Public Law 105-206

PUBLIC LAW 105-2064ULY 22,1998

112 STAT. 723

(6) provide for at least 16 hours of conflict management
training duringfiscal year I999 for empIoyees conducting collection activities.

TITLE 11-ELECTRONIC FILING
SEC. 2001. ELECTRONIC FILING OF TAX AND INFORMATION RETURNS.
(a) XN G

E ~ R A L . -is~the
~ poZi of Congress that(1) paperless tiling iho& be the prdened and most
c~nvenientmeans af Qing Federal tax and information returns;
( 2 ) it should be the goal of the Internal Revenue Service
to have at least 80 percent of all such returns f i b d electronicatIy
by the year 2007; and
13) the Interne1 Revenue Service should cooperate with
and encourage the private sector by encouraging competition
to rncrease eleetmhc filing of such returns.
(b) STRATEGIC
PLAN.-(I) IN GENERAL-Not later than 180 days after the date
or the enactment of t h i p Act, the Secretsq of the Treasury
or the Secreterfs delegate (hereafter in this section referred
to as the "9ecretarf'l shall establish a plan to eliminate bar-

26USC all
no"

26 USC 6011

riers, piovide incentives. and u e mmpetitive market forces
filing gradually over the next 10 years
while maintaining procasing timea for paper returns at 40
days. To the extent practicable, such plan shall pmride that
all returns re ared electronically for taxable years beHnning
f i e r 200 1 sLd'tm filed clmtmnicaIb.
(2) ELECI'RoNTC COMMCRCE ADVISORY GROUP.-TO ensure
that the Secretary receives input frum the private sectar in
the devebpmcnt and implementation of the plan requ~redby
paragraph (11, the Yecretary shaU convene an electromc commerce advisory group to include representatives from the smaLI
business community and from the tax practitioner, preparer,
and computerized tax processor communities and otber representatives from the electronic filing industry.
(c) PROMOTION
OF E L E ~ O E ~FILKNG
IC
AND J N C E ~ . Section 6011 is amended by redesi
ting subsection (fl ss subsection (g)and by inserting aRcr a u s e c t ~ o n(el the EolIowing new
to increase olcctronic

r.

subsection;
"(f1 PRo~mrorrOF ELECTKONIC
-0."(1) IN O E ~ R A L . - Secretary
T~~
is authorized to promote
thc benefits of and encuur e the use of electronrc ~ F L Xadministration programs, as they?ecOme available, through the use
of mass cornrnu~cationsaad other means.
"(2) I n ' C ~ m . - T h e Secretary may implem~nt.ptyadures to promde for the payment of appropr~ateincenhves
for electronically filed returns.".
Id) ANNUAL REPORTS.-Not later than June 30 of each calendar
year after 1998. the Chairperson of t h e Internal Revenue Service
Oversight Board, the Secretary of the Treasury, and the Chairperson of the electronic commerce advisory group established under
subsection (bI(2) shall report to the Committees on Ways and
Means, Appropriations, Government Reform and Oversight, and
Small Business of the House of Representatives and the Committees
on Finance, Appropriations, Governmental AfTairs, and Small Business of the Senate an-

Deadline
z ~ u
"Oh-

~

~

l

l

PUBLIC TAW lm5-206--JULY 22,1998

112 STAT. 724

(1) the progross of the In~ernalRevenue Service in meeting
the goal of receiving electronically 80 percent of tax nnd
infnrm~tionrelurn~
by 2007;
( 2 ) the status of the pIan required by subsection (bl;
(3) the legislative chenges necessary to assist the Internal
Revenue Service in meeting such god; and
(4the effkct9 o n small businesses and the self-employed
of electronically filing tax and information returns.

