,,ii  #aai? ,,congress  #a/ ,session    
,s4 #achf  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,april #i1 #bjbe,mr4   
,cornyn introduc$ ! foll[+ bill2 :i* 0  
read twice & ref]r$ to ! ,committee on  
,f9ance  ,a ,,bill  ,to provide a       
taxpay] bill ( rights = small bus9esses4
  #a4 ,%ort title2 table ( cont5ts  7a7 
,%ort title ,?is ,act may be cit$ z !   
,small ,bus9ess ,taxpay] ,bill ( ,rights
 ,act ( #bjbe4  7b7 ,table ( cont5ts ,! 
table ( cont5ts ( ?is ,act is z foll[s3 
,sec4 #a4 ,%ort title2 table (          
cont5ts4,sec4 #b4 ,modification ( /&>ds 
= aw>d+ ( co/s & c]ta9 fees4,sec4 #c4   
,civil damages all[$ = reckless or      
int5tional disreg>d ( int]nal rev5ue    
laws4,sec4 #d4 ,modifications relat+ to 
c]ta9 (f5ses by (fic]s & employees 9    
connection ) rev5ue laws4,sec4 #e4      
,modifications relat+ to civil damages =
 unau?oriz$ inspection or disclosure (  
returns & return in=mation4,sec4 #f4    
,ban on ex p>te discussions4,sec4 #g4   
,"r to indep5d5t conf]5ce4,sec4 #h4     

,alt]native dispute resolution          
proc$ures4,sec4 #i4 ,increase 9 monet>y 
p5alties = c]ta9 unau?oriz$ disclosures 
( in=mation4,sec4 #aj4 ,ban on rais+ new
 issues on appeal4,sec4 #aa4 ,limitation
 on en=cem5t ( li5s aga9/ pr9cipal      
resid5ces4,sec4 #ab4 ,additional        
provisions relat+ to m&atory t]m9ation =
 misconduct4,sec4 #ac4 ,review by !     
,treasury ,inspector ,g5]al = ,tax      
,adm9i/ration4,sec4 #ad4 ,d$uction =    
exp5ses relat+ to c]ta9 audits4,sec4    
#ae4 ,t]m limit = ,national ,taxpay]    
,advocate4,sec4 #af4 ,release ( ,,irs   
levy due to economic h>d%ip = bus9ess   
taxpay]s4,sec4 #ag4 ,repeal ( p>tial    
paym5t requirem5t on submissions (      
(f]s-9-compromise4  #b4 ,modification ( 
/&>ds = aw>d+ ( co/s & c]ta9 fees  7a7  
,small bus9esses eligible )\t reg>d to  
net wor? ,subp>agraph 7,d7 ( section    
#gdcj7;c77#d7 ( ! ,int]nal ,rev5ue ,code
 ( #aihf is am5d$ by /rik+ & at ! end ( 
clause 7i77,,ii71 by /rik+ ! p]iod at ! 
end ( clause 7ii7 & ins]t+ 1 &1 & by    

add+ at ! end ! foll[+ new clause3      
7iii7 9 ! case ( an eligible small      
bus9ess1 ! net wor? limitation 9 clause 
7ii7 ( su* section %all n apply4  4  7b7
 ,eligible small bus9ess ,p>agraph 7#d7 
( section #gdcj7;c7 ( ! ,int]nal ,rev5ue
 ,code ( #aihf is am5d$ by add+ at ! end
 ! foll[+ new subp>agraph3  7,f7        
,eligible small bus9ess  7i7 ,9 g5]al ,=
 purposes ( subp>agraph 7,d77iii71 ! t]m
 eligible small bus9ess means1 ) respect
 to any proce$+ comm5c$ 9 a taxable     
ye>-- 7,i7 a corporation ! /ock ( :i* is
 n publicly trad$1  7,,ii7 a p>tn]%ip1  
or  7,,iii7 a sole proprietor%ip1  if ! 
av]age annual gross receipts ( su*      
corporation1 p>tn]%ip1 or sole          
proprietor%ip = ! #c-taxable-ye> p]iod  
prec$+ su* taxable ye> does n exce$     
#ej1jjj1jjj4 ,= purposes ( apply+ ! te/ 
"u ! prec$+ s5t5ce1 rules simil> to !   
rules ( p>agraphs 7#b7 & 7#c7 ( section 
#ddh7;c7 %all apply4  7ii7 ,adju/m5t =  
inflation ,9 ! case ( any cal5d> ye>    
aft] #bjbe1 ! #ej1jjj1jjj am\nt 9 clause

