 
     a case of a identity theft refund fraud which has been 
     confirmed by the Secretary (pursuant to such procedures as 
     the Secretary may provide), the information referred to in 
     subclauses (I) and (II) of clause (i), the name and taxpayer 
     identification number of the taxpayer as it appears on the 
     return, and any bank account and routing information provided 
     for making a refund in connection with such return, and
       ``(iii) in the case of any cybersecurity threat to the 
     Internal Revenue Service, information similar to the 
     information described in subclauses (I) and (II) of clause 
     (i) with respect to such threat.
       ``(D) Restriction on use of disclosed information.--
       ``(i) Designated third parties.--Any return information 
     received by a person described in subparagraph (B)(i)(I) 
     shall be used only for the purposes of and to the extent 
     necessary in--

       ``(I) performing the function such person is designated to 
     perform under such subparagraph,
       ``(II) facilitating disclosures authorized under 
     subparagraph (A) to persons described in subparagraph 
     (B)(i)(II), and
       ``(III) facilitating disclosures authorized under 
     subsection (d) to participants in such information sharing 
     and analysis center.

       ``(ii) Return preparers.--Any return information received 
     by a person described in subparagraph (B)(i)(II) shall be 
     treated for purposes of section 7216 as information furnished 
     to such person for, or in connection with, the preparation of 
     a return of the tax imposed under chapter 1.
       ``(E) Data protection and safeguards.--Return information 
     disclosed under this

[[Page H10409]]

     paragraph shall be subject to such protections and safeguards 
     as the Secretary may require in regulations or other guidance 
     or in the written agreement referred to in subparagraph 
     (B)(ii). Such written agreement shall include a requirement 
     that any unauthorized access to information disclosed under 
     this paragraph, and any breach of any system in which such 
     information is held, be reported to the Treasury Inspector 
     General for Tax Administration.''.
       (2) Application of civil and criminal penalties.--
       (A) Section 6103(a)(3), as amended by this Act, is amended 
     by striking ``or (13)'' and inserting ``(13), or (14)''.
       (B) Section 7213(a)(2), as amended by this Act, is amended 
     by striking ``or (13)'' and inserting ``(13), or (14)''.

     SEC. 2004. COMPLIANCE BY CONTRACTORS WITH CONFIDENTIALITY 
                   SAFEGUARDS.

       (a) In General.--Section 6103(p) is amended by adding at 
     the end the following new paragraph:
       ``(9) Disclosure to contractors and other agents.--
     Notwithstanding any other provision of this section, no 
     return or return information shall be disclosed to any 
     contractor or other agent of a Federal, State, or local 
     agency unless such agency, to the satisfaction of the 
     Secretary--
       ``(A) has requirements in effect which require each such 
     contractor or other agent which would have access to returns 
     or return information to provide safeguards (within the 
     meaning of paragraph (4)) to protect the confidentiality of 
     such returns or return information,
       ``(B) agrees to conduct an on-site review every 3 years (or 
     a mid-point review in the case of contracts or agreements of 
     less than 3 years in duration) of each contractor or other 
     agent to determine compliance with such requirements,
       ``(C) submits the findings of the most recent review 
     conducted under subparagraph (B) to the Secretary as part of 
     the report required by paragraph (4)(E), and
       ``(D) certifies to the Secretary for the most recent annual 
     period that such contractor or other agent is in compliance 
     with all such requirements.

     The certification required by subparagraph (D) shall include 
     the name and address of each contractor or other agent, a 
     description of the contract or agreement with such contractor 
     or other agent, and the duration of such contract or 
     agreement. The requirements of this paragraph shall not apply 
     to disclosures pursuant to subsection (n) for purposes of 
     Federal tax administration.''.
       (b) Conforming Amendment.--Section 6103(p)(8)(B) is amended 
     by inserting ``or paragraph (9)'' after ``subparagraph (A)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to disclosures made after December 31, 2022.

     SEC. 2005. REPORT ON ELECTRONIC PAYMENTS.

       Not later than 2 years after the date of the enactment of 
     this Act, the Secretary of the Treasury (or the Secretary's 
     delegate), in coordination with the Bureau of Fiscal Service 
     and the Internal Revenue Service, and in consultation with 
     private sector financial institutions, shall submit a written 
     report to Congress describing how the government can utilize 
     new payment platforms to increase the number of tax refunds 
     paid by electronic funds transfer. Such report shall weigh 
     the interests of reducing identity theft tax refund fraud, 
     reducing the Federal Government's costs in delivering tax 
     refunds, the costs and any associated fees charged to 
     taxpayers (including monthly and point-of-service fees) to 
     access their tax refunds, the impact on individuals who do 
     not have access to financial accounts or institutions, and 
     ensuring payments are made to accounts at a financial 
     institution that complies with section 21 of the Federal 
     Deposit Insurance Act, chapter 2 of title I of Public Law 91-
     508, and subchapter II of chapter 53 of title 31, United 
     States Code (commonly referred to collectively as the ``Bank 
     Secrecy Act'') and the USA PATRIOT Act. Such report shall 
     include any legislative recommendations necessary to 
     accomplish these goals.

     SEC. 2006. IDENTITY PROTECTION PERSONAL IDENTIFICATION 
                   NUMBERS.