DUE DATg FOR CERTAIN IWORlUATlON FWWRML
(a) I ~ R M A T I O N R ~ T B N S
~~~mo~lc~~~.-Section
6071 (relating to time far filing returns and other documents)
is amended by redeaignating stlbsection (b) as subsection (c) and
by inserting after subsection (a) the following n m subsection:
"(b) E L B ~ O M ~ ~FUIW
W ~ IYN ~ R W T T O NR E T I T R P ~ S . - & ~ U ~ ~
made under subparts B and C of part IU of this subchapter which
are filed electronicaUy shall be tiled o n or before March 31 of
the year fallowing the calendar year t o which such returns relate.*.
(b) S
~ R EY L A ~ GTO TIME FOR P ~ o m m r ,N ~ C TO
E
RECWIENTS.-(1) IN emm-The Secretary of the Treasury shall m n duct a study evaluating the effect of extending t h e deadline
for providing sta-nts
to mans with respect to whom
information is required tu be urnished under subparts B and
C of part ID of subchapter A of chapter 61 of the Internal
Revenue Cnde of 1986 (other than section 6051 of such Code)
from Januae 31 t t t February 1 5 of the year in whicb the
return to which the statement relates is required to be bled.
(21 REWRT.-NO~
later than June 30, 1999, the Secretary
of the Treasury shall submit a report on the study under
paragcaph (1) to the Committe on Ways and Means of t h e
House of Representatives and the Committee on Finance OE
the Senate.
Ic) E F F E DATE.-The
~
amendment made by s u b s d o n (a)
ghaU apply to retwna required to be filed d e r December 31,
SEC. 3002.

r

ueadlint.

A p p l i d E ty.

ClSc 6071

note

1999.
SEC. aW3. PAPERLW ELECTRONIC -C.

(a) IN G ~ m ~ ~ ~ . - S e c t i6061
o n [relating to signing of returns
and other documents) is amended111 by striking 'Sxcept as otherwise provided by" and
inserting the following:
"(a) GEN~~RPIL
RULE.-Except ae otherwise provided by s u b
section ( b )and*; and
( 2 ) by adding a t the end the following new subsection:
"(b) ELECTRONIC
SIGNATURES."(1) IN G E ~ ' E W - T ~ Scretary
~
shalt develop procedures
for the acceptance of signatures in digital or other deckronic
form. Until such time BS such procedure8 are in place, the

Secretary may-

&(A)wmve the requirement of a signature for; or

"(B) provide for alternative methods of signing or
subscribing,
a part~cular type or class of return, declaration, statement,
o r other document r e q u i ~ dor permitted tn he made or written
under i~lternalrevenue laws and regulations.

PUBLIC LAW 105-206aLY 22, 1998

f 12 STAT.725

'(2) TREATMENT
OF ALTERNATIVE M E T H o D s . - N o ~thstad~~
ing any other provision of law, any return, declarativq d a t e
rnent, or other document filed and vorificd, signed, or subscribed
under any method adopted undw paragraph (l)(BI shall be
treated for aU purposes (bath civil and criminal, inciuding penalties for pejury) in the same manner as though signed or

subscribed.

"(3) PUBLISHED
~ U m ~ ~ c e . - T bSecretary
e
shall publish
guidance aa appropriate t o &fine and inipIement any waiver
of the signature requirements or any method adopted under
is amended to read as follows:
"(c) REGIYTEREDAND
C E R T ~MAILING;
~
ELB~ONIC
FILING.-

"(1) REGISTERED M A U . - F ~ ~ pUtp06eS 0f this section, if
a n y return, claim, statement, or other document. or payment.
i s sent by United States registered mail?A) such registration shall be prima facie evidence
that the roturn, claim, staternenf or other document was
delivered t o the agency, officer, or office to which addressed;
and
*(B)the date of registration shdi be dewned the postmark date.
' ( 2 ) CEWIFTED W ELECTROMC FILENG.--T~~
Qecretary ~ e g u l b t i ~ n ~ .
is authorized to provide by regulations thc extent to which
the provisions of paragraph (1) with respect to prima facie
evidence of delivery and the p6stmrb dab ahdl apply t o
certified mail and ele~tronicfili~g.".
(c) ESTABLISH~W
OF P R O C W ~ EFOR
S O ~ EINWRKAT~ON.R
x L ~W
CI L
In the case of taxable psriods beginning aRer December 31, 1999,
