
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document affected by Public Law 107-16 Section 620]
[CITE: 26USC7801]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                Subtitle F--Procedure and Administration
 
                        CHAPTER 80--GENERAL RULES
 
           Subchapter A--Application of Internal Revenue Laws
 
Sec. 7801. Authority of Department of the Treasury


(a) Powers and duties of Secretary

    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.

[(b) Repealed. Pub. L. 97-258, Sec. 5(b), Sept. 13, 1982, 96 Stat. 1068, 
        1078]

(c) Functions of Department of Justice unaffected

    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.

(Aug. 16, 1954, ch. 736, 68A Stat. 915; Pub. L. 86-368, Sec. 1, Sept. 
22, 1959, 73 Stat. 647; Pub. L. 88-426, title III, Sec. 305(39), Aug. 
14, 1964, 78 Stat. 427; Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(B), 
Oct. 4, 1976, 90 Stat. 1834; Pub. L. 97-258, Secs. 2(f)(1), 5(b), Sept. 
13, 1982, 96 Stat. 1059, 1068, 1078.)


                               Amendments

    1982--Subsec. (b). Pub. L. 97-258, Sec. 5(b), struck out subsec. (b) 
which related to Office of General Counsel of Department of the 
Treasury. See section 301 of Title 31, Money and Finance.
    Subsec. (c). Pub. L. 97-258, Sec. 2(f)(1), inserted ``or section 
301(f) of title 31'' after ``Nothing in this section''.
    1976--Subsec. (b). Pub. L. 94-455 substituted ``Secretary of the 
Treasury'' for ``Secretary'' in four places, in par. (1) after 
``prescribed by the'', in par. (2) after ``prescribed by the'' and in 
third sentence thereof ``The'', and in par. (3) before ``may appoint and 
fix''.
    1964--Subsec. (b)(2). Pub. L. 88-426 struck out provisions which 
prescribed compensation of Assistant General Counsel.
    1959--Pub. L. 86-368 provided for Presidential appointment and for 
compensation of Assistant General Counsel who shall be Chief Counsel for 
Internal Revenue Service.


                    Effective Date of 1964 Amendment

    Amendment by Pub. L. 88-426 effective on first day of first pay 
period which begins on or after July 1, 1964, except to the extent 
provided in section 501(c) of Pub. L. 88-426, see section 501 of Pub. L. 
88-426.


                    Effective Date of 1959 Amendment

    Section 3 of Pub. L. 86-368 provided that:
    ``(a) 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].
    ``(b) 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.''


                                 Repeals

    Pub. L. 86-368, Sec. 1, Sept. 22, 1959, 73 Stat. 648; Pub. L. 88-
426, title III, Sec. 305(39), Aug. 14, 1964, 78 Stat. 427; and Pub. L. 
94-455, title XIX, Sec. 1906(b)(13)(B), Oct. 4, 1976, 90 Stat. 1834, 
cited as credits to this section, were repealed by Pub. L. 97-258, 
Sec. 5(b), Sept. 13, 1982, 96 Stat. 1079, 1080, 1082.


                            Savings Provision

    Section 4 of Pub. L. 86-368 provided that the position of Assistant 
General Counsel serving as Chief Counsel of the Internal Revenue Service 
was abolished as of the time that the Chief Counsel for the Internal 
Revenue Service appointed pursuant to the amendment to this section by 
Pub. L. 86-368, took office, but that Pub. L. 86-368 was not to be 
construed to otherwise abolish, terminate, or change any office or 
position, or employment of any officer or employee existing immediately 
preceding Sept. 22, 1959, and that any delegation of authority pursuant 
to Reorg. Plan No. 26 of 1950 or Reorg. Plan No. 2 of 1952 including any 
redelegation of authority, in effect immediately preceding Sept. 22, 
1959, was to remain in effect unless distinctly inconsistent or 
manifestly incompatible with the amendment made to this section by Pub. 
L. 86-368.


