The U.S. Tax Court is an independent judicial body in the legislative branch under article I of the Constitution of the United States. The court is composed of a chief judge and 18 judges. Decisions by the court are reviewable by the U.S. Courts of Appeals and, if certiorari is granted, by the Supreme Court.

In their judicial duties the judges are assisted by senior judges, who participate in the adjudication of regular cases, and by special trial judges, who hear small tax cases and certain regular cases assigned to them by the chief judge. During fiscal year 1988, 8 senior judges and up to 17 special trial judges will be serving on the court. The Court conducts trial sessions throughout the United States, including Hawaii and Alaska.

The U.S. Tax Court hears and decides cases involving Federal income, estate and gift tax deficiencies and excise taxes relating to public charities, private foundations, qualified pension plans, real estate investment trusts, and windfall profit tax on domestic crude oil. It also renders declaratory judgments regarding the qualification or continuing qualification (including revocations of rulings on the exemptions) of retirement plans.

The Tax Court has jurisdiction to render declaratory judgments with respect to exempt organization status determinations pursuant to section 501(c)(3), Internal Revenue Code, and to enter declaratory judgments on the tax treatment of interest on proposed issues of Government obligations. In addition, the court has jurisdiction over actions to restrain disclosure and to obtain additional disclosure with respect to public inspection of written determinations issued by the Internal Revenue Service, and actions to compel the disclosure of the identity of third-party_contacts_relating to written determinations made by the Internal Revenue Service.

For 1990, the court proposes a trial program of 400 weeks consisting of 230 weeks of regular trial sessions and 170 weeks of small tax case sessions. Trials are held in approximately 80 cities throughout the United States. Ninety to ninety-five percent of the Federal tax trial work occurs in the U.S. Tax Court.

The actual and estimated work volume of the court is presented in the following tabulation:

STATEMENT CONCERNING GENERAL PROVISIONS

Traditionally, the Treasury, Postal Service, and General Government appropriation bill has included general provisions which govern both the activities of the agencies covered by the bill, and, in some cases, activities of agencies, programs, and general government activities that are not covered by the bill. Those general provisions that are Governmentwide in scope are contained in title VI of this bill.

The bill contains a number of general provisions that have been carried in this bill for years and which are routine in nature and scope. At the same time, the Committee has included a number of new general provisions in the bill which are explained under this section of the report. Those general provisions that deal with a single agency only are shown immediately following that particular agency or departments appropriation accounts in the bill. Those general provisions that address activities or directives affecting all of the agencies covered in this bill are contained in title V of the bill.

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TITLE V-GENERAL PROVISIONS

THIS ACT

The Committee has recommended retention of the following title V general provisions contained in the House-passed bill:

Section 501 regarding certain employment practices regarding veterans;

Section 502 regarding establishment of offices outside of the District of Columbia;

Section 503 limiting the use of appropriated funds to the current fiscal year;

Section 504 regarding consultant services;

Section 505 that addresses a "Buy America" provision regarding the procurement of hand or measuring tools;

Section 506_regarding employment of veterans in certain jobs performed in Federal buildings, with an amendment;

its;

Section 507 regarding the advertising of wine and distilled spir

Section 508 regarding the elimination of existing requirements for surety bonds;

Section 509 regarding enforcement of section 307 of the Tariff Act;

Section 510 prohibiting the transfer of control over the Federal Law Enforcement Training Center, and modifies language to include Marana, AZ;

Section 511 regarding the use of funds for certain propaganda purposes;

Section 512 prohibiting use of funds appropriated in this act from being used to prevent certain Federal employees from contacting their Congressman;

Section 513 prohibiting abortion coverage in Federal employees health plans except under certain circumstances;

Section 514 addresses certain conditions placed upon the language contained in section;

Section 515 prohibits the use of funds to close or consolidate executive seminar centers for the Office of Personnel Management; Section 516 relates to the U.S. courts in Tacoma, WA;

Section 517 providing that funds in this act shall be available as authorized by 5 U.S.C. 4501-4506;

Section 518 which grants special pay relief to certain Federal employees under certain circumstances;

Section 519 regarding limitation on use of funds to contract out positions or downgrade the position classification of the Bureau of Engraving and Printing Police Force;

Section 520 permits the Office of Personnel Management to accept donations for the Federal Executive Institute; and

Section 521 directs OMB to change the title of a metropolitan statistical area in Pennsylvania.

The Committee has included the following title V general provisions which were not included in the House-passed bill:

Section 522 authorizes the Director of the Bureau of Alcohol, Tobacco and Firearms to increase base pay by up to 25 percent for employees who are proficient in one or more languages.

Section 523 authorizes the Secret Service to reimburse municipalities and political subdivisions of a State, in a limited manner, for law enforcement activities related to the permanent residence of the President.

The Committee understands that there is a serious financial burden imposed on the small town of Kennebunkport, ME, when the President stays at his primary residence located there. The town recently informed the President that it could no longer provide for his protection as it had exhausted available funds.

The Committee is concerned that the expenses incurred by the town are incurred as a direct result of assistance requested by the Secret Service detailed to the area. In that regard, the Committee believes that the protection of the President should be of primary concern and that given the town's inability to raise the funds to adequately fulfill requests by the Secret Service, $160,000 shall be appropriated to the municipality.

Therefore, the Secret Service has been granted limited authority to reimburse the town and funds have been provided for that purpose up to $160,000.

Section 524 that addresses a "Buy America" provision regarding the procurement of stainless steel flatware.

Section 525 relates to section 89 of the U.S. Internal Revenue Code. The Committee believes that strong action is necessary to insure the well-being of our Nation's small businesses. Health insurance benefits play an integral role in that well-being. The Committee has expressed its concern by including language that prevents the use of any moneys in this act to enforce or issue any regulations concerning any of the provisions of section 1151 of the Tax Reform Act of 1986 which relate to section 89 of the U.S. Internal Revenue Code. While this measure is not a repeal of section 89, it provides, in effect, a 1-year moratorium on section 89 enforcement. The Committee intends that nonprofit corporations and State and local governments shall be afforded the same protections granted to individuals required to file tax returns.

Section 526 amends the Customs Service asset forfeiture fund, subsection (a)(3)(F) of 19 U.S.C. 1613b, to expand the authorized use of the fund to provide for reimbursement to State and local law enforcement agencies for a far broader range of law enforcement activities that are aimed at interdicting the flow of illegal narcotics and dangerous drugs into the United States.

The change is designed to authorize reimbursement to State and local law enforcement agencies from the asset forfeiture fund, for all extraordinary expenses incurred by them while operating with or assisting the Customs Service in task force operations like Operation Alliance. At a minimum, $6,000,000, but not to exceed $10,000,000, will be made available from the fund to reimburse

State and local law enforcement agencies involved in these talk forces with the Customs Service.

The Customs Service will report to the Committee on the resources provided to State and local law enforcement agencies. The report shall include: the amount of resources transferred, the types of resources transferred, the recipients of the resources and the uses to which the resources will be applied. The Customs Service shall report to the Committee 6 months from the date of the provision's enactment and every 6 months thereafter.

Section 527 requires absorption of the Federal employee cost-ofliving adjustment within the amounts provided for each agency.