[Congressional Record Volume 143, Number 38 (Friday, March 21, 1997)]
[Extensions of Remarks]
[Page E566]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                      IRS COMMISSIONER LEGISLATION

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                           HON. FRANK R. WOLF

                              of virginia

                    in the house of representatives

                         Friday, March 21, 1997

  Mr. WOLF. Mr. Speaker, today I am introducing legislation to ensure 
that the job of Internal Revenue Service Commissioner is filled by a 
person well qualified for this important, sensitive position who is 
insulated from political vagaries and undue influence.
  Are certain nonprofit groups the targets of IRS audits? Is the IRS 
motivated by politics in determining which individuals or groups are 
audited? Shortly after the White House Travel Office employees were 
fired in 1993, IRS auditors began auditing UltraAir, a charter air 
company which had done business with the Travel Office and which was 
the subject of unfounded rumors about securing Travel Office work using 
kickbacks. Two years later, and after untold costs to the Government 
and the airline, UltraAir was cleared of any wrongdoing. Was this audit 
one of political retribution or an attempt to justify Travel Office 
firings?
  Are IRS functions governed by objective interpretation and 
application of the tax code or are they directed by other interests? 
Almost daily, news reports are filled with allegations that the IRS is 
actually being run by politicians rather than career professionals, 
mindful of the fact that a well-placed, well-timed audit could have 
significant political rewards.
  Far too many believe the IRS is an agency manipulated by powerful 
people with political motives. Far too many believe that the IRS is 
used as a political tool of the presidency--perhaps used to distract 
the opposition--perhaps an audit will work to divert the opposition's 
time, attention, and resources toward tax compliance matters rather 
than in pursuing their ideological goals. Can we call in the IRS and 
neutralize the opposition?
  Ask your constituents what they fear most from the Federal Government 
and nearly all will say that one of their greatest fears is learning 
that they are being audited by the IRS. Not only does the IRS audit 
raise great concern, but for many who find themselves the focus of an 
audit, those concerns are compounded by the strongly held view that the 
agency may be politically motivated.
  When the IRS Commissioner serves at the pleasure of the President, 
the perception is that the Commissioner may be swayed to operate the 
IRS in a manner that pleases the White House and may even agree to 
pursue audits as directed or do other things to be assured continued 
employment. Is this perception reality? Stories abound of misuse or 
abuse of IRS power for political purposes--in this administration and 
in previous administrations throughout history.
  This is wrong. The IRS must be above partisan politics. Taxpayers--
individuals and organizations alike--must be assured that one of the 
most important agencies in the Federal Government is run in a fair, 
nonpartisan manner. Americans deserve to rest easy knowing that the IRS 
is working in an objective, even-handed way to assess and collect taxes 
owed to the Federal Government. Americans deserve this.
  That is why I am today introducing legislation which bolsters the 
integrity of the Internal Revenue Service by ensuring that the IRS is 
managed by an independent Commissioner, judged by his or her peers to 
be well-qualified to run the agency. My bill does two important things. 
First, the legislation establishes a new objective selection process 
for the IRS commissioner. Second, the legislation establishes a set 6-
year term for the Commissioner, and thereby provides an important 
degree of independence from the President.
  Under the provisions of this legislation, 150 days prior to the 
expiration of the Commissioner's term, or when a vacancy occurs, a 
special selection commission is established to consider potential 
candidates for commissioner. This commission will be comprised of peers 
qualified to assess the qualifications of potential candidates.
  Specifically, the commission will consist of five individuals having 
professional contacts with the IRS, appointed by the following 
organizations: First, a representative from the American Institute of 
Certified Public Accountants who is a certified public accountant; 
second, a representative from the American Bar Association who is a 
member of the Tax Division; third, a scientist from the National 
Academy of Scientists; fourth, an engineer from the Institute for 
Electronic and Electrical Engineers; and fifth, an economist from the 
American Economics Association.
  No later than 60 days after the commission is established, the 
commission submits to the President a slate of qualified candidates. 
The President then selects his nominee from that slate. Once approved 
by the Senate and sworn in, the new IRS commissioner then serves for a 
6-year term.
  This selection process is similar to the process used to select the 
comptroller of the General Accounting Office. In that instance, a 
special commission--comprised of members of the House and Senate--is 
established to consider potential candidates for the position and to 
present to the President a slate of qualified candidates for his 
consideration. This process has worked well for many years and has 
resulted in well-qualified persons serving as comptroller. I am 
convinced that the position of IRS Commissioner would benefit from a 
similar commission comprised of qualified individuals routinely doing 
business with the IRS. Let us follow the model provided and establish a 
selection commission for the IRS Commissioner.
  My legislation ensures that strong, qualified candidates are selected 
for IRS Commissioner and further ensures that the Commissioner is 
afforded necessary insulation and distance from attempts to make the 
IRS a tool for the party in power in the White House. We must give 
taxpayers renewed confidence in the IRS and in its ability to fulfill 
its mission in an unbiased, even-handed manner. My bill will do just 
that and I urge its support.

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