Federal Register / Vol. 74, No. 142 / Monday, July 27, 2009 / Proposed Rules 36973 

1The comment must be accompanied by an 

explicit request for confidential treatment, 

including the factual and legal basis for the request, 

and must identify the specific portions of the 

comment to be withheld from the public record. 

The request will be granted or denied by the 

Commission’s General Counsel, consistent with 

applicable law and the public interest. See 

Commission Rule 4.9(c), 16 CFR 4.9(c). 

credit or debit card number. Comments 

also should not include any sensitive 

health information, such as medical 

records or other individually 

identifiable health information. In 

addition, comments should not include 

any ‘‘[t]rade secret or any commercial or 

financial information which is obtained 

from any person and which is privileged 

or confidential. . . ,’’ as provided in 

Section 6(f) of the FTC Act, 15 U.S.C. 

46(f), and Commission Rule 4.10(a)(2), 

16 CFR 4.10(a)(2). Comments containing 

material for which confidential 

treatment is requested must be filed in 

paper form, must be clearly labeled 

‘‘Confidential,’’ and must comply with 

FTC Rule 4.9(c).1

A comment filed in paper form 

should include the ‘‘Cooling-Off Rule 

Regulatory Review, 16 CFR 429, 

Comment, Project No. P087109’’ 

reference both in the text and on the 

envelope, and should be mailed or 

delivered to the following address: 

Federal Trade Commission/Office of the 

Secretary, Room H-135 (Annex M), 600 

Pennsylvania Avenue, N.W., 

Washington, D.C. 20580. The FTC is 

requesting that any comment filed in 

paper form be sent by courier or 

overnight service, if possible, because 

U.S. postal mail in the Washington area 

and at the Commission is subject to 

delay due to heightened security 

precautions. 

You also may consider submitting 

your comments in electronic form. 

Comments filed in electronic form 

should be submitted by following the 

instructions on the web-based form at 

the weblink (https:// 

secure.commentworks.com/ftc-coolingoffrulereview). To ensure that the 

Commission considers an electronic 

comment, you must file it on the webbased form at (https:// 

secure.commentworks.com/ftc-coolingoffrulereview). If this Notice appears at 

(http://www.regulations.gov/search/ 

index.jsp), you also may file an 

electronic comment through that 

website. The Commission will consider 

all comments that regulations.gov 

forwards to it. You also may visit the 

FTC website at (http://www.ftc.gov) to 

read the Notice and the news release 

describing it. 

The Federal Trade Commission Act 

(‘‘FTC Act’’) and other laws the 

Commission administers permit the 

collection of public comments to 

consider and use in this proceeding as 

appropriate. The Commission will 

consider all timely and responsive 

public comments that it receives, 

whether filed in paper or electronic 

form. Comments received will be 

available to the public on the FTC 

website, to the extent practicable, at 

(http://www.ftc.gov./os/ 

publiccomments.shtm). As a matter of 

discretion, the FTC makes every effort to 

remove home contact information for 

individuals from the public comments it 

receives before placing those comments 

on the FTC website. To read our policy 

on how we handle the information you 

submit – including routine uses 

permitted by the Privacy Act – please 

review the FTC’s privacy policy, at 

(http://www.ftc.gov/ftc/privacy.shtm). 

FOR FURTHER INFORMATION CONTACT: 

Sana Coleman Chriss, Attorney, (404) 

656-1364, Federal Trade Commission, 

Southeast Region, 225 Peachtree Street, 

NE, Suite 1500, Atlanta, Georgia 30303. 

SUPPLEMENTARY INFORMATION: The 

Commission’s April 21, 2009 Federal 

Register notice sought comments on a 

number of general issues, including the 

continuing need for the Rule, its 

economic impact, and the effect of any 

technological, economic, or industry 

changes on the Rule. 

The comment period closed on June 

22, 2009. Three comments were 

received during the comment period. 

On that date, the Commission also 

received a request from Consumers for 

Auto Reliability and Safety, Consumers 

Union, and the National Consumer Law 

Center to extend the comment period for 

an additional sixty days. To provide all 

interested parties with additional time 

for filing comments, the Commission 

has decided to reopen the comment 

period. The Commission believes that 

the benefit of enhancing the record by 

reopening the comment period 

outweighs any delay. Accordingly, the 

Commission has decided to reopen the 

comment period for sixty days. 

By direction of the Commission. 

