Tax News

CCH (cch.taxgroup.com) reports:

  The IRS has released proposed regulations on the issuance of Taxpayer Assistance Orders (TAOs) by the National Taxpayer Advocate (NTA) to reflect legislative changes and to provide updated guidance on the administration of TAOs. The regulations are generally effective for TAOs issued on or after the date the final regulations are published. Code Sec. 7811 authorizes the NTA to issue a TAO when a taxpayer is suffering or about to suffer a significant hardship as a result of the manner in which the internal revenue laws are being administered by the IRS. A TAO may be issued by the NTA regardless of whether a taxpayer has submitted an application with the NTA on Form 911, Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order).

  The proposed regulations provide guidance on what constitutes significant hardship, including specific guidance with regard to the 30-day delay standard. However, a finding by the NTA that a taxpayer is suffering or about to suffer a significant hardship will not automatically result in the issuance of a TAO. The NTA must make a separate determination that the facts and law support relief. If and when a TAO is issued, it acts as an order directing the IRS to either cease any action or take any action under any provision of the internal revenue laws within a specified time. The IRS must comply with the TAO unless it is appealed and then modified or rescinded by the IRS Commissioner, IRS Deputy Commissioner, or the NTA. The TAO may be issued to an office, operating division or function of the IRS, as well as any private collection agency working under contract with the IRS. However, a TAO cannot be issued to the IRS Criminal Investigation (CI) division if the CI division reasonably determines that the TAO would impede its investigation of the taxpayer.

Proposed Regulations, NPRM REG-152166-05, 2009FED ¶49,424

Other References:

 
Code Sec. 7811

  CCH Reference - 2009FED ¶43,308A

  Tax Research Consultant

  CCH Reference - TRC IRS: 3,058.05
CCH Reference -
TRC IRS: 30,220
CCH Reference - TRC IRS: 45,112.20
CCH Reference - TRC IRS: 45,204.50