                       Itemized Income Tax Receipt

    Pub. L. 106-58, title VI, Sec. 650, Sept. 29, 1999, 113 Stat. 479, 
provided that:
    ``(a) In General.--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.
    ``(b) Information Necessary To Generate Receipt.--For purposes of 
generating an itemized receipt under subsection (a), the interactive 
program--
        ``(1) shall only require the input of the taxpayer's total tax 
    payments; and
        ``(2) shall not require any identifying information relating to 
    the taxpayer.
    ``(c) Total Tax Payments.--For purposes of this section, total tax 
payments of an individual for any taxable year are--
        ``(1) the tax imposed by subtitle A of the Internal Revenue Code 
    of 1986 for such taxable year (as shown on his return); and
        ``(2) the tax imposed by section 3101 of such Code on wages 
    received during such taxable year.
    ``(d) Content of Tax Receipt.--
        ``(1) Major expenditure categories.--For purposes of subsection 
    (a), the major expenditure categories are:
            ``(A) National defense.
            ``(B) International affairs.
            ``(C) Medicaid.
            ``(D) Medicare.
            ``(E) Means-tested entitlements.
            ``(F) Domestic discretionary.
            ``(G) Social Security.
            ``(H) Interest payments.
            ``(I) All other.
        ``(2) Other items on receipt.--
            ``(A) In general.--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.
            ``(B) Listed items.--The expenditure items listed in this 
        subparagraph are as follows:
                ``(i) Public schools funding programs.
                ``(ii) Student loans and college aid.
                ``(iii) Low-income housing programs.
                ``(iv) Food stamp and welfare programs.
                ``(v) Law enforcement, including the Federal Bureau of 
            Investigation, law enforcement grants to the States, and 
            other Federal law enforcement personnel.
                ``(vi) Infrastructure, including roads, bridges, and 
            mass transit.
                ``(vii) Farm subsidies.
                ``(viii) Congressional Member and staff salaries.
                ``(ix) Health research programs.
                ``(x) Aid to the disabled.
                ``(xi) Veterans health care and pension programs.
                ``(xii) Space programs.
                ``(xiii) Environmental cleanup programs.
                ``(xiv) United States embassies.
                ``(xv) Military salaries.
                ``(xvi) Foreign aid.
                ``(xvii) Contributions to the North Atlantic Treaty 
            Organization.
                ``(xviii) Amtrak.
                ``(xix) United States Postal Service.
    ``(e) Cost.--No charge shall be imposed to cover any cost associated 
with the production or distribution of the tax receipt.
    ``(f) Regulations.--The Secretary of the Treasury may prescribe such 
regulations as may be necessary to carry out this section.''


               Reorganization of Internal Revenue Service

    Pub. L. 105-206, title I, Sec. 1001, July 22, 1998, 112 Stat. 689, 
provided that:
    ``(a) In General.--The Commissioner of Internal Revenue shall 
develop and implement a plan to reorganize the Internal Revenue Service. 
The plan shall--
        ``(1) 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;
        ``(2) eliminate or substantially modify the existing 
    organization of the Internal Revenue Service which is based on a 
    national, regional, and district structure;
        ``(3) establish organizational units serving particular groups 
    of taxpayers with similar needs; and
        ``(4) 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.
    ``(b) Savings Provisions.--
        ``(1) Preservation of specific tax rights and remedies.--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.
        ``(2) Continuing effect of legal documents.--All orders, 
    determinations, rules, regulations, permits, agreements, grants, 
    contracts, certificates, licenses, registrations, privileges, and 
    other administrative actions--
            ``(A) 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
            ``(B) 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,
    shall continue in effect according to their terms until modified, 
    terminated, superseded, set aside, or revoked in accordance with law 
    by the President, the Secretary of the Treasury, the Commissioner of 
    Internal Revenue, or other authorized official, a court of competent 
    jurisdiction, or by operation of law.
        ``(3) Proceedings not affected.--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.
        ``(4) Suits not affected.--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.
        ``(5) Nonabatement of actions.--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.
        ``(6) Administrative actions relating to promulgation of 
    regulations.--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.
    ``(c) Effective Date.--This section shall take effect on the date of 
the enactment of this Act [July 22, 1998].''


      Internal Revenue Service Mission To Focus on Taxpayers' Needs

    Pub. L. 105-206, title I, Sec. 1002, July 22, 1998, 112 Stat. 690, 
provided that: ``The Internal Revenue Service shall review and restate 
its mission to place a greater emphasis on serving the public and 
meeting taxpayers' needs.''


