Taxpayer Bill of Rights 2

enactedUnited States· United States Congress· EN

Introduced

14 September 1995

Last action

30 July 1996 · President

Status

Became Public Law No: 104-168.

Summary

TABLE OF CONTENTS: Title I: Taxpayer Advocate Title II: Modifications to Installment Agreement Provisions Title III: Abatement of Interest and Penalties Title IV: Joint Returns Title V: Collection Activities Title VI: Information Returns Title VII: Awarding of Costs and Certain Fees Title VIII: Modification to Recovery of Civil Damages for Unauthorized Collection Actions Title IX: Modifications to Penalty for Failure to Collect and Pay Over Tax Title X: Modifications of Rules Relating to Summonses Title XI: Relief From Retroactive Application of Treasury Department Regulations Title XII: Miscellaneous Provisions Taxpayer Bill of Rights 2 - Title I: Taxpayer Advocate - Amends the Internal Revenue Code to establish in the Internal Revenue Service (IRS) the Office of Taxpayer Advocate to: (1) assist taxpayers in resolving problems with the IRS; (2) identify areas in which taxpayers have problems in dealings with the IRS; and (3) propose administrative and identify legislative changes to mitigate the problems. Requires a formal response to all recommendations submitted to the Commissioner of Internal Revenue by the Taxpayer Advocate. Replaces the Office of the Ombudsman with the Office of the Taxpayer Advocate. (Sec. 102) Allows Taxpayer Assistance Orders to require the Secretary of the Treasury to: (1) act within a specified time period; and (2) take certain actions (currently, only to cease or refrain from taking certain actions). Title II: Modifications to Installment Agreement Provisions - Requires prior notification to taxpayers under an installment agreement to pay tax liability before altering, modifying, or terminating such an agreement. (Sec. 202) Provides for administrative review of installment agreement terminations. Title III: Abatement of Interest and Penalties - Authorizes the abatement of interest in the case of an assessment due to the unreasonable error or delay (currently, due to the error or delay) of an IRS act. (Sec. 302) Grants the Tax Court jurisdiction over actions brought by a taxpayer meeting specified requirements to determine whether the failure to abate interest was an abuse of discretion. (Sec. 303) Extends from ten to 21 days the period for which interest will not be imposed after notice and demand for payment, if such payment is less than $100,000. (Sec. 304) Allows abatement of the penalty on a person's: (1) inadvertent failure to deposit any employment tax in certain circumstances; and (2) first inadvertent sending of the required deposit to the Secretary instead of the appropriate depository. Title IV: Joint Returns - Directs the Secretary and the Comptroller General to each conduct separate studies and report to specified congressional committees regarding certain issues related to joint returns. (Sec. 402) Removes limitations on filing a joint return after filing separate returns for the same taxable year. (Sec. 403) Requires the disclosure of collection activities to an individual requesting such information in the case of a joint return where such individual is no longer married to or resides in the same household as the other joint filer. Title V: Collection Activities - Authorizes the Secretary, in certain cases, to: (1) withdraw a notice of a lien; (2) return property that has been levied upon; and (3) offer compromises in civil or criminal cases. Requires the Secretary to provide a copy of such notice of withdrawal to the taxpayer and, at the request of the taxpayer, to make reasonable efforts to notify credit reporting agencies and financial institutions of such withdrawal of notice. (Sec. 502) Waives a requirement of filing of a Treasury Department General Counsel's opinion regarding compromises involving amounts less than $100,000 (currently, less than $500). Title VI: Information Returns - Establishes civil damages for filing fraudulent information returns. (Sec. 602) Imposes on the Secretary, in any court proceeding where a taxpayer disputes income reported on an information return filed by a third party and the taxpayer has fully cooperated with the Secretary, the burden of producing reasonable and probative information concerning the deficiency in addition to the return. Title VII: Awarding of Costs and Certain Fees - Shifts, in the awarding of