,,ii  #aag? ,,congress  #a/ ,session    
,s4 #aghh  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,may #bd1 #bjba,ms4    
,w>r5 introduc$ ! foll[+ bill2 :i* 0    
read twice & ref]r$ to ! ,committee on  
,f9ance  ,a ,,bill  ,to provide         
appropriations = ! ,int]nal ,rev5ue     
,s]vice to ov]haul te*nology & /r5g!n   
en=cem5t1 & = o!r purposes4  #a4 ,%ort  
title ,?is ,act may be cit$ z ! ,re/or+ 
! ,,irs ,act4  #b4 ,s5se ( ,congress ,x 
is ! s5se ( ,congress t-- 7#a7 !        
,int]nal ,rev5ue ,s]vice %\ld be giv5   
res\rces to increase audits & en=cem5t (
 tax compliance ( high-income1          
high-weal? individuals & corporations1 )
 an emphasis on ! audit+ & en=cem5t (   
tax compliance by individuals ) gross   
income ( n less ?an #a1jjj1jjj & ( l>ge 
corporations2  7#b7 priorities = actions
 & res\rces to improve compliance ) tax 
laws %\ld be guid$ by ! relative rev5ue 
loss f non-compliance2  7#c7 ! ,int]nal 
,rev5ue ,s]vice %\ld ensure !re are n   
racial disp>ities 9 its en=cem5t        

activities2  7#d7 x %\ld be ! goal ( !  
,int]nal ,rev5ue s]vice t1 by ! t5? tax 
ye> aft] ! date ( ! enactm5t ( ?is ,act1
 ! net tax gap %\ld be r$uc$ by at lea/ 
"o-?ird1 z comp>$ ) ! fraction e/imat$ 9
 ! mo/ rec5tly ,int]nal ,rev5ue ,s]vice 
/udy prior to su* date ( enactm5t2 &    
7#e7 x %\ld be ! goal ( ! ,int]nal      
,rev5ue ,s]vice to provide quality1     
timely1 & accurate assi/ance to all     
taxpay]s int]act+ ) ! ,int]nal ,rev5ue  
,s]vice4  #c4 ,int]nal ,rev5ue ,s]vice  
appropriations  7a7 ,9 g5]al ,!re is    
h]eby appropriat$ to ea* fiscal ye> end+
 aft] fiscal ye> #bjba1 out ( any moneys
 9 ! ,treasury n o!rwise appropriat$1   
#ca1ejj1jjj1jjj1 = necess>y exp5ses =   
activities ( ! ,int]nal ,rev5ue ,s]vice 
relat$ to ! foll[+ activities3 7#a7 ,to 
provide taxpay] s]vices1 includ+        
pre-fil+ assi/ance & education1 fil+ &  
acc\nt s]vices1 taxpay] advocacy        
s]vices1 o!r s]vices z au?oriz$ by #e   
,u4,s4,c4 #caji1 at su* rates z may be  
det]m9$ by ! ,commission]1 & o!r relat$ 

exp5ses1 includ+ ! ,tax ,c\nsel+ = !    
,eld]ly ,program1 l[-income taxpay]     
cl9ic grants1 & ! ,taxpay] ,advocate    
,s]vice4  7#b7 ,tax en=cem5t activities 
to det]m9e & collect ow$ taxes1 to      
provide legal & litigation support1 to  
conduct crim9al inve/igations1 to en=ce 
crim9al /atutes relat$ to violations (  
int]nal rev5ue laws & o!r f9ancial      
crimes1 to pur*ase & hire pass5g] motor 
vehicles 7#ca ,u4,s4,c4 #acdc7;b771 to  
increase audits ( high-income taxpay]s1 
& to provide o!r s]vices z au?oriz$ by  
#e ,u4,s4,c4 #caji1 at su* rates z may  
be det]m9$ by ! ,commission]4  7#c7 ,to 
support taxpay] s]vices & en=cem5t      
programs & activities1 includ+ r5t      
paym5ts2 facilities s]vices2 pr9t+2     
po/age2 physical security2 headqu>t]s & 
o!r ,,irs-wide adm9i/ration activities2 
rese>* & /ati/ics ( income2             
telecommunications2 in=mation te*nology 
developm5t & support1 enhancem5t1       
op]ations1 ma9t5ance1 & security2 ! hire
 ( pass5g] motor vehicles 7#ca ,u4,s4,c4

