,,ib ,union ,calendar ,no4 #dhi #aaeth ,,congress #b;d ,session ,h4 ,r4 #edde ,report ,no4 #aae-fch ,,in ,,the ,,house ,,of ,,representatives ,april #aj1 #bjah ,mr4 ,bishop of ,michigan 7for himself and ,ms4 ,del,bene7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,april #ac1 #bjah;,additional sponsors3 ,mr4 ,sessions1 ,mr4 ,renacci1 ,mr4 ,curbelo of ,florida1 ,mr4 ,marchant1 and ,mr4 ,lewis of ,georgia ,april #ac1 #bjah ,reported with an amendment1 committed to the ,committee of the ,whole ,house on the ,state of the ,union1 and ordered to be printed ,strike out all after the enacting clause and insert the part printed in italic ,for text of introduced bill1 see copy of bill as introduced on ,april #aj1 #bjah ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to improve cybersecurity and taxpayer identity protection1 and modernize the information technology of the ,internal ,revenue ,service1 and for other purposes4 #a4 ,short title2 etc 7a7 ,short title ,this ,act may be cited as the #bast ,century ,,irs ,act4 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 ,table of contents ,the table of contents of this ,act is as follows3 ,sec4 #a4 ,short title2 etc4 ,title ,i--,cybersecurity and identity protection ,sec4 #aja4 ,public-private partnership to address identity theft refund fraud4 ,sec4 #ajb4 ,recommendations of ,electronic ,tax ,administration ,advisory ,committee regarding identity theft refund fraud4 ,sec4 #ajc4 ,information sharing and analysis center4 ,sec4 #ajd4 ,compliance by contractors with confidentiality safeguards4 ,sec4 #aje4 ,report on electronic payments4 ,title ,,ii--,development of information technology ,sec4 #bja4 ,management of ,internal ,revenue ,service information technology4 ,sec4 #bjb4 ,development of online accounts and portals4 ,sec4 #bjc4 ,internet platform for ,form #ajii filings4 ,title ,,iii--,modernization of consent-based income verification system ,sec4 #cja4 ,disclosure of taxpayer information for third-party income verification4 ,sec4 #cjb4 ,limit redisclosures and uses of consent-based disclosures of tax return information4 ,title ,,iv--,expanded use of electronic systems ,sec4 #dja4 ,electronic filing of returns4 ,sec4 #djb4 ,uniform standards for the use of electronic signatures for disclosure authorizations to1 and other authorizations of1 practitioners4 ,sec4 #djc4 ,payment of taxes by debit and credit cards4 ,i ,cybersecurity and identity protection #aja4 ,public-private partnership to address identity theft refund fraud ,the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall work collaboratively with the public and private sectors to protect taxpayers from identity theft refund fraud4 #ajb4 ,recommendations of ,electronic ,tax ,administration ,advisory ,committee regarding identity theft refund fraud ,the ,secretary of the ,treasury shall ensure that the advisory group convened by the ,secretary pursuant to section #bjja7;b77#b7 of the ,internal ,revenue ,service ,restructuring and ,reform ,act of #aiih 7commonly known as the ,electronic ,tax ,administration ,advisory ,committee7 studies 7including by providing organized public forums7 and makes recommendations to the ,secretary regarding methods to prevent identity theft and refund fraud4 #ajc4 ,information sharing and analysis center 7a7 ,in general ,the ,secretary of the ,treasury 7or the ,secretary's delegate7 may participate in an information sharing and analysis center to centralize1 standardize1 and enhance data compilation and analysis to facilitate sharing actionable data and information with respect to identity theft tax refund fraud4 7b7 ,development of performance metrics ,the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall develop metrics for measuring the success of such center in detecting and preventing identity theft tax refund fraud4 7c7 ,disclosure 7#a7 ,in general ,section #fajc7k7 is amended by adding at the end the following new paragraph3 7#ac7 ,disclosure of return information for purposes of cybersecurity and the prevention of identity theft tax refund fraud 7,a7 ,in general ,under such procedures and subject to such conditions as the ,secretary may prescribe1 the ,secretary may disclose specified return information to specified ,,isac participants to the extent that the ,secretary determines such disclosure is in furtherance of effective ,federal tax administration relating to the detection or prevention of identity theft tax refund fraud1 validation of taxpayer identity1 authentication of taxpayer