Bill Drafted to Guard Against ‘Heavy-Handed Abuse’ by IRS

Four members of Congress announced plans Tuesday to introduce legislation protecting the rights of taxpayers in dealing with the IRS.

The bill generally would shift the burden of proof in civil court cases involving tax disputes from the taxpayer to the IRS and require the agency to inform taxpayers of their rights.

“The government should never lose sight of the need to protect its citizens from heavy-handed abuse,” said Sen. David Pryor (D-Ark.), chairman of the Senate Finance subcommittee that oversees the IRS.

Sponsors of the measure, including Sen. Charles E. Grassley (R-Iowa), Sen. Harry Reid (D-Nev.) and Rep. Robin Tallon (D-S.C.), outlined several “horror stories” that they said pointed up the need to check the power of the IRS.

One case involved a Nevada woman who did not dispute the IRS claim that she owed more tax. Seven days after her lawyer worked out an installment payment agreement with the IRS, the agency impounded her car without notice.

In another, an El Dorado, Ark., businessman filed 200 forms with the IRS and was informed by mail that he would have to pay a $50-a-form penalty for not filling out the documents on the proper typewriter. When he told the IRS he used the only typewriter the business owned, he was ordered to buy a new one.

Other provisions of the bill, which will be introduced Thursday, would:

--Prohibit the IRS from evaluating its employees on the basis of how much money they collect.

--Limit the agency’s authority to conduct an investigation or surveillance of any group of taxpayers if the probe concerns their beliefs or associations. An exception would allow such an investigation of organized crime.

--Increase from 10 days to 30 days the notice required before the IRS may seize property.