IRS Restructuring and Reform Act of 1998 (P.L. 105-206)

Sec. 3412. Limitation on financial status audit techniques.

Sec. 3413. Software trade secrets protection.

Sec. 3414. Threat of audit prohibited to coerce tip reporting alternative commitment agreements.

Sec. 3415. Taxpayers allowed motion to quash all third-party summonses.

Sec. 3416. Service of summonses to third-party recordkeepers permitted by mail.

Sec. 3417. Notice of Internal Revenue Service contact of third parties.

Sec. 3432. Release of levy upon agreement that amount is uncollectible.

Sec. 3433. Levy prohibited during pendency of refund proceedings.

Sec. 3434. Approval required for jeopardy and termination assessments and jeopardy levies.

Sec. 3435. Increase in amount of certain property on which lien not valid.

Sec. 3436. Waiver of early withdrawal tax for Internal Revenue Service levies on employer-sponsored retirement plans or IRAs.

Sec. 3442. Accounting of sales of seized property.

Sec. 3443. Uniform asset disposal mechanism.

Sec. 3444. Codification of Internal Revenue Service administrative procedures for seizure of taxpayer's property.

Sec. 3445. Procedures for seizure of residences and businesses.

Sec. 3462. Offers-in-compromise.

Sec. 3463. Notice of deficiency to specify deadlines for filing Tax Court petition.

Sec. 3464. Refund or credit of overpayments before final determination.

Sec. 3465. Internal Revenue Service procedures relating to appeals of examinations and collections.

Sec. 3466. Application of certain fair debt collection procedures.

Sec. 3467. Guaranteed availability of installment agreements.

Sec. 3468. Prohibition on requests to taxpayers to give up rights to bring actions.

(2) eliminate or substantially modify the existing organization of the Internal Revenue Service which is based on a national, regional, and district structure;

(3) establish organizational units serving particular groups of taxpayers with similar needs; and

(4) ensure an independent appeals function within the Internal Revenue Service, including the prohibition in the plan of ex parte communications between appeals officers and other Internal Revenue Service employees to the extent that such communications appear to compromise the independence of the appeals officers.

(2) CONTINUING EFFECT OF LEGAL DOCUMENTS.--All orders, determinations, rules, regulations, permits, agreements, grants, contracts, certificates, licenses, registrations, privileges, and other administrative actions--

(4) SUITS NOT AFFECTED.--The provisions of this section shall not affect suits commenced before the effective date of this section, and in all such suits, proceedings shall be had, appeals taken, and judgments rendered in the same manner and with the same effect as if this section had not been enacted.

(5) NONABATEMENT OF ACTIONS.--No suit, action, or other proceeding commenced by or against the Department of the Treasury (or any administrative unit of the Department, including the Internal Revenue Service), or by or against any individual in the official capacity of such individual as an officer of the Department of the Treasury, shall abate by reason of the enactment of this section.

(6) ADMINISTRATIVE ACTIONS RELATING TO PROMULGATION OF REGULATIONS.--Any administrative action relating to the preparation or promulgation of a regulation by the Department of the Treasury (or any administrative unit of the Department, including the Internal Revenue Service) relating to a function transferred or affected by the reorganization under this section may be continued by the Department of the Treasury through any appropriate administrative unit of the Department, including the Internal Revenue Service with the same effect as if this section had not been enacted.

'(5) REMOVAL.--

'(3) REPORTS.--

'(7) a member of the Internal Revenue Service Oversight Board.'.

(2) The table of sections for subchapter A of chapter 80 is amended by striking the item relating to section 7802 and inserting the following new item:

(2) INITIAL NOMINATIONS TO INTERNAL REVENUE SERVICE OVERSIGHT BOARD.--The President shall submit the initial nominations under section 7802 of the Internal Revenue Code of 1986, as added by this section, to the Senate not later than 6 months after the date of the enactment of this Act.

(3) EFFECT ON ACTIONS PRIOR TO APPOINTMENT OF OVERSIGHT BOARD.--Nothing in this section shall be construed to invalidate the actions and authority of the Internal Revenue Service prior to the appointment of the members of the Internal Revenue Service Oversight Board.

'(3) CONSULTATION WITH BOARD.--The Commissioner shall consult with the Oversight Board on all matters set forth in paragraphs (2) and (3) (other than paragraph (3)(A)) of section 7802(d).

'(2) DUTIES.--The Chief Counsel shall be the chief law officer for the Internal Revenue Service and shall perform such duties as may be prescribed by the Secretary, including the duty--

'(3) PERSONS TO WHOM CHIEF COUNSEL REPORTS.--The Chief Counsel shall report directly to the Commissioner of Internal Revenue, except that--

'(4) CHIEF COUNSEL PERSONNEL.--All personnel in the Office of Chief Counsel shall report to the Chief Counsel.

'(4) OPERATION OF LOCAL OFFICES.--

(3) The headings of subsections (e) and (f) of section 7811 are each amended by striking 'TAXPAYER ADVOCATE' and inserting 'NATIONAL TAXPAYER ADVOCATE'.

(3) Section 7611(f)(1) (relating to restrictions on church tax inquiries and examinations) is amended by striking 'Assistant Commissioner for Employee Plans and Exempt Organizations of the Internal Revenue Service' and inserting 'Secretary'.

(2) CHIEF COUNSEL.--Section 7803(b)(3) of the Internal Revenue Code of 1986, as added by this section, shall take effect on the date that is 90 days after the date of the enactment of this Act.

(3) NATIONAL TAXPAYER ADVOCATE.--Notwithstanding section 7803(c)(1)(B)(iv) of such Code, as added by this section, in appointing the first National Taxpayer Advocate after the date of the enactment of this Act, the Secretary of the Treasury--

'(4) The Secretary of the Treasury may not exercise any power under paragraph (1) or (2) with respect to the Treasury Inspector General for Tax Administration.'.

(2) DUTIES OF INSPECTOR GENERAL OF THE DEPARTMENT OF THE TREASURY; RELATIONSHIP TO THE TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION.--Section 8D(b) of such Act is amended--

'(3) The Secretary of the Treasury shall establish procedures under which the Inspector General of the Department of the Treasury and the Treasury Inspector General for Tax Administration will--

(5) REPEAL OF LIMITATION ON REPORTS TO THE ATTORNEY GENERAL.--Section 8D of such Act is amended by striking subsection (g).

(6) TRANSMISSION OF REPORTS.--Section 8D(h) of such Act is amended--

(7) TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION.--Section 8D of the Act is amended by adding at the end the following new subsections:

'(2) during the 5-year period following the date such individual ends service in such position.

(3) RETENTION OF CERTAIN INTERNAL AUDIT PERSONNEL.--In making the transfer under the amendment made by paragraph (1), the Commissioner of Internal Revenue shall designate and retain an appropriate number (not in excess of 300) of internal audit full-time equivalent employee positions necessary for management relating to the Internal Revenue Service.

(4) ADDITIONAL PERSONNEL TRANSFERS.--Effective 180 days after the date of the enactment of this Act, the Secretary of the Treasury shall transfer 21 full-time equivalent positions from the Office of the Inspector General of the Department of the Treasury to the Office of the Treasury Inspector General for Tax Administration.

(2) AMENDMENTS RELATING TO REFERENCES TO THE INSPECTOR GENERAL OF THE DEPARTMENT OF THE TREASURY.--

'(2) DETAIL OF PERSONNEL FROM FIELD SERVICE.--The Commissioner may order any such person engaged in field work to duty in the District of Columbia, for such periods as the Commissioner may prescribe, and to any designated post of duty outside the District of Columbia upon the completion of such duty.

(2) The table of sections for subchapter A of chapter 80 is amended by striking the item relating to section 7804 and inserting the following new item:

'(2) by an applicable person for disclosure of return or return information under section 6103 if such request is made in accordance with the requirements of such section; or

'(3) by the Secretary of the Treasury as a consequence of the implementation of a change in tax policy.

'(2) any individual (other than the Attorney General of the United States) serving in a position specified in section 5312 of title 5, United States Code.'.

'Sec. 9502. Pay authority for critical positions.

'Sec. 9503. Streamlined critical pay authority.

'Sec. 9504. Recruitment, retention, relocation incentives, and relocation expenses.

'Sec. 9505. Performance awards for senior executives.

'Sec. 9506. Limited appointments to career reserved Senior Executive Service positions.

'Sec. 9507. Streamlined demonstration project authority.

'Sec. 9508. General workforce performance management system.

'Sec. 9509. General workforce classification and pay.

'Sec. 9510. General workforce staffing.

'(2) provisions relating to preference eligibles;

'(3) except as otherwise specifically provided, section 5307 (relating to the aggregate limitation on pay);

'(4) except as otherwise specifically provided, chapter 71 (relating to labor-management relations); and

'(5) subject to subsections (b) and (c) of section 1104, as though such authorities were delegated to the Secretary of the Treasury under section 1104(a)(2).

'(3) the number of such positions does not exceed 40 at any one time;

'(4) designation of such positions are approved by the Secretary of the Treasury;

'(5) the terms of such appointments are limited to no more than 4 years;

'(6) appointees to such positions were not Internal Revenue Service employees prior to June 1, 1998;

'(7) total annual compensation for any appointee to such positions does not exceed the highest total annual compensation payable at the rate determined under section 104 of title 3; and

'(8) all such positions are excluded from the collective bargaining unit.

