-CITE- 26 USC CHAPTER 80 - GENERAL RULES 01/02/2006 -EXPCITE- TITLE 26 - INTERNAL REVENUE CODE Subtitle F - Procedure and Administration CHAPTER 80 - GENERAL RULES -HEAD- CHAPTER 80 - GENERAL RULES -MISC1- Subchapter Sec.(!1) A. Application of internal revenue laws 7801 B. Effective date and related provisions 7851 C. Provisions affecting more than one subtitle 7871 -FOOTNOTE- (!1) Section numbers editorially supplied. -End- -CITE- 26 USC Subchapter A - Application of Internal Revenue Laws 01/02/2006 -EXPCITE- TITLE 26 - INTERNAL REVENUE CODE Subtitle F - Procedure and Administration CHAPTER 80 - GENERAL RULES Subchapter A - Application of Internal Revenue Laws -HEAD- SUBCHAPTER A - APPLICATION OF INTERNAL REVENUE LAWS -MISC1- Sec. 7801. Authority of Department of the Treasury. 7802. Internal Revenue Service Oversight Board. 7803. Commissioner of Internal Revenue; other officials. 7804. Other personnel. 7805. Rules and regulations. 7806. Construction of title. 7807. Rules in effect upon enactment of this title. 7808. Depositaries for collections. 7809. Deposit of collections. 7810. Revolving fund for redemption of real property. 7811. Taxpayer Assistance Orders. AMENDMENTS 1998 - Pub. L. 105-206, title I, Secs. 1101(c)(2), 1102(e)(1), 1104(b)(2), July 22, 1998, 112 Stat. 697, 704, 710, added items 7802 to 7804 and struck out former items 7802 "Commissioner of Internal Revenue; Assistant Commissioners; Taxpayer Advocate", 7803 "Other personnel", and 7804 "Effect of reorganization plans". 1996 - Pub. L. 104-168, title I, Sec. 101(b)(3), July 30, 1996, 110 Stat. 1456, added item 7802 and struck out former item 7802 "Commissioner of Internal Revenue; Assistant Commissioner (Employee Plans and Exempt Organizations)". 1988 - Pub. L. 100-647, title VI, Sec. 6230(b), Nov. 10, 1988, 102 Stat. 3734, added item 7811. 1983 - Pub. L. 97-473, title II, Sec. 202(c), Jan. 14, 1983, 96 Stat. 2610, added item for subchapter C. 1974 - Pub. L. 93-406, title II, Sec. 1051(c), Sept. 2, 1974, 88 Stat. 951, substituted "Commissioner of Internal Revenue; Assistant Commissioner (Employee Plans and Exempt Organizations)" for "Commissioner of Internal Revenue" in item 7802. 1966 - Pub. L. 89-719, title I, Sec. 112(c), Nov. 2, 1966, 80 Stat. 1146, added item 7810. -End- -CITE- 26 USC Sec. 7801 01/02/2006 -EXPCITE- TITLE 26 - INTERNAL REVENUE CODE Subtitle F - Procedure and Administration CHAPTER 80 - GENERAL RULES Subchapter A - Application of Internal Revenue Laws -HEAD- Sec. 7801. Authority of Department of the Treasury -STATUTE- (a) Powers and duties of Secretary (1) In general Except as otherwise expressly provided by law, the administration and enforcement of this title shall be performed by or under the supervision of the Secretary of the Treasury. (2) Administration and enforcement of certain provisions by Attorney General (A) In general The administration and enforcement of the following provisions of this title shall be performed by or under the supervision of the Attorney General; and the term "Secretary" or "Secretary of the Treasury" shall, when applied to those provisions, mean the Attorney General; and the term "internal revenue officer" shall, when applied to those provisions, mean any officer of the Bureau of Alcohol, Tobacco, Firearms, and Explosives so designated by the Attorney General: (i) Chapter 53. (ii) Chapters 61 through 80, to the extent such chapters relate to the enforcement and administration of the provisions referred to in clause (i). (B) Use of existing rulings and interpretations Nothing in this Act (!1) alters or repeals the rulings and interpretations of the Bureau of Alcohol, Tobacco, and Firearms in effect on the effective date of the Homeland Security Act of 2002, which concern the provisions of this title referred to in subparagraph (A). The Attorney General shall consult with the Secretary to achieve uniformity and consistency in administering provisions under chapter 53 of title 26, United States Code. [(b) Repealed. Pub. L. 97-258, Sec. 5(b), Sept. 13, 1982, 96 Stat. 1068, 1078] (c) Functions of Department of Justice unaffected Nothing in this section or section 301(f) of title 31 shall be considered to affect the duties, powers, or functions imposed upon, or vested in, the Department of Justice, or any officer thereof, by law existing on May 10, 1934. -SOURCE- (Aug. 16, 1954, ch. 736, 68A Stat. 915; Pub. L. 86-368, Sec. 1, Sept. 22, 1959, 73 Stat. 647; Pub. L. 88-426, title III, Sec. 305(39), Aug. 14, 1964, 78 Stat. 427; Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(B), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 97-258, Secs. 2(f)(1), 5(b), Sept. 13, 1982, 96 Stat. 1059, 1068, 1078; Pub. L. 107-296, title XI, Sec. 1112(k), Nov. 25, 2002, 116 Stat. 2277.) -REFTEXT- REFERENCES IN TEXT The effective date of the Homeland Security Act of 2002, referred to in subsec. (a)(2)(B), is 60 days after Nov. 25, 2002, see section 4 of Pub. L. 107-296, set out as an Effective Date note under section 101 of Title 6, Domestic Security. -MISC1- AMENDMENTS 2002 - Subsec. (a). Pub. L. 107-296 designated existing provisions as par. (1), inserted par. heading, and added par. (2). 1982 - Subsec. (b). Pub. L. 97-258, Sec. 5(b), struck out subsec. (b) which related to Office of General Counsel of Department of the Treasury. See section 301 of Title 31, Money and Finance. Subsec. (c). Pub. L. 97-258, Sec. 2(f)(1), inserted "or section 301(f) of title 31" after "Nothing in this section". 1976 - Subsec. (b). Pub. L. 94-455 substituted "Secretary of the Treasury" for "Secretary" in four places, in par. (1) after "prescribed by the", in par. (2) after "prescribed by the" and in third sentence thereof "The", and in par. (3) before "may appoint and fix". 1964 - Subsec. (b)(2). Pub. L. 88-426 struck out provisions which prescribed compensation of Assistant General Counsel. 1959 - Pub. L. 86-368 provided for Presidential appointment and for compensation of Assistant General Counsel who shall be Chief Counsel for Internal Revenue Service. EFFECTIVE DATE OF 2002 AMENDMENT Amendment by Pub. L. 107-296 effective 60 days after Nov. 25, 2002, see section 4 of Pub. L. 107-296, set out as an Effective Date note under section 101 of Title 6, Domestic Security. EFFECTIVE DATE OF 1964 AMENDMENT Amendment by Pub. L. 88-426 effective on first day of first pay period which begins on or after July 1, 1964, except to the extent provided in section 501(c) of Pub. L. 88-426, see section 501 of Pub. L. 88-426. EFFECTIVE DATE OF 1959 AMENDMENT Section 3 of Pub. L. 86-368 provided that: "(a) Except as otherwise provided in this Act, the amendments made by this Act [amending this section] shall take effect on the date of the enactment of this Act [Sept. 22, 1959]. "(b) The amendments made by section 2 of this Act [amending sections 7452 and 8023 of this title] shall take effect when the Chief Counsel for the Internal Revenue Service first appointed pursuant to the amendment made by section 1 of this Act [amending this section] qualifies and takes office." REPEALS Pub. L. 86-368, Sec. 1, Sept. 22, 1959, 73 Stat. 648; Pub. L. 88- 426, title III, Sec. 305(39), Aug. 14, 1964, 78 Stat. 427; and Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(B), Oct. 4, 1976, 90 Stat. 1834, cited as credits to this section, were repealed by Pub. L. 97-258, Sec. 5(b), Sept. 13, 1982, 96 Stat. 1079, 1080, 1082. SAVINGS PROVISION Section 4 of Pub. L. 86-368 provided that the position of Assistant General Counsel serving as Chief Counsel of the Internal Revenue Service was abolished as of the time that the Chief Counsel for the Internal Revenue Service appointed pursuant to the amendment to this section by Pub. L. 86-368, took office, but that Pub. L. 86-368 was not to be construed to otherwise abolish, terminate, or change any office or position, or employment of any officer or employee existing immediately preceding Sept. 22, 1959, and that any delegation of authority pursuant to Reorg. Plan No. 26 of 1950 or Reorg. Plan No. 2 of 1952 including any redelegation of authority, in effect immediately preceding Sept. 22, 1959, was to remain in effect unless distinctly inconsistent or manifestly incompatible with the amendment made to this section by Pub. L. 86- 368. -TRANS- TRANSFER OF FUNCTIONS For transfer of authorities, functions, personnel, and assets of the Bureau of Alcohol, Tobacco and Firearms, including the related functions of the Secretary of the Treasury, to the Department of Justice, see section 531(c) of Title 6, Domestic Security, and section 599A(c)(1) of Title 28, Judiciary and Judicial Procedure. -MISC2- ORDER OF SUCCESSION For order of succession during any period when both Secretary and Deputy Secretary of the Treasury are unable to perform functions and duties of office of Secretary, see Ex. Ord. No. 13246, Dec. 18, 2001, 66 F.R. 66270, set out as a note under section 3345 of Title 5, Government Organization and Employees. ELIMINATION OF USER FEE FOR REQUESTS TO IRS REGARDING PENSION PLANS Pub. L. 107-16, title VI, Sec. 620, June 7, 2001, 115 Stat. 110, related to elimination of user fees for certain requests to the Internal Revenue Service regarding pension plans, prior to repeal by Pub. L. 108-89, title II, Sec. 202(b)(3), Oct. 1, 2003, 117 Stat. 1133. ITEMIZED INCOME TAX RECEIPT Pub. L. 106-58, title VI, Sec. 650, Sept. 29, 1999, 113 Stat. 479, provided that: "(a) In General. - Not later than April 15, 2000, the Secretary of the Treasury shall establish an interactive program on an Internet website where any taxpayer may generate an itemized receipt showing a proportionate allocation (in money terms) of the taxpayer's total tax payments among the major expenditure categories. "(b) Information Necessary To Generate Receipt. - For purposes of generating an itemized receipt under subsection (a), the interactive program - "(1) shall only require the input of the taxpayer's total tax payments; and "(2) shall not require any identifying information relating to the taxpayer. "(c) Total Tax Payments. - For purposes of this section, total tax payments of an individual for any taxable year are - "(1) the tax imposed by subtitle A of the Internal Revenue Code of 1986 for such taxable year (as shown on his return); and "(2) the tax imposed by section 3101 of such Code on wages received during such taxable year. "(d) Content of Tax Receipt. - "(1) Major expenditure categories. - For purposes of subsection (a), the major expenditure categories are: "(A) National defense. "(B) International affairs. "(C) Medicaid. "(D) Medicare. "(E) Means-tested entitlements. "(F) Domestic discretionary. "(G) Social Security. "(H) Interest payments. "(I) All other. "(2) Other items on receipt. - "(A) In general. - In addition, the tax receipt shall include selected examples of more specific expenditure items, including the items listed in subparagraph (B), either at the budget function, subfunction, or program, project, or activity levels, along with any other information deemed appropriate by the Secretary of the Treasury and the Director of the Office of Management and Budget to enhance taxpayer understanding of the Federal budget. "(B) Listed items. - The expenditure items listed in this subparagraph are as follows: "(i) Public schools funding programs. "(ii) Student loans and college aid. "(iii) Low-income housing programs. "(iv) Food stamp and welfare programs. "(v) Law enforcement, including the Federal Bureau of Investigation, law enforcement grants to the States, and other Federal law enforcement personnel. "(vi) Infrastructure, including roads, bridges, and mass transit. "(vii) Farm subsidies. "(viii) Congressional Member and staff salaries. "(ix) Health research programs. "(x) Aid to the disabled. "(xi) Veterans health care and pension programs. "(xii) Space programs. "(xiii) Environmental cleanup programs. "(xiv) United States embassies. "(xv) Military salaries. "(xvi) Foreign aid. "(xvii) Contributions to the North Atlantic Treaty Organization. "(xviii) Amtrak. "(xix) United States Postal Service. "(e) Cost. - No charge shall be imposed to cover any cost associated with the production or distribution of the tax receipt. "(f) Regulations. - The Secretary of the Treasury may prescribe such regulations as may be necessary to carry out this section." REORGANIZATION OF INTERNAL REVENUE SERVICE Pub. L. 105-206, title I, Sec. 1001, July 22, 1998, 112 Stat. 689, provided that: "(a) In General. - The Commissioner of Internal Revenue shall develop and implement a plan to reorganize the Internal Revenue Service. The plan shall - "(1) supersede any organization or reorganization of the Internal Revenue Service based on any statute or reorganization plan applicable on the effective date of this section; "(2) eliminate or substantially modify the existing organization of the Internal Revenue Service which is based on a national, regional, and district structure; "(3) establish organizational units serving particular groups of taxpayers with similar needs; and "(4) ensure an independent appeals function within the Internal Revenue Service, including the prohibition in the plan of ex parte communications between appeals officers and other Internal Revenue Service employees to the extent that such communications appear to compromise the independence of the appeals officers. "(b) Savings Provisions. - "(1) Preservation of specific tax rights and remedies. - Nothing in the plan developed and implemented under subsection (a) shall be considered to impair any right or remedy, including trial by jury, to recover any internal revenue tax alleged to have been erroneously or illegally assessed or collected, or any penalty claimed to have been collected without authority, or any sum alleged to have been excessive or in any manner wrongfully collected under the internal