,,ii #aaeth ,,congress #b;d ,session ,s4 #cbdf ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,july #ai1 #bjah,mr4 ,hatch 7for himself1 ,mr4 ,wyden1 ,mr4 ,grassley1 ,ms4 ,cantwell1 ,mr4 ,roberts1 ,mr4 ,cardin1 ,mr4 ,thune1 ,mr4 ,bennet1 ,mr4 ,isakson1 ,mr4 ,warner1 ,mr4 ,scott1 ,mr4 ,cassidy1 and ,mrs4 ,mc,caskill7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,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 ,first ,act of #bjah4 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 ,secretary ,in this ,act1 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--,taxpayer ,protection ,subtitle ,a--,protection of ,taxpayer ,rights ,,part ,i--,assistance to ,individual ,taxpayers in ,filing ,returns ,sec4 #ajja4 ,return preparation programs for applicable taxpayers4 ,sec4 #ajjb4 ,limit redisclosures and uses of consent-based disclosures of tax return information4 ,sec4 #ajjc4 ,clarification of equitable relief from joint liability4 ,sec4 #ajjd4 ,notice from ,,irs regarding closure of ,taxpayer ,assistance ,centers4 ,,part ,,ii--,whistleblower ,protections ,sec4 #ajaa4 ,whistleblower reforms4 ,,part ,,iii--,reform of ,laws ,governing ,internal ,revenue ,service ,employees ,sec4 #ajba4 ,electronic record retention4 ,sec4 #ajbb4 ,prohibition on rehiring former ,,irs employees who were involuntarily separated for misconduct4 ,sec4 #ajbc4 ,authority to remove or transfer senior ,,irs executives who fail in their performance or engage in serious misconduct4 ,sec4 #ajbd4 ,limitation on access of non-,internal ,revenue ,service employees to returns and return information4 ,sec4 #ajbe4 ,notification of unauthorized inspection or disclosure of returns and return information4 ,,part ,,iv--,exempt ,organizations ,sec4 #ajca4 ,mandatory e-filing by exempt organizations4 ,sec4 #ajcb4 ,prohibit the use of ,,irs funds for political targeting4 ,sec4 #ajcc4 ,notice required before revocation of tax exempt status for failure to file return4 ,,part ,v--,,irs ,audit ,criteria ,sec4 #ajda4 ,report on ,,irs audit criteria4 ,subtitle ,b--,protection of ,taxpayers from ,identity ,theft and ,tax ,fraud ,sec4 #aaja4 ,single point of contact for tax-related identity theft victims4 ,sec4 #aajb4 ,information on identity theft and tax scams4 ,sec4 #aajc4 ,notification of suspected identity theft4 ,,title ,,ii--,stolen ,identity ,fraud ,prevention ,subtitle ,a--,identity ,theft and ,tax ,refund ,fraud ,prevention ,,part ,i--,general ,provisions ,sec4 #bjja4 ,guidelines for stolen identity refund fraud cases4 ,sec4 #bjjb4 ,increased penalty for improper disclosure or use of information by preparers of returns4 ,,part ,,ii--,administrative ,authority ,to ,prevent ,identity ,theft and ,tax ,refund ,fraud ,sec4 #bjaa4 ,authority to transfer ,internal ,revenue ,service appropriations to combat tax fraud4 ,sec4 #bjab4 ,streamlined critical pay authority for information technology positions4 ,sec4 #bjac4 ,access to the ,national ,directory of ,new ,hires to identify and prevent fraudulent tax return filings and claims for refund4 ,sec4 #bjad4 ,repeal of provision regarding certain tax compliance procedures and reports4 ,subtitle ,b--,improvements to ,electronic ,filing of ,tax ,returns ,sec4 #baja4 ,identity protection personal identification numbers4 ,sec4 #bajb4 ,electronic filing of returns4 ,sec4 #bajc4 ,internet platform for ,form #ajii filings4 ,sec4 #bajd4 ,requirement that electronically prepared paper returns include scannable code4 ,sec4 #baje4 ,authentication of users of electronic services accounts4 ,i ,taxpayer ,protection ,a ,protection of ,taxpayer ,rights ,i ,assistance to ,individual ,taxpayers in ,filing ,returns #ajja4 ,return preparation programs for applicable taxpayers 7a7 ,in general ,chapter #gg is amended by inserting after section #gebf the following new section3 #gebf;,a4 ,return preparation programs for applicable taxpayers 7a7 ,establishment of ,volunteer ,income ,tax ,assistance ,matching ,grant ,program ,the ,secretary shall establish a ,community ,volunteer ,income ,tax ,assistance ,matching ,grant ,program under which the ,secretary may1 subject to the availability of appropriated funds1 make grants to provide matching funds for the development1 expansion1 or continuation of qualified return preparation programs assisting applicable taxpayers and members of underserved populations4 7b7 ,use of funds 7#a7 ,in general ,qualified return preparation programs may use grants received under this section for-- 7,a7 ordinary and necessary costs associated with program operation in accordance with cost principles under the applicable ,office of ,management and ,budget circular1 including-- 7i7 wages or salaries of persons coordinating the activities of the program1 7ii7 developing training materials1 conducting training1 and performing quality reviews of the returns prepared under the program1 7iii7 equipment purchases1 and 7iv7 vehicle-related expenses associated with remote or rural