Donald S. Clark 

Secretary 

[FR Doc. E9–17758 Filed 7–24–09: 2:30 pm] 

BILLING CODE 6750–01–S 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 301 

[REG–152166–05] 

RIN 1545–BF33 

Taxpayer Assistance Orders 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Withdrawal of notice of 

proposed rulemaking and notice of 

proposed rulemaking. 

SUMMARY: This document withdraws the 

notice of proposed rulemaking 

published on April 19, 1996, in the 

Federal Register and contains proposed 

regulations relating to the issuance of 

Taxpayer Assistance Orders (TAOs). 

The IRS is issuing these proposed 

regulations to provide guidance relating 

to the issuance of a TAO. These 

proposed regulations are necessary 

because the existing regulations do not 

reflect changes to the law made by the 

Taxpayer Bill of Rights II (TBOR 2), the 

Internal Revenue Service Restructuring 

and Reform Act of 1998 (RRA 98), the 

Community Renewal Tax Relief Act of 

2000, and the American Jobs Creation 

Act of 2004 (AJCA). The action taken in 

these proposed regulations will affect 

IRS employees in cases where a TAO is 

being considered or issued. 

DATES: Written or electronic comments 

and requests for a public hearing must 

be received by October 26, 2009. 

ADDRESSES: Send submissions to: 

CC:PA:LPD:PR (REG–152166–05), room 

5205, Internal Revenue Service, P.O. 

Box 7604, Ben Franklin Station, 

Washington, DC 20224. Submissions 

may be hand delivered Monday through 

Friday between the hours of 8 a.m. and 

4 p.m. to CC:PA:LPD:PR (REG–152166– 

05), Courier’s Desk, Internal Revenue 

Service, 1111 Constitution Avenue, 

NW., Washington, DC 20044, or sent 

electronically via the Federal 

eRulemaking Portal at http:// 

www.regulations.gov/ (IRS REG– 

152166–05). 

FOR FURTHER INFORMATION CONTACT: 

Concerning the proposed regulations, 

Janice R. Feldman, (202) 622–8488; 

concerning submissions of comments, 

Richard.A.Hurst@irscounsel.treas.gov 

(202) 622–7180 (not toll-free numbers). 

SUPPLEMENTARY INFORMATION: 

Background 

Section 7811 of the Internal Revenue 

Code (Code) authorizes the NTA to issue 

a TAO when a taxpayer is suffering or 

is about to suffer a significant hardship 


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36974 Federal Register / Vol. 74, No. 142 / Monday, July 27, 2009 / Proposed Rules 

as a result of the manner in which the 

internal revenue laws are being 

administered by the IRS and the law 

and the facts support relief. A TAO may 

be issued to direct that the operating 

division or function take a specific 

action, cease a specific action, or refrain 

from taking a specific action or to order 

the IRS to review at a higher level, 

expedite consideration of, or reconsider 

a taxpayer’s case. The IRS will comply 

with a TAO unless it is appealed and 

then modified or rescinded by the 

Commissioner, the Deputy 

Commissioner, or the NTA. Appeal 

procedures are provided in the Internal 

Revenue Manual (IRM). 

Proposed regulations were published 

on April 19, 1996, in the Federal 

Register (61 FR 17265). The proposed 

regulations limited the authority to 

modify or rescind TAOs to the 

Ombudsman, the Commissioner, and 

the Deputy Commissioner, and, with the 

written authorization of one of these 

officials, a district director, a service 

center director, a compliance center 

director, a regional director of appeals 

(director), or the superiors of a director. 

Following the publication of the 

proposed regulations, Congress enacted 

TBOR 2, Public Law 104–168, 110 Stat. 

1452 (1996), which, among other things, 

authorized only the Taxpayer Advocate, 

the Commissioner, or the Deputy 

Commissioner to modify or rescind a 

TAO. In light of the enactment of TBOR 

2, this document withdraws the 

proposed regulations published in the 

Federal Register on April 19, 1996. 

This document also contains 

proposed amendments to the Procedure 

and Administration Regulations (26 CFR 

part 301) relating to TAOs under section 

7811. Temporary regulations (TD 8246) 

were published on March 22, 1989, in 

the Federal Register (54 FR 11699). 

Final regulations (TD 8403) were 

published on March 23, 1992, in the 

Federal Register (57 FR 9975). After the 

final regulations were published, 

sections 101 and 102 of TBOR 2, Public 

Law 104–168, 110 Stat. 1452 (1996), 

amended section 7811 by changing the 

name of the Ombudsman to the 

Taxpayer Advocate, providing that 

TAOs may order the IRS to take certain 

affirmative actions, and restricting who 

may modify or rescind a TAO. Section 

1102 of RRA 98, Public Law 105–206, 

112 Stat. 685 (1998), further amended 

section 7811, by providing examples of 

significant hardship and replacing 

‘‘Taxpayer Advocate’’ with ‘‘National 

Taxpayer Advocate.’’ Section 881(c) of 

AJCA, Public Law 108–357, 118 Stat. 

