[Congressional Record Volume 165, Number 96 (Monday, June 10, 2019)]
[House]
[Pages H4352-H4364]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           TAXPAYER FIRST ACT

  Mr. LEWIS. Mr. Speaker, I move to suspend the rules and pass the bill 
(H.R. 3151) to amend the Internal Revenue Code of 1986 to modernize and 
improve the Internal Revenue Service, and for other purposes.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 3151

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

     SECTION 1. SHORT TITLE; ETC.

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

Sec. 1. Short title; etc.

                    TITLE I--PUTTING TAXPAYERS FIRST

                Subtitle A--Independent Appeals Process

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

                      Subtitle B--Improved Service

Sec. 1101. Comprehensive customer service strategy.
Sec. 1102. 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. Identity protection personal identification numbers.
Sec. 2006. Single point of contact for tax-related identity theft 
              victims.
Sec. 2007. Notification of suspected identity theft.
Sec. 2008. Guidelines for stolen identity refund fraud cases.
Sec. 2009. Increased penalty for improper disclosure or use of 
              information by preparers of returns.

           Subtitle B--Development of Information Technology

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

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

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

             Subtitle D--Expanded Use of Electronic Systems

Sec. 2301. Electronic filing of returns.
Sec. 2302. Uniform standards for the use of electronic signatures for 
              disclosure authorizations to, and other authorizations 
              of, practitioners.
Sec. 2303. Payment of taxes by debit and credit cards.
Sec. 2304. 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. Prohibition on rehiring any employee of the Internal Revenue 
              Service who was involuntarily separated from service for 
              misconduct.
Sec. 3002. 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--Revenue Provision

Sec. 3201. Increase in penalty for failure to file.

                      TITLE IV--BUDGETARY EFFECTS

Sec. 4001. Determination of budgetary effects.

                    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 Internal Revenue 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 Internal Revenue 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,

[[Page H4353]]

       ``(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 
     Internal Revenue 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 Internal 
     Revenue 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 Internal Revenue shall prescribe procedures 
     for protesting to the Commissioner of Internal Revenue a 
     denial of a request described in subparagraph (A).
       ``(D) Not applicable to frivolous positions.--This 
     paragraph shall not apply to a request for referral to the 
     Internal Revenue Service Independent Office of Appeals which 
     is denied on the basis that the issue involved is a frivolous 
     position (within the meaning of section 6702(c)).
       ``(6) Staff.--
       ``(A) In general.--All personnel in the Internal Revenue 
     Service Independent Office of Appeals shall report to the 
     Chief of Appeals.
       ``(B) Access to staff of office of the chief counsel.--The 
     Chief of Appeals shall have authority to obtain legal 
     assistance and advice from the staff of the Office of the 
     Chief Counsel. The Chief Counsel shall ensure, to the extent 
     practicable, 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 (or the Secretary's delegate) 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. 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

[[Page H4354]]

       ``(II) provide each such person so found with a notice of 
     the seizure and of the person's rights under clause (iv).

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

     SEC. 1202. EXCLUSION OF INTEREST RECEIVED IN ACTION TO 
                   RECOVER PROPERTY SEIZED BY THE INTERNAL REVENUE 
                   SERVICE BASED ON STRUCTURING TRANSACTION.

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

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

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

``Sec. 139H. Interest received in action to recover property seized by 
              the Internal Revenue Service based on structuring 
              transaction.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to interest received on or after the date of the 
     enactment of this Act.

     SEC. 1203. CLARIFICATION OF EQUITABLE RELIEF FROM JOINT 
                   LIABILITY.

       (a) In General.--Section 6015 is amended--
       (1) in subsection (e), by adding at the end the following 
     new paragraph:
       ``(7) Standard and scope of review.--Any review of a 
     determination made under this section shall be reviewed de 
     novo by the Tax Court and shall be based upon--
       ``(A) the administrative record established at the time of 
     the determination, and
       ``(B) any additional newly discovered or previously 
     unavailable evidence.''; and
       (2) by amending subsection (f) to read as follows:
       ``(f) Equitable Relief.--
       ``(1) In general.--Under procedures prescribed by the 
     Secretary, if--
       ``(A) taking into account all the facts and circumstances, 
     it is inequitable to hold the individual liable for any 
     unpaid tax or any deficiency (or any portion of either), and
       ``(B) relief is not available to such individual under 
     subsection (b) or (c),

     the Secretary may relieve such individual of such liability.
       ``(2) Limitation.--A request for equitable relief under 
     this subsection may be made with respect to any portion of 
     any liability that--
       ``(A) has not been paid, provided that such request is made 
     before the expiration of the applicable period of limitation 
     under section 6502, or
       ``(B) has been paid, provided that such request is made 
     during the period in which the individual could submit a 
     timely claim for refund or credit of such payment.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to petitions 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 that is 45 
     days 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, 2020.
       (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

[[Page H4355]]

     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 which is 45 
     days after the date of the enactment of this Act.

