WPC jm̹bS]:VnF}DSt߸Z2s{) 1 AuoTL5Ӕ}!Br6X2,b ;Y`Htw2h+ĉEGĻX.,W Pc3t|-:}qobx^MmEyzTdua}kԠI&@.UaV{pDxPwUuSML1 OQnM_k=1ƙ={?skh؜ qpSDDZ{]w۷I-kQI[+wi_Om~0N~yҤp~"xA}C$Iy'Oi"MZGױuwʾmpHPY>w"Jw(4I|}{V7'\IDA=%[gI2lw!# U. % 0( U>5w@s4b 0Db2 0DBBBBBBBBBBBBBBBBBBB 0LIBM 4039 plus LaserPrinter4039PLUS.PRS\\SD<6X9`+CourierX($(\  p`&Times New Roman T D U U U D U D D e>T"|x  of 14(3$ !  of 13(3$ !  >c$"Small Circle"0 !  TRY3'Standard3' 3'Standard3'TXXXX   7ÑXXdd7   7ÑXXdXXd7 @March30,1998;7:00p.m.  ̜        @  AmendmentstotheIRSRestructuringBill   ̜  Baucus T 1.0 ` Complexity & v` `  0 ` SenseofCongressthatthetaxwritingcommitteesofCongresshearfromIRStechnicalexpertsre:administrabilityofpendingIRCamendments. ` `  0 ` RequirethatIRCamendmentsbeaccompaniedbyJCTcomplexityanalysisorbesubjecttoapointoforder. ` `   2. ` [withHatch] Notices9811and985    0 ` Notices985and9811beheldinabeyanceuntiltheyareconsideredthroughnormallegislativeprocess. ` `  0 ` Requirethatanyadministrativeguidanceforforeigntaxesbesubjecttonormalregulatoryprocedures. ` `  3.0 ` Extenders K` `   ` R&E,WOTC,andcontributionsofstockthrough6/30/994. ` IRSOversightBoard    ` IncludetheSecretaryoftheTreasury5. ` IRSOversightBoard  q  ` Includeanemployeerepresentative6. ` SourceCode  ,| 0 ` Loosensthelimitationsanauthoritytoprovideproductionofsourcecode(5specifics). ` `  7. ` StateOffsets  !   0 ` Authorizefederalrefundstobeusedtooffsetstatetaxdebts. ` `  8. ` 1099Reporting  $#  ` Extenddeadlineto2/159. ` &  Partnerships  F'"& 0 ` RequireIRStonotify'F'M ԀallpartnersofanyIRSrequiredresignationofthetaxmatterspartner,andtoidentifythesuccessortaxmatterspartner. ` `  10. ` DesignatedSummons  *:&*  ` Repealtheauthority. +#'+ Ї11. ` COLI   0 ` Extendproratainterestdisallowance;createabusinesssafeharborfor$10millioninpremiums;effectivedatewouldbe3/30/98(grandfatheredpremiumsonlyasnecessarytokeepdeathbenefitinforce). ` `  12.0 ` ForeignSalesCorporations   & v` `   ` Clarifythatsection927(e)doesnotapplytoroyaltyincomefrom ` licenses.13.0 ` TechnicalCorrection     ` `  0 ` EstateTaxes:cashleasingbyadecedenttoafamilymembersatisfiesrequirementsofsection2033Are:estatetaxfamilyownedbusinessexclusion. ` `  Breaux @ 1. ` SchmidtBaking  b 0 ` Willnotapplytoanemployer'sirrevocablepaymentsmadetoaqualifiedtrust. ` `  2. ` Notices9811and985   0 ` RequiresTreasurytosubmitalegislativeproposalandsuspendsthenoticesfromtakingeffectuntilCongressenactslegislation. ` `  3. ` IRSChiefCounsel  Z 0 ` ToallowtheIRSchiefcounseltocontinuereportingtotheTreasuryCounsel(asundercurrentlaw). ` `  4. ` TaxpayerAssistanceOrders  N 0 ` AllowthetaxpayeradvocatetoissueTAOswhenallothercriteriaaremet. ` `  ̜  Bryan $# 1. ` IRSOversightBoard  ]&!%  ` Addunionrep.2. ` IRSOversightBoard  )h$(  ` AddTreasurySecretary.