26 U.S.C. 6402(a)changedby S. 5441 Sec. 106(a)
(a) General rule. In the case(1) Authority.— Except as provided in paragraph (2), in the case of any overpayment, the Secretary, within the applicable period of limitations, may credit the amount of such overpayment, including any interest allowed thereon, against any liability in respect of an internal revenue tax on the part of the person who made the overpayment and shall, subject to subsections (c), (d), (e), and (f), refund any balance to such person.
The bill says: by striking "In the case" and inserting the following:
Bill text · Current law (26 U.S.C. 6402)
26 U.S.C. 6402(a)added (2)by S. 5441 Sec. 106(a)
(2) Special rule for certain individuals.— In the case of an overpayment with respect to any taxable year for which a credit is allowed to an applicable taxpayer under section 32, the Secretary shall, subject to subsections (c), (d), (e), and (f), refund such overpayment in an amount not to exceed the amount of the credit allowed under such section for such taxable year.(3) Applicable taxpayer.— For purposes of paragraph (2), the term applicable taxpayer means a taxpayer who was classified by the Secretary as currently not collectible (within the meaning of section 6343(e)) prior to the date on which the refund was requested by the taxpayer.
The bill says: by adding at the end the following new paragraphs:
Bill text · Current law (26 U.S.C. 6402)
26 U.S.C. 6159(f)changedby S. 5441 Sec. 107(a)
The bill says: Section 6159(f) is amended by striking paragraph (2) and inserting the following:
Bill text · Current law (26 U.S.C. 6159)
26 U.S.C. 7524changedby S. 5441 Sec. 109(a)
The bill says: in the heading, by striking "Annual notice" and inserting "Notice",
Bill text · Current law (26 U.S.C. 7524)
26 U.S.C. 7524changedby S. 5441 Sec. 109(a)
Not less often than annually(a) In general.— Except as provided in subsection (c), not less often than quarterly, the Secretary shall send a written notice to each taxpayer who has a tax delinquent account of the amount of the tax delinquency as of the date of the notice.
The bill says: by striking "Not less often than annually" and inserting the following:
Bill text · Current law (26 U.S.C. 7524)
26 U.S.C. 7524added (b)by S. 5441 Sec. 109(a)
(b) Information on penalties and interest.— The notice described in subsection (a) shall include—(1) an estimate of the amount of penalties and interest that may accrue if the delinquent tax debt is not fully paid within the period remaining under section 6502(a), and(2) programs and services that can provide assistance to the taxpayer.(c) Exception.— The requirement under subsection (a) shall not apply—(1) during any period in which an agreement described in section 6159(a) or an accepted offer-in-compromise (as described in section 7122) is in effect, or(2) in the case of a taxpayer for which the Secretary has determined that the tax is not collectible (within the meaning of section 6343(e)).
The bill says: by adding at the end the following:
Bill text · Current law (26 U.S.C. 7524)
26 U.S.C. 7526(c)rewrittenby S. 5441 Sec. 110(a)
(5) Requirement of matching funds.—(A) In general.— With respect to any grant provided to a low-income taxpayer clinic under this section, such clinic shall provide matching funds equal to the applicable percentage of the amount of such grant.(B) Matching funds.—(i) In general.— For purposes of this paragraph, the term matching funds may include—(I) the salary (including fringe benefits) of individuals performing services for the low-income taxpayer clinic, and(II) the cost of equipment used in the low-income taxpayer clinic.(ii) Exclusion.— For purposes of this paragraph, the term matching funds shall not include any indirect expenses, such as general overhead of the institution sponsoring the low-income taxpayer clinic.(C) Applicable percentage.— For purposes of subparagraph (A), the applicable percentage shall be 100 percent, except that the Secretary may establish a lower percentage (not below 25 percent) if the Secretary determines that such percentage would expand the coverage of the low-income taxpayer clinic to additional taxpayers.
The bill says: Paragraph (5) of section 7526(c) is amended to read as follows:
Bill text · Current law (26 U.S.C. 7526)
26 U.S.C. 7122(b)changedby S. 5441 Sec. 111(a)
(b) Record. Whenever a compromise is made by the Secretary in any casein any case which the Secretary determines presents a significant legal issue, there shall be placed on file in the office of the Secretary the opinion of the General Counsel for the Department of the Treasury, or the Counsel’s delegate, there shall be placed on file in the office of the Secretary the opinion of the General Counsel for the Department of the Treasury or his delegate, with his reasons therefor, with a statement of— (1) The amount of tax assessed, (2) The…
The bill says: Section 7122(b) is amended by striking "in any case" and all that follows through "his delegate" and inserting "in any case which the Secretary determines presents a significant legal issue, there shall be placed on file in the office of the Secretary the opinion of the General Counsel for the Department of the Treasury, or the Counsel’s delegate".
Bill text · Current law (26 U.S.C. 7122)
26 U.S.C. 7122(b)changedby S. 5441 Sec. 111(b)
The bill says: Section 7122(b) is amended by striking the second and third sentences.
Bill text · Current law (26 U.S.C. 7122)
26 U.S.C. 6751(b)changedby S. 5441 Sec. 112(a)
(1) In general.— No penalty under this title shall be assessed, and no disallowance period shall take effect, unless—(A) the decision (as defined by the Secretary in regulations) to apply such penalty or disallowance period, as applicable, is personally approved (in writing on an electronic form) by—(i) the immediate supervisor of the individual making such decision, or(ii) the Internal Revenue Service Office of Servicewide Penalties (or any successor organization), and(B) the approval described in subparagraph (A) is obtained on or before the date any appealable notice is sent to the taxpayer regarding the application of such penalty or disallowance period.
The bill says: by striking paragraph (1) and inserting the following:
Bill text · Current law (26 U.S.C. 6751)
26 U.S.C. 6751(b)added (3)by S. 5441 Sec. 112(a)
(3) Appealable notice.— For purposes of this subsection, the term appealable notice means the first written notice issued to a taxpayer that provides the taxpayer an opportunity to—(A) appeal the decision to the Internal Revenue Service Independent Office of Appeals, or(B) petition a Federal court for review of the decision.
The bill says: by adding at the end the following:
Bill text · Current law (26 U.S.C. 6751)
26 U.S.C. 6751added (d)by S. 5441 Sec. 112(b)
(d) Disallowance period.—(1) In general.— For purposes of this section, the term disallowance period means—(A) with respect to any credit under section 24, the period determined under section 24(g)(1),(B) with respect to any credit under section 25A, the period determined under section 25A(b)(4)(A), and(C) with respect to any credit under section 32, the period determined under section 32(k)(1).(2) Approval required for disallowance period automatically calculated through electronic means.— With respect to the application of any disallowance period, subsection (b)(2)(B) shall not apply.
The bill says: Section 6751 is amended by adding at the end the following new subsection:
Bill text · Current law (26 U.S.C. 6751)
26 U.S.C. 7122added (h)by S. 5441 Sec. 113(a)
(h) Return amounts collected in excess of payment amount of accepted offer-in-compromise.—(1) In general.— Subject to paragraph (2), in the case of any taxpayer for which an offer-in-compromise has been accepted under this section, any proceeds collected with respect to the Federal income tax liability that is the subject of the accepted offer-in-compromise which are in excess of any remaining payments scheduled under such compromise shall be transferred to the taxpayer.(2) Exception.— Paragraph (1) shall not apply if—(A) the taxpayer and the Secretary have specifically agreed otherwise, or(B) the Secretary has—(i) determined that, under the terms of the compromise, such compromise is in default, and(ii) elected to terminate such compromise.
The bill says: Section 7122 is amended by adding at the end the following:
Bill text · Current law (26 U.S.C. 7122)
26 U.S.C. 6343(a)(1)(D)changedby S. 5441 Sec. 113(b)
(D) the Secretary has determined that such levy is creating an economic hardship due to the financial condition of the taxpayer, or
The bill says: in subparagraph (D), by striking "or" at the end,
Bill text · Current law (26 U.S.C. 6343)
26 U.S.C. 6343(a)(1)(E)changedby S. 5441 Sec. 113(b)
(E) the fair market value of the property exceeds such liability and release of the levy on a part of such property could be made without hindering the collection of such liability., or
The bill says: in subparagraph (E), by striking the period at the end and inserting ", or", and
Bill text · Current law (26 U.S.C. 6343)
26 U.S.C. 6343(a)(1)added (F)by S. 5441 Sec. 113(b)
(F) subject to subsection (h)(2) of section 7122, an offer-in-compromise is accepted under such section with respect to the liability for which the levy was imposed.
The bill says: by adding at the end the following subparagraph:
Bill text · Current law (26 U.S.C. 6343)
26 U.S.C. 6343(d)(2)(C)changedby S. 5441 Sec. 113(b)
(C) the return of such property will facilitate the collection of the tax liability, or
The bill says: in subparagraph (C), by striking "or" at the end,
Bill text · Current law (26 U.S.C. 6343)
26 U.S.C. 6343(d)(2)(D)changedby S. 5441 Sec. 113(b)
The bill says: in subparagraph (D), by striking the comma at the end and inserting ", or", and
Bill text · Current law (26 U.S.C. 6343)
26 U.S.C. 6343(d)(2)added (E)by S. 5441 Sec. 113(b)
(E) subject to subsection (h)(2) of section 7122, an offer-in-compromise is accepted under such section with respect to the liability for which the levy was imposed,
The bill says: by adding at the end the following subparagraph:
Bill text · Current law (26 U.S.C. 6343)
26 U.S.C. 6343(b)changedby S. 5441 Sec. 114(a)
The bill says: Section 6343(b) is amended, in the flush text following paragraph (3), by striking "the date of such levy" and inserting "the date that the Secretary received any such amount".
Bill text · Current law (26 U.S.C. 6343)
26 U.S.C. 6213(b)(2)(A)changedby S. 5441 Sec. 203(a)
The bill says: Section 6213(b)(2)(A) is amended by inserting "(120 days in the case of a notice addressed to a person outside the United States)" after "60 days".
Bill text · Current law (26 U.S.C. 6213)
26 U.S.C. 6671(a)changedby S. 5441 Sec. 204(a)
(a) Penalty assessed as tax. The penalties and liabilities provided by this subchapter(1) In general.— Any penalties provided by this title, including the penalties and liabilities provided by this subchapter, shall be paid upon notice and demand by the Secretary, and shall be assessed and collected in the same manner as taxes. Except as otherwise provided, any reference in this title to "tax" imposed by this title shall be deemed also to refer to the penalties and liabilities provided by this subchapter.
The bill says: by striking "The penalties and liabilities provided by this subchapter" and inserting the following:
Bill text · Current law (26 U.S.C. 6671)
26 U.S.C. 6671(a)changedby S. 5441 Sec. 204(a)
(a) Penalty assessed as tax. The penalties and liabilities provided by this subchapter shall be paid upon notice and demand by the Secretary, and shall be assessed and collected in the same manner as taxes. Except as otherwise provided, any reference in this title to "tax" imposed by this title shall be deemed also to refer to the penalties and liabilities provided by this subchapter.the penalties provided by this title, including the penalties and liabilities provided by this subchapter.
The bill says: by striking "the penalties and liabilities provided by this subchapter." and inserting "the penalties provided by this title, including the penalties and liabilities provided by this subchapter.", and
Bill text · Current law (26 U.S.C. 6671)
26 U.S.C. 6671(a)added (2)by S. 5441 Sec. 204(a)
(2) Exception.— Paragraph (1) shall not apply to any penalty not provided by this subchapter if such penalty is a penalty for which a civil or criminal action is prescribed as the method of collection or has been consistently treated by the Secretary before the date of the enactment of this paragraph as such a penalty.
