13.1.20. TAS Taxpayer Assistance Orders (TAOs)

(1) Purpose: IRC 7811 authorizes the National Taxpayer Advocate (NTA) to issue orders, called Taxpayer Assistance Orders (TAOs), to assist taxpayers who are suffering or are about to suffer a significant hardship as a result of the manner in which the internal revenue laws are being administered by the IRS. This section contains the procedures for issuing, modifying, appealing, and rescinding TAOs.

(2) Audience: The primary users of this Internal Revenue Manual (IRM) are TAS Case Advocacy employees, the NTA, and the NTA’s staff.

(3) Policy Owner: The National Taxpayer Advocate.

(4) Program Owner: The Executive Director Case Advocacy - Intake and Technical Support.

(1) A TAO is a powerful statutory tool, delegated by the NTA to LTAs to resolve taxpayer problems. An LTA will issue a TAO to order the IRS to take any action as permitted by law, cease a certain action, or refrain from taking a certain action. A TAO may not make a substantive determination of any tax liability (see IRM 13.1.20.4(4) for further clarification). A TAO may also order the IRS to expedite consideration of the taxpayer’s case, reconsider its determination in a case or review the case at a higher level. If TAS determines that a taxpayer faces significant hardship and the facts and the law support relief, an LTA may issue a TAO when the IRS refuses or otherwise fails to take the action that TAS requested to resolve the case.

(2) A TAO is generally part of a larger process of communication between a taxpayer, TAS and the Operating Division (OD)/function. Before issuing a TAO, TAS has had a conversation with the OD/function and may have issued an Operations Assistance Request (OAR) in an attempt to resolve the matter.

(3) Generally, a TAO is issued on a single case after TAS and the OD/function fail to agree on the proper resolution of the issue(s) in the case. In appropriate circumstances, however, a bulk TAO can be issued.

(4) When the OD/function appeals the TAO or a portion of it, the OD/function must provide a written explanation, and may, if applicable, suggest alternative actions to those ordered in the TAO. It is in TAS’s discretion to adopt or reject such alternatives.

(5) In order to resolve the issue as quickly as possible, the parties should be forthcoming about the facts and the law that are relevant to the requested relief. If, for example, the IRS responds that it cannot comply with a TAO because the law or facts do not support the relief, then it should provide TAS with all relevant facts, documentation, authorities, and analysis to justify its position. Similarly, if the OD/function raises a concern in its appeal and TAS discovers or develops additional facts, documentation, or authorities that relate to this concern, then TAS should provide the OD/function with the new information. TAS may also ask the OD/function to reconsider its initial response if there are additional facts, documentation, or authorities. Finally, if the additional facts, documentation, or authorities that TAS discovers or develops indicate that the relief requested in the TAO is not warranted, TAS must rescind the TAO.

(1) When a CA encounters a situation where an agreement with the OD/function cannot be reached on the action needed to resolve a case, the CA must immediately elevate the case to the LTA. Prior to elevating the case to the LTA, the CA may have a conversation with the Lead Case Advocate (LCA) or group manager.

(2) The CA must ensure the TAMIS history and the related case folder are well documented for review. If the CA (or another person in the office with knowledge of the case, such as the LCA or TAGM) has not discussed the case with the LTA prior to the case being elevated for the issuance of a TAO, it is recommended that the CA prepare a summary of the case for the LTA. The summary should include the subject of the dispute with the IRS, the actions and the dates of the actions taken by TAS to resolve the dispute, the legal or administrative authority involved in the dispute (the IRM, the IRC, etc.), the position of the IRS regarding the dispute, the name, position, and telephone number of the OD/function person who is refusing to take the requested action, and the OD’s/function’s basis for the refusal to take the action.

