,,ii #aad? ,,congress #b;d ,session ,s4 #bhji ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,april #ah1 #bjaf ,mr4 ,portman introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,f9ance ,a ,,bill ,to am5d ! ,int]nal ,rev5ue ,code ( #aihf to pres]ve taxpay]s' rights to adm9i/rative appeal ( defici5cy det]m9ations1 & = o!r purposes4 #a4 ,ensur+ taxpay] "r to appeal 7a7 ,9 g5]al ,subsection 7a7 ( section #fbab ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$-- 7#a7 by /rik+ ,9 g5]al4--,if ! ,secret>y & ins]t+ ,9 g5]al4-- 7#a7 ,au?orization ,if-- 7,a7 ! ,secret>y 1 7#b7 by /rik+ #dd1 he is au?oriz$ & ins]t+ #dd1 & 7,b7 ! requirem5ts ( p>agraph 7#b7 h be5 met ) respect to su* defici5cy1 ! ,secret>y is au?oriz$ 1 & 7#c7 by add+ at ! end ! foll[+ new p>agraph3 7#b7 ,opportunity = adm9i/rative review 9 ! ,(fice ( ,appeals 7,a7 ,9 g5]al ,! requirem5ts ( ?is p>agraph are met ) respect to a defici5cy if1 prior to ! issuance ( ! notice ( defici5cy "u p>agraph 7#a7-- 7i7 ! taxpay] has be5 issu$ a lett] ( propos$ defici5cy t expla9s ! basis = ! det]m9ation ( defici5cy & all[s ! taxpay] an opportunity = adm9i/rative review 9 ! ,int]nal ,rev5ue ,s]vice ,(fice ( ,appeals1 & 7ii7 ei!r-- 7,i7 ! "t provid$ 9 su* lett] = contact+ ! ,(fice ( ,appeals has expir$ & ! taxpay] has n s contact$ su* ,(fice1 or 7,,ii7 ! ,(fice ( ,appeals has issu$ a decision ) respect to su* defici5cy4 7,b7 ,frivol\s tax positions ,! ,secret>y is au?oriz$ to issue regulations limit+ ! application ( subp>agraph 7,a7 9 cases involv+ solely ! failure or refusal to comply ) ! tax laws because ( moral1 religi\s1 political1 con/itutional1 consci5ti\s1 or simil> gr\nds1 or = o!r positions li/$ z frivol\s "u section #fgjb7;c74 7,c7 ,cases designat$ = litigation ,subp>agraph 7,a7 %all n apply 9 ! case ( issues designat$ = litigation 9 accordance ) section #gabd4 4 7b7 ,opportunity = appeal if few] ?an #fj days rema9 on /atute ( limitations ,section #fbab ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new subsection3 7e7 ,opportunity = appeal if few] ?an #fj days rema9 on /atute ( limitations ,9 ! case ( any issues relat+ to a pot5tial defici5cy ) respect to :i* #fj days or few] rema9 9 ! p]iod applicable "u section #feja1 if ! taxpay] agrees to ! ext5sion ( su* p]iod by #ab mon?s1 ! ,secret>y %all issue a lett] ( propos$ defici5cy describ$ 9 subsection 7a77#b77;,a77i7 all[+ ! taxpay] an opportunity = adm9i/rative review ( su* issues 9 ! ,int]nal ,rev5ue ,s]vice ,(fice ( ,appeals be=e a notice ( defici5cy is issu$ "u ?is section4 ,rules simil> to ! rules ( subsection 7a77#b77;,b7 %all apply = purposes ( ?is subsection4 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to notices ( defici5cy issu$ aft] ,april #bj1 #bjaf4 #b4 ,appeals dispute resolution proc$ures ,subsection 7a7 ( section #gabc ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ to read z foll[s3 7a7 ,ref]ral to appeals proc$ures ,! ,secret>y %all prescribe proc$ures by :i* any taxpay] may reque/-- 7#a7 e>ly ref]ral ( #a or m unresolv$ issues f ! exam9ation or collection division to ! ,int]nal ,rev5ue ,s]vice ,(fice ( ,appeals1 or 7#b7 consid]ation by su* ,(fice ( ,appeals ( issues includ$ 9-- 7,a7 a lett] ( propos$ defici5cy describ$ 9 section #fbab7;a77#b77;,a71 or 7,b7 a notice ( defici5cy pursuant to section #fbab1 :e!r or n ! taxpay] has fil$ a petition ) ! ,tax ,c\rt pursuant to section #fbac7;a71 a claim = refund1 or a suit 9 a di/rict c\rt or ! ,unit$ ,/ates ,c\rt ( ,f$]al ,claims ) respect to su* issues4 ,su* regulations may limit su* proc$ures 9 cases involv+ solely ! failure or refusal to comply ) ! tax laws because ( moral1 religi\s1 political1 con/itutional1 consci5ti\s1 or simil> gr\nds1 or = o!r positions li/$ z frivol\s "u section #fgjb7;c74 ,su* proc$ures %all n be available 9 ! case ( issues designat$ = litigation 9 accordance ) section #gabd4 4 #c4 ,re/riction on ,secret>ial au?ority to designate cases = litigation 7a7 ,9 g5]al ,*apt] #gd ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by r$esignat+ section #gabd z section #gabe & by ins]t+ aft] section #gabc ! foll[+ new section3 #gabd4 ,re/riction on ,secret>ial au?ority to designate cases = litigation 7a7 ,9 g5]al ,! ,secret>y may designate issues aris+ f ! exam9ation or collection division = litigation1 & n p]mit ! taxpay] to reque/ consid]ation ( su* issues by ! ,int]nal ,rev5ue ,s]vice ,(fice ( ,appeals "u section #gabc7;a71 only to ! ext5t su* issues relate to li/$ transactions 7z def9$ 9 section #fgjg;,a7c77#b774 7b7 ,settlem5t ,9 (f]+ t]ms "u a settlem5t agreem5t = purposes ( ! resolution ( any issues aris+ f ! exam9ation or collection division1 ! ,secret>y may (f] t]ms t preclude ! taxpay] f reque/+ consid]ation ( su* issues by ! ,(fice ( ,appeals "u section #gabc7;a7 only to ! ext5t su* issues relate to li/$ transactions 7z def9$ 9 section #fgjg;,a7c77#b774 4 7b7 ,cl]ical am5dm5t ,! table ( sections = *apt] #gd ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ ! item relat+ to section #gabd & ins]t+ ! foll[+ new items3 ,sec4 #gabd4 ,re/riction on ,secret>ial au?ority to designate cases = litigation4,sec4 #gabe4 ,cross ref]5ces4 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to ! designation ( issues = litigation1 & (f]s ( settlem5t t]ms1 aft] ,april #bj1 #bjaf4 #d4 ,modification ( au?ority to issue designat$ summons 7a7 ,9 g5]al ,p>agraph 7#a7 ( section #fejc7;j7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ coord9at$ exam9ation program & ins]t+ coord9at$ indu/ry case program4 7b7 ,designat$ summons ,clause 7i7 ( section #fejc7;j77#b77;,a7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ to read z foll[s3 7i7 ! issuance ( su* summons is prec$$ by a review & writt5 approval ( su* issuance by ! ,l>ge ,bus9ess & ,int]national ,division ,commission] & ! ,division ,c\nsel ( ! ,(fice ( ,*ief ,c\nsel 7or _! successors7-- 7,i7 :i* cle>ly e/abli%es t ! taxpay] did n reasonably coop]ate ) reasonable reque/s by ! ,secret>y = witnesses1 docum5ts1 meet+s1 & int]views1 & 7,,ii7 :i* is atta*$ to su* summons1 4 7c7 ,burd5 ( pro( ,subsection 7j7 ( section #fejc ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#d7 ,burd5 ( pro( ,9 any c\rt proce$+ describ$ 9 p>agraph 7#c71 ! ,secret>y %all be> ! burd5 ( prov+ t ! corporation describ$ 9 p>agraph 7#a7 did n reasonably coop]ate ) reasonable reque/s by ! ,secret>y = witnesses1 docum5ts1 meet+s1 & int]views4 4 7d7 ,effective date ,! am5dm5ts made by ?is section %all apply to summonses issu$ aft] ,april #bj1 #bjaf4 #e4 ,limitation on access ( non-,,irs employees to returns & return in=mation acquir$ by summons 7a7 ,9 g5]al ,section #gfjb ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new subsection3 7f7 ,limitation on access ( p]sons o!r ?an ,,irs (fic]s & employees ,! au?ority grant$ "u ?is section may n be delegat$1 directly or indirectly1 to any p]son au?oriz$ to receive returns & return in=mation "u section #fajc7n74 4 7b7 ,effective date 7#a7 ,9 g5]al ,except z provid$ 9 p>agraph 7#b71 ! am5dm5t made by ?is section %all take effect on ! date ( ! enactm5t ( ?is ,act4 7#b7 ,application to contracts 9 effect ,! am5dm5t made by ?is section %all apply to any contract 9 effect "u section #fajc7n7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 pursuant to tempor>y ,treasury ,regulation section #cja4gfjb-a,t propos$ 9 ,int]nal ,rev5ue ,bullet9 #bjad-bh or any simil> or successor regulation1 t is 9 effect on ! date ( ! enactm5t ( ?is ,act4