The bill says: by adding at the end the following new paragraph:
Bill text · Current law (26 U.S.C. 6671)
26 U.S.C. 7456(a)rewrittenby S. 5441 Sec. 301
(a) In general.—(1) Administration of oaths.— For the efficient administration of the functions vested in the Tax Court or any division thereof, any judge or special trial judge, the clerk or the clerk’s deputies, as such, or any other employee of the Tax Court designated in writing for the purpose by the chief judge, may administer oaths or affirmations.(2) Examination.— Any judge or special trial judge may examine parties or witnesses.(3) Subpoena authority.— Any judge or special trial judge may require, by subpoena ordered by the Tax Court or any division thereof and signed by the judge or special trial judge (or by the clerk of the Tax Court or by any other employee of the Tax Court when acting as deputy clerk), any of the following:Any such subpoena shall be issued and served, and compliance therewith shall be compelled, as provided in the rules and orders of the Tax Court.(A) The attendance and testimony of parties or witnesses.(B) The production of books, papers, documents, electronically stored information, or tangible things from any place in the United States by any party or witness having custody or control thereof for purposes of discovery or for use of the things produced as evidence in accordance with the rules and orders of the Tax Court.(4) Depositions.— Pursuant to rules and orders of the Court, the deposition of a witness may be taken before any designated individual competent to administer oaths under this title. Any deposition testimony shall be reduced to writing by the individual taking the deposition, or under such individual’s direction, and shall be subscribed by the deponent.
The bill says: Section 7456(a) is amended to read as follows:
Bill text · Current law (26 U.S.C. 7456)
26 U.S.C. 7481changedby S. 5441 Sec. 302(1)
(a) Reviewable decisions. Except as provided in subsections (b), (c), and (d),(d), and (e), the decision of the Tax Court shall become final— (1) Timely notice of appeal not filed. Upon the expiration of the time allowed for filing a notice of appeal, if no such notice has been duly filed within such time; or (2) Decision…
The bill says: by striking "and (d)," in subsection (a) and inserting "(d), and (e)," and
Bill text · Current law (26 U.S.C. 7481)
26 U.S.C. 7481added (e)by S. 5441 Sec. 302(2)
(e) Relief from a judgment or order.—(1) Corrections based on clerical mistakes; oversights and omissions.—(A) In general.— The Tax Court may correct a clerical mistake, or a mistake arising from oversight or omission, whenever one is found in a judgment, order, or other part of the record. The Tax Court may do so on motion or on its own, with or without notice.(B) Appellate court leave required on appeal.— After an appeal has been docketed in the appellate court, and while such appeal is pending, any such mistake may be corrected only with the appellate court’s leave.(2) Grounds for relief from a final judgment or order.— On motion and just terms, the Tax Court may relieve a party or its legal representative from a final judgment or order for any of the following reasons:(A) Mistake, inadvertence, surprise, or excusable neglect.(B) Newly discovered evidence that, with reasonable diligence, could not have been discovered in time to move for a new trial under rules prescribed by the Court and that would have a reasonable likelihood of changing the outcome.(C) Fraud (whether previously called intrinsic or extrinsic), misrepresentation, or misconduct by an opposing party.(D) The judgment is void.(E) Any other circumstance where justice so requires.(3) Timing and effect of the motion.—(A) Timing.— A motion under paragraph (2)—(i) must be made within a reasonable time, and(ii) in the case of a reason described in subparagraphs (A), (B), or (C), not later than 1 year after the entry of the judgment or order.(B) Effect on finality.— While pending, any such motion does not affect the judgment’s finality or suspend its operation.(4) Other powers to grant relief.— This subsection shall not limit the Tax Court’s power to set aside a judgment for fraud on the Tax Court.(5) Court of appeals jurisdiction.— If the Tax Court provides relief from a judgment or order that is otherwise final under this section, either or both parties may obtain review of such relief by filing a notice of appeal under this subchapter within 90 days of the Court’s judgment or order directing such relief.
The bill says: by adding at the end the following new subsection:
Bill text · Current law (26 U.S.C. 7481)
26 U.S.C. 7443A(b)renumberedby S. 5441 Sec. 303(a)
(b) Proceedings which may be assigned to special trial judges. The chief judge may assign— (1) any declaratory judgment proceeding, (2) any proceeding under section 7463, (3) any proceeding where neither the amount of the deficiency placed in dispute (within the meaning of section 7463) nor the amount of any claimed overpayment exceeds $50,000, (4) any proceeding under section 6320 or 6330, (5) any proceeding under section 7436(c), (6) any proceeding under section 7623(b)(4), and(7) upon the consent of the parties, and pursuant to rules promulgated by the Tax Court, any proceeding not described in paragraphs (1) through (6), and (7) any other proceeding which the chief judge may designate,
The bill says: Section 7443A(b) is amended by striking "and" at the end of paragraph (6), by redesignating paragraph (7) as paragraph (8), and by inserting after paragraph (6) the following new paragraph:
Bill text · Current law (26 U.S.C. 7443A)
26 U.S.C. 7443A(c)changedby S. 5441 Sec. 303(b)
(c) Authority to make court decision. The court may authorize a special trial judge to make the decision of the court with respect to any proceeding described in paragraph (1), (2), (3), (4), (5), or (6)(6), or (7) of subsection (b), subject to such conditions and review as the court may provide.
The bill says: Section 7443A(c) is amended by striking "or (6)" and inserting "(6), or (7)".
Bill text · Current law (26 U.S.C. 7443A)
26 U.S.C. 7443Aadded (f)by S. 5441 Sec. 303(c)
(f) Incidental powers.— A special trial judge appointed under this section shall have the independent power to punish for contempt of the authority of the Tax Court as provided in section 7456(c), except the sentence imposed by such a special trial judge for any contempt shall not exceed the penalties for a Class C misdemeanor as set forth in sections 3571(b)(6) and 3581(b)(8) of title 18, United States Code. This subsection shall not be construed to limit the authority of a special trial judge to order sanctions under any other statute or any rule of the Tax Court prescribed pursuant to section 7453.
The bill says: Section 7443A is amended by adding at the end the following new subsection:
Bill text · Current law (26 U.S.C. 7443A)
26 U.S.C. 6212(a)changedby S. 5441 Sec. 305(a)
(a) In general. If the(1) Notice.— If the Secretary determines that there is a deficiency in respect of any tax imposed by subtitles A or B or chapter 41, 42, 43, or 44 he is authorized to send notice of such deficiency to the taxpayer by certified mail or registered mail. Such notice shall include a notice to the taxpayer of the taxpayer's right to contact a local office of the taxpayer advocate and the location and phone number of the appropriate office.
The bill says: by striking "If the" and inserting the following:
Bill text · Current law (26 U.S.C. 6212)
26 U.S.C. 6212(a)changedby S. 5441 Sec. 305(a)
(a) In general. If the Secretary determines that there is a deficiency in respect of any tax imposed by subtitles A or B or chapter 41, 42, 43, or 44 he is authorized to send notice of such deficiency to the taxpayer by certified mail or registered mail. Such notice shall include a notice to the taxpayer of the taxpayer's right to contact a local office of the taxpayer advocate and the location and phone number of the appropriate office.
The bill says: by striking "Such notice shall include a notice" and inserting the following:
Bill text · Current law (26 U.S.C. 6212)
26 U.S.C. 6212(a)changedby S. 5441 Sec. 305(a)
The bill says: by striking period at the end of the second sentence and inserting ", and", and
Bill text · Current law (26 U.S.C. 6212)
26 U.S.C. 6212(a)added (B)by S. 5441 Sec. 305(a)
(B) in any case in which such deficiency for a taxable year is attributable to the denial of a credit under section 24, 25A, or 32, a statement—(i) identifying the credit or credits which are denied and providing the grounds for each such denial,(ii) informing the taxpayer that, unless the denial is overturned on appeal, the taxpayer will not be able to claim such credit for any subsequent taxable year unless the taxpayer provides information required by the Secretary to demonstrate eligibility for the credit, and(iii) in any case in which the Secretary has made a determination to impose a disallowance period under section 24(g)(1), 25A(b)(4)(A), or 32(k)(1), providing the grounds for such disallowance period (and the length of the disallowance period unless overturned on appeal).
The bill says: by adding at the end the following new subparagraph:
Bill text · Current law (26 U.S.C. 6212)
26 U.S.C. 6214renumberedby S. 5441 Sec. 305(b)
(e) Jurisdiction with respect to multi-Year bans with respect to certain credits.—(1) In general.— The Tax Court shall have jurisdiction—(A) to redetermine the imposition of any disallowance period with respect to any credit under section 24, 25A, or 32 for the taxable year in which such disallowance period was imposed if the deficiency relates to such taxable year, and(B) to determine whether any such disallowance period should be imposed if claim therefor is asserted by the Secretary in the answer or an amended answer filed in accordance with the rules of the Tax Court.(2) Disallowance period.— For purposes of this subsection, the term disallowance period has the meaning given such term under section 6751(d).
The bill says: Section 6214 is amended by redesignating subsection (e) as subsection (f) and by inserting after subsection (d) the following new subsection:
Bill text · Current law (26 U.S.C. 6214)
26 U.S.C. 7491(c)changedby S. 5441 Sec. 305(c)
The bill says: by striking "Notwithstanding" and inserting the following:
Bill text · Current law (26 U.S.C. 7491)
26 U.S.C. 7491(c)changedby S. 5441 Sec. 305(c)
with respect to—(A) the liability
The bill says: by striking "with respect to the liability" and inserting
Bill text · Current law (26 U.S.C. 7491)
26 U.S.C. 7491(c)changedby S. 5441 Sec. 305(c)
The bill says: by striking the period after "title" and inserting ", and",
Bill text · Current law (26 U.S.C. 7491)
26 U.S.C. 7491(c)added (B)by S. 5441 Sec. 305(c)
(B) the application of any disallowance period (as defined in section 6751(d)) to any individual.
The bill says: by adding at the end the following new subparagraph:
Bill text · Current law (26 U.S.C. 7491)
26 U.S.C. 7491(c)added (2)by S. 5441 Sec. 305(c)
(2) Standard of proof for certain disallowance periods.— In the case of any court proceeding with respect to any disallowance period described in section 24(g)(1)(B)(i), 25A(b)(4)(A)(ii)(I), or 32(k)(1)(B)(i), the standard of proof shall be the same standard as required in a proceeding under section 7454(a).
The bill says: by adding at the end the following new paragraph:
Bill text · Current law (26 U.S.C. 7491)
26 U.S.C. 24(g)(1)(B)changedby S. 5441 Sec. 305(d)
The bill says: in subparagraph (B), by striking "for which there was a final determination that the taxpayer's claim of credit under this section was" each place it appears in clauses (i) and (ii) and inserting "for which a notice of deficiency has been sent under section 6212(a) which notifies the taxpayer that the taxpayer's claim of credit under this section was denied, or a determination that has become final under section 7481 has been made by the Tax Court to deny such claim,", and
Bill text · Current law (26 U.S.C. 24)
26 U.S.C. 24(g)(1)added (C)by S. 5441 Sec. 305(d)
(C) Allowance of previously denied credits after Tax Court consideration.— Notwithstanding subparagraphs (A) and (B), a taxable year shall not be treated as a taxable year in the disallowance period if the Tax Court determines that the disallowance period was not properly imposed for such year pursuant to section 6214(e).
The bill says: by adding at the end the following new subparagraph:
Bill text · Current law (26 U.S.C. 24)
26 U.S.C. 25A(b)(4)(A)(ii)changedby S. 5441 Sec. 305(d)
The bill says: in clause (ii), by striking "for which there was a final determination that the taxpayer's claim of the American Opportunity Credit under this section was" each place it appears in subclauses (I) and (II) and inserting "for which a notice of deficiency has been sent under section 6212(a) which notifies the taxpayer that the taxpayer's claim of credit under this section was denied, or a determination that has become final under section 7481 has been made by the Tax Court to deny such claim,", and
Bill text · Current law (26 U.S.C. 25A)
26 U.S.C. 25A(b)(4)(A)added (iii)by S. 5441 Sec. 305(d)
(iii) Allowance of previously denied credits after Tax Court consideration.— Notwithstanding clauses (i) and (ii), a taxable year shall not be treated as a taxable year in the disallowance period if the Tax Court determines that the disallowance period was not properly imposed for such year pursuant to section 6214(e).
