The Problem Resolution Program or (PRP), was started in 1977 to assist taxpayers when normal communication with the Internal Revenue Service failed to solve the outstanding issues. Although the PRP program has been around for more than twenty years, it's only been in the last few years with the passage of "Taxpayer Bill of Rights" 1 and 2 that it has become effective.

Objectives. The PRP was not designed to be an alternative to the IRS appeals process, or to solve legal or technical tax questions. Rather, the PRP Program was designed to achieve three (3) specific objectives:

1. To ensure that the rights of the Tax Payer are protected and that problems not resolved through normal channels are handled expeditiously.
2. To identify the areas where taxpayers have problems with the service and bring them to the IRS' attention.
3. To be an advocate for taxpayers within the IRS, representing their interests and concerns in the services decision-making processes.

Referral to PRP. As mentioned previously, not every taxpayer problem is appropriate to be handled through the PRP. Therefore, the IRS developed criteria to determine when a problem should be referred:

• Second contact, same issue. Any contact indicating the taxpayer has not received a response at least 30 days (60 days if the issue involves filing an original or an amended return or claim) after the taxpayers initial inquiry or complaint.
• No response by date promised. Any contact indicating the taxpayer has not received a response by the date promised (including commitment dates on IRS forms).
• System failure or best interests. Any contact indicating that established systems failed to resolve the taxpayers problems or when it is in the best interests of the taxpayer or the IRS that the case be resolved in the PRP.

When a taxpayer is suffering (or is about to suffer) a significant hardship as a result of the manner in which the tax laws are administered, the IRS may issue a taxpayer assistance order (TAO). (This occurs, for example, when a taxpayer needs the refund to relieve a severe hardship, when there are delays in reissuing a refund check the IRS sent to a wrong address or if the service takes an enforcement action but the taxpayer had no notice of a tax deficiency and is not afforded an opportunity to obtain an administrative review of its validity.) TAOs cover a specific time period during which they must be followed. If the IRS issues a TAO, the taxpayer advocate will review the circumstances of the taxpayers case, during which time the IRS will suspend any enforcement action.

To apply for a TAO, taxpayers should file Form 911, Application for Taxpayer Assistance Order to Relieve Hardship, copies of which are available in IRS offices or by calling 800-TAX-FORM (800-829-3676). Applications also can be made by letter or by phone at 800-TAX-1040 (800-829-1040).