1418 (2004) clarified that a TAO applies 

to personnel performing services under 

a qualified tax collection contract to the 

same extent as it applies to IRS 

personnel. Thus, this document 

contains a new notice of proposed 

rulemaking implementing the 

amendments under section 7811 

pursuant to the enactment of TBOR 2, 

RRA 98, the Community Renewal Tax 

Relief Act of 2000, and AJCA and also 

to provide guidance on issues that have 

arisen in the administration of section 

7811. Section 301.7811–1(e) of the 

existing regulations, which concerns the 

suspension of statutes of limitations, is 

not being revised as part of this 

proposed rulemaking as changes to that 

section may involve changes to IRS 

computer processing systems and will 

be dealt with at a later date. 

Explanation of Provision 

1. Significant Hardship 

Under Section 301.7811–1(a)(4)(ii) of 

the existing regulations, significant 

hardship means ‘‘serious privation 

caused or about to be caused to the 

taxpayer as the result of the particular 

manner in which the internal revenue 

laws are being administered by the 

Internal Revenue Service.’’ RRA 98 

clarified the meaning of the term 

significant hardship by providing a 

nonexclusive list of types. Section 

7811(a)(2) provides that significant 

hardship includes: (1) An immediate 

threat of adverse action; (2) a delay of 

more than 30 days in resolving taxpayer 

account problems; (3) the incurring by 

the taxpayer of significant costs 

(including fees for professional 

representation) if relief is not granted; or 

(4) irreparable injury to, or a long-term 

adverse impact on, the taxpayer if relief 

is not granted. Thus, the proposed 

regulations list the statutory types and 

also provide guidance with regard to 

what constitutes significant hardship 

under the delay standard and other 

criteria. Significant hardship under the 

30-day delay standard is met when a 

taxpayer does not receive a response by 

the date promised by the IRS, or when 

the IRS has established a normal 

processing time for taking an action and 

the taxpayer experiences a delay of 

more than 30 days beyond the normal 

processing time. 

2. Distinction Between Significant 

Hardship and Issuance of TAO 

The proposed regulations discuss the 

distinction between a finding of 

‘‘significant hardship’’ and ‘‘the 

issuance of a TAO.’’ The proposed 

regulations are designed to clarify that 

a finding by the NTA that a taxpayer is 

suffering or about to suffer a significant 

hardship as a result of the manner in 

which the internal revenue laws are 

being administered by the IRS will not 

automatically result in the issuance of a 

TAO. After making a determination of 

significant hardship, the NTA must 

determine whether the facts and the law 

support relief. 

3. Compliance With the TAO 

The proposed regulations explain that 

a TAO is an order by the NTA to the IRS 

and that the IRS will comply with the 

terms of the TAO unless it is appealed 

and then modified or rescinded by the 

Commissioner, the Deputy 

Commissioner, or the NTA. If a TAO is 

modified or rescinded by the 

Commissioner or Deputy Commissioner, 

a written explanation of the reasons for 

the modification or rescission must be 

provided to the NTA. Furthermore, the 

proposed regulations clarify that a TAO 

is not intended to be a substitute for an 

established administrative or judicial 

review procedure, but rather is intended 

to supplement these procedures if a 

taxpayer is about to suffer or is suffering 

a significant hardship. Thus, a 

taxpayer’s right to administrative or 

judicial review will not be diminished 

or expanded in any way as a result of 

the taxpayer’s seeking assistance from 

the Taxpayer Advocate Service (TAS). 

4. Form of Request 

The proposed regulations provide that 

a request for a TAO shall be made on 

a Form 911, ‘‘Request for Taxpayer 

Advocate Service Assistance (and 

Application for Taxpayer Assistance 

Order)’’ (or other specified form) or in 

a written statement that provides 

sufficient information for TAS to 

determine the nature of the harm or the 

need for assistance. 

