,,ii #aaith ,,congress #b;d ,session ,s4 #cica ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,february #bf1 #bjbf,mr4 ,crapo 7for himself and ,mr4 ,wyden7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to improve services provided to taxpayers by the ,internal ,revenue ,service4 #a4 ,short title2 etc 7a7 ,short title ,this ,act may be cited as the ,taxpayer ,assistance and ,service ,act or the ,,tas ,act4 7b7 ,amendment of #aihf code ,except as otherwise expressly provided1 whenever in this ,act an amendment is expressed in terms of an amendment to 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 ,references to ,secretary ,for purposes of 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--,tax ,administration and ,customer ,service,sec4 #aja4 ,digitization of tax returns and correspondence4,sec4 #ajb4 ,establishment of dashboard to inform taxpayers of backlogs and wait times4,sec4 #ajc4 ,expansion of electronic access to information about returns and refunds4,sec4 #ajd4 ,expansion of callback technology4,sec4 #aje4 ,expansion of online accounts4,sec4 #ajf4 ,automation of refund offset bypass4,sec4 #ajg4 ,installment agreement fees eliminated for certain individuals4,sec4 #ajh4 ,individuals facing economic hardships informed of collection alternatives4,sec4 #aji4 ,quarterly notices to certain taxpayers with delinquencies4,sec4 #aaj4 ,low-income taxpayer clinic funding unlocked4,sec4 #aaa4 ,chief ,counsel reviews of offers-in-compromise streamlined4,sec4 #aab4 ,modification of procedural requirements for penalties and disallowance periods4,sec4 #aac4 ,return of amounts collected by ,,irs in excess of accepted offer-in-compromise amount4,sec4 #aad4 ,extension of period for return of amounts subject to wrongful levy4,sec4 #aae4 ,reports to ,congress4,,title ,,ii--,american ,citizens ,abroad,sec4 #bja4 ,report on combined tax and foreign bank and financial account reporting4,sec4 #bjb4 ,study and reports on simplification4,sec4 #bjc4 ,simplification of currency exchanges rules4,sec4 #bjd4 ,increase in threshold for simplified foreign tax credit rules and reporting4,sec4 #bje4 ,extension of time for persons outside of the ,united ,states to request abatement of math error4,,title ,,iii--,judicial ,review,sec4 #cja4 ,authorization of subpoenas before hearings to facilitate settlements4,sec4 #cjb4 ,clarification of ,tax ,court authority to order relief from a judgment or order4,sec4 #cjc4 ,authorization of special trial judges to hear additional cases and address contempt4,sec4 #cjd4 ,disqualification of judges and special trial judges4,sec4 #cje4 ,notice and review with respect to multi-year bans on claiming credits4,sec4 #cjf4 ,authorization of de novo review of innocent spouse relief by the ,tax ,court and other courts4,sec4 #cjg4 ,clarification of certain court filing deadlines4,sec4 #cjh4 ,clarification of ,tax ,court jurisdiction to determine tax liability in collection due process appeals4,sec4 #cji4 ,authorization of the ,tax ,court to issue refunds in collection due process cases4,sec4 #caj4 ,authorization of the ,tax ,court to hear suits for refunds or credits4,sec4 #caa4 ,authorization to use deficiency procedures for certain penalties4,sec4 #cab4 ,authorization to allow claims for refund in certain cases where full tax not paid4,sec4 #cac4 ,adjustment of threshold for small disputes4,,title ,,iv--,office of the ,taxpayer ,advocate,sec4 #dja4 ,,nta authorization to direct hire attorneys4,sec4 #djb4 ,,nta authorization to make personnel decisions4,sec4 #djc4 ,access to ,internal ,revenue ,service information1 legal advice1 and meetings4,sec4 #djd4 ,repeal of limitation period suspension for taxpayers seeking assistance from ,,tas4,sec4 #dje4 ,operations to assist taxpayers experiencing hardships during lapse in appropriations4,,title ,v--,tax ,return ,preparers,sec4 #eja4 ,penalties for tax return preparers who improperly alter returns4,sec4 #ejb4 ,penalties for failure to provide valid preparer identification numbers4,sec4 #ejc4 ,penalties for improper tax preparation or misappropriation of refunds4,sec4 #ejd4 ,authority to deny1 revoke1 or suspend preparer tax identification numbers4,,title ,,vi--,appeals,sec4 #fja4 ,authorization for ,office of ,appeals to hire attorneys4,sec4 #fjb4 ,authorization for ,office of ,appeals to direct hire certain individuals4,sec4 #fjc4 ,responses to claims for refund required2 appeal of claims for refund authorized4,sec4 #fjd4 ,appeals of returned offers4,sec4 #fje4 ,purposes and duties of ,independent ,office of ,appeals2 right of appeal clarified4,,title ,,vii--,whistleblowers,sec4 #gja4 ,standard and scope of review of whistleblower award determinations4,sec4 #gjb4 ,exemption from sequestration4,sec4 #gjc4 ,whistleblower privacy protections4,sec4 #gjd4 ,modification of ,,irs whistleblower report4,sec4 #gje4 ,interest on whistleblower awards4,sec4 #gjf4 ,correction regarding deductions for attorney's fees4,,title ,,viii--,hostages,sec4 #hja4 ,postponement of tax deadlines for hostages and individuals wrongfully detained abroad4,sec4 #hjb4 ,refund and abatement of penalties and fines paid by eligible individuals4,,title ,,ix--,small ,businesses,sec4 #ija4 ,implementation of voluntary withholding agreements for payments to independent contractors4,sec4 #ijb4 ,establishment of failure-to-pay penalty safe harbor for individuals4,sec4 #ijc4 ,extension of mailbox rule to electronic submissions and payments4,sec4 #ijd4 ,specificity of third-party contact notices4,,title ,x--,miscellaneous,sec4 #ajja4 ,authority for redisclosure of certain tax information related to education loans to the ,congressional ,budget ,office4,sec4 #ajjb4 ,authorization to require large partnerships to file on magnetic media4,sec4 #ajjc4 ,limitation period not extended for victims of preparer fraud4,sec4 #ajjd4 ,technical amendment related to the ,disaster ,related ,extension of ,deadlines ,act4 ,i ,tax ,administration and ,customer ,service #aja4 ,digitization of tax returns and correspondence 7a7 ,returns accepted electronically ,any ,federal tax return which any person is required to file with the ,secretary1 as well as any amendments to such return-- 7#a7 may be filed by such person electronically1 and 7#b7 if such return or amendment is filed electronically1 shall be processed electronically by the ,secretary4 7b7 ,digitization of returns and correspondence ,the ,internal ,revenue ,service shall use optical character recognition technology 7or any functionally similar technology7 to transcribe-- 7#a7 any return which is received by the ,internal ,revenue ,service only in a paper form1 or 7#b7 any correspondence which is received by the ,internal ,revenue ,service only in a paper form4 7c7 ,exceptions 7#a7 ,in general ,subsection 7b7 shall not apply to any technology to the extent that the ,secretary determines such technology is slower or less reliable than-- 7,a7 the process of manually transcribing returns or correspondence received in a paper form1 or 7,b7 any other process that the ,internal ,revenue ,service is using or would otherwise use4 7#b7 ,report to congress ,any exception to the application of a technology described in subsection 7b7 pursuant to paragraph 7#a7 shall not take effect unless the ,secretary provides a report to the ,committee on ,ways and ,means of the ,house of ,representatives and the ,committee on ,finance of the ,senate regarding the determination made by the ,secretary under such paragraph within #cj days of such determination4 7d7 ,effective date ,this section shall apply to-- 7#a7 any individual income tax return 7as defined in section #fjaa7;e77#c77;,c7 of the ,internal ,revenue ,code of #aihf7 received on or after ,january #a of the first calendar year beginning more than #ahj days after the date of enactment of this ,act1 7#b7 any estate tax return 7as described in section #fjah of such ,code7 or gift tax return 7as described in section #fjai of such ,code7 received on or after ,january #a of the first calendar year beginning more than #bd months after the date of enactment of this ,act1 and 7#c7 any other return or correspondence received on or after ,january #a of the first calendar year beginning more than #ah months after the date of enactment of this ,act4 #ajb4 ,establishment of dashboard to inform taxpayers of backlogs and wait times 7a7 ,in general ,the ,secretary shall require the ,internal ,revenue ,service to provide in real time on its public website1 to the extent practicable1 the following3 7#a7 ,separately with respect to each applicable phone number extension-- 7,a7 the number of callers connected to speak directly with a representative of the ,internal ,revenue ,service1 7,b7 the number of callers connected to speak with an automated system1 7,c7 the number of callers who are waiting to be connected to speak directly with a representative of the ,internal ,revenue ,service or an automated system1 7,d7 the longest amount of time that any caller has been waiting to be connected to speak directly with a representative of the ,internal ,revenue ,service1 and 7,e7 whether callback service is currently available1 and if not1 when such service is scheduled to be available4 7#b7 ,an application or tool embedded on the website which-- 7,a7 displays all of the information described in paragraph 7#a71 and 7,b7 estimates the approximate wait time to speak directly with a representative of the ,internal ,revenue ,service4 7#c7 ,an application programming interface which allows any person to access the information described in subsection 7a77#a7 using automation and to create an application or tool embedded on a website to display such information4 7#d7 ,for each applicable phone number extension1 a summary of the information described in paragraph 7#a7 with respect to the prior month1 including-- 7,a7 the average and median length of calls1 7,b7 the average and median amount of time that callers were speaking directly with a representative of the ,internal ,revenue ,service1 7,c7 the number and percent of calls that were directed to an automated system1 7,d7 the number and percent of calls that were disconnected or terminated by the ,internal ,revenue ,service1 7,e7 the number of callers who were transferred to another applicable phone number extension after the call was initially answered by a representative of the ,internal ,revenue ,service1 7,f7 the average and median amount of time that callers described in subparagraph 7,e7 were on hold following the transfer1 and 7,g7 the number and percent of callers who indicated that they received the answers or service for which they were contacting the ,internal ,revenue ,service4 7b7 ,detection of automated calls ,the ,secretary shall require the ,internal ,revenue ,service to use technology to detect and screen out automated calls4 7c7 ,information regarding delays ,for any week in which there was a significant delay with respect to any applicable item 7referred to in this subsection as an applicable week71 the ,secretary shall require the ,internal ,revenue ,service to provide on its public website1 during the week subsequent to the applicable week1 information with respect to each such applicable item regarding the earliest date on which any such applicable items that were processed during the applicable week were received by the ,internal ,revenue ,service4 7d7 ,definitions ,for purposes of this section-- 7#a7 ,applicable item ,the term applicable item means each category of tax return1 claim1 statement1 or other document filed with the ,internal ,revenue ,service4 7#b7 ,applicable phone number extension ,the term applicable phone number extension means any extension or application which may be reached by calling a phone number which is listed by the ,internal ,revenue ,service on any website1 publication1 form1 or instruction which is available to the public and-- 7,a7 operated by the ,internal ,revenue ,service accounts management function1 7,b7 operated by the ,internal ,revenue ,service automated collection function1 7,c7 managed by the ,internal ,revenue ,service ,joint ,operations ,center1 7,d7 managed and staffed by a contractor on behalf of the ,internal ,revenue ,service1 or 7,e7 received not less than #bjj1jjj calls during the preceding calendar year4 7#c7 ,significant delay ,the term significant delay means1 in the case of any applicable item for any week1 the failure to process all of such applicable items which were received by the ,internal ,revenue ,service at least #ba days before the first day of the week4 7e7 ,effective date ,the requirements of this section shall apply to periods beginning after the date which is #ab months after the date of enactment of this ,act4 #ajc4 ,expansion of electronic access to information about returns and refunds ,not later than ,january #a of the first calendar year beginning more than #ab months after the date of enactment of this ,act1 through a website and mobile application1 the ,secretary shall provide individualized1 specific1 and up-to-date information to taxpayers regarding their tax returns and amended returns1 including information with respect to whether the ,internal ,revenue ,service has-- 7#a7 received such return and entered such return into their systems1 7#b7 completed processing such return1 including-- 7,a7 the date on which the ,internal ,revenue ,service issued any refund of any overpayment of tax1 7,b7 the estimated date on which the taxpayer can expect to receive such refund1 and 7,c7 7i7 if the refund will be issued by electronic fund transfer1 the financial account to which such refund will be deposited1 including-- 7,i7 the partial or full account number for such account1 and 7,,ii7 the name and routing number of the financial institution1 or 7ii7 if the refund will be issued by paper check1 the address to which the check will be mailed1 or 7#c7 suspended processing such return1 including-- 7,a7 the reason for the suspension1 and 7,b7 in the case of any information which was requested by the ,internal ,revenue ,service-- 7i7 the information requested1 7ii7 the form and manner for submission of such information1 and 7iii7 the date on which such information is due to be submitted to the ,internal ,revenue ,service4 #ajd4 ,expansion of callback technology ,it is the sense of ,congress that-- 7#a7 taxpayers contacting the ,internal ,revenue ,service should have the option to receive a callback1 and 7#b7 not later than calendar year #bjbh1 the ,internal ,revenue ,service should provide any taxpayer 7including any taxpayer residing outside of the ,united ,states7 the option to receive a callback for any call made by the taxpayer to an applicable phone number extension 7as defined in section #ajb7;d77#b7 of this ,act7 which has not been answered within #e minutes4 #aje4 ,expansion of online accounts 7a7 ,in general ,not later than ,january #a of the first calendar year beginning more than #ah months after the date of enactment of this ,act1 the ,secretary shall make available a website or mobile application which allows any taxpayer 7including any taxpayer residing outside of the ,united ,states7 the ability to-- 7#a7 in a manner consistent with any applicable limitations under section #fajc of the ,internal ,revenue ,code of #aihf1 view any return 7as defined in section #fajc7;b77#a7 of the ,internal ,revenue ,code of #aihf71 document1 notice1 or letter 7with the exception of any educational item which has no legal effect7 which1 during the applicable period 7as defined in subsection 7d771 has been-- 7,a7 sent by the ,internal ,revenue ,service to such taxpayer1 or 7,b7 filed with 7or1 in the case of any document not required to be filed1 sent to7 the ,internal ,revenue ,service-- 7i7 by such taxpayer1 7ii7 by a person described in subsection 7c7 of section #fajc of the ,internal ,revenue ,code of #aihf with respect to such taxpayer1 or 7iii7 with respect to such taxpayer in a manner described in subsection 7e7 of such section1 7#b7 with respect to any document1 notice1 or letter sent to such taxpayer by the ,internal ,revenue ,service1 respond to such document1 notice1 or letter by uploading or otherwise transmitting the taxpayer's response through the website or mobile application1 and 7#c7 in the case of-- 7,a7 any representative of such taxpayer who is authorized to practice before the ,department of the ,treasury pursuant to section #ccj of title #ca1 ,united ,states ,code1 7,b7 any tax return preparer 7as defined in section #ggja7;a77#cf7 of the ,internal ,revenue ,code of #aihf7 with an identifying number 7as described in section #faji7;a77#d7 of such ,code71 or 7,c7 any qualified reporting agent1 permit such representative1 preparer1 or agent1 to the extent authorized by the taxpayer1 to access the information described in paragraph 7#a7 or transmit any information described in paragraph 7#b74 7b7 ,availability for viewing ,with respect to any return1 document1 notice1 or letter described in paragraph 7#a7 of subsection 7a71 such return1 document1 notice1 or letter shall be made available for viewing by the taxpayer 7or1 pursuant to paragraph 7#c7 of such subsection1 any representative1 tax return preparer1 or qualified reporting agent authorized by the taxpayer7 as soon as is practicable and within such periods as are established pursuant to regulations prescribed by the ,secretary4 7c7 ,access to multiple accounts by representative1 preparer1 or agent ,for purposes of subsection 7a77#c71 the website or mobile application shall allow a representative1 tax return preparer1 or qualified reporting agent to be able to access information for multiple taxpayers who have provided permission under such subsection without any requirement to individually and separately access the account of each such taxpayer4 7d7 ,applicable period 7#a7 ,in general ,subject to paragraph 7#b71 for purposes of subsection 7a77#a71 the term applicable period means the preceding #f-year period4 7#b7 ,prospective application ,the term applicable period shall not include any years ending before the date of enactment of this ,act4 7e7 ,qualified reporting agent 7#a7 ,in general ,for purposes of this section1 the term qualified reporting agent means a person-- 7,a7 which is properly authorized as an agent to sign and file employment tax returns1 make related payments and deposits1 and perform such other acts on behalf of a taxpayer under procedures set forth by the ,secretary1 7,b7 which has met such requirements as may be established by the ,secretary1 and 7,c7 for which authorization has not been revoked or suspended by the ,secretary pursuant to procedures established by the ,secretary4 7#b7 ,employment tax return ,for purposes of paragraph 7#a77;,a71 the term employment tax return means-- 7,a7 any return required to be filed by an employer to report the obligations of the employer and its employees under section #caja1 #caaa1 #ccja1 or #cdjb of the ,internal ,revenue ,code of #aihf1 and 7,b7 such other returns as designated by the ,secretary4 7f7 ,preventing unauthorized disclosure of return information by persons designated by taxpayers ,not later than ,january #a of the first calendar year beginning more than #ah months after the date of enactment of this ,act1 the ,secretary shall-- 7#a7 establish a program to investigate and address-- 7,a7 any access1 use1 or disclosure of return information 7as defined in section #fajc7;b7 of the ,internal ,revenue ,code of #aihf7 by any person which is in excess of the authorization permitted to such person pursuant to subsection 7a77#c71 and 7,b7 any related misconduct1 