
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 106-554 Section 1(a)(7)]
[CITE: 26USC7802]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                Subtitle F--Procedure and Administration
 
                        CHAPTER 80--GENERAL RULES
 
           Subchapter A--Application of Internal Revenue Laws
 
Sec. 7802. Internal Revenue Service Oversight Board


(a) Establishment

    There is established within the Department of the Treasury the 
Internal Revenue Service Oversight Board (hereafter in this subchapter 
referred to as the ``Oversight Board'').

(b) Membership

                           (1) Composition

        The Oversight Board shall be composed of nine members, as 
    follows:
            (A) six members shall be individuals who are not otherwise 
        Federal officers or employees and who are appointed by the 
        President, by and with the advice and consent of the Senate.
            (B) one member shall be the Secretary of the Treasury or, if 
        the Secretary so designates, the Deputy Secretary of the 
        Treasury.
            (C) one member shall be the Commissioner of Internal 
        Revenue.
            (D) one member shall be an individual who is a full-time 
        Federal employee or a representative of employees and who is 
        appointed by the President, by and with the advice and consent 
        of the Senate.

                    (2) Qualifications and terms

        (A) Qualifications

            Members of the Oversight Board described in paragraph (1)(A) 
        shall be appointed without regard to political affiliation and 
        solely on the basis of their professional experience and 
        expertise in one or more of the following areas:
                (i) Management of large service organizations.
                (ii) Customer service.
                (iii) Federal tax laws, including tax administration and 
            compliance.
                (iv) Information technology.
                (v) Organization development.
                (vi) The needs and concerns of taxpayers.
                (vii) The needs and concerns of small businesses.

        In the aggregate, the members of the Oversight Board described 
        in paragraph (1)(A) should collectively bring to bear expertise 
        in all of the areas described in the preceding sentence.

        (B) Terms

            Each member who is described in subparagraph (A) or (D) of 
        paragraph (1) shall be appointed for a term of 5 years, except 
        that of the members first appointed under paragraph (1)(A)--
                (i) two members shall be appointed for a term of 3 
            years,
                (ii) two members shall be appointed for a term of 4 
            years, and
                (iii) two members shall be appointed for a term of 5 
            years.

        (C) Reappointment

            An individual who is described in subparagraph (A) or (D) of 
        paragraph (1) may be appointed to no more than two 5-year terms 
        on the Oversight Board.

        (D) Vacancy

            Any vacancy on the Oversight Board shall be filled in the 
        same manner as the original appointment. Any member appointed to 
        fill a vacancy occurring before the expiration of the term for 
        which the member's predecessor was appointed shall be appointed 
        for the remainder of that term.

                     (3) Ethical considerations

        (A) Financial disclosure

            During the entire period that an individual appointed under 
        subparagraph (A) or (D) of paragraph (1) is a member of the 
        Oversight Board, such individual shall be treated as serving as 
        an officer or employee referred to in section 101(f) of the 
        Ethics in Government Act of 1978 for purposes of title I of such 
        Act, except that section 101(d) of such Act shall apply without 
        regard to the number of days of service in the position.

        (B) Restrictions on post-employment

            For purposes of section 207(c) of title 18, United States 
        Code, an individual appointed under subparagraph (A) or (D) of 
        paragraph (1) shall be treated as an employee referred to in 
        section 207(c)(2)(A)(i) of such title during the entire period 
        the individual is a member of the Board, except that subsections 
        (c)(2)(B) and (f) of section 207 of such title shall not apply.

        (C) Members who are special Government employees

            If an individual appointed under subparagraph (A) or (D) of 
        paragraph (1) is a special Government employee, the following 
        additional rules apply for purposes of chapter 11 of title 18, 
        United States Code:
            (i) Restriction on representation

                In addition to any restriction under section 205(c) of 
            title 18, United States Code, except as provided in 
            subsections (d) through (i) of section 205 of such title, 
            such individual (except in the proper discharge of official 
            duties) shall not, with or without compensation, represent 
            anyone to or before any officer or employee of--
                    (I) the Oversight Board or the Internal Revenue 
                Service on any matter;
                    (II) the Department of the Treasury on any matter 
                involving the internal revenue laws or involving the 
                management or operations of the Internal Revenue 
                Service; or
                    (III) the Department of Justice with respect to 
                litigation involving a matter described in subclause (I) 
                or (II).
            (ii) Compensation for services provided by another

                For purposes of section 203 of such title--
                    (I) such individual shall not be subject to the 
                restrictions of subsection (a)(1) thereof for sharing in 
                compensation earned by another for representations on 
                matters covered by such section, and
                    (II) a person shall not be subject to the 
                restrictions of subsection (a)(2) thereof for sharing 
                such compensation with such individual.