(3) LTAs should consider issuing a TAO when all of the following factors are present:

1. The taxpayer is suffering or is about to suffer a significant hardship if relief is not granted. A significant hardship, which is generally defined in Treas. Reg. 301.7811-1(a)(4)(ii), includes but is not limited to the following situations:
   i. An immediate threat of adverse action.
   ii. A delay of more than 30 days in resolving taxpayer account problems. Such delay exists, for example:
   1. When a taxpayer does not receive a response by the date promised by the IRS; or
   2. When the IRS has established a normal processing time for taking an action and the taxpayer experiences a delay of more than 30 days beyond the normal processing time.
   iii. The incurring by the taxpayer of significant costs (including fees for professional representation) if relief is not granted.
   iv. Irreparable injury to, or long-term adverse impact on, the taxpayer if relief is not granted.
   v. Situations in which a system or procedure fails to operate as intended or fails to resolve the taxpayer’s problem or dispute with the IRS.
   vi. A serious privation. See IRM 13.1.18, Resolving TAS Cases.

   Note: When evaluating whether to issue a TAO, a significant hardship must exist at the time the TAO is issued. A prior IRC 7811 determination establishing a significant hardship is insufficient.

   Note: A determination that a taxpayer is experiencing a significant hardship, which is required before issuing a TAO under IRC 7811, is not the same as determining that the taxpayer is experiencing an economic hardship, which is required for purposes of releasing a levy under IRC 6343(a)(1)(D)and Treas. Reg. 301.6343-1(b)(4).

2. The significant hardship results from the manner in which the IRS is administering the internal revenue laws.

3. TAS determines that the facts and the law support the relief (i.e., the IRS is authorized to comply with the TAO, as discussed in IRM 13.1.20.4(2)).

4. TAS does not have the authority to take the actions needed to grant relief to the taxpayer or to resolve the problem.

5. The OD/function does not agree with TAS on the proper resolution of the problem or the IRS fails to perform the actions recommended by TAS.

(4) In cases where any IRS employee is not following applicable published administrative guidance (including the IRM), TAS is required by IRC 7811(a)(3) to analyze the factors in determining whether to issue a TAO in the manner most favorable to the taxpayer.

(5) Pursuant to Treasury Regulation 301.7811-1(d), a TAO may be issued to any IRS office, OD or function, including the IRS Independent Office of Appeals (Appeals), with the following exceptions:

1. Generally, a TAO may not be issued to the Office of Chief Counsel.

2. For TAOs to Criminal Investigation (CI), special rules apply. See IRM 13.1.20.5.1.1, Cases Involving Criminal Investigation.

(1) IRC 7811(b)(1) and (2) and Treas. Reg. 301.7811-1(c) provide that a TAO may require the IRS to, within a specified time, release a levy, cease any action, take any action permitted by law, or refrain from taking any action, with respect to a taxpayer under:

1. Chapter 64 (relating to collection)

2. Subchapter B of Chapter 70 (relating to bankruptcy and receiverships);

3. Chapter 78 (relating to discovery of liability and enforcement of title); or

4. Any other provision of the law which is specifically described in the TAO.

(2) A TAO may only order actions that are permitted by law and supported by the facts of the case. When deciding whether to issue a TAO, TAS makes the determination about whether the facts and the law support relief for the taxpayer. For purposes of this determination, TAS may request a legal opinion from the IRS Office of Chief Counsel. See IRM 13.1.10.2, Obtaining Legal Advice from Chief Counsel.

(3) A TAO is not a substitute for an established administrative or judicial review procedure, but is intended to supplement existing procedures.

(4) A TAO may not order the IRS to make a specific substantive determination of any tax liability, such as granting innocent spouse relief, accepting an offer in compromise (OIC), or otherwise determining a person’s tax liability. However, a TAO may advocate for a specific substantive determination. It may require the IRS to review the facts and the law and consider them in reaching a determination. In such cases, the TAO may include an analysis by TAS that applies the applicable law and other guidance to the facts.

(5) Even in situations where TAS may not order the IRS to make a particular substantive determination, it may order the IRS to:

• Expedite consideration of a case;

• Reconsider its determination in a case; or

• Review a case at a higher level.