       (a) In General.--Subject to subsection (b), the Secretary 
     of the Treasury or the Secretary's delegate (hereafter 
     referred to in this section as the ``Secretary'') shall 
     establish a program to issue, upon the request of any 
     individual, a number which may be used in connection with 
     such individual's social security number (or other 
     identifying information with respect to such individual as 
     determined by the Secretary) to assist the Secretary in 
     verifying such individual's identity.
       (b) Requirements.--
       (1) Annual expansion.--For each calendar year beginning 
     after the date of the enactment of this Act, the Secretary 
     shall provide numbers through the program described in 
     subsection (a) to individuals residing in such States as the 
     Secretary deems appropriate, provided that the total number 
     of States served by such program during such year is greater 
     than the total number of States served by such program during 
     the preceding year.
       (2) Nationwide availability.--Not later than 5 years after 
     the date of the enactment of this Act, the Secretary shall 
     ensure that the program described in subsection (a) is made 
     available to any individual residing in the United States.

     SEC. 2007. SINGLE POINT OF CONTACT FOR TAX-RELATED IDENTITY 
                   THEFT VICTIMS.

       (a) In General.--The Secretary of the Treasury (or the 
     Secretary's delegate) shall establish and implement 
     procedures to ensure that any taxpayer whose return has been 
     delayed or otherwise adversely affected due to tax-related 
     identity theft has a single point of contact at the Internal 
     Revenue Service throughout the processing of the taxpayer's 
     case. The single point of contact shall track the taxpayer's 
     case to completion and coordinate with other Internal Revenue 
     Service employees to resolve case issues as quickly as 
     possible.
       (b) Single Point of Contact.--
       (1) In general.--For purposes of subsection (a), the single 
     point of contact shall consist of a team or subset of 
     specially trained employees who--
       (A) have the ability to work across functions to resolve 
     the issues involved in the taxpayer's case; and
       (B) shall be accountable for handling the case until its 
     resolution.
       (2) Team or subset.--The employees included within the team 
     or subset described in paragraph (1) may change as required 
     to meet the needs of the Internal Revenue Service, provided 
     that procedures have been established to--
       (A) ensure continuity of records and case history; and
       (B) notify the taxpayer when appropriate.

     SEC. 2008. NOTIFICATION OF SUSPECTED IDENTITY THEFT.

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

     ``SEC. 7529. NOTIFICATION OF SUSPECTED IDENTITY THEFT.

       ``(a) In General.--If the Secretary determines that there 
     has been or may have been an unauthorized use of the identity 
     of any individual, the Secretary shall, without jeopardizing 
     an investigation relating to tax administration--
       ``(1) as soon as practicable, notify the individual of such 
     determination and provide--
       ``(A) instructions on how to file a report with law 
     enforcement regarding the unauthorized use of the identity of 
     the individual,
       ``(B) the identification of any forms necessary for the 
     individual to complete and submit to law enforcement to 
     permit access to personal information of the individual 
     during the investigation,
       ``(C) information regarding actions the individual may take 
     in order to protect the individual from harm relating to such 
     unauthorized use, and
       ``(D) an offer of identity protection measures to be 
     provided to the individual by the Internal Revenue Service, 
     such as the use of an identity protection personal 
     identification number, and
       ``(2) at the time the information described in paragraph 
     (1) is provided (or, if not available at such time, as soon 
     as practicable thereafter), issue additional notifications to 
     such individual (or such individual's designee) regarding--
       ``(A) whether an investigation has been initiated in 
     regards to such unauthorized use,
       ``(B) whether the investigation substantiated an 
     unauthorized use of the identity of the individual, and
       ``(C) whether--
       ``(i) any action has been taken against a person relating 
     to such unauthorized use, or
       ``(ii) any referral has been made for criminal prosecution 
     of such person and, to the extent such information is 
     available, whether such person has been criminally charged by 
     indictment or information.
       ``(b) Employment-Related Identity Theft.--
       ``(1) In general.--For purposes of this section, the 
     unauthorized use of the identity of an individual includes 
     the unauthorized use of the identity of the individual to 
     obtain employment.
       ``(2) Determination of employment-related identity theft.--
     For purposes of this section, in making a determination as to 
     whether there has been or may have been an unauthorized use 
     of the identity of an individual to obtain employment, the 
     Secretary shall review any information--
       ``(A) obtained from a statement described in section 6051 
     or an information return relating to compensation for 
     services rendered other than as an employee, or
       ``(B) provided to the Internal Revenue Service by the 
     Social Security Administration regarding any statement 
     described in section 6051,

     which indicates that the social security account number 
     provided on such statement or information return does not 
     correspond with the name provided on such statement or 
     information return or the name on the tax return reporting 
     the income which is included on such statement or information 
     return.''.
       (b) Additional Measures.--
       (1) Examination of both paper and electronic statements and 
     returns.--The Secretary of the Treasury (or the Secretary's 
     delegate) shall examine the statements, information returns, 
     and tax returns described in section 7529(b)(2) of the 
     Internal Revenue Code of 1986 (as added by subsection (a)) 
     for any evidence of employment-related identity theft, 
     regardless of whether such statements or returns are 
     submitted electronically or on paper.
       (2) Improvement of effective return processing program with 
     social security administration.--Section 232 of the Social 
     Security Act (42 U.S.C. 432) is amended by inserting after 
     the third sentence the following: ``For purposes of carrying 
     out the return processing program described in the

[[Page H10410]]

     preceding sentence, the Commissioner of Social Security shall 
     request, not less than annually, such information described 
     in section 7529(b)(2) of the Internal Revenue Code of 1986 as 
     may be necessary to ensure the accuracy of the records 
     maintained by the Commissioner of Social Security related to 
     the amounts of wages paid to, and the amounts of self-
     employment income derived by, individuals.''.
       (3) Underreporting of income.--The Secretary (or the 
     Secretary's delegate) shall establish procedures to ensure 
     that income reported in connection with the unauthorized use 
     of a taxpayer's identity is not taken into account in 
     determining any penalty for underreporting of income by the 
     victim of identity theft.
       (c) Clerical Amendment.--The table of sections for chapter 
     77 is amended by adding at the end the following new item:

``Sec. 7529. Notification of suspected identity theft.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to determinations made after the date that is 6 
     months after the date of the enactment of this Act.

