[Federal Register Volume 85, Number 222 (Tuesday, November 17, 2020)]
[Proposed Rules]
[Pages 73252-73253]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-25240]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Chapter I
IRS Review of Regulatory and Other Relief To Support Economic
Recovery
AGENCY: Internal Revenue Service, Department of the Treasury.
ACTION: Request for comments.
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SUMMARY: On May 19, 2020, the President signed Executive Order 13924,
Executive Order On Regulatory Relief to Support Economic Recovery, to
direct agencies to consider principles of fairness in administrative
enforcement and adjudication and to consider rescinding, modifying, or
waiving any regulations and other requirements that may inhibit the
ongoing economic recovery from the Coronavirus Disease 2019 pandemic.
In furtherance of E.O. 13924, this document invites members of the
public to submit comments to the Internal Revenue Service concerning
regulations and other requirements that can be rescinded, modified, or
waived to assist business and individual taxpayers with the ongoing
economic recovery from the Coronavirus Disease 2019 pandemic.
DATES: Comment due date: January 4, 2021.
ADDRESSES: Interested persons are invited to submit comments in
response to this notice according to the instructions below. All
submissions should refer to the title of this document, IRS Review of
Regulatory and Other Relief to Support Economic Recovery.
Submission of Comments: Taxpayers are strongly encouraged to submit
comments electronically via the Federal eRulemaking Portal at
www.regulations.gov (type IRS Review of Regulatory and Other Relief to
Support Economic Recovery in the search field on the regulations.gov
homepage to find this notice and submit comments). Alternatively,
taxpayers may mail comments to: Internal Revenue Service, Attn: CC:PA:
LPD:PR (IRS Review of Regulatory Relief) Room 5203, P.O. Box 7604, Ben
Franklin Station, Washington, DC 20044.
The IRS expects to have limited personnel available to process
public comments that are submitted on paper through the mail. Any
comments submitted on paper will be considered to the extent
practicable.
Public Inspection of Comments: In general, all comments received
will be available for public inspection on www.regulations.gov. Once
submitted to the Federal eRulemaking Portal, comments cannot be edited
or withdrawn.
FOR FURTHER INFORMATION CONTACT: Kevin Gillin, IRS Office of Chief
Counsel, Procedure and Administration, (202) 317-5403.
SUPPLEMENTARY INFORMATION: On May 19, 2020, the President signed
Executive Order 13924, Executive Order on Regulatory Relief to Support
Economic Recovery. Section 6 of the Order directs agencies to
``consider the principles of fairness in administrative enforcement and
adjudication'' and consider rescinding, modifying, or waiving any
regulations and other requirements that may inhibit the ongoing
economic recovery from the Coronavirus Disease 2019 (COVID-19) pandemic
``consistent with applicable law and as they deem appropriate in the
context of particular statutory and regulatory programs and the policy
considerations identified in section 1 of this order.''
Since the onset of COVID-19, and consistent with E.O. 13924, the
Internal Revenue Service has taken numerous steps to adjust its
compliance and enforcement practices to provide relief to individual
and business taxpayers affected by the pandemic. The IRS has issued
guidance in the Internal Revenue Bulletin designed to provide relief
from statutory and regulatory requirements. In a series of Notices
issued pursuant to I.R.C. Sec. 7508A, the IRS postponed deadlines for
filing tax returns and making tax payments and extended the deadlines
for other time sensitive acts. See, e.g., Notice 2020-18, Notice 2020-
20, and Notice 2020-23. The IRS also provided regulatory relief such as
in Notice 2020-25, which sought to maintain liquidity and stability in
markets by expanding the circumstances and time periods in which a tax-
exempt bond that is purchased by its state or local governmental issuer
is treated as continuing in effect without resulting in a reissuance or
retirement of the purchased tax-exempt bond.
In May, the IRS also announced its People First Initiative to pause
compliance and enforcement activity with respect to millions of
American taxpayers by suspending the issuance of liens and levies,
suspending payment dates under installment agreements, and postponing
the initiation of new compliance actions.\1\ Most recently, the IRS
announced additional relief options available to assist taxpayers
experiencing financial difficulties which include abating penalties
where appropriate, extending payment plans, expanding access to
installment agreements, and providing relief for taxpayers having
difficulty meeting the terms of previously accepted offers to settle
tax debts.\2\ The IRS facilitated taxpayer communication with the IRS
by allowing the use of images of signatures and digital signatures by
taxpayers on statements and forms collected by the IRS outside of
standard filing processes and the transmittal of communications by
electronic facsimile and other secure electronic means.\3\ The IRS set
out procedures allowing taxpayers to electronically fax forms (new IRS
Form 7200) seeking claims for advance payments of the family and sick
leave credits provided for by sections 7001 through 7004 of the
Families First Coronavirus Response Act, Public Law 116-127, 134 Stat.