tax preparation services1 7,b7 outreach and educational activities described in subsection 7c77#b77;,b71 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 ,requirement of matching funds ,a qualified return preparation program must provide matching funds on a dollar-for-dollar basis for all grants provided under this section4 ,matching funds may include-- 7,a7 the salary 7including fringe benefits7 of individuals performing services for the program1 7,b7 the cost of equipment used in the program1 and 7,c7 other ordinary and necessary costs associated with the program4 ,indirect expenses1 including general overhead of any entity administering the program1 shall not be counted as matching funds4 7c7 ,application 7#a7 ,in general ,each applicant for a grant under this section shall submit an application to the ,secretary at such time1 in such manner1 and containing such information as the ,secretary may reasonably require4 7#b7 ,priority ,in awarding grants under this section1 the ,secretary shall give priority to applications which demonstrate-- 7,a7 assistance to applicable taxpayers1 with emphasis on outreach to1 and services for1 such taxpayers1 7,b7 taxpayer outreach and educational activities relating to eligibility and availability of income supports available through this title1 including the earned income tax credit1 and 7,c7 specific outreach and focus on one or more underserved populations4 7#c7 ,amounts taken into account ,in determining matching grants under this section1 the ,secretary shall only take into account amounts provided by the qualified return preparation program for expenses described in subsection 7b74 7d7 ,program adherence 7#a7 ,in general ,the ,secretary shall establish procedures for1 and shall conduct not less frequently than once every #e calendar years during which a qualified return preparation program is operating under a grant under this section1 periodic site visits-- 7,a7 to ensure the program is carrying out the purposes of this section1 and 7,b7 to determine whether the program meets such program adherence standards as the ,secretary shall by regulation or other guidance prescribe4 7#b7 ,additional requirements for grant recipients not meeting program adherence standards ,in the case of any qualified return preparation program which-- 7,a7 is awarded a grant under this section1 and 7,b7 is subsequently determined-- 7i7 not to meet the program adherence standards described in paragraph 7#a77;,b71 or 7ii7 not to be otherwise carrying out the purposes of this section1 such program shall not be eligible for any additional grants under this section unless such program provides sufficient documentation of corrective measures established to address any such deficiencies determined4 7e7 ,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 applicable taxpayers1 in preparing and filing ,federal income tax returns1 7,b7 which is administered by a qualified entity1 7,c7 in which all 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 organization1 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 pursuant to the grant program under this section4 7,b7 ,eligible organization ,the term eligible organization means-- 7i7 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 #ajjb71 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 7ii7 an organization described in section #eja7;c7 and exempt from tax under section #eja7;a71 7iii7 a local government agency1 including-- 7,i7 a county or municipal government agency1 and 7,,ii7 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 7iv7 a local1 ,state1 regional1 or national coalition 7with one lead organization which meets the eligibility requirements of clause 7i71 7ii71 or 7iii7 acting as the applicant organization71 or 7v7 in the case of applicable taxpayers and members of underserved populations with respect to which no organizations described in the preceding clauses are available-- 7,i7 a ,state government agency1 or 7,,ii7 an office providing ,cooperative ,extension services 7as established at the land-grant colleges and universities under the ,smith-,lever ,act of ,may #h1 #aiad74 7#c7 ,applicable taxpayers ,the term applicable taxpayer means a taxpayer whose income for the taxable year does not exceed an amount equal to the completed phaseout amount under section #cb7;b7 for a married couple filing a joint return with three 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 7f7 ,special rules and limitations 7#a7 ,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#b7 ,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 grants under this section4 7g7 ,promotion of programs 7#a7 ,in general ,the ,secretary shall promote tax preparation through qualified return preparation programs through the use of mass communications and other means4 7#b7 ,provision of information regarding qualified return preparation programs ,the ,secretary may provide taxpayers information regarding qualified return