FOR RELEASE:   12/2/97                               IR-97-46    

         IRS RAISES APPROVAL LEVEL FOR PROPERTY SEIZURES

     WASHINGTON -- The Internal Revenue Service has established
interim procedures requiring higher level management approval of
seizures of property for nonpayment of federal taxes. 

     "This higher level of approval is a prudent step to ensure
that collection enforcement tools such as seizures are only used
in appropriate cases," said IRS Commissioner Charles O. Rossotti.

     Since November 24, 1997, the Collection Division Chief for
the district must approve all proposed seizures.  In addition,
the District Director must approve all seizures involving a
taxpayerþs residence, the contents of a residence, or perishable
goods.  Previously, a group manager could approve most seizures,
with the District Director's approval needed to seize a principal
residence.

     During Fiscal Year 1996, the IRS closed about 5 million
cases involving late tax payments.  In the same year, the IRS
made about 10,000 seizures of property.

     These interim procedures will remain in effect at least
until the IRS completes two ongoing nationwide reviews of its use
of enforcement tools, such as seizures and sales, and the use of
enforcement statistics in managing the Collection Division.  The
IRS expects to finish the reviews by the end of March 1998.  

     Preliminary analysis of one IRS districtþs practices
indicated that stressing productivity without a proportionate
emphasis on quality and customer service issues fostered
confusion and misperceptions.  

     The IRS started the reviews because of concerns raised
during the Senate Finance Committee hearings in September about
the use of enforcement actions and statistics.  

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