S. 1793Senate115th Congress (2017-2019)In Committee

Taxpayer Bill of Rights Enhancement Act of 2017

A bill to amend the Internal Revenue Code of 1986 to enhance taxpayer rights, and for other purposes.

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The Taxpayer Bill of Rights Enhancement Act of 2017 amends the Internal Revenue Code to strengthen taxpayer privacy, appeal rights, and fairness in tax administration. It affects individual and corporate taxpayers, IRS employees, and contractors handling tax information.

Key Provisions

Raises civil damages for unauthorized inspection ($5,000) and disclosure ($10,000) of tax returns and adds punitive damages for willful or grossly negligent acts
Requires the Treasury to notify taxpayers of any proposed disciplinary action against IRS employees for improper disclosures
Mandates contractors and agents with tax data to meet confidentiality safeguards and undergo periodic compliance reviews
Increases the ceiling for civil damages in unauthorized collection actions to $1.5 million and allows punitive damages for reckless conduct
Extends the time limit to contest an IRS levy and to sue over levy actions from 9 months to 2 years
Waives user fees for installment agreements that use automated withdrawals
Provides protection for individuals whose retirement‑plan assets are wrongly levied, allowing rollover contributions without tax penalty
Requires Office of Chief Counsel review of offers‑in‑compromise before they are finalized
Expands the individual estimated‑tax exception to $2,000 and revises how underpayment penalties are calculated
Raises the small‑business estimated‑tax exception to $2,000 and increases the large‑corporation threshold to $1.5 million with inflation adjustments
Mandates electronic filing for all exempt‑organization returns and makes such filings publicly available in machine‑readable form
Creates a free electronic‑filing program for low‑income and elderly taxpayers and ensures at least one IRS appeals officer in every state, DC, and Puerto Rico

Legislative Activity

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1 earlier action

SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance. (Sponsor introductory remarks on measure: CR S5219)

Finance Committee

September 12, 2017

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SenateIntro Referral

Introduced in Senate

September 12, 2017

SenateIntro Referral

Read twice and referred to the Committee on Finance. (Sponsor introductory remarks on measure: CR S5219)

Finance Committee

September 12, 2017

Floor Debate

3 members

What members said about S. 1793 on the floor

1 Republican2 Democrats

Sen. Tim KaineD-VA · Sep 12, 2017

Mr. President, sexual assault is a major issue on our Nation's college campuses. Too many young people are sexually assaulted while in school. Alarmingly, the majority of these crimes will go…

Mr. President, sexual assault is a major issue on our Nation's college campuses. Too many young people are sexually assaulted while in school. Alarmingly, the majority of these crimes will go unreported. The consequences of these crimes are often destructive to a student's mental, physical, and emotional well-being. In addition, the trauma of the assault and its aftermath drives many survivors to drop out of school.

Sexual assault survivors deserve access to a safe and supportive educational environment. I have met with students in Virginia and across the Country who have expressed the need for someone on campus to turn to for unbiased advice and guidance following an assault. Given the prevalence of this issue, it is clear that our federal higher education policy must do more to prevent sexual assaults and ensure that survivors have access to and can navigate through a plethora of resources.

This is why I am pleased to introduce today the Survivor Outreach and Support Campus Act of 2017 or SOS Campus Act. The SOS Campus Act requires universities that receive Federal funding to establish an independent, on-campus advocate for survivors of sexual assault. The advocate will help students access all of the resources available to them, both on and off campus, in the wake of a sexual assault and will guide them through the process of reporting their assault if they choose to do so, acting always in the interests of the victim, not the university.

The SOS Campus Act requires that the confidential advocate is responsible for ensuring that survivors, regardless of whether they decide to report the crime, have access to emergency and follow-up medical care, guidance on reporting assaults to law enforcement, medical forensic or evidentiary exams, crisis intervention, and information on their legal rights. The advocate will also conduct a public information campaign on campus to inform students of their services, and train other university staff to provide information to students about the advocate.

I am proud to introduce this legislation that would ensure all college students across our Country have access to a supportive advocate following a sexual assault on campus. I strongly ertdourage my colleagues in the Senate to consider this legislation to help protect our students from sexual violence and its damaging impact.

