Taxpayers' Protection Act of 1987

Taxpayers' Protection Act of 1987 - Requires the Secretary of the Treasury (Secretary) to prepare a statement setting forth in nontechnical terms: (1) the rights and obligations of a taxpayer and of the Internal Revenue Service (IRS) during a tax audit; (2) the procedures by which a taxpayer may appeal adverse decisions, prosecute refund claims, and file complaints; and (3) the procedures that the IRS may use in enforcing revenue laws. Directs the Secretary to transmit drafts of such statement to specified congressional committees and to distribute the final statement to all taxpayers with tax forms sent by the IRS.

Amends the Internal Revenue Code to require IRS personnel, upon taxpayer request, to conduct interviews at a time and place convenient to both the taxpayer and the personnel.

Extends from ten to 30 days the period between the required notice to a person who neglects or refuses to pay tax liability and a levy on such person's salary, wages, or other property. Specifies information that must be incorporated in such notice, including possible alternative actions and the appropriate appeals procedures. Adds to the circumstances triggering termination of such a levy: (1) an agreement between the taxpayer and the Secretary for payment of the liability; and (2) the Secretary's determination that the taxpayer's financial condition precludes enforceability of the liability.

Revises the list of property exempt from levy to increase the exempt amount permitted for certain personal effects, the property of a business, and wages.

Requires the Secretary to abate in full any deficiency, including penalty or interest, completely attributable to erroneous advice given to a taxpayer by an IRS officer or employee in response to such taxpayer's specific inquiry.

Directs IRS officers and employees, when giving oral advice to a person, to inform the person that the contents of such communication are not binding on the IRS.

Authorizes the IRS Ombudsman, upon application filed by a taxpayer, to issue a Taxpayer Assistance Order if, in the determination of the Ombudsman: (1) the taxpayer is suffering or is about to suffer from an unusual or irreparable loss as a result of the manner in which the internal revenue laws are being administered by the Secretary; and (2) the Secretary has failed to carry out duties or has violated any provision of law. Allows the terms of a Taxpayer Assistance Order to require the Secretary to release property of the taxpayer levied upon or to cease or refrain from certain actions. Requires the Secretary to obey any Taxpayer Assistance Order issued by the Ombudsman.

Exempts from levy: (1) welfare payments under title IV (aid to families with dependent children) of the Social Security Act; (2) supplemental security income under title XVI of the Social Security Act (aid for the aged, blind, and disabled); (3) State or local government public assistance programs whose eligibility requirements are based on income or need; and (4) unemployment training allowances under the Job Training Partnership Act.

Entitles a taxpayer, in the event of a wrongful levy on property, to the prompt return of the property in question or, if the property has been sold, to the greater of the amount received from its sale or its fair market value immediately preceding the levy.