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IRS Chief Will Detail Sweeping Overhaul of Agency at Hearing

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<i> Associated Press</i>

Internal Revenue Service Commissioner Charles O. Rossotti will announce today the biggest overhaul of the IRS in 45 years during testimony before the Senate Finance Committee, which is beginning work on its own bill to revamp the agency, officials said Tuesday.

The change will focus the IRS on serving taxpayers’ needs, officials said, by reorganizing the agency into “taxpayer service organizations” devoted to four categories: individual taxpayers; small businesses and the self-employed; large corporations; and pension plans, nonprofits and state and local governments.

The Rossotti proposal envisions shrinking the national IRS office, an agency briefing paper says.

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The House-passed bill the Senate plans to revise would create a new outside management board for the IRS and give taxpayers more than two dozen new rights.

Senate Finance Committee Chairman William V. Roth Jr. (R-Del.) said he wants to boost the oversight board and will examine whether it should have authority to examine individual taxpayer cases.

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