Congress clarifies IRS Taxpayer Advocate's power to hire lawyers

What it does

This bill amends the Internal Revenue Code to explicitly authorize the National Taxpayer Advocate to hire and appoint counsel (lawyers) within their office who report directly to the Advocate. The change clarifies and implements language from the 1998 IRS Restructuring and Reform Act that was intended to grant this authority but may not have been clearly codified. The bill retroactively dates the change to 1998, treating it as if Congress had always meant for the Taxpayer Advocate to have this hiring power.

Why we flagged it

The bill's sole function is to clarify and expand the hiring authority of the National Taxpayer Advocate, a government office that represents taxpayers against the IRS. It is a structural reform that strengthens an existing taxpayer-protection mechanism.

What the text implies

• By retroactively dating the amendment to 1998, the bill may resolve ambiguity about whether the Advocate already possessed this authority under the original statute, potentially validating counsel hires made under a broader interpretation of existing law.
• Explicit counsel-hiring authority may enable the Taxpayer Advocate to pursue more aggressive legal advocacy on behalf of taxpayers, including litigation against the IRS or formal legal opinions challenging IRS positions.

The full analysis lists 3 implications of this text.

Who it affects

The National Taxpayer Advocate is an independent office within the IRS that represents taxpayers' interests and provides relief from IRS errors. Explicitly authorizing the Advocate to hire counsel strengthens their capacity to advocate for taxpayers, investigate IRS misconduct, and provide legal representation to citizens in disputes with the tax agency.