Part II. National Sales and Use Tax

SECTION 4. REVISION OF THE INTERNAL REVENUE SERVICE
 

(A) The Secretary of the Treasury shall reorganize the Internal Revenue Service, which shall hereafter be known as the National Tax Service, to administer the collection of the national sales and use tax.

(B) The National Tax Service shall be structured by Regions and Districts, with Regions being defined by recognized state and territory boundaries, and Districts being defined by federal Congressional districts; with appropriate Delegations of Authority issued annually to a National Executive Director, to each Regional Executive Director and to each District Director.

(C) The Secretary of the Treasury shall supervise the organization of the National Tax Service, creating such rules, regulations and procedures as are consistent with law and as are required to secure the efficient collection of the national sales and use tax.

(D) The Secretary of the Treasury is hereby charged to structure the National Tax Service and to organize its rules, regulations and procedures to make the system as paperless as possible and to take maximum advantage of state sales and use tax systems.

(E) The functions of the existing Internal Revenue Service shall remain in place and continue operation, concurrent with the new National Tax Service, for one year from the date on which the income tax is abolished, to complete and close the books on all income tax liabilities that were due and payable on or before the date of their abolishment. Outstanding income tax liabilities that cannot be cost-effectively collected within this period will be discharged by writing them off as uncollectible.

(F) The Secretary of the Treasury is hereby authorized to expend the additional money necessary to accomplish the objectives set forth herein, these added expenditures not to exceed in amount the actual expenditures for federal revenue collection in the previous year.

Read Explanation and Details for Section 4.