        (D) Waiver

            The President may, only at the time the President nominates 
        the member of the Oversight Board described in paragraph (1)(D), 
        waive for the term of the member any appropriate provision of 
        chapter 11 of title 18, United States Code, to the extent such 
        waiver is necessary to allow such member to participate in the 
        decisions of the Board while continuing to serve as a full-time 
        Federal employee or a representative of employees. Any such 
        waiver shall not be effective unless a written intent of waiver 
        to exempt such member (and actual waiver language) is submitted 
        to the Senate with the nomination of such member.

                             (4) Quorum

        Five members of the Oversight Board shall constitute a quorum. A 
    majority of members present and voting shall be required for the 
    Oversight Board to take action.

                             (5) Removal

        (A) In general

            Any member of the Oversight Board appointed under 
        subparagraph (A) or (D) of paragraph (1) may be removed at the 
        will of the President.

        (B) Secretary and Commissioner

            An individual described in subparagraph (B) or (C) of 
        paragraph (1) shall be removed upon termination of service in 
        the office described in such subparagraph.

                             (6) Claims

        (A) In general

            Members of the Oversight Board who are described in 
        subparagraph (A) or (D) of paragraph (1) shall have no personal 
        liability under Federal law with respect to any claim arising 
        out of or resulting from an act or omission by such member 
        within the scope of service as a member.

        (B) Effect on other law

            This paragraph shall not be construed--
                (i) to affect any other immunities and protections that 
            may be available to such member under applicable law with 
            respect to such transactions;
                (ii) to affect any other right or remedy against the 
            United States under applicable law; or
                (iii) to limit or alter in any way the immunities that 
            are available under applicable law for Federal officers and 
            employees.

(c) General responsibilities

                            (1) Oversight

        (A) In general

            The Oversight Board shall oversee the Internal Revenue 
        Service in its administration, management, conduct, direction, 
        and supervision of the execution and application of the internal 
        revenue laws or related statutes and tax conventions to which 
        the United States is a party.

        (B) Mission of IRS

            As part of its oversight functions described in subparagraph 
        (A), the Oversight Board shall ensure that the organization and 
        operation of the Internal Revenue Service allows it to carry out 
        its mission.

        (C) Confidentiality

            The Oversight Board shall ensure that appropriate 
        confidentiality is maintained in the exercise of its duties.

                           (2) Exceptions

        The Oversight Board shall have no responsibilities or authority 
    with respect to--
            (A) the development and formulation of Federal tax policy 
        relating to existing or proposed internal revenue laws, related 
        statutes, and tax conventions,
            (B) specific law enforcement activities of the Internal 
        Revenue Service, including specific compliance activities such 
        as examinations, collection activities, and criminal 
        investigations,
            (C) specific procurement activities of the Internal Revenue 
        Service, or
            (D) except as provided in subsection (d)(3), specific 
        personnel actions.

(d) Specific responsibilities

    The Oversight Board shall have the following specific 
responsibilities:

                         (1) Strategic plans

        To review and approve strategic plans of the Internal Revenue 
    Service, including the establishment of--
            (A) mission and objectives, and standards of performance 
        relative to either, and
            (B) annual and long-range strategic plans.

                        (2) Operational plans

        To review the operational functions of the Internal Revenue 
    Service, including--
            (A) plans for modernization of the tax system,
            (B) plans for outsourcing or managed competition, and
            (C) plans for training and education.

                           (3) Management

        To--
            (A) recommend to the President candidates for appointment as 
        the Commissioner of Internal Revenue and recommend to the 
        President the removal of the Commissioner;
            (B) review the Commissioner's selection, evaluation, and 
        compensation of Internal Revenue Service senior executives who 
        have program management responsibility over significant 
        functions of the Internal Revenue Service; and
            (C) review and approve the Commissioner's plans for any 
        major reorganization of the Internal Revenue Service.

                             (4) Budget

        To--
            (A) review and approve the budget request of the Internal 
        Revenue Service prepared by the Commissioner;
            (B) submit such budget request to the Secretary of the 
        Treasury; and
            (C) ensure that the budget request supports the annual and 
        long-range strategic plans.