certain costs and fees to the prevailing party, the burden of proof (regarding establishing whether the United States was substantially justified) from the prevailing party to the United States. Establishes a rebuttable presumption that the U.S. was not substantially justified if the IRS did not follow its published guidance in the administrative proceeding. (Sec. 702) Increases the limit on attorney's fees. (Sec. 703) Provides that any failure to agree to an extension of time for the assessment of any tax shall not be taken into account in determining whether a prevailing party has exhausted all administrative remedies. (Sec. 704) Allows the awarding of litigation costs in declaratory judgment proceedings. Title VIII: Modification to Recovery of Civil Damages for Unauthorized Collection Actions - Increases the dollar limit on the recovery of civil damages for unauthorized collection actions. (Sec. 802) Allows a court to reduce (currently, prohibits) damages if the plaintiff has not exhausted administrative remedies. Title IX: Modifications to Penalty for Failure to Collect and Pay Over Tax - Establishes preliminary notice requirements regarding failure to pay tax. (Sec. 902) Directs the Secretary to disclose certain information where more than one person is liable for a penalty. Allows each person who paid the penalty to recover proportionately from other liable persons. (Sec. 904) Prohibits imposing a penalty (for a failure to collect and pay over a tax) on unpaid, volunteer, honorary board members of tax-exempt organizations who do not participate in day-to-day financial operations or have actual knowledge of the failure. Directs the Secretary to ensure that IRS employees are aware of their responsibilities under the tax depository system, the circumstances under which they may be liable for penalties, and certain reporting responsibilities. Title X: Modifications of Rules Relating to Summonses - Includes enrolled agents in the definition of "third-party recordkeeper" for purposes of provisions relating to third-party summonses. (Sec. 1002) Revises designated summons provisions concerning the standard of review and the persons to whom such a summons may be issued. Title XI: Relief from Retroactive Application of Treasury Department Regulations - Prohibits, subject to exception, retroactive regulations. Allows taxpayers to elect retroactive application in certain circumstances. Title XII: Miscellaneous Provisions - Directs the Secretary to submit to specified congressional committees, by a specified date, a report on the pilot program for appeals of enforcement actions. (Sec. 1202) Requires payee statements to provide the phone number (as well as the name and address) of the person providing payment. (Sec. 1203) Requires notification of a taxpayer from whom a payment is received if the Secretary cannot associate the payment with the taxpayer. (Sec. 1204) Authorizes a taxpayer to bring a civil damage suit against the United States if any U.S. officer or employee intentionally compromises the determination or collection of any tax due from an attorney, certified public accountant (CPA), or enrolled agent representing a taxpayer in exchange for information conveyed by the taxpayer for purposes of obtaining advice concerning tax liability, except where conveyed for the purpose of perpetrating a fraud or crime. (Sec. 1205) Mandates annual notice to each taxpayer who has a tax delinquent account. (Sec. 1206) Amends the Anti-Drug Abuse Act of 1988 to extend the termination date of certain rules relating to undercover operations. Amends the Internal Revenue Code to modify related reporting and audit requirements. (Sec. 1207) Authorizes disclosure to Federal, State, local, or foreign country governmental agencies of information in returns filed under Internal Revenue Code provisions relating to cash received in a trade or business, subject to the same conditions as apply to reports filed under provisions of Federal law relating to reports on coins and currency transactions. (Sec. 1208) Allows disclosure of returns and return information to a designee of a taxpayer on the taxpayer's request (currently, on the taxpayer's written request) for or consent to the disclosure. (Sec. 1209) Mandates a hearing, study, and report on the manner in which the IRS has implemented the netting of interest on overpayments and underpayments and on the policy and administrative implications of global netting.

