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John Lewis Taxpayer Protection Act

12/30/2022, 5:32 PM

Summary of Bill HR 3738

The John Lewis Taxpayer Protection Act, also known as Bill 117 hr 3738, is a piece of legislation introduced in the US Congress aimed at protecting taxpayers from identity theft and tax fraud. The bill is named after the late civil rights leader and congressman John Lewis.

The main provisions of the bill include strengthening the security measures for taxpayer information held by the Internal Revenue Service (IRS) to prevent unauthorized access and misuse. This includes implementing stricter protocols for verifying the identity of individuals filing tax returns and requesting refunds.

Additionally, the John Lewis Taxpayer Protection Act seeks to increase penalties for individuals found guilty of committing tax fraud or identity theft. This is intended to deter fraudulent activities and hold perpetrators accountable for their actions. The bill also includes provisions for improving taxpayer education and awareness about the risks of identity theft and tax fraud. This includes providing resources and information to help taxpayers protect themselves from becoming victims of these crimes. Overall, the John Lewis Taxpayer Protection Act aims to enhance the security and integrity of the tax system, protect taxpayers from financial harm, and uphold the trust and confidence in the IRS. It is currently being reviewed and debated in Congress, with bipartisan support for its passage.

Congressional Summary of HR 3738

John Lewis Taxpayer Protection Act

This bill sets forth provisions for the protection of taxpayers from abusive tax collection practices and provides other protections for low-income taxpayers.

Specifically, it

  • repeals the authority for private sector tax collection contracts,
  • allows an exclusion from gross income for income attributable to the discharge of taxpayer indebtedness,
  • repeals the suspension of the statute of limitations during a pending application for taxpayer assistance orders,
  • restricts tax levies on tax-exempt retirement plans,
  • suspends tax levies on taxpayers during periods of financial disability,
  • repeals the partial payment requirement for submitting offers in compromise of tax liabilities,
  • requires the Internal Revenue Service to provide notice to taxpayers of eligibility for the earned income tax credit and refunds of such credit,
  • authorizes the Department of the Treasury to regulate and sanction income tax preparers, and
  • increases funding for low-income taxpayer clinics and taxpayer services.

Current Status of Bill HR 3738

Bill HR 3738 is currently in the status of Bill Introduced since June 4, 2021. Bill HR 3738 was introduced during Congress 117 and was introduced to the House on June 4, 2021.  Bill HR 3738's most recent activity was Referred to the House Committee on Ways and Means. as of June 4, 2021

Bipartisan Support of Bill HR 3738

Total Number of Sponsors
1
Democrat Sponsors
1
Republican Sponsors
0
Unaffiliated Sponsors
0
Total Number of Cosponsors
0
Democrat Cosponsors
0
Republican Cosponsors
0
Unaffiliated Cosponsors
0

Policy Area and Potential Impact of Bill HR 3738

Primary Policy Focus

Taxation

Potential Impact Areas

- Administrative remedies
- Appropriations
- Crime victims
- Department of the Treasury
- Disability and paralysis
- Employee benefits and pensions
- Executive agency funding and structure
- Fraud offenses and financial crimes
- Income tax credits
- Internal Revenue Service (IRS)
- Poverty and welfare assistance
- Public contracts and procurement
- Tax administration and collection, taxpayers
- Wages and earnings

Alternate Title(s) of Bill HR 3738

John Lewis Taxpayer Protection Act
To amend the Internal Revenue Code of 1986 to reduce taxpayer burdens and enhance taxpayer protections, and for other purposes.
John Lewis Taxpayer Protection Act

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