Rewards for Information on Tax Law Violations

Clarifies that the IRS may pay rewards for information relating to civil tax violations as well as criminal.

The particular reward would be funded from the amount collected by reason of the information provided.

An annual report on the rewards program is required.

Effective 6 months after the date of enactment.

Undercover Operations Extension

Reinstates the IRS's authority, which expired on 12/31/91, to fund an undercover operation from the income generated from such operation (churning authority) until 1-1-2001.

Annual reporting requirements on undercover operations are expanded.

Effective on the date of enactment.

Penalties for Failure to File and Pay Tax

Treatment of Substitute Returns

The penalties for failure to file a tax return and pay tax apply to substitute returns in the same manner as those penalties apply to voluntary filed delinquent returns.

A substitute return will now be treated as a return filed by the taxpayer.

Effective for any return with a due date after the date of enactment.