     SEC. 1208. LIMITATION ON ACCESS OF NON-INTERNAL REVENUE 
                   SERVICE EMPLOYEES TO RETURNS AND RETURN 
                   INFORMATION.

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

                Subtitle D--Organizational Modernization

     SEC. 1301. OFFICE OF THE NATIONAL TAXPAYER ADVOCATE.

       (a) Taxpayer Advocate Directives.--
       (1) In general.--Section 7803(c) is amended by adding at 
     the end the following new paragraph:
       ``(5) Taxpayer advocate directives.--In the case of any 
     Taxpayer Advocate Directive issued by the National Taxpayer 
     Advocate pursuant to a delegation of authority from the 
     Commissioner of Internal Revenue--
       ``(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 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.--
     Upon request of the National Taxpayer Advocate, the Secretary 
     shall, to the extent practicable, 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 striking ``and'' at 
     the end of subclause (XI), 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; and''.

       (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 
     March 31, 2019.

     SEC. 1302. MODERNIZATION OF INTERNAL REVENUE SERVICE 
                   ORGANIZATIONAL STRUCTURE.

       (a) In General.--Not later than September 30, 2020, the 
     Secretary of the Treasury (or the Secretary's delegate) 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 of Internal Revenue.
       (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 plan described in subsection (a) is submitted to 
     Congress.

                      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

[[Page H4356]]

     such manner, and containing such information as the Secretary 
     may reasonably require.
       ``(2) Priority.--In awarding grants under this section, the 
     Secretary shall give priority to applications which 
     demonstrate--
       ``(A) assistance to applicable taxpayers, with emphasis on 
     outreach to, and services for, such taxpayers,
       ``(B) taxpayer outreach and educational activities relating 
     to eligibility and availability of income supports available 
     through this title, including the earned income tax credit, 
     and
       ``(C) specific outreach and focus on one or more 
     underserved populations.
       ``(3) Amounts taken into account.--In determining matching 
     grants under this section, the Secretary shall only take into 
     account amounts provided by the qualified return preparation 
     program for expenses described in subsection (b).
       ``(d) Program Adherence.--
       ``(1) In general.--The Secretary shall establish procedures 
     for, and shall conduct not less frequently than once every 5 
     calendar years during which a qualified return preparation 
     program is operating under a grant under this section, 
     periodic site visits--
       ``(A) to ensure the program is carrying out the purposes of 
     this section, and
       ``(B) to determine whether the program meets such program 
     adherence standards as the Secretary shall by regulation or 
     other guidance prescribe.
       ``(2) Additional requirements for grant recipients not 
     meeting program adherence standards.--In the case of any 
     qualified return preparation program which--
       ``(A) is awarded a grant under this section, and
       ``(B) is subsequently determined--
       ``(i) not to meet the program adherence standards described 
     in paragraph (1)(B), or
       ``(ii) not to be otherwise carrying out the purposes of 
     this section,
     such program shall not be eligible for any additional grants 
     under this section unless such program provides sufficient 
     documentation of corrective measures established to address 
     any such deficiencies determined.
       ``(e) Definitions.--For purposes of this section--
       ``(1) Qualified return preparation program.--The term 
     `qualified return preparation program' means any program--
       ``(A) which provides assistance to individuals, not less 
     than 90 percent of whom are applicable taxpayers, in 
     preparing and filing Federal income tax returns,
       ``(B) which is administered by a qualified entity,
       ``(C) in which all volunteers who assist in the preparation 
     of Federal income tax returns meet the training requirements 
     prescribed by the Secretary, and
       ``(D) which uses a quality review process which reviews 100 
     percent of all returns.
       ``(2) Qualified entity.--
       ``(A) In general.--The term `qualified entity' means any 
     entity which--
       ``(i) is an eligible organization,
       ``(ii) is in compliance with Federal tax filing and payment 
     requirements,
       ``(iii) is not debarred or suspended from Federal 
     contracts, grants, or cooperative agreements, and
       ``(iv) agrees to provide documentation to substantiate any 
     matching funds provided pursuant to the grant program under 
     this section.
       ``(B) Eligible organization.--The term `eligible 
     organization' means--
       ``(i) an institution of higher education which is described 
     in section 102 (other than subsection (a)(1)(C) thereof) of 
     the Higher Education Act of 1965 (20 U.S.C. 1002), as in 
     effect on the date of the enactment of this section, and 
     which has not been disqualified from participating in a 
     program under title IV of such Act,
       ``(ii) an organization described in section 501(c) and 
     exempt from tax under section 501(a),
       ``(iii) a local government agency, including--

