TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION
FISCAL YEAR 2007 STATUTORY REVIEW OF
RESTRICTIONS ON DIRECTLY CONTACTING TAXPAYERS
Issued on July 13, 2007
Highlights
Highlights of
Report Number: 2007-40-118 to the
Internal Revenue Service Deputy Commissioner for Services and Enforcement.
IMPACT ON TAXPAYERS
The Omnibus Taxpayer
Bill of Rights created a number of safeguards to protect taxpayers being
interviewed by an Internal Revenue Service (IRS) employee as part of an examination
or collection action. IRS employees are
required to stop an interview if the taxpayer requests to consult with a
representative and may not bypass a representative without supervisory
approval. Neither the IRS nor TIGTA could
readily identify cases in which the taxpayer requested a representative or the
IRS improperly bypassed the representative.
Of the limited number of complaints received related to this issue,
there were none in which the facts of the case indicated the IRS employee did
not comply with the taxpayer’s request to consult with a representative or
improperly bypassed the representative.
WHY TIGTA DID THE AUDIT
This
audit was initiated because TIGTA is required to annually report on the IRS’
compliance with Internal Revenue Code Sections 7521(b)(2) and (c).
The IRS Restructuring
and Reform Act of 1998 required the IRS to revise Your Rights as a Taxpayer (Publication 1) to inform taxpayers of
their rights (1) to be represented at interviews and (2) to suspend an
interview pursuant to Internal
Revenue Code Section 7521(b)(2). Senate
Committee on Finance Report 105-174 (dated April 22, 1998) stated that
Congress believes taxpayers should be more fully informed of their rights to
representation in dealing with the IRS and those rights should be respected.
WHAT
TIGTA FOUND
The IRS Internal
Revenue Manual provides employees with guidance to help ensure compliance with
the direct contact provisions. In
addition, the IRS has informed taxpayers of these rights through issuance of various
IRS publications. TIGTA could not
determine whether IRS employees followed proper procedures to stop an interview
if the taxpayer requested to consult with a representative. Neither the IRS nor TIGTA could readily
identify cases in which the taxpayer requested a representative or the IRS
contacted the taxpayer directly and bypassed the representative.
One way to identify
possible violations of these taxpayer rights is to determine if taxpayers have
complained that an IRS employee intentionally denied them their right to
representation or bypassed their representatives without proper approval. Taxpayer complaints that allege IRS employees
bypassed their representatives and contacted them directly are tracked by the
TIGTA Office of Investigations. The
TIGTA Office of Investigations closed seven direct contact complaint cases,
involving six IRS employees, between October 2005 and September 2006. In all seven cases, the Office of
Investigations determined the facts did not support the opening of a criminal
investigation for any violation of the law.
WHAT TIGTA RECOMMENDED
Because this was a
positive report and TIGTA made no specific recommendations, comments from the
IRS were not required.
READ THE
FULL REPORT
To view the report,
including the scope, methodology, and full IRS response, go to:
http://www.treas.gov/tigta/auditreports/2007reports/200740118fr.html.
Email
Address: Bonnie.Heald@tigta.treas.gov
Phone Number: 202-927-7037
Web Site:
http://www.tigta.gov