S. 4046, Simplify, Don’t Amplify the IRS Act
Summary
Senate bill S. 4046 of the 117th Congress, 2d Session, was introduced April 7, 2022, to amend the Social Security Act to remove the restriction on the use of Coronavirus State Fiscal Recovery funds and to amend the Internal Revenue Code of 1986 to codify the Trump administration rule on reporting requirements of exempt organizations. Braun introduced it, and it was referred to the Committee on Finance. The short title is the ‘‘Simplify, Don’t Amplify the IRS Act’’. Section 101 amends paragraph (2) of section 602(c) of the Social Security Act to read that no State or territory may use funds made available under the section for deposit into any pension fund.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
- Issuer
- Congressional materials
- Document type
- Bills Bills 117S4046Is Bills 117S4046Is
- Case
- Bills Bills 117S4046Is Bills 117S4046Is
Cite this document
“S. 4046, Simplify, Don’t Amplify the IRS Act.”
Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/bills-bills-117s4046is-bills-117s4046is/
, SHA-256 5555344333be2aa55d0081c2628aa077da1736d8ead783535c618216f904c945.Full text
II
117TH CONGRESS
2D SESSION
S. 4046
To amend the Social Security Act to remove the restriction on the use
of Coronavirus State Fiscal Recovery funds, to amend the Internal Rev-
enue Code of 1986 to codify the Trump administration rule on reporting
requirements of exempt organizations, and for other purposes.
IN THE SENATE OF THE UNITED STATES
APRIL 7, 2022
Mr. BRAUN introduced the following bill; which was read twice and referred
to the Committee on Finance
A BILL
To amend the Social Security Act to remove the restriction
on the use of Coronavirus State Fiscal Recovery funds,
to amend the Internal Revenue Code of 1986 to codify
the Trump administration rule on reporting requirements
of exempt organizations, and for other purposes.
1 Be it enacted by the Senate and House of Representa-
2 tives of the United States of America in Congress assembled,
3 SECTION 1. SHORT TITLE.
4 This Act may be cited as the ‘‘Simplify, Don’t Am-
5 plify the IRS Act’’.
pamtmann on DSKBC07HB2PROD with BILLS
VerDate Sep 11 2014 16:10 Apr 11, 2022 Jkt 029200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S4046.IS S4046
2
1 TITLE I—CORONAVIRUS STATE
2 FISCAL RECOVERY FUNDS
3 SEC. 101. REMOVAL OF RESTRICTION OF USE OF
4 CORONAVIRUS STATE FISCAL RECOVERY
5 FUNDS.
6 (a) IN GENERAL.—Paragraph (2) of section 602(c)
7 of the Social Security Act, as added by section 9901 of
8 the American Rescue Plan Act of 2021, is amended to
9 read as follows:
10 ‘‘(2) FURTHER RESTRICTION ON USE OF
11 FUNDS.—No State or territory may use funds made
12 available under this section for deposit into any pen-
13 sion fund.’’.
14 (b) CONFORMING AMENDMENTS.—Section 602 of
15 such Act is further amended—
16 (1) in subsection (d)(2)(A), by striking ‘‘, in-
17 cluding, in the case of a State or a territory, all
18 modifications to the State’s or territory’s tax rev-
19 enue sources during the covered period’’;
20 (2) in subsection (e), by striking ‘‘such sub-
21 section,’’ and all that follows through the period and
22 inserting ‘‘such subsection.’’; and
23 (3) in subsection (g)—
pamtmann on DSKBC07HB2PROD with BILLS
24 (A) by striking paragraph (1); and
•S 4046 IS
VerDate Sep 11 2014 16:10 Apr 11, 2022 Jkt 029200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S4046.IS S4046
3
1 (B) by redesignating paragraphs (2)
2 through (7) as paragraphs (1) through (6), re-
3 spectively.
4 (c) EFFECTIVE DATE.—The amendments made by
5 this section shall take effect as if included in the enact-
6 ment of the American Rescue Plan Act of 2021.