revenue laws. For the purpose of any action to recover any such tax, penalty, or sum, all statutes, rules, and regulations referring to the collector of internal revenue, the principal officer for the internal revenue district, or the Secretary, shall be deemed to refer to the officer whose act or acts referred to in the preceding sentence gave rise to such action. The venue of any such action shall be the same as under existing law. "(2) Continuing effect of legal documents. - All orders, determinations, rules, regulations, permits, agreements, grants, contracts, certificates, licenses, registrations, privileges, and other administrative actions - "(A) which have been issued, made, granted, or allowed to become effective by the President, any Federal agency or official thereof, or by a court of competent jurisdiction, in the performance of any function transferred or affected by the reorganization of the Internal Revenue Service or any other administrative unit of the Department of the Treasury under this section; and "(B) which are in effect at the time this section takes effect, or were final before the effective date of this section and are to become effective on or after the effective date of this section, shall continue in effect according to their terms until modified, terminated, superseded, set aside, or revoked in accordance with law by the President, the Secretary of the Treasury, the Commissioner of Internal Revenue, or other authorized official, a court of competent jurisdiction, or by operation of law. "(3) Proceedings not affected. - The provisions of this section shall not affect any proceedings, including notices of proposed rulemaking, or any application for any license, permit, certificate, or financial assistance pending before the Department of the Treasury (or any administrative unit of the Department, including the Internal Revenue Service) at the time this section takes effect, with respect to functions transferred or affected by the reorganization under this section but such proceedings and applications shall continue. Orders shall be issued in such proceedings, appeals shall be taken therefrom, and payments shall be made pursuant to such orders, as if this section had not been enacted, and orders issued in any such proceedings shall continue in effect until modified, terminated, superseded, or revoked by a duly authorized official, by a court of competent jurisdiction, or by operation of law. Nothing in this paragraph shall be deemed to prohibit the discontinuance or modification of any such proceeding under the same terms and conditions and to the same extent that such proceeding could have been discontinued or modified if this section had not been enacted. "(4) Suits not affected. - The provisions of this section shall not affect suits commenced before the effective date of this section, and in all such suits, proceedings shall be had, appeals taken, and judgments rendered in the same manner and with the same effect as if this section had not been enacted. "(5) Nonabatement of actions. - No suit, action, or other proceeding commenced by or against the Department of the Treasury (or any administrative unit of the Department, including the Internal Revenue Service), or by or against any individual in the official capacity of such individual as an officer of the Department of the Treasury, shall abate by reason of the enactment of this section. "(6) Administrative actions relating to promulgation of regulations. - Any administrative action relating to the preparation or promulgation of a regulation by the Department of the Treasury (or any administrative unit of the Department, including the Internal Revenue Service) relating to a function transferred or affected by the reorganization under this section may be continued by the Department of the Treasury through any appropriate administrative unit of the Department, including the Internal Revenue Service with the same effect as if this section had not been enacted. "(c) Effective Date. - This section shall take effect on the date of the enactment of this Act [July 22, 1998]." INTERNAL REVENUE SERVICE MISSION TO FOCUS ON TAXPAYERS' NEEDS Pub. L. 105-206, title I, Sec. 1002, July 22, 1998, 112 Stat. 690, provided that: "The Internal Revenue Service shall review and restate its mission to place a greater emphasis on serving the public and meeting taxpayers' needs." EXPLANATION OF JOINT AND SEVERAL LIABILITY Pub. L. 105-206, title III, Sec. 3501, July 22, 1998, 112 Stat. 770, provided that: "(a) In General. - The Secretary of the Treasury or the Secretary's delegate shall, as soon as practicable, but not later than 180 days after the date of the enactment of this Act [July 22, 1998], establish procedures to clearly alert married taxpayers of their joint and several liabilities on all appropriate publications and instructions. "(b) Right To Limit Liability. - The procedures under subsection (a) shall include requirements that notice of an individual's right to relief under section 6015 of the Internal Revenue Code of 1986 shall be included in the statement required by section 6227 of the Omnibus Taxpayer Bill of Rights [Pub. L. 100-647, set out below] (Internal Revenue Service Publication No. 1) and in any collection- related notices." EXPLANATION OF TAXPAYERS' RIGHTS IN INTERVIEWS WITH INTERNAL REVENUE SERVICE Pub. L. 105-206, title III, Sec. 3502, July 22, 1998, 112 Stat. 770, provided that: "The Secretary of the Treasury or the Secretary's delegate shall, as soon as practicable, but not later than 180 days after the date of the enactment of this Act [July 22, 1998], revise the statement required by section 6227 of the Omnibus Taxpayer Bill of Rights [Pub. L. 100-647, set out below] (Internal Revenue Service Publication No. 1) to more clearly inform taxpayers of their rights - "(1) to be represented at interviews with the Internal Revenue Service by any person authorized to practice before the Internal Revenue Service; and "(2) to suspend an interview pursuant to section 7521(b)(2) of the Internal Revenue Code of 1986." DISCLOSURE OF CRITERIA FOR EXAMINATION SELECTION Pub. L. 105-206, title III, Sec. 3503, July 22, 1998, 112 Stat. 771, provided that: "(a) In General. - The Secretary of the Treasury or the Secretary's delegate shall, as soon as practicable, but not later than 180 days after the date of the enactment of this Act [July 22, 1998], incorporate into the statement required by section 6227 of the Omnibus Taxpayer Bill of Rights [Pub. L. 100-647, set out below] (Internal Revenue Service Publication No. 1) a statement which sets forth in simple and nontechnical terms the criteria and procedures for selecting taxpayers for examination. Such statement shall not include any information the disclosure of which would be detrimental to law enforcement, but shall specify the general procedures used by the Internal Revenue Service, including whether taxpayers are selected for examination on the basis of information available in the media or on the basis of information provided to the Internal Revenue Service by informants. "(b) Transmission to Committees of Congress. - The Secretary shall transmit drafts of the statement required under subsection (a) (or proposed revisions to any such statement) to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate on the same day." DISCLOSURE TO TAXPAYERS Pub. L. 105-206, title III, Sec. 3508, July 22, 1998, 112 Stat. 772, provided that: "The Secretary of the Treasury or the Secretary's delegate shall ensure that any instructions booklet accompanying an individual Federal income tax return form (including forms 1040, 1040A, 1040EZ, and any similar or successor forms) shall include, in clear language, in conspicuous print, and in a conspicuous place, a concise description of the conditions under which return information may be disclosed to any party outside the Internal Revenue Service, including disclosure to any State or agency, body, or commission (or legal representative) thereof." INTERNAL REVENUE SERVICE EMPLOYEE CONTACTS Pub. L. 105-206, title III, Sec. 3705, July 22, 1998, 112 Stat. 777, provided that: "(a) Notice. - The Secretary of the Treasury or the Secretary's delegate shall provide that - "(1) any manually generated correspondence received by a taxpayer from the Internal Revenue Service shall include in a prominent manner the name, telephone number, and unique identifying number of an Internal Revenue Service employee the taxpayer may contact with respect to the correspondence; "(2) any other correspondence or notice received by a taxpayer from the Internal Revenue Service shall include in a prominent manner a telephone number that the taxpayer may contact; and "(3) an Internal Revenue Service employee shall give a taxpayer during a telephone or personal contact the employee's name and unique identifying number. "(b) Single Contact. - The Secretary of the Treasury or the Secretary's delegate shall develop a procedure under which, to the extent practicable and if advantageous to the taxpayer, one Internal Revenue Service employee shall be assigned to handle a taxpayer's matter until it is resolved. "(c) Telephone Helpline in Spanish. - The Secretary of the Treasury or the Secretary's delegate shall provide, in appropriate circumstances, that taxpayer questions on telephone helplines of the Internal Revenue Service are answered in Spanish. "(d) Other Telephone Helpline Options. - The Secretary of the Treasury or the Secretary's delegate shall provide, in appropriate circumstances, on telephone helplines of the Internal Revenue Service an option for any taxpayer to talk to an Internal Revenue Service employee during normal business hours. The person shall direct phone questions of the taxpayer to other Internal Revenue Service personnel who can provide assistance to the taxpayer. "(e) Effective Dates. - "(1) In general. - Except as otherwise provided in this subsection, this section shall take effect 60 days after the date of the enactment of this Act [July 22, 1998]. "(2) Subsection (c). - Subsection (c) shall take effect on January 1, 2000. "(3) Subsection (d). - Subsection (d) shall take effect on January 1, 2000. "(4) Unique identifying number. - Any requirement under this section to provide a unique identifying number shall take effect 6 months after the date of the enactment of this Act [July 22, 1998]." LISTING OF LOCAL INTERNAL REVENUE SERVICE TELEPHONE NUMBERS AND ADDRESSES Pub. L. 105-206, title III, Sec. 3709, July 22, 1998, 112 Stat. 779, provided that: "The Secretary of the Treasury or the Secretary's delegate shall, as soon as practicable, provide that the local telephone numbers and addresses of Internal Revenue Service offices located in any particular area be listed in a telephone book for that area." STUDY OF NONCOMPLIANCE WITH INTERNAL REVENUE LAWS BY TAXPAYERS Pub. L. 105-206, title III, Sec. 3803, July 22, 1998, 112 Stat. 783, provided that: "Not later than 1 year after the date of the enactment of this Act [July 22, 1998], the Secretary of the Treasury and the Commissioner of Internal Revenue shall jointly conduct a study, in consultation with the Joint Committee on Taxation, of the noncompliance with internal revenue laws by taxpayers (including willful noncompliance and noncompliance due to tax law complexity or other factors) and report the findings of such study to Congress." TAX LAW COMPLEXITY ANALYSIS; COMMISSIONER STUDY Pub. L. 105-206, title IV, Sec. 4022(a), July 22, 1998, 112 Stat. 785, provided that: "(1) In general. - The Commissioner of Internal Revenue shall conduct each year after 1998 an analysis of the sources of complexity in administration of the Federal tax laws. Such analysis may include an analysis of - "(A) questions frequently asked by taxpayers with respect to return filing; "(B) common errors made by taxpayers in filling out their returns; "(C) areas of law which frequently result in disagreements between taxpayers and the Internal Revenue Service; "(D) major areas of law in which there is no (or incomplete) published guidance or in which the law is uncertain; "(E) areas in which revenue officers make frequent errors interpreting or applying the law; "(F) the impact of recent legislation on complexity; and "(G) forms supplied by the Internal Revenue Service, including the time it takes for taxpayers to complete and review forms, the number of taxpayers who use each form, and how recent legislation has affected the time it takes to complete and review forms. "(2) Report. - The Commissioner shall not later than March 1 of each year report the results of the analysis conducted under paragraph (1) for the preceding year to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate. The report shall include any recommendations - "(A) for reducing the complexity of the administration of Federal tax laws; and "(B) for repeal or modification of any provision the Commissioner believes adds undue and unnecessary complexity to the administration of the Federal tax laws." NATIONAL COMMISSION ON RESTRUCTURING INTERNAL REVENUE SERVICE Pub. L. 104-52, title VI, Sec. 637, Nov. 19, 1995, 109 Stat. 509, as amended by Pub. L. 104-134, title II, Sec. 2904(a), Apr. 26, 1996, 110 Stat. 1321-333; Pub. L. 104-208, div. A, title I, Sec. 101(f) [title VI, Sec. 643(a)-(e)], Sept. 30, 1996, 110 Stat. 3009- 314, 3009-365, provided that: "(a) Findings. - The Congress finds the following: "(1) While the budget for the Internal Revenue Service (hereafter referred to as the 'IRS') has risen from $2.5 billion in fiscal year 1979 to $7.3 billion in fiscal year 1996, tax returns processing has not become significantly faster, tax collection rates have not significantly increased, and the accuracy and timeliness of taxpayer assistance has not significantly improved. "(2) To