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H.R. 4994 (111th): Medicare and Medicaid Extenders Act of 2010

The text of the bill below is as of Apr 14, 2010 (Passed the House).


I

111th CONGRESS

2d Session

H. R. 4994

IN THE HOUSE OF REPRESENTATIVES

AN ACT

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

1.

Short title, etc

(a)

Short title

This Act may be cited as the Taxpayer Assistance Act of 2010.

(b)

Amendment of Internal Revenue Code of 1986

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 of this Act is as follows:

Sec. 1. Short title, etc.

Title I—Cell Phones and Electronic Filing

Sec. 101. Removal of cellular telephones and similar telecommunications equipment from listed property.

Sec. 102. Electronic filing exemption for religious reasons.

Sec. 103. Accelerate interest on refunds for returns filed electronically.

Title II—Collection

Sec. 201. Study on the effectiveness of collection alternatives.

Sec. 202. Repeal of partial payment requirement on submissions of offers-in-compromise.

Title III—Taxpayer Assistance and Protection Improvements

Sec. 301. Referrals to Low-Income Taxpayer Clinics permitted.

Sec. 302. Low-income taxpayer clinics.

Sec. 303. EITC outreach.

Sec. 304. Taxpayer notification of suspected identity theft.

Sec. 305. Clarification of IRS unclaimed refund authority.

Sec. 306. Study on delivery of tax refunds.

Sec. 307. Study on timely processing and use of information returns.

Sec. 308. Study on easing the burden of in-person tax payments.

Title IV—Revenue Provisions

Sec. 401. Expansion of bad check penalty to electronic payments.

Sec. 402. Increase in information return penalties.

Sec. 403. Budget compliance.

I

Cell Phones and Electronic Filing

101.

Removal of cellular telephones and similar telecommunications equipment from listed property

(a)

In general

Subparagraph (A) of section 280F(d)(4) (defining listed property) is amended by adding and at the end of clause (iv), by striking clause (v), and by redesignating clause (vi) as clause (v).

(b)

Effective date

The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 2009.

102.

Electronic filing exemption for religious reasons

Paragraph (3) of section 6011(e) (relating to special rule for tax return preparers) is amended by adding at the end the following new subparagraph:

(D)

Exemption for religious reasons

The Secretary may exempt from requirements under subparagraph (A) a tax return preparer who—

(i)

is a member of a recognized religious sect or division thereof, and

(ii)

is an adherent of established teachings or tenets that do not permit the use of magnetic media.

.

103.

Accelerate interest on refunds for returns filed electronically

(a)

In general

Subsection (e) of section 6611 (relating to disallowance of interest on certain overpayments) is amended by adding at the end the following new paragraph:

(4)

Special rule

In the case of any individual income tax return relating to income tax filed by electronic means, paragraph (1) shall be applied by substituting 30 days for 45 days each place it appears.

.

(b)

Effective date

The amendments made by subsection (a) shall apply to taxable years beginning after December 31, 2011.

II

Collection

201.

Study on the effectiveness of collection alternatives

(a)

In general

The Secretary of the Treasury shall conduct a study to assess the effectiveness of collection alternatives, especially offers-in-compromise, on long-term tax compliance. Such a study shall analyze a group of taxpayers who applied for offers-in-compromise 5 or more years ago and compare the amount of revenue collected from the taxpayers whose offers were accepted with the amount of revenue collected from the taxpayers whose offers were rejected, and compare, among the taxpayers whose offers were rejected, the amount they offered with the amounts collected.

(b)

Report

Not later than 1 year after the date of enactment of this Act, the Secretary of the Treasury shall submit a report to Congress containing the results of the study conducted under subsection (a).

202.

Repeal of partial payment requirement on submissions of offers-in-compromise

(a)

In general

Section 7122 is amended by striking subsection (c) and by redesignating subsections (d), (e), (f), and (g) as subsection (c), (d), (e), and (f), respectively.