'(2) a limited emergency appointee or a limited term appointee--

'(1) develop a plan for such project which describes its purpose, the employees to be covered, the project itself, its anticipated outcomes, and the method of evaluating the project;';

'(2) section 4703(b)(3) shall not apply;

'(3) the 180-day notification period in section 4703(b)(4) shall be deemed to be a notification period of 30 days;

'(4) section 4703(b)(6) shall be deemed to read as follows:

'(6) provides each House of Congress with the final version of the plan.';

'(5) section 4703(c)(1) shall be deemed to read as follows:

'(1) subchapter V of chapter 63 or subpart G of part III of this title;';

'(6) the requirements of paragraphs (1)(A) and (2) of section 4703(d) shall not apply; and

'(7) notwithstanding section 4703(d)(1)(B), based on an evaluation as provided in section 4703(h), the Office of Personnel Management and the Secretary of the Treasury, except as otherwise provided by this subsection, may waive the termination date of a demonstration project under section 4703(d).

'(3) Except as otherwise provided under this section, employees under a broad-banded system shall continue to be subject to the laws and regulations covering employees under the pay system that otherwise would apply to such employees.

'(4) The criteria to be prescribed by the Office of Personnel Management shall, at a minimum--

'(3) Within each quality category established under paragraph (1), preference eligibles shall be listed ahead of individuals who are not preference eligibles. For other than scientific and professional positions at or higher than GS-9 (or equivalent), preference eligibles who have a compensable service-connected disability of 10 percent or more, and who meet the minimum qualification standards, shall be listed in the highest quality category.

'(4) An appointing authority may select any applicant from the highest quality category or, if fewer than three candidates have been assigned to the highest quality category, from a merged category consisting of the highest and second highest quality categories.

'(5) Notwithstanding paragraph (4), the appointing authority may not pass over a preference eligible in the same or higher category from which selection is made unless the requirements of section 3317(b) or 3318(b), as applicable, are satisfied.

'(2) any obligation under a court order or decree relating to the employment practices of the Internal Revenue Service or the Department of the Treasury.'.

(2) an employee having a disability on the basis of which such employee is or would be eligible for disability retirement under the applicable retirement system referred to in paragraph (1);

(3) an employee who is in receipt of a specific notice of involuntary separation for misconduct or unacceptable performance;

(4) an employee who, upon completing an additional period of service as referred to in section 3(b)(2)(B)(ii) of the Federal Workforce Restructuring Act of 1994 (5 U.S.C. 5597 note), would qualify for a voluntary separation incentive payment under section 3 of such Act;

(5) an employee who has previously received any voluntary separation incentive payment by the Federal Government under this section or any other authority and has not repaid such payment;

(6) an employee covered by statutory reemployment rights who is on transfer to another organization; or

(7) any employee who, during the 24-month period preceding the date of separation, has received a recruitment or relocation bonus under section 5753 of title 5, United States Code, or who, within the 12-month period preceding the date of separation, received a retention allowance under section 5754 of title 5, United States Code.

(2) AMOUNT AND TREATMENT OF PAYMENTS.--A voluntary separation incentive payment--

(2) DEFINITION.--In paragraph (1), the term 'final basic pay', with respect to an employee, means the total amount of basic pay which would be payable for a year of service by such employee, computed using the employee's final rate of basic pay, and, if last serving on other than a full-time basis, with appropriate adjustment therefor.

(2) USE OF VOLUNTARY SEPARATIONS.--The Internal Revenue Service may redeploy or use the full-time equivalent positions vacated by voluntary separations under this section to make other positions available to more critical locations or more critical occupations.

(2) providing a false statement under oath with respect to a material matter involving a taxpayer or taxpayer representative;

(3) with respect to a taxpayer, taxpayer representative, or other employee of the Internal Revenue Service, the violation of--

(5) assault or battery on a taxpayer, taxpayer representative, or other employee of the Internal Revenue Service, but only if there is a criminal conviction, or a final judgment by a court in a civil case, with respect to the assault or battery;

(6) violations of the Internal Revenue Code of 1986, Department of Treasury regulations, or policies of the Internal Revenue Service (including the Internal Revenue Manual) for the purpose of retaliating against, or harassing, a taxpayer, taxpayer representative, or other employee of the Internal Revenue Service;

(7) willful misuse of the provisions of section 6103 of the Internal Revenue Code of 1986 for the purpose of concealing information from a congressional inquiry;

(8) willful failure to file any return of tax required under the Internal Revenue Code of 1986 on or before the date prescribed therefor (including any extensions), unless such failure is due to reasonable cause and not to willful neglect;

(9) willful understatement of Federal tax liability, unless such understatement is due to reasonable cause and not to willful neglect; and

(10) threatening to audit a taxpayer for the purpose of extracting personal gain or benefit.

(2) DISCRETION.--The exercise of authority under paragraph (1) shall be at the sole discretion of the Commissioner of Internal Revenue and may not be delegated to any other officer. The Commissioner of Internal Revenue, in his sole discretion, may establish a procedure which will be used to determine whether an individual should be referred to the Commissioner of Internal Revenue for a determination by the Commissioner under paragraph (1).

(3) NO APPEAL.--Any determination of the Commissioner of Internal Revenue under this subsection may not be appealed in any administrative or judicial proceeding.

(2) to impose or suggest production quotas or goals with respect to such employees.

(2) detail a schedule for training and the fiscal years during which the training will occur;

(3) detail the funding of the program and relevant information to demonstrate the priority and commitment of resources to the plan;

(4) review the organizational design of customer service;

(5) provide for the implementation of a performance development system; and

(6) provide for at least 16 hours of conflict management training during fiscal year 1999 for employees conducting collection activities.

(2) it should be the goal of the Internal Revenue Service to have at least 80 percent of all such returns filed electronically by the year 2007; and

(3) the Internal Revenue Service should cooperate with and encourage the private sector by encouraging competition to increase electronic filing of such returns.

(2) ELECTRONIC COMMERCE ADVISORY GROUP.--To ensure that the Secretary receives input from the private sector in the development and implementation of the plan required by paragraph (1), the Secretary shall convene an electronic commerce advisory group to include representatives from the small business community and from the tax practitioner, preparer, and computerized tax processor communities and other representatives from the electronic filing industry.

'(2) INCENTIVES.--The Secretary may implement procedures to provide for the payment of appropriate incentives for electronically filed returns.'.

(2) the status of the plan required by subsection (b);

(3) the legislative changes necessary to assist the Internal Revenue Service in meeting such goal; and

(4) the effects on small businesses and the self-employed of electronically filing tax and information returns.

(2) REPORT.--Not later than June 30, 1999, the Secretary of the Treasury shall submit a report on the study under paragraph (1) to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate.

'(3) PUBLISHED GUIDANCE.--The Secretary shall publish guidance as appropriate to define and implement any waiver of the signature requirements or any method adopted under paragraph (1).'.

(2) the changes to the Internal Revenue Code of 1986 that could enhance the use of such a system;

(3) the procedures developed pursuant to subsection (a); and

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

'(2) LIMITATIONS.--Paragraph (1) shall apply with respect to an issue only if--

(2) TAXABLE PERIODS OR EVENTS AFTER DATE OF ENACTMENT.--In any case in which there is no examination, such amendments shall apply to court proceedings arising in connection with taxable periods or events beginning or occurring after such date of enactment.

(2) AWARD OF HIGHER ATTORNEY'S FEES BASED ON COMPLEXITY OF ISSUES.--Clause (iii) of section 7430(c)(1)(B) (relating to the award of costs and certain fees) is amended by inserting 'the difficulty of the issues presented in the case, or the local availability of tax expertise,' before 'justifies a higher rate'.

'(1) REQUIREMENT THAT ADMINISTRATIVE REMEDIES BE EXHAUSTED.--A judgment for damages shall not be awarded under subsection (b) unless the court determines that the plaintiff has exhausted the administrative remedies available to such plaintiff within the Internal Revenue Service.'.

'(3) PAYMENT AUTHORITY.--Claims pursuant to this section shall be payable out of funds appropriated under section 1304 of title 31, United States Code.'.

'(2) REMEDY TO BE EXCLUSIVE.--

(2) The table of sections for part II of subchapter C of chapter 76 is amended by striking '$10,000' in the item relating to section 7463 and inserting '$50,000'.

'(2) ESTATES TO WHICH SUBSECTION APPLIES.--This subsection shall apply to any estate if, as of the date the action is filed--

'(4) SUBSTITUTION OF VALUE.--If a certificate of discharge is issued to any person under section 6325(b)(4) with respect to any property, such person may, within 120 days after the day on which such certificate is issued, bring a civil action against the United States in a district court of the United States for a determination of whether the value of the interest of the United States (if any) in such property is less than the value determined by the Secretary. No other action may be brought by such person for such a determination.'.

(2) FORM OF RELIEF.--

(3) SUSPENSION OF RUNNING OF STATUTE OF LIMITATION.--Subsection (f) of section 6503 is amended to read as follows:

'(2) WRONGFUL LIEN.--In the case of any assessment for which a lien was made on any property, the running of the period under section 6502 shall be suspended for a period equal to the period beginning on the date any person becomes entitled to a certificate under section 6325(b)(4) with respect to such property and ending on the date which is 30 days after the earlier of--

'(2) if such individual is eligible to elect the application of subsection (c), such individual may, in addition to any election under paragraph (1), elect to limit such individual's liability for any deficiency with respect to such joint return in the manner prescribed under subsection (c). Any determination under this section shall be made without regard to community property laws.

'(3) UNDERSTATEMENT.--For purposes of this subsection, the term 'understatement' has the meaning given to such term by section 6662(d)(2)(A).

