Public Law 116-25, Taxpayer First Act (July 1, 2019), GovInfo PLAW-116publ25
Summary
Public Law 116-25, the Taxpayer First Act (H.R. 3151), was approved July 1, 2019 and printed at 133 Stat. 981. Title I, Putting Taxpayers First, establishes the Internal Revenue Service Independent Office of Appeals under a Chief of Appeals who reports to the Commissioner, to resolve federal tax controversies without litigation, and adds provisions on customer service and enforcement. Title II, 21st Century IRS, addresses cybersecurity and identity protection, including a public-private partnership against identity theft refund fraud. Title III includes a bar on rehiring IRS employees involuntarily separated for misconduct.
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PUBLIC LAW 116–25—JULY 1, 2019 133 STAT. 981
Public Law 116–25
116th Congress
An Act
To amend the Internal Revenue Code of 1986 to modernize and improve the Internal July 1, 2019
Revenue Service, and for other purposes. [H.R. 3151]
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled, Taxpayer First
Act.
SECTION 1. SHORT TITLE; ETC.
(a) SHORT TITLE.—This Act may be cited as the ‘‘Taxpayer 26 USC 1 note.
First Act’’.
(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—PUTTING TAXPAYERS FIRST
Subtitle A—Independent Appeals Process
Sec. 1001. Establishment of Internal Revenue Service Independent Office of Ap-
peals.
Subtitle B—Improved Service
Sec. 1101. Comprehensive customer service strategy.
Sec. 1102. Low-income exception for payments otherwise required in connection
with a submission of an offer-in-compromise.
Subtitle C—Sensible Enforcement
Sec. 1201. Internal Revenue Service seizure requirements with respect to struc-
turing transactions.
Sec. 1202. Exclusion of interest received in action to recover property seized by the
Internal Revenue Service based on structuring transaction.
Sec. 1203. Clarification of equitable relief from joint liability.
Sec. 1204. Modification of procedures for issuance of third-party summons.
Sec. 1205. Private debt collection and special compliance personnel program.
Sec. 1206. Reform of notice of contact of third parties.
Sec. 1207. Modification of authority to issue designated summons.
Sec. 1208. Limitation on access of non-Internal Revenue Service employees to re-
turns and return information.
Subtitle D—Organizational Modernization
Sec. 1301. Office of the National Taxpayer Advocate.
Sec. 1302. Modernization of Internal Revenue Service organizational structure.
Subtitle E—Other Provisions
Sec. 1401. Return preparation programs for applicable taxpayers.
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Sec. 1402. Provision of information regarding low-income taxpayer clinics.
Sec. 1403. Notice from IRS regarding closure of taxpayer assistance centers.
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133 STAT. 982 PUBLIC LAW 116–25—JULY 1, 2019
Sec. 1404. Rules for seizure and sale of perishable goods restricted to only perish-
able goods.
Sec. 1405. Whistleblower reforms.
Sec. 1406. Customer service information.
Sec. 1407. Misdirected tax refund deposits.
TITLE II—21ST CENTURY IRS
Subtitle A—Cybersecurity and Identity Protection
Sec. 2001. Public-private partnership to address identity theft refund fraud.
Sec. 2002. Recommendations of Electronic Tax Administration Advisory Committee
regarding identity theft refund fraud.
Sec. 2003. Information sharing and analysis center.
Sec. 2004. Compliance by contractors with confidentiality safeguards.
Sec. 2005. Identity protection personal identification numbers.
Sec. 2006. Single point of contact for tax-related identity theft victims.
Sec. 2007. Notification of suspected identity theft.
Sec. 2008. Guidelines for stolen identity refund fraud cases.
Sec. 2009. Increased penalty for improper disclosure or use of information by pre-
parers of returns.
Subtitle B—Development of Information Technology
Sec. 2101. Management of Internal Revenue Service information technology.
Sec. 2102. Internet platform for Form 1099 filings.
Sec. 2103. Streamlined critical pay authority for information technology positions.
Subtitle C—Modernization of Consent-Based Income Verification System
Sec. 2201. Disclosure of taxpayer information for third-party income verification.
Sec. 2202. Limit redisclosures and uses of consent-based disclosures of tax return
information.
Subtitle D—Expanded Use of Electronic Systems
Sec. 2301. Electronic filing of returns.
Sec. 2302. Uniform standards for the use of electronic signatures for disclosure au-
thorizations to, and other authorizations of, practitioners.
Sec. 2303. Payment of taxes by debit and credit cards.
Sec. 2304. Authentication of users of electronic services accounts.
Subtitle E—Other Provisions
Sec. 2401. Repeal of provision regarding certain tax compliance procedures and re-
ports.
Sec. 2402. Comprehensive training strategy.
TITLE III—MISCELLANEOUS PROVISIONS
Subtitle A—Reform of Laws Governing Internal Revenue Service Employees
Sec. 3001. Prohibition on rehiring any employee of the Internal Revenue Service
who was involuntarily separated from service for misconduct.
Sec. 3002. Notification of unauthorized inspection or disclosure of returns and re-
turn information.
Subtitle B—Provisions Relating to Exempt Organizations
Sec. 3101. Mandatory e-filing by exempt organizations.
Sec. 3102. Notice required before revocation of tax-exempt status for failure to file
return.
Subtitle C—Revenue Provision
Sec. 3201. Increase in penalty for failure to file.
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TITLE IV—BUDGETARY EFFECTS
Sec. 4001. Determination of budgetary effects.
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PUBLIC LAW 116–25—JULY 1, 2019 133 STAT. 983
TITLE I—PUTTING TAXPAYERS FIRST
Subtitle A—Independent Appeals Process
SEC. 1001. ESTABLISHMENT OF INTERNAL REVENUE SERVICE INDE-
PENDENT OFFICE OF APPEALS.
(a) IN GENERAL.—Section 7803 is amended by adding at the 26 USC 7803.
end the following new subsection:
‘‘(e) INDEPENDENT OFFICE OF APPEALS.—
‘‘(1) ESTABLISHMENT.—There is established in the Internal
Revenue Service an office to be known as the ‘Internal Revenue
Service Independent Office of Appeals’.
‘‘(2) CHIEF OF APPEALS.—
‘‘(A) IN GENERAL.—The Internal Revenue Service Inde-
pendent Office of Appeals shall be under the supervision
and direction of an official to be known as the ‘Chief of
Appeals’. The Chief of Appeals shall report directly to the
Commissioner of Internal Revenue and shall be entitled
to compensation at the same rate as the highest rate of
basic pay established for the Senior Executive Service
under section 5382 of title 5, United States Code.
‘‘(B) APPOINTMENT.—The Chief of Appeals shall be
appointed by the Commissioner of Internal Revenue with-
out regard to the provisions of title 5, United States Code,
relating to appointments in the competitive service or the
Senior Executive Service.
‘‘(C) QUALIFICATIONS.—An individual appointed under
subparagraph (B) shall have experience and expertise in—
‘‘(i) administration of, and compliance with, Fed-
eral tax laws,
‘‘(ii) a broad range of compliance cases, and
‘‘(iii) management of large service organizations.
‘‘(3) PURPOSES AND DUTIES OF OFFICE.—It shall be the
function of the Internal Revenue Service Independent Office
of Appeals to resolve Federal tax controversies without litiga-
tion on a basis which—
‘‘(A) is fair and impartial to both the Government and
the taxpayer,
‘‘(B) promotes a consistent application and interpreta-
tion of, and voluntary compliance with, the Federal tax
laws, and
‘‘(C) enhances public confidence in the integrity and
efficiency of the Internal Revenue Service.
‘‘(4) RIGHT OF APPEAL.—The resolution process described
in paragraph (3) shall be generally available to all taxpayers.
‘‘(5) LIMITATION ON DESIGNATION OF CASES AS NOT ELIGIBLE
FOR REFERRAL TO INDEPENDENT OFFICE OF APPEALS.—
‘‘(A) IN GENERAL.—If any taxpayer which is in receipt Notice.
of a notice of deficiency authorized under section 6212
requests referral to the Internal Revenue Service Inde-
pendent Office of Appeals and such request is denied, the
Commissioner of Internal Revenue shall provide such tax-
payer a written notice which—
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‘‘(i) provides a detailed description of the facts
involved, the basis for the decision to deny the request,
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133 STAT. 984 PUBLIC LAW 116–25—JULY 1, 2019
and a detailed explanation of how the basis of such
decision applies to such facts, and
‘‘(ii) describes the procedures prescribed under
subparagraph (C) for protesting the decision to deny
the request.
‘‘(B) REPORT TO CONGRESS.—The Commissioner of
Internal Revenue shall submit a written report to Congress
on an annual basis which includes the number of requests
described in subparagraph (A) which were denied and the
reasons (described by category) that such requests were
denied.
‘‘(C) PROCEDURES FOR PROTESTING DENIAL OF
REQUEST.—The Commissioner of Internal Revenue shall
prescribe procedures for protesting to the Commissioner
of Internal Revenue a denial of a request described in
subparagraph (A).
‘‘(D) NOT APPLICABLE TO FRIVOLOUS POSITIONS.—This
paragraph shall not apply to a request for referral to the
Internal Revenue Service Independent Office of Appeals
which is denied on the basis that the issue involved is
a frivolous position (within the meaning of section 6702(c)).
‘‘(6) STAFF.—
‘‘(A) IN GENERAL.—All personnel in the Internal Rev-
enue Service Independent Office of Appeals shall report
to the Chief of Appeals.
‘‘(B) ACCESS TO STAFF OF OFFICE OF THE CHIEF
COUNSEL.—The Chief of Appeals shall have authority to
obtain legal assistance and advice from the staff of the
Office of the Chief Counsel. The Chief Counsel shall ensure,
to the extent practicable, that such assistance and advice
is provided by staff of the Office of the Chief Counsel
who were not involved in the case with respect to which
such assistance and advice is sought and who are not
involved in preparing such case for litigation.
‘‘(7) ACCESS TO CASE FILES.—
Deadline. ‘‘(A) IN GENERAL.—In any case in which a conference
with the Internal Revenue Service Independent Office of
Appeals has been scheduled upon request of a specified
taxpayer, the Chief of Appeals shall ensure that such tax-
payer is provided access to the nonprivileged portions of
the case file on record regarding the disputed issues (other
than documents provided by the taxpayer to the Internal
Revenue Service) not later than 10 days before the date
of such conference.
Applicability. ‘‘(B) TAXPAYER ELECTION TO EXPEDITE CONFERENCE.—
If the taxpayer so elects, subparagraph (A) shall be applied
by substituting ‘the date of such conference’ for ‘10 days
before the date of such conference’.
‘‘(C) SPECIFIED TAXPAYER.—For purposes of this para-
graph—
Definition. ‘‘(i) IN GENERAL.—The term ‘specified taxpayer’
means—
‘‘(I) in the case of any taxpayer who is a nat-
ural person, a taxpayer whose adjusted gross
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income does not exceed $400,000 for the taxable
year to which the dispute relates, and
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PUBLIC LAW 116–25—JULY 1, 2019 133 STAT. 985
‘‘(II) in the case of any other taxpayer, a tax-
payer whose gross receipts do not exceed $5 million
for the taxable year to which the dispute relates.
‘‘(ii) AGGREGATION RULE.—Rules similar to the Applicability.
rules of section 448(c)(2) shall apply for purposes of
clause (i)(II).’’.
(b) CONFORMING AMENDMENTS.—
(1) The following provisions are each amended by striking
‘‘Internal Revenue Service Office of Appeals’’ and inserting
‘‘Internal Revenue Service Independent Office of Appeals’’:
(A) Section 6015(c)(4)(B)(ii)(I). 26 USC 6015.
(B) Section 6320(b)(1).
(C) Subsections (b)(1) and (d)(3) of section 6330.
(D) Section 6603(d)(3)(B).
(E) Section 6621(c)(2)(A)(i).
(F) Section 7122(e)(2).
(G) Subsections (a), (b)(1), (b)(2), and (c)(1) of section
7123.
(H) Subsections (c)(7)(B)(i) and (g)(2)(A) of section 7430.
(I) Section 7522(b)(3).
(J) Section 7612(c)(2)(A).
(2) Section 7430(c)(2) is amended by striking ‘‘Internal Rev-
enue Service Office of Appeals’’ each place it appears and
inserting ‘‘Internal Revenue Service Independent Office of
Appeals’’.
(3) The heading of section 6330(d)(3) is amended by
inserting ‘‘INDEPENDENT’’ after ‘‘IRS’’.
(c) OTHER REFERENCES.—Any reference in any provision of 26 USC 7803
law, or regulation or other guidance, to the Internal Revenue Service note.