and 7#b7 annually publish1 on the public website of the ,internal ,revenue ,service1 the actions undertaken pursuant to the program described in paragraph 7#a71 such as the number of complaints investigated1 the number of persons whose access was revoked1 and other relevant statistical data4 7g7 ,focus groups ,for purposes of subsection 7a71 prior to the date that the website or mobile application described in such subsection is made available1 the ,secretary shall conduct focus groups with taxpayers and tax professionals to ensure that any amounts appropriated or otherwise made available for such purposes are expended in an appropriate manner4 #ajf4 ,automation of refund offset bypass 7a7 ,in general ,section #fdjb7;a7 is amended-- 7#a7 by striking ,in the case and inserting the following3 7#a7 ,authority ,except as provided in paragraph 7#b71 in the case 1 and 7#b7 by adding at the end the following new paragraphs3 7#b7 ,special rule for certain individuals ,in the case of an overpayment with respect to any taxable year for which a credit is allowed to an applicable taxpayer under section #cb1 the ,secretary shall1 subject to subsections 7c71 7d71 7e71 and 7f71 refund such overpayment in an amount not to exceed the amount of the credit allowed under such section for such taxable year4 7#c7 ,applicable taxpayer ,for purposes of paragraph 7#b71 the term applicable taxpayer means a taxpayer who was classified by the ,secretary as currently not collectible 7within the meaning of section #fcdc7;e77 prior to the date on which the refund was requested by the taxpayer4 4 7b7 ,effective date ,the amendments made by this section shall apply to offsets made after the date which is #ab months after the date of enactment of this ,act4 #ajg4 ,installment agreement fees eliminated for certain individuals 7a7 ,in general ,section #faei7;f7 is amended by striking paragraph 7#b7 and inserting the following3 7#b7 ,waiver ,no fee shall be imposed on an installment agreement under this section in the case of-- 7,a7 any taxpayer with an adjusted gross income1 as determined for the most recent year for which such information is available1 which does not exceed #bej percent of the applicable poverty level 7as determined by the ,secretary71 or 7,b7 any taxpayer which has-- 7i7 entered into the installment agreement using the public website of the ,internal ,revenue ,service1 and 7ii7 agreed to make payments under the installment agreement by electronic payment through a debit instrument4 4 7b7 ,effective date ,the amendment made by this section shall apply to installment agreements entered into after the date which is #ab months after the date of enactment of this ,act4 #ajh4 ,individuals facing economic hardships informed of collection alternatives 7a7 ,in general ,not later than #ab months after the date of enactment of this ,act1 the ,secretary shall-- 7#a7 establish a program to identify taxpayers who-- 7,a7 are reasonably likely to be experiencing an economic hardship1 and 7,b7 have an unpaid tax liability1 and 7#b7 in the case of any taxpayer described in paragraph 7#a7 who requests to enter into an agreement described in section #faei7;a7 of the ,internal ,revenue ,code of #aihf1 provide such taxpayer with information regarding other options which the ,internal ,revenue ,service makes available to taxpayers who have an unpaid tax liability and are experiencing an economic hardship1 including-- 7,a7 an agreement described in such section for partial collection of a tax liability1 7,b7 an offer-in-compromise 7as described in section #gabb of such ,code71 and 7,c7 classification as currently not collectible 7within the meaning of section #fcdc7;e7 of such ,code74 7b7 ,economic hardship ,for purposes of this section1 in determining whether a taxpayer is reasonably likely to be experiencing an economic hardship1 such determination shall be made in the same manner as determined under section #fcdc7;a77#a77;,d7 of the ,internal ,revenue ,code of #aihf based on-- 7#a7 the most recent income and asset data which the ,secretary has received from a return or a report from1 or with respect to1 such taxpayer1 and 7#b7 the schedules described in section #gabb7;d77#b77;,a7 of such ,code4 7c7 ,report ,not later than #b years after the date of enactment of this ,act1 the ,secretary1 in consultation with the ,national ,taxpayer ,advocate1 shall submit a report to the ,committee on ,ways and ,means of the ,house of ,representatives and the ,committee on ,finance of the ,senate regarding-- 7#a7 the accuracy of the ,internal ,revenue ,service with respect to identifying taxpayers who are reasonably likely to be experiencing an economic hardship under subsection 7a77#a71 7#b7 whether such identification procedures may be appropriately applied for other purposes1 and 7#c7 7,a7 the number of taxpayers with an unpaid tax liability who were identified as reasonably likely to be experiencing an economic hardship under subsection 7a77#a71 7,b7 the options described in subsection 7a77#b7 that were provided to such taxpayers1 and 7,c7 the status of the tax liabilities of such taxpayers4 #aji4 ,quarterly notices to certain taxpayers with delinquencies 7a7 ,in general ,section #gebd is amended-- 7#a7 in the heading1 by striking ,annual notice and inserting ,notice1 7#b7 by striking ,not less often than annually and inserting the following3 7a7 ,in general ,except as provided in subsection 7b71 not less often than quarterly 1 and 7#c7 by adding at the end the following3 7b7 ,information on penalties and interest ,the notice described in subsection 7a7 shall include-- 7#a7 an estimate of the amount of penalties and interest that may accrue if the delinquent tax debt is not fully paid within the period remaining under section #fejb7;a71 and 7#b7 programs and services that can provide assistance to the taxpayer4 7c7 ,exception ,the requirement under subsection 7a7 shall not apply-- 7#a7 during any period in which an agreement described in section #faei7;a7 or an accepted offer-in-compromise 7as described in section #gabb7 is in effect1 or 7#b7 in the case of a taxpayer for which the ,secretary has determined that the tax is not collectible 7within the meaning of section #fcdc7;e774 4 7b7 ,conforming amendment ,the table of sections for chapter #gg is amended by striking the item relating to section #gebd and inserting the following new item3 ,sec4 #gebd4 ,notice of tax delinquency4 4 7c7 ,effective date ,the amendments made by this section shall take effect on the date which is #bd months after the date of enactment of this ,act4 #aaj4 ,low-income taxpayer clinic funding unlocked 7a7 ,matching funds ,paragraph 7#e7 of section #gebf7;c7 is amended to read as follows3 7#e7 ,requirement of matching funds 7,a7 ,in general ,with respect to any grant provided to a low-income taxpayer clinic under this section1 such clinic shall provide matching funds equal to the applicable percentage of the amount of such grant4 7,b7 ,matching funds 7i7 ,in general ,for purposes of this paragraph1 the term matching funds may include-- 7,i7 the salary 7including fringe benefits7 of individuals performing services for the low-income taxpayer clinic1 and 7,,ii7 the cost of equipment used in the low-income taxpayer clinic4 7ii7 ,exclusion ,for purposes of this paragraph1 the term matching funds shall not include any indirect expenses1 such as general overhead of the institution sponsoring the low-income taxpayer clinic4 7,c7 ,applicable percentage ,for purposes of subparagraph 7,a71 the applicable percentage shall be #ajj percent1 except that the ,secretary may establish a lower percentage 7not below #be percent7 if the ,secretary determines that such percentage would expand the coverage of the low-income taxpayer clinic to additional taxpayers4 4 7b7 ,technical amendments ,section #gebf7;c71 as amended by subsection 7a71 is further amended-- 7#a7 by striking paragraphs 7#a7 and 7#b71 and 7#b7 by redesignating paragraphs 7#c7 through 7#f7 as paragraphs 7#a7 through 7#d74 7c7 ,effective date ,the amendments made by this section shall apply to calendar years beginning after the date of enactment of this ,act4 #aaa4 ,chief ,counsel reviews of offers-in-compromise streamlined 7a7 ,in ,general ,section #gabb7;b7 is amended by striking in any case and all that follows through his delegate and inserting in any case which the ,secretary determines presents a significant legal issue1 there shall be placed on file in the office of the ,secretary the opinion of the ,general ,counsel for the ,department of the ,treasury1 or the ,counsel's delegate4 7b7 ,conforming amendments ,section #gabb7;b7 is amended by striking the second and third sentences4 7c7 ,effective ,date ,the amendments made by this section shall apply to offers-in-compromise submitted or pending on or after the date of the enactment of this ,act4 #aab4 ,modification of procedural requirements for penalties and disallowance periods 7a7 ,in general ,section #fgea7;b7 is amended-- 7#a7 by striking paragraph 7#a7 and inserting the following3 7#a7 ,in general ,no penalty under this title shall be assessed1 and no disallowance period shall take effect1 unless-- 7,a7 the decision 7as defined by the ,secretary in regulations7 to apply such penalty or disallowance period1 as applicable1 is personally approved 7in writing on an electronic form7 by-- 7i7 the immediate supervisor of the individual making such decision1 or 7ii7 the ,internal ,revenue ,service ,office of ,servicewide ,penalties 7or any successor organization71 and 7,b7 the approval described in subparagraph 7,a7 is obtained on or before the date any appealable notice is sent to the taxpayer regarding the application of such penalty or disallowance period4 1 and 7#b7 by adding at the end the following3 7#c7 ,appealable notice ,for purposes of this subsection1 the term appealable notice means the first written notice issued to a taxpayer that provides the taxpayer an opportunity to-- 7,a7 appeal the decision to the ,internal ,revenue ,service ,independent ,office of ,appeals1 or 7,b7 petition a ,federal court for review of the decision4 4 7b7 ,disallowance period ,section #fgea is amended by adding at the end the following new subsection3 7d7 ,disallowance period 7#a7 ,in general ,for purposes of this section1 the term disallowance period means-- 7,a7 with respect to any credit under section #bd1 the period determined under section #bd7;g77#a71 7,b7 with respect to any credit under section #be;,a1 the period determined under section #be;,a7b77#d77;,a71 and 7,c7 with respect to any credit under section #cb1 the period determined under section #cb7k77#a74 7#b7 ,approval required for disallowance period automatically calculated through electronic means ,with respect to the application of any disallowance period1 subsection 7b77#b77;,b7 shall not apply4 4 7c7 ,effective date ,the amendments made by this section shall apply to notices sent after the date which is #ab months after the date of the enactment of this ,act4 7d7 ,report ,not later than #bd months after the date of enactment of this ,act1 and annually thereafter1 the ,secretary shall make publicly available a report regarding all penalties assessed by the ,internal ,revenue ,service pursuant to the ,internal ,revenue ,code of #aihf during the preceding calendar year1 with all relevant data regarding such penalties to be collected and reported with respect to-- 7#a7 every organizational unit of the ,internal ,revenue ,service that has power to assess1 abate1 or otherwise enforce any penalty imposed by the ,internal ,revenue ,service under the ,internal ,revenue ,code of #aihf1 and 7#b7 the progression of such penalties at each step of the determination1 assessment1 and review processes1 as well as the final result with respect to such penalties4 #aac4 ,return of amounts collected by ,,irs in excess of accepted offer-in-compromise amount 7a7 ,in general ,section #gabb is amended by adding at the end the following3 7h7 ,return amounts collected in excess of payment amount of accepted offer-in-,compromise 7#a7 ,in general ,subject to paragraph 7#b71 in the case of any taxpayer for which an offer-in-compromise has been accepted under this section1 any proceeds collected from such taxpayer after acceptance of the offer-in-compromise which are in excess of any remaining payments scheduled under such compromise shall be transferred to the taxpayer4 7#b7 ,exception ,paragraph 7#a7 shall not apply if-- 7,a7 the taxpayer and the ,secretary have specifically agreed otherwise1 or 7,b7 the ,secretary has-- 7i7 determined that1 under the terms of the compromise1 such compromise is in default1 and 7ii7 elected to terminate such compromise4 4 7b7 ,authority ,to release levy and return property ,section #fcdc is amended-- 7#a7 in subsection 7a77#a7-- 7,a7 in subparagraph 7,d71 by striking or at the end1 7,b7 in subparagraph 7,e71 by striking the period at the end and inserting 1 or1 and 7,c7 by adding at the end the following subparagraph3 7,f7 subject to subsection 7h77#b7 of section #gabb1 an offer-in-compromise is accepted under such section with respect to the liability for which the levy was imposed4 1 and 7#b7 in subsection 7d77#b7-- 7,a7 in subparagraph 7,c71 by striking or at the end1 7,b7 in subparagraph 7,d71 by striking the comma at the end and inserting 1 or1 and 7,c7 by adding at the end the following subparagraph3 7,e7 subject to subsection 7h77#b7 of section #gabb1 an offer-in-compromise is accepted under such section with respect to the liability for which the levy was imposed1 4 7c7 ,effective date ,the amendments made by this section shall apply to any compromise made under section #gabb of the ,internal ,revenue ,code of #aihf which is accepted by the ,secretary after the date of enactment of this ,act4 #aad4 ,extension of period for return of amounts subject to wrongful levy 7a7 ,in general ,section #fcdc7;b7 is amended1 in the flush text following paragraph 7#c71 by striking the date of such levy and inserting the date that the ,secretary received any such amount4 7b7 ,effective date ,the amendments made by this section shall apply to any money levied upon or any amount of money received from the sale of property after the date which is #ab months after the date of enactment of this ,act4 #aae4 ,reports to ,congress 7a7 ,implementation ,not later than the date which is #b years after the date of enactment of this ,act1 the ,secretary 7following consultation with the ,national ,taxpayer ,advocate1 the ,treasury ,inspector ,general for ,tax ,administration1 and the ,comptroller ,general of the ,united ,states7 shall provide a report to the ,committee on ,ways and ,means of the ,house of ,representatives and the ,committee on ,finance of the ,senate regarding the actions taken by the ,internal ,revenue ,service to implement this title and the amendments made by this title1 including-- 7#a7 an analysis of successes and challenges with respect to implementation of such title1 and 7#b7 any recommendations to ,congress with respect to the implementation or administration of such title4 7b7 ,fraud 7#a7 ,in general ,not later than the date which is #ab months after the date of enactment of this ,act1 and annually thereafter1 the ,secretary shall provide a report to the ,committee on ,ways and ,means of the ,house of ,representatives and the ,committee on ,finance of the ,senate regarding efforts made by the ,internal ,revenue ,service to identify1 prevent1 and resolve each type of tax fraud1 including first-person fraud and stolen identity refund fraud4 7#b7 ,information included in report ,the report described in paragraph 7#a7 shall include-- 7,a7 a detailed description1 timeline1 and analysis of any efforts undertaken by the ,internal ,revenue ,service and any of the other members of the ,security ,summit during the most recent tax filing season to address and prevent each type of tax fraud1 including-- 7i7 any specific information or guidelines provided by the ,internal ,revenue ,service to any of the other members of the ,security ,summit 7and vice versa7 with respect to tax fraud1 including-- 7,i7 any be on the lookout alerts or other warnings1 7,,ii7 updated guidelines or restrictions1 7,,iii7 potential threat analyses1 7,,iv7 specific data or analytics1 and 7,v7 any other actionable threat information1 and 7ii7 any specific recommendations provided by the ,internal ,revenue ,service to any of the other members of the ,security ,summit 7and vice versa7 with respect to identifying1 preventing1 and resolving tax fraud1 including any potential improvements to data1 analytics1 information sharing1 and collaboration between the ,internal ,revenue ,service and other members of the ,security ,summit1 7,b7 a detailed description and timeline of any interactions between the ,internal ,revenue ,service and any provider of tax filing options which does not participate in the ,security ,summit1 including-- 7i7 any specific information or guidelines provided by the ,internal ,revenue ,service to such provider 7and vice versa7 with respect to each type of tax fraud1 including any items described in subclauses 7,i7 through 7,v7 of subparagraph 7,a77i71 and 7ii7 any specific recommendations provided by the ,internal ,revenue ,service to such provider 7and vice versa7 with respect to identifying1 preventing1 and resolving tax fraud1 including any potential improvements to data1 analytics1 information sharing1 and collaboration between the ,internal ,revenue ,service and such provider1 and 7,c7 with respect to the most recently completed tax filing season-- 7i7 with respect to each specific type or form of tax fraud that has been identified by the ,internal ,revenue ,service1 any relevant data and analysis regarding the amount of such fraud during such tax filing season1 including detailed numerical data regarding such fraud in relation to each separate ,federal tax return form 7including any amended returns7 and the manner in which such returns were filed1 and 7ii7 the total dollar amount of fraudulent claims for refund-- 7,i7 for which any disbursement was erroneously made1 and 7,,ii7 which were identified and disallowed prior to any disbursement being made4 7#c7 ,publicly available ,data included in the report described in paragraph 7#a7 shall be made available on the public website of the ,internal ,revenue ,service1 provided that such data is appropriately redacted by the ,secretary4 7c7 ,complexity report ,for purposes of section #djbb of the ,internal ,revenue ,service ,restructuring and ,reform ,act of #aiih 7#bf ,u4,s4,c4 #ghja note71 the submission of the report required under section #ghjc7;c77#b77;,b7 of the ,internal ,revenue ,code of #aihf shall not satisfy the requirement under subsection 7a7 of section #djbb of such ,act to conduct an analysis of the sources of complexity in administration of the ,federal tax laws and report the results of such analysis4 ,,ii ,american ,citizens ,abroad #bja4 ,report on combined tax and foreign bank and financial account reporting 7a7 ,study 7#a7 ,in general ,the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall conduct a study on-- 7,a7 combining and simplifying reporting required under section #ecad of title #ca1 ,united ,states ,code1 and sections #fjch1 #fjch;,a1 #fjch;,b1 #fjch;,c1 #fjch;,d1 #fjci;,f1 #fjdf;,a1 and #fjdh of the ,internal ,revenue ,code of #aihf2 and 7,b7 eliminating duplicative requests for information from nonresident ,united ,states taxpayers4 7#b7 ,consultation ,the study conducted under paragraph 7#a7 shall include input