 7i7 %all be increas$ by an am\nt equal 
to-- 7,i7 su* doll> am\nt1 multipli$ by 
7,,ii7 ! co/-(-liv+ adju/m5t det]m9$ "u 
section #a7;f77#c7 = su* cal5d> ye>1    
det]m9$ by sub/itut+ cal5d> ye> #bjbd = 
cal5d> ye> #bjaf 9 subp>agraph 7,a77ii7 
!re(4  ,if any am\nt z increas$ "u !    
prec$+ s5t5ce is n a multiple ( #ejj1   
su* am\nt %all be r\nd$ to ! next l[e/  
multiple ( #ejj4  4  7c7 ,effective date
 ,! am5dm5ts made by ?is section %all   
apply to proce$+s comm5c$ aft] ! date ( 
! enactm5t ( ?is ,act4  #c4 ,civil      
damages all[$ = reckless or int5tional  
disreg>d ( int]nal rev5ue laws  7a7     
,increase 9 am\nt ( damages  7#a7 ,9    
g5]al ,section #gdcc7;b7 ( ! ,int]nal   
,rev5ue ,code ( #aihf is am5d$ by /rik+ 
#a1jjj1jjj 7#ajj1jjj1 9 ! case (        
neglig5ce7 & ins]t+ #e1jjj1jjj          
7#ejj1jjj1 9 ! case ( neglig5ce74  7#b7 
,adju/m5t = inflation ,section #gdcc (  
su* ,code is am5d$ by add+ at ! end !   
foll[+ new subsection3  7f7 ,adju/m5t = 
inflation ,9 ! case ( any cal5d> ye>    

aft] #bjbe1 ! #e1jjj1jjj & #ejj1jjj     
am\nts 9 subsection 7b7 %all ea* 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 = su* cal5d> ye>1 det]m9$ by 
sub/itut+ cal5d> ye> #bjbc = cal5d> ye> 
#bjaf 9 subp>agraph 7,a77ii7 !re(4  ,if 
any am\nt z increas$ "u ! prec$+ s5t5ce 
is n a multiple ( #ejj1 su* am\nt %all  
be r\nd$ to ! next l[e/ multiple ( #ejj4
  4  7b7 ,ext5sion ( "t ,to br+ action  
,section #gdcc7;d77#c7 ( ! ,int]nal     
,rev5ue ,code ( #aihf is am5d$ by /rik+ 
#b ye>s & ins]t+ #e ye>s4  7c7          
,effective date ,! am5dm5ts made by ?is 
section %all apply to actions (         
employees ( ! ,int]nal ,rev5ue ,s]vice  
aft] ! date ( ! enactm5t ( ?is ,act4    
#d4 ,modifications relat+ to c]ta9      
(f5ses by (fic]s & employees 9          
connection ) rev5ue laws  7a7 ,increase 
9 p5alty ,section #gbad ( ! ,int]nal    
,rev5ue ,code ( #aihf is am5d$-- 7#a7 by
 /rik+ #aj1jjj 9 subsection 7a7 & ins]t+

 #be1jjj1 &  7#b7 by /rik+ #e1jjj 9     
subsection 7b7 & ins]t+ #aj1jjj4  7b7   
,adju/m5t = inflation ,section #gbad ( !
 ,int]nal ,rev5ue ,code ( #aihf1 z am5d$
 by subsection 7a71 is am5d$ by         
r$esignat+ subsection 7c7 z subsection  
7d7 & by ins]t+ aft] subsection 7b7 !   
foll[+ new subsection3  7c7 ,adju/m5t = 
inflation ,9 ! case ( any cal5d> ye>    
aft] #bjbe1 ! #be1jjj am\nt 9 subsection
 7a7 & ! #aj1jjj am\nt 9 subsection 7b7 
%all ea* be increas$ 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 = su* cal5d> ye>1    
det]m9$ by sub/itut+ cal5d> ye> #bjbd = 
cal5d> ye> #bjaf 9 subp>agraph 7,a77ii7 
!re(4  ,if any am\nt z increas$ "u !    
prec$+ s5t5ce is n a multiple ( #ajj1   
su* am\nt %all be r\nd$ to ! next l[e/  
multiple ( #ajj4  4  7c7 ,effective date
 ,! am5dm5ts made by ?is section %all   
take effect on ! date ( ! enactm5t ( ?is
 ,act4  #e4 ,modifications relat+ to    
civil damages = unau?oriz$ inspection or

