H.R. 997 Creates Independent Legal Counsel for the National Taxpayer Advocate

# What H.R. 997 does and why it matters

# The statutory changes in plain terms Section 2 of the Act modifies subsection 7803(c)(2)(D)(i) in two principal ways:

• It inserts a new subclause authorizing the NTA to appoint counsel in the Office of the Taxpayer Advocate who report directly to the NTA (or delegate).
• It broadens personnel authority by changing text that limited supervisory reach to "any employee of any local office of a taxpayer advocate" to cover "any employee of the Office of the Taxpayer Advocate," extending the NTA's authority across TAS nationwide.

The law also specifies a retroactive effective date: these amendments will be treated as if included when Congress enacted Section 1102 of the IRS Restructuring and Reform Act of 1998.

# Background: what the change corrects

H.R. 997 aligns the statutory text with the original congressional intent in the Restructuring and Reform Act of 1998, which anticipated independent legal support for the Taxpayer Advocate Service.

# Practical effects for tax practitioners For CPAs, enrolled agents, and other practitioners who represent taxpayers before the IRS, the Act produces several concrete outcomes:

• Taxpayer Advocate Directives and the Annual Report: Legal analysis underpinning Taxpayer Advocate Directives (TADs) and the NTA's statutory Annual Report to Congress should reflect independent legal judgment tied to TAS's advocacy role, which may strengthen the authority and persuasiveness of those documents.

• Taxpayer Bill of Rights enforcement: Independent TAS counsel reinforces protections connected to the Taxpayer Bill of Rights embedded in IRC § 7803(a)(3), including the rights to quality service, to challenge the IRS's position, and to a fair tax system.

# Retroactivity and legal harmonization Section 1102 of RRA '98 was enacted. That treatment aims to validate TAS's independent legal status going back to the service's statutory creation and to harmonize past and future TAS operations with the statute as Congress now clarified.

# Bottom line for practitioners H.R. 997 shifts TAS legal support out of the Treasury legal supervisory chain and places it directly under the NTA with expanded personnel reach. Expect TAS legal opinions, directives, and TAO-related reviews to reflect that independence, which could affect how practitioners frame requests, appeals, and petitions involving TAS involvement.