S.Amdt. 632

SA 632. Mr. HATCH submitted an amendment intended to be proposed to
amendment SA 605 proposed by Mr. Inhofe to the bill H.R. 3, to
authorize funds for Federal-aid highways, highway safety programs, and
transit programs, and for other purposes; which was ordered to lie on
the table; as follows:

At the end of title V, add the following:

Subtitle G--United States Tax Court Modernization

SEC. 5700. SHORT TITLE.

This title may be cited as the ``United States Tax Court
Modernization Act''.

PART I--TAX COURT PROCEDURE

SEC. 5701. JURISDICTION OF TAX COURT OVER COLLECTION DUE
PROCESS CASES.

(a) In General.--Paragraph (1) of section 6330(d) (relating
to proceeding after hearing) is amended to read as follows:
``(1) Judicial review of determination.--The person may,
within 30 days of a determination under this section, appeal
such determination to the Tax Court (and the Tax Court shall
have jurisdiction with respect to such matter).''.
(b) Effective Date.--The amendment made by this section
shall apply to determinations made after the date which is 60
days after the date of the enactment of this Act.

SEC. 5702. AUTHORITY FOR SPECIAL TRIAL JUDGES TO HEAR AND
DECIDE CERTAIN EMPLOYMENT STATUS CASES.

(a) In General.--Section 7443A(b) (relating to proceedings
which may be assigned to special trial judges) is amended by
striking ``and'' at the end of paragraph (4), by
redesignating paragraph (5) as paragraph (6), and by
inserting after paragraph (4) the following new paragraph:
``(5) any proceeding under section 7436(c), and''.
(b) Conforming Amendment.--Section 7443A(c) is amended by
striking ``or (4)'' and inserting ``(4), or (5)''.
(c) Effective Date.--The amendments made by this section
shall apply to any proceeding under section 7436(c) of the
Internal Revenue Code of 1986 with respect to which a
decision has not become final (as determined under section
7481 of such Code) before the date of the enactment of this
Act.

SEC. 5703. CONFIRMATION OF AUTHORITY OF TAX COURT TO APPLY
DOCTRINE OF EQUITABLE RECOUPMENT.

(a) Confirmation of Authority of Tax Court To Apply
Doctrine of Equitable Recoupment.--Section 6214(b) (relating
to jurisdiction over other years and quarters) is amended by
adding at the end the following new sentence:
``Notwithstanding the preceding sentence, the Tax Court may
apply the doctrine of equitable recoupment to the same extent
that it is available in civil tax cases before the district
courts of the United States and the United States Court of
Federal Claims.''.
(b) Effective Date.--The amendment made by this section
shall apply to any action or proceeding in the United States
Tax Court with respect to which a decision has not become
final (as determined under section 7481 of the Internal
Revenue Code of 1986) as of the date of the enactment of this
Act.

SEC. 5704. TAX COURT FILING FEE IN ALL CASES COMMENCED BY
FILING PETITION.

(a) In General.--Section 7451 (relating to fee for filing a
Tax Court petition) is amended by striking all that follows
``petition'' and inserting a period.
(b) Effective Date.--The amendment made by this section
shall take effect on the date of the enactment of this Act.

SEC. 5705. AMENDMENTS TO APPOINT EMPLOYEES.

(a) In General.--Subsection (a) of section 7471 (relating
to Tax Court employees) is amended to read as follows:
``(a) Appointment and Compensation.--
``(1) Clerk.--The Tax Court may appoint a clerk without
regard to the provisions of title 5, United States Code,
governing appointments in the competitive service. The clerk
shall serve at the pleasure of the Tax Court.
``(2) Law clerks and secretaries.--
``(A) In general.--The judges and special trial judges of
the Tax Court may appoint law clerks and secretaries, in such
numbers as the Tax Court may approve, without regard to the
provisions of title 5, United States Code, governing
appointments in the competitive service. Any such law clerk
or secretary shall serve at the pleasure of the appointing
judge.
``(B) Exemption from federal leave provisions.--A law clerk
appointed under this subsection shall be exempt from the
provisions of subchapter I of chapter 63 of title 5, United
States Code. Any unused sick leave or annual leave standing
to the employee's credit as of the effective date of this
subsection shall remain credited to the employee and shall be
available to the employee upon separation from the Federal
Government.
``(3) Other employees.--The Tax Court may appoint necessary
employees without regard to the provisions of title 5, United
States Code, governing appointments in the competitive
service. Such employees shall be subject to removal by the
Tax Court.
``(4) Pay.--The Tax Court may fix and adjust the
compensation for the clerk and other employees of the Tax
Court without regard to the provisions of chapter 51,
subchapter III of chapter 53, or section 5373 of title 5,
United States Code. To the maximum extent feasible, the Tax
Court shall compensate employees at rates consistent with
those for employees holding comparable positions in the
judicial branch.
``(5) Programs.--The Tax Court may establish programs for
employee evaluations, incentive awards, flexible work
schedules, premium pay, and resolution of employee
grievances.
``(6) Discrimination prohibited.--The Tax Court shall--
``(A) prohibit discrimination on the basis of race, color,
religion, age, sex, national origin, political affiliation,
marital status, or handicapping condition; and
``(B) promulgate procedures for resolving complaints of
discrimination by employees and applicants for employment.
``(7) Experts and consultants.--The Tax Court may procure
the services of experts and consultants under section 3109 of
title 5, United States Code.
``(8) Rights to certain appeals reserved.--Notwithstanding
any other provision of law, an individual who is an employee
of the Tax Court on the day before the effective date of this
subsection and who, as of that day, was entitled to--
``(A) appeal a reduction in grade or removal to the Merit
Systems Protection

[[Page S4965]]

Board under chapter 43 of title 5, United States Code,
``(B) appeal an adverse action to the Merit Systems
Protection Board under chapter 75 of title 5, United States
Code,
``(C) appeal a prohibited personnel practice described
under section 2302(b) of title 5, United States Code, to the
Merit Systems Protection Board under chapter 77 of that
title,
``(D) make an allegation of a prohibited personnel practice
described under section 2302(b) of title 5, United States
Code, with the Office of Special Counsel under chapter 12 of
that title for action in accordance with that chapter, or
``(E) file an appeal with the Equal Employment Opportunity
Commission under part 1614 of title 29 of the Code of Federal
Regulations,

shall be entitled to file such appeal or make such an
allegation so long as the individual remains an employee of
the Tax Court.
``(9) Competitive status.--Notwithstanding any other
provision of law, any employee of the Tax Court who has
completed at least 1 year of continuous service under a non-
temporary appointment with the Tax Court acquires a
competitive status for appointment to any position in the
competitive service for which the employee possesses the
required qualifications.
``(10) Merit system principles; prohibited personnel
practices; and preference eligibles.--Any personnel
management system of the Tax Court shall--
``(A) include the principles set forth in section 2301(b)
of title 5, United States Code;
``(B) prohibit personnel practices prohibited under section
2302(b) of title 5, United States Code; and
``(C) in the case of any individual who would be a
preference eligible in the executive branch, the Tax Court
will provide preference for that individual in a manner and
to an extent consistent with preference accorded to
preference eligibles in the executive branch.''.
(b) Effective Date.--The amendments made by this section
shall take effect on the date the United States Tax Court
adopts a personnel management system after the date of the
enactment of this Act.