               Explanation of Joint and Several Liability

    Pub. L. 105-206, title III, Sec. 3501, July 22, 1998, 112 Stat. 770, 
provided that:
    ``(a) In General.--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.
    ``(b) Right To Limit Liability.--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.''


  Explanation of Taxpayers' Rights in Interviews With Internal Revenue 
                                 Service

    Pub. L. 105-206, title III, Sec. 3502, July 22, 1998, 112 Stat. 770, 
provided that: ``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], revise 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) to more clearly inform taxpayers of their rights--
        ``(1) to be represented at interviews with the Internal Revenue 
    Service by any person authorized to practice before the Internal 
    Revenue Service; and
        ``(2) to suspend an interview pursuant to section 7521(b)(2) of 
    the Internal Revenue Code of 1986.''


            Disclosure of Criteria for Examination Selection

    Pub. L. 105-206, title III, Sec. 3503, July 22, 1998, 112 Stat. 771, 
provided that:
    ``(a) In General.--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.
    ``(b) Transmission to Committees of Congress.--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.''


                         Disclosure to Taxpayers

    Pub. L. 105-206, title III, Sec. 3508, July 22, 1998, 112 Stat. 772, 
provided that: ``The Secretary of the Treasury or the Secretary's 
delegate shall ensure that any instructions booklet accompanying an 
individual Federal income tax return form (including forms 1040, 1040A, 
1040EZ, and any similar or successor forms) shall include, in clear 
language, in conspicuous print, and in a conspicuous place, a concise 
description of the conditions under which return information may be 
disclosed to any party outside the Internal Revenue Service, including 
disclosure to any State or agency, body, or commission (or legal 
representative) thereof.''


               Internal Revenue Service Employee Contacts

    Pub. L. 105-206, title III, Sec. 3705, July 22, 1998, 112 Stat. 777, 
provided that:
    ``(a) Notice.--The Secretary of the Treasury or the Secretary's 
delegate shall provide that--
        ``(1) 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;
        ``(2) 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
        ``(3) an Internal Revenue Service employee shall give a taxpayer 
    during a telephone or personal contact the employee's name and 
    unique identifying number.
    ``(b) Single Contact.--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.
    ``(c) Telephone Helpline in Spanish.--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.
    ``(d) Other Telephone Helpline Options.--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.
    ``(e) Effective Dates.--
        ``(1) In general.--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].
        ``(2) Subsection (c).--Subsection (c) shall take effect on 
    January 1, 2000.
        ``(3) Subsection (d).--Subsection (d) shall take effect on 
    January 1, 2000.
        ``(4) Unique identifying number.--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].''


    Listing of Local Internal Revenue Service Telephone Numbers and 
                                Addresses

    Pub. L. 105-206, title III, Sec. 3709, July 22, 1998, 112 Stat. 779, 
provided that: ``The Secretary of the Treasury or the Secretary's 
delegate shall, as soon as practicable, provide that the local telephone 
numbers and addresses of Internal Revenue Service offices located in any 
particular area be listed in a telephone book for that area.''


     Study of Noncompliance With Internal Revenue Laws by Taxpayers

    Pub. L. 105-206, title III, Sec. 3803, July 22, 1998, 112 Stat. 783, 
provided that: ``Not later than 1 year after the date of the enactment 
of this Act [July 22, 1998], the Secretary of the Treasury and the 
Commissioner of Internal Revenue shall jointly conduct a study, in 
consultation with the Joint Committee on Taxation, of the noncompliance 
with internal revenue laws by taxpayers (including willful noncompliance 
and noncompliance due to tax law complexity or other factors) and report 
the findings of such study to Congress.''


