26 U.S.C. § 7801: Authority of Department of the Treasury

Except as otherwise expressly provided by law, the administration and enforcement of this title shall be performed by or under the supervision of the Secretary of the Treasury. Chapter 53. Chapters 61 through 80, to the extent such chapters relate to the enforcement and administration of the provisions referred to in clause (i). Nothing in the Homeland Security Act of 2002 alters or repeals the rulings and interpretations of the Bureau of Alcohol, Tobacco, and Firearms in effect on the effective date of such Act, which concern the provisions of this title referred to in subparagraph (A). The Attorney General shall consult with the Secretary to achieve uniformity and consistency in administering provisions under chapter 53 of title 26, United States Code. Nothing in this section or section 301(f) of title 31 shall be considered to affect the duties, powers, or functions imposed upon, or vested in, the Department of Justice, or any officer thereof, by law existing on May 10, 1934 . Except as otherwise provided in this Act, the amendments made by this Act [amending this section] shall take effect on the date of the enactment of this Act [ Sept. 22, 1959 ]. The amendments made by section 2 of this Act [amending sections 7452 and 8023 of this title] shall take effect when the Chief Counsel for the Internal Revenue Service first appointed pursuant to the amendment made by section 1 of this Act [amending this section] qualifies and takes office.” identifies the Taxpayer Assistance Center proposed for closure and the date of such proposed closure; and identifies the relevant alternative sources of taxpayer assistance which may be utilized by taxpayers affected by such proposed closure; and the information included in the notice described in paragraph (1); the reasons for such proposed closure; and such other information as the Secretary may determine appropriate.” Information about common tax scams. Information on where and how to report tax scams. Additional advice on how taxpayers can protect themselves from identity theft and tax scams.” Not later than April 15, 2000 , the Secretary of the Treasury shall establish an interactive program on an Internet website where any taxpayer may generate an itemized receipt showing a proportionate allocation (in money terms) of the taxpayer’s total tax payments among the major expenditure categories. shall only require the input of the taxpayer’s total tax payments; and shall not require any identifying information relating to the taxpayer. the tax imposed by subtitle A of the Internal Revenue Code of 1986 for such taxable year (as shown on his return); and the tax imposed by section 3101 of such Code on wages received during such taxable year. National defense. International affairs. Medicaid. Medicare. Means-tested entitlements. Domestic discretionary. Social Security. Interest payments. All other. In addition, the tax receipt shall include selected examples of more specific expenditure items, including the items listed in subparagraph (B), either at the budget function, subfunction, or program, project, or activity levels, along with any other information deemed appropriate by the Secretary of the Treasury and the Director of the Office of Management and Budget to enhance taxpayer understanding of the Federal budget. Public schools funding programs. Student loans and college aid. Low-income housing programs. supplemental [sic] nutrition assistance program benefits and welfare programs. Law enforcement, including the Federal Bureau of Investigation, law enforcement grants to the States, and other Federal law enforcement personnel. Infrastructure, including roads, bridges, and mass transit. Farm subsidies. Congressional Member and staff salaries. Health research programs. Aid to the disabled. Veterans health care and pension programs. Space programs. Environmental cleanup programs. United States embassies. Military salaries. Foreign aid. Contributions to the North Atlantic Treaty Organization. Amtrak. United States Postal Service. No charge shall be imposed to cover any cost associated with the production or distribution of the tax receipt. The Secretary of the Treasury may prescribe such regulations as may be necessary to carry out this section.” ensure the successful implementation of the priorities specified by Congress in this Act [see Short Title of 2019 Amendment note set out under section 1 of this title ]; prioritize taxpayer services to ensure that all taxpayers easily and readily receive the assistance that they need; streamline the structure of the agency including minimizing the duplication of services and responsibilities within the agency; best position the Internal Revenue Service to combat cybersecurity and other threats to the Internal Revenue Service; and address whether the Criminal Investigation Division of the Internal Revenue Service should report directly to the Commissioner of Internal Revenue. Paragraph (3) of section 1001(a) of the Internal Revenue Service Restructuring and Reform Act of 1998 [ Pub. L. 105–206 , set out below] shall cease to apply beginning 1 year after the date on which the plan described in