from the ,national ,taxpayer ,advocate and nonresident ,united ,states taxpayers4 7b7 ,report ,not later than #ahj days after the date of enactment of this ,act1 the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall submit to ,congress a report on the study conducted under subsection 7a71 which shall include any actions taken by the ,secretary as a result of such study and any recommendations for legislative changes necessary to effectuate the goals described in paragraphs 7#a7 and 7#b7 of subsection 7a74 #bjb4 ,study and reports on simplification 7a7 ,,gao study and report 7#a7 ,in general ,the ,comptroller ,general of the ,united ,states shall conduct a study on the burdens of compliance with ,federal tax laws applicable to individuals who are ,united ,states persons 7as defined in section #ggja7;a77#cj7 of the ,internal ,revenue ,code of #aihf7 living abroad4 7#b7 ,factors considered ,the study conducted under subsection 7a7 shall identify problems relating to compliance of ,federal tax laws for such ,united ,states persons1 including burdens specific to low-income and moderate-income individuals1 related to-- 7,a7 understanding and complying with ,united ,states tax obligations1 including obligations with respect to-- 7i7 the duty to file returns and pay taxes while living abroad1 including in the absence of tax treaties that otherwise eliminate double taxation of income2 7ii7 the filing 7including through electronic means7 of ,federal tax returns and any reports required under section #ecad of title #ca1 ,united ,states ,code1 in a timely1 accurate1 and affordable manner2 7iii7 foreign retirement plans treated as passive foreign investment companies2 and 7iv7 foreign currency gains2 7,b7 receiving and responding to inquiries from the ,internal ,revenue ,service and the ,financial ,crimes ,enforcement ,network about returns and reports described in subparagraph 7,a77ii71 and access to services of such agencies with respect to such returns and reports2 7,c7 access to financial products and services abroad1 including local retirement vehicles and bank accounts2 7,d7 access to affordable tax preparation services for ,united ,states income tax obligations2 and 7,e7 compliance burdens that are disproportionate to the amount of tax owed4 7#c7 ,report ,not later than #a year after the date of the enactment of this ,act1 the ,comptroller ,general shall submit to the ,secretary of the ,treasury and to ,congress1 and make publicly available1 a report on the study conducted under paragraph 7#a74 7b7 ,treasury report ,not later than #a year after the date on which the ,comptroller ,general submits the report under subsection 7a77#c71 the ,secretary of the ,treasury shall submit to ,congress a report that describes-- 7#a7 actions taken by the ,department of the ,treasury to address any problems identified by the ,comptroller ,general in such report2 and 7#b7 any legislation necessary to address such problems4 #bjc4 ,simplification of currency exchanges rules 7a7 ,increase in threshold for exclusion for personal transactions 7#a7 ,in general ,the second sentence of section #ihh7;e77#b7 is amended by striking #bjj and inserting #a1jjj4 7#b7 ,inflation adjustment ,section #ihh7;e7 is amended by adding at the end the following new paragraph3 7#d7 ,inflation adjustment 7,a7 ,in general ,in the case of any taxable year beginning after #bjbe1 the #a1jjj amount in paragraph 7#b7 shall be increased by an amount equal to-- 7i7 such dollar amount1 multiplied by 7ii7 the cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year in which the taxable year begins1 determined by substituting in subparagraph 7,a77ii7 thereof calendar year #bjbd for calendar year #bjaf4 7,b7 ,rounding ,if any amount as adjusted under subparagraph 7,a7 is not a multiple of #ej1 such dollar amount shall be rounded to the next lowest multiple of #ej4 4 7b7 ,foreign currency losses related to sales of personal residences 7#a7 ,in general ,section #afe7;c7 is amended by striking and at the end of paragraph 7#b71 by striking the period at the end of paragraph 7#c7 and inserting a comma1 and by adding at the end the following new paragraphs3 7#d7 foreign currency losses not described in paragraph 7#a7 or 7#b7 with respect to qualified mortgage debt1 but only to the extent of any gain recognized during the taxable year on the sale of a qualified residence 7as defined in section #afc7;h77#e77 which is located outside of the ,united ,states or any possession of the ,united ,states and which secures such qualified mortgage debt1 and 7#e7 losses 7not described in paragraph 7#a7 or 7#b77 from the sale or exchange of a qualified residence 7as so defined7 which is located outside of the ,united ,states or any possession of the ,united ,states1 but only to the extent of any foreign currency gain recognized during the taxable year with respect to qualified mortgage debt secured by such qualified residence4 4 7#b7 ,qualified mortgage debt ,section #afe is amended by redesignating subsection 7m7 as subsection 7n7 and by inserting after subsection 7l7 the following new subsection3 7m7 ,definitions related to qualified mortgage debt and foreign currency gains and losses ,for purposes of this section-- 7#a7 ,qualified mortgage debt ,the term qualified mortgage debt means-- 7,a7 any acquisition indebtedness 7as defined in section #afc7;h77#c77;,b71 determined without regard to clause 7ii7 thereof7 of an individual1 7,b7 any home equity indebtedness 7as defined in section #afc7;h77#c77;,c71 determined without regard to clause 7ii7 thereof7 of an individual1 and 7,c7 any other indebtedness 7including any non-debt that functions as debt7 which is related to the purchase or ownership of real estate by1 or for the benefit of1 individuals and which is approved under regulations or guidance provided by the ,secretary4 7#b7 ,foreign currency loss ,the term foreign currency loss means1 with respect to any qualified mortgage debt1 any loss which would be described in section #ihh7;b77#b7 if the transaction involving the qualified mortgage debt were treated as a section #ihh transaction4 7#c7 ,foreign currency gain ,the term foreign currency gain means1 with respect to any qualified mortgage debt1 any gain which would be described in section #ihh7;b77#a7 if the transaction involving the qualified mortgage debt were treated as a section #ihh transaction4 4 7#c7 ,character and source of loss ,section #afe7;f7 is amended to read as follows3 7,a7 by striking ,losses from and inserting the following3 7#a7 ,in general ,losses from 1 and 7,b7 by adding at the end the following new paragraph3 7#b7 ,special rule for amounts attributable to qualified mortgage debt ,the character and source of any foreign currency loss with respect to qualified mortgage debt which is allowed under section #afe7;c77#d7 shall be the same character and source as the character and source of the gain on the sale of the qualified residence which secures such qualified mortgage debt4 7#c7 ,special rule for losses from the sale or exchange of qualified residences ,the character and source of any loss from the sale or exchange of a qualified residence which is allowed under subsection 7c77#e7 shall be the same character and source as the character and source of the gain of the qualified mortgage debt secured by such qualified residence4 4 7#d7 ,treatment of foreign currency loss deduction ,section #fb7;a7 is amended by inserting after paragraph 7#ba7 the following new paragraph3 7#bb7 ,certain foreign currency losses ,the deduction allowed by section #afe7;c77#d74 4 7c7 ,special rule for home mortgage refinancing transactions ,section #ihi is amended by redesignating subsection 7c7 as subsection 7d7 and by inserting after subsection 7b7 the following new subsection3 7c7 ,special rule for home mortgage refinancing transactions ,in the case of the refinancing of any qualified mortgage debt 7as defined in section #afe7m77 in a nonfunctional currency-- 7#a7 no foreign currency gain or loss shall be recognized1 and 7#b7 the amount of foreign currency gain or loss on the repayment of such debt shall be determined by reference to the liability of the borrower at the time the debt was originally incurred 7as determined under regulations or other guidance prescribed by the ,secretary74 4 7d7 ,election ,to use average exchange rate with respect to certain foreign currency transactions ,section #ihi1 as amended by subsection 7c71 is further amended by redesignating subsection 7d7 as subsection 7e7 and by inserting after subsection 7c7 the following new subsection3 7d7 ,election ,to aggregate transaction with respect to foreign earned income 7#a7 ,in general ,in the case of a qualified individual who makes an election under this subsection-- 7,a7 all transactions during a calendar year which involve an item of qualified income or expense shall be treated as #a transaction1 and 7,b7 the amount of foreign currency gain or loss attributable to such transaction shall be determined by using the average exchange rate for the calendar year4 7#b7 ,qualified individual ,for purposes of this subsection1 the term qualified individual has the meaning given such term under section #iaa7;d77#a74 7#c7 ,item of qualified income or expense ,for purposes of this subsection1 the term item of qualified income or expense means-- 7,a7 foreign earned income 7as defined in section #iaa7;b77#a77;,a71 determined without regard to section #iaa7;b77#a77;,b771 and 7,b7 any other item of income or expense specified by the ,secretary in regulations4 4 7e7 ,effective date ,the amendments made by this section shall apply to transactions in taxable years beginning after the date of the enactment of this ,act4 #bjd4 ,increase in threshold for simplified foreign tax credit rules and reporting 7a7 ,in general ,subparagraph 7,b7 of section #ijd7;j77#b7 is amended by striking #cjj 7#fjj and inserting #a1jjj 7#b1jjj4 7b7 ,inflation adjustment ,section #ijd7;j7 is amended by adding at the end the following new paragraph3 7#d7 ,inflation adjustment 7,a7 ,in general ,in the case of any taxable year beginning in a calendar year after #bjbe1 each of the dollar amounts under paragraph 7#b77;,b7 shall be increased by an amount equal to-- 7i7 such dollar amount1 multiplied by 7ii7 the cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year in which the taxable year begins1 determined by substituting in subparagraph 7,a77ii7 thereof calendar year #bjbd for calendar year #bjaf4 7,b7 ,rounding ,if any amount as adjusted under subparagraph 7,a7 is not a multiple of #ej1 such dollar amount shall be rounded to the next lowest multiple of #ej4 4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after the date of the enactment of this ,act4 #bje4 ,extension of time for persons outside of the ,united ,states to request abatement of math error 7a7 ,in general ,section #fbac7;b77#b77;,a7 is amended by inserting 7#abj days in the case of a notice addressed to a person outside the ,united ,states7 after #fj days4 7b7 ,effective date ,the amendment made by this section shall apply to notices sent after the date that is #ahj days after the date of the enactment of this ,act4 ,,iii ,judicial ,review #cja4 ,authorization of subpoenas before hearings to facilitate settlements ,section #gdef7;a7 is amended to read as follows3 7a7 ,in general 7#a7 ,administration of oaths ,for the efficient administration of the functions vested in the ,tax ,court or any division thereof1 any judge or special trial judge1 the clerk or the clerk's deputies1 as such1 or any other employee of the ,tax ,court designated in writing for the purpose by the chief judge1 may administer oaths or affirmations4 7#b7 ,examination ,any judge or special trial judge may examine parties or witnesses4 7#c7 ,subpoena authority ,any judge or special trial judge may require1 by subpoena ordered by the ,tax ,court or any division thereof and signed by the judge or special trial judge 7or by the clerk of the ,tax ,court or by any other employee of the ,tax ,court when acting as deputy clerk71 any of the following3 7,a7 ,the attendance and testimony of parties or witnesses4 7,b7 ,the production of books1 papers1 documents1 electronically stored information1 or tangible things from any place in the ,united ,states by any party or witness having custody or control thereof for purposes of discovery or for use of the things produced as evidence in accordance with the rules and orders of the ,tax ,court4 ,any such subpoena shall be issued and served1 and compliance therewith shall be compelled1 as provided in the rules and orders of the ,tax ,court4 7#d7 ,depositions ,pursuant to rules and orders of the ,court1 the deposition of a witness may be taken before any designated individual competent to administer oaths under this title4 ,any deposition testimony shall be reduced to writing by the individual taking the deposition1 or under such individual's direction1 and shall be subscribed by the deponent4 4 #cjb4 ,clarification of ,tax ,court authority to order relief from a judgment or order ,section #gdha is amended-- 7#a7 by striking and 7d71 in subsection 7a7 and inserting 7d71 and 7e712 and 7#b7 by adding at the end the following new subsection3 7e7 ,relief from a judgment or order 7#a7 ,corrections based on clerical mistakes2 oversights and omissions 7,a7 ,in general ,the ,tax ,court may correct a clerical mistake1 or a mistake arising from oversight or omission1 whenever one is found in a judgment1 order1 or other part of the record4 ,the ,tax ,court may do so on motion or on its own1 with or without notice4 7,b7 ,appellate court leave required on appeal ,after an appeal has been docketed in the appellate court1 and while such appeal is pending1 any such mistake may be corrected only with the appellate court's leave4 7#b7 ,grounds for relief from a final judgment or order ,on motion and just terms1 the ,tax ,court may relieve a party or its legal representative from a final judgment or order for any of the following reasons3 7,a7 ,mistake1 inadvertence1 surprise1 or excusable neglect4 7,b7 ,newly discovered evidence that1 with reasonable diligence1 could not have been discovered in time to move for a new trial under rules prescribed by the ,court and that would have a reasonable likelihood of changing the outcome4 7,c7 ,fraud 7whether previously called intrinsic or extrinsic71 misrepresentation1 or misconduct by an opposing party4 7,d7 ,the judgment is void4 7,e7 ,any other circumstance where justice so requires4 7#c7 ,timing and effect of the motion 7,a7 ,timing ,a motion under paragraph 7#b7-- 7i7 must be made within a reasonable time1 and 7ii7 in the case of a reason described in subparagraphs 7,a71 7,b71 or 7,c71 not later than #a year after the entry of the judgment or order4 7,b7 ,effect on finality ,while pending1 any such motion does not affect the judgment's finality or suspend its operation4 7#d7 ,other powers to grant relief ,this subsection shall not limit the ,tax ,court's power to set aside a judgment for fraud on the ,tax ,court4 7#e7 ,court of appeals jurisdiction ,if the ,tax ,court provides relief from a judgment or order that is otherwise final under this section1 either or both parties may obtain review of such relief by filing a notice of appeal under this subchapter within #ij days of the ,court's judgment or order directing such relief4 4 #cjc4 ,authorization of special trial judges to hear additional cases and address contempt 7a7 ,consent to assignment ,section #gddc;,a7b7 is amended by striking and at the end of paragraph 7#f71 by redesignating paragraph 7#g7 as paragraph 7#h71 and by inserting after paragraph 7#f7 the following new paragraph3 7#g7 upon the consent of the parties1 and pursuant to rules promulgated by the ,tax ,court1 any proceeding not described in paragraphs 7#a7 through 7#f71 and 4 7b7 ,authorizing special trial judge ,section #gddc;,a7c7 is amended by striking or 7#f7 and inserting 7#f71 or 7#g74 7c7 ,contempt authority ,section #gddc;,a is amended by adding at the end the following new subsection3 7f7 ,incidental powers ,a special trial judge appointed under this section shall have the independent power to punish for contempt of the authority of the ,tax ,court as provided in section #gdef7;c71 except the sentence imposed by such a special trial judge for any contempt shall not exceed the penalties for a ,class ,c misdemeanor as set forth in sections #cega7;b77#f7 and #ceha7;b77#h7 of title #ah1 ,united ,states ,code4 ,this subsection shall not be construed to limit the authority of a special trial judge to order sanctions under any other statute or any rule of the ,tax ,court prescribed pursuant to section #gdec4 4 7d7 ,effective date ,the amendments made by subsections 7a7 and 7b7 shall take effect on the date the ,united ,states ,tax ,court adopts rules implementing the consent procedures of section #gddc;,a4 #cjd4 ,disqualification of judges and special trial judges 7a7 ,in general ,part ,,ii of subchapter ,c of chapter #gf is amended by adding at the end the following new section3 #gdfg4 ,disqualification of judge or special trial judge ,section #dee of title #bh1 ,united ,states ,code1 shall apply to judges1 special trial judges1 and proceedings of the ,tax ,court4 4 7b7 ,clerical amendment ,the table of sections for such part is amended by adding at the end the following new item3 ,sec4 #gdfg4 ,disqualification of judge or special trial judge4 4 #cje4 ,notice and review with respect to multi-year bans on claiming credits 7a7 ,notice 7#a7 ,in general ,section #fbab7;a7 is amended-- 7,a7 by striking ,if the and inserting the following3 7#a7 ,notice ,if the 1 7,b7 by striking ,such notice shall include a notice and inserting the following3 7#b7 ,matters included ,such notice shall include-- 7,a7 a notice 1 7,c7 by striking period at the end of the second sentence and inserting 1 and1 and 7,d7 by adding at the end the following new subparagraph3 7,b7 in any case in which such deficiency for a taxable year is attributable to the denial of a credit under section #bd1 #be;,a1 or #cb1 a statement-- 7i7 identifying the credit or credits which are denied and providing the grounds for each such denial1 7ii7 informing the taxpayer that1 unless the denial is overturned on appeal1 the taxpayer will not be able to claim such credit for any subsequent taxable year unless the taxpayer provides information required by the ,secretary to demonstrate eligibility for the credit1 and 7iii7 in any case in which the ,secretary has made a determination to impose a disallowance period under section #bd7;g77#a71 #be;,a7b77#d77;,a71 or #cb7k77#a71 providing the grounds for such disallowance period 7and the length of the disallowance period unless overturned on appeal74 4 7#b7 ,effective date ,the amendments made by this subsection shall apply to notices mailed #cf months after the date of enactment of this ,act4 7b7 ,authority of the tax court 7#a7 ,in general ,section #fbad is amended by redesignating subsection 7e7 as subsection 7f7 and by inserting after subsection 7d7 the following new subsection3 7e7 ,jurisdiction with respect to multi-,year bans with respect to certain credits 7#a7 ,in general ,the ,tax ,court shall have jurisdiction-- 7,a7 to redetermine the imposition of any disallowance period with respect to any credit under section #bd1 #be;,a1 or #cb for the taxable year in which such disallowance period was imposed if the deficiency relates to such taxable year1 and 7,b7 to determine whether any such disallowance period should be imposed if claim therefor is