[Congressional Record Volume 143, Number 40 (Tuesday, April 8, 1997)]
[Extensions of Remarks]
[Page E588]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                       TAXPAYER BILL OF RIGHTS II

                                 ______
                                 

                           HON. JENNIFER DUNN

                             of washington

                    in the house of representatives

                         Tuesday, April 8, 1997

  Ms. DUNN. Mr. Speaker, throughout my tenure in Congress, I've heard 
from thousands of constituents who have described to me numerous 
problems they see with our system of taxation. A common theme has been 
the intrusive nature of the Internal Revenue Service [IRS]. Last year, 
the Congress enacted legislation I cosponsored, called the Taxpayer 
Bill of Rights II, to help taxpayers in their dealings with the IRS. 
While I believe those necessary reforms were a good start, I believe we 
need to do more.
  That's why I am introducing the IRS Accountability Act in the U.S. 
House of Representatives. This bill, whose companion has been 
introduced by Senator Paul Coverdell--my counterpart on the Senate 
leadership team--in the U.S. Senate, is designed to provide citizens 
greater tax fairness and protections from IRS abuses.
  The IRS Accountability Act is wide-ranging and deals with a number of 
faults within the IRS that have recurred through discussions with 
constituents, through testimony at hearings from everyday Americans, 
and through my tenure as a member of the tax-cutting Ways and Means 
Committee. Wherever I travel in the State or country, consistently 
concerns are raised about the IRS. This Agency operates too much on the 
belief that most taxpayers are intending to cheat the Government.
  Granted, our Nation suffers under an unfair and incomprehensible Tax 
Code that takes too much of what we earn. Even worse, some rogue 
members of the organization responsible for enforcement of the Tax 
Code--the IRS--have a record of seeking to intimidate and frighten 
honest, hard-working taxpayers. They also sully the reputation of 
honest people working at the Agency. We must not tolerate a Tax Code 
that punishes families and we should not tolerate IRS agents eager to 
bully and harass taxpayers.
  Let me outline my proposal. The IRS Accountability Act:
  Criminalizes extortion tactics by an IRS agent. The Act criminalizes 
the actions of employees of the Internal Revenue Service [IRS] who 
abuse their authority by maliciously and willfully disregarding the 
statutory procedures established for collecting a tax.
  Makes IRS agents accountable for their actions. Current law shields 
IRS employees from holding personal liability for their actions, even 
if their actions result in civil damages against the United States. 
Under this section:
  In cases where the judgment is against the United States, a Federal 
judge will have the authority to assign a portion of the damages 
awarded and court costs incurred to the IRS employee whose actions 
prompted the suit; and
  An IRS employee involved in such a court proceeding may be 
represented by the United States. However, these costs must be 
reimbursed fully if the employee is found personally liable.
  Protects the privacy of taxpayers. Current law makes it a crime to 
release tax returns or return information without proper authority. 
Further, such actions may result in the personal liability of the 
Federal employee responsible. Under this section:
  It will be a crime to willfully access without proper authority a 
taxpayer's return or return information. This has been called file 
snooping;
  Willfully accessing, without proper authority, a taxpayer's return or 
return information can result in personal liability; and
  The taxpayer will be notified upon discovery that his return or 
return information has been improperly accessed.
  Limits on audits. Current law allows the IRS to audit an entity--
taxpaying or tax exempt--for any reason, even if randomly selected. 
This section requires that all audits be justified. Under this section:
  Random audits are prohibited. Proof of reasonable justification for 
the audit will be available to the taxpayer upon demand;
  Reauditing a return or return issue is prohibited unless approved by 
court order in the course of investigating criminal activity; and
  The IRS will be limited to 3 years from the time a return is filed in 
which to conduct an audit unless approved by court order in the course 
of investigating criminal activity.
  Extension of time to pay tax without penalty. All too often, the IRS 
itself is the most significant hurdle honest taxpayers must meet when 
trying to resolve their tax bill. According to the Taxpayer Advocate 
for the IRS, one of the most common complaints against the IRS is its 
failure to acknowledge taxpayer correspondence.
  Delays, misinformation, and snafus by the IRS all contribute to 
higher and higher penalties for taxpayers. Extending the period to 90 
days before penalties may be applied will give honest taxpayers some 
welcome relief.
  Preserving the integrity of judicial decisions against the IRS. 
Often, the IRS will choose to nonacquiesce to a court's decision in 
which it loses. As a result, it will pursue a subsequent case against a 
different taxpayer under identical or similar circumstances.
  This section grants a Federal court the authority to dismiss a case 
of controversy involving the IRS if it can be shown that a similar or 
identical case already has been decided within the court's jurisdiction 
or circuit. The petitioner must previously have exhausted remedies 
available within the IRS before seeking such court relief.
  Limitations on asset seizures and levies. this section requires court 
approval to proceed with any asset seizure and/or levy.
  Limits accrual of interest. This section prevents interest from 
accruing on the penalty added to a tax owed.
  Equal interest rates charged. Current law gives the IRS an advantage 
over taxpayers by allowing it to charge a more favorable interest rate. 
Under this section, the interest rate charged by the IRS will be the 
same as the interest rate charged against the IRS in all cases.
  Fairness for mathematical and clerical errors. For mathematical and 
clerical errors, a.k.a. honest mistakes, the IRS is not required to 
follow the procedures of notification and collection provided for cases 
in which a tax is underpaid. Further, penalties and interest may be 
added to the tax underpaid in cases involving honest mistakes.
  Under this section, the taxpayer would have 60 days to either pay the 
tax or file an abatement request without incurring a penalty or 
interest accruing. However, should the 60-day period elapse without the 
taxpayer taking either option, penalties and interest would be owed in 
full.
  The honest American family works too hard and too long to have to 
deal with unfair and oftentimes overly intrusive IRS agents who trample 
their rights. The IRS deserves closer scrutiny when it goes beyond 
acceptable enforcement procedures and commits outright intimidation, or 
when it is unable to use ``common sense'' as a yardstick. This bill is 
part of a continuing effort to ensure that an overzealous Agency will 
no longer trample the rights of well-intentioned and law-abiding 
taxpayers.

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