returns1 or detection or prevention of cybersecurity threats4 7,b7 ,specified ,,isac participants ,for purposes of this paragraph-- 7i7 ,in general ,the term specified ,,isac participant means-- 7,i7 any person designated by the ,secretary as having primary responsibility for a function performed with respect to the information sharing and analysis center described in section #djc7;a7 of the #bast ,century ,,irs ,act1 and 7,,ii7 any person subject to the requirements of section #gbaf and which is a participant in such information sharing and analysis center4 7ii7 ,information sharing agreement ,such term shall not include any person unless such person has entered into a written agreement with the ,secretary setting forth the terms and conditions for the disclosure of information to such person under this paragraph1 including requirements regarding the protection and safeguarding of such information by such person4 7,c7 ,specified return information ,for purposes of this paragraph1 the term specified return information means-- 7i7 in the case of a return which is in connection with a case of potential identity theft refund fraud-- 7,i7 in the case of such return filed electronically1 the internet protocol address1 device identification1 email domain name1 speed of completion1 method of authentication1 refund method1 and such other return information related to the electronic filing characteristics of such return as the ,secretary may identify for purposes of this subclause1 and 7,,ii7 in the case of such return prepared by a tax return preparer1 identifying information with respect to such tax return preparer1 including the preparer taxpayer identification number and electronic filer identification number of such preparer1 7ii7 in the case of a return which is in connection with a case of a identity theft refund fraud which has been confirmed by the ,secretary 7pursuant to such procedures as the ,secretary may provide71 the information referred to in subclauses 7,i7 and 7,,ii7 of clause 7i71 the name and taxpayer identification number of the taxpayer as it appears on the return1 and any bank account and routing information provided for making a refund in connection with such return1 and 7iii7 in the case of any cybersecurity threat to the ,internal ,revenue ,service1 information similar to the information described in subclauses 7,i7 and 7,,ii7 of clause 7i7 with respect to such threat4 7,d7 ,restriction on use of disclosed information 7i7 ,designated third parties ,any return information received by a person described in subparagraph 7,b77i77,i7 shall be used only for the purposes of and to the extent necessary in-- 7,i7 performing the function such person is designated to perform under such subparagraph1 7,,ii7 facilitating disclosures authorized under subparagraph 7,a7 to persons described in subparagraph 7,b77i77,,ii71 and 7,,iii7 facilitating disclosures authorized under subsection 7d7 to participants in such information sharing and analysis center4 7ii7 ,return preparers ,any return information received by a person described in subparagraph 7,b77i77,,ii7 shall be treated for purposes of section #gbaf as information furnished to such person for1 or in connection with1 the preparation of a return of the tax imposed under chapter #a4 7,e7 ,data protection and safeguards ,return information disclosed under this paragraph shall be subject to such protections and safeguards as the ,secretary may require in regulations or other guidance or in the written agreement referred to in subparagraph 7,b77ii74 ,such written agreement shall include a requirement that any unauthorized access to information disclosed under this paragraph1 and any breach of any system in which such information is held1 be reported to the ,treasury ,inspector ,general for ,tax ,administration4 4 7#b7 ,application of civil and criminal penalties 7,a7 ,section #fajc7;a77#c7 is amended by striking subsection 7k77#aj7 and inserting paragraph 7#aj7 or 7#ac7 of subsection 7k74 7,b7 ,section #gbac7;a77#b7 is amended by inserting or 7#ac7 after 7k77#aj74 #ajd4 ,compliance by contractors with confidentiality safeguards 7a7 ,in ,general ,section #fajc7p7 is amended by adding at the end the following new paragraph3 7#i7 ,disclosure to contractors and other agents ,notwithstanding any other provision of this section1 no return or return information shall be disclosed to any contractor or other agent of a ,federal1 ,state1 or local agency unless such agency1 to the satisfaction of the ,secretary-- 