H.R. 1957 — what changed

“(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 Independent 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 without 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—

changed “(i) administration of, and compliance with, Federal tax laws,laws;

changed “(ii) a broad range of compliance cases, 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 litigation on a basis which—

changed “(A) is fair and impartial to both the Government and the taxpayer,taxpayer;

changed “(B) promotes a consistent application and interpretation of, and voluntary compliance with, the Federal tax laws, 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 of a notice of deficiency authorized under section 6212 requests referral to the Internal Revenue Service Independent Office of Appeals and such request is denied, the Commissioner of Internal Revenue shall provide such taxpayer a written notice which—

changed “(i) provides a detailed description of the facts involved, the basis for the decision to deny the request, and a detailed explanation of how the basis of such decision applies to such facts, 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 Revenue 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

“(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 taxpayer 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.

“(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 paragraph—

“(i) In general—The term specified taxpayer means—

changed “(I) in the case of any taxpayer who is a natural person, a taxpayer whose adjusted gross income does not exceed $400,000 for the taxable year to which the dispute relates, relates; and

“(II) in the case of any other taxpayer, a taxpayer whose gross receipts do not exceed $5,000,000 for the taxable year to which the dispute relates.

“(ii) Aggregation rule—Rules similar to the rules of section 448(c)(2) shall apply for purposes of clause (i)(II).”

“(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—

changed “(A) the administrative record established at the time of the determination, determination; and

“(B) any additional newly discovered or previously unavailable evidence.”

“(f) Equitable relief

“(1) In general—Under procedures prescribed by the Secretary, if—

changed “(A) taking into account all the facts and circumstances, it is inequitable to hold the individual liable for any unpaid tax or any deficiency (or any portion of either), either); and

changed “(B) relief is not available to such individual under subsection (b) or (c),(c);

“(2) Limitation—A request for equitable relief under this subsection may be made with respect to any portion of any liability that—

changed “(A) has not been paid, provided that such request is made before the expiration of the applicable period of limitation under section 6502, 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.”

changed “(E) a taxpayer substantially all of whose income consists 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), 93–66); or

changed “(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),”Secretary);”

“(C) reimbursement of the Internal Revenue Service or other government agencies for the cost of administering the qualified tax collection program under section 6306.”

“(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 collection 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—

changed “(A) informs the taxpayer that contacts with persons other than the taxpayer are intended to be made during such period, period; and

“(B) except as otherwise provided by the Secretary, is provided to the taxpayer not later than 45 days before the beginning of such period.”

“(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—

changed “(I) states facts clearly establishing that the Secretary has made reasonable requests for the information that is the subject of the summons, summons; and

changed “(II) is attached to such summons,”summons;”

“(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.”

“(5) Taxpayer Advocate Directives—In the case of any Taxpayer Advocate Directive issued by the National Taxpayer Advocate pursuant to a delegation of authority from the Commissioner of Internal Revenue—

changed “(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, directive; and

“(B) in the case of any directive which is modified or rescinded by a Deputy Commissioner, the National Taxpayer Advocate may (not later than 90 days after such modification or rescission) appeal to the Commissioner, and the Commissioner shall (not later than 90 days after such appeal is made) ensure compliance with such directive 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 Commissioner pursuant to such appeal.”

“(VIII) identify any Taxpayer Advocate Directive which was not honored by the Internal Revenue Service in a timely manner, as specified under paragraph (5);”

“(E) Coordination with Treasury Inspector General 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 Advocate does not duplicate any action that the Treasury Inspector General for Tax Administration has already undertaken or has a plan to undertake.”

“(d) Statistical support for National Taxpayer Advocate—Upon request of the National Taxpayer Advocate, the Secretary shall, to the extent practicable, provide the National Taxpayer 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 information provided by the National Taxpayer Advocate for statistical validity and sound statistical methodology.”

“(XII) with respect to any statistical information included in such report, include a statement of whether such statistical information was reviewed or provided by the Secretary under section 6108(d) and, if so, whether the Secretary determined such information to be statistically valid and based on sound statistical methodology; and”

“7526A. Return preparation programs for applicable taxpayers

“(a) Establishment of Volunteer Income Tax Assistance Matching Grant Program—The Secretary shall establish a Community Volunteer Income Tax Assistance Matching Grant Program under which the Secretary may, subject to the availability of appropriated funds, make grants to provide matching funds for the development, expansion, or continuation of qualified return 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 program operation in accordance with cost principles under the applicable Office of Management and Budget circular, including—

changed “(i) wages or salaries of persons coordinating the activities of the program,program;

changed “(ii) developing training materials, conducting training, and performing quality reviews of the returns prepared under the program,program;

changed “(iii) equipment purchases, purchases; and

changed “(iv) vehicle-related expenses associated with remote or rural tax preparation services,services;

changed “(B) outreach and educational activities described in subsection (c)(2)(B), (c)(2)(B); and

“(C) services related to financial education and capability, 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—

changed “(A) the salary (including fringe benefits) of individuals performing services for the program,program;

changed “(B) the cost of equipment used in the program, program; and

“(C) other ordinary and necessary costs associated with the program.

