,,ii ,calendar ,no4 #eed #aadth ,,congress #b;d ,session ,s4 #caef ,report ,no4 #aad-bih ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,july #ab1 #bjaf ,mr4 ,hatch1 from the ,committee on ,finance1 reported the following original bill2 which was read twice and placed on the calendar ,a ,,bill ,to provide enhanced protections for taxpayers from fraud and other illegal activities1 and for other purposes4 #a4 ,short title2 etc 7a7 ,short title ,this ,act may be cited as the ,taxpayer ,protection ,act of #bjaf4 7b7 ,amendment of #aihf ,code ,except as otherwise expressly provided1 whenever in this ,act an amendment or repeal is expressed in terms of an amendment to1 or repeal of1 a section or other provision1 the reference shall be considered to be made to a section or other provision of the ,internal ,revenue ,code of #aihf4 7c7 ,definitions ,in this ,act3 7#a7 ,applicable ,congressional committees ,the term applicable ,congressional committees means the ,committee on ,ways and ,means of the ,house of ,representatives and the ,committee on ,finance of the ,senate4 7#b7 ,comptroller ,general ,the term ,comptroller ,general means the ,comptroller ,general of the ,united ,states4 7#c7 ,secretary ,the term ,secretary means the ,secretary of the ,treasury or the ,secretary's delegate4 7d7 ,table of contents ,the table of contents of this ,act is as follows3 ,sec4 #a4 ,short title2 etc4 ,,title ,i--,protection of ,taxpayer ,rights ,subtitle ,a--,reform of ,assessment and ,collection ,procedures ,sec4 #aja4 ,report on ,,irs authority to compromise tax matters4 ,sec4 #ajb4 ,report on opportunity for hearing by the ,,irs ,office of ,appeals4 ,sec4 #ajc4 ,extending time limit for contesting ,,irs levy4 ,sec4 #ajd4 ,individuals held harmless on improper levy on retirement plans4 ,sec4 #aje4 ,report on ,,irs audit criteria4 ,subtitle ,b--,assistance to ,individual ,taxpayers in ,filing ,returns ,sec4 #aaa4 ,return preparation programs for low-income taxpayers4 ,sec4 #aab4 ,limiting redisclosures and uses of consent-based disclosures of tax return information4 ,sec4 #aac4 ,clarification of equitable relief from joint liability4 ,sec4 #aad4 ,modification of user fee requirements for installment agreements4 ,sec4 #aae4 ,reports on ,future ,state and similar online initiatives4 ,sec4 #aaf4 ,notice from ,,irs regarding closure of ,taxpayer ,assistance ,centers4 ,sec4 #aag4 ,recovery of certain improperly withheld severance payments4 ,subtitle ,c--,whistleblower ,protections ,sec4 #aba4 ,reports concerning whistleblower awards4 ,sec4 #abb4 ,whistleblower reforms4 ,subtitle ,d--,reform of ,laws ,governing ,internal ,revenue ,service ,employees ,sec4 #aca4 ,electronic record retention4 ,sec4 #acb4 ,sense of the ,senate on revision of the ,hatch ,act4 ,sec4 #acc4 ,prohibition on rehiring former ,,irs employees who were involuntarily separated for misconduct4 ,sec4 #acd4 ,authority to remove or transfer senior ,,irs executives who fail in their performance or engage in serious misconduct4 ,sec4 #ace4 ,limit participation of third-party contractors for sworn testimony taken pursuant to a summons from the ,,irs4 ,sec4 #acf4 ,notification of unauthorized inspection or disclosure of returns and return information4 ,subtitle ,e--,exempt ,organizations ,sec4 #ada4 ,mandatory e-filing by exempt organizations4 ,sec4 #adb4 ,repeal of substantiation exception for certain charitable contributions reported by the donee organization4 ,sec4 #adc4 ,prohibit the use of ,,irs funds for political targeting4 ,sec4 #add4 ,notification to exempt organizations prior to revoking exempt status for failing to file information returns4 ,,title ,,ii--,protection of ,taxpayers from ,identity ,theft and ,tax ,fraud ,sec4 #bja4 ,single point of contact for identity theft victims4 ,sec4 #bjb4 ,protecting taxpayers from telephone scams4 ,sec4 #bjc4 ,information on identity theft and tax scams4 ,sec4 #bjd4 ,report on ,federal employee wage and tax withholding reporting to ,state tax agencies4 ,sec4 #bje4 ,notification of suspected identity theft4 ,i ,protection of ,taxpayer ,rights ,a ,reform of ,assessment and ,collection ,procedures #aja4 ,report on ,,irs authority to compromise tax matters ,not later than #ab months after the date of the enactment of this ,act1 the ,comptroller ,general shall submit a report to the applicable ,congressional committees which evaluates-- 7#a7 how the ,internal ,revenue ,service exercises its authority to compromise tax matters under section #gabb of the ,internal ,revenue ,code of #aihf1 including any recommendations for such legislative and administrative actions as the ,comptroller ,general determines appropriate1 and 7#b7 the role of the ,office of the ,chief ,counsel for the ,internal ,revenue ,service in consideration of offers under such section1 including any recommendations regarding whether to amend or eliminate the requirement under subsection 7b7 of such section of a written opinion for cases in which the unpaid amount of tax assessed exceeds #ej1jjj4 #ajb4 ,report on opportunity for hearing by the ,,irs ,office of ,appeals ,not later than #ab months after the date of the enactment of this ,act1 the ,comptroller ,general shall submit a report to the applicable ,congressional committees which evaluates-- 7#a7 the reasoning put forth by the ,internal ,revenue ,service for denying taxpayers an opportunity for administrative review through the ,internal ,revenue ,service ,office of ,appeals1 7#b7 the process used by the ,internal ,revenue ,service for designating a case for litigation1 including the methodology by which the ,internal ,revenue ,service determines-- 7,a7 whether designating a case for litigation is in the interest of sound tax administration1 and 7,b7 whether there is a critical need for enforcement activity with respect to legal issues raised in a case1 7#c7 the result of cases designated for litigation over the preceding #aj years1 including cases in which a settlement was subsequently reached1 7#d7 taxpayer access to the ,internal ,revenue ,service ,office of ,appeals1 including-- 7,a7 a comparison between ,states in which an ,appeals ,officer or a ,settlement ,officer has a permanent presence and ,states in which no such officer has a permanent presence1 and 7,b7 the effect on taxpayers in ,states in which an ,appeals ,officer or a ,settlement ,officer does not have a permanent presence1 and 7#e7 any relevant factors relating to resolution of cases by the ,internal ,revenue ,service ,office of ,appeals1 including the average amount of time for a taxpayer to initially meet with an ,appeals ,officer or a ,settlement ,officer1 the average amount of time required to resolve a case1 geographic and technological constraints1 and taxpayer satisfaction with the appeals process of the ,internal ,revenue ,service4 #ajc4 ,extending time limit for contesting ,,irs levy 7a7 ,extension of ,time for ,return of ,property ,subject to ,levy ,subsection 7b7 of section #fcdc is amended by striking #i months and inserting #b years4 7b7 ,period of ,limitation on ,suits ,subsection 7c7 of section #fecb is amended-- 7#a7 by striking #i months in paragraph 7#a7 and inserting #b years1 and 7#b7 by striking #i-month in paragraph 7#b7 and inserting #b-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 or #fecb7;c71 as applicable1 of the ,internal ,revenue ,code of #aihf 7as in effect before the amendments made by this section7 as of such date4 #ajd4 ,individuals held harmless on improper levy on retirement plans 7a7 ,in ,general ,section #fcdc is amended by adding at the end the following new subsection3 7f7 ,individuals ,held ,harmless on ,wrongful ,levy1 etc4 on ,retirement ,plan 7#a7 ,in general ,if the ,secretary determines that an individual's account or benefit under an eligible retirement plan 7as defined in section #djb7;c77#h77;,b77 has been levied upon in a case to which subsection 7b7 or 7d77#b77;,a7 applies and property or an amount of money is returned to the individual-- 7,a7 the individual may contribute such property or an amount equal to the sum of-- 7i7 the amount of money so returned by the ,secretary1 and 7ii7 interest paid under subsection 7c7 on such amount of money1 into such eligible retirement plan if such contribution is permitted by the plan1 or into an individual retirement plan 7other than an endowment contract7 to which a rollover