Office of Appeals shall be treated as a reference to the Internal
Revenue Service Independent Office of Appeals.
(d) SAVINGS PROVISIONS.—Rules similar to the rules of para- Applicability.
graphs (2) through (6) of section 1001(b) of the Internal Revenue 26 USC 7803
Service Restructuring and Reform Act of 1998 shall apply for pur- note.
poses of this section (and the amendments made by this section).
(e) EFFECTIVE DATE.— 26 USC 7803
(1) IN GENERAL.—Except as otherwise provided in this sub- note.
section, the amendments made by this section shall take effect
on the date of the enactment of this Act.
(2) ACCESS TO CASE FILES.—Section 7803(e)(7) of the Applicability.
Internal Revenue Code of 1986, as added by subsection (a), Time period.
shall apply to conferences occurring after the date which is
1 year after the date of the enactment of this Act.
Subtitle B—Improved Service
SEC. 1101. COMPREHENSIVE CUSTOMER SERVICE STRATEGY. 26 USC 7804
note.
(a) IN GENERAL.—Not later than the date which is 1 year Deadline.
after the date of the enactment of this Act, the Secretary of the
Treasury (or the Secretary’s delegate) shall submit to Congress
a written comprehensive customer service strategy for the Internal
Revenue Service. Such strategy shall include—
(1) a plan to provide assistance to taxpayers that is secure, Plan.
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designed to meet reasonable taxpayer expectations, and adopts
appropriate best practices of customer service provided in the
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133 STAT. 986 PUBLIC LAW 116–25—JULY 1, 2019
private sector, including online services, telephone call back
services, and training of employees providing customer services;
Assessment. (2) a thorough assessment of the services that the Internal
Revenue Service can co-locate with other Federal services or
offer as self-service options;
Proposals. (3) proposals to improve Internal Revenue Service customer
Time periods. service in the short term (the current and following fiscal
year), medium term (approximately 3 to 5 fiscal years), and
long term (approximately 10 fiscal years);
Plan. (4) a plan to update guidance and training materials for
customer service employees of the Internal Revenue Service,
including the Internal Revenue Manual, to reflect such strategy;
and
(5) identified metrics and benchmarks for quantitatively
measuring the progress of the Internal Revenue Service in
implementing such strategy.
Deadline. (b) UPDATED GUIDANCE AND TRAINING MATERIALS.—Not later
than 2 years after the date of the enactment of this Act, the
Secretary of the Treasury (or the Secretary’s delegate) shall make
available the updated guidance and training materials described
in subsection (a)(4) (including the Internal Revenue Manual). Such
updated guidance and training materials (including the Internal
Revenue Manual) shall be written in a manner so as to be easily
understood by customer service employees of the Internal Revenue
Service and shall provide clear instructions.
SEC. 1102. LOW-INCOME EXCEPTION FOR PAYMENTS OTHERWISE
REQUIRED IN CONNECTION WITH A SUBMISSION OF AN
OFFER-IN-COMPROMISE.
26 USC 7122. (a) IN GENERAL.—Section 7122(c) is amended by adding at
the end the following new paragraph:
‘‘(3) EXCEPTION FOR LOW-INCOME TAXPAYERS.—Paragraph
(1), and any user fee otherwise required in connection with
the submission of an offer-in-compromise, shall not apply to
any offer-in-compromise with respect to a taxpayer who is
an individual with adjusted gross income, as determined for
the most recent taxable year for which such information is
available, which does not exceed 250 percent of the applicable
poverty level (as determined by the Secretary).’’.
26 USC 122 note. (b) EFFECTIVE DATE.—The amendment made by this section
shall apply to offers-in-compromise submitted after the date of
the enactment of this Act.
Subtitle C—Sensible Enforcement
SEC. 1201. INTERNAL REVENUE SERVICE SEIZURE REQUIREMENTS
WITH RESPECT TO STRUCTURING TRANSACTIONS.
Section 5317(c)(2) of title 31, United States Code, is amended—
(1) by striking ‘‘Any property’’ and inserting the following:
‘‘(A) IN GENERAL.—Any property’’; and
(2) by adding at the end the following:
‘‘(B) INTERNAL REVENUE SERVICE SEIZURE REQUIRE-
MENTS WITH RESPECT TO STRUCTURING TRANSACTIONS.—
‘‘(i) PROPERTY DERIVED FROM AN ILLEGAL SOURCE.—
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Property may only be seized by the Internal Revenue
Service pursuant to subparagraph (A) by reason of
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PUBLIC LAW 116–25—JULY 1, 2019 133 STAT. 987
a claimed violation of section 5324 if the property
to be seized was derived from an illegal source or
the funds were structured for the purpose of concealing
the violation of a criminal law or regulation other
than section 5324.
‘‘(ii) NOTICE.—Not later than 30 days after prop- Deadline.
erty is seized by the Internal Revenue Service pursuant
to subparagraph (A), the Internal Revenue Service
shall—
‘‘(I) make a good faith effort to find all persons
with an ownership interest in such property; and
‘‘(II) provide each such person so found with
a notice of the seizure and of the person’s rights
under clause (iv).
‘‘(iii) EXTENSION OF NOTICE UNDER CERTAIN CIR-
CUMSTANCES.—The Internal Revenue Service may
apply to a court of competent jurisdiction for one 30-
day extension of the notice requirement under clause
(ii) if the Internal Revenue Service can establish prob-
able cause of an imminent threat to national security
or personal safety necessitating such extension.
‘‘(iv) POST-SEIZURE HEARING.—If a person with an Time period.
ownership interest in property seized pursuant to
subparagraph (A) by the Internal Revenue Service
requests a hearing by a court of competent jurisdiction
within 30 days after the date on which notice is pro-
vided under subclause (ii), such property shall be
returned unless the court holds an adversarial hearing
and finds within 30 days of such request (or such
longer period as the court may provide, but only on
request of an interested party) that there is probable
cause to believe that there is a violation of section
5324 involving such property and probable cause to
believe that the property to be seized was derived
from an illegal source or the funds were structured
for the purpose of concealing the violation of a criminal
law or regulation other than section 5324.’’.
SEC. 1202. EXCLUSION OF INTEREST RECEIVED IN ACTION TO
RECOVER PROPERTY SEIZED BY THE INTERNAL REVENUE
SERVICE BASED ON STRUCTURING TRANSACTION.
(a) IN GENERAL.—Part III of subchapter B of chapter 1 is
amended by inserting before section 140 the following new section:
‘‘SEC. 139H. INTEREST RECEIVED IN ACTION TO RECOVER PROPERTY 26 USC 139H.
SEIZED BY THE INTERNAL REVENUE SERVICE BASED ON
STRUCTURING TRANSACTION.
‘‘Gross income shall not include any interest received from
the Federal Government in connection with an action to recover
property seized by the Internal Revenue Service pursuant to section
5317(c)(2) of title 31, United States Code, by reason of a claimed
violation of section 5324 of such title.’’.
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133 STAT. 988 PUBLIC LAW 116–25—JULY 1, 2019
(b) CLERICAL AMENDMENT.—The table of sections for part III
26 USC 101 prec. of subchapter B of chapter 1 is amended by inserting before the
item relating to section 140 the following new item:
‘‘Sec. 139H. Interest received in action to recover property seized by the Internal
Revenue Service based on structuring transaction.’’.
26 USC 139H (c) EFFECTIVE DATE.—The amendments made by this section
note. shall apply to interest received on or after the date of the enactment
of this Act.
SEC. 1203. CLARIFICATION OF EQUITABLE RELIEF FROM JOINT
LIABILITY.
26 USC 6015. (a) IN GENERAL.—Section 6015 is amended—
(1) in subsection (e), by adding at the end the following
new paragraph:
‘‘(7) STANDARD AND SCOPE OF REVIEW.—Any review of a
determination made under this section shall be reviewed de
novo by the Tax Court and shall be based upon—
‘‘(A) the administrative record established at the time
of the determination, and
‘‘(B) any additional newly discovered or previously
unavailable evidence.’’; and
(2) by amending subsection (f) to read as follows:
‘‘(f) EQUITABLE RELIEF.—
‘‘(1) IN GENERAL.—Under procedures prescribed by the Sec-
retary, if—
‘‘(A) taking into account all the facts and cir-
cumstances, it is inequitable to hold the individual liable
for any unpaid tax or any deficiency (or any portion of
either), and
‘‘(B) relief is not available to such individual under
subsection (b) or (c),
the Secretary may relieve such individual of such liability.
‘‘(2) LIMITATION.—A request for equitable relief under this
subsection may be made with respect to any portion of any
liability that—
‘‘(A) has not been paid, provided that such request
is made before the expiration of the applicable period of
limitation under section 6502, or
‘‘(B) has been paid, provided that such request is made
during the period in which the individual could submit
a timely claim for refund or credit of such payment.’’.
26 USC 6015 (b) EFFECTIVE DATE.—The amendments made by this section
note. shall apply to petitions or requests filed or pending on or after
the date of the enactment of this Act.
SEC. 1204. MODIFICATION OF PROCEDURES FOR ISSUANCE OF THIRD-
PARTY SUMMONS.
(a) IN GENERAL.—Section 7609(f) is amended by adding at
the end the following flush sentence:
‘‘The Secretary shall not issue any summons described in the pre-
ceding sentence unless the information sought to be obtained is
narrowly tailored to information that pertains to the failure (or
potential failure) of the person or group or class of persons referred
to in paragraph (2) to comply with one or more provisions of
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the internal revenue law which have been identified for purposes
of such paragraph.’’.
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PUBLIC LAW 116–25—JULY 1, 2019 133 STAT. 989
(b) EFFECTIVE DATE.—The amendments made by this section Applicability.
shall apply to summonses served after the date that is 45 days Time period.
26 USC 7609.
after the date of the enactment of this Act.
SEC. 1205. PRIVATE DEBT COLLECTION AND SPECIAL COMPLIANCE
PERSONNEL PROGRAM.
(a) CERTAIN TAX RECEIVABLES NOT ELIGIBLE FOR COLLECTION
UNDER TAX COLLECTION CONTRACTS.—Section 6306(d)(3) is 26 USC 6306.
amended by striking ‘‘or’’ at the end of subparagraph (C) and
by inserting after subparagraph (D) the following new subpara-
graphs:
‘‘(E) a taxpayer substantially all of whose income con-
sists of disability insurance benefits under section 223 of
the Social Security Act or supplemental security income
benefits under title XVI of the Social Security Act (including
supplemental security income benefits of the type described
in section 1616 of such Act or section 212 of Public Law
93–66), or
‘‘(F) a taxpayer who is an individual with adjusted
gross income, as determined for the most recent taxable
year for which such information is available, which does
not exceed 200 percent of the applicable poverty level (as
determined by the Secretary),’’.
(b) DETERMINATION OF INACTIVE TAX RECEIVABLES ELIGIBLE
FOR COLLECTION UNDER TAX COLLECTION CONTRACTS.—Section
6306(c)(2)(A)(ii) is amended by striking ‘‘more than 1⁄3 of the period
of the applicable statute of limitation has lapsed’’ and inserting
‘‘more than 2 years has passed since assessment’’.
(c) MAXIMUM LENGTH OF INSTALLMENT AGREEMENTS OFFERED
UNDER TAX COLLECTION CONTRACTS.—Section 6306(b)(1)(B) is
amended by striking ‘‘5 years’’ and inserting ‘‘7 years’’.
(d) CLARIFICATION THAT SPECIAL COMPLIANCE PERSONNEL PRO-
GRAM ACCOUNT MAY BE USED FOR PROGRAM COSTS.—
(1) IN GENERAL.—Section 6307(b) is amended—
(A) in paragraph (2), by striking all that follows ‘‘under
such program’’ and inserting a period, and
(B) in paragraph (3), by striking all that follows ‘‘out
of such account’’ and inserting ‘‘for other than program
costs.’’.
(2) COMMUNICATIONS, SOFTWARE, AND TECHNOLOGY COSTS
TREATED AS PROGRAM COSTS.—Section 6307(d)(2)(B) is amended
by striking ‘‘telecommunications’’ and inserting ‘‘communica-
tions, software, technology’’.
(3) CONFORMING AMENDMENT.—Section 6307(d)(2) is
amended by striking ‘‘and’’ at the end of subparagraph (A),
by striking the period at the end of subparagraph (B) and
inserting ‘‘, and’’, and by inserting after subparagraph (B) the
following new subparagraph:
‘‘(C) reimbursement of the Internal Revenue Service
or other government agencies for the cost of administering
the qualified tax collection program under section 6306.’’.