“(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 demonstrate—

changed “(A) assistance to applicable taxpayers, with emphasis on outreach to, and services for, such taxpayers,taxpayers;

changed “(B) taxpayer outreach and educational activities relating to eligibility and availability of income supports available through this title, including the earned income tax credit, credit; and

“(C) specific outreach and focus on one or more underserved 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

“(1) In general—The Secretary shall establish procedures for, and shall conduct not less frequently than once every 5 calendar years during which a qualified return preparation program is operating under a grant under this section, periodic site visits—

changed “(A) to ensure the program is carrying out the purposes of this section, section; and

“(B) to determine whether the program meets such 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—

changed “(A) is awarded a grant under this section, secti;n, and

“(B) is subsequently determined—

changed “(i) not to meet the program adherence standards described in paragraph (1)(B), (1)(B); or

changed “(ii) not to be otherwise carrying out the purposes of this section,section;

“(e) Definitions—For purposes of this section—

“(1) Qualified return preparation program—The term qualified return preparation program means any program—

changed “(A) which provides assistance to individuals, not less than 90 percent of whom are applicable taxpayers, in preparing and filing Federal income tax returns,returns;

changed “(B) which is administered by a qualified entity,entity;

changed “(C) in which all volunteers who assist in the preparation of Federal income tax returns meet the training requirements prescribed by the Secretary, 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—

changed “(i) is an eligible organization,organization;

changed “(ii) is in compliance with Federal tax filing and payment requirements,requirements;

changed “(iii) is not debarred or suspended from Federal contracts, grants, or cooperative agreements, agreements; and

“(iv) agrees to provide documentation to substantiate any matching funds provided pursuant to the grant program under this section.

“(B) Eligible organization—The term eligible organization means—

changed “(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,Act;

changed “(ii) an organization described in section 501(c) and exempt from tax under section 501(a),501(a);

“(iii) a local government agency, including—

changed “(I) a county or municipal government agency, agency; and

changed “(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, subdivision, or other wholly owned tribal entity,entity;

changed “(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), organization); or

“(v) in the case of applicable taxpayers and members of underserved populations with respect to which no organizations described in the preceding clauses are available—

changed “(I) a State government agency, 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 taxpayer 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 $30,000,000 per fiscal year (exclusive of costs of administering the program) to grants under this section.

“(g) Promotion of programs

“(1) In general—The Secretary shall promote tax preparation 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—Qualified return preparation programs receiving a grant under this section are encouraged, in appropriate cases, to—

changed “(A) advise taxpayers of the availability of, and eligibility requirements for receiving, advice and assistance from qualified low-income taxpayer clinics receiving funding under section 7526, 7526; and

“(B) provide information regarding the location of, and contact information for, such clinics.”

“(6) Provision of information regarding qualified low-income taxpayer clinics—Notwithstanding any other provision of law, officers and employees of the Department of the Treasury may—

changed “(A) advise taxpayers of the availability of, and eligibility requirements for receiving, advice and assistance from one or more specific qualified low-income taxpayer clinics receiving funding under this section, section; and

“(B) provide information regarding the location of, and contact information for, such clinics.”

“(13) Disclosure to whistleblowers

“(A) In general—The Secretary may disclose, to any individual providing information relating to any purpose 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 otherwise reasonably available, with respect to the correct determination of tax liability for tax, or the amount to be collected with respect to the enforcement of any other provision of this title.

“(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 information 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—

changed “(I) information on the status and stage of any investigation or action related to such information, information; and

“(II) in the case of a determination of the amount of any award under section 7623(b), the reasons for such determination.”

“(d) Civil action To protect against retaliation cases

“(1) Anti-retaliation whistleblower protection for employees—No employer, or any officer, employee, contractor, subcontractor, or agent of such employer, may discharge, 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—

changed “(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 Treasury, the Treasury Inspector General for Tax Administration, the Comptroller General of the United States, the Department of Justice, the United States Congress, a person with supervisory authority over the employee, or any other person working for the employer who has the authority to investigate, discover, or terminate misconduct, 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—

changed “(i) filing a complaint with the Secretary of Labor, Labor; or

“(ii) if the Secretary of Labor has not issued a final decision within 180 days of the filing of the complaint 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—

changed “(I) “behavior described in paragraph (1)” shall be substituted for “behavior described in paragraphs (1) through (4) of subsection (a)” each place it appears in paragraph (2)(B) thereof, thereof; and

“(II) “a violation of paragraph (1)” shall be substituted for “a violation of subsection (a)” each place it appears.