(6) When a TAO orders the OD/function to expedite, reconsider, or review a case at a higher level, and TAS is advocating for a particular substantive determination, the TAO should include a written explanation of why it is appropriate for the IRS to make the determination.

(1) When the LTA has determined that the issuance of a TAO is necessary, the LTA should prepare a briefing document by completing the Form 9102, which contains the following:

1. The taxpayer’s name, address, TIN, tax period involved, and type of tax involved;

2. The name, position, address, telephone and fax numbers of the IRS official to whom the TAO is issued;

3. Actions required to relieve the taxpayer’s significant hardship;

4. The date the required action should be taken;

5. The date by which the OD/function should notify TAS whether the required action will be taken;

6. Basis for issuance of TAO (i.e., the significant hardship that the taxpayer is experiencing or is about to experience as a result of the actions or inactions of the IRS);

7. Relevant facts of the case;

8. Applicable authorities (e.g., IRC, Treasury Regulations, revenue rulings, revenue procedures, cases, notices, IRMs, Counsel opinions, IRS FAQs);

9. The taxpayer rights being affected by the actions or inactions of the IRS. Specific references to the appropriate right(s) from TBOR must be mentioned. 

10. Analysis (application of applicable authorities to the facts of the case);

11. Prior relevant contacts with the OD/function which include the name, date, and telephone number;

12. A chronological timeline of relevant actions in the case;

13. List of relevant attachments;

14. The name, address, and telephone number of the LTA issuing the TAO; and

15. The signature of the LTA.

(2) LTAs must use the TAO Checklist to ensure the necessary steps have been taken prior to issuing a TAO. See Exhibit 13.1.20-1.

(3) Document the significant hardship determination. SeeIRM 13.1.18.9, Making an IRC 7811 Significant Hardship Determination, for more information. A significant hardship MUST exist at the time the TAO is issued.

(4) When determining both the date by which the OD/function should notify TAS of its response and the date by which the OD/function should take the action specified in the TAO, the LTA should provide a reasonable timeframe for the IRS to both respond and take the action(s) based on the facts and circumstances of the case.

(5) The TAO should remind the OD/function about the imminent expiration of any relevant limitations periods.

(6) In deciding to issue a TAO, the LTA may consult with Internal Technical Advisor Program (ITAP) employees as well as Technical Analysis and Guidance (TAG) employees. If questions remain after consulting with ITAP and TAG, the LTA may consult with the DEDCA or their staff, the NTA’s staff (e.g., analysts, tax legal specialists, or attorney advisors), and the Office of the Division Counsel/Associate Chief Counsel (NTA Program) (if advice is needed on issuing or drafting the TAO). If legal advice is needed, generally the field offices of the Division Counsel (Small Business/Self Employed) provide legal support or advice to TAS. See IRM 13.1.10.2, Obtaining Legal Advice from Chief Counsel. If, however, legal advice is needed about the TAO authority in general or the scope of a TAO, consult the Office of the Division Counsel/Associate Chief Counsel (NTA Program).

(7) When a TAO is issued, a copy of Form 9102 or a briefing document must be sent to the “&TAS TAO” Outlook distribution list, via secured email, with a copy uploaded to TAMIS Attachments. See IRM 13.1.11.2.1.4, Document Attachments.

(8) When a TAO is issued, the LTA or other designated TAS employee with TAMIS permission level 4 or above must add a TAO record to TAMIS Taxpayer Screen 6. The following TAMIS fields are required:

1. TAO Issue Date;

2. TAMIS Issue Code;

   Reminder: The TAO Issue Code is specific to the issue addressed in the TAO; this issue may differ from the Primary Core Issue Code (PCIC). For example, if the taxpayer came to TAS for a levy release, the case PCIC may be 710 even if the TAO orders the IRS to consider a DDIA, which is issue code 753. In this example, the TAO issue code should be 753. The TAO Issue Code should never be the generic codes 000, 100, 200, 300, 400, 500, 600, 700, 800, or 900.