7 TITLE II—PROVISIONS RELAT-
8 ING TO TAX ADMINISTRATION
9 AND TAXPAYER PROTECTION
10 SEC. 201. PREVENTING WEAPONIZATION OF THE INTERNAL
11 REVENUE SERVICE.
12 (a) ORGANIZATIONS EXEMPT FROM REPORTING.—
13 (1) GROSS RECEIPTS THRESHOLD.—Clause (ii)
14 of section 6033(a)(3)(A) of the Internal Revenue
15 Code of 1986 is amended by striking ‘‘$5,000’’ and
16 inserting ‘‘$50,000’’.
17 (2) ORGANIZATIONS DESCRIBED.—Subpara-
18 graph (C) of section 6033(a)(3) of the Internal Rev-
19 enue Code of 1986 is amended—
20 (A) by striking ‘‘and’’ at the end of clause
21 (v),
22 (B) by striking the period at the end of
23 clause (vi) and inserting a semicolon, and
pamtmann on DSKBC07HB2PROD with BILLS
24 (C) by adding at the end the following new
25 clauses:
•S 4046 IS
VerDate Sep 11 2014 16:10 Apr 11, 2022 Jkt 029200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S4046.IS S4046
4
1 ‘‘(vii) any other organization described
2 in section 501(c) (other than a private
3 foundation or a supporting organization
4 described in section 509(a)(3)); and
5 ‘‘(viii) any organization (other than a
6 private foundation or a supporting organi-
7 zation described in section 509(a)(3))
8 which is not described in section
9 170(c)(2)(A), or which is created or orga-
10 nized in a possession of the United States,
11 which has no significant activity (including
12 lobbying and political activity and the op-
13 eration of a trade or business) other than
14 investment activity in the United States.’’.
15 (3) EFFECTIVE DATE.—The amendments made
16 by this subsection shall apply to taxable years end-
17 ing after the date of the enactment of this Act.
18 (b) CLARIFICATION OF APPLICATION TO SECTION
19 527 ORGANIZATIONS.—
20 (1) IN GENERAL.—Paragraph (1) of section
21 6033(g) of the Internal Revenue Code of 1986 is
22 amended—
23 (A) by striking ‘‘This section’’ and insert-
pamtmann on DSKBC07HB2PROD with BILLS
24 ing ‘‘Except as otherwise provided by this sub-
25 section, this section’’, and
•S 4046 IS
VerDate Sep 11 2014 16:10 Apr 11, 2022 Jkt 029200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S4046.IS S4046
5
1 (B) by striking ‘‘for the taxable year.’’ and
2 inserting ‘‘for the taxable year in the same
3 manner as to an organization exempt from tax-
4 ation under section 501(a).’’.
5 (2) EFFECTIVE DATE.—The amendments made
6 by this subsection shall apply to taxable years end-
7 ing after the date of the enactment of this Act.
8 (c) REPORTING OF NAMES AND ADDRESSES OF CON-
9 TRIBUTORS.—
10 (1) IN GENERAL.—Paragraph (1) of section
11 6033(a) of the Internal Revenue Code of 1986 is
12 amended by adding at the end the following: ‘‘Ex-
13 cept as provided in subsections (b)(5) and (g)(2)(B),
14 such annual return shall not be required to include
15 the names and addresses of contributors to the orga-
16 nization.’’.
17 (2) APPLICATION TO SECTION 527 ORGANIZA-
18 TIONS.—Paragraph (2) of section 6033(g) of the In-
19 ternal Revenue Code of 1986 is amended—
20 (A) by striking ‘‘and’’ at the end of sub-
21 paragraph (A),
22 (B) by redesignating subparagraph (B) as
23 subparagraph (C), and
pamtmann on DSKBC07HB2PROD with BILLS
24 (C) by inserting after subparagraph (A)
25 the following new subparagraph:
•S 4046 IS
VerDate Sep 11 2014 16:10 Apr 11, 2022 Jkt 029200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S4046.IS S4046
6
1 ‘‘(B) containing the names and addresses
2 of all substantial contributors, and’’.
3 (3) EFFECTIVE DATE.—The amendments made
4 by this subsection shall apply to taxable years end-
5 ing after the date of the enactment of this Act.