The bill says: by adding at the end the following new clause:
Bill text · Current law (26 U.S.C. 25A)
26 U.S.C. 32(k)(1)(B)changedby S. 5441 Sec. 305(d)
The bill says: in subparagraph (B), by striking "for which there was a final determination that the taxpayer's claim of credit under this section was" each place it appears in clauses (i) and (ii) and inserting "for which a notice of deficiency has been sent under section 6212(a) which notifies the taxpayer that the taxpayer's claim of credit under this section was denied, or a determination that has become final under section 7481 has been made by the Tax Court to deny such claim,", and
Bill text · Current law (26 U.S.C. 32)
26 U.S.C. 32(k)(1)added (C)by S. 5441 Sec. 305(d)
(C) Allowance of previously denied credits after Tax Court consideration.— Notwithstanding subparagraphs (A) and (B), a taxable year shall not be treated as a taxable year in the disallowance period if the Tax Court determines that the disallowance period was not properly imposed for such year pursuant to section 6214(e).
The bill says: by adding at the end the following new subparagraph:
Bill text · Current law (26 U.S.C. 32)
26 U.S.C. 6511(d)added (9)by S. 5441 Sec. 305(d)
(9) Special rules relating to disallowance periods.— The running of the periods described in subsections (a) and (b)(2) with respect to any claim for a credit allowed under section 24, 25A, or 32 for any taxable year in a disallowance period (as defined in section 6751(d)) shall be suspended during any period in which the imposition of such disallowance period is pending before the Tax Court.
The bill says: Section 6511(d) is amended by adding at the end the following new paragraph:
Bill text · Current law (26 U.S.C. 6511)
26 U.S.C. 6015(e)(7)changedby S. 5441 Sec. 306(a)
The bill says: Section 6015(e)(7) is amended by striking "by the Tax Court and shall be based upon" and all that follows and inserting a period.
Bill text · Current law (26 U.S.C. 6015)
26 U.S.C. 6015(e)(1)(A)changedby S. 5441 Sec. 306(b)
The bill says: Section 6015(e)(1)(A) is amended by inserting "(including any remedy applicable in a suit for refund or collection or in a bankruptcy case)" after "In addition to any other remedy provided by law".
Bill text · Current law (26 U.S.C. 6015)
26 U.S.C. 7451renumberedby S. 5441 Sec. 307(a)
(b) Treatment of deadlines for certain petitions.—(1) In general.— The deadlines for filing petitions under section 6015(e)(1)(A), the first sentence of section 6213(a), and section 6330(d)(1)(A) shall be considered nonjurisdictional claims-processing rules subject to waiver, forfeiture, estoppel, and equitable tolling. For purposes of section 6015(e)(1)(B), the second and fourth sentences of section 6213(a), and the last sentence of section 6330(e)(1), a petition not timely filed shall be treated as timely filed if the Tax Court determines that the failure to timely file is excused by waiver, forfeiture, estoppel, or equitable tolling.(2) Treatment of collection activity.— If the Tax Court determines that the failure to timely file a petition under section 6015(e)(1)(A), 6213(a), or 6330(d)(1)(A) is excused by waiver, forfeiture, estoppel, or equitable tolling, the Secretary (or the Attorney General, as the case may be) shall abate any assessment made under section 6213(c) to which the petition relates, suspend any levy or proceeding for the collection of the liability to which the petition relates, and (unless the taxpayer otherwise requests) refund any amount of such liability previously collected. The previous sentence shall not apply if section 6330(e)(2), 6330(f), 6330(g), 6851, 6852, or 6861 applies. The Tax Court shall have jurisdiction to enforce this paragraph.
The bill says: Section 7451 is amended by redesignating subsection (b) as subsection (c) and by inserting after subsection (a) the following new subsection:
Bill text · Current law (26 U.S.C. 7451)
26 U.S.C. 6015(e)(1)(B)(i)changedby S. 5441 Sec. 307(a)
The bill says: in paragraph (1)(B)(i), by striking "or, if a petition has been filed with the Tax Court under subparagraph (A), until the decision of the Tax Court has become final" and inserting "or, if a timely petition has been filed with the Tax Court under subparagraph (A), from the date such petition is filed (or, if filed after the close of the 90th day referred to in subparagraph (A)(ii), the date the Tax Court determines such petition is excused under section 7451(b)) until the decision of the Tax Court has become final", and
Bill text · Current law (26 U.S.C. 6015)
26 U.S.C. 6015(e)(2)renumberedby S. 5441 Sec. 307(a)
The bill says: by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively, and by moving such clauses two ems to the right,
Bill text · Current law (26 U.S.C. 6015)
26 U.S.C. 6015(e)(2)changedby S. 5441 Sec. 307(a)
The bill says: by striking "for the period" and inserting "for any period",
Bill text · Current law (26 U.S.C. 6015)
26 U.S.C. 6015(e)(2)changedby S. 5441 Sec. 307(a)
The bill says: by striking "for 60 days thereafter" and inserting "for 60 days after the latest of such periods",
Bill text · Current law (26 U.S.C. 6015)
26 U.S.C. 6015(e)(2)changedby S. 5441 Sec. 307(a)
shall—(A) be suspended—
The bill says: by striking "shall be suspended" and inserting
Bill text · Current law (26 U.S.C. 6015)
26 U.S.C. 6015(e)(2)changedby S. 5441 Sec. 307(a)
, and(B) if the Tax Court determines that the failure to timely file a petition under paragraph (1)(A) is excused under section 7451(b), be extended by the number of days between the deadline for filing the petition (determined without regard to the application of section 7451(b)) and the date on which the court determines that the failure to timely file the petition is excused.
The bill says: by striking the period after "Secretary" and inserting
Bill text · Current law (26 U.S.C. 6015)
26 U.S.C. 6213(a)changedby S. 5441 Sec. 307(a)
(a) Time for filing timely petition and restriction on assessment. Within 90 days, or 150 days if the notice is addressed to a person outside the United States, after the notice of deficiency authorized in section 6212 is mailed (not counting Saturday, Sunday, or a…
The bill says: by inserting "timely" before "petition", and
Bill text · Current law (26 U.S.C. 6213)
26 U.S.C. 6213(a)changedby S. 5441 Sec. 307(a)
…for its collection shall be made, begun, or prosecuted until such notice has been mailed to the taxpayer, nor until the expiration of such 90-day or 150-day period, as the case may be, nor, if a petition has been filed with the Tax Court, from the time such petition is filed (or, if filed after the close of the 90-day or 150-day period, the date the Tax Court determines such filing is excused under section 7451(b)) until the decision of the Tax Court has become final. Notwithstanding the provisions of section 7421(a), the making of such assessment or the beginning of such proceeding or levy during the time such prohibition is in force may be enjoined…
The bill says: by inserting "from the time such petition is filed (or, if filed after the close of the 90-day or 150-day period, the date the Tax Court determines such filing is excused under section 7451(b))" before "until the decision".
Bill text · Current law (26 U.S.C. 6213)
26 U.S.C. 6213(c)changedby S. 5441 Sec. 307(a)
(c) Failure to file petition. If the taxpayer does not file a petition with the Tax Court within the time prescribed in subsection (a) (without regard to the application of section 7451(b)), the deficiency, notice of which has been mailed to the taxpayer, shall be assessed, and shall be paid upon notice and demand from the Secretary.
The bill says: Section 6213(c) is amended by inserting "(without regard to the application of section 7451(b))" after "the time prescribed in subsection (a)".
Bill text · Current law (26 U.S.C. 6213)
26 U.S.C. 6330(e)(1)changedby S. 5441 Sec. 307(a)
The bill says: by inserting "timely" before "appeals therein", and
Bill text · Current law (26 U.S.C. 6330)
26 U.S.C. 6330(e)(1)changedby S. 5441 Sec. 307(a)
The bill says: by striking "are pending" through "a final determination in such hearing." and inserting the following: "are pending, but in no event shall any such period expire before the 90th day after the day on which there is a final determination in such hearing. If the Tax Court determines that the failure to timely file a petition under subsection (d) is excused under section 7451(b), such levy actions shall be suspended between the date the court so determines and the date which is 90 days after the decision of the Tax Court becomes final, and the running of any such period of limitations shall be extended by the number of days between the deadline for filing the petition (determined without regard to the application of section 7451(b)) and the date on which the court determines that the failure to timely file the petition is excused.".
Bill text · Current law (26 U.S.C. 6330)
26 U.S.C. 6503(a)(1)changedby S. 5441 Sec. 307(a)
The bill says: by striking "the period" and inserting "any period",
Bill text · Current law (26 U.S.C. 6503)
26 U.S.C. 6503(a)(1)changedby S. 5441 Sec. 307(a)
The bill says: by striking "for 60 days thereafter" and inserting "for 60 days after the latest of such periods", and
Bill text · Current law (26 U.S.C. 6503)
26 U.S.C. 6503(a)(1)addedby S. 5441 Sec. 307(a)
The bill says: by adding at the end the following new sentence: "If the Tax Court determines that the failure to timely file a petition under section 6213(a) is excused under section 7451(b), the periods of limitations provided in sections 6501 and 6502 on the making of assessments and the collection by levy or a proceeding in court shall be extended by the number of days between the deadline for filing the petition (determined without regard to the application of section 7451(b)) and the date on which the court determines that the failure to timely file the petition is excused.".
Bill text · Current law (26 U.S.C. 6503)
26 U.S.C. 7459(d)rewrittenby S. 5441 Sec. 307(a)
(d) Effect of decision dismissing petition.—(1) In general.— If a petition has been filed by the taxpayer under section 6015(e)(1)(A), 6213(a), or 6330(d)(1)(A), a decision of the Tax Court dismissing the proceeding shall be considered as its decision on the merits, unless the dismissal is—(A) for lack of jurisdiction,(B) for failure to timely file the petition, or(C) in the case of a petition under section 6015(e)(1)(A) or 6330(d)(1)(A), at the request of the taxpayer (unless the Tax Court orders that the dismissal shall be considered its decision on the merits).(2) Entry of order.— An order specifying the amount of deficiency or liability, if appropriate, shall be entered in the records of the Tax Court unless the Tax Court cannot determine such amount from the record in the proceeding.
The bill says: Section 7459(d) is amended to read as follows:
Bill text · Current law (26 U.S.C. 7459)
26 U.S.C. 6330(c)(2)(B)changedby S. 5441 Sec. 308(a)
The bill says: Section 6330(c)(2)(B) is amended by inserting "in the Tax Court or any other Federal court (other than through a suit for a refund under section 7442 or under section 1346(a)(1) of title 28, United States Code)" after "otherwise have an opportunity to dispute such tax liability".
Bill text · Current law (26 U.S.C. 6330)
26 U.S.C. 6330(c)(4)changedby S. 5441 Sec. 308(b)
The bill says: Section 6330(c)(4) is amended by striking "An issue may not be raised" and inserting "An issue which is not related to the amount or existence of the underlying tax liability may not be raised".
