
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)(3)[102]]
[Document affected by Public Law 107-67 Section 102]
[CITE: 26USC7804]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                Subtitle F--Procedure and Administration
 
                        CHAPTER 80--GENERAL RULES
 
           Subchapter A--Application of Internal Revenue Laws
 
Sec. 7804. Other personnel


(a) Appointment and supervision

    Unless otherwise prescribed by the Secretary, the Commissioner of 
Internal Revenue is authorized to employ such number of persons as the 
Commissioner deems proper for the administration and enforcement of the 
internal revenue laws, and the Commissioner shall issue all necessary 
directions, instructions, orders, and rules applicable to such persons.

(b) Posts of duty of employees in field service or traveling

    Unless otherwise prescribed by the Secretary--

                   (1) Designation of post of duty

        The Commissioner shall determine and designate the posts of duty 
    of all such persons engaged in field work or traveling on official 
    business outside of the District of Columbia.

             (2) Detail of personnel from field service

        The Commissioner may order any such person engaged in field work 
    to duty in the District of Columbia, for such periods as the 
    Commissioner may prescribe, and to any designated post of duty 
    outside the District of Columbia upon the completion of such duty.

(c) Delinquent Internal Revenue officers and employees

    If any officer or employee of the Treasury Department acting in 
connection with the internal revenue laws fails to account for and pay 
over any amount of money or property collected or received by him in 
connection with the internal revenue laws, the Secretary shall issue 
notice and demand to such officer or employee for payment of the amount 
which he failed to account for and pay over, and, upon failure to pay 
the amount demanded within the time specified in such notice, the amount 
so demanded shall be deemed imposed upon such officer or employee and 
assessed upon the date of such notice and demand, and the provisions of 
chapter 64 and all other provisions of law relating to the collection of 
assessed taxes shall be applicable in respect of such amount.

(Aug. 16, 1954, ch. 736, 68A Stat. 916; Pub. L. 94-455, title XIX, 
Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 105-206, title 
I, Sec. 1104(a), July 22, 1998, 112 Stat. 710.)


                               Amendments

    1998--Pub. L. 105-206 amended section catchline and text generally, 
substituting present provisions for provisions which had declared: in 
subsec. (a), that provisions of Reorganization Plans No. 26 of 1950 and 
No. 1 of 1952 should apply to all functions vested by this title, or by 
any act amending this title in any officer, employee, or agency of the 
Department; and in subsec. (b), that nothing in such Reorganization 
Plans should be considered to impair existing rights and remedies, that 
for the purpose of any action to recover tax all statutes, rules, and 
regulations referring to collector of internal revenue, principal 
officer for internal revenue district, or Secretary, should be deemed to 
refer to officer whose acts gave rise to such action, and that venue of 
any such action should be the same as under existing law.
    1976--Pub. L. 94-455 struck out ``or his delegate'' after 
``Secretary''.


                    Effective Date of 1998 Amendment

    Pub. L. 105-206, title I, Sec. 1104(c), July 22, 1998, 112 Stat. 
710, provided that: ``The amendments made by this section [amending this 
section and section 6344 of this title] shall take effect on the date of 
the enactment of this Act [July 22, 1998].''