contribution of a distribution from such eligible retirement plan is permitted1 but only if such contribution is made not later than the due date 7not including extensions7 for filing the return of tax for the taxable year in which such property or amount of money is returned1 and 7,b7 the ,secretary shall1 at the time such property or amount of money is returned1 notify such individual that a contribution described in subparagraph 7,a7 may be made4 7#b7 ,treatment as rollover ,the distribution on account of the levy and any contribution under paragraph 7#a7 with respect to the return of such distribution shall be treated for purposes of this title as if such distribution and contribution were described in section #djb7;c71 #djb;,a7c77#c71 #djc7;a77#d71 #djc7;b77#h71 #djh7;d77#c71 #djh;,a7d77#c71 or #deg7;e77#af71 whichever is applicable2 except that-- 7,a7 the contribution shall be treated as having been made for the taxable year in which the distribution on account of the levy occurred1 and the interest paid under subsection 7c7 shall be treated as earnings within the plan after the contribution and shall not be included in gross income1 and 7,b7 such contribution shall not be taken into account under section #djh7;d77#c77;,b74 7#c7 ,refund1 etc41 of income tax on levy 7,a7 ,in general ,if any amount is includible in gross income for a taxable year by reason of a distribution on account of a levy referred to in paragraph 7#a7 and any portion of such amount is treated as a rollover contribution under paragraph 7#b71 any tax imposed by chapter #a on such portion shall not be assessed1 and if assessed shall be abated1 and if collected shall be credited or refunded as an overpayment made on the due date for filing the return of tax for such taxable year4 7,b7 ,exception ,subparagraph 7,a7 shall not apply to a rollover contribution under this subsection which is made from an eligible retirement plan which is not a ,roth ,,ira or a designated ,roth account 7within the meaning of section #djb;,a7 to a ,roth ,,ira or a designated ,roth account under an eligible retirement plan4 7#d7 ,interest ,notwithstanding subsection 7d71 interest shall be allowed under subsection 7c7 in a case in which the ,secretary makes a determination described in subsection 7d77#b77;,a7 with respect to a levy upon an individual retirement plan4 7#e7 ,treatment of inherited accounts ,for purposes of paragraph 7#a77;,a71 section #djh7;d77#c77;,c7 shall be disregarded in determining whether an individual retirement plan is a plan to which a rollover contribution of a distribution from the plan levied upon is permitted4 4 7b7 ,effective ,date ,the amendment made by this section shall apply to amounts paid under subsections 7b71 7c71 and 7d77#b77;,a7 of section #fcdc of the ,internal ,revenue ,code of #aihf after ,december #ca1 #bjaf4 #aje4 ,report on ,,irs audit criteria ,not later than #b years after the date of the enactment of this ,act1 the ,treasury ,inspector ,general for ,tax ,administration shall submit a report to the applicable ,congressional committees which contains the results of an audit of the criteria employed by the ,internal ,revenue ,service for selecting tax returns for audit1 assessment1 criminal investigation1 or any heightened scrutiny or review1 including whether such criteria has been used to target taxpayers on the basis of political ideology1 race1 religion1 or any other impermissible factor4 ,b ,assistance to ,individual ,taxpayers in ,filing ,returns #aaa4 ,return preparation programs for low-income taxpayers 7a7 ,in general ,chapter #gg is amended by inserting after section #gebf the following new section3 #gebf;,a4 ,return preparation programs for low-income taxpayers 7a7 ,volunteer ,income ,tax ,assistance ,matching ,grant ,program 7#a7 ,establishment of ,program ,the ,secretary1 through the ,internal ,revenue ,service1 shall establish a ,community ,volunteer ,income ,tax ,assistance ,matching ,grant ,program 7hereinafter in this section referred to as the ,,vita grant program74 ,except as otherwise provided in this section1 the ,,vita grant program shall be administered in a manner which is substantially similar to the ,community ,volunteer ,income ,tax ,assistance matching grants demonstration program established under title ,i of division ,d of the ,consolidated ,appropriations ,act1 #bjjh4 7#b7 ,matching grants 7,a7 ,in general ,the ,secretary may1 subject to the availability of appropriated funds1 make available grants under the ,,vita grant program to provide matching funds for the development1 expansion1 or continuation of qualified return preparation programs assisting low-income taxpayers and members of underserved populations4 7,b7 ,application ,in order to be eligible for a grant under this section1 a qualified return preparation program shall submit an application to the ,secretary at such time1 in such manner1 and containing such information as the ,secretary may reasonably require4 7,c7 ,priority ,in awarding grants under this section1 the ,secretary shall give priority to applications-- 7i7 demonstrating assistance to low-income taxpayers1 with emphasis on outreach to and services for such taxpayers1 7ii7 demonstrating taxpayer outreach and educational activities relating to eligibility and availability of income supports available through the ,internal ,revenue ,code of #aihf1 such as the earned income tax credit1 and 7iii7 demonstrating specific outreach and focus on one or more underserved populations4 7,d7 ,duration of grants ,upon application of a qualified return preparation program1 the ,secretary is authorized to award a multi-year grant not to exceed #c years4 7#c7 ,aggregate limitation ,unless otherwise provided by specific appropriation1 the ,secretary shall not allocate more than #cj1jjj1jjj per fiscal year 7exclusive of costs of administering the program7 to carry out the purposes of this section4 7b7 ,use of funds 7#a7 ,in general ,qualified return preparation programs receiving a grant under this section may use the grant for-- 7,a7 ordinary and necessary costs associated with program operation in accordance with ,cost ,principles ,circulars as set forth by the ,office of ,management and ,budget1 including-- 7i7 for wages or salaries of persons coordinating the activities of the program1 7ii7 to develop training materials1 conduct training1 and perform quality reviews of the returns for which assistance has been provided under the program1 and 7iii7 for equipment purchases and vehicle-related expenses associated with remote or rural tax preparation services1 7,b7 outreach and educational activities described in subsection 7a77#b77;,c77ii71 and 7,c7 services related to financial education and capability1 asset development1 and the establishment of savings accounts in connection with tax return preparation4 7#b7 ,use of grants for overhead expenses prohibited ,no grant made under this section may be used for overhead expenses that are not directly related to any qualified return preparation program4 7c7 ,promotion and referral 7#a7 ,promotion ,the ,secretary shall promote the benefits of1 and encourage the use of1 tax preparation through qualified return preparation programs through the use of mass communications1 referrals1 and other means4 7#b7 ,internal revenue service referrals ,the ,secretary may refer taxpayers to qualified return preparation programs receiving funding under this section4 7#c7 ,,vita grantee referral ,qualified return preparation programs receiving a grant under this section are encouraged to refer1 as appropriate1 to local or regional ,low ,income ,taxpayer ,clinics individuals who are eligible to receive services at such clinics4 7d7 ,definitions ,for purposes of this section-- 7#a7 ,qualified return preparation program ,the term qualified return preparation program means any program-- 7,a7 which provides assistance to individuals1 not less than #ij percent of whom are low-income taxpayers1 in preparing and filing ,federal income tax returns1 7,b7 which is administered by a qualified entity1 7,c7 in which all of the volunteers who assist in the preparation of ,federal income tax returns meet the training requirements prescribed by the ,secretary1 and 7,d7 which uses a quality review process which reviews #ajj percent of all returns4 7#b7 ,qualified entity 7,a7 ,in general ,the term qualified entity