Summary: H.R.4931 — 97th Congress (1981-1982)All Information (Except Text)

There is one summary for H.R.4931. Bill summaries are authored by CRS.

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Introduced in House (11/10/1981)

Taxpayer Protection Act - Amends the Internal Revenue Code to subject the Internal Revenue Service (IRS), in the collection of taxes, to provisions of the Fair Debt Collection Practices Act regarding communication and harassment in connection with debt collection. Prohibits the publication of any deficiency which has not been adjudged to be payable by a competent court. Permits individual taxpayers to bring a civil action in a U.S. district court for damages resulting from collection practices prohibited by this Act.

Requires a Federal court order before property of a taxpayer may be levied upon for the collection of tax.

Specifies that a showing of fraud or malfeasance or a misrepresentation, for purposes of modifying or reconsidering a closing agreement between an individual taxpayer and the Secretary of the Treasury, shall be taken into account only if such a showing or misrepresentation is determined by a competent court.

Prohibits the Secretary from consenting to extend for more than one year the period for assessment of the income tax liability of any individual taxpayer.

Requires the Secretary to prepare, for distribution to taxpayers, brief but comprehensive statements which set forth in nontechnical terms: (1) the rights and obligations of taxpayers during an audit; (2) the procedures which the IRS may use in enforcing revenue laws; and (3) the procedures by which a taxpayer may appeal adverse decisions, prosecute refund claims, and file taxpayer complaints. Requires a copy of such statement to accompany any tax forms sent to taxpayers.

Prescribes criminal penalties for: (1) any investigation by employees of the United States in connection with Federal tax laws which inquires into the beliefs, associations, or activities of any individual or organization; or (2) the maintenance of any records containing information derived from such an investigation.

Creates a civil cause of action for any taxpayer aggrieved by a prohibited investigation or by the deprivation of any civil rights.

Permits the award of a judgment of costs, including reasonable attorney's fees, to a prevailing taxpayer in any proceeding before the Tax Court.

Makes binding on the Secretary : (1) a tax return prepared for the taxpayer by an officer or employee of the IRS acting in his official capacity to provide such assistance; and (2) written information or advice given to the taxpayer by such an officer or employee acting in his official capacity.

Places the burden of proof, in administrative and judicial proceedings involving the IRS and a taxpayer, upon the IRS.

Directs that all property of taxpayers, for purposes of the estate and gift tax, be valued at historical cost (original cost to the taxpayer or the basis of the property if it was not purchased).

Prohibits the use in IRS personnel evaluations of amounts collected pursuant to audits or investigations.

Precludes the Secretary from exercising any enforcement authority over churches or certain other organizations.

Prohibits the audit of any group of taxpayers unless the Secretary has first met certain notice requirements or permitted members of the group to file an amended return.

Sets forth conditions which must be met by the IRS before any action is taken to interfere with the property rights of a taxpayer.

Requires the IRS, before securing the records of, or personal data concerning, any taxpayer, to: (1) notify the taxpayer in writing of the demand, the material sought, and the need for the material; (2) have commenced an action in a competent court against the taxpayer; and (3) have justified its need before the court consistent with the discovery rules of the Federal Rules of Civil Procedure.

States that the IRS shall have no authority, in enforcing the tax obligations of any person, which is in conflict with the rights and privileges granted under the Constitution.