 #acdc7;b772 ! op]ations ( ! ,int]nal   
,rev5ue ,s]vice ,ov]sight ,bo>d2 & o!r  
s]vices z au?oriz$ by #e ,u4,s4,c4      
#caji1 at su* rates z may be det]m9$ by 
! ,commission]4  7#d7 ,= ! bus9ess      
sy/ems mod]nization program = ! capital 
asset acquisition ( in=mation te*nology 
sy/ems1 includ+ managem5t & relat$      
contractual co/s ( said acquisitions1   
includ+ relat$ ,int]nal ,rev5ue ,s]vice 
labor co/s1 & contractual co/s associat$
 ) op]ations au?oriz$ by #e ,u4,s4,c4   
#caji4  7b7 ,inflation adju/m5t  7#a7 ,9
 g5]al ,9 ! case ( any fiscal ye> beg9n+
 aft] fiscal ye> #bjbb1 ! doll> am\nt 9 
subsection 7a7 %all be increas$ by an   
am\nt equal to-- 7,a7 su* doll> am\nt1  
multipli$ by  7,b7 ! co/-(-liv+ adju/m5t
 det]m9$ "u section #a7;f77#c7 ( !      
,int]nal ,rev5ue ,code ( #aihf = !      
cal5d> ye> 9 :i* su* fiscal ye> beg9s by
 sub/itut+ cal5d> ye> #bjba = cal5d> ye>
 #bjaf 9 subp>agraph 7,a77ii7 !re(4     
7#b7 ,r\nd+ ,any increase det]m9$ "u    
p>agraph 7#a7 %all be r\nd$ to ! ne>e/  

multiple ( #ajj4  7c7 ,limitation ,( !  
am\nts appropriat$ "u subsection 7a7--  
7#a7 n less ?an #ej p]c5t ( funds made  
available = any fiscal ye> %all be us$ =
 purposes describ$ 9 subsection 7a77#b7 
7or = activities describ$ 9 subsection  
7a77#c7 t are relat$ to activities      
describ$ 9 subsection 7a77#b72 &  7#b7 n
 less ?an #ae p]c5t ( funds made        
available = any fiscal ye> %all be us$ =
 purposes describ$ 9 subsection 7a77#a74
  7d7 ,adm9i/rative provisions ,none ( !
 funds made available 9 ?is section may 
be us$ to ent] into1 r5ew1 ext5d1       
adm9i/]1 implem5t1 or en=ce any qualifi$
 tax collection contract 7z def9$ 9     
section #fcjf ( ! ,int]nal ,rev5ue ,code
 ( #aihf74  #d4 ,returns relat+ to c]ta9
 bus9ess transactions  7a7 ,9 g5]al     
7#a7 ,return requirem5t ,subp>t ,b ( "p 
,,iii ( sub*apt] ,a ( *apt] #fa ( !     
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by add+ at ! end ! foll[+ new section3  
#fjej,z4 ,returns relat+ to acc\nt      
transactions  7a7 ,requirem5t ( report+ 