Sen. Chris Van HollenD-MD · Sep 12, 2017

Mr. President, today I would like to discuss the importance of ensuring that federally funded infrastructure projects are built to withstand flood damage. As we work to provide Federal support to the…

Sen. Chuck GrassleyR-IA · Sep 12, 2017

Mr. President, the IRS has never been, and likely will never be, an agency anyone is glad to hear from. However, American taxpayers should at least have confidence that they will receive a fair shake…

Sen. Chuck GrassleyR-IA · Sep 12, 2017

Bill Text

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Introduced in SenateIssued September 12, 2017

115th CONGRESS

1st Session

S. 1793

IN THE SENATE OF THE UNITED STATES

September 12, 2017

Mr. Grassley (for himself and Mr. Thune) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to enhance taxpayer rights, and for other purposes.

Short title, etc

(a)

Short title

This Act may be cited as the Taxpayer Bill of Rights Enhancement Act of 2017.

(b)

Amendment of 1986 Code

Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986.

(c)

Table of contents

The table of contents for this Act is as follows:

Sec. 1. Short title, etc.

TITLE I—The right to privacy

Sec. 101. Civil damages for unauthorized disclosure or inspection.

Sec. 102. Compliance by contractors with confidentiality safeguards.

TITLE II—The right to appeal in an independent forum and to challenge the Internal Revenue Service position and be heard

Sec. 201. Increase in limitations on civil damages for certain unauthorized collection actions.

Sec. 202. Extension of time limit for contesting IRS levy.

TITLE III—The right to a fair and just tax system

Sec. 301. Waiver of user fee for installment agreements using automated withdrawals.

Sec. 302. Individuals held harmless on improper levy on retirement plans.

Sec. 303. Office of Chief Counsel review of offers-in-compromise.

Sec. 304. Increase in and expansion of individual estimated tax exception.

Sec. 305. Modifications to computation of individual estimated tax.

Sec. 306. Corporate estimated tax.

Sec. 307. Increase in large corporation threshold for estimated tax payments.

Sec. 308. Expansion of interest netting.

Sec. 309. Clarification of application of Federal tax deposit penalty.

TITLE IV—The right to be informed

Sec. 401. Collection activities with respect to joint return disclosable to either spouse based on oral request.

Sec. 402. Mandatory electronic filing for annual returns of exempt organizations.

TITLE V—The right to quality service

Sec. 501. Free electronic filing.

Sec. 502. Access to appeals.

The right to privacy

101.

Civil damages for unauthorized disclosure or inspection

(a)

Notice to Taxpayer

Subsection (e) of section 7431 is amended by adding at the end the following new sentences: The Secretary shall also notify such taxpayer if the Internal Revenue Service or, upon notice to the Secretary by a Federal or State agency, if such Federal or State agency, proposes an administrative determination as to disciplinary or adverse action against an employee arising from the employee’s unauthorized inspection or disclosure of the taxpayer’s return or return information. The notice described in this subsection shall include the date of the inspection or disclosure and the rights of the taxpayer under such administrative determination..

(b)

Payment Authority Clarified

(1)

In general

Section 7431 is amended by adding at the end the following new subsection:

(i)

Payment Authority

Claims pursuant to subsection (a)(1) shall be payable out of funds appropriated under section 1304 of title 31, United States Code.

(2)

Annual reports of payments

The Secretary of the Treasury shall annually report to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives regarding payments made from the United States Judgment Fund under section 7431(i) of the Internal Revenue Code of 1986.

(c)

Burden of Proof for Good Faith Exception Rests With Person Making Inspection or Disclosure

Section 7431(b) is amended by adding at the end the following new flush sentence:

In any proceeding involving the existence of a good faith but erroneous interpretation of section 6103, the burden of proof with respect to such issue shall be on the person who made the inspection or disclosure, or in the case of a suit pursuant to paragraph (a)(1), the United States.

(d)

Reports

Subsection (p) of section 6103 is amended by adding at the end the following new paragraph:

(9)

Report on willful unauthorized disclosure and inspection

As part of the report required by paragraph (3)(C) for each calendar year, the Secretary shall furnish information regarding the willful unauthorized disclosure and inspection of returns and return information, including the number, status, and results of—

(A)

administrative investigations,

(B)

civil lawsuits brought under section 7431 (including the amounts for which such lawsuits were settled and the amounts of damages awarded), and

(C)

criminal prosecutions.