7,a7 has requirements in effect which require each such contractor or other agent which would have access to returns or return information to provide safeguards 7within the meaning of paragraph 7#d77 to protect the confidentiality of such returns or return information1 7,b7 agrees to conduct an on-site review every #c years 7or a mid-point review in the case of contracts or agreements of less than #c years in duration7 of each contractor or other agent to determine compliance with such requirements1 7,c7 submits the findings of the most recent review conducted under subparagraph 7,b7 to the ,secretary as part of the report required by paragraph 7#d77;,e71 and 7,d7 certifies to the ,secretary for the most recent annual period that such contractor or other agent is in compliance with all such requirements4 ,the certification required by subparagraph 7,d7 shall include the name and address of each contractor and other agent1 a description of the contract or agreement with such contractor or other agent1 and the duration of such contract or agreement4 ,the requirements of this paragraph shall not apply to disclosures pursuant to subsection 7n7 for purposes of ,federal tax administration4 4 7b7 ,conforming ,amendment ,section #fajc7p77#h77;,b7 is amended by inserting or paragraph 7#i7 after subparagraph 7,a74 7c7 ,effective ,date ,the amendments made by this section shall apply to disclosures made after ,december #ca1 #bjbb4 #aje4 ,report on electronic payments ,not later than #b years after the date of the enactment of this ,act1 the ,secretary 7or the ,secretary's delegate71 in coordination with the ,bureau of ,fiscal ,service and the ,internal ,revenue ,service1 and in consultation with private sector financial institutions1 shall submit a written report to ,congress describing how the government can utilize new payment platforms to increase the number of tax refunds paid by electronic funds transfer4 ,such report shall weigh the interests of reducing identity theft tax refund fraud1 reducing the ,federal ,government's costs in delivering tax refunds1 the costs and any associated fees charged to taxpayers 7including monthly and point-of-service fees7 to access their tax refunds1 the impact on individuals who do not have access to financial accounts or institutions1 and ensuring payments are made to accounts at a financial institution that complies with section #ba of the ,federal ,deposit ,insurance ,act1 chapter #b of title ,i of ,public ,law #ia-ejh1 and subchapter ,,ii of chapter #ec of title #ca1 ,united ,states ,code 7commonly referred to collectively as the ,bank ,secrecy ,act7 and the ,,usa ,,patriot ,act4 ,such report shall include any legislative recommendations necessary to accomplish these goals4 ,,ii ,development of information technology #bja4 ,management of ,internal ,revenue ,service information technology 7a7 ,duties and responsibilities of ,internal ,revenue ,service ,chief ,information ,officer ,section #ghjc is amended by adding at the end the following new subsection3 7f7 ,internal ,revenue ,service ,chief ,information ,officer 7#a7 ,in general ,there shall be in the ,internal ,revenue ,service an ,internal ,revenue ,service ,chief ,information ,officer 7hereafter referred to in this subsection as the ,,irs ,,cio7 who shall be appointed by the ,administrator of the ,internal ,revenue ,service4 7#b7 ,centralized responsibility for ,internal ,revenue ,service information technology ,the ,administrator of the ,internal ,revenue ,service 7and the ,secretary7 shall act through the ,,irs ,,cio with respect to all development1 implementation1 and maintenance of information technology for the ,internal ,revenue ,service4 ,any reference in this subsection to the ,,irs ,,cio which directs the ,,irs ,,cio to take any action1 or to assume any responsibility1 shall be treated as a reference to the ,administrator of the ,internal ,revenue ,service acting through the ,,irs ,,cio4 7#c7 ,general duties and responsibilities ,the ,,irs ,,cio shall-- 7,a7 be responsible for the development1 implementation1 and maintenance of information technology for the ,internal ,revenue ,service1 7,b7 ensure that the information technology of the ,internal ,revenue ,service is secure and integrated1 7,c7 maintain operational control of all information technology for the ,internal ,revenue ,service1 7,d7 be the principal advocate for the information technology needs of the ,internal ,revenue ,service1 and 7,e7 consult with the ,chief ,procurement ,officer