             Tax Law Complexity Analysis; Commissioner Study

    Pub. L. 105-206, title IV, Sec. 4022(a), July 22, 1998, 112 Stat. 
785, provided that:
    ``(1) In general.--The Commissioner of Internal Revenue shall 
conduct each year after 1998 an analysis of the sources of complexity in 
administration of the Federal tax laws. Such analysis may include an 
analysis of--
        ``(A) questions frequently asked by taxpayers with respect to 
    return filing;
        ``(B) common errors made by taxpayers in filling out their 
    returns;
        ``(C) areas of law which frequently result in disagreements 
    between taxpayers and the Internal Revenue Service;
        ``(D) major areas of law in which there is no (or incomplete) 
    published guidance or in which the law is uncertain;
        ``(E) areas in which revenue officers make frequent errors 
    interpreting or applying the law;
        ``(F) the impact of recent legislation on complexity; and
        ``(G) 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.
    ``(2) Report.--The Commissioner shall not later than March 1 of each 
year report the results of the analysis conducted under paragraph (1) 
for the preceding year to the Committee on Ways and Means of the House 
of Representatives and the Committee on Finance of the Senate. The 
report shall include any recommendations--
        ``(A) for reducing the complexity of the administration of 
    Federal tax laws; and
        ``(B) for repeal or modification of any provision the 
    Commissioner believes adds undue and unnecessary complexity to the 
    administration of the Federal tax laws.''


      National Commission on Restructuring Internal Revenue Service

    Pub. L. 104-52, title VI, Sec. 637, Nov. 19, 1995, 109 Stat. 509, as 
amended by Pub. L. 104-134, title II, Sec. 2904(a), Apr. 26, 1996, 110 
Stat. 1321-333; Pub. L. 104-208, div. A, title I, Sec. 101(f) [title VI, 
Sec. 643(a)-(e)], Sept. 30, 1996, 110 Stat. 3009-314, 3009-365, provided 
that:
    ``(a) Findings.--The Congress finds the following:
        ``(1) 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.
        ``(2) 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'.
        ``(3) 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.
        ``(4) 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.
        ``(5) This lack of efficiency reduces the level of customer 
    service and impedes the ability of the IRS to collect revenue.
        ``(6) 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.
    ``(b) Composition of the Commission.--
        ``(1) Establishment.--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').
        ``(2) Composition.--The Commission shall be composed of 
    seventeen members, as follows:
            ``(A) 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.
            ``(B) Four members appointed by the Majority Leader of the 
        Senate, one from Members of the Senate and three from private 
        life.
            ``(C) Two members appointed by the Minority Leader of the 
        Senate, one from Members of the Senate and one from private 
        life.
            ``(D) Four members appointed by the Speaker of the House of 
        Representatives, one from Members of the House of 
        Representatives and three from private life.
            ``(E) 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.
        ``(3) Co-Chairs.--The Commission shall elect Co-Chairs from 
    among its members.
        ``(4) Meeting; quorum; vacancies.--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.
        ``(5) Appointment; initial meeting.--
            ``(A) Appointment.--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].
            ``(B) Initial meeting.--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.
    ``(c) Functions of Commission.--
        ``(1) In general.--The functions of the Commission shall be--
            ``(A) 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
            ``(B) to submit to the Congress a final report of the 
        results of the review, including recommendations for 
        restructuring the IRS.
        ``(2) Review.--The Commission shall review--
            ``(A) the present practices of the IRS, especially with 
        respect to--
                ``(i) its organizational structure;
                ``(ii) its paper processing and return processing 
            activities;
                ``(iii) its infrastructure; and
                ``(iv) the collection process;
            ``(B) requirements for improvement in the following areas:
                ``(i) making returns processing `paperless';
                ``(ii) modernizing IRS operations;
                ``(iii) improving the collections process without major 
            personnel increases or increased funding;
                ``(iv) improving taxpayer accounts management;
                ``(v) improving the accuracy of information requested by 
            taxpayers in order to file their returns; and
                ``(vi) changing the culture of the IRS to make the 
            organization more efficient, productive, and customer-
            oriented;
            ``(C) 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
            ``(D) whether the IRS could perform other collection, 
        information, and financial service functions of the Federal 
        Government.
    ``(d) Powers of the Commission.--
        ``(1) In general.--(A) The Commission or, on the authorization 
    of the Commission, any subcommittee or member thereof, may, for the 
    purpose of carrying out the provisions of this section--
            ``(i) hold such hearings and sit and act at such times and 
        places, take such testimony, receive such evidence, administer 
        such oaths, and
            ``(ii) 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.
        ``(B) 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.
        ``(2) Contracting.--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.
        ``(3) Information from federal agencies.--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.
        ``(4) Assistance from federal agencies.--(A) 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.
        ``(B) The Administrator of General Services shall provide to the 
    Commission on a nonreimbursable basis such administrative support 
    services as the Commission may request.
        ``(C) 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.
        ``(5) Postal services.--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.
        ``(6) Gifts.--The Commission may accept, use, and dispose of 
    gifts or donations of services or property in carrying out its 
    duties under this section.
    ``(e) Staff of the Commission.--
        ``(1) In general.--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.
        ``(2) Consultant services.--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.
    ``(f) Compensation and Travel Expenses.--
        ``(1) Compensation.--(A) 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.
        ``(B) 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.
        ``(2) Travel expenses.--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.
    ``(g) Final Report of Commission; Termination.--
        ``(1) Final report.--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).
        ``(2) Termination.--(A) 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).
        ``(B) 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.
    ``(h) Authorization of Appropriations.--Such sums as may be 
necessary are authorized to be appropriated for the activities of the 
Commission.
    ``(i) Appropriations.--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.''
    [Pub. L. 104-208, div. A, title I, Sec. 101(f) [title VI, 
Sec. 643(f)], Sept. 30, 1996, 110 Stat. 3009-314, 3009-366, provided 
that: ``The amendments made by this section [amending section 637 of 
Pub. L. 104-52, set out above] shall take effect as if included in the 
provisions of the Treasury, Postal Service, and General Government 
Appropriations Act, 1996 [Pub. L. 104-52].'']
    [Pub. L. 104-134, title II, Sec. 2904(b), Apr. 26, 1996, 110 Stat. 
1321-333, provided that: ``The amendments made by this section [amending 
section 637 of Pub. L. 104-52, set out above] shall take effect as if 
included in the provisions of the Treasury, Postal Service, and General 
Government Appropriations Act, 1996 [Pub. L. 104-52].'']


