[Congressional Record Volume 164, Number 201 (Thursday, December 20, 2018)]
[House]
[Pages H10445-H10477]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




    SHILOH NATIONAL MILITARY PARK BOUNDARY ADJUSTMENT AND PARKER'S 
                   CROSSROADS BATTLEFIELD DESIGNATION

  Mr. BRADY of Texas. Mr. Speaker, pursuant to House Resolution 1181, I 
call up the bill (H.R. 88) to modify the boundary of the Shiloh 
National Military Park located in Tennessee and Mississippi, to 
establish Parker's Crossroads Battlefield as an affiliated area of the 
National Park System, and for other purposes, with the Senate amendment 
thereto, and ask for its immediate consideration.
  The Clerk read the title of the bill.
  The SPEAKER pro tempore (Mr. Mitchell). The Clerk will designate the 
Senate amendment.
  Senate amendment:

       Strike out all after the enacting clause and insert:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Shiloh National Military 
     Park Boundary Adjustment and Parker's Crossroads Battlefield 
     Designation Act''.

     SEC. 2. DEFINITIONS.

       In this Act:
       (1) Affiliated area.--The term ``affiliated area'' means 
     the Parker's Crossroads Battlefield established as an 
     affiliated area of the National Park System by section 4(a).
       (2) Park.--The term ``Park'' means Shiloh National Military 
     Park, a unit of the National Park System.
       (3) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.

     SEC. 3. AREAS TO BE ADDED TO SHILOH NATIONAL MILITARY PARK.

       (a) Additional Areas.--The boundary of the Park is modified 
     to include the areas that are generally depicted on the map 
     entitled ``Shiloh National Military Park, Proposed Boundary 
     Adjustment'', numbered 304/80,011, and dated July 2014, and 
     which are comprised of the following:
       (1) Fallen Timbers Battlefield.
       (2) Russell House Battlefield.
       (3) Davis Bridge Battlefield.
       (b) Acquisition Authority.--The Secretary may acquire the 
     land described in subsection (a) by donation or exchange.
       (c) Administration.--Any land acquired under this section 
     shall be administered as part of the Park.

     SEC. 4. ESTABLISHMENT OF AFFILIATED AREA.

       (a) In General.--Parker's Crossroads Battlefield in the 
     State of Tennessee is established as an affiliated area of 
     the National Park System.
       (b) Description of Affiliated Area.--The affiliated area 
     shall consist of the area generally depicted within the 
     ``Proposed Boundary'' on the map entitled ``Parker's 
     Crossroads Battlefield, Proposed Boundary'', numbered 903/
     80,073, and dated July 2014.
       (c) Administration.--The affiliated area shall be managed 
     in accordance with--
       (1) this Act; and
       (2) any law generally applicable to units of the National 
     Park System.
       (d) Management Entity.--The City of Parkers Crossroads and 
     the Tennessee Historical Commission shall jointly be the 
     management entity for the affiliated area.
       (e) Cooperative Agreements.--The Secretary may provide 
     technical assistance and enter into cooperative agreements 
     with the management entity for the purpose of providing 
     financial assistance for the marketing, marking, 
     interpretation, and preservation of the affiliated area.
       (f) Limited Role of the Secretary.--Nothing in this Act 
     authorizes the Secretary to acquire property at the 
     affiliated area or to assume overall financial responsibility 
     for the operation, maintenance, or management of the 
     affiliated area.
       (g) General Management Plan.--
       (1) In general.--The Secretary, in consultation with the 
     management entity, shall develop a general management plan 
     for the affiliated area in accordance with section 100502 of 
     title 54, United States Code.
       (2) Transmittal.--Not later than 3 years after the date on 
     which funds are made available to carry out this Act, the 
     Secretary shall submit to the Committee on Natural Resources 
     of the House of Representatives and the Committee on Energy 
     and Natural Resources of the Senate the general management 
     plan developed under paragraph (1).


                            Motion to Concur

  Mr. BRADY of Texas. Mr. Speaker, I have a motion at the desk.
  The SPEAKER pro tempore. The Clerk will designate the motion.
  The text of the motion is as follows:
       Mr. Brady of Texas moves that the House concur in the 
     Senate amendment to H.R. 88 with an amendment consisting of 
     the text of Rules Committee Print 115-87.
  The SPEAKER pro tempore. Pursuant to House Resolution 1180, the 
amendment consisting of the text of Rules Committee Print 115-87 shall 
be considered as read.
  The text of the House amendment to the Senate amendment to the text 
is as follows:
       In lieu of the matter proposed to be inserted by the 
     Senate, insert the following:

   DIVISION A--RETIREMENT, SAVINGS, AND OTHER TAX RELIEF ACT OF 2018

     SECTION 1. SHORT TITLE, ETC.

       (a) Short Title.--This division may be cited as the 
     Retirement, Savings, and Other Tax Relief Act of 2018.
       (b) Amendment of 1986 Code.--Except as otherwise expressly 
     provided, whenever in this division 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 
     division is as follows:

Sec. 1. Short title, etc.

                      TITLE I--DISASTER TAX RELIEF

Sec. 101. Definitions.
Sec. 102. Special disaster-related rules for use of retirement funds.
Sec. 103. Employee retention credit for employers affected by qualified 
              disasters.
Sec. 104. Other disaster-related tax relief provisions.
Sec. 105. Treatment of certain possessions.
Sec. 106. Automatic extension of filing deadline.

                    TITLE II--RETIREMENT AND SAVINGS

        Subtitle A--Expanding and Preserving Retirement Savings

Sec. 201. Multiple employer plans; pooled employer plans.
Sec. 202. Rules relating to election of safe harbor 401(k) status.
Sec. 203. Certain taxable non-tuition fellowship and stipend payments 
              treated as compensation for IRA purposes.
Sec. 204. Repeal of maximum age for traditional IRA contributions.
Sec. 205. Qualified employer plans prohibited from making loans through 
              credit cards and other similar arrangements.
Sec. 206. Portability of lifetime income investments.
Sec. 207. Treatment of custodial accounts on termination of section 
              403(b) plans.
Sec. 208. Clarification of retirement income account rules relating to 
              church-controlled organizations.
Sec. 209. Increase in 10 percent cap for automatic enrollment safe 
              harbor after 1st plan year.
Sec. 210. Increase in credit limitation for small employer pension plan 
              startup costs.
Sec. 211. Small employer automatic enrollment credit.
Sec. 212. Exemption from required minimum distribution rules for 
              individuals with certain account balances.
Sec. 213. Elective deferrals by members of the Ready Reserve of a 
              reserve component of the Armed Forces.

                Subtitle B--Administrative Improvements

Sec. 221. Plan adopted by filing due date for year may be treated as in 
              effect as of close of year.
Sec. 222. Modification of nondiscrimination rules to protect older, 
              longer service participants.
Sec. 223. Fiduciary safe harbor for selection of lifetime income 
              provider.
Sec. 224. Disclosure regarding lifetime income.
Sec. 225. Modification of PBGC premiums for CSEC plans.

                  Subtitle C--Other Savings Provisions

Sec. 231. Expansion of section 529 plans.
Sec. 232. Penalty-free withdrawals from retirement plans for 
              individuals in case of birth of child or adoption.

       TITLE III--REPEAL OR DELAY OF CERTAIN HEALTH-RELATED TAXES

Sec. 301. Extension of moratorium on medical device excise tax.
Sec. 302. Delay in implementation of excise tax on high cost employer-
              sponsored health coverage.
Sec. 303. Extension of suspension of annual fee on health insurance 
              providers.
Sec. 304. Repeal of excise tax on indoor tanning services.

                 TITLE IV--CERTAIN EXPIRING PROVISIONS

Sec. 401. Railroad track maintenance credit made permanent.
Sec. 402. Biodiesel and renewable diesel provisions extended and phased 
              out.

                       TITLE V--OTHER PROVISIONS

Sec. 501. Technical amendments relating to Public Law 115-97.
Sec. 502. Clarification of treatment of veterans as specified group for 
              purposes of the low-income housing tax credit.
Sec. 503. Clarification of general public use requirement for qualified 
              residential rental projects.
Sec. 504. Floor plan financing applicable to certain trailers and 
              campers.
Sec. 505. Repeal of increase in unrelated business taxable income by 
              disallowed fringe.
Sec. 506. Certain purchases of employee-owned stock disregarded for 
              purposes of foundation tax on excess business holdings.
Sec. 507. Allowing 501(c)(3) organization to make statements relating 
              to political campaign in ordinary course of carrying out 
              its tax exempt purpose.
Sec. 508. Charitable organizations permitted to make collegiate housing 
              and infrastructure grants.
Sec. 509. Restriction on regulation of contingency fees with respect to 
              tax returns, etc.

                      TITLE I--DISASTER TAX RELIEF

     SEC. 101. DEFINITIONS.

       For purposes of this title--

[[Page H10446]]

       (1) General definitions.--
       (A) Qualified disaster area.--The term ``qualified disaster 
     area'' means the Hurricane Florence disaster area; the 
     Hurricane Michael disaster area; the Typhoon Mangkhut 
     disaster area; the Typhoon Yutu disaster area; the Mendocino 
     wildfire disaster area; the Camp and Woolsey wildfire 
     disaster area; the Kilauea volcanic eruption and earthquakes 
     disaster area; the Hawaii severe storms, flooding, 
     landslides, and mudslides disaster area; the Wisconsin severe 
     storms, tornadoes, straight-line winds, flooding, and 
     landslides disaster area; the Texas severe storms and 
     flooding disaster area; the North Carolina tornado and severe 
     storms disaster area; the Indiana severe storms and flooding 
     disaster area; the Alabama severe storms and tornadoes 
     disaster area; and the Tropical Storm Gita disaster area.
       (B) Qualified disaster zone.--The term ``qualified disaster 
     zone'' means that portion of any qualified disaster area 
     which is determined by the President to warrant individual or 
     individual and public assistance from the Federal Government 
     under the Robert T. Stafford Disaster Relief and Emergency 
     Assistance Act by reason of the qualified disaster with 
     respect to such disaster area.
       (C) Qualified disaster.--The term ``qualified disaster'' 
     means, with respect to any qualified disaster area, the 
     disaster by reason of which a major disaster was declared 
     with respect to such area.
       (2) Hurricane florence.--
       (A) Hurricane florence disaster area.--The term ``Hurricane 
     Florence disaster area'' means an area with respect to which 
     a major disaster has been declared by the President on or 
     before December 17, 2018, under section 401 of the Robert T. 
     Stafford Disaster Relief and Emergency Assistance Act by 
     reason of Hurricane Florence.
       (B) Incident beginning date.--The incident beginning date 
     of Hurricane Florence is September 7, 2018.
       (C) Incident period.--The incident period of Hurricane 
     Florence is the period beginning on the incident beginning 
     date of Hurricane Florence and ending on October 8, 2018.
       (3) Hurricane michael.--
       (A) Hurricane michael disaster area.--The term ``Hurricane 
     Michael disaster area'' means an area with respect to which a 
     major disaster has been declared by the President on or 
     before December 17, 2018, under section 401 of the Robert T. 
     Stafford Disaster Relief and Emergency Assistance Act by 
     reason of Hurricane Michael.
       (B) Incident beginning date.--The incident beginning date 
     of Hurricane Michael is October 7, 2018.
       (C) Incident period.--The incident period of Hurricane 
     Michael is the period beginning on the incident beginning 
     date of Hurricane Michael and ending on October 23, 2018.
       (4) Typhoon mangkhut.--
       (A) Typhoon mangkhut disaster area.--The term ``Typhoon 
     Mangkhut disaster area'' means an area with respect to which 
     a major disaster has been declared by the President on or 
     before December 17, 2018, under section 401 of the Robert T. 
     Stafford Disaster Relief and Emergency Assistance Act by 
     reason of Typhoon Mangkhut.
       (B) Incident beginning date.--The incident beginning date 
     of Typhoon Mangkhut is September 10, 2018.
       (C) Incident period.--The incident period of Typhoon 
     Mangkhut is the period beginning on the incident beginning 
     date of Typhoon Mangkhut and ending on September 11, 2018.
       (5) Typhoon yutu.--
       (A) Typhoon yutu disaster area.--The term ``Typhoon Yutu 
     disaster area'' means an area with respect to which a major 
     disaster has been declared by the President on or before 
     December 17, 2018, under section 401 of the Robert T. 
     Stafford Disaster Relief and Emergency Assistance Act by 
     reason of Typhoon Yutu.
       (B) Incident beginning date.--The incident beginning date 
     of Typhoon Yutu is October 24, 2018.
       (C) Incident period.--The incident period of Typhoon Yutu 
     is the period beginning on the incident beginning date of 
     Typhoon Yutu and ending on October 26, 2018.
       (6) Mendocino wildfire.--
       (A) Mendocino wildfire disaster area.--The term ``Mendocino 
     wildfire disaster area'' means an area with respect to which, 
     during the period beginning on August 4, 2018, and ending on 
     December 17, 2018, a major disaster has been declared by the 
     President under section 401 of the Robert T. Stafford 
     Disaster Relief and Emergency Assistance Act by reason of the 
     wildfire in California commonly known as the Mendocino 
     wildfire of 2018 (including the Carr wildfire of 2018).
       (B) Incident beginning date.--The incident beginning date 
     of the wildfires referred to in subparagraph (A) is July 23, 
     2018.
       (C) Incident period.--The incident period of the wildfires 
     referred to in subparagraph (A) is the period beginning on 
     the incident beginning date of such wildfires and ending on 
     September 19, 2018.
       (7) Camp and woolsey wildfires.--
       (A) Camp and woolsey wildfire disaster area.--The term 
     ``Camp and Woolsey wildfire disaster area'' means an area 
     with respect to which, during the period beginning on 
     November 12, 2018, and ending on December 17, 2018, a major 
     disaster has been declared by the President under section 401 
     of the Robert T. Stafford Disaster Relief and Emergency 
     Assistance Act by reason of the wildfires in California 
     commonly known as the Camp and Woolsey wildfires of 2018 
     (including the Hill wildfire of 2018).
       (B) Incident beginning date.--The incident beginning date 
     of the wildfires referred to in subparagraph (A) is November 
     8, 2018.
       (C) Incident period.--The incident period of the wildfires 
     referred to in subparagraph (A) is the period beginning on 
     the incident beginning date of such wildfires and ending on 
     November 25, 2018.
       (8) Kilauea volcanic eruption and earthquakes.--
       (A) Kilauea volcanic eruption and earthquakes disaster 
     area.--The term ``Kilauea volcanic eruption and earthquakes 
     disaster area'' means an area with respect to which, during 
     the period beginning on May 11, 2018, and ending on December 
     17, 2018, a major disaster has been declared by the President 
     under section 401 of the Robert T. Stafford Disaster Relief 
     and Emergency Assistance Act by reason of the Kilauea 
     volcanic eruption and earthquakes occurring in Hawaii during 
     the period beginning on May 3, 2018, and ending on August 17, 
     2018.
       (B) Incident beginning date.--The incident beginning date 
     of the volcanic eruption and earthquakes referred to in 
     subparagraph (A) is May 3, 2018.
       (C) Incident period.--The incident period of the volcanic 
     eruption and earthquakes referred to in subparagraph (A) is 
     the period beginning on the incident beginning date with 
     respect to such eruption and earthquakes and ending on August 
     17, 2018.
       (9) Hawaii severe storms, flooding, landslides, and 
     mudslides.--
       (A) Hawaii severe storms, flooding, landslides, and 
     mudslides disaster area.--The term ``Hawaii severe storms, 
     flooding, landslides, and mudslides disaster area'' means an 
     area with respect to which, during the period beginning on 
     May 8, 2018, and ending on December 17, 2018, a major 
     disaster has been declared by the President under section 401 
     of the Robert T. Stafford Disaster Relief and Emergency 
     Assistance Act by reason of the severe storms, flooding, 
     landslides, and mudslides occurring in Hawaii during the 
     period beginning on April 13, 2018, and ending on April 16, 
     2018.
       (B) Incident beginning date.--The incident beginning date 
     of the severe storms, flooding, landslides, and mudslides 
     referred to in subparagraph (A) is April 13, 2018.
       (C) Incident period.--The incident period of the severe 
     storms, flooding, landslides, and mudslides referred to in 
     subparagraph (A) is the period beginning on the incident 
     beginning date with respect to such severe storms, flooding, 
     landslides, and mudslides and ending on April 16, 2018.
       (10) Wisconsin severe storms, tornadoes, straight-line 
     winds, flooding, and landslides.--
       (A) Wisconsin severe storms, tornadoes, straight-line 
     winds, flooding, and landslides disaster area.--The term 
     ``Wisconsin severe storms, tornadoes, straight-line winds, 
     flooding, and landslides disaster area'' means an area with 
     respect to which, during the period beginning on October 18, 
     2018, and ending on December 17, 2018, a major disaster has 
     been declared by the President under section 401 of the 
     Robert T. Stafford Disaster Relief and Emergency Assistance 
     Act by reason of the severe storms, tornadoes, straight-line 
     winds, flooding, and landslides occurring in Wisconsin during 
     the period beginning on August 17, 2018, and ending on 
     September 14, 2018.
       (B) Incident beginning date.--The incident beginning date 
     of the severe storms, tornadoes, straight-line winds, 
     flooding, and landslides referred to in subparagraph (A) is 
     August 17, 2018.
       (C) Incident period.--The incident period of the severe 
     storms, tornadoes, straight-line winds, flooding, and 
     landslides referred to in subparagraph (A) is the period 
     beginning on the incident beginning date with respect to such 
     severe storms, tornadoes, straight-line winds, flooding, and 
     landslides and ending on September 14, 2018.
       (11) Texas severe storms and flooding.--
       (A) Texas severe storms and flooding disaster area.--The 
     term ``Texas severe storms and flooding disaster area'' means 
     an area with respect to which, during the period beginning on 
     July 6, 2018, and ending on December 17, 2018, a major 
     disaster has been declared by the President under section 401 
     of the Robert T. Stafford Disaster Relief and Emergency 
     Assistance Act by reason of the severe storms and flooding 
     occurring in Texas during the period beginning on June 19, 
     2018, and ending on July 13, 2018.
       (B) Incident beginning date.--The incident beginning date 
     of the severe storms and flooding referred to in subparagraph 
     (A) is June 19, 2018.
       (C) Incident period.--The incident period of the severe 
     storms and flooding referred to in subparagraph (A) is the 
     period beginning on the incident beginning date with respect 
     to such severe storms and flooding and ending on July 13, 
     2018.
       (12) North carolina tornado and severe storms.--
       (A) North carolina tornado and severe storms disaster 
     area.--The term ``North Carolina tornado and severe storms 
     disaster area'' means an area with respect to which, during 
     the period beginning on May 8, 2018, and ending on December 
     17, 2018, a major disaster has been declared by the President 
     under section 401 of the Robert T. Stafford Disaster Relief 
     and Emergency Assistance Act by reason of the tornado and 
     severe storms occurring in North Carolina on April 15, 2018.
       (B) Incident beginning date; incident period.--The incident 
     beginning date, and the incident period, of the tornado and 
     severe storms referred to in subparagraph (A) is April 15, 
     2018.
       (13) Indiana severe storms and flooding.--
       (A) Indiana severe storms and flooding disaster area.--The 
     term ``Indiana severe storms and flooding disaster area'' 
     means an area with respect to which, during the period 
     beginning on May 4, 2018, and ending on December 17, 2018, a 
     major disaster has been declared by the President under 
     section 401 of the

[[Page H10447]]

     Robert T. Stafford Disaster Relief and Emergency Assistance 
     Act by reason of the severe storms and flooding occurring in 
     Indiana during the period beginning on February 14, 2018, and 
     ending on March 4, 2018.
       (B) Incident beginning date.--The incident beginning date 
     of the severe storms and flooding referred to in subparagraph 
     (A) is February 14, 2018.
       (C) Incident period.--The incident period of the severe 
     storms and flooding referred to in subparagraph (A) is the 
     period beginning on the incident beginning date with respect 
     to such severe storms and flooding and ending on March 4, 
     2018.
       (14) Alabama severe storms and tornadoes.--
       (A) Alabama severe storms and tornadoes disaster area.--The 
     term ``Alabama severe storms and tornadoes disaster area'' 
     means an area with respect to which, during the period 
     beginning on April 26, 2018, and ending on December 17, 2018, 
     a major disaster has been declared by the President under 
     section 401 of the Robert T. Stafford Disaster Relief and 
     Emergency Assistance Act by reason of the severe storms and 
     tornadoes occurring in Alabama during the period beginning on 
     March 19, 2018, and ending on March 20, 2018.
       (B) Incident beginning date.--The incident beginning date 
     of the severe storms and tornadoes referred to in 
     subparagraph (A) is March 19, 2018.
       (C) Incident period.--The incident period of the severe 
     storms and tornadoes referred to in subparagraph (A) is the 
     period beginning on the incident beginning date with respect 
     to such severe storms and tornadoes and ending on March 20, 
     2018.
       (15) Tropical storm gita.--
       (A) Tropical storm gita disaster area.--The term ``Tropical 
     Storm Gita disaster area'' means an area with respect to 
     which a major disaster has been declared by the President on 
     or before December 17, 2018, under section 401 of the Robert 
     T. Stafford Disaster Relief and Emergency Assistance Act by 
     reason of Tropical Storm Gita.
       (B) Incident beginning date.--The incident beginning date 
     of Tropical Storm Gita is February 7, 2018.
       (C) Incident period.--The incident period of Tropical Storm 
     Gita is the period beginning on the incident beginning date 
     of Tropical Storm Gita and ending on February 12, 2018.

     SEC. 102. SPECIAL DISASTER-RELATED RULES FOR USE OF 
                   RETIREMENT FUNDS.

