26 U.S.C. § 7802 — Untitled legal text

Page 4052 TITLE 26—INTERNAL REVENUE CODE § 7802 retary and the Director of the Office of Management and Budget shall review and, if appropriate, reconsider the scope and implementation of the existing exemp- tion for certain tax regulations from the review process set forth in Executive Order 12866 and any successor order. (d) The Secretary shall cause section 32.1.5.4.7.5.3 of the Internal Revenue Manual to be revised, if necessary to fulfill the directives in subsection (c) of this section. SEC. 3. General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect: (i) the authority granted by law to an executive de- partment or agency, or the head thereof; or (ii) the functions of the Director of the Office of Man- agement and Budget relating to budgetary, administra- tive, or legislative proposals. (b) This order shall be implemented consistent with applicable law and subject to the availability of appro- priations. (c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforce- able at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person. DONALD J. TRUMP. § 7802. Internal Revenue Service Oversight Board (a) Establishment There is established within the Department of the Treasury the Internal Revenue Service Over- sight Board (hereafter in this subchapter re- ferred to as the ‘‘Oversight Board’’). (b) Membership (1) Composition The Oversight Board shall be composed of nine members, as follows: (A) six members shall be individuals who are not otherwise Federal officers or em- ployees and who are appointed by the Presi- dent, by and with the advice and consent of the Senate. (B) one member shall be the Secretary of the Treasury or, if the Secretary so des- ignates, the Deputy Secretary of the Treas- ury. (C) one member shall be the Commissioner of Internal Revenue. (D) one member shall be an individual who is a full-time Federal employee or a rep- resentative of employees and who is ap- pointed by the President, by and with the advice and consent of the Senate. (2) Qualifications and terms (A) Qualifications Members of the Oversight Board described in paragraph (1)(A) shall be appointed with- out regard to political affiliation and solely on the basis of their professional experience and expertise in one or more of the following areas: (i) Management of large service organi- zations. (ii) Customer service. (iii) Federal tax laws, including tax ad- ministration and compliance. (iv) Information technology. (v) Organization development. (vi) The needs and concerns of taxpayers. (vii) The needs and concerns of small businesses. In the aggregate, the members of the Over- sight Board described in paragraph (1)(A) should collectively bring to bear expertise in all of the areas described in the preceding sentence. (B) Terms Each member who is described in subpara- graph (A) or (D) of paragraph (1) shall be ap- pointed for a term of 5 years, except that of the members first appointed under para- graph (1)(A)— (i) two members shall be appointed for a term of 3 years, (ii) two members shall be appointed for a term of 4 years, and (iii) two members shall be appointed for a term of 5 years. (C) Reappointment An individual who is described in subpara- graph (A) or (D) of paragraph (1) may be ap- pointed to no more than two 5-year terms on the Oversight Board. (D) Vacancy Any vacancy on the Oversight Board shall be filled in the same manner as the original appointment. Any member appointed to fill a vacancy occurring before the expiration of the term for which the member’s predecessor was appointed shall be appointed for the re- mainder of that term. (3) Ethical considerations (A) Financial disclosure During the entire period that an individual appointed under subparagraph (A) or (D) of paragraph (1) is a member of the Oversight Board, such individual shall be treated as serving as an officer or employee referred to in section 13103(f) of title 5, United States Code, for purposes of subchapter I of chapter 131 of such title, except that section 13103(d) of such title shall apply without regard to the number of days of service in the posi- tion. (B) Restrictions on post-employment For purposes of section 207(c) of title 18, United States Code, an individual appointed under subparagraph (A) or (D) of paragraph (1) shall be treated as an employee referred to in section 207(c)(2)(A)(i) of such title dur- ing the entire period the individual is a member of the Board, except that sub- sections (c)(2)(B) and (f) of section 207 of such title shall not apply. (C) Members who are special Government employees If an individual appointed under subpara- graph (A) or (D) of paragraph (1) is a special Government employee, the following addi- tional rules apply for purposes of chapter 11 of title 18, United States Code: (i) Restriction on representation In addition to any restriction under sec- tion 205(c) of title 18, United States Code, except as provided in subsections (d) through (i) of section 205 of such title, such individual (except in the proper discharge Page 4053 TITLE 26—INTERNAL REVENUE CODE § 7802 of official duties) shall not, with or with- out compensation, represent anyone