[104th Congress Public Law 168]
[From the U.S. Government Printing Office]
<DOC>
[DOCID: f:publ168.104]
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TAXPAYER BILL OF RIGHTS 2
[[Page 110 STAT. 1452]]
Public Law 104-168
104th Congress
An Act
To amend the Internal Revenue Code of 1986 to provide for increased
taxpayer protections. <<NOTE: July 30, 1996 - [H.R. 2337]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <<NOTE: Taxpayer Bill of
Rights 2.>>
SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE; TABLE OF CONTENTS.
(a) <<NOTE: 26 USC 1 note.>> Short Title.--This Act may be cited as
the ``Taxpayer Bill of Rights 2''.
(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.--
Sec. 1. Short title; amendment of 1986 Code; table of contents.
TITLE I--TAXPAYER ADVOCATE
Sec. 101. Establishment of position of Taxpayer Advocate within Internal
Revenue Service.
Sec. 102. Expansion of authority to issue Taxpayer Assistance Orders.
TITLE II--MODIFICATIONS TO INSTALLMENT AGREEMENT PROVISIONS
Sec. 201. Notification of reasons for termination of installment
agreements.
Sec. 202. Administrative review of termination of installment agreement.
TITLE III--ABATEMENT OF INTEREST AND PENALTIES
Sec. 301. Expansion of authority to abate interest.
Sec. 302. Review of IRS failure to abate interest.
Sec. 303. Extension of interest-free period for payment of tax after
notice and demand.
Sec. 304. Abatement of penalty for failure to make required deposits of
payroll taxes in certain cases.
TITLE IV--JOINT RETURNS
Sec. 401. Studies of joint return-related issues.
Sec. 402. Joint return may be made after separate returns without full
payment of tax.
Sec. 403. Disclosure of collection activities.
TITLE V--COLLECTION ACTIVITIES
Sec. 501. Modifications to lien and levy provisions.
Sec. 502. Modifications to certain levy exemption amounts.
Sec. 503. Offers-in-compromise.
TITLE VI--INFORMATION RETURNS
Sec. 601. Civil damages for fraudulent filing of information returns.
Sec. 602. Requirement to conduct reasonable investigations of
information returns.
[[Page 110 STAT. 1453]]
TITLE VII--AWARDING OF COSTS AND CERTAIN FEES
Sec. 701. United States must establish that its position in proceeding
was substantially justified.
Sec. 702. Increased limit on attorney fees.
Sec. 703. Failure to agree to extension not taken into account.
Sec. 704. Award of litigation costs permitted in declaratory judgment
proceedings.
TITLE VIII--MODIFICATION TO RECOVERY OF CIVIL DAMAGES FOR UNAUTHORIZED
COLLECTION ACTIONS
Sec. 801. Increase in limit on recovery of civil damages for
unauthorized collection actions.
Sec. 802. Court discretion to reduce award for litigation costs for
failure to exhaust administrative remedies.
TITLE IX--MODIFICATIONS TO PENALTY FOR FAILURE TO COLLECT AND PAY OVER
TAX
Sec. 901. Preliminary notice requirement.
Sec. 902. Disclosure of certain information where more than 1 person
liable for penalty for failure to collect and pay over tax.
Sec. 903. Right of contribution where more than 1 person liable for
penalty for failure to collect and pay over tax.
Sec. 904. Volunteer board members of tax-exempt organizations exempt
from penalty for failure to collect and pay over tax.
TITLE X--MODIFICATIONS OF RULES RELATING TO SUMMONSES
Sec. 1001. Enrolled agents included as third-party recordkeepers.
Sec. 1002. Safeguards relating to designated summonses.
Sec. 1003. Annual report to Congress concerning designated summonses.
TITLE XI--RELIEF FROM RETROACTIVE APPLICATION OF TREASURY DEPARTMENT
REGULATIONS
Sec. 1101. Relief from retroactive application of Treasury Department
regulations.
TITLE XII--MISCELLANEOUS PROVISIONS
Sec. 1201. Phone number of person providing payee statements required to
be shown on such statement.
Sec. 1202. Required notice of certain payments.
Sec. 1203. Unauthorized enticement of information disclosure.
Sec. 1204. Annual reminders to taxpayers with outstanding delinquent
accounts.
Sec. 1205. 5-year extension of authority for undercover operations.
Sec. 1206. Disclosure of Form 8300 information on cash transactions.
Sec. 1207. Disclosure of returns and return information to designee of
taxpayer.
Sec. 1208. Study of netting of interest on overpayments and liabilities.
Sec. 1209. Expenses of detection of underpayments and fraud, etc.
Sec. 1210. Use of private delivery services for timely-mailing-as-
timely-filing rule.
Sec. 1211. Reports on misconduct of IRS employees.
TITLE XIII--REVENUE OFFSETS
Subtitle A--Application of Failure-to-Pay Penalty to Substitute Returns
Sec. 1301. Application of failure-to-pay penalty to substitute returns.
Subtitle B--Excise Taxes on Amounts of Private Excess Benefits
Sec. 1311. Excise taxes for failure by certain charitable organizations
to meet certain qualification requirements.
Sec. 1312. Reporting of certain excise taxes and other information.
Sec. 1313. Exempt organizations required to provide copy of return.
Sec. 1314. Increase in penalties on exempt organizations for failure to
file complete and timely annual returns.
TITLE I--TAXPAYER ADVOCATE
SEC. 101. ESTABLISHMENT OF POSITION OF TAXPAYER ADVOCATE WITHIN INTERNAL
REVENUE SERVICE.
(a) General Rule.--Section 7802 (relating to Commissioner of
Internal Revenue; Assistant Commissioner (Employee Plans and
[[Page 110 STAT. 1454]]
Exempt Organizations)) is amended by adding at the end the following new
subsection:
``(d) <<NOTE: Establishment. Government organization.>> Office of
Taxpayer Advocate.--
``(1) In general.--There is established in the Internal
Revenue Service an office to be known as the `Office of the
Taxpayer Advocate'. Such office shall be under the supervision
and direction of an official to be known as the `Taxpayer
Advocate' who shall be appointed by and report directly to the
Commissioner of Internal Revenue. The Taxpayer Advocate shall be
entitled to compensation at the same rate as the highest level
official reporting directly to the Deputy Commissioner of the
Internal Revenue Service.
``(2) Functions of office.--
``(A) In general.--It shall be the function of the
Office of Taxpayer Advocate to--
``(i) assist taxpayers in resolving problems
with the Internal Revenue Service,
``(ii) identify areas in which taxpayers have
problems in dealings with the Internal Revenue
Service,
``(iii) to the extent possible, propose
changes in the administrative practices of the
Internal Revenue Service to mitigate problems
identified under clause (ii), and
``(iv) identify potential legislative changes
which may be appropriate to mitigate such
problems.
``(B) Annual reports.--
``(i) Objectives.--Not later than June 30 of
each calendar year after 1995, the Taxpayer
Advocate shall report to the Committee on Ways and
Means of the House of Representatives and the
Committee on Finance of the Senate on the
objectives of the Taxpayer Advocate for the fiscal
year beginning in such calendar year. Any such
report shall contain full and substantive
analysis, in addition to statistical information.
``(ii) Activities.--Not later than December 31
of each calendar year after 1995, the Taxpayer
Advocate shall report to the Committee on Ways and
Means of the House of Representatives and the
Committee on Finance of the Senate on the
activities of the Taxpayer Advocate during the
fiscal year ending during such calendar year. Any
such report shall contain full and substantive
analysis, in addition to statistical information,
and shall--
``(I) identify the initiatives the
Taxpayer Advocate has taken on improving
taxpayer services and Internal Revenue
Service responsiveness,
``(II) contain recommendations
received from individuals with the
authority to issue Taxpayer Assistance
Orders under section 7811,
``(III) contain a summary of at
least 20 of the most serious problems
encountered by taxpayers, including a description of the nature of such
problems,
``(IV) contain an inventory of the
items described in subclauses (I), (II),
and (III) for which action has been
taken and the result of such action,
[[Page 110 STAT. 1455]]
``(V) contain an inventory of the
items described in subclauses (I), (II),
and (III) for which action remains to be
completed and the period during which
each item has remained on such
inventory,
``(VI) contain an inventory of the
items described in subclauses (II) and
(III) for which no action has been
taken, the period during which each item
has remained on such inventory, the
reasons for the inaction, and identify
any Internal Revenue Service official
who is responsible for such inaction,
``(VII) identify any Taxpayer
Assistance Order which was not honored
by the Internal Revenue Service in a
timely manner, as specified under
section 7811(b),
``(VIII) contain recommendations for
such administrative and legislative
action as may be appropriate to resolve
problems encountered by taxpayers,
``(IX) describe the extent to which
regional problem resolution officers
participate in the selection and
evaluation of local problem resolution
officers, and
``(X) include such other information
as the Taxpayer Advocate may deem
advisable.
``(iii) Report to be submitted directly.--Each
report required under this subparagraph shall be
provided directly to the Committees referred to in
clauses (i) and (ii) without any prior review or
comment from the Commissioner, the Secretary of
the Treasury, any other officer or employee of the
Department of the Treasury, or the Office of
Management and Budget.
``(3) Responsibilities of commissioner.--The Commissioner of
Internal Revenue shall establish procedures requiring a formal
response to all recommendations submitted to the Commissioner by
the Taxpayer Advocate within 3 months after submission to the
Commissioner.''.
