,i #aaeth ,,congress #ast ,session ,h4 ,r4 #ccdj ,,in ,,the ,,house ,,of ,,representatives ,july #bj1 #bjag,mr4 ,doggett 7for himself1 ,ms4 ,judy ,chu of ,california1 ,ms4 ,del,bene1 ,mr4 ,higgins of ,new ,york1 ,mr4 ,levin1 ,ms4 ,sewell of ,alabama1 and ,mr4 ,thompson of ,california7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means1 and in addition to the ,committee on ,financial ,services1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to provide taxpayer protection and assistance1 and for other purposes4 #a4 ,short title2 etc 7a7 ,short title ,this ,act may be cited as the ,strengthening ,taxpayer ,rights ,act of #bjag4 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 #aihf1 as amended4 7c7 ,table of contents ,the table of contents of this ,act is as follows3 ,sec4 #a4 ,short title2 etc4 ,title ,i--,preparation of ,tax ,returns ,sec4 #aja4 ,preparer penalties with respect to preparation of returns and other submissions4 ,sec4 #ajb4 ,limit redisclosures and uses of consent-based disclosures of tax return information4 ,title ,,ii--,improving ,,irs ,procedures ,sec4 #bja4 ,modification of requirements relating to tax lien information contained in consumer credit reports4 ,sec4 #bjb4 ,de novo tax court review of innocent spouse relief determinations4 ,sec4 #bjc4 ,removal of nonpayment period from list of triggering events for returns relating to cancellation of indebtedness4 ,sec4 #bjd4 ,special rules for levies that attach to a fixed and determinable right4 ,i ,preparation of ,tax ,returns #aja4 ,preparer penalties with respect to preparation of returns and other submissions 7a7 ,inclusion of other submissions in penalty provisions 7#a7 ,understatement of taxpayer's liability by tax return preparer 7,a7 ,in general ,section #ffid is amended by striking return or claim of refund each place it appears and inserting return1 claim of refund1 or other submission to the ,secretary4 7,b7 ,conforming amendments ,section #ffid1 as amended by paragraph 7#a71 is amended by striking return or claim each place it appears and inserting return1 claim1 or other submission to the ,secretary4 7#b7 ,increase in penalty in case of gross misconduct ,subsection 7b7 of section #ffid is amended by adding at the end the following new paragraph3 7#d7 ,increase in penalty in case of gross misconduct ,in the case of an understatement to which this section applies that is attributable to the tax return preparer's making a false or fraudulent return or claim for refund without the taxpayer's knowledge1 subsection 7a7 shall be applied by substituting #ajj percent of the amount of the understatement for #ej percent of the amount derived 7or to be derived7 by the tax return preparer with respect to the return or claim4 ,this penalty shall be in addition to any other penalties provided by law4 4 7#c7 ,other assessable penalties 7,a7 ,in general ,section #ffie is amended by striking return or claim for refund each place it appears and inserting return1 claim for refund1 or other submission4 7,b7 ,conforming amendments ,section #ffie1 as amended by paragraph 7#a71 is amended by striking return or claim each place it appears and inserting return1 claim1 or other submission4 7b7 ,increase in certain other assessable penalty amounts 7#a7 ,in general ,subsections 7a71 7b71 and 7c7 of section #ffie are each amended by striking #ej and inserting #a1jjj4 7#b7 ,removal of annual limitation ,subsections 7a71 7b71 and 7c7 of section #ffie are each amended by striking the last sentence thereof4 7c7 ,review by the ,treasury ,inspector ,general for ,tax ,administration ,subparagraph 7,a7 of section #ghjc7;d77#b7 is amended by striking and at the end of clause 7iii71 by striking the period at the end of clause 7iv7 and inserting 1 and1 and by adding at the end the following new clause3 7v7 a summary of the penalties assessed and collected during the reporting period under sections #ffid and #ffie and under the regulations promulgated under section #ccj of title #ca1 ,united ,states ,code1 and a review of the procedures by which violations are identified and penalties are assessed under those sections1 4 7d7 ,additional certification on documents other than returns 7#a7 ,identifying number required for all submissions to the ,,irs by tax return preparers ,the first sentence of paragraph 7#d7 of section #faji7;a7 is amended by striking return or claim for refund and inserting return1 claim for refund1 statement1 or other document4 7#b7 ,effective date ,the amendment