5. Scope of the TAO 

The proposed regulations provide that 

the NTA can issue a TAO directing an 

action in the circumstances outlined in 

section 7811(b). Section 7811(b) 

provides that the NTA may issue a TAO 

ordering the IRS within a specified time 

to (i) release levied property, or (ii) 

cease any action, take any action as 

permitted by law, or refrain from taking 

any action with respect to a taxpayer 

under: (A) Chapter 64 (relating to 

collection); (B) chapter 70, subchapter B 

(relating to bankruptcy and 

receiverships); (C) chapter 78 (relating 

to discovery of liability and enforcement 

of title); or (D) any other provision of 

law specifically described by the NTA 

in the TAO. Consistent with the list of 

specific subchapter and chapters of the 

Code in section 7811(b), the proposed 

regulations provide that the phrase ‘‘any 

provision of law’’ refers to other 

provisions of the internal revenue laws 


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Federal Register / Vol. 74, No. 142 / Monday, July 27, 2009 / Proposed Rules 36975 

similar to the provisions enumerated in 

the statute. 

The proposed regulations further 

provide that in circumstances where the 

statute does not authorize the issuance 

of a TAO to order a specific action, if 

the NTA determines that the taxpayer is 

suffering or about to suffer a significant 

hardship and that the issuance of a TAO 

is appropriate, the NTA may issue a 

TAO seeking to expedite, review, or 

reconsider an action at a higher level. 

Although the statute does not expressly 

state that a TAO may be issued to 

request that the IRS expedite, review, or 

reconsider at a higher level an action, 

the statute and the legislative history 

support this interpretation. 

As initially enacted, section 7811(b) 

did not grant the Ombudsman (the 

predecessor to the NTA) the authority to 

order affirmative actions. At that time, 

section 7811(b) provided that a TAO 

could order either the release of levy or 

could order the IRS to cease or refrain 

from taking an action under the three 

enumerated chapters of the Code listed 

in the statute. Thus, under the initial 

version of section 7811(b)(2), except for 

releasing levies, TAOs could not be 

issued to take affirmative actions. For 

example, a TAO could order the IRS to 

refrain from filing a Notice of Federal 

Tax Lien (NFTL), but it could not 

require the IRS to release an NFTL. 

Delegation Order (DO) 239 (01–31–92) 

remedied this problem by delegating to 

the Ombudsman the authority to order 

affirmative acts. Congress also 

recognized the deficiency in the law and 

amended section 7811(b) as part of 

TBOR 2 to allow TAOs to be issued with 

respect to affirmative acts by inserting 

the words ‘‘take any action as permitted 

by law’’ into the statute. The Committee 

Report to TBOR 2, H. Rep. No. 104–506, 

104th Cong., 2nd Sess., at 1148 (1996), 

explains how the existing law was 

deficient in that, for example, it did not 

allow a TAO to be issued to expedite a 

refund or review the validity of a tax 

deficiency. The report explains that the 

reason for amendment to section 

7811(b) was to allow a TAO to be issued 

‘‘for a review of the appropriateness of 

the proposed action.’’ Thus, consistent 

with the legislative history and the 

statutory amendments, the proposed 

regulations provide that where the 

statute does not authorize the issuance 

of a TAO to order a specific action, if 

the NTA determines that a taxpayer is 

suffering or about to suffer a significant 

hardship and that relief is appropriate, 

the NTA may issue a TAO seeking to 

expedite, review, or reconsider an 

action at a higher level. 

6. Who Is Subject to a TAO? 

The proposed regulations provide 

rules regarding who is subject to a TAO. 

Generally, a TAO can be issued to any 

operating division or function of the 

IRS. Due to the sensitivity and 

importance of criminal investigations, 

the proposed regulations provide that a 

TAO may not be issued if the action 

ordered in the TAO could reasonably be 

expected to impede a criminal 

investigation. The IRS Criminal 

Investigation division (CI) will 

determine whether the action ordered in 

the TAO could reasonably be expected 

to impede an investigation. Procedures 

for handling cases where the NTA 

questions CI’s initial determination will 

be added to the IRM. 

The rule for issuing a TAO to the 

Office of Chief Counsel has been 

updated to reflect the reorganization of 

the IRS as well as statutory changes. The 

existing regulations provide that: ‘‘[a] 

taxpayer assistance order may generally 

not be issued * * * to enjoin an act of 

the Office of Chief Counsel (with the 

exception of Appeals).’’ Due to a 

reorganization of the Office of Chief 

Counsel, effective October 1, 1995, 

Appeals is no longer a component of the 

Office of Chief Counsel. Accordingly, 

the proposed regulations eliminate the 

parenthetical reference to Appeals in 

§ 301.7811–1(c)(3). The NTA continues 

to have the authority to issue TAOs to 

Appeals. Additionally, at the time that 

the existing regulations were finalized, 

the Ombudsman could not issue a TAO 

to order an affirmative act, other than a 

release of levy. As discussed in this 

preamble, under the current version of 

the statute, the NTA has much broader 

authority regarding the ability to order 

an affirmative act. Thus, the term 

‘‘enjoin’’ has also been eliminated, and 

the rule under the proposed regulations 

is that: ‘‘[g]enerally a TAO may not be 

issued to the Office of Chief Counsel.’’ 