(b) Conforming Amendments.--
(1) Section 7811 (relating to Taxpayer Assistance Orders) is
amended--
(A) by striking ``the Office of Ombudsman'' in
subsection (a) and inserting ``the Office of the
Taxpayer Advocate'', and
(B) by striking ``Ombudsman'' each place it appears
(including in the headings of subsections (e) and (f))
and inserting ``Taxpayer Advocate''.
(2) The heading for section 7802 is amended to read as
follows:
[[Page 110 STAT. 1456]]
``SEC. 7802. COMMISSIONER OF INTERNAL REVENUE; ASSISTANT COMMISSIONERS;
TAXPAYER ADVOCATE.''.
(3) The table of sections for subchapter A of chapter 80 is
amended by striking the item relating to section 7802 and
inserting the following new item:
``Sec. 7802. Commissioner of Internal Revenue; Assistant Commissioners;
Taxpayer Advocate.''.
(c) <<NOTE: 26 USC 7802 note.>> Effective Date.--The amendments
made by this section shall take effect on the date of the enactment of
this Act.
SEC. 102. EXPANSION OF AUTHORITY TO ISSUE TAXPAYER ASSISTANCE ORDERS.
(a) Terms of Orders.--Subsection (b) of section 7811 (relating to
terms of Taxpayer Assistance Orders) is amended--
(1) by inserting ``within a specified time period'' after
``the Secretary'', and
(2) by inserting ``take any action as permitted by law,''
after ``cease any action,''.
(b) Limitation on Authority To Modify or Rescind.--Section 7811(c)
(relating to authority to modify or rescind) is amended to read as
follows:
``(c) Authority To Modify or Rescind.--Any Taxpayer Assistance Order
issued by the Taxpayer Advocate under this section may be modified or
rescinded--
``(1) only by the Taxpayer Advocate, the Commissioner of
Internal Revenue, or the Deputy Commissioner of Internal
Revenue, and
``(2) only if a written explanation of the reasons for the
modification or rescission is provided to the Taxpayer
Advocate.''.
(c) <<NOTE: 26 USC 7811 note.>> Effective Date.--The amendments
made by this section shall take effect on the date of the enactment of
this Act.
TITLE II--MODIFICATIONS TO INSTALLMENT AGREEMENT PROVISIONS
SEC. 201. NOTIFICATION OF REASONS FOR TERMINATION OF INSTALLMENT
AGREEMENTS.
(a) Terminations.--Subsection (b) of section 6159 (relating to
extent to which agreements remain in effect) is amended by adding at the
end the following new paragraph:
``(5) Notice requirements.--The Secretary may not take any
action under paragraph (2), (3), or (4) unless--
``(A) a notice of such action is provided to the
taxpayer not later than the day 30 days before the date
of such action, and
``(B) such notice includes an explanation why the
Secretary intends to take such action.
The preceding sentence shall not apply in any case in which the
Secretary believes that collection of any tax to which an
agreement under this section relates is in jeopardy.''.
(b) Conforming Amendment.--Paragraph (3) of section 6159(b) is
amended to read as follows:
``(3) Subsequent change in financial conditions.--If the
Secretary makes a determination that the financial condition
[[Page 110 STAT. 1457]]
of a taxpayer with whom the Secretary has entered into an
agreement under subsection (a) has significantly changed, the
Secretary may alter, modify, or terminate such agreement.''.
(c) <<NOTE: 26 USC 6159 note.>> Effective Date.--The amendments
made by this section shall take effect on the date 6 months after the
date of the enactment of this Act.
SEC. 202. ADMINISTRATIVE REVIEW OF TERMINATION OF INSTALLMENT AGREEMENT.
(a) General Rule.--Section 6159 (relating to agreements for payment
of tax liability in installments) is amended by adding at the end the
following new subsection:
``(c) Administrative Review.--The Secretary shall establish
procedures for an independent administrative review of terminations of
installment agreements under this section for taxpayers who request such
a review.''.
(b) <<NOTE: 26 USC 6159 note.>> Effective Date.--The amendment made
by subsection (a) shall take effect on January 1, 1997.
TITLE III--ABATEMENT OF INTEREST AND PENALTIES
SEC. 301. EXPANSION OF AUTHORITY TO ABATE INTEREST.
(a) General Rule.--Paragraph (1) of section 6404(e) (relating to
abatement of interest in certain cases) is amended--
(1) by inserting ``unreasonable'' before ``error'' each
place it appears in subparagraphs (A) and (B), and
(2) by striking ``in performing a ministerial act'' each
place it appears and inserting ``in performing a ministerial or
managerial act''.
(b) Clerical Amendment.--The subsection heading for subsection (e)
of section 6404 is amended--
(1) by striking ``Assessments'' and inserting ``Abatement'',
and
(2) by inserting ``Unreasonable'' before ``Errors''.
(c) <<NOTE: 26 USC 6404 note.>> Effective Date.--The amendments
made by this section shall apply to interest accruing with respect to
deficiencies or payments for taxable years beginning after the date of
the enactment of this Act.
SEC. 302. REVIEW OF IRS FAILURE TO ABATE INTEREST.
(a) In General.--Section 6404 is amended by adding at the end the
following new subsection:
``(g) Review of Denial of Request for Abatement of Interest.--
``(1) <<NOTE: Courts.>> In general.--The Tax Court shall
have jurisdiction over any action brought by a taxpayer who
meets the requirements referred to in section 7430(c)(4)(A)(iii)
to determine whether the Secretary's failure to abate interest
under this section was an abuse of discretion, and may order an
abatement, if such action is brought within 180 days after the
date of the mailing of the Secretary's final determination not
to abate such interest.
``(2) <<NOTE: Applicability.>> Special rules.--
[[Page 110 STAT. 1458]]
``(A) Date of mailing.--Rules similar to the rules
of section 6213 shall apply for purposes of determining
the date of the mailing referred to in paragraph (1).
``(B) Relief.--Rules similar to the rules of section
6512(b) shall apply for purposes of this subsection.
``(C) Review.--An order of the Tax Court under this
subsection shall be reviewable in the same manner as a
decision of the Tax Court, but only with respect to the
matters determined in such order.''.
(b) <<NOTE: 26 USC 6404 note.>> Effective Date.--The amendment made
by this section shall apply to requests for abatement after the date of
the enactment of this Act.
SEC. 303. EXTENSION OF INTEREST-FREE PERIOD FOR PAYMENT OF TAX AFTER
NOTICE AND DEMAND.
(a) General Rule.--Paragraph (3) of section 6601(e) (relating to
payments made within 10 days after notice and demand) is amended to read
as follows:
``(3) Payments made within specified period after notice and
demand.--If notice and demand is made for payment of any amount
and if such amount is paid within 21 calendar days (10 business
days if the amount for which such notice and demand is made
equals or exceeds $100,000) after the date of such notice and
demand, interest under this section on the amount so paid shall
not be imposed for the period after the date of such notice and
demand.''.
(b) Conforming Amendments.--
(1) Subparagraph (A) of section 6601(e)(2) is amended by
striking ``10 days from the date of notice and demand therefor''
and inserting ``21 calendar days from the date of notice and
demand therefor (10 business days if the amount for which such
notice and demand is made equals or exceeds $100,000)''.
(2) Paragraph (3) of section 6651(a) is amended by striking
``10 days of the date of the notice and demand therefor'' and
inserting ``21 calendar days from the date of notice and demand
therefor (10 business days if the amount for which such notice
and demand is made equals or exceeds $100,000)''.
(c) <<NOTE: 26 USC 6601 note.>> Effective Date.--The amendments
made by this section shall apply in the case of any notice and demand
given after December 31, 1996.
SEC. 304. ABATEMENT OF PENALTY FOR FAILURE TO MAKE REQUIRED DEPOSITS OF
PAYROLL TAXES IN CERTAIN CASES.
(a) In General.--Section 6656 (relating to failure to make deposit
of taxes) is amended by adding at the end the following new subsections:
``(c) Exception for First-Time Depositors of Employment Taxes.--The
Secretary may waive the penalty imposed by subsection (a) on a person's
inadvertent failure to deposit any employment tax if--
``(1) such person meets the requirements referred to in
section 7430(c)(4)(A)(iii),
``(2) such failure occurs during the 1st quarter that such
person was required to deposit any employment tax, and
``(3) the return of such tax was filed on or before the due
date.
For purposes of this subsection, the term `employment taxes' means the
taxes imposed by subtitle C.
[[Page 110 STAT. 1459]]
``(d) Authority To Abate Penalty Where Deposit Sent to Secretary.--
The Secretary may abate the penalty imposed by subsection (a) with
respect to the first time a depositor is required to make a deposit if
the amount required to be deposited is inadvertently sent to the
Secretary instead of to the appropriate government depository.''.
(b) <<NOTE: 26 USC 6656 note.>> Effective Date.--The amendment made
by subsection (a) shall apply to deposits required to be made after the
date of the enactment of this Act.
TITLE IV--JOINT RETURNS
SEC. 401. STUDIES OF JOINT RETURN-RELATED ISSUES.
