,,ii  #aai? ,,congress  #b;d ,session   
,s4 #eagc  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,july #cj1 #bjbf,mr4   
,:iteh\se 7= himself & ,mr4 ,cassidy7   
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to treat tax      
p5alties z assessable 9 ! same mann] z  
taxes1 to provide notice requirem5ts =  
c]ta9 p5alties1 & = o!r purposes4  #a4  
,%ort title ,?is ,act may be cit$ z !   
,fairness 9 ,=eign ,fil+ ,act4  #b4     
,treatm5t ( tax p5alties  7a7 ,treatm5t 
( p5alties z taxes ,section #ffga7;a7 ( 
! ,int]nal ,rev5ue ,code ( #aihf is     
am5d$-- 7#a7 by /rik+ ,! p5alties &     
liabilities provid$ by ?is sub*apt] &   
ins]t+ ! foll[+3  7#a7 ,9 g5]al ,any    
p5alties provid$ by ?is title1 includ+ !
 p5alties & liabilities provid$ by ?is  
sub*apt]1  1  7#b7 by /rik+ ! p5alties &
 liabilities provid$ by ?is sub*apt]4 & 
ins]t+ ! p5alties provid$ by ?is title1 
includ+ ! p5alties & liabilities provid$

 by ?is sub*apt]41 &  7#c7 by add+ at ! 
end ! foll[+ new p>agraph3  7#b7        
,exception ,p>agraph 7#a7 %all n apply  
to any p5alty n provid$ by ?is sub*apt] 
if su* p5alty is a p5alty = :i* a civil 
or crim9al action is prescrib$ z ! me?od
 ( collection or has be5 consi/5tly     
treat$ by ! ,secret>y be=e ! date ( !   
enactm5t ( ?is p>agraph z su* a p5alty4 
4  7b7 ,notice requirem5t = c]ta9       
p5alties  7#a7 ,9 g5]al ,sub*apt] ,c (  
*apt] #fh ( ! ,int]nal ,rev5ue ,code (  
#aihf is am5d$ by add+ at ! end ! foll[+
 new section3  #fgeb4 ,prelim9>y notice 
& "r ( review = cov]$ p5alties  7a7     
,notice  7#a7 ,9 g5]al ,no cov]$ p5alty 
%all be assess$ unless ! ,secret>y      
provides a notice to ! taxpay] 9 writ+  
by mail to an address z det]m9$ "u      
section #fbab7;b7 t conta9s ! foll[+    
in=mation3 7,a7 ,! cov]$ p5alty propos$ 
to be assess$4  7,b7 ,! taxable ye>s or 
p]iods involv$4  7,c7 ,! basis = !      
propos$ p5alty4  7,d7 ,in=mation ab\t ! 
"r ( ! taxpay] to reque/ review z       

provid$ 9 subsection 7b74  7#b7 ,tim+ ( 
notice ,! mail+ ( ! notice describ$ 9   
p>agraph 7#a7 %all prec$e any notice &  
dem& ( any cov]$ p5alty by at lea/ #fj  
days 7#abj days 9 ! case ( a notice     
address$ to a taxpay] outside ! ,unit$  
,/ates74  7b7 ,"r to a review ,)9 #fj   
days 7#abj days 9 ! case ( a notice s5t 
to a taxpay] outside ! ,unit$ ,/ates7 ( 
! mail+ ( ! notice describ$ 9 subsection
 7a71 ! taxpay] may reque/ a review ( ! 
propos$ p5alty by ! ,int]nal ,rev5ue    
,s]vice ,indep5d5t ,(fice ( ,appeals4   
7c7 ,susp5sion ( assessm5t & collection 
7#a7 ,9 g5]al ,a cov]$ p5alty may n be  
assess$1 dem&$1 or collect$ be=e-- 7,a7 
! expiration ( ! p]iod provid$ "u       
subsection 7b71 or  7,b7 9 any case 9   
:i* ! taxpay] reque/s a review "u       
subsection 7b71 ! date a f9al           
det]m9ation is issu$ 9 su* review4  7#b7
 ,/atute ( limitations ,if a notice     
describ$ 9 subsection 7a7 ) respect to  
any cov]$ p5alty is mail$ be=e !        
expiration ( ! p]iod provid$ by section 

#feja = ! assessm5t ( su* p5alty        
7det]m9$ )\t reg>d to ?is p>agraph71 !  
runn+ ( su* p]iod %all be susp5d$ = !   
p]iod dur+ :i* assessm5t is prohibit$ "u
 ?is section & = #cj days !reaft]4  7d7 
,cov]$ p5alty ,= purposes ( ?is section1
 ! t]m cov]$ p5alty means any p5alty    
impos$ "u section #fjch7;b77#a71        
#fjch;,a7d77#a71 #fjch;,b7c71           
#fjch;,c7c71 #fjch;,d7d77#a71           
#fjci;,f7c77#a77;,b71 or #ffgg4  7e7    
,exception = jeop>dy ,?is subsection    
%all n apply if ! ,secret>y f9ds t !    
collection ( ! p5alty is 9 jeop>dy4  7f7
 ,regulations ,! ,secret>y %all         
prescribe su* regulations or o!r        
guidance z may be necess>y or           
appropriate to c>ry out ?is section1    
includ+ regulations or o!r guidance     
relat+ to-- 7#a7 proc$ures = issu+      
notices "u subsection 7a71  7#b7 ! "t & 
mann] = pres5t+ appropriate def5ses "u  
subsection 7b77#b71 &  7#c7 e/abli%+    
simplifi$ reviews = cases 9 :i* ! p5alty
 am\nt at issue does n exce$ a designat$

 doll> ?re%old4  4  7#b7 ,cl]ical       
am5dm5t ,! table ( sections = sub*apt]  
,c ( *apt] #fh ( su* ,code is am5d$ by  
add+ at ! end ! foll[+ new item3  ,sec4 
#fgeb4 ,prelim9>y notice & "r ( review =
 cov]$ p5alties4  4  7c7 ,int]pretive   
rules  7#a7 ,taxpay] rights ,no?+ 9 !   
am5dm5ts made by ?is section %all be    
con/ru$ to create any limitation on !   
rights ( a taxpay]-- 7,a7 "u sub*apt] ,c
 or ,d ( *apt] #fd ( ! ,int]nal ,rev5ue 
,code ( #aihf1 or  7,b7 to pursue refund
 litigation ) respect to ! assessm5t or 
imposition ( any p5alty impos$ "u su*   
,code4  7#b7 ,no inf]5ce ,no?+ 9 !      
am5dm5ts made by ?is section %all be    
con/ru$ to create any inf]5ce ) respect 
to ! treatm5t ( any cov]$ p5alty 7z     
def9$ 9 section #fgeb ( ! ,int]nal      
,rev5ue ,code ( #aihf1 z add$ by ?is    
section7 be=e ! date ( ! enactm5t ( ?is 
,act4  #c4 ,repeal ( due date           
requirem5ts = c]ta9 in=mation returns   
relat+ to =eign tru/s  7a7 ,9 g5]al     
,section #bjjf7;b7 ( ! ,surface         

,transportation & ,vet]ans ,heal? ,c>e  
,*oice ,improvem5t ,act ( #bjae is am5d$
 by /rik+ p>agraphs 7#i7 & 7#aj74  7b7  
,effective date ,! am5dm5t made by ?is  
section %all apply to returns = taxable 
ye>s beg9n+ aft] ,decemb] #ca1 #bjbf4