Bill text · Current law (26 U.S.C. 6330)
26 U.S.C. 6330(d)(1)changedby S. 5441 Sec. 309(a)
The bill says: by striking "The person may" and inserting the following:
Bill text · Current law (26 U.S.C. 6330)
26 U.S.C. 6330(d)(1)changedby S. 5441 Sec. 309(a)
The bill says: by inserting "and, unless a challenge was precluded under subsection (c), with respect to the determination of any overpayments of tax for the taxable periods or events at issue in the determination" after "matter" , and
Bill text · Current law (26 U.S.C. 6330)
26 U.S.C. 6330(d)(1)added (B)by S. 5441 Sec. 309(a)
(B) Determination and enforcement of overpayments.— Rules similar to the rules of paragraphs (1) and (2) of section 6512(b) shall apply for purposes of this paragraph.(C) Limitation on amount of credit or refund.—(i) In general.— In the case of any petition under subparagraph (A), no credit or refund shall be allowed or made of any portion of the tax unless the Tax Court determines as part of its decision that such portion was paid—(I) after the notice described in subsection (a)(1) or section 6320(a)(1) (as the case may be) was given,(II) within the period which would be applicable under section 6511(b)(2), (c), or (d), if, on the date the notice described in subsection (a)(1) or section 6320(a)(1) (as the case may be) was given, a claim had been filed (whether or not filed) stating the grounds upon which the Tax Court finds that there is an overpayment, or(III) within the period which would be applicable under section 6511(b)(2), (c), or (d), in respect of any claim for refund filed within the applicable period specified in section 6511 and before the date the notice described in subsection (a)(1) or section 6320(a)(1) (as the case may be) was given—In a case described in subclause (II) where the date the notice described in subsection (a)(1) or section 6320(a)(1) (as the case may be) is given is during the third year after the due date (determined without regard to any extensions) for filing the return of tax and no return was filed before such date, the applicable period under subsections (a) and (b)(2) of section 6511 shall be 3 years.(aa) which had not been disallowed before that date,(bb) which had been disallowed before that date and in respect of which a timely suit for refund could have commenced as of that date, or(cc) in respect of which a suit for refund had been commenced before that date and within the period specified in section 6532.(ii) Date notice was given.— For purposes of this subparagraph—(I) if notice was given under subsection (a)(2) or section 6320(a)(2) by mail, the date the notice was given shall be the date such notice was mailed, and(II) if notice was given under subsection (a)(2) or 6320(a)(2) by leaving such notice at the dwelling or usual place of business of the person, the date the notice was given shall be the date such notice was left.
The bill says: by adding at the end the following new subparagraphs:
Bill text · Current law (26 U.S.C. 6330)
26 U.S.C. 6330(e)(1)changedby S. 5441 Sec. 309(b)
The bill says: Section 6330(e)(1) is amended by inserting "section 6511 (relating to limitations on credit or refund)," after "section 6502 (relating to collection after assessment)".
Bill text · Current law (26 U.S.C. 6330)
26 U.S.C. 6402added (o)by S. 5441 Sec. 309(b)
(o) Prohibition on crediting of overpayments against disputed tax liability during collection action proceedings.— If a hearing is properly requested under section 6320(a)(3)(B) or 6330(a)(3)(B), and an underlying tax liability referred to in section 6330(c)(2)(B) is properly disputed at such hearing, such tax liability shall not, except with the consent of the taxpayer, be taken into account under subsection (a) for the period during which the period of limitations for filing a claim for credit or refund relating to such tax liability is suspended by reason of section 6330(e).
The bill says: Section 6402 is amended by adding at the end the following new subsection:
Bill text · Current law (26 U.S.C. 6402)
26 U.S.C. 6330(c)(2)(A)changedby S. 5441 Sec. 309(c)
The bill says: Section 6330(c)(2)(A) is amended by striking "unpaid tax or the proposed levy" and inserting "unpaid tax, collection action, or proposed collection action".
Bill text · Current law (26 U.S.C. 6330)
26 U.S.C. 7442changedby S. 5441 Sec. 310(a)
The bill says: by striking "The Tax Court" and inserting the following:
Bill text · Current law (26 U.S.C. 7442)
26 U.S.C. 7442added (b)by S. 5441 Sec. 310(a)
(b) Actions for refunds.—(1) Jurisdiction.—(A) In general.— In addition to any other court authorized by law, the Tax Court shall, subject to section 7422, have jurisdiction over any action, not exceeding the applicable amount, for the recovery of any internal revenue tax alleged to have been erroneously or illegally assessed or collected, or any penalty claimed to have been collected without authority or of any sum alleged to have been excessive or in any manner wrongfully collected under the internal revenue laws to the same extent as the district courts of the United States.(B) Applicable amount.— For purposes of this paragraph, the applicable amount means—(i) $2,000,000 for any one taxable year, in the case of taxes imposed by subtitle A,(ii) $2,000,000, in the case of the tax imposed by chapter 11,(iii) $2,000,000 for any one calendar year, in the case of the tax imposed by chapter 12,(iv) $2,000,000 for any 1 taxable period (or, if there is no taxable period, taxable event) in the case of any tax imposed by subtitle C, D, or E, and(v) $2,000,000, in the case of any other amount collected.(2) Further notice of deficiency.— If the Secretary prior to the hearing of a suit brought by a taxpayer under paragraph (1) mails to the taxpayer a notice that a deficiency has been determined in respect of the tax which is the subject matter of the taxpayer's suit, the proceedings in the taxpayer's suit shall be stayed during the period of time in which the taxpayer may file a petition with the Tax Court for a redetermination of the asserted deficiency, and for 60 days thereafter. If the taxpayer files such a petition with the Tax Court, such petition shall be consolidated with the suit brought under paragraph (1).
The bill says: by adding at the end the following new subsection:
Bill text · Current law (26 U.S.C. 7442)
26 U.S.C. 7463(f)added (4)by S. 5441 Sec. 310(b)
(4) a petition to the Tax Court under section 7442(b) in which the amount of the refund sought does not exceed $50,000.
The bill says: Section 7463(f) is amended by striking "and" at the end of paragraph (2), by striking the period at the end of paragraph (3) and inserting ", and", and by adding at the end the following new paragraph:
Bill text · Current law (26 U.S.C. 7463)
26 U.S.C. 7422(k)added (5)by S. 5441 Sec. 310(c)
(5) For jurisdiction of the Tax Court, see section 7442(b).
The bill says: Section 7422(k) is amended by adding at the end the following new paragraph:
Bill text · Current law (26 U.S.C. 7422)
26 U.S.C. 7482(b)(1)added (H)by S. 5441 Sec. 310(c)
(H) in the case of a petition under section 7442(b)—(i) the legal residence of the petitioner if the petitioner is an individual, and(ii) the principal place of business or principal office or agency if the petitioner is an entity other than an individual.
The bill says: Section 7482(b)(1) is amended by striking "or" at the end of subparagraph (F), by striking the period at the end of subparagraph (G) and inserting ", or", and by adding at the end the following new subparagraph:
Bill text · Current law (26 U.S.C. 7482)
28 U.S.C. 1346(a)changedby S. 5441 Sec. 310(c)
The bill says: in the matter preceding paragraph (1), by striking ", concurrent with the United States Court of Federal Claims,",
Bill text · Current law (28 U.S.C. 1346)
28 U.S.C. 1346(a)(1)changedby S. 5441 Sec. 310(c)
The bill says: in paragraph (1), by striking "Any" and inserting "Concurrent with the United States Court of Federal Claims and the Tax Court, any", and
Bill text · Current law (28 U.S.C. 1346)
28 U.S.C. 1346(a)(2)changedby S. 5441 Sec. 310(c)
The bill says: in paragraph (2), by striking "Any" and inserting "Concurrent with the United States Court of Federal Claims, any".
Bill text · Current law (28 U.S.C. 1346)
26 U.S.C. 7436(c)(1)changedby S. 5441 Sec. 312(b)
The bill says: Section 7436(c)(1) is amended by striking "if the amount of employment taxes placed in dispute is $50,000 or less for each calendar quarter involved" and inserting "if the amount of employment taxes placed in dispute is equal to or less than the dollar amount in effect under section 7463(a)(1) (determined at the time the pleading is filed under subsection (a)) for each calendar quarter involved".
Bill text · Current law (26 U.S.C. 7436)
26 U.S.C. 7443A(b)(3)changedby S. 5441 Sec. 312(c)
(3) any proceeding where neither the amount of the deficiency placed in dispute (within the meaning of section 7463) nor the amount of any claimed overpayment exceeds $50,000the dollar amount in effect under section 7463(a)(1) (determined at the time the pleading is filed),
The bill says: Section 7443A(b)(3) is amended by striking "$50,000" and inserting "the dollar amount in effect under section 7463(a)(1) (determined at the time the pleading is filed)".
Bill text · Current law (26 U.S.C. 7443A)
26 U.S.C. 7463(f)(2)changedby S. 5441 Sec. 312(c)
The bill says: Section 7463(f)(2) is amended by striking "an appeal" and inserting "a petition".
Bill text · Current law (26 U.S.C. 7463)
26 U.S.C. 7463changedby S. 5441 Sec. 312(c)
The bill says: The heading for section 7463 is amended by striking "Disputes involving $50,000 or less" and inserting "Small disputes".
Bill text · Current law (26 U.S.C. 7463)
26 U.S.C. 7803(c)(2)(D)(i)(I)changedby S. 5441 Sec. 401(1)
The bill says: in subclause (I), by striking "and" at the end,
Bill text · Current law (26 U.S.C. 7803)
26 U.S.C. 7803(c)(2)(D)(i)(II)changedby S. 5441 Sec. 401(1)
The bill says: in subclause (II), by striking the period at the end and inserting "; and", and
Bill text · Current law (26 U.S.C. 7803)
26 U.S.C. 7803(c)(2)(D)(i)added (III)by S. 5441 Sec. 401(1)
(III) appoint counsel in the Office of the Taxpayer Advocate to report directly to the National Taxpayer Advocate or delegate thereof.
The bill says: by adding at the end the following:
Bill text · Current law (26 U.S.C. 7803)
26 U.S.C. 7803(c)(2)(D)added (iii)by S. 5441 Sec. 401(2)
(iii) Counsel.— For purposes of clause (i)(III)—(I) the National Taxpayer Advocate may utilize direct hire authority to recruit and appoint qualified applicants, without regard to any preference requirements,(II) any counsel appointed pursuant to such clause shall not report to the Chief Counsel for the Internal Revenue Service and shall not represent the Government in litigation,(III) any legal interpretation of counsel appointed pursuant to such clause shall not be binding on the Secretary, and(IV) pursuant to section 301(f)(2) of title 31, United States Code, and subsection (b)(2)(A), the Chief Counsel for the Internal Revenue Service shall continue to provide advice to the National Taxpayer Advocate and the Office of the Taxpayer Advocate.
The bill says: by adding at the end the following:
Bill text · Current law (26 U.S.C. 7803)
26 U.S.C. 7803(c)(2)(D)(i)(II)changedby S. 5441 Sec. 402(a)
The bill says: Section 7803(c)(2)(D)(i)(II) is amended by striking "any employee of any local office of a taxpayer advocate described in subclause (I)" and inserting "any officer or employee of the Office of the Taxpayer Advocate".
Bill text · Current law (26 U.S.C. 7803)
26 U.S.C. 7803(c)added (6)by S. 5441 Sec. 403(a)
(6) Access to information and meetings.—(A) In general.— Upon request, the Commissioner shall provide the Office of the Taxpayer Advocate with access to any of the following:(i) In the case of any request made by a taxpayer for assistance by the Office of the Taxpayer Advocate which is open and pending—(I) any return or return information (as such terms are defined in section 6103(b)) which the National Taxpayer Advocate determines is necessary to assist such taxpayer,(II) any legal advice provided by the staff of the Office of Chief Counsel to any employee of the Internal Revenue Service (including any legal advice prepared in contemplation of litigation) which the National Taxpayer Advocate determines is necessary to assist such taxpayer, regardless of whether such legal advice cannot be disclosed to such taxpayer, and(III) any meeting between such taxpayer and any employee of the Internal Revenue Service.(ii) To the extent necessary to perform a full and substantive analysis included in any report described in paragraph (2)(B)—(I) any relevant document, data, or statistical information, and(II) any legal advice provided by the staff of the Office of the Chief Counsel to any employee of the Internal Revenue Service (including any legal advice prepared in contemplation of litigation).(iii) Legal advice from the staff of the Office of Chief Counsel on any matter or issue.(B) Deadline.— Access to any information, advice, or meeting described in subparagraph (A) shall be provided by the Commissioner not later than—(i) the date which is 2 weeks after the date on which a written request submitted by the Office of the Taxpayer Advocate has been received by the Commissioner, or(ii) such date as is otherwise agreed to by the Commissioner and the Office of the Taxpayer Advocate.(C) Meetings.— For purposes of subparagraph (A)(i)(III), the Commissioner shall be deemed to have satisfied the requirement under such subparagraph if the Commissioner has extended an invitation to attend the meeting to the Office of the Taxpayer Advocate, without regard to whether such an invitation was declined by any employee of the Office of the Taxpayer Advocate.(D) Privilege.— Any access provided to the Office of the Taxpayer Advocate pursuant to this paragraph with respect to information or legal advice from the staff of the Office of Chief Counsel shall have no effect on any privilege which otherwise applies to such information or legal advice.