subsection (a) is submitted to Congress.” supersede any organization or reorganization of the Internal Revenue Service based on any statute or reorganization plan applicable on the effective date of this section; eliminate or substantially modify the existing organization of the Internal Revenue Service which is based on a national, regional, and district structure; establish organizational units serving particular groups of taxpayers with similar needs; and ensure an independent appeals function within the Internal Revenue Service, including the prohibition in the plan of ex parte communications between appeals officers and other Internal Revenue Service employees to the extent that such communications appear to compromise the independence of the appeals officers. Nothing in the plan developed and implemented under subsection (a) shall be considered to impair any right or remedy, including trial by jury, to recover any internal revenue tax alleged to have been erroneously or illegally assessed or collected, or any penalty claimed to have been collected without authority, or any sum alleged to have been excessive or in any manner wrongfully collected under the internal revenue laws. For the purpose of any action to recover any such tax, penalty, or sum, all statutes, rules, and regulations referring to the collector of internal revenue, the principal officer for the internal revenue district, or the Secretary, shall be deemed to refer to the officer whose act or acts referred to in the preceding sentence gave rise to such action. The venue of any such action shall be the same as under existing law. which have been issued, made, granted, or allowed to become effective by the President, any Federal agency or official thereof, or by a court of competent jurisdiction, in the performance of any function transferred or affected by the reorganization of the Internal Revenue Service or any other administrative unit of the Department of the Treasury under this section; and which are in effect at the time this section takes effect, or were final before the effective date of this section and are to become effective on or after the effective date of this section, The provisions of this section shall not affect any proceedings, including notices of proposed rulemaking, or any application for any license, permit, certificate, or financial assistance pending before the Department of the Treasury (or any administrative unit of the Department, including the Internal Revenue Service) at the time this section takes effect, with respect to functions transferred or affected by the reorganization under this section but such proceedings and applications shall continue. Orders shall be issued in such proceedings, appeals shall be taken therefrom, and payments shall be made pursuant to such orders, as if this section had not been enacted, and orders issued in any such proceedings shall continue in effect until modified, terminated, superseded, or revoked by a duly authorized official, by a court of competent jurisdiction, or by operation of law. Nothing in this paragraph shall be deemed to prohibit the discontinuance or modification of any such proceeding under the same terms and conditions and to the same extent that such proceeding could have been discontinued or modified if this section had not been enacted. The provisions of this section shall not affect suits commenced before the effective date of this section, and in all such suits, proceedings shall be had, appeals taken, and judgments rendered in the same manner and with the same effect as if this section had not been enacted. No suit, action, or other proceeding commenced by or against the Department of the Treasury (or any administrative unit of the Department, including the Internal Revenue Service), or by or against any individual in the official capacity of such individual as an officer of the Department of the Treasury, shall abate by reason of the enactment of this section. Any administrative action relating to the preparation or promulgation of a regulation by the Department of the Treasury (or any administrative unit of the Department, including the Internal Revenue Service) relating to a function transferred or affected by the reorganization under this section may be continued by the Department of the Treasury through any appropriate administrative unit of the Department, including the Internal Revenue Service with the same effect as if this section had not been enacted. This section shall take effect on the date of the enactment of this Act [ July 22, 1998 ].” The Secretary of the Treasury or the Secretary’s delegate shall, as soon as practicable, but not later than 180 days after the date of the enactment of this Act [ July 22, 1998 ], establish procedures to clearly alert married taxpayers of their joint and several liabilities on all appropriate publications and instructions. The procedures under subsection (a) shall include requirements that notice of an individual’s right to relief under section 6015 of the Internal Revenue Code of 1986 shall be included in the statement required by section 6227 of the Omnibus Taxpayer Bill of Rights [ Pub. L. 100–647 , set out below] (Internal Revenue