(e)

Increase in amount of damages per violation

(1)

In general

Subparagraph (A) of section 7431(c)(1) is amended to read as follows:

(A)

the sum of—

(i)

$5,000 for each act of unauthorized inspection of a return or return information with respect to which such defendant is found liable, and

(ii)

$10,000 for each act of unauthorized disclosure of a return or return information with respect to which such defendant is found liable, or

(2)

Punitive damages

(A)

In general

Section 7431(c) is amended by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively, and by inserting after paragraph (1) the following new paragraph:

(2)

in the case of willful inspection or disclosure or an inspection or disclosure which is the result of gross negligence, punitive damages, plus

(B)

Conforming amendment

Subparagraph (B) of section 7431(c)(1) is amended to read as follows:

(B)

the actual damages sustained by the plaintiff as a result of such unauthorized inspection or disclosure, plus

(f)

Effective Dates

(1)

Notice

The amendment made by subsection (a) shall apply to determinations made after the date which is 180 days after the date of the enactment of this Act.

(2)

Payment authority

The amendment made by subsection (b)(1) shall take effect on the date which is 180 days after the date of the enactment of this Act.

(3)

Burden of proof

The amendments made by subsection (c) shall apply to inspections and disclosures occurring on and after the date which is 180 days after the date of the enactment of this Act.

(4)

Reports

Subsection (b)(2) and the amendment made by subsection (d) shall apply to calendar years ending after the date which is 180 days after the date of the enactment of this Act.

(5)

Increase in damages

The amendment made by subsection (e) shall apply to proceedings commenced after the date of the enactment of this Act.

102.

Compliance by contractors with confidentiality safeguards

(a)

In General

Section 6103(p), as amended by this Act, is amended by adding at the end the following new paragraph:

(10)

Disclosure to contractors and other agents

Notwithstanding any other provision of this section, no return or return information shall be disclosed to any contractor or other agent of a Federal, State, or local agency unless such agency, to the satisfaction of the Secretary—

(A)

has requirements in effect which require each such contractor or other agent which would have access to returns or return information to provide safeguards (within the meaning of paragraph (4)) to protect the confidentiality of such returns or return information,

(B)

agrees to conduct an on-site review every 3 years (or a mid-point review in the case of contracts or agreements of less than 3 years in duration) of each contractor or other agent to determine compliance with such requirements,

(C)

submits the findings of the most recent review conducted under subparagraph (B) to the Secretary as part of the report required by paragraph (4)(E), and

(D)

certifies to the Secretary for the most recent annual period that such contractor or other agent is in compliance with all such requirements.

The certification required by subparagraph (D) shall include the name and address of each contractor and other agent, a description of the contract or agreement with such contractor or other agent, and the duration of such contract or agreement. The requirements of this paragraph shall not apply to disclosures pursuant to subsection (n) for purposes of Federal tax administration.

(b)

Conforming Amendment

Subparagraph (B) of section 6103(p)(8) is amended by inserting or paragraph (10) after subparagraph (A).

(c)

Effective Date

(1)

In general

The amendments made by this section shall apply to disclosures made after the date of the enactment of this Act.

(2)

Certifications

The first certification under section 6103(p)(10)(D) of the Internal Revenue Code of 1986, as added by subsection (a), shall be made with respect to the portion of calendar year 2017 following the date of the enactment of this Act.

The right to appeal in an independent forum and to challenge the Internal Revenue Service position and be heard

201.

Increase in limitations on civil damages for certain unauthorized collection actions

(a)

In general

Section 7433(b) is amended by striking $1,000,000 ($100,000 and inserting $1,500,000 ($150,000.

(b)

Punitive damages in the case of reckless or intentional action

Subsection (b) of section 7433 is amended—

(1)

by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively, and by moving such subparagraphs 2 ems to the right,

(2)

by striking In any action and inserting the following:

(1)

In general

In any action

, and

(3)

by adding at the end the following new paragraph:

(2)

Punitive damages for willful and reckless actions

In any action brought under subsection (a) or petition filed under subsection (e) in which the defendant is found to be liable and to have acted recklessly or intentionally, the court may award the plaintiff punitive damages.

(c)

Period for bringing action

Paragraph (3) of section 7433(d) is amended by striking the date the right of action accrues and inserting the later of the date of on which administrative remedies available within the Internal Revenue Service have been exhausted or the date on which the taxpayer reasonably could have discovered that the actions of the officer or employee were done in disregard of a provision of this title or any regulation promulgated under this title.

