,,ii  #aacth ,,congress  #ast ,session  
,s4 #gbe  ,,in ,,the ,,senate ,,of ,,the
 ,,united ,,states  ,april #ae1 #bjac   
,mr4 ,cornyn introduced the following   
bill2 which was read twice and referred 
to the ,committee on ,finance  ,a ,,bill
  ,to provide a taxpayer bill of rights 
for small businesses4  #a4 ,short title2
 table of contents  7a7 ,short title    
,this ,act may be cited as the ,small   
,business ,taxpayer ,bill of ,rights    
,act of #bjac4  7b7 ,table of contents  
,the table of contents of this ,act is  
as follows3  ,sec4 #a4 ,short title2    
table of contents4 ,sec4 #b4            
,modification of standards for awarding 
of costs and certain fees4 ,sec4 #c4    
,civil damages allowed for reckless or  
intentional disregard of internal       
revenue laws4 ,sec4 #d4 ,modifications  
relating to certain offenses by officers
 and employees in connection with       
revenue laws4 ,sec4 #e4 ,modifications  
relating to civil damages for           
unauthorized inspection or disclosure of

 returns and return information4 ,sec4  
#f4 ,interest abatement reviews4 ,sec4  
#g4 ,ban on ex parte discussions4 ,sec4 
#h4 ,alternative dispute resolution     
procedures4 ,sec4 #i4 ,extension of time
 for contesting ,,irs levy4 ,sec4 #aj4  
,waiver of installment agreement fee4   
,sec4 #aa4 ,suspension of running of    
period for filing petition of spousal   
relief and collection cases4 ,sec4 #ab4 
,venue for appeal of spousal relief and 
collection cases4 ,sec4 #ac4 ,increase  
in monetary penalties for certain       
unauthorized disclosures of information4
 ,sec4 #ad4 ,de novo tax court review of
 claims for equitable innocent spouse   
relief4 ,sec4 #ae4 ,ban on raising new  
issues on appeal4  #b4 ,modification of 
standards for awarding of costs and     
certain fees  7a7 ,small businesses     
eligible without regard to net worth    
,subparagraph 7,d7 of section           
#gdcj7;c77#d7 of the ,internal ,revenue 
,code of #aihf is amended by striking   
and at the end of clause 7i71 by        

striking the period at the end of clause
 7ii7 and inserting and1 and by adding  
at the end the following new clause3    
7iii7 in the case of an eligible small  
business1 the net worth limitation in   
clause 7ii7 of such section shall not   
apply4  4  7b7 ,eligible small business 
,paragraph 7#d7 of section #gdcj7;c7 of 
the ,internal ,revenue ,code of #aihf is
 amended by adding at the end the       
following new subparagraph3  7,f7       
,eligible small business ,for purposes  
of subparagraph 7,d77iii71 the term     
eligible small business means1 with     
respect to any proceeding commenced in a
 taxable year--  7i7 a corporation the  
stock of which is not publicly traded1  
7ii7 a partnership1 or  7iii7 a sole    
proprietorship1  if the average annual  
gross receipts of such corporation1     
partnership1 or sole proprietorship for 
the #c-taxable-year period preceding    
such taxable year does not exceed       
#ej1jjj1jjj4 ,for purposes of applying  
the test under the preceding sentence1  

rules similar to the rules of paragraphs
 7#b7 and 7#c7 of section #ddh7;c7 shall
 apply4  4  7c7 ,effective date ,the    
amendments made by this section shall   
apply to proceedings commenced after the
 date of the enactment of this ,act4    
#c4 ,civil damages allowed for reckless 
or intentional disregard of internal    
revenue laws  7a7 ,increase in amount of
 damages ,section #gdcc7;b7 of the      
,internal ,revenue ,code of #aihf is    
amended by striking #a1jjj1jjj          
7#ajj1jjj1 in the case of negligence7   
and inserting #c1jjj1jjj 7#cjj1jjj1 in  
the case of negligence74  7b7 ,extension
 of time ,to bring action ,section      
#gdcc7;d77#c7 of the ,internal ,revenue 
,code of #aihf is amended by striking #b
 years and inserting #e years4  7c7     
,effective date ,the amendments made by 
this section shall apply to actions of  
employees of the ,internal ,revenue     
,service after the date of the enactment
 of this ,act4  #d4 ,modifications      
relating to certain offenses by officers