       (a) Tax-Favored Withdrawals From Retirement Plans.--
       (1) In general.--Section 72(t) of the Internal Revenue Code 
     of 1986 shall not apply to any qualified disaster 
     distribution.
       (2) Aggregate dollar limitation.--
       (A) In general.--For purposes of this subsection, the 
     aggregate amount of distributions received by an individual 
     which may be treated as qualified disaster distributions for 
     any taxable year shall not exceed the excess (if any) of--
       (i) $100,000, over
       (ii) the aggregate amounts treated as qualified disaster 
     distributions received by such individual for all prior 
     taxable years.
       (B) Treatment of plan distributions.--If a distribution to 
     an individual would (without regard to subparagraph (A)) be a 
     qualified disaster distribution, a plan shall not be treated 
     as violating any requirement of the Internal Revenue Code of 
     1986 merely because the plan treats such distribution as a 
     qualified disaster distribution, unless the aggregate amount 
     of such distributions from all plans maintained by the 
     employer (and any member of any controlled group which 
     includes the employer) to such individual exceeds $100,000.
       (C) Controlled group.--For purposes of subparagraph (B), 
     the term ``controlled group'' means any group treated as a 
     single employer under subsection (b), (c), (m), or (o) of 
     section 414 of the Internal Revenue Code of 1986.
       (D) Special rule for individuals affected by more than one 
     disaster.--The limitation of subparagraph (A) shall be 
     applied separately with respect to distributions made with 
     respect to each qualified disaster which is described in a 
     separate paragraph of section 101.
       (3) Amount distributed may be repaid.--
       (A) In general.--Any individual who receives a qualified 
     disaster distribution may, at any time during the 3-year 
     period beginning on the day after the date on which such 
     distribution was received, make 1 or more contributions in an 
     aggregate amount not to exceed the amount of such 
     distribution to an eligible retirement plan of which such 
     individual is a beneficiary and to which a rollover 
     contribution of such distribution could be made under section 
     402(c), 403(a)(4), 403(b)(8), 408(d)(3), or 457(e)(16), of 
     the Internal Revenue Code of 1986, as the case may be.
       (B) Treatment of repayments of distributions from eligible 
     retirement plans other than iras.--For purposes of the 
     Internal Revenue Code of 1986, if a contribution is made 
     pursuant to subparagraph (A) with respect to a qualified 
     disaster distribution from an eligible retirement plan other 
     than an individual retirement plan, then the taxpayer shall, 
     to the extent of the amount of the contribution, be treated 
     as having received the qualified disaster distribution in an 
     eligible rollover distribution (as defined in section 
     402(c)(4) of such Code) and as having transferred the amount 
     to the eligible retirement plan in a direct trustee to 
     trustee transfer within 60 days of the distribution.
       (C) Treatment of repayments of distributions from iras.--
     For purposes of the Internal Revenue Code of 1986, if a 
     contribution is made pursuant to subparagraph (A) with 
     respect to a qualified disaster distribution from an 
     individual retirement plan (as defined by section 7701(a)(37) 
     of such Code), then, to the extent of the amount of the 
     contribution, the qualified disaster distribution shall be 
     treated as a distribution described in section 408(d)(3) of 
     such Code and as having been transferred to the eligible 
     retirement plan in a direct trustee to trustee transfer 
     within 60 days of the distribution.
       (4) Definitions.--For purposes of this subsection--
       (A) Qualified disaster distribution.--Except as provided in 
     paragraph (2), the term ``qualified disaster distribution'' 
     means any distribution from an eligible retirement plan made 
     on or after the incident beginning date of a qualified 
     disaster and before January 1, 2020, to an individual whose 
     principal place of abode at any time during the incident 
     period of such qualified disaster is located in the qualified 
     disaster area with respect to such qualified disaster and who 
     has sustained an economic loss by reason of such qualified 
     disaster.
       (B) Eligible retirement plan.--The term ``eligible 
     retirement plan'' shall have the meaning given such term by 
     section 402(c)(8)(B) of the Internal Revenue Code of 1986.
       (5) Income inclusion spread over 3-year period.--
       (A) In general.--In the case of any qualified disaster 
     distribution, unless the taxpayer elects not to have this 
     paragraph apply for any taxable year, any amount required to 
     be included in gross income for such taxable year shall be so 
     included ratably over the 3-taxable-year period beginning 
     with such taxable year.
       (B) Special rule.--For purposes of subparagraph (A), rules 
     similar to the rules of subparagraph (E) of section 
     408A(d)(3) of the Internal Revenue Code of 1986 shall apply.
       (6) Special rules.--
       (A) Exemption of distributions from trustee to trustee 
     transfer and withholding rules.--For purposes of sections 
     401(a)(31), 402(f), and 3405 of the Internal Revenue Code of 
     1986, qualified disaster distributions shall not be treated 
     as eligible rollover distributions.
       (B) Qualified disaster distributions treated as meeting 
     plan distribution requirements.--For purposes the Internal 
     Revenue Code of 1986, a qualified disaster distribution shall 
     be treated as meeting the requirements of sections 
     401(k)(2)(B)(I), 403(b)(7)(A)(ii), 403(b)(11), and 
     457(d)(1)(A) of such Code.
       (b) Recontributions of Withdrawals for Home Purchases.--
       (1) Recontributions.--
       (A) In general.--Any individual who received a qualified 
     distribution may, during the applicable period, make 1 or 
     more contributions in an aggregate amount not to exceed the 
     amount of such qualified distribution to an eligible 
     retirement plan (as defined in section 402(c)(8)(B) of the 
     Internal Revenue Code of 1986) of which such individual is a 
     beneficiary and to which a rollover contribution of such 
     distribution could be made under section 402(c), 403(a)(4), 
     403(b)(8), or 408(d)(3), of such Code, as the case may be.
       (B) Treatment of repayments.--Rules similar to the rules of 
     subparagraphs (B) and (C) of subsection (a)(3) shall apply 
     for purposes of this subsection.
       (2) Qualified distribution.--For purposes of this 
     subsection, the term ``qualified distribution'' means any 
     distribution--
       (A) described in section 401(k)(2)(B)(i)(IV), 
     403(b)(7)(A)(ii) (but only to the extent such distribution 
     relates to financial hardship), 403(b)(11)(B), or 
     72(t)(2)(F), of the Internal Revenue Code of 1986,
       (B) which was to be used to purchase or construct a 
     principal residence in a qualified disaster area, but which 
     was not so used on account of the qualified disaster with 
     respect to such area, and
       (C) which was received on or after January 1, 2018, and 
     before the date which is 30 days after the last day of the 
     incident period of such qualified disaster.
       (3) Applicable period.--For purposes of this subsection, 
     the term ``applicable period'' means, in the case of a 
     principal residence in a qualified disaster area with respect 
     to any qualified disaster, the period beginning on the 
     incident beginning date of such qualified disaster and ending 
     on February 28, 2019.
       (c) Loans From Qualified Plans.--
       (1) Increase in limit on loans not treated as 
     distributions.--In the case of any loan from a qualified 
     employer plan (as defined under section 72(p)(4) of the 
     Internal Revenue Code of 1986) to a qualified individual made 
     during the period beginning on the date of the enactment of 
     this Act and ending on December 31, 2019--
       (A) clause (i) of section 72(p)(2)(A) of such Code shall be 
     applied by substituting ``$100,000'' for ``$50,000'', and
       (B) clause (ii) of such section shall be applied by 
     substituting ``the present value of the nonforfeitable 
     accrued benefit of the employee under the plan'' for ``one-
     half of the present value of the nonforfeitable accrued 
     benefit of the employee under the plan''.
       (2) Delay of repayment.--In the case of a qualified 
     individual (with respect to any qualified disaster) with an 
     outstanding loan on or after the incident beginning date (of 
     such qualified disaster) from a qualified employer plan (as 
     defined in section 72(p)(4) of the Internal Revenue Code of 
     1986)--
       (A) if the due date pursuant to subparagraph (B) or (C) of 
     section 72(p)(2) of such Code for any repayment with respect 
     to such loan occurs during the period beginning on the 
     incident beginning date of such qualified disaster and ending 
     on December 31, 2019, such due date shall be delayed for 1 
     year,
       (B) any subsequent repayments with respect to any such loan 
     shall be appropriately adjusted to reflect the delay in the 
     due date under paragraph (1) and any interest accruing during 
     such delay, and
       (C) in determining the 5-year period and the term of a loan 
     under subparagraph (B) or (C) of

[[Page H10448]]

     section 72(p)(2) of such Code, the period described in 
     subparagraph (A) of this paragraph shall be disregarded.
       (3) Qualified individual.--For purposes of this subsection, 
     the term ``qualified individual'' means any individual--
       (A) whose principal place of abode at any time during the 
     incident period of any qualified disaster is located in the 
     qualified disaster area with respect to such qualified 
     disaster, and
       (B) who has sustained an economic loss by reason of such 
     qualified disaster.
       (d) Provisions Relating to Plan Amendments.--
       (1) In general.--If this subsection applies to any 
     amendment to any plan or annuity contract, such plan or 
     contract shall be treated as being operated in accordance 
     with the terms of the plan during the period described in 
     paragraph (2)(B)(i).
       (2) Amendments to which subsection applies.--
       (A) In general.--This subsection shall apply to any 
     amendment to any plan or annuity contract which is made--
       (i) pursuant to any provision of this section, or pursuant 
     to any regulation issued by the Secretary or the Secretary of 
     Labor under any provision of this section, and
       (ii) on or before the last day of the first plan year 
     beginning on or after January 1, 2020, or such later date as 
     the Secretary may prescribe.

     In the case of a governmental plan (as defined in section 
     414(d) of the Internal Revenue Code of 1986), clause (ii) 
     shall be applied by substituting the date which is 2 years 
     after the date otherwise applied under clause (ii).
       (B) Conditions.--This subsection shall not apply to any 
     amendment unless--
       (i) during the period--

       (I) beginning on the date that this section or the 
     regulation described in subparagraph (A)(i) takes effect (or 
     in the case of a plan or contract amendment not required by 
     this section or such regulation, the effective date specified 
     by the plan), and
       (II) ending on the date described in subparagraph (A)(ii) 
     (or, if earlier, the date the plan or contract amendment is 
     adopted),

     the plan or contract is operated as if such plan or contract 
     amendment were in effect, and
       (ii) such plan or contract amendment applies retroactively 
     for such period.

     SEC. 103. EMPLOYEE RETENTION CREDIT FOR EMPLOYERS AFFECTED BY 
                   QUALIFIED DISASTERS.

       (a) In General.--For purposes of section 38 of the Internal 
     Revenue Code of 1986, in the case of an eligible employer, 
     the 2018 qualified disaster employee retention credit shall 
     be treated as a credit listed in subsection (b) of such 
     section. For purposes of this subsection, the 2018 qualified 
     disaster employee retention credit for any taxable year is an 
     amount equal to 40 percent of the qualified wages with 
     respect to each eligible employee of such employer for such 
     taxable year. For purposes of the preceding sentence, the 
     amount of qualified wages which may be taken into account 
     with respect to any individual shall not exceed $6,000.
       (b) Definitions.--For purposes of this section--
       (1) Eligible employer.--The term ``eligible employer'' 
     means any employer--
       (A) which conducted an active trade or business in a 
     qualified disaster zone at any time during the incident 
     period of the qualified disaster with respect to such 
     qualified disaster zone, and
       (B) with respect to whom the trade or business described in 
     subparagraph (A) is inoperable at any time after the incident 
     beginning date of such qualified disaster, and before January 
     1, 2019, as a result of damage sustained by reason of such 
     qualified disaster.
       (2) Eligible employee.--The term ``eligible employee'' 
     means with respect to an eligible employer an employee whose 
     principal place of employment at any time during the incident 
     period of the qualified disaster referred to in paragraph (1) 
     with such eligible employer was in the qualified disaster 
     zone referred to in such paragraph.
       (3) Qualified wages.--The term ``qualified wages'' means 
     wages (as defined in section 51(c)(1) of the Internal Revenue 
     Code of 1986, but without regard to section 3306(b)(2)(B) of 
     such Code) paid or incurred by an eligible employer with 
     respect to an eligible employee at any time after the 
     incident beginning date of the qualified disaster referred to 
     in paragraph (1), and before January 1, 2019, which occurs 
     during the period--
       (A) beginning on the date on which the trade or business 
     described in paragraph (1) first became inoperable at the 
     principal place of employment of the employee immediately 
     before the qualified disaster referred to in such paragraph, 
     and
       (B) ending on the date on which such trade or business has 
     resumed significant operations at such principal place of 
     employment.

     Such term shall include wages paid without regard to whether 
     the employee performs no services, performs services at a 
     different place of employment than such principal place of 
     employment, or performs services at such principal place of 
     employment before significant operations have resumed.
       (c) Certain Rules to Apply.--For purposes of this 
     subsection, rules similar to the rules of sections 51(i)(1), 
     52, and 280C(a), of the Internal Revenue Code of 1986, shall 
     apply.
       (d) Employee Not Taken Into Account More Than Once.--An 
     employee shall not be treated as an eligible employee for 
     purposes of this subsection for any period with respect to 
     any employer if such employer is allowed a credit under 
     section 51 of the Internal Revenue Code of 1986 with respect 
     to such employee for such period.

     SEC. 104. OTHER DISASTER-RELATED TAX RELIEF PROVISIONS.

       (a) Temporary Suspension of Limitations on Charitable 
     Contributions.--
       (1) In general.--Except as otherwise provided in paragraph 
     (2), subsection (b) of section 170 of the Internal Revenue 
     Code of 1986 shall not apply to qualified contributions and 
     such contributions shall not be taken into account for 
     purposes of applying subsections (b) and (d) of such section 
     to other contributions.
       (2) Treatment of excess contributions.--For purposes of 
     section 170 of the Internal Revenue Code of 1986--
       (A) Individuals.--In the case of an individual--
       (i) Limitation.--Any qualified contribution shall be 
     allowed only to the extent that the aggregate of such 
     contributions does not exceed the excess of the taxpayer's 
     contribution base (as defined in subparagraph (H) of section 
     170(b)(1) of such Code) over the amount of all other 
     charitable contributions allowed under section 170(b)(1) of 
     such Code.
       (ii) Carryover.--If the aggregate amount of qualified 
     contributions made in the contribution year (within the 
     meaning of section 170(d)(1) of such Code) exceeds the 
     limitation of clause (i), such excess shall be added to the 
     excess described in the portion of subparagraph (A) of such 
     section which precedes clause (i) thereof for purposes of 
     applying such section.
       (B) Corporations.--In the case of a corporation--
       (i) Limitation.--Any qualified contribution shall be 
     allowed only to the extent that the aggregate of such 
     contributions does not exceed the excess of the taxpayer's 
     taxable income (as determined under paragraph (2) of section 
     170(b) of such Code) over the amount of all other charitable 
     contributions allowed under such paragraph.
       (ii) Carryover.--Rules similar to the rules of subparagraph 
     (A)(ii) shall apply for purposes of this subparagraph.
       (3) Qualified contributions.--
       (A) In general.--For purposes of this subsection, the term 
     ``qualified contribution'' means any charitable contribution 
     (as defined in section 170(c) of the Internal Revenue Code of 
     1986) if--
       (i) such contribution--

       (I) is paid during the period beginning on February 7, 
     2018, and ending on December 31, 2018, in cash to an 
     organization described in section 170(b)(1)(A) of such Code, 
     and
       (II) is made for relief efforts in one or more qualified 
     disaster areas,

       (ii) the taxpayer obtains from such organization 
     contemporaneous written acknowledgment (within the meaning of 
     section 170(f)(8) of such Code) that such contribution was 
     used (or is to be used) for relief efforts described in 
     clause (i)(II), and
       (iii) the taxpayer has elected the application of this 
     subsection with respect to such contribution.
       (B) Exception.--Such term shall not include a contribution 
     by a donor if the contribution is--
       (i) to an organization described in section 509(a)(3) of 
     the Internal Revenue Code of 1986, or
       (ii) for the establishment of a new, or maintenance of an 
     existing, donor advised fund (as defined in section 
     4966(d)(2) of such Code).
       (C) Application of election to partnerships and s 
     corporations.--In the case of a partnership or S corporation, 
     the election under subparagraph (A)(iii) shall be made 
     separately by each partner or shareholder.
       (b) Special Rules for Qualified Disaster-related Personal 
     Casualty Losses.--
       (1) In general.--If an individual has a net disaster loss 
     for any taxable year--
       (A) the amount determined under section 165(h)(2)(A)(ii) of 
     the Internal Revenue Code of 1986 shall be equal to the sum 
     of--
       (i) such net disaster loss, and
       (ii) so much of the excess referred to in the matter 
     preceding clause (i) of section 165(h)(2)(A) of such Code 
     (reduced by the amount in clause (i) of this subparagraph) as 
     exceeds 10 percent of the adjusted gross income of the 
     individual,
       (B) section 165(h)(1) of such Code shall be applied by 
     substituting ``$500'' for ``$500 ($100 for taxable years 
     beginning after December 31, 2009)'',
       (C) the standard deduction determined under section 63(c) 
     of such Code shall be increased by the net disaster loss, and
       (D) section 56(b)(1)(E) of such Code shall not apply to so 
     much of the standard deduction as is attributable to the 
     increase under subparagraph (C) of this paragraph.
       (2) Net disaster loss.--For purposes of this subsection, 
     the term ``net disaster loss'' means the excess of qualified 
     disaster-related personal casualty losses over personal 
     casualty gains (as defined in section 165(h)(3)(A) of the 
     Internal Revenue Code of 1986).
       (3) Qualified disaster-related personal casualty losses.--
     For purposes of this subsection, the term ``qualified 
     disaster-related personal casualty losses'' means losses 
     described in section 165(c)(3) of the Internal Revenue Code 
     of 1986 which arise in a qualified disaster area on or after 
     the incident beginning date of the qualified disaster to 
     which such area relates, and which are attributable to such 
     qualified disaster.
       (c) Special Rule for Determining Earned Income.--
       (1) In general.--In the case of a qualified individual, if 
     the earned income of the taxpayer for the applicable taxable 
     year is less than the earned income of the taxpayer for the 
     preceding taxable year, the credits allowed under sections 
     24(d) and 32 of the Internal Revenue Code of 1986 may, at the 
     election of the taxpayer, be determined by substituting--
       (A) such earned income for the preceding taxable year, for

[[Page H10449]]

       (B) such earned income for the applicable taxable year.
       (2) Qualified individual.--For purposes of this subsection, 
     the term ``qualified individual'' means any individual whose 
     principal place of abode at any time during the incident 
     period of any qualified disaster was located--
       (A) in the qualified disaster zone with respect to such 
     qualified disaster, or
       (B) in the qualified disaster area with respect to such 
     qualified disaster (but outside the qualified disaster zone 
     with respect to such qualified disaster) and such individual 
     was displaced from such principal place of abode by reason of 
     such qualified disaster.
       (3) Applicable taxable year.--The term ``applicable taxable 
     year'' means, with respect to any qualified individual, any 
     taxable year which includes any day during the incident 
     period of the qualified disaster to which the qualified 
     disaster area referred to in paragraph (2) relates.
       (4) Earned income.--For purposes of this subsection, the 
     term ``earned income'' has the meaning given such term under 
     section 32(c) of the Internal Revenue Code of 1986.
       (5) Special rules.--
       (A) Application to joint returns.--For purposes of 
     paragraph (1), in the case of a joint return for an 
     applicable taxable year--
       (i) such paragraph shall apply if either spouse is a 
     qualified individual, and
       (ii) the earned income of the taxpayer for the preceding 
     taxable year shall be the sum of the earned income of each 
     spouse for such preceding taxable year.
       (B) Uniform application of election.--Any election made 
     under paragraph (1) shall apply with respect to both sections 
     24(d) and 32 of the Internal Revenue Code of 1986.
       (C) Errors treated as mathematical error.--For purposes of 
     section 6213 of the Internal Revenue Code of 1986, an 
     incorrect use on a return of earned income pursuant to 
     paragraph (1) shall be treated as a mathematical or clerical 
     error.
       (D) No effect on determination of gross income, etc.--
     Except as otherwise provided in this subsection, the Internal 
     Revenue Code of 1986 shall be applied without regard to any 
     substitution under paragraph (1).

     SEC. 105. TREATMENT OF CERTAIN POSSESSIONS.

       (a) Payments to Guam and the Commonwealth of the Northern 
     Mariana Islands.--The Secretary of the Treasury shall pay to 
     Guam and the Commonwealth of the Northern Mariana Islands 
     amounts equal to the loss to that possession by reason of the 
     application of the provisions of this title. Such amounts 
     shall be determined by the Secretary of the Treasury based on 
     information provided by the government of the respective 
     possession.
       (b) Payments to American Samoa.--
       (1) In general.--The Secretary of the Treasury shall pay to 
     American Samoa amounts estimated by the Secretary of the 
     Treasury as being equal to the aggregate benefits that would 
     have been provided to residents of American Samoa by reason 
     of the provisions of this title if a mirror code tax system 
     had been in effect in American Samoa. The preceding sentence 
     shall not apply unless American Samoa has a plan, which has 
     been approved by the Secretary of the Treasury, under which 
     American Samoa will promptly distribute such payments to its 
     residents.
       (2) Mirror code tax system.--For purposes of this 
     subsection, the term ``mirror code tax system'' means, with 
     respect to any possession of the United States, the income 
     tax system of such possession if the income tax liability of 
     the residents of such possession under such system is 
     determined by reference to the income tax laws of the United 
     States as if such possession were the United States.
       (c) Treatment of Payments.--For purposes of section 1324 of 
     title 31, United States Code, the payments under this section 
     shall be treated in the same manner as a refund due from a 
     credit provision referred to in subsection (b)(2) of such 
     section.

     SEC. 106. AUTOMATIC EXTENSION OF FILING DEADLINE.

       (a) In General.--Section 7508A is amended by adding at the 
     end the following new subsection:
       ``(d) Mandatory 60-day Extension.--In the case of--
       ``(1) any individual whose principal place of abode is in a 
     disaster area (as defined in section 165(i)(5)(B)), and
       ``(2) any taxpayer if the taxpayer's principal place of 
     business (other than the business of performing services of 
     an employee) is located in a disaster area (as so defined),

     the period beginning on the earliest incident date specified 
     in the declaration to which such area relates and ending on 
     the date which is 60 days after the latest incident date so 
     specified shall be disregarded in the same manner as a period 
     specified under subsection (a).''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to Federally declared disasters declared after 
     December 31, 2017.

                    TITLE II--RETIREMENT AND SAVINGS

        Subtitle A--Expanding and Preserving Retirement Savings

     SEC. 201. MULTIPLE EMPLOYER PLANS; POOLED EMPLOYER PLANS.

       (a) Qualification Requirements.--
       (1) In general.--Section 413 is amended by adding at the 
     end the following new subsection:
       ``(e) Application of Qualification Requirements for Certain 
     Multiple Employer Plans With Pooled Plan Providers.--
       ``(1) In general.--Except as provided in paragraph (2), if 
     a defined contribution plan to which subsection (c) applies--
       ``(A) is maintained by employers which have a common 
     interest other than having adopted the plan, or
       ``(B) in the case of a plan not described in subparagraph 
     (A), has a pooled plan provider,
     then the plan shall not be treated as failing to meet the 
     requirements under this title applicable to a plan described 
     in section 401(a) or to a plan that consists of individual 
     retirement accounts described in section 408 (including by 
     reason of subsection (c) thereof), whichever is applicable, 
     merely because one or more employers of employees covered by 
     the plan fail to take such actions as are required of such 
     employers for the plan to meet such requirements.
       ``(2) Limitations.--
       ``(A) In general.--Paragraph (1) shall not apply to any 
     plan unless the terms of the plan provide that in the case of 
     any employer in the plan failing to take the actions 
     described in paragraph (1)--
       ``(i) the assets of the plan attributable to employees of 
     such employer (or beneficiaries of such employees) will be 
     transferred to a plan maintained only by such employer (or 
     its successor), to an eligible retirement plan as defined in 
     section 402(c)(8)(B) for each individual whose account is 
     transferred, or to any other arrangement that the Secretary 
     determines is appropriate, unless the Secretary determines it 
     is in the best interests of the employees of such employer 
     (and the beneficiaries of such employees) to retain the 
     assets in the plan, and
       ``(ii) such employer (and not the plan with respect to 
     which the failure occurred or any other employer in such 
     plan) shall, except to the extent provided by the Secretary, 
     be liable for any liabilities with respect to such plan 
     attributable to employees of such employer (or beneficiaries 
     of such employees).
       ``(B) Failures by pooled plan providers.--If the pooled 
     plan provider of a plan described in paragraph (1)(B) does 
     not perform substantially all of the administrative duties 
     which are required of the provider under paragraph (3)(A)(i) 
     for any plan year, the Secretary may provide that the 
     determination as to whether the plan meets the requirements 
     under this title applicable to a plan described in section 
     401(a) or to a plan that consists of individual retirement 
     accounts described in section 408 (including by reason of 
     subsection (c) thereof), whichever is applicable, shall be 
     made in the same manner as would be made without regard to 
     paragraph (1).
       ``(3) Pooled plan provider.--
       ``(A) In general.--For purposes of this subsection, the 
     term `pooled plan provider' means, with respect to any plan, 
     a person who--
       ``(i) is designated by the terms of the plan as a named 
     fiduciary (within the meaning of section 402(a)(2) of the 
     Employee Retirement Income Security Act of 1974), as the plan 
     administrator, and as the person responsible to perform all 
     administrative duties (including conducting proper testing 
     with respect to the plan and the employees of each employer 
     in the plan) which are reasonably necessary to ensure that--

       ``(I) the plan meets any requirement applicable under the 
     Employee Retirement Income Security Act of 1974 or this title 
     to a plan described in section 401(a) or to a plan that 
     consists of individual retirement accounts described in 
     section 408 (including by reason of subsection (c) thereof), 
     whichever is applicable, and
       ``(II) each employer in the plan takes such actions as the 
     Secretary or such person determines are necessary for the 
     plan to meet the requirements described in subclause (I), 
     including providing to such person any disclosures or other 
     information which the Secretary may require or which such 
     person otherwise determines are necessary to administer the 
     plan or to allow the plan to meet such requirements,

       ``(ii) registers as a pooled plan provider with the 
     Secretary, and provides such other information to the 
     Secretary as the Secretary may require, before beginning 
     operations as a pooled plan provider,
       ``(iii) acknowledges in writing that such person is a named 
     fiduciary (within the meaning of section 402(a)(2) of the 
     Employee Retirement Income Security Act of 1974), and the 
     plan administrator, with respect to the plan, and
       ``(iv) is responsible for ensuring that all persons who 
     handle assets of, or who are fiduciaries of, the plan are 
     bonded in accordance with section 412 of the Employee 
     Retirement Income Security Act of 1974.
       ``(B) Audits, examinations and investigations.--The 
     Secretary may perform audits, examinations, and 
     investigations of pooled plan providers as may be necessary 
     to enforce and carry out the purposes of this subsection.
       ``(C) Aggregation rules.--For purposes of this paragraph, 
     in determining whether a person meets the requirements of 
     this paragraph to be a pooled plan provider with respect to 
     any plan, all persons who perform services for the plan and 
     who are treated as a single employer under subsection (b), 
     (c), (m), or (o) of section 414 shall be treated as one 
     person.
       ``(D) Treatment of employers as plan sponsors.--Except with 
     respect to the administrative duties of the pooled plan 
     provider described in subparagraph (A)(i), each employer in a 
     plan which has a pooled plan provider shall be treated as the 
     plan sponsor with respect to the portion of the plan 
     attributable to employees of such employer (or beneficiaries 
     of such employees).
       ``(4) Guidance.--The Secretary shall issue such guidance as 
     the Secretary determines appropriate to carry out this 
     subsection, including guidance--
       ``(A) to identify the administrative duties and other 
     actions required to be performed by a pooled plan provider 
     under this subsection,
       ``(B) which describes the procedures to be taken to 
     terminate a plan which fails to meet the requirements to be a 
     plan described in paragraph (1), including the proper 
     treatment of, and actions needed to be taken by, any employer 
     in the plan and the assets and liabilities of the plan 
     attributable to employees of such

[[Page H10450]]

     employer (or beneficiaries of such employees), and
       ``(C) identifying appropriate cases to which the rules of 
     paragraph (2)(A) will apply to employers in the plan failing 
     to take the actions described in paragraph (1).