the Secretary of the Treasury or the Secretad3 delegate shall,
to thc extent practicable, establish procedures to accept, in
eiectronic form, any other information, statemenh, elections, or
schedules, from tmpayers filing r e t u r p s ekectronically, so that such
taxpayers will not be r e q u i d to Me any paper.
(dl TNTERNET A V A L U W L M Y . - ~the case of taxable periods P ~ ~ U A T S .
beginning after December 31, 1998, the Secretary o f the Treasury E2sC78a5
or the Secretarfs delegate aholl ostabIish pmcedwee for all tax
forms, instructions, and publications created in the most recent
5-year period to be made available ulectronically on the Internet
in a searchable database at approximately the same time such
records are available to the ublic in papcr farm. In addition,
la the case of tarsble periods gebinning after December 31, 1998,
the Qecretary of the Treasury or the Secretary's delcgate s h d ,
to the extent practicable. establish procedures for other taxpayer
guidance to be made available electronically on the Intcrnet ia
a searchable database at approximately the same tune such p i d nnce is available to the public in paper lorn.
(e) PRWEDURG FOR AUTHORBWG D~SCLOSURE
ELECTRONI- 26 USC 6103
C A L L Y . - T ~ ~ Secretary shall establish procedures far any taxpayer
to authorize, on an electronically fded return, the Secretary i o
disclose information under section 61 03(c> of the Internal Revenue
Code of 1986 t o the preparer of the return.
(i) EFFECTIVED x T E . - ' ~ ~amendments made by this section 2~uscsost
note
shall take effcct on t h e date of the enactment of this Act.

PUBLIC LAW 105206-JULY 22,1998

112 STAT. 726
26 USC 6012

SEC,aoaa- RETURN-FREE TAX SYSTEM-

mk.

(a1 IN GENERAL.-T~~
Secretary of the Treasury o r the Secretary's delegate shall develop pmcdures for the implementation
of a return-free tax system under which appropriate individuals
would be permitted to comply with the Internal Revenue Code
of I986 without making the return required under section 6012
of such Code for taxable years beginning after 2007.
( b ) REPORT.-NO~
later than June 30 of each calendar year
after 1999, the Secr~taryshall report to the Cornmittee on Ways
and Means of the House of Representatives and the Committee
on Finance of the Senate on(1)what additional resources the Intemd Revenue Service
would need to implement such a system;
( 2 ) the changes to the Internal Revenue Code of 1986
that could enhane the use of such a system;
(3) the procedures developed pursuant to subsection la);

Proeedums.

Deadline.

and

(4) the number and classes of taxpayers that would be
permitted to use the procedures developed pursuant to subsection (a).
Deadlines.

26 USC 6103

SEC. 2006. ACCESS TO ACCOUNT m R M A T I O N .

(a) IN GENERAL.-NO~
later than December 31, 2006, the Seeretary of the Treasurg or the S m t
s delegate shall develop
pmceduree under which a taxpayer fi ing returns electrodcdy
(and their design- under aection 6103(c) of the Lntecnal Revenue
Code of 1986) would be able to review the taxpayer's account
electronically, but only if all necessary safeguards to ensure the
privac d such amount information are in place.

I

~ J R E ~ O R T . - - N O later
~
than December 31. 2003, the Secretary
of the Treasury shall report on the p r o g r s s the Secretary is making
on the development of procedures under subsection (a) to the
Committee on Ways; and Means of the House of Representatives
and the Committee on Finance of the Senate.
Taxpayer Bin of
Rights 3.

26 USC 1 note.

TITLE 111-TAXPAYER PROTECTION AND
RIGHTS
SEC. 3000.SHOAT TITLE.

This title may be cited as the Taxpayer Bill of Rights 3".

Subtitle A-Burden of Proof
SEC. 3001. BURDEN OF PROOF.

(a) IN GENE-w.-Chapter 76 (relating to juhcial proceedings)
is amended by adding at the end the following new subchapter:
'Subchapter &Burden
"SH. 7491. Burden of proof

"SEC. 7491. BURDEN OF PROOF.

of Proof