Prohibits payment of fees and expenses awarded in such proceedings from appropriated funds of the Treasury's claims and judgments account.
Deletes provisions barring taxpayer recovery of costs, fees, or other expenses awarded under the Internal Revenue Code.
Specifies that: (1) at any time after the filing of an application for fees and other expenses an agency may offer a settlement of the claims made (and, if within ten days, the applicant accepts, either party may file the offer and notice of acceptance); (2) an offer not accepted shall be deemed withdrawn (but shall not preclude a subsequent offer); and (3) if any award finally obtained by the applicant is not more favorable than the offer, the applicant shall not be entitled to receive an award for attorney's fees or other expenses incurred in relation to the application for fees and expenses after the date of the offer.
Deletes requirements that a court find or a party allege that the position of the agency or of the United States was or was not substantially justified.
Requires the Administrative Conference of the United States and the Department of Justice to report to Congress on fee awards paid by Federal districts and agencies.