date, the Tax Systems Modernization (TSM) program has cost the taxpayers $2.5 billion, with an estimated cost of $8 billion. Despite this investment, modernization efforts were recently described by the GAO as 'chaotic' and 'ad hoc'. "(3) While the IRS maintains that TSM will increase efficiency and thus revenues, Congress has had to appropriate additional funds in recent years for compliance initiatives in order to increase tax revenues. "(4) Because TSM has not been implemented, the IRS continues to rely on paper returns, processing a total of 14 billion pieces of paper every tax season. This results in an extremely inefficient system. "(5) This lack of efficiency reduces the level of customer service and impedes the ability of the IRS to collect revenue. "(6) The present status of the IRS shows the need for the establishment of a Commission which will examine the organization of IRS and recommend actions to expedite the implementation of TSM and improve service to taxpayers. "(b) Composition of the Commission. - "(1) Establishment. - To carry out the purposes of this section, there is established a National Commission on Restructuring the Internal Revenue Service (in this section referred to as the 'Commission'). "(2) Composition. - The Commission shall be composed of seventeen members, as follows: "(A) Five members appointed by the President, two from the executive branch of the Government, two from private life, and one from an organization that represents a substantial number of Internal Revenue Service employees. "(B) Four members appointed by the Majority Leader of the Senate, one from Members of the Senate and three from private life. "(C) Two members appointed by the Minority Leader of the Senate, one from Members of the Senate and one from private life. "(D) Four members appointed by the Speaker of the House of Representatives, one from Members of the House of Representatives and three from private life. "(E) Two members appointed by the Minority Leader of the House of Representatives, one from Members of the House of Representatives and one from private life. "The Commissioner of the Internal Revenue Service shall be an ex officio member of the Commission. "(3) Co-Chairs. - The Commission shall elect Co-Chairs from among its members. "(4) Meeting; quorum; vacancies. - After its initial meeting, the Commission shall meet upon the call of the Co-Chairs or a majority of its members. Nine members of the Commission shall constitute a quorum. Any vacancy in the Commission shall not affect its powers, but shall be filled in the same manner in which the original appointment was made. "(5) Appointment; initial meeting. - "(A) Appointment. - It is the sense of the Congress that members of the Committee [Commission] should be appointed not more than 60 days after the date of the enactment of this section [Nov. 19, 1995]. "(B) Initial meeting. - If, after 60 days from the date of the enactment of this section, seven or more members of the Commission have been appointed, members who have been appointed may meet and select Co-Chairs who thereafter shall have the authority to begin the operations of the Commission, including the hiring of staff. "(c) Functions of Commission. - "(1) In general. - The functions of the Commission shall be - "(A) to conduct, for a period of not to exceed 15 months from the date of its first meeting, the review described in paragraph (2), and "(B) to submit to the Congress a final report of the results of the review, including recommendations for restructuring the IRS. "(2) Review. - The Commission shall review - "(A) the present practices of the IRS, especially with respect to - "(i) its organizational structure; "(ii) its paper processing and return processing activities; "(iii) its infrastructure; and "(iv) the collection process; "(B) requirements for improvement in the following areas: "(i) making returns processing 'paperless'; "(ii) modernizing IRS operations; "(iii) improving the collections process without major personnel increases or increased funding; "(iv) improving taxpayer accounts management; "(v) improving the accuracy of information requested by taxpayers in order to file their returns; and "(vi) changing the culture of the IRS to make the organization more efficient, productive, and customer- oriented; "(C) whether the IRS could be replaced with a quasi- governmental agency with tangible incentives and internally managing its programs and activities and for modernizing its activities, and "(D) whether the IRS could perform other collection, information, and financial service functions of the Federal Government. "(d) Powers of the Commission. - "(1) In general. - (A) The Commission or, on the authorization of the Commission, any subcommittee or member thereof, may, for the purpose of carrying out the provisions of this section - "(i) hold such hearings and sit and act at such times and places, take such testimony, receive such evidence, administer such oaths, and "(ii) require, by subpoena or otherwise, the attendance and testimony of such witnesses and the production of such books, records, correspondence, memoranda, papers, and documents, as the Commission or such designated subcommittee or designated member may deem advisable. "(B) Subpoenas issued under subparagraph (A)(ii) may be issued under the signature of the Co-Chairs of the Commission, the chairman of any designated subcommittee, or any designated member, and may be served by any person designated by such Co- Chairs, subcommittee chairman, or member. The provisions of sections 102 through 104 of the Revised Statutes of the United States (2 U.S.C. 192-194) shall apply in the case of any failure of any witness to comply with any subpoena or to testify when summoned under authority of this section. "(2) Contracting. - The Commission may, to such extent and in such amounts as are provided in appropriation Acts, enter into contracts to enable the Commission to discharge its duties under this section. "(3) Information from federal agencies. - The Commission is authorized to secure directly from any executive department, bureau, agency, board, commission, office, independent establishment, or instrumentality of the Government, information, suggestions, estimates, and statistics for the purposes of this section. Each such department, bureau, agency, board, commission, office, establishment, or instrumentality shall, to the extent authorized by law, furnish such information, suggestions, estimates, and statistics directly to the Commission, upon request made by the Co-Chairs. "(4) Assistance from federal agencies. - (A) The Secretary of the Treasury is authorized on a nonreimbursable basis to provide the Commission with administrative services, funds, facilities, staff, and other support services for the performance of the Commission's functions. "(B) The Administrator of General Services shall provide to the Commission on a nonreimbursable basis such administrative support services as the Commission may request. "(C) In addition to the assistance set forth in subparagraphs (A) and (B), departments and agencies of the United States are authorized to provide to the Commission such services, funds, facilities, staff, and other support services as they may deem advisable and as may be authorized by law. "(5) Postal services. - The Commission may use the United States mails in the same manner and under the same conditions as departments and agencies of the United States. "(6) Gifts. - The Commission may accept, use, and dispose of gifts or donations of services or property in carrying out its duties under this section. "(e) Staff of the Commission. - "(1) In general. - The Co-Chairs, in accordance with rules agreed upon by the Commission, may appoint and fix the compensation of a staff director and such other personnel as may be necessary to enable the Commission to carry out its functions, without regard to the provisions of title 5, United States Code, governing appointments in the competitive service, and without regard to the provisions of chapter 51 and subchapter III of chapter 53 of such title relating to classification and General Schedule pay rates, except that no rate of pay fixed under this subsection may exceed the equivalent of that payable to a person occupying a position at level V of the Executive Schedule under section 5316 of title 5, United States Code. Any Federal Government employee may be detailed to the Commission without reimbursement from the Commission, and such detailee shall retain the rights, status, and privileges of his or her regular employment without interruption. "(2) Consultant services. - The Commission is authorized to procure the services of experts and consultants in accordance with section 3109 of title 5, United States Code, but at rates not to exceed the daily rate paid a person occupying a position at level IV of the Executive Schedule under section 5315 of title 5, United States Code. "(f) Compensation and Travel Expenses. - "(1) Compensation. - (A) Except as provided in subparagraph (B), each member of the Commission may be compensated at not to exceed the daily equivalent of the annual rate of basic pay in effect for a position at level IV of the Executive Schedule under section 5315 of title 5, United States Code, for each day during which that member is engaged in the actual performance of the duties of the Commission. "(B) Members of the Commission who are officers or employees of the United States or Members of Congress shall receive no additional pay on account of their service on the Commission. "(2) Travel expenses. - While away from their homes or regular places of business in the performance of services for the Commission, members of the Commission may be allowed travel expenses, including per diem in lieu of subsistence, in the same manner as persons employed intermittently in the Government service are allowed expenses under section 5703(b) of title 5, United States Code. "(g) Final Report of Commission; Termination. - "(1) Final report. - Not later than 15 months after the date of the first meeting of the Commission, the Commission shall submit to the Congress its final report, as described in subsection (c)(2). "(2) Termination. - (A) The Commission, and all the authorities of this section, shall terminate on the date which is 60 days after the date on which a final report is required to be transmitted under paragraph (1). "(B) The Commission may use the 60-day period referred to in subparagraph (A) for the purpose of concluding its activities, including providing testimony to committees of Congress concerning its final report and disseminating that report. "(h) Authorization of Appropriations. - Such sums as may be necessary are authorized to be appropriated for the activities of the Commission. "(i) Appropriations. - Notwithstanding any other provision of this Act, $1,000,000 shall be available from fiscal year 1996 funds appropriated to the Internal Revenue Service, 'Information systems' account, for the activities of the Commission, to remain available until expended." [Pub. L. 104-208, div. A, title I, Sec. 101(f) [title VI, Sec. 643(f)], Sept. 30, 1996, 110 Stat. 3009-314, 3009-366, provided that: "The amendments made by this section [amending section 637 of Pub. L. 104-52, set out above] shall take effect as if included in the provisions of the Treasury, Postal Service, and General Government Appropriations Act, 1996 [Pub. L. 104-52]."] [Pub. L. 104-134, title II, Sec. 2904(b), Apr. 26, 1996, 110 Stat. 1321-333, provided that: "The amendments made by this section [amending section 637 of Pub. L. 104-52, set out above] shall take effect as if included in the provisions of the Treasury, Postal Service, and General Government Appropriations Act, 1996 [Pub. L. 104-52]."] FEES FOR SERVICES RENDERED Pub. L. 103-329, title I, Sec. 3, Sept. 30, 1994, 108 Stat. 2388, as amended by Pub. L. 104-19, title I, July 27, 1995, 109 Stat. 227; Pub. L. 109-115, div. A, title II, Sec. 209, Nov. 30, 2005, 119 Stat. 243, provided that: "The Secretary of the Treasury may establish new fees or raise existing fees for services provided by the Internal Revenue Service to increase receipts, where such fees are authorized by another law. The Secretary of the Treasury may spend the new or increased fee receipts to supplement appropriations made available to the Internal Revenue Service appropriations accounts in fiscal years 1995 and thereafter: Provided, That the Secretary shall base such fees on the costs of providing specified services to persons paying such fees: Provided further, That the Secretary shall provide quarterly reports to the Congress on the collection of such fees and how they are being expended by the Service." DISCLOSURE OF RIGHTS OF TAXPAYERS Pub. L. 100-647, title VI, Sec. 6227, Nov. 10, 1988, 102 Stat. 3731, provided that: "(a) In General. - The Secretary of the Treasury shall, as soon as practicable, but not later than 180 days after the date of the enactment of this Act [Nov. 10, 1988], prepare a statement which sets forth in simple and nontechnical terms - "(1) the rights of a taxpayer and the obligations of the Internal Revenue Service (hereinafter in this section referred to as the 'Service') during an audit; "(2) the procedures by which a taxpayer may appeal any adverse decision of the Service (including administrative and judicial appeals); "(3) the procedures for prosecuting refund claims and filing of taxpayer complaints; and "(4) the procedures which the Service may use in enforcing the internal revenue laws (including assessment, jeopardy assessment, levy and distraint, and enforcement of liens). "(b) Transmission to Committees of Congress. - The Secretary of the Treasury shall transmit drafts of the statement required under subsection (a) (or proposed revisions of any such statement) to the Committee on Ways and Means of the House of Representatives, the Committee on Finance of the Senate, and the Joint Committee on Taxation on the same day. "(c) Distribution. - The statement prepared in accordance with subsections (a) and (b) shall be distributed by the Secretary of the Treasury to all taxpayers the Secretary contacts with respect to the determination or collection of any tax (other than by providing tax forms). The Secretary shall take such actions as the Secretary deems necessary to ensure that such distribution does not result in multiple statements being sent to any one taxpayer." FEES FOR REQUESTS FOR RULING, DETERMINATION, AND SIMILAR LETTERS Pub. L. 100-203, title X, Sec. 10511, Dec. 22, 1987, 101 Stat. 1330-446, as amended by Pub. L. 101-508, title XI, Sec. 11319(a), Nov. 5, 1990, 104 Stat. 1388-460; Pub. L. 103-465, title VII, Sec. 743, Dec. 8, 1994, 108 Stat. 5011; Pub. L. 104-117, Sec. 2, Mar. 20, 1996, 110 Stat. 828, related to program requiring the payment of user fees for certain requests to the Internal Revenue Service, prior to repeal by Pub. L. 108-89, title II, Sec. 202(b)(2), Oct. 1, 2003, 117 Stat. 1133. STUDY OF TAX INCENTIVES FOR EXPENDITURES REQUIRED BY OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION AND MINING HEALTH AND SAFETY ADMINISTRATION Pub. L. 95-600, title V, Sec. 552, Nov. 6, 1978, 92 Stat. 2891, authorized the Secretary of the Treasury to conduct an investigation into the appropriateness of providing additional tax incentives for expenditures required by the Occupational Safety and Health Act, section 651 et seq. of Title 29, Labor, and the Mining Safety and Health Administration of the Department of Labor and to submit a report on such investigation to Congress before Apr. 1, 1979, together with any legislative recommendations. STUDY OF TAXATION OF NONRESIDENT ALIEN REAL ESTATE TRANSACTIONS IN THE UNITED STATES Pub. L. 95-600, title V, Sec. 553, Nov. 6, 1978, 92 Stat. 2891, authorized the Secretary of the Treasury to make a study of the appropriate tax treatment to be given to income derived from, or gain realized on, the sale of interests in United States property held by nonresident aliens or foreign corporations and to submit a report on such study to Congress no later than six months from Nov. 6, 1978, together with any recommendations. STUDY AND INVESTIGATION OF INTERNAL REVENUE CODE PROVISIONS WHICH IMPEDE OR DISCOURAGE RECYCLING OF SOLID WASTE MATERIALS; PRESIDENTIAL AND CONGRESSIONAL REPORT Pub. L. 94-568, Sec. 4, Oct. 20, 1976, 90 Stat. 2698, provided that the Secretary of the Treasury, in cooperation with the Administrator of the Environmental Protection Agency, make a complete study of all provisions of the Internal Revenue Code of 1954 which impeded or discouraged the recycling of solid waste materials and to report to the President and Congress, not later than Apr. 20, 1977, his findings, together with specific legislative proposals designed to increase and encourage the recycling of solid waste materials and detailed revenue cost estimates. -EXEC- EX. ORD. NO. 13051. INTERNAL REVENUE SERVICE MANAGEMENT BOARD Ex. Ord. No. 13051, June 24, 1997, 62 F.R. 34609, provided: By the authority vested in me as President by the Constitution and the laws of the United States of America, including 31 U.S.C. 301 and 26 U.S.C. 7801(a), and in order to establish a permanent oversight board to assist the Secretary of the Treasury ("Secretary") in ensuring effective management of the Internal Revenue Service, it is hereby ordered as follows: Section 1. Establishment. (a) There is hereby established within the Department of the Treasury the Internal Revenue Service Management Board ("Board"). (b) The Board shall consist of: (1) the Deputy Secretary of the Treasury, who shall serve as Chair of the Board; (2) the Assistant Secretary of the Treasury (Management) and the Chief Financial Officer, who shall serve as Vice Chairs; (3) the Assistant Secretary of the Treasury (Tax Policy); (4) the Under Secretary of the Treasury (Enforcement); (5) the Deputy Assistant Secretary of the Treasury (Departmental Finance and Management); (6) the Deputy Assistant Secretary of the Treasury (Information Systems)/Chief Information Officer; (7) the Assistant Secretary of the Treasury (Legislative Affairs and Public Liaison); (8) the General Counsel for the Department of the Treasury; (9) the Director, Office of Security, Department of the Treasury; (10) the Senior Procurement Executive for the Department of the Treasury; (11) the Commissioner of Internal Revenue; (12) the Deputy Commissioner of Internal Revenue; (13) the Associate Commissioner of Internal Revenue for Modernization/Chief Information Officer of the Internal Revenue Service; (14) the Deputy Director for Management, Office of Management and Budget; (15) the Administrator for Federal Procurement Policy, Office of Management and Budget; (16) a representative of the Office of the Vice President designated by the Vice President; (17) a representative of the Office of Management and Budget designated by the Director of such office; (18) a representative of the Office of Personnel Management designated by the Director of such office; (19) representatives of such other Government agencies as may be determined from time to time by the Secretary of the Treasury, designated by the head of such agency; and (20) such other officers or employees of the Department of the Treasury as may be designated by the Secretary. (c) A member of the Board described in paragraphs (16) through (20) of subsection (b) may be removed by the official who designated such member. (d) The Board may seek the views, consistent with 18 U.S.C. 205, of Internal Revenue Service employee representatives on matters considered by the Board under section 3 of this order. Sec. 2. Structure. There shall be an Executive Committee of the full Board, the members of which shall be appointed by the Secretary. Sec. 3. Functions. (a) The Board shall directly support the Secretary's oversight of the management and operation of the Internal Revenue Service. This includes: (1) working through the Deputy Secretary, assisting the Secretary on the full range of high-level management issues and concerns affecting the Internal Revenue Service, particularly those that have a significant impact on operations, modernization, and customer service. (2) acting through the Executive Committee, serving as the primary review for strategic decisions concerning modernization of the Internal Revenue Service, including modernization direction, strategy, significant reorganization plans, performance metrics, budgetary issues, major capital investments, and compensation of personnel. (b) The Board shall meet at least monthly and shall prescribe such bylaws or procedures as the Board deems appropriate. (c) The Board shall prepare semiannual reports to the President and to the Congress, which shall be transmitted by the Secretary of the Treasury. Sec. 4. Administration. To the extent permitted by law and subject to the availability of appropriations, the Secretary shall provide the Board administrative services, facilities, staff, and such other financial support services as may be necessary for the performance of its functions under this order. Sec. 5. Judicial Review. This order is intended only to improve the internal management of the Internal Revenue Service and is not intended, and shall not be construed, to create any right or benefit, substantive or procedural, enforceable at law by a party against the United States, its agencies, its officers, or its employees. William J. Clinton. -FOOTNOTE- (!1) So in original. -End- -CITE- 26 USC Sec. 7802 01/02/2006 -EXPCITE- TITLE 26 - INTERNAL REVENUE CODE Subtitle F - Procedure and Administration CHAPTER 80 - GENERAL RULES Subchapter A - Application of Internal Revenue Laws -HEAD- Sec. 7802. Internal Revenue Service Oversight Board -STATUTE- (a) Establishment There is established within the Department of the Treasury the Internal Revenue Service Oversight Board (hereafter in this subchapter referred to as the "Oversight Board"). (b) Membership (1) Composition The Oversight Board shall be composed of nine members, as follows: (A) six members shall be individuals who are not otherwise Federal officers or employees and who are appointed by the President, by and with the advice and consent of the Senate. (B) one member shall be the Secretary of the Treasury or, if the Secretary so designates, the Deputy Secretary of the Treasury. (C) one member shall be the Commissioner of Internal Revenue. (D) one member shall be an individual who is a full-time Federal employee or a representative of employees and who is appointed by the President, by and with the advice and consent of the Senate. (2) Qualifications and terms (A) Qualifications Members of the Oversight Board described in paragraph (1)(A) shall be appointed without regard to political affiliation and solely on the basis of their professional experience and expertise in one or more of the following areas: (i) Management of large service organizations. (ii) Customer service. (iii) Federal tax laws, including tax administration and compliance. (iv) Information technology. (v) Organization development. (vi) The needs and concerns of taxpayers. (vii) The needs and concerns of small businesses. In the aggregate, the members of the Oversight Board described in paragraph (1)(A) should collectively bring to bear expertise in all of the areas described in the preceding sentence. (B) Terms Each member who is described in subparagraph (A) or (D) of paragraph (1) shall be appointed for a term of 5 years, except that of the members first appointed under paragraph (1)(A) - (i) two members shall be appointed for a term of 3 years, (ii) two members shall be appointed for a term of 4 years, and (iii) two members shall be appointed for a term of 5 years. (C) Reappointment An individual who is described in subparagraph (A) or (D) of paragraph (1) may be appointed to no more than two 5-year terms on the Oversight Board. (D) Vacancy Any vacancy on the Oversight Board shall be filled in the same manner as the original appointment. Any member appointed to fill a vacancy occurring before the expiration of the term for which the member's predecessor was appointed shall be appointed for the remainder of that term. (3) Ethical considerations (A) Financial disclosure During the entire period that an individual appointed under subparagraph (A) or (D) of paragraph (1) is a member of the Oversight Board, such individual shall be treated as serving as an officer or employee referred to in section 101(f) of the Ethics in Government Act of 1978 for purposes of title I of such Act, except that section 101(d) of such Act shall apply without regard to the number of days of service in the position. (B) Restrictions on post-employment For purposes of section 207(c) of title 18, United States Code, an individual appointed under subparagraph (A) or (D) of paragraph (1) shall be treated as an employee referred to in section 207(c)(2)(A)(i) of such title during the entire period the individual is a member of the Board, except that subsections (c)(2)(B) and (f) of section 207 of such title shall not apply. (C) Members who are special Government employees If an individual appointed under subparagraph (A) or (D) of paragraph (1) is a special Government employee, the following additional rules apply for purposes of chapter 11 of title 18, United States Code: (i) Restriction on representation In addition to any restriction under section 205(c) of title 18, United States Code, except as provided in subsections (d) through (i) of section 205 of such title, such individual (except in the proper discharge of official duties) shall not, with or without compensation, represent anyone to or before any officer or employee of - (I) the Oversight Board or the Internal Revenue Service on any matter; (II) the Department of the Treasury on any matter involving the internal revenue laws or involving the management or operations of the Internal Revenue Service; or (III) the Department of Justice with respect to litigation involving a matter described in subclause (I) or (II). (ii) Compensation for services provided by another For purposes of section 203 of such title - (I) such individual shall not be subject to the restrictions of subsection (a)(1) thereof for sharing in compensation earned by another for representations on matters covered by such section, and (II) a person shall not be subject to the restrictions of subsection (a)(2) thereof for sharing such compensation with such individual. (D) Waiver The President may, only at the time the President nominates the member of the Oversight Board described in paragraph (1)(D), waive for the term of the member any appropriate provision of chapter 11 of title 18, United States Code, to the extent such waiver is necessary to allow such member to participate in the decisions of the Board while continuing to serve as a full-time Federal employee or a representative of employees. Any such waiver shall not be effective unless a written intent of waiver to exempt such member (and actual waiver language) is submitted to the Senate with the nomination of such member. (4) Quorum Five members of the Oversight Board shall constitute a quorum. A majority of members present and voting shall be required for the Oversight Board to take action. (5) Removal (A) In general Any member of the Oversight Board appointed under subparagraph (A) or (D) of paragraph (1) may be removed at the will of the President. (B) Secretary and Commissioner An individual described in subparagraph (B) or (C) of paragraph (1) shall be removed upon termination of service in the office