Authority to Modify or Rescind Taxpayer Assistance Orders

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 301

[GL-001-96]

RIN 1545-AU01

Authority to Modify or Rescind Taxpayer Assistance Orders

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking.

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SUMMARY: This document contains proposed regulations regarding taxpayer

assistance orders. The proposed regulations provide that the authority

to modify or rescind taxpayer assistance orders is limited to the

Commissioner, the Deputy Commissioner, or the Ombudsman. The proposed

regulations affect all taxpayers with respect to whom a taxpayer

assistance order is issued.

DATES: Written comments and requests for a public hearing must be

received by July 18, 1996.

ADDRESSES: Send submissions to: CC:DOM:CORP:R (GL-001-96), room 5228,

Internal Revenue Service, POB 7604, Ben Franklin Station, Washington,

DC 20044. In the alternative, submissions may be hand delivered between

the hours of 8 a.m. and 5 p.m. to: CC:DOM:CORP:R (GL-001-96), Courier's

Desk, Internal Revenue Service, 1111 Constitution Avenue NW.,

Washington, DC.

FOR FURTHER INFORMATION CONTACT: Robert A. Miller, (202) 622-3640 (not

a toll-free number).

SUPPLEMENTARY INFORMATION:

Explanation of Provisions

This document contains a proposed amendment to the Procedure and

Administration Regulations (26 CFR part 301) under section 7811 of the

Internal Revenue Code. In Announcement 96-5 (1996-4 I.R.B. 99),

Administrative Initiatives to Enhance Taxpayer Rights, IRS indicated it

was increasing the power of the Ombudsman to assist taxpayers by

affording greater protection for taxpayer assistance orders. Effective

on the date of the Announcement 96-5, January 4, 1996, the power to

modify or rescind a taxpayer assistance order issued under section 7811

is limited to the Commissioner, Deputy Commissioner, or the Ombudsman

ives to Enhance Taxpayer Rights, IRS indicated it

was increasing the power of the Ombudsman to assist taxpayers by

affording greater protection for taxpayer assistance orders. Effective

on the date of the Announcement 96-5, January 4, 1996, the power to

modify or rescind a taxpayer assistance order issued under section 7811

is limited to the Commissioner, Deputy Commissioner, or the Ombudsman.

The current regulations provide that taxpayer assistance orders may

be modified or rescinded by the Commissioner, Deputy Commissioner, or

Ombudsman and, additionally, the following IRS officials: a district

director, a service center director, a compliance center director, a

regional director of appeals, or the superiors of those officials.

Announcement 96-5 indicates that proposed regulations would be

published in early 1996 to reflect the policy restriction in authority

to modify or rescind taxpayer assistance orders. Under the proposed

regulations, officials other than the Commissioner, Deputy

Commissioner, or the Ombudsman may modify or rescind a taxpayer

assistance order only with the specific written authorization of the

Commissioner, Deputy Commissioner, or Ombudsman.

Special Analyses

It has been determined that this notice of proposed rulemaking is

not a significant regulatory action as defined in EO 12866. Therefore,

a regulatory assessment is not required. It also has been determined

that section 553(b) of the Administrative Procedure Act (5 U.S.C.

chapter 5) and the Regulatory Flexibility Act (5 U.S.C. chapter 6) do

not apply to these regulations, and, therefore, a Regulatory

Flexibility Analysis is not required. Pursuant to section 7805(f) of

the Internal Revenue Code, this notice of proposed rulemaking will be

submitted to the Chief Counsel for Advocacy of the Small Business

Administration for comment on its impact on small business.

Comments and Requests for a Public Hearing

t (5 U.S.C. chapter 6) do

not apply to these regulations, and, therefore, a Regulatory

Flexibility Analysis is not required. Pursuant to section 7805(f) of

the Internal Revenue Code, this notice of proposed rulemaking will be

submitted to the Chief Counsel for Advocacy of the Small Business

Administration for comment on its impact on small business.

Comments and Requests for a Public Hearing

Before these proposed regulations are adopted as final regulations,

consideration will be given to any written comments that are submitted

timely (a signed original and eight copies) to the IRS. All comments

will be available for public inspection and copying. A public hearing

may be scheduled if requested in writing by a person that timely

submits written comments. If a public hearing is scheduled, notice of

the date, time, and place for the hearing will be published in the

Federal Register.

Drafting Information

The principal author of these regulations is Robert A. Miller,

Office of Assistant Chief Counsel (General

Litigation), CC:EL:GL. However, other personnel from the IRS and

Treasury Department participated in their development.

List of Subjects in 26 CFR Part 301

Employment taxes, Estate taxes, Excise taxes, Gift taxes, Income

taxes, Penalties, Reporting and recordkeeping requirements.

Proposed Amendments to the Regulations

Accordingly, 26 CFR part 301 is proposed to be amended as follows:

PART 301--PROCEDURE AND ADMINISTRATION

Paragraph 1. The authority citation for part 301 continues to read

in part as follows:

Authority: 26 U.S.C. 7805 * * *

Par. 2. Section 301.7811-1 is amended by revising paragraphs (d)

and (h) to read as follows:

Sec. 301.7811-1 Taxpayer Assistance Orders.

* * * * *

the Regulations

Accordingly, 26 CFR part 301 is proposed to be amended as follows:

PART 301--PROCEDURE AND ADMINISTRATION

Paragraph 1. The authority citation for part 301 continues to read

in part as follows:

Authority: 26 U.S.C. 7805 * * *

Par. 2. Section 301.7811-1 is amended by revising paragraphs (d)

and (h) to read as follows:

Sec. 301.7811-1 Taxpayer Assistance Orders.

* * * * *

(d) Authority to modify or rescind limited to Commissioner, Deputy

Commissioner, or Taxpayer Ombudsman. The Commissioner, the Deputy

Commissioner, and the Ombudsman may modify or rescind a taxpayer

assistance order. A district director, a service center director, a

compliance center director, a regional director of appeals, or the

superiors of those officials, may modify or rescind a taxpayer

assistance order only with the specific written authorization of the

Commissioner, Deputy Commissioner, or the Ombudsman.

* * * * *

(h) Effective dates. This section is effective on March 20, 1992,

except paragraph (d) of this section which is effective on the date 90

days after the date of publication of these regulations as final

regulations in the Federal Register.

Margaret Milner Richardson,

Commissioner of Internal Revenue.

[FR Doc. 96-8241 Filed 4-18-96; 8:45am]

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