Special Analyses 

This notice of proposed rulemaking is 

not a significant regulatory action as 

defined in Executive Order 12866. 

Therefore, a regulatory assessment is not 

required. It has also been determined 

that section 553(b) of the Administrative 

Procedure Act (5 U.S.C. chapter 5) does 

not apply to these regulations. Pursuant 

to the Regulatory Flexibility Act (5 

U.S.C. chapter 6), it is hereby certified 

that these regulations will not have a 

significant economic impact on a 

substantial number of small entities. 

The information required under these 

proposed regulations is already required 

by the current regulations and the Form 

911, ‘‘Request for Taxpayer Advocate 

Service Assistance (and Application for 

Taxpayer Assistance order).’’ In 

addition, the Form 911 takes minimal 

time and expense to prepare, and the 

filing of a Form 911 is optional. 

Therefore, preparing the Form 911 does 

not significantly increase the burden on 

taxpayers. Based on these facts, the 

Treasury Department and the IRS have 

determined that these proposed 

regulations will not have a significant 

economic impact on a substantial 

number of small entities. Furthermore, 

the substance of the regulations does not 

concern the Form 911, but the 

procedures the Taxpayer Advocate 

Service (TAS) or the Internal Revenue 

Service (IRS) must follow with respect 

to taxpayer assistance orders. Therefore, 

any burden created by these regulations 

is on the TAS or IRS, not taxpayers. 

Pursuant to section 7805(f) of the Code, 

this notice of proposed rulemaking has 

been 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 or electronic comments that are 

submitted timely to the IRS. All 

comments will be available for public 

inspection and copying. A public 

hearing may be scheduled if requested 

in writing by any person who timely 

submits written comments. If a public 

hearing is scheduled, notice of the date, 

time, and place for the public hearing 

will be published in the Federal 

Register. 

Drafting Information 

The principal author of these 

regulations is Janice R. Feldman, Office 

of the Special Counsel (National 

Taxpayer Advocate Program) (CC:NTA). 

List of Subjects in 26 CFR Part 301 

Employment taxes, Estate taxes, 

Excise taxes, Gift taxes, Income taxes, 

Penalties, Reporting and recordkeeping 

requirements. 

Withdrawal of Proposed Regulations 

Accordingly, under the authority of 

26 U.S.C. 7805, the notice of proposed 

rulemaking that was published in the 

Federal Register on April 19, 1996 (61 

FR 17265) is withdrawn. 

Proposed Amendments to the 

Regulations 

Accordingly, 26 CFR part 301 is 

proposed to be amended as follows: 


hsrobinson on PROD1PC76 with PROPOSALS
36976 Federal Register / Vol. 74, No. 142 / Monday, July 27, 2009 / Proposed Rules 

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 301.7811–1 is 

amended by revising paragraphs (a), (b), 

(c) and (d), removing paragraphs (f), (g), 

(h) and redesignating paragraph (h) as (f) 

and revising newly designated 

paragraph (f) to read as follows: 

§ 301.7811–1 Taxpayer Assistance Orders. 

(a) Authority to issue—(1) In general. 

When an application for a Taxpayer 

Assistance Order (TAO) is filed by the 

taxpayer or the taxpayer’s authorized 

representative in the form, manner and 

time specified in paragraph (b) of this 

section, the National Taxpayer Advocate 

(NTA) may issue a TAO if, in the 

determination of the NTA, the taxpayer 

is suffering or is about to suffer a 

significant hardship as a result of the 

manner in which the internal revenue 

laws are being administered by the 

Internal Revenue Service (IRS), 

including action or inaction on the part 

of the IRS. 

(2) The National Taxpayer Advocate 

defined. The term National Taxpayer 

Advocate includes any designee of the 

NTA, such as a Local Taxpayer 

Advocate. 

(3) Issuance without a written 

application. The NTA may issue a TAO 

in the absence of a written application 

by the taxpayer under section 7811(a). 