(e) EFFECTIVE DATES.— Applicability.
(1) IN GENERAL.—Except as otherwise provided in this sub- 26 USC 6306
note.
section, the amendments made by this section shall apply to
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tax receivables identified by the Secretary (or the Secretary’s
delegate) after December 31, 2020.
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133 STAT. 990 PUBLIC LAW 116–25—JULY 1, 2019
(2) MAXIMUM LENGTH OF INSTALLMENT AGREEMENTS.—The
amendment made by subsection (c) shall apply to contracts
entered into after the date of the enactment of this Act.
(3) USE OF SPECIAL COMPLIANCE PERSONNEL PROGRAM
ACCOUNT.—The amendment made by subsection (d) shall apply
to amounts expended from the special compliance personnel
program account after the date of the enactment of this Act.
SEC. 1206. REFORM OF NOTICE OF CONTACT OF THIRD PARTIES.
26 USC 7602. (a) IN GENERAL.—Section 7602(c)(1) is amended to read as
follows:
Time period. ‘‘(1) GENERAL NOTICE.—An officer or employee of the
Internal Revenue Service may not contact any person other
than the taxpayer with respect to the determination or collec-
tion of the tax liability of such taxpayer unless such contact
occurs during a period (not greater than 1 year) which is
specified in a notice which—
‘‘(A) informs the taxpayer that contacts with persons
other than the taxpayer are intended to be made during
such period, and
Deadline. ‘‘(B) except as otherwise provided by the Secretary,
is provided to the taxpayer not later than 45 days before
the beginning of such period.
Nothing in the preceding sentence shall prevent the issuance
of notices to the same taxpayer with respect to the same tax
liability with periods specified therein that, in the aggregate,
exceed 1 year. A notice shall not be issued under this paragraph
unless there is an intent at the time such notice is issued
to contact persons other than the taxpayer during the period
specified in such notice. The preceding sentence shall not pre-
vent the issuance of a notice if the requirement of such sentence
is met on the basis of the assumption that the information
sought to be obtained by such contact will not be obtained
by other means before such contact.’’.
Applicability. (b) EFFECTIVE DATE.—The amendment made by this section
Time period. shall apply to notices provided, and contacts of persons made,
26 USC 7602
note.
after the date which is 45 days after the date of the enactment
of this Act.
SEC. 1207. MODIFICATION OF AUTHORITY TO ISSUE DESIGNATED SUM-
MONS.
(a) IN GENERAL.—Paragraph (1) of section 6503(j) is amended
by striking ‘‘coordinated examination program’’ and inserting
‘‘coordinated industry case program’’.
(b) REQUIREMENTS FOR SUMMONS.—Clause (i) of section
6503(j)(2)(A) is amended to read as follows:
‘‘(i) the issuance of such summons is preceded by
a review and written approval of such issuance by
the Commissioner of the relevant operating division
of the Internal Revenue Service and the Chief Counsel
which—
‘‘(I) states facts clearly establishing that the
Secretary has made reasonable requests for the
information that is the subject of the summons,
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and
‘‘(II) is attached to such summons,’’.
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PUBLIC LAW 116–25—JULY 1, 2019 133 STAT. 991
(c) ESTABLISHMENT THAT REASONABLE REQUESTS FOR INFORMA-
TION WERE MADE.—Subsection (j) of section 6503 is amended by 26 USC 6503.
adding at the end the following new paragraph:
‘‘(4) ESTABLISHMENT THAT REASONABLE REQUESTS FOR
INFORMATION WERE MADE.—In any court proceeding described
in paragraph (3), the Secretary shall establish that reasonable
requests were made for the information that is the subject
of the summons.’’.
(d) EFFECTIVE DATE.—The amendments made by this section Applicability.
shall apply to summonses issued after the date which is 45 days Time period.
after the date of the enactment of this Act. 26 USC 6503
note.
SEC. 1208. LIMITATION ON ACCESS OF NON-INTERNAL REVENUE
SERVICE EMPLOYEES TO RETURNS AND RETURN
INFORMATION.
(a) IN GENERAL.—Section 7602 is amended by adding at the
end the following new subsection:
‘‘(f) LIMITATION ON ACCESS OF PERSONS OTHER THAN INTERNAL
REVENUE SERVICE OFFICERS AND EMPLOYEES.—The Secretary shall
not, under the authority of section 6103(n), provide any books,
papers, records, or other data obtained pursuant to this section
to any person authorized under section 6103(n), except when such
person requires such information for the sole purpose of providing
expert evaluation and assistance to the Internal Revenue Service.
No person other than an officer or employee of the Internal Revenue
Service or the Office of Chief Counsel may, on behalf of the Sec-
retary, question a witness under oath whose testimony was obtained
pursuant to this section.’’.
(b) EFFECTIVE DATE.—The amendment made by this section— 26 USC 7602
(1) shall take effect on the date of the enactment of this note.
Act; and
(2) shall not fail to apply to a contract in effect under Applicability.
section 6103(n) of the Internal Revenue Code of 1986 merely
because such contract was in effect before the date of the
enactment of this Act.
Subtitle D—Organizational Modernization
SEC. 1301. OFFICE OF THE NATIONAL TAXPAYER ADVOCATE.
(a) TAXPAYER ADVOCATE DIRECTIVES.—
(1) IN GENERAL.—Section 7803(c) is amended by adding
at the end the following new paragraph:
‘‘(5) TAXPAYER ADVOCATE DIRECTIVES.—In the case of any Deadlines.
Taxpayer Advocate Directive issued by the National Taxpayer
Advocate pursuant to a delegation of authority from the
Commissioner of Internal Revenue—
‘‘(A) the Commissioner or a Deputy Commissioner shall
modify, rescind, or ensure compliance with such directive
not later than 90 days after the issuance of such directive,
and
‘‘(B) in the case of any directive which is modified
or rescinded by a Deputy Commissioner, the National Tax-
payer Advocate may (not later than 90 days after such
modification or rescission) appeal to the Commissioner,
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and the Commissioner shall (not later than 90 days after
such appeal is made) ensure compliance with such directive
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133 STAT. 992 PUBLIC LAW 116–25—JULY 1, 2019
as issued by the National Taxpayer Advocate or provide
the National Taxpayer Advocate with the reasons for any
modification or rescission made or upheld by the Commis-
sioner pursuant to such appeal.’’.
(2) REPORT TO CERTAIN COMMITTEES OF CONGRESS
26 USC 7803. REGARDING DIRECTIVES.—Section 7803(c)(2)(B)(ii) is amended
by redesignating subclauses (VIII) through (XI) as subclauses
(IX) through (XII), respectively, and by inserting after subclause
(VII) the following new subclause:
‘‘(VIII) identify any Taxpayer Advocate Direc-
tive which was not honored by the Internal Rev-
enue Service in a timely manner, as specified
under paragraph (5);’’.
(b) NATIONAL TAXPAYER ADVOCATE ANNUAL REPORTS TO CON-
GRESS.—
(1) INCLUSION OF MOST SERIOUS TAXPAYER PROBLEMS.—
Section 7803(c)(2)(B)(ii)(III) is amended by striking ‘‘at least
20 of the’’ and inserting ‘‘the 10’’.
(2) COORDINATION WITH TREASURY INSPECTOR GENERAL FOR
TAX ADMINISTRATION.—Section 7803(c)(2) is amended by adding
at the end the following new subparagraph:
‘‘(E) COORDINATION WITH TREASURY INSPECTOR GEN-
ERAL FOR TAX ADMINISTRATION.—Before beginning any
research or study, the National Taxpayer Advocate shall
coordinate with the Treasury Inspector General for Tax
Administration to ensure that the National Taxpayer Advo-
cate does not duplicate any action that the Treasury
Inspector General for Tax Administration has already
undertaken or has a plan to undertake.’’.
(3) STATISTICAL SUPPORT.—
(A) IN GENERAL.—Section 6108 is amended by adding
at the end the following new subsection:
‘‘(d) STATISTICAL SUPPORT FOR NATIONAL TAXPAYER ADVO-
CATE.—Upon request of the National Taxpayer Advocate, the Sec-
retary shall, to the extent practicable, provide the National Tax-
payer Advocate with statistical support in connection with the
preparation by the National Taxpayer Advocate of the annual report
described in section 7803(c)(2)(B)(ii). Such statistical support shall
include statistical studies, compilations, and the review of informa-
tion provided by the National Taxpayer Advocate for statistical
validity and sound statistical methodology.’’.
(B) DISCLOSURE OF REVIEW.—Section 7803(c)(2)(B)(ii),
as amended by subsection (a), is amended by striking ‘‘and’’
at the end of subclause (XI), by redesignating subclause
(XII) as subclause (XIII), and by inserting after subclause
(XI) the following new subclause:
‘‘(XII) with respect to any statistical informa-
tion included in such report, include a statement
of whether such statistical information was
reviewed or provided by the Secretary under sec-
tion 6108(d) and, if so, whether the Secretary
determined such information to be statistically
valid and based on sound statistical methodology;
and’’.
(C) CONFORMING AMENDMENT.—Section
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7803(c)(2)(B)(iii) is amended by adding at the end the fol-
lowing: ‘‘The preceding sentence shall not apply with
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PUBLIC LAW 116–25—JULY 1, 2019 133 STAT. 993
respect to statistical information provided to the Secretary
for review, or received from the Secretary, under section
6108(d).’’.
(c) SALARY OF NATIONAL TAXPAYER ADVOCATE.—Section
7803(c)(1)(B)(i) is amended by striking ‘‘, or, if the Secretary of 26 USC 7803.
the Treasury so determines, at a rate fixed under section 9503
of such title’’.
(d) EFFECTIVE DATE.— 26 USC 6108
(1) IN GENERAL.—Except as otherwise provided in this sub- note.
section, the amendments made by this section shall take effect
on the date of the enactment of this Act.
(2) SALARY OF NATIONAL TAXPAYER ADVOCATE.—The amend- Applicability.
ment made by subsection (c) shall apply to compensation paid
to individuals appointed as the National Taxpayer Advocate
after March 31, 2019.
SEC. 1302. MODERNIZATION OF INTERNAL REVENUE SERVICE 26 USC 7801
ORGANIZATIONAL STRUCTURE. note.
(a) IN GENERAL.—Not later than September 30, 2020, the Sec- Deadline.
retary of the Treasury (or the Secretary’s delegate) shall submit Plan.
to Congress a comprehensive written plan to redesign the organiza-
tion of the Internal Revenue Service. Such plan shall—
(1) ensure the successful implementation of the priorities
specified by Congress in this Act;
(2) prioritize taxpayer services to ensure that all taxpayers
easily and readily receive the assistance that they need;
(3) streamline the structure of the agency including mini-
mizing the duplication of services and responsibilities within
the agency;
(4) best position the Internal Revenue Service to combat
cybersecurity and other threats to the Internal Revenue Service;
and
(5) address whether the Criminal Investigation Division
of the Internal Revenue Service should report directly to the
Commissioner of Internal Revenue.
(b) REPEAL OF RESTRICTION ON ORGANIZATIONAL STRUCTURE
OF INTERNAL REVENUE SERVICE.—Paragraph (3) of section 1001(a) Termination
of the Internal Revenue Service Restructuring and Reform Act date.
of 1998 shall cease to apply beginning 1 year after the date on
which the plan described in subsection (a) is submitted to Congress.
Subtitle E—Other Provisions
SEC. 1401. RETURN PREPARATION PROGRAMS FOR APPLICABLE TAX-
PAYERS.
(a) IN GENERAL.—Chapter 77 is amended by inserting after
section 7526 the following new section:
‘‘SEC. 7526A. RETURN PREPARATION PROGRAMS FOR APPLICABLE 26 USC 7526A.
TAXPAYERS.
‘‘(a) ESTABLISHMENT OF VOLUNTEER INCOME TAX ASSISTANCE
MATCHING GRANT PROGRAM.—The Secretary shall establish a
Community Volunteer Income Tax Assistance Matching Grant Pro-
gram under which the Secretary may, subject to the availability
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of appropriated funds, make grants to provide matching funds for
the development, expansion, or continuation of qualified return
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133 STAT. 994 PUBLIC LAW 116–25—JULY 1, 2019
preparation programs assisting applicable taxpayers and members
of underserved populations.