asserted by the ,secretary in the answer or an amended answer filed in accordance with the rules of the ,tax ,court4 7#b7 ,disallowance period ,for purposes of this subsection1 the term disallowance period has the meaning given such term under section #fgea7;d74 4 7#b7 ,effective date ,the amendments made by this subsection apply to petitions filed on or after the date of enactment of this ,act4 7#c7 ,transition rule for review of previously imposed disallowance periods 7,a7 ,in general ,in the case of any deficiency which is attributable to an entry on the return claiming a credit under section #bd1 #be;,a1 or #cb of the ,internal ,revenue ,code of #aihf for a taxable year in a disallowance period described in subparagraph 7,b71 the ,tax ,court shall have jurisdiction to redetermine whether the disallowance period was properly imposed4 7,b7 ,disallowance period described ,a disallowance period is described in this subparagraph if the notice of the deficiency under section #fbab of such ,code for the taxable year with respect to which the determination to impose the disallowance period was made-- 7i7 did not include the grounds for such disallowance period1 and 7ii7 was mailed before the date that is #cf months after the date of the enactment of this ,act4 7,c7 ,disallowance period ,for purposes of this paragraph1 the term disallowance period has the meaning given such term under section #fgea7;d7 of the ,internal ,revenue ,code of #aihf 7as added by this ,act74 7,d7 ,refunds ,notwithstanding section #feab7;b77#a7 of the ,internal ,revenue ,code of #aihf1 in the case of a petition with respect to a disallowance period described in subparagraph 7,b71 the ,tax ,court shall have jurisdiction to determine the amount of an overpayment for any taxable year in the disallowance period1 and such amount shall1 notwithstanding section #feaa1 when the decision of the ,tax ,court has become final1 be credited or refunded to the taxpayer4 ,if a notice of appeal in respect of the decision of the ,tax ,court is filed under section #gdhc of such ,code1 the ,secretary of the ,treasury 7or the ,secretary's delegate7 is authorized to refund or credit the overpayment determined by the ,tax ,court to the extent the overpayment is not contested on appeal4 7c7 ,burden of production 7#a7 ,in general ,section #gdia7;c7 is amended-- 7,a7 by striking ,notwithstanding and inserting the following3 7#a7 ,in general ,notwithstanding 4 7,b7 by striking with respect to the liability and inserting with respect to-- 7,a7 the liability 1 7,c7 by striking the period after title and inserting 1 and1 7,d7 by adding at the end the following new paragraph3 7,a7 the application of any disallowance period 7as defined in section #fgea7;d77 to any individual4 1 and 7,e7 by adding at the end the following new paragraph3 7#b7 ,standard of proof for certain disallowance periods ,in the case of any court proceeding with respect to any disallowance period described in section #bd7;g77#a77;,b77ii71 #be;,a7b77#d77;,a77ii77,i71 or #cb7k77#a77;,b77i71 the standard of proof shall be the same standard as required in a proceeding under section #gded7;a74 4 7#b7 ,effective date ,the amendments made by this subsection shall apply to court proceedings beginning after the date that is #cf months after the date of the enactment of this ,act in connection with disallowance periods 7as defined in section #fgea7;d7 of the ,internal ,revenue ,code of #aihf1 as added by this ,act7 determined after such date4 7d7 ,modification of disallowance period 7#a7 ,child tax credit ,section #bd7;g77#a7 is amended-- 7,a7 in subparagraph 7,b71 by striking for which there was a final determination that the taxpayer's claim of credit under this section was each place it appears in clauses 7i7 and 7ii7 and inserting for which a notice of deficiency has been sent under section #fbab7;a7 which notifies the taxpayer that the taxpayer's claim of credit under this section was denied1 or a determination that has become final under section #gdha has been made by the ,tax ,court to deny such claim11 and 7,b7 by adding at the end the following new subparagraph3 7,c7 ,allowance of previously denied credits after ,tax ,court consideration ,notwithstanding subparagraphs 7,a7 and 7,b71 a taxable year shall not be treated as a taxable year in the disallowance period if the ,tax ,court determines that the disallowance period was not properly imposed for such year pursuant to section #fbad7;e74 4 7#b7 ,american opportunity tax credit ,section #be;,a7b77#d77;,a7 is amended-- 7,a7 in clause 7ii71 by striking for which there was a final determination that the taxpayer's claim of the ,american ,opportunity ,credit under this section was each place it appears in subclauses 7,i7 and 7,,ii7 and inserting for which a notice of deficiency has been sent under section #fbab7;a7 which notifies the taxpayer that the taxpayer's claim of credit under this section was denied1 or a determination that has become final under section #gdha has been made by the ,tax ,court to deny such claim11 and 7,b7 by adding at the end the following new clause3 7iii7 ,allowance of previously denied credits after ,tax ,court consideration ,notwithstanding clauses 7i7 and 7ii71 a taxable year shall not be treated as a taxable year in the disallowance period if the ,tax ,court determines that the disallowance period was not properly imposed for such year pursuant to section #fbad7;e74 4 7#c7 ,earned income tax credit ,section #cb7k77#a7 is amended-- 7,a7 in subparagraph 7,b71 by striking for which there was a final determination that the taxpayer's claim of credit under this section was each place it appears in clauses 7i7 and 7ii7 and inserting for which a notice of deficiency has been sent under section #fbab7;a7 which notifies the taxpayer that the taxpayer's claim of credit under this section was denied1 or a determination that has become final under section #gdha has been made by the ,tax ,court to deny such claim11 and 7,b7 by adding at the end the following new subparagraph3 7,c7 ,allowance of previously denied credits after ,tax ,court consideration ,notwithstanding subparagraphs 7,a7 and 7,b71 a taxable year shall not be treated as a taxable year in the disallowance period if the ,tax ,court determines that the disallowance period was not properly imposed for such year pursuant to section #fbad7;e74 4 7#d7 ,suspension of running of limitations period filing of a claim for credit or refund ,section #feaa7;d7 is amended by adding at the end the following new paragraph3 7#i7 ,special rules relating to disallowance periods ,the running of the periods described in subsections 7a7 and 7b77#b7 with respect to any claim for a credit allowed under section #bd1 #be;,a1 or #cb for any taxable year in a disallowance period 7as defined in section #fgea7;d77 shall be suspended during any period in which the imposition of such disallowance period is pending before the ,tax ,court4 4 7#e7 ,effective date 7,a7 ,in general ,the amendments made by paragraphs 7#a71 7#b71 and 7#c7 shall apply to-- 7i7 taxable years beginning after the date that is #cf months after the date of the enactment of this ,act1 and 7ii7 disallowance periods 7as defined in section #fgea7;d7 of the ,internal ,revenue ,code of #aihf1 as added by this ,act7 in taxable years beginning on or before such date if the notice of deficiency for the taxable year with respect to which the determination to impose such disallowance period was made was sent after such date4 7,b7 ,suspension of running of limitations period ,the amendment made by paragraph 7#d7 shall apply to petitions filed after the date of the enactment of this ,act4 #cjf4 ,authorization of de novo review of innocent spouse relief by the ,tax ,court and other courts 7a7 ,review ,section #fjae7;e77#g7 is amended by striking by the ,tax ,court and shall be based upon and all that follows and inserting a period4 7b7 ,effective date ,the amendment made by this section shall apply to petitions and requests filed or pending on or after the date of the enactment of this ,act4 7c7 ,no inference ,nothing in the amendment made by this section shall be construed to limit the authority or jurisdiction of the ,tax ,court or any other court to grant relief under section #fjae of the ,internal ,revenue ,code of #aihf or to review any relief granted under such section4 #cjg4 ,clarification of certain court filing deadlines 7a7 ,in general 7#a7 ,treatment of deadlines ,section #gdea is amended by redesignating subsection 7b7 as subsection 7c7 and by inserting after subsection 7a7 the following new subsection3 7b7 ,treatment of deadlines for certain petitions ,the deadlines for filing petitions under sections #fjae7;e77#a77;,a71 #fbac7;a71 and #fccj7;d77#a77;,a7 shall be considered nonjurisdictional claims-processing rules subject to waiver1 forfeiture1 estoppel and equitable tolling4 4 7#b7 ,conforming amendment ,section #gdei7;d7 is amended-- 7,a7 by striking ,if a petition and inserting the following3 7#a7 ,in general ,if a petition 1 7,b7 by inserting 1 unless the dismissal is for lack of jurisdiction after determined by the ,secretary1 7,c7 by striking 1 or unless the dismissal is for lack of jurisdiction1 and 7,d7 by adding at the end the following new paragraph3 7#b7 ,exception ,paragraph 7#a7 shall not apply with respect to any dismissal which is solely based on a decision of the ,tax ,court that equitable tolling does not apply to extend the deadline for filing a petition4 4 7b7 ,tolling of time in certain cases ,section #gdea7;c71 as redesignated by subsection 7a71 is amended by striking date and inserting day 7in whole or in part74 7c7 ,effective date ,the amendments made by this section shall apply to cases pending on or after the date of the enactment of this ,act4 7d7 ,no inference ,the amendments made by subsection 7a7 shall not be construed to create any inference with respect to the treatment of-- 7#a7 any case brought under section #fjae7;e77#a77;,a71 #fbac7;a71 or #fccj7;d77#a77;,a7 of the ,internal ,revenue ,code of #aihf for which there is a final determination by the ,tax ,court before the date of the enactment of this ,act1 or 7#b7 any other petition filed with the ,tax ,court under any other provision of the ,internal ,revenue ,code of #aihf before1 on1 or after such date4 #cjh4 ,clarification of ,tax ,court jurisdiction to determine tax liability in collection due process appeals 7a7 ,in general ,section #fccj7;c77#b77;,b7 is amended by inserting in the ,tax ,court 7other than through a suit for a refund under section #gddb7;b77 after otherwise have an opportunity to dispute such tax liability4 7b7 ,underlying tax liability ,section #fccj7;c77#d7 is amended by striking ,an issue may not be raised and inserting ,an issue which is not related to the amount or existence of the underlying tax liability may not be raised4 #cji4 ,authorization of the ,tax ,court to issue refunds in collection due process cases 7a7 ,in general ,section #fccj7;d77#a7 is amended-- 7#a7 by striking ,the person may and inserting the following3 7,a7 ,in general ,the person may 1 7#b7 by inserting and1 unless a challenge was precluded under subsection 7c71 with respect to the determination of any overpayments of tax for the taxable periods or events at issue in the determination after matter1 and 7#c7 by adding at the end the following new subparagraphs3 7,b7 ,determination and enforcement of overpayments ,rules similar to the rules of paragraphs 7#a7 and 7#b7 of section #feab7;b7 shall apply for purposes of this paragraph4 7,c7 ,limitation on amount of credit or refund 7i7 ,in general ,in the case of any petition under subparagraph 7,a71 no credit or refund shall be allowed or made of any portion of the tax unless the ,tax ,court determines as part of its decision that such portion was paid-- 7,i7 after the notice described in subsection 7a77#a7 or section #fcbj7;a77#a7 7as the case may be7 was given1 7,,ii7 within the period which would be applicable under section #feaa7;b77#b71 7c71 or 7d71 if1 on the date the notice described in subsection 7a77#a7 or section #fcbj7;a77#a7 7as the case may be7 was given1 a claim had been filed 7whether or not filed7 stating the grounds upon which the ,tax ,court finds that there is an overpayment1 or 7,,iii7 within the period which would be applicable under section #feaa7;b77#b71 7c71 or 7d71 in respect of any claim for refund filed within the applicable period specified in section #feaa and before the date the notice described in subsection 7a77#a7 or section #fcbj7;a77#a7 7as the case may be7 was given-- 7aa7 which had not been disallowed before that date1 7bb7 which had been disallowed before that date and in respect of which a timely suit for refund could have commenced as of that date1 or 7cc7 in respect of which a suit for refund had been commenced before that date and within the period specified in section #fecb4 ,in a case described in subclause 7,,ii7 where the date the notice described in subsection 7a77#a7 or section #fcbj7;a77#a7 7as the case may be7 is given is during the third year after the due date 7determined without regard to any extensions7 for filing the return of tax and no return was filed before such date1 the applicable period under subsections 7a7 and 7b77#b7 of section #feaa shall be #c years4 7ii7 ,date notice was given ,for purposes of this subparagraph-- 7,i7 if notice was given under subsection 7a77#b7 or section #fcbj7;a77#b7 by mail1 the date the notice was given shall be the date such notice was mailed1 and 7,,ii7 if notice was given under subsection 7a77#b7 or #fcbj7;a77#b7 by leaving such notice at the dwelling or usual place of business of the person1 the date the notice was given shall be the date such notice was left4 4 7b7 ,conforming amendment ,section #fccj7;e77#a7 is amended by inserting section #feaa 7relating to limitations on credit or refund71 after section #fejb 7relating to collection after assessment74 7c7 ,effective date ,the amendments made by this section shall apply to cases pending on or after the date of the enactment of this ,act4 #caj4 ,authorization of the ,tax ,court to hear suits for refunds or credits 7a7 ,in general ,section #gddb is amended-- 7#a7 by striking ,the ,tax ,court and inserting the following3 7a7 ,in general ,the ,tax ,court 1 and 7#b7 by adding at the end the following new subsection3 7b7 ,actions for refunds 7#a7 ,jurisdiction 7,a7 ,in general ,in addition to any other court authorized by law1 the ,tax ,court shall1 subject to section #gdbb1 have jurisdiction over any action1 not exceeding the applicable amount1 for the recovery of any internal revenue tax alleged to have been erroneously or illegally assessed or collected1 or any penalty claimed to have been collected without authority or of any sum alleged to have been excessive or in any manner wrongfully collected under the internal revenue laws to the same extent as the district courts of the ,united ,states4 7,b7 ,applicable amount ,for purposes of this paragraph1 the applicable amount means-- 7i7 #b1jjj1jjj for any one taxable year1 in the case of taxes imposed by subtitle ,a1 7ii7 #b1jjj1jjj1 in the case of the tax imposed by chapter #aa1 7iii7 #b1jjj1jjj for any one calendar year1 in the case of the tax imposed by chapter #ab1 7iv7 #b1jjj1jjj for any #a taxable period 7or1 if there is no taxable period1 taxable event7 in the case of any tax imposed by subtitle ,c1 ,d1 or ,e1 and 7v7 #b1jjj1jjj1 in the case of any other amount collected4 7#b7 ,further notice of deficiency ,if the ,secretary prior to the hearing of a suit brought by a taxpayer under paragraph 7#a7 mails to the taxpayer a notice that a deficiency has been determined in respect of the tax which is the subject matter of the taxpayer's suit1 the proceedings in the taxpayer's suit shall be stayed during the period of time in which the taxpayer may file a petition with the ,tax ,court for a redetermination of the asserted deficiency1 and for #fj days thereafter4 ,if the taxpayer files such a petition with the ,tax ,court1 such petition shall be consolidated with the suit brought under paragraph 7#a74 4 7b7 ,conforming amendments 7#a7 ,section #gdbb7k7 is amended by adding at the end the following new paragraph3 7#e7 ,for jurisdiction of the ,tax ,court1 see section #gddb7;b74 4 7#b7 ,section #gdhb7;b77#a7 is amended by striking or at the end of subparagraph 7,f71 by striking the period at the end of subparagraph 7,g7 and inserting 1 or1 and by adding at the end the following new subparagraph3 7,h7 in the case of a petition under section #gddb7;b7-- 7i7 the legal residence of the petitioner if the petitioner is an individual1 and 7ii7 the principal place of business or principal office or agency if the petitioner is an entity other than an individual4 4 7#c7 ,section #acdf7;a7 of title #bh1 ,united ,states ,code1 is amended-- 7,a7 in the matter preceding paragraph 7#a71 by striking 1 concurrent with the ,united ,states ,court of ,federal ,claims11 7,b7 in paragraph 7#a71 by striking ,any and inserting ,concurrent with the ,united ,states ,court of ,federal ,claims and the ,tax ,court1 any1 and 7,c7 in paragraph 7#b71 by striking ,any and inserting ,concurrent with the ,united ,states ,court of ,federal ,claims1 any4 7c7 ,effective date ,the amendments made by this section shall apply to actions filed after the date that is #ab months after the date of the enactment of this ,act4 #caa4 ,authorization to use deficiency procedures for certain penalties 7a7 ,in general ,chapter #fc is amended by adding at the end the following new subchapter3 ,d ,treatment of penalties ,sec4 #fbea4 ,assessment of certain penalties under deficiency procedures4 #fbea4 ,assessment of certain penalties under deficiency procedures 7a7 ,in general ,the ,secretary may treat the amount of any applicable penalty as a deficiency of tax to which subchapter ,b applies 7and such deficiency may be assessed as provided in such subchapter74 7b7 ,applicable penalty ,for purposes of this section-- 7#a7 ,in general ,the term applicable penalty means any penalty imposed under this title which the ,secretary identifies in guidance as not otherwise assessable 7determined without regard to this section74 7#b7 ,exception ,such term shall not include any penalty expressly required to be recovered in a civil or criminal action4 7c7 ,special rules 7#a7 ,limitation on assessment after notice of deficiency ,if the ,secretary sends a notice of deficiency with respect to an applicable penalty as provided in section #fbab1 the ,secretary may not thereafter1 except as otherwise provided in sections #fbac and #fbae1 assess such penalty for the same taxable period or with respect to the same act 7or failure to act7 occurring before the date of such notice unless such notice has been rescinded as provided in section #fbab7;d74 7#b7 ,additional deficiency letters restricted ,if the ,secretary has mailed to the taxpayer a notice of deficiency as provided in section #fbab7;a7 with respect to an applicable penalty1 and the taxpayer files a petition with the ,tax ,court within the time prescribed in section #fbac7;a71 the ,secretary shall have no right to determine any additional deficiency with respect to an act 7or failure to act7 to which such petition relates4 7#c7 ,exceptions ,paragraphs 7#a7 and 7#b7 shall not apply to any penalty imposed under section #fjch7;b77#b71 #fjch;,a7d77#b71 or #fjch;,d7d77#b74 7#d7 ,coordination with other provisions ,any applicable penalty treated as a deficiency under this section shall be subject to the requirements