 and employees in connection with       
revenue laws  7a7 ,increase in penalty  
,section #gbad of the ,internal ,revenue
 ,code of #aihf is amended--  7#a7 by   
striking #aj1jjj in subsection 7a7 and  
inserting #be1jjj1 and  7#b7 by striking
 #e1jjj in subsection 7b7 and inserting 
#aj1jjj4  7b7 ,effective date ,the      
amendments made by this section shall   
take effect on the date of the enactment
 of this ,act4  #e4 ,modifications      
relating to civil damages for           
unauthorized inspection or disclosure of
 returns and return information  7a7    
,increase in amount of damages          
,subparagraph 7,a7 of section           
#gdca7;c77#a7 of the ,internal ,revenue 
,code of #aihf is amended by striking   
#a1jjj and inserting #aj1jjj4  7b7      
,effective date ,the amendment made by  
this section shall apply to inspections 
and disclosure occurring on and after   
the date of the enactment of this ,act4 
#f4 ,interest abatement reviews  7a7    
,filing period for interest abatement   

cases  7#a7 ,in general ,subsection 7h7 
of section #fdjd of the ,internal       
,revenue ,code of #aihf is amended--    
7,a7 by striking ,review of denial in   
the heading and inserting ,judicial     
review1 and  7,b7 by striking #8if such 
action is brought' and all that follows 
in paragraph 7#a7 and inserting  if such
 action is brought-- 7,a7 at any time   
after the earlier of--  7i7 the date of 
the mailing of the ,secretary's final   
determination not to abate such         
interest1 or  7ii7 the date which is    
#ahj days after the date of the filing  
with the ,secretary 7in such form as the
 ,secretary may prescribe7 of a claim   
for abatement under this section1 and   
7,b7 not later than the date which is   
#ahj days after the date described in   
subparagraph 7,a77i74  4  7#b7          
,effective date ,the amendments made by 
this subsection shall apply to claims   
for abatement of interest filed with the
 ,secretary after the date of the       
enactment of this ,act4  7b7 ,small tax 

case election for interest abatement    
cases  7#a7 ,in general ,subsection 7f7 
of section #gdfc of the ,internal       
,revenue ,code of #aihf is amended--    
7,a7 by striking and at the end of      
paragraph 7#a71  7,b7 by striking the   
period at the end of paragraph 7#b7 and 
inserting 1 and1 and  7,c7 by adding at 
the end the following new paragraph3    
7#c7 a petition to the ,tax court under 
section #fdjd7;h7 in which the amount of
 interest abatement sought does not     
exceed #ej1jjj4  4  7#b7 ,effective date
 ,the amendments made by this subsection
 shall apply to--  7,a7 cases pending as
 of the day after the date of the       
enactment of this ,act1 and  7,b7 cases 
commenced after such date of enactment4 
#g4 ,ban on ex parte discussions  7a7   
,in general ,notwithstanding section    
#ajja7;a77#d7 of the ,internal ,revenue 
,service ,restructuring and ,reform ,act
 of #aiih1 the ,internal ,revenue       
,service shall prohibit any ex parte    
communications between officers in the  