 disclosure ( returns & return in=mation
  7a7 ,increase 9 am\nt ( damages       
,subp>agraph 7,a7 ( section             
#gdca7;c77#a7 ( ! ,int]nal ,rev5ue ,code
 ( #aihf is am5d$ by /rik+ #a1jjj &     
ins]t+ #aj1jjj4  7b7 ,adju/m5t =        
inflation ,section #gdca ( ! ,int]nal   
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+ new subsection3  7i7  
,adju/m5t = inflation ,9 ! case ( any   
cal5d> ye> aft] #bjbe1 ! #aj1jjj am\nt 9
 subsection 7c77#a77;,a7 %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 = su* cal5d> ye>1 det]m9$ by 
sub/itut+ cal5d> ye> #bjbd = cal5d> ye> 
#bjaf 9 subp>agraph 7,a77ii7 !re(4  ,if 
any am\nt z increas$ "u ! prec$+ s5t5ce 
is n a multiple ( #ajj1 su* am\nt %all  
be r\nd$ to ! next l[e/ multiple ( #ajj4
  4  7c7 ,p]iod = br++ action           
,subsection 7d7 ( section #gdca ( !     
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by /rik+ #b ye>s & ins]t+ #e ye>s4  7d7 

,effective date ,! am5dm5t made by ?is  
section %all apply to inspections &     
disclosure occurr+ on & aft] ! date ( ! 
enactm5t ( ?is ,act4  #f4 ,ban on ex    
p>te discussions  7a7 ,9 g5]al ,not)/&+ 
section #ajja7;a77#d7 ( ! ,int]nal      
,rev5ue ,s]vice ,re/ructur+ & ,re=m ,act
 ( #aiih1 ! ,int]nal ,rev5ue ,s]vice    
%all prohibit any ex p>te communications
 betwe5 (fic]s 9 ! ,int]nal ,rev5ue     
,s]vice ,indep5d5t ,(fice ( ,appeals &  
o!r ,int]nal ,rev5ue ,s]vice employees )
 respect to any matt] p5d+ be=e su*     
(fic]s4  7b7 ,t]m9ation ( employm5t =   
misconduct ,subject to subsection 7c71 !
 ,commission] ( ,int]nal ,rev5ue %all   
t]m9ate ! employm5t ( any employee ( !  
,int]nal ,rev5ue ,s]vice if !re is a    
f9al adm9i/rative or judicial           
det]m9ation t su* employee committ$ any 
act or omission prohibit$ "u subsection 
7a7 9 ! p]=mance ( ! employee's (ficial 
duties4 ,su* t]m9ation %all be a removal
 = cause on *>ges ( misconduct4  7c7    
,det]m9ation ( commission]  7#a7 ,9     

g5]al ,! ,commission] ( ,int]nal ,rev5ue
 may take a p]sonnel action o!r ?an     
t]m9ation = an act prohibit$ "u         
subsection 7a74  7#b7 ,discretion ,!    
ex]cise ( au?ority "u p>agraph 7#a7 %all
 be at ! sole discretion ( !            
,commission] ( ,int]nal ,rev5ue & may n 
be delegat$ to any o!r (fic]4 ,at ! sole
 discretion ( ! ,commission] ( ,int]nal 
,rev5ue1 su* ,commission] may e/abli% a 
proc$ure :i* w be us$ to det]m9e :e!r an
 individual %\ld be ref]r$ to !         
,commission] ( ,int]nal ,rev5ue = a     
det]m9ation by ! ,commission] "u        
p>agraph 7#a74  7#c7 ,no appeal ,any    
det]m9ation ( ! ,commission] ( ,int]nal 
,rev5ue "u ?is subsection may n be      
appeal$ 9 any adm9i/rative or judicial  
proce$+4  7d7 ,,tigta report+ (         
t]m9ation or mitigation ,section        
#ghjc7;d77#a77;,e7 ( ! ,int]nal ,rev5ue 
,code ( #aihf is am5d$ by ins]t+ or     
section #f ( ! ,small ,bus9ess ,taxpay] 
,bill ( ,rights ,act ( #bjbe aft] #aiih4
  #g4 ,"r to indep5d5t conf]5ce ,section