of sections #fbab1 #fbac1 #fbad1 #fbae1 #fejc1 and1 as applicable1 #fgea7;b74 4 7b7 ,conforming amendment ,the table of subchapters for chapter #fc is amended by adding at the end the following new item3 ,,subchapter ,d--,treatment of penalties 4 7c7 ,no inference ,nothing in the amendments made by this section shall be construed to create any inference with respect to the treatment of any applicable penalty 7as defined in section #fbea7;b7 of the ,internal ,revenue ,code of #aihf1 as added by subsection 7a77 before the date of the enactment of this ,act4 #cab4 ,authorization to allow claims for refund in certain cases where full tax not paid 7a7 ,in general ,section #gdbb1 as amended by this ,act1 is amended by redesignating subsection 7k7 as subsection 7l7 and by inserting after subsection 7j7 the following new subsection3 7k7 ,special rule for actions where there is an agreement in effect with the taxpayer under section #faei or when the taxpayer is in currently not collectible status 7#a7 ,in general ,the district courts of the ,united ,states1 the ,united ,states ,court of ,federal ,claims1 and the ,tax ,court shall not fail to have jurisdiction over any applicable action brought by a taxpayer to determine the correct amount of tax liability of such taxpayer solely because the full amount of such liability has not been paid4 7#b7 ,applicable action ,for purposes of this subsection1 the term applicable action means any action to determine the correct amount of the tax liability of such taxpayer 7or for any refund with respect thereto7 with respect to any amount if1 as of the date such action is filed-- 7,a7 such amount-- 7i7 is the subject of an agreement under section #faei for which all installments the due date for which is on or before the date the action is filed have been paid1 or 7ii7 has been determined by the ,secretary to be not collectible 7within the meaning of section #fcdc7;e771 and 7,b7 there is no pending procedural period with respect to such amount4 7#c7 ,pending procedural period ,for purposes of paragraph 7#b77;,b71 there is a pending procedural period with respect to an amount if-- 7,a7 a notice has been provided under section #fcbj or #fccj with respect to such amount1 and 7,b7 7i7 the time period under such notice for requesting a hearing has not expired1 7ii7 a hearing has been requested1 or 7iii7 the period under section #fccj7;d77#a7 for appealing any determination of all issues considered at such a hearing has not expired4 7#d7 ,permissive dismissal 7,a7 ,request for dismissal ,the ,united ,states 7or the ,secretary1 in the case of a case in the ,tax ,court7 may request the dismissal of an applicable action if the taxpayer is no longer in compliance with an installment agreement under section #faei or is no longer in currently not collectible status 7within the meaning of section #fcdc7;e774 7,b7 ,court action ,in any case in which there is a request for dismissal under subparagraph 7,a71 the court may1 with or without taking any evidence or holding a hearing1 dismiss the action with leave to refile when either the full amount of such liability has been paid or the conditions in paragraph 7#b7 are met at the time of refiling4 ,in deciding whether to dismiss the action1 the court may consider the extent to which the action has proceeded1 the extent to which full payment has been made1 any burden that may result to the taxpayer1 the ,united ,states1 the ,secretary1 or the court from such dismissal 7including reasons the taxpayer is no longer in compliance with an installment agreement under section #faei71 and any other reason relating to the policy of the full payment rule4 ,a dismissal under this paragraph shall not be reviewed by any other court4 7#e7 ,prohibition on collection of disallowed liability ,if the court redetermines under paragraph 7#a7 the correct amount of tax liability of the taxpayer1 no part of such liability which is disallowed by a decision of such court which has become final may be collected by the ,secretary1 and amounts paid in excess of the amount determined by the court as correctly paid shall be refunded4 4 7b7 ,effective date ,the amendments made by this section shall apply to actions filed on or after the date that is #ab months after the date of the enactment of this ,act4 #cac4 ,adjustment of threshold for small disputes 7a7 ,in general ,section #gdfc is amended-- 7#a7 by striking #ej1jjj each place it appears in subsections 7a7 and 7f7 and inserting #ajj1jjj1 and 7#b7 by adding at the end the following new subsection3 7g7 ,inflation adjustment 7#a7 ,in general ,in the case of any petition or appeal filed in a calendar year beginning after #bjbf1 each of the #ajj1jjj amounts in subsections 7a7 and 7f7 shall be increased by an amount equal to-- 7,a7 such dollar amount1 multiplied by 7,b7 the cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year1 determined by substituting calendar year #bjbe for calendar year #bjaf in subparagraph 7,a77ii7 thereof4 7#b7 ,rounding ,if any increase determined under paragraph 7#a7 is not a multiple of #a1jjj1 such increase shall be rounded to the next lowest multiple of #a1jjj4 4 7b7 ,conforming amendments 7#a7 ,the heading for section #gdfc is amended by striking ,disputes involving #ej1jjj or less and inserting ,small disputes4 7#b7 ,the item relating to section #gdfc in the table of section for part ,,ii of subchapter ,c of chapter #gf is amended by striking ,disputes involving #ej1jjj or less and inserting ,small disputes4 7c7 ,effective date ,the amendments made by this section shall apply to proceedings commencing after the date of the enactment of this ,act4 ,,iv ,office of the ,taxpayer ,advocate #dja4 ,,nta authorization to direct hire attorneys ,section #ghjc7;c77#b77;,d7 is amended-- 7#a7 in clause 7i7-- 7,a7 in subclause 7,i71 by striking and at the end1 7,b7 in subclause 7,,ii71 by striking the period at the end and inserting 2 and1 and 7,c7 by adding at the end the following3 7,,iii7 appoint counsel in the ,office of the ,taxpayer ,advocate to report directly to the ,national ,taxpayer ,advocate or delegate thereof4 1 and 7#b7 by adding at the end the following3 7iii7 ,counsel ,for purposes of clause 7i77,,iii7-- 7,i7 the ,national ,taxpayer ,advocate may utilize direct hire authority to recruit and appoint qualified applicants1 without regard to any preference requirements1 7,,ii7 any counsel appointed pursuant to such clause shall not report to the ,chief ,counsel for the ,internal ,revenue ,service and shall not represent the ,government in litigation1 7,,iii7 any legal interpretation of counsel appointed pursuant to such clause shall not be binding on the ,secretary1 and 7,,iv7 pursuant to section #cja7;f77#b7 of title #ca1 ,united ,states ,code1 and subsection 7b77#b77;,a71 the ,chief ,counsel for the ,internal ,revenue ,service shall continue to provide advice to the ,national ,taxpayer ,advocate and the ,office of the ,taxpayer ,advocate4 4 #djb4 ,,nta authorization to make personnel decisions 7a7 ,in general ,section #ghjc7;c77#b77;,d77i77,,ii7 is amended by striking any employee of any local office of a taxpayer advocate described in subclause 7,i7 and inserting any officer or employee of the ,office of the ,taxpayer ,advocate4 7b7 ,effective date ,the amendment made by this section shall take effect on the date which is #ab months after the date of enactment of this ,act4 #djc4 ,access to ,internal ,revenue ,service information1 legal advice1 and meetings 7a7 ,in general ,section #ghjc7;c7 is amended by adding at the end the following new paragraph3 7#f7 ,access to information and meetings 7,a7 ,in general ,upon request1 the ,commissioner shall provide the ,office of the ,taxpayer ,advocate with access to any of the following3 7i7 ,in the case of any request made by a taxpayer for assistance by the ,office of the ,taxpayer ,advocate which is open and pending-- 7,i7 any return or return information 7as such terms are defined in section #fajc7;b77 which the ,national ,taxpayer ,advocate determines is necessary to assist such taxpayer1 7,,ii7 any legal advice provided by the staff of the ,office of ,chief ,counsel to any employee of the ,internal ,revenue ,service 7including any legal advice prepared in contemplation of litigation7 which the ,national ,taxpayer ,advocate determines is necessary to assist such taxpayer1 regardless of whether such legal advice cannot be disclosed to such taxpayer1 and 7,,iii7 any meeting between such taxpayer and any employee of the ,internal ,revenue ,service4 7ii7 ,to the extent necessary to perform a full and substantive analysis included in any report described in paragraph 7#b77;,b7-- 7,i7 any relevant document1 data1 or statistical information1 and 7,,ii7 any legal advice provided by the staff of the ,office of the ,chief ,counsel to any employee of the ,internal ,revenue ,service 7including any legal advice prepared in contemplation of litigation74 7iii7 ,legal advice from the staff of the ,office of ,chief ,counsel on any matter or issue4 7,b7 ,deadline ,access to any information1 advice1 or meeting described in subparagraph 7,a7 shall be provided by the ,commissioner not later than-- 7i7 the date which is #b weeks after the date on which a written request submitted by the ,office of the ,taxpayer ,advocate has been received by the ,commissioner1 or 7ii7 such date as is otherwise agreed to by the ,commissioner and the ,office of the ,taxpayer ,advocate4 7,c7 ,meetings ,for purposes of subparagraph 7,a77i77,,iii71 the ,commissioner shall be deemed to have satisfied the requirement under such subparagraph if the ,commissioner has extended an invitation to attend the meeting to the ,office of the ,taxpayer ,advocate1 without regard to whether such an invitation was declined by any employee of the ,office of the ,taxpayer ,advocate4 7,d7 ,privilege ,any access provided to the ,office of the ,taxpayer ,advocate pursuant to this paragraph with respect to information or legal advice from the staff of the ,office of ,chief ,counsel shall have no effect on any privilege which otherwise applies to such information or legal advice4 4 7b7 ,annual reports ,section #ghjc7;c77#b77;,b77ii7 is amended-- 7#a7 in subclause 7,,xii71 by striking and at the end1 7#b7 in subclause 7,,xiii71 by striking the period at the end and inserting 2 and1 and 7#c7 by adding at the end the following new subclause3 7,,xiv7 identify any failure by the ,commissioner to provide access to any information1 advice1 or meeting described in subparagraph 7,a7 of paragraph 7#f7 by the date required under subparagraph 7,b7 of such paragraph4 4 7c7 ,effective date ,the amendment made by this section shall take effect on the date of enactment of this ,act4 #djd4 ,repeal of limitation period suspension for taxpayers seeking assistance from ,,tas 7a7 ,in general ,section #ghaa is amended-- 7#a7 by striking subsection 7d71 and 7#b7 by redesignating subsections 7e7 through 7g7 as subsections 7d7 through 7f71 respectively4 7b7 ,conforming amendment ,section #fcjf7k77#b7 is amended by striking section #ghaa7;g7 and inserting section #ghaa7;f74 7c7 ,effective date ,the amendments made by this section shall take effect on the date of enactment of this ,act4 #dje4 ,operations to assist taxpayers experiencing hardships during lapse in appropriations ,notwithstanding section #acda7;a7 of title #ca1 ,united ,states ,code1 during any lapse in appropriations1 the ,commissioner and the ,office of the ,taxpayer ,advocate may incur obligations in advance of appropriations for such amounts as may be necessary-- 7#a7 to assist any taxpayer who is or may be experiencing an economic hardship 7within the meaning of section #fcdc7;a77#a77;,d7 of the ,internal ,revenue ,code of #aihf7 as a result of any action or inaction by the ,internal ,revenue ,service1 and 7#b7 for the purpose of complying with any ,taxpayer ,assistance ,order issued pursuant to section #ghaa of such ,code4 ,v ,tax ,return ,preparers #eja4 ,penalties for tax return preparers who improperly alter returns 7a7 ,in general ,paragraph 7#a7 of section #ffif7;e7 is amended to read as follows3 7#a7 ,return ,the term return means-- 7,a7 any return of any tax imposed by this title1 7,b7 any administrative adjustment request under section #fbbg1 7,c7 any partnership adjustment tracking report under section #fbbf7;b77#d77;,a71 and 7,d7 any other document purporting to be a return1 request1 or report described in subparagraphs 7,a7 through 7,c74 4 7b7 ,effective date ,the amendment made by this section shall take effect on the date of enactment of this ,act4 #ejb4 ,penalties for failure to provide valid preparer identification numbers 7a7 ,in general ,section #ffie is amended-- 7#a7 by striking subsection 7c7 and inserting the following3 7c7 ,failure ,to furnish valid identifying number 7#a7 ,in general 7,a7 ,penalty ,any person who is a tax return preparer with respect to any return or claim for refund and who fails to furnish an identifying number which complies with section #faji7;a77#d77;,a7 with respect to such return or claim shall pay a penalty of #bej for such failure4 7,b7 ,non-compliance ,for purposes of this paragraph1 an identifying number shall be deemed to not comply with section #faji7;a77#d77;,a7 if such identifying number-- 7i7 is assigned to another person1 7ii7 does not exist1 7iii7 is inactive or expired1 7iv7 has been withdrawn1 7v7 is suspended or has been revoked1 or 7vi7 is otherwise invalid for use by the tax return preparer4 7#b7 ,exception ,the penalty imposed under paragraph 7#a7 shall not apply if it is shown that such failure is due to reasonable cause and not due to willful neglect4 7#c7 ,limitation ,the maximum penalty imposed under this subsection on any person with respect to documents filed during any calendar year shall not exceed #ge1jjj4 1 7#b7 by redesignating subsection 7h7 as subsection 7i71 7#c7 by inserting after subsection 7g7 the following new subsection3 7h7 ,use of invalid or appropriated electronic filing identification number 7#a7 ,in general ,any person who is an electronic return originator with respect to any return or claim for refund who fails to use1 with respect to such return or claim1 an electronic filing identification number which is assigned to such person by the ,secretary1 shall pay a penalty of #bej for such failure1 unless it is shown that such failure is due to reasonable cause and not due to willful neglect4 7#b7 ,definitions ,for purposes of this subsection-- 7,a7 ,electronic return originator 7i7 ,in general ,the term electronic return originator means a person who originates the electronic submission of #a or more returns or claims for refund on behalf of other taxpayers4 7ii7 ,exceptions ,the term electronic return originator shall not include a person merely because such person originates an electronic submission described in clause 7i7-- 7,i7 by providing services which are limited to typing1 reproduction1 or other mechanical assistance to a person described in such subclause1 7,,ii7 at the direction of an employer 7or of an officer or employee of the employer7 by whom such person is regularly and continuously employed1 7,,iii7 as a fiduciary1 or 7,,iv7 in response to a determination by the ,secretary that directly or indirectly affects the tax liability of a taxpayer4 7,b7 ,electronic filing identification number 7i7 ,in general ,the term electronic filing identification number means an identification number assigned by the ,secretary to a person authorized to file returns in electronic format on behalf of other taxpayers4 7ii7 ,suspension or revocation ,in the case of any electronic filing identification number which has been suspended or revoked by the ,secretary1 such number shall not be deemed valid for purposes of paragraph 7#a74 1 and 7#d7 in subsection 7i77#a71 as redesignated by paragraph 7#b71 by striking and 7g7 and inserting 7g71 and 7h74 7b7 ,modification of definition of tax return preparer ,section #ggja7;a77#cf7 is amended-- 7#a7 by striking subparagraph 7,a7 and inserting the following3 7,a7 ,in general ,the term tax return preparer means any person who prepares for compensation1 or who employs one or more persons to prepare for compensation1 any return of tax imposed by this title1 any document purporting to be a return of tax imposed by this title1 or any claim for refund of tax imposed by this title4 ,for purposes of the preceding sentence1 the preparation of a substantial portion of a return1 document purporting to be a return1 or claim for refund shall be treated as if it were the preparation of such return1 document purporting to be a return1 or claim for refund4 1 and 7#b7 in subparagraph 7,b7-- 7,a7 in clause 7ii71 by striking return or claim for refund and inserting return1 document purporting to be a return1 or claim for refund1 and 7,b7 in clause 7iii71 by striking return or claim for refund and inserting return1 document purporting to be a return1 or claim for refund4 7c7 ,prevention of inadvertent errors involving identifying numbers 7#a7 ,in general ,not later than #ah months after the date of enactment of this ,act1 the ,secretary shall establish a program to improve voluntary compliance with respect to requirements under subsections 7c7 and 7h7 of section #ffie of the ,internal ,revenue ,code of #aihf 7as amended by this section7 and avoid the imposition of penalties under such subsections4 7#b7 ,consultation ,the program described in paragraph 7#a7 shall be established by the ,secretary following consultation with-- 7,a7 the ,national ,taxpayer ,advocate1 7,b7 qualified low-income taxpayer clinics that have received a grant under section #gebf of the ,internal ,revenue ,code of #aihf1 and 7,c7 other relevant stakeholders4 7#c7 ,opportunity to correct ,for purposes of the program described in paragraph 7#a71 the ,secretary shall-- 7,a7 prior to acceptance for processing1 identify-- 7i7 any return or claim for refund which has been electronically submitted and does not include an identifying number which complies with section #faji7;a77#d77;,a7 of the ,internal ,revenue ,code of #aihf1 and 7ii7 any return or claim for refund which has been electronically submitted and does not include an electronic filing identification number 7as defined in section #ffie7;h77#b77;,b7 of such ,code71 and 7,b7 provide an opportunity for the person who submitted such return or claim for refund to avoid imposition of a penalty under subsection 7c7 or 7h7 of section #ffie of such ,code1 as applicable1 if the correct identifying number or electronic filing identification number is provided4 7d7 ,criminal penalty 7#a7 ,in general ,part ,i of subchapter ,a of chapter #ge is amended by adding at the end the following new section3 #gbah4 ,willful failure to provide a valid preparer identification number 7a7 ,in general ,any tax return preparer who1 with respect to any return1 document purporting to be a return1 or claim for refund willfully fails to furnish an identifying number which complies with section #faji7;a77#d77;,a7 with respect to such return or document or willfully furnishes a preparer tax identification number which is described in section #ffie7;c77#a77;,b7 with intent to evade or defeat the application of any requirement under any provision of this title which requires such preparer to obtain and furnish such number1 shall1 in addition to any other penalties provided by law1 be guilty of a felony and1 upon conviction thereof1 shall be fined not more than #ej1jjj 7#ajj1jjj in the case of a corporation71 or imprisoned not more than #c years1 