                Termination of Employment for Misconduct

    Pub. L. 105-206, title I, Sec. 1203, July 22, 1998, 112 Stat. 720, 
provided that:
    ``(a) In General.--Subject to subsection (c), the Commissioner of 
Internal Revenue shall terminate the employment of any employee of the 
Internal Revenue Service if there is a final administrative or judicial 
determination that such employee committed any act or omission described 
under subsection (b) in the performance of the employee's official 
duties. Such termination shall be a removal for cause on charges of 
misconduct.
    ``(b) Acts or Omissions.--The acts or omissions referred to under 
subsection (a) are--
        ``(1) willful failure to obtain the required approval signatures 
    on documents authorizing the seizure of a taxpayer's home, personal 
    belongings, or business assets;
        ``(2) providing a false statement under oath with respect to a 
    material matter involving a taxpayer or taxpayer representative;
        ``(3) with respect to a taxpayer, taxpayer representative, or 
    other employee of the Internal Revenue Service, the violation of--
            ``(A) any right under the Constitution of the United States; 
        or
            ``(B) any civil right established under--
                ``(i) title VI or VII of the Civil Rights Act of 1964 
            [42 U.S.C. 2000d et seq., 2000e et seq.];
                ``(ii) title IX of the Education Amendments of 1972 [20 
            U.S.C. 1681 et seq.];
                ``(iii) the Age Discrimination in Employment Act of 1967 
            [29 U.S.C. 621 et seq.];
                ``(iv) the Age Discrimination Act of 1975 [42 U.S.C. 
            6101 et seq.];
                ``(v) section 501 or 504 of the Rehabilitation Act of 
            1973 [29 U.S.C. 791, 794]; or
                ``(vi) title I of the Americans with Disabilities Act of 
            1990 [42 U.S.C. 12111 et seq.];
        ``(4) falsifying or destroying documents to conceal mistakes 
    made by any employee with respect to a matter involving a taxpayer 
    or taxpayer representative;
        ``(5) assault or battery on a taxpayer, taxpayer representative, 
    or other employee of the Internal Revenue Service, but only if there 
    is a criminal conviction, or a final judgment by a court in a civil 
    case, with respect to the assault or battery;
        ``(6) violations of the Internal Revenue Code of 1986, 
    Department of Treasury regulations, or policies of the Internal 
    Revenue Service (including the Internal Revenue Manual) for the 
    purpose of retaliating against, or harassing, a taxpayer, taxpayer 
    representative, or other employee of the Internal Revenue Service;
        ``(7) willful misuse of the provisions of section 6103 of the 
    Internal Revenue Code of 1986 for the purpose of concealing 
    information from a congressional inquiry;
        ``(8) willful failure to file any return of tax required under 
    the Internal Revenue Code of 1986 on or before the date prescribed 
    therefor (including any extensions), unless such failure is due to 
    reasonable cause and not to willful neglect;
        ``(9) willful understatement of Federal tax liability, unless 
    such understatement is due to reasonable cause and not to willful 
    neglect; and
        ``(10) threatening to audit a taxpayer for the purpose of 
    extracting personal gain or benefit.
    ``(c) Determination of Commissioner.--
        ``(1) In general.--The Commissioner of Internal Revenue may take 
    a personnel action other than termination for an act or omission 
    under subsection (a).
        ``(2) Discretion.--The exercise of authority under paragraph (1) 
    shall be at the sole discretion of the Commissioner of Internal 
    Revenue and may not be delegated to any other officer. The 
    Commissioner of Internal Revenue, in his sole discretion, may 
    establish a procedure which will be used to determine whether an 
    individual should be referred to the Commissioner of Internal 
    Revenue for a determination by the Commissioner under paragraph (1).
        ``(3) No appeal.--Any determination of the Commissioner of 
    Internal Revenue under this subsection may not be appealed in any 
    administrative or judicial proceeding.
    ``(d) Definition.--For purposes of the provisions described in 
clauses (i), (ii), and (iv) of subsection (b)(3)(B), references to a 
program or activity receiving Federal financial assistance or an 
education program or activity receiving Federal financial assistance 
shall include any program or activity conducted by the Internal Revenue 
Service for a taxpayer.''


                        Employee Training Program

    Pub. L. 105-206, title I, Sec. 1205, July 22, 1998, 112 Stat. 722, 
provided that:
    ``(a) In General.--Not later than 180 days after the date of the 
enactment of this Act [July 22, 1998], the Commissioner of Internal 
Revenue shall implement an employee training program and shall submit an 
employee training plan to the Committee on Finance of the Senate and the 
Committee on Ways and Means of the House of Representatives.
    ``(b) Contents.--The plan submitted under subsection (a) shall--
        ``(1) detail a comprehensive employee training program to ensure 
    adequate customer service training;
        ``(2) detail a schedule for training and the fiscal years during 
    which the training will occur;
        ``(3) detail the funding of the program and relevant information 
    to demonstrate the priority and commitment of resources to the plan;
        ``(4) review the organizational design of customer service;
        ``(5) provide for the implementation of a performance 
    development system; and
        ``(6) provide for at least 16 hours of conflict management 
    training during fiscal year 1999 for employees conducting collection 
    activities.''