means any entity which-- 7i7 is an eligible organization 7as described in subparagraph 7,b771 7ii7 is in compliance with ,federal tax filing and payment requirements1 7iii7 is not debarred or suspended from ,federal contracts1 grants1 or cooperative agreements1 and 7iv7 agrees to provide documentation to substantiate any matching funds provided under the ,,vita grant program4 7,b7 ,eligible organization 7i7 ,in general ,subject to clause 7ii71 the term eligible organization means-- 7,i7 an institution of higher education which is described in section #ajb 7other than subsection 7a77#a77;,c7 thereof7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhh71 as in effect on the date of the enactment of this section1 and which has not been disqualified from participating in a program under title ,,iv of such ,act1 7,,ii7 an organization described in section #eja7;c7 of the ,internal ,revenue ,code of #aihf and exempt from tax under section #eja7;a7 of such ,code1 7,,iii7 a local government agency1 including-- 7aa7 a county or municipal government agency1 and 7bb7 an ,indian tribe1 as defined in section #d7ac7 of the ,native ,american ,housing ,assistance and ,self-,determination ,act of #aiif 7#be ,u4,s4,c4 #dajc7ac771 including any tribally designated housing entity 7as defined in section #d7bb7 of such ,act 7#be ,u4,s4,c4 #dajc7bb7771 tribal subsidiary1 subdivision1 or other wholly owned tribal entity1 or 7,,iv7 a local1 ,state1 regional1 or national coalition 7with one lead organization which meets the eligibility requirements of subclause 7,i71 7,,ii71 or 7,,iii7 acting as the applicant organization74 7ii7 ,alternative eligible organization ,if no eligible organization described in clause 7i7 is available to assist the targeted population or community1 the term eligible organization shall include-- 7,i7 a ,state government agency1 and 7,,ii7 a ,cooperative ,extension ,service office4 7#c7 ,low-income taxpayers ,the term low-income taxpayer means a taxpayer who has income for the taxable year which does not exceed an amount equal to the completed phaseout amount under section #cb7;b7 for a married couple filing a joint return with #c or more qualifying children1 as determined in a revenue procedure or other published guidance4 7#d7 ,underserved population ,the term underserved population includes populations of persons with disabilities1 persons with limited ,english proficiency1 ,native ,americans1 individuals living in rural areas1 members of the ,armed ,forces and their spouses1 and the elderly4 4 7b7 ,clerical amendment ,the table of sections for chapter #gg is amended by inserting after the item relating to section #gebf the following new item3 #gebf;,a4 ,return preparation programs for low-income taxpayers4 4 #aab4 ,limiting redisclosures and uses of consent-based disclosures of tax return information 7a7 ,in general ,subsection 7c7 of section #fajc is amended by inserting at the end the following3 ,persons who receive return information under this subsection shall not use the information for any purpose other than the express purpose for which consent was granted and shall not disclose return information to any other person without the express permission of1 or request by1 the taxpayer44 7b7 ,effective date ,the amendment made by this section shall apply to disclosures made after the date of the enactment of this ,act4 #aac4 ,clarification of equitable relief from joint liability 7a7 ,in general ,section #fjae is amended-- 7#a7 in subsection 7e71 by adding at the end the following new paragraph3 7#g7 ,standard and scope of review ,any review of a determination made under this section shall be reviewed de novo by the ,tax ,court and shall be based upon-- 7,a7 the administrative record established at the time of the determination1 and 7,b7 any additional newly discovered or previously unavailable evidence4 1 and 7#b7 by amending subsection 7f7 to read as follows3 7f7 ,equitable relief 7#a7 ,in general ,under procedures prescribed by the ,secretary1 if-- 7,a7 taking into account all the facts and circumstances1 it is inequitable to hold the individual liable for any unpaid tax or any deficiency 7or any portion of either71 and 7,b7 relief is not available to such individual under subsection 7b7 or 7c71 the ,secretary may relieve such individual of such liability4 7#b7 ,limitation ,a request for equitable relief under this subsection may be made with respect to any portion of any liability that-- 7,a7 has not been paid1 provided that such request is made before the expiration of the applicable period of limitation under section #fejb1 or 7,b7 has been paid1 provided that such request is made during the period in which the individual could submit a timely claim for refund or credit of such payment4 4 7b7 ,effective date ,the amendments made by this section shall apply to petitions or requests filed or pending on or after the date of the enactment of this ,act4 #aad4 ,modification of user fee requirements for installment agreements 7a7 ,in general ,section #faei is amended by redesignating subsection 7f7 as subsection 7g7 and by inserting after subsection 7e7 the following new subsection3 7f7 ,installment agreement fees 7#a7 ,limitation on fee amount ,the amount of any fee imposed on an installment agreement under this section may not exceed the amount of such fee as in effect on the date of the enactment of this subsection4 7#b7 ,waiver or reimbursement ,in the case of any taxpayer with an adjusted gross income1 as determined for the most recent year for which such information is available1 that does not exceed #bej percent of the applicable poverty level 7as determined by the ,secretary7-- 7,a7 if the taxpayer has agreed to make payments under the installment agreement by electronic payment through a debit instrument1 no fee shall be imposed on an installment agreement under this section1 and 7,b7 if the taxpayer is unable to make payments under the installment agreement by electronic payment through a debit instrument1 the ,secretary shall1 upon completion of the installment agreement1 pay the taxpayer an amount equal to any such fees imposed4 4 7b7 ,effective date ,the amendments made by this section shall apply to agreements entered into on or after the date which is #fj days after the date of the enactment of this ,act4 #aae4 ,reports on ,future ,state and similar online initiatives 7a7 ,internal ,revenue ,service ,not later than #ab months after the date of the enactment of this ,act1 and annually thereafter1 the ,secretary shall submit a report to the applicable ,congressional committees which provides information on the status of the efforts by the ,internal ,revenue ,service to expand online taxpayer services1 including a detailed assessment of any service which is proposed to be shifted to a self-service option4 7b7 ,comptroller ,general ,not later than #ab months after the date of the enactment of this ,act1 the ,comptroller ,general shall submit a report to the applicable ,congressional committees which-- 7#a7 evaluates the level of phone and in-person services provided by the ,internal ,revenue ,service to taxpayers residing in any rural city1 town1 or unincorporated area which has a population of not more than #ej1jjj inhabitants1 and 7#b7 provides recommendations on measures the ,internal ,revenue ,service could include in the development of its expanded online taxpayer services to protect the interests of taxpayers described in paragraph 7#a74 #aaf4 ,notice from ,,irs regarding closure of ,taxpayer ,assistance ,centers 7a7 ,in general ,not later than #ij days before the date that a proposed closure of a ,taxpayer ,assistance ,center would take effect1 the ,secretary shall submit a report to the applicable ,congressional committees which provides the reasons for the proposed closure and a description of the taxpayer assistance services which will be provided by the ,internal ,revenue ,service after the proposed closure takes effect to taxpayers in any rural city1 town1 or unincorporated area which has a population of not more than #ej1jjj inhabitants and would be affected by the proposed closure4 7b7 ,treatment under ,congressional ,review ,act ,for purposes of applying chapter #h of title #e1 ,united ,states ,code1 any closure of a ,taxpayer ,assistance ,center described in subsection 7a7 shall be treated as a major rule4 #aag4 ,recovery of certain improperly withheld severance payments 7a7 ,restoration of amounts improperly withheld for tax purposes from severance payments to veterans with combat-related injuries 7#a7 ,in general ,not later than one year after the date of the enactment of this ,act1 the ,secretary of ,defense shall-- 7,a7 identify-- 7i7 the severance payments computed under section #abab of title #aj1 ,united ,states ,code1 and paid by the ,secretary of ,defense after ,january #ag1 #aiia-- 7,i7 which were excluded from gross income pursuant to section #ajd7;a77#d7 of the ,internal ,revenue ,code of #aihf1 and 7,,ii7 from which the ,secretary of ,defense withheld amounts for ,federal income tax purposes1 and 7ii7 the individuals to whom such severance payments were made1 and 7,b7 with respect to each person identified under subparagraph 7,a77ii71 provide-- 7i7 notice of-- 7,i7 the amount of severance payments described in subparagraph 7,a77i71 and 7,,ii7 such other information determined to be necessary by the ,secretary to carry out the purposes of this section1 and 7ii7 instructions for filing amended tax returns to recover improperly withheld amounts4 7#b7 ,extension of limitation on time for credit or refund 7,a7 ,period for filing claim ,if a claim for credit or refund under section #feaa7;a7 of the ,internal ,revenue ,code of #aihf relates to a specified overpayment1 the #c-year period of limitation prescribed by such subsection shall not expire before the date which is #a year after the date the notice described in paragraph 7#a77;,b7 is provided4 ,the allowable amount of credit or refund of a specified overpayment shall be determined without regard to section #feaa7;b77#b74 7,b7 ,specified overpayment ,for purposes of subparagraph 7,a71 the term specified overpayment means an overpayment1 but only to the extent attributable to amounts withheld as described in paragraph 7#a77;,a77i74 7b7 ,requirement that ,secretary of ,defense ensure amounts are not withheld for tax purposes from severance payments not considered gross income ,the ,secretary of ,defense shall take such actions as may be necessary to ensure that amounts are not withheld for tax purposes from severance payments made by the ,secretary of ,defense to individuals when such payments are not considered gross income pursuant to section #ajd7;a77#d7 of the ,internal ,revenue ,code of #aihf4 7c7 ,report to ,congress 7#a7 ,in general ,after completing the identification required by subsection 7a77#a7 and not later than #ae months after the date of the enactment of this ,act1 the ,secretary of ,defense shall submit to the appropriate committees of ,congress a report on the actions taken by the ,secretary of ,defense to carry out this section4 7#b7 ,contents ,the report submitted under paragraph 7#a7 shall include the following3 7,a7 ,the number of individuals identified under subsection 7a77#a77;,a77ii74 7,b7 ,the aggregate amounts that the ,secretary of ,defense withheld which are described in subsection 7a77#a77;,a77i77,,ii74 7,c7 ,a description of the actions the ,secretary of ,defense plans to take to carry out subsection 7b74 7#c7 ,appropriate committees of ,congress defined ,in this section1 the term appropriate committees of ,congress means-- 7,a7 the ,committee on ,armed ,services1 the ,committee on ,veterans' ,affairs1 and the ,committee on ,finance of the ,senate1 and 7,b7 the ,committee on ,armed ,services1 the ,committee on ,veterans' ,affairs1 and the ,committee on ,ways and ,means of the ,house of ,representatives4 ,c ,whistleblower ,protections #aba4 ,reports concerning whistleblower awards 7a7 ,comptroller ,general ,not later than #ab months after the date of the enactment of this ,act1 the ,comptroller ,general shall submit a report to the applicable ,congressional committees regarding whether1 and to what extent1 the ,secretary has paid any whistleblower awards for information relating to-- 7#a7 violations under the ,internal ,revenue ,code of #aihf1 or 7#b7 violations of requirements mandated by subchapter ,,ii of chapter #ec of title #ca1 ,united ,states ,code 7commonly known as the ,bank ,secrecy ,act7 relating to the ,report of ,foreign ,bank and ,financial ,accounts4 7b7 ,,tigta ,not later than #ab months after the date of the enactment of this ,act1 the ,treasury ,inspector ,general for ,tax ,administration shall submit a report to the applicable ,congressional committees which evaluates whether1 and to what extent1 the ,secretary has asserted penalties for violations of requirements described in subsection 7a77#b7 in lieu of applicable penalties under the ,internal ,revenue ,code of #aihf4 #abb4 ,whistleblower reforms 7a7 ,modifications to disclosure rules for whistleblowers 7#a7 ,in general ,section #fajc7k7 is amended by adding at the end the following new paragraph3 7#ac7 ,disclosure to whistleblowers 7,a7 ,in general ,the ,secretary may disclose1 to any individual providing information relating to any purpose described in paragraph 7#a7 or 7#b7 of section #gfbc7;a71 return information related to the investigation of any taxpayer with respect to whom the individual has provided such information1 but only to the extent that such disclosure is necessary in obtaining information1 which is not otherwise reasonably available1 with respect to the correct determination of tax liability for tax1 or the amount to be collected with respect to the enforcement of any other provision of this title4 7,b7 ,updates on whistleblower investigations ,the ,secretary shall disclose to an individual providing information relating to any purpose described in paragraph 7#a7 or 7#b7 of section #gfbc7;a7 the following3 7i7 ,not later than #cj days after a case for which the individual has provided information has been referred for an audit or examination1 a notice with respect to such referral4 7ii7 ,not later than #cj days after a taxpayer with respect to whom the individual has provided information has made a payment of tax with respect to tax liability to which such information relates1 a notice with respect to such payment4 7iii7 ,subject to such requirements and conditions as are prescribed by the ,secretary1 upon a written request by such individual-- 7,i7 information on the status and stage of any investigation or action related to such information1 and 7,,ii7 in the case of a determination of the amount of any award under section #gfbc7;b71 the reasons for such determination4 ,clause 7iii7 shall not apply to any information if the ,secretary determines that disclosure of such information would seriously impair ,federal tax administration4 ,information described in clauses 7i71 7ii71 and 7iii7 may be disclosed to a designee of the individual providing such information in accordance with guidance provided by the ,secretary4 4 7#b7 ,conforming amendments 7,a7 ,confidentiality of information ,section #fajc7;a77#c7 is amended by striking subsection 7k77#aj7 and inserting paragraph 7#aj7 or 7#ac7 of subsection 7k74 7,b7 ,penalty for unauthorized disclosure ,section #gbac7;a77#b7 is amended by striking 7k77#aj7 and inserting 7k77#aj7 or 7#ac74 7,c7 ,coordination with authority to disclose for investigative purposes ,section #fajc7k77#f7 is amended by adding at the end the following new sentence3 ,this paragraph shall not apply to any disclosure to an individual providing information relating to any purpose described in paragraph 7#a7 or 7#b7 of section #gfbc7;a7 which is made under paragraph 7#ac77;,a744 7b7 ,protection against retaliation ,section #gfbc is amended by adding at the end the following new subsection3 7c7 ,civil action to protect against retaliation cases 7#a7 ,anti-retaliation whistleblower protection for employees ,no employer or any officer1 employee1 contractor1 subcontractor1 or agent of such employer may discharge1 demote1 suspend1 threaten1 harass1 or in any other manner discriminate against an employee in the terms and conditions of employment 7including through an act in the ordinary course of such employee's duties7 in reprisal for any lawful act done by the employee-- 7,a7 to provide information1 cause information to be provided1 or otherwise assist in an investigation regarding underpayment of tax or any conduct which the employee reasonably believes constitutes a violation of the internal revenue laws or any provision of ,federal law relating to tax fraud1 when the