                       Fees for Services Rendered

    Pub. L. 103-329, title I, Sec. 3, Sept. 30, 1994, 108 Stat. 2388, as 
amended by Pub. L. 104-19, title I, July 27, 1995, 109 Stat. 227, 
provided that: ``The Secretary of the Treasury may establish new fees or 
raise existing fees for services provided by the Internal Revenue 
Service to increase receipts, where such fees are authorized by another 
law. The Secretary of the Treasury may spend the new or increased fee 
receipts to supplement appropriations made available to the Internal 
Revenue Service appropriations accounts in fiscal years 1995 and 
thereafter: Provided, That the Secretary shall base such fees on the 
costs of providing specified services to persons paying such fees: 
Provided further, That the Secretary shall provide quarterly reports to 
the Congress on the collection of such fees and how they are being 
expended by the Service: Provided further, That the total expenditures 
from such fees shall not exceed $119,000,000 annually.''


                    Disclosure of Rights of Taxpayers

    Pub. L. 100-647, title VI, Sec. 6227, Nov. 10, 1988, 102 Stat. 3731, 
provided that:
    ``(a) In General.--The Secretary of the Treasury shall, as soon as 
practicable, but not later than 180 days after the date of the enactment 
of this Act [Nov. 10, 1988], prepare a statement which sets forth in 
simple and nontechnical terms--
        ``(1) 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;
        ``(2) the procedures by which a taxpayer may appeal any adverse 
    decision of the Service (including administrative and judicial 
    appeals);
        ``(3) the procedures for prosecuting refund claims and filing of 
    taxpayer complaints; and
        ``(4) the procedures which the Service may use in enforcing the 
    internal revenue laws (including assessment, jeopardy assessment, 
    levy and distraint, and enforcement of liens).
    ``(b) Transmission to Committees of Congress.--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.
    ``(c) Distribution.--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.''

         Designation of Officers To Act as Secretary of Treasury

    Designation of officers of Treasury Department to act as Secretary 
of Treasury, during any period when, by reason of absence, disability, 
or vacancy in office, either the Secretary of Treasury or his Deputy 
Secretary is not available to exercise the powers or perform the duties 
of the office of the Secretary, see Ex. Ord. No. 11822, Dec. 10, 1974, 
39 F.R. 43275, set out as a note under section 3345 of Title 5, 
Government Organization and Employees.