,any cov]$ f9ancial in/itution %all make
 ! in=mation return describ$ 9          
subsection 7b7 at su* "t z ! ,secret>y  
may by regulations prescribe4  7b7      
,return ,a return is describ$ 9 ?is     
subsection if su* return-- 7#a7 is 9 su*
 =m z ! ,secret>y may prescribe1 &  7#b7
 conta9s1 ) respect to ea* acc\nt       
ma9ta9$ by ! cov]$ f9ancial in/itution--
 7,a7 ! "n1 address1 & ,,t9 ( ! p]son on
 ^: behalf ! acc\nt is ma9ta9$1  7,b7 ! 
mon?ly gross infl[s & outfl[s ) respect 
to su* acc\nt1  7,c7 9 ! case ( an      
acc\nt t is n relat$ to a trade or      
bus9ess1 ! am\nt ( su* infl[s & outfl[s 
t are relat$ to-- 7i7 ca% transactions1 
7ii7 =eign transactions1 &  7iii7       
transf]s to relat$ acc\nts1 &  7,d7 su* 
o!r in=mation z ! ,secret>y may require 
= tax adm9i/ration & en=cem5t purposes4 
7c7 ,/atem5t ,to be furni%$ to taxpay]s 
) respect to :om in=mation is requir$   
7#a7 ,9 g5]al ,e cov]$ f9ancial         
in/itution t is requir$ to make a return
 "u subsection 7a7 %all furni% to ea*   

p]son ^: id5tity is requir$ to be set =?
 9 su* return a writt5 /atem5t %[+--    
7,a7 ! "n1 address1 & phone numb] ( !   
in=mation contact ( ! cov]$ f9ancial    
in/itution requir$ to make su* a return1
 &  7,b7 ! in=mation requir$ to be %[n  
on su* return ) respect to su* p]son4   
7#b7 ,furni%+ ( in=mation ,! writt5     
/atem5t requir$ "u p>agraph 7#a7 %all be
 furni%$ to ! p]son on or be=e ,janu>y  
#ca ( ! ye> foll[+ ! cal5d> ye> = :i* ! 
return "u subsection 7a7 is requir$ to  
be made4  7d7 ,cov]$ f9ancial in/itution
 ,= purposes ( ?is section1 ! t]m cov]$ 
f9ancial in/itution means any f9ancial  
in/itution 7z det]m9$ "u regulations    
provid$ by ! ,secret>y7 :i* ma9ta9s an  
acc\nt on behalf ( ano!r p]son4  4  7#b7
 ,regulations  7,a7 ,9 g5]al ,n lat] ?an
 #ab mon?s aft] ! date ( ! enactm5t (   
?is ,act1 ! ,secret>y ( ! ,treasury 7or 
! ,secret>y's delegate7 %all issue      
regulations on in=mation report+ requir$
 "u section #fjej,z ( ! ,int]nal ,rev5ue
 ,code ( #aihf 7z add$ by p>agraph      

7#a771 includ+ regulations specify+ any 
o!r in=mation requir$ to be report$ "u  
su* section = purposes ( clos+ ! tax gap
 7z def9$ 9 section #d7;a77#b774  7,b7  
,avoidance ( additional burd5 ,!        
regulations e/abli%$ "u subp>agraph 7,a7
 %all m9imize additional report+ burd5s 
on taxpay]s4  7b7 ,p5alties  7#a7       
,returns ,section #fgbd7;d77#a77;,b7 ( !
 ,int]nal ,rev5ue ,code ( #aihf is am5d$
 by /rik+ or at ! end ( clause 7xxv71 by
 /rik+ & at ! end ( clause 7xxvi71 & by 
ins]t+ aft] clause 7xxvi7 ! foll[+ new  
clause3  7xxvii7 section #fjej,z 7relat+
 to in=mation ) respect to acc\nt       
transactions71  4  7#b7 ,/atem5ts       
,section #fgbd7;d77#b7 ( su* ,code is   
am5d$-- 7,a7 by /rik+ or at ! end (     
subp>agraph 7,,ii71  7,b7 by /rik+ !    
p]iod at ! end ( ! fir/ subp>agraph     
7,,jj7 7relat+ to section #fjce7 &      
ins]t+ a comma1  7,c7 by r$esignat+ !   
second subp>agraph 7,,jj7 7relat+ to    
section #fjej,y7 z subp>agraph 7,,kk71  
7,d7 by /rik+ ! p]iod at ! end (        