or both1 together with the costs of prosecution4 7b7 ,preparer tax identification number ,in this section1 the term preparer tax identification number means an identifying number described in section #faji7;a77#d77;,a74 4 7#b7 ,clerical amendment ,the table of sections for part ,i of subchapter ,a of chapter #ge is amended by adding at the end the following new item3 ,sec4 #gbah4 ,willful failure to provide a valid preparer identification number4 4 7e7 ,effective date ,the amendments made by this section shall apply to returns or claims for refund filed after the date which is #ah months after the date of enactment of this ,act4 #ejc4 ,penalties for improper tax preparation or misappropriation of refunds 7a7 ,other assessable penalties with respect to the preparation of tax returns for other persons ,section #ffie1 as amended by the preceding provisions of this ,act1 is amended-- 7#a7 in subsection 7a7-- 7,a7 by striking #ej and inserting #bej1 and 7,b7 by striking #be1jjj and inserting #ej1jjj1 7#b7 in subsection 7b7-- 7,a7 by striking #ej and inserting #bej1 and 7,b7 by striking #be1jjj and inserting #ge1jjj1 7#c7 in subsection 7d7-- 7,a7 by striking #ej and inserting #bej1 and 7,b7 by striking #be1jjj and inserting #ej1jjj1 7#d7 in subsection 7e7-- 7,a7 by striking #ej and inserting #bej1 and 7,b7 by striking #be1jjj and inserting #ge1jjj1 7#e7 in subsection 7g71 by striking #ejj and inserting #a1jjj1 and 7#f7 in subsection 7i77#a7-- 7,a7 by striking #bjad and inserting #bjbe1 and 7,b7 by striking calendar year #bjac and inserting calendar year #bjbd4 7b7 ,misappropriation of refunds 7#a7 ,in general ,subsection 7f7 of section #ffie is amended to read as follows3 7f7 ,misappropriation 7#a7 ,in general ,any person who is a tax return preparer who misappropriates any payment made in respect of the taxes imposed by this title which is issued to a taxpayer 7other than the tax return preparer7 shall pay a penalty in an amount determined under paragraph 7#b74 7#b7 ,penalty ,the amount of the penalty determined under this paragraph shall1 with respect to each payment described in paragraph 7#a71 be equal to the greater of-- 7,a7 #a1jjj1 or 7,b7 the full amount of such payment4 7#c7 ,exception ,paragraph 7#a7 shall not apply with respect to the deposit by a bank 7within the meaning of section #eha7 of the full amount of the payment in the taxpayer's account in such bank for the benefit of the taxpayer4 4 7#b7 ,conforming amendment ,section #ffie7;i77#a7 is amended by striking 7f71 and inserting 7f77#b77;,a714 #ejd4 ,authority to deny1 revoke1 or suspend preparer tax identification numbers 7a7 ,in general ,section #faji is amended-- 7#a7 in subsection 7a71 by striking paragraph 7#d7 and inserting the following3 7#d7 ,furnishing identifying number of tax return preparer 7,a7 ,in general ,any return1 claim for refund1 or document purporting to be a return or claim for refund which is prepared by a tax return preparer shall bear such identifying number for securing proper identification of such preparer1 their employer1 or both1 as may be prescribed4 7,b7 ,suspension or revocation ,in the case of any identifying number which has been suspended or revoked by the ,secretary under subsection 7e71 such number shall not be deemed valid for purposes of subparagraph 7,a74 7,c7 ,definitions ,for purposes of this section-- 7i7 ,specified practitioner ,the term specified practitioner means a certified public accountant1 attorney1 or enrolled agent-- 7,i7 who is-- 7aa7 in good standing with the ,department of the ,treasury and ,state licensing authorities1 and 7bb7 authorized to represent persons before the ,department of the ,treasury under section #ccj of title #ca1 ,united ,states ,code1 and 7,,ii7 whose professional license or certification has not been revoked or suspended4 7ii7 ,return2 claim for refund ,the terms return and claim for refund have the respective meanings given to such terms by section #ffif7;e74 1 and 7#b7 by inserting after subsection 7d7 the following3 7e7 ,identifying number of tax return preparer 7#a7 ,in general ,the ,secretary shall maintain a program for administration of preparer tax identification numbers required under subsection 7a77#d71 which shall include restrictions on the issuance of such numbers to any individual other than an individual who-- 7,a7 meets the suitability requirements of paragraph 7#b7 and the education requirements of paragraph 7#c71 7,b7 meets the state program requirements of paragraph 7#d71 or 7,c7 is a specified practitioner4 7#b7 ,demonstration of suitability 7,a7 ,in general ,an individual meets the suitability requirements of this paragraph if such individual has demonstrated to the ,secretary the individual's suitability to be a tax return preparer by-- 7i7 providing such information as the ,secretary determines necessary1 and 7ii7 passing a background check1 including a review by the ,secretary regarding compliance with personal tax obligations4 7,b7 ,conduct demonstrating lack of suitability ,for purposes of subparagraph 7,a71 an individual shall be deemed to have failed to demonstrate their suitability to be a tax return preparer if-- 7i7 any license or registration issued to such individual by a ,state to prepare tax returns has been suspended or revoked by such ,state1 or 7ii7 the ,secretary determines that such individual is described in clauses 7ii7 through 7vi7 of paragraph 7#e77;,a74 7,c7 ,regulations and guidance ,the ,secretary shall issue such regulations or other guidance as the ,secretary determines necessary to carry out the purposes of this paragraph4 7,d7 ,prohibition on examinations ,for purposes of subparagraph 7,a71 except as provided in paragraph 7#c77;,c77iii71 the ,secretary may not require an examination as a prerequisite for the assignment or renewal of a preparer tax identification number4 7,e7 ,grandfathering of prior background checks 7i7 ,in general ,subject to clause 7ii71 for purposes of subparagraph 7,a77ii71 in the case of a class of individuals 7as identified by the ,secretary7 who have passed a background check prior to the date of enactment of this subsection1 the ,secretary may deem such class of individuals to have satisfied the requirement under such subparagraph4 7ii7 ,nonapplication to requirement regarding compliance with personal tax obligations ,clause 7i7 shall not apply with respect to review by the ,secretary under subparagraph 7,a77ii7 regarding compliance with personal tax obligations4 7#c7 ,educational programs 7,a7 ,in general ,an individual shall meet the education requirements of this paragraph if such individual completes a specified number of hours of educational programs on ethics1 professional responsibility1 and tax law 7including recently enacted ,federal income tax legislation7 as required by the ,secretary prior to the assignment or renewal of a preparer tax identification number4 7,b7 ,additional educational requirements for renewal ,the ,secretary may require any individual seeking the renewal of a preparer tax identification number to complete educational programs in addition to those required under subparagraph 7,a74 ,any educational programs required under this subparagraph shall be based on-- 7i7 a review of returns which include the preparer tax identification number of such preparer1 and 7ii7 any errors identified by the ,secretary as part of the review described in clause 7i74 7,c7 ,other requirements ,for purposes of this paragraph1 the ,secretary-- 7i7 may not require a tax return preparer to annually complete more than #ah hours of educational programs1 7ii7 shall require that any educational program include written materials which satisfy such standards as are established by the ,secretary1 7iii7 shall require that any educational program include a method to ensure that the tax return preparer attended the program and sufficiently understood the material presented1 and 7iv7 may not direct any educational program to be completed through a specific provider4 7,d7 ,notice of failure to timely complete requirements ,the ,secretary shall provide any tax return preparer who fails to complete the requirements of this paragraph notice of such failure and a #cj-;day period in which to cure such failure4 7,e7 ,publication of approved courses ,the ,secretary shall publish1 on the public website of the ,internal ,revenue ,service-- 7i7 a list of educational programs which have been determined by the ,secretary to satisfy the requirement under clause 7ii7 of subparagraph 7,c7 7and1 if applicable1 the requirement under clause 7iii7 of such subparagraph71 including the providers of such programs1 and 7ii7 any such requirements as the ,secretary deems necessary to impose with respect to any additional programs required under subparagraph 7,b71 provided that such requirements are similar to the requirements provided under section #ccj of title #ca1 ,united ,states ,code1 or regulations prescribed thereunder4 7#d7 ,exemption 7,a7 ,in general ,subject to subparagraph 7,b71 any individual meets the state program requirements of this paragraph if such individual maintains a valid ,state license or registration issued by a ,state licensing program or ,state registration program 7including ,state tax education councils7 which includes examination1 education1 and background check requirements that are comparable to the suitability requirements described in paragraph 7#b7 and the education requirements described in paragraph 7#c74 7,b7 ,grandfathering of certain programs ,for purposes of subparagraph 7,a71 with respect to determining whether a ,state licensing program or ,state registration program 7including ,state tax education councils7 includes examination1 education1 and background check requirements which are comparable to the suitability requirements described in paragraph 7#b7 and the education requirements described in paragraph 7#c71 such determination shall be made by the ,secretary without regard to whether such requirements were included in such program at the time that such individual was licensed or registered under such program1 provided that such requirements are1 as of the date that such individual requested assignment or renewal of a preparer tax identification number under this subsection1 presently included in such program4 7#e7 ,authority to revoke or suspend preparer tax identification number 7,a7 ,in general ,the ,secretary may suspend or revoke a preparer tax identification number if1 after notice and opportunity for a hearing1 the ,secretary makes a determination that the tax return preparer-- 7i7 has not met-- 7,i7 the suitability requirements of paragraph 7#b7 and the education requirements of paragraph 7#c71 or 7,,ii7 the state program requirements of paragraph 7#d71 7ii7 is incompetent1 as demonstrated by a repeated pattern of errors in returns that were prepared by such preparer which affected the determination of tax liability in such returns1 7iii7 is disreputable1 as demonstrated by-- 7,i7 giving false or misleading information under paragraph 7#b77;,a77i71 7,,ii7 willful failure to comply with personal tax obligations1 7,,iii7 an unpaid tax delinquency-- 7aa7 which is outstanding for greater than #ahj days1 7bb7 which is not being actively disputed1 and 7cc7 which is not-- 7,,aa7 subject to an agreement or compromise under section #faei or #gabb1 7,,bb7 classified as currently not collectible 7within the meaning of section #fcdc7;e771 or 7,,cc7 subject to a pending application for such an agreement1 compromise1 or status1 7,,iv7 revocation or suspension of any license or registration issued by a ,state for the preparation of tax returns1 7,v7 conviction of any criminal offense-- 7aa7 involving dishonesty or breach of trust1 or 7bb7 which is punishable under this title1 7,,vi7 a final determination of liability for a penalty pursuant to section #ffid1 #ffie7;h71 #fgjj1 #fgja1 #fgjb1 or #fgac1 7,,vii7 subject to an injunction under section #gdjg or #gdjh1 or 7,,viii7 any conduct similar to the conduct described in subclauses 7,i7 through 7,,vii71 as provided under regulations prescribed by the ,secretary1 7iv7 in the case of a person subject to regulation under section #ccj of title #ca1 ,united ,states ,code1 or regulations prescribed thereunder1 has violated the requirements under such section or such regulations1 7v7 with intent to defraud1 willfully and knowingly misleads or threatens-- 7,i7 the person whose return or claim for refund is being prepared1 or 7,,ii7 a prospective person seeking for a return or claim for refund to be prepared1 or 7vi7 has engaged in conduct 7as identified in regulations or guidance issued by the ,secretary7 which is similar to the conduct described in clauses 7i7 through 7v7 and that the denial1 suspension1 or revocation of such number would promote compliance with the requirements of this title and effective tax administration4 7,b7 ,monetary penalty 7i7 ,in general ,in addition to1 or in lieu of1 any suspension or revocation of a preparer tax identification number under subparagraph 7,a71 the ,secretary may impose a penalty in any amount not exceeding #e1jjj4 7ii7 ,reduction ,any penalty imposed under clause 7i7 shall be reduced by the amount of any penalty imposed under section #ffid1 #ffie1 #fgjj1 #fgja1 #fgjb1 or #fgac with regard to the same conduct4 7iii7 ,adjustment for inflation 7,i7 ,in general ,in the case of any penalty imposed during any calendar year beginning after #bjbe1 the dollar amount in clause 7i7 shall be increased by an amount equal to-- 7aa7 such dollar amount1 multiplied by 7bb7 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 7,,ii7 ,rounding ,if any amount determined under subclause 7,i7 is not a multiple of #ajj1 such amount shall be rounded to the nearest multiple of #ajj4 7,c7 ,reinstatement ,the ,secretary shall1 through regulations or other guidance1 establish procedures to allow any tax return preparer whose preparer tax identification number has been suspended or revoked pursuant to subparagraph 7,a7 to have such number reissued 7or1 in the case of a suspension1 for such suspension to be terminated71 provided that such preparer demonstrates1 to the satisfaction of the ,secretary1 that-- 7i7 the conduct described in such paragraph which was the basis for such suspension or revocation has been sufficiently addressed or resolved 7such as through completion of educational programs described in paragraph 7#c7 or reinstatement of a license issued by a ,state for the preparation of tax returns71 and 7ii7 effective tax administration would be promoted by terminating the suspension of such number or reissuing such number to such preparer4 7,d7 ,preliminary suspension 7i7 ,in general ,after notice and opportunity to respond1 the ,secretary may suspend the preparer tax identification number of a tax return preparer for a period of not greater than #ahj days if the ,secretary determines that-- 7,i7 such tax return preparer has engaged in any conduct described in clauses 7i7 through 7vi7 of subparagraph 7,a71 and 7,,ii7 such suspension is necessary to prevent serious economic harm to taxpayers or serious impairment of effective tax administration1 such as to prevent the filing of fraudulent returns or claims for refund4 7ii7 ,limitation ,for purposes of clause 7i71 if the preparer tax identification number of a tax return preparer has been suspended pursuant to such clause #b times during any #e-year period1 the ,secretary may not issue an additional suspension pursuant to such clause with respect to such preparer during such period unless such suspension is subsequent to a determination by the ,secretary to suspend or revoke the preparer tax identification number of such preparer pursuant to subparagraph 7,a74 7,e7 ,regulations ,not later than #bd months after the date of enactment of this subsection1 the ,secretary shall issue such regulations or other guidance as the ,secretary determines necessary to carry out the purposes of this paragraph1 including-- 7i7 guidelines that identify the particular penalty applicable to any conduct described in subparagraph 7,a71 and 7ii7 the manner of notice and opportunity to respond for purposes of subparagraph 7,d74 7,f7 ,no inference ,nothing in this paragraph shall be construed to create any inference with respect to the definition or meaning of any term used in section #ccj of title #ca1 ,united ,states ,code1 or regulations prescribed thereunder4 7#f7 ,appeal ,in the case of any tax return preparer for whom the ,secretary has made a determination-- 7,a7 that such preparer has not met the requirements of paragraphs 7#b7 and 7#c7 or of paragraph 7#d7 and that issuance of a preparer tax identification number should be denied1 7,b7 under paragraph 7#e77;,a7 that the preparer tax identification number for such preparer should be suspended or revoked1 or 7,c7 that a penalty should be imposed pursuant to paragraph 7#e77;,b71 such preparer shall be provided with an opportunity to appeal such determination pursuant to procedures 7as established by the ,secretary through regulations or other guidance7 which are similar to the procedures provided under section #ccj of title #ca1 ,united ,states ,code1 and regulations prescribed thereunder4 7#g7 ,disclosure of final determinations 7,a7 ,in general ,in the case of any determination-- 7i7 in which an extended suspension or revocation of a preparer tax identification number is imposed under this subsection1 and 7ii7 for which all administrative and judicial appeals are exhausted1 not later than #cj days following such determination1 the ,secretary shall publish such determination on the public website of the ,internal ,revenue ,service1 which shall include a statement of the facts and circumstances relating to such determination and the reasons for the determination4 7,b7 ,extended suspension ,for purposes of subparagraph 7,a71 the term extended suspension means a suspension issued by the ,secretary pursuant to paragraph 7#e77;,a7 for a period of greater than #ahj days4 7#h7 ,preparer tax identification number ,for purposes of this subsection1 the term preparer tax identification number means an identifying number described in subsection 7a77#d77;,a74 4 7b7 ,determinations regarding practice before the ,department ,section #ccj of title #ca1 ,united ,states ,code1 is amended-- 7#a7 by redesignating subsection 7e7 as subsection 7f72 and 7#b7 by inserting after subsection 7d7 the following3 7e7 ,disclosure of final determinations ,in the case of any determination under subsection 7c7 or 7d7-- 7#a7 in which a suspension1 disbarment1 or censure1 or other penalty is imposed1 and 7#b7 for which all administrative and judicial appeals are exhausted1 not later than #cj days following such determination1 the ,secretary shall publish such determination on a public website1 which shall include a statement of the facts and circumstances relating to such determination and the reasons for the determination4 4 7c7 ,disclosure relating to misconduct by practitioners and tax return preparers 7#a7 ,in general ,section #fajc7k7 is amended by adding at the end the following new paragraph3 7#af7 ,disclosure relating to misconduct by practitioners and tax return preparers ,under such procedures as the ,secretary may prescribe1 the ,secretary may disclose returns and return information to the extent the ,secretary determines it is necessary to publish determinations pursuant to section #faji7;e77#g7 and section #ccj7;e7 of title #ca1 ,united ,states ,code1 provided that such disclosure is redacted to remove-- 7,a7 any name1 address1 or