,internal ,revenue ,service ,office of  
,appeals and other ,internal ,revenue   
,service employees with respect to any  
matter pending before such officers4    
7b7 ,termination of employment for      
misconduct ,subject to subsection 7c71  
the ,commissioner of ,internal ,revenue 
shall terminate the employment of any   
employee of the ,internal ,revenue      
,service if there is a final            
administrative or judicial determination
 that such employee committed any act or
 omission prohibited under subsection   
7a7 in the performance of the employee's
 official duties4 ,such termination     
shall be a removal for cause on charges 
of misconduct4  7c7 ,determination of   
commissioner  7#a7 ,in general ,the     
,commissioner of ,internal ,revenue may 
take a personnel action other than      
termination for an act prohibited under 
subsection 7a74  7#b7 ,discretion ,the  
exercise of authority under paragraph   
7#a7 shall be at the sole discretion of 
the ,commissioner of ,internal ,revenue 

and may not be delegated to any other   
officer4 ,the ,commissioner of ,internal
 ,revenue1 in his sole discretion1 may  
establish a procedure which will be used
 to determine whether an individual     
should be referred to the ,commissioner 
of ,internal ,revenue for a             
determination by the ,commissioner under
 paragraph 7#a74  7#c7 ,no appeal ,any  
determination of the ,commissioner of   
,internal ,revenue under this subsection
 may not be appealed in any             
administrative or judicial proceeding4  
7d7 ,,tigta reporting of termination or 
mitigation ,section #ghjc7;d77#a77;,e7  
of the ,internal ,revenue ,code of #aihf
 is amended by inserting or section #g  
of the ,small ,business ,taxpayer ,bill 
of ,rights ,act of #bjac after #aiih4   
#h4 ,alternative dispute resolution     
procedures  7a7 ,in general ,section    
#gabc of the ,internal ,revenue ,code of
 #aihf is amended by adding at the end  
the following new subsection3  7c7      
,availability of dispute resolutions    

7#a7 ,in general ,the procedures        
prescribed under subsection 7b77#a7 and 
the pilot program established under     
subsection 7b77#b7 shall provide that a 
taxpayer may request mediation or       
arbitration in any case unless the      
,secretary has specifically excluded the
 type of issue involved in such case or 
the class of cases to which such case   
belongs as not appropriate for          
resolution under such subsection4 ,the  
,secretary shall make any determination 
that excludes a type of issue or a class
 of cases public within #e working days 
and provide an explanation for each     
determination4  7#b7 ,independent       
mediators  7,a7 ,in general ,the        
procedures prescribed under subsection  
7b77#a7 shall provide the taxpayer an   
opportunity to elect to have the        
mediation conducted by an independent1  
neutral individual not employed by the  
,office of ,appeals4  7,b7 ,cost and    
selection  7i7 ,in general ,any taxpayer
 making an election under subparagraph  

7,a7 shall be required--  7,i7 to share 
the costs of such independent mediator  
equally with the ,office of ,appeals1   
and  7,,ii7 to limit the selection of   
the mediator to a roster of recognized  
national or local neutral mediators4    
7ii7 ,exception ,clause 7i77,i7 shall   
not apply to any taxpayer who is an     
individual or who was a small business  
in the preceding calendar year if such  
taxpayer had an adjusted gross income   
that did not exceed #bej percent of the 
poverty level1 as determined in         
accordance with criteria established by 
the ,director of the ,office of         
,management and ,budget1 in the taxable 
year preceding the request4  7iii7      
,small business ,for purposes of clause 
7ii71 the term small business has the   
meaning given such term under section   
#da7;b77#c77;,d77iii74  7#c7            
,availability of process ,the procedures
 prescribed under subsection 7b77#a7 and
 the pilot program established under    
subsection 7b77#b7 shall provide the    

opportunity to elect mediation or       
arbitration at the time when the case is
 first filed with the ,office of        
,appeals and at any time before         
deliberations in the appeal commence4  4
  7b7 ,effective date ,the amendment    
made by this section shall take effect  
on the date of the enactment of this    
,act4  #i4 ,extension of time for       
contesting ,,irs levy  7a7 ,extension of
 time for return of property subject to 
levy ,subsection 7b7 of section #fcdc of
 the ,internal ,revenue ,code of #aihf  
is amended by striking #i months and    
inserting #c years4  7b7 ,period of     
limitation on suits ,subsection 7c7 of  
section #fecb of the ,internal ,revenue 
,code of #aihf is amended--  7#a7 in    
paragraph 7#a7 by striking #i months0   
and inserting #8#8#c years1 and  7#b7 in
 paragraph 7#b7 by striking #i-month and
 inserting #c-year4  7c7 ,effective date
 ,the amendments made by this section   
shall apply to--  7#a7 levies made after
 the date of the enactment of this ,act1