       ``(I) a county or municipal government agency, and
       ``(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) Referrals to low-income taxpayer clinics.--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) 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 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.

[[Page H4357]]

       ``(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 the Treasury, the 
     Treasury Inspector General for Tax Administration, the 
     Comptroller General of the United States, the Department of 
     Justice, the United States Congress, a person with 
     supervisory authority over the employee, or any other person 
     working for the employer who has the authority to 
     investigate, discover, or terminate misconduct, or
       ``(B) to testify, participate in, or otherwise assist in 
     any administrative or judicial action taken by the Internal 
     Revenue Service relating to an alleged underpayment of tax or 
     any violation of the internal revenue laws or any provision 
     of Federal law relating to tax fraud.
       ``(2) Enforcement action.--
       ``(A) In general.--A person who alleges discharge or other 
     reprisal by any person in violation of paragraph (1) may seek 
     relief under paragraph (3) by--
       ``(i) filing a complaint with the Secretary of Labor, or
       ``(ii) if the Secretary of Labor has not issued a final 
     decision within 180 days of the filing of the complaint and 
     there is no showing that such delay is due to the bad faith 
     of the claimant, bringing an action at law or equity for de 
     novo review in the appropriate district court of the United 
     States, which shall have jurisdiction over such an action 
     without regard to the amount in controversy.
       ``(B) Procedure.--
       ``(i) In general.--An action under subparagraph (A)(i) 
     shall be governed under the rules and procedures set forth in 
     section 42121(b) of title 49, United States Code.
       ``(ii) Exception.--Notification made under section 
     42121(b)(1) of title 49, United States Code, shall be made to 
     the person named in the complaint and to the employer.
       ``(iii) Burdens of proof.--An action brought under 
     subparagraph (A)(ii) shall be governed by the legal burdens 
     of proof set forth in section 42121(b) of title 49, United 
     States Code, except that in applying such section--

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

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

     SEC. 1406. CUSTOMER SERVICE INFORMATION.

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

     SEC. 1407. MISDIRECTED TAX REFUND DEPOSITS.

       Section 6402 is amended by adding at the end the following 
     new subsection:
       ``(n) Misdirected Direct Deposit Refund.--Not later than 
     the date which is 6 months after the date of the enactment of 
     the Taxpayer First Act, 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 not 
     transferred to the account of the taxpayer;
       ``(2) coordination with financial institutions for the 
     purpose of--
       ``(A) identifying the accounts to which transfers described 
     in paragraph (1) were made; and
       ``(B) recovery of the amounts so transferred; 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

[[Page H4358]]

     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, 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)''.
       (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. 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. 2006. 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. 2007. 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--
       ``(A) notify the individual of such determination,
       ``(B) provide instructions on how to file a report with law 
     enforcement regarding the unauthorized use,
       ``(C) identify any steps to be taken by the individual to 
     permit law enforcement to access personal information of the 
     individual during the investigation,
       ``(D) provide information regarding actions the individual 
     may take in order to protect the individual from harm 
     relating to the unauthorized use, and
       ``(E) offer identity protection measures to the individual, 
     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,

[[Page H4359]]