made by paragraph 7#a7 shall apply to any return1 claim for refund1 or submission to the ,secretary that is filed after the date of the enactment of this ,act4 7e7 ,coordination with section #fjfj7;a7 ,the ,secretary of the ,treasury shall coordinate the requirements under the regulations promulgated under sections #ccj and #ccj;,a of title #ca1 ,united ,states ,code1 with the return requirements of section #fjfj of the ,internal ,revenue ,code of #aihf4 7f7 ,effective date ,the regulations required by this section shall be prescribed not later than one year after the date of the enactment of this ,act4 #ajb4 ,limit redisclosures and uses of consent-based disclosures of tax return information 7a7 ,in general ,subsection 7c7 of section #fajc is amended by striking ,however1 return and inserting the following3 ,persons designated by the taxpayer to receive return information 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 taxpayer4 ,return4 7b7 ,effective date ,the amendment made by this section shall apply to disclosures after the date of the enactment of this ,act4 ,,ii ,improving ,,irs ,procedures #bja4 ,modification of requirements relating to tax lien information contained in consumer credit reports 7a7 ,in general ,paragraph 7#c7 of section #fje7;a7 of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;c7a77#c77 is amended to read as follows3 7#c7 ,tax liens ,the following tax liens3 7,a7 ,any tax lien released pursuant to section #fcbe7;a7 of the ,internal ,revenue ,code of #aihf not more than #b years after the date that the notice of such lien was filed4 7,b7 ,any tax lien released pursuant to section #fcbe7;a7 of such ,code-- 7i7 more than #b years after the date that the notice of such lien was filed1 and 7ii7 more than #b years before the report4 7,c7 ,any tax lien if-- 7i7 the notice of such lien was not refiled during the required refiling period 7as defined in section #fcbc7;g77#c7 of such ,code71 and 7ii7 such period ends more than #f years before the report4 7,d7 ,any tax lien the notice of which is withdrawn pursuant to section #fcbc7;j77#a7 of such ,code4 7,e7 ,any tax lien released pursuant to section #fcbf7;b7 of such ,code if the notice of such lien was erroneously filed4 4 7b7 ,effective date ,the amendment made by this section shall take effect on the date of the enactment of this ,act4 #bjb4 ,de novo tax court review of innocent spouse relief determinations 7a7 ,in general ,section #fjae is amended-- 7#a7 in subsection 7e71 by adding at the end the following new paragraph3 7#f7 ,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 2 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 and after the date of the enactment of this ,act4 #bjc4 ,removal of nonpayment period from list of triggering events for returns relating to cancellation of indebtedness 7a7 ,in general ,subsection 7c7 of section #fjej,p is amended by adding at the end the following new paragraph3 7#d7 ,determining date of discharge ,whether an entity has discharged the indebtedness of any person shall not be determined based solely on the passage of a specified period of time during which the entity has not received payment on such indebtedness4 4 7b7 ,effective date ,the amendments made by this section shall apply to discharges of indebtedness after the date of the enactment of this ,act4 #bjd4 ,special rules for levies that attach to a fixed and determinable right 7a7 ,in general ,section #fcca is amended by redesignating subsection 7l7 as subsection 7m7 and by inserting after subsection 7k7 the following new subsection3 7l7 ,limitation on levy after expiration of collection period 7#a7 ,penalties and interest ,in the case of a levy that attaches to a fixed and determinable right to payments or other property1 penalties1 additions to tax1 and interest shall not accrue after the expiration of the period of limitations provided in section #fejb4 7#b7 ,retirement and disability payments ,in the case of a levy on benefits under title ,,ii of the ,social ,security ,act1 benefits under a plan on account of a disability1 or retirement benefits or amounts held in a retirement plan1 such levy is not enforceable with respect to such benefits or amounts after the expiration of the period of limitations provided in section #fejb unless the taxpayer has committed a flagrant act 7as defined in section #fccd7;f77#b774 4 7b7 ,effective date ,the amendments made by this section shall apply to levies served after the date of the enactment of this ,act4