̜  +#'+  3. ` InnocentSpouse   0 ` ReplacewithHouselanguage;userevenuesavedformarriagepenaltyrelief. ` `  4. ` InnocentSpouse  T 0 ` Addrequirementthattaxpayercannotelectunlessheorshehadnoreasontoknowofanyunderstatementwhenheorshesignedthereturn. ` `  5. ` InnocentSpouse   H 0 ` Limitrelieftothosewhoaredivorcedorlegallyseparated. ` `  6. ` TaxComplexity     ` RequireJCTtoprovideacomplexityanalysis.0 ` Createa60votepointoforderforanybillthatdoesnothavesuchanalysis. ` `  7. ` TaxProtestors  @ 0 ` DeleteprohibitionfromIRSkeepingalist;instead,allowTaxpayerϜAdvocatetoremovetaxpayersincorrectlyaddedtothelist. ` `  8. ` REITs 4 0 ` AllowREITstoelectpairedsharestatus;AllpairedREITswouldpaya  tollcharge,atanamountsetbyJCTtoproduceequalrevenuewithChairman'smark. ` `  9. ` Treas.Notice9811  q  ` Perfectandclarify"grandfather"ruleintheregulation.̛̜Chafee N 1. ` BurdenofProof  !   0 ` RetainsrebuttablepresumptionthatIRSdeterminationofliabilityiscorrect;burdenshiftstoIRSforstatisticalassessmentsandforpenalties. ` `  2. ` FinancialStatusAudits  t% $ 0 ` StrikesprovisioninthemarkthatprohibitsIRSfromusingfinancialstatusoreconomicrealitytechniques. ` `  ̜3. ` OfferinCompromise  *Q%) 0 ` Strikesprovisioninthemarkthatimplementsliberalacceptancepoliciesforoffersincompromise.+#'+` `  ЇConrad  1. ` SchmidtBaking  k 0 ` Limitapplicability,sothatitwillnotapplytoirrevocablepaymentsmadetoaqualifiedtrust. ` `  2. ` BurdenofProof   _  ` StrikeallprovisionsfromChairman'smark.3. ` Stateoffset     4. ` InspectorGeneral  h    0 ` EliminateIRSChiefInspector,andretainallitspowersunderanIRSIG. ` `  5. ` TravelExpensesforTemp.Employment  @ М0 ` Clarifythattravelexpensesforfederalemployeesindisasterareasforextendedperiodsofemploymentawayfromhomecanbededucted. ` `  6.0 ` EstateTax 4` `  0 ` Undersection504oftheTaxpayerReliefActof1997,taxpayerswithanopenyearcanapplyforrefundsforcashleases;amendmentwouldallowtaxpayerswhohadpaidtheirtaxoneyeartoapplyforarefund. ` `  7. ` QualifiedMortgageBondsinDisasterAreas  q 0 ` Waivestaxexemptvolumecapforbondfinancingofcertainrentalprojects(through1998). ` `  ̜8. ` TemporaryEmployment  e 0 ` Extendstimeperiodto18monthsfromoneyearforemployeesawayfromhomeonqualifiedconstructionprojects. ` `  ̜D'Amato $# 1. ` InnocentSpouse  ]&!%  ` Allow10yearstomakeelectionforreliefratherthan2years.2. ` InnocentSpouse  )h$( 0 ` AllowrefundsoflevyproceedsifIRSfailstogiveinnocentspousenotice. ` `   +#'+ 3. ` InnocentSpouse    ` IRSmustsendseparatenotificationtobothspousesbycertifiedmail.4. ` TaxpayerDirectedRefunds  k 0 ` RequireIRStoremitrefundsinmannerrequestedbytaxpayer(i.e.directdeposit). ` `  5. ` 1099Reporting   _  ` Extenddeadlineto2/15.6. ` BreastCancer      ` Requirementforminimumcoverage.Graham: n  1. ` StatuteofLimitationsCollections  @  ` Reduceforcollectionfrom10yearsto6years.2. ` StatuteofLimitationsRefunds  K  ` Increaserefundclaimperiodfrom3to6years.3. ` IRSphonenumbers    0 ` RequireIRStolistaddressandphonenumberinlocaltelephonedirectories. ` `  4. ` ReviewofOffersinCompromise  Z 0 ` CodifystatedpracticeofIRStohaveAppealsreviewrejectedoffersincompromise,andrequirenoticetotaxpayersofthisright. ` `  5. ` RotateCollectionsPersonnel  N 0 ` AuthorizeCommissionertorotatecollectionspersonnelthroughotherIRSdivisions. h !  ` `   ̜6. ` ExpandADR  $# 0 ` DirectIRStoestablishapilotprogramforbindingarbitration(notmediation)tosmallamounts(undefined). ` `  7. ` GlobalNetting  /(#'  ` Extendtoalltaxes(notjustincomeandSE)andincludeopenyears.