Page:United States Statutes at Large Volume 102 Part 4.djvu/763

 PUBLIC LAW 100-647—NOV. 10, 1988

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102 STAT. 3733

SEC. 6229. TAXPAYERS MAY RELY ON WRITTEN ADVICE OF INTERNAL REVENUE SERVICE.

(a) IN GENERAL.—Section 6404 of the 1986 Code (relating to abatements) is amended by adding at the end thereof the following new subsection: "(f) ABATEMENT OF ANY PENALTY OR ADDITION TO TAX ATTRIBUTABLE T ERRONEOUS WRITTEN ADVICE BY THE INTERNAL REVENUE O SERVICE.—

"(1) IN GENERAL.—The Secretary shall abate any portion of any penalty or addition to tax attributable to erroneous advice furnished to the taxpayer in writing by an officer or employee of the Internal Revenue Service, acting in such officer's or employee's official capacity. "(2) LIMITATIONS.—Paragraph (1) shall apply only if— "(A) the written advice was reasonably relied upon by the taxpayer and was in response to a specific written request of the taxpayer, and "(B) the portion of the penalty or addition to tax did not result from a failure by the taxpayer to provide adequate or accurate information. "(3) INITIAL REGULATIONS.—Within 180 days after the date of the enactment of this subsection, the Secretary shall prescribe such initial regulations as may be necessary to carry out this subsection." (b) EFFECTIVE DATE.—The amendment made by subsection (a) 26 USC 6404 shall apply with respect to advice requested on or after January 1, note. 1989. SEC. 6230. TAXPAYER ASSISTANCE ORDERS.

(a) IN GENERAL.—Subchapter A of chapter 80 of the 1986 Code (relating to general rules for application of the internal revenue laws) is amended by adding at the end thereof the following new section: "SEC. 7811. TAXPAYER ASSISTANCE ORDERS.

"(a) AUTHORITY TO ISSUE.—Upon application filed by a taxpayer Regulations. with the Office of Ombudsman (in such form, manner, and at such time as the Secretary shall by regulations prescribe), the Ombudsman may issue a Taxpayer Assistmice Order if, in the determination of the Ombudsman, the 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 Secretary. "(b) TERMS OF A TAXPAYER ASSISTANCE ORDER.—The terms of a

Taxpayer Assistance Order may require the Secretary— "(1) to release property of the taxpayer levied upon, or "(2) to cease any action, or refrain from taking any action, with respect to the taxpayer under— "(A) chapter 64 (relating to collection), "(B) subchapter B of chapter 70 (relating to bankruptcy and receiverships), "(C) chapter 78 (relating to discovery of liability and enforcement of title), or "(D) any other provision of law which is specifically described by the Ombudsman in such order. "(c) AUTHORITY TO MODIFY OR RESCIND.—Any Teixpayer Assistance Order issued by the Ombudsman under this section may be modified or rescinded only by the Ombudsman, a district director, a

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