S. 2400, the Taxpayers' Procedural Safeguard Act, would revise extensively the procedural rules governing enforcement of the Internal Revenue Code. The bill would expand the types and amounts of property exempt from levy in satisfaction of unpaid liabilities and would provide new rights to review of Internal Revenue Service actions in levying on property or enforcing tax liens. The new review procedures would be both within the IRS and before the courts.

The bill would expand the circumstances under which a taxpayer is entitled to enter into an agreement with the IRS providing for installment payments of any unpaid liability. In addition, new procedural requirements would be imposed on IRS employees regarding all interviews with taxpayers, and the IRS would be bound by all written communications furnished by it to taxpayers.

The present rules granting courts discretionary authority to award attorneys fees and court costs in tax cases to prevailing parties other than the United States would be changed to make such awards mandatory. The present requirement that the prevailing parties demonstrate that the position of the United States was unreasonable would be changed. Under the bill, awards would be made if the position of the United States was not substantially justified, and the specific requirement that the prevailing party carry the burden of proof on this issue would be deleted.

Finally, the bill would establish a new, statutory Office of Taxpayer Ombudsman headed by an independent Presidential appointee approved by the Senate. The new Ombudsman would be permitted to issue"taxpayer assistance orders", which could prevent the IRS from carrying out otherwise permitted actions with respect to specific taxpayers.

The provisions of the bill would be effective on the date of enactment.