of the ,internal ,revenue ,service to ensure that the information technology acquired for the ,internal ,revenue ,service is consistent with-- 7i7 the goals and requirements specified in subparagraphs 7,a7 through 7,d71 and 7ii7 the strategic plan developed under paragraph 7#d74 7#d7 ,strategic plan 7,a7 ,in general ,the ,,irs ,,cio shall develop and implement a multiyear strategic plan for the information technology needs of the ,internal ,revenue ,service4 ,such plan shall-- 7i7 include performance measurements of such technology and of the implementation of such plan1 7ii7 include a plan for an integrated enterprise architecture of the information technology of the ,internal ,revenue ,service1 7iii7 include and take into account the resources needed to accomplish such plan1 7iv7 take into account planned major acquisitions of information technology by the ,internal ,revenue ,service1 including ,customer ,account ,data ,engine #b and the ,enterprise ,case ,management ,system1 and 7v7 align with the needs and strategic plan of the ,internal ,revenue ,service4 7,b7 ,plan updates ,the ,,irs ,,cio shall1 not less frequently than annually1 review and update the strategic plan under subparagraph 7,a7 7including the plan for an integrated enterprise architecture described in subparagraph 7,a77ii77 to take into account the development of new information technology and the needs of the ,internal ,revenue ,service4 7#e7 ,scope of authority 7,a7 ,information technology ,for purposes of this subsection1 the term information technology has the meaning given such term by section #aaaja of title #dj1 ,united ,states ,code4 7,b7 ,internal ,revenue ,service ,any reference in this subsection to the ,internal ,revenue ,service includes a reference to all components of the ,internal ,revenue ,service1 including-- 7i7 the ,office of the ,taxpayer ,advocate1 7ii7 the ,criminal ,investigation ,division of the ,internal ,revenue ,service1 and 7iii7 except as otherwise provided by the ,secretary with respect to information technology related to matters described in subsection 7b77#c77;,b71 the ,office of the ,chief ,counsel4 4 7b7 ,independent verification and validation of the ,customer ,account ,data ,engine #b and ,enterprise ,case ,management ,system 7#a7 ,in general ,the ,administrator of the ,internal ,revenue ,service shall enter into a contract with an independent reviewer to verify and validate the implementation plans 7including the performance milestones and cost estimates included in such plans7 developed for the ,customer ,account ,data ,engine #b and the ,enterprise ,case ,management ,system4 7#b7 ,deadline for completion ,such contract shall require that such verification and validation be completed not later than the date which is #a year after the date of the enactment of this ,act4 7#c7 ,application to phases of ,,cade #b 7,a7 ,in general ,paragraphs 7#a7 and 7#b7 shall not apply to phase #a of the ,customer ,account ,data ,engine #b and shall apply separately to each other phase4 7,b7 ,deadline for completing plans ,not later than #a year after the date of the enactment of this ,act1 the ,administrator of the ,internal ,revenue ,service shall complete the development of plans for all phases of the ,customer ,account ,data ,engine #b4 7,c7 ,deadline for completion of verification and validation of plans ,in the case of any phase after phase #b of the ,customer ,account ,data ,engine #b1 paragraph 7#b7 shall be applied by substituting the date on which the plan for such phase was completed for the date of the enactment of this ,act4 7c7 ,coordination of ,,irs ,,cio and ,chief ,procurement ,officer of the ,internal ,revenue ,service 7#a7 ,in general ,the ,chief ,procurement ,officer of the ,internal ,revenue ,service shall-- 7,a7 identify all significant ,,irs information technology acquisitions and provide written notification to the ,internal ,revenue ,service ,chief ,information ,officer 7hereafter referred to in this subsection as the ,,irs ,,cio7 of each such acquisition in advance of such acquisition1 and 7,b7 regularly consult with the ,,irs ,,cio regarding acquisitions of information technology for the ,internal ,revenue ,service1 including meeting with the ,,irs ,,cio regarding such acquisitions upon request4 7#b7 ,significant ,,irs information technology acquisitions ,for purposes of this subsection1 the term significant ,,irs information technology acquisitions means-- 7,a7 any acquisition of information technology for the ,internal ,revenue ,service in excess of #a1jjj1jjj1 and 7,b7 such other acquisitions of information technology for the ,internal ,revenue ,service 7or categories of such acquisitions7 as the ,,irs ,,cio1 in consultation with the ,chief ,procurement ,officer of the ,internal ,revenue ,service1 may identify4 7#c7 ,scope ,terms used in this subsection which are also used in section #ghjc7;f7 of the ,internal ,revenue ,code of #aihf 7as amended by subsection 7a77 shall have the same meaning as when used in such section4 #bjb4 ,development of online accounts and portals 7a7 ,in general ,the ,secretary of the ,treasury or the ,secretary's delegate 7hereafter referred to in this section as the ,secretary7 shall-- 7#a7 develop secure individualized online accounts to provide services to taxpayers and their designated return preparers1 including obtaining taxpayer information1 making payment of taxes1 sharing documentation1 and 7to the extent feasible7 addressing and correcting issues1 and 7#b7 develop a process for the acceptance of tax forms1 and supporting documentation1 in digital or other electronic format4 7b7 ,electronic services treated as supplemental2 application of security standards ,the ,secretary shall ensure that the processes described in subsection 7a7-- 7#a7 are a supplement to1 and not a replacement for1 other services provided by the ,internal ,revenue ,service to taxpayers1 including face-to-face taxpayer assistance and services provided by phone1 and 7#b7 comply with applicable security standards and guidelines4 7c7 ,process for developing online accounts 7#a7 ,development of plan ,not later than #a year after the date of the enactment of this ,act1 the ,secretary shall submit to ,congress a written report describing the ,secretary's plan for developing the secure individualized online accounts described in subsection 7a77#a74 ,such plan shall address the feasibility of taxpayers addressing and correcting issues through such accounts and whether access to such accounts should be restricted and in what manner4 7#b7 ,deadline ,the ,secretary shall make every reasonable effort to make the secure individualized online accounts described in subsection 7a77#a7 available to taxpayers by ,december #ca1 #bjbc4 #bjc4 ,internet platform for ,form #ajii filings 7a7 ,in general ,not later than ,january #a1 #bjbc1 the ,secretary of the ,treasury or the ,secretary's delegate 7hereafter referred to in this section as the ,secretary7 shall make available an ,internet website or other electronic media1 with a user interface and functionality similar to the ,business ,services ,online ,suite of ,services provided by the ,social ,security ,administration1 that will provide access to resources and guidance provided by the ,internal ,revenue ,service and will allow persons to-- 7#a7 prepare and file ,forms #ajii1 7#b7 prepare ,forms #ajii for distribution to recipients other than the ,internal ,revenue ,service1 and 7#c7 maintain a record of completed and submitted ,forms #ajii4 7b7 ,electronic services treated as supplemental2 application of security standards ,the ,secretary shall ensure that the services described in subsection 7a7-- 7#a7 are a supplement to1 and not a replacement for1 other services provided by the ,internal ,revenue ,service to taxpayers1 and 7#b7 comply with applicable security standards and guidelines4 ,,iii ,modernization of consent-based income verification system #cja4 ,disclosure of taxpayer information for third-party income verification 7a7 ,in general ,not later than #a year after the close of the #b-year period described in subsection 7d77#a71 the ,secretary of the ,treasury or the ,secretary's delegate 7hereafter referred to in this section as the ,secretary7 shall implement a program to ensure that any qualified disclosure-- 7#a7 is fully automated and accomplished through the ,internet1 and 7#b7 is accomplished in as close to real-time as is practicable4 7b7 ,qualified disclosure ,for purposes of this section1 the term qualified disclosure means a disclosure under section #fajc7;c7 of the ,internal ,revenue ,code of #aihf of returns or return information by the ,secretary to a person seeking to verify the income or creditworthiness of a taxpayer who is a borrower in the process of a loan application4 7c7 ,application of security standards ,the ,secretary shall ensure that the program described in subsection 7a7 complies with applicable security standards and guidelines4 7d7 ,user fee 7#a7 ,in general ,during the #b-year period beginning on