(d)

Effective date

The amendments made by this section shall apply in the case of proceedings commenced after the date of the enactment of this Act.

202.

Extension of time limit for contesting IRS levy

(a)

Extension of Time for Return of Property Subject to Levy

Subsection (b) of section 6343 is amended by striking 9 months and inserting 2 years.

(b)

Period of Limitation on Suits

Subsection (c) of section 6532 is amended—

(1)

by striking 9 months in paragraph (1) and inserting 2 years, and

(2)

by striking 9-month in paragraph (2) and inserting 2-year.

(c)

Effective Date

The amendments made by this section shall apply to—

(1)

levies made after the date of the enactment of this Act, and

(2)

levies made on or before such date if the 9-month period has not expired under section 6343(b) of the Internal Revenue Code of 1986 (without regard to this section) as of such date.

III

The right to a fair and just tax system

301.

Waiver of user fee for installment agreements using automated withdrawals

(a)

In General

Section 6159 is amended by redesignating subsections (e) and (f) as subsections (f) and (g), respectively, and by inserting after subsection (d) the following new subsection:

(e)

Waiver of user fees for installment agreements using automated withdrawals

In the case of a taxpayer who enters into an installment agreement in which automated installment payments are agreed to, the Secretary shall waive the fee (if any) for entering into the installment agreement.

(b)

Effective Date

The amendments made by this section shall apply to agreements entered into on or after the date which is 180 days after the date of the enactment of this Act.

302.

Individuals held harmless on improper levy on retirement plans

(a)

In General

Section 6343 is amended by adding at the end the following new subsection:

(f)

Individuals Held Harmless on Wrongful Levy, etc. on Retirement Plan

(1)

In general

If the Secretary determines that an individual's account or benefit under an eligible retirement plan (as defined in section 402(c)(8)(B)) has been levied upon in a case to which subsection (b) or (d)(2)(A) applies and property or an amount of money is returned to the individual—

(A)

the individual may contribute such property or an amount equal to the sum of—

(i)

the amount of money so returned by the Secretary, and

(ii)

interest paid under subsection (c) on such amount of money,

into such eligible retirement plan if such contribution is permitted by the plan, or into an individual retirement plan (other than an endowment contract) to which a rollover contribution of a distribution from such eligible retirement plan is permitted, but only if such contribution is made not later than the due date (not including extensions) for filing the return of tax for the taxable year in which such property or amount of money is returned, and

(B)

the Secretary shall, at the time such property or amount of money is returned, notify such individual that a contribution described in subparagraph (A) may be made.

(2)

Treatment as rollover

The distribution on account of the levy and any contribution under paragraph (1) with respect to the return of such distribution shall be treated for purposes of this title as if such distribution and contribution were described in section 402(c), 402A(c)(3), 403(a)(4), 403(b)(8), 408(d)(3), 408A(d)(3), or 457(e)(16), whichever is applicable; except that—

(A)

the contribution shall be treated as having been made for the taxable year in which the distribution on account of the levy occurred, and the interest paid under subsection (c) shall be treated as earnings within the plan after the contribution and shall not be included in gross income, and

(B)

such contribution shall not be taken into account under section 408(d)(3)(B).

(3)

Refund, etc., of income tax on levy

(A)

In general

If any amount is includible in gross income for a taxable year by reason of a distribution on account of a levy referred to in paragraph (1) and any portion of such amount is treated as a rollover contribution under paragraph (2), any tax imposed by chapter 1 on such portion shall not be assessed, and if assessed shall be abated, and if collected shall be credited or refunded as an overpayment made on the due date for filing the return of tax for such taxable year.

(B)

Exception

Subparagraph (A) shall not apply to a rollover contribution under this subsection which is made from an eligible retirement plan which is not a Roth IRA or a designated Roth account (within the meaning of section 402A) to a Roth IRA or a designated Roth account under an eligible retirement plan.

(4)

Interest

Notwithstanding subsection (d), interest shall be allowed under subsection (c) in a case in which the Secretary makes a determination described in subsection (d)(2)(A) with respect to a levy upon an individual retirement plan.

(5)

Treatment of inherited accounts

For purposes of paragraph (1)(A), section 408(d)(3)(C) shall be disregarded in determining whether an individual retirement plan is a plan to which a rollover contribution of a distribution from the plan levied upon is permitted.

