[Federal Register Volume 85, Number 222 (Tuesday, November 17, 2020)]
[Proposed Rules]
[Pages 73252-73253]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-25240]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Chapter I


IRS Review of Regulatory and Other Relief To Support Economic 
Recovery

AGENCY: Internal Revenue Service, Department of the Treasury.

ACTION: Request for comments.

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SUMMARY: On May 19, 2020, the President signed Executive Order 13924, 
Executive Order On Regulatory Relief to Support Economic Recovery, to 
direct agencies to consider principles of fairness in administrative 
enforcement and adjudication and to consider rescinding, modifying, or 
waiving any regulations and other requirements that may inhibit the 
ongoing economic recovery from the Coronavirus Disease 2019 pandemic. 
In furtherance of E.O. 13924, this document invites members of the 
public to submit comments to the Internal Revenue Service concerning 
regulations and other requirements that can be rescinded, modified, or 
waived to assist business and individual taxpayers with the ongoing 
economic recovery from the Coronavirus Disease 2019 pandemic.

DATES: Comment due date: January 4, 2021.

ADDRESSES: Interested persons are invited to submit comments in 
response to this notice according to the instructions below. All 
submissions should refer to the title of this document, IRS Review of 
Regulatory and Other Relief to Support Economic Recovery.
    Submission of Comments: Taxpayers are strongly encouraged to submit 
comments electronically via the Federal eRulemaking Portal at 
www.regulations.gov (type IRS Review of Regulatory and Other Relief to 
Support Economic Recovery in the search field on the regulations.gov 
homepage to find this notice and submit comments). Alternatively, 
taxpayers may mail comments to: Internal Revenue Service, Attn: CC:PA: 
LPD:PR (IRS Review of Regulatory Relief) Room 5203, P.O. Box 7604, Ben 
Franklin Station, Washington, DC 20044.
    The IRS expects to have limited personnel available to process 
public comments that are submitted on paper through the mail. Any 
comments submitted on paper will be considered to the extent 
practicable.
    Public Inspection of Comments: In general, all comments received 
will be available for public inspection on www.regulations.gov. Once 
submitted to the Federal eRulemaking Portal, comments cannot be edited 
or withdrawn.

FOR FURTHER INFORMATION CONTACT: Kevin Gillin, IRS Office of Chief 
Counsel, Procedure and Administration, (202) 317-5403.

SUPPLEMENTARY INFORMATION: On May 19, 2020, the President signed 
Executive Order 13924, Executive Order on Regulatory Relief to Support 
Economic Recovery. Section 6 of the Order directs agencies to 
``consider the principles of fairness in administrative enforcement and 
adjudication'' and consider rescinding, modifying, or waiving any 
regulations and other requirements that may inhibit the ongoing 
economic recovery from the Coronavirus Disease 2019 (COVID-19) pandemic 
``consistent with applicable law and as they deem appropriate in the 
context of particular statutory and regulatory programs and the policy 
considerations identified in section 1 of this order.''
    Since the onset of COVID-19, and consistent with E.O. 13924, the 
Internal Revenue Service has taken numerous steps to adjust its 
compliance and enforcement practices to provide relief to individual 
and business taxpayers affected by the pandemic. The IRS has issued 
guidance in the Internal Revenue Bulletin designed to provide relief 
from statutory and regulatory requirements. In a series of Notices 
issued pursuant to I.R.C. Sec.  7508A, the IRS postponed deadlines for 
filing tax returns and making tax payments and extended the deadlines 
for other time sensitive acts. See, e.g., Notice 2020-18, Notice 2020-
20, and Notice 2020-23. The IRS also provided regulatory relief such as 
in Notice 2020-25, which sought to maintain liquidity and stability in 
markets by expanding the circumstances and time periods in which a tax-
exempt bond that is purchased by its state or local governmental issuer 
is treated as continuing in effect without resulting in a reissuance or 
retirement of the purchased tax-exempt bond.
    In May, the IRS also announced its People First Initiative to pause 
compliance and enforcement activity with respect to millions of 
American taxpayers by suspending the issuance of liens and levies, 
suspending payment dates under installment agreements, and postponing 
the initiation of new compliance actions.\1\ Most recently, the IRS 
announced additional relief options available to assist taxpayers 
experiencing financial difficulties which include abating penalties 
where appropriate, extending payment plans, expanding access to 
installment agreements, and providing relief for taxpayers having 
difficulty meeting the terms of previously accepted offers to settle 
tax debts.\2\ The IRS facilitated taxpayer communication with the IRS 
by allowing the use of images of signatures and digital signatures by 
taxpayers on statements and forms collected by the IRS outside of 
standard filing processes and the transmittal of communications by 
electronic facsimile and other secure electronic means.\3\ The IRS set 
out procedures allowing taxpayers to electronically fax forms (new IRS 
Form 7200) seeking claims for advance payments of the family and sick 
leave credits provided for by sections 7001 through 7004 of the 
Families First Coronavirus Response Act, Public Law 116-127, 134 Stat. 
178 (Families First Act) \4\ and claims for refund due to carryback of 
net operating losses and alternative minimum tax under sections 2303 
and 2305 of the Coronavirus Aid, Relief, and Economic Security Act, 
Public Law 116-136, 134 Stat. 281 (CARES Act) so that the IRS could 
expedite processing of these refund claims.\5\ To expedite taxpayer 
requests for pre-enforcement rulings, the IRS issued Revenue Procedure 
2020-29 allowing taxpayers to submit requests for advice such as letter 
rulings by electronic means and encouraged

[[Page 73253]]

taxpayers to seek expedited consideration of ruling requests if they 
faced a compelling need related to COVID-19.
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    \1\ https://www.irs.gov/newsroom/irs-unveils-new-people-first-initiative-covid-19-effort-temporarily-adjusts-suspends-key-compliance-program.
    \2\ https://www.irs.gov/about-irs/irs-offers-new-relief-options-to-help-taxpayers-affected-by-covid-19.
    \3\ https://www.irs.gov/pub/foia/ig/spder/nhq-01-0620-0002.pdf.
    \4\ https://www.irs.gov/instructions/i7200.
    \5\ https://www.irs.gov/newsroom/temporary-procedures-to-fax-certain-forms-1139-and-1045-due-to-covid-19.
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    Further supporting the relief from compliance and enforcement 
actions referenced above, the IRS continues to implement processes and 
procedures, consistent with the direction in section 6 of E.O. 13924, 
to promote fairness in administrative enforcement and adjudication. As 
part of its implementation of the Taxpayer First Act, Public Law 116-
25, 133 Stat. 981 (TFA), the IRS adopted procedures designed to ensure 
the independence of the IRS Independent Office of Appeals (Appeals). 
Appeals is an independent function within the IRS that performs quasi-
adjudicative functions by seeking to resolve a wide variety of disputes 
regarding enforcement of the Internal Revenue Code in a fair and 
impartial manner. See 26 U.S.C. 7803(e) (enacted by section 1001 of the 
TFA). These procedures, mandated by 26 U.S.C. 7803(e)(7)(A), provide 
most taxpayers with a copy of their administrative examination file 
prior to any hearing with Appeals. The IRS has also taken steps to 
ensure the independence of Appeals' determinations by, whenever 
possible, providing legal advice to Appeals from attorneys in the 
Office of Chief Counsel working independently from those who may have 
assisted in developing the case. See 26 U.S.C. 7803(e)(5)(A)(ii). To 
encourage transparency in the administrative process even before a case 
reaches Appeals, the IRS created a ``Respond Directly'' program that 
directs employees to provide access to open case files without 
requiring taxpayers to file a formal request under the Freedom of 
Information Act.
    The IRS operates under an extensive regime of statutory provisions 
that ensure prompt and fair administrative enforcement. As required by 
section 1204 of the Internal Revenue Service Restructuring and Reform 
Act of 1998, Public Law 105-206, 112 Stat. 685 (RRA `98), IRS employee 
performance metrics and compensation structures incentivize excellence, 
accuracy, integrity, efficiency, and fairness in the application of the 
law by prohibiting the use of records of tax enforcement results to 
evaluate employees. RRA '98 also created new collection due process 
rights that provide notice to taxpayers and an opportunity for 
independent review by the Office of Appeals, as well as judicial 
review, of IRS enforcement decisions to file a Notice of Federal Tax 
Lien or undertake a levy action.
    The IRS has also adopted principles that promote fair 
administrative enforcement. In a ``Taxpayer Bill of Rights,'' \6\ the 
IRS has outlined all of the rights provided in the Internal Revenue 
Code when dealing with the IRS, including the right to be informed, the 
right to challenge IRS determinations in an independent forum, and the 
right to a fair and just tax system. The Taxpayer Bill of Rights is 
prominently displayed as part of IRS Publication 1, Your Rights as a 
Taxpayer, which is regularly included with IRS correspondence with 
taxpayers.
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    \6\ https://www.irs.gov/taxpayer-bill-of-rights.
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    The above is just a sample of the numerous actions taken by the IRS 
thus far to assist taxpayers affected by COVID-19. The IRS will 
continue to review all temporary actions taken in response to COVID-19, 
including those outlined above, to determine whether those actions 
should become permanent to promote economic recovery. The IRS also 
welcomes comments from taxpayers on additional measures that might 
assist those affected by the COVID-19 pandemic and further aid in the 
ongoing economic recovery from the pandemic.

    Dated: November 5, 2020.
Sunita Lough,
Deputy Commissioner, Services and Enforcement.
[FR Doc. 2020-25240 Filed 11-13-20; 4:15 pm]
BILLING CODE 4830-01-P