Federal Program Improvement Act of 1993

TABLE OF CONTENTS:

Title I: Provisions Relating to the Medicare Program

Subtitle A: Durable Medical Equipment

Subtitle B: Medicare Secondary Payer

Title II: Customs Officer Pay Reform

Title III: Availability and Use of Death Information Under

the Old-Age, Survivors, and Disability Insurance Program

Title IV: PBGC Report on Employers with Underfunded Plans

Title V: Taxpayer Bill of Rights 2

Subtitle A: Taxpayer Advocate

Subtitle B: Modifications to Installment Agreement

Provisions

Subtitle C: Interest

Subtitle D: Joint Returns

Subtitle E: Collection Activities

Subtitle F: Information Returns

Subtitle G: Modifications to Penalty for Failure to

Collect and Pay Over Tax

Subtitle H: Awarding of Costs and Certain Fees

Subtitle I: Other Provisions

Subtitle J: Form Modifications; Studies

Title VI: Other Internal Revenue Code Provisions

Subtitle A: Extension of Authority for Undercover

Operations; Cash-Transaction Reports

Subtitle B: Provisions Relating to Exempt Organizations

Title VII: Prohibition of Misuse of Department of the

Treasury Names, Symbols, etc.

Federal Program Improvement Act of 1993 - Title I: Provisions Relating to the Medicare Program - Subtitle A: Durable Medical Equipment - (Sec. 1001) Amends title XVIII (Medicare) of the Social Security Act (SSA) to set forth requirements concerning durable medical equipment (DME) supplier number issuance and renewal, and certificates of medical necessity and uniform national coverage and utilization criteria for certain DME.

(Sec. 1001) Requires the Secretary of Health and Human Services (HHS) to study and report to the Congress on payment methodologies for:

(1) DME under Medicare part B (Supplementary Medical Insurance) for disabled Medicare beneficiaries; and (2) prosthetic devices and orthotics and prosthetics under such part that do not require custom fitting and adjustment.

(Secs. 1002 through 1007) Amends SSA title XVIII to: (1) revise procedures for processing Medicare DME claims; (2) place restrictions on certain marketing and sales activities of DME suppliers; (3) absolve Medicare beneficiaries from liability for payment of DME received from suppliers without suppliers numbers; (4) mandate fee schedule adjustments for amounts determined not to be inherently reasonable; and (5) revise formulae for payments for ostomy supplies, tracheostomy supplies, urologicals, surgical dressings, and tens devices.

(Sec. 1008) Requires the Health Care Financing Administration (HCFA) to collect data on variations in DME supplier costs for which payment may be made under Medicare part B for a report to specified congressional committees which shall also contain HCFA recommendations for a geographic cost adjustment index for DME suppliers.

(Sec. 1008) Requires the Comptroller General (CG) to report to specified congressional committees on supplier DME costs.

Subtitle B: Medicare Secondary Payer - (Sec. 1101) Amends the Omnibus Budget Reconciliation Act of 1989 (OBRA-1989) to provide that certain Medicare secondary payer provisions regarding the treatment of employment in a religious order shall apply to items and services furnished before the effective date of such provisions in secondary payer cases not identified as of that date.

(Sec. 1101) Makes changes to aid in the: (1) identification of Medicare secondary payer situations; and (2) recovery of erroneous Medicare payments from primary payers.

Title II: Customs Officer Pay Reform - (Sec. 2001) Revises the pay system for U.S. customs service inspectors and provides canine enforcement officers overtime compensation in the same manner applicable to inspectors.

(Secs. 2003 and 2005) Amends the Consolidated Omnibus Budget Reconciliation Act of 1985 with respect to customs user fee account reports and reimbursements.

(Sec. 2005) Requires, for certain annual reports to specified congressional committees, a CG review of expenditures from the Customs User Fee Account and Treasury recommendations for improving the operation of user fee laws in financing inspectional services.

Title III: Availability and Use of Death Information Under the Old-Age, Survivors, and Disability Insurance Program - (Sec. 3001) Amends SSA title II (Old Age, Survivors and Disability Insurance) to: (1) encourage States to enter into contracts to provide death information to the Social Security Administration; (2) authorize the Administration to redisclose such information to other Federal, State, and local agencies; and (3) restrict the use of social security numbers in motor vehicle registration and driver's license programs by States which do not provide for the exchange of death information.

Directs the Secretary to study and report to specified congressional committees on possible improvements in the current methods of gathering and reporting death information by Federal, State, and local governments.

Title IV: PBGC Report on Employers with Underfunded Plans - (Sec. 4001) Requires the Pension Benefit Guaranty Corporation to report annually to the Congress on employers with underfunded pension plans.

Title V: Taxpayer Bill of Rights 2 - Taxpayer Bill of Rights 2 - Subtitle A: Taxpayer Advocate - (Sec. 5001) Amends the Internal Revenue Code to establish in the Internal Revenue Service (IRS) the Office of the Taxpayer Advocate to: (1) assist taxpayers in resolving problems with the IRS; (2) identify areas in which taxpayers have such problems; (3) propose changes in IRS administrative practices to mitigate such problems; and (4) identify appropriate legislative changes to mitigate such problems.

(Sec. 5001) Replaces the IRS' Office of the Ombudsman with the Office of the Taxpayer Advocate.