(b)

Effective Date

The amendment made by this section shall apply to amounts paid under subsections (b), (c), and (d)(2)(A) of section 6343 of the Internal Revenue Code of 1986 after December 31, 2017.

303.

Office of Chief Counsel review of offers-in-compromise

(a)

In General

Section 7122(b) is amended by striking Whenever a compromise and all that follows through his delegate and inserting If the Secretary determines that an opinion of the General Counsel for the Department of the Treasury, or the Counsel’s delegate, is required with respect to a compromise, there shall be placed on file in the office of the Secretary such opinion.

(b)

Conforming Amendments

Section 7122(b) is amended by striking the second and third sentences.

(c)

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 Act.

304.

Increase in and expansion of individual estimated tax exception

(a)

In general

Paragraph (1) of section 6654(e) is amended to read as follows:

(1)

Where tax is small amount

(A)

In general

No addition to tax shall be imposed under subsection (a) for any taxable year if—

(i)

the excess (if any) of the tax shown on the return for such taxable year (or, if no return is filed, the tax) over the sum of—

(I)

the estimated tax paid for such taxable year, plus

(II)

credit allowable under section 31, is less than

(ii)

$2,000.

(B)

Exception

(i)

In general

No amount of estimated tax paid for a taxable year shall be taken into account under subparagraph (A)(i)(I) after the first due date (as determined under subsection (c)(2)) for which the individual's required installment was greater than zero and more than 10 percent of the required installment was not paid by such date.

(ii)

Order of crediting payments

In determining whether a payment was made for purposes of clause (i), a payment of estimated tax shall be credited against unpaid required installments in the order in which such installments are required to be paid.

(b)

Effective Date

The amendments made by this section shall apply to taxable years beginning after December 31, 2017.

305.

Modifications to computation of individual estimated tax

(a)

In general

Section 6654 is amended by striking subsections (a) and (b) and inserting the following:

(a)

Addition to the Tax

(1)

In general

Except as otherwise provided in this section, in the case of any underpayment of estimated tax by an individual for a taxable year, there shall be added to the tax under chapter 1, the tax under chapter 2, and the tax under chapter 2A for such taxable year the sum of the amounts determined under paragraph (2) for each day for which there is an underpayment.

(2)

Amount of addition to tax

The amount determined under this paragraph for any day shall be the product of—

(A)

the underpayment rate established under subsection (b)(2) for such day, multiplied by

(B)

the amount of the underpayment for such day.

(b)

Amount of underpayment; underpayment rate

For purposes of subsection (a)—

(1)

Amount

The amount of underpayment on any day shall be the excess (if any) of—

(A)

the sum of the required installments for the taxable year the due dates for which are on or before such day, over

(B)

the sum of the amounts of estimated tax payments made for such taxable year on or before such day.

(2)

Determination of underpayment rate

(A)

In general

The underpayment rate with respect to any day in an installment underpayment period shall be the underpayment rate established under section 6621 for the first day of the calendar quarter in which such installment underpayment period begins.

(B)

Installment underpayment period

For purposes of subparagraph (A), the term installment underpayment period means the period beginning on the day after the due date for a required installment and ending on the due date for the subsequent required installment (or in the case of the 4th required installment, the 15th day of the 4th month following the close of a taxable year).

(C)

Daily rate

The rate determined under subparagraph (A) shall be applied on a daily basis and shall be based on the assumption of 365 days in a calendar year.

(3)

Termination of estimated tax underpayment

No day after the end of the installment underpayment period for the 4th required installment specified in paragraph (2)(B) for a taxable year shall be treated as a day of underpayment with respect to such taxable year.

(b)

Effective Date

The amendments made by this section shall apply to taxable years beginning after December 31, 2017.

306.

Corporate estimated tax

(a)

Increase in Small Tax Amount Exception

Section 6655(f) is amended by striking $500 and inserting $2,000.

(b)

Effective Date

The amendment made by this section shall apply to taxable years beginning after December 31, 2017.

307.

