PRIA, Government Policy, Made Personal

Summary

The National Taxpayer Advocate can issue a Taxpayer Assistance Order if a taxpayer applies to the Office of the Taxpayer Advocate in the form and time the IRS requires and the Advocate finds the taxpayer is facing a significant hardship from how the IRS is handling their taxes or meets other regulatory rules. Significant hardship includes an immediate threat of adverse action, a delay of more than 30 days in fixing account problems, large costs (like attorney fees) if no help is given, or harm that cannot be undone or that causes long-term damage. If IRS staff ignore published internal guidance, the Advocate must judge the hardship factors in the taxpayer’s favor. A Taxpayer Assistance Order can require the IRS to return property taken by levy or to stop, start, or refrain from actions under chapter 64, subchapter B of chapter 70, chapter 78, or any other law the Advocate names. Only the Advocate, the Commissioner of Internal Revenue, or the Deputy Commissioner can change or cancel an order, and they must give a written reason. Time limits for actions covered by the order are paused from the date the taxpayer applies until the Advocate decides and for any extra time the Advocate sets. The Advocate may act without an application, may use designees, and the order also applies to private collectors under section 6306(b).

Title 26, §7811

Internal Revenue Code, Source: USLM XML via OLRC

(a)Authority to issue

(1)In general

Upon application filed by a taxpayer with the Office of the Taxpayer Advocate (in such form, manner, and at such time as the Secretary shall by regulations prescribe), the National Taxpayer Advocate may issue a Taxpayer Assistance Order if—

(A)the National Taxpayer Advocate determines the taxpayer is suffering or about to suffer a significant hardship as a result of the manner in which the internal revenue laws are being administered by the Secretary; or

(B)the taxpayer meets such other requirements as are set forth in regulations prescribed by the Secretary.

(2)Determination of hardship

For purposes of paragraph (1), a significant hardship shall include—

(A)an immediate threat of adverse action;

(B)a delay of more than 30 days in resolving taxpayer account problems;

(C)the incurring by the taxpayer of significant costs (including fees for professional representation) if relief is not granted; or

(D)irreparable injury to, or a long-term adverse impact on, the taxpayer if relief is not granted.

(3)Standard where administrative guidance not followed

In cases where any Internal Revenue Service employee is not following applicable published administrative guidance (including the Internal Revenue Manual), the National Taxpayer Advocate shall construe the factors taken into account in determining whether to issue a Taxpayer Assistance Order in the manner most favorable to the taxpayer.

(b)Terms of a Taxpayer Assistance Order

The terms of a Taxpayer Assistance Order may require the Secretary within a specified time period—

(1)to release property of the taxpayer levied upon, or

(2)to cease any action, take any action as permitted by law, or refrain from taking any action, with respect to the taxpayer under—

(A)chapter 64 (relating to collection),

(B)subchapter B of chapter 70 (relating to bankruptcy and receiverships),

(C)chapter 78 (relating to discovery of liability and enforcement of title), or

(D)any other provision of law which is specifically described by the National Taxpayer Advocate in such order.

(c)Authority to modify or rescind

Any Taxpayer Assistance Order issued by the National Taxpayer Advocate under this section may be modified or rescinded—

(1)only by the National Taxpayer Advocate, the Commissioner of Internal Revenue, or the Deputy Commissioner of Internal Revenue, and

(2)only if a written explanation of the reasons for the modification or rescission is provided to the National Taxpayer Advocate.

(d)Suspension of running of period of limitation

The running of any period of limitation with respect to any action described in subsection (b) shall be suspended for— (1)

(2)any period specified by the National Taxpayer Advocate in a Taxpayer Assistance Order issued pursuant to such application.

(e)Independent action of National Taxpayer Advocate

Nothing in this section shall prevent the National Taxpayer Advocate from taking any action in the absence of an application under subsection (a).

(f)National Taxpayer Advocate

For purposes of this section, the term “National Taxpayer Advocate” includes any designee of the National Taxpayer Advocate.