The Secretary of the Treasury or his delegate and the Comptroller
General of the United States shall each conduct separate studies of--
(1) the effects of changing the liability for tax on a joint
return from being joint and several to being proportionate to
the tax attributable to each spouse,
(2) the effects of providing that, if a divorce decree
allocates liability for tax on a joint return filed before the
divorce, the Secretary may collect such liability only in
accordance with the decree,
(3) whether those provisions of the Internal Revenue Code of
1986 intended to provide relief to innocent spouses provide
meaningful relief in all cases where such relief is appropriate,
and
(4) the effect of providing that community income (as
defined in section 66(d) of such Code) which, in accordance with
the rules contained in section 879(a) of such Code, would be
treated as the income of one spouse is exempt from a levy for
failure to pay any tax imposed by subtitle A by the other spouse
for a taxable year ending before their marriage.
<<NOTE: Reports.>> The reports of such studies shall be submitted to the
Committee on Ways and Means of the House of Representatives and the
Committee on Finance of the Senate within 6 months after the date of the
enactment of this Act.
SEC. 402. JOINT RETURN MAY BE MADE AFTER SEPARATE RETURNS WITHOUT FULL
PAYMENT OF TAX.
(a) General Rule.--Paragraph (2) of section 6013(b) (relating to
limitations on filing of joint return after filing separate returns) is
amended by striking subparagraph (A) and redesignating the following
subparagraphs accordingly.
(b) <<NOTE: 26 USC 6013 note.>> Effective Date.--The amendment made
by subsection (a) shall apply to taxable years beginning after the date
of the enactment of this Act.
SEC. 403. DISCLOSURE OF COLLECTION ACTIVITIES.
(a) In General.--Subsection (e) of section 6103 (relating to
disclosure to persons having material interest) is amended by adding at
the end the following new paragraph:
``(8) Disclosure of collection activities with respect to
joint return.--If any deficiency of tax with respect to a joint
return is assessed and the individuals filing such return are no
longer married or no longer reside in the same household, upon
request in writing by either of such individuals,
[[Page 110 STAT. 1460]]
the Secretary shall disclose in writing to the individual making
the request whether the Secretary has attempted to collect such
deficiency from such other individual, the general nature of
such collection activities, and the amount collected. The
preceding sentence shall not apply to any deficiency which may
not be collected by reason of section 6502.''.
(b) <<NOTE: 26 USC 6103 note.>> Effective Date.--The amendment made
by this section shall apply to requests made after the date of the
enactment of this Act.
TITLE V--COLLECTION ACTIVITIES
SEC. 501. MODIFICATIONS TO LIEN AND LEVY PROVISIONS.
(a) Withdrawal of Certain Notices.--Section 6323 (relating to
validity and priority against certain persons) is amended by adding at
the end the following new subsection:
``(j) Withdrawal of Notice in Certain Circumstances.--
``(1) In general.--The Secretary may withdraw a notice of a
lien filed under this section and this chapter shall be applied
as if the withdrawn notice had not been filed, if the Secretary
determines that--
``(A) the filing of such notice was premature or
otherwise not in accordance with administrative
procedures of the Secretary,
``(B) the taxpayer has entered into an agreement
under section 6159 to satisfy the tax liability for
which the lien was imposed by means of installment
payments, unless such agreement provides otherwise,
``(C) the withdrawal of such notice will facilitate
the collection of the tax liability, or
``(D) with the consent of the taxpayer or the
Taxpayer Advocate, the withdrawal of such notice would
be in the best interests of the taxpayer (as determined
by the Taxpayer Advocate) and the United States.
Any such withdrawal shall be made by filing notice at the same
office as the withdrawn notice. A copy of such notice of
withdrawal shall be provided to the taxpayer.
``(2) Notice to credit agencies, etc.--Upon written request
by the taxpayer with respect to whom a notice of a lien was
withdrawn under paragraph (1), the Secretary shall promptly make
reasonable efforts to notify credit reporting agencies, and any
financial institution or creditor whose name and address is
specified in such request, of the withdrawal of such notice. Any
such request shall be in such form as the Secretary may
prescribe.''.
(b) Return of Levied Property in Certain Cases.--Section 6343
(relating to authority to release levy and return property) is amended
by adding at the end the following new subsection:
``(d) Return of Property in Certain Cases.--If--
``(1) any property has been levied upon, and
``(2) the Secretary determines that--
``(A) the levy on such property was premature or
otherwise not in accordance with administrative
procedures of the Secretary,
``(B) the taxpayer has entered into an agreement
under section 6159 to satisfy the tax liability for
which the levy
[[Page 110 STAT. 1461]]
was imposed by means of installment payments, unless
such agreement provides otherwise,
``(C) the return of such property will facilitate
the collection of the tax liability, or
``(D) with the consent of the taxpayer or the
Taxpayer Advocate, the return of such property would be
in the best interests of the taxpayer (as determined by
the Taxpayer Advocate) and the United States,
the provisions of subsection (b) shall apply in the same manner as if
such property had been wrongly levied upon, except that no interest
shall be allowed under subsection (c).''.
(d) <<NOTE: 26 USC 6323 note.>> Effective Date.--The amendments
made by this section shall take effect on the date of the enactment of
this Act.
SEC. 502. MODIFICATIONS TO CERTAIN LEVY EXEMPTION AMOUNTS.
(a) Fuel, Etc.--Paragraph (2) of section 6334(a) (relating to fuel,
provisions, furniture, and personal effects exempt from levy) is
amended--
(1) by striking ``If the taxpayer is the head of a family,
so'' and inserting ``So'',
(2) by striking ``his household'' and inserting ``the
taxpayer's household'', and
(3) by striking ``$1,650 ($1,550 in the case of levies
issued during 1989)'' and inserting ``$2,500''.
(b) Books, Etc.--Paragraph (3) of section 6334(a) (relating to books
and tools of a trade, business, or profession) is amended by striking
``$1,100 ($1,050 in the case of levies issued during 1989)'' and
inserting ``$1,250''.
(c) Inflation Adjustment.--Section 6334 (relating to property exempt
from levy) is amended by adding at the end the following new subsection:
``(f) Inflation Adjustment.--
``(1) In general.--In the case of any calendar year
beginning after 1997, each dollar amount referred to in
paragraphs (2) and (3) of subsection (a) shall be increased by
an amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined under
section 1(f)(3) for such calendar year, by substituting
`calendar year 1996' for `calendar year 1992' in
subparagraph (B) thereof.
``(2) Rounding.--If any dollar amount after being increased
under paragraph (1) is not a multiple of $10, such dollar amount
shall be rounded to the nearest multiple of $10.''.
(d) <<NOTE: 26 USC 6334 note.>> Effective Date.--The amendments
made by this section shall take effect with respect to levies issued
after December 31, 1996.
SEC. 503. OFFERS-IN-COMPROMISE.
(a) Review Requirements.--Subsection (b) of section 7122 (relating
to records) is amended by striking ``$500.'' and inserting ``$50,000.
However, such compromise shall be subject to continuing quality review
by the Secretary.''.
(b) <<NOTE: 26 USC 7122 note.>> Effective Date.--The amendment made
by this section shall take effect on the date of the enactment of this
Act.
[[Page 110 STAT. 1462]]
TITLE VI--INFORMATION RETURNS
SEC. 601. CIVIL DAMAGES FOR FRAUDULENT FILING OF INFORMATION RETURNS.
(a) General Rule.--Subchapter B of chapter 76 (relating to
proceedings by taxpayers and third parties) is
amended by redesignating section 7434 as section 7435 and by inserting
after section 7433 the following new section:
``SEC. 7434. CIVIL DAMAGES FOR FRAUDULENT FILING OF INFORMATION RETURNS.
``(a) In General.--If any person willfully files a fraudulent
information return with respect to payments purported to be made to any
other person, such other person may bring a civil action for damages
against the person so filing such return.
``(b) Damages.--In any action brought under subsection (a), upon a
finding of liability on the part of the defendant, the defendant shall
be liable to the plaintiff in an amount equal to the greater of $5,000
or the sum of--
``(1) any actual damages sustained by the plaintiff as a
proximate result of the filing of the fraudulent information
return (including any costs attributable to resolving
deficiencies asserted as a result of such filing),
``(2) the costs of the action, and
``(3) in the court's discretion, reasonable attorneys fees.
``(c) Period for Bringing Action.--Notwithstanding any other
provision of law, an action to enforce the liability created under this
section may be brought without regard to the amount in controversy and
may be brought only within the later of--
``(1) 6 years after the date of the filing of the fraudulent
information return, or
``(2) 1 year after the date such fraudulent information
return would have been discovered by exercise of reasonable
care.
``(d) Copy of Complaint Filed With IRS--Any person bringing an
action under subsection (a) shall provide a copy of the complaint to the
Internal Revenue Service upon the filing of such complaint with the
court.
``(e) Finding of Court To Include Correct Amount of Payment.--The
decision of the court awarding damages in an action brought under
subsection (a) shall include a finding of the correct amount which
should have been reported in the information return.
``(f) Information Return.--For purposes of this section, the term
`information return' means any statement described in section
6724(d)(1)(A).''.
(b) Clerical Amendment.--The table of sections for subchapter B of
chapter 76 is amended by striking the item relating to section 7434 and
inserting the following:
``Sec. 7434. Civil damages for fraudulent filing of information returns.
``Sec. 7435. Cross references.''.
(c) <<NOTE: 26 USC 7434 note.>> Effective Date.--The amendments
made by this section shall apply to fraudulent information returns filed
after the date of the enactment of this Act.
[[Page 110 STAT. 1463]]
SEC. 602. REQUIREMENT TO CONDUCT REASONABLE INVESTIGATIONS OF
INFORMATION RETURNS.