Increase in large corporation threshold for estimated tax payments

(a)

In General

Section 6655(g)(2) is amended—

(1)

by striking $1,000,000 in subparagraph (A) and inserting $1,500,000,

(2)

by striking the $1,000,000 amount specified in subparagraph (A) in subparagraph (B)(ii) and inserting the amount in effect for the taxable year under subparagraph (A), and

(3)

by inserting after subparagraph (B) the following new subparagraph:

(C)

Inflation adjustment

(i)

In general

In the case of any taxable year beginning in a calendar year after 2018, the $1,500,000 amount in subparagraph (A) shall be increased by an amount equal to—

(I)

such dollar amount, multiplied by

(II)

the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2017 for calendar year 1992 in subparagraph (B) thereof.

(ii)

Rounding

If any dollar amount, after being increased under paragraph (1), is not a multiple of $1,000, such dollar amount shall be rounded to the next lowest multiple of $1,000.

(b)

Effective Date

The amendments made by this section shall apply to taxable years beginning after December 31, 2017.

308.

Expansion of interest netting

(a)

In General

Subsection (d) of section 6621 is amended by adding at the end the following new sentence: Solely for purposes of the preceding sentence, section 6611(e) shall not apply..

(b)

Effective Date

The amendment made by this section shall apply to interest accrued after December 31, 2017.

309.

Clarification of application of Federal tax deposit penalty

Nothing in section 6656 of the Internal Revenue Code of 1986 shall be construed to permit the percentage specified in subsection (b)(1)(A)(iii) thereof to apply other than in a case where the failure is for more than 15 days.

The right to be informed

401.

Collection activities with respect to joint return disclosable to either spouse based on oral request

(a)

In General

Paragraph (8) of section 6103(e) is amended by striking in writing the first place it appears.

(b)

Effective Date

The amendment made by this section shall apply to requests made after the date of the enactment of this Act.

402.

Mandatory electronic filing for annual returns of exempt organizations

(a)

In general

Section 6033 is amended by redesignating subsection (n) as subsection (o) and by inserting after subsection (m) the following new subsection:

(n)

Mandatory electronic filing

Any organization required to file a return under this section shall file such return in electronic form.

(b)

Inspection of electronically filed annual returns

Subsection (b) of section 6104 is amended by adding at the end the following: Any annual return required to be filed electronically under section 6033(n) shall be made available by the Secretary to the public in machine readable format..

(c)

Effective date

(1)

In general

Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

(2)

Transitional relief

(A)

Small organizations

(i)

In general

In the case of any small organizations, or any other organizations for which the Secretary determines the application of the amendments made by subsection (a) would cause undue burden without a delay, the Secretary may delay the application of such amendments, but not later than taxable years beginning 2 years after the date of the enactment of this Act.

(ii)

Small organization

For purposes of clause (i), the term small organization means any organization—

(I)

the gross receipts of which for the taxable year are less than $200,000, and

(II)

the aggregate gross assets of which at the end of the taxable year are less than $500,000.

(B)

Organizations filing form 990–T

In the case of any organization described in section 511(a)(2) of the Internal Revenue Code of 1986 which is subject to the tax imposed by section 511(a)(1) of such Code on its unrelated business taxable income, or any organization required to file a return under section 6033 of such Code and include information under subsection (e) thereof, the Secretary may delay the application of the amendments made by this section, but not later than taxable years beginning 2 years after the date of the enactment of this Act.

The right to quality service

501.

Free electronic filing

(a)

In general

The Secretary of the Treasury (or the Secretary's delegate) shall, in cooperation with the private sector technology industry, maintain a program that provides free individual income tax preparation and electronic filing services to low-income taxpayers and elderly taxpayers.

(b)

Requirements of program

The Secretary shall by regulation or other guidance prescribe with respect to the program—

(1)

the qualifications, selection process, and contract term for businesses participating in the program,

(2)

a process for periodic review of businesses participating in the program,

(3)

procedures for terminating business participation in the program for failure to comply with any program requirements, and

(4)

such other procedures as the Secretary determines are necessary or appropriate to carry out the purposes of the program.

(c)

Free File program

The Internal Revenue Service Free File program, as set forth in the notice published in the Federal Register on November 4, 2002 (67 Fed. Reg. 67247), shall be treated as meeting the requirements of subsection (a).

502.

Access to appeals

Subsection (b) of section 3465 of the Internal Revenue Service Restructuring and Reform Act of 1998 is amended by striking an appeals officer is regularly available within each State and inserting there is at least one appeals officer and one settlement officer located and permanently available in each State, the District of Columbia, and Puerto Rico.