
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC7803]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                Subtitle F--Procedure and Administration
 
                        CHAPTER 80--GENERAL RULES
 
           Subchapter A--Application of Internal Revenue Laws
 
Sec. 7803. Commissioner of Internal Revenue; other officials


(a) Commissioner of Internal Revenue

                           (1) Appointment

        (A) In general

            There shall be in the Department of the Treasury a 
        Commissioner of Internal Revenue who shall be appointed by the 
        President, by and with the advice and consent of the Senate, to 
        a 5-year term. Such appointment shall be made from individuals 
        who, among other qualifications, have a demonstrated ability in 
        management.

        (B) Vacancy

            Any individual appointed to fill a vacancy in the position 
        of Commissioner occurring before the expiration of the term for 
        which such individual's predecessor was appointed shall be 
        appointed only for the remainder of that term.

        (C) Removal

            The Commissioner may be removed at the will of the 
        President.

        (D) Reappointment

            The Commissioner may be appointed to more than one 5-year 
        term.

                             (2) Duties

        The Commissioner shall have such duties and powers as the 
    Secretary may prescribe, including the power to--
            (A) administer, manage, conduct, direct, and supervise the 
        execution and application of the internal revenue laws or 
        related statutes and tax conventions to which the United States 
        is a party; and
            (B) recommend to the President a candidate for appointment 
        as Chief Counsel for the Internal Revenue Service when a vacancy 
        occurs, and recommend to the President the removal of such Chief 
        Counsel.

    If the Secretary determines not to delegate a power specified in 
    subparagraph (A) or (B), such determination may not take effect 
    until 30 days after the Secretary notifies 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.

                     (3) Consultation with Board

        The Commissioner shall consult with the Oversight Board on all 
    matters set forth in paragraphs (2) and (3) (other than paragraph 
    (3)(A)) of section 7802(d).

(b) Chief Counsel for the Internal Revenue Service

                           (1) Appointment

        There shall be in the Department of the Treasury a Chief Counsel 
    for the Internal Revenue Service who shall be appointed by the 
    President, by and with the consent of the Senate.

                             (2) Duties

        The Chief Counsel shall be the chief law officer for the 
    Internal Revenue Service and shall perform such duties as may be 
    prescribed by the Secretary, including the duty--
            (A) to be legal advisor to the Commissioner and the 
        Commissioner's officers and employees;
            (B) to furnish legal opinions for the preparation and review 
        of rulings and memoranda of technical advice;
            (C) to prepare, review, and assist in the preparation of 
        proposed legislation, treaties, regulations, and Executive 
        orders relating to laws which affect the Internal Revenue 
        Service;
            (D) to represent the Commissioner in cases before the Tax 
        Court; and
            (E) to determine which civil actions should be litigated 
        under the laws relating to the Internal Revenue Service and 
        prepare recommendations for the Department of Justice regarding 
        the commencement of such actions.

    If the Secretary determines not to delegate a power specified in 
    subparagraph (A), (B), (C), (D), or (E), such determination may not 
    take effect until 30 days after the Secretary notifies 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.

              (3) Persons to whom Chief Counsel reports

        The Chief Counsel shall report directly to the Commissioner of 
    Internal Revenue, except that--
            (A) the Chief Counsel shall report to both the Commissioner 
        and the General Counsel for the Department of the Treasury with 
        respect to--
                (i) legal advice or interpretation of the tax law not 
            relating solely to tax policy;
                (ii) tax litigation; and

            (B) the Chief Counsel shall report to the General Counsel 
        with respect to legal advice or interpretation of the tax law 
        relating solely to tax policy.

    If there is any disagreement between the Commissioner and the 
    General Counsel with respect to any matter jointly referred to them 
    under subparagraph (A), such matter shall be submitted to the 
    Secretary or Deputy Secretary for resolution.

                     (4) Chief Counsel personnel

        All personnel in the Office of Chief Counsel shall report to the 
    Chief Counsel.