The bill says: Section 7803(c) is amended by adding at the end the following new paragraph:
Bill text · Current law (26 U.S.C. 7803)
26 U.S.C. 7803(c)(2)(B)(ii)(XII)changedby S. 5441 Sec. 403(b)
The bill says: in subclause (XII), by striking "and" at the end,
Bill text · Current law (26 U.S.C. 7803)
26 U.S.C. 7803(c)(2)(B)(ii)(XIII)changedby S. 5441 Sec. 403(b)
The bill says: in subclause (XIII), by striking the period at the end and inserting "; and", and
Bill text · Current law (26 U.S.C. 7803)
26 U.S.C. 7803(c)(2)(B)(ii)added (XIV)by S. 5441 Sec. 403(b)
(XIV) identify any failure by the Commissioner to provide access to any information, advice, or meeting described in subparagraph (A) of paragraph (6) by the date required under subparagraph (B) of such paragraph.
The bill says: by adding at the end the following new subclause:
Bill text · Current law (26 U.S.C. 7803)
26 U.S.C. 7811removedby S. 5441 Sec. 404(a)
The bill says: by striking subsection (d), and
Bill text · Current law (26 U.S.C. 7811)
26 U.S.C. 7811renumberedby S. 5441 Sec. 404(a)
The bill says: by redesignating subsections (e) through (g) as subsections (d) through (f), respectively.
Bill text · Current law (26 U.S.C. 7811)
26 U.S.C. 6306(k)(2)changedby S. 5441 Sec. 404(b)
The bill says: Section 6306(k)(2) is amended by striking "section 7811(g)" and inserting "section 7811(f)".
Bill text · Current law (26 U.S.C. 6306)
26 U.S.C. 6696(e)rewrittenby S. 5441 Sec. 501(a)
(1) Return.— The term return means—(A) any return of any tax imposed by this title,(B) any administrative adjustment request under section 6227,(C) any partnership adjustment tracking report under section 6226(b)(4)(A), and(D) any other document purporting to be a return, request, or report described in subparagraphs (A) through (C).
The bill says: Paragraph (1) of section 6696(e) is amended to read as follows:
Bill text · Current law (26 U.S.C. 6696)
26 U.S.C. 6695changedby S. 5441 Sec. 502(a)
(c) Failure to furnish valid identifying number.—(1) In general.—(A) Penalty.— Any person who is a tax return preparer with respect to any return or claim for refund and who fails to furnish an identifying number which complies with section 6109(a)(4)(A) with respect to such return or claim shall pay a penalty of $250 for such failure.(B) Non-compliance.— For purposes of this paragraph, an identifying number shall be deemed to not comply with section 6109(a)(4)(A) if such identifying number—(i) is assigned to another person,(ii) does not exist,(iii) is inactive or expired,(iv) has been withdrawn,(v) is suspended or has been revoked, or(vi) is otherwise invalid for use by the tax return preparer.(2) Exception.— The penalty imposed under paragraph (1) shall not apply if it is shown that such failure is due to reasonable cause and not due to willful neglect.(3) Limitation.— The maximum penalty imposed under this subsection on any person with respect to documents filed during any calendar year shall not exceed $75,000.
The bill says: by striking subsection (c) and inserting the following:
Bill text · Current law (26 U.S.C. 6695)
26 U.S.C. 6695renumberedby S. 5441 Sec. 502(a)
The bill says: by redesignating subsection (h) as subsection (i),
Bill text · Current law (26 U.S.C. 6695)
26 U.S.C. 6695added (h)by S. 5441 Sec. 502(a)
(h) Use of invalid or appropriated electronic filing identification number.—(1) In general.— Any person who is an electronic return originator with respect to any applicable electronically filed document who fails to meet the requirements of paragraph (2), with respect to such applicable electronically filed document, shall pay a penalty of $250 for such failure, unless it is shown that such failure is due to reasonable cause and not due to willful neglect.(2) Requirement.— The requirements of this paragraph are met if—(A) the electronic return originator uses an electronic filing identification number which is assigned to such person by the Secretary, and(B) in the case of any applicable electronically filed document filed after the date on which the program under paragraph (4) is established, the electronic filing identification number has been validated under such program at the time of the filing.(3) Definitions.— For purposes of this subsection—(A) Electronic return originator.—(i) In general.— The term electronic return originator means a person who originates the electronic submission of 1 or more applicable electronically filed documents.(ii) Exceptions.— The term electronic return originator shall not include a person merely because such person originates an electronic submission described in clause (i)—(I) by providing services which are limited to typing, reproduction, or other mechanical assistance,(II) at the direction of an employer (or of an officer or employee of the employer) by whom such person is regularly and continuously employed,(III) as a fiduciary, or(IV) in response to a determination by the Secretary that directly or indirectly affects the tax liability of a taxpayer.(B) Electronic filing identification number.—(i) In general.— The term electronic filing identification number means a unique identifier issued by the Secretary to authorize a person or entity to electronically file on behalf of other taxpayers—(I) any return of Federal tax,(II) any claim for a refund, and(III) except as provided by the Secretary, any other document required to be filed with the Secretary under this title.(ii) Suspension or revocation.— In the case of any electronic filing identification number which has been suspended or revoked by the Secretary, such number shall not be deemed valid for purposes of paragraph (1).(C) Applicable electronically filed document.— The term applicable electronically filed document means any document which is described in subclause (I), (II), or (III) of subparagraph (B)(i) and filed electronically on behalf of other taxpayers.(4) Electronic filing identification number validation program.—(A) In general.— Not later than 24 months after the date of the enactment of this paragraph, the Secretary shall establish and maintain a program for the validation of electronic filing identification numbers.(B) Timing and frequency of validation.— The Secretary shall validate an electronic filing identification number—(i) prior to the initial use of such electronic filing identification number for electronic filing, and(ii) at such intervals, or upon such events, as the Secretary determines appropriate, to ensure the continued validity and integrity of such electronic filing identification number.(C) Real-time validation system.—(i) In general.— The program established under this paragraph shall provide a real-time system for the validation of electronic filing identification numbers.(ii) System requirements.— The system provided under clause (i) shall—(I) provide immediate confirmation of the validity status of an electronic filing identification number,(II) identify whether an electronic filing identification number has been suspended, revoked, or compromised or is otherwise ineligible for the activity for which it is used, and(III) be designed to support secure, automated, and high-volume validation requests, including usage by large-scale tax preparation software systems.(D) Access.— The Secretary shall—(i) provide access to the system in such form and manner as the Secretary may prescribe, and(ii) accept a validation request only from a person authenticated and authorized in accordance with requirements prescribed by the Secretary and only with respect to an electronic filing identification number and electronic filing activity for which such person is authorized to request validation, whether on its own behalf or in connection with services provided to the person to whom the electronic filing identification number was issued.
The bill says: by inserting after subsection (g) the following new subsection:
Bill text · Current law (26 U.S.C. 6695)
26 U.S.C. 6695(i)(1)changedby S. 5441 Sec. 502(a)
The bill says: in subsection (i)(1), as redesignated by paragraph (2), by striking "and (g)" and inserting "(g), and (h)".
Bill text · Current law (26 U.S.C. 6695)
26 U.S.C. 7701(a)(36)changedby S. 5441 Sec. 502(b)
The bill says: by striking subparagraph (A) and inserting the following:
Bill text · Current law (26 U.S.C. 7701)
26 U.S.C. 7701(a)(36)(B)(ii)changedby S. 5441 Sec. 502(b)
The bill says: in clause (ii), by striking "return or claim for refund" and inserting "return, document purporting to be a return, or claim for refund", and
Bill text · Current law (26 U.S.C. 7701)
26 U.S.C. 7701(a)(36)(B)(iii)changedby S. 5441 Sec. 502(b)
The bill says: in clause (iii), by striking "return or claim for refund" and inserting "return, document purporting to be a return, or claim for refund".
Bill text · Current law (26 U.S.C. 7701)
26 U.S.C. 6695(a)changedby S. 5441 Sec. 503(a)
The bill says: by striking "$50" and inserting "$250", and
Bill text · Current law (26 U.S.C. 6695)
26 U.S.C. 6695(a)changedby S. 5441 Sec. 503(a)
The bill says: by striking "$25,000" and inserting "$50,000",
Bill text · Current law (26 U.S.C. 6695)
26 U.S.C. 6695(b)changedby S. 5441 Sec. 503(a)
The bill says: by striking "$50" and inserting "$250", and
Bill text · Current law (26 U.S.C. 6695)
26 U.S.C. 6695(b)changedby S. 5441 Sec. 503(a)
The bill says: by striking "$25,000" and inserting "$75,000",
Bill text · Current law (26 U.S.C. 6695)
26 U.S.C. 6695(d)changedby S. 5441 Sec. 503(a)
The bill says: by striking "$50" and inserting "$250", and
Bill text · Current law (26 U.S.C. 6695)
26 U.S.C. 6695(d)changedby S. 5441 Sec. 503(a)
The bill says: by striking "$25,000" and inserting "$50,000",
Bill text · Current law (26 U.S.C. 6695)
26 U.S.C. 6695(e)changedby S. 5441 Sec. 503(a)
The bill says: by striking "$50" and inserting "$250", and
Bill text · Current law (26 U.S.C. 6695)
26 U.S.C. 6695(e)changedby S. 5441 Sec. 503(a)
The bill says: by striking "$25,000" and inserting "$75,000",
Bill text · Current law (26 U.S.C. 6695)
26 U.S.C. 6695(g)changedby S. 5441 Sec. 503(a)
The bill says: in subsection (g), by striking "$500" and inserting "$1,000", and
Bill text · Current law (26 U.S.C. 6695)
26 U.S.C. 6695(i)(1)changedby S. 5441 Sec. 503(a)
The bill says: by striking "2014" and inserting "2025", and
Bill text · Current law (26 U.S.C. 6695)
26 U.S.C. 6695(i)(1)changedby S. 5441 Sec. 503(a)
The bill says: by striking "calendar year 2013" and inserting "calendar year 2024".
Bill text · Current law (26 U.S.C. 6695)
26 U.S.C. 6695rewrittenby S. 5441 Sec. 503(b)
(f) Misappropriation.—(1) In general.— Any person who is a tax return preparer who misappropriates any payment made in respect of the taxes imposed by this title which is issued to a taxpayer (other than the tax return preparer) shall pay a penalty in an amount determined under paragraph (2).(2) Penalty.— The amount of the penalty determined under this paragraph shall, with respect to each payment described in paragraph (1), be equal to the greater of—(A) $1,000, or(B) the full amount of such payment.(3) Exception.— Paragraph (1) shall not apply with respect to the deposit by a bank (within the meaning of section 581) of the full amount of the payment in the taxpayer's account in such bank for the benefit of the taxpayer.
The bill says: Subsection (f) of section 6695 is amended to read as follows:
Bill text · Current law (26 U.S.C. 6695)
26 U.S.C. 6695(i)(1)changedby S. 5441 Sec. 503(b)
The bill says: Section 6695(i)(1) is amended by striking "(f)," and inserting "(f)(2)(A),".
