FOR IMMEDIATE RELEASE Press Release #105-340

June 5, 1998

ROTH APPLAUDS CORRECTIVE ACTION BY IRS

WASHINGTON -- Senate Finance Committee Chairman William V. Roth, Jr. (R-DE) Friday applauded corrective action taken by the Internal Revenue Service that would end an improper practice by the agency. The practice was brought to the attention of the IRS in part by a letter referred to the IRS by the Senate Finance Committee.

The problem involved taxpayers who are in installment agreements with the IRS and who had been asked by the IRS to agree to extend the legal statute of limitations or face cancellation of their installment agreement. The law does not allow the IRS to terminate an installment agreement. The IRS today apologized to the approximately 20,000 taxpayers for mistakes it made in handling their accounts. The agency announced that it has stopped the improper practice and is taking steps to correct the situation for affected taxpayers.

"This action shows that the our hearings and our work on the IRS reform legislation are having an impact. It also shows that Commissioner Rossotti is listening to Congress and to taxpayers, and cares about making a difference for the better in this troubled agency. I applaud this action, and look forward to seeing more corrective actions by the agency whenever and wherever they are warranted," Roth stated.