Purpose: This section explains the evolution, mission, authority, and guiding principles of the Office of the Taxpayer Advocate (commonly known as the Taxpayer Advocate Service (TAS)).

The Office of the Taxpayer Ombudsman was created by the IRS in 1979 to serve as the primary advocate, within the IRS, for taxpayers. This position was codified in the Taxpayer Bill of Rights 1 (TBOR 1), included in the Technical and Miscellaneous Revenue Act of 1988 (TAMRA), Public Law 100-647.

In TBOR 1, Congress added Internal Revenue Code (IRC) 7811, granting the Ombudsman (now the NTA) the statutory authority to issue Taxpayer Assistance Orders (TAOs) if, in the determination of the Ombudsman, a taxpayer is suffering or is about to suffer significant hardship because of the way the Internal Revenue laws are being administered by the Secretary. Further, TBOR 1 directed the Ombudsman and the Assistant Commissioner (Taxpayer Services) to jointly provide an Annual Report to Congress about the quality of taxpayer services provided by the IRS. This report was delivered directly to the Senate Committee on Finance and the House Committee on Ways and Means.

In 1996, the Taxpayer Bill of Rights 2 (TBOR 2) amended IRC 7802 (the predecessor to IRC 7803(c)), replacing the Office of the Taxpayer Ombudsman with the Office of the Taxpayer Advocate. The Joint Committee on Taxation set forth the following reasons for change:

In TBOR 2, Congress not only established the Office of the Taxpayer Advocate, but also described its functions:

Congress did not provide the Taxpayer Advocate with direct line authority over the regional and local Problem Resolution Officers (PROs) who handled cases under the Problem Resolution Program, the predecessor to the Office of the Taxpayer Advocate. At the time of the enactment of TBOR 2, Congress believed it sufficient to require that “all PROs should take direction from the Taxpayer Advocate and that they should operate with sufficient independence to assure that taxpayer rights are not being subordinated to pressure from local revenue officers, district directors, etc.” J. Comm. on Tax’n, General Explanation of Tax Legislation Enacted in the 104th Congress, JCS-12-96, 21 (Dec. 18, 1996).

TBOR 2 also replaced the joint Assistant Commissioner/Taxpayer Advocate Report to Congress with two Annual Reports to Congress issued directly and independently by the Taxpayer Advocate. The first report is to contain the objectives of the Taxpayer Advocate for the fiscal year beginning in that calendar year. This report is to provide full and substantive analysis in addition to statistical information and is due no later than June 30 of each calendar year.

The second report, the Annual Report to Congress (ARC), is on the activities of the Taxpayer Advocate during the fiscal year ending during that calendar year. Section 7803(c)(2)(B)(ii) of the IRC, as amended by the Taxpayer First Act (TFA), requires the NTA to submit this report each year and to include in it, among other things, a description of the ten most serious problems encountered by taxpayers as well as administrative and legislative recommendations to mitigate those problems. Previously, the report was required to contain a description of at least 20 of the most serious problems facing taxpayers. The report must now:

IRC 7803(c)(2)(B)(iii) requires both reports to be provided directly to Congress, without prior review or comment by the IRS. This ensures that TAS is truly independent and can report freely to Congress on the most serious problems encountered by taxpayers without being censored by the agency about which it is reporting.

Finally, TBOR 2 amended IRC 7811, extending the scope of a TAO, by providing the Taxpayer Advocate “with broader authority to affirmatively take any action as permitted by law with respect to taxpayers who would otherwise suffer a significant hardship as a result of the manner in which the IRS is administering the tax laws.” J. Comm. on Tax’n, General Explanation of Tax Legislation Enacted in the 104th Congress, JCS-12-96, 21 (Dec. 18, 1996). For the first time, the TAO could specify a time period within which the IRS must act on the order. The statute also provided that only the Taxpayer Advocate, the IRS Commissioner, or the Deputy Commissioner could modify or rescind a TAO, and that any official who so modifies or rescinds a TAO must respond in writing to the Taxpayer Advocate with his or her reasons for such action.

In 1997, the National Commission on Restructuring the Internal Revenue Service called the Taxpayer Advocate the “voice of the taxpayer.” In its discussion of the Office of the Taxpayer Advocate, the Commission noted: “Taxpayer Advocates play an important role and are essential for the protection of taxpayer rights and to promote taxpayer confidence in the integrity and accountability of the IRS. To succeed, the Advocate must be viewed, both in perception and reality, as an independent voice for the taxpayer within the IRS. Currently, the [N]ational Taxpayer Advocate is not viewed as independent by many in Congress. This view is based in part on the placement of the Advocate within the IRS and the fact that only career employees have been chosen to fill the position.” Report of the National Commission of Restructuring the Internal Revenue Service, A Vision for a New IRS, 48 (June 25, 1997).