(a) General Rule.--Section 6201 (relating to assessment authority)
is amended by redesignating subsection (d) as subsection (e) and by
inserting after subsection (c) the following new subsection:
``(d) Required Reasonable Verification of Information Returns.--In
any court proceeding, if a taxpayer asserts a reasonable dispute with
respect to any item of income reported on an information return filed
with the Secretary under subpart B or C of part III of subchapter A of
chapter 61 by a third party and the taxpayer has fully cooperated with
the Secretary (including providing, within a reasonable period of time,
access to and inspection of all witnesses, information, and documents
within the control of the taxpayer as reasonably requested by the
Secretary), the Secretary shall have the burden of producing reasonable
and probative information concerning such deficiency in addition to such
information return.''.
(b) <<NOTE: 26 USC 6201 note.>> Effective Date.--The amendment made
by subsection (a) shall take effect on the date of the enactment of this
Act.
TITLE VII--AWARDING OF COSTS AND CERTAIN FEES
SEC. 701. UNITED STATES MUST ESTABLISH THAT ITS POSITION IN PROCEEDING
WAS SUBSTANTIALLY JUSTIFIED.
(a) General Rule.--Subparagraph (A) of section 7430(c)(4) (defining
prevailing party) is amended by striking clause (i) and by redesignating
clauses (ii) and (iii) as clauses (i) and (ii), respectively.
(b) Burden of Proof on United States.--Paragraph (4) of section
7430(c) is amended by redesignating subparagraph (B) as subparagraph (C)
and by inserting after subparagraph (A) the following new subparagraph:
``(B) Exception if united states establishes that
its position was substantially justified.--
``(i) General rule.--A party shall not be
treated as the prevailing party in a proceeding to
which subsection (a) applies if the United States
establishes that the position of the United States
in the proceeding was substantially justified.
``(ii) Presumption of no justification if
internal revenue service did not follow certain
published guidance.--For purposes of clause (i),
the position of the United States shall be
presumed not to be substantially justified if the
Internal Revenue Service did not follow its
applicable published guidance in the
administrative proceeding. Such presumption may be
rebutted.
``(iii) Applicable published guidance.--For
purposes of clause (ii), the term `applicable
published guidance' means--
``(I) regulations, revenue rulings,
revenue procedures, information
releases, notices, and announcements,
and
[[Page 110 STAT. 1464]]
``(II) any of the following which
are issued to the taxpayer: private
letter rulings, technical advice
memoranda, and determination letters.''.
(c) Conforming Amendments.--
(1) Subparagraph (B) of section 7430(c)(2) is amended by
striking ``paragraph (4)(B)'' and inserting ``paragraph
(4)(C)''.
(2) Subparagraph (C) of section 7430(c)(4), as redesignated
by subsection (b), is amended by striking ``subparagraph (A)''
and inserting ``this paragraph''.
(3) Sections 6404(g) and 6656(c)(1), as amended by this Act,
are each amended by striking ``section 7430(c)(4)(A)(iii)'' and
inserting ``section 7430(c)(4)(A)(ii)''.
(d) <<NOTE: 26 USC 6404 note.>> Effective Date.--The amendments
made by this section shall apply in the case of proceedings commenced
after the date of the enactment of this Act.
SEC. 702. INCREASED LIMIT ON ATTORNEY FEES.
(a) In General.--Paragraph (1) of section 7430(c) (defining
reasonable litigation costs) is amended--
(1) by striking ``$75'' in clause (iii) of subparagraph (B)
and inserting ``$110'',
(2) by striking ``an increase in the cost of living or'' in
clause (iii) of subparagraph (B), and
(3) by adding after clause (iii) the following:
``In the case of any calendar year beginning after 1996, the
dollar amount referred to in clause (iii) shall be increased by
an amount equal to such dollar amount multiplied by the cost-of-
living adjustment determined under section 1(f)(3) for such
calendar year, by substituting `calendar year 1995' for
`calendar year 1992' in subparagraph (B) thereof. If any dollar
amount after being increased under the preceding sentence is not
a multiple of $10, such dollar amount shall be rounded to the
nearest multiple of $10.''.
(b) <<NOTE: 26 USC 7430 note.>> Effective Date.--The amendment made
by this section shall apply in the case of proceedings commenced after
the date of the enactment of this Act.
SEC. 703. FAILURE TO AGREE TO EXTENSION NOT TAKEN INTO ACCOUNT.
(a) In General.--Paragraph (1) of section 7430(b) (relating to
requirement that administrative remedies be exhausted) is amended by
adding at the end the following new sentence: ``Any failure to agree to
an extension of the time for the assessment of any tax shall not be
taken into account for purposes of determining whether the prevailing
party meets the requirements of the preceding sentence.''.
(b) <<NOTE: 26 USC 7430 note.>> Effective Date.--The amendment made
by this section shall apply in the case of proceedings commenced after
the date of the enactment of this Act.
SEC. 704. AWARD OF LITIGATION COSTS PERMITTED IN DECLARATORY JUDGMENT
PROCEEDINGS.
(a) In General.--Subsection (b) of section 7430 is amended by
striking paragraph (3) and by redesignating paragraph (4) as paragraph
(3).
(b) <<NOTE: 26 USC 7430 note.>> Effective Date.--The amendment made
by this section shall apply in the case of proceedings commenced after
the date of the enactment of this Act.
[[Page 110 STAT. 1465]]
TITLE VIII--MODIFICATION TO RECOVERY OF CIVIL DAMAGES FOR UNAUTHORIZED
COLLECTION ACTIONS
SEC. 801. INCREASE IN LIMIT ON RECOVERY OF CIVIL DAMAGES FOR
UNAUTHORIZED COLLECTION ACTIONS.
(a) General Rule.--Subsection (b) of section 7433 (relating to
damages) is amended by striking ``$100,000'' and inserting
``$1,000,000''.
(b) <<NOTE: 26 USC 7433 note.>> Effective Date.--The amendment made
by subsection (a) shall apply to actions by officers or employees of the
Internal Revenue Service after the date of the enactment of this Act.
SEC. 802. COURT DISCRETION TO REDUCE AWARD FOR LITIGATION COSTS FOR
FAILURE TO EXHAUST ADMINISTRATIVE REMEDIES.
(a) General Rule.--Paragraph (1) of section 7433(d) (relating to
civil damages for certain unauthorized collection actions) is amended to
read as follows:
``(1) Award for damages may be reduced if administrative
remedies not exhausted.--The amount of damages awarded under
subsection (b) may be reduced if the court determines that the
plaintiff has not exhausted the administrative remedies
available to such plaintiff within the Internal Revenue
Service.''.
(b) <<NOTE: 26 USC 7433 note.>> Effective Date.--The amendment made
by this section shall apply in the case of proceedings commenced after
the date of the enactment of this Act.
TITLE IX--MODIFICATIONS TO PENALTY FOR FAILURE TO COLLECT AND PAY OVER
TAX
SEC. 901. PRELIMINARY NOTICE REQUIREMENT.
(a) In General.--Section 6672 (relating to failure to collect and
pay over tax, or attempt to evade or defeat tax) is amended by
redesignating subsection (b) as subsection (c) and by inserting after
subsection (a) the following new subsection:
``(b) Preliminary Notice Requirement.--
``(1) In general.--No penalty shall be imposed under
subsection (a) unless the Secretary notifies the taxpayer in
writing by mail to an address as determined under section
6212(b) that the taxpayer shall be subject to an assessment of
such penalty.
``(2) Timing of notice.--The mailing of the notice described
in paragraph (1) shall precede any notice and demand of any
penalty under subsection (a) by at least 60 days.
``(3) Statute of limitations.--If a notice described in
paragraph (1) with respect to any penalty is mailed before the
expiration of the period provided by section 6501 for the
assessment of such penalty (determined without regard to this
paragraph), the period provided by such section for the
assessment of such penalty shall not expire before the later
of--
[[Page 110 STAT. 1466]]
``(A) the date 90 days after the date on which such
notice was mailed, or
``(B) if there is a timely protest of the proposed
assessment, the date 30 days after the Secretary makes a
final administrative determination with respect to such
protest.
``(4) Exception for jeopardy.--This subsection shall not
apply if the Secretary finds that the collection of the penalty
is in jeopardy.''.
(b) <<NOTE: 26 USC 6672 note.>> Effective Date.--The amendment made
by subsection (a) shall apply to proposed assessments made after June
30, 1996.
SEC. 902. DISCLOSURE OF CERTAIN INFORMATION WHERE MORE THAN 1 PERSON
LIABLE FOR PENALTY FOR FAILURE TO COLLECT AND PAY OVER TAX.
(a) In General.--Subsection (e) of section 6103 (relating to
disclosure to persons having material interest), as amended by section
403, is
amended by adding at the end the following new paragraph:
``(9) Disclosure of certain information where more than 1
person subject to penalty under section 6672.--If the Secretary
determines that a person is liable for a penalty under section
6672(a) with respect to any failure, upon request in writing of
such person, the Secretary shall disclose in writing to such
person--
``(A) the name of any other person whom the
Secretary has determined to be liable for such penalty
with respect to such failure, and
``(B) whether the Secretary has attempted to collect
such penalty from such other person, the general nature
of such collection activities, and the amount
collected.''.
(b) <<NOTE: 26 USC 6103 note.>> Effective Date.--The amendment made
by subsection (a) shall take effect on the date of the enactment of this
Act.