SEC. 5706. EXPANDED USE OF TAX COURT PRACTICE FEE FOR PRO SE
TAXPAYERS.

(a) In General.--Section 7475(b) (relating to use of fees)
is amended by inserting before the period at the end ``and to
provide services to pro se taxpayers''.
(b) Effective Date.--The amendment made by this section
shall take effect on the date of the enactment of this Act.

PART II--TAX COURT PENSION AND COMPENSATION

SEC. 5711. ANNUITIES FOR SURVIVORS OF TAX COURT JUDGES WHO
ARE ASSASSINATED.

(a) Eligibility in Case of Death by Assassination.--
Subsection (h) of section 7448 (relating to annuities to
surviving spouses and dependent children of judges) is
amended to read as follows:
``(h) Entitlement to Annuity.--
``(1) In general.--
``(A) Annuity to surviving spouse.--If a judge described in
paragraph (2) is survived by a surviving spouse but not by a
dependent child, there shall be paid to such surviving spouse
an annuity beginning with the day of the death of the judge
or following the surviving spouse's attainment of the age of
50 years, whichever is the later, in an amount computed as
provided in subsection (m).
``(B) Annuity to child.--If such a judge is survived by a
surviving spouse and a dependent child or children, there
shall be paid to such surviving spouse an immediate annuity
in an amount computed as provided in subsection (m), and
there shall also be paid to or on behalf of each such child
an immediate annuity equal to the lesser of--
``(i) 10 percent of the average annual salary of such judge
(determined in accordance with subsection (m)), or
``(ii) 20 percent of such average annual salary, divided by
the number of such children.
``(C) Annuity to surviving dependent children.--If such a
judge leaves no surviving spouse but leaves a surviving
dependent child or children, there shall be paid to or on
behalf of each such child an immediate annuity equal to the
lesser of--
``(i) 20 percent of the average annual salary of such judge
(determined in accordance with subsection (m)), or
``(ii) 40 percent of such average annual salary, divided by
the number of such children.
``(2) Covered judges.--Paragraph (1) applies to any judge
electing under subsection (b)--
``(A) who dies while a judge after having rendered at least
5 years of civilian service computed as prescribed in
subsection (n), for the last 5 years of which the salary
deductions provided for by subsection (c)(1) or the deposits
required by subsection (d) have actually been made or the
salary deductions required by the civil service retirement
laws have actually been made, or
``(B) who dies by assassination after having rendered less
than 5 years of civilian service computed as prescribed in
subsection (n) if, for the period of such service, the salary
deductions provided for by subsection (c)(1) or the deposits
required by subsection (d) have actually been made.
``(3) Termination of annuity.--
``(A) In the case of a surviving spouse.--The annuity
payable to a surviving spouse under this subsection shall be
terminable upon such surviving spouse's death or such
surviving spouse's remarriage before attaining age 55.
``(B) In the case of a child.--The annuity payable to a
child under this subsection shall be terminable upon (i) the
child attaining the age of 18 years, (ii) the child's
marriage, or (iii) the child's death, whichever first occurs,
except that if such child is incapable of self-support by
reason of mental or physical disability the child's annuity
shall be terminable only upon death, marriage, or recovery
from such disability.
``(C) In the case of a dependent child after death of
surviving spouse.--In case of the death of a surviving spouse
of a judge leaving a dependent child or children of the judge
surviving such spouse, the annuity of such child or children
shall be recomputed and paid as provided in paragraph (1)(C).
``(D) Recomputation.--In any case in which the annuity of a
dependent child is terminated under this subsection, the
annuities of any remaining dependent child or children, based
upon the service of the same judge, shall be recomputed and
paid as though the child whose annuity was so terminated had
not survived such judge.
``(4) Special rule for assassinated judges.--In the case of
a survivor or survivors of a judge described in paragraph
(2)(B), there shall be deducted from the annuities otherwise
payable under this section an amount equal to--
``(A) the amount of salary deductions provided for by
subsection (c)(1) that would have been made if such
deductions had been made for 5 years of civilian service
computed as prescribed in subsection (n) before the judge's
death, reduced by
``(B) the amount of such salary deductions that were
actually made before the date of the judge's death.''.
(b) Definition of Assassination.--Section 7448(a) (relating
to definitions) is amended by adding at the end the following
new paragraph:
``(8) The terms `assassinated' and `assassination' mean the
killing of a judge that is motivated by the performance by
that judge of his or her official duties.''.
(c) Determination of Assassination.--Subsection (i) of
section 7448 is amended--
(1) by striking the subsection heading and inserting the
following:
``(i) Determinations by Chief Judge.--
``(1) Dependency and disability.--'',
(2) by moving the text 2 ems to the right, and
(3) by adding at the end the following new paragraph:
``(2) Assassination.--The chief judge shall determine
whether the killing of a judge was an assassination, subject
to review only by the Tax Court. The head of any Federal
agency that investigates the killing of a judge shall provide
information to the chief judge that would assist the chief
judge in making such a determination.''.
(d) Computation of Annuities.--Subsection (m) of section
7448 is amended--
(1) by striking the subsection heading and inserting the
following:
``(m) Computation of Annuities.--
``(1) In general.--'',
(2) by moving the text 2 ems to the right, and
(3) by adding at the end the following new paragraph:
``(2) Assassinated judges.--In the case of a judge who is
assassinated and who has served less than 3 years, the
annuity of the surviving spouse of such judge shall be based
upon the average annual salary received by such judge for
judicial service.''.
(e) Other Benefits.--Section 7448 is amended by adding at
the end the following:
``(u) Other Benefits.--In the case of a judge who is
assassinated, an annuity shall be paid under this section
notwithstanding a survivor's eligibility for or receipt of
benefits under chapter 81 of title 5, United States Code,
except that the annuity for which a surviving spouse is
eligible under this section shall be reduced to the extent
that the total benefits paid under this section and chapter
81 of that title for any year would exceed the current salary
for that year of the office of the judge.''.

