Establishing an IRS Independent Office of Appeals is part of the Taxpayer First Act. The proposed law was passed by the U.S. Senate on June 13 and is expected to be signed by the President. Currently, IRS correspondence to taxpayers explains proposed adjustments to the amount of income tax they owe and possible collection action. Although the U.S. Tax Code refers to appealing the tax amount due, no rules are in place for an appeal. Under the new law, the taxpayer’s case file will be referred to the new office. Appeals will be available to 1) individuals with adjusted gross incomes not exceeding $400,000 and 2) small-business entities with tax-year gross receipts not exceeding $5 million.