3. TAO Requested Completion Date;

4. BOD TAO Assigned and BOD & Unit;

   Reminder: The BOD TAO Assigned, and BOD Unit fields should correspond with the information obtained from the TAMIS OAR Drill Down Tables and Discovery Directory for the recipient of the TAO. This field is fillable either by using the drop-down menu or, when a drop-down option is not available, the coding can be typed in the field using all CAPS.

5. Form 9102 Checkbox;

6. TAO Resolution Requested;

7. Reason for TAO; and

8. Status.

(9) When a written appeal is received, the issuing official, usually the LTA, will upload a copy of the appeal to TAMIS Attachments, forward a copy to the “&TAS TAO” Outlook distribution list and update the following fields on TAMIS Taxpayer Screen 6:

1. Status; and

2. TAO Appeal Section.

   Note: Not every TAO is appealed by the OD/function. However, for those TAOs that are appealed, TAMIS Taxpayer Screen 6 should be updated in real-time as the appeal progresses. All communications and documents, including sustaining memoranda and subsequent OD/function appeals relating to the TAO must be uploaded to TAMIS Attachments and a copy should be sent to the “&TAS TAO” Outlook distribution list

   .

(10) When the TAO (and TAO appeal process, in certain cases) is completed, the LTA will upload a copy of the completed TAO, if available, to TAMIS Attachments and send a copy to the “&TAS TAO” Outlook distribution list. Additionally, the issuing official will update the following fields on TAMIS Taxpayer Screen 6:

1. Disposition of TAO;

2. Relief Code;

3. Relief Date;

4. Assistance Code; and

5. TAO Closed Date.

(1) If the OD/function does not agree with the action ordered in a TAO, the OD/function can appeal the TAO. The responsible official or those in the responsible official’s management chain retain the ultimate responsibility for taking the action or declining to take the action ordered by a TAO.

(2) All parties to the TAO appeal process are encouraged to dialogue with each other prior to a final decision being made on the action sought by TAS in the TAO by a deciding official.

(1) Upon a taxpayer's request for a copy of the TAO, TAS employees should explain that the NTA must approve the release of applicable material but that the employee will make the request for the taxpayer. The taxpayer is not required to submit a Freedom of Information Act (FOIA) request.

(2) Before releasing a TAO, the TAS employee who issued it will:

1. Wait until the IRS or TAS has rendered a final decision on the issues addressed in the TAO and there is not an appeal of the TAO pending;

2. Review the TAO to identify any information that must be redacted, such as information about another taxpayer or information that should be withheld under FOIA (see IRM 13.1.20.7(3) for guidance); and

3. Forward the TAO with any recommended redactions up their management chain to the NTA for a final decision.

(3) For questions about whether information should be redacted, there are a variety of resources available to TAS employees. IRM 11.3.13,Freedom of Information Act, contains guidance on the types of information that is exempt from public disclosure. TAS employees may also contact the Disclosure help desk by email at *Disclosure, or by telephone at 1-866-591-0860.

(4) TAS employees who cannot release information that a taxpayer has requested should inform the taxpayer that IRS employees who are actively working a taxpayer’s case may be able to provide access to certain information. See IRM 4.26.14.4, Disclosure of Tax Information. For example, IRS employees working open cases are generally directed to give taxpayers “routine access” to their files (including copies of work papers and other records) unless doing so would impair enforcement, as described on the IRS website.

(5) If the IRS employee who is actively working the case does not release the information, or if the taxpayer would like to obtain documents that TAS cannot release, the taxpayer can make a FOIA request, as described in the IRS FOIA Guide on the IRS website.

(1) A TAO case folder should be clearly labeled and assembled in the order listed below, whether it is prepared or transmitted on paper or electronically. Although this information should be uploaded to TAMIS, some TAO reviewers may not have access to TAMIS.
The outside front of the folder (or electronic folder) should be labeled with the taxpayer name and TAMIS case file number. Not all of the information listed below will be relevant to the issuance of the TAO in every case. In addition, only information relevant to the tax year(s) of the TAO should be included. Unless otherwise indicated, copies, not originals, of all information should be submitted. The tab headings (or electronic file names) are listed in bold and may not be all inclusive:

(2) Left Side of Folder (top to bottom, if using paper files)

• Form 9102 - Original Taxpayer Assistance Order (TAO).