Service Publication No. 1) and in any collection-related notices.” to be represented at interviews with the Internal Revenue Service by any person authorized to practice before the Internal Revenue Service; and to suspend an interview pursuant to section 7521(b)(2) of the Internal Revenue Code of 1986.” The Secretary of the Treasury or the Secretary’s delegate shall, as soon as practicable, but not later than 180 days after the date of the enactment of this Act [ July 22, 1998 ], incorporate into the statement required by section 6227 of the Omnibus Taxpayer Bill of Rights [ Pub. L. 100–647 , set out below] (Internal Revenue Service Publication No. 1) a statement which sets forth in simple and nontechnical terms the criteria and procedures for selecting taxpayers for examination. Such statement shall not include any information the disclosure of which would be detrimental to law enforcement, but shall specify the general procedures used by the Internal Revenue Service, including whether taxpayers are selected for examination on the basis of information available in the media or on the basis of information provided to the Internal Revenue Service by informants. The Secretary shall transmit drafts of the statement required under subsection (a) (or proposed revisions to any such statement) to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate on the same day.” any manually generated correspondence received by a taxpayer from the Internal Revenue Service shall include in a prominent manner the name, telephone number, and unique identifying number of an Internal Revenue Service employee the taxpayer may contact with respect to the correspondence; any other correspondence or notice received by a taxpayer from the Internal Revenue Service shall include in a prominent manner a telephone number that the taxpayer may contact; and an Internal Revenue Service employee shall give a taxpayer during a telephone or personal contact the employee’s name and unique identifying number. The Secretary of the Treasury or the Secretary’s delegate shall develop a procedure under which, to the extent practicable and if advantageous to the taxpayer, one Internal Revenue Service employee shall be assigned to handle a taxpayer’s matter until it is resolved. The Secretary of the Treasury or the Secretary’s delegate shall provide, in appropriate circumstances, that taxpayer questions on telephone helplines of the Internal Revenue Service are answered in Spanish. The Secretary of the Treasury or the Secretary’s delegate shall provide, in appropriate circumstances, on telephone helplines of the Internal Revenue Service an option for any taxpayer to talk to an Internal Revenue Service employee during normal business hours. The person shall direct phone questions of the taxpayer to other Internal Revenue Service personnel who can provide assistance to the taxpayer. Except as otherwise provided in this subsection, this section shall take effect 60 days after the date of the enactment of this Act [ July 22, 1998 ]. Subsection (c) shall take effect on January 1, 2000 . Subsection (d) shall take effect on January 1, 2000 . Any requirement under this section to provide a unique identifying number shall take effect 6 months after the date of the enactment of this Act [ July 22, 1998 ].” questions frequently asked by taxpayers with respect to return filing; common errors made by taxpayers in filling out their returns; areas of law which frequently result in disagreements between taxpayers and the Internal Revenue Service; major areas of law in which there is no (or incomplete) published guidance or in which the law is uncertain; areas in which revenue officers make frequent errors interpreting or applying the law; the impact of recent legislation on complexity; and forms supplied by the Internal Revenue Service, including the time it takes for taxpayers to complete and review forms, the number of taxpayers who use each form, and how recent legislation has affected the time it takes to complete and review forms. for reducing the complexity of the administration of Federal tax laws; and for repeal or modification of any provision the Commissioner believes adds undue and unnecessary complexity to the administration of the Federal tax laws.” While the budget for the Internal Revenue Service (hereafter referred to as the ‘IRS’) has risen from $2.5 billion in fiscal year 1979 to $7.3 billion in fiscal year 1996, tax returns processing has not become significantly faster, tax collection rates have not significantly increased, and the accuracy and timeliness of taxpayer assistance has not significantly improved. To date, the Tax Systems Modernization (TSM) program has cost the taxpayers $2.5 billion, with an estimated cost of $8 billion. Despite this investment, modernization efforts were recently described by the GAO as ‘chaotic’ and ‘ad hoc’. While the IRS maintains that TSM will increase efficiency and thus revenues, Congress has had to appropriate additional funds in recent years for compliance initiatives in order to increase tax revenues. Because TSM has not been implemented, the IRS continues to rely on paper returns, processing a total of 14 billion pieces of paper