       ``(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 of the 
     Treasury (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. 2008. 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 of the Treasury (or 
     the Secretary's delegate), in consultation with the National 
     Taxpayer Advocate, shall develop and implement publicly 
     available guidelines for management of cases involving stolen 
     identity refund fraud in a manner that reduces the 
     administrative burden on taxpayers who are victims of such 
     fraud.
       (b) Standards and Procedures To Be Considered.--The 
     guidelines described in subsection (a) may include--
       (1) standards for--
       (A) the average length of time in which a case involving 
     stolen identity refund fraud should be resolved;
       (B) the maximum length of time, on average, a taxpayer who 
     is a victim of stolen identity refund fraud and is entitled 
     to a tax refund which has been stolen should have to wait to 
     receive such refund; and
       (C) the maximum number of offices and employees within the 
     Internal Revenue Service with whom a taxpayer who is a victim 
     of stolen identity refund fraud should be required to 
     interact in order to resolve a case;
       (2) standards for opening, assigning, reassigning, or 
     closing a case involving stolen identity refund fraud; and
       (3) procedures for implementing and accomplishing the 
     standards described in paragraphs (1) and (2), and measures 
     for evaluating such procedures and determining whether such 
     standards have been successfully implemented.

     SEC. 2009. 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 Internal 
     Revenue.
       ``(2) Centralized responsibility for internal revenue 
     service information technology.--The Commissioner of Internal 
     Revenue (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 Internal Revenue 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, 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.''.

[[Page H4360]]

       (b) Independent Verification and Validation of the Customer 
     Account Data Engine 2 and Enterprise Case Management 
     System.--
       (1) In general.--The Commissioner of Internal Revenue 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 Internal Revenue 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 added by subsection (a)) shall have the same meaning as 
     when used in such section.

     SEC. 2102. INTERNET PLATFORM FOR FORM 1099 FILINGS.

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

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

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

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

       ``In the case of any position which is critical to the 
     functionality of the information technology operations of the 
     Internal Revenue Service--
       ``(1) section 9503 of title 5, United States Code, shall be 
     applied--
       ``(A) by substituting `during the period beginning on the 
     date of the enactment of section 7812 of the Internal Revenue 
     Code of 1986, and ending on September 30, 2025' 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' 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, 2025' 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, 2025' 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 which is 180 
     days 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 2021, 250,
       ``(ii) in the case of calendar year 2021, 100, and
       ``(iii) in the case of calendar years after 2021, 10.
       ``(B) Special rule for partnerships for 2018, 2019, 2020, 
     and 2021.--In the case of a partnership, for any calendar 
     year before 2022, the applicable number shall be--
       ``(i) in the case of calendar year 2018, 200,
       ``(ii) in the case of calendar year 2019, 150,
       ``(iii) in the case of calendar year 2020, 100, and
       ``(iv) in the case of calendar year 2021, 50.
       ``(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:

[[Page H4361]]

       ``(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) Conforming Amendment.--Section 6724(c) is amended by 
     striking ``250 information returns (more than 100 information 
     returns in the case of a partnership having more than 100 
     partners)'' and inserting ``the applicable number (determined 
     under section 6011(e)(5) with respect to the calendar year to 
     which such returns relate) of information returns''.
       (e) 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. 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 the 
     direct managers of such employees;
       (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 the direct managers of such employees; 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. 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. 3002. 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) Other Reports and Returns.--
       (1) Political organizations.--Section 527(j)(7) is amended 
     by striking ``if the organization has'' and all that follows 
     through ``such calendar year''.
       (2) Unrelated business income tax returns.--Section 6011 is 
     amended by redesignating subsection (h) as subsection (i) and 
     by inserting after subsection (g) the following new 
     subsection:
       ``(h) Mandatory e-Filing of Unrelated Business Income Tax 
     Return.--Any organization required to file an annual return 
     under this section which relates to any tax imposed by 
     section 511 shall file such return in electronic form.''.
       (c) Inspection of Electronically Filed Annual Returns.--
     Section 6104(b) 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 that 
     is 2 years after 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 that is 2 years after 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.--If an organization described in subsection 
     (a)(1) or (i) fails to file the annual return or notice 
     required under either subsection for 2 consecutive years, the 
     Secretary shall notify the organization--
       ``(i) that the Internal Revenue Service has no record of 
     such a return or notice from such organization for 2 
     consecutive years, and
       ``(ii) about the revocation that will occur under 
     subparagraph (B) if the organization fails to file such a 
     return or notice by the due date for the next such return or 
     notice required to be filed.

     The notification under the preceding sentence shall include 
     information about how to

[[Page H4362]]

     comply with the filing requirements under subsections (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, 2019.

                     Subtitle C--Revenue Provision

     SEC. 3201. INCREASE IN PENALTY FOR FAILURE TO FILE.