SEC. 903. RIGHT OF CONTRIBUTION WHERE MORE THAN 1 PERSON LIABLE FOR
PENALTY FOR FAILURE TO COLLECT AND PAY OVER TAX.
(a) In General.--Section 6672 (relating to failure to collect and
pay over tax, or attempt to evade or defeat tax) is amended by adding at
the end the following new subsection:
``(d) Right of Contribution Where More Than 1 Person Liable for
Penalty.--If more than 1 person is liable for the penalty under
subsection (a) with respect to any tax, each person who paid such
penalty shall be entitled to recover from other persons who are liable
for such penalty an amount equal to the excess of the amount paid by
such person over such person's proportionate share of the penalty. Any
claim for such a recovery may be made only in a proceeding which is
separate from, and is not joined or consolidated with--
``(1) an action for collection of such penalty brought by
the United States, or
``(2) a proceeding in which the United States files a
counterclaim or third-party complaint for the collection of such
penalty.''.
(b) <<NOTE: 26 USC 6672 note.>> Effective Date.--The amendment made
by subsection (a) shall apply to penalties assessed after the date of
the enactment of this Act.
[[Page 110 STAT. 1467]]
SEC. 904. VOLUNTEER BOARD MEMBERS OF TAX-EXEMPT ORGANIZATIONS EXEMPT
FROM PENALTY FOR FAILURE TO COLLECT AND PAY OVER TAX.
(a) In General.--Section 6672 is amended by adding at the end the
following new subsection:
``(e) Exception for Voluntary Board Members of Tax-Exempt
Organizations.--No penalty shall be imposed by subsection (a) on any
unpaid, volunteer member of any board of trustees or directors of an
organization exempt from tax under subtitle A if such member--
``(1) is solely serving in an honorary capacity,
``(2) does not participate in the day-to-day or financial
operations of the organization, and
``(3) does not have actual knowledge of the failure on which
such penalty is imposed.
The preceding sentence shall not apply if it results in no person being
liable for the penalty imposed by subsection (a).''.
(b) <<NOTE: 26 USC 6672 note.>> Public Information Requirements.--
(1) In general.--The Secretary of the Treasury or the
Secretary's delegate (hereafter in this subsection referred to
as the ``Secretary'') shall take such actions as may be
appropriate to ensure that employees are aware of their
responsibilities under the Federal tax depository system, the
circumstances under which employees may be liable for the
penalty imposed by section 6672 of the Internal Revenue Code of
1986, and the responsibility to promptly report to the Internal
Revenue Service any failure referred to in subsection (a) of
such section 6672. Such actions shall include--
(A) printing of a warning on deposit coupon booklets
and the appropriate tax returns that certain employees
may be liable for the penalty imposed by such section
6672, and
(B) the development of a special information packet.
(2) Development of explanatory materials.--The Secretary
shall develop materials explaining the circumstances under which
board members of tax-exempt organizations (including voluntary
and honorary members) may be subject to penalty under section
6672 of such Code. Such materials shall be made available to
tax-exempt organizations.
(3) IRS instructions.--The Secretary shall clarify the
instructions to Internal Revenue Service employees on the
application of the penalty under section 6672 of such Code with
regard to voluntary members of boards of trustees or directors
of tax-exempt organizations.
TITLE X--MODIFICATIONS OF RULES RELATING TO SUMMONSES
SEC. 1001. ENROLLED AGENTS INCLUDED AS THIRD-PARTY RECORDKEEPERS.
(a) In General.--Paragraph (3) of section 7609(a) (relating to
third-party recordkeeper defined) is amended by striking ``and'' at the
end of subparagraph (G), by striking the period at the end of
subparagraph (H) and inserting ``; and'', and by adding at the end the
following the subparagraph:
[[Page 110 STAT. 1468]]
``(I) any enrolled agent.''.
(b) <<NOTE: 26 USC 7609 note.>> Effective Date.--The amendment made
by subsection (a) shall apply to summonses issued after the date of the
enactment of this Act.
SEC. 1002. SAFEGUARDS RELATING TO DESIGNATED SUMMONSES.
(a) Standard of Review.--Subparagraph (A) of section 6503(k)(2)
(defining designated summons) is amended by redesignating clauses (i)
and (ii) as clauses (ii) and (iii), respectively, and by inserting
before clause (ii) (as so redesignated) the following new clause:
``(i) the issuance of such summons is preceded
by a review of such issuance by the regional
counsel of the Office of Chief Counsel for the
region in which the examination of the corporation
is being conducted,''.
(b) Limitation on Persons to Whom Designated Summons May Be
Issued.--Paragraph (1) of section 6503(k) is amended by striking ``with
respect to any return of tax by a corporation'' and inserting ``to a
corporation (or to any other person to whom the corporation has
transferred records) with respect to any return of tax by such
corporation for a taxable year (or other period) for which such
corporation is being examined under the coordinated examination program
(or any successor program) of the Internal Revenue Service''.
(c) Clerical Amendment.--Section 6503 is amended by redesignating
subsections (k) and (l) (as amended by this section) as subsections (j)
and (k), respectively.
(d) <<NOTE: 26 USC 6503 note.>> Effective Date.--The amendments
made by this section shall apply to summonses issued after the date of
the enactment of this Act.
SEC. 1003. <<NOTE: 26 USC 6503 note.>> ANNUAL REPORT TO CONGRESS
CONCERNING DESIGNATED SUMMONSES.
Not later than December 31 of each calendar year after 1995, the
Secretary of the Treasury or his delegate shall report to the Committee
on Ways and Means of the House of Representatives and the Committee on
Finance of the Senate on the number of designated summonses (as defined
in section 6503(j) of the Internal Revenue Code of 1986) which were
issued during the preceding 12 months.
TITLE XI--RELIEF FROM RETROACTIVE APPLICATION OF TREASURY DEPARTMENT
REGULATIONS
SEC. 1101. RELIEF FROM RETROACTIVE APPLICATION OF TREASURY DEPARTMENT
REGULATIONS.
(a) In General.--Subsection (b) of section 7805 (relating to rules
and regulations) is amended to read as follows:
``(b) Retroactivity of Regulations.--
``(1) In general.--Except as otherwise provided in this
subsection, no temporary, proposed, or final regulation relating
to the internal revenue laws shall apply to any taxable period
ending before the earliest of the following dates:
[[Page 110 STAT. 1469]]
``(A) The date on which such regulation is filed
with the Federal Register.
``(B) In the case of any final regulation, the date
on which any proposed or temporary regulation to which
such final regulation relates was filed with the Federal
Register.
``(C) The date on which any notice substantially
describing the expected contents of any
temporary, proposed, or final regulation is issued to the public.
``(2) Exception for promptly issued regulations.--Paragraph
(1) shall not apply to regulations filed or issued within 18
months of the date of the enactment of the statutory provision
to which the regulation relates.
``(3) Prevention of abuse.--The Secretary may provide that
any regulation may take effect or apply retroactively to prevent
abuse.
``(4) Correction of procedural defects.--The Secretary may
provide that any regulation may apply retroactively to correct a
procedural defect in the issuance of any prior regulation.
``(5) Internal regulations.--The limitation of paragraph (1)
shall not apply to any regulation relating to internal Treasury
Department policies, practices, or procedures.
``(6) Congressional authorization.--The limitation of
paragraph (1) may be superseded by a legislative grant from
Congress authorizing the Secretary to prescribe the effective
date with respect to any regulation.
``(7) Election to apply retroactively.--The Secretary may
provide for any taxpayer to elect to apply any regulation before
the dates specified in paragraph (1).
``(8) Application to rulings.--The Secretary may prescribe
the extent, if any, to which any ruling (including any judicial
decision or any administrative determination other than by
regulation) relating to the internal revenue laws shall be
applied without retroactive effect.''.
(b) <<NOTE: 26 USC 7805 note.>> Effective Date.--The amendment made
by subsection (a) shall apply with respect to regulations which relate
to statutory provisions enacted on or after the date of the enactment of
this Act.
TITLE XII--MISCELLANEOUS PROVISIONS
SEC. 1201. PHONE NUMBER OF PERSON PROVIDING PAYEE STATEMENTS REQUIRED TO
BE SHOWN ON SUCH STATEMENT.
(a) General Rule.--The following provisions are each amended by
striking ``name and address'' and inserting ``name, address, and phone
number of the information contact'':
(1) Section 6041(d)(1).
(2) Section 6041A(e)(1).
(3) Section 6042(c)(1).
(4) Section 6044(e)(1).
(5) Section 6045(b)(1).
(6) Section 6049(c)(1)(A).
(7) Section 6050B(b)(1).
(8) Section 6050H(d)(1).
(9) Section 6050I(e)(1).
[[Page 110 STAT. 1470]]
(10) Section 6050J(e).
(11) Section 6050K(b)(1).
(12) Section 6050N(b)(1).
(b) <<NOTE: 26 USC 6041 note.>> Effective Date.--The amendments
made by subsection (a) shall apply to statements required to be
furnished after December 31, 1996 (determined without regard to any
extension).
SEC. 1202. <<NOTE: 26 USC 6311 note.>> REQUIRED NOTICE OF CERTAIN
PAYMENTS.
If any payment is received by the Secretary of the Treasury or his
delegate from any taxpayer and the Secretary cannot associate such
payment with such taxpayer, the Secretary shall make reasonable efforts
to notify the taxpayer of such inability within 60 days after the
receipt of such payment.
SEC. 1203. UNAUTHORIZED ENTICEMENT OF INFORMATION DISCLOSURE.