    Fees for Requests for Ruling, Determination, and Similar Letters

    Pub. L. 100-203, title X, Sec. 10511, Dec. 22, 1987, 101 Stat. 1330-
446, as amended by Pub. L. 101-508, title XI, Sec. 11319(a), Nov. 5, 
1990, 104 Stat. 1388-460; Pub. L. 103-465, title VII, Sec. 743, Dec. 8, 
1994, 108 Stat. 5011; Pub. L. 104-117, Sec. 2, Mar. 20, 1996, 110 Stat. 
828, provided that:
    ``(a) General Rule.--The Secretary of the Treasury or his delegate 
(hereinafter in this section referred to as the `Secretary') shall 
establish a program requiring the payment of user fees for requests to 
the Internal Revenue Service for ruling letters, opinion letters, and 
determination letters and for similar requests.
    ``(b) Program Criteria.--
        ``(1) In general.--The fees charged under the program required 
    by subsection (a)--
            ``(A) shall vary according to categories (or subcategories) 
        established by the Secretary,
            ``(B) shall be determined after taking into account the 
        average time for (and difficulty of) complying with requests in 
        each category (and subcategory), and
            ``(C) shall be payable in advance.
        ``(2) Exemptions, etc.--The Secretary shall provide for such 
    exemptions (and reduced fees) under such program as he determines to 
    be appropriate.
        ``(3) Average fee requirement.--The average fee charged under 
    the program required by subsection (a) shall not be less than the 
    amount determined under the following table:

  ``Category                                                 Average Fee
            Employee plan ruling and opinion....                 $250   
            Exempt organization ruling..........                 $350   
            Employee plan determination.........                 $300   
            Exempt organization determination...                 $275   
            Chief counsel ruling................                 $200.  

    ``(c) Application of Section.--Subsection (a) shall apply with 
respect to requests made on or after the 1st day of the second calendar 
month beginning after the date of the enactment of this Act [Dec. 22, 
1987] and before September 30, 1990. Subsection (a) shall also apply 
with respect to requests made after September 30, 1990, and before 
October 1, 2003.''
    [Section 11319(b) of Pub. L. 101-508 provided that: ``The amendment 
made by this section [amending section 10511 of Pub. L. 100-203 set out 
above] shall take effect on September 29, 1990, except that no advance 
payment shall be required for any fee for any requests filed after 
September 29, 1990, and before the 30th day after the date of the 
enactment of this Act [Nov. 5, 1990].'']


Study of Tax Incentives for Expenditures Required by Occupational Safety 
  and Health Administration and Mining Health and Safety Administration

    Pub. L. 95-600, title V, Sec. 552, Nov. 6, 1978, 92 Stat. 2891, 
authorized the Secretary of the Treasury to conduct an investigation 
into the appropriateness of providing additional tax incentives for 
expenditures required by the Occupational Safety and Health Act, section 
651 et seq. of Title 29, Labor, and the Mining Safety and Health 
Administration of the Department of Labor and to submit a report on such 
investigation to Congress before Apr. 1, 1979, together with any 
legislative recommendations.


 Study of Taxation of Nonresident Alien Real Estate Transactions in the 
                              United States

    Pub. L. 95-600, title V, Sec. 553, Nov. 6, 1978, 92 Stat. 2891, 
authorized the Secretary of the Treasury to make a study of the 
appropriate tax treatment to be given to income derived from, or gain 
realized on, the sale of interests in United States property held by 
nonresident aliens or foreign corporations and to submit a report on 
such study to Congress no later than six months from Nov. 6, 1978, 
together with any recommendations.


Study and Investigation of Internal Revenue Code Provisions Which Impede 
   or Discourage Recycling of Solid Waste Materials; Presidential and 
                          Congressional Report

    Pub. L. 94-568, Sec. 4, Oct. 20, 1976, 90 Stat. 2698, provided that 
the Secretary of the Treasury, in cooperation with the Administrator of 
the Environmental Protection Agency, make a complete study of all 
provisions of the Internal Revenue Code of 1954 which impeded or 
discouraged the recycling of solid waste materials and to report to the 
President and Congress, not later than Apr. 20, 1977, his findings, 
together with specific legislative proposals designed to increase and 
encourage the recycling of solid waste materials and detailed revenue 
cost estimates.

