# Pub. L. 104-168: changes to the Internal Revenue Code 1996-07-30, 110 Stat. 1477. Source: . ## Legislative history - Bill: [H.R. 2337](https://www.congress.gov/bill/104th-congress/house-bill/2337) - House report: [H. Rept. 104-506](https://www.govinfo.gov/content/pkg/CRPT-104hrpt506/html/CRPT-104hrpt506.htm) ## § 501: Exemption from tax on corporations, certain trusts, etc. - § 501(c)(4): Pub. L. 104–168 designated existing provisions as subpar. (A) and added subpar. (B). ## § 4955: Taxes on political expenditures of section 501(c)(3) organizations - § 4955(e): Pub. L. 104–168 substituted “sections 4945 and 4958” for “section 4945” in heading and inserted “or an excess benefit for purposes of section 4958” before period at end of text. ## § 4958: Taxes on excess benefit transactions - Enacted 26 U.S.C. § 4958. ## § 4963: Definitions - § 4963(a), § 4963(b), § 4963(c): Pub. L. 104–168 inserted “4958,” after “4955,”. ## § 6013: Joint returns of income tax by husband and wife - § 6013(b)(2): Pub. L. 104–168 redesignated subpars. (B) to (E) as (A) to (D), respectively, and struck out former subpar. (A) which read as follows: “unless there is paid in full at or before the time of the filing of the joint return the amount shown as tax upon such joint return; or”. ## § 6033: Returns by exempt organizations - § 6033(b)(10), § 6033(b)(11), § 6033(b)(12), § 6033(b)(13), § 6033(b)(14): Pub. L. 104–168, § 1312(a), added pars. (10) to (13) and redesignated former par. (10) as (14). - § 6033(f), § 6033(g): Pub. L. 104–168, § 1312(b), added subsec. (f) and redesignated former subsec. (f) as (g). ## § 6041: Information at source - § 6041(d)(1): Pub. L. 104–168 substituted “name, address, and phone number of the information contact” for “name and address”. ## § 6041A: Returns regarding payments of remuneration for services and direct sales - § 6041A(e)(1): Pub. L. 104–168 substituted “name, address, and phone number of the information contact” for “name and address”. ## § 6042: Returns regarding payments of dividends and corporate earnings and profits - § 6042(c)(1): Pub. L. 104–168 substituted “name, address, and phone number of the information contact” for “name and address”. ## § 6044: Returns regarding payments of patronage dividends - § 6044(e)(1): Pub. L. 104–168 substituted “name, address, and phone number of the information contact” for “name and address”. ## § 6045: Returns of brokers - § 6045(b)(1): Pub. L. 104–168 substituted “name, address, and phone number of the information contact” for “name and address”. ## § 6049: Returns regarding payments of interest - § 6049(c)(1)(A): Pub. L. 104–168 substituted “name, address, and phone number of the information contact” for “name and address”. ## § 6050B: Returns relating to unemployment compensation - § 6050B(b)(1): Pub. L. 104–168 substituted “name, address, and phone number of the information contact” for “name and address”. ## § 6050H: Returns relating to mortgage interest received in trade or business from individuals - § 6050H(d)(1): Pub. L. 104–168 substituted “name, address, and phone number of the information contact” for “name and address”. ## § 6050I: Returns relating to cash received in trade or business, etc. - § 6050I(e)(1): Pub. L. 104–168 substituted “name, address, and phone number of the information contact” for “name and address”. ## § 6050J: Returns relating to foreclosures and abandonments of security - § 6050J(e): Pub. L. 104–168 substituted “name, address, and phone number of the information contact” for “name and address”. ## § 6050K: Returns relating to exchanges of certain partnership interests - § 6050K(b)(1): Pub. L. 104–168 substituted “name, address, and phone number of the information contact” for “name and address”. ## § 6050N: Returns regarding payments of royalties - § 6050N(b)(1): Pub. L. 104–168 substituted “name, address, and phone number of