the first day of the #fth calendar month beginning after the date of the enactment of this ,act1 the ,secretary shall assess and collect a fee for qualified disclosures 7in addition to any other fee assessed and collected for such disclosures7 at such rates as the ,secretary determines are sufficient to cover the costs related to implementing the program described in subsection 7a71 including the costs of any necessary infrastructure or technology4 7#b7 ,deposit of collections ,amounts received from fees assessed and collected under paragraph 7#a7 shall be deposited in1 and credited to1 an account solely for the purpose of carrying out the activities described in subsection 7a74 ,such amounts shall be available to carry out such activities without need of further appropriation and without fiscal year limitation4 #cjb4 ,limit redisclosures and uses of consent-based disclosures of tax return information 7a7 ,in general ,section #fajc7;c7 is amended by adding at the end the following3 ,persons designated by the taxpayer under this subsection 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 taxpayer44 7b7 ,application of penalties ,section #fajc7;a77#c7 is amended by inserting subsection 7c71 after return information under4 7c7 ,effective date ,the amendments made by this section shall apply to disclosures made after the date of the enactment of this ,act4 ,,iv ,expanded use of electronic systems #dja4 ,electronic filing of returns 7a7 ,in general ,section #fjaa7;e77#b77;,a7 is amended by striking #bej and inserting the applicable number of4 7b7 ,applicable number ,section #fjaa7;e7 is amended by adding at the end the following new paragraph3 7#f7 ,applicable number ,for purposes of paragraph 7#b77;,a71 the applicable number shall be determined in accordance with the following table3 7,a7 in the case of calendar years before #bjbj1 #bej1 7,b7 in the case of calendar year #bjbj1 #ajj1 and 7,c7 in the case of calendar years after #bjbj1 #aj4 4 7c7 ,returns filed by a tax return preparer ,section #fjaa7;e77#c7 is amended by adding at the end the following new subparagraph3 7,d7 ,exception for certain preparers located in areas without internet access ,the ,secretary may waive the requirement of subparagraph 7,a7 if the ,secretary determines1 on the basis of an application by the tax return preparer1 that the preparer cannot meet such requirement by reason of being located in a geographic area which does not have access to internet service 7other than dial-up or satellite service74 4 7d7 ,effective date ,the amendments made by this section shall take effect on the date of the enactment of this ,act4 #djb4 ,uniform standards for the use of electronic signatures for disclosure authorizations to1 and other authorizations of1 practitioners ,section #fjfa7;b77#c7 is amended to read as follows3 7#c7 ,published guidance 7,a7 ,in general ,the ,secretary shall publish guidance as appropriate to define and implement any waiver of the signature requirements or any method adopted under paragraph 7#a74 7,b7 ,electronic signatures for disclosure authorizations to1 and other authorizations of1 practitioners ,not later than #f months after the date of the enactment of this subparagraph1 the ,secretary shall publish guidance to establish uniform standards and procedures for the acceptance of taxpayers' signatures appearing in electronic form with respect to any request for disclosure of a taxpayer's return or return information under section #fajc7;c7 to a practitioner or any power of attorney granted by a taxpayer to a practitioner4 7,c7 ,practitioner ,for purposes of subparagraph 7,b71 the term practitioner means any individual in good standing who is regulated under section #ccj of title #ca1 ,united ,states ,code4 4 #djc4 ,payment of taxes by debit and credit cards ,section #fcaa7;d77#b7 is amended by adding at the end the following3 ,the preceding sentence shall not apply to the extent that the ,secretary ensures that any such fee or other consideration is fully recouped by the ,secretary in the form of fees paid to the ,secretary by persons paying taxes imposed under subtitle ,a with credit1 debit1 or charge cards pursuant to such contract4 ,notwithstanding the preceding sentence1 the ,secretary shall seek to minimize the amount of any fee or other consideration that the ,secretary pays under any such contract44 ,april #ac1 #bjah ,reported with an amendment1 committed to the ,committee of the ,whole ,house on the ,state of the ,union1 and ordered to be printed