(b)

Conforming amendments

(1)

Paragraph (3) of section 7122(d) is amended—

(A)

by inserting and at the end of the subparagraph (A),

(B)

by striking , and at the end of subparagraph (B) and inserting a period, and

(C)

by striking subparagraph (C).

(2)

Subsection (f) of section 6159 is amended by striking section 7122(e) and inserting section 7122(d).

(c)

Effective date

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

III

Taxpayer Assistance and Protection Improvements

301.

Referrals to Low-Income Taxpayer Clinics permitted

(a)

In general

Subsection (c) of section 7526 is amended by adding at the end the following new paragraph:

(6)

Treasury employees permitted to refer taxpayers to qualified low-income taxpayer clinics

Notwithstanding any other provision of law, officers and employees of the Department of the Treasury may refer taxpayers for advice and assistance to qualified low-income taxpayer clinics receiving funding under this section.

.

(b)

Effective date

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

302.

Low-income taxpayer clinics

(a)

Increase in authorized grants

Paragraph (1) of section 7526(c) (relating to aggregate limitation) is amended by striking $6,000,000 and inserting $20,000,000.

(b)

Clerical amendment

Section 7526(c)(5) is amended by inserting qualified before low-income.

(c)

Effective Date

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

303.

EITC outreach

(a)

In general

Section 32 (relating to earned income) is amended by adding at the end the following new subsection:

(n)

Notification of potential eligibility for credit and refund

(1)

In general

To the extent possible and on an annual basis, the Secretary shall provide to each taxpayer who—

(A)

for any preceding taxable year for which credit or refund is not precluded by section 6511, and

(B)

did not claim the credit under subsection (a) but may be allowed such credit for any such taxable year based on return or return information (as defined in section 6103(b)) available to the Secretary,

notice that such taxpayer may be eligible to claim such credit and a refund for such taxable year.
(2)

Notice

Notice provided under paragraph (1) shall be in writing and sent to the last known address of the taxpayer.

.

(b)

Effective date

The amendment made by this section shall take effect on the date of the enactment of this Act.

304.

Taxpayer notification of suspected identity theft

(a)

In general

Chapter 77 (relating to miscellaneous provisions), as amended by this Act, is amended by adding at the end the following new section:

7529.

Notification of suspected identity theft

If, in the course of an investigation under the internal revenue laws, the Secretary determines that there was or may have been an unauthorized use of the identity of the taxpayer or a dependent of the taxpayer, the Secretary shall, to the extent permitted by law—

(1)

as soon as practicable and without jeopardizing such investigation, notify the taxpayer of such determination, and

(2)

if any person is criminally charged by indictment or information with respect to such unauthorized use, notify such taxpayer as soon as practicable of such charge.

.

(b)

Clerical amendment

The table of sections for chapter 77 is amended by adding at the end the following new item:

Sec. 7529. Notification of suspected identity theft.

.

(c)

Effective date

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

305.

Clarification of IRS unclaimed refund authority

Paragraph (1) of section 6103(m) (relating to tax refunds) is amended by inserting , and through any other means of mass communication, after media.

306.

Study on delivery of tax refunds

(a)

In general

The National Taxpayer Advocate shall conduct a study on the feasibility of delivering tax refunds on debit cards, prepaid cards, and other electronic means to assist individuals that do not have access to financial accounts or institutions.

(b)

Report

Not later than 1 year after the date of enactment of this Act, the National Taxpayer Advocate shall submit a report to Congress containing the results of the study conducted under subsection (a).

307.

Study on timely processing and use of information returns

(a)

In general

The Secretary of the Treasury shall conduct a study on the administrative and legislative changes that would be needed to receive and process information returns before processing income tax returns.

(b)

Report

Not later than 1 year after the date of the enactment of this Act, the Secretary shall submit a report to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate containing the results of the study conducted under subsection (a), together with such recommendations as the Secretary considers necessary or appropriate for implementation of these changes.

