H.R. 6523 (112th): ITIN Reform Act of 2012

112th Congress, 2011–2013. Text as of Sep 21, 2012 (Introduced).

Status & Summary | PDF | Source: GPO

I

112th CONGRESS

2d Session

H. R. 6523

IN THE HOUSE OF REPRESENTATIVES

September 21, 2012

introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to require that ITIN applicants submit their application in person at taxpayer assistance centers, and for other purposes.

1.

Short title

This Act may be cited as the ITIN Reform Act of 2012.

2.

Requirements for the issuance of ITINs

(a)

In general

Section 6109 of the Internal Revenue Code of 1986 is amended by adding at the end the following:

(i)

Special rules relating to the issuance of ITINs

(1)

In general

The Secretary may issue an individual taxpayer identification number to an individual only if the requirements of paragraphs (2) and (3) are met.

(2)

In-person application

The requirements of this paragraph are met if, with respect to an application for an individual taxpayer identification number—

(A)

the applicant submits the application in person at a taxpayer assistance center of the Internal Revenue Service a Form W–7 (or any successor thereof), together with the required documentation, or

(B)

in the case of an applicant who resides outside of the United States, the applicant submits the application in person to an employee of the Internal Revenue Service or a designee of the Secretary at a United States diplomatic mission or consular post, together with the required documentation.

(3)

Initial on-site verification of documentation

The requirements of this paragraph are met if, with respect to each application, an employee of the Internal Revenue Service at the taxpayer assistance center, or the employee or designee described in paragraph (2)(B), as the case may be, conducts an initial verification of the documentation supporting the application submitted under paragraph (2).

(4)

Required documentation

For purposes of this subsection—

(A)

required documentation includes such documentation as the Secretary may require that proves the individual’s identity and foreign status, and

(B)

the Secretary may only accept original documents.

(5)

Exceptions

(A)

Military spouses

Paragraph (1) shall not apply to the spouse, or the dependents, without a social security number of a taxpayer who is a member of the Armed Forces of the United States.

(B)

Treaty benefits

Paragraph (1) shall not apply to a nonresident alien applying for an individual taxpayer identification number for the purpose of claiming tax treaty benefits.

(6)

Term

(A)

In general

An individual taxpayer identification number issued after the date of the enactment of this subsection shall be valid only for the 3-year period which includes the taxable year of the individual for which such number is issued and the 2 succeeding taxable years.

(B)

Continued validity

Such number shall be valid for each succeeding 3-year period if—

(i)

a return of the individual (or, if a dependent, on which the individual is included) is made for a taxable year in the preceding 3-year period, and

(ii)

each of the preceding 3-year periods beginning with the period in which such number was issued is a valid period under this paragraph.

(C)

Special rule for existing ITINs

In the case of an individual with an individual taxpayer identification number issued on or before the date of the enactment of this subsection, such number shall not be valid—

(i)

after the end of the 3-year period beginning on the date of the enactment of this subsection, and

(ii)

if a return of the individual (or, if a dependent, on which the individual is included) is not made for the first taxable year beginning after the date of the enactment of this subsection.

.

(b)

Interest

Section 6611 of such Code is amended by redesignating subsection (h) as subsection (i) and by inserting after subsection (g) the following new subsection:

(h)

Special rule relating to ITINs

Notwithstanding any other provision of this section, no interest shall be allowed or paid to or on behalf of a individual with respect to any overpayment until after 45 days after an individual taxpayer identification number is issued to the individual.

.

(c)

Audit by TIGTA

Not later than two years after the date of the enactment of this Act, and every two years thereafter, the Treasury Inspector General for Tax Administration shall conduct an audit of the program of the Internal Revenue Service for the issuance of individual taxpayer identification numbers pursuant to section 6109(i) of the Internal Revenue Code of 1986. The report required by this subsection shall be submitted to the Congress.

(d)

Effective date

(1)

Subsection (a)

The amendment made by subsection (a) shall apply to requests for individual taxpayer identification numbers made after the date of the enactment of this Act.

(2)

Subsection (b)

The amendment made by subsection (b) shall apply to returns due, claims filed, and refunds paid after the date of the enactment of this Act.