preparation programs receiving grants under this section4 7#c7 ,,vita grantee referral ,qualified return preparation programs receiving a grant under this section are encouraged1 in appropriate cases1 to-- 7,a7 advise taxpayers of the availability of1 and eligibility requirements for receiving1 advice and assistance from qualified low-income taxpayer clinics receiving funding under section #gebf1 and 7,b7 provide information regarding the location of1 and contact information for1 such clinics4 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 ,sec4 #gebf;,a4 ,return preparation programs for applicable taxpayers4 4 #ajjb4 ,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 that is #f months after the date of the enactment of this ,act4 #ajjc4 ,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 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 or after the date of the enactment of this ,act4 #ajjd4 ,notice from ,,irs regarding closure of ,taxpayer ,assistance ,centers ,not later than #ij days before the date that a proposed closure of a ,taxpayer ,assistance ,center would take effect1 the ,secretary shall-- 7#a7 make publicly available 7including by non-electronic means7 a notice which-- 7,a7 identifies the ,taxpayer ,assistance ,center proposed for closure and the date of such proposed closure2 and 7,b7 identifies the relevant alternative sources of taxpayer assistance which may be utilized by taxpayers affected by such proposed closure2 and 7#b7 submit to ,congress a written report that includes-- 7,a7 the information included in the notice described in paragraph 7#a72 7,b7 the reasons for such proposed closure2 and 7,c7 such other information as the ,secretary may determine appropriate4 ,,ii ,whistleblower ,protections #ajaa4 ,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 #fj 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 #fj 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 7d7 ,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,a77i7 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 ,,iii ,reform of ,laws ,governing ,internal ,revenue ,service ,employees #ajba4 ,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 #bjai1 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 not less than #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 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 ,committee on ,ways and ,means of the ,house of ,representatives and the ,committee on ,finance of the ,senate that the ,internal ,revenue ,service is in compliance with such requirements4 7#b7 ,reports 7,a7 ,interim report ,not later than ,december #ca1 #bjai1 the ,treasury ,inspector ,general for ,tax ,administration shall submit a report to the ,committee on ,ways and ,means of the ,house of ,representatives and the ,committee on ,finance of the ,senate 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 #bjbj1 the ,treasury ,inspector ,general for ,tax ,administration shall submit a report to the ,committee on ,ways and ,means of the ,house of ,representatives and the ,committee on ,finance of the ,senate 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 ,register2 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 ,service2 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 ,service2 and 7,b7 is not a principal officer of the ,internal ,revenue ,service4 #ajbb4 ,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 ,notwithstanding any other provision of law1 the ,commissioner may not hire any individual previously employed by the ,commissioner-- 7#a7 who was removed for misconduct or unacceptable performance under this subchapter1 chapter #dc or chapter #ge of title #e1 ,united ,states ,code1 or a similar provision of law1 7#b7 who has voluntarily separated after receiving a notice of proposed action of removal for misconduct or unacceptable performance1 or 7#c7 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 ,the amendment made by subsection 7a7 shall apply with respect to the hiring of employees after the date of the enactment of this ,act4 #ajbc4 ,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 section #abjc7;f7 of the ,internal ,revenue ,service ,restructuring and ,reform ,act of #aiih1 as added by this ,act4 7#c7 ,waiver ,the ,merit ,systems ,protection ,board may waive any other regulation in order to provide for the expedited review required under section #abjc7;f7 of the ,internal ,revenue ,service ,restructuring and ,reform ,act of #aiih1 as added by this ,act4 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 section #abjc7;f7 of the ,internal ,revenue ,service ,restructuring and ,reform ,act of #aiih1 as added by this ,act1 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 #ajbd4 ,limitation on access of non-,internal ,revenue ,service employees to returns and return information 7a7 ,in general ,section #gfjb is amended by adding at the end the following new subsection3 7f7 ,limitation on access of persons