Sec. 1001. ESTABLISHMENT OF INTERNAL REVENUE SERVICE INDEPENDENT OFFICE OF APPEALS
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## SEC. 1001 ESTABLISHMENT OF INTERNAL REVENUE SERVICE INDEPENDENT OFFICE OF APPEALS ###
(a)In General **[**[26 U.S.C. 7803](/us/usc/t26/s7803)**]** Section 7803 is amended by adding at the end the following new subsection: > > ### “(e) Independent Office of Appeals > > > #### “(1) Establishment > > There is established in the Internal Revenue Service an office to be known as the ‘Internal Revenue Service Independent Office of Appeals’. > > > #### “(2) Chief of appeals > > > ##### “(A) In general > > The Internal Revenue Service Independent Office of Appeals shall be under the supervision and direction of an official to be known as the ‘Chief of Appeals’. The Chief of Appeals 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. > > > ##### “(B) Appointment > > The Chief of Appeals shall be appointed by the Commissioner of Internal Revenue without regard to the provisions of title 5, United States Code, relating to appointments in the competitive service or the Senior Executive Service. > > > ##### “(C) Qualifications > > An individual appointed under subparagraph
(B)shall have experience and expertise in— > > > ###### “(i) > > administration of, and compliance with, Federal tax laws, > > > ###### “(ii) > > a broad range of compliance cases, and > > > ###### “(iii) > > management of large service organizations. > > > #### “(3) Purposes and duties of office > > It shall be the function of the Internal Revenue Service Independent Office of Appeals to resolve Federal tax controversies without litigation on a basis which— > > > ##### “(A) > > is fair and impartial to both the Government and the taxpayer, > > > ##### “(B) > > promotes a consistent application and interpretation of, and voluntary compliance with, the Federal tax laws, and > > > ##### “(C) > > enhances public confidence in the integrity and efficiency of the Internal Revenue Service. > > > #### “(4) Right of appeal > > The resolution process described in paragraph
(3)shall be generally available to all taxpayers. > > > #### “(5) Limitation on designation of cases as not eligible for referral to independent office of appeals > > > ##### “(A) In general > > If any taxpayer which is in receipt of a notice of deficiency authorized under section 6212 requests referral to the Internal Revenue Service Independent Office of Appeals and such request is denied, the Commissioner of Internal Revenue shall provide such taxpayer a written notice which— > > > ###### “(i) > > provides a detailed description of the facts involved, the basis for the decision to deny the request, and a detailed explanation of how the basis of such decision applies to such facts, and > > > ###### “(ii) > > describes the procedures prescribed under subparagraph
(C)for protesting the decision to deny the request. > > > ##### “(B) Report to congress > > The Commissioner of Internal Revenue shall submit a written report to Congress on an annual basis which includes the number of requests described in subparagraph
(A)which were denied and the reasons (described by category) that such requests were denied. > > > ##### “(C) Procedures for protesting denial of request > > The Commissioner of Internal Revenue shall prescribe procedures for protesting to the Commissioner of Internal Revenue a denial of a request described in subparagraph (A). > > > ##### “(D) Not applicable to frivolous positions > > This paragraph shall not apply to a request for referral to the Internal Revenue Service Independent Office of Appeals which is denied on the basis that the issue involved is a frivolous position (within the meaning of section 6702(c)). > > > #### “(6) Staff > > > ##### “(A) In general > > All personnel in the Internal Revenue Service Independent Office of Appeals shall report to the Chief of Appeals. > > > ##### “(B) Access to staff of office of the chief counsel > > The Chief of Appeals shall have authority to obtain legal assistance and advice from the staff of the Office of the Chief Counsel. The Chief Counsel shall ensure, to the extent practicable, that such assistance and advice is provided by staff of the Office of the Chief Counsel who were not involved in the case with respect to which such assistance and advice is sought and who are not involved in preparing such case for litigation. > > > #### “(7) Access to case files > > > ##### “(A) In general > > In any case in which a conference with the Internal Revenue Service Independent Office of Appeals has been scheduled upon request of a specified taxpayer, the Chief of Appeals shall ensure that such taxpayer is provided access to the nonprivileged portions of the case file on record regarding the disputed issues (other than documents provided by the taxpayer to the Internal Revenue Service) not later than 10 days before the date of such conference. > > > ##### “(B) Taxpayer election to expedite conference > > If the taxpayer so elects, subparagraph
(A)shall be applied by substituting ‘the date of such conference’ for ‘10 days before the date of such conference’. > > > ##### “(C) Specified taxpayer > > For purposes of this paragraph— > > > ###### “(i) In general > > The term ‘specified taxpayer’ means— > > > ###### “(I) > > in the case of any taxpayer who is a natural person, a taxpayer whose adjusted gross income does not exceed $400,000 for the taxable year to which the dispute relates, and > > > ###### “(II) > > in the case of any other taxpayer, a taxpayer whose gross receipts do not exceed $5 million for the taxable year to which the dispute relates. > > > ###### “(ii) Aggregation rule > > Rules similar to the rules of section 448(c)(2) shall apply for purposes of clause (i)(II). ” > . ###
(b)Conforming Amendments ####
(1)The following provisions are each amended by striking “Internal Revenue Service Office of Appeals” and inserting “Internal Revenue Service Independent Office of Appeals”: #####
(A)**[**[26 U.S.C. 6015](/us/usc/t26/s6015)**]** Section 6015(c)(4)(B)(ii)(I). #####
(B)Section 6320(b)(1). #####
(C)Subsections (b)(1) and (d)(3) of section 6330. #####
(D)Section 6603(d)(3)(B). #####
(E)Section 6621(c)(2)(A)(i). #####
(F)Section 7122(e)(2). #####
(G)Subsections (a), (b)(1), (b)(2), and (c)(1) of section 7123. #####
(H)Subsections (c)(7)(B)(i) and (g)(2)(A) of section 7430. #####
(I)Section 7522(b)(3). #####
(J)Section 7612(c)(2)(A). ####
(2)Section 7430(c)(2) is amended by striking “Internal Revenue Service Office of Appeals” each place it appears and inserting “Internal Revenue Service Independent Office of Appeals”. ####
(3)The heading of section 6330(d)(3) is amended by inserting “independent” after “irs”. ###
(c)Other References **[**[26 U.S.C. 7803 note](/us/usc/t26/s7803)**]** Any reference in any provision of law, or regulation or other guidance, to the Internal Revenue Service Office of Appeals shall be treated as a reference to the Internal Revenue Service Independent Office of Appeals. ###
(d)Savings Provisions **[**[26 U.S.C. 7803 note](/us/usc/t26/s7803)**]** Rules similar to the rules of paragraphs
(2)through
(6)of section 1001(b) of the Internal Revenue Service Restructuring and Reform Act of 1998 shall apply for purposes of this section (and the amendments made by this section). ###
(e)Effective Date **[**[26 U.S.C. 7803 note](/us/usc/t26/s7803)**]** ####
(1)In general Except as otherwise provided in this subsection, the amendments made by this section shall take effect on the date of the enactment of this Act. ####
(2)Access to case files Section 7803(e)(7) of the Internal Revenue Code of 1986, as added by subsection (a), shall apply to conferences occurring after the date which is 1 year after the date of the enactment of this Act. ## Subtitle B Improved Service
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Sec. 1001
ESTABLISHMENT OF INTERNAL REVENUE SERVICE INDEPENDENT OFFICE OF APPEALS
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