[Federal Register Volume 61, Number 77 (Friday, April 19, 1996)]
[Proposed Rules]
[Pages 17265-17266]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-8241]



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be modified or rescinded by the Commissioner, Deputy Commissioner, or 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

    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

[[Page 17266]]

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.

* * * * *
    (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]
BILLING CODE 4830-01-U