[Congressional Record Volume 153, Number 194 (Tuesday, December 18, 2007)]
[Senate]
[Page S15940]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               AMENDING THE INTERNAL REVENUE CODE OF 1986

  Mr. PRYOR. Mr. President, I ask unanimous consent that the Senate 
proceed to the immediate consideration of Calendar No. 528, S. 2436.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The legislative clerk read as follows:

       A bill (S. 2436) to amend the Internal Revenue Code of 1986 
     to clarify the term of the Commissioner of Internal Revenue.

  There being no objection, the Senate proceeded to consider the bill.
  Mr. BAUCUS. Mr. President, I am pleased that today the Senate is 
acting on S. 2436, a bill to clarify the term of the IRS Commissioner.
  The Internal Revenue Restructuring and Reform Act of 1998 provides 
that the President appoints the IRS Commissioner to a 5-year term. On 
the face of it, the Commissioner's term of office might seem quite 
clear. But lawyers in the administration and the Senate have disagreed 
over when the 5-year term begins and ends.
  Specifically, there is dispute over whether the term of the IRS 
Commissioner follows the calendar or the person. Let me explain.
  If the term follows the calendar, the tenure of the Commissioner 
begins on the same date every 5 years. For example, if one term ends on 
November 12, then the next term begins the next day on November 13--
whether or not a new Commissioner has been confirmed.
  This arrangement provides certainty for the Commissioner's term. It 
allows for planning and continuity of leadership. It minimizes the 
ability of an administration to play games with the timing of the term 
by waiting to fill a vacancy.
  If the term follows the person, then the tenure of each Commissioner 
begins on the date of that individual's appointment. Under this 
scenario, a President deliberately could wait to appoint a new 
Commissioner until right before the end of the President's term, 
leaving the next President to inherit an appointee whom the new 
President did not choose.
  While the President waited, the IRS could be without a permanent 
Commissioner indefinitely. That would put tax administration at risk.
  There is another reason why it is important to clarify the term of 
the Commissioner. Ambiguity in the term could lead taxpayers to 
question whether the Commissioner is legitimately in office. And thus 
ambiguity could call into question the Commissioner's authority to 
enforce the tax laws.
  For example, if the term arguably ended in November, but the 
Commissioner signed a tax pronouncement the next month, in December, 
then a taxpayer might challenge the Commissioner's authority to act. 
Tax administration could be compromised. Taxes that are legally owed 
might not be collected.
  Staff for the Treasury and the Senate gave this issue much thoughtful 
discussion. We received credible legal opinions on both sides. We need 
to resolve the tenure of the term before the Senate confirms another 
Commissioner.
  To resolve the differences of interpretation, I worked with the 
administration to develop the language in this bill. The ranking 
Republican member of the Finance Committee, my friend, Senator Chuck 
Grassley, is the principal cosponsor. I am advised that the President 
and the Treasury Secretary both agree that this legislation is 
necessary to resolve any concerns over the term of the Commissioner.
  Upon enactment of this legislation, the Finance Committee and the 
full Senate will be able to take further necessary steps to confirm a 
new Commissioner. The IRS needs strong leadership for the upcoming 
filing season and beyond.
  I thank my colleagues for their support of this legislation to 
clarify the term of the IRS Commissioner.
  Mr. President, the legislative history of this provision is 
inextricably tied to the legal opinions of distinguished counsel for 
the Senate, the Justice Department, and the Congressional Research 
Service. The opinion of the Senate Legal Counsel reflects the 
motivations of this Senator in advancing this legislation. And the 
opinions of the Justice Department and the Congressional Research 
Service are essential to understanding the need for this legislation. 
Mr. President, I commend to my colleagues the legal opinions prepared 
by the Senate Legal Counsel, the Justice Department's Office of Legal 
Counsel, and the Congressional Research Service's American Law 
Division.
  Mr. PRYOR. Mr. President, I ask unanimous consent that the bill be 
read three times, passed, and the motion to reconsider be laid upon the 
table, and that any statements relating to the measure be printed in 
the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The bill (S. 2436) was ordered to be engrossed for a third reading, 
was read the third time, and passed, as follows:

                                S. 2436

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. CLARIFICATION OF TERM OF THE COMMISSIONER OF 
                   INTERNAL REVENUE.

       (a) In General.--Paragraph (1) of section 7803(a) of the 
     Internal Revenue Code of 1986 (relating to appointment) is 
     amended to read as follows:
       ``(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.
       ``(C) Vacancy.--Any individual appointed as Commissioner of 
     Internal Revenue during a term as defined in subparagraph (B) 
     shall be appointed for the remainder of that term.
       ``(D) Removal.--The Commissioner may be removed at the will 
     of the President.
       ``(E) Reappointment.--The Commissioner may be appointed to 
     serve more than one term.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply as if included in the amendment made by section 
     1102(a) of the Internal Revenue Service Restructuring and 
     Reform Act of 1998.




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