• TAO Summary Attachment(required) - CA Facts of the case, including a detailed timeline of case actions.

• (SB/SE, W & I, LB&I, TE/GE, Appeals or Counsel) Rebuttal- Original written appeal to the Form 9102 from the OD/function.

• Form 911 or Incoming Correspondence - Copy of the Form 911, Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order), or written/verbal request for assistance.

• Hardship Validation - Documentation to confirm IRC 7811 determination of significant hardship, which may include oral statements documented in TAMIS.

• Operations Assistance Requests (OARs) - Copies of OARs that have been issued.

(3) Right side of Folder (top to bottom, if using paper files)

• TAMIS(required) - Form 911 prints for all cases relating to the TAO issue [See IRM 13.1.20.3].

• IDRS(required) - All appropriate IDRS prints (ENMOD, SUMRY, TXMOD, IMFOL, BMFOL, INTST, AMDIS, etc.)

  Note: The starting page for each command code should also be tabbed.

• E-trak- Copy of any E-trak control and incoming correspondence, if it exists.

• Returns - If warranted, copies of returns (not originals), in descending order (most recent return on top).

(4) EXAMINATION INFORMATION - Of the tab headings listed below, only include the information that is relevant to the issuance of the TAO.

• Open Exam- Documentation taxpayer has submitted to Exam for consideration.

• Revenue Agent Reports (RAR)/CP2000- Copies of CP2000 or Revenue Agent Reports (not originals).

• Statutory Notices of Deficiency (SNOD) - Copies of any Statutory Notices of Deficiency.

• Audit Reconsideration - Audit reconsideration support (Form 886-H information, substantiation of disallowed/questioned expenses, etc.).

(5) COLLECTION INFORMATION - Of the tab headings listed below, only include the information that is relevant to the issuance of the TAO.

• Notice of Federal Tax Liens (NFTL’s) - Copies of any Notices of Federal Tax Lien filed, released, or withdrawn.

• Collection Information Statement (CIS) - Taxpayer financial information (Form 433-A and Form 433-B) including national asset locator research.

• Notices of Levy - Copies of any Notice of Levy or Release of Levy.

• Collection Appeals Process (CAP)/ Collection Due Process (CDP) - Any information relating to the Collection Appeals Process or Collection Due Process (or Equivalent Hearing), including a copy of Form 12153, Request for a Collection Due Process Hearing (Also included under this tab would be any response from Appeals regarding a CDP hearing).

• Installment Agreements (IAs) - Copies of any Installment Agreements.

• Offer In Compromise (OIC) Information - Form 656, rejection letter(s), taxpayer appeal of rejected OIC, etc.

• Trust Fund Recovery Penalty (TFRP) - Trust Fund Recovery Penalty information, including the Form 4180, Report of Interview with Individual Relative to Trust Fund Recovery Penalty or Personal Liability for Excise Tax.

• Bankruptcy - Any bankruptcy information.

(6) APPEALS INFORMATION - Only include information that is relevant to the issuance of the TAO issue.

• Appeals - Copies of any Appeals information (closing agreements, Form 870, letters from Appeals).

(7) OTHER INFORMATION - Of the tab headings listed below, only include the information that is relevant to the issuance of the TAO.

• Internal Revenue Manual (IRM) - Copies of relevant IRM Sections (TAS IRM, Function IRM’s, SERP Alerts, Operating Division Memorandums, etc.).

• Legal Research - Copies of the IRC, regulations, and court cases in support/defense of TAO court cases.

• Counsel Opinions - Opinions from Counsel regarding the TAO issue, LTA/DEDCA position on Counsel opinion.

• Waivers - Form 900 (CSED) or Form 2750 (ASED).

• Correspondence - Copies of correspondence sent between TAS and the IRS, in descending order (most recent date on top).