described in such subparagraph. (6) Claims (A) In general Members of the Oversight Board who are described in subparagraph (A) or (D) of paragraph (1) shall have no personal liability under Federal law with respect to any claim arising out of or resulting from an act or omission by such member within the scope of service as a member. (B) Effect on other law This paragraph shall not be construed - (i) to affect any other immunities and protections that may be available to such member under applicable law with respect to such transactions; (ii) to affect any other right or remedy against the United States under applicable law; or (iii) to limit or alter in any way the immunities that are available under applicable law for Federal officers and employees. (c) General responsibilities (1) Oversight (A) In general The Oversight Board shall oversee the Internal Revenue Service in its administration, management, conduct, direction, and supervision of the execution and application of the internal revenue laws or related statutes and tax conventions to which the United States is a party. (B) Mission of IRS As part of its oversight functions described in subparagraph (A), the Oversight Board shall ensure that the organization and operation of the Internal Revenue Service allows it to carry out its mission. (C) Confidentiality The Oversight Board shall ensure that appropriate confidentiality is maintained in the exercise of its duties. (2) Exceptions The Oversight Board shall have no responsibilities or authority with respect to - (A) the development and formulation of Federal tax policy relating to existing or proposed internal revenue laws, related statutes, and tax conventions, (B) specific law enforcement activities of the Internal Revenue Service, including specific compliance activities such as examinations, collection activities, and criminal investigations, (C) specific procurement activities of the Internal Revenue Service, or (D) except as provided in subsection (d)(3), specific personnel actions. (d) Specific responsibilities The Oversight Board shall have the following specific responsibilities: (1) Strategic plans To review and approve strategic plans of the Internal Revenue Service, including the establishment of - (A) mission and objectives, and standards of performance relative to either, and (B) annual and long-range strategic plans. (2) Operational plans To review the operational functions of the Internal Revenue Service, including - (A) plans for modernization of the tax system, (B) plans for outsourcing or managed competition, and (C) plans for training and education. (3) Management To - (A) recommend to the President candidates for appointment as the Commissioner of Internal Revenue and recommend to the President the removal of the Commissioner; (B) review the Commissioner's selection, evaluation, and compensation of Internal Revenue Service senior executives who have program management responsibility over significant functions of the Internal Revenue Service; and (C) review and approve the Commissioner's plans for any major reorganization of the Internal Revenue Service. (4) Budget To - (A) review and approve the budget request of the Internal Revenue Service prepared by the Commissioner; (B) submit such budget request to the Secretary of the Treasury; and (C) ensure that the budget request supports the annual and long-range strategic plans. (5) Taxpayer protection To ensure the proper treatment of taxpayers by the employees of the Internal Revenue Service. The Secretary shall submit the budget request referred to in paragraph (4)(B) for any fiscal year to the President who shall submit such request, without revision, to Congress together with the President's annual budget request for the Internal Revenue Service for such fiscal year. (e) Board personnel matters (1) Compensation of members (A) In general Each member of the Oversight Board who - (i) is described in subsection (b)(1)(A); or (ii) is described in subsection (b)(1)(D) and is not otherwise a Federal officer or employee, shall be compensated at a rate of $30,000 per year. All other members shall serve without compensation for such service. (B) Chairperson In lieu of the amount specified in subparagraph (A), the Chairperson of the Oversight Board shall be compensated at a rate of $50,000 per year. (2) Travel expenses (A) In general The members of the Oversight Board shall be allowed travel expenses, including per diem in lieu of subsistence, at rates authorized for employees of agencies under subchapter I of chapter 57 of title 5, United States Code, to attend meetings of the Oversight Board and, with the advance approval of the Chairperson of the Oversight Board, while otherwise away from their homes or regular places of business for purposes of duties as a member of the Oversight Board. (B) Report The Oversight Board shall include in its annual report under subsection (f)(3)(A) information with respect to the travel expenses allowed for members of the Oversight Board under this paragraph. (3) Staff (A) In general The Chairperson of the Oversight Board may appoint and terminate any personnel that may be necessary to enable the Board to perform its duties. (B) Detail of Government employees Upon request of the Chairperson of the Oversight Board, a Federal agency shall detail a Federal Government employee to the Oversight Board without reimbursement. Such detail shall be without interruption or loss of civil service status or privilege. (4) Procurement of temporary and intermittent services The Chairperson of the Oversight Board may procure temporary and intermittent services under section 3109(b) of title 5, United States Code. (f) Administrative matters (1) Chair (A) Term The members of the Oversight Board shall elect for a 2-year term a chairperson from among the members appointed under subsection (b)(1)(A). (B) Powers Except as otherwise provided by a majority vote of the Oversight Board, the powers of the Chairperson shall include - (i) establishing committees; (ii) setting meeting places and times; (iii) establishing meeting agendas; and (iv) developing rules for the conduct of business. (2) Meetings The Oversight Board shall meet at least quarterly and at such other times as the Chairperson determines appropriate. (3) Reports (A) Annual The Oversight Board shall each year report with respect to the conduct of its responsibilities under this title to the President, the Committees on Ways and Means, Government Reform and Oversight, and Appropriations of the House of Representatives and the Committees on Finance, Governmental Affairs, and Appropriations of the Senate. (B) Additional report Upon a determination by the Oversight Board under subsection (c)(1)(B) that the organization and operation of the Internal Revenue Service are not allowing it to carry out its mission, the Oversight Board shall report such determination to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate. -SOURCE- (Aug. 16, 1954, ch. 736, 68A Stat. 915; Pub. L. 93-406, title II, Sec. 1051(a), Sept. 2, 1974, 88 Stat. 951; Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), (B), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 97-258, Sec. 2(f)(2), Sept. 13, 1982, 96 Stat. 1059; Pub. L. 100- 647, title VI, Sec. 6235(a), Nov. 10, 1988, 102 Stat. 3737; Pub. L. 104-168, title I, Sec. 101(a), (b)(2), July 30, 1996, 110 Stat. 1453, 1455; Pub. L. 105-206, title I, Sec. 1101(a), July 22, 1998, 112 Stat. 691; Pub. L. 106-554, Sec. 1(a)(7) [title III, Sec. 319(27)], Dec. 21, 2000, 114 Stat. 2763, 2763A-648.) -REFTEXT- REFERENCES IN TEXT The Ethics in Government Act of 1978, referred to in subsec. (b)(3)(A), is Pub. L. 95-521, Oct. 26, 1978, 92 Stat. 1824, as amended. Title I of the Act is set out in the Appendix to Title 5, Government Organization and Employees. For complete classification of this Act to the Code, see Short Title note set out under section 101 of Pub. L. 95-521 in the Appendix to Title 5 and Tables. -MISC1- AMENDMENTS 2000 - Subsec. (b)(2)(B)(ii). Pub. L. 106-554 substituted a comma for semicolon before "and". 1998 - Pub. L. 105-206 amended section catchline and text of section generally, substituting present provisions for provisions which: in subsec. (a), declared that there shall be in the Department of the Treasury a Commissioner of Internal Revenue, appointed by the President, with such duties and powers as prescribed by Secretary of the Treasury; in subsec. (b), established Office of Employee Plans and Exempt Organizations to carry out functions with respect to organizations exempt from tax and with respect to plans to which part I of subchapter D of chapter 1 applied; in subsec. (c), established Office for Taxpayer Services such as telephone, walk-in, and taxpayer educational services, and design and production of forms; and in subsec. (d), established Office of Taxpayer Advocate and set forth functions of Office and responsibilities of Commissioner regarding response to recommendations of Office. See section 7803 of this title. 1996 - Pub. L. 104-168, Sec. 101(b)(2), substituted "Commissioners; Taxpayer Advocate." for "Commissioner (Employee Plans and Exempt Organizations)" in section catchline. Subsec. (d). Pub. L. 104-168, Sec. 101(a), added subsec. (d). 1988 - Subsec. (c). Pub. L. 100-647 added subsec. (c). 1982 - Subsec. (b). Pub. L. 97-258 redesignated existing provisions as par. (1), added par. (1) heading, and added par. (2). Par. (2) is based on provisions that appeared in section 1037 of former Title 31, Money and Finance, prior to enactment of Title 31 by Pub. L. 97-258. 1976 - Subsec. (a). Pub. L. 94-455, Sec. 1906(b)(13)(B), substituted "Secretary of the Treasury" for "Secretary" after "prescribed by the". Subsec. (b). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out "or his delegate" after "Secretary". 1974 - Pub. L. 93-406 designated existing provisions as subsec. (a) and added subsec. (b). -CHANGE- CHANGE OF NAME Committee on Governmental Affairs of Senate changed to Committee on Homeland Security and Governmental Affairs of Senate, effective Jan. 4, 2005, by Senate Resolution No. 445, One Hundred Eighth Congress, Oct. 9, 2004. Committee on Government Reform and Oversight of House of Representatives changed to Committee on Government Reform of House of Representatives by House Resolution No. 5, One Hundred Sixth Congress, Jan. 6, 1999. -MISC2- EFFECTIVE DATE OF 1998 AMENDMENT Pub. L. 105-206, title I, Sec. 1101(d), July 22, 1998, 112 Stat. 697, provided that: "(1) In general. - The amendments made by this section [amending this section and sections 4946 and 6103 of this title] shall take effect on the date of the enactment of this Act [July 22, 1998]. "(2) Initial nominations to internal revenue service oversight board. - The President shall submit the initial nominations under section 7802 of the Internal Revenue Code of 1986, as added by this section, to the Senate not later than 6 months after the date of the enactment of this Act [July 22, 1998]. "(3) Effect on actions prior to appointment of oversight board. - Nothing in this section shall be construed to invalidate the actions and authority of the Internal Revenue Service prior to the appointment of the members of the Internal Revenue Service Oversight Board." EFFECTIVE DATE OF 1996 AMENDMENT Section 101(c) of Pub. L. 104-168 provided that: "The amendments made by this section [amending this section and section 7811 of this title] shall take effect on the date of the enactment of this Act [July 30, 1996]." EFFECTIVE DATE OF 1988 AMENDMENT Section 6235(c) of Pub. L. 100-647 provided that: "The amendment made by subsection (a) [amending this section] shall take effect on the date 180 days after the date of the enactment of this Act [Nov. 10, 1988]." EFFECTIVE DATE OF 1974 AMENDMENT Section 1051(d) of Pub. L. 93-406 provided that: "The amendments made by this section [amending this section and sections 5108 and 5109 of Title 5, Government Organization and Employees] shall take effect on the 90th day after the date of the enactment of this Act [Sept. 2, 1974]." -End- -CITE- 26 USC Sec. 7803 01/02/2006 -EXPCITE- TITLE 26 - INTERNAL REVENUE CODE Subtitle F - Procedure and Administration CHAPTER 80 - GENERAL RULES Subchapter A - Application of Internal Revenue Laws -HEAD- Sec. 7803. Commissioner of Internal Revenue; other officials -STATUTE- (a) Commissioner of Internal Revenue (1) Appointment (A) In general There shall be in the Department of the Treasury a Commissioner of Internal Revenue who shall be appointed by the President, by and with the advice and consent of the Senate, to a 5-year term. Such appointment shall be made from individuals who, among other qualifications, have a demonstrated ability in management. (B) Vacancy Any individual appointed to fill a vacancy in the position of Commissioner occurring before the expiration of the term for which such individual's predecessor was appointed shall be appointed only for the remainder of that term. (C) Removal The Commissioner may be removed at the will of the President. (D) Reappointment The Commissioner may be appointed to more than one 5-year term. (2) Duties The Commissioner shall have such duties and powers as the Secretary may prescribe, including the power to - (A) administer, manage, conduct, direct, and supervise the execution and application of the internal revenue laws or related statutes and tax conventions to which the United States is a party; and (B) recommend to the President a candidate for appointment as Chief Counsel for the Internal Revenue Service when a vacancy occurs, and recommend to the President the removal of such Chief Counsel. If the Secretary determines not to delegate a power specified in subparagraph (A) or (B), such determination may not take effect until 30 days after the