     SEC. 2009. GUIDELINES FOR STOLEN IDENTITY REFUND FRAUD CASES.

       (a) In General.--Not later than 1 year after the date of 
     the enactment of this Act, the Secretary (or the Secretary's 
     delegate), in consultation with the National Taxpayer 
     Advocate, shall develop and implement publicly available 
     guidelines for management of cases involving stolen identity 
     refund fraud in a manner that reduces the administrative 
     burden on taxpayers who are victims of such fraud.
       (b) Standards and Procedures To Be Considered.--The 
     guidelines described in subsection (a) may include--
       (1) standards for--
       (A) the average length of time in which a case involving 
     stolen identity refund fraud should be resolved;
       (B) the maximum length of time, on average, a taxpayer who 
     is a victim of stolen identity refund fraud and is entitled 
     to a tax refund which has been stolen should have to wait to 
     receive such refund; and
       (C) the maximum number of offices and employees within the 
     Internal Revenue Service with whom a taxpayer who is a victim 
     of stolen identity refund fraud should be required to 
     interact in order to resolve a case;
       (2) standards for opening, assigning, reassigning, or 
     closing a case involving stolen identity refund fraud; and
       (3) procedures for implementing and accomplishing the 
     standards described in paragraphs (1) and (2), and measures 
     for evaluating such procedures and determining whether such 
     standards have been successfully implemented.

     SEC. 2010. INCREASED PENALTY FOR IMPROPER DISCLOSURE OR USE 
                   OF INFORMATION BY PREPARERS OF RETURNS.

       (a) In General.--Section 6713 is amended--
       (1) by redesignating subsections (b) and (c) as subsections 
     (c) and (d), respectively; and
       (2) by inserting after subsection (a) the following new 
     subsection:
       ``(b) Enhanced Penalty for Improper Use or Disclosure 
     Relating to Identity Theft.--
       ``(1) In general.--In the case of a disclosure or use 
     described in subsection (a) that is made in connection with a 
     crime relating to the misappropriation of another person's 
     taxpayer identity (as defined in section 6103(b)(6)), whether 
     or not such crime involves any tax filing, subsection (a) 
     shall be applied--
       ``(A) by substituting `$1,000' for `$250', and
       ``(B) by substituting `$50,000' for `$10,000'.
       ``(2) Separate application of total penalty limitation.--
     The limitation on the total amount of the penalty under 
     subsection (a) shall be applied separately with respect to 
     disclosures or uses to which this subsection applies and to 
     which it does not apply.''.
       (b) Criminal Penalty.--Section 7216(a) is amended by 
     striking ``$1,000'' and inserting ``$1,000 ($100,000 in the 
     case of a disclosure or use to which section 6713(b) 
     applies)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to disclosures or uses on or after the date of 
     the enactment of this Act.

           Subtitle B--Development of Information Technology

     SEC. 2101. MANAGEMENT OF INTERNAL REVENUE SERVICE INFORMATION 
                   TECHNOLOGY.