(4) Significant hardship—(i) 

Determination required. Before a TAO 

may be issued, the NTA is required to 

make a determination regarding 

significant hardship. 

(ii) Term Defined. The term 

significant hardship means a serious 

privation caused or about to be caused 

to the taxpayer as the result of the 

particular manner in which the revenue 

laws are being administered by the IRS. 

Significant hardship includes situations 

in which a system or procedure fails to 

operate as intended or fails to resolve 

the taxpayer’s problem or dispute with 

the IRS. A significant hardship also 

includes, but is not limited to: 

(A) An immediate threat of adverse 

action; 

(B) A delay of more than 30 days in 

resolving taxpayer account problems; 

(C) The incurring by the taxpayer of 

significant costs (including fees for 

professional representation) if relief is 

not granted; or 

(D) Irreparable injury to, or a longterm adverse impact on, the taxpayer if 

relief is not granted. 

(iii) A delay of more than 30 days in 

resolving taxpayer account problems is 

further defined. A delay of more than 30 

days in resolving taxpayer account 

problems exists under the following 

conditions: 

(A) When a taxpayer does not receive 

a response by the date promised by the 

IRS; or 

(B) When the IRS has established a 

normal processing time for taking an 

action and the taxpayer experiences a 

delay of more than 30 days beyond the 

normal processing time. 

(iv) Examples of significant hardship. 

The provisions of this section are 

illustrated by the following examples: 

Example 1. Immediate threat of adverse 

action. The IRS serves a levy on A’s bank 

account. A needs the bank funds to pay for 

a medically necessary surgical procedure that 

is scheduled to take place in one week. If the 

levy is not released, A will lack the funds 

necessary to have the procedure. A is 

experiencing an immediate threat of adverse 

action. 

Example 2. Delay of more than 30 days. B 

files a Form 4506, ‘‘Request for a Copy of Tax 

Return.’’ B does not receive the photocopy of 

the tax return after waiting more than 30 days 

beyond the normal time for processing. B is 

experiencing a delay of more than 30 days. 

Example 3. Significant costs. The IRS 

sends XYZ, Inc. several notices requesting 

payment of the outstanding employment 

taxes owed by XYZ, Inc. and four of its 

subsidiaries. The IRS contends that XYZ, Inc. 

and the four subsidiaries have small 

employment tax balances with respect to 12 

employment tax quarters totaling $10X. XYZ, 

Inc. provides documentation to the IRS 

which it contends shows that if all payments 

were applied to each entity correctly, there 

would be no balance due. The IRS requests 

additional records and documentation. 

Because there are 60 tax periods (12 quarters 

for each of the five entities) involved, to 

comply with this request XYZ, Inc. will need 

to hire an accountant, who estimates he will 

charge at least $5X to organize all the records 

and provide a detailed analysis of the how 

the payments should have been applied. 

XYZ, Inc. is facing significant costs. 

Example 4. Irreparable injury. D has 

arranged with a bank to refinance his 

mortgage to lower his monthly payment. D is 

unable to make the current monthly 

payment. Unless the monthly payment 

amount is lowered, D will lose his residence 

to foreclosure. The IRS refuses to subordinate 

the Federal tax lien, as permitted by IRC 

section 6325(d), or discharge the property 

subject to the lien, as permitted by IRC 

section 6325(b). As a result, the bank will not 

allow D to refinance. D is facing an 

irreparable injury if relief is not granted. 

(5) Distinction Between Significant 

Hardship and the Issuance of a TAO. A 

finding that a taxpayer is suffering or 

about to suffer a significant hardship as 

a result of the manner in which the 

internal revenue laws are being 

administered by the IRS will not 

automatically result in the issuance of a 

TAO. After making a determination of 

significant hardship, the NTA must 

determine whether the facts and the law 

support relief for the taxpayer. In cases 

where any IRS employee is not 

following applicable published 

administrative guidance (including the 

Internal Revenue Manual), the NTA 

shall construe the factors taken into 

account in determining whether to issue 

a TAO in the manner most favorable to 

the taxpayer. 