      Ex. Ord. No. 13051. Internal Revenue Service Management Board

    Ex. Ord. No. 13051, June 24, 1997, 62 F.R. 34609, provided:
    By the authority vested in me as President by the Constitution and 
the laws of the United States of America, including 31 U.S.C. 301 and 26 
U.S.C. 7801(a), and in order to establish a permanent oversight board to 
assist the Secretary of the Treasury (``Secretary'') in ensuring 
effective management of the Internal Revenue Service, it is hereby 
ordered as follows:
    Section 1. Establishment. (a) There is hereby established within the 
Department of the Treasury the Internal Revenue Service Management Board 
(``Board'').
    (b) The Board shall consist of:
        (1) the Deputy Secretary of the Treasury, who shall serve as 
    Chair of the Board;
        (2) the Assistant Secretary of the Treasury (Management) and the 
    Chief Financial Officer, who shall serve as Vice Chairs;
        (3) the Assistant Secretary of the Treasury (Tax Policy);
        (4) the Under Secretary of the Treasury (Enforcement);
        (5) the Deputy Assistant Secretary of the Treasury (Departmental 
    Finance and Management);
        (6) the Deputy Assistant Secretary of the Treasury (Information 
    Systems)/Chief Information Officer;
        (7) the Assistant Secretary of the Treasury (Legislative Affairs 
    and Public Liaison);
        (8) the General Counsel for the Department of the Treasury;
        (9) the Director, Office of Security, Department of the 
    Treasury;
        (10) the Senior Procurement Executive for the Department of the 
    Treasury;
        (11) the Commissioner of Internal Revenue;
        (12) the Deputy Commissioner of Internal Revenue;
        (13) the Associate Commissioner of Internal Revenue for 
    Modernization/Chief Information Officer of the Internal Revenue 
    Service;
        (14) the Deputy Director for Management, Office of Management 
    and Budget;
        (15) the Administrator for Federal Procurement Policy, Office of 
    Management and Budget;
        (16) a representative of the Office of the Vice President 
    designated by the Vice President;
        (17) a representative of the Office of Management and Budget 
    designated by the Director of such office;
        (18) a representative of the Office of Personnel Management 
    designated by the Director of such office;
        (19) representatives of such other Government agencies as may be 
    determined from time to time by the Secretary of the Treasury, 
    designated by the head of such agency; and
        (20) such other officers or employees of the Department of the 
    Treasury as may be designated by the Secretary.
    (c) A member of the Board described in paragraphs (16) through (20) 
of subsection (b) may be removed by the official who designated such 
member.
    (d) The Board may seek the views, consistent with 18 U.S.C. 205, of 
Internal Revenue Service employee representatives on matters considered 
by the Board under section 3 of this order.
    Sec. 2. Structure. There shall be an Executive Committee of the full 
Board, the members of which shall be appointed by the Secretary.
    Sec. 3. Functions. (a) The Board shall directly support the 
Secretary's oversight of the management and operation of the Internal 
Revenue Service. This includes:
    (1) working through the Deputy Secretary, assisting the Secretary on 
the full range of high-level management issues and concerns affecting 
the Internal Revenue Service, particularly those that have a significant 
impact on operations, modernization, and customer service.
    (2) acting through the Executive Committee, serving as the primary 
review for strategic decisions concerning modernization of the Internal 
Revenue Service, including modernization direction, strategy, 
significant reorganization plans, performance metrics, budgetary issues, 
major capital investments, and compensation of personnel.
    (b) The Board shall meet at least monthly and shall prescribe such 
bylaws or procedures as the Board deems appropriate.
    (c) The Board shall prepare semiannual reports to the President and 
to the Congress, which shall be transmitted by the Secretary of the 
Treasury.
    Sec. 4. Administration. To the extent permitted by law and subject 
to the availability of appropriations, the Secretary shall provide the 
Board administrative services, facilities, staff, and such other 
financial support services as may be necessary for the performance of 
its functions under this order.
    Sec. 5. Judicial Review. This order is intended only to improve the 
internal management of the Internal Revenue Service and is not intended, 
and shall not be construed, to create any right or benefit, substantive 
or procedural, enforceable at law by a party against the United States, 
its agencies, its officers, or its employees.
                                                     William J. Clinton.