information or assistance is provided to the ,internal ,revenue ,service1 the ,secretary of ,treasury1 the ,treasury ,inspector ,general for ,tax ,administration1 the ,comptroller ,general of the ,united ,states1 the ,department of ,justice1 the ,united ,states ,congress1 a person with supervisory authority over the employee1 or any other person working for the employer who has the authority to investigate1 discover1 or terminate misconduct1 or 7,b7 to testify1 participate in1 or otherwise assist in any administrative or judicial action taken by the ,internal ,revenue ,service relating to an alleged underpayment of tax or any violation of the internal revenue laws or any provision of ,federal law relating to tax fraud4 7#b7 ,enforcement action 7,a7 ,in general ,a person who alleges discharge or other reprisal by any person in violation of paragraph 7#a7 may seek relief under paragraph 7#c7 by-- 7i7 filing a complaint with the ,secretary of ,labor1 or 7ii7 if the ,secretary of ,labor has not issued a final decision within #ahj days of the filing of the complaint and there is no showing that such delay is due to the bad faith of the claimant1 bringing an action at law or equity for de novo review in the appropriate district court of the ,united ,states1 which shall have jurisdiction over such an action without regard to the amount in controversy4 7,b7 ,procedure 7i7 ,in general ,an action under subparagraph 7,a77ii7 shall be governed under the rules and procedures set forth in section #dbaba7;b7 of title #di1 ,united ,states ,code4 7ii7 ,exception ,notification made under section #dbaba7;b77#a7 of title #di1 ,united ,states ,code1 shall be made to the person named in the complaint and to the employer4 7iii7 ,burdens of proof ,an action brought under subparagraph 7,a77ii7 shall be governed by the legal burdens of proof set forth in section #dbaba7;b7 of title #di1 ,united ,states ,code1 except that in applying such section-- 7,i7 behavior described in paragraph 7#a7 shall be substituted for behavior described in paragraphs 7#a7 through 7#d7 of subsection 7a7 each place it appears in paragraph 7#b77;,b7 thereof1 and 7,,ii7 a violation of paragraph 7#a7 shall be substituted for a violation of subsection 7a7 each place it appears4 7iv7 ,statute of limitations ,a complaint under subparagraph 7,a77i7 shall be filed not later than #ahj days after the date on which the violation occurs4 7v7 ,jury trial ,a party to an action brought under subparagraph 7,a77ii7 shall be entitled to trial by jury4 7#c7 ,remedies 7,a7 ,in general ,an employee prevailing in any action under paragraph 7#b77;,a7 shall be entitled to all relief necessary to make the employee whole4 7,b7 ,compensatory damages ,relief for any action under subparagraph 7,a7 shall include-- 7i7 reinstatement with the same seniority status that the employee would have had1 but for the reprisal1 7ii7 the sum of #bjj percent of the amount of back pay and #ajj percent of all lost benefits1 with interest1 and 7iii7 compensation for any special damages sustained as a result of the reprisal1 including litigation costs1 expert witness fees1 and reasonable attorney fees4 7#d7 ,rights retained by employee ,nothing in this section shall be deemed to diminish the rights1 privileges1 or remedies of any employee under any ,federal or ,state law1 or under any collective bargaining agreement4 7#e7 ,nonenforceability of certain provisions waiving rights and remedies or requiring arbitration of disputes 7,a7 ,waiver of rights and remedies ,the rights and remedies provided for in this subsection may not be waived by any agreement1 policy form1 or condition of employment1 including by a predispute arbitration agreement4 7,b7 ,predispute arbitration agreements ,no predispute arbitration agreement shall be valid or enforceable1 if the agreement requires arbitration of a dispute arising under this subsection4 4 7c7 ,effective date 7#a7 ,in general ,the amendments made by subsection 7a7 shall apply to disclosures made after the date of the enactment of this ,act4 7#b7 ,civil protection ,the amendment made by subsection 7b7 shall take effect on the date of the enactment of this ,act4 ,d ,reform of ,laws ,governing ,internal ,revenue ,service ,employees #aca4 ,electronic record retention 7a7 ,retention of records 7#a7 ,in general ,email records of the ,internal ,revenue ,service shall be retained in an appropriate electronic system that supports records management and litigation requirements1 including the capability to identify1 retrieve1 and retain the records1 in accordance with the requirements described in paragraph 7#b74 7#b7 ,requirements 7,a7 ,prior to certification ,the ,commissioner of ,internal ,revenue and the ,chief ,counsel for the ,internal ,revenue ,service shall retain all email records generated on or after the date of the enactment of this ,act and before the date on which the ,treasury ,inspector ,general for ,tax ,administration makes the certification under subsection 7c77#a74 7,b7 ,principal officers and specified employees ,not later than ,december #ca1 #bjaf1 the ,commissioner of ,internal ,revenue and the ,chief ,counsel for the ,internal ,revenue ,service shall maintain email records of all principal officers and specified employees of the ,internal ,revenue ,service for a period of #ae years beginning on the date such record was generated4 7b7 ,transmission of records to the ,national ,archives ,not later than the last day of the #ae-year period described in subsection 7a77#b77;,b71 the ,commissioner of ,internal ,revenue and the ,chief ,counsel for the ,internal ,revenue ,service shall transfer the email records of principal officers and specified employees of the ,internal ,revenue ,service to the ,archivist of the ,united ,states4 7c7 ,compliance 7#a7 ,certification ,on the date that the ,treasury ,inspector ,general for ,tax ,administration determines that the ,internal ,revenue ,service has a program in place that complies with the requirements of subsections 7a77#b77;,b7 and 7b71 the ,treasury ,inspector ,general for ,tax ,administration shall certify to the applicable ,congressional committees that the ,internal ,revenue ,service is in compliance with such requirements4 7#b7 ,reports 7,a7 ,interim report ,not later than ,september #cj1 #bjaf1 the ,treasury ,inspector ,general for ,tax ,administration shall submit a report to the applicable ,congressional committees on the steps being taken by the ,commissioner of ,internal ,revenue and the ,chief ,counsel for the ,internal ,revenue ,service to comply with the requirements of subsections 7a77#b77;,b7 and 7b74 7,b7 ,final report ,not later than ,april #a1 #bjag1 the ,treasury ,inspector ,general for ,tax ,administration shall submit a report to the applicable ,congressional committees describing whether the ,internal ,revenue ,service is in compliance with the requirements of subsections 7a77#b77;,b7 and 7b74 7d7 ,definitions ,for purposes of this section-- 7#a7 ,principal officer ,the term principal officer means1 with respect to the ,internal ,revenue ,service-- 7,a7 any employee whose position is listed under the ,internal ,revenue ,service in the most recent version of the ,united ,states ,government ,manual published by the ,office of the ,federal ,register1 7,b7 any employee who is a senior staff member reporting directly to the ,commissioner of ,internal ,revenue or the ,chief ,counsel for the ,internal ,revenue ,service1 and 7,c7 any associate counsel1 deputy counsel1 or division head in the ,office of the ,chief ,counsel for the ,internal ,revenue ,service4 7#b7 ,specified employee ,the term specified employee means1 with respect to the ,internal ,revenue ,service1 any employee who-- 7,a7 holds a ,senior ,executive ,service position 7as defined in section #cacb of title #e1 ,united ,states ,code7 in the ,internal ,revenue ,service or the ,office of ,chief ,counsel for the ,internal ,revenue ,service1 and 7,b7 is not a principal officer of the ,internal ,revenue ,service4 #acb4 ,sense of the ,senate on revision of the ,hatch ,act ,it is the sense of the ,senate that clause 7i7 of section #gcbc7;b77#b77;,b7 of title #e1 ,united ,states ,code1 should be amended to include any employee of the ,department of the ,treasury who is primarily responsible for matters relating to organizations which are exempt from taxation pursuant to section #eja7;c7 