Advanced Search
MyIDEAS: Login

The Collection Due Process Rights: Misstep or Step in the Right Direction?

Contents:

Author Info

  • Leslie Book

    (Villanova University School of Law)

Registered author(s):

    Abstract

    This article defends one of the more controversial parts of the Internal Revenue Service (IRS) Restructuring and Reform Act of 1998 (RRA 98) the so-called collection due process (CDP) provisions. CDP gives taxpayers the right to independent administrative and judicial review of IRS decisions to use its awesome administrative collection powers, powers that have long made the IRS a feared creditor.Prior to CDP's enactment, the IRS had the power to collect taxes from taxpayers without judicial review of administrative collection determinations. This power, atypical for creditors which often must get judicial approval for summary collection action, led many observers to criticize the IRS's powers as dangerous to individuals, even when there was no dispute that taxpayers owed back taxes. Notwithstanding this criticism, CDP's formalizing parts of the administrative collection process and interposing judicial review of certain IRS collection actions has itself been controversial for its draining of administrative resources from compliance, an issue of even greater importance in times of budget deficits. This article reveals how administrative and constitutional law principles that provide checks on arbitrary government determinations have largely been absent from tax collection adjudications. The adoption of CDP serves as a progression toward adopting broader rule of law principles in the tax system. Fidelity to rule of law has come to dominate the American legal landscape in the past century, but has been slow to make inroads in the tax system.The article addresses this challenging topic by considering IRS collection procedures, and the changes that CDP brought to that process. Second, it examines principles from administrative and constitutional law, and reveals how tax adjudications have largely been outside the mainstream of these two important external checks on agency behavior. In light of the tax law's isolation from these disciplines, it reveals that Congress and the Supreme Court have implicitly and explicitly overstated the government's interest in the collection process and understated the individual's interest. Third, in light of these administrative and constitutional law principles, it makes specific proposals to improve CDP. These proposals provide the means for policymakers to appreciate the potential for CDP to provide more meaningful taxpayer protections and minimize the aspects of CDP that are imposing significant systemic costs and straining valuable tax compliance resources.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://law.bepress.com/cgi/viewcontent.cgi?article=1000&context=villanovalwps
    Download Restriction: no

    Bibliographic Info

    Paper provided by Villanova University School of Law in its series Villanova University Legal Working Paper Series with number villanovalwps-1000.

    as in new window
    Length:
    Date of creation:
    Date of revision:
    Handle: RePEc:bep:villwp:villanovalwps-1000

    Contact details of provider:
    Web page: http://www.law.vill.edu/

    Related research

    Keywords:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:bep:villwp:villanovalwps-1000. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F. Baum).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.