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Timeline

14 September 1995
Introduced
Sponsor introductory remarks on measure. (CR E1792)
Source: IntroReferral
14 September 1995
Introduced
Introduced in House
Source: IntroReferral
14 September 1995
Introduced
Introduced in House
Source: IntroReferral
14 September 1995
Introduced
Referred to the House Committee on Ways and Means.
Source: IntroReferral
21 March 1996
Reported
Ordered to be Reported (Amended) by Voice Vote.
Source: Committee
21 March 1996
Committee
Committee Consideration and Mark-up Session Held.
Source: Committee
28 March 1996
Calendars
Placed on the Union Calendar, Calendar No. 240.
Source: Calendars
28 March 1996
Reported
Reported (Amended) by the Committee on Ways and Means. H. Rept. 104-506.
Source: Committee
28 March 1996
Reported
Reported (Amended) by the Committee on Ways and Means. H. Rept. 104-506.
Source: Committee
16 April 1996
Floor
DEBATE - The House proceeded with forty minutes of debate.
Source: Floor
16 April 1996
Floor
Mrs. Johnson (CT) moved to suspend the rules and pass the bill, as amended.
Source: Floor
16 April 1996
Passed
Motion to reconsider laid on the table Agreed to without objection.
Source: Floor
16 April 1996
Vote
On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays (2/3 required): 425 - 0 (Roll No. 119).
Source: Floor
16 April 1996
Vote
Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays (2/3 required): 425 - 0 (Roll No. 119).
Source: Floor
16 April 1996
Floor
Considered under suspension of the rules. (consideration: CR H3399-3412, H3434)
Source: Floor
16 April 1996
Floor
At the conclusion of debate, the chair put the question on the motion to suspend the rules. Mrs. Johnson (CT) objected to the vote on the grounds that a quorum was not present. Further proceedings on the motion were postponed. The point of no quorum was withdrawn.
Source: Floor
17 April 1996
Introduced
Received in the Senate. Read twice. Placed on Senate Legislative Calendar under General Orders. Calendar No. 374.
Source: Calendars
11 July 1996
Floor
Measure laid before Senate. (consideration: CR S7753-7756)
Source: Floor
11 July 1996
Passed
Passed/agreed to in Senate: Passed Senate without amendment by Unanimous Consent.
Source: Floor
25 July 1996
Floor
Presented to President.
Source: Floor
25 July 1996
President
Presented to President.
Source: President
30 July 1996
Became law
Signed by President.
Source: BecameLaw
30 July 1996
Became law
Became Public Law No: 104-168.
Source: President
30 July 1996
President
Signed by President.
Source: President

Votes

No vote records are attached yet.

Versions

Enrolled Bill · — · Download file
Public Law · 31 July 1996 · Download file
Placed on Calendar Senate · 17 April 1996 · Download file
Engrossed in House · 16 April 1996 · Download file
Reported in House · 28 March 1996 · Download file
Introduced in House · 14 September 1995 · Download file

Documents

15 official files

Enrolled Bill (text)

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Enrolled Bill (text)
Enrolled Bill · EN
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Enrolled Bill (PDF)
Enrolled Bill · EN
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Public Law (text)
Public Law · EN · 31 July 1996
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Public Law (PDF)
Public Law · EN · 31 July 1996
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Placed on Calendar Senate (text)
Placed on Calendar Senate · EN · 17 April 1996
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Placed on Calendar Senate (PDF)
Placed on Calendar Senate · EN · 17 April 1996
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Engrossed in House (text)
Engrossed in House · EN · 16 April 1996
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Engrossed in House (PDF)
Engrossed in House · EN · 16 April 1996
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Passed House amended
summary · EN · 16 April 1996
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Reported in House (text)
Reported in House · EN · 28 March 1996
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Reported in House (PDF)
Reported in House · EN · 28 March 1996
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Reported to House with amendment(s)
summary · EN · 28 March 1996
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Introduced in House (text)
Introduced in House · EN · 14 September 1995
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Introduced in House (PDF)
Introduced in House · EN · 14 September 1995
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Introduced in House
summary · EN · 14 September 1995
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Related records

related to ← Fast and Efficient Tax Filing Act
amends ← SAMDT 3962

Related across the Repo ecosystem

Direct relationships are identifier-backed. Topic context means shared TopicMembership — not a citation and not causation.

Direct relationships

Legal framework · Taxpayer Bill of Rights 2 · H.R. 2337 (104th) · US

Identifier matchPROJECTS_FROM
Same us record 104-hr-2337 projected from PoliticalRepo US row.
Taxpayer Bill of Rights 2

Sources

PoliticalRepo is an index and interpretation layer, not the authoritative legal source.

Official source: https://www.congress.gov/bill/104th-congress/house-bill/2337
Open data entity: https://api.congress.gov/v3/bill/104/hr/2337
us · 104-hr-2337 · source updated 7 April 2025