IRS Announces Its
New Headquarters Locations

WASHINGTON - The Internal Revenue Service today reached another milestone in its major restructuring of the agency by announcing the headquarters locations for its four new operating divisions.

By mid-1999, new headquarters locations will be set up in the Washington, DC, area for the Small Business & Self-Employed Operating Division and the Tax Exempt Operating Division. The Atlanta area will be the headquarters for the Wage and Investment Income Operating Division, and central New Jersey will be the headquarters for the Large & Mid-Size Business Operating Division.

"Organizing around specific customer segments is a major step toward modernizing the IRS,” said IRS Commissioner Charles O. Rossotti. “Our action today will allow us to start to tailor and improve our services to better meet taxpayers’ special needs."

The IRS emphasized that the reorganization will not change the locations where taxpayers currently receive tax assistance. "IRS will continue to maintain offices in convenient locations in cities throughout the country to provide top-quality service to taxpayers." Rossotti said. "This also means that few IRS employees will have to relocate."

Rossotti first announced the modernization concept of four operating divisions aligned to special taxpayer needs in January 1998. The IRS Restructuring and Reform Act of 1998 directed the IRS to replace its geographically organized structure with one based on units serving particular groups of taxpayers.

The operating divisions will focus on four market segments as follows:

• The Wage and Investment Income Operating Division covers about 88 million filers.

• The Small Business & Self-Employed Operating Division covers about 40 million filers.

• The Large & Mid-Size Business Operating Division covers about 170,000 filers.

• The Tax Exempt Operating Division covers about 1.5 million filers.

Currently, the field components of IRS are based solely on geography four regions headquartered in New York City, Atlanta, Dallas and San Francisco and 33 district offices.

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