to or before any officer or employee of— (I) the Oversight Board or the Internal Revenue Service on any matter; (II) the Department of the Treasury on any matter involving the internal rev- enue laws or involving the management or operations of the Internal Revenue Service; or (III) the Department of Justice with respect to litigation involving a matter described in subclause (I) or (II). (ii) Compensation for services provided by another For purposes of section 203 of such title— (I) such individual shall not be subject to the restrictions of subsection (a)(1) thereof for sharing in compensation earned by another for representations on matters covered by such section, and (II) a person shall not be subject to the restrictions of subsection (a)(2) thereof for sharing such compensation with such individual. (D) Waiver The President may, only at the time the President nominates the member of the Oversight Board described in paragraph (1)(D), waive for the term of the member any appropriate provision of chapter 11 of title 18, United States Code, to the extent such waiver is necessary to allow such member to participate in the decisions of the Board while continuing to serve as a full-time Fed- eral employee or a representative of employ- ees. Any such waiver shall not be effective unless a written intent of waiver to exempt such member (and actual waiver language) is submitted to the Senate with the nomina- tion of such member. (4) Quorum Five members of the Oversight Board shall constitute a quorum. A majority of members present and voting shall be required for the Oversight Board to take action. (5) Removal (A) In general Any member of the Oversight Board ap- pointed under subparagraph (A) or (D) of paragraph (1) may be removed at the will of the President. (B) Secretary and Commissioner An individual described in subparagraph (B) or (C) of paragraph (1) shall be removed upon termination of service in the office de- scribed in such subparagraph. (6) Claims (A) In general Members of the Oversight Board who are described in subparagraph (A) or (D) of para- graph (1) shall have no personal liability under Federal law with respect to any claim arising out of or resulting from an act or omission by such member within the scope of service as a member. (B) Effect on other law This paragraph shall not be construed— (i) to affect any other immunities and protections that may be available to such member under applicable law with respect to such transactions; (ii) to affect any other right or remedy against the United States under applicable law; or (iii) to limit or alter in any way the im- munities that are available under applica- ble law for Federal officers and employees. (c) General responsibilities (1) Oversight (A) In general The Oversight Board shall oversee the In- ternal Revenue Service in its administra- tion, management, conduct, direction, and supervision of the execution and application of the internal revenue laws or related stat- utes and tax conventions to which the United States is a party. (B) Mission of IRS As part of its oversight functions described in subparagraph (A), the Oversight Board shall ensure that the organization and oper- ation of the Internal Revenue Service allows it to carry out its mission. (C) Confidentiality The Oversight Board shall ensure that ap- propriate confidentiality is maintained in the exercise of its duties. (2) Exceptions The Oversight Board shall have no respon- sibilities or authority with respect to— (A) the development and formulation of Federal tax policy relating to existing or proposed internal revenue laws, related stat- utes, and tax conventions, (B) specific law enforcement activities of the Internal Revenue Service, including spe- cific compliance activities such as examina- tions, collection activities, and criminal in- vestigations, (C) specific procurement activities of the Internal Revenue Service, or (D) except as provided in subsection (d)(3), specific personnel actions. (d) Specific responsibilities The Oversight Board shall have the following specific responsibilities: (1) Strategic plans To review and approve strategic plans of the Internal Revenue Service, including the estab- lishment of— (A) mission and objectives, and standards of performance relative to either, and (B) annual and long-range strategic plans. (2) Operational plans To review the operational functions of the Internal Revenue Service, including— (A) plans for modernization of the tax sys- tem, (B) plans for outsourcing or managed com- petition, and Page 4054 TITLE 26—INTERNAL REVENUE CODE § 7802 (C) plans for training and education. (3) Management To— (A) recommend to the President can- didates for appointment as the Commis- sioner of Internal Revenue and recommend to the President the removal of the Commis- sioner; (B) review the Commissioner’s selection, evaluation, and compensation of Internal Revenue Service senior executives who have program management responsibility over significant functions of the Internal Rev- enue Service; and (C) review and approve the Commissioner’s plans for any major reorganization of the In- ternal Revenue Service. (4) Budget To— (A) review