Secretary notifies the Committees on Ways and Means, Government Reform and Oversight, and Appropriations of the House of Representatives and the Committees on Finance, Governmental Affairs, and Appropriations of the Senate. (3) Consultation with Board The Commissioner shall consult with the Oversight Board on all matters set forth in paragraphs (2) and (3) (other than paragraph (3)(A)) of section 7802(d). (b) Chief Counsel for the Internal Revenue Service (1) Appointment There shall be in the Department of the Treasury a Chief Counsel for the Internal Revenue Service who shall be appointed by the President, by and with the consent of the Senate. (2) Duties The Chief Counsel shall be the chief law officer for the Internal Revenue Service and shall perform such duties as may be prescribed by the Secretary, including the duty - (A) to be legal advisor to the Commissioner and the Commissioner's officers and employees; (B) to furnish legal opinions for the preparation and review of rulings and memoranda of technical advice; (C) to prepare, review, and assist in the preparation of proposed legislation, treaties, regulations, and Executive orders relating to laws which affect the Internal Revenue Service; (D) to represent the Commissioner in cases before the Tax Court; and (E) to determine which civil actions should be litigated under the laws relating to the Internal Revenue Service and prepare recommendations for the Department of Justice regarding the commencement of such actions. If the Secretary determines not to delegate a power specified in subparagraph (A), (B), (C), (D), or (E), such determination may not take effect until 30 days after the Secretary notifies the Committees on Ways and Means, Government Reform and Oversight, and Appropriations of the House of Representatives and the Committees on Finance, Governmental Affairs, and Appropriations of the Senate. (3) Persons to whom Chief Counsel reports The Chief Counsel shall report directly to the Commissioner of Internal Revenue, except that - (A) the Chief Counsel shall report to both the Commissioner and the General Counsel for the Department of the Treasury with respect to - (i) legal advice or interpretation of the tax law not relating solely to tax policy; (ii) tax litigation; and (B) the Chief Counsel shall report to the General Counsel with respect to legal advice or interpretation of the tax law relating solely to tax policy. If there is any disagreement between the Commissioner and the General Counsel with respect to any matter jointly referred to them under subparagraph (A), such matter shall be submitted to the Secretary or Deputy Secretary for resolution. (4) Chief Counsel personnel All personnel in the Office of Chief Counsel shall report to the Chief Counsel. (c) Office of the Taxpayer Advocate (1) Establishment (A) In general There is established in the Internal Revenue Service an office to be known as the "Office of the Taxpayer Advocate". (B) National Taxpayer Advocate (i) In general The Office of the Taxpayer Advocate shall be under the supervision and direction of an official to be known as the "National Taxpayer Advocate". The National Taxpayer Advocate shall report directly to the Commissioner of Internal Revenue and shall be entitled to compensation at the same rate as the highest rate of basic pay established for the Senior Executive Service under section 5382 of title 5, United States Code, or, if the Secretary of the Treasury so determines, at a rate fixed under section 9503 of such title. (ii) Appointment The National Taxpayer Advocate shall be appointed by the Secretary of the Treasury after consultation with the Commissioner of Internal Revenue and the Oversight Board and without regard to the provisions of title 5, United States Code, relating to appointments in the competitive service or the Senior Executive Service. (iii) Qualifications An individual appointed under clause (ii) shall have - (I) a background in customer service as well as tax law; and (II) experience in representing individual taxpayers. (iv) Restriction on employment An individual may be appointed as the National Taxpayer Advocate only if such individual was not an officer or employee of the Internal Revenue Service during the 2-year period ending with such appointment and such individual agrees not to accept any employment with the Internal Revenue Service for at least 5 years after ceasing to be the National Taxpayer Advocate. Service as an officer or employee of the Office of the Taxpayer Advocate shall not be taken into account in applying this clause. (2) Functions of office (A) In general It shall be the function of the Office of the Taxpayer Advocate to - (i) assist taxpayers in resolving problems with the Internal Revenue Service; (ii) identify areas in which taxpayers have problems in dealings with the Internal Revenue Service; (iii) to the extent possible, propose changes in the administrative practices of the Internal Revenue Service to mitigate problems identified under clause (ii); and (iv) identify potential legislative changes which may be appropriate to mitigate such problems. (B) Annual reports (i) Objectives Not later than June 30 of each calendar year, the National Taxpayer Advocate shall report to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate on the objectives of the Office of the Taxpayer Advocate for the fiscal year beginning in such calendar year. Any such report shall contain full and substantive analysis, in addition to statistical information. (ii) Activities Not later than December 31 of each calendar year, the National Taxpayer Advocate shall report to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate on the activities of the Office of the Taxpayer Advocate during the fiscal year ending during such calendar year. Any such report shall contain full and substantive analysis, in addition to statistical information, and shall - (I) identify the initiatives the Office of the Taxpayer Advocate has taken on improving taxpayer services and Internal Revenue Service responsiveness; (II) contain recommendations received from individuals with the authority to issue Taxpayer Assistance Orders under section 7811; (III) contain a summary of at least 20 of the most serious problems encountered by taxpayers, including a description of the nature of such problems; (IV) contain an inventory of the items described in subclauses (I), (II), and (III) for which action has been taken and the result of such action; (V) contain an inventory of the items described in subclauses (I), (II), and (III) for which action remains to be completed and the period during which each item has remained on such inventory; (VI) contain an inventory of the items described in subclauses (I), (II), and (III) for which no action has been taken, the period during which each item has remained on such inventory, the reasons for the inaction, and identify any Internal Revenue Service official who is responsible for such inaction; (VII) identify any Taxpayer Assistance Order which was not honored by the Internal Revenue Service in a timely manner, as specified under section 7811(b); (VIII) contain recommendations for such administrative and legislative action as may be appropriate to resolve problems encountered by taxpayers; (IX) identify areas of the tax law that impose significant compliance burdens on taxpayers or the Internal Revenue Service, including specific recommendations for remedying these problems; (X) identify the 10 most litigated issues for each category of taxpayers, including recommendations for mitigating such disputes; and (XI) include such other information as the National Taxpayer Advocate may deem advisable. (iii) Report to be submitted directly Each report required under this subparagraph shall be provided directly to the committees described in clause (i) without any prior review or comment from the Commissioner, the Secretary of the Treasury, the Oversight Board, any other officer or employee of the Department of the Treasury, or the Office of Management and Budget. (iv) Coordination with report of Treasury Inspector General for Tax Administration To the extent that information required to be reported under clause (ii) is also required to be reported under paragraph (1) or (2) of subsection (d) by the Treasury Inspector General for Tax Administration, the National Taxpayer Advocate shall not contain such information in the report submitted under such clause. (C) Other responsibilities The National Taxpayer Advocate shall - (i) monitor the coverage and geographic allocation of local offices of taxpayer advocates; (ii) develop guidance to be distributed to all Internal Revenue Service officers and employees outlining the criteria for referral of taxpayer inquiries to local offices of taxpayer advocates; (iii) ensure that the local telephone number for each local office of the taxpayer advocate is published and available to taxpayers served by the office; and (iv) in conjunction with the Commissioner, develop career paths for local taxpayer advocates choosing to make a career in the Office of the Taxpayer Advocate. (D) Personnel actions (i) In general The National Taxpayer Advocate shall have the responsibility and authority to - (I) appoint local taxpayer advocates and make available at least 1 such advocate for each State; and (II) evaluate and take personnel actions (including dismissal) with respect to any employee of any local office of a taxpayer advocate described in subclause (I). (ii) Consultation The National Taxpayer Advocate may consult with the appropriate supervisory personnel of the Internal Revenue Service in carrying out the National Taxpayer Advocate's responsibilities under this subparagraph. (3) Responsibilities of Commissioner The Commissioner shall establish procedures requiring a formal response to all recommendations submitted to the Commissioner by the National Taxpayer Advocate within 3 months after submission to the Commissioner. (4) Operation of local offices (A) In general Each local taxpayer advocate - (i) shall report to the National Taxpayer Advocate or delegate thereof; (ii) may consult with the appropriate supervisory personnel of the Internal Revenue Service regarding the daily operation of the local office of the taxpayer advocate; (iii) shall, at the initial meeting with any taxpayer seeking the assistance of a local office of the taxpayer advocate, notify such taxpayer that the taxpayer advocate offices operate independently of any other Internal Revenue Service office and report directly to Congress through the National Taxpayer Advocate; and (iv) may, at the taxpayer advocate's discretion, not disclose to the Internal Revenue Service contact with, or information provided by, such taxpayer. (B) Maintenance of independent communications Each local office of the taxpayer advocate shall maintain a separate phone, facsimile, and other electronic communication access, and a separate post office address. (d) Additional duties of the Treasury Inspector General for Tax Administration (1) Annual reporting The Treasury Inspector General for Tax Administration shall include in one of the semiannual reports under section 5 of the Inspector General Act of 1978 - (A) an evaluation of the compliance of the Internal Revenue Service with - (i) restrictions under section 1204 of the Internal Revenue Service Restructuring and Reform Act of 1998 on the use of enforcement statistics to evaluate Internal Revenue Service employees; (ii) restrictions under section 7521 on directly contacting taxpayers who have indicated that they prefer their representatives be contacted; (iii) required procedures under section 6320 upon the filing of a notice of a lien; (iv) required procedures under subchapter D of chapter 64 for seizure of property for collection of taxes, including required procedures under section 6330 regarding levies; and (v) restrictions under section 3707 of the Internal Revenue Service Restructuring and Reform Act of 1998 on designation of taxpayers; (B) a review and a certification of whether or not the Secretary is complying with the requirements of section 6103(e)(8) to disclose information to an individual filing a joint return on collection activity involving the other individual filing the return; (C) information regarding extensions of the statute of limitations for assessment and collection of tax under section 6501 and the provision of notice to taxpayers regarding requests for such extension; (D) an evaluation of the adequacy and security of the technology of the Internal Revenue Service; (E) any termination or mitigation under section 1203 of the Internal Revenue Service Restructuring and Reform Act of 1998; (F) information regarding improper denial of requests for information from the Internal Revenue Service identified under paragraph (3)(A); and (G) information regarding any administrative or civil actions with respect to violations of the fair debt collection provisions of section 6304, including - (i) a summary of such actions initiated since the date of the last report; and (ii) a summary of any judgments or awards granted as a result of such actions. (2) Semiannual reports (A) In general. - The Treasury Inspector General for Tax Administration shall include in each semiannual report under section 5 of the Inspector General Act of 1978 - (i) the number of taxpayer complaints during the reporting period; (ii) the number of employee misconduct and taxpayer abuse allegations received by the Internal Revenue Service or the Inspector General during the period from taxpayers, Internal Revenue Service employees, and other sources; (iii) a summary of the status of such complaints and allegations; and (iv) a summary of the disposition of such complaints and allegations, including the outcome of any Department