       (a) Duties and Responsibilities of Internal Revenue Service 
     Chief Information Officer.--Section 7803, as amended by 
     section 1001, is amended by adding at the end the following 
     new subsection:
       ``(f) Internal Revenue Service Chief Information Officer.--
       ``(1) In general.--There shall be in the Internal Revenue 
     Service an Internal Revenue Service Chief Information Officer 
     (hereafter referred to in this subsection as the `IRS CIO') 
     who shall be appointed by the Commissioner of the Internal 
     Revenue Service.
       ``(2) Centralized responsibility for internal revenue 
     service information technology.--The Commissioner of the 
     Internal Revenue Service (and the Secretary) shall act 
     through the IRS CIO with respect to all development, 
     implementation, and maintenance of information technology for 
     the Internal Revenue Service. Any reference in this 
     subsection to the IRS CIO which directs the IRS CIO to take 
     any action, or to assume any responsibility, shall be treated 
     as a reference to the Commissioner of the Internal Revenue 
     Service acting through the IRS CIO.
       ``(3) General duties and responsibilities.--The IRS CIO 
     shall--
       ``(A) be responsible for the development, implementation, 
     and maintenance of information technology for the Internal 
     Revenue Service,
       ``(B) ensure that the information technology of the 
     Internal Revenue Service is secure and integrated,
       ``(C) maintain operational control of all information 
     technology for the Internal Revenue Service,
       ``(D) be the principal advocate for the information 
     technology needs of the Internal Revenue Service, and
       ``(E) consult with the Chief Procurement Officer of the 
     Internal Revenue Service to ensure that the information 
     technology acquired for the Internal Revenue Service is 
     consistent with--
       ``(i) the goals and requirements specified in subparagraphs 
     (A) through (D), and
       ``(ii) the strategic plan developed under paragraph (4).
       ``(4) Strategic plan.--
       ``(A) In general.--The IRS CIO shall develop and implement 
     a multiyear strategic plan for the information technology 
     needs of the Internal Revenue Service. Such plan shall--
       ``(i) include performance measurements of such technology 
     and of the implementation of such plan,
       ``(ii) include a plan for an integrated enterprise 
     architecture of the information technology of the Internal 
     Revenue Service,
       ``(iii) include and take into account the resources needed 
     to accomplish such plan,
       ``(iv) take into account planned major acquisitions of 
     information technology by the Internal Revenue Service, 
     including Customer Account Data Engine 2 and the Enterprise 
     Case Management System, and
       ``(v) align with the needs and strategic plan of the 
     Internal Revenue Service.
       ``(B) Plan updates.--The IRS CIO shall, not less frequently 
     than annually, review and update the strategic plan under 
     subparagraph (A) (including the plan for an integrated 
     enterprise architecture described in subparagraph (A)(ii)) to 
     take into account the development of new information 
     technology and the needs of the Internal Revenue Service.
       ``(5) Scope of authority.--
       ``(A) Information technology.--For purposes of this 
     subsection, the term `information technology' has the meaning 
     given such term by section 11101 of title 40, United States 
     Code.
       ``(B) Internal revenue service.--Any reference in this 
     subsection to the Internal Revenue Service includes a 
     reference to all components of the Internal Revenue Service, 
     including--
       ``(i) the Office of the Taxpayer Advocate,
       ``(ii) the Criminal Investigation Division of the Internal 
     Revenue Service, and
       ``(iii) except as otherwise provided by the Secretary with 
     respect to information technology related to matters 
     described in subsection (b)(3)(B), the Office of the Chief 
     Counsel.''.
       (b) Independent Verification and Validation of the Customer 
     Account Data Engine 2 and Enterprise Case Management 
     System.--
       (1) In general.--The Commissioner of the Internal Revenue 
     Service shall enter into a contract with an independent 
     reviewer to verify and validate the implementation plans 
     (including the performance milestones and cost estimates 
     included in such plans) developed for the Customer Account 
     Data Engine 2 and the Enterprise Case Management System.
       (2) Deadline for completion.--Such contract shall require 
     that such verification and validation be completed not later 
     than the date which is 1 year after the date of the enactment 
     of this Act.
       (3) Application to phases of cade 2.--
       (A) In general.--Paragraphs (1) and (2) shall not apply to 
     phase 1 of the Customer Account Data Engine 2 and shall apply 
     separately to each other phase.
       (B) Deadline for completing plans.--Not later than 1 year 
     after the date of the enactment of this Act, the Commissioner 
     of the Internal Revenue Service shall complete the 
     development of plans for all phases of the Customer Account 
     Data Engine 2.
       (C) Deadline for completion of verification and validation 
     of plans.--In the case of any phase after phase 2 of the 
     Customer Account Data Engine 2, paragraph (2) shall be 
     applied by substituting ``the date on which the plan for such 
     phase was completed'' for ``the date of the enactment of this 
     Act''.
       (c) Coordination of IRS CIO and Chief Procurement Officer 
     of the Internal Revenue Service.--
       (1) In general.--The Chief Procurement Officer of the 
     Internal Revenue Service shall--
       (A) identify all significant IRS information technology 
     acquisitions and provide written notification to the Internal 
     Revenue Service Chief Information Officer (hereafter referred 
     to in this subsection as the ``IRS CIO'') of each such 
     acquisition in advance of such acquisition, and
       (B) regularly consult with the IRS CIO regarding 
     acquisitions of information technology for the Internal 
     Revenue Service, including meeting with the IRS CIO regarding 
     such acquisitions upon request.

[[Page H10411]]

       (2) Significant irs information technology acquisitions.--
     For purposes of this subsection, the term ``significant IRS 
     information technology acquisitions'' means--
       (A) any acquisition of information technology for the 
     Internal Revenue Service in excess of $1,000,000; and
       (B) such other acquisitions of information technology for 
     the Internal Revenue Service (or categories of such 
     acquisitions) as the IRS CIO, in consultation with the Chief 
     Procurement Officer of the Internal Revenue Service, may 
     identify.
       (3) Scope.--Terms used in this subsection which are also 
     used in section 7803(f) of the Internal Revenue Code of 1986 
     (as amended by subsection (a)) shall have the same meaning as 
     when used in such section.

     SEC. 2102. INTERNET PLATFORM FOR FORM 1099 FILINGS.

       (a) In General.--Not later than January 1, 2023, the 
     Secretary of the Treasury or the Secretary's delegate 
     (hereafter referred to in this section as the ``Secretary'') 
     shall make available an Internet website or other electronic 
     media, with a user interface and functionality similar to the 
     Business Services Online Suite of Services provided by the 
     Social Security Administration, that will provide access to 
     resources and guidance provided by the Internal Revenue 
     Service and will allow persons to--
       (1) prepare and file Forms 1099;
       (2) prepare Forms 1099 for distribution to recipients other 
     than the Internal Revenue Service; and
       (3) maintain a record of completed and submitted Forms 
     1099.
       (b) Electronic Services Treated as Supplemental; 
     Application of Security Standards.--The Secretary shall 
     ensure that the services described in subsection (a)--
       (1) are a supplement to, and not a replacement for, other 
     services provided by the Internal Revenue Service to 
     taxpayers; and
       (2) comply with applicable security standards and 
     guidelines.

     SEC. 2103. STREAMLINED CRITICAL PAY AUTHORITY FOR INFORMATION 
                   TECHNOLOGY POSITIONS.

       (a) In General.--Subchapter A of chapter 80 is amended by 
     adding at the end the following new section:

     ``SEC. 7812. STREAMLINED CRITICAL PAY AUTHORITY FOR 
                   INFORMATION TECHNOLOGY POSITIONS.

