This is the fourth in a series of ten client alerts summarizing the key provisions of the Taxpayer Assistance and Service Act (the “TAS Act”), a bipartisan legislative package introduced on February 26, 2026, by Senators Crapo and Wyden to improve service and administration at the Internal Revenue Service (“IRS”). This alert addresses Title IV of the proposed legislation, which focuses on the Office of the Taxpayer Advocate. For a general overview of the legislation, please refer to the Introduction of this series here, and summaries of Titles I, II, and III are here, here, and here.
Title IV strengthens the independence and authority of the National Taxpayer Advocate (“NTA”). These provisions address concerns that the Taxpayer Advocate Service (“TAS”) lacks sufficient independence from other IRS functions to effectively advocate for taxpayers and report to Congress on systemic problems.
Section 401: Attorney Hiring Authority
The NTA has long employed attorneys to provide independent legal advice and help fulfill its statutory duties. However, in 2015, the IRS denied the NTA’s request to backfill attorney positions, asserting that all IRS attorneys must report to the IRS Chief Counsel. As a result, the NTA is unable to promote attorneys or replace those lost to attrition. Under this provision of the TAS Act, the NTA would be authorized to directly hire attorneys who report to the NTA rather than the IRS Chief Counsel. Importantly, legal interpretations provided by these NTA attorneys would not be binding on the Treasury Department, preserving the distinction between advocacy and official legal positions.
Section 402: Personnel Decision Authority
Current law provides that the NTA has authority to take independent personnel actions for employees of local TAS offices to protect independence, but this protection does not extend to national office employees who advocate for systemic changes in IRS practices and policies. This provision of the TAS Act would extend the NTA’s authority to take independent personnel actions to all TAS employees, including those in the national office.
Section 403: Information Access
The NTA has reported that the IRS has occasionally declined to provide the NTA office with timely information needed to advocate for taxpayers or produce reports to Congress, including privileged legal advice and access to conferences between the IRS and taxpayers with open TAS cases. Section 403 of the TAS Act would require the IRS to provide the NTA and its employees access to all information, including legal advice, necessary to fulfill the NTA’s statutory duties. TAS employees would also be permitted to participate in taxpayer conferences when requested by the taxpayer. The provision establishes a default two-week deadline for the IRS to provide requested information and would require reporting failures to Congress.
Section 404: Limitation Period Suspension Repeal
Section 7811(d) of the Internal Revenue Code extends the period of limitations for IRS assessment or collection when a taxpayer requests TAS assistance in writing. However, the IRS has not implemented this provision since its enactment in 1988 because TAS does not take actions that would cause these periods to lapse. Moreover, if implemented, taxpayers requesting TAS assistance in writing would be treated differently from those requesting assistance by phone, creating an inequitable distinction. Section 404 of the bill repeals this provision.
Section 405: Operations During Government Shutdowns
Automated IRS enforcement actions may continue during a government shutdown, but unless the IRS determines employees are exempt from furlough, those employees are prohibited from assisting taxpayers, even those experiencing economic hardships resulting from the automated activities. Section 405 would authorize the IRS and the Office of the Taxpayer Advocate during a lapse in appropriations to incur obligations to assist taxpayers experiencing economic hardship and to comply with Taxpayer Assistance Orders.
Conclusion
Taken together, the provisions in Title IV reflect a legislative effort to bolster the NTA’s ability to serve as an effective, independent voice for taxpayers within the IRS. By addressing attorney hiring, personnel authority, information access, an obsolete statute of limitations rule, and operational continuity during government shutdowns, the TAS Act seeks to ensure that the TAS can fulfill its core mission without undue interference from other IRS functions.
The next post in this series will review Title V, which focuses on Tax Return Preparers.