'(2) BURDEN OF PROOF.--Except as provided in subparagraph (A)(ii) or (C) of paragraph (3), each individual who elects the application of this subsection shall have the burden of proof with respect to establishing the portion of any deficiency allocable to such individual.

'(3) ELECTION.--

'(2) SEPARATE TREATMENT OF CERTAIN ITEMS.--If a deficiency (or portion thereof) is attributable to--

'(3) ALLOCATION OF ITEMS GIVING RISE TO THE DEFICIENCY.--For purposes of this subsection--

'(5) CHILD'S LIABILITY.--If the liability of a child of a taxpayer is included on a joint return, such liability shall be disregarded in computing the separate liability of either spouse and such liability shall be allocated appropriately between the spouses.

'(3) APPLICABLE RULES.-

'(2) relief is not available to such individual under subsection (b) or (c), the Secretary may relieve such individual of such liability.

'(2) regulations providing the opportunity for an individual to have notice of, and an opportunity to participate in, any administrative proceeding with respect to an election made under subsection (b) or (c) by the other individual filing the joint return.'.

(2) Subparagraph (A) of section 6230(c)(5) is amended by striking 'section 6013(e)' and inserting 'section 6015'.

(3) Section 7421(a) is amended by inserting '6015(d),' after 'sections'.

(2) 2-YEAR PERIOD.--The 2-year period under subsection (b)(1)(E) or (c)(3)(B) of section 6015 of the Internal Revenue Code of 1986 shall not expire before the date which is 2 years after the date of the first collection activity after the date of the enactment of this Act.

'(2) FINANCIALLY DISABLED.--

(2) SPECIAL RULE.--The amendments made by this section shall apply to interest for periods beginning before the date of the enactment of this Act if the taxpayer--

'(2) TIME FOR MAKING DESIGNATION.--A person may make a designation under paragraph (1) only during the 90-day period beginning on the date of a notice that a penalty under subsection (a) has been imposed for the specified tax period to which the deposit relates.'.

'(2) such failure--

(2) APPLICATION TO CURRENT LIABILITIES.--The amendment made by subsection (c) shall apply to deposits required to be made after December 31, 2001.

'(2) EXCEPTIONS.--Paragraph (1) shall not apply to--

(2) Paragraph (3) of section 6672(b) is amended by inserting 'or delivered in person' after 'mailed' each place it appears.

'(2) PRESIDENTIALLY DECLARED DISASTER AREA.--For purposes of paragraph (1), the term 'Presidentially declared disaster area' means, with respect to any taxpayer, any area which the President has determined warrants assistance by the Federal Government under the Disaster Relief and Emergency Assistance Act.'.

(2) The amendments made by subsections (a) and (b) of this section shall only take effect upon the transmittal by the President to the Congress of a message designating the provisions of subsections (a) and (b) as an emergency requirement pursuant to section 252(e) of the Balanced Budget and Emergency Deficit Control Act.

'(2) TIME AND METHOD FOR NOTICE.--The notice required under paragraph (1) shall be--

'(3) INFORMATION INCLUDED WITH NOTICE.--The notice required under paragraph (1) shall include in simple and nontechnical terms--

'(2) ONE HEARING PER PERIOD.--A person shall be entitled to only one hearing under this section with respect to the taxable period to which the unpaid tax specified in subsection (a)(3)(A) relates.

'(3) IMPARTIAL OFFICER.--The hearing under this subsection shall be conducted by an officer or employee who has had no prior involvement with respect to the unpaid tax specified in subsection (a)(3)(A) before the first hearing under this section or section 6330. A taxpayer may waive the requirement of this paragraph.

'(4) COORDINATION WITH SECTION 6330.--To the extent practicable, a hearing under this section shall be held in conjunction with a hearing under section 6330.

'Part II. Levy.

'(2) TIME AND METHOD FOR NOTICE.--The notice required under paragraph (1) shall be--

'(3) INFORMATION INCLUDED WITH NOTICE.--The notice required under paragraph (1) shall include in simple and nontechnical terms--

'(2) ONE HEARING PER PERIOD.--A person shall be entitled to only one hearing under this section with respect to the taxable period to which the unpaid tax specified in subsection (a)(3)(A) relates.

'(3) IMPARTIAL OFFICER.--The hearing under this subsection shall be conducted by an officer or employee who has had no prior involvement with respect to the unpaid tax specified in subsection (a)(3)(A) before the first hearing under this section or section 6320. A taxpayer may waive the requirement of this paragraph.

'(2) ISSUES AT HEARING.--

'(2) JURISDICTION RETAINED AT IRS OFFICE OF APPEALS.--The Internal Revenue Service Office of Appeals shall retain jurisdiction with respect to any determination made under this section, including subsequent hearings requested by the person who requested the original hearing on issues regarding--

'(2) LEVY UPON APPEAL.--Paragraph (1) shall not apply to a levy action while an appeal is pending if the underlying tax liability is not at issue in the appeal and the court determines that the Secretary has shown good cause not to suspend the levy.

'(2) the Secretary has served a levy on a State to collect a Federal tax liability from a State tax refund, this section shall not apply, except that the taxpayer shall be given the opportunity for the hearing described in this section within a reasonable period of time after the levy.

'(4) any proceeding under section 6320 or 6330, and'.

(2) AUTHORITY TO MAKE DECISIONS.--Section 7443(c) (relating to authority to make court decisions) is amended by striking 'or (3)' and inserting '(3), or (4)'.

'(2) LIMITATIONS.--Paragraph (1) may only be asserted in--

'(2) any software and related materials which are provided to the Secretary under this title shall be subject to the safeguards under subsection (c).

'(2) PROTECTION OF SOFTWARE.--Notwithstanding any other provision of this section, and in addition to any protections ordered pursuant to paragraph (1), in the case of software that comes into the possession or control of the Secretary in the course of any examination with respect to any taxpayer--

'(2) COMPUTER SOFTWARE SOURCE CODE.--The term 'computer software source code' means--

'(5) RELATED PERSON.--A person shall be treated as related to another person if such persons are related persons under section 267 or 707(b).

'(6) TAX-RELATED COMPUTER SOFTWARE SOURCE CODE.--The term 'tax-related computer software source code' means the computer source code for any computer software program intended for accounting, tax return preparation or compliance, or tax planning.'.

(2) SOFTWARE PROTECTION.--In the case of any software acquired on or before such date of enactment, the requirements of section 7612(a)(2) of the Internal Revenue Code of 1986 (as added by such amendments) shall apply after the 90th day after such date. The preceding sentence shall not apply to the requirement under section 7612(c)(2)(G)(ii) of such Code (as so added).

(2) Subsection (c) of section 7609 is amended to read as follows:

'(2) EXCEPTIONS.--This section shall not apply to any summons--

(3) Paragraph (2) of section 7609(e) is amended by striking 'third-party recordkeeper's' and all that follows through 'subsection (f)' and inserting 'summoned party's response to the summons'.

(4) Subsection (f) of section 7609 is amended--

(6)(A) Subsection (i) of section 7609 is amended by striking 'THIRD-PARTY RECORDKEEPER AND' in the subsection heading.

'(2) THIRD-PARTY RECORDKEEPER.--For purposes of paragraph (1), the term 'third-party recordkeeper' means--

'(2) NOTICE OF SPECIFIC CONTACTS.--The Secretary shall periodically provide to a taxpayer a record of persons contacted during such period by the Secretary with respect to the determination or collection of the tax liability of such taxpayer. Such record shall also be provided upon request of the taxpayer.

'(3) EXCEPTIONS.--This subsection shall not apply--

(2) appropriate disciplinary action would be taken against the employee or supervisor where the procedures under paragraph (1) were not followed.

(2) verified that a balance is due; and

(3) affirmed that the action proposed to be taken is appropriate given the taxpayer's circumstances, considering the amount due and the value of the property or right to property.

(2) AUTOMATED COLLECTION SYSTEM ACTIONS.--In the case of any action under an automated collection system, this section shall apply to actions initiated after December 31, 2000.

(2) by striking '1996' in subparagraph (B) and inserting '1998'.

'(6) PENDENCY OF PROCEEDING.--For purposes of this subsection, a proceeding is pending beginning on the date such proceeding commences and ending on the date that a final order or judgment from which an appeal may be taken is entered in such proceeding.'.

'(4) COST-OF-LIVING ADJUSTMENT.--In the case of notices of liens imposed by section 6321 which are filed in any calendar year after 1998, each of the dollar amounts under paragraph (4) or (7) of subsection (b) shall be increased by an amount equal to--

(2) by striking ', evidenced by a passbook,'; and

(3) by striking all that follows 'secured by such account' and inserting a period.

'For provision providing for civil damages for violation of paragraph (1)(A)(i), see section 7433.'.

'(2) the amount from such sale applied to the taxpayer's liability; and

'(3) the remaining balance of such liability.'.

'(2) ELEMENTS IN INVESTIGATION.--For purposes of paragraph (1), an investigation of the status of any property shall include--

(2) CONSTRUCTION.--Paragraph (1) shall not be construed to invalidate or in any way prejudice any assertion that the privilege embodied in permits described in paragraph (1) is not property or a right to property under the Internal Revenue Code of 1986.

'(2) if--

(2) PRIOR REQUEST.--If, in any request to extend the period of limitations made on or before December 31, 1999, a taxpayer agreed to extend such period beyond the 10-year period referred to in section 6502(a) of the Internal Revenue Code of 1986, such extension shall expire on the latest of--

'(2) ALLOWANCES FOR BASIC LIVING EXPENSES.--

'(2) INSTALLMENT AGREEMENTS.--No levy may be made under subsection (a) on the property or rights to property of any person with respect to any unpaid tax--

'(2) which allow a taxpayer to appeal any rejection of such offer or agreement to the Internal Revenue Service Office of Appeals.'.