       (a) In General.--The second sentence of subsection (a) of 
     section 6651 is amended by striking ``$205'' and inserting 
     ``$330''.
       (b) Inflation Adjustment.--Section 6651(j)(1) is amended--
       (1) by striking ``2014'' and inserting ``2020'',
       (2) by striking ``$205'' and inserting ``$330'', and
       (3) by striking ``2013'' and inserting ``2019''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to returns required to be filed after December 
     31, 2019.

                      TITLE IV--BUDGETARY EFFECTS

     SEC. 4001. DETERMINATION OF BUDGETARY EFFECTS.

       The budgetary effects of this Act, for the purpose of 
     complying with the Statutory Pay-As-You-Go Act of 2010, shall 
     be determined by reference to the latest statement titled 
     ``Budgetary Effects of PAYGO Legislation'' for this Act, 
     submitted for printing in the Congressional Record by the 
     Chairman of the House Budget Committee, provided that such 
     statement has been submitted prior to the vote on passage.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Georgia (Mr. Lewis) and the gentleman from Texas (Mr. Brady) each will 
control 20 minutes.
  The Chair recognizes the gentleman from Georgia.


                             General Leave

  Mr. LEWIS. Mr. Speaker, I ask unanimous consent that all Members may 
have 5 legislative days in which to revise and extend their remarks and 
include extraneous material on the measure.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Georgia?
  There was no objection.
  Mr. LEWIS. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise in support of H.R. 3151, the Taxpayer First Act. 
Mr. Speaker, this is not a Republican or a Democratic bill. It is an 
American one.
  Let me begin by thanking Chairman Neal, Ranking Member Brady, the 
Oversight Subcommittee Ranking Member Kelly, and all the Members who 
joined us on this bill.
  I would also like to recognize Chairman Grassley and Ranking Member 
Wyden and their staff who were our Senate partners on this necessary 
effort. In particular, I would like to thank our staff for their hard, 
great, and good work.
  Mr. Speaker, I am proud of the process and the product. The record 
must be clear: Members of the House and Senate spent many years 
researching ideas to help taxpayers. The Oversight Subcommittee held 14 
hearings and roundtables. We reached out to taxpayers and stakeholders. 
We have asked questions and listened to the responses. We asked 
Democratic and Republican Members to provide feedback. We even opened a 
public comment period on the draft bill. We came together. We studied, 
we listened, and we respected the taxpayer.
  Mr. Speaker, this has not been easy. We worked hard to correct 
misinformation that this bill would tie the hands of the IRS and hurt 
taxpayers' options. During a time when there is so much tension and 
rush to judgment, our coalition remained thoughtful and fair.
  After the House passed this legislation earlier this year, new 
information came out, and I am proud that we came together and 
requested an investigation and the IRS responded quickly and took 
action.
  Mr. Speaker, despite every single challenge, we remained committed to 
bipartisanship and to the American taxpayer.
  I want to share a few examples of the good this bill does. The 
Taxpayer First Act authorizes $30 million in matching grants for the 
Volunteer Income Tax Assistance program which helps low- and moderate-
income taxpayers complete and file their taxes. This bill also protects 
certain low-income taxpayers from the private debt collection program. 
In addition, some of the most popular parts of the bill include new 
initiatives to protect and serve taxpayers who are victims of identity 
theft.
  Mr. Speaker, the Taxpayer First Act serves as an example of a good 
and thoughtful policy that Congress can produce. We took our time. We 
studied, and we stayed the course. We refused to give up, and we 
refused to give in. Mr. Speaker, this bill should be an inspiration to 
us all.
  Mr. Speaker, I urge all of my colleagues to support the Taxpayer 
First Act, and I reserve the balance of my time.
                                         House of Representatives,


                                  Committee on Ways and Means,

                                    Washington, DC, June 10, 2019.
     Hon. Nita M. Lowey,
     Chairwoman, Committee on Appropriations,
     Washington, DC.
       Dear Chairwoman Lowey: Thank you for consulting with the 
     Committee on Ways and Means on provisions of H.R. 3151, the 
     Taxpayer First Act, for which the Committee on Appropriations 
     has a jurisdictional interest. I appreciate your agreement to 
     not pursue a sequential referral or assert any point of order 
     so that the legislation may proceed expeditiously to the 
     House floor.
       The Committee on Ways and Means confirms our mutual 
     understanding that your Committee does not waive any 
     jurisdiction over the subject matter contained in this or 
     similar legislation, and your Committee will be appropriately 
     consulted and involved as the bill or similar legislation 
     moves forward so that we may address any remaining issues 
     within your Committee's jurisdiction.
       I will ensure that this exchange of letters is included in 
     the Congressional Record during floor consideration of the 
     bill. I appreciate your cooperation regarding this 
     legislation and look forward to continuing to work with you 
     on this measure and future legislation.
           Sincerely,
                                                  Richard E. Neal,
     Chairman.
                                  ____