or #ebg of the ,internal ,revenue ,code of #aihf4 #acc4 ,prohibition on rehiring former ,,irs employees who were involuntarily separated for misconduct 7a7 ,in general ,section #ghjd is amended by adding at the end the following new subsection3 7d7 ,prohibition on rehiring employees involuntarily separated ,the ,commissioner may not employ any individual previously employed by the ,commissioner who was removed for misconduct under this subchapter or chapter #dc or chapter #ge of title #e1 ,united ,states ,code1 or whose employment was terminated under section #abjc of the ,internal ,revenue ,service ,restructuring and ,reform ,act of #aiih 7#bf ,u4,s4,c4 #ghjd note74 4 7b7 ,effective date 7#a7 ,in general ,except as provided in paragraph 7#b71 the amendment made by subsection 7a7 shall apply with respect to any employee removed from employment before1 on1 or after the date of the enactment of this ,act4 7#b7 ,exception ,the amendment made by subsection 7a7 shall not apply to any employee who is employed by the ,internal ,revenue ,service as of the date of the enactment of this ,act with respect to any removal for misconduct which occurred before such date4 #acd4 ,authority to remove or transfer senior ,,irs executives who fail in their performance or engage in serious misconduct 7a7 ,in general ,section #abjc of the ,internal ,revenue ,service ,restructuring and ,reform ,act of #aiih 7#bf ,u4,s4,c4 #ghjd note7 is amended by adding at the end the following new subsection3 7f7 ,removal of senior executives based on performance or misconduct 7#a7 ,removal or transfer 7,a7 ,in general ,the ,commissioner of ,internal ,revenue 7referred to in this subsection as the ,commissioner7 may remove an individual employed in a senior executive position at the ,internal ,revenue ,service from the senior executive position if the ,commissioner determines the performance or misconduct of the individual warrants such removal4 ,if the ,commissioner so removes such an individual1 the ,commissioner may-- 7i7 remove the individual from the civil service 7as defined in section #baja of title #e1 ,united ,states ,code72 or 7ii7 in the case of an individual described in subparagraph 7,b71 transfer the individual from the senior executive position to a ,general ,schedule position at any grade of the ,general ,schedule for which the individual is qualified and that the ,commissioner determines is appropriate4 7,b7 ,individuals eligible for transfer ,an individual described in this subparagraph is an individual who-- 7i7 previously occupied a permanent position within the competitive service 7as that term is defined in section #bajb of title #e1 ,united ,states ,code72 7ii7 previously occupied a permanent position within the excepted service 7as that term is defined in section #bajc of title #e1 ,united ,states ,code72 or 7iii7 prior to employment in a senior executive position at the ,internal ,revenue ,service1 did not occupy any position within the ,federal ,government4 7#b7 ,pay of transferred individuals 7,a7 ,in general ,notwithstanding any other provision of law1 including the requirements of section #ceid of title #e1 ,united ,states ,code1 any individual transferred to a ,general ,schedule position under paragraph 7#a77;,a77ii7 shall1 beginning on the date of such transfer1 receive the annual rate of pay applicable to such position4 7,b7 ,paid leave during appeal ,an individual so transferred may not be placed on administrative leave or any other category of paid leave during the period during which an appeal 7if any7 under this section is ongoing1 and may only receive pay if the individual reports for duty4 ,if an individual so transferred does not report for duty1 such individual shall not receive pay or other benefits pursuant to paragraph 7#e77;,e74 7#c7 ,notice to ,congress ,not later than #cj days after removing or transferring an individual from a senior executive position under paragraph 7#a71 the ,commissioner shall submit written notice of such removal or transfer and the reason for such removal or transfer to-- 7,a7 the ,committee on ,finance of the ,senate2 7,b7 the ,committee on ,homeland ,security and ,governmental ,affairs of the ,senate2 7,c7 the ,committee on ,ways and ,means of the ,house of ,representatives2 and 7,d7 the ,committee on ,oversight and ,government ,reform of the ,house of ,representatives4 7#d7 ,procedure 7,a7 ,in general ,the procedures under section #gedc7;b7 of title #e1 ,united ,states ,code1 shall not apply to a removal or transfer under this section4 7,b7 ,appeal to ,merit ,system ,protection ,board 7i7 ,in general ,subject to clause 7ii7 and paragraph 7#e71 any removal or transfer under paragraph 7#a7 may be appealed to the ,merit ,systems ,protection ,board under section #ggja of title #e1 ,united ,states ,code4 7ii7 ,deadline for appeal ,an appeal under clause 7i7 of a removal or transfer may only be made if such appeal is made not later than #g days after the date of such removal or transfer4 7#e7 ,expedited review by administrative law judge 7,a7 ,in general ,upon receipt of an appeal under paragraph 7#d77;,b77i71 the ,merit ,systems ,protection ,board shall refer such appeal to an administrative law judge pursuant to section #ggja7;b77#a7 of title #e1 ,united ,states ,code4 ,the administrative law judge shall expedite any such appeal under such section and1 in any such case1 shall issue a decision not later than #ba days after the date of the appeal4 7,b7 ,finality of decision ,notwithstanding any other provision of law1 including section #ggjc of title #e1 ,united ,states ,code1 the decision of an administrative law judge under subparagraph 7,a7 shall be final and shall not be subject to any further appeal4 7,c7 ,failure to reach decision ,in any case in which the administrative law judge cannot issue a decision in accordance with the #ba-;day requirement under subparagraph 7,a71 the removal or transfer is final4 ,in such a case1 the ,merit ,systems ,protection ,board shall1 within #ad days after the date that such removal or transfer is final1 submit to ,congress and the ,committees described in paragraph 7#c7 a report that explains the reasons why a decision was not issued in accordance with such requirement4 7,d7 ,prohibition on stay of removal or transfer ,the ,merit ,systems ,protection ,board or administrative law judge may not stay any removal or transfer under this subsection4 7,e7 ,period of review ,during the period beginning on the date on which an individual appeals a removal from the civil service under paragraph 7#d7 and ending on the date that the administrative law judge issues a final decision on such appeal1 such individual may not receive any pay1 awards1 bonuses1 incentives1 allowances1 differentials1 student loan repayments1 special payments1 or benefits4 7,f7 ,relevant information to be provided ,to the maximum extent practicable1 the ,commissioner shall provide to the ,merit ,systems ,protection ,board1 and to any administrative law judge to whom an appeal under this section is referred1 such information and assistance as may be necessary to ensure an appeal under this paragraph is expedited4 7#f7 ,relation to other provisions of law 7,a7 ,in general ,the authority provided by this subsection is in addition to1 and shall not be construed to limit or diminish1 the authority provided by-- 7i7 subsections 7a7 and 7c72 and 7ii7 section #ceib or subchapter ,v of chapter #ge of title #e1 ,united ,states ,code4 7,b7 ,removal from ,senior ,executive ,service ,section #ceib7;b77#a7 of title #e1 ,united ,states ,code1 does not apply to an action to remove or transfer an individual under this subsection4 7#g7 ,definitions ,for purposes of this subsection3 7,a7 ,individual ,the term individual means a career appointee 7as that term is defined in section #cacb7;a77#d7 of title #e1 ,united ,states ,code74 7,b7 ,misconduct 7i7 ,in general ,subject to clause 7ii71 the term misconduct includes neglect of duty1 malfeasance1 or failure to accept a directed reassignment or to accompany a position in a transfer of function4 7ii7 ,exception ,the term misconduct shall not include any act or omission described in subsection 7b74 7,c7 ,senior executive position ,the term senior executive position means a ,senior ,executive ,service position 7as such term is defined in section #cacb7;a77#b7 of title #e1 ,united ,states ,code74 4 7b7 ,establishment of expedited review process 7#a7 ,in general ,not later than #fj days after the date of the enactment of this ,act1 the ,merit ,systems ,protection ,board shall establish and put into effect a process to conduct expedited reviews in accordance with subsection 7f7 of section #abjc of the ,internal ,revenue ,service ,restructuring and ,reform ,act of #aiih1 as added by this ,act4 7#b7 ,inapplicability of certain regulations ,section #abja4bb of title #e1 ,code of ,federal ,regulations1 as in effect on the day before the date of the enactment of this ,act1 shall not apply to expedited reviews carried out under such section #abjc7;f74 7#c7 ,waiver ,the ,merit ,systems ,protection ,board may waive any other regulation in order to provide for the expedited review required under such section #abjc7;f74 7#d7 ,review by ,merit ,systems ,protection ,board ,not later than #cj days after the date of the enactment of this ,act1 the ,merit ,systems ,protection ,board shall submit to the committees described in paragraph 7#c7 of such section #abjc7;f7 a report on the actions the ,board plans to take to conduct expedited reviews under such section4 ,such report shall include a description of the resources the ,board determines will be necessary to conduct such reviews and a description of whether any resources will be necessary to conduct such reviews that were not available to the ,board on the day before the date of the enactment of this ,act4 7c7 ,temporary exemption from certain limitation on initiation of removal from senior executive service ,during the #abj-;day period beginning on the date of the enactment of this ,act1 an action to remove an individual from the ,senior ,executive ,service at the ,internal ,revenue ,service pursuant to section #gedc of title #e1 ,united ,states ,code1 may be initiated1 notwithstanding section #ceib7;b7 of such title1 or any other provision of law4 7d7 ,construction ,nothing in this section or section #abjc7;f7 of the ,internal ,revenue ,service ,restructuring and ,reform ,act of #aiih1 as added by this ,act1 shall be construed to apply to an appeal of a removal1 transfer1 or other personnel action that was pending before the date of the enactment of this ,act4 #ace4 ,limit participation of third-party contractors for sworn testimony taken pursuant to a summons from the ,,irs 7a7 ,in general ,section #gfjb 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 on the date of the enactment of this ,act for an activity described in section #fajc7n7 of the ,internal ,revenue ,code of #aihf1 pursuant to temporary ,treasury ,regulation section #cja4gfjb-a,t published in ,internal ,revenue ,bulletin #bjad-bh or any similar or successor regulation4 #acf4 ,notification of unauthorized inspection or disclosure of returns and return information 7a7 ,in general ,subsection 7e7 of section #gdca is amended by adding at the end the following new sentences3 ,the ,secretary shall also notify such taxpayer if the ,internal ,revenue ,service or a ,federal or ,state agency 7upon notice to the ,secretary by such ,federal or ,state agency7 proposes an administrative determination as to disciplinary or adverse action against an employee arising from the employee's unauthorized inspection or disclosure of the taxpayer's return or return information4 ,the notice described in this subsection shall include the date of the unauthorized inspection or disclosure and the rights of the taxpayer under such administrative determination44 7b7 ,effective date ,the amendment made by this section shall apply to determinations proposed after the date which is #ahj days after the date of the enactment of this ,act4 ,e ,exempt ,organizations #ada4 ,mandatory e-filing by exempt organizations 7a7 ,in general ,section #fjcc is amended by redesignating subsection 7n7 as subsection 7o7 and by inserting after subsection 7m7 the following new subsection3 7n7 ,mandatory electronic filing ,any organization required to file a return under this section shall file such return in electronic form4 4 7b7 ,conforming amendment ,paragraph 7#g7 of section #ebg7;j7 is amended by striking if the organization has and all that follows through such calendar year4 7c7 ,inspection of electronically filed annual returns ,subsection 7b7 of section #fajd is amended by adding at the end the following3 ,any annual return required to be filed electronically under section #ebg7;j77#g7 or #fjcc7n7 shall be made available by the ,secretary to the public as soon as practicable in a machine readable format that does not permit alteration or manipulation of such return44 7d7 ,effective date 7#a7 ,in general ,except as provided in paragraph 7#b71 the amendments made by this section shall apply to taxable years beginning after the date of the enactment of this ,act4 7#b7 ,transitional relief 7,a7 ,small organizations 7i7 ,in general ,in the case of any small organization or any other organization for which the ,secretary determines the application of the amendments made by subsections 7a7 and 7b7 would cause undue burden1 the ,secretary may waive application of such amendments to either or both of the organization's first #b taxable years beginning after the date of the enactment of this ,act4 7ii7 ,small organization ,for purposes of clause 7i71 the term small organization means any organization-- 7,i7 the gross receipts of which for the taxable year are less than #bjj1jjj1 and 7,,ii7 the aggregate gross assets of which at the end of the taxable year are less than #ejj1jjj4 7,b7 ,organizations filing form #iij-,t ,in the case of any organization described in section #eaa7;a77#b7 of the ,internal ,revenue ,code of #aihf which is subject to the tax imposed by section #eaa7;a77#a7 of such ,code on its unrelated business taxable income1 or any organization required to file a return under section #fjcc of such ,code and include information under subsection 7e7 thereof1 the ,secretary may waive application of the amendments made by subsections 7a7 and 7b7 to either or both of the organization's first #b taxable years beginning after the date of the enactment of this ,act4 #adb4 ,repeal of substantiation exception for certain charitable contributions reported by the donee organization 7a7 ,in general ,section #agj7;f77#h7 is amended-- 7#a7 by striking subparagraph 7,d71 and 7#b7 by redesignating subparagraph 7,e7 as subparagraph 7,d74 7b7 ,effective date ,the amendments made by this section shall take effect on the date of the enactment of this ,act4 #adc4 ,prohibit the use of ,,irs funds for political targeting ,none of the funds made available under any ,act may be used by the ,internal ,revenue ,service to target citizens of the ,united ,states for exercising any right guaranteed under the ,first ,amendment to the ,constitution of the ,united ,states4 #add4 ,notification to exempt organizations prior to revoking exempt status for failing to file information returns 7a7 ,in general ,section #fjcc7;j7 is amended by redesignating paragraphs 7#b7 and 7#c7 as paragraphs 7#c7 and 7#d71 respectively1 and by inserting after paragraph 7#a7 the following new paragraph3 7#b7 ,requirement of notice 7,a7 ,in general ,not later than #bgj days after the date an organization described in paragraph 7#a7 fails to file the annual return or notice referenced in paragraph 7#a7 for #b consecutive years1 the ,secretary shall notify the organization-- 7i7 that the ,internal ,revenue ,service has no record of such a return or notice from such organization for #b consecutive years1 and 7ii7 about the penalty that will occur under this subsection if the organization fails to file such a return or notice by the date of the next filing deadline4 ,the notification under the preceding sentence shall include information about how to comply with the filing requirements under subsection 7a77#a7 and 7i74 4 7b7 ,reinstatement without application ,paragraph 7#c7 of section #fjcc7;j71 as redesignated under subsection 7a71 is amended-- 7#a7 by striking ,any organization and inserting the following3 7,a7 ,in general ,except as provided in subparagraph 7,b71 any organization 1 and 7#b7 by adding at the end the following new subparagraph3 7,b7 ,retroactive reinstatement without application if actual notice not provided ,if an organization described in paragraph 7#a7-- 7i7 demonstrates to the satisfaction of the ,secretary