       ``In the case of any position which is critical to the 
     functionality of the information technology operations of the 
     Internal Revenue Service--
       ``(1) section 9503 of title 5, United States Code, shall be 
     applied--
       ``(A) by substituting `during the period beginning on the 
     date of the enactment of section 7812 of the Internal Revenue 
     Code of 1986, and ending on September 30, 2023' for `Before 
     September 30, 2013 in subsection (a)',
       ``(B) without regard to subparagraph (B) of subsection 
     (a)(1), and
       ``(C) by substituting `the date of the enactment of the 
     Taxpayer First Act of 2018' for `June 1, 1998' in subsection 
     (a)(6),
       ``(2) section 9504 of such title 5 shall be applied by 
     substituting `During the period beginning on the date of the 
     enactment of section 7812 of the Internal Revenue Code of 
     1986, and ending on September 30, 2023' for `Before September 
     30, 2013' each place it appears in subsections (a) and (b), 
     and
       ``(3) section 9505 of such title shall be applied--
       ``(A) by substituting `During the period beginning on the 
     date of the enactment of section 7812 of the Internal Revenue 
     Code of 1986, and ending on September 30, 2023' for `Before 
     September 30, 2013' in subsection (a), and
       ``(B) by substituting `the information technology 
     operations' for `significant functions' in subsection (a).''.
       (b) Clerical Amendment.--The table of sections for 
     subchapter A of chapter 80 is amended by adding at the end 
     the following new item:

``Sec. 7812. Streamlined critical pay authority for information 
              technology positions.''.

 Subtitle C--Modernization of Consent-Based Income Verification System

     SEC. 2201. DISCLOSURE OF TAXPAYER INFORMATION FOR THIRD-PARTY 
                   INCOME VERIFICATION.

       (a) In General.--Not later than 1 year after the close of 
     the 2-year period described in subsection (d)(1), the 
     Secretary of the Treasury or the Secretary's delegate 
     (hereafter referred to in this section as the ``Secretary'') 
     shall implement a program to ensure that any qualified 
     disclosure--
       (1) is fully automated and accomplished through the 
     Internet; and
       (2) is accomplished in as close to real-time as is 
     practicable.
       (b) Qualified Disclosure.--For purposes of this section, 
     the term ``qualified disclosure'' means a disclosure under 
     section 6103(c) of the Internal Revenue Code of 1986 of 
     returns or return information by the Secretary to a person 
     seeking to verify the income or creditworthiness of a 
     taxpayer who is a borrower in the process of a loan 
     application.
       (c) Application of Security Standards.--The Secretary shall 
     ensure that the program described in subsection (a) complies 
     with applicable security standards and guidelines.
       (d) User Fee.--
       (1) In general.--During the 2-year period beginning on the 
     first day of the 6th calendar month beginning after the date 
     of the enactment of this Act, the Secretary shall assess and 
     collect a fee for qualified disclosures (in addition to any 
     other fee assessed and collected for such disclosures) at 
     such rates as the Secretary determines are sufficient to 
     cover the costs related to implementing the program described 
     in subsection (a), including the costs of any necessary 
     infrastructure or technology.
       (2) Deposit of collections.--Amounts received from fees 
     assessed and collected under paragraph (1) shall be deposited 
     in, and credited to, an account solely for the purpose of 
     carrying out the activities described in subsection (a). Such 
     amounts shall be available to carry out such activities 
     without need of further appropriation and without fiscal year 
     limitation.

     SEC. 2202. LIMIT REDISCLOSURES AND USES OF CONSENT-BASED 
                   DISCLOSURES OF TAX RETURN INFORMATION.

       (a) In General.--Section 6103(c) is amended by adding at 
     the end the following: ``Persons designated by the taxpayer 
     under this subsection to receive return information shall not 
     use the information for any purpose other than the express 
     purpose for which consent was granted and shall not disclose 
     return information to any other person without the express 
     permission of, or request by, the taxpayer.''.
       (b) Application of Penalties.--Section 6103(a)(3) is 
     amended by inserting ``subsection (c),'' after ``return 
     information under''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to disclosures made after the date of the 
     enactment of this Act.

             Subtitle D--Expanded Use of Electronic Systems

     SEC. 2301. ELECTRONIC FILING OF RETURNS.

       (a) In General.--Section 6011(e)(2)(A) is amended by 
     striking ``250'' and inserting ``the applicable number of''.
       (b) Applicable Number.--Section 6011(e) is amended by 
     striking paragraph (5) and inserting the following new 
     paragraphs:
       ``(5) Applicable number.--
       ``(A) In general.--For purposes of paragraph (2)(A), the 
     applicable number shall be--
       ``(i) except as provided in subparagraph (B), in the case 
     of calendar years before 2020, 250,
       ``(ii) in the case of calendar year 2020, 100, and
       ``(iii) in the case of calendar years after 2020, 10.
       ``(B) Special rule for partnerships for 2018 and 2019.--In 
     the case of a partnership, for any calendar year before 2020, 
     the applicable number shall be--
       ``(i) in the case of calendar year 2018, 200, and
       ``(ii) in the case of calendar year 2019, 150.
       ``(6) Partnerships required to file on magnetic media.--
     Notwithstanding paragraph (2)(A), the Secretary shall require 
     partnerships having more than 100 partners to file returns on 
     magnetic media.''.
       (c) Returns Filed by a Tax Return Preparer.--Section 
     6011(e)(3) is amended by adding at the end the following new 
     subparagraph:
       ``(D) Exception for certain preparers located in areas 
     without internet access.--The Secretary may waive the 
     requirement of subparagraph (A) if the Secretary determines, 
     on the basis of an application by the tax return preparer, 
     that the preparer cannot meet such requirement by reason of 
     being located in a geographic area which does not have access 
     to internet service (other than dial-up or satellite 
     service).''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 2302. UNIFORM STANDARDS FOR THE USE OF ELECTRONIC 
                   SIGNATURES FOR DISCLOSURE AUTHORIZATIONS TO, 
                   AND OTHER AUTHORIZATIONS OF, PRACTITIONERS.