     The Secretary shall take into account under subparagraph (C) 
     whether the failure of an employer or pooled plan provider to 
     provide any disclosures or other information, or to take any 
     other action, necessary to administer a plan or to allow a 
     plan to meet requirements applicable to the plan under 
     section 401(a) or 408, whichever is applicable, has continued 
     over a period of time that demonstrates a lack of commitment 
     to compliance.
       ``(5) Model plan.--The Secretary shall publish model plan 
     language which meets the requirements of this subsection and 
     of paragraphs (43) and (44) of section 3 of the Employee 
     Retirement Income Security Act of 1974 and which may be 
     adopted in order for a plan to be treated as a plan described 
     in paragraph (1)(B).''.
       (2) Conforming amendment.--Section 413(c)(2) is amended by 
     striking ``section 401(a)'' and inserting ``sections 401(a) 
     and 408(c)''.
       (3) Technical amendment.--Section 408(c) is amended by 
     inserting after paragraph (2) the following new paragraph:
       ``(3) There is a separate accounting for any interest of an 
     employee or member (or spouse of an employee or member) in a 
     Roth IRA.''.
       (b) No Common Interest Required for Pooled Employer 
     Plans.--Section 3(2) of the Employee Retirement Income 
     Security Act of 1974 (29 U.S.C. 1002(2)) is amended by adding 
     at the end the following:
       ``(C) A pooled employer plan shall be treated as--
       ``(i) a single employee pension benefit plan or single 
     pension plan; and
       ``(ii) a plan to which section 210(a) applies.''.
       (c) Pooled Employer Plan and Provider Defined.--
       (1) In general.--Section 3 of the Employee Retirement 
     Income Security Act of 1974 (29 U.S.C. 1002) is amended by 
     adding at the end the following:
       ``(43) Pooled employer plan.--
       ``(A) In general.--The term `pooled employer plan' means a 
     plan--
       ``(i) which is an individual account plan established or 
     maintained for the purpose of providing benefits to the 
     employees of 2 or more employers;
       ``(ii) which is a plan described in section 401(a) of the 
     Internal Revenue Code of 1986 which includes a trust exempt 
     from tax under section 501(a) of such Code or a plan that 
     consists of individual retirement accounts described in 
     section 408 of such Code (including by reason of subsection 
     (c) thereof); and
       ``(iii) the terms of which meet the requirements of 
     subparagraph (B).

     Such term shall not include a plan maintained by employers 
     which have a common interest other than having adopted the 
     plan.
       ``(B) Requirements for plan terms.--The requirements of 
     this subparagraph are met with respect to any plan if the 
     terms of the plan--
       ``(i) designate a pooled plan provider and provide that the 
     pooled plan provider is a named fiduciary of the plan;
       ``(ii) designate one or more trustees meeting the 
     requirements of section 408(a)(2) of the Internal Revenue 
     Code of 1986 (other than an employer in the plan) to be 
     responsible for collecting contributions to, and holding the 
     assets of, the plan and require such trustees to implement 
     written contribution collection procedures that are 
     reasonable, diligent, and systematic;
       ``(iii) provide that each employer in the plan retains 
     fiduciary responsibility for--

       ``(I) the selection and monitoring in accordance with 
     section 404(a) of the person designated as the pooled plan 
     provider and any other person who, in addition to the pooled 
     plan provider, is designated as a named fiduciary of the 
     plan; and
       ``(II) to the extent not otherwise delegated to another 
     fiduciary by the pooled plan provider and subject to the 
     provisions of section 404(c), the investment and management 
     of the portion of the plan's assets attributable to the 
     employees of the employer (or beneficiaries of such 
     employees);

       ``(iv) provide that employers in the plan, and participants 
     and beneficiaries, are not subject to unreasonable 
     restrictions, fees, or penalties with regard to ceasing 
     participation, receipt of distributions, or otherwise 
     transferring assets of the plan in accordance with section 
     208 or paragraph (44)(C)(i)(II);
       ``(v) require--

       ``(I) the pooled plan provider to provide to employers in 
     the plan any disclosures or other information which the 
     Secretary may require, including any disclosures or other 
     information to facilitate the selection or any monitoring of 
     the pooled plan provider by employers in the plan; and
       ``(II) each employer in the plan to take such actions as 
     the Secretary or the pooled plan provider determines are 
     necessary to administer the plan or for the plan to meet any 
     requirement applicable under this Act or the Internal Revenue 
     Code of 1986 to a plan described in section 401(a) of such 
     Code or to a plan that consists of individual retirement 
     accounts described in section 408 of such Code (including by 
     reason of subsection (c) thereof), whichever is applicable, 
     including providing any disclosures or other information 
     which the Secretary may require or which the pooled plan 
     provider otherwise determines are necessary to administer the 
     plan or to allow the plan to meet such requirements; and

       ``(vi) provide that any disclosure or other information 
     required to be provided under clause (v) may be provided in 
     electronic form and will be designed to ensure only 
     reasonable costs are imposed on pooled plan providers and 
     employers in the plan.
       ``(C) Exceptions.--The term `pooled employer plan' does not 
     include--
       ``(i) a multiemployer plan; or
       ``(ii) a plan established before the date of the enactment 
     of the Retirement, Savings, and Other Tax Relief Act of 2018 
     unless the plan administrator elects that the plan will be 
     treated as a pooled employer plan and the plan meets the 
     requirements of this title applicable to a pooled employer 
     plan established on or after such date.
       ``(D) Treatment of employers as plan sponsors.--Except with 
     respect to the administrative duties of the pooled plan 
     provider described in paragraph (44)(A)(i), each employer in 
     a pooled employer plan shall be treated as the plan sponsor 
     with respect to the portion of the plan attributable to 
     employees of such employer (or beneficiaries of such 
     employees).
       ``(44) Pooled plan provider.--
       ``(A) In general.--The term `pooled plan provider' means a 
     person who--
       ``(i) is designated by the terms of a pooled employer plan 
     as a named fiduciary, as the plan administrator, and as the 
     person responsible for the performance of all administrative 
     duties (including conducting proper testing with respect to 
     the plan and the employees of each employer in the plan) 
     which are reasonably necessary to ensure that--

       ``(I) the plan meets any requirement applicable under this 
     Act or the Internal Revenue Code of 1986 to a plan described 
     in section 401(a) of such Code or to a plan that consists of 
     individual retirement accounts described in section 408 of 
     such Code (including by reason of subsection (c) thereof), 
     whichever is applicable; and
       ``(II) each employer in the plan takes such actions as the 
     Secretary or pooled plan provider determines are necessary 
     for the plan to meet the requirements described in subclause 
     (I), including providing the disclosures and information 
     described in paragraph (43)(B)(v)(II);

       ``(ii) registers as a pooled plan provider with the 
     Secretary, and provides to the Secretary such other 
     information as the Secretary may require, before beginning 
     operations as a pooled plan provider;
       ``(iii) acknowledges in writing that such person is a named 
     fiduciary, and the plan administrator, with respect to the 
     pooled employer plan; and
       ``(iv) is responsible for ensuring that all persons who 
     handle assets of, or who are fiduciaries of, the pooled 
     employer plan are bonded in accordance with section 412.
       ``(B) Audits, examinations and investigations.--The 
     Secretary may perform audits, examinations, and 
     investigations of pooled plan providers as may be necessary 
     to enforce and carry out the purposes of this paragraph and 
     paragraph (43).
       ``(C) Guidance.--The Secretary shall issue such guidance as 
     the Secretary determines appropriate to carry out this 
     paragraph and paragraph (43), including guidance--
       ``(i) to identify the administrative duties and other 
     actions required to be performed by a pooled plan provider 
     under either such paragraph; and
       ``(ii) which requires in appropriate cases that if an 
     employer in the plan fails to take the actions required under 
     subparagraph (A)(i)(II)--

       ``(I) the assets of the plan attributable to employees of 
     such employer (or beneficiaries of such employees) are 
     transferred to a plan maintained only by such employer (or 
     its successor), to an eligible retirement plan as defined in 
     section 402(c)(8)(B) of the Internal Revenue Code of 1986 for 
     each individual whose account is transferred, or to any other 
     arrangement that the Secretary determines is appropriate in 
     such guidance; and
       ``(II) such employer (and not the plan with respect to 
     which the failure occurred or any other employer in such 
     plan) shall, except to the extent provided in such guidance, 
     be liable for any liabilities with respect to such plan 
     attributable to employees of such employer (or beneficiaries 
     of such employees).

     The Secretary shall take into account under clause (ii) 
     whether the failure of an employer or pooled plan provider to 
     provide any disclosures or other information, or to take any 
     other action, necessary to administer a plan or to allow a 
     plan to meet requirements described in subparagraph 
     (A)(i)(II) has continued over a period of time that 
     demonstrates a lack of commitment to compliance. The 
     Secretary may waive the requirements of subclause (ii)(I) in 
     appropriate circumstances if the Secretary determines it is 
     in the best interests of the employees of the employer 
     referred to in such clause (and the beneficiaries of such 
     employees) to retain the assets in the plan with respect to 
     which the employer's failure occurred.
       ``(D) Aggregation rules.--For purposes of this paragraph, 
     in determining whether a person meets the requirements of 
     this paragraph to be a pooled plan provider with respect to 
     any plan, all persons who perform services for the plan and 
     who are treated as a single employer under subsection (b), 
     (c), (m), or (o) of section 414 of the Internal Revenue Code 
     of 1986 shall be treated as one person.''.
       (2) Bonding requirements for pooled employer plans.--The 
     last sentence of section 412(a) of the Employee Retirement 
     Income Security Act of 1974 (29 U.S.C. 1112(a)) is amended by 
     inserting ``or in the case of a pooled employer plan (as 
     defined in section 3(43))'' after ``section 407(d)(1))''.
       (3) Conforming and technical amendments.--Section 3 of the 
     Employee Retirement Income Security Act of 1974 (29 U.S.C. 
     1002) is amended--
       (A) in paragraph (16)(B)--
       (i) by striking ``or'' at the end of clause (ii); and
       (ii) by striking the period at the end and inserting ``, or 
     (iv) in the case of a pooled employer plan, the pooled plan 
     provider.''; and

[[Page H10451]]

       (B) by striking the second paragraph (41).
       (d) Pooled Employer and Multiple Employer Plan Reporting.--
       (1) Additional information.--Section 103 of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1023) is 
     amended--
       (A) in subsection (a)(1)(B), by striking ``applicable 
     subsections (d), (e), and (f)'' and inserting ``applicable 
     subsections (d), (e), (f), and (g)''; and
       (B) by amending subsection (g) to read as follows:
       ``(g) Additional Information With Respect to Pooled 
     Employer and Multiple Employer Plans.--An annual report under 
     this section for a plan year shall include--
       ``(1) with respect to any plan to which section 210(a) 
     applies (including a pooled employer plan), a list of 
     employers in the plan, a good faith estimate of the 
     percentage of total contributions made by such employers 
     during the plan year, and the aggregate account balances 
     attributable to each employer in the plan (determined as the 
     sum of the account balances of the employees of such employer 
     (and the beneficiaries of such employees)); and
       ``(2) with respect to a pooled employer plan, the 
     identifying information for the person designated under the 
     terms of the plan as the pooled plan provider.''.
       (2) Simplified annual reports.--Section 104(a) of the 
     Employee Retirement Income Security Act of 1974 (29 U.S.C. 
     1024(a)) is amended by striking paragraph (2)(A) and 
     inserting the following:
       ``(2)(A) With respect to annual reports required to be 
     filed with the Secretary under this part, the Secretary may 
     by regulation prescribe simplified annual reports for any 
     pension plan that--
       ``(i) covers fewer than 100 participants; or
       ``(ii) is a plan described in section 210(a) that covers 
     fewer than 1,000 participants, but only if no single employer 
     in the plan has 100 or more participants covered by the 
     plan.''.
       (e) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     apply to plan years beginning after December 31, 2019.
       (2) Rule of construction.--Nothing in the amendments made 
     by subsection (a) shall be construed as limiting the 
     authority of the Secretary of the Treasury or the Secretary's 
     delegate (determined without regard to such amendments) to 
     provide for the proper treatment of a failure to meet any 
     requirement applicable under the Internal Revenue Code of 
     1986 with respect to one employer (and its employees) in a 
     multiple employer plan.

     SEC. 202. RULES RELATING TO ELECTION OF SAFE HARBOR 401(K) 
                   STATUS.

       (a) Limitation of Annual Safe Harbor Notice to Matching 
     Contribution Plans.--
       (1) In general.--Section 401(k)(12)(A) is amended by 
     striking ``if such arrangement'' and all that follows and 
     inserting ``if such arrangement--
       ``(i) meets the contribution requirements of subparagraph 
     (B) and the notice requirements of subparagraph (D), or
       ``(ii) meets the contribution requirements of subparagraph 
     (C).''.
       (2) Automatic contribution arrangements.--Section 
     401(k)(13)(B) is amended by striking ``means'' and all that 
     follows and inserting ``means a cash or deferred 
     arrangement--
       ``(i) which is described in subparagraph (D)(i)(I) and 
     meets the applicable requirements of subparagraphs (C) 
     through (E), or
       ``(ii) which is described in subparagraph (D)(i)(II) and 
     meets the applicable requirements of subparagraphs (C) and 
     (D).''.
       (b) Nonelective Contributions.--Section 401(k)(12) is 
     amended by redesignating subparagraph (F) as subparagraph 
     (G), and by inserting after subparagraph (E) the following 
     new subparagraph:
       ``(F) Timing of plan amendment for employer making 
     nonelective contributions.--
       ``(i) In general.--Except as provided in clause (ii), a 
     plan may be amended after the beginning of a plan year to 
     provide that the requirements of subparagraph (C) shall apply 
     to the arrangement for the plan year, but only if the 
     amendment is adopted--

       ``(I) at any time before the 30th day before the close of 
     the plan year, or
       ``(II) at any time before the last day under paragraph 
     (8)(A) for distributing excess contributions for the plan 
     year.

       ``(ii) Exception where plan provided for matching 
     contributions.--Clause (i) shall not apply to any plan year 
     if the plan provided at any time during the plan year that 
     the requirements of subparagraph (B) or paragraph 
     (13)(D)(i)(I) applied to the plan year.
       ``(iii) 4-percent contribution requirement.--Clause (i)(II) 
     shall not apply to an arrangement unless the amount of the 
     contributions described in subparagraph (C) which the 
     employer is required to make under the arrangement for the 
     plan year with respect to any employee is an amount equal to 
     at least 4 percent of the employee's compensation.''.
       (c) Automatic Contribution Arrangements.--Section 
     401(k)(13) is amended by adding at the end the following:
       ``(F) Timing of plan amendment for employer making 
     nonelective contributions.--
       ``(i) In general.--Except as provided in clause (ii), a 
     plan may be amended after the beginning of a plan year to 
     provide that the requirements of subparagraph (D)(i)(II) 
     shall apply to the arrangement for the plan year, but only if 
     the amendment is adopted--

       ``(I) at any time before the 30th day before the close of 
     the plan year, or
       ``(II) at any time before the last day under paragraph 
     (8)(A) for distributing excess contributions for the plan 
     year.

       ``(ii) Exception where plan provided for matching 
     contributions.--Clause (i) shall not apply to any plan year 
     if the plan provided at any time during the plan year that 
     the requirements of subparagraph (D)(i)(I) or paragraph 
     (12)(B) applied to the plan year.
       ``(iii) 4-percent contribution requirement.--Clause (i)(II) 
     shall not apply to an arrangement unless the amount of the 
     contributions described in subparagraph (D)(i)(II) which the 
     employer is required to make under the arrangement for the 
     plan year with respect to any employee is an amount equal to 
     at least 4 percent of the employee's compensation.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to plan years beginning after December 31, 2018.

     SEC. 203. CERTAIN TAXABLE NON-TUITION FELLOWSHIP AND STIPEND 
                   PAYMENTS TREATED AS COMPENSATION FOR IRA 
                   PURPOSES.

       (a) In General.--Section 219(f)(1) is amended by adding at 
     the end the following: ``The term `compensation' shall 
     include any amount included in gross income and paid to an 
     individual to aid the individual in the pursuit of graduate 
     or postdoctoral study.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2018.

     SEC. 204. REPEAL OF MAXIMUM AGE FOR TRADITIONAL IRA 
                   CONTRIBUTIONS.

       (a) In General.--Section 219(d) is amended by striking 
     paragraph (1).
       (b) Conforming Amendment.--Section 408A(c) is amended by 
     striking paragraph (4) and by redesignating paragraphs (5), 
     (6), and (7) as paragraphs (4), (5), and (6), respectively.
       (c) Effective Date.--The amendments made by this section 
     shall apply to contributions made for taxable years beginning 
     after December 31, 2018.

     SEC. 205. QUALIFIED EMPLOYER PLANS PROHIBITED FROM MAKING 
                   LOANS THROUGH CREDIT CARDS AND OTHER SIMILAR 
                   ARRANGEMENTS.

       (a) In General.--Section 72(p)(2) is amended by 
     redesignating subparagraph (D) as subparagraph (E) and by 
     inserting after subparagraph (C) the following new 
     subparagraph:
       ``(D) Prohibition of loans through credit cards and other 
     similar arrangements.--Notwithstanding subparagraph (A), 
     paragraph (1) shall apply to any loan which is made through 
     the use of any credit card or any other similar 
     arrangement.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to loans made after the date of the enactment of 
     this Act.

     SEC. 206. PORTABILITY OF LIFETIME INCOME INVESTMENTS.

       (a) In General.--Section 401(a) is amended by inserting 
     after paragraph (37) the following new paragraph:
       ``(38) Portability of lifetime income investments.--
       ``(A) In general.--Except as may be otherwise provided by 
     regulations, a trust forming part of a defined contribution 
     plan shall not be treated as failing to constitute a 
     qualified trust under this section solely by reason of 
     allowing--
       ``(i) qualified distributions of a lifetime income 
     investment, or
       ``(ii) distributions of a lifetime income investment in the 
     form of a qualified plan distribution annuity contract,

     on or after the date that is 90 days prior to the date on 
     which such lifetime income investment is no longer authorized 
     to be held as an investment option under the plan.
       ``(B) Definitions.--For purposes of this subsection--
       ``(i) the term `qualified distribution' means a direct 
     trustee-to-trustee transfer described in paragraph (31)(A) to 
     an eligible retirement plan (as defined in section 
     402(c)(8)(B)),
       ``(ii) the term `lifetime income investment' means an 
     investment option which is designed to provide an employee 
     with election rights--

       ``(I) which are not uniformly available with respect to 
     other investment options under the plan, and
       ``(II) which are to a lifetime income feature available 
     through a contract or other arrangement offered under the 
     plan (or under another eligible retirement plan (as so 
     defined), if paid by means of a direct trustee-to-trustee 
     transfer described in paragraph (31)(A) to such other 
     eligible retirement plan),

       ``(iii) the term `lifetime income feature' means--

       ``(I) a feature which guarantees a minimum level of income 
     annually (or more frequently) for at least the remainder of 
     the life of the employee or the joint lives of the employee 
     and the employee's designated beneficiary, or
       ``(II) an annuity payable on behalf of the employee under 
     which payments are made in substantially equal periodic 
     payments (not less frequently than annually) over the life of 
     the employee or the joint lives of the employee and the 
     employee's designated beneficiary, and

       ``(iv) the term `qualified plan distribution annuity 
     contract' means an annuity contract purchased for a 
     participant and distributed to the participant by a plan or 
     contract described in subparagraph (B) of section 402(c)(8) 
     (without regard to clauses (i) and (ii) thereof).''.
       (b) Cash or Deferred Arrangement.--
       (1) In general.--Section 401(k)(2)(B)(i) is amended by 
     striking ``or'' at the end of subclause (IV), by striking 
     ``and'' at the end of subclause (V) and inserting ``or'', and 
     by adding at the end the following new subclause:

       ``(VI) except as may be otherwise provided by regulations, 
     with respect to amounts invested in a lifetime income 
     investment (as defined in subsection (a)(38)(B)(ii)), the 
     date that is 90 days prior to the date that such lifetime 
     income investment may no longer be held as an investment 
     option under the arrangement, and''.

[[Page H10452]]

       (2) Distribution requirement.--Section 401(k)(2)(B), as 
     amended by paragraph (1), is amended by striking ``and'' at 
     the end of clause (i), by striking the semicolon at the end 
     of clause (ii) and inserting ``, and'', and by adding at the 
     end the following new clause:
       ``(iii) except as may be otherwise provided by regulations, 
     in the case of amounts described in clause (i)(VI), will be 
     distributed only in the form of a qualified distribution (as 
     defined in subsection (a)(38)(B)(i)) or a qualified plan 
     distribution annuity contract (as defined in subsection 
     (a)(38)(B)(iv)),''.
       (c) Section 403(b) Plans.--
       (1) Annuity contracts.--Section 403(b)(11) is amended by 
     striking ``or'' at the end of subparagraph (B), by striking 
     the period at the end of subparagraph (C) and inserting ``, 
     or'', and by inserting after subparagraph (C) the following 
     new subparagraph:
       ``(D) except as may be otherwise provided by regulations, 
     with respect to amounts invested in a lifetime income 
     investment (as defined in section 401(a)(38)(B)(ii))--
       ``(i) on or after the date that is 90 days prior to the 
     date that such lifetime income investment may no longer be 
     held as an investment option under the contract, and
       ``(ii) in the form of a qualified distribution (as defined 
     in section 401(a)(38)(B)(i)) or a qualified plan distribution 
     annuity contract (as defined in section 
     401(a)(38)(B)(iv)).''.
       (2) Custodial accounts.--Section 403(b)(7)(A) is amended by 
     striking ``if--'' and all that follows and inserting ``if the 
     amounts are to be invested in regulated investment company 
     stock to be held in that custodial account, and under the 
     custodial account--
       ``(i) no such amounts may be paid or made available to any 
     distributee (unless such amount is a distribution to which 
     section 72(t)(2)(G) applies) before--

       ``(I) the employee dies,
       ``(II) the employee attains age 59\1/2\,
       ``(III) the employee has a severance from employment,
       ``(IV) the employee becomes disabled (within the meaning of 
     section 72(m)(7)),
       ``(V) in the case of contributions made pursuant to a 
     salary reduction agreement (within the meaning of section 
     3121(a)(5)(D)), the employee encounters financial hardship, 
     or
       ``(VI) except as may be otherwise provided by regulations, 
     with respect to amounts invested in a lifetime income 
     investment (as defined in section 401(a)(38)(B)(ii)), the 
     date that is 90 days prior to the date that such lifetime 
     income investment may no longer be held as an investment 
     option under the contract, and

       ``(ii) in the case of amounts described in clause (i)(VI), 
     such amounts will be distributed only in the form of a 
     qualified distribution (as defined in section 
     401(a)(38)(B)(i)) or a qualified plan distribution annuity 
     contract (as defined in section 401(a)(38)(B)(iv)).''.
       (d) Eligible Deferred Compensation Plans.--
       (1) In general.--Section 457(d)(1)(A) is amended by 
     striking ``or'' at the end of clause (ii), by inserting 
     ``or'' at the end of clause (iii), and by adding after clause 
     (iii) the following:
       ``(iv) except as may be otherwise provided by regulations, 
     in the case of a plan maintained by an employer described in 
     subsection (e)(1)(A), with respect to amounts invested in a 
     lifetime income investment (as defined in section 
     401(a)(38)(B)(ii)), the date that is 90 days prior to the 
     date that such lifetime income investment may no longer be 
     held as an investment option under the plan,''.
       (2) Distribution requirement.--Section 457(d)(1) is amended 
     by striking ``and'' at the end of subparagraph (B), by 
     striking the period at the end of subparagraph (C) and 
     inserting ``, and'', and by inserting after subparagraph (C) 
     the following new subparagraph:
       ``(D) except as may be otherwise provided by regulations, 
     in the case of amounts described in subparagraph (A)(iv), 
     such amounts will be distributed only in the form of a 
     qualified distribution (as defined in section 
     401(a)(38)(B)(i)) or a qualified plan distribution annuity 
     contract (as defined in section 401(a)(38)(B)(iv)).''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to plan years beginning after December 31, 2018.

     SEC. 207. TREATMENT OF CUSTODIAL ACCOUNTS ON TERMINATION OF 
                   SECTION 403(B) PLANS.

       Not later than six months after the date of enactment of 
     this Act, the Secretary of the Treasury shall issue guidance 
     to provide that, if an employer terminates the plan under 
     which amounts are contributed to a custodial account under 
     subparagraph (A) of section 403(b)(7), the plan administrator 
     or custodian may distribute an individual custodial account 
     in kind to a participant or beneficiary of the plan and the 
     distributed custodial account shall be maintained by the 
     custodian on a tax-deferred basis as a section 403(b)(7) 
     custodial account, similar to the treatment of fully-paid 
     individual annuity contracts under Revenue Ruling 2011-7, 
     until amounts are actually paid to the participant or 
     beneficiary. The guidance shall provide further (i) that the 
     section 403(b)(7) status of the distributed custodial account 
     is generally maintained if the custodial account thereafter 
     adheres to the requirements of section 403(b) that are in 
     effect at the time of the distribution of the account and 
     (ii) that a custodial account would not be considered 
     distributed to the participant or beneficiary if the employer 
     has any material retained rights under the account (but the 
     employer would not be treated as retaining material rights 
     simply because the custodial account was originally opened 
     under a group contract).