subp>agraph 7,,kk7 7z r$esignat$ by     
subp>agraph 7,c77 & ins]t+ 1 or1 &  7,e7
 by ins]t+ aft] subp>agraph 7,,kk7 7z s 
r$esignat$7 ! foll[+ new subp>agraph3   
7,,ll7 section #fjej,z 7relat+ to       
in=mation ) respect to acc\nt           
transactions74 4  7c7 ,cl]ical am5dm5t  
,! table ( sections = subp>t ,b ( "p    
,,iii ( sub*apt] ,a ( *apt] #fa ( su*   
,code is am5d$ by add+ at ! end ! foll[+
 new item3  ,sec4 #fjej,z4 ,returns     
relat+ to acc\nt transactions4  4  7d7  
,effective date ,! am5dm5ts made by ?is 
section %all apply to taxable ye>s      
beg9n+ aft] ,decemb] #ca1 #bjbb4  #e4   
,reports to ,congress ,n lat] ?an #a ye>
 aft] ! date ( ! enactm5t ( ?is ,act &  
annually !reaft]1 ! ,commission] ( !    
,int]nal ,rev5ue ,s]vice1 aft]          
consultation ) ! ,comptroll] ,g5]al1    
%all submit to ,congress a report       
conta9+ ! foll[+3 7#a7 ,audit plan ,a   
compreh5sive description (-- 7,a7 a plan
 to-- 7i7 %ift m ( ! audit+ & en=cem5t  
assets ( ! ,int]nal ,rev5ue ,s]vice t[>d

 high-income1 high-weal? tax fil]s &    
corporations1 &  7ii7 recruit & reta9   
auditors ) ! skills ess5tial to audit   
high-income individuals1 &  7,b7 !      
progress made 9 implem5t+ su* plan4     
7#b7 ,tax gap analysis  7,a7 ,9 g5]al ,a
 compreh5sive description ( ! tax gap1  
includ+-- 7i7 ! am\nt attribut$ to      
high-income1 high-weal? tax fil]s &     
corporations1 &  7ii7 h[ o!r in=mation  
report+ improvem5ts c\ld r$uce ! tax    
gap1 includ+ /r5g!n$ ?ird-p>ty report+  
on own]%ip ( ,c-corporations & ultimate 
own]%ip ( p>tn]%ips4  7,b7 ,tax gap ,=  
purposes ( ?is p>agraph1 ! t]m tax gap  
means1 ) respect to any tax ye>1 !      
diff]5ce betwe5-- 7i7 ! am\nt ( taxes   
ow$ by taxpay]s "u ! ,int]nal ,rev5ue   
,code ( #aihf = su* tax ye>1 &  7ii7 !  
am\nt ( rev5ue paid volunt>ily & timely 
by taxpay]s "u su* ,code = su* tax ye>4 
7#c7 ,racial disp>ities analysis ,a     
compreh5sive analysis & description (   
:e!r !re exi/ any racial disp>ities 9 ! 
,int]nal ,rev5ue ,s]vice's en=cem5t     

activities1 includ+ audits1 bas$ on     
gross income1 includ+ a compreh5sive    
description ( any plans ! ,int]nal      
,rev5ue ,s]vice has to address any su*  
disp>ities 9 ! com+ fiscal ye>4  #f4    
,und]paym5t p5alties increas$ = c]ta9   
taxpay]s  7a7 ,9 g5]al ,subsection 7a7 (
 section #fffb ( ! ,int]nal ,rev5ue     
,code ( #aihf is am5d$ to read z foll[s3
  7a7 ,imposition ( p5alty  7#a7 ,9     
g5]al ,if ?is section applies to any    
portion ( an und]paym5t ( tax requir$ to
 be %[n on a return1 !re %all be add$ to
 ! tax an am\nt equal to ! applicable   
p]c5tage ( ! portion ( ! und]paym5t to  
:i* ?is section applies4  7#b7          
,applicable p]c5tage ,= purposes (      
p>agraph 7#a71 ! t]m applicable p]c5tage
 means-- 7,a7 9 ! case ( a taxpay] ) a  
taxable income ( less ?an #b million1   
#bj p]c5t1  7,b7 9 ! case ( a taxpay] ) 
a taxable income great] ?an #b million b
 less ?an #e million1 #cj p]c5t1 &  7,c7
 9 ! case ( a taxpay] ) a taxable income
 great] ?an #e million1 #dj p]c5t4  4   