       Section 6061(b)(3) is amended to read as follows:
       ``(3) Published guidance.--
       ``(A) In general.--The Secretary shall publish guidance as 
     appropriate to define and implement any waiver of the 
     signature requirements or any method adopted under paragraph 
     (1).
       ``(B) Electronic signatures for disclosure authorizations 
     to, and other authorizations of, practitioners.--Not later 
     than 6 months after the date of the enactment of this 
     subparagraph, the Secretary shall publish guidance to 
     establish uniform standards and procedures for the acceptance 
     of taxpayers' signatures appearing in electronic form with 
     respect to any request for disclosure of a taxpayer's return 
     or return information under section 6103(c) to a practitioner 
     or any power of attorney granted by a taxpayer to a 
     practitioner.
       ``(C) Practitioner.--For purposes of subparagraph (B), the 
     term `practitioner' means any individual in good standing who 
     is regulated under section 330 of title 31, United States 
     Code.''.

     SEC. 2303. PAYMENT OF TAXES BY DEBIT AND CREDIT CARDS.

       Section 6311(d)(2) is amended by adding at the end the 
     following: ``The preceding sentence shall not apply to the 
     extent that the Secretary ensures that any such fee or other 
     consideration is fully recouped by the Secretary in the form 
     of fees paid to the Secretary by persons paying taxes imposed 
     under subtitle A with credit, debit, or charge cards pursuant 
     to such contract. Notwithstanding the preceding sentence, the 
     Secretary shall seek to minimize the amount of any fee or 
     other consideration that the Secretary pays under any such 
     contract.''.

[[Page H10412]]

  


     SEC. 2304. REQUIREMENT THAT ELECTRONICALLY PREPARED PAPER 
                   RETURNS INCLUDE SCANNABLE CODE.

       (a) In General.--Subsection (e) of section 6011, as amended 
     by this Act, is amended by adding at the end the following 
     new paragraph:
       ``(7) Special rule for returns prepared electronically and 
     submitted on paper.--The Secretary shall require that any 
     return of tax which is prepared electronically, but is 
     printed and filed on paper, bear a code which can, when 
     scanned, convert such return to electronic format.''.
       (b) Conforming Amendment.--Paragraph (1) of section 6011(e) 
     is amended by striking ``paragraph (3)'' and inserting 
     ``paragraphs (3) and (7)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to returns of tax the due date for which 
     (determined without regard to extensions) is after December 
     31, 2020.

     SEC. 2305. AUTHENTICATION OF USERS OF ELECTRONIC SERVICES 
                   ACCOUNTS.

       Beginning 180 days after the date of the enactment of this 
     Act, the Secretary of the Treasury (or the Secretary's 
     delegate) shall verify the identity of any individual opening 
     an e-Services account with the Internal Revenue Service 
     before such individual is able to use the e-Services tools.

                      Subtitle E--Other Provisions

     SEC. 2401. REPEAL OF PROVISION REGARDING CERTAIN TAX 
                   COMPLIANCE PROCEDURES AND REPORTS.

       Section 2004 of the Internal Revenue Service Restructuring 
     and Reform Act of 1998 (26 U.S.C. 6012 note) is repealed.

     SEC. 2402. COMPREHENSIVE TRAINING STRATEGY.

       Not later than 1 year after the date of the enactment of 
     this Act, the Commissioner of Internal Revenue shall submit 
     to Congress a written report providing a comprehensive 
     training strategy for employees of the Internal Revenue 
     Service, including--
       (1) a plan to streamline current training processes, 
     including an assessment of the utility of further 
     consolidating internal training programs, technology, and 
     funding;
       (2) a plan to develop annual training regarding taxpayer 
     rights, including the role of the Office of the Taxpayer 
     Advocate, for employees that interface with taxpayers and 
     their managers;
       (3) a plan to improve technology-based training;
       (4) proposals to--
       (A) focus employee training on early, fair, and efficient 
     resolution of taxpayer disputes for employees that interface 
     with taxpayers and their managers; and
       (B) ensure consistency of skill development and employee 
     evaluation throughout the Internal Revenue Service; and
       (5) a thorough assessment of the funding necessary to 
     implement such strategy.

                  TITLE III--MISCELLANEOUS PROVISIONS

Subtitle A--Reform of Laws Governing Internal Revenue Service Employees

     SEC. 3001. ELECTRONIC RECORD RETENTION.