     SEC. 208. CLARIFICATION OF RETIREMENT INCOME ACCOUNT RULES 
                   RELATING TO CHURCH-CONTROLLED ORGANIZATIONS.

       (a) In General.--Section 403(b)(9)(B) is amended by 
     inserting ``(including an employee described in section 
     414(e)(3)(B))'' after ``employee described in paragraph 
     (1)''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to years beginning before, on, or after the date 
     of the enactment of this Act.

     SEC. 209. INCREASE IN 10 PERCENT CAP FOR AUTOMATIC ENROLLMENT 
                   SAFE HARBOR AFTER 1ST PLAN YEAR.

       (a) In General.--Section 401(k)(13)(C)(iii) is amended by 
     striking ``does not exceed 10 percent'' and inserting ``does 
     not exceed 15 percent (10 percent during the period described 
     in subclause (I))''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to plan years beginning after December 31, 2018.

     SEC. 210. INCREASE IN CREDIT LIMITATION FOR SMALL EMPLOYER 
                   PENSION PLAN STARTUP COSTS.

       (a) In General.--Paragraph (1) of section 45E(b) is amended 
     to read as follows:
       ``(1) for the first credit year and each of the 2 taxable 
     years immediately following the first credit year, the 
     greater of--
       ``(A) $500, or
       ``(B) the lesser of--
       ``(i) $250 for each employee of the eligible employer who 
     is not a highly compensated employee (as defined in section 
     414(q)) and who is eligible to participate in the eligible 
     employer plan maintained by the eligible employer, or
       ``(ii) $1,500, and''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2018.

     SEC. 211. SMALL EMPLOYER AUTOMATIC ENROLLMENT CREDIT.

       (a) In General.--Section 45E is amended by adding at the 
     end the following new subsection:''.
       ``(f) Credit for Auto-enrollment Option for Retirement 
     Savings Options.--
       ``(1) In general.--The credit allowed under subsection (a) 
     for any taxable year during an eligible employer's retirement 
     auto-enrollment credit period shall be increased (without 
     regard to subsection (b)) by $500.
       ``(2) Retirement auto-enrollment credit period.--
       ``(A) In general.--The retirement auto-enrollment credit 
     period with respect to any eligible employer is the 3-
     taxable-year period beginning with the first taxable year for 
     which the employer includes an eligible automatic 
     contribution arrangement (as defined in section 414(w)(3)) in 
     a qualified employer plan (as defined in section 4972(d)) 
     sponsored by the employer.
       ``(B) Maintenance of arrangement.--No taxable year with 
     respect to an employer shall be treated as occurring within 
     the retirement auto-enrollment credit period unless the 
     arrangement described in subparagraph (A) is included in the 
     plan for such year.
       ``(3) Not limited to new plans.--This subsection shall be 
     applied without regard to subsection (c)(2).''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2018.

     SEC. 212. EXEMPTION FROM REQUIRED MINIMUM DISTRIBUTION RULES 
                   FOR INDIVIDUALS WITH CERTAIN ACCOUNT BALANCES.

       (a) In General.--Section 401(a)(9) is amended by adding at 
     the end the following new subparagraph:
       ``(H) Exception from required minimum distributions during 
     life of employee where assets do not exceed $50,000.--
       ``(i) In general.--If on the last day of any calendar year 
     the aggregate value of an employee's entire interest under 
     all applicable eligible retirement plans does not exceed 
     $50,000, then the requirements of subparagraph (A) with 
     respect to any distribution relating to such year shall not 
     apply with respect to such employee.
       ``(ii) Applicable eligible retirement plan.--For purposes 
     of this subparagraph, the term `applicable eligible 
     retirement plan' means an eligible retirement plan (as 
     defined in section 402(c)(8)(B)) other than a defined benefit 
     plan.
       ``(iii) Limit on required minimum distribution.--The 
     required minimum distribution determined under subparagraph 
     (A) for an employee under all applicable eligible retirement 
     plans shall not exceed an amount equal to the excess of--

       ``(I) the aggregate value of an employee's entire interest 
     under such plans on the last day of the calendar year to 
     which such distribution relates, over
       ``(II) the dollar amount in effect under clause (i) for 
     such calendar year.

     The Secretary in regulations or other guidance may provide 
     how such amount shall be distributed in the case of an 
     individual with more than one applicable eligible retirement 
     plan.
       ``(iv) Inflation adjustment.--In the case of any calendar 
     year beginning after 2019, the $50,000 amount in clause (i) 
     shall be increased by an amount equal to--

       ``(I) such dollar amount, multiplied by
       ``(II) the cost of living adjustment determined under 
     section 1(f)(3) for the calendar year, determined by 
     substituting `calendar year 2018' for `calendar year 2016' in 
     subparagraph (A)(ii) thereof.

     Any increase determined under this clause shall be rounded to 
     the next lowest multiple of $5,000.
       ``(v) Plan administrator reliance on employee 
     certification.--An applicable eligible retirement plan 
     described in clause (iii), (iv), (v), or (vi) of section 
     402(c)(8)(B) shall not be treated as failing to meet the 
     requirements of this paragraph in the case of any failure to 
     make a required minimum distribution for a calendar year if--

       ``(I) the aggregate value of an employee's entire interest 
     under all applicable eligible retirement plans of the 
     employer on the last day of

[[Page H10453]]

     the calendar year to which such distribution relates does not 
     exceed the dollar amount in effect for such year under clause 
     (i), and
       ``(II) the employee certifies that the aggregate value of 
     the employee's entire interest under all applicable eligible 
     retirement plans on the last day of the calendar year to 
     which such distribution relates did not exceed the dollar 
     amount in effect for such year under clause (i).

       ``(vi) Aggregation rule.--All employers treated as a single 
     employer under subsection (b), (c), (m), or (o) of section 
     414 shall be treated as a single employer for purposes of 
     clause (v).''.
       (b) Plan Administrator Reporting.--Section 6047 is amended 
     by redesignating subsection (h) as subsection (i) and by 
     inserting after subsection (g) the following new subsection:
       ``(h) Account Balance for Participants Who Have Attained 
     Age 69.--
       ``(1) In general.--Not later than January 31 of each year, 
     the plan administrator (as defined in section 414(g)) of each 
     applicable eligible retirement plan (as defined in section 
     401(a)(9)(H)) shall make a return to the Secretary with 
     respect to each participant of such plan who has attained age 
     69 as of the end of the preceding calendar year which 
     states--
       ``(A) the name and plan number of the plan,
       ``(B) the name and address of the plan administrator,
       ``(C) the name, address, and taxpayer identification number 
     of the participant, and
       ``(D) the account balance of such participant as of the end 
     of the preceding calendar year.
       ``(2) Statement furnished to participant.--Every person 
     required to make a return under paragraph (1) with respect to 
     a participant shall furnish a copy of such return to such 
     participant.
       ``(3) Application to individual retirement plans and 
     annuities.--In the case of an applicable eligible retirement 
     plan described in clause (i) or (ii) of section 
     402(c)(8)(B)--
       ``(A) any reference in this subsection to the plan 
     administrator shall be treated as a reference to the trustee 
     or issuer, as the case may be, and
       ``(B) any reference in this subsection to the participant 
     shall be treated as a reference to the individual for whom 
     such account or annuity is maintained.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to distributions required to be made in calendar 
     years beginning more than 120 days after the date of the 
     enactment of this Act.

     SEC. 213. ELECTIVE DEFERRALS BY MEMBERS OF THE READY RESERVE 
                   OF A RESERVE COMPONENT OF THE ARMED FORCES.

       (a) In General.--Section 402(g) is amended by adding at the 
     end the following new paragraph:
       ``(9) Elective deferrals by members of ready reserve.--
       ``(A) In general.--In the case of a qualified ready 
     reservist for any taxable year, the limitations of 
     subparagraphs (A) and (C) of paragraph (1) shall be applied 
     separately with respect to--
       ``(i) elective deferrals of such qualified ready reservist 
     with respect to compensation described in subparagraph (B), 
     and
       ``(ii) all other elective deferrals of such qualified ready 
     reservist.
       ``(B) Qualified ready reservist.--For purposes of this 
     paragraph, the term `qualified ready reservist' means any 
     individual for any taxable year if such individual received 
     compensation for service as a member of the Ready Reserve of 
     a reserve component (as defined in section 101 of title 37, 
     United States Code) during such taxable year.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to plan years beginning after December 31, 2018.

                Subtitle B--Administrative Improvements

     SEC. 221. PLAN ADOPTED BY FILING DUE DATE FOR YEAR MAY BE 
                   TREATED AS IN EFFECT AS OF CLOSE OF YEAR.

       (a) In General.--Section 401(b) is amended--
       (1) by striking ``Retroactive Changes in Plan.--A stock 
     bonus'' and inserting ``Plan Amendments.--
       ``(1) Certain retroactive changes in plan.--A stock 
     bonus'', and
       (2) by adding at the end the following new paragraph:
       ``(2) Adoption of plan.--If an employer adopts a stock 
     bonus, pension, profit-sharing, or annuity plan after the 
     close of a taxable year but before the time prescribed by law 
     for filing the employer's return of tax for the taxable year 
     (including extensions thereof), the employer may elect to 
     treat the plan as having been adopted as of the last day of 
     the taxable year.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to plans adopted for taxable years beginning 
     after December 31, 2018.

     SEC. 222. MODIFICATION OF NONDISCRIMINATION RULES TO PROTECT 
                   OLDER, LONGER SERVICE PARTICIPANTS.

       (a) In General.--Section 401 is amended--
       (1) by redesignating subsection (o) as subsection (p), and
       (2) by inserting after subsection (n) the following new 
     subsection:
       ``(o) Special Rules for Applying Nondiscrimination Rules to 
     Protect Older, Longer Service and Grandfathered 
     Participants.--
       ``(1) Testing of defined benefit plans with closed classes 
     of participants.--
       ``(A) Benefits, rights, or features provided to closed 
     classes.--A defined benefit plan which provides benefits, 
     rights, or features to a closed class of participants shall 
     not fail to satisfy the requirements of subsection (a)(4) by 
     reason of the composition of such closed class or the 
     benefits, rights, or features provided to such closed class, 
     if--
       ``(i) for the plan year as of which the class closes and 
     the 2 succeeding plan years, such benefits, rights, and 
     features satisfy the requirements of subsection (a)(4) 
     (without regard to this subparagraph but taking into account 
     the rules of subparagraph (I)),
       ``(ii) after the date as of which the class was closed, any 
     plan amendment which modifies the closed class or the 
     benefits, rights, and features provided to such closed class 
     does not discriminate significantly in favor of highly 
     compensated employees, and
       ``(iii) the class was closed before April 5, 2017, or the 
     plan is described in subparagraph (C).
       ``(B) Aggregate testing with defined contribution plans 
     permitted on a benefits basis.--
       ``(i) In general.--For purposes of determining compliance 
     with subsection (a)(4) and section 410(b), a defined benefit 
     plan described in clause (iii) may be aggregated and tested 
     on a benefits basis with 1 or more defined contribution 
     plans, including with the portion of 1 or more defined 
     contribution plans which--

       ``(I) provides matching contributions (as defined in 
     subsection (m)(4)(A)),
       ``(II) provides annuity contracts described in section 
     403(b) which are purchased with matching contributions or 
     nonelective contributions, or
       ``(III) consists of an employee stock ownership plan 
     (within the meaning of section 4975(e)(7)) or a tax credit 
     employee stock ownership plan (within the meaning of section 
     409(a)).

       ``(ii) Special rules for matching contributions.--For 
     purposes of clause (i), if a defined benefit plan is 
     aggregated with a portion of a defined contribution plan 
     providing matching contributions--

       ``(I) such defined benefit plan must also be aggregated 
     with any portion of such defined contribution plan which 
     provides elective deferrals described in subparagraph (A) or 
     (C) of section 402(g)(3), and
       ``(II) such matching contributions shall be treated in the 
     same manner as nonelective contributions, including for 
     purposes of applying the rules of subsection (l).

       ``(iii) Plans described.--A defined benefit plan is 
     described in this clause if--

       ``(I) the plan provides benefits to a closed class of 
     participants,
       ``(II) for the plan year as of which the class closes and 
     the 2 succeeding plan years, the plan satisfies the 
     requirements of section 410(b) and subsection (a)(4) (without 
     regard to this subparagraph but taking into account the rules 
     of subparagraph (I)),
       ``(III) after the date as of which the class was closed, 
     any plan amendment which modifies the closed class or the 
     benefits provided to such closed class does not discriminate 
     significantly in favor of highly compensated employees, and
       ``(IV) the class was closed before April 5, 2017, or the 
     plan is described in subparagraph (C).

       ``(C) Plans described.--A plan is described in this 
     subparagraph if, taking into account any predecessor plan--
       ``(i) such plan has been in effect for at least 5 years as 
     of the date the class is closed, and
       ``(ii) during the 5-year period preceding the date the 
     class is closed, there has not been a substantial increase in 
     the coverage or value of the benefits, rights, or features 
     described in subparagraph (A) or in the coverage or benefits 
     under the plan described in subparagraph (B)(iii) (whichever 
     is applicable).
       ``(D) Determination of substantial increase for benefits, 
     rights, and features.--In applying subparagraph (C)(ii) for 
     purposes of subparagraph (A)(iii), a plan shall be treated as 
     having had a substantial increase in coverage or value of the 
     benefits, rights, or features described in subparagraph (A) 
     during the applicable 5-year period only if, during such 
     period--
       ``(i) the number of participants covered by such benefits, 
     rights, or features on the date such period ends is more than 
     50 percent greater than the number of such participants on 
     the first day of the plan year in which such period began, or
       ``(ii) such benefits, rights, and features have been 
     modified by 1 or more plan amendments in such a way that, as 
     of the date the class is closed, the value of such benefits, 
     rights, and features to the closed class as a whole is 
     substantially greater than the value as of the first day of 
     such 5-year period, solely as a result of such amendments.
       ``(E) Determination of substantial increase for aggregate 
     testing on benefits basis.--In applying subparagraph (C)(ii) 
     for purposes of subparagraph (B)(iii)(IV), a plan shall be 
     treated as having had a substantial increase in coverage or 
     benefits during the applicable 5-year period only if, during 
     such period--
       ``(i) the number of participants benefitting under the plan 
     on the date such period ends is more than 50 percent greater 
     than the number of such participants on the first day of the 
     plan year in which such period began, or
       ``(ii) the average benefit provided to such participants on 
     the date such period ends is more than 50 percent greater 
     than the average benefit provided on the first day of the 
     plan year in which such period began.
       ``(F) Certain employees disregarded.--For purposes of 
     subparagraphs (D) and (E), any increase in coverage or value 
     or in coverage or benefits, whichever is applicable, which is 
     attributable to such coverage and value or coverage and 
     benefits provided to employees--
       ``(i) who became participants as a result of a merger, 
     acquisition, or similar event which occurred during the 7-
     year period preceding the date the class is closed, or
       ``(ii) who became participants by reason of a merger of the 
     plan with another plan which had been in effect for at least 
     5 years as of the date of the merger,

     shall be disregarded, except that clause (ii) shall apply for 
     purposes of subparagraph (D) only if, under the merger, the 
     benefits, rights, or features under 1 plan are conformed to 
     the benefits, rights, or features of the other plan 
     prospectively.

[[Page H10454]]

       ``(G) Rules relating to average benefit.--For purposes of 
     subparagraph (E)--
       ``(i) the average benefit provided to participants under 
     the plan will be treated as having remained the same between 
     the 2 dates described in subparagraph (E)(ii) if the benefit 
     formula applicable to such participants has not changed 
     between such dates, and
       ``(ii) if the benefit formula applicable to 1 or more 
     participants under the plan has changed between such 2 dates, 
     then the average benefit under the plan shall be considered 
     to have increased by more than 50 percent only if--

       ``(I) the total amount determined under section 
     430(b)(1)(A)(i) for all participants benefitting under the 
     plan for the plan year in which the 5-year period described 
     in subparagraph (E) ends, exceeds
       ``(II) the total amount determined under section 
     430(b)(1)(A)(i) for all such participants for such plan year, 
     by using the benefit formula in effect for each such 
     participant for the first plan year in such 5-year period, by 
     more than 50 percent.

     In the case of a CSEC plan (as defined in section 414(y)), 
     the normal cost of the plan (as determined under section 
     433(j)(1)(B)) shall be used in lieu of the amount determined 
     under section 430(b)(1)(A)(i).
       ``(H) Treatment as single plan.--For purposes of 
     subparagraphs (E) and (G), a plan described in section 413(c) 
     shall be treated as a single plan rather than as separate 
     plans maintained by each employer in the plan.
       ``(I) Special rules.--For purposes of subparagraphs (A)(i) 
     and (B)(iii)(II), the following rules shall apply:
       ``(i) In applying section 410(b)(6)(C), the closing of the 
     class of participants shall not be treated as a significant 
     change in coverage under section 410(b)(6)(C)(i)(II).
       ``(ii) 2 or more plans shall not fail to be eligible to be 
     aggregated and treated as a single plan solely by reason of 
     having different plan years.
       ``(iii) Changes in the employee population shall be 
     disregarded to the extent attributable to individuals who 
     become employees or cease to be employees, after the date the 
     class is closed, by reason of a merger, acquisition, 
     divestiture, or similar event.
       ``(iv) Aggregation and all other testing methodologies 
     otherwise applicable under subsection (a)(4) and section 
     410(b) may be taken into account.

     The rule of clause (ii) shall also apply for purposes of 
     determining whether plans to which subparagraph (B)(i) 
     applies may be aggregated and treated as 1 plan for purposes 
     of determining whether such plans meet the requirements of 
     subsection (a)(4) and section 410(b).
       ``(J) Spun-off plans.--For purposes of this paragraph, if a 
     portion of a defined benefit plan described in subparagraph 
     (A) or (B)(iii) is spun off to another employer and the spun-
     off plan continues to satisfy the requirements of--
       ``(i) subparagraph (A)(i) or (B)(iii)(II), whichever is 
     applicable, if the original plan was still within the 3-year 
     period described in such subparagraph at the time of the spin 
     off, and
       ``(ii) subparagraph (A)(ii) or (B)(iii)(III), whichever is 
     applicable,

     the treatment under subparagraph (A) or (B) of the spun-off 
     plan shall continue with respect to such other employer.
       ``(2) Testing of defined contribution plans.--
       ``(A) Testing on a benefits basis.--A defined contribution 
     plan shall be permitted to be tested on a benefits basis if--
       ``(i) such defined contribution plan provides make-whole 
     contributions to a closed class of participants whose 
     accruals under a defined benefit plan have been reduced or 
     eliminated,
       ``(ii) for the plan year of the defined contribution plan 
     as of which the class eligible to receive such make-whole 
     contributions closes and the 2 succeeding plan years, such 
     closed class of participants satisfies the requirements of 
     section 410(b)(2)(A)(i) (determined by applying the rules of 
     paragraph (1)(I)),
       ``(iii) after the date as of which the class was closed, 
     any plan amendment to the defined contribution plan which 
     modifies the closed class or the allocations, benefits, 
     rights, and features provided to such closed class does not 
     discriminate significantly in favor of highly compensated 
     employees, and
       ``(iv) the class was closed before April 5, 2017, or the 
     defined benefit plan under clause (i) is described in 
     paragraph (1)(C) (as applied for purposes of paragraph 
     (1)(B)(iii)(IV)).
       ``(B) Aggregation with plans including matching 
     contributions.--
       ``(i) In general.--With respect to 1 or more defined 
     contribution plans described in subparagraph (A), for 
     purposes of determining compliance with subsection (a)(4) and 
     section 410(b), the portion of such plans which provides 
     make-whole contributions or other nonelective contributions 
     may be aggregated and tested on a benefits basis with the 
     portion of 1 or more other defined contribution plans which--

       ``(I) provides matching contributions (as defined in 
     subsection (m)(4)(A)),
       ``(II) provides annuity contracts described in section 
     403(b) which are purchased with matching contributions or 
     nonelective contributions, or
       ``(III) consists of an employee stock ownership plan 
     (within the meaning of section 4975(e)(7)) or a tax credit 
     employee stock ownership plan (within the meaning of section 
     409(a)).

       ``(ii) Special rules for matching contributions.--Rules 
     similar to the rules of paragraph (1)(B)(ii) shall apply for 
     purposes of clause (i).
       ``(C) Special rules for testing defined contribution plan 
     features providing matching contributions to certain older, 
     longer service participants.--In the case of a defined 
     contribution plan which provides benefits, rights, or 
     features to a closed class of participants whose accruals 
     under a defined benefit plan have been reduced or eliminated, 
     the plan shall not fail to satisfy the requirements of 
     subsection (a)(4) solely by reason of the composition of the 
     closed class or the benefits, rights, or features provided to 
     such closed class if the defined contribution plan and 
     defined benefit plan otherwise meet the requirements of 
     subparagraph (A) but for the fact that the make-whole 
     contributions under the defined contribution plan are made in 
     whole or in part through matching contributions.
       ``(D) Spun-off plans.--For purposes of this paragraph, if a 
     portion of a defined contribution plan described in 
     subparagraph (A) or (C) is spun off to another employer, the 
     treatment under subparagraph (A) or (C) of the spun-off plan 
     shall continue with respect to the other employer if such 
     plan continues to comply with the requirements of clauses 
     (ii) (if the original plan was still within the 3-year period 
     described in such clause at the time of the spin off) and 
     (iii) of subparagraph (A), as determined for purposes of 
     subparagraph (A) or (C), whichever is applicable.
       ``(3) Definitions.--For purposes of this subsection--
       ``(A) Make-whole contributions.--Except as otherwise 
     provided in paragraph (2)(C), the term `make-whole 
     contributions' means nonelective allocations for each 
     employee in the class which are reasonably calculated, in a 
     consistent manner, to replace some or all of the retirement 
     benefits which the employee would have received under the 
     defined benefit plan and any other plan or qualified cash or 
     deferred arrangement under subsection (k)(2) if no change had 
     been made to such defined benefit plan and such other plan or 
     arrangement. For purposes of the preceding sentence, 
     consistency shall not be required with respect to employees 
     who were subject to different benefit formulas under the 
     defined benefit plan.
       ``(B) References to closed class of participants.--
     References to a closed class of participants and similar 
     references to a closed class shall include arrangements under 
     which 1 or more classes of participants are closed, except 
     that 1 or more classes of participants closed on different 
     dates shall not be aggregated for purposes of determining the 
     date any such class was closed.
       ``(C) Highly compensated employee.--The term `highly 
     compensated employee' has the meaning given such term in 
     section 414(q).''.
       (b) Participation Requirements.--Section 401(a)(26) is 
     amended by adding at the end the following new subparagraph:
       ``(I) Protected participants.--
       ``(i) In general.--A plan shall be deemed to satisfy the 
     requirements of subparagraph (A) if--

       ``(I) the plan is amended--

       ``(aa) to cease all benefit accruals, or
       ``(bb) to provide future benefit accruals only to a closed 
     class of participants,

       ``(II) the plan satisfies subparagraph (A) (without regard 
     to this subparagraph) as of the effective date of the 
     amendment, and
       ``(III) the amendment was adopted before April 5, 2017, or 
     the plan is described in clause (ii).

       ``(ii) Plans described.--A plan is described in this clause 
     if the plan would be described in subsection (o)(1)(C), as 
     applied for purposes of subsection (o)(1)(B)(iii)(IV) and by 
     treating the effective date of the amendment as the date the 
     class was closed for purposes of subsection (o)(1)(C).
       ``(iii) Special rules.--For purposes of clause (i)(II), in 
     applying section 410(b)(6)(C), the amendments described in 
     clause (i) shall not be treated as a significant change in 
     coverage under section 410(b)(6)(C)(i)(II).
       ``(iv) Spun-off plans.--For purposes of this subparagraph, 
     if a portion of a plan described in clause (i) is spun off to 
     another employer, the treatment under clause (i) of the spun-
     off plan shall continue with respect to the other 
     employer.''.
       (c) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall take effect on the date 
     of the enactment of this Act, without regard to whether any 
     plan modifications referred to in such amendments are adopted 
     or effective before, on, or after such date of enactment.
       (2) Special rules.--
       (A) Election of earlier application.--At the election of 
     the plan sponsor, the amendments made by this section shall 
     apply to plan years beginning after December 31, 2013.
       (B) Closed classes of participants.--For purposes of 
     paragraphs (1)(A)(iii), (1)(B)(iii)(IV), and (2)(A)(iv) of 
     section 401(o) of the Internal Revenue Code of 1986 (as added 
     by this section), a closed class of participants shall be 
     treated as being closed before April 5, 2017, if the plan 
     sponsor's intention to create such closed class is reflected 
     in formal written documents and communicated to participants 
     before such date.
       (C) Certain post-enactment plan amendments.--A plan shall 
     not be treated as failing to be eligible for the application 
     of section 401(o)(1)(A), 401(o)(1)(B)(iii), or 401(a)(26) of 
     such Code (as added by this section) to such plan solely 
     because in the case of--
       (i) such section 401(o)(1)(A), the plan was amended before 
     the date of the enactment of this Act to eliminate 1 or more 
     benefits, rights, or features, and is further amended after 
     such date of enactment to provide such previously eliminated 
     benefits, rights, or features to a closed class of 
     participants, or
       (ii) such section 401(o)(1)(B)(iii) or section 401(a)(26), 
     the plan was amended before the date of the enactment of this 
     Act to cease all benefit accruals, and is further amended 
     after such date of enactment to provide benefit accruals to a 
     closed class of participants. Any such section shall only 
     apply if the plan otherwise

[[Page H10455]]

     meets the requirements of such section and in applying such 
     section, the date the class of participants is closed shall 
     be the effective date of the later amendment.