6 SEC. 202. LIMITATION ON TAXPAYER FUNDED UNION OFFI-
7 CIAL TIME FOR INTERNAL REVENUE SERV-
8 ICE EMPLOYEES.
9 (a) IN GENERAL.—Section 7131 of title 5, United
10 States Code, is amended by adding at the end the fol-
11 lowing:
12 ‘‘(e) The authority provided under subsection (d)
13 shall not apply with respect to the Internal Revenue Serv-
14 ice, or an employee of the Internal Revenue Service, dur-
15 ing the period each year beginning on February 12 and
16 ending on April 15.’’.
17 (b) CONFORMING AMENDMENT.—Section 7131(d) of
18 title 5, United States Code, is amended, in the matter pre-
19 ceding paragraph (1), by striking ‘‘preceding’’ and insert-
20 ing ‘‘other’’.
21 (c) APPLICATION.—The amendments made by sub-
22 sections (a) and (b) shall apply to any collective bar-
23 gaining agreement entered into after the date of enact-
pamtmann on DSKBC07HB2PROD with BILLS
24 ment of this section.
•S 4046 IS
VerDate Sep 11 2014 16:10 Apr 11, 2022 Jkt 029200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S4046.IS S4046
7
1 SEC. 203. PROTECTING TAXPAYER PRIVACY.
2 (a) INCREASE OF PENALTY FOR UNAUTHORIZED
3 DISCLOSURE OF TAXPAYER INFORMATION.—
4 (1) IN GENERAL.—Paragraph (1) of section
5 7213(a) of the Internal Revenue Code of 1986 is
6 amended by striking ‘‘$5,000’’ and inserting
7 ‘‘$250,000’’.
8 (2) DISCLOSURES BY TAX RETURN PRE-
9 PARERS.—Subsection (a) of section 7216 of the In-
10 ternal Revenue Code of 1986 is amended by striking
11 ‘‘$1,000 ($100,000 in the case of a disclosure or use
12 to which section 6713(b) applies)’’ and inserting
13 ‘‘$250,000’’.
14 (3) EFFECTIVE DATE.—The amendments made
15 by this subsection shall apply to disclosures made on
16 or after the date of the enactment of this Act.
17 (b) REMOVAL.—
18 (1) IN GENERAL.—Section 7701(c)(1)(A) of
19 title 5, United States Code, is amended by inserting
20 ‘‘or in the case of an action involving a removal from
21 the service for an alleged violation of section
22 7213(a)(1) of the Internal Revenue Code of 1986,’’
23 after ‘‘described in section 4303,’’.
24 (2) RULE CONSTRUCTION.—The amend-
pamtmann on DSKBC07HB2PROD with BILLS
OF
25 ments made by paragraph (1) may not be construed
26 to permit an officer or employee of the United
•S 4046 IS
VerDate Sep 11 2014 16:10 Apr 11, 2022 Jkt 029200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S4046.IS S4046
8
1 States to submit an appeal to the Merit Systems
2 Protection Board if that individual is dismissed from
3 office or discharged from employment upon convic-
4 tion for a violation of section 7213(a)(1) of the In-
5 ternal Revenue Code of 1986.
6 TITLE III—RESTRAINTS ON IRS
7 ENFORCEMENT
8 SEC. 301. TAX GAP PROJECTION.
9 (a) IN GENERAL.—Not later than 180 days after the
10 date of the enactment of this section, and no later than
11 July 31 annually thereafter, the Commissioner of Internal
12 Revenue shall submit to Congress a projection detailing
13 the tax gap estimate for the most recent taxable year as
14 is practicable using the most recently available data, and
15 including identification and detailed descriptions of the
16 data used for such projection and clear identification of
17 the amount of the projected tax gap associated with non-
18 filing, underreporting, and underpayment (including iden-
19 tifying the amount subject to collection actions).
20 (b) USE OF ARTIFICIAL INTELLIGENCE.—To the ex-
21 tent practicable, for purposes of reducing the burden on
22 taxpayers subject to National Research Program audits,
23 the Commissioner shall use artificial intelligence, including
pamtmann on DSKBC07HB2PROD with BILLS
24 neural machine learning, and other available data analysis
•S 4046 IS
VerDate Sep 11 2014 16:10 Apr 11, 2022 Jkt 029200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S4046.IS S4046
9
1 tools, including commercial analytic data providers, to cal-
2 culate a projection described in subsection (a).
