Vote to pass a bill that ends the Internal Revenue Service's (IRS) practice of hiring private collection agencies to collect taxes, makes it more difficult for taxpayers to renounce their U.S. citizenship to avoid taxes, and increases penalties for incorrect tax information returns.
Abolishes laws that allow the IRS to hire private companies for the purpose of collecting taxes (Sec. 2[a]).
Provides that contracts made before July 18, 2007 may be retained, but cannot be renewed (Sec. 2[c]).
Moves the enactment date of the requirement that all levels of government withhold 3% of the payment of all contracts from January 1, 2010 to Jan 1, 2011 (Sec. 3).
Establishes that all property of an expatriate, with the exceptions of deferred compensation items, specified tax deferred accounts, and interest in a nongrantor trust, will be treated as having been sold on the day before the expatriation for its fair market value with any gain exceeding $600,000 classified as taxable income (Sec. 5 [a]).
Permits a deferment of this tax until the due date of the tax return if adequate security is provided (Sec. 5 [a]).
Provides that the payer of certain deferred compensation items to expatriates withhold 30 percent of the payment for tax purposes (Sec. 5 [a]).
Provides that 30 percent of the payment of nongrantor trusts to expatriates be withheld for tax purposes (Sec. 5 [a]).
Imposes a tax on gifts or bequests received by a United States citizen or resident from an expatriate, applicable to the extent that the gift or bequest exceeds $10,000 (Sec. 5 [b]).
Repeals a period of suspension of interest and penalties for taxpayers who have underpaid their taxes but have not been notified of their underpayment by the IRS (Sec. 6).
Increases penalties for failing to file correct tax information returns (Sec. 7).