I. Legislative Background
The National Commission on Restructuring the Internal Revenue Service
(the "Commission") was established to review the practices of the IRS and
to make recommendations for modernizing and improving its efficiency and
taxpayer services. The Commission report was issued on June 25, 1997, and
contained recommendations relating to executive branch governance and
management of the IRS, Congressional oversight of the IRS, personnel
flexibilities, customer service and compliance, technology modernization,
electronic filing, tax law simplification, taxpayer rights and financial
S. 1096 (the "Internal Revenue Service Restructuring and Reform Act of
1997"), introduced on July 30, 1997, by Senators Kerrey and Grassley,
generally followed the Commission's recommendations. A similar bill, H.R.
2676, was passed by the House on November 5, 1997.