3 (c) NATIONAL RESEARCH PROGRAM AUDITS.—In
4 calculating a projection described in subsection (a), the
5 Commissioner of Internal Revenue shall not undertake
6 more National Research Program audits in any one fiscal
7 year than are undertaken in fiscal year 2021.
8 (d) TAX GAP.—For purposes of this section, the term
9 ‘‘tax gap’’ means the difference between tax liabilities
10 owed to the United States under the Internal Revenue
11 Code of 1986 and those liabilities actually collected by the
12 Internal Revenue Service.
13 SEC. 302. JCT REPORT.
14 (a) IN GENERAL.—Not later than 180 days after the
15 submission of the first tax gap projection to Congress
16 under section 201, and not later than 90 days after the
17 submission of each successive submission, the Chief of
18 Staff of the Joint Committee on Taxation shall submit to
19 the Committee on Ways and Means of the House of Rep-
20 resentatives and the Committee on Finance of the Senate
21 a report analyzing such projection, including—
22 (1) identification of methodologies used,
23 (2) any statistical or methodological uncertain-
pamtmann on DSKBC07HB2PROD with BILLS
24 ties,
•S 4046 IS
VerDate Sep 11 2014 16:10 Apr 11, 2022 Jkt 029200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S4046.IS S4046
10
1 (3) the effect of outdated data, if any, on the
2 accuracy of such projection, and
3 (4) such additional information as the Joint
4 Committee on Taxation determines is useful for
5 Congress to use to assess and analyze the tax gap
6 projections provided by the Commissioner of Inter-
7 nal Revenue.
8 (b) RELEASE OF INFORMATION.—For purposes of fa-
9 cilitating the report described in subsection (a), the Sec-
10 retary of the Treasury shall, in a timely manner, provide
11 to the Joint Committee on Taxation such information as
12 such committee requests.
13 SEC. 303. RESTRICTION ON INCREASED ENFORCEMENT
14 FUNDS.
15 (a) IN GENERAL.—Notwithstanding any other provi-
16 sion of law, no funds appropriated to the Department of
17 the Treasury for audit and enforcement purposes in excess
18 of the levels appropriated for such purposes in fiscal year
19 2021 may be expended for such purposes, including for
20 salaries, expenses, and enforcement activities, until 180
21 days after the Internal Revenue Service publishes an up-
22 dated tax gap projection pursuant to, and compliant with,
23 section 201.
pamtmann on DSKBC07HB2PROD with BILLS
•S 4046 IS
VerDate Sep 11 2014 16:10 Apr 11, 2022 Jkt 029200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S4046.IS S4046
11
1 (b) SUNSET.—The provisions of subsection (a) shall
2 not apply after the date which is one year after the date
3 of the enactment of this section.
4 SEC. 304. RESTRICTION ON INCREASED FUNDING FOR
5 OTHER SPECIFIED PURPOSES.
6 (a) IN GENERAL.—Notwithstanding any other provi-
7 sion of law, no funds appropriated to the Department of
8 the Treasury in excess of the levels appropriated for speci-
9 fied purposes in fiscal year 2021 may be expended for
10 specified purposes.
11 (b) SPECIFIED PURPOSES.—For purposes of sub-
12 section (a), the term ‘‘specified purposes’’ means—
13 (1) the implementation of new information re-
14 porting requirements on flows of deposits and with-
15 drawals in individual and small-business banking ac-
16 counts and other financial accounts,
17 (2) the targeting of United States citizens in re-
18 sponse to the exercise by such citizens of any legally
19 protected or recognized right guaranteed under the
20 First Amendment to the United States Constitution,
21 (3) the targeting of a group for regulatory scru-
22 tiny based on the ideological beliefs of such group,
23 (4) the auditing of individual taxpayers with an
pamtmann on DSKBC07HB2PROD with BILLS
24 adjusted gross income of less than $400,000, and
•S 4046 IS
VerDate Sep 11 2014 16:10 Apr 11, 2022 Jkt 029200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S4046.IS S4046
12
1 (5) the hiring under an agreement pursuant to
2 the Intragovernmental Personnel Act of 1970 (sec-
3 tions 3371 et seq. of title 5, United States Code) or
4 any other authority of an authorized researcher who
5 is not a full time Federal employee to access data
6 subject to privacy protections afforded by section
7 6103 of the Internal Revenue Code of 1986.