(2) CONFORMING AMENDMENT.--Section 6159 (relating to installment agreements) is amended by adding at the end the following new subsection:

(2) provide notice to taxpayers that in the case of a compromise terminated due to the actions of one spouse or former spouse, the Internal Revenue Service will, upon application, reinstate such compromise with the spouse or former spouse who remains in compliance with such compromise; and

(3) provide notice to the taxpayer that the taxpayer may appeal the rejection of an offer-in-compromise to the Internal Revenue Service Office of Appeals.

(2) SUSPENSION OF COLLECTION BY LEVY.--The amendment made by subsection (b) shall apply to offers-in-compromise pending on or made after December 31, 1999.

(2) by striking 'to enjoin any action or proceeding' and inserting 'to enjoin any action or proceeding or order any refund'.

'(6) As to overpayments the Secretary is authorized to refund or credit pending appeal as provided in subsection (b).'.

'(2) if the Secretary knows the taxpayer is represented by any person authorized to practice before the Internal Revenue Service with respect to such unpaid tax and has knowledge of, or can readily ascertain, such person's name and address, unless such person fails to respond within a reasonable period of time to a communication from the Secretary or unless such person consents to direct communication with the taxpayer; or

'(3) at the taxpayer's place of employment if the Secretary knows or has reason to know that the taxpayer's employer prohibits the taxpayer from receiving such communication.

'(2) The use of obscene or profane language or language the natural consequence of which is to abuse the hearer or reader.

'(3) Causing a telephone to ring or engaging any person in telephone conversation repeatedly or continuously with intent to annoy, abuse, or harass any person at the called number.

'(4) Except as provided under rules similar to the rules in section 804 of the Fair Debt Collection Practices Act (15 U.S.C. 1692b), the placement of telephone calls without meaningful disclosure of the caller's identity.

'(2) the taxpayer (and, if such liability relates to a joint return, the taxpayer's spouse) has not, during any of the preceding 5 taxable years--

'(4) the agreement requires full payment of such liability within 3 years; and

'(5) the taxpayer agrees to comply with the provisions of this title for the period such agreement is in effect.'.

(2) the request by the officer or employee is made in person and the taxpayer's attorney or other federally authorized tax practitioner (within the meaning of section 7525(a)(3)(A) of the Internal Revenue Code of 1986) is present, or the request is made in writing to the taxpayer's attorney or other representative.

'(3) DELETIONS FOR CHIEF COUNSEL ADVICE.--In the case of Chief Counsel advice open to public inspection pursuant to this section--

(2) Paragraphs (1)(B) and (2) of section 6110(j)(1), as redesignated by this section, are amended by striking 'subsection (g)' each place it appears and inserting 'subsection (g) or (i)(4)(B)'.

(3) Section 6110(k)(1)(B), as so redesignated, is amended by striking 'subsection (c)' and inserting 'subsection (c)(1) or (i)(3)'.

(2) TRANSITION RULES.--The amendments made by this section shall apply to any Chief Counsel advice issued after December 31, 1985, and before the 91st day after the date of the enactment of this Act by the offices of the associate chief counsel for domestic, employee benefits and exempt organizations, and international, except that any such Chief Counsel advice shall be treated as made available on a timely basis if such advice is made available for public inspection not later than the following dates:

(4) CHIEF COUNSEL ADVICE TO BE AVAILABLE ELECTRONICALLY.--The Internal Revenue Service shall make any Chief Counsel advice issued more than 90 days after the date of the enactment of this Act and made available for public inspection pursuant to section 6110 of such Code, as amended by this section, also available by computer telecommunications within 1 year after issuance.

'(2) LIMITATION ON ANNUAL GRANTS TO A CLINIC.--The aggregate amount of grants which may be made under this section to a clinic for a year shall not exceed $100,000.

'(3) MULTI-YEAR GRANTS.--Upon application of a qualified low-income taxpayer clinic, the Secretary is authorized to award a multi-year grant not to exceed 3 years.

'(4) CRITERIA FOR AWARDS.--In determining whether to make a grant under this section, the Secretary shall consider--

(2) in paragraph (4), by striking 'or (14)' and inserting ', (14), or (17)' in the matter preceding subparagraph (A); and

(3) in paragraph (4)(F)(ii), by striking 'or (15)' and inserting ', (15), or (17)'.

(2) any other correspondence or notice received by a taxpayer from the Internal Revenue Service shall include in a prominent manner a telephone number that the taxpayer may contact; and

(3) an Internal Revenue Service employee shall give a taxpayer during a telephone or personal contact the employee's name and unique identifying number.

(2) SUBSECTION (c).--Subsection (c) shall take effect on January 1, 2000.

(3) SUBSECTION (d).--Subsection (d) shall take effect on January 1, 2000.

(4) UNIQUE IDENTIFYING NUMBER.--Any requirement under this section to provide a unique identifying number shall take effect 6 months after the date of the enactment of this Act.

(2) such use is approved by the employee's supervisor before the pseudonym is used.

(2) in the case of any such designation made on or before the date of the enactment of this Act--

'(2) OFFSET PERMITTED ONLY AGAINST RESIDENTS OF STATE SEEKING OFFSET.--Paragraph (1) shall apply to an overpayment by any person for a taxable year only if the address shown on the Federal return for such taxable year of the overpayment is an address within the State seeking the offset.

'(3) PRIORITIES FOR OFFSET.--Any overpayment by a person shall be reduced pursuant to this subsection--

'(4) NOTICE; CONSIDERATION OF EVIDENCE.--No State may take action under this subsection until such State--

'(6) REGULATIONS.--The Secretary shall issue regulations prescribing the time and manner in which States must submit notices of past-due, legally enforceable State income tax obligations and the necessary information that must be contained in or accompany such notices. The regulations shall specify the types of State income taxes and the minimum amount of debt to which the reduction procedure established by paragraph (1) may be applied. The regulations may require States to pay a fee to reimburse the Secretary for the cost of applying such procedure. Any fee paid to the Secretary pursuant to the preceding sentence shall be used to reimburse appropriations which bore all or part of the cost of applying such procedure.

'(7) ERRONEOUS PAYMENT TO STATE.--Any State receiving notice from the Secretary that an erroneous payment has been made to such State under paragraph (1) shall pay promptly to the Secretary, in accordance with such regulations as the Secretary may prescribe, an amount equal to the amount of such erroneous payment (without regard to whether any other amounts payable to such State under such paragraph have been paid to such State).'.

(2) The heading for paragraph (10) is amended by striking 'SECTION 6402(c) OR 6402(d)' AND INSERTING 'SUBSECTION (c), (d), OR (e) OF SECTION 6402'.

(2) Paragraph (2) of section 6402(d) is amended by striking 'and before such overpayment' and inserting 'and before such overpayment is reduced pursuant to subsection (e) and before such overpayment'.

(3) Subsection (f) of section 6402, as redesignated by subsection (a), is amended--

(3) in clause (iv) (as so redesignated), by inserting 'and' at the end.

(2) Subsection (e) of section 6050S is amended by inserting '(without regard to subsection (g)(2) thereof)' after 'section 25A'.

'(2) JOINT REVIEWS.--Before June 1 of each calendar year after 1998 and before 2004, there shall be a joint review of the strategic plans and budget for the Internal Revenue Service and such other matters as the Chairman of the Joint Committee deems appropriate. Such joint review shall be held at the call of the Chairman of the Joint Committee and shall include two members of the majority and one member of the minority from each of the Committees on Finance, Appropriations, and Governmental Affairs of the Senate, and the Committees on Ways and Means, Appropriations, and Government Reform and Oversight of the House of Representatives.'.

(2) Subsection (f) of such section shall take effect on the date of the enactment of this Act.

'(5) 28-PERCENT RATE GAIN.--For purposes of this subsection, the term '28-percent rate gain' means the excess (if any) of--

(3) Clauses (i) and (ii) of section 1(h)(7)(A) are amended to read as follows:

'(13) SPECIAL RULES.--

(2) SUBSECTION (a)(5).--The amendments made by subsection (a)(5) shall take effect on January 1, 1998.

(2) TRADE ACT OF 1974.--

(4) NAFTA.--Section 202(n) of the North American Free Trade Agreement Implementation Act (19 U.S.C. 3332(n)) is amended by striking 'most-favored-nation'.

(5) URUGUAY ROUND AGREEMENTS ACT.--Section 135(a)(2) of the Uruguay Round Agreements Act (19 U.S.C. 3555(a)(2)) is amended by striking 'most-favored-nation' and inserting 'normal trade relations'.

(6) SEED ACT.--Section 2(c)(11) of the Support for East European Democracy (SEED) Act of 1989 (22 U.S.C. 5401(c)(11)) is amended--

'(2) REDUCTION OF CREDIT TO TAXPAYER SUBJECT TO ALTERNATIVE MINIMUM TAX.--The credit determined under this subsection for the taxable year shall be reduced by the excess (if any) of--

'(2) COORDINATION WITH OTHER CREDITS.--The amount of the credit under this subsection shall reduce the amount of the credits otherwise allowable under subpart A for the taxable year (determined after the application of section 26), but the amount of the credit under this subsection (and such reduction) shall not be taken into account in determining the amount of any other credit allowable under this part.'.

'(3) except as provided in regulations, which is engaged in a trade or business and, in the course of which, receives from any individual interest aggregating $600 or more for any calendar year on one or more qualified education loans, shall make the return described in subsection (b) with respect to the individual at such time as the Secretary may by regulations prescribe.'.

