[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 1054 Introduced in Senate (IS)]
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118th CONGRESS
1st Session
S. 1054
To reduce improper payments and eliminate waste in Federal programs,
and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 29, 2023
Mr. Braun introduced the following bill; which was read twice and
referred to the Committee on Homeland Security and Governmental Affairs
_______________________________________________________________________
A BILL
To reduce improper payments and eliminate waste in Federal programs,
and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``IRS Improper Payments Act''.
SEC. 2. FINDINGS AND PURPOSE.
(a) Findings.--Congress finds that when the Internal Revenue
Service makes payments to taxpayers, the Internal Revenue Services must
make every effort to confirm that the right recipient is receiving the
right payment for the right reason at the right time.
(b) Purpose.--The purpose of this Act is to--
(1) reduce improper tax payments by the Internal Revenue
Service--
(A) by intensifying efforts to eliminate payment
error, waste, fraud, and abuse; and
(B) by continuing to ensure that the Internal
Revenue Service provides accessible taxpayer services;
(2) adopt a comprehensive set of policies, including--
(A) transparency of significant improper tax
payments; and
(B) accountability for reducing improper tax
payments; and
(3) protect taxpayer services.
SEC. 3. IMPROPER TAX PAYMENT DEFINED.
For purposes of this Act, the term ``improper tax payment'' means
any credit or refund of an overpayment of a tax imposed under the
Internal Revenue Code of 1986 that should not have been made or that
was made in an incorrect amount.
SEC. 4. TRANSPARENCY.
(a) In General.--Not later than 90 days after the date of enactment
of this section, the Secretary of the Treasury shall establish, in
coordination with the Commissioner of Internal Revenue, annual targets
for reducing improper tax payments made by the Internal Revenue
Service.
(b) Published Information.--
(1) In general.--Not later than 180 days after the date of
enactment of this section, and annually thereafter, the
Secretary of the Treasury shall publish on the internet
information about improper tax payments made by the Internal
Revenue Service.
(2) Contents.--The information published under paragraph
(1) shall include, subject to Federal privacy policies and to
the extent permitted by law--
(A) the name of the accountable official designated
under section 5(a);
(B) rates and amounts as of the date of enactment
of this section, and historical rates and amounts, of
improper tax payments made by the Internal Revenue
Service, including, if known and appropriate, the
causes of the improper tax payments;
(C) rates and amounts as of the date of enactment
of this section, and historical rates and amounts, of
the recovery of improper tax payments (estimated on the
basis of applicable samples where appropriate); and
(D) the annual targets for reducing improper tax
payments.
(c) Methodology.--The methodology used for identifying and
measuring improper tax payments under this section shall meet the
requirement of section 3352(c)(1)(A) of title 31, United States Code.
(d) Links.--The Commissioner of Internal Revenue shall prominently
display on the homepage of the website of the Internal Revenue Service
a link to internet-based resources for addressing improper tax
payments, including the information published under subsection (b)(1).
SEC. 5. ACCOUNTABILITY AND COORDINATION.
(a) Accountable Officials.--Not later than 120 days after the date
of enactment of this section, the Commissioner of Internal Revenue
shall designate an official to be accountable for meeting the reduction
targets under section 4(a) without unduly burdening taxpayer services.
(b) Report.--
(1) In general.--Not later than 180 days after the date of
enactment of this section, and annually thereafter, the
official who is designated under subsection (a) shall provide
the Director of the Office of Management and Budget and the
appropriate congressional committees a report that includes--
(A) the methodology used for identifying and
measuring improper tax payments under section 4(c);
(B) the plans for meeting the reduction targets
under section 4(a); and
(C) the plans and supporting analysis for ensuring
that initiatives undertaken in accordance with this
title do not unduly burden taxpayer services.
(2) Appropriate congressional committees.--For purposes of
paragraph (1), the term ``appropriate congressional
committees'' means the Committee on Finance of the Senate and
the Committee on Ways and Means of the House of
Representatives.
(c) Duties of Inspector General.--Not later than 60 days after the
date on which the annual report required under subsection (b) is
submitted, the Treasury Inspector General for Tax Administration
shall--
(1) assess the level of risk for improper tax payments by
the Internal Revenue Service;
(2) determine the extent of oversight warranted (in
addition to oversight requirements under section 3353 of title
31, United States Code); and
(3) provide the Commissioner of Internal Revenue with
recommendations, if any, for modifying the methodology,
improper tax payment reduction plans, or taxpayer services.
(d) Agency Failure.--
(1) In general.--If the Internal Revenue Service does not
demonstrate an improvement in reducing improper tax payments,
fails to develop a plan to meet reduction targets under
subsection (b)(1)(B), or fails to implement the plans described
in subsection (b)(1)(C) for not less than 2 consecutive years,
the official designated under subsection (a) shall submit to
the Commissioner of Internal Revenue, the Treasury Inspector
General for Tax Administration, and the Chief Financial Officer
of the Internal Revenue Service a report that--
(A) describe the likely causes of the lack or
improvement or failure; and
(B) proposes a remedial plan.
(2) Review.--Annually, the Commissioner of Internal Revenue
shall, with respect to a remedial plan proposed under paragraph
(1)(B)--
(A) review the remedial plan; and
(B) in consultation with the Treasury Inspector
General for Tax Administration and Chief Financial
Officer of the Internal Revenue Service, forward the
remedial plan and any additional comments and analysis
to the Director of the Office of Management and Budget.
SEC. 6. POLICY PROPOSALS.
(a) In General.--Not later than 180 days after the date of
enactment of this section, the Secretary of the Treasury, in
consultation with the Commissioner of Internal Revenue and the Treasury
Inspector General for Tax Administration, shall develop policy
recommendations, including potential legislative proposals, designed to
reduce improper tax payments, including improper tax payments caused by
error, waste, fraud, and abuse, made by the Internal Revenue Service.
(b) Inclusion.--The recommendations developed under subsection (a)
shall be included, as appropriate, in the budget of the President under
section 1105(a) of title 31, United States Code, for fiscal year 2024
and each fiscal year thereafter.
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