(c) Office of the Taxpayer Advocate

                          (1) Establishment

        (A) In general

            There is established in the Internal Revenue Service an 
        office to be known as the ``Office of the Taxpayer Advocate''.

        (B) National Taxpayer Advocate

            (i) In general

                The Office of the Taxpayer Advocate shall be under the 
            supervision and direction of an official to be known as the 
            ``National Taxpayer Advocate''. The National Taxpayer 
            Advocate shall report directly to the Commissioner of 
            Internal Revenue and shall be entitled to compensation at 
            the same rate as the highest rate of basic pay established 
            for the Senior Executive Service under section 5382 of title 
            5, United States Code, or, if the Secretary of the Treasury 
            so determines, at a rate fixed under section 9503 of such 
            title.
            (ii) Appointment

                The National Taxpayer Advocate shall be appointed by the 
            Secretary of the Treasury after consultation with the 
            Commissioner of Internal Revenue and the Oversight Board and 
            without regard to the provisions of title 5, United States 
            Code, relating to appointments in the competitive service or 
            the Senior Executive Service.
            (iii) Qualifications

                An individual appointed under clause (ii) shall have--
                    (I) a background in customer service as well as tax 
                law; and
                    (II) experience in representing individual 
                taxpayers.
            (iv) Restriction on employment

                An individual may be appointed as the National Taxpayer 
            Advocate only if such individual was not an officer or 
            employee of the Internal Revenue Service during the 2-year 
            period ending with such appointment and such individual 
            agrees not to accept any employment with the Internal 
            Revenue Service for at least 5 years after ceasing to be the 
            National Taxpayer Advocate. Service as an officer or 
            employee of the Office of the Taxpayer Advocate shall not be 
            taken into account in applying this clause.

                       (2) Functions of office

        (A) In general

            It shall be the function of the Office of the Taxpayer 
        Advocate to--
                (i) assist taxpayers in resolving problems with the 
            Internal Revenue Service;
                (ii) identify areas in which taxpayers have problems in 
            dealings with the Internal Revenue Service;
                (iii) to the extent possible, propose changes in the 
            administrative practices of the Internal Revenue Service to 
            mitigate problems identified under clause (ii); and
                (iv) identify potential legislative changes which may be 
            appropriate to mitigate such problems.

        (B) Annual reports

            (i) Objectives

                Not later than June 30 of each calendar year, the 
            National Taxpayer Advocate shall report to the Committee on 
            Ways and Means of the House of Representatives and the 
            Committee on Finance of the Senate on the objectives of the 
            Office of the Taxpayer Advocate for the fiscal year 
            beginning in such calendar year. Any such report shall 
            contain full and substantive analysis, in addition to 
            statistical information.
            (ii) Activities

                Not later than December 31 of each calendar year, the 
            National Taxpayer Advocate shall report to the Committee on 
            Ways and Means of the House of Representatives and the 
            Committee on Finance of the Senate on the activities of the 
            Office of the Taxpayer Advocate during the fiscal year 
            ending during such calendar year. Any such report shall 
            contain full and substantive analysis, in addition to 
            statistical information, and shall--
                    (I) identify the initiatives the Office of the 
                Taxpayer Advocate has taken on improving taxpayer 
                services and Internal Revenue Service responsiveness;
                    (II) contain recommendations received from 
                individuals with the authority to issue Taxpayer 
                Assistance Orders under section 7811;
                    (III) contain a summary of at least 20 of the most 
                serious problems encountered by taxpayers, including a 
                description of the nature of such problems;
                    (IV) contain an inventory of the items described in 
                subclauses (I), (II), and (III) for which action has 
                been taken and the result of such action;
                    (V) contain an inventory of the items described in 
                subclauses (I), (II), and (III) for which action remains 
                to be completed and the period during which each item 
                has remained on such inventory;
                    (VI) contain an inventory of the items described in 
                subclauses (I), (II), and (III) for which no action has 
                been taken, the period during which each item has 
                remained on such inventory, the reasons for the 
                inaction, and identify any Internal Revenue Service 
                official who is responsible for such inaction;
                    (VII) identify any Taxpayer Assistance Order which 
                was not honored by the Internal Revenue Service in a 
                timely manner, as specified under section 7811(b);
                    (VIII) contain recommendations for such 
                administrative and legislative action as may be 
                appropriate to resolve problems encountered by 
                taxpayers;
                    (IX) identify areas of the tax law that impose 
                significant compliance burdens on taxpayers or the 
                Internal Revenue Service, including specific 
                recommendations for remedying these problems;
                    (X) identify the 10 most litigated issues for each 
                category of taxpayers, including recommendations for 
                mitigating such disputes; and
                    (XI) include such other information as the National 
                Taxpayer Advocate may deem advisable.
            (iii) Report to be submitted directly