SEC. 5712. COST-OF-LIVING ADJUSTMENTS FOR TAX COURT JUDICIAL
SURVIVOR ANNUITIES.

(a) In General.--Subsection (s) of section 7448 (relating
to annuities to surviving spouses and dependent children of
judges) is amended to read as follows:
``(s) Increases in Survivor Annuities.--Each time that an
increase is made under section 8340(b) of title 5, United
States Code, in annuities payable under subchapter III of
chapter 83 of that title, each annuity payable from the
survivors annuity fund under this section shall be increased
at the same time by the same percentage by which annuities
are increased under such section 8340(b).''.
(b) Effective Date.--The amendments made by this section
shall apply with respect to increases made under section
8340(b) of title 5, United States Code, in annuities payable
under subchapter III of chapter 83 of that title, taking
effect after the date of the enactment of this Act.

SEC. 5713. LIFE INSURANCE COVERAGE FOR TAX COURT JUDGES.

(a) In General.--Section 7447 (relating to retirement of
judges) is amended by adding at the end the following new
subsection:
``(j) Life Insurance Coverage.--For purposes of chapter 87
of title 5, United States Code (relating to life insurance),
any individual who is serving as a judge of the Tax Court or
who is retired under this section is deemed to be an employee
who is continuing in active employment.''.

[[Page S4966]]

(b) Effective Date.--The amendment made by this section
shall apply to any individual serving as a judge of the
United States Tax Court and to any retired judge of the
United States Tax Court on or after the date of the enactment
of this Act.

SEC. 5714. COST OF LIFE INSURANCE COVERAGE FOR TAX COURT
JUDGES AGE 65 OR OVER.

Section 7472 (relating to expenditures) is amended by
inserting after the first sentence the following new
sentence: ``Notwithstanding any other provision of law, the
Tax Court is authorized to pay on behalf of its judges, age
65 or over, any increase in the cost of Federal Employees'
Group Life Insurance imposed after April 24, 1999, including
any expenses generated by such payments, as authorized by the
chief judge in a manner consistent with such payments
authorized by the Judicial Conference of the United States
pursuant to section 604(a)(5) of title 28, United States
Code.''.

SEC. 5715. MODIFICATION OF TIMING OF LUMP-SUM PAYMENT OF
JUDGES' ACCRUED ANNUAL LEAVE.

(a) In General.--Section 7443 (relating to membership of
the Tax Court) is amended by adding at the end the following
new subsection:
``(h) Lump-Sum Payment of Judges' Accrued Annual Leave.--
Notwithstanding the provisions of sections 5551 and 6301 of
title 5, United States Code, when an individual subject to
the leave system provided in chapter 63 of that title is
appointed by the President to be a judge of the Tax Court,
the individual shall be entitled to receive, upon appointment
to the Tax Court, a lump-sum payment from the Tax Court of
the accumulated and accrued current annual leave standing to
the individual's credit as certified by the agency from which
the individual resigned.''.
(b) Effective Date.--The amendment made by this section
shall apply to any judge of the United States Tax Court who
has an outstanding leave balance on the date of the enactment
of this Act and to any individual appointed by the President
to serve as a judge of the United States Tax Court after such
date.

SEC. 5716. PARTICIPATION OF TAX COURT JUDGES IN THE THRIFT
SAVINGS PLAN.

(a) In General.--Section 7447 (relating to retirement of
judges), as amended by this Act, is amended by adding at the
end the following new subsection:
``(k) Thrift Savings Plan.--
``(1) Election to contribute.--
``(A) In general.--A judge of the Tax Court may elect to
contribute to the Thrift Savings Fund established by section
8437 of title 5, United States Code.
``(B) Period of election.--An election may be made under
this paragraph as provided under section 8432(b) of title 5,
United States Code, for individuals subject to chapter 84 of
such title.
``(2) Applicability of title 5 provisions.--Except as
otherwise provided in this subsection, the provisions of
subchapters III and VII of chapter 84 of title 5, United
States Code, shall apply with respect to a judge who makes an
election under paragraph (1).
``(3) Special rules.--
``(A) Amount contributed.--The amount contributed by a
judge to the Thrift Savings Fund in any pay period shall not
exceed the maximum percentage of such judge's basic pay for
such period as allowable under section 8440f of title 5,
United States Code. Basic pay does not include any retired
pay paid pursuant to this section.
``(B) Contributions for benefit of judge.--No contributions
may be made for the benefit of a judge under section 8432(c)
of title 5, United States Code.
``(C) Applicability of section 8433(b) of title 5 whether
or not judge retires.--Section 8433(b) of title 5, United
States Code, applies with respect to a judge who makes an
election under paragraph (1) and who either--
``(i) retires under subsection (b), or
``(ii) ceases to serve as a judge of the Tax Court but does
not retire under subsection (b).

Retirement under subsection (b) is a separation from service
for purposes of subchapters III and VII of chapter 84 of that
title.
``(D) Applicability of section 8351(b)(5) of title 5.--The
provisions of section 8351(b)(5) of title 5, United States
Code, shall apply with respect to a judge who makes an
election under paragraph (1).
``(E) Exception.--Notwithstanding subparagraph (C), if any
judge retires under this section, or resigns without having
met the age and service requirements set forth under
subsection (b)(2), and such judge's nonforfeitable account
balance is less than an amount that the Executive Director of
the Office of Personnel Management prescribes by regulation,
the Executive Director shall pay the nonforfeitable account
balance to the participant in a single payment.''.
(b) Effective Date.--The amendment made by this section
shall take effect on the date of the enactment of this Act.

SEC. 5717. EXEMPTION OF TEACHING COMPENSATION OF RETIRED
JUDGES FROM LIMITATION ON OUTSIDE EARNED
INCOME.

(a) In General.--Section 7447 (relating to retirement of
judges), as amended by this Act, is amended by adding at the
end the following new subsection:
``(l) Teaching Compensation of Retired Judges.--For
purposes of the limitation under section 501(a) of the Ethics
in Government Act of 1978 (5 U.S.C. App.), any compensation
for teaching approved under section 502(a)(5) of such Act
shall not be treated as outside earned income when received
by a judge of the Tax Court who has retired under subsection
(b) for teaching performed during any calendar year for which
such a judge has met the requirements of subsection (c), as
certified by the chief judge of the Tax Court.''.
(b) Effective Date.--The amendment made by this section
shall apply to any individual serving as a retired judge of
the United States Tax Court on or after the date of the
enactment of this Act.

SEC. 5718. GENERAL PROVISIONS RELATING TO MAGISTRATE JUDGES
OF THE TAX COURT.