 and  7#b7 levies made on or before such
 date if the #i-month period has not    
expired under section #fcdc7;b7 of the  
,internal ,revenue ,code of #aihf       
7without regard to this section7 as of  
such date4  #aj4 ,waiver of installment 
agreement fee  7a7 ,in general ,section 
#faei of the ,internal ,revenue ,code of
 #aihf is amended by redesignating      
subsection 7f7 as subsection 7g7 and by 
inserting after subsection 7e7 the      
following new subsection3  7f7 ,waiver  
of installment agreement fee ,the       
,secretary shall waive the fees imposed 
on installment agreements under this    
section for any taxpayer with an        
adjusted gross income that does not     
exceed #bej percent of the poverty      
level1 as determined in accordance with 
criteria established by the ,director of
 the ,office of ,management and ,budget1
 and who has agreed to make payments    
under the installment agreement by      
electronic payment through a debit      
instrument4  4  7b7 ,effective date ,the

 amendment made by this section shall   
take effect on the date of the enactment
 of this ,act4  #aa4 ,suspension of     
running of period for filing petition of
 spousal relief and collection cases    
7a7 ,petitions for spousal relief  7#a7 
,in general ,subsection 7e7 of section  
#fjae of the ,internal ,revenue ,code of
 #aihf is amended by adding at the end  
the following new paragraph3  7#f7      
,suspension of running of period for    
filing petition in title #aa cases ,in  
the case of a person who is prohibited  
by reason of a case under title #aa1    
,united ,states ,code1 from filing a    
petition under paragraph 7#a77;,a7 with 
respect to a final determination of     
relief under this section1 the running  
of the period prescribed by such        
paragraph for filing such a petition    
with respect to such final determination
 shall be suspended for the period      
during which the person is so prohibited
 from filing such a petition1 and for   
#fj days thereafter4  4  7#b7 ,effective

 date ,the amendment made by this       
subsection shall apply to petitions     
filed under section #fjae7;e7 of the    
,internal ,revenue ,code of #aihf after 
the date of the enactment of this ,act4 
7b7 ,collection proceedings  7#a7 ,in   
general ,subsection 7d7 of section #fccj
 of the ,internal ,revenue ,code of     
#aihf is amended--  7,a7 by striking    
appeal such determination to the ,tax   
,court in paragraph 7#a7 and inserting  
petition the ,tax ,court for review of  
such determination1  7,b7 by striking   
,judicial review of determination in the
 heading of paragraph 7#a7 and inserting
 ,petition for review by ,tax ,court1   
7,c7 by redesignating paragraph 7#b7 as 
paragraph 7#c71 and  7,d7 by inserting  
after paragraph 7#a7 the following new  
paragraph3  7#b7 ,suspension of running 
of period for filing petition in title  
#aa cases ,in the case of a person who  
is prohibited by reason of a case under 
title #aa1 ,united ,states ,code1 from  
filing a petition under paragraph 7#a7  

with respect to a determination under   
this section1 the running of the period 
prescribed by such subsection for filing
 such a petition with respect to such   
determination shall be suspended for the
 period during which the person is so   
prohibited from filing such a petition1 
and for #cj days thereafter4  4  7#b7   
,conforming amendment ,subsection 7c7 of
 section #fcbj of such ,code is amended 
by striking 7#b77;,b7 and inserting     
7#c77;,b74  7#c7 ,effective date ,the   
amendments made by this subsection shall
 apply to petitions filed under section 
#fccj of the ,internal ,revenue ,code of
 #aihf after the date of the enactment  
of this ,act4  #ab4 ,venue for appeal of
 spousal relief and collection cases    
7a7 ,in general ,paragraph 7#a7 of      
section #gdhb7;b7 of the ,internal      
,revenue ,code of #aihf is amended--    
7#a7 by striking or at the end of       
subparagraph 7,e71  7#b7 by striking the
 period at the end of subparagraph 7,f7 
and inserting a comma1 and  7#c7 by     

