,,ii  #aag? ,,congress  #a/ ,session    
,s4 #aheg  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,may #bf1 #bjba ,mr4   
,k+ 7= himself1 ,mr4 ,br[n1 & ,mr4      
,ka9e7 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 ! ,/op    
,corporations & ,high ,e>n]s f ,avoid+  
,taxes & ,en=ce ! ,rules ,/rictly ,act  
or ! ,/op ,,*eat]s ,act4  #b4 ,policy ( 
,congress ,x is ! policy ( ,congress t--
  7#a7 tax compliance1 to raise rev5ue =
 national ne$s1 re/ore fairness1 &      
protect ! integrity ( ! tax sy/em1      
high-income ,unit$ ,/ates citiz5s &     
corporations %\ld pay all ( ! taxes !y  
owe1  7#b7 tax compliance1 z indicat$ by
 ! fraction ( taxes due t are report$ & 
paid1 %\ld be comp>able among gr\ps (   
taxpay]s reg>dless ( ! legal entity1    
7#c7 ! ,int]nal ,rev5ue ,s]vice %\ld be 

giv5 res\rces to increase audits &      
en=cem5t ( tax compliance ( high-income 
individuals to r$uce ! tax gap1 ) an    
emphasis on ! audit+ & en=cem5t ( tax   
compliance by individuals ) gross income
 ( n less ?an #a1jjj1jjj & ( l>ge       
corporations1 & to mod]nize its         
te*nology 9 ord] to bett] s]ve taxpay]s 
& en=ce ! tax laws1  7#d7 pursu+        
non-fil]s is "o ( ! mo/ effici5t        
en=cem5t /rategies ( ! ,int]nal ,rev5ue 
,s]vice because issu+ non-fil] notices c
 be a co/-effective tool t requires     
little m ?an automat$ notices1  7#e7    
priorities = actions & res\rces to      
improve compliance %\ld be guid$ by !   
relative rev5ue loss f non-compliance1  
7#f7 x %\ld be ! goal ( ! ,int]nal      
,rev5ue ,s]vice t1 by ! t5? tax ye> aft]
 ! effective date ( ?is /atute1 ! net   
tax gap1 z measur$ by ! fraction ( taxes
 t are due t are n report$ & paid1 %\ld 
be r$uc$ by at lea/ "o-?ird1 z comp>$ ) 
! fraction e/imat$ 9 ! mo/ rec5t        
,int]nal ,rev5ue ,s]vice /udy prior to  

enactm5t ( ?is /atute1 &  7#g7 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          
,additional appropriations = ! ,int]nal 
,rev5ue ,s]vice  7a7 ,en=cem5t  7#a7 ,9 
g5]al ,9 addition to o!r am\nts1 !re is 
appropriat$ ! foll[+ am\nts = necess>y  
exp5ses to /r5g!n ! en=cem5t capacity ( 
! ,int]nal ,rev5ue ,s]vice by increas+  
audits annually to meet ! audit goals   
describ$ 9 p>agraph 7#b73  7,a7 ,=      
fiscal ye> #bjbb1 #a1fjj1jjj1jjj4  7,b7 
,= fiscal ye> #bjbc1 #c1bjj1jjj1jjj4    
7,c7 ,= fiscal ye> #bjbd1               
#d1jjj1jjj1jjj4  7,d7 ,= fiscal ye>     
#bjbe1 #f1djj1jjj1jjj4  7,e7 ,= fiscal  
ye> #bjbf1 #f1hjj1jjj1jjj4  7,f7 ,=     
fiscal ye> #bjbg1 #f1hjj1jjj1jjj4  7,g7 
,= fiscal ye> #bjbh1 #f1hjj1jjj1jjj4    
7,h7 ,= fiscal ye> #bjbi1               
#f1hjj1jjj1jjj4  7,i7 ,= fiscal ye>     
#bjcj1 #f1hjj1jjj1jjj4  7,j7 ,= fiscal  
ye> #bjca1 #f1hjj1jjj1jjj4  7#b7 ,goals 