                Each report required under this subparagraph shall be 
            provided directly to the committees described in clause (i) 
            without any prior review or comment from the Commissioner, 
            the Secretary of the Treasury, the Oversight Board, any 
            other officer or employee of the Department of the Treasury, 
            or the Office of Management and Budget.
            (iv) Coordination with report of Treasury Inspector 
                    General for Tax Administration

                To the extent that information required to be reported 
            under clause (ii) is also required to be reported under 
            paragraph (1) or (2) of subsection (d) by the Treasury 
            Inspector General for Tax Administration, the National 
            Taxpayer Advocate shall not contain such information in the 
            report submitted under such clause.

        (C) Other responsibilities

            The National Taxpayer Advocate shall--
                (i) monitor the coverage and geographic allocation of 
            local offices of taxpayer advocates;
                (ii) develop guidance to be distributed to all Internal 
            Revenue Service officers and employees outlining the 
            criteria for referral of taxpayer inquiries to local offices 
            of taxpayer advocates;
                (iii) ensure that the local telephone number for each 
            local office of the taxpayer advocate is published and 
            available to taxpayers served by the office; and
                (iv) in conjunction with the Commissioner, develop 
            career paths for local taxpayer advocates choosing to make a 
            career in the Office of the Taxpayer Advocate.

        (D) Personnel actions

            (i) In general

                The National Taxpayer Advocate shall have the 
            responsibility and authority to--
                    (I) appoint local taxpayer advocates and make 
                available at least 1 such advocate for each State; and
                    (II) evaluate and take personnel actions (including 
                dismissal) with respect to any employee of any local 
                office of a taxpayer advocate described in subclause 
                (I).
            (ii) Consultation

                The National Taxpayer Advocate may consult with the 
            appropriate supervisory personnel of the Internal Revenue 
            Service in carrying out the National Taxpayer Advocate's 
            responsibilities under this subparagraph.

                (3) Responsibilities of Commissioner

        The Commissioner shall establish procedures requiring a formal 
    response to all recommendations submitted to the Commissioner by the 
    National Taxpayer Advocate within 3 months after submission to the 
    Commissioner.

                   (4) Operation of local offices

        (A) In general

            Each local taxpayer advocate--
                (i) shall report to the National Taxpayer Advocate or 
            delegate thereof;
                (ii) may consult with the appropriate supervisory 
            personnel of the Internal Revenue Service regarding the 
            daily operation of the local office of the taxpayer 
            advocate;
                (iii) shall, at the initial meeting with any taxpayer 
            seeking the assistance of a local office of the taxpayer 
            advocate, notify such taxpayer that the taxpayer advocate 
            offices operate independently of any other Internal Revenue 
            Service office and report directly to Congress through the 
            National Taxpayer Advocate; and
                (iv) may, at the taxpayer advocate's discretion, not 
            disclose to the Internal Revenue Service contact with, or 
            information provided by, such taxpayer.

        (B) Maintenance of independent communications

            Each local office of the taxpayer advocate shall maintain a 
        separate phone, facsimile, and other electronic communication 
        access, and a separate post office address.