(a) Title of Special Trial Judge Changed to Magistrate
Judge of the Tax Court.--The heading of section 7443A is
amended to read as follows:

``SEC. 7443A. MAGISTRATE JUDGES OF THE TAX COURT.''.

(b) Appointment, Tenure, and Removal.--Subsection (a) of
section 7443A is amended to read as follows:
``(a) Appointment, Tenure, and Removal.--
``(1) Appointment.--The chief judge may, from time to time,
appoint and reappoint magistrate judges of the Tax Court for
a term of 8 years. The magistrate judges of the Tax Court
shall proceed under such rules as may be promulgated by the
Tax Court.
``(2) Removal.--Removal of a magistrate judge of the Tax
Court during the term for which he or she is appointed shall
be only for incompetency, misconduct, neglect of duty, or
physical or mental disability, but the office of a magistrate
judge of the Tax Court shall be terminated if the judges of
the Tax Court determine that the services performed by the
magistrate judge of the Tax Court are no longer needed.
Removal shall not occur unless a majority of all the judges
of the Tax Court concur in the order of removal. Before any
order of removal shall be entered, a full specification of
the charges shall be furnished to the magistrate judge of the
Tax Court, and he or she shall be accorded by the judges of
the Tax Court an opportunity to be heard on the charges.''.
(c) Salary.--Section 7443A(d) (relating to salary) is
amended by striking ``90'' and inserting ``92''.
(d) Exemption From Federal Leave Provisions.--Section 7443A
is amended by adding at the end the following new subsection:
``(f) Exemption From Federal Leave Provisions.--
``(1) In general.--A magistrate judge of the Tax Court
appointed under this section shall be exempt from the
provisions of subchapter I of chapter 63 of title 5, United
States Code.
``(2) Treatment of unused leave.--
``(A) After service as magistrate judge.--If an individual
who is exempted under paragraph (1) from the subchapter
referred to in such paragraph was previously subject to such
subchapter and, without a break in service, again becomes
subject to such subchapter on completion of the
individual's service as a magistrate judge, the unused
annual leave and sick leave standing to the individual's
credit when such individual was exempted from this
subchapter is deemed to have remained to the individual's
credit.
``(B) Computation of annuity.--In computing an annuity
under section 8339 of title 5, United States Code, the total
service of an individual specified in subparagraph (A) who
retires on an immediate annuity or dies leaving a survivor or
survivors entitled to an annuity includes, without regard to
the limitations imposed by subsection (f) of such section
8339, the days of unused sick leave standing to the
individual's credit when such individual was exempted from
subchapter I of chapter 63 of title 5, United States Code,
except that these days will not be counted in determining
average pay or annuity eligibility.
``(C) Lump sum payment.--Any accumulated and current
accrued annual leave or vacation balances credited to a
magistrate judge as of the date of the enactment of this
subsection shall be paid in a lump sum at the time of
separation from service pursuant to the provisions and
restrictions set forth in section 5551 of title 5, United
States Code, and related provisions referred to in such
section.''.
(e) Conforming Amendments.--
(1) The heading of subsection (b) of section 7443A is
amended by striking ``Special Trial Judges'' and inserting
``Magistrate Judges of the Tax Court''.
(2) Section 7443A(b) is amended by striking ``special trial
judges of the court'' and inserting ``magistrate judges of
the Tax Court''.
(3) Subsections (c) and (d) of section 7443A are amended by
striking ``special trial judge'' and inserting ``magistrate
judge of the Tax Court'' each place it appears.
(4) Section 7443A(e) is amended by striking ``special trial
judges'' and inserting ``magistrate judges of the Tax
Court''.
(5) Section 7456(a) is amended by striking ``special trial
judge'' each place it appears and inserting ``magistrate
judge''.
(6) Subsection (c) of section 7471 is amended--
(A) by striking the subsection heading and inserting
``Magistrate Judges of the Tax Court.--'', and
(B) by striking ``special trial judges'' and inserting
``magistrate judges''.

[[Page S4967]]

SEC. 5719. ANNUITIES TO SURVIVING SPOUSES AND DEPENDENT
CHILDREN OF MAGISTRATE JUDGES OF THE TAX COURT.

(a) Definitions.--Section 7448(a) (relating to
definitions), as amended by this Act, is amended by
redesignating paragraphs (5), (6), (7), and (8) as paragraphs
(7), (8), (9), and (10), respectively, and by inserting after
paragraph (4) the following new paragraphs:
``(5) The term `magistrate judge' means a judicial officer
appointed pursuant to section 7443A, including any individual
receiving an annuity under section 7443B, or chapters 83 or
84, as the case may be, of title 5, United States Code,
whether or not performing judicial duties under section
7443C.
``(6) The term `magistrate judge's salary' means the salary
of a magistrate judge received under section 7443A(d), any
amount received as an annuity under section 7443B, or
chapters 83 or 84, as the case may be, of title 5, United
States Code, and compensation received under section
7443C.''.
(b) Election.--Subsection (b) of section 7448 (relating to
annuities to surviving spouses and dependent children of
judges) is amended--
(1) by striking the subsection heading and inserting the
following:
``(b) Election.--
``(1) Judges.--'',
(2) by moving the text 2 ems to the right, and
(3) by adding at the end the following new paragraph:
``(2) Magistrate judges.--Any magistrate judge may by
written election filed with the chief judge bring himself or
herself within the purview of this section. Such election
shall be filed not later than the later of 6 months after--
``(A) 6 months after the date of the enactment of this
paragraph,
``(B) the date the judge takes office, or
``(C) the date the judge marries.''.
(c) Conforming Amendments.--
(1) The heading of section 7448 is amended by inserting
``AND MAGISTRATE JUDGES'' after ``JUDGES''.
(2) The item relating to section 7448 in the table of
sections for part I of subchapter C of chapter 76 is amended
by inserting ``and magistrate judges'' after ``judges''.
(3) Subsections (c)(1), (d), (f), (g), (h), (j), (m), (n),
and (u) of section 7448, as amended by this Act, are each
amended--
(A) by inserting ``or magistrate judge'' after ``judge''
each place it appears other than in the phrase ``chief
judge'', and
(B) by inserting ``or magistrate judge's'' after
``judge's'' each place it appears.
(4) Section 7448(c) is amended--
(A) in paragraph (1), by striking ``Tax Court judges'' and
inserting ``Tax Court judicial officers'',
(B) in paragraph (2)--
(i) in subparagraph (A), by inserting ``and section
7443A(d)'' after ``(a)(4)'', and
(ii) in subparagraph (B), by striking ``subsection (a)(4)''
and inserting ``subsections (a)(4) and (a)(6)''.
(5) Section 7448(g) is amended by inserting ``or section
7443B'' after ``section 7447'' each place it appears, and by
inserting ``or an annuity'' after ``retired pay''.
(6) Section 7448(j)(1) is amended--
(A) in subparagraph (A), by striking ``service or retired''
and inserting ``service, retired'', and by inserting ``, or
receiving any annuity under section 7443B or chapters 83 or
84 of title 5, United States Code,'' after ``section 7447'',
and
(B) in the last sentence, by striking ``subsections (a)(6)
and (7)'' and inserting ``paragraphs (8) and (9) of
subsection (a)''.
(7) Section 7448(m)(1), as amended by this Act, is
amended--
(A) by inserting ``or any annuity under section 7443B or
chapters 83 or 84 of title 5, United States Code'' after
``7447(d)'', and
(B) by inserting ``or 7443B(m)(1)(B) after ``7447(f)(4)''.
(8) Section 7448(n) is amended by inserting ``his years of
service pursuant to any appointment under section 7443A,''
after ``of the Tax Court,''.
(9) Section 3121(b)(5)(E) is amended by inserting ``or
magistrate judge'' before ``of the United States Tax Court''.
(10) Section 210(a)(5)(E) of the Social Security Act is
amended by inserting ``or magistrate judge'' before ``of the
United States Tax Court''.