(3) Subparagraph (A) of section 201(c)(2) of the 1997 Act is amended to read as follows:

(2) Subsection (d) of section 221 of the 1986 Code is amended by adding at the end the following new sentence: 'Such 60 months shall be determined in the manner prescribed by the Secretary in the case of multiple loans which are refinanced by, or serviced as, a single loan and in the case of loans incurred before the date of the enactment of this section.'.

'(3) ELIGIBLE EDUCATIONAL INSTITUTION.--The term 'eligible educational institution' has the meaning given such term by section 529(e)(5).'.

(2) Subparagraph (A) of section 529(c)(3) of the 1986 Code is amended by striking 'section 72(b)' and inserting 'section 72'.

(3) Paragraph (2) of section 529(e) of the 1986 Code is amended to read as follows:

'(2) MEMBER OF FAMILY.--The term 'member of the family' means, with respect to any designated beneficiary--

(2)(A) Section 530(b)(1)(E) of the 1986 Code (defining education individual retirement account) is amended to read as follows:

(3)(A) Paragraph (1) of section 530(d) of the 1986 Code is amended by striking 'section 72(b)' and inserting 'section 72'.

(4) Paragraph (2) of section 135(d) of the 1986 Code is amended to read as follows:

'(2) COORDINATION WITH OTHER HIGHER EDUCATION BENEFITS.--The amount of the qualified higher education expenses otherwise taken into account under subsection (a) with respect to the education of an individual shall be reduced (before the application of subsection (b)) by--

'(1) IN GENERAL.--In the case of education individual retirement accounts maintained for the benefit of any one beneficiary, the term 'excess contributions' means the sum of--

(2) Clause (iv) of section 170(e)(6)(B) of the 1986 Code is amended by striking 'organization or entity' and inserting 'donee'.

(3) Subclause (I) of section 170(e)(6)(C)(ii) of the 1986 Code is amended by striking 'an entity' and inserting 'a donee'.

(4) Section 170(e)(6)(F) of the 1986 Code (relating to termination) is amended by striking '1999' and inserting '2000'.

(2) Section 1397E(d)(4)(B) of the 1986 Code is amended by striking 'local education agency as defined' and inserting 'local educational agency as defined'.

(3) Section 1397E is amended by adding at the end the following new subsection:

(5) Subparagraph (D) of section 42(j)(4) of the 1986 Code is amended by striking 'subpart A, B, D, or G of this part' and inserting 'this chapter'.

(6) Paragraph (4) of section 49(b) of the 1986 Code is amended by striking 'subpart A, B, D, or G' and inserting 'this chapter'.

(7) Subparagraph (C) of section 50(a)(5) of the 1986 Code is amended by striking 'subpart A, B, D, or G' and inserting 'this chapter'.

(2) Section 408A(c)(3) of the 1986 Code (relating to limits based on modified adjusted gross income) is amended--

'(4) AGGREGATION AND ORDERING RULES.--

(6)(A) Section 408A(d) of the 1986 Code (relating to distribution rules) is amended by adding at the end the following new paragraph:

'(6) TAXPAYER MAY MAKE ADJUSTMENTS BEFORE DUE DATE.--

'(7) DUE DATE.--For purposes of this subsection, the due date for any taxable year is the date prescribed by law (including extensions of time) for filing the taxpayer's return for such taxable year.'.

(8)(A) Section 4973(f) of the 1986 Code is amended--

'(2) contributions to any such pension or account shall not be taken into account for purposes of subsection (c)(2)(B).'.

'(4) ADJUSTED NET CAPITAL GAIN.--For purposes of this subsection, the term 'adjusted net capital gain' means net capital gain reduced (but not below zero) by the sum of--

'(9) QUALIFIED 5-YEAR GAIN.--For purposes of this subsection, the term 'qualified 5-year gain' means the aggregate long-term capital gain from property held for more than 5 years. The determination under the preceding sentence shall be made without regard to collectibles gain, gain described in paragraph (7)(A)(i), and section 1202 gain.

'(10) COORDINATION WITH RECAPTURE OF NET ORDINARY LOSSES UNDER SECTION 1231.--If any amount is treated as ordinary income under section 1231(c), such amount shall be allocated among the separate categories of net section 1231 gain (as defined in section 1231(c)(3)) in such manner as the Secretary may by forms or regulations prescribe.

'(11) REGULATIONS.--The Secretary may prescribe such regulations as are appropriate (including regulations requiring reporting) to apply this subsection in the case of sales and exchanges by pass-thru entities and of interests in such entities.

'(12) PASS-THRU ENTITY DEFINED.--For purposes of this subsection, the term 'pass-thru entity' means--

'(3) MAXIMUM RATE OF TAX ON NET CAPITAL GAIN OF NONCORPORATE TAXPAYERS.--The amount determined under the first sentence of paragraph (1)(A)(i) shall not exceed the sum of--

(3) Section 57(a)(7) of the 1986 Code is amended by adding at the end the following new sentence: 'In the case of stock the holding period of which begins after December 31, 2000 (determined with the application of the last sentence of section 1(h)(2)(B)), the preceding sentence shall be applied by substituting '28 percent' for '42 percent'.'.

(4) Paragraphs (11) and (12) of section 1223, and section 1235(a), of the 1986 Code are each amended by striking '1 year' each place it appears and inserting '18 months'.

'(2) SPECIAL RULES FOR JOINT RETURNS.--In the case of a husband and wife who make a joint return for the taxable year of the sale or exchange of the property--

'(1) IN GENERAL.--In the case of a sale or exchange to which this subsection applies, the ownership and use requirements of subsection (a), and subsection (b)(3), shall not apply; but the dollar limitation under paragraph (1) or (2) of subsection (b), whichever is applicable, shall be equal to--

'(5) CERTAIN RULES TO APPLY.--Rules similar to the rules of subsections (f), (g), (h), (i), (j), and (k) of section 1202 shall apply.'.

(2) by striking the portion of such subsection preceding the table in paragraph (1) and inserting the following:

'(2) ALLOCATION OF INCREASE.--Any increase under paragraph (1) for any calendar year shall apply only to generation-skipping transfers made during or after such calendar year; except that no such increase for calendar years after the calendar year in which the transferor dies shall apply to transfers by such transferor.'.

(2) Subsection (f) of section 501 of the 1997 Act is amended by inserting '(other than the amendment made by subsection (d))' after 'this section'.

'(2) MAXIMUM DEDUCTION.--The deduction allowed by this section shall not exceed $675,000.

'(3) COORDINATION WITH UNIFIED CREDIT.--

'(3) INCLUDIBLE GIFTS OF INTERESTS.--The amount of the gifts of qualified family-owned business interests determined under this paragraph is the sum of--

(3)(A) Section 2057(e)(2)(C) of the 1986 Code (as so redesignated) is amended by striking '(as defined in section 543(a))' and inserting '(as defined in section 543(a) without regard to paragraph (2)(B) thereof) if such trade or business were a corporation'.

(4) Paragraph (2) of section 2057(f) of the 1986 Code (as so redesignated) is amended--

'For purposes of the preceding sentence, a decedent shall be treated as engaged in a trade or business if any member of the decedent's family is engaged in such trade or business.'.

(6) Paragraph (1) of section 2057(g) of the 1986 Code (as so redesignated) is amended by striking 'or (M)'.

(7) Paragraph (3) of section 2057(i) of the 1986 Code (as so redesignated) is amended by redesignating subparagraphs (L), (M), and (N) as subparagraphs (N), (O), and (P), respectively, and by inserting after subparagraph (K) the following new subparagraphs:

(2)(A) Paragraph (9) of section 6501(c) of the 1986 Code is amended by striking the last sentence.

'(2) FINAL DETERMINATION.--For purposes of paragraph (1), a value shall be treated as finally determined for purposes of chapter 12 if--

'(2) an increase in taxable gifts required under section 2701(d), the value thereof shall, for purposes of computing the tax under this chapter, be the value as finally determined (within the meaning of section 2001(f)(2)) for purposes of this chapter.'.

(2) Section 641 of the 1986 Code is amended by striking subsection (c) and by redesignating subsection (d) as subsection (c).

(3) Paragraph (4) of section 1361(e) of the 1986 Code is amended by striking 'section 641(d)' and inserting 'section 641(c)'.

(4) Subparagraph (A) of section 6103(e)(1) of the 1986 Code is amended by striking clause (ii) and by redesignating clauses (iii) and (iv) as clauses (ii) and (iii), respectively.

'(9) TREATMENT OF EASEMENTS GRANTED AFTER DEATH.--In any case in which the qualified conservation easement is granted after the date of the decedent's death and on or before the due date (including extensions) for filing the return of tax imposed by section 2001, the deduction under section 2055(f) with respect to such easement shall be allowed to the estate but only if no charitable deduction is allowed under chapter 1 to any person with respect to the grant of such easement.'.

(2) The first sentence of paragraph (6) of section 2031(c) of the 1986 Code is amended by striking all that follows 'shall be made' and inserting 'on or before the due date (including extensions) for filing the return of tax imposed by section 2001 and shall be made on such return.'.

'(5) TREATMENT OF DC ZONE TERMINATION.--The termination of the designation of the DC Zone shall be disregarded for purposes of determining whether any property is a DC Zone asset.'.

(2) Paragraph (6) of section 1400B(b) of the 1986 Code is amended by striking '(4)(A)(ii)' and inserting '(4)(A)(i) or (ii)'.