       (a) Retention of Records.--
       (1) In general.--Email records of the Internal Revenue 
     Service shall be retained in an appropriate electronic system 
     that supports records management and litigation requirements, 
     including the capability to identify, retrieve, and retain 
     the records, in accordance with the requirements described in 
     paragraph (2).
       (2) Requirements.--
       (A) Prior to certification.--The Commissioner of Internal 
     Revenue and the Chief Counsel for the Internal Revenue 
     Service shall retain all email records generated on or after 
     the date of the enactment of this Act and before the date on 
     which the Treasury Inspector General for Tax Administration 
     makes the certification under subsection (c)(1).
       (B) Principal officers and specified employees.--Not later 
     than December 31, 2019, the Commissioner of Internal Revenue 
     and the Chief Counsel for the Internal Revenue Service shall 
     maintain email records of all principal officers and 
     specified employees of the Internal Revenue Service for a 
     period of not less than 15 years beginning on the date such 
     record was generated.
       (b) Transmission of Records to the National Archives.--Not 
     later than 15 years after the date on which an email record 
     of a principal officer or specified employee of the Internal 
     Revenue Service is generated, the Commissioner of Internal 
     Revenue and the Chief Counsel for the Internal Revenue 
     Service shall transfer such email record to the Archivist of 
     the United States.
       (c) Compliance.--
       (1) Certification.--On the date that the Treasury Inspector 
     General for Tax Administration determines that the Internal 
     Revenue Service has a program in place that complies with the 
     requirements of subsections (a)(2)(B) and (b), the Treasury 
     Inspector General for Tax Administration shall certify to the 
     Committee on Ways and Means of the House of Representatives 
     and the Committee on Finance of the Senate that the Internal 
     Revenue Service is in compliance with such requirements.
       (2) Reports.--
       (A) Interim report.--Not later than December 31, 2019, the 
     Treasury Inspector General for Tax Administration shall 
     submit a report to the Committee on Ways and Means of the 
     House of Representatives and the Committee on Finance of the 
     Senate on the steps being taken by the Commissioner of 
     Internal Revenue and the Chief Counsel for the Internal 
     Revenue Service to comply with the requirements of 
     subsections (a)(2)(B) and (b).
       (B) Final report.--Not later than April 1, 2020, the 
     Treasury Inspector General for Tax Administration shall 
     submit a report to the Committee on Ways and Means of the 
     House of Representatives and the Committee on Finance of the 
     Senate describing whether the Internal Revenue Service is in 
     compliance with the requirements of subsections (a)(2)(B) and 
     (b).
       (d) Definitions.--For purposes of this section--
       (1) Principal officer.--The term ``principal officer'' 
     means, with respect to the Internal Revenue Service--
       (A) any employee whose position is listed under the 
     Internal Revenue Service in the most recent version of the 
     United States Government Manual published by the Office of 
     the Federal Register;
       (B) any employee who is a senior staff member reporting 
     directly to the Commissioner of Internal Revenue or the Chief 
     Counsel for the Internal Revenue Service; and
       (C) any associate counsel, deputy counsel, or division head 
     in the Office of the Chief Counsel for the Internal Revenue 
     Service.
       (2) Specified employee.--The term ``specified employee'' 
     means, with respect to the Internal Revenue Service, any 
     employee who--
       (A) holds a Senior Executive Service position (as defined 
     in section 3132 of title 5, United States Code) in the 
     Internal Revenue Service or the Office of Chief Counsel for 
     the Internal Revenue Service; and
       (B) is not a principal officer of the Internal Revenue 
     Service.

     SEC. 3002. PROHIBITION ON REHIRING ANY EMPLOYEE OF THE 
                   INTERNAL REVENUE SERVICE WHO WAS INVOLUNTARILY 
                   SEPARATED FROM SERVICE FOR MISCONDUCT.

       (a) In General.--Section 7804 is amended by adding at the 
     end the following new subsection:
       ``(d) Prohibition on Rehiring Employees Involuntarily 
     Separated.--The Commissioner may not hire any individual 
     previously employed by the Commissioner who was removed for 
     misconduct under this subchapter or chapter 43 or chapter 75 
     of title 5, United States Code, or whose employment was 
     terminated under section 1203 of the Internal Revenue Service 
     Restructuring and Reform Act of 1998 (26 U.S.C. 7804 
     note).''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply with respect to the hiring of employees after the 
     date of the enactment of this Act.

     SEC. 3003. NOTIFICATION OF UNAUTHORIZED INSPECTION OR 
                   DISCLOSURE OF RETURNS AND RETURN INFORMATION.

       (a) In General.--Subsection (e) of section 7431 is amended 
     by adding at the end the following new sentences: ``The 
     Secretary shall also notify such taxpayer if the Internal 
     Revenue Service or a Federal or State agency (upon notice to 
     the Secretary by such Federal or State agency) proposes an 
     administrative determination as to disciplinary or adverse 
     action against an employee arising from the employee's 
     unauthorized inspection or disclosure of the taxpayer's 
     return or return information. The notice described in this 
     subsection shall include the date of the unauthorized 
     inspection or disclosure and the rights of the taxpayer under 
     such administrative determination.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to determinations proposed after the date which 
     is 180 days after the date of the enactment of this Act.

        Subtitle B--Provisions Relating to Exempt Organizations

     SEC. 3101. MANDATORY E-FILING BY EXEMPT ORGANIZATIONS.

       (a) In General.--Section 6033 is amended by redesignating 
     subsection (n) as subsection (o) and by inserting after 
     subsection (m) the following new subsection:
       ``(n) Mandatory Electronic Filing.--Any organization 
     required to file a return under this section shall file such 
     return in electronic form.''.
       (b) Conforming Amendment.--Paragraph (7) of section 527(j) 
     is amended by striking ``if the organization has'' and all 
     that follows through ``such calendar year''.
       (c) Inspection of Electronically Filed Annual Returns.--
     Subsection (b) of section 6104 is amended by adding at the 
     end the following: ``Any annual return required to be filed 
     electronically under section 6033(n) shall be made available 
     by the Secretary to the public as soon as practicable in a 
     machine readable format.''.
       (d) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to taxable years 
     beginning after the date of the enactment of this Act.
       (2) Transitional relief.--
       (A) Small organizations.--
       (i) In general.--In the case of any small organizations, or 
     any other organizations for which the Secretary of the 
     Treasury or the Secretary's delegate (hereafter referred to 
     in this paragraph as the ``Secretary'') determines the 
     application of the amendments made by this section would 
     cause undue burden without a delay, the Secretary may delay 
     the application of such amendments, but such delay shall not 
     apply to any taxable

[[Page H10413]]

     year beginning on or after the date 2 years after of the 
     enactment of this Act.
       (ii) Small organization.--For purposes of clause (i), the 
     term ``small organization'' means any organization--

       (I) the gross receipts of which for the taxable year are 
     less than $200,000; and
       (II) the aggregate gross assets of which at the end of the 
     taxable year are less than $500,000.

