,i  #aaith ,,congress  #b;d ,session    
,h4 ,r4 #idha  ,,in ,,the ,,house ,,of  
,,representatives  ,june #be1 #bjbf,ms4 
,ross 7for herself1 ,mr4 ,panetta1 and  
,ms4 ,de,lauro7 introduced the following
 bill2 which was referred to the        
,committee on ,ways and ,means  ,a      
,,bill  ,to amend the ,internal ,revenue
 ,code of #aihf to improve responses by 
the ,internal ,revenue ,service to      
claims for refund1 and for other        
purposes4  #a4 ,short title  ,this ,act 
may be cited as the ,restoring          
,efficiency in ,taxpayer ,updates1      
,refunds1 and ,notifications ,act or the
 ,,return ,act4  #b4 ,responses to      
claims for refund required  7a7 ,in     
general ,subsection 7l7 of section #fdjb
 of the ,internal ,revenue ,code of     
#aihf is amended to read as follows3    
7l7 ,explanation of reason for refund   
disallowance  7#a7 ,in general ,not     
later than the applicable date1 the     
,secretary shall review any claim for   
refund1 make a determination with       

respect to such claim1 and1 in the case 
of a disallowance of such claim 7in     
whole or in part71 provide the taxpayer 
with a detailed written explanation for 
such disallowance1 which shall--  7,a7  
be mailed to the last known address of  
the taxpayer1 and  7,b7 in the case of  
any taxpayer entitled to an appeal of   
such determination1 include instructions
 for appealing such disallowance to the 
,internal ,revenue ,service ,independent
 ,office of ,appeals4  7#b7 ,failure to 
make timely determination  7,a7 ,in     
general ,in the case of any claim for   
refund for which the ,secretary fails to
 satisfy the requirements of paragraph  
7#a7 by the applicable date1 for        
purposes of determining interest on any 
overpayment for any period subsequent to
 such date1 the overpayment rate 7as    
established under section #ffba7;a77#a77
 shall be increased by #a percentage    
point4  7,b7 ,limitation ,with respect  
to any claim for refund described in    
subparagraph 7,a71 the amount of any    

increase in interest on any overpayment 
pursuant to such subparagraph shall not 
exceed #ejj4  7,c7 ,adjustment for      
inflation  7i7 ,in general ,in the case 
of any claim for refund filed during any
 calendar year beginning after #bjbf1   
the #ejj amount in subparagraph 7,b7    
shall be increased by an amount equal   
to-- 7,i7 such dollar amount1 multiplied
 by  7,,ii7 the cost-of-living          
adjustment determined under section     
#a7;f77#c7 for the calendar year1       
determined by substituting calendar year
 #bjbd for calendar year #bjaf in       
subparagraph 7,a77ii7 thereof4  7ii7    
,rounding ,if any amount determined     
under clause 7i7 is not a multiple of   
#ej1 such amount shall be rounded to the
 nearest multiple of #ej4  7#c7         
,frivolous claims  7,a7 ,in general ,in 
the case of any frivolous claim-- 7i7   
paragraph 7#a7 shall not apply1 and     
7ii7 not later than the applicable date1
 written notification of the denial of  
such claim shall be mailed to the last  

known address of the taxpayer4  7,b7    
,definition ,for purposes of this       
paragraph1 the term frivolous claim     
means a claim for refund which is based 
on a position which--  7i7 a ,federal   
court has determined to be frivolous1   
and  7ii7 the ,secretary has identified 
as frivolous for purposes of subsection 
7c7 of section #fgjb4  7#d7 ,applicable 
date ,for purposes of this subsection1  
the term applicable date means1 with    
respect to any claim for refund-- 7,a7  
the date which is #ab months after the  
date of receipt of such claim by the    
,secretary1 or  7,b7 such other date as 
is agreed to by the ,secretary and the  
taxpayer4  4  7b7 ,effective date ,the  
amendment made by this section shall    
apply to any claim for refund received  
after the date which is #ab months after
 the date of enactment of this ,act4