that the organization did not receive the notice required under paragraph 7#b71 and 7ii7 files an annual return or notice referenced in paragraph 7#a7 for the current year1 then the ,secretary may reinstate the organization's exempt status effective from the date of the revocation under paragraph 7#a7 without the need for an application4 4 7c7 ,effective date ,the amendments made by this section shall apply to notices and returns required to be filed after ,december #ca1 #bjae4 ,,ii ,protection of ,taxpayers from ,identity ,theft and ,tax ,fraud #bja4 ,single point of contact for identity theft victims 7a7 ,in general ,the ,secretary shall establish and implement procedures to ensure that any taxpayer whose return has been delayed or otherwise adversely affected due to identity theft has a single point of contact at the ,internal ,revenue ,service throughout the processing of the taxpayer's case4 ,the single point of contact shall track the taxpayer's case to completion and coordinate with other specialized units to resolve case issues as quickly as possible4 7b7 ,single point of contact 7#a7 ,in general ,for purposes of subsection 7a71 the single point of contact may consist of a team or subset of specially trained employees who-- 7,a7 have the ability to work across functions to resolve the issues involved in the taxpayer's case1 and 7,b7 shall be accountable for handling the case until its resolution4 7#b7 ,team or subset ,the employees included within the team or subset described in paragraph 7#a7 may change as required to meet the needs of the ,internal ,revenue ,service1 provided that procedures have been established to-- 7,a7 ensure continuity of records and case history1 and 7,b7 notify the taxpayer when appropriate4 #bjb4 ,protecting taxpayers from telephone scams ,not later than #ab months after the date of the enactment of this ,act1 the ,treasury ,inspector ,general for ,tax ,administration1 in consultation with the ,chairman of the ,federal ,communications ,commission and the ,chairman of the ,federal ,trade ,commission1 shall submit a report to the applicable ,congressional committees which identifies potential technological solutions to help protect taxpayers from telephone calls from individuals who are falsely claiming to be calling from or on behalf of the ,internal ,revenue ,service1 including identifying communications providers that offer services designed to assist taxpayers in identifying or preventing such calls4 #bjc4 ,information on identity theft and tax scams ,the ,secretary shall provide to any taxpayer who has been placed on hold during a telephone call to any ,internal ,revenue ,service help line the following information3 7#a7 ,information about common tax scams4 7#b7 ,information on where and how to report tax scams4 7#c7 ,additional advice on how taxpayers can protect themselves from identity theft and tax scams4 #bjd4 ,report on ,federal employee wage and tax withholding reporting to ,state tax agencies ,not later than #ab months after the date of the enactment of this ,act1 the ,comptroller ,general shall submit a report to the applicable ,congressional committees which provides an analysis of the process and timeline by which the following entities provide ,federal employee wage and tax withholding information to ,state tax agencies3 7#a7 ,the ,national ,finance ,center of the ,department of ,agriculture4 7#b7 ,the ,defense ,finance and ,accounting ,service of the ,department of ,defense4 7#c7 ,the ,national ,business ,center of the ,department of the ,interior4 7#d7 ,the ,national ,payroll ,branch of the ,general ,services ,administration4 #bje4 ,notification of suspected identity theft 7a7 ,in general ,chapter #gg is amended by adding at the end the following new section3 #gebi4 ,notification of suspected identity theft 7a7 ,in general ,if the ,secretary determines that there has been or may have been an unauthorized use of the identity of any individual1 the ,secretary shall1 without jeopardizing an investigation relating to tax administration-- 7#a7 as soon as practicable1 notify the individual of such determination and provide-- 7,a7 instructions on how to file a report with law enforcement regarding the unauthorized use of the identity of the individual1 7,b7 the identification of any forms necessary for the individual to complete and submit to law enforcement to permit access to personal information of the individual during the investigation1 7,c7 information regarding actions the individual may take in order to protect the individual from harm relating to such unauthorized use1 and 7,d7 an offer of identity protection measures to be provided to the individual by the ,internal ,revenue ,service1 such as the use of an identity protection personal identification number 7as defined in section #faji7;e771 and 7#b7 at the time the information described in paragraph 7#a7 is provided 7or1 if not available at such time1 as soon as practicable thereafter71 issue additional notifications to such individual 7or such individual's designee7 regarding-- 7,a7 whether an investigation has been initiated in regards to such unauthorized use1 7,b7 whether the investigation substantiated an unauthorized use of the identity of the individual1 and 7,c7 whether-- 7i7 any action has been taken against a person relating to such unauthorized use1 or 7ii7 any referral has been made for criminal prosecution of such person and1 to the extent such information is available1 whether such person has been criminally charged by indictment or information4 7b7 ,employment-related identity theft 7#a7 ,in general ,for purposes of this section1 the unauthorized use of the identity of an individual includes the unauthorized use of the identity of the individual to obtain employment4 7#b7 ,determination of employment-related identity theft ,for purposes of this section1 in making a determination as to whether there has been or may have been an unauthorized use of the identity of an individual to obtain employment1 the ,secretary shall review any information-- 7,a7 obtained from a statement described in section #fjea or an information return relating to compensation for services rendered other than as an employee1 or 7,b7 provided to the ,internal ,revenue ,service by the ,social ,security ,administration regarding any statement described in section #fjea1 which indicates that the social security account number provided on such statement or information return does not correspond with the name provided on such statement or information return or the name on the tax return reporting the income which is included on such statement or information return4 4 7b7 ,additional measures 7#a7 ,examination of both paper and electronic statements and returns ,the ,secretary shall examine the statements1 information returns1 and tax returns described in section #gebi7;b77#b7 for any evidence of employment-related identity theft1 regardless of whether such statements or returns are submitted electronically or on paper4 7#b7 ,improvement of effective return processing program with ,social ,security ,administration ,section #bcb of the ,social ,security ,act 7#db ,u4,s4,c4 #dcb7 is amended by inserting after the third sentence the following3 ,for purposes of carrying out the return processing program described in the preceding sentence1 the ,commissioner of ,social ,security shall request1 not less than annually1 such information described in section #gebi7;b77#b7 of the ,internal ,revenue ,code of #aihf as may be necessary to ensure the accuracy of the records maintained by the ,commissioner of ,social ,security related to the amounts of wages paid to1 and the amounts of self-employment income derived by1 individuals44 7#c7 ,underreporting of income ,the ,secretary shall establish procedures to ensure that income reported in connection with the unauthorized use of a taxpayer's identity is not taken into account in determining any penalty for underreporting of income by the victim of identity theft4 7c7 ,clerical amendment ,the table of sections for chapter #gg is amended by adding at the end the following new item3 ,sec4 #gebi4 ,notification of suspected identity theft4 4 7d7 ,effective date ,the amendments made by this section shall apply to determinations made after the date of the enactment of this ,act4 ,july #ab1 #bjaf,read twice and placed on the calendar