 #ajja ( ! ,int]nal ,rev5ue ,s]vice     
,re/ructur+ & ,re=m ,act ( #aiih is     
am5d$ by r$esignat+ subsection 7c7 z    
subsection 7d7 & by ins]t+ aft]         
subsection 7b7 ! foll[+ new subsection3 
7c7 ,"r to indep5d5t conf]5ce ,"u !     
organization plan ( ! ,int]nal ,rev5ue  
,s]vice1 a taxpay] %all h ! "r to a     
conf]5ce ) ! ,int]nal ,rev5ue ,s]vice   
,indep5d5t ,(fice ( ,appeals :i* does n 
include p]sonnel f ! ,(fice ( ,*ief     
,c\nsel = ! ,int]nal ,rev5ue ,s]vice or 
! compliance functions ( ! ,int]nal     
,rev5ue ,s]vice unless ! taxpay]        
specifically cons5ts to ! p>ticipation (
 su* p]sonnel4  4  #h4 ,alt]native      
dispute resolution proc$ures  7a7 ,9    
g5]al ,section #gabc ( ! ,int]nal       
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+ new subsection3  7d7  
,availability ( dispute resolutions     
7#a7 ,9 g5]al ,! proc$ures prescrib$ "u 
subsection 7b77#a7 & ! pilot program    
e/abli%$ "u subsection 7b77#b7 %all     
provide t a taxpay] may reque/ m$iation 

or arbitration 9 any case unless !      
,secret>y has specifically exclud$ !    
type ( issue involv$ 9 su* case or !    
class ( cases to :i* su* case belongs z 
n appropriate = resolution "u su*       
subsection4 ,! ,secret>y %all make any  
det]m9ation t excludes a type ( issue or
 a class ( cases public )9 #e work+ days
 & provide an explanation = ea*         
det]m9ation4  7#b7 ,indep5d5t m$iators  
7,a7 ,9 g5]al ,! proc$ures prescrib$ "u 
subsection 7b77#a7 %all provide !       
taxpay] an opportunity to elect to h !  
m$iation conduct$ by an indep5d5t1      
neutral individual n employ$ by !       
,int]nal ,rev5ue ,s]vice ,indep5d5t     
,(fice ( ,appeals4  7,b7 ,co/ &         
selection  7i7 ,9 g5]al ,any taxpay]    
mak+ an election "u subp>agraph 7,a7    
%all be requir$-- 7,i7 to %>e ! co/s (  
su* indep5d5t m$iator equally ) !       
,int]nal ,rev5ue ,s]vice ,indep5d5t     
,(fice ( ,appeals1 &  7,,ii7 to limit ! 
selection ( ! m$iator to a ro/] (       
recogniz$ national or local neutral     

m$iators4  7ii7 ,exception ,clause      
7i77,i7 %all n apply to any taxpay] :o  
is an individual or :o 0 a small bus9ess
 9 ! prec$+ cal5d> ye> if su* taxpay] _h
 an adju/$ gross income t did n exce$   
#bej p]c5t ( ! pov]ty level1 z det]m9$ 9
 accordance ) crit]ia e/abli%$ by !     
,director ( ! ,(fice ( ,managem5t &     
,budget1 9 ! taxable ye> prec$+ !       
reque/4  7iii7 ,small bus9ess ,=        
purposes ( clause 7ii71 ! t]m small     
bus9ess has ! mean+ giv5 su* t]m "u     
section #da7;b77#c77;,d77iii74  7#c7    
,availability ( process ,! proc$ures    
prescrib$ "u subsection 7b77#a7 & !     
pilot program e/abli%$ "u subsection    
7b77#b7 %all provide ! opportunity to   
elect m$iation or arbitration at ! "t :5
 ! case is fir/ fil$ ) ! ,int]nal       
,rev5ue ,s]vice ,indep5d5t ,(fice (     
,appeals & at any "t be=e delib]ations 9
 ! appeal comm5ce4  4  7b7 ,effective   
date ,! am5dm5t made by ?is section %all
 take effect on ! date ( ! enactm5t (   
?is ,act4  #i4 ,increase 9 monet>y      

