Federal Register / Vol. 62, No. 250 / Wednesday, December 31, 1997 / Proposed Rules 68241

of the Federal Aviation Regulations (14 CFR

21.197 and 21.199) to operate the airplane to

a location where the requirements of this AD

can be accomplished.

(c) An alternative method of compliance or

adjustment of the compliance time that

provides an equivalent level of safety may be

approved by the Manager, Small Airplane

Directorate, Aircraft Certification Service,

1201 Walnut, suite 900, Kansas City,

Missouri 64106. The request shall be

forwarded through an appropriate FAA

Maintenance Inspector, who may add

comments and then send it to the Manager,

Small Airplane Directorate.

Note 2: Information concerning the

existence of approved alternative methods of

compliance with this AD, if any, may be

obtained from the Small Airplane

Directorate.

(d) All persons affected by this directive

may obtain copies of the document referred

to herein upon request to Extra Flugzeugbau,

GmbH, Schwarze Heide 21, 46569 Hunxe,

Germany; or may examine this document at

the FAA, Central Region, Office of the

Regional Counsel, Room 1558, 601 E. 12th

Street, Kansas City, Missouri 64106.

Note 3: The subject of this AD is addressed

in German AD 92–199 Extra, dated April 13,

1992.

Issued in Kansas City, Missouri, on

December 23, 1997.

Michael Gallagher,

Manager, Small Airplane Directorate, Aircraft

Certification Service.

[FR Doc. 97–34046 Filed 12–30–97; 8:45 am]

BILLING CODE 4910–13–U

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 301

[REG–100841–97]

RIN 1545–AU97

Agreements for Payment of Tax

Liability in Installments

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Notice of proposed rulemaking.

SUMMARY: This document contains

proposed regulations relating to

terminations of agreements for the

payment of tax liabilities in installments

(installment agreements). The proposed

regulations reflect changes made to

section 6159 of the Internal Revenue

Code of 1986 (Code) by the Taxpayer

Bill of Rights 2. The proposed

regulations provide a procedure for

requesting an independent

administrative review of an alteration,

modification, or termination of an

installment agreement.

DATES: Written comments and requests

for a public hearing must be received by

March 2, 1998.

ADDRESSES: Send submissions to:

CC:DOM:CORP:R (REG–100841–97),

room 5226, Internal Revenue Service,

POB 7604, Ben Franklin Station,

Washington, DC 20044. Submissions

may be hand delivered between the

hours of 8 a.m. and 5 p.m.:

CC:DOM:CORP:R (REG–100841–97),

Courier’s Desk, Internal Revenue

Service, 1111 Constitution Avenue NW.,

Washington, DC. Alternatively,

taxpayers may submit comments

electronically via the Internet by

selecting the ‘‘Tax Regs’’ option on the

IRS Home Page, or by submitting

comments directly to the IRS Internet

site at http://www.irs.ustreas.gov/prod/

taxllregs/comments.html.

FOR FURTHER INFORMATION CONTACT:

Concerning the regulations, Kevin B.

Connelly, (202) 622–3640 (not a toll-free

number).

SUPPLEMENTARY INFORMATION:

Background

This document contains proposed

amendments to the Procedure and

Administration Regulations (26 CFR

part 301) relating to installment

agreements under section 6159 of the

Code. Section 201 of the Taxpayer Bill

of Rights 2 (TBOR2), Pub. L. No. 104–

168, 110 Stat. 1452 (1996), amended

section 6159 to provide that the

Secretary may not alter, modify, or

terminate an installment agreement

unless notice of such action is given not

later than 30 days before the date of the

action. The notice must explain why the

Secretary intends to take the proposed

action. Section 202 of TBOR2 provides

that the Secretary shall provide an

independent administrative review of

the termination of an installment

agreement upon request of the taxpayer.

These proposed regulations reflect the

change made by Section 202 of TBOR2.

In addition, although the IRS rarely

alters or modifies an installment

agreement, the proposed regulations

give taxpayers the right to an

independent administrative review of

alterations or modifications.

Explanation of Provisions

Sections 201 and 202 of TBOR2

amended section 6159 of the Code with

respect to installment agreements.