SEC. 5720. RETIREMENT AND ANNUITY PROGRAM.

(a) Retirement and Annuity Program.--Part I of subchapter C
of chapter 76 is amended by inserting after section 7443A the
following new section:

``SEC. 7443B. RETIREMENT FOR MAGISTRATE JUDGES OF THE TAX
COURT.

``(a) Retirement Based on Years of Service.--A magistrate
judge of the Tax Court to whom this section applies and who
retires from office after attaining the age of 65 years and
serving at least 14 years, whether continuously or otherwise,
as such magistrate judge shall, subject to subsection (f), be
entitled to receive, during the remainder of the magistrate
judge's lifetime, an annuity equal to the salary being
received at the time the magistrate judge leaves office.
``(b) Retirement Upon Failure of Reappointment.--A
magistrate judge of the Tax Court to whom this section
applies who is not reappointed following the expiration of
the term of office of such magistrate judge, and who retires
upon the completion of the term shall, subject to subsection
(f), be entitled to receive, upon attaining the age of 65
years and during the remainder of such magistrate judge's
lifetime, an annuity equal to that portion of the salary
being received at the time the magistrate judge leaves office
which the aggregate number of years of service, not to exceed
14, bears to 14, if--
``(1) such magistrate judge has served at least 1 full term
as a magistrate judge, and
``(2) not earlier than 9 months before the date on which
the term of office of such magistrate judge expires, and not
later than 6 months before such date, such magistrate judge
notified the chief judge of the Tax Court in writing that
such magistrate judge was willing to accept reappointment to
the position in which such magistrate judge was serving.
``(c) Service of at Least 8 Years.--A magistrate judge of
the Tax Court to whom this section applies and who retires
after serving at least 8 years, whether continuously or
otherwise, as such a magistrate judge shall, subject to
subsection (f), be entitled to receive, upon attaining the
age of 65 years and during the remainder of the magistrate
judge's lifetime, an annuity equal to that portion of the
salary being received at the time the magistrate judge leaves
office which the aggregate number of years of service, not to
exceed 14, bears to 14. Such annuity shall be reduced by \1/
6\ of 1 percent for each full month such magistrate judge was
under the age of 65 at the time the magistrate judge left
office, except that such reduction shall not exceed 20
percent.
``(d) Retirement for Disability.--A magistrate judge of the
Tax Court to whom this section applies, who has served at
least 5 years, whether continuously or otherwise, as such a
magistrate judge, and who retires or is removed from office
upon the sole ground of mental or physical disability shall,
subject to subsection (f), be entitled to receive, during the
remainder of the magistrate judge's lifetime, an annuity
equal to 40 percent of the salary being received at the time
of retirement or removal or, in the case of a magistrate
judge who has served for at least 10 years, an amount equal
to that proportion of the salary being received at the time
of retirement or removal which the aggregate number of years
of service, not to exceed 14, bears to 14.
``(e) Cost-of-Living Adjustments.--A magistrate judge of
the Tax Court who is entitled to an annuity under this
section is also entitled to a cost-of-living adjustment in
such annuity, calculated and payable in the same manner as
adjustments under section 8340(b) of title 5, United States
Code, except that any such annuity, as increased under this
subsection, may not exceed the salary then payable for the
position from which the magistrate judge retired or was
removed.
``(f) Election; Annuity in Lieu of Other Annuities.--
``(1) In general.--A magistrate judge of the Tax Court
shall be entitled to an annuity under this section if the
magistrate judge elects an annuity under this section by
notifying the chief judge of the Tax Court not later than the
later of--
``(A) 5 years after the magistrate judge of the Tax Court
begins judicial service, or
``(B) 5 years after the date of the enactment of this
subsection.

Such notice shall be given in accordance with procedures
prescribed by the Tax Court.
``(2) Annuity in lieu of other annuity.--A magistrate judge
who elects to receive an annuity under this section shall not
be entitled to receive--
``(A) any annuity to which such magistrate judge would
otherwise have been entitled under subchapter III of chapter
83, or under chapter 84 (except for subchapters III and VII),
of title 5, United States Code, for service performed as a
magistrate or otherwise,
``(B) an annuity or salary in senior status or retirement
under section 371 or 372 of title 28, United States Code,
``(C) retired pay under section 7447, or
``(D) retired pay under section 7296 of title 38, United
States Code.
``(3) Coordination with title 5.--A magistrate judge of the
Tax Court who elects to receive an annuity under this
section--
``(A) shall not be subject to deductions and contributions
otherwise required by section 8334(a) of title 5, United
States Code,
``(B) shall be excluded from the operation of chapter 84
(other than subchapters III and VII) of such title 5, and
``(C) is entitled to a lump-sum credit under section
8342(a) or 8424 of such title 5, as the case may be.
``(g) Calculation of Service.--For purposes of calculating
an annuity under this section--
``(1) service as a magistrate judge of the Tax Court to
whom this section applies may be credited, and
``(2) each month of service shall be credited as \1/12\ of
a year, and the fractional part of any month shall not be
credited.
``(h) Covered Positions and Service.--This section applies
to any magistrate judge of the Tax Court or special trial
judge of the Tax Court appointed under this subchapter, but
only with respect to service as such a magistrate judge or
special trial judge after a date not earlier than 9\1/2\
years before the date of the enactment of this subsection.
``(i) Payments Pursuant to Court Order.--
``(1) In general.--Payments under this section which would
otherwise be made to a magistrate judge of the Tax Court
based upon his or her service shall be paid (in whole or in
part) by the chief judge of the