(d) Additional duties of the Treasury Inspector General for Tax 
        Administration

                        (1) Annual reporting

        The Treasury Inspector General for Tax Administration shall 
    include in one of the semiannual reports under section 5 of the 
    Inspector General Act of 1978--
            (A) an evaluation of the compliance of the Internal Revenue 
        Service with--
                (i) restrictions under section 1204 of the Internal 
            Revenue Service Restructuring and Reform Act of 1998 on the 
            use of enforcement statistics to evaluate Internal Revenue 
            Service employees;
                (ii) restrictions under section 7521 on directly 
            contacting taxpayers who have indicated that they prefer 
            their representatives be contacted;
                (iii) required procedures under section 6320 upon the 
            filing of a notice of a lien;
                (iv) required procedures under subchapter D of chapter 
            64 for seizure of property for collection of taxes, 
            including required procedures under section 6330 regarding 
            levies; and
                (v) restrictions under section 3707 of the Internal 
            Revenue Service Restructuring and Reform Act of 1998 on 
            designation of taxpayers;

            (B) a review and a certification of whether or not the 
        Secretary is complying with the requirements of section 
        6103(e)(8) to disclose information to an individual filing a 
        joint return on collection activity involving the other 
        individual filing the return;
            (C) information regarding extensions of the statute of 
        limitations for assessment and collection of tax under section 
        6501 and the provision of notice to taxpayers regarding requests 
        for such extension;
            (D) an evaluation of the adequacy and security of the 
        technology of the Internal Revenue Service;
            (E) any termination or mitigation under section 1203 of the 
        Internal Revenue Service Restructuring and Reform Act of 1998;
            (F) information regarding improper denial of requests for 
        information from the Internal Revenue Service identified under 
        paragraph (3)(A); and
            (G) information regarding any administrative or civil 
        actions with respect to violations of the fair debt collection 
        provisions of section 6304, including--
                (i) a summary of such actions initiated since the date 
            of the last report; and
                (ii) a summary of any judgments or awards granted as a 
            result of such actions.

                       (2) Semiannual reports

        (A) In general.--The Treasury Inspector General for Tax 
    Administration shall include in each semiannual report under section 
    5 of the Inspector General Act of 1978--
            (i) the number of taxpayer complaints during the reporting 
        period;
            (ii) the number of employee misconduct and taxpayer abuse 
        allegations received by the Internal Revenue Service or the 
        Inspector General during the period from taxpayers, Internal 
        Revenue Service employees, and other sources;
            (iii) a summary of the status of such complaints and 
        allegations; and
            (iv) a summary of the disposition of such complaints and 
        allegations, including the outcome of any Department of Justice 
        action and any monies paid as a settlement of such complaints 
        and allegations.

        (B) Clauses (iii) and (iv) of subparagraph (A) shall only apply 
    to complaints and allegations of serious employee misconduct.

                     (3) Other responsibilities

        The Treasury Inspector General for Tax Administration shall--
            (A) conduct periodic audits of a statistically valid sample 
        of the total number of determinations made by the Internal 
        Revenue Service to deny written requests to disclose information 
        to taxpayers on the basis of section 6103 of this title or 
        section 552(b)(7) of title 5, United States Code; and
            (B) establish and maintain a toll-free telephone number for 
        taxpayers to use to confidentially register complaints of 
        misconduct by Internal Revenue Service employees and incorporate 
        the telephone number in the statement required by section 6227 
        of the Omnibus Taxpayer Bill of Rights (Internal Revenue Service 
        Publication No. 1).

(Aug. 16, 1954, ch. 736, 68A Stat. 915; Pub. L. 92-310, title II, 
Sec. 230(e), June 6, 1972, 86 Stat. 209; Pub. L. 94-455, title XIX, 
Sec. 1906(a)(58), (b)(13)(A), Oct. 4, 1976, 90 Stat. 1833, 1834; Pub. L. 
105-206, title I, Sec. 1102(a), July 22, 1998, 112 Stat. 697.)

