Tax Collection Responsibility Act of 2007

Tax Collection Responsibility Act of 2007 - (Sec. 2) Repeals the authority of the Internal Revenue Service (IRS) to enter into private debt collection contracts. Exempts contracts entered into before July 18, 2007, if such contracts are not renewed or extended after such date. Nullifies any contract entered into, extended, or renewed on or after July 18, 2007.

(Sec. 3) Delays until 2012 the requirement for federal, state, and local agencies to withhold 3% of payments for goods and services provided to such agencies.

Requires the Secretary of the Treasury to report to the House Committee on Ways and Means and the Senate Committee on Finance on issues relating to the administration of the withholding requirement.

(Sec. 4) Treats income tax returns filed with the U.S. Virgin Islands by an individual claiming to be a bona fide resident of the Virgin Islands during the entire taxable year as filed with the United States for tax administration purposes.

(Sec. 5) Sets forth additional rules for the tax treatment of high-income individuals who relinquish U.S. citizenship or residency to avoid U.S. taxation (expatriates). Treats all property of expatriates as sold for its fair market value on the day before the expatriation date and includes gain (over $600,000) or loss from such sale in the gross income of such expatriates. Allows expatriates to elect to defer payment of any tax resulting from expatriation if adequate security for payment of such tax is given.

Requires 30% withholding of tax for certain items of deferred compensation payable to expatriates.

Imposes a separate tax on gifts and bequests from expatriates exceeding $10,000, payable by the recipient of such gift or bequest.

(Sec. 6) Repeals provisions providing for a 36-month suspension of interest and penalties on tax underpayments for taxpayers who had not been notified of a tax deficiency by the IRS.

(Sec. 7) Increases penalties for failing to file correct information returns, failing to furnish correct payee statements, and failing to comply with other information reporting requirements.

(Sec. 8) Increases to 115.25% the rate for estimated tax payments for certain large corporations in the third quarter of 2012.