8 SEC. 305. EFFICIENT USE OF EXISTING IRS RESOURCES.
9 For purposes of increasing enforcement actions in
10 areas of high noncompliance and reducing the corporate
11 audit no-change rate of the Internal Revenue Service to
12 below 20 percent by 2023—
13 (1) the Secretary (or the Secretary’s delegate)
14 shall, not later than 180 days after the date of the
15 enactment of this section—
16 (A) update the methodology that is used
17 for the selection of corporate returns for audit,
18 and
19 (B) reassign resources of the Internal Rev-
20 enue Service such that the majority of high-in-
21 come nonfilers are subject to enforcement ac-
22 tions, and
23 (2) the Comptroller General of the United
pamtmann on DSKBC07HB2PROD with BILLS
24 States shall, within one year after the date of the
25 enactment of this section, issue a comprehensive re-
•S 4046 IS
VerDate Sep 11 2014 16:10 Apr 11, 2022 Jkt 029200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S4046.IS S4046
13
1 port to Congress on information returns and data
2 collected by the Internal Revenue Service that could
3 be deployed for compliance activities but that are
4 not currently used for such activities.
5 SEC. 306. IRS FELLOWSHIP PROGRAM.
6 (a) ESTABLISHMENT.—Not later than September 30,
7 2022, the Commissioner of Internal Revenue (hereinafter
8 known as the ‘‘Commissioner’’) after consultation with the
9 Chief Counsel of the Internal Revenue Service (hereinafter
10 known as the ‘‘Chief Counsel’’), shall establish within the
11 Internal Revenue Service a fellowship program (herein-
12 after known as the ‘‘program’’) to recruit private sector
13 tax experts to join the Internal Revenue Service to create
14 and participate in the audit task force established under
15 subsection (e).
16 (b) OBJECTIVE.—The Commissioner, after consulta-
17 tion with the Chief Counsel, shall design the program in
18 a manner such that the program—
19 (1) addresses such tax cases handled by the In-
20 ternal Revenue Service as the Commissioner deter-
21 mines—
22 (A) are the most complex, or
23 (B) include new and emerging issues, and
pamtmann on DSKBC07HB2PROD with BILLS
24 (2) recruits and retains outstanding and quali-
25 fied tax experts.
•S 4046 IS
VerDate Sep 11 2014 16:10 Apr 11, 2022 Jkt 029200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\S4046.IS S4046
14
1 (c) ADVERTISEMENT OF PROGRAM.—The Commis-
2 sioner shall advertise the program in such a way as to
3 attract mid-career tax professionals, including certified
4 public accountants, tax attorneys, and such other tax pro-
5 fessionals as the Commissioner determines are appro-
6 priately qualified to handle the most complex tax cases.
7 (d) STRUCTURE.—
8 (1) IN GENERAL.—The program shall be
9 staffed by not fewer than 30 fellows at the discretion
10 of the Commissioner based on needs of the Internal
11 Revenue Service and the availability of qualified can-
12 didates.
13 (2) TERM OF SERVICE.—
14 (A) IN GENERAL.—Each fellow shall be
15 hired for a 2-, 3-, or 4-year term of service.
16 (B) EXTENSIONS.—
17 (i) IN GENERAL.—A fellow may apply
18 for, and the Commissioner may grant, a 1-
19 year extension of the fellowship.
20 (ii) NO LIMIT ON NUMBER OF EXTEN-
21 SIONS.—There shall be no limit on the
22 number of extensions under clause (i).
23 (3) FELLOWSHIP VACANCIES.—The Commis-
pamtmann on DSKBC07HB2PROD with BILLS
24 sioner, after consultation with the Chief Counsel,
25 shall fill vacant fellowships—
•S 4046 IS
VerDate Sep 11 2014 16:10 Apr 11, 2022 Jkt 029200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\S4046.IS S4046
15
1 (A) in such a manner as to ensure that the
2 program is staffed with no fewer than 15 fel-
3 lows, and
4 (B) as soon as practicable after the va-
5 cancy arises.