Section 201 provides that the Secretary

may not alter, modify, or terminate an

installment agreement unless notice of

such action is given to the taxpayer at

least 30 days before the action. The

notice must explain why the Secretary

intends to take the proposed action.

Notice is not necessary if collection of

the tax to which the installment

agreement relates is in jeopardy.

Prior to the enactment of TBOR2,

Section 6159 of the Code required

notice only if the Internal Revenue

Service intended to alter, modify, or

terminate an installment agreement

because of a change in the taxpayer’s

financial condition. Section 301.6159–

1(c)(4) of the regulations that are being

amended by this notice of proposed

rulemaking, however, already requires

30 days notice whenever the IRS

intends to alter, modify, or terminate

any agreement, regardless of the reason

for the action. The only exception to

this rule is that no notice is required if

collection of the tax to which the

installment agreement relates is in

jeopardy. In addition, existing

paragraph (c)(4) requires the notice to

explain the reason for the intended

action. In light of existing paragraph

(c)(4), the regulations do not have to be

amended to reflect section 201 of

TBOR2.

Section 202 of TBOR2 provides that,

upon request by a taxpayer, the

Secretary shall provide an independent

administrative review of the termination

of an installment agreement. In

addition, although the IRS rarely alters

or modifies an installment agreement,

the proposed regulations grant taxpayers

the right to request an independent

administrative review of alterations or

modifications. Procedures for requesting

an independent administrative review

are contained in the proposed

regulations.

When the Internal Revenue Service

intends to terminate an installment

agreement, it currently sends the

taxpayer a written notice of its intent.

The notice (1) informs the taxpayer why

the Internal Revenue Service intends to

terminate the agreement, (2) notifies the

taxpayer that the Internal Revenue

Service intends to levy the taxpayer’s

property, (3) explains that the taxpayer

has a right to request an independent

review of the Internal Revenue Service’s

decision, and (4) tells the taxpayer to

call the telephone number listed on the

notice within 30 days of the date of the

notice if the taxpayer wishes to stay

collection and request the Internal

Revenue Service to review its decision.

If the taxpayer timely calls the

telephone number listed on the notice,

the employee attempts to resolve the

case with the taxpayer. If the taxpayer

and the employee are not able to resolve

the case to the taxpayer’s satisfaction, a

conference is set up with a manager. If

the manager and the taxpayer are unable

to resolve the case, the manager

forwards the case to Appeals for an
68242 Federal Register / Vol. 62, No. 250 / Wednesday, December 31, 1997 / Proposed Rules

independent administrative review.

Absent jeopardy, collection action is

stayed until the appeals officer has

informed the taxpayer of a decision.

The proposed regulations provide

that, if a taxpayer disagrees with a

determination to alter, modify, or

terminate an installment agreement, the

taxpayer may initiate an independent

administrative review of the

determination by calling the telephone

number listed on the notice within 30

days of the date of the notice. This will

set the review process in motion.

Special Analyses

It has been determined that this notice

of proposed rulemaking is not a

significant regulatory action as defined

in EO 12866. Therefore, a regulatory

assessment is not required. It also has

been determined that section 553(b) of

the Administrative Procedure Act (5

U.S.C. chapter 5) does not apply to these

regulations, and because the regulation

does not impose a collection of

information on small entities, the

Regulatory Flexibility Act (5 U.S.C.

chapter 6) does not apply. Pursuant to

section 7805(f) of the Internal Revenue

Code, this notice of proposed

rulemaking will be submitted to the

Chief Counsel for Advocacy of the Small

Business Administration for comment

on its impact on small business.

Comments and Requests for a Public

Hearing

Before these proposed regulations are

adopted as final regulations,

consideration will be given to any

written comments that are submitted

timely (a signed original and eight (8)

copies) to the IRS. All comments will be

available for public inspection and

copying. A public hearing may be

scheduled if requested in writing by a

person that timely submits written

comments. If a public hearing is

scheduled, notice of the date, time, and

place for the hearing will be published

in the Federal Register.

Drafting Information

The principal author of these

regulations is Kevin B. Connelly, Office

of Assistant Chief Counsel (General

Litigation) CC:EL:GL, IRS. However,

other personnel from the IRS and

Treasury Department participated in

their development.