                                         House of Representatives,


                                  Committee on Appropriations,

                                    Washington, DC, June 10, 2019.
     Hon. Richard Neal,
     Chairman, Committee on Ways and Means, House of 
         Representatives,
     Washington, DC.
       Dear Chairman Neal: I am writing with respect to H.R. 3151, 
     the ``Taxpayer First Act of 2019.'' As a result of your 
     having consulted with us on provisions on which the Committee 
     on Appropriations has a jurisdictional interest, I will not 
     request a sequential referral on this measure, an opportunity 
     to raise a point of order under clause 4 of rule XXI of the 
     Rules of the House, or further amendment to the bill when it 
     is considered on the House floor.
       The Committee on Appropriations takes this action with the 
     mutual understanding that we do not waive any jurisdiction 
     over the subject matter contained in this or similar 
     legislation, we do not agree to future suspension or waivers 
     of the House rule restricting the carrying of appropriations 
     in measures and amendments thereto, and the Committee will be 
     appropriately consulted and involved as the bill or other 
     legislation carrying appropriations moves forward so that we 
     may address any issues within our jurisdiction and provisions 
     giving rise to a point of order--regardless of whether a 
     measure is similar to legislation passed by the House in a 
     previous Congress, or represents the product of negotiation 
     between parties or chambers.
       The Committee also reserves the right to seek appointment 
     of an appropriate number of conferees to any House-Senate 
     conference involving this or similar legislation, and request 
     your support for such a request.
       Finally, I would appreciate your response to this letter 
     confirming this understanding, and would ask that a copy of 
     our exchange of letters on this matter be included in the 
     Congressional Record during floor consideration of H.R. 3151.
           Sincerely,
                                                    Nita M. Lowey,
     Chairwoman.
                                  ____

                                         House of Representatives,


                                  Committee on Ways and Means,

                                    Washington, DC, June 10, 2019.
     Hon. Maxine Waters,
     Chairwoman, Committee on Financial Services, Washington, DC.
       Dear Chairwoman Waters: Thank you for your letter regarding 
     H.R. 3151, Taxpayer First Act. As you know, the bill was 
     referred primarily to the Committee on Ways and Means, with 
     an additional referral to the Committee on Financial 
     Services.
       I thank you for agreeing to waive consideration of 
     provisions that fall within your Committee's Rule X 
     jurisdiction. The Committee on Ways and Means confirms our 
     mutual understanding that your Committee does not waive any 
     jurisdiction over the subject matter contained in this or 
     similar legislation, and your Committee will be appropriately 
     consulted and involved as the bill or similar legislation 
     moves forward so that we may address any remaining issues 
     within your Committee's jurisdiction.
       I will ensure that this exchange of letters is included in 
     the Congressional Record during floor consideration of the 
     bill. I appreciate your cooperation regarding this 
     legislation and look forward to continuing to

[[Page H4363]]

     work with you as this measure moves through the legislative 
     process.
           Sincerely,
                                                  Richard E. Neal,
     Chairman.
                                  ____

                                         House of Representatives,


                              Committee on Financial Services,

                                     Washington, DC, June 7, 2019.
     Hon. Richard E. Neal,
     Chairman, Committee on Ways and Means,
     Washington, DC.
       Dear Mr. Chairman: I am writing concerning H.R. 3151, the 
     ``Taxpayers First Act of 2019.'' Because you have been 
     working with the Committee on Financial Services concerning 
     provisions in the bill that fall within our Rule X 
     jurisdiction, I agree to forgo formal consideration of the 
     bill so that it may proceed expeditiously to the House Floor.
       The Committee on Financial Services takes this action to 
     forego formal consideration of H.R. 3151 with our mutual 
     understanding that, by foregoing formal consideration of H.R. 
     3151 at this time, we do not waive any jurisdiction over the 
     subject matter contained in this or similar legislation, and 
     that our Committee will be appropriately consulted and 
     involved as this or similar legislation moves forward. Our 
     Committee also reserves the right to seek appointment of an 
     appropriate number of conferees to any House-Senate 
     conference involving this or similar legislation and request 
     your support for any such request.
       Finally, I would appreciate your response to this letter 
     confirming this understanding, and I would ask that a copy of 
     our exchange of letters on this matter be included in the 
     Congressional Record during Floor consideration of H.R. 3151.
           Sincerely,
                                                    Maxine Waters,
                                                       Chairwoman.