6 (4) HIRING AUTHORITY.—The Commissioner
7 shall have authority to permanently hire a fellow at
8 the end of the term of service for such fellow.
9 (e) TASK FORCE.—Not later than the date on which
10 the first fellowship is awarded under this section, the Com-
11 missioner shall establish a task force within the Internal
12 Revenue Service and the office of the Chief Counsel in
13 both national and regional office placements that includes
14 the fellows hired pursuant to subsection (d), the purpose
15 of which is to—
16 (1) perform audit case selection,
17 (2) educate Internal Revenue Service employees
18 on emerging issues,
19 (3) audit selected taxpayers,
20 (4) address offshore tax evasion and issues im-
21 plicating the Foreign Account Tax Compliance Act,
22 and
23 (5) identify, mentor, and train junior employees
pamtmann on DSKBC07HB2PROD with BILLS
24 from the Internal Revenue Service with respect to
25 audits.
•S 4046 IS
VerDate Sep 11 2014 16:10 Apr 11, 2022 Jkt 029200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\S4046.IS S4046
16
1 (f) COMPOSITION.—The task force established under
2 subsection (e) may be composed of both—
3 (1) fellows, and
4 (2) permanent employees of the Internal Rev-
5 enue Service.
6 (g) PAY OF FELLOWS.—
7 (1) IN GENERAL.—The Secretary of the Treas-
8 ury (or the Secretary’s delegate) shall determine,
9 subject to the provisions of this subsection, the pay
10 of fellows recruited under subsection (a).
11 (2) PAY SCALE.—For purposes of paragraph
12 (1), the pay of a fellow shall not be less than the
13 minimum rate payable for GS–15 of the General
14 Schedule and shall not exceed the amount of annual
15 compensation (excluding expenses) specified in sec-
16 tion 102 of title 3, United States Code.
17 (h) ADMINISTRATION OF PROGRAM.—The Secretary
18 may appoint a lead program officer to administer and ad-
19 vertise the program.
20 (i) ANNUAL REVIEW AND REPORT.—Not later than
21 1 year after the date on which the first fellowship is
22 awarded under this section, and annually thereafter, the
23 Commissioner shall submit to Congress a report con-
pamtmann on DSKBC07HB2PROD with BILLS
24 taining—
25 (1) an analysis of the effects of the program,
•S 4046 IS
VerDate Sep 11 2014 16:10 Apr 11, 2022 Jkt 029200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\S4046.IS S4046
17
1 (2) an analysis of the return on investment of
2 the program, including calculations of all costs in-
3 curred and all tax revenue and penalties collected
4 due to the work of the task force,
5 (3) a description of the total number of fellows
6 who apply each year, and
7 (4) recommendations for changes to the pro-
8 gram, if any.
9 (j) RULES AND REGULATIONS.—The Commissioner,
10 with the approval of the Secretary of the Treasury (or the
11 Secretary’s delegate, other than the Commissioner), shall
12 promulgate such rules and regulations as may be nec-
13 essary for the efficient administration of the program.
14 TITLE IV—PROVISIONS TO RE-
15 DUCE IMPROPER TAX PAY-
16 MENTS
17 SEC. 401. FINDINGS AND PURPOSE.
18 (a) FINDINGS.—Congress finds that when the Inter-
19 nal Revenue Service makes payments to taxpayers, the In-
20 ternal Revenue Services must make every effort to confirm
21 that the right recipient is receiving the right payment for
22 the right reason at the right time.
23 (b) PURPOSE.—The purpose of this title is to—
pamtmann on DSKBC07HB2PROD with BILLS
24 (1) reduce improper tax payments by the Inter-
25 nal Revenue Service—
•S 4046 IS
VerDate Sep 11 2014 16:10 Apr 11, 2022 Jkt 029200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\S4046.IS S4046
18
1 (A) by intensifying efforts to eliminate
2 payment error, waste, fraud, and abuse; and
3 (B) continuing to ensure that the Internal
4 Revenue Service provides accessible taxpayer
5 services;
6 (2) adopt a comprehensive set of policies, in-
7 cluding—
8 (A) transparency of significant improper
9 tax payments; and
10 (B) accountability for reducing improper
11 tax payments; and
12 (3) protecting taxpayer services.