     SEC. 223. FIDUCIARY SAFE HARBOR FOR SELECTION OF LIFETIME 
                   INCOME PROVIDER.

       Section 404 of the Employee Retirement Income Security Act 
     of 1974 (29 U.S.C. 1104) is amended by adding at the end the 
     following:
       ``(e) Safe Harbor for Annuity Selection.--
       ``(1) In general.--With respect to the selection of an 
     insurer for a guaranteed retirement income contract, the 
     requirements of subsection (a)(1)(B) will be deemed to be 
     satisfied if a fiduciary--
       ``(A) engages in an objective, thorough, and analytical 
     search for the purpose of identifying insurers from which to 
     purchase such contracts;
       ``(B) with respect to each insurer identified under 
     subparagraph (A)--
       ``(i) considers the financial capability of such insurer to 
     satisfy its obligations under the guaranteed retirement 
     income contract; and
       ``(ii) considers the cost (including fees and commissions) 
     of the guaranteed retirement income contract offered by the 
     insurer in relation to the benefits and product features of 
     the contract and administrative services to be provided under 
     such contract; and
       ``(C) on the basis of such consideration, concludes that--
       ``(i) at the time of the selection, the insurer is 
     financially capable of satisfying its obligations under the 
     guaranteed retirement income contract; and
       ``(ii) the relative cost of the selected guaranteed 
     retirement income contract as described in subparagraph 
     (B)(ii) is reasonable.
       ``(2) Financial capability of the insurer.--A fiduciary 
     will be deemed to satisfy the requirements of paragraphs 
     (1)(B)(i) and (1)(C)(i) if--
       ``(A) the fiduciary obtains written representations from 
     the insurer that--
       ``(i) the insurer is licensed to offer guaranteed 
     retirement income contracts;
       ``(ii) the insurer, at the time of selection and for each 
     of the immediately preceding 7 plan years--

       ``(I) operates under a certificate of authority from the 
     insurance commissioner of its domiciliary State which has not 
     been revoked or suspended;
       ``(II) has filed audited financial statements in accordance 
     with the laws of its domiciliary State under applicable 
     statutory accounting principles;
       ``(III) maintains (and has maintained) reserves which 
     satisfies all the statutory requirements of all States where 
     the insurer does business; and
       ``(IV) is not operating under an order of supervision, 
     rehabilitation, or liquidation;

       ``(iii) the insurer undergoes, at least every 5 years, a 
     financial examination (within the meaning of the law of its 
     domiciliary State) by the insurance commissioner of the 
     domiciliary State (or representative, designee, or other 
     party approved by such commissioner); and
       ``(iv) the insurer will notify the fiduciary of any change 
     in circumstances occurring after the provision of the 
     representations in clauses (i), (ii), and (iii) which would 
     preclude the insurer from making such representations at the 
     time of issuance of the guaranteed retirement income 
     contract; and
       ``(B) after receiving such representations and as of the 
     time of selection, the fiduciary has not received any notice 
     described in subparagraph (A)(iv) and is in possession of no 
     other information which would cause the fiduciary to question 
     the representations provided.
       ``(3) No requirement to select lowest cost.--Nothing in 
     this subsection shall be construed to require a fiduciary to 
     select the lowest cost contract. A fiduciary may consider the 
     value of a contract, including features and benefits of the 
     contract and attributes of the insurer (including, without 
     limitation, the insurer's financial strength) in conjunction 
     with the cost of the contract.
       ``(4) Time of selection.--
       ``(A) In general.--For purposes of this subsection, the 
     time of selection is--
       ``(i) the time that the insurer and the contract are 
     selected for distribution of benefits to a specific 
     participant or beneficiary; or
       ``(ii) if the fiduciary periodically reviews the continuing 
     appropriateness of the conclusion described in paragraph 
     (1)(C) with respect to a selected insurer, taking into 
     account the considerations described in such paragraph, the 
     time that the insurer and the contract are selected to 
     provide benefits at future dates to participants or 
     beneficiaries under the plan.

     Nothing in the preceding sentence shall be construed to 
     require the fiduciary to review the appropriateness of a 
     selection after the purchase of a contract for a participant 
     or beneficiary.
       ``(B) Periodic review.--A fiduciary will be deemed to have 
     conducted the periodic review described in subparagraph 
     (A)(ii) if the fiduciary obtains the written representations 
     described in clauses (i), (ii), and (iii) of paragraph (2)(A) 
     from the insurer on an annual basis, unless the fiduciary 
     receives any notice described in paragraph (2)(A)(iv) or 
     otherwise becomes aware of facts that would cause the 
     fiduciary to question such representations.
       ``(5) Limited liability.--A fiduciary which satisfies the 
     requirements of this subsection shall not be liable following 
     the distribution of any benefit, or the investment by or on 
     behalf of a participant or beneficiary pursuant to the 
     selected guaranteed retirement income contract, for any 
     losses that may result to the participant or beneficiary due 
     to an insurer's inability to satisfy its financial 
     obligations under the terms of such contract.
       ``(6) Definitions.--For purposes of this subsection--
       ``(A) Insurer.--The term `insurer' means an insurance 
     company, insurance service, or insurance organization, 
     including affiliates of such companies.
       ``(B) Guaranteed retirement income contract.--The term 
     `guaranteed retirement income contract' means an annuity 
     contract for a fixed term or a contract (or provision or 
     feature thereof) which provides guaranteed benefits annually 
     (or more frequently) for at least the remainder of the life 
     of the participant or the joint lives of the participant and 
     the participant's designated beneficiary as part of an 
     individual account plan.''.

     SEC. 224. DISCLOSURE REGARDING LIFETIME INCOME.

       (a) In General.--Subparagraph (B) of section 105(a)(2) of 
     the Employee Retirement Income Security Act of 1974 (29 
     U.S.C. 1025(a)(2)) is amended--
       (1) in clause (i), by striking ``and'' at the end;
       (2) in clause (ii), by striking ``diversification.'' and 
     inserting ``diversification, and''; and
       (3) by inserting at the end the following:
       ``(iii) the lifetime income disclosure described in 
     subparagraph (D)(i).

     In the case of pension benefit statements described in clause 
     (i) of paragraph (1)(A), a lifetime income disclosure under 
     clause (iii) of this subparagraph shall be required to be 
     included in only one pension benefit statement during any one 
     12-month period.''.
       (b) Lifetime Income.--Paragraph (2) of section 105(a) of 
     the Employee Retirement Income Security Act of 1974 (29 
     U.S.C. 1025(a)) is amended by adding at the end the following 
     new subparagraph:
       ``(D) Lifetime income disclosure.--
       ``(i) In general.--

       ``(I) Disclosure.--A lifetime income disclosure shall set 
     forth the lifetime income stream equivalent of the total 
     benefits accrued with respect to the participant or 
     beneficiary.
       ``(II) Lifetime income stream equivalent of the total 
     benefits accrued.--For purposes of this subparagraph, the 
     term `lifetime income stream equivalent of the total benefits 
     accrued' means the amount of monthly payments the participant 
     or beneficiary would receive if the total accrued benefits of 
     such participant or beneficiary were used to provide lifetime 
     income streams described in subclause (III), based on 
     assumptions specified in rules prescribed by the Secretary.
       ``(III) Lifetime income streams.--The lifetime income 
     streams described in this subclause are a qualified joint and 
     survivor annuity (as defined in section 205(d)), based on 
     assumptions specified in rules prescribed by the Secretary, 
     including the assumption that the participant or beneficiary 
     has a spouse of equal age, and a single life annuity. Such 
     lifetime income streams may have a term certain or other 
     features to the extent permitted under rules prescribed by 
     the Secretary.

       ``(ii) Model disclosure.--Not later than 1 year after the 
     date of the enactment of the Retirement, Savings, and Other 
     Tax Relief Act of 2018, the Secretary shall issue a model 
     lifetime income disclosure, written in a manner so as to be 
     understood by the average plan participant, which--

       ``(I) explains that the lifetime income stream equivalent 
     is only provided as an illustration;
       ``(II) explains that the actual payments under the lifetime 
     income stream described in clause (i)(III) which may be 
     purchased with the total benefits accrued will depend on 
     numerous factors and may vary substantially from the lifetime 
     income stream equivalent in the disclosures;
       ``(III) explains the assumptions upon which the lifetime 
     income stream equivalent was determined; and
       ``(IV) provides such other similar explanations as the 
     Secretary considers appropriate.

       ``(iii) Assumptions and rules.--Not later than 1 year after 
     the date of the enactment of the Retirement, Savings, and 
     Other Tax Relief Act of 2018, the Secretary shall--

       ``(I) prescribe assumptions which administrators of 
     individual account plans may use in converting total accrued 
     benefits into lifetime income stream equivalents for purposes 
     of this subparagraph; and
       ``(II) issue interim final rules under clause (i).

     `In prescribing assumptions under subclause (I), the 
     Secretary may prescribe a single set of specific assumptions 
     (in which case the Secretary may issue tables or factors 
     which facilitate such conversions), or ranges of permissible 
     assumptions. To the extent that an accrued benefit is or may 
     be invested in a lifetime income stream described in clause 
     (i)(III), the assumptions prescribed under subclause (I) 
     shall, to the extent appropriate, permit administrators of 
     individual account plans to use the amounts payable under 
     such lifetime income stream as a lifetime income stream 
     equivalent.
       ``(iv) Limitation on liability.--No plan fiduciary, plan 
     sponsor, or other person shall have any liability under this 
     title solely by reason of the provision of lifetime income 
     stream equivalents which are derived in accordance with the 
     assumptions and rules described in clause (iii) and which 
     include the explanations contained in the model lifetime 
     income disclosure described in clause (ii). This clause shall 
     apply without regard to whether the provision of such 
     lifetime income stream equivalent is required by subparagraph 
     (B)(iii).
       ``(v) Effective date.--The requirement in subparagraph 
     (B)(iii) shall apply to pension benefit statements furnished 
     more than 12 months after the latest of the issuance by the 
     Secretary of--

       ``(I) interim final rules under clause (i);
       ``(II) the model disclosure under clause (ii); or
       ``(III) the assumptions under clause (iii).''.

     SEC. 225. MODIFICATION OF PBGC PREMIUMS FOR CSEC PLANS.

       (a) Flat Rate Premium.--Subparagraph (A) of section 
     4006(a)(3) of the Employee Retirement

[[Page H10456]]

     Income Security Act of 1974 (29 U.S.C. 1306(a)(3)) is 
     amended--
       (1) in clause (i), by striking ``plan,'' and inserting 
     ``plan other than a CSEC plan (as defined in section 
     210(f)(1))'';
       (2) in clause (v), by striking ``or'' at the end;
       (3) in clause (vi), by striking the period at the end and 
     inserting ``, or''; and
       (4) by adding at the end the following new clause:
       ``(vii) in the case of a CSEC plan (as defined in section 
     210(f)(1)), for plan years beginning after December 31, 2018, 
     for each individual who is a participant in such plan during 
     the plan year an amount equal to the sum of--

       ``(I) the additional premium (if any) determined under 
     subparagraph (E), and
       ``(II) $19.''.

       (b) Variable Rate Premium.--
       (1) Unfunded vested benefits.--
       (A) In general.--Subparagraph (E) of section 4006(a)(3) of 
     the Employee Retirement Income Security Act of 1974 (29 
     U.S.C. 1306(a)(3)) is amended by adding at the end the 
     following new clause:
       ``(v) For purposes of clause (ii), in the case of a CSEC 
     plan (as defined in section 210(f)(1)), the term `unfunded 
     vested benefits' means, for plan years beginning after 
     December 31, 2018, the excess (if any) of--

       ``(I) the funding liability of the plan as determined under 
     section 306(j)(5)(C) for the plan year by only taking into 
     account vested benefits, over
       ``(II) the fair market value of plan assets for the plan 
     year which are held by the plan on the valuation date.''.

       (B) Conforming amendment.--Clause (iii) of section 
     4006(a)(3)(E) of such Act (29 U.S.C. 1306(a)(3)(E)) is 
     amended by striking ``For purposes'' and inserting ``Except 
     as provided in clause (v), for purposes''.
       (2) Applicable dollar amount.--
       (A) In general.--Paragraph (8) of section 4006(a) of such 
     Act (29 U.S.C. 1306(a)) is amended by adding at the end the 
     following new subparagraph:
       ``(E) CSEC plans.--In the case of a CSEC plan (as defined 
     in section 210(f)(1)), the applicable dollar amount shall be 
     $9.''.
       (B) Conforming amendment.--Subparagraph (A) of section 
     4006(a)(8) of such Act (29 U.S.C. 1306(a)(8)) is amended by 
     striking ``(B) and (C)'' and inserting ``(B), (C), and (E)''.

                  Subtitle C--Other Savings Provisions

     SEC. 231. EXPANSION OF SECTION 529 PLANS.

       (a) Distributions for Certain Expenses Associated With 
     Registered Apprenticeship Programs.--Section 529(c) of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new paragraph:
       ``(8) Treatment of certain expenses associated with 
     registered apprenticeship programs.--Any reference in this 
     subsection to the term `qualified higher education expense' 
     shall include a reference to expenses for fees, books, 
     supplies, and equipment required for the participation of a 
     designated beneficiary in an apprenticeship program 
     registered and certified with the Secretary of Labor under 
     section 1 of the National Apprenticeship Act (29 U.S.C. 
     50).''.
       (b) Distributions for Certain Homeschooling Expenses.--
     Section 529(c)(7) of such Code is amended by striking 
     ``include a reference to'' and all that follows and inserting 
     ``include a reference to--
       ``(A) expenses for tuition in connection with enrollment or 
     attendance of a designated beneficiary at an elementary or 
     secondary public, private, or religious school, and
       ``(B) expenses, with respect to a designated beneficiary, 
     for--
       ``(i) curriculum and curricular materials,
       ``(ii) books or other instructional materials,
       ``(iii) online educational materials,
       ``(iv) tuition for tutoring or educational classes outside 
     of the home (but only if the tutor or class instructor is not 
     related (within the meaning of section 152(d)(2)) to the 
     student),
       ``(v) dual enrollment in an institution of higher 
     education, and
       ``(vi) educational therapies for students with 
     disabilities,
     in connection with a homeschool (whether treated as a 
     homeschool or a private school for purposes of applicable 
     State law).''.
       (c) Distributions for Qualified Education Loan 
     Repayments.--
       (1) In general.--Section 529(c) of such Code, as amended by 
     subsection (a), is amended by adding at the end the following 
     new paragraph:
       ``(9) Treatment of qualified education loan repayments.--
       ``(A) In general.--Any reference in this subsection to the 
     term `qualified higher education expense' shall include a 
     reference to amounts paid as principal or interest on any 
     qualified education loan (as defined in section 221(d)) of 
     the designated beneficiary or a sibling of the designated 
     beneficiary.
       ``(B) Limitation.--The amount of distributions treated as a 
     qualified higher education expense under this paragraph with 
     respect to the loans of any individual shall not exceed 
     $10,000 (reduced by the amount of distributions so treated 
     for all prior taxable years).
       ``(C) Special rules for siblings of the designated 
     beneficiary.--
       ``(i) Separate accounting.--For purposes of subparagraph 
     (B) and subsection (d), amounts treated as a qualified higher 
     education expense with respect to the loans of a sibling of 
     the designated beneficiary shall be taken into account with 
     respect to such sibling and not with respect to such 
     designated beneficiary.
       ``(ii) Sibling defined.--For purposes of this paragraph, 
     the term `sibling' means an individual who bears a 
     relationship to the designated beneficiary which is described 
     in section 152(d)(2)(B).''.
       (2) Coordination with deduction for student loan 
     interest.--Section 221(e)(1) of such Code is amended by 
     adding at the end the following: ``The deduction otherwise 
     allowable under subsection (a) (prior to the application of 
     subsection (b)) to the taxpayer for any taxable year shall be 
     reduced (but not below zero) by so much of the distributions 
     treated as a qualified higher education expense under section 
     529(c)(9) with respect to loans of the taxpayer as would be 
     includible in gross income under section 529(c)(3)(A) for 
     such taxable year but for such treatment.''.
       (d) Distributions for Certain Elementary and Secondary 
     School Expenses in Addition to Tuition.--Section 
     529(c)(7)(A), as amended by subsection (b), is amended to 
     read as follows:
       ``(A) expenses described in section 530(b)(3)(A)(i) in 
     connection with enrollment or attendance of a designated 
     beneficiary at an elementary or secondary public, private, or 
     religious school, and''.
       (e) Unborn Children Allowed as Account Beneficiaries.--
     Section 529(e) is amended by adding at the end the following 
     new paragraph:
       ``(6) Treatment of unborn children.--
       ``(A) In general.--Nothing shall prevent an unborn child 
     from being treated as a designated beneficiary or an 
     individual under this section.
       ``(B) Unborn child.--For purposes of this paragraph--
       ``(i) In general.--The term `unborn child' means a child in 
     utero.
       ``(ii) Child in utero.--The term `child in utero' means a 
     member of the species homo sapiens, at any stage of 
     development, who is carried in the womb.''.
       (f) Effective Dates.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendments made by this section shall apply 
     to distributions made after December 31, 2018.
       (2) Unborn children allowed as account beneficiaries.--The 
     amendment made by subsection (e) shall apply to contributions 
     made after December 31, 2018.

     SEC. 232. PENALTY-FREE WITHDRAWALS FROM RETIREMENT PLANS FOR 
                   INDIVIDUALS IN CASE OF BIRTH OF CHILD OR 
                   ADOPTION.

       (a) In General.--Section 72(t)(2) is amended by adding at 
     the end the following new subparagraph:
       ``(H) Distributions from retirement plans in case of birth 
     of child or adoption.--
       ``(i) In general.--Any qualified birth or adoption 
     distribution.
       ``(ii) Limitation.--The aggregate amount which may be 
     treated as qualified birth or adoption distributions by any 
     individual with respect to any birth or adoption shall not 
     exceed $7,500.
       ``(iii) Qualified birth or adoption distribution.--For 
     purposes of this subparagraph--

       ``(I) In general.--The term `qualified birth or adoption 
     distribution' means any distribution from an applicable 
     eligible retirement plan to an individual if made during the 
     1-year period beginning on the date on which a child of the 
     individual is born or on which the legal adoption by the 
     individual of an eligible child is finalized.
       ``(II) Eligible child.--The term `eligible child' means any 
     individual (other than a child of the taxpayer's spouse) who 
     has not attained age 18 or is physically or mentally 
     incapable of self-support.

       ``(iv) Treatment of plan distributions.--

       ``(I) In general.--If a distribution to an individual would 
     (without regard to clause (ii)) be a qualified birth or 
     adoption distribution, a plan shall not be treated as failing 
     to meet any requirement of this title merely because the plan 
     treats the distribution as a qualified birth or adoption 
     distribution, unless the aggregate amount of such 
     distributions from all plans maintained by the employer (and 
     any member of any controlled group which includes the 
     employer) to such individual exceeds $7,500.
       ``(II) Controlled group.--For purposes of subclause (I), 
     the term `controlled group' means any group treated as a 
     single employer under subsection (b), (c), (m), or (o) of 
     section 414.

       ``(v) Amount distributed may be repaid.--

       ``(I) In general.--Any individual who receives a qualified 
     birth or adoption distribution may make one or more 
     contributions in an aggregate amount not to exceed the amount 
     of such distribution to an applicable eligible retirement 
     plan of which such individual is a beneficiary and to which a 
     rollover contribution of such distribution could be made 
     under section 402(c), 403(a)(4), 403(b)(8), 408(d)(3), or 
     457(e)(16), as the case may be.
       ``(II) Limitation on contributions to applicable eligible 
     retirement plans other than IRAs.--The aggregate amount of 
     contributions made by an individual under subclause (I) to 
     any applicable eligible retirement plan which is not an 
     individual retirement plan shall not exceed the aggregate 
     amount of qualified birth or adoption distributions which are 
     made from such plan to such individual. Subclause (I) shall 
     not apply to contributions to any applicable eligible 
     retirement plan which is not an individual retirement plan 
     unless the individual is eligible to make contributions 
     (other than those described in subclause (I)) to such 
     applicable eligible retirement plan.
       ``(III) Treatment of repayments of distributions from 
     applicable eligible retirement plans other than IRAs.--If a 
     contribution is made under subclause (I) with respect to a 
     qualified birth or adoption distribution from an applicable 
     eligible retirement plan other than an individual retirement 
     plan, then the taxpayer shall, to the extent of the amount of 
     the contribution, be treated as having received such 
     distribution in an eligible rollover distribution (as defined 
     in section 402(c)(4)) and as having transferred the amount to 
     the applicable eligible retirement plan in a direct trustee 
     to trustee transfer within 60 days of the distribution.
       ``(IV) Treatment of repayments for distributions from 
     iras.--If a contribution is

[[Page H10457]]

     made under subclause (I) with respect to a qualified birth or 
     adoption distribution from an individual retirement plan, 
     then, to the extent of the amount of the contribution, such 
     distribution shall be treated as a distribution described in 
     section 408(d)(3) and as having been transferred to the 
     applicable eligible retirement plan in a direct trustee to 
     trustee transfer within 60 days of the distribution.

       ``(vi) Definition and special rules.--For purposes of this 
     subparagraph--

       ``(I) Applicable eligible retirement plan.--The term 
     `applicable eligible retirement plan' means an eligible 
     retirement plan (as defined in section 402(c)(8)(B)) other 
     than a defined benefit plan.
       ``(II) Exemption of distributions from trustee to trustee 
     transfer and withholding rules.--For purposes of sections 
     401(a)(31), 402(f), and 3405, a qualified birth or adoption 
     distribution shall not be treated as an eligible rollover 
     distribution.
       ``(III) Taxpayer must include tin.--A distribution shall 
     not be treated as a qualified birth or adoption distribution 
     with respect to any child or eligible child unless the 
     taxpayer includes the name, age, and TIN of such child or 
     eligible child on the taxpayer's return of tax for the 
     taxable year.
       ``(IV) Distributions treated as meeting plan distribution 
     requirements.--Any qualified birth or adoption distribution 
     shall be treated as meeting the requirements of sections 
     401(k)(2)(B)(i), 403(b)(7)(A)(ii), 403(b)(11), and 
     457(d)(1)(A).''.

       (b) Effective Date.--The amendments made by this section 
     shall apply to distributions made after December 31, 2018.

       TITLE III--REPEAL OR DELAY OF CERTAIN HEALTH-RELATED TAXES

     SEC. 301. EXTENSION OF MORATORIUM ON MEDICAL DEVICE EXCISE 
                   TAX.

       Section 4191(c) of the Internal Revenue Code of 1986 is 
     amended by striking ``December 31, 2019'' and inserting 
     ``December 31, 2024''.

     SEC. 302. DELAY IN IMPLEMENTATION OF EXCISE TAX ON HIGH COST 
                   EMPLOYER-SPONSORED HEALTH COVERAGE.

       Section 9001(c) of the Patient Protection and Affordable 
     Care Act is amended by striking ``December 31, 2021'' and 
     inserting ``December 31, 2022''.

     SEC. 303. EXTENSION OF SUSPENSION OF ANNUAL FEE ON HEALTH 
                   INSURANCE PROVIDERS.

       Section 9010(j)(3) of the Patient Protection and Affordable 
     Care Act is amended by striking ``December 31, 2019'' and 
     inserting ``December 31, 2021''.

     SEC. 304. REPEAL OF EXCISE TAX ON INDOOR TANNING SERVICES.

       (a) In General.--Subtitle D of the Internal Revenue Code of 
     1986 is amended by striking chapter 49 and by striking the 
     item relating to such chapter in the table of chapters of 
     such subtitle.
       (b) Effective Date.--The amendments made by this section 
     shall apply to services performed in calendar quarters 
     beginning more than 30 days after the date of the enactment 
     of this Act.

                 TITLE IV--CERTAIN EXPIRING PROVISIONS

     SEC. 401. RAILROAD TRACK MAINTENANCE CREDIT MADE PERMANENT.