,! goals describ$ 9 ?is subp>agraph are 
to annually audit by #bjbe & ea* ye>    
!reaft]-- 7,a7 9 ! case ( ! income tax  
returns ( individuals--  7i7 #bj p]c5t (
 su* returns report+ an adju/$ gross    
income ( n less ?an #a1jjj1jjj b less   
?an #e1jjj1jjj2  7ii7 #cc p]c5t ( su*   
returns report+ an adju/$ gross income (
 n less ?an #e1jjj1jjj b less ?an       
#aj1jjj1jjj &  7iii7 #ej p]c5t ( su*    
returns report+ an adju/$ gross income (
 n less ?an #aj1jjj1jjj2  7,b7 #ie p]c5t
 ( ! income tax returns ( corporations  
report+ m ?an #bj1jjj1jjj1jjj 9 assets2 
7,c7 #dj p]c5t ( ! e/ate tax returns    
hav+ a gross e/ate valu$ at m ?an       
#aj1jjj1jjj2  7,d7 #a4b p]c5t ( gift tax
 returns2 &  7,e7 #j4bb p]c5t (         
employm5t tax returns fil$ by employ]s )
 respect to ! taxes impos$ "u *apt]s #ba
 or #bb ( ! ,int]nal ,rev5ue ,code (    
#aihf4  7b7 ,taxpay] s]vices ,9 addition
 to o!r am\nts1 !re are appropriat$ !   
foll[+ am\nts to provide taxpay]        
s]vices1 includ+ pre-fil+ assi/ance &   

education1 fil+ & acc\nt s]vices1       
taxpay] advocacy s]vices1 & s]vices     
relat$ to ! report+ requir$ "u section  
#fjej,z ( ! ,int]nal ,rev5ue ,code (    
#aihf 7z add$ by section #d73  7#a7 ,=  
fiscal ye> #bjbb1 #hjj1jjj1jjj4  7#b7 ,=
 fiscal ye> #bjbc1 #hjj1jjj1jjj4  7#c7  
,= fiscal ye> #bjbd1 #hjj1jjj1jjj4  7#d7
 ,= fiscal ye> #bjbe1 #b1jjj1jjj1jjj4   
7#e7 ,= fiscal ye> #bjbf1               
#b1jjj1jjj1jjj4  7#f7 ,= fiscal ye>     
#bjbg1 #b1jjj1jjj1jjj4  7#g7 ,= fiscal  
ye> #bjbh1 #b1jjj1jjj1jjj4  7#h7 ,=     
fiscal ye> #bjbi1 #b1jjj1jjj1jjj4  7#i7 
,= fiscal ye> #bjcj1 #b1jjj1jjj1jjj4    
7#aj7 ,= fiscal ye> #bjca1              
#b1jjj1jjj1jjj4  7c7 ,op]ations support 
,!re are appropriat$ ! foll[+ additional
 am\nts = ! ,dep>tm5t ( !               
,treasury--,int]nal ,rev5ue             
,s]vice--,op]ations ,support acc\nt to  
ov]haul outdat$ te*nology ( ! ,int]nal  
,rev5ue ,s]vice & improve ! capacity ( !
 ,int]nal ,rev5ue ,s]vice to detect     
fraud relat$ to income f a trade or     