Bill text · Current law (26 U.S.C. 6695)
26 U.S.C. 6109(a)changedby S. 5441 Sec. 504(a)
(4) Furnishing identifying number of tax return preparer.—(A) In general.— Any return, claim for refund, or document purporting to be a return or claim for refund which is prepared by a tax return preparer shall bear such identifying number for securing proper identification of such preparer, their employer, or both, as may be prescribed.(B) Suspension or revocation.— In the case of any identifying number which has been suspended or revoked by the Secretary under subsection (e), such number shall not be deemed valid for purposes of subparagraph (A).(C) Definitions.— For purposes of this section—(i) Specified practitioner.— The term specified practitioner means a certified public accountant, attorney, or enrolled agent—(I) who is—(aa) in good standing with—(AA) the Department of the Treasury, and,(BB) in the case of a certified public accountant or attorney, State licensing authorities, and(bb) authorized to represent persons before the Department of the Treasury under section 330 of title 31, United States Code, and(II) whose professional license or certification has not been revoked or suspended.(ii) Return; claim for refund.— The terms return and claim for refund have the respective meanings given to such terms by section 6696(e).
The bill says: in subsection (a), by striking paragraph (4) and inserting the following:
Bill text · Current law (26 U.S.C. 6109)
26 U.S.C. 6109added (e)by S. 5441 Sec. 504(a)
(e) Identifying number of tax return preparer.—(1) In general.— The Secretary shall maintain a program for administration of preparer tax identification numbers required under subsection (a)(4), which shall include restrictions on the issuance of such numbers to any individual other than an individual who—(A) meets the suitability requirements of paragraph (2) and the education requirements of paragraph (3),(B) meets the state program requirements of paragraph (4), or(C) is a specified practitioner.(2) Demonstration of suitability.—(A) In general.— An individual meets the suitability requirements of this paragraph if such individual has demonstrated to the Secretary the individual's suitability to be a tax return preparer by—(i) providing such information as the Secretary determines necessary, and(ii) passing a background check, including a review by the Secretary regarding compliance with personal tax obligations.(B) Conduct demonstrating lack of suitability.— For purposes of subparagraph (A), an individual shall be deemed to have failed to demonstrate their suitability to be a tax return preparer if—(i) any license or registration issued to such individual by a State to prepare tax returns has been suspended or revoked by such State, or(ii) the Secretary determines that such individual is described in clauses (ii) through (vi) of paragraph (5)(A).(C) Regulations and guidance.— The Secretary shall issue such regulations or other guidance as the Secretary determines necessary to carry out the purposes of this paragraph.(D) Prohibition on examinations.— For purposes of subparagraph (A), except as provided in paragraph (3)(C)(iii), the Secretary may not require an examination as a prerequisite for the assignment or renewal of a preparer tax identification number.(E) Grandfathering of prior background checks.—(i) In general.— Subject to clause (ii), for purposes of subparagraph (A)(ii), in the case of a class of individuals (as identified by the Secretary) who have passed a background check prior to the date of enactment of this subsection, the Secretary may deem such class of individuals to have satisfied the requirement under such subparagraph.(ii) Nonapplication to requirement regarding compliance with personal tax obligations.— Clause (i) shall not apply with respect to review by the Secretary under subparagraph (A)(ii) regarding compliance with personal tax obligations.(3) Educational programs.—(A) In general.— An individual shall meet the education requirements of this paragraph if such individual completes a specified number of hours of educational programs on ethics, professional responsibility, and tax law (including recently enacted Federal income tax legislation) as required by the Secretary prior to the assignment or renewal of a preparer tax identification number.(B) Additional educational requirements for renewal.— The Secretary may require any individual seeking the renewal of a preparer tax identification number to complete educational programs in addition to those required under subparagraph (A). Any educational programs required under this subparagraph shall be based on—(i) a review of returns which include the preparer tax identification number of such preparer, and(ii) any errors identified by the Secretary as part of the review described in clause (i).(C) Other requirements.— For purposes of this paragraph, the Secretary—(i) may not require a tax return preparer to annually complete more than 18 hours of educational programs,(ii) shall require that any educational program include written materials which satisfy such standards as are established by the Secretary,(iii) shall require that any educational program include a method to ensure that the tax return preparer attended the program and sufficiently understood the material presented, and(iv) may not direct any educational program to be completed through a specific provider.(D) Notice of failure to timely complete requirements.— The Secretary shall provide any tax return preparer who fails to complete the requirements of this paragraph notice of such failure and a 30-day period in which to cure such failure.(E) Publication of approved courses.— The Secretary shall publish, on the public website of the Internal Revenue Service—(i) a list of educational programs which have been determined by the Secretary to satisfy the requirement under clause (ii) of subparagraph (C) (and, if applicable, the requirement under clause (iii) of such subparagraph), including the providers of such programs, and(ii) any such requirements as the Secretary deems necessary to impose with respect to any additional programs required under subparagraph (B), provided that such requirements are similar to the requirements provided under section 330 of title 31, United States Code, or regulations prescribed thereunder.(4) Exemption.—(A) In general.— Subject to subparagraph (B), any individual meets the state program requirements of this paragraph if such individual maintains a valid State license or registration issued by a State licensing program or State registration program (including State tax education councils) which includes examination, education, and background check requirements that are comparable to the suitability requirements described in paragraph (2) and the education requirements described in paragraph (3).(B) Grandfathering of certain programs.— For purposes of subparagraph (A), with respect to determining whether a State licensing program or State registration program (including State tax education councils) includes examination, education, and background check requirements which are comparable to the suitability requirements described in paragraph (2) and the education requirements described in paragraph (3), such determination shall be made by the Secretary without regard to whether such requirements were included in such program at the time that such individual was licensed or registered under su
The bill says: by inserting after subsection (d) the following:
Bill text · Current law (26 U.S.C. 6109)
31 U.S.C. 330renumberedby S. 5441 Sec. 504(b)
The bill says: by redesignating subsection (e) as subsection (f); and
Bill text · Current law (31 U.S.C. 330)
31 U.S.C. 330added (e)by S. 5441 Sec. 504(b)
(e) Disclosure of final determinations.— In the case of any determination under subsection (c) or (d)—not later than 30 days following such determination, the Secretary shall publish such determination on a public website, which shall include a statement of the facts and circumstances relating to such determination and the reasons for the determination.(1) in which a suspension, disbarment, or censure, or other penalty is imposed, and(2) for which all administrative and judicial appeals are exhausted,
The bill says: by inserting after subsection (d) the following:
Bill text · Current law (31 U.S.C. 330)
26 U.S.C. 6103(k)added (16)by S. 5441 Sec. 504(c)
(16) Disclosure relating to misconduct by practitioners and tax return preparers.— Under such procedures as the Secretary may prescribe, the Secretary may disclose returns and return information to the extent the Secretary determines it is necessary to publish determinations pursuant to section 6109(e)(7) and section 330(e) of title 31, United States Code, provided that such disclosure is redacted to remove—(A) any name, address, or other identifying information with respect to any persons other than the representative or tax return preparer who is the subject of such determination, and(B) such other information as the Secretary determines appropriate to protect the privacy of such persons.
The bill says: Section 6103(k) is amended by adding at the end the following new paragraph:
Bill text · Current law (26 U.S.C. 6103)
26 U.S.C. 6103(p)(3)(A)changedby S. 5441 Sec. 504(c)
The bill says: Section 6103(p)(3)(A) is amended by striking "or (9)" and inserting "(9), or (16)".
Bill text · Current law (26 U.S.C. 6103)
26 U.S.C. 6109(a)added (5)by S. 5441 Sec. 504(d)
(5) Furnishing identifying number for offer-in-compromise.— Any offer-in-compromise (as described in section 7122), including any required schedule or statement, which has been prepared by any person for compensation shall include such identifying number as may be prescribed for securing proper identification of such person.
The bill says: Section 6109(a) is amended by inserting after paragraph (4) the following new paragraph:
Bill text · Current law (26 U.S.C. 6109)
26 U.S.C. 6103(i)(8)added (D)by S. 5441 Sec. 504(e)
(D) Application to study conducted under Taxpayer Assistance and Service Act.— For purposes of this paragraph, the study and report described in section 504(e)(1) of the Taxpayer Assistance and Service Act shall be deemed to be an audit of the Internal Revenue Service.
The bill says: Section 6103(i)(8) is amended by adding at the end the following new subparagraph:
Bill text · Current law (26 U.S.C. 6103)
26 U.S.C. 7803(e)(6)rewrittenby S. 5441 Sec. 601
The bill says: Subparagraph (B) of section 7803(e)(6) is amended to read as follows:
Bill text · Current law (26 U.S.C. 7803)
26 U.S.C. 7803(e)(6)added (C)by S. 5441 Sec. 602
(C) Authority to appoint individuals not employed by Internal Revenue Service.— The Secretary may utilize direct hire authority to recruit and appoint qualified applicants, without regard to any notice or preference requirements, to positions within the Internal Revenue Service Independent Office of Appeals, provided that such applicants are not employees of the Internal Revenue Service engaged in enforcement functions.
The bill says: Section 7803(e)(6) is amended by adding at the end the following:
Bill text · Current law (26 U.S.C. 7803)
26 U.S.C. 6402rewrittenby S. 5441 Sec. 603(a)
(l) Explanation of reason for refund disallowance; appeals.—(1) In general.— Not later than the applicable date, the Secretary shall review any claim for refund, make a determination with respect to such claim, and, in the case of a disallowance of such claim (in whole or in part), provide the taxpayer with a detailed written explanation for such disallowance, which shall—(A) be mailed to the last known address of the taxpayer, and(B) in the case of any taxpayer entitled to an appeal of such determination, include instructions for appealing such disallowance to the Internal Revenue Service Independent Office of Appeals.(2) Failure to make timely determination.—(A) In general.— In the case of any claim for refund for which the Secretary fails to satisfy the requirements of paragraph (1) by the applicable date, for purposes of determining interest on any overpayment for any period subsequent to such date, the overpayment rate (as established under section 6621(a)(1)) shall be increased by 1 percentage point.(B) Limitation.— With respect to any claim for refund described in subparagraph (A), the amount of any increase in interest on any overpayment pursuant to such subparagraph shall not exceed $500.(C) Adjustment for inflation.—(i) In general.— In the case of any claim for refund filed during any calendar year beginning after 2026, the $500 amount in subparagraph (B) shall be increased by an amount equal to—(I) such dollar amount, multiplied by(II) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year, determined by substituting "calendar year 2024" for "calendar year 2016" in subparagraph (A)(ii) thereof.(ii) Rounding.— If any amount determined under clause (i) is not a multiple of $50, such amount shall be rounded to the nearest multiple of $50.(3) Appeals.—(A) In general.— Any disallowance of a claim for refund may, within 30 days after the date such disallowance is mailed (or, if mailed to an address outside of the United States, 90 days), be appealed to the Internal Revenue Service Independent Office of Appeals. Notwithstanding paragraph (4) of section 6532(a), during the period in which any such appeal is pending before the Internal Revenue Service Independent Office of Appeals (and for 30 days thereafter), the 2-year period in paragraph (1) of such section for filing suit for refund after disallowance of a claim shall be suspended.(B) Deemed disallowance.— For purposes of subparagraph (A), in the case of any claim for refund for which the Secretary has failed to make a determination with respect to such claim by the date described in paragraph (5)(A), the taxpayer may elect for such claim to be deemed to have been disallowed by the Secretary as of such date.(4) Frivolous claims.—(A) In general.— In the case of any frivolous claim—(i) paragraphs (1) and (3) shall not apply, and(ii) not later than the applicable date, written notification of the denial of such claim shall be mailed to the last known address of the taxpayer.(B) Definition.— For purposes of this paragraph, the term frivolous claim means a claim for refund which is based on—(i) a position which the Secretary has identified as frivolous for purposes of subsection (c) of section 6702, or(ii) a position which is substantially similar to a position described in clause (i).(5) Applicable date.— For purposes of this subsection, the term applicable date means, with respect to any claim for refund—(A) the date which is 12 months after the date of receipt of such claim by the Secretary, or(B) such other date as is agreed to by the Secretary and the taxpayer.