“(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—

changed “(i) reinstatement with the same seniority status that the employee would have had, but for the reprisal,reprisal;

changed “(ii) the sum of 200 percent of the amount of back pay and 100 percent of all lost benefits, with interest, interest; and

“(iii) compensation for any special damages sustained as a result of the reprisal, including litigation costs, expert witness fees, and reasonable attorney fees.

“(4) Rights retained by employee—Nothing in this section 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 disputes

“(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 agreement.

“(B) Predispute arbitration agreements—No predispute arbitration agreement shall be valid or enforceable, if the agreement requires arbitration of a dispute arising under this subsection.”

“(14) Disclosure of return information for purposes of cybersecurity and the prevention of identity theft tax refund fraud

“(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.

“(B) Specified ISAC participants—For purposes of this paragraph—

“(i) In general—The term specified ISAC participant means—

changed “(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 of 2019, 2019; 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 Secretary 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.

“(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—

changed “(I) in the case of such return filed electronically, the internet protocol address, device identification, 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 Secretary may identify for purposes of this subclause, subclause; and

changed “(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 electronic filer identification number of such preparer,preparer;

changed “(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 information 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 bank account and routing information provided for making a refund in connection with such return, return; and

“(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 information

“(i) Designated third parties—Any return information received by a person described in subparagraph (B)(i)(I) shall be used only for the purposes of and to the extent necessary in—

changed “(I) performing the function such person is designated to perform under such subparagraph,subparagraph;

changed “(II) facilitating disclosures authorized under subparagraph (A) to persons described in subparagraph (B)(i)(II), (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 unauthorized 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.”

“(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—

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

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

changed “(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), (4)(E); and

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

removed Not later than 2 years after the date of the enactment of this Act, the Secretary of the Treasury (or the Secretary’s delegate), in coordination with the Bureau of Fiscal Service and the Internal Revenue Service, and in consultation with private sector financial institutions, shall submit a written report to Congress describing how the government can utilize new payment platforms to increase the number of tax refunds paid by electronic funds transfer. Such report shall weigh the interests of reducing identity theft tax refund fraud, reducing the Federal Government’s costs in delivering tax refunds, the costs and any associated fees charged to taxpayers (including monthly and point-of-service fees) to access their tax refunds, the impact on individuals who do not have access to financial accounts or institutions, and ensuring payments are made to accounts at a financial institution that complies with section 21 of the Federal Deposit Insurance Act, chapter 2 of title I of Public Law 91–508, and subchapter II of chapter 53 of title 31, United States Code (commonly referred to collectively as the “Bank Secrecy Act”) and the USA PATRIOT Act. Such report shall include any legislative recommendations necessary to accomplish these goals.

added “7529. Notification of suspected identity theft

added “(a) In general—If the Secretary determines that there has been or may have been an unauthorized use of the identity of any individual, the Secretary shall, without jeopardizing an investigation relating to tax administration—

added “(1) as soon as practicable—

added “(A) notify the individual of such determination;

added “(B) provide instructions on how to file a report with law enforcement regarding the unauthorized use;

added “(C) identify any steps to be taken by the individual to permit law enforcement to access personal information of the individual during the investigation;

added “(D) provide information regarding actions the individual may take in order to protect the individual from harm relating to the unauthorized use; and

added “(E) offer identity protection measures to the individual, such as the use of an identity protection personal identification number; and

added “(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—

added “(A) whether an investigation has been initiated in regards to such unauthorized use;

added “(B) whether the investigation substantiated an unauthorized use of the identity of the individual; and

added “(C) whether—

added “(i) any action has been taken against a person relating to such unauthorized use; or

added “(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.

added “(b) Employment-Related identity theft

added “(1) In general—For purposes of this section, the unauthorized use of the identity of an individual includes the unauthorized use of the identity of the individual to obtain employment.

