Sec. 32102. REFORM OF RULES RELATING TO QUALIFIED TAX COLLECTION CONTRACTS
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## SEC. 32102 REFORM OF RULES RELATING TO QUALIFIED TAX COLLECTION CONTRACTS ###
(a)Requirement To Collect Certain Inactive Tax Receivables Under Qualified Tax Collection Contracts **[**[26 U.S.C. 6306](/us/usc/t26/s6306)**]** Section 6306 of the Internal Revenue Code of 1986 is amended by redesignating subsections
(c)through
(f)as subsections
(d)through (g), respectively, and by inserting after subsection
(b)the following new subsection: > > ### “(c) Collection of Inactive Tax Receivables > > > #### “(1) In general > > Notwithstanding any other provision of law, the Secretary shall enter into one or more qualified tax collection contracts for the collection of all outstanding inactive tax receivables. > > > #### “(2) Inactive tax receivables > > For purposes of this section— > > > ##### “(A) In general > > The term ‘inactive tax receivable’ means any tax receivable if— > > > ###### “(i) > > at any time after assessment, the Internal Revenue Service removes such receivable from the active inventory for lack of resources or inability to locate the taxpayer, > > > ###### “(ii) > > more than ⅓ of the period of the applicable statute of limitation has lapsed and such receivable has not been assigned for collection to any employee of the Internal Revenue Service, or > > > ###### “(iii) > > in the case of a receivable which has been assigned for collection, more than 365 days have passed without interaction with the taxpayer or a third party for purposes of furthering the collection of such receivable. > > > ##### “(B) Tax receivable > > The term ‘tax receivable’ means any outstanding assessment which the Internal Revenue Service includes in potentially collectible inventory.” > . ###
(b)Certain Tax Receivables Not Eligible for Collection Under Qualified Tax Collection Contracts Section 6306 of the Internal Revenue Code of 1986, as amended by subsection (a), is amended by redesignating subsections
(d)through
(g)as subsections
(e)through (h), respectively, and by inserting after subsection
(c)the following new subsection: > > ### “(d) Certain Tax Receivables Not Eligible for Collection Under Qualified Tax Collections Contracts > > A tax receivable shall not be eligible for collection pursuant to a qualified tax collection contract if such receivable— > > > #### “(1) > > is subject to a pending or active offer-in-compromise or installment agreement, > > > #### “(2) > > is classified as an innocent spouse case, > > > #### “(3) > > involves a taxpayer identified by the Secretary as being— > > > ##### “(A) > > deceased, > > > ##### “(B) > > under the age of 18, > > > ##### “(C) > > in a designated combat zone, or > > > ##### “(D) > > a victim of tax-related identity theft, > > > #### “(4) > > is currently under examination, litigation, criminal investigation, or levy, or > > > #### “(5) > > is currently subject to a proper exercise of a right of appeal under this title.” > . ###
(c)Contracting priority **[**[26 U.S.C. 6306](/us/usc/t26/s6306)**]** Section 6306 of the Internal Revenue Code of 1986, as amended by the preceding provisions of this section, is amended by redesignating subsection
(h)as subsection
(i)and by inserting after subsection
(g)the following new subsection: > > ### “(h) Contracting Priority > > In contracting for the services of any person under this section, the Secretary shall utilize private collection contractors and debt collection centers on the schedule required under section 3711(g) of title 31, United States Code, including the technology and communications infrastructure established therein, to the extent such private collection contractors and debt collection centers are appropriate to carry out the purposes of this section.” > . ###
(d)Disclosure of Return Information **[**[26 U.S.C. 6103](/us/usc/t26/s6103)**]** Section 6103(k) of the Internal Revenue Code of 1986, as amended by section 32101, is amended by adding at the end the following new paragraph: > > #### “(12) Qualified tax collection contractors > > Persons providing services pursuant to a qualified tax collection contract under section 6306 may, if speaking to a person who has identified himself or herself as having the name of the taxpayer to which a tax receivable (within the meaning of such section) relates, identify themselves as contractors of the Internal Revenue Service and disclose the business name of the contractor, and the nature, subject, and reason for the contact. Disclosures under this paragraph shall be made only in such situations and under such conditions as have been approved by the Secretary.” > . ###
