text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Biased IRS Audit Systems Prevention 
  Act''.
  
  SEC. 2. ENSURING AUDIT TRANSPARENCY AND FAIRNESS.
  
      (a) Audit Transparency.--
              (1) In general.--The Secretary shall--
                      (A) not later than the time a taxpayer is notified 
                  a tax return has been selected for an audit by the 
                  Internal Revenue Service, provide to the taxpayer 
                  sufficient information regarding the reason the tax 
                  return was selected for an audit, and
                      (B) preserve, in accordance with paragraph (3), and 
                  make available for review by an applicable oversight 
                  entity, any information or criteria used by the 
                  Internal Revenue Service in selecting a tax return for 
                  auditing.
              (2) Information required to be disclosed to the taxpayer.--
          For purposes of paragraph (1)(A):
                      (A) Returns selected based on computer modeling.--
                  In the case of any tax return selected for auditing 
                  based in whole or in part upon computer modeling, the 
                  information disclosed to the taxpayer shall include a 
                  description of any data used in such modeling which 
                  was--
                              (i) provided by the taxpayer, including 
                          whether such information was filed 
                          electronically by the taxpayer or transcribed 
                          from a return which was printed and filed on 
                          paper, and
                              (ii) provided from information obtained by 
                          the Internal Revenue Service from sources other 
                          than the taxpayer.
                      (B) Returns selected other than by computer 
                  modeling.--In the case of any tax return selected for 
                  auditing based in whole or in part upon a method other 
                  than computer modeling, the information disclosed to 
                  the taxpayer shall include the method employed and any 
                  data sources used by the examiner, including the 
                  methodology employed by the examiner for determining 
                  the validity of such sources.
                      (C) No requirement to disclose identity of another 
                  taxpayer.--The Secretary is not required to disclose 
                  the return information (as defined in section 6103(b) 
                  of the Internal Revenue Code of 1986) of any person 
                  other than the taxpayer whose return has been selected 
                  for audit.
              (3) Methodology for preserving information for oversight.--
          For purposes of paragraph (1)(B)--
                      (A) In general.--The Secretary shall document and 
                  record how many returns are selected for auditing based 
                  on--
                              (i) randomized selection,
                              (ii) scoring under the Discriminant Index 
                          Function System,
                              (iii) a determination by an Internal 
                          Revenue Service examiner,
                              (iv) any methodology not described in 
                          clauses (i) through (iii), and
                              (v) any combination of methodologies 
                          described in clauses (i) through (iv).
                      (B) Internally obtained information.--In the case 
                  of any tax return which is selected for audit in whole 
                  or in part based on information obtained by the 
                  Internal Revenue Service from sources other than the 
                  taxpayer, the Secretary shall document and record the 
                  source of such information.
              (4) Definitions.--For purposes of this subsection:
                      (A) Applicable entity.--The term ``applicable 
                  oversight entity'' means any entity with responsibility 
                  for oversight of the activities of the Internal Revenue 
                  Service, including Congress, the Treasury Inspector 
                  General for Tax Administration, the Comptroller 
                  General, the National Taxpayer Advocate, and the 
                  Internal Revenue Service Oversight Board (as described 
                  in section 7802 of the Internal Revenue Code of 1986).
                      (B) Secretary.--The term ``Secretary'' means the 
                  Secretary of the Treasury or such Secretary's delegate.
              (5) Effective date.--This subsection shall apply to tax 
          returns selected for audit after the date of the enactment of 
          this Act.
      (b) Termination of Research Audits.--
              (1) In general.--The Internal Revenue Service may not 
          conduct any audit, investigation, or examination of a taxpayer 
          that is primarily for the purpose of research.
              (2) Transfer of resources to prevent tax identity theft.--
                      (A) In general.--To the maximum extent possible, 
                  the Commissioner of Internal Revenue shall repurpose 
                  resources for the National Research Program to 
                  combating tax refund fraud and identity theft.
                      (B) Report.--Not later than 6 months after the date 
                  of the enactment of this Act, the Commissioner of 
                  Internal Revenue shall submit to Congress a report on 
                  the resources that have been repurposed pursuant to 
                  subparagraph (A).
target: Biased IRS Audit Systems Prevention Act  This bill directs the Internal Revenue Service (IRS) to: (1)&nbsp; provide a&nbsp;taxpayer who&nbsp;is selected for an audit sufficient information regarding the reason the taxpayer's return was selected for an audit and to preserve such information for review; (2) document and record how many returns are selected for audit based on randomized selection, scoring under the Discriminant Index Function System, a determination by an IRS examiner, and other methodologies; and (3) repurpose resources for the National Research Program (taxpayer data collection program)&nbsp;to combat tax refund fraud and identity theft.  The bill prohibits the IRS from conducting&nbsp;any audit, investigation, or examination of a taxpayer that is primarily for research purposes. 
feat_title: Biased IRS Audit Systems Prevention Act