Simplify, Don’t Amplify the IRS Act

Hozzl · 2023-12-15T15:56:50Z

Explore the details of House Bill 2556 Simplify, Don’t Amplify the IRS Act currently in Congress. Get insights into its purpose, current status, sponsors, and potential impact on Taxation. Stay informed on legislative developments.

12/15/2023, 3:56 PM

Summary of Bill HR 2556

Bill 118 hr 2556, also known as the Simplify, Don't Amplify the IRS Act, is a piece of legislation currently being considered by the US Congress. The main goal of this bill is to streamline and simplify the tax code, making it easier for individuals and businesses to understand and comply with their tax obligations.

One of the key provisions of the bill is the elimination of certain tax deductions and credits that are deemed to be overly complex or unnecessary. This includes the elimination of the Alternative Minimum Tax (AMT) for individuals, as well as the repeal of various tax breaks for special interests.

Additionally, the bill aims to reduce the size and scope of the Internal Revenue Service (IRS) by cutting funding for certain programs and initiatives that are seen as unnecessary or redundant. This includes a reduction in funding for tax enforcement activities that are deemed to be overly aggressive or burdensome. Overall, the Simplify, Don't Amplify the IRS Act is designed to make the tax code simpler and more straightforward, while also reducing the size and scope of the IRS. Supporters of the bill argue that this will make it easier for individuals and businesses to comply with their tax obligations, while also reducing the burden on taxpayers and the government. Critics, however, argue that the bill may lead to a loss of revenue for the government and could potentially benefit the wealthy at the expense of the middle class.

Congressional Summary of HR 2556

Simplify, Don't Amplify the IRS Act

This bill limits Internal Revenue Service (IRS) enforcement authority and modifies certain IRS reporting requirements.

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.

Read the Full Bill

Formatted Text PDF Formatted XML

Current Status of Bill HR 2556

Bill HR 2556 is currently in the status of Bill Introduced since April 10, 2023. Bill HR 2556 was introduced during Congress 118 and was introduced to the House on April 10, 2023. Bill HR 2556's most recent activity was Referred to the Committee on Ways and Means, and in addition to the Committees on Financial Services, and Oversight and Accountability, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned. as of April 10, 2023

Bipartisan Support of Bill HR 2556

Total Number of Sponsors

Democrat Sponsors

Republican Sponsors

Unaffiliated Sponsors

Total Number of Cosponsors

Democrat Cosponsors

Republican Cosponsors

Unaffiliated Cosponsors

Policy Area and Potential Impact of Bill HR 2556

Primary Policy Focus

Taxation

Alternate Title(s) of Bill HR 2556

Simplify, Don’t Amplify the IRS Act

To amend the Internal Revenue Code of 1986 to improve and promote transparency, efficiency and operational integrity of the Internal Revenue Service, and for other purposes.