H.R. 1957 — what changed
Great American Outdoors Act
From Introduced in House to Reported in House. 9 sections amended between Introduced in House and Reported in House.
Sec. 1001 Establishment of Internal Revenue Service Independent Office of Appeals
In general— Section 7803 is amended by adding at the 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 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—
“(i) administration of, and compliance with, Federal 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 litigation on a basis which—
“(A) is fair and impartial to both the Government and the taxpayer,
“(B) promotes a consistent application and interpretation 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 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—
“(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, 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—
“(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, 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).”
Conforming amendments—
The following provisions are each amended by striking “Internal Revenue Service Office of Appeals” and inserting “Internal Revenue Service Independent Office of Appeals”:
Section 6015(c)(4)(B)(ii)(I).
Section 6320(b)(1).
Subsections (b)(1) and (d)(3) of section 6330.
Section 6603(d)(3)(B).
Section 6621(c)(2)(A)(i).
Section 7122(e)(2).
Subsections (a), (b)(1), (b)(2), and (c)(1) of section 7123.
Subsections (c)(7)(B)(i) and (g)(2)(A) of section 7430.
Section 7522(b)(3).
Section 7612(c)(2)(A).
Section 7430(c)(2) is amended by striking “Internal Revenue Service Office of Appeals” each place it appears and inserting “Internal Revenue Service Independent Office of Appeals”.
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The heading of section 6330(d)(3) is amended by inserting “Independent” “independent” after “IRS”.“irs”.
Other references— Any reference in any provision of law, or regulation or other guidance, to the Internal Revenue Service Office of Appeals shall be treated as a reference to the Internal Revenue Service Independent Office of Appeals.
Savings provisions— Rules similar to the rules of paragraphs (2) through (6) of section 1001(b) of the Internal Revenue Service Restructuring and Reform Act of 1998 shall apply for purposes of this section (and the amendments made by this section).
Effective date—
In general— Except as otherwise provided in this subsection, the amendments made by this section shall take effect on the date of the enactment of this Act.
Access to case files— Section 7803(e)(7) of the Internal Revenue Code of 1986, as added by subsection (a), shall apply to conferences occurring after the date which is 1 year after the date of the enactment of this Act.
Sec. 1205 Private debt collection and special compliance personnel program
Certain tax receivables not eligible for collection under tax collection contracts— Section 6306(d)(3) is amended by striking “or” at the end of subparagraph (C) and by inserting after subparagraph (D) the following new subparagraphs:
“(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), 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),”
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”.
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”.
Clarification that special compliance personnel program account may be used for program costs—
In general— Section 6307(b) is amended—
in paragraph (2), by striking all that follows “under such program” and inserting a period, and
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in paragraph (3), by striking all that follows “out of such account” and inserting “for other than program costs”.costs.”.
Communications, software, and technology costs treated as program costs— Section 6307(d)(2)(B) is amended by striking “telecommunications” and inserting “communications, software, technology”.
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.”
Effective dates—
In general— Except as otherwise provided in this subsection, the amendments made by this section shall apply to tax receivables identified by the Secretary (or the Secretary’s delegate) after December 31, 2020.
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.
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. 2003 Information sharing and analysis center
In general— The Secretary of the Treasury (or the Secretary’s delegate) may participate in an information sharing and analysis center to centralize, standardize, and enhance data compilation and analysis to facilitate sharing actionable data and information with respect to identity theft tax refund fraud.
Development of performance metrics— The Secretary of the Treasury (or the Secretary’s delegate) shall develop metrics for measuring the success of such center in detecting and preventing identity theft tax refund fraud.
Disclosure—
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 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—
“(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, 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—
“(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, 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 electronic 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 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, 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—
“(I) performing the function such person is designated to perform under such subparagraph,
“(II) facilitating disclosures authorized under subparagraph (A) to persons described in subparagraph (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.”
Application of civil and criminal penalties—
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Section 6103(a)(3), as amended by this Act, is amended by striking “or (13)” and inserting “(13), “, (13), or (14)”.
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Section 7213(a)(2), as amended by this Act, is amended by striking “or (13)” and inserting “(13), “, (13), or (14)”.
