Taxpayer Bill of Rights 3

TABLE OF CONTENTS:

Title I: Taxpayer Rights

Title II: Taxpayer Education, Notice, and Resources

Taxpayer Bill of Rights 3 - Title I: Taxpayer Rights - Directs the Secretary of the Treasury to incorporate (taxpayer) examination selection criteria into a specified taxpayer rights statement.

(Sec. 102) Amends the Internal Revenue Code to authorize civil damages for negligence in collection actions.

(Sec. 103) Directs the Secretary to develop expedited freedom of information procedures for certain high-profile requests of public concern.

(Sec. 104) Eliminates the penalty for failure to file or pay while a payment installment agreement is in effect.

(Sec. 105) Grants certain taxpayers the right to an installment agreement for tax liabilities under $10,000.

(Sec. 106) Requires the Internal Revenue Service (IRS) to: (1) develop procedures to catalog and review taxpayer complaints; and (2) establish a related toll-free telephone number.

(Sec. 107) Suspends the statute of limitations for filing a refund claim for certain taxpayers who are unable to manage their financial affairs because of a medical impairment.

(Sec. 108) Prohibits the use of financial status or economic reality techniques without a reasonable indication that a likelihood of unreported income exists.

(Sec. 109) Requires deficiency notices to specify deadlines for filing Tax Court petitions.

(Sec. 110) Authorizes a refund or credit by the Tax Court in certain deficiency proceedings or in instances of an uncontested overpayment.

(Sec. 111) Requires IRS employees to be instructed that they may not coerce a taxpayer through audit threat into a Tip Reporting Alternative Commitment Agreement.

(Sec. 112) Requires: (1) court approval for IRS seizure of taxpayer property; and (2) for seizure of a principal residence, a showing that all other payment options have been exhausted and that a judicial writ of execution has been issued.

(Sec. 113) Directs the Taxpayer Advocate, in determining whether to issue a taxpayer assistance order, to consider whether: (1) there is an immediate threat of adverse action; (2) there has been resolution delay; and (3) the taxpayer will suffer irreparable injury.

(Sec. 114) Increases the amount exempt from levy for: (1) fuel, provisions, furniture, and personal effects; and (2) books and tools of a trade, business, or profession.

(Sec. 115) Directs the Secretary to develop and publish guidelines for national and local allowances to ensure that taxpayers entering into offers-in-compromise have adequate means for basic living expenses.

(Sec. 116) Increases the overpayment rate for noncorporation taxpayers.

(Sec. 117) Prohibits levy on a taxpayer's wages or property: (1) while an offer-in-compromise or installment agreement is pending or being appealed; or (2) if requested by the taxpayer for certain assessments.

(Sec. 118) Applies specified fair debt collection practices to the IRS, and subjects their violation to existing civil action provisions.

(Sec. 119) Allows civil actions by persons other than taxpayers for unauthorized IRS collection activities.

(Sec. 120) Authorizes the Secretary to enter into administrative agreements with State tax authorities.

Title II: Taxpayer Education, Notice, and Resources - Sets forth provisions regarding: (1) explanation of taxpayer rights; (2) toll-free customer telephone lines; (3) taxpayer interview procedures; (4) explanation of joint and several liability and of appeals and collection process; and (5) statute of limitation extensions.

(Sec. 208) Provides for independent operation of local Taxpayer Advocate offices.