‘‘(b) USE OF FUNDS.—
‘‘(1) IN GENERAL.—Qualified return preparation programs
may use grants received under this section for—
‘‘(A) ordinary and necessary costs associated with pro-
gram operation in accordance with cost principles under
the applicable Office of Management and Budget circular,
including—
‘‘(i) wages or salaries of persons coordinating the
activities of the program,
‘‘(ii) developing training materials, conducting
training, and performing quality reviews of the returns
prepared under the program,
‘‘(iii) equipment purchases, and
‘‘(iv) vehicle-related expenses associated with
remote or rural tax preparation services,
‘‘(B) outreach and educational activities described in
subsection (c)(2)(B), and
‘‘(C) services related to financial education and capa-
bility, asset development, and the establishment of savings
accounts in connection with tax return preparation.
‘‘(2) REQUIREMENT OF MATCHING FUNDS.—A qualified return
preparation program must provide matching funds on a dollar-
for-dollar basis for all grants provided under this section.
Matching funds may include—
‘‘(A) the salary (including fringe benefits) of individuals
performing services for the program,
‘‘(B) the cost of equipment used in the program, and
‘‘(C) other ordinary and necessary costs associated with
the program.
Indirect expenses, including general overhead of any entity
administering the program, shall not be counted as matching
funds.
‘‘(c) APPLICATION.—
‘‘(1) IN GENERAL.—Each applicant for a grant under this
section shall submit an application to the Secretary at such
time, in such manner, and containing such information as
the Secretary may reasonably require.
‘‘(2) PRIORITY.—In awarding grants under this section, the
Secretary shall give priority to applications which dem-
onstrate—
‘‘(A) assistance to applicable taxpayers, with emphasis
on outreach to, and services for, such taxpayers,
‘‘(B) taxpayer outreach and educational activities
relating to eligibility and availability of income supports
available through this title, including the earned income
tax credit, and
‘‘(C) specific outreach and focus on one or more under-
served populations.
‘‘(3) AMOUNTS TAKEN INTO ACCOUNT.—In determining
matching grants under this section, the Secretary shall only
take into account amounts provided by the qualified return
preparation program for expenses described in subsection (b).
‘‘(d) PROGRAM ADHERENCE.—
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Procedures. ‘‘(1) IN GENERAL.—The Secretary shall establish procedures
Time period. for, and shall conduct not less frequently than once every
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PUBLIC LAW 116–25—JULY 1, 2019 133 STAT. 995
5 calendar years during which a qualified return preparation
program is operating under a grant under this section, periodic
site visits—
‘‘(A) to ensure the program is carrying out the purposes
of this section, and
‘‘(B) to determine whether the program meets such Determination.
program adherence standards as the Secretary shall by
regulation or other guidance prescribe.
‘‘(2) ADDITIONAL REQUIREMENTS FOR GRANT RECIPIENTS NOT
MEETING PROGRAM ADHERENCE STANDARDS.—In the case of any
qualified return preparation program which—
‘‘(A) is awarded a grant under this section, and
‘‘(B) is subsequently determined—
‘‘(i) not to meet the program adherence standards
described in paragraph (1)(B), or
‘‘(ii) not to be otherwise carrying out the purposes
of this section,
such program shall not be eligible for any additional grants
under this section unless such program provides sufficient docu-
mentation of corrective measures established to address any
such deficiencies determined.
‘‘(e) DEFINITIONS.—For purposes of this section—
‘‘(1) QUALIFIED RETURN PREPARATION PROGRAM.—The term
‘qualified return preparation program’ means any program—
‘‘(A) which provides assistance to individuals, not less
than 90 percent of whom are applicable taxpayers, in pre-
paring and filing Federal income tax returns,
‘‘(B) which is administered by a qualified entity,
‘‘(C) in which all volunteers who assist in the prepara-
tion of Federal income tax returns meet the training
requirements prescribed by the Secretary, and
‘‘(D) which uses a quality review process which reviews
100 percent of all returns.
‘‘(2) QUALIFIED ENTITY.—
‘‘(A) IN GENERAL.—The term ‘qualified entity’ means
any entity which—
‘‘(i) is an eligible organization,
‘‘(ii) is in compliance with Federal tax filing and
payment requirements,
‘‘(iii) is not debarred or suspended from Federal
contracts, grants, or cooperative agreements, and
‘‘(iv) agrees to provide documentation to substan-
tiate any matching funds provided pursuant to the
grant program under this section.
‘‘(B) ELIGIBLE ORGANIZATION.—The term ‘eligible
organization’ means—
‘‘(i) an institution of higher education which is
described in section 102 (other than subsection (a)(1)(C)
thereof) of the Higher Education Act of 1965 (20 U.S.C.
1002), as in effect on the date of the enactment of
this section, and which has not been disqualified from
participating in a program under title IV of such Act,
‘‘(ii) an organization described in section 501(c)
and exempt from tax under section 501(a),
‘‘(iii) a local government agency, including—
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‘‘(I) a county or municipal government agency,
and
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133 STAT. 996 PUBLIC LAW 116–25—JULY 1, 2019
‘‘(II) an Indian tribe, as defined in section
4(13) of the Native American Housing Assistance
and Self-Determination Act of 1996 (25 U.S.C.
4103(13)), including any tribally designated
housing entity (as defined in section 4(22) of such
Act (25 U.S.C. 4103(22))), tribal subsidiary, sub-
division, or other wholly owned tribal entity,
‘‘(iv) a local, State, regional, or national coalition
(with one lead organization which meets the eligibility
requirements of clause (i), (ii), or (iii) acting as the
applicant organization), or
‘‘(v) in the case of applicable taxpayers and mem-
bers of underserved populations with respect to which
no organizations described in the preceding clauses
are available—
‘‘(I) a State government agency, or
‘‘(II) an office providing Cooperative Extension
services (as established at the land-grant colleges
and universities under the Smith-Lever Act of May
8, 1914).
‘‘(3) APPLICABLE TAXPAYERS.—The term ‘applicable tax-
payer’ means a taxpayer whose income for the taxable year
does not exceed an amount equal to the completed phaseout
amount under section 32(b) for a married couple filing a joint
return with three or more qualifying children, as determined
in a revenue procedure or other published guidance.
‘‘(4) UNDERSERVED POPULATION.—The term ‘underserved
population’ includes populations of persons with disabilities,
persons with limited English proficiency, Native Americans,
individuals living in rural areas, members of the Armed Forces
and their spouses, and the elderly.
‘‘(f) SPECIAL RULES AND LIMITATIONS.—
‘‘(1) DURATION OF GRANTS.—Upon application of a qualified
return preparation program, the Secretary is authorized to
award a multi-year grant not to exceed 3 years.
‘‘(2) AGGREGATE LIMITATION.—Unless otherwise provided
by specific appropriation, the Secretary shall not allocate more
than $30 million per fiscal year (exclusive of costs of admin-
istering the program) to grants under this section.
‘‘(g) PROMOTION OF PROGRAMS.—
‘‘(1) IN GENERAL.—The Secretary shall promote tax prepara-
tion through qualified return preparation programs through
the use of mass communications and other means.
‘‘(2) PROVISION OF INFORMATION REGARDING QUALIFIED
RETURN PREPARATION PROGRAMS.—The Secretary may provide
taxpayers information regarding qualified return preparation
programs receiving grants under this section.
‘‘(3) REFERRALS TO LOW-INCOME TAXPAYER CLINICS.—Quali-
fied return preparation programs receiving a grant under this
section are encouraged, in appropriate cases, to—
‘‘(A) advise taxpayers of the availability of, and eligi-
bility requirements for receiving, advice and assistance
from qualified low-income taxpayer clinics receiving
funding under section 7526, and
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‘‘(B) provide information regarding the location of, and
contact information for, such clinics.’’.
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PUBLIC LAW 116–25—JULY 1, 2019 133 STAT. 997
(b) CLERICAL AMENDMENT.—The table of sections for chapter
77 is amended by inserting after the item relating to section 7526 26 USC 7501
the following new item: prec.
‘‘Sec. 7526A. Return preparation programs for applicable taxpayers.’’.
SEC. 1402. PROVISION OF INFORMATION REGARDING LOW-INCOME
TAXPAYER CLINICS.
(a) IN GENERAL.—Section 7526(c) is amended by adding at
the end the following new paragraph:
‘‘(6) PROVISION OF INFORMATION REGARDING QUALIFIED LOW-
INCOME TAXPAYER CLINICS.—Notwithstanding any other provi-
sion of law, officers and employees of the Department of the
Treasury may—
‘‘(A) advise taxpayers of the availability of, and eligi-
bility requirements for receiving, advice and assistance
from one or more specific qualified low-income taxpayer
clinics receiving funding under this section, and
‘‘(B) provide information regarding the location of, and
contact information for, such clinics.’’.
(b) EFFECTIVE DATE.—The amendment made by this section 26 USC 7526
shall take effect on the date of the enactment of this Act. note.
SEC. 1403. NOTICE FROM IRS REGARDING CLOSURE OF TAXPAYER 26 USC 7801
ASSISTANCE CENTERS. note.
Not later than 90 days before the date that a proposed closure Deadline.
of a Taxpayer Assistance Center would take effect, the Secretary
of the Treasury (or the Secretary’s delegate) shall—
(1) make publicly available (including by non-electronic Public
means) a notice which— information.
(A) identifies the Taxpayer Assistance Center proposed
for closure and the date of such proposed closure; and
(B) identifies the relevant alternative sources of tax-
payer assistance which may be utilized by taxpayers
affected by such proposed closure; and
(2) submit to Congress a written report that includes— Reports.
(A) the information included in the notice described
in paragraph (1);
(B) the reasons for such proposed closure; and
(C) such other information as the Secretary may deter-
mine appropriate.
SEC. 1404. RULES FOR SEIZURE AND SALE OF PERISHABLE GOODS
RESTRICTED TO ONLY PERISHABLE GOODS.
(a) IN GENERAL.—Section 6336 is amended by striking ‘‘or
become greatly reduced in price or value by keeping, or that such
property cannot be kept without great expense’’.
(b) EFFECTIVE DATE.—The amendment made by this section 26 USC 6336
shall apply to property seized after the date of the enactment note.
of this Act.
SEC. 1405. WHISTLEBLOWER REFORMS.
(a) MODIFICATIONS TO DISCLOSURE RULES FOR WHISTLE-
BLOWERS.—
(1) IN GENERAL.—Section 6103(k) is amended by adding
at the end the following new paragraph:
‘‘(13) DISCLOSURE TO WHISTLEBLOWERS.—
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‘‘(A) IN GENERAL.—The Secretary may disclose, to any
individual providing information relating to any purpose
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133 STAT. 998 PUBLIC LAW 116–25—JULY 1, 2019
described in paragraph (1) or (2) of section 7623(a), return
information related to the investigation of any taxpayer
with respect to whom the individual has provided such
information, but only to the extent that such disclosure
is necessary in obtaining information, which is not other-
wise reasonably available, with respect to the correct deter-
mination of tax liability for tax, or the amount to be col-
lected with respect to the enforcement of any other provi-
sion of this title.
Deadlines. ‘‘(B) UPDATES ON WHISTLEBLOWER INVESTIGATIONS.—
The Secretary shall disclose to an individual providing
information relating to any purpose described in paragraph
(1) or (2) of section 7623(a) the following:
‘‘(i) Not later than 60 days after a case for which
the individual has provided information has been
referred for an audit or examination, a notice with
respect to such referral.
‘‘(ii) Not later than 60 days after a taxpayer with
respect to whom the individual has provided informa-
tion has made a payment of tax with respect to tax
liability to which such information relates, a notice
with respect to such payment.
‘‘(iii) Subject to such requirements and conditions
as are prescribed by the Secretary, upon a written
request by such individual—
‘‘(I) information on the status and stage of
any investigation or action related to such informa-
tion, and
‘‘(II) in the case of a determination of the
amount of any award under section 7623(b), the
reasons for such determination.
Clause (iii) shall not apply to any information if the Sec-
retary determines that disclosure of such information would
seriously impair Federal tax administration. Information
described in clauses (i), (ii), and (iii) may be disclosed
to a designee of the individual providing such information
in accordance with guidance provided by the Secretary.’’.
(2) CONFORMING AMENDMENTS.—
(A) CONFIDENTIALITY OF INFORMATION.—Section
26 USC 6103. 6103(a)(3) is amended by striking ‘‘subsection (k)(10)’’ and
inserting ‘‘paragraph (10) or (13) of subsection (k)’’.
(B) PENALTY FOR UNAUTHORIZED DISCLOSURE.—Section
7213(a)(2) is amended by striking ‘‘(k)(10)’’ and inserting
‘‘(k)(10) or (13)’’.
