[Congressional Record Volume 142, Number 105 (Wednesday, July 17, 1996)]
[Senate]
[Pages S7927-S7928]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                       TAXPAYER BILL OF RIGHTS 2

  Mr. PRYOR. Mr. President, over the past several years there has been 
a very extensive debate over ways to achieve more fairness for 
taxpayers, especially small taxpayers, through reform of our tax 
system. Proposals are most often very complex and sometimes extremely 
partisan. But there is one simple, inexpensive, and I must say 
unanimously-agreed upon legislative package that helps make paying 
taxes fairer to the taxpayer. Mr. President, we call this proposal the 
taxpayer bill of rights 2, which passed the Senate by unanimous vote on 
Thursday evening.
  I am very proud we passed this particular piece of legislation by 
unanimous consent. The passage of this important piece of legislative 
work is the culmination of over one decade of dedication to its 
philosophy.
  Many of our colleagues in the Senate today were not here in 1988 when 
Congress passed, and President Reagan signed into law, the very first 
taxpayer bill of rights. That bill was the first ever comprehensive 
piece of legislation enumerating the rights of the American taxpayer. 
For example, in the taxpayer bill of rights 1 provided:
  First, the right of the taxpayer to be informed of their respective 
rights;
  Second, the right of the taxpayer to rely on written advice of the 
Internal Revenue Service;
  Third, the right of the taxpayer to representation; and
  Fourth, the right of the taxpayer to recover, for the first time, 
civil damages and attorney's fees from the Internal Revenue Service.
  These and other basic, commonsense provisions were codified by the 
first taxpayer bill of rights. The battle waged by a strongly 
bipartisan coalition for their codification was hard-fought, and their 
ultimate enactment was a first giant step for the American taxpayer.
  But, since 1988 Mr. President, we have learned much about the 
Internal Revenue Service and the needs of taxpayers. Now is clearly 
time to more fully develop and expand those particular rights. With 
Thursday's passage of the taxpayer bill of rights 2, we have taken a 
very significant step forward, treating taxpayers more like customers.
  This step follows the efforts taken in 1988 with the enactment of the 
first taxpayer bill of rights.
  In 1992 I first introduced the taxpayer bill of rights 2 with 
considerable bipartisan backing of some 52 of our colleagues on each 
side of the aisle. The bill passed Congress twice that year. It was 
ultimately vetoed because it was included as part of two large tax 
bills with which President Bush did not agree. Since these two bills 
were vetoed at that time, the Senate has not considered taxpayer bill 
of rights 2 on its own merits until this past Thursday. In making its 
way to the Senate, this very important piece of legislation passed the 
House of Representatives by a unanimous 425 to 0 vote. I applaud the 
action of the House of Representatives, and I am proud that this 
Thursday, because of a strong bipartisan coalition, the Senate has now 
followed suit by unanimously passing taxpayer bill of rights 2.
  I am also proud to say I have had the privilege and honor of working 
very closely with my colleagues in the Senate. Senator Chuck Grassley, 
of Iowa, has been a strong champion for years of increasing taxpayers' 
rights. He has been, certainly, a grand ally in this long fight. 
Senator Harry Reid, from Nevada, has also been a strong advocate for 
giving additional rights to the taxpayer. He has been a strong advocate 
and supporter of taxpayer bill of rights 2. In fact, the very first 
speech that Senator Reid made on the floor of the U.S. Senate, shortly 
after his election, related to the necessity and the need of having a 
taxpayer bill of rights.

  I look forward to President Clinton signing this very important bill 
in the days ahead. The taxpayer bill of rights 2 builds on a foundation 
laid by the original taxpayer bill of rights. It protects taxpayers by 
requiring the IRS to achieve higher standards of accuracy, timeliness, 
and fair play in providing taxpayer service. It makes the Internal 
Revenue Service accountable.
  The taxpayers bill of rights 2 achieves these new standards through 
27 new provisions--27 new protections for the American taxpayer, as a 
result of the passage of the taxpayer bill of rights 2.
  First, expansion of the authority of the taxpayer advocate to prevent 
hardships on taxpayers;
  Second, creation of small taxpayers' rights to an installment 
agreement, and further rights when installment agreements are denied or 
terminated are specifically spelled out to benefit the taxpayer;
  Third, the expansion of the reasons for which the IRS must abate 
interest when it has delayed a taxpayers' case, and for the very first 
time in our history, a grant of authority to the courts of the power to 
review the interest abatement determination;
  Fourth, an increase in the amount a taxpayer can recover in civil 
damages from $100,000 to $1 million, when the Internal Revenue Service 
or an agent thereof has acted negligently or recklessly in the 
taxpayer's case;
  Fifth, provisions strengthening the code so the taxpayer may recover 
out-of-pocket costs;
  Sixth, rules prohibiting the Internal Revenue Service from issuing 
retroactive proposed regulations unless the Congress provides 
otherwise.
  Mr. President, the taxpayer bill of rights 2 contains many more 
commonsense provisions, designed to safeguard the rights of taxpayers. 
Taken together, these provisions will work to restore more faith in our 
system of taxation. It will provide more protection for the taxpayer in 
dealing with the Internal Revenue Service.
  I truly believe that in the long run, this very important, bipartisan 
legislation will help bolster taxpayer confidence in dealing with the 
Government

[[Page S7928]]

by ensuring taxpayers that they are going to get fair treatment by the 
tax collector, the Internal Revenue Service.
  Mr. President, in closing, I would like to this morning pay a very, 
very special tribute to a fine gentleman who has worked for years to 
make certain that the taxpayers' bill of rights No. 2 became the law of 
this land. This fine gentleman is Steve Glaze. He is a member of my 
staff. He sits to my left at this moment on the floor, and I can say 
without reservation that without Steve Glaze's constant help and 
support, his inspiration many times when we thought the taxpayers' bill 
of rights 2 would never see the light of day and never become law, 
Steve Glaze was always that optimistic individual, knowledgeable, 
inspired and committed to making certain that the American taxpayer got 
a fairer break.
  So, Mr. President, I thank my very worthy staff member, Steve Glaze, 
for his magnificent contribution to this bipartisan piece of 
legislation.
  I thank the Chair, and I yield the floor.
  The PRESIDING OFFICER. Who seeks recognition?
  Mr. DOMENICI addressed the Chair.
  The PRESIDING OFFICER. The Senator from New Mexico is recognized.
  Mr. DOMENICI. Mr. President, I understand morning business will be 
completed at 11 o'clock. I will attempt to keep my time to that. If you 
will advise me when the time is up, I would appreciate it.
  The PRESIDING OFFICER. The Senator is correct. Morning business does 
expire at 11 o'clock. The Chair will advise the Senator.
  Mr. DOMENICI. I had contacted Senator Thurmond about the last 5 
minutes, and he is not coming, so that is why I am using his time.

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