(3) Section 1400B(c) of the 1986 Code is amended by striking 'entity which is an'.

(4) Section 1400B(d)(2) of the 1986 Code is amended by inserting 'as determined on the basis of the 1990 census' after 'percent'.

(2) Paragraph (1) of section 1400C(c) of the 1986 Code is amended to read as follows:

'(1) IN GENERAL.--The term 'first-time homebuyer' means any individual if such individual (and if married, such individual's spouse) had no present ownership interest in a principal residence in the District of Columbia during the 1-year period ending on the date of the purchase of the principal residence to which this section applies.'.

(3) Subparagraph (B) of section 1400C(e)(2) of the 1986 Code is amended by inserting before the period 'on the date the taxpayer first occupies such residence'.

(4) Paragraph (3) of section 1400C(e) of the 1986 Code is amended by striking all that follows 'principal residence' and inserting 'on the date such residence is purchased.'.

(5) Subsection (i) of section 1400C of the 1986 Code is amended to read as follows:

(7) Subparagraph (C) of section 25(e)(1) of the 1986 Code is amended by striking 'section 23' and inserting 'sections 23 and 1400C'.

(2) EFFECTIVE DATE.--The second sentence of section 7704(g)(3)(C) of the 1986 Code (as added by paragraph (1)) shall apply to taxable years beginning after the date of the enactment of this Act.

(3) Subparagraph (D) of section 475(f)(1) of the 1986 Code is amended by adding at the end the following new sentence: 'Subsection (d)(3) shall not apply under the preceding sentence for purposes of applying sections 1402 and 7704.'.

(4) Subparagraph (C) of section 1001(d)(3) of the 1997 Act is amended by striking 'within the 30-day period beginning on' and inserting 'before the close of the 30th day after'.

(2) Subparagraph (A) of section 355(e)(3) of the 1986 Code is amended--

'(2) SPECIAL RULE FOR SECTION 355.--If the requirements of section 355 (or so much of section 356 as relates to section 355) are met with respect to a distribution described in paragraph (1), then, solely for purposes of determining the tax treatment of the transfers of property to the controlled corporation by the distributing corporation, the fact that the shareholders of the distributing corporation dispose of part or all of the distributed stock shall not be taken into account in determining control for purposes of this section.'.

(2) Subsection (b) of section 304 of the 1986 Code is amended by adding at the end the following new paragraph:

'(6) AVOIDANCE OF MULTIPLE INCLUSIONS, ETC.--In the case of any acquisition to which subsection (a) applies in which the acquiring corporation or the issuing corporation is a foreign corporation, the Secretary shall prescribe such regulations as are appropriate in order to eliminate a multiple inclusion of any item in income by reason of this subpart and to provide appropriate basis adjustments (including modifications to the application of sections 959 and 961).'.

(2) Subsection (b) of section 9502 of the 1986 Code is amended by moving the sentence added at the end of paragraph (1) to the end of such subsection.

(3) Subsection (c) of section 6421 of the 1986 Code is amended--

(2) Section 1032(e)(12)(A) of the 1997 Act shall be applied as if 'gasoline, diesel fuel,' were the material proposed to be stricken.

(3) Paragraph (1) of section 4082(d) of the 1986 Code is amended to read as follows:

'(1) AVIATION-GRADE KEROSENE.--Subsection (a)(2) shall not apply to aviation-grade kerosene (as determined under regulations prescribed by the Secretary) which the Secretary determines is destined for use as a fuel in an aircraft.'.

(4) Paragraph (3) of section 4082(d) of the 1986 Code is amended by striking 'a removal, entry, or sale of kerosene to' and inserting 'kerosene received by'.

(5) Paragraph (1) of section 4101(e) of the 1986 Code is amended by striking 'dyed diesel fuel and kerosene' and inserting 'such fuel in a dyed form'.

(2) Subclause (I) of section 512(b)(13)(B)(i) of the 1986 Code is amended by striking '(as defined in section 513A(a)(5)(A))'.

(3) Paragraph (2) of section 1041(b) of the 1997 Act is amended to read as follows:

'(2) BINDING CONTRACTS.--The amendments made by this section shall not apply to any amount received or accrued during the first 2 taxable years beginning on or after the date of the enactment of this Act if such amount is received or accrued pursuant to a written binding contract in effect on June 8, 1997, and at all times thereafter before such amount is received or accrued. The preceding sentence shall not apply to any amount which would (but for the exercise of an option to accelerate payment of such amount) be received or accrued after such 2 taxable years.'.

(3) Subparagraph (A) of section 901(k)(4) of the 1986 Code is amended by striking 'securities business' and inserting 'business as a securities dealer'.

(2) by striking '22' and inserting '21'.

(2) Paragraph (4) of section 264(a) of the 1986 Code is amended by striking 'subsection (d)' and inserting 'subsection (e)'.

(3)(A) Paragraph (4) of section 264(f) of the 1986 Code is amended by adding at the end the following new subparagraph:

(3) The text of paragraph (3) of section 1085(a) of the 1997 Act is amended to read as follows: 'Paragraph (2) of section 6213(g) (relating to the definition of mathematical or clerical errors) is amended by striking 'and' at the end of subparagraph (I), by striking the period at the end of subparagraph (J) and inserting ', and', and by inserting after subparagraph (J) the following new subparagraph:

'(4) TREATMENT OF HOLDERS OF OPTIONS.--Paragraph (1) shall not apply to stock treated as owned by a person by reason of section 1298(a)(4) (relating to the treatment of a person that has an option to acquire stock as owning such stock) unless such person establishes that such stock is owned (within the meaning of section 958(a)) by a United States shareholder (as defined in section 951(b)) who is not exempt from tax under this chapter.'.

(2) Section 1298(a)(2)(B) of the 1986 Code is amended by adding at the end the following new sentence:

(2) Paragraph (1) of section 1291(d) of the 1986 Code is amended by adding at the end the following new sentence: 'In the case of stock which is marked to market under section 475 or any other provision of this chapter, this section shall not apply, except that rules similar to the rules of section 1296(j) shall apply.'.

(3) Subsection (d) of section 1296 of the 1986 Code is amended by adding at the end the following new sentence:

(2) Section 6013 of the 1986 Code is amended by striking 'chapters 1 and 5' each place it appears in paragraphs (1)(A) and (5) of subsection (g) and in subsection (h)(1) and inserting 'chapter 1'.

(2) Paragraph (3) of section 6038(a) of the 1986 Code is amended by striking 'such information' and all that follows through the period and inserting 'the Secretary has prescribed the furnishing of such information on or before the first day of such annual accounting period.'.

(3) Paragraph (4) of section 6038(e) of the 1986 Code is amended by striking 'corporation' and inserting 'foreign business entity' each place it appears.

(2) Paragraph (8) of section 6103(k) of the 1986 Code (as added by section 1205(c)(1) of the 1997 Act) is redesignated as paragraph (9).

(3) Subsection (g) of section 7431 of the 1986 Code added by section 1205 of the 1997 Act is redesignated as subsection (h) and is amended by striking '(8)' in the heading and inserting '(9)'.

(4) Section 1205(c)(3) of the 1997 Act shall be applied as if it read as follows:

'(3) Section 6103(p)(3)(A), as amended by section 1026(b)(1)(A) of the 1997 Act, is amended by striking 'or (8)' and inserting '(8), or (9)'.

(5) Section 1213(b) of the 1997 Act is amended by striking 'section 6724(d)(1)(A)' and inserting 'section 6724(d)(1)'.

(2) by striking 'subchapter C' in the text and inserting 'subchapters C and D'.

(2) The item relating to section 646 in the table of sections for subpart A of part I of subchapter J of chapter 1 of the 1986 Code is amended by striking 'Sec. 646' and inserting 'Sec. 645'.

(3) Paragraph (1) of section 2652(b) of the 1986 Code is amended by striking 'section 646' and inserting 'section 645'.

(4)(A) Paragraph (1) of section 2652(b) of the 1986 Code is amended by striking the second sentence.

(3) Section 5056 of the 1986 Code is amended by striking 'produced in the United States' each place it appears and inserting 'removed for consumption or sale'.

(2) Subsection (a) of section 5044 of the 1986 Code is amended by striking 'produced in the United States' and inserting 'removed from a bonded wine cellar'.

(3) Section 5364 of the 1986 Code is amended by striking 'Wine imported or brought into' and inserting 'Natural wine (as defined in section 5381) imported or brought into'.

(2) by inserting 'or a fixed-wing aircraft' after 'helicopter'.

(2) by inserting 'OR SIMPLE RETIREMENT ACCOUNTS' after 'PENSIONS' in the heading thereof.

(2) by striking 'such date of enactment' and inserting 'the date of the enactment of this Act'.

(2) Paragraph (3) of section 1807(c) of the Small Business Job Protection Act of 1996 is amended by striking 'Clause (i)' and inserting 'Clause (ii)'.

(2) QUALIFYING CHILDREN.--The amendments made by subsection (b) shall take effect as if included in the amendments made by section 11111 of Revenue Reconciliation Act of 1990.

(B) by striking 'or' at the end of subparagraph (G); and

(C) by striking the period at the end of subparagraph (I) and inserting a semicolon.

(21) Subparagraph (A) of section 6050R(b)(2) of the 1986 Code is amended by striking the semicolon at the end thereof and inserting a comma.

(22) Subparagraph (A) of section 6103(h)(4) of the 1986 Code is amended by inserting 'if' before 'the taxpayer is a party to'.

(23) Paragraph (5) of section 6416(b) of the 1986 Code is amended by striking 'section 4216(e)(1)' each place it appears and inserting 'section 4216(d)(1)'.

