Expansion of TAO Authority

Provides the Taxpayer Advocate with broader authority to take action for taxpayers with potential significant hardship conditions created by tax law administration.

A TAO (Taxpayer Assistance Order) may specify a time period in which that TAO must be followed.

Authority to modify or rescind a TAO is given only to the:

• Taxpayer Advocate; 
• Commissioner of IRS; or 
• Deputy Commissioner of IRS. 

Written explanation of the reasons for the modification or rescission of a TAO must be provided to the Taxpayer Advocate.

Effective on the date of enactment.

Installment Agreements

Termination Notification

Requires the IRS to notify taxpayers 30 days before altering, modifying, or terminating an installment agreement (excluding jeopardy conditions).

The notification must include an explanation of why the IRS intends to take the action.

Effective 6 months after the date of enactment

Administrative Review of Termination

Requires IRS to establish independent administrative review procedures of an installment agreement termination if taxpayers request such a review.

Effective 1-1-97.