inserting after subparagraph 7,f7 the   
following new subparagraphs3  7,g7 in   
the case of a petition under section    
#fjae7;e71 the legal residence of the   
petitioner1 or  7,h7 in the case of a   
petition under section #fcbj or #fccj-- 
7i7 the legal residence of the          
petitioner if the petitioner is an      
individual1 and  7ii7 the principal     
place of business or principal office or
 agency if the petitioner is an entity  
other than an individual4  4  7b7       
,effective date ,the amendments made by 
this section shall apply to petitions   
filed after the date of enactment of    
this ,act4  #ac4 ,increase in monetary  
penalties for certain unauthorized      
disclosures of information  7a7 ,in     
general ,paragraphs 7#a71 7#b71 7#c71   
and 7#d7 of section #gbac7;a7 of the    
,internal ,revenue ,code of #aihf are   
each amended by striking #e1jjj and     
inserting #aj1jjj4  7b7 ,effective date 
,the amendments made by this section    
shall apply to disclosures made after   

the date of the enactment of this ,act4 
#ad4 ,de novo tax court review of claims
 for equitable innocent spouse relief   
7a7 ,in general ,subparagraph 7,a7 of   
section #fjae7;e77#a7 of the ,internal  
,revenue ,code of #aihf is amended by   
adding at the end the following new     
flush sentence3  ,any review of a       
determination by the ,secretary with    
respect to a claim for equitable relief 
under subsection 7f7 shall be reviewed  
de novo by the ,tax ,court4 4  7b7      
,effective date ,the amendment made by  
this section shall apply to petitions   
filed or pending before the ,tax ,court 
on and after the date of the enactment  
of this ,act4  #ae4 ,ban on raising new 
issues on appeal  7a7 ,in general       
,chapter #gg of the ,internal ,revenue  
,code of #aihf is amended by adding at  
the end the following new section3      
#gebi4 ,prohibition on ,internal        
,revenue ,service raising new issues in 
an internal appeal  7a7 ,in general ,in 
reviewing an appeal of any determination

 initially made by the ,internal        
,revenue ,service1 the ,internal        
,revenue ,service ,office of ,appeals   
may not consider or decide any issue    
that is not within the scope of the     
initial determination4  7b7 ,certain    
issues deemed outside of scope of       
determination ,for purposes of          
subsection 7a71 the following matters   
shall be considered to be not within the
 scope of a determination3  7#a7 ,any   
issue that was not raised in a notice of
 deficiency or an examiner's report     
which is the subject of the appeal4     
7#b7 ,any deficiency in tax which was   
not included in the initial             
determination4  7#c7 ,any theory or     
justification for a tax deficiency which
 was not considered in the initial      
determination4  7c7 ,no inference with  
respect to issues raised by taxpayers   
,nothing in this section shall be       
construed to provide any limitation in  
addition to any limitations in effect on
 the date of the enactment of this      

section on the right of a taxpayer to   
raise an issue1 theory1 or justification
 on an appeal from a determination      
initially made by the ,internal ,revenue
 ,service that was not within the scope 
of the initial determination4  4  7b7   
,clerical amendment ,the table of       
sections for chapter #gg of such ,code  
is amended by adding at the end the     
following new item3  ,sec4 #gebi4       
,prohibition on ,internal ,revenue      
,service raising new issues in an       
internal appeal4  4  7c7 ,effective date
 ,the amendments made by this section   
shall apply to matters filed or pending 
with the ,internal ,revenue ,service    
,office of ,appeals on or after the date
 of the enactment of this ,act4