National Taxpayer Advocate Enhancement Act of 2025
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Would allow the National Taxpayer Advocate to appoint independent legal counsel within the Taxpayer Advocate Service, reporting directly to the Advocate rather than to Treasury's General Counsel — a change framed as conforming to the original congressional intent behind the 1998 IRS reform law.
What this bill would do
What it would do
The bill would amend the Internal Revenue Code of 1986 to give the National Taxpayer Advocate two expanded authorities. First, it would allow the Advocate to appoint legal counsel within the Office of the Taxpayer Advocate who reports directly to the National Taxpayer Advocate — not to the Treasury Department's General Counsel as currently required under a Treasury departmental order. Second, it would broaden the Advocate's existing personnel authority, which currently covers only employees in local taxpayer advocate offices, to cover any employee of the Taxpayer Advocate Service.
The bill's effective date is written retroactively, as if it had been included in the IRS Restructuring and Reform Act of 1998 when that law was first enacted. The bill does not change the Taxpayer Advocate Service's broader mission, organizational placement within the IRS, or relationship with taxpayers.
Key provisions
- 1Would authorize the National Taxpayer Advocate to appoint legal counsel within the Office of the Taxpayer Advocate, reporting directly to the Advocate or a delegate.
- 2Would expand the Advocate's personnel authority from employees of local taxpayer advocate offices to all employees of the Taxpayer Advocate Service.
- 3Would make both changes effective retroactively, as if enacted as part of the IRS Restructuring and Reform Act of 1998.
Who would be affected
The National Taxpayer Advocate, who would gain independent legal counsel and broader personnel control. All employees of the Taxpayer Advocate Service, who would fall under the Advocate's direct personnel authority. Taxpayers who use the Taxpayer Advocate Service could indirectly benefit if independent counsel strengthens the office's ability to act on their behalf against the IRS.
Why it matters
Currently, Treasury rules require most agency legal counsel to operate under the General Counsel, which can limit the Taxpayer Advocate's ability to obtain legal advice independent of the IRS and Treasury leadership it sometimes must challenge. Independent in-house counsel could strengthen the Advocate's ability to represent taxpayer interests without routing legal questions through officials in potential conflict.
What would change
Changes to existing law
Amends Internal Revenue Code of 1986, Section 7803(c)(2)(D)(i) (Sec. 2)
Adds authority for the National Taxpayer Advocate to appoint in-office counsel reporting directly to the Advocate, and expands personnel authority to all TAS employees.
Amends Internal Revenue Service Restructuring and Reform Act of 1998 (Sec. 2(c))
The changes are made retroactively effective as if included in section 1102 of the 1998 Act at original enactment.
Agencies directed to act
Effective dates
- All amendments — as if enacted with the IRS Restructuring and Reform Act of 1998
Funding and costs
Congressional Budget Office estimate
CBO estimates that H.R. 997 would have no significant effect on the federal budget.
H.R. 997 would authorize the National Taxpayer Advocate — the head of the Taxpayer Advocate Service within the IRS — to appoint counsel reporting directly to that office. CBO's cost estimate, published April 1, 2025, covers the bill as passed by the House on March 31, 2025. Because the change is a narrow administrative authorization affecting internal IRS staffing structure, CBO found no significant budgetary effect on direct spending, revenues, or the deficit. The estimate identified no intergovernmental or private-sector mandates.
How implementation would work
The bill is largely self-executing upon enactment. The National Taxpayer Advocate would gain immediate statutory authority to appoint legal counsel reporting directly to the Advocate and to take personnel actions for any TAS employee. No rulemaking is required, though Treasury may need to update its departmental order governing legal counsel assignments to reflect the new statutory carve-out for TAS counsel. The retroactive effective date means the authority is treated as having existed since 1998.
Legislative status & sources
Latest action
Received in the Senate and Read twice and referred to the Committee on Finance.
Official CRS summary
Show the CRS summaryHide the CRS summary
This bill authorizes the National Taxpayer Advocate to appoint legal counsel within the Taxpayer Advocate Service (TAS) to report directly to the National Taxpayer Advocate. The bill also expands the authority of the National Taxpayer Advocate to take personnel actions with respect to local taxpayer advocates (located in each state) to include actions with respect to any employee of TAS.
Currently, pursuant to a Department of the Treasury order, all legal counsel whose duties include providing legal advice to any official in any office or bureau of Treasury are part of the Legal Division within Treasury and under the supervision of the General Counsel, with limited exceptions. TAS assists taxpayers in matters involving the Internal Revenue Service (IRS) and is part of the IRS, within Treasury.
Legislative subjects
Federal officials; Lawyers and legal services; Tax administration and collection, taxpayers; Taxation
Committee report
H. Rept. 119-46