       (B) Organizations filing form 990-T.--In the case of any 
     organization described in section 511(a)(2) of the Internal 
     Revenue Code of 1986 which is subject to the tax imposed by 
     section 511(a)(1) of such Code on its unrelated business 
     taxable income, or any organization required to file a return 
     under section 6033 of such Code and include information under 
     subsection (e) thereof, the Secretary may delay the 
     application of the amendments made by this section, but such 
     delay shall not apply to any taxable year beginning on or 
     after the date 2 years after of the enactment of this Act.

     SEC. 3102. NOTICE REQUIRED BEFORE REVOCATION OF TAX EXEMPT 
                   STATUS FOR FAILURE TO FILE RETURN.

       (a) In General.--Section 6033(j)(1) is amended by striking 
     ``If an organization'' and inserting the following:
       ``(A) Notice.--
       ``(i) In general.--After an organization described in 
     subsection (a)(1) or (i) fails to file the annual return or 
     notice required under either subsection for 2 consecutive 
     years, the Secretary shall notify the organization--

       ``(I) that the Internal Revenue Service has no record of 
     such a return or notice from such organization for 2 
     consecutive years, and
       ``(II) about the revocation that will occur under 
     subparagraph (B) if the organization fails to file such a 
     return or notice by the due date for the next such return or 
     notice required to be filed.

     The notification under the preceding sentence shall include 
     information about how to comply with the filing requirements 
     under subsection (a)(1) and (i).
       ``(B) Revocation.--If an organization''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to failures to file returns or notices for 2 
     consecutive years if the return or notice for the second year 
     is required to be filed after December 31, 2018.

                         Subtitle C--Tax Court

     SEC. 3301. 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. 3302. OPINIONS AND JUDGMENTS.

       (a) In General.--Section 7459 is amended by striking all 
     that 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) References.--Section 7459 is amended by redesignating 
     subsection (g) as subsection (h) and by inserting after 
     subsection (f) the following new subsection:
       ``(g) References.--Any reference in this title to a 
     decision or report of the Tax Court shall be treated as a 
     reference to a judgment or opinion of the Tax Court, 
     respectively.''.
       (c) Conforming Amendment.--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.''.
       (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. 3303. 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''.
       (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. 3304. REPEAL OF DEADWOOD RELATED TO BOARD OF TAX 
                   APPEALS.

       (a) Section 7459, as amended by this Act, is amended by 
     striking subsection (f) and by redesignating subsections (g) 
     and (h) as subsections (f) and (g), respectively.
       (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. Pursuant to the rule, the gentleman from 
South Carolina (Mr. Rice) and the gentleman from Georgia (Mr. Lewis) 
each will control 20 minutes.
  The Chair recognizes the gentleman from South Carolina.


                             General Leave

  Mr. RICE of South Carolina. Mr. Speaker, I ask unanimous consent that 
all Members may have 5 legislative days in which to revise and extend 
their remarks and include extraneous material on H.R. 7227, currently 
under consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from South Carolina?
  There was no objection.
  Mr. RICE of South Carolina. Mr. Speaker, I yield myself such time as 
I may consume.
  Mr. Speaker, this is a bipartisan, commonsense measure that I am 
proud to have worked on alongside Mr. Lewis and many members of the 
Ways and Means Committee for the past 2 years.
  Mr. Speaker, I urge all Members to support this legislation, and I 
yield back the balance of my time.
  Mr. LEWIS of Georgia. Mr. Speaker, I yield myself such time as I may 
consume.

[[Page H10414]]

  Mr. Speaker, I rise in strong support of H.R. 7227. I am proud of the 
product and of the process.
  I thank the gentleman from South Carolina for all of his help and all 
of his great work.
  Let me also thank Chairman Brady for his tireless work and commitment 
to this bill. From start to finish, he worked with us to advance good, 
responsible policy. This afternoon, I again thank him, the gentlewoman 
from Kansas (Ms. Jenkins), and the gentleman from Florida (Mr. 
Buchanan) for serving as partners in leading this effort.
  I also thank our staff again for their good and great work. They 
refused to give up; they refused to give in. They worked together on 
behalf of the American taxpayers and of the American people, and they 
did a great and superb job.
  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 share their concerns and ideas. We 
reached out to taxpayers and advocates. We negotiated. We took our 
time, and, Mr. Speaker, I believe that we did it and we did it right.
  Together, we developed a bill that improves the independent appeals 
process and taxpayer services. We worked together to ensure that 
taxpayers--especially those who are low-income, disabled, and senior 
citizens--receive fair, quality, and timely help and support.
  For these reasons, I am especially proud of our work to prevent 
private debt collectors from excessively targeting low-income 
taxpayers. As a result, our bill will ease the burden on those who are 
already struggling to keep a roof over their head and food on the 
table.
  From the beginning, we committed to bipartisanship, and we refused to 
abandon our course.
  I believe that this experience took our subcommittee and our 
institution back to our roots. Mr. Speaker, at every crossroad, we 
remembered the lessons from the past and chose to put the taxpayer 
first.
  The process was transparent and inclusive, and the product is strong 
and timely.
  For these reasons, Mr. Speaker, I urge all of my colleagues to 
support the bill, and I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from South Carolina (Mr. Rice) that the House suspend the 
rules and pass the bill, H.R. 7227, as amended.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Mr. MASSIE. 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 motion will be postponed.

                          ____________________