p5alties = c]ta9 unau?oriz$ disclosures 
( in=mation  7a7 ,9 g5]al ,p>agraphs    
7#a71 7#b71 7#c71 & 7#d7 ( section      
#gbac7;a7 ( ! ,int]nal ,rev5ue ,code (  
#aihf are ea* am5d$ by /rik+ #e1jjj &   
ins]t+ #aj1jjj4  7b7 ,adju/m5t =        
inflation ,subsection 7a7 ( section     
#gbac ( ! ,int]nal ,rev5ue ,code ( #aihf
 is am5d$ by add+ at ! end ! foll[+ new 
p>agraph3  7#f7 ,adju/m5t = inflation ,9
 ! case ( any cal5d> ye> aft] #bjbe1 !  
#aj1jjj am\nts 9 p>agraphs 7#a71 7#b71  
7#c71 & 7#d7 %all ea* 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 = su*    
cal5d> ye>1 det]m9$ by sub/itut+ cal5d> 
ye> #bjbc = cal5d> ye> #bjaf 9          
subp>agraph 7,a77ii7 !re(4  ,if any     
am\nt z increas$ "u ! prec$+ s5t5ce is n
 a multiple ( #ajj1 su* am\nt %all be   
r\nd$ to ! next l[e/ multiple ( #ajj4  4
  7c7 ,effective date ,! am5dm5ts made  
by ?is section %all apply to disclosures
 made aft] ! date ( ! enactm5t ( ?is    

,act4  #aj4 ,ban on rais+ new issues on 
appeal  7a7 ,9 g5]al ,*apt] #gg ( !     
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by add+ at ! end ! foll[+ new section3  
#geca4 ,prohibition on ,int]nal ,rev5ue 
,s]vice rais+ new issues 9 an int]nal   
appeal  7a7 ,9 g5]al ,9 review+ an      
appeal ( any det]m9ation initially made 
by ! ,int]nal ,rev5ue ,s]vice1 !        
,int]nal ,rev5ue ,s]vice ,indep5d5t     
,(fice ( ,appeals may n consid] or      
decide any issue t is n )9 ! scope ( !  
initial det]m9ation4  7b7 ,c]ta9 issues 
deem$ outside ( scope ( det]m9ation ,=  
purposes ( subsection 7a71 ! foll[+     
matt]s %all be consid]$ to be n )9 !    
scope ( a det]m9ation3 7#a7 ,any issue t
 0 n rais$ 9 a notice ( defici5cy or an 
exam9]'s report :i* is ! subject ( !    
appeal4  7#b7 ,any defici5cy 9 tax :i* 0
 n includ$ 9 ! initial det]m9ation4     
7#c7 ,any !ory or ju/ification = a tax  
defici5cy :i* 0 n consid]$ 9 ! initial  
det]m9ation4  7c7 ,no inf]5ce ) respect 
to issues rais$ by taxpay]s ,no?+ 9 ?is 

section %all be con/ru$ to provide any  
limitation 9 addition to any limitations
 9 effect on ! date ( ! enactm5t ( ?is  
section on ! "r ( a taxpay] to raise an 
issue1 !ory1 or ju/ification on an      
appeal f a det]m9ation initially made by
 ! ,int]nal ,rev5ue ,s]vice t 0 n )9 !  
scope ( ! initial det]m9ation4  4  7b7  
,cl]ical am5dm5t ,! table ( sections =  
*apt] #gg ( ! ,int]nal ,rev5ue ,code (  
#aihf is am5d$ by add+ at ! end ! foll[+
 new item3  ,sec4 #geca4 ,prohibition on
 ,int]nal ,rev5ue ,s]vice rais+ new     
issues 9 an int]nal appeal4  4  7c7     
,effective date ,! am5dm5ts made by ?is 
section %all apply to matt]s fil$ or    
p5d+ ) ! ,int]nal ,rev5ue ,s]vice       
,indep5d5t ,(fice ( ,appeals on or aft] 
! date ( ! enactm5t ( ?is ,act4  #aa4   
,limitation on en=cem5t ( li5s aga9/    
pr9cipal resid5ces  7a7 ,9 g5]al        
,section #gdjc7;a7 ( ! ,int]nal ,rev5ue 
,code ( #aihf is am5d$-- 7#a7 by /rik+  
,9 any case & ins]t+ ! foll[+3  7#a7 ,9 
g5]al ,9 any case  2 &  7#b7 by add+ at 