(b) Generally. A TAO is an order by 

the NTA to the IRS. The IRS will 

comply with a TAO unless it is 

appealed and then modified or 

rescinded by the NTA, Commissioner or 

the Deputy Commissioner. If a TAO is 

modified or rescinded by the 

Commissioner or Deputy Commissioner, 

a written explanation of the reasons for 

the modification or rescission must be 

provided to the NTA. The NTA may not 

make a substantive determination of any 

tax liability. A TAO is also not intended 

to be a substitute for an established 

administrative or judicial review 

procedure, but rather is intended to 

supplement existing procedures if a 

taxpayer is about to suffer or is suffering 

a significant hardship. A request for a 

TAO shall be made on a Form 911, 

‘‘Request for Taxpayer Advocate Service 

Assistance (And Application for 

Taxpayer Assistance Order)’’ (or other 

specified form) or in a written statement 

that provides sufficient information for 

TAS to determine the nature of the harm 

or the need for assistance. A taxpayer’s 

right to administrative or judicial review 

will not be diminished or expanded in 

any way as a result of the taxpayer’s 

seeking assistance from TAS. 

(c) Contents of Taxpayer Assistance 

Orders. After establishing that the 

taxpayer is facing significant hardship 

and determining that the facts and law 

support relief to the taxpayer, the NTA 

may issue a TAO ordering the IRS 

within a specified time to— 

(1) Release a Levy. Release levied 

property (to the extent that the IRS may 

by law release such property); or 

(2) Take Certain Other Actions. Cease 

any action, take any action as permitted 

by law, or refrain from taking any action 

with respect to a taxpayer pursuant to— 

(i) Chapter 64 (relating to collection); 

(ii) Chapter 70, subchapter B (relating 

to bankruptcy and receiverships); 

(iii) Chapter 78 (relating to discovery 

of liability and enforcement of title); or 

(iv) Any other provision of the 

internal revenue laws specifically 

described by the NTA in the TAO. 

(3) Expedite, Review or Reconsider an 

Action at a Higher Level. Although the 

NTA may not make the substantive 

determination, a TAO may be issued to 


hsrobinson on PROD1PC76 with PROPOSALS
Federal Register / Vol. 74, No. 142 / Monday, July 27, 2009 / Proposed Rules 36977 

require the IRS to expedite, reconsider, 

or review at a higher level an action 

taken with respect to a determination or 

collection of a tax liability. 

(4) Examples. The following examples 

assume the existence of significant 

hardship: 

Example 1. J contacts a local taxpayer 

advocate because a wage levy is causing 

financial difficulties. The NTA determines 

that the levy should be released as it is 

causing economic hardship (within the 

meaning of section 6343(a) and Treas. Reg. 

§ 301.6343–1(b)(4)). The NTA may issue a 

TAO ordering the IRS to release the levy in 

whole or in part by a specified date. 

Example 2. The IRS rejects K’s offer in 

compromise. K files a Form 911, ‘‘Request for 

Taxpayer Advocate Service Assistance (and 

Application for Taxpayer Assistance Order).’’ 

The NTA discovers facts that support 

acceptance of the offer in compromise. The 

NTA may issue a TAO ordering the IRS to 

reconsider its rejection of the offer or to 

review the rejection of the offer at a higher 

level. The TAO may include NTA analysis of 

and recommendation for resolving the case. 

Example 3. L files a protest requesting 

Appeals consideration of IRS’s proposed 

denial of L’s request for innocent spouse 

relief. Appeals advises L that it is going to 

issue a Final Determination denying the 

request for innocent spouse relief. L files a 

Form 911, ‘‘Request for Taxpayer Advocate 

Service Assistance (and Application for 

Taxpayer Assistance Order).’’ The NTA 

reviews the administrative record and 

concludes that the facts support granting 

innocent spouse relief. The NTA may issue 

a TAO ordering Appeals to refrain from 

issuing a Final Determination and reconsider 

or review at a higher level its decision to 

deny innocent spouse relief. The TAO may 

include TAS analysis of and 

recommendation for resolving the case. 

(d) Issuance. A TAO may be issued to 

any office, operating division, or 

function of the IRS. A TAO shall apply 

to persons performing services under a 

qualified tax collection contract (as 

defined in section 6306(b)) to the same 

extent and in the same manner as the 

order applies to IRS employees. A TAO 

will not be issued to IRS Criminal 

Investigation division (CI), or any 

successor IRS division responsible for 

the criminal investigation function, if 

the action ordered in the TAO could 

reasonably be expected to impede a 

criminal investigation. CI will 

determine whether the action ordered in 

the TAO could reasonably be expected 

to impede an investigation. Generally, a 

TAO may not be issued to the Office of 

Chief Counsel. 

* * * * * 

(f) Effective applicability date. These 

regulations are applicable for TAOs 

issued on or after the date of publication 

of the Treasury decision adopting these 

rules as final regulations in the Federal 

Register, except that paragraph (e) is 

applicable beginning March 20, 1992. 