The bill says: Subsection (l) of section 6402 is amended to read as follows:
Bill text · Current law (26 U.S.C. 6402)
26 U.S.C. 7122(e)changedby S. 5441 Sec. 604(1)
(1) for an independent administrative review of—(A) any determination that an offer-in-compromise be returned to the taxpayer because such offer-in-compromise is not accepted for processing or is otherwise determined to be nonprocessable before such determination is communicated to the taxpayer, and(B) any rejection of a proposed offer-in-compromise or installment agreement made by a taxpayer under this section or section 6159 before such rejection is communicated to the taxpayer, and
The bill says: by striking paragraph (1) and inserting the following:
Bill text · Current law (26 U.S.C. 7122)
26 U.S.C. 7122(e)(2)changedby S. 5441 Sec. 604(2)
(2) which allow a taxpayer to appeal any rejection of such offer or agreementany determination described in paragraph (1)(A) or any rejection described in paragraph (1)(B) to the Internal Revenue Service Independent Office of Appeals.
The bill says: in paragraph (2), by striking "any rejection of such offer or agreement" and inserting "any determination described in paragraph (1)(A) or any rejection described in paragraph (1)(B)".
Bill text · Current law (26 U.S.C. 7122)
26 U.S.C. 7803(e)(3)(B)changedby S. 5441 Sec. 605(a)
The bill says: in subparagraph (B), by striking "and" at the end,
Bill text · Current law (26 U.S.C. 7803)
26 U.S.C. 7803(e)(3)(C)changedby S. 5441 Sec. 605(a)
The bill says: in subparagraph (C), by striking the period at the end and inserting ", and", and
Bill text · Current law (26 U.S.C. 7803)
26 U.S.C. 7803(e)(3)added (D)by S. 5441 Sec. 605(a)
(D) without exception, evaluates and considers all hazards of litigation in resolving any case referred to the Internal Revenue Service Independent Office of Appeals.
The bill says: by adding at the end the following new subparagraph:
Bill text · Current law (26 U.S.C. 7803)
26 U.S.C. 7803(e)changedby S. 5441 Sec. 605(a)
(4) Right of appeal.—(A) In general.— Except as otherwise provided under this title, the resolution process described in paragraph (3) shall be available to all taxpayers with respect to any determination by the Secretary concerning a Federal tax controversy regarding subtitles A, B, or C and relating to—(i) liability for, or any claim for refund of, any tax,(ii) liability for, or any claim for refund of, any penalty or addition to tax,(iii) eligibility for alternatives to collection of a tax liability, such as an installment agreement or compromise under section 6159 or 7122,(iv) any determination to deny or revoke the tax-exempt status of an organization, or(v) any exercise of discretion by the Secretary with respect to any determination described in clauses (i) through (iv).(B) Exceptions.— Notwithstanding subparagraph (A), the Secretary may restrict access to the resolution process described in paragraph (3) with respect to any appeal—(i) to the extent that such appeal is based on a claim that—(I) a law is unconstitutional, unless there is a final and unreviewable decision rendered by a Federal court that the relevant provision of such law is unconstitutional, or(II) a regulation, notice, or revenue procedure which was issued by the Secretary is procedurally invalid, unless there is a final and unreviewable decision rendered by a Federal court that the relevant provision of such regulation, notice, or revenue procedure is procedurally invalid,(ii) which—(I) is based on a position which—(aa) a Federal court has determined to be frivolous, and(bb) the Secretary has identified as frivolous for purposes of subsection (c) of section 6702,(II) is substantially similar to a position described in subclause (I), or(III) relates to any penalty imposed under such section with respect to such position,(iii) which relates to any matter agreed upon pursuant to an agreement under section 7121,(iv) subject to subparagraph (C), during any period in which—(I) the Secretary is actively investigating whether to refer the taxpayer to the Attorney General for criminal prosecution,(II) a recommendation made by the Secretary to the Attorney General for the criminal prosecution of the taxpayer for any offense connected with the administration or enforcement of the internal revenue laws is pending, or(III) any criminal prosecution of the taxpayer, or of any other person in a case in which the taxpayer is a witness, for any offense connected with the administration or enforcement of the internal revenue laws is pending, or(v) with respect to any issue in a case which, based on the relevant facts and circumstances of such case, the Chief Counsel for the Internal Revenue Service—(I) has designated for litigation, and(II) is prepared to proceed with such litigation in a timely manner.(C) Exception for certain criminal prosecutions.— Subparagraph (B)(iv) shall not apply if the Chief Counsel for the Internal Revenue Service determines that the resolution process described in paragraph (3) would not interfere with the criminal prosecution of a taxpayer.(D) Notice to tax-exempt organizations.— In the case of any determination described in subparagraph (A)(iv), the Secretary shall provide written notice to the organization of the availability of the resolution process described in paragraph (3).(E) Definitions.— In this paragraph—(i) Federal tax controversy.— The term Federal tax controversy means a dispute described in paragraph (2) or (3) of section 301.7803–2 of title 26, Code of Federal Regulations (as in effect on the date of enactment of the Taxpayer Assistance and Service Act).(ii) Procedurally invalid.— The term procedurally invalid means, with respect to any regulation, notice, or revenue procedure, that such regulation, notice, or revenue procedure failed to comply with any applicable requirement under subchapter II of chapter 5 and chapter 7 of title 5, United States Code (commonly known as the "Administrative Procedure Act").(F) Rule of construction.— Nothing in this paragraph shall be construed to limit the availability of the resolution process described in paragraph (3) solely to the Federal tax controversies described in subparagraph (A).
The bill says: by striking paragraph (4) and inserting the following new paragraph:
Bill text · Current law (26 U.S.C. 7803)
26 U.S.C. 7803(e)(5)renumberedby S. 5441 Sec. 605(a)
The bill says: by redesignating subparagraph (D) as subparagraph (E), and
Bill text · Current law (26 U.S.C. 7803)
26 U.S.C. 7803(e)(5)added (D)by S. 5441 Sec. 605(a)
(D) Clarification of Tax Court authority.— In any case before the Tax Court, the Tax Court may direct the parties to request referral to the Internal Revenue Service Independent Office of Appeals in any case in which the Tax Court determines that the resolution process described in paragraph (3) is appropriate.
The bill says: by inserting after subparagraph (C) the following new subparagraph:
Bill text · Current law (26 U.S.C. 7803)
26 U.S.C. 7623(b)changedby S. 5441 Sec. 701(a)
The bill says: by striking "appealed to" and inserting "reviewed by"; and
Bill text · Current law (26 U.S.C. 7623)
26 U.S.C. 7623(b)addedby S. 5441 Sec. 701(a)
The bill says: by adding at the end the following: "Any review by the Tax Court under the preceding sentence shall be de novo and shall be based on the administrative record established at the time of the original determination and any additional newly discovered or previously unavailable evidence.".
Bill text · Current law (26 U.S.C. 7623)
26 U.S.C. 7623(b)changedby S. 5441 Sec. 701(b)
The bill says: The heading of paragraph (4) of section 7623(b) is amended by striking "Appeal" and inserting "Review".
Bill text · Current law (26 U.S.C. 7623)
2 U.S.C. 905renumberedby S. 5441 Sec. 702(a)
The bill says: by redesignating subsection (k) as subsection (l); and
Bill text · Current law (2 U.S.C. 905)
2 U.S.C. 905added (k)by S. 5441 Sec. 702(a)
(k) Awards to whistleblowers.— An award authorized under section 7623 of the Internal Revenue Code of 1986 shall be exempt from reduction under any order issued under this part.
The bill says: by inserting after subsection (j) the following:
Bill text · Current law (2 U.S.C. 905)
26 U.S.C. 7623(b)added (D)by S. 5441 Sec. 703(a)
(D) Whistleblower anonymity before the Tax Court.— Notwithstanding sections 7458 and 7461, a whistleblower shall proceed anonymously before the Tax Court for all proceedings under this section absent a finding by the Tax Court that a societal interest exists for disclosing the whistleblower’s identity which exceeds the potential harm disclosure could cause to the whistleblower.
The bill says: Paragraph (6) of section 7623(b) is amended by adding at the end the following new subparagraph:
Bill text · Current law (26 U.S.C. 7623)
26 U.S.C. 7623(b)added (7)by S. 5441 Sec. 705(a)
(7) Interest.—(A) In general.— If the Secretary has not provided notice to an individual described in paragraph (1) of a preliminary award recommendation before the applicable date, the amount of any award under this subsection shall include interest from such date at the overpayment rate under section 6621(a).(B) Exception.— No interest shall accrue under this paragraph after the date on which the Secretary provides notice to the individual of a preliminary award recommendation.(C) Applicable date.— For purposes of this paragraph, the applicable date is the date that is 12 months after the first date on which—(i) all of the proceeds resulting from actions subject to the award recommendation have been collected, and(ii) either—(I) the statutory period for filing a claim or suit for refund has expired, or(II) the taxpayers subject to the actions and the Secretary have agreed with finality to the tax or other liabilities for the periods at issue, and either the taxpayers have waived the right to file a claim or suit for refund or any claim or suit for refund has been resolved.
The bill says: Section 7623(b) is amended by adding at the end the following new paragraph:
Bill text · Current law (26 U.S.C. 7623)
26 U.S.C. 62(a)(21)(A)(i)changedby S. 5441 Sec. 706(a)
The bill says: Section 62(a)(21)(A)(i) is amended by striking "7623(b)" and inserting "7623".
Bill text · Current law (26 U.S.C. 62)
26 U.S.C. 3402(p)renumberedby S. 5441 Sec. 901(a)
(3) Voluntary withholding on certain non-wage remuneration.—(A) In general.— If, at the time a payment of applicable non-wage remuneration is made to any person, there is a voluntary agreement in effect between the person making and the person receiving the payment that the applicable non-wage remuneration be subject to withholding, then for purposes of this chapter and so much of subtitle F as relates to this chapter, such payment shall be treated as if it were a payment of wages by an employer to an employee.(B) Applicable non-wage remuneration.— For purposes of this subsection, the term applicable non-wage remuneration means remuneration for services performed by an individual which (without regard to this paragraph) does not constitute wages.(C) Regulations and guidance.— Not later than the date that is 18 months after the date of the enactment of this subparagraph, the Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the provisions of this section, including such regulations or guidance for determining the amount to be deducted and withheld and the types of payments which are considered to be applicable non-wage remuneration.
The bill says: Section 3402(p) is amended by redesignating paragraph (3) as paragraph (4) and by inserting after paragraph (2) the following new paragraph:
Bill text · Current law (26 U.S.C. 3402)
26 U.S.C. 7502(c)changedby S. 5441 Sec. 902(a)
The bill says: in the heading, by inserting "and payment" after "filing",
Bill text · Current law (26 U.S.C. 7502)
26 U.S.C. 7502(c)(2)changedby S. 5441 Sec. 902(a)
The bill says: in the heading, by striking "; electronic filing", and
Bill text · Current law (26 U.S.C. 7502)
26 U.S.C. 7502(c)(2)changedby S. 5441 Sec. 902(a)
The bill says: by striking "and electronic filing", and
Bill text · Current law (26 U.S.C. 7502)
26 U.S.C. 7502(c)added (3)by S. 5441 Sec. 902(a)
(3) Electronic filing and payment.—(A) In general.— In the case of any document or payment which the Secretary has permitted to be filed or made by electronic means, if such document or payment is—the date that such document or payment was authorized to be submitted (as described in clause (i)) shall be deemed to be the date that such document was filed or such payment was made.(i) authorized to be submitted by the taxpayer using a permitted electronic means to the agency, officer, or office to which the document was required to be filed (or payment was required to be made) on or before the prescribed date (or within the period required) with respect to such document or payment, and(ii) received (or, in the case of a payment, received and accounted for) no later than 3 business days after the prescribed date or period required with respect to such document or payment,(B) Exception.— This paragraph shall not apply to any payment if the Secretary determines that the taxpayer (or any intermediary used by the taxpayer) used a system designed with a principal purpose of delaying the transfer of funds to the Treasury to derive economic benefit from the period of such delay.(C) Regulations.— Not later than the date which is 1 year after the date of enactment of the Taxpayer Assistance and Service Act, the Secretary shall issue such regulations or other guidance as the Secretary determines necessary to carry out the purposes of this paragraph, including regulations or other guidance describing the records or proof sufficient to demonstrate timely electronic submission.