                          Cataloging Complaints

    Pub. L. 105-206, title III, Sec. 3701, July 22, 1998, 112 Stat. 776, 
provided that: ``In collecting data for the report required under 
section 1211 of the Taxpayer Bill of Rights 2 (Public Law 104-168) [set 
out below], the Secretary of the Treasury or the Secretary's delegate 
shall, not later than January 1, 2000, maintain records of taxpayer 
complaints of misconduct by Internal Revenue Service employees on an 
individual employee basis.''


         Use of Pseudonyms by Internal Revenue Service Employees

    Pub. L. 105-206, title III, Sec. 3706, July 22, 1998, 112 Stat. 778, 
provided that:
    ``(a) In General.--Any employee of the Internal Revenue Service may 
use a pseudonym only if--
        ``(1) adequate justification for the use of a pseudonym is 
    provided by the employee, including protection of personal safety; 
    and
        ``(2) such use is approved by the employee's supervisor before 
    the pseudonym is used.
    ``(b) Effective Date.--Subsection (a) shall apply to requests made 
after the date of the enactment of this Act [July 22, 1998].''


                 Reports on Misconduct of IRS Employees

    Pub. L. 104-168, title XII, Sec. 1211, July 30, 1996, 110 Stat. 
1474, provided that: ``On or before June 1 of each calendar year after 
1996, the Secretary of the Treasury shall submit to the Committee on 
Ways and Means of the House of Representatives and the Committee on 
Finance of the Senate a report on--
        ``(1) all categories of instances involving the misconduct of 
    employees of the Internal Revenue Service during the preceding 
    calendar year, and
        ``(2) the disposition during the preceding calendar year of any 
    such instances (without regard to the year of the misconduct).''


    Taxpayers' Rights, Courtesy and Cross-Cultural Relations Training

    Pub. L. 106-554, Sec. 1(a)(3) [title I, Sec. 102], Dec. 21, 2000, 
114 Stat. 2763, 2763A-132, provided that: ``The Internal Revenue Service 
shall maintain a training program to ensure that Internal Revenue 
Service employees are trained in taxpayers' rights, in dealing 
courteously with the taxpayers, and in cross-cultural relations.''
    Similar provisions were contained in the following prior 
appropriation acts:
    Pub. L. 106-58, title I, Sec. 102, Sept. 29, 1999, 113 Stat. 437.
    Pub. L. 105-277, div. A, Sec. 101(h) [title I, Sec. 102], Oct. 21, 
1998, 112 Stat. 2681-480, 2681-488.
    Pub. L. 105-61, title I, Sec. 102, Oct. 10, 1997, 111 Stat. 1281.
    Pub. L. 104-208, div. A, title I, Sec. 101(f) [title I, Sec. 102], 
Sept. 30, 1996, 110 Stat. 3009-314, 3009-323.
    Pub. L. 104-52, title I, Sec. 2, Nov. 19, 1995, 109 Stat. 474.
    Pub. L. 103-329, title I, Sec. 2, Sept. 30, 1994, 108 Stat. 2388.
    Pub. L. 103-123, title I, Sec. 2, Oct. 28, 1993, 107 Stat. 1232.
    Pub. L. 102-393, title I, Sec. 2, Oct. 6, 1992, 106 Stat. 1735.