In response to these concerns, in the IRS Restructuring and Reform Act of 1998 (RRA 98), Congress amended IRC 7803(c) renaming the Taxpayer Advocate as the NTA and mandating that the NTA could not be an officer or an employee of the IRS for two years preceding or five years following his or her tenure as the NTA (service as an employee of the Office of the Taxpayer Advocate is not considered IRS employment under this provision).

RRA 98 provided for LTAs to be located in each state and mandated a reporting structure for LTAs to report directly to the NTA. As indicated in IRC 7803(c)(4)(B), each LTA must have a phone, fax, electronic communication, and mailing address separate from those of the IRS. The LTA must advise taxpayers at their first meeting of the fact that “the taxpayer advocate offices operate independently of any other Internal Revenue Service office and report directly to Congress through the NTA.”

Congress also granted the LTAs discretion to not disclose to the IRS the fact that the taxpayer contacted the Office of the Taxpayer Advocate or any information provided by the taxpayer to that office. RRA 98 also expanded the definition of “significant hardship” in IRC 7811 to include four specific circumstances:

The Committee Reports make clear that this list is a non-exclusive list of what constitutes a significant hardship.

Prior to 2011, Treasury Regulation 301.7811-1 had not been updated since it was first published in 1992. Consequently, after Congress expanded the definition of “significant hardship” in the statute in 1998, the definition in the regulation was inconsistent. However, on April 1, 2011, the IRS published in the Federal Register final regulations under IRC 7811 that contain a definition of significant hardship consistent with existing law and practice.

The NTA has long since advocated that the IRS adopt TBOR. In June 2014, the IRS finally adopted the Taxpayer Bill of Rights - a set of ten fundamental rights that taxpayers should be aware of when dealing with the IRS. The right to a fair and just tax system gives taxpayers the right to receive assistance from the Office of the Taxpayer Advocate if they are experiencing financial difficulty or if the IRS has not resolved their tax issues properly and timely through its normal channels. In December 2015, Congress enacted IRC 7803(a)(3), which requires the Commissioner to ensure that employees of the IRS are familiar with and act in accord with taxpayer rights, including the right to a fair and just tax system.

The passing of the TFA in July 2019 also codified the timeframes surrounding issuance of TADs. Now the IRS must respond to a TAD no later than 90 days after its issuance. If the IRS decides to modify or rescind the TAD, the NTA may appeal that decision to the Commissioner of the IRS within 90 days. The Commissioner then has 90 days to either ensure compliance with the TAD or provide reasons to the NTA for the modification or rescission of the TAD. Additionally, the NTA must report on any TADs that were not honored in a timely manner in the ARC.

TAS is the taxpayer’s voice at the IRS. TAS helps taxpayers resolve tax problems with the IRS and recommend changes that will prevent problems.

TAS is an independent organization within the IRS. TAS will strive to ensure that every taxpayer is treated fairly and that they know and fully understand taxpayer rights.

TAS communicates the TAS vision through the Objectives and Annual Reports to Congress. The organization fulfills its mission through two types of advocacy:

As an independent part of the IRS, TAS has the responsibility to help bridge the gap for those taxpayers who have unresolved issues or problems. TAS advocates for:

TAS strives to exemplify professional and ethical behavior. Effective advocacy will benefit both the taxpayer and the IRS.

TAS is composed of advocates. The key characteristics of advocates are independence, impartiality, and confidentiality. Advocacy is not just about recommending legislative and procedural changes, but it’s also about applying advocacy attributes to each taxpayer's case. An advocate conducts an independent and impartial analysis of all information relevant to the taxpayer's problem. Advocates are professionals who:

An advocate's goal is to provide quality service to the taxpayer and elevate issues when appropriate.

TAS assists taxpayers in resolving problems with the IRS when the taxpayer’s situation meets TAS’s case criteria. See IRM 13.1.7.3, TAS Case Criteria. When TAS cannot provide a remedy for taxpayers because of deficiencies in administrative procedures or barriers imposed by the tax law, TAS will propose administrative solutions or legislative changes, as appropriate.

TAS Guiding Principles govern the way TAS does business, and represent the essence of what the customer needs, wants, and expects. These principles reflect how the customer expects to be engaged. The principles should inspire, focus, and help promote the TAS mission. They help anchor and drive the organization’s performance and should be reinforced at all times and levels throughout the organization. These seven principles will guide TAS in advocating for customers.

To support its mission statement and Guiding Principles, TAS has articulated roles and responsibilities for all its managers and employees. TAS will:

IRM 13 provides guidance specifically for TAS employees and is also available to all IRS employees to aid in their understanding of the valuable role that TAS plays in tax administration.

The time frames provided in IRM 13 reflect the standards set by the NTA. These time frames reflect TAS’s commitment to helping taxpayers in an expeditious manner.

IRM 13 doesn’t change the responsibility of IRS employees to resolve problems (or starting to take steps to resolve) brought to their attention if they can do so or to refer taxpayers to the appropriate OD/Functional Unit office. See IRM 13.1.7.6, Same Day Resolution by Operations.