• Automated Collection System (ACS) - Applicable ACS screen prints, including the history in descending order.

• Integrated Collection System (ICS) - Applicable ICS screen prints, including the history in descending order.

• Desktop Integration (DI) - Applicable DI screen prints.

• Third Party Authorization - Form 2848, Power of Attorney, or Form 8821, Tax Information Authorization.

• Other - Any misc. documents (payroll records, Form W-2 & Form W-3) and anything not included in one of the categories above.

1. The TAO should be clear, direct, and easy to understand. Direct and easy to understand means no jargon or acronyms that are difficult for any reader to understand, especially readers who do not work with IRS programs and command codes often. The TAO should lead the reader to agree with the action(s) ordered.

2. Whenever possible, the TAO must include references to applicable legal and procedural rules, such as the IRC, Treasury Regulations, case law, IRM, and Taxpayer Bill of Rights.

3. Only relevant information and authorities should be included in the TAO. The TAO explains why the IRS should take the action directed by TAS. Irrelevant information or authorities will distract the OD/function from reaching the conclusion that it should comply with the TAO.

4. The TAO is an opportunity for TAS to explain the significant hardship that the taxpayer is experiencing or will suffer if the OD/function does not comply with the TAO.

5. Do not write emotionally.

6. When including short quotations of three (3) lines or less, use quotation marks to set the quotation off from the text so that the reader can determine where the quotation begins and ends. For longer quotations, indent the quoted text.

   Note: Although small quotations can be helpful, it is not necessary to copy large blocks of text from publicly-available authorities (i.e., the IRC or IRM) into the TAO. A citation or reference is usually sufficient.

7. When typing, used mixed case rather than ALL CAPITAL LETTERs.

8. Write in complete sentences and be specific as to what facts and circumstances warrant the issuance of the TAO.

9. Each point raised in the analysis section should be organized as follows:

   1. state the issue;

   2. identify the law - cite the relevant rule or authorities that are the basis for the position (e.g., the IRC, Treasury Regulations, case law, counsel opinion, IRM, etc.);

   3. provide analysis - apply relevant facts to the rule, referencing documents or other sources that form the basis of any factual conclusions; and

   4. order action(s) - state the specific action(s) or outcome(s) necessary to provide appropriate relief based upon the analysis.

   Note: The TAO is an order, not a request. Use language that makes this clear and direct.

(1) 1) TAOs began as a delegated authority. In 1979, recognizing that normal operating procedures do not always resolve taxpayer problems, the IRS established a Taxpayer Ombudsman to administer its Problem Resolution Program (PRP). PRP was to resolve problems not remedied through normal operating procedures or administrative channels. The IRS authorized the Taxpayer Ombudsman to issue orders to affect immediate review of IRS actions. This authority was delegated to local Problem Resolution Officers (PROs), which were appointed by an IRS District Director or Regional Director of Appeals.

(2) 2) Statutory authority for TAOs was initially very limited. The Technical and Miscellaneous Revenue Act of 1988 (TBOR1), Pub. L. No. 100-647, § 6230, 102 Stat. 3342, 3733 (1988) first provided the Taxpayer Ombudsman with statutory authority to issue a TAO:

1. If the Taxpayer Ombudsman determined that a taxpayer was suffering or about to suffer a significant hardship as a result of the manner in which the internal revenue laws were being administered, they could issue a TAO. PROs were delegated authority to issue TAOs.

2. A TAO could require the IRS to release levied property, cease any action or refrain from taking action, but not to take other affirmative actions.

3. A wide range of IRS employees, including a district director, service center director, compliance center director, regional director of Appeals, or a superior of any of these employees could modify or rescind a TAO.

(3) 3) In 1991 and 1995, the Oversight Initiative Reports by the Subcommittee on Oversight of the House Committee on Ways and Means recommended expanding the authority of the Taxpayer Ombudsman to issue TAOs that were needed but not then authorized. For example, to issue refunds, reissue checks sent to the wrong address, or require a review of proposed collection actions. The committee also recommended reducing the number of people who could modify or rescind a TAO. See Ways and Means Committee Print 102-28 at 2-3 (Nov. 14, 1991); Ways and Means Committee Print 104-8 at 2-4 (Sept. 14, 1995).

