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A. IRS Taxpayer Services

The Internal Revenue Service currently provides a number of taxpayer services. These services are provided in three major ways:

(1) telephone assistance,

(2) walk-in assistance, and

(3) taxpayer information and education programs.

The Problem Resolution Program (PRP) was established within the IRS for the purpose of providing special attention for persistent taxpayer problems and complaints that are not resolved in a prompt or proper manner through normal procedures. The Taxpayer Ombudsman, an IRS employee, administers the Problem Resolution Program and exercises other functions on behalf of taxpayers.

B. Tax Liens

Under present law, if a taxpayer refuses to pay tax after a tax assessment has been made and the payment has been demanded, the tax owed becomes a lien in favor of the United States on all property owned by the taxpayer. Present law contains very specific and detailed rules concerning lien priorities and the recordation of liens. There are no administrative procedures for appealing the imposition of a Federal tax lien. (However, there are several opportunities for appeal prior to the assessment of tax.)

C. Seizure of Property for the Collection of Taxes

In general, if a person who is liable to pay tax, after an assessment has been made, neglects or refuses to do so within ten days after notice and demand, the tax may be collected by levy upon that person's property. However, there are several types of property, including a portion of a taxpayer's wages, that are exempt from levy. The Secretary of the Treasury is not required to obtain a court order before making a levy.

D. Issuance of Treasury Regulations

Present law does not impose time limitations upon the issuance of Treasury Regulations. Often, the regulations process can take a substantial amount of time because of the number of levels of review involved, the resource limitations of the Treasury Department, and the input that must be received from persons within and without the Treasury Department.

E. Installment Payments of Estimated Taxes by Individuals

Present law generally requires individuals to make quarterly declarations and payments of estimated taxes if their tax liability is expected to exceed withheld taxes by $100 or more. Farmers and fishermen generally may wait until January 15 of the following year to declare and pay estimated tax.

F. Time for Furnishing Forms W-2 to Terminated Employees

In general, employees who terminate employment prior to the close of the calendar year must be provided with Forms W-2 at the time of their last salary payment.