                       References in Text

    The provisions of title 5 relating to appointments in the 
competitive service and the Senior Executive Service, referred to in 
subsec. (c)(1)(B)(ii), are classified generally to section 3301 et seq. 
of Title 5, Government Organization and Employees.
    Section 5 of the Inspector General Act of 1978, referred to in 
subsec. (d)(1), (2)(A), is section 5 of Pub. L. 95-452, which is set out 
in the Appendix to Title 5, Government Organization and Employees.
    Sections 1203, 1204, and 3707 of the Internal Revenue Service 
Restructuring and Reform Act of 1998, referred to in subsec. 
(d)(1)(A)(i), (v), (E), are sections 1203, 1204, and 3707 of Pub. L. 
105-206, which are set out as notes under sections 7804, 7804, and 6651, 
respectively, of this title.
    Section 6227 of the Omnibus Taxpayer Bill of Rights, referred to in 
subsec. (d)(3)(B), is section 6227 of Pub. L. 100-647, which is set out 
as a note under section 7801 of this title.


                               Amendments

    1998--Pub. L. 105-206 amended section catchline and text generally, 
substituting present provisions for provisions which: in subsec. (a), 
authorized appointment of persons for administration and enforcement of 
internal revenue laws; in subsec. (b), directed Secretary to determine 
and designate posts of duty of employees in field service, and 
authorized Secretary to order such employees to duty within and outside 
District of Columbia; and in subsec. (c), directed Secretary to issue 
notice and demand for failure to account for and pay over money or 
property collected in connection with internal revenue laws, and deemed 
amount so demanded to be imposed and assessed upon the officer or 
employee upon the date of such notice and demand. See section 7804 of 
this title.
    1976--Subsecs. (a), (b), (c). Pub. L. 94-455, Sec. 1906(b) (13)(A), 
struck out ``or his delegate'' after ``Secretary'' wherever appearing.
    Subsecs. (c), (d). Pub. L. 94-455, Sec. 1906(a)(58), redesignated 
subsec. (d) as (c).
    1972--Subsec. (c). Pub. L. 92-310 repealed subsec. (c) which related 
to bonds of officers and employees.

                         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. 1102(f), July 22, 1998, 112 Stat. 
705, provided that:
    ``(1) In general.--Except as provided in paragraph (2), the 
amendments made by this section [amending this section, sections 6212, 
6323, 6343, 7611, and 7811 of this title, and section 5109 of Title 5, 
Government Organization and Employees] shall take effect on the date of 
the enactment of this Act [July 22, 1998].
    ``(2) Chief counsel.--Section 7803(b)(3) of the Internal Revenue 
Code of 1986, as added by this section, shall take effect on the date 
that is 90 days after the date of the enactment of this Act.
    ``(3) National taxpayer advocate.--Notwithstanding section 
7803(c)(1)(B)(iv) of such Code, as added by this section, in appointing 
the first National Taxpayer Advocate after the date of the enactment of 
this Act, the Secretary of the Treasury--
        ``(A) shall not appoint any individual who was an officer or 
    employee of the Internal Revenue Service at any time during the 2-
    year period ending on the date of appointment; and
        ``(B) need not consult with the Internal Revenue Service 
    Oversight Board if the Oversight Board has not been appointed.
    ``(4) Current officers.--
        ``(A) In the case of an individual serving as Commissioner of 
    Internal Revenue on the date of the enactment of this Act who was 
    appointed to such position before such date, the 5-year term 
    required by section 7803(a)(1) of such Code, as added by this 
    section, shall begin as of the date of such appointment.
        ``(B) Clauses (ii), (iii), and (iv) of section 7803(c)(1)(B) of 
    such Code, as added by this section, shall not apply to the 
    individual serving as Taxpayer Advocate on the date of the enactment 
    of this Act.''