       (a) Credit Percentage Reduced.--Section 45G(a) is amended 
     by striking ``50 percent'' and inserting ``30 percent''.
       (b) Made Permanent.--Section 45G is amended by striking 
     subsection (f).
       (c) Effective Date.--The amendments made by this section 
     shall apply to expenditures paid or incurred during taxable 
     years beginning after December 31, 2017.

     SEC. 402. BIODIESEL AND RENEWABLE DIESEL PROVISIONS EXTENDED 
                   AND PHASED OUT.

       (a) Income Tax Credit.--
       (1) In general.--Section 40A(g) is amended to read as 
     follows:
       ``(g) Phase Out; Termination.--
       ``(1) Phase out.--In the case of any sale or use after 
     December 31, 2021, subsections (b)(1)(A) and (b)(2)(A) shall 
     be applied by substituting for `$1.00'--
       ``(A) `$.75', if such sale or use is before January 1, 
     2023,
       ``(B) `$.50', if such sale or use is after December 31, 
     2022, and before January 1, 2024, and
       ``(C) `$.33', if such sale or use is after December 31, 
     2023, and before January 1, 2025.
       ``(2) Termination.--This section shall not apply to any 
     sale or use after December 31, 2024.''.
       (2) Effective date.--The amendment made by this subsection 
     shall apply to fuel sold or used after December 31, 2017.
       (b) Excise Tax Incentives.--
       (1) Phase out.--Section 6426(c)(2) is amended to read as 
     follows:
       ``(2) Applicable amount.--For purposes of this subsection, 
     the applicable amount is--
       ``(A) $1.00 in the case of any sale or use for any period 
     before January 1, 2022,
       ``(B) $.75 in the case of any sale or use for any period 
     after December 31, 2021, and before January 1, 2023,
       ``(C) $.50 in the case of any sale or use for any period 
     after December 31, 2022, and before January 1, 2024, and
       ``(D) $.33 in the case of any sale or use for any period 
     after December 31, 2023, and before January 1, 2025.''.
       (2) Termination.--
       (A) In general.--Section 6426(c)(6) is amended by striking 
     ``December 31, 2017'' and inserting ``December 31, 2024''.
       (B) Payments.--Section 6427(e)(6)(B) is amended by striking 
     ``December 31, 2017'' and inserting ``December 31, 2024''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to fuel sold or used after December 31, 2017.
       (4) Special rule for 2018.--Notwithstanding any other 
     provision of law, in the case of any biodiesel mixture credit 
     properly determined under section 6426(c) of the Internal 
     Revenue Code of 1986 for the period beginning on January 1, 
     2018, and ending on December 31, 2018, such credit shall be 
     allowed, and any refund or payment attributable to such 
     credit (including any payment under section 6427(e) of such 
     Code) shall be made, only in such manner as the Secretary of 
     the Treasury (or the Secretary's delegate) shall provide. 
     Such Secretary shall issue guidance within 30 days after the 
     date of the enactment of this Act providing for a one-time 
     submission of claims covering periods described in the 
     preceding sentence. Such guidance shall provide for a 180-day 
     period for the submission of such claims (in such manner as 
     prescribed by such Secretary) to begin not later than 30 days 
     after such guidance is issued. Such claims shall be paid by 
     such Secretary not later than 60 days after receipt. If such 
     Secretary has not paid pursuant to a claim filed under this 
     subsection within 60 days after the date of the filing of 
     such claim, the claim shall be paid with interest from such 
     date determined by using the overpayment rate and method 
     under section 6621 of such Code.

                       TITLE V--OTHER PROVISIONS

     SEC. 501. TECHNICAL AMENDMENTS RELATING TO PUBLIC LAW 115-97.

       (a) Amendment Relating to Section 11011.--Section 852(b) is 
     amended by adding at the end the following:
       ``(10) Treatment by shareholders of qualified reit 
     dividends and qualified publicly traded partnership income.--
       ``(A) In general.--A shareholder of a regulated investment 
     company shall take into account for purposes of section 
     199A(b)(1)(B)--
       ``(i) as a qualified REIT dividend the amount which is 
     reported by the company (in written statements furnished to 
     its shareholders) as being attributable to qualified REIT 
     dividends received by the company, and
       ``(ii) as qualified publicly traded partnership income the 
     amount which is reported by the company (in written 
     statements furnished to its shareholders) as being 
     attributable to qualified publicly traded partnership income 
     of the company.
       ``(B) Excess reported amounts.--Rules similar to the rules 
     of clauses (ii) and (iii) of paragraph (5)(A) shall apply for 
     purposes of this paragraph.
       ``(C) Negative qualified publicly traded partnership income 
     required to be taken into account.--If the qualified publicly 
     traded partnership income of the company is less than zero, 
     such income shall be reported by the company under 
     subparagraph (A)(ii).
       ``(D) Regulations.--The Secretary shall issue such 
     regulations or other guidance as may be necessary or 
     appropriate to carry out the purposes of this paragraph.''.
       (b) Amendments Relating to Section 13204.--
       (1) Section 168(e)(3)(E) is amended by striking ``and'' at 
     the end of clause (v), by striking the period at the end of 
     clause (vi) and inserting ``, and'', and by adding at the end 
     the following new clause:
       ``(vii) any qualified improvement property.''.
       (2) The table contained in subparagraph (B) of section 
     168(g)(3) is amended--
       (A) by striking the item relating to subparagraph (D)(v), 
     and
       (B) by inserting after the item relating to subparagraph 
     (E)(vi) the following new item:
20''.(vii).............................................................
       (c) Amendment Relating to Section 13302.--Section 
     13302(e)(2) of Public Law 115-97 is amended by striking 
     ``ending'' and inserting ``beginning''.
       (d) Amendment Relating to Section 13307.--Section 162(q)(2) 
     is amended by inserting ``in the case of the taxpayer for 
     whom a deduction is disallowed by reason of paragraph (1),'' 
     before ``attorney's fees''.
       (e) Amendment Relating to Section 14103.--
       (1) In general.--Section 965(h) is amended by adding at the 
     end the following new paragraph:
       ``(7) Installments not to prevent credit or refund of 
     overpayments or increase estimated taxes.--If an election is 
     made under paragraph (1) to pay the net tax liability under 
     this section in installments--
       ``(A) no installment of such net tax liability shall--
       ``(i) in the case of a request for credit or refund, be 
     taken into account as a liability for purposes of determining 
     whether an overpayment exists for purposes of section 6402 
     before the date on which such installment is due, or
       ``(ii) for purposes of sections 6425, 6654, and 6655, be 
     treated as a tax imposed by section 1, section 11, or 
     subchapter L of chapter 1, and
       ``(B) the first sentence of section 6403 shall not apply 
     with respect to any such installment.''.
       (2) Limitation on payment of interest.--In the case of the 
     portion of any overpayment which exists by reason of the 
     application of section 965(h)(7) of the Internal Revenue Code 
     of 1986 (as added by this subsection)--
       (A) if credit or refund of such portion is made on or 
     before the date which is 45 days after the date of the 
     enactment of this Act, no interest shall be allowed or paid 
     under section 6611 of such Code with respect to such portion, 
     and
       (B) if credit or refund of such portion is made after the 
     date which is 45 days after the date of the enactment of this 
     Act, no interest shall be allowed or paid under section 6611 
     of such Code with respect to such portion for any period 
     before the date of the enactment of this Act.
       (f) Amendments Relating to Section 14213.--
       (1) Section 958(b) is amended--
       (A) by inserting after paragraph (3) the following:

[[Page H10458]]

       ``(4) Subparagraphs (A), (B), and (C) of section 318(a)(3) 
     shall not be applied so as to consider a United States person 
     as owning stock which is owned by a person who is not a 
     United States person.'', and
       (B) by striking ``Paragraph (1)'' in the last sentence and 
     inserting ``Paragraphs (1) and (4)''.
       (2) Subpart F of part III of subchapter N of chapter 1 is 
     amended by inserting after section 951A the following new 
     section:

     ``SEC. 951B. AMOUNTS INCLUDED IN GROSS INCOME OF FOREIGN 
                   CONTROLLED UNITED STATES SHAREHOLDERS.

       ``(a) In General.--In the case of any foreign controlled 
     United States shareholder of a foreign controlled foreign 
     corporation--
       ``(1) this subpart (other than sections 951A, 951(b), 957, 
     and 965) shall be applied with respect to such shareholder 
     (separately from, and in addition to, the application of this 
     subpart without regard to this section)--
       ``(A) by substituting `foreign controlled United States 
     shareholder' for `United States shareholder' each place it 
     appears therein, and
       ``(B) by substituting `foreign controlled foreign 
     corporation' for `controlled foreign corporation' each place 
     it appears therein, and
       ``(2) sections 951A and 965 shall be applied with respect 
     to such shareholder --
       ``(A) by treating each reference to `United States 
     shareholder' in such sections as including a reference to 
     such shareholder, and
       ``(B) by treating each reference to `controlled foreign 
     corporation' in such sections as including a reference to 
     such foreign controlled foreign corporation.
       ``(b) Foreign Controlled United States Shareholder.--For 
     purposes of this section, the term `foreign controlled United 
     States shareholder' means, with respect to any foreign 
     corporation, any United States person which would be a United 
     States shareholder with respect to such foreign corporation 
     if--
       ``(1) section 951(b) were applied by substituting `more 
     than 50 percent' for `10 percent or more', and
       ``(2) section 958(b) were applied without regard to 
     paragraph (4) thereof.
       ``(c) Foreign Controlled Foreign Corporation.--For purposes 
     of this section, the term `foreign controlled foreign 
     corporation' means a foreign corporation, other than a 
     controlled foreign corporation, which would be a controlled 
     foreign corporation if section 957(a) were applied--
       ``(1) by substituting `foreign controlled United States 
     shareholders' for `United States shareholders', and
       ``(2) by substituting `section 958(b) (other than paragraph 
     (4) thereof)' for `section 958(b)'.
       ``(d) Regulations.--The Secretary shall prescribe such 
     regulations or other guidance as may be necessary or 
     appropriate to carry out the purposes of this section, 
     including regulations or other guidance--
       ``(1) to treat a foreign controlled United States 
     shareholder or a foreign controlled foreign corporation as a 
     United States shareholder or as a controlled foreign 
     corporation, respectively, for purposes of provisions of this 
     title other than this subpart, and
       ``(2) to prevent the avoidance of the purposes of this 
     section.''.
       (3) The amendments made by paragraphs (1) and (2) shall 
     apply to--
       (A) the last taxable year of foreign corporations beginning 
     before January 1, 2018, and each subsequent taxable year of 
     such foreign corporations, and
       (B) taxable years of United States persons in which or with 
     which such taxable years of foreign corporations end.
       (g) Effective Dates.--Except as otherwise provided in this 
     section, the amendments made by this section shall take 
     effect as if included in the provision of Public Law 115-97 
     to which they relate.

     SEC. 502. CLARIFICATION OF TREATMENT OF VETERANS AS SPECIFIED 
                   GROUP FOR PURPOSES OF THE LOW-INCOME HOUSING 
                   TAX CREDIT.

       For purposes of section 42(g)(9)(B) of the Internal Revenue 
     Code of 1986, veterans shall not fail to be treated as a 
     specified group under a Federal program.

     SEC. 503. CLARIFICATION OF GENERAL PUBLIC USE REQUIREMENT FOR 
                   QUALIFIED RESIDENTIAL RENTAL PROJECTS.

       (a) In General.--Section 142(d)(2) is amended by adding at 
     the end the following new subparagraph:
       ``(F) Clarification of general public use requirement.--
     Rules similar to the rules of section 42(g)(9) shall apply 
     for purposes of this subsection.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to bonds issued before, on, or after the date of 
     enactment of this Act.

     SEC. 504. FLOOR PLAN FINANCING APPLICABLE TO CERTAIN TRAILERS 
                   AND CAMPERS.

       (a) In General.--Section 163(j)(9)(C) is amended by adding 
     at the end the following new flush sentence:

     ``Such term shall include any trailer or camper which is 
     designed to provide temporary living quarters for 
     recreational, camping, travel, or seasonal use and is 
     designed to be towed by, or affixed to, a motor vehicle.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2017.

     SEC. 505. REPEAL OF INCREASE IN UNRELATED BUSINESS TAXABLE 
                   INCOME BY DISALLOWED FRINGE.

       (a) In General.--Section 512(a) is amended by striking 
     paragraph (7).
       (b) Effective Date.--The amendment made by this section 
     shall take effect as if included in section 13703 of Public 
     Law 115-97.

     SEC. 506. CERTAIN PURCHASES OF EMPLOYEE-OWNED STOCK 
                   DISREGARDED FOR PURPOSES OF FOUNDATION TAX ON 
                   EXCESS BUSINESS HOLDINGS.

       (a) In General.--Section 4943(c)(4)(A) is amended by adding 
     at the end the following new clause:
       ``(v) Certain purchases of employee-owned stock 
     disregarded.--For purposes of clause (i), subparagraph (D), 
     and paragraph (2), any voting stock which--

       ``(I) is not readily tradable on an established securities 
     market,
       ``(II) is purchased by the business enterprise on or after 
     January 1, 2005, from a stock bonus or profit sharing plan 
     described in section 401(a) in which employees of such 
     business enterprise participate, in connection with a 
     distribution from such plan, and
       ``(III) is held by the business enterprise as treasury 
     stock, cancelled, or retired,

     shall be treated as outstanding voting stock, but only to the 
     extent so treating such stock would not result in permitted 
     holdings exceeding 49 percent (determined without regard to 
     this clause). The preceding sentence shall not apply with 
     respect to the purchase of stock from a plan during the 10-
     year period beginning on the date the plan is established.''
       (b) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     apply to taxable years ending after the date of enactment of 
     this Act and to purchases by a business enterprise of voting 
     stock in taxable years beginning before, on, or after the 
     date of enactment of this Act.
       (2) Special rule for grandfathered foundations in case of 
     decrease in ownership by reason of pre-enactment purchases.--
     Section 4943(c)(4)(A)(ii) of the Internal Revenue Code of 
     1986 shall not apply with respect to any decrease in the 
     percentage of holdings in a business enterprise by reason of 
     section 4943(c)(4)(A)(v) of such Code (as added by this 
     section).

     SEC. 507. ALLOWING 501(C)(3) ORGANIZATION TO MAKE STATEMENTS 
                   RELATING TO POLITICAL CAMPAIGN IN ORDINARY 
                   COURSE OF CARRYING OUT ITS TAX EXEMPT PURPOSE.

       (a) In General.--Section 501 of the Internal Revenue Code 
     of 1986 is amended by adding at the end the following new 
     subsection:
       ``(s) Special Rule Relating to Political Campaign 
     Statements of Organization Described in Subsection (c)(3).--
       ``(1) In general.--For purposes of subsection (c)(3) and 
     sections 170(c)(2), 2055, 2106, 2522, and 4955, an 
     organization shall not fail to be treated as organized and 
     operated exclusively for a purpose described in subsection 
     (c)(3), nor shall it be deemed to have participated in, or 
     intervened in any political campaign on behalf of (or in 
     opposition to) any candidate for public office, solely 
     because of the content of any statement which--
       ``(A) is made in the ordinary course of the organization's 
     regular and customary activities in carrying out its exempt 
     purpose, and
       ``(B) results in the organization incurring not more than 
     de minimis incremental expenses.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years ending after the date of the 
     enactment of this Act.

     SEC. 508. CHARITABLE ORGANIZATIONS PERMITTED TO MAKE 
                   COLLEGIATE HOUSING AND INFRASTRUCTURE GRANTS.

       (a) In General.--Section 501, as amended by the preceding 
     provisions of this Act, is amended by adding at the end the 
     following new subsection:
       ``(t) Treatment of Organizations Making Collegiate Housing 
     and Infrastructure Improvement Grants.--
       ``(1) In general.--For purposes of subsection (c)(3) and 
     sections 170(c)(2)(B), 2055(a)(2), and 2522(a)(2), an 
     organization shall not fail to be treated as organized and 
     operated exclusively for charitable or educational purposes 
     solely because such organization makes collegiate housing and 
     infrastructure grants to an organization described in 
     subsection (c)(7) which applies the grant to its collegiate 
     housing property.
       ``(2) Housing and infrastructure grants.--For purposes of 
     paragraph (1), collegiate housing and infrastructure grants 
     are grants to provide, improve, operate, or maintain 
     collegiate housing property that may involve more than 
     incidental social, recreational, or private purposes, so long 
     as such grants are for purposes that would be permissible for 
     a dormitory or other residential facility of the college or 
     university with which the collegiate housing property is 
     associated. A grant shall not be treated as a collegiate 
     housing and infrastructure grant for purposes of paragraph 
     (1) to the extent that such grant is used to provide physical 
     fitness facilities.
       ``(3) Collegiate housing property.--For purposes of this 
     subsection, collegiate housing property is property in which, 
     at the time of a grant or following the acquisition, lease, 
     construction, or modification of such property using such 
     grant, substantially all of the residents are full-time 
     students at the college or university in the community where 
     such property is located.
       ``(4) Grants to certain organizations holding title to 
     property, etc.--For purposes of this subsection, a collegiate 
     housing and infrastructure grant to an organization described 
     in subsection (c)(2) or (c)(7) holding title to property 
     exclusively for the benefit of an organization described in 
     subsection (c)(7) shall be considered a grant to the 
     organization described in subsection (c)(7) for whose benefit 
     such property is held.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to grants made in taxable years ending after the 
     date of the enactment of this Act.

[[Page H10459]]

  


     SEC. 509. RESTRICTION ON REGULATION OF CONTINGENCY FEES WITH 
                   RESPECT TO TAX RETURNS, ETC.

       The Secretary of the Treasury may not regulate, prohibit, 
     or restrict the use of a contingent fee in connection with 
     tax returns, claims for refund, or documents in connection 
     with tax returns or claims for refund prepared on behalf of a 
     taxpayer.

                 DIVISION B--TAXPAYER FIRST ACT OF 2018

     SECTION 1. SHORT TITLE; ETC.

       (a) Short Title.--This division may be cited as the 
     ``Taxpayer First Act of 2018''.
       (b) Amendment of 1986 Code.--Except as otherwise expressly 
     provided, whenever in this division 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 
     division 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.
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. Development of online accounts and portals.
Sec. 2103. Internet platform for Form 1099 filings.
Sec. 2104. 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

[[Page H10460]]

     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.--
       (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:

[[Page H10461]]

  


     ``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 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

[[Page H10462]]

     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:
       ``(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,

[[Page H10463]]

       ``(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
       ``(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

[[Page H10464]]

     the complaint and there is no showing that such delay is due 
     to the bad faith of 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 month 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 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)''.

[[Page H10465]]

       (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 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

[[Page H10466]]

     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.
       (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. DEVELOPMENT OF ONLINE ACCOUNTS AND PORTALS.

       (a) In General.--The Secretary of the Treasury or the 
     Secretary's delegate (hereafter referred to in this section 
     as the ``Secretary'') shall--
       (1) develop secure individualized online accounts to 
     provide services to taxpayers and their designated return 
     preparers, including obtaining taxpayer information, making 
     payment of taxes, sharing documentation, and (to the extent 
     feasible) addressing and correcting issues, and
       (2) develop a process for the acceptance of tax forms, and 
     supporting documentation, in digital or other electronic 
     format.
       (b) Electronic Services Treated as Supplemental; 
     Application of Security Standards.--The Secretary shall 
     ensure that the processes described in subsection (a)--
       (1) are a supplement to, and not a replacement for, other 
     services provided by the Internal Revenue Service to 
     taxpayers, including face-to-face taxpayer assistance and 
     services provided by phone, and
       (2) comply with applicable security standards and 
     guidelines.
       (c) Process for Developing Online Accounts.--
       (1) Development of plan.--Not later than 1 year after the 
     date of the enactment of this Act, the Secretary shall submit 
     to Congress a written report describing the Secretary's plan 
     for developing the secure individualized online accounts 
     described in subsection (a)(1). Such plan shall address the 
     feasibility of taxpayers addressing and correcting issues 
     through such accounts

[[Page H10467]]

     and whether access to such accounts should be restricted and 
     in what manner.
       (2) Deadline.--The Secretary shall make every reasonable 
     effort to make the secure individualized online accounts 
     described in subsection (a)(1) available to taxpayers by 
     December 31, 2023.

     SEC. 2103. 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. 2104. 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.''.

     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.

[[Page H10468]]

  


     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 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

[[Page H10469]]

       ``(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 
     the precedes subsection (c) and inserting the following:

     ``SEC. 7459. OPINIONS AND JUDGMENTS.

       ``(a) Requirement.--An opinion upon any proceeding 
     instituted before the Tax Court and a judgment thereon shall 
     be made as quickly as practicable. The judgment shall be made 
     by a judge in accordance with the opinion of the Tax Court, 
     and such judgment so made shall, when entered, be the 
     judgment of the Tax Court.
       ``(b) Inclusion of Findings of Fact in Opinion.--It shall 
     be the duty of the Tax Court and of each division to include 
     in its opinion or memorandum opinion upon any proceeding, its 
     findings of fact. The Tax Court shall issue in writing all of 
     its findings of fact, opinions, and memorandum opinions. 
     Subject to such conditions as the Tax Court may by rule 
     provide, the requirements of this subsection and of section 
     7460 are met if findings of fact or opinion are stated orally 
     and recorded in the transcript of the proceedings.''.
       (b) 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. The motion shall be debatable for 1 hour, 
equally divided and controlled by the chair and ranking minority member 
of the Committee on Ways and Means.
  The gentleman from Texas (Mr. Brady) and the gentleman from 
Massachusetts (Mr. Neal) each will control 30 minutes.
  The Chair recognizes the gentleman from Texas.


                             General Leave

  Mr. BRADY of Texas. Mr. Speaker, I ask unanimous consent that all 
Members have 5 legislative days to revise and extend their remarks and 
include extraneous materials on the bill that is currently under 
consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Texas?
  There was no objection.
  Mr. BRADY of Texas. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, I rise today in support of this important tax and 
oversight legislation. This bill has key timely components, each of 
which will help our economy continue moving in the right direction and 
provide help to families and communities damaged by disaster.
  First, I think it is simply irresponsible to wait until next year to 
deliver crucial tax relief for families in 14 States and territories 
who are struggling today to recover from this year's devastating 
wildfires, hurricanes, flooding, earthquakes, and other severe storms. 
California alone, 17,000 structures destroyed; nearly 90 lives lost 
throughout the Carolinas; throughout these other States, so many 
families waiting to hear from Congress that they will receive relief 
now and not next year.
  Both parties need to come together to help these communities rebuild, 
and rebuild today. This bill allows disaster victims to immediately 
access funds from their retirement accounts to begin their home 
rebuilding. It ensures losses from these disasters are immediately 
deductible and helps small businesses keep their workers on the 
payroll, even when their operations have been interrupted by these 
severe storms and wildfires.
  Together, we can, we will, and we should help these communities 
rebuild today.
  Secondly, working with the Senate, we have reached common ground on 
important retirement savings reforms. The House version of this bill 
already passed with many Democrats' votes. These reforms will help 
families save more throughout their lives, start saving earlier, while 
also helping our small businesses offer retirement plans to their 
valued workers.
  This bill includes bold redesigns and restructuring of the Internal 
Revenue Service, the first bipartisan reforms to that agency in nearly 
two decades. Working together, Republicans and Democrats in the House 
passed this redesign package 414-0 earlier this year.

[[Page H10470]]

It is time now to send these reforms to the President's desk to ensure 
that the IRS is an agency truly focused on quality taxpayer service.
  We are also offering bipartisan tax relief from some of ObamaCare's 
most damaging, harmful, and egregious taxes. Specifically, this bill 
provides relief from the Cadillac tax that punishes companies that 
provide good healthcare to their workers, the medical device tax that 
has chased thousands of jobs overseas, and relief from the health 
insurance tax and the tanning tax. These harmful taxes stifle 
innovation, reduce jobs, and increase the cost of families' health 
insurance.
  This package also makes good progress on two temporary tax provisions 
that expired at the beginning of this year. Temporary tax policy is 
hardly ever good tax policy. We have an opportunity here to set a new 
tone for how we treat these temporary tax extenders moving forward.
  Additionally, in this bill, we proactively eliminate any potential 
uncertainty for our churches and community groups so nothing distracts 
them from their core mission.
  We have included a small number of straightforward, time-sensitive 
technical corrections to the Tax Cuts and Jobs Act. Technical 
corrections, as we know, are normal and traditional with any big piece 
of legislation, especially with rewriting the Tax Code. These small 
tweaks are important and will ensure our new Tax Code works as 
intended, to grow the economy and increase wages for middle-class 
families.
  I urge all my colleagues to support these measures so we can send 
this important legislation to the Senate soon.
  Mr. Speaker, I reserve the balance of my time.
  Mr. NEAL. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I recall this very quaint time when some of us arrived 
in Congress when the legislative session would wind down. There would 
always be this stellar photograph of the Speaker of the House and the 
Republican leaders and the Democratic leaders and the Republican and 
Democratic leaders in the United States Senate, who would be 
photographed on the front page of most major dailies on the phone 
speaking to the President of the United States, regardless of what the 
President's political affiliation might be.
  So here we are closing the second session of the 115th Congress when 
we had time to do this. Instead, this is the second iteration of an 
irresponsible manner in terms of process that was offered to the 
Democratic minority in this House.
  On Monday night, we got notice of this without even seeing the 
substance of the proposal that was in front of us. This is not the way 
regular order functions nor, as I have just referenced, the way that 
legislative sessions are supposed to conclude.
  My friend--and I mean that with all sincerity--the chairman of the 
committee, noted that the American people are waiting to hear from 
Congress. Well, let me tell you this about these tax bills. It didn't 
take the wealthy long to hear from Congress. They heard from them right 
away, and the offering that they had was more concentrated wealth and 
more tax relief for people at the very top in America--taking that top 
rate from 39.6 to 37 percent, a cut in the corporate rate to 21 
percent, doubling the estate tax, and here we are again with another 
vehicle that is not paid for.
  So where do we find revenue right now as a percent of gross domestic 
product? It is at 16.4 percent. And we are hearing, well, just maybe 
this tax bill might bring us to 17.5 percent, when the historic battle 
tha the two parties have had in this House has generally been about 
between 18 and 19 cents on the dollar.