bus9ess3 7#a7 ,= fiscal ye> #bjbb1      
#hjj1jjj1jjj4  7#b7 ,= fiscal ye> #bjbc1
 #hjj1jjj1jjj4  7#c7 ,= fiscal ye>      
#bjbd1 #hjj1jjj1jjj4  7#d7 ,= fiscal ye>
 #bjbe1 #hjj1jjj1jjj4  7#e7 ,= fiscal   
ye> #bjbf1 #hjj1jjj1jjj4  7#f7 ,= fiscal
 ye> #bjbg1 #hjj1jjj1jjj4  7#g7 ,=      
fiscal ye> #bjbh1 #hjj1jjj1jjj4  7#h7 ,=
 fiscal ye> #bjbi1 #hjj1jjj1jjj4  7#i7  
,= fiscal ye> #bjcj1 #hjj1jjj1jjj4      
7#aj7 ,= fiscal ye> #bjca1 #hjj1jjj1jjj4
  7d7 ,availability ,ea* additional     
am\nt appropriat$ by ?is section %all   
rema9 available until exp5d$4  #d4      
,returns relat+ to c]ta9 bus9ess        
transactions  7a7 ,9 g5]al ,subp>t ,b ( 
"p ,,iii ( sub*apt] ,a ( *apt] #fa ( !  
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by add+ at ! end ! foll[+ new section3  
#fjej,z4 ,returns relat+ to c]ta9       
transactions  7a7 ,requirem5t ( report+ 
,any cov]$ f9ancial s]vice provid] %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 s]vice      
provid]-- 7,a7 ! "n1 address1 & ,,t9 ( !
 p]son on ^: behalf ! acc\nt is ma9ta9$1
  7,b7 a summ>y report ( total deposits 
receiv$ & total )drawals made 9 su*     
acc\nt1 &  7,c7 su* o!r in=mation z !   
,secret>y may require4  7c7 ,/atem5t ,to
 be furni%$ to taxpay]s ) respect to :om
 in=mation is requir$  7#a7 ,9 g5]al ,e 
cov]$ f9ancial s]vice provid] 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 s]vice provid] 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 s]vice provid] ,= 
purposes ( ?is section1 ! t]m cov]$     
f9ancial s]vice provid] means any       
f9ancial s]vice provid] 7z det]m9$ "u   
regulations provid$ by ! ,secret>y7 :i* 
ma9ta9s an acc\nt on behalf ( ano!r     
p]son4  7e7 ,regulations & guidance ,!  
,secret>y may prescribe su* regulations 
& o!r guidance z may be appropriate or  
necess>y to c>ry out ! purposes ( ?is   
section4  4  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 c]ta9        
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$7 ! foll[+ new subp>agraph3   
7,,ll7 section #fjej,z 7relat+ to       
in=mation ) respect to c]ta9            
transactions74 4  7c7 ,cl]ical am5dm5t  
,! table ( sections = subp>t ,b ( "p    
,,iii ( sub*apt] ,a ( *apt] #fa ( su*   
,code is am5d$ by add+ at ! end ! foll[+
 new item3  ,sec4 #fjej,z4 ,returns     
relat+ to c]ta9 transactions4  4  7d7   
,effective date ,! am5dm5ts made by ?is 
section %all apply to cal5d> ye>s beg9n+
 aft] ,decemb] #ca1 #bjba4  #e4 ,reports
 to ,congress ,n lat] ?an #a ye> aft] ! 
date ( ! enactm5t ( ?is ,act & e #b ye>s
 !reaft]1 ! ,commission] ( ! ,int]nal   
,rev5ue ,s]vice1 aft] consultation ) !  

,comptroll] ,g5]al1 %all submit to      
,congress a report conta9+--  7#a7 a    
compreh5sive description (-- 7,a7 a plan
 to--  7i7 %ift m ( ! audit+ & en=cem5t 
assets ( ! ,int]nal ,rev5ue ,s]vice t[>d
 high-income tax fil]s1 &  7ii7 recruit 
& reta9 auditors ) ! skills ess5tial to 
audit high-income individuals1 &  7,b7 !
 progress made 9 implem5t+ su* plan1    
7#b7 an e/imate ( rev5ue loss f (f%ore  
tax evasion1 &  7#c7 in=mation ) respect
 to rev5ue loss due to su* tax evasion1 
organiz$ by gr\ps ( taxpay]s arrang$ by 
! true income level ( su* taxpay]s1 z   
det]m9$ by ! ,secret>y4  #f4 ,,irs      
,en=cem5t 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+ #dj p]c5t = #cj p]c5t 9       
p>agraph 7#b77;,b7 !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+ #dj p]c5t = #cj p]c5t 9       
p>agraph 7#b77;,b7 !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+ #dj p]c5t = #cj p]c5t 9       
p>agraph 7#b77;,b7 !re(4  4  7c7        
,effective date ,! am5dm5t made by ?is  
section %all apply to returns on ! due  
date :i* 7det]m9$ )\t reg>d to          
ext5sions7 is aft] ,decemb] #ca1 #bjbb4