(Sec. 5002) Revises the terms of a Taxpayer Assistance Order.

Subtitle B: Modifications to Installment Agreement Provisions - (Sec. 5101) Requires prior notification to taxpayers under an installment agreement to pay tax liability before altering, modifying, or terminating such an agreement.

(Sec. 5102) Provides for administrative review of denials of requests for, or terminations of, installment agreements.

Subtitle C: Interest - (Sec. 5201) Changes the rules for the abatement of interest attributable to IRS errors and delays.

(Sec. 5202) Extends the period for which interest will not be imposed after notice and demand for payment, if such payment is less than $100,000.

Subtitle D: Joint Returns - (Sec. 5301) Allows the disclosure of collection activities to an individual requesting such information in the case of a joint return where the individual is no longer married to, or no longer resides in the same household as, the other joint filer.

(Sec. 5302) Removes limitations on filing a joint return after filing separate returns without full payment of tax.

Subtitle E: Collection Activities - (Sec. 5401 and 5402) Authorizes the Secretary of the Treasury, in certain cases, to: (1) withdraw a notice of a lien; (2) return property that has been levied upon; and (3) offer compromises in civil or criminal cases.

(Sec. 5403) Requires: (1) prior notification to the taxpayer that the taxpayer is under examination; and (2) an explanation of the process (except in specified cases).

(Sec. 5404) Increases the dollar limit on the recovery of civil damages for unauthorized collection actions.

(Sec. 5405) Revises provisions with respect to a designated summons concerning the standard of review and notice requirements for issuance.

Subtitle F: Information Returns - (Sec. 5501) Requires payee statements to provide the telephone number of the person providing payment.

(Sec. 5502) Establishes civil damages for fraudulent return filing.

(Sec. 5503) Requires the Secretary to present reasonable and probative information concerning a deficiency in an information return by a third party, when such return is disputed in court by a taxpayer who has cooperated fully in the matter with the Secretary.

Subtitle G: Modifications to Penalty for Failure to Collect and Pay Over Tax - (Sec. 5601) Establishes requirements for preliminary notices of failure to pay over tax.

(Sec. 5602) Specifies the circumstances under which a person shall not be liable for any penalty for failure to collect and pay over tax.

(Secs. 5603 and 5604) Requires the Secretary to: (1) disclose certain information where more than one person is liable for a penalty; and (2) ensure that IRS employees are aware of their responsibilities under the tax depository system, the circumstances under which they may be liable for penalties, and reporting responsibilities.

(Sec. 5604) Exempts certain unpaid, volunteer board members of tax-exempt organizations from collection penalties.

Subtitle H: Awarding of Costs and Certain Fees - (Sec. 5701) Allows a substantially prevailing taxpayer to file a motion for a court order for the disclosure of all relevant records held by the IRS.

(Sec. 5702) Increases the limit on attorney fees.

(Sec. 5703) Provides that any failure to agree to an extension of time for the assessment of any tax shall not be taken into account in determining whether a prevailing party has exhausted all administrative remedies.

Subtitle I: Other Provisions - (Secs. 5801 and 5803) Revises provisions regarding the: (1) required content of tax due, deficiency, and other notices; and (2) retroactivity of IRS regulations and rulings.

(Sec. 5802) Provides for the treatment of substitute returns made by the Secretary.

(Sec. 5804) Requires notice to the taxpayer of the inability to associate any payment with any outstanding tax liability.

(Sec. 5805) Allows damages for the unauthorized disclosure and enticement of disclosure of taxpayer information.

Subtitle J: Form Modifications; Studies - (Secs. 5901 through 5903) Directs the Secretary to: (1) ensure that taxpayers are aware of permission to pay tax in installments, extensions of time for payment of tax, and compromises of tax liability; (2) improve procedures for taxpayers to notify the Secretary of name and address changes; and (3) include in a specified publication a section on the rights and responsibilities of divorced individuals.

(Secs. 5911 through 5914) Requires the Secretary to report to the congressional tax-writing committees on: (1) a pilot program for appeals of certain enforcement actions; (2) a study of ways to assist taxpayers with special needs to comply with IRS laws; (3) the scope and content of the IRS taxpayer-rights education program for its officers and employees; and (4) cases involving complaints about misconduct of IRS employees.

(Secs. 5915 and 5916) Requires the CG to study and report to such committees on notices of deficiency and the accuracy and clarity of commonly used IRS forms, notices, and publications.

Title VI: Other Internal Revenue Code Provisions - Subtitle A: Extension of Authority for Undercover Operations; Cash-Transaction Reports - (Sec. 6001) Extends the authority for IRS undercover operations.

(Sec. 6002) Provides for the disclosure to Federal, State, local, and foreign governments of information on tax returns relating to cash transactions.

Subtitle B: Provisions Relating to Exempt Organizations - (Secs. 6101 and 6102) Requires: (1) certain organizations to disclose their nonexempt tax status (or face specified civil penalties); and (2) tax-exempt organizations to make available for public inspection copies of their annual tax returns.

Title VII: Prohibition of Misuse of Department of the Treasury Names, Symbols, Etc. - (Sec. 7001) Prohitits misuse of Treasury Department names, symbols, emblems, abbreviations, and initials, and specifies civil penalties for any such misuse.