       Basis for Evaluation of Internal Revenue Service Employees

    Pub. L. 105-206, title I, Sec. 1204, July 22, 1998, 112 Stat. 722, 
provided that:
    ``(a) In General.--The Internal Revenue Service shall not use 
records of tax enforcement results--
        ``(1) to evaluate employees; or
        ``(2) to impose or suggest production quotas or goals with 
    respect to such employees.
    ``(b) Taxpayer Service.--The Internal Revenue Service shall use the 
fair and equitable treatment of taxpayers by employees as one of the 
standards for evaluating employee performance.
    ``(c) Certification.--Each appropriate supervisor shall certify 
quarterly by letter to the Commissioner of Internal Revenue whether or 
not tax enforcement results are being used in a manner prohibited by 
subsection (a).
    ``(d) Technical and Conforming Amendment.--[Repealed section 6231 of 
Pub. L. 100-647, set out below.]
    ``(e) Effective Date.--This section shall apply to evaluations 
conducted on or after the date of the enactment of this Act [July 22, 
1998].''
    Pub. L. 100-647, title VI, Sec. 6231, Nov. 10, 1988, 102 Stat. 3734, 
prohibited Internal Revenue Service use of records of tax enforcement 
results to evaluate employees or to impose or suggest production quotas 
or goals, and required quarterly certification that results had not been 
used in prohibited manner, prior to repeal by Pub. L. 105-206, title I, 
Sec. 1204(d), July 22, 1998, 112 Stat. 722.


 Sense of Congress as to Increased Internal Revenue Service Funding for 
                   Taxpayer Assistance and Enforcement

    Pub. L. 100-203, title X, Sec. 10622, Dec. 22, 1987, 101 Stat. 1330-
452, provided that:
    ``(a) Findings.--The Congress hereby finds that--
        ``(1) the Internal Revenue Service estimates that the amount of 
    taxes owed for 1986 will exceed the amount of taxes collected for 
    such year by $100 billion;
        ``(2) the current taxpayer compliance rate stands at 81.5 
    percent;
        ``(3) the tax gap can be significantly reduced by enhancing 
    taxpayer assistance services and enforcement; and
        ``(4) the Appropriations Committee of the House of 
    Representatives, in its fiscal year 1988 Internal Revenue Service 
    appropriation, took a step in the direction of providing additional 
    funding for taxpayer assistance and enforcement efforts.
    ``(b) It is the sense of the Congress that:
        ``(1) The Congress increase outlays for the Internal Revenue 
    Service in fiscal year 1989 and fiscal year 1990 in the areas of 
    taxpayer assistance and enforcement by $.7 billion in fiscal year 
    1989 for a revenue total of $3.2 billion and by $.8 billion in 
    fiscal year 1990 for a revenue total of $4.4 billion. The net 
    revenue increase would be $2.5 billion in fiscal year 1989 and $3.6 
    billion in fiscal year 1990, or a net revenue increase over the 
    House Appropriations Committee recommendations of $.4 billion in 
    fiscal year 1989 and $1.3 billion in fiscal year 1990.
        ``(2) The Internal Revenue Service offer improved taxpayer 
    assistance and enforcement efforts by using the aforementioned 
    outlays in areas recommended by, or consistent with the 
    recommendations of, the `Dorgan Task Force Report'. Taxpayer 
    assistance efforts would include providing expanded taxpayer 
    education programs, instituting pilot programs of taxmobiles in 
    rural areas, and upgrading the quality of telephone assistance. 
    Taxpayer enforcement efforts would include raising the audit rate 
    from 1.1 percent toward 2.5 percent, restoring resources to criminal 
    investigations, and the collection of delinquent accounts.
        ``(3) The Congress should undertake an experimental multiyear 
    authorization and 2-year appropriation for the Internal Revenue 
    Service consistent with the recommendations in Public Law 100-119, 
    section 201 (Increasing the Statutory Limit on the Public Debt) [2 
    U.S.C. 621 note].
        ``(4) Increased funding should be provided for compilation and 
    analysis of statistics of income and research.
The Internal Revenue Service must issue a report on the extent of the 
tax gap and the measures that could be undertaken to decrease the tax 
gap. The report must utilize more current data than has been utilized 
recently. The report must be issued by April 15, 1989. The Internal 
Revenue Service must also report annually on the improvements being made 
in the audit rate, taxpayer assistance, and enforcement efforts.''