  So a year later, what do we have in front of us? The same procedure: 
closed doors, no hearings, not one witness. And if you pick up some 
gossip in the hallway about what this is to include, that is generally 
conceded now to be a point of achievement.
  So a year later, we are rushing another package through to correct 
the errors that were delivered in the first bill.
  And, by the way, these were not small errors. A couple of them were 
big enough to drive a Mack truck through.
  Not one hearing, not one witness, not one piece of evidence 
documented to put in front of this committee.
  So this is a last-ditch effort by our Republicans to revisit their 
tax law and ensure that it further benefits those who really are the 
strongest already in our society. They want to jam through some of 
these provisions to help corporations at the expense of shining some 
light on how we might have found a substantive opportunity to achieve a 
bipartisan outcome.
  The American voters delivered a resounding rebuke last month, and our 
friends don't seem to understand what that message was about.
  On election day, the tax bill polled that 49 percent were against and 
41 percent were for. And if you think it was just a messaging problem, 
that would be a mistake. They should have joined with us to advance 
some very important matters that are in this legislation; and when we 
would have had an opportunity to fix these together through 
transparency, hearings, witnesses, I think we could have easily 
accomplished a different outcome.
  I oppose this legislation because it is also not offset. For the 
third time this year, the party of fiscal rectitude that always 
lectures us when there is a Democratic President about balancing the 
budget went out and borrowed more than $2 trillion for the purpose of 
providing a tax cut to the people at the top--$2 trillion added to the 
budget deficits.
  Can you imagine what the reaction would have been if Barack Obama or 
Bill Clinton did that? The outrage would have been empowering in this 
institution. We would have heard about it for years at a time. But, no, 
it is okay to do it and then call it juice to the economy.

                              {time}  1545

  Well, there are many items in here that we fully approve of, but we 
disagree with the approach that is being taken, and we disagree with 
many of the substantive matters that are being offered.
  There is a national principle involved here, and that is, we come to 
the aid of all members of the American family when natural disasters 
settle in, not on a piecemeal basis. And we will, I assure you, try 
very earnestly and very quickly next year to address many of these same 
issues. And I guarantee you this, for all members of this committee, 
there will be hearings, and there will be witnesses, and it will be 
done in daylight to make sure that there is an opportunity for all to 
be heard, including our Republican friends.
  To close on part of this measure as well, this bill significantly 
erodes the Johnson amendment by allowing certain tax exempt 
organizations to make political statements during the ordinary course 
of activities.
  The SPEAKER pro tempore. The time of the gentleman has expired.
  Mr. NEAL. Mr. Speaker, I yield myself an additional 2 minutes.
  So this would allow now priest, rabbi, imam, minister, to stand at 
the pulpit and offer an endorsement of a particular candidate for 
public office.
  What happened to Jefferson's wall of separation?
  What happened to the idea that, unlike Europe and places like that 
where they have had religious strife for centuries, that we were able 
to avoid that because of the wall that Mr. Jefferson very skillfully 
constructed?
  This is a dangerous precedent that threatens to politicize charitable 
and philanthropic organizations.
  Finally, the health provisions in this bill do nothing to increase 
accountability for the device industry, employers, or health insurers. 
If we are going to provide tax relief to corporations, we should have 
guarantees that the savings will be reinvested in innovation; put more 
dollars in workers' pockets, and lower insurance premiums.
  Another issue that is not in dispute, Mr. Speaker, is the following: 
Overwhelmingly, that tax cut went to share buybacks with corporations 
and dividends. It did not come to the benefit of people who needed tax 
relief every single day.
  There are a number of provisions here that we find very supportable, 
but the idea that we are doing this in the closing minutes of the 115th 
Congress, I think, is objectionable to our side.
  The proposal before us is not paid for. It did not go through the 
regular order, and I urge our colleagues to oppose this legislation.

[[Page H10471]]

  Mr. Speaker, I reserve the balance of my time.
  Mr. BRADY of Texas. Mr. Speaker, I know everyone in Congress is eager 
to get back to a full week of Christmas shopping, but I am proud to 
yield 3 minutes to the gentleman from South Carolina (Mr. Rice) who 
represents a community devastated by disasters in 2018.
  Mr. RICE of South Carolina. Mr. Speaker, I stand in strong support of 
the tax and oversight package before us today.
  I appreciate the concern about the deficits from my colleague across 
the aisle, but I would remind my colleague that President Obama added 
$2 trillion in deficits in only 1 year.
  Mr. Speaker, this bill adds to the successes, the amazing successes 
of the Tax Cuts and Jobs Act which became law last year, and our 
economic potential in America has, once again, been unleashed and 
America is, once again, the land of opportunity.
  Unemployment is at a record low, Mr. Speaker. Consumer confidence and 
small business confidence are at historic highs, and wages are growing 
at their fastest pace in nearly a decade.
  Mr. Speaker, my friends across the aisle can say that this bill 
benefited only the wealthy, but I can tell you, I represent three of 
the poorest counties in South Carolina, Marion County, Dillon County, 
and Marlboro County, and all three of those counties, in 2016, were at 
or about 10 percent unemployment. Today, each one of those counties, 
largely as a result of this tax bill, are below 6 percent. For the 
first time in 30 years they are below 6 percent unemployment.
  When we passed the Tax Cuts and Jobs Act, our message was clear: We 
will not wait another 30 years to take up tax legislation. We will 
consistently work to improve the Tax Code.
  The legislation before us is an opportunity to build on the economic 
momentum that is creating opportunities and lifting people up in South 
Carolina and across the country.
  Two years ago, Hurricane Matthew made landfall in South Carolina, and 
just a few days before a tax filing deadline, people were ignoring 
evacuation orders from disaster officials to ensure they could meet 
their IRS filing deadlines. Can you imagine having to choose between 
boarding up your house or filing a tax return? That is what my 
constituents had to do.
  Ambiguity under the current law results in the IRS waiting to grant a 
deadline extension for weeks after a natural disaster. My bill, the 
Disaster Certainty Act, would create an automatic 60-day extension 
following a Presidential Disaster Declaration, and it is included in 
this bill.
  Additionally, this package includes the Hurricane Florence Tax Relief 
Act, which I introduced with Congressman Holding. This legislation 
gives disaster victims the flexibility to access emergency funds, 
encourages charitable giving, and enhances the deduction for personal 
casualty losses.
  Immediately following a disaster, families are faced with the cost of 
home repairs and temporary housing, but most do not have these funds at 
their disposal.
  Mr. Speaker, I encourage my colleagues to support this package.
  Mr. NEAL. Mr. Speaker, I yield 3 minutes to the gentleman from 
Michigan (Mr. Levin), the ranking member of the Health Subcommittee, 
who has served this institution with great distinction and dedication 
over many years.
  (Mr. LEVIN asked and was given permission to revise and extend his 
remarks.)
  Mr. LEVIN. Mr. Speaker, I thank Mr. Neal, and I salute his eloquent 
statement. I hope everybody listens.
  Usually, legislation has either rhyme or reason, or both. This bill 
has neither. It is dramatically unreasonable. It adds insult to injury. 
It would further increase our growing Federal debt, this time by almost 
$100 billion.
  Driven by the irresponsible 2017 tax law, our projected annual 
deficit has already more than doubled since President Trump came into 
office, more than doubled; mainly to benefit, as Mr. Neal has spelled 
out so well, the very wealthy.
  The majority thought the first tax bill of theirs would at least be 
helpful politically. It turned out, for voters, sour music. It was, as 
described earlier, hyper-partnership at its worst; no hearings. Nothing 
like it.
  So, on this last day of votes this session, and close to my last of 
thousands and thousands of votes over 36 years, I will proudly vote 
``no.''
  Mr. BRADY of Texas. Mr. Speaker, I yield 2 minutes to the gentleman 
from Illinois (Mr. LaHood), a key member of the Ways and Means 
Committee.
  Mr. LaHOOD. Mr. Speaker, I want to thank Chairman Brady for yielding 
time, and for his tireless leadership on improving our country's Tax 
Code.
  Mr. Speaker, I rise today in strong support of H.R. 88, the 
Retirement, Savings, and Other Tax Relief Act of 2018.
  Since the passage of the Tax Cuts and Jobs Act last year at this 
time, our economy has boomed. And under the direction of Chairman 
Brady, the Ways and Means Committee hasn't stopped working on advancing 
and improving our Nation's tax laws.
  In doing so, our committee has worked to make positive reforms to the 
IRS, and I am proud that this legislation includes language from my 
bill, the Improving Assistance for Taxpayers Act, which will bolster 
protections for taxpayers by requiring the IRS to respond promptly to 
Taxpayer Assistance Directives issued by the Taxpayer Advocate Service.
  Specifically, the IRS would be required to respond to Taxpayer 
Advocate Directives within 90 days.
  Implementing these changes will improve accountability and, 
therefore, more efficiently address systematic issues within the IRS. 
Not only does H.R. 88 take important steps to make our tax system more 
accountable, but it also includes important provisions that will 
provide certainty to our agriculture community in central and west 
central Illinois.
  Representing the country's eighth largest congressional district in 
terms of corn and soybean production, I have seen firsthand the 
positive impact of the Biodiesel Tax Credit on our agriculture 
community.
  Biodiesel producers have been hurt in the past by lapses in this 
credit, which has hindered their ability to plan for the future. H.R. 
88 provides a long-term extension and a path forward for the Biodiesel 
Tax Credit, which will provide positive assurances for our producers in 
the Midwest.
  As Americans continue to reap the benefits of pro-growth tax reform, 
it is important we continue to fine-tune our Tax Code to work better 
for the citizens of this country. H.R. 88 takes important steps toward 
doing just that, and I have been proud to work alongside Chairman Brady 
and the other members of the Ways and Means Committee to ensure we put 
taxpayers first, and that is what this bill does.
  I urge my colleagues to stand with me and support this legislation.
  Mr. NEAL. Mr. Speaker, I yield 2 minutes to the gentleman from Texas 
(Mr. Doggett), the ranking member of the Tax Policy Subcommittee.
  Mr. DOGGETT. Mr. Speaker, the voters told them: The party's over. Go 
home.
  But before going home, they want to go big with another big, 
irresponsible national debt-busting bill. Republicans are struggling to 
stuff just a little more silver in their donors' pockets as they get 
pushed out the Capitol door.
  Republicans are ending this session the very same way they began it 
in January of last year, with arrogance, with duplicity, with total 
indifference to the needs of working families across our country.
  And this bill comes from the ``Great Cover Up Committee,'' the 
committee that covers up as much of its tax work as possible from the 
public; the committee that secretly changes the tax law to directly 
benefit the Trump family; and the committee that refuses to even 
review, under existing law, the Trump tax returns; the committee that 
believes in overlook, not oversight of the corruption that pervades 
this Trump administration.
  Since Trump took office, the Republicans have feverishly pursued two 
goals: Take away healthcare from the many, and award the few with more 
tax benefits.
  Last Friday, a Republican judge in Texas ruled that they can take 
away the coverage. He declared the entire act of the Affordable Care 
Act unconstitutional.
  And so what is the response today from the actions of our indicted 
Texas

[[Page H10472]]

Attorney General colluding with the Trump administration that refused 
to defend the act? Are they here to protect Americans on preexisting 
conditions? No. They are here to reward those in the healthcare 
industry with more billions of dollars of tax breaks.
  Today's Republican parting shot adds almost $100 billion to our 
national debt, saddling existing and future Americans with that debt.
  We need, in a new Congress, genuine tax reform. Today's bill does not 
provide it.
  Mr. BRADY of Texas. Mr. Speaker, I yield 2 minutes to the gentleman 
from Ohio (Mr. Wenstrup).
  Mr. WENSTRUP. Mr. Speaker, I rise in support of the legislation at 
hand, which includes the Retirement, Savings, and Other Tax Relief Act 
of 2018, and the Taxpayer First Act of 2018.
  Since the passage of the Tax Cuts and Jobs Act, 2.1 million jobs have 
been created. More Americans are working. They are taking home more 
money as a result of pro-growth policies like tax reform and cleaning 
up an overly burdensome regulatory regime.
  We can keep this momentum going by enacting reforms like the one 
before us today. This package includes legislation to make it easier 
for families to save for retirement, and make it easier for employers 
to offer retirement plans to their employees.
  I am a former employer. I know that employers want this for their 
employees.
  It also makes important structural changes to the IRS to ensure it is 
oriented for taxpayer service, prevents abuses, and creates a more fair 
appeals process.
  This package would delay or repeal harmful health-related taxes, 
including delays for the Cadillac tax and the medical device tax which, 
I can tell you as a surgeon, is harmful for the advancement of medicine 
on behalf of patients.
  Also, this bill offers a full repeal of the excise tax on indoor 
tanning services, which affects small businesses all over the country.

                              {time}  1600

  It gives Americans impacted by recent disasters much needed 
flexibility to access their retirement savings, increases charitable 
contributions, and helps businesses keep their employees on payroll as 
they surmount these disasters.
  Finally, it makes technical corrections to the Tax Cuts and Jobs Act, 
thus ensuring that individuals and businesses can benefit from the 
important reforms of the law, as intended.
  Mr. Speaker, this package of bills continues our efforts to help 
Americans save, help the economy grow, improve IRS operations, and keep 
a nimble and smart Tax Code. So I encourage my colleagues to support 
this legislation on behalf of all Americans of all generations.
  Mr. NEAL. Mr. Speaker, I yield 2 minutes to the gentleman from 
California (Mr. Thompson), the very assertive spokesperson from Napa 
Valley and my friend.
  Mr. THOMPSON of California. Mr. Speaker, I thank the chairman for 
yielding me time.
  You know, here we go again. We started this session with a terrible 
tax bill that was written in the dark of night, not one single hearing, 
not one single expert witness, an unpaid-for $2.3 trillion tax cut. We 
find out after it is passed that it is fraught with problems.
  Now we are going to end the session with another tax bill, not quite 
as fiscally irresponsible as the first, but $100 billion unpaid for--
again, no hearings, no expert witnesses.
  Why in the world do you think this one is not going to be fraught 
with problems? This is the height of irresponsibility and just one more 
example of the Republicans' borrow-and-spend philosophy and practice.
  Once again, I am sure we are going to hear from our friends on the 
other side that now that we have done this, now that we have charged 
all this money to future generations, we are going to have to come back 
and put on our fiscally responsible hat and cut Medicare and cut Social 
Security.
  This is shameful, and it is irresponsible.
  If that is not bad enough, now, in this bill, you are going to try to 
provide false hope to people who were victimized from natural disasters 
all across the country, from hurricanes, tornados, fires. You know this 
bill is not going anyplace. The Senate is not going to take up this 
bill. So you are providing false hope to folks who really need our help 
right now.
  Mr. Speaker, revictimizing people who were terribly hurt during these 
disasters, it is shameful; it is irresponsible; and I urge a ``no'' 
vote.
  Mr. BRADY of Texas. Mr. Speaker, I yield 3 minutes to the gentleman 
from Pennsylvania (Mr. Kelly), the leader of the retirement and savings 
portion of this bill.
  Mr. KELLY of Pennsylvania. Mr. Speaker, I thank the chairman for 
bringing this important legislation to the floor.
  I rise in strong support of H.R. 88, a comprehensive package that in 
many ways will help millions of American families save more of their 
own money for their future.
  Among H.R. 88's many important features is a section that includes 
key elements of three retirement savings bills that I have been proud 
to introduce and champion over the last 2 years.
  One of those bills, the Family Savings Act, stood as one of the three 
main pillars of Tax Reform 2.0, which passed this House with bipartisan 
support in September. With H.R. 88, much of that bill, along with my 
bipartisan Retirement Enhancement and Savings Act and bipartisan 
Rightsizing Pension Premiums Act, is one giant step closer to becoming 
law.
  In short, this package is a wonderful gift at Christmas for all 
Americans, and it cannot come soon enough.
  Americans should be able to rely on three main sources of retirement 
income to ensure full financial security during their retirement years: 
first, Social Security; second, personal savings; and third, employer-
sponsored savings plans.
  Now, when it comes to that third source, an alarming number of 
Americans do not have access to an employer-sponsored 401(k) plan. 
Among those who do, a recent study found that 42 percent of them have 
less than $10,000 in their plan.
  Combined with the fact that more than 60 percent of Americans don't 
have enough cash to cover a $1,000 emergency expense, the passage of 
today's package is especially critical.
  Specifically, H.R. 88 will make it easier for small employers to pool 
together and offer retirement plans to their employees. This would help 
bridge the divide between the benefits that large employers might offer 
to their employees and those that smaller employers only wish that they 
could offer.
  Overall, this will help ensure that the next generation of Americans 
doesn't outlive its savings.
  I have to tell you, one of the things that I remember so clearly as a 
child growing up is my mother and dad saying to me: The one thing we 
never want to be to you kids is a burden.
  I thought to myself, my gosh, my mom and dad are worried about being 
a burden to my brothers and sisters, after all they have done for us?
  What we are trying to do is make up for that. The Greatest 
Generation, they are telling us they don't want to be a burden to the 
next generation. How American is that? That has nothing to do with 
Republicans and Democrats. That has to do with who we are as Americans.
  This H.R. 88 accomplishes a lot of those goals, but I have to tell 
you, a secure retirement for every American should not be a partisan 
issue, and we know it is not. So, today, let's come together as a 
unified body and send this bill to the Senate, for the sake of every 
American's peace of mind during this season of peace.
  Before I conclude, I also want to highlight the railroad track 
maintenance tax credit for the short-line railroads and the extension 
of the biodiesel tax credit. Each of these actions will directly 
support economic growth and job creation in rural communities 
     across America.
  As I look across to the other side, I think we are all the same. I 
can remember, as a child growing up, sitting down and making up a list 
and sending it off to the North Pole, telling Santa Claus everything I 
wanted. But I can remember coming down on Christmas morning, and I 
never got everything I wanted, but I was really thankful for everything 
I got.

[[Page H10473]]

  The SPEAKER pro tempore. The time of the gentleman has expired.
  Mr. BRADY of Texas. Mr. Speaker, I yield an additional 30 seconds to 
the gentleman.
  Mr. KELLY of Pennsylvania. Mr. Speaker, this is bipartisan. This is 
who we are. If we cannot secure the future for those who have done so 
much for us, what are we doing here?
  This is a wonderful opportunity for us to act at a time of year when 
it is much more important to give than it is to receive.
  Mr. NEAL. Mr. Speaker, I yield 2 minutes to the gentleman from Oregon 
(Mr. Blumenauer).
  Mr. BLUMENAUER. Mr. Speaker, I listened to my friend from 
Pennsylvania talking about bipartisan opportunities, things we agree 
on. You know, the railroad tax credit is something that we could have 
done in a heartbeat, but unfortunately, it is wrapped into a really 
embarrassing piece of legislation, which is a fitting symbol to the 
wrap-up of 8 years of Republican rule of the House Ways and Means 
Committee.
  We are in the process of again making the Tax Code more complex, 
which they have done every year they have been in control: talk about 
tax simplification, make it more complex.
  Those complexities were for people who actually needed it the least. 
We have lavished massive tax cuts on the most well-off in this country 
and done nothing to reduce the growing income inequality.
  They have assaulted the Affordable Care Act and actually put it at 
risk.
  I hear about the improvement of IRS customer service. For 8 years, 
they have assaulted the IRS in their war against taxes, and they have 
used taxpayers as the hostages. Employees there haven't had the 
resources to be able to deal meaningfully with the ever-increasing Tax 
Code to help taxpayers with their premiums.
  They have had no time to listen to the American public. You have seen 
major tax bills after major tax bills with no public hearings, no 
expert witnesses, no opportunity to really try that bipartisanship.
  Mr. Speaker, I reflect now on our friend Paul Ryan, who is leaving 
office, and what a sad note to end on. The Federal Government in 
November spent twice as much as it took in.
  The SPEAKER pro tempore. The time of the gentleman has expired.
  Mr. NEAL. Mr. Speaker, I yield an additional 1 minute to the 
gentleman from Oregon.
  Mr. BLUMENAUER. Mr. Speaker, after hearing Paul Ryan talk for years 
about deficits on the Ways and Means Committee and on the Budget 
Committee, he leaves a legacy of exploding deficits. You talk about 
burdens for our children: $2.3 trillion extra of national debt.
  Think for a moment: We can't balance the budget when times are as 
good as they are and unemployment is as low. We have had 8 years of 
increasing employment.
  I was just in the Cloakroom while Donald Trump was spouting off on 
TV, and I was watching as the Dow Jones plunged over 500 points. It is 
a verdict on the reckless Republican leadership in tax and spending, 
and they are leaving Democrats with serious problems to address.
  But I know, under our chairman and Democratic leadership, we will at 
least listen to the American public.
  The SPEAKER pro tempore. The time of the gentleman has again expired.
  Mr. NEAL. Mr. Speaker, I yield an additional 1 minute to the 
gentleman.
  Mr. BLUMENAUER. Mr. Speaker, we will allow the public to know what we 
are voting on, and we will actually be able to start building on the 
foundation of things that make a difference: rebuilding and renewing 
America, closing the income gap, allowing those most fortunate in our 
economy to be able to pay a little more so that we don't have to 
sacrifice services for the elderly, the poor, and students, and be able 
to rebuild and renew this country.
  I am looking forward to that opportunity for Democrats to take 
control, and this sorry Congress cannot end fast enough.
  Mr. Speaker, I urge rejection of this proposal.
  Mr. BRADY of Texas. Mr. Speaker, I recognize, under a Democrat 
majority, every American will be taller and smarter and better looking.
  Mr. Speaker, I yield 2 minutes to the gentleman from North Carolina 
(Mr. Holding), who helped lead legislation dealing with disaster 
relief.
  Mr. HOLDING. Mr. Speaker, I rise to urge my colleagues to join me in 
supporting this bill.
  This is a broad package, including a host of strong policy proposals 
supported by both Republicans and Democrats in both Chambers.
  If I may, Mr. Speaker, I would like to touch upon two specific parts 
of the bill.
  As you know, my home State of North Carolina was devastated by 
Hurricane Florence this past September. The damage is widespread, and 
the recovery efforts will take years. Folks impacted are in need of 
help, which is why I am grateful this package includes my legislation 
that I introduced with Mr. Rice, providing significant tax relief to 
individuals and businesses hurt by Hurricane Florence.
  Better yet, we have expanded the scope of my bill to include 
countless Americans who have been impacted by several natural disasters 
that have befallen our Natio over the past year.
  Specifically, this legislation will enact penalty-free access to 
retirement savings and provide tax incentives for employers and small 
businesses to ensure they keep employees on the payrolls.
  It will also make it easier for folks to claim tax deductions for the 
cost of destroyed property and will encourage people across the country 
to donate to recovery efforts by suspending limits on charitable 
contributions.
  Altogether, this bill will lessen the tax burden on folks impacted by 
natural disasters so they can use more of their money to recover, 
rebuild, and get back on their feet.
  This is one piece of a larger disaster relief package, and I am so 
glad to see it moving forward in this overall bill.
  The second provision I would like to briefly highlight is an 
important one that will assist low-income taxpayers with issues 
concerning the IRS.
  Taxes are already a major burden on low-income individuals living 
paycheck to paycheck, and the last thing they need to have to do is 
worry about dealing with the bureaucracy of the IRS. So low-income 
taxpayer clinics provide much needed relief guidance and support to 
low-income individuals, providing them with representation for the IRS 
or in court on audits, appeals, and other tax disputes. They provide 
this for a very low fee.
  So I am glad these provisions are included in the overall package, 
and I urge a ``yes'' vote on the overall package.
  Mr. NEAL. Mr. Speaker, I yield 3 minutes to the gentleman from New 
Jersey (Mr. Pascrell), the always erudite Mr. Pascrell.
  Mr. PASCRELL. Mr. Speaker, the bill before us today did not go 
through committee like a bill this large should. We could have offered 
amendments to address some of the most pressing issues with this tax 
bill.
  I would have started with how this bill cherry-picks winners and 
losers, with many of the losers being in States like the State I live 
in, the State of New Jersey.
  This is, again, let me repeat, ``Weekend at Bernie's.'' They prop up 
the dead tax bill, make it look alive, and then they bring in something 
that makes it look even more dead.
  That didn't work; this will not work. You didn't run on it; you will 
not run on this.