Linda E. Stiff, 

Deputy Commissioner for Services and 

Enforcement. 

[FR Doc. E9–17747 Filed 7–24–09; 8:45 am] 

BILLING CODE 4830–01–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Part 52 

[EPA–R04–OAR–2009–0023; FRL–8935–2] 

Approval and Promulgation of 

Implementation Plans; Kentucky; 

Variance of Avis Rent-A-Car and 

Budget Rent-A-Car Facilities Located 

at the Cincinnati/Northern Kentucky 

International Airport 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Proposed rule. 

SUMMARY: EPA is proposing to approve 

the source-specific State 

Implementation Plan (SIP) revision 

submitted by the Commonwealth of 

Kentucky on February 4, 2009, for the 

purpose of removing Stage II vapor 

control requirements at Avis Rent-ACar, and Budget Rent-A-Car facilities 

located at the Cincinnati/Northern 

Kentucky International Airport. This 

proposed revision to the SIP is 

approvable based on the December 12, 

2006, EPA policy memorandum from 

Stephen D. Page entitled Removal of 

Stage II Vapor Recovery in Situations 

Where Widespread Use of Onboard 

Refueling Vapor Recovery is 

Demonstrated. This action is being 

taken pursuant to Section 110 of the 

Clean Air Act (CAA). 

DATES: Written comments must be 

received on or before August 26, 2009. 

ADDRESSES: Submit your comments, 

identified by Docket ID No. EPA–R04– 

OAR–2009–0023 by one of the following 

method: 

1. http://www.regulations.gov: Follow 

the on-line instructions for submitting 

comments. 

2. E-mail: benjamin.lynorae@epa.gov. 

3. Fax: (404) 562–9019. 

4. Mail: ‘‘EPA–R04–OAR–2009– 

0023’’, Regulatory Development Section; 

Air Planning Branch; Air, Pesticides and 

Toxics Management Division; U.S. 

Environmental Protection Agency, 

Region 4, 61 Forsyth Street, SW., 

Atlanta, Georgia 30303–8960. 

5. Hand Delivery or Courier: Lynorae 

Benjamin, Regulatory Development 

Section; Air Planning Branch; Air, 

Pesticides and Toxics Management 

Division; U.S. Environmental Protection 

Agency, Region 4, 61 Forsyth Street, 

SW., Atlanta, Georgia 30303–8960. Such 

deliveries are only accepted during the 

Regional Office’s normal hours of 

operation. The Regional Office’s official 

hours of business are Monday through 

Friday, 8:30 to 4:30, excluding Federal 

holidays. 

Instructions: Direct your comments to 

Docket ID No. ‘‘EPA–R04–OAR–2009– 

0023’’. EPA’s policy is that all 

comments received will be included in 

the public docket without change and 

may be made available online at 

http://www.regulations.gov, including 

any personal information provided, 

unless the comment includes 

information claimed to be Confidential 

Business Information (CBI) or other 

information whose disclosure is 

restricted by statute. Do not submit 

through http://www.regulations.gov or 

e-mail, information that you consider to 

be CBI or otherwise protected. The 

http://www.regulations.gov Web site is 

an ‘‘anonymous access’’, which means 

EPA will not know your identity or 

contact information unless you provide 

it in the body of your comments. If you 

send an e-mail comment directly to EPA 

without going through http:// 

www.regulations.gov, your e-mail 

address will be automatically captured 

and included as part of the comment 

that is placed in the public docket and 

made available on the Internet. If you 

submit an electronic comment, EPA 

recommends that you include your 

name and other contact information in 

the body of your comment and with any 

disk or CD–ROM you submit. If EPA 

cannot read your comment due to 

technical difficulties and cannot contact 

you for clarification, EPA may not be 

able to consider you comment. 

Electronic files should avoid the use of 

special characters, any form of 

encryption, and be free of any defects or 

viruses. For additional information 

about EPA’s public docket visit the EPA 

Docket Center homepage at http:// 

www.epa.gov/epahome/dockets.htm. 

Docket: All documents in the 

electronic docket are listed in the http: 

//www.regulations.gov index. Although 

listed in the index, some information is 

not publicly available, i.e., CBI or other 

information whose disclosure is 

restricted by statute. Certain other 

materials, such as copyrighted material, 

is not placed on the Internet and will be 

publicly available only in the hard copy 

form. Publicly available docket 

materials are available either 

electronically in http:// 

www.regulations.gov or in hard copy at 

the Regulatory Development Section, 

Air Planning Branch, Air, Pesticide and 


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