(g)Application to persons performing services under a qualified tax collection contract

Any order issued or action taken by the National Taxpayer Advocate pursuant to this section shall apply to persons performing services under a qualified tax collection contract (as defined in section 6306(b)) to the same extent and in the same manner as such order or action applies to the Secretary.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2004—Subsec. (g). Pub. L. 108–357 added subsec. (g). 2000—Subsec. (a)(3). Pub. L. 106–554, § 1(a)(7) [title III, § 319(28)], substituted “Taxpayer Assistance Order” for “taxpayer assistance order”. Subsec. (d)(1). Pub. L. 106–554, § 1(a)(7) [title III, § 319(29)], substituted “National Taxpayer Advocate’s” for “Ombudsman’s”. 1998—Subsec. (a). Pub. L. 105–206, § 1102(c), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “Upon application filed by a taxpayer with the Office of the Taxpayer Advocate (in such form, manner, and at such time as the Secretary shall by

Regulations

prescribe), the Taxpayer Advocate may issue a Taxpayer Assistance Order if, in the determination of the Taxpayer Advocate, the taxpayer is suffering or about to suffer a significant hardship as a result of the manner in which the internal revenue laws are being administered by the Secretary.” Subsec. (b)(2)(D). Pub. L. 105–206, § 1102(d)(1)(C), substituted “National Taxpayer Advocate” for “Taxpayer Advocate”. Subsec. (c). Pub. L. 105–206, § 1102(d)(1)(D), substituted “National Taxpayer Advocate” for “Taxpayer Advocate” wherever appearing. Subsec. (d)(1). Pub. L. 105–206, § 1102(d)(2), which directed amendment of par. (1) by substituting “National Taxpayer Advocate’s” for “Taxpayer Advocate’s”, could not be executed because the words “Taxpayer Advocate’s” did not appear. Subsec. (d)(2). Pub. L. 105–206, § 1102(d)(1)(E), substituted “National Taxpayer Advocate” for “Taxpayer Advocate”. Subsec. (e). Pub. L. 105–206, § 1102(d)(1)(F), (3), substituted “National Taxpayer Advocate” for “Taxpayer Advocate” in heading and text. Subsec. (f). Pub. L. 105–206, § 1102(d)(1)(G), (3), substituted “National Taxpayer Advocate” for “Taxpayer Advocate” in heading and in two places in text. 1996—Subsec. (a). Pub. L. 104–168, § 101(b)(1), substituted “the Office of the Taxpayer Advocate” for “the Office of the Ombudsman” and substituted “Taxpayer Advocate” for “Ombudsman” in two places. Subsec. (b). Pub. L. 104–168, § 102(a)(1), inserted “within a specified time period” after “the Secretary”. Subsec. (b)(2). Pub. L. 104–168, § 102(a)(2), inserted “take any action as permitted by law,” after “cease any action,”. Subsec. (b)(2)(D). Pub. L. 104–168, § 101(b)(1)(B), substituted “Taxpayer Advocate” for “Ombudsman”. Subsec. (c). Pub. L. 104–168, § 102(b), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “Any Taxpayer Assistance Order issued by the Ombudsman under this section may be modified or rescinded only by the Ombudsman, a district director, a service center director, a compliance center director, a regional director of appeals, or any superior of any such person.” Subsecs. (d)(2) to (f). Pub. L. 104–168, § 101(b)(1)(B), substituted “Taxpayer Advocate” for “Ombudsman” wherever appearing.

Statutory Notes and Related Subsidiaries

Effective Date

of 1996 AmendmentAmendment by section 101(b)(1) of Pub. L. 104–168 effective

July 30, 1996, see section 101(c) of Pub. L. 104–168, set out as a note under section 7802 of this title. Pub. L. 104–168, title I, § 102(c),

July 30, 1996, 110 Stat. 1456, provided that: “The

Amendments

made by this section [amending this section] shall take effect on the date of the enactment of this Act [July 30, 1996].”

Effective Date

Pub. L. 100–647, title VI, § 6230(d), Nov. 10, 1988, 102 Stat. 3734, provided that: “The

Amendments

made by this section [enacting this section] shall take effect on January 1, 1989.”

Regulations

Pub. L. 100–647, title VI, § 6230(c), Nov. 10, 1988, 102 Stat. 3734, provided that: “The Secretary of the Treasury or the Secretary’s delegate shall issue such

Regulations

as the Secretary deems necessary within 90 days of the date of the enactment of this Act [Nov. 10, 1988] in order to carry out the purposes of section 7811 of the 1986 Code (as added by this section) and to ensure taxpayers uniform access to administrative procedures.”

§7811 Taxpayer Assistance Orders

Summary

Title 26, §7811

Notes & Related Subsidiaries

Editorial Notes

Amendments

Regulations

Statutory Notes and Related Subsidiaries

Effective Date

Amendments

Effective Date

Amendments

Regulations

Regulations

Citations & Metadata