(C) COORDINATION WITH AUTHORITY TO DISCLOSE FOR
INVESTIGATIVE PURPOSES.—Section 6103(k)(6) is amended
by adding at the end the following new sentence: ‘‘This
paragraph shall not apply to any disclosure to an individual
providing information relating to any purpose described
in paragraph (1) or (2) of section 7623(a) which is made
under paragraph (13)(A).’’.
(b) PROTECTION AGAINST RETALIATION.—Section 7623 is
amended by adding at the end the following new subsection:
‘‘(d) CIVIL ACTION TO PROTECT AGAINST RETALIATION CASES.—
‘‘(1) ANTI-RETALIATION WHISTLEBLOWER PROTECTION FOR
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EMPLOYEES.—No employer, or any officer, employee, contractor,
subcontractor, or agent of such employer, may discharge,
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PUBLIC LAW 116–25—JULY 1, 2019 133 STAT. 999
demote, suspend, threaten, harass, or in any other manner
discriminate against an employee in the terms and conditions
of employment (including through an act in the ordinary course
of such employee’s duties) in reprisal for any lawful act done
by the employee—
‘‘(A) to provide information, cause information to be
provided, or otherwise assist in an investigation regarding
underpayment of tax or any conduct which the employee
reasonably believes constitutes a violation of the internal
revenue laws or any provision of Federal law relating to
tax fraud, when the information or assistance is provided
to the Internal Revenue Service, the Secretary of the
Treasury, the Treasury Inspector General for Tax Adminis-
tration, the Comptroller General of the United States, the
Department of Justice, the United States Congress, a per-
son with supervisory authority over the employee, or any
other person working for the employer who has the
authority to investigate, discover, or terminate misconduct,
or
‘‘(B) to testify, participate in, or otherwise assist in
any administrative or judicial action taken by the Internal
Revenue Service relating to an alleged underpayment of
tax or any violation of the internal revenue laws or any
provision of Federal law relating to tax fraud.
‘‘(2) ENFORCEMENT ACTION.—
‘‘(A) IN GENERAL.—A person who alleges discharge or
other reprisal by any person in violation of paragraph
(1) may seek relief under paragraph (3) by—
‘‘(i) filing a complaint with the Secretary of Labor,
or
‘‘(ii) if the Secretary of Labor has not issued a Time period.
final decision within 180 days of the filing of the com-
plaint and there is no showing that such delay is
due to the bad faith of the claimant, bringing an action
at law or equity for de novo review in the appropriate
district court of the United States, which shall have
jurisdiction over such an action without regard to the
amount in controversy.
‘‘(B) PROCEDURE.—
‘‘(i) IN GENERAL.—An action under subparagraph
(A)(i) shall be governed under the rules and procedures
set forth in section 42121(b) of title 49, United States
Code.
‘‘(ii) EXCEPTION.—Notification made under section
42121(b)(1) of title 49, United States Code, shall be
made to the person named in the complaint and to
the employer.
‘‘(iii) BURDENS OF PROOF.—An action brought
under subparagraph (A)(ii) shall be governed by the
legal burdens of proof set forth in section 42121(b)
of title 49, United States Code, except that in applying
such section—
‘‘(I) ‘behavior described in paragraph (1)’ shall
be substituted for ‘behavior described in para-
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graphs (1) through (4) of subsection (a)’ each place
it appears in paragraph (2)(B) thereof, and
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133 STAT. 1000 PUBLIC LAW 116–25—JULY 1, 2019
‘‘(II) ‘a violation of paragraph (1)’ shall be sub-
stituted for ‘a violation of subsection (a)’ each place
it appears.
Deadline. ‘‘(iv) STATUTE OF LIMITATIONS.—A complaint under
subparagraph (A)(i) shall be filed not later than 180
days after the date on which the violation occurs.
‘‘(v) JURY TRIAL.—A party to an action brought
under subparagraph (A)(ii) shall be entitled to trial
by jury.
‘‘(3) REMEDIES.—
‘‘(A) IN GENERAL.—An employee prevailing in any
action under paragraph (2)(A) shall be entitled to all relief
necessary to make the employee whole.
‘‘(B) COMPENSATORY DAMAGES.—Relief for any action
under subparagraph (A) shall include—
‘‘(i) reinstatement with the same seniority status
that the employee would have had, but for the reprisal,
‘‘(ii) the sum of 200 percent of the amount of back
pay and 100 percent of all lost benefits, with interest,
and
‘‘(iii) compensation for any special damages sus-
tained as a result of the reprisal, including litigation
costs, expert witness fees, and reasonable attorney fees.
‘‘(4) RIGHTS RETAINED BY EMPLOYEE.—Nothing in this sec-
tion shall be deemed to diminish the rights, privileges, or
remedies of any employee under any Federal or State law,
or under any collective bargaining agreement.
‘‘(5) NONENFORCEABILITY OF CERTAIN PROVISIONS WAIVING
RIGHTS AND REMEDIES OR REQUIRING ARBITRATION OF DIS-
PUTES.—
‘‘(A) WAIVER OF RIGHTS AND REMEDIES.—The rights
and remedies provided for in this subsection may not be
waived by any agreement, policy form, or condition of
employment, including by a predispute arbitration agree-
ment.
‘‘(B) PREDISPUTE ARBITRATION AGREEMENTS.—No
predispute arbitration agreement shall be valid or enforce-
able, if the agreement requires arbitration of a dispute
arising under this subsection.’’.
(c) EFFECTIVE DATE.—
26 USC 6103 (1) IN GENERAL.—The amendments made by subsection
note. (a) shall apply to disclosures made after the date of the enact-
ment of this Act.
26 USC 7623 (2) CIVIL PROTECTION.—The amendment made by sub-
note. section (b) shall take effect on the date of the enactment of
this Act.
26 USC 7801 SEC. 1406. CUSTOMER SERVICE INFORMATION.
note.
The Secretary of the Treasury (or the Secretary’s delegate)
shall provide helpful information to taxpayers placed on hold during
a telephone call to any Internal Revenue Service help line, including
the following:
(1) Information about common tax scams.
(2) Information on where and how to report tax scams.
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(3) Additional advice on how taxpayers can protect them-
selves from identity theft and tax scams.
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PUBLIC LAW 116–25—JULY 1, 2019 133 STAT. 1001
SEC. 1407. MISDIRECTED TAX REFUND DEPOSITS.
Section 6402 is amended by adding at the end the following 26 USC 6402.
new subsection:
‘‘(n) MISDIRECTED DIRECT DEPOSIT REFUND.—Not later than Deadline.
the date which is 6 months after the date of the enactment of Regulations.
the Taxpayer First Act, the Secretary shall prescribe regulations Procedures.
to establish procedures to allow for—
‘‘(1) taxpayers to report instances in which a refund made
by the Secretary by electronic funds transfer was not trans-
ferred to the account of the taxpayer;
‘‘(2) coordination with financial institutions for the purpose Coordination.
of—
‘‘(A) identifying the accounts to which transfers
described in paragraph (1) were made; and
‘‘(B) recovery of the amounts so transferred; and
‘‘(3) the refund to be delivered to the correct account of
the taxpayer.’’.
TITLE II—21ST CENTURY IRS
Subtitle A—Cybersecurity and Identity
Protection
SEC. 2001. PUBLIC-PRIVATE PARTNERSHIP TO ADDRESS IDENTITY 26 USC 7529
THEFT REFUND FRAUD. note.
The Secretary of the Treasury (or the Secretary’s delegate)
shall work collaboratively with the public and private sectors to
protect taxpayers from identity theft refund fraud.
SEC. 2002. RECOMMENDATIONS OF ELECTRONIC TAX ADMINISTRA-
TION ADVISORY COMMITTEE REGARDING IDENTITY
THEFT REFUND FRAUD.
The Secretary of the Treasury shall ensure that the advisory
group convened by the Secretary pursuant to section 2001(b)(2)
of the Internal Revenue Service Restructuring and Reform Act
of 1998 (commonly known as the Electronic Tax Administration
Advisory Committee) studies (including by providing organized
public forums) and makes recommendations to the Secretary
regarding methods to prevent identity theft and refund fraud.
SEC. 2003. INFORMATION SHARING AND ANALYSIS CENTER.
(a) IN GENERAL.—The Secretary of the Treasury (or the Sec- 26 USC 7529
retary’s delegate) may participate in an information sharing and note.
analysis center to centralize, standardize, and enhance data com-
pilation and analysis to facilitate sharing actionable data and
information with respect to identity theft tax refund fraud.
(b) DEVELOPMENT OF PERFORMANCE METRICS.—The Secretary 26 USC 7529
of the Treasury (or the Secretary’s delegate) shall develop metrics note.
for measuring the success of such center in detecting and preventing
identity theft tax refund fraud.
(c) DISCLOSURE.—
(1) IN GENERAL.—Section 6103(k), as amended by this Act,
is amended by adding at the end the following new paragraph:
‘‘(14) DISCLOSURE OF RETURN INFORMATION FOR PURPOSES
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OF CYBERSECURITY AND THE PREVENTION OF IDENTITY THEFT
TAX REFUND FRAUD.—
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133 STAT. 1002 PUBLIC LAW 116–25—JULY 1, 2019
‘‘(A) IN GENERAL.—Under such procedures and subject
to such conditions as the Secretary may prescribe, the
Secretary may disclose specified return information to
specified ISAC participants to the extent that the Secretary
determines such disclosure is in furtherance of effective
Federal tax administration relating to the detection or
prevention of identity theft tax refund fraud, validation
of taxpayer identity, authentication of taxpayer returns,
or detection or prevention of cybersecurity threats.
Definition. ‘‘(B) SPECIFIED ISAC PARTICIPANTS.—For purposes of
this paragraph—
‘‘(i) IN GENERAL.—The term ‘specified ISAC partici-
pant’ means—
‘‘(I) any person designated by the Secretary
as having primary responsibility for a function
performed with respect to the information sharing
and analysis center described in section 2003(a)
of the Taxpayer First Act, and
‘‘(II) any person subject to the requirements
of section 7216 and which is a participant in such
information sharing and analysis center.
‘‘(ii) INFORMATION SHARING AGREEMENT.—Such
term shall not include any person unless such person
has entered into a written agreement with the Sec-
retary setting forth the terms and conditions for the
disclosure of information to such person under this
paragraph, including requirements regarding the
protection and safeguarding of such information by
such person.
Definition. ‘‘(C) SPECIFIED RETURN INFORMATION.—For purposes
of this paragraph, the term ‘specified return information’
means—
‘‘(i) in the case of a return which is in connection
with a case of potential identity theft refund fraud—
‘‘(I) in the case of such return filed electroni-
cally, the internet protocol address, device identi-
fication, email domain name, speed of completion,
method of authentication, refund method, and such
other return information related to the electronic
filing characteristics of such return as the Sec-
retary may identify for purposes of this subclause,
and
‘‘(II) in the case of such return prepared by
a tax return preparer, identifying information with
respect to such tax return preparer, including the
preparer taxpayer identification number and elec-
tronic filer identification number of such preparer,
‘‘(ii) in the case of a return which is in connection
with a case of a identity theft refund fraud which
has been confirmed by the Secretary (pursuant to such
procedures as the Secretary may provide), the informa-
tion referred to in subclauses (I) and (II) of clause
(i), the name and taxpayer identification number of
the taxpayer as it appears on the return, and any
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bank account and routing information provided for
making a refund in connection with such return, and
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PUBLIC LAW 116–25—JULY 1, 2019 133 STAT. 1003
‘‘(iii) in the case of any cybersecurity threat to
the Internal Revenue Service, information similar to
the information described in subclauses (I) and (II)
of clause (i) with respect to such threat.
‘‘(D) RESTRICTION ON USE OF DISCLOSED INFORMA-
TION.—
‘‘(i) DESIGNATED THIRD PARTIES.—Any return
information received by a person described in subpara-
graph (B)(i)(I) shall be used only for the purposes of
and to the extent necessary in—
‘‘(I) performing the function such person is
designated to perform under such subparagraph,
‘‘(II) facilitating disclosures authorized under
subparagraph (A) to persons described in subpara-
graph (B)(i)(II), and
‘‘(III) facilitating disclosures authorized under
subsection (d) to participants in such information
sharing and analysis center.
‘‘(ii) RETURN PREPARERS.—Any return information
received by a person described in subparagraph
(B)(i)(II) shall be treated for purposes of section 7216
as information furnished to such person for, or in
connection with, the preparation of a return of the
tax imposed under chapter 1.
‘‘(E) DATA PROTECTION AND SAFEGUARDS.—Return
information disclosed under this paragraph shall be subject
to such protections and safeguards as the Secretary may
require in regulations or other guidance or in the written
agreement referred to in subparagraph (B)(ii). Such written
agreement shall include a requirement that any unauthor-
ized access to information disclosed under this paragraph,
and any breach of any system in which such information
is held, be reported to the Treasury Inspector General
for Tax Administration.’’.
