end the following new subsection: (f) Adjustment for inflation In the case of any calendar year after 2018, the $5,000,000 and $500,000 amounts in subsection (b) shall each be increased by an amount equal to— (1) such dollar amount, multiplied by (2) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year, determined by substituting calendar year 2017 for calendar year 2016 in subparagraph (A)(ii) thereof. If any amount as increased under the preceding sentence is not a multiple of $500, such amount shall be rounded to the next lowest multiple of $500. . (b) Extension of time To bring action Section 7433(d)(3) of the Internal Revenue Code of 1986 is amended by striking 2 years and inserting 5 years . (c) Effective date The amendments made by this section shall apply to actions of employees of the Internal Revenue Service after the date of the enactment of this Act. 4. Modifications relating to certain offenses by officers and employees in connection with revenue laws (a) Increase in penalty Section 7214 of the Internal Revenue Code of 1986 is amended— (1) by striking $10,000 in subsection (a) and inserting $25,000 , and (2) by striking $5,000 in subsection (b) and inserting $10,000 . (b) Adjustment for inflation Section 7214 of the Internal Revenue Code of 1986, as amended by subsection (a), is amended by redesignating subsection (c) as subsection (d) and by inserting after subsection (b) the following new subsection: (c) Adjustment for inflation In the case of any calendar year after 2018, the $25,000 amount in subsection (a) and the $10,000 amount in subsection (b) shall each be increased by an amount equal to— (1) such dollar amount, multiplied by (2) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year, determined by substituting calendar year 2017 for calendar year 2016 in subparagraph (A)(ii) thereof. If any amount as increased under the preceding sentence is not a multiple of $100, such amount shall be rounded to the next lowest multiple of