every tax season. This results in an extremely inefficient system. This lack of efficiency reduces the level of customer service and impedes the ability of the IRS to collect revenue. The present status of the IRS shows the need for the establishment of a Commission which will examine the organization of IRS and recommend actions to expedite the implementation of TSM and improve service to taxpayers. To carry out the purposes of this section, there is established a National Commission on Restructuring the Internal Revenue Service (in this section referred to as the ‘Commission’). Five members appointed by the President, two from the executive branch of the Government, two from private life, and one from an organization that represents a substantial number of Internal Revenue Service employees. Four members appointed by the Majority Leader of the Senate, one from Members of the Senate and three from private life. Two members appointed by the Minority Leader of the Senate, one from Members of the Senate and one from private life. Four members appointed by the Speaker of the House of Representatives, one from Members of the House of Representatives and three from private life. Two members appointed by the Minority Leader of the House of Representatives, one from Members of the House of Representatives and one from private life. “The Commissioner of the Internal Revenue Service shall be an ex officio member of the Commission. The Commission shall elect Co-Chairs from among its members. After its initial meeting, the Commission shall meet upon the call of the Co-Chairs or a majority of its members. Nine members of the Commission shall constitute a quorum. Any vacancy in the Commission shall not affect its powers, but shall be filled in the same manner in which the original appointment was made. It is the sense of the Congress that members of the Committee [Commission] should be appointed not more than 60 days after the date of the enactment of this section [ Nov. 19, 1995 ]. If, after 60 days from the date of the enactment of this section, seven or more members of the Commission have been appointed, members who have been appointed may meet and select Co-Chairs who thereafter shall have the authority to begin the operations of the Commission, including the hiring of staff. to conduct, for a period of not to exceed 15 months from the date of its first meeting, the review described in paragraph (2), and to submit to the Congress a final report of the results of the review, including recommendations for restructuring the IRS. its organizational structure; its paper processing and return processing activities; its infrastructure; and the collection process; making returns processing ‘paperless’; modernizing IRS operations; improving the collections process without major personnel increases or increased funding; improving taxpayer accounts management; improving the accuracy of information requested by taxpayers in order to file their returns; and changing the culture of the IRS to make the organization more efficient, productive, and customer-oriented; whether the IRS could be replaced with a quasi-governmental agency with tangible incentives and internally managing its programs and activities and for modernizing its activities, and whether the IRS could perform other collection, information, and financial service functions of the Federal Government. hold such hearings and sit and act at such times and places, take such testimony, receive such evidence, administer such oaths, and require, by subpoena or otherwise, the attendance and testimony of such witnesses and the production of such books, records, correspondence, memoranda, papers, and documents, as the Commission or such designated subcommittee or designated member may deem advisable. Subpoenas issued under subparagraph (A)(ii) may be issued under the signature of the Co-Chairs of the Commission, the chairman of any designated subcommittee, or any designated member, and may be served by any person designated by such Co-Chairs, subcommittee chairman, or member. The provisions of sections 102 through 104 of the Revised Statutes of the United States ( 2 U.S.C. 192–194 ) shall apply in the case of any failure of any witness to comply with any subpoena or to testify when summoned under authority of this section. The Commission may, to such extent and in such amounts as are provided in appropriation Acts, enter into contracts to enable the Commission to discharge its duties under this section. The Commission is authorized to secure directly from any executive department, bureau, agency, board, commission, office, independent establishment, or instrumentality of the Government, information, suggestions, estimates, and statistics for the purposes of this section. Each such department, bureau, agency, board, commission, office, establishment, or instrumentality shall, to the extent authorized by law, furnish such information, suggestions, estimates, and statistics directly to the Commission, upon request made by the Co-Chairs. The Secretary of the Treasury is authorized on a nonreimbursable basis to provide the Commission with administrative services, funds, facilities, staff, and other