Page:United States Statutes at Large Volume 112 Part 1.djvu/791

 PUBLIC LAW 105-206—JULY 22, 1998 112 STAT. 765 to determine whether an offer-in-compromise is adequate and should be accepted to resolve a dispute. "(2) ALLOWANCES FOR BASIC LIVING EXPENSES.— "(A) IN GENERAL. —In prescribing guidelines under Publication, paragraph (1), the Secretary shall develop and publish schedules of national and local allowances designed to provide that taxpayers entering into a compromise have an adequate means to provide for basic living expenses. "(B) USE OF SCHEDULES. — The guidelines shall provide that officers and employees of the Internal Revenue Service shall determine, on the basis of the facts and circumstances of each taxpayer, whether the use of the schedules published under subparagraph (A) is appropriate and shall not use the schedules to the extent such use would result in the taxpayer not having adequate means to provide for basic living expenses. "(3) SPECIAL RULES RELATING TO TREATMENT OF OFFERS. — The guidelines under paragraph (1) shall provide that— "(A) an officer or employee of the Internal Revenue Service shall not reject an offer-in-compromise from a lowincome taxpayer solely on the basis of the amount of the offer; and "(B) in the case of an offer-in-compromise which relates only to issuesof liability of the taxpayer— "(i) such offer shall not be rejected solely because the Secretary is unable to locate the taxpayer's return or return information for verification of such liability; and "(ii) the taxpayer shall not be required to provide a financial statement.", (b) LEVY PROHIBITED WHILE OFFER-IN-COMPROMISE PENDING OR INSTALLMENT AGREEMENT PENDING OR IN EFFECT. —Section 6331 (relating to levy and distraint), as amended by sections 3433 and 3444, is amended by redesignating subsection (k) as subsection (1) and by inserting after subsection (j) the following new subsection: " (k) No LEVY WHILE CERTAIN OFFERS PENDING OR INSTALL- MENT AGREEMENT PENDING OR IN EFFECT. — "(1) OFFER-IN-COMPROMISE PENDING.— No levy may be made under subsection (a) on the property or rights to property of any person with respect to any unpaid tax— "(A) during the period that an offfer-in-compromise by such person under section 7122 of such unpaid tax is pending with the Secretary; and "(B) if such offer is rejected by the Secretary, during the 30 days thereafter (and, if an appeal of such rejection is filed within such 30 days, during the period that such appeal is pending). For purposes of subparagraph (A), an offer is pending beginning on the date the Secretary accepts such offer for processing. "(2) INSTALLMENT AGREEMENTS. —No levy may be made under subsection (a) on the property or rights to property of any person with respect to any unpaid tax— "(A) during the period that an offer by such person for an installment agreement under section 6159 for pay- ment of such unpaid tax is pending with the Secretary; "(B) if such offer is rejected by the Secretary, during the 30 days thereafter (and, if an appeal of such rejection