(a) In General.--Subchapter B of chapter 76 (relating to proceedings
by taxpayers and third parties), as amended by section 601(a), is
amended by redesignating section 7435 as section 7436 and by inserting
after section 7434 the following new section:
``SEC. 7435. CIVIL DAMAGES FOR UNAUTHORIZED ENTICEMENT OF INFORMATION
DISCLOSURE.
``(a) In General.--If any officer or employee of the United States
intentionally compromises the determination or collection of any tax due
from an attorney, certified public accountant, or enrolled agent
representing a taxpayer in exchange for information conveyed by the
taxpayer to the attorney, certified public accountant, or enrolled agent
for purposes of obtaining advice concerning the taxpayer's tax
liability, such taxpayer may bring a civil action for damages against
the United States in a district court of the United States. Such civil
action shall be the exclusive remedy for recovering damages resulting
from such actions.
``(b) Damages.--In any action brought under subsection (a), upon a
finding of liability on the part of the defendant, the defendant shall
be liable to the plaintiff in an amount equal to the lesser of $500,000
or the sum of--
``(1) actual, direct economic damages sustained by the
plaintiff as a proximate result of the information disclosure,
and
``(2) the costs of the action.
Damages shall not include the taxpayer's liability for any civil or
criminal penalties, or other losses attributable to incarceration or the
imposition of other criminal sanctions.
``(c) Payment Authority.--Claims pursuant to this section shall be
payable out of funds appropriated under section 1304 of title 31, United
States Code.
``(d) Period for Bringing Action.--Notwithstanding any other
provision of law, an action to enforce liability created under this
section may be brought without regard to the amount in controversy and
may be brought only within 2 years after the date the actions creating
such liability would have been discovered by exercise of reasonable
care.
``(e) Mandatory Stay.--Upon a certification by the Commissioner or
the Commissioner's delegate that there is an ongoing investigation or
prosecution of the taxpayer, the district court before which an action
under this section is pending shall stay all proceedings with respect to
such action pending the conclusion of the investigation or prosecution.
[[Page 110 STAT. 1471]]
``(f) Crime-Fraud Exception.--Subsection (a) shall not apply to
information conveyed to an attorney, certified public accountant, or
enrolled agent for the purpose of perpetrating a fraud or crime.''.
(b) Clerical Amendment.--The table of sections for subchapter B of
chapter 76, as amended by section 601(b), is amended by striking the
item relating to section 7435 and by adding at the end the following new
items:
``Sec. 7435. Civil damages for unauthorized enticement of information
disclosure.
``Sec. 7436. Cross references.''.
(c) <<NOTE: 26 USC 7435 note.>> Effective Date.--The amendments
made by this section shall apply to actions after the date of the
enactment of this Act.
SEC. 1204. ANNUAL REMINDERS TO TAXPAYERS WITH OUTSTANDING DELINQUENT
ACCOUNTS.
(a) In General.--Chapter 77 (relating to miscellaneous provisions)
is amended by adding at the end the following new section:
``SEC. 7524. ANNUAL NOTICE OF TAX DELINQUENCY.
``Not less often than annually, the Secretary shall send a written
notice to each taxpayer who has a tax delinquent account of the amount
of the tax delinquency as of the date of the notice.''.
(b) Clerical Amendment.--The table of sections for chapter 77 is
amended by adding at the end the following new item:
``Sec. 7524. Annual notice of tax delinquency.''.
(c) <<NOTE: 26 USC 7524 note.>> Effective Date.--The amendments
made by this section shall apply to calendar years after 1996.
SEC. 1205. 5-YEAR EXTENSION OF AUTHORITY FOR UNDERCOVER OPERATIONS.
(a) In General.--Paragraph (3) of section 7601(c) of the Anti-Drug
Abuse Act of 1988 is amended by striking all that follows ``this Act''
and inserting a period.
(b) Restoration of Authority for 5 Years.--Subsection (c) of section
7608 is amended by adding at the end the following new paragraph:
``(6) Application of section.--The provisions of this
subsection--
``(A) shall apply after November 17, 1988, and
before January 1, 1990, and
``(B) shall apply after the date of the enactment of
this paragraph and before January 1, 2001.
All amounts expended pursuant to this subsection during the
period described in subparagraph (B) shall be recovered to the
extent possible, and deposited in the Treasury of the United
States as miscellaneous receipts, before January 1, 2001.''.
(c) Enhanced Oversight.--
(1) Additional information required in reports to
congress.--Subparagraph (B) of section 7608(c)(4) is amended--
(A) by striking ``preceding the period'' in clause
(ii),
(B) by striking ``and'' at the end of clause (ii),
and
(C) by striking clause (iii) and inserting the
following:
``(iii) the number, by programs, of undercover
investigative operations closed in the 1-year
period for which such report is submitted, and
``(iv) the following information with respect
to each undercover investigative operation pending
as of the
[[Page 110 STAT. 1472]]
end of the 1-year period for which such report is
submitted or closed during such 1-year period--
``(I) the date the operation began
and the date of the certification
referred to in the last sentence of
paragraph (1),
``(II) the total expenditures under
the operation and the amount and use of
the proceeds from the operation,
``(III) a detailed description of
the operation including the potential
violation being investigated and whether
the operation is being conducted under
grand jury auspices, and
``(IV) the results of the operation
including the results of criminal
proceedings.''.
(2) Audits required without regard to amounts involved.--
Subparagraph (C) of section 7608(c)(5) is amended to read as
follows:
``(C) Undercover investigative operation.--The term
`undercover investigative operation' means any
undercover investigative operation of the Service;
except that, for purposes of subparagraphs (A) and (C)
of paragraph (4), such term only includes an operation
which is exempt from section 3302 or 9102 of title 31,
United States Code.''.
(3) <<NOTE: 26 USC 7608 note.>> Effective date.--The
amendments made by this subsection shall take effect on the date
of the enactment of this Act.
SEC. 1206. DISCLOSURE OF FORM 8300 INFORMATION ON CASH TRANSACTIONS.
(a) In General.--Subsection (l) of section 6103 (relating to
disclosure of returns and return information for purposes other than tax
administration) is amended by adding at the end the following new
paragraph:
``(15) Disclosure of returns filed under section 6050i.--The
Secretary may, upon written request, disclose to officers and
employees of--
``(A) any Federal agency,
``(B) any agency of a State or local government, or
``(C) any agency of the government of a foreign
country,
information contained on returns filed under section 6050I. Any
such disclosure shall be made on the same basis, and subject to
the same conditions, as apply to disclosures of information on
reports filed under section 5313 of title 31, United States
Code; except that no disclosure under this paragraph shall be
made for purposes of the administration of any tax law.''.
(b) Conforming Amendments.--
(1) Subsection (i) of section 6103 is amended by striking
paragraph (8).
(2) Subparagraph (A) of section 6103(p)(3) is amended--
(A) by striking ``(7)(A)(ii), or (8)'' and inserting
``or (7)(A)(ii)'', and
(B) by striking ``or (14)'' and inserting ``(14), or
(15)''.
(3) The material preceding subparagraph (A) of section
6103(p)(4) is amended--
(A) by striking ``(5), or (8)'' and inserting ``or
(5)'',
[[Page 110 STAT. 1473]]
(B) by striking ``(i)(3)(B)(i), or (8)'' and
inserting ``(i)(3)(B)(i),'', and
(C) by striking ``or (12)'' and inserting ``(12), or
(15)''.
(4) Clause (ii) of section 6103(p)(4)(F) is amended--
(A) by striking ``(5), or (8)'' and inserting ``or
(5)'', and
(B) by striking ``or (14)'' and inserting ``(14), or
(15)''.
(5) Paragraph (2) of section 7213(a) is amended by striking
``or (12)'' and inserting ``(12), or (15)''.
(c) <<NOTE: 26 USC 6103 note.>> Effective Date.--The amendments
made by this section shall take effect on the date of the enactment of
this Act.
SEC. 1207. DISCLOSURE OF RETURNS AND RETURN INFORMATION TO DESIGNEE OF
TAXPAYER.
Subsection (c) of section 6103 (relating to disclosure of returns
and return information to designee of taxpayer) is amended by striking
``written request for or consent to such disclosure'' and inserting
``request for or consent to such disclosure''.
SEC. 1208. STUDY OF NETTING OF INTEREST ON OVERPAYMENTS AND LIABILITIES.
(a) In General.--The Secretary of the Treasury or his delegate
shall--
(1) conduct a study of the manner in which the Internal
Revenue Service has implemented the netting of interest on
overpayments and underpayments and of the policy and
administrative implications of global netting, and
(2) before submitting the report of such study, hold a
public hearing to receive comments on the matters included in
such study.
(b) Report.--The report of such study shall be submitted not later
than 6 months after the date of the enactment of this Act to the
Committee on Ways and Means of the House of Representatives and the
Committee on Finance of the Senate.
SEC. 1209. EXPENSES OF DETECTION OF UNDERPAYMENTS AND FRAUD, ETC.
(a) In General.--Section 7623 (relating to expenses of deduction and
punishment of frauds) is amended to read as follows:
``SEC. 7623. EXPENSES OF DETECTION OF UNDERPAYMENTS AND FRAUD, ETC.