                       (5) Taxpayer protection

        To ensure the proper treatment of taxpayers by the employees of 
    the Internal Revenue Service.

The Secretary shall submit the budget request referred to in paragraph 
(4)(B) for any fiscal year to the President who shall submit such 
request, without revision, to Congress together with the President's 
annual budget request for the Internal Revenue Service for such fiscal 
year.

(e) Board personnel matters

                     (1) Compensation of members

        (A) In general

            Each member of the Oversight Board who--
                (i) is described in subsection (b)(1)(A); or
                (ii) is described in subsection (b)(1)(D) and is not 
            otherwise a Federal officer or employee,

        shall be compensated at a rate of $30,000 per year. All other 
        members shall serve without compensation for such service.

        (B) Chairperson

            In lieu of the amount specified in subparagraph (A), the 
        Chairperson of the Oversight Board shall be compensated at a 
        rate of $50,000 per year.

                         (2) Travel expenses

        (A) In general

            The members of the Oversight Board shall be allowed travel 
        expenses, including per diem in lieu of subsistence, at rates 
        authorized for employees of agencies under subchapter I of 
        chapter 57 of title 5, United States Code, to attend meetings of 
        the Oversight Board and, with the advance approval of the 
        Chairperson of the Oversight Board, while otherwise away from 
        their homes or regular places of business for purposes of duties 
        as a member of the Oversight Board.

        (B) Report

            The Oversight Board shall include in its annual report under 
        subsection (f)(3)(A) information with respect to the travel 
        expenses allowed for members of the Oversight Board under this 
        paragraph.

                              (3) Staff

        (A) In general

            The Chairperson of the Oversight Board may appoint and 
        terminate any personnel that may be necessary to enable the 
        Board to perform its duties.

        (B) Detail of Government employees

            Upon request of the Chairperson of the Oversight Board, a 
        Federal agency shall detail a Federal Government employee to the 
        Oversight Board without reimbursement. Such detail shall be 
        without interruption or loss of civil service status or 
        privilege.

       (4) Procurement of temporary and intermittent services

        The Chairperson of the Oversight Board may procure temporary and 
    intermittent services under section 3109(b) of title 5, United 
    States Code.

(f) Administrative matters

                              (1) Chair

        (A) Term

            The members of the Oversight Board shall elect for a 2-year 
        term a chairperson from among the members appointed under 
        subsection (b)(1)(A).

        (B) Powers

            Except as otherwise provided by a majority vote of the 
        Oversight Board, the powers of the Chairperson shall include--
                (i) establishing committees;
                (ii) setting meeting places and times;
                (iii) establishing meeting agendas; and
                (iv) developing rules for the conduct of business.

                            (2) Meetings

        The Oversight Board shall meet at least quarterly and at such 
    other times as the Chairperson determines appropriate.

                             (3) Reports

        (A) Annual

            The Oversight Board shall each year report with respect to 
        the conduct of its responsibilities under this title to the 
        President, the Committees on Ways and Means, Government Reform 
        and Oversight, and Appropriations of the House of 
        Representatives and the Committees on Finance, Governmental 
        Affairs, and Appropriations of the Senate.

        (B) Additional report

            Upon a determination by the Oversight Board under subsection 
        (c)(1)(B) that the organization and operation of the Internal 
        Revenue Service are not allowing it to carry out its mission, 
        the Oversight Board shall report such determination to the 
        Committee on Ways and Means of the House of Representatives and 
        the Committee on Finance of the Senate.

(Aug. 16, 1954, ch. 736, 68A Stat. 915; Pub. L. 93-406, title II, 
Sec. 1051(a), Sept. 2, 1974, 88 Stat. 951; Pub. L. 94-455, title XIX, 
Sec. 1906(b)(13)(A), (B), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 97-258, 
Sec. 2(f)(2), Sept. 13, 1982, 96 Stat. 1059; Pub. L. 100-647, title VI, 
Sec. 6235(a), Nov. 10, 1988, 102 Stat. 3737; Pub. L. 104-168, title I, 
Sec. 101(a), (b)(2), July 30, 1996, 110 Stat. 1453, 1455; Pub. L. 105-
206, title I, Sec. 1101(a), July 22, 1998, 112 Stat. 691; Pub. L. 106-
554, Sec. 1(a)(7) [title III, Sec. 319(27)], Dec. 21, 2000, 114 Stat. 
2763, 2763A-648.)