(24)(A) Section 6421 of the 1986 Code is amended by redesignating subsections (j) and (k) as subsections (i) and (j), respectively.

(26)(A) Section 6427 of the 1986 Code, as amended by paragraph (16), is amended by redesignating subsections (n), (p), (q), and (r) as subsections (m), (n), (o), and (p), respectively.

(28) The paragraph heading of paragraph (2) of section 7702B(e) of the 1986 Code is amended by inserting 'SECTION' after 'APPLICATION OF'.

(29) Paragraph (3) of section 7434(b) of the 1986 Code is amended by striking 'attorneys fees' and inserting 'attorneys' fees'.

(30) Subparagraph (B) of section 7872(f)(2) of the 1986 Code is amended by striking 'foregone' and inserting 'forgone'.

(31) Subsection (e) of section 9502 of the 1986 Code is amended to read as follows:

'(2) 0.67 cent per gallon in the case of fuel used in producing a mixture described in paragraph (1).'.

(32) The amendments made by this section shall take effect on the date of the enactment of this Act.

(2) CHANGE IN METHOD OF ACCOUNTING.--In the case of any taxpayer required by the amendment made by subsection (a) to change its method of accounting for its first taxable year ending after the date of the enactment of this Act--

(2) EXCEPTION FOR BINDING CONTRACTS, ETC.--Such term shall not include any interest in real property acquired after March 26, 1998, by the exempt REIT or any stapled entity if--

(5) TREATMENT OF ENTITIES WHICH ARE NOT STAPLED, ETC. ON MARCH 26, 1998.--Notwithstanding any other provision of this section, all interests in real property held by an exempt REIT or any stapled entity with respect to such REIT (or treated under subsection (c) as held by such REIT or stapled entity) shall be treated as nonqualified real property interests unless--

(2) PROPERTY HELD BY 10-PERCENT SUBSIDIARIES TREATED AS NONQUALIFIED.--

(4) SPECIAL RULES FOR DETERMINING OWNERSHIP.--For purposes of this subsection--

(3) EXCEPTION FOR CERTAIN MARKET RATE OBLIGATIONS.--Such term shall not include any obligation--

(5) TREATMENT OF ENTITIES WHICH ARE NOT STAPLED, ETC. ON MARCH 26, 1998.--A rule similar to the rule of subsection (b)(5) shall apply for purposes of this subsection.

(6) INCREASE IN AMOUNT OF NONQUALIFIED OBLIGATIONS IF INCREASE IN OWNERSHIP OF SUBSIDIARY.--A rule similar to the rule of subsection (c)(3) shall apply for purposes of this subsection.

(7) COORDINATION WITH SUBSECTION (a).--This subsection shall not apply to the portion of any interest in real property that the exempt REIT or stapled entity holds or is treated as holding under this section without regard to this subsection.

(3) STAPLED REIT GROUP.--The term 'stapled REIT group' means, with respect to an exempt REIT, the group consisting of--

(2) CHANGE IN METHOD OF ACCOUNTING.--In the case of any taxpayer required by the amendments made by this section to change its method of accounting for its first taxable year ending after the date of the enactment of this Act--

'(5) Section 150 of such title, and the item relating to such section in the analysis for chapter 1 of such title, are repealed.';

(2) in subsection (n) by inserting 'of title 23, United States Code' after '206'; and

(3) by adding at the end the following:

'(2) in subsection (b) (as amended by subsection (b) of this section)--

'(2) in subsection (c)(1) by striking '50 percent of';

'(3) in subsection (c)(1)(A) by inserting '(other than metropolitan planning, minimum guarantee, high priority projects, Appalachian development highway system, and recreational trails programs)' after 'subsection (a)';

'(4) in subsection (c)(1)(B) by striking 'all States' and inserting 'each State';

'(5) in subsection (c)(2)--

'(2) REDUCTION.--If the amount determined pursuant to section 251(b)(1)(B)(ii)(I)(cc) of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C 901(b)(2)(B)(ii)(I)(cc)) for fiscal year 2000 or any fiscal year thereafter is less than zero, the Secretary on October 1 of the succeeding fiscal year shall reduce proportionately the amount of sums authorized to be appropriated from the Highway Trust Fund (other than the Mass Transit Account) to carry out each of the Federal-aid highway and highway safety construction programs (other than emergency relief) by an aggregate amount equal to the amount determined pursuant to such section.';

'(2) in subsections (b)(2) and (b)(4) by striking 'subsection (a)' and inserting 'subsection (a)(1)'; and

'(3) in subsection (c) by striking 'Maintenance program, the' and inserting 'and'.'.

(2) by striking 'that reduce' and inserting 'reduce'.

'(2) in subsection (c)(3) by inserting 'PRIORITY' after 'FUNDING'; and

'(3) in subsection (c)(3) by inserting 'and prior to funding any other activity under this section,' after '2003,'.'.

'(2) RESERVATION OF FUNDS.--Section 202(d)(4)(B) of such title (as added by subsection (b)(4) of this section) is amended by striking 'to, apply sodium acetate/formate de-icer to,' and inserting ', sodium acetate/formate, or other environmentally acceptable, minimally corrosive anti-icing and de-icing compositions'.

'(3) ELIMINATION OF DUPLICATIVE PROVISION.--Section 144(g) of such title is amended by striking paragraph (4).'.

'(2) foster educational programs relating to the history and construction techniques of historic covered bridges;

'(3) conduct research on the history of historic covered bridges; and

'(4) conduct research, and study techniques, on protecting historic covered bridges from rot, fire, natural disasters, or weight-related damage.

'(2) TYPES OF PROJECT.--A grant under paragraph (1) may be made for a project--

'(2) substitute projects approved pursuant to this section shall be funded from interstate construction funds apportioned or allocated to the District of Columbia that are not expended and not subject to lapse on the date of enactment of this Act.

'(3) by redesignating subsection (d) as subsection (c).

'(2) by striking subsection (e) and inserting the following:

'(2) by striking subsection (b).

(2) in subsection (i) by adding at the end the following:

'(4) TECHNICAL AMENDMENTS.--Section 1105(e)(5)(B)(i) of such Act (as amended by paragraph (3) of this subsection) is amended--

(4) in subsection (k)--

(5) by redesignating subsections (g) through (i) and (k) through (n) as subsections (f) through (h) and (i) through (l), respectively.

(2) in subsection (r)--

(3) in subsection (s)--

(4) in subsection (u)--

(2) in subsection (d)(1) by inserting 'on Route 50' after 'measures'.

(2) in subsection (i) by striking '120(l)(1)' and inserting '120(j)(1)'; and

(3) in subsection (j) by adding at the end the following: '$3,000,000 of the amounts made available for item 164 of the table contained in section 1602 shall be made available on October 1, 1998, to the Pennsylvania Turnpike Commission to carry out this subsection.'.

'(2) in subsection (d)--

'(4) by adding at the end the following:

'(2) NONCONTRACT AUTHORITY AUTHORIZATION OF APPROPRIATIONS.--

'(2) EXPLANATION.--Not less often than quarterly, the Secretary shall submit to the Committee on Environment and Public Works of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives a list of the projects selected under discretionary programs funded from the Highway Trust Fund (other than the Mass Transit Account) and an explanation of how the projects were selected based on the criteria established under subsection (a).

'(2) The national corridor planning and development program.

'(3) The coordinated border infrastructure and safety program.

'(4) The construction of ferry boats and ferry terminal facilities.

'(5) The national scenic byways program.

'(6) The Interstate discretionary program.

'(7) The discretionary bridge program.'.

(2) by inserting after the item relating to section 1310 the following:

(2) in subsection (d) by inserting after 'Code,' the following: 'or chapter 53 of title 49, United States Code,'; and

(3) in subsection (e)(1)--

'(2) MOTOR VEHICLE.--The term 'motor vehicle' means a vehicle driven or drawn by mechanical power and manufactured primarily for use on public highways, but does not include a vehicle operated exclusively on a rail or rails.

'(3) OPEN ALCOHOLIC BEVERAGE CONTAINER.--The term 'open alcoholic beverage container' means any bottle, can, or other receptacle--

'(2) MOTOR VEHICLES DESIGNED TO TRANSPORT MANY PASSENGERS.--For the purposes of this section, if a State has in effect a law that makes unlawful the possession of any open alcoholic beverage container by the driver (but not by a passenger)--

'(3) USE FOR HAZARD ELIMINATION PROGRAM.--A State may elect to use all or a portion of the funds transferred under paragraph (1) or (2) for activities eligible under section 152.

'(4) FEDERAL SHARE.--The Federal share of the cost of a project carried out with funds transferred under paragraph (1) or (2), or used under paragraph (3), shall be 100 percent.

'(5) DERIVATION OF AMOUNT TO BE TRANSFERRED.--The amount to be transferred under paragraph (1) or (2) may be derived from one or more of the following:

'(2) DRIVING WHILE INTOXICATED; DRIVING UNDER THE INFLUENCE.--The terms 'driving while intoxicated' and 'driving under the influence' mean driving or being in actual physical control of a motor vehicle while having an alcohol concentration above the permitted limit as established by each State.

'(3) LICENSE SUSPENSION.--The term 'license suspension' means the suspension of all driving privileges.

'(4) MOTOR VEHICLE.--The term 'motor vehicle' means a vehicle driven or drawn by mechanical power and manufactured primarily for use on public highways, but does not include a vehicle operated solely on a rail line or a commercial vehicle.