<<NOTE: Regulations.>> ``The Secretary, under regulations
prescribed by the Secretary, is authorized to pay such sums as he deems
necessary for--
``(1) detecting underpayments of tax, and
``(2) detecting and bringing to trial and punishment persons
guilty of violating the internal revenue laws or conniving at
the same,
in cases where such expenses are not otherwise provided for by law. Any
amount payable under the preceding sentence shall be paid from the
proceeds of amounts (other than interest) collected by reason of the
information provided, and any amount so collected shall be available for
such payments.''.
[[Page 110 STAT. 1474]]
(b) Clerical Amendment.--The table of sections for subchapter B of
chapter 78 is amended by striking the item relating to section 7623 and
inserting the following new item:
``Sec. 7623. Expenses of detection of underpayments and fraud, etc.''.
(c) <<NOTE: 26 USC 7623 note.>> Effective Date.--The amendments
made by this section shall take effect on the date which is 6 months
after the date of the enactment of this Act.
(d) <<NOTE: 26 USC 7623 note.>> Report.--The Secretary of the
Treasury or his delegate shall submit an annual report to the Committee
on Ways and Means of the House of Representatives and the Committee on
Finance of the Senate on the payments under section 7623 of the Internal
Revenue Code of 1986 during the year and on the amounts collected for
which such payments were made.
SEC. 1210. USE OF PRIVATE DELIVERY SERVICES FOR TIMELY-MAILING-AS-
TIMELY-FILING RULE.
Section 7502 (relating to timely mailing treated as timely filing
and paying) is amended by adding at the end the following new
subsection:
``(f) Treatment of Private Delivery Services.--
``(1) In general.--Any reference in this section to the
United States mail shall be treated as including a reference to
any designated delivery service, and any reference in this
section to a postmark by the United States Postal Service shall
be treated as including a reference to any date recorded or
marked as described in paragraph (2)(C) by any designated
delivery service.
``(2) Designated delivery service.--For purposes of this
subsection, the term `designated delivery service' means any
delivery service provided by a trade or business if such service
is designated by the Secretary for purposes of this section. The
Secretary may designate a delivery service under the preceding
sentence only if the Secretary determines that such service--
``(A) is available to the general public,
``(B) is at least as timely and reliable on a
regular basis as the United States mail,
``(C) records electronically to its data base, kept
in the regular course of its business, or marks on the
cover in which any item referred to in this section is
to be delivered, the date on which such item was given
to such trade or business for delivery, and
``(D) meets such other criteria as the Secretary may
prescribe.
``(3) Equivalents of registered and certified mail.--The
Secretary may provide a rule similar to the rule of paragraph
(1) with respect to any service provided by a designated
delivery service which is substantially equivalent to United
States registered or certified mail.''.
SEC. 1211. <<NOTE: 26 USC 7803 note.>> REPORTS ON MISCONDUCT OF IRS
EMPLOYEES.
On or before June 1 of each calendar year after 1996, the Secretary
of the Treasury shall submit to the Committee on Ways and Means of the
House of Representatives and the Committee on Finance of the Senate a
report on--
[[Page 110 STAT. 1475]]
(1) all categories of instances involving the misconduct of
employees of the Internal Revenue Service during the preceding
calendar year, and
(2) the disposition during the preceding calendar year of
any such instances (without regard to the year of the
misconduct).
TITLE XIII--REVENUE OFFSETS
Subtitle A--Application of Failure-to-Pay Penalty to Substitute Returns
SEC. 1301. APPLICATION OF FAILURE-TO-PAY PENALTY TO SUBSTITUTE RETURNS.
(a) General Rule.--Section 6651 (relating to failure to file tax
return or to pay tax) is amended by adding at the end the following new
subsection:
``(g) Treatment of Returns Prepared by Secretary Under Section
6020(b).--In the case of any return made by the Secretary under section
6020(b)--
``(1) such return shall be disregarded for purposes of
determining the amount of the addition under paragraph (1) of
subsection (a), but
``(2) such return shall be treated as the return filed by
the taxpayer for purposes of determining the amount of the
addition under paragraphs (2) and (3) of subsection (a).''.
(b) <<NOTE: 26 USC 6651 note.>> Effective Date.--The amendment made
by subsection (a) shall apply in the case of any return the due date for
which (determined without regard to extensions) is after the date of the
enactment of this Act.
Subtitle B--Exicse Taxes on Amounts of Private Excess Benefits
SEC. 1311. EXCISE TAXES FOR FAILURE BY CERTAIN CHARITABLE ORGANIZATIONS
TO MEET CERTAIN QUALIFICATION REQUIREMENTS.
(a) In General.--Chapter 42 (relating to private foundations and
certain other tax-exempt organizations) is amended by redesignating
subchapter D as subchapter E and by inserting after subchapter C the
following new subchapter:
``Subchapter D--Failure by Certain Charitable Organizations To Meet
Certain Qualification Requirements
``Sec. 4958. Taxes on excess benefit transactions.
``SEC. 4958. TAXES ON EXCESS BENEFIT TRANSACTIONS.
``(a) Initial Taxes.--
``(1) On the disqualified person.--There is hereby imposed
on each excess benefit transaction a tax equal to 25 percent of
the excess benefit. The tax imposed by this paragraph shall be
paid by any disqualified person referred to in subsection (f)(1)
with respect to such transaction.
[[Page 110 STAT. 1476]]
``(2) On the management.--In any case in which a tax is
imposed by paragraph (1), there is hereby imposed on the
participation of any organization manager in the excess benefit
transaction, knowing that it is such a transaction, a tax equal
to 10 percent of the excess benefit, unless such participation
is not willful and is due to reasonable cause. The tax imposed
by this paragraph shall be paid by any organization manager who
participated in the excess benefit transaction.
``(b) Additional Tax on the Disqualified Person.--In any case in
which an initial tax is imposed by subsection (a)(1) on an excess
benefit transaction and the excess benefit involved in such transaction
is not corrected within the taxable period, there is hereby imposed a
tax equal to 200 percent of the excess benefit involved. The tax imposed
by this subsection shall be paid by any disqualified person referred to
in subsection (f)(1) with respect to such transaction.
``(c) Excess Benefit Transaction; Excess Benefit.--For purposes of
this section--
``(1) Excess benefit transaction.--
``(A) In general.--The term `excess benefit
transaction' means any transaction in which an economic
benefit is provided by an applicable tax-exempt
organization directly or indirectly to or for the use of
any disqualified person if the value of the economic
benefit provided exceeds the value of the consideration
(including the performance of services) received for
providing such benefit. For purposes of the preceding
sentence, an economic benefit shall not be treated as
consideration for the performance of services unless
such organization clearly indicated its intent to so
treat such benefit.
``(B) Excess benefit.--The term `excess benefit'
means the excess referred to in subparagraph (A).
``(2) Authority to include certain other private
inurement.--To the extent provided in regulations prescribed by
the Secretary, the term `excess benefit transaction' includes
any transaction in which the amount of any economic benefit
provided to or for the use of a disqualified person is
determined in whole or in part by the revenues of 1 or more
activities of the organization but only if such transaction
results in inurement not permitted under paragraph (3) or (4) of
section 501(c), as the case may be. In the case of any such
transaction, the excess benefit shall be the amount of the
inurement not so permitted.
``(d) Special Rules.--For purposes of this section--
``(1) Joint and several liability.--If more than 1 person is
liable for any tax imposed by subsection (a) or subsection (b),
all such persons shall be jointly and severally liable for such
tax.
``(2) Limit for management.--With respect to any 1 excess
benefit transaction, the maximum amount of the tax imposed by
subsection (a)(2) shall not exceed $10,000.
``(e) Applicable Tax-Exempt Organization.--For purposes of this
subchapter, the term `applicable tax-exempt organization' means--
``(1) any organization which (without regard to any excess
benefit) would be described in paragraph (3) or (4) of section
501(c) and exempt from tax under section 501(a), and
[[Page 110 STAT. 1477]]
``(2) any organization which was described in paragraph (1)
at any time during the 5-year period ending on the date of the
transaction.
Such term shall not include a private foundation (as defined in section
509(a)).
``(f) Other Definitions.--For purposes of this section--
``(1) Disqualified person.--The term `disqualified person'
means, with respect to any transaction--
``(A) any person who was, at any time during the 5-
year period ending on the date of such transaction, in a
position to exercise substantial influence over the
affairs of the organization,
``(B) a member of the family of an individual
described in subparagraph (A), and
``(C) a 35-percent controlled entity.
``(2) Organization manager.--The term `organization manager'
means, with respect to any applicable tax-exempt organization,
any officer, director, or trustee of such organization (or any
individual having powers or responsibilities similar to those of
officers, directors, or trustees of the organization).
``(3) 35-percent controlled entity.--
``(A) In general.--The term `35-percent controlled
entity' means--
``(i) a corporation in which persons described
in subparagraph (A) or (B) of paragraph (1) own
more than 35 percent of the total combined voting
power,
``(ii) a partnership in which such persons own
more than 35 percent of the profits interest, and
``(iii) a trust or estate in which such
persons own more than 35 percent of the beneficial
interest.
``(B) Constructive ownership rules.--Rules similar
to the rules of paragraphs (3) and (4) of section
4946(a) shall apply for purposes of this paragraph.
``(4) Family members.--The members of an individual's family
shall be determined under section 4946(d); except that such
members also shall include the brothers and sisters (whether by
the whole or half blood) of the individual and their spouses.
``(5) Taxable period.--The term `taxable period' means, with
respect to any excess benefit transaction, the period beginning
with the date on which the transaction occurs and ending on the
earliest of--
``(A) the date of mailing a notice of deficiency
under section 6212 with respect to the tax imposed by
subsection (a)(1), or
``(B) the date on which the tax imposed by
subsection (a)(1) is assessed.