̜  +#'+  8. ` AnnualInstallmentAgreementStatement   0 ` RequireIRStoprovideannualstatementforinstallmentagreementamountspaid,balanceowed,etc. ` `  9. ` EP/EO  T 0 ` AddlanguagetoCommitteeReportrecognizingtheneedforadequatefundingofEP/EO.[Textof2/9/98lettertoRossottifromGraham,Hatch,Breaux,Jeffords,Baucus,Grassley,andRossottiresponse2/20/98] ` `  10. ` FICATaxesonTips     0 ` Employee'swagehistoriesmustbecreditedifFICAtaxesareimposedonanemployer. ` `  11. ` Section401(k)plansandinvestments  n  0 ` Clarifyelectivedeferralswithrespecttoallocationsofassetsre:employerrealproperty.  @` `  12. ` Technical  b 0 ` ImportedWine:forasection5010credit,samestandardsapplytodomesticandimportedwine. ` `  Gramm  1. ` BurdenofProof  q 0 ` Broadensburdenshifttoalltaxcourtproceedingswherethereisadeficiency(andnotjustincometaxdeficiencies). ` `  2. ` InnocentSpouse  e 0 ` Assetstransferredbetweenspouseswouldnotbesubjecttoreliefunlesstaxpayercanshowthattransferoccurredforreasonsotherthantaxavoidance. ` `  ̜Grassley ]&!% 1. ` IRSOversightBoard  /(#'  ` Addunionrep.̜  +#'+  2. ` [withKerrey]  IRSOversightBoard   0 ` Excludesunionrep.fromfederalconflictofinterestrulesrelatingtotheunion. ` `  0 ` UnionwouldfiledetailedfinancialinformationwithWays&MeansandFinance,includingmembershipduesandcompensationofunionemployees. ` `  3. ` Stateoffsets   _ М0 ` Authorizefederalrefundstobeusedtooffsetstatetaxdebts. ` `  Л4. ` [withMack] IG/Section6103     0 ` RequireTreasuryIGimplementaprogramtorandomlyauditsection6103determinationsmadebyIRSemployees ` `  5. ` Seizures  n  0 ` RequiresIRStoexhaustallpaymentoptions,includinginstallmentagreement,beforeseizingabusinessorprincipalresidence. ` `  6. ` TaxpayerAdvice  b 0 ` RequiresIRSofficial,followingaphoneconversationanduponrequestofthetaxpayer,toprovidewrittenadvice. ` `  7. ` IRSOversightBoard/Commissioner/TaxpayerAdvocate   0 ` Board:mustensureappropriatefinancialauditsofIRS;expand6103authorityforlawenforcementoversight;authorizetravelexpensesforvisitstoIRSoffices.    q` `  0 ` Commissioner:requirementmustbe"demonstratedabilityinmanagement";specifythathecanbereappointedforsubsequentterms. ` `  0 ` Advocate:musthaveexperiencerepresentingindividualtaxpayersortaxpayerrights;musthaveaseparatemailingaddress. ` `  8. ` PhoneNumber   7 0 ` IRSmustestablishatollfreenumbertoregisteremployeemisconductcomplaints. ` `  9. ` Combinedstateandfederalreporting . $#  ` AllowsIRStodevelopaprogramforcombinedreporting. `  ` Hatch /(#' 1.0 ` 1099Reporting *Q%)` `  0 ` Extenddeadlineto2/15 ` `    +#'+  2. 0 ` Extenders ` `  0 ` ExtendsR&Ecreditfor3monthsto9/30/98;alsoraisesalternativeincrementalR&Erates. ` `  3.0 ` ForeignSalesCorporationsT` `   ` Clarifythatsection927(e)doesnotapplytoroyaltyincomeform =   ` licenses.  & v  4. ` IRSAdministrativeNotices     H 0 ` Amendsection7805(b)toprohibitIRSfromissuingretroactiveϜregulations s (w/2exceptions). ` `  5. ` Extender     ` ExtendsR&Eforoneyearandraisesalternativecreditrate.6. ` StudyonForeignCompetition  W  0 ` SecretaryshouldstudyeffectofIRConabilityofU.S.businessestocompeteinforeignmarketsandtorecommendamendmentstoenhanceU.S.competitiveposition. ` `  7. ` ControlledForeignCorporations  4 0 ` ModifyTaxpayerReliefActof1997re:exemptionofactivefinancingincomeofacontrolledforeigncorporation. ` `  ̜Kerrey q 1. ` HouseIRSbill  C 0 ` SubstituteH.R.2676fortheChairman'smark. ` `  0 ` PayforitbyusingtherepealofSchmidtBakingandtheforeigntaxcreditoneyearcarryback/sevenyearcarryforward.. ` `  2. ` CongressionalAccountabilityforIRS  !    ` JCTcomplexitystudies;jointhearingsonoversight,etc.3. ` IRSOversightBoard  $#  ` Addunionrep.̜4. ` Stateoffsets  /(#' М0 `  Authorizefederalrefundstobeusedtooffsetstatetaxdebts. ` `  М5. ` ElectronicFiling  *:&* 0 ` Addsincentives,waiverofsignaturerequirements,etc.  +#'+` `  Ї6. ` IRSOversightBoard   0 ` NoconflictofinterestifaboardmemberwhosecompanyisinadisputewiththeIRSdoesnot"meaningfully"participateindiscussionsrelatingtosuchdisputes. ` `  7. ` [withGrassley] IRSOversightBoard  =  0 ` Excludesunionrep.fromfederalconflictofinterestrulesrelatingtotheunion. ` `  0 ` UnionwouldfiledetailedfinancialinformationwithWays&MeansandFinance,includingmembershipduesandcompensationofunionemployees. ` `  Lott   1. ` IRSOversightBoard/Section6103  W  0 ` ProvidesauthorityfortheboardtoseeanyIRSinfoinitsoriginal,uneditedform(no6103redaction). ` `   ` FOIArequestsdeniedbyIRSbecauseof6103shallbereviewedbyIG.2. ` AuthoritytoFireIRSEmployees  4 0 ` Commissionershallhaveauthoritytofire,ordemoteanyIRSemployeewhoabusesorharassesataxpayerorwhoisinthebottom25%oftheagency'sperformancestandards. ` `  Mack Z 1. ` [withGraham] FICATaxesonTips  ,| 0 ` Employee'swagehistoriesmustbecreditedifFICAtaxesareimposedonanemployer. ` `  2. ` AttorneysFeesandCosts  !   0 ` Expresslyprovideforawardoffeesandcostsinillegalbrowsingordisclosurecases(amendsection7430(a)). ` `  ̜3. ` [withGrassley] IG/Section6103  F'"& 0 ` RequireTreasuryIGimplementaprogramtorandomlyauditsection6103determinationsmadebyIRSemployees. )h$(` `   4. ` LevyorSeizure  *:&*  ` RequireIRStogetcourtapprovalbeforeanylevy. +#'+ Ї5. ` EmploymentTaxSafeHarbor   0 ` Repealsection1706whichremovedtechnicalservicespersonnelfromtheemploymenttaxsafeharbor. ` `  ̜6. ` IRSOversightBoard  T 0 ` Requireaminimumof15fulltimeemployeesontheboard'spermanentstaff. ` `  7. ` [withD'Amato&Graham] ImportedWine   H 0 ` Forasection5010credit,samestandardsapplytodomesticandimportedwine.   ` `   8. ` Extenders    0 ` ExtendR&E,WOTC,andFMVdeductionforappreciatedstockthroughendof1999. ` `  9. ` IRSAdministrativeNotices    @ 0 ` Amendsection7805(b)toprohibitIRSfromissuingretroactiveϜregulations(w/2exceptions).[ThisisinresponsetoNotices9811and985]. ` `  10. ` [withBreaux] Notices9811and985   0 ` RequiresTreasurytosubmitalegislativeproposalandsuspendsthenoticesfromtakingeffectuntilCongressenactslegislation. ` `  11. ` DCZone  q 0 ` EliminatestheDCzonerequirementforDCassetstoqualifyforzeropercentcapitalgains(section1400B). ` `  ̜    MoseleyBraun N 1. ` Stateoffsets  !   0 ` IRScanapplyfed.refundtostatedebt;theremustbealegalstatejudgment,andiftaxpayerquestionsoffset,itispostponeduntilresolution. ` `   ` Claimedrevenueimpact:raises$12millionoverfiveyears.2. ` IRSOversightBoard F'"&  ` All6103informationmustberedacted. /(#' 3. ` GlobalInterestNetting  *Q%) 0 ` Extendtoallopenyears(taxpayerhasuntil12/31/99torequestsuchnetting). +#'+` `  Ї4. ` IRSOversightBoard   ` Addaunionrep.  