                       References in Text

    The Ethics in Government Act of 1978, referred to in subsec. 
(b)(3)(A), is Pub. L. 95-521, Oct. 26, 1978, 92 Stat. 1824, as amended. 
Title I of the Act is set out in the Appendix to Title 5, Government 
Organization and Employees. For complete classification of this Act to 
the Code, see Short Title note set out under section 101 of Pub. L. 95-
521 in the Appendix to Title 5 and Tables.


                               Amendments

    2000--Subsec. (b)(2)(B)(ii). Pub. L. 106-554 substituted a comma for 
semicolon before ``and''.
    1998--Pub. L. 105-206 amended section catchline and text of section 
generally, substituting present provisions for provisions which: in 
subsec. (a), declared that there shall be in the Department of the 
Treasury a Commissioner of Internal Revenue, appointed by the President, 
with such duties and powers as prescribed by Secretary of the Treasury; 
in subsec. (b), established Office of Employee Plans and Exempt 
Organizations to carry out functions with respect to organizations 
exempt from tax and with respect to plans to which part I of subchapter 
D of chapter 1 applied; in subsec. (c), established Office for Taxpayer 
Services such as telephone, walk-in, and taxpayer educational services, 
and design and production of forms; and in subsec. (d), established 
Office of Taxpayer Advocate and set forth functions of Office and 
responsibilities of Commissioner regarding response to recommendations 
of Office. See section 7803 of this title.
    1996--Pub. L. 104-168, Sec. 101(b)(2), substituted ``Commissioners; 
Taxpayer Advocate.'' for ``Commissioner (Employee Plans and Exempt 
Organizations)'' in section catchline.
    Subsec. (d). Pub. L. 104-168, Sec. 101(a), added subsec. (d).
    1988--Subsec. (c). Pub. L. 100-647 added subsec. (c).
    1982--Subsec. (b). Pub. L. 97-258 redesignated existing provisions 
as par. (1), added par. (1) heading, and added par. (2). Par. (2) is 
based on provisions that appeared in section 1037 of former Title 31, 
Money and Finance, prior to enactment of Title 31 by Pub. L. 97-258.
    1976--Subsec. (a). Pub. L. 94-455, Sec. 1906(b)(13)(B), substituted 
``Secretary of the Treasury'' for ``Secretary'' after ``prescribed by 
the''.
    Subsec. (b). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out ``or 
his delegate'' after ``Secretary''.
    1974--Pub. L. 93-406 designated existing provisions as subsec. (a) 
and added subsec. (b).

                         Change of Name

    Committee on Government Reform and Oversight of House of 
Representatives changed to Committee on Government Reform of House of 
Representatives by House Resolution No. 5, One Hundred Sixth Congress, 
Jan. 6, 1999.


                    Effective Date of 1998 Amendment

    Pub. L. 105-206, title I, Sec. 1101(d), July 22, 1998, 112 Stat. 
697, provided that:
    ``(1) In general.--The amendments made by this section [amending 
this section and sections 4946 and 6103 of this title] shall take effect 
on the date of the enactment of this Act [July 22, 1998].
    ``(2) Initial nominations to internal revenue service oversight 
board.--The President shall submit the initial nominations under section 
7802 of the Internal Revenue Code of 1986, as added by this section, to 
the Senate not later than 6 months after the date of the enactment of 
this Act [July 22, 1998].
    ``(3) Effect on actions prior to appointment of oversight board.--
Nothing in this section shall be construed to invalidate the actions and 
authority of the Internal Revenue Service prior to the appointment of 
the members of the Internal Revenue Service Oversight Board.''


                    Effective Date of 1996 Amendment

    Section 101(c) of Pub. L. 104-168 provided that: ``The amendments 
made by this section [amending this section and section 7811 of this 
title] shall take effect on the date of the enactment of this Act [July 
30, 1996].''


                    Effective Date of 1988 Amendment

    Section 6235(c) of Pub. L. 100-647 provided that: ``The amendment 
made by subsection (a) [amending this section] shall take effect on the 
date 180 days after the date of the enactment of this Act [Nov. 10, 
1988].''


                    Effective Date of 1974 Amendment

    Section 1051(d) of Pub. L. 93-406 provided that: ``The amendments 
made by this section [amending this section and sections 5108 and 5109 
of Title 5, Government Organization and Employees] shall take effect on 
the 90th day after the date of the enactment of this Act [Sept. 2, 
1974].''

                  Section Referred to in Other Sections

    This section is referred to in sections 6103, 7803 of this title.