! end ! foll[+ new p>agraph3  7#b7      
,limitation ) respect to pr9cipal       
resid5ce  7,a7 ,9 g5]al ,p>agraph 7#a7  
%all n apply to any prop]ty us$ z !     
pr9cipal resid5ce ( ! taxpay] 7)9 !     
mean+ ( section #aba7 unless ! ,secret>y
 ( ! ,treasury makes a writt5           
det]m9ation t-- 7i7 all o!r prop]ty ( ! 
taxpay]1 if sold1 is insuffici5t to pay 
! tax or dis*>ge ! liability1 &  7ii7   
su* action w n create an economic h>d%ip
 = ! taxpay]4  7,b7 ,delegation ,=      
purposes ( ?is p>agraph1 ! ,secret>y ( !
 ,treasury may n delegate any           
responsibilities "u subp>agraph 7,a7 to 
any p]son o!r ?an-- 7i7 ! ,commission] (
 ,int]nal ,rev5ue1 or  7ii7 a di/rict   
director or assi/ant di/rict director ( 
! ,int]nal ,rev5ue ,s]vice4  4  7b7     
,effective date ,! am5dm5ts made by ?is 
section %all apply to actions fil$ aft] 
! date ( ! enactm5t ( ?is ,act4  #ab4   
,additional provisions relat+ to m&atory
 t]m9ation = misconduct  7a7 ,t]m9ation 
( unemploym5t = inappropriate review (  

tax-,exempt /atus ,section #abjc7;b7 ( !
 ,int]nal ,rev5ue ,s]vice ,re/ructur+ & 
,re=m ,act ( #aiih 7#bf ,u4,s4,c4 #ghjd 
note7 is am5d$ by /rik+ & at ! end (    
p>agraph 7#i71 by /rik+ ! p]iod at ! end
 ( p>agraph 7#aj7 & ins]t+ 2 &1 & by    
add+ at ! end ! foll[+ new p>agraph3    
7#aa7 9 ! case ( any review ( an        
application = tax-exempt /atus by an    
organization describ$ 9 section #eja7;c7
 ( ! ,int]nal ,rev5ue ,code ( #aihf1    
develop+ or us+ any me?odology t applies
 disproportionate scrut9y to any        
applicant bas$ on ! ideology express$ 9 
! "n or purpose ( ! organization4  4    
7b7 ,m&atory unpaid adm9i/rative leave =
 misconduct ,p>agraph 7#a7 ( section    
#abjc7;c7 ( ! ,int]nal ,rev5ue ,s]vice  
,re/ructur+ & ,re=m ,act ( #aiih 7#bf   
,u4,s4,c4 #ghjd note7 is am5d$ by add+  
at ! end ! foll[+ new s5t5ce3 ,not)/&+ !
 prec$+ s5t5ce1 if ! ,commission] (     
,int]nal ,rev5ue takes a p]sonnel action
 o!r ?an t]m9ation = an act or omission 
describ$ 9 subsection 7b71 !            

,commission] %all place ! employee on   
unpaid adm9i/rative leave = a p]iod ( n 
less ?an #ij days44  7c7 ,limitation on 
alt]native puni%m5t ,p>agraph 7#a7 (    
section #abjc7;c7 ( ! ,int]nal ,rev5ue  
,s]vice ,re/ructur+ & ,re=m ,act ( #aiih
 7#bf ,u4,s4,c4 #ghjd note7 is am5d$ by 
/rik+ ,! ,commission] & ins]t+ ,except 9
 ! case ( an act or omission describ$ 9 
subsection 7b77#c77;,a71 ! ,commission]4
  #ac4 ,review by ! ,treasury ,inspector
 ,g5]al = ,tax ,adm9i/ration  7a7       
,review ,subsection 7k77#a7 ( section   
#dab ( title #e1 ,unit$ ,/ates ,code1 is
 am5d$-- 7#a7 9 subp>agraph 7,c71 by    
/rik+ & at ! end2  7#b7 by r$esignat+   
subp>agraph 7,d7 z subp>agraph 7,e72    
7#c7 by ins]t+ aft] subp>agraph 7,c7 !  
foll[+ new subp>agraph3  7,d7 %all-- 7i7
 review any crit]ia employ$ by !        
,int]nal ,rev5ue ,s]vice to select tax  
returns 7includ+ applications =         
recognition ( tax-exempt /atus7 =       
exam9ation or audit1 assessm5t or       
collection ( defici5cies1 crim9al       