178 (Families First Act) \4\ and claims for refund due to carryback of
net operating losses and alternative minimum tax under sections 2303
and 2305 of the Coronavirus Aid, Relief, and Economic Security Act,
Public Law 116-136, 134 Stat. 281 (CARES Act) so that the IRS could
expedite processing of these refund claims.\5\ To expedite taxpayer
requests for pre-enforcement rulings, the IRS issued Revenue Procedure
2020-29 allowing taxpayers to submit requests for advice such as letter
rulings by electronic means and encouraged
[[Page 73253]]
taxpayers to seek expedited consideration of ruling requests if they
faced a compelling need related to COVID-19.
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\1\ https://www.irs.gov/newsroom/irs-unveils-new-people-first-initiative-covid-19-effort-temporarily-adjusts-suspends-key-compliance-program.
\2\ https://www.irs.gov/about-irs/irs-offers-new-relief-options-to-help-taxpayers-affected-by-covid-19.
\3\ https://www.irs.gov/pub/foia/ig/spder/nhq-01-0620-0002.pdf.
\4\ https://www.irs.gov/instructions/i7200.
\5\ https://www.irs.gov/newsroom/temporary-procedures-to-fax-certain-forms-1139-and-1045-due-to-covid-19.
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Further supporting the relief from compliance and enforcement
actions referenced above, the IRS continues to implement processes and
procedures, consistent with the direction in section 6 of E.O. 13924,
to promote fairness in administrative enforcement and adjudication. As
part of its implementation of the Taxpayer First Act, Public Law 116-
25, 133 Stat. 981 (TFA), the IRS adopted procedures designed to ensure
the independence of the IRS Independent Office of Appeals (Appeals).
Appeals is an independent function within the IRS that performs quasi-
adjudicative functions by seeking to resolve a wide variety of disputes
regarding enforcement of the Internal Revenue Code in a fair and
impartial manner. See 26 U.S.C. 7803(e) (enacted by section 1001 of the
TFA). These procedures, mandated by 26 U.S.C. 7803(e)(7)(A), provide
most taxpayers with a copy of their administrative examination file
prior to any hearing with Appeals. The IRS has also taken steps to
ensure the independence of Appeals' determinations by, whenever
possible, providing legal advice to Appeals from attorneys in the
Office of Chief Counsel working independently from those who may have
assisted in developing the case. See 26 U.S.C. 7803(e)(5)(A)(ii). To
encourage transparency in the administrative process even before a case
reaches Appeals, the IRS created a ``Respond Directly'' program that
directs employees to provide access to open case files without
requiring taxpayers to file a formal request under the Freedom of
Information Act.
The IRS operates under an extensive regime of statutory provisions
that ensure prompt and fair administrative enforcement. As required by
section 1204 of the Internal Revenue Service Restructuring and Reform
Act of 1998, Public Law 105-206, 112 Stat. 685 (RRA `98), IRS employee
performance metrics and compensation structures incentivize excellence,
accuracy, integrity, efficiency, and fairness in the application of the
law by prohibiting the use of records of tax enforcement results to
evaluate employees. RRA '98 also created new collection due process
rights that provide notice to taxpayers and an opportunity for
independent review by the Office of Appeals, as well as judicial
review, of IRS enforcement decisions to file a Notice of Federal Tax
Lien or undertake a levy action.
The IRS has also adopted principles that promote fair
administrative enforcement. In a ``Taxpayer Bill of Rights,'' \6\ the
IRS has outlined all of the rights provided in the Internal Revenue
Code when dealing with the IRS, including the right to be informed, the
right to challenge IRS determinations in an independent forum, and the
right to a fair and just tax system. The Taxpayer Bill of Rights is
prominently displayed as part of IRS Publication 1, Your Rights as a
Taxpayer, which is regularly included with IRS correspondence with
taxpayers.
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\6\ https://www.irs.gov/taxpayer-bill-of-rights.
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The above is just a sample of the numerous actions taken by the IRS
thus far to assist taxpayers affected by COVID-19. The IRS will
continue to review all temporary actions taken in response to COVID-19,
including those outlined above, to determine whether those actions
should become permanent to promote economic recovery. The IRS also
welcomes comments from taxpayers on additional measures that might
assist those affected by the COVID-19 pandemic and further aid in the
ongoing economic recovery from the pandemic.
Dated: November 5, 2020.
Sunita Lough,
Deputy Commissioner, Services and Enforcement.
[FR Doc. 2020-25240 Filed 11-13-20; 4:15 pm]
BILLING CODE 4830-01-P