Elevate the Importance of the Taxpayer Bill of Rights by Redesignating It as Section 1…

SUMMARY

• Problem: The IRS is arguably the federal agency that Americans fear the most. Without a court order, it can garnish a taxpayer’s wages, levy against a taxpayer’s bank account, and file a Notice of Federal Tax Lien against a taxpayer’s property to collect an IRS-determined tax debt. Taxpayers fear the IRS may take these actions erroneously or without regard to taxpayer rights.

• Solution: Redesignate the Taxpayer Bill of Rights (TBOR) as Section 1 of the IRC. While partly symbolic, this change would send an important message to U.S. taxpayers and IRS employees alike that Congress expects IRS employees to respect taxpayer rights and considers them foundational for effective tax administration.

PRESENT LAW

IRC § 7803(a)(3) requires the Commissioner to “ensure that employees of the Internal Revenue Service are familiar with and act in accord with taxpayer rights as afforded by other provisions of this title [the Internal Revenue Code], including –

(A) the right to be informed, (B) the right to quality service, (C) the right to pay no more than the correct amount of tax, (D) the right to challenge the position of the Internal Revenue Service and be heard, (E) the right to appeal a decision of the Internal Revenue Service in an independent forum, (F) the right to finality, (G) the right to privacy, (H) the right to confidentiality, (I) the right to retain representation, and (J) the right to a fair and just tax system.” ¹

REASONS FOR CHANGE

Taxpayer rights are the foundation for effective tax administration. The U.S. tax system is frequently characterized as a system of “voluntary compliance.” While taxpayers ultimately may face penalties for noncompliance, our system relies in the first instance on the willingness of taxpayers to file returns on which they self-report their incomes (some of which is not reported to the IRS by third parties and is therefore difficult for the IRS to detect in the absence of self-reporting) and to pay the required tax.

1 This provision was enacted as part of the Consolidated Appropriations Act, 2016. See Pub. L. No. 114-113, Div. Q, § 401(a), 129 Stat. 2242, 3117 (2015). These ten rights are generally referred to as the “Taxpayer Bill of Rights,” although the statute does not use that term.

National Taxpayer Advocate 2026 Purple Book 1

Strengthen Taxpayer Rights

In recent years, more than 160 million individuals and more than 13 million business entities have filed income tax returns annually, and they are entitled to be treated with respect. Not only is making clear that taxpayers possess rights the right thing to do, but TAS research suggests that when taxpayers have confidence the tax system is fair, they are more likely to comply voluntarily, which may translate into enhanced revenue collection. ²

When we first proposed codifying the TBOR in 2007, we did not recommend a specific location for it in the Internal Revenue Code (IRC). ³ In codifying the TBOR, Congress placed the language in IRC § 7803(a), which deals with the appointment and duties of the Commissioner.

The National Taxpayer Advocate recommends the ten rights that make up the TBOR and are codified in IRC § 7803(a)(3) be relocated and recodified as Section 1 of the IRC. Doing so would make a strong and important statement about the value Congress places on taxpayer rights and its expectation that IRS employees must respect and act in accordance with those rights.

RECOMMENDATION

• Move § 1 of the IRC to place it before Subtitle A and amend it to read as follows: ⁴