13 SEC. 402. IMPROPER TAX PAYMENT DEFINED.
14 For purposes of this title, the term ‘‘improper tax
15 payment’’ means any credit or refund of an overpayment
16 of a tax imposed under the Internal Revenue Code of 1986
17 that should not have been made or that was made in an
18 incorrect amount.
19 SEC. 403. TRANSPARENCY.
20 (a) IN GENERAL.—Not later than 90 days after the
21 date of enactment of this section, the Secretary of the
22 Treasury shall establish, in coordination with the Commis-
23 sioner of Internal Revenue, annual targets for reducing
pamtmann on DSKBC07HB2PROD with BILLS
24 improper tax payments made by the Internal Revenue
25 Service.
•S 4046 IS
VerDate Sep 11 2014 16:10 Apr 11, 2022 Jkt 029200 PO 00000 Frm 00018 Fmt 6652 Sfmt 6201 E:\BILLS\S4046.IS S4046
19
1 (b) PUBLISHED INFORMATION.—
2 (1) IN GENERAL.—Not later than 180 days
3 after the date of enactment of this section, and an-
4 nually thereafter, the Secretary of the Treasury shall
5 publish on the internet information about improper
6 tax payments made by the Internal Revenue Service.
7 (2) CONTENTS.—The information published
8 under paragraph (1) shall include, subject to Fed-
9 eral privacy policies and to the extent permitted by
10 law—
11 (A) the name of the accountable official
12 designated under section 404(a);
13 (B) rates and amounts as of the date of
14 enactment of this section, and historical rates
15 and amounts, of improper tax payments made
16 by the Internal Revenue Service, including, if
17 known and appropriate, the causes of the im-
18 proper tax payments;
19 (C) rates and amounts as of the date of
20 enactment of this section, and historical rates
21 and amounts, of the recovery of improper tax
22 payments (estimated on the basis of applicable
23 samples where appropriate); and
pamtmann on DSKBC07HB2PROD with BILLS
24 (D) the annual targets for reducing im-
25 proper tax payments.
•S 4046 IS
VerDate Sep 11 2014 16:10 Apr 11, 2022 Jkt 029200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6201 E:\BILLS\S4046.IS S4046
20
1 (c) METHODOLOGY.—The methodology used for iden-
2 tifying and measuring improper tax payments under this
3 section shall meet the requirement of section
4 3352(c)(1)(A) of title 31, United States Code.
5 (d) LINKS.—The Commissioner of Internal Revenue
6 shall prominently display on the homepage of the website
7 of the Internal Revenue Service a link to internet-based
8 resources for addressing improper tax payments, including
9 the information published under subsection (b)(1).
10 SEC. 404. ACCOUNTABILITY AND COORDINATION.
11 (a) ACCOUNTABLE OFFICIALS.—Not later than 120
12 days after the date of enactment of this section, the Com-
13 missioner of Internal Revenue shall designate an official
14 to be accountable for meeting the reduction targets under
15 section 403(a) without unduly burdening taxpayer serv-
16 ices.
17 (b) REPORT.—
18 (1) IN GENERAL.—Not later than 180 days
19 after the date of enactment of this section, and an-
20 nually thereafter, the official who is designated
21 under subsection (a) shall provide the Director of
22 the Office of Management and Budget and the ap-
23 propriate congressional committees a report that in-
pamtmann on DSKBC07HB2PROD with BILLS
24 cludes—
•S 4046 IS
VerDate Sep 11 2014 16:10 Apr 11, 2022 Jkt 029200 PO 00000 Frm 00020 Fmt 6652 Sfmt 6201 E:\BILLS\S4046.IS S4046
21
1 (A) the methodology used for identifying
2 and measuring improper tax payments under
3 section 403(c);
4 (B) the plans for meeting the reduction
5 targets under section 403(a); and
6 (C) the plans and supporting analysis for
7 ensuring that initiatives undertaken in accord-
8 ance with this title do not unduly burden tax-
9 payer services.