and approve the budget request of the Internal Revenue Service prepared by the Commissioner; (B) submit such budget request to the Sec- retary of the Treasury; and (C) ensure that the budget request sup- ports the annual and long-range strategic plans. (5) Taxpayer protection To ensure the proper treatment of taxpayers by the employees of the Internal Revenue Service. The Secretary shall submit the budget request referred to in paragraph (4)(B) for any fiscal year to the President who shall submit such re- quest, without revision, to Congress together with the President’s annual budget request for the Internal Revenue Service for such fiscal year. (e) Board personnel matters (1) Compensation of members (A) In general Each member of the Oversight Board who— (i) is described in subsection (b)(1)(A); or (ii) is described in subsection (b)(1)(D) and is not otherwise a Federal officer or employee, shall be compensated at a rate of $30,000 per year. All other members shall serve without compensation for such service. (B) Chairperson In lieu of the amount specified in subpara- graph (A), the Chairperson of the Oversight Board shall be compensated at a rate of $50,000 per year. (2) Travel expenses (A) In general The members of the Oversight Board shall be allowed travel expenses, including per diem in lieu of subsistence, at rates author- ized for employees of agencies under sub- chapter I of chapter 57 of title 5, United States Code, to attend meetings of the Over- sight Board and, with the advance approval of the Chairperson of the Oversight Board, while otherwise away from their homes or regular places of business for purposes of du- ties as a member of the Oversight Board. (B) Report The Oversight Board shall include in its annual report under subsection (f)(3)(A) in- formation with respect to the travel ex- penses allowed for members of the Oversight Board under this paragraph. (3) Staff (A) In general The Chairperson of the Oversight Board may appoint and terminate any personnel that may be necessary to enable the Board to perform its duties. (B) Detail of Government employees Upon request of the Chairperson of the Oversight Board, a Federal agency shall de- tail a Federal Government employee to the Oversight Board without reimbursement. Such detail shall be without interruption or loss of civil service status or privilege. (4) Procurement of temporary and intermittent services The Chairperson of the Oversight Board may procure temporary and intermittent services under section 3109(b) of title 5, United States Code. (f) Administrative matters (1) Chair (A) Term The members of the Oversight Board shall elect for a 2-year term a chairperson from among the members appointed under sub- section (b)(1)(A). (B) Powers Except as otherwise provided by a major- ity vote of the Oversight Board, the powers of the Chairperson shall include— (i) establishing committees; (ii) setting meeting places and times; (iii) establishing meeting agendas; and (iv) developing rules for the conduct of business. (2) Meetings The Oversight Board shall meet at least quarterly and at such other times as the Chairperson determines appropriate. (3) Reports (A) Annual The Oversight Board shall each year report with respect to the conduct of its respon- sibilities under this title to the President, the Committees on Ways and Means, Gov- ernment Reform and Oversight, and Appro- priations of the House of Representatives and the Committees on Finance, Govern- mental Affairs, and Appropriations of the Senate. (B) Additional report Upon a determination by the Oversight Board under subsection (c)(1)(B) that the or- ganization and operation of the Internal Revenue Service are not allowing it to carry Page 4055 TITLE 26—INTERNAL REVENUE CODE § 7803 out its mission, the Oversight Board shall report such determination to the Committee on Ways and Means of the House of Rep- resentatives and the Committee on Finance of the Senate. (Aug. 16, 1954, ch. 736, 68A Stat. 915; Pub. L. 93–406, title II, § 1051(a), Sept. 2, 1974, 88 Stat. 951; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), (B), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 97–258, § 2(f)(2), Sept. 13, 1982, 96 Stat. 1059; Pub. L. 100–647, title VI, § 6235(a), Nov. 10, 1988, 102 Stat. 3737; Pub. L. 104–168, title I, § 101(a), (b)(2), July 30, 1996, 110 Stat. 1453, 1455; Pub. L. 105–206, title I, § 1101(a), July 22, 1998, 112 Stat. 691; Pub. L. 106–554, § 1(a)(7) [title III, § 319(27)], Dec. 21, 2000, 114 Stat. 2763, 2763A–648; Pub. L. 117–286, § 4(c)(34), Dec. 27, 2022, 136 Stat. 4358.) Editorial Notes AMENDMENTS 2022—Subsec. (b)(3)(A). Pub. L. 117–286 substituted ‘‘section 13103(f) of title 5, United States Code, for pur- poses of subchapter I of chapter 131 of such title, except that section 13103(d) of such title’’ for ‘‘section 101(f) of the Ethics in Government Act of 1978 for purposes of title I of such Act, except that section 101(d) of such Act’’. 2000—Subsec. (b)(2)(B)(ii). Pub. L. 106–554 substituted a comma for semicolon before ‘‘and’’. 