of Justice action and any monies paid as a settlement of such complaints and allegations. (B) Clauses (iii) and (iv) of subparagraph (A) shall only apply to complaints and allegations of serious employee misconduct. (3) Other responsibilities The Treasury Inspector General for Tax Administration shall - (A) conduct periodic audits of a statistically valid sample of the total number of determinations made by the Internal Revenue Service to deny written requests to disclose information to taxpayers on the basis of section 6103 of this title or section 552(b)(7) of title 5, United States Code; and (B) establish and maintain a toll-free telephone number for taxpayers to use to confidentially register complaints of misconduct by Internal Revenue Service employees and incorporate the telephone number in the statement required by section 6227 of the Omnibus Taxpayer Bill of Rights (Internal Revenue Service Publication No. 1). -SOURCE- (Aug. 16, 1954, ch. 736, 68A Stat. 915; Pub. L. 92-310, title II, Sec. 230(e), June 6, 1972, 86 Stat. 209; Pub. L. 94-455, title XIX, Sec. 1906(a)(58), (b)(13)(A), Oct. 4, 1976, 90 Stat. 1833, 1834; Pub. L. 105-206, title I, Sec. 1102(a), July 22, 1998, 112 Stat. 697.) -REFTEXT- REFERENCES IN TEXT The provisions of title 5 relating to appointments in the competitive service and the Senior Executive Service, referred to in subsec. (c)(1)(B)(ii), are classified generally to section 3301 et seq. of Title 5, Government Organization and Employees. Section 5 of the Inspector General Act of 1978, referred to in subsec. (d)(1), (2)(A), is section 5 of Pub. L. 95-452, which is set out in the Appendix to Title 5, Government Organization and Employees. Sections 1203, 1204, and 3707 of the Internal Revenue Service Restructuring and Reform Act of 1998, referred to in subsec. (d)(1)(A)(i), (v), (E), are sections 1203, 1204, and 3707 of Pub. L. 105-206, which are set out as notes under sections 7804, 7804, and 6651, respectively, of this title. Section 6227 of the Omnibus Taxpayer Bill of Rights, referred to in subsec. (d)(3)(B), is section 6227 of Pub. L. 100-647, which is set out as a note under section 7801 of this title. -MISC1- AMENDMENTS 1998 - Pub. L. 105-206 amended section catchline and text generally, substituting present provisions for provisions which: in subsec. (a), authorized appointment of persons for administration and enforcement of internal revenue laws; in subsec. (b), directed Secretary to determine and designate posts of duty of employees in field service, and authorized Secretary to order such employees to duty within and outside District of Columbia; and in subsec. (c), directed Secretary to issue notice and demand for failure to account for and pay over money or property collected in connection with internal revenue laws, and deemed amount so demanded to be imposed and assessed upon the officer or employee upon the date of such notice and demand. See section 7804 of this title. 1976 - Subsecs. (a), (b), (c). Pub. L. 94-455, Sec. 1906(b) (13)(A), struck out "or his delegate" after "Secretary" wherever appearing. Subsecs. (c), (d). Pub. L. 94-455, Sec. 1906(a)(58), redesignated subsec. (d) as (c). 1972 - Subsec. (c). Pub. L. 92-310 repealed subsec. (c) which related to bonds of officers and employees. -CHANGE- CHANGE OF NAME Committee on Government Reform and Oversight of House of Representatives changed to Committee on Government Reform of House of Representatives by House Resolution No. 5, One Hundred Sixth Congress, Jan. 6, 1999. Committee on Governmental Affairs of Senate changed to Committee on Homeland Security and Governmental Affairs of Senate, effective Jan. 4, 2005, by Senate Resolution No. 445, One Hundred Eighth Congress, Oct. 9, 2004. -MISC2- EFFECTIVE DATE OF 1998 AMENDMENT Pub. L. 105-206, title I, Sec. 1102(f), July 22, 1998, 112 Stat. 705, provided that: "(1) In general. - Except as provided in paragraph (2), the amendments made by this section [amending this section, sections 6212, 6323, 6343, 7611, and 7811 of this title, and section 5109 of Title 5, Government Organization and Employees] shall take effect on the date of the enactment of this Act [July 22, 1998]. "(2) Chief counsel. - Section 7803(b)(3) of the Internal Revenue Code of 1986, as added by this section, shall take effect on the date that is 90 days after the date of the enactment of this Act. "(3) National taxpayer advocate. - Notwithstanding section 7803(c)(1)(B)(iv) of such Code, as added by this section, in appointing the first National Taxpayer Advocate after the date of the enactment of this Act, the Secretary of the Treasury - "(A) shall not appoint any individual who was an officer or employee of the Internal Revenue Service at any time during the 2- year period ending on the date of appointment; and "(B) need not consult with the Internal Revenue Service Oversight Board if the Oversight Board has not been appointed. "(4) Current officers. - "(A) In the case of an individual serving as Commissioner of Internal Revenue on the date of the enactment of this Act who was appointed to such position before such date, the 5-year term required by section 7803(a)(1) of such Code, as added by this section, shall begin as of the date of such appointment. "(B) Clauses (ii), (iii), and (iv) of section 7803(c)(1)(B) of such Code, as added by this section, shall not apply to the individual serving as Taxpayer Advocate on the date of the enactment of this Act." -End- -CITE- 26 USC Sec. 7804 01/02/2006 -EXPCITE- TITLE 26 - INTERNAL REVENUE CODE Subtitle F - Procedure and Administration CHAPTER 80 - GENERAL RULES Subchapter A - Application of Internal Revenue Laws -HEAD- Sec. 7804. Other personnel -STATUTE- (a) Appointment and supervision Unless otherwise prescribed by the Secretary, the Commissioner of Internal Revenue is authorized to employ such number of persons as the Commissioner deems proper for the administration and enforcement of the internal revenue laws, and the Commissioner shall issue all necessary directions, instructions, orders, and rules applicable to such persons. (b) Posts of duty of employees in field service or traveling Unless otherwise prescribed by the Secretary - (1) Designation of post of duty The Commissioner shall determine and designate the posts of duty of all such persons engaged in field work or traveling on official business outside of the District of Columbia. (2) Detail of personnel from field service The Commissioner may order any such person engaged in field work to duty in the District of Columbia, for such periods as the Commissioner may prescribe, and to any designated post of duty outside the District of Columbia upon the completion of such duty. (c) Delinquent Internal Revenue officers and employees If any officer or employee of the Treasury Department acting in connection with the internal revenue laws fails to account for and pay over any amount of money or property collected or received by him in connection with the internal revenue laws, the Secretary shall issue notice and demand to such officer or employee for payment of the amount which he failed to account for and pay over, and, upon failure to pay the amount demanded within the time specified in such notice, the amount so demanded shall be deemed imposed upon such officer or employee and assessed upon the date of such notice and demand, and the provisions of chapter 64 and all other provisions of law relating to the collection of assessed taxes shall be applicable in respect of such amount. -SOURCE- (Aug. 16, 1954, ch. 736, 68A Stat. 916; Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 105-206, title I, Sec. 1104(a), July 22, 1998, 112 Stat. 710.) -MISC1- AMENDMENTS 1998 - Pub. L. 105-206 amended section catchline and text generally, substituting present provisions for provisions which had declared: in subsec. (a), that provisions of Reorganization Plans No. 26 of 1950 and No. 1 of 1952 should apply to all functions vested by this title, or by any act amending this title in any officer, employee, or agency of the Department; and in subsec. (b), that nothing in such Reorganization Plans should be considered to impair existing rights and remedies, that for the purpose of any action to recover tax all statutes, rules, and regulations referring to collector of internal revenue, principal officer for internal revenue district, or Secretary, should be deemed to refer to officer whose acts gave rise to such action, and that venue of any such action should be the same as under existing law. 1976 - Pub. L. 94-455 struck out "or his delegate" after "Secretary". EFFECTIVE DATE OF 1998 AMENDMENT Pub. L. 105-206, title I, Sec. 1104(c), July 22, 1998, 112 Stat. 710, provided that: "The amendments made by this section [amending this section and section 6344 of this title] shall take effect on the date of the enactment of this Act [July 22, 1998]." TERMINATION OF EMPLOYMENT FOR MISCONDUCT Pub. L. 105-206, title I, Sec. 1203, July 22, 1998, 112 Stat. 720, as amended by Pub. L. 108-357, title VIII, Sec. 881(d), Oct. 22, 2004, 118 Stat. 1627, provided that: "(a) In General. - Subject to subsection (c), the Commissioner of Internal Revenue shall terminate the employment of any employee of the Internal Revenue Service if there is a final administrative or judicial determination that such employee committed any act or omission described under subsection (b) in the performance of the employee's official duties. Such termination shall be a removal for cause on charges of misconduct. "(b) Acts or Omissions. - The acts or omissions referred to under subsection (a) are - "(1) willful failure to obtain the required approval signatures on documents authorizing the seizure of a taxpayer's home, personal belongings, or business assets; "(2) providing a false statement under oath with respect to a material matter involving a taxpayer or taxpayer representative; "(3) with respect to a taxpayer, taxpayer representative, or other employee of the Internal Revenue Service, the violation of - "(A) any right under the Constitution of the United States; or "(B) any civil right established under - "(i) title VI or VII of the Civil Rights Act of 1964 [42 U.S.C. 2000d et seq., 2000e et seq.]; "(ii) title IX of the Education Amendments of 1972 [20 U.S.C. 1681 et seq.]; "(iii) the Age Discrimination in Employment Act of 1967 [29 U.S.C. 621 et seq.]; "(iv) the Age Discrimination Act of 1975 [42 U.S.C. 6101 et seq.]; "(v) section 501 or 504 of the Rehabilitation Act of 1973 [29 U.S.C. 791, 794]; or "(vi) title I of the Americans with Disabilities Act of 1990 [42 U.S.C. 12111 et seq.]; "(4) falsifying or destroying documents to conceal mistakes made by any employee with respect to a matter involving a taxpayer or taxpayer representative; "(5) assault or battery on a taxpayer, taxpayer representative, or other employee of the Internal Revenue Service, but only if there is a criminal conviction, or a final judgment by a court in a civil case, with respect to the assault or battery; "(6) violations of the Internal Revenue Code of 1986, Department of Treasury regulations, or policies of the Internal Revenue Service (including the Internal Revenue Manual) for the purpose of retaliating against, or harassing, a taxpayer, taxpayer representative, or other employee of the Internal Revenue Service; "(7) willful misuse of the provisions of section 6103 of the Internal Revenue Code of 1986 for the purpose of concealing information from a congressional inquiry; "(8) willful failure to file any return of tax required under the Internal Revenue Code of 1986 on or before the date prescribed therefor (including any extensions), unless such failure is due to reasonable cause and not to willful neglect; "(9) willful understatement of Federal tax liability, unless such understatement is due to reasonable cause and not to willful neglect; and "(10) threatening to audit a taxpayer for the purpose of extracting personal gain or benefit. "(c) Determination of Commissioner. - "(1) In general. - The Commissioner of Internal Revenue may take a personnel action other than termination for an act or omission under subsection (a). "(2) Discretion. - The exercise of authority under paragraph (1) shall be at the sole discretion of the Commissioner of Internal Revenue and may not be delegated to any other officer. The Commissioner of Internal Revenue, in his sole discretion, may establish a procedure which will be used to determine whether an individual should be referred to the Commissioner of Internal Revenue for a determination by the Commissioner under paragraph (1). "(3) No appeal. - Any determination of the Commissioner of Internal Revenue under this subsection may not be appealed in any administrative or judicial proceeding. "(d) Definition. - For purposes of the provisions described in clauses (i), (ii), and (iv) of subsection (b)(3)(B), references to a program or activity receiving Federal financial assistance or an education program or activity receiving Federal financial assistance shall include any program or activity conducted by the Internal Revenue Service for a taxpayer. "(e) Individuals Performing Services Under a Qualified Tax Collection Contract. - An individual shall cease to be permitted to perform any services under any qualified tax collection contract (as defined in section 6306(b) of the Internal Revenue Code of 1986) if there is a final determination by the Secretary of the Treasury under such contract that such individual committed any act or omission described under subsection (b) in connection with the performance of such services." EMPLOYEE TRAINING PROGRAM Pub. L. 105-206, title I, Sec. 1205, July 22, 1998, 112 Stat. 722, provided that: "(a) In General. - Not later than 180 days after the date of the enactment of this Act [July 22, 