the information contact” for “name and address”. ## § 6103: Confidentiality and disclosure of returns and return information - § 6103(c): Pub. L. 104–168, § 1207, substituted “request for or consent to such disclosure” for “written request for or consent to such disclosure”. - § 6103(e)(8): Pub. L. 104–168, § 403(a), added par. (8). - § 6103(e)(9): Pub. L. 104–168, § 902(a), added par. (9). - § 6103(i)(8): Pub. L. 104–168, § 1206(b)(1), struck out par. (8) which read as follows: - § 6103(l)(15): Pub. L. 104–168, § 1206(a), added par. (15). - § 6103(p)(3)(A): Pub. L. 104–168, § 1206(b)(2), substituted “or (7)(A)(ii)” for “(7)(A)(ii), or (8)” and “(14), or (15)” for “or (14)”. - § 6103(p)(4): Pub. L. 104–168, § 1206(b)(3)(B), which directed amendment of introductory provisions of par. (4) by substituting “(i)(3)(B)(i),” for “(i)(3)(B)(i), or (8)”, was executed by making the substitution for “(i)(3)(B)(i) or (8)” to reflect the probable intent of Congress. - § 6103(p)(4): Pub. L. 104–168, § 1206(b)(3)(A), (C), substituted “or (5)” for “(5), or (8)” and “(9), (12), or (15)” for “(9), or (12)” in introductory provisions. - § 6103(p)(4)(F)(ii): Pub. L. 104–168, § 1206(b)(4), substituted “or (5)” for “(5), or (8)” and “(14), or (15)” for “or (14)”. ## § 6104: Publicity of information required from certain exempt organizations and certain trusts - § 6104: Pub. L. 104–168, § 1313(a)(1), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “During the 3-year period beginning on the filing date, a copy of the annual return filed under section 6033 (relating to returns by exempt organizations) by any organization to which this paragraph applies shall be made available by such organization for inspection during regular business hours by any individual at the principal office of the organization and, if such organization regularly maintains 1 or more regional or district offices having 3 or more employees, at each such regional or district office.” - § 6104: Pub. L. 104–168, § 1313(a)(2), inserted before the period at end “(and, upon request of an individual made at such principal office or such a regional or district office, a copy of the material requested to be available for inspection under this subparagraph shall be provided (in accordance with the last sentence of paragraph (1)(A)) to such individual without charge other than reasonable fee for any reproduction and mailing costs)”. - § 6104: Pub. L. 104–168, § 1313(a)(3), added par. (3). ## § 6159: Agreements for payment of tax liability in installments - § 6159(b)(3): Pub. L. 104–168, § 201(b), amended par. (3) generally. Prior to amendment, par. (3) read as follows: - § 6159(b)(5): Pub. L. 104–168, § 201(a), added par. (5). - § 6159(c): Pub. L. 104–168, § 202(a), added subsec. (c). ## § 6201: Assessment authority - § 6201(d), § 6201(e): Pub. L. 104–168 added subsec. (d) and redesignated former subsec. (d) as (e). ## § 6213: Restrictions applicable to deficiencies; petition to Tax Court - § 6213(e): Pub. L. 104–168 inserted “4958 (relating to private excess benefit),” before “4971”. ## § 6323: Validity and priority against certain persons - § 6323(j): Pub. L. 104–168 added subsec. (j). ## § 6334: Property exempt from levy - § 6334(a)(2): Pub. L. 104–168, § 502(a), substituted “So” for “If the taxpayer is the head of a family, so”, “the taxpayer’s household” for “his household”, and “$2,500” for “$1,650 ($1,550 in the case of levies issued during 1989)”. - § 6334(a)(3): Pub. L. 104–168, § 502(b), substituted “$1,250” for “$1,100 ($1,050 in the case of levies issued during 1989)”. - § 6334(f): Pub. L. 104–168, § 502(c), added subsec. (f). ## § 6343: Authority to release levy and return property - § 6343(d): Pub. L. 104–168 added subsec. (d). ## § 6404: Abatements - § 6404(e): Pub. L. 104–168, § 301(b), substituted “Abatement of interest attributable to unreasonable errors” for “Assessments of interest attributable to errors” in heading. - § 6404(e)(1)(A), § 6404(e)(1)(B): Pub. L. 104–168, § 301(a), inserted “unreasonable” before “error” and substituted “in performing a ministerial or managerial act” for “in performing a ministerial act”. - § 6404(g): Pub. L. 104–168, § 302(a), added subsec. (g). - § 6404(g)(1): Pub. L. 104–168, § 701(c)(3), substituted “section 7430(c)(4)(A)(ii)” for “section 7430(c)(4)(A)(iii)”. ## § 6503: Suspension of running of period of limitation - § 6503(j): Pub. L. 104–168, § 1002(c), which directed that subsec. (k) be redesignated as (j), could not be executed, because that subsection was redesignated (j) by Pub. L. 101–508, § 11801(c)(20)(A). See 1990 Amendment note below. - § 6503(j)(1): Pub. L. 104–168, § 1002(b), which directed substitution of “to a corporation (or to any other person to whom the corporation has transferred records) with respect to any return of tax by such corporation for a taxable year (or other period) for which such corporation is being examined under the coordinated examination program (or any successor program) of the Internal Revenue Service” for “with respect to any return of tax by a corporation” in subsec. (k)(1), was executed by making the substitution in subsec. (j)(1) to reflect the probable intent of Congress and the amendment by Pub. L. 101–508, § 11801(c)(20)(A), which redesignated subsec. (k) as (j). See 1990 Amendment note below. - § 6503(j)(2)(A): Pub. L. 104–168, § 1002(a), which directed addition of cl. (i) and redesignation of former cls. (i) and (ii) as (ii) and (iii), respectively, in subsec. (k)(2)(A), was executed by making the amendment in subsec. (j)(2)(A) to reflect the probable intent of Congress and the amendment by Pub. L. 101–508, § 11801(c)(20)(A), which redesignated subsec. (k) as (j). See 1990 Amendment note below. - § 6503(k): Pub. L. 104–168, § 1002(c), which directed that subsec. (k) be redesignated as (j), could not be executed, because that subsection was redesignated (j) by Pub. L. 101–508, § 11801(c)(20)(A). See 1990 Amendment note below. - § 6503: Pub. L. 104–168, § 1002(c), which directed that subsec. (l) be redesignated as (k), could not be executed, because that subsection was redesignated (k) by Pub. L. 104–188, § 1702(h)(17). See above and see Effective Date of 1996 Amendments note below. ## § 6601: Interest on underpayment, nonpayment, or extensions of time for payment, of tax - § 6601(e)(2)(A): Pub. L. 104–168, § 303(b)(1), substituted “21 calendar days from the date of notice and demand therefor (10 business days if the amount for which such notice and demand is made equals or exceeds $100,000)” for “10 days from the date of notice and demand therefor”. - § 6601(e)(3): Pub. L. 104–168, § 303(a), substituted “specified period” for “10 days” in heading and amended text generally. Prior to amendment, text read as follows: “If notice and demand is made for payment of any amount, and if such amount is paid within 10 days after the date of such notice and demand interest under this section on the amount so paid shall not be imposed for the period after the date of such notice and demand.” ## § 6651: Failure to file tax return or to pay tax - § 6651(a)(3): Pub. L. 104–168, § 303(b)(2), substituted “21 calendar days from the date of notice and demand therefor (10 business days if the amount for which such notice and demand is made equals or exceeds $100,000)” for “10 days of the date of the notice and demand therefor”. - § 6651(g): Pub. L. 104–168, § 1301(a), added subsec. (g). ## § 6652: Failure to file certain information returns, registration statements, etc. - § 6652(c)(1)(A): Pub. L. 104–168 in concluding provisions, substituted “$20” for “$10” and “$10,000” for “$5,000” and inserted at end “In the case of an organization having gross receipts exceeding $1,000,000 for any year, with respect to