[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.
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