added “(2) Determination of employment-related identity 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—

added “(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

added “(B) provided to the Internal Revenue Service by the Social Security Administration regarding any statement described in section 6051;”

removed “7529. Notification of suspected identity theft

removed “(a) In general—If the Secretary determines that there has been or may have been an unauthorized use of the identity of any individual, the Secretary shall, without jeopardizing an investigation relating to tax administration—

removed “(1) as soon as practicable—

removed “(A) notify the individual of such determination,

removed “(B) provide instructions on how to file a report with law enforcement regarding the unauthorized use,

removed “(C) identify any steps to be taken by the individual to permit law enforcement to access personal information of the individual during the investigation,

removed “(D) provide information regarding actions the individual may take in order to protect the individual from harm relating to the unauthorized use, and

removed “(E) offer identity protection measures to the individual, such as the use of an identity protection personal identification number, and

removed “(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—

removed “(A) whether an investigation has been initiated in regards to such unauthorized use,

removed “(B) whether the investigation substantiated an unauthorized use of the identity of the individual, and

removed “(C) whether—

removed “(i) any action has been taken against a person relating to such unauthorized use, or

removed “(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.

removed “(b) Employment-Related identity theft

removed “(1) In general—For purposes of this section, the unauthorized use of the identity of an individual includes the unauthorized use of the identity of the individual to obtain employment.

removed “(2) Determination of employment-related identity 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—

removed “(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

removed “(B) provided to the Internal Revenue Service by the Social Security Administration regarding any statement described in section 6051,”

added “(b) Enhanced penalty for improper use or disclosure relating to identity theft

added “(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—

added “(A) by substituting “$1,000” for “$250”; and

added “(B) by substituting “$50,000” for “$10,000”.

added “(2) Separate application of total penalty limitation—The limitation on the total amount of the penalty under subsection (a) shall be applied separately with respect to disclosures or uses to which this subsection applies and to which it does not apply.”

“(f) Internal Revenue Service Chief Information Officer

“(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 Commissioner of Internal Revenue acting through the IRS CIO.

“(3) General duties and responsibilities—The IRS CIO shall—

changed “(A) be responsible for the development, implementation, and maintenance of information technology for the Internal Revenue Service,Service;

changed “(B) ensure that the information technology of the Internal Revenue Service is secure and integrated,integrated;

changed “(C) maintain operational control of all information technology for the Internal Revenue Service,Service;

changed “(D) be the principal advocate for the information technology needs of the Internal Revenue Service, Service; and

“(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—

changed “(i) the goals and requirements specified in subparagraphs (A) through (D), (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—

changed “(i) include performance measurements of such technology and of the implementation of such plan,plan;

changed “(ii) include a plan for an integrated enterprise architecture of the information technology of the Internal Revenue Service,Service;

changed “(iii) include and take into account the resources needed to accomplish such plan,plan;

changed “(iv) take into account planned major acquisitions of information technology by the Internal Revenue Service, Service; and

“(v) align with the needs and strategic plan of the Internal Revenue Service.

“(B) Plan updates—The IRS CIO shall, not less frequently than annually, review and update the strategic plan under subparagraph (A) (including the plan for an integrated enterprise architecture described in subparagraph (A)(ii)) to take into account the development of new information technology and the needs of the Internal Revenue Service.

“(5) Scope of authority

“(A) Information technology—For purposes of this 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—

changed “(i) the Office of the Taxpayer Advocate,Advocate;

changed “(ii) the Criminal Investigation Division of the Internal Revenue Service, Service; and

“(iii) except as otherwise provided by the Secretary with respect to information technology related to matters described in subsection (b)(3)(B), the Office of the Chief Counsel.”

“7812. Streamlined critical pay authority for information technology positions

“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—

changed “(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)”,(a)”;

changed “(B) without regard to subparagraph (B) of subsection (a)(1), (a)(1); and

changed “(C) by substituting “the date of the enactment of the Taxpayer First Act of 2019” for “June 1, 1998” in subsection (a)(6),(a)(6);

changed “(2) section 9504 of such title 5 shall be applied 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” each place it appears in subsections (a) and (b), (b); and

“(3) section 9505 of such title shall be applied—

changed “(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), (a); and

“(B) by substituting “the information technology operations” for “significant functions” in subsection (a).”

“(5) Applicable number

“(A) In general—For purposes of paragraph (2)(A), the applicable number shall be—

changed “(i) except as provided in subparagraph (B), in the case of calendar years before 2021, 250,250;

changed “(ii) in the case of calendar year 2021, 100, 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 calendar year before 2022, the applicable number shall be—

changed “(i) in the case of calendar year 2018, 200,200;

changed “(ii) in the case of calendar year 2019, 150,150;

changed “(iii) in the case of calendar year 2020, 100, 100; and

“(iv) in the case of calendar year 2021, 50.

“(6) Partnerships required to file on magnetic media—Notwithstanding paragraph (2)(A), the Secretary shall require partnerships having more than 100 partners to file returns on magnetic media.”

“(D) Exception for certain preparers located in areas without internet access—The Secretary may waive the requirement of subparagraph (A) if the Secretary 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).”