(2) APPLICATION OF CIVIL AND CRIMINAL PENALTIES.—
(A) Section 6103(a)(3), as amended by this Act, is 26 USC 6103.
amended by striking ‘‘or (13)’’ and inserting ‘‘, (13), or
(14)’’.
(B) Section 7213(a)(2), as amended by this Act, is
amended by striking ‘‘or (13)’’ and inserting ‘‘, (13), or
(14)’’.
SEC. 2004. COMPLIANCE BY CONTRACTORS WITH CONFIDENTIALITY
SAFEGUARDS.
(a) IN GENERAL.—Section 6103(p) is amended by adding at
the end the following new paragraph:
‘‘(9) 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
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(within the meaning of paragraph (4)) to protect the con-
fidentiality of such returns or return information,
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133 STAT. 1004 PUBLIC LAW 116–25—JULY 1, 2019
Review. ‘‘(B) agrees to conduct an on-site review every 3 years
Time period. (or a mid-point review in the case of contracts or agree-
ments of less than 3 years in duration) of each contractor
or other agent to determine compliance with such require-
ments,
‘‘(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
Certification. ‘‘(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 or 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 disclo-
sures pursuant to subsection (n) for purposes of Federal tax
administration.’’.
26 USC 6103. (b) CONFORMING AMENDMENT.—Section 6103(p)(8)(B) is
amended by inserting ‘‘or paragraph (9)’’ after ‘‘subparagraph (A)’’.
26 USC 6103 (c) EFFECTIVE DATE.—The amendments made by this section
note. shall apply to disclosures made after December 31, 2022.
26 USC 6109 SEC. 2005. IDENTITY PROTECTION PERSONAL IDENTIFICATION NUM-
note. BERS.
(a) IN GENERAL.—Subject to subsection (b), the Secretary of
the Treasury or the Secretary’s delegate (hereafter referred to in
this section as the ‘‘Secretary’’) shall establish a program to issue,
upon the request of any individual, a number which may be used
in connection with such individual’s social security number (or
other identifying information with respect to such individual as
determined by the Secretary) to assist the Secretary in verifying
such individual’s identity.
(b) REQUIREMENTS.—
(1) ANNUAL EXPANSION.—For each calendar year beginning
after the date of the enactment of this Act, the Secretary
shall provide numbers through the program described in sub-
section (a) to individuals residing in such States as the Sec-
retary deems appropriate, provided that the total number of
States served by such program during such year is greater
than the total number of States served by such program during
the preceding year.
Deadline. (2) NATIONWIDE AVAILABILITY.—Not later than 5 years after
the date of the enactment of this Act, the Secretary shall
ensure that the program described in subsection (a) is made
available to any individual residing in the United States.
26 USC 7529 SEC. 2006. SINGLE POINT OF CONTACT FOR TAX-RELATED IDENTITY
note. THEFT VICTIMS.
Procedures. (a) IN GENERAL.—The Secretary of the Treasury (or the Sec-
retary’s delegate) shall establish and implement procedures to
ensure that any taxpayer whose return has been delayed or other-
wise adversely affected due to tax-related identity theft has a single
point of contact at the Internal Revenue Service throughout the
Coordination. processing of the taxpayer’s case. The single point of contact shall
track the taxpayer’s case to completion and coordinate with other
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Internal Revenue Service employees to resolve case issues as quickly
as possible.
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PUBLIC LAW 116–25—JULY 1, 2019 133 STAT. 1005
(b) SINGLE POINT OF CONTACT.—
(1) IN GENERAL.—For purposes of subsection (a), the single
point of contact shall consist of a team or subset of specially
trained employees who—
(A) have the ability to work across functions to resolve
the issues involved in the taxpayer’s case; and
(B) shall be accountable for handling the case until
its resolution.
(2) TEAM OR SUBSET.—The employees included within the Procedures.
team or subset described in paragraph (1) may change as
required to meet the needs of the Internal Revenue Service,
provided that procedures have been established to—
(A) ensure continuity of records and case history; and
(B) notify the taxpayer when appropriate. Notification.
SEC. 2007. NOTIFICATION OF SUSPECTED IDENTITY THEFT.
(a) IN GENERAL.—Chapter 77 is amended by adding at the
end the following new section:
‘‘SEC. 7529. NOTIFICATION OF SUSPECTED IDENTITY THEFT. 26 USC 7529.
‘‘(a) IN GENERAL.—If the Secretary determines that there has Determination.
been or may have been an unauthorized use of the identity of
any individual, the Secretary shall, without jeopardizing an inves-
tigation relating to tax administration—
‘‘(1) as soon as practicable—
‘‘(A) notify the individual of such determination,
‘‘(B) provide instructions on how to file a report with
law enforcement regarding the unauthorized use,
‘‘(C) identify any steps to be taken by the individual
to permit law enforcement to access personal information
of the individual during the investigation,
‘‘(D) provide information regarding actions the indi-
vidual may take in order to protect the individual from
harm relating to the unauthorized use, and
‘‘(E) offer identity protection measures to the indi-
vidual, such as the use of an identity protection personal
identification number, and
‘‘(2) at the time the information described in paragraph
(1) is provided (or, if not available at such time, as soon as
practicable thereafter), issue additional notifications to such
individual (or such individual’s designee) regarding—
‘‘(A) whether an investigation has been initiated in
regards to such unauthorized use,
‘‘(B) whether the investigation substantiated an
unauthorized use of the identity of the individual, and
‘‘(C) whether—
‘‘(i) any action has been taken against a person
relating to such unauthorized use, or
‘‘(ii) any referral has been made for criminal
prosecution of such person and, to the extent such
information is available, whether such person has been
criminally charged by indictment or information.
‘‘(b) EMPLOYMENT-RELATED IDENTITY THEFT.—
‘‘(1) IN GENERAL.—For purposes of this section, the
unauthorized use of the identity of an individual includes the
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unauthorized use of the identity of the individual to obtain
employment.
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133 STAT. 1006 PUBLIC LAW 116–25—JULY 1, 2019
‘‘(2) DETERMINATION OF EMPLOYMENT-RELATED IDENTITY
Review. THEFT.—For purposes of this section, in making a determination
as to whether there has been or may have been an unauthorized
use of the identity of an individual to obtain employment,
the Secretary shall review any information—
‘‘(A) obtained from a statement described in section
6051 or an information return relating to compensation
for services rendered other than as an employee, or
‘‘(B) provided to the Internal Revenue Service by the
Social Security Administration regarding any statement
described in section 6051,
which indicates that the social security account number pro-
vided on such statement or information return does not cor-
respond with the name provided on such statement or informa-
tion return or the name on the tax return reporting the income
which is included on such statement or information return.’’.
(b) ADDITIONAL MEASURES.—
26 USC 7529 (1) EXAMINATION OF BOTH PAPER AND ELECTRONIC STATE-
note. MENTS AND RETURNS.—The Secretary of the Treasury (or the
Secretary’s delegate) shall examine the statements, information
returns, and tax returns described in section 7529(b)(2) of the
Internal Revenue Code of 1986 (as added by subsection (a))
for any evidence of employment-related identity theft, regard-
less of whether such statements or returns are submitted elec-
tronically or on paper.
(2) IMPROVEMENT OF EFFECTIVE RETURN PROCESSING PRO-
GRAM WITH SOCIAL SECURITY ADMINISTRATION.—Section 232 of
the Social Security Act (42 U.S.C. 432) is amended by inserting
after the third sentence the following: ‘‘For purposes of carrying
out the return processing program described in the preceding
sentence, the Commissioner of Social Security shall request,
not less than annually, such information described in section
7529(b)(2) of the Internal Revenue Code of 1986 as may be
necessary to ensure the accuracy of the records maintained
by the Commissioner of Social Security related to the amounts
of wages paid to, and the amounts of self-employment income
derived by, individuals.’’.
Procedures. (3) UNDERREPORTING OF INCOME.—The Secretary of the
26 USC 7529 Treasury (or the Secretary’s delegate) shall establish procedures
note. to ensure that income reported in connection with the unauthor-
ized use of a taxpayer’s identity is not taken into account
in determining any penalty for underreporting of income by
the victim of identity theft.
(c) CLERICAL AMENDMENT.—The table of sections for chapter
26 USC 7501 77 is amended by adding at the end the following new item:
prec.
‘‘Sec. 7529. Notification of suspected identity theft.’’.
Applicability. (d) EFFECTIVE DATE.—The amendments made by this section
Determinations. shall apply to determinations made after the date that is 6 months
Time period. after the date of the enactment of this Act.
26 USC 7529
note. SEC. 2008. GUIDELINES FOR STOLEN IDENTITY REFUND FRAUD CASES.
26 USC 7529
note. (a) IN GENERAL.—Not later than 1 year after the date of the
Deadline. enactment of this Act, the Secretary of the Treasury (or the Sec-
Consultation.
Public retary’s delegate), in consultation with the National Taxpayer Advo-
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information. cate, shall develop and implement publicly available guidelines
for management of cases involving stolen identity refund fraud
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PUBLIC LAW 116–25—JULY 1, 2019 133 STAT. 1007
in a manner that reduces the administrative burden on taxpayers
who are victims of such fraud.
(b) STANDARDS AND PROCEDURES TO BE CONSIDERED.—The
guidelines described in subsection (a) may include—
(1) standards for—
(A) the average length of time in which a case involving
stolen identity refund fraud should be resolved;
(B) the maximum length of time, on average, a tax-
payer who is a victim of stolen identity refund fraud and
is entitled to a tax refund which has been stolen should
have to wait to receive such refund; and
(C) the maximum number of offices and employees
within the Internal Revenue Service with whom a taxpayer
who is a victim of stolen identity refund fraud should
be required to interact in order to resolve a case;
(2) standards for opening, assigning, reassigning, or closing
a case involving stolen identity refund fraud; and
(3) procedures for implementing and accomplishing the
standards described in paragraphs (1) and (2), and measures
for evaluating such procedures and determining whether such
standards have been successfully implemented.
SEC. 2009. INCREASED PENALTY FOR IMPROPER DISCLOSURE OR USE
OF INFORMATION BY PREPARERS OF RETURNS.
(a) IN GENERAL.—Section 6713 is amended— 26 USC 6713.
(1) by redesignating subsections (b) and (c) as subsections
(c) and (d), respectively; and
(2) by inserting after subsection (a) the following new sub-
section:
‘‘(b) ENHANCED PENALTY FOR IMPROPER USE OR DISCLOSURE
RELATING TO IDENTITY THEFT.—
‘‘(1) IN GENERAL.—In the case of a disclosure or use
described in subsection (a) that is made in connection with
a crime relating to the misappropriation of another person’s
taxpayer identity (as defined in section 6103(b)(6)), whether
or not such crime involves any tax filing, subsection (a) shall
be applied—
‘‘(A) by substituting ‘$1,000’ for ‘$250’, and
‘‘(B) by substituting ‘$50,000’ for ‘$10,000’.
‘‘(2) SEPARATE APPLICATION OF TOTAL PENALTY LIMITA-
TION.—The limitation on the total amount of the penalty under
subsection (a) shall be applied separately with respect to disclo-
sures or uses to which this subsection applies and to which
it does not apply.’’.
(b) CRIMINAL PENALTY.—Section 7216(a) is amended by striking
‘‘$1,000’’ and inserting ‘‘$1,000 ($100,000 in the case of a disclosure
or use to which section 6713(b) applies)’’.
(c) EFFECTIVE DATE.—The amendments made by this section 26 USC 6713
shall apply to disclosures or uses on or after the date of the note.
enactment of this Act.
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133 STAT. 1008 PUBLIC LAW 116–25—JULY 1, 2019
Subtitle B—Development of Information
Technology
SEC. 2101. MANAGEMENT OF INTERNAL REVENUE SERVICE INFORMA-
TION TECHNOLOGY.
(a) DUTIES AND RESPONSIBILITIES OF INTERNAL REVENUE
SERVICE CHIEF INFORMATION OFFICER.—Section 7803, as amended
26 USC 7803. by section 1001, is amended by adding at the end the following
new subsection:
‘‘(f) INTERNAL REVENUE SERVICE CHIEF INFORMATION
OFFICER.—
Appointment. ‘‘(1) IN GENERAL.—There shall be in the Internal Revenue
Service an Internal Revenue Service Chief Information Officer
(hereafter referred to in this subsection as the ‘IRS CIO’) who
shall be appointed by the Commissioner of Internal Revenue.