``(6) Correction.--The terms `correction' and `correct'
mean, with respect to any excess benefit transaction, undoing
the excess benefit to the extent possible, and taking any
additional measures necessary to place the organization in a
financial position not worse than that in which it would be if
the disqualified person were dealing under the highest fiduciary
standards.''.
(b) Application of Private Inurement Rule to Tax-Exempt
Organizations Described in Section 501(c)(4).--
[[Page 110 STAT. 1478]]
(1) In general.--Paragraph (4) of section 501(c) is amended
by inserting ``(A)'' after ``(4)'' and by adding at the end the
following:
``(B) Subparagraph (A) shall not apply to an entity unless
no part of the net earnings of such entity inures to the benefit
of any private shareholder or individual.''.
(2) <<NOTE: 26 USC 501 note.>> Special rule for certain
cooperatives.--In the case of an organization operating on a
cooperative basis which, before the date of the enactment of
this Act, was determined by the Secretary of the Treasury or his
delegate, to be described in section 501(c)(4) of the Internal
Revenue Code of 1986 and exempt from tax under section 501(a) of
such Code,
the allocation or return of net margins or capital to the members of
such organization in accordance with its incorporating statute and
bylaws shall not be treated for purposes of such Code as the inurement
of the net earnings of such organization to the benefit of any private
shareholder or individual. The preceding sentence shall apply only if
such statute and bylaws are substantially as such statute and bylaws
were in existence on the date of the enactment of this Act.
(c) Technical and Conforming Amendments.--
(1) Subsection (e) of section 4955 is amended--
(A) by striking ``Section 4945'' in the heading and
inserting ``Sections 4945 and 4958'', and
(B) by inserting before the period ``or an excess
benefit for purposes of section 4958''.
(2) Subsections (a), (b), and (c) of section 4963 are each
amended by inserting ``4958,'' after ``4955,''.
(3) Subsection (e) of section 6213 is amended by inserting
``4958 (relating to private excess benefit),'' before ``4971''.
(4) Paragraphs (2) and (3) of section 7422(g) are each
amended by inserting ``4958,'' after ``4955,''.
(5) Subsection (b) of section 7454 is amended by inserting
``or whether an organization manager (as defined in section
4958(f)(2)) has `knowingly' participated in an excess benefit
transaction (as defined in section 4958(c)),'' after ``section
4912(b),''.
(6) The table of subchapters for chapter 42 is amended by
striking the last item and inserting the following:
``Subchapter D. Failure by certain charitable organizations to meet
certain qualification requirements.
``Subchapter E. Abatement of first and second tier taxes in certain
cases.''.
(d) Effective Dates.--
(1) <<NOTE: 26 USC 4955 note.>> In general.--The amendments
made by this section (other than subsection (b)) shall apply to
excess benefit transactions occurring on or after September 14,
1995.
(2) <<NOTE: 26 USC 4955 note.>> Binding contracts.--The
amendments referred to in paragraph (1) shall not apply to any
benefit arising from a transaction pursuant to any written
contract which was binding on September 13, 1995, and at all
times thereafter before such transaction occurred.
(3) <<NOTE: 26 USC 501 note.>> Application of private
inurement rule to tax-exempt organizations described in section
501(c)(4).--
(A) In general.--The amendment made by subsection
(b) shall apply to inurement occurring on or after
September 14, 1995.
[[Page 110 STAT. 1479]]
(B) Binding contracts.--The amendment made by
subsection (b) shall not apply to any inurement
occurring before January 1, 1997, pursuant to a written
contract which was binding on September 13, 1995, and at
all times thereafter before such inurement occurred.
SEC. 1312. REPORTING OF CERTAIN EXCISE TAXES AND OTHER INFORMATION.
(a) Reporting by Organizations Described in Section 501(c)(3).--
Subsection (b) of section 6033 (relating to certain organizations
described in section 501(c)(3)) is amended by striking ``and'' at the
end of paragraph (9), by redesignating paragraph (10) as paragraph (14),
and by inserting after paragraph (9) the following new paragraphs:
``(10) the respective amounts (if any) of the taxes paid by
the organization during the taxable year under the following
provisions:
``(A) section 4911 (relating to tax on excess
expenditures to influence legislation),
``(B) section 4912 (relating to tax on disqualifying
lobbying expenditures of certain organizations), and
``(C) section 4955 (relating to taxes on political
expenditures of section 501(c)(3) organizations),
``(11) the respective amounts (if any) of the taxes paid by
the organization, or any disqualified person with respect to
such organization, during the taxable year under section 4958
(relating to taxes on private excess benefit from certain
charitable organizations),
``(12) such information as the Secretary may require with
respect to any excess benefit transaction (as defined in section
4958),
``(13) such information with respect to disqualified persons
as the Secretary may prescribe, and''.
(b) Organizations Described in Section 501(c)(4).--Section 6033 is
amended by redesignating subsection (f) as subsection (g) and by
inserting after subsection (e) the following new subsection:
``(f) Certain Organizations Described in Section 501(c)(4).--Every
organization described in section 501(c)(4) which is subject to the
requirements of subsection (a) shall include on the return required
under subsection (a) the information referred to in paragraphs (11),
(12) and (13) of subsection (b) with respect to such organization.''.
(c) <<NOTE: 26 USC 6033 note.>> Effective Date.--The amendments
made by this section shall apply to returns for taxable years beginning
after the date of the enactment of this Act.
SEC. 1313. EXEMPT ORGANIZATIONS REQUIRED TO PROVIDE COPY OF RETURN.
(a) Requirement To Provide Copy.--
(1) Subparagraph (A) of section 6104(e)(1) (relating to
public inspection of annual returns) is amended to read as
follows:
``(A) In general.--During the 3-year period
beginning on the filing date--
``(i) a copy of the annual return filed under
section 6033 (relating to returns by exempt
organizations) by any organization to which this
paragraph applies shall be made available by such
organization for inspection during regular
business hours by any individual at
[[Page 110 STAT. 1480]]
the principal office of such organization and, if
such organization regularly maintains 1 or more
regional or district offices having 3 or more
employees, at each such regional or district
office, and
``(ii) upon request of an individual made at
such principal office or such a regional or
district office, a copy of such annual return
shall be provided to such individual without
charge other than a reasonable fee for any
reproduction and mailing costs.
The request described in clause (ii) must be made in
person or in writing. If the request under clause (ii)
is made in person, such copy shall be provided
immediately and, if made in writing, shall be provided
within 30 days.''.
(2) Clause (ii) of section 6104(e)(2)(A) is amended by
inserting before the period at the end the following: ``(and,
upon request of an individual made at such principal office or
such a regional or district office, a copy of the material
requested to be available for inspection under this subparagraph
shall be provided (in accordance with the last sentence of
paragraph (1)(A)) to such individual without charge other than
reasonable fee for any reproduction and mailing costs)''.
(3) Subsection (e) of section 6104 is amended by adding at
the end the following new paragraph:
``(3) Limitation.--Paragraph (1)(A)(ii) (and the
corresponding provision of paragraph (2)) shall not apply to any
request if, in accordance with regulations promulgated by the
Secretary, the organization
has made the requested documents widely available, or, the Secretary
determines, upon application by an organization, that such request is
part of a harassment campaign and that compliance with such request is
not in the public interest.''.
(b) Increase in Penalty for Willful Failure To Allow Public
Inspection of Certain Returns, Etc.--Section 6685 is amended by striking
``$1,000'' and inserting ``$5,000''.
(c) <<NOTE: 26 USC 6104 note.>> Effective Date.--The amendments
made by this section shall apply to requests made on or after the 60th
day after the Secretary of the Treasury first issues the regulations
referred to section 6104(e)(3) of the Internal Revenue Code of 1986 (as
added by subsection (a)(3)).
SEC. 1314. INCREASE IN PENALTIES ON EXEMPT ORGANIZATIONS FOR FAILURE TO
FILE COMPLETE AND TIMELY ANNUAL RETURNS.
(a) In General.--Subparagraph (A) of section 6652(c)(1) (relating to
annual returns under section 6033) is amended by striking ``$10'' and
inserting ``$20'' and by striking ``$5,000'' and inserting ``$10,000''.
(b) Larger Penalty on Organizations Having Gross Receipts in Excess
of $1,000,000.--Subparagraph (A) of section 6652(c)(1) is amended by
adding at the end the following new sentence: ``In the case of an
organization having gross receipts exceeding $1,000,000 for any year,
with respect to the return required under section 6033 for such year,
the first sentence of this subparagraph shall be applied by substituting
`$100' for `$20' and, in lieu of applying the second sentence of this
subparagraph, the maximum penalty under this subparagraph shall not
exceed $50,000.''.
[[Page 110 STAT. 1481]]
(c) <<NOTE: 26 USC 6652 note.>> Effective Date.--The amendments
made by this section shall apply to returns for taxable years ending on
or after the date of the enactment of this Act.
Approved July 30, 1996.
LEGISLATIVE HISTORY--H.R. 2337:
---------------------------------------------------------------------------
HOUSE REPORTS: No. 104-506 (Comm. on Ways and Means).
CONGRESSIONAL RECORD, Vol. 142 (1996):
Apr. 16, considered and passed House.
July 11, considered and passed Senate.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 32 (1996):
July 30, Presidential remarks.
<all>