  Mr. BRADY. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, this bill represents what this body can accomplish when 
we work together across the aisle. It is true that no one gets 
everything they want, but we put in the effort, we did the hard work, 
and we talked to each other, and we came together to find solutions on 
common ground.
  I am honored to have cosponsored the Taxpayer First Act with my 
friend from Georgia, Oversight Subcommittee Chairman   John Lewis. This 
is the fifth time this bill will pass the House with strong bipartisan 
support, and I am proud of the House leadership--Democrats and 
Republicans together--initiated first by Mr. Lewis and Mr. Roskam of 
Illinois and Mr. Lewis and Ms. Jenkins of Kansas, and now Mr. Lewis and 
Mr. Kelly. This will be the fifth time this passes the House, which 
tells you the importance of this legislation, Mr. Speaker.
  I want to especially thank Chairman Lewis for his commitment to 
taxpayers and for working with us on behalf of the American people.
  The IRS should be a customer service agency that focuses on treating 
taxpayers with respect and dignity. Over the last several years, the 
Ways and Means Committee held a number of bipartisan hearings to 
discover what is working and what isn't at the IRS. As we crafted this 
legislation together to redesign the IRS for the first time in two 
decades, we focused on improving the relationship between the taxpayer 
and the agency.
  We all agree the IRS should prioritize taxpayers' rights and they 
should be a resource--not a threat--to Americans. This bill achieves 
these goals.
  After passage of the Taxpayer First Act, Americans will interact with 
an IRS that carries out customer service more like our businesses, 
because this bill will improve the support Americans receive online, in 
person, and on the phone.
  This bill takes a number of steps to move the IRS into the 21st 
century. First, the IRS will have to come up with a customer service 
plan to better serve taxpayers because no American should fear 
contacting the IRS for help.
  We also together rein in the abuses. We are overhauling the IRS' 
enforcement tools so families and small businesses don't have property 
unfairly seized. The Constitution guarantees Americans the right to due 
process and protection from unreasonable searches and seizures. In 
hearings led by Chairman Lewis and others, we have heard stories from 
across the country of the IRS abusing these rights. Under this bill, 
that stops.
  Third, the Taxpayer First Act recasts the IRS as our tax 
administrator rather than simply an enforcement agency. We will better 
protect taxpayers from enforcement abuses by creating an independent 
appeals office. This will give taxpayers a fair and impartial review of 
disputes they have with the IRS. The bill also ensures taxpayers have 
the same access to information as the IRS, putting our taxpayers on a 
level playing field.
  We are revamping the IRS' ancient technology and better positioning 
the agency to combat identity theft and cyber threats. IRS employees, 
as hard as they work, are currently using technology that is severely 
outdated. Some of it dates back to the 1960s. This bill requires 
accountability by the IRS for the billions of dollars in funding it is 
given for IT each year. That accountability extends to ensuring 
taxpayer information is protected and is safe from cybercriminals 
looking to steal through taxpayer refunds. This bill also strengthens 
the IRS' partnership with States and the private sector to combat these 
threats.
  Finally, this bill requires the IRS to bring back to Congress the 
complete restructuring of the agency focused on these principles of 
taxpayer first customer service, reining in those abuses, and 
protecting our private taxpayer information, making sure there is a 
fair appeals process in these disputes with the IRS.
  Taken together, these reforms will greatly benefit Americans each 
year during tax season and throughout the year.
  Mr. Speaker, I urge support of H.R. 3151, and I reserve the balance 
of my time.
  Mr. LEWIS. Mr. Speaker, I yield 2 minutes to the gentlewoman from 
California (Ms. Hill).
  Ms. HILL of California. Mr. Speaker, I rise in support of H.R. 3151, 
the Taxpayer First Act, which is a very exciting piece of legislation 
because who doesn't get excited about taxes?
  However, in all seriousness, we should get excited when paying taxes 
or filing our taxes becomes easier and better for the American people.
  I am so thrilled to be here today to offer my support, and I am 
beyond grateful that my concerns with the free file provision were 
heard and acted upon.
  I am beyond grateful to Congressman Lewis' leadership on this 
legislation which will save the government money, protect low-income 
individuals, and give the IRS resources to offer many additional much-
needed services. I also want to thank the Congressman's staff and the 
Ways and Means Committee staff for working with my team--who also 
deserve a great deal of thanks--to make this happen. It is an 
incredible example of the collaboration that can happen to positively 
affect peoples' lives, and I cannot begin to express my gratitude that 
such a long-term, well-respected leader such as   John Lewis took my 
concerns into consideration and involved me in the process, even though 
I am a lowly freshman.
  The fact that we were able to get this provision resolved is showing 
how Congress is changing and showing how we are taking power away from 
corporations and special interests and back into the hands of regular 
people. I am proud to be part of that effort.
  Mr. Speaker, I urge all of my colleagues to support this bill.
  Mr. BRADY. Mr. Speaker, I yield myself the balance of my time.
  In closing, this bipartisan bill puts an emphasis on the IRS' better 
serving Americans and makes sure that it is customer focused. It reins 
in the abuses, requires the IRS to better protect our privacy, creates 
an independent appeals process, makes sure that taxpayers are put on 
the same level playing field as the agency, and requires them to bring 
back a complete restructuring plan to Congress.