‘‘(2) CENTRALIZED RESPONSIBILITY FOR INTERNAL REVENUE
SERVICE INFORMATION TECHNOLOGY.—The Commissioner of
Internal Revenue (and the Secretary) shall act through the
IRS CIO with respect to all development, implementation, and
maintenance of information technology for the Internal Revenue
Service. Any reference in this subsection to the IRS CIO which
directs the IRS CIO to take any action, or to assume any
responsibility, shall be treated as a reference to the Commis-
sioner of Internal Revenue acting through the IRS CIO.
‘‘(3) GENERAL DUTIES AND RESPONSIBILITIES.—The IRS CIO
shall—
‘‘(A) be responsible for the development, implementa-
tion, and maintenance of information technology for the
Internal Revenue Service,
‘‘(B) ensure that the information technology of the
Internal Revenue Service is secure and integrated,
‘‘(C) maintain operational control of all information
technology for the Internal Revenue Service,
‘‘(D) be the principal advocate for the information tech-
nology needs of the Internal Revenue Service, and
Consultation. ‘‘(E) consult with the Chief Procurement Officer of the
Internal Revenue Service to ensure that the information
technology acquired for the Internal Revenue Service is
consistent with—
‘‘(i) the goals and requirements specified in sub-
paragraphs (A) through (D), and
‘‘(ii) the strategic plan developed under paragraph
(4).
‘‘(4) STRATEGIC PLAN.—
‘‘(A) IN GENERAL.—The IRS CIO shall develop and
implement a multiyear strategic plan for the information
technology needs of the Internal Revenue Service. Such
plan shall—
‘‘(i) include performance measurements of such
technology and of the implementation of such plan,
‘‘(ii) include a plan for an integrated enterprise
architecture of the information technology of the
Internal Revenue Service,
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‘‘(iii) include and take into account the resources
needed to accomplish such plan,
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PUBLIC LAW 116–25—JULY 1, 2019 133 STAT. 1009
‘‘(iv) take into account planned major acquisitions
of information technology by the Internal Revenue
Service, and
‘‘(v) align with the needs and strategic plan of
the Internal Revenue Service.
‘‘(B) PLAN UPDATES.—The IRS CIO shall, not less fre- Time period.
quently than annually, review and update the strategic Review.
plan under subparagraph (A) (including the plan for an
integrated enterprise architecture described in subpara-
graph (A)(ii)) to take into account the development of new
information technology and the needs of the Internal Rev-
enue Service.
‘‘(5) SCOPE OF AUTHORITY.—
‘‘(A) INFORMATION TECHNOLOGY.—For purposes of this Definition.
subsection, the term ‘information technology’ has the
meaning given such term by section 11101 of title 40,
United States Code.
‘‘(B) INTERNAL REVENUE SERVICE.—Any reference in
this subsection to the Internal Revenue Service includes
a reference to all components of the Internal Revenue
Service, including—
‘‘(i) the Office of the Taxpayer Advocate,
‘‘(ii) the Criminal Investigation Division of the
Internal Revenue Service, and
‘‘(iii) except as otherwise provided by the Secretary
with respect to information technology related to mat-
ters described in subsection (b)(3)(B), the Office of the
Chief Counsel.’’.
(b) INDEPENDENT VERIFICATION AND VALIDATION OF THE CUS-
TOMER ACCOUNT DATA ENGINE 2 AND ENTERPRISE CASE MANAGE-
MENT SYSTEM.—
(1) IN GENERAL.—The Commissioner of Internal Revenue Contracts.
shall enter into a contract with an independent reviewer to
verify and validate the implementation plans (including the
performance milestones and cost estimates included in such
plans) developed for the Customer Account Data Engine 2
and the Enterprise Case Management System.
(2) DEADLINE FOR COMPLETION.—Such contract shall
require that such verification and validation be completed not
later than the date which is 1 year after the date of the
enactment of this Act.
(3) APPLICATION TO PHASES OF CADE 2.—
(A) IN GENERAL.—Paragraphs (1) and (2) shall not
apply to phase 1 of the Customer Account Data Engine
2 and shall apply separately to each other phase.
(B) DEADLINE FOR COMPLETING PLANS.—Not later than
1 year after the date of the enactment of this Act, the
Commissioner of Internal Revenue shall complete the
development of plans for all phases of the Customer
Account Data Engine 2.
(C) DEADLINE FOR COMPLETION OF VERIFICATION AND
VALIDATION OF PLANS.—In the case of any phase after
phase 2 of the Customer Account Data Engine 2, paragraph
(2) shall be applied by substituting ‘‘the date on which
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the plan for such phase was completed’’ for ‘‘the date of
the enactment of this Act’’.
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133 STAT. 1010 PUBLIC LAW 116–25—JULY 1, 2019
26 USC 7803 (c) COORDINATION OF IRS CIO AND CHIEF PROCUREMENT
note. OFFICER OF THE INTERNAL REVENUE SERVICE.—
(1) IN GENERAL.—The Chief Procurement Officer of the
Internal Revenue Service shall—
Notification. (A) identify all significant IRS information technology
acquisitions and provide written notification to the Internal
Revenue Service Chief Information Officer (hereafter
referred to in this subsection as the ‘‘IRS CIO’’) of each
such acquisition in advance of such acquisition, and
Consultation. (B) regularly consult with the IRS CIO regarding
acquisitions of information technology for the Internal Rev-
enue Service, including meeting with the IRS CIO
regarding such acquisitions upon request.
(2) SIGNIFICANT IRS INFORMATION TECHNOLOGY ACQUISI-
Definition. TIONS.—For purposes of this subsection, the term ‘‘significant
IRS information technology acquisitions’’ means—
(A) any acquisition of information technology for the
Internal Revenue Service in excess of $1 million; and
(B) such other acquisitions of information technology
for the Internal Revenue Service (or categories of such
acquisitions) as the IRS CIO, in consultation with the
Chief Procurement Officer of the Internal Revenue Service,
may identify.
(3) SCOPE.—Terms used in this subsection which are also
used in section 7803(f) of the Internal Revenue Code of 1986
(as added by subsection (a)) shall have the same meaning
as when used in such section.
26 USC 6011 SEC. 2102. INTERNET PLATFORM FOR FORM 1099 FILINGS.
note.
Deadline. (a) IN GENERAL.—Not later than January 1, 2023, the Secretary
of the Treasury or the Secretary’s delegate (hereafter referred to
in this section as the ‘‘Secretary’’) shall make available an internet
website or other electronic media, with a user interface and
functionality similar to the Business Services Online Suite of Serv-
ices provided by the Social Security Administration, that provides
access to resources and guidance provided by the Internal Revenue
Service and allows persons to—
(1) prepare and file Forms 1099;
(2) prepare Forms 1099 for distribution to recipients other
than the Internal Revenue Service; and
(3) maintain a record of completed, filed, and distributed
Forms 1099.
(b) ELECTRONIC SERVICES TREATED AS SUPPLEMENTAL; APPLICA-
TION OF SECURITY STANDARDS.—The Secretary shall ensure that
the services described in subsection (a)—
(1) are a supplement to, and not a replacement for, other
services provided by the Internal Revenue Service to taxpayers;
and
Compliance. (2) comply with applicable security standards and guide-
lines.
SEC. 2103. STREAMLINED CRITICAL PAY AUTHORITY FOR INFORMA-
TION TECHNOLOGY POSITIONS.
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(a) IN GENERAL.—Subchapter A of chapter 80 is amended by
adding at the end the following new section:
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PUBLIC LAW 116–25—JULY 1, 2019 133 STAT. 1011
‘‘SEC. 7812. STREAMLINED CRITICAL PAY AUTHORITY FOR INFORMA- Applicability.
TION TECHNOLOGY POSITIONS. 26 USC 7812.
‘‘In the case of any position which is critical to the functionality
of the information technology operations of the Internal Revenue
Service—
‘‘(1) section 9503 of title 5, United States Code, shall be
applied—
‘‘(A) by substituting ‘during the period beginning on
the date of the enactment of section 7812 of the Internal
Revenue Code of 1986, and ending on September 30, 2025’
for ‘Before September 30, 2013 in subsection (a)’,
‘‘(B) without regard to subparagraph (B) of subsection
(a)(1), and
‘‘(C) by substituting ‘the date of the enactment of the
Taxpayer First Act’ for ‘June 1, 1998’ in subsection (a)(6),
‘‘(2) section 9504 of such title 5 shall be applied by sub-
stituting ‘During the period beginning on the date of the enact-
ment of section 7812 of the Internal Revenue Code of 1986,
and ending on September 30, 2025’ for ‘Before September 30,
2013’ each place it appears in subsections (a) and (b), and
‘‘(3) section 9505 of such title shall be applied—
‘‘(A) by substituting ‘During the period beginning on
the date of the enactment of section 7812 of the Internal
Revenue Code of 1986, and ending on September 30, 2025’
for ‘Before September 30, 2013’ in subsection (a), and
‘‘(B) by substituting ‘the information technology oper-
ations’ for ‘significant functions’ in subsection (a).’’.
(b) CLERICAL AMENDMENT.—The table of sections for subchapter
A of chapter 80 is amended by adding at the end the following 26 USC 7801
new item: prec.
‘‘Sec. 7812. Streamlined critical pay authority for information technology posi-
tions.’’.
Subtitle C—Modernization of Consent-
Based Income Verification System
SEC. 2201. DISCLOSURE OF TAXPAYER INFORMATION FOR THIRD- 26 USC 6103
PARTY INCOME VERIFICATION. note.
(a) IN GENERAL.—Not later than 1 year after the close of Deadline.
the 2-year period described in subsection (d)(1), the Secretary of
the Treasury or the Secretary’s delegate (hereafter referred to in
this section as the ‘‘Secretary’’) shall implement a program to ensure
that any qualified disclosure—
(1) is fully automated and accomplished through the inter-
net; and
(2) is accomplished in as close to real-time as is practicable.
(b) QUALIFIED DISCLOSURE.—For purposes of this section, the Definition.
term ‘‘qualified disclosure’’ means a disclosure under section 6103(c)
of the Internal Revenue Code of 1986 of returns or return informa-
tion by the Secretary to a person seeking to verify the income
or creditworthiness of a taxpayer who is a borrower in the process
of a loan application.
(c) APPLICATION OF SECURITY STANDARDS.—The Secretary shall Compliance.
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ensure that the program described in subsection (a) complies with
applicable security standards and guidelines.
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133 STAT. 1012 PUBLIC LAW 116–25—JULY 1, 2019
(d) USER FEE.—
Time period. (1) IN GENERAL.—During the 2-year period beginning on
the first day of the sixth calendar month beginning after the
date of the enactment of this Act, the Secretary shall assess
and collect a fee for qualified disclosures (in addition to any
other fee assessed and collected for such disclosures) at such
rates as the Secretary determines are sufficient to cover the
costs related to implementing the program described in sub-
section (a), including the costs of any necessary infrastructure
or technology.
(2) DEPOSIT OF COLLECTIONS.—Amounts received from fees
assessed and collected under paragraph (1) shall be deposited
in, and credited to, an account solely for the purpose of carrying
out the activities described in subsection (a). Such amounts
shall be available to carry out such activities without need
of further appropriation and without fiscal year limitation.
SEC. 2202. LIMIT REDISCLOSURES AND USES OF CONSENT-BASED
DISCLOSURES OF TAX RETURN INFORMATION.
26 USC 6103. (a) IN GENERAL.—Section 6103(c) is amended by adding at
the end the following: ‘‘Persons designated by the taxpayer under
this subsection to receive return information shall not use the
information for any purpose other than the express purpose for
which consent was granted and shall not disclose return information
to any other person without the express permission of, or request
by, the taxpayer.’’.
(b) APPLICATION OF PENALTIES.—Section 6103(a)(3) is amended
by inserting ‘‘subsection (c),’’ after ‘‘return information under’’.
Applicability. (c) EFFECTIVE DATE.—The amendments made by this section
Time period. shall apply to disclosures made after the date which is 180 days
26 USC 6103 after the date of the enactment of this Act.
note.
Subtitle D—Expanded Use of Electronic
Systems
SEC. 2301. ELECTRONIC FILING OF RETURNS.
(a) IN GENERAL.—Section 6011(e)(2)(A) is amended by striking
‘‘250’’ and inserting ‘‘the applicable number of’’.
