Present Law
The Code provides that it is lawful for the Secretary to accept checks or money orders as payment for taxes, to the extent and under the conditions provided in regulations prescribed by the Secretary (sec. 6311). Those regulations state that checks or money orders should be made payable to the Internal Revenue Service.
The Committee believes that it more appropriate that checks be made payable to the United
States Treasury.
Explanation of Provision
The provision requires the Secretary or his delegate to establish such rules, regulations, and procedures as are necessary to allow payment of taxes by check or money order to be made payable to the United States Treasury.
Effective Date
The provision is effective on the date of enactment.
4. Clarification of authority of Secretary relating to the making of elections (sec. 3704 of the bill and sec. 7805 of the Code)
Present Law
Except as otherwise provided, elections provided by the Code are to be made in such manner as the Secretary shall by regulations or forms prescribe.
The Committee wishes to eliminate any confusion over the type of guidance in which the
Secretary may prescribe the manner of making any election.
Explanation of Provision
The provision clarifies that, except as otherwise provided, the Secretary may prescribe the manner of making of any election by any reasonable means.
Effective Date
The provision is effective as of the date of enactment.
5. IRS employee contacts (sec. 3705 of the bill)
Present Law
The IRS sends many different notices to taxpayers. Some (but not all) of these notices contain a name and telephone number of an IRS employee who the taxpayer may call if the taxpayer has any questions.
The Committee believes that it is important that taxpayers receive prompt answers to their
questions about their tax liability. Many taxpayers report frustration because they cannot determine
the appropriate IRS employee to contact for information.
Explanation of Provision
The provision requires that all IRS notices and correspondence contain a name and telephone number of an IRS employee whom the taxpayer may call. In addition, to the extent practicable and where it is advantageous to the taxpayer, the IRS should assign one employee to handle a matter with respect to a taxpayer until that matter is resolved.
Effective Date
The provision is effective 60 days after the date of enactment.
6. Use of pseudonyms by IRS employees (sec. 3706 of the bill)
Present Law
The Federal Service Impasses Panel has ruled that if an employee believes that use of the employee's last name only will identify the employee due to the unique nature of the employee's last name, and/or nature of the office locale, then the employee may "register" a pseudonym with the employee's supervisor.
The Committee is concerned that IRS employees may use pseudonyms in inappropriate
circumstances.
Explanation of Provision
The provision provides that an IRS employee may use a pseudonym only if (1) adequate justification, such as protecting personal safety, for using the pseudonym was provided by the employee as part of the employee's request and (2) management has approved the request to use the pseudonym prior to its use.
Effective Date
The provision is effective with respect to requests made after the date of enactment.
7. Conferences of right in the National Office of IRS (sec. 3707 of the bill)
Present Law
In any matter involving the submission of a substantive legal matter involving a specific taxpayer to the National Office of the IRS, the taxpayer is entitled to at least one conference (the "conference of right") at which it can explain its position.
The Committee is concerned that the presence of the IRS employee with whom the taxpayer
has previously dealt may hinder efficient resolution of the issue in the National Office.
Explanation of Provision
The provision gives a taxpayer the right to limit participation in its conference of right to IRS national office personnel.
Effective Date
The provision is effective with respect to requests made after the date of enactment.
8. Illegal tax protester designations (sec. 3708 of the bill)
Present Law
The IRS designates individuals who meet certain criteria as "illegal tax protesters" in the IRS Master File.
The Committee is concerned that taxpayers may be stigmatized by a designation as an
"illegal tax protester."
Explanation of Provision
The provision prohibits the use by the IRS of the "illegal tax protester" designation. Any extant designation in the individual master file (the main computer file) must be removed and any other extant designation (such as on paper records that have been archived) must be disregarded. The IRS is, however, permitted to designate appropriate taxpayers as nonfilers. The IRS must remove the nonfiler designation once the taxpayer has filed valid tax returns for two consecutive years and paid all taxes shown on those returns.
Effective Date
The provision is effective on the date of enactment.
9. Provision of confidential information to Congress by whistleblowers (sec. 3709 of the bill and sec. 6103(f) of the Code)
The Committee believes that it is appropriate to have the opportunity to receive tax return
information directly from whistleblowers.
10. Listing of local IRS telephone numbers and addresses (sec. 3710 of the bill)
Present Law
The IRS is not statutorily required to publish the local telephone number or address of its local offices, and generally does not do so.
Reasons for Change
The Committee believes that every taxpayer should have convenient access to the IRS.
Explanation of Provision
The provision requires the IRS, as soon as is practicable but no later than 180 days after the date of enactment, to publish addresses and local telephone numbers of local IRS offices in appropriate local telephone directories.
Effective Date
The provision is effective on the date of enactment.