Simplify, Don’t Amplify the IRS Act

12/29/2022, 11:48 PM

Simplify, Don't Amplify the IRS Act

This bill limits Internal Revenue Service (IRS) enforcement authority and modifies certain IRS reporting requirements. It also eliminates certain restrictions on the use of coronavirus recovery funds.

Among other provisions, the bill

  • increases the gross receipts reporting threshold for certain religious and charitable organizations from $5,000 to $50,000;
  • generally increases penalties for unauthorized disclosure of taxpayer information and for such disclosures by tax return preparers;
  • requires the IRS to establish a fellowship program to recruit private sector tax experts to create a task force to. among other things, educate IRS employees on emerging issues, perform audits, and address offshore tax evasion; and
  • sets forth provisions for reducing improper payments to taxpayers.

The bill also requires the IRS to report annually on the tax gap estimate for the most recent taxable year. The IRS must use artificial intelligence to calculate an estimate of the tax gap. The bill defines tax gap as the difference between tax liabilities owed to the United States and those liabilities actually collected.

The bill restricts funding for IRS audits and enforcement until the IRS publishes an updated tax gap projection.

Congress
117
Number
S - 4046
Introduced on
2022-04-07
# Amendments
0
Sponsors
+5

Variations and Revisions

4/7/2022
Text
PDF
XML

Status of Legislation

Bill Introduced
Introduced to House
House to Vote
Introduced to Senate
Senate to Vote

Purpose and Summary

Simplify, Don't Amplify the IRS Act

This bill limits Internal Revenue Service (IRS) enforcement authority and modifies certain IRS reporting requirements. It also eliminates certain restrictions on the use of coronavirus recovery funds.

Among other provisions, the bill

  • increases the gross receipts reporting threshold for certain religious and charitable organizations from $5,000 to $50,000;
  • generally increases penalties for unauthorized disclosure of taxpayer information and for such disclosures by tax return preparers;
  • requires the IRS to establish a fellowship program to recruit private sector tax experts to create a task force to. among other things, educate IRS employees on emerging issues, perform audits, and address offshore tax evasion; and
  • sets forth provisions for reducing improper payments to taxpayers.

The bill also requires the IRS to report annually on the tax gap estimate for the most recent taxable year. The IRS must use artificial intelligence to calculate an estimate of the tax gap. The bill defines tax gap as the difference between tax liabilities owed to the United States and those liabilities actually collected.

The bill restricts funding for IRS audits and enforcement until the IRS publishes an updated tax gap projection.

Alternative Names
Official Title as IntroducedA 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.
Policy Areas
Taxation
Potential Impact
Accounting and auditing•
Appropriations•
Bank accounts, deposits, capital•
Cardiovascular and respiratory health•
Computers and information technology•
Congressional oversight•
Criminal procedure and sentencing•
Department of the Treasury•
Elections, voting, political campaign regulation•
Emergency medical services and trauma care•
Employee hiring•
Employee performance•
Evidence and witnesses•
Executive agency funding and structure•
First Amendment rights•
Government employee pay, benefits, personnel management•
Government ethics and transparency, public corruption•
Government information and archives•
Government studies and investigations•
Income tax credits•
Income tax deductions•
Income tax rates•
Infectious and parasitic diseases•
Internal Revenue Service (IRS)•
Labor-management relations•
Political movements and philosophies•
Right of privacy•
Social work, volunteer service, charitable organizations•
State and local finance•
State and local government operations•
State and local taxation•
Tax administration and collection, taxpayers•
Tax-exempt organizations•
U.S. territories and protectorates

Comments

Related

Bill Update Alert:  A bill to require the Internal Revenue Service to issue a report on the tax gap, to establish a fellowship program within the Internal Revenue Service to recruit mid-career tax professionals to create and participate in an audit task force, and for other purposes.
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Bill Update Alert:  National Forest Restoration and Remediation Act
Bill Update Alert:  IRS Customer Service Improvement Act
Bill Update Alert:  Protect Taxpayers’ Privacy Act

Recent Activity

Latest Summary4/29/2022

Simplify, Don't Amplify the IRS Act

This bill limits Internal Revenue Service (IRS) enforcement authority and modifies certain IRS reporting requirements. It also eliminates certain restrictions on the use of coronavirus r...

Latest Action4/7/2022
Read twice and referred to the Committee on Finance.