(e)Taxpayers Affected by Federally Declared Disasters **[**[26 U.S.C. 6306](/us/usc/t26/s6306)**]** Section 6306 of the Internal Revenue Code of 1986, as amended by the preceding provisions of this section, is amended by redesignating subsection
(i)as subsection
(j)and by inserting after subsection
(h)the following new subsection: > > ### “(i) Taxpayers in Presidentially Declared Disaster Areas > > The Secretary may prescribe procedures under which a taxpayer determined to be affected by a Federally declared disaster (as defined by section 165(i)(5)) may request— > > > #### “(1) > > relief from immediate collection measures by contractors under this section, and > > > #### “(2) > > a return of the inactive tax receivable to the inventory of the Internal Revenue Service to be collected by an employee thereof.” > . ###
(f)Report to Congress ####
(1)In general Section 6306 of the Internal Revenue Code of 1986, as amended by the preceding provisions of this section, is amended by redesignating subsection
(j)as subsection
(k)and by inserting after subsection
(i)the following new subsection: > > ### “(j) Report to Congress > > Not later than 90 days after the last day of each fiscal year (beginning with the first such fiscal year ending after the date of the enactment of this subsection), the Secretary shall submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate a report with respect to qualified tax collection contracts under this section which shall include— > > > #### “(1) > > annually, with respect to such fiscal year— > > > ##### “(A) > > the total number and amount of tax receivables provided to each contractor for collection under this section, > > > ##### “(B) > > the total amounts collected (and amounts of installment agreements entered into under subsection (b)(1)(B)) with respect to each contractor and the collection costs incurred (directly and indirectly) by the Internal Revenue Service with respect to such amounts, > > > ##### “(C) > > the impact of such contracts on the total number and amount of unpaid assessments, and on the number and amount of assessments collected by Internal Revenue Service personnel after initial contact by a contractor, > > > ##### “(D) > > the amount of fees retained by the Secretary under subsection
(e)and a description of the use of such funds, and > > > ##### “(E) > > a disclosure safeguard report in a form similar to that required under section 6103(p)(5), and > > > #### “(2) > > biannually (beginning with the second report submitted under this subsection)— > > > ##### “(A) > > an independent evaluation of contractor performance, and > > > ##### “(B) > > a measurement plan that includes a comparison of the best practices used by the private collectors to the collection techniques used by the Internal Revenue Service and mechanisms to identify and capture information on successful collection techniques used by the contractors that could be adopted by the Internal Revenue Service.” > . ####
(2)Repeal of existing reporting requirements with respect to qualified tax collection contracts **[**[26 U.S.C. 6306 note](/us/usc/t26/s6306)**]** Section 881 of the American Jobs Creation Act of 2004 is amended by striking subsection (e). ###
(g)Effective Dates ####
(1)In general **[**[26 U.S.C. 6306 note](/us/usc/t26/s6306)**]** The amendments made by subsections
(a)and
(b)shall apply to tax receivables identified by the Secretary after the date of the enactment of this Act. ####
(2)Contracting Priority **[**[26 U.S.C. 6306 note](/us/usc/t26/s6306)**]** The Secretary shall begin entering into contracts and agreements as described in the amendment made by subsection
(c)within 3 months after the date of the enactment of this Act. ####
(3)Disclosures **[**[26 U.S.C. 6103 note](/us/usc/t26/s6103)**]** The amendment made by subsection
(d)shall apply to disclosures made after the date of the enactment of this Act. ####
(4)Procedures; report to congress **[**[26 U.S.C. 6306 note](/us/usc/t26/s6306)**]** The amendments made by subsections
(e)and
(f)shall take effect on the date of the enactment of this Act.
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