7b7 ,con=m+ am5dm5ts  7#a7 ,gross       
valuation mis/atem5ts ,section          
#fffb7;h77#a7 ( su* ,code is am5d$ by   
/rik+ ) respect to su* portion by       
sub/itut+ & all t foll[s & ins]t+ )     
respect to su* portion-- 7,a7 by        
sub/itut+ #dj p]c5t = #bj p]c5t 9       
p>agraph 7#b77;,a7 !re(1  7,b7 by       
sub/itut+ #de p]c5t = #cj p]c5t 9       
p>agraph 7#b77;,b7 !re(1 &  7,c7 by     
sub/itut+ #ej p]c5t = #dj p]c5t 9       
p>agraph 7#b77;,c7 !re(4  4  7#b7       
,nondisclos$ noneconomic sub/ance       
transactions ,section #fffb7;i77#a7 (   
su* ,code is am5d$ by /rik+ ) respect to
 su* portion by sub/itut+ & all t foll[s
 & ins]t+ ) respect to su* portion--    
7,a7 by sub/itut+ #dj p]c5t = #bj p]c5t 
9 p>agraph 7#b77;,a7 !re(1  7,b7 by     
sub/itut+ #de p]c5t = #cj p]c5t 9       
p>agraph 7#b77;,b7 !re(1 &  7,c7 by     
sub/itut+ #ej p]c5t = #dj p]c5t 9       
p>agraph 7#b77;,c7 !re(4  4  7#c7       
,undisclos$ =eign f9ancial asset        
und]/atem5ts ,section #fffb7;j77#c7 (   

su* ,code is am5d$ by /rik+ ) respect to
 su* portion by sub/itut+ & all t foll[s
 & ins]t+ ) respect to su* portion--    
7,a7 by sub/itut+ #dj p]c5t = #bj p]c5t 
9 p>agraph 7#b77;,a7 !re(1  7,b7 by     
sub/itut+ #de p]c5t = #cj p]c5t 9       
p>agraph 7#b77;,b7 !re(1 &  7,c7 by     
sub/itut+ #ej p]c5t = #dj p]c5t 9       
p>agraph 7#b77;,c7 !re(4  4  7c7        
,effective date ,! am5dm5ts made by ?is 
section %all apply to returns on ! due  
date :i* 7det]m9$ )\t reg>d to          
ext5sions7 is aft] ,decemb] #ca1 #bjbb4 
#g4 ,application ( false claims rules to
 ! tax claims  7a7 ,9 g5]al ,subsection 
7d7 ( section #cgbi ( title #ca1 ,unit$ 
,/ates ,code is am5d$ to read z foll[s3 
7d7 ,int]nal rev5ue code  7#a7 ,g5]al   
exclusion ,except z provid$ "u p>agraph 
7#b71 ?is section does n apply to       
claims1 records1 or /atem5ts made "u !  
,int]nal ,rev5ue ,code ( #aihf4  7#b7   
,exception ,?is section %all apply to   
any claims1 records1 or /atem5ts made "u
 ! ,int]nal ,rev5ue ,code ( #aihf if--  

7,a7 ! gross income ( ! p]son mak+ !    
claim equals or exce$s #aj1jjj1jjj = !  
taxable ye> ) respect to :i* ! claim is 
made2 &  7,b7 ! damages su/a9$ by !     
,gov]nm5t because ( ! act ( ! p]son     
exce$ #a1jjj1jjj4  4  7b7 ,effective    
date ,! am5dm5ts made by ?is section    
%all apply to claims1 records1 or       
/atem5ts made aft] ! date ( ! enactm5t (
 ?is ,act4