                              {time}  1615

  Our State got slammed by the new cap on the State and local tax 
deduction, better known as SALT, State and local taxes, the oldest 
deduction in the books. The GOP tax scam took money from homeowners and 
communities in my State and others to fund their massive giveaway to 
big corporations. The data is there. It is clear. It is succinct. It is 
definitive.
  Republicans even bragged about using their tax scam to hurt New 
Jersey and the region. Imagine that. Imagine bragging about 
deliberately hurting millions of people. My amendment would have 
restored this critical deduction, but it was blocked.
  This bill before us today provides targeted relief to victims of 
disasters, but only a select few. There have been 13 disasters since we 
last held a committee meeting on a tax bill, and I

[[Page H10474]]

don't see them listed here, not to mention the tax relief that victims 
of Hurricane Sandy never received in the first place.
  There is a bill that would provide disaster tax relief to all 
federally declared disaster areas automatically, which it should be, so 
we don't have to play these partisan games of picking and choosing. If 
we want to help people, let's vote on it.
  There are provisions in this bill that I would have supported, but 
our chairman made no such attempt to reach us. In fact, we didn't have 
any witnesses. In fact, we didn't have any hearings. How about that for 
democracy?
  Instead, this is nearly $100 billion.
  It is unpaid for; you are very good at that. It is undebated; you 
think you know all of the answers. And it is very, very partisan. So 
much for reaching out. And most important, it utterly ignores the needs 
of workers in this country.
  Mr. Speaker, did you hear that General Motors just announced 14,700 
workers are losing their jobs? Does this bill do anything to address 
that? No. In fact, the underlying tax bill they are trying to fix 
today--remember Bernie?--did nothing to help those workers either.
  General Motors moves American jobs to China and Mexico. They will be 
paying a lower tax rate for the pleasure, from 21 percent to a minimum 
of just 10.5 percent. How do you justify that?
  The SPEAKER pro tempore. The time of the gentleman has expired.
  Mr. NEAL. Mr. Speaker, I yield an additional 1 minute to the 
gentleman from New Jersey.
  Mr. PASCRELL. And we continue to let them deduct the cost--get this. 
We allow them to deduct the cost of moving their operations overseas.
  How un-American do you get? We need to stop that.
  There is a bill, by the way, to do that, if you noticed.
  If you can believe it, General Motors saved more than $150 million so 
far this year thanks to the GOP tax scam, and they appear to have 
benefited by as much as $6.5 billion by the tax holiday for offshore 
cash hidden in this GOP bill.
  The data is clear, Mr. Speaker. Read it. Yet here they are shipping 
jobs overseas just in time for the holidays.
  You might think after they were repudiated at the ballot box that 
Republicans would show some humility and extend a hand to work with us, 
reach out. No. All they could do is smile and say: Bernie, it is your 
year. Don't worry about it.
  Mr. BRADY of Texas. Mr. Speaker, I am proud to yield 3 minutes to the 
gentleman from Minnesota (Mr. Paulsen), an outstanding key member of 
the Ways and Means Committee.
  Mr. PAULSEN. Mr. Speaker, I thank the chairman for yielding.
  Mr. Speaker, I want to first speak, in general, in support of this 
tax package overall, which includes some very, very good tax policy. 
But I want to highlight and specifically draw attention to one very 
important provision, a bipartisan provision, and that is a further 
delay of the medical device tax for a 5-year period.
  My preference, Mr. Speaker, would have been to have a permanent 
repeal of the device tax, but I understand you have to compromise on 
things, and that is a good compromise, so 5 years is what we get.
  And look, during a period of time when there are very few issues that 
a lot of policymakers, unfortunately, in Congress can agree upon, there 
is no doubt that there has been strong, bipartisan, broad-based support 
to repeal and eliminate a very bad policy that was put in place as a 
part of ObamaCare and repealing this device tax.
  This is about making sure that our Nation, our country, America, 
continues to lead the world in this important ecosystem that is central 
to improving patient care and also creating high-quality jobs.
  We all know the medical device industry in America is truly an 
American success story. It is a Minnesota success story. I can speak to 
the 400,000 people around the country who are directly employed. I can 
speak to the 35,000 folks who are employed in Minnesota in this 
industry.
  And these are hundreds and hundreds of companies, by the way, Mr. 
Speaker, that I have had the chance to visit and tour, companies you 
may have never heard of. They may have 5 employees or 10 employees, but 
every single one of them has that doctor, that engineer, that 
entrepreneur who is working to improve or help save lives for patients.
  The device tax, however, unfortunately, caused the loss of about 
29,000 jobs as it was put in place. Back this last July, Members will 
recall that the House voted, overwhelmingly--bipartisan support--to 
permanently repeal this device tax with historic levels of support, 
both Republicans and Democrats. Nearly 300 Members voted together to 
get rid of it.
  It is really about protecting innovation, and it is about protecting 
small businesses. Eighty percent of medical device companies have less 
than 50 employees, and 93 percent of these companies have less than 500 
employees who have good, high-paying jobs.
  We are also a net exporter, exporting around the world in this 
industry. The Affordable Care Act, Mr. Speaker, imposed a new 2.3 
percent excise tax on all medical devices.

  It doesn't sound like much, but keep in mind, this is not a tax on 
profits. It is a tax on your sales; it is a tax on your revenue; and 
that is where we saw the negative impact, because it already takes 8 to 
10 years for these companies to become profitable in the first place. 
They deal with FDA regulation, and they deal with reimbursement issues. 
This raised the bar. This raised the hurdle. It made it much more 
difficult for these companies to become profitable in the first place.
  It is about giving predictability and giving certainty for these 
companies so that they can continue to help innovate and help patients. 
That is what it is really about, making sure that new, life-improving 
and lifesaving products are coming to market.
  I visited and met with engineers, technicians, owners, and 
entrepreneurs of these companies who work day in and day out coming up 
with the ideas for the innovation that really makes America the 
forefront leader.
  Mr. Speaker, I would encourage support for this bill. It is a good 
compromise, and it makes sense.
  Mr. NEAL. Mr. Speaker, I yield 2 minutes to the gentlewoman from 
California (Ms. Judy Chu), well-known for her financial acumen.
  Ms. JUDY CHU of California. Mr. Speaker, I rise today in strong 
opposition to H.R. 88.
  This bill contains a provision that can only be described as sneaky. 
It is an anti-choice provision that has no place in a tax bill. It 
tries to circumvent our Supreme Court and redefine ``person'' by 
allowing parents to open 529 college savings accounts for unborn 
children.
  Actually, this provision is unnecessary because, under current law, 
parents can already do this. They can open 529 college savings accounts 
for future children in their own name and then change the name of the 
beneficiary after the birth of their child.
  But the implications of adding ``unborn child'' directly into the Tax 
Code are serious. This is a thinly veiled attempt to codify the legal 
concept of the unborn child and, therefore, claim that, legally, the 
fetus is separate from the mother.
  This language has appeared in Republican tax bills before, and anti-
choice extremists did not attempt to hide its reason for its inclusion. 
When this provision appeared in the House version of H.R. 1, the GOP 
tax scam, the spokesperson for the anti-choice group March for Life 
stated publicly:

       We hope that this is the first step in expanding the child 
     tax credit to include unborn children as well.

  This is an obvious attempt to lay the legal groundwork for 
undermining a woman's constitutional right to an abortion. It is an 
outright attack on women's reproductive rights.
  Right before Republicans must turn over control of the House to 
Democrats and before a record number of Congresswomen are sworn in, 
Republicans are making a last-ditch effort to erode women's 
constitutional rights to control their own bodies in order to score one 
last point for an extremist base, and all in a bill that they know is 
dead on arrival in the Senate.
  Mr. Speaker, I strongly urge my colleagues to reject this bill and 
vote ``no.''
  Mr. BRADY of Texas. Mr. Speaker, I yield 2 minutes to the gentleman 
from Florida (Mr. Mast).

[[Page H10475]]

  

  Mr. MAST. Mr. Speaker, this is not a debate on education, but I am 
worried about the ability of my colleagues to add.
  As we talk about tax and rates and terms thrown out about things like 
``irresponsible'' and ``giveaways,'' I think it is incumbent that we 
reflect on those terms and what that actually means.
  When we think about the rates that were passed, you think about 
somebody's rate going from 15 percent down to 12 percent, or from 25 
percent down to 22 percent, or from 28 percent down to 24 percent, and 
you think about that as an overall of a 10 percentage point move. Or 
you think about the top three brackets coming down from 39.6 percent 
down to 37 percent. Or going down another point below that, maybe a 3.6 
percent decrease, total, on the top three brackets, and 10 percent on 
the bottom four brackets. That is not an inequitable distribution of 
those tax cuts.
  You think about the term being thrown around when somebody says it is 
a giveaway. When somebody says that it is a giveaway to allow somebody 
to keep more of their earnings, what they are saying, fundamentally, is 
that a person's earnings don't belong to them; they belong to the 
Federal Government, and the Federal Government can give those earnings 
back to them.
  That is not the truth. All of the earnings, the work of somebody's 
hands, the fruits of somebody's labor, those are the earnings of the 
individual, and they are good enough to give the Federal Government 
some of those dollars to go out there and function.
  When you think about that term ``irresponsible,'' what my colleagues 
on the other side of the aisle are saying is that it is irresponsible 
to allow somebody to keep more of the fruits of their labor.
  I rise in support of this bill. I encourage my colleagues on the 
other side of the aisle to reflect about the things that they are 
saying, the lies that they are literally out there saying. I hope that 
they can go to work for the American people instead of going to work 
online.
  Mr. NEAL. Mr. Speaker, we don't object to the three brackets being 
lowered for the American people in the middle class. We object to the 
idea that there were no hearings on this and the top brackets were 
reduced, doubling the estate tax exemption, cutting the top rate from 
39.6 percent to 37 percent. If you want to do that for people at the 
very end of the economic scale, we are in.
  Mr. Speaker, I yield 1 minute to the gentlewoman from Texas (Ms. 
Jackson Lee).
  Ms. JACKSON LEE. Mr. Speaker, I think it is interesting to suggest 
that anyone is telling an untruth when 24 hours ago this House 
committed to passing a CR to stop the government from being shut down 
and the United States Senate passed it without objection to keep the 
government open. Here we are now, with the government on the verge of 
closing because the President owns it, and we are talking about a bill 
that creates $53 billion in deficit and does not help the middle class 
and small businesses and has a pox on women as relates to choice.

  What kind of crisis are my friends trying to build a few days before 
we rise to take leadership as a majority in the 116th Congress? Maybe 
we should have hearings, but maybe we should stop this bill altogether 
and get back to keeping the government open and passing a continuing 
resolution so that the working people in all of these agencies, 
including Border Patrol agents and others, can do their job.
  This is an insanity that keeps on growing. Mr. President, let's stop 
doing this and keep the government open, and let's have hearings on 
this tax bill to ensure that we do what is right for small businesses, 
working families, and women of America.
  The SPEAKER pro tempore. Members are reminded to address their 
remarks to the Chair.
  Mr. NEAL. Mr. Speaker, could we have clarification as to how much 
time is remaining on each side.
  The SPEAKER pro tempore. The gentleman from Massachusetts has 6\1/2\ 
minutes remaining. The gentleman from Texas has 8\1/2\ minutes 
remaining.
  Mr. NEAL. Mr. Speaker, I yield 1\1/2\ minutes to the gentlewoman from 
Florida (Ms. Wasserman Schultz).
  Ms. WASSERMAN SCHULTZ. Mr. Speaker, I appreciate the gentleman 
yielding.
  Mr. Speaker, I rise in opposition to the bill and, in particular, 
opposition to section 407, which would, essentially, repeal the Johnson 
amendment. The Johnson amendment protects the integrity and 
independence of charities and houses of worship by ensuring that they 
do not endorse or oppose political candidates.
  One of the characteristics of American religious institutions that 
has made them so sacred is that they are separate from government and 
separate from campaign profits.

                              {time}  1630

  If Americans want to get involved in partisan elections, we know how 
to do that, but what we are seeking when we attend church, synagogue, 
mosque, temple, or any or house of worship is something quite 
different.
  This distinction has long been reflected in how our law treats 
religious institutions differently than political institutions, to 
preserve their sacred place in American society, houses of worship must 
stay above the political fray, and refrain from endorsing candidates 
for political office.
  Current law strikes as balance, and it is important to emphasize what 
houses of worship with tax-exempt status can do: they are permitted to 
advocate for policies that are consistent with their values, and they 
can help their members become engaged in the political process by 
organizing events, registering voters, and getting them to the polls. 
They just can't tell people who to vote for.
  It is no surprise that a wide array of religious organizations and 
faith leaders support the Johnson amendment and oppose section 407 of 
this bill, out of an understandable concern that political parties and 
candidates seeking power would be empowered to use their congregations 
as tools and pressure them for their endorsements.
  I think we can all agree that Americans have had enough of political 
partisanship. They do not want more of it, and they certainly don't 
want it in their houses of worship where so many seek refuge from the 
tumult and chaos of their day-to-day life.
  Mr. Speaker, I urge a ``no'' vote on the bill for this and many other 
reasons.
  Mr. BRADY of Texas. Mr. Speaker, I am proud to yield 2 minutes to the 
gentleman from Kansas (Mr. Estes).
  Mr. ESTES of Kansas. Mr. Speaker, I rise today in support of the 
Retirement, Savings, and Other Tax Relief Act of 2018.
  In a long overdue move, and one with strong bipartisan support, this 
bill modernizes the IRS and improves the efficiency of the agency in 
dealing with taxpayers.
  As one of the only former State treasurers in Congress, I understand 
our need for our country's tax collection agency to adopt a culture of 
customer service and to help taxpayers file taxes, retrieve 
information, resolve issues, and make payments.
  In addition to reforming the IRS, this bill also provides needed 
certainty to businesses by making certain tax cuts permanent, and 
extending others so that families and businesses know what to expect 
from our Tax Code in the future.
  While our economy is booming, businesses of every size I meet with in 
my district in Kansas consistently say that the number one thing they 
need from Washington is certainty. We owe it to job creators and 
workers to provide that certainty so that they can provide for other 
expansions and other decisionmaking.
  To support workers and families, this bill makes it easier for 
businesses to provide retirement plans for more employees who 
previously did not have access to them, and allows families to save 
more for retirement.
  To support entrepreneurs and small businesses, this bill will allow 
new companies to write off more of their initial startup cost and allow 
startups to expand easier and faster without hitting limits on certain 
tax benefits like that for research and development.
  Finally, this legislation also helps victims impacted by the recent 
wildfires, hurricanes, and other natural disasters by allowing victims 
to access retirement accounts without penalty

[[Page H10476]]

to assist in their recovery. Our fellow Americans in need should have 
every tool available to help them rebuild.
  As I said in a recent op-ed for FOX News, the Retirement, Savings, 
and Other Tax Relief Act of 2018 is the right bill at the right time 
for America's families and economy. Passing the Tax Cuts and Jobs Act 
started an economic turnaround our country has not experienced in 
decades. Instead of stopping that momentum in its tracks, we need to 
build upon that success with these commonsense reforms.
  Mr. Speaker, I want to thank Chairman Brady and the Ways and Means 
Committee for continuing to fund solutions to grow our economy and help 
families.
  Mr. NEAL. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, so the holy grail of the tax cut was the constant 
reference to the stock market. That is what we have heard for the last 
year. I wonder about some of our Members, if they want to compare their 
401(k) to what it was like in October of 2008. Or as we have witnessed 
that constant reference to the stock market, the stock market, the 
stock market, and a reminder that at the end of 2017, the stock market, 
or the Dow Jones Industrial Average went up to 24,719, and this 
afternoon, it is at 22,859.
  Mr. Speaker, I call attention to that because of the chaotic nature 
in which this legislative body has functioned: no hearings, no 
witnesses, legislation crafted, we don't know where, brought to the 
floor, and then referenced as the achievement of a rising stock market.
  So here we are again without one single hearing, rushing through 
another tax package that is not offset, and doubles down on the 
original law's skewed benefits for people at the top, again, without a 
markup or a single hearing.
  A rushed process resulted in a failed product. And now, they want to 
duplicate that process with these changes proposed here today.
  The bill includes a number of provisions that could have been 
reconciled very easily with our side enthusiastically, including the 
references that Mr. Kelly made to retirement benefits. We are all in.
  But the hit on nonprofits--by the way, taking away benefits for 
parking for some of the nonprofits, is but another example of how this 
legislation actually lacked substance.
  We can do much better. And I certainly want to encourage colleagues 
to oppose this legislation on process and policy, and just as I yield 
back, we on both sides here, are very fortunate to have exceptional tax 
advisers in terms of the staff members, and I want to thank Kara Getz 
for her work as the chief tax counsel as she moves to her new role in 
my office as well.

  Mr. Speaker, I would like to be able to say Merry Christmas to all, 
but this tax bill does not help my enthusiasm. But I will still say 
Merry Christmas to all, and I yield back the balance of my time.
  Mr. BRADY of Texas. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, today, what we have heard is: our feelings are hurt. 
They are really, really hurt. This didn't go through regular order, and 
so our feelings are really hurt.
  Those who oppose that say: Look, we are trying to help families that 
are damaged by our disasters, thousands of them. I imagine those 
families who are looking at their homes that are charred and burned, 
and families who are living on the second floor of their home because 
it has been wiped out, I bet they would like some regular order to 
their life. I bet they would like things to go back to normal. I bet 
they would like to spend the holidays in that home, not safe and warm 
up here in Congress, coming up with excuses on how not to help them.
  We are told it is shameless to help those who are victims of 
disaster, in Alabama, California, Florida, and Georgia, Hawaii, 
Indiana, and North Carolina. It is shameless to help you. We can't be 
bothered, is what opponents are saying today. In South Carolina, Texas, 
Virginia, Wisconsin, American Samoa, Guam, Northern Mariana Islands, we 
are busy, opponents are saying: We have got holidays. We can't help.
  I believe we ought to help. Every one of us, Republicans, Democrats, 
ought to provide this key disaster tax relief that those families and 
communities need.
  We are told it is reckless to help families and small businesses save 
more earlier in life, but we know we are not a Nation of savers. We 
have got to do more to help them. We used to do that in a bipartisan 
way. We can do that today.
  We are told we never heard of a bill that reins in the IRS, redesigns 
them to become a taxpayer first agency and protects our personal data. 
Yet, that bill passed this House 414-0 because we had leaders like Lynn 
Jenkins from Kansas and  John Lewis from Georgia, who worked together 
along with the Senate to do really thoughtful work together. Both 
parties gave, and took, and found a good solution. That is in this 
bill.
  We are told that we ought not delay these ObamaCare taxes, but 
Republicans and Democrats, together, have worked to do this in the 
past, and President Obama signed them as well.
  And then we are finally told that there is an attack on women's 
reproductive rights. Here is what it is: in this bill we allow, when 
you find out you are pregnant and you want to get a little head start 
to start saving for your child's education, like preschool, 
kindergarten, elementary school, get a head start on saving for trade 
school or for college, we are told that somehow that is an attack on 
reproductive rights.
  It is a head start just for families that want to save a little more, 
get one more year. Because today, you have to actually open an account 
in someone else's name and transfer it later. We are just saying, look, 
get a head start. If you want to start saving, we are with you. Do your 
very best for your child. We think that is important.
  At the end of the day, I think we ought to put aside this temper 
tantrum and come together to help a lot of families in our country who 
need this help.
  My guess is, if our Democrat friends get their way and manage to 
obstruct, they will take all of these elements right back up at the 
beginning of the year. It will be their idea and their credit. I will 
give them credit right now for it. I just think we ought to help people 
today, and that we ought not break for any holidays until we have 
really done the work that these people deserve.
  As long as we are talking about people who deserve our appreciation, 
I want to thank our chief tax counsel Barbara Angus, who has done just 
a remarkable job leading an amazing Tax Policy Subcommittee, and staff 
who have done such remarkable work for the American people and for us 
here over the past 3 years.
  I want to thank the staff director of our Oversight Subcommittee, 
Rachel Kaldahl--the whole team--who have done remarkable work in a 
bipartisan way, reforming the IRS; Stephanie Parks in the Health 
Subcommittee area, on these ACA taxes; and, Machalagh Carr, our general 
counsel, who shepherded us to the work today.
  The bottom line is I think there are lots of ways we can work 
together to help the American people, especially those in need right 
now. This has bipartisan work, bipartisan thought. Let's join together 
and help the American people.
  Mr. Speaker, I urge a ``yes'' vote, and I yield back the balance of 
my time.
  Mr. SCOTT of Virginia. Mr. Speaker, I rise in opposition to H.R. 88. 
This package has been presented as tax relief for the victims of 
hurricanes, fires, and other natural disasters victims. In reality, it 
is a grab bag of almost $100 billion in unpaid for tax breaks--
including tax breaks for the health care industry. This bill also 
allows tax exempt religious organizations to engage in political 
activity. Moreover, the bill conspicuously omits a provision that would 
ensure the solvency of the trust fund that provides health care and 
compensation for coal miners with black lung disease.
  On December 31, 2018, the excise tax rate that funds the Black Lung 
Benefits Disability Trust Fund will drop by 55 percent, unless Congress 
takes action to extend the tax rate. That tax rate of $1.10 per ton for 
underground coal and 55 cents per ton for surface was extended in 2008 
for 10 years. Allowing the tax rate to sunset at the end of this year 
will have grave fiscal consequences. According to the Government 
Accountability Office (GAO), the failure to extend the tax rate will 
cause the deficit in the Trust Fund to skyrocket from approximately $5 
billion today to $15 billion in 2050.
  Once the tax rate drops, the annual costs for benefits, medical care 
and administrative

[[Page H10477]]

costs will exceed revenues every year for the foreseeable future. The 
only way these benefits can be paid going forward is if the Trust Fund 
borrows from taxpayers. Congress designed the Black Lung Benefits Act 
to be financed by a tax on coal production--not the taxpayers.
  Another consequence of failing to act is that the accumulated debt 
will pile up each year. The Trust Fund will have to borrow to also pay 
debt service and interest costs each year. When the debt reaches the 
breaking point, the only solution is a taxpayer bailout. It is 
irresponsible to allow the coal industry to privatize gains and 
socialize the costs.
  Although black lung disease had been on the decline after the passage 
of the 1969 Coal Act, in recent years it has returned with a vengeance. 
Recent studies show that rates of black lung disease have reached 25 
percent in Appalachia. The rates of progressive massive fibrosis, the 
most severe form of black lung disease, are now at epidemic levels, and 
are now being diagnosed in younger miners. Treating these miners will 
require costly medical care.
  Mr. Speaker, allowing the excise tax rate to expire does a great 
disservice to coal miners, their families, and taxpayers.
  I urge my colleagues to oppose this bill.
  Mr. DANNY K. DAVIS of Illinois, Mr. Speaker, again, I stand on this 
Floor and oppose the myopic, Republican mission that asks hard-working 
Americans to pay for wasteful tax cuts for wealthy corporations.
  With baby boomers retiring and needing security, the first Republican 
tax cuts seriously damaged the health of the Medicare Trust Fund. This 
bill is more of the same--exploding the deficit and threatening Social 
Security, Medicaid, and Medicare.
  After decades of wage stagnation--when over 41 million laborers earn 
less than $12 an hour, when almost none of their employers offer health 
insurance, when more than one-quarter of Americans struggle to cover 
housing costs--the Republican bill preferences health care industries 
over lower health care costs for consumers.
  Rather than fixing their Failed Tax Law's harmful provisions toward 
hard-working Americans, this bill makes fixes for industry moguls.
  This bill fails to roll back the double taxation on residents in 
Illinois via the cap on the State and Local Income Tax Deduction.
  This bill fails to restore the personal exemptions taken from 
millions of families with children. This bill fails to help home owners 
whose houses lost value by capping the mortgage interest deduction.
  Rather than helping all Americans affected by disasters, the 
Republicans are picking and choosing which disaster victims that they 
feel deserve relief.
  Rather than uniting Americans, this bill seeks to divide our places 
of worship by allowing churches and religious organizations to make 
political statements.
  People in Chicago expect government to help real people. I oppose 
this dangerous bill that threatens the economic security of our country 
and citizenry.
  The SPEAKER pro tempore. All time for debate has expired.
  Pursuant to House Resolution 1180, the previous question is ordered.
  The question is on the motion offered by the gentleman from Texas 
(Mr. Brady).
  The question was taken; and the Speaker pro tempore announced that 
the ayes appeared to have it.
  Mr. NEAL. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further 
proceedings on this question will be postponed.

                          ____________________