Summary of HR 997: National Taxpayer Advocate Enhancement Act of 2025

Bill Overview

• Bill Number: HR 997
• Title: National Taxpayer Advocate Enhancement Act of 2025
• Introduced: February 5, 2025
• Status: Received in the Senate; Read twice and referred to the Committee on Finance.
• Primary Sponsor: Randy Feenstra
• Cosponsor: Danny K. Davis
• Related Bill: S 1704 (companion)

Purpose and Intent

The National Taxpayer Advocate Enhancement Act of 2025 aims to strengthen the independence and effectiveness of the National Taxpayer Advocate (NTA) by explicitly granting the NTA the authority to appoint legal counsel within the Office of the Taxpayer Advocate. This change is intended to enhance the NTA's ability to advocate for taxpayer rights and resolve disputes with the Internal Revenue Service (IRS).

Key Provisions

• Authority to Appoint Counsel: The bill amends Section 7803(c)(2)(D)(i) of the Internal Revenue Code of 1986 to allow the NTA to:
  • Appoint counsel in the Office of the Taxpayer Advocate.
  • Ensure that this counsel reports directly to the NTA or a delegate.
• Conforming Amendments: The bill also makes necessary adjustments to existing law to reflect this new authority.
• Effective Date: The amendments will take effect as if they were included in the enactment of the Internal Revenue Service Restructuring and Reform Act of 1998.

Background and Need for Legislation

The Taxpayer Advocate Service (TAS) is an independent office within the IRS that assists taxpayers in resolving issues with the IRS and advocates for improvements in tax administration. The NTA is responsible for reporting to Congress on taxpayer issues and making recommendations for legislative changes.

Historically, the NTA had the ability to hire legal counsel to support its mission, but this authority was not explicitly defined in law. The 2025 Purple Book, an annual report by the NTA, highlighted the need for this legislative clarification to enhance the NTA's advocacy efforts.

Impact

• Taxpayers: The bill is designed to improve taxpayer experiences by ensuring that the NTA has the necessary resources to effectively advocate for their rights.
• IRS Operations: By empowering the NTA with legal counsel, the bill aims to facilitate better communication and resolution of taxpayer issues with the IRS.

Legislative History

• Committee Action: The bill was favorably reported by the Committee on Ways and Means on February 12, 2025, following a hearing on IRS modernization.
• House Passage: HR 997 passed the House on March 31, 2025, with a unanimous vote of 385-0.
• Senate Consideration: The bill was received in the Senate on April 1, 2025, and has been referred to the Committee on Finance for further consideration.

Conclusion

The National Taxpayer Advocate Enhancement Act of 2025 represents a significant step toward reinforcing the independence of the NTA and enhancing its ability to serve taxpayers effectively. By allowing the NTA to appoint legal counsel, the legislation seeks to improve taxpayer advocacy and ensure that taxpayer rights are upheld in dealings with the IRS.