other than ,internal ,revenue ,service officers and employees ,the ,secretary shall not1 under the authority of section #fajc7n71 provide any books1 papers1 records1 or other data obtained pursuant to this section to any person authorized under section #fajc7n71 except when such person requires such information for the sole purpose of providing expert evaluation and assistance to the ,internal ,revenue ,service4 ,no person other than an officer or employee of the ,internal ,revenue ,service or the ,office of ,chief ,counsel may1 on behalf of the ,secretary1 question a witness under oath whose testimony was obtained pursuant to this section4 4 7b7 ,effective date 7#a7 ,in general ,except as provided in paragraph 7#b71 the amendment made by this section shall take effect on the date of the enactment of this ,act4 7#b7 ,application to contracts in effect ,the amendment made by this section shall apply to any contract in effect under section #fajc7n7 of the ,internal ,revenue ,code of #aihf1 pursuant to temporary ,treasury ,regulation section #cja4gfjb-a,t proposed in ,internal ,revenue ,bulletin #bjad-bh1 ,treasury ,regulation section #cja4gfjb-a7;b77#c71 or any similar or successor regulation1 that is in effect on the date of the enactment of this ,act4 #ajbe4 ,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 ,,iv ,exempt ,organizations #ajca4 ,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 #fjcc7n7 shall be made available by the ,secretary to the public as soon as practicable in a machine readable format44 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 organizations1 or any other organizations for which the ,secretary of the ,treasury or the ,secretary's delegate 7hereafter referred to in this paragraph as the ,secretary7 determines the application of the amendments made by this section would cause undue burden without a delay1 the ,secretary may delay the application of such amendments1 but not later than taxable years beginning #b years 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 #bjj1jjj2 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 delay the application of the amendments made by this section1 but not later than taxable years beginning #b years after the date of the enactment of this ,act4 #ajcb4 ,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 #ajcc4 ,notice required before revocation of tax exempt status for failure to file return 7a7 ,in general ,section #fjcc7;j77#a7 is amended by striking ,if an organization and inserting the following3 7,a7 ,notice 7i7 ,in general ,after an organization described in subsection 7a77#a7 or 7i7 fails to file the annual return or notice required under either subsection for #b consecutive years1 the ,secretary shall notify the organization-- 7,i7 that the ,internal ,revenue ,service has no record of such a return or notice from such organization for #b consecutive years1 and 7,,ii7 about the revocation that will occur under subparagraph 7,b7 if the organization fails to file such a return or notice by the due date for the next such return or notice required to be filed4 ,the notification under the preceding sentence shall include information about how to comply with the filing requirements under subsection 7a77#a7 and 7i74 7,b7 ,revocation ,if an organization 4 7b7 ,effective date ,the amendment made by this section shall apply to failures to file returns or notices for #b consecutive years if the return or notice for the second year is required to be filed after ,december #ca1 #bjah4 ,v ,,irs ,audit ,criteria #ajda4 ,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 ,committee on ,ways and ,means of the ,house of ,representatives and the ,committee on ,finance of the ,senate 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 ,protection of ,taxpayers from ,identity ,theft and ,tax ,fraud #aaja4 ,single point of contact for tax-related 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 tax-related 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 ,internal ,revenue ,service employees 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 shall 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 case2 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 history2 and 7,b7 notify the taxpayer when appropriate4 #aajb4 ,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 #aajc4 ,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 number1 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 of the ,internal ,revenue ,code of #aihf 7as added by subsection 7a77 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 that is #f months after the date of the enactment of this ,act4 ,,ii ,stolen ,identity ,fraud ,prevention ,a ,identity ,theft and ,tax ,refund ,fraud ,prevention ,i ,general ,provisions #bjja4 ,guidelines for stolen identity refund fraud cases 7a7 ,in general ,not later than #f months after the date of the enactment of this ,act1 the ,secretary1 in consultation with the ,national ,taxpayer ,advocate1 shall develop and implement publicly available guidelines for management of cases involving stolen identity refund fraud in a manner that reduces the administrative burden on taxpayers who are victims of such fraud4 7b7 ,standards and procedures ,to be considered ,the guidelines described in subsection 7a7 may include-- 7#a7 standards for-- 7,a7 the average length of time in which a case involving stolen identity refund fraud should be resolved2 7,b7 the maximum length of time1 on average1 a taxpayer who is a victim of stolen identity refund fraud and is entitled to a tax refund which has been stolen should have to wait to receive such refund2 and 7,c7 the maximum number of offices and employees within the ,internal ,revenue ,service with whom a taxpayer who is a victim of stolen identity refund fraud should be required to interact in order to resolve a case2 7#b7 standards for opening1 assigning1 reassigning1 or closing a case involving stolen identity refund fraud2 and 7#c7 procedures for implementing and accomplishing the standards described in paragraphs 7#a7 and 7#b71 and measures for evaluating such procedures and determining whether such standards have been successfully implemented4 #bjjb4 ,increased penalty for improper disclosure or use of information by preparers of returns 7a7 ,in general ,section #fgac is amended-- 7#a7 by redesignating subsections 7b7 and 7c7 as subsections 7c7 and 7d71 respectively2 and 7#b7 by inserting after subsection 7a7 the following new subsection3 7b7 ,enhanced penalty for improper use or disclosure relating to identity theft 7#a7 ,in general ,in the case of a disclosure or use described in subsection 7a7 that is made in connection with a crime relating to the misappropriation of another person's taxpayer identity 7as defined in section #fajc7;b77#f771 whether or not such crime involves any tax filing1 subsection 7a7 shall be applied-- 7,a7 by substituting #a1jjj for #bej1 and 7,b7 by substituting #ej1jjj for #aj1jjj4 7#b7 ,separate application of total penalty limitation ,the limitation on the total amount of the penalty under subsection 7a7 shall be applied separately with respect to disclosures or uses to which this subsection applies and to which it does not apply4 4 7b7 ,criminal penalty ,section #gbaf7;a7 is amended by striking #a1jjj and inserting #a1jjj 7#ajj1jjj in the case of a disclosure or use to which section #fgac7;b7 applies74 7c7 ,effective date ,the amendments made by this section shall apply to disclosures or uses on or after the date of the enactment of this ,act4 ,,ii ,administrative ,authority ,to ,prevent ,identity ,theft and ,tax ,refund ,fraud #bjaa4 ,authority to transfer ,internal ,revenue ,service appropriations to combat tax fraud 7a7 ,in general ,for any fiscal year1 in addition to any other authority to transfer amounts appropriated to an ,internal ,revenue ,service account1 the ,commissioner of ,internal ,revenue 7referred to in this section as the ,commissioner7 may transfer not more than #aj1jjj1jjj to any account of the ,internal ,revenue ,service from amounts appropriated to other ,internal ,revenue ,service accounts4 ,any amounts so transferred shall be used solely for the purposes of preventing1 detecting1 and resolving potential cases of tax fraud1 which may include educating taxpayers about common tax fraud scams and how to protect themselves from such scams4 7b7 ,limitation ,the ,commissioner shall not transfer any amounts described in subsection 7a7 unless the ,commissioner has determined that taxpayer services provided by the ,internal ,revenue ,service to the public 7including telephone operations1 forms and publications1 and similar types of taxpayer assistance7 will not be impaired by such transfer4 #bjab4 ,streamlined critical pay authority for information technology positions 7a7 ,authority ,section #iejc7;a7 of title #e1 ,united ,states ,code1 is amended-- 7#a7 in the matter preceding paragraph 7#a71 by striking the ,secretary of the ,treasury and all that follows through establish and inserting the ,secretary of the ,treasury may1 during the period beginning on ,october #a1 #bjah1 and ending on ,september #cj1 #bjbc1 establish2 and 7#b7 in paragraph 7#a77;,b71 by striking the ,internal ,revenue ,service's successful accomplishment of an important mission and inserting the functionality of the information technology operations of the ,internal ,revenue ,service4 7b7 ,recruitment1 retention1 relocation incentives1 and relocation expenses ,section #iejd of title #e1 ,united ,states ,code1 is amended-- 7#a7 in subsection 7a7-- 7,a7 by striking ,before ,september #cj1 #bjac and inserting ,during the period beginning on ,october #a1 #bjah1 and ending on ,september #cj1 #bjbc2 and 7,b7 by inserting for employees holding positions described in section #iejc7;a77#a7 after incentives2 and 7#b7 in subsection 7b7-- 7,a7 by striking ,before ,september #cj1 #bjac and inserting ,during the period