308.

Study on easing the burden of in-person tax payments

(a)

In general

The Secretary of the Treasury shall conduct a study on how to reduce the number of taxpayers making payments at IRS Taxpayer Assistance Centers. The report shall include an analysis of—

(1)

whether the Federal Tax Deposit Coupon (Form 8109) could be expanded so that it can be used with all Federal tax deposits and payments, and

(2)

what current or new return filing, payment, and proof of payment options could be implemented to reduce the burden of in-person payments.

(b)

Report

Not later than 1 year after the date of the enactment of this Act, the Secretary shall submit a report to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate containing the results of the study conducted under subsection (a), together with such recommendations as the Secretary considers necessary or appropriate.

IV

Revenue Provisions

401.

Expansion of bad check penalty to electronic payments

(a)

In general

Section 6657 (relating to bad checks) is amended by adding at the end the following: Except as otherwise provided by the Secretary, any authorization of a payment by commercially acceptable means (within the meaning of section 6311) shall be treated for purposes of this section in the same manner as a check..

(b)

Effective date

The amendment made by subsection (a) shall apply to authorizations of payments made after December 31, 2010.

402.

Increase in information return penalties

(a)

Failure To file correct information returns

(1)

In general

Subsections (a)(1), (b)(1)(A), and (b)(2)(A) of section 6721 are each amended by striking $50 and inserting $100.

(2)

Aggregate annual limitation

Subsections (a)(1), (d)(1)(A), and (e)(3)(A) of section 6721 are each amended by striking $250,000 and inserting $1,500,000.

(b)

Reduction where correction within 30 days

(1)

In general

Subparagraph (A) of section 6721(b)(1) is amended by striking $15 and inserting $30.

(2)

Aggregate annual limitation

Subsections (b)(1)(B) and (d)(1)(B) of section 6721 are each amended by striking $75,000 and inserting $250,000.

(c)

Reduction where correction on or before August 1

(1)

In general

Subparagraph (A) of section 6721(b)(2) is amended by striking $30 and inserting $60.

(2)

Aggregate annual limitation

Subsections (b)(2)(B) and (d)(1)(C) of section 6721 are each amended by striking $150,000 and inserting $500,000.

(d)

Aggregate annual limitations for persons with gross receipts of not more than $5,000,000

Paragraph (1) of section 6721(d) is amended—

(1)

by striking $100,000 in subparagraph (A) and inserting $500,000,

(2)

by striking $25,000 in subparagraph (B) and inserting $75,000, and

(3)

by striking $50,000 in subparagraph (C) and inserting $200,000.

(e)

Penalty in case of intentional disregard

Paragraph (2) of section 6721(e) is amended by striking $100 and inserting $250.

(f)

Adjustment for inflation

Section 6721 is amended by adding at the end the following new subsection:

(f)

Adjustment for inflation

(1)

In general

For each fifth calendar year beginning after 2012, each of the dollar amounts under subsections (a), (b), (d) (other than paragraph (2)(A) thereof), and (e) shall be increased by such dollar amount multiplied by the cost-of-living adjustment determined under section 1(f)(3) determined by substituting calendar year 2011 for calendar year 1992 in subparagraph (B) thereof.

(2)

Rounding

If any amount adjusted under paragraph (1)—

(A)

is not less than $75,000 and is not a multiple of $500, such amount shall be rounded to the next lowest multiple of $500, and

(B)

is not described in subparagraph (A) and is not a multiple of $10, such amount shall be rounded to the next lowest multiple of $10.

.

(g)

Effective date

The amendments made by this section shall apply with respect to information returns required to be filed on or after January 1, 2011.

403.

Budget compliance

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 Committee on the Budget of the House of Representatives, provided that such statement has been submitted prior to the vote on passage.

Passed the House of Representatives April 14, 2010.

Lorraine C. Miller,

Clerk.