other identifying information with respect to any persons other than the representative or tax return preparer who is the subject of such determination1 and 7,b7 such other information as the ,secretary determines appropriate to protect the privacy of such persons4 4 7#b7 ,conforming amendment ,section #fajc7p77#c77;,a7 is amended by striking or 7#i7 and inserting 7#i71 or 7#af74 7d7 ,requirement ,to include identifying number for paid preparer of offer-in-,compromise 7#a7 ,in general ,section #faji7;a7 is amended by inserting after paragraph 7#d7 the following new paragraph3 7#e7 ,furnishing identifying number for offer-in-compromise ,any offer-in-compromise 7as described in section #gabb71 including any required schedule or statement1 which has been prepared by any person for compensation shall include such identifying number as may be prescribed for securing proper identification of such person4 4 7#b7 ,penalty ,section #gabb is amended by adding at the end the following new subsection3 7h7 ,failure ,to furnish identifying number 7#a7 ,in general 7,a7 ,penalty ,any person who prepares an offer-in-compromise 7including any required schedule or statement7 for compensation and who fails to include an identifying number which complies with section #faji7;a77#e7 with respect to such offer-in-compromise shall pay a penalty of #bej for such failure4 7,b7 ,non-compliance ,for purposes of this paragraph1 an identifying number shall be deemed to not comply with section #faji7;a77#e7 if such identifying number-- 7i7 is assigned to another person1 7ii7 does not exist1 7iii7 is inactive or expired1 7iv7 has been withdrawn1 7v7 is suspended or has been revoked1 or 7vi7 is otherwise invalid for use by the preparer4 7,c7 ,adjustment for inflation 7i7 ,in general ,in the case of any documents filed during any calendar year beginning after #bjbe1 the #bej amount in subparagraph 7,a7 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 #aj1 such amount shall be rounded to the nearest multiple of #aj4 7#b7 ,exception ,the penalty imposed under paragraph 7#a7 shall not apply if it is shown that such failure is due to reasonable cause and not due to willful neglect4 7#c7 ,limitation 7,a7 ,in general ,the maximum penalty imposed under this subsection on any person with respect to documents filed during any calendar year shall not exceed #ge1jjj4 7,b7 ,adjustment for inflation 7i7 ,in general ,in the case of any penalty imposed during any calendar year beginning after #bjbe1 the #ge1jjj amount in subparagraph 7,a7 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 #a1jjj1 such amount shall be rounded to the nearest multiple of #a1jjj4 7#d7 ,other applicable rules ,rules similar to the rules of section #ffif shall apply for purposes of this subsection4 4 7e7 ,,gao ,study and report on the exchange of information between the ,,irs and ,state taxation authorities 7#a7 ,in general ,not later than #ah months after the date of the enactment of this ,act1 the ,comptroller ,general of the ,united ,states shall conduct a study and submit to ,congress a report on the sharing of information between the ,secretary and ,state authorities1 as authorized under subsections 7d7 and 7k77#e7 of section #fajc of the ,internal ,revenue ,code of #aihf1 regarding identification numbers issued to paid tax return preparers and return preparer minimum standards4 7#b7 ,increased information sharing ,the study and report described in paragraph 7#a7 shall include an analysis of the impact that increased information sharing between ,federal and ,state authorities would have on efforts to enforce minimum standards on paid tax return preparers4 7#c7 ,audit of ,internal ,revenue ,service ,section #fajc7;i77#h7 is amended by adding at the end the following new subparagraph3 7,d7 ,application to study conducted under ,taxpayer ,assistance and ,service ,act ,for purposes of this paragraph1 the study and report described in section #ejd7;e77#a7 of the ,taxpayer ,assistance and ,service ,act shall be deemed to be an audit of the ,internal ,revenue ,service4 4 7f7 ,publication of common errors and penalties ,not later than #cf months after the date of the enactment of this ,act and annually thereafter1 the ,commissioner of the ,internal ,revenue shall publish on the public website of the ,internal ,revenue ,service-- 7#a7 the #aj most frequent errors found on tax returns which were prepared by tax return preparers 7as defined in section #ggja7;a77#cf7 of the ,internal ,revenue ,code of #aihf7 during the most recent calendar year for which data is available1 and 7#b7 with respect to the preceding calendar year1 the top #aj reasons that tax return preparers were-- 7,a7 subject to penalties imposed under the ,internal ,revenue ,code of #aihf1 or 7,b7 otherwise disciplined under section #faji of such ,code or section #ccj of title #ca1 ,united ,states ,code4 7g7 ,rule of construction ,nothing in this section 7or amendment made by this section7 shall be construed to require the ,secretary to eliminate or terminate any existing program or authority-- 7#a7 which1 pursuant to section #ccj of title #ca1 ,united ,states ,code1 permits a tax return preparer to represent a taxpayer before the ,department of the ,treasury in cases in which such preparer prepared and signed the return of tax1 or 7#b7 for publication of a public database on the website of the ,internal ,revenue ,service of tax return preparers who have satisfied the requirements for issuance of a preparer tax identification number 7as defined in section #faji7;e77#h7 of the ,internal ,revenue ,code of #aihf74 7h7 ,effective date 7#a7 ,in general ,the amendments made by this section shall take effect on the date which is #ahj days after the date of enactment of this ,act4 7#b7 ,transition rules for educational requirements for tax return preparers 7,a7 ,annual ,filing ,season ,program ,in the case of any tax return preparer who1 as of the date of enactment of this ,act1 has received a record of completion with respect to the ,annual ,filing ,season ,program established by the ,internal ,revenue ,service1 such tax return preparer shall be deemed to have satisfied the education requirements of section #faji7;e77#c7 of the ,internal ,revenue ,code of #aihf 7as added by this section7 for the calendar year for which such record of completion applies4 7,b7 ,approved courses ,in the case of any entity which1 as of the date of enactment of this ,act1 is approved to provide continuing education for purposes of the ,annual ,filing ,season ,program established by the ,internal ,revenue ,service1 such entity shall be deemed to satisfy the applicable requirements under section #faji7;e77#c7 of the ,internal ,revenue ,code of #aihf until the date on which the ,secretary has-- 7i7 issued such regulations or other guidance as the ,secretary determines necessary for purposes of establishing standards for educational programs under such section1 and 7ii7 pursuant to subparagraph 7,e7 of such section1 published a list of educational programs which have been determined by the ,secretary to satisfy the applicable requirements under such section4 ,,vi ,appeals #fja4 ,authorization for ,office of ,appeals to hire attorneys ,subparagraph 7,b7 of section #ghjc7;e77#f7 is amended to read as follows3 7,b7 ,hiring of counsel ,the ,chief of ,appeals shall have the authority to appoint counsel in the ,internal ,revenue ,service ,independent ,office of ,appeals to report directly to the ,chief of ,appeals4 ,any counsel appointed pursuant to this subparagraph shall not report to the ,chief ,counsel for the ,internal ,revenue ,service and shall not represent the ,government in litigation4 ,any legal interpretation of counsel appointed pursuant to this subparagraph shall not be binding on the ,secretary4 4 #fjb4 ,authorization for ,office of ,appeals to direct hire certain individuals ,section #ghjc7;e77#f7 is amended by adding at the end the following3 7,c7 ,authority to appoint individuals not employed by ,internal ,revenue ,service ,the ,secretary may utilize direct hire authority to recruit and appoint qualified applicants1 without regard to any notice or preference requirements1 to positions within the ,internal ,revenue ,service ,independent ,office of ,appeals1 provided that such applicants are not employees of the ,internal ,revenue ,service engaged in enforcement functions4 4 #fjc4 ,responses to claims for refund required2 appeal of claims for refund authorized 7a7 ,in general ,subsection 7l7 of section #fdjb is amended to read as follows3 7l7 ,explanation of reason for refund disallowance2 appeals 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 ,appeals 7,a7 ,in general ,any disallowance of a claim for refund may1 within #cj days after the date such disallowance is mailed 7or1 if mailed to an address outside of the ,united ,states1 #ij days71 be appealed to the ,internal ,revenue ,service ,independent ,office of ,appeals4 ,notwithstanding paragraph 7#d7 of section #fecb7;a71 during the period in which any such appeal is pending before the ,internal ,revenue ,service ,independent ,office of ,appeals 7and for #cj days thereafter71 the #b-year period in paragraph 7#a7 of such section for filing suit for refund after disallowance of a claim shall be suspended4 7,b7 ,deemed disallowance ,for purposes of subparagraph 7,a71 in the case of any claim for refund for which the ,secretary has failed to make a determination with respect to such claim by the date described in paragraph 7#e77;,a71 the taxpayer may elect for such claim to be deemed to have been disallowed by the ,secretary as of such date4 7#d7 ,frivolous claims 7,a7 ,in general ,in the case of any frivolous claim-- 7i7 paragraphs 7#a7 and 7#c7 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#e7 ,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 #fjd4 ,appeals of returned offers ,section #gabb7;e7 is amended-- 7#a7 by striking paragraph 7#a7 and inserting the following3 7#a7 for an independent administrative review of-- 7,a7 any determination that an offer-in-compromise be returned to the taxpayer because such offer-in-compromise is not accepted for processing or is otherwise determined to be nonprocessable before such determination is communicated to the taxpayer1 and 7,b7 any rejection of a proposed offer-in-compromise or installment agreement made by a taxpayer under this section or section #faei before such rejection is communicated to the taxpayer1 and 1 and 7#b7 in paragraph 7#b71 by striking any rejection of such offer or agreement and inserting any determination described in paragraph 7#a77;,a7 or any rejection described in paragraph 7#a77;,b74 #fje4 ,purposes and duties of ,independent ,office of ,appeals2 right of appeal clarified 7a7 ,in general ,section #ghjc7;e7 is amended-- 7#a7 in paragraph 7#c7-- 7,a7 in subparagraph 7,b71 by striking and at the end1 7,b7 in subparagraph 7,c71 by striking the period at the end and inserting 1 and1 and 7,c7 by adding at the end the following new subparagraph3 7,d7 without exception1 evaluates and considers all hazards of litigation in resolving any case referred to the ,internal ,revenue ,service ,independent ,office of ,appeals4 1 and 7#b7 by striking paragraph 7#d7 and inserting the following new paragraph3 7#d7 ,right of appeal 7,a7 ,in general ,except as otherwise provided under this title1 the resolution process described in paragraph 7#c7 shall be available to all taxpayers with respect to any determination by the ,secretary concerning a ,federal tax controversy1 including-- 7i7 liability for1 or any claim for refund of1 any tax1 7ii7 liability for1 or any claim for refund of1 any penalty or addition to tax1 7iii7 eligibility for alternatives to collection of a tax liability1 such as an agreement or compromise under section #faei or #gabb1 or 7iv7 any exercise of discretion by the ,secretary with respect to any determination described in clauses 7i7 through 7iii74 7,b7 ,exceptions ,subparagraph 7,a7 shall not apply with respect to any appeal-- 7i7 which is solely based on a challenge to the constitutionality or validity of any law1 regulation1 notice1 revenue ruling1 or revenue procedure issued by the ,secretary1 unless there is a final and unreviewable decision rendered by a ,federal court that the relevant provision of such law1 regulation1 notice1 revenue ruling1 or revenue procedure which is being challenged is unconstitutional or otherwise invalid1 7ii7 which-- 7,i7 is based on a position which-- 7aa7 a ,federal court has determined to be frivolous1 and 7bb7 the ,secretary has identified as frivolous for purposes of subsection 7c7 of section #fgjb1 or 7,,ii7 relates to any penalty imposed under such section with respect to such position1 7iii7 which relates to any matter agreed upon pursuant to an agreement under section #gaba1 7iv7 subject to subparagraph 7,c71 during any period in which-- 7,i7 the ,secretary is actively investigating whether to refer the taxpayer to the ,attorney ,general for criminal prosecution1 7,,ii7 a recommendation made by the ,secretary to the ,attorney ,general for the criminal prosecution of the taxpayer for any offense connected with the administration or enforcement of the internal revenue laws is pending1 or 7,,iii7 any criminal prosecution of the taxpayer1 or of any other person in a case in which the taxpayer is a witness1 for any offense connected with the administration or enforcement of the internal revenue laws is pending1 or 7v7 with respect to any issue in a case which1 based on the relevant facts and circumstances of such case1 the ,chief ,counsel for the ,internal ,revenue ,service-- 7,i7 has designated for litigation1 and 7,,ii7 is prepared to proceed with such litigation in a timely manner4 7,c7 ,exception for certain criminal prosecutions ,subparagraph 7,b77iv7 shall not apply if the ,chief ,counsel for the ,internal ,revenue ,service determines that the resolution process described in paragraph 7#c7 would not interfere with the criminal prosecution of a taxpayer4 7,d7 ,federal tax controversy ,for purposes of this paragraph1 the term ,federal tax controversy means a dispute described in paragraph 7#b7 or 7#c7 of section #cja4ghjc-b of title #bf1 ,code of ,federal ,regulations 7as in effect on the date of enactment of the ,taxpayer ,assistance and ,service ,act74 4 ,,vii ,whistleblowers #gja4 ,standard and scope of review of whistleblower award determinations 7a7 ,in general ,paragraph 7#d7 of section #gfbc7;b7 is amended-- 7#a7 by striking appealed to and inserting reviewed by2 and 7#b7 by adding at the end the following3 ,any review by the ,tax ,court under the preceding sentence shall be de novo and shall be based on the administrative record established at the time of the original determination and any additional newly discovered or previously unavailable evidence44 7b7 ,conforming amendment ,the heading of paragraph 7#d7 of section #gfbc7;b7 is amended by striking ,appeal and inserting ,review4 7c7 ,effective date ,the amendments made by this section shall apply to petitions under section #gfbc7;b77#d7 of the ,internal ,revenue ,code of #aihf which are pending on1 or filed on or after1 the date of the enactment of this ,act4 #gjb4 ,exemption from sequestration 7a7 ,in general ,section #bee of the ,balanced ,budget and ,emergency ,deficit ,control ,act of #aihe 7#b ,u4,s4,c4 #ije7 is amended-- 7#a7 by redesignating subsection 7k7 as subsection 7l72 and 7#b7 by inserting after subsection 7j7 the following3 7k7 ,awards to whistleblowers ,an award authorized under section #gfbc of the ,internal ,revenue ,code of #aihf shall be exempt from reduction under any order issued under this part4 4 7b7 ,applicability ,the amendment made by this section shall apply to any sequestration order issued under the ,balanced ,budget and ,emergency ,deficit ,control ,act of #aihe 7#b ,u4,s4,c4 #ijj et seq47 after the date of enactment of this ,act4 #gjc4 ,whistleblower privacy protections 7a7 ,in general ,paragraph 7#f7 of section #gfbc7;b7 is amended by adding at the end the following new subparagraph3 7,d7 ,whistleblower anonymity before the ,tax ,court ,notwithstanding sections #gdeh and #gdfa1 a whistleblower shall proceed anonymously before the ,tax ,court for all proceedings under this section absent a finding by the ,tax ,court that a societal interest exists for disclosing the whistleblower's identity which exceeds the potential harm disclosure could cause to the whistleblower4 4 7b7 ,effective date ,the amendment made by this section shall apply to petitions filed with the ,tax ,court which are pending on1 or filed on or after1 the date of the enactment of this ,act4 #gjd4 ,modification of ,,irs whistleblower report 7a7 ,in general ,section #djf7;c7 of division ,a of the ,tax ,relief and ,health ,care ,act of #bjjf is amended by striking such use1 in paragraph 7#a7 and inserting such use 7which shall include a list and descriptions of the top tax avoidance schemes1 not to exceed #aj1 disclosed by whistleblowers during such year714 7b7 ,effective date ,the amendments made by this section shall apply to reports for fiscal years ending after the enactment of this ,act4 #gje4 ,interest on whistleblower awards 7a7 ,in general ,section #gfbc7;b7 is amended by adding at the end the following new paragraph3 7#g7 ,interest 7,a7 ,in general ,if the ,secretary has not provided notice to an individual described in paragraph 7#a7 of a preliminary award recommendation before the applicable date1 the amount of any award under this subsection shall include interest from such date at the overpayment rate under section #ffba7;a74 7,b7 ,exception ,no interest shall accrue under this paragraph after the date on which the ,secretary provides notice to the individual of a preliminary award recommendation4 7,c7 ,applicable date ,for purposes of this paragraph1 the applicable date is the date that is #ab months after the first date on which-- 7i7 all of the proceeds resulting from actions subject to the award recommendation have been collected1 and 7ii7 either-- 7,i7 the statutory period for filing a claim or suit for refund has expired1 or 7,,ii7 the taxpayers subject to the actions and the ,secretary have agreed with finality to the tax or other liabilities for the periods at issue1 and either the taxpayers have waived the right to file a claim or suit for refund or any claim or suit for refund has been resolved4 4 7b7 ,effective date 7#a7 ,in general ,the amendments made by this section shall take effect #ahj days after the date of the enactment of this ,act4 7#b7 ,special rule ,if1 as of the date described in paragraph 7#a7-- 7,a7 the ,secretary has not provided notice to the individual of a preliminary award recommendation as described in paragraph 7#g77;,a7 of section #gfbc7;b7 of the ,internal ,revenue ,code of #aihf1 as added by this ,act1 and 7,b7 the applicable date provided in paragraph 7#g77;,c7 of such section1 as so added1 has passed1 the applicable date for purposes of such paragraph 7#g77;,c7 is the date that is #ab months after the date described in paragraph 7#a74 #gjf4 ,correction regarding deductions for attorney's fees 7a7 ,in general ,section #fb7;a77#ba77;,a77i7 is amended by striking #gfbc7;b7 and inserting #gfbc4 7b7 ,effective date ,the amendment made by this section shall apply to taxable years ending after the date of the enactment of this ,act4 ,,viii ,hostages #hja4 ,postponement of tax deadlines for hostages and individuals wrongfully detained abroad 7a7 ,in general ,chapter #gg is amended by inserting after section #geaj the following