[[Page S4968]]

Tax Court to another person if and to the extent expressly
provided for in the terms of any court decree of divorce,
annulment, or legal separation, or the terms of any court
order or court-approved property settlement agreement
incident to any court decree of divorce, annulment, or legal
separation. Any payment under this paragraph to a person bars
recovery by any other person.
``(2) Requirements for payment.--Paragraph (1) shall apply
only to payments made by the chief judge of the Tax Court
after the date of receipt by the chief judge of written
notice of such decree, order, or agreement, and such
additional information as the chief judge may prescribe.
``(3) Court defined.--For purposes of this subsection, the
term `court' means any court of any State, the District of
Columbia, the Commonwealth of Puerto Rico, Guam, the Northern
Mariana Islands, or the Virgin Islands, and any Indian tribal
court or courts of Indian offense.
``(j) Deductions, Contributions, and Deposits.--
``(1) Deductions.--Beginning with the next pay period after
the chief judge of the Tax Court receives a notice under
subsection (f) that a magistrate judge of the Tax Court has
elected an annuity under this section, the chief judge shall
deduct and withhold 1 percent of the salary of such
magistrate judge. Amounts shall be so deducted and withheld
in a manner determined by the chief judge. Amounts deducted
and withheld under this subsection shall be deposited in the
Treasury of the United States to the credit of the Tax Court
Judicial Officers' Retirement Fund. Deductions under this
subsection from the salary of a magistrate judge shall
terminate upon the retirement of the magistrate judge or upon
completion of 14 years of service for which contributions
under this section have been made, whether continuously or
otherwise, as calculated under subsection (g), whichever
occurs first.
``(2) Consent to deductions; discharge of claims.--Each
magistrate judge of the Tax Court who makes an election under
subsection (f) shall be deemed to consent and agree to the
deductions from salary which are made under paragraph (1).
Payment of such salary less such deductions (and any
deductions made under section 7448) is a full and complete
discharge and acquittance of all claims and demands for all
services rendered by such magistrate judge during the period
covered by such payment, except the right to those benefits
to which the magistrate judge is entitled under this section
(and section 7448).
``(k) Deposits for Prior Service.--Each magistrate judge of
the Tax Court who makes an election under subsection (f) may
deposit, for service performed before such election for which
contributions may be made under this section, an amount equal
to 1 percent of the salary received for that service. Credit
for any period covered by that service may not be allowed for
purposes of an annuity under this section until a deposit
under this subsection has been made for that period.
``(l) Individual Retirement Records.--The amounts deducted
and withheld under subsection (j), and the amounts deposited
under subsection (k), shall be credited to individual
accounts in the name of each magistrate judge of the Tax
Court from whom such amounts are received, for credit to the
Tax Court Judicial Officers' Retirement Fund.
``(m) Annuities Affected in Certain Cases.--
``(1) 1-year forfeiture for failure to perform judicial
duties.--Subject to paragraph (3), any magistrate judge of
the Tax Court who retires under this section and who fails to
perform judicial duties required of such individual by
section 7443C shall forfeit all rights to an annuity under
this section for a 1-year period which begins on the 1st day
on which such individual fails to perform such duties.
``(2) Permanent forfeiture of retired pay where certain
non-government services performed.--Subject to paragraph (3),
any magistrate judge of the Tax Court who retires under this
section and who thereafter performs (or supervises or directs
the performance of) legal or accounting services in the field
of Federal taxation for the individual's client, the
individual's employer, or any of such employer's clients,
shall forfeit all rights to an annuity under this section
for all periods beginning on or after the first day on
which the individual performs (or supervises or directs
the performance of) such services. The preceding sentence
shall not apply to any civil office or employment under
the Government of the United States.
``(3) Forfeitures not to apply where individual elects to
freeze amount of annuity.--
``(A) In general.--If a magistrate judge of the Tax Court
makes an election under this paragraph--
``(i) paragraphs (1) and (2) (and section 7443C) shall not
apply to such magistrate judge beginning on the date such
election takes effect, and
``(ii) the annuity payable under this section to such
magistrate judge, for periods beginning on or after the date
such election takes effect, shall be equal to the annuity to
which such magistrate judge is entitled on the day before
such effective date.
``(B) Election requirements.--An election under
subparagraph (A)--
``(i) may be made by a magistrate judge of the Tax Court
eligible for retirement under this section, and
``(ii) shall be filed with the chief judge of the Tax
Court.

Such an election, once it takes effect, shall be irrevocable.
``(C) Effective date of election.--Any election under
subparagraph (A) shall take effect on the first day of the
first month following the month in which the election is
made.
``(4) Accepting other employment.--Any magistrate judge of
the Tax Court who retires under this section and thereafter
accepts compensation for civil office or employment under the
United States Government (other than for the performance of
functions as a magistrate judge of the Tax Court under
section 7443C) shall forfeit all rights to an annuity under
this section for the period for which such compensation is
received. For purposes of this paragraph, the term
`compensation' includes retired pay or salary received in
retired status.
``(n) Lump-Sum Payments.--
``(1) Eligibility.--
``(A) In general.--Subject to paragraph (2), an individual
who serves as a magistrate judge of the Tax Court and--
``(i) who leaves office and is not reappointed as a
magistrate judge of the Tax Court for at least 31 consecutive
days,
``(ii) who files an application with the chief judge of the
Tax Court for payment of a lump-sum credit,
``(iii) is not serving as a magistrate judge of the Tax
Court at the time of filing of the application, and
``(iv) will not become eligible to receive an annuity under
this section within 31 days after filing the application,