'(5) REPEAT INTOXICATED DRIVER LAW.--The term 'repeat intoxicated driver law' means a State law that provides, as a minimum penalty, that an individual convicted of a second or subsequent offense for driving while intoxicated or driving under the influence after a previous conviction for that offense shall--

'(3) USE FOR HAZARD ELIMINATION PROGRAM.--A State may elect to use all or a portion of the funds transferred under paragraph (1) or (2) for activities eligible under section 152.

'(4) FEDERAL SHARE.--The Federal share of the cost of a project carried out with funds transferred under paragraph (1) or (2), or used under paragraph (3), shall be 100 percent.

'(5) DERIVATION OF AMOUNT TO BE TRANSFERRED.--The amount to be transferred under paragraph (1) or (2) may be derived from one or more of the following:

(2) by redesignating subsection (d) as subsection (c).

'(2) COORDINATION.--In carrying out subsection (a), the Secretary shall coordinate with officials of the Minnesota Historical Society.

'(3) AUTHORIZATION OF APPROPRIATIONS.--There is authorized to be appropriated out of the Highway Trust Fund (other than the Mass Transit Account) $1,000,000 for each of fiscal years 1998 through 2003 to carry out this subsection.

'(4) APPLICABILITY OF TITLE 23.--Funds authorized by this subsection shall be available for obligation in the same manner as if such funds were apportioned under chapter 1 of title 23, United States Code; except that such funds shall remain available until expended.'.

'(2) in subsection (c)--

(2) by striking the items relating to subtitle E of title I and inserting the following:

'Sec. 1503. Establishment of program.

'Sec. 1504. Duties of the Secretary.

(B) by striking '25' and inserting '24.78';

(B) by striking '3.75' and inserting '8.0';

(2) by adding at the end the following:

(2) in subsection (d) by striking the closing quotation marks and the final period at the end and inserting the following:

'(5) COORDINATION.--If a project is located within the boundaries of more than one metropolitan planning organization, the metropolitan planning organizations shall coordinate plans regarding the project.

'(6) LAKE TAHOE REGION.--

(2) by adding at the end the following:

'(2) in subsection (b)(2)--

'(4) SELECTION OF PROJECTS FROM ILLUSTRATIVE LIST.--

'(2) REPORT.--Section 5307(k)(3) (as amended by subsection (f) of this section) is amended by inserting 'preceding' before 'fiscal year'.'.

'(3) ALLOCATING AMOUNTS.--Section 5309(m) (as amended by subsection (g) of this section) is amended--

(2) by striking the period at the end of subparagraph (B) and inserting a semicolon; and

(3) by adding at the end the following:

(2) by adding at the end the following:

'(2) SPECIAL RULE.--If the institutions identified in paragraph (1) are selected pursuant to 5505(i)(3)(B) of such title in fiscal year 2002 or 2003, the funds made available to carry out this subsection shall be available to those institutions to carry out the activities required pursuant to section 5505(i)(3)(B) of such title for that fiscal year.'.

'(2) in subsection (a)--

'(16) workplace safety.'.'.

'(2) by inserting before the last sentence the following: 'When awarding such contracts, recipients of assistance under this chapter shall maximize efficiencies of administration by accepting nondisputed audits conducted by other governmental agencies, as provided in subparagraphs (C) through (F) of section 112(b)(2) of title 23, United States Code.'.'.

(2) by adding at the end the following:

'(2) in paragraph (3)(D)--

'(4) in paragraph (5)(A) by striking '(e)' and inserting '(e)(2)';

'(5) in paragraph (5)(B) by striking '(e)' and inserting '(e)(2)';

'(6) in paragraph (6) by striking '(e)' each place it appears and inserting '(e)(2)'; and

'(7) in paragraph (7) by striking '(e)' each place it appears and inserting '(e)(2)'.'.

'(2) in subsection (c)(2)(A)(ii) by striking '$46,400,000' and inserting '$48,400,000';

'(3) in subsection (c)(2)(A)(iii) by striking '$51,200,000' and inserting '$50,200,000';

'(4) in subsection (c)(2)(A)(iv) by striking '$52,800,000' and inserting '$53,800,000';

'(5) in subsection (c)(2)(A)(v) by striking '$57,600,000' and inserting '$58,600,000';

'(6) in subsection (d)(2)(C)(iii) by inserting before the semicolon ', including not more than $1,000,000 shall be available to carry out section 5315(a)(16)';

'(7) in subsection (e)--

'(8) in subsection (g)(2) by striking '(c)(2)(B),' and all that follows through '(f)(2)(B),' and inserting '(c)(1), (c)(2)(B), (d)(1), (d)(2)(B), (e)(1), (e)(2)(B), (f)(1), (f)(2)(B),';

'(9) in subsection (h) by inserting 'under the Transportation Discretionary Spending Guarantee for the Mass Transit Category' after 'through (f)'; and

'(10) in subsection (h)(5) by striking subparagraphs (A) through (E) and inserting the following:

'(110) Providence-Boston Commuter Rail.

'(111) New York-St. George's Ferry Intermodal Terminal.

'(112) New York-Midtown West Ferry Terminal.

'(113) Pinellas County-Mobility Initiative Project.

'(114) Atlanta-MARTA Extension (S. De Kalb-Lindbergh).';

(2) in subsection (b)--

'(70) Vermont-Burlington-Essex Commuter Rail.'; and

(3) in subsection (c)--

(3) in subsection (b) by inserting after '2000' the first place it appears 'with funds made available under section 5338(h)(6) of such title'; and

(4) in item 2 of the table contained in subsection (b) by striking 'Rensslear' each place it appears and inserting 'Rensselaer'.

(2) in subsection (d) by striking 'the Mass Transit Account of the Highway Trust Fund' and inserting 'funds made available under section 5338(f)(2) of title 49, United States Code,';

(3) in subsection (d) by striking '1998' and inserting '1999'; and

(4) in subsection (e) by striking 'subsection (c)' and inserting 'subsection (d)'.

(5) in the heading for subsection (l)(1)(C) by striking 'FROM THE GENERAL FUND';

(6) in subsection (l)(1)(C) by inserting 'under the Transportation Discretionary Spending Guarantee for the Mass Transit Category' after '(B)'; and

(7) in subsection (l)(3)(B) by striking 'at least' and inserting 'less than'.

(2) in subsection (g)(1)--

(3) in subsection (g)(2)--

(2) by adding at the end the following:

'(3) DEFINITION.--For purposes of this subsection, the term 'Federal land management agencies' means the National Park Service, the United States Fish and Wildlife Service, and the Bureau of Land Management.'.

'(2) $5,797,000,000 in fiscal year 2000;'; and

(2) in paragraph (4) by striking '$6,746,000,000' and inserting '$6,747,000,000'.

'(2) by striking subsection (d).'.

(2) by striking '$32,750,000' each place it appears and inserting '$27,250,000'; and

(3) by striking '$32,000,000' each place it appears and inserting '$26,500,000'.

'(2) CONSISTENCY WITH OTHER LAW.--Credit assistance described in paragraph (1) shall be made available in a manner consistent with the Transportation Infrastructure Finance and Innovation Act of 1998.'.

'(2) in subsection (i)--

(2) in subsection (b) by striking 'Bureau' and inserting 'Bureau of Transportation Statistics,'; and

(3) in subsection (c) by striking 'paragraph (1)' and inserting 'subsection (a)'.

(2) in subsection (f)(2) by striking '$1,000,000 for fiscal year 1999, $1,000,000 for fiscal year 2000, $1,000,000 for fiscal year 2001, and $500,000 for fiscal year 2002' and inserting '$1,000,000 for fiscal year 1999, $1,000,000 for fiscal year 2000, and $500,000 for fiscal year 2001'.

(2) by striking '$3,000,000 per fiscal year' and inserting '$1,000,000 for fiscal year 1998 and $3,000,000 for each of fiscal years 1999 through 2003'.

(2) by adding at the end the following:

(2) in paragraph (2) by striking '$26,045,000,000' and inserting '$26,009,000,000'.

'(2) by striking 'as amended by this section,' and inserting 'as amended by the Transportation Equity Act for the 21st Century,'; and

'(3) by adding at the end the following new flush sentence:

'(3) in subsection (b), by striking out '$404' and inserting in lieu thereof '$485'; and

'(4) in subsection (c)(2)--

'(2) by striking out '$127' each place it appears and inserting in lieu thereof '$152'; and

'(3) by striking out '$13.46' and inserting in lieu thereof '$16.16'.

'(2) by striking out '$220' and inserting in lieu thereof '$264';

'(3) by striking out '$146' and inserting in lieu thereof '$175'; and

'(4) by striking out '$73' and inserting in lieu thereof '$88'.

'(5) Paragraph (3) of section 9503(e), as amended by subsection (d), is amended by striking 'the date of enactment of the Transportation Equity Act for the 21st Century' and inserting 'the date of the enactment of the TEA 21 Restoration Act'.'.

'(2) Subparagraph (B) of section 9504(b)(2), as added by subsection (b)(3), is amended by striking 'such Act' and inserting 'the TEA 21 Restoration Act'.

'(3) Subparagraph (C) of section 9504(b)(2), as amended by subsection (b)(2) and redesignated by subsection (b)(3), is amended by striking 'the date of the enactment of the Transportation Equity Act for the 21st Century' and inserting 'the date of the enactment of the TEA 21 Restoration Act'.

'(4) Subsection (c) of section 9504, as amended by subsection (c)(2), is amended by striking 'the date of enactment of the Transportation Equity Act for the 21st Century' and inserting 'the date of the enactment of the TEA 21 Restoration Act'.'.