Lapas attēli
PDF
ePub
[blocks in formation]

Kerr, Thomas M., Panama City, Fla., letter and attachments

Kirby, William P., Bensalem, Pa., letter.

Lowery, Anita, the Justice Times, Clinton, Ark., statement.

Ludlum, Gloria, Garland, Tex., letter......

Marshfield, Jack L., Stafford, Va., statement

O'Donnell, Mrs. Georgia G., Fort Lauderdale, Fla., letters

Miller, A. S., Jr., Chicago, Ill., letter...

Poor, Peggy, Fort Lauderdale, Fla., mailgrams and other documents.

Prichard, Jerry and Marsha, Craig, Colo., letter and attachments

Ross, Edward F., Anaheim, Calif., letter and attachments...

Sileven, Everett, Louisville, Nebr., letter..

Wheeler, Mrs. Alton W., New Milford, Conn., letter.

Wolfe, Foster S., Commerce City, Colo., letter

Page

743

745

747

748

749

750

754

764

768

770

772

777

778

782

799

806

811

812

814

TAXPAYER SAFEGUARDS

MONDAY, APRIL 26, 1982

HOUSE OF REPRESENTATIVES,
COMMITTEE ON WAYS AND MEANS,

SUBCOMMITTEE ON OVERSIGHT,

Washington, D.C.

The subcommittee met, at 10 a.m., pursuant to notice, in room 1100, Longworth House Office Building, Hon. Charles B. Rangel (chairman of the subcommittee) presiding.

[The press release announcing the hearing follows:]

[Press release of Tuesday, April 6, 1982]

HON. CHARLES B. RANGEL, CHAIRMAN, SUBCOMMITTEE ON OVERSIGHT, COMMITTEE ON WAYS AND MEANS, ANNOUNCES HEARING ON TAXPAYER SAFEGUARDS

The Honorable Charles B. Rangel (D-N.Y.), Chairman of the Ways and Means Subcommittee on Oversight, announced today that a hearing will be held on Monday, April 26, 1982, to examine the question of whether the administrative policies and procedures employed by the Internal Revenue Service in carrying out the tax laws are consistent with those laws and effectively assure the substantive and procedural rights of taxpayers. The hearing will begin at 10:00 a.m. in Room 1100 Longworth House Office Building.

BACKGROUND

This hearing is being conducted as part of the Subcommittee's ongoing investigation of issues and problems that Members of Congress and individual taxpayers have brought to the Subcommittee's attention. One issue of particular importance that will be addressed during the hearing is whether the Service has engaged in any specific actions or pursued any specific policies in the performance of its responsibilities which have exceeded its authority under the law or which have resulted in the inequitable or arbitrary treatment of taxpayers.

Under the internal Revenue Code, IRS is authorized to assess and collect taxes due the Federal Government. Although the Code provides general guidelines and various specific procedures to be followed by the Service in performing these functions, the Service is authorized to issue such additional guidelines and procedures as are necessary to implement the law. In accordance with this statutory authority, IRS has issued numerous policy and procedural statements, guidelines and rulings which are intended to govern the manner in which the Service and all its employees are to process taxpayer cases and responsibly deal with individual taxpayers.

"The Congress has granted the Internal Revenue Service extensive powers for the purpose of administering the tax laws," stated Chairman Rangel. "It is imperative, therefore, for the Congress to continuously monitor the policies and procedures of the Service in order to assure that these laws are properly administered and that taxpayers are treated fairly and equitably."

Testimony to be presented at this hearing will focus on a wide range of IRS examination and collection practices that concern taxpayers, as well as the management of taxpayer complaints. Issues to be discussed will include various collection practices such as liens, levies and seizures; the use of the administrative summons provision; the adequacy of current notice provisions; the operation of the appeals process; and the Service's mechanisms for handling and resolving taxpayer complaints and allegations of "abusive" conduct by IRS agents.

(1)

DETAILS FOR SUBMISSION OF REQUESTS TO BE HEARD

Cutoff date for requests to be heard.-Request to be heard must be submitted no later than the close of business Thursday, April 15, 1982.

All requests should be submitted in writing to John J. Salmon, Chief Counsel, Committee on Ways and Means, 1102 Longworth House Office Building, Washington, D.C. 20515. Notification will be made as promptly as possible after the cutoff date as to the scheduled appearance of each witness.

In view of the heavy schedule of the full Committee and the Subcommittee, and the limited time available for the taking of testimony, it will be necessary to allocate the time available to each witness for the presentation of direct oral testimony to five minutes. If requests to be heard exceed the amount of time available to the Subcommittee, it may not be possible to schedule everyone; however, every effort will be made to accommodate as many as possible. (Where a witness cannot be scheduled, the Subcommittee will accept a written statement for inclusion in the printed record of the hearing in lieu of a personal appearance.) If several witnesses wish to present similar testimony, they may be asked to select one spokesman for the group or have their testimony consolidated in some other way.

Written Statement in Lieu of Personal Appearance.-The Subcommittee will accept from any interested organization or person a written statement for inclusion in the printed record of the hearing in lieu of a personal appearance. These statements will be given the same full consideration as though the statement had been presented in person. In such cases a minimum of five copies of the statement should be submitted by the close of business June 1, 1982.

Contents of Request to be Heard.-The request to be heard must contain the following information:

(1) The name, address, telephone number and capacity in which the witness will appear; (2) a list of persons or organizations the witness represents or in whose employ the witness appears; and (3) a topical outline or summary of the testimony the witness proposes to present.

Witnesses scheduled to appear before the Subcommittee are required to submit 50 copies of their prepared statement to the Committee office, Room 1102, Longworth House Office Building, at least 24 hours in advance of their scheduled appearance. Failure to comply with this requirement may result in the witness being denied the opportunity to testify in person.

The Subcommittee reserves the right to refuse to publish statements that contain taxpayer return or return information as proscribed by Internal Revenue Code Section 6103.

Chairman RANGEL. The Oversight Subcommittee of the Committee on Ways and Means will come to order.

We have our distinguished member, John Duncan, sharing in these hearings. We expect other members.

The purpose of our hearing today is twofold. First, we want to examine those complaints taxpayers and members have about the manner in which the Internal Revenue Service is administering the tax laws.

Since its creation in 1975, the Oversight Subcommittee has established a tradition of actively monitoring the Internal Revenue Service with a view toward easing the often frustrating taxpayer experiences of filing tax returns, submitting to audits of their returns and paying delinquent taxes.

In addition, the subcommittee has assumed the responsibility for evaluating complaints that have to do with allegations of taxpayer harassment or IRS abuse of authority in order to determine whether there is need for corrective legislative or administrative action. A second purpose of this hearing is to review the existing policies and procedures of the Service with respect to audit, appeal, and collection activities, and to assure that the Service is adhering scrupulously to practices designed to safeguard taxpayer rights.

It is a matter of fundamental importance to the success of our tax system that the public be confident that the IRS treats all tax

payers fairly and equitably, and that it does so in accordance with clearly established policies and procedures.

These two purposes are, of course, closely related. Reviewing specific complaints helps us to determine whether there is a need to refine or modify existing policies. This also helps us to verify the adequacy of policies where the Service itself has taken corrective action or where the events complained of represent individual departures from policies that are otherwise entirely appropriate and responsible.

It is most important to ascertain what the general pattern of practice is since that is what we must deal with if we are to assure the responsible administration of the law.

All of this is not to say that serious problems don't exist or that individual breakdowns or abuses have not occurred. Indeed, this hearing is being conducted, in large measure, due to the overwhelming requests by Members of Congress urging this committee to examine specific practices of the IRS toward some of their constituents.

Many of the taxpayers who will be testifying this morning were referred to the committee by those members. It would surprise me, given the size and authority of the Service, if some of these breakdowns and abuses did not occur.

That is why we are here today, to find out what kinds of problems exist, how serious they are, and what kinds of corrective action might be taken.

The administration of our tax code is a sensitive task. No one understands this more clearly than the Service itself. I am certain the Commissioner and his staff fully realize the seriousness and importance of these hearings and what comes after them when we have examined the evidence arrived at and presented our conclusions. I will expect the Service to cooperate fully with the subcommittee, as it has in the past, in resolving any problems that may be disclosed in the course of these proceedings.

I want to also mention at this point that the Internal Revenue Code does not permit the public discussion of a particular taxpayer's case unless the taxpayer expressly consents to it. As a result, I want to caution all who will testify that written consent must be furnished to the subcommittee before it will be possible for members of the subcommittee or the Service to engage in discussion of a taxpayer's case.

Further, the subcommittee will not publish testimony about a particular taxpayer unless that taxpayer has furnished a written consent to the subcommittee to do so.

I emphasize that the purpose of these measures is to assure the taxpayer's right to privacy and to permit him to control the discussion as to whether any information about his case is to be made a matter of public record.

[Mr. Crane submitted the following:]

OPENING STATEMENT OF HON. PHILIP M. CRANE

Mr. Chairman, the hearing we are having today is noteworthy. Oversight of the Internal Revenue Service and the manner in which they collect the taxes for the nation is one of the most important and fundamental responsibilities of our commit

tee jurisdiction. It is crucial, therefore, that we fairly and objectively examine IRS practices and policies.

This is especially so because of the furor that they have caused in recent years. Overzealous seizure of property without due process and unnecessary snooping into the affairs of individuals and organizations are merely two of the numerous complaints that have come to my attention.

There can be no question taxes must be paid. This is a basic duty of citizenship. However, for honest men and women to be afforded fewer rights at times than common criminals is an injustice which should not be allowed to occur. Let us hope that today's hearing will uncover some of the causes of the complaints which we have heard and that we may advise Congress of possible reforms necessary to deal with them.

Chairman RANGEL. Mr. Duncan?

Mr. DUNCAN. Thank you, Mr. Chairman.

I have no opening statement, but may I recognize a group of high school students from a high school in Knoxville, my hometown, somewhere in the room.

Chairman RANGEL. Let me join with you and welcome these young people to listen to our deliberations. I do hope that life is so successful for them that they will make a lot of money, but never have to be harassed by the IRS.

Mr. DUNCAN. Thank you, Mr. Chairman.

Chairman RANGEL. Welcome to the deliberations.

Congressman Don Young, who has demonstrated a sensitive concern about the problem of taxpayer abuse, has agreed to lead off our testimony today.

Your full statement, Congressman, will be made a part of our record. You may proceed as you find most comfortable.

STATEMENT OF HON. DON YOUNG, A REPRESENTATIVE IN
CONGRESS FROM THE STATE OF ALASKA

Mr. YOUNG. Thank you, Mr. Chairman, and members of the committee. I would like to submit my prepared statement to the committee for the record, and, with your permission, I will summarize that statement at this time.

Chairman RANGEL. Without objection.

Mr. YOUNG. Let me compliment you. You are a new chairman of this subcommittee, from the last time I appeared before this subcommittee for oversight hearings on the IRS. I believe that oversight hearings are very beneficial and are necessary to recognize that there is definitely a problem within the American citizenry today concerning the attitude and conduct of the IRS.

Historically, no one approves of the tax collector. This goes clear back into the period of time of King George when the kings and their collectors put forth into the field against citizen protest to collect grains to fill their granary. Even before that time, there has been conflict between tax collector and taxpayers.

Because of this conflict and because the IRS has extraordinary powers, oversight of tax collection is important. Until 1975, I do not believe the Congress had any oversight hearing concerning the conduct of the IRS. There have only been two hearings since 1975.

I congratulate you for holding this hearing. I believe it is necessary any time an agency is created by the Congress. If Congress shows lack of interest they do become somewhat zealous in their approach to the collection of taxes.

« iepriekšējāTurpināt »