1998], the Commissioner of Internal Revenue shall implement an employee training program and shall submit an employee training plan to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives. "(b) Contents. - The plan submitted under subsection (a) shall - "(1) detail a comprehensive employee training program to ensure adequate customer service training; "(2) detail a schedule for training and the fiscal years during which the training will occur; "(3) detail the funding of the program and relevant information to demonstrate the priority and commitment of resources to the plan; "(4) review the organizational design of customer service; "(5) provide for the implementation of a performance development system; and "(6) provide for at least 16 hours of conflict management training during fiscal year 1999 for employees conducting collection activities." CATALOGING COMPLAINTS Pub. L. 105-206, title III, Sec. 3701, July 22, 1998, 112 Stat. 776, provided that: "In collecting data for the report required under section 1211 of the Taxpayer Bill of Rights 2 (Public Law 104- 168) [set out below], the Secretary of the Treasury or the Secretary's delegate shall, not later than January 1, 2000, maintain records of taxpayer complaints of misconduct by Internal Revenue Service employees on an individual employee basis." USE OF PSEUDONYMS BY INTERNAL REVENUE SERVICE EMPLOYEES Pub. L. 105-206, title III, Sec. 3706, July 22, 1998, 112 Stat. 778, provided that: "(a) In General. - Any employee of the Internal Revenue Service may use a pseudonym only if - "(1) adequate justification for the use of a pseudonym is provided by the employee, including protection of personal safety; and "(2) such use is approved by the employee's supervisor before the pseudonym is used. "(b) Effective Date. - Subsection (a) shall apply to requests made after the date of the enactment of this Act [July 22, 1998]." REPORTS ON MISCONDUCT OF IRS EMPLOYEES Pub. L. 104-168, title XII, Sec. 1211, July 30, 1996, 110 Stat. 1474, provided that: "On or before June 1 of each calendar year after 1996, the Secretary of the Treasury shall submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate a report on - "(1) all categories of instances involving the misconduct of employees of the Internal Revenue Service during the preceding calendar year, and "(2) the disposition during the preceding calendar year of any such instances (without regard to the year of the misconduct)." TAXPAYERS' RIGHTS, COURTESY AND CROSS-CULTURAL RELATIONS TRAINING Pub. L. 109-115, div. A, title II, Sec. 202, Nov. 30, 2005, 119 Stat. 2438, provided that: "The Internal Revenue Service shall maintain a training program to ensure that Internal Revenue Service employees are trained in taxpayers' rights, in dealing courteously with taxpayers, and in cross-cultural relations." Similar provisions were contained in the following prior appropriation acts: Pub. L. 108-447, div. H, title II, Sec. 202, Dec. 8, 2004, 118 Stat. 3240. Pub. L. 108-199, div. F, title II, Sec. 202, Jan. 23, 2004, 118 Stat. 318. Pub. L. 108-7, div. J, title I, Sec. 102, Feb. 20, 2003, 117 Stat. 437. Pub. L. 107-67, title I, Sec. 102, Nov. 12, 2001, 115 Stat. 523. Pub. L. 106-554, Sec. 1(a)(3) [title I, Sec. 102], Dec. 21, 2000, 114 Stat. 2763, 2763A-132. Pub. L. 106-58, title I, Sec. 102, Sept. 29, 1999, 113 Stat. 437. Pub. L. 105-277, div. A, Sec. 101(h) [title I, Sec. 102], Oct. 21, 1998, 112 Stat. 2681-480, 2681-488. Pub. L. 105-61, title I, Sec. 102, Oct. 10, 1997, 111 Stat. 1281. Pub. L. 104-208, div. A, title I, Sec. 101(f) [title I, Sec. 102], Sept. 30, 1996, 110 Stat. 3009-314, 3009-323. Pub. L. 104-52, title I, Sec. 2, Nov. 19, 1995, 109 Stat. 474. Pub. L. 103-329, title I, Sec. 2, Sept. 30, 1994, 108 Stat. 2388. Pub. L. 103-123, title I, Sec. 2, Oct. 28, 1993, 107 Stat. 1232. Pub. L. 102-393, title I, Sec. 2, Oct. 6, 1992, 106 Stat. 1735. BASIS FOR EVALUATION OF INTERNAL REVENUE SERVICE EMPLOYEES Pub. L. 105-206, title I, Sec. 1204, July 22, 1998, 112 Stat. 722, provided that: "(a) In General. - The Internal Revenue Service shall not use records of tax enforcement results - "(1) to evaluate employees; or "(2) to impose or suggest production quotas or goals with respect to such employees. "(b) Taxpayer Service. - The Internal Revenue Service shall use the fair and equitable treatment of taxpayers by employees as one of the standards for evaluating employee performance. "(c) Certification. - Each appropriate supervisor shall certify quarterly by letter to the Commissioner of Internal Revenue whether or not tax enforcement results are being used in a manner prohibited by subsection (a). "(d) Technical and Conforming Amendment. - [Repealed section 6231 of Pub. L. 100-647, set out below.] "(e) Effective Date. - This section shall apply to evaluations conducted on or after the date of the enactment of this Act [July 22, 1998]." Pub. L. 100-647, title VI, Sec. 6231, Nov. 10, 1988, 102 Stat. 3734, prohibited Internal Revenue Service use of records of tax enforcement results to evaluate employees or to impose or suggest production quotas or goals, and required quarterly certification that results had not been used in prohibited manner, prior to repeal by Pub. L. 105-206, title I, Sec. 1204(d), July 22, 1998, 112 Stat. 722. SENSE OF CONGRESS AS TO INCREASED INTERNAL REVENUE SERVICE FUNDING FOR TAXPAYER ASSISTANCE AND ENFORCEMENT Pub. L. 100-203, title X, Sec. 10622, Dec. 22, 1987, 101 Stat. 1330-452, provided that: "(a) Findings. - The Congress hereby finds that - "(1) the Internal Revenue Service estimates that the amount of taxes owed for 1986 will exceed the amount of taxes collected for such year by $100 billion; "(2) the current taxpayer compliance rate stands at 81.5 percent; "(3) the tax gap can be significantly reduced by enhancing taxpayer assistance services and enforcement; and "(4) the Appropriations Committee of the House of Representatives, in its fiscal year 1988 Internal Revenue Service appropriation, took a step in the direction of providing additional funding for taxpayer assistance and enforcement efforts. "(b) It is the sense of the Congress that: "(1) The Congress increase outlays for the Internal Revenue Service in fiscal year 1989 and fiscal year 1990 in the areas of taxpayer assistance and enforcement by $.7 billion in fiscal year 1989 for a revenue total of $3.2 billion and by $.8 billion in fiscal year 1990 for a revenue total of $4.4 billion. The net revenue increase would be $2.5 billion in fiscal year 1989 and $3.6 billion in fiscal year 1990, or a net revenue increase over the House Appropriations Committee recommendations of $.4 billion in fiscal year 1989 and $1.3 billion in fiscal year 1990. "(2) The Internal Revenue Service offer improved taxpayer assistance and enforcement efforts by using the aforementioned outlays in areas recommended by, or consistent with the recommendations of, the 'Dorgan Task Force Report'. Taxpayer assistance efforts would include providing expanded taxpayer education programs, instituting pilot programs of taxmobiles in rural areas, and upgrading the quality of telephone assistance. Taxpayer enforcement efforts would include raising the audit rate from 1.1 percent toward 2.5 percent, restoring resources to criminal investigations, and the collection of delinquent accounts. "(3) The Congress should undertake an experimental multiyear authorization and 2-year appropriation for the Internal Revenue Service consistent with the recommendations in Public Law 100- 119, section 201 (Increasing the Statutory Limit on the Public Debt) [2 U.S.C. 621 note]. "(4) Increased funding should be provided for compilation and analysis of statistics of income and research. The Internal Revenue Service must issue a report on the extent of the tax gap and the measures that could be undertaken to decrease the tax gap. The report must utilize more current data than has been utilized recently. The report must be issued by April 15, 1989. The Internal Revenue Service must also report annually on the improvements being made in the audit rate, taxpayer assistance, and enforcement efforts." TAX COUNSELING FOR THE ELDERLY Pub. L. 95-600, title I, Sec. 163, Nov. 6, 1978, 92 Stat. 2810, as amended by Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: "(a) Training and Technical Assistance. - "(1) Agreements. - The Secretary, through the Internal Revenue Service, is authorized to enter into agreements with private or public nonprofit agencies or organizations for the purpose of providing training and technical assistance to prepare volunteers to provide tax counseling assistance for elderly individuals in the preparation of their Federal income tax returns. "(2) Other assistance. - In addition to any other forms of technical assistance provided under this section, the Secretary may provide - "(A) preferential access to Internal Revenue Service taxpayer service representatives for the purpose of making available technical information needed during the course of the volunteers' work; "(B) material to be used in making elderly persons aware of the availability of assistance under volunteer taxpayer assistance programs under this section; and "(C) technical materials and publications to be used by such volunteers. "(b) Powers of the Secretary. - In carrying out his responsibilities under this section, the Secretary is authorized - "(1) to provide assistance to organizations which demonstrate, to the satisfaction of the Secretary, that their volunteers are adequately trained and competent to render effective tax counseling to the elderly; "(2) to provide for the training of such volunteers, and to assist in such training, to insure that such volunteers are qualified to provide tax counseling assistance to elderly individuals; "(3) to provide reimbursement to volunteers through such organizations for transportation, meals, and other expenses incurred by them in training or providing tax counseling assistance under this section, and such other support and assistance as he determines to be appropriate in carrying out the provisions of this section; "(4) to provide for the use of services, personnel, and facilities of Federal executive agencies and of State and local public agencies with their consent, with or without reimbursement therefor; and "(5) to prescribe such rules and regulations as he deems necessary to carry out the provisions of this section. "(c) Employment of Volunteers. - "(1) In general. - Service as a volunteer in any program carried out under this section shall not be considered service as an employee of the United States. Volunteers under such a program shall not be considered Federal employees and shall not be subject to the provisions of law relating to Federal employment, except that the provisions of section 1905 of title 18, United States Code, shall apply to volunteers as if they were employees of the United States. "(2) Expenses. - Amounts received by volunteers serving in any program carried out under this section as reimbursement for expenses are exempt from taxation under chapters 1 and 21 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954]. "(d) Publicity Relating to Income Tax Provisions Particularly Important to the Elderly. - The Secretary shall, from time to time, undertake to direct the attention of elderly individuals to those provisions of the Internal Revenue Code of 1986 which are particularly important to taxpayers who are elderly individuals, such as the provisions of section 37 (relating to credit for the elderly) and section 121 (relating to one-time exclusion of gain from sale of principal residence) of the Internal Revenue Code of 1986. "(e) Definitions. - For purposes of this section - "(1) The term 'Secretary' means the Secretary of the Treasury or his delegate. "(2) The term 'elderly individual' means an individual who has attained the age of 60 years as of the close of his taxable year. "(3) The term 'Federal income tax return' means any return required under chapter 61 of the Internal Revenue Code of 1986 with respect to the tax imposed on an individual under chapter 1 of such Code. "(f) Authorization of Appropriations. - There are authorized to be appropriated for the purpose of carrying out the provisions of this section $2,500,000 for the fiscal year ending September 30, 1979, and $3,500,000 for the fiscal year ending September 30, 1980." -End- -CITE- 26 USC Sec. 7805 01/02/2006 -EXPCITE- TITLE 26 - INTERNAL REVENUE CODE Subtitle F - Procedure and Administration CHAPTER 80 - GENERAL RULES Subchapter A - Application of Internal Revenue Laws -HEAD- Sec. 7805. Rules and regulations -STATUTE- (a) Authorization Except where such authority is expressly given by this title to any person other than an officer or employee of the Treasury Department, the Secretary shall prescribe all needful rules and regulations for the enforcement of this title, including all rules and regulations as may be necessary by reason of any alteration of law in relation to internal revenue. (b) Retroactivity of regulations (1) In general Except as otherwise provided in this subsection, no temporary, proposed, or final regulation relating to the internal revenue laws shall apply to any taxable period ending before the earliest of the following dates: (A) The date on which such regulation is filed with the Federal Register. (B) In the case of any final regulation, the date on which any proposed or temporary regulation to which such final regulation relates was filed with the Federal Register. (C) The date on which any notice substantially describing the expected contents of any temporary, proposed, or final regulation is issued to the public. (2) Exception for promptly issued regulations Paragraph (1) shall not apply to regulations filed or issued within 18 months of the date