(4) 4) The Taxpayer Bill or Rights (TBOR 2), Pub. L. No. 104-168, 102, 110 Stat. 1456 (1996), provided that TAOs could order the IRS to affirmatively take any action permitted by law within a specified period and limited the IRS’s ability to modify or rescind them. TBOR 2 also replaced the Taxpayer Ombudsman with the Taxpayer Advocate position and implemented several of the Subcommittee’s recommendations to broaden the Taxpayer Advocate’s TAO authority. Specifically, TBOR 2:

1. Authorized TAOs to order the IRS to “take any action as permitted by law” rather than just return levied property, cease any action, or refrain from any action.

2. Authorized TAOs to order the IRS to take the action “within a specified period.”

3. Limited those who could modify or rescind a TAO to include only the Taxpayer Advocate, the Commissioner of Internal Revenue, or the Deputy Commissioner of Internal Revenue.

4. Required the Commissioner of Internal Revenue or Deputy Commissioner of Internal Revenue to provide the Taxpayer Advocate with a “written explanation” of the reasons for any modification or rescission.

(5) 5) The Internal Revenue Service Restructuring and Reform Act of 1998 (RRA 98), Pub. L. No. 105-206, § 1102, 112 Stat. 685, 703 (1998), expanded TAO authority, and required the NTA (Taxpayer Advocate was changed to National Taxpayer Advocate) to report to Congress on various items, including any TAOs that were not honored in a timely manner. See Hearing Before the Subcommittee on Oversight of the Committee on Ways and Means, Serial 105-30, 78 (July 24, 1997). For further discussion of RRA 98, see IRM 13.1.2.4.4, Significant Hardship.

(6) 6) RRA 98 clarified that the NTA would make the significant hardship determination. It also expanded the definition of significant hardship by providing four (4) non-inclusive examples of situations that would qualify. These examples are

1. an immediate threat of adverse action;

2. a delay of more than thirty (30) days in resolving taxpayer account problems;

3. the incurring by the taxpayer of significant costs (including fees for professional representation) if relief is not granted; or

4. irreparable injury to, or a long-term adverse impact on, the taxpayer if relief is not granted.

(7) 7) RRA 98 specifically authorized the Secretary to prescribe regulations. See IRC 7811(a).The conference report to RRA 98 contemplated that regulations would define additional circumstances in which a TAO could be issued “based on considerations of equity.” H.R. Conf. Rept. 105-599, at 217 (1998).

(8) 8) Treasury Regulations, finalized in 2011, explain that a significant hardship means a serious privation caused or about to be caused to the taxpayer as a result of the particular manner in which the revenue laws are being administered by the IRS. It includes situations in which a system or procedure (1) fails to operate as intended or (2) fails to resolve the taxpayer’s problem or dispute with the IRS. See Treas. Reg. 301.7811-1(a)(4)(ii).

(9) 9) RRA 98 also provided that where any IRS employee is not following administrative guidance, including the IRM, the NTA shall construe the factors taken into account in determining whether to issue a TAO in a manner most favorable to the taxpayer. See IRC 7811(a)(3).

(10) 10) IRC 7811(f) provides that a reference to "National Taxpayer Advocate" includes any designee of the NTA. Accordingly, the NTA has delegated to the LTAs the authority to issue TAOs, which is similar to the authority that had been delegated to the PROs before them. See IRM 1.2.2.13.1,Delegation Order 13-1 (Rev.1), Authority to Issue, Modify or Rescind Taxpayer Assistance Orders.

(11) 11) The American Jobs Creation Act of 2004, (Jobs Act) further expanded TAO authority. The Jobs Act provided that TAOs could be issued to private debt collectors. See Pub. L. No. 108-357, 881(c), 118 Stat. 1418, 1626-27 (2004) and IRC 7811(g).