                     Tax Counseling for the Elderly

    Pub. L. 95-600, title I, Sec. 163, Nov. 6, 1978, 92 Stat. 2810, as 
amended by Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, 
provided that:
    ``(a) Training and Technical Assistance.--
        ``(1) Agreements.--The Secretary, through the Internal Revenue 
    Service, is authorized to enter into agreements with private or 
    public nonprofit agencies or organizations for the purpose of 
    providing training and technical assistance to prepare volunteers to 
    provide tax counseling assistance for elderly individuals in the 
    preparation of their Federal income tax returns.
        ``(2) Other assistance.--In addition to any other forms of 
    technical assistance provided under this section, the Secretary may 
    provide--
            ``(A) preferential access to Internal Revenue Service 
        taxpayer service representatives for the purpose of making 
        available technical information needed during the course of the 
        volunteers' work;
            ``(B) material to be used in making elderly persons aware of 
        the availability of assistance under volunteer taxpayer 
        assistance programs under this section; and
            ``(C) technical materials and publications to be used by 
        such volunteers.
    ``(b) Powers of the Secretary.--In carrying out his responsibilities 
under this section, the Secretary is authorized--
        ``(1) to provide assistance to organizations which demonstrate, 
    to the satisfaction of the Secretary, that their volunteers are 
    adequately trained and competent to render effective tax counseling 
    to the elderly;
        ``(2) to provide for the training of such volunteers, and to 
    assist in such training, to insure that such volunteers are 
    qualified to provide tax counseling assistance to elderly 
    individuals;
        ``(3) to provide reimbursement to volunteers through such 
    organizations for transportation, meals, and other expenses incurred 
    by them in training or providing tax counseling assistance under 
    this section, and such other support and assistance as he determines 
    to be appropriate in carrying out the provisions of this section;
        ``(4) to provide for the use of services, personnel, and 
    facilities of Federal executive agencies and of State and local 
    public agencies with their consent, with or without reimbursement 
    therefor; and
        ``(5) to prescribe such rules and regulations as he deems 
    necessary to carry out the provisions of this section.
    ``(c) Employment of Volunteers.--
        ``(1) In general.--Service as a volunteer in any program carried 
    out under this section shall not be considered service as an 
    employee of the United States. Volunteers under such a program shall 
    not be considered Federal employees and shall not be subject to the 
    provisions of law relating to Federal employment, except that the 
    provisions of section 1905 of title 18, United States Code, shall 
    apply to volunteers as if they were employees of the United States.
        ``(2) Expenses.--Amounts received by volunteers serving in any 
    program carried out under this section as reimbursement for expenses 
    are exempt from taxation under chapters 1 and 21 of the Internal 
    Revenue Code of 1986 [formerly I.R.C. 1954].
    ``(d) Publicity Relating to Income Tax Provisions Particularly 
Important to the Elderly.--The Secretary shall, from time to time, 
undertake to direct the attention of elderly individuals to those 
provisions of the Internal Revenue Code of 1986 which are particularly 
important to taxpayers who are elderly individuals, such as the 
provisions of section 37 (relating to credit for the elderly) and 
section 121 (relating to one-time exclusion of gain from sale of 
principal residence) of the Internal Revenue Code of 1986.
    ``(e) Definitions.--For purposes of this section--
        ``(1) The term `Secretary' means the Secretary of the Treasury 
    or his delegate.
        ``(2) The term `elderly individual' means an individual who has 
    attained the age of 60 years as of the close of his taxable year.
        ``(3) The term `Federal income tax return' means any return 
    required under chapter 61 of the Internal Revenue Code of 1986 with 
    respect to the tax imposed on an individual under chapter 1 of such 
    Code.
    ``(f) Authorization of Appropriations.--There are authorized to be 
appropriated for the purpose of carrying out the provisions of this 
section $2,500,000 for the fiscal year ending September 30, 1979, and 
$3,500,000 for the fiscal year ending September 30, 1980.''

                  Section Referred to in Other Sections

    This section is referred to in section 6344 of this title.