10 (2) APPROPRIATE CONGRESSIONAL COMMIT-
11 TEES.—For purposes of paragraph (1), the term
12 ‘‘appropriate congressional committees’’ means the
13 Committee on Finance of the Senate and the Com-
14 mittee on Ways and Means of the House of Rep-
15 resentatives.
16 (c) DUTIES OF INSPECTOR GENERAL.—Not later
17 than 60 days after the date on which the annual report
18 required under subsection (b) is submitted, the Treasury
19 Inspector General for Tax Administration shall—
20 (1) assess the level of risk for improper tax
21 payments by the Internal Revenue Service;
22 (2) determine the extent of oversight warranted
23 (in addition to oversight requirements under section
pamtmann on DSKBC07HB2PROD with BILLS
24 3353 of title 31, United States Code); and
•S 4046 IS
VerDate Sep 11 2014 16:10 Apr 11, 2022 Jkt 029200 PO 00000 Frm 00021 Fmt 6652 Sfmt 6201 E:\BILLS\S4046.IS S4046
22
1 (3) provide the Commissioner of Internal Rev-
2 enue with recommendations, if any, for modifying
3 the methodology, improper tax payment reduction
4 plans, or taxpayer services.
5 (d) AGENCY FAILURE.—
6 (1) IN GENERAL.—If the Internal Revenue
7 Service does not demonstrate an improvement in re-
8 ducing improper tax payments, fails to develop a
9 plan to meet reduction targets under subsection
10 (b)(1)(B), or fails to implement the plans described
11 in subsection (b)(1)(C) for not less than 2 consecu-
12 tive years, the official designated under subsection
13 (a) shall submit to the Commissioner of Internal
14 Revenue, the Treasury Inspector General for Tax
15 Administration, and the Chief Financial Officer of
16 the Internal Revenue Service a report that—
17 (A) describe the likely causes of the lack or
18 improvement or failure; and
19 (B) proposes a remedial plan.
20 (2) REVIEW.—Annually, the Commissioner of
21 Internal Revenue shall, with respect to a remedial
22 plan proposed under paragraph (1)(B)—
23 (A) review the remedial plan; and
pamtmann on DSKBC07HB2PROD with BILLS
24 (B) in consultation with the Treasury In-
25 spector General for Tax Administration and
•S 4046 IS
VerDate Sep 11 2014 16:10 Apr 11, 2022 Jkt 029200 PO 00000 Frm 00022 Fmt 6652 Sfmt 6201 E:\BILLS\S4046.IS S4046
23
1 Chief Financial Officer of the Internal Revenue
2 Service, forward the remedial plan and any ad-
3 ditional comments and analysis to the Director
4 of the Office of Management and Budget.
5 SEC. 405. POLICY PROPOSALS.
6 (a) IN GENERAL.—Not later than 180 days after the
7 date of enactment of this section, the Secretary of the
8 Treasury, in consultation with the Commissioner of Inter-
9 nal Revenue and the Treasury Inspector General for Tax
10 Administration, shall develop policy recommendations, in-
11 cluding potential legislative proposals, designed to reduce
12 improper tax payments, including improper tax payments
13 caused by error, waste, fraud, and abuse, made by the In-
14 ternal Revenue Service.
15 (b) INCLUSION.—The recommendations developed
16 under subsection (a) shall be included, as appropriate, in
17 the budget of the President under section 1105(a) of title
18 31, United States Code, for fiscal year 2023 and each fis-
19 cal year thereafter.
Æ
pamtmann on DSKBC07HB2PROD with BILLS
•S 4046 IS
VerDate Sep 11 2014 16:10 Apr 11, 2022 Jkt 029200 PO 00000 Frm 00023 Fmt 6652 Sfmt 6301 E:\BILLS\S4046.IS S4046
File and source
- File
- BILLS_bills-117s4046is_bills-117s4046is.pdf
- Size
- 265,922 bytes
- SHA-256
- 5555344333be2aa55d0081c2628aa077da1736d8ead783535c618216f904c945
- Original
- www.govinfo.gov