HIGHWAY USE TAX EVASION PROJECTS.

SEC. 1115. HIGHWAY USE TAX EVASION PROJECTS.(a) Eligible Activities.—(1) Intergovernmental enforcement efforts.—Section 143(b)(2) of title 23, United States Code, is amended by inserting before the period the following: “; except that of funds so made available for each of fiscal years 2005 through 2009, $2,000,000 shall be available only to carry out intergovernmental enforcement efforts, including research and training”.(2) Conditions on funds allocated to internal revenue service.—Section 143(b)(3) of such title is amended by striking “The” and inserting “Except as otherwise provided in this section, the”.(3) Limitation on use of funds.—Section 143(b)(4) of such title is amended—(A) by striking “and” at the end of subparagraph (F);(B) by striking the period at the end of subparagraph (G) and inserting a semicolon; and(C) by adding at the end the following:“(H) to support efforts between States and Indian tribes to address issues relating to State motor fuel taxes; and“(I) to analyze and implement programs to reduce tax evasion associated with foreign imported fuel.”.(4) Reports.—Section 143(b) of such title is amended by adding at the end the following:119 STAT. 1176 “(9) Reports.—The Commissioner of the Internal Revenue Service and each State shall submit to the Secretary an annual report that describes the projects, examinations, and criminal investigations funded by and carried out under this section. Such report shall specify the estimated annual yield from such projects, examinations, and criminal investigations.”.(b) Excise Fuel Reporting System.—Section 143(c) of such title is amended to read as follows:“(c) Excise Tax Fuel Reporting.—“(1) In general.—Not later than 90 days after the date of enactment of the SAFETEA–LU, the Secretary shall enter into a memorandum of understanding with the Commissioner of the Internal Revenue Service for the purposes of—“(A) the additional development of capabilities needed to support new reporting requirements and databases established under such Act and the American Jobs Creation Act of 2004 (Public Law 108–357), and such other reporting requirements and database development as may be determined by the Secretary, in consultation with the Commissioner of the Internal Revenue Service, to be useful in the enforcement of fuel excise taxes, including provisions recommended by the Fuel Tax Enforcement Advisory Committee,“(B) the completion of requirements needed for the electronic reporting of fuel transactions from carriers and terminal operators,“(C) the operation and maintenance of an excise summary terminal activity reporting system and other systems used to provide strategic analyses of domestic and foreign motor fuel distribution trends and patterns,“(D) the collection, analysis, and sharing of information on fuel distribution and compliance or noncompliance with fuel taxes, and“(E) the development, completion, operation, and maintenance of an electronic claims filing system and database and an electronic database of heavy vehicle highway use payments.“(2) Elements of memorandum of understanding.—The memorandum of understanding shall provide that—“(A) the Internal Revenue Service shall develop and maintain any system under paragraph (1) through contracts,“(B) any system under paragraph (1) shall be under the control of the Internal Revenue Service, and“(C) any system under paragraph (1) shall be made available for use by appropriate State and Federal revenue, tax, and law enforcement authorities, subject to section 6103 of the Internal Revenue Code of 1986.“(3) Funding.—Of the amounts made available to carry out this section for each of fiscal years 2005 through 2009, the Secretary shall make available to the Internal Revenue Service such funds as may be necessary to complete, operate, and maintain the systems under paragraph (1) in accordance with this subsection.“(4) Reports.—Not later than September 30 of each year, the Commissioner of the Internal Revenue Service shall provide 119 STAT. 1177 reports to the Secretary on the status of the Internal Revenue Service projects funded under this subsection.”.(c) Allocations.—Of the amounts authorized to be appropriated under section 1101(a)(21) of this Act for highway use tax evasion projects for each of the fiscal years 2005 through 2009, the following amounts shall be allocated to the Internal Revenue Service to carry out section 143 of title 23, United States Code:(1) $5,000,000 for fiscal year 2005.(2) $44,800,000 for fiscal year 2006.(3) $53,300,000 for fiscal year 2007.(4) $12,000,000 for each of fiscal years 2008 and 2009.