§ 7803. Commissioner of Internal Revenue; other officials
(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. Such appointment shall be made from individuals who, among other qualifications, have a demonstrated ability in management.
(B)
Term
The term of the Commissioner of Internal Revenue shall be a 5-year term, beginning with a term to commence on November 13, 1997. Each subsequent term shall begin on the day after the date on which the previous term expires.
(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.
(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—
(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;
(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—
(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.
(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.
(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—
(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;
(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—
(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;
(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—
(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
(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;
(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
(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;
(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—
(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—
(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;
(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); and