the return required under section 6033 for such year, the first sentence of this subparagraph shall be applied by substituting ‘$100’ for ‘$20’ and, in lieu of applying the second sentence of this subparagraph, the maximum penalty under this subparagraph shall not exceed $50,000.” ## § 6656: Failure to make deposit of taxes - § 6656(c): Pub. L. 104–168, § 304(a), added subsec. (c). - § 6656(c)(1): Pub. L. 104–168, § 701(c)(3), substituted “section 7430(c)(4)(A)(ii)” for “section 7430(c)(4)(A)(iii)”. - § 6656(d): Pub. L. 104–168, § 304(a), added subsec. (d). ## § 6672: Failure to collect and pay over tax, or attempt to evade or defeat tax - § 6672(b), § 6672(c): Pub. L. 104–168, § 901(a), added subsec. (b) and redesignated former subsec. (b) as (c). - § 6672(d): Pub. L. 104–168, § 903(a), added subsec. (d). - § 6672(e): Pub. L. 104–168, § 904(a), added subsec. (e). ## § 6685: Assessable penalty with respect to public inspection requirements for certain tax-exempt organizations - § 6685: Pub. L. 104–168 substituted “$5,000” for “$1,000”. ## § 7122: Compromises - § 7122(b): Pub. L. 104–168 substituted “$50,000. However, such compromise shall be subject to continuing quality review by the Secretary.” for “$500.” ## § 7213: Unauthorized disclosure of information - § 7213(a)(2): Pub. L. 104–168 substituted “(12), or (15)” for “or (12)”. ## § 7422: Civil actions for refund - § 7422(g)(2), § 7422(g)(3): Pub. L. 104–168 inserted “4958,” after “4955,”. ## § 7430: Awarding of costs and certain fees - § 7430(b)(1): Pub. L. 104–168, § 703(a), inserted at end “Any failure to agree to an extension of the time for the assessment of any tax shall not be taken into account for purposes of determining whether the prevailing party meets the requirements of the preceding sentence.” - § 7430(b)(3), § 7430(b)(4): Pub. L. 104–168, § 704(a), redesignated par. (4) as (3) and struck out former par. (3) which read as follows: - § 7430(c)(1): Pub. L. 104–168, § 702(a)(3), inserted closing provisions “In the case of any calendar year beginning after 1996, the dollar amount referred to in clause (iii) shall be increased by an amount equal to such dollar amount multiplied by the cost-of-living adjustment determined under section 1(f)(3) for such calendar year, by substituting ‘calendar year 1995’ for ‘calendar year 1992’ in subparagraph (B) thereof. If any dollar amount after being increased under the preceding sentence is not a multiple of $10, such dollar amount shall be rounded to the nearest multiple of $10.” - § 7430(c)(1)(B)(iii): Pub. L. 104–168, § 702(a)(1), (2), substituted “$110” for “$75” and struck out “an increase in the cost of living or” before “a special factor,”. - § 7430(c)(2)(B): Pub. L. 104–168, § 701(c)(1), substituted “paragraph (4)(C)” for “paragraph (4)(B)”. - § 7430(c)(4)(A): Pub. L. 104–168, § 701(a), redesignated cls. (ii) and (iii) as (i) and (ii), respectively, and struck out former cl. (i) which read as follows: “which establishes that the position of the United States in the proceeding was not substantially justified,”. - § 7430(c)(4)(B): Pub. L. 104–168, § 701(b), added subpar. (B). Former subpar. (B) redesignated (C). - § 7430(c)(4)(C): Pub. L. 104–168, § 701(c)(2), substituted “Any determination under this paragraph” for “Any determination under subparagraph (A)”. - § 7430(c)(4)(C): Pub. L. 104–168, § 701(b), redesignated subpar. (B) as (C). ## § 7433: Civil damages for certain unauthorized collection actions - § 7433(b): Pub. L. 104–168, § 801(a), substituted “$1,000,000” for “$100,000”. - § 7433(d)(1): Pub. L. 104–168, § 802(a), amended par. (1) generally. Prior to amendment, par. (1) read as follows: ## § 7434: Civil damages for fraudulent filing of information returns - Enacted 26 U.S.C. § 7434. ## § 7435: Civil damages for unauthorized enticement of information disclosure - Enacted 26 U.S.C. § 7435. ## § 7437: Cross references ## § 7454: Burden of proof in fraud, foundation man­ager, and transferee cases - § 7454(b): Pub. L. 104–168 inserted “or whether an organization manager (as defined in section 4958(f)(2)) has ‘knowingly’ participated in an excess benefit transaction (as defined in section 4958(c)),” after “section 4912(b),”. ## § 7502: Timely mailing treated as timely filing and paying - § 7502(f): Pub. L. 104–168 added subsec. (f). ## § 7524: Annual notice of tax delinquency - Enacted 26 U.S.C. § 7524. ## § 7608: Authority of internal revenue enforcement officers - § 7608(c)(4)(B)(ii): Pub. L. 104–168, § 1205(c)(1)(A), (B), struck out “preceding the period” after “in the 1-year period” and “and” at end. - § 7608(c)(4)(B)(iii), § 7608(c)(4)(B)(iv): Pub. L. 104–168, § 1205(c)(1)(C), added cls. (iii) and (iv) and struck out former cl. (iii) which read as follows: “the number, by programs, of undercover investigative operations closed in the 1-year period preceding the period for which such report is submitted and, with respect to each such closed undercover operation, the results obtained and any civil claims made with respect thereto.” - § 7608(c)(5)(C): Pub. L. 104–168, § 1205(c)(2), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “The terms ‘undercover investigative operation’ and ‘undercover operation’ mean any undercover investigative operation of the Service— - § 7608(c): Pub. L. 104–168, § 1205(b), added par. (6). ## § 7609: Special procedures for third-party summonses - § 7609(a)(3): Pub. L. 104–168 added subpar. (I). ## § 7623: Expenses of detection of underpayments and fraud, etc. - § 7623: Pub. L. 104–168 substituted “of underpayments and fraud, etc.” for “and punishment of frauds” in section catchline and amended text generally. Prior to amendment, text read as follows: “The Secretary, under regulations prescribed by the Secretary, is authorized to pay such sums, not exceeding in the aggregate the sum appropriated therefor, as he may deem necessary for detecting and bringing to trial and punishment persons guilty of violating the internal revenue laws, or conniving at the same, in cases where such expenses are not otherwise provided for by law.” ## § 7802: Internal Revenue Service Oversight Board - § 7802: Pub. L. 104–168, § 101(b)(2), substituted “Commissioners; Taxpayer Advocate.” for “Commissioner (Employee Plans and Exempt Organizations)” in section catchline. - § 7802(d): Pub. L. 104–168, § 101(a), added subsec. (d). ## § 7805: Rules and regulations - § 7805(b): Pub. L. 104–168 struck out “or rulings” after “regulations” in heading and amended text generally. Prior to amendment, text read as follows: “The Secretary may prescribe the extent, if any, to which any ruling or regulation, relating to the internal revenue laws, shall be applied without retroactive effect.” ## § 7811: Taxpayer Assistance Orders - § 7811(a): Pub. L. 104–168, § 101(b)(1), substituted “the Office of the Taxpayer Advocate” for “the Office of the Ombudsman” and substituted “Taxpayer Advocate” for “Ombudsman” in two places. - § 7811(b): Pub. L. 104–168, § 102(a)(1), inserted “within a specified time period” after “the Secretary”. - § 7811(b)(2): Pub. L. 104–168, § 102(a)(2), inserted “take any action as permitted by law,” after “cease any action,”. - § 7811(b)(2)(D): Pub. L. 104–168, § 101(b)(1)(B), substituted “Taxpayer Advocate” for “Ombudsman”. - § 7811(c): Pub. L. 104–168, § 102(b), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “Any Taxpayer Assistance Order issued by the Ombudsman under this section may be modified or rescinded only by the Ombudsman, a district director, a service center director, a compliance center director, a regional director of appeals, or any superior of any such person.” - § 7811(d)(2), § 7811(f): Pub. L. 104–168, § 101(b)(1)(B), substituted “Taxpayer Advocate” for “Ombudsman” wherever appearing.