,,ii #aadth ,,congress #b;d ,session ,s4 #bhji ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,april #ah1 #bjaf ,mr4 ,portman introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to preserve taxpayers' rights to administrative appeal of deficiency determinations1 and for other purposes4 #a4 ,ensuring taxpayer right to appeal 7a7 ,in general ,subsection 7a7 of section #fbab of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking ,in general4--,if the ,secretary and inserting ,in general4-- 7#a7 ,authorization ,if-- 7,a7 the ,secretary 1 7#b7 by striking #dd1 he is authorized and inserting #dd1 and 7,b7 the requirements of paragraph 7#b7 have been met with respect to such deficiency1 the ,secretary is authorized 1 and 7#c7 by adding at the end the following new paragraph3 7#b7 ,opportunity for administrative review in the ,office of ,appeals 7,a7 ,in general ,the requirements of this paragraph are met with respect to a deficiency if1 prior to the issuance of the notice of deficiency under paragraph 7#a7-- 7i7 the taxpayer has been issued a letter of proposed deficiency that explains the basis for the determination of deficiency and allows the taxpayer an opportunity for administrative review in the ,internal ,revenue ,service ,office of ,appeals1 and 7ii7 either-- 7,i7 the time provided in such letter for contacting the ,office of ,appeals has expired and the taxpayer has not so contacted such ,office1 or 7,,ii7 the ,office of ,appeals has issued a decision with respect to such deficiency4 7,b7 ,frivolous tax positions ,the ,secretary is authorized to issue regulations limiting the application of subparagraph 7,a7 in cases involving solely the failure or refusal to comply with the tax laws because of moral1 religious1 political1 constitutional1 conscientious1 or similar grounds1 or for other positions listed as frivolous under section #fgjb7;c74 7,c7 ,cases designated for litigation ,subparagraph 7,a7 shall not apply in the case of issues designated for litigation in accordance with section #gabd4 4 7b7 ,opportunity for appeal if fewer than #fj days remain on statute of limitations ,section #fbab of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7e7 ,opportunity for appeal if fewer than #fj days remain on statute of limitations ,in the case of any issues relating to a potential deficiency with respect to which #fj days or fewer remain in the period applicable under section #feja1 if the taxpayer agrees to the extension of such period by #ab months1 the ,secretary shall issue a letter of proposed deficiency described in subsection 7a77#b77;,a77i7 allowing the taxpayer an opportunity for administrative review of such issues in the ,internal ,revenue ,service ,office of ,appeals before a notice of deficiency is issued under this section4 ,rules similar to the rules of subsection 7a77#b77;,b7 shall apply for purposes of this subsection4 4 7c7 ,effective date ,the amendments made by this section shall apply to notices of deficiency issued after ,april #bj1 #bjaf4 #b4 ,appeals dispute resolution procedures ,subsection 7a7 of section #gabc of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7a7 ,referral to appeals procedures ,the ,secretary shall prescribe procedures by which any taxpayer may request-- 7#a7 early referral of #a or more unresolved issues from the examination or collection division to the ,internal ,revenue ,service ,office of ,appeals1 or 7#b7 consideration by such ,office of ,appeals of issues included in-- 7,a7 a letter of proposed deficiency described in section #fbab7;a77#b77;,a71 or 7,b7 a notice of deficiency pursuant to section #fbab1 whether or not the taxpayer has filed a petition with the ,tax ,court pursuant to section #fbac7;a71 a claim for refund1 or a suit in a district court or the ,united ,states ,court of ,federal ,claims with respect to such issues4 ,such regulations may limit such procedures in cases involving solely the failure or refusal to comply with the tax laws because of moral1 religious1 political1 constitutional1 conscientious1 or similar grounds1 or for other positions listed as frivolous under section #fgjb7;c74 ,such procedures shall not be available in the case of issues designated for litigation in accordance with section #gabd4 4 #c4 ,restriction on ,secretarial authority to designate cases for litigation 7a7 ,in general ,chapter #gd of the ,internal ,revenue ,code of #aihf is amended by redesignating section #gabd as section #gabe and by inserting after section #gabc the following new section3 #gabd4 ,restriction on ,secretarial authority to designate cases for litigation 7a7 ,in general ,the ,secretary may designate issues arising from the examination or collection division for litigation1 and not permit the taxpayer to request consideration of such issues by the ,internal ,revenue ,service ,office of ,appeals under section #gabc7;a71 only to the extent such issues relate to listed transactions 7as defined in section #fgjg;,a7c77#b774 7b7 ,settlement ,in offering terms under a settlement agreement for purposes of the resolution of any issues arising from the examination or collection division1 the ,secretary may offer terms that preclude the taxpayer from requesting consideration of such issues by the ,office of ,appeals under section #gabc7;a7 only to the extent such issues relate to listed transactions 7as defined in section #fgjg;,a7c77#b774 4 7b7 ,clerical amendment ,the table of sections for chapter #gd of the ,internal ,revenue ,code of #aihf is amended by striking the item relating to section #gabd and inserting the following new items3 ,sec4 #gabd4 ,restriction on ,secretarial authority to designate cases for litigation4,sec4 #gabe4 ,cross references4 4 7c7 ,effective date ,the amendments made by this section shall apply to the designation of issues for litigation1 and offers of settlement terms1 after ,april #bj1 #bjaf4 #d4 ,modification of authority to issue designated summons 7a7 ,in general ,paragraph 7#a7 of section #fejc7;j7 of the ,internal ,revenue ,code of #aihf is amended by striking coordinated examination program and inserting coordinated industry case program4 7b7 ,designated summons ,clause 7i7 of section #fejc7;j77#b77;,a7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7i7 the issuance of such summons is preceded by a review and written approval of such issuance by the ,large ,business and ,international ,division ,commissioner and the ,division ,counsel of the ,office of ,chief ,counsel 7or their successors7-- 7,i7 which clearly establishes that the taxpayer did not reasonably cooperate with reasonable requests by the ,secretary for witnesses1 documents1 meetings1 and interviews1 and 7,,ii7 which is attached to such summons1 4 7c7 ,burden of proof ,subsection 7j7 of section #fejc of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new paragraph3 7#d7 ,burden of proof ,in any court proceeding described in paragraph 7#c71 the ,secretary shall bear the burden of proving that the corporation described in paragraph 7#a7 did not reasonably cooperate with reasonable requests by the ,secretary for witnesses1 documents1 meetings1 and interviews4 4 7d7 ,effective date ,the amendments made by this section shall apply to summonses issued after ,april #bj1 #bjaf4 #e4 ,limitation on access of non-,,irs employees to returns and return information acquired by summons 7a7 ,in general ,section #gfjb of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7f7 ,limitation on access of persons other than ,,irs officers and employees ,the authority granted under this section may not be delegated1 directly or indirectly1 to any person authorized to receive returns and return information under section #fajc7n74 4 7b7 ,effective date 7#a7 ,in general ,except as provided in paragraph 7#b71 the amendment made by this section shall take effect on the date of the enactment of this ,act4 7#b7 ,application to contracts in effect ,the amendment made by this section shall apply to any contract in effect under section #fajc7n7 of the ,internal ,revenue ,code of #aihf1 pursuant to temporary ,treasury ,regulation section #cja4gfjb-a,t proposed in ,internal ,revenue ,bulletin #bjad-bh or any similar or successor regulation1 that is in effect on the date of the enactment of this ,act4