is entitled to be paid the lump-sum credit. Payment of the
lump-sum credit voids all rights to an annuity under this
section based on the service on which the lump-sum credit is
based, until that individual resumes office as a magistrate
judge of the Tax Court.
``(B) Payment to survivors.--Lump-sum benefits authorized
by subparagraphs (C), (D), and (E) of this paragraph shall be
paid to the person or persons surviving the magistrate judge
of the Tax Court and alive on the date title to the payment
arises, in the order of precedence set forth in subsection
(o) of section 376 of title 28, United States Code, and in
accordance with the last 2 sentences of paragraph (1) of that
subsection. For purposes of the preceding sentence, the term
`judicial official' as used in subsection (o) of such section
376 shall be deemed to mean `magistrate judge of the Tax
Court' and the terms `Administrative Office of the United
States Courts' and `Director of the Administrative Office of
the United States Courts' shall be deemed to mean `chief
judge of the Tax Court'.
``(C) Payment upon death of judge before receipt of
annuity.--If a magistrate judge of the Tax Court dies before
receiving an annuity under this section, the lump-sum credit
shall be paid.
``(D) Payment of annuity remainder.--If all annuity rights
under this section based on the service of a deceased
magistrate judge of the Tax Court terminate before the total
annuity paid equals the lump-sum credit, the difference shall
be paid.
``(E) Payment upon death of judge during receipt of
annuity.--If a magistrate judge of the Tax Court who is
receiving an annuity under this section dies, any accrued
annuity benefits remaining unpaid shall be paid.
``(F) Payment upon termination.--Any accrued annuity
benefits remaining unpaid on the termination, except by
death, of the annuity of a magistrate judge of the Tax Court
shall be paid to that individual.
``(G) Payment upon accepting other employment.--Subject to
paragraph (2), a magistrate judge of the Tax Court who
forfeits rights to an annuity under subsection (m)(4) before
the total annuity paid equals the lump-sum credit shall be
entitled to be paid the difference if the magistrate judge of
the Tax Court files an application with the chief judge of
the Tax Court for payment of that difference. A payment under
this subparagraph voids all rights to an annuity on which the
payment is based.
``(2) Spouses and former spouses.--
``(A) In general.--Payment of the lump-sum credit under
paragraph (1)(A) or a payment under paragraph (1)(G)--
``(i) may be made only if any current spouse and any former
spouse of the magistrate judge of the Tax Court are notified
of the magistrate judge's application, and
``(ii) shall be subject to the terms of a court decree of
divorce, annulment, or legal separation, or any court or
court approved property settlement agreement incident to such
decree, if--

``(I) the decree, order, or agreement expressly relates to
any portion of the lump-sum credit or other payment involved,
and
``(II) payment of the lump-sum credit or other payment
would extinguish entitlement of the magistrate judge's spouse
or former spouse to any portion of an annuity under
subsection (i).

``(B) Notification.--Notification of a spouse or former
spouse under this paragraph shall be made in accordance with
such procedures as the chief judge of the Tax Court shall
prescribe. The chief judge may provide under such procedures
that subparagraph (A)(i) may be waived with respect to a
spouse or former spouse if the magistrate judge establishes
to the satisfaction of the chief judge that the whereabouts
of such spouse or former spouse cannot be determined.

[[Page S4969]]

``(C) Resolution of 2 or more orders.--The chief judge
shall prescribe procedures under which this paragraph shall
be applied in any case in which the chief judge receives 2 or
more orders or decrees described in subparagraph (A).
``(3) Definition.--For purposes of this subsection, the
term `lump-sum credit' means the unrefunded amount consisting
of--
``(A) retirement deductions made under this section from
the salary of a magistrate judge of the Tax Court,
``(B) amounts deposited under subsection (k) by a
magistrate judge of the Tax Court covering earlier service,
and
``(C) interest on the deductions and deposits which, for
any calendar year, shall be equal to the overall average
yield to the Tax Court Judicial Officers' Retirement Fund
during the preceding fiscal year from all obligations
purchased by the Secretary during such fiscal year under
subsection (o); but does not include interest--
``(i) if the service covered thereby aggregates 1 year or
less, or
``(ii) for the fractional part of a month in the total
service.
``(o) Tax Court Judicial Officers' Retirement Fund.--
``(1) Establishment.--There is established in the Treasury
a fund which shall be known as the `Tax Court Judicial
Officers' Retirement Fund'. Amounts in the Fund are
authorized to be appropriated for the payment of annuities,
refunds, and other payments under this section.
``(2) Investment of fund.--The Secretary shall invest, in
interest bearing securities of the United States, such
currently available portions of the Tax Court Judicial
Officers' Retirement Fund as are not immediately required for
payments from the Fund. The income derived from these
investments constitutes a part of the Fund.
``(3) Unfunded liability.--
``(A) In general.--There are authorized to be appropriated
to the Tax Court Judicial Officers' Retirement Fund amounts
required to reduce to zero the unfunded liability of the
Fund.
``(B) Unfunded liability.--For purposes of subparagraph
(A), the term `unfunded liability' means the estimated
excess, determined on an annual basis in accordance with the
provisions of section 9503 of title 31, United States Code,
of the present value of all benefits payable from the Tax
Court Judicial Officers' Retirement Fund over the sum of--
``(i) the present value of deductions to be withheld under
this section from the future basic pay of magistrate judges
of the Tax Court, plus
``(ii) the balance in the Fund as of the date the unfunded
liability is determined.
``(p) Participation in Thrift Savings Plan.--
``(1) Election to contribute.--
``(A) In general.--A magistrate judge of the Tax Court who
elects to receive an annuity under this section or under
section 5721 of the United States Tax Court Modernization Act
may elect to contribute an amount of such individual's basic
pay to the Thrift Savings Fund established by section 8437 of
title 5, United States Code.
``(B) Period of election.--An election may be made under
this paragraph as provided under section 8432(b) of title 5,
United States Code, for individuals subject to chapter 84 of
such title.
``(2) Applicability of title 5 provisions.--Except as
otherwise provided in this subsection, the provisions of
subchapters III and VII of chapter 84 of title 5, United
States Code, shall apply with respect to a magistrate judge
who makes an election under paragraph (1).
``(3) Special rules.--
``(A) Amount contributed.--The amount contributed by a
magistrate judge to the Thrift Savings Fund in any pay period
shall not exceed the maximum percentage of such judge's basic
pay for such pay period as allowable under section 8440f of
title 5, United States Code.
``(B) Contributions for benefit of judge.--No contributions
may be made for the benefit of a magistrate judge under
section 8432(c) of title 5, United States Code.
``(C) Applicability of section 8433(b) of title 5.--Section
8433(b) of title 5, United States Code, applies with respect
to a magistrate judge who makes an election under paragraph
(1) and--
``(i) who retires entitled to an immediate annuity under
this section (including a disability annuity under subsection
(d) of this section) or section 5721 of the United States Tax
Court Modernization Act,
``(ii) who retires before attaining age 65 but is entitled,
upon attaining age 65, to an annuity under this section or
section 5721 of the United States Tax Court Modernization
Act, or
``(iii) who retires before becoming entitled to an
immediate annuity, or an annuity upon attaining age 65, under
this section or section 5721 of the United States Tax Court
Modernization Act.
``(D) Separation from service.--With respect to a
magistrate judge to whom this subsection applies, retirement
under this section or section 5721 of the United States Tax
Court Modernization Act is a separation from service for
purposes of subchapters III and VII of chapter 84 of title 5,
United States Code.
``(4) Definitions.--For purposes of this subsection, the
terms `retirement' and `retire' include removal from office
under section 7443A(a)(2) on the sole ground of mental or
physical disability.
``(5) Offset.--In the case of a magistrate judge who
receives a distribution from the Thrift Savings Fund and who
later receives an annuity under this section, that annuity
shall be offset by an amount equal to the amount which
represents the Government's contribution to that person's
Thrift Savings Account, without regard to earnings
attributable to that amount. Where such an offset would
exceed 50 percent of the annuity to be received in the first
year, the offset may be divided equally over the first 2
years in which that person receives the annuity.
``(6) Exception.--Notwithstanding clauses (i) and (ii) of
paragraph (3)(C), if any magistrate judge retires under
circumstances making such magistrate judge eligible to make
an election under subsection (b) of section 8433 of title 5,
United States Code, and such magistrate judge's
nonforfeitable account balance is less than an amount that
the Executive Director of the Office of Personnel Management
prescribes by regulation, the Executive Director shall pay
the nonforfeitable account balance to the participant in a
single payment.''.
(b) Conforming Amendment.--The table of sections for part I
of subchapter C of chapter 76 is amended by inserting after
the item relating to section 7443A the following new item:

``Sec. 7443B. Retirement for magistrate judges of the Tax Court.''.

SEC. 5721. INCUMBENT MAGISTRATE JUDGES OF THE TAX COURT.

(a) Retirement Annuity Under Title 5 and Section 7443B of
the Internal Revenue Code of 1986.--A magistrate judge of the
United States Tax Court in active service on the date of the
enactment of this Act shall, subject to subsection (b), be
entitled, in lieu of the annuity otherwise provided under the
amendments made by this part, to--
(1) an annuity under subchapter III of chapter 83, or under
chapter 84 (except for subchapters III and VII), of title 5,
United States Code, as the case may be, for creditable
service before the date on which service would begin to be
credited for purposes of paragraph (2), and
(2) an annuity calculated under subsection (b) or (c) and
subsection (g) of section 7443B of the Internal Revenue Code
of 1986, as added by this Act, for any service as a
magistrate judge of the United States Tax Court or special
trial judge of the United States Tax Court but only with
respect to service as such a magistrate judge or special
trial judge after a date not earlier than 9\1/2\ years prior
to the date of the enactment of this Act (as specified in the
election pursuant to subsection (b)) for which deductions and
deposits are made under subsections (j) and (k) of such
section 7443B, as applicable, without regard to the minimum
number of years of service as such a magistrate judge of the
United States Tax Court, except that--
(A) in the case of a magistrate judge who retired with less
than 8 years of service, the annuity under subsection (c) of
such section 7443B shall be equal to that proportion of the
salary being received at the time the magistrate judge leaves
office which the years of service bears to 14, subject to a
reduction in accordance with subsection (c) of such
section 7443B if the magistrate judge is under age 65 at
the time he or she leaves office, and
(B) the aggregate amount of the annuity initially payable
on retirement under this subsection may not exceed the rate
of pay for the magistrate judge which is in effect on the day
before the retirement becomes effective.
(b) Filing of Notice of Election.--A magistrate judge of
the United States Tax Court shall be entitled to an annuity
under this section only if the magistrate judge files a
notice of that election with the chief judge of the United
States Tax Court specifying the date on which service would
begin to be credited under section 7443B of the Internal
Revenue Code of 1986, as added by this Act, in lieu of
chapter 83 or chapter 84 of title 5, United States Code. Such
notice shall be filed in accordance with such procedures as
the chief judge of the United States Tax Court shall
prescribe.
(c) Lump-Sum Credit Under Title 5.--A magistrate judge of
the United States Tax Court who makes an election under
subsection (b) shall be entitled to a lump-sum credit under
section 8342 or 8424 of title 5, United States Code, as the
case may be, for any service which is covered under section
7443B of the Internal Revenue Code of 1986, as added by this
Act, pursuant to that election, and with respect to which any
contributions were made by the magistrate judge under the
applicable provisions of title 5, United States Code.
(d) Recall.--With respect to any magistrate judge of the
United States Tax Court receiving an annuity under this
section who is recalled to serve under section 7443C of the
Internal Revenue Code of 1986, as added by this Act--
(1) the amount of compensation which such recalled
magistrate judge receives under such section 7443C shall be
calculated on the basis of the annuity received under this
section, and
(2) such recalled magistrate judge of the United States Tax
Court may serve as a reemployed annuitant to the extent
otherwise permitted under title 5, United States Code.

Section 7443B(m)(4) of the Internal Revenue Code of 1986, as
added by this Act, shall not apply with respect to service as
a reemployed annuitant described in paragraph (2).

[[Page S4970]]

SEC. 5722. PROVISIONS FOR RECALL.

(a) In General.--Part I of subchapter C of chapter 76, as
amended by this Act, is amended by inserting after section
7443B the following new section:

``SEC. 7443C. RECALL OF MAGISTRATE JUDGES OF THE TAX COURT.

``(a) Recalling of Retired Magistrate Judges.--Any
individual who has retired pursuant to section 7443B or the
applicable provisions of title 5, United States Code, upon
reaching the age and service requirements established
therein, may at or after retirement be called upon by the
chief judge of the Tax Court to perform such judicial duties
with the Tax Court as may be requested of such individual for
any period or periods specified by the chief judge; except
that in the case of any such individual--
``(1) the aggregate of such periods in any 1 calendar year
shall not (without such individual's consent) exceed 90
calendar days, and
``(2) such individual shall be relieved of performing such
duties during any period in which illness or disability
precludes the performance of such duties.

Any act, or failure to act, by an individual performing
judicial duties pursuant to this subsection shall have the
same force and effect as if it were the act (or failure to
act) of a magistrate judge of the Tax Court.
``(b) Compensation.--For the year in which a period of
recall occurs, the magistrate judge shall receive, in
addition to the annuity provided under the provisions of
section 7443B or under the applicable provisions of title 5,
United States Code, an amount equal to the difference between
that annuity and the current salary of the office to which
the magistrate judge is recalled. The annuity of the
magistrate judge who completes that period of service, who is
not recalled in a subsequent year, and who retired under
section 7443B, shall be equal to the salary in effect at the
end of the year in which the period of recall occurred for
the office from which such individual retired.
``(c) Rulemaking Authority.--The provisions of this section
may be implemented under such rules as may be promulgated by
the Tax Court.''.
(b) Conforming Amendment.--The table of sections for part I
of subchapter C of chapter 76, as amended by this Act, is
amended by inserting after the item relating to section 7443B
the following new item:

``Sec. 7443C. Recall of magistrate judges of the Tax Court.''.

SEC. 5723. EFFECTIVE DATE.

Except as otherwise provided, the amendments made by this
part shall take effect on the date of the enactment of this
Act.
______