EXPENSES OF DETECTION OF UNDERPAYMENTS AND FRAUD, ETC.

Sec. 1209. EXPENSES OF DETECTION OF UNDERPAYMENTS AND FRAUD, ETC. (a) In general.— Section 7623 (relating to expenses of deduction and punishment of frauds) is amended to read as follows: “Sec. 7623. EXPENSES OF DETECTION OF UNDERPAYMENTS AND FRAUD, ETC. “The Secretary, under regulations prescribed by the Secretary, is authorized to pay such sums as he deems necessary for— “(1) detecting underpayments of tax, and “(2) detecting and bringing to trial and punishment persons guilty of violating the internal revenue laws or conniving at the same, in cases where such expenses are not otherwise provided for by law. Any amount payable under the preceding sentence shall be paid from the proceeds of amounts (other than interest) collected by reason of the information provided, and any amount so collected shall be available for such payments.” 110 STAT. 1474 (b) Clerical Amendment.— The table of sections for subchapter B of chapter 78 is amended by striking the item relating to section 7623 and inserting the following new item: “Sec. 7623. Expenses of detection of underpayments and fraud, etc.”. (c) Effective Date.— The amendments made by this section shall take effect on the date which is 6 months after the date of the enactment of this Act. (d) Report.— The Secretary of the Treasury or his delegate shall submit an annual report to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate on the pa5niients under section 7623 of the Internal Revenue Code of 1986 during the year and on the amounts collected for which such payments were made.