1998—Pub. L. 105–206 amended section catchline and text of section generally, substituting present provi- sions for provisions which: in subsec. (a), declared that there shall be in the Department of the Treasury a Commissioner of Internal Revenue, appointed by the President, with such duties and powers as prescribed by Secretary of the Treasury; in subsec. (b), established Office of Employee Plans and Exempt Organizations to carry out functions with respect to organizations ex- empt from tax and with respect to plans to which part I of subchapter D of chapter 1 applied; in subsec. (c), es- tablished Office for Taxpayer Services such as tele- phone, walk-in, and taxpayer educational services, and design and production of forms; and in subsec. (d), es- tablished Office of Taxpayer Advocate and set forth functions of Office and responsibilities of Commissioner regarding response to recommendations of Office. See section 7803 of this title. 1996—Pub. L. 104–168, § 101(b)(2), substituted ‘‘Commis- sioners; Taxpayer Advocate.’’ for ‘‘Commissioner (Em- ployee Plans and Exempt Organizations)’’ in section catchline. Subsec. (d). Pub. L. 104–168, § 101(a), added subsec. (d). 1988—Subsec. (c). Pub. L. 100–647 added subsec. (c). 1982—Subsec. (b). Pub. L. 97–258 redesignated existing provisions as par. (1), added par. (1) heading, and added par. (2). Par. (2) is based on provisions that appeared in section 1037 of former Title 31, Money and Finance, prior to enactment of Title 31 by Pub. L. 97–258. 1976—Subsec. (a). Pub. L. 94–455, § 1906(b)(13)(B), sub- stituted ‘‘Secretary of the Treasury’’ for ‘‘Secretary’’ after ‘‘prescribed by the’’. Subsec. (b). Pub. L. 94–455, § 1906(b)(13)(A), struck out ‘‘or his delegate’’ after ‘‘Secretary’’. 1974—Pub. L. 93–406 designated existing provisions as subsec. (a) and added subsec. (b). Statutory Notes and Related Subsidiaries CHANGE OF NAME Committee on Governmental Affairs of Senate changed to Committee on Homeland Security and Gov- ernmental Affairs of Senate, effective Jan. 4, 2005, by Senate Resolution No. 445, One Hundred Eighth Con- gress, Oct. 9, 2004. Committee on Government Reform and Oversight of House of Representatives changed to Committee on Government Reform of House of Representatives by House Resolution No. 5, One Hundred Sixth Congress, Jan. 6, 1999. Committee on Government Reform of House of Representatives changed to Committee on Oversight and Government Reform of House of Rep- resentatives by House Resolution No. 6, One Hundred Tenth Congress, Jan. 5, 2007. Committee on Oversight and Government Reform of House of Representatives changed to Committee on Oversight and Reform of House of Representatives by House Resolution No. 6, One Hundred Sixteenth Congress, Jan. 9, 2019. Com- mittee on Oversight and Reform of House of Represent- atives changed to Committee on Oversight and Ac- countability of House of Representatives by House Res- olution No. 5, One Hundred Eighteenth Congress, Jan. 9, 2023. EFFECTIVE DATE OF 1998 AMENDMENT Pub. L. 105–206, title I, § 1101(d), July 22, 1998, 112 Stat. 697, provided that: ‘‘(1) IN GENERAL.—The amendments made by this sec- tion [amending this section and sections 4946 and 6103 of this title] shall take effect on the date of the enact- ment of this Act [July 22, 1998]. ‘‘(2) INITIAL NOMINATIONS TO INTERNAL REVENUE SERV- ICE OVERSIGHT BOARD.—The President shall submit the initial nominations under section 7802 of the Internal Revenue Code of 1986, as added by this section, to the Senate not later than 6 months after the date of the en- actment of this Act [July 22, 1998]. ‘‘(3) EFFECT ON ACTIONS PRIOR TO APPOINTMENT OF OVERSIGHT BOARD.—Nothing in this section shall be con- strued to invalidate the actions and authority of the Internal Revenue Service prior to the appointment of the members of the Internal Revenue Service Oversight Board.’’ EFFECTIVE DATE OF 1996 AMENDMENT Pub. L. 104–168, title I, § 101(c), July 30, 1996, 110 Stat. 1456, provided that: ‘‘The amendments made by this section [amending this section and section 7811 of this title] shall take effect on the date of the enactment of this Act [July 30, 1996].’’ EFFECTIVE DATE OF 1988 AMENDMENT Pub. L. 100–647, title VI, § 6235(c), Nov. 10, 1988, 102 Stat. 3737, provided that: ‘‘The amendment made by subsection (a) [amending this section] shall take effect on the date 180 days after the date of the enactment of this Act [Nov. 10, 1988].’’ EFFECTIVE DATE OF 1974 AMENDMENT Pub. L. 93–406, title II, § 1051(d), Sept. 2, 1974, 88 Stat. 951, provided that: ‘‘The amendments made by this sec- tion [amending this section and sections 5108 and 5109 of Title 5, Government Organization and Employees] shall take effect on the 90th day after the date of the enactment of this Act [Sept. 2, 1974].’’ § 7803. Commissioner of Internal Revenue; other officials (a) Commissioner of Internal Revenue (1) Appointment (A) In general There shall be in the Department of the Treasury a Commissioner of Internal Rev- enue who shall be appointed by the Presi- dent, by and with the advice and consent of the Senate. Such appointment shall be made from individuals who, among other quali- fications, have a demonstrated ability in management. (B) Term The term of the Commissioner of Internal Revenue shall be a 5-year term, beginning