beginning on ,october #a1 #bjah1 and ending on ,september #cj1 #bjbc2 7,b7 by striking employees transferred or reemployed and inserting employees holding positions described in section #iejc7;a77#a7 who are transferred or reemployed during such period2 and 7,c7 by striking section #iejb or #iejc after ,june #a1 #aiih and inserting section #iejc during such period4 7c7 ,performance awards for ,senior ,executives ,section #ieje7;a7 of title #e1 ,united ,states ,code1 is amended-- 7#a7 by striking ,before ,september #cj1 #bjac and inserting ,during the period beginning on ,october #a1 #bjah1 and ending on ,september #cj1 #bjbc2 and 7#b7 by striking significant functions and inserting the information technology operations4 7d7 ,effective date ,the amendments made by this section shall apply to payments made on or after the date of the enactment of this ,act4 #bjac4 ,access to the ,national ,directory of ,new ,hires to identify and prevent fraudulent tax return filings and claims for refund 7a7 ,in general ,paragraph 7#c7 of section #dec7;i7 of the ,social ,security ,act 7#db ,u4,s4,c4 #fec7;i77 is amended to read as follows3 7#c7 ,administration of ,federal tax laws ,the ,secretary of the ,treasury shall have access to the information in the ,national ,directory of ,new ,hires for the purposes of-- 7,a7 administering section #cb of the ,internal ,revenue ,code of #aihf1 7,b7 verifying a claim with respect to employment in a tax return1 and 7,c7 identifying and preventing fraudulent tax return filings and claims for refund under the ,internal ,revenue ,code of #aihf4 4 7b7 ,effective date ,the amendment made by this section shall take effect on the date of the enactment of this ,act4 #bjad4 ,repeal of provision regarding certain tax compliance procedures and reports ,section #bjjd of the ,internal ,revenue ,service ,restructuring and ,reform ,act of #aiih 7#bf ,u4,s4,c4 #fjab note7 is repealed4 ,b ,improvements to ,electronic ,filing of ,tax ,returns #baja4 ,identity protection personal identification numbers ,not later than #e years after the date of the enactment of this ,act1 the ,secretary shall establish a program to issue1 upon the request of any individual1 a number which may be used in connection with such individual's social security number 7or other identifying information with respect to such individual as determined by the ,secretary7 to assist the ,secretary in verifying such individual's identity4 #bajb4 ,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 striking paragraph 7#e7 and inserting the following new paragraphs3 7#e7 ,applicable number 7,a7 ,in general ,for purposes of paragraph 7#b77;,a71 the applicable number shall be-- 7i7 except as provided in subparagraph 7,b71 in the case of calendar years before #bjbj1 #bej1 7ii7 in the case of calendar year #bjbj1 #ajj1 and 7iii7 in the case of calendar years after #bjbj1 #aj4 7,b7 ,special rule for partnerships for #bjah and #bjai ,in the case of a partnership1 for any calendar year before #bjbj1 the applicable number shall be-- 7i7 in the case of calendar year #bjah1 #bjj1 and 7ii7 in the case of calendar year #bjai1 #aej4 7#f7 ,partnerships required to file on magnetic media ,notwithstanding paragraph 7#b77;,a71 the ,secretary shall require partnerships having more than #ajj partners to file returns on magnetic media4 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 #bajc4 ,internet platform for ,form #ajii filings 7a7 ,in general ,not later than ,january #a1 #bjbc1 the ,secretary 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 #ajii2 7#b7 prepare ,forms #ajii for distribution to recipients other than the ,internal ,revenue ,service2 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 taxpayers2 and 7#b7 comply with applicable security standards and guidelines4 #bajd4 ,requirement that electronically prepared paper returns include scannable code 7a7 ,in general ,subsection 7e7 of section #fjaa1 as amended by section #bajb7;b7 of this ,act1 is amended by adding at the end the following new paragraph3 7#g7 ,special rule for returns prepared electronically and submitted on paper ,the ,secretary shall require that any return of tax which is prepared electronically1 but is printed and filed on paper1 bear a code which can1 when scanned1 convert such return to electronic format4 4 7b7 ,conforming amendment ,paragraph 7#a7 of section #fjaa7;e7 is amended by striking paragraph 7#c7 and inserting paragraphs 7#c7 and 7#g74 7c7 ,effective date ,the amendments made by this section shall apply to returns of tax the due date for which 7determined without regard to extensions7 is after ,december #ca1 #bjai4 #baje4 ,authentication of users of electronic services accounts ,beginning #ahj days after the date of the enactment of this ,act1 the ,secretary shall verify the identity of any individual opening an e-,services account with the ,internal ,revenue ,service before such individual is able to use the e-,services tools4