5. ` 1099Reporting  k  ` Extenddeadlineto2/156. ` REITs & v 0 ` Allowpairedsharetocontinue,butimposeatollchargesothatthereis  _ notaxadvantageoverCcorps. ` `  7. ` SeparateWrittenConsents     0 ` Amendsection7216sothatthereisnorequirementforseparatewrittenconsentsforeachcommunicationregardinganontaxproductorservice. ` `  8.  ` PreparerIdentificationNumbers n   0 ` Removerequirementthatpreparersusetheirsocialsecuritynumberon W  returns,andallowforalternativemeansofidentification.[section6109(a)(4)] ` `  9. ` StudyofInterestandPenalties  K 0 ` InsteadofseparatestudiesbyJCTandTreasury,requireJCTtostudyinterestandpenalties. ` `  10. ` Technical   0 ` Section2033(A):clarifythatcashleasingoffarmlandsatisfiesexclusionrequirements.  q` `  ̜Moynihan e 1. ` IRSOversightBoard   7  ` AddTreasurySecretary2. ` ComplexityAnalysis  #"  ` RequireJCTtoprovidecomplexityanalysis(alsolistsrequirements).3. ` IRSOversightBoard  ]&!%  ` Addunionrep.4. ` InterestNotification  )h$(  ` Noticesimposinginterestmustlistcodesection,dates,payments,etc.̜  +#'+  5. ` Stateoffsets   М0 `  Authorizefederalrefundstobeusedtooffsetstatetaxdebts. ` `  М6. ` 1099Reporting  k  ` Extenddeadlineto2/15̜7. ` BurdenofProof  & v 0 ` Replacewithprovisiongivingtaxcourtauthoritytoshiftburdenonacasebycasebasis,whenthecourtfindsthattaxpayerhasbeenthesubjectofunfairtreatmentandthegovernment'spositionhasnotbeenreasonablyexplained. ` `   ` Thiswouldreducecostsby$1millionover5years.8. ` Year2000analysis    0 ` IRStoreportwithin14daysofenactmentoftheoverallimpactofthisbillontheyear2000conversion. ` `  9. ` TobaccoTaxIncrease  )y 0 ` ImplementtobaccotaxincreasepaidpassedbytheFinanceCommitteelastyear(raisescurrenttax5centsperpackandaccelerates15centsincrease). ` `  Rockefeller  1. ` Stateoffsets  q М0 `  Authorizefederalrefundstobeusedtooffsetstatetaxdebts. ` `  М  2. ` AccountantClientPrivilege  ,| 0 ` Limitprivilegetoindividualsandnonpubliclytradedbusinesses. @]  ` `  0 ` ModifyprivilegetoanyindividualwhoisauthorizedtopracticebeforetheIRSundersection330ofTitle31. ` `  3. ` AccrualofInterestandPenalties  " ! 0 ` Substituteaproposalthatestablishesagoalfornoticesofdeficiencywithinoneyear,andannualreportsonthisgoal. ` `  Murkowski /(#' 1. ` AppealsHearing  *Q%) 0 ` Taxpayerrequestedhearingwithanappealsofficermusttakeplacewithinthestate.+#'+` `  ЇNickles  1. ` SourceCode k  0 ` IRSmustexhaustconventionalaudittechniques.T` `  М ` OFFSETS:  RepealDCincentives;RepealWelfaretoWorkcredit =  2. ` TaxPreparationSoftware   _ 0 ` Taxpayerorrepresentativehasrighttobepresentduringanyexaminationoftaxpayer'ssoftware. ` `  М ` OFFSETS:same3. ` SmallBusinesses    0 ` Participationintheelectronicfederaltaxpaymentsystem(EFTPS)isvoluntaryforbusinesseswithtaxesbelow$5million[modeledonS.570]. ` `  М ` OFFSETS:same4. ` GlobalInterestNetting  b  ` Allowforallopentaxyears.̜ ` OFFSETS:same5. ` Audits   0 ` RequiresIRSofficialinitiatingaudittosignhisorhernameandreasonsfortheaudit. ` `  ̜6. ` ThirdPartySummons  C 0 ` Noticetotradeorbusinesstaxpayersbeforesummonsissuedtothirdparties. ` `  М ` OFFSETS:same7. ` ForeignSalesCorporations  !    ` Clarifysection927(e)doesnotapplytoroyaltyincomefromlicenses.