Sec. 2008 Notification of suspected identity theft
In general— Chapter 77 is amended by adding at the end the following new section:
“7529. Notification of suspected identity theft
“(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—
“(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 individual may take in order to protect the individual from harm relating to the unauthorized use, and
“(E) offer identity protection measures to the individual, 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 unauthorized use of the identity of the individual to obtain employment.
“(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—
“(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,”
Additional measures—
Examination of both paper and electronic statements 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, regardless of whether such statements or returns are submitted electronically or on paper.
Improvement of effective return processing program 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.”.
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Underreporting of income— The Secretary of the Treasury (or the Secretary's delegate) shall establish procedures to ensure that income reported in connection with the unauthorized 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.
Clerical amendment— The table of sections for chapter 77 is amended by adding at the end the following new item:
Effective date— The amendments made by this section shall apply to determinations made after the date that is 6 months after the date of the enactment of this Act.
Sec. 2009 Guidelines for stolen identity refund fraud cases
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In general— Not later than 1 year after the date of the enactment of this Act, the Secretary of the Treasury (or the Secretary’s delegate), in consultation with the National Taxpayer Advocate, shall develop and implement publicly available guidelines for management of cases involving stolen identity refund fraud in a manner that reduces the administrative burden on taxpayers who are victims of such fraud.
Standards and procedures To be considered— The guidelines described in subsection (a) may include—
standards for—
the average length of time in which a case involving stolen identity refund fraud should be resolved;
the maximum length of time, on average, a taxpayer 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
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;
standards for opening, assigning, reassigning, or closing a case involving stolen identity refund fraud; and
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. 2102 Internet platform for Form 1099 filings
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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 Internet website or other electronic media, with a user interface and functionality similar to the Business Services Online Suite of Services provided by the Social Security Administration, that provides access to resources and guidance provided by the Internal Revenue Service and allows persons to—
prepare and file Forms 1099;
prepare Forms 1099 for distribution to recipients other than the Internal Revenue Service; and
maintain a record of completed, filed, and distributed Forms 1099.
Electronic services treated as supplemental; application of security standards— The Secretary shall ensure that the services described in subsection (a)—
are a supplement to, and not a replacement for, other services provided by the Internal Revenue Service to taxpayers; and
comply with applicable security standards and guidelines.
Sec. 2201 Disclosure of taxpayer information for third-party income verification
In general— Not later than 1 year after the close of 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—
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is fully automated and accomplished through the internet; Internet; and
is accomplished in as close to real-time as is practicable.
Qualified disclosure— For purposes of this section, the term qualified disclosure means a disclosure under section 6103(c) of the Internal Revenue Code of 1986 of returns or return information 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.
Application of security standards— The Secretary shall ensure that the program described in subsection (a) complies with applicable security standards and guidelines.
User fee—
In general— During the 2-year period beginning on the first day of the 6th 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 subsection (a), including the costs of any necessary infrastructure or technology.
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. 3102 Notice required before revocation of tax-exempt status for failure to file return
In general— Section 6033(j)(1) is amended by striking “If an organization” and inserting the following:
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“(A) NoticeNotice—If an organization described in subsection (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—
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“(i) In general—If an organization described in subsection (a)(1) or (i) fails to file that the annual Internal Revenue Service has no record of such a return or notice required under either subsection from such organization for 2 consecutive years, the Secretary shall notify the organization—and
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“(I) “(ii) about the revocation that will occur under subparagraph (B) if the Internal Revenue Service has no record of organization fails to file such a return or notice from such organization by the due date for 2 consecutive years, andthe next such return or notice required to be filed.
removed
“(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.
“(B) Revocation—If an organization”
Effective date— The amendment made by this section shall apply to failures to file returns or notices for 2 consecutive years if the return or notice for the second year is required to be filed after December 31, 2019.
Sec. 3201 Increase in penalty for failure to file
In general— The second sentence of subsection (a) of section 6651 is amended by striking “$205” and inserting “$330”.
Inflation adjustment— Section 6651(j)(1) is amended—
by striking “2014” and inserting “2020”,
by striking “$205” and inserting “$330”, and
by striking “2013” and inserting “2019”.
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Effective date— The amendments made by this subsection section shall apply to returns required to be filed after December 31, 2019.