(b) APPLICABLE NUMBER.—Section 6011(e) is amended by
striking paragraph (5) and inserting the following new paragraphs:
‘‘(5) APPLICABLE NUMBER.—
‘‘(A) IN GENERAL.—For purposes of paragraph (2)(A),
the applicable number shall be—
‘‘(i) except as provided in subparagraph (B), in
the case of calendar years before 2021, 250,
‘‘(ii) in the case of calendar year 2021, 100, and
‘‘(iii) in the case of calendar years after 2021, 10.
‘‘(B) SPECIAL RULE FOR PARTNERSHIPS FOR 2018, 2019,
2020, AND 2021.—In the case of a partnership, for any cal-
endar year before 2022, the applicable number shall be—
‘‘(i) in the case of calendar year 2018, 200,
‘‘(ii) in the case of calendar year 2019, 150,
‘‘(iii) in the case of calendar year 2020, 100, and
‘‘(iv) in the case of calendar year 2021, 50.
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‘‘(6) PARTNERSHIPS REQUIRED TO FILE ON MAGNETIC
MEDIA.—Notwithstanding paragraph (2)(A), the Secretary shall
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PUBLIC LAW 116–25—JULY 1, 2019 133 STAT. 1013
require partnerships having more than 100 partners to file
returns on magnetic media.’’.
(c) RETURNS FILED BY A TAX RETURN PREPARER.—Section
6011(e)(3) is amended by adding at the end the following new 26 USC 6011.
subparagraph:
‘‘(D) EXCEPTION FOR CERTAIN PREPARERS LOCATED IN
AREAS WITHOUT INTERNET ACCESS.—The Secretary may Waiver authority.
waive the requirement of subparagraph (A) if the Secretary Determination.
determines, on the basis of an application by the tax return
preparer, that the preparer cannot meet such requirement
by reason of being located in a geographic area which
does not have access to internet service (other than dial-
up or satellite service).’’.
(d) CONFORMING AMENDMENT.—Section 6724(c) is amended by
striking ‘‘250 information returns (more than 100 information
returns in the case of a partnership having more than 100 partners)’’
and inserting ‘‘the applicable number (determined under section
6011(e)(5) with respect to the calendar year to which such returns
relate) of information returns’’.
(e) EFFECTIVE DATE.—The amendments made by this section 26 USC 6011
shall take effect on the date of the enactment of this Act. note.
SEC. 2302. UNIFORM STANDARDS FOR THE USE OF ELECTRONIC SIGNA-
TURES FOR DISCLOSURE AUTHORIZATIONS TO, AND
OTHER AUTHORIZATIONS OF, PRACTITIONERS.
Section 6061(b)(3) is amended to read as follows:
‘‘(3) PUBLISHED GUIDANCE.—
‘‘(A) IN GENERAL.—The Secretary shall publish guid-
ance as appropriate to define and implement any waiver
of the signature requirements or any method adopted under
paragraph (1).
‘‘(B) ELECTRONIC SIGNATURES FOR DISCLOSURE
AUTHORIZATIONS TO, AND OTHER AUTHORIZATIONS OF,
PRACTITIONERS.—Not later than 6 months after the date Deadline.
of the enactment of this subparagraph, the Secretary shall Procedures.
publish guidance to establish uniform standards and proce-
dures for the acceptance of taxpayers’ signatures appearing
in electronic form with respect to any request for disclosure
of a taxpayer’s return or return information under section
6103(c) to a practitioner or any power of attorney granted
by a taxpayer to a practitioner.
‘‘(C) PRACTITIONER.—For purposes of subparagraph (B), Definition.
the term ‘practitioner’ means any individual in good
standing who is regulated under section 330 of title 31,
United States Code.’’.
SEC. 2303. PAYMENT OF TAXES BY DEBIT AND CREDIT CARDS.
Section 6311(d)(2) is amended by adding at the end the fol-
lowing: ‘‘The preceding sentence shall not apply to the extent that
the Secretary ensures that any such fee or other consideration
is fully recouped by the Secretary in the form of fees paid to
the Secretary by persons paying taxes imposed under subtitle A
with credit, debit, or charge cards pursuant to such contract. Not-
withstanding the preceding sentence, the Secretary shall seek to
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minimize the amount of any fee or other consideration that the
Secretary pays under any such contract.’’.
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133 STAT. 1014 PUBLIC LAW 116–25—JULY 1, 2019
26 USC 6011 SEC. 2304. AUTHENTICATION OF USERS OF ELECTRONIC SERVICES
note. ACCOUNTS.
Effective date. Beginning 180 days after the date of the enactment of this
Time period. Act, the Secretary of the Treasury (or the Secretary’s delegate)
shall verify the identity of any individual opening an e-Services
account with the Internal Revenue Service before such individual
is able to use the e-Services tools.
Subtitle E—Other Provisions
SEC. 2401. REPEAL OF PROVISION REGARDING CERTAIN TAX COMPLI-
ANCE PROCEDURES AND REPORTS.
Section 2004 of the Internal Revenue Service Restructuring
and Reform Act of 1998 (26 U.S.C. 6012 note) is repealed.
SEC. 2402. COMPREHENSIVE TRAINING STRATEGY.
Deadline. Not later than 1 year after the date of the enactment of this
Reports. Act, the Commissioner of Internal Revenue shall submit to Congress
Plans. a written report providing a comprehensive training strategy for
employees of the Internal Revenue Service, including—
Assessment. (1) a plan to streamline current training processes,
including an assessment of the utility of further consolidating
internal training programs, technology, and funding;
(2) a plan to develop annual training regarding taxpayer
rights, including the role of the Office of the Taxpayer Advocate,
for employees that interface with taxpayers and the direct
managers of such employees;
(3) a plan to improve technology-based training;
Proposals. (4) proposals to—
(A) focus employee training on early, fair, and efficient
resolution of taxpayer disputes for employees that interface
with taxpayers and the direct managers of such employees;
and
(B) ensure consistency of skill development and
employee evaluation throughout the Internal Revenue
Service; and
Assessment. (5) a thorough assessment of the funding necessary to
implement such strategy.
TITLE III—MISCELLANEOUS
PROVISIONS
Subtitle A—Reform of Laws Governing
Internal Revenue Service Employees
SEC. 3001. PROHIBITION ON REHIRING ANY EMPLOYEE OF THE
INTERNAL REVENUE SERVICE WHO WAS INVOLUNTARILY
SEPARATED FROM SERVICE FOR MISCONDUCT.
26 USC 7804. (a) IN GENERAL.—Section 7804 is amended by adding at the
end the following new subsection:
‘‘(d) PROHIBITION ON REHIRING EMPLOYEES INVOLUNTARILY
SEPARATED.—The Commissioner may not hire any individual pre-
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viously employed by the Commissioner who was removed for mis-
conduct under this subchapter or chapter 43 or chapter 75 of
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PUBLIC LAW 116–25—JULY 1, 2019 133 STAT. 1015
title 5, United States Code, or whose employment was terminated
under section 1203 of the Internal Revenue Service Restructuring
and Reform Act of 1998 (26 U.S.C. 7804 note).’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 26 USC 7804
shall apply with respect to the hiring of employees after the date note.
of the enactment of this Act.
SEC. 3002. NOTIFICATION OF UNAUTHORIZED INSPECTION OR DISCLO- Determinations.
SURE OF RETURNS AND RETURN INFORMATION.
(a) IN GENERAL.—Subsection (e) of section 7431 is amended 26 USC 7431.
by adding at the end the following new sentences: ‘‘The Secretary
shall also notify such taxpayer if the Internal Revenue Service
or a Federal or State agency (upon notice to the Secretary by
such Federal or State agency) proposes an administrative deter-
mination 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 unauthorized inspec-
tion or disclosure and the rights of the taxpayer under such adminis-
trative determination.’’.
(b) EFFECTIVE DATE.—The amendment made by this section Applicability.
shall apply to determinations proposed after the date which is Time period.
180 days after the date of the enactment of this Act. 26 USC 7431
note.
Subtitle B—Provisions Relating to Exempt
Organizations
SEC. 3101. MANDATORY E-FILING BY 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) OTHER REPORTS AND RETURNS.—
(1) POLITICAL ORGANIZATIONS.—Section 527(j)(7) is
amended by striking ‘‘if the organization has’’ and all that
follows through ‘‘such calendar year’’.
(2) UNRELATED BUSINESS INCOME TAX RETURNS.—Section
6011 is amended by redesignating subsection (h) as subsection
(i) and by inserting after subsection (g) the following new
subsection:
‘‘(h) MANDATORY E-FILING OF UNRELATED BUSINESS INCOME
TAX RETURN.—Any organization required to file an annual return
under this section which relates to any tax imposed by section
511 shall file such return in electronic form.’’.
(c) INSPECTION OF ELECTRONICALLY FILED ANNUAL RETURNS.—
Section 6104(b) 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
as soon as practicable in a machine readable format.’’.
(d) EFFECTIVE DATE.— 26 USC 527 note.
(1) IN GENERAL.—Except as provided in paragraph (2), the
amendments made by this section shall apply to taxable years
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beginning after the date of the enactment of this Act.
(2) TRANSITIONAL RELIEF.—
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133 STAT. 1016 PUBLIC LAW 116–25—JULY 1, 2019
(A) SMALL ORGANIZATIONS.—
Determination. (i) IN GENERAL.—In the case of any small organiza-
Time period. tions, or any other organizations for which the Sec-
retary of the Treasury or the Secretary’s delegate (here-
after referred to in this paragraph as the ‘‘Secretary’’)
determines the application of the amendments made
by this section would cause undue burden without
a delay, the Secretary may delay the application of
such amendments, but such delay shall not apply to
any taxable year beginning on or after the date that
is 2 years after the enactment of this Act.
Definition. (ii) SMALL ORGANIZATION.—For purposes of clause
(i), the term ‘‘small organization’’ means any organiza-
tion—
(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.
Time period. (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 unre-
lated 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 such delay shall not apply to any taxable
year beginning on or after the date that is 2 years after
the enactment of this Act.
SEC. 3102. NOTICE REQUIRED BEFORE REVOCATION OF TAX-EXEMPT
STATUS FOR FAILURE TO FILE RETURN.
26 USC 6033. (a) IN GENERAL.—Section 6033(j)(1) is amended by striking
‘‘If an organization’’ and inserting the following:
Time period. ‘‘(A) NOTICE.—If an organization described in sub-
section (a)(1) or (i) fails to file the annual return or notice
required under either subsection for 2 consecutive years,
the Secretary shall notify the organization—
‘‘(i) that the Internal Revenue Service has no
record of such a return or notice from such organization
for 2 consecutive years, and
‘‘(ii) about the revocation that will occur under
subparagraph (B) if the organization fails to file such
a return or notice by the due date for the next such
return or notice required to be filed.
The notification under the preceding sentence shall include
information about how to comply with the filing require-
ments under subsections (a)(1) and (i).
‘‘(B) REVOCATION.—If an organization’’.
Applicability. (b) EFFECTIVE DATE.—The amendment made by this section
Time period. shall apply to failures to file returns or notices for 2 consecutive
26 USC 6033 years if the return or notice for the second year is required to
note.
be filed after December 31, 2019.
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PUBLIC LAW 116–25—JULY 1, 2019 133 STAT. 1017
Subtitle C—Revenue Provision
SEC. 3201. INCREASE IN PENALTY FOR FAILURE TO FILE.
(a) IN GENERAL.—The second sentence of subsection (a) of sec-
tion 6651 is amended by striking ‘‘$205’’ and inserting ‘‘$330’’. 26 USC 6651.
(b) INFLATION ADJUSTMENT.—Section 6651(j)(1) is amended—
(1) by striking ‘‘2014’’ and inserting ‘‘2020’’,
(2) by striking ‘‘$205’’ and inserting ‘‘$330’’, and
(3) by striking ‘‘2013’’ and inserting ‘‘2019’’.
(c) EFFECTIVE DATE.—The amendments made by this section 26 USC 6651
shall apply to returns required to be filed after December 31, note.
2019.
TITLE IV—BUDGETARY EFFECTS
SEC. 4001. DETERMINATION OF BUDGETARY EFFECTS.
The budgetary effects of this Act, for the purpose of complying
with the Statutory Pay-As-You-Go Act of 2010, shall be determined
by reference to the latest statement titled ‘‘Budgetary Effects of
PAYGO Legislation’’ for this Act, submitted for printing in the
Congressional Record by the Chairman of the House Budget Com-
mittee, provided that such statement has been submitted prior
to the vote on passage.
Approved July 1, 2019.
LEGISLATIVE HISTORY—H.R. 3151:
CONGRESSIONAL RECORD, Vol. 165 (2019):
June 10, considered and passed House.
June 13, considered and passed Senate.
DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2019):
July 1, Presidential statement.
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Æ
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