inve/igation or ref]ral1 refunds =      
am\nts paid1 or any height5$ scrut9y or 
review 9 ord] to det]m9e :e!r ! crit]ia 
discrim9ates aga9/ taxpay]s on ! basis (
 race1 religion1 or political ideology2 
&  7ii7 consult ) ! ,int]nal ,rev5ue    
,s]vice on recomm5d$ am5dm5ts to su*    
crit]ia 9 ord] to elim9ate any          
discrim9ation id5tifi$ pursuant to !    
review describ$ 9 clause 7i72 &  2 &    
7#d7 9 subp>agraph 7,e71 z s r$esignat$1
 by /rik+ & 7,c7 & ins]t+ 7,c71 & 7,d74 
7b7 ,semiannual ,report ,subsection 7g7 
( section #dab ( title #e1 ,unit$ ,/ates
 ,code1 is am5d$ by add+ at ! end !     
foll[+ new p>agraph3  7#c7 ,semiannual  
reports ,any semiannual report made by !
 ,treasury ,inspector ,g5]al = ,tax     
,adm9i/ration t is requir$ pursuant to  
section #dje7;b7 %all include-- 7,a7 a  
/atem5t affirm+ t ! ,treasury ,inspector
 ,g5]al = ,tax ,adm9i/ration has review$
 ! crit]ia describ$ 9 subsection        
7k77#a77;,d7 & consult$ ) ! ,int]nal    
,rev5ue ,s]vice reg>d+ su* crit]ia2 &   

7,b7 a description & explanation ( any  
su* crit]ia t 0 id5tifi$ z discrim9atory
 by ! ,treasury ,inspector ,g5]al = ,tax
 ,adm9i/ration4  4  #ad4 ,d$uction =    
exp5ses relat+ to c]ta9 audits  7a7 ,9  
g5]al ,subsection 7a7 ( section #fb ( ! 
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by ins]t+ aft] p>agraph 7#ba7 ! foll[+  
new p>agraph3  7#bb7 ,exp5ses relat+ to 
c]ta9 audits ,! d$uction all[$ by       
section #bbd4  4  7b7 ,d$uction =       
exp5ses relat+ to c]ta9 audits ,"p ,,vii
 ( sub*apt] ,b ( *apt] #a ( ! ,int]nal  
,rev5ue ,code ( #aihf is am5d$ by       
r$esignat+ section #bbd z section #bbe &
 by ins]t+ aft] section #bbc ! foll[+   
new section3  #bbd4 ,exp5ses relat+ to  
c]ta9 audits  7a7 ,all[ance ( d$uction  
,9 ! case ( an individual1 !re %all be  
all[$ z a d$uction = ! taxable ye> an   
am\nt equal to s mu* ( ! qualifi$ ,,nrp 
exp5ses paid or incurr$ dur+ ! taxable  
ye> z does n exce$ #e1jjj4  7b7         
,qualifi$ ,,nrp exp5ses ,= purposes (   
?is section1 ! t]m qualifi$ ,,nrp       

exp5ses means am\nts :i* b = subsection 
7c7 w\ld be all[$ z a d$uction "u       
section #afb or #bab7c7 9 connection )  
an audit ( ! taxpay]'s return ( ! tax   
impos$ by ?is *apt] = any taxable ye> "u
 ! ,national ,rese>* ,program1 b only if
 su* audit results 9 no increase 9 ! tax
 liability ( ! taxpay] = su* taxable    
ye>4  7c7 ,d5ial ( d\ble b5efit ,no     
d$uction %all be all[$ "u any o!r       
provision ( ?is *apt] = any am\nt = :i* 
a d$uction is all[$ "u ?is section4  4  
7c7 ,cl]ical am5dm5t ,! table ( sections
 = "p ,,vii ( sub*apt] ,b ( *apt] #a ( !
 ,int]nal ,rev5ue ,code ( #aihf is am5d$
 by /rik+ ! item relat+ to section #bbd 
& by ins]t+ aft] ! item relat+ to       
section #bbc ! foll[+ new items3  ,sec4 
#bbd4 ,exp5ses relat+ to c]ta9          
audits4,sec4 #bbe4 ,cross ref]5ce4  4   
7d7 ,effective date ,! am5dm5ts made by 
?is section %all apply to taxable ye>s  
beg9n+ aft] ! date ( ! enactm5t ( ?is   
,act4  #ae4 ,t]m limit = ,national      
,taxpay] ,advocate  7a7 ,9 g5]al        