  I am so appreciative of the work of our Democrat colleagues and 
Chairman Lewis, especially, coming together again today to support 
these reforms to the IRS and showing our constituents that we put their 
interests ahead of Washington.
  Again, Mr. Speaker, I strongly urge support of H.R. 3151, and I yield 
back the balance of my time.
  Mr. LEWIS. Mr. Speaker, I yield myself the balance of my time.
  Mr. Speaker, the Taxpayer First Act is a bipartisan bill in both the 
House and in the Senate. This bill will improve the Internal Revenue 
Service and help taxpayers. This is a good and necessary bill.
  Again, I would like to thank the ranking member, Mr. Brady, and

[[Page H4364]]

thank Mr. Kelly in his absence, Chairman Neal, and our staff for all of 
their hard and good work on this important bill.
  Mr. Speaker, I urge all of my colleagues on both sides of the aisle 
to support the Taxpayer First Act, and I yield back the balance of my 
time.
  Ms. JACKSON LEE. Mr. Speaker, I rise in strong support of H.R. 3151, 
the ``Taxpayer First Act of 2019.''
  H.R. 3151 aims to amend the Internal Revenue Code of 1986 to 
modernize and improve the Internal Revenue Service, and for other 
provisions.
  The bill would create an independent means for taxpayers to appeal 
actions of the IRS, limits the capacity of private debt collectors to 
target low-income citizens, allows taxpayers to request an 
identification protection PIN number to protect themselves from 
identity theft, and creates a single point of contact so that taxpayer 
conversations with IRS agents can be documented and tracked.
  It is critical that we amend the Internal Revenue Code because we 
have a duty to our constituents to improve their contact with the 
Internal Revenue Service concerning appeals, identification protection, 
and financial inequity.
  This legislation also codifies the popular Volunteer Income Tax 
Assistance Program and authorizes $30 million in matching grants for 
the program.
  When enacted, H.R. 3151 will create a better framework for the 
Internal Revenue Service which will in turn ensure that American 
taxpayers are at the forefront of our agenda.
  Mr. Speaker, I urge my colleagues to join me in supporting H.R. 3151 
to amend the Internal Revenue Code of 1986 bringing it into the 21st 
century.


 =========================== NOTE =========================== 

  
  June 10, 2019, on page H4364, the following appeared: A motion 
to reconsider was laid on the table. Ms. JACKSON LEE. Mr. Speaker, 
I rise in strong support of H.R. 3151, the ``Taxpayer First Act of 
2019.'' [ETC . . .]
  
  The online version has been corrected to show the Jackson Lee 
General Leave Statement in the proper position in debate.


 ========================= END NOTE ========================= 


  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Georgia (Mr. Lewis) that the House suspend the rules and 
pass the bill, H.R. 3151.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill was passed.
  A motion to reconsider was laid on the table.

                          ____________________