new section3 #geaa4 ,time for performing certain acts postponed for hostages and individuals wrongfully detained abroad 7a7 ,time ,to be disregarded 7#a7 ,in general ,the period during which an applicable individual was unlawfully or wrongfully detained abroad1 or held hostage abroad1 shall be disregarded in determining1 under the internal revenue laws1 in respect of any tax liability of such individual-- 7,a7 whether any of the acts described in section #gejh7;a77#a7 were performed within the time prescribed thereof 7determined without regard to extension under any other provision of this subtitle for periods after the initial date 7as determined by the ,secretary7 on which such individual was unlawfully or wrongfully detained abroad or held hostage abroad71 7,b7 the amount of any interest1 penalty1 additional amount1 or addition to the tax for periods after such date1 and 7,c7 the amount of any credit or refund4 7#b7 ,application to spouse ,the provisions of paragraph 7#a7 shall apply to the spouse of any individual entitled to the benefits of such paragraph4 7#c7 ,special rule for overpayments ,the rules of section #gejh7;b7 shall apply for purposes of this section4 7b7 ,applicable individual 7#a7 ,in general ,for purposes of this section1 the term applicable individual means any individual who is-- 7,a7 a ,united ,states national unlawfully or wrongfully detained abroad1 as determined under section #cjb of the ,robert ,levinson ,hostage ,recovery and ,hostage-,taking ,accountability ,act 7#bb ,u4,s4,c4 #agda71 or 7,b7 a ,united ,states national taken hostage abroad1 as determined pursuant to the findings of the ,hostage ,recovery ,fusion ,cell 7as described in section #cjd of the ,robert ,levinson ,hostage ,recovery and ,hostage-,taking ,accountability ,act 7#bb ,u4,s4,c4 #agda7;b7774 7#b7 ,information provided to ,treasury ,for purposes of identifying individuals described in paragraph 7#a71 not later than ,january #a1 #bjbg1 and annually thereafter-- 7,a7 the ,secretary of ,state shall provide the ,secretary with a list of the individuals described in paragraph 7#a77;,a71 as well as any other information necessary to identify such individuals1 and 7,b7 the ,attorney ,general1 acting through the ,hostage ,recovery ,fusion ,cell1 shall provide the ,secretary with a list of the individuals described in paragraph 7#a77;,b71 as well as any other information necessary to identify such individuals4 7c7 ,modification of ,treasury databases and information systems ,the ,secretary shall update1 as necessary1 any database or information system of the ,department of the ,treasury in order to ensure that the provisions of subsection 7a7 are applied with respect to each applicable individual4 7d7 ,refund and abatement of penalties and fines imposed prior to identification as applicable individual ,in the case of any applicable individual-- 7#a7 for whom any interest1 penalty1 additional amount1 or addition to the tax in respect to any tax liability for any taxable year ending during the period described in subsection 7a77#a7 was assessed or collected1 and 7#b7 who was1 subsequent to such assessment or collection1 determined to be an individual described in subparagraph 7,a7 or 7,b7 of subsection 7b77#a71 the ,secretary shall abate any such assessment and refund any amount collected to such applicable individual in the same manner as any refund of an overpayment of tax under section #fdjb4 4 7b7 ,clerical amendment ,the table of sections for chapter #gg is amended by inserting after the item relating to section #geaj the following new item3 ,sec4 #geaa4 ,time for performing certain acts postponed for hostages and individuals wrongfully detained abroad4 4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years ending after the date of enactment of this ,act4 #hjb4 ,refund and abatement of penalties and fines paid by eligible individuals 7a7 ,in general ,section #geaa1 as added by section #hja of this ,act1 is amended by adding at the end the following new subsection3 7e7 ,refund and abatement of penalties and fines paid by eligible individuals 7#a7 ,in general 7,a7 ,establishment ,not later than ,january #a1 #bjbg1 the ,secretary 7in consultation with the ,secretary of ,state and the ,attorney ,general7 shall establish a program to allow any eligible individual 7or the spouse or any dependent 7as defined in section #aeb7 of such individual7 to apply for a refund or an abatement of any amount described in paragraph 7#b7 7including interest7 to the extent such amount was attributable to the applicable period4 7,b7 ,identification of individuals ,not later than ,january #a1 #bjbg1 the ,secretary of ,state and the ,attorney ,general1 acting through the ,hostage ,recovery ,fusion ,cell 7as described in section #cjd of the ,robert ,levinson ,hostage ,recovery and ,hostage-,taking ,accountability ,act 7#bb ,u4,s4,c4 #agda7;b7771 shall-- 7i7 compile a list1 based on such information as is available1 of individuals who were applicable individuals during the applicable period1 and 7ii7 provide the list described in clause 7i7 to the ,secretary4 7,c7 ,notice ,for purposes of carrying out the program described in subparagraph 7,a71 the ,secretary 7in consultation with the ,secretary of ,state and the ,attorney ,general7 shall1 with respect to any individual identified under subparagraph 7,b71 provide notice to such individual-- 7i7 in the case of an individual who has been released on or before the date of enactment of this subsection1 not later than #ij days after the date of enactment of this subsection1 or 7ii7 in the case of an individual who is released after the date of enactment of this subsection1 not later than #ij days after the date on which such individual is released1 that such individual may be eligible for a refund or an abatement of any amount described in paragraph 7#b7 pursuant to the program described in subparagraph 7,a74 7,d7 ,authorization 7i7 ,in general ,subject to clause 7ii71 in the case of any refund described in subparagraph 7,a71 the ,secretary shall issue such refund to the eligible individual in the same manner as any refund of an overpayment of tax under section #fdjb4 7ii7 ,extension of limitation on time for refund ,with respect to any refund under subparagraph 7,a7-- 7,i7 the #c-year period of limitation prescribed by section #feaa7;a7 shall be extended until the end of the #a-year period beginning on the date that the notice described in subparagraph 7,c7 is provided to the eligible individual1 and 7,,ii7 any limitation under section #feaa7;b77#b7 shall not apply4 7#b7 ,eligible individual ,for purposes of this subsection1 the term eligible individual means any applicable individual who1 for any taxable year ending during the applicable period1 paid or incurred any interest1 penalty1 additional amount1 or addition to the tax in respect to any tax liability for such year of such individual based on a determination that an act described in section #gejh7;a77#a7 which was not performed by the time prescribed therefor 7without regard to any extensions74 7#c7 ,applicable period ,for purposes of this subsection1 the term applicable period means the period-- 7,a7 beginning on ,january #a1 #bjba1 and 7,b7 ending on the date of enactment of this subsection4 4 7b7 ,effective date ,the amendment made by this section shall apply to taxable years ending on or before the date of enactment of this ,act4 ,,ix ,small ,businesses #ija4 ,implementation of voluntary withholding agreements for payments to independent contractors 7a7 ,in general ,section #cdjb7p7 is amended by redesignating paragraph 7#c7 as paragraph 7#d7 and by inserting after paragraph 7#b7 the following new paragraph3 7#c7 ,voluntary withholding on certain non-wage remuneration 7,a7 ,in general ,if1 at the time a payment of applicable non-wage remuneration is made to any person1 there is a voluntary agreement in effect between the person making and the person receiving the payment that the applicable non-wage remuneration be subject to withholding1 then for purposes of this chapter and so much of subtitle ,f as relates to this chapter1 such payment shall be treated as if it were a payment of wages by an employer to an employee4 7,b7 ,applicable non-wage remuneration ,for purposes of this subsection1 the term applicable non-wage remuneration means remuneration for services performed by an individual which 7without regard to this paragraph7 does not constitute wages4 7,c7 ,regulations and guidance ,not later than the date that is #ah months after the date of the enactment of this subparagraph1 the ,secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the provisions of this section1 including such regulations or guidance for determining the amount to be deducted and withheld and the types of payments which are considered to be applicable non-wage remuneration4 4 #ijb4 ,establishment of failure-to-pay penalty safe harbor for individuals 7a7 ,in general ,section #ffea7;c7 is amended by adding at the end the following new paragraph3 7#c7 ,no penalty for failure to pay income tax for individuals who timely pay #abe percent of income tax liability for prior year 7,a7 ,in general ,subsection 7a77#b7 shall not apply with respect to an income tax return of an individual if such individual pays1 on or before the date prescribed for the payment of the tax with respect to which such return relates 7determined with regard to any extension of time for payment71 #abe percent of the amount of tax shown on the income tax return of such individual for the immediately preceding taxable year4 7,b7 ,failure to file2 short taxable years ,subparagraph 7,a7 shall not apply-- 7i7 if the individual does not file an income tax return for the taxable year described in subparagraph 7,a7 on or before the date prescribed therefor 7determined with regard to any extension of time for filing71 7ii7 if the individual did not file an income tax return for the immediately preceding taxable year referred to in subparagraph 7,a7 on or before the date prescribed therefor 7determined with regard to any extension of time for filing71 or 7iii7 if the immediately preceding taxable year referred to in subparagraph 7,a7 was less than #ab months4 7,c7 ,joint returns 7i7 ,individuals not filing joint returns for the preceding taxable year ,in the case of a joint return1 if the taxpayer did not file a joint return for the immediately preceding taxable year referred to in subparagraph 7,a71 the amounts shown on the income tax returns of both spouses for such immediately preceding taxable year shall be taken into account under subparagraph 7,a74 7ii7 ,individuals filing joint returns for the preceding taxable year 7,i7 ,in general ,except as provided in subclause 7,,ii7 or otherwise provided by the ,secretary1 if the individual does not file a joint return for the taxable year to which subparagraph 7,a7 applies and filed a joint return for the immediately preceding taxable year on or before the date prescribed therefor 7determined with regard to any extension of time for filing71 the entire amount of tax shown on such joint return shall be taken into account under subparagraph 7,a74 7,,ii7 ,election to recompute preceding year tax ,if a taxpayer to whom clause 7,i7 applies elects1 in such form and such manner as the ,secretary may provide1 to recompute the tax for the immediately preceding taxable year as if the taxpayer was a married individual filing a separate return1 only the amount shown on such recomputed separate return shall be taken into account under subparagraph 7,a74 7,d7 ,exception not applicable unless additional payments are made with timely filed return ,subparagraph 7,a7 shall not apply with respect to any period beginning after the date prescribed for filing the income tax return for the taxable year 7including extensions thereof74 4 7b7 ,conforming amendment ,the heading of section #ffea7;c7 is amended by striking ,rule and inserting ,rules4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after the date which is #ab months after the date of enactment of this ,act4 #ijc4 ,extension of mailbox rule to electronic submissions and payments 7a7 ,in general ,section #gejb7;c7 is amended-- 7#a7 in the heading1 by inserting and payment after filing1 7#b7 in paragraph 7#b7-- 7,a7 in the heading1 by striking 2 electronic filing1 and 7,b7 by striking and electronic filing1 and 7#c7 by adding at the end the following3 7#c7 ,electronic filing and payment 7,a7 ,in general ,in the case of any document or payment which the ,secretary has permitted to be filed or made by electronic means1 if such document or payment is-- 7i7 authorized to be submitted by the taxpayer using a permitted electronic means to the agency1 officer1 or office to which the document was required to be filed 7or payment was required to be made7 on or before the prescribed date 7or within the period required7 with respect to such document or payment1 and 7ii7 received 7or1 in the case of a payment1 received and accounted for7 no later than #c business days after the prescribed date or period required with respect to such document or payment1 the date that such document or payment was authorized to be submitted 7as described in clause 7i77 shall be deemed to be the date that such document was filed or such payment was made4 7,b7 ,exception ,this paragraph shall not apply to any payment if ,secretary determines that the taxpayer 7or any intermediary used by the taxpayer7 used a system designed with a principal purpose of delaying the transfer of funds to the ,treasury to derive economic benefit from the period of such delay4 7,c7 ,regulations ,not later than the date which is #a year after the date of enactment of the ,taxpayer ,assistance and ,service ,act1 the ,secretary shall issue such regulations or other guidance as the ,secretary determines necessary to carry out the purposes of this paragraph1 including regulations or other guidance describing the records or proof sufficient to demonstrate timely electronic submission4 7b7 ,effective date ,the amendments made by subsection 7a7 shall apply to any document or payment sent on or after the date which is #a year after the date of enactment of this ,act4 4 #ijd4 ,specificity of third-party contact notices 7a7 ,in general ,paragraph 7#a7 of section #gfjb7;c7 is amended-- 7#a7 by striking and at the end of subparagraph 7,a71 7#b7 by redesignating subparagraph 7,b7 as subparagraph 7,c7 and by inserting after subparagraph 7,a7 the following new subparagraph3 7,b7 in any case in which the information sought to be obtained from such other persons could reasonably be provided by the taxpayer1 identifies the item of information intended to be sought from such persons1 and 1 and 7#c7 by amending subparagraph 7,c71 as redesignated by paragraph 7#b71 to read as follows3 7,c7 provides the taxpayer with reasonable opportunity and a period of not less than #de days 7or more1 if the taxpayer requests additional time and shows reasonable cause7 to respond1 including by providing the information described in subparagraph 7,b71 before contact is made with such other persons4 4 7b7 ,exception ,section #gfjb7;c77#c7 is amended-- 7#a7 by redesignating subparagraphs 7,a71 7,b71 and 7,c7 as clauses 7i71 7ii71 and 7iii71 respectively1 and by moving such clauses #b ems to the right1 7#b7 by striking ,this subsection and inserting the following3 7,a7 ,in general ,this subsection 1 and 7#c7 by adding at the end the following new subparagraph3 7,b7 ,good cause ,for purposes of subparagraph 7,a77ii71 good cause includes a reasonable belief that compliance with this subsection will lead to-- 7i7 attempts by any person to conceal1 remove1 destroy1 or alter records or assets that may be relevant to any tax examination or collection activity2 7ii7 attempts by any person to prevent other persons1 through intimidation1 bribery1 or collusion1 from communicating any information that may be relevant to any tax examination or collection activity2 or 7iii7 attempts by any person to flee1 or otherwise avoid testifying or producing records that may be relevant to any tax examination or collection activity4 4 7c7 ,effective date ,the amendments made by this section shall apply to notices provided under section #gfjb7;c7 of the ,internal ,revenue ,code of #aihf after the date that is #ab months after the date of the enactment of this ,act4 ,x ,miscellaneous #ajja4 ,authority for redisclosure of certain tax information related to education loans to the ,congressional ,budget ,office 7a7 ,in general ,section #fajc7l77#ac77;,d7 is amended by adding at the end the following new clause3 7vii7 ,redisclosure to the congressional budget office ,authorized persons may1 upon written request by the ,director of the ,congressional ,budget ,office to the ,secretary of ,education1 redisclose return information received under subparagraphs 7,a71 7,b71 and 7,c7 to officers and employees of the ,congressional ,budget ,office for the purpose of1 but only to the extent necessary in1 carrying out the purposes described in subclause 7,,iii7 of clause 7i74 4 7b7 ,conforming amendment ,section #fajc7l77#ac77;,f7 is amended by striking 7iv7 7v71 or 7vi7 and inserting 7iv71 7v71 7vi71 or 7vii74 7c7 ,effective date ,the amendments made by this section shall apply to disclosures made after the date of the enactment of this ,act4 7d7 ,reports ,the ,secretary of ,education shall annually submit a written report to the ,secretary of the ,treasury-- 7#a7 regarding redisclosures of return information under subparagraph 7,d77vii7 of section #fajc7l77#ac7 of the ,internal ,revenue ,code of #aihf 7as added by this section71 including the number of such redisclosures2 and 7#b7 regarding any unauthorized use1 access1 or disclosure of return information disclosed under such section4 #ajjb4 ,authorization to require large partnerships to file on magnetic media 7a7 ,in general ,section #fjaa7;e7 is amended-- 7#a7 by striking the first paragraph 7#f71 as added by section #bcja7;b7 of the ,taxpayer ,first ,act1 and inserting the following3 7#f7 ,partnerships required to file on magnetic media ,notwithstanding paragraph 7#b77;,a71 the ,secretary shall require a partnership to file returns on magnetic media if1 at the close of the partnership's taxable year-- 7,a7 the partnership has more than #ej partners1 or 7,b7 the value of the partnership's assets equals or exceeds #a1jjj1jjj1 as determined under regulations prescribed by the ,secretary4 1 and 7#b7 by redesignating the second paragraph 7#f71 as added by section #bjb7;d7 of the ,setting ,every ,community ,up for ,retirement ,enhancement ,act of #bjai1 as paragraph 7#g74 7b7 ,effective date ,the amendments made by this section shall apply to returns filed on or after ,january #a of the first calendar year beginning after the date of enactment of this ,act4 #ajjc4 ,limitation period not extended for victims of preparer fraud 7a7 ,in general ,section #feja7;c77#a7 is amended by inserting by the taxpayer after intent4 7b7 ,effective date ,the amendment made by this section shall apply to assessments made or proceedings begun after the date of enactment of this ,act4 #ajjd4 ,technical amendment related to the ,disaster ,related ,extension of ,deadlines ,act 7a7 ,in general ,subsection 7f7 of section #gejh;,a 7as added by the ,disaster ,related ,extension of ,deadlines ,act7 is redesignated as subsection 7g74 7b7 ,effective date ,the amendment made by this section shall take effect as if included in section #b7;a7 of the ,disaster ,related ,extension of ,deadlines ,act4