,subp>agraph 7,b7 ( section             
#ghjc7;c77#a7 ( ! ,int]nal ,rev5ue ,code
 ( #aihf is am5d$ by add+ at ! end !    
foll[+ new clause3  7v7 ,t]m ,! t]m ( ! 
,national ,taxpay] ,advocate %all be a  
#aj-ye> t]m1 beg9n+ ) a t]m to comm5ce  
on ! date :i* is #ah mon?s aft] ! date (
 ! enactm5t ( ! ,small ,bus9ess ,taxpay]
 ,bill ( ,rights ,act ( #bjbe4 ,ea*     
subsequ5t t]m %all beg9 on ! day aft] ! 
date on :i* ! previ\s t]m expires4 ,!   
,national ,taxpay] ,advocate may be     
appo9t$ to s]ve m ?an #a t]m4  4  7b7   
,effective date ,! t]m ( any individual 
s]v+ z ! ,national ,taxpay] ,advocate "u
 section #ghjc7;c7 ( ! ,int]nal ,rev5ue 
,code ( #aihf z ( ! date ( ! enactm5t ( 
?is ,act %all end z ( ! day be=e ! date 
:i* is #ah mon?s aft] su* date (        
enactm5t1 unless su* individual is      
reappo9t$ z ! ,national ,taxpay]        
,advocate = a subsequ5t t]m pursuant to 
section #ghjc7;c77#a77;,b77v7 ( su*     
,code4  #af4 ,release ( ,,irs levy due  
to economic h>d%ip = bus9ess taxpay]s   

7a7 ,9 g5]al ,subp>agraph 7,d7 ( section
 #fcdc7;a77#a7 ( ! ,int]nal ,rev5ue     
,code ( #aihf is am5d$ by /rik+ or &    
ins]t+ includ+ ! f9ancial condition ( ! 
taxpay]'s viable trade or bus9ess1 or4  
7b7 ,det]m9ation ( economic h>d%ip      
,subsection 7a7 ( section #fcdc ( !     
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by add+ at ! end ! foll[+ new p>agraph3 
7#d7 ,det]m9ation ( economic h>d%ip to  
bus9ess taxpay] ,9 det]m9+ :e!r to      
release any levy "u p>agraph 7#a77;,d71 
! ,secret>y %all consid]-- 7,a7 !       
economic viability ( ! bus9ess1  7,b7 ! 
nature & ext5t ( ! h>d%ip creat$ by !   
levy 7includ+ :e!r ! taxpay] has ex]cis$
 ord9>y bus9ess c>e & prud5ce71 &  7,c7 
! pot5tial h>m to individuals if !      
bus9ess is liquidat$4  4  7c7 ,effective
 date ,! am5dm5ts made by ?is section   
%all apply to levies made aft] ! date ( 
! enactm5t ( ?is ,act4  #ag4 ,repeal (  
p>tial paym5t requirem5t on submissions 
( (f]s-9-compromise  7a7 ,9 g5]al       
,section #gabb ( ! ,int]nal ,rev5ue     

,code ( #aihf is am5d$ by /rik+         
subsection 7c7 & by r$esignat+          
subsections 7d71 7e71 7f71 & 7g7 z      
subsections 7c71 7d71 7e71 & 7f71       
respectively4  7b7 ,con=m+ am5dm5ts     
7#a7 ,p>agraph 7#c7 ( section #gabb7;c7 
( ! ,int]nal ,rev5ue ,code ( #aihf1 z   
r$esignat$ by subsection 7a71 is am5d$  
by ins]t+ & at ! end ( subp>agraph 7,a71
 by /rik+ 1 & at ! end ( subp>agraph    
7,b7 & ins]t+ a p]iod1 & by /rik+       
subp>agraph 7,c74  7#b7 ,section #gabb (
 su* ,code1 z am5d$ by ?is section1 is  
am5d$ by add+ at ! end ! foll[+ new     
subsection3  7g7 ,application ( us] fee 
,9 ! case ( any assess$ tax or o!r      
am\nts impos$ "u ?is title ) respect to 
su* tax :i* is ! subject ( an           
(f]-9-compromise1 su* tax or o!r am\nts 
%all be r$uc$ by any us] fee impos$ "u  
?is title ) respect to su*              
(f]-9-compromise4  4  7#c7 ,section     
#faei7;g7 ( su* ,code is am5d$ by /rik+ 
section #gabb7;e7 & ins]t+ section      
#gabb7;d74  7c7 ,effective date ,!      

am5dm5ts made by ?is section %all apply 
to (f]s-9-compromise submitt$ aft] !    
date ( ! enactm5t ( ?is ,act4