The bill says: by adding at the end the following:
Bill text · Current law (26 U.S.C. 7502)
26 U.S.C. 7602(c)changedby S. 5441 Sec. 903(a)
The bill says: by striking "and" at the end of subparagraph (A),
Bill text · Current law (26 U.S.C. 7602)
26 U.S.C. 7602(c)renumberedby S. 5441 Sec. 903(a)
The bill says: by redesignating subparagraph (B) as subparagraph (C) and by inserting after subparagraph (A) the following new subparagraph:
Bill text · Current law (26 U.S.C. 7602)
26 U.S.C. 7602(c)rewrittenby S. 5441 Sec. 903(a)
The bill says: by amending subparagraph (C), as redesignated by paragraph (2), to read as follows:
Bill text · Current law (26 U.S.C. 7602)
26 U.S.C. 7602(c)(3)renumberedby S. 5441 Sec. 903(b)
The bill says: by redesignating subparagraphs (A), (B), and (C) as clauses (i), (ii), and (iii), respectively, and by moving such clauses 2 ems to the right,
Bill text · Current law (26 U.S.C. 7602)
26 U.S.C. 7602(c)(3)changedby S. 5441 Sec. 903(b)
The bill says: by striking "This subsection" and inserting the following:
Bill text · Current law (26 U.S.C. 7602)
26 U.S.C. 7602(c)(3)added (B)by S. 5441 Sec. 903(b)
(B) Good cause.— For purposes of subparagraph (A)(ii), good cause includes a reasonable belief that compliance with this subsection will lead to—(i) attempts by any person to conceal, remove, destroy, or alter records or assets that may be relevant to any tax examination or collection activity;(ii) attempts by any person to prevent other persons, through intimidation, bribery, or collusion, from communicating any information that may be relevant to any tax examination or collection activity; or(iii) attempts by any person to flee, or otherwise avoid testifying or producing records that may be relevant to any tax examination or collection activity.
The bill says: by adding at the end the following new subparagraph:
Bill text · Current law (26 U.S.C. 7602)
26 U.S.C. 6654(i)(1)(D)(i)changedby S. 5441 Sec. 904(a)
The bill says: Section 6654(i)(1)(D)(i) is amended by striking "March 1" and inserting "April 15".
Bill text · Current law (26 U.S.C. 6654)
26 U.S.C. 7803added (g)by S. 5441 Sec. 905
(g) Business Child Care Liaison.—(1) In general.— The Commissioner of Internal Revenue shall appoint within the Internal Revenue Service a Business Child Care Liaison. The appointment shall be made without regard to the provisions of title 5, United States Code, relating to appointments in the competitive service or Senior Executive Service. At the Commissioner's discretion, the Commissioner may create an office with additional support staff to assist the Business Child Care Liaison in carrying out the duties described in this subsection.(2) Duties.— The Business Child Care Liaison shall—(A) act as a liaison between the Internal Revenue Service, employer-provided child care benefit advocates, businesses considering providing or expanding child care benefits for their employees, state workforce boards, state economic development agencies, child care resource and referral agencies, tribal organizations (as defined in section 4(l) of the Indian Self-Determination and Education Assistance Act), and other stakeholders, including child development experts,(B) provide public education and assistance related to the expansion of employer-provided child care benefits through the establishment and maintenance of practices that promote employer-provided child care benefits, including the use of dependent care assistance programs (as defined in section 129(d)), on-site or subsidized child care, Dependent Care Flexible Spending Accounts, child care stipends, near-site child care partnerships, shared and pooled child-care arrangements, backup child care, and resource and referral services,(C) issue a fact sheet for use by tax return preparers listing the different tax benefits for employer-provided child care and the appropriate rules for each such benefit,(D) help facilitate communication between businesses and the Internal Revenue Service about the operational challenges and opportunities that exist to improve the use of Federally incentivized child care benefits such as dependent care assistance programs (as so defined), Dependent Care Flexible Spending Accounts, and the credit under section 45F,(E) in collaboration with the General Services Administration, within 120 days of the date of the enactment of this subsection, establish a link on the homepage of SAM.gov, which allows website visitors to access a landing page on the SAM.gov website which is tailored to helping businesses learn about utilizing dependent care assistance programs (as so defined), Dependent Care Flexible Spending Accounts, and the credit under section 45F, resources for understanding the rules and regulations with these programs, and the benefits of utilizing these programs on worker recruitment, retention, productivity, and well-being,(F) identify and recommend to Congress potential legislative and administrative changes to increase practices that promote employer-provided child care benefits, and(G) coordinate with other Federal agencies and officials, including the Secretary, the Administrator of the Small Business Administration, the Secretary of Commerce, the Secretary of Health and Human Services, the Secretary of the Interior, the Secretary of Labor, and the Secretary of Education, or the designee of any such individual, and State and local governments on outreach and education to inform employers and employees about the possibilities and benefits of employer-provided child care benefits and particularly reducing information barriers for small businesses.(3) Consultation and input.— The Commissioner of Internal Revenue shall solicit advice and input from the Business Child Care Liaison in developing regulations or interpretations of this title that relate to employer-provided child care benefits.(4) Compensation.— The Business Child Care Liaison shall be entitled to compensation at the same rate as the rate of basic pay in effect for a position at level V of the Executive Schedule under section 5316 of title 5, United States Code.(5) Annual report.—(A) In general.— Not later than December 31 of each calendar year beginning after the date of the enactment of this subsection, the Business Child Care Liaison shall submit a report to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives on the activities of the Business Child Care Liaison during the fiscal year ending during such calendar year.(B) Contents.— Each report submitted pursuant to subparagraph (A) shall—(i) summarize the assistance requests received by the Business Child Care Liaison during the fiscal year ending during the calendar year of such report,(ii) describe the activities conducted by the Business Child Care Liaison, including the activities described under subparagraphs (B) and (F) of paragraph (2), and evaluate the effectiveness of the Business Child Care Liaison during such fiscal year,(iii) describe any significant problems the Business Child Care Liaison has identified during such fiscal year and ways to mitigate such problems,(iv) contain recommendations for any administrative or legislative action which may be appropriate to resolve barriers to, and to incentivize, practices which promote employer-provided child care benefits, and(v) describe progress related to employer-provided child care benefits in businesses in the United States, including data updated at least annually on the utilization of dependent care assistance programs, Dependent Care Flexible Spending Accounts, and the credit under section 45F, in particular—(I) the number of employers utilizing these tax benefits,(II) a breakdown of the size of employers utilizing these tax benefits, and(III) other relevant information as deemed appropriate by the Business Child Care Liaison.(C) Concurrent submission.— The Business Child Care Liaison shall submit a copy of each report submitted pursuant to subparagraph (A) to the Commissioner of Internal Revenue, and any other appropriate official, at the same time such repor
The bill says: Section 7803 is amended by adding at the end the following new subsection:
Bill text · Current law (26 U.S.C. 7803)
26 U.S.C. 6103(l)(13)(D)added (vii)by S. 5441 Sec. 1001(a)
(vii) Redisclosure to the congressional budget office.— Authorized persons may, upon written request by the Director of the Congressional Budget Office to the Secretary of Education, redisclose return information received under subparagraphs (A), (B), and (C) to officers and employees of the Congressional Budget Office for the purpose of, but only to the extent necessary in, carrying out the purposes described in subclause (III) of clause (i).
The bill says: Section 6103(l)(13)(D) is amended by adding at the end the following new clause:
Bill text · Current law (26 U.S.C. 6103)
26 U.S.C. 6103(l)(13)(F)changedby S. 5441 Sec. 1001(b)
The bill says: Section 6103(l)(13)(F) is amended by striking "(iv) (v), or (vi)" and inserting "(iv), (v), (vi), or (vii)".
Bill text · Current law (26 U.S.C. 6103)
26 U.S.C. 6011(e)changedby S. 5441 Sec. 1002(a)
(6) Partnerships required to file on magnetic media.— Notwithstanding paragraph (2)(A), the Secretary shall require a partnership to file returns on magnetic media if, at the close of the partnership's taxable year—(A) the partnership has more than 50 partners, or(B) the value of the partnership’s assets equals or exceeds $1,000,000, as determined under regulations prescribed by the Secretary.
The bill says: by striking the first paragraph (6), as added by section 2301(b) of the Taxpayer First Act, and inserting the following:
Bill text · Current law (26 U.S.C. 6011)
26 U.S.C. 6011(e)renumberedby S. 5441 Sec. 1002(a)
The bill says: by redesignating the second paragraph (6), as added by section 202(d) of the Setting Every Community Up for Retirement Enhancement Act of 2019, as paragraph (7).
Bill text · Current law (26 U.S.C. 6011)
26 U.S.C. 6501(c)(1)changedby S. 5441 Sec. 1003(a)
The bill says: by inserting "by the taxpayer" after "intent", and
Bill text · Current law (26 U.S.C. 6501)
26 U.S.C. 6501(c)(1)addedby S. 5441 Sec. 1003(a)
The bill says: by adding at the end the following new sentence: "For purposes of this paragraph, in the case of a joint return under section 6013, intent by either spouse to evade tax with respect to such return shall be treated as intent by the taxpayer, and this paragraph shall apply to both spouses.".
Bill text · Current law (26 U.S.C. 6501)
26 U.S.C. 6071(b)changedby S. 5441 Sec. 1005(a)
The bill says: by striking "Returns made under" and inserting the following:
Bill text · Current law (26 U.S.C. 6071)
26 U.S.C. 6071(b)added (2)by S. 5441 Sec. 1005(a)
(2) Special rule for certain returns.—(A) In general.— In the case of any return to which this paragraph applies and which is filed electronically, such return shall be filed on or before January 31 of the year following the calendar year to which such return relates.(B) Returns.— This paragraph shall apply to any return required to be filed under section 6041 (other than returns and statements required to be filed with respect to nonemployee compensation), 6042, 6047(d), 6049, 6050F, or 6050W.
The bill says: by adding at the end the following new paragraph:
Bill text · Current law (26 U.S.C. 6071)
26 U.S.C. 408(i)(1)changedby S. 5441 Sec. 1005(b)
The bill says: Section 408(i)(1) is amended by inserting "(but not later than January 31 of the calendar year following the calendar year to which reports relate in the case of reports relating to distributions)" after "at such time".
Bill text · Current law (26 U.S.C. 408)
26 U.S.C. 6103(e)(11)changedby S. 5441 Sec. 1006(a)
The bill says: Section 6103(e)(11) is amended by inserting "7213B," after "7213A,".
Bill text · Current law (26 U.S.C. 6103)
26 U.S.C. 6105(d)changedby S. 5441 Sec. 1006(a)
The bill says: Section 6105(d) is amended by inserting "7213B," after "7213A,".
Bill text · Current law (26 U.S.C. 6105)
26 U.S.C. 7431(e)changedby S. 5441 Sec. 1006(a)
If any person is criminally charged by indictment or information with—(1) inspection or disclosure of a taxpayer's return or return information in violation of—(A) paragraph (1) or (2) of section 7213(a),(B) section 7213A(a), or(C) subparagraph (B) of section 1030(a)(2) of title 18, United States Code, or(2) failure to protect the confidentiality of returns or return information which results in the unauthorized disclosure of the taxpayer's return or return information in violation of section 7213B(a),
The bill says: Section 7431(e) is amended by striking the first sentence and inserting the following:
Bill text · Current law (26 U.S.C. 7431)
26 U.S.C. 7513(c)changedby S. 5441 Sec. 1006(a)
The bill says: Section 7513(c) is amended by striking "section 7213" and inserting "sections 7213 and 7213B".
Bill text · Current law (26 U.S.C. 7513)
26 U.S.C. 7431(c)(1)(A)changedby S. 5441 Sec. 1006(b)
The bill says: Section 7431(c)(1)(A) is amended by striking "$1,000" and inserting "$5,000".
Bill text · Current law (26 U.S.C. 7431)