support services for the performance of the Commission’s functions. The Administrator of General Services shall provide to the Commission on a nonreimbursable basis such administrative support services as the Commission may request. In addition to the assistance set forth in subparagraphs (A) and (B), departments and agencies of the United States are authorized to provide to the Commission such services, funds, facilities, staff, and other support services as they may deem advisable and as may be authorized by law. The Commission may use the United States mails in the same manner and under the same conditions as departments and agencies of the United States. The Commission may accept, use, and dispose of gifts or donations of services or property in carrying out its duties under this section. The Co-Chairs, in accordance with rules agreed upon by the Commission, may appoint and fix the compensation of a staff director and such other personnel as may be necessary to enable the Commission to carry out its functions, without regard to the provisions of title 5, United States Code, governing appointments in the competitive service, and without regard to the provisions of chapter 51 and subchapter III of chapter 53 of such title relating to classification and General Schedule pay rates, except that no rate of pay fixed under this subsection may exceed the equivalent of that payable to a person occupying a position at level V of the Executive Schedule under section 5316 of title 5 , United States Code. Any Federal Government employee may be detailed to the Commission without reimbursement from the Commission, and such detailee shall retain the rights, status, and privileges of his or her regular employment without interruption. The Commission is authorized to procure the services of experts and consultants in accordance with section 3109 of title 5 , United States Code, but at rates not to exceed the daily rate paid a person occupying a position at level IV of the Executive Schedule under section 5315 of title 5 , United States Code. Except as provided in subparagraph (B), each member of the Commission may be compensated at not to exceed the daily equivalent of the annual rate of basic pay in effect for a position at level IV of the Executive Schedule under section 5315 of title 5 , United States Code, for each day during which that member is engaged in the actual performance of the duties of the Commission. Members of the Commission who are officers or employees of the United States or Members of Congress shall receive no additional pay on account of their service on the Commission. While away from their homes or regular places of business in the performance of services for the Commission, members of the Commission may be allowed travel expenses, including per diem in lieu of subsistence, in the same manner as persons employed intermittently in the Government service are allowed expenses under section 5703(b) of title 5 , United States Code. Not later than 15 months after the date of the first meeting of the Commission, the Commission shall submit to the Congress its final report, as described in subsection (c)(2). The Commission, and all the authorities of this section, shall terminate on the date which is 60 days after the date on which a final report is required to be transmitted under paragraph (1). The Commission may use the 60-day period referred to in subparagraph (A) for the purpose of concluding its activities, including providing testimony to committees of Congress concerning its final report and disseminating that report. Such sums as may be necessary are authorized to be appropriated for the activities of the Commission. Notwithstanding any other provision of this Act, $1,000,000 shall be available from fiscal year 1996 funds appropriated to the Internal Revenue Service, ‘Information systems’ account, for the activities of the Commission, to remain available until expended.” the rights of a taxpayer and the obligations of the Internal Revenue Service (hereinafter in this section referred to as the ‘Service’) during an audit; the procedures by which a taxpayer may appeal any adverse decision of the Service (including administrative and judicial appeals); the procedures for prosecuting refund claims and filing of taxpayer complaints; and the procedures which the Service may use in enforcing the internal revenue laws (including assessment, jeopardy assessment, levy and distraint, and enforcement of liens). The Secretary of the Treasury shall transmit drafts of the statement required under subsection (a) (or proposed revisions of any such statement) to the Committee on Ways and Means of the House of Representatives, the Committee on Finance of the Senate, and the Joint Committee on Taxation on the same day. The statement prepared in accordance with subsections (a) and (b) shall be distributed by the Secretary of the Treasury to all taxpayers the Secretary contacts with respect to the determination or collection of any tax (other than by providing tax forms). The Secretary shall take such actions as the Secretary deems necessary to ensure that such distribution does not result in multiple statements being sent to any one taxpayer.”