WASHINGTON -- The Senate Finance Committee today held its fifth and final IRS restructuring. The following is the opening statement of Chairman William V. Roth, Jr.:

"Today, we begin our fifth hearing on restructuring the Internal Revenue Service. During our first four hearings we heard from Secretary Rubin, Commissioner Rossotti, several former IRS Commissioners, tax practitioners, the General Accounting Office, the Deputy Inspector General of Treasury, and perhaps most importantly of all -- we heard from taxpayers.

"This will be our last hearing in preparation to draft IRS restructuring legislation. We will, however, continue with oversight hearings in the future.

"Our focus today will be on management of the Internal Revenue Service. We will hear from management experts and representatives of IRS front line employees, professional managers, and senior executives. In light of many of the concerns that have been expressed in past hearings, I look forward to the testimony of these witnesses.

"I recall one agency employee putting the importance of management in very simple terms. She said: "Upper management determines the climate and policies for applying tactics and tax laws, therefore it is at this level that the greatest impact on the taxpaying public is affected."

"Given this employee's logic -- logic I agree with -- it could be said that, from a practical standpoint, today's hearings will be our most important yet. When it comes to management, "The buck stops there." Good managers yield good employees. If they are knowledgeable, service oriented, and motivated by the correct principles, their employees will be knowledgeable, service oriented, and motivated by the same. On the other hand, bad managers will yield bad employees.

"And this concerns me."

"I was concerned to hear the testimony of an 18-year revenue officer -- an offer in compromise specialist -- who said, 'The pressure is coming from management. We are told to ignore the law and do what we are told to do. We are encouraged to ignore any issues that might slow down the collection process.... The hostility in the work place is becoming unbearable.'

"This is troubling, and it is our intention today to look at restructuring proposals that will address these issues. Many remedies are already gaining broad support. For example, I agree with the members of the National Commission on Restructuring the IRS that there must be accountability and continuity of management at the IRS.

"The concept of an oversight board with staggered terms and an IRS Commissioner with a fixed term was intended to provide continuity of management, a fresh 'outsider's view' by private sector experts, and accountability. If a board concept is ultimately implemented, it would be to ensure that taxpayers are treated fairly, honorably, and with efficient and effective service.

"It is anticipated that an oversight board would be able to expose many of the abuses and misuses of power that we've listened to in our oversight hearings. To do this, however, the board should have oversight authority. Oversight does not mean intervening in particular taxpayer cases, but it does mean having enough information to prevent some of the ills that have plagued this important agency.

"Certainly, there are many issues that need to be addressed concerning the board. For example: Who should and should not be on the board? What are its benefits and pitfalls? Would a board really foster accountability or merely distract those responsible for managing the agency?

"Likewise, there are many questions regarding what IRS management needs to turn the agency around. There are questions related to what kind of flexibilities the Commissioner needs to manage the agency. For example, do the flexibilities included in the bill introduced by Senators Grassley and Kerrey, Senator Moynihan's Administration bill, or the House passed bill provide Commissioner Rossotti with the tools he needs? These are important questions, and today I look forward to finding some answers."