List of Subjects in 26 CFR Part 301

Employment taxes, Estate taxes,

Excise taxes, Gift taxes, Income taxes,

Penalties, Reporting and recordkeeping

requirements.

Proposed Amendments to the

Regulations

Accordingly, 26 CFR part 301 is

proposed to be amended as follows:

PART 301—PROCEDURE AND

ADMINISTRATION

Paragraph 1. The authority citation

for part 301 continues to read in part as

follows:

Authority: 26 U.S.C. 7805 * * *

Par. 2. Section 301.6159–1 is amended by

revising paragraphs (c)(4) and (g) to read as

follows:

§ 301.6159–1 Agreements for payment of

tax liability in installments.

* * * * *

(c) * * *

(4) Notice. Unless the director

determines that collection of the tax is

in jeopardy, the director will notify the

taxpayer in writing at least 30 days

before altering, modifying, or

terminating an installment agreement

pursuant to paragraph (c)(1) or (2) of

this section. A notice provided pursuant

to this paragraph must briefly describe

the reason for the intended alteration,

modification, or termination. If the

taxpayer disagrees with the director’s

decision to terminate, alter, or modify

the installment agreement, the taxpayer

has the right to an independent

administrative review. The taxpayer

may initiate an independent

administrative review by calling the

telephone number listed on the notice

within 30 days of the date of the notice.

If, upon calling the telephone number

listed on the notice, the dispute is not

resolved to the taxpayer’s satisfaction,

the taxpayer must speak with a

manager. If, after speaking with a

manager, the dispute still is not resolved

to the taxpayer’s satisfaction, the

taxpayer may request the Office of

Appeals to independently review the

decision. The Office of Appeals shall

conduct a review to determine whether

the facts and circumstances warrant the

alteration, modification, or termination

of the taxpayer’s installment agreement.

* * * * *

(g) Effective date. This section is

applicable December 23, 1994, except

that paragraph (c)(4) of this section is

applicable on the date final regulations

are published in the Federal Register.

Michael P. Dolan,

Deputy Commissioner of Internal Revenue.

[FR Doc. 97–33790 Filed 12–30–97; 8:45 am]

BILLING CODE 4830–01–U

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 301

[Reg–251502–96]

RIN 1545–AU68

Civil Cause of Action for Certain

Unauthorized Collection Actions

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Notice of proposed rulemaking.

SUMMARY: This document contains

proposed regulations relating to civil

causes of action for damages caused by

unlawful collection actions of officers

and employees of the Internal Revenue

Service (IRS). The proposed regulations

reflect amendments made by the

Taxpayer Bill of Rights 2. The proposed

regulations affect all taxpayers who file

civil actions for damages caused by

unlawful collection actions of officers or

employees of the IRS.

DATES: Written comments and requests

for a public hearing must be received by

March 2, 1998.

ADDRESSES: Send submissions to:

CC:DOM:CORP:R (Reg–251502–96),

Room 5226, Internal Revenue Service,

POB 7604, Ben Franklin Station,

Washington, DC 20044. Submissions

may be hand delivered between the

hours of 8 a.m. and 5 p.m. to:

CC:DOM:CORP:R (Reg–251502–96),

Courier’s Desk, Internal Revenue

Service, 1111 Constitution Avenue NW.,

Washington DC. Alternatively,

taxpayers may submit comments

electronically via the Internet by

selecting the ‘‘Tax Regs’’ option on the

IRS Home Page, or by submitting

comments directly to the IRS Internet

site at http://www.irs.ustreas.gov/prod/

taxllregs/comments.html.

FOR FURTHER INFORMATION CONTACT:

Kevin B. Connelly, (202) 622-3640 (not

a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

This document contains proposed

amendments to the Procedure and

Administration Regulations (26 CFR

part 301) relating to civil actions for

damages caused by unlawful collection

actions of officers or employees of the

IRS. The Taxpayer Bill of Rights 2

(TBOR2), Public Law 104–168, 110 Stat.

1465 (1996